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American Morning
An Act of War?; Herman Cain's Race Card?; Pepsico. Earnings Miss Estimates, Revenues Up; 10,000 Jobs Expected To Be Cut On Wall Street; Study: Groceries 50 Percent More Expensive At Drugstores; Herman Cain Targeted in GOP Debate; Program Uses Dogs to Reduce Bullying in Schools; Fashion has to be Right for the Moment
Aired October 12, 2011 - 07:59 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: The United States calling on the world to get tough with Iran after foiling a plot to kill a Saudi ambassador on American soil. I'm Carol Costello. Should the U.S. military respond?
CHRISTINE ROMANS, CNN ANCHOR: I'm Christine Romans.
He's been surging in the polls. Now, Herman Cain is feeling the heat from his GOP rivals and for his controversial remarks on racism in America -- on this AMERICAN MORNING.
(MUSIC PLAYING)
COSTELLO: And good morning to you. It is Wednesday, October 12th.
Ali Velshi, he -- he had to leave this hour for a very important meeting, though.
ROMANS: Yes, he's going to go listen to the CEO of Citibank over at "Fortune" magazine and hope to get a sense of what the state is of the American banking system and those fees, what are they saying about those fees?
But, first, a terror plot that some U.S. leaders are calling an act of war. This is Saudi Arabia's ambassador to the United States. The Justice Department says Iran conspired with Mexican drug traffickers to assassinate him here on American soil with a bomb in a restaurant.
And this is a suspect who has been taken into custody. He's a 56- year-old Iranian named Manssor Arbabsiar. He's a naturalized U.S. citizen. His friends called him Jack and they said he didn't seem to have particularly strong views on religion or politics. He's in custody today.
COSTELLO: Republican Congressman Peter King of New York, the chairman of the House Homeland Security Committee, calling this foiled terror plot an act of war and he insists America should not rule out a military response.
(BEGIN VIDEO CLIP)
REP. PETER KING (R-NY), HOMELAND SECURITY COMMITTEE CHAIR: I think we should certainly consider some, at least signs of military activity by us, you know, as movements of troops or carriers, whatever -- something to indicate how seriously we're taking this. Everything should be kept on the table when you're talking about a potential attack against the United States, an act of war.
(END VIDEO CLIP)
COSTELLO: Let's bring in our Pentagon reporter, Barbara Starr.
So, Barbara, a military option doesn't really seem possible at this time. In fact, the Obama administration was quick to like throw that off the table. But what are the United States options when it comes to possibly punishing Iran?
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, you know, yesterday, we saw the Treasury Department very quickly levee new sanctions against five people that it said were involved in this plot, including four senior members of Iran's revolutionary guard corps, al Quds force -- this force that we have been talking about for the last day or so that is said to be behind this plot.
Whether it goes beyond these people, whether it goes all the way up to the Iranian president and the supreme leader is one of the key questions right now for the administration as they try to form a response. How far up does this go? Is it possible that these operatives were acting on their own?
Nobody seems to have a good feel for that, though the FBI yesterday, the Justice Department, were very clear that they believe the al Quds is behind it, doesn't go further. So, you have the treasury sanctions against them. You have discussion of taking all of this to the Security Council at the United Nations for some kind of international reprimand, perhaps.
But as you say, military action at the moment does not seem to be front and center. This is a very tough neighborhood out in the Persian Gulf. A lot of nervous Arab neighbors, not interested in seeing another war break out there and a lot of concern about just keeping a calm atmosphere there, of course, because of the very sensitive oil shipping lanes during that very region -- Christine, Carol.
ROMANS: And what we also don't know is that where this plot emanated from. What part of the Iranian government, if any part -- because they're competing factions, of course, and how high up it may have gone? We don't know very much about this guy in custody and the other one that they're looking for, how closely tied they were to the Quds force and how close the ties the Quds force is all the way back to Ahmadinejad's office.
STARR: Well, that's right. You know, people keep using the phrase brazen attack. How brazen is this?
Is this something that Mahmoud Ahmadinejad, the president of Iran, ordered up himself? Is he really engaging in a new round of potential very serious violence things that are interpreted by the international community as an act of war? Is he going to press the West into some sort of action against him? What is he really up to? And how could he not have known about this?
Let me just briefly mention, of course, we've been down this road before. Iran shipped weapons into Iraq, into Afghanistan -- weapons that clearly killed U.S. and coalition forces. What the Pentagon, what the administration continued to say about those Iranian weapons is they came from the al Quds force, but they never said that they could link them higher up. Sounds familiar, doesn't it?
This key question: Can you link it all the way to the Iranian leadership?
COSTELLO: We'll see. Barbara Starr, live at the Pentagon -- thank you.
ROMANS: All right. Now to politics this morning. Herman Cain -- he kind of likes his new position as the GOP number two candidate, at least for now, even if it comes with the big bull's eye. Cain's 999 tax plan came under attack in last night's New Hampshire debate.
(BEGIN VIDEO CLIPS)
REP. MICHELE BACHMANN (R), PRESIDENTIAL CANDIDATE: One thing I would say is when you take the 999 plan and you turn it upside down, I think the devil's in the details.
RICK SANTORUM (R), PRESIDENTIAL CANDIDATE: How many people here are for a sales tax in New Hampshire? Raise your hand. There you go, Herman. That's how many votes you'll get in New Hampshire.
JON HUNTSMAN (R), PRESIDENTIAL CANDIDATE: I first thought it was the price of a pizza when I first heard of it.
(LAUGHTER)
(END VIDEO CLIPS)
ROMANS: CNN's Tom Foreman live in Washington. He's fact checking the Republican debate.
So, Tom, Herman Cain's 999 jobs plan was at the heart of this debate and, of course, critics and many economists say it would hurt the poor more than anybody else. It's simple, but probably wouldn't work. What are you finding?
TOM FOREMAN, CNN CORRESPONDENT: Yes, you hit the nail on the head here. Simple -- I don't know if you could say it probably wouldn't work, what you can say, it appears simple, but in reality, it may be remarkably complex. That's why we're throwing it on the much dreaded wheel of truth here, to find out what really happened here.
Let's listen to what Herman Cain said about this plan.
(BEGIN VIDEO CLIP)
HERMAN CAIN (R), PRESIDENTIAL CANDIDATE: It will replace the corporate income tax, the personal income tax, the capital gains tax, the death tax, and most importantly, the payroll tax.
(END VIDEO CLIP)
FOREMAN: Big claim here. It's going to replace, basically, all the revenue that the government needs. That's what he's saying.
The question is, is that true?
Here's the simple fact of it. Economic analysts are skeptical about that -- and I underline the word skeptical because the problem with this plan is that it is so comprehensive in terms of what it would do to the tax code and revenue in this country that right now, as best we can tell, nobody can really get a thumb on exactly what it would mean. It's almost like saying if we changed all the rules in baseball, would we have more or fewer home runs?
That's what's happening here. It's such a dramatic change, we don't really know.
So, the bottom line is what we have to do is say this is true, but incomplete, and the real emphasis here is on "incomplete." It is just not clear, at this point, from all the analysis, whether this would replace all the revenue or come up short or somehow produce more -- Carol.
COSTELLO: Yes, because, Tom, I always heard if wouldn't raise enough money. You know, we have a certain amount of money that the United States takes in to pay its bills now. If you changed over to the 999 plan, that would bring in markedly less money.
FOREMAN: Some people think that. But part of the problem is that the 999 plan could also -- because it has, for example, 9 percent sales tax across the country -- it could also dramatically change spending habits. And if that happens, how much? And who changes and how much is spent? So, that's the problem.
ROMANS: This is why tax reform makes people crazy -- because when you pull over here and then something changes over here and we have one of the most complicated, probably the most complicated tax systems in the world.
COSTELLO: 999 -- OK, what about Mitt Romney's plan?
FOREMAN: Mitt Romney, you know, he really has really been out there hitting the ball and one of the things he talked about was the idea of what Americans want when we talk about controlling our budget, controlling our spending and how much revenue we need. Listen.
(BEGIN VIDEO CLIP)
MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: American people want to see growth and jobs and they believe the right way to do is by cutting back on the scale of government. And they're right.
(END VIDEO CLIP) FOREMAN: Oh, there's something that Republicans love to hear. Americans want less government spending. You know what, he's right about that. When you ask about the supercommittee right now about to sort all of this -- 57 percent of the people in one of the recent polls here said we need major cuts to domestic spending. He's absolutely right.
Here's what he didn't say, however. At the same time, 63 percent said we also need higher taxes on wealthier Americans and businesses. You can't say one without mentioning the other, not if you're going to be really fair. That is absolutely true, but incomplete, Carol.
COSTELLO: Well, the other thing Mitt Romney said is that he wants to increase money for defense. Many economists say we have to decrease the money we give to defense. That's the only way we can balance our budget and make government smaller.
FOREMAN: It's just what you talked about a minute ago. The problem with this, is the Rubik's cube. Every time you move the revenue side or the spending side, something else moves, and you have to say -- do I really want this if it's going to cost me that?
ROMANS: Rubik's cube, the baseball analogy, you're so great.
Tom, what about Rick Perry touting this unmatched jobs record?
FOREMAN: Oh, you know, Rick Perry has done this before and he hit the ball again on Texas. Listen.
(BEGIN VIDEO CLIP)
GOV. RICK PERRY (R-TX), PRESIDENTIAL CANDIDATE: While this country was losing 2.5 million jobs, Texas was creating 1 million jobs.
(END VIDEO CLIP)
FOREMAN: Texas was creating 1 million jobs. Rick Perry loves to say this. Governors, in general, love to say this. They love to say, the rest of the country was in trouble, but look how well I was doing. Texas created jobs.
Here's the problem in all that. Texas current unemployment rate is still 8.5 percent. That's below the national average.
If you listened to the numbers he cited there -- yes, under the Obama administration, the country lost 2.5 million jobs. That has been a bad thing. But he said Texas created a million jobs. Texas only created 166,000 jobs during that same period of time under the Obama administration.
You have to go all the way back for the past decade under his entire governorship to get a million jobs. And, even then, why is the unemployment rate so high if they're creating so many jobs? Because their population is also growing.
So, if you are creating jobs at a rate that doesn't keep up with your population growth, or just barely outruns it, you're not creating much. On top of which, Texas has -- is one of the states that has one of highest percentages in the entire country of jobs that are very low-paying at/or below the minimum wage.
So, this is, at very least, misleading because the implication is the Obama administration for the whole country lost 2.5 million in the same period of time I created almost half that million in my state alone and they're good jobs. That's simply not really the case, Carol.
COSTELLO: Fascinating stuff. Tom Foreman, thank you so much.
ROMANS: CNN is going to host the next Western Republican Presidential Debate in Las Vegas. We're going to have the debate live next Tuesday, October 18th at 8:00 p.m. Eastern Time, right here on CNN. Anderson Cooper will moderate that. And Carol is going to be there live Wednesday for all the morning after analysis.
COSTELLO: I'm going to go behind the scenes. I can't wait.
Herman Cain is calling out his critics in the black community. On a conservative radio show, Cain said liberal African-Americans just can't stand his conservative credentials.
(BEGIN AUDIO CLIP)
CAIN: How dare Herman Cain, first, run as a Republican? How dare Herman Cain be conservative? And how dare he move up in the polls, so that he just might challenge our beloved Obama? That's the problem that they have.
(END AUDIO CLIP)
COSTELLO: OK. So, those comments follow Cain's assertion that racism doesn't hold anyone back any more and that, of course, that comment has created even more controversy. Our next guests have written about this issue.
Ron Christie is a Republican strategist and resident fellow at the institute of politics at Harvard University. He is also the author of two books on race and politics. And Boyce Watkins is a professor at Syracuse University and founder of yourblackworld.com.
Welcome to you both.
BOYCE WATKINS, SYRACUSE UNIVERSITY: Good morning.
RON CHRISTIE, REPUBLICAN STRATEGIST: Thank you for having me.
COSTELLO: So, Boyce, let's start with you. You called Cain the perfect racist, a political puppet that allows white America to say the things they are afraid to say out loud.
But just because Herman Cain has a different opinion on the state of African-Americans in America -- I mean, that doesn't make Herman Cain a racist, does it? WATKINS: No, well, a lot of us live under the premise that racism doesn't come with a black face. But, actually, the most effective form of racism does have a black face. You can go all the way back to slavery.
Herman Cain learned a long time ago that you can gain a lot of political points by attacking and disrespecting black people. And it will lead you to gain favor among whites. I mean, if you notice, he's the only presidential candidate who speaks this much about race. You don't see Mitt Romney running around the country disrespecting Mormons and saying that they're brain washed. You don't see Rick Perry attacking Texans.
But Herman Cain actually moves up in the polls because he's attacking African-Americans because the color of his skin grants a degree of legitimacy, which I would consider to be illegitimacy to some opinions that are quite flawed. And for a man that admittedly sat out of the civil rights movement, it's problematic when he comes forth with such strong views that are ultimately incorrect.
COSTELLO: OK. Ron, do you agree? Is Herman Cain just saying these things for political gain?
CHRISTIE: No, of course, I don't agree with that. You know, I think there's a real struggle with a lot of folks in the black community today that say somehow if you act a certain way, if you talk a certain way, that somehow you're acting white or you're insufficiently black. I mean, you hear our previous guest comment Herman Cain sat out the civil rights marches.
Well, you know what? So what? Not all white folks marched in the civil rights movement. Not all black folks march in the civil rights movement.
Daring to have a different ideology and different opinion is fine in America and, frankly, that's what's the best about being in the era of Obama, that you can put forth your ideas, you can lay out principles, you can articulate a vision for this country regardless of the color of your skin, and people will follow you and people will rally to that rather than saying that you are a member of a particular ethnicity.
COSTELLO: And, Boyce, doesn't he have a point? Because, you know, some people think that all African-Americans think the same way. In the same way that they think all women think the same way. African- Americans have different opinions about a lot of things, including race.
WATKINS: That's absolutely true. And I have members of my own family who really want to like Herman Cain because one of the things that a lot of people don't talk about is that there's a lot of conservatism in the black community. And so, I think that the views of Herman Cain as a conservative and as a Republican are acceptable amongst a lot of people.
The problem is that he's coming forth in a way that is making himself into this political novelty that says, "Hey, I'm a black guy, and look at these horrible things I'm saying about black people. That's why you should like me." I, instead, encourage Mr. Cain to have a candidacy that carries a degree of dignity like say, a Colin Powell would have, another conservative who also happens to be black who gets a lot of respect from the black community, but you would never see Colin Powell running around the country saying black people are bringing Washington.
Racism doesn't matter, and all this other ridiculous things that Herman Cain is saying. So, diversity of opinion is incredibly important, but Herman Cain is going about it the wrong way.
COSTELLO: OK. Ron, you mentioned this before about what Herman Cain said about President Barack Obama. He said that in a radio interview before last night's debate. So, let's listen.
(BEGIN VIDEO CLIP)
HERMAN CAIN, (R) PRESIDENTIAL CANDIDATE: He's never been a part of the Black experience in America. I can talk about that. I can talk about what it really meant to be poor before I was poor.
(END VIDEO CLIP)
COSTELLO: OK. So, he went there. I mean, why disparage President Obama, Ron?
RON CHRISTIE, REPUBLICAN STRATEGIST: Well, see, I wouldn't do that. I mean, I don't know what the quote "black experience" is in America. The only experience I know is I was raised in California. I'm here in Cambridge, Massachusetts now at the institute of politics at Harvard. But to suggest somehow that there is a Black experience that, if you're Black, that you're supposed to punch certain tickets.
I disagree with Mr. Cain for saying what he said about the president just as much as I agree or disagree with the gentleman who just said that Mr. Cain is attacking African-Americans. I have a very fundamental disapproval with the fact that people somehow say, there's nothing wrong that 90 percent of Blacks in this country vote for one political party.
I wouldn't call it brainwashing, but I would look at it and say very strongly, why would 90 percent of one ethnic group vote for one party. If you had 90 percent of Whites all voting for Republicans, people would say, oh, Republicans are racist. So, I think we need to move away from this Black experience and White experience and talk about the things that unite us. And that is our citizenship in this amazing country being United States of America.
COSTELLO: OK, Boyce, you get the last word. We don't have much time. So, what are we learning from this sort of debate that's going on in the country right now?
WATKINS: Well, I think that we're learning exactly what the other guest is referring to, which is that, you know, our motto, your Black world is that there's no one way to be Black, and the ideas that we have African-Americans from all different backgrounds, and to say that all Black people think alike is similar to say that all White people think alike, which we know us fundamentally untrue.
I think that Herman Cain has a right to run for president. He has a right to be a conservative. His view points are welcome to a point, but don't feel that attacking Obama as a Black man or attacking the bulk of the African-American community is going to get you into the White House, because it doesn't make you commander in chief material. It actually makes you a little bit of a gimmick, and I don't think Herman Cain wants to be that.
COSTELLO: Thank you, both, for being with us this morning, Ron Christie and Boyce Watkins. We appreciate it.
CHRISTIE: Pleasure to join you.
WATKINS: Thank you.
ROMANS: Fascinating discussion.
Still ahead, our schools are going to the dogs, literally, but this is a good thing. Dogs now helping out in the classroom teaching empathy and compassion. It's part of the effort to stop bullying, but does it work? We're going to check one program started by Yale University with the blessing of the dog whisperer himself, and we have one of the dogs here on set with us.
(COMMERCIAL BREAK)
COSTELLO: Oh, what a perfect picture because you know what, Christine --
ROMANS: Let me guess.
(LAUGHTER)
COSTELLO: Detroit --
ROMANS: Won.
COSTELLO: Right.
(LAUGHTER)
COSTELLO: Detroit's bats came alive last night, and they're still in the game, and we like that. It's beautiful in Detroit this morning. Partly cloudy and 60 degrees. Some showers later, but hopefully, the rain won't interfere with the game.
ROMANS: You know what, Rob, Carol got her birthday wish. That was for her team to win. How are you?
ROB MARCIANO, AMS METEOROLOGIST: Nice work. You know, my mom's birthday was last week and all she wanted was the Yankees to win on her birthday. It didn't quite happen. So, I know we've been better. I tell you what I called my Vegas bookie last night, and I asked him, what are the chances of the Tigers going on to win the world series, and he said about the same as getting hit by a satellite falling to earth.
COSTELLO: Oh, he's crazy.
ROMANS: Be careful, Carol. Be very careful.
COSTELLO: He's crazy. How can he -- what?
MARCIANO: Which is 2001. We got another satellite, guys --
COSTELLO: We have the best picture in all of baseball, actually. And two of the best hitters in the American league.
MARCIANO: Right. If that pitcher could pitch every day, then you might have a chance.
COSTELLO: We got two great pitchers. You're forgetting --
(LAUGHTER)
MARCIANO: You're really cutting into my time.
COSTELLO: OK. Sorry.
MARCIANO: I've got something really interesting to show you. Guys, we have another satellite that's going to fall to earth. This one is a German one. Here's a picture of it. We call it Rosat for short. It's about half the size of the last one that fell to earth. This one was actually a telescope that was launched in the early 1990s and decommissioned back in 1999, and it's documented about 150,000 items there in the sky.
But, even though it's smaller, it's got a lot more heat resistant material. So, about 30 pieces may survive reentry with the heaviest one can be 1,700 pounds. So, and again, we don't really know where it's going to fall, but we're thinking the end of next week and potentially next weekend.
All right. Let's talk about a satellite, this one about 22,000 miles up. Geostationary looking at Hurricane Jova. Winds now at 75 miles an hour. This came onshore as a Category 2 storm. We haven't got a tremendous amount of reports of damage from Manzanillo (ph) up through Puerto Vallarta, but certainly, folks were evacuated there and just likely some amount of damage. We'll report that to you as we get it.
Meanwhile, light to moderate rainfall from the lower Great Lakes, the Ohio River Valley, and up across the I-95 corridor. Here you go. The Tri-State area of New York light tonight and tomorrow and could see a couple of three inches of rainfall with this. Obviously, ground is already saturated. So, don't need any more and then another storm on the heels of that one.
This one could bring severe weather later on today across parts of the plains. We'll keep an eye in this satellite, guys. We've got a week or so to watch it. We'll see if we have that much time to follow the Braves.
(LAUGHTER)
COSTELLO: Thank you. He's a good sport --
(CROSSTALK)
COSTELLO: He's a good sport. He really is -- not.
(LAUGHTER)
COSTELLO: Now is your chance to "Talk Back" on one of the big stories of the day. The question for you this morning, does Mitt Romney's changing position on healthcare matter to you? The biggest thorn in Mitt Romney's side is Romneycare. That's what his opponents call the healthcare plan that Romney created in Massachusetts when he was governor.
It turns out the Obama administration was entranced with Romney's plan, and according to NBC News, Obama officials met with Romney's advisors to create Obamacare. And yes, both plans include a requirement to buy insurance. Romney says, yes, so.
(BEGIN VIDEO CLIP)
MITT ROMNEY, (R)PRESIDENTIAL CANDIDATE: The truth is, our plan is different, and the people of Massachusetts, they don't like it, then get rid of it. Right now, they favor it 3-1. But I'm not running for governor of Massachusetts. I'm running for president of the United States.
And as president, I will repeal Obamacare. I'll grant a waiver on day one to get that started, then I'll make sure that we return to the states what we had when I was governor, the right to care for our poor and the way we fought best for our respective states.
(END VIDEO CLIP)
COSTELLO: Still, it makes you wonder, here's Gov. Romney on Fox News the day he signed that Massachusetts law.
(BEGIN VIDEO CLIP)
ROMNEY: When I set out to find a way to get everybody health insurance, I could not care less and I don't care less about how it works politically. In my view, it's the right thing to do.
(END VIDEO CLIP)
COSTELLO: So, Mitt Romney was for the individual mandate before he was against it, at least, on a national level. And he says, as president, you heard him, he will repeal the very health care law that he inspired.
So, the "Talk Back" question for you today. Does Romney's changing position on healthcare matter to you? Facebook.com/americanmorning. Facebook.com/americanmorning. I'll read your responses later this hour. ROMANS: All right. A check of the early market action next.
Plus, Wall Street may lose 10,000 jobs. Which parts of the financial and banking sector will get hit the hardest? I'm going to tell you. It's 25 minutes after the hour.
(COMMERCIAL BREAK)
ROMANS: Twenty-seven minutes after the hour. "Minding Your Business" this morning.
Right now, U.S. stock futures are trading sharply higher ahead of the opening bell. European markets are up, too, after some stronger than expected manufacturing data surprised investors in Europe.
Pepsi just reported it missed third quarter earnings expectations, but revenues were up for the quarter. A lot of weight on this report as Pepsi just doesn't make Pepsi. It also is the parent company of Frito-Lay, Tropicana, Gatorade and Quaker Oats. It can tell (ph) a lot about this, the health of the consumer.
We've been hearing reports and rumors for week and now someone is saying it. The New York State Comptrollers Office predicts that Wall Street will cut 10,000 jobs by the end of next year. The office says profits will fall for the security industry, and Wall Street employees will see smaller bonuses, too. When you see Wall Street lose jobs its bankers all the way down to secretaries.
Buying your milk and cereal at the drugstore may save you time, but it won't save you cash. A new study by Consumer World shows that the average drugstore charges a full 50 percent more than the least expensive supermarket for groceries.
Up next, hip-hop's business boom. It's grown into a multibillion dollar industry, but is its economic success leading to the art form's downfall? AMERICAN MORNING back right after the break.
(COMMERCIAL BREAK)
COSTELLO: It is 30 minutes past the hour. Welcome back to AMERICAN MORNING.
The United States says it foiled a terror plot engineered by Iran, this man now in custody. He's a 56-year-old U.S. citizen who also holds an Iranian passport. The Justice Department accused of conspiring with Mexican drug traffickers to assassinate a Saudi Arabian ambassador on American soil. Iran's president calling the charges a fabrication.
ROMANS: President Obama says he now plans to break up his jobs plan into a series of smaller bills that will be introduced individually. Yesterday the $447 billion package failed to pass the Senate.
COSTELLO: Businessman Herman Cain said he's seen his political fortunes rise. He's now number two in the presidential race. So during last night's debate Cain was taking fire from behind with GOP rivals ridiculing his nine-nine-nine tax proposal.
(BEGIN VIDEO CLIP)
JON HUNTSMAN, (R) PRESIDENTIAL CANDIDATE: I think it's a catchy phrase. In fact, I thought it was the price of a pizza when I first heard it.
HERMAN CAIN, (R) PRESIDENTIAL CANDIDATE: Nine-nine-nine will pass, and it is not the price of a pizza because it has been well-studied and well-developed.
MICHELE BACHMANN, (R) PRESIDENTIAL CANDIDATE: One thing I would say is when you take the nine-nine-nine plan and you turn it upside down, I think the devil's in the details.
(END VIDEO CLIP)
COSTELLO: Cain says it's a bold solution, not a politician's solution.
ROMANS: When hip-hop started in the late '70s, it was a cultural movement. Young adults in New York City exposing the problems in their neighborhood like drug abuse, racism, gang violence. At the time corporate America ignored it, but not anymore. Here's Soledad O'Brien with this morning's "Black in America" report.
(BEGIN VIDEO CLIP)
SOLEDAD O'BRIEN, CNN CORRESPONDENT: Hip-hop has changed the nation, and in his new back "Tanning of America" Steve Stout said he knows how it happened.
What does the "tanning of America" mean?
STEVE STOUT, TRANSLATION ADVERTISING, AUTHOR: We're the next generation of kids, millennials specifically see the world no longer through color or ethnicity. They see the world through shared values.
O'BRIEN: Stout used his connections as a former record executive to connect big business with urban oriented marketing campaign, like Jay- Z for Reebok. And he's behind Justin Timberlake's popular slogan for McDonald's.
STOUT: I always look at the music and the art as the Trojan horse for the culture. I could find authentic ways to tap into the branch that hip-hop has created.
O'BRIEN: But hip-hop was something that started from the street. Writer Nelson George says the partnership with big business is watering down the art form.
NELSON GEORGE, AUTHOR: What gets on the radio and most of America is not very content driven. It's more an inducement to dance and then leading it inducement to buy a particular brand of alcohol or clothing or car.
O'BRIEN: Forbes music editor Zack Greenberg says many hip-hop artists make more on endorsements than their recorded music.
STOUT: Again, we're speaking about the music. Most of it is just silly. I think that hip-hop created a culture and I think that that culture was meant to be shared.
O'BRIEN: You said you can draw a direct line between hip-hop and 1600 Pennsylvania Avenue.
STOUT: That younger voter was open minded to an African-American president as a result of the cultural sharing that we're discussing. I believe hip-hop was a main driver of that cultural sharing. If using corporations helped spread that message, then, that's what it takes.
O'BRIEN: Reporting for in America, Soledad O'Brien, CNN, New York.
(END VIDEOTAPE)
ROMANS: Interesting.
Up next, what can't dogs do? Teachers across the country are using dogs in their classrooms to teach compassion and social responsibility. And it's all part of an effort to reduce bullying in schools. So what does being good to your pooch have to do with being good to your peers? How does it work? We have various special two and four-legged friends coming onset with us next. It's 35 minutes after the hour.
(COMMERCIAL BREAK)
ROMANS: Welcome back to AMERICAN MORNING and CNN's continuing in depth coverage of the bullying crisis in America. If compassion and empathy are keys to combatting bullies, what better weapon to fight them than man's best friend? Dogs are helping kids become better equipped to stand up for themselves and for others.
Joining us this morning is Misty Ginicola, a representative of the curriculum, and Penny, who is a little beagle mix, adorable, and two participants in the program. Everybody, welcome to the program. I think that dogs, you see dogs, for example, in nursing home and elderly care facilities, and people, people are more engaged with fellow -- their fellow man when there's a dog in the mix for some reason. Misty, tell me how this empathy for a dog could help with empathy for their peers?
MISTY M. GINICOLA, ASSOCIATE PROFESSOR, SOUTHERN CONNECTICUT STATE UNIVERSITY: Absolutely. Empathy, when you are around a dog the research shows that you are happier, that you are less stressed.
ROMANS: She's a little nervous.
GINICOLA: Yes. You're less anxious and that you experience more positive emotion and just being around a dog increases empathy. Go ahead.
ROMANS: How do you use it then in a classroom curriculum to use it sort of even, I hate to use the word subversively but without even knowing it you're teaching anti-bullying.
GINICOLA: Because you can have a live dog in the classroom or you can also use dog stories and activities. And so we learn about dogs and how they, for example, communicate with each other. They, you know, use barking, we use speaking. You relate what dogs do when you talk about what humans do differently. And we draw that back to being nice to each other, being compassionate and kind.
ROMANS: Right now you're doing this in a lot of different schools, K through three and four through six, a similar program. One of the -- oh, one of the programs is "Wag More, Bark Less." What does that mean? That's one of the lessons.
GINICOLA: That lesson is about gossiping and how gossiping can hurt people and we talk about how dogs, when they're around us, they are happy and they're wagging and when people treat us nicely and they talk about us nicely, then we feel better.
ROMANS: You know, Maya, at your school, not the school you're at now, but previous school, other kids weren't nice to you.
MAYA GANT, STUDENT: No, they weren't.
ROMANS: You're now an ambassador for this program. Tell me a little bit how this is important to you and how you're trying to tell kids in your new school about empathy and compassion and not being mean to other kids.
MAYA: It's kind of, it kind of tags along with the curriculum. The work kind of taught people how not to judge people by what you think they are and how you had to get to know a person before you can judge somebody. The curriculum really helped me see my side the way I was and my classmates. I really enjoyed the curriculum because it made me think that I was important. I had, I had an action in that curriculum.
ROMANS: Michael, do you think being around dogs makes kids nicer, better, opens them up a little bit?
MIKE LAZARRE, STUDENT: I do, because when you act a certain way towards dogs, dogs can sense like how you feel, like if you're scared, dogs can sense it. So, it's to try to help the kids calm down and like learn instead of like trying to be all disrespectful. And it kind of teaches us to be, like not to be rude, but just like to respect each other and help each other out.
ROMANS: That's interesting, too, because that point about how dogs can sense the way you're acting. And someone who is aggressive, a dog can sense that and responds. And a dog also just such a good sense about people. I love this dog.
Let me ask you something, Misty. We know from the research that anti- bullying has to come from a lot of different levels. It has to be more than a dog in the school once a month or once a week even. It has to be having a teacher in control of the room and I know you have done research on this. This is part of the overall picture. A lot has to be done in the whole culture of schools to protect children.
GINICOLA: The climate of the school cannot be open to hostility, cannot be open to bullying, and that really has to be modeled by the staff and by just the atmosphere. You feel respected. You see compassion and empathy throughout.
ROMANS: I think it's fascinating that if we can't, if humans can't teach it to each other. If we can't each other how to behave, let's leave it to the dogs to try to help us. Misty, Maya, Mike and Penny, thanks for coming in for us.
All this week at 8:00 p.m. eastern Anderson Cooper at CNN will bring attention to America's bullying crisis. Then CNN Saturday night watch "Bullying, it stops here." That's the town hall led by Anderson at 8:00 eastern. Morning headlines, next. It's 43 minutes after the hour.
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COSTELLO: Forty-five minutes past the hour. Here are your "Morning Headlines".
Markets open in just about 45 minutes. U.S. stock futures are trading sharply higher this morning. Investors remain optimistic Europe will contain its debt crisis.
Herman Cain's surge to number two in the Republican presidential field has made him a marked man. Cain came under attack during last night's debate for his 999 plan to reform the U.S. tax code. Cain defended the plan calling it a bold idea.
The United States said it foiled a terror plot engineered by Iran. This man in custody, he is Manssor Arbabsiar (ph) a 56-year-old U.S. citizen who also holds an Iranian passport. The Justice Department accusing Tehran of conspiring with Mexican drug traffickers to assassinate a Saudi ambassador on American soil.
The resort town of Puerto Vallarta is getting hammered by Hurricane Jova. Right now it's a Category two storm with 100 miles-per-hour winds. It has lost some steam after making landfall along Mexico's Pacific Coast overnight.
And Billboard's 2011 Woman of the Year is, Taylor Swift. The 21-year- old singer is the youngest ever to receive the honor. Swift's latest album "Speak Now" has gone platinum five times and sold over one million copies in its first week.
That's the news you need -- that's the news you need to know to start your day. AMERICAN MORNING back after a break.
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ROMANS: Get up. If you're on the East Coast, you're late. It's -- it's mostly cloudy, 61 right now, showers and 62. That's a picture of New York City. It's just about the right time on the West Coast and in the middle of the country. COSTELLO: It is.
For more than a decade, one fashion label has remained a hit on the runway. So how has this high street fashion chain continued to thrive year after year?
Our Alina Cho joins us now with a "Fashion Backstage Pass".
ALINA CHO, CNN CORRESPONDENT: Hey good morning. You know for a decade it has been hot but it wasn't always that way. You may be surprised to hear that the oldest fashion house in the world is not Chanel or Dior, but Lanvin. Some of you may be unfamiliar with the name but Lanvin has actually been around since 1889.
Ten years ago it needed a facelift. So one of fashion's most beloved designers came to the rescue.
(BEGIN VIDEOTAPE)
CHO (voice-over): He may not look the part -- but Lanvin's Alber Elbaz (ph) has the face of a cherub and the golden touch.
ALBER ELBAZ, ARTISTIC DIRECTOR, LANVIN: I think that fashion is like a fruit; it has to be relevant for the moment. If you eat the fruit the day after or the day before, it's sour. The same with fashion. It has to be right for the moment.
Try these ones.
CHO: This 50-year-old designer has been making clothes for the moment as creative director of Lanvin for ten years. Resurrecting a label with a good name, but not much else, into a luxury fashion force.
(on camera): You came to Paris just for him?
JULIANNE MOORE, ACTRESS: Yes, yes. Actually.
CHO: Why?
MOORE: I think if you're going to see a show, his work is so spectacular. It's going to be worth it.
CHO (voice-over): And they do come because Elbaz is able to do in fashion what few others can. Create clothes that wow, but don't scream at you.
(on camera): You say your work is like a whisper. Explain that.
ELBAZ: I think that whispering is something very personal because when someone whisper to you has to get really close to you. And this is a very intimate relationship.
CHO (voice-over): Clothes both customers crave and critics adore. All around, there were raves for his latest collection for Spring 2012.
UNIDENTIFIED FEMALE: If you choose those clothes as soon as you put them on, you feel really good about yourself.
CHO: A trendsetter, too. So much so when he created an affordable line for H&M last year, it sold out. And this season Elbaz launched clothes for kids, haut couture -- with three to four-figure price tags. Miniature copies of mom's clothes from the most copied designer on the planet.
(on camera): How do you know that you've made it? How do you define success?
ELBAZ: I don't. Oh, I never know. I mean first of all, I think I'm always the worst. I mean until the day before I think it's going to be a flop and I'm like totally depressed. And then someone said that you know success is like a perfume. If you smell it, it's good. But if you drink it, it's not good for you.
CHO (voice-over): Elbaz says the collection isn't ready until the clothes speak to him.
ELBAZ: Well, I see the world.
And when the dress tells me that she is ok and she doesn't want to go elsewhere, I know I have to leave her alone and let go.
CHO: A designer that creates not just clothes, but a sensation.
(on camera): When you see a woman walking down the street wearing a Lanvin dress, how does it feel?
ELBAZ: Oh, they touch me the most. I feel they chose me and I find it very, very personal. I just want to go and hug them and say thank you for doing that.
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CHO: How do you not love this man? You know, before working at Lanvin, Elbaz was the creative director at Yves Saint Laurent. That is until he was shortly thereafter he was hired, he was abruptly fired by his replacement, Tom Ford. After that he told me he actually thought about quitting fashion altogether and going to medical school.
Now, he says, you see, I don't have to be a doctor. Instead of giving you Tylenol, I will give you a red dress. But he was just a joy to be with. Obviously, I had a lot of fun in Paris, but he -- he is a particularly, you know, sweet soul. And he produces these wonderful clothes that, again, as I said, don't scream at you. You know, you see how beautifully they flow down the runway and he's like a whisperer, as he says.
ROMANS: You look at these captains of the fashion industries and they're so different from the captains of other kinds of industries because he expressed this doubt about when he didn't know right away. Others you profiled said the same thing. It's -- it's genius mixed with creative birth mixed with doubt and confidence all wrapped out into this ball of creative energy. CHO: You're -- you're absolutely right. And that's -- that's really astute of you to notice. In fact what he says is that -- I said do you love the show when you see it coming down the runway backstage on the monitor? And he said I love it for those eight minutes. And then the biggest mistake is I go home and somebody sends me the DVD and I watch it and I hate it.
And he said, you know what -- anyway, he said, someone told me that is what gets me back into the studio the next day.
ROMANS: Right, right.
COSTELLO: I'm just wondering, you know, these clothes are beautiful. And they're works of art, but they're very expensive.
CHO: They are.
COSTELLO: And there is a global, kind of depression thing going on across the country.
CHO: Yes, yes.
COSTELLO: Yes, I mean what's business like?
CHO: Well, business is -- is booming, frankly. And I'll tell you why.
I think that what people who love fashion and want to invest in fashion feel is that, yes, this dress may be a four-figure dress, but maybe I'll invest in it, if I feel as though I'm going to keep it for 10 years or 15 years instead of investing in say something that might be very of the moment.
ROMANS: Yes.
CHO: And be the same price but maybe I won't wear next season. And I must say, the fashion inside world believes that Lanvin does that.
ROMANS: It's the opposite of the throw-away consumer culture that we have sort of celebrated for 10 or 15 years. Buy a lot of things cheap.
CHO: Right.
ROMANS: And don't celebrate -- but who's got the money for that. But it's fun to watch. It's really fun to watch.
CHO: Well, you know what Suzy Meck (ph) is a top critic said to me something very interesting. She said, you know we've had enough of fast fashion. She said this is art.
ROMANS: Right.
CHO: And maybe you can't buy it, but maybe you can appreciate it. I think that's nice. ROMANS: You can see more of Alina's special about art, "FASHION BACKSTAGE PASS" in Paris, that airs this Saturday, the 15th of October at 2:30 p.m. Eastern.
COSTELLO: Coming up next, your answers to our "Talk Back" question of the morning. "Does Mitt Romney's changing position on health care matter?"
Fifty-six minutes past.
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COSTELLO: "Talk Back" question this morning. "Does Mitt Romney's changing position on health care matter to you."
This from Brian. "No, it doesn't matter to me. Because it's not apples to apples. There's a big difference between the state and federal levels."
This from Zachary, "Mitt Romney changes his mind more than Lady Gaga changes costumes. He should take one position on healthcare and stick with it because he's starting to appear conspicuously inconsistent."
This from Edward, "Romney is guided by one unchanging principle and that principle is, Mitt Romney for president."
And this from Bill, "At least he cared enough to create a plan. Far less can be said about the majority of the GOP. Some of the other plans are laughable."
Thank you for your comments this morning.
Let's head to Atlanta and Kyra Phillips. Good morning Kyra.
ROMANS: Good morning, Kyra.
