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Gingrich Leads Iowa Polls; Perry and Bachmann Says No to Trump Debate; Former FBI Agent in Iran Hostage Video; EU Debt Crisis Summit; Sandusky's Wife: "Never Hurt Them"; Putin Bashes Secy. Clinton; Wall Street Reacts to Europe Deal; $20,000 to Sit Near Kim Kardashian; Eddie Murphy to Play Marion Barry; Chris Paul Deal to Lakers Dead; Liz Taylor's Life Goes up for Sale

Aired December 09, 2011 - 09:00   ET

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

DON LEMON, CNN ANCHOR: Thank you. Have a great weekend.

(LAUGHTER)

LEMON: Go on.

ROMANS: Don't forget me at 9:30 Eastern on Saturday. That's me, too, so --

LEMON: That's right.

COSTELLO: I watch you both, OK? And if I can't catch you I TiVo you.

LEMON: We believe you. Thank you. See you on Monday. Have a good one.

All right. It is the top of the hour. The Iowa caucuses are less than a month away. They are the first big test of the Republican field and a lot can change in 3 1/2 weeks as we know. Just ask Newt Gingrich and of course Herman Cain.

The best political team on television, all over it for us. CNN's deputy political director Paul Steinhauser is going to join us in just a moment but right now let's talk with our chief political correspondent, Candy Crowley.

Good morning, Candy. There's another big debate tomorrow night. This one won't be like the others. No Herman Cain this time and Newt Gingrich is the guy to beat.

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT: Well, yes. I mean there's actually a lot at play in this debate which probably will make it the most high decibel debate that we've seen.

Number one, the calendar is kind of closing in on him. Those caucuses are less than a month away. Number two, the conventional political wisdom always has been -- there are three tickets out of Iowa. Three people survive. So not only do you have Mitt Romney who needs to go after Newt Gingrich and start to drive down some of those poll numbers, you have everybody else on that stage that wants a ticket out of Iowa so they go after Newt Gingrich as well, and probably a little bit of Romney.

So you have the makings of both the calendar and the politics of it at this point. This sort of promise it to be kind of a lively affair.

LEMON: Of course it will. I mean we're talking now about -- you were talking about the GOP hopefuls but what about -- what about the president? Does this Gingrich's rise change anything for the White House and their strategy?

CROWLEY: Well, I think the re-elect campaign, you know, has begun to pay a little attention to Newt Gingrich. What they mostly want is just chaos in the Republican Party.

LEMON: Yes.

CROWLEY: So whatever they can do to foment that, if they can boost Newt or boost Mitt against Newt, if they can take them both down a little bit, that's fine. They can put that in the bank for the general election. But right now what the White House -- the White House -- the re-elect still believes this is going to end up being Mitt Romney because he seems better prepared for the long haul.

But what the -- again what they most want is for whoever it is to spend a whole lot of money between January and June, and have a bloody fight within the Republican Party while the president remains presidential. So you've got all these, you know, Republicans out there politicking, and then can you have your guy, you know, out there, you know, on the side of truth, justice and the American way, and looking all presidential.

So, you know, what they're for in the re-elect campaign is as long and as hard a fight as they can get in the Republican primary.

LEMON: So this event on Saturday night is going to make for some good television for you on Sunday morning. Who are you going to have on "STATE OF THE UNION"?

CROWLEY: I should hope so. We're going to talk to one of those people who would dearly love a ticket out of Iowa, that's Rick Santorum. Coming off that debate to see what he makes of the Newt rise, what he makes of his own chances. He's, you know, practically set up camp in Iowa as you know.

So we'll talk to him. We'll also take a look at the end of the war in Iraq. That happens in month.

LEMON: We'll be watching. Thank you, Candy Crowley.

OK, now we want to go -- want to bring in Paul Steinhauser.

So let's talk about the other debate, the one -- it's fair to say -- starring Donald Trump. Rick Perry, Michele Bachmann now telling Donald, no thanks -- Paul.

PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Yes. And we're down to just two candidates who say they will take part in this debate if it happens. Trump teaming up with Newsmax, the conservative reporting Web site. The debate is supposed to be in Iowa on the 27th of December, just two days after Christmas, but Newt Gingrich and Rick Santorum are the only two who've said yes, we'll be there.

And you mentioned the two yesterday, Rick Perry, the Texas governor, and Michele Bachmann, congresswoman from Minnesota, saying thanks, but no thanks. It's surprising on Bachmann, she's met four times this year with Trump.

And Don, of course, you remember earlier this year Trump himself were to bid for the Republican presidential nomination. He says he'll probably make an endorsement after this debate but he says if he doesn't like any of the candidates, he'd still may run as an independent so let's stay tuned on this one. With Trump, you never know what's going to happen -- Don.

LEMON: And this will be a debate that's going to be without Herman Cain. He might be out of the race but we're hearing a lot from him still -- Paul.

STEINHAUSER: Yes. He's doing interviews this week and he's talking about trying to still get his message out there even though he suspended his campaign for the White House. He talk about maybe a radio or a TV gig. Remember he was a radio talk show host in Atlanta before he ran for the White House earlier this year.

He also talked about an endorsement. Remember when he suspended his campaign a week ago he said he would be making endorsement. It doesn't sound like he's in that much of a rush. Here's what he said last night on FOX News.

(BEGIN VIDEO CLIP)

HERMAN CAIN (R), FORMER PRESIDENTIAL CANDIDATE: I am in the process of making that evaluation. Remember, as a businessman, I don't shoot from the lip and so I have some discussions that I'm going to have with several of the candidates and we've got to see how far apart we are.

SEAN HANNITY, FOX NEWS ANCHOR: Who has sought your -- who has sought your endorsement?

CAIN: Let's just say that several of them, we have talked.

(END VIDEO CLIP)

STEINHAUSER: Remember, Cain's poll numbers were dropping big time before he suspended his campaign because of those sexual harassment allegations and the allegations of a 13-year affair with an Atlanta businesswoman.

But, Don, he still does have some support among some people in the Tea Party movement, no doubt about that -- Don.

LEMON: Yes. I've watched that live last night and he said, we could have turned the poll numbers around but there were going to be more people coming out, and on and on and on. So that's where that's going.

Thank you very much. Paul Steinhauser, in Washington, for us.

We're going to have our next political update in one hour. And a reminder, for all the latest political news, go to our Web site CNNPolitics.com.

On to other news now. This morning for the first time we're seeing a hostage tape of retired FBI agent Robert Levinson pleading for help. He vanished in Iran nearly five years ago.

Take a listen.

(BEGIN VIDEO CLIP)

ROBERT LEVINSON, FORMER FBI AGENT: Please help me at home. Thirty-three years of service to the United States deserves something. Please help me.

(END VIDEO CLIP)

LEMON: Hard to look at that.

Let's bring in CNN's Jill Dougherty now. She's at the State Department for us.

Jill, what can you tell us about that tape? The family has had it for a while but just posted it online. And I'm sure you find it hard to watch as well.

JILL DOUGHERTY, CNN FOREIGN AFFAIRS CORRESPONDENT: It really is. You know, I mean, the mystery -- he disappeared, Robert Levinson, former FBI agent, disappeared almost five years ago and -- in Iran. And it was a very big mystery. I talked with the family in the early days and nobody seemed to know where he was.

And back in March there was what was being referred to as proof of life. Secretary Clinton talk about it and the family, of course, did. And the indication was that there was something that proved that he was alive. Nobody knew exactly what that was either. Obviously it turned out to be this videotape. And the indication from the State Department was that he was being held someplace in southwest Asia.

That was really kind of undefined. But of course he disappeared when he was working, Don, now having retired from the FBI, he was working on some investigative things. This one dealing, it's believed, with cigarette smuggling and he disappeared in Iran.

Now to see that videotape, what he does say is that he's being treated OK but that he is running out of diabetes medicine. Obviously he looks very gaunt there and the family put it on the Web site, apparently to try to get some type of conversation going with the people or groups who are holding him to say, what do you want, what are your demands. And they want help from the U.S. government. LEMON: Jill, it goes without saying that this is not going to help soothe tensions between Washington or the United States and Tehran.

DOUGHERTY: You know, it's a very difficult time because we've been reporting, of course, almost every day the difficulties right now in the relationship. You have the plot against the Saudi ambassador, you know, rumors that Israel might strike their nuclear programs. A lot of very difficult things.

The problem here has been it's not clear precisely who is holding him. The United States government has talked to the Iranians indirectly and directly about this, but they've never gotten any indication from the Iranians that they know where he is. That's what Iran is saying. So it's very murky. But there obviously is a life at stake and we don't even know how he is doing right now because this video probably came out, let's say, in March. And what's that? Nine months ago?

LEMON: Yes. Yes. Absolutely. OK, thank you, Jill Dougherty. We appreciate it.

We're going to follow that story.

A tense day at the EU's crisis summit where leaders are trying to tackle Europe's debt crisis. They did -- did -- reach an agreement. Some of them anyway.

Christine Romans joins us now from New York.

Christine, I told a fib, I said let's see you on Monday now I'm seeing you right now. So what is the deal with this deal?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: I know. I mean this is a deal among the 17 nations that use the euro currency, Don, and six other nations who want to eventually join it. But it isn't the entire 27-member European community. Britain didn't want to sign on to this.

David Cameron, the prime minister, saying, look, he needed safeguards and protections for British interests and he simply didn't see that. They wanted to stick with the original treaty as it stands that keeps all these 27 countries together. Twenty-seven countries together but 17 of them use the same currency.

Of those 17 then, they've agreed to some new -- the outline I guess that they are going to have tax and budget policies that are more -- that are more in line with each other. They're going to allow more what's called fiscal unity and that's the direction that they're -- that they're going to go.

And markets so far seem to like that we're moving down the road but I want to be very clear here, it's a long road, Don. There's a lot of work to be done. You've got -- UK is clearly a fly in the ointment. And Matt McCall, who's a money manager, I want you to -- I want you to note his caution here. Listen. (BEGIN VIDEO CLIP)

MATT MCCALL, PRESIDENT, PENN FINANCIAL GROUP: You keep pushing down on somebody else. You know, well, we'll blame on Brits this time. We'll blame the Greeks this time. We keep blaming it at somebody else but nothing gets done. We don't fix the actual issue is they're spending too much money and not bringing enough money.

(END VIDEO CLIP)

ROMANS: Spending too much money and not bringing in enough money. That sounds familiar, doesn't it? That's what the U.S. is grappling with as well, Don. But what this is, is these core countries, 17 plus six others who want to join them eventually, they're promising to try to have more fiscal unity and that's what -- and that's clearly what these countries need to do to go forward here. But a lot of work still to be done -- Don.

LEMON: Christine Romans, thank you very much. Of course we're going to be watching the markets closely.

All right, Christine.

So we've got the U.S. perspective on how this deal might affect us. Let's check in now for reaction in Europe, Zain Verjee joins us from London with the headlines.

Good morning, Zain.

ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: Good morning to you, Don. The eurozone is split. Many leaders are just saying, you know what, forget about Britain, we're just going to push ahead with new fiscal rules in order to balance the budget and just leave the British isolated.

Let me give you an idea of what "The Guardian's" headline is. It says today, "The European question, will it be splendid isolation or miserable?" "I do not hear the sound of champagne corks or celebration among British eurosceptics. Who knows what happens now? But Europe, for all its follies and failings, has become a scapegoat for weaknesses that are really our own. We may be about to rediscover that awkward truth. It was why we joined in the first place."

Look at the "International Herald Tribune." Its headline, "Treaty to save euro takes shape but Britain sits out."

Don, it says, "They're not a perfect solution because it could be seen as institutionalizing a two-speed Europe. The intergovernmental pact could be ratified much more quickly by parliament than a full treaty amendment."

One of the questions now is, how are they going to move ahead. The difficulty is also going to be in implementing it -- Don.

LEMON: Zain Verjee, appreciate your reporting. Thank you very much. Jerry Sandusky's wife speaks out about the child sex abuse case against him and the claim she did nothing to help an alleged victim. That's next.

And police in Oklahoma make an unusual arrest at a local Wal- Mart. A woman allegedly trying to make crystal meth inside the store. "Cross Country" next.

(COMMERCIAL BREAK)

LEMON: We're going to take you cross-country now for some stories.

Police in Boston arrested two occupy protesters this morning for setting a tent in the middle of a busy street. The arrest happened hours after the city's midnight deadline for campers to leave the downtown park which, by the way, police did not enforce.

Police in Tulsa, Oklahoma, say employees at a local Wal-Mart caught this woman -- you're not going to believe this -- allegedly trying to make crystal methamphetamine out of cleaning supplies taken from store shelves. Officers say this isn't the first time she's facing drug charges.

And in Bentonville, Arkansas, a convicted murder gets a retrial after one juror disregarded the judge's orders not to tweet during the proceeding. The state Supreme Court is considering whether or not jurors should have cell phones during trials.

Jerry Sandusky's wife is speaking publicly for the first time about sexual abuse allegations against the former Penn State assistant football coach. Dottie Sandusky is not only supporting her husband by angrily denying any abuse went on in her home.

Beth Karas of "In Session" in our sister network truTV joins us now from State College, Pennsylvania.

Good morning, Beth.

What did Dottie actually say?

BETH KARAS, CORRESPONDENT, "IN SESSION" ON TRUTV: Good morning, Don.

Well, in the statement that she issued yesterday, she said among other things that "No child who ever visited our home was ever forced to stay in our basement and fed there. We would never do anything to hurt them. I continue to believe in Jerry's innocence and all of the good things he has done.

And, of course, she came out with this statement, Don, because she's been under fire. People have been raising questions based on victim number nine's statement that he screamed for help as she was upstairs and she didn't come and help.

LEMON: Oh, my goodness. The question is though, are these two new victims, alleged victims, trying to at least in some way insinuate that she had some knowledge of this. So, the question is: does Dottie Sandusky face any legal troubles possibly over an alleged attack happening in her home?

KARAS: Well, theoretically yes, but it all depends upon whether she did indeed have knowledge, as you just said. If these victims can actually prove that she knew -- like they went to her and said to her, he's doing this to me, he's assaulted me, I don't want him to touch me, and she didn't do anything -- yes, she could be charged.

But the key is did she know it. And right now, she's coming out and saying, "I knew nothing about this."

LEMON: Beth, this is very interesting part of the story. There is a new poll out this morning about former Penn State football coach Joe Paterno. Tell us about that, please.

KARAS: Well, that's a Quinnipiac poll. And it's Pennsylvania voters who are saying by a slim majority, but nonetheless a majority, 52 percent are in favor, they support the firing of Joe Paterno, 43 percent are opposed to it. That poll asked about the firing of Graham Spanier and 74 percent were in favor of that, and 65 percent thought that football has too much of an influence on the Penn State campus.

So, that was a little different a month ago, Don. It was a month ago day November 9th that street in front of me was full of students and community folks rioting because of the firing of Joe Paterno. But after a month, the evidence that's come out, tempers are different now and people are saying, maybe it wasn't such a bad idea.

LEMON: Yes. My, how things have changed. Thank you very much, Beth Karas. We'll count on you for more reporting on this.

We're just 10 minutes away from the opening bell on Wall Street. And we'll see how the markets react to all these economic news out of Europe. It happens in just 10 minutes here.

Plus, strong words for the secretary of state. Why Russian leader Vladimir Putin is lashing out at Secretary of State Hillary Clinton.

(COMMERCIAL BREAK)

LEMON: 2011 is almost over and we want you to help us pick the top 10 stories of the year. Just go to this Web site, CNN.com/topstories and take part in our local -- excuse me, our online poll, it's local where you are, online poll between now and December 15th. The top 10 stories of the year will be unveiled on air and online on December 30th.

You know, it's not quite like the Cold War days but there is a war of words breaking out between Russian Prime Minister Vladimir Putin and Secretary of State Hillary Clinton.

Zain Verjee joins us now with more.

So, Zain, what's Putin's problem with the secretary of state?

ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: Well, Putin's mad because he says the U.S. has been encouraging the protests that Russia's been seeing out on the streets ever since Sunday. What happened Sunday? Well, the parliamentary elections happened and Putin's party, even though they lost some seats, came out on top. It's called the United Russia Party. But people have been really angry, they have been demonstrating and Vladimir Putin is pointing the finger directly at U.S. Secretary of State Hillary Clinton.

Listen to how he puts it.

(BEGIN VIDEO CLIP)

VLADIMIR PUTIN, RUSSIAN PRIME MINISTER (through translator): The first thing that the U.S. secretary of state said about the Russian elections was that they were neither fair nor free, even before receiving reports from international observers. By saying that she sets the tone for some public figures in that country, gave them the signal. They heard that signal, and with the support of the U.S. State Department started their active work.

(END VIDEO CLIP)

VERJEE: Secretary of State Clinton lashed back, saying, yes, they weren't free and fair. There have been irregularities and suspicions of fraud also in this election and wants to call for an investigation to occur. She also said that though Russia has made some progress, the U.S. is still supportive of the rights and freedoms of the people of Russia -- Don.

LEMON: Listen, Zain, what is the status of the protests in Russia? Is this going to blow up?

VERJEE: Well, I mean it could. There is a protest being planned for this weekend and some people are calling it the snow revolution. I mean, there hasn't been protests of this kind of nature in Russia for years. They're organizing on Facebook, something like 20,000 people have signed up already to try and coordinate.

The security forces will be out in full force. But there is expected to be quite a turnout in this demonstration. People are upset, largely because of corruption and economic stagnation.

Vladimir Putin is saying, let me be president, I can fix it -- Don.

LEMON: All right. Thank you, Zain Verjee. Appreciate it.

Being the front-runner in the GOP presidential race has proven to be kind of a curse. Just ask Herman Cain, Mitt Romney and Rick Perry. So, when will it be Ron Paul's turn at the top? We'll talk more about that right after the break.

And later, you won't believe -- maybe you will -- how much it is going to cost to sit next to Kim Kardashian at a Vegas New Year's Eve party.

Why? We don't know. I'll give you a hint. It is five figures. The story is coming up later in our showbiz headlines.

(COMMERCIAL BREAK)

LEMON: Let's check your top stories now.

New information about yesterday's shooting on the Virginia Tech campus. The university spokesman says the suspected shooter was not a student there. Ballistics tests show the suspect and a Virginia Tech police officer were killed with the same gun.

U.S. officials disagree over whether a drone shown on Iranian TV is the same one that went missing over Afghanistan. Iran claimed to down the drone. The U.S. skeptic questions the picture of drone's intact appearance.

The family of a captive American has posted an online video showing he is still alive. Retired FBI agent Robert Levinson went missing in Iran back in March of 2007. The video appears to be recorded about a year ago.

(MUSIC)

LEMON: Friday trading getting under way on Wall Street, opening bell in just moments. Things could be looking up, thanks to a deal reached at Europe's debt crisis summit.

Christine Romans is back now watching things in New York.

We'll probably be talking just as the bell goes. What's going on?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Well, all 17 nations that use the euro as their currency have agreed that they will move toward greater fiscal unity which means they'll have more aligned policies for taxes and spending and budgets and that they'll abide by these rules. You know, there have been treaties in place meant to keep these countries, you know, cue in line in how big their debts and deficits can be, and there have been a lot of exceptions made over the years.

And so, now, this is the 17 core countries and six other countries who want to join the euro eventually all agreeing that they are going to be within this framework -- work out a framework.

Now, notably absent is another country that's in the European community but not in the euro, and that is the U.K., Britain. David Cameron, the prime minister, saying, you know what? There weren't protections and safeguards for his country and he can't sell it to his people, so he's going to say you guys go it alone but we're not going to be part of this, we'll stick by the original treaty.

That's a fly in the ointment going forward here. But most of those who were involved, the 17 core eurozone nations, Don, they say that they are moving in the right direction.

Now another -- separately, another thing here is that these European countries are going to be giving $200 billion to the IMF, to the International Monetary Fund, that's to help in any bailouts if they have to save Greece, Spain or Italy. Another reason markets overseas are a little optimistic.

We're looking for futures -- futures have been higher. We are looking for a little bit of a higher open here. But I'll tell you, Don, it's pretty unpredictable, how markets have been reacting to all of these two steps forward, one step back, three steps forward, two steps back in Europe.

So I want to caution that the Dow at any given time is a temperature for stock investors but we're looking at a lot of different things around the world, looking at commodities markets that are down, gold is coming down, oil's been coming down. We are also watching the capital markets, credit markets, what's happening in bonds for some of these countries. It is a very complicated and complex web of financial markets. Dow is just one of them but the Dow right now back above 12,000.

So, we'll see if it holds to the end of the day, Don.

LEMON: You took the words right out of my mouth -- trading above 12,000. And it's on the plus side now, at 49, 55 now, it keeps going up.

Listen, we always like to jump ahead, you know that. You told us about today. What's the outlook for next week?

ROMANS: You know, we're interesting. We're winding up into the end of the year, too, and that's what's so -- this is kind of a critical and, I don't know, treacherous time overall when you've got people making their financial end of the year decisions and the like.

But this is really important about the payroll tax holiday in the U.S. that's something that hasn't managed to pass this week but a lot of people are looking to what they see as a dysfunctional Congress to see if they can get their act together, Don, and show some sort of stability or unity on what kind of near-term deficit reduction we're going to have but also stimulus. Some people think that payroll tax holiday would be stimulative and that we need 160 millions will have a smaller paycheck next year if we don't do it.

Yu know, something else is interesting, Don. Since the U.S. lost its AAA credit rating and was put on watch that it had to get its act together, it's done nothing to do that. So, while the eyes are on Europe, there will be this look at the U.S. again eventually here where the world wants to know what we're doing to get our financial house in order. So far we've done nothing.

LEMON: Of course, thank you. It makes sense. We appreciate it, Christine.

All right. Time now for some politics. Just 3 1/2 more weeks until the Iowa caucuses. The Republican candidates are getting ready for a big debate there tomorrow on Saturday. This time, Newt Gingrich is the one to beat. And you have to think, things could get lively between him and Mitt Romney, don't you think?

But look at Ron Paul's numbers. Look at Ron Paul's numbers. He's not far behind Romney and lately he's been bashing Gingrich.

So, let's talk about all of this with John Avlon from "Newsweek" and "The Daily Beast."

John, we have seen so many front-runners -- good morning, by the way. We've seen so many front-runners come and gone. Is Ron Paul going to -- is this Ron Paul's turn now?

JOHN AVLON, CNN CONTRIBUTOR: Well, if this was a rotating game of musical chairs, it would be Ron Paul's turn next. The question is whether the music will stop before he gets his shot. Each of the GOP alternatives to Mitt Romney that have surfaced have around five weeks roughly on top. Michele Bachmann, Rick Perry, Herman Cain, now Newt Gingrich. But Newt seems to be in the poll position at the right time, solidify support behind him.

But as you pointed out, Don, you know, Ron Paul is strong in these polls. He is second in many polls. His supporters are intense, they are committed and they could upset a caucus. So, no one should count Ron Paul out. He's in that winner's circle in the top three considerations.

LEMON: Interesting. And, you know, he is -- Ron Paul quite honestly is a likable guy. He's kind of like everyone's dad, depending on -- your granddad, right? You may not agree with his politics but he is an affable, likable guy.

Let's talk about Romney, though. Romney's rather passive aggressive attack on Gingrich's past marital issues. Are we going to see him getting more aggressive and less passive?

AVLON: Yes. The Romney camp is regrouping, they're retrenching. They know they've got a problem. Newt Gingrich is pulling away in many polls. He's developed a sizable lead.

So, what you're seeing is the Romney camp doing two things. On the one hand, they are trying to humanize their candidates, putting out the ads, show him as a family man, someone who's very relatable -- as you said, an implicit diss, that Newt Gingrich's familial record. The second bit is they're attack -- they're releasing their surrogates to attack Newt Gingrich.

Last night on "OUTFRONT" with Erin Burnett, John Sununu, a Romney surrogate, was on, and it was fascinating, the line of attack they're choosing. They're trying to say that Newt Gingrich is not conservative enough and a flip-flopper, precisely the arguments that Mitt Romney's opponents used against him.

So, it's fascinating. It is a little bit desperate, but you're going to see the Romney camp playing offense hard core over the next couple of weeks.

LEMON: It appears the strategy, and you and I have talked about this. It appears the strategy had been for Mitt Romney just to sort of sit back and let the crazy play out, so to speak, around him. But then people are wondering, where has he been? He hasn't been on a morning show, what-have-you.

And now, all of a sudden, he finds himself in second place in many polls. And probably didn't expect it. Bad strategy on his part, on his team?

AVLON: Absolutely. Look, this is the inevitability implosion, you know? When you try to turn to the inevitable candidate, you start playing defense, you try to stay above the fray, you don't talk to the media, you get out of practice and guess what? Mitt Romney woke up as Hillary Clinton did four years ago realizing he's got a real problem.

So, all of a sudden, not only is he playing offense, he's going to be talking to the media. His last outgoing with Bret Baier, though, was a disaster.

LEMON: Yes.

AVLON: He fumbled and got rattled by some pretty predictable questions.

LEMON: Yes. And you can --

AVLON: But he's going to be playing offense across all fronts right now because he's got a real problem he needs to address. He cannot lie back because he will lose if he does.

LEMON: And you can see it in his body language. He sort of moves around, smiles, and crosses his legs, oh, this is an unusual interview.

Hey, listen, I want to talk about this. Let's talk about that Rick Perry ad where he talks about gays in the military and Obama's war on religion. It's gotten a lot of criticism.

And could it end up -- it might be -- is it backfiring on him?

AVLON: It could backfire. Look, it is a desperate play and attempt to rally evangelical conservatives in the Iowa caucus around his candidacy because he sees that as the only play he has. One his strategists, his name is Nelson Warfield, pushed this ad, saying that this was the good thing to do, but there was apparently division within the Romney camp -- within the Perry camp over whether this was wise and decent.

Keep in mind, I mean, this is the sort of rhetoric you hear from activists a lot, Obama's war on religion. But you don't hear it from presidential candidates or Texas governors. And I do think it is actually diminished his candidacy. He seems small because he's getting -- playing that gutter ball.

And certainly the lines about gays in the military contrasting with Christmas, it is controversial. We'll see if it helps him solidify support, but I think it is a desperate and personal and sort of disgusting play.

LEMON: Yes, you have to remember. Gays have gone and fought war, lost their lives, put their lives at risk, and then, you know, he's seen as a presidential candidate attacking them. Maybe not such a good strategy.

Hey, thank you very much. I want to tell you this, John, and our viewers, we're going to have Rand Paul coming up in the next hour. He's going to tell us about Ron Paul, his chances and him possibly run is as a third party candidate. We'll talk to Rand Paul in just an hour here on CNN, not quit. Next hour, as a matter of fact.

New numbers this morning on how many soldiers cremated ashes ended up in landfills instead of being buried properly. The scandal erupted in the spring and today is the deadline for a military report on exactly what happened. Live from the Pentagon, next.

(COMMERCIAL BREAK)

LEMON: Today's the deadline for the secretary of defense to hand over all documents related to how remains of fallen troops were handled at Dover Air Force base. A congressional committee is conducting an investigation into how soldiers' ashes ended up in landfills.

The scandal first erupted last spring when a whistle-blower sent a letter to a soldier's widow.

Pentagon correspondent Barbara Starr joins us now with new figures on just how many troops' remains ended up in a landfill.

Terrible story, Barbara.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Oh, good morning, Don. Absolutely. This now much wider a problem than the Air Force first publicly acknowledged.

But, first, you are right, 5:00 p.m. today is the deadline for the Pentagon to submit document to the House Oversight Committee on Capitol Hill. The Pentagon says they will do it this morning. Defense Secretary Leon Panetta will offer the documentation that he has about what has happened, how many troops involved, what the procedures and policies were, what the steps have been taken to correct the situation, everything that is going on.

But fundamentally now the Air Force is acknowledging much wider than originally believed. At first, they said just a handful of troops remains had been cremated, incinerated, and then buried in landfills.

But listen to the new statistics now that the Air Force has reviewed all of its records. Body fragments linked to 274 fallen, body fragments they've been able to identify buried in landfills. Another 1,762 not fragments, not able to be identified. So they don't know how many fallen are linked to those -- also incinerated and buried in landfills, essentially as medical waste.

Now this all stopped in 2008, and now these types of remains are buried at sea but this still is a brewing controversy. A lot of upset certainly amongst families and amongst the veterans groups as well.

LEMON: Well, as you can imagine, you said it stopped in 2008, now they are buried at sea. But what is the next step here?

STARR: Well, Panetta has in fact appointed an internal panel to look at all of this. It is headed by retired General John Abizaid, who used to be the head of the U.S. Central Command. Their first meeting will be next week and they are going to take a look at how all of this unfolded inside the military and whether other steps and measures need to be taken.

But I just want to briefly say, there is also information for families who feel they might be affected. The Air Force has set up a call center. There is a phone number, 1-855-637-2583, or e-mail at dover.pm@pentagon.af.mil. Military families who are concerned about the situation can contact either of those places -- Don.

LEMON: Barbara Starr, thank you so much.

This morning for the first time, we are seeing a hostage tape of retired FBI agent Robert Levinson. He's pleading for help. He vanished in Iran nearly five years ago. We'll play that tape for you next.

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LEMON: We're going to take you cross-country right now.

In Portland, Oregon a man is in the hospital after a taxi cab slammed into his hotel room yesterday. Police believe the driver had a medical emergency prior to the accident. He was treated and released but the hotel guest at last report was in critical condition.

In Atlanta, for the first time in 86 years, the secret formula for the iconic soft drink Coca-Cola, we just call it Coke, has a new home. Officials moved it from a bank vault where it's been kept since 1925 to its own vault in the Coca-Cola Museum. Got to keep that formula safe.

Holiday lights and love were in the air Wednesday night in Oklahoma City. Oh, one knee. You know what's happening here. Sandberg (ph) asked his girlfriend the ultimate question -- will you marry me? Guess what -- she said -- well, judging from her reaction, you can see. It was a yes.

$20,000. $20,000. $20,000, that's the New Year's Eve price tag for a table next to Kim Kardashian. Kareen Wynter, our -- Kareen can't we just make it stop? Please, please make it stop. KAREEN WYNTER, CNN CORRESPONDENT: You know, just for you, Don, on this Friday, I know we're buddies, we're friends. We go way back and I know how much you love talking the Kardashians. So we had to just cap off the busy week with Kim. And here you go, ok. More Kim than you can handle this Friday morning.

Kris Humphreys he gave Kim Kardashian an engagement ring worth an estimated $2 million. And that marriage Don I know you counted the days it only lasted 72 days. I don't think $20,000 is going to get it done though but the $20,000 will get you close enough to Kim and maybe see who's she kissing at midnight.

According to RadarOnline the 31-yearold soon to be divorcee she'll be ringing in the New Year at Las Vegas hotspot, Tao (ph) inside the Venetian. And Don, while tickets for the event are $200 a head. Radar says $20,000 will get you the table next to the Kardashian party. How fun would that be? And that of course includes an open bar and a champagne toast.

Tao, of course, has hosted birthday parties and other events for Kim. And they usually Don, they pay her pretty well for this privilege.

Reports are that Kim has gotten up to $25,000 an hour in the past to appear at the club. So it should be another profitable New Year for Miss Kardashian. It's good news, huh?

LEMON: Oh, yes. Ringing in the New Year.

WYNTER: I love you have it.

LEMON: Lovely. Lovely just a little bit in my mouth.

WYNTER: Yes. Just a little bit.

LEMON: All right and finally, an interesting choice for an actor to play disgraced Washington, D.C., Mayor or to play disgraced Washington D.C. Mayor Barry. This is going to be interesting to watch this and see how he does it.

WYNTER: Yes, it could be pretty good TV, Don. There are reports this morning that Eddie Murphy, a big name, will play the long-time Mayor in an HBO film. And that's not all according to the "Washington Post", the film would be directed by none other than Spike Lee.

The "Post" says this isn't the first time Don, someone has tried to make a movie on the long-time mayor who was infamously caught on camera smoking crack cocaine. Now the "Post" says there was an effort a few years ago in 2002 to produce a film about Barry starring Jamie Foxx but it all fell apart so we'll have to see if this effort makes its way on to our TV sets.

But Barry was mayor for D.C. for almost 20 years getting re- elected even after the drug arrest that turned him into a national punch line. And he still serves on the D.C. city council. Plus during the civil rights era, Don, a young Marion Barry who was part of the student nonviolent coordinating committee. He was also involved in the Freedom Ride.

So you know you hear it -- you can hear that you know what I'm just describing, that there's really quite a bit of story to tell about his life but it could, it could make for good TV.

LEMON: Yes it could -- very rich role -- rich for an actor.

WYNTER: Would you watch? Would you watch?

LEMON: Absolutely, I would. Of course I would watch. And regarding the Kardashians, we kid because we, I don't know.

WYNTER: We love them? We kid because we love them?

LEMON: Yes.

WYNTER: Yes, ok. I thought I heard that.

LEMON: See you soon.

WYNTER: Bye, Don.

LEMON: More "Showbiz" headlines from Kareen next hour when she takes you behind the scenes at the legendary Shrine Auditorium where this year's annual CNN Heroes special takes place on Sunday night.

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LEMON: We're going to "Fast Forward" now and tell you about some stories making news later today. Republican presidential candidate Mitt Romney speaks in Cedar Rapids, Iowa, around 11:35 Eastern Time.

GOP presidential hopeful Newt Gingrich has a 4:00 p.m. book signing in Washington.

And Republican presidential candidate Ron Paul holds a youth rally at the University of Northern Iowa at 8:00 this morning.

We are following lots of developments in the next hour of the CNN NEWSROOM. Let's check in first with Chris Lawrence. Hi, Chris.

CHRIS LAWRENCE, CNN PENTAGON CORRESPONDENT: Hi, Don. Yes Ron has released this video. What it says is in an intact U.S. stealth drone, it set off an CSI-style investigation to figure out is it real or fake. We'll dig into that next hour.

JILL DOUGHERTY, CNN FOREIGN AFFAIRS CORRESPONDENT: I'm Jill Dougherty at the State Department. Missing for almost five years after he disappeared in Iran, a videotape of former FBI agent Robert Levinson is now on the Internet and we have details at the top of the hour.

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: I'm Elizabeth Cohen in Atlanta. Michelle Duggar pregnant with her 20th child has a miscarriage. We'll be talking about that at the top of the hour.

LEMON: All right, thank you very much, everyone.

Also next hour, as Ron Paul ramps up his attacks on Newt Gingrich his senator son joins in. Rand Paul joins us live to talk about the 2012 race.

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LEMON: NBA commissioner David Stern has rejected a trade that could have sent Chris Paul to the Lakers. The all-star guard has been looking to get out of New Orleans and Laker fans were salivating over the idea of Paul playing with Kobe Bryant. One hour after the deal was announced the NBA killed it. The league owns the New Orleans Hornets and decided the deal wasn't in the team's best interest.

Ok. The legendary life of Hollywood icon Elizabeth Taylor is going up for sale. Jeanne Moos has a look at prize possessions that could be yours during an auction next week.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): Liz Taylor is eyeing her own auction. She is eyeing her jewels. She is eyeing the line of people waiting to get in at Christie's. She is watching your back as the clothes off her back go up for bid. From her beaded Versaces --

UNIDENTIFIED FEMALE: I do like the chorus line of caftans.

MOOS: Or, maybe you'd prefer to own her tiara. The one given to her by husband number three, film director Mike Todd, who said --

RAHUL KADAKIA, CHRISTIE'S HEAD OF JEWELRY: Elizabeth, you are my queen, you must have a crown.

MOOS: You can even bid on her wedding dresses. She wore yellow the first time she married Richard Burton, a hippy caftan the second time she married him, her fifth husband.

UNIDENTIFIED FEMALE: By that time, he wore (INAUDIBLE)

MOOS: But she never ran out of diamonds.

KADAKIA: It's the size of a cherry.

MOOS: Richard Burton gave it to her.

KADAKIA: And she would call it her baby because she wore it every single day.

MOOS: She even wiggled it at Larry King.

(on camera): Most people have a jewelry box. What did she have?

UNIDENTIFIED MALE: She had a jewelry room. MOOS (voice-over): Christie's created a mock-up featuring all of her jewelry boxes with her labels. For instance, the ping pong diamonds from a match she played with Burton.

KADAKIA: He said, "Elizabeth, if you beat me by ten points or more, I'll buy you a diamond."

MOOS: She won. He bought her three.

Looking for something a little cheaper? Imagine slipping into Elizabeth Taylor's Daisy hot pants. She wore this outfit at the age of 39, the day she first became a grandmother. They're not just hot pants.

UNIDENTIFIED FEMALE: They're kind of like where's the fire engine.

MOOS: You can even bid on her size 10 shoes. The very feet that stomped on a fellow who insulted her in "Butterfield 8". The auction includes her portrait by Andy Warhol and a monkey necklace that Michael Jackson gave her.

UNIDENTIFIED MALE: She said they're great. These monkeys are like Michael and myself. We're such great friends.

MOOS: So close that her boa once got stuck in his sequin jacket.

If your neck is starting to feel weighed down.

(on camera) : This is for those that can't quite afford the real thing.

KADAKIA: Well, it's a great Christmas gift.

MOOS (voice-over): Christie's is selling paper cut-outs of Liz Taylor jewels for $25. It seems as if every possession like this 500- year-old pearl comes with a great Liz Taylor story attached.

KADAKIA: She almost lost it and they found it in her puppy's mouth.

MOOS: The only thing more glittering than her diamonds were the flashbulbs.

Jeanne Moos, CNN, New York.

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