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New Help for Student Loans; Debt Super Committee Opens Up; 'Occupy Oakland' Turns Violent; Europe's Financial Crisis Hurts U.S.; Judge Blocks Florida Welfare Drug Tests; Angry Customer Fire Bombs Restaurant; NBA Lockout's Effect on Olympics; Top 1 Percent Are Getting Richer; Interview with 'Joe the Plumber'
Aired October 26, 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 is the top of the hour. Thanks for joining us here in CNN NEWSROOM.
President Obama tossing a lifeline to young Americans drowning in college debt, why? Because grads from the class of '09 have racked up an average loan debt of $24,000 and a lot of them can't afford to pay.
The unemployment rate for college grads aged 24 and younger rose to 9.4 percent last year. That is the highest since the Labor Department began keeping records in 1995.
So the president will unveil a plan to help. And Christine Romans is crunching the numbers while Brianna Keilar is looking at the politics of the equation.
Let's go ahead and start with you, Christine. Let's kind of walk through the details of how this will actually help recent college grads.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: All right, three little words, income-based repayment. This is a program and the White House is speeding up the program that Congress has already passed quite frankly that means it's going to cap how much you're going to pay for your student loans.
It reduces your repayment amount so say it would be 10 percent of your discretionary income. Right now, your payments could be capped -- the student loan payments can be capped at 15 percent. The White House wants to lower that to 10 percent.
Also, it's going to accelerate your loan forgiveness date. What that means is after 20 years of faithfully paying your student loans every month on time that 10 percent of the income. If you still have a loan balance, the government would just forgive it and you'll be free and clear of those loans after 20 years.
Also another part of the program would give you a chance to consolidate your loans. So this is for people right now who are graduates who have different kinds of federal loans, you'd be able to consolidate them altogether and get about a half a percentage point lower interest. All of these would put a few hundred dollars maybe in some people's pockets every single month, which the White House says that would help now. Now something very clear -- I want to be clear about.
Congress passed a lot of this back in the health care reform, but what the White House is doing is to stepping up and speeding it up so that the class of 2012 can start to benefit from this -- Kyra.
PHILLIPS: Thanks. Let's over to the White House now. Brianna, the president is able to bypass Congress on this, right?
BRIANNA KEILAR, CNN WHITE HOUSE CORRESPONDENT: That's right, Kyra. It is a sign of a new strategy that the president is rolling out in earnest this week, a strategy of really going it alone without the help of Congress.
Using executive authority here as you heard Christine say to speed up some of the changes to that income-based student loan repayment program. It was supposed to go -- these changes were supposed to go into effect in 2014.
President Obama will be touting this today at the University of Colorado is scooting that up a couple of years, saying this is going to be going into effect in 2012. He did the same thing on Monday, when he unveiled a new housing assistance program.
You know the White House had put forward a housing assistance program before. It didn't really do a whole lot. It certainly didn't hit the mark of what it aimed to do, Kyra, so the president rolled out something else to help folks who are underwater on their loans.
That was something as well that he did with the executive authority. You are hearing a line this week from him as he is on the three-day western swing of "we can't wait" and doing it alone without Congress. Expect to hear him saying that again today -- Kyra.
PHILLIPS: All right, Brianna Keilar at the White House. Thanks. And on the Capitol Hill, the national debt looms large and so does an approaching deadline.
Lawmakers in the so-called "Super Committee" now have less than a month to identify $1.2 trillion in cuts over the next decade. Kate Bolduan on Capitol Hill. Kate, let's talk about the purpose of today's public hearing. Is it just window dressing?
KATE BOLDUAN, CNN CONGRESSIONAL CORRESPONDENT: I will tell you there are many growing skeptics up here on Capitol Hill and off of the Hill that would agree with that statement. I will tell you, Kyra, that the focus of this, I'm hearing is basically spending programs.
They're going to be looking at the government spending and obviously looking at areas where the government has cut spending in the past and where they possibly could cut here in terms of a deal for the "Super Committee."
Previous hearings have had to do with looking at the history and drivers of our nation's debt as well as revenue options. This is the first hearing in almost public hearing in almost five weeks. The "Super Committee" has been meeting much more often behind closed doors and almost exclusively really.
Today, they're going to be hearing from the director of the Congressional Budget Office. We talk about the CBO very often, kind of the gold standard of budget analysis up here, but I am hearing kind of outside of these public hearings from sources on both sides.
Democrats and Republicans, who are saying that the committee is making little progress towards an agreement and with a fast approaching deadline of November 23rd, clearly the pressure is on, and these are probably live pictures we are looking at now as the committee is coming to order.
We will be watching very closely to see if any of the members tip their hands on kind of where things stand and where things are heading. We are watching very closely to see if the group is going to be able to reach agreement -- Kyra.
PHILLIPS: Well, even if it comes up with $1.2 trillion in cuts, it is not enough.
BOLDUAN: That is what many of the budget experts are saying. By law, they are required at minimum to find $1.2 trillion in deficit savings. I have been talking to the budget experts especially this week, Dr. Alice Rivlin, one of the architects of a previous deficit reduction plan.
She says that is not going to be if they just reach that mark. That's not going to be enough to stabilize the country's debt. The president of the Committee of Responsible Federal Budget, Mayan McGinnes, I spoke with her
She said and what many other experts are saying is they need to go big. We keep hearing that of $3 trillion or $4 trillion or $5 trillion to really make a difference here, to really stabilize the country's debt.
As well as calm weary markets as many fear of another credit rating downgrade if this committee does not do big and if this committee fails to do its job -- Kyra.
PHILLIPS: All right. We're going to monitor it. Thanks, Kate.
After weeks of peaceful protests, patience runs out. Police moved in and dismantled the "Occupy Wall Street" movement in two major American cities.
In Oakland, California, you can see here the '60s-style showdown turned pretty violent, stun grenade explode, tear gas spewing and protesters refused to abandon their tent city, so this is what happened.
(BEGIN VIDEO CLIP) UNIDENTIFIED MALE: I heard these loud bangs and apparently it was the tear gas going off and then you feel like you want to throw up, and your eyes are stinging and get red. So I ran a couple of blocks out of the way.
CHIEF HOWARD JORDAN, OAKLAND POLICE: Several officers have been assaulted, doused with hazardous material, paint and bottles.
(END VIDEO CLIP)
PHILLIPS: An in Atlanta, police arrested 53 protesters here who refused to abandon their tent city in Woodruff Park. Police say the arrests were orderly and peaceful.
And in New York, Wall Street protesters are trying to soothe the growing anger of nearby residents. Neighbors have been complaining about these incessant beating of the drums so protesters promise to limit the noise now to four hours a day.
Let's return our focus to Oakland. Dan Simon is actually there. So Dan, it's looks pretty calm behind you right now. Let's talk about what actually led to the showdown that we saw overnight.
DAN SIMON, CNN CORRESPONDENT: Well, just before sunrise here in Oakland right now. I'm going to step out of the way and you can see what it looks like right now. You can see these barricades that have been set up behind and a few police officers still in riot gear and a couple of protesters, but for the most part things have died down here.
I want to explain how this all began. These protesters had camped out in front of city hall for 15 days. Police were getting concerned about the health situation over there in about the safety situation. So they disbanded everybody yesterday afternoon and told them to hit the road.
The streets were barren, and then a few hours later, about 500 protesters decided they wanted to take city hall back. So they started to march towards city hall, and that is when they were met by police.
Things were peaceful until according to police objects were being thrown at them, water bottles, paint, and that is when they unloaded their tear gas canisters. And things sort of really turned violent. It was like that all throughout the night, and then sort of calmed down, and this is the situation again what it looks like right now, sort of peaceful.
I think we will get a better sense throughout the day what things will be like, you know, as soon as the sun comes out and what organizers of the movement plan to do next -- Kyra.
PHILLIPS: Dan, it sounds like the police felt threatened. So are they facing criticism now for the way things were handled or do folks understand what triggered this? SIMON: Well, certainly the protesters feel like this was overzealous behavior. I think that, again, we will get a better sense as the day unfolds what community organizers have to say about this from the police officer's point of view.
Any time they are threatened. Their lives are threatened with objects being thrown at them. They felt like that was the best way to get the crowd to break up.
But you look at the images certainly violent and I think there will be some questions as to whether or not they used the appropriate amount of force.
PHILLIPS: Dan Simon, we will follow it. Dan, thanks.
Stocks on Wall Street took a huge hit yesterday. The Dow, Nasdaq, S&P 500, all tumbled about two yesterday. It -- the big concern these days as well, the debt problems in Europe.
Alison Kosik at the New York Stock Exchange. So, Alison, we've been talking about this big meeting that's taking place in Europe. It is important for the U.S. markets and how it's going to impact our numbers.
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: You said it, Kyra. You're absolutely right. You know, this meeting has implications for the entire world. Right now, all 27 European Union leaders are meeting in Europe to try to get their debt issues in order, and they've got quite the top order to fill.
It is likely to cost hundreds of billions of dollars. Now this is their 14th meeting that happened in the past 21 months, but you know what? This one is coming with high hopes. Wall Street is betting that something big can get done today.
It's the reason why we're seeing stocks move higher today. The Dow is up over 100 points. Now here is why we care about Europe getting a handle on its debt issues because if Europe goes into another recession, it could wind up dragging us down, too.
Think about it, we are so interconnected for one on overseas trade. Brookings Institute says $400 billion of our exports go right over to Europe. So if they go down financially, they will not be buying our products.
Secondly, investment, our investment here in the U.S. to take a big hit. U.S. businesses and banks, they are heavily invested in the EU and we have seen how the problems there hurt business and consumer confidence here.
So, yes, Wall Street is watching closely for details of this debt plan. Kyra, we should get word this afternoon of what is going to be happening here -- Kyra.
PHILLIPS: All right. It sounds good, Alison. Thanks. Those European leaders are gathering right now in Brussels. The objective is, well, beefing up their collective currency, the euro, and addressing the region's debt crisis as Alison and I were just talking about.
Zain Verjee is live in London with a look at the headlines behind this proposed bailout. What are they saying, Zain?
ZAIN VERJEE, CNN CORRESPONDENT: Hi, Kyra. It is crunch time for these European leaders and they need to deliver. Let's look at the headlines. The advertisers say this, high stakes poker game in Brussels.
It says one thing is clear that the potential failure of the European economy as a whole stems from the inevitable failure of the weakest links and that is a failure of politics and economics.
The "Guardian" says, time to unleash financial fire power or face single currency breakup. Europe's leaders say they have done everything apart from take the decisive action necessary to prevent a problem. The words make or break talks are much overused, but in this case, they are justified.
And then the "Wall Street Journal" in Europe's headline, Kyra, the Greek debt fallout. There's a guest editorial that says this, it is become fashionable to compare Greece and the swamped euro and the CDs swamped euro crisis to the Lehman Brothers meltdown. Given the true scale of the problem though, it's hard not the worry that Europe's crash and the ripple effects around the globe could even be worse.
What Alison was saying was really critical because what matters to the U.S. is this if they don't make a deal. If there is a breakdown in talks and Europe is driven into a recession, the value of the dollar would go up. And the U.S. exports would become significantly more expensive, and it would really hurt people on Main Street -- Kyra.
PHILLIPS: All right. Zain Verjee out of London. Zain, thanks for that perspective.
Well, a high school chemistry experiment comes to an explosive end. We'll tell you what sent a couple of students to the hospital and the area hazmat team into action.
And NBA stars may miss the season if the lockout goes on, but they may also miss out on playing in the Olympics. We will take a look at the potential impact next.
(COMMERCIAL BREAK)
PHILLIPS: Checking stories cross country now. In Florida, a federal judge has temporarily blocked the governor's controversial plan to drug test welfare applicants.
That move comes after the ACLU filed suit for a single father who objected to the test saying it violates his rights to unreasonable search and seizure.
And in Fayetteville, North Carolina, four high school students recovering after a science experiment unexpectedly exploded outside the school's chemistry lab. The building was evacuated as a precaution.
And police in Albany, Georgia suspect an unsatisfied customer at a Taco Bell drive through. It threw a homemade firebomb at the restaurant. The restaurant's manager says that a man had called to complain about the lack of meat in his Chalupa just prior to that attack.
If this were any other year, any other year, I guess, NBA players would be getting ready to suit up for opening night instead, they are dressing down in t-shirts and playing pickup ball.
The first two weeks of the regular season are gone. Plans to cancel the last two weeks in November schedule are now on hold as players and owners go back to bargaining table.
With the season still in doubt, there also concern about the lockout's effects on the Olympics. NPR sports correspondent, Mike Pesca joining us to talk about this again.
Mike, great to see you. Let's talk to us about the impact on the Olympics here. Explain that.
MIKE PESCA, NPR SPORTS CORRESPONDENT: Well, there is uncertainty, but I wouldn't say that the Olympics or the big NBA stars being on the Olympic team is unlikely at this point. Here's the uncertainty.
The training for the Olympics occurs about a month, a little less than a month after the NBA season ends July 5th or July 6th, and Mike Krzyzewski, the Duke coach who coaches the U.S. national team, says if there is labor or if the season drags on, it could affect the Olympic schedule.
The other thing is that these are big stars we are talking about and when they play on the Olympics teams or when they play for the world basketball championships like Kevin Durant and those great players did two years ago, they are covered by insurance.
But with a lockout, the insurance question looms large if one of these million dollar stars gets hurt, who is going to pay that money. They will be probably able to work it out because you have to remember these stars, all NBA players think of themselves as brands.
And they want to be on the international stage. They feel it will help the endorsements. You know, I am sure they are patriotic. I'm sure they love the international experience, but there is a bit of a selfish motivation for them to play as well.
PHILLIPS: Interesting. You know, we talk about the Olympics now, and you have addressed the insurance issue, because, of course, there's greater risk for injury if they are not in shape and they're not playing.
And if there is no play, there's no insurance, but you bring up the issue of their brand. Do you actually see the players getting dropped from big money deals if they are not seen play playing on a regular basis?
PESCA: Well, the idea is that you can step up to the next level. I think a lot of the NBA fans knew who Kevin Durant was, but after the world games in Turkey, he really became, you know, the new face of the NBA.
And so his marketability went through the roof. All NBA players think they are brands, a few are. There also has been this idea floated around that maybe the players should say, you know, if we don't have a deal, we are not going to be in the Olympics.
Use that as a bargaining chip, but I think that is pretty dangerous because I think that could turn awful lot of fans who would see that as selfish on the part of the players. We can't get our multimillion dollar salaries. Therefore, we're not going to play for our country.
PHILLIPS: All right, final question. If the lockout is going on and the U.S. team coaches decide to go with non-NBA players for summer games, does that put us at a competitive disadvantage and could we possibly discover some new stars?
PESCA: Well, for years, we always won the gold medal playing with college players. Now college players, the best ones are in the pros and or the best 21 year olds. So that would be a little bit of a disadvantage.
But you have to remember, the best international players, most of them play in the NBA too, not all of them. Spain would not have the Gasol brothers. They have Rudy Fernandez and a couple of other guys.
So it would be a little bit of a disadvantage, but it might be fun. We might go into it as an underdog. And if we win a medal then it might be seen as exceeding expectation. There was a time when we thought that was what the Olympics is about. Now it is about crushing Angola. I don't know how that happened.
PHILLIPS: Mike Pesca, it's always great to have you on. Thanks, Mike. I love your stuff on NPR.
PESCA: Thanks.
PHILLIPS: Well, coming up, "Dancing with the Stars" losses its most controversial contestant. Hear what Chaz Bono had to say after he was voted off.
And finally, the cause of the death for Amy Winehouse. The official ruling, next.
(COMMERCIAL BREAK)
PHILLIPS: More than three months after Amy Winehouse died, we finally know why. Let's get the latest from "SHOWBIZ TONIGHT" host A.J. Hammer. What happened, A.J.?
A.J. HAMMER, HOST, HLN's "SHOWBIZ TONIGHT": Well, Kyra, this news is just breaking from London a short time ago, an inquest has ruled that Amy Winehouse did die as a result of alcohol poisoning.
Amy's family released this statement, they say, it is some relief that we finally found out what happened to Amy. The court heard that Amy was battling hard to conquer her problems with alcohol, and it is a source of great pain that she could not win in time.
She started to drink again the week a period of abstinence. A pathologist says that her blood alcohol level was five times the legal limit to drive. So this news, obviously not unexpected, but of course, Kyra, really doesn't make it any less sad to finally know what killed this extraordinarily talented and extremely troubled young woman.
PHILLIPS: It is a shame. All right, Aerosmith juggling its concert schedule now, I understand, after an accident in Steven Tyler's bathroom. You have to explain this one, A.J.
HAMMER: Yes, Aerosmith's lead singer, Steven Tyler is now recovering from a bout of food poisoning and a fall in a hotel bathroom. He was forced to cancel the concert in South America after he reportedly felt so badly that he lost some teeth.
"SHOWBIZ TONIGHT" spoke with his manager last night. Here's what the manager told us. Steven Tyler suffered minor injuries as a result of food poisoning today in Paraguay. He was taken to the hospital where he was treated and released.
Tonight's show has been postponed until tomorrow. Steven would like to sincerely apologize to his fans in Paraguay for the inconvenience and hopes to see them all tomorrow night so our best to the rock and roll icon for a speedy recovery. He keeps on rocking, Kyra.
PHILLIPS: Yes, he does and always making the headline. All right, "Dancing with the Stars" just lost its most controversial contestant, A.J.?
HAMMER: Yes, Chaz Bono has taken his last bow on "Dancing with the Stars," Kyra. He and his partner were eliminated from the show last night, but you know, it was a really good run for Chaz considering not just his lack of dancing experience.
But also, you remember, there was all that early controversy about having a transgendered contestant on the show. Something that in the end, I got to say, I was happy to see fizzled to really a non- controversy.
And that was really the point to Chaz of being on the show. "SHOWBIZ TONIGHT" was right there at the elimination show and when we spoke with Chaz after it was all over, he told us he was very proud of what he accomplished being there. Watch what he told us.
(BEGIN VIDEO CLIP)
CHAZ BONO, VOTED OFF, "DANCING WITH THE STARS": I got farther than I thought I would. I had an amazing time with this woman every day. You know, it is -- this is a life-changing show, doing this show, and I'm so just grateful I did it. I just take away so much.
(END VIDEO CLIP)
HAMMER: OK. Chaz is gone, but the controversy about the judging on the show is still going on. Professional dancer Max tangoed with the judges on the show this week. Chaz's mom, Cher vented on Twitter after Chaz's elimination.
She called the two male judges on the show grumpy and rude, and Chaz has been publicly talking about how he was upset by some of the judge's comments. But one thing that Chaz has been saying that really struck us, Kyra, and I think this is really interesting, he thinks there is a double-standard on the show.
According to Chaz, women on the show who are a little heavy, they get support from the judges. Overweight men get ridiculed like we saw Chaz get this week. And we have been seen that going on, and we are sorry to see Chaz go. For him, however, the headline here for me Nancy Grace is still a part.
PHILLIPS: Of course, she's still going strong. Got everybody voting for her, A.J.?
HAMMER: I do. You know, she insisted I put her number at the top of the of the speed dial for her votes, and I have to vote 12 times every week or I will experience the wrath of Nancy Grace.
PHILLIPS: Exactly. I get the e-mails, too, and I respond. I'm there. I'm with you, Nancy. We know our place that's for sure. Thanks, A.J.
Well, if you want information on everything breaking in the entertainment world, A.J.'s got it every night on HLN at 11:00 p.m. Eastern.
Our "Political Buzz" panel is ready to tell us why Congress has hit a new low when it comes to job approval. Plus, they will weigh in on this new candidate for Congress, a man from Ohio you have probably heard of. That is all coming up.
(COMMERCIAL BREAK)
PHILLIPS: Top stories now.
Two more survivors pulled from the rubble of Turkey's 7.2 earthquake. The woman and teenage boy were trapped for more than 60 hours. At least 461 people died in Sunday's quake.
Hurricane Rina is expected to strengthen as it nears Mexico's tourist hot spots. The storm is already packing a 110-mile-an-hour wind. Both Cancun and Cozumel are under a hurricane warning.
And after weeks of private talks, the House super committee is holding a public committee. The head of the Congressional Budget Office is testifying. The committee has less than a month to come up with a $1.2 trillion deficit reduction plan. OK. "Political Buzz" -- your rapid fire to look at the best political topics of the day. Three questions, 30 seconds on the clock.
Playing today: Democratic strategist Maria Cardona, Sirius XM political talk show host and comedian Pete Dominick, and Republican strategist and columnist for "The Hill" newspaper, Cheri Jacobus.
OK, guys, first question. A new CBS/"New York Times" poll finds just 9 percent of Americans approve of the job that Congress is doing.
Maria, why is that so high?
(LAUGHTER)
MARIA CARDONA, DEMOCRATIC STRATEGIST: That's a good question, Kyra, I'd like to know those 9 percent are. But I also wouldn't advise them to ever admit that they're part of that 9 percent, because they would have something thrown at them.
But, Kyra, you know, in all honesty, it's frustrating. And Americans of all stripes all around the country are completely frustrated that this Congress cannot get anything done. I frankly think and a lot of independents and the Democrats, I think, agree with me that they are frustrated by a Republican Party that has lurched so much to the right that they are not even supporting their own proposals that not too long they supported and that are currently in the president's jobs bill which will create 1.9 million jobs.
The more --
(BUZZER)
PHILLIPS: OK.
CARDONA: They are more focused on making this president lose his job than giving them jobs.
PHILLIPS: Cheri, you'll get an extra two seconds.
CHERI JACOBUS, REPUBLICAN STRATEGIST: Well, look, I think that's about the same number of people who claim to have been abducted by aliens and visited the mother ship. So the 9 percent, you know, it is a strange number.
But, look, the last time that the numbers were exactly the same before the last elections when the Democrats had the Congress and the president was unpopular. Americans sent more Republicans to Congress. I think the same thing. It might be different if we have a popular president. But he is enormously unpopular.
I think what Americans want is more balance in Congress, because there aren't enough Republicans in Congress to stop this president, and we need a Republican Senate.
PHILLIPS: Pete, isn't nine your lucky number?
PETE DOMINICK, COMEDIAN: No, one is, Kyra. I will tell you about why that is later.
Listen, 9 percent, and I don't know what that meant. Well, maybe they are trying to match the approval to the unemployment rate.
You know, listen, this isn't about Democrat or Republican, as much as it is about the system. The reason why people -- I don't understand this, but a lot of the Americans don't approve of Congress because of the system that they work in. They have to raise millions of dollars just to get elected and then they have to do the bidding of the donors who donated the campaign.
We need to change our campaign finance system and maybe -- maybe our politicians start to represent the people that elected them.
PHILLIPS: All right. Rick Perry said that the biggest mistake for him was participating in the debates. Hmm.
(LAUGHTER)
PHILLIPS: What do you think? Why would he say that? It's not a smart move? A smart move? Is he revealing something here? Pete?
DOMINICK: Rick Perry's big mistake is being, Kyra. Rick Perry has questioned himself everyday why he entered this presidential race. It is ridiculous.
This guy -- he makes Sarah Palin look like a Rhodes scholar. One Texas Republican said he is Bush without all the brains.
And this weekend, he just put the nail in the coffin when he dredged up the birther controversy. Birtherism equals racism. This guy is not an intelligent guy. I don't know how he got elected so many times.
But if you look into it, there's a lot of dirty politics. Either that, or Texas Democrats are that bad. I can't figure it out. But he is finished.
JACOBUS: You know, I think he's a lot like Joe Biden. They both just blurt stuff out. I mean, it's completely without guile. He's unpracticed in any art of political deception.
Some people might find that charming. But he sort of blurts out these things that might be said around the breakfast table or around the strategy meeting that he shouldn't. He should be in debates. People expect that.
But in some ways, it's charming. But, you know, if you are his staff, you are going to be having a lot of sleepless nights and drinking a lot of Mylanta. I know you guys in the press love it, but he is a burden. And that can be a problem.
PHILLIPS: Maria?
CARDONA: At least Joe Biden won as vice president along with President Obama, Cheri. So, at least he knows how to win a campaign. Perry's big mistake, I agree we Perry, is actually entering the campaign and, no, his admitting himself into the debates was not a smart move because it again solidifies in Americans' minds that this is somebody who should not be up on the dais competing to be the one who is nominated for a potential presidency.
It's not something that he is ready for. I don't think that he has the fire in the belly to do it. And he's just not ready for prime time.
PHILLIPS: All right. My favorite question of the day, and it is your buzzer beater -- 20 seconds each on this one.
Sam Wurzelbacher, aka, Joe the plumber, is also running for Congress in Ohio. He's also my live guest here in just about 10 minutes. What should my first question be?
Cheri?
JACOBUS: Ask him the same question you would ask any other candidate, why are you running? I think with him, he's got a little bit of a head start. He would be a citizen legislator. He's got a great message, and you know, he got Barack Obama to inadvertently do some truth-telling on the redistribution of wealth.
So I think that he's got a good head start, but treat him like any other candidate and ask him why he is running.
PHILLIPS: Maria?
CARDONA: And I would ask him if he really wants to do this and if he understands what is at stake and what it is going to take, because I think those were not questions that were not asked of Perry, and if they were, then he clearly did not answer them truthfully, and he should also understand that this is not going to be easy. He is not going to have John McCain bringing him into the national spotlight and holding his hand every step of the way.
So, I think those are the key questions for him.
PHILLIPS: OK. Pete, bring us home.
DOMINICK: Well, Kyra, glad to know that you are giving Joe the 16th minute of fame. That should be groundbreaking stuff here.
Listen -- ask him some fundamental questions about government and maybe the three branches. Ask him about his favorite Supreme Court case. Ask him why he's qualified to run for Congress and he can answer those well. Of if he can't -- tell him that I got a stuffed animal stuck in the toilet, and I like to figure how the heck to get that out, because apparently he's a plumber, even though he's not a licensed one.
And I know he's sitting right next to me, and I think it's insult that anybody would vote for this guy. He's a joke, and I know he can hear me and I tell that to his face, too.
PHILLIPS: Oh, boy, and Joe is a lot bigger than you.
DOMINICK: Even though we both have the same haircut.
JACOBUS: You haven't met many members of Congress clearly because they come from all walks of life. So --
PHILLIPS: I think we've just provoked a possibly violent outbreak. This will be occupy Pete Dominick happening in about five seconds.
CARDONA: Occupy Washington.
PHILLIPS: Thank you for the feedback. Thank you, thank you.
CARDONA: Thanks, Kyra.
DOMINICK: Kyra, you could keep me on but the -- you could keep me on with him, but the viewer would have a hard time telling the difference between Joe and mine head.
PHILLIPS: I think he's got a much better haircut than you, Pete.
DOMINICK: How dare you, Kyra?
CARDONA: Ouch.
PHILLIPS: You know I love you.
Taking it to a quick break and then we are talking about the income gap getting bigger. A new report showing that the top 1 percent are getting even richer. We'll have details on how that compares to the middle class.
And a baby's cries can wake the dead.
(VIDEO CLIP PLAYS)
PHILLIPS: And sometimes save the living. We're going to tell you about a family who owes everything to one very realistic doll.
(COMMERCIAL BREAK)
PHILLIPS: All right. Let's check the news cross country now.
A Tennessee family survives a house fire thanks for the daughter's fake baby. The doll was part of a health class assignment rather on parenthood. Well, when her baby started to cry in the middle of the night, the girl woke up and saw smoke. She got everybody out safely, including the baby.
Traffic coming to a screeching halt on an Oklahoma highway after drivers spot money blowing across the road. Dozens of people pulled over, pocketed thousands of bucks and then took off. Nobody has claimed the lost money and nobody has turned any in.
And gassing up the car could load you up with germs. A new study finds that gas pumps are one of germiest things we touch. Public mailbox is a close second by the way. Seventy-one percent of pumps tested were highly contaminated with the bugs that are most likely to make you sick.
Well, Alison Kosik is at the New York Stock Exchange with some news that sure to stir up the "Occupy Wall Street" protest.
New studies showing that income among the top 1 percent of earners is soaring, Alison.
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Yes, this is where the old phrase comes from, the rich are getting richer. The poor get poorer. The wealth gap, Kyra, is big and it's getting even bigger. The Congressional Budget Office came out with a report on how much incomes have grown since 1979 through 2007.
So, that's a big gap of time there. But during that time, what is found was that the top 1 percent of the population, incomes grew 275 percent. But if you look at the middle-class, incomes grew only 40 percent. And then you look at the poorest among us, incomes were up just 18 percent.
And the CBO gives us a few reasons why. For one, executive compensation is high. Bigger financial services industries mean more people are in banking and there are bigger salaries there.
Also, there are these huge salaries in industries including sports and music and entertainment. Also, the wealthier -- they are reaping the rewards of tax benefits like capital gains, many investments are taxed at a lower rate. So, what happens is the rich tend to benefit more from this, because they tend to have more investments -- Kyra.
PHILLIPS: All right. Well, Wall Street also got a new housing report within the past hour. How is it impacting the markets?
KOSIK: Not really impacting the markets much, though it was on the positive side. New home sales, Kyra, jumping 6 percent in September. The focus today is really on Europe and the corporate earnings. There's a lot of optimism that Europe will get a comprehensive debt deal done today. It's the reason why we're seeing the Dow up 57 points, although it is off of the highs of the session.
We're also watching shares of Boeing -- Boeing shares are up more than 5 percent after posting better than expected earnings. It is one of the leaders on the Dow -- Kyra.
PHILLIPS: Alison, thanks. And a month and a half after the contaminated cantaloupes were recalled, the death toll in a listeria outbreak has risen from 25 to 28. And because it can take so long for the symptoms to show up, well, the CDC says it will be a couple more weeks until they know that this thing is totally over. A hundred and thirty-three people across the country have been infected by fruit traced to a Colorado grower. Health officials found unsanitary conditions at the farm's packing plant.
The man best known as Joe the plumber. Now, he is Sam Wurzelbacher for Congress. We are talking to him live in just a few minutes. (BEGIN VIDEO CLIP)
SAM WURZELBACHER, JOE THE PLUMBER: Going forward, I'm not trying to capitalize on being Joe the plumber.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
PHILLIPS: Well, my next guest went from obscurity to the spotlight after this little exchange back in 2008 with then-candidate Barack Obama.
(BEGIN VIDEO CLIP)
WURZELBACHER: My name is Joe Wurzelbacher.
BARACK OBAMA, THEN-PRESIDENTIAL CANDIDATE: Good to see, Joe.
WURZELBACHER: And I'm ready to buy a company that makes $250,000 or $280,000 a year.
OBAMA: All right.
WURZELBACHER: Your new tax plan is going to tax me more, isn't it?
OBAMA: Well, here is what is going to happen --
(END VIDEO CLIP)
PHILLIPS: And after that, Joe the plumber became a household name -- thanks to the McCain campaign, and then came a book and a speaking tour. He got a publicist, even went to the Middle East as a reporter. Now in 2011, he is trying something new, Joe the plumber, aka, Samuel Wurzelbacher, is running for Congress in Ohio as a Republican.
He joins me live now from New York.
So, Sam, as you hit the trail, you're going to be challenged about your credibility. You know that. The fact that you weren't a licensed plumber and you got this nickname Joe the plumber. Are you ready to be grilled?
WURZELBACHER: Absolutely. That whole licensed plumber bit, and you did know I was in the United States Air Force, right?
PHILLIPS: United States Air Force -- no, I did not know that.
WURZELBACHER: Yes, I was a plumber in the United States Air Force. So, it amazes me when people want to bag on me about that.
PHILLIPS: Interesting. When did you serve in the Air Force?
WURZELBACHER: From '92 to '96.
PHILLIPS: Why wouldn't people talk about that you were in the United States Air Force, and I've never heard you talk about that?
WURZELBACHER: Oh, I talked about it. It just seems like the media has their kind of desire to point the story one way or another -- stir the pot, if you will.
PHILLIPS: Interesting. So, let me ask you about this then -- why should people of Ohio and Americans in general take you seriously?
WURZELBACHER: Why shouldn't they take me seriously? Quite frankly, you look at the current representation, you look at the economy, you look "Occupy Wall Street," you look at the Republicans and the Democrats, you know, you are going to trust those people? Come on now.
PHILLIPS: What is the one issue you are most concerned about in Ohio, in particular, the district where you'll be running?
WURZELBACHER: Jobs. It all comes down the jobs. You know, Ohio has lost over -- nearly a quarter million people, and they are not moving down to Florida. They are moving to other places to look for jobs. Ohio is a great place to live, but you can't live there without a job.
So we're going to concentrate on that. We're going to bring back some manufacturing. We're going to push trades, you know, make a great living, and we need some damn good people working the trades.
So, I got some good thoughts and plans to make that come about.
PHILLIPS: Tell me some more about those. Obviously, we've heard a lot about the president's jobs plan. He's been going state to state touting that. Give me some specifics -- what you can say to those out of work in your district, what are you going to do to get them back to work?
WURZELBACHER: Well, some of it comes down to CNC machines. It's technical and trade based as far as putting things out there. The CEO of Cummings Engines said he'd actually put another factory in America hiring another 1,000 employee, but unfortunately, he doesn't have the workforce it.
And so, we need to push some secondary education, some vocational schools, and really talk about that and how great it is as far as being on the trades and working with your hands and getting thing likes that done. So, that's just one part of it.
PHILLIPS: All right. You are going to run as a Republican. The candidates that are out there, the GOP candidates running for president, who do you support?
WURZELBACHER: Right now, I like Herman Cain. I tell you what? He is a man who says what he means, means what he says.
But let's get back to the GOP as far as me running as a Republican. That doesn't encompass who I am. Right now, there is a system in place that means you have to run as Republican or a Democrat, independents don't get voted in. They can't raise the money. They don't have the name recognition.
So, you know, ultimately, I am running as a Republican, but I'm going to represent all Americans, union/non-union, Democrats, Republicans. It's about promoting American and ultimately of promoting jobs in northern Ohio.
PHILLIPS: As you know, I do this segment every hour, the "Political Buzz" and I asked each one of our representatives within that panel, a number of political questions. One, as you know, because you were sitting next to Pete Dominick, who was pretty tough on you.
Let's take a listen to what he had to say and I'll let you respond.
(BEGIN VIDEO CLIP)
DOMINICK: I am glad to know that you are giving Joe his 16th minute of fame. That should be groundbreaking stuff here. Listen, ask him some fundamental questions about government, maybe the three branches. Ask him about his favorite Supreme Court case, ask him why he's qualified to run for Congress. If he can answer those well, or if he can't.
And tell him that I got a stuffed animal stuck in my toilet and I like to figure out how the heck to get that out.
(END VIDEO CLIP)
PHILLIPS: In all fairness, your favorite Supreme Court case, aka, Sam.
WURZELBACHER: I don't have one. But as far as, you know, you got have the judicial, executive and legislative. If he wants to hire me to come fix his toilet, you know what? I'm always about making money and paying my bills. If he is serious about that, hell, I'll do it. But it's going to cost him at least $1,500.
And as far as my qualification, I'm an American for 37 years. That's all the qualification I need.
I'm honest. I'm sincere. And I want to work for the American people. That's what it comes to.
I served them in the military. I want to now serve them in this capacity in Congress, because we need to get people actually going to go to work in Washington and not just get by on the American people.
So, you need to go to JoetoCongressfor2012.com and read what I got to say. If you like it, you know, volunteer or donate, support and getting hardworking and honest Americans back into office.
PHILLIPS: All right. Now, before we go, I got to get it straight, am I going to call you Joe or Sam?
WURZELBACHER: My name is Samuel Joseph Wurzelbacher. It amazes me that that's such a difficult concept to grasp from the American people when we have a tax code that's 6,000 pages and growing, they want to talk about Samuel Joseph Wurzelbacher.
I've gone by my middle name. You know, half of the population of this country go by their middle name. It's not an odd thing, and people have to get over it.
PHILLIPS: We will track how you do, for sure. Appreciate your time today.
WURZELBACHER: Thank you.
PHILLIPS: Hurricane Rina threatening the resort areas of Cancun and Cozumel. And Rob Marciano tracking the strengthening storm. He's next in the NEWSROOM.
And a quick look at the markets, how are we doing? The Dow Industrials up almost 15 points. We are watching your money, too.
(COMMERCIAL BREAK)
PHILLIPS: Stories making news:
Later today, at 12:15 Eastern, on Capitol Hill, John Walsh, host of "America's Most Wanted" joins police and fire officials in calling for an emergency broadband network.
Later in the hour, from Denver, President Obama is expected to lay out his plan to help college grads grappling to pay back their student loans.
And then, later today, at 2:00 p.m. Eastern, People for the Ethical Treatment of Animals is expected to file a suit against SeaWorld, alleging that the water park is enslaving the killer whales that perform there.
(COMMERCIAL BREAK)
PHILLIPS: Well, we found out one thing from the president's appearance on "The Tonight Show," he is apparently not a fan of televised Republican debates.
CNN senior political editor Mark Preston -- so, Mark, what exactly did the president say?
MARK PRESTON, CNN SENIOR POLITICAL EDITOR: Well, Kyra, he is out west over the next couple of days and he appeared on "The Tonight Show" last night with Jay Leno. You know, much of the nation right now is captivated by this Republican presidential race. He says he's not.
In fact, let's listen to what he told Jay last night on "The Tonight Show."
(BEGIN VIDEO CLIP)
JAY LENO, COMEDIAN: Have you been watching the GOP debates?
OBAMA: I'm going to wait until everybody's voted off the island. LENO: Really?
(LAUGHTER)
OBAMA: Once they narrow it down to one or two, I'll start paying attention.
(END VIDEO CLIP)
PRESTON: I don't know, Kyra -- I mean, look at the smile on the face right there. I think it's pretty hard to believe that President Obama is not watching these Republican presidential debates which have really turned into fireworks and we saw it on CNN last week.
PHILLIPS: I was just wondering, does he watch "Survivor"? Is what we were supposed to be reading between the lines there?
PRESTON: A big plug -- a big plug for that reality show.
PHILLIPS: No kidding.
PRESTON: You know, Kyra, another thing -- he said that he quit smoking as well. So, you know, heading into the tough campaign season -- the question is: will he start smoking again? Who knows?
PHILLIPS: I can just imagine how stressful it is. Mark, thanks.
PRESTON: Thanks.
PHILLIPS: I'll tell you someone who is not smoking, T.J. Holmes.
T.J. HOLMES, CNN ANCHOR: I quit drinking last week, too. You know?
KYRA PHILLIPS, CNN ANCHOR: Exactly. He doesn't drink, he doesn't smoke.
HOLMES: No.
PHILLIPS: He told me he was going to take it away about 11:00 Eastern Time.
HOLMES: 1:00 is when I'm done. I will meet you at the bar downstairs.
PHILLIPS: It's happy hour somewhere.
HOLMES: Kyra Phillips, always a pleasure.
PHILLIPS: Good to see you, T.J.
