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CNN Saturday Morning News

Petraeus Resigns Over Sexual Affair; Questions Surround Petraeus Affair; Angry Over Long Power Outage; Colorado and Washington Say Yes to Marijuana; Message to Washington: Fix Economy; Seven Navy SEALs Disciplined; 52 Days Until The Fiscal Cliff; Florida Finishes Counting Ballots; Abe's Advice For Obama

Aired November 10, 2012 - 11:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

RANDI KAYE, CNN ANCHOR: Well, we have much more ahead in the next hour of CNN SATURDAY MORNING which starts right now.

From the CNN Center, this is CNN SATURDAY MORNING. Good morning, everyone. I'm Randi Kaye I'm glad you're with us.

Scandal in the CIA after a shocking revelation from the now former CIA Director David Petraeus rocks the intelligence community.

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UNIDENTIFIED FEMALE: I can't get anything for my kids, I can't get power, heat, garbage pickup?

(END VIDEO CLIP)

KAYE: Fury over the darkness that still plagues Sandy's victims. Who is to blame for the loss of power that has gone on nearly two weeks?

Malia and Sasha Obama have grown up a lot over the past four years right before our eyes, so what's it like growing up in the White House? We'll take a closer look.

But first, the abrupt resignation of CIA Director, David Petraeus and the extramarital affair that led him to step down. Petraeus acknowledged the affair in a letter to colleagues calling it unacceptable behavior for both a husband and CIA leader. And now CNN is learning more about the woman who may have been involved with the retired four-star general.

Intelligence correspondent Susan Kelly joins me now from Washington with some details. Susan, what do you know at this hour?

SUSAN KELLY, CNN INTELLIGENCE CORRESPONDENT: Hi Randi.

Right, a U.S. official tells CNN that the FBI was investigating a tip that David Petraeus was involved in an extramarital affair with Paula Broadwell. Now she is his biographer and Broadwell spent a year with Petraeus in Afghanistan interviewing him for the book she co-wrote about him.

CNN has not been able to reach Broadwell for comment and it's not clear whether Broadwell is the woman with whom Petraeus has admitted having an affair that led to his resignation on Friday as CIA director. Officials say the FBI counter intelligence unit investigated a tip to see if there was a potential security risk. Whether Petraeus could possibly be blackmailed?

The official tells CNN there was no suggestion that the FBI was investigating Petraeus for any possible wrong doing and the concern that was he could be in a vulnerable spot -- Randi.

KAYE: And Petraeus we know has been married to his wife Holly for -- for some 37 years, they have two grown children -- any indications Susan how long this affair might have been going on? And why he decided to resign now?

KELLY: No and the timing of it really leaves a lot to be answered. You know this happened a couple days after the election, an election which was a very tough one for the administration. And also, you know, Benghazi hearings are coming up next week, so Michael Morell, who is the agency's number two, who President Obama asked yesterday to step up and take on the acting director position, will be filling the sit and answering questions over what had happened there.

There's still really no idea though of how long this affair that the director has admitted to had been going on.

KAYE: Yes. What about the President? I mean he accepted Petraeus' resignation yesterday, this was a day after Petraeus had actually offered it. I mean do we know anything about, did the President agonize over this?

KELLY: Yes well we do know that the White House first found out about this on Wednesday, that he met -- that General Petraeus met with the President on Thursday and that he kind of gave him the details, I guess, of what he wanted to do, and that he thought the right thing would be to step down. And that the President did have a very tough time accepting the resignation, but that he thought about it overnight and then in a phone call on Friday, the President decided that he would go ahead and accepted the resignation.

KAYE: Certainly unique, don't you think for -- not only for him to resign, but to mention an affair, an extramarital affair in his resignation letter.

KELLY: It kind of puts a lot of painful details out there in the public. And you'd wonder why someone would do that and unless maybe you he did a coming clean and he feels like this is the right way to do it or there are going to be a lot more details that come out and he figure it may as well just make sense to get it all over with now.

KAYE: Yes.

KELLY: But they do think Randi that there is going to be more information coming out about this in the next week or so.

KAYE: Well, we will be relying on you for that Susan, thank you very much. KELLY: My pleasure thanks.

KAYE: It's unusual for a senior administration official to be so candid as I mentioned in his resignation letter about the reasons for stepping down.

CNN contributor and former CIA officer Robert Baer calls the letter extraordinary and he suggests the FBI investigation was about more than an extramarital affair.

(BEGIN VIDEO CLIP)

ROBERT BAER, CNN CONTRIBUTOR: But the idea that the FBI is investigating the CIA Director for a marital -- extramarital affair is just extraordinary, I have never seen happened and it smacks of George Orwell. It's more to do than with sex, there is something going on here which I can't explain and I think we're going to find out very soon.

(END VIDEO CLIP)

KAYE: Former colleagues of David Petraeus say they're not surprised he stepped down calling it the honorable thing to do.

Turning now to the recovery from super storm Sandy nearly two weeks after the storm, New Jersey Governor Chris Christie said that he expects nearly all the power will be restored statewide by tonight. He told reporters life will be back to normal for most of New Jersey come Sunday.

Some 151,000 households across New York are still without power and most of those outages are in Long Island and harder hit areas like of Queens, like the Rockaways.

CNN's Deb Feyerick reports people there are fed up and boy, do they want their power back now.

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UNIDENTIFIED FEMALE: Do you want to hear what I have to say or not?

DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): Anger frustration and despair as people demand to know why their neighborhood remains dark more than 12 days after Superstorm Sandy hit this boardwalk community.

UNIDENTIFIED FEMALE: I can't get light or anything for my kids. I can't get a power, heat, garbage pickup, nothing?

FEYERICK: Workers from the Long Island Power Authority know as LIPA are visible, but still can't seem to get the electricity back in homes in the flood zone.

New York's Governor has threatened to pull the company's operating license. GOV. ANDREW CUOMO (D), NEW YORK: We paid them and we gave them a franchise because they represented themselves as experts at doing this and they failed, and they should be held accountable for their failure.

UNIDENTIFIED MALE: I don't know you.

FEYERICK: At the Mt. Carmel Baptist Church next to a public housing complex, volunteers worked hard to serve hot meals and keep up moral. Many left before sunset, the trains are still not running this far out. One woman told us it feels like Martial Law here with people bolted inside their homes after dark.

JANNICK BROWN, QUEENS, NEW YORK RESIDENT: There is no power, no lights, you can barely see in front of you, it's difficult, you have a hard time, so you usually you try to get in before the sun goes down.

FEYERICK: Kenneth Gonzalez a registered nurse is now crammed into his living room one he now shares with three other people and a few belongings he could save.

KENNETH GONZALEZ, QUEENS, NEW YORK RESIDENT: If somebody comes in here with guns to take the little what I have left, what am I supposed to do? It's like Armageddon or something they -- they just forgot about us, you know. How are we to survive?

FEYERICK: Deborah Feyerick, CNN, Rockaway, New York.

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KAYE: The devastation left behind from Sandy brings back memories of Hurricane Katrina, so two community leaders in Slidell, Louisiana brainstormed on how they could help and they came up with the train of home. The Amtrak passenger line travelled from Slidell, Louisiana to Newark, New Jersey, it left yesterday carrying supplies like flashlights and batteries, and blankets and baby formula and food and some cold weather clothes, and it arrived in New Jersey today.

If you want to help storm victims in the northeast, it is so easy to do, just long on to CNN.com/impact. You'll find all kinds of information on how to contribute to that relief effort.

Now that Washington and Colorado have voted to make marijuana legal for recreational use, we'll tell you the legal impact it might have in those states.

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KAYE: Well, here's a sign of the times. Voters in two states -- Washington State and Colorado -- have voted to legalize marijuana, not for medical use but for recreational use. Yes, we're talking simply to get high. Here's reaction from the legalization camp in Colorado after the ballot initiative passed this week.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I am feeling amazing. This is the best day I've seen in my life.

UNIDENTIFIED MALE: Obviously it's always nice to be right. So -- but, you know, we're really happy. Most importantly, it's just wonderful that we're not going to see another 10,000 Coloradans arrested and made criminals in the coming years.

(END VIDEO CLIP)

KAYE: So let's bring in CNN legal contributor Paul Callan. Paul, good morning.

PAUL CALLAN, CNN LEGAL CONTRIBUTOR: Good morning Randi.

KAYE: A lot of folks talking about this one. Legally, this is a mess for the Justice Department because marijuana is still illegal, right, under federal law?

CALLAN: Oh, it most definitely is and I think Randi most people would be shocked to know that the Obama administration has been especially tough on legalized marijuana throughout the United States. Under federal law, it's a schedule one narcotic; it's on the same level as heroin. And for growing it, it's a felony. You can go to prison for many, many years. There are very, very tough federal laws despite the legalization efforts on the state level.

KAYE: So how does this all then affect America's war on drugs?

CALLAN: Well, you know, I think law enforcement people are extremely upset about this because they, of course, view marijuana as a gateway drug and they think it's going to encourage people to get involved with other drugs. That's always been the claim. The voters seem to be going in a very different direction.

So people are going to be getting mixed messages on this. I mean you have enormous numbers of medical marijuana dispensaries opening nationwide. And every time one opens, it's a violation of federal law so we really do eventually need a unified drug policy on marijuana.

KAYE: Yes. Some states certainly now, the two states where it's now legal, they're concerned they're going to see cartels moving in there. What kind of problems do you see local law enforcement in those states and even their neighbors having to deal with?

CALLAN: Well, first I think they need to hear a unified message from state authorities and federal authorities as to whether existing laws are going to be enforced. Governor Hickenlooper of Colorado said hold off on the Cheetos to his pot-smoking constituents because if the feds are going to come in and enforce the laws, people are going to be in trouble.

And they have an arsenal of laws. They can charge banks with money laundering if they loan money to an entity that sells marijuana. They can -- they can lock people up for growing it. They can seize assets. They can do all kinds of things.

So, you know, this thing is going to be a slow introduction nationwide, I think, if in fact we're going to see legalization.

KAYE: Some though, they see an upside here. I mean they're seeing maybe a multi-billion dollar industry in these two states and possibly a whole lot of tax revenue.

CALLAN: Well, you know, I think you're on to something there. And the talk that I've heard most recently from people is, hey, why don't you just legalize it and tax it. In California, for instance, I was looking at the stats. They think it's a $14 billion crop. It's the largest cash crop in California currently.

Now, if you take those figures and project them nationwide -- and by the way over 100 million Americans admit to having smoked marijuana at some point in their lives -- you start taxing this, it's going to be a massive source of revenue for state and local governments.

In the end, you know, that may be the strongest argument in these tough economic times --

(CROSSTALK)

KAYE: Yes.

CALLAN: -- to regulate it and tax it since it's being sold illegally in any event.

KAYE: So from a legal standpoint, I mean do you think this is the beginning of the end of illegal marijuana in the U.S.?

CALLAN: I do think this. We're now up to eight states that have legalized the drug. And I think you're going to see a trend toward many, many more. I do think, of course, we've got to get the federal government to get unified with the states on it, but you know, it's a -- how can the feds stop this? If one state after another state legalizes it, they just don't have the resources to shut it down.

(END VIDEO CLIP)

KAYE: That was CNN legal contributor Paul Callan. I spoke to him earlier this morning on the legal impact of legalizing marijuana for that recreational use in Colorado and Washington.

Many small business owners were badly hit during the recession. We'll tell you what they're now hoping the government will do about the economy.

And if you're leaving the house right now, take us with you. Just a reminder -- you can continue watching CNN from your mobile phone. You can also watch CNN live from your laptop. Just go to cnn.com/TV.

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KAYE: Americans voted on Election Day, and now they want their elected leaders to get to work. As we saw throughout the campaign, fixing the economy was issue number one for voters.

Tom Foreman reports.

(BEGIN VIDEOTAPE)

TOM FOREMAN, CNN CORRESPONDENT (voice-over): Just an hour outside of D.C., people in the small town of Washington, Virginia spent months waiting to see what the election would bring their way. And many, like cabinet-maker Peter Cramer, say they didn't much care about whether the Democrats or Republicans would win, just as long as the creeping economy starts racing again.

PETER CRAMER, CUSTOM FURNITURE MAKER: I'm saying, it's both of us --- and, yes, somebody fix it. Let's get some people in Washington who want to sit down and say let's solve the problem, and stop the gridlock.

FOREMAN: Next door at the Stonyman Gourmet Farmer's Cafe, Susan James spent the run up to the election feeling much the same way.

SUSAN JAMES, STONYMAN GOURMET FARMER: Certainly, the economy has changed the way we've conducted business. And it's changed decisions we've made. Major decisions.

FOREMAN: Instead of expanding her family-owned business, she kept a close eye on cost, steered clear of debt, and watched the electoral process play out.

(on camera): What is it that you most want to see from Washington, D.C.?

JAMES: Leadership and stepping up. The game of passing the buck, blaming the other guy, it sounds as if the way my brother and I used to fight when we were 7 years old. And people know, we don't want that.

FOREMAN (voice-over): It was that way all over town before the election. Many, like jewelry-maker Kaitlynn Mullan were unsure of what would happen with taxes, jobs --

KAITLYNN MULLAN, JEWELRY MAKER: I think a lot of people are just scared to commit a large amount of money to anything, whether it be a couple hundred dollars for custom jewelry or a home, you know. A lot of people are nervous.

FOREMAN: No one expects any quick fix for the economy.

JAMES: It's big, and it's going to take some time, and a lot of work. And it would be nice to get at it. .

FOREMAN: But they are more than ready to start building up again, just as soon as the other Washington settles down, and gets back to work.

Tom Foreman, CNN, Washington, Virginia.

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KAYE: A realistic video game has gotten some Navy SEALs in trouble. We'll tell you why they're being disciplined.

(COMMERCIAL BREAK)

KAYE: Welcome back. 23 minutes past the hour now.

Seven Navy SEALs are being disciplined for giving classified information to a video game company. The company used what they told them to make the "Medal of Honor, War Fighter" game, seem more realistic. Our Brian Todd has the details.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice-over): You're in their eyes as they sprint through dangerous terrain, dodge explosions, gun down their enemies. The new video game "Medal Of Honor, War Fighter" from Electronic Arts brags that it gives you the experience of fighting with SEAL Team Six.

It's given seven real members of that team the experience of losing half their pay for two months and likely their careers. At least one of those SEALs was on the raid that killed Osama Bin Laden last year.

A Navy official says the seven all active duty have been reprimanded for giving up classified information to the makers of the game when they worked as paid consultants.

(on camera): What do you think they gave up?

JOHN MCGUIRE, FORMER NAVY SEAL: Well, you know, I wasn't part of the game -- making the game, but I heard that they might have showed their equipment that they used. For some people that might not seem like a big deal, but you put a little piece information here together with another piece of information there and you can get some information to put people in harm's way.

TODD (voice-over): John McGuire is a former Navy SEAL who served 10 years. He says one big problem with what these SEALs did was that it was not authorized by their commanders. But the problems go beyond that.

(on camera): This episode adds more controversy over SEALs capitalizing on their reputation. John McGuire's got an outdoor fitness business based on his experience. He had to clear the name of that business 14 years ago with the Navy.

There was a recent movie, "Act Of Valor", featuring real active duty Navy SEALs; that was cleared by the Pentagon. But there was also a book written by a former SEAL who was on the Bin Laden raid, the Pentagon complained about that for revealing secret information. (voice-over): Plus, two controversial movies this fall detailing the covert Bin Laden raid. When news of those movies came out, one former SEAL said it was already too much publicity.

HARRY HUMPHRIES, FORMER NAVY SEAL: It's gotten out of hand. There's entirely too much being discussed about a community that lives on the fact that it's a group of folks that thrive on a concept called silent pride.

TODD: The SEALs lives are secret. Their identities classified. Still, one former SEAL disputes the notion that the video game gave much away. He says raids of militants' compounds have not suggested they use video games for intel.

CHRIS HEBEN, FORMER NAVY SEAL: We found a lot of porn, no video games. So this is not going to be used as a tool to aid al Qaeda and the Taliban in their terrorist agendas.

TODD: But the Pentagon is apparently determined to send a message to all the SEALs. These seven were disciplined in front of most members of their team, four others transferred to another unit and are still under investigation.

Brian Todd, CNN, Washington.

(END VIDEOTAPE)

KAYE: Falling off the fiscal cliff, how we can avoid that from happening, and what's really at stake if it does happen.

(COMMERCIAL BREAK)

KAYE: Fifty-two days until we cross over that fiscal cliff. Those $7 trillion in tax increases and spending cuts that could be triggered in January if Congress doesn't reach a deal.

President Obama made his first public comment since re-election on Friday addressing the issue and his commitment to compromise.

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BARACK OBAMA, PRESIDENT OF THE UNITED STATES: It's time to get back to work and there is plenty of work to do. I'm not wedded to every detail of my plan. I'm open to compromise. I'm open to new ideas. I'm committed to solving our fiscal challenges, but, I refuse to accept any approach that isn't balanced.

(END VIDEO CLIP)

KAYE: But Republican House Speaker John Boehner may not make the president's plan so easy.

(BEGIN VIDEO CLIP)

REP. JOHN BOEHNER (R-OH), HOUSE SPEAKER: I'm not suggesting we compromise on our principles, but I am suggesting that we commit ourselves to creating an atmosphere where we can seek common ground, where it exists, and seize it.

(END VIDEO CLIP)

KAYE: Joining us to discuss is Stephanie Ruhle, host of Bloomberg TV's "Market Maker." Stephanie, good morning. Let's stick with politics here for a moment. There are whispers now among some conservatives that Speaker Boehner may call the president's bluff, and maybe even should do so go right to the cliff, and see who makes the first move. What would happen in that case do you think?

STEPHANIE RUHLE, ANCHOR, BLOOMBERG TV "MARKET MAKERS": I mean, he may. Some are saying what if we fall after the cliff. Maybe long term it would be OK for the economy, but think about it.

If you jump off a cliff, maybe you learn you have the ability to fly, or maybe you plunge to your sudden death. If we do fall off that cliff -- I mean, what is that cliff?

Ben Bernanke coined the term it basically means taxes are going up, government spending is going to go down, and we could fall into a resection.

If you look at the way the market reacted on Wednesday following the election, the Dow dropped 300 points sort of saying suddenly, the market has to face this fiscal cliff, and if we do, it will be very bad for our economy.

Why, because we cannot grow and even though we have all of this stimulus in the system pumping money, if the economy can't grow, what does it say for our country? We're are just going to be in bad shape.

KAYE: So with the U.S. debt situation, though, I mean, do you think there is any way to get around these tax increases?

RUHLE: I mean, it's tough to say at this point, but if you look at the market reaction, it's almost shocking. The polls were saying Barack Obama was so likely to win, and suddenly, the market went up just before the election as the market was banking on Mitt Romney.

And when the Dow went down that much, the market is concerned. They have only have the ability to focus on one thing at a time, and when they start to feel like GDP is going to go down, people won't have disposable income to spend money, corporations will not be expanding, it's bad.

We need to increase jobs, and if we fall off the cliff and it's unclear how we are going to do that. Remember just weeks ago, a group of CEOS reached out to the president saying please address this fiscal cliff issue.

And it just hadn't been addressed, why? Because both sides had to focus on the campaign, they had to stay loyal to the extremes in their parties.

And now that the election is over, we could see the president reach across the aisle, we could see Boehner do the same and that's what the country needs because for the president, he needs to start focusing on his legacy and not just winning an election.

KAYE: Yes, and that's what a lot of people are hoping to see is some type of compromise here. The CBO though, the report show that there is some upside to letting those cuts expire actually.

Unemployment at 5.5 percent they say by 2020. So do you think -- I mean, is it possibly worth the short-term pain for that long-term gain even if we do see unemployment at 9.1 percent, which is what the CBO says we'd see initially. But then we would see it go down to 5.5.

RUHLE: Possibly, but look at the company and look how individuals respond. People don't look long term, they want immediate results. They want to be pleased today. They want a job today so they can go to the mall tomorrow and buy a pair of jeans. The elect political officials will please them today.

People want $100 today. They don't want to save it so they can have $1,000 in five years. And even if long term, it could be the right decision. It's just not how we see politics and economics play out right now.

RUHLE: And who is going to get hit the hardest if we do go off this cliff?

RUHLE: I mean, unclear. Right now, it feels like everyone. If you look at the markets, they will say the markets get hit the hardest, corporations get hit the hardest, and if corporations get hit then individuals do because people won't have jobs.

They are not going to be out there spending, and if there are massive government spending cuts that is going to hit individuals, not just defense spending. We need the country growing. We need the county moving.

Not just in the U.S., but that's the case in Europe. So even if you have central banks intervening, pumping money into the system, this is false stimulus. It's not organic and we need growth.

KAYE: Stephanie Ruhle, thank you so much for coming on this morning. We appreciate you helping us all make sense of that, thank you.

Almost a week after the election, Florida is finally finished counting its presidential ballots. State election officials should have the final tally of the presidential race in the next 30 minutes or so.

Nick Valencia is here to tell us a little bit more about that. So they are finally done counting.

NICK VALENCIA, CNN CORRESPONDENT: They're finally done. A handful of days, it matters to some people closely monitoring the race, but we do know, Randi, that all 67 counties in Florida by noon today, according to the Department of State has told them they need to submit their unofficial-official results.

So we'll have an answer today. It seems as though most of the votes that haven't been counted though come from Democratic, heavy Democratic areas. So it seems that President Barack Obama will just seemingly pad to his re-election victory getting those 29 -- those crucial 29 swing state electoral votes.

KAYE: The votes matter. It won't change the results, but of course, the votes.

VALENCIA: You know, divine interview or maybe a miracle, but it seems that these electoral votes will go towards the president. So we will have the results as soon as they come out in the 12:00 hour, stick around for that.

KAYE: OK, we will have them for you on CNN. Nick, thank you very much.

Turning now to the recovery from superstorm Sandy, nearly two weeks after the storm, New Jersey Governor Chris Christie said that he expects nearly all the power to be restored statewide by tonight.

Christie's comments came after he toured the Jersey Shore where superstorm Sandy destroyed homes and businesses. He said this is our Katrina.

People all over the world celebrating Malala day. We'll tell you how this brave Pakistani girl is doing after being shot by the Taliban.

(COMMERCIAL BREAK)

KAYE: Welcome back. Just about 20 minutes before the hour now, the United Nations has declared today Malala day. The U.N. is honoring the Pakistani girl shot in the head by the Taliban for speaking up for girls' rights to education.

Malala Yousufzai is recovering at a British hospital. Dan Rivers has the details.

(BEGIN VIDEOTAPE)

DAN RIVERS, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): It is staggering to see Malala Yousefzai out of bed with her father, looking through some of the thousands of get well cards she had received.

It's exactly a month since she was shot at point-blank range by Taliban gunman for her campaign for girls' education in Pakistan. Despite the bullet passing through had her head and neck, she is able to talk.

Doctors at Birmingham's Queen Elizabeth Hospital in Britain are still assessing the extent of the brain damage. Her only visitor so far was being her immediate family.

ZIAUDDIN YOUSUFZAI, MALALA YOUSUFZAI'S FATHER: I'm awfully thankful to all of peace loving well wishers of Malala Yousufzai who strongly condemn the assassination attempt on Malala, who pray for her health, and who support the great cause of Malala Yousufzai that is peace, education, freedom of thought, and freedom of expression.

RIVERS: The cards have come from all over the world. This one from Myanmar, Burma, some are signed by entire households, some by entire offices. Her story has touched people around the world.

There is now an internet campaign for Malala to win the Noble Peace Prize. She is yet to undergo surgery on her skull and jaw in Britain. But judging by these pictures, she is in very good hands, surprising everyone with her determination to recover. Dan Rivers, CNN, London.

(END VIDEOTAPE)

KAYE: Former British Prime Minister Gordon Brown is heading the "I am Malala campaign" as the new U.N. special envoy on global education. He is touring Pakistan this weekend to boost education, and it was his office that declared today Malala day.

Four more years, and we don't mean President Obama. We mean the two young ladies who live at 1600 Pennsylvania Avenue. What's it like growing up in the White House. We'll tell you.

But first, if you're visiting other cities and you want to fit in and feel like you belong, what's the best way to do this, through food, perhaps.

CNN I-Report is teaming up with "Travel and Leisure" magazine to create a list of 100 places to eat like local and your recommendation will play a very big part. Here is a sample.

(BEGIN VIDEOTAPE)

JIM SPELLMAN, CNN CORRESPONDENT: It's a damp, chilly morning in Denver, Colorado. We're going to try to warm up at the Denver Biscuit Pump. Just a few years ago, this was really just a bar, people came here to drink at night time and now there are highchairs and kids in here.

UNIDENTIFIED MALE: Yes, it was a big question of whether people would come into a drinking place to eat breakfast, and I think that's a testament to our food. Should we head into the kitchen?

SPELLMAN: Sure, absolutely. That is a serious rolling pin.

UNIDENTIFIED MALE: Stainless steel. That's all right. You better do this.

SPELLMAN: OK, we must pause for the obligatory Twitter photo.

UNIDENTIFIED MALE: Yes, for sure.

SPELLMAN: All right, I'm going to start with the Franklin, you start with one of those, and then we'll switch.

UNIDENTIFIED MALE: Definitely.

SPELLMAN: My God, it's so good. It's ridiculous. The biscuits at the Denver Biscuit Company are so good. They're amazing. We have to take a box with us. Thank you.

(END VIDEOTAPE)

KAYE: Boy did that look good, but Jim Spellman there did not send us any of those biscuits. So I'll be coming after you for that one. I- Reporters here is your chance to help us create a food lovers math of the world. Go to ireport.com/100place, send us a photo of your favorite restaurant and your dish, why it's special and how you discover this place. The definite list of 100 places to eat like a logo will be revealed in March 2013. So stay tuned if yours makes that list.

(COMMERCIAL BREAK)

KAYE: Malia and Sasha Obama have grown up a lot over the past four years. Most of it out of the public eye, but on election night, young Sasha demonstrated she too may have a future in politics.

You see what happened there, the crowd in McCormick Place in Chicago went wild when she reminded her father to acknowledge the hundreds of voters sitting behind the stage and behind them.

You can't teach that kind of savvy. As the Obama daughters now begin another four years in the White House, we want to take a closer look at their lives are like and how they compare with other first children.

(BEGIN VIDEOTAPE)

KAYE (voice-over): They may be growing up in the White House, but to Sasha, 11 and Malia now 14, Mr. President is simply daddy, and on election night, their daddy sounded so proud.

PRESIDENT OBAMA: Sasha and Malia, before our very eyes, you're growing up to become two strong, smart, beautiful young women, just like your mom. And I'm so proud of you guys, but I will say that for now, one dog is probably enough.

KAYE: Hard to believe it's been more than four years since we were first introduced to the Obama girls. Remember this precious moment at the 2008 Democratic Convention?

SASHA OBAMA: Daddy, what city are you in?

KAYE: Their parents for the most part keep them out of the spotlight, but on stage on election night, they were beaming, and boy, have they grown. Doug Wead has written about presidential families for more than two decades, and interviewed 19 presidential children.

DOUG WEAD, PRESIDENTIAL HISTORIAN: The most successful presidential children in history have been children who were kept out of the limelight during their father's presidency.

This was a study that Jacqueline Kennedy made and concluded the Obamas have subscribed to that and historically this has proven to be the wisest form of presidential parenting.

KAYE: While we haven't heard much directly from the two girls over the years, their parents share quite a bit about them. Listen to what the president told ABC's Robin Roberts about his daughters last year.

PRESIDENT OBAMA: They're smart, they're funny, but most importantly, they are kind. They're respectful. They're responsible. They're well behaved. I could not have asked for better kids.

I should also point out that I have men with guns that surround them often. And a great incentive for running for re-election is that it means they never get in a car with a boy who had a beer.

KAYE: Malia who will be 18 by the time her father's second term ends, is already asking about her driver's license. The president has said he'll allow it. But other things are simply against the rules as Mr. Obama recently told the ladies of "The View."

PRESIDENT OBAMA: First of all, Malia didn't get a phone until last year. They don't have Facebook page. You know, part of that, obviously, is for security for us. We don't let them watch TV or use their computer except to do home work during the week.

KAYE: The president was asked on MTV how he feels about Malia soon dating.

PRESIDENT OBAMA: Dates, that's fine. She's, you know, she has Secret Service protection.

KAYE: The goal in this White House seems to be normalcy. The president tries to be home for family dinner most days and even helped coach Sasha's basketball team. And this past summer both girls went away to sleep away camp.

Of course, the Secret Service went with them. Even living in the White House, though, doesn't mean the girls get a free pass. They still make their beds and Malia does her own laundry.

Lots of pressure comes along with being the president's daughter. Michelle Obama shared this story with Jimmy Kimmel.

MICHELLE OBAMA, FIRST LADY: That was the instruction before he gave the speech at the DNC. We're backstage and they're playing around and laughing and giggling. He said just act like you're listening to me. So the whole time I'm clapping and looking over at them and I'm like smile. Smile. They're like, OK.

KAYE: Sasha and Malia seem to be handling the spotlight just fine, but it wasn't so easy for those before them. George W. Bush's daughter, Jenna, was arrested for having alcohol as a minor.

Months later, she was charged with using a fake id to purchase alcohol. And then there's Chelsea Clinton whose father was impeached following his affair with Monica Lewinsky.

WEAD: The greatest memory of Chelsea Clinton is that scene of her walking across the lawn and taking her father's hand and her mother's hand and literally holding that marriage together.

KAYE: So much history at 1600 Pennsylvania Avenue. Now Sasha and Malia's early years firmly part of it.

(END VIDEOTAPE)

KAYE: Not so easy growing up inside that fishbowl. But clearly, Malia and Sasha seem to be handling it pretty well.

"CNN NEWSROOM" starts at the top of the hour. Susan Hendricks is here for Fred today. How are you doing?

SUSAN HENDRICKS, CNN CORRESPONDENT: Hi, Randi. Great to see you. We're talking about, of course, the fallout from Petraeus and the fallout for the president and his administration. It's what everyone talking about.

And people are saying this is a huge loss for our country and still so many questions around it. Also, the legal guys are back as they always are. They'll be tackling everything from marijuana, legal now as you know in Colorado and Washington, to drug sniffing dogs. Should that hold up in court?

And also, criminally offensive tweets, during Sandy, there were tweets out there that were just false. So is that against the law or is it freedom of speech? It's morally wrong, I believe. The legal guys are going to tackle that.

KAYE: It will be an interesting discussion.

HENDRICKS: This is exciting. James Bond new movie coming out "Sky Fall." We're excited about that. Also, we're going to talk about various trips that can you take in a kind of a James Bond way, where he would go, destination vacations.

KAYE: On your tab or someone else's?

HENDRICKS: I think it's on your tab. The cars don't come with it. And we're going to see amazing pictures from Mars and really the brains behind that. So it's going to be an exciting show today.

KAYE: Yes, it should be. We'll be tuning in as well. I think you're going to get the Florida vote too at some point.

HENDRICKS: Yes, we are. We're hoping. No hanging chads this year, right?

KAYE: That's good news. All right, we'll check back with you in just a moment.

HENDRICKS: Thanks.

KAYE: Steven Spielberg's new movie "Lincoln" opens this weekend. Find out what critical lessons President Obama might learn from that film.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I heard and update from Con Ed, the electricity company. They say the Republicans now will be without power for the next four years.

UNIDENTIFIED MALE: Speaking of Mitt Romney, now that he is out of the presidential race, he will no longer receive protection from the Secret Service or as Big Bird put it, was up?

UNIDENTIFIED MALE: Listen, you all know who David Petraeus is, right, probably our greatest general. He loses his job, career, reputation, all over an affair. So, guys, let that be a lesson to you.

As CIA director who has access to phoney passports, elaborate disguises, has safe houses all over the world, if he can't keep an affair secret, you're screwed, OK? You don't have a chance. You don't have a chance!

(END CLIP)

KAYE: President Obama is facing a big challenge in the weeks ahead. I'm talking about the fiscal cliff. Those drastic spending cuts and tax hikes that kick in if President Obama and Congress don't strike a budget deal by the end of the year.

Tom Foreman reports the president could get some pointers from a former president who was also a master negotiator, Abraham Lincoln.

(BEGIN VIDEOTAPE)

TOM FOREMAN, CNN CORRESPONDENT (voice-over): For those looking for inspiration in these troubled times, the new movie "Lincoln" may be just what the director ordered by all accounts, a mix of personal and political wisdom.

UNIDENTIFIED MALE: It is self-evident truth of things, which are equal to the same thing are equal to each other.

FOREMAN: At the White House, President Obama has long admired the 16th president. He took the oath on the same bible Lincoln used. He stopped by the Lincoln Memorial. He often reads about Lincoln and he's quite fond of quoting the real splitter.

PRESIDENT OBAMA: I'm far more mindful of my own failings knowing exactly what Lincoln meant when he said I have been driven to my knees many times by the overwhelming conviction that I had no place else to go.

FOREMAN: So what lessons might Lincoln have for this president's second term? Considering he's one of the most well researched figures in American history, plenty.

At Illinois Wesley University, Robert Bray is one of the nation's top Lincoln scholars. He said Lincoln's first advice might be make your enemies into friends. Bray says Lincoln was able to keep his eyes on the prize, which means he was able to dissociate himself from personal attacks.

Second, be firm but play nice. Lincoln could talk without anger, even to his political opponents. And third, take the long view. Bray says Lincoln firmly believes that if Americans put their heads together and put their will to it, they can be a shining example of equality for the whole world. Of course, will is much more. The folks at Ford's Theater where he was assassinated say more than 15,000 books have been written on Lincoln's life and lore, enough to build this 34-foot tower and allowing aid to offer advice across the centuries, honestly. Tom foreman, CNN, Washington.

(END VIDEOTAPE)

KAYE: I definitely want to see that movie.

HENDRICKS: It's astonishing how much the actor looks like Abe Lincoln.

KAYE: He looks fantastic. "CNN NEWSROOM" continues with Susan Hendricks today filling in for Fredricka Whitfield.

HENDRICKS: Randi, thanks. Great to see you.

KAYE: Have a great day.