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GOP Debate Comes With Heated Exchanges, High Stakes For Emerging Candidates; Report: Drone Strikes Kill 160 Children; Campaign to Marry Bert and Ernie; Rick Perry to Run for President; Wild Fluctuations on Wall Street
Aired August 12, 2011 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
T.J. HOLMES, CNN ANCHOR: Did Christine suggest the Cookie Monster was gay?
CHRISTINE ROMANS, CNN ANCHOR, "AMERICAN MORNING": No!
HOLMES: Did I hear that right?
ROMANS: I just said he is a blue furry monster. Who cares!
HOLMES: OK, OK. Just checking. I didn't know if I needed to put up the breaking news banner. That was new.
(CROSS TALK)
HOLMES: Guys, we'll see you again here soon. Thank you so much.
It is 9:00 o'clock on the East Coast and it is 6:00 a.m. out West. Wherever you may be, we are glad you're here. I'm T.J. Holmes in today for Kyra Phillips.
We are minutes away. Minutes away from that bell ringing once again on Wall Street. As the markets reopen today, what kind of a day will it be? Another wild ride? Well, some won't mind if it's wild in the right direction. Though, we have seen a historic week of volatility.
Also huge changes at the U.S. Postal Service. Administrators there are asking congressional approval to lay off 120,000 people. You heard me right.
Also across in Great Britain, and all across Great Britain now, the riots die down a little bit now. Maybe life getting back to normal in London. Nearly 2,000 people have been arrested in connection with the violence and looting we have seen there over the past week.
Maybe you didn't stay up and catch the Republican presidential debate last night, but let me tell you what you missed. You missed a doozie. It was a heck of a night with high tensions and some stakes of course. For some, it could have been a make or break event of their campaigns. And some will even tell you today that maybe at least one person on that stage was broken last night. We will get back into that.
Meanwhile, the person that actually may have stolen the spotlight wasn't even there. We are talking about that guy, Texas Governor Rick Perry. He is creating a whole lot of buzz and maybe a lot of excitement among some conservatives. Because tomorrow, it appears, he is about to make it official that, yes, he will get into the race and formally announce his bid for the White House.
The best politically team on television, in Iowa for us right now: Our Candy Crowley, Paul Steinhauser and our man, Don Lemon. We'll check in with each of them. Let's start with my weekend friend and political guru, Candy Crowley, host of CNN's "STATE OF THE UNION."
Candy, hello to you. Is that fair of me to say he was certainly a presence even though he wasn't on the stage last night, Rick Perry?
CANDY CROWLEY, CNN CHIEF POLITICAL CORRESPONDENT: Sure. And has been for the past couple of weeks, which is not bad when you're not even in the race. And we saw particularly the Bachmann people even after the debate last night were saying, gee, where was Rick Perry? Because when our candidate wasn't quite in the race she showed up for the CNN New Hampshire debate, so why didn't recognize Perry come? There is already push-back starting.
And interesting and predictable it would come from Bachmann, because if you look at who is most threatened at this point by the Texas governor getting in this race tomorrow, it would probably be Bachmann. Because we have widely said for a number of months, listen, it's going to be Mitt Romney who, right now, is the presumed frontrunner. He has got the money, he has got the name out there in the Republican party.
So it's going to be him versus the not Mitt Romney. And that is the slot that is open. Right now, it's being filled by Michele Bachmann. Obviously, Pawlenty and Huntsman trying to take over that position, but that is where Rick Perry is kind of aiming, at least in the short term.
HOLMES: Also some pretty smart politicking to leak this information out? To make the announcement tomorrow to make sure he's not in Iowa, maybe he is not in that straw poll, not he's not in the debate. He wanted to make sure he was a part of this news cycle and this story right now.
CROWLEY: Sure. And it's the easy part of it, because voters love politicians the most when they are not running for anything. Everybody looks great when they are not running. And you get in, and suddenly you're like just another politician. So not only are you in the mix, you're in the mix in the sort of elevated position of, oh, gosh, I haven't dirtied my hands yet in many whole political debate thing, or this whole straw poll thing.
So, look, it is a great position to be in. But let me remind you of Fred Thompson. Who in 2008 we sat around all summer, the Republicans going, oh, listen, you know, when Fred Thompson -- he's the guy. He is the guy. They were madly in love with him. He got in the race and he tanked. So, it can go either way. I will say rick Perry is a far better campaigner than Fred Thompson ever was, but nonetheless it's not predictable to go, oh, gosh, he is so popular. He is popular because he is not running and let's see what happens when he gets in.
HOLMES: Candy, always appreciate seeing you.
CROWLEY: Thank you.
HOLMES: And we will see you again in 10 minutes. Thank you so much.
Meanwhile, yes, the battleground seems to be Iowa, but it was clear last night that Minnesota was actually at the heart of a turf war last night. Tensions really boiled over with two officials from that state. We are talking about the former governor, Tim Pawlenty, he went after Congresswoman Michele Bachmann over what he says is her failure in Congress. But she certainly shot back. Listen to this.
(BEGIN VIDEO CLIP)
MICHELE BACHMAN, (R) PRESIDENTIAL CANDIDATE: When you were governor in Minnesota, you implemented cap and trade in our state. You said the era of small government was over. That sounds a lot more like Barack Obama if you ask me.
(END VIDEO CLIP)
HOLMES: Our Paul Steinhauser is in Iowa as well.
Them fighting words, Paul.
PAUL STEINHAUSER, CNN DEPUTY POLITICAL EDITOR: Yeah, definitely fighting words. Remember, our last debate was our debate and that was in New Hampshire two months ago. What has happened since then? Well, Michele Bachmann done quite well in the national polls, she is on top of the polls in Iowa; Tim Pawlenty, not so well. So there is a lot at stake for both these candidates.
I think that is why you saw this dynamic. They have been doing it on the campaign trail for a while, they did it last night on the stage. They both have a lot to gain. But also, maybe more potentially to lose in that crucial straw poll tomorrow in Iowa.
Another dynamic, Mitt Romney. You and Candy were just talking about him, the perceived front-runner. He did not come under that many attacks last night, but remember that big moment back in our debate in New Hampshire when Tim Pawlenty had a chance to go after Romney for Romney's health care plan and the comparison to Obama's plan? Pawlenty didn't do it, but last night he did. Take a listen.
(BEGIN VIDEO CLIP)
TIM PAWLENTY, (R) PRESIDENTIAL CANDIDATE: Obamacare was patterned after Mitt's plan in Massachusetts. And for Mitt or anyone else to say that there aren't substantial similarities, or they aren't essentially the same plan, it just is incredible. That is why I called it Obam-ney-care. I think that is a fair label. And I'm happy to call it that again tonight.
MITT ROMNEY, (R) PRESIDENTIAL CANDIDATE: I think I like Tim's answer in the last debate better.
(LAUGHTER)
(END VIDEO CLIP)
STEINHAUSER: Not a bad comeback from Romney, huh?
Listen, the action moves right here today. We have the bus here. We are at the state fair. You have abut seven of the presidential candidates making the rounds here. This is retail politics really at its finest, I guess, you could say. Then action moves back to Ames tomorrow for the straw poll. Guess what, guess who may also pop into town, right here at the state fair today? Sarah Palin. T.J., back to you.
HOLMES: But of course. Paul, we will check in with you all plenty. Thank you so much.
It's seven minutes past the hour. Let's turn to the markets now. The opening is about 23 minutes away. And what will it be today? If it follows the pattern we have seen this week, then we are going to see a down day.
Let me explain what we have been seeing. Down up, down up, down up. Since last Thursday, the Dow has fluctuated -- not just fluctuated, but fluctuated wildly, losing, then gaining more than 400 points in five straight sessions. So what about today? Christine Romans is joining me now from New York.
Christine, is the word "calm" that we are looking for? And are there some signs, at least some new info coming out that could calm investors down?
ROMANS: Maybe. But even when you see the market going up, it's not calm, when it's going up either. This is all about volatility.
I'll tell you what is happening, T.J. Why you are seeing days like that? It's because the market, investors, sentiment, the world trying to figure out is the world going into a rut or recession again? Specifically the biggest economy in the world, the United States? Every time a little bit of news that tips things one way or the other from rut or recession, you get a big swing in the market.
Today, it tips us toward just rut. There is a retail sales number from the Census Department that shows that retail sales in the most recent month were up 0.5 percent. What that shows you is after consumers saving a lot of money in June, they spent a little bit on gas, on electronics, on some other things in July; $390 billion worth of stuff we bought in July and that actually shows you that the American consumer is not dead, is still out there chugging along. Shoppers busy holding things up. Remember, this is a consumer-driven economy.
So that is the reason today, at least at this moment, the feeling is maybe, maybe the U.S. avoids, or has a better chance of avoiding a double dip recession. And this is just a rut and we will get back on the road to recovery again, and why you're seeing futures up right now, T.J.
HOLMES: All right. We still got 20 plus minutes to go. We will check in with you again. The markets opening at the bottom of the hour. Christine, thank you.
It is nine minutes past the hour now.
How is this for an idea? Clamping down on social media and keeping some people from using it. An idea floated by the U.K. Prime Minister David Cameron. He is considering this after the riots that rocked London and some of the other cities. Let me bring in our friend at CNN International, Jonathan Mann, here.
Why does he want to do this?
JONATHAN MANN, CNN INTERNATIONAL CORRESPONDENT: Can you imagine a crime that involves 2,000 arrests? Nearly 2,000 people that the police have nabbed for being involved? How does something that big, across so many cities, so many neighborhoods of London happen spontaneously? The British government says it didn't happen spontaneously. It was organized, it was organized using Twitter, Facebook and BlackBerrys.
In fact, they have a point. Facebook acknowledges it took down some pages that incited the violence and Blackberry says it will in fact work with police to try to figure out who was using Blackberry to message other people to know where, to go where the police weren't, and the looting was still good.
All that is happening, as the British government says, maybe we, as you mentioned, have to look into turning some of these things off when things get bad. That is really, really interesting impediment to our freedom of the speech. British press isn't very happy about it. Have a look at "The Independent". One of the most important newspapers in the U.K.. It is calling this the prime minister's Draconian gimmicks.
It says, they are the "sort of thing that has been attempted by Middle Eastern autocracies in the face of revolts from their own oppressed populations. It is embarrassing," the newspaper says, "that our own prime minister should be contemplating dragging Britain down that particular dead end street. Mr. Cameron is making a massive error if he imagines that these riots would not have happened without Blackberries and Twitter."
It is not just in the U.K. that people are noticing this. I mean, freedom of the press is pretty basic. Britain gave it to the world in a sense. "The Globe & Mail" in Canadian calls it "David Cameron's counterproductive attack on social media". It says, "It is panicky and facile, and if adopted would undermine freedoms the country has helped contribute over centuries to the world. Free flow of information is a democracy's life blood and it needs protection, too."
People aren't happy about this. On one side it's like crying fire in a crowded theater. Clearly there has to be some control on what people do in unrest, but would you take away phones to keep people from committing crime? Would you take away mail? You know, we can't all be silenced.
HOLMES: When might he make a decision on this? He is just mulling it over right now?
MANN: He is mulling it over. This is kind of a big step. I don't think the British are going to rush into it.
HOLMES: All right. Jonathan Mann, our friend from CNN International. Good to see you, as always, buddy. Thanks so much.
We are 11 minutes past the hour now. Republican race for the White House? And there he is, the newest entry. He is just hours away from making it all official. We will take a closer look at the guy that everybody is talking about right now, Texas Governor Rick Perry, and how exactly is he going to shake up the campaign? And also maybe Obama's strategy?
You don't hear this from a criminal suspect every day. "I deserved to get shot." We will tell you who in the Dougherty gang said they deserved what they got. That is coming up after the break. Stay with us.
(COMMERCIAL BREAK)
HOLMES: It is 14 minutes past the hour. Checking stories "Cross Country" now.
In San Francisco, an unusual move by police. They stopped a protest by blocking cell phone service. They had gotten word that there might be a repeat of some of the demonstrations they had seen last month at public transit stations that kind of just shut down public transit during rush hour. But with all of the cell phone service shut down in the area, police say the commute went off without a hitch this time.
Also, the sister in the so-called "Dougherty Gang" telling the FBI, "I deserved to get shot." She was shot in the leg after a shoot- out with Colorado police on Wednesday. Lee Dougherty is her name. You saw her in the previous picture. She was there smiling.
These are new pictures we are seeing of the three. There she is again. Yes, that's the one that was shot.
She is now facing criminal charges but she got a big grin on her face. They're all wanted for armed bank robbery in Georgia and attempted murder in Florida. Next court date is set for Monday.
Also, we have no excuses for saying we can't come up with a way to help. Listen to this. Two Springfield, Oregon, kids are trying to help raise money to fight hunger in Somalia.
Do you know what they're doing? Simply selling snowcones. You know what it costs you? Fifty cents a piece. But still, they're trying to do their part.
Amaya and Jonathan are their names. They are nine and six years old and say after seeing the news reports, they just wanted to pitch in.
And how can you not help but want to pitch in? So, here is your chance to do so. If you'd like to help the relief efforts in East Africa, don't sell snowcones -- or maybe do if you want to. But you can head on over to CNN.com/Impact to find out how you can pitch in as well.
Let's turn back to Iowa now. That clock is ticking towards tomorrow's all-important Ames straw poll -- presidential campaigns facing a pretty tough test of public opinion there. The stakes are so high that it's not a surprise last night.
You know, you hear the saying in these debates the gloves came off? But at times, it seems like they didn't bother to put on gloves in the first place as the eight declared Republicans came out swinging.
(BEGIN VIDEO CLIPS)
REP. MICHELE BACHMANN (R-MN), PRESIDENTIAL CANDIDATE: People are looking for a champion. They want someone who has been fighting.
TIM PAWLENTY (R), PRESIDENTIAL CANDIDATE: She led the effort against Obama care. We got Obamacare. She said she's got a titanium spine. It's her spine we're worried about. It's her record of results. If that's your view of effective leadership with results, please stop because you're killing us.
NEWT GINGRICH (R), PRESIDENTIAL CANDIDATE: I wish you would put aside the gotcha questions.
I'd love to see the rest of tonight's debate asking us what we would do to lead America whose president has failed to lead instead of playing Mickey Mouse games.
MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: I will not eat Barack Obama's dog food, all right? What he served up was not what I would have done if I had been president of the United States. What I would have done is cut federal spending.
RICK SANTORUM (R), PRESIDENTIAL CANDIDATE: He sees it exactly the way that Barack Obama sees it, that we have to go around and apologize for the fact that we have gone out and exerted our influence to create freedom around the world.
REP. RON PAUL (R-TX), PRESIDENTIAL CANDIDATE: In Iraq? They had nuclear weapons and we had to go in. I'm sure you supported that war well. It's time we quit this. It's time -- it's trillions of dollars we are spending on these wars!
(END VIDEO CLIPS)
HOLMES: All right. Let's me bring in Candy Crowley now to bring some civility back to the air waves here.
Candy, gotcha questions, Mickey Mouse games, titanium spine, Obama's dog food -- have we been waiting for this to get a little testy and a little nasty? And what we saw last night is letting us know the game is on now and the stakes are high?
CANDY CROWLEY, CNN CHIEF POLITICAL CORRESPONDENT: Yes. It's close to prime time, believe it or not. I know the election isn't until a year from November.
But in the primary season, August, there's a lot of commentary and a lot of discussion about whether or not this should matter as much as it seems to -- but, nonetheless, every debate counts. I didn't see any fatal errors. I didn't see any knockout blows.
I think the race is this morning where it was yesterday morning. Nonetheless, ratcheting up is a sign that, sooner later, some of those people on the stage are going to have to get off the stage. Sooner or later, some of those people are going to run out of money and you don't want to be the on that runs out of money.
So, who do you take on?
I mean, in Newt Gingrich's case, he took on the media. That is so popular to do to a Republican audience in particular.
Who did Tim Pawlenty take on? Michele Bachmann because she is the one kind of in his immediate way toward going after Mitt Romney directly.
So, people want to come away from a debate thinking that someone took command, you know? Somebody was tough because you want a tough president.
So I think that is what you're seeing and at this point, everybody is tough on President Obama, but they need to be tough on each other because you don't want to be the one that gets shoved off the stage and where you're getting close to a time where people are going to be exiting if, for nothing else, lack of money.
HOLMES: OK. But you said there no knockout blows you necessarily saw. Some are suggesting and some of the editorials and you read around that maybe Michele Bachmann delivered one to Tim Pawlenty last night. I know you're talking to Michele Bachmann coming up, getting ready for your program on Sunday.
So, I guess, how -- what do you want to know from her and follow up with her about from what you saw from her performance last night?
CROWLEY: Well, listen. I mean, I think there are a couple of things that concerns her. It concerns Tim Pawlenty.
This is kind of rolling coverage, I think we'd call in -- at CNN, and that is that you can't look at this debate as a singular event. It's part of three days in Iowa, today here at the Iowa state fair, we are going to hear most of these candidates out on the soapbox literally, talking to whatever crowd shows up.
And then you've got the Iowa, the Ames straw poll in which most of these candidates will give major speeches to the party faithful and then there will be a straw poll and that begins to maybe shape the race.
So, there are a lot of things coming and the answers are at least will be clearer a little bit, I think, depending on those Ames straw poll results on Sunday morning than they are right now.
Now, as far as Michele Bachmann and what do you want to ask, I mean, look. Tim Pawlenty has gone after her in her vulnerability and her vulnerability, at least in so far as being chief executive is concern is that her experience is limited. And we are looking at a race where Republicans are right now relying heavily on the fact that oh, we elected an inexperienced president and look what happened. We shouldn't do that any more. We need someone who understands business. We need someone who understands the real world.
So, that's a vulnerability for Michele Bachmann who has been framed by some of her opponents as not having the experience. She does have the passionate supporters and that's what has kept her in the headlines and jockeying for a first or second place position in a lot of the polls both here in Iowa and nationwide.
So, this is the time to be talking to her about what would you do about this? What would do you about that? You know? Does she have the chops? And it's a question for her and frankly a question for all of them.
HOLMES: All right. Candy Crowley, good to see you. We'll see you again here shortly.
We are at 21 minutes past the hour now.
And how about this? You lose your job one day. The next day, you win the lottery. It happened. We'll tell you about this change of fortune. That's next.
(COMMERCIAL BREAK)
HOLMES: All right. Twenty-four minutes past the hour, with our friend from CNN International, Jonathan Mann again.
You lose your job one day, the next day, you win the lottery. It can't get better than that, can it really?
JONATHAN MANN, CNN INTERNATIONAL: It's an amazing story. A group of workers in Ottawa found out they were all going to lose their jobs. And then one of them is sitting in his truck in the parking lot, looking at the lottery tickets they had been buying for years, and lo and behold, it's actually their lucky day. Let's hear what he listen.
(BEGIN VIDEO CLIP)
COLIN WILLARD, LOTTER WINNER: I looked at the numbers and I had to ask somebody to come and take a look at them because I wasn't sure if I was reading it right. And she said, oh, you got them all. You know, started to shake, vibrating in my seat and I had to get out and tell some of the people that were in it and, of course, nobody believes me! No, you're joking! No, I'm not joking! We won!
(END VIDEO CLIP)
MANN: Eighteen guys sharing $7 million. That works out to $400,000 a guy, which is 15 years salary for a bunch of people who are going to have no salary. So, there you go.
The name of their company is Smart Technologies, but maybe she should call it Lucky Workers instead.
HOLMES: Oh, my goodness. OK. So, we don't know what the guys are going to do next. They haven't said what they are planning to do. Take some time maybe.
MANN: Bless their hearts. One of them says his wife always wanted to visit New York and he plans to trade in his truck for one with an automatic transmission.
HOLMES: Very nice. Simple guys. You know, it's nice to see something like that work out.
MANN: Every once in a while, good news.
HOLMES: Jonathan, good to see you as always, buddy. Thank you so much.
And we're just minutes away from the opening bell on Wall Street.
Millions of Americans are wondering if their savings will take another beating. We will have the latest and have that opening bell for you. Stay with us.
(COMMERCIAL BREAK)
HOLMES: We are just about 60 seconds away from the opening of Wall Street. Once again -- oh, there are they are.
Christine, Alison, good to see you all once again. We have been doing this for the past several days and I can't help you but be nervous when we get to this point.
But, Christine, if things stay true to form at least that we have seen this week, we are about to see another dramatic drop today. Tell me why we will maybe break that course of action we have had this week.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Well, I would not put much weight on the last four days for any kind of a pattern, because I'll tell you, the trend has been the unexpected and the unpredictable.
You know, the markets are the sum of all the fear and greed and hopes and expectations and profit reports and speculation in the market of thousands, if not hundreds of thousands of participants.
So, it's pretty volatile on a normal day. It's been really volatile lately.
We'll be watching to see how this pans out. We'll also be -- a lot of talk today about Europe, a ban on short selling in Europe. Maybe that will calm things down a little bit there. That is in Italy, France, Belgium and Spain. That means if you don't know a stock, or don't own an investment, you can't sell it.
I know it sounds crazy, right? You don't even own it, but you're selling it. But that is what goes on in markets and sometimes, to try to calm things down.
They do that in 2008 in this country. The jury is out whether it really helped. But there is a lot of talk about that in the marketplace today.
Also, talk about whether the economy might be a little bit brighter than we thought. But it's day-by-day and minute-by-minute, isn't it, T.J.?
HOLMES: Yes. And, Alison, you have been trying to calm me down all week, because I get excited. We're up 31 points right now.
ALISON KOSIK, CNN CORRESPONDENT: Have I done it? Have I been successful?
HOLMES: Not really, because I see plus 34 points and I get excited, 30 seconds into the trading day. And that is because just what we have seen all week.
So, what will the futures looking like coming into this day and is it possible, from whatever indicators we have been seeing with the futures and also indicators and information that's been coming out, that maybe things could calm down and we might not see a wild swing this week, or today, I should say.
KOSIK: You know what? I am the optimist, at least for today. And you know what? Anything is possible.
Look. We are almost up a hundred points on the Dow. And today, what Wall Street are hanging its hat on are some new numbers, because what Wall Street does is it takes its cue from the economic reports that come out.
So, we got one on retail sales. Consumers, we found out aren't going on the huge sprees, but these numbers show that they are not totally gone either. So, that is why we are seeing stocks higher.
Retail sales rose a half percent in July. That was expected. And June's numbers, they were revised higher.
Now, I know these numbers aren't huge numbers, but what they are doing is sort of calming, calming everything down a bit at a time when we have been getting, you know, this constant drum beat of weak economic reports. But, remember, things could always change because these numbers were from last month, before the U.S. credit rating was downgraded.
So, consumers may be worried about that. They may be worried about all the volatility in the stock markets. But we won't see how consumers feel about that until we get next month's report.
But you know what? TGIF takes on a whole new meaning today, don't you think?
HOLMES: It absolutely does. So, we're getting off to a good start. And you all know, the past few days, we kind of ended up finishing how we started. So, if we are starting in positive territory today, you know what? I know it's two minutes into the trading day, but I will take it.
Christine, Alison, I'll see you both here shortly.
KOSIK: Sure.
HOLMES: Let's turn back to politics here at the bottom of the hour. You know there was a Republican presidential debate last night in Iowa. Certainly got testy. So you've heard from the candidates but we need to hear from the folks who are going to be choosing their candidates.
Our Don Lemon is in Des Moines for us.
Don! How are you doing, kind sir?
DON LEMON, CNN CORRESPONDENT: What's up?
HOLMES: Can you tell me -- have you gotten much reaction to that debate last night? It was a little testy.
LEMON: Not really.
HOLMES: Yes?
LEMON: And I'll tell you why. Seriously, people who are watching it. But for the politicos and people who are in the news, it's a much bigger deal. Most people aren't paying that much attention to it.
Even -- I have to go back and find it in the hotel and go to a bar that actually had it on. I think most people honestly are worried about, do I have a job? What is happening with the economy? My 401(k) and that sort that sort of thing. They're not talking about it.
LEMON: You know, it's 15 months out.
And so, the people we caught up with -- we're here at the state fair, by the way. The people we caught with had other things on their minds. As I said, a little bit politics, some of them couldn't get the names of the candidates straight.
Listen and then you and I will talk about it.
(BEGIN VIDEOTAPE)
LEMON: Here are the fair queens?
UNIDENTIFIED FEMALE: Yes. All of the counties in Iowa.
LEMON: What candidates you do you like?
So, who do you have in mind?
OK. Who is your favorite candidate?
UNIDENTIFIED FEMALE: For like big time or for like here?
UNIDENTIFIED MALE: Perry.
UNIDENTIFIED MALE: Probably the best one there is Michele Bachmann.
LEMON: Big time.
UNIDENTIFIED FEMALE: I say Roxanne Bachmann.
LEMON: Roxanne Bachmann?
UNIDENTIFIED FEMALE: Yes, for sure.
LEMON: Why?
UNIDENTIFIED FEMALE: She understands what the girls think and what the girls want.
UNIDENTIFIED FEMALE: She is not necessarily on my list.
LEMON: She is not in your list?
UNIDENTIFIED MALE: She is on mine.
LEMON: She is on your list?
UNIDENTIFIED MALE: Yes.
(END VIDEOTAPE)
HOLMES: Oh, Don! Don!
LEMON: Roxanne Bachmann.
HOLMES: Don, Roxanne Bachmann?
LEMON: What? Come on, dude! Yes. Roxanne Bachmann, that's what she said. At first, she thought I was talking about the candidates in the county fair thing and then she said, you mean, locally or big time? I said big time, and she goes, oh, yes, Roxanne Bachmann.
HOLMES: That's an honest mistake there.
LEMON: But listen -- let me tell you what people are talking about. I find it a bit ironic. This is a little fun here. So, this is "Iowa aims to be number one in health," do you see that? Have this whole pledge they want to be number one in health.
The state fair is going on. Among the things can you get, this is nice little funnel cake here dripped in some healthy syrup that you can get. And then this is -- got some loaded fries for you and among the other things you can get fried butter and fried beer, deep fried candy bars and who a whole bunch of stuff. I think that's what -- you know, most people are finding interesting. They want to end their summer on a good note and have some really nice fried healthy food here in Iowa.
HOLMES: You know what? You make a good point there. I know these fairs have always had food and things we often talk about.
And the politics is happening there. But like you said, a lot of people there you say are having a good time, enjoy some of that food, and the politics kind of comes second to them. Although it might be a big deal like you said.
LEMON: Well,: it's 15 months out.
HOLMES: Yes, 15 months out.
LEMON: It's 15 months out. As we get closer, as we get couple of months in, maybe six months in, more attention but certainly it deserves to be talked about and made people aware of it but it's a long way off.
HOLMES: All right. Roxanne Bachmann, that's pretty good. Don, good to see you as always, buddy.
LEMON: Roxanne --
HOLMES: Thirty-five minutes past the hour.
Well, he wasn't at the debate last night. He is not in the straw poll tomorrow. But Rick Perry is about to crash the party in Iowa. We are talking about the Texas governor's mix of religion and politics. That is next.
Stay with me.
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HOLMES: Thirty-nine minutes past the hour now.
Texas Governor Rick Perry is set to announce his candidacy, getting into the race, even hearing that he could really shake things up. But how much do you really now about this Texas governor?
He's actually a fifth generation Texan. He was actually a Democrat and was state chair for Al Gore's failed '88 presidential bid. He was actually talked into the GOP by Karl Rove. You know that name, don't you?
Also, he was elected lieutenant governor back in '98 and then moved up to the top spot there to become governor of Texas after George W. Bush went on to the White House. He did embrace the Tea Party early on and also, he's an avowed Christian conservative, even hosted a prayer rally last weekend.
And on that note, let me bring in our friend Dan Gilgoff at CNN.com. He's our religion editor.
He is positioned uniquely in this race because he doesn't mince words when he talks about his religion.
DAN GILGOFF, RELIGION EDITOR, CNN.COM: That's right. And even more than that, recent weeks , we've seen this intense back and forth. This courtship between Governor Perry and evangelical Christians.
And it's not just him reaching out to them. It's them calling him, meeting him and his people. And what's so fascinating is that a lot of these relationships were born just in the last week or so, since this big prayer event in Houston. And already, you could sense the enthusiasm among evangelicals about him declaring his candidacy. They were waiting for him to do so.
HOLMES: Now, that prayer rally you just mentioned, he got some criticism from some people within his own state, but it sounds like it might have been a net positive for him, at least nationally.
GILGOFF: Yes, much so. If you talk to the Christian leaders that were involved in that prayer rally last weekend, they'll tell you that the planning got under way late last year. And so, this was before Perry was seriously mulling a run for the presidency.
And then what happened is Mike Huckabee, the other big potential evangelical heavyweight in the race decided not to run. So, all of a sudden, all of this organizing around the big prayer event starts to take on all of this political import and people that are planning it starts to get worried that, oh, my God, what did I sign up for here? I was signing up for a prayer, now, it looks like I'm backing this guy for president.
HOLMES: OK. And also, on that prayer rally as well, without him saying a word, people are suggesting he is positioning himself against Mitt Romney. Mitt Romney, of course, is a Mormon. Mormons are Christians, but still -- it's still to a lot of people not something they really understand.
So, without him saying a word, it was like he was firing a shot at, hey, I'm your kind of Christian. I don't really understand that Mitt Romney guy without even actually saying it.
GILGOFF: Yes. I think that's true and I think that's so much of the Christian enthusiasm among conservatives about Perry running for president, has everything to do with Mitt Romney. They are looking for somebody who is on the one hand, an evangelical darling, someone who is socially conservative, has passed antiabortion legislation and Perry has done all of those things.
On the other hand, avoiding a scenario in 2008 where they have this overly evangelical candidate, Mike Huckabee, a former preacher himself who wasn't able to get beyond the evangelical universe and connect with mainstream voters. And they think that because Perry is so popular within the business community, Texas has added a lot of jobs as the rest of the nation has suffered economically, he could be that guy.
HOLMES: That is exactly why people are paying attention with him getting in the race tomorrow. I think he is about to shake things up.
Dan, always good to see you. And the piece is posted on, the Belief Blog now?
GILGOFF: That's right. CNN.com/belief.
HOLMES: There you go, folks. Dan's piece on Governor Perry. You can catch it there. Also, you can post your thoughts and your comments.
Dan, always good to have you, buddy.
We're 42 minutes past the hour now.
And the United States has now done something it hasn't been doing. This is an about-face on long-standing policy of not talking about military drone strikes targeting Pakistan. We'll tell you about a new report that got the U.S. to start talking.
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HOLMES: Well, a life-saving organ transplant tops our look at "Cross Country" and it's a story that many people will tell you sums up Semper Fi. This is in California where Marine Sergeant Jake Chadwick is getting used to a new transplanted kidney. That kidney used to belong to his fellow Marine Lieutenant Patrick Wayland who died during a survival training exercise in Florida.
Also, let's turn now to Chicago. That's the home of the Misdemeanor Wiener? It is celebrating its first amendment legal victory today. That's a place that's called "Felony Franks" and it has been embroiled in a two-year-old lawsuit. A city alderman was fighting a permit application for the business sign saying it sent a bad message to kids.
Well, the alderman lost in court. The sign now up and, today, you can get a Misdemeanor Wiener for $1.50.
All right. Let's turn to the U.S. Postal Service now. And you are not going to believe how many people they are trying to lay off and they say it's necessary. The Postal Service is looking to cut as many as 120,000 jobs and they are asking for Congress to help by removing the collective bargaining rights of unionized postal workers. They have been billions and billions of dollars in the red over the past several years.
Well, let's turn now to the U.S. pushing back on a report that claims U.S. drone strikes inside Pakistan have killed nearly 2,300 people. Many of them civilians and that includes 160 children, at least according to this report.
We bring in CNN's Reza Sayah, he's live for us in Islamabad. What is the response the U.S. is giving to this report?
REZA SAYAH, CNN INTERNATIONAL CORRESPONDENT: Well, the U.S. says this report is inaccurate and false. But certainly this subject of drone strikes, one of the most controversial issues when it comes to U.S./Pakistani relations. It's an issue that has undermined the relation between Islamabad and Washington.
And it sparked the debate whether drone strikes are an effective strategy in the fight against militancy. And this report is certainly going to fuel that debate.
Let's tell you about the report done by a U.K.-based group of Pakistani and British journalists. The report essentially says these U.S.-drone strikes on Pakistani soil are killing hundreds of civilians, including lots of innocent children.
The report says ever since 2004, there has been roughly 290 U.S. drone strikes, those drone strikes have killed more than 2,000 people. Among those people, 380 civilians have been killed according to those reports, and included in those 160 children. This is, obviously, a report that doesn't bode well for what Washington is trying to do in Pakistan and that's to win hearts and minds here in Pakistan.
So to repair their image, so it's no surprise that a U.S. official has told CNN that this report is inaccurate. According to Washington, these drone strikes have killed more than 2,000 people since 2001 and only 50, only 50 of those victims, according to a U.S. official, have been civilians.
The problem, T.J., is verifying who is telling the facts, because access to the tribal region where these U.S. drone strikes are taking place is -- is off limits. So we're left with two sides that are giving us two different versions. Certainly a controversial issue between these partners in the fight against militancy.
HOLMES: All right, Reza Sayah for us in Islamabad. Thank you.
Well, at 48 past the hour now.
Some are saying the United States has been tap dancing around the Syrian regime's deadly crackdown on protesters. Well, U.S. policy may now be changing. That's coming up next hour.
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HOLMES: All right, about nine minutes off the top the hour now.
Stories making news later today, President Obama welcomes the Super Bowl champion Green Bay Packers to the White House. That happens just after 2:30 Eastern Time.
Then, at 5:00 Eastern Time, GOP presidential candidate, Michele Bachmann speaks at the Iowa State Fair Soapbox.
And Texas Governor Rick Perry, he is the keynote speaker at the Alabama Republican Party's summer dinner that happens later this evening.
We are also following a number of other developments next hour here in the CNN NEWSROOM. So let's check in with our folks and let's start with Paul Steinhauser in Des Moines, Iowa for us.
PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Hey, T.J., a contentious, contentious Republican presidential debate last night. We're going to break it down and talk about who said what and why it matters.
Plus, you've got that crucial straw poll tomorrow just 30 miles from here. And as you mentioned, the race for the White House right here at the State Fair, Sarah Palin is coming our way as well. All that and more at the top of the hour.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: I'm Christine Romans in New York. We're making history in the stock and bond markets this week. What does it mean for your house, for your job, for your retirement? There will be no Wall Street jargon here. We'll explain exactly what it means coming up at the top of the hour.
REYNOLDS WOLF, AMS METEOROLOGIST: And I'm CNN meteorologist Reynolds Wolf here in Atlanta. And we've got a story for you that is out of this world. We're talking about the Perseid meteor shower, exactly where it is, best places to view it. We'll let you know coming up in just a few minutes -- T.J.
HOLMES: All right, I -- I think I like your story best, Reynolds. All right, guys, Paul, Christine, Renny, see you all here shortly. Thanks so much.
So we're getting closer and closer to the top of the hour. And yes, the economy may be down, but you have not stopped drinking that wine, have you? America's wine industry still has something to celebrate. That's ahead in the next hour of the CNN NEWSROOM.
(COMMERCIAL BREAK) HOLMES: All right. Let's bring in our friend Jeff Fischel talking a little sports here with the "Big Play" today. It was ugly yesterday. It started off so well for Tiger. There was some hope for Tiger yesterday.
JEFF FISCHEL, HLN SPORTS ANCHOR: Everyone thought maybe coming back off the injury, he might be finally ready. Oh boy, it was not pretty. It was really a tale of two golfers at the Atlanta Athletic Club, one guy has won 14 Majors, Tiger, the other guy zero. But this one didn't go by the books.
Steve Stricker is your opening round leader. And what a way for the top-ranked American to start, a 63, seven under, ties the record for the lowest round in a major, had only 24 putts. Stricker is great. And really this is a guy you can say deserves to win a major by now at this point in his career.
But then there's Tiger, 14 strokes back after day one, he's seven over. It's his worst opening round ever at any tournament. He went to drink there. I mean, man, was he spending a lot of time at the beach, 13 bunkers. Tiger is in real danger of not making the cut.
U.S. Open winner by the way Rory McIlroy injured himself when he hit a tree root with his seven iron. Ouch, had to get his wrist tape it up. He stayed in and finished even par.
Coming up next hour, we'll go live to the Atlanta Athletic Club for a check on today's play, second round.
But everyone wondering can Tiger turn it around even just to make the cut. Might be a little bit of victory, but boy how the mighty have fallen. We're talking about Tiger is making the cut as a victory.
HOLMES: All right. It was ugly. I'm looking forward to next hour --
FISCHEL: Yes, T.J.
HOLMES: Happening right here in Atlanta.
FISCHEL: Yes, thank you.
HOLMES: Thank you so much, Jeff. We'll talk to you again here soon.
Well, they've been roommates for more than four decades now. And some say two of "Sesame Street's" most beloved puppets may be gay. Now, just weeks after New York legalized same-sex weddings come to cyber campaign to a same-sex puppet or muppet, I should say, marriage.
Jeanne Moos reports.
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JEANNE MOOS, CNN NATIONAL CORRESPONDENT: Do Bert and Ernie have a secret? Are the "Sesame Street" muppets coming out of the closet?
JIMMY KIMMELL, TALK SHOW HOST: What if they are gay? What if they're neck deep in each other's fuzz every night?
MOOS: The gay buzz has been around for years but now there's an online petition asking "Sesame Street" to let Bert and Ernie get married. The petition was dreamed up by gay activist Lair Scott.
LAIR SCOTT, GAY ACTIVIST: When I was nine years old, I wondered if they were a gay couple.
MOOS: There's been a lot of purely circumstantial evidence.
SCOTT: They sleep in the same room.
MOOS: They take baths together. Look at the photo on the wall.
UNIDENTIFIED MALE: That's our picture.
MOOS: Oh, sure there are counter-indications.
KIMMEL: Let's talk about Bert's eyebrow. No self-respecting homosexual would leave a unibrow like that unplucked. If there's one thing gays do, it's pluck.
MOOS: They've been together more than 41 years and just as folks speculated that the Pinky Winky, the purple Telly Tubby with the purse was gay, rumors have swirled around the roommate muppets.
UNIDENTIFIED MALE: Bert, not gay. Ernie very gay. No matter how hard you try, Ernie, and I've tried, believe me, you can't switch them.
MOOS: But the petition to let Bert and Ernie marry has spawned petitions to stop them. "New York Daily News" even wrote an editorial on the subject entitled "They're Just Muppets." It sarcastically asked, why stop there. Why not march Yogi Bear and Boo Boo down the aisle, too? Funny but not applicable.
The creators of "Sesame Street" are not budging. They say Bert and Ernie are best friends. They remain puppets and do not have a sexual orientation. The denials don't stop suggestive songs like the one from show "Avenue Q."
The petition organizer knew when he was 5 years old.
SCOTT: That I had an attraction to Tarzan.
MOOS: So he wants role models for other young gay kids watching TV. Though chances for a wedding for Bert and Ernie seem nil, still someone joked, will the reception be in Oscar's can?
Ernie may proclaim who he's true to.
But the gay spoofs keep bubbling up.
Jeanne Moos, CNN, New York.
(END VIDEOTAPE)
