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American Morning
IMF Chief Strauss-Kahn Resigns; Bin Laden Raid Leaks; IMF Boss Steps Down; Schwarzenegger's Sons Born Days Apart; President To Give Speech About Future of Middle East and Arab Spring; How Companies Can Create Jobs in America; Doomsday Weekend
Aired May 19, 2011 - 07:58 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CHRISTINE ROMANS, CNN ANCHOR: I'm Christine Romans.
Resigning over sexual assault allegations. The head of the International Monetary Fund stepped down late last night, right before his bail hearing in New York. We'll speak to the alleged victim's attorney this hour.
KIRAN CHETRY, CNN ANCHOR: I'm Kiran Chetry.
Pretty amazing pictures of a crash at a California naval air base. It was a military jet, slid off the runway and burst into flames. The plane was hauling 150,000 pounds of jet fuel.
ALI VELSHI, CNN ANCHOR: I'm Ali Velshi.
The woman that broke up Arnold Schwarzenegger's marriage revealed. You are looking at the first pictures of the mother of his secret child and now there are reports Maria Shriver has made her first legal move on this AMERICAN MORNING.
ROMANS: All right. Good morning, everybody. It's Thursday, May 19th, this morning. Welcome to the couch, Velshi.
VELSHI: Thank you.
CHETRY: You made it.
VELSHI: Good to be on the couch.
CHETRY: You got your workout in.
First, the jailed head of the IMF resigning. This news coming just hours before he plans to ask a judge to be released on bail. This is the first look at Dominique Strauss-Kahn's mug shot. He is still in a prison cell at Rikers Island right now.
VELSHI: He said he's stepped down so he can focus on proving his innocence, insisting he's not guilty of sexually assaulting a maid at a Manhattan hotel last weekend.
ROMANS: Susan Candiotti is covering this case. It's no coincidence that he stepped down right before he's asking to be freed on bail, right, Susan? SUSAN CANDIOTTI, CNN CORRESPONDENT: That's a good argument for him to be make with the court. I don't have to worry about that. That's part of how serious I am about getting involved in the defense of my case.
So, the district attorney's office won't say whether they will accept this deal. Either way, it's up to the judge to decide whether to spring Dominique Strauss-Kahn.
He spent three nights in a cell without the creature comforts he's used to. It wouldn't be easy for anyone, let alone an internationally-renown financier who has first-class travel for him and his family when on business written into his contact. So, if the judge approves bail, Strauss-Kahn will stay at home, possibly his daughter's in Manhattan, who he says he visits often.
Here's the bail deal he's proposing, a $1 million bail, the same amount he offered at Monday's court appearance that was rejected by a different judge. He'd be confined to home 24 hours a day, be under electronic monitoring, probably an ankle bracelet, and he's likely to regularly check in by phone with the court.
He's already turned over his passport and would also hand in a United Nations travel ID. He would put up the deed to his $4 million home in Georgetown in Washington, D.C. He and his wife also have a home in Paris.
Now, Strauss-Kahn will also tell the court he'll wave extradition to the United States if he flees to France or any other country that doesn't have an extradition treaty with the U.S.
The possibility of bail doesn't sit well with the alleged victim, the hotel maid, according to her lawyer.
(BEGIN VIDEO CLIP)
JEFFREY SHAPIRO, LAWYER FOR ALLEGED VICTIM: She's very concerned about her security. She's very concerned about what has happened, and what this man is capable of. And the fact that he would be free, I'm sure would be something that would -- she would be very alarmed about.
(END VIDEO CLIP)
CANDIOTTI: Now, Strauss-Kahn's lawyer says he'll plead not guilty and told the court they have a defensible case, which could mean they may claim any sex was consensual. Now, Strauss-Kahn's DNA and other forensic evidence collected at the scene of the alleged sex attack and any testimony by the alleged victim will be considered by a grand jury.
So, whether or not he makes bail, he'll be back in court tomorrow. That's when we'll find out whether the grand jury is indicting him on these charges.
VELSHI: Yes. We're getting little bits and pieces of information all over the place. But one of these issues with respect to his side possibly claiming that it was consensual sex with the made is complicated by this whole idea of the hotels policy about how maids, what has to happen when they are cleaning a room.
CANDIOTTI: That's right. The policy is, you have to have the door open at all times, that the cleaning cart props open the doors in that door hallway.
So, the argument could be, by the prosecution, would someone be involved in consensual sex if you had the door wide open? I mean, we'll have to see what the defense is going to be and how this all play out.
VELSHI: So, the issue is, is this he said/she said or is there for evidence on every level? Is there forensic evidence? Is -- that key card evidence from the hotel?
This is definitely a clear cut a case as it appears to be on the surface.
CANDIOTTI: Of course not. In a situation like this, there will be a lot of forensic evidence involved obviously. And, yes, to a large degree, in the end, he said/she said, and credibility of the testimony of everyone.
CHETRY: And that will be interesting, because there are other people coming forward alleging attacks or incidents, and questioning whether they're going to put forth charges.
CANDIOTTI: Whether that's admissible in court is another thing.
CHETRY: Right.
ROMANS: Well, Susan Candiotti, thank you so much. We're going to talk to Jeff Shapiro in 10 minutes. He's representing the alleged victim in this case. He has said in numerous interviews that she never knew him, never saw him before this happened. We are going to ask him how she's holding up and how she plans to prove her claims that Strauss-Kahn sexually assaulted her.
VELSHI: And this morning, a team of NTSB investigators are pouring over the remains of a military tanker jet that crashed and burned at the Point Mugu naval air base in southern California. The plane crashed on takeoff, sliding off the runway and erupting in flames. Three crew members escaped with minor injuries. Officials say the jet had 150,000 pounds of jet fuel on it.
CHETRY: Well, more than two weeks after his death, we are hearing what al Qaeda is claiming to be the voice of Osama bin Laden. They posted a 12-minute audio message on radical Islamic Web sites, calling bin Laden a martyr of Islam. The message praises the revolutions in Tunisia and Egypt, and encourages Muslims to rise up against corrupt rulers and Western influence.
ROMANS: There is growing concern in Washington that too much information has been leaked to the media about the Navy SEAL raid that killed bin Laden. CIA Director Leon Panetta sent a memo yesterday, reminding agency employees to protect classified information.
Panetta warned that the disclosure of intelligence secrets will be prosecuted by the Justice Department. He also stressed leaks at worst endanger lives.
VELSHI: And leaks can also compromise future military missions and the lives of U.S. troops. That's from the Pentagon. Here's what chairman of the Joint Chiefs of Staff had to say about it.
(BEGIN VIDEO CLIP)
ADM. MIKE MULLEN, JOINT CHIEFS CHAIRMAN: We have gotten to a point where we are close to jeopardizing this precious capability that we have, and we can't afford to do that. This fight isn't over, first of all. Secondly, when you now extend that to concern with individuals in the military and their families, from my perspective, it is time to stop talking. And we have talked far too much about this. We need to move on.
(END VIDEO CLIP)
VELSHI: It's interesting because Mullen said government officials were not the only ones to blame. He mentioned retired military officers as well. Earlier, we talked to Peter Bergen, our terrorist expert, who said it's an open society.
CHETRY: Right. But he also said that he thinks that some of this pushback coming from the military is over the information that came out from "The Washington Post" -- the article about the drones, the flights that were taking place over the compound.
ROMANS: It was so specific.
CHETRY: Yes, it was very specific. So, it would be hard -- I mean, that would be something that somebody who is currently in the military would have to know about, you'd think. So, I think that was a little bit disturbing as well.
VELSHI: Yes.
CHETRY: Well, United Airlines says it was a mistake and it won't happen again. The airline blames a computer glitch for the brief return of flights number 93 and 175. Of course, they ring a bell because those were the flights that went down in the 9/11 attacks. A United spokesperson says, quote, "It shouldn't have happened. And we have -- we should have caught it sooner than we did."
ROMANS: A court ruling could give us an inside look into the accused mass shooter in Tucson. "The Arizona Republic" is reporting a judge ordered Pima County Community College to hand over 250 e-mails written about Jared Loughner. The school initially said it breached a privacy law.
Six people were killed in that January shooting. More than a dozen others injured, including Arizona Congresswoman Gabrielle Giffords.
VELSHI: And we've got some good news actually for Congresswoman Giffords or about her. Her latest surgery was a success. In a TV interview just a short time ago, her husband and Endeavour commander, Mark Kelly, says she is recuperating and getting back to therapy today. Those are his words.
She underwent an operation to repair her skull after suffering from the gun shot wound in January in Tucson to her head. Her surgeons are expected to speak later this morning to discuss what is next -- the next stage in her recovery.
ROMANS: And that interview coming from space. We are learning about the developments of her progress --
VELSHI: Of Gabrielle Giffords.
ROMANS: -- from space.
VELSHI: From space.
CHETRY: Modern technology is an amazing thing.
Well, some terrifying moments for people living in Hagerstown, Maryland. Here are some of the video shot of a tornado. It touched down yesterday.
The National Weather Service is confirming that it was on the ground for a two-mile span.
VELSHI: Wow.
ROMANS: Wow.
CHETRY: Over two miles -- tearing up roots and knocking over trees. Amazingly, though -- look at these pictures -- no one was hurt.
ROMANS: All right. Speaking of Mother Nature, a record ha stood for over 80 years has been broken in Vicksburg, Mississippi, this morning. Virtually ever home in that area under water. The Mississippi River cresting yesterday at 57.1 feet. That's the highest level on record, a full 14 feet above flood stage.
VELSHI: I have a record that's going down.
ROMANS: What?
VELSHI: Gas prices.
ROMANS: Finally.
VELSHI: Not accurate way to say it.
CHETRY: Two cents, right? Two cents?
VELSHI: Two cents, but a little bit of a trend down.
ROMANS: Don't spend it all in one place.
VELSHI: AAA reports the national price of regular unleaded gasoline, self serve, now $3.90 -- 2 cents less than yesterday. It's the seventh straight day that the price of gas --
(CROSSTALK)
CHETRY: Yes, because when you add that all together -- I mean, that's about 8 cents down from a week ago.
VELSHI: We're talking about $4 and it has pulled back again.
CHETRY: All right. Well, business is booming for a gas station owner in Columbia, South Carolina, who just renamed his station after President Obama. The owner spent $4,000 to change the name and look of his gas station. It sparked a competition with the station across the street. When we last checked Obama's price for gas was $3.59 for regular.
(CROSSTALK)
VELSHI: I have to say. I don't understand what's good. The guy, the owner of the station, said, he did it because he likes Obama, and people like Obama, and they come to his gas station. Do me a favor. If you like me, never name a gas station after me.
CHETRY: I know.
VELSHI: I mean, with rising prices, I can't imagine that's fun for the White House.
ROMANS: Well, the owner can always say, you can just blame Obama for gas prices.
VELSHI: Yes.
CHETRY: You mean the owner of El Cheapo who is in competition with other gas stations.
ROMANS: All right. Cut these out of your everyday life and you'll be a little bit richer. A pretty helpful article up right now. Everyone should read this on the all-new CNNMoney.com -- the top 10 ways you are just wasting your money.
Here are the top three: ATM fees.
VELSHI: Guilty.
ROMANS: You do not do that. Ali, it is just throwing money away. You might as well burn it.
One consumer analyst said some people could save up to $500 a year if they just used their own ATM machines.
CHETRY: And this one is lotto tickets. I don't know. I mean --
(CROSSTALK)
ROMANS: You are buying something. You are buying hope.
CHETRY: That's right. You may spend a jackpot over the course of a lifetime trying to win big, anywhere from $500 to $1,000 a year for some people.
VELSHI: Wow.
Number three on the list, fancy gourmet coffee. The sludge from the machine will probably just as well, if it doesn't taste it. But we have a lot of people that are writing in to us saying, you know, it's my guilty pleasure.
ROMANS: I completely disagree on that. I think if it makes you better at work, or if you, you know, makes you better as a mom or better as a husband, and it's part of your whole routine, it makes you more efficient -- then, it's is fine. It's a good expense.
VELSHI: Even if it's five times the cost.
ROMANS: If you can afford it.
CHETRY: I have to say, I do my McDonald's ice coffee. It's only $2.14. I used to do the caramel maciado. I think that was like $16.50. But I always got the largest one.
VELSHI: We want to know what your guilty pleasure is. Or, really, what waste your money on and why. It's our question of the day. Email us at CNN.com/AM. Give us a tweet @CNNAM. Or tell us on Facebook.com/AmericanMorning. We're going to read through some of them.
CHETRY: I love the hand signals from the crew. They are going cigarettes, cigarettes. And the other ones are going alcohol. That's true. Obviously, lawmakers this --
(CROSSTALK)
ROMANS: That's why they tax them because they're going to --
CHETRY: Sin tax.
ROMANS: Up next, Jeffrey Shapiro, he's the attorney, the private attorney for the New York hotel maid accusing IMF chief Dominique Strauss-Kahn of attempted rape. We're going to ask him how she is doing and ask him to tell us more about her and what's next in her case.
CHETRY: If you have an android phone and you like to use public Wi-Fi. You could be in trouble, people can get a hold of your contacts, of your mail, and even your photos. We'll tell you what the companies are saying.
VELSHI: It doesn't matter and it doesn't matter if you waste money on stuff because there are a whole bunch of people who think the world is coming to an end on Saturday. Unfortunately, we've not been relieved from our shifts on Sunday in case that happens. So, we're going to tell you how likely the world is to come to an end in just a few minutes.
It's 11 minutes after the hour.
(COMMERCIAL BREAK)
VELSHI: Later today, the former head of the International Monetary Fund is going to be in a court asking a judge to free him on bail.
CHETRY: That's right. Dominique Strauss-Kahn is charged now with sexually assaulting a maid in his Manhattan hotel room. He says he's not guilty. He resigned his post, though, yesterday, saying he's going to devote all of his time to defending himself.
ROMANS: Attorney Jeffrey Shapiro is defending Strauss-Kahn's victim, representing her as her attorney.
Thank you for joining us this morning.
Now, prosecutors in the Special Victims Unit are taking care of the criminal part of this case. Tell us what your role is and how you came to represent her and what your role is in the grand jury process.
JEFFREY SHAPIRO, ATTORNEY: Well, my role -- I do not play a role in the grand jury process. The presentation of this case to a grand jury and the accumulation of evidence for the criminal prosecution is solely within the New York City Police Department and district attorney's office.
My role here is to counsel her and to be with her to explain what's going on, to try to help her get through this personally, on a personal level, and, you know, try to help her at some point get her life back on track.
VELSHI: When you say a personal level, you are not somebody who has a personal relationship with her?
SHAPIRO: No, not at all.
VELSHI: That means I will launch a civil suit.
SHAPIRO: No. There's been no discussion about any civil litigation. That's not something that's on her mind, not something that we've discussed. My role is as an attorney who helps victims of negligence or other things, such as a rape victim, is to try to help her through life --
VELSHI: How do you get paid?
SHAPIRO: I am not being paid.
CHETRY: This is a pro bono work that you are doing for her?
SHAPIRO: Absolutely.
CHETRY: I want to ask you a little bit about her state of mind, because she had to testify in front of the grand jury yesterday. And that's an ongoing situation. She may be called back. They have to present this case out there by Friday.
What has it been like for her to have to relive, you know, what she claims happened to her and also how is she doing?
SHAPIRO: I don't know that it is possible for her to express what this is like. I think that if you've had any experience with someone who has been traumatized by sexual assault, reliving it in your mind is hard enough. Having to recount it, even to a therapist, is difficult -- much less having to talk about it on the record in front of a grand jury.
I mean, it's extraordinarily difficult. And, nonetheless, she's making it through this.
CHETRY: Does she feel that her employer supported her when she -- and police supported her when she first reported this attack?
SHAPIRO: Yes. By the way, this is someone who was very grateful to have this job. She'd worked in this hotel for approximately three years. She was treated well by her superiors and her colleagues. They supported her, because she was a good employee, and they continue to support her, by the way.
So, this was -- this was a job that she depended upon. It was also a job she was very grateful for.
ROMANS: You say she is back with her daughter, her 15-year-old daughter.
SHAPIRO: Well, they are together. Yes.
ROMANS: And can you tell us a little bit about what the next steps are for her? Obviously, she's not going to be going to work. Now, she's in a process where she's going to be in the legal system for, you know, God knows how long.
SHAPIRO: Well, you know, in terms of her being in the legal system -- you know, the role of a witness or, for this matter, a victim -- initially is to present whatever evidence is asked from them for a grand jury. From that point forward, she's not so much in the legal system as a potential, you know, witness should this come to trial.
VELSHI: What's happening with the discussions of these other women? One in particular who had interviewed him some years ago who are coming out of the woodwork and sort of saying that they've seen this type of behavior before? Does that fit into this prosecution in the system that she's in at the moment?
SHAPIRO: Well, you know, I think the answer to that question will come from the strength of and the credibility of these people who are making the accusations. And, ultimately, in any trial, whether somebody could take the witness stand and testify about prior acts really depends upon whether the judge lets it into evidence.
CHETRY: I also think this is interesting, that the defense is saying that they believe that the evidence will show that it was consensual. They are also pointing to his behavior after the incident, that he calmly went to lunch with his daughter, not necessarily in keeping with someone who had just committed a violent crime. What physical evidence, if any, will help prove her story?
SHAPIRO: Well, the physical evidence or forensic evidence has been accumulated by the police and the district attorney's office. They possess it. They control it. And I can't comment on it.
CHETRY: Some of it has leaked out that there is swaths of carpeting that were removed from the floor, as well as other things. How does -- how is that going to play into proving that it was not consensual if his defense is that this was a consensual sexual encounter?
SHAPIRO: Well, again, my commitment to the district attorney's office is that I would do nothing to interfere with what they're doing. All I can do is speak on behalf of this woman who I have, my client, who I have spoken to at length. And I will tell you that in terms of what I think the strongest part of this case will be, will be her testimony.
ROMANS: How many times have you met with her?
SHAPIRO: Quite a number of times.
ROMANS: Quite a number of times. All right. Jeffrey Shapiro, thank you so much for joining us today.
CHETRY: Thanks for being here.
SHAPIRO: OK.
CHETRY: Well, we're going to take a quick break.
When we come back: more news on the Arnold Schwarzenegger/Maria Shriver front. The other woman now revealed and also perhaps some legal moves on the part of Maria.
ROMANS: And hands off the 401(k). Senators say it's not a piggybank. It's for your retirement. How to make it harder for you to raid it, but also easier to pay back in if you do take one of those hardship withdrawals.
It's 20 minutes after the hour.
(COMMERCIAL BREAK)
VELSHI: Twenty-three minutes after the hour -- minding your business this morning.
Android phones open to attack. Scientists say they found a major security flaw that have affects almost al cell phones running Google software. It can give hackers pretty access to your calendars, photos and contacts over an unsecured Wi-Fi network. Google is aware of the problem and a fix is already in place for the calendar and the contact applications.
The Dow begins the day at 12,560, coming off an 80-point gain yesterday. The NASDAQ was also positive, up 31 points. The S&P gained 11 points.
Lawmakers introduce a bill to curb borrowing from 401(k) funds. They say many people use it as a piggybank and they can't repay their loans. Under the legislation, workers will be limited to three loans at one time.
Power couple Starbucks teaming up with Lady Gaga. The chain will host a social media scavenger hunt featuring Gaga, with downloadable clues and prices, including an all-access pass to one of her shows.
AMERICAN MORNING -- back after the break.
(COMMERCIAL BREAK)
CHETRY: Welcome back. It's 28 minutes past the hour right now.
And there are new surprising details coming out this morning about the scandal that has turned apart California's former first family. It turns out that the child that Arnold Schwarzenegger admitted that he fathered with his housekeeper was born just days after Maria Shiver gave birth to their youngest son. "People" magazine is reporting that Shriver has hired a high-powered defense attorney in California.
ROMANS: We are getting the first look at Arnold Schwarzenegger's other woman. "The New York Times" is reporting that her name is Mildred Patricia Baena.
VELSHI: These are pictures, actually, from her MySpace page. She's reportedly the mother of Schwarzenegger's secret child.
Thelma Gutierrez is live outside Mildred Baena's home in Bakersfield, California.
It seems every hour, more information is coming out about this. Thelma, what do we know?
THELMA GUTIERREZ, CNN CORRESPONDENT: Well, Ali, I can start by telling you that we do know that Mildred Baena is not here at this home. And it's not surprising. This area has been crawling with reporters and cameras and paparazzi for the last week now. Ands neighbors say they haven't seen her around all week long.
Now, we do know also that she is 50 years old. She's a native of Guatemala. And she worked for the Schwarzenegger family for 20 years as their housekeeper.
One of the neighbors said that Baena had come into this neighborhood about two months ago with her 14-year-old son and told some of the neighbors that she had worked for the Schwarzenegger's, also that she was definitely retiring.
CHETRY: Also, CNN getting that document, getting their hands on some documents. What about the birth, what do you know about that?
GUTIERREZ: Well, Kiran, we do know that that birth certificate that was obtained by CNN shows that Mildred Baena actually gave birth to which child just days after Maria Shriver gave birth to her son, Christopher. It also mentions the father of the child as being her husband, at the time, and that's what it shows. But we know that, later on, she actually petitioned for a divorce from that man.
ROMANS: Do we know what her marital status is now?
GUTIERREZ: Christine, what we are learning is that she is divorced. She filed for divorce in Van Ives, California, back in 2008. She had been married for ten years. The divorce document shows that she was separated three weeks after the child's birth.
And what's really curious to note about that, Christine, is that under the category that asks for a declaration of children she marked a box indicating she had no minor children with her husband at the time. Christine, now, we know why.
VELSHI: And we don't know anything about whether any support was flowing from Arnold Schwarzenegger to this woman?
GUTIERREZ: We do know that a source close to Arnold Schwarzenegger that he did support this child from birth. We do know that. The form in which that took place, we are not sure.
CHETRY: Thanks so much.
VELSHI: Thanks, Thelma.
CHETRY: There are other reports that he wasn't told until the child was a toddler. Still arks a lot of questions.
Top stories, Dominique Strauss-Kahn now resigning his post as head of the International Monetary Fund, insisting he didn't sexually assault a maid in his Manhattan hotel room, calling the encounter consensual. He will be in a New York court today asking to be released on $1 million bail.
A military tanker jet crashes and burns at Point Mugu naval point in California. Three crew members on board escaped with minor injuries. The plane was carrying 150,000 pounds of jet fuel officials say. The NTSB is now investigating the crash. Al Qaeda is claiming it is the voice of Osama bin Laden praising the invasions in Tunisia and Egypt. They refer to him as the martyr of Islam encouraging Muslims to rise up against "corrupt influence and western influence."
VELSHI: In just a few hours President Obama is going to deliver a major speech outlining U.S. policy in the Middle East. His proposals may be very far reaching
ROMANS: Including the $2 billion boost for Egypt and Tunisia where the Arab spring reform movement began. Ed Henry live at the White House with a preview. We have a complicated narrative. Why react one way in Syria but a different way in Libya and yet a different way in Egypt and how does the U.S. harness the air rob spring to promote democracy in the region?
ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT: These are hard questions. This president has been under pressure from some critics since the Arab spring began a few months ago wondering why the U.S. didn't act sooner, didn't jump in and try and help some of the peaceful protesters.
This president's reaction has been, look, there is, first of all, not a one-size-fits-all to all of these important countries. He didn't want the U.S. to be dictating the outcome in all of these countries. He is walking a fine line. What White House aides say he wants to do now, he sees a moment where everyone hasn't been able to take a breath after a few months of real tumult.
What the U.S. can do to try and help some of these emerging democracies, Egypt and Tunisia. Also, the president is going to talk about more trade with the region to try to boost people up as well as setting up a fund to boost investment.
The reason for that is the president believes this was not just about human rights, a lot of these peaceful protests in the Arab spring. It was also like millions of Arabs feeling like there is a lot of economic inequity and difficulties getting basic jobs. So the U.S. wants to foster some democracies by pouring money into the region.
Let's not forget, Osama bin Laden has been killed recently. And a lot has changed since the two years since the president gave that speech to the Muslim world in Cairo.
CHETRY: Any reaction to this so-called Osama bin Laden tape that the jihad websites are putting out there?
HENRY: They have not reacted directly, the White House. Now that he is dead, as one White House aide said, we are trying to turn the page and push forward. With Osama bin Laden being killed and brought to justice that now this could lead to some whole new U.S. foreign policy successes in that region.
I think if you look back on the president's Cairo speech two years ago, he also talked about sort of the U.S. trying to help offer an alternative to young Muslims, an alternative from Al Qaeda. They believe inside the White House that now that Osama bin Laden has been brought to justice, that message can be hammered home. That's another big reason why the president is pouncing now. Kiran?
VELSHI: Speaking about a message being hammered home, what is going on? All I hear is banging.
ROMANS: We can't decide if it is Paul Bunion or John Henry working behind you.
HENRY: I am working hard. They are working hard behind me. They are digging this big tunnel. Nobody knows what they are doing.
ROMANS: I hope it is not the end times tunnel outside the White House.
HENRY: They only have two days.
(LAUGHTER)
CHETRY: Ed, great to talk to you. Three hours from now is when the president is going to deliver that speech, 11:30 eastern.
VELSHI: About the Middle East policy, not the end times.
CHETRY: We will carry it for you live.
VELSHI: In case you don't believe the world is coming to an end, you may be interested in finding a job. There are a lot of unemployed people around. We have some ways to actually try and change unemployment in the country, bring it down and get more Americans back to work after the break.
ROMANS: Five ways to bring down unemployment. It's 36 minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: It's 40 minutes past the hour. Take a look at Dallas this morning. It is cloudy but 72 degrees. A little bit later, going up to a high of 86 degrees. That's a little song by our buddy, Trace Adkins, the concert last week for the flooding and tornado victims.
VELSHI: We are taking a critical look at the jobs series with an in-depth series "American's Job Hunt." Our partner in this, "TIME" magazine, lays out what we need to do to put this country back to work.
ROMANS: And there are a lot of potential solutions, invest in manufacturing, retrain workers in their 40s and 50s, double down on growth industries, also foster small businesses and create short-term jobs through building infrastructure.
CHETRY: We want to talk about all of these ideas and how we can make them work. Let's go through them with Rana Foroohar, assistant managing editor at "TIME" magazine. We saw the unemployment rate ticking up to nine percent. People want to know there is hope out there.
RANA FOROOHAR, ASSISTANT MANAGING EDITOR, "TIME": Absolutely. There is some hope. What's difference this time around, we have had growth without job growth. The economy is growing but jobs aren't coming back. That's really different. There are things that we can do as we have laid out in our story this week.
ROMANS: It is interesting. We talk about retraining. That's not something we have done well. We have never had to retrain on a massive scale before. Globalization has been our massive strategy. A big chunk of the economy has been left behind by globalization. How do we retrain all those people and spend money when Congress doesn't have a lot of room to spend more money?
FOROOHAR: If you look at companies that have done them well like Germany, there tends to be a lot more political cohesiveness. There is a big disconnect between jobs and skills. There are jobs, but the skills aren't there, especially amongst young people.
VELSHI: Let's talk about retraining. In one of the pieces that you worked on with Fareed Zakaria, something where the government spearheads or pays for retraining for older workers. It is not being done. We have got this big bubble of unemployed people that have 30, 40 years to live but don't work.
FOROOHAR: Absolutely. We have all heard about the "man- session." Older men, above 50 have been hard hit by this. Retraining should happen across all age groups, we think. But there are other ways to grow the jobs market. We can look at growth industries, health care, entertainment, tourism, these are areas that America is very strong in globally and could become stronger in.
CHETRY: How much is the fight in Washington to make sure that spending is cut, that we are down to bare bones, effective innovation when it comes to finding new and creative ways to create jobs?
FOROOHAR: I think you can make a strong case that it has a lot of countries and companies that invest in innovation and grab market share. We have a story about Prat and Whitney. This company over the last ten years has grown an area of innovation. They have thousands of new jobs to show for it.
CHETRY: You talk interestingly enough about what it takes from that one engineering student to be hired and the amount of money it costs to train that person and what they end up bringing to the workforce. That's a very fascinating look.
FOROOHAR: Yes. We have a great graphic. It shows how one engineering job has led to 1,000 jobs throughout the country.
ROMANS: Do governments help create jobs or does private industry?
VELSHI: Let's settle it right now. Put up your hands if you think government can help create jobs. It absolutely can. ROMANS: Government can create the atmosphere in which the private business does. Private business has a good atmosphere. They are sitting on their money. How do you unlock it?
FOROOHAR: It goes back to your point about globalization. There is a huge disconnect between the fortunes of the best companies in this country and the labor. That's because they can put jobs and new businesses anywhere in the world. What government can do is encourage them to keep them at home.
CHETRY: I remember when we were talking about the stimulus, obviously, that's become a dirty word because of our debt and our deficit an all of that. We were talking about that which would help in the short-term but eventually lead to long-term success. What happened to all of the infrastructure projects? Things we were talking about to get people working again but also improve the country.
FOROOHAR: I think what happened is politics. We have an incredibly co contentious environment in Washington. There is a continuous growth as Fareed mentions. We could spend $2.2 trillion on infrastructure in this country and put a lot of people to work.
VELSHI: Money that needs to get spent and to get borrowed for us to use it.
CHETRY: But money that also needs to get borrowed for us to be able to use it.
(CROSSTALK)
VELSHI: On air and online, we are on the job hunt. Check out CNNmoney.com to check out where the jobs are. It is 45 minutes after the hour. We will be right back.
(COMMERCIAL BREAK)
ROMANS: A lot going on this morning. Here are your headlines.
Just in to CNN, right now the Coast Guard is searching for three people missing after two ships collided, a fishing boat and a larger container ship. The accident happened late last night in the Gulf of Mexico a few miles off the coast of Gulfport, Mississippi. Officials say that fishing boat sank, 16 people were on board.
The former head of the International Monetary Fund is preparing for a bail hearing today in New York. Dominique Strauss-Kahn resigned from the IMF late last night. He is accused of the attempted rape of a maid in his New York City hotel room and says he stepped down to devote all of his energy to proving his innocence.
Al Qaeda out with an audio message said to be recorded by Osama bin Laden just before his death. The message talks about the revolutions in Egypt and Tunisia and calls for Muslims to rise up against Western influences. We are a little less than three hours away from President Obama's formal response to the new developments in the Middle East. He'll deliver a speech from the State Department. CNN will carry it live at 11:30 a.m. Eastern.
Queen Elizabeth offering deep sympathy to Ireland, at a historic state dinner at Dublin Castle and she literally shined wearing a diamond tiara, a diamond necklace and a white silk dress with 2,091 hand-sewn embroidered shamrocks.
Wall Street open for business in just about 45 minutes; looks like stocks will open in positive territory if the futures hold, Dow futures up 37 points.
You're caught up on the day's headlines. AMERICAN MORNING is back right after this break.
(COMMERCIAL BREAK)
VELSHI: Yes, don't tell me how to live my life. I am going to Atlanta on the weekend. I'm missing the place. It is 56 degrees, partly cloudy, which I think is the same as partly sunny and 77 degrees. You know this --
ROMANS: It's whether you are an optimist or a pessimist.
VELSHI: Yes, I'm a partly sunny guy.
ROMANS: Yes.
VELSHI: But my wife always says the sun is trying to peek out. And I said the sun isn't trying anything nor the clouds, they are just doing what they do.
ROMANS: Oh you do the fact.
VELSHI: And they just -- they just --
ROMANS: Just the facts.
CHETRY: We like to give them -- you know, we like to give them motivation.
VELSHI: Yes.
ROMANS: That's right.
CHETRY: Old Man Winter is very angry today.
ROMANS: The Census Bureau this morning you guys is giving us an interesting snapshot of the American family this morning. The latest statistics shows cities like Denver and Atlanta are popular destinations for young families -- were popular destinations for young families in the '90s. They are getting a lot more grade though, today. The 55 to 64 year-old population in the areas surrounding these cities has doubled in the last decade. Other attractive areas to baby boomers who are retired or near retirement: Albuquerque, Las Vegas, Minneapolis, Phoenix and Seattle.
VELSHI: One of those things is not like the other. How did Minneapolis get in there? Everything else has something to do with landscape or -- or weather --
(CROSSTALK)
CHETRY: In Minneapolis the -- that would be standard of living.
VELSHI: I love Minneapolis. And you love -- you really like Minneapolis too?
ROMANS: I do. And my -- and my cousin this week who lives in Minneapolis told me that it's now hipper than New York.
(CROSSTALK)
VELSHI: They are not scared of the weather. It is perfect.
CHETRY: That's right.
Well, fewer Americans are getting married. But those who are already married are staying together longer than they have in years -- this is more census information. They say that three out of four couples who married after 1990 were still together by the year 2000 -- three out of four.
VELSHI: I see.
ROMANS: There was a recession. Who could afford to get married?
CHETRY: Oh Christine. Come on, people waited a little longer to get married. They didn't rush into it. They maybe did it for the right reasons.
(CROSSTALK)
ROMANS: Right there's more love. There's more love.
CHETRY: They're more economically stuck in.
ROMANS: There's more love is the answer to that.
CHETRY: Yes, so there you go. Congratulations, a three percent increase from the 1980s.
VELSHI: Yes you're not the only kill joy. I'm going to be a kill joy here too. That royal wedding is over but you can still dress like royalty. Remember Princess Beatrice's show-stopping hat.
ROMANS: Yes.
VELSHI: What did you call it?
CHETRY: The pretzel.
VELSHI: But what's -- is that a fascinator too or not?
CHETRY: Yes, I think so. Yes a fascinator is anything that gets fastened on.
VELSHI: That's in your head.
CHETRY: And it looks like there was a lot of fascinator.
ROMANS: It was kind of glued.
VELSHI: That will look, and it does look like a pretzel, let's call a spade a spade, it looks like a pretzel. Others compared it to a toilet seat, but either way you can have it.
ROMANS: It looks like a toilet seat with a bow around it, you're right.
VELSHI: It does that. The hat is up on eBay, by the way, it's up to $30,000, the money from the sale is going to UNICEF and Children in Crisis charities. The bidding closes on May 22nd.
ROMANS: I'm also a kill joy because I think it bought her endless amounts of public relations.
VELSHI: Absolutely. Absolutely.
CHETRY: She sure did.
ROMANS: All right, speaking of big money, according to CNNMoney.com, the top three ways people waste their money every single day are ATM fees, lotto tickets and gourmet coffee. So our question of the day, what do you waste your money on?
VELSHI: All right. We got some great responses from you. On our blog, Dakota writes, "I waste $49 a month on a gym membership that I have never used since I signed up last June. That could have been a mini-vacation." I used to do that for years, Christine.
CHETRY: Yes but the flip side is that if you used it, how great would that be. That wouldn't be a waste.
VELSHI: But -- but I've -- ever since I've known you had gym memberships.
ROMANS: That's true.
VELSHI: Doesn't -- it had no effect on my body, that's because I don't go to them.
ROMANS: Read this one, too.
VELSHI: Oh, I've got one here from Facebook. "I spend a lot of money on takeout and dining out. That's the price you pay when the only thing you can cook with is the microwave." That is definitely one of my strengths that we --
(CROSSTALK)
CHETRY: Yes we -- we often do pick e-mails that sort of know what we think.
VELSHI: That would reflect what we do. Yes.
ROMANS: I know, yes and at BcrealeyNBS (ph) on my Twitter said, "$250 a month on cable and Internet. Hey, what are you -- what are you going to do?" You know, Ali says this is something that you have to have. It's not -- it's not a waste.
(CROSSTALK)
VELSHI: It's a tough one though, you know, I don't know that that's a waste. How do you get a job? How do you -- how you find out about anything?
ROMANS: A lot of you have said cable and Internet --
(CROSSTALK)
VELSHI: It's a lot of money.
ROMANS: That's a lot of money.
Renee on Facebook, "As a non-traditional nursing student, I need a vice, my vice is Starbucks iced coffee on my way to school. I use my own cup. So I save 10 percent."
I say if it makes you a better student and makes you more productive, go for it.
CHETRY: Davetown (ph) Twitter writes, "My wasted money goes to Red Bull energy drinks. It's my addiction. I hear you there.
All DHab (ph) writes, "Custom Nike shoes. It's an addiction I'll admit it but I rationalize it by going to the gym.
ROMANS: Custom Nike shoes -- you can go on a Web site and you can pick whatever color you want. You can pick whatever swish you want. It is fun.
VELSHI: This is way beyond a guy like me who hasn't been in a gym in 10 years.
ROMANS: So you would get the custom Nike shoes and not go to the gym.
VELSHI: It's exactly why I --
(CROSSTALK)
CHETRY: It's a huge waste. VELSHI: All right. Well, thanks for all your response. We're going to take a quick break. We're going to be back in just a couple minutes. It's 54 minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: Four minutes from the top of the hour. When you think of the CDC, the Centers for Disease Control, you don't necessarily think funny but they do get creative points for the message on emergency preparedness. They get it out to people who probably wouldn't otherwise check their blogs.
VELSHI: This is a post by the assistant surgeon general. It asks, "Are you prepared for the impending zombie invasion" and instructs the public on how to prepare for flesh-eating zombies.
ROMANS: And it turns out the steps you need to prepare for flesh-ending zombies and an onslaught of ravenous monsters is the same basically as those suggested in advance of a hurricane pandemic like, for example, if you can prepare yourself for these people behind us, then you can survive anything.
CHETRY: Where do they get those creatures?
ROMANS: I don't know. I love it. But you know, it's funny because it actually --
VELSHI: It looks they're co-anchors, by the way.
ROMANS: It crashed their site for a while and it was really wildly popular. And they said, well, if that's how we get our message out, that's great.
CHETRY: You now, I still don't understand quite how would you prepare for flesh-eating zombies?
ROMANS: I think you have to have water in the basement. You know -- well, go to the Web site and find out Kiran and make sure that your house is prepared.
CHETRY: All right. Meantime, save the date. I may not have to worry about any of those actually. May 21st, 2011 that's this Saturday, by the way, end times.
VELSHI: That's the date that some people say the end of the world is coming, as in, the end of the world.
ROMANS: In the very short time that she has left, our Jeanne Moos spoke to some of the true believers.
(BEGIN VIDEOTAPE)
JEANNE MOOS, CNN CORRESPONDENT: I hate to be judgmental but when you keep seeing "Judgment Day this Saturday", "The End of the World is Almost Here", it doesn't improve the daily commute.
Here is what's supposed to happen around 6:00 p.m. Eastern time Saturday.
TONY SHALLASH, JUDGMENT DAY BELIEVER: The largest earthquake the world has ever seen. There's not going to be any Banks, there's buildings that collapse. It's going to be quite awful.
MOOS: Like the disaster movie, 2012, arriving early. Earthquakes worldwide. Believers will experience rapture, heavenly ascent. While nonbelievers will stay for a few hellish months until the fiery end of the time.
UNIDENTIFIED MALE: 97 percent of the people God will destroy.
UNIDENTIFIED MALE: I don't believe in such (EXPLETIVE DELETED).
MOOS: The generally low-key and polite folks who believe this need tough skin as they hand out their leaflets.
UNIDENTIFIED MALE: It is all over, it is all over.
UNIDENTIFIED MALE: See you this time next year.
MOOS: And you're convinced. You're absolutely convinced?
UNIDENTIFIED FEMALE: Yes, because the Bible guarantees it.
MOOS: The Bible as interpreted by this California preacher, Harold Camping, head of Family Radio. Lately, he has been getting some flak.
UNIDENTIFIED FEMALE: We are worried about false teachers and buddy, you are one of the worst.
MOOS: Camping miscalculated his last end times prediction for 1994.
What happens if on Sunday we are all still here and there is no earthquake?
SHALLASH: Well, there will be an earthquake.
MOOS: This retired New York city transit engineer spent $140,000 for subway and bus shelter ads warning of Judgment Day.
That's your life savings.
ROBERT FITZPATRICK, JUDGMENT DAY BELIEVER: A good chunk of it.
MOOS: On Saturday, where will Robert Fitzpatrick be?
FITZPATRICK: As of now, I am planning to be in Times Square.
MOOS: With media tagging along expecting to see him with egg on his face or in rapture. And if those in heaven need someone to take care of the pets they leave behind, you can arrange with services like "After the Rapture Pet Care" and Eternal Earth Bound Pets to have non- Christians take care of your animals. One non-believer wants to celebrate, "We're Still Here" day on the 22nd. For some of us, the 21st is problematic.
MOOS: This is my birthday. To put this on me is weird. So if my birthday is on the 21st, what do you recommend I do?
SHALLASH: Pray.
MOOS: And maybe celebrate early.
Happy Doomsday dear Jeanne, happy doomsday to you.
MOOS: Jeanne Moos, CNN, New York.
(END VIDEOTAPE)
CHETRY: You know, a timer going off in me in studio. It's been beeping me to (INAUDIBLE) our show's done.
(CROSSTALK)
VELSHI: All right. That's it for us. We'll be back tomorrow, again, bright and early at 6:00 a.m. Eastern.
Right now, it's time for Carol Costello who'll continue all our great news coverage with CNN.
CAROL COSTELLO, CNN ANCHOR, "CNN NEWSROOM": I'm still wondering why Richard Roth was wearing a hard hat as he's saying "Happy doomsday."
ROMANS: I know. I know.
COSTELLO: I guess he was preparing, huh?
(LAUGHTER)
COSTELLO: That was fun.
CHETRY: Yes, he didn't know of course if the ceiling would fall on him as he was singing.
COSTELLO: Smart man, that Richard Roth.
Thanks to all of you. Have a great day.
