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NYPD Ousts Occupy Wall Street; Bailout Funded Bonuses; Gabrielle Giffords Is Getting Better; Protesting Target's Early Opening; Your Chance To Fly In Space; Sending Christmas Cards To Sick Woman; Jerry Sandusky Confronts Allegations; Kids Sold For Sex In America; Cain Flubs on Libya Question; Syria's Saleh May Resign; Jerry Sandusky Denies Pedophilia in Interview, Asked About Joe Paterno; Mayoral Candidate Finds Out He's Running from Newspaper; A Look at the GOP Presidential Candidate Polls

Aired November 15, 2011 - 13:00   ET

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

RANDI KAYE, CNN ANCHOR: Hi, Suzanne, and thank you. And hello, everyone.

We begin in lower Manhattan where the park is cleared, now it's the protesters who are occupied with a critical question, what now? New York police moved in overnight armed with a notice from the private owners of the public park where Occupy Wall Street had been encamped since September 17th. They tore down tents and arrested more than 100 people who refused to leave on their own. Once the grounds were cleaned up, the city planned to re-open Zuccotti Park so long as nobody tried to live there. But the judge rule the city has no right to block tents or campsites, so for now, police are keeping everyone out.

A live report from CNN's Poppy Harlow in just a few minutes.

The former Penn State assistant football coach accused of molesting boys, says, and I'm quoting here, "I shouldn't have showered with those kids." In a phone interview with Bob Costas on NBC, his first public comment since his arrest, Jerry Sandusky says he's horsed around with kids after workouts and he enjoys young people but isn't sexually attracted to them. Sandusky's lawyer in an interview with CNN says the man at the center of a devastating scandal is a big overgrown kid himself.

CNN legal contributor Paul Callan weighs in later this hour.

A congressional committee wants to slash the salaries and bonuses of top executives of the mortgage finance companies, Fannie Mae and Freddie Mac. Those firms would have failed long ago were it not for the biggest tax payer bailout to date, more than $120 billion and counting. We now know that since 2009, and almost 100 million of those dollars went to the top five executives of each firm. The CEOs alone are on track to earn about $6 million apiece in 2011.

The head of the agency that runs Fannie and Freddie says the people in charge are not the ones who led the companies to ruin but are cleaning up the mess. Gabrielle Giffords is speaking out about nearly being killed when she was shot in the head back in January. The Arizona Congresswoman was the victim of a mass shooting in Tucson. She was among 13 people wounded, six people were killed. In a message to her constituents, she says she misses her home state and wants to get back to work.

(BEGIN AUDIO CLIP)

REP. GABRIELLE GIFFORDS (D), ARIZONA: Hello, this is Gabby Giffords. I miss you. I miss Tucson. The mountains, blue skies and the heat. I'm getting stronger. I'm getting better.

(END AUDIO CLIP)

KAYE: Giffords has made what her doctors call a miraculous recovery from her wounds ten months ago.

A part-time employee of Target says the company has gone too far in requiring him to work on Thanksgiving Day. So, Anthony Harwick is taking matte matters in his own hands. He has started an online petition in a bid to get Target to change his work schedule and has won tens of thousands of supporters. Right now, he's supposed to start his 10-hour shift on the night of Thanksgiving. He says he'll need to sleep all day to get ready and will have to miss having Thanksgiving dinner with his fiance's family.

Facebook has come under a spam attack that includes pornography, violent images and other graphic items. One Web security consultant says that explicit and violent images have been flooding the news feeds of Facebook users for the past 24 hours or so. He says it isn't clear how the images are spreading, one possibility, click jacking. When clicking on a friend's image shares it in your own feed. The blog -- all Facebook says, Facebook has been quietly taking down the images.

In an e-mail statement, a Facebook spokesman says, quote, "Protecting people who use Facebook from spam and malicious content is a top priority. We are investigating and addressing the issue."

If you always wanted to fly in space, well now is your chance. Right now NASA is kicking off the process for selecting the next class of astronauts. These are some live pictures there. If you make the cut, the Space Agency says part of your job will include conducting advanced research to benefit life on earth aboard the International Space Station. You'll also develop the know-how and skills needed for longer flights to explore the solar system.

Now, if you're really interested, you can check out the Web site, USAJobs.gov.

Eviction letters are out. How Occupy protesters were ousted just two days shy of occupying Wall Street for two months and what this means for the future of that movement.

But first, I want you to take a look at this. More than 900 Christmas cards for an ailing mother in a hospice. Her sons don't think she'll make it to her favorite holiday, Christmas, and asked friends to send cards. Well, the idea spread on Facebook and the cards have been pouring in, you see them there. For all of those who sent in cards, you are today's "Rock Stars." If you want to join the effort to send cards, you can do so at this address.

(COMMERCIAL BREAK)

KAYE: In face time, the many faces of Occupy Wall Street, to the protesters forcibly cleared from a park in lower Manhattan, it is a movement that can't be denied. The bottom 99 percent finding their voice. To New York's mayor and to many other mayors across the country, it is a test, free speech rights versus community health and welfare. Michael Bloomberg says conditions at the two-month-old encampment at Zuccotti Park had become, quote, "intolerable." Right now, it is also a test between city hall, which wants to re-open the park minus tents and sleeping bags, and a New York judge who says the tents are allowed.

CNN's Poppy Harlow right in the thick of it all. So Poppy, tell me, what is the latest on this court order?

POPPY HARLOW, CNNMONEY.COM CORRESPONDENT: That's a very good question, Randi. Here is a copy of the court order that came down about 10:00 a.m. this morning. We got it from protesters who came back here, they are waving it around, demanding to be allowed in the park saying this is illegal that you're not letting us back in the park. And indeed, if you look at this court order, what it says is that up until a hearing which just started a little while ago, that the protesters were indeed allowed in the park. And also that the rules limiting them with the curfew saying they couldn't have their tents in there could not be enforced.

Now, our Brian Vitagliano is in the courtroom right now where the hearing is going on between city officials, also Brookfield the developer, the owners of this park, and also -- and also some of the protesters. The judge is asking questions about why they don't want the protesters in the park? The developer is saying it's not meant to be a tent city, it's not meant to be lived in. So, this is very fluid, this is very ongoing. A lot of legal questions as to whether or not the protesters will be allowed in this park, Randi. They were told overnight by the mayor's office that they would be let in this morning after it was cleaned.

KAYE: So, what -- I'm looking at the activity there behind you, I mean, what are the protesters doing right now? And how are police reacting to them?

HARLOW: So, hundreds of protesters came back at about 10:30, 11:00 a.m. this morning, and they surrounded the park. It got rather aggressive at time, they are shaking the police barricades trying to get in. We saw a few protesters, one in particular with an American flag, jump over. He was immediately tackled by police. So, they've come back, they're staking their ground. And we've also heard that hundreds more are marching here from a location nearby. So, at this point, they are watching and they're waiting. I do have to tell you though, it is much more calm here than it was overnight. We've been reporting since 2:00 in the morning down here when those evictions were happening. The altercations then were much more severe. There were 100 protesters that were arrested. They were handcuffed, led on to New York City police buses, and they -- and they were booked by the cops. So, it's less of that now, but there is this watch, wait and see, and the protesters telling me they have no plans to leave.

KAYE: Yes, I understand you were there all night reporting on that. So, what is the situation with the protesters now? I mean, do they seem like they're still a cohesive unit or do they seem to be breaking up, maybe going to different parks on their own or looking for another home?

HARLOW: They sound to me like a rather cohesive movement. They're going in groups, big groups, to different parts of the city but their hope is to come back here. One interesting thing, Randi, I think we have some sound we can play for you overnight from them about what happened and what their goal is as some of them obviously want to get back into the park. So, take a listen to some of the people we talked to in the wee hours of this morning.

(BEGIN VIDEOTAPE)

HARLOW: What happened? You said you were -- you just left the park, it's about 3:00 a.m., tell me what happened.

UNIDENTIFIED MALE: I was sleeping when I heard all sorts of shouting and screaming going on. I woke up to see the cops were surrounding the park barricading it. I couldn't hear the orders through the microphone, it wasn't until like 20 minutes later when I found out what exactly they were doing, trying to kick us out.

HARLOW: Can you tell me what happened and why you are gathering here?

UNIDENTIFIED MALE: We're gathering here to continue to support the need for justice in this world. The growing income gap and the (INAUDIBLE) run away and we can join this entire country and this is it, it's a continued stand.

(END VIDEOTAPE)

HARLOW: And Randi, just a little color, overnight, at one point, some of the protesters banded together and starting singing, "We Shall Overcome." You heard them say we are the 99 percent, these are our streets. One of the protesters I talked to a few hours ago was arrested last night, he was released this morning he said. And I said, what does not having this park right now do to this movement? He said, it's not about a location, it's about what we believe in, what we're moving towards. He believes they can do it with or without the park.

KAYE: Poppy Harlow in lower Manhattan. Poppy, thank you. He says he likes to horse around with kids but is not a pedophile. Could Jerry Sandusky's surprising comments come back to haunt him in court? A look at the case against him.

(COMMERCIAL BREAK)

KAYE: For days now you've seen scenes like these play out around Penn State. Jerry Sandusky and the disturbing charges he allegedly raped and molested eight young boys. His attorney is making the media rounds and Sandusky himself is also speaking out. You're about to hear from Sandusky directly in an interview that he did with Bob Costas on NBC News "Rock Center."

Let's bring in CNN legal contributor Paul Callan, a former New York prosecutor and currently a criminal defense attorney. He joins us from New York to give us a little bit of perspective on this.

Paul, you have tried cases on both sides here. The big question a lot of people are asking today is, why did Sandusky give this interview? Do you think that this was a smart decision to talk about his case?

PAUL CALLAN, CNN LEGAL CONTRIBUTOR: No. I actually think it's a suicidal defense strategy. I've never seen anything like this. The one thing that anybody who either has prosecuted or defended child abuse cases knows is that they're very, very hard cases to prove in court. You're dealing with children who have to testify or you're dealing with somebody who's trying to recollect, as in this case, something that happened 10 years before. Many time the case falls apart by the time it comes to trial. So for Sandusky to publicly admit showering with little boys and having his attorney do a separate press tour admitting his client did these things is really astonishing and shocking as a defense strategy.

KAYE: Yes. I want to share with our viewers some of that interview from NBC. At one point Bob Costas asks him point blank, are you a pedophile? I want you to listen to the response.

(BEGIN VIDEO CLIP)

BOB COSTAS, NBC CORRESPONDENT: How would you define the part you played? What are you willing to concede that you've done that was wrong and you wish you had not done it?

JERRY SANDUSKY, FORMER PENN STATE DEFENSIVE COORDINATOR (via telephone): Well, in retrospect, I, you know, I shouldn't have showered with those kids. You know, so --

COSTAS: That's it?

SANDUSKY: Yes. I mean, that's -- that's what hits me the most.

COSTAS: Are you a pedophile?

SANDUSKY: No.

COSTAS: Are you sexually attracted to young boys, to underage boys?

SANDUSKY: Am I sexually attracted to underage boys?

COSTAS: Yes.

SANDUSKY: Sexually attracted? You know, I enjoy young people. I love to be around them. I -- I, but, no, I'm not sexually attracted to young boys.

(END VIDEO CLIP)

KAYE: Watching that Paul, I mean it is just so uncomfortable to watch. I mean, what do you make of that exchange?

CALLAN: Well, you know, this is a prosecutor's dream to have a defendant say something like that on the air. You know, and I think that what a prosecutor would argue to a jury ultimately is that Sandusky, in giving that answer, it's almost this weird view of the world that he has, which is that showering with little boys is OK and that he -- when asked if he's sexually attracted to them, he hesitates before answering. Most people would say, no, are you kidding? How could you say such a thing about me?

KAYE: Yes.

CALLAN: He has to stop and think about it. So it's very, very damaging to him, I think, in terms of his ability to defend himself later on at the time of trial.

KAYE: I want to get through a couple more of these clips. As you said, Sandusky does admit to showering with some of these boys. As he puts it, horsing around. Listen to this.

(BEGIN VIDEO CLIP)

SANDUSKY: I could say that, you know, I have done some of those things. I have horsed around with kids. I have showered after workouts. I have hugged them and I have touched their leg without intent of sexual contact. But -- so if you look at it that way, there are things that -- that wouldn't -- you know, would be accurate.

(END VIDEO CLIP)

KAYE: Just very quickly, Paul, your reaction to that, because I want to get to a lawyer sound bite as well. But, I mean, is that a crime there, what he said? What he admitted to?

CALLAN: Well, I say he's made out 60 percent of the prosecutor's case. The prosecutor's got to put him in a position where he's naked with a boy in a shower. He's got himself touching the boy' leg. You're only one inch now away from making out a sexual abuse count by showing that he touched him in an improper area. So he's handed the prosecutor his case.

KAYE: CNN reporter Jason Carroll spent about an hour and a half with Sandusky's lawyer yesterday in a sit down interview. I want you to listen to what he says and then I have a question for you.

CALLAN: Sure.

(BEGIN VIDEO CLIP)

JOE AMENDOLA, SANDUSKY'S DEFENSE ATTORNEY: Jerry Sandusky is a big, overgrown kid. He's a jock. For anybody who's ever played sports, you get showers after you workout. I mean when people hear he got showers with kids, oh, my goodness, you know. Like he got showers with kids. That makes him guilty, right? I mean obviously anybody who gets a shower with a kid who's an adult has to be guilty of something. But the bottom line is, jocks do that. I mean they kid around, they horse around.

(END VIDEO CLIP)

KAYE: Overgrown kid. Does something like that fly in court, Paul?

CALLAN: No, it's not going to fly in court and it's really astonishing to see the attorney out making these statements because, frankly, the attorney now may have made himself a witness in the case. You know usually attorneys give this sort of generic, "my client's innocent. We look forward to our day in court."

He's now saying, yes, my client was naked with these boys in showers and he's trying to imply that this is normal conduct. I don't know a lot of people who think this is normal conduct. I don't know anybody who thinks it's normal for a man in his 50s to be showering with the child of another family without, you know, the other family knowing about it. So, I mean, it's just -- it's beyond the pale of common sense to think that someone's going to accept this as normal behavior.

KAYE: Paul Callan, appreciate your insight. Nice to see you. Thank you.

CALLAN: Nice being with you, Randi.

KAYE: A little later we will talk to a senior investigative reporter at "Sports Illustrated" about what Sandusky's answers reveal about Joe Paterno and Penn State's response to past allegations.

Hundreds of girls are forced into sex trafficking each month in the state of Georgia. How child slavery is a growing problem in the U.S., next in "Under Covered."

(COMMERCIAL BREAK)

KAYE: If you think child sex trafficking is a distant third world problem, well, you are wrong. Here in Atlanta, hundreds of girls are bought and sold every month. In fact, the city ranks among the worst in the world for child prostitution. A new short film is dedicated to raising awareness about this under covered epidemic.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE, ACTOR, "THE CANDY SHOP": (INAUDIBLE).

KAYE (voice-over): It may look like a child's fairy tale, but this film deals with an all too real subject.

CHERYL DELUCA-JOHNSON, EXECUTIVE DIRECTOR, STREET GRACE: It's the rape of children for profit. In Georgia, it's an average of around 300 girls will be sold each month to over 7,000 men.

KAYE: Cheryl Deluca-Johnson is the executive director of Street GRACE, an Atlanta based non-profit organization devoted to combating child sex trafficking. They're using a dark, disturbing allegory to help amplify their message.

UNIDENTIFIED MALE, ACTOR, "THE CANDY SHOP": If there wasn't such a need, there wouldn't be so much business now would there?

KAYE: The film is called "The Candy Shop." It's a story of girls being lured into and rescued from the sex trade. And its imagery is raising eyebrows.

DELUCA-JOHNSON: It has opened a lot of doors that may have been closed because people don't want to have a documentary shown to a particular audience because it's too graphic and too harsh and too real. Whereas this has the same message, but it's done in a way that people are open to it and more able to accept.

UNIDENTIFIED MALE, ACTOR, "THE CANDY SHOP": Girls go in and candy comes out. It's magical.

(END VIDEOTAPE)

KAYE: And joining me now here in studio, the producer and director of "The Candy Shop," Brandon McCormick.

I watched that trailer for it on your Web site. It's pretty serious. Very intense. I've never seen a take on such a serious issue in sort of this fairy tale like way. What made you decide to go at it that way?

BRANDON MCCORMICK, PRODUCER/DIRECTOR, "STOP THE CANDY SHOP": Well, you know, a couple of years ago I came to the knowledge about the 300 girls a month in the city of Atlanta who are sold for profit and it was one of those things that it gets in your brain and you can't unknow it. It kind of sticks with you. So, you know, my team, Widestone, kind of came together to figure out what we were going to do about it. And we're not documentary filmmakers. We make fairy tales. So we thought, let's give it a shot. It hasn't been done before. So we wanted to make a story for -- an allegory for the cause.

KAYE: And what's the reaction been so far?

MCCORMICK: Well, we premiered at the Fox last November, filled it up, and we had -- it's really helping Street GRACE launch a national campaign to help stop the candy shop.

KAYE: I mean is this a film that you would -- that you think is appropriate for children to watch?

MCCORMICK: You know, it's interesting, people have said that if you don't know what the subject is about, it's actually not vulgar or disturbing. If you know what it's about, it becomes very disturbing.

KAYE: And I know a lot of the funds that you've brought in for this project you're going -- you're going to actually put towards trying to do away with this issue.

MCCORMICK: Absolutely. Yes, we raised funds with Twelvesome (ph) Church (ph) and Doorpost (ph) Film Festival and we've signed away the rights to the film to Street GRACE. So anything it makes, anything it does, it goes to Street GRACE entirely, 100 percent.

KAYE: Yes, well your heart brakes really for these young girls.

Brandon McCormick, nicely done, thank you.

MCCORMICK: Thank you.

KAYE: Nice to see you.

To watch the film and learn how to help stop child sex trafficking, you can visit stopthecandyshop.com.

He stumbled over sexual harassment allegations. Now a question about Libya. Can Herman Cain handle the hot seat of running for president. That is next in "Fair Game."

But first, here is your political junkie question of the day. Who was President Richard Nixon talking to during the infamous 18 and a half minute gap in the White House tapes? If you know the answer, send me a tweet @randikayecnn. I'll give a shout-out to the first person with the right answer when we come back.

(COMMERCIAL BREAK)

KAYE: Before the break, I asked who Richard Nixon was talking to during the infamous 18.5 minute gap during the White House tapes. He was talking to his chief of staff, Bob Haldeman. It was three days after the Watergate break in.

Give a shout out to Scott Swane (ph), who sent me the right answer first on Twitter at scottswane (ph)! Show him a little Twitter love, everyone. Nice job.

Time to go beyond the "Political Talking Points" to the heart of the political debate where all sides are "Fair Game."

Herman Cain is in the spotlight for something other than his 9-9- 9 plan own his sexual harassment claims. This time, it's a stumble or a tamer during a question-and-answer session with newspaper editors in Milwaukee. Take a listen.

(BEGIN VIDEO CLIP)

UNIDENTIFIED REPORTER: So you agree with President Obama on Libya or not?

HERMAN CAIN, (R), FORMER GODFATHER'S PIZZA CEO & PRESIDENTIAL CANDIDATE: OK, Libya. President Obama supported the uprising, correct? President Obama called for the removal of Gadhafi. I just want to make sure we're talking about the same thing before I say, yes, I agreed, or no, I didn't agree. I do not agree with the way he handled it for the following reasons. No, that's a different one. I've got to go back to see. Got all of this stuff twirling around in my head. Specifically, what are you asking me, did I agree or not disagree with Obama?

(END VIDEO CLIP)

KAYE: Well, Cain says it was just a pause. On CNN's "AMERICAN MORNING" today, one of editors in that room said he was stunned by Cain's response to the question.

So let me bring in CNN contributor, Maria Cardona and Republican strategist, Ron Bonjean.

Maria, let me start with you. Was this a big deal or maybe just a blip on the radar, the candidate in the middle of a tiring campaign?

MARIA CARDONA, CNN CONTRIBUTOR: It is a huge deal, Randi. and it wasn't just a pause. It was a long pause, followed by a shift in his chair, followed by rearranging of his jacket, followed by a clarifying question to the questioner, followed by looking up above his head. It was more painful to watch. If it's possible, more painful than Perry's debacle in the debate the other night.

And what it clearly shows is -- I've had a theory about Herman Cain, as a lot of strategists have, that he was never really in this to seriously win it. He was not prepared. And Libya is not some obscure country in the South Pacific. It's not even one of the stands, which apparently Herman Cain doesn't think are important to know the names or leaders, as he said weeks ago. It was Libya. Libya, the front page of many international newspapers and national newspapers for months. I don't think it is a small deal. and it's going to be very tough for Herman Cain to live this down.

KAYE: I want to share with our viewers another important clip. Cain's campaign said this snippet doesn't tell the whole story. That he did answer that question. It was taken out of context.

Let's hear what he answered, really 22 seconds after that moment.

(BEGIN VIDEO CLIP)

CAIN: I would have done a better job of determining who the opposition is. And I'm sure that our intelligence people had some of that information. Based upon who made up that opposition, OK, based on who made up that opposition, might have caused me to make different decisions about how we participated. Secondly, no, I did not agree with Gadhafi killing its citizens. Absolutely not. So something would have had -- I would have supported many of the things they did in order to have stopped that. It's not a simple yes or no because there are different pieces. and I would have gone about assessing the situation differently, which might have caused us to end up at the same place. But what I think more could have been done, was what's the nature of the opposition?

(END VIDEO CLIP)

KAYE: Ron, what do you think? Will anyone remember that -- seemed to be a pretty well thought answer, or will they just remember the pause?

RON BONJEAN, REPUBLICAN STRATEGIST: They'll usually just remember the pause. It just shows you how difficult it is to run for president, especially when you get thrust into the front-runner spot as he did. He's dealing with a big-time crisis around him. And it just shows you that he has to be able to walk and chew gum at the same time. This is a very unforgiving process.

Remember, it's the primary process and that's what it's for, is to find out who's actually the best to take on President Obama in the 2012 election. Herman Cain has a lot of development to do on the foreign policy side in terms of speediness and answering question. He can't have anyone second-guessing him right now.

KAYE: Yes.

BONJEAN: He can't make any more stumbles because he's made too many. It just shows you how tough it really is to run for president.

KAYE: Fifteen seconds, Maria. He's down 14 percent now, according to the latest CNN/ORC poll. How does he turn it around?

CARDONA: I don't know that he can at this point, Randi. But it has been a very topsy-turvy season. Who knows? The problem here is it was a flub on foreign policy. Foreign policy which is where President Obama has done so well in terms of getting rid of so many dictators and al Qaeda's leaders. Right now, I think he is -- President Obama is insurmountable when it comes to foreign policy. People won't see Cain as a person to be able to beat Obama on foreign policy.

Thanks you both.

That is "Fair Game" today.

CARDONA: Thanks so much.

KAYE: There is more talk of change in the Middle East. After months of unrest, the embattled president of an Arabian Peninsula country says he's willing to resign under certain conditions. Do you know what country we're talking about? The answer coming up when we go "Globe Trekking."

(COMMERCIAL BREAK)

KAYE: "Globe Trekking" begins in Syria where the government is facing increasing pressure over its violent crackdown on dissidents. Neighboring Turkey threatened to stop supplying Syria with power. Turkey's energy minister said, quote, "We are supplying them with electricity at the moment. If they stay on course, we may be forced to reexamine all of thse decisions," unquote. A dissident group claims 81 people died in Syria yesterday, which would make it one of deadliest days since the crackdown began.

(BEGIN VIDEO CLIP)

(GUNFIRE)

(END VIDEO CLIP)

KAYE: Amazing scene there. In an apparent bid to ease international pressure, Syria says it released more than 1,000 detainees today.

Now to Yemen, where President Saleh says he has no desire to hang on to power. He said he's willing to leave office within 90 days after certain conditions are met, including signed agreements and elections. Saleh's departure could end months of political violence. But some observers are skeptical. They say Saleh has hinted at resignation in the past only to change course.

The scandal surrounding Jerry Sandusky and Penn State keeps on unraveling. Why our next guest says Paterno knew from day-one and kept silent.

And still ahead, time is running out for Brad Pitt. Why he says the end is near.

But first, from disco diva to disco-inferno. New York couple says Patti LaBelle went on a profanity-laced tirade against them in Manhattan and that it scared their 18-month-old so bad the child threw her up lunch. They're suing, saying their daughter now has personality changes and sleep disorder. If it's true, Patti LaBelle, sing it with me know, your 15 minutes are up.

(SINGING)

(COMMERCIAL BREAK)

KAYE: More now on the alleged sex scandal involving Penn State and the former assistant football coach, Jerry Sandusky. as we've mentioned, Sandusky made his first extended public comments since his arrest in an interview with NBC's Bob Costas. In that interview, Sandusky denied that he is a pedophile and denied all of the allegations contained in the graphic 23-page grand jury report released earlier this month. Costas also asked Sandusky what former Penn State head football coach, Joe Paterno, knew about the allegations and if he ever spoke personally to Sandusky about the scandal.

(BEGIN VIDEO CLIP)

BOB COSTAS, NBC SPORTS: To your knowledge, did Joe Paterno have any information regarding objectionable activities on your part prior to that report in 2002?

JERRY SANDUSKY, FORMER PENN STATE ASSISTANT COACH: My -- I can't totally answer that question. My answer would be no.

COSTAS: Did Joe Paterno at any time ever speak to you directly about your behavior?

SANDUSKY: No.

COSTAS: Never?

SANDUSKY: No.

(END VIDEO CLIP)

KAYE: Joining us now with more is Jon Wertheim, "Sports Illustrated" senior investigative reporter.

Jon, thanks for coming on the show.

Do you buy what Sandusky said there, that Joe Paterno knew nothing of the allegations until 2002, when a graduate assistant coach told Paterno that he had seen Sandusky sexual assault a young boy on campus?

JON WERTHEIM, SENIOR INVESTIGATIVE REPORTER, SPORTS ILLUSTRATED: The whole interview was just bizarre from the first moment. As to that particular allegation, who knew what when, there was a 1998 report that was filed by campus police, a written report, Sandusky allegedly overheard by policemen admitting to this. It went all the way to the local prosecutor. The notion that Joe Paterno, this notorious note take and micromanager, didn't know his number-one lieutenant was subject to a written police report by campus police really strange credulity. But who knows what and where. That's the next step in this whole saga.

KAYE: I'm glad you brought that up. I'm curious what kind of coach Joe Paterno was. Was he a hands-on guy or somebody who let his lieutenants handle something like this?

WERTHEIM: No. I mean, this is a coach who used to be the athletic director of the university. He lived near campus. When I was in state college he was at campus traffic cop, known for note taking. Any coach of a big-time program like that is by definition necessarily a micromanager. It just doesn't wash that all of this activity was going on at the state -- the university outside counsel knew about it. The campus police knew about it. And somehow that didn't come across the attention of the head football coach.

KAYE: What about Sandusky's other comment to Bob Costas and NBC? He said that he feels horrible about what's happened. He feels terrible about what's happened to Joe Paterno and to the football program and Penn State. But when asked if he feels guilty or thinks it's his fault, he says no.

WERTHEIM: Yes. Who knows what he's thinking. Again, I can't quite figure out why he even granted that interview. I don't know if I've seen a defendant in that sort of situation go on TV. This is all admissible, what he was saying. His answers weren't particularly sharp. That was not the most vigorous defense I've ever seen. Who -- that's for a jury to shift through but that whole -- I thought that whole interview last night was just sort of inexplicable.

KAYE: So where does Penn State go from here? Can the school, can the program recover?

WERTHEIM: You know, part of what makes this so interesting, but also so complex, this is just beginning. There are multiple investigations. One of them federal, one of them internal. As you saw last night, we're going to have criminal litigation. , obviously there's going to be civil litigation as well. It's easy to say we need to move forward and put this behind us and learn from it. But really, this is very much a fluid situation. We're going to be learning a lot about a lot of different people in the few months, even years. So it's not so easy to just say we're going to move forward.

KAYE: Do you think this will cause high school seniors, who may have committed to play football at Penn State, to change their minds?

WERTHEIM: Reportedly, it already has. This is a school that's going to have a new athletic director and new president and new coach coming in. And you're going to be playing in front of completely -- the scrutiny this team will be under for the next few years will be like nothing we've seen in college football. It's obviously, I think, very minor to this whole story, to the whole tableau, but yes, the makeup of the football team will probably change.

KAYE: Jon Wertheim. Senior investigative reporter for "Sports Illustrated."

Nice to have you on the program, Jon. Thank you.

WERTHEIM: Thank you.

KAYE: Every day on the show we call out someone who has us shaking our heads. And today it is Buffalo High School's head coach in Wyoming. He led the team to two state championships but that doesn't excuse his so-called Hurt Feelings Survey. The "Casper Star Tribune" reports Coach Pat Lynch asked his team to fill out the survey if they're feelings were hurt, a half hearted attempt to address bullying on the team. Reasons given on the survey for those hurt feelings include, quote, "I am thin-skinned and I'm a cry baby."

Other options, quoting here, "I'm a queer and have woman-like hormones." The form also leaves a space for the player's, quote, "girly man signature." Honestly. This is from a guy who spent 22 years coaching? Coach Lynch was placed on administrative leave. He has since resigned after apologizing for his, quote, "lapse in judgment and poor choice." That is an understatement. Coach Lynch, for your ridiculous Hurt Feelings form, filled with homophobia and sexism, it is time for you to face the music.

(SINGING) (COMMERCIAL BREAK)

KAYE: This just in to CNN. Where the attorney for the plaintiff in a Chicago sexual abuse case say the Catholic Church has settled for $3.2 million. The claim against the archdiocese of Chicago, led by Cardinal Francis George, involved the abuse of a minor boy by former Reverend Daniel McCormack. The plaintiff's identity is being kept confidential.

Now, let's go "Street Level" with stories making headlines across the country.

Brad Pitt making news today. The 47-yer-old "Moneyball" actor tells Australia's News 9 that he is ready to retire, retire from acting. He gives it three years. Then what? He might try his hand at the other side of the lens.

(BEGIN VIDEO CLIP)

BRAD PITT, ACTOR: I'm really enjoying the producer side and development of stories and putting those pieces together and getting stories to the plate that may not -- might have had a tougher time otherwise.

(END VIDEO CLIP)

KAYE: And now to Harrisburg, Pennsylvania. The city many people still associate with the 1979 Three-Mile Island nuclear meltdown is the site of a near financial meltdown. City lawmakers could not come up with a plan for handling the $318,000 of debt, so they state may do it for them. Next week, a judge reviews it a bit for bankruptcy protection but the governor could pick somebody to take over the city's books by November 28th.

Now to North Carolina. A 9-yer-old girl survives for two days on Pop-Tarts and Gatorade. That is what she and her father had picked up at a convenience store. After that, their car crashed, trapping her and killing her father. With the vehicle upside down in a deep ditch, she was pinned. A family friend says she tried to escape.

(BEGIN VIDEO CLIP)

KEVIN BRINSON, FAMILY FRIEND: She tried to dig her way out, but she couldn't. She was pinned underneath the car. The only thing she said when we seen her at the hospital was that she was hungry and asked her about her dad. We had to break the news to her and that hurt the most.

(END VIDEO CLIP)

KAYE: A passerby finally spotted the car and called 911.

To New York, where doctors are warning there is a new flu outbreak. The doctors are veterinarians. The flue is canine flu. Reports of cases in New York and northern New Jersey have been sporadic but some vets are recommending flu shots for dogs because it can spread from kennels and doggie daycares. There's never been a confirmed case in the humans.

And finally to Iowa. You sit down with your cup of coffee, getting ready for your day, open the paper and find out, hey, guess what, you are running for mayor. That's how 18-year old Jeremy Minnier found out that he was running for mayor in Aredale, Iowa. A third of the town's voters wrote his name in. Not bad for a town with a census data of 73.

Mr. Mayor, nice to have you on the program. How did you, at 18, actually win this thing and end up as mayor?

JEREMY MINNER, MAYORAL CANDIDATE, AREDALE, IOWA: Well, I didn't know until the following day after elections that it had actually happened. So it was actually a pleasant surprise. I knew a couple weeks beforehand that it could possibly happen and it was just a real surprise to me, that it actually did happen. It was reality.

KAYE: So are you hard at work already? You're not sworn in until next year, but are you getting ready for the big job?

MINNIER: Yes, there are many different ideas and there is much research that I have been looking into just to further more what I need to know to do it different, tasks that need to be looked into before I actually do take office.

KAYE: So your father, from what I understand, was mayor there before you were even born. Does that make it even more special?

MINNIER: I guess so. And it is a good thing. Because he was well liked around the community and we worked together and everything and with him being the mayor before, it's just kind of a surprise to everyone that it's a family tradition with my brother-in-law becoming mayor last week in Hampton where I attend school also. That was another big thing that was accomplished as well.

KAYE: What's going to be your first order of business?

MINNIER: Well, there's many different things I'd like to see done. And whether it be from just keeping the streets clean, planting flowers and planters up on Main Street, just the overall appearance of the city. And I would like to see us work together and just have everybody work together and that's one of the big things about a small town community. Is everybody -- we just work together to accomplish one main goal and we all get along and just can do what we want with what we got.

KAYE: I know you're going to be going to college next year and doing a little part time there so you can work this other gig of yours.

We want to wish you best of luck and congratulations, Mayor. Nice to have you on the show.

MINNIER: Yes, thank you.

KAYE: Amazing. Let's check in with Mark Preston for politics happening around the country and in Washington.

That's pretty impressive, 18 years old and mayor.

MARK PRESTON, CNN SENIOR POLITICAL EDITOR: He's putting me to shame right now, Randi.

KAYE: We should talk about Rick Perry.

PRESTON: He has a new plan and spelled it out at a speech, and you guessed it, in Iowa. Let's look at his plan. Number one, is dismantling Congress as we know it. He's proposing that we have a citizen Congress made up of part-time legislatures. Their salaries should be cut in half and they should have to get other jobs back in their home districts.

KAYE: Send them home, live under the laws, among the people that they represent.

PRESTON: Now, of course, in order for this to work, he has to repeal. Members of Congress can't hold other jobs -- Randi?

KAYE: And does he have any plans for the Supreme Court that he revealed today?

PRESTON: He does. What he'd like to do is make a major, major change to the court and quote, unquote, the activist judges. We heard this a lot from conservatives. One thing that we would customer is term limits for Supreme Court justices. They would only be able to serve 18-year terms. Implementing this term limit would ensure, according to Perry, that there would be more turnover on the high court and also allow each president to pick two new justices to the court during their presidency.

KAYE: And we have about 30 seconds left. But I know the caucus. I checked my calendar. Anything new about that?

PRESTON: There's new poll numbers out right now, Randi. This is from "Bloomberg News," a news survey out this morning that showed some very interesting numbers. Basically, if you look at them right there in the screen, it shows that Herman Cain is leading the pack with 20 percent, followed by Paul at 19 percent and the Mitt Romney and Newt Gingrich leading out the top four. When you look at the sampling area, it shows that the race for the Iowa caucus is in deep heat -- Randi?

KAYE: Mark Preston, nice to see you. Thank you.

And thank you, everyone, for watching. As always, I'd love to hear what you think. You can continue the conversation with me online on Facebook or on Twitter at randikaye/cnn.

Time more for me to hand it over to Brooke Baldwin.

Hi, Brooke. BROOKE BALDWIN, CNN ANCHOR: Hi, Randi. Thank you so much.