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Freed Murderers 'Hit the Road' in Mississippi; President Obama Asks Congress For Authority To Shrink Federal Government; Obama's Consolidation Would Cost 1,000 to 2,000 Jobs; New Poll Numbers as GOP Candidates Campaign in S.C.; Romney Defends Business Record; 7 Killed in Syria, Some Children
Aired January 13, 2012 - 11:41 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SUZANNE MALVEAUX, CNN ANCHOR: President Obama making that announcement.
I want to bring in Wolf Blitzer and Alison Kosik for a post-game analysis here.
First, let's go to you, Wolf.
What's significant is the Small Business Administration cabinet- level agency there. That was significant. But also the fact here is that he has got to get Congress on board, first, for this fast track authority that he's asking for. And then for these kinds of consolidations, the cuts that he wants to make. Is it likely at all, Wolf, he can get Congress on board?
WOLF BLITZER, CNN HOST: I suspect it's going to be a little difficult but he has a good shot at doing it. As far as the Small Business Administration being elevated to cabinet-level status, he can do that on his own with an executive order. He can say the United States ambassador to the United Nations is a cabinet-level position, for example. He doesn't need congressional authorization to do so. He can do that on his own.
What he's seeking is an up-or-down majority vote in the House and the Senate to go ahead and make other changes, consolidating -- for example, consolidating all these various international trade agencies that the U.S. has designed to promote U.S. experts, the Export-Import Bank or OPIC, as it's called, the Overseas Private Investment Corporation, the Office of the Special Trade Representative.
All of these are various agencies within the Department of Commerce. He can unite them. But he needs the authority from Congress. So he doesn't want a filibuster. He doesn't want any 60 votes in the Senate to do it. He wants to do it with a majority vote. That's what he's asking for. Ronald Reagan asked for it from the Democrats who controlled Congress in the 1980s. And he lost it. The president is seeking to regain it right now. We'll see what happens.
But you make a good point. This is a political year, an election year. Who knows what's going to happen once the proposal gets up to Capitol Hill. Because you know, Suzanne, and the president makes a good point on this. There will be various turfs. There will be various lobbying organizations that won't like it for whatever reason because it affects their respective businesses. And those K Street lobbyists have a lot of clout in Congress.
MALVEAUX: Wolf, from purely a political point of view here, does it matter what Congress does? Isn't it the idea the president puts the onus on Congress to move this thing forward, almost like he's daring them, saying, I dare you to vote against making the government leaner here. I'm trying to do my part for the middle class. Why aren't you doing yours?
BLITZER: Yes. This is the do-nothing Congress that White House officials and Democrats talk about from the Harry Truman play book, if you will. He's sort of poking them in the eye. Look, I want to do this. Every other day he's got some new initiative and Congress reacts usually negative, the Republicans at least. So there's a feud going on between the White House and the Republican leadership in the House of Representatives, the Republican minority in the Senate.
It's tough politics. And I don't know how much is going to substantively get resolved this year before November, before the election, because so much of this plays into a political election year. We'll see if there's some cooperation.
But I think, on this particular point, the Republicans, like the Democrats, they want to consolidate. They want to shrink the government. They want to trim it. So this would seem to make some sense. I don't know how much opposition there will effectively be when the president says we want to cut the number of government jobs. We want to consolidate the agencies. That seems to play right into the Republican playbook. That's what they've been propos proposing for a long time.
MALVEAUX: Thank you, Wolf.
I want to bring in Alison.
Alison, the White House says that 1,000 to 2,000 jobs may be cut with the consolidation, mostly through attrition, people retiring, the jobs get absorbed. Is this plan going to cost people jobs?
ALISON KOSIK, CNN CORRESPONDENT: It would. It would, just because this plan looks at about 2,000 jobs cut through attrition, as you mentioned. But you have to look at the flip side. Wolf talked about it's all about cutting spending. You have to think about, the government is sitting on $15 trillion in debt. And what this country is facing with the economy -- there's not one silver bullet. You can't raise taxes without cutting spending. And in cutting these jobs, what happens is, over 10 years, the president's plan initially saves $3 billion in spending. So that's a good thing. The smaller streamlined government also means less red tape.
He talked about how, in the audience, a lot of small business folks were in the offices. That could mean good things for people in small businesses. Hopefully, even a faster process to get a small business loan. Because the Small Business Administration, as you heard, is one of the areas the president wants to streamline.
Once again, it's that spending. His spending will initially save billions of dollars over 10 years. And that will help reduce the debt load. It's the baby steps that certainly have to be taken to get the economy back on its feet. Sometimes it doesn't seem like a big move, but every bit helps -- Suzanne?
MALVEAUX: Alison, this consolidation, when you take a look inside the government, does it make much of a difference when you look at the big economic picture? These little baby steps that you're talking about?
KOSIK: You have to start somewhere, first of all. It's not going to feel good to see jobs just go away. You look at the economy right now, the bad timing of it. 13 million people are out of work right now. It means that thousands of jobs will just go away. So clearly not an easy pill to swallow. The economic recovery is not on solid footing. And you look at our GDP, our GDP rate at 1 percent pace through the third quarter of last year. To see that GDP rate go up, to see more growth in the economy, you need to see jobs growth. So when you hear about jobs being cut, you get a little concerned, at least in the short term -- Suzanne?
MALVEAUX: Alison Kosik, thank you so much. Have a great weekend.
We'll be back after a quick break.
KOSIK: You, too.
(COMMERCIAL BREAK)
MALVEAUX: We're watching developments on the campaign trail, all things political.
South Carolina primary just eight days away. Several candidates have campaign stops in the state over the next couple of hours. One of them is in Florida. Newt Gingrich, he is attending the hoping of his campaign headquarters in Orlando this hour. Mitt Romney speaking in Aiken, South Carolina, next hour. Rick Santorum campaigns in York, South Carolina. Rick Perry will be in Bluffton.
Mitt Romney fighting back against attacks on his business record by two of his rivals. Newt Gingrich and Rick Perry has hammered Romney over his work at the private equity firm, Bain Capital.
Joe Johns joins us live from South Carolina where Romney will be speaking and campaigning within the next hour, the man who is out on front.
You've got new polling out of South Carolina today, Joe. What does it say?
JOE JOHNS, CNN SENIOR CORRESPONDENT: Interesting numbers, Suzanne. A new poll shows that Mitt Romney has actually lost a couple of points in the most recent poll. Newt Gingrich has picked up a couple of numbers. Just look at the numbers and we'll talk real briefly. Romney at 29 percent, Newt Gingrich at 25 percent. Ron Paul has picked up a lot of support there, apparently at 20 percent. Then all of the others, Rick Perry at 9, Santorum at 7. He's lost quite a bit. Jon Huntsman at 1 percent. He had that strong finish in New Hampshire. And then there's undecided at 7.
The big story here, very probably is about how much some people in the field have actually lost points, including Rick Santorum. And the fact that Newt Gingrich appears to be running strong in South Carolina. Not that big of a surprise, because he's from the south, from Georgia. The former speaker of the House has been pushing hard here.
One thing I don't think we are ready to say is that these attacks involving Bain Capital and the business practices of Mitt Romney have had any effect at least on this poll. It's not clear at all that that's the case. So watching the polls, also watching this location in Aiken, South Carolina, looking for Mitt Romney here within the hour.
Suzanne, back to you.
MALVEAUX: Joe, what's the mood like there? What's it like, all those folks behind you there. Are people excited, revved up to go?
JOHNS: Yes, they are rolling in. You know, Mitt Romney has been able to attract some very large crowds. It looks like this is going to be quite a crowd here this afternoon. Because the people started filing in quite some time ago and I would almost predict that this will be standing-room only. He's got a lot of people coming out to take a look at him. His big problem here, perhaps, is evangelicals and social conservatives, those value voters. It looks like Newt Gingrich is doing real well with them, getting about 40 percent support from that group of people. And the question is whether Mitt Romney can sort of eat into that by making his case here in South Carolina. We'll see.
MALVEAUX: All right. We'll see. Thank you, Joe.
As Joe mentioned, Mitt Romney may be the front-runner but some Tea Party Republicans are not ready to rally behind him just quite yet. In the next hour, we'll talk with a South Carolina Tea Party leader, who is hoping for a Romney alternative.
(COMMERCIAL BREAK)
MALVEAUX: You've been sounding off on our "Talk Back" section. We asked: What does the growing class conflict mean for America?
Carol, I imagine a lot of people are weighing in on this. What are they saying?
CAROL COSTELLO, CNN CORRESPONDENT: A lot of people have opinions, Suzanne. The growing conflict means people need to stop talking and start doing.
Adam says, "Highlighting the differences will make it worse. Success should be celebrated. The middle class and lower class want to feel they're achieving as well, which can only happen with a healthier economy. People are focusing on the symptom, not the real problem."
This from Lavon. "Many believe the rich not only have the money but they also have control of the politics of America. I'm not sure if what I think even matters at this point. All the poor can do is try to survive."
From Christopher, "It means we won't get back on our feet. We will only see more biting and scratching. The middle class move down to poor and rich will move down to middle. And we're about to drop the bomb."
Wow. Now, that's a pessimistic view point.
From Michael, "It means that we, the former middle class, are finally fighting back. Class warfare has been going on since the Reagan years. We've been losing without even knowing what is up. Now that more of us in the lower class know what's going on, we can fight back."
Keep the comments going, Facebook com/carolCNN. I'll be back with you in about 15 or 20 minutes.
MALVEAUX: People have very strong opinions about this because this is people's livelihoods. This is what they are up against now.
COSTELLO: Yes, they want to get out of the hole. And, for goodness sakes, they want someone to help them get out.
MALVEAUX: All right. We'll see how we can do that.
Thank you, Carol.
We are following a big international story out of Syria. At least seven people were killed today, some of them children. That is according to a human rights group watching the massive anti-government rallies, and clashes between protesters and riot police. Just look at those pictures.
Our Nic Robertson is in the Syrian capital and he's joining us by phone to talk about what is happening on the ground.
Nic, we are hearing you've got these opposition groups. They're now joining sources with the soldiers who have defected. How is that impacting this movement? Has it become even stronger against the government?
NIC ROBERTSON, CNN CORRESPONDENT (voice-over): The organization -- there are many sort of different opposition groups and there has been -- there is also the Free Syrian army. So what we've seen now, the Syrian National Council, one of the main political opposition groups, joining with the Free Syrian Army. This is very significant because it puts a strong political message along with the military muscle of the opposition right now. And the situation in Syria has led to a standoff with the government, a stalemate where unarmed protests on the street are being put down. The Free Syrian Army, the opposition Army, joining the protesters and giving them support is going to be able to keep them from getting stronger.
MALVEAUX: You know, the president, Assad, made a rare public appearance a few days ago and essentially the whole world is asking him to end this violence and to potentially step down. Has that changed at all, the fact that he came out there and spoke to the people?
ROBERTSON: I don't think it's changed anything other than to make his own supporters feel stronger. It's certainly done nothing for the opposition other than to make them realize that he's not going to back down. I think everyone saw that.
We've been driving around the country for days. There are parts of this country that you go to and go through when you can see there have been battles taking place, big concrete bridges blown up. You see army checkpoints along the wayside. Today, there are so many protests, you see very few people on the street. Even the army is afraid of driving down some of the roads and they have been with the army for some of the day. But the opposition is uniting itself, political and military. It only makes them stronger. If they're divided, they will be weak. And now they are stronger.
MALVEAUX: Nic, it took a really long time to be able to get journalists inside Syria. You and Kalil Abdullah (ph) have been doing an excellent job, but how is it that you're allowed and able to report out of Syria now, to travel and report these stories?
ROBERTSON: We don't have a great deal of freedom of access. The government gets -- it issues permission to film in Damascus and at different locations. What we can do is follow the Arab League monitors when they go out. And that's what we did today. We ended up in the city of Hamad (ph), two and a half hours drive, north of Damascus. This is a city where, 30 years ago, Bashar al-Assad's father, who was president then, put down an Islamist revolt. He put it down by killing 30,000 people. That has become -- the city of Hama has become synonymous worldwide with Syrian oppression, and we certainly saw a lot of forces on the streets.
So, we can follow monitors without government permission, but we're not free to roam exactly where we'd like to go.
MALVEAUX: All right.
Nic Robertson, Khalil Abdullah (ph), please be safe. We appreciate your reporting.
Top of the hour. I'm Suzanne Malveaux.
I want to get you up to speed. The U.S. military is issuing a strong warning to Iran: don't mess with the shipping routes in the Strait of Hormuz. That is the only passage from the Persian Gulf to the open sea. Now, Iranian officials are threatening to close the strait, essentially choking off most of the world's oil supply.
Defense Secretary Leon Panetta told U.S. troops at Fort Bliss yesterday disrupting oil traffic would be crossing what he calls a red line.
(BEGIN VIDEO CLIP)
LEON PANETTA, DEFENSE SECRETARY : We cannot allow them to develop a nuclear weapon. That's a red line.
Number two, we cannot tolerate Iran blocking the Strait of Hormuz. And that's a red line.
(END VIDEO CLIP)
MALVEAUX: Iran blames the United States and Israel for killing a nuclear scientist in Tehran this week. It happened at the time when the West and Japan are all strongly pressuring Iran to end its nuclear program.
Well, police in Thailand arrested this man today. He is a Lebanese terror suspect.
Now, they say he was preparing to attack places that are popular with Western tourists. At the same time, the U.S. and Israel are warning their citizens in Thailand to be especially careful in public places, saying that terrorists are planning attacks in the near future. The U.S. Embassy's advice to Americans in Thailand? Keep a low profile.
These are live pictures that we are watching from Lima, Peru. Joran van der Sloot is learning his face. That's right.
A panel of judges is sentencing the confessed killer of a Peruvian woman right now. No announcement yet. They have been reading charges against him and the evidence in the murder case for more now than an hour or so.
Understand Van der Sloot pleaded guilty to murdering Stephany Flores. That happened back in 2010. You may recall he remains the main suspect in the disappearance of the Alabama teenager Natalee Holloway.
These images sparked international scandal. Now the Marine Corps says they have interviewed two of the four Marines shown urinating on enemy corpses in an online video. So far, the military is not releasing the names, but Defense Secretary Leon Panetta says that the video deeply troubles him. He has ordered a full investigation.
President Obama rolls out his plan to make the federal government leaner and meaner. That's what he's talking about. The president is asking Congress for the power to shrink the government by merging federal agencies. Now, he wants to start by combining several agencies that deal with trade and commerce.
Four convicted murderers left a prison in Mississippi on Sunday and haven't been seen since. Now, they didn't escape. They were set free, pardoned as a final act of outgoing governor Haley Barbour. It happened with no notice and, so far, little explanation.
Mississippi officials are frantically trying to figure out where these men are. Now, the problem is, there may be no grounds to even arrest them. Their records were wiped clean.
On the phone with us now, Oklahoma state senator Harry Coates.
You have moved forward in an effort to make sure that this doesn't happen in your state. What are you doing?
HARRY COATES (R), OKLAHOMA STATE SENATOR: Well, earlier -- or at the end of last year -- I filed a bill that we hope to have heard this next upcoming legislative session, Senate Joint Resolution 46. It would actually take the Oklahoma governor completely out of the pardon and parole process, and it would certainly avoid having a similar situation as what is going on in Mississippi.
But it also would help avoid the bottleneck of pardons and paroles in Oklahoma to deal with our overcrowding in our prison systems. So it would solve a couple of problems.
MALVEAUX: Why do you feel this is necessary? Do you fear that your own governor might make the same kind of choices that Haley Barbour did?
COATES: Well, I don't think that our governor -- we have a great governor, Governor Mary Fallin, in that office. But the issue we have is that the governor's office already appoints a majority of the pardon and parole members, and I just don't feel that the governor should be micromanaging the appointees and should let them do their job. They are well qualified to do it, and I think it would be somewhat arrogant of the governor to come in and second-guess the Pardon and Parole Board.
MALVEAUX: One of the things that pardoning does is it does right the wrongs in the system. Sometimes things don't work out and justice is not actually carried out.
How would you do that in your state if you deny the governor the right to pardon those who perhaps shouldn't have been in jail in the first place?
COATES: Well, that process could be handled by the Pardon and Parole Board. We have five members, three of which are appointed by the governor. One is appointed by the chief justice of the Supreme Court, and the others -- one is a member, the chief justice of the Supreme Court, the other is a presiding judge of the Court of Criminal Appeals.
So you have five members that can review all of paroles and pardons, and if they feel that this individual needs to be pardoned, certainly they can do that. And I just fail to see how the governor would have more information than the Pardon and Parole Board would have.
MALVEAUX: Do you think that this is the kind of thing that other states should do as well, that your state could lead the charge here and become a model, perhaps, for the way other states deal with this?
COATES: Well, I think it's a good idea. And what we're proposing is that the voters in Oklahoma would decide if this is an appropriate process to get the governor out of the pardon and parole business. So what we're suggesting is to put this on as a state question and a ballot initiative to let the voters decide.
MALVEAUX: And finally, real quickly here, if those four convicted murderers from Mississippi show up in your state, will you assist in arresting them and bringing them back?
COATES: Oh, I'm sure law enforcement in Oklahoma would work within the confines of the law. But I think this is -- was a very bad decision on Governor Barbour's -- on his watch. And I would hope that we wouldn't have a similar situation in Oklahoma.
MALVEAUX: All right. Senator Coates, thank you so much. Appreciate it.
Here's a rundown of some of the stories that we are covering this hour.
First, the last of the legacy airlines is filing for bankruptcy. It's another one interested in buying American Airlines.
Then, a Tea Party meeting in advance of the South Carolina primary shaping up as an anybody but Romney affair.
Also, CNN talks with Oprah at her school in South Africa. She says she doesn't need to endorse President Obama again because he has her full support.
(BEGIN VIDEO CLIP)
OPRAH WINFREY, OWN: Everybody always asks, "Are you going to do what you did in 2008?" What I did in 2008 I did because people didn't know really -- my own friends didn't know who he was at the time. They're like, "Who's this guy? You think that guy's going to be president?" I go, "Yeah, I really do."
(END VIDEO CLIP)
MALVEAUX: And he's become the best-known player in the NFL, a lightning rod as well. We're going to dig deeper into the Tim Tebow phenomenon.
(COMMERCIAL BREAK)
MALVEAUX: We're watching live pictures. This is out of Orlando, Florida.
This is where Newt Gingrich is opening up his headquarters in Orlando. He is talking to supporters there and hoping for a big showing. But again, Newt Gingrich setting the state for Florida.
President Obama says he wants to shrink the size of the federal government. Now, just last hour, the president outlined his plan to reduce the government by merging agencies, putting them together. He asked Congress to give him this power to do it.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: So, today, I'm calling on Congress to reinstate the authority that past presidents have had to streamline and reform the executive branch. This is the same sort of authority that every business owner has to make sure that his or her company keeps pace with the times. And let me be clear, I will only use this authority for reforms that result in more efficiency, better service, and a leaner government.
(END VIDEO CLIP)
MALVEAUX: All right. Want to bring in John Avlon, CNN contributor, senior political columnist for "Newsweek" and "The Daily Beast."
John, good to see you here.
JOHN AVLON, CNN CONTRIBUTOR: You too.
MALVEAUX: We know the president made this campaign promise in 2008, and he said he's going to eventually do it, shrink the federal government, combine these six trade and commerce agencies. The last time a president had this kind of authority was under Ronald Reagan, so he says, look, why not bring it back here? The goal -- we want to save some money, some $3 billion in 10 years or so.
Is it really all that important, John, do you think, that Congress does this, that they actually act on this, or is this a political move, political genius to get him to force Congress and the Republicans, specifically, to say yes or no, whether or not they're willing to go along with his plan?
AVLON: Well, sometimes, Suzanne, good policy makes for good politics. And this is one of those cases.
This is a major proposal designed to consolidate six agencies that deal with commerce and trade into one. And the crux of the president's speech wasn't just that we could save money, $3 trillion over 10 years, but it was about outreach to businesses to help get the economy moving again, making the point that we still have 20th century bureaucracies, where, really, there should be 21st century streamlining in place.
And it presents a real challenge to Republicans, because this, at the end of the day, is an idea that does appeal to Republicans. It's straight out of the Republican playbook. So, if Republicans in Congress somehow deny the president this power which Ronald Reagan had before him, it puts them in sort of a difficult position explaining to the moderate majority of Americans why they wouldn't want to shrink government, streamline bureaucracies and do outreach to American businesses.
So, it's good politics and it's good policy.
I want to switch gears here. There's a new super PAC ad. It's supporting Newt Gingrich and it shows Mitt Romney speaking French.
I want you to listen to this. Watch this.
(BEGIN VIDEO CLIP)
NARRATOR (voice-over): Massachusetts moderate Mitt Romney, he'll say anything to win. Anything. And just like John Kerry --
SEN. JOHN KERRY (D), MASSACHUSETTS: Laissez les bon temps roulet.
NARRATOR -- he speaks French, too.
MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: Bonjour. Je m'appelle Mitt Romney.
NARRATOR: But he's still a Massachusetts moderate, and a Massachusetts moderate cannot beat Barack Obama.
(END VIDEO CLIP)
MALVEAUX: What is going on here? Come on, John. Really? Are they trying to show that he's like a foo-foo, shi-shi kind of guy? What is the point of this?
The guy speaks French. So what?
AVLON: It's called getting hit with the French stick.
This is what the Republican Party did to John Kerry in 2004. They never lose an opportunity to call him John "Francois" Kerry to make him seem sort of elite, et cetera. And it's the Newt Gingrich campaign doing the same thing to Mitt Romney this time around.
It's sort of an old political play that they're replaying, but it tends to work, and it's kind of funny as well.
MALVEAUX: It is kind of funny. I don't know.
Super PAC money very well could make this race a lot longer, right, because it's supporting candidates Rick Perry, Newt Gingrich, these guys who wouldn't normally be able to afford to survive, right, through all of these contests? But the super PACs, were they not set up to kind of shore things up pretty much, wrap things up, support the strongest candidate with mega money and get the party behind them faster as opposed to slower?
What is the impact of this?
AVLON: Well, it's huge. I mean, the super PAC wars have begun. This is a major new development in a post-Citizens United world where a billionaire can come and sustain a campaign that otherwise may have imploded from lack of support, lack of attention, or lack of money. And it makes it -- these sort of proxy wars are occurring on air and online over these very expensive, usually negative ads.
And I think the bigger concern, it's sort of a brave new world. But will this end up alienating people as they see more and more negative attacks dominate the airwaves? But it's an important feature of this election cycle in particular. It's something to keep our eye on.
MALVEAUX: All right. John, good to see you. Have a great weekend.
AVLON: You, too.
Here's your chance to "Talk Back" on one of the big stories of the day. What does the growing class conflict mean for America?
Carol Costello, she's joining us from Washington with more.
Hi, Carol.
COSTELLO: Hi, Suzanne.
It is going to be an "us versus them" kind of election, as in rich versus poor. Because who really believes there's much of a middle class anymore? Many Americans don't, and that has created quite a rift between the haves and the have-nots.
According to a new Pew Research poll, in 2011, 66 percent of Americans said there were very strong or strong conflicts between rich and poor. Just two years ago, only 47 percent felt that way. We all know middle class wages have stagnated while the rich have enjoyed bigger paychecks. And if we didn't know, Democrats remind us all the time.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Times are especially tough right now. And they've been tough for a while. For the better part of a decade, we've seen the rich get richer, the poor get poorer, the middle class gets squeezed.
(END VIDEO CLIP)
COSTELLO: Republican Mitt Romney knows the middle class is hurting, but says the president is adding to the rift between rich and poor by promoting the politics of envy. That's exactly what he's doing, although Romney's Republican opponents seem to be adding fuel to Obama's fire by ripping on wealthy big business types. You know, venture capitalists like Mitt Romney.
(BEGIN VIDEO CLIP)
GOV. RICK PERRY (R-TX), PRESIDENTIAL CANDIDATE: They're just vultures. They're vultures that are sitting out there on the tree limb, waiting for the company to get sick. And then they swoop in. They eat the carcass. They leave with that and they leave the skeleton.
(END VIDEO CLIP)
COSTELLO: Rhetoric aside, there's no doubt bitterness between the classes in America exist. The question is, will that really solve our problems or will it make them worse?
So, the "Talk Back" question today: What does growing class conflict mean for America?
Facebook.com/CarolCNN. I'll read your responses later this hour.
MALVEAUX: All right. Thank you, Carol.
Oprah Winfrey, she was one of President Obama's biggest supporters in 2008. Well, CNN caught up with her at her school in South Africa to get her take on the upcoming election.
(BEGIN VIDEO CLIP)
WINFREY: Everybody always asks, "Are you going to do what you did in 2008?" What I did in 2008 I did because people didn't know really -- my own friends didn't know who he was at the time. They're like, "Who's this guy? You think that guy's going to be president?" I go, "Yeah, I really do."
(END VIDEO CLIP)
(COMMERCIAL BREAK)
MALVEAUX: And what is Oprah Winfrey up to these days? One of the world's most recognizable people quietly helping children in need.
Now, the schools she opened in South Africa, it's having its first graduation.
CNN's Robyn Curnow, she got a one-on-one with Oprah about the school, politics back home, and she's actually inside the library of Oprah's school.
So, Robyn, tell us a little bit about what happened. I mean, clearly, she must be pretty proud of her school and these students that she's been supporting.
ROBYN CURNOW, CNN CORRESPONDENT: Absolutely. You know, this library, it's a bit echoey (ph), because nobody else is in here, but it's filled with books, and there are computers on the side. And just imagine 400 girls who Oprah has personally handpicked from some of the poorest homes in South Africa, girls who come from lives blighted by abuse, perhaps violence, many of them are orphaned because of HIV and AIDS. And she's given them -- she built this school, and she's given them a top class, quality education.
And her experiment in a way -- she calls it that -- has worked, because this first graduating class is going -- these girls are about 17. They are going to universities around South Africa. And more importantly, some of them are coming to universities to study in the United States. So, what an amazing thing for these young girls. I spoke to a few of them today. Many of them, like I said, orphaned, who had absolutely no hope, no future, no chance of a good education. And now they are in a library like this and they get to read magazines, choose where they want to go on holiday, classic music.
The kind of opportunity that Oprah has given to these kids is just life-changing, isn't it?
MALVEAUX: It is. And what's interesting, too, is that you got a chance to talk to her about politics.
And I remember back in 2008, I covered her rally that she had, a huge rally that she had supporting Obama. And at the time, everybody was more excited about Oprah than Obama.
She says she's not going to get involved this go-around. Why not?
CURNOW: Absolutely. I mean, I had to ask her, because in a way, she's sort of seen as a bit of a king maker, isn't she? I mean, she really gave Obama a stamp of approval and a lot more people knew who he was.
And I asked her why she isn't do it again, and this is what she told me --
(BEGIN VIDEO CLIP)
WINFREY: I don't need to endorse him because I am a 100 percent supporter of him. And I've already endorsed him and everybody always asks, "Are you going to do what you did in 2008?" What I did in 2008 I did because people didn't know really -- my own friends didn't know who he was at the time. They're like, "Who's this guy? You think that guy's going to be president?"
I go, "Yeah, I really do." So I was happy to step up and do what I felt was a public service because I so believed in him. And I still do.
(END VIDEO CLIP)
CURNOW: She says that if the Obama campaign calls her up and says that they need her help, she will gladly offer her services. But more importantly, I think, she also stressed to me the fact that she's not going so full out and publicly endorsing him again is not a sign that in a way she's disappointed, and I think that's key for her and perhaps also for the Obamas.
MALVEAUX: All right. Thank you, Robyn. Good to see you.
As Mitt Romney solidifies his front-runner status, his rivals now doing all they can to take the wind out of his sails. And attacks already having a big impact in South Carolina.
We're going to take a look at what it means for Romany's chances
(COMMERCIAL BREAK)
MALVEAUX: Mitt Romney on the campaign trail in South Carolina. This hour, Romney is getting ready to rally supporters in Aiken, South Carolina, with just eight days before the state's primary. He's been firing back against attacks on his business record by some of his rivals. Romney says the attacks against his private sector experience are attacks against free market capitalism.
So, what exactly did Romney do at Bain Capital? David Mattingly takes a look back.
(BEGIN VIDEOTAPE)
DAVID MATTINGLY, CNN CORRESPONDENT (voice-over): In the mid-'90s, when Mitt Romney's Bain Capital was investing in steel, Bain bought this plant in Georgetown, South Carolina.
JAMES SANDERSON, PRESIDENT, USW LOCAL 7898: Steelworkers?
MATTINGLY: Steelworkers local president James Sanderson says things did not go well.
(on camera): While Bain is owning the place, do you see them reinvesting in the plant at all?
SANDERSON: No, not at all. Not at all. They were not investing anything at all.
MATTINGLY: Was the equipment wearing down?
SANDERSON: Yes, it was. Very much so.
MATTINGLY (voice-over): Bain's spokesman tells CNN the claims of no investment in the plant are not true.
Sanderson's view is from the downside of Romney's private sector record on job creation.
(on camera): Were you more or less competitive?
SANDERSON: We were less competitive with Bain -- less.
MATTINGLY: Why?
SANDERSON: Because they did not have us in a position where we could compete because our equipment was being neglected. We could not do the stuff that needed to be done and had been doing.
MATTINGLY (voice-over): Touring a motorcycle dealer in South Carolina, Romney points to Bain's national successes, including Sports Authority and Staples, eventually employing thousands in the state.
He also acknowledges the failures.
MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: And there are some businesses that have to be cut back in order to survive and to try to make them stronger. And sometimes you're successful at that and sometimes you're not.
MATTINGLY: In Georgetown, the United Steelworkers Union says 50 were laid off, and Bain sold the plant in bankruptcy after just four years. And it wasn't the first time Bain exited the state quickly. The firm inked a deal in 1987 to bring a photo album manufacturer to Cherokee County, South Carolina.
(on camera): At the time it was a very big deal for this county when Bain decided to expand and bring a company here. This entire area had not been developed, and the county was eager to get this industrial park up and running.
(voice-over): But the company closed just five years later. County officials estimate up to 150 people lost their jobs.
UNIDENTIFIED MALE: What do you say to the people who did lose their jobs in those situations and might view venture capitalism as a job killer instead of a job creator?
ROMNEY: I think any time a job is lost it's a tragedy. For the family, for the individual that loses a job, it's just devastating. And every time that we invested in the business, it was to try and encourage that business to have ongoing life.
MATTINGLY: The departure of Bain's company in Cherokee County was a surprise after the county provided $3.2 million in bonds and a $50,000 sewer line as incentive to build. But 20 years later, county officials look back at the deal as a win-win.
(on camera): Even though you lost 150 jobs when this company left, you still consider it something that helped the county?
JIM COOK, CHEROKEE COUNTY DEVELOPMENT BOARD: In the long run, we came out OK.
MATTINGLY (voice-over): The building Bain built is now of Pen Manufacturer, Bic, employing 80 people.
After changing hands a couple of times at a yearlong shutdown, the steel plant in Georgetown is back up and running with 225 hourly workers and some bitter Bain memories that have not mellowed with time.
(on camera): How much do you hold Mitt Romney responsible for this?
UNIDENTIFIED MALE: Very responsible because he was the leader.
MATTINGLY (voice-over): Decisions and consequences the apparent leader among Republican hopefuls will be explaining in this critical primary state. David Mattingly, CNN, Greer, South Carolina.
(END VIDEO CLIP)
MALVEAUX: Leaders are looking for alternatives to Mitt Romney. They are meeting in Texas starting today and in South Carolina, Tea Party groups are holding a convention to discuss the choices for the Republican nominee.
Joe Dugan, he is chairman of the Myrtle Beach Tea Party and the coordinator of the convention that is happening this weekend. He's joining us live.
First of all, great to see you here. I know, there are going to be a lot of folks and energy and compassion behind your convention this weekend.
And South Carolina has the unique distinction of picking the Republican nominees. So obviously, the role of the Tea Party is very important in all of this. How important is it for you to make sure that that candidate is a social conservative?
JOE DUGAN, MYRTLE BEACH TEA PARTY: It's very important not only a social conservative, but a fiscal conservative. Our country has gone down the path of wire almost at insolvency with a $15 trillion debt. There's no way it can be repaid and we continue to see the Federal Reserve and Ben Bernanke cutting rates to artificially low levels while we borrow billions and billions of dollars from the Chinese.
That has resulted in a 17 percent loss in the value of the dollar since the summer of last year and for a retiree like myself, if I had a thousand dollars in the bank a year and a half ago, I've only got $830 now at purchasing power.
So our whole standard of living across this country for every American is dropping like a rock.
MALVEAUX: So what do you do this weekend here? It seems as if there really is a very close showing here. You've got Mitt Romney at 29 percent. Newt Gingrich at 25 percent, I know Newt Gingrich is your guy.
How did you make sure that it is not Mitt Romney, that the Republicans get behind the person that you want to see who really represents your values?
DUGAN: Well, ultimately it's up to the voters to decide. What we try to do in the Tea Party is to educate the voters as to the positions that the candidates are taking as well as many other issues that largely go unreported in the press in this country.
MALVEAUX: Do you want -- a couple candidates are going to be joining your convention. That is Rick Santorum and Newt Gingrich. What do you need to hear from them to convince your folks that they have at least a fighting chance?
DUGAN: Well, I think they do. South Carolina is a very conservative state and those conservative people are also very independently minded.
They will listen to the candidates and make up their own minds and our job as a Tea Party is to see that they have told both sides of the story, including the truth. MALVEAUX: All right, Joe Dugan, we are going to be checking back in with you on Monday, see how your convention went, what you guys decided, how that all went. Appreciate your time. Have a great weekend.
DUGAN: Great.
MALVEAUX: You don't have to be a football fan to know who Tim Tebow is. He's a superstar athlete. He has wild popularity launching him out of the arena of sports and into pop culture. I'm going to speak to a sports journalist who just had some exclusive Tebow time.
(COMMERCIAL BREAK)
MALVEAUX: The NFL playoffs continue this weekend with eight teams still to advance one step closer to playing in the Super Bowl. Diehard fans probably know the specific match ups, right?
But it does not take a football fanatic to recognize this player, Tim Tebow. Denver Bronco's starting quarterback has gone from NFL benchwarmer to most popular athlete in America at record pace.
He earned the starting job after his team got off to a slow start and then he led the struggling Broncos into the playoffs. Along the way, he stayed humble and true to his Christian beliefs, he quieted some critics, attracting some others.
Even had a phrase named after him, tebowing. Tebow's parents were both missionaries and he's open about his religious beliefs. Not very visible otherwise, but "USA Today's" Jon Saraceno got an exclusive interview with Tebow.
Jon, thanks for joining us. First of all, he's become a huge story in the NFL season, overshadowing other quarterbacks with record setting years. You spent a lot of time with this guy. What is the one new thing that you learned about him?
JON SARACENO, "USA TODAY": Well, Suzanne, a couple of things. America's God fearing clean living quarterback does not have a girlfriend, which I think surprises a lot of people.
He's not Joe Nameth at this point in his career Broadway Joe and another interesting thing about Tim Tebow is he actually has a vice, which may surprise some folks out there. And that vice is -- are you ready?
MALVEAUX: Yes, please.
SARACENO: Vanilla ice cream.
MALVEAUX: That's not a vice.
SARACENO: And when he wants to get really wild, Suzanne, he puts a brownie on it.
MALVEAUX: That's just way too squeaky-clean. So even I know who this guy is. He does the Tebow. He bends the knee, he thanks God there.
There was a survey by ESPN, name the most popular athlete in America, but he does have some folks, some detractors, right, because they are not all buying the squeaky-clean. Here's what Charles Barkley said.
(BEGIN VIDEO CLIP)
CHARLES BARKLEY: The national nightmare continues. Listen, I like Tim Tebow, but there comes a point, make it -- he had a great game. He's supposed to have a great game. They want to make it seem like, the world is aligned correct. You know, he does play quarterback. He's supposed to play well.
(END VIDEO CLIP)
MALVEAUX: All right, so you know Charles. He speaks about a lot of things here. But why do you suppose he attracts some of these criticisms?
SARACENO: Well, as a player he's a very unrefined passer in the NFL. Let's face it. Tim has a way to go to become a polished passer and to become the great player he believes he can become.
Nevertheless, he finds a way to pull out miracle victories late in games. Some people don't believe he's the real thing as a quarterback and of course, there's a religious aspect for some people.
I don't think Tim is polarizing for Christians or Evangelicals. Clearly, he's pulled that group together, but if you're a nonbeliever or a skeptic or you think that athletes is falsefity, then you might wonder, is Tim Tebow the real deal. I believe he is.
MALVEAUX: Is there anything in your time that you spent with him that you questioned whether or not it was completely sincere or you say, you know, his one vice really is the vanilla ice cream with brownies. Is that real?
SARACENO: You know, you never really know with athletes. We've been fooled before by many athletes and it turned out that they have feet of clay and they collapse before America.
You know, we want to believe in heroes. I think people want to believe in spirituality. With Tim Tebow, I think what you see is what you get and until he shows us otherwise, I think he's genuine.
MALVEAUX: All right, Joe, we'll be watching this weekend. Good to see you. Have a good weekend.>
It is a bible verse that a football superstar has brought into the mainstream. We're going to take a look at the new found significance of John 3:16. The intersection of sports and religion that's coming up in the next hour of CNN NEWSROOM.
And she's America's sweetheart when it comes to helping people becoming financially sound. Suzie Orman sounding off about the shrinking middle class up next.
(COMMERCIAL BREAK)
MALVEAUX: Topic of America's shrinking middle class and the gap between the rich and the poor getting more traction from some pretty heavy hitting voices especially after series of new studies that came out this week.
This is what they show. For the first time in 24 years, Americans see the conflict over wealth and equality a bigger conflict than even immigration or race relations.
And a Pew study shows nearly a third of Americans born into the middle class will fall down the economic ladder to low-income by the time that they are adults.
Well, I had a chance to speak with personal finance expert Suze Orman yesterday and last night following that, she made some pretty strong statements about the income gap. Take a listen.
(BEGIN VIDEO CLIP)
SUZE ORMAN, HOST, CNBC'S "SUZE ORMAN SHOW": If you've ever heard me speak, you have heard me say, people, be careful. The rich are getting richer. The poor are getting poorer and sooner than later the middle class will not exist.
The people that call into the "Suze Orman Show" now that's been on the air for 11 years used to be in middle class, I'm here to tell you. They are all now in poverty. The face of poverty has changed. The face of poverty is the person sitting next to you.
It's every single color. And what keeps us in poverty is there is a highway into poverty and there's no longer even a sidewalk out. Even if you do make money, you can't afford to pay things, especially when you see the prices of food out there and what it costs.
(END VIDEO CLIP)
MALVEAUX: The most recent census numbers show that nearly one out of three Americans are now in the low-income category.
Well, it looks like another major airline could change hands. American, now, has filed for bankruptcy. We're going to take a look at who may be interested in taking that over.
Also, household budgets are being strained. College so expensive these days many families need financial aid, but the process, as you know, complicated, confusing. Poppy Harlow, she's getting some answers for you at the CNN "Help Desk."
POPPY HARLOW, CNNMONEY.COM: Time now for "The Help Desk," where we get answers to your financial questions. Joining me this hour, Jack Otter is the executive editor of cbsmoneywatch.com, Donna Rosato is a senior editor at "Money" magazine.
Thank you both for being here. We appreciate it.
Jack, your question comes from Sam in Trenton, New Jersey. Sam says, "my daughter's in college and is fully funded by financial aid. My uncle wants to gift me some stock which is worth about $25,000. Will this affect my daughter's financial aid?"
JACK OTTER, EXECUTIVE EDITOR, CBSMONEYWATCH.COM: Well, for starters, it's possible that even with $25,000 more in assets, he'll still come under that level so she can get her full ride.
HARLOW: OK.
OTTER: It is also possible, however, that it could fall into the formula, which is, the college assesses up to 5.6 percent of your assets and says, you should be able to pay that toward an education. So the worst case scenario here is, they dock him for $1,400.
Now, I might say, you know what, that's OK. Pay that $1,400. You've still got 23 plus. And maybe some other student can benefit. But there are things he could do.
For instance, he can just ask his uncle to wait until she's a senior. That's one step. Another thing is, there's a higher exclusion for retirement accounts. So every working person in his family could put up to $5,000 in an IRA. That would be shielded to a certain extent, depending on how much retirement assets they already have. And so there are various ways they can protect it. But the worst case scenario again, $1,400 of the 25, so I wouldn't sweat it.
HARLOW: Donna, your question comes from Linda in Indianapolis. Linda says, "I'm a student and my husband left his job a year ago to partner in a start-up firm that's doing well. That's great news. I'm aware that it will be more difficult to qualify for financing given our situation. How can we get a mortgage without putting down every last dollar?"
DONNA ROSATO, SENIOR EDITOR, "MONEY": That is really a tough situation. We all know it's harder for anybody to get a mortgage these days, especially if you want to qualify at the lowest rates.
HARLOW: Right.
ROSATO: With one income and an income that is probably unsteady, being a start-up, it's going to be tougher. But it's not impossible. The first thing they want to do is probably consider how much they can put down. There's no particular rule of thumb, but you want to put down a substantial amount. You know, more than 20 percent if possible. So most of the -- a third of home purchases these days are all cash. So that's going to help you a lot.
But if you have a good credit score, if you can show two years of steady income with your IRS tax returns, that's going to help, too. So the bottom line for this couple is, they probably want to wait until the husband has at least two years of a track record showing steady income. Keep their credit scores up and keep saving money and they're going to be in a better position to get a good mortgage. HARLOW: And they don't have to worry about rates going up anytime in the real near term.
ROSATO: That's right. They are expected to stay relatively low for the near future.
HARLOW: All right, thank you, guys, very much.
If you've got a question you want answered, just send us an e-mail any time to cnnhelpdesk@cnn.com
(COMMERCIAL BREAK)
MALVEAUX: Take a look at the stories from across the country.
In Kawanis (ph) County, Wisconsin, a plane landed, or rather crashed, in some trees in the middle of a neighborhood overnight. People watched it fly erratically before this happened and police say the pilot, who had been drinking, walked away with minor injuries.
In Atlanta here there was a huge leak at, of all places, the boat show. Yes, yesterday a large pool holding between 80 and 100,000 gallons of water started gushing onto the floor of the convention floor. What a mess. Organizers had to delay the opening of the boat show for several hours.
And, of course, who hasn't been annoyed by a ringing cell phone in an inappropriate place? How about during a performance of the New York Philharmonic. Ringing came during the worst possible time, a quiet stretch. The beautiful symphony is frustrated. The conductor stops the orchestra until the owner finally silences his phone.
(BEGIN VIDEO CLIP)
ALAN GILBERT, NEW YORK PHILHARMONIC CONDUCTOR: This ring tone was going on and on and on. And it was actually the loudest thing in the hall. There was so much tension and there was such a stunned feeling, I think for everybody in the room, but certainly for the musicians.
(END VIDEO CLIP)
MALVEAUX: Oh, Alison, I could only imagine the mayhem at the symphony there.
OK, so this is what the guy says, Alison. He says that he didn't know it was his phone, right? This thing keeps going and going and going. He says so his company replaces his Blackberry the day before with an iPhone, right, and he says this alarm clock, he turns off the iPhone but this alarm clock is going off and so he's fiddling with it trying to make sure that -- he didn't even realize it was him and then finally the sound stops, the beeping or the alarm or whatever. I don't know. Do you believe that? Do you buy that one?
KOSIK: I do buy it. You know, sometimes you don't realize when you phone is on. But I'll tell you what, that's super embarrassing. And, you know, the people sitting in that Philharmonic, Suzanne, a tough, tough crowd. New Yorkers are tough. I'm surprised they didn't throw him out. I mean especially at the Philharmonic, they're pretty serious about that. I know that for a fact. I've been in that actual hall there at Avery Hall. I know all about it.
MALVEAUX: He was lucky he didn't get beaten down by the audience, huh?
KOSIK: Exactly, yes. I'm telling you, New Yorkers are a tough crowd. I'll just say that.
MALVEAUX: All right. Alison, thanks. I think he learned his lesson there. I -- you know, we've all got to learn our lessons here.
KOSIK: Yep.
MALVEAUX: American Airlines, let's talk a little bit about that. The executives there, they're waiting by the phone, right? There is talk that American may be bought out and some big names already seem to be interested in the last legacy airlines to file for bankruptcy. So, Alison, has anybody actually made a bid for American yet? Do we know?
KOSIK: Suzanne, no bids yet. But, yes, you made a good point. You know, the vultures are certainly circling. They smell blood. And American is clearly in play. So who's looking out to maybe buy American? Delta. U.S. Airways. Some private equity firms. There's some interest there, reports say, that they would be interested in buying American. So the question, of course, is, who would be interested in buying American Airlines knowing that it's going through the whole bankruptcy process?
Well, there are a couple of reasons. For one, American Airlines has 70 members in its frequent flyer club. That is considered an asset. Also, American Airlines has got dibs on some primo gate space. I'm talking about big hubs like in Dallas, in New York City and in L.A., and Chicago.
But anti-trust concerns may keep some of these big deals from going through. Let's say with Delta, because Delta, you remember, it had already merged with Northwest. So adding American would make it the biggest airline. And that could be too big for regulators to like.
But keep in mind, any deal would most likely, even the announcement of any big deal, could be months and months away.
Suzanne.
MALVEAUX: And could they possibly stay independent? Do they have the cash they need?
KOSIK: It is possible. You know, there are a lot of -- there are a lot of airlines that have gone in and out of the bankruptcy process and wound up being pretty successful. But, you know, a lot of changes have to be made for American Airlines. It's got to cut costs. It's got to reorganize. Right now it has huge labor costs which it has to reorganize and it's losing money. So really, I think, what you have to see is American Airlines come up with a better business plan if it wants to remain independent. Suzanne.
MALVEAUX: All right. Alison, thank you. I'm going to -- I guess they'll have their cell phone on. I turned my off now. Thank you. Have a good weekend.
KOSIK: Yes, make sure you watch it.
MALVEAUX: OK. We'll do.
You're sounding off on our "Talk Back" question. What is the growing class conflict mean for America? Brian says, "the rich get richer and the middle class become squeezed into the poor until there is no middle class." More of your responses just moments away.
(COMMERCIAL BREAK)
MALVEAUX: You've been sounding off on our "Talk Back" question, what is the growing class conflict mean for America? Carol Costello, she's joining us live from Washington with some of your responses.
So, hey, Carol, what are folks saying?
COSTELLO: Strong opinions here, Suzanne. Here are some of them.
This from Shawn. "I ultimately believe that this is a slow start to a revolution in America regardless of who wins the presidential election. It doesn't fix the problem. It's only going to further the debate which will hopefully lead to action and real change we can all believe in."
This from Colleen. "It means that the middle class will soon be the lower class. It's a conflict fueled by greed in Congress. I believe a good start is in eliminating bribes, I mean campaign donations to influence votes, is term limits in Congress."
This from Todd. "Remember the French Revolution? The poor rose up against the aristocrats. History always repeats itself."
This from Mike. "It's all just one big distraction. If politicians can keep the public fighting amongst themselves, they can continue to get away with the same financial and political debauchery that originally got us into this mess."
And this from Adam. "Highlighting the differences will make it worse. Success should be celebrated. The middle class and lower class want to feel that they are achieving as well, which can only happen with a healthier economy. People are focusing on the symptom and not the real problem."
Do I have time for one more, Suzanne?
MALVEAUX: You do.
COSTELLO: Oh, it's a short one. I promise. This from Aaron. We got so many today and I was so excited about it. This from Aaron. "He says the up and coming generation of voters is going to want something different. The political scheme is about to undergo a big, big change."
Thanks you for your comments today. It's great to be back. And if you want to continue the conversation, facebook.com/carolcnn.
MALVEAUX: All right, Carol, we have run out of time. We'll see you on Monday.
COSTELLO: I'm sorry.
MALVEAUX: That's all right.
CNN NEWSROOM continuing right now with Don Lemon, hi Don.
DON LEMON, CNN ANCHOR: You're time is up but it's a good thing, it's Friday. You get two days off.
MALVEAUX: Yes, 13, 13 over.
LEMON: Yes, the 13th is over. Hey Suzanne, have a great weekend. Always a pleasure to see you.
