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American Morning
Penn State Rocked by Scandal; Berlusconi Clings to Power; Mississippi to Vote on Controversial Anti-Abortion Bill; Ohio to Vote on Controversial Public Employee Collective Bargaining Measure; Changing the World on the Web; Casino Comes to the Big Apple; Cain Defiant; Stores Slashing TV Prices; RPT: De Niro To Play Madoff
Aired November 07, 2011 - 08:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(COMMERCIAL BREAK)
CHRISTINE ROMANS, CNN ANCHOR: I'm Christine Romans.
Penn State rocked by a child sex abuse scandal. A former coach facing life behind bars if convicted. And there are serious questions this morning about how the legendary leader of the Nittany Lions, Joe Paterno, handled this case when it crossed his desk nine years ago.
CAROL COSTELLO, CNN ANCHOR: Oklahoma "earthquake alley" this weekend.
I'm Carol Costello.
Dozens of aftershocks ripped through the area following the biggest quake in the state's history.
ALI VELSHI, CNN ANCHOR: And I'm Ali Velshi.
Real concern about the financial stability of Europe. Greece's prime minister agrees to step down. And now, there are reports that Italy's prime minister may be the leader next to fall. What Silvio Berlusconi is saying now on this AMERICAN MORNING?
(MUSIC)
ROMANS: And good morning, everyone. It is Monday, November 7th. A lot going on here and around the world, but a lot of good news this weekend.
COSTELLO: Oh, yes. So, let's get to it. First up this morning, the scandal that's rocking Penn State's legendary football program. Jerry Sandusky, a former coach with Nittany Lions for more than two decades faces multiple counts of child sex abuse this morning.
And late last night, Penn State's athletic director and the university senior vice president for finance and business -- they stepped down. They resigned. They are both facing perjury charges, and they are facing questions about the way the program's iconic head football coach, 84-year-old Joe Paterno handled this matter nine years ago.
Jason Carroll joining us live this morning from State College, Pennsylvania.
Jason, good morning.
JASON CARROLL, CNN NATIONAL CORRESPONDENT: And good morning to you.
And, Carol, as you know those two school officials who resigned did so after an emergency meeting with the board of trustees here late last night. Those two school officials expected to turn themselves in later today. But, of course, the investigation is clearly still focused on Jerry Sandusky.
(BEGIN VIDEOTAPE)
CARROLL (voice-over): He's a legend in the world of college football. For 23 years, Jerry Sandusky served as defensive coordinator for the Penn State Nittany Lions. Now, he is out on bail and defending himself against charges he sexually abused young boys, one as young as 8 years old.
Two other Penn State officials accused of covering up resigned in the wake of the scandal.
Sandusky's lawyer says his client is innocent.
JOSEPH AMENDOLA, JERRY SANDUSKY'S ATTORNEY: Jerry is very, very depressed. He's very upset. He's very distraught about the charges, the allegations and the knowledge that regardless of whether he is eventually proves his guilt or innocence, people are going to think that he did this stuff.
CARROLL: Pennsylvania's attorney general calls Sandusky a, quote, "sexual predator." The 23-page grand jury report lays out in graphic detail how he allegedly targeted eight boys ranging in ages from 8 to 14. Prosecutors say the boys were victimized between 1994 and 2009.
In one case, a graduated student testified he discovered Sandusky sexually abusing a boy estimated to be 10 years old in the shower of the Penn State football building. The student reported it to Penn State head football coach, Joe Paterno, who in turn told his immediate supervisor, the athletic director, Timothy Curley, who has also brought to the attention of Gary Schultz, a university senior vice president.
Prosecutors questioned why none of the men reported the incident to police, which is required under Pennsylvania law. Both Schultz and Curley are charged with perjury for allegedly lying to the grand jury. The men testified they were under the impression that Sandusky was, quote, "horsing around" with the boy in the shower. Both men resigned late Sunday. The board released a statement saying under no circumstances does the university tolerate behavior that puts children at risk.
JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST: Let me just say something about -- you know, there is a big moral issue about the behavior of Penn State here, about their failure to act. But the legal issue is whether they lie.
CARROLL: According to the grand jury report, all of the alleged victims came into contact with Sandusky through his charity, the Second Mile.
UNIDENTIFIED MALE: Second Mile is a nonprofit organization that reaches out to serve young people throughout the state of Pennsylvania.
CARROLL: Sandusky and his wife formed the Second Mile in 1977 to help troubled boys. He retired from coaching in 1999 and still had access to Penn State facilities, so popular he wrote an autobiography in 2001 entitled, "Touched: The Jerry Sandusky Story."
(END VIDEOTAPE)
CARROLL: And, Carol, Sandusky is currently out on $100,000 bail. And later today, the attorney general is expected to hold a press conference. She will answer questions and reveal more details about this case -- Carol.
COSTELLO: And you have to wonder, Jason, if this will affect other university officials. I mean, the coach, Joe Paterno, who knows? I mean, two officials have already stepped down. The university president, he knew this. Will he eventually step down? We don't know.
CARROLL: There so many questions about this, Carol, and when you think about these officials, about what they know now, for some of these officials, it may not be a legal question. But one person out here clearly told me it's a moral question. When you hear about allegations of an older man being in a shower with a young boy, under any circumstances, many questions about why something like that was not immediately reported to police.
COSTELLO: Jason Carroll, reporting live for us this morning, thanks.
VELSHI: The "Occupy" protesters are showing no signs of slowing down and there's a new addition to the movement here in New York. A women-only tent has been set up for Wall Street protesters at Zuccotti Park. It's a guarded sleeping space that holds about 15 women. The new tent comes after police charged a Brooklyn man for sexually assaulting a woman at the park last week.
ROMANS: And "Occupy" Atlanta protesters return to the streets last night, only one day after a clash with police at Woodruff Park. Police arrested 19 demonstrators for refusing to leave the park after closing and blocking traffic. One protester was charged with aggravated assault.
COSTELLO: The jury is back at it again in the Michael Jackson death trial, at least it will be. Deliberations will resume later this morning. The jurors could not reach a verdict on its first full day of deliberations on Friday. They must decide if Dr. Conrad Murray gave Jackson a lethal dose of Propofol.
In the meantime, Katherine and Joe Jackson, they're on verdict watch. They're staying at a hotel near the courthouse anxiously awaiting a decision.
VELSHI: Well, this could be a lost season for the NBA.
COSTELLO: Wow.
VELSHI: Lockout players have until Wednesday to accept the league's latest contract offer. It's reportedly worth 49 percent to 51 percent of the NBA's revenues. The head of the players' association already says he's not even bringing it to a vote.
COSTELLO: Wow.
ROMANS: All right. Major developments this morning in the political and financial crisis that is consuming Europe.
Just as Greece attempts to at least temporarily get a better handle on its debt crisis by announcing its prime minister has agreed to resign, another country is teetering this morning. This time, it's Italy and the problems there maybe too big for a bailout. This is Europe's third largest economy.
Right now, that country's prime minister, Silvio Berlusconi, is denying reports that he is on the verge of stepping down. But you just heard Niall Ferguson right here say he thinks it's only a matter of time because he does not have the confidence.
VELSHI: Right.
ROMANS: Silvio Berlusconi does not have the world confidence in solving its problems and getting this thing under control.
COSTELLO: And more important, if he doesn't have his parliament's confidence which, of course, could force him to step down.
What's happening in Europe is having a direct impact on stock markets right now. U.S. stock futures are down. And in Europe, where trading is under way, the market is also down.
VELSHI: Let's go right to our own Matthew Chance who's standing by. He's listening to everything that's going on.
Really conflicting information about these rumors that Berlusconi might step down as early as today. What are you hearing, Matthew?
MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, Silvio Berlusconi himself has gone on his Facebook page and issued a denial saying that, you know, the rumors that he's going to step down are without foundation. So, that's basically put (INAUDIBLE) to this idea that he was going to step down within a few minutes or within a few hours. But, certainly, that's been the speculation, absolutely right.
Around Rome, in political circles, amongst journalist, his allies as well, saying that essentially the days of Silvio Berlusconi as Italian prime minister are numbered. He just lacks the credibility of the markets that he can follow through, push through the very important severe economic reforms that the country needs, to bring this economy back on track.
In fact, when there was this speculation he was going to step down, the markets actually viewed it favorably and the interest rates on Italian bonds actually decreased. Only when a denial came out that they resume their upward trends. That gives you an indication of the level of -- lack of credibility Silvio Berlusconi has amongst the markets and to some extent, to a very large extent as well amongst the voters of Italy -- Ali.
VELSHI: You know, Matthew, last week when I was in Cannes with -- our colleague Becky Anderson, she interviewed the head of the E.U., Mr. Barroso, who said, you know, one of the things that's different this time around is that markets work substantially faster than the politics in the parliaments than any of these countries do. So, the markets may be a bigger determining factor than what politicians feel they can withstand or what they can do. It's all about credibility, as you said.
Matthew, we'll stay close to the camera. And, obviously, you got work to do to continue to confirm and check out sources, but we want to be on top of this story as you get more information on it.
Matthew Chance is in Rome for us.
ROMANS: And the key for the U.S. here is that you cannot have Europe on the verge of falling into another severe recession.
VELSHI: They buy things. They are the biggest trading partner for the United States.
ROMANS: The U.S. can't have a recovery that matters which Europe in crisis and turmoil. And that's why it matters for everyone around the world.
VELSHI: All right. Let's bring it home, still ahead, Herman Cain refusing to answer any more questions about the sexual harassment allegations he's facing. But can he keep his presidential campaign on message? We'll talk about that on the other side.
And a string of aftershocks in Oklahoma, this after a record breaking quick rocked the state. A TV news anchor on air, live, when the ground shakes. We'll show the video and tell you what happened.
COSTELLO: To him and his duratran.
COSTELLO: Plus, it's what everyone is talking about, from the MTV European Music Awards. Just who or what is that?
VELSHI: Katy Perry? Lady Gaga? We'll tell you after the break.
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VELSHI: Good morning, Oklahoma. The ground is still. It is 65 degrees, going to get up to 68. You're going to have strong storms, but after the weekend, you had -- that's OK.
COSTELLO: Who cares?
ROMANS: I know. A weekend of aftershocks in Oklahoma, unbelievable there -- a rare and powerful earthquake rocking the state. A 5.6 quake striking near Sparks in Lincoln County late Saturday. It's the strongest ever in Oklahoma. And this was only hours after another large quake hit the same area. They felt it as far away, we're told, in Texas and Arkansas.
Central Oklahoma experiencing more than 30 aftershocks. Several homes were damaged severely. Local news anchor Ed Murray from KWTV --
VELSHI: Cool as a cucumber.
ROMANS: Cool as a cucumber. On the air when the ground shook and he reports it, with the plum, I would say.
(BEGIN VIDEO CLIP)
ED MURRAY, ANCHOR, KWTV: Another earthquake has just hit. I still hear a few lights rattling here in our studio. And we will -- we still have our -- if you can see our duratran back here, I don't know if you can see it behind us, still shaking here in Oklahoma City.
(END VIDEO CLIP)
ROMANS: At least one person suffered minor injuries there.
VELSHI: I'd get under the desk.
COSTELLO: Yes, I'd get away from that.
VELSHI: While I was on the air.
COSTELLO: I'd get away from that duratran.
VELSHI: Angle those cameras down. I'm not going to hang out here with all these lights and all that's going on.
COSTELLO: No, you would stay on the air for the sake of the viewers.
VELSHI: People just need to hear me, not see me.
COSTELLO: True.
VELSHI: Seeing me is not really a strong suit anyway.
ROB MARCIANO, AMS METEOROLOGIST: Yes, I know. It's that golden voice, you know?
VELSHI: That's it.
MARCIANO: Being in a TV studio during an earthquake is kind of like being in that silo in the movie twister with all the blades and circles hanging around. Not a good thing.
(LAUGHTER)
MARCIANO: Hey, you guys mentioned the storms possible across parts of Oklahoma today. And, that's exactly where we're going to see it. We're into fall now. So, this is, yes, severe weather season. Not quite as long lasting or as intense typically spring, but we definitely had the threat seeing that tornados or storms that can produce tornadoes through the afternoon today, and then, actually, as we go through tomorrow.
Of course, into fall, it will be cooler. So, backside of the systems, you can get some snow as well. Snow from Eastern Colorado all the way back to parts of Wisconsin over the next 48 hours. Winter storm warnings are posted for parts of the high plains. All right. This storm is going to move to the east throughout today and tomorrow. Moisture is going to be picked up in the Gulf of Mexico.
So, we will not only see the threat today, but the red extends tomorrow and through parts of deep south and the mid-south progressing into parts of Louisiana and also into Arkansas. East of the Mississippi today, it's perfect. It's beautiful. Looking at the gorgeous weather.
Parts of Southern California yesterday saw some storms. Today's high temperature will only be in the lower 60s. So, kind of cool there in SoCal, 62 in L.A., and 62 as well up there in New York. No earthquakes to report to you this morning. Certainly none here in Atlanta. Guys, back up to you.
VELSHI: Same temperature in New York City as it is in Los Angeles today.
MARCIANO: Yes. There you go. Love fall.
VELSHI: Take that, L.A. Thank you, Rob.
MARCIANO: All right.
VELSHI: Good to see you, my friend.
Herman Cain says he's through answering questions about the sexual harassment allegations that he's facing, but even if he doesn't want to discuss it, his Republican rivals are happy to do so. So, how does he keep on message? Can he continue to resist the conversation?
Let's ask us next two guests. CNN contributor, Hilary Rosen and Republican strategist, Ed Rollins, former campaign manager for Michele Bachmann. Great to see you, too.
HILARY ROSEN, CNN CONTRIBUTOR: Hey, Ali.
VELSHI: Live in person. Ed, nothing helps you get respected like not being here. I was in Cannes last week for the G-20, and you know, we all thought there that that was the biggest story going on, but every time I was listening to news, the Herman Cane issue was the biggest thing going on, and you said that he needs to have a conference and clear the air. Tell the truth. Now, let's just tell you what he's done now. He got (ph) a news conference this weekend. Here's what he said.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Mr. Cain, the attorney for one of the women who filed sexual harassment --
HERMAN CAIN, (R) PRESIDENTIAL CANDIDATE: Don't even go there.
UNIDENTIFIED MALE: Can I ask my question?
CAIN: No.
UNIDENTIFIED MALE: Can I ask a good question?
CAIN: Where's my chief of staff?
UNIDENTIFIED MALE: I'm right here.
CAIN: Please send him the journalistic code of ethics.
(END VIDEO CLIP)
VELSHI: OK. Ed, let's talk about this. He has been a media darling, really. He makes himself very available. He talks to the media a lot and says more than he should, sometimes. Now, he's clamming up. What happened?
ED ROLLINS, REPUBLICAN STRATEGIST: Well, it will destroy him, because at the end of the day, the oldest rule in politics is (INAUDIBLE) a long time. A charge that's made has not (ph) answered sticks. And so, if he doesn't want to go out and respond to this, this charge will be there, and the media will continue to look at it, and sooner or later, it will become a bigger and bigger story.
At the end of the day, he's never going to get back talking about 9-9-9 or any rest of it (ph). The other thing is, he's a very likeable man and what's been part of his great skill is that you like him. That's not a likeable man --
VELSHI: Right.
ROLLINS: The media is a part of the game. Whether you like it or not, it's a part of the game. And if you want to pretend like it's not there, you're not going to do well.
VELSHI: We certainly liked him. There's no question.
ROSEN: He's likeable, but he's making a singular mistake which is he is being fooled by his own internal polls and his fundraising success in the last few days, which has come from a group -- a die- hard group of conservatives who don't like Mitt Romney --
VELSHI: Right.
ROSEN: And want an alternative. And so, he's raised more money in the last few days than he's raised, you know, his entire campaign. And, he's still strong in the polls. And, he thinks that's because people don't care about what he's done. I think that's a mistake.
VELSHI: Well, you've worked, you both worked in campaigns that have been successful and have been unsuccessful. Is there anything he can do at this point? He said, I want to stay on message.
ROLLINS: There's no message. Nobody is interested in anything else that he has to say at this point in time. And I think at the end of the day, this is a serious challenge. And, you know, if this was Mitt Romney or anybody else, they have to respond. It's not an unfair thing. And the fact that there were payoffs what have you -- you know, it's an abuse of power, and they don't want presidents to abuse power.
VELSHI: What do you think, Hilary? Anything he can do?
ROSEN: I think he's got all the advice in the world. Republicans from Haley Barbour to, you know, liberal Democrats like me given the same advice, and he's not taking it.
ROLLINS: He's not taking. He's not going to take it.
VELSHI: Now, who wins from this? I mean, who gets the biggest pop out of this?
ROLLINS: Well, the bottom line is his 25 percent, which, you know, we've had seven people who've led polls over the last year.
VELSHI: Right.
ROLLINS: I mean, everybody from Donald Trump to Michele Bachmann to Cain and Perry until there's no group breaks up. That 25 percent, nobody else benefits, but my sense is, who does benefit? It could be Perry. It could be Mrs. Bachmann. It could be some of the others that are there campaigning in Iowa. It's less than 60 days to the Iowa. Whoever wins Iowa basically will be the person --
ROSEN: The only one that's really moved up since then has been Gingrich.
VELSHI: Right.
ROSEN: Perry and Bachman and everybody else are moving down. But really, the big gainer here is Mitt Romney.
VELSHI: Sure.
ROSEN: It becomes more and more inevitable. Even though just in a poll this past week, only 17 percent of Republicans said that they think that he's honest and truthful. More people thought Herman Cain in this poll was honest and truthful than Mitt Romney. This is his central problem, and the Republicans are going to keep looking for an alternative until the last minute.
VELSHI: So, one guy who sort of thought he might benefit from this is Jon Huntsman. Jon Huntsman has not been able to move the needle at all. At one percent in the polls roughly everywhere you look, and yet, he's had endorsements from all sorts of people, people who like him. What do you make of this?
ROLLINS: You know, Jon is a very talented guy. He's a young guy worked in the White House when I was in the White House. He's got all the credentials, but his ideology does not fit the Republican Party today. And he basically went out. I thought he was a candidate for the future, but I think he's diminished himself.
And I think at the end of the day, the magic was that he was going to use his own money and go out and be viable. He hasn't done that. And he's certainly not moved any polls, and I don't think he can beat Romney in New Hampshire, which is what he's all strategy.
ROSEN: It's a big gift to Democrats that Republicans have rejected Jon Huntsman, because he could appeal to independents.
VELSHI: Those independents --
ROSEN: Yes, that's right.
VELSHI: But Romney doesn't probably will appeal to some of those independents.
ROSEN: Well, Romney has a lot of problems. In addition to the fact that people don't seem to trust him because he is inconsistent overall. The problem with Romney now is, here you have a guy who's made all of his money on Wall Street. You know exactly the wrong place to have made money in this presidential election year.
You have somebody who has said that he is going to do things like repeal health care, but yet, he wants to appeal to independent who actually think it's a good thing if more people are insured. So, you know, he doesn't really have a place to go beyond the Republican primary.
ROLLINS: I would argue. I would argue. This is a president that has great vulnerability. Either Cain in a damage condition Romney showed that even with him in polls as a year to go before the election, a lot is going to happen. I think Romney is going to be one of the frontrunners, and there'll be someone challenge him in the rest of the way, but in 90 days, we'll know pretty much who nominee is going to be.
ROSEN: I think that's right, and the one thing to remember is Barack Obama's gained in popularity in this last two weeks.
VELSHI: Right.
ROSEN: Mostly, I think, because he's really out there fighting, but also because the republicans are starting to implode a little bit. They're looking badly here.
VELSHI: Ultimately, what happens --
ROSEN: And that helps President Obama.
VELSHI: What happens in this economy, and we are, as you mentioned, a year away. It's going to have a lot to do with --
(CROSSTALK)
VELSHI: Good to see you both. Hilary Rosen, CNN contributor, and Ed Rollins, Republican strategist.
All right. Check on the markets next.
Plus, get ready for some spectacular holiday deals. Black Friday just around the corner. There's one product in particular that's already dropping in price. It's 23 minutes after the hour. We'll be right back.
(COMMERCIAL BREAK)
ROMANS: All right. Welcome back. Twenty-six minutes after the hour. "Minding Your Business" this morning.
Italian Prime Minister, Silvio Berlusconi, says he does not plan to resign despite growing opposition to his government and its reforms.
And in Greece, Prime Minister George Papandreou said he has agreed to step down in order to help Greece secure more European bailout funds.
(INAUDIBLE) Europe weighing on investors right now. The Dow, the NASDAQ, S&P 500 futures all trading lower this morning.
All right. Consumers here in the U.S., there's no need to wait until Black Friday if you're in the market for a new TV. Retailers have already started slashing the prices for big screen TVs, and it could be by as much 40 percent. Experts say stores are trying to stir up excitement to get you in the door early this holiday season. Some retail experts say that the sales are going to continue.
Who needs Shrek? "Pus in Boots" was number one at the box office for second week in a row with $33 million haul.
And Robert De Niro reportedly wants to add Ponzi schemer to his acting resume. According to report, De Niro will play Bernie Madoff in the HBO version of "The Wizard of Lies: Bernie Madoff and the Death Trust." Up next, is a fertilized egg a person? When does life begin? Mississippi voters are about to decide what defines a person. A look at the controversial concept aimed at outlawing abortion, next. AMERICAN MORNING back right after this break.
(COMMERCIAL BREAK)
COSTELLO: It's 30 minutes past the hour. When does human life begin? Mississippi voters take on a controversial amendment that could change abortion laws and affect the availability of some forms of birth control for all women, on this American.
VELSHI: Good morning. It's crossing the half hour. Your top stories now. Penn State's storied football program is rocked by scandal. Former defensive coach Jerry Sandusky charged with sexually abusing eight boys. The university's athletic director and a senior vice president stepping down late last night. They're and facing perjury charges, accused of lying to a grand jury to cover up the case.
ROMANS: A big change on Wall Street. A women only tent has been set up for protestors in Zuccotti Park, the home base for the movement. This new tent comes after police charged a Brooklyn man for allegedly sexually assaulting women at the park last week.
COSTELLO: Mississippi is voting on a controversial amendment tomorrow, one that could have a big impact on the entire nation. Voters will basically be answering the question, does human life begin at conception? Opponents of the amendment are afraid it's an effort to make abortion illegal. But what's more controversial, critics say the amendment outlaws some forms of birth control and bans in vitro fertilization.
CNN's David Mattingly has more for you.
(BEGIN VIDEOTAPE)
DAVID MATTINGLY, CNN CORRESPONDENT: A few years ago, in vitro fertilization brought Robin and Emily Carpenter a baby boy. They are rushing to try it again, worried that if they wait, they might break the law.
(on camera) Are you afraid this will pass and all your plans will be interrupted?
EMILY CARPENTER, MOTHER: Afraid, yes, but it's a chance we want to take.
ROBIN CARPENTER, FATHER: I don't want or need anybody else to get involved in trying to limit how it works for us for stopping us.
MATTINGLY (voice-over): The Carpenters are among Mississippi voters fearing possible ramifications of Amendment 26.
UNIDENTIFIED FEMALE: Now we know an unborn baby is a person. MATTINGLY: It's an proposed anti-amendment that defines a person at the moment of fertilization, cloning, or the functional equivalent. But more than stopping abortions, even in the cases of rape or incest, critics say legal protection for all fertilized eggs could affect forms of birth control and in vitro fertilization.
ROBIN CARPENTER: If it means I'm able to have children, it's a risk that we will definitely take.
MATTINGLY: If the so called "personhood amendment" passes, the Carpenters say they may go out of state for fertility treatment. Women wanting abortions would have to do the same.
There is only one abortion clinic in the state of Mississippi, and this is it right here in the city of Jackson. Administrators say they perform from 2,200 to 2,500 abortions a year.
Inside, clinic owner Diane Derzis seeks common ground with voters traditionally opposed to abortion.
DIANE DERZIS, CLINIC OWNER: By this very definition on this bill, a fertilized egg is a person.
MATTINGLY: Phone banks like this reach 30,000 voters a day in this deeply conservative state. But "no" votes appear a tough sell when prominent Republicans and Democrats both support the amendment.
(on camera): Can you be pro live and be against this amendment?
DR. FREDA BUSH, SPOKESPERSON, YES ON 26: This amendment is clearly simple. Life begins at the beginning.
MATTINGLY (voice-over): Proposition 26 advocate Frieda Bush is an ob-gyn who said passing the personhood amendment would start a legislative overhaul of state laws and the challenge to abortion rights nationally.
BUSH: I hope it does reignite a culture of life in Mississippi and that this will spread to America.
MATTINGLY: The Carpenters describe themselves as pro-life, and their no votes on proposition 26 came after some serious soul searching. If it passes, both sides are preparing a plunge into a legal unknown with challenges aimed at reaching the Supreme Court.
David Mattingly, CNN, Jackson, Mississippi.
(END VIDEOTAPE)
VELSHI: Interesting story. We will be watching closely.
COSTELLO: Coming up on American, Ohio voters will hit the polls and decide the fate of the bill that limits collective bargaining rights. Why some say this could seriously impact the 2012 race to the White House.
It's 35 minutes past the hour.
(COMMERCIAL BREAK)
COSTELLO: Good morning to our friends in Washington. Patches of fog, 43 degrees, but later what a beautiful day. It will be 64.
The national spotlight, actually, is on Ohio today. Voters are about to hit the polls to decide whether to keep a controversial bill that would strip public unions of collective bargaining rights. Since Ohio's a swing state, the vote could hold some serious political consequences for the 2012 elections.
Joining us live from Pittsburgh is Paul Sracic, professor and chair of the political science department at Youngstown State University. Welcome, Paul.
PAUL SRACIC, CHAIR OF POLITICAL SCIENCE AT YOUNGSTOWN STATE UNIVERSITY: Good morning, Carol.
COSTELLO: So this bill was passed in March by the Ohio state legislature, was signed into law by the governor, and it limits collective bargaining for public employees and reduces what they can bargain for, among other things -- and reduces what they can bargain for. And this includes firefighters, it includes police officers, it includes teachers. And some say because it includes teachers, police officers, and firefighters, this is why this thing will go down to defeat today.
SRACIC: This is a much bigger law than was passed in Wisconsin earlier which caused such a controversy, because this affects police officers and firefighters. And it's a larger bill and it makes it much more controversial. This has really gotten out the vote it seems in Ohio, particularly among unions, both public and private actually, are very interested in the issue.
COSTELLO: And is it a case that the Republican overreached? Many Ohioans are for limiting collective bargaining rights as it applies to public employees, but not to firefighters and police officers and teachers.
SRACIC: Exactly. I think if you look inside the law, there's a lot of things that probably would be popular and are popular actually with the people of Ohio, things like requiring public employees that are in unions to pay a certain percentage of their health care costs and to pay a certain percentage of their retirement. These kind of things are popular.
To me this is a little bit parallel to the national health care debate, because in that case if you look inside the reform act, there are a lot of things seem to be popular within it, but when you take it as a whole, it seems unpopular with the American people. So it's the same in Ohio. I think there are things in this bill that are popular, but as a whole it seems unpopular, at least according to the polls of the citizens of Ohio.
COSTELLO: So if voters in Ohio vote to throw out this bill, this new law in Ohio, what will it say to the presidential election in 2012, because does that mean that unions have organize and are stronger? Because they are the reason this is on the ballot in the first place, right?
SRACIC: Exactly. And this is forced a real bond between the unions and private unions. And what's happen is they have gotten incredibly organized to fight this fight. If you look at the number of signatures that were on the petitions, to get this on the bill, you need less than 300,000 and they collected 1.3 million signatures. So that makes a lot of organization to get the signatures on the ballot.
These connections that are being made and the organization among the unions will probably be a factor in 2012 because they are probably going to be working for Barack Obama.
COSTELLO: That's right. They will be working for Barack Obama. Obama won the state of Ohio by five points in 2008. But when you put him up against Mitt Romney today, doesn't he lose?
SRACIC: It's very close and within the margin of error in most polls. So what that means is if nothing changes between now and a year from now, November of 2012, organization and get out the vote will win Ohio. And often that's the case. You have to make sure the vote is there.
And this kind of organization that the unions are doing now and the connections they are making could be vital to President Obama as he seeks reelection and could be poison to the Republicans, Mitt Romney, whoever the nominee eventually is.
COSTELLO: Paul Sracic, thanks so much for joining us this morning. We appreciate it.
SRACIC: Thank you.
COSTELLO: To read more about Paul Sracic's thoughts on the critical Ohio vote and what it could mean for the 2012 election, head to CNN.com/opinion.
Morning headlines coming your way next. It's 42 minutes past the hour.
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ROMANS: It's 44 minutes after the hour. Here are your morning headlines.
Stocks are struggling this morning. There's 45 minutes to go to the opening bell right now. The Dow, NASDAQ, and S&P futures are trading lower. That indicates a lower day for stocks. Investors are still nervous despite the formation of a new Greek government.
Investors are also shifting their attention to another debt burdened country now, Italy. Prime Minister Silvio Berlusconi's office is denying report that is the leader is on the verge of stepping down there. Penn State's athletic director and a senior vice president have stepped down. They're facing perjury charges. Prosecutors say they lied to cover up child sex abuse charges against former Nittany Lions defensive coach Jerry Sandusky.
It's day two of the jury deliberations of the Michael Jackson's death trial. The jurors must decide if Dr. Conrad Murray gave Jackson a lethal dose of Propofol. If convicted, he faces four years in prison.
More than 1,500 hikers rescued from an area around Mount Everest; bad weather left them stranded for six days with little food or supplies.
Eighty thousand residents still without power in Connecticut this more than one week after a snowstorm slammed the area. Connecticut Light and Power missing it's self-declared deadline to restore electricity to 99 percent of its customers at midnight.
And the search is on for a 2-year-old boy who has gone missing in Bellevue, Washington. Police say his mother left him in the car alone yesterday morning when she ran out of gas. When she returned an hour later, he was gone. Rescue teams are searching the area.
Former heavyweight boxing champ Joe Frazier is fighting liver cancer at a Philadelphia hospice. His manager says he is seriously ill. The 67 year-old smoking Joe went toe to toe with Mohammed Ali three times in the 1970s and was the first fighter ever to beat him.
That's the news you need to start your day. AMERICAN MORNING is back right after the break.
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VELSHI: All right, good morning New York City 49 degrees and sunny. It's going to stay sunny 62 degrees today. I'll be staying in New York City.
COSTELLO: That sounds great, doesn't it? It's time to get out and run.
VELSHI: A little warmer than it was for the marathon yesterday.
COSTELLO: Time to get -- yes speaking of running.
VELSHI: Still -- still my people prevailed.
ROMANS: He always takes credit for it somehow.
VELSHI: Right, I was born in Kenya. The guy who won was a Kenyan.
ROMANS: And you've run how many marathons?
VELSHI: No, my people collectively run marathons. We don't each have to run one. I was with him in spirit. A record time two hours and five minutes and some odd seconds, it's crazy.
COSTELLO: That's right, the woman who won by the way was from Ethiopia. We don't know her time, but we're going to get it. It was an amazing time as well.
ROMANS: I know and she's 27 years old and amazing.
All right, there you go it's glamorous and the ultimate beauty pageant. The Miss World competition. Take a look at this year's winner. Miss Venezuela, 21-year-old Ivian Sarcos is crowned Miss World last night beating out 121 other contestants. She holds a degree in human resources and already started her own foundation to help children. The runner up is Miss Philippines and Miss Puerto Rico took third place.
VELSHI: My she looks happy.
ROMANS: They always cry.
VELSHI: Yes, I would cry too if I were Miss World.
COSTELLO: After running a marathon; that is so hard.
VELSHI: Right there are too a whole a lot of other complexities involved in that.
One artist donning some serious head gear at last night's MTV Europe Music Awards. Imagine who that must be. Lady Gaga she dominated the award show from behind that satellite dish she was wearing. Picking up awards for best female act, best song and video. Justin Bieber by the way is the other big winner, winning best male act and best pop act.
ROMANS: What is --
VELSHI: That's crazy. She wears some crazy stuff.
COSTELLO: Part of her charm.
It looks like the tooth fairy broke the bank this time around. One of John Lennon's teeth -- this is so gross to me --
(CROSSTALK)
VELSHI: Yes it's true.
COSTELLO: It really is, it's sold for more than $31,000 in auction.
ROMANS: Can you imagine eating your Cheerios and you look up and you see that?
COSTELLO: I'm sorry we have to show you this, this morning. Lennon actually gave this tooth to a former housekeeper back in the late '60s. She claims Lennon had originally told her to throw it out. Then he found out her daughter was a Beatles fan and said keep the teeth as a souvenir.
It was in the family's possession ever since until of course now a Canadian dentist claims Canada --
VELSHI: You just throw your own tooth out, like why would you give it to your housekeeper to dispose?
ROMANS: Well because he said throw it out and then he said I know your daughter is a big fan.
VELSHI: Why did you give her my tooth?
(CROSSTALK)
ROMANS: Well you know --
VELSHI: That's a weird story. I've got nothing else to give your daughter, but you've been really good to me so here's my rotten tooth decay.
COSTELLO: Hey it was worth $30,000.
ROMANS: Well I know, it's a good draw maybe for a new business.
VELSHI: It's just a weird story.
COSTELLO: Yes.
ROMANS: All right, changing the world using the World Wide Web. A social networking start-up trying to make a difference directly connecting people in need with others who are willing and able to help them. The Web site's CEO knows firsthand what a commitment to a cause can accomplish. He only needs to look to his family legacy.
CNN's Soledad O'Brien sat down with the CEO and founder of the Web site.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Thank you.
SOLEDAD O'BRIEN, CNN SPECIAL INVESTIGATIONS UNIT CORRESPONDENT (voice-over): Eight months ago, La Toya Reid was struggling to get by.
LA TOYA REID: I was facing addiction, my bills were severely behind. And I didn't know where the money was going to come from.
O'BRIEN: The single mother of three went online in search kindness and found it from a tech start up called GiveLocally.net, it marries social networking with charity.
BRAD NEWMAN, GIVELOCALLY.NET: Technology is the way we believe to take the biggest dent out of poverty.
O'BRIEN: Which is the driving force for founder Brad Newman and CEO Andrew Young III, the son of the famed civil rights leader, Former Congressman and UN ambassador of the same name.
ANDREW YOUNG III, CEO, GIVELOCALLY.NET: Here I'm able to explore my entrepreneurial dreams and at the same time live up to my family expectations of giving back.
O'BRIEN: The site posts profiles of those in need then allows donors to select a recipient and an amount.
UNIDENTIFIED MALE: We pre-screen and vouch for every single family and individual that we put on our site.
NEWMAN: We never give cash we write checks to landlords, to doctors, to utilities.
O'BRIEN (on camera): How do you make money off of it?
NEWMAN: We take 18 cents of every $1 distributed but not above nor I nor any of our senior management take a single penny in salary and in other form. What we get out of this is giving back.
O'BRIEN: Do people ever give you push back on that number, that 18 percent?
NEWMAN: Almost never. We don't have government money, we don't have grant money from foundations. Our product is helping people. We are a start up and not a charity.
O'BRIEN: Does it feel like you are changing the world in this capacity?
YOUNG: You know, I feel like we are doing our small part. We think we have the opportunity to change lives across the country by the thousands or even tens of thousands, but I'm not going to be so optimistic to think that this process could just eradicate poverty.
REID: I'm here. Everybody say grace.
O'BRIEN: La Toya Reid is proof of that impact.
REID: I did not realize that there were so many giving people out there. Even $5 helps. It goes a long way.
O'BRIEN: Reporting for "In America", Soledad O'Brien, CNN, Atlanta.
(END VIDEOTAPE)
VELSHI: All right. It's 53 minutes after the hour. We'll be right back.
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COSTELLO: A live picture for you from the White House now. We are just hearing that President Obama will be speaking from the Rose Garden. That will come your way at noon Eastern. The topics we hear: tax credits included in his new jobs plan and new ways to help veterans find work. You can see the President's speech live right here on CNN at noon Eastern.
ROMANS: All right. For years New Yorkers have endured a three- hour car ride to find the nearest casino in Connecticut or New Jersey but it's all changed now since the Big Apple has opened its first casino.
And as Richard Roth reports -- as only Richard Roth can report -- city officials are betting on Resorts World to bring in some much-needed revenue.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: We are open.
RICHARD ROTH, CNN CORRESPONDENT: Start spreading the news. New York City's first ever casino is now open for gambling business. The city that never sleeps has also been the city that you never could spin a slot machine.
UNIDENTIFIED FEMALE: I love the slots. I just love it here. And I'm so glad it came to New York.
ROTH: The Genting Group, largest gambling operator in England and Southeast Asia brought Resorts World Casino to New York.
MICHAEL SPELLER, PRESIDENT, RESORTS WORLD: This is a landmark decision for us to come into the United States.
ROTH: Thousands lined up in the cold on opening day.
UNIDENTIFIED FEMALE: But it's worth it. First one in New York, hey, if we have to wait two hours, we will be here.
ROTH: It took much longer for this casino to start rolling. Political squabble and scandal caused lengthy delays. The crowds feel the casino opened not a moment too soon.
UNIDENTIFIED FEMALE: We are happy.
ROTH: There is the random New York City reference, but once inside, gamblers could be anywhere. The casino is a long subway ride from Manhattan, but easy driving distance for millions of residents.
UNIDENTIFIED FEMALE: I hit it again. I'm so excited.
ROTH: The goal though is to bring another $500 million in taxes to the state by keeping customers and cash from going to Atlantic City, Vegas and other casino cities.
UNIDENTIFIED MALE: We intend to keep some of the New York gaming dollars that are leaking out of state right here in New York.
ROTH: At the same time, casino backers hope out-of-towners landing at the nearby airport will be tempted too.
DEAN MURRAY: So when people do come from out of state or even out of the country, right next door at JFK they land; they're looking for a place to have a good time.
ROTH: It's called a racino (ph) because it's next to Aqueduct Race Track where bets have been taken since 1894. Gambling success is not guaranteed in New York. OTB, the now shuttered off track horse betting operation was a giant failure. More effective agreements between the company and state may mean success.
CHARLES BRECHER: They've decided just to put these racinos near racetracks because it's more acceptable to have gambling where gambling already was.
ROTH: One problem, unlike Las Vegas, this place has only video machines for slots and other games.
This woman is nice, but she's a cyber roulette dealer. State law for now prohibits human Black Jack and Craps dealers.
UNIDENTIFIED MALE: He's an addict and I'm just a watcher.
ROTH: In a rough economy, gamblers will have to make sure that they don't lose money in a casino they so desperately waited for.
Richard Roth, CNN, New York.
(END VIDEOTAPE)
VELSHI: All right. Casino time.
COSTELLO: Let's go.
VELSHI: That will do it for us. We will be back here tomorrow morning bright and early, Carol will be on at 5:00 a.m. Eastern. We'll be here at 6:00 a.m.
Right now, it's over to Kyra Phillips in the "CNN NEWSROOM", good morning Kyra.
KYRA PHILLIPS, CNN ANCHOR, "CNN NEWSROOM": Good morning guys. Thanks so much.
