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American Morning
Bank of America Announces Major Restructuring; Rick Perry Criticized for Remark on Social Security; GOP Presidential Hopefuls to Debate in Florida; New Poll: Perry Takes Big Lead; Poll: Perry Widens Lead; Terror Threat Investigation Ongoing; DSK Questioned by French Police; Who Can Get the Economy Moving?; Williams Loses Cool in U.S. Open Upset; Cyndi Lauper Flubs National Anthem; Serena Williams Loses Match, Loses Temper; Nadal, Djokovic Face Off; Maine Kindergarteners Get iPads
Aired September 12, 2011 - 06:59 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEO CLIP)
CHRISTINE ROMANS, CNN ANCHOR: Bank of America could soon slash its work force. We'll tell you why and what jobs are said to be on the chopping block.
CAROL COSTELLO, CNN ANCHOR: Ten years after the twin towers fell, the 9/11 memorial at Ground Zero finally opens to the public today as investigators continue their search for three terrorist who may be planning an attack on New York or Washington.
ALI VELSHI, CNN ANCHOR: There's never been a debate like this in president's politic. Tonight, live on CNN, GOP candidates face-off in front of the Tea Party. a crucial test in a key state. Will Rick Perry add to his lead? Will Michele Bachmann be able to get off the sidelines?
ROMANS: Williams get angry, then she gets upset. Her latest outburst and stunning loss at the U.S. Open on this AMERICAN MORNING.
(END VIDEO CLIP)
COSTELLO: And good morning to you. Happy Monday. It is September 12th. I'm Carol Costello.
ROMANS: I'm Christine Romans.
VELSHI: And I'm Ali Velshi in Tampa. Welcome to the special split edition of AMERICAN MORNING.
COSTELLO: And good morning to you. Happy Monday. It is September 12th. I'm Carol Costello.
ROMANS: I'm Christine Romans.
VELSHI: And I'm Ali Velshi in Tampa. Welcome to this special split edition of AMERICAN MORNING. We're live here in Florida for tonight's Tea Party debate, and more on that just ahead. Christine? ROMANS: But first, a massive shakeup expected to be announced in a couple of hours by one of the nation's biggest banks, the biggest bank in the country. Bank of America expected to lay out a restructuring plan that will no doubt affect thousands of employees and even more customers.
Felicia Taylor is following the latest developments. And Bank of America not saying anything ahead of its CEO, who will be speaking at 9:00 to investors in New York, but everyone bracing for a big restructuring, meaning job cuts.
FELICIA TAYLOR, CNN BUSINESS CORRESPONDENT: We've been hearing about this for some time. Allegedly the number's going to be possibly between 30,000 and 40,000. Clearly, a lot of employees that are at stake in this. It will happen over a number of years. It's not going to happen right away. It's going to take some time.
But there's allegedly also some word that they're going to have branch closings as well. But we'll hear from Brian Moynihan at the 9:00 conference that's going to happen today in New York.
COSTELLO: So I mean, 30,000 to 40,000 jobs is pretty darn serious, but give us the bigger picture. Put it in perspective for us.
TAYLOR: Well, what it means -- obviously, the bank has been going through restructuring for some time. They acquired Merrill Lynch, they acquired Countrywide Financial, MBNA. They've been having to absorb a number of entities themselves. So what they've got to do is now make sure they're company is efficient. And that's what's going to happen in terms of the next couple of years, how they're going to restructure the company and become what Bank of America would like to be, which is -- it still is one of the largest lenders out there, but it's fighting for that position with Wells Fargo.
COSTELLO: For those that have money in bank of America, what does it mean?
TAYLOR: Well, I mean, your money is still safe. Nobody has to worry about that. Obviously, your money is still safe. But it may be more difficult to access banking. But they're looking at, you know, streamlining their processes in terms of doing things more online, not having as many actual, you know, ATMs next to each other. Things like that.
ROMANS: You've seen in recent years how you can see -- you have several B of A choices in New York. And with global banking and the like maybe you don't need so many branches.
TAYLOR: Maybe you don't. I mean, maybe this isn't such a bad thing. They may be doing something that's more efficient and at the end more cost effective. So we'll see how it --
ROMANS: The stock is down 40 percent.
TAYLOR: It's down 48 percent. ROMANS: so that's telling you investors have been screaming that something has to be done by the way this company does business. Thanks, Alicia.
COSTELLO: Let's talk about another screamer, that will happen tonight at Florida. Take it away, Ali.
ROMANS: Yes. Hi, Ali.
VELSHI: Well, listen we are live here at the Florida state fairgrounds in Tampa. It is the site of tonight's big CNN Tea Party debate. Eight Republican candidates will be onstage tonight. But many analysts are calling this a two-person race. A new CNN-ORC poll released just an hour ago shows that Rick Perry is building an even larger lead.
Jim Acosta joins me now. Jim, a lot happening today. We're going to see whether Rick Perry can keep that lead, whether Mitt Romney is really going to sort of try and take a piece out of him, and what happens to Michele Bachmann in this. She seems to have been losing some traction?
JIM ACOSTA, CNN POLITICAL CORRESPONDENT: Right. And this debate comes as not every candidate in the GOP field is on the Tea Party bus. There is one candidate is in the driver's seat, Rick Perry, and there are others who are trying to get onboard.
(BEGIN VIDEOTAPE)
ACOSTA: Texas Governor Rick Perry has ditched his cowboy boots for running shoes, staying far ahead of the Republican pack. The latest CNN-ORC poll finds Perry way out in front with 30 percent, nearest rival Mitt Romney at 18 percent. With the rest of the field looking to play catch-up, the CNN Tea Party debate in Florida could be a Social Security smack-down in a state where the program is crucial to seniors.
RICK PERRY, (R) PRESIDENTIAL CANDIDATE: It is a Ponzi scheme to tell our kids that are 25 or 30 years old today, you paying into a program that's going to be there.
ACOSTA: After Perry doubled down on his call for an overall of Social Security at the last debate, Romney pounced.
MITT ROMNEY, (R) PRESIDENTIAL CANDIDATE: The governor says states ought to be able to opt out of Social Security. Our nominee has to be someone who isn't committed to abolishing Social Security.
ACOSTA: On CNN's "JK USA" Michele Bachmann piled on.
REP. MICHELE BACHMANN, (R-MN) PRESIDENTIAL CANDIDATE: What I think is that America needs to keep its promise to senior citizens. I talk to them all the time. I love senior citizens.
ALEX CASTELLANOS, CNN POLITICAL CONTRIBUTOR: You usually don't start a presidential campaign by setting grandma's hair on fire. But that's what Rick Perry did when he not only called Social Security a Ponzi scheme, he implied he might undo it if he could go back 70 years.
ACOSTA: That kind of clash could make the debate another road sign indicating where the GOP is headed, toward more conservative Tea Party candidates like Perry or more moderate contenders like Romney. The former Massachusetts governor stepped up his courtship of Tea Partiers only after poll numbers started sagging.
UNIDENTIFIED MALE: Are you a member of the Tea Party?
ROMNEY: I don't think you carry cards in the Tea Party.
ACOSTA: Some Republicans say there's good reason for caution. Perry's doubts about climate change might appeal to Tea Party voters.
PERRY: Just because you have a group of scientist whose stood up and said here is a fact. Galileo got out-voted for a spell.
ACOSTA: Centrists like Jon Huntsman worry those views could alienate independent voters and cost Republican the White House.
JON HUNTSMAN, (R) PRESIDENTIAL CANDIDATE: In order for the Republican Party to win, we can't run from science.
(END VIDEOTAPE)
ACOSTA: One of the fascinating things to watch at tonight's debate is going to be the fact we're going to have Tea Party activists actually asking questions of the candidates. That could brew up all kind of trouble for people like Mitt Romney. But the tea might taste just fine for folks like Rick Perry, and there are other candidates you saw in that poll, folks like Jon Huntsman and Herman Cain, who just want a seat at the table.
VELSHI: Right. And Jon Huntsman is going to be on with us, Herman Cain, both of them are going to be talking to us a little later in the show, in about an hour, actually. We're going to discuss their plans. Herman Cain enjoys very solid support from his supporters, but he is not been able to grow that. Jon Huntsman jobs and economic plan got endorsed by the "Wall Street Journal" but he's still stuck in the lowest of single digits.
ACOSTA: And the question for Jon Huntsman, is he the candidate for this Republican moment right now? This is very much a Tea Party moment for the GOP. That is why people like Rick Perry are doing so well. The question for candidates like Jon Huntsman is, is this your time?
VELSHI: Right. And then there's the question of whether the candidates who do the best with the Tea Party are able to be the ones who can do the best as Republican candidates. We'll talk to a couple --
ACOSTA: Can they beat Barack Obama?
VELSHI: Can they beat Barack Obama. We'll talk about that. Jim, good to see you.
Rick Perry and Mitt Romney, by the way, sure to tangle again over the Social Security issue that we just talked about. CNN's John King asked Vice President Joe Biden if Rick Perry has a point when he refers to Social Security as a Ponzi scheme.
(BEGIN VIDEO CLIP)
JOHN KING, HOST, "JOHN KING USA": In one of their debates, Governor Perry said if you look at the statistics from 2036, Social Security's paying out more that it's paying in, therefore he says it can't keep its promises. So it's a Ponzi scheme. Is Social Security a Ponzi scheme?
JOE BIDEN, VICE PRESIDENT OF THE UNITED STATES: No, it's not a Ponzi scheme. He should go back and find out who Ponzi was. He was an individual, it was a different deal. But no, it's not a Ponzi scheme. It is secure through 2036, and to fix it is not hard.
(END VIDEO CLIP)
VELSHI: Be sure to catch the rest of John King's interview with Vice President Biden tonight at 7:00 p.m., which is the pregame, really, to the debate, right here on CNN. Carol?
COLMES: Let's talk some more about Social Security, shall we, Ali, because now it's your turn to talk back on one of the big questions of the day. The question for you this morning, will Rick Perry's stance on Social Security hurt his campaign? How important is the issue of Social Security in a presidential campaign? Let me rephrase that. How important are elderly voters in, say, oh, Florida, to winning a presidential election? I would say really, really important.
You will hear about Social Security any tonight's CNN Tea Party debate now that Rick Perry has called Social Security a Ponzi scheme.
(BEGIN VIDEO CLIP)
PERRY: It is a monstrous lie. It is a Ponzi scheme to tell our kids that are 25 or 30 years old today you paying into a program that's going to be there. Anybody that's for the status quo with Social Security today is involved with a monstrous lie to our kids, and it's not right.
(END VIDEO CLIP)
COSTELLO: But although economists say Social Security needs a fixing, Social Security has enough money to pay full retiree benefits for the next 25 years, and 77 percent of benefits for 60 years after that. Even Republican guru Karl Rove says Perry's Ponzi remarks are out of line.
(BEGIN VIDEO CLIP)
KARL ROVE, FORMER BUSH ADVISER: They're toxic in a general election environment, and they're also toxic in a Republican primary. If you say Social Security is a failure and ought to be replaced by a state-level program, then people are going to say what do you mean by that, and make a judgment based on your answer to it.
(END VIDEO CLIP)
COSTELLO: But other conservatives, like CNN contributor Eric Erickson, are applauding Perry's straight talk. He said Social Security is sick, and besides in 2010, running in Wisconsin, then candidate Ron Johnson campaigned aggressively on Social Security being a Ponzi scheme, and he beat incumbent Russ Feingold.
So the talk back question today -- will Rick Perry's stance on Social Security hurt his campaign? Facebook.com/AmericanMorning. I'll read your comments later this hour.
And also, do not miss it tonight, the CNN Tea Party debate live from Tampa, Florida, the site of the 2012 Republican national convention. Wolf Blitzer is your moderator. The debate starts tonight, 8:00 eastern right here.
ROMANS: And Perry wrote an op-ed in "USA Today" talking about we have to have straight talk but never really laying out how to fix it. So he's still out there talking about Social Security. He did not call it a Ponzi scheme in this article, but there you go.
It's been a long time coming, too long coming, but today the National September 11th Memorial is opening to the public for the very first time. It's still an active construction site so visitors will need to secure reserve passes in advance to be allowed in. Thousands of requests have already been processed. The National September 11th Museum is expected to open at ground zero one year from right now.
COSTELLO: Investigators are continuing their search for a terrorist who may be planning attacks. Sources telling CNN they're still conducting security checks following up on credible but unconfirmed leads about as many as three potential attackers who could be trying to use vehicle bombs to strike New York or Washington.
ROMANS: Also developing this morning, we're now hearing from sources that an American who was kidnapped in Pakistan has been released. A senior police official told CNN the American and a Pakistani were stopped in the city of Quetta and taken away at gunpoint. Still not clear who the kidnappers were. We'll continue to bring you more information as we get it. The American now said to have been released this morning.
COSTELLO: Well, that's a good thing.
Texas wildfires finally coming under control. The worst may be over. Fifty percent of the blaze now contained, but the nightmare, of course, just beginning for so many -- 1,500 homes burned to the ground, six people still missing. Residents of four subdivisions are finally being let back into their homes. More neighborhoods expected to open up throughout the week.
So let's head to Atlanta and Rob Marciano. No relief for Texans, but at least a little better.
ROB MARCIANO, AMS METEOROLOGIST: Yes, not for a few days, but we have some hope during the end of this week. This coming on the heels of a report from NOAA that this was the second warmest summer on record for the entire U.S. and the warmest for Texas, Oklahoma, New Mexico, and Louisiana.
It is going to be hot again across Texas, 101 expected in Dallas, 104 expected in Austin. We will see a cool down towards the end of the week, but until then it's going to be kind of hot. In Mexico, it's caput, none of that moisture getting into Texas. Maria, tropical storm about 150 mile north of Puerto Rico going to take a pass similar to Katia and affect Bermuda. Katia now is approaching Northern Ireland with some big time winds. It's going to be slamming into the northern part of the U.K. here over the next day or two.
This front will help push away Maria. It will also drive down cooler air. So this hot will be short lived. We'll probably see a little in the way of cool weather towards the end of the week.
By the way, La Nina has returned. It didn't really go anywhere. It's one of the reasons we had the tumultuous weather last winter. We can expect driving conditions across the south and wetter than normal conditions in the Ohio valley, much like we saw last winter. We're talking about a crazy hurricane season and then now we're talking about potentially a repeat of what we saw last winter.
Meanwhile, in Tampa, Ali, a little steamy this morning, but lovely, nonetheless, about 90.
VELSHI: Yes, a little bit. I don't know that the black three- piece suit was really the best of planning.
MARCIANO: You left the seersucker at home, did you?
VELSHI: The seersucker is in Atlanta. In fact, if you could just stop by my place in Atlanta, box that seersucker up and send it to me, because if I'm hanging around here, I'm going to need something other than this.
MARCIANO: When you say jump, I say how high, Ali. I'll get right on that, buddy.
(LAUGHTER)
VELSHI: Rob, good to see you. Thank you, sir.
Still coming up this morning, I am in Tampa, as Rob said. Tea Party voters are saying talking points will not cut it tonight. We're talking about the lines that could make or break a candidate tonight. I've got two guests who know a lot about this. We'll be talking to them rye after this break. Stay with us.
(COMMERCIAL BREAK)
VELSHI: Welcome back. We're live in Tampa ahead of tonight's CNN Tea Party Debate.
And a new poll showing Texas Governor Rick Perry is out with a big lead. The Tea Party may be a huge reason for that.
Joining me now is CNN Contributor Dana Loesch. She is the founder of the St. Louis Tea Party, and CNN political contributor Alex Castellano. Good to see both of you.
DANA LOESCH, CNN CONTRIBUTOR: Good morning.
ALEX CASTELLANO, CNN POLITICAL CONTRIBUTOR: Good morning.
VELSHI: Let's talk, Alex, about this, you and I got into it a little bit about the debt ceiling about the issue of jobs. While the Tea Party and Republicans have done a remarkably effective job starting from before the last midterm elections in convincing Americans that the debt is the most important problem, we have come back to the fact that the failure to create jobs in this country on a consistent basis is going to be a more important from here until the election.
We have only heard from a few of these candidates, a good jobs plan. Are they going to be under pressure tonight to put the rest of Jon Huntsman and Mitt Romney and come out with plans?
CASTELLANO: They're going to be under pressure to talk about jobs and explain what they do, but what defines these voters is not the solution, jobs. It's what they think the problem is, which is Washington. There's a lot of anti-Washington anger here. They see that Washington as a - I would say as a corrosive force that is sucking the life out of the economy. Washington's doing well, but America's not.
So that's what Perry's doing. He's connecting with that anger that you see in that room. You know, it's how do you sell Excedrin in this country? You don't sell Excedrin, you sell the headache.
VELSHI: Right, right.
CASTELLANO: You sell the problem. And that's what I think you're going to see here tonight.
VELSHI: And Dana, you are part of this new phenomenon that has really become one. I was talking to Amy Kremer earlier who said, you know, the Tea Party could well decide the next Republican candidate.
Let's take a look at some new poll. A brand new polling this morning from CNN/Opinion Research Corporation, which gives Rick Perry a remarkable lead. On the left of your screen, you see the approvals within Tea Party supporters. On the right, it is all Republicans. Look at that.
Even within the Tea Party, Rick Perry has a remarkable, almost double, over what Romney is getting. Sarah Palin not in the race is coming in at third. Ron Paul -- Michele Bachmann's nowhere on that list. She comes in at four percent on both sides, whether it's among the Tea Party supporters or all others.
Now, if you look at Republicans generally on the right side of the screen, the lead between for - that Perry has over Romney is tighter and Romney and Perry - Romney and Palin are neck and neck. Give me a sense of what you make of this.
LOESCH: Well, it's a very interesting poll in that even with the Tea Party with this particular poll, Bachmann isn't in the top three or four.
VELSHI: Right.
LOESCH: That's incredible in itself.
VELSHI: We associate her so closely with the Tea Party Movement.
LOESCH: Right. Well, you know, and I think history is typically prejudiced against candidates who don't come from the gubernatorial poll. Now, I don't know how much of that plays into it. I know it needs a little importance. If I'm looking at a particular candidate, I'm measuring up their executive experience.
VELSHI: Right.
LOESCH: And I like Bachmann. I think she has a good record. But, ultimately it comes down to who has the executive experience.
VELSHI: Right.
LOESCH: And I think maybe that has something to do with this particular poll. It's interesting in that Perry leads in both the Tea Party and Republican perspectives.
VELSHI: That's right.
LOESCH: That's incredibly interesting. So I think that what he's going to have to continue to do, obviously, is to keep that lead over Romney. Romney is nipping at his heels right now -
VELSHI: Yes.
LOESCH: -- and I think Romney obviously does better with Republicans. He's not a Tea Party - there isn't really a Tea Party candidate -
VELSHI: Right.
LOESCH: -- but he's definitely not a Tea Party candidate. At the last debate he said, well, I identify with a lot of the things that the Tea Party stands for. And, of course, grassroots picked up on that. But a lot of the things that they stand for -
VELSHI: Right.
LOESCH: -- as opposed to everything? It's just so constitutional issue. VELSHI: Well, that becomes tricky, Alex. Because a lot of the things the Tea Party stand for that have certainly been the most newsworthy, are not the things that some Republicans and plain fiscal conservatives stand for.
So at what point does that start to - to parch itself out?
CASTELLANO: Well, you know, right now nothing unites the people of Earth like a threat from Mars. And I think the biggest threat in the Republican Party and among Tea Party voters is the economy and is a concern that America is in economic decline.
VELSHI: Right.
CASTELLANO: So we're going to leave our children something less of a country.
VELSHI: And over the course of the next 14 months -
CASTELLANO: So that unites (INAUDIBLE).
VELSHI: -- is that going to start to squeeze out the more divisive social issues that some parts of the Tea Party are involved in?
CASTELLANO: I don't think so.
LOESCH: I don't think - yes. I don't think anyone - and I'm not saying that attention to social issues is irrelevant or that these issues are somehow unimportant, but right now that's not what's going to pay the bills.
VELSHI: Right.
LOESCH: That's not what's going to put bread on the table or pay the mortgage, so on and so forth. People are focused on the economy.
VELSHI: Right.
LOESCH: It comes down to jobs. It comes down to easing up on regulations and backing off of the market a little bit and allowing these businesses to be able to do what they do best, which is create job, add to the tax base, increase revenue.
CASTELLANO: I think if you had a slogan that for a candidate coming out of this survey you'd say, if you fix Washington, America can achieve anything.
VELSHI: Right.
CASTELLANO: We can grow again. And that's I think the candidate, the voters are looking for.
The other thing this survey tells you, is that if last election was hope and change, this one is about strength and certainty. I think Americans feel that the economy, the country, is coming apart. VELSHI: Right.
CASTELLANO: And Rick Perry, Texas directness.
VELSHI: Sure.
CASTELLANO: You may agree or disagree, but you respect that he's - knows who he is, know what's he believes. And that seems to contrast fairly well at this moment with Mitt Romney, who voters don't seem to be that certain who's - who he is and who he's for.
VELSHI: Who are you watching closely tonight?
LOESCH: I'm watching Perry. I'm hoping - I'm looking to see whether or not he's going to be as strong in defending his stances as he is on offense. Because he had some really weak answers last debate. And if he's going to solidify himself -
VELSHI: Yes.
LOESCH: -- as a serious frontrunner, he needs to do with defense.
CASTELLANO: If he keeps having weak answers like he's had that has gotten him to 30 percent, he's going to get the nomination.
VELSHI: It's not a bad problem to have.
CASTELLANO: Yes. I think Michele Bachmann is one to watch tonight.
VELSHI: Yes.
CASTELLANO: Because if she can make some wind - if she can take some of the wind out of Perry's sail, this is back to being a competitive race.
LOESCH: Yes.
VELSHI: Alex, Dana, great to see you. Thank you so much. And we're watching tonight with you - Carol, Christine.
ROMANS: All right, Ali.
COSTELLO: Thanks, Ali.
Just ahead on AMERICAN MORNING, a stunner at the U.S. Open and what could be a match for the ages on the men's side today. We're going to talk to "Sports Illustrated's" John Burton (ph) about one of the most action packed sports weekends of the year.
ROMANS: And we know your little toddlers love their gadgets. But a school in Maine is giving iPads to each of its kindergartens. It says educational software on the iPad could help teach students how to read. But is this the best - I mean, is this the best way to do it? More on this story later. (COMMERCIAL BREAK)
ROMANS: Welcome back to AMERICAN MORNING. Now "Minding Your Business."
Fears about the debt crisis in Europe pushed U.S. markets down on Friday. The Dow, NASDAQ and S&P 500, they all lost more than two percent. And this morning, U.S. future are trading sharply lower again ahead of the opening bell. Why? Because the world markets are down sharply in both Asia and Europe overnight.
Fears about Greece potentially defaulting on its debt, those fears grew over the weekend. Now, despite reassurances from the Greek prime minister that the country would work out its debt problems, it would stay in the European Union, markets are skittish and not really believing that. More protests and strikes expected across Greece today after a new property tax was introduced on Saturday.
We're waiting for word on just how many jobs will be slashed at Bank of America and how many branches will be closed. Bank of America CEO Brian Moynihan will speak in an investor conference in New York City. He is expected to detail future restructuring plans for the bank. Some reports say the bank could cut up to 40,000 jobs, to close as many as 600 branch locations as part of the plans. Bank of America will not comment officially on these reports.
Gas prices edging higher in the national average for a gallon of gas is up six cents in the past two weeks - two weeks rather. That's up a $1 from a year ago. Analysts said not expecting any major spikes in the near future, but saying gas prices are up due to higher oil prices.
Don't forget, for the very latest news about your money, check out the all-new CNNMoney.com.
AMERICAN MORNING will be right back after this quick break.
(COMMERCIAL BREAK)
VELSHI: Welcome back to Tampa, the site of tonight's CNN Tea Party debate. Here's a quick look at some top stories.
A brand new CNN/ORC poll shows that Texas Governor Rick Perry is leading the field of current GOP candidates. Perry's polling at 30 percent nationwide, Mitt Romney following at 18 percent.
The 9/11 memorial services are over, but investigators are still searching for terrorist who may be planning attacks. Sources telling CNN they're still conducting security checks and following up on leads about as many as three potential attackers who could be trying to use vehicle bombs to strike New York or Washington, D.C.
Former International Monetary Fund Chief Dominique Strauss-Kahn has been questioned by French police about the alleged attempted rape of a writer that's according to one of his lawyers. Strauss-Kahn returned to Paris last month after the sexual assault case involving a hotel made in a New York City hotel was dropped.
That's it from Tampa for now let's go back to Christine in New York.
ROMANS: All right, Ali. Good morning. We'll be talking a little bit about Tampa here in this next segment because it looks like Rick Perry is gaining some real traction in the race for the White House.
In the latest CNN/ORC poll, Republican voters were asked, which GOP candidate is most likely to get the economy moving. Perry coming out on top with 35 percent, wow, the Texas governor got 35 percent, 26 percent selecting Mitt Romney.
Ron Paul, Sarah Palin were well back down the list. Now let's talk about these poll numbers and what the economy might look like under a President Perry.
We're joined by the Greg Valliere, chief political strategist of the Potomac Research Group. He's live in Washington. Good morning.
GREG VALLIERE, CHIEF POLITICAL ANALYST, POTOMAC RESEARCH GROUP: Hi, Christine. How are you?
ROMANS: So I'm great this morning. Happy Monday.
VALLIERE: Thank you.
ROMANS: It looks as though Republican voters think that Perry has got whatever it takes to get -- they have more confidence in him for the economy?
VALLIERE: So far it's mid-September of 2011.
ROMANS: Yes, it is.
VALLIERE: There's a long, long, long, long way to go and I think Perry still has to define himself and clarify a lot of controversial things he said, but he's the "it" guy. He's got the sizzle right now, no question.
ROMANS: Let's talk about those controversial things, one of them is Ben Bernanke saying he was treasonous and some people said that was a gaff. That was just a lack of disciple early on.
Then he went out there and very kind of pointedly in a campaign just a few days ago, in a debate a few days ago called Social Security a Ponzi scheme. That's kicking up dust now for almost a week.
VALLIERE: You know, I can understand why he said those things. There's a little bit of truth. I mean, Bernanke hasn't been perfect. Social security needs to be fixed, but there's an issue about how reckless his rhetoric is. There's an issue about his temperament. In my world, talking to institutional investors, I think there would be serious concern if the markets thought a politician would start meddling in monetary policy.
ROMANS: Let's talk about job creation. I mean, does Perry have what it takes and does he have the background to create jobs? When you look at Texas, you can see job creation in Texas.
You can see a population that's growing in Texas. It created nearly 40 percent of all new jobs in this country since the recession. Does Perry get credit for that?
VALLIERE: Some, but not all. I think the jury is very out how much of it was his doing, just as I think you could argue that the mediocre job growth with Mitt Romney in Massachusetts was attributable to other factors.
But it's an argument he's going to make. It's a case he's going to make and the country, I think, would listen to anybody who thinks they can create jobs, because we're not creating any now.
ROMANS: Who do you think Wall Street would want? I mean, would they want a Perry presidency? Would they want at more moderate presidency like, I guess, a Romney presidency? Does it matter who else is on the ticket?
VALLIERE: No question in my mind, Christine. It would be Romney. Romney is the ultimate Chamber of Commerce guy. He's pro- business. He's from the Wall Street community, Bane capital, he understands Wall Street.
His comments on Bernanke were a little troubling, but I think the markets clearly would root for Romney over Obama or over Perry. And you've got say, again, it's September 12th in 2011. I think if the election were held tomorrow, a ticket of Romney and let's say Marco Rubio of Florida would be favored.
ROMANS: Would win over Barack Obama?
VALLIERE: Yes. If the election were held today, I think so, yes.
ROMANS: And what if it was a Perry ticket for the Republicans?
VALLIERE: Very unclear. I think -- I can guarantee you, Christine that within the White House, they would be elated, ecstatic, if they got to run against Perry, not Romney.
Of course, Jimmy Carter's White House said that about Ronald Reagan and they lived to regret it, but I think the White House would love to run against Perry.
ROMANS: I can't have you and your vast knowledge about Wall Street the way the world works and not ask you about what's happening overseas right now. We're looking at the euro zone. I mean, literally shaking to its core. Worries about Germany and Germany's worries about Greece all of this a big problem in the markets overnight. This is going to be tumultuous next few weeks and months. Isn't it?
VALLIERE: This is actually going to be a very tumultuous day, Christine. I think that there's more and more resignation in Western Europe that they may have to throw in the towel.
Angela Merkel has been heroic in trying to keep things together, but her own voters, German citizens, are saying, why reward these countries that can't get their act together?
So I think more and more smart people in Europe are going to talk about booting Greece out of the E.U. But I'm not sure that's enough, because French banks and others will be left holding huge debts. This is a bad story, and we haven't bottomed out yet.
ROMANS: Yes, if you think it doesn't matter to you, just take a look at your 401(k) because you got U.S. banks in there and everything happening in Europe, our biggest, humongous trading partner, second biggest trading zone in the world. Greg Valliere, always nice to see you, Potomac Research Group. Come back again soon, Greg.
VALLIERE: You bet.
COSTELLO: We asked you to "Talk Back" on one of the big stories of the day and we asked a question about Rick Perry. Will Rick Perry stands on Social Security? You heard his campaign, you know, it called it a Ponzi scheme.
This is from Chad, "it will only hurt him if it can't lay out a plan for what he wants to do to replace it." This is from Jody, "anyone following our government, its policies and our elected officials knows the money bade to seniors is coming out of the bank rolled fund, but out of the taxes paid for our workers the month before. I for one would rather know the truth about what's going on."
This from Faye, "Rick Perry correctly labeled Social Security as a Ponzi scheme. I'm a senior from the Baby Boom generation and told in 1972 by a professor that Social Security would not be there for those of our age group. Seniors are politically astute to face reality. If Perry is wrong, show us the money.
I do not believe the truth will prevent Perry's chances in the primary or general election. I must reiterate the truth. So you can have all of the information. Social Security has enough money to pay full retiree benefits for the next 25 years. Baby boomers are going to be perfectly fine." It also has --
ROMANS: The professor was wrong? When he told her --
COSTELLO: Remember, in 1984 I was told as a young person that Social Security wouldn't be here for me when I retired, but it's going to be. So they say that a lot these politicians through the year, 77 percent of benefits for 60 years after that. So Social Security isn't in the greatest health. It needs fixing, but it's not dying.
ROMANS: But, you know, Perry's point is that any kind of investment that you made, that only got 76 cents back on the dollar, you wouldn't want to make that investment. That's his point, but it needs to be fixed. Diane Swank, a noted economist, it's very easy to fix it she said. The problem is that politicians don't fix it.
COSTELLO: Is it a Ponzi scheme?
ROMANS: Is it a Ponzi scheme by definition? No. It's an investment vehicle. You know, a Ponzi scheme is a financial scam. It wasn't set up to be a scam. A Ponzi scam was a scam from the very beginning. This wasn't a scam. This was a safety net. There's a difference.
COSTELLO: Just so you know. Just so you know. So I hope that -- Faye, you're OK. Keep your comments coming, Facebook.com/AmericanMorning. We'll read some more of your thoughts a bit later.
ROMANS: It doesn't mean it they can't fix it. It needs to be fixed. Just fix it.
COSTELLO: You're going to get yourself a Social Security check. Social Security likely to pay a big part in tonight's debate. So don't miss it. The CNN Tea Party debate live from Tampa, Florida, the site of the 2012 Republican National Convention. Wolf will be your moderator. That's tonight at 8:00 p.m. Eastern.
VELSHI: That was a very helpful discussion, because there is a difference between something that is not well managed that needs to be fixed and something that is a scam.
ROMANS: Ali, do you think Social Security is a Ponzi scheme?
VELSHI: No. It's transparent. We know what the problem is. You're absolutely right, Christine. Both Medicare and Social Security can be fixed. They're both fixable.
It's like a mutual fund that doesn't perform well. It doesn't make it a scam just because it didn't do the right thing. So very interesting, those are important distinctions. It's a hard topic to get into, but it's important. Good to see you guys.
Still to come this morning -- are you going to -- am I supposed to be giving this back to Carol?
COSTELLO: No. Take it away. Take it away.
VELSHI: All right. We're going to be watching what happened at the U.S. open with Serena Williams. She lost her cool before she suffered a huge upset at the U.S. Open. She called an official a "hater." that's not all. We'll tell you about that, too.
And we may have found the coolest elementary school in the country, a free iPad for every kindergartner, but the school says the giveaway is all in the name of education. We'll be right back.
(COMMERCIAL BREAK)
COSTELLO: It's 42 minutes past the hour. Welcome back to AMERICAN MORNING. It will be a rematch at the U.S. Open men's final today in New York, number one Djokovic versus number two, Rafael Nadal.
Yesterday on the women's side, though, Serena Williams lost. She not only lost, but she lost her cool, again on the court.
(BEGIN VIDEO CLIP)
SERENA WILLIAMS, PRO TENNIS PLAYER: If you ever see me walking down the hall, look the other way because you're out of control. You're out of control. You're a hater. And you're just - unattractive inside.
(END VIDEO CLIP)
COSTELLO: Ouch. Joining us now is Jon Wertheim, senior writer for "Sports Illustrated." Thank you for being here. Before we get into Serena Williams, I just want to point out the U.S. Open has been interesting so far.
Because on Saturday, Cyndi Lauper sang the national anthem and she got the words wrong. Listen.
(BEGIN VIDEO CLIP)
CYNDI LAUPER, SINGER: Or the ramparts we watched the flag was still streaming --
(END VIDEO CLIP)
COSTELLO: She said our flag was still streaming, which really aren't the lyrics. I think that the outfit was worse, though.
JON WERTHEIM, SENIOR WRITER, "SPORTS ILLUSTRATED": It's like the Super Bowl all over again.
COSTELLO: Much like Christina Aguilera. It's like -- don't people practice?
WERTHEIM: Every elementary school kid knows those lyrics. But you get in front of the big stage, who knows.
COSTELLO: That's true. It's nerve-racking. It must be because I shouldn't talk. I couldn't do it. So back to Serena Williams, so she yells at this umpire just like two years ago. She was still on probation from that incident. So what might happen?
WERTHEIM: We'll find out in the next few days. She's going to get a visit from the squad and we'll find out her punishment. It's mind-boggling. If you wake up this morning defending Serena Williams, you are a hard core Serena Williams fan. This was so out of line. She wsas already on double secret probation from two years ago so I don't -- unfortunately, obscures a great performance by Sam Stoser who beat her. But everybody is talking Serena and another outburst today.
COSTELLO: Oh, yes. Who was that she played against?
(LAUGHTER)
WERTHEIM: Exactly. Exactly.
COSTELLO: So why does she do this? Is it just because she loses her temper? That's a natural thing for her? She's not thinking or she's so upset because she did so poorly in the match.
WERTHEIM: She's going to be 30 years old, too. This isn't some junior player. Athletes do this all the time and they psych themselves up. This was a dispute over a hindrance call where she just thought she shouldn't have had a point removed. OK, that's fine. It's a judgment call, but to say those things to an official, she let down her guard and gave some insight into how she's wired. It was not pretty.
COSTELLO: So what does -- I mean, put it in perspective for us, because she did not play well. I mean, despite the temper tantrum, she didn't play well. But she had been, i know, and she was in better shape, and lost all this weight. What does this say about her play in general?
WERTHEIM: I just think, big picture, this is a real champion. This is one of the very, very rare champions of tennis. And for her to self-sabotage -- she does the easy thing, which is win matches. She's going for her 14th grand slam title. But she offsets it with this behavior which is absolutely indefensible. I think athletes do this. Again, athletes are in the heat of competition. It's an experience you and I will probably never know, but you've got to rein it in, especially two years after this ugly outburst on the very same court.
COSTELLO: Yes. Somebody said, on our staff -- and I won't mention her name -- that Serena Williams was being taken to task, in part, because she's female. And if a male player had done this, we wouldn't be talking about it in exactly the same way?
WERTHEIM: Boy, I mean, there's a sex component, there's a race component, but if you watch that video, I think it's pretty hard to defend. Again, this is two years after this ugly outburst where it's a similar set of circumstance. It was just unfortunate. She had devoted, dedicated this match to 9/11.
(LAUGHTER)
And yet, she sits there on the chair saying, like, come on, you've got to be serious. This is America. It was ugly, ugly stuff.
COSTELLO: So unattractive on the inside.
WERTHEIM: This was like a high school -- if I see you coming down the hall, you better look away.
COSTELLO: Yes.
WERTHEIM: 29 years old. I just don't get it.
(CROSSTALK)
COSTELLO: You're a hater. That was the other one.
(CROSSTALK)
COSTELLO: I know. And I -- it just reminded me, Cyndi Lauper got the "National Anthem" wrong.
(CROSSTALK)
WERTHEIM: An interesting tournament, an interesting tournament.
COSTELLO: Let's talk about the men's side. That match is going to be a match of ages, or at least it's shaping up to be.
WERTHEIM: This is one versus two. This is Nadal and Djokovic. Nadal, the defending champion, beat Djokovic last year. This year, Nadal, 0-5, hasn't figured this guy out. If Djokovic wins this, he'll have won three of the four majors, two defeats all year. This will be one of the great, great seasons in men's tennis history. On the other hand, eventually the streak against Nadal has to end. And Nadal, you have this feeling, is figuring things out. This will be interesting. And hopefully, this will be style over substance.
(LAUGHTER)
COSTELLO: I know Rafael Nadal is so charming. It's difficult not to like him. Although, Djokovic is charming as well. But Rafael Nadal seems to be healthy and seems to be on his game, so maybe so. This will be his year.
WERTHEIM: We'll see what happens. But I meant substance over style. We'll see what happens.
(LAUGHTER)
This is -- sport has sort of taught us -- this tournament has been all about unpredictability. But I think of people are looking for closing this crazy water-logged, "National Anthem"-forgetting, tantrum tournament with one good match that's about the tennis.
COSTELLO: Gosh, I hope so. I do so hope. But the other stuff is kind of fun. I admit it.
Thank you, Jon.
WERTHEIM: Good time. COSTELLO: We appreciate your coming in.
Christine?
ROMANS: All right, Carol.
Still to come this morning, a school in Maine is giving away iPads to all kindergartners in order to help students with their reading and math. But is this a smart education strategy or a giant waste of money? That story, coming up.
(COMMERCIAL BREAK)
ROMANS: So what should a school do when its students are struggling in reading and science? Offer tutoring? Maybe assign extra work? How about buy everyone iPads?
(LAUGHTER)
ROMANS: That's the solution at an elementary school in Auburn, Maine. That's what they came up with.
CNN's Elizabeth Cohen was there when the iPads arrived.
(LAUGHTER)
Good morning.
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Good morning. A very exciting moment. Christine and Carol, this is a school district where nearly one out of 10 kids don't graduate from high school. So like you said, they really put their heads together and thought, what could help us out? Here's what they came up with.
(BEGIN VIDEOTAPE)
(SINGING)
COHEN (voice-over): It's a big day in Mrs. McCarthy's kindergarten class at Fairview School.
KELLY MCCARTHY, KINDERGARTEN TEACHER: What time do you think it is?
UNIDENTIFIED GIRL: Lunchtime.
MCCARTHY: Not lunchtime. What do you think it is?
UNIDENTIFIED GIRL: Ipad time.
(SHOUTING)
MCCARTHY: Ipad time.
COHEN: Today, these kids are getting their own iPads.
MCCARTHY: Thumbs on top.
COHEN: The Auburn, Maine, school district spent more than $200,000 to outfit every one of its 250 kindergarteners with the tablets and a sturdy case to protect them. They believe they're the first public school district in the country to give every kindergartener an iPad.
Mrs. McCarthy says the iPads give her 19 students more immediate feedback and individual attention than she ever could.
MCCARTHY: As much as you would love to, as a person, be able to get to everybody right away and individualize what they are doing, sometimes you can't.
COHEN: 40 percent of the third graders here in Auburn are not reading at great level. The superintendent, Katie Gronden, says the goal is to fix that.
KATY GRONDEN, SUPERINTENDENT: We put a stake in the ground that our kindergarten classes, from here on out, by the time they reach third grade and leave third grade, that 90 percent of those students are meeting benchmarks.
UNIDENTIFIED GIRL: You have to shake it around like that.
(INAUDIBLE). Ew.
COHEN: There's no question these kids love their iPads. Maybe a little too much, some might say. A study done last year shows kids with too much computer time are more likely to have psychological problems. Some experts worry too much screen time takes them away from reality and away from face time with other kids and teachers.
The school district says they are making sure that doesn't happen.
MCCARTHY: We're going to really make sure they are outside playing, that they are interacting with each other, they are interacting with adults, besides using the tool that we're giving them.
UNIDENTIFIED GIRL: Doug (ph) has a hat.
COHEN: Soon, they'll find out if the iPads help or hurt when they test the kindergartener's reading and math skills in November.
(END VIDEOTAPE)
COHEN: Now, some parents just love these iPads. They think they're great. But others say, wow, $200,000? Maybe we could have spent that money on more teachers.
Carol, Christine?
ROMANS: I was wondering if Steve Jobs and the folks at Apple might have seen that story and decided they were going to kick it in, because they are churning out so many of these things every second.
One thing interesting thing about this, Elizabeth, is there are some kindergartens in the country that are very pointedly staying away from technology because they say kindergarten is about learning how to share, learning how to follow instructions from their teachers, for the important socializing, face-to-face, they have the whole rest of their academic career to use technology. They're trying to keep them away from it. So targeted technology, it's done differently in different school districts. That's interesting.
COHEN: Right. And that is one of the other theories out there that some schools have. But at this school, these kids are talking to each other. They are following their teacher's instruction.
One thing, as the mother of a kindergartener myself, that crossed my mind, if I gave my 5-year-old an iPad, I don't know that she would want to do anything else. That would be my concern.
(LAUGHTER)
COHEN: She would just want to be on that iPad all the time. She wants to be on my husband's iPad all the time already as it is.
COSTELLO: It's a built-in babysitter.
(LAUGHTER)
COSTELLO: It basically keeps the kid quiet for a long time.
COHEN: That is true. That is true.
ROMANS: The key is to make it a tool and not a distraction.
COHEN: Right.
ROMANS: And that's what teachers and schools have to do.
All right, Elizabeth Cohen. Thank you so much, Elizabeth.
COHEN: Thank you.
ROMANS: That's an interesting story.
COSTELLO: Yes.
ROMANS: Now to a man who loves his iPad, Ali Velshi.
(LAUGHTER)
VELSHI: Oh. Sorry about that.
(LAUGHTER)
VELSHI: My parents gave me that Blackberry when I was a baby.
(CROSSTALK) ROMANS: Speaking of kindergarteners and technology, Ali Velshi --
(LAUGHTER)
VELSHI: Good to see you, guys.
Hey, look, coming up next hour, I'm going to talk to two presidential candidates who will be on the stage tonight. Both are looking for a big boost. And both are saying that they can create jobs. Herman Cain and Jon Huntsman join me right here in Tampa on the other side.
Stay with us. You're watching AMERICAN MORNING.
(COMMERCIAL BREAK)
