i'm ali velshi. a lot happening overnight. let's get you caught up. the head of the international monetary fund resigned late last night right before his bail hearing in new york. he's facing seven charges of sexual assault. will he walk out of rikers today. a military jet in flames and in pieces. the plane hauling fuel skid off the runway and exploded. i'm kiran chetry. arnold schwarzenegger's other woman. first pictures of his reported mistress released. also maria shriver making a legal move on this "american morning."

good morning. welcome. it's thursday morning, may 19th. we have a lot of news this morning including some breaking news. let's begin with that breaking news. the resignation of dominique strauss-kahn as head of the international monetary fund. this move comes just before a bail hearing today in new york. we're seeing this mug shot for first time. the former imf chief is facing sexual assault charges for allegedly attacking a maid in his manhattan hotel room. he says he is not guilty. resigning from the imf so he can defend himself fully. >> here is part of a statement he released. quote, i think at this time first of my wife, whom i love more than anything, of my children, of my family of my friends. i want to say that i deny with the greatest possible firmness all of the allegations that have been made against me. i want to protect this institution, which i have served with honor and devotion, and especially i want to devote all of my strength, all of my time

and all of my energy to proving my innocence. >> susan candiotti is covering this case for us. a pretty strategic move by the strauss-kahn defense on the eve of his bail hearing. that's going to be today. >> reporter: absolutely. certainly it's no coincidence that he's making this statement today, this resignation, on the eve of when he's going to be asking the judge to let him out of jail. a judge gets to figure it out. are the conditions figured good enough to make sure he shows up in court. dominique strauss-kahn wants out of rikers where he's been two nights under a suicide watch protectively. if he makes his case, no more cot, no more cell, no more guards looking in on him every 15 minutes. he'd get to live in a comfortable home, possibly his daughter's in manhattan. his attorneys are proposing $1 million bail, the same amount they offered monday. he'd be confined to home 24 hours a day, 7 days a week be

under electronic monitoring and sure to be checking in with the court by phone. he's already turned over his passport and would hand in a united nations travel i.d. the internationally known financier is also offering to put up the deed on his $4 million home in washington, d.c.'s tony georgetown. he also has a home in paris. strauss-kahn will also tell the court he'll waive extradition to the u.s. should he flee to france, which has no treaty to force his return to the u.s. the alleged victim's lawyer says the 32-year-old mother because of all of this is scared to death. >> she's very concerned about her security. she's very concerned about what has happened, what this man is capable of and the fact that he would be free. i'm sure it would be something that she'd be very alarmed about. >> strauss-kahn's lawyers have said that he will plead not guilty and told the court they have a defensible case. strauss-kahn's dna and other forensic evidence collected at the scene of the alleged attack

will be considered by a grand jury. the hotel maid, as we know, is also to testify in secret grand jury hearings. >> so you're learning new information now about the cart, the maid's cart and the positioning of that and what was just happening as she was entering the room. what can you tell us? >> per hotel policy, maids are supposed to keep their cleaning cart in the open doorway. a law enforcement source tells us that's what happened in this case. so arguably, the prosecution's case might be helped by that to say, well, let's see, would you have consensual sex, for example, if you had the door wide open? now, the defense could argue it in another fashion, but all of this is yet to be seen. >> susan, thanks very much for that. we'll stay on top of this story. obviously a lot of developments. >> yeah, i mean, he probably didn't have much of a choice, he had to resign from the imf. >> sure. >> even if he's proven innocent, this is a fight he has to tackle for months to come.

>> and the imf since the financial crisis has been remarkably busy. >> when the treasury secretary of the united states comes out and says at the harvard club a few nights ago he has to step down, that's a sign that you won't be effective with the imf when fighting charges like this. the national transportation safety board investigating the crash of a military plane in southern california. the tanker jet crashed last night on takeoff at the point mugu air station. the boeing 707 burst into flames at the end of the runway. three crew members on board managed to escape with minor injuries. officials say the plane was being operated by a navy contractor omega air refueling which provides fleet operations on the point mugu sea test range. al qaeda out today with a new audio message said to be recorded by bin laden before his death. the 12-minute tape was posted by raddic am islamic websites. it calls him the martyr of

islam. the message refers to the revolutions in tunisia and urges muslims to rise up against corrupt rulers and western influence. also today growing concern at the pentagon that releasing too much information about the raid that killed bin laden could compromise future missions. >> we have, from my perspective, gotten to a point where we are close to jeopardizing this precious capability that we have, and we can't afford to do that. this fight isn't over. >> just yesterday cia director leon panetta sent out a memo reminding agency employees of the importance of protecting classified information. coming up at 6:30, national security analyst peter bergen will stop by to talk to us more about this message believed to be from bin laden and about al qaeda's new leadership and new leader there. >> it will be interesting stuff. peter's been at the forefront of

the new information coming out. so it will be examine to talkgo him about it. president obama will be outlining new goals for the middle east in a speech. it will include an economic boost for egypt and tunisia. >> we can expect strong language from him aimed at syria with sanctions for the brutal crackdown on its protesters which we've been following for weeks here. >> let's bring in ed henry live at the white house. why now, and what's the goal of this speech? because it's a complicated narrative why we react in one country one way and in a different country a different way. >> it is. and it's a lot to tackle. they say he wants to tie together the arab spring, all these peaceful protests, the situation in libya, the death of osama bin laden. i mean, that alone is a lot to chew on. you throw in the mideast peace process which has been intractable for so many years and this is very, very

ambitious, obviously. two years after that speech the president gave to the muslim world in cairo, egypt. this is now a chance to check in again. and aides say that it is a chance to take a breath, a few months after the arab spring began, and kind of reassess where we are and lay out for the world, not just the muslim world, but the entire world what exactly the u.s. can do specifically to try and help some of these fledgling democracies as they make these transitions, specifically what the president's going to lay out is about $2 billion in u.s. aid to egypt and tunisia to try and get at the root of where all this started which we can't forget about which is the fact that there are a lot of young people in the arab world who are not just interested in human rights but also economic power, and the fact that so many of them coming out of college without jobs. and so the u.s. wants to try and help egypt, tunisia and let them be models for the rest of the region as they try to grow here.

but it's interesting when you look back that speech to the muslim world two years ago, the president didn't mention tunisia, didn't mention libya, didn't mention syria. obviously a lot of big countries in that region but gives you a sense of how in two years so much has changed. this is a chance for the president of the united states to maybe take stock, guys. >> thanks, ed. a lot clearly for the president to illustrate for the american people. cnn will carry the president's speech live at 11:30 a.m. eastern. after nearly a decade of controversy over this drug, the fda is taking steps to curb the use of the diabetes medication avandia because of its risks of heart attack. beginning in november avandia will be available only by mail order at select pharmacies and patients must be informed of its risk. studies have found that the drug increases the chance of heart attack or stroke. some are asking why is it still even allowed to be prescribed

but there are others who have tried to make the case that for some patients avandia is the most effective at controlling diabetes. speaking of medicine, doctors say congresswoman gabrielle giffords is recovering well. this is another milestone after her surgery. she underwent a procedure to repair part of her skull after being shot in the head as you remember back in january her surgeons are expected to speak later this morning to discuss what is next. she was at the shuttle launch on monday to watch her husband, right there, mark kelly, take that space shuttle "endeavour's" last mission into space. controversial documents about the accused tucson shooter jared loughner are set to be released. the arizona republic is reporting that a judge has ruled that the college that he attended has to turn over 250 e-mails written by him in the months before his suspension. citing a privacy law. six people were killed in the shooting in january. more than a dozen others were wounded. in virginia tech we saw something similar, didn't we,

kiran, where we were trying to find out if there was any kind of sign that the shooter in that case -- >> right. >> had run afoul of mental health officials or school hierarchy. >> and he was in and out of the mental health system. and he had written poems that scared his classmate who had gone to talk to them. but there's that minority report aspect, even if you think somebody is troubled and they haven't committed a crime -- >> has not allowed them -- >> and the privacy trumps everything. that's something they've claimed as well. the mississippi river cresting a day earlier than expected at over 57 feet. that's 14 feet above flood stage. and an all-time record. hundreds of homes are now under water. highways are impassable. right now thousands of homes are flooded and millions of acres of farmland in mississippi, tennessee, arkansas are submerged. home video of a tornado that touched down. this is in hagerstown, maryland. the national weather service confirms it was on the ground

for just over two miles. it tore up roofs, knocked over trees but amazingly no one was hurt. after capturing the prestigious players championship this weekend, pga tour star k.j. choi is donating $200,000 of his winnings to victims in the southeast. he took home $1.7 million for his playoff victory on sunday. he said he wanted those who are suffering right now to know they are not being ignored. >> he's known for this, for giving a portion of his winnings to local churches, to charities, to causes that move him. >> i mean, that's really cool and generous. cut these out of your everyday life and you'll be a little richer. pretty helpful article up on the new cnn money.com. first atm fees. using the closest one instead of your actual bank which is down the block. you got to walk an extra block or mile for the free atm machine. lotto tickets. the old saying the house always

wins. last year people bought more than $70 billion worth of lottery tickets. wow, 70 billion. only 38 billion was paid out. >> but if you win, you really win. >> and number three, fancy gourmet coffee. the sludge from the office machine is probably going to work just fine. >> it depends on the sludge. but if you don't use the atms that charge you, then you can use that money for coffee. >> there you go. i agree. >> or an occasional lotto ticket. >> and while i certainly never think buying lotto tickets is an excellent choice, in these tough times it does fund a lot of state operations. >> people do it -- >> pays for schools. >> in georgia it's their scholarship system. ah, but bottom line take stock of what wrur spending. >> this is our question of the day. what do you waste your money on and why? even if you know you shouldn't do it, why can't we kick this habit? e-mail us, tweet us or go to our blog. we'll read your comments later this hour. >> sounds good. new details about the other

woman that broke up arnold schwarzenegger and maria shriver. new pictures the and a new legal move by maria. ♪ [ male announcer ] in 2011, at&t is at work, building up our wireless network all across america. we're adding new cell sites... increasing network capacity, and investing billions of dollars to improve your wireless network experience. from a single phone call to the most advanced data download, we're covering more people in more places than ever before in an effort to give you the best network possible. at&t. rethink possible. you're gonna want mr. fuzzyman even more now that we've discovered beneful playful life. with real, wholesome ingredients like beef, egg, and even oatmeal. extra protein for strong muscles. so you're ready for anything. you think you're getting spoiled. but it's so good for you, too. [ female announcer ] beneful playful life.

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we're going to get our first look at arnold schwarzenegger's other woman. "the new york times" is reporting that her name is mildred patricia baena, a former housekeeper for the schwarzenegger family. these are pictures from her myspace page. she's reportedly the mother of schwarzenegger's secret child. >> we're also getting our first glimpse of schwarzenegger since this scandal broke. in his black bentley and driving up to a wall of paparazzi. thelma gutierrez is live outside the mistress' home in bakersfield, california, with new details this morning. hi, thelma. >> reporter: hi there, kiran. mildred patricia baena who is 50 and a native of guatemala lives here in this brand new subdivision in bakersfield, california. this is a hundred miles away

from the brentwood mansion where she worked for the schwarzeneggers. she recently retired after 20 years of service as a housekeeper for the schwarzeneggers and moved here with her 14-year-old son. his birth certificate was recently obtained by cnn shows that the boy was born just days after maria shriver gave birth to her youngest son. and the man who's listed on the birth certificate as the father is the man that baena was married to at the time. but divorce records obtained by cnn show that the couple separated just weeks after the boy's birth. now, we had mentioned that the couple -- that the family resettled here in bakersfield. here's what neighbors had to say. >> they seemed to be very pleasant neighbors. and the boy, he is -- he seems very well liked. he's very, very polite.

very polite. he also has a little dog he plays with a lot and he rides his bike. not a whole lot, but you know once in a while i see him. but not a whole lot. >> reporter: now, as for the boy's father arnold schwarzenegger, he has kept a very low profile. a source told us a couple of days ago that he is contrite, that he apologized to his children before this information went public. "people" magazine reporting that maria shriver has hired a divorce attorney. do we know any more about the timeline for when their marriage could be officially dissolved? >> reporter: no, we don't know exactly when that will happen. but the attorney is a high powered attorney in hollywood, kiran. she's laura wasser. again, "people" magazine reported that maria shriver had hired her. now she's represented other women, high profile women like robin gibson who is mel gibson's wife. also angelina jolie and at one

time brittany spears. one of the questions we get a lot in these tough times for people of the age that they're ready to retire, should they retire now or do they continue working because of the tough economic times? we'll talk about that when we come back. you don't have to worry about retirement if the end of the world comes first. some say saturday is d-day. jeanne moos takes a look at what could be the end of the world, or not. [ woman ] can't anything help these itchy allergy eyes?

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welcome back. 24 minutes past the hour right now. thousands of new jersey state workers are getting out i guess you could say while the going's still good. >> they're worried about the future of the state and their pension. they feel they may lose their pensions because of looming state budget cuts. they're running out of time and options. is early retirement what you should do -- early retirement applications are pouring in in new jersey. >> there's certainly a lot of question about this. cnn's looking into this. a very common question. should i take my pension while there is a state pension and a budget or wait? >> there's a lot of fear out there and there's a lot of misconception. this is a problem that resonates with all of us in the workforce. will there be enough money out there when it comes to retiring?

that's a question faced by people right now. some government worker feel they're being forced to make some unwanted decisions. >> it scares me. it scares me. i don't know how much money i'm going to get, how long i'm going to get it, but i want to get some of it while it's in there. >> debra jacobs has worked at the new jersey department of motor vehicles for 34 years. in june she's retiring one year ahead of schedule at the age of 54. >> i've really been forced to make a decision. i would stay a little longer, but with the rules they're trying to make, with the laws they're trying to pass, it's scaring me that i may have to be here till i'm like 60. >> jacobses is one of thousands of state employees heading for the exits in many states facing a crisis. in new jersey, it surged 60% in 2010 and are on the rise again this year. in california 30,000 state employees retired in 2010. and in wisconsin, where protests

against government benefit cuts made national headlines in february, retirement applications have nearly doubled in just the first four months of this year. economics professor theresa gilarducci says many want out before their pension goes bust. >> it is important for states and localities that have an expensive pension bill right now to reassure employees that they'll get all their pensions. >> there's no sense for anybody to race to leave. if you're vested and in new jersey it's five years, they can't make those changes to you legally. state senate president stephen sweeney is working against the clock to get a road map to save new jersey's pension fund. >> i'm actually working with the governor on a plan that's going to create a more private sector management type of pension system that i think will be something that could go nationally. >> while he works on it, retirement applications keep rolling in.

ghilarducci says the quality of services will suffer. >> the best employees head for the door, especially those really valuable, because they can get jobs someplace else. >> that's what debra jacobs is doing. >> 34 years doing this job, this is a career for me. it's been a family for me. but now i have to leave it. >> most states have to rein in costs. we've been hearing about this for a long time. in new york, the governor andrew cuomo is looking at targeting future workers by saying, listening, the younger workers will have to retire later, maybe age 65. no early retirement options. they'll have to contribute twice as much as workers do now. so at some point states have to make concessions. it's a question of who they're going to make it with. >> what about if you're in the private sector, if you're a taxpayer and you work in the private sector, how does this affect you? >> when government workers leave a job, they're not going to be replaced. so that means services to you

get affected. take a look at police, firefighters, teachers, those jobs are not necessarily being replaced. debra jacobs, her job won't be replaced. state jobs in new jersey have gone down 10%. you'll get affected in terms of services. everything gets stretched. >> felicia taylor, come back soon. great piece, thanks. what do you waste your money on and why? because especially if you're a young worker and you think that you'll have to tighten your own belt, you'll have to work longer, you know, you can e-mail us, tweet us, go to our blog, find us on facebook. we'll read your comments. [ male announcer ] in 2011, at&t is at work, building up our wireless network all across america. we're adding new cell sites... increasing network capacity, and investing billions of dollars to improve your wireless network experience. from a single phone call to the most advanced data download, we're covering more people in more places than ever before

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your trip begins at michigan.org. ♪ ♪ ♪ ♪ ♪ ♪ ♪ time for our top stories now. the head of the international monetary fund resigned last night right before his bail hearing today. dominique strauss-kahn is

accused of raping a hotel maid in new york city. in his statement he said he needed to devote all of his energy to proving his innocence. thick black smoke pouring out of a military plane in california. the boeing 707 crashed at the point mugu naval station. burst into flames at the end of the runway. three crew escaped with just minor injuries. new pictures out this morning of arnold schwarzenegger's reported mistress. the woman, the mother of his child that was kept secret for more than a decade, and "the new york times" is reporting that her name is mildred patricia baena. "people" magazine is reporting that maria shriver has hired a well known high profile divorce attorney. it might be osama bin laden's last message. an audio recording released by al qaeda and posted on radical islamic websites. >> praise for the uprisings in tunisia and talking about winds of change in the muslim world. >> this is interesting. peter bergen joins us.

they have this 12-minute audio tape. welcome, by the way. he talks about the arab spring. says he's joining in the victories. this is interesting because a lot of people said this would run counter to what al qaeda would want. they wouldn't want to see democracies in the arab world. >> right. certainly their analysis the only way to bring change in the arab world was vines. much of what happened in egypt wasn't violent. and they want to install theocracies. no one in the street of cairo or benghazi is asking for the taliban to come into pow are. this is the first time that we've had bin laden comment on this. usually he'd comment on any big news in the muslim world within three weeks. now this is posthumous. >> maybe it was a struggle trying to figure out what their message would be. many said that the arab spring did leave them behind. >> cognitive dissonance. this was what they wanted but had nothing to do with their ideas and the outcomes would not

be to their satisfaction. >> talk about the interim leader, the caretaker leader, what is the story. >> the story is from people close to al qaeda that there's a problem there's a success problem. they haven't appointed a formal successor. and this is becoming a problem within the jihadi community. they've appointed saif al adel, a former egyptian special forces officer. he's been involved in anti-american activities since somalia in 1993. he's been a part of al qaeda's inner circle. >> he's egyptian, right? >> he's an egyptian with a sort of -- he was a colonel in the egyptian special forces. not insignificant military performance. >> will saudi be able to line up behind an egyptian. >> osama bin laden grew up in saudi arabia. that's the holly land. for people from al qaeda they want someone from the arabian peninsula. this might be an effort to grease the skids for ayman al

zawahiri to take over. >> this is also interesting because there's more information comes out about exactly how the u.s. military took down bin laden. we've been hearing more and more details. we're now hearing from defense chief ront gates who says that he's worried about all of these leaks about the raid and about the killing are actually jeopardizing our ability to do this again for the people that are still out there on the most wanted list. >> well, yeah, we live in an open society and it was a huge victory of both military and the cia and a political victory. so i think while that may be true, it's going to be very hard to put a lid on all this. we know a lot about what happened now. and i mean, i think that was a specific reaction to a story in "the washington post" yesterday about a very, very specific drone that was used in this. so did the operational details about that drone i think was what gates was reacting to. >> not so much, you're saying, the details of how that operation happened in the compound? >> i think this drone -- yeah, operating at a pretty classified

level and the "post" had a pretty detailed account of how it operates. i think that's what was getting people's attention. >> good to see you this morning. peter bergen, krrn's national security analyst. >> thanks for being here. the parishioner at the holy jesus church made the request. as you might imagine not everyone in the congregation supports the idea. hoers say they'll pray for the u.s. servicemen sent overseas because of bin laden. united airlines is apologizing for reusing the flight numbers for two planes that were used in the 9/11 attacks. united flights 93 and 175 were both retired after 9/11 but a computer glitch caused former continental flight to be reassigned with those numbers. a united spokesperson said we should have caught the mistake sooner than we did. 93 and 175 will remain off the books for good. united and they merged.

if you're a person who uses your android phone at starbucks or any other location at open wifi, there's a warning that you might want to hear. scientists say they found a major security flaw that affects all android phones. gives hackers easy access to your calendars, photos, contacts, all of this happening over the unsecured wireless network that you're using. google says it is aware of the problem and a fix is already in place for the calendar and contacts applications in the latest versions. what about the pictures? what about those pictures? >> that's why there's pictures of me all over the place. rob marciano is down in louisiana talking about the oyster harvest and what the state of that harvest is. with everything they've gone through down there. and he's going to tell us if they're safe to eat. save the date. this saturday could be tend of the world. it is also jeanne moos' birthday. so she's celebrating early, just

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40 minutes past the hour right now. the mississippi river crested a day earlier than expected at vicksburg. it is at all all-time record high of 57 feet high. that's 14 feet above flood stage. hundreds of homes are under water there, highways and road res main impassable. take a look at this home. this is the home of governor haley barbour. flood waters have reached the second floor. barbour said that he tried to sandbag. everybody tried to do the best that they can, but he said he

knew it was likely to go under. >> all that sandbagging, then all that work. thousands of homes are flooded. 3 million acres of farm land are under water in the south. that's the damage we can see in shots like that. >> that's right. because in louisiana beneath the surface of the swollen mississippi sensitive oyster beds are being threatened by the on rush of water. >> they have to keep a certain salinity, a certain type of silt in there. and it is very difficult when you talk about this type of flooding. one oysterman says it is like mother nature is waterboarding us. pretty strong language. rob marciano is in port allen this morning. we were down there last year, it was the oil spill they were concerned about, the oyster harvest. they can't get a break. >> no, a double whammy. but for the same reason. let's remember that the majority of the oysters struggled last year from the oil spill because we were releasing water from the mississippi and other rivers to kind of try to flush and push the oil out of the marshes, and

that added fresh water to those areas. and as you mentioned, the salinity factor, that's the key to whether oysters survive and thrive or die off. there was a 50% reduction in the crop this year because of the fresh water pouring into the marsh last year. we went out there with oyster farmers to take a look at their crop and, quite honestly, do some product testing. with the fresh water coming down this year with this flood, it looks like it will be the second year in a row where they'll be struggling. >> being out on the water, there's a lot of unexpecteds. and it's very, very similar to harvesting any crop. on the land or out on the water. >> reporter: but it's been a lot of back-to-backs, katrina, gustav, oil spill, now this flood. >> ike. missed that one. >> reporter: how do you survive this one? it's been tough for you guys. >> you know what? there's a little bit of pirate in each one of us. and i think you just kind of --

you just figure your way through it. >> they're figuring their way through it. again, they might take a 50% reduction next year. so not good news for those folks as the water flows down the atchafalaya. i want to talk briefly about what's going on here in baton rouge. the river crested yesterday. but it will remain around 45 feet for the next several days. that's affecting people here. because they opened the spillway up stream and diverted that water, baton rouge was saved but it is tough for commercial shipping traffic. a half mile to my south there's a huge lock here in port allen, which is on the other side of the river from baton rouge. they've shut that lock down to commercial shipping. that is key, guys, because it eliminates a shortcut. there's a 120-mile shortcut that ships take to the gulf of mexico

that now has been closed. and that is costing commerce about a million dollars a day every day that that lock is closed to commercial shipping. so across the board, this flood is affecting just about every facet of the eight or nine states that it's been affecting here for over a month. >> rob marciano, thanks very much. have a good morning. 44 minute past the hour. let's get a check of the weather headlines. any relief in sight? i mean, we're talking about this, been talking about this flooding, but it's been a mess in other parts of the country as well. >> especially in the northeast and new england. these are record-setting rainfall totals. these aren't just your basic one-day totals you see ordinarily. we saw more than a couple of inches fall around new york city in central park. over the last two to four days we've seen just about thatch in the way of rainfall totals. this was stuck in the mid-atlantic, this area of low pressure, but now it starts to move a little bit. as it does, sweeps on off the

coast but not for long. in new york city and boston and philadelphia, philadelphia, by the way, yesterday afternoon a very weak tornado, a little bit of damage reported there, but no reports of any injuries. so you get a little bit of a break but not much before this weather system moves on this. and you pick up another round of wet weather. today we're watch fog aing for risk of severe weather. could see large sized hail, gusty winds and maybe some isolated tornadoes. our other big story is the spring snowstorm across the rockies. that's going to get things a little interesting there. higher peaks could see as much as 18 inches of snowfall. big delays over the last several days at major airports across that northeastern corridor, i-95. for metro city areas looks like you could see some low visibility. might see around round of delays later in the morning. back to you in new york.

>> we'll check in with you. boy, this rain -- >> we're all talking about it, too. we're in new jersey, i'm in west chester. >> wet and bubbly inside the house. >> they're not even in the basement. >> they're not even in the basement. something is coming through the shingles. we had to tape cups to our windows to catch raindrops. maybe it is the end of the world. >> i'm in manhattan. it's fine here. we're going to come back in a minute. but there's another problem with the sony playstation network. it is not a hack, thankfully, but a password issue. we'll tell you about it. >> because you're a big gamer. >> i use the playstation network to watch movies. i have nothing against gamers. you draw me into this fight. you call me a gamer, then i say i'm not a gamer and then the gamers tweet me, what do you have against gamers? >> gamers are nice people, too. >> more on that coming up. car connection calls the xf, yet an instant classic."

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[ technician ] are you busy? management just sent over these new technical manuals. they need you to translate them into portuguese. by tomorrow. [ male announcer ] ducati knows it's better for xerox to manage their global publications. so they can focus on building amazing bikes. with xerox, you're ready for real business. a lot's going on this morning. here's what you need to know to start your day. the embattled head of the international monetary fund has resigned. dominique strauss-kahn is accused of trying to rape a maid at a new york hotel last saturday. he could get out on bail later today. a son fathered by arnold schwarzenegger with his housekeeper was born less than a week after his wife maria shriver gave birth to another schwarzenegger son. the housekeeper mildred baena

separated from her then-husband less than three weeks after her son's birth. a bridge over i-40 outside albuquerque collapsed yesterday. a construction worker was hurt but not seriously. crews were trying to disimagine the bridge at the time. sony had to take part of its playstation network off line again to fix a possible security problem. it affected users trying to log in via the web. lady gaga tops this year's "forbes" magazine list of the world's most pow areful celebrities. she earned 90 million. oprah winfrey tropped to number two. teen sensation justin bieber is in the third spot. our question of the day. what do you waste your money on and why? e-mail us, tweet us or go to our blog or find us on facebook.

we've all got them, bad money habits. christine will say we've got more than others. >> you're surrounded by frugality. >> i am. but we all buy things that we don't really need and it adds up. >> it does. cnnmoney.com has joined us with the top ten ways that we're wasting money. atm fees. >> guilty. >> coffee. >> not guilty. >> losing lottery tickets. >> as opposed to winning lottery tickets. a great investment. what do you waste your money on and why? we got funny responses. first one comes from robert via facebook. he says i waste my money and i

guess waste you're using loosely here, on food, medicine and gasoline because i don't have enough to left on anything frivolous. >> that's clever. >> j.k. rodgers clothes off ebay. i love getting a good deal on something. that's flash sales sites. people spend money on those things that they otherwise wouldn't buy. >> there is no money left in the budget to waste on these things if you're living on a fixed income or unemployed. >> i love the other one written in here. it says booze. he goes booze because i'm an american. >> keep your comments coming. send us an e-mail or tweet. we'll read your thoughts later in the show. save the date. may 21, 2011. that's a saturday, by the way. >> is this about the world coming to an end? >> according to some. >> people have left their jobs, left their families, are traveling the country to tell all of us the rapture is about to happen. >> a bad bet.

in the short time that jeanne moos has left she spoke to some of the true believers. >> reporter: i hate to be judgmental -- this saturday the end of the world is almost here. it doesn't improve the daily commute. here's what's supposed to happen around 6:00 p.m. eastern time saturday. >> the largest earthquake the world has ever seen is going to be banks, buildings will collapse. it will be quite awful. >> reporter: like the disaster movie "2012" arriving early. earthquakes worldwide, believers will experience rapture, heavenly ascent while nonbelievers stay for a few hellish months until the fiery end of time. >> 97% of the people god will destroy. >> i don't believe in such [ bleep ]. >> reporter: the generally low key and polite folks who believe this need tough skin. they hand out their leaflets. >> yeah, right!

>> it's all over. >> reporter: you're convinced, you're absolutely convinced. >> yes, because the bible guarantees it. >> reporter: the bible as interpreted by this california preacher harold camping, head of family radio. lately he's been getting some flack. >> and buddy, you are one of the worst. >> reporter: he miscalculated his last end times prediction for 1994. what happens if on sunday we're all still here and there's no earthquake and -- >> well, there will be an earthquake. >> reporter: this retired new york city transit engineer spent $140,000 in subway and bus shelter ads warning of judgment day. that's your life savings? >> a good chunk of it. >> reporter: on saturday, where will robert fitzpatrick be? >> as of now i'm planning to be in times square. >> reporter: with media tagging along expecting to see him with egg on his face or in rapture. and if those in heaven need

someone to take care of the pets they leave behind. you can arrange with services like after the rapture pet care and eternal earthbound pets to have non-christians take care of your animals. one nonbeliever wants to celebrate we're still here day on the 22nd. for some of us, the 21st is problematic. but this is my birthday. putting this on me is just weird. so if my birthday is on the 21st, what do you recommend i do? >> pray. >> reporter: and maybe celebrate rly. ♪ happy dooms day dear jeanne ♪ happy doomsday to you >> reporter: jeanne moos, cnn, new york. in a hard hat! >> i would be worried that i would be wrong and i'd spend all this money and have this night of debauchery and it would be sunday and the world's still here. >> you know, after y2k and

everything turned out fine, i stopped getting nervous about it. >> i hear you. >> maybe it's a bad bet. we'll never know. coming up, new details on the arnold schwarzenegger situation that we've been following. "time" magazine has got some interesting questions they're posing. i'm sure you're posing those questions. why do powerful men act like pigs? the executive editor is here to talk about it. making child meds easier to understand. it could matter the next time your kid wakes up with a fever. how we're dosing our children. what do you got? restrained driver...

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breaking news. stepping down, but will he be stepping out? the emf chief resigns an hour before a bail hearing in new york city. and crash and burn. a military jet hauling fuel breaks into pieces in california. all that on this "american morning." good morning to you. thanksing so much for being with us on this "american morning." it is thursday, may 19th.

a lot going on today. >> let's begin with breaking news, the late night resignation of dominique strauss-kahn. the move effective immediately comes hours before a bail hearing set for later today here in new york. >> we're seeing his mug shot for the first time this morning. the former imf chief is accused of the attempted rape of a maid in his manhattan hotel room. he says he's not guilty. >> here is part of the statement he released. quote, i think at this time first of my wife, whom i love more than anything, of my children, of my family of my friends. i want to say that i deny with the greatest possible firmness all of the allegations that have been made against me. i want to protect this institution which i have served with honor and devotion and especially, especially i want to devote all of my strength, all of my time and all of my energy to proorving my innocence. >> susan candiotti is tracking the developments this the case. >> the question is will the district attorney agree to these

terms? ultimately it's up to the judge to decide. right now the d.a. says no comment about the particulars of this bail offer, which we now have. a judge will figure it all out. are the conditions good enough to make sure that strauss-kahn shows up in court? he wants out of rikers where he's been two nights under a suicide watch that's been set protectively. if he makes his case, no more cot, no more cell, no more guards looking in on him every 15 minutes or so. he would get to live in a comfortable home, possibly his daughter's in manhattan. here's the deal his attorneys are proposing. $1 million in bail. that's the same amount he offered in monday's court appearance. it was rejected by a different judge. he'd be confined to home 24 hours a day, 7 days a week, be under electronic monitoring probably an ankle bracelet, and have to call in every day. he's already turned over his passport and would have to hand in an international i.d.

he would have to put up the deed on his $4 million home in washington, d.c.'s tony georgetown. he also has a home in pairs ipa. the alleged victim's lawyer says the 32-year-old mother is scared to death at the thought of him possibly making bail. >> she's very concerned about her security. she's very concerned about what has happened, what this man is capable of and the fact that he would be free i'm sure would be something that would -- she would be very alarmed about. >> strauss-kahn's lawyers say he'll plead not guilty and told the court they have a defensible case. strauss-kahn's dna and other forensic evidence collected at the scene of the alleged sex attack in the hotel suite will be considered by a grand jury and the hotel maid is also to testify in these secret hearings. also new information coming out of law enforcement that

could help the prosecution. this involves the positioning of the door and her cart when she was in that room. >> that's right. a law enforcement source tells us that the door to the hotel suite was propped open with the maid's cleaning cart. this is required by hotel policy and, in fact, evidently the law enforcement sources that did take place. so the prosecution could argue really would an attack have taken place -- would consensual sex have taken place if the door was propped open? now, part of the charge indicates that strauss-kahn allegedly shut the door in the middle of this attack as she was -- she said she was trying to run away from him and get away from him. >> the interesting thing is that they have that electronic key. so that door, it can hold some evidence as to when it was open, when it was shut. >> unless there was somebody leaving the room. there's other -- we're trying to find out if there are other people coming and going out of that room as well. if the door was already open, if she propped it open with her

card, all that needs to be determined. >> that's correct. still gathering all that evidence. also this morning military jet crashes and burns in southern california. it happened late last night at the point mugu air base in ventura county. the jet crashed on takeoff sliding off the runway and erupting into flames. three crew members on board the 747 aircraft escaped with minor injuries. it belonged to omega air refueling which is a navy contractor. it is said to be carrying 150,000 pounds of jet fuel. in just a few hours president obama will deliver what's being described as a major speech on the middle east. the president will outline new goals for the region and he's expected to defend new sanctions against syria after the violent crackdown on anti-government protesters. also said to be in the speech, unveiling of the $2 billion aid package for egypt as well as the announcement of a new trade partnership with the region and a fund for helping to stimulate

investment. cnn will carry the president's speech live. it's happening at 11:30 eastern time. more than two weeks after he was killed by a team of navy s.e.a.l.s we're hearing what al qaeda claims to be the voice of osama bin laden. the 12-minute-long message contains what would be his public reaction to the recent uprisings in part of the arab world. stan grant is live in islamabad, pakistan, with more on this. until now we have not heard bin laden's response to what was happening throughout the middle east in the spring because many analysts said that al qaeda was searching for a message because the arab spring had passed it by. >> yeah, precisely. you know, this was always the aim of al qaeda, to attack the far enemy, that is the united states, to bring down the near enemy, which he saw as some of the arab regimes that he was really butting against. of course, events had overtaken him. because we had seen students and other protesters take to the

streets and make a real difference in countries like tunisia and egypt. but this statement recorded about a week before his death he directly addresses that uprising callingate great and historic uprising. he calls it a revolution there that was fated by god. he only mentions tunisia and egypt, actually, by name, but he's calling for more arab leaders actually to be toppled. now, as you say, this is an attempt to try to get some relevance, to try to get some traction with those events in the middle east. he certainly didn't have to search for relevance here in pakistan. because two weeks after his death we have a statement from the taliban, the second in charge of the taliban here saying that they are vowing to continue bin laden's work to finish his work. he says that the u.s., nato and, quote, the jews, are their enemy and they're going to step up their attacks. we have seen more attacks over the past week. dozens of military have been killed. a lot of insurgents killed as

well in suicide attacks and other attacks throughout pakistan. the thing to remember here as well is that pakistanis are caught in the crossfire. the taliban here may have other enemies but the pakistanis are the ones dying in these attacks. >> stan grant, thanks, stan. new news about the scandal that has torn apart california's first family. this is our first glimpse of arnold schwarzenegger since the news came out about his affair with another woman. the scandal is the peg for "time" magazine's cover story. >> take a look at it. "sex. lies. arrogance. what makes powerful men act like pigs." the asterisk next to the little pigs, it says no offense. no offense to the pigs because pigs are innocent and cute as opposed to the people profiled in this story.

we now know who is other woman is. "the new york times" is reporting she is mildred patricia baena. they gasped when shown the pictures. >> the gasp is that -- >> this is not the first time i've heard it, you know. and people go, oh, my god. >> don't you remember years ago when clinton was doing his thing with monica lewinsky, we had the same response. well, people did. she was overweight. what does he see in her? how come he would take a chance with a girl -- >> if she'd been a drop dead gorgeous beauty, then we'd be like, oh wee hate her, but at least she looks good. >> interesting discussion. this woman has found herself in the middle of a lot of publicity right now. thelma gutierrez live outside mildred baena's home in bakersfield, california. good morning, thelma. >> reporter: good morning, ali. i can tell you that bakersfield is about a hundred miles away from brentwood, ali.

and that's where mildred baena actually worked for the schwarzeneggers for 20 years. we know that she moved here. she just recently retired. moved here with her 14-year-old son. she's 50 years old, a native of guatemala. moved here. neighbors say that this is a very nice family so far. here's what they had to say about his son. >> they seem to be very pleasant neighbors, and the boy, he's very well liked. he seems very, very polite. very polite. he also has a little dog he plays with a lot and he rides his bike. not a whole lot, but you know once in a while i see him. but not a whole lot. >> reporter: now, cnn obtained the child's birth certificate and what we have learned is that this boy was born just days after maria shriver gave birth to her youngest son. we've also obtained the divorce

documents, baena's divorce documents and we learned that the couple separated just three weeks after she gave birth. >> do we know anything more about the timing of this coming out, why all of this emerged right now? there seems to be some conflicting reports on that. >> reporter: it's all very curious because she had worked for the family for 20 years. lots of unanswered questions as to how this kept quiet for so much time. after all, this was the governor of california, a very high profile family. yet this family maintained this secret for so long, then all of a sudden, you know, becomes this explosion of information. and so that is a question that's yet to be answered. but what we do know is that maria shriver has retained a very high profile hollywood attorney. her name is laura wasser. "people" magazine has reported that laura wasser is now going to be representing maria

shriver. this is a person who is known in her office by the acronym of l.a.w., which stands for laura allison wasser. a person who is very well known. she's represented angelina jolie, britney spears and mel gibson's wife robin gibson. >> thank you very much. thelma gutierrez outside this woman's house in bakersfield, california. let's check in right now with karen maginnis. >> we're looking at some video coming out of hagerstown, maryland. this is just to the northwest. logginsville. this is home video very spectacular. i'll say there are no injuries reported from this tornado that touched down on tuesday night. it was rated as an ef-1 which means the top winds were about 100 miles an hour. there were uprooted trees, overturned power lines and damaged homes. and they're saying that this was on the ground for about two

miles and was about 200 yards wide. what can we expect for today in the northeast? well, those delays are starting again. we saw over the last several days just crazy delays in to the northeastern corridor. boston, philadelphia, dulles yesterday had lengthy delays upwards of just about two hours. right now philadelphia ground delays being reported there. i think these will get extended out as we head out into the morning. back to you guys in new york. >> thank you very much. we'll be coming back in a few minutes. a lot of news stories that we're covering. >> this one is interesting. a record number of people are borrowing from their 401(k)s just to make it through. a new senate bill would prevent people from using their 401(k)s as a piggy bank. an important move on this. the fda wants to change the dosing information and instructions trying to make things clearer when you're giving your kids medicine like

advil or acetaminophen, which is tylenol. we'll talk more about that. a human smuggling operation has been busted using x-ray machines at the mexican border. those are people. >> that's unbelievable. ♪ [ male announcer ] in 2011, at&t is at work, building up our wireless network all across america. we're adding new cell sites... increasing network capacity, and investing billions of dollars to improve your wireless network experience. from a single phone call to the most advanced data download, we're covering more people in more places than ever before in an effort to give you the best network possible. at&t. rethink possible. in an effort to give you the best network possible. ♪ ♪

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welcome back to "american morning." a shocking case of human smuggling, mexican authorities sent 400 hub migrants back to guatemala yesterday. they were discovered backed into two tractor trailers. some are still being held until their countries are notified. mexico has a very strict policies about returning people immediately back to their countries of origin. the operation busted by checkpoint x-ray machines. the migrants paid $7,000 each -- >> those are the x-ray machines. >> so what they're saying -- can you imagine -- they apparently

had these rudimentary straps and people were having to ride standing, squatting so they could all fit in there on these extremely rugged roads. >> new legislation aimed at your 401(k). lawmakers are looking to limit you from tapping into retirement funds saying that many people are using their 401(k) as a piggy bank and they cannot repay those loans. they're coming up with new rules. you can't take out more than three loans at one time. the rollover period for repayment after leavinging a job is going to be extended. and finally, you can continue to make elective contributions during the six months after you have taken a hardship withdraw. >> we know a lot of people have been doing that, taking money out of their 401(k)s but it does rob your retirement later on. >> an absolute last resort. >> this is not the smartest argument. but there are some people who say i'm loathe to do this because my money is tied up. i put money in there. but if i need it, i can't take it out.

>> when people don't have to -- it used to be pensions. you didn't have any choice over the money. it is a fact that if you are left to save for your own retirement, you don't do it. then the money runs out at the end. better for it to run out when you're 50 than when you're 80. >> taking it out of your 401(k) is a sign of economic desperation. you shouldn't do it for any other reason. >> than you can't survive. >> after capturing the prestigious players championship, k.j. choi is now donating $200,000 of his winnings to tornado victims in the southeast. the south korean star took home $1.7 million from his playoff victory sunday. he said he wanted those who are suffering right now to know that they're not being ignored. also mortgage. your mortgage application. if you looked at your mortgage paperwork or mortgage application, very, very difficult. we'll show you the new rules. >> this is unbelievable. the biggest single advance of

the last decade if this happens. >> too bad this didn't take effect -- >> you'll all understand your mortgages. lady gaga. i told my wife a year ago it would be a flash in the pan. >> your wife or lady gaga. >> no, lady gaga. my wife is timeless and will be with me for eternity. lady gaga she's teaming up with starbucks -- also not a flash in the pan. we'll talk about what they're doing. >> also eternity made him saturday for ali vel much shy.

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a watchdog group taking steps to make it easier to comparison shop for a mortgage. the bureau unveiling designs for a new simple mortgage disclosure form that will help borrowers compare loan terms. a mortgage form you can actually read. and starbucks teaming up with lady gaga, now the world's most powerful celebrity according to "forbes." she'll be the face of the coffee chain's scavenger hunt promotion. ♪ [ male announcer ] in 2011, at&t is at work, building up our wireless network all across america. we're adding new cell sites... increasing network capacity, and investing billions of dollars to improve your wireless network experience. from a single phone call to the most advanced data download, we're covering more people in more places than ever before in an effort to give you the best network possible. at&t. rethink possible.

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under water this morning. the roads are still impassable except by boat. our martin savidge found one vicksburg resident who knew trouble was coming and literally rose above it. >> they come in and they did it in a day's work. >> reporter: what day was that? >> mother's day. >> reporter: so you raised the house on mother's day? >> yes, sir. >> reporter: it is probably a good day to do it. >> oh, yeah, it was. >> reporter: considering now the fact that this house is one of the few that's still dry in the neighborhood. >> yes. >> reporter: mom got a pretty good present. >> oh, yeah, she loves it. best mother's day present ever. >> there you go, so a little planning for the worst and it turned out well for that family at least. that man's home doesn't have a single drop of water in it. the plumbing and electricity also still working. right now thousands of homes are flooded, though, and 3 million acres of farmland

damaged. that's what we can see. >> in louisiana beneath the surface of the water sensitive oyster beds are threatened. one oysterman says it is like mother nature is waterboarding us. what's the issue with oysters, rob? >> fresh water. and you know, just hard to believe that a flood that originated a thousand miles away is impacting an area really that's been in a drought. hurricanes, last year's oil spill and now this. oystermen certainly feel like they're going to take it on the chin again. >> we're going to pull some oysters up right off the reef. here we go. >> reporter: greg's family has been farming oysters here for more than a hundred years. >> this is basically where the fresh and the saltwater meet. >> reporter: perfect for oysters, but get too much fresh water like during a historic flood and the oysters die. >> being out on the water, there's a lot of unexpecteds.

and it's very, very similar to harvesting any crop, out on the -- in the land or out on the water so -- >> but a lot of back-to-back, katrina, gustav, oil spill. >> ike. missed that one. >> how do you survive this one? it's been tough for you guys. >> you know what? there's a little bit of pirate in each one of those. i think we just kind of -- you just figure your way through it. >> tie up to a working boat to check on his crop. >> come on up, rob dog. >> once everything's on the table these guys go to town and they start working the oysters. >> they're going to town all right. look at this harvest so far and we're not even mid-morning. what kind of take do we have on a day like this? >> probably end up with about 50 sacks which is about 5,000 pounds. >> these break apart. >> time to sample the product. >> stick your lips on the meat and slurp. and get all the yummy goodness.

>> mm, wow. somebody shut the floodgates! save the oysters! freshwater does not affect the taste, which keeps him motivated to get through what will be another tough year. >> you still have that flavor in your mouth of that oyster and you can taste it. and that's what keeps me going in this business is wa we just did. >> that's the tastiest lunch i've had in a while, i can tell you that. the river at 45 feet here, baton rouge and port allen, the lock has been closed for two days creating a shortcut between here and the gulf of mexico every day. every day that's closed to commercial shipping it costs commerce about a million dollars. they estimate that the oyster crop next year will be down about 100 million pounds because

fresh water -- too much fresh water like taking too much aspirin to thin your blood, eventually it will kill you. it does not affect the taste of the oysters and those oysters are definitely safe to eat. but it limits the numbers that they can harvest. and that will happen for the second year in a row. >> rob, thanks for that. let me bring you up to speed with some of our top stories. the head of the international monetary fund resigned last night right before his bail hearing which is happening today. dominique strauss-kahn accused of sexually assaulting a hotel maid in new york city. he said he needed to devote all of his energy to proving his innocence. president obama will give a major address on the future of u.s. policy in the middle east and the recent uprisings in the arab world. he's expected to defend new sanctions against syria for its violent crackdown on anti-government protesters. our next guest is an expert on the middle east.

daniel kertzer, back from a trip to egypt. mr. ambassador, great to have you with us. >> hi, good morning, kiran. >> it does have a little bit of a challenge, the president, especially when it comes to articulating the u.s. view on the arab spring. what are you looking to hear in his speech this morning? >> well, he's got to hit three home runs today. number one, the region is waiting to hear his views about what the u.s. will do both in terms of political support and, more importantly, in terms of financial support to try to bolster the democratic revolutions in egypt and tunisia. second, the region's going to want to hear why it is that we've got a nato-led bombing campaign in libya, but only unilateral sanctions so far in syria. what's the difference between these situations? and third, there's a great interest in what the president will say about the middle east peace process. the president met this week with king abdullah of jordan.

we'll meet tomorrow with prime minister netanyahu of israel. and there's an expectation that he's going to say something that spurs these negotiations to resume. >> so let's take piece by piece some of what you talked about first when it comes to support of the arab spring. he is expected to announce a $2 billion multiyear economic aid pack ang for egypt. also some aid for tunisia as well. at the same time are we comfortable with delivering that money if, let's say, the muslim brotherhood gets majority in parliament. how do we deal with democracies that we may not necessarily like? >> well, i think that's the challenge for the president. my guess is that he will lay out a policy approach that says that we're looking for free, fair and democratic elections within a system in which basic rights are protected. if that's the case, i think we would accept the elections even if it includes the election of some muslim brothers to parliament. the united states, i think, hopes that other parties emerge

so that the brotherhood does not become a majority, but i don't thing the president will hold our aid contingent upon the brotherhood being kept out of the political scene. >> you also had a changing landscape that the middle east peace negotiations appear to hit a road block. you have the resignation of george mitchell who was supposed to be helping this as the special envoy helping this along. how much does that hurt? >> i think it was a setback for the president who has devoted considerable time and attention during the past two years to try to get these parties back to the negotiating table. and the resignation of his chief negotiator sent a signal that perhaps we had reached the end of the line. and that's why the speech today has got to set a new course. the president is likely to lay out some ideas for bringing the two sides back to the table although i doubt that he'll lay out a full pln or full set of parameters. we'll try to find some comfort zone between that. >> the other question he's expected to talk today about the killing of bin laden, but how

does it change things especially in afghanistan? we've seen a growing chorus, the calls getting louder and louder for us to bring the troops home, u.s. troops in afghanistan, faster than planned. what does he say about that? >> he needs to explain to the american people why it is that we need to be there for a while and maintain the timetable. there will be political pressures back here to accelerate that timetable. but the president will want to make sure that we don't leave behind a situation that may require us to go back in at some point. a delicate balance that he's got to achieve in dealing with the aftermath of bin laden's death. >> certainly a lot of challenges as you laid out. we'll carry it live. ambassador daniel kurtzer. thank you for joining us live this morning. coming up, you've been talking about this. "time" magazine asks why

powerful men act like pigs. one of the questions we're asking is it about power, about access, is it about just men? the executive editor of "time" is here to talk about it. stop buying that fancy cough in the morning. the question of the day, what do you waste money on and why? basic coffee is fine. car connection calls the xf,

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welcome back to the most news in the morning. the sex scandal everyone is talking about today. arnold schwarzenegger's other woman, his housekeeper and their

secret son. >> the most recent example of powerful men behaving badly. our corporate cousin "time" magazine, "sex. lies. arrogance. what makes powerful men act like pigs." joining us is nancy gibbs. two major high profile incidents across the country this week. but very, very different incidents. in new york dominique strauss-kahn, head of the imf accused of attempted rape. in california, arnold schwarzenegger, the disclosure that he fathered a child with a woman not his wife. two different cases. how did you come around to deciding that this was the topic everybody is talking about and you can do more on it? >> i think it's important that we make the distinction. only one of these men is currently sitting in a jail cell. what strauss-kahn is accused of is a violent climrime. what they have in common is an abuse of power. in strauss-kahn's case an

extreme and violent abuse of power in attacking a chambermaid. but in arnold's case apartment from this being a tragedy for his family this was an employee of his that was economically dependent on him. this is a theme that's disturbing in many of these cases that have run through our political debate for years. >> former president clinton as well, it was an intern that had people sort of wondering about that unequality when it comes to stature. you cite a study that says a higher a man rose in business hierarchy, the more likely they were to consider or commit adultery. it is aw stounding. >> it is true of men and women. >> we don't hear these cases about women. we struggle to find cases like this about women. >> partly this is -- partly this is just the numbers. there are many fewer women in the highest levels either in politic or in private industry. so you tend to have many more men who have the opportunity. what social scientists say is with opportunity comes

inclination to act on it. that the muscles of monogamy that ordinary men develop of self-denial and self-restraint weaken when sex is constantly available to you. >> i want to make an important point about the difference between those two cases as well. arnold schwarzenegger admitted this and dominique strauss-kahn says he didn't do it. he is still innocent until proven guilty. but as a case studied for this subject, it shows you that there's a different way that they think than the rest of us. is it partially because you have to be a risk taker to get to these elevated levels. because this is a very big risk. you say why would somebody so smart do something so stupid? >> a willingen to take risk is part of what often account for success. but also with success comes a kind of confidence and with that confidence comes a sense of sens sexual entitlement. >> you said all men were pigs.

>> we didn't say all men. >> right. you said what makes powerful men act like pigs. there are a lot of guys who say, i take offense to that. i do the right thing. look at our current president, look at our prior president, regardless of what you think about them politically, these were people that were the most, perhaps, powerful men in the world and there's never been a whiff of anything having to do with infidelity. >> these men are just as appalled at the misconduct of other men as women are. i don't think that women are any more sort of righteous about it. >> you tackled something right at the top. you said one of the things that motivated you was this sense of power, inequality of the position of the women. haven't we worked for decades to eliminate the idea that people can only partner and meet with people in their own socioeconomic condition. >> absolutely. but when you have the case of someone like john ensign where he had an affair where the woman

worked for him but her husband was his chief of staff. people should be able to consensually relate to anyone else. the problem is does it compromise have very idea of consent if one person works for another, a professor with a student. >> that's why we have rules about this. >> the other fascinating thing is they're not running to divorce themselves from their current situation in the case of arnold schwarzenegger and maria shriver, a power couple where she had as much pow are and prestige as he did. he wasn't trying to get out of to to be with the maid. it's a side thing, not what they're choosing as their life. >> one of the things about that case that bothers people is that at a crucial moment in his political career when more than a dozen women had come forward to accuse him of being an aggressive, harassing character, that she was the one who came forward as a character witness and maria shriver has a strong reputation as a feminist.

and she testified to his good conduct. and that was very persuasive to people. >> nancy, good to see you. a great issue. nancy gibbs, executive editor at "time" magazine. >> and no offense to the pigs. no pigs were harmed in the writing -- >> or the good guys. cheap things you don't really need and boy do they add up. >> how much do you spend on things like atm fees or your coffee or mocha latte extra hot. anyway, our question of the day this morning. what do you waste your money on and why? we asked our people and they wrote to us. coffee and cocktails gets me every time. >> coffee is a big one on the list. >> you need cocktails after too much coffee and coffee after too much cocktails. >> i waste money on groupons. i know i'm saving money, but am i? >> i have three in my wallet. they're a good deal if you use them. video games. but is it really wasted?

gives me countless hours of entertainment. that's a good point. michelle writes my husband was wasting 15 to $20 a week on atms. every time i go to any store that allows me to get cash back when i pay, i get an extra 20 to $50 in cash. i hoard it at home when he needs to grab it. one of the most wasteful, movie snacks, overpriced popcorn, candy and sodas, what a waste. going out to eat lunch every day. thousands wasted. sarah says on itunes. a lot of people say this. it's so easy to just click and let it pile up. >> exactly. >> keep them coming. send us an e-mail and tweet. we'll read more of your thoughts. [ male announcer ] u pushed your onstar button yet? time is running out to be one of the 10 people to win the chevrolet, buick, gmc or cadillac of your choice. just push your blue button and tell the advisor you want to enter to win a car.

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a lot going on this morning. here's what you need to know to start your day. the head of the international monetary fund resips. dominique strauss-kahn accused of assaulting a new york city maid last weekend. a bail hearing set for later today. an investigation under way into the firer crash of a military jet in california. the boeing 707 exploded into flames at . the san francisco giants were in town for the first time since the vicious attack on a fan, brian stow, on opening day. a security warning for android users. a flaw in the smart phone allows hackers to access your calendars, photos and contacts through wi-fi networks. durham the wacky hat from the royal wedding princess beatrice wore. the hat being auctioned on ebay has reached $30,000.

tiger woods losing his spot among the top ten golfers in the world. the title he has held for 13 years. forbes says he is still the number one sports celebrity. you are caught up on today's headlines. american morning is back in 60 seconds.

the fda is pulling the controversial diabetes drug, avandia because of heart attack risks. beginning in november, it will only be available by mail order at select pharmacies and patients must be informed of the

risks. the drug increases the chance of heart attack or stroke by 40%. there is nothing more important than your kids' health. sometimes people say it feels like a guessing game. two panels want some dosing information for toddlers and babies to be easier to understand. >> our senior medical correspondent, elizabeth cohen joins us from atlanta. why is the fda so concerned about something like children's tylenol? >> i bet you ladies have probably been in this situation. it is 3:00 in the morning, your 1-year-old has a fever and you go and reach for the bottle of tylenol and you go like this and you go, okay, under two years of anyone, dosage, ask a doctor. ask a doctor. it is 3:00 in the morning. it is so incredibly unhelpful and pediatricians and parents have been complaining for years. >> what are they going to do about it? are they actually going to tell you what you should do?

>> yes. they are going to tell you what dosage you should give your child. this is so simple. you would think they should have done this years ago. this advisory committee is saying that the fda should put a real dosage there. it is hard to be an empowered patient at 3:00 in the morning. >> for kiran and i. is it the age or the weight of a child? this is something you go through all the time with this medicine. >> right exactly. that's a really smart question. it is much more the weight. the weight is what you want to pay attention to. you can have a huge 3-year-old who is more like a 5-year-old or a little 3-year-old who is more like a 2-year-old. the weight is important. >> how much of an issue is this, elizabeth if you got it kind of wrong? >> it is a big issue. if you are wrong by a little bit, that's not a gigantic issue. if you are wrong by quite a bit shall that's a problem. this can be toxic to the liver. it can cause real problems and sadly, some parents have overdosed their children. this is a real problem. >> acetaminophen, they are

talking about this because of the concern with the liver. there was talk. i remember you covering this, about cold medicine and overdosing on cold medicine along those lines. i find it interesting, why do they make the dosing charts they are clear. the numbers are clear and the dosing chart is clear. >> you can't read t. >> you are sitting there trying to figure out, is this one teaspoon, is it not? it could be easier. >> it could be easier. that's one of the things they are talking about. sometimes the instructions will be in mill litres. the dosing comes in teaspoons, which doesn't make any sense. or it will say give your child 2.5 mill i litres but there is no marking. they need to get themselves together and do a better job with the markings. >> my pediatrician gives you a cup and writes the line where you are supposed to fill and the other kids name on it so you can't screw it up.

>> at 3:00 in the morning, i would never be able to find those two cups anyway. >> it is hard. it could be so much easier. you are right. we seal what the fda comes up with. >> your top stories are minutes away. we are going on the job hunt putting america back to work. we are going to try and figure out how to make that work when we come back. 56 minutes after the hour. are right underneath our feet, and all we need to do is change the way we're thinking about them. a couple decades ago, we didn't even realize just how much natural gas was trapped in rocks thousands of feet below us. technology has made it possible to safely unlock this cleanly burning natural gas. this deposits can provide us with fuel for a hundred years, providing energy security and economic growth all across this country. it just takes somebody having the idea, and that's where the discovery comes from. britta olsen is my patient. i spend long hours with her checking her heart rate, administering her medication, and just making her comfortable. one night britta told me about a tradition in denmark,

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>> i'm christine romans. the head of the international monetary fund stepped down last night before his bail hearing in new york. we will speak to the alleged victim's attorney. i'm kiran chetry. pretty amazing pictures of a crash at a california naval base. it was a military jet, slid off the runway and burst into flames. it was hauls 150,000 pounds of jet fuel. i'm ali velshi. the woman that broke up arnold schwarzenegger's marriage revealed. you are looking at the first pictures of the mother of his secret child. there are reports that maria shriver has made her first legal move on this american morning. good morning, everybody. it is thursday, may 19th. welcome to the coach, velshi. >> you made it. you got your work-out in. >> first, the jailed head of the imf resigning. this news coming just hours before he plans to ask a judge to be released on bail.

this is the first look at dominique strauss-kahn's mug shot, still in a prison cell at reicher's island right now. >> he said he stepped down so he can focus on grooming his innocence. he says he is not guilty. >> susan candiotti is covering this case. no coincidence he stepped down right before he is being asked to be freed on bail. >> that's a good argument for him to be made with the court. i don't have to worry about that. that's part of how serious i am in getting involve in manhattan.

here is the bail deal he is proposal, a $1 million bail, the same amount he offered at monday's court appearance rejected by a different judge. confined to home 24 hours a day under electronic monitoring, probably an ankle bracelet and he is likely to regularly check in by phone with the court. he has already turned over his passport and would hand in a united nations travel i.d., put up the deed to his $4 million home in georgetown in washington, d.c. and he and his wife have a home in paris. strauss-kahn will tell the court he will wave extra dix to the united states if he flees to france or any other country that doesn't have an extradition treaty to the u.s. the possibility of bail doesn't sit well with the hotel maid. >> he sh is very concerned about her security and what has happened and what this man is capable of and the fact that he would be free would be something

that she would be very alarmed about. >> strauss-kahn's lawyer says he will plead not guilty and told the court they have a defensible case. they may claim any sex was defensible. his dna and other forensic evidence collected at the scene and any testimony by the alleged victim will be considered by a grand jury. so whether or not he makes bail, he will be back in court tomorrow. that's when we will find out whether the grand jury is indicting him on these charges. >> we are getting little bits and pieces of information all over the place. one of these issues with respect to his side possibly claiming that it was consensual sex with the made is complicated by this whole idea of the hotels policy about how maids, what has to happen when they are cleaning a room. >> the policy is, you have to have the door open at all times, that the cleaning cart props open the doors in that door hallway. so the argument could be, would

someone be involved in consensual sex if you had the door wide open? we will have to see what the defense is going to be. >> so the issue is, is this he said, she said or is there for ensick evidence? >> there will be a lot of forensic evidence involved obviously. to a large degree, in the end, he said, she said and credibility of the testimony of everyone. >> that will be interesting, because there are other people coming forward alleging attacks or incidents and questioning whether they are going to put forth charges. >> thank you so much. we are going to talk to jeff shapiro in ten minutes. he is representing the alleged victim. he has said that she never knew him, never saw him before this happened. we are going to ask him how she is holding up and how she plans

to prove her claims that strauss-kahn sexually assaulted her. >> this morning, a team of ntsb investigators pouring over the remains of a military tanker jet that crashed and burned in southern california. it crashed on takeoff sliding off the runway and erupting. officials say the jet had 150,000 pounds of jet fuel on it. more than two weeks after his death, we are hearing what al qaeda is claiming to be the voice of osama bin laden. they call him the martyr of islam and praises revolutions in tunisia and egypt and encourages muslims to rise up against corrupt rulers. there is growing concern in washington that too much information has been leaked to the media. lee on pan net that sent a memory reminding agency employees to protect classified

information. he warned that the disclosure of intelligence secrets will be prosecuted by the justice department. he expressed that leaks at worst endanger lives. >> and they could also compromise future military missions and the lives of u.s. troops. that's from the pentagon. here is the what chairman of the joint chiefs of staff had to say about it. >> we have gotten to a point where we are close to jeopardizing this precious capability that we have and we can't afford to do that. this fight isn't over. first of all. secondly, when you now extend that to concern with individuals in the military and their families, from my perspective, it is time to stop talking. we have talked far too much

about this. we need to move on. >> it is interesting, because mullens said government officials were not the only ones to blame. he mentioned retired military officers as well. earlier, we talked to peter bergen, our terrorist expert who says it is an open society. >> he said he thinks this is about the drones, the flights that were taking place. it was very specific. that would be somebody who is currently in the military would have to know about, you would think. that was a little bit disturbing. united airlines says it was a mistake and it won't happen again. they blame a computer glitch for the brief return of flights number 93 and 175. this he ring a bell, because those were the flights that went down in the 911 attacks. a united airlines' person said it shouldn't have happened. we should have caught it sooner than we did. a court ruling could give us

an inside look into the accused mass shooter in tucson. they ordered pima county community college to hand over 250 e-mails written about jared loughner. the school initially said it breached a privacy law. six people were killed in that january shooting. more than a dozen others injured, including arizona congresswoman gabrielle giffords. we have good news for congresswoman giffords. her latest surgery was a success. in a tv interview a short time ago, her husband and "endeavour" commander, mark kelly, says she is recuperating and getting back to therapy today. those are his words. she underwent an operation to repair her skull after suffering from the gun shot wound in january. her surgeons are expected to speak later to discuss what is next in her recovery. >> that interview coming from space. we are learning about the developments of gabrielle giffords from space. >> from space. >> modern technology is an amazing thing. terrifying moments for people living in hagerstown,

harold. it touched down yesterday. the national weather service is confirming that it was on the ground for a two-mile tearing up roots and knocking over trees. no one was hurt. speaking of mother nature, a record ha stood for over 80 years has been broken in vicksburg, mississippi. virtually ever home under water. it is cresting at 57.1 feet. the highest level on record. a full 14 feet above flood stage. >> i have a record that's going down. >> what? >> gas prices. >> two cents. >> two cents but a little bit of a trend down. >> don't spend it all in one place. >> aaa reports the national price is now $3.90. two cents less than yesterday. the seventh straight day that the price comes together. >> when you add that all together, about eight cents down from a week ago. >> it has pulled back again. business booming to are a

gas station owner in columbia south carolina who just renamed his station after president obama. the owner spent $4,000 to change the name and look of the gas station. it sparked a competition with the station across the street. when we last checked obama's price for gas was $3.59 for regular. >> see what the one across the street is. >> i don't understand what's good. the guy, the owner of the station said, he did it because he likes obama if you like me, never name a gas station after me. with rising prices, i can't imagine that is fun for the white house. >> he can always say, you can blame obama for gas prices. cut these out of your everyday life and you will be a little bit richer. a pretty helpful articles. the top ten ways you are just wasting your money. >> atm fees. >> guilty. >> you do not do that. >> it is just throwing money

away. might as well burn it. >> one consumer analyst sis some people could save up to $500 a year if they used their own atm machines. >> and this one is lotto tickets. >> you are buying something. you are buying hope. >> you may spend a jackpot over the course of a lifetime trying to win big, anywhere from 500 to $1,000 a year for some people. >> number three on the list, fancy gourmet coffee. the sludge from the machine will probably work just as well. we have a lot of people that are writing in to us saying, it is my guilty pleasure. >> i completely disagree on that. if it makes you better at work or better as a mom or a husband, part of your whole routine and it makes you more efficient, it is fine, a good expense. if you can afford it. >> i have to say, i do my mcdonald's ice coffee, only $2.14. i used to do the carmel maciado. it was $6.50.

i got the largest one. >> we want to know what your guilty pleasure is, what ywaste your money on and why. give us a tweet or tell us on facebook.com. >> i love the hand signals from the crew. they are going cigarettes, cigarettes. >> the other ones are going alcohol. >> that's true. obviously, lawmakers. >> that's why they tax them. up next, jeffrey shapiro, the private attorney for the new york hotel maid accusing imf chief dominique strauss-kahn of attempted rape. we are going to ask him how she is doing and ask him to tell us more about her and what's next in her case. >> if you have an android phone and you like to use public wi i wi-fi. >> there are a whole bunch of people that think the world is coming to an end on saturday. we have not been relieved from

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later today, the former head of the international monetary fund is going to be in a court asking a judge to free him on bail. >> he is charged with sexually assaulting a maid. he says he is not guilty. he resigned his post yesterday saying he is going to devote all of his time to defending himself. >> attorney jeffrey shapiro is defending strauss-kahn's victim. thank you for joining us. prosecutors in the special victim's up it is taking care of the criminal part. tell us what your role is in the grand jury process. >> my role, i do not play a role in the grand jury process. the presentation of this case to a grand jury and the accumulation of evidence for the criminal prosecution is solely within the new york city police

department and district attorney's office. my role here is to counsel her and to be with her to explain what's going on, to try to help her get through this personally, on a personal level, and try to help her at some point get her life back on track. >> when you say a personal level, you are not somebody who has a personal relationship with her? >> no, not at all. >> that means i will launch a civil suit. >> there has been no discussion about civil litigation. that is not something on her mind or something we have discussed. my role is as an attorney who helps victims of negligence or a rape victim is to try to help her through. >> how do you get paid? >> i am not being paid. >> this is a pro bono work you are doing for her? >> absolutely. >> i want to ask about her state of mind, because she had to testify in front of the grand jury. that's an ongoing situation. she may be called back. they have to present this case out there by friday. what has it been like for her to

have to relive what she claims happened to her and also how is she doing? >> i don't know that it is possible for her to express what this is like. i think that if you have had any experience with someone who has been traumatized by sexual assault, reliving it in your mind is hard enough. having to recount it, even to a therapist, is difficult, much less having to talk about it on the record in front of a grand jury. it is extraordinarily difficult. nonetheless, she is making it through this. >> does she feel that her lawyers supported her when she -- and police supported her when she first reported this attack? >> yes. by the way, this is someone who was very grateful to have this job. she had worked in this hotel for approximately three years. she was treated well by her superiors and colleagues. they supported her, because she was a good employee and they continue to support her, by the way. so this was a job that she

depended upon and also a job she was very grateful for. >> you say she is back with her daughter, her 15-year-old daughter. >> they are together, yes. >> can you tell us a little bit about what the next steps are for her? obviously, she is not going to be going to work. she is in a process where she will be in the legal system for god knows how long. >> terms of her being in the legal system, the role of a witness or for this matter a victim initially is to present whatever evidence is asked from them for a grand jury. from that point forward, she is not so much in the legal system as a potential witness should this come to trial. >> what's lapping with the discussions of these other women, one in particular who had interviewed him some years ago that are coming out of the woodwork and saying that they have seen this type of behavior before? does that fit into this prosecution in the system she is in at the moment? >> i think the answer from that question will come from the strength of and the credibility of the people that are making the accusations.

ultimately, in any trial, whether somebody could take the witness stand and testify about prior acts really depends on whether the judge let's it into evidence. >> i think it is interesting, the defense is saying that they believe that the evidence will show that it was consensual. they are also pointing to his behavior after the incident, that he calmly went to lunch with his daughter, not necessarily in keeping with someone who had just committed a violent crime. what physical evidence, if any, will help prove her story? >> the physical evidence or forensic evidence has been accumulated by the police and the district attorney's office. they possess it. they control it. i can't comment on it. >> some of it has leaked out that there is swaths of carpeting removed from the floor wells other things. how is that going to play into proving that it was not consensual if his defense is that this was a consensual sexual encounter? >> my commitment is that i would do nothing to interfere with the district attorney's office. all i can do is sfeek on behalf of this woman who i have spoken

ngthto i think the strongest part of this case will be her testimony. >> how many times have you met with her? >> quite a number of times. >> jeffrey shapiro, thank you so much for joining us today. thanks for being here. >> we are going to take a quick break. when we come back, more news on the arnold schwarzenegger/maria shriver front. the other woman now revealed and also perhaps some legal moves on the part of maria. hands off the 401(k). how to make it harder for you to raid it but easier to pay back in if you do take a hardship withdrawal. 20 minutes after the hour. ♪

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>> 23 minutes after the hour. android phones open to attack. scientists said they found a major security flaw that have affects almost all cell phones running google software that can give access over an unsecured

wi-fi network. google is aware of the problem. a fix is already in place for the calendar and contact applications. the dow begins at 12,560 coming off an 80-point gain. the s&p gained 11 points. lawmakers introduce a bill to curb boroughing from 401(k) funds. they say many people use it as a piggy bank and they can't repay their loans. they will be limited to three loans at one time. teaming up with lady gaga. the chain will host a social media scavenger hunt featuring lady gaga including an all-access pass to one of her shows. back after the break.

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turns out that the child that arnold schwarzenegger admitted that he fathered with his housekeeper was born just days to their youngest son. "people" magazine is reporting that shriver has hired a high-powered defense attorney. we are getting the first look at the other woman, her name is mildred patrick ya baina. >> these are pictures from her

my space page. thelma is live outside her home. it seems every hour, more information is coming out about this. thelma, what do we know? >> i can start by telling you that we do know that mildred biana is not here at this home. this area has been crawling with reporters and cameras and paparazzi and neighbors say they haven't seen her around all week long. we do know she is 50 years old, a native of guatemala. she worked for the schwarzenegger family for 20 years as the housekeeper. one of the neighbors said that she had come into this neighborhood about two months ago with her 14-year-old son and told some of the neighbors that she had worked for the schwarzenegger's and that she was definitely retiring. >> also, cnn getting that document, getting their hands on some documents.

what about the birth, what do you know about that? >> reporter: kiran, we do know that that birth certificate that was obtained by cnn shows that mildred biana actually gave birth to which child just days after maria shriver gave birth to her son, christopher. it also mentions the father of the child as being her husband, at the time. that's what it shows but we know that. we know she petitioned from a divorce from that man. >> do we know what her marital status is now? >> reporter: christine, what we are learning is that she is divorced. she filed for divorce in van ives, california, back in 2008. she had been married for ten years. the divorce document shows that she was separated three weeks after the child's birth. what's really curious to note about that, christine, is that under the category that asks for

a declaration of children. she marked a box indicating she had no minor children with her husband at the time. christine, now, we know why. >> we don't know anything about whether any support was flowing from arnold schwarzenegger to this woman? >> reporter: we do know that a source close to arnold schwarzenegger that he did support this child from birth. we do know that. the form that took place, we are not sure. >> thanks so much. >> thanks, thelma. >> there are other reportings that he wasn't told until the child was a toddler. still arks lot lot of question. >> dominique strauss-kahn now resigning his post as head of the international monetary fund insisting he didn't sexually assault a maid in his manhattan hotel room, calling the encounter consensual. he will be in a new york court

today asking to be released on $1 million bail. a military tanker jet crashes and burns at point mugu naval point in california. three crew members on board escaped with minor injuries. the plane was carrying 150,000 pounds of jet fuel officials say. the ntsp is investigating the crash. al qaeda is claiming it is the voice of osama bin laden praising the invasions in tunisia and egypt. they refer to him as the martyr of islam encouraging lus mmusli rise up against corrupt influence. president obama is going to deliver a major speech outlining u.s. policy in the middle east. >> including the $2 billion boost for egypt and tunisia where the arab spring reform movement began. ed henry live at the white house with a preview. we have a complicated narrative. why react one way in syria but a

different way in libya and yet a different way in egypt and how does the u.s. harness the air rob spring to promote democracy in the region? >> reporter: these are hard questions. this president has been under pressure from some critics since the arab spring began a few months ago wondering why the u.s. didn't act sooner, didn't jump in and try and help some of the peaceful protesters. this president's reaction has been, look, there is, first of all, not a one-size fits all to all of these important countries. he didn't want the u.s. to be dictating the outcome in all of these countries. he is walking a fine line. what white house aides say he wants to do now, he sees a moment where everyone hasn't been able to take a breath after a few months of real tumult. what the u.s. can do to try and help some of these emerging

democracies. egypt and tunisia. also, the president is going to talk about more trade with the region to try to boost people up as well as setting up a fund to boost investment. the reason for that is the president believes this was not just about human rights, a lot of these peaceful protests in the arab spring. there was also like millions of arabs feeling like there is a the lot of economic inequity and difficulties getting basic jobs. the u.s. wants to foster some democracies by pouring money into the region. osama bin laden has been killed recently. a lot has changed since the two years since the president gave that speech to the muslim world in cairo. >> any reaction to this so-called osama bin laden tape that the jihad websites are

putting out there? >> reporter: now that he is dead, as one white house aide said, we are trying to turn the page and push forward. with osama bin laden being killed and brought to justice that now this could lead to some whole new u.s. foreign policy successes in that region. i think if you look back on the president's cairo speech two years ago, he also talked about sort of the u.s. trying to help offer an alternative to young muslims, an alternative from al qaeda. they believe inside the white house that now that osama bin laden has been brought to justice, that message can be hammered home. that's another big reason why the president is pouncing now. kiran? >> speaking about a message being hammered home, what is going on? all i hear is banging. >> we can't decide if it is paul bunion or john henry working behind you. >> reporter: i am working hard. they are working hard behind me. they are digging this big tunnel. nobody knows what they are doing. >> i hope it is not the end times tunnel outside the white

house. >> reporter: they voenl tonly h days. three hours from now is when the president is going to deliver that speech, 11:30 eastern. >> about the middle east policy, not the end times. >> we will carry it for you live. in case you don't believe the world is coming to an end, you may be interested in finding a job. a lot of unemployed people around. we have some ways to actually try and change unemployment in the country, bring it down and get more americans back to work after the break. >> five ways to bring down unemployment. 36 minutes after the hour. and with its virtualinstrument, sensuous leather interior and modern design, jaguar has once again raised the bar. learn more at jaguarperforms.com. 8% every 10 years.age 40, we can start losing muscle -- wow. wow. but you can help fight muscle loss with exercise and ensure muscle health. i've got revigor.

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♪ 40 minutes past the hour. take a look at dallas this morning. it is cloudy but 72 degrees. a little bit later, going up to a high of 86 degrees. a little song by our buddy, trace adkins. the concert last week for the flooding and tornado victims. we are taking a critical look at the jobs series with an in-depth series "american's job hunt." what we need to do to put this country back to work. >> a lot of potential solutions, invest in manufacturing, retrain workers in their 40s and 50s, double down on growth industries, foster small businesses and create short-term jobs through building infrastructure. >> we want to talk about all of these ideas and how we can make them work. let's go through them with rhana, assistant managing editor

at "time" magazine. we saw the unemployment rate ticking up to 9%. people want to know there is hope out there. >> absolutely. there is some hope. what's difference this time around, we have had growth without job growth. the economy is growing but jobs aren't coming back. that's really different. there are things that we can do as we have laid out in our story this week. >> it is interesting. we talk about retraining. that's not something we have done well. we have never had to retrain on a massive scale before. globalization has been our massive strategy. a big chunk of the economy has been left behind by globalization. how do we retrain all those people and spend money when congress doesn't have a lot of room to spend more money? >> if you look at companies that have done them well like germany, there steems to be a a lot more political cohesiveness.

there is a big disconnect between jobs and skills. there are jobs and the skills aren't there, especially amongst young people. >> let's talk about retraining. in one of the pieces that you worked on with fareed zakaria, something where the government spear heads or pays for retraining for older workers. it is not being done. we have got this big bubble of unemployed people that have 30, 40 years to live but don't work. >> absolutely. we have all heard about the mansession. older men, above 50 have been hard hit by this. retraining should happen across all age groups, we think. but there are other ways to grow the jobs market. we can look at growth industries, health care, entertainment, tourism, these are areas that america is very strong in globally and could become stronger in. >> how much is the fight in washington to make sure that spending is cut, that we are down to bare bones, effective innovation when it comes to finding new and creative ways to create jobs?

>> i think you can make a strong case that it has a lot of countries and companies that invest in innovation and grab market share. we have a story about prat and whitney. this company over the last ten years has grown an area of innovation. they have thousands of new jobs to show for it. >> you talk interestingly enough about what it takes from that one engineering student to be hired and the amount of money it costs to train that person and what they end up bringing to the workforce. that's a very fascinating look. >> yeah. we have a great graphic. it shows how one engineering job has led to 1,000 jobs throughout the country. >> do governments help create jobs or does private industry? >> let's settle it right now. put up your hands if you think government can help create jobs. it absolutely can. >> government can create the atmosphere in which the private business does. private business has a good atmosphere. they are sitting on their money.

how do you unlock it? >> it goes back to your point about globalization. there is a huge disconnect between the fortunes of the best companies in this country nd athe labor. that's because they can put jobs and new businesses anywhere in the world. what government can do is encourage them to keep them at home. >> i remember when we were talking about the stimulus, obviously, that's become a dityt word because of our debt and our deficit an all of that. that would help in the short-term but eventually lead to long-term success. what happened to all of the infrastructure project. things we were talking about to get people working again but also improve the country. >> i think what happened is politics. we have an incredibly c contentious environment in washington. there is a continuous growth as fareed mentions. we could spend $2.2 trillion on infrastructure in this country and put a lot of people to work. >> money that needs to get spent and to get borrowed for us to

use it. >> it is not going to get borough borrowed until the debt ceiling is raised. >> unless the world comes to an end. on air and online, we are on the job hunt. check out ccnn money.com to chek out where the jobs are. we will be right back. i love all the gadgets. check out the backup cam.

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here are your headlines. the coast guard is searching for three people missing after two ships collided, a fishing boat nd a larger container ship. the accident happened late last night in the gulf of mexico, a few miles off the coast of gulfport, mississippi. officials say that fishing boat sank. 16 people were on board. the former head of the international monetary fund is preparing for a bail hearing today in new york. dominique strauss-kahn resigned from the imf late last night. he is accused of the attempted rape of a made in his new york city hotel room and says he stepped down to devote all of his enj i to proving his innocence. al qaeda out with an audio message said to be recorded by osama bin laden just before his death. the message talks about the revolutions in egypt and tunisia and calls for muslims to rise up against western influences. we are a little let's than three hours away from president obama's formal response to the new developments in the middle east. he will deliver a speech from the state department. cnn will carry it live at 11:30 a.m. eastern. queen elizabeth offering

deep sympathy to ireland, at a historic state dinner at dublin castle. she shined wearing a diamond deera and neck also and a white silk dress with 2,921 hand embroidered shamrocks. it looks like stocks will open in positive territory. dow futures up 37 points. you are caught up on the headlines. we are back after this break.

♪ don't tell me how to live my

life. i am going to atlanta on the weekend. i'm missing the place. it is 58 degrees, partly cloudy, the same as partly sunny and 77 degrees. >> it is whether you are an op tim mist or a pessimist. >> my wife says the sun is trying to peek out. i say they are just doing what they do. >> we like to give them motivation. the census view giving us an interesting shot of the american family. cities like denver and atlanta were popular destinations for young families in the '90s. today, the 55-64-year-old populations in the areas surrounding these cities has doubled in the last decade. other attractive areas to baby boomers who are retired or near retirement, albuquerque, los angeles, phoenix and seattle. >> how did minneapolis get in there? everything else has something to

do with that. >> you like minneapolis? >> i do. my cousin told me it is now hipper than new york. >> they are not scared of the weather. it is perfect. fewer americans are getting married. those who are already married are staying together longer than they have in years, more census information. they say that three out of four couples who married after 1990 were still together by the year 2000. three out of four. >> great. >> it was a recession. who could afford to get married? >> christine, come on, people waited longer to get married. they didn't rush into it. they did it for the right reasons. >> more love. >> there you go. congratulations, a 3% increase from the 1980s. >> that royal wedding is over but you can still dress like royalty. remember princess beatrice show-stopping hat. >> what did you call it? >> the pretzel. >> is that a fast nay tore? >> a fast nay tore is anything

that gets fastened on. >> looks like a toilet seat with a bow around it, your right. >> up to $30,000, the money from the sale is going to unicef and crisis charities. >> i think it bought her endless amount of public relations. >> absolutely. speaking of big money, according to cnn.com, the top ways people waste money are atm fees, lotto tickets and gourmet coffee. what do you waste your money on? >> dakota writes, i waste $49 a month on a gym membership that i have never used since i signed up last yjune. >> if you used it, how great would that be. >> i have had gym memberships since ever since i have known you. it has had no effect on my body,

because i don't go to them. >> i have another one here from facebook. i spend a lot of money on takeout and dining out. that's the price you pay when the only thing you can cook with is the microwave. >> we don't pick e-mails that reflect what we do. >> $250 a month on cable and internet. what are you gonna do? ali says this is something you have to have. i don't know that that's a waste. how do you get a job? >> a lot have you said cable and internet, a lot of money. renee as a nontraditional nursing student, i need a vice, my vice is starbucks iced coffee. i use my own cup. so i save 10%. >> if it makes you a better student, go for it. >> twitter writes, my wasted money goes to red bull energy drinks. >> custom nike shoes. i rationize it by going to the gym. >> you can pick whatever color you want, whatever swish you want.

it is fun. >> this is way beyond me. >> you would get the custom nike shoes and not go to the gym. >> a huge waiste. >> we are going to be back in a couple minutes. 54 minutes after the hour. annou] in 2011, at&t is at work, building up our wireless network all across america. we're adding new cell sites... increasing network capacity, and investing billions of dollars to improve your wireless network experience. from a single phone call to the most advanced data download, we're covering more people in more places than ever before in an effort to give you the best network possible. at&t. rethink possible. if you have painful, swollen joints, i've been in your shoes. one day i'm on p of the world... the next i'm saying... i have this thing called psoriatic arthritis. i had some intense pain. it progressively got worse. my rheumatologist told me about enbrel. i'm surprised how quickly my symptoms have been managed.

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four minutes from the top of the hour. when you think of the centers of disease control, you don't think funny but they get creative points for the message on emergency preparedness. >> this is a post by the assistant surgeon general. it asks, are you prepared for the impending zombie invasion and instructings the public for flesh-eating zombies. >> the steps you take is the same basically as those suggested in advance of a hurricane pandemic like, for example, if you can prepare yourself for these people behind us, then you can survive anything. >> where do they get those creatures? >> it looks like our coanchors. >> they crashed the site and it

was wildly popular. >> how would you prepare for flesh-eating zombies? >> i think you have to have water in the basement. >> go to the website and find out. >> in the meantime, save the date, may 21st, 2011, this saturday, end times. >> that's the date that some people say the end of the world is coming, as in, the end of the world. in the very short time she has left, our jeanne moos spoke to some of the true believers. >> reporter: i hate to be judgmental but when you keep seeing judgment day this saturday, the end of the world is almost here, it doesn't improve the daily commute. here is what's supposed to happen around 6:00 p.m. eastern saturday. >> the largest earthquake the world has ever seen. banks, buildings will collapse, quite awful. >> reporter: like the disaster movie, 2012, arriving early. earthquakes worldwide.

believers will experience rapture, heavenly ascent. while nonbelievers will stay for a few hellish months until the fiery end of the time. >> 97% of the people god will destroy. >> reporter: the low-key and polite folks who believe this need tough skin as they hand out their leaflets. >> it is all over, it is all over. >> see you this time next year. >> reporter: you are absolutely convinced? >> yes, because the bible guarantees it. >> the bible as interpreted about i this california preacher, harold camping, head of family radio. lately, he has been getting black. >> we are worried about false teachers and buddy, you are one of the worst. >> reporter: he miscalculated his last end times prediction for 1994. >> reporter: what happens if on sunday we are all still here and there is no earthquake? >> well, there will be an earthquake. >> reporter: this retired new york city transit