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Students Rally for Paterno; Penn State to Investigate Abuse Claims; Cain Accuser Wants Others To Go Public; GOP Rivals Call Out Cain; Mississippi's "Personhood" Vote; Ohio Repeal Anti-Union Law; Governor Races in Kentucky, Mississippi; Greek Prime Minister to Resign Today; Italy's Debt Crisis Slams Stocks; European Debt Crisis Slams Wall Street; ESPN: Paterno To Retire; NFL Player Talks About Penn State Case; Cain's Latest Accuser: Karen Kraushaar; Background on Cain Accuser; Students Protest Tuition Fees; Cain Flatly Denies Sexual Harassment; Rapper Heavy D Dies; Director Quits Oscars Gig; Chicken Pox Tainted Lollipops; Trailblazer in Male-Dominated Field

Aired November 09, 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: But, still, hundreds of students gathered outside his home last night to show their support. CNN's Jason Carroll was there. He's joining us live from State College, Pennsylvania.

Jason, there are a number of calls out there for Paterno to step down. What is the latest on his fate?

JASON CARROLL, CNN NATIONAL CORRESPONDENT: Well, lots of, as you said, calls coming not just students, but alumni, as well. Some people here in the community. You hear reports repeatedly that he's going to step down.

One report that came out yesterday said it would be before this weekend's game. Another report coming out saying that it's going to be by the end of the year.

But when you hear from the Paterno camp, at least from late last night, Scott Paterno saying his father has no plans to resign in the immediate future, that there have been no discussions.

When all of those folks came out to the Paterno home last night, gathering in support, they were shouting Joe, Joe, Joe. We want you to listen to what Joe Paterno had to say to them.

(BEGIN VIDEO CLIP)

JOE PATERNO, PENN STATE COACH: My wife and I, we have 17 grand kids from 16 to 3 and we pray for them every night. And we're going to start praying for those kids that got involved with some of the problems that we talked about. They don't deserve it. We owe it to them to say a prayer for them.

(END VIDEO CLIP)

CARROLL: Once again, Kyra, yesterday we heard a report that Joe Paterno would resign before this weekend. His son, Scott, says not true. Now we hear another report saying that Paterno will resign possibly by the end of the year.

The point is that the push is there for this man to step down. We'll just have to wait and see what happens within the next few days -- Kyra.

PHILLIPS: What about the board of trustees?

CARROLL: The Board of Trustees has really taken this investigation over. They have formed a committee. And, on Friday, they are going to be naming people to this committee to investigate all of these allegations of sexual abuse and how it was handled here at the university and that they're going to end up making recommendations.

In fact they said in a statement, they said, quote, "We hear those of you who feel betrayed. And we want to assure all of you that the board will take swift, decisive action."

Also, today at noon, there's going to be a protest we're hearing in the area possibly here on campus where they'll be protesting the way that the university has handled these allegations of sexual assault -- Kyra.

PHILLIPS: Jason Carroll live there at Penn State for us. Jason, thanks.

Well, Herman Cain, angry, defiant and leaving no wiggle room in denying that he sexually harassed women.

(BEGIN VIDEO CLIP)

HERMAN CAIN (R), PRESIDENTIAL CANDIDATE: With respect to the most recent accusation, I have never acted inappropriately with anyone, period.

(END VIDEO CLIP)

PHILLIPS: And, today, he faces his Republican rivals in a presidential debate, but it's possible he could soon face an even tougher crowd, all of his accusers at a single news conference.

That's actually the idea being pitched by Karen Kraushaar, one of the women who's accused him of sexual harassment in the 1990s. Hours after a news organization revealed her name. She's now ready to go before the cameras with women who have similar allegations against Cain.

Joe Johns is in Washington. So Joe, on Monday night, Herman Cain was on late night TV, as we were talking about, laughing, joking around, basically brushing off the accusations.

But it was all business yesterday. So what do you take from that? Is he taking this scandal more seriously?

JOE JOHNS, CNN SENIOR CORRESPONDENT: Well, it's certainly clear that he's been taking it seriously. And it's very interesting to see the contrast, quite frankly, between that and where he is now.

And there will be even more contrast when he gets to this debate in Michigan when they start talking about economy and jobs. And you would expect that somewhere in there, people are going to be feeling questions about what's happening with him in his personal life.

You get this feeling. Of course, he's operating in a parallel universe, in some ways. The question is whether it's actually Herman Cain or in fact, his accusers. He has issued the blink of denial of all the allegations.

Categorically denying he's never acted inappropriately with anyone, period, he says. So be it up to him to defend that statement. As far as the plans going forward, Cain says he's not going to drop out of the race.

He blamed Democrats for putting out what he called a troubled woman to make what he called false allegations against him. He said he didn't even know the woman apparently, speaking of Sharon Bialek who's represented by Gloria Allred, who's given a lot of money to Democratic candidates.

Allred denies being manipulated by Democrats. Cain also said he would take a lie detector test. That's interesting, though, he quickly said he would not do it unless he had good reason to. Not clear, Kyra, what he considers a good reason.

PHILLIPS: All right. Joe Johns, thanks so much. In just about 10 minutes from now, Cain's accuser, Karen Kraushaar through the eyes of a co-worker. CNN contributor, Maria Cardona was her boss right after Herman Cain. We're going to have her on her both professionally and personally.

Well, Cain's Republican rivals initially ignored the sexual harassment claims. But now the scandal is well into its second week. The potentially damaging topic is creeping into their comments more and more. Just take a listen.

(BEGIN VIDEO CLIP)

MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: I just think that it's important to recognize that a number of women have come forward with concerns. This woman's charges are particularly disturbing and they're serious.

RICK SANTORUM (R), PRESIDENTIAL CANDIDATE: Obviously, they're -- they are very troubling. But these are things, I mean, they're allegations. Herman has his opportunity to tell his side of the story and the American public can make a decision.

NEWT GINGRICH (R), PRESIDENTIAL CANDIDATE: Clearly, Herman Cain has to answer the charges. He has to explain what happened. He has to do so in a way that's convincing. And I think that's unavoidable. He both owes her that, but he also owes the American people that.

(END VIDEO CLIP)

PHILLIPS: Well, it's not clear whether any of Cain's Republican rivals will bring up the sexual harassment scandal in tonight's televised debate. Stay tuned.

For millions of Americans, the elections results are in. Two Republican-backed measures go down in flames. One, the controversial parenthood measure in Mississippi. It would have banned all abortions in the state, even in cases of rape or incest.

Senior political editor, Mark Preston, is in Washington. So, Mark, let's talk about how significant the defeat is.

MARK PRESTON, CNN SENIOR POLITICAL EDITOR: Yes, huge, Kyra. You know, this is a big win for abortion rights supporters after the Mississippi voters rejected this ballot initiative Tuesday that would have defined the beginning of life at fertilization.

Look, if this ballot initiative had passed, it would have given anti-abortion rights supporters -- in their battle to try and outlaw abortion in the United States.

Another big loss for conservatives up in Ohio, Governor John Kasich and Republicans had put into place a law that would have curtailed collective bargaining rights for public sector employees.

However, that was overturned by the voters last night. This is a huge battle especially as we head into the 2012 elections. The winners were the unions in the Democratic Party.

Bottom line is Ohio is going to be very, very important, Kyra, next year in the presidential election, Democrats think this was an early win for them -- Kyra.

PHILLIPS: It was a busy off year election. Tell us about the Mississippi governor's race and the recall vote in Arizona.

PRESTON: Sure and also, the Kentucky governor's race. Let's start in Kentucky. Democrat Steve Beshear won a second term as governor. Down in Mississippi, Republican Phil Bryant will succeed Governor Hailey Barber who was term limited.

And then out in Arizona, State Senator Russell Pearce who has gained national fame for being the author of Arizona's tough illegal immigration law lost to a fellow Republican in a recall election. So even though this was an off year and we are so focused, Kyra, on 2012, a big election night last night -- Kyra.

PHILLIPS: Yes, it was. You're following all of it for us. Mark, thanks.

Well, this morning, a couple of big developments in Europe are impacting stock markets here at home. CNN has learned that Greece's embattled prime minister will hand in his resignation to the country's president sometime today. And the deepening debt crisis in Italy is rattling investors around the world. Alison Kosik is at the New York Stock Exchange. Stocks are really taking a beating, Alison.

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: They are and just to give you an explanation of what is spooking stuff. It's the Italian bond market that's spooking stuff. I want to give you a comparison because it's the best way to explain this.

So Italy's 10-year bond yield right now is above 7 percent. A comparison here, look at U.S. and German bonds, they're at 2 percent. So you see how Italian bonds are at record highs. And what this show essentially shows is that the crisis there is getting worst. It's not getting better.

Because there's a huge question mark on whether Italy can pay its bills, can it pay its debt? Now, for any government to go ahead and try to pay its debt, to pay its bills, these governments sell bonds to investors to raise money.

And the higher yields that you're seeing in Italy mean that there's more risk because, you know, who wants to invest in a country that's drowning in debt, that may or may not be able to pay its bills.

Also the higher yields mean Italy also has to pay more interest in money that it tries to borrow. So it's making its debt problem even worst because Italy is going to have harder time borrowing money.

So you see all of this fear playing into the market. That is the reason why we're seeing the Dow plunge 276 points right now -- Kyra.

PHILLIPS: All right, so is Italy going to need a bailout?

KOSIK: Well, you know what, in Greece, when their bonds hit 7 percent, they had to get a bailout. The same thing happened for Ireland. The same thing happened for Portugal, but not such an easy thing with Italy.

Because what Italy is facing is a much bigger bailout than those other countries needed because Italy's debt load is even bigger. Also, at some point, the money train is going to stop.

Germany and France, they wrote a big fat check for a portion of those previous bailouts to those other countries. At this point, they're fed up to say the least.

The good news is the Italian parliaments can be voting on austerity measures as soon as this month. But if you ask, the market really wants to see this vote happen as of yesterday -- Kyra.

PHILLIPS: All right, Alison Kosik at the New York Stock Exchange. Dow Industrial is down 276 points. We're watching the numbers and of course, the global debt crisis. Alison, thanks.

Coming up, she's the second woman to go public in the Herman Cain scandal. CNN contributor, Maria Cardona, knows her well. In fact, Maria was her boss right after Herman Cain. We'll talk about it next.

(COMMERCIAL BREAK)

PHILLIPS: All right. Apparently, ABC News and ESPN reporting that legendary Penn State football coach Joe Paterno will step down at the end of the season. The word is retire. That is what ESPN is saying. Also, ABC News, going forward with it, as well. Joe Paterno set to retire at the end of the season.

This, of course, coming after these allegations of Jerry Sandusky molesting young boys. You know, Penn State football players who played for assistant coach Jerry Sandusky are pretty shocked and saddened by these child rape charges against Sandusky.

Earlier this morning, I got a chance to speak exclusively with Brian Scott. He's a former Penn State star. He's now playing with the Buffalo Bills. And we actually talked about Jerry Sandusky's son, John, who Brian roomed with.

(BEGIN VIDEOTAPE)

PHILLIPS: You know, Brian, you said you haven't had a chance to actually talk to John. But if you could, if he sees this interview, what do you want to say to him?

BRYAN SCOTT, BUFFALO BILLS (via telephone): I just want to let him know that, John, I know you're going through a really, really tough time, man. And, you know, I'm supporting you from a distance. I know it's not easy by any means, by any means.

PHILLIPS: Brian, how about these young boys that Sandusky allegedly preyed on and molested. What do you say to them?

SCOTT: My heart it bleeds for them, for the families. You know, words -- you can't put into words probably what they're going through not just now, but back then and having to stay quiet for so long. So my thoughts and prayers are with all of the victims.

PHILLIPS: You know, Joe Paterno, too. What should happen to him? If these allegations of a cover up are true, what should happen to Joe Paterno?

SCOTT: Man, and this is where I guess it gets really dicey because I don't know what was told to Coach Paterno. And I started to hear rumors and comments that, he cared too much about winning and the football program than he did about the lives of these boys.

But Coach Paterno, that's the same coach that I've seen sit down players because their grades weren't high enough, to his standards. Not to NCAA standards, but to his standards.

So I just find it really hard to believe that Coach Paterno would turn a cheek, you know, against allegations like this and not say anything. PHILLIPS: And, final question, Brian, if, indeed, all of this proves true, that Sandusky did molest these boys, what do you think should happen to him?

SCOTT: You know, he's going to have to pay the consequences. There's no doubt about it. You know, what those consequences are, you know, I'm sure the legal system will decide. But he definitely has to pay the consequences.

PHILLIPS: Any final thoughts as we wrap up our interview, Brian?

SCOTT: No, I mean, this is just, you know, it's just a sad day. I'm saddened for, you know, these stories developing. I'm saddened for the families that are going through this.

I'm saddened for the Sandusky family because I know, you know, that the man of your family is now accused of these allegations. I'm saddened for the Penn State family.

But we'll get through this. I think the Penn State family will continue to support each other and rally behind each other and we'll get through it.

PHILLIPS: Bryan Scott, sure appreciate your time today.

SCOTT: Thank you very much.

PHILLIPS: You bet.

(END VIDEOTAPE)

PHILLIPS: Straight ahead, thousands of angry students marching through the streets of London. Police in riot gear watching their every move. Students and their complaints right after the break.

(COMMERCIAL BREAK)

PHILLIPS: Well, she had hoped to stay anonymous, but Karen Kraushaar's name and face are out there now, the second woman to publicly accuse Herman Cain of sexual harassment.

Everybody wants to know more about her. What kind of person she is? Well, it just so happens that one of our own, CNN contributor, Maria Cardona, hired her right after Kraushaar worked for Herman Cain.

Maria, you know, tell us about your experience with her, her work ethic, her credibility factor?

MARIA CARDONA, CNN CONTRIBUTOR: Sure, Kyra, thank you. So when I hired Karen, I was communications director at the INS, at the end of the Clinton administration the last two years.

At the time we were going through the firestorm that was Gonzalez. So everyone on our team was going through a very tense time. I needed somebody that I could send down to Miami to be the public face of INS, to talk about this difficult situation.

Out of everybody on my team, I chose Karen because from the very moment that she walked into my office as a new employee, she exhibited nothing, but the utmost of professionalism. She is a classy woman. She's a private woman. She's incredibly hard working. She was the consummate team player.

So, to me, all of those factors say that this was a woman that I needed to send down to Miami under these very difficult circumstances. As a former employer of Karen's, I have to say, to me, her credibility is beyond reproach.

PHILLIPS: And she said to you, thank you so much for hiring me away from my other job. But, at that point, she didn't say anything to you about Herman Cain, correct, until this came out?

CARDONA: That's exactly right, Kyra. At the time, she -- I always said how grateful she was for me hiring her at INS. She said, Maria, you didn't know me from Adam and you took a chance on me. She always said how grateful it was to be working for a woman and the commissioner at the time that the INS was a woman.

The deputy commissioner was a woman. The attorney general, as you remember, Janet Reno was a woman. She always talked about how amazing it was to be working with all of these incredibly strong women and how great that made her feel.

So when I found out that she was one of the accusers and I reached out to her and we have been talking ever since, she has since told me, Maria, now you know why I was so incredibly grateful to you for hiring me.

And for showing me what a safe working environment could be like. And she said to me, you saved me from that monster. And, clearly, she was talking about the horrendous experience that she went through at the National Restaurant Association with Mr. Cain.

PHILLIPS: And you clarified this, this morning, but for our viewers just tuning in, there's this other complaint that apparently she filed. But it didn't have anything to do with sexual harassment.

Can you just clarify what you know about that? And can you explain to us for those saying, OK, is this woman someone who just files complaints in moments of difficulty, or is this somebody that's strong willed and stands up for what is right.

CARDONA: I think you've hit the nail on the head with the latter because I have since talked to her about that misunderstanding. And what happened was when I was at the INS, when I was director of communications. There was an employee that worked in our office who had chronic back problems.

And because she was such a good employee, I let her work from home. When I left, my understanding is that Karen unfortunately got into a pretty bad car wreck and had some issues. And she asked for the same courtesy and the same privilege that I had previously extended to one of my employees.

I had since then left. My understanding is that that privilege was not granted to her so she filed a complaint. But she got pushed back and then it was dropped. So that is the extent in terms of that specific complaint.

And, yes, Karen is not somebody that files frivolous complaints. She is a strong-willed woman. She knows what a professional environment needs to be like for a woman and she will stand up for herself.

And that is why I am now standing up for her just to tell as much as I can about Karen, the woman, Karen the employee in terms of her credibility, which, in my eye, is again, beyond reproach.

PHILLIPS: Maria Cardona, and you're one of our own. Thank you so much.

CARDONA: Thanks, Kyra.

PHILLIPS: You bet.

Well, thousands of students storming the streets in London. They say they've had it with tuition hikes. So once again, they've taken to the streets. If this is anything like the last round of protests, the police are definitely bracing for the worst.

Atika Shubert is there in London for us. So Atika, we talked last time these protests were taking place. We saw how violent they become. Now, they are moving their way, working their way toward the heart of the "Occupy" movement. Have they reached this other group of protesters yet?

ATIKA SHUBERT, CNN CORRESPONDENT: That's right. This is the heart of the financial industry. As you can see, the bulk of the protesters already arriving here, moving beyond me largely without incident.

It has been peaceful, so far. One or two minor scuffles. We saw someone briefly try to break the barricade here, but, really, for the most part, very peaceful. It's an interesting scene because I'm actually right in front of the London Stock Exchange.

And a number of financial sector workers are actually in these glass-fronted offices looking down on the protest here. We've seen a few protesters making some rude gestures. But, otherwise, other than that, it really seems to be fairly well organized.

Making the point with the message, as you can see, education, not business. This protest is extensively about against government cuts and about stopping the tripling of education fees.

But it's also about solidarity with the "Occupy" movement, generally, an expression of that widespread, public anger with how the economic crisis is being handled.

PHILLIPS: Atika Shubert, we'll follow the live protest for sure, appreciate it.

Coming up, George Washington, Thomas Jefferson, Theodore Roosevelt and Abraham Lincoln, well, their faces carved into Mount Rushmore. Well, the presidential candidates speak out on who deserves to be added. We'll ask our political panel to weigh in.

(COMMERCIAL BREAK)

PHILLIPS: Checking "Top Stories" now, a year-long investigation finds serious misconduct by mortuary staff at Dover Air Force Base in Delaware. Somehow, the remains of several U.S. troops killed in action were mishandled. Even went missing.

And a new report on Iran's nuclear program that sparked criticisms from France, Israel and China. The paper revealed more evidence of military weapons work. And Iran's President Mahmoud Ahmadinejad calls the findings fabricated.

And everybody relax. We all survived that fly-by, by the huge asteroid, the thousand-foot space rock whizzed safely by earth giving NASA scientists a rare close up.

All right, "Political Buzz"; your rapid-fire look at the best political topics on the day. Three questions, 30 seconds on the clock. And playing today: CNN contributor, Maria Cardona; Pete Dominick, Sirius XM political talk show host and comedian; and Chris Metzler, professor at Georgetown University.

Guys, in a live news conference yesterday, Herman Cain flatly denying all allegations of sexual harassment -- here it is.

(BEGIN VIDEO CLIP)

HERMAN CAIN (R), PRESIDENTIAL CANDIDATE: I have never acted inappropriately with anyone, period.

(END VIDEO CLIP)

PHILLIPS: No jokes, no laughs. Do you believe him? Why or why not, Maria?

MARIA CARDONA, CNN CONTRIBUTOR: I think we all know the answer to that, Kyra. I've been very public about standing up for one of the accusers who used to work for me. I do not believe Mr. Cain.

But, that aside, even if I did not know one of the women who is accusing him, you really have to question and it strains the limits of credibility for him to flatly deny that nothing went on after four women have come out independently of one another to talk about these kinds of accusations. Herman Cain is not living in reality. And he might be in his own little bubble, but it's not going to work for him anymore.

PHILLIPS: Chris?

CHRIS METZLER, PROFESSOR, GEORGETOWN UNIVERSITY: No I absolutely don't believe him for three reasons. Reason number one, any time someone alleges that there is a vast conspiracy, like Hillary Clinton alleged a vast right-wing conspiracy, now he a vast left-wing conspiracy, not credible.

Secondly, let's understand how sexual harassment works. I've investigated hundreds of these claims for organizations. Sexual harassment does not occur in public. The harasser does it in private.

And as it relates to the third reason, he keeps changing his story. Which is it, dude?

PHILLIPS: Pete?

PETE DOMINICK, SIRIUS XM: You know I believed Bill Clinton when he said I did not have sexual relations with that woman. I don't believe Anthony Weiner. No, I don't believe Herman Cain.

But there's a more important point here and I think we all agree and are trying to make this. Our society is infected with thinking that women who come forward and accuse men or men who come forward -- but certainly women of sexual harassment or rape, our society is infected with not believing them; that they are doing that for some kind of financial gain.

I have two daughters. That's wrong. And we need to change that about our society.

PHILLIPS: You know, you mentioned Bill Clinton. He and Jon Stewart talked about Herman Cain last night.

(BEGIN VIDEO CLIP)

BILL CLINTON, FORMER PRESIDENT OF THE UNITED STATES: I don't know if you saw the news story today; 49 million Americans living below the poverty line.

JON STEWART, TALK SHOW HOST: Oh I thought you were going to say 49 million Americans accused Herman Cain. OK so I got, we got to living below the poverty line. Go ahead. I didn't know where you were going.

(END VIDEO CLIP)

PHILLIPS: There are some other questions we would have liked to hear Jon Stewart ask him as well on that note. But do you think that even more women, guys, are going to come forward? Chris?

METZLER: Yes, absolutely. I think that more women in fact are going to come forward. The interesting thing for me, here, is rather than talk about the facts and talk about what happened, he chooses to attack the women.

So if, in fact, what he's saying is true, why doesn't he file a defamation suit against the women? Why? Because he's afraid that he's going to be hauled into court to explain what actually occurred. Yes, more women are going to come forth and he foreshadowed that in his press conference yesterday by indicating yes there'll be others not because I did anything, just because they are.

CARDONA: Chris is exactly right. I thought that was the most bizarre moment yesterday of many bizarre moments in his press conference where he actually told people to be ready for other women to come out to accuse him of something. And, by the way, they, too, will be lying because he's done absolutely nothing inappropriate.

Again, it really limits -- it strains the limits of credibility. He is asking voters to trust him with the highest, most sacred oath of office. He needs to do what he can to clear his name. And he is not doing that right now. And I think he's going to have to face the music sooner or later.

PHILLIPS: Pete?

DOMINICK: I don't know if more women will come forward, but, Kyra, I hope not. Because it means more women have been sexually harassed. And that's the sad thing.

But I think in that clip that we saw from the "Daily Show", Bill Clinton a former president of the United States has pointed out that 49 million Americans are living under poverty.

And I know Jon Stewart and I would venture a guess that what Jon is doing with that joke is -- is criticizing us in the media who aren't more focused on jobs and those 49 million people living in poverty and too focused on people like Herman Cain. While this is an important issue I think that's even more important.

PHILLIPS: All right, guys, your buzzer-beater, 20 seconds each on this one. Republican candidates were asked about additional faces carved into Mount Rushmore. Well, Ronald Reagan was the popular choice. I'm curious, who would you guys pick?

Maria?

CARDONA: It's interesting that they chose Ronald Reagan when I think if he was in the party today he would be chased out because he would be too liberal. He raised taxes 11 times and he actually did tax the rich. So that's interesting.

I would choose FDR. You know, Social Security, the New Deal, very popular wartime president and got us out of the Great Depression. My husband thinks that when you go to heaven FDR is there with his outstretched hands welcoming you.

PHILLIPS: Oh Chris?

METZLER: Well, actually I'm going to do something that's very anti-conservative here and I'm actually going to choose JFK. And I think, if you look at his famous inauguration speech, "Ask not what the country can do for you, but what you can do for the country" is really what we need now. And, by the way, he kept us out of, oh, I don't know, at least four wars.

PHILLIPS: All right, we've got FDR, JFK. Pete?

DOMINICK: I'm going to maintain my serious tone here. Sorry, Kyra, I think that we cannot put another white man on Mount Rushmore. I would much rather be someone who looks like one of the two people on my panel with me. I tweeted this out earlier. Who would you put on Mount Rushmore? I got about 15 to 20 answers, 90 percent of them were Martin Luther King Jr. And I think it would have to be a black American, a woman or maybe perhaps a Native American.

PHILLIPS: Oh Pete we're seeing this --

METZLER: What about Margaret Thatcher?

PHILLIPS: -- the softer side of Pete. Wait a minute. Did Chris just say Margaret Thatcher?

CARDONA: I think it should be Pete.

DOMINICK: It's got to be an American. It's got to be an American.

CARDONA: I think, Kyra, I think it should be Pete. Pete's face should go on Mount Rushmore.

PHILLIPS: And for what he just said. I second that.

CARDONA: Yes.

DOMINICK: It would be easy. It would be very easy. There's not a lot of symmetry.

PHILLIPS: We would have to carve the hair exactly.

DOMINICK: There's not a lot of symmetry.

CARDONA: Right.

PHILLIPS: I love all three of you. Bye, guys.

METZLER: Thanks.

CARDONA: Thanks Kyra.

DOMINICK: Thanks Kyra.

PHILLIPS: All right. Stocks around the world selling off as political and economic turmoil in Europe take center stage. We've been talking about it all morning with Alison Kosik.

So, how are things looking here in the U.S.? Still not great?

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Things are looking ugly, ugly on Wall Street. The Dow plunging now 310 points; you know it fell 200 points in just the first few minutes of trading. So you see how it's really picking up steam.

And what you have here are stock investors watching the bond markets in Italy because the Italian yield, the Italian bond yield is above seven percent. That's a record high. It's a show -- it's a sign that -- that Italy is essentially in a financial crisis.

It shows there's little confidence; that no one wants to loan money to Italy because it's a big question mark whether or not Italy can pay its bills at this point.

You go ahead and compare it to other countries, their bond yields top -- when their bond yields topped seven percent and they needed a bail out. I'm talking about Greece, Ireland and Portugal. So now the big worry is -- is that Italy may need a bailout, too. So, all of these uncertainties are what's weighing on the markets and causing the big sell off today -- Kyra.

PHILLIPS: All right, Alison, thanks.

Well they are afraid of vaccines but looking for illness. Why some parents are exposing their kids to chickenpox with lollipops, just ahead.

And next some insensitive remarks force one of Hollywood's most successful directors to quit his job with the Oscars. Find out what he said in "Showbiz Headlines" next.

(COMMERCIAL BREAK)

PHILLIPS: One of hip hop's most popular artists of the '90s died yesterday. You knew him as Heavy D.

As you may remember, this is one of Dwight Errington Myers' biggest hits, "Now that We Found Love".

Let's bring in "SHOWBIZ TONIGHT's" A.J. Hammer for some details on what happened. What do you know A.J.?

A.J. HAMMER, HLN HOST, "SHOWBIZ TONIGHT": Well, Kyra, Heavy D collapsed at his home in Beverly Hills on Tuesday morning and he died a short time later at the Los Angeles Hospital at the age of 44.

They haven't determined the cause of death just yet. But so many people are really in shock this morning, fans and artists alike particularly because Heavy D has been working a new album and making a whole lot of public appearances recently. He just performed at the Michael Jackson Tribute Concert and the BET awards.

Heavy D's career began back in 1987 with his group "Heavy D and the Boys". He called himself "the overweight lover". And he had hits with The Boys like "The Overweight Lover is in the House" and "Got me Waiting" as well as that song we just heard, the remake of the (INAUDIBLE) we're playing right now.

He recorded songs with Janet and Michael Jackson. And he was really known as a good guy with a sweet sense of fun. His Twitter page slogan was "I have relentless optimism". Later in his career, Kyra, he shifted away from music. He started getting into acting, did roles in a variety of movies and TV shows.

In fact he's in the new film "Tower Heist" which, of course stars Eddie Murphy and it's directed by Brett Ratner, who himself has landed in a whole bunch of trouble recently.

Kyra: Yes. What's the deal with that? Some comments forcing him to quit his job with the Oscars?

HAMMER: Big foot in mouth situation here. Brett Ratner used a gay slur while he's promoting "Tower Heist". Brett knows he made a huge mistake. It's very clear. He did release an open letter of apology to everybody over what happened.

I want to read to you just a portion of his letter, very poignant. He says "Having love in your heart doesn't count for much if what comes out of your mouth is ugly and bigoted. With this in mind, and to all those who understandably feel apologies are not enough, please note that I will be taking real action over the coming weeks and months in an effort to do everything I can, both professionally and personally, to help stamp out the thoughtless bigotry I've so foolishly perpetuated."

Part of the action that he's taking Kyra, yes, he has resigned as the producer of this year's Oscar telecast. This is really stunning. Not entirely unexpected but this was a big deal for the Oscars bringing in Brett Ratner to do the show this year. It's sending the show's producers, by the way, into a frenzy to find a replacement.

And there's no word, Kyra, on what this might do to Ratner's hand-picked host, Eddie Murphy. You know Eddie's tied down with this thing because Brett was producing it. So we'll have to wait and see what happens with that, if anything.

Kyra: We'll follow up. A.J., thanks.

If you want any information on everything breaking in the entertainment world, A.J.'s got it. Every night "SHOWBIZ TONIGHT" at 11:00 p.m. on HLN.

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PHILLIPS: This just in. We got some pretty dramatic pictures out of Phoenix. Interstate-10 is shut down after two tanker trucks collided and caught fire. So far, there are only reports of one injury. But we're going to continue to monitor this story and bring you the latest. Thanks to our affiliate there, KNXV, for bringing us those live pictures.

All right. You can buy a lot of things on the Internet these days, including chickenpox-infected lollipops but CNN's senior medical correspondent Elizabeth Cohen advices why buyers should beware. So what exactly is going on? ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: This is so crazy I can't even -- I can't even begin to tell you. But basically this is what's happening -- or was happening, I should say. It's that there were Facebook sites where parents would go and would be seeking out lollipops that an infected kid, a kid with chicken pox had licked. And then that parent would put it in the mail for the other parent so that that kid, the healthy kid, would get chickenpox via the lollipop, rather than have to get the vaccine.

And I want to -- let's give you an example. This is no longer up on Facebook. But it used today be there. "Fresh batch of pox in Nashville, Tennessee. Shipping of suckers, spit and qtips, available tomorrow, $50 via Paypal. Not only is this illegal, but we're also told that you probably wouldn't get chickenpox from these things because you inhale chickenpox. You get it that way. You usually don't ingest it.

PHILLIPS: All right. So then is getting this disease safer than the vaccination?

COHEN: That is what the parents think. These parents seem to think that they'd rather have their kid get the disease than the vaccine. But doctors tell us that that is really, really hazardous to a child. I mean, chickenpox can kill a child, not to mention that it's incredibly unpleasant and the vaccine is very safe.

So why would you want your kid to have a dangerous disease that could kill them when they could just get the vaccine. None of it makes any sense.

PHILLIPS: All right. That is a pretty bizarre story. I don't understand why you would even want to take that type of risk through something that could be in the mail.

COHEN: Exactly. And why would you want to put another kid's spit into your kid's mouth?

PHILLIPS: Yes.

COHEN: I mean who knows what else that kid has?

Well, it was a talker.

PHILLIPS: Glad you cleared it up. Thanks Elizabeth.

Still ahead, we're going to introduce you to one woman who's making inroads in the male-dominated field of high-technology.

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PHILLIPS: Well, in today's "Black in America", CNN's Soledad O'Brien Introduces us to an African-American woman who is a success in the high-tech world.

(BEGIN VIDEOTAPE) SOLEDAD O'BRIEN, CNN SPECIAL CORRESPONDENT (voice-over): Jacqui Beauchamp is the founder, CEO and Chairwoman of the digital media of the company Nerjyzed Entertainment.

TERRY JONES, REGIONAL INNOVATION ORGANIZATION: She's an entrepreneur starting up a video gaming company. And being a woman and African-American, she was trailblazing many paths and doing so from right here in Baton Rouge, Louisiana.

O'BRIEN: Born and raised there, she climbed the corporate ladder.

JACQUI BEAUCHAMP, FOUNDER, CHAIRWOMAN, NERJYZED ENTERTAINMENT: There's not a lot of diversity not just in the -- the executive ranks. In the industry and you know, there were times as an African-American female I was truly the only African-American female in -- in the room.

O'BRIEN: Then left that loneliness to follow her heart.

BEAUCHAMP: I'm an electrical engineer by degree, and so, technology has always been at the heart and soul of -- of who I am. But animation and multi-media is my passion.

As a kid growing up watching Fat Albert and the Cosby kids, I'm seeing something that, you know, Mr. Cosby created and said, one day, I want to own a company that knows how to do that.

O'BRIEN: And now she does.

BEAUCHAMP: The biggest success so far has been the release and launch and shipment of our first console the video game, which is the Black College Football video game experience.

What we constantly kept hearing and seeing in the industry were, you know, not enough content that reflects the urban character and those that were there, they were not portrayed in a very positive -- in a positive light.

So our -- our intent was to provide some different type of content into the market segment.

O'BRIEN: Up next, a documentary and then --

BEAUCHAMP: A dance-based, music-based video game on X-Box 360 utilizing Kinect, PlayStation 3, as well as WII. It is not just for the African-American consumer to only enjoy and experience.

O'BRIEN: Jacqui Beauchamp concedes it's an uphill battle and embraces it.

BEAUCHAMP: I'm an African-American female and every day I know that I've got to get people to see me, to see me and not that I'm an African-American female.

O'BRIEN: For "In America" Soledad O'Brien, CNN, reporting.

(END VIDEOTAPE)

PHILLIPS: You can watch Soledad O'Brien's "Black in America" special, Sunday night, 8:00 p.m. Eastern, right here on CNN.

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PHILLIPS: All right. All eyes on the GOP debate tonight and Herman Cain, Joe Johns, in the hot seat; what can we expect?

JOE JOHNS, CNN CORRESPONDENT: Well, you know, you can't ignore all the stuff that's swirling around him. And there could always be some attention paid to Cain's defense because it's in the headlines. But what's interesting here is that Herman Cain's issue has been taking such center stage. Almost all of the republicans I've talked to say they're itching to get back to the issues like jobs, the economy.

Of course they want to unseat President Obama. And these debates really try to touch on the issues that voters care about most. Frankly, a lot of Republicans frustrated with the amount of attention paid to Herman Cain and they'd certainly like to get back to these things in a state like Michigan, which has had so many economic problems -- Kyra.

PHILLIPS: All right. We'll have a little fun here. Republican candidates were asked, ok. Who would you add to Mount Rushmore? Pretty much everybody agreed on Ronald Reagan. But you have some other intriguing answers, I understand.

JOHNS: Right. Yes, yes. I mean provocative question, who should be the next president on Mount Rushmore. People are started thinking about it because Rushmore's 70th birthday is right around the end of October that just passed.

Also a fun political question, political season -- now, ok, for reminders. You've got George Washington, Thomas Jefferson, Theodore Roosevelt, Abraham Lincoln. And if you ask a bunch of conservative Republicans yes, they're going to say I'd like to see Ronald Reagan up there.

ABC News asked this question and Michele Bachman gave some answers that stood out. She said yes, she'd do Reagan but also James Garfield and then she said Calvin Coolidge; Garfield because he spent multiple terms in the House of Representatives before going to the White House. Makes sense since she's sort of trying to do the same thing.

And then there's the issue of Garfield having only had a presidency that lasted about 200 days or so. Coolidge is quite a choice because, yes, he was president during the roaring '20s. A lot of people see him as handling the economy well, but his policies also led to the Great Depression. So, interesting stuff, Michele Bachmann's take.

PHILLIPS: Yes, and bottom line, will we ever see something etched in to this? You know? Or is it just one of those conversation pieces, Joe?

JOHNS: People have proposed it. I mean people have proposed it.

PHILLIPS: You never know.

JOHNS: But who knows, right. You never know.

PHILLIPS: Thanks, Joe.

All right. Your next political update will be in about an hour. And a reminder, for all the latest political news, you can always go to our Web site, cnnpolitics.com.

That does it for us. It's the top of the hour. Suzanne Malveaux, are you ready to go?

SUZANNE MALVEAUX, CNN ANCHOR: I'm ready to go. I think I'm ready. Here we go.

PHILLIPS: OK.

MALVEAUX: Thanks.