Transcripts For CNNW American Morning 20111121

christine is busy preparing a thanksgiving feast for thursday. >> it's a full week. >> and ali is preparing to eat one. >> that's right. >> so they're off today. i'm carol costello along with alina cho. welcome to "american morning." first, new details in a plot to plant pipe bombs in and around new york city. 27-year-old jose pimentel, arraigned and made bail an hour ago. a muslim convert to plotted to bomb nypd pa control car, post office and returning u.s. troops and he was doing much more than just talking about it. our deb feyerick is here to tell us more and it appears this lone wolf was acting alone. >> reporter: absolutely and under surveillance about two years. jose pimentel, 27 years old, preparing as many as three pipe bombs. had he built and executed them properly he could have killed upwards of a dozen people. before arrested the nypd bomb experts built and detonate add similar device. you see it on the screen. they showed it last night. the device was detonated inside a car. you see the amount of damage it does cause but gives perspective, because they have time to construct a similar device. federal authorities were not involved in this operation, run entirely by the new york police department. new york's top cop says the suspect was radicalized by the teachings of cleric anwar awlaki and because of his death, pep p pimentel's plot was advanced. >> -- he relied on a particularly notorious article called "how to make a bomb in the kitchen of your mom." >> reporter: and that article came from the al qaeda-inspired magazine "inspire." the publisher of that magazine killed in that same strike. you can see components the nypd was able to put together. ba basically he was using a pipe bomb a timer, bought household items at home depot including about 700 matches he was able to scrape off as part of that bomb. again, a lot of things would have had to go right for this to detonate, but had he placed it where he said he was going to, that is in the vicinity of u.s. service personal nell returning from iraq, at police stations, post offices, he was going to put shrapnel it in the form of nails, it could have done great damage. police stepped in, realized he was going operation's, not just talk anymore and in fact starting to drill holes in that pipe bomb, and that's when they swept in. they arrested him on saturday. >> that device looks pretty crude yet you're saying it could have done a lot of damage. are we getting a sense, you say operational, how close he was to launching an attack? >> reporter: interesting. he had all the ingredients and started to drill the holes according to the magazine article in "inspire" that one of the final stages of preparation for this, but his talk had accelerated. he was talking much more about jihad. talking about waging holy war against the united states, and so they really felt they could not take a chance, because, again, it's one of those things that, nobody would know whether in fact he was able to put this together. now that he's been arrested. but if he had, he could have caused mayhem and chaos. certainly at a very busy time of year and sent a lot of panic to people. >> a couple of rather odd things. one, the fbi really wasn't involved, although at some point the new york city police department and the fbi had conversations. number two, that mayor bloomberg chose to show a video of what these pipe bombs could do and peter bergen saying, if this is all al qaeda has to offer, we don't worry much. >> excellent points. one thing you have to keep in mind, of all the terrorism case ice followed over the last ten years, we have never seen a video before a trial. usually it happens during the trial, and usually certainly in federal cases that kind of video is safeguarded. jock so they don't just so it. but, again, they didn't want to take a chance. it's not clear exactly when the fbi was in fact contacted. ed mayor was very, very careful last night to mention fbi director robert mueller by name and his theory on terrorism and how you stop it, but it appears that the feds were really shut out of this entire operation. so whether the nypd simply wanted to do it on their own, go it alone and sort of present it to the public. i'm sure we'll hear more about that today. >> i'm sure we will. deb feyerick, thank you. the sounds of surrender. it appears the super committee, oh, yeah, charged with finding ways to cut $1.2 trillion from the federal budget, and they have all but failed in their mission. with a wednesday deadline looming, their focus is putting the most positive spin on what they could not accomplish. cnn congressional correspondent kate bolduan is following developments and is live in washington. i was going to say, do you know how angry voters are? they're probably resigned because they probably expected this. >> reporter: this seems to be one more bit of evidence that washington, if you want to say, or congress, specifically, is just broken. barring an 11th-hour breakthrough of some sort, the super committee is headed towards failure as talks have fallen apart and no evidence of last-minute negotiations taking place. the gloomy outlook is quite evident in the change in tone among members of the super committee themselves. many took 90 sunday morning talk shows and much of the conversation there, markedly shifted from we're push for a deal and hopeful for a deal for who should be to blame when the committee fails. listen to republican senate jon kyl and the co-chair, senator patty murray. >> look at the democrats' position, we have to raise taxes, pass this jobs bill. the only real breakthrough here, the word breakthrough was used by my colleague democratic whip dick durbin, was the republican offer to actually increase the amount of revenue -- >> let me just say -- >> -- through the tax code which would largely fall on the upper two brackets ever taxpayers. >> the truth is at this point today democrats have made some really tough decisions and come to some pretty tough choices that we're willing to put on the line, on entitlements, on spending cuts, but only if the republicans are willing to cross the line on the bush tax cuts and be willing to say, revenues have to be a part of the solution. >> reporter: clearly, both sides blaming the other for not being able to reach agreement around the required minimum of $1.2 trillion in deficit savings. the negotiations breaking down on the same issue that has largely held up talks to this point, which is taxes. taxes, revenue, need to be part of any "ball,ed approach" they like to say to reducing the deficit. republicans are very opposed to tax increases unless it's an effort to bring down rates. the only question seems to be, how and had do they make a formal announcement they couldn't pull it off. many say today. this is today, a preliminary deadline. the committee is required to post its agreement, if it had one, and also post its official debt savings estimate two days before the hard deadline, which is wednesday. >> i bet demming aocrats and republicanens won't make that announcement together. bottom line, if the committee fails, what's gets cut what gets spared? >> reporter: if the committee fails, across the board automatic cuts called sequestration, everybody can forget about at 6:00 in the morning. too early for that. what would be cut, kind of get the knife would be kind of across the board spending cuts. defense would be hit very hard. about half of the budget cuts would hit the defense budget. other areas of spending, education, transportation, immigration. just to name is few would be hit, because they would automatically be hit by $1.2 trillion in deficit savings, go into place in 2013, but some areas are exempt from these tough cuts. areas generally speaking that would help low-income families, would help the poor. barred from automatic cuts of social security, medicaid, food stamps and veterans' benefits and one area that will also be hit is also medicare, but there's a cap on how hard medicare can be hit. so it's hidden areas that were supposed to be painful in an unacceptable alternative that was put in place, carol, of course to motivate them to do the job. seems they could not pull it off. >> guess not. kate bolduan, many thanks. coming up later. talking to two members of the super committee. arizona senator jon kyl and masses mass democratic senator john kerry. later today the obama administration plans to announce new sanctions against iran. u.s. companies already banned from doing business there. diplomatic sources tell cnn the new sanctions are intended to stop foreign countries from conducting business with iran's oil and gas industry and any nation that does will be banned from u.s. markets. egypt erupting again this morning. protesters filling cairo's tahrir square for a third straight day. ten people killed in brute's clashes yesterday. hundreds of army officers and police firing tear gas and rubber bullets. many protesters brutally beaten. military rulers say elections will go on as planned in seven days, just a week, but some egyptians worry they traded one tyrant for another. ben wedeman is live in cairo for us. ben, good morning to you. >> reporter: yes, hello, alina. you can see, tahrir square not packed at the moment, but more and more people are coming apparently groups of university students are on their way and, of course, they are here to protest against what's called the supreme council for the armed forces which took over if hosni mubarak on the 11th of february this year. the worry of many egyptians is that now they won't leave power, won't go back to their barracks. we did hear from a spokesman of the military counce yil saying elections scheduled for one week from today will go ahead as planned but already several candidates, several political parties, suspended their campaign in protest over the crackdown in tahrir square. yesterday we were out in the street. there are rocks and tear gas flying all over the place in the streets to the east of here. those streets, of course, leading to the ministry of the interior. the ministry of the interior still very much a symbol of repression. many victims recalled in the days of mosinee mubarak, where people would go, never come out, just disappear into that building's dungeon. it really is a symbol of hate which many egyptians can unify. that's what we're seeing here in this square. really a protest against a regime that hasn't really changed alina? >> quickly, just to be clear, and you touched on this. remind our viewers what people are so mad about. we remember those massive demonstrations earlier this year that led to the fall of mubarak. has are they so upset about now? >> reporter: well, they're upset that, they feel, they thought they had brought down a regime, but all they really did, they decapitated it, removed the head, and it's been replaced by this military council. all of the members of which were obviously promoted during the 30 years of mubarak's reign. in fact, wuk wikileak quoted, describing the head of that council, the field marshal mohammed jose zentalli as mubarak's puppet -- poodle. sorry. they feel after all this, nothing's really changed. the regime is the same as it was on the 11th of february, after all of those massive demonstrations here in tahrir square. alina? >> ben wedeman live in cairo this morning. ben, thank you. a viral video that has two police officers in hot water. they're on leave now after blasting peaceful -- peaceful ash ash occupy protesters with pepper spray on the campus at uc davis. students are saying they will go all the way to the top. and video of a nascar crowd booing the first lady. that's ahead. did you see this? jon huntsman who may be trailing in the polls but certainly has lost his sense ever humor. the candidate's cameo on "saturday night live" when "american morning" returns. it's 14 past the hour. capital one's new cash rewards card gives you a 50 percent annual bonus. so you earn 50 percent more cash. if you're not satisfied with 50% more cash, send it back! i'll be right here, waiting for it. who wouldn't want more cash? 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[♪...] >> announcer: now get a $250 airfare credit, plus save up to 65%. call 1-800-sandals. certain restrictions apply. 17 minutes past the hour. welcome back. two university of california-davis police officers on administrative leave after this video. this video surfaced. you see cops casually sprays peaceful occupy protesters in their faces at point-blank range friday night. the officers were trying to clear out the occupy cast and felt trapped by the protesters. 11 protesters required treatment. two landed in the hospital. hundreds of protesters calling on the school's chancellor to resign. >> well it wasn't exactly the warm welcome the first lady and dr. jill biden were expecting. take a look. >> and now, please welcome our grand marshals, sergeant andrew berry and family, first lady the united states michelle obama and dr. jill biden as they deliver the most famous words in motorsports. >> gentlemen, start your engines! >> michelle obama and jill biden greeted way chorus of boos by nascar fans at the ford 400 yesterday, the grand marshals of the season's last race. the two were also there to honor u.s. troops and their families and bring awareness to the first lady's joining forces program, an initiative to hire and train veterans. actress meila kunis accompanied a soldier, accepting an invitation. >> and justin timberlake did that, too. making another wish come true. >> mila looked beautiful and her date, i must say, handsome, too. >> yes. and let's go to bonnie schneider with the weather. >> looking at southern california, a place that doesn't usually get a lot of rain. over the weekend records shattered in santa barbara and in los angeles. look at this video coming to us from l.a. you'll see the roads covered with water in a lot of areas. some flooding, some problems, and people cleaning up their areas, their homes and businesses due to inundation of water. the water will be a little better today but note almost an inch of rain yesterday. now we're getting rain across the northeast, slide fring from york city into rhode island. intermittent showers in the new york area but more steady and heavy downpours in the midsouth. so memphis, just facing a lot of wet weather. driving on i-40, getting an early start to your holiday week, you'll be facing severe downpours. possibly hail and very heavy downpours here in texas. dallas, as that front comes through, watch out for severe storms. they could get very strong later this afternoon, low pressure rising bringing a threat for flooding even to memphis and more towards nashville and affecting travel. one of the busiest travel weeks of the year. delays across the country, from new york to texas, back out westward. most in the morning. however, in the afternoon, dallas and memphis could face strong storms and that could cause big slowdowns. we'll keep you posted here on cnn. back to you. >> thank you, bonnie. >> sure. the next list is a new cnn program focusing on some of america's most creative minds. each sunday dr. sanjay gupta profiles people on the cutting edge of technology and innovation. this week sanjay looks at someone who is pushing the culinary envelope. watch? >> really just someone who xplorp sxpors explore the your expectations. we use centrifuges, lasers, we're actually starting to work with super conductors. if you look at the limitations of creating new products you're only limited by the technology you have to work with. the real thrill with the food experiments we do is creating something that's impossible. creating something that just shouldn't be. >> anything involving food is good for me. you can catch "the next list" 2:00 p.m. eastern time next sunday. ahead on "american morning," mitt romney ready to take a big gamble on iowa. a move that could make or break his candidacy. we'll tell you why hybrids might be the best bet for keeping you safe in case of a crash. up next on "american morning." 22 minutes after the hour. ♪ [ male announcer ] sometimes, a hint is all the wrapping a gift needs. is that what i think it is? ♪ [ male announcer ] the lexus december to remember sales event is here, but only for a limited time. see your lexus dealer for exclusive lease offers like a complimentary first month's payment on the 2012 is 250. congratulations. congratulations. today, the city of charlotte can use verizon technology to inspire businesses to conserve energy and monitor costs. making communities greener... congratulations. ... and buildings as valuable to the bottom line... whoa ! ... as the people inside them. congratulations. because when you add verizon to your company, you don't just add, you multiply. ♪ discover something new... verizon. 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"minding your business" this morning, u.s. stock futures pointing to a lower open. last week the dow dropped nearly 3% and the s&p 500 fell about 4%. fears about u.s. budget talks as well as the debt crisis in europe. spain has a new leader, mariano won 45% of the popular vote topping his agenda preventing the debt problems in greece and italy from spreading to spain. in recent days concerns about spain's economy pushed bond yields closer to the key 7% level at which other companies were forced to seek international bailout. good news for drivers here in the united states, the national average cost for a gallon of gas is $3.38. down 5 cents from the past two week. the survey says slumping demand and lower crude prices helped drive prices down. ahybrids. 25% better protecting people from getting hurt in a crash. because they're heavier than convention the cars and that extra mass is an advantage during an accident. mary kay. the company presented beauty consultant with its legendary pink cadillac. the only man ever to earn the car. the caddie is a symbol of high achievement and presented to the top mary kay sales consultants. "american morning" will be back after a break. welcome to idaho, where they grow america's favorite potatoes. everyone knows idaho potatoes taste great. but did you know they're good for you too? they're high in vitamins and potassium. and idaho potatoes are now certified to carry the heart checkmark from the american heart association for foods low in saturated fat and cholesterol. so they're good for my family, and for yours. heart smart idaho potatoes. always look for the grown in idaho seal. who's commander in chief material? republicans getting ready to do battle on national security, live on cnn with six weeks to iowa on this "american morning." and welcome back. it is 30 minutes past the hour. time for this morning's top stories -- a suspect arrested in a new york city pipe bomb plot. the mayor announcing an alleged terror plot involving an al qaeda sympathizer who planned to target the nypd and returning u.s. soldiers. members of the bipartisan debt super committee appear ready to throw in the towel. a weekend of talks fail to produce a last-minute compromise on cutting $1. trillion from the federal budget. talks are said to be focused on thousand announce the failure to reach a deal. officials say that announcement could come today. do business with iran and you don't do business with america. summing up the obama administration's latest sanctions against the iranians announced today. diplomats telling cnn, anyone who does business with iran's gas and oil industry could be blocked from conducting business in the united states. with about six weeks to go before the iowa caucuses, mitt romney is making a late push in the hawkeye state while newt gingrich tries to make a splash with his plan to reform social security. paul steinhauser live in washington for us. paul, begin with that big national securities debate in washington tomorrow night right here on cnn. give us a preview. >> reporter: it is going to be just a few blocks from where these republican candidates hope to some day live, the white house. held in constitution hall just down the street from 1600 pennsylvania avenue and major candidates all there. you mentioned, yes, national security one of the top, its foreign policy and of course the economy also a topic for the candidate tomorrow night right here in washington, d.c. it's going to be moderated by a guy named, i think you know, wolf blitzer, hosts "the situation room." known in the political world and here in washington. yeah, i think people are familiar with him. the format. blitzer will ask questions coming from the audience, from the heritage foundation and american enterprises, two republican think tanks that cnn is teaming up for the debate on and questions from the social media as well. interesting. just six weeks to go until the first votes in iowa. >> i hope you're ready, paul. i want to talk a little more about mitt romney. you know, he's rolling the dice big on iowa this week. he's opened up an office i understand, he's also launching some tv ads. does this mark sort of a departure from the last-man standing approach to something a little more direct and proactive? >> it does seem he's stepping it up. the first state to vote january 3rd. you're right. a laid-back strategy. after debate on tuesday he goes to iowa. his campaigned opened up a pretty large headquarters, office, in iowa. even though he hasn't gone there much, he's doing well in the polls. let's go back four years ago. he spent a lot of time and money in iowa. it didn't work out. mike huckabee won's in iowa then mccain in new hampshire and it was pretty much over for mitt romney. does he put it on the line this time or not? we'll see. looks like he's stepping it up there, alina. >> paul steinhauser, great to see you. thank you. tonight right here on cnn, the republican candidates for president gather just steps from the white house, as paul said, for this debate on national security and the economy, co-founded by the american heritage foundation tomorrow night right here on cnn moderated by our friend wolf blitzer. so send in your questions. >> he was at the soul train awards the other day. >> i know he was. >> i love that. a picture of him online. >> wolf does everything. >> he's a good dancer, too. >> he is. >> i'm laughing picturing that. he really is a good dancer, really. you have to hand it to jon huntsman. he has a strategy and he's sticking to it. win new hampshire. huntsman's been campaigning almost exclusively in this state. he took a break and went to the big apple for a cameo on "saturday night live" and he still had new hampshire on his mind. >> you seem to be putting all of your eggs in one basket, new hampshire. are you worried you might alienate the rest of the country? >> seth, i love all of america. from dallas, texas, to manchester, new hampshire, from the majestic rocky mountains, to lake winnipesaukee, from the lakes to the outlet walls to malls in new hampshire. >> you can't help but mention new hampshire. >> it's not unpurpose. i would never tie myself to one state. i like to spread my wings and fly like the purple finch. >> which is, of course, the state bird of new hampshire? >> know a lot about new hampshire? >> i'm from new hampshire. >> well, that makes sense, because you're kind and good-looking. classic new hampshire. >> jon huntsman is a proud new hampshiren, and i can't tell you we do not fall for easy compliments. >> that's because you're wise like a dartmouth professor. >> all right. well, thank you so much for coming. >> are your parents registered voters? >> my mom's a democrat and my father's an independent. >> say hi to your dad for me. >> all right. >> he has a sense of humor. >> he looked good on that set, by the way. looked comfortable. strong. >> he looks strong even at 1% but he's in there trying. >> he is. got to hand it to him. >> tune in to cnn 6:00 p.m. eastern. jon huntsman sits down with our john king prior to the republican debate tomorrow. probably talking about new hampshire. >> probably talking about the granite state, and the purple finch. ahead on "american morning," were computer hackers able to take down a vital public utility right here in the united states? 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[ male announcer ] it's practically yours. but we still need your signature. volkswagen sign then drive is back. and it's never been easier to get a jetta. that's the power of german engineering. get zero first month's payment, zero down, zero security deposit and zero due at signing on any new volkswagen. visit vwdealer.com. and zero due at signing on any new volkswagen. where they grow america's favorite wpotatoes. idaho, everyone knows idaho potatoes taste great. but did you know they're good for you too? they're high in vitamins and potassium. and idaho potatoes are now certified to carry the heart checkmark from the american heart association for foods low in saturated fat and cholesterol. so they're good for my family, and for yours. heart smart idaho potatoes. always look for the grown in idaho seal. new this morning, it appears a deadly incident in a tailgate area outside the yale harvard football game over the weekend was an accident. the lawyer for the man who was driving a u-haul that hit three women and killed one said the vehicle malfunctioned. police say the driver passed a sobriety test. the driver was hauling beer kegs to the tailgate party when he lost control of the truck. the university of miami announcing a self-imposed ban. the school is under investigation by the ncaa over allegations that a former booster, a convicted poncesy schemer gave cash, jewelry, even prostitutes to players. the team plays its last game friday. in what could be his last game on u.s. soil, david beckham is a champion. the l.a. galaxy won the mls cup beating the houston dynamo 1-0. beckham and donovan teamed up for the gold and won the cup. beckham shocked the league by coming to the u.s. his contract expires next month. >> out on a high note. still get to gaze upon him, because i'm sure the media will cover him even though he's not playing for the l.a. galaxy any longer. >> i have a feeling. other news a federal investigation under way into an alleged cyber attack that may have causesed the public water system in springfield, illinois to shut down. the hacker has been traced to russia. may be the first successful attack of its kind. our vulnerable are the nation's water and power systems to cyber or terror attacks? a software security firm worker is with us, a former scientist. good morning. >> good morning. good to join you. >> nice to have you here. a lot of people are concerned about this. first off, do we know absolutely for sure this was a cyber tra ? attack? >> we don't know anything for sure absolutely about the illinois event but it seems likely. they're admitting that a pump broke, but they're not saying how and the dhs is denying anything cyber happened, but the case itself sounds very plausible. there's a researcher's reputation on the line. i personally think something happened, and the scenario which he describes from a semiclassified report is extremely plausible, and it's not something you would make up. >> okay. let's assume it was a hacker that fooled with this illinois water plant. you know, so they hacked into a remote system, systems, and b n burned out a water pump. doesn't seem any real damage was done. could this has been a test? why would someone want to do that? >> well, this thing about hacking into industrial control systems is that they're very -- you had a picture earlier that sort of showed the pipes and everything. these are very complex systems. there's no one button you can hit that says, do big damage here. so if you're hacked a number of water plants, you're probably going to spend time experimenting with them a bit to find out how to cause damage, how to affect them at all and in some cases mess up and flip the switch a few too many times and burn out the pump in question. so there are a lot of possibilities here. we know this sort of thing happens all the time. we know that they're not secured the way they should be, and the fact that something could happen that would affect your water supply is extremely scary, i think, for a lot of people, and there really hasn't been a lot of discussion around the security of these thing. in this case, no supply chain discussion, no discussion what you do when something happens. it can be very difficult. >> let's just talk about the computer supposedly used to doed hacking. apparently traced to russia. does it make sense to you that someone in russia would do this to a water plant in the united states? >> well, yes, but i think the fact that the computer was in russia is probably beside the point. it could have been, you know, a romanian going through china, through russia and then finally into the united states. any hacker who's looking to do real damage is probably coming from somewhere other than where they say they're coming from, which is another thing that's quite scary, because this could happen to you and you have no idea where to go next. >> in this case, workers detected glitches. glitches in the system about two months but i guess didn't realize what was happening. so are they trained to look for this kind of stuff? >> i think in this case, it's great news that someone actually discovered something was going on that was a little different from normal and then attributed it to the cyber arena. it's not normally the case that would you say, hey, our pump broke. must be the computer hacker who did that. so it's actually in some ways good news someone was paying attention enough to discover something like this, which is usually very subtle. if you look at other versions of these attacks, they go to great depths to hide what it is they're actually doing, where they are on the systems, and that can be something that no industrial engineer would actually discover until it's long too late. >> okay. so just in protecting our utilities, and maybe even our railroads from these kinds of attacks, i mean, is there someone out there trained to do that, first of all? and secondly, i guess, are we going to see more of these kinds of attacks? >> well, we did see one this weekend on south houston. the city had a water/sewage plant connected to the internet and a hacker named proof, with a zero, hard to say, posted screen shots of their control systems on the internet. so we know this stuff does happen. we know sometimes it's not secured the way it should be. i think there's a long way to go and there are government teams in charge of securing this stuff. you're goinging to see to see the ics, industrial control security, american response team, responsible for this kind of stuff but don't have the budget to go through and secure everybody. it's just not a solvable problem that way. >> that doesn't make me feel any better but at least i understand it more. thank you so much for joining us this morning. ceo immunity inc. and a former nsa scientist. more than a game. thousands of americans make a living playing online poker. and now many of those people are losing their sole source of income after a popular site has been shut down for illegal gambling. we'll have details coming up. 48 minutes past the hour. what you need to know to start your day. a suspect arrested in a new york city pipe bomb plot. mayor mike bloomberg last night announcing a terror plat involving an al qaeda sympathizer, planned to bomb nypd police cars and returning soldiers. and failing to reach a detail on cutting $1.2 trillion from the federal budget. protesters filling cairo's tahrir square for a third straight day. people were killed over the weekend. the new leader says elections will go on as planned in just a week. a special panel investigatinged penn state sex abuse allegations will speak today. the panel was established six days after ex-coach jerry sandusky was arrested for allegedly abusing as many as eight little boys. and they claim they've been hacked, stopped and slandered. now celebrities it like actor hugh grant are getting a chance to confront a british tabloid in a hearing on media standards and ethics. bruce springsteen and the e street band hitting the road next year according to the band's website. their first tour in three years an the first since the death of saxophonist clarence. hinting a new album is in the works. great news. that's the news to start your day. "american morning" is back after this. it's 51 minutes past the hour. welcome back to "american morning." a popular online poker site is accused of running a global ponzi scheme. >> called full tilt poker dotcom, shut down. former players are out thousands of dollar, some using winnings from the site as their only source of income. so our poppy harlow is here with details. hats this all about? >> interesting. happened earlier in the year. not just full tilt, a lot of big poker online and shut down. people can't play the game online. we found out for a lot of people across this country it was more than just a hobby. it was their job. so we took a look at one guy out thousands, and he's representative of a lot of people betting on the game as their source of income. take a look. >> reporter: how much money did you make playing poker online? >> about $300,000. >> reporter: in how long? >> three, four years. >> reporter: in the online poker world, shawn busse was known as jordan kicks. >> on april 15th i was playing poker like any other day, and all of a sudden we just couldn't play inmore. the money was frozen. >> reporter: it became known at black friday when the justice department seized full tilt poker's operations and froze players' accounts alleging the company was operating a global ponzi scheme. >> i think this is uncharted territory. for the first time players' money has been seized. >> reporter: the doj says full tilt owed some $390 million to players around the world including roughly $150 million to u.s. players but only $60 million in it's coffers and alleges owners paid more than $440 million over a four-year period. full tilt fired back saying it's in no way a ponzi scheme and committed to paying players back. out 60 grand, shawn busse is not convinced. >> this was the site they made their income, had relationships with people there, they trusted them, and you know, they basically -- >> reporter: reaching an agreement with the department of justice to acquire full tilt poker and says it will reimburse players outside the u.s., but for american players, like shawn, they'll have to apply to the doj to get their money back. full tilt's current owners have not yet accepted the deal. >> i try not to get my hopes up. i consider that money lost. if i get back a nice bonus. >> reporter: the general feeling, oh, well, people can't play the games online anymore. for tu was a lot more. this was your livelihood? >> my job. yeah. i feel like my job's been taken away from me. this is my source of income the past four years. >> reporter: and shawn is not alone. according to h2 gambling capital, about 8% of u.s. online poker players, or about 30,000 people in this country, made a living off the game. many have moved abroad, where online poker is alive and well. what was your best day? >> playing online 2009, second play for $163,000 in one tournament. poker's been an american pastime for however many years. >> reporter: an american pastime? >> sure. everyone loves to play poker. >> reporter: guys, we also talked to a number of other players. ethan ruby used his winnings to start a college fund for his kids and buy a hot tub. he was in pictures. and from north carolina, out $28,000. lost a job in the mortgage industry and turned to this. you look at someone like shawn in the piece, in college, 23 years old, making 100 grand a year. look at the job market right now. he said, all right. poker is better for me right now than college. he dropped out to play. upside of this, he's back at school. >> temperature how thll me how scale? the dealer always wins pup. >> an alleged ponzi scheme, right? full tilt fought back saying this isn't a ponzi scheme. what the doj said when they shut the company down was, you owe american players $150 million, and we looked at your books and you've got $60 million and we look at what the doj says you've been paying out to owners. something's not right here. interesting, aun the online sites in the u.s. were shut don april 15th, black friday. then a number of them. allowed to operate overseas. full tilt poker itself hasn't been able to operate at all. unlike the other sites, the department of justice says not only is what you're doing in the u.s. by operating online poker illegal, but we think you're operateding a ponzi scheme. we think this doesn't smell right. again, the company says time and time again we're not. paying close attention to see if there's a prench company settlement which could result in the u.s. players getting their money back. they'll have to fight the department of gist is and that could take a long time. >> good luck with that. poppy harlow, thank you. and coming home for the holidays. new details about a foil pipe bomb plot in new york city and what it could say about the state of al qaeda. i heard they found energy here. it's good. we need the jobs. 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are store credit cards a good idea? we've ways to out-smart the stores on this holiday shopping season on this "american morning." -- captions by vitac -- www.vitac.com and good morning to you. it is monday, november 21st. happy monday. ali and chris tootine have the off. >> counting down to friday. >> thursday, thanksgiving. friday a day you lay around and feel you're going to explode. >> after we do the show. right? >> right. welcome to "american morning." i'm carol costello along with alina cho. >> up first, new details in a plot to plant pipe bombs in and around new york city. 27-year-old jose pimentel behind bars, arraigned hours ago. an al qaeda sympathizer and muslim convert who plotted to bomb nypd patrol car, post offices and returning u.s. troops and doing much more than just talking about it. our deb feyerick is here with the latest. good morning to you. this is a suspect who actually hit the nypd's radar about 2 1/2 years ago. he had already become radicalized and views so extreme, police say it even made like-minded friends nervous. allegedly talking about going to yemen and changing his name to osama hussein after his the death of osama bin laden and saddam hussein. he was uses supplies such as matches and christmas lights. this weekend he started drilling holes in the pipe which according to instructions is the last mechanical step in building the bomb. >> the suspect was a so-called lone wolf motivated by troops in iraq and afghanistan as well as inspired al qaeda propaganda. not part of a larger conspiracy emanating from abroad. he represents exactly the kind of threat fbi director robert mueller and his experts have warned about. >> reporter: now, the fbi and other agencies were not involved and large will you inaware of this two-year long investigation even though the alleged target did include u.s. service personnel. nypd bombmakers actually built and detonated a similar device inside this car. look at it right there. this assumed that pimentel's device would have worked. a counterterrorism expert tells me that had they been done properly, had they didn't built and placed in the right location, they could have killed upwards of a dozen people, depending on how they were situated. pimentel pleaded not guilty. a joint strike in september accelerated this alleged plot taking it from aspirational to operational. >> wow. all right. deb feyerick, thank you very much. we want to talk a little more about this with fran townsend, our cnn national security contributor and former security advisers to president bush. welcome. >> hi, carol. >> peter berger, our expert on al qaeda, says if this is the best al qaeda has to offer, we shouldn't worry. do you agree? >> the problem, we can say that in the media. i remember being responsible for preventing these thing. you say to yourself, one idiot just has to get lucky. look, this was a long investigation, two years with an informant. i'm a little troubled by the fact the fed, the fbi was not involved. after all, this was a targeting of u.s. service members and others. inspired by al awlaki, now deceased. the feds may have been able to help here. that said, they had a successful arrest and we'll see what we learn from it. >> why do you suppose the feds were not more involved? >> carol, look, as you well know, as our viewers know, the fbi and local police departments are often very competitive. we don't know very much about the informant involved. what the basis of investigation and the involvement of the informant was. there are a lot of reasons and guide lives the fbi follows that are different for the nypd. whether they were just not told about it or whether they had some objection to the way the investigation was handled, we have yet to learn that. >> and he'll be tried in state courts, not federal level, because, of course, he's not charged way feder ed with a fed >> that's right. if they have the basis for federal charges they could come in and try to take the case. that's unlikely. given they didn't involve themselves at the press conference, neither the fbi or justice department, but it's possible. we'll see how this plays out. >> the other interesting thing going back to the suspects himself and his news conference held by the new york city mayor, michael bloomberg. i've not seen many news conferences where investigators demonstrate what could have happened if this guy could have manufactured these pipe bombs. did you find that unusual? >> i do. i can remember during -- you'll recall, carol, the liquid bomb plot several years ago. we did such an experiment, but we didn't show those tapes publicly. and we also know from the times square bomber who put the bomb together incorrectly, thank god, that they often don't put these things together. the christmas day bomber didn't successfully detonate his bomb either. it's interesting they would have shown how it would have been if successful. often as we know, though don't put them together successfully. >> crossed my mind, trying to demonstrate how dangerous he could be because he's inspired by al qaeda, never had any direct linked to al qaeda, inspired by death of al awlaki, right, and learned how to build the bomb from an al qaeda-inspired magazine called "inspire." the article was "how to make a bomb in the kitchen of your mom." >> the interesting thing, the u.s. government has been against al qaeda's leadership and people like anwar al awlaki, they live on. al awlaki had hundreds of thousands of audio and videotapes disseminated around the world. even though he's dead, we're seeing these websites continue to recruit, inspire and train individuals who are sort of want to be affiliated with them. >> fran townsend, thanks for joining us. appreciate it. two university of california-davis police officers are on administrative leave after this video you're about to see surfaced of cops casually pepper spraying peaceful occupy protesters right in their faces and point-blank range. it happened friday night. the university says the officers were trying to clear out the occupied camp and felt trapped by protesters. the uc davis police chief says it was one officer's decision to unload. >> this was a decision made from with that group, from with, by the officer who was in charge. i see pepper spray as a tool for officers to use, and like any other tool that we carry and we utilize, you hope and pray that it's used correctly and with policy. >> 11 people rirp required trea. two hospitalized. hundreds came out calling on the school's chancellor to resign. and politic, turns out failure was an option for the deficit cutting super committee charged with trimming more than $1 trillion in debts. unable to compromise, the bipartisan committee is now focused on putting a positive spin on the failure. they'll come out with an announcement. >> kate bolduan is following the development live in washington. kate, what went wrong? >> reporter: seems that the big issues that have held off pulling off deficit deconduction ddeconduction -- reductions in the past, it's headed for failure today as talks have fallen apart and lawmakers have gone from negotiateding to simply finger-pointing lining up for who should be to blame if and when the committee fulls if they can't pull it off. we'll see today. automatic and painful cuts kick in to achieve the required minimum savings of $1.2 trillion. included in the summer debt deal to motivate the not succeed. among the areas that are impacted, defense would be hit. many say the worst suffering about half of the cuts. medicare impacted, education, transportation, to name a few. some areas, especially those that help low-income americans, social security, medicaid, food stamp programs and veterans benefits are excluded. there is already quite a bit of talk about overturning this trigger or working a way to carve out the cuts to the defense budget, which defense, the defense secretary said would be catastrophic. lawmakers including the president said it would be shirking the responsibilities of congress. these were put in place to be painful to avoid this committee doing just what they're probably likely about to announce today, which is not reach agreement. >> we all know how that works. >> exactly. one thing to point out, they'll have a year to battle this out, as these cuts, while automatic and immediate, they called them, they don't set in until 2013. >> kate bolduan, thank you very much. coming up at 8:30 eastern, we'll talk with two key members, arizona senator jon kyl and massachusetts democratic senator john kerry. how do you put a positive spin on failure? >> lard hard to do that. >> we'll ask the senators. >> exactly. ten past the hour. what's new this morning, the obama administration plans to announce new sanctions against iran later today. with u.s. companies banned from doing business with the iranians, the new sanctions are intended to stop foreign countries from conducting business with iran's oil and gas industry. and any foreign nation that does, will be banned from doing business in u.s. markets. egypt erupting again this morning. protesters filling cairo's tahrir square for a third straight day. 20 people killed in brutal clashes. many beaten. elections will go on as planned, military leaders say, in seven days. the government's opened an inquiry to illegal eavesdropping and bribery by journalists in london. among the witnesses, hugh grant claiming his phone was hacked by the now defunction "news of the worlds" tabloid. still to come, a preview of the gop debit moderated by our wolf blitzer. candy crowley will be along to tell us why tomorrow's topic could make this a make or break night for the candidates. >> speaking of the candidates, jon huntsman making a cameo this weekend on "saturday night live." why he can't finish a sentence these days without the words "new hampshire." and actress mila kunis makes a dream come true. details coming up. she didn't wear that dress. you're watching "american morning." 12 minutes after the hour. some vehicles sacrifice luxury to improve fuel efficiency. but the jeep grand cherokee uses advanced technology. like the quadra-lift air suspension that lowers the vehicle at highway speeds to improve aerodynamics and deliver a more than 540 mile driving range. so you can raise your standards while lowering your fuel consumption. ♪ there's a moment where everything comes together. where there's magic. and you now understand what nature's been hiding. ♪ at dow we understand the difference between innovation and invention. invention is important. it's the beginning. it's the spark. but innovation is where we actually create value for dow, for society, and for the world. ♪ at dow, we're constantly searching for how to use our fundamental knowledge of chemistry to solve these difficult problems. science is definitive. there is a right answer out there. [ male announcer ] the same 117 elements do the fundamental work of chemistry. ♪ the difference, the one element that is the catalyst for innovation, the one element that changes everything is the human element. ♪ morning." the republican presidential hopefuls gather in washington tomorrow night for another debate. this one will focus on national security. >> and if history is an indication, a topic that could help a candidate clinch the nomination. here's cnn political correspondent candy crowley. >> reporter: whenever anybody asking me why is a foreign policy debate important i would direct them to george bush, the son. elected in 2000. his entire agenda was about fixing education, helping the economy. he had a very domestic agenda. and then came 9/11 and he became a foreign policy president. it really mattered what he knew, who he knew, who he had around him. what sort of people did he pick? it was important to george bush at that time. so much so that condoleezza rice, who had worked in his dad's administration, was brought onboard during the campaign to take george bush in his down times and talk to him about various countries and various leaders. you can say all you want, but this is an election that's going to be decided on the u.s. economy. maybe you're right, but the fact of the matter is, even the u.s. economy is somehow impacted by what's going on in greece. by what may go on in italy. by what's going on in spain. all across europe. so the fact of the matter is, it's really the global dealings that we talked about for so long. so it's important that these presidents, these potential presidents, show their stuff. >> all right, candy, and keep it here tomorrow night at 8:00 eastern on cnn as the republican candidates for president gather at the white house for a debate on national security and the economy. co-sponsored by the heritage foundation and the american enterprise institute and moderated by our very own wolf blitzer. flats 8:00 eastern tomorrow night right here on cnn. jon huntsman has a plan and not about to waver now. with new hampshire, campaigning almost exclusively in the granite state. but over the weekend, battling and losing badly in the polls took a break and headed for a cameo in the big apple on "saturday night live" and still had new hampshire on his mind. >> you seem to be putting all of your eggs in one basket, new hampshire. are you worried you might alienate the rest of the country? >> seth, i love all of america. from dallas, texas, to manchester, new hampshire. from the majestic rocky mountains, to the lake w winnipesaukee, from the lakes to the outlet walls to malls in new hampshire. >> you can't help but mention new hampshire. >> it's not on purpose. i would never tie myself to one state. i like to spread my wings and fly like the purple finch. >> which is, of course, the state bird of new hampshire? >> you know a lot about new hampshire? >> i'm from new hampshire. >> well, that makes sense, because you're kind and good-looking. classic new hampshire. >> jon huntsman is a proud new hampshiren, and i can tell you we do not fall for easy compliments. >> that's because you're wise like a dartmouth professor. >> all right. well, thank you so much for coming. >> are your parents registered voters? >> my mom's a democrat and my father's an independent. >> say hi to your dad for me. >> all right. >> tune in tonight. jon huntsman sits down live with our own john king for a preview of tomorrow night's republican debate and i bet they'll talk about, i wonder what the weather is today in new hampshire? >> exactly. let's talk more about the weather. a big travel week, we'll be right here on the set living here the entire week, but bonnie schneider, tell us what the weather will be like? >> definitely wet. massachusetts, rain. a lot of rain sliding across new york city most of the morning, long island at this hour. rain further south towards new jersey and delaware and maryland. unfortunately, that wet weather continues on and off throughout the day. much heavier in terms of downpours for memphis. very stormy as well as little rock further off to the west and rain sliding into nashville at this hour. if you're driving in arkansas or tennessee you'll face wet weather. further off to the south and west in dallas, texas, the risk continues for severe storms. these could be very powerful throughout the afternoon. make sure you have your noaa weather radio on and listening for any severe thunderstorm watches or warnings posted to your area. to the north, very, very cold and chilly. how cold? in minnesota, cold enough for snow. show you pictures, kind of an early start to winter. a lot of people get snow this time of year. minnesota, it's not uncommon. several inches of snow, cause a lot of traffic problems and people have to take it slow on the roads. that's what's to come for much ever the country that hasn't experienced it yet as we get into the colder temperatures. for those of you getting a head start on thanksgiving holiday travel, unfortunately today doesn't look like the best day, because we have a lot of delays anticipated. none right now but looking for them. you saw rain moving through new york. recent fog and clouds throughout much of the day. delays also in atlanta. washington, d.c. dallas, due to storms i mentioned, and it's raining right now in memphis. it you're driving, give yourself extra time to get were where you're going on 45, for example. seattle, rain and wind an deep lays in san francisco due to early morning fog. a lot of delays expected for today and much of what you see pushing eastward for tomorrow and as we get closer to thanksgiving. monitoring all delays here, right here on cnn. lots of exciting things happening as we're going to be covering travel for you on this busy holiday week. alina, carol? >> it's exciting. >> the biggest breaking news event. >> it is. >> bush administration -- bonnie schneider. act trick mila kunis made good on a promise. attended the marine ball in greenville, north carolina, made a marine wish come true with her date. remember, the happy couple posted a youtube invitation back in july while stationed in afghanistan. justin timberlake did the same. >> sergeant moore looked a little nervous in these pictures. >> i'd be nervous. >> still to come this morning, tabloid journalism on trial in britain as victims of phone hacking tell their stories. and what's expected to be the most popular holiday gift in america this season? not that everyone uses them. we're "minding your business," next. state farm. this is jessica. hey, jessica, jerry neumann with a policy question. jerry, how are you doing? fine, i just got a little fender bender. oh, jerry, i'm so sorry. i would love to help but remember, you dropped us last month. yeah, you know it's funny. it only took 15 minutes to sign up for that new auto insurance company but it's taken a lot longer to hear back. is your car up a pole again? [ crying ] i miss you, jessica! jerry, are you crying? no, i just, i bit my tongue. [ male announcer ] get to a better state. state farm. 25 minutes past the hour. welcome back. "minding your business" his morning. u.s. stock futures pointing to a lower open now. last week the dow dropped nearly 3% and the nasdaq and s&p 500 fell about 4% driving markets down overnight fears of u.s. budget talks as well as the debt crisis in europe. spain has a brand new leader. mariano won 41% of the popular vote. topping his agenda, preventing the defendant crisis from spreading to spain. in recent days, concern about spain's economy pushed them to the key 7% level in which other countries were forced to seek an international bailout. warren buffett speaking about europe. in his trip to japan today he says the euro system is just not working and it will take more than words to fix it. buffett is looking at potential investments in japan after his trip was rescheduled in march due to the tsunami and earthquake. and chevron taking responsibility for an oil spill in brazil and pledging to clean it up. it happened our rio de janeiro earlier in the month. the leak has since been plugged. sending your packages will soon cost you more. u.p.s. announcing it's boosting its base rates for ground and air shipments 5.9%. international shipping rates are jumping almost 7%. the company blames demand and its investments in new technologies increasing. the new rates gn after christmas on january 2nd. gift cards, the most popular present again this year. a survey by the national retail federation says 80% of you will be buying a gift card for someone this holiday season. "consumer reports" says a quarter of people don't even use them. more on that coming up later this hour, and don't forget are for the very latest news about your mon, check out the brand new cnnmoney.com. "american morning" will be back after a break. ♪ [ slap! slap! slap! slap! slap! ] [ male announcer ] your favorite foods fighting you? fight back fast with tums. calcium rich tums goes to work in seconds. nothing works faster. ♪ tum tum tum tum tums turning the tables on the british tabloids, celebrities get a rare chance to confront tormentors at a hearing. on this "american morning." and welcome back to "american morning." it's 30 minutes past the hour. your top stories now -- a suspect arrested in a new york city pipe bomb plot. 27-year-old jose pimentel behind bars. arraigned and denied bail hours ago. mayor michael bloomberg announcing an alleged terror plot involving the al qaeda sympathize here planned to target the nypd and returning u.s. soldiers with homemade pipe bombs. deadly pre-election violence in egypt. protesters filling cairo's tahrir square for a third straight day. 20 people killed in brutal clashes over the weekend, many beaten. demonstrators saying the new military rulers have to go. the so-called congressional super committee is apparently far from it. you're looking at a live picture from capitol hill. members of the committee now blaming one another as they prepare to formally announce their failure to come up way deal to cut $1.2 trillion from the deficit by this wednesday's deadline. britain's stone hacking scandal entering a new phase at a government-backed hearing. witnesses including actor hugh grant are getting a rare chance to turn the tables on the tabloids. atika shubert is covering this and is live in london. hey, atika. good morning. >> reporter: good morning, carol. we've already heard from a number of people who are witnesses and waiting to hear from hugh grant and other celebrities. we've heard from a lawyer, a journalist and most importantly from the family of mill y dowle, went missing in the uk. her parents were frantically searching for her but they were also mobbed by the press. couldn't even open the door without the press hounding them, popping up when they were just trying to take out the garage and perhaps most damaging of all, hacking into their daughter's voicemail messages and deleting some of those messages to listen in on to more voicemails. this unimportantly led to the false hope by sally that her daughter was stl alive. we now know milly was abducted and murdered. that's the damage done by the press specifically on phone hacking. this inquiry will also look at other illegal methods of gaining information, such as the surveillance they have done, such as cyber climbs, all kinds of things will be looked at. >> all right. atika shubert, thank you very much. to the university of california-davis police officers, two officers on leave this morning after this video surfaced of cops casually pepper spraying people occupy protesters. the pepper spray went in their faces at point-blank range. this happened friday night. the university says the officers were trying to clear out the occupy camp but felt trapped by the protesters. the uc davis police chief says it was one officer's decision to unload the pepper spray, just his. 11 people required treatment. 2 ended up in the hospital. firefighters appear to be making process battling the reno, nevada, wildfires. the blaze is 80% contained. since is began thursday, dozens of homes damaged or destroyed. the officials say the fires are no longer a threat to other buildings. no word on exactly what caused. tragedy at the philadelphia marathon. two runners collapsed and died during sunday's big race from what appears to be heart attacks. one man collapsed right before the finish line. the other about a quarter mile before the end of the race. in miami, hurricanes won't be at a bowl game this year. university of miami announced a self-imposed ban yesterday. the school is still under investigation by the ncaa over allegations that a former booster and convicted ponzi schemer gave cash, jewelry and even prostitutes to players. the team plays its last game on friday. let the debate begin. is he back? tiger woods clinching the president's cup for the united states in mall boerne, us melbourne, australia. the second time tiger clinched the cup for the u.s. >> wow. what could be his last game on u.s. soil, david beckham, the champ. the l.a. galaxy won the mls cup last night beating the houston dynamo 1-0. beckham and landon donovan, also a cutie of world cup fame, teamed up to win the cup. shocked the soccer world from 2007 when he came to the u.s. to compete his. his five-year deal expires next month. something tells me -- >> i wonder if he'll go home, though? >> will posh still live here were. >> victoria beckham, made a home in los angeles and their kids apparently are happy. we'll have to wait and see. >> i'm sure they'll be following it closely. the first lady and dr. jill biden, well, they faced a very tough crowd in nascar. put it that way. >> and now, please welcome our grand marshals. sergeant andrew berry and family, first lady of the united states, michelle obama and dr. jill biden, as they deliver the most famous words in motorsports. >> gentlemen, start your engines. >> you heard the boos there. michelle obama and jill biden greeted by boos at the ford 400. the grand marshals of the season's last race and aware of the first lady's joining forces initiative. an initiative to hire and train veterans. in the mean time, tony stewart took hone the sprint cup title. first win since 2005. and up next on "american morning," newt gingrich. shocking himself by surging to the top of the gop polls. we are going in-depth by two men who worked side-by-side with the former speaker to see why this is happening and whether it can last. 36 minutes after the hour. 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[ male announcer ] alka-seltzer plus liquid gels. ♪ oh what a relief it is! ♪ good morning. washington, d.c. take a look at the nation's capitol. a live look there. cloudy and 56 degrees and showers later way high of 57. rain up and down the east coast. welcome back to "american morning." it's a scenario no one could have imagined just a couple of months ago, but newt gingrich is emerging as a front-runner for the republican nomination. look at the latest cnn/orc poll. the former house speaker pulling into a virtual tie with mitt romney making up 14 points just since october. he's now trailing the former massachusetts governor by just two points. that's well with the margin of error. so how is gingrich managing to pull this off? we want to go in-depth. joining us, martin frost a former democratic congressman from texas and rick tyler a former gingrich spokesman who work and the candidate's campaign earlier this year. gentlemen, thank you for joining us. rick i want to begin with you. you were part of the very well paub la sized staff exodus back in june. you and 15 others quit in protest. you didn't agree with his campaign strategy then. wrap do you think he's doing right now? >> well, i think he's benefitted from a series of second looks, if you will. we always want to find the perfect candidate and often look, if we have not known very well, and so we had the rise and fall of a lot of candidates. this is really an expectations game. in a sense, newt is innom cue lated from the game, solidified himself as the not-romney candidate and benefited enormously from these benefits. they've highlighted his experience. here he's just been so focused on what he wants to talk about in these debates, and it's really served him well. >> has it surprised you? >> i think it has surprised me, in politics and even people who cover politics we lose our perspective from time to time. when we had an avalanche fall on us, i took the short field and thought we were dead. newt i should have known, took the long view, reascending the mountains. i shouldn't have been surprised. i've had a lot of things to reflect and see clearly and am very happy for the speaker. >> well put. martin i want to talk to you for a moment, because were you part of the same freshmen congressional class back in 1978 as newt gingrich. i'd like to know your thoughts about a very young newt gingrich and whether you saw early on that there was a future leader there in the works? >> well, no one knew very much about newt when he was first elected in '78. we both were about the same age. we both were relatively unknown when we came to congress. it took a while for newt to catch on. he was elected in '78 and didn't become speaker until '94. he became whip a couple years before has. basically took advantage of the fact democrats had gotten lazy. been in power for years, he was able to put together and insurgency and won. did it in a very smart way. the problem with gingrich is that he'll go along and be very good, say, for 50 minutes out of an hour and the last 10 minutes of the hour go wildly off message. that's what happened to him once he became speaker. he had problems. he got in trouble when he went head-to-head with bill clinton. o outflar outflanked him on closing the government, made him look pretty foolish. in the closing days of the campaign ignored everybody's advice and decided to go out solely on the ima peachment ish i add republicans wound up losing five seats. i was chairman that year and beginning rsh had to be resigned, about to be overthrown by his own people. a very smart guy but not at all perfect and he really benefits from a very weak field right now, because cain, perry, bachmann, they don't have substance. newt is a guy of substance, but romney is still the front-runner. he'll have a hard time beating romney but the only credible person to go against romney now and an interesting race to watch. >> you talk about how it took him a while to get in, so to speak. it wasn't until 1994 that he was, of course, famously the architect of that contact contract with america and then went on to become speaker of the house. having said that, rick, a lot of democratic strategists are salivating at the idea of a gingrich nomination. they say he comes with a lot of baggage. the well publicized affair, three marriages, ethics violation including these two latest headlines that freddie mac paid him more than a. dollars in consulting fees and his think tank received $37 million from health care providers. i'm curious, if were you still advising him as a spokesman what would you tell him on how to deal with that? >> well, i think he is dealing with that. notice you linked two things together. an ethics scandal. there was. the internal revenue service and ethics committee and a judge found newt did nothing wrong concerning the 1984 speech ethics charges filed again him thens linked it with freddie mac and fannie mae as if newt making money as a consultant, is highly scandalous. it's not. so i would advise him to go out and tell the truth. nothing wrong with a client, freddie mac, that was one and by the way, focused on free market health care as an alternative to obama care. i don't know a lot of politicians who want to, eve be foreign politicians, who want to take on large-scale change. gingrich balanced the budget, for cutting taxes. people should look at newt in terms of, if you're looking at things very large and lard to do in washington, newt gingrich has been willing to take on the big challenges and we have big challenges. we're $15 trillion in debt. >> if i could, let me add one thing. newt's real sprob he tends to get caught up in his own rhetoric from time to time. he tries to be too cute. this happened this spring when he accused paul ryan of right-wing social engineering and then had to back track, say, know, no, i didn't really mean that. i followed newt closely over the years. an interesting area that hasn't gotten a lot of attention. newt gets lost on the subject of immigration. i will be interested in-of-if he gets pressed and that issue soon. on one hand, amnesty and become unpopular, we'll move off that subject. snut a work in progress. he's a 68-year-old work in progress and it will be interesting to follow him, and he is -- he's smarter and he knows more than most of the people in this race, except romney. romney, i think, comes off, will come off well against newt. the question is, can newt sustain this now that he's suddenly risen to the top? this is such a crazy year. it's a weak field on the anti-romney side. so he probably can sustain it. we'll see once he has to go head-to-head way real candidate how he does. >> rick i have to ask you and remind people you were among the 16 people to quit in protest back in june. given what you're seeing now with gingrich surging in the polls, would you consider rejoining the campaign? >> i wouldn't rule it out. i have no plans to join the campaign. i wouldn't rule it out. >> if he asked, would you rejoin? >> let's leave that for a future date. i don't -- you know -- >> all right. is that a yes? all right. thank you so much, martin frost, rick tyler. we appreciate your thoughts. be with us tomorrow night: o8:0 tomorrow night for a debate on national security and the economy co-sponsored by the heritage foundation and american institute motorated by wolf blitzer tomorrow night. and holiday shoppers beware. coming up, the most common and costly mistakes you make when you buy your loved ones gifts. it's 47 minutes past the hour. when you're a sports photographer, things can get out of control pretty quickly. so i like control in the rest of my life... especially my finances. that's why i have slate, with blueprint. i can make a plan to pay off big stuff faster... or avoid interest on everyday things. 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. it is ten minutes until the top of the hour. here are your morning headlines and the latest example how washington gridlock, democrats and republicans on the debt super committee could not agree how to cut $1.2 trillion from the budget. now it appears they're working on the best public way to say, hey, we failed. wall street, more of the same for investors. dow, nasdaq and s&p futures all down sharply. we are poised for a sell-off at the opening bell. a suspect arresteded in a new york city pipe bomb plot. the mayor announced a plot involving an al qaeda sympathizer. the university of california davis police chief has been placed on administrative live after this video surfaced of cops pepper spraying peaceful occupy protesters. two officers taken off the job. a special panel investigating the penn state sex abuse allegations will speak today. the panel was established six days after ex-coach jerry sandusky was arresteded for allegedly abusing as many as eight little boys. classes will be cancelled for two hours today at oklahoma state university. they will hold a memorial service for women's basketball coaches kurt budke and miranda serna. they were both killed in plane crash heading home from a recruiting trip in arkansas. first lady michelle obama and jill biden were greeted by boos at the ford 400 in florida. they were the grand marshalls of the season's last race. they were there to honor u.s. troops and their families. also, problems at atlanta's hartsfield international airport. no flights allowed to land until 8:30 a.m. eastern. call ahead to see if your flight is affected. it probably will be as all flights will be throughout the day. good luck out there. "american morning" back after the break. americans are always ready to work hard for a better future. since ameriprise financial was founded back in 1894, they've been committed to putting clients first. helping generations through tough times. good times. never taking a bailout. there when you need them. helping millions of americans over the centuries. the strength of a global financial leader. the heart of a one-to-one relationship. together for your future. ♪ good morning, new york. do you know the leaves are turning? this is beautiful as you look at central park. >> it's the end of november! >> i know. but i look outside of the cafeteria and notice the leaves turning. i don't know where i have been for a month. it's cloudy and 52 degrees. showers later. it will be a messy day. >> it will be ugly. welcome back and forget black friday. the christmas shopping season is under way already. before you buy anything, christine romans has helpful holiday shopping tips in this week's "smart is the new rich". >> hello to the holiday hype machine. retailers want to separate you from your money whether you have it to spend or not. here are five steps to outsmart them. don't open a store credit card. credit limits are low and interest rates too high. even applying may not be worth it. if they are not pushing the store credit card it's the extended warrantee. don't waste your money. >> you seldom should take the extended warrantee. never is okay. >> mandy walker says your credit card may already cover you, plus -- >> things seldom break during the extended warrantee period. >> gift cards aren't always a great gift. a quarter of them are lying in your purse or desk drawer ten months later according to consumer reports. two-thirds of people who get them spend more than the face value so they are basically paying for their present unless you know the recipient wants it and will use it, you are probably buying tre tailor a gift. be leery of layaway. there are up front fees, what it if goes on sale and if you miss a payment the cancel could cancel the layaway and you could lose money. and beware of jacked up prices. hunt through the online sites like retailmenot for couponcos for online shopping. make it your mission never to pay for shipping. there are always free shipping deals around the corner. don't buy the hype. black friday prices are not always the lowest of the season. >> so stay home! don't wait in line at 1:00 in the morning. >> 152 million americans will be out shopping. >> it's like their own holiday tradition. >> it is a tradition. >> to go into a crowded department store and jostle people around to get bargains that may not be bargains. >> absolutely right. >> it's beautiful. >> all american. and the fda voting to stop giving women false hope. in a rare move it pulled approval of avastin for treating breast cancer. the drug was rushed through approval back in 2008 after a single study showed it could slow the effects of the disease. now the fda says the risks don't outpossible benefits. it remains on the market for brain, colon, kidney and lung cancer. >> it's being called a smart bomb for your mouth. a ucla microbiologist has a mouthwash that eliminates bacteria responsible for bacteria and tooth decay. he says we may be able to wipe out tooth decay. unclear if this means the end of brushing your teeth. i hope not. that doesn't sound good. >> still ahead on "american morning." she's a model, a writer and an advocate. now christy turlington burns makes a new documentary. we'll talk about it. it's 57 minutes after the hour. 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[ male announcer ] no matter what the future holds, we're making tomorrows people can count on. what can we make with you? transamerica. transform tomorrow. they sound awesome tonight. and when i do find it, i share it with the world. you landed the u.s. tour ? done. this is fantastic ! music is my life and i want to make the most of it without missing a beat. fly without putting your life on pause. be yourself nonstop. american airlines. new york city terror plot foiled. good morning. a man arrested after he allegedly built a blom ripped from the al qaeda handbook. >> isn't that super? a bipartisan congressional committee fails to cut a trillion dollars from the deficit. now the problem? how to tell the american people about it on this "american morning." good monday morning to everyone. it is november 21. ali and christine are off today. >> christine is preparing a huge thanksgiving day feast. she's a fabulous cook. >> and she has her family in from iowa, i'm sure. >> i'm sure. ali is preparing to eat. >> yes. i'm carol costello. first up, new details in a plot to plant bagpipe bombs around new york city. 27-year-old jose pimentel is in court. arraigned and denied bail. he plotted to bomb nypd patrol cars, post offices and returning u.s. troops. good morning. >> good morning. the message he wanted to send, we are in the city. he wanted to tell the public and assuming the pipe bombs worked, the counter terrorism source tells me he could have killed upwards of a dozen people. because he was under surveillance for two and a half years, bomb experts had time to build and detonate a similar device to show the potential impact. you can see the damage there. new york's top cop said the suspect was radicalized by the teachings of anwar al-awlaki. and the plot turned from aspirational to operational. >> he followed instructions from anwar al-awlaki's "inspire" magazine to first acquire the bomb-making materials and then assemble them. he relied on a particularly notorious article called "how to make a bomb in the kitchen of your mom." >> reporter: police say he followed the directions carefully, spreading out his purchases so he wouldn't attract attention. he was allegedly planning to attach nails which would act as shrapnel so when the bomb explode it would do maximum damage to anyone nearby. tactical units arrested the 27-year-old u.s. citizen because he started drilling holes in the pipes which is the last mechanical step in building the bomb. the fbi and other federal agencies weren't involved and largely aware of the investigation though targets inclued u.s. troops returning from iraq and though the plot was inspired by al-awlaki who also inspired the times square and underwear bombers among others. he faces five terror-relateded charges and entered a plea of not guilty. >> how dangerous is this guy allegedly? >> this is what everybody's trying to figure out. obviously had he been successful he would have been very dangerous. that's what police were trying to stop. we have seen with the times square bomber it failed to ignite properly. with the underwear bomber, failed to ignite properly. with the subway bomber, failed to ignite properly. there is human error that goes into what's going on with the wannabe jihadi terrorists. you don't want them to get it right even one time. that's what the nypd was moving in on when they arrested him. >> thank you. the obama administration plans new sanctions against iran this morning. sources tell cnn they are intended to stop foreign countries from conducting business with tehran's oil and gas industry. any nation that does will be banned from doing business in u.s. markets. the crackdown comes in response to a u.n. report ta says iran is developing technology needed to build a nuclear weapon. two of the last remaining kingpins of the gadhafi regime are in custody in libya. revolutionary forces say they have captured his intelligence chief. the arrest coming the day after forces captured said al islam gadhafi, gadhafi's son. both are wanted for crime against humanity at the hague. >> egypt erupting again. protesters filling tahrir square for a their straight day. 20 people were killed in brutal clashes over the weekend. many were beaten. military rulers say elections will go on as planned. >> the so-called super committee appears ready to throw in the towel. members charged with cutting $1.2 trillion from the budget have all but failed in their mission. the only talks happening now are on how to announce that the super committee faileded. some democrats are putting the blame squarely on the shoulders of one man. the lobbyist who got all republican members of the committee to sign this pledge. this is called the taxpayer protection pledge saying they swear never to raise taxes. grover norquist is the man behind the pledge. he's the president of americans for tax reform. he joins us live from washington this morning. good morning. >> good morning. >> democrats are pointing the blame directly at you. listen to senator patty murray, democratic cochair of the committee on the state of the union. >> -- has been a pledge that too many republicans took to a republican wealthy lobbyist named grover norquist whose name has come up in meetings time and again. as long as we have some republican lawmakers who feel more enthralled with a pledge they took to a republican lobbyist than they do to a pledge to the country to solve the problems, this is going to be hard to do. >> so are you to blame for the super committee's failure? >> no. unfortunately the senator is not telling the truth. she has never signed the taxpayer protection pledge. as a liberal democrat she's voted for every tax increase she had the ability to vote for. for the congressmen and snafrts who signed the taxpayer protection pledge they and the american people know the pledge is from them to the voters of their district and their state. i know the democrats don't want to stand up and say, we want to raise taxes. the republicans are fighting us. please help us raise taxes. that's not a good campaign slogan. they have tried to say, i'm the reason republicans won't raise taxes. that's not nonsense. >> if you're on a committee and you want to negotiate with the other side and you have signed this pledge -- and keep in mind we have 23 poms showing most americans want taxes raised on the wealthiest americans. so these pledges cover only a small portion of the electorate. so you sign the pledge as a republican member of the super committee and you're supposed to negotiate with the other side -- taxes. how can you effectively negotiate? >> of course you can. >> how? >> well, the democrats want higher taxes. that's off the table. it's been off the table for a year. the democrats are a little hard of hearing. they lost the last election because they raised taxes and spent too much. there's been a massive compromise. the republicans passed the paul ryan legislation which is a $6 trillion reduction in obama's $10 trillion increase in the debt that he put into his budget. the republican budget says let's take it down by $6 trillion. the agreement obama and pelosi and others came to in august wasn't $6 trillion but only $2.5 trillion. so there's been a compromise. now the democrats came in the last budget deal and wanted to increase spend $# # # trillion. increase taxes a trillion dollars and have make believe spending cuts because we won't be in iraq. >> i think economists say to solve the country's debt crisis there needs to be revenue and cuts and there needs to be a smart way to include both things. >> wait a second. >> when most voters -- listen to you. you're not an elected official yet you are controlling the agenda of the super committee. aren't you exactly what a lot of voters hate about our system? >> okay. you may have been missing the first part of our conversation. the pledge that congressmen and senators make is not to me despite what reid and other democrats pretend. when they say that, let's use the kind word. it's not true. it's a lie. you can go to atr.org, see the wording of the pledge, not some democrat's fiction and the list of people who made the commitment to voters. >> but you go after these elected officials with all the money because there is a lot of very powerful people who donate to your cause. you go after the elected officials and you make sure they are not elected again. you do. >> if somebody takes the pledge not to raise taxes and where are to break it we would certainly inform voters what they have done. we let people know -- look, if the democrats believe the american people want higher taxes and you say, oh, there are polls that say people want higher taxes than obama, reid and pelosi should man up and say, if you vote for us, we'll take more money out of your pocket every year into the future and we are not cutting spending. the republican position is different. we're not going to raise taxes to pay for obama's government. that's why the democrats don't like it. they don't like open promises; public commitments to voters. they make private promises to the aflcio and the trial lawyers. >> what if the dems signed a pledge never, ever to cut entitlements -- never. would that be a great negotiating tool on the super committee? >> a number of them have made that commitment to the trial lawyers, labor unions and big city political machines, promising not to cut spending. when the democrats went into the super committee when you talk to republicans and democrats they were never willing to do real spending cuts. all the talk about come propiez where things aren't written down, were never proposed. they have no signatures on a piece of legislation to reform the budget and the overspending we have now was put there during the tw years the democrats had the house, senate and presidency. the problem is viewed as success in moving us to france or european social democracy. that's where americans don't want to go. that's what the election of 2012 will be about. you want obama's european-sized government or an american-sized smaller government. clear distinction between the parties and the direction the country should go in. >> we'll see how it turns out. 2012 is fast approaching. grover norquist, thanks for joining us. we appreciate it. >> you've got it. >> we'll hear from failure sounds like from both sides of the ail. senator jon kyl joins us and massachusetts democratic senator john kerry joins us, too. >> it's interesting to a lot of voters that for once lawmakers aren't blaming other lawmakers. they are blaming this man -- >> at least the democrats are. >> -- for the failure of the super committee. i look forward to those interviews. still ahead, pepper spray outrage. two cops suspended after blasting peaceful protesters with pepper spray on the campus of uc-davis. the chief of police is being held accountable. new developments next. and not a warm welcome as nascar fans boo the first lady before the last race of the season. and supermodel christy turlington burns stops by. she has something to say to women everywhere. [ 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. ♪ good morning to our friends in nashville, tennessee. it's not a great morning there. light rain and 63 degrees. not going to get better later either. rain and thunderstorms with a high of 71. >> let's get a check on the weather now. bonnie has a look at that. good morning. >> good morning. you saw the picture of nashville. not far away the weather's worse. i'm talking about memphis, tennessee. that's where heavy rain is pounding memphis this hour. it's working its way toward nashville skirting to the north. this rain will be a big problem since it's a busy time for travellers. we are monitoring that. you can see the cloud coverage thickening up. the fog is deep in atlanta which is causing delays. we have a gruound stop now at te atlanta airport. here's more of what to expect today. these are all weather-related delays. there will be a volume of people trying to get where they are going for thanksgiving. in new york the rain pushed through. we'll see the clouds hanging on. that's likely to cause delays. we're going to see it in washington, d.c. watch how we are strong thunderstorms in dallas, texas, today where we are monitoring the threat for severe weather. memphis as well. seattle with rain and wind and san francisco, early morning fog to start off. the heavy rain that's working through the mid south could pose a problem in terms of a flood threat. notice little rock under the gun. isolated rain amounts up to six inches from the storm system and the weather may get more volatile in dallas, texas. we expect severe storms. cold temperatures all the way up to the north. cold enough for snow in minnesota. let's show you what it looks like there. unfortunately the snow made for tough travel conditions over the weekend. we had a lot of reports of traffic accidents, well over a dozen of them. it's not winter yet, but in minnesota it feels that way. we'll watch for the cold temperatures there and chilly weather as we can see in kansas city. the cold front is pulling down big changes ahead. it's mild in the northeast. we're looking forred good weather where you are. back to you. >> we'll be looking for it, too. we'll look for it on thanksgiving, bonnie. thank you. >> cnn now confirming that the university of california davis police chief has been placed on administrative leave. two officers also taken off the job after this video surfaced of cops pepper-spraying peaceful occupy protesters in their faces at point blank range. this happened friday night. campus police chief annette bakuva said it was one officer's decision, not the entire force, to unload. >> this was a decision made from within that group by the officer who was in charge. i see pepper spray as a tool for officers to use. like any other tool we carry and we utilize, you hope and pray that it's used correctly and within policy. >> 11 people required treatment. two were hospitalized. protesters calling on the chancellor to resign. >> it wasn't exactly the warm welcome the first lady and dr. jill biden were expecting. watch. [ cheers and applause ] >> and now, please welcome our grand marshalls, sergeant andrew berry and family, first lady of the united states michelle obama and dr. jill biden as they deliver the most important words in motor sports. >> gentlemen, start your engines. >> that was bad for them, but they handled it well. michelle obama and jill biden greeted by boos at the ford 400 yesterday. they were there to bring awareness to the first lady's joining forces program, an initiative to hire and train veterans. meantime, tony stewart took home the sprint cup title. it's his first win since 2005. >> actress mila kunis keeps her word attending a marine corps ball on friday night. that was her date. sergeant scott moore. sergeant moore posted a youtube invite back in july while he was stationed in afghanistan. as you can see the date came together and by all accounts they had a great time. >> they look like a real life couple. ladies' night at the 2011 american music awards. women took home top honors including nicki minaj. the biggest winner of the night was singer taylor swift. she won three including artist of the year for the second year in a row. >> it never gets old. i'm so excited. this is just crazy. this is my second time winning artist of the year. i can't believe that it happened again. >> i'm not sure she was that surprised though. >> as for the boys, bruno mars crowned favorite pop rock male artist and maroon 5 won best pop rock band. i love maroon 5. >> investors are nervous this morning. we'll check the markets and a stunning weekend at the movies. guess how much movie the latest twilight movie hauled in. wow. ♪ ♪ ♪ when your chain of supply ♪ goes from here to shanghai, that's logistics. ♪ ♪ chips from here, boards from there ♪ ♪ track it all through the air, that's logistics. ♪ ♪ clearing customs like that ♪ hurry up no time flat that's logistics. ♪ ♪ all new technology ups brings to me, ♪ ♪ that's logistics. ♪ and with my bankamericard cash rewards credit card, i love 'em even more. i earn 1% cash back everywhere, every time. 2% on groceries. 3% on gas. automatically. no hoops to jump through. that's 1% back on... 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[ toy robot sounds ] minding your business. it's shaping up to be a rough morning for investors. the dow, nasdaq and s&p futures are trading sharply lower. last week the dow lost 3%. its worst performance in two months. the new york city school bus driver's union threatening to strike starting today. more than 152,000 students could be affected city wide. the dispute is about job protection for union members. sending packages will cost more soon. u.p.s. is boosting base rates for ground and air shipments 5.9%. international shipping rates are jumping 7%. the company blames demands and investments in new technology for the increase. the new rates begin january 2. good news for drivers. the latest lundberg survey says the average cost for gas is $3.38, down five cents in two weeks. the survey says slumping demand and lower crude oil prices helped to drive prices down. a first for cosmetic giant mary kay. the company presented beauty consultant jim condit with the legendary pink cadillac. he's the only man in the country to earn the car. the caddy is presented to the top mary kay sales consultants. "breaking dawn part 1" breaking the box office this weekend. the latest in the twilight saga opened with $139 million in ticket sales. it's the fifth best movie weekend ever. up next, what's the deal with deficit cuts? is the super committee on the brink of collapse? we'll get both sides. jon kyl and democrat john kerry join us live. "american morning" is back after the break. is fast. did you hear sam... ...got promoted to director? so 12 seconds ago. we should get him a present. thanks for the gift basket. you're welcome. you're welcome. did you see hr just sent out new... ...office rules? cause you're currently in violation of 6 of them. oh yeah, baby? ...and 7. did you guys hear that fred is leaving? so 30 seconds ago. [ noisemakers blow ] [ both ] we'll miss you! oh, facecake! there's some leftover cake. [ male announcer ] the new htc vivid. stay a step ahead with at&t 4g lte, with speeds up to 10x faster than 3g. ♪ to find you a great deal, even if it's not with us. [ ding ] oh, that's helpful! well, our company does that, too. actually, we invented that. it's like a sauna in here. helping you save, even if it's not with us -- now, that's progressive! call or click today. no mas pantalones! 30 minutes past the hour. the super committee appears ready to declare defeat after three months of talks failed to reduce a deal reducing the deficit on this "american deficit on this "american morning." -- captions by vitac -- www.vitac.com welcome back to "american morning" on this monday, november 21. your top stories now. a suspect arrested in a new york city pipe bomb plot. the 27-year-old is behind bars this morning. he was arraigned and denied bail last night. mayor bloomberg announced an alleged terror plot involving the al qaeda sympathizer who planned to target the nypd and returning u.s. soldiers was with home made pipe bombs. >> deadly violence in egypt. protesters filling tahrir square for a third straight day. 20 people killed in brutal clashes over the weekend. 1,200 people injured. many brutally beaten. the new military rulers have to go, say some. >> this is a live picture of capitol hill where the so-called debt super committee may be ready to throw up its arms and walk away after failing to compromise on reducing the deficit. now instead of a deal they are said to be focused on how to announce failure on how to reach a deal. >> three months of talking couldn't bridge the divide between republicans and democrats on the super committee. now we'll hear why they couldn't get it done. joining us arizona republican senator jon kyl, a member of the debt super committee. welcome, senator. >> thank you. >> if you guys do have to come out and tell the american people that you have failed, how do you make failure sound remotely good? >> it's not good. first of all, there will be an announcement toward the end of the day one way or the other. we are still talking and hope springs eternal. it is late in the day. that's for sure. i think the other thing people should realize is there still will be $1.2 trillion in deficit reduction, but it won't be done through what the committee might have recommended but rather in across the board cuts. those aren't as -- those could be more difficult for the defense department, for example, and for some domestic programs. >> okay. >> but the cuts will still occur. >> i guess that would be one way to spin it, if i can put it that way. >> i'm not trying to spin it. >> i understand. but not being able to come to an agreement, how does that feel for you? >> it's disappointing. we tried the bigger packages, smaller packages, entitlement e form, tax reform. finally, more in desperation than anything else republicans said last week, look, if we can't agree on those things why can't we agree that there are a lot of place where is the government has surplus property we can sell. we can raise fees on fannie mae and freddie mac. we can ask federal employees to go without a salary increase for a couple years including members of congress, for example. we agreed on those things and it added up to $640 billion. >> but not nearly enough. of course the big elephant in the room -- >> can i make a point? >> the elephant in the room was raising taxes on the wealthy. >> exactly so. our democratic friends said we won't cut one dollar more without raising taxes. that tells you a lot about the ethos in washington. we went into the exercise to try to reduce federal government spending. when we get from the other side is, no, we won't make more cuts unless you raise taxes. >> a lot of voters though see that, you included, all the republicans on the super committee, signed this tax pledge by grover norquist's group. you went in there and couldn't negotiate, you know, on a level playing field because you had already made this pledge and you weren't going to budge. you knew that issue was important to the other side -- democrats. >> but we did budge on it. grover was very disappointed in what the republicans offered who was tax reform which would have resulted in the upper two income brackets paying a higher marginal rate because their deductions and credits, the so-called tax expenditures, would have been greatly reduced in value. that's what the experts recommended. they said, make the tax code flatter and fairer. get rid of the loopholes. you can raise revenue that way. and we did. $250 billion worth. grover wasn't happy with that, obviously. >> a lot of people said that wasn't enough. you didn't raise enough revenue. you could have raised more by doing other things. i'm not going to convince you. i realize that. >> your job isn't to convince me. >> no, it's not. >> let me make this point to you. why do republicans not want to raise taxes more than that. it will kill job creation. the best way to get out of the deficit situation we have is for economic growth to produce more wealth that can then be taxed. that has the benefit of creating a lot more jobs. even president obama said you don't raise taxes in a recession. that's where we are. that's why republicans said, don't raise taxes now. this is the time for economic growth and that's what the pat toomey proposal would have done. >> this is philosophical for republicans, way different than, you know, what the democrats think philosophically and the bridge -- i mean, it's such a wide philosophical difference that i think people just sit back in this country and they're not exactly angry that the super committee didn't come any agreement. they were expecting this. >> frustrated. yeah, they're frustrated. some philosophy is not different here. i quoted the president who said you don't raise taxes in a recession. >> president obama also wants to raise taxes on the wealthiest americans in this country. he's said that. >> well, last year he extended all of the current tax rates, the 2001 and 2003 tax rates. they applied to the wealthier and the less wealthy. >> he compromised. >> he did that because he recognized that this was not the time to raise taxes on anybody. the people in the upper brackets are the ones who create the jobs. he understood that. well, the situation is no different today. that's why we have resisted raising taxes on small business people who need to create jobs. >> i think that voters though don't look at small business people and taxes raised. they look at giant banks sitting on tons of money and they have the money to spend and they are not spending it. when they hear you saying that, and i'm talking democratic and some independent voters. they said, wlr wrr there are th problems? it's not like the giant corporations aren't making money. they're just sitting on cash. >> the fact is coming out of a recession, most of the jobs are created eby small business. since 1980 all of the net job creation has come from small business. >> and they are hiring people. >> no, they are not. that's the problem. we have over 9% unemployment in this country. the small business folks will be creating the first jobs as we come out of the recession that we are in. that's why we don't want to raise taxes on them now. on the corporate side there was agreement that we should have corporate tax reform to take the top corporate rate down to perhaps 25% if we can get it there so our country can be more competitive internationally. there was agreement on that. >> senator jon kyl, thanks for being with us. we'll talk to senator john kerry now. we appreciate it. >> all right. you heard from the republican. yes, after the break we'll hear from massachusetts senator john kerry for his take on why the debt talks have failed. good morning. washington, d.c. where it's cloudy and 57 degrees. showers later with a high of 58. welcome back to "american morning." what went wrong? barring an 11th hour breakthrough the bipartisan debt super committee appears headed for failure. the republican cochair says nobody wants to give up hope but the reality is starting to overtake hope. joining us now from capitol hill is democratic senator john kerry of massachusetts who is himself a member of the super committee. senator kerry, nice to see you. thanks for joining us. >> my pleasure. >> americans are waking up this morning hearing the headline, the super committee is doomed to fail and people are frankly mad at what they call a do-nothing congress. as a member of the super committee, tell us what went wrong and is there still a shot at a deal? >> i'm not going to talk about what went wrong when we are still working and hopefully there is an opportunity. it's very tough right now. a lot of people are just working on the prediction and on the momentum towards not achieving something. but there is one big, big hurdle to get over. the republicans have been insisting that we make permanent and extend the tax cut to the wealthiest americans. we are all prepared to provide a tax cut to 97% of america. all the small business people to all the average income earners of our country. we cannot in good conscience extend the bush tax cuts at the higher end when we are at a 60-year low in terms of the revenue coming in to the government. you can't ask seniors on a fixed income, on medicare, or poor children on medicaid to be the ones to ante up while the wealthiest get a big tax cut. it just doesn't make sense. that's the hangup. grover norquist's pledge. they have a pledge to a lobbyist. they won't allow taxes to go up and they are fighting now to do that. >> senator kerry, i'm not sure if you heard your republican colleague jon kyl a moment ago on cnn. >> i did not, no. >> he say basically that democrats would not agree to any more cuts to the federal budget without raising taxes. so what do you say to that? >> what i say to that is we have had three major commissions and the gang of six which is made up of republican and democratic senators alike. the simpson-bowles commission, the gang of six, all recommended that you have to try to achieve a $4 trillion reduction in the deficit just to stabilize it. and that ought to be split. every one of them recommended $2 trillion of revenue. all we are asking now from these guys is about $350 billion versus $2 trillion. they say, no, because they want the bush tax cuts for the wealthiest americans extended. is whole deal is being held hostage to this idea that the wealthiest people in america ought to get a big tax cut while everybody else chips in. i don't think anybody in america thinks that's fair. >> yesterday on kwoez me"meet t" you said there were things you agreed to. what were the concessions? would it have been a enough to strike a deal here? >> let me make it clear. we democrats put a $4 trillion plan on the table. we had $1.3 trillion of cuts. we had $1.3 trillion of revenue. some of the revenue, we are not asking that to happen tomorrow or the next day. it can happen in a year. this is a ten-year plan and longer. we have the ability to be able to do something fair for all americans. but unfortunately this thing about the bush tax cuts and the pledge to grover norquist keeps coming up. grover has been the 13th member of the committee without being there. i can't tell you how often we hear about the pledge, the pledge. we all took a pledge to uphold the constitution and full and faithfully and well execute our duties. i think that requires us to reach an agreement. we have to compromise. >> i can't let you go without asking about this. i don't need to remind you the race for president is well under way. president obama is facing a tough fight. don't you worry about the political damage this could do to the president? people tend to lump washington a into one big sort of group and they don't differentiate. >> they will differentiate. i don't worry about that because the president put a $4 trillion proposal on the table and they said no for the same reasons they are saying no today. this is a big fight for our nation. this is a question of what's our value about fairness? what do we think is right when the top end of the income earners have gone up $275 a% in income over the last 20 years and the average person in america has seen a very small increase, if any. this is a matter of fundamental fairness. the american people will be part of this and central to the debate going forward. the president was specifically asked by the republicans not to get engaged in their deliberations because they didn't want it to become a political football. this was a congressional idea to have this committee. this was congress's responsibility and frankly the only reason we don't have an agreement is not because we weren't willing to make reductions to medicare, health care, do things we needed to do to make the system stronger, to protect it going forward. the reason is we are stuck on this insistence of making the bush tax cuts for the wealthy permanent. i think the american people will judge that to be insane. >> senator kerry, you still sound optimistic that you will reach -- >> no, i'm always an optimist. there is an opportunity here to reach an agreement. >> i wish you the best of luck. you and the other 11 members of the super committee. i wish you a great thanksgiving this week. >> thank you so much. >> a special hello to your daughter alex. >> thank you very much. >> the morning headlines are next and christy turlington burns makes her directorial debut in a documentary about at-risk pregnancy and childbirth. she'll join us in studio ahead. you name it. i've tried it. but nothing's helped me beat my back pain. then i tried this. it's salonpas. this is the relief i've been looking for. salonpas has 2 powerful pain fighting ingredients that work for up to 12 hours. and my pharmacist told me it's the only otc pain patch approved for sale using the same rigorous clinical testing that's required for prescription pain medications. proven. powerful. safe. salonpas. and started earning loads of points. you got a weather balloon with points? 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[ 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. 47 minutes past the hour. it's shaping up to be a rough morning for investors. the dow, nasdaq and s&p 500 futures all trading sharply lower. the dow last 3% last week, its worst performance in two months. a suspect arrested in a new york city pipe bomb plot. mayor bloomberg announced an alleged terror plot including an al qaeda sympathizer who planned to target the nypd and returning soldiers. a police chief has been placed on administrative leave after video surfaceded of police pepper spraying peaceful protesters. classes will be cancelled for two hours this afternoon at oklahoma state university. they will be holding a memorial service for women's basketball coaches kurt budke and miranda serna. both were killed in a plane crash last week as they were haeed home from a recruiting trip in arkansas. taylor swift takes top honors at the american music awards. she won artist of the year for the second time in a row. nicki minaj nabbed two awards. her first ama win and bruno mars and maroon 5 took home trophies. "american morning" back after the break. what's going on here? hey, whats up guys? this is not how witness protection works! when we set you up with that little hardware store we didn't intend for your face to be everywhere. but fedex office makes it so easy. not only do they ship stuff, they print flyers, brochures -- everything i need to get my name out there. that's the problem. now we need to give you a third identity. you're paul matheson. and you're gonna run your business into the ground. erik gustafson would never do that! there is no erik gustafson. hey that's erik gustafson!!! there is no erik gustafson!!!!! [ male announcer ] small business solutions. fedex. solutions that matter. welcome back to "american morning." she's a supermodel, wife, mother, philanthropist and runs a charity devoted to maternal health. now christy turlington burns is putting the focus on less fortunate pregnant women in the world. 1,500 women die from pregnancy or childbirth complications every day. she shares the emotional stories of at-risk pregnant women from four corners of the world in the documentary "no woman, no cry." >> the clinic has one midwife, one nurse and only occasionally has a doctor available. >> human resource shortage is the biggest problem. i worked in a facility where i was the only obstetrician for 2.5 million people. the people are frustrated. they are overworked. when you try to tell them to work more you are stretching them too far. >> we are joined now by christy turlington burns, founder of every mother counts. great to see you. >> thank you. >> when you first told me about the project a couple years ago and you said you wouldn't believe how many women die of pregnancy-relateded complications, you said sometimes it's as simple as they can't get to the hospital. there is no transportation. but you began this journey because of something far more personal, right? >> i did. after delivering my first child, my daughter, eight years ago, i starteded to have a complication. i started to hemorrhage. after having a very good pregnancy and a good delivery, i was not prepared for something like that to happen. i learned in the few weeks or so afterward that the same complication i experienced was the leading cause of maternal death in the world. >> extraordinary. 90% of the cases are preventable. >> exactly. almost all. >> you actually made a journey to el salvador where your mother is from. this is a trip that hit home for you. >> it did. i spent my childhood going to el salvador. i was pregnant with my second child when i went down with c.a.r.e. and being in a community with no paveded roads, no access to clean water, no electricity really. i looked around and thought, had i had the first pregnancy complication i experienced here i would have died. >> there were many things that struck me when i was watching this. one thing that really struck me bringing it closer to home is you say abroad while it may be tough to get to the hospital or get to the facility or maybe there is not a doctor, once you get there many of the services are free. here in the united states we all know there is an abundance of services yet cost is the big factor. is that something that surprised you? >> it is something that surprised me. when i show the film people are most surprised by what they see for our statistics. services are free in so many parts of the world, but transport costs alone are a big enough barrier that would keep a woman from seeking care when she might need it most. >> there were cases in which had you not been there, your film crew, to transport a pregnant woman to the medical facility i don't want to think about what might have happened. >> yes. we did find ourselves in the couple of weeks we were in the countries filming that you become a valuable service. people know, oh, there are people we can depend on. normally the day after you leave there are no services like that. often times nurses into their own pockets to pay the transport fees. >> i want to talk about your directorial debut. your husband, as many know is ed burns, the famed actor and film maker. what was it like collaborating with him on this? i know you sought his advice along the way. >> i have always wanted to make a documentary film. it's a different process from the film he makes but him being in that world for so many years he understood how much you have to put into a project like that. i worked on the film for two years. he was an incredible support. >> tell us a little bit about "every mother counts." you started it after the documentary. >> i founded it last year because it's one thick to make a social issue documentary to get people to feel. i wanted to give people a way to get involved. >> how do they get involved? >> if you come to everymothercount.org we try to shine the light on programs that are working around the world. individuals, initiatives. we have several action items people can take to participate and get involved. it's important for people to feel they can make a contribution. i believe this is an issue that's universal. if people feel they can relate in the way i did having had a complication or not, it's something people can prevent. >> finally, you ran the marathon to raise money for every mother counts. how did you do and how much did you raise? >> we raised about $150,000 which was $100,000 more than we hoped to raise. we had the opportunity really to show what we do and the distance is a huge barrier for women seeking care. i did about 4:20. not bad. >> i run a marathon in closer to five hours. christy turlington burns, thank you for coming in. good for you for coming in. you didn't have to do it but you wanteded to. thank you very much. >> thank you. >> the dvd is available on december 6. just head over then to everymothercounts.org. christy will present in cnn heroes live on december 11th. we're back after this. welcome to idaho, where they grow america's favorite potatoes. everyone knows idaho potatoes taste great. but did you know they're good for you too? 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