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American Morning
Flirting with an Economic Downturn?; FBI Training Called "Anti- Islam"; NTC Fighters Enter Sirte; PR Expert Discusses President's New Message; Some Small Businesses Complain of Government Overregulation
Aired September 16, 2011 - 08:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: A huge setback for al Qaeda.
I'm Carol Costello.
The U.S. confirming one of the terror group's top operatives in Afghanistan has been killed. Who and why the terror group is now scrambling.
ALI VELSHI, CNN ANCHOR: And a fierce and final push in Libya.
I'm Ali Velshi.
Right now, anti-Gadhafi forces storming into the final stronghold of the ousted Libyan leader -- on this AMERICAN MORNING.
(MUSIC)
CHRISTINE ROMANS, CNN ANCHOR: Good morning. It is September 16th. It feels like October 16th in the Northeast. And in parts of the Midwest, too, it's a little chilly.
COSTELLO: I know. What happened to the dog days of summer? I guess we skipped over those, huh?
Good morning to you. We start in Libya. Libyan rebels are going in hard to Moammar Gadhafi's hometown of Sirte. Troops are pouring into the heart of the city, trying to seize control of one of the last Gadhafi's strongholds in the country.
In the meantime, Libya's National Transitional Council is sending a delegation to Niger demanding they turn over one of Gadhafi's sons who, of course, fled there.
VELSHI: Renewed fears this morning that America could flirt with another economic downturn. According to "The Wall Street Journal," one in three economists they surveyed predict that the country will slip into a recession over the next 12 months. That's according to "The Journal." It's all because of the market turmoil, the stuttering job market and, of course, this ongoing financial crisis in Europe.
ROMANS: And that's the most pessimistic these groups, it has been since the recovery began.
And a gloomy economic forecast from the head of the International Monetary Fund. Christine Lagarde says exactly three years after the collapse of Lehman Brothers, the economic skies look troubled and, quote, "We have entered a dangerous new phase of the crisis."
COSTELLO: But, despite all of this, the market overseas are up right now.
Our Nina dos Santos is live in London. So, give us some brighter news.
NINA DOS SANTOS, CNN CORRESPONDENT: Yes. It seems as though the market very much anticipating what might come out of this Euro zone meeting, the meeting between the finance ministers and also the finance ministers of the other countries that make up the 27-member European Union bloc.
Now, there is, obviously, the wish list of the things that the markets would like to hear them say and then, of course, that's real life. But what really has given the markets a bit of a shot in the arm this Friday session is yesterday's decision by the world's major central banks, including the Federal Reserve, the Bank of England, Bank of Japan, et cetera, to inject more liquidity and to make more money, U.S. dollar money available for the next three months to come for these troubled Eurozone banks that were having so much difficulty and trying to borrow money out on the open market, in U.S. dollars, because precisely of the kind of Euro zone crisis we're facing today.
So, broadly speaking, the market is looking pretty optimistic. Then, again, we are waiting to see what these ministers say.
Timothy Geithner making his second appearance in Europe in just the last couple weeks or so, and he is going to be arriving there. And that's really giving us an indication of just how serious the United States perceives the Euro zone crisis at the moment.
COSTELLO: Nina, thanks.
VELSHI: I'll tell you, it's very good point that, you know, the treasury secretary of the United States you would think has enough problems at home. So, the fact that he is now for the second time partaking in these exclusively European talks means we are worried about what happens there.
ROMANS: We definitely are.
All right. Education, a big part of the president's jobs plan. Today, he'll travel to a high school in Alexandria, Virginia. He'll be meeting with science and technology students. Then afterwards, he'll sign the American Invents Act into the law. That legislation is designed to encourage innovation by streamlining the patent process.
COSTELLO: House Speaker John Boehner rolling out the Republicans' alternative to President Obama's jobs plan. It's a proposal that calls for less government spending and regulation.
Here's more of what the speaker said to the Economic Club of Washington. (BEGIN VIDEO CLIP)
REP. JOHN BOEHNER (R-OH), SPEAKER OF THE HOUSE: We all know some regulations are needed. We've got a responsibility under the Constitution to regulate interstate commerce. There are reasonable regulations that protect our children and keep our environment clean. Well, then, there are excessive regulations that unnecessarily increase the cost for consumers and small businesses. And those excessive regulations are making it harder for our economy to create jobs.
(END VIDEO CLIP)
COSTELLO: Boehner also rejected the option of raising taxes to cut the deficit. He said the special committee charged with cutting more than $1 trillion from the federal deficit should use spending cuts and entitlement reform to get the job done.
VELSHI: Earlier on AMERICAN MORNING, I spoke to "New York Times" columnist Thomas Friedman. He says hyper-partisan politics is a roadblock to our economic recovery and he is suggesting a hybrid third party candidate might have some success.
(BEGIN VIDEO CLIP)
THOMAS FRIEDMAN, NEW YORK TIMES: The problem we have today is one party really wants to talk about investing. One party really wants to talk about -- and taxing -- and one party really wants to talk about not taxing, all right, and cutting. There's actually no party that has that hybrid politics in the middle.
That's what we need. Politics is about incentives. And right now, these two parties, their incentives are to really appeal to their base.
We're really big believers. Change the incentives, change the politics. Move the cheese, move the mouse. Don't move the cheese, the mouse doesn't move.
(END VIDEO CLIP)
VELSHI: Friedman says there's a huge unrepresented middle in the country that is ready for cutting taxes and investing at the same time.
ROMANS: All right. New developments in Pakistan this morning. An al Qaeda leader considered to be the terror networks chief of operations has been killed. U.S. officials confirming the death of Abu Hals al- Shari in Waziristan, Pakistan. It's not clear how he died, but it's considered a critical blow to al Qaeda's core leadership now.
According to one U.S. defense official, eight of the terror organization's top 20 leaders have been killed this year. Wow.
COSTELLO: He defied orders and charged five times in a Humvee into the kill zone in total darkness to rescue comrades under attack in Afghanistan. For that astounding act of heroism, 23-year-old Marine Sergeant Dakota Meyer received the Medal of Honor from President Obama.
(BEGIN VIDEO CLIPS)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Because of your honor, 36 men are alive today. Because of your courage, four fallen American heroes came home.
SGT. DAKOTA MEYER, MEDAL OF HONOR RECIPIENT: I didn't do anything that any other Marine wouldn't do -- I would hope any other Marine wouldn't do. I didn't -- I didn't -- I definitely don't see myself as a hero.
(END VIDEO CLIPS)
COSTELLO: They always say that, don't they? But they are.
Meyer is the third living recipient and the first Marine to be awarded the Medal of Honor for actions in Iraq or Afghanistan.
VELSHI: Brandon Wright is thrilled to be alive today. There he is. You'll see him here.
He's a young college student who was pulled from beneath the burning car in Utah earlier this week after his motorcycle collide would a BMW in a parking lot. Check that out. That's him being pulled away. Wright held a news conference yesterday from the hospital just to say thank you to the brave bystanders who lifted that car on to its side and pulled him out and saved him.
(BEGIN VIDEO CLIP)
BRANDON WRIGHT, RESCUED FROM BENEATH BURNING CAR: I just wanted to thank all the heroes that put their lives on the line to save mine. I'm forever in debt. I can't thank them enough. I just hope they know how much they mean to me.
I woke up to a man in a green shirt just kneeling over me and trying to get me to talk and keeping me awake, and I would really like to meet him, too, just because he did not let me close my eyes and go back to sleep. Really, without him, I don't know if I would have hung in there.
(END VIDEO CLIP)
VELSHI: Brandon says the sight of his mangled motorcycle made him cry. He suffered a fracture to his right left leg, burn to his leg, no damage to his head, even though he wasn't wearing a helmet and he says that he will wear a helmet from now on.
COSTELLO: I hope so.
VELSHI: Yes.
ROMANS: Still ahead, where does President Obama put his own odds of being re-elected in 2012? We'll let you know what he told reporters.
VELSHI: And you've been waiting for this. "Star Wars" fans, rejoice. NASA finds a new planet with two suns. Does that sound familiar to you? We've got the nerdy, but super cool details after this.
COSTELLO: We sure do. Plus, dramatic cool down as temperatures take a dive. Is the cold here to stay?
Rob Marciano is coming your way, next.
It's eight minutes after the hour.
(COMMERCIAL BREAK)
VELSHI: We have a nerd alert now.
ROMANS: A nerd alert.
VELSHI: Scientists may have found the Skywalker's home planet. Astronomers have confirmed the first direct evidence of a planet with two suns 200 light years away however. Just like Tatooine, the desert wasteland, the planet in the "Star Wars" movie, home to Luke Skywalker and his dad, Darth Vader, Anakin Skywalker.
ROMANS: Darth Vader was his dad. You just ruined it for me.
VELSHI: Spoiler alert.
ROMANS: I'm just kidding.
VELSHI: Also home to Jabba the Hutt.
That was good.
The real planet, by the way, is far too cold to sustain life, we're told. So, sorry fans, no chance of finding any Jawas or alien thugs or loan sharks or moody Sand people.
ROMANS: Rob Marciano is in the extreme weather center. I hope we didn't ruin it for you, Rob.
ROB MARCIANO, AMS METEOROLOGIST: No, you didn't at all. I recommend everybody today and for the weekend just to for today and this weekend in honor of this discovery, just the Schwartz, baby, don't forget.
Twenties and 30s are the temperatures right now across parts of the western Great Lakes. Check it out. We are seeing some of the coldest -- well, the coldest air of the season so far. We haven't been able to say that since, what, March, April, maybe May. Freeze warnings and freeze watches have been posted.
By the way, little snow from this system. North central Wisconsin, the earliest snowfall on record -- the old record was set back in 1916. So, this is a record setter, as it was in international falls, notably the ice box of the nation. But still, 19 in September, that's cold. Marquette seeing 31 yesterday. Minneapolis 36 and Milwaukee, Wisconsin, only getting down to 40 degrees.
Here comes a cold front all the way down to the Gulf of Mexico, all the way down to the East Coast, as well. So, infiltrating a good two- thirds of the country with very fall-like temperatures and maybe even some lake-effect showers with this thing.
Eighty-seven degrees is the expected high temperature in Dallas compared to what you have seen in the past three months, that's cool. Sixty-nine degrees -- 69 for the high temperature in Atlanta and 69 in New York.
Now, there'll be some spots tomorrow looking ahead and not everybody is going to see a perfect fall weekend, but the northeast will, mid- Atlantic will see some showers and some rain heading into areas that could use the rain -- like to get this a little further south into Texas.
This cold front that came through across the Northeast yesterday did have a little bit of severe weather with it. Cool pictures, though, out of Ocean City, Maryland. Check it out.
This was a waterspout -- tornado over water that was quiet and clean to begin with. But did come onshore briefly and did a little bit of damage, tossing some cars and trucks around, as well. But that's the only report of a tornado that we saw yesterday and cool video for you to enjoy on this Friday.
COSTELLO: Oh, yes, for us to enjoy. Hence the reason we go down to the ocean.
MARCIANO: Well, nobody got hurt, you know?
COSTELLO: That's true, very true. Just some property.
MARCIANO: You know where it's going to rain, maybe go out and see the "Star Wars Trilogy."
ROMANS: There you go.
VELSHI: Thanks, Rob.
ROMANS: You're a professional. He is a professional. Rob Marciano, thanks.
COSTELLO: Now is your turn to talk back on one of the stories of the day. The question for you this morning, what does Jennifer Hudson's weight loss controversy say about obesity in America? I know, Jennifer Hudson. But hear me out.
There is no doubt Jennifer Hudson is now skinny. Since she appeared on Oprah, reportedly she's now down to a size zero, saying and I quote, "I'm prouder of my weight loss than my Oscar" -- a far cry what she said back in 2007 when she was a lot curvier. Then she said, "I love my size. I think everybody should have meat on their bones. I've never bought into that skinny thing."
Her change of heart about her weight has some fans steamed. The Cafe Mom blog writes, "It's confusing to kids who struggle with celebrity worship and their own self-esteem, especially girls with body image issues and their own weight struggles."
Actually, you could argue pretty much all of America is confused about body image and weight. The "Biggest Loser," I mean, audiences love that TV show, "The Biggest Loser," yet, we criticize Hudson for losing weight. Heck, there are some who even criticize Michelle Obama for her anti-obesity campaign. Somehow, promoting healthy eating is equivalent to a nanny (ph) state, but the facts are the facts.
About one-third of adult Americans are obese, and heart disease is the number one killer in the United States. As for what Jennifer Hudson is saying now --
(BEGIN VIDEO CLIP)
JENNIFER HUDSON, MUSICIAN: It's about what you want for yourself, how you feel about yourself. It's about good health and, at least for me, it's about good health. But, overall what you want for yourself. So, if you want to be that big girl, be the fiercest big girl you can possibly be, and I would be the healthy fearless girl I can possibly be.
(END VIDEO CLIP)
COSTELLO: So, the "Talk Back" question today, what does Jennifer Hudson's weight loss controversy say about obesity in America? Facebook.com/americanmorning. Facebook.com/americanmorning. I'll read your comments later this hour.
CHRISTINE ROMANS, CNN ANCHOR: It's a great discussion. A really great discussion.
All right. Check the morning markets, next.
Plus, mortgage rates, listen to me very carefully if you have a 30- year fixed rate mortgage, more than 5.5 percent, it's another record low right now. A 60-year low for 30-year fixed rate mortgages. This affects every one who is sitting there with a loan with the bank. We're watching your money. It's 17 minutes after the hour.
(COMMERCIAL BREAK)
ROMANS: Welcome back. It's 20 minutes after the hour. Watching your money this morning.
In a new poll, economists say there is a one in three chance the U.S. economy will slip back into recession in the next year. The poll was conducted by the "Wall Street Journal." Like I said, it means there's a two in three chance that it won't.
Check in on the markets now. Right now, U.S. stock futures for the Dow, NASDAQ, and S&P 500 are all trading slightly lower ahead of the opening bell. Wall Street watching very closely what happens in Europe today. The treasury secretary is there right now working with European finance ministers on trying to stabilize the situation in the European debt.
On a lighter note, it might be great time to refinance your mortgage. The average rate for a 30-year fixed rate loan fell to 4.09 percent this week. That's the lowest in 60 years. That's according to Freddie Mac.
And more bad news for Netflix. The company says it expects about one million fewer subscribers in the third quarter. This after it jacked up the price of its DVD rentals and screening services. Company stock plummeted on the news yesterday.
Snooki and company getting a tax break from Jersey (ph). The state has awarded the production company working on "Jersey Shore" a $420,000 tax credit. The mayor of Seaside Heights says the series had provided a boost to the local economy, but many are upset. Taxpayers are now helping to pay the bill.
Still ahead, the first day at work is always a little nerve-racking. We just have newly-elected Republican congressman, Bob Turner, who made a little gaffe on the House floor. We've got the rookie mistake on tape. AMERICAN MORNING back right after this break.
(COMMERCIAL BREAK)
COSTELLO: Good morning, Washington, D.C. Mostly cloudy right now with 5 degrees outside. Only looking for a high of 68.
ALI VELSHI, CNN ANCHOR: Wow!
COSTELLO Summer's almost over.
VELSHI: Bob Turner had a slightly awkward moment during his first day on the job. He's New York's newest congressman, the Republican Party's newest hero. He was sworn in yesterday. This is, by the way, Anthony Weiner's old seat. Afterward, look what happened when Turner started speaking on the House floor before he was recognized by House Speaker John Boehner.
(BEGIN VIDEO CLIP)
REP. BOB TURNER, (R) NEW YORK: Thank you, Mr. Speaker. Thank you, Congressman Rangel.
JOHN BOEHNER, (R) HOUSE SPEAKER: The gentleman, the gentleman from New York, Mr. Turner, is recognized.
(LAUGHTER)
TURNER: Thank you, Mr. Speaker.
(LAUGHTER)
TURNER: Now? (LAUGHTER)
(END VIDEO CLIP)
ROMANS: New Yorkers don't ask for permission.
VELSHI: Right.
ROMANS: They just go right in and do it.
COSTELLO: Parliamentary procedure is hard, you know?
VELSHI: Come on. Cut him some slack. Turner will occupy Anthony Weiner's old Congressional seat.
ROMANS: "Don't Ask, Don't Tell," that will be history in a matter of days as the Pentagon says the ban on gays serving openly in the military will officially be repealed on Tuesday. This comes after months of reviews and court challenges. Two house republicans are making a final push for a delay, though, saying that they simply need more information on specific policy changes.
COSTELLO: The FBI under fire this morning trying to explain how anti- Islam views made it into one of their training programs for agents. Critics are calling it pure bigotry. One of the sentiments taught, the more devote a Muslim is, the more likely he is to be violent. More on this controversy from Brian Todd.
(BEGIN VIDEOTAPE)
BRIAN TODD, CNN CORRESPONDENT (voice-over): In the often tense relationship between the Muslim community in the U.S. and law enforcement, another potential problem. Fallout over an FBI training presentation, which claimed that main stream Muslims sympathize with militants.
"Wired" magazine says it obtained slide presentations from FBI whistleblowers. Slides that were shown at the bureau's training facility in Quantico, Virginia. In the series of slides entitled strategic teams and drivers in Islamic law, it says the prophet Mohammed ordered the assassinations and executions of his critics.
That Islam's world view is that there can be no peace between Islam and others until Dar al-Islam conquers and assimilates its adversaries. And it characterizes Mohammed as a cult leader for a small inner circle. James Zogby of the Arab American Institute calls the cult reference horrific. He says Mohammed didn't order his opponents to be killed. I read him another passage.
(on-camera) Then he says these strategic teams animating these Islamic values are not fringed, they are main stream. What do you make of it?
JAMES ZOGBY, ARAB AMERICAN INSTITUTE: Again, I say this is the propaganda of the Islamaphobes. This is what they've been preaching. This is why they've been stopping the building of mosques. They want to paint an entire community, an entire faith community as extremist and radical and violent and prone to violence. It's bigotry of the worst sort.
TODD: Contacted by CNN, the FBI wouldn't comment on that, would not allow us to speak to the analyst who wrote that presentation. An FBI spokesman acknowledged that that training session took place, but he says that was six months ago, one time only then it was quickly discontinued. That policy changes are under way and that that instructor no longer provides training for the FBI.
(voice-over) But the instructor is still an FBI analyst. Since September 11th, the FBI has often invited Muslim leaders to talk with agents.
UNIDENTIFIED MALE: True or false, all Arabs are Muslim and all Muslims are Arabs?
TODD: I asked former FBI assistant director, Tom Fuentes, if the counter terror agents he's dealt with would believe any of the points in that presentation?
TOM FUENTES, CNN NATIONAL SECURITY CONTRIBUTOR: No, they don't believe it, and they, furthermore, believe strenuously in a strong outreach program.
TODD: Fuentes says the publicizing of this training segment could play into al Qaeda's hands for propaganda. It says it could diminish the FBI's ability to get the American-Muslim community to help in investigations. But he says, hopefully, the fact that the FBI acted so quickly to terminate the program may give the bureau more credibility with Muslims.
Brian Todd, CNN, Washington.
(END VIDEOTAPE)
VELSHI: Well, our top stories now. An al Qaeda leader considered to be the terror network's chief of Operations in Pakistan has been killed. U.S. officials are confirming the death of Abu Abu Hafs al- Shahri in Waziristan, Pakistan. It's not clear how he died, but he is considered -- or his death is considered a critical blow to al Qaeda's core leadership.
COSTELLO: In Libya, a major advance on Moammar Gadhafi's hometown of Sirte forces loyal to the National Transitional Council pouring into the heart of that city now. Sirte is one of the last remaining pro- Gadhafi's strongholds. In the meantime, Libyan interim leaders are sending a delegation to Niger demanding they return one of Gadhafi's sons.
ROMANS: Striking teachers in Tacoma, Washington, could be in some legal trouble today as their walkout enters its fourth day. A judge ordered them to return to work, but 93 percent of the teachers voted to ignore the court order. The school district has argued in court this strike is illegal, because teachers are public employees and have no right to strike. Some 28,000 public school students in Tacoma are affected. VELSHI: President Obama is taking a glass half full approach to winning a second term. President telling campaign donors last night in Washington that his chances of getting re-elected in 2012 are better than they were in 2008. Tickets to the fundraiser were more than $35,000 a couple. So, probably made some sense to sound really confident.
COSTELLO: Yes. To make that $35,000 ticket worth it, right?
President Obama will be in Virginia later this morning trying to sell his new job's plan. He's been looking more and more like a candidate this week, out on the road trying to fire up the crowds, and everywhere he goes, his new catch phrase isn't far behind.
(BEGIN VIDEO CLIP)
BARACK OBAMA, (D) PRESIDENT OF THE UNITED STATES: Every one of you can make it happen by sending a message to Congress that says "pass this bill." That's why Congress needs to pass this bill. Let's tell congress, pass this bill right away. Let's pass this bill, right away.
(END VIDEO CLIP)
COSTELLO: Oh, we're hearing that a lot, aren't we? It's reminding some people of the old catch phrase, yes, we can. Is this the old Obama and is he finally connecting again? Joining us to talk about that and the Texas swagger of Rick Perry as well is Michael Maslansky. He's the CEO of a PR firm that specializes in language and messaging. Good morning.
MICHAEL MASLANSKY, AUTHOR, "THE LANGUAGE OF TRUST": Good morning, Carol.
COSTELLO: When you hear President Obama using that catch phrase, the crowd actually starts to chant along with him. Of course, most of the crowd are his supporters, right? You hear it there.
MASLANSKY: Right, we studied the language, the language of leadership a lot in our firm and he is, for the first time during his presidency recapturing that language. He's taken over the bully pulpit. He's found language that is connecting, even with his base. And he hasn't gotten his base that excited over the last couple of years. So this is really working for him. I think it is a big opportunity for him.
COSTELLO: I guess the most important thing is will this work in Washington? Will that make Republicans more likely to consider his jobs bill just because he seems to have the crowd on his side?
MASLANSKY: Well, I think he is taking control of the debate. And one of the things that he has failed to do in every policy debate, whether it's health care reform or Dodd-Frank, is really take control of the debate.
Look, we're talking about the jobs act. We're not talking about a stimulus. That's a win. They picked the right name for the bill, the American Jobs Act. This isn't the Reinvestment and Recovery Act, the way it was the last time.
And the conversations are about what Obama wants them to be about. Even when Boehner came out and started talking to the economic club yesterday, that's not going to get as much press. So, I think he's got the ability to put pressure on Republicans with what he's doing in a way that he hasn't had, really, for most of the last two years.
COSTELLO: As far as the voter is concerned, because he's so fired up now and, as you say, he's taking control of the debate. Does it matter if his entire jobs package is passed by Congress?
MASLANSKY: I don't think so. I think if he can get anything passed right now, it's a big victory for him and he'll be able to go out to the American public and say he pushed hard to get a jobs bill passed. He got a jobs bill passed. I think the reality is most Americans aren't going to read the fine print and they're not going to read what was in the original Bill and what wasn't. And right now he's trying to position himself. If anything gets passed he can take credit, and if nothing gets passed he's now made it clear that it is going to be because of Republican obstructionism.
COSTELLO: Well, let's talk a little bit about the Republicans. I want to take a look at some clips from the president and, actually, Texas Governor Perry, Rick Perry, because it's such a great contrast - there's such a great contrast between the two men. So we'll listen and then we'll talk about it after.
(BEGIN VIDEO CLIP)
OBAMA: This isn't about me. This isn't about giving me a win. This isn't about giving Democrats or Republicans a win. It's not about positioning for the election. It's about giving the American people a win. That's what it is about.
(APPLAUSE)
RICK PERRY, (R) PRESIDENTIAL CANDIDATE: The liberals are more interested in job creation to expand government. Jobs are about families. Jobs are about families realizing the American dream. Most Americans don't want to depend on government for their livelihood. They just want an opportunity.
(END VIDEO CLIP)
BALDWIN: Both men are compelling speakers and both men are likable in different ways. Can you point out those differences for us?
MASLANSKY: Well, I think, I think Rick Perry is actually a much more naturally likable person when he's out there interacting with people. I think Obama has been criticized a lot for being aloof. It's only when he finds these moments as a candidate that he can really rev up his audiences.
So Perry's got that kind of natural charisma, and it works for him. And Obama, you know, he works it on the campaign trail, but otherwise it's a little bit harder for him. And, so, we'll see how that plays out over the course of the campaign.
COSTELLO: I'm taking a leap here, let's say Rick Perry runs the Republican primary and he's up against President Obama. Does President Obama need to change his speaking style or his style to compete with the Rick Perry and vice versa?
MASLANSKY: Well, I think he, he's now finding his style as a candidate again. It hasn't been there for as long as he's been president, while Perry really has it naturally. I mean, the interesting thing right now is that Obama is really playing to the middle right now, much more than he's playing to his base, where Perry is really playing to his base right now much more than he's playing to the middle.
So, the content of what they're talking about is going to change or at least certainly for Perry if he wins the nomination, he's going to have to move a little bit more to the middle than he has been on most of his comments and the debates.
COSTELLO: Michael Maslansky, thanks for joining us this morning, we appreciate it.
MASLANSKY: Thank you, Carol.
CHRISTINE ROMANS, CNN ANCHOR: Great discussion. You know, yesterday some of the best opinion out there was the fire indict, fight from James Carville on CNN opinion. But it seems like everyone has an opinion on how to create jobs. House Speaker John Boehner unveiled his plan yesterday, and the big business lobby offered their two sense in the opinion pages today.
Here's today's morning opinion for you. In the "Wall Street Journal", the head of the chamber of commerce says that Obama's plan falls short, writing "Rather than tinker around the edges with temporary tax cuts and more government spending, the administration and Congress should embrace a bolder and more effective plan to open markets, attack new investments and infrastructure, develop American energy, and develop powerful growth incentives by reforming taxes, regulations, and entitlements."
Even Democrats are divided about the right way to create jobs in America. "The New York Times" editorial board chastising Democrats for challenging the president's proposal, this morning writing "For Mr. Obama to win public support for this effort, Americans need to see him attack the Republicans' opposition and to forcefully get his party in line."
And David Brooks of "The New York Times" points out no matter what legislation eventually passes, economic turnarounds take time. He notes after a crisis, countries typically have years of high unemployment, writing "This historical pattern has been universally acknowledged and universally ignored. Instead, leader in both parties have clung to the analogy that the economy is like a sick patient who can be healed by the right treatment."
Interesting. You can read more at my twitter feed @ChristineRomans. We'll put the one up by James Carville yesterday that got a lot of play. He says "What should the White House do? Panic." So we'll put that one up again, too.
ALI VELSHI, CNN ANCHOR: Coming up next, what is killing jobs here in the U.S.? One auto body shop owner says government regulations and all the red tape are to blame for choking his business with inspections, permits, fees. Is this the death of small family-owned business? A fascinating look inside one man's particular challenges. It's 37 minutes after the hour.
(COMMERCIAL BREAK)
VELSHI: Welcome back. Creating and keeping jobs in this country, these are going to be pivotal, pivotal issues for the 2012 presidential campaign. They're actually pivotal issues right now. Those who are running for office, they're still worried about it.
COSTELLO: Exactly. Now, Republicans have said one way to boost employment is to roll back what they see as job killing red tape.
ROMANS: But are these regulations really affecting how businesses hire? Here's Casey Wian.
(BEGIN VIDEOTAPE)
CASEY WIAN, CNN CORRESPONDENT: As City Body and Frame in Riverside, California opens for business, owner Don Feeley doesn't know about the surprise visitors who will arrive later in the day. For now, he's focused on moving a worker to help out here.
DONALD FEELEY JR. CITY BODY AND FRAME: In business today, collision repair or otherwise, there are always constantly running around because you're just lack of resources. In '07 we were on the peak and we ended up, we had 60 employees. Now we're down to 28 employees.
WIAN: The economy is the main reason. Feeley says constantly expanding federal, state, and local regulations also are choking his business.
FEELEY: You never want anyone to think that you're not trying to be compliant, you're not trying to meet the needs of clean air or clean water, because you are.
WIAN (on camera): Right.
FEELEY: But a lot of those, did you dot the i's and cross the t's stuff.
WIAN (voice-over): On top of the regulating any small business, collision repair shops because they deal with hazardous materials are expected and permitted by an alphabet soup of government bureaucracies.
FEELEY: We see a lot more of those people than we have.
WIAN: The irony is that Feeley's family owned company has been in business for 37 years. He says it's never been safer or cleaner than today.
FEELEY: We have the latest in paint equipment right here. We have the new spray booths which basically to install these, they're about $250,000.
WIAN: Those booths use water-based paint, not the more toxic petroleum-based variety to comply with California clean air standards. Hazardous substances are kept to a bare minimum. Feeley estimates he spends 35 percent of his time trying to satisfy regulators.
GARY TOEBREN, L.A. CHAMBER OF COMMERCE: When the regulations are more important than the creation of jobs, we find ourselves in an economic situation where there's not enough tax revenue coming in to pay the bills because there aren't enough people working.
WIAN: Feeley is still upset over a dispute that began last year with local air quality regulators that ended up in an $800 fine for record keeping violations. That agency says the regulations do more good than harm.
BARRY WALLERSTEIN, AIR QUALITY MANAGEMENT: The health impact associated with air pollution was estimated at over $20 billion a year. In terms of the potential costs of control to achieve federal clean air standards, that was estimated at about $4 billion a year.
WIAN: Back to the unexpected visitors. About three hours after we showed up, Riverside Fire Department inspectors arrived at his shop. The result, another stack of paperwork to fill out, a new hazardous material fee and the possibility that he may have to pay for electronic monitoring of his fire sprinkler system.
House Speaker John Boehner recently wrote a letter to President Obama complaining about nearly 200 newly proposed regulations on business. He said the House is considering legislation that would require Congressional approval of any new regulation that have a significant impact on jobs.
Casey Wian, CNN, Riverside, California.
(END VIDEOTAPE)
VELSHI: I think that's very worrisome that you would need Congressional approval of new regulations. I mean, there's a lot of concern about overregulation, but it's become so fashionable to hate regulation that we forgot on the cancers that people don't get, the injuries that people don't get on the jobs, the things little children don't swallow because of regulation.
ROMANS: You're saying some regulation is good.
VELSHI: Right. And I don't think it's Congress -- I don't think we need to clutter Congress up with approving of regulation. If we need greater efficiency, that's one thing. Making it Congress' problem seems to be -- Congress can't rubber stamp and check everything against everything. ROMANS: Well, smart -- I think there's no question that we need to have smart regulation and we have to have smart oversight and we have to have smart everything. And we -- the pendulum swings in this country. You over regulate and then you under regulate.
VELSHI: Right.
ROMANS: And you need, it needs to be smart and focused.
COSTELLO: But if Congress doesn't decide, who decides?
VELSHI: Right, I just I don't know that we can put that stuff on Congress. I mean, it -- we used to be that we had a regimen of -- regulators who looked at banks, who looked at safety who looked at things like that and they were good, strong regulators.
Now we're saying we don't actually trust the regulatory body and so Congress should decide. Well, no we have to go back to trusting them and staffing them properly with the right people.
ROMANS: Right, Congress gives them the funding and gives them the --
(CROSSTALK)
VELSHI: Right and they -- they do it. I mean, it's like saying Congress has to do the stuff the FDA does or you know. You can't be a little busy.
ROMANS: All right, "Morning Headlines" is next including Red Lobster and Olive Garden going on a diet.
VELSHI: I love that.
ROMANS: Yes, Ali there you go.
Forty-five minutes after the hour.
(COMMERCIAL BREAK)
VELSHI: It's 47 minutes after the hour. Here are your "Morning Headlines".
Forces to Libya's new leaders pouring into Moammar Gadhafi's hometown of Sirte; one of the last regimes -- one of the last strongholds of the regime, of the regime. A Libyan delegation from the National Transitional Council is in Nijir (ph) demanding the return of Gadhafi's son.
U.S. markets open in about 45 minutes. Right now stock futures for the DOW, NASDAQ and S&P 500 are all trading slightly lower ahead of the opening bell. Wall Street is watching what happens in Europe very closely today.
According to the "Wall Street Journal" one in three economists predict the U.S. will slip back into a recession in the next year. A teachers' strike in Tacoma, Washington now entering its fourth day; the teachers voted overwhelmingly yesterday to continue their walkout, defying a court order to return to the classrooms.
The NFL will now conduct pat downs from the ankles up for fans coming into stadiums across the country, this after someone got into a Jets game on 9/11 with a stun gun.
Pricing out smokers in New York City, officials say the number of smokers in the Big Apple has fallen to 14 percent. That's an all-time low thanks to tax increases that put a pack over $11 and new bans on smoking in places like city parks.
First Lady Michelle Obama trying to slim down America's kids one pound at a time. Celebrating what she calls a groundbreaking moment at a Maryland Olive Garden. The First Lady, visiting the home of the Never-Ending Breadsticks to phrase the restraint chains planned menu changes. Starting next year, Olive Garden and Red Lobster will be offering low-fat milk and fruits and vegetable on their kid's menu instead of fries. Because that's why people to Olive Garden and Red Lobster, right, for the fruits and vegetables?
That's the news you need to start your day. AMERICAN MORNING back after the break.
(COMMERCIAL BREAK)
COSTELLO: It's ten minutes to -- it's ten minutes the top of the hour. Welcome back to AMERICAN MORNING.
Oh you know what -- I forgot to turn back on my microphone.
(CROSSTALK)
ROMANS: Oh you know what --
VELSHI: Hey you just talk -- talk into my chest.
ROMANS: What is Ali -- what was Ali wearing today? Fashion week wrapped up in New York City. Front row seat wasn't good enough for us, thanks to our Alina Cho, we had a backstage pass.
VELSHI: Yes, Alina got access to a lot of A-list celebrities and the people whose clothes they wear. She's here with a sneak peek at her weekend special. This has been so much fun watching you put this together.
ALINA CHO, CNN CORRESPODENT: Thank you.
It's been a lot of fun for me, too.
VELSHI: Yes.
CHO: But it's been a lot of hard work. I think I'm going to fall asleep at about 2:00 this afternoon.
ROMANS: Yes.
CHO: Having said that, it's been great. Thanks, guys.
You know, this morning we're going to talk about fashion week. Of course, it ended last night. The glitz, the glamour and, of course, the more than 250 fashion shows highlighting the new designer collections for spring 2012.
Now, that's the catwalk. But what you'll see on my upcoming half hour special is an exclusive behind the scenes look at the fashion world.
My "BACKSTAGE PASSES" we're calling it, beginning with my exclusive interview with Marc Jacobs. And a big buzz is that he is about to replace John Galliano and become the next designer of Christian Dior.
(BEGIN VIDEO CLIP)
CHO (on camera): You have said that you would love to be a designer that the French embrace.
MARC JACOBS, DESIGNER: Yes. Yes, it would be an honor. I mean there is no question that the two great couture houses in Paris are Chanel and Dior. I think it would be very hard things to turn down.
(END VIDEO CLIP)
CHO: We also talked with Rachel Zoe stylist to the stars, reality TV star and now a designer herself. Now, Zoe recently scored a major coup when one A-list star was photographed wearing one of her dresses. Watch.
(BEGIN VIDEO CLIP)
CHO (on camera): You've been dressing celebrities for so long. When Jennifer Lopez --
RACHEL ZOE, CELEBRITY STAR STYLIST: Oh, my God. Like I still get chills -- I can't even -- because I know where you're going right now and I can't even talk about it.
(END VIDEO CLIP)
CHO: She was that excited. I also talked with fashion icon Carl Lagerfeld, Tommy Hilfiger, Bobby Brown, the makeup maven fashion side out. We saw Justin Bieber there with a new hair cut and Michael Kors and the Bergdorf Goodman window (ph) and Jason Bull (ph), where you'll even hear from Bono who plays backup to his fashion designer wife, Ali Hewson.
(BEGIN VIDEO CLIP)
BONO, SINGER: Well, you know, the only deal we have is I -- don't give any fashion tips. And Ali is very sure about that. You know, she's a tough customer. I mean I think fashion is tougher than music business.
(END VIDEO CLIP)
CHO: Hewson is the designer of Eden, a label she started six years ago.
All of this will be on my special "FASHION BACKSTAGE PASS", airs tomorrow on CNN 2:30 p.m. Eastern Time. And who is cooler than Bono? Maybe Mark Jacobs.
COSTELLO: I think he has good fashion sense. He wears the same outfit every time you see him, a black leather jacket and black pants.
CHO: And Armani sunglasses is what told me.
ROMANS: Well, it's true he had his favorite jeans, that he has favorite jeans --
VELSHI: Really?
ROMANS: He was here a couple of years ago.
VELSHI: Yes I remember that, I remember it well.
ROMANS: And you could tell if he had been -- he'd been off the road for too long, because he couldn't fit into his favorite jeans and he knew he had to sort of like sit down and get back on the road.
CHO: That's not good. On the road eating -- that we all know so well.
ROMANS: Yes, exactly. Exactly.
COSTELLO: Well, we can't wait to see your special.
CHO: Thank you.
VELSHI: Ok, 2:30 on Saturday.
CHO: Yes.
VELSHI: Good, very good. Thank you.
COSTELLO: Up next, our ""Talk Back"" question of the day. "What does Jennifer Hudson's weight loss controversy say about obesity in America?" It's just about six minutes to the top of the hour.
(BEGIN VIDEO CLIP)
GINA KEATLEY, COMMUNITY CRUSADER: I grew up in very low income areas. I see a lot of poverty, homelessness as a child as well. But it taught me to redefine myself and not to let your past determine your future.
When I moved to New York for school, I was living in East Harlem and there's very few places to buy fruits and vegetables and healthy foods. It's the most diabetic and obese of all the neighborhoods in Manhattan. People were super malnourished. I saw the connection between poverty and obesity and it just seemed unjust. And I had to do something about it.
My name is Gina Keatley and I am giving nourishment to people who are literally dying for it.
Come on over.
Change is possible. If you want somebody to try a tomato, you give them a tomato. They're an inspiration. They have to feel it, touch it, taste it; because people will not change unless something in them changes.
We go to places people will not go. We're giving out produce. We're doing classes. You really can eat healthy on a low budget.
What are these?
UNIDENTIFIED MALE: Grapes.
KEATLEY: Grapes. What is this?
UNIDENTIFIED MALE: Chicken.
KEATLEY: Chicken.
We really want them to start early on. So it could set a ripple effect for the rest of their life.
Say tortilla.
UNIDENTIFIED MALE: Tortilla.
KEATLEY: Ok. Good.
At the end of the day, the parents are the ones doing the shopping. We have to win them over, as well.
Thank you, guys. Thanks for coming.
When I see an in need child, it reminds me of things I didn't have and I want them to see.
It's about holding yourself up and never accepting it and I can see in people's faces. I think people are getting it.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
COSTELLO: We asked you to "Talk Back" today. This was the question. What does Jennifer Hudson's weight loss controversy say about obesity in America?
This from Rissa, "People are always going to hate on success. Jennifer Hudson decided to become healthy and there's nothing wrong with that. More people should follow her and become healthy and fit and maybe that will help with the obesity problem in this country. It's horrible the way people would hate on that."
And this from Grace, "Has anybody seen her Weight Watchers commercials? She's still a very curvy girl. Yes, you should love your body, but also work for the body you want. I've lost weight myself, but you know what actually really matters to me? My cholesterol numbers; whether you're short or tall or curvy or thin, you need to find your healthiest structure."
Thanks for your comments this morning. Facebook.com/Americanmorning, if you'd like to continue the conversation.
VELSHI: I like this whole work for the body you want thing.
(CROSSTALK)
COSTELLO: You're getting better thought. You're eating better, right?
VELSHI: I'm certainly talking about it. I'm talking about it.
ROMANS: He just said at the break, I can't wait to get two hot dogs.
VELSHI: I did say that.
ROMANS: I swear. Kyra Phillips --
(CROSSTALK)
KYRA PHILLIPS, CNN ANCHOR, "CNN NEWSROOM": Ali Velshi is one of the worst eaters, we all know. Ali is the one having hamburgers at 5:00 a.m. Hello.
VELSHI: Yes, that's happened in the past, thank you, Kyra. Enjoy your show.
PHILLIPS: Happy weekend.
