Return to Transcripts main page
CNN Newsroom
Facebook's Biggest Week Ever; JPMorgan CEO under Fire for $@ Billion Loss; Same-Sex Marriage Dominates Talk; Gruesome Discovery in Mexico; John Edwards' Defense Begins Its Case; Major Shakeup at JPMorgan After Losses; "Avengers" Rule the Box Office; Third Travolta Accuser Emerges
Aired May 14, 2012 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Good morning, Brooke. Thank you.
Happening right now in the newsroom a multibillion-dollar birthday gift and it's not a hoodie or a sneakers. Mark Zuckerberg, the 28-year-old American success story, opening a present called IPO which could make Facebook worth $100 billion.
From a birthday to a blunder. JPMorgan Chase taking a bet and losing big time. Heads already rolling this morning. The CEO now saying his bank was sloppy and stupid.
Manhunt. FBI agents Stephen Ivens missing in the mountain. California now sending bloodhounds for the search.
And cover story. "Newsweek" going controversial with a picture of President Obama calling him the first gay president complete with a rainbow colored halo. Let me repeat that. A rainbow colored halo. So we're asking this morning while social issues are in the headlines, why isn't anyone talking about the number one issue? The economy.
NEWSROOM begins right now.
And good morning to you. I'm Carol Costello.
He is young, rich, and powerful and this morning some startling reminders of just how high Mark Zuckerberg towers over mere mortals like you and me. Later this week you might be able to buy stock in Facebook, his college dorm room project that may now be worth some $100 million. That's a higher market value than corporate goliaths like Disney or even Ford.
Zuckerberg will be meeting with shareholders in Chicago in Denver starting today.
All this week, we're covering the Facebook phenomena in depth. We begin with Silicon Valley correspondent Dan Simon.
(BEGIN VIDEOTAPE)
MARK ZUCKERBERG, CEO, FACEBOOK: Gosh. OK. I'm glad this isn't live. DAN SIMON, CNN SILICON VALLEY CORRESPONDENT (voice-over): It was 2006, about two years after launching Facebook from his Harvard dorm. A nervous and camera shy Mark Zuckerberg.
ZUCKERBERG: Sorry. Can I start that a different way?
UNIDENTIFIED MALE: Sure.
ZUCKERBERG: Feels like so numb today.
(LAUGHTER)
SIMON: Sits down for a CNN interview.
UNIDENTIFIED MALE: Mark, can just say your name and pronounce it so nobody messes it up and we have it on tape if --
ZUCKERBERG: Sure. It's Mark Zuckerberg.
UNIDENTIFIED MALE: How would you like to be identified? Your title --
ZUCKERBERG: Founder and CEO.
SIMON (voice-over): Outside of Silicon Valley he was such an unknown quantity that our producer had to ask the most basic of questions.
UNIDENTIFIED MALE: How did the company start?
ZUCKERBERG: Well, didn't start as a company. I was a sophomore at Harvard and we needed to -- I guess -- I haven't really been asked how the company was started before.
(LAUGHTER)
UNIDENTIFIED MALE: How did Facebook start? Good answer.
ZUCKERBERG: I'm a little embarrassed. You would think that I would have been asked that like a ton of times.
SIMON: Speaking wise? He may have been rough around the edges. But even then, it was clear Zuckerberg had a laser-like focus of what he wanted Facebook to become.
ZUCKERBERG: We view the site as sort of an information directory. It helps you better understand what is going on around you and once you're better informed about the people around you and what's going on, you're in a better position to meet people, connect with all of these people.
SIMON: Like Bill Gates and Steve Jobs before him, Zuckerberg is one of those rare CEOs whose pioneering accomplishments, fame and persona make him an especially compelling figure.
DAVID KIRKPATRICK, AUTHOR, "THE FACEBOOK EFFECT": In private I think Mark is pretty entertaining, engaging fellow who's funny, who's got a lot of friends.
SIMON: David Kirkpatrick is what you might call a Facebook historian. Author of the best-selling book, "The Facebook Effect.
KIRKPATRICK: He is much more relaxed in private than he is in public. I don't think even to this day he really would like to be as much of a public figure as he is. And if it were up to him, he'd never be on a stage. He mostly just be sitting in front of a computer coding because that's what he loves to do.
UNIDENTIFIED MALE: Do you see Facebook as your dream job or a steppingstone to something else?
ZUCKERBERG: It's definitely not a stepping stone. I don't necessarily think about what my dream job would be, but I guess this is pretty cool. I get to build what I want. That's awesome.
SIMON: It's interesting to get a glimpse of Facebook's small office back then. Notice the newspapers on the desk. It was only six years ago, but this was pre-iPhone and iPad. But one thing that hasn't really changed -- Zuckerberg's attire. T-shirt and sandals, also unchanged, and, most important.
ZUCKERBERG: Hi. I'm Mark Zuckerberg, founder of Facebook, an online social directory.
SIMON: His core vision for the company. To use technology to connect people to their friends.
ZUCKERBERG: I'm not building a company for the sake of building a company or because I think it's a good way to make a lot of money. I think that the philosophy that this company has is that you solve an important problem and then you have the ability to have a good business, but the basis of all that is solving an important problem.
(END VIDEOTAPE)
COSTELLO: Oh, but as he takes his company public, he is going to make lots and lots of money.
Dan Simon is live in San Francisco.
So, one question. You know, as Zuckerberg takes his company public, he's got to impress these big-time financial guys. So will he be wearing his hoodie and maybe flip-flops or will he be in a suit and tie?
SIMON: You know, I think he is going to wear the hoodie. You know he's worn it the entire time as he has taken this road show to the investors.
And don't you just love the fact that our producer at that time, Carol, asked him if Facebook was a stepping stone? I mean that is a classic piece of video. But I think you raise an important -- I think you raise an important point here. You know, he has been so focused over these past few years just trying to build this business. He's done whatever he wanted to do in terms of developing the product.
But now, for the first time, he has to worry about quarterly profits and so I think people who are observing this company are wondering if that's somehow going to to change him and if that's going to change Facebook, and if it does change Facebook, they hope that it doesn't, you know, dampen the innovation that we've seen over the past few years -- Carol.
COSTELLO: Well, we'll be watching all week long. Dan Simon reporting live in San Francisco this morning.
Now let's turn the page to a textbook case of how not to do business. Just days after revealing that the nation's largest bank lost $2 billion in risky investments, JPMorgan's top man faces new fallout. A government watchdog on the bank bailout says CEO Jamie Dimon should resign from the New York Federal Reserve Board.
Elizabeth Warren says the move would shore the public trust still rattled from the 2008 financial meltdown.
(BEGIN VIDEO CLIP)
ELIZABETH WARREN, TARP OVERSEER: There has been a guerrilla war out there in which the largest financial institutions have been doing everything they can to make sure that financial regulations don't get put in place and if they do get put in place, that they are loaded with loopholes and not very effective.
(END VIDEO CLIP)
COSTELLO: Alison Kosik is at the New York Stock Exchange. Any chance Jamie Dimon will resign from that board?
ALISON KOSIK, CNN CORRESPONDENT: You know your guess is as good as mine with that. If the calls go stronger and stronger it may very well happen. But look. These new regulations that Elizabeth Warren talks about, these are what's known as the Volcker Rule. They look to sort of reign in these risky bets that these banks could or have been making. These rules kick in in July.
Now the -- the irony in this, Carol, is that these big banks have actually spent millions of dollars lobbying against this tougher oversight because they say it's not effective. But Dimon does say he's -- he actually says he's not against all of it, just some of it. He spoke over the weekend on NBC's "Meet the Press." Listen to this.
(BEGIN VIDEO CLIP)
JAMIE DIMON, CEO OF JPMORGAN: We have supported 70 percent or so of Dodd/Frank. We supported resolution authority, we support higher capital liquidity, JPMorgan always has higher capital liquidity, that's to partially make up for mistakes and problems and, you know, obviously, it's a tough economy. We support an oversight committee, we support some of the compensation, new compensation rules that we already followed most of them. So we support a lot of it.
(END VIDEO CLIP)
KOSIK: Well, he supports a lot of it. He -- obviously, he doesn't support all of it and the problem with this, Elizabeth Warren says, is you know what, banks shouldn't be managing their own risk. They need more oversight. In fact she says these banks need to move to what she calls boring banking meeting separating their retail banking from the risky trades that banks do with their own money known as propriety trading.
The issue is -- she says is that it's easier said than done because there's a lot of gray area in this. Now JPMorgan says it was protecting against possible losses in other areas. Clearly it didn't work in their favor on these trades -- Carol.
COSTELLO: Alison Kosik live at the New York Stock Exchange.
To politics now. While the poll show the economy remains issue number one for most Americans, it's not necessarily what President Obama and Republican rival Mitt Romney are talking about to the class of 2012.
Today, in New York, the president is expected to speak about women's issues when he delivers the commencement address at the all- female Barnard College. Women helped him win in 2008 and he is hoping they'll do the same this time around. As for Romney, he's trying to win over social conservatives, a crucial part of the GOP base. He spoke to the graduating class at Liberty University on Saturday. It's the nation's largest evangelical university.
And let's not forget the other big social issue. The debate over same-sex marriage. This "Newsweek" literally cover puts it front and center. It shows the president with a rainbow halo over his head and calls him the first gay president.
The new issue of "New Yorker" also makes reference of the president' s historic decision in support of same-sex marriage. And features rainbow colored columns at the White House.
Joining me now is White House correspondent the president's support of same-sex marriage and features rainbow colored columns at the White House.
Joining me now is White House correspondent Dan Lothian.
So we don't know what will exactly will be in the president's commencement speech before the women of Barnard College, but do you suppose he'll pivot it all and talk about the economy?
DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: Well, the president always has the economy as part of all of the speeches that he delivers. But you're right, you know, this social issue, same-sex marriage has been something that has been discussed quite a bit, and this cover, in particular, "Newsweek," quite provocative giving folks a lot of things to talk about.
Andrew Sullivan is the writer of that "Newsweek" cover story and he goes into what he believes is the importance of what the president did and what was behind the president's decision. And what's interesting about all of this is it comes just after a weekend where across the country you saw in pulpits and African-American churches, a real sort of disconnect and a divide over what the president did.
Some who supported the president in 2008 now pulling back the support because they disagree with Mr. Obama on this issue. Others clearly stating that they disagree with the president but still plan to support him, but as you pointed out, it's interesting that this continues to be getting so much of the focus when most Americans really care about the economy and when you look at the polling down at the bottom is this issue of same-sex marriage.
Now the question is, how will this impact President Obama in the upcoming election? And the latest poll from Gallup shows probably not a whole lot. When asked whether or not they would -- voters would be more or less likely to support the president because of what did, more likely 13 percent, less likely 26 percent, no difference at all, 60 percent.
But this will continue to be the topic of discussion for some time to come.
COSTELLO: Dan Lothian live at the White House, thank you.
Before we leave the world of politics we'd like to leave it laughing. If you caught "Saturday Night Live" you know what I'm talking about. Vice President Joe Biden and former president George W. Bush reunited in all of their glory.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I'm just so sick of the way presidents are always riding me. I mean I'm an adult.
UNIDENTIFIED MALE: Hey, hey, I've been there. I've been there. I used to catch grief all the time from President Cheney.
I'd be in the oval office hooking up the Slurpy machine, settling into a "Charles in Charge" marathon. That penguin would come waddling in and yell, get your damn pants on. We're about to bomb, blah, blah, dibbly blah, blah.
(END VIDEO CLIP)
COSTELLO: That's funny.
Florida A&M's Board of Trustees meet today. Topping its agenda, does the school's famed marching band deserve to play again after the hazing related death of a band member?
(COMMERCIAL BREAK)
COSTELLO: Fifteen minutes after the hour. Checking our top stories.
Mark Zuckerberg's Facebook is expected to start selling stocks to the public this week, for the very first time. The initial public offering could value this company at more than $100 billion. Zuckerberg turns 28 today. Yes, it's his birthday. He cofounded Facebook in his Harvard dorm room in 2004.
Florida A&M University's board of trustees meet today to talk about the future of the school's marching band. The band has been under suspension since the hazing related death of drum major Robert Champion. Thirteen people face charges in connection with the death. The band's long time director Julian White resigned under pressure last week.
A massive manhunt under way near Burbank, Florida, for a missing FBI agent said to work on national security type cases. Thirty-five- year-old Steven Ivans is believed to be suicidal and possibly carrying a handgun. Police do not think he's a threat to anyone but himself, but urged the public not to approach him. The agent was last seen by his family Thursday night.
A gruesome discovery on a major highway in Mexico, some 80 miles southwest of the U.S. border. The mutilated remains of at least 49 bodies were found in garbage bags. The area has been a battleground for two drug cartels but officials say the victims could be immigrants.
(BEGIN VIDEO CLIP)
ANDRIAN DE LA GARZA, NUEVO LEON STATE'S ATTORNEY (through translator): In the last few days, we haven't had reports of large numbers of missing people. That's why we believe there is a possibility that the victims could be from a different state or migrants. We are not ruling out any possibility at this point.
(END VIDEO CLIP)
COSTELLO: We want to bring in CNN's Rafael Romo.
Oh, such a terrible story. It seemed like the violence was dying down a little but then this happens.
RAFAEL ROMO, CNN SENIOR LATIN AMERICAN AFFAIRS EDITOR: Exactly. It's incredible. It's not only the way the victims were killed. It's just that whoever did this was trying to send a message. All of the bodies decapitated and mutilated and hands missing, feet missing.
So the message there was very strong. Right next to the body there was a message, a graffiti on a wall claiming that the organization known as Los Zetas was not responsible for this. But, of course, it's really not confirmed and authorities are looking at all of the possibilities at this point.
COSTELLO: So, do we know who the victims were? Were they immigrants?
ROMO: It is not known. The two possibilities are the one you mentioned there could be migrants from Central America -- that has been a corridor for migrants trying to reach the United States for many, many years. The other possibility is that it may be part of this turf war between two very powerful criminal organizations in a part of Mexico. We're talking about the cartel known as Los Zetas and the other one known as the Gulf cartel.
COSTELLO: So Americans planning a trip to Mexico this summer, should they be worried, more worried?
ROMO: Well, there is no indication, according to authorities, that this particular attack was directed at civilians, domestic or foreign. There have been several warnings issued by the Department of States about traveling to border states in Mexico.
But on the other hand, you also have to look at tourism numbers in Mexico. Americans are still flocking to Mexican beaches as well as Canadians and Europeans. For the most part, those places that people know very well remain safe. It is those border states south of Texas, south of New Mexico and Arizona that have been have become very violent.
COSTELLO: Rafael Romo, thanks very much.
Still ahead your chance to talk back. Today's question: why aren't the presidential candidates talking more about the economy?
(COMMERCIAL BREAK)
COSTELLO: Twenty-two minutes past the hour.
This morning, John Edwards' defense team begins presenting its case in his corruption trial. The former Democratic presidential candidate has pleaded not guilty to violating campaign contribution laws. Prosecutors say he used hundreds of thousands of dollars in campaign money to conceal his affair with Rielle Hunter.
Joe Johns previews the defense.
(BEGIN VIDEOTAPE)
JOE JOHNS, CNN SENIOR CORRESPONDENT: Carol, the defense is expected to start putting on its own witnesses and testimony in the John Edwards campaign finance trial. Among the first in a handful of witnesses who could be called to the stand by the Edwards defense team, Wade Smith, a long time North Carolina attorney and friend of John Edwards.
Testimony came in earlier in the trial suggesting that Wade Smith said John Edwards knew that some of the hush money coming in from a wealthy benefactor was for Edwards benefit. The money and question at the center of the case was used by Edwards "fixers and to pay expenses for his mistress Rielle Hunter and her baby girl Quinn.
The question is whether the money should be considered a campaign contribution to support Edwards political aspirations or if it should be considered a private gift.
The defense is putting on its case after the prosecution rested and the judge refused on Friday to dismiss the case. Other witnesses who could be called include a woman who handled campaign finance disclosure reports to the Federal Election Commission and a former pollster and political adviser to Edwards.
Still no indication whether Edwards himself or his mistress Rielle Hunter will testify. Some legal experts say either move could be risky for the defense -- Carol.
(END VIDEOTAPE)
COSTELLO: Now is your chance to talk back on one of the big stories of the day. The question for you this morning, why aren't the presidential candidates talking more about the economy? Politicians seem to keep talking about social issues like a supposed war on women or same-sex marriage.
Today, President Obama will speak at Barnard College for women and tape appearance for "The View" and attend a fund-raiser for Ricky Martin. I don't think the economy is front and center at that event. This comes after Mitt Romney's speech to students at evangelical Christian college, Liberty University, where he drew a line in the sand on the subject of marriage.
(BEGIN VIDEO CLIP)
MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: Marriage is a relationship between one man and one woman.
(END VIDEO CLIP)
COSTELLO: Keep in mind those same liberty students could have a tough time find ago job in this economy. When the candidates do talk about the economy, it's often to attack one another. Like the new Obama campaign ad featuring steel workers who say Romney's Bain Capital firm cost them their jobs.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I was devastated. It makes me angry. Those guys were all rich. They all have more than they'll ever spend, yet they didn't have the money to take care of the very people that made the money for them.
UNIDENTIFIED MALE: Bain Capital walked away with a lot of money they made off of this plan. We view Mitt Romney as a job destroyer.
(END VIDEO CLIP)
COSTELLO: In speeches, Mr. Romney talks about Obama being to the left of Bill Clinton. A CNN/ORC poll shows 53 percent of the Americans say the economy, not social issues, is the most important issue facing the country today.
But what are they hearing? Recently from the president about homeowner and student loan relief. From Romney about how the free market helps economic growth.
But Americans appear ready to hear big, bold plans on how to fix things. But will they?
So, the talkback question for you today: why aren't candidates talking more about the economy? Facebook.com/CarolCNN, Facebook.com/CarolCNN. I'll read your comments later this morning.
You better think twice before you pad your resume with a fib. That advice comes too late for a Yahoo's top man. Today, he has new reason to polish his resume.
(COMMERCIAL BREAK)
ANNOUNCER: This is CNN breaking news.
ROMANS: We just got this news in to CNN. We learned of a new casualty in the staggering $2 billion loss at the nation's largest bank. JPMorgan Chase chief investment officer is retiring in the wake of those risky investments. Ina Drew was with the company for more than 30 years.
Let's bring in Christine Romans. She's our business genius reporter.
So, has she -- it's interesting she is retiring. She hasn't been fired.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: No. She hasn't been fired. Jamie Dimon, the CEO of JPMorgan, careful, high up in his press release to praise Ina Drew and to say that she's been a great partner over her many years at the firm. "And despite our recent losses," he says, "in the CIO," that's the division that she ran in London, "Ina vast contributions to our company should not be overshadowed by these events." So, he is letting her retire for 30- some years and praising her in this press release.
But, clearly, you know, he is on the record saying these trades should not have happened. They were not vetted and they're not -- they didn't meet the Dimon rule kind of a jab on -- Volcker Rule -- but the Dimon rule of the kind of risks that this company takes.
So management changes there. Matt Zames is the new CIO. There are a couple of other people who'll be leaving as well. And people in London are sort of bracing to see what kind of other fallout there could be within this division.
We do know as well that the trading losses could swell another billion or so. We'll also watching that as well because a trade that turned against the company and we're told that some of my sources are saying some of these positions might be hard to get out of. You know, you can't reverse $2 billion in trading position overnight so something they have to try to do overall.
The stock was down 9 percent overall yesterday. We'll be watching it today, Carol, to see if it's down again. In the premarket, it was down a percent and a half when I checked an hour ago. So, we'll be looking to see if the banks get hit again here.
But one after another, people coming out and saying, come on, these banks are big, they are complicated. If Jamie Dimon could tell analysts concerns about this were tempest in a tea pot and then turn around and say it's a $2 billion trading loss -- if he didn't each know what was going on there, isn't that more evidence these banks are too big and too complicated?
Others will say, look. It's a $2 billion trading loss and the company made $19 billion last year and it hurt but they can absorb it -- Carol.
COSTELLO: Christine Romans, live in New York for us.
Checking other top stories at 31 minutes past the hour.
Mark Zuckerberg's Facebook is expected to start selling stock to the public this week for the very first time. The initial public offering could value his company at more than $100 billion. Zuckerberg, it's his birthday. He turns 28 today. He cofounded Facebook in his Harvard dorm room in 2004.
California Governor Jerry Brown announces a plan today to try to get a handle on the state's $16 billion deficit. A spokesman says Brown's plan includes a tax hike up to 3 percent for the wealthiest Californians, plus a sales tax bump over the next four years and cuts to health programs in other services. Lawmakers must approve a spending plan by June 15th.
Florida A&M's university board of trustees meet today to talk about the future of the school's marching band. The band has been under suspension since the hazing related death of drum major Robert Champion. Thirteen people face charges in connection with that death. The band's long time director Julian White resigned under pressure last week.
One of the best known companies on the Internet is looking for a new boss this morning. Yahoo has pushed out CEO Scott Thompson less than two weeks after it was discovered his resume claimed a college degree he did not really earn. And adding to the injury, the "Wall Street Journal" is reporting this morning that before resigning, Thompson announced he's been diagnosed with thyroid cancer.
Dan Simon is our Silicon Valley correspondent.
So what is going on? They pushed him out? Did they fire him? What happened? Did he resign? Do we know?
DAN SIMON, CNN SILICON VALLEY CORRESPONDENT: Well, officially, they are saying he is stepping down but I think it's very clear that he would have been forced out. You know, this whole storm was engulfing him and Yahoo and then he comes out and tells the board that he also has cancer at the same time. This is a very strange twist to the story.
Just a little background, just to remind everybody what happened here. His official biography on the Yahoo page said he had a college degree in accounting and computer science but he only had the accounting degree.
An activist shareholder by the name of Daniel Loeb discovered the error. He's been very upset with the way Yahoo! has been running things. He brought it to the media's attention. Everyone pounced and Yahoo! was forced to make a change here.
The ironical thing is Yahoo! is still a very popular Web site. It ranks number four in terms of the most visited Web sites. It's a company that still generates a ton of revenue but this is an enormous distraction for Yahoo! and they have suffered a huge beating in the press as a result of this incident -- Carol.
COSTELLO: So, Dan, we are wondering this guy was on the job for four months. Will he get a golden parachute?
SIMON: You know, we're not so sure about that in terms of the compensation package. I would imagine that he'll exit with something but, you know, he was only there for four months. A lot of shareholder angst in terms of the declining relevance of Yahoo!
As I said, there is still a very popular Web site but a lot of people don't know what this company stands for any more. It really hasn't changed over the years. They missed out on search which was, you know, dominated by Google. And also, they missed on social with Facebook and Twitter now.
So, what does Yahoo! stand for? They need to bring some somebody who's going to offer some direction and put the company towards a path toward success and growth which they haven't really had in the past few years.
So, whether or not they get behind this incident quickly remains to be seen but it certainly was an enormous distraction and Scott Thompson is now out.
COSTELLO: Dan Simon, live in San Francisco.
Coming up next, if the economy is the main concern of voters, why aren't we seeing some big, bold plans for the candidates?
(COMMERCIAL BREAK)
COSTELLO: The men running for president this year seem to keep talking about social issues, like the supposed ware on women, or same sex marriage. Even though according to a new CNN/ORC poll, 53 percent of Americans say the economy tops their list of the most important issues facing the nation yet the country is going bonkers over social issues.
The cover of "Newsweek" proclaims Mr. Obama is America's first gay president. He's not yet claimed he or Mr. Romney is the first recession-proof presidential candidate.
L.Z. Granderson is a CNN left-leaning contributor, on the right, CNN contributor Will Cain.
Welcome to you both.
WILL CAIN, CNN CONTRIBUTOR: Good morning.
COSTELLO: Good morning.
L.Z. GRANDERSON, CNN CONTRIBUTOR: Good morning.
I didn't know I was left-leaning. Thank you for clearing that up for me.
COSTELLO: Are you?
CAIN: You are.
GRANDERSON: She's in the middle.
COSTELLO: How do you -- I don't know. I'm just -- I'm the transparency morning. If I got it wrong, you tell me, L.Z.
GRANDERSON: It's all right.
COSTELLO: OK. So, L.Z., I was talking to some random people over the weekend. All of them say, you know, where is this big, bold economic plan from these two men running for president? Why aren't we seeing a plan?
GRANDERSON: Well, it's simple. There isn't a plan. What I mean by that there is no silver bullet. Our problems are complicated and it takes a complicated conversation and that can't package in a 30-second campaign ad.
There is not a single thing that is going to fix what is going on. So, that's why you don't hear it. You hear things are easily digestible which are the social issues.
COSTELLO: Right. I don't know. Voters seem to be angry about that, Will. I asked the question on my Facebook page this morning. I already got a hundred comments saying, exactly what L.Z. said, they don't have a plan.
But we want to see a plan.
CAIN: No. We don't. L.Z. is kind of right.
Economics is too complex, Carol. It's too tough. People can't really wrap their brains around it.
COSTELLO: Come on!
CAIN: What they want -- what they want is the economy to be better. Yes, they want it to be better but how you get from A to B, you know, that's the complex stuff we don't want to talk about.
Let's start talk about that gay thing again, and not talking about stimulus or austerity or tax reform. That's white noise and bad for conversation.
COSTELLO: So are you blaming the voters for this?
CAIN: Absolutely, I am! First of all, let me say this also. We have to correct misconceptions. But there is a bold Obama economic plan.
We talk all the time about this $800 billion stimulus and the prospect of what we call Keynesian economics, that the government would stimulate the economy. The truth is he's had a bold Keynesian plan for years now. We've been running a trillion dollar plus deficits for two to three years. That's stimulus by his theory, by Keynesian economics theory. The question whether or not it works.
Now, see, what are you ratings doing right now as I talk about that? You think people want to hear about this? They want to go back.
Can we talk about that gay marriage thing again, please? Can we do that?
GRANDERSON: Will, by the way, Will, I don't know what you define as working or not working. All I know is 12 months from President Obama got into office, there were job losses. For the past 26, 27 consecutive months, there have been job gains. So, I don't want what you quantify as working or not working. I do know the bleeding was stopped by the stimulus package.
Will is right. I mean, hat's boring stuff. We can go on and on measuring numbers and coming up whether this or that is better but that's boring stuff.
(CROSSTALK)
CAIN: One more thing. I won't bore you. Let me offer one more thing.
Voters don't like the answers. By the way, here is a conservative bold economic plan: tax reform. Simplifying the tax code but requires doing away with your mortgage interest rate deduction and the deduction for employer provided health care benefits. You think that's popular?
(CROSSTALK)
COSTELLO: I can think of a few other avenues of tax reform. But we can debate, and you're right. But maybe you're both right because all we see from the candidates on the economy are attack ads. In fact, the Obama campaign put out new attack ad on the web this morning.
Let's watch.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I was devastated. It makes me angry. Those guys were all rich. They all have more than they'll ever spend, yet they didn't have the money to take care of the very people that made the money for them.
UNIDENTIFIED MALE: Bain Capital walked away with a lot of money they made off of this plan. We view Mitt Romney as a job destroyer.
(END VIDEO CLIP)
COSTELLO: L.Z., this is, obviously, not a plan. It's attacking Romney for Bain Capital but it's not really attacking Romney's plan either.
GRANDERSON: Well, I think what it does do is just kind of give a perspective. What is one of my criticisms about Romney is that I think he is probably a very, very smart business person.
But you don't need to do a business person or -- in other words, we don't need a business person to run the country because a business person's job is make money, to cut the fat and move on and be as profitable as possible. When you're running a country, the fat happens to be the people and you still need to decide what is going to happen to people, and I don't see the compassion anything that Romney says about the fat, i.e., the people, that he trims and cuts.
I think that particular ad kind of illustrates that question about Romney, you know, will he be compassionate enough to care about the people who may have to be trimmed?
COSTELLO: Last word, Will?
CAIN: That's not an economic ad. That is an emotional ad.
Mitt Romney is not responsible for the job losses of steel workers. We have three times the output of steel -- I'm sorry, that's not right. We output more steel today than we did in 1970 at a third of the workers.
There is an economic message, not some ad to make you cry for guys who lost their job, which is sad but that is not the point of economics.
GRANDERSON: It's not just sad, it's reality, though, Will. It's not just emotional. It's reality.
CAIN: That's right.
GRANDERSON: It's the people who are out of work. They are not sad. They are Americans. And you got to have compassion for the Americans.
COSTELLO: See? I'm not bored any more!
CAIN: Are you not?
COSTELLO: No, I'm not.
CAIN: Are you entertained?
COSTELLO: Thanks to both of you. I was like -- I was thrilled with this little talk we were having!
Will Cain, L.Z. Granderson -- thanks as usual.
COSTELLO: They have done it again!
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: There was an idea, to bring together a group of remarkable people.
(END VIDEO CLIP)
COSTELLO: Oh, and are they remarkable? You betcha. "The Avengers" tops 1 billion at the box office. How long can it stay on top?
(BEGIN VIDEO CLIP)
JACKSON: Gentlemen? What are you prepared to do?
(END VIDEO CLIP)
(COMMERCIAL BREAK)
COSTELLO: It's just about 48 minutes past the hour. Checking your "Top Stories".
An early multi-billion birthday gift for Facebook founder Mark Zuckerberg who turns 28 years old today. His company is making its shares publicly available this week and that could make Facebook's value sear or soar rather to a searing $100 billion.
The shuttle "Enterprise" is a step closer to its final destination, the Intrepid Sea, Air and Space Museum in New York. Over the weekend the shuttle was separated from a 747 at JFK, next month the "Enterprise" will be hoisted on to a barge and taken to the retired aircraft carrier.
I'm telling you, there is no stopping these guys.
(BEGIN VIDEO CLIP)
ROBERT DOWNEY JR., ACTOR: No offense but I don't play well with others.
CHRIS EVANS, ACTOR: Big man in a suit of armor. Take that away, what are you?
DOWNEY JR.: Genius, billionaire, playboy, philanthropist.
(END VIDEO CLIP)
COSTELLO: Oh they're laughing all the way to the bank too. "The Avengers" break another box office record for its second weekend, $103 million domestically. After only 19 days in the theaters, it's already become a $1 billion -- billion with a "b", billion dollar blockbusters -- blockbuster, rather.
Accusations are piling up against A-list actor, John Travolta; a former Royal Caribbean cruise ship employee now claims he was inappropriately touched by John Travolta. Nichelle Turner is live in Los Angeles to tell us more. Hi.
NICHELLE TURNER, CNN SHOWBIZ CORRESPONDENT: Hey Carol. You know yes that makes the third allegation now against the "Pulp Fiction" star. We're talking about this former cruise ship -- a Caribbean cruise ship employee, his name Fabian Zanzi. He is saying John Travolta offered him $12,000 for sex while they were on -- while Travolta was on his cruise ship on a vacation.
Zanzi says he turned it down. In an interview with a Spanish news outlet Zanzi says he reported the incident to his Royal Caribbean supervisors. Now CNN obtained a statement from Royal Caribbean International saying that Zanzi was an employee from 2003 to 2011 and he was reassigned by the company in 2009.
Now there is some good news though for John Travolta whose lawyer's says these claims are without merit.
Okorie Okorocha the attorney who filed the sexual harassment suit for John Does one and two apologized to John Travolta's attorney saying that one of the plaintiffs, John Doe number one was wrong about the date of the alleged assault.
Now John Doe number one is a massage therapist. He claims John Travolta sexually assaulted him while giving the actor a massage in a Beverly Hills Hotel on January 16th. Travolta's attorney Marty Singer says the actor was in New York when this alleged sexual assault occurred.
And Singer says John Travolta arrived in the city a day before for a wardrobe fitting for his upcoming film, "The Killing Season" and a photograph -- a photograph of Travolta with Singers says was taken at New York City also bears this time stamp of January 16th at 4:30 p.m. Carol.
So this one definitely is far from over. It just seems like though, that it may be a never ending cycle. Now I should tell you that Okorie Okorocha did say that he is no longer going to be representing John Doe number one because of this mix-up but he still will be representing John Doe number two.
COSTELLO: Wow, that's a mess.
TURNER: Yes still a lot.
COSTELLO: Let's talk about -- yes -- Sara Hyland, the actress who plays Haley Dunphy on ABC series "Modern Family" she's been keeping a secret. TURNER: Yes. Yes she has. She -- you know, she often makes audiences laugh on screen. She's this boy crazy text messaging teen Haley Dunphy on "Modern Family." But most audiences are probably unaware of her health issues. She's 21 and she tells ABC News that she's been struggling with kidney disease since she was 9 years old and that a lot of times she would be in pain especially if she didn't get at least 12 hours of sleep.
Now believe it or not this has really had an impact on her while working on "Modern Family." Now according to ABC Hyland would often sit down or text on her phone during the scene to hide her exhaustion. She also said sometimes she would just have to lay her head down for rest.
But here's the good news Carol. She has had a kidney transplant surgery. Her dad was her donor. She is recovering. Her cast mates and co-stars have been coming around helping her out. Julie Moen who plays her mom on the show has been coming around and playing her mom off the show.
So hopefully she will be ok to start the new season up for "Modern Family" in the fall.
COSTELLO: Oh we hope so. Thanks so much Nischelle.
TURNER: Sure.
COSTELLO: Your chance to "Talk Back" on one of the days big stories. The question for you this morning, "Why aren't candidates talking more about the economy?" Where are their big bold plans? Your responses coming up.
(COMMERCIAL BREAK)
COSTELLO: We asked you to talk back on one of the big stories of the day. The question for you today: why aren't candidates talking more about the economy?
This from Beck, "Because there's nothing any of them can do about it."
This from Bob, "In actually what can a president do about the economy other than creating public jobs to fix our crumbling infrastructure. Republicans want to take from the poor to give to the rich."
This from Walter. "I have come to the conclusion that anyone will say anything to get the title of president."
This from Bob, there is no solution that a president alone can do to solve the money issues we face. Any freshman in college knows this after one economy class."
And this from Barbara. "Obama is not talking about the economy because he can't. Now he's riding the gay marriage wagon. Everyone else is, especially Romney. Gay marriage doesn't create jobs."
Keep the conversation going Facebook.com/Carolcnn.
We are following a lot of developments in the next hour of CNN NEWSROOM. Let's check in first with Christine Romans.
ROMANS: Good morning Carol. I'm following the Facebook IPO frenzy. I haven't seen this much interest in an IPO since -- well, ever. It's Mark Zuckerberg's 28th birthday. We'll tell you what that means for your ability to get the gift of a share of that saga of the IPO on Friday. I'll tell you how to do it and if you can, coming up at the top of the hour.
ALINA CHO, CNN CORRESPONDENT: I'm Alina Cho in New York. The largest manhunt in 20 years is under way in southern California. Authorities are looking not for a fugitive but for a fellow FBI agent. I will have the latest on the search coming up at the top of the hour.
GEORGE HOWELL, CNN CORRESPONDENT: It is dubbed the best band in the land but some are calling for the FAMU marching band to be disbanded since the death of one of its drum majors, Robert Champion. And in a little more than an hour, school leaders are expected to come together to talk about what's next. I'm George Howell. That live report in the next hour.
COSTELLO: And the NAACP is pushing a new voter registration drive and telling millions of African-Americans to vote this November but some fear they will not be allowed to vote. I'll ask the NAACP senior vice president for campaigns about that and about Obama's same- sex marriage endorsement and its impact. That comes your way in 20 minutes.
(COMMERCIAL BREAK)
