Transcripts For CNNW American Morning 20111026

first shook. we're live in turkey with the latest. and i'm carol costello. president obama about to unveil a new plan to help young americans go to college without going broke. details on the president's proposal on this "american morning." -- captions by vitac -- www.vitac.com all right. good morning, everybody. it is wednesday, october 26th, and welcome to "american morning" this morning. >> buying car? >> so sorry for carter evans. i'm going to find out what the number one car was. >> we have commercial breaks here. e-mail. paper. any tough questions for me? write them down before you ask them to me on tv. how's that? >> what's the meaning of life? >> we'll get to that one. a busy morning for you. up first, new clashes overnight between police in oakland, california, and occupy wall street protester. police in riot gear using tear gas on the crowds in oakland's city hall plaza. look at pictures. fascinating. some protesters throwing paint at the cop. dozens arrested despite warns from police. the protesters returned to city hall last night where they've been camped out a couple of week. dan simon live in oakland. have things settled down behind you now? >> reporter: a little bit pup can still see some police in riot gear behind me. this is the line in the sand. a few protesters in front holding a sign. things really got ugly about 7:00 last night. this is some hours after police had disband the group of protesters who had camped out in front of city hall. they were there for about two weeks. things were pretty much peaceful during that period, and then police saw the situation deteriorating in terms of a public safety threat. they saw health conditions getting bad. so they decided to get rid of those protesters, to tell in to disband, and then a few hours later, after they had left, about 500 of them decided to take their space back. they wanted to get back in front of city hall, and that's when they confronted this group of police who were in riot gear. they unleashed tear gas. it was just a scene of pandemonium for about an hour. things seemed to calm down and then yet again, more protesters clashing with police overnight. and now the situation, ali, has calmed down a bit, but still a bit fragile. also sort of this haze of tear gas still in the air. we can feel it. our crews can feel it, but right now things seem to be calming down a bit, ali. >> remarkable pictures. trying to get a sense the fact they were done at night, maybe the lighting made that look at dramatic as it did, but it seems like there were some very tense moments nap looked very, very serious for a while? >> reporter: it was very serious. it gives you the sense of the anger that these people are feeling. people who have been here for two weeks. maybe some of them are tired, but anger on both sides. police had one of these protesters, asked them to disband several days ago, but they were there. so they came up way plan to send police to disband them. they thought they had basically put an end to it, but these protesters, very determined. you saw last night. >> dan simon, thanks very much. we'll stay on top of this story with you and across the country where many of these demonstrations continue. police and occupied protesters also clashing in atlanta. demonstrators arrested overnight after the city's mayor ordered police to clear them out of the park, home of the occupy atlanta movement. the beat goes on in new york city where it all began. complaints from residents about this noise, drumming. agreed to limit drumming to simply four hours a day. dug-in protesters only drumming between 12:00 p.m. to 2:00 p.m. and then again from 4:00 to 6:00 p.m. >> and in cases, education, you're paying for it. today president obama will bypass congress and announce new executive actions to help ease the burden of student loans. brianna keilar is live at the white house. brianna, this is supposed to help with the crushing cost the college education. something they attempted to health care reform. the congress actually passed. now the president wants to move up the day all that was supposed to start. tell us about that. >> reporter: what it does, speeds up changes to a program, an income-based college loan repayment program, that is already in place. those changes were supposed to take effect in 2014. this plan that the president will be trumpeting today at the university of colorado, that will -- those changes will now take effect in 2012. so what does it do? well, it would reduce the amount of money, of the monthly payment that student has to pay. the 10% of their income. reducing it to 10% from 15%. and then after 20 years of repaying a loan, that debt would be forgiven. so that this wouldn't go on for decades and decades. the other part of this plan is that there are some students who have different kinds of federal loans. they have two or more kinds of federal loans, this would allow them to consolidate this for a slightly lower interest rate and, again, this is going to affect students who would be graduating next year, meaning the current class in place. this would affect the class of 2012. they would see these changes, whereas before, it was supposed to be the class of 2014 that would be seeing these changes. i should mention, say, like, a student sun employed, they wouldn't then have a monthly payment. as you can imagine, would help a lot of students at risk of default on student loans. >> your monthly payments would be 10% of your pay. you know? after 20 years now, you would -- if you hadn't paid it off in 20 years it would just go away. also, if you work in, like a nonprofit or in public service, your loans can be repaid over ten years. tell us about the executive authority the president used for this plan. because congress basically passed it a couple years ago. this moves it forward. he needed an executive order to do that. >> reporter: that's right. wa you're see, this isn't just one effort we've seen by the white house lately. the president is on his three-day western swing and also announced changes for housing. for folks who are under water on their loans. the theme of the president's push here is, we can't wait. the idea is that congress is stymied, they aren't able to do things to help the economy. so there's no doubt a political message here that he's stepping in, taking executive authority, and he's doing what he says congress cannot do. you're going to hear him say this today as he has throughout the trip. this idea of, we can't wait. expect to hear it again for sure. >> brianna keilar, thank so much. this doesn't put to rest the prices of tuition prices. tuition up another 5.4%. the without wants to help pay for it doesn't mean tuition is going down anytime soon. coming up at 8:00, the student loan relief program with education secretary arne duncan and we'll ask him about tuition. it keeps going up. difficult for families to afford it. this is to help you repay it you but what's going on with tuition? >> those who think it's a bubble. like a housing bubble,s it has to pop. >> again, what do you do to bring down the cost of a college education? >> help you pay for it back, but i don't know. i think people have to do something. i think people have to start going to community college, and health care reform, more funding for community college, by the way. have to go to community colleges, state schools. putting the pressure on with your own wallet. people can't afford this. they really can't. income based or no, it's very expensive to go to college. >> and it's true. an interesting conversation with arne duncan. ed president carved out some time, i should say, with jay leno during his swing to colorado, nevada and california. here's a clip of that. >> please welcome the 44th president of the united states, president barack obama. >> president obama making his fourth appearance on "the tonight show" last night and his second as president. he told leno he shares the frustration of americans fed up with politicians putting their party ahead of their country, and when it comes to serving a second term, the president did not seem too concerned about the competition. >> have you been watching the gop debates? >> i'm going to wait until everybody's voted off the island. before -- [ cheers and applause ] once it's down to one or two, i'll start paying attention. >> maybe the president should start focusing on herman cain. he continues to come on strong. cain has taken a lot of criticism for comments about abortion and immigration. it does not seem to be hurting him in his standing with republican voters. the georgia businessman is coming out on top if the latest cbs "new york times" poll. check out the numbers. picking up 25% of the vote, four points ahead of mitt romney. newt beginning rir and ron paul, and rick perry slipped, not just to fifth place but a distant fifth place in this new poll, but hard to know. a lot of polls coming out. this one is decidedly unusual. >> came out with his flat tax plan just yesterday. maybe the numbers will change for him. we don't know. >> yeah. a dramatic rescue giving new hope to all those praying for missing loved ones in turkey this morning. you're looking at video from earlier today. a rescuer saving a 27-year-old woman from the wreckage. that rescue, 66 hours after sunday's earthquake that killed more than 450 people now. rescuers res kied a 28-year-old. taken to a field hospital. >> amazing. you know, the only things you hope for after an earthquake. >> the story of the 2-week-old baby, her mother and grandmother all pulled out alive. so wonderful in such stratraged coming up next, high unemployment, a housing crisis. why should you care about what is happening an ocean away in europe? i'll tell you very specifically when we come back. texas governor rick perry is going after mitt romney's wealth calling him a fat cat. so we want to know. can politicians relate to ordinary americans? we want to know. that's the "talk back" question of the morning. it's 11 past the hour. ♪ quaker oatmeal is a super grain. ♪ it gives me warmth. ♪ [ boy ] it gives me energy to help me be my best. quaker oatmeal has whole grains for heart health. and it has fiber that helps fill me up. ♪ [ male announcer ] great days start with quaker oatmeal. energy. fiber. heart health. quaker oatmeal. a super grain breakfast. delivering mail, medicine and packages. yet they're closing thousands of offices, slashing service, and want to lay off over 100,000 workers. the postal service is recording financial losses, but not for reasons you might think. the problem ? a burden no other agency or company bears. a 2006 law that drains 5 billion a year from post-office revenue while the postal service is forced to overpay billions more into federal accounts. congress created this problem, and congress can fix it. we asked total strangers to watch it for us. thank you so much, i appreciate it, i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money ? 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[ male announcer ] we're not employers or employees. not white collar or blue collar or no collars. we are business in america. and every day we awake to the same challenges. but at prudential we're helping companies everywhere find new solutions to manage risk, capital and employee benefits, so american business can get on with business. ♪ [♪...] >> announcer: now get a $250 airfare credit, plus save up to 65%. call 1-800-sandals. certain restrictions apply. rajaratnam. welcome back. as we speak, european leaders are trying again to hammer out a plan to fix the region's growing debt problems, but there are doubts that they'll be able to get a deal done in time. in time for what is the big question. it's already too late for some of these regions. ta could have major implications right here in the united states, and the state of the u.s. economy. joining me now to talk about it is ian bremmer, the president and founder of the eurasia group. good to see you. >> good to be here. >> there are meetings going on. another big meeting expected to happen today, and every day, every time we have these meeting, four major ones this week, we're hoping to emerge with something that is a solid plan that's going to be adopted by the 17 countries that use the euro, the 22 in the eurozone, and every time we do this we fall short a little bit. >> that's right. and that is the intentional strategy. right? the germans and french, those with money. >> the strong countries. >> they understand that the only way they're ever going to fix the institutions and get the greeks and the portuguese an spaniards to be responsibly economically is experience real pain. they're muddling through and using the market as a stick to beat these guys. you have to create a serious level of crisis to actually change things. the united states doesn't have that. >> we've been watching. one thing most american are familiar with are the scenes in the streets of athens. every time the government does something that is going to impose that pain, that the french and the germans say is necessary before greece gets a bailout, people take to the streets. >> in greece, first of all, demonstrations are a bit of a sport. communists about 8% of the parliament. i've been in parliament well before the crisis demonstrators or labor unions. in greece, they go to the streets, in portugal, the beach. the greeks want to avoid the pain, germans want to inject the pain. chicken going on between the two to make sure the compromise is somewhere in the middle. >> culturally what are the differences. some say europe is going through what america is going through. it's really a different thing. >> very different thing. in the united states unless we have a serious and imposed crisis congress is in gridlock, but the gridlock gets broken through in a crisis and we forget. when we have a government near shutdown, we forget. about to have the super committee. $1.2 trillion. i'm sure we'll work out something at the last ninminute and then we'll forget it. in europe, the crisis is severe and they are going to change the institutions. the institutions need to change not to create fiscal union and harmony but to stot letting everyone have a vote at the table [ bleep ] i was a kid, you have a kids' table and then an adult table. the kids table you don't have sharp utensils and don't get to the adult's table until you're allowed. in europe, 17 parliaments all eating with the same thing. >> slovakia holding things up because they want particular things for think tiny economy? >> and finland, malta, you mean they should have all the same voting rights and privileges as germans? ed germans aren't giving up fiscal autonomy but the greeks need to. you need to alter them so that the voting rights, the weight of responsibility actually is borne by the people with money. >> here in america, europe as a whole is an economy as large as america's. >> that's right. >> i don't think anybody particularly care about the summit today or the three meetings before it this week. next week, g-20. >> americans should be worried about a banking crises. the potential that in france, for example, you'll have insolvency, panic and a crisis that could create contagion. a lot of banks, jpmorgan, goldman sachs, trading down because they have a lot of exposure to european banks. truly a transmission mechanism. >> would it be another lehman? >> in the worst case, of course, it could be another lehman nap is what banks are panicking about now, and what viewers should worry about. longer term, looking for the europeans putting the building blocks together to allow the european institutions to function more strongly. europe has institutions stronger today than a few years ago. germans as leaders are stronger today than a few years ago. i expect that's going to continue, but it requires pain to get there. >> good to talk to you. president and founder of the eurasia group. carol? now's your chance to "talk back" on one of the big questions of the day. the question -- can rich politicians relate to ordinary americans? rick perry thins not. on cnbc, perry went there to describe mitt romney. >> i would say they ought to look in the mirror, i guess. i consider him to be a fat cat. >> did you hear it? perry called romney a fat cat. that term is toxic these days. a cnn/orc poll proves that. the vast majority of americans think wall street bankers are greedy and yoesh paid. although he's not a banker he's as rich as one. worth up to $ 50 million. something perry points out and liberals, too. check out the cover of "new york" magazine. money bursting from his suit jacket. hold on. just because a guy is rich doesn't mean he's heartless. romney says his business savvy can create what working americans need the most. >> for me, one of the key criterias, criteria in looking at tax policy is to make sure that we help the people that need the help most, and in our country, the people who need the help most are not the poor, who have a safety net. not the rich, doing just fine, but the middle class. >> romney's opponents disagree, and the left and the right hope that toxic term you know, "fat cat" will stick on mitt romney like glue. the "talk back" question for you this morning -- can rich politicians relate to ordinary americans? facebook.com/americanmorning. facebook.com/americanmorning. i'd read your responses later this hour. so my question is, can you become a politician at that level in this country, a viable one, without being rich? >> here's the difference, and i thought a lot about this. i think that many americans don't mind wealthy americans that become wealthy through hard work. started out with modest means and made themselves. like steve jobs. right? mitt romney, he's had a lot of inherited wealth. some americans kind of -- >> are suspicious about that. >> suspicious of that. how can you possibly know how the other half lives when you have never lived that way. >> interesting to see the response. up next, ga doffsy gone. a reason to celebrate for the libyan people. leer in america, the battle is begins for hundreds of the victim. alina cho with a special in depthth repo depth report. you're watching "american morning." ♪ ♪ ♪ [ male announcer ] the peace of mind of owning a 2011 iihs top safety pick. the all-new volkswagen passat. welcome back. "minding your business" this morning. right now u.s. stock futures are trading higher. you know markets took a big hit yesterday. the dow dropped 1.7% on, you guessed it, fears about europe's debt kicking up towards the end of the trading session. today is the day investors are waiting for on that front. all 27 leaders at the eu will meet in brussels to come up with a grand plan to save the european union and euro. the big question, how much of the debt burden from faltering countries like greece will be transferred to europe's largest banks? details of that plan expected to be announced this afternoon. former goldman sachs director raja gupta is expected to turn himself in this after and fade federal charges relating to the insider trading trial of hedge fund founder raj rajaratnam. and taking a beating after announcing third quarter earnings and missed estimates. the stock is down, wow, 10% in pre-market trading. down because of invests in expansion including opening new warehouses and launching the new kindle fire line. what's the new gift for christmas? a tablet computer. the top choice for a gadget. get this. tablet computers actually beat out peace, happiness and money this year. this on people's wish lists. you can make peace, happy and money out of a kindle. i don't know. a tv that can do everything. steve jobs talked about it in his just released authorize the autobiography saying, i finally cracked it. "american morning" will be right back after this break. i have to be a tree in the school play. good. you like trees. well, i like climbing them, but i've never been one. good point. ( captain ) this is your captain speaking. annie gets to be the princess. oh... but she has to kiss a boy. and he's dressed up like a big green frog ! ewww. ( announcer ) fly without putting your life on pause. be yourself nonstop. american airlines. [ woman on radio, indistinct ] ♪ bum-bum ♪ bum-bum, bum-bum, bum-bum ♪ ♪ ai, ai, ai ♪ bum-bum ♪ bum-bum, bum-bum ♪ [ ice rattles rhythmically ] ♪ [ imitates guitar noise ] the redesigned, 8-passenger pilot. smarter thinking. from honda. welcomes back to "american morning." we're about to cross the half hour. let me bring you top stories. new clashes in oakland, california, between police and occupy wall street protestors. police spraying tear gas on demonstrators after they were hit with paint and other objects. the crowd, look at this -- look at this -- a crowd of about 500 people tried to retake their encampment after being kicked out earlier yesterday. more reports of amazing rescues at the site of the devastating earthquake in turkey. hours ago crews reportedly rescued a 27-year-old woman from a building, 66 hours after an earthquake demolished the eastern part of the country killing more than 400 people. and president obama about it announce the plan to help college graduates drowning in debt. consolidating federal loans and reduce interest rates. and during lis 42-reign of terror, spilling the blood of hundreds of americans, moammar gadhafi. now that he's gone, they're dancing in the streets of tripoli. a battle won there. a hope for a better tomorrow. >> but for victims of libyan-sponsored terrorism living here in the united states, the fight is just beginning. cnn's alina cho with a special "in-depth" report this morning. >> good morning. you rememberlockerbie, the berlin discotheque bombing? nine attacks sponsored by libya. the u.s. government under president george w. bush made a deal with the libyans. gadhafi agreed to give up $.5 billion to compensate u.s. victims of libyans state-sponsored terrorism. in exchange, those victims who filed lawsuits against libya agreed to drop their claims. at the time it seemed like a pretty good deal, but now some are calling this a deal with the devil. >> reporter: these victims came to us with their stories of horror. >> i saw people dying. >> my kids ask about him a lot. and -- >> i look at my hand. i have skin and blood. >> reporter: maria diaz was just 15 when she and her aunt were caught in the crossfire in the 1972 airport attack in tel aviv. diaz was hit with a grenade. her aunt, just 6 years older, 21, and newly engaged, was killed. >> i would have given anything -- for that to happen to me, not to her. >> reporter: after all these years, this is diaz' first tv interview. >> four minutes, and it changed my whole life. >> reporter: in the nearly 40 years since, diaz still has pain in her legs endured eight surgeries and a has not seen a penny of the money the u.s. government promised she would get. money that's supposed to be taken from a $1.5 billion fund set up to compensate victims of libyan-sponsored terrorism. instead, what diaz got was this letter from the u.s. treasury department saying she would eventually get a pro-rated payment. 20% of what she is due. >> reporter: how much of the money have you seen? >> at this point, i haven't seen any. >> reporter: the problem, say these victims, is that the government miscalculated, and that there's not enough money left in the compensation fund for more than 200 victims. an estimated shortfall of $350 million. the state department says it's too early to say there will be any shortfall. the state department would not go on camera but told cnn "it is premature to determine that there will be a shortage of settlement funds. roughly half the claims are still being processed." some of the money was distributed to some of the victims. >> lockerbie, and at the time as you probably recall were the attacks that most people knew about. >> reporter: the most high-profile. >> the most high-profile attacks. there were a lot of attacks people don't recall. >> reporter: the one jonathan was injured at the rome airport in 1985. >> if you were injured, you were entitled to $3 million. if you were killed, $10 million. your family, of course, for wrongful death. >> reporter: so you thought, okay. eventually i'll get this money. >> i did. >> reporter: he received $600,000, but it's 20% of what he's owed. >> it's insulting to say you'll get a pro-rated amount now and not guaranteeing that you'll get the whole amount later is insulting. >> reporter: neither were among those who sued libya for damages, but they are entitled to claims from the same fund under a law congress passed to cover victims of state-sponsored terrorism. >> we did fight in federal court. >> reporter: alex was a litigant in the historic case that led to the u.s.-libyan agreement to compensate victims. he lost his father when this flight exploded over the african desert in september 1989. >> the u.s. government, they didn't do their homework and were rushing to make a deal with the devil. the amount of the money is not really the issue. it's really about justice. >> now, what is interesting about this case is that the victims say there is actually a very easy solution. senator charles schumer and others told us there's $32 billion in frozen libyan assets and a small percentage, about 1% of that money, should go to these victims. the problem is -- >> see, it's not easy. i was going to say. he says it's easy? >> well, the money is there. that's the easy parts. the problem is, who has the rights to it? and right now, as you know, libya is in transition. the libyan national transitional council is, you know, oversees that money. they are transitioning to a democracy. presumably they're going to want that money, so do these victims, and sayre saying, would it will been smarter to adjudicate the claims and then say this is the amount of money we need. they picked an arbitrary number, $1 poun 5 billion, again, seems like a lot of money. it's not enough when $3 million goes to each person injured, $10 million to the families that lost direct loved one. more than 200 people have not yet settled their claims. the state department does say it's too early to know, and perhaps this will all get settled. >> do they think there are more victims who haven't come forward? >> they say a lot of these claims have not been adjudicated. there's no way of really knowing. these victims say, listen, it's really more than just the money. some of these victims have been paid a little bit of money, but they say it's more than the money. this is gadhafi's money and our one way to get back at this guy, and we want it. >> right. >> interesting. >> alina cho, thank you. >> thanks. also this morning, following hur wane rina. growing more powerful by the hour. bob marciano at the extreme weather center. battening down the hatch. >> absolutely. cancun, boca raton. what it looks like from outer space. check out these cool pictures of hur tain rina. you see the outflow, the outskirts of the circulation showing a healthy storm, and this, a little closer up than our typical geosynchronous satellites about 22,000 mimes up. the infamous sal light. from the video syncs. it's on the cuffs of becoming a category 3 storm. right now winds heading to the west at 5 miles an hour. the forecast, bring it towards the peninsula, includie cause mehl and the jet stream pushes everything east. looks like it wants to take the storm and skirt it quickly to the east. florida still certainly in play. the keys as far north at tampa, potentially and cuba after that as we head through the weekend and into the beginning part of next week. closer to home a couple fronts causing problems today. this one across the northeastern third. some rain, but this one is causing big-time snow problems in denver proper. we'll see several inches of snow there. maybe as much as a foot in spots. maybe well over a foot across parts of the front range. winter storm warnings posted and road closures already. two days ago we in lower 80s. today in denver, 31 degrees. some of the cold air making its way towards the northeast. interior spots in the northeast see a little snow with this system going through the next couple of days. new york city will be mild. 61 degrees, the high temperature. >> i'll take it. >> rob's like an honorary -- he'll seek out the snow wherever it is. it can be august and rob will be telling us there's snow. fantastic, we love it. >> it's clean. it feels good. clean, cold, fresh the exactly right. >> one time where new york city looks clean. >> you can bundle yourself up and keep warm. >> that's true. only after, you know, freshly fallen snow. >> after two hour, it looks like dirty snow. rob, catch up with you later. coming up, the devil is in the details. a closer look how rick perry's flat tax stacks up. is it going to fall flat for republican voters or be popular? it's 39 minutes after the hour. ♪ sent her back to college for her sophomore year ♪ ♪ co-signed her credit card -- "buy books, not beer!" ♪ but the second that she shut the door ♪ ♪ girl started blowing up their credit score ♪ ♪ she bought a pizza party for her whole dorm floor ♪ ♪ hundred pounds of makeup at the makeup store ♪ ♪ and a ticket down to spring break in mexico ♪ ♪ but her folks didn't know 'cause her folks didn't go ♪ ♪ to free-credit-score-dot-com hard times for daddy and mom. ♪ offer applies with enrollment in freecreditscore.com™. were back to "american morning." 42 minutes after the hour. not long ago rick perry was the "it" candidate. poll numbers now are beginning to plunge. he unveiled his plan hoping to regain traction on the campaign trail. it includes a 20% flat-tax rate, or americans were opt out and pay their current income tax rate. the plan also preserves mortgage interest deduction, charitable state and local deductions for familying earning less than $500,000 a year, increases the standard deduction to $12,500, eliminates the inheritance tax and lowers the corporate race from 35% to 20%. joining us, ron brownstein and, ron, you call this the flat tax 2.0. we've been here before. tell me. >> right. well, look, call it 2.0, an attempt and in provisions you site, to deal with the political problems the flat tax ran into the first time debated in the republican primary, which was 1996 under publisher steve forbes. forbes' campaign was launched by the flat tax, almost as quickly sunk by the flat tax when his opponent, bob dole and lamar alexander and pat buchanan all raised serious concerns about it. he was unable to sell it even with the republican primary. witness you got past the initial concept, very popular, into the details. in particular, christine, even republican voters did not like eliminating deductions you cited when forbes prosed to do so in 1996. >> you even dug up the 1996 polling which shows how republicans felt about it. i want to ge through that. back then 60% of republicans opposed eliminating the deduction for home mortgages. >> right. >> 66% opposed limited tax deductions for charitable contributions. 55% opposed limiting deductions for state and local taxes. perry is trying to avoid forbes' pes fall, back from 1996. so is this pandering or is this smart tax policy? >> well, i think it's smart politics in that it is responding to something that was, that could not win support, even with the republican primary, much less with the public overall. an attempt to deal with the problem. the flat tax has several problems historically. one, people don't want to give up deductions. the other, if it's going to be revenue neutral by definition it has to raise taxes on the middle class, because it cuts taxes so much on the wealthy. you see that in the analysis, herman cain's plan raises taxes on 84% and cuts them substantially for those in the top 15%. perry tries to deal with that making it a tax cut for everyone, in part giving you a choice whether to opt into the system. the cost is that is, it's an enormous revenue -- the analysis put out late last night says it will lose $700 billion a year under the current tax law when fully tase ey fully tase e phased in. another challenge. to balance the federal budget after this flat tax, reduce federal spending to 18% of gdp, the economy. it has been that low, christine, since 1966. not coincidentally the year medicare went into effect. >> the flat tax, the reason people like it, republicans like it, people who like the flat tax, because they say it is a game changer that is simple. everyone can understand it. this is like adding another tax bracket. you get to pick and choose. going to the cafeteria and choosing your own tax plan. this year i'll take the 20%. doesn't necessarily simplify the tax code, basically the big, core problem anyway. >> i think this, the appeal of this is more than a tax cut than a simple plan. with the republican primary. as you say, it encourages people to figure out their taxes twice under the existing system and under this new 20% with limited deductions system and choose the one that's best for them. the bigger point is that it's going to cut taxes a lot, and it's going to cut taxes a lot for people at the top. one thing that's interesting is that a private citizen named mitt romney in 1996 took out ads in the "boston globe" and papers in new hampshire and iowa attacking the steve forbes flat tax on one 3r ground. it maintained a tax on wages. then 17%. 20% under rick perry, but it completely eliminate taxes on capital gains and investments. he was arguing in an early echo of what president obama argued under the bucket rule, that was unfair. interesting to see if he makes this argument against perpry as he used as a private citizen against steve force. >> lately, said he loves the flat tax. >> on the other hand, done what bob dole did in 1996. likes it in theory but wants one to protect the middle class. you played that clip earlier talking about tax policy saying the rich are doing fine. is almost inevitable that romney attacks this as, i think, two expensive and too much of a giveaway. not simple politics to the rich. that's not simple politic in the republican primary, but the republican primary electorate is changing. more working class and middle class than it used to be. it will be fascinating to see even in this environment rick perry can sell such a large tax cut when it is a concern about balancing the federal budget. to balance this after the tax cut, you have to reduce federal spending to a level last achieved in 1966 when seniors were a much smaller share of the population and medicare was just getting going. ta would require big cuts he hasn't fully by any means spelled out in this plan. >> can you imagine? the government back in 1966, tax exempt, the code from 166. impressive. ron brownstein, cnn political analyst. thanks so much. >> good to talk to you. there's nothing simple ak taxes. a simple solution for taxes -- it is -- >> i just have to say, the business journalist in me says, ignore them, put in ear plugs, bury your head. it didn't get this way simple lip. it's not going away simply. >> underneath all this, they come out with plans, flat tax plans but it's not going to help anything right now. tax reform is great, but that's going to take a long time. right? >> people need help right now getting jobs. and i'm unclear about how reforming the tax code will change anything in the short term. >> we all say companies don't invest people because of uncertainty. the thinking, you decide to be in a real commitment to be in a low are tax code for businesses, a bnch of businesses will either commit to it, people will startup businesses and do things. there's some logic to that. the criticism is it can't just be simple. it's very attractive, simple answers to things. >> i think herman cain found that out. right? 9-9-9 has become kind of 9-0-9-2. i think herman cain's discovered that, too. >> i give him credit for bringing it into the discussion and forcing us all to have it. it is complicated. coming up on "american morning," our "talk back" question of the morning, can rich politicians relate to ordinary americans? more comments after a break. it's 49 minutes past. earn k for the things we buy most. it's 1% cash back everywhere, every time. 2% on groceries. 3% on gas. automatically. no hoops to jump through. that's 1% cash back on oscar. ...tony. oscar! 2% back on whatever she'll eat. 3% back on filling up this baby. 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[ male announcer ] apply online or at a bank of america near you. we're talking 3% back on gas. or at a bank of america near you. fore! no matter what small business you are in, managing expenses seems to... get in the way. not anymore. ink, the small business card from chase introduces jot an on-the-go expense app made exclusively for ink customers. custom categorize your expenses anywhere. save time and get back to what you love. the latest innovation. only for ink customers. learn more at chase.com/ink 51 after the hour. what you need to start your day -- a tough nice, protesters clashing again after the crowd refused to leave city hall plaza. look at these pictures. police launched tear gas at the protesters. nearly 100 protesters arrested. in turkey, saving the life of a 27-year-old woman and an 18-year-old man both trapped beneath the rubble. their rescue coming 66 hours after the devastating earthquake that killed 450 people. and lowering the costs of student loans. among proposals, allows millions of students to consolidate loans and reduce interest rates. congress paul ryan is expected to tear into president obama in a speech. ryan will argue the president is practicing "politics of division" by wanting to raise taxes on the wealthiest americans. boeing 787 dreamliner took off from tokyo for its first commercial flight in three years. three years later than planned. this was the first commercial flight. the plane sold as a game changer with wider aisles, bigger windows and new energy-saving technology. that's the news you need to start your day. "american morning" is back right after this. welcomes back to "american morning." we asked to you "talk back." the question this morning, can rich politicians relate to ordinary americans? this from jason. no, they don't relate. they've been selling us the same bag of goods for what seems like federal reserve are and never deliver on any of it. the problem, we keep laughing it up and believing them every time. and also, will they? so many are too full of self-interest to bother with anything than the lining of their own overstuffed pockets. ouch. this from patrick. the true answer is, no. they tell us they do but i haven't heard one politician who has lost their job or their home in foreclosure during this rough economy. if they didn't relate, you honestly think it would be as difficult as it's been to get unemployed americans back to work? keep the comments coming. facebook.com/americanmorning. i'll read more later in the show. talking about herman cain's new smoking campaign ad. the web video has his campaign manager taking a drag of a cigarette before cain gives us a slow smile. this from stephen colbert. take a look. i was so impressed by the ads, folks, that i have made some ads of my own. >> hi. mike kilpatrick here and it is my privilege to be chief strategist for the cain campaign. i believe herman cain is the man to restore america's greatness. won't you join me? >> i thought he was going to be smoking a bong or something. >> right. >> good ad. coming up next hour coast-to-coast, occupy wall street. firing back with tear gas and getting uglier overnight pap live report is coming up. 56 minutes after the hour. it can get really complicated. not nearly as complicated as shipping it, though. i mean shipping is a hassle. not with priority mail flat rate boxes from the postal service. if it fits it ships anywhere in the country for a low flat rate. that is easy. best news i've heard all day! i'm soooo amped! i mean not amped. excited. well, sort of amped. really kind of in between. have you ever thought about decaf? do you think that would help? yeah. priority mail flat rate shipping starts at just $4.95, only from the postal service. a simpler way to ship. each day was fueled by thorough preparation for events to come. well somewhere along the way, emily went right on living. but you see, with the help of her raymond james financial advisor, she had planned for every eventuality. which meant she continued to have the means to live on... even at the ripe old age of 187. life well planned. see what a raymond james advisor can do for you. we know how to tighten our purse strings. sugar salmon flakes! sorry buddy. even with bath tissue. that's why i buy new charmin basic. it's very reasonably priced. and it holds up so much better than the leading competitive brand. new charmin basic has a duraflex texture... that's soft and durable. plus, it's two times stronger when wet versus the leading competitive brand. new charmin basic works for my bottom line. and my bottom. we all go. why not enjoy the go with new charmin basic? i tell you what i can spend. i do my best to make it work. i'm back on the road safely. and i saved you money on brakes. that's personal pricing. in atlanta, the occupy wall street protests turned ugly overnight as riot police cracked down on crowds and demonstrators. bright and broke. president obama taking steps to help ease the debt burden of college students. we'll tell you how he plans to do that. and bracing for hurricane rina. the storm is gaining strength and on track to hit some of mexico's most popular tourist areas on this "american morning." and good morning, everyone. it's wednesday, october 26th. welcome to "american morning." >> yes, good wednesday morning. only two days until friday. good morning. we begin with police in occupy wall street protesters mixing it up in two cities. in oakland, riot police sprayed demonstrators with tear gas after the crowd hit them with paint. in atlanta, dozens of arrests, defying the mayor's orders to vacantate the park where they've been camping out. following developments for us in oakland, california, are the protesters still out there, dan? >> reporter: still a few protesters behind my, carol. i'll stepout of the way here. you can see some from front of the barricades set up by oakland police. oakland police still in riot gear. about a dozen or so police officers here behind me. sort ever line in the sand. no protesters allowed past this point. behind the barricades is city hall. where these protesters spent the last two weeks as part of an occupy wall street demonstration. at a certain point, authorities here in oakland got terned about the safety and the security situation over there at city hall. so they wanted the protesters to disband. there were 15 days where protesters were over there. so yesterday afternoon police broke up the protest, and that caused a bit of anger. so several hours later, about 500 of them, tried to reclaim their space, if you will. that's where they met police with riot gear. some of the protesters threw paint, threw water bottles at the police, and that's where things got really ugly. you saw tear gas being used by police. there's still a bit of a haze of tear gas in the air. we can feel it. our cnn crews can feel it, but things a bit calm right now, but you get the sense that there's still this passion among these protesters that something could erupt at any moment. there are still folk some folks downtown. right now, things much calmer. carol? >> so, dan, did police just want to clean up the area where these protesters have been camping out? or did they want to clear the protesters out for good? >> reporter: they wanted to clear out that area in particular. this is right in front of city hall where people go to work, and it had become a disruption. there was a bit of a tent city and they were worried about the conditions. worried about both the safety over there and they were worried about some of the deteriorating health conditions with people being over there for so long. so they felt like it had gone on long enough and told everybody to leave, and the protesters felt like you know it was their right to be there. so that's why they descended back on city hall. unclear where they'll go or how things will sort of development, you know, today and in the hours ahead. >> we'll see. dan simon, live in oakland, california this morning. here in new york city. occupy wall street protesters responding to complaints from residents near zuccotti park because of the noise. they agreed to limit drumming to just four hours per day. and it may fly in the face of what the occupy movement is all about, a suburban couple trying to trademark the slogan occupy wall street with the intent to sell sweatshirts, t-shirts bumper stickers and other merch tyandise. and president obama turns his attention to the struggling college grads who have taken on more debt than they can afford. the last stop on this three-day trip out west. this afternoon he'll announce a new plan designed to reduce student loan rates by allowing grads to consolidate their loans. brianna keilar has more. how's this plan going to work? >> reporter: ali, what the president is really going it announce today is speeding up changes that congress has already put into effect. changes that were supposed to go into effect in 2014. the president will tout at the university of colorado that with executive order and authority he will accelerate the changes to go into effect next year. the class of 2012. you have kids with student loans listen up. how it's going to change. it would reduce monthly payments on those loans to 10% of discretionary income. on this repayment plan based on income right now it's at 15%. you can see dropping that to 10% will have some effect. also, after 20 years of paying on these loans, the debt would be forgiven. right now that's at 25 years. so it would go to 20 year, and, also, there are a lot of people who have multiple kinds of federal loans, and if they have two or month kinds, this would allow them to actually consolidate those loans with a lower interest rate. and, again, ali, this would kick in starting 2012. so the class of 2012, and something that's very interesting for folks who are unemployed, and paying on student loans. they would actually see certainly in 2012 and beyond, they would actually not have to pay that monthly payment while unemployed and, therefore, wouldn't be at risk of default, would be the hope. talk about the process for a second. how is it the president does this and gets it by congress? >> reporter: well, he just bypasses cong. that's the point. this is what the white house is touting. that he's using his executive authority to do this. we've also seen him do this on housing this week. it's part of the president's slogan, as he's on this three-day western swing called "we can't wait." you know, the president is under a tremendous amount of pressure to do something on the economy, but, of course, he does have opposition in congress from republicans who say they don't like some of his approaches. so he's basically saying you know what? i'm going right by you. i have some authority to do certain things. i'm going to do it. we can't wait. i'm stymied by congress but not going to let that get in the way. you can see that is the political argument certainly he's making this week, ali. >> brianna, we'll follow that closely with today. thanks so much. brianna keelner washington. coming up next hour we'll talk more about president obama's student relief plan with education circuit arne duncan. president obama sitting down with jay len e during his three-day swing true colorado, nevada and california. made his fourth appearance on "the tonight show." second as president. joked about his sagging approving rating and asked what the first lady plans to give to trick-or-treaters next week. >> aprival rating 41%. >> right. >> good news, still three times better than congress. so explain -- you're killing, killing! >> halloween's coming up. and she's been giving, for the last few years kids fruit and raisins in a bag. and i said, you know, the white house is going to get egged. >> about ten minutes late for this taping. his motorcade got stuck in a traffic jam on highway 101. for some reason, the security team failed to shut down the freeway. oops. >> get egged. i like that. >> i don't think so, though. rick perry may be having second thoughts about his decision to resurrect the birther debate. telling "parade" magazine he has doubts about the authenticity of the president's birth certificate. listen to perry deflect the issue where confronted at a campaign stop in south carolina by cnn's jim acosta. >> curious. what will it take you to convince you the president was born in this country? >> i'll cut you off right there. in a is one of the biggest distractions there is going. we freed to be talking about jobs. somebody wants it see my birth certificate, i'd be happy to show it to them. the fact is, that is a distraction. >> when asked why he raised the issue of the president's birth sir test kit in the first place, the president said, "fun to poke at him" meaning the president. another dramatic rescue as crews work nonstop in the search for survivors of sunday's devastating earthquake. overnight a 27-year-old woman was pulled from the ruins of the building nap rescue coming 66 hours after the 7.2 earthquake demolished the eastern part of country killing more than 460 people. we're also learning of an 18-year-old pull aid live from the collapsed building. he'd been trapped almost 61 hours. former "60 minutes" commentator andy rooney is said to be in stable condition after suffering what cbs calls serious complications during minor surgery. the 92-year-old made his last regular appearance on the newsmagazine earlier this month. this morning, the michael jackson death trial, the defense will attempt to repair what the prosecution spent nearly two weeks tearing down. presenting witness whose will attest to the that can't dr. conrad murray saved lives. ted rowlands is in los angeles. >> reporter: we expect character witnesses to try to rehabilitation dr. conrad murray's reputation in front of the jury. they didn't get to them yesterday. they'll do it today. we heard from a nurse, cherilyn lee, a bit of a shaky time on the stand. for a while will to get off the stand because she wasn't feeling well and did tell the jury that michael jackson asked her for propofol in february of the jyer he died. the defense is using her to establish jackson was seeking propofol from multiple people, was after it and would get it at any cost. that's the theory. the prosecution used it to establish nobody should have been giving jackson propofol at all. >> were you not willing to give michael jackson the propofol or dip vann or i.v. drip. >> absolutely not. >> what you had learned it could kill him potentially. >> yes. it wasn't used for home setting. it wasn't -- >> and after this meeting, in your observations and the conversations you relayed on april 19th, you never saw mr. jackson again. did you? >> no. >> reporter: the other big witness yesterday for the defense, randy phillip, the ceo of aeg, putting on the jackson promotion. he testified what was going on in weeks before michael jackson died. specifically he told the jury that he became so concerned about jackson's behavior that he actually told dr. conrad murray about dr. arnold klein. >> this one meeting he just seemed a little distracted, not focused. after the meeting, as we were leaving, i asked michael amir williams, i said, if everything okay? out of concern, and he said, no. he just came from dr. klein's office. and i didn't know what that meant. but that's what he said. >> you didn't know what kind of treatment or -- what dr. klein was giving michael jackson? >> no. i just said he had seen dr. klein, he's his principle physician i thought he should know in case mike's hadn't told him, he should know he was seeing another doctor. >> reporter: janet jackson was back in court along with most of jackson family. we expect the defense will wrap up the case on thursday when they bring on their expert witness, dr. paul white. we then expect a rebuttal case from the prosecution or possibly closing arguments on friday. guys? still to come this morning, hurricane rina is gaining strength. it heads towards mexico's ka caribbean coast and the most popular tourist destination, a live report from cancun just ahead. and who you would most like to have dinner with. that's ahead. it's about 12 minutes past the hour. welcome back to "american morning." hurricane rina on the verge of becoming a category 3, a major storm, and it's headed right for mexico's most popular tourist areas. this is what rina looks like from space. she's big. and battening down the hatches in cancun. what are people doing to prepare for this storm? this monster looks like it will hit very popular tourist destinations there. >> reporter: that's right, christine, an emergency meeting last night where officials said that there are about 83,000 tourists in the cancun area. not only here in the city of cancun where i am but also in what is known as the reveria maya. many of those tourists are americans. i was at the airport and saw many of them are just trying to get out as fast as they can. the bad news is that if they didn't arrange a flight yesterday afternoon, chances are they won't be able to got out today. i was talking to a tourist from spain who told me that she tried very, very hard last night to get a flight and she wasn't able to, and so right now the fear is that hurricane rina packing winds of 110 miles a's hour may become a category 3 hurricane, which would be devastating for this part of mexico. residents here remember hurricane wilma in 2005. how it paralyzed this beach resort. it took a year for them to recover. so they're just hoping that it will go in a different direction and not hit cancun and especially cozumel which by the way has been evacuated already, and so that they won't have to face this directly, christine. >> two questions, rafael, when are they expecting landfall, first, and second, if these american tourists can't get out, what are they supposed to do? hunker down in their hotels? >> reporter: there's about 54 shelters open in the city of cancun itself. there are shelters in 11 hotels in the main tourist area. so officials are really not concerned that these tourists are not going to have a place where they can be protected when the hurricane comes here, but the reality of it, like i said, if they haven't made any flight arrangements by now, chances are they're going to have to stay here. regarding the other question, it's just very difficult to tell at this point. officials here say that it's -- landfall is expected to happen anytime between midnight tonight and sunrise thursday morning. again, there's still a chance that it may turn to the east and not be as severe to this part of mexico as it can be, but, still, almost a category 3 packing winds of 110 miles per hour. christine? >> reaching back to comparing anything with wilma, you know people are very, very worried. thank you very much, rafael. 18 minutes after the hour. trial to check in with rob. rob, there's some chance of this hurricane moving east again, and getting parts of florida. >> true. and you speak of wilma. it developed in the same spot wilma developed six years ago. didn't intensify as quickly, but it's rivaling that strength, may become a category 3 storm in the next day or two. the initial course of this is going to bring it towards the eastern coast of the yucatan, very, very wilma-like. we'll hopefully keep it below wilma strength, likely to happen, and hopefully away from the u.s. can't guarantee that yet. winds at 110 miles an hour. here's the forecast track. pretty confident over the next two days. like rafael spoke of, we expect to do make landfall early tomorrow as a category 3 storm. cozumel, cancun right in the eye of it and likely steering off towards the east and weakening somewhat, but if it maintains its strength, it's likely that it goes a little farther north. that's the bad news. we're hoping for a weakening and keeping it to part of the south. a lot of uncertainty once we get this thing past cancun, mexico. closer to home, showers rolling across parts of the great lakes, and a snowstorm, that would be typical of november or even december, in parts of colorado. these are some of the high plains. this isn't isn't the front range or higher terrain. really, colorado over 10 inches of snow already and loveland seeing 7 inches of snow as well. we'll see probably a lot more as we go through the day today. especially along the front range where we could easily see over a foot. two days ago up and ober 80 degrees in denver. 30 degrees today, winter storm watches posted. there's your storm. combined with a little energy the next couple of days and a potential for seeing snow in the interior parts of the northeast exists although far away from larger cities. it you're traveling from the larger cities today, new york, philly, denver, those are the problem spots because of the showers and, of course, the snow. the president of the united states, scheduled to be in denver today. may have issues as well with travel there. >> what was it? 80 degrees in denver a couple days ago? >> yeah, yeah. love this time of year mgt weird. >> thanks, rob. >> thank you, rob. now's your chance to "talk back" on one of the big questions of the day. can rich politicians relate it ordinary americans? rick perry thinks not. on cnbc, perry went there to describe mitt romney. >> i would say that he ought to look in the mirror, i guess. i consider him to be a fat cat. >> oh, perry called romney a fat cat. that term quite toxic these days. a cnn/orc poll proves that. the vast majority of americans think wall street bankers are dishonest, greedy and overpaid. although romney is not a banker, he's as rich as one, worth up to $ 250 million. something perry checks out and liberals, too. check out this magazine cover. money bursting from this pockets. his business savvy can create what working americans need the most, says romney. >> for me, one of the key criteria in looking at tax policy is to make sure that we help the people that need the help most, and in our country, the people who need the hope most are not the poor, who have a safety net. not the rich who are doing just fine, but the middle class. >> but the left and the right hope that toxic term will stick. mitt romney, fat cat. "talk back" question for you this morning -- can rich politicians relate to ordinary americans? facebook.com/americanmorning. facebook.com/americanmorning. i'll read your comments later this hour. still to come, if you're in the market for a new car or suv, a new list of the most reliable vehicles right now on the market. we'll have that for you. >> and surprised what's making the list on that one. plus, the world is waiting and watching for the outcome of an emergency meeting in europe. what it means for your finances and for america's recovery. you got a weather balloon with points? yes, i did. [ man ] points i could use for just about anything. ♪ keep on going in this direction. take this bridge over here. there it is. [ man ] so i used mine to get a whole new perspective. ♪ [ male announcer ] write your story with the citi thankyou premier card, with no point caps, and points that don't expire. get started at thankyoucard.citi.com. 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"minding your business" this morning. right now u.s. stock futures are trading higher. markets took a hit yesterday. the dow dropped 1.7% as fears about europe's debt picked up again towards the end of trading day. today is the day investors have been waiting for. all 27 leaders will meet in brus 78s to come up with a grand plan to save the eurozone. the big question, how much of the debt burden from faltering countries like greece and spain will be transferred to europe's largest banks? details of the plan are expected to be announced later this afternoon. ford motor company announced it earned $1. 6 billion in the third quarter. the ninth straight profit about the quarter for the country. ford is the tenth largest corporation in america. one of those blue chip stocks that could be in your 401(k). consumer reports is out with a list of most reliable cars trucks and suvs. the mazda 3 named mow reliable small car. and the ford fusion, midcar and the toyota highlander the top suv. and soon stop sending "harry potter" videos. and a tablet computer, the top choice for christmas gifts. tablet computers actually beat out peace, happiness and money this year on people's wish lists. don't forget, for the latest news about your money, check out the all-new cnnmoney.com. "american morning," right back after the break. ♪ we're centurylink ... we're committed to improving lives and linking americans to what matters most with honest, personal service... 5-year price-lock guarantees... consistently fast speeds ... and more ways to customize your technology. ♪ [ cellphone rings ] cut! [ monica ] i have a small part in a big movie. i thought we'd be on location for 3 days, it's been 3 weeks. so, i used my citi simplicity card to pick up a few things. and i don't have to worry about a late fee. which is good... no! bigger! bigger! [ monica ] ...because i don't think we're going anywhere for a while. [ male announcer ] write your story with the new citi simplicity card. no late fees. no penalty rate. no worries. get started at citisimplicity.com. all right. welcome back. top story, a game of cat and mouse between rioters and police. police threw tear gas after getting hit with paint. demonstrators defied a ban that formed outside of city hall. dozen of occupy atlanta protesters were arrested after they refuseded mayor's order to leave a downtown park. today president obama is expected to announce a plan to help college graduates drowning in debt. among the proposals, encourage students to consolidate federal loan and reduce interest rates. and hurricane rina gaining strength as it heads towards mexico's caribbean coast. it's near category 3 strength with winds almost 125 miles an hour. it's expected to reach the mexican resort city of cancun sometime tomorrow. during a reign of terror, moammar gadhafi was able to reach far beyond the borders of libya to kill americans. a battle won there, in tripoli, with real hope for a better tomorrow. >> an interesting twist. hundreds of libyan sponsored terrorism living here in the united states, the fight is just beginning. alina cho has a special "in-depth" report. i hadn't thought about this side of the story. >> all you have to say is lockerbie. pan am 103, the flight that exploded over lockerbie, scotland, talking about nine terrorist attacks in all, more than 200 victims. back in 2008, the u.s. government under president george w. bush made a deal with the libyans. gadhafi gave up $1.5 billion to compensate u.s. victims of libyan-responsible ared terrorism. in exchange, the victims who filed lawsuits against libya agreed to drop the claims. at the time it seemed like a pretty good deal, but now some are calling this a deal with the devil. these victims came to us with their stories of horror. >> i saw people dying in front of me. >> my kids ask about him a lot, and -- >> i look at my hand, i had skin and blood. >> reporter: maria diaz was just 15 when she and her aunt were caught in the cross fire in the 1972 airport attack 24 tel aviv. diaz was hit way grenade. her aunt, just six years older, 21, and newly engaged, was killed. >> i would have given anything for that to happen to me, not to her. >> reporter: after all these years, this is diaz' first tv interview. >> four minutes, and it changed my whole life. >> reporter: in the nearly 40 years since, diaz says she still has pain in her legs, has endured eight surgeries and has not seen a penny of the money the u.s. government promised she would get. money that is supposed to be taken from a $1.5 billion fund set up to compensate victims of libyan sponsored terrorism. what she got, this letter saying she would eventually get a pro-rated payment. 20% of what she is due. how much of the money have you seen? >> at this point, i haven't seen any. >> reporter: the problem, say these victims, is that the government miscalculated, and that there's not enough money left in the compensation fund for more than 200 victims. an estimated shortfall of 350 million dollars. but the state department says it's too early to say there will be any shortfall. the state department would not ge on camera, but told cnn "it is premature to determine that there will be a shortage of settlement funds. roughly half the claims are still being processed." some of the money was distributed to some of the victims. >> lockerbie, and the dick discotheque. attacks you probably knew about. >> reporter: the host high profile. >> the most high foale. a lot of attacks most don't recall. >> reporter: like the one this man was injured in. >> if injured you're entitled to $3 million. if were you killed, $10 million, your family, of course, for wrongful death. >> reporter: so you thought, okay, eventually i'll get this money. >> i did. >> reporter: he's received $600,000, but it's 20% of what he's owed. >> that's insulting. to say you'll get a prorated amount now and not guaranteeing you'll get the whole amount later is insulting. >> reporter: neither of these victims were in the lawsuit, but they are entitled to the same amount. alex was a litigant in the historic case that led to the u.s.-libyan agreement to compensate victims. he lost his father on uta flight 772 when it exploded over the african desert in september 1989. his family has been paid $ 2 million of the $10 million owed to them. >> i blame the u.s. government. clearly, they didn't do their homework and were rushing to make a deal with the devil. the amount of the money is no really the issue. it's really about justice. >> what is interesting about this case is that the victims say there is actually an easy solution. easy for them, at least. senator schumer told us there's $32 billion in frozen libyan assets and that some of that money should just go to the victims. it amounts to about 1% of the $32 billion, if talking about -- >> libyans were saying, we'd really like some of the money. >> of course. the national transitional council, they are transitioning to democracy in libya, of course they want that money. >> who froze the assets? if the united states froze the assets, do we have the power to hold that money back? >> it's still being worked out. the libyan government lays claim to these assets. things could change, of course, as these claims get adjudicated. these victims, you see this man who lost his father. it was 22 years ago, and i said to him, you know, it really never does go away? and he still chokes up. he's a man who's 52 years old. what they tell me is that, this is more than just about the money. this is gadhafi's money. this is our one way of getting back at this man. >> right. >> and at the time that we interviewed them, gadhafi hadn't been killed. just a few days later. they said, he'll get his. >> and they'd like to get their money. >> they would like to get their money. >> alina cho, thank you. in other news this morning, vice president joe biden is going after a reporter from a conservative news organization who confronted him last week about using a rape reference in a speech. reporter jason matera claims rape and other crimes would rise in republicans voted down the president's jobs bill. biden is asking a senate official to investigate whether the reporter misrepresented himself to get access to the vice president. herman cain solidified his position at the front-runner in the gop presidential polls. just finished first in a cbs "new york times" poll, four points ahead of mitt romney. something else to consider. in another poll, cain finished seven points ahead of mitt romney and 12 points ahead rick perry when asked which candidate they would most likely support. >> we guessed it. and check out what happened while getting married. look at that. a huge dust storm. as i like to say, a haboob crashed their wedding ceremony. look at that. >> oh. >> i mean, honestly. the couple refused to go inside. they made it through, even though the bride was no longer wearing white. the video made the newlyweds an internet sensation. >> her hair is remaining pinned up on her head. amazing. >> look at bridesmaid handing her her flowers. look at the -- haboob. >> a good story for years to come. >> hey, trick or treat. a connecticut state lawmaker wants to change the date of halloween to ensure it always falls on a weekend. >> what? >> bear with me now. proposing the last saturday in october be designated at halloween. he says the day would be less stressful for parents. >> true. >> safer for trick-or-treaters and good for the economy. >> there would be parties. you know, grown-ups without kids are not having a monday night party for halloween. and if it were the last saturday in halloween, this year it would fall on a saturday the 29th of october. which is -- what else is going on on the 29th? it's a big day. the 29th of october this year. oh. it's my birthday. >> you turn 60! >> and i don't look a thing over 50. so i would love that. just have a big halloween party. dress up like each other and celebrate. >> wear a bald wig if you like ali velshi. a standard procedure these days. today fda is examining the risks associated with having an mri. we'll talk to elisabeth cohen about it. calmed a game changer in the skies. boeing dreamliner finally made its maiden voyage. and i quit smoking with chantix. knowing that i could smoke during the first week was really important to me. 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[ male announcer ] ask your doctor if chantix is right for you. these are the reasons i quit smoking. we're going to head on into the interview. mr. and mrs. nadimpalli... baba... what's the difference between the fusion and other hybrids? the look. yeah, it doesn't look like a box. we wanted a hybrid and we wanted... didn't want it to look like a hybrid. and ford hybrid was fantastic for that. what are your favorite uses for sync? movie listings for me. yeah, i do everything with it. who uses the navigation system the most between the two of you? republicans are putting job proposals of their own on the table. majority whip kevin mccarthy says one of them would make it easier for small businesses to grow and to hire more americans. joining me now from washington is republican congressman kevin mccarthy. the majority whip. also the co-author of "young guns" a member of the financial services committee. congressman mccarthy, thank you for joining us. >> thanks for having me. >> you are attempting to address one of the biggest complaints we hear, christine and i are con r constantly listening to one of the problems small businesses have in expanding, the inability to raise money. you want to tackle that with your bill. how? >> fundamentally, we have a law on the books from 1933 that if you have a great idea, and i started my first business when i was 20 years old, but the rule says if i want to go find capital outside of a bank i have to have a pre-existing condition or relationship with any of these individuals. i didn't know people from the other side of the track, so i have to register with the sec. we're going it wipe that away. allow the idea to find the accredited investor to invest in the idea to spur the economy. >> just so viewers know. an accredited investor is typically the one that invests in venture capital, a hedge fund. an investor -- >> no. a credit the investor has a million dollars in assets and makes at least $ 200,000 a year. >> the typical that invests in venture capital. not the kind of investor that invests in your local small business. so what kind of businesses are are hoping to spur with this? >> well, this is the idea. you can now go out, advertise, solicit individuals that have capital like that to invest in your small business. my small business happened to be when i was 20, a deli. i wanted to expand it. the government was going to hold me back, cost me thousands to register with the sec instead of using the internet, somebody with money, i have a great idea. invest with me. different than a bank. so i don't have to pay monthly payments. i set the term where it goes and i start new businesses. >> so it's an interesting idea. here's my question. of those businesses that are not expanding, there are a couple of reasons why. right? one is, i don't know how much of it is true, but some say uncertaining a health care re lation. i'm not expanding. others say i can't get money from the bank, i'm not going to expand. others say demand is not there. i'm not going to expand. how much of the problem of businesses not expanding do you think changing this law will have an affect upon? >> nots the end-all, but a big beginning of it. what you'll find if you go back to the end of the last recession, the beginning of this recession, 2001 to 2007, a good time in america, and you measure job growth, if you were a company with 500 employees or fewer you added 7 million new jobs pap company with 500 employees or more you cut 1 million. those 7 million new jobs, 60% came from companies five years old or younger. the entrance to the market is too great you won't have a job growth. if you machine are today start-ups in america are at the 16-year lowest point. the interest to market is too great. one a regulation, one is access to capital. iffy have a great idea you want to make sure capital finds its way. >> talking about a deli, for instance. >> sure. >> we're looking for investors for this deli. trying to expand into five delis. why would that investors, that accredited investor with $1 million or more, why would they choose the deli when that's not really a high-growth industry, and the point i'm trying to make. a lot of the companies that can't get loans from banks are companies that are not high growth industry and the bank says you're not a great bet. >> what about the first deli of the surway? stephen jobs starting out in a garage? >> right. >> what about facebook starting in a dorm room? a good idea will find the capital, if you unshackle it and allow it to happen. right now government makes you register. >> you just gave three examples of companies that did start from virtually nothing and did get all the capital in the world that they needed. >> yes, and how many -- how many thousands of them that had ideas that coin get there? how many people had to sell out ahead of time? tell you, in my business itself when i was going out, the government told me i could not talk to the individual unless i already had a relationship with them. you know what? i came from the wrong side of the tracks. >>y can have family and friends invest in your business. you're saying, if you don't know who they are -- >> yeah, but if you know my family, we don't have much money. i needed to have a different faep, i love the fact you're thinking creatively about this and this is how we have to think about dealing with our jobs problem in this country. what some accuse the president of doing, tinkering around the edges. in fairness, this is tinkering around the edges. it's neat, and you tinker around the edges with 20 different programs you might create a lot of jobs, right? >> if small business creates 7 million jobs and big corporations cut 1 million during those times i think enhancing anything to small business will help creation. you make a good point. we have an overall plan. we have the forgotten 15 bills sitting in the senate that would help not only our energy policy but job creation as well. this is just one element that's passing through financial services and it comes to the point. these bills can continue to pass and send over to the senate, nothing will happen. we need to have a long-term plan. this is a small thing that can help long term. >> right. i think sometimes small ball is the way to win it, too. you kim up with a lot of small ideas and some big ones and we've got to attack the problem any way we can. appreciate you coming on and tells us about the plan. it's creative and interesting and we'll watch with interest. kevin mccarthy, republican from california. majority whip. making him the third highest ranking republican congressman, member ever the financial services committee and the co-author of eyoung guns." interesting discussion. >> absolutely. still to come this morning, you probably don't think of the risks when you have an mri. you might be shocked to learn some of the things that could go wrong. and today's "romans' numeral." ten years. here's a hint. if you're a college grad, it's about giving back to get ahead financially and not dying with student loans. still to be paid. it's 49 minutes after the hour. ♪ it's true. you never forget your first subaru. your doctor will say get smart about your weight. i tried weight loss plans... but their shakes aren't always made for people with diabetes. that's why there's new glucerna hunger smart shakes. they have carb steady, with carbs that digest slowly to help minimize blood sugar spikes. and they have 6 grams of sugars. with 15 grams of protein to help manage hunger... look who's getting smart about her weight. [ male announcer ] new glucerna hunger smart. a smart way to help manage hunger and diabetes. all right, welcome back. this morning's romans' numeral. a number in the news, something i'm passionate about. student loans. the number is ten years and that's the amount of time a college grad has to work in a nonprofit or public service to have all federal student loans forgiven. the president wants to speed it up. this would be graduates starting next year, 2012. so, future graduates, you have a shot to, you know, pay off those law school degrees, if you work for a public defender. >> the options of what you can work in are very broad. >> absolutely. a lot in here called income-based repayment, as well. they want to limit how much of your pay you're going to be saddled with paying your student loans to. after 20 years, for just the run of the mill federal student loans. after 20 years, your student loans will be wiped away. >> sounds like a great program, if you can, of course, find a job somewhere. >> there's always an if, carol. but there you go. we asked you to talk back on one of the big stories of the day. this is the question for you. can rich politicians relate to ordinary americans? this from kelly, of course, they can. whether or not their wealth distances them from the average american is reflected in how they operate in their vote/work record. debbie, no , they cannot. how in the world can they relate when they have been so isolated from the struggles of ordinary americans? fdr certainly did. he was called a traitor to his class by many wealthy americans. don't you think it's time for individuals be judged by their own assets, deficits and not by simple stereotyping? we'll read more later on. all right, in this morning's house call, more people than ever are having mri scans. they can be life savers diagnostically, but when used improperly the results can be dangerous and in some cases even fatal. the fda is holding a workshop on preventing mri accidents. elizabeth cohen is explaining what kind of mistakes these are and how they happen. i'm clauser phobic, i'm scared of mris to begin with, but i didn't realize something could go wrong. >> your doctor tells you to get an mri and you get one and lay down and you're done. mris are a terrific technology and the vast majority of the time things go well, but sometimes things go wrong and the reason that they often go wrong is because the m in mri stands for magnetic. mri machines have these huge magnets and they attract any metal in the room, which is why there's not supposed to be any metal in the room. what happens is if there is metal in the room, you can see if someone brings in an oxygen canister, even across the room, it will fly into the machine and some researchers did this as a demo to show what could happen. imagine if instead of a watermelon that was a person. that would be terrible. so, as i said. the magnet in these machines can be very, very strong and can attract b any metal in the room. so, there's some concerns that technicians aren't being as careful as they should be about making sure there's not only no metal in the room, but no metal in your body, as well. like a stentor anrism clip. >> so, what are you supposed to do if you're scheduled for an mri? what do i have to do? do i have to ask the technician if they're checking there's no metal? >> first, i want to explain what these photos are. these are photos from a website mri metal detector blog that can show you what can happen. these are metal objects like beds and chairs that show you they could be attracted to that magnet which could have devastating results for the person in there. there are rules on what could happen in an mri suite, but they strar vary from state to state. the technicians really are the ones in charge and we're told the technicians get less training than beauticians. >> wow. okay, this is interesting. this is entirely new. i'm glad you were here to tell us about it. elizabeth cohen. >> i recently did a shoot at duke university in an mri suite and we went through maybe 45 mns of paperwork and double checking and triple checking and everything we brought in we actually brought out. they were very, very careful about it for this very reason. they didn't want us coming in there with all this gear that could eventually cause a problem. so, i was actually impressed by how -- plus t ruins their machine which costs a lot of money, too. >> the bottom line there. oh, that's just scary. i hope i never need an mri. in the next hour, from coast to coast, occupy chaos. cops hit with paint, firing back with tear gas. it's getting uglier. we'll have a live report coming up. the president offering a shovel to students buried in debt. we'll ask the education secretary about the new plan, just minutes away. you're watching "american morning." it's 57 minutes after the hour. whoa. whoa. how do you top great vacations? whoa. getting twice the points on great vacations. whoa! use chase sapphire preferred and now get two times the points on travel, and two times the points on dining and no foreign transaction fees. whoa! chase sapphire preferred. a card of a different color. apply now at chasesapphire.com/preferred sun life financialrating should be famous.d bad, we're working on it. so you're seriously proposing we change our name to sun life valley. do we still get to go skiing? sooner or later, you'll know our name. sun life financial. germany's chancellor warning it is now or never when it comes time to solving europe's debt crisis. i'm christine romans. talks to get a handle on the region's debt problems are reaching their final stretch. what it means for you on the global economy. and "occupy" chaos. anti-wall street protesters tossing paint at riot police in oakland who sprays the crowd with tear gas in return. hundreds of demonstrators have been arrested. i'm ali velshi. president obama about to unveil a plan to help students with the crushing cost of higher education. we'll break down the president's proposal on this "american morning." all right. everybody, good morning. it is wednesday, october 26th. welcome back to "american morning." >> yes, good morning to you. up first this morning, what is happening in europe this morning. no doubt weigh heavily on the u.s. markets and your investments. european leaders are trying to hammer out a plan to fix the country's debt problems. as we wait for word of the deal from brussels, u.s. stock futures are trading higher. >> let's go straight to nina live in brussels, belgium. this is the fourth meeting, i think, in the course of a few days. a combination of european leaders or finance ministers or euro zone leaders is there a chance of break through and progress today? >> yeah, we're limping ever closer towards the finish line. a few hurdles to clear before the negotiations finish this evening. and the big question is, they've promised us many times that we'll have a deal to solve the euro zone's debt crisis by the end of today, question is, will we and what happens if we don't? the question is, really, if we don't. we could be in unchartered territory. let's look at the issues at hand here, ali. on the one hand, they have to boost the euro zone bailout fund and they also have to impose a hair cut or write down on private investors to make the private sector bear some of the pain of bailing greece out and shore up the capital of the euro zone banks. difficult subjects to discuss. difficult subjects to report on, but imagine if you are 17 countries having to decide on this altogether, ali. >> some sense of consequence if there isn't a deal or overwhelming expectation that there will be a deal? >> i heard the word catastrophe mentioned to me several times over the last couple days and that may be far fetched. the be all, end all summit slipped aurpd. that was supposed to be three day uz days agree. they promised us we will have something in place by today, but, realistically, what we're starting to hear already is that the details of whatever they may or may not agree on when they do eventually come to some kind of conclusion after today's talks may be sketchy at best and that may not be enough for the markets. i should remind you, what is at stake here is the single currency, the stability of the euro and accounts for 25% of the world's trade. big reserve currency and it could affect everything from trade with the united states. just for fun, i wanted to show you three these. belgium waffles. this town as this summit continues is continuing to be increasingly synonymous with more waffle, big test is, will we see any later today? >> we have a truck outside columbus circle. have you guys seen it? >> the waffle truck? >> a truck that sells those. a belgium waffle cart. they call them dinghies or something and they put sauces on them. you know, it's delicious. >> are we going with this? >> we're not going anywhere. excellent work. great explanation. >> the question is, when they do get a deal, what does the deal look like? >> hopefully not a waffle. >> you're right. lots of little nooks and crannies. >> our u.s. markets indicating a higher open and this is one thing they're thinking about and a bit of a feeling of optimism that could deteriorate. >> 25% of the world's trade, yes, it matters. in other news this morning "occupy wall street" protesters taking it to the streets in oakland, california, and getting tear gas in return. returning overnight to their camp at city hall plaza. police sprayed the crowd with tear gas after getting hit with paint and other objects. dan simon is live in oakland with more on this. how many arrests went down, dan? >> about 100 people arrested, carol. things getting ugly when police decided to throw the protesters out where they're hanging out near city hall. they've been there for about 15 days and police decided the situation was getting unsafe and they thought there was some health problems. so, yesterday afternoon they made the decision to hit the road and they disbanded and then several hours later, these protesters about 500 of them decided they wanted to come back. and that's where they were met with police who were in riot gear, tear gas was disspelled. it was a very ugly situation. as i said, about 100 people arrested. there were some minor injuries. behind me, i'm going to step out of frame. you can see a live picture now. you can see some barricades set up. a minimum, a minimal police presence, a few protesters in front of these signs. it seems like things right now are under control, but, of course, police still here just making sure that the violence, if you will, doesn't erupt, again. carol? >> we'll have to wait and see what happens later today. dan simon live in oakland, california, thank you. protesters also clashing with police in atlanta. 50 or so demonstrators were arrested there. they refused the mayor's order to leave woodruff park. it was home to "occupy atlanta" movement for several weeks. the occupy of zuccatti park continues. they've agreed to limit drumming to just four hours a day. so, demonstrators will drum between -- >> i didn't realize it was such a constant feature. >> oh, yeah, i went down there last week and they constantly drum. that would drive you insane after a while, if you lived down there. if you lived down there, could you imagine. but to the tourists coming down and looking at them, they're enjoying it. >> in times square they give you money. >> i'm glad they have come to some sort of compromise out there. in some cases education lasts a lifetime and in some cases the bills. president obama will bypass congress and announce new executive actions to ease the burden of student loans. joining me is arne duncan. welcome. >> thanks a lot for having me. >> thanks for being here, we appreciate it. the average student debt for people graduating from a four-year college is nearly $24,000. it is so bad that our combined student debt now eclipses all of our credit card debt. it's just astounding to me. so, how will these changes that the president is proposing help? >> this is a big deal. basically, what we're doing, we're just going to do this by ourself. we can't wait for congress, we will reduce monthly payments, depending on the individual, by as much as a comhundred dollars. if we can reduce those monthly payments, we'll reduce defaults and strengthen the economy and people are hurting out there. families are struggling. it's hard for recent college graduates to get a good job. we have to help out. we're thrilled to be able to do this and do it now and not to wait. >> let's look at an example you gave us on how this plan will affect a real person. i'll put that in quotes. we have a nurse earning $45,000 a year with $60,000 in federal student loans. under the standard payment plan, she'd paid $690 a month. under the revised pay as you earn plan, that would drop, that would drop to $239. that would save that woman, that nurse $451 a month. after 20 years, if she hasn't paid off all of the debt, that debt will be forgiven. why would you ever choose to pay off all of the debt, if the debt will eventually be forgiven? >> well, people want to do the right thing. we want to encourage them to do this. that is about putting more disposable income in people's pockets and helping them pay the rent or buy groceries or pay the electric bill. this is trying to help people now and ultimately by reducing that debt each month, lowering those payments, we'll reduce default rates for the country. >> the biggest problem here is for the cost for the college education. it increased, what, christine is my encyclopedia of college -- >> another 5% to 8%. >> another 5% to 8%. is there anything the government can do to try to control the cost of a college education? >> i don't know if we can control it. we tried to do a couple things. historic increases in pel grants on the front end. an additional $40 billion for low-income families to send their children to college. we did that without going back to taxpayers for a dime. putting all that money into young people. that was controversial here in washington. we thought it was absolutely the right thing to do. we're announcing today greater transparency. as young people are applying to college, much more information on what they'll pay over the four years. we have the best system of higher education in the world. people are smart, they're savvy. we want them to shop and compare and everybody wants a good education and they want a good value for that money. >> give them some advice at public universities because states are having so many problems with their budget. tuition at state university is going up, too. nobody can afford anything any more. it's insane. so, give us some advice. what should we do? what should parents do to ensure that their kid can get a college education? >> again, shop and compare. there's different things going on. some universities are raising their tuition higher than inflation and other universities are keeping their tuition flat. they're going to three-year programs and going to no -frill universities. we're doing everything we can to support those. a range of great options. be smart, think about it. weigh all those options. you want to get a good education and you want to look at graduation rates and you want to look at potential majors and you want to look at what those costs are going to be, not just the first year, but over the four years until you complete. >> going back to community college, many parent out there would say, i just don't think having a degree from a community college would get my kid a good job. >> i would beg to differ. the community colleges are this unpaolish unpolished, unrecognized gem. there are many people who actually have four-year degrees going back to community colleges to get the next big job. health care, technology, whatever it might be, whether it's going directly into the workforce or going on to get a bachelor's degree once you complete the community colleges degree. we think they're a great, great option and with our pell grants you can basically go there with almost no out of pocket expenses. go there at zero additional costs. >> on the subject of pell grants some republicans don't like the idea of pell grants. i know universities across the nation have been sending out these letters saying help us protect the perx ll grant because they're in real danger of going away. >> anyone who would take away from pell grants, i fundamentally reject that. we have to educate our way to a better economy. the american dream is not only to graduate from high school. that is the only way we'll strengthen our nation long haul. we need more people going on to college. in the past two years we had a 50% increase in the number of people benefitting from pell grants. anyone who wants to reduce them are not just hurting young people, but hurting our country. >> arne duncan, thanks for joining us. >> thanks for the opportunity. >> that second question you asked was so good. if you stretch some of it out and have it forgiven. the first thing i did after i graduated every cent went to pay a student loan i had from my senior year. i couldn't rest knowing it was there. should i have stretched it out for a long time and use that to invest in something else? i don't know. >> we have this argument a lot. >> you were right on that one. a lot of families ask me, so, wait a minute, we haven't upgraded our house and we're trying to save every penny and the student loan office is going to see everything we saved. >> if you're a saver and you're responsible. this is the issue here for years. savers and people who did the right thing are not getting these special services and provisions. >> there's no student loan debt for them to have. >> sadly, it does not pay to be a saver in america. >> that's the saddest thing in all. why a former goldman sachs director is expected to surrender to the fbi this morning. hurricane rina ames for cancun. it's 14 minutes after the hour. ♪ [ sighs ] [ bird chirps ] [ bird squawks ] ♪ [ bird screeching ] ♪ [ elevator bell dings ] [ sighs ] how mad is she? she kicked me out. but i took the best stuff. i'll get the wrench. ♪ [ male announcer ] kohler's tresham collection. life. with a twist. ♪ that is better than today. since 1894, ameriprise financial has been working hard for their clients' futures. never taking a bailout. helping generations achieve dreams. buy homes. put their kids through college. retire how they want to. ameriprise. the strength of america's largest financial planning company. the heart of 10,000 advisors working with you, one-to-one. together, for your future. ♪ rob marciano is in the extreme hurricane headquarters this morning. good morning, rob. >> good morning, guys. want to start you off with this cool vantage point of hurricane rina, which is almost a category 3 storm. this taken from the international space station which cruises a lot lower than our typical weather satellite. you get a close-up look of the eye, the outflow, the well-structured storm that is rina with winds of 110 miles per hour. right now back to our typical spot. as the camera 4 continues to move. all right, freeze it up there. frame it. perfect. that's good. this storm has got winds of 110 miles per hour and drifting off the west of about 3 towards the yucatan peninsula. this satellite is infinfrared. cu cusemel. once it does that, we don't know what will happen. if it continues to be strong and not knocked down by the jet stream picked up to south florida and if it gets knocked down by the jet stream, weaken and maybe head towards the florida straits or to cuba. we don't know what will happen. right now all eyes on cancun and yucatan peninsula. american tourists travel advisory there. wouldn't want to be going there any time soon. couple fronts creating rain across the great lakes and that will get to the northeast and this storm is creating some snow across parts of colorado. these are not high elevation snows. these are the high plains at about 5,000 feet. ten inches in greeley and still snowing there along i-25. more of a front range event, meaning, easterly winds cooling that air and dumping the snow along the lower elevations east of the continental divide. 31 degrees the high temperature after a high temperature two days ago 80. got to love this time of year. early season snowfall and a late season potential major hurricane brewing in the northwestern caribbean. i think rina will be a problem for mexico and maybe the u.s. over the next several days. >> thank you, rob. this next one is a little tricky. christine and i haven't drawn you into this yet, carol, but i am very excited. today is a milestone. it is history in the aviation history. christine has a slightly different take on this. >> it is history. history finally after all kind of delays and billions of dollars of something overrun. >> that is what you call raining on one's parade. the boeing 787, the dreamliner. a nod to christine, three years of delays and that plane landed in hong kong a few minutes ago. the dreamliner is being sold as a game changer. wider aisles and bigger windows and energy saving technology and a different kind of lighting. the pressurization in the plane, you know, no plane has ground level pressurization and that's why no one ever feels terrific in one. normally like 8,000 feet or something -- >> how much does it get a ticket to board this dreamliner? >> in theory, lots of people will order these and it will cost the same as a plane ticket on any plane. >> here's where i come in. this has been an outsourcing nightmare. boeing wanted to turn seattle into the headquarters where they would farm out, they wanted to find all the best bids around the world to take the best of every country's, you know, manufacturing prowls and put it all together. one thing after another didn't work. one company couldn't come up with the parts on time and another one didn't fit. when you don't have control of the manufacturing right under your nose on something this complicated. >> the 737, the concorde, a new plane has never been delivered on time. >> i can't believe you're arguing over this. >> i know, it's bad, like an aviation fight. >> we're in mediation. >> but it's been really interesting to follow and business schools are following, you know, how boeing trying to do something new and big and bold and -- >> i'm excited about it. >> i think they learned a lot of lessons along the way. sorry, carol, didn't mean to drag you in. >> i'm not getting in the middle. now is your chance to talk back on one of the big stories of the day. can rich politicians relate to ordinary americans? rick perry thinks not. on cnbc, perry went there to describe mitt romney. >> i would say that he ought to go look in the mirror, i guess. >> perry called romney a fat cat. that term is quite toxic these days. cnn/orc poll proves that. the vast majority of americans think bankers are greedy and overpaid. although romney is not a banker, he's as rich as one. up to $250 million. something not only perry points out, but liberals, too. check out the cover of "new york" magazine. that is romney in his younger days promoting his company. he has money bursting from his suit jacket. just because a guy is rich doesn't mean he's heartless. what working americans need the most. >> for me, one of the key criteria in looking at tax policy is to make sure that we help the people that need the help most. in our country. the people who need the help most are not the poor who have a safety net, not the rich who are doing just fine, but the middle class. >> oh, but the left and the right hope that toxic term will stick mitt romney. the talk back question for you this morning. can rich politicians relate to ordinary americans? facebook.co facebook.com/carolcnn. why everyone is so worried about europe and why that worry may be behind us. it's 23 minutes after the hour. ♪ [ multiple snds ng melodic tune ] ♪ [ malennounc ] at northrop grumman, makthworld a feplace. th's value performance. northr gruan. ♪ and the flowers and the trees ♪ ♪ all laugh when you walk by ♪ and the neighbors' kids run and hide ♪ deep inside you, there's a person who refuses to be kept deep inside you. ♪ but you're not ♪ you're the one be true to yourself. what's healthier than that? ...was it something big? ...or something small? ...something old? ...or something new? ...or maybe, just maybe... it's something you haven't seen yet. the 2nd generation of intel core processors. stunning visuals, intelligent performance. this is visibly smart. 27 minutes after the hour. minding your business this morning. today is the day investors have been waiting for. all 27 leaders of the eu are meeting in brussels to come up with a grand plan to save the euro zone. the big question, how much of the debt burden from faltering countries will be transferred to europe's largest banks. details are expected to be announced this afternoon. we hope. right now u.s. stock futures are trading higher ahead of the opening bell. wall street was watching that summit very closely as well as reports on the housing market and manufacturing to come out later this morning. one of the blue chip stocks that could be in your investment portfolio. ford motor company announcing it earned $1.6 billion in the third quarter. the ninth straight profitable quarter for the company. raja gupta expected to turn himself in this morning. face several charges of hedge fund founder. the ceo of ibm is stepping down at the end of the year. ibm shares have soared since he took office ten years ago. be replaced by long-time executive virginia romany. apple's next big product may be a tv that can do pretty much everything. steve jobs talked about it and in his biography saying, i finally cracked it. right now apple tv is just a web streaming device, not a stand-alone television. just ahead, vice president joe biden is not happy after that confrontation with a reporter got ugly last week and then went viral. new developments up next. "american morning" is back after the break. to watch it for us.s thank you so much, i appreciate it, i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money ? if your bank takes more money than a stranger, you need an ally. ally bank. no nonsense. just people sense. at aviva, we wonder why other life insurance companies treat you like a policy, not a person. instead of getting to know you they simply assign you a number. aviva is here to change all that. we're bringing humanity back to insurance and putting people before policies. aviva life insurance and annuities. we are building insurance around you. all right. about 30 minutes past the hour. top stories this morning. more reports of amazing rescues today at the site of that devastating earthquake in turkey. just hours ago crews pulled a 27-year-old teacher from the ruins of a building. that rescue coming 66 hours after a 7.2 magnitude earthquake struck in the eastern part of the country killing 472 people. hurricane rina heading towards a path of resort areas on yucatan peninsula. expected to make landfall late tonight or tomorrow morning possibly as a category 3 storm. clash-to-clash protesters. in oakland riot police tear gassed demonstrators after the crowd hit them with paint. dozens were arrested in atlanta after refusing to leave a downtown park. today president obama is expected to announce a plan to help college graduates who are drowning in debt. encourage students to consolidate their federal loans and reduce their interest rates. vice president biden is now asking for a senate official to investigate the conduct of a reporter from the conservative news organization human events after a confrontational interview last week. that reporter questioned biden about his claim that rape and other crimes would rise if republicans voted down the president's jobs bill. joining me now is howard kurtz, the washington bureau chief of newsweek and "daily beast" and host of "reliable sources." good morning. >> good morning, carol. >> let's talk about what sparked the problem and then we'll talk about it on the other side. >> thank you. >> i picture. >> do you regret using a rape reference to describe republican opposition to the president's bill? >> let's get it straight, guys. >> you didn't use a rape reference? >> listen to me. i said rape was up three times. they are the numbers, go look at the numbers. murder is up, rape is up and that's exactly what i said. >> if the republicans don't pass this bill, then rape will continue to rise? >> murder will continue to rise, rape will continue to rise and all crimes will continue to rise. >> do you think it's appropriate for the vice president to use language in such a -- >> i'm sorry, we got to go. >> howard, the reporter appears to be asking for a photo with the vice president like he was a member, you know, just a member of the public before he asked that question. i mean, is all fair in love getting your question answered or was this guy out of line? >> it was a minor league deception to be looking for a photo op and then spring that question. but, it was in a public place in a senate hallway. he was wearing press credentials and the vice president of the united states should be able to handle that kind of question which, by the way, was a perfectly legitimate question that a lot of reporters and commentators have asked, including cnn's candy crowley when she fautalked to the vice president at state of the union on sunday. >> some say he may have had an agenda. what do we know about him and the organization that he works for? >> sure he had an agenda. a conservative journalist who works for a conservative magazine and styles himself as an ambush journalist. so, these kinds of things happen. a candidate or high officials at a rally and somebody pops out and asks a question, but, again, i thought he asked a question respectfully. i thought the question about vice president's use was a legitimate question and the fact that they're questioning his credentials and going to the senate committee that gives authorization to reporters to go into places like the senate strikes me as a pretty severe overreaction and makes the administration look thin skin. >> why do you suppose joe biden is even bothering with this. >> well, by the way, i thought biden's response was fine, too. he got a little testy, don't screw around with me. let's look at the facts. he is entitled to push back hard. i think this whole incident, which has kind of gone viral and been replayed on cable television a million times and all over the internet has gotten under their collective skin. so, i think the natural human instinct is to say, well, we're going to retaliate. we're going to find out who this guy is and maybe get his credentials, again. but it's really punching down. a relatively minor figure in the journalism world and i think, you know, the smarter strategy would have been just to move on. now, you and i are talking about it. there will be more stories. so, it keeps alive this whole incident that the vice president would probably prefer most people forget. >> it does make you think of the style of reporting these days. you know, you're almost required to get into the face of a politician and to question him so stridently that you evoke some sort of response that is going to become controversial. is that right or wrong? >> well, at the same time, i could remember sam donaldson 20, 25 years ago shouting questions at ronald reagan when the helicopter engines would start going so that reagan wouldn't have to take questions from the press. reporters are aggressive and they don't have access to high officials like the vice president, or the president or the governors. they try to take any opportunity to shout. i'm not approving of this. posing for a picture was definitely deceptive. but on the scheme, wasn't that big of a deal. joe biden should be able to handle this with ease and now he's just extending the story by appearing to try to retaliate against the journalists. >> the end result of all of this is that maybe politicians will just avoid reporters altogether because why get yourself into that mess when you don't have to. you can go on msnbc or fox and say your line of whatever and you don't have to be concerned about being challenged in any way. you just remove yourself from the situation for good. >> well, i think that would be a dangerous development, not just from my point of view as a member of the press who think public officials should be accountable and available to answer our questions, not because we're so important, but because we ask questions on behalf of the public. but also for public officials who are in danger of retreating further and further inside a bubble. one of the reasons rick perry has gotten so much negative attention for his uneven performances in these debates is that he hasn't made himself available to reporters. and the more you stay away from reporters, the more every gaffe or every line that doesn't reflect well on you gets blown up because so little access. so, i think if the vice president answered questions more regularly, maybe it would be fewer incidents like this. again, i'm not defending what this reporter did. but it's the major leagues, you have to hit major league curves. >> i do remember sam donaldson yelling those questions. mr. president, mr. president! >> i can see a few of our own reporters here at cnn doing the same thing. herman cain is shoring up his position as the frontrunner, yes, the frontrunner in the gop presidential race. he just finished first in a cbs/"new york times" poll four points ahead of mitt romney. in another poll, cain finished seven points ahead of newt gingrich and 12 points ahead of romney when republicans were asked which candidate they would most like to have dinner with, which is an entirely different question as who you would like to have as president of the united states. i think herman cain -- >> he's leading the pack in that area, too. >> definitely seems like the most fun to have dinner with. says unexpected way in a jovial fashion. seems happy about everything he says. even things he's critical of, he never loses his -- >> he's a charming guy. president obama carving out time for a chat with jay leno during his three-day swing through colorado, nevada and california. >> please welcome the 44th president of the united states, president barack obama. >> president making his fourth appearance on "tonight show." he shares the frustration of americans who are fed up with politicians putting their party ahead of their country and when it comes to serving a second term, the president didn't seem too concerned about the competition. >> have you been watching the gop debates? >> i am going to wait until everybody's voted off the island. once they narrow it down to one or two, i'll start paying attention. >> i bet he's paying attention right now, but that was a great answer. it was funny. the president was about ten minutes late because his motorcade got stuck in a traffic jam on highway 101. his security team failed to shut down the freeway. still ahead, halloween. october 31st, right? maybe not for long. a connecticut lawmaker wants to change the date every year, we'll tell you why on the other side. might be interesting. words cannot describe. check this out, a man has turned his house into a stunning halloween light extravaganza, but his neighbors are not exactly enjoying the treat. up next, the best halloween house light show ever and the meanest, baddest and unhappy neighbors next door. 39 minutes after the hour. people have all kinds of retirement questions. no problem. td ameritrade has all kinds of answers. call us for quick help opening your new ira. or an in-depth talk with a retirement expert. like me. stop by my branch for a free retirement check-up. retirement hows and how-muches? whens... and what-ifs? bring 'em on. it's free. you're gonna retire. and we're gonna help. retirement answers at td ameritrade. roll over your old 401(k) and get up to $500. eerie music to be playing over the shots of the capital. >> days away from halloween. >> i get it now. mostly cloudy in washington, 53 degrees, showers expected later. 72. >> my kids say it's pooky. he wants to change the date for halloween so it always falls on the last saturday in october. why is he going there? why mess with halloween. he believes it will make the experience better for kids, safer for parents and i don't mind it. i think saturday halloween is a nice idea. i love halloween parties. >> you would. >> i love getting dressed up and stuff. >> but out in the burbs it's like halloween for a week and a half and parties this weekend and next weekend and it goes on forever and that's good for the economy, too. meantime, this house in california is attracting crowds with a halloween light show that makes pumpkin seem poultry. jeanne moos has the story. >> reporter: that's no motion detecting, antiburglary device. this is a talking house. practically a dancing house. ♪ >> reporter: the website gawker christened it the awesome halloween light show you're glad isn't on your block. >> in a place perhaps you've seen in your dreams. >> reporter: or in your nightmares. the house plays one number taken from the tim burton film "the nightmare before christmas." here's the house version. ♪ this is halloween halloween, halloween ♪ >> reporter: this is the family that lives in the halloween house in riverside. kevin, prefers we don't use his last name. he did have a nice conversation with him. at his day job he installs fiber optics for verizon. he takes a week off to put up the l.e.d. lights on his own house and he uses his spare time over a period of months to program them. he started the tradition back in 2008 with "thriller." ♪ this is thriller >> reporter: does something different every year. and this year's grave yard smash is party rock anthem. ♪ cars cruise by. kevin's house attracts a crowd of 300 or so people watching the nightly show. one night a teenage girl showed up on his doorstep around midnight and asked if this was the house with all the lights and could he please turn them on. kevin declined. to us it may be funny, are the neighbors amused? folks seem to like it, although one was worried it would get too popular. online it's a smash, epic, incredible, awesome. that is kevin's daughter leaving the house mid-performance. he doesn't do christmas because he's too tired from halloween. is it an eye sore or an e eyegasim? jeanne moos, cnn, new york. >> she's funny. that's funny story. i would like it if it's on my street. >> you would? >> i totally would. >> of course you would. >> i like whimsical. >> that would drive me insane. it looks cool from afar. morning headlines coming your way next. so if i didn't know better i'd say you're having some sort of big tire sale. yes we are. yeah. how many tires does ford buy every year? over 3 million. you say you can beat any advertised price on tires? correct. anywhere? yes. like this price? yes. riously? yes what about this one? i'll beat it. this one? s we will. right, i only have one more question for you...this one? (laughing) yeah. get $100 rebate when you buy four tires. 100 bucks! only at your ford dealer. 3 million tires. 11 major brands, fiona's kind-of-nice. i don't know why you're not here. it's 48 minutes after the hour. here are your morning headlines. right now u.s. stock futures are trading higher ahead of the opening bell. wall street are watching the eu summit very closely today as well as the economic reports on the u.s. housing market and manufacturing. those are all out later this morning. just in to cnn, gupta turned himself in to the fbi. he will face federal charges related to the insider trading. things got nasty overnight in oakland as "occupy" protesters returned to square off with riot police. the crowd was tear gassed after the cops say they were hit by paint. today president obama is expected to launch a new plan to lower the cost of paying back those student loans. among the proposals allowing millions of graduates to consolidate their federal loans and reduce their interest payments. it's a waiting game for people in cancun and cozumel as hurricane rina takes aim. nearly a category 3. she is packing nearly 1 110-mile-per-hour winds. it will get stronger before it hits late tonight or earl etomorrow. an 80% chance of rain in st. louis. the rangers are up 3-2 in the series and looking to clinch their first championship ever. that's the news you need to start your day. "american morning" back right after this break. so i like control in the rest of my life... especially my finances. that's why i have slate, with blueprint. i can create my own plan to pay down large purchases faster... or avoid interest on everyday items. that saves me money. with slate from chase, i'm always in control. financially, anyway. get slate with blueprint and save money. call 855-get-slate today. welcome back to "american morning." every year 130,000 people are diagnosed with an illness that could be cured with a bone marrow transplant. but finding the right donor, as we know, is challenging for anyone, particularly challenging for mixed race americans. what an interesting story. here's soledad o'brien. >> one of my birthdays at chuck e. cheese. >> you love birthdays at chuck e. cheese. >> reporter: she just wants a normal childhood. you look like the perfectly healthy 11-year-old girl. >> yeah. >> reporter: do you feel okay? >> yeah, i'm okay. sometimes i get my ups and downs. you have aches and pains everywhere. but it still hurts. >> reporter: she has milodisplastic syndrome or mds which means her bone marrow doesn't produce enough blood cells. it could lead to leukemia, if she doesn't get a bone marrow transplant. how did it feel when they first diagnosed her? >> as a dad, it took everything out of me. >> reporter: finding a donor match is always difficult, but it's more difficult for her because she's biracial. >> with mixed race people why it's so difficult is that there's so many possible combinations. so, just tissue type is very complex. that's one level. then if you match that with half of one ethnicity and half of another ethnicity, the possible of number combinations just explodes into the millions. >> reporter: outreach groups like mixed marrow are trying to lower those odds. >> me being mixed race myself there wasn't any current organization or outreach specifically targeting the mixed race community. woo do community events and also do college events and do the donor drive there's. >> if you're of a mixed race background, consider joining. it's really a wonderful -- >> i'm in. you talked me into it. >> perfect. >> reporter: the cheek swab is easy. waiting for a match is the hard part. how does that make you feel? >> feels like you're cut off from the rest of the world, what they get to do and what you can't do. >> we don't want a pity party and we don't want any sympathy case. we want a cure. >> that's a bone marrow transplant. >> that's the only cure, a bone marrow transplant. >> so we need a donor. >> reporter: soledad o'brien, cnn, minneapolis. can rich politicians relate to ordinary americans? i will read some of your responses, next. it's six minutes until the top of the hour. ♪ been torn apart ♪ got so many scratches and scars ♪ ♪ maybe time can mend us together again ♪ ♪ it's not what we've done but how far we've come ♪ ♪ i know that we will recover [ male announcer ] here when you need us most. 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