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American Morning
New Orleans Facing Tropical Storm Warning; Texas, Oklahoma Wildfires; 9/11 Firefighters Increased Cancer Risk; Big Banks Could Face Lawsuits; The August Job Report; Fuel Shortages in Libya; Criticism against Chaz Bono and ABC Fair?; Turkey Downgrades Israel Ties; A Plan to Create Jobs; Texas Wildfire 50 Percent Contained; Feds Raid Gibson Guitar Factories
Aired September 02, 2011 - 06:00 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. A tropical depression in the Gulf of Mexico has New Orleans in its sights. The governor of Louisiana declaring a state of emergency before the first drop of rain even falls, with forecasters predicting potentially catastrophic flooding.
ALI VELSHI, CNN ANCHOR: But Irene's not gone. I'm Ali Velshi. The raging floodwaters from Hurricane Irene literally washed him away, but a New Jersey man lived and now he's telling us how he survived mother nature's wrath.
CAROL COSTELLO, CNN ANCHOR: And a new snapshot of the economy. In just a few hours the government's new jobs report. Will it be welcome news for you, your job, and the recovery? We'll break it down on this AMERICAN MORNING.
ROMANS: Good morning, everyone. It is Friday, September 2nd. Jobs day, September 2nd. Welcome to AMERICAN MORNING. It's our Super Bowl, Carol.
COSTELLO: It is.
VELSHI: We're going to stick jobs news in between weather news.
COSTELLO: Weather and jobs. That's right.
VELSHI: It continues. Weather reports, weather issues continue to dominate our news. Getting uneasy in the big easy this morning. We're taking a look at what's causing all of the stress. It's a tropical depression that is forming in the Gulf of Mexico and New Orleans could be in for a very rough weekend.
Flooding in New Orleans. Never want to have to say those things again. Oil giants like Exxon have evacuated their workers from offshore rigs, sent choppers to bring everyone home. The national hurricane center is issuing a tropical storm warning with 10 inches of rain expected over the next few days.
(BEGIN VIDEO CLIP) MITCH LANDRIEU, NEW ORLEANS MAYOR: What I want to tell folks here though is what we do know is that there is high wind. There is a lot of rain and it's going slow. That's not a good prescription for the city of New Orleans.
(END VIDEO CLIP)
VELSHI: It's Mayor Mitch Landrieu. Louisiana Governor Bobby Jindal has already declared a state of emergency. It was six years ago this week when Hurricane Katrina came roaring through that city. Boy, we've got pictures to show you what it looks like, but I don't think anybody is going to forget that.
ROMANS: I don't want to see that picture anymore. No good memories from that.
VELSHI: Jennifer Delgado is tracking this system for us. She's live from the Extreme Weather Center in Atlanta.
Good morning, Jennifer, what's it looking like? I saw you giving these forecasts a little earlier with Carol and it looks -- never seen a storm forecast like that.
JENNIFER DELGADO, AMS METEOROLOGIST: Yes. You know, the problem is we don't have any steering winds to push tropical depression number 13 anywhere and over the last several hours it's really been kind of basically stationary.
You can start to see more convection popping towards the south and south eastern portion of the storm, but you can't pick out a center of circulation. The rain working into parts of Louisiana, gusts up to 45 miles per hour, sustained winds at 39 or should say 35 miles per hour.
Now as I show you the trek, Ali, this is what you were asking about. It's not going to be moving very much. Notice by Sunday, 2:00 a.m., approaching the southern coastline, Louisiana, and then by Monday, 2:00 a.m., still in that southern part of Louisiana.
What this is going to be doing, it's going to be causing a strong storm surge. We're also going to be talking about extremely heavy rainfall as it sits and spin. It pulls in all that moisture from the gulf and look at the rainfall totals, we're talking 10 to 15 inches and even some of the localized areas could see roughly 20 inches of rainfall.
That is going to lead to some problems with flooding across parts of Louisiana and even as well into parts of Mississippi. Now, for your forecast today, if you're going to be going down to the Gulf of Mexico, a lot of people planning to go to the beaches, not a good weekend for them by any means.
Elsewhere across the U.S., we are going to see some severe storms popping up. You can see for areas including Michigan and then over towards the northeast as well as New England, we're going to see temperatures increasing as well as the relative humidity levels starting to rise.
I point that out because we're also going to look at the chance for a few isolated storms to pop up. I know so many people are cleaning up after Hurricane Irene and the weather conditions will start to go downhill as we go through the weekend. Ali, back over to you.
VELSHI: All right, Jennifer, thanks very much. We'll be keeping a close eye on this with you and your team in Atlanta.
ROMANS: They sure could use some of that rain in Texas this weekend, the lone star state in the midst of a historic drought and dealing with several major wildfires.
The largest not far from Dallas has destroyed dozens of homes, but crews may finally be getting the upper hand as we head into the weekend.
CNN's Jim Spellman live in Possum Kingdom Lake, Texas. Good morning. Are they closer to getting this thing under control?
JIM SPELLMAN, CNN CORRESPONDENT: Yes, they really are, Christine, but first thing we noticed this morning is we're no longer smelling smoke and seeing ash come down. That's definitely a good sign.
Yesterday, all day they hit this fire with helicopter drops and plane drops of retardant, helicopter drops of water, and plane drops of retardant to try to get any hot spots out and keep it from spreading and get it as contained as possible.
Fortunately, they had a little help from the winds. The fire blew back on to it itself earlier in the day and they were able to make a lot of progress. Still officially 50 percent contained. We expect that to go up today.
Already some residents are allowed to go back home. They're putting together plans to get the rest of the people to be able to come back to the heavily damaged areas and this is a big tourist area.
And the economy here relies on that to try to get tourists back for this weekend for the last Labor Day weekend here of the summer, and try to get some help there. One thing people have been asking us all week here is, is that system in the gulf going to give us rain here?
Unfortunately, not again and these drought conditions are going to remain until they get significant rain. Therefore, could have more fires for weeks, months to come here, Christine.
ROMANS: All right, Jim Spellman in Possum Kingdom Lake -- such a Texas name. I have to find -- dig into the origin of that.
COSTELLO: Evidently it's the resort town. A lot of big, huge, beautiful homes there, vacation homes, are located there. VELSHI: No disrespect to Texas or Possum Kingdom Lake, but I told Carol as you were talking to Jim. I bet like a bunch of reporters went there and said let's just mess with our networks and tell them we're in Possum Kingdom Lake. I know I'm going to get tweets from people, I'm sure it's a great place. I'm going to come visit it. I love Texas.
COSTELLO: Some of the areas hardest hit by Hurricane Irene are getting relief from the White House. President Obama is declaring a disaster in Vermont. Rescue crews finally able to reach the town of Rochester, Vermont, which was cut off when roads into and out of the town were washed away by floodwaters.
The National Guard is now resupplying a number of landlocked towns that became islands overnight. Disaster declarations were issued earlier this week in North Carolina, New York and New Jersey. The president will tour Patterson, New Jersey this weekend, which has been swamped by floodwater
The water in some areas has begun to recede and residents are now concerned that the potential health risks from what's left behind, that might be the next cause of trouble for them.
VELSHI: All right, firefighters were exposed to toxic dust after the World Trade Center towers collapsed 10 years ago, are much more likely to develop cancer. That is the finding of a new study headed up by the chief medical officer of the New York City Fire Department.
Here's the headline, "Firefighters at ground zero face a 19 percent greater risk of cancer than firefighters who were not at ground zero. That finding comes as a real source of relief for many of the Big Apple's bravest.
(BEGIN VIDEO CLIP)
ROCCO CHIERICHELLA: It's nice to start hearing that there's studies that are backing what we're -- what many firefighters and rescue workers and construction workers are suffering with. And it's about time that these studies coming out of the federal government are challenged and challenged quickly and decisively.
(END VIDEO CLIP)
VELSHI: Right now, the 9/11 Health and Compensation Act that was passed by Congress last summer does not cover cancer treatment for first responders. The National Institute for Occupational Safety and Health says the position will next be re-evaluated in 2012.
They had just re-evaluated and said they don't have enough evidence that cancer is caused by 9/11 should be covered, still not going to get re-evaluated until next year.
ROMANS: Families of first responders don't want to wait another year. They like to look right because they say it's simply not fair.
VELSHI: Sanjay is going to be talking about this later as well at 7:30.
ROMANS: Switching to Peru, authorities bringing murder charges against Joran Van Der Sloot. The prosecutors are seeking a 30-year sentence for the death of Stephany Flores, a Peruvian woman found dead in his Lima Hotel room in May of last year.
Van Der Sloot was once the prime suspect in the disappearance of Alabama teenager Natalee Holloway in Aruba. He was never charged in her murder.
COSTELLO: The U.S. government reportedly set to sue some of the nation's biggest banks. According to the "New York Times" the agency that oversees Fannie Mae and Freddie Mac is looking to recoup billions of dollars lost after the height of the housing bubble. The lawsuits are expected to claim the banks misrepresented the quality of the mortgage securities.
ROMANS: They weren't high quality, darn.
COSTELLO: I just wondered, why did it take so long?
ROMANS: Yes, the cleanup after this mess has been ugly and --
VELSHI: I guess as to why it takes so long, we have seen so many examples of regulators going after financial companies in the past that haven't succeeded and I think people get frustrated with that. So my guess is that they wanted to get it right, take as long as --
ROMANS: They're building their case.
VELSHI: Yes.
ROMANS: Issued subpoenas last year. I think they're running out of time. There are legal deadlines coming up. They have to act now because they will run out of time.
VELSHI: All right, well, for most Americans the economic indicator that matters the most is their job. This morning, the government releases its august jobs report. We get that once a week. It's the first Friday of the new month. This report is expected by economists to show that we added 75,000 jobs in August.
That is far less than the 200,000 jobs or so that we would need to see consistently month after month, to lower the nation's unemployment rate. Although many economists say in this kind of economy, that's pie in the sky.
Yesterday, White House Press Secretary Jay Carney made it clear, Americans want action not political bickering over what day the president is going to speak about his jobs plan.
(BEGIN VIDEO CLIP)
JAY CARNEY, WHITE HOUSE PRESS SECRETARY: What the American people expect the president to do, what the American people expect their senators and congressmen and women to do is listen to them, and take action. They do not give a lick about what day next week the president speaks before Congress.
(END VIDEO CLIP)
VELSHI: You can see President Obama's jobs speech next Thursday at 7:00 p.m., Eastern Time, right here on CNN and that, Carol, is before the kickoff, right?
COSETELLO: Yes. I'm so happy about that.
ROMANS: Full 90 minutes. Big night at Carol's house, popcorn, couple of beers.
All right, still to come, cars stretch as far as the eye can see in parts of Libya. Dan Rivers is going to find out why for us.
COSTELLO: And a potentially frightening new report, thousands of guns missing from their manufacturers and there may be no way to find them. We'll have details on that coming up next.
VELSHI: False anger over Chaz Bono joining "Dancing with the Stars." Here's what some folks are saying on how the show is responding. We'll tell you about that after the break. It's our talk back question of the morning.
(COMMERCIAL BREAK)
ROMANS: A voice said to be former Libyan leader Moammar Gadhafi taunting the world, despite the intense manhunt for him. In the message, the voice declares that Libya's capital has been moved from Tripoli to Gadhafi's hometown search. The voice also called on Libyans to continue the fight against west.
You're also looking at a video right now of NATO targeting barracks in a desert town south of Tripoli. That's where some reports say Gadhafi may be hiding.
VELSHI: All right. Tripoli this morning is a city dangerously close to running out of water. It is believed that Gadhafi loyalists cut the water supply near its main source which is south of the capital in an area that's not controlled by the rebel government. The first relief shipments have begun to arrive in Tripoli's harbor, but much more water, much more water is going to be needed to meet demand across the city.
Libya, as you know, is also a major oil producing country, but right now, it's got a gasoline shortage. Dan Rivers waited in one of the long gas lines that are plaguing the city.
(BEGIN VIDEO CLIP)
DAN RIVERS, CNN SENIOR INTERNATIONAL CORRESPONDENT (on camera): Well, the fuel situation in Tripoli is still pretty bad. There are still incredibly long queues. It's better than it used to be, but check it out. This is the back of the queue for gas. And I want to show you just how long it is. (voice-over): This queue just goes on and on and on. It's ironic because Libya actually has the largest oil supply in the whole of Africa, the ninth largest in the world. Experts say it has some 23 years of oil reserves. And before the war, it used to pump about 1.3 million barrels a day.
But now, all the people in this queue care about is when these petrol queues are going to subside. Some of them say they've been waiting in the scorching heat for hours.
(on camera): And finally, this is the front of the queue. The coastal road is open so it means some supplies are coming in, but you get the idea of just what an agonizing wait it is simply to fill up your car.
Dan Rivers, CNN, Tripoli.
(END VIDEO CLIP)
ROMANS: Wow.
VELSHI: You know, usually in the news business -- they tell you to cut it up and give different shots. That was one of those things where one shot --
COSTELLO: This is unbelievable. You could -- you could run out of gas waiting in line.
VELSHI: And, you know, when you have gas shortages and water shortages, it doesn't matter sometimes that you've overcome a dictator that has denuded your country for decades, people need the basics and it's very agitating when that happens, right?
ROMANS: A functioning government --
VELSHI: Yes.
ROMANS: -- is so critically important. You have a country sitting on the largest oil reserves in Africa, but all those people waiting in line --
VELSHI: To get gas.
ROMANS: -- to put a drop of gas in their gas tank, I mean --
COSTELLO: It's not that they saw many benefits from it anyway.
ROMANS: That's true.
VELSHI: You know, that's a good point. That's a good point. You're right.
COSTELLO: New this morning, 16,000 guns have gone missing from their manufacturers since 2009. That's according to a new report from the Brady Center, an anti-gun violence group. Claims that some of these guns don't have a serial number which means they might be impossible to trace. Some gun industry advocates are disputing those findings.
ROMANS: All right. A referee is tackled and beaten at a high school football game in Sarasota, Florida. It started with a ref and a coach arguing over a call. The ref tries to walk away, but several coaches rush the field. Moments later, a player, a player tackles the ref, coaches and players are facing felony battery charges.
COSTELLO: Just unbelievable.
ROMANS: Whoa.
COSTELLO: Now is your chance to talk back on -- on one of the stories of the day. The question for you this morning, is the criticism against Chaz Bono and ABC fair?
Even if you're not a fan of ABC's "Dancing With The Stars," I'm sure you've heard, hundreds of viewers are not happy about Chaz Bono's invite.
(BEGIN VIDEO CLIP)
CHAZ BONO, AMERICAN TRANSGENDER ADVOCATE: I hope that, you know, fair, open-minded people take the opportunity to get to know me week by week and realize that, you know, there's nothing scary about me and transgender people are, you know, just people like everybody else.
(END VIDEO CLIP)
COSTELLO: But the hopes of acceptance are not apparent yet. On ABC's message board there were angry comments hundreds of them like this one. "I am sick and tired of the homosexual agenda being shoved in my face. What's next? Will Carlson be dancing in a dress? I will not be watching and will also be boycotting "Dancing With The Stars" sponsors.
This isn't the first time a TV show has been accused of pushing an agenda. In 1992, vice presidential candidate Dan Quayle blasted the values of the single and pregnant Murphy Brown.
(BEGIN VIDEO CLIP)
DAN QUAYLE, FMR. VICE PRESIDENT: It doesn't help matters when primetime TV has Murphy Brown, a character who supposedly epitomizes today's intelligent, highly-paid professional woman, mocking the importance of fathers by bearing a child alone and calling it just another lifestyle choice.
(END VIDEO CLIP)
COSTELLO: Today, there are more than 11 million single mothers in America. Can you even imagine an outcry about Murphy Brown today?
Granted, transgender is depicted on mainstream television are more controversial, but "Dancing With The Stars" Executive Producer Conrad Green told "The Hollywood Reporter" we don't have an agenda of any sort. I think the -- I think of the 120 celebrities we've put on the show, we've had I think now three transgender or gay contestants. If that's a homosexual agenda, we're not doing very well at it.
So the "Talkback" question this morning, is the criticism against Chaz Bono and ABC fair? Facebook.com/AmericanMorning, Facebook.com/AmericanMorning. I'll read your comments later this hour.
VELSHI: Looking forward to it.
ROMANS: Yes. Me, too.
VELSHI: All right. Coming up on AMERICAN MORNING --
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I thought I would be out in the street and literally done and be dead. And I guess an angel or somebody or a soul is watching me get to where I had to go.
(END VIDEO CLIP)
VELSHI: You have to hear this guy's story, of how he survived Hurricane Irene after staying too long in his house in New Jersey. We'll have that for you on the other side.
It's 21 minutes after the hour.
(COMMERCIAL BREAK)
ROMANS: "Minding Your Business" this morning.
That jobs report comes out about two hours from now. The most important economic indicator in the world, economists forecast the unemployment rate to remain unchanged at 9.1 percent. How many jobs were created in August? Economists say 75,000 jobs is what they are expecting. If it's worse than that, it could be trouble for the -- for the markets today.
The White House forecasting sluggish economic growth next year. The White House says it will be a slower recovery than first thought. In its latest Budget Office report the administration says unemployment will remain high, not coming down to pre-recession levels until at least the year 2017.
That report and frankly concerns about a weak jobs market pushing U.S. markets lower yesterday. The Dow, S&P 500, and NASDAQ all closing about one percent lower. This morning stock futures are down two. You've got losses in Asian and European markets as people wait for that big jobs report and brace for disappointment.
The U.S. government reportedly set to sue at least a dozen of the nation's largest banks. According to the "New York Times," the agency that oversees Fannie Mae and Freddie Mac wants to recoup billions of dollard lost after the height of the housing bubble. Bank of America, Goldman Sachs, JPMorgan Chase, Deutsche Bank, are some of the banks named in the suit that's according to "The Times." Goldman Sachs and JPMorgan declined our request for comment. The other banks have not responded so far to our call.
Amazon offering to bring 7,000 jobs to California by opening two new distribution centers there. But there's a catch, it's only if lawmakers temporarily stop trying to force the retailer to collect state sales tax for on-line purchases.
And the IRS is giving a break to Hurricane Irene victims. If you live in one of the disaster areas and you filed for an extension on your tax returns back in April, you now have until October 31st instead of October 17th to get those taxes done.
AMERICAN MORNING will be right back after this quick break.
(COMMERCIAL BREAK)
COSTELLO: Six-thirty, Eastern Time. Happy Friday to you. Time for this morning's top stories.
New Orleans under a tropical storm warning. A tropical depression now forming in the Gulf of Mexico could drop 10 inches of rain or more on the Big Easy over the next few days. The Governor of Louisiana has declared a state of emergency with New Orleans facing the threat of catastrophic flooding.
VELSHI: Not too far away, though, fire is the major concern in parts of Texas and Oklahoma. Wildfires have destroyed dozens of homes. They're still threatening hundreds of others. Heat and severe drought conditions have been fueling the fires. Cooler weather, though, may give firefighters a helping hand there.
ROMANS: All right. In about two hours, another kind of forecast altogether, the August jobs report will be released. Forecast of the health of the labor market. Economists surveyed by CNNMoney predicted the economy created 75,000 jobs in August. They expect the unemployment rate to remain at 9.1 percent.
ANNOUNCER: This is CNN breaking news.
VELSH: News developing right now: a growing rift in the once close relationship between Israel and Turkey. The Turkish foreign minister announcing this morning his government has suspended its military agreements and lowered its diplomatic relationships with the Jewish state, giving them until the end of Wednesday to get out of the country.
Ivan Watson live now in Istanbul, Turkey.
Ivan, this is part of growing tensions that have been going up leading to the United Nations General Assembly in about three weeks from now where we are expecting the Palestinians to declare unilaterally their quest for statehood. Tell us what has happened.
IVAN WATSON, CNN INTERNATIONAL CORRESPONDENT: Well, the relations have been deteriorating, Ali, between these two once close Middle Eastern allies for about two years now. But just moments ago, the Turkish foreign minister fired a diplomatic broadside at Israel, saying, basically, that Israel's diplomats here in Turkey, everybody above the level of second secretary -- that means ambassador, console general, charge de affairs -- they have until Wednesday to pack their bags and leave.
They're also formally suspending any military agreements between these two countries and Turkey's announcing it does not recognize the Gaza blockade that Israel has imposed for years now.
It's pretty dramatic. Anybody who hoped these allies would start to repair their relations, that's simply not happening right now. Turkey is standing firm, demanding an apology from Israel for the shooting deaths of eight Turks and a Turkish American passenger on board that Mavi Marmara bloody night of May 31st in the eastern Mediterranean. It's demanding compensation and it wants that blockade lifted from Gaza -- Israel -- Ali?
VELSHI: All right. Ivan, we'll follow this carefully. This is, of course, something Israel didn't want to happen because its relations with Turkey are important, as well as relations with Egypt as we head into this declaration that we're expecting to hear from the Palestinians. Ivan, thanks very much. We'll keep in touch with you on this story.
COSTELLO: This weekend, President Obama will get a firsthand look at some of the damage from hurricane Irene. He'll tour the flood damaged areas of New Jersey, including, of course, the town of Paterson, which has been absolutely ravaged by flooding from the Passaic River.
VELSHI: Now, amid all of the devastation, there is this remarkable story of survival. CNN's Susan Candiotti has got that for us. She's live in Cranford, New Jersey.
What an amazing story, Susan. Tell us -- tell us what it's about?
SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: Hi, Ali and Carol. Good morning to you.
You know, here in Cranford the floodwaters have receded but there's still a huge mess to clean up. A lot of personal belongings line many sidewalks and many neighborhoods. You got washing machines, furniture, you name it. Some people even lost the foundations of their homes.
Well, one man almost and could have lost his life. He panicked when the river started to rise and instead of staying on the second floor -- second story of his house, instead he ran downstairs, opened the front door and dove into chest high water.
(BEGIN VIDEOTAPE)
CANDIOTTI: The river is right in your backyard. You're watching the water go up and then you see your kids' play set in the back of the tree. What are you thinking?
UNIDENTIFIED MALE: I'm thinking it's very dangerous and time to leave this place.
CANDIOTTI: As you're looking outside, what is the storm looking like and what's going on in your head?
UNIDENTIFIED MALE: The house is surrounded by water and I thought about eventually leaving, 3:30, 4:00 in the afternoon on Sunday. So, I grabbed my credit card and my keys. I opened the door, the water rushed in.
CANDIOTTI: Show me where you went.
UNIDENTIFIED MALE: I started walking down here did one of these, I got here and the water is up to here. I walked, I walked. Literally, the water is splashing in my face. I walk up here. This is the lowest point to come up.
So, I literally walk up and it goes to higher ground and I literally grabbed on to the railing here and my neighbor pumping the water out very well --
CANDIOTTI: What did you say to him?
UNIDENTIFIED MALE: I got to get the heck out of here. He said, are you nuts? I said I'm swimming out of here. I'm getting out of here.
CANDIOTTI: Are you walking or sort of swimming?
UNIDENTIFIED MALE: No, I hold on to branches and get pushed over here. I grab on to the pole over here. Let go and get thrown all the way over here.
RAUL ZUCKER: I lost sight of him at the front door and so I decided to come over here. He said, keep an eye on me. This is a great view. So, I walked over here, looked out the window, and I saw him rest on top of that wooden fence. And he started doing a back stroke.
UNIDENTIFIED MALE: Back swam to the bushes over there, and then I see him in the window and gave him a thumb's up.
CANDIOTTI: Did you think your life was on the line?
UNIDENTIFIED MALE: Absolutely. I thought I would be out in the street and literally done and be dead. I guess an angel or somebody or Sal was watching me get to where I had to go. But it was not a point of -- I just had to do it. I have four kids and literally I'm on my own and I had to get out.
CANDIOTTI: You made the decision and you were going for it?
UNIDENTIFIED MALE: Yes. And I brought my credit card and my car keys.
(END VIDEOTAPE)
CANDIOTTI: So he kept that credit card in his mouth and swam away. His wife and kids were somewhere else. They didn't know about his plan ahead of time. Found out afterwards -- weren't happy about it, but obviously very happy that he made it out OK.
Back to you, Ali.
COSTELLO: Susan, I'm not getting, why did the -- was the neighbor's house unaffected and why did his neighbor stay in the house?
CANDIOTTI: Yes. His neighbor wasn't going anywhere. They were under an evacuation order. The neighbor stayed put and he thought -- that's right, he was in a slightly higher ground. But he let his neighbor go for it and there was no one to call; 911 wasn't working. The phones were down.
So, his neighbor decided to swim for it.
COSTELLO: And the other guy decided to stay in the house. They were both really lucky.
CANDIOTTI: That's right.
ROMANS: Wow. That sure is a neighborhood story.
CANDIOTTI: Absolutely. Absolutely.
VELSHI: Susan, thank you.
CANDIOTTI: All right. Up next on AMERICAN MORNING: the president is preparing to go public with his jobs plan, but the presidential -- Republican presidential candidates are also coming up with plans of their own. We got a sneak peek about how they want to put Americans back to work.
Thirty-six minutes after the hour.
(COMMERCIAL BREAK)
VELSHI: In about two hours, the biggest X factor in this country's economic recovery will be released. We're talking about the monthly jobs report from the Labor Department. It is expected by economists to show that 75,000 jobs were created in the month of August.
And if that's true, it's not great news. We really need way more than that. Some say up to 200,000 jobs a month, just to start to put a dent in our unemployment rate -- far more than that if we want to bring it down.
That's why the president is gearing up to deliver a major speech on jobs next week. Joining me right now: my good friend, deputy political director Paul Steinhauser.
Good morning, Paul. You come armed this morning with some brand new numbers.
PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: I sure do, Ali.
Listen, we all know the economy is the top issue with Americans and the jobs the top economic issue. You want some more proof? Check this out, a new CNN/ORC poll out just this hour. It comes six days before that big speech by the president.
Look at this, 68 percent say the most important thing for the Obama administration is to create jobs. Only 30 percent say most important thing is to reduce the budget deficit, the federal budget deficit.
But, look, Ali, there is a partisan divide here. Check out the next number, and Democrats overwhelming, say yes, create jobs, 83 percent. Two-thirds of independents agree. Fifty-four percent of Republicans and only 48 percent of people who say they are Tea Party supporters say creating jobs is more important than lowering the deficit. So, a little bit of a partisan divide there, Ali.
VELSHI: All right. For at least a couple of GOP candidates, Paul, they're coming out with things that look a little bit like the beginnings of job creation plans.
STEINHAUSER: Yes. And let's talk about Mitt Romney, the former Massachusetts governor who's making a second bid for the White House. On Tuesday in Nevada, he's going to lay out his plan two days before the president. But this morning, in about two hours, when he speaks before a Hispanic Florida group, he is going to give a sneak preview.
And this is what he's going to say: "I will make business taxes competitive with other nations, eliminate burdensome regulations and bureaucracy, and support America's workers instead of its union bosses. I will promote exploration of our own natural resources, which will create countless jobs."
He goes on to say, "I will cut federal spending, cap it at 20 percent or less of the GDP. And finally, finally balance our budget."
Now, Jon Huntsman, the former Utah governor, he already came out with his plan. He didn't wait until next week and he did that on Wednesday at a speech in New Hampshire.
It seems "The Wall Street Journal," Ali, really likes what he said, saying that the Huntsman plan seems to be far, far better than some of the frontrunners in the race like Romney and maybe Perry. Here's what they say in their editorial, "Perhaps Mr. Huntsman should be asked to give the Republican response to the president's job speech next week. The two views of what makes an economy grow could not be more different."
And, of course, Ali, "The Wall Street Journal" is very, very influential among fiscal conservatives -- Ali.
VELSHI: All right. Paul, interesting numbers. Thanks so much for joining us. Paul Steinhauser joining us from Washington.
We believe we're taking a quick break, is that right? Are we doing that?
Oh, Christine, why take a break when we can talk to Christine?
ROMANS: All right. I got a quiz for you, Ali. OK. We're talking about jobs with Paul. What is the single biggest insulator against unemployment?
VELSHI: A good education.
ROMANS: That's absolutely right. When you look at some of these statistics, I want to bring this to you, some of the statistics about the different levels of unemployment in this country. These are numbers from last year, 2010 -- so it's the whole year's average. So, right now, we're talking about a 9.1 percent unemployment rate on average in this country. Last year, on average, you had about 8 percent or 9 percent unemployment rate.
But look at this -- a high school diploma, the unemployment rate is 14.9 percent. Look up here, an associate degree, cut that in half, 7 percent. A bachelor's degree, last year the average unemployment rate for someone with a bachelor's degree was 5.4 percent. I mean, less than half of somebody who doesn't have one.
All right. Masters, 4 percent. Professional degree, 2.4 percent. Doctorate, 1.9 percent.
So, we know when you look at the past when you see these low unemployment rates, it's more education.
What about pay? It also stands true for pay. Look at this, somebody with a high school -- less than a high school diploma, makes last year, $444 a week. That's barely enough to live on, right? Somebody with an associate's degree, $300 more a week.
Pump it up to a bachelor's degree, about $1,000 a week, all up to tier two, a professional degree which pays more, by the way, than a doctorate, $1,600.
So, there's this big discussion about is college worth it? Is more education worth it in this economy? So many know somebody who is out of work.
But when you look at higher up the education ladder, those people have better insulation against this terrible economy than people further down, Ali.
VELSHI: Yes. And you know that you're going to get tweets about this and I am from people who say I know people with masters degrees who don't have jobs -- but the statistics, wherever you look at them from, whether the Labor Department, private studies, universities, they bear out exactly the same message: higher education insulates you better against unemployment.
ROMANS: It also shows there's two Americas, I think.
VELSHI: That's right.
ROMANS: We've been talking about these two Americas. There are two Americas. And in that big -- the America that's making more money, those people have a higher education. The question is how do you pay for it?
COSTELLO: Can I ask you a question, Christine? I think that there is a sense if you're paying something like $30,000 a year for your kid's education, does it balance out in the end?
ROMANS: You don't have to pay $30,000 a year for a kid's education first of all. I mean, and I hope that people who can't afford that think I'm not going to send my kid to school because I can't afford it. Most people -- the average student debt coming out of school is $24,000, $25,000 a year. So, think of it.
I mean, if you choose the right major -- a relevant major in a growing part of the economy, you're going to be able to pay back those loans eventually, right? The big question that we need to be talking about in this country is how do you make a good, quality education affordable for everyone? So that you're not bankrupting your family to send a kid to school?
COSTELLO: Right.
ROMANS: That's what really kills me. Community colleges, they're great community colleges, state schools -- you look at the return on your investment to a state school, it's pretty good.
VELSHI: Much higher.
ROMANS: It's really good. So, there are important financial decisions for families to be making, but bottom line is, the unemployment rate is lower if you have a college education and the earnings are higher, period.
COSTELLO: Thank you, Christine.
ROMANS: You're welcome.
COSTELLO: We got it.
(LAUGHTER)
COSTELLO: It's 45 minutes past the hour. Top stories after the break, including the blackmail scandal involving the Italian prime minister, Silvio Berlusconi.
VELSHI: And the company's rock star in the field musical instruments, but now, Gibson guitars is the target of a federal investigation. It is 45 minutes after the hour.
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VELSHI: Forty-seven minutes past the hour. Here's what you need to know to start your day.
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VELSHI (voice-over): We are following breaking news. Turkey says it is expelling the Israeli ambassador and cutting military ties with its close ally, Israel. The decision follows Israel's refusal to apologize for last year's deadly raid on a flotilla headed to Gaza strip.
New Orleans facing a tropical storm warning and the prospect of massive flooding this weekend. A tropical depression now forming in the Gulf of Mexico. It's expected to drop at least 10 inches of rain on the big easy in the next few days.
Crews on fire lines in Texas, however, could get a boost from cooler weather and calmer temperatures, but no rain. A major wildfire near Dallas has burned 40 homes. It's now 50 percent contained. The state is suffering through a record ongoing drought.
The august jobs report is out at 8:30 a.m. this morning. We find out how many jobs were gained and lost last month. Of course, we'll bring you the report the minute it's released. We'll have a great conversation with Harvard economist, Ken Rogoff.
A Rome businessman and his wife arrested for allegedly blackmailing Italian Prime Minister, Silvio Berlusconi. The businessman is accused of paying escorts to attend parties with the prime minister before taking over $700,000 from Berlusconi to keep silent.
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VELSHI: That's the news you need to start your day. AMERICAN MORNING back right after this break.
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ROMANS: Legendary rockers swear by their Gibson guitars. Now, it appears the feds are wailing on the company with claims that Gibson is illegally importing wood for those guitars. Armed agents raided Gibson's factories and headquarters last week, and it's not the first time. CNN's David Mattingly tells us the company's CEO is not happy about being the target of a federal investigation.
DAVID MATTINGLY, CNN NATIONAL CORRESPONDENT: Good morning. It's a case of a classic made in America product at odds with Uncle Sam over how U.S. law is enforced.
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MATTINGLY (voice-over): He makes guitars that make America sound cool, but Gibson's CEO, Henry Juszkiewicz, is being ordered to change his tune.
(on-camera) It sounds almost a little ironic you're playing the blues right now. HENRY JUSZKIEWICZ, CEO, GIBSON: I got the blues.
(LAUGHTER)
MATTINGLY (voice-over) That's because in Late august, armed federal agents raided his Tennessee factories for the second time in two years, alleging the illegal importation of rare protected wood, in this case, ebony and rosewood from India. An affidavit filed by the U.S. Fish and Wildlife Service alleges Gibson falsely labeled the wood shipment to make it sound legal and suspiciously omitted the company's name as the recipient.
But so far, no charges have been filed.
(on-camera) It almost sounds like this company was engaged in smuggling these raw materials into the country.
JUSZKIEWICZ: Well, we were not engaged in smuggling. We have been buying fingerboard stock on a regular basis from India for 17 years.
MATTINGLY (voice-over) On the neck of a guitar, the tropical hardwood is prized for its look and durability, but it's subject to a law called the Lacey Act, aimed at fighting black market trade and protected animal parts and plants and anything made from them.
MATTINGLY (on-camera): But the material that came in the box from India looks just like this.
JUSZKIEWICZ: Looks very similar.
MATTINGLY (voice-over) Juszkiewicz says the fingerboards Gibson imported from India were confiscated as illegal wood by the federal government.
JUSZKIEWICZ: The law says that if a guitar or instrument of any kind crosses a boarder, you have to know the specie of wood every component is made of and where it came from.
MATTINGLY: If this is true, could hundreds of international stars like Paul McCartney and BB King risk seeing their Gibson's confiscated at the border?
JUSZKIEWICZ: Michele Obama gave a Gibson guitar to the wife of the president or prime minister of France just a year ago.
MATTINGLY (on-camera) The first lady may have broken the law?
JUSZKIEWICZ: Yes.
MATTINGLY (voice-over) The Lacey Act does give federal agents broad authority to pursue smugglers. But, if you own a Gibson don't worry. Well, we asked the U.S. Fish and Wildlife Service for clarification, it released this brief statement. "We target corporations and individuals who are removing protected species from the wild and making a profit by trafficking them." And right now, in spite of Juszkiewicz strong claim of innocence, Gibson is a target.
JUSZKIEWICZ: Nightmare. It's a nightmare.
MATTINGLY (on-camera) It took almost a week before Gibson got back into full operation, but the damage had already been done. Just the shutdown of that one day with the materials that were taken cost the company over a million dollars.
(voice-over) And now, the maker of the guitars that have commanded the spotlight for over 100 years has no choice but to play on, and wait for its day in court.
(END VIDEOTAPE)
MATTINGLY (on-camera): No word from U.S. Fish and Wildlife Service, Department of Interior, or the Department of Justice about when or if charges might be filed. Back to you.
ROMANS: David Mattingly reporting, thank you.
COSTELLO: We asked you to talk back on one of the big stories of the day. We asked you this question, is the criticism against Chaz Bono and ABC fair?
This from Jessica, "I don't see what the issue is. I think that it's great that people try to be themselves, and we should want that for every person. If you don't like it, change the channel, but don't be mean. I might actually start watching the show."
This from James, "I don't watch the show. I think the show's kind of stupid, and I think the controversy is even more stupid. He's not forcing his way onto the show. Did everyone forget that produces make these decisions? Yes, he should be on it if everyone involves want it. This is leaving a bad taste in my mouth because I fear that this isn't as much about making social strides as it is about using him for cheap publicity."
And this from Heather, "No, it's not fair. What a person's gender decision should not be a reason to slam the show or the person. Chaz's decision to become a man was his and his alone. Let me add. Many of those who are crying out on this saw no issue with Bristol Palin being on the show. A young woman who got pregnant out of wedlock and is raising her child as a single mother. Did her appearance push an agenda that was supportive of pre-marital sex?"
Keep the conversation going. Facebook.com/americanmorning.
ROMANS: I just thought it was about the dancing.
(LAUGHTER)
VELSHI: Yes.
COSTELLO: Silly you, Christine.
VELSHI: I'm only fascinated by how controversial things can become.
ROMANS: Watching normal people get shin splints.
(LAUGHTER)
VELSHI: All right. Coming up ahead on AMERICAN MORNING. It's been six years since Hurricane Katrina, and New Orleans finds itself preparing for another potentially deadly storm. It is 55 minutes after the hour.
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