similar to one that could have happened a month ago, a few weeks ago. we ended up costing $1.2 billion or $1.7 billion in interest because we had to renegotiate some stuff, plus lost taxes from the faa. somewhere close to $3 billion in determinable extra money. your one gain after eight losing sessions in the markets. carter everybody vance at the nasdaq market society. that's it for us. "american morning" starts right now. and good morning, ali. a done deal, at least for now. i'm christine romans. president obama signs the debt ceiling compromise into law, but the budget battle far from over. plus, why the markets are less than impressed with the debt deal. >> and good morning to all of you. i'm carol costello. egyptians never thought they would see this, their former president hosni mubarak on trial. he and his sons facing the death penalty. we are live in cairo just ahead. >> you're about to meet a cop who can't be stopped. run him down with a speeding car

but you won't get away. the video that has everyone talking on this "american morning." good morning. it's wednesday, august 3rd. this is "american morning." a lot going on today. we should get right to it. >> yes, we should. >> isn't the debt deal done? >> it's not done yet. they have to do the super committee. >> and decide what they will cut, cut food inspectors, education grants, they are going to cut stuff out of education. >> at least some of it is done? >> some of it done. one of the bitter and dangerous debates this recent history is now history. the bill to raise the debt ceiling and cut spending is law. this is a picture of president obama, he signed the bill in private. nobody around him. notice that. he doesn't look very happy either, does he? he called the compromise a first step toward fixing the economy, though, and argued more must be done.

>> this is, however, just the first step. this compromise requires that both parties work together on a larger plan to cut the deficit, which is important for the long-term health of our economy. and since you can't close the deficit with just spending cuts, we'll need a balanced approach, where everything's on the table. >> so see, ali, the debt ceiling fight is far from over, but the showdown over the national debt has only just begun. now a group of 12 lawmakers, the so-called super committee, is responsible for identifying $1.5 trillion in cuts by the year's end. send up to congress to pass that plan or risk deep cuts to programs that are important to both parties. >> plenty to talk about. for months to come. because the debt ceiling bill is now law, at least one fear has been alleviated. two of the nation's leading credit agencies decided not to downgrade america's credit rating. still at aaa.

by no means has the cloud of economic uncertainty cleared, unemployment still high, economy barry growing and as the ceo of the investment firm pimco told piers morgan last night, there are jitters, the u.s. credit rating could be downgraded. >> a negative outlook means there's a possibility of a downgrade. s&p has take an further step. they have put the u.s. on a negative watch. a negative watch means they will downgrade the u.s. unless good things happen, so the market is very nervous about what s&p is going to say and expect it to say something in the next few days. >> he said all of this drama in washington did more harm than good. raising a political problem caused by washington, concerns about the economy that drove the dow down more than 260 points yesterday and the nasdaq was down. the sell-off pushing the s&p 500 into negative territory, folks, for the year now. >> and congress may have finally acted on the debt ceiling, but

the gridlock that continues to grip the nation's capital means a number of important things did not get resolved. one of them is funding for the federal aviation administration. we've been talking about this because it's not only costing the government money, it's costing real americans their jobs. >> 4,000 faa employees have been furloughed, through no fault of their own. 70,000 construction workers are out of work today. 70,000. and here we are, right smack dab in the middle of the construction season in america. >> ted rowlands live at chicago's o'hare international airport for us. what's the impact of this lack of funding? >> well, ali, we should point out right away that safety is not impacted at all at airports like o'hare. that's a totally different pot of money. passengers will not be impacted in terms of long lines, et cetera. that is off the table.

what is impacting airports are the construction jobs, stop orders put out on hundreds of jobs across the country at airports like o'hare, meaning those construction workers, 70,000 of them, are not coming to work together and those 4,000 faa employees are furloughed indefinitely while congress continues and takes its august recess. take a listen here to randy babbitt the head of the faa, he is very frustrated. >> this can't go on a day longer, much less six weeks longer. we're going to suffer a lot of long-term damages. we have billions of dollars in construction money that should be going out the door that's not. this is money that's available. we can't spend it. >> and ali, as you can imagine talking to passengers here, for those folks already frustrated with washington, this really leaves a bad taste in people's mouths in that they just left on their august recess without getting this done. this is something that they've been haggling over since 2007.

they've had band-aid extensions. they couldn't get that done. people very frustrated. a lot of the flying public frustrated at the inability for the two parties to get together and come up with something to at least keep these jobs going when -- as ray lahood said earlier, this is the middle of construction season in an industry that is really hurting right now, the last thing people need. >> ted, the construction is not getting done. but the bottom line the faa has said safety is not in jeopardy. the air traffic controllers are on the job, the security workers on the job, but i'm going to talk to a former faa head earlier who says there are concerns, there are safety concerns, this could be a safety concern. have you heard any of that? >> well, one thing that is impacted here is the inspectors that go around to different airportings and they check the tarmac and the systems and towers, those guys are working even though they're furloughed and expenses right now are being shouldered by themselves. there's an faa memo that was

leaked basically telling some employees, put the expenses on your own credit cards until we deal with this. with congress gone and this could be a month now, there will some safety concerns as you mentioned. however, the official line from the faa is no concern over safety. >> wow. it's a good thing the government has a good credit rating so people put things on their credit cards they know they're getting paid. ted rowlands at chicago's o'hare airport. can you imagine that? >> no. >> that's like being in the government and not getting paid for three years. >> how is that fair? >> i read an article by one of these workers who are just waiting to see what happens. he doesn't make that much money. he said to put his mortgage on his credit card. causing a lot of hardship to a lot of people unnecessarily. >> biggest economy in the world. it's just -- >> yeah. >> political gridlock. >> one thing that does work the secret service. it works well. did you see this last night? a security breach triggered a lockdown at the white house last night, unfolded during "cnn's

john king usa show" produced from the north lawn of the white house where this man with a backpack jumped the fence in front of the white house. it did not take long for secret service agents to come rushing in, guns drawn. here's how it unfolded. >> we want to alert you we're not sure what's happening here. i do not want to alarm you. from time to time packages are left here and they go on to high alert. the secret service has rushed out of the white house, guns drawn. i covered this building for eight years. see someone has jumped the fence, see on the video here. >> well, the secret service did take him into custody. they did have guns drawn, they really did. they described this guy as a homeless man who was previously ordered by the courts to keep away from the white house. secret service is not saying he posed any sort of threat. he's being charged with unlawful entry and contempt and after living many years in washington, this stuff happens pretty often. >> yeah. >> sadly. and it's scary, but -- and, of

course, they never treat it as routine. >> sure. never know. >> it's difficult to get inside of those gates. one time a production snafu, sent somebody flowers who helped me get a live shot located on the lawn and i said did you get the flowers and they burst out laughing all those things are blown up. don't send flowers to the white house and don't take a backpack and jump over the fence. your flowers, pizza, card will not be received. it's being called the trial of the century in the middle east this morning. just a few hours ago in cairo, ousted egyptian president hosni mubarak arrived in court along with his two sons to face murder and corruption charges. mubarak driven from office six months ago after three decades in power forced to lie on a gurney in a cage in a courtroom facing the death penalty. cnn's ian lee joins us live on the phone now from cairo this morning. ian, what's the latest? >> well, christine, right now the protesters are making their

case. this is the preliminary session, so they're asking for different witnesses to be brought forward, but both parties, both the prosecution and defense, have asked for field marshall to come in and give his statement and to give his account of the events happening. both are asking for him to come in and he is the de facto leader of egypt right now. these are progressing along. >> all right. ian lee, thank you so much. really compelling moments from inside that courtroom and a remarkable change, gosh, change of scenery for the former egyptian president on a gurney in a cage in a courtroom. in 30 minutes we'll talk about this trial and the impact on the arab world when joined by journalist and middle eastern expert mona eltahawy.

what a bizarre sight, hosni mubarak lying on this hospital bed in court. we'll talk about that. now your chance to talk back on one of the big stories of the day. our question this morning, who do you trust to create jobs? as the senate passed the debt deal, president obama assured americans you can trust him. he's working on it. >> coming months, i'll continue also to fight for what the american people care most about, new jobs, higher wages, and faster economic growth. >> the president wants to grant loans to private companies so they'll hire people to work on the country's roads and bridges. republicans want to cut spending and they don't want to raise taxes or eliminate any tax breaks, hence the debt deal. a deal most economists say will not spur job growth. republicans argue it's too soon to tell but we do know this, most big companies are not hiring. they're actually laying off workers even though they continue to sit on piles of money. cnnmoney.com did digging.

here's what they found. since january of 2010, businesses with more than 500 or more employees, have lost 29,000 jobs. small businesses are hiring. they've a added nearly 2 million jobs. they're not sitting on piles of money like the big guys. the big guys are sitting on $1.5 trillion cash. despite the fact president obama created a commission to convince ceos to spend some of that money on hiring. so, talk back this morning. who do you trust to create jobs? send us an e-mail, actually why don't you send your comment to our facebook page. facebook.com/americanmorni facebook.com/americanmorning. we'll read some of your comments later this hour. >> some of the big companies are sitting on piles of cash and opening r and d facilities in other country where they're looking for investments and new ideas and innovation and talent. some of the companies on the president's competitive council.

>> ain't that grand? >> yeah. democrats venting their frustration, comparing tea party republicans to, quote, terrorists. will this help or hurt their movement? >> about to meet one tough cop. you can't stop him with a speeding car. 13 minutes after the hour. ooo whatcha got there? uh oh, sesame stir fry from lucky dynasty. oh, me too! but mine's lean cuisine, so no preservatives. [ female announcer ] lean cuisine has 90 dishes with no preservatives and quality ingredients like farm-picked broccoli and tender white meat chicken. lean cuisine. with aveeno nourish plus moisturize. active naturals wheat formulas target and help repair damage in just 3 washes. for softer, stronger... ... hair with life. [ female announcer ] nourish plus. only from aveeno. [ coughing continues ] [ gasping ] [ elevator bell dings, coughing continues ]

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tell us what you want to pay. we do our best to make that work. deal! my money. my choice. my meineke. it is 15 minutes past the hour. time to get up, pay attention a little bit. because i think the new catch word in the world of politics is bizzaro or maybe terrorists and i don't mean the osama bin laden kind. tea party politicians up in arms over allegations vice president biden called tea partiers terrorists during the debt ceiling debate. he didn't. his people told our people. the word used by several members of congress. the vice president does not believe it's a appropriate term in political discourse. no matter. tea party leader and presidential contender michele bachmann is using this drama to raise money and sarah palin using it to thrust herself back into the spotlight.

here she is on fox. >> independent patriotic americans who desire fiscal sanity in our beloved nation being called terrorists, heck, john, if we were real domestic terrorists, president obama would be wanting to pal around with us, wouldn't he? he didn't have a problem palling around with bill ayers back in the day. if we were domestic terrorists i think president obama wouldn't have a problem with us. >> palin invoking bill ayers once again. who better than john avalon, cnn contributist and esen tryst extraordinary. it sounds sillty on its face but trying to restore civility but now democrats seem guilty of this. >> we have this cycle of insightment in politics. fear amongering and fund-raising off that fear mongering and ♪ er side is immune. >> it is effective. >> hate is a cheap and easy

recruiting tool. the extremes are the worst enemy. this stuff does not happen in a vacuum. it's becoming a real problem in our politics. look, terrorists are terrorists. tenth anniversary of 9/11 coming up. that's unacceptable and should be condemned. both sides treat their extremes as well, they may be crazy but there are crazies. >> i want to read something jenna goldberg wrote. he said all over the place conservative respectens are hostage takers and terrorists and traitors. they want to end life as we know on this planet. jonah writes today, that the tea party republicans can put aside their suicide vests. so, is it a case that liberals, let's say, democrats, are sick of the conservative right controlling the agenda, using these tactics? why not adopt the tactics themselves and fight back that way. >> because it's bad for the country. i mean, that's the problem we're seeing right now.

i mean, when sarah palin criticizes, we go back to death panels or michele bachmann taking umbrage when she uses language like president obama bringing tyranny and slavery to the united states. when you throw that card and try to fund raise off it, you're playing politics by talk radio rules. no such thing as two extremes. a funding apparatus off that. when democrats start echoing that and ratcheting up that rhetoric, some democrats are willing to excuse it because it comes from their side. the point is we have to be consistent about condemning it or otherwise that gets out of control. >> condemn the democrats saying these nasty things about the tea party, but how much money did michele bachmann raise? >> $13.5 million last cycle. >> this has become a business plan. that's the problem in our politics. fund-raising off fear amongering and a real problem in our politics. >> look at the overall picture back to the health care debate, we must do it for a second, but

remember the death panel thing. totally untrue, but that phrase death panel, it was hateful, stood out, stuck, and did make a difference in how we debated the health care debate. >> that's the danger, a temptation to throw the bomb to try to resonates, mischaracterizes, and it all of a sudden frames the debate. this is the problem. this goes back to something old in our politics, what's called the paranoid style in american politics and when you pander to that lowest common denominator you can get results in the short run. this gets back to the 70% of americans think that politics are acting like spoiled children. people seem more interested in scoring points than solving problems and offended by that approach. doesn't mean it's not effective but it does require you have to think a little bigger and be a little bigger. remember sort of an old lost adage that roosevelt used to say, decency is the most

influential kind of politics. we have a breakdown on our civility. folks are playing politics by talk radio rules and starting to have an impact on our discourse on both sides. >> maybe it's the voters, because you know these polls came out and consider lawmakers childish and stupid and idiots, but if this rhetoric works to fund raise, then politicians are getting a mixed message from voters and isn't it up to us to say stop it and penalize the politicians in some way, which we kind of don't? >> that's the problem. there is a lack of accountability, right. they'll use fear amongering and then take offense when the other side starts engaging in the other thing and fund raise off it playing the victim card. that is the part of this cycle of incitement we've seen. it's going to stop when both sides stop criticizing the extremes on both sides. they're willing to use these folks to mobilize the base in elections, willing to fund raise off it, but that's really becomes the issue.

the cycle of incitement gets out of control. we're heading into a new election cycle. if folks don't think this will get worse you need to wake up. >> i knew you would love this topic. i knew it. i'm going to throw it back to my fantastic, fabulous and talented colleagues. >> good to have him in the morning. he gets you ready to go and irritated right away. >> sounds like he's been up for a lot longer than all of us. >> i know. 21 almost 22 minutes after the hour. we'll check the business headlines after the break. >> many of them. historic drought in texas unearthing a piece of american history from the doomed shuttle "columbia" mission eight years ago. this was a surprise no one expected. it's 22 minutes after the hour. hey can i play with the toys ? sure, but let me get a little information first. for broccoli, say one. for toys, say two. toys ! the system can't process your response at this time. what ? please call back between 8 and 5 central standard time. he's in control. goodbye. even kids know it's wrong to give someone the run around.

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minding your business this morning. u.s. markets took a nose dive yesterday. the dow, nasdaq and s&p 500 all dropped more than 2% to close out the day. a weak report on consumer spending pushing stocks lower across the board, even after president obama signed the bill to raise the nation's debt ceiling. the s&p now, by the way, is lower for the year. credit rating agency fitch confirmed america's aaa rating yesterday after the debt ceiling bill was raised and moody's did too but lowered its outlook on u.s. debt to negative. investors holding their breath for the third major player, s&p, to pipe in. the agency said this morning they are not commenting yet on the u.s. debt deal. right now u.s. stock futures trading higher because america has avoided default for the new bill and retained its aaa credit rating and the dow down eight days in a row so a bounce back is probably in the cards. all three market indicators are up so far. investors sorting through

more economic reports today. new data on the number of jobs created in july. there's also factory orders from june and information on the services sector, all of those coming out later this morning. wall street still nervous about the big jobs report. this is the important report that comes out on friday. investors hoping for a bright spot with earnings to boost markets today. clorox, mastercard and cnn's parent company time warner release earnings before the opening bell and later, dunkin' brands will release its first quarterly earnings report since going public last week. "american morning" will be back after this break with a city in new england declaring bankruptcy. discover customersl are getting five percent cashback bonus at the pump... and at many of the places their summer plans take them. it pays to switch, it pays to discover.

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that's health in numbers. unitedhealthcare. 30 minutes after the hour. that means it's time for this morning's top stories now that president obama has signed the debt deal into law a so-called super committee of 12 lawmakers is now responsible for slashing $1.5 trillion from the federal

budget deficit. they have until november 23rd to come up with their recommendations. congress will vote the plan up or down. the whole plan, no changes, no amendments. the corruption trial of former egyptian president hosni mubarak and his two sons getting under way in cairo. security is tight. inside the courtroom mubarak is in a cage on a stretcher with an oxygen tank. he's facing the death penalty accused of conspiring to kill hundreds of protesters during the 18 day uprising that drove him from office. tropical storm warnings across the northern caribbean as emily moves closer to haiti and the dominican republic. winds topping out at 50 miles per hour but flooding could be the major problem in the islands. the forecast says emily could skirt the east coast of florida by early saturday. tough times for folks living in central falls, rhode island. we told you about this story yesterday. the town was forced to file for bankruptcy after failing to get police and firefighter retirees to give up half their pensions.

mary snow is live in central falls this morning. a name that will ring a bell with some people, mary, this is not -- for a little town in rhode island it has had national headlines before. >> absolutely, ali. this is a town where the entire school system had to fire its teachers at one point because the state was strapped for money. the teachers are under the state system, but police and fire and you've just mentioned those pensions, that became crucial and why this town filed for bankruptcy, state officials are calling this a cautionary tale for cities and towns across america that promised benefits on pensions 10, 20 years down the road and now the time is coming and the money isn't there. $80 million in unfunded pension liability. and there are also cuts to the police force, the fire force. talking about a 40% reduction that's caused a lot of concern among the people here, particularly among some store

owners, business owners, one of whom said he was recently robbed. >> somebody break in and steal cell phones, about three or four computers. i don't know what happened. the police [ inaudible ]. who takes, you know, care about us? >> they won't be here in time. i will have to wait a while before they get here. >> now one thing being looked at, can services be shared with other surrounding towns? nobody's hop oggen that because they're afraid of being dragged down themselves. this is not a problem confined to this one town. rhode island has been recognized with one of the most expensive retirement systems in the country, one of the worst funded. the state treasurer has found $7 billion in liabilities. she has been tasked to reform the system. >> nobody wants to make the tough choices. central falls proves that. these choices will be made for

you. if you don't act quickly enough, consequences will be devastating and so as hard as this is now for me for the governor, for union leaders to come to the table to fix it, it is much easier to fix it now than when you're on the brink of bankruptcy. >> reporter: ali, state workers are looking at cuts in their pension system come this october. there is going to be legislative action to try and tackle this massive problem in the state. ali? >> so the question is, whether this is unusual with central falls or whether this is a picture of things to come in many other parts of the nation. mary, thanks very much for that report. mary snow in central falls, rhode island. the drought conditions in texas leading to a bizarre find. a remnant of the space shuttle "columbia" which broke up upon re-entering the atmosphere back in 2003, that remnant has been discovered in a dried out lake bed in nacogdoches. nasa official says the object in

a tank that -- it's a tank that provided power and water for shuttle missions. >> cool. >> yeah. >> who's keeping it? >> it's going to go to kennedy space center which is where all the rest of the relics -- >> the "columbia" pieces. >> not finders keepers. >> not finders keepers. >> darn. >> about to meet dan, he may be the most dedicated cop in england and the toughest. this happened last month. watch the passenger side of pasco's police cruiser. all right. gets -- set up a highway road block when a man in a stolen bmw slams into the back of his vehicle. by the way, the passenger side is what you think of as the driver's side. it's great britain. the force lifted pasco ten feet in the air. that's when the police officer instincts kicked in, bounced back to his feet, to chase down the car thief. >> somehow i got back up on to my feet thinking, i'm slightly better off than i thought i was. went back into police mode

rather than sort of normal people mode and decided that it was time to go and arrest someone who put the public in danger. he ran down an embankment and tried to climb over a fence and at that point is when i drew my taser and tasered him in the back. >> as soon as the suspect was apprehended, dan pasco collapsed. he push pretty banged up. didn't suffer serious injuries. the car thief sentenced to 23 months behind bars. >> like robocop there. >> he was getting out of the car, he's out of the car when this guy hits him and he bounces off. i mean, i'd still be sitting around thinking what happened. >> your adrenaline kicks in, i totally get it, you want to get this person who did this to you. >> that is a tough cop. >> when the teleprompter goes down you know what to do. >> my instinct kicks in. >> anchorman mode. just ahead, former egyptian president hosni mubarak on trial, our next guest says the outcome could change the course

of history in the middle east. it's 36 minutes past the hour. h. the authentic, the rare, the hard to define. to those always searching for what's pure and what's real from we who believe we know just how you feel. haagen-dazs.

on the streets of cairo

people are shaking their heads in disbelief, no one in egypt thought they would ever see this day -- no one ever saw quite a kay like this in a courtroom. former egyptian president hosni mubarak in a courtroom in a hospital bed, with oxygen, and he's inside of a cage, a jail cell. that's how he's being tried for murder and corruption after three decades in power, he faces the death penalty along with his two sons and he says right now he's pleading not guilty. mona is a journalist and an expert on muslim issues just back from cairo. this is the most bizarre spectacle. >> did you ever think? >> obviously every egyptian had a dream that some day mubarak would stand trial. this is a historic day in terms of symbolism, in terms of an arab country putting its own dictator on trial without an invasion as in the case of iraq when the u.s. invaded. but in terms of what's been happening in the courtroom itself, i know for most

egyptians i'm following on-line it's turned into quite a farce. but i think it's important to focus on the historic symbolism of what's happening in egypt today. >> before we do the important stuff, i just want to talk a little bit more about hosni mubarak because we've always seen pictures of him as a vital man, even though he's 83 years old, here he is lying on a hospital bed on oxygen in a cage in a courtroom. some people think he's pretending to be sick to garner public sympathy. what do you think? >> it's interesting during the 30 years of his rule if anybody dared to question his health he could face jail and many journalists were sentenced to jail terms for questioning how well, he was doing. yet since he was forced to step down, because of the revolution, we've been getting almost weekly updates on how frail he is, how he's in a coma, depressed. i've got to wonder what kind of strings of public sympathy he's trying to pull today because as you say he's in hospital bed with an oxygen tank but his hair is black, he's 83 years old.

he's obviously dyeing his hair. how sick is this man? >> he does have the energy to do that. i'm thinking there's something like really wrong with him, but they say high blood pressure, depressed, not eating well. there are a lot of people like that, like right now, working here, and we're not in a hospital bed on oxygen. >> my sympathies are with civilians who are undergoing military trial in egypt, simply for being revolutionaries and protesting against the military council that currently runs egypt. we've replaced one mubarak with a supreme council of mubaraks, the military running the country, who are his buddies. my sympathies lie with the revolutionariries and families of the martyrs. mubarak stands trial for conspiring to kill those people in the revolution. >> so let's say that mubarak is found guilty of all charges along with his two sons. will this really make any difference? things in egypt as far as the

pro-democracy protesters are concerned, are pretty much the same? >> that's the challenge in egypt, that things are the same regime wise because mubarak's friends are the ones running the country right now. why this trial matters is because egyptians want to see a concrete result, at least one concrete result from the revolution and putting on trial the dictator of 30 years who many people believe is responsible for the deaths of at least a thousand people, during the revolution, is really symbolic, not just for egypt but for the other countries around egypt because what's happening today is every dictator in the region is watching this in total fear, thinking he could be next. and all the citizens in the rejen, ordinary people in the arab or middle east of north africa are thinking we wish we could put our tyrants on trial. think of assad in sir ra who is massacring his citizens in hama and other parts and using this trial as a distraction. this is an important boost of revolutions across the region. >> it's just interesting as an

aside that israel is carrying this trial live. >> well, you know, israel, i mean most egyptians have complete hate for israel because they've been first of all because of the occupation and second of all because the israeli government made it very clear they supported our dictator. anyone who supported our dictator, there were five u.s. presidents who supported our dictator and you have to wonder those of them still alive, what are they thinking now that the man they kept calling a reformer and a stable president, he's lying in a cage pretending to be sick. it's pathetic. this is a message to everybody who supports dictators and dictators themselves that you will be held accountable. >> thank you so much for joining us this morning. fascinating conversation. i wish we could go on. >> thanks for having me. >> gridlock on the streets of washington, d.c. coming up the worst possible time for a woman in labor rushing to the hospital. 24-year-old jerimica shahpel was five days past the due date for baby number two as her father called 911, she was giving birth

in the front seat of the family minivan. >> baby just came out. >> i felt one push and i felt her head and i put my leg up further and pushed again and i felt her arms and stuff and the last push she came out on the seat. >> the baby's head was there. i'm still trying to drive. i'm like, oh, no. oh oh, no. >>. >> oh, no, oh, yes! oh, yes! when that baby is coming that baby is coming. an ambulance arrived moments after the birth to transport them to the hospital. we're told mom and her newborn daughter are doing fine although grandpa is still in shock. >> well done, grandpa. a combat veteran winding up his second deployment to afghanistan. our jason carroll has followed him to the front lines for his special series "a soldier's story." it's 45 minutes after the hour.

we're told mom and her newborn it's 45 minutes after the hour. mine was earned over the south pacific in 1943. vietnam, 1967. i got mine in iraq, 2003. u.s.a.a. auto insurance is often handed down from generation to generation, because it offers a superior level of protection and because u.s.a.a.'s commitment to serve the military, veterans, and their families is without equal. begin your legacy. get an auto insurance quote. u.s.a.a. we know what it means to serve. so i want to major in biology. miss gopie is the best teacher i ever had. she's amazing, i love her. [ jade ] i'm teaching jasmine ap biology.

i knew she had the talent... i always pushed her. [ jasmine ] her class you literally have to think, like it takes so long to do her homework. [ jade ] she's gained the confidence that she can achieve anything. [ jasmine ] i'm going to be a pediatrician... and i'm going to make this dream come true. a 100 percent. ♪ 47 minutes after the hour. now that the president has signed the plan to raise the debt ceiling, congressional leaders must establish a so-called super committee of six republicans and six democrats. the group's task is to find $1.5 trillion in deficit cuts spread over the next ten years. the murder and corruption trial of former egyptian president hosni mubarak is under way in cairo. mubarak is pleading not guilty to -- while lying on a stretcher with an oxygen mask inside a steel cage. jury deliberations set to begin in new orleans.

five current or former cops are accused of shooting unarmed civilians as they crossed the bridge in the days following hurricane katrina. tropical storm emily heading for hately and could create nor misery. tropical storm warnings issued across the northern caribbean where flooding could be a major problem. it could be a close call for the southeast u.s. and the nba owners taking it to the courts one month into the lockout now suing the players' union and filing an unfair labor charge against the players saying they're not negotiating in good faith. leonardo dicaprio tops the forbes list of highest earning actors over the last year thanks to his success on the film "shutter island" and "inception." he an earned an estimated $77 million. "american morning" back right after this. .

all this week, in a special series we're getting an up close look at life in the war zone. army sergeant randy shorter is a combat veteran. cnn's jason carroll has followed him from here to afghanistan. >> they met up again as sergeant shorter was finishing his year-long deployment. jason is here now. it's fascinating to see the changes in these guys. >> incredible. sergeant shorter was part of the surge, the thousand of men and women who headed into afghanistan to see if they could right some of the wrongs that had been done there. now the question for first sergeant randy shorter and his men as they wind down, is do they feel like they got the job done?

>> guy s ready? >> reporter: this village in southern afghanistan is a known safe haven for insurgents. >> that was a nervous feeling whenever you come to this village. >> reporter: days ago, these soldiers came under fire. >> go. >> reporter: first sergeant randy shorter and his men are back. >> watch that alley way there. >> reporter: on one of their final missions. >> we're clear. >> just cleared that area. >> we cleared the two main structures. now we're engaged in the actual elders, that actually live here. >> pretty tense when you go and do that? >> it is. >> all right. this is the last time in the state. >> reporter: it was august of last year when we first met shorter, just one of thousands of soldiers at fort campbell, kentucky, having to say good-bye, part of the so-called surge into afghanistan shorter was leaving behind his wife and two girls. for this fourth deployment, his second to afghanistan.

>> whether it's one week, one day, doesn't matter. saying good-bye is hard. >> reporter: shorter will soon see his family again. but first -- finishing the job after hundreds of missions, rooting out insurgents and reclaiming villages once under taliban control, shorter's deployment is coming to an end. >> tell them i have friends. i brought friends with me. >> reporter: one of the biggest challenges before leaving making sure the afghan army and aup, afghan uniform police, can lead security before more soldiers like shorter pull out as part of the expected draw down in u.s. forces. >> that's how you do it. got it? from now always have ap. tell your boys to [ bleep ] slow down. >> this little rough spots in the beginning but they're coming along. >> ap, trying to get -- >> afghan uniform police to take the lead. sometimes they're a little disoriented, on what we want them to do. only takes a few minutes and then they kind of catch on. >> reporter: shorter is confident in how he has trained his afghan counterpart police

commander saeed. saeed said he is ready to take over. but he tells me he still worries about fewer u.s. troops. >> are you leaving feeling like you've done all you can do? >> you know, jason, at first i felt like i didn't do enough. i can't change the whole afghanistan. if i do one small piece, i did my part. >> well, shorter says he's made an impact not only by working with the afghan police, but also by building strong relationships with afghan civilians. his hope is that the company that takes over for him when he leaves, is able to build on some of the progress they've already made there. >> you know what i wonder? so many of our troops that come home, suffer from post-traumatic stress syndrome and have all sorts of other issues. what's being done to protect the people that you've met from developing this? >> that's a good question and something we explore and you'll -- you will see that later this week.

people they can talk to, the army has set up, you know, special counselors, talk to when they get back stateside on the ground here. but there are a lot of issues they deal with and dealing with, you know, life being a civilian back here at home is one of the issues. but also, dealing with do they feel like they got everything done. >> right. when you hear one small piece to try to get his counterparts up to snuff and he feels like they're disoriented not getting it. i mean it must be frustrating to try to get that one small piece. we've heard it from a lot of these guys that say our job is to train the afghans to protect themselves and it's not working. >> look, i was there a year ago as you know, and between the year that -- in the year that i've seen, i have seen some changes in the afghan police and the afghan army. the question is, are the changes enough? >> sure. >> right. >> all right. jason, we look forward to two more this week? >> two more. >> love it. >> fascinating. thank you. can't wait until tomorrow. and now is your chance to talk back on one of the big stories

of the day. with the debt deal signed and d.c. turning its focus to putting americans back to work we ask you this question today, who do you trust to create jobs? this from lee, he says -- no one, if the federal government was going to create a jobs program it would have been done already. this from wayne -- and this from rick -- which, you know, that's interesting because how can you put a stop to it? private industry. >> companies only have to return shareholder value and shareholder value doesn't mean using their cash to hire people and that is the unfortunate truth. >> what if you gave tax incentives to companies to hire people who are unemployed. >> and we've tried that. >> in america. >> there was that in the

stimulus and small businesses are the ones hiring and there have been small business tax breaks but we've tried to give tax breaks before for relocating jobs overseas or repatriates assets overseas so they would hire here, didn't work. always a way around it. >> people have to sort of -- >> you're depressing me. >> it is upsetting. labor rates are that much cheaper elsewhere in the world. it's complicated. not as simple. >> when you don't have any regulations somewhere else, you know, hey. >> well, we want to keep the conversation going and if you want to vent, please do it on our facebook page. facebook.com/americanmorning. facebook.com/americanmorning. we're going to take a quick break and back with much more on "american morning." ello. it's water from the drinking fountain at the mall. [ male announcer ] great tasting tap water can now come from any faucet anywhere. introducing the brita bottle with the filter inside.

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see how affordable an rv vacation can be. visit gorving.com and watch a free video. go affordably. go rving. grounded budget gridlock costing jobs. how unfinished work in washington putting thousands of faa employees out of work. >> sarah palin going all 2008 on president obama. how she defended the tea party from comparison to terrorists. >> one dead, dozens hospitalized in a salmonella outbreak likely

linked to ground turkey. where's the government on this one? >> part cop, part terminator. an officer chases down a suspect who ran him down with a stolen car on this "american morning." >> good morning. it is wednesday, august 3rd. welcome to "american morning." a lot going on this morning so let's get right to it, shall we. >> the debt deal gets the president's signature, passed through the senate with ease. looking at new pictures released from the white house of the closed door negotiations eve eventually led to the compromised bill on the debt ceiling. before signing that bill into law, president obama called it a first step and he argued more must be done. >> this is, however, just the first step. this compromise requires that both parties work together on a larger plan to cut the deficit, which is important for the long-term health of our economy. >> now, it's up to this

so-called super committee, a bipartisan group of six republicans and six democrats, three from the senate, three from the house, their sole responsibility to decide on another $1.5 trillion either in spending cuts or tax increases. something congress and the white house couldn't get done. as mohammed el erian ceo of the investment management firm, pimco, big bond dealers, told our piers morgan last night, the debt deal's done little to soothe economic jitters. >> both the deal and after the deal we are worse off than we were before. everybody knows at the end of the day we haven't improved things but made them worse. >> so depressing. >> i know. like, oh, my gosh. i know what you're wondering now. what will be cut by this so-called super committee and the answer is -- we don't know yet. likely one of the first places they're going to look is the government's pay rolle. we could see thousands of

federal workers cut, as it is they are operating under a two-year pay freeze. the defense department not safe. bracing for its budget potentially to be slashed by $350 billion over the next ten years. >> people have to remember that while we talk about smaller government and some people like the concept of smaller government, it ultimately means fewer government employees. so in an economy where 15 mill reason out of work, going to be more people out of work. >> fewer government services and the part of the budget they're cutting is the part where the services you are more likely to feel are in the little part of the budget, the discretionary spending part. likely a number of government services will be scaled back, like food inspections, highway construction, hurricane tracking, border security, grants for education. we've seen that in higher education there's going to be some changes, special credit would be cut for students who make 12 months of on-time loan payments and graduate students may have to pay interest on loans while in school. the interest doesn't start to

accrue until you graduate, government picks up the tab while in school. >> graduate students usually have jobs and maybe more able to pay. >> it was to save pell grants. >> pell grants. save pell grants for everyone else. >> a good thing. that's how i got through college, pell grants. i couldn't have gone. >> we can't afford the life we live in this country. we can't afford it. you have to figure out where you pull it. >> until you get government cutbacks you don't realize how much government you use. after congress enacted this debt ceiling they left town without ending a stalemate over how to fund the federal aviation administration. apparently this wasn't one of their priorities. it means thousands of workers currently are not being paid. construction projects are on hold and the government is losing millions of dollars in tax revenue. ted roland is live at chicago's o'hare international airport. he's been looking into this. ted, what does this mean, this faa budget not being passed? the funding not being authorized? >> well, basically you said it. it means that there are revenues that the federal government is not getting during this impasse,

during this time where the faa has basically been destabilized, 4,000 jobs right now are furloughed until there's a change and then the construction projects, there are work stoppages put on hundreds of projects going on at airports around the country, meaning an estimated 70,000 construction workers are not at work. we should point out that according to the faa, safety is not an issue. air traffic controllers are paid with a different pot of money and passengers will not feel the impact at airports. tsa also not involved in this. randy babbitt the head of the faa, he is very upset by it. all of this, take a listen to an interview he did with cnn yesterday. >> this can't go on a day longer. much less six weeks longer. we're going to suffer a lot of long-term damage. we have billions of dollars in construction money that should be going out the door, that's not. this is money that's available. it's simply we can't spend it.

>> of course, the big question is, well, how do you solve a problem like this? well, we just happen to run into a passenger this morning at o'hare who has a wonderful idea. take a listen. >> cut your vacation short, get your butt back to washington and figure something out quick. >> there you have it. i don't know that congress is going to cut their vacation short or not. that seems to be one thing they do agree on is they deserve an august recess. at this point, though, ali, a lot of people very frustrated with the fact that they left town without dealing with this issue, which really has been simmering since 2007. >> okay. in fairness to some of these members of congress, a lot of them don't call it vacation. a lot are going on fact finding missions which are important, spending time with their constituents. i don't understand why this wasn't crucial for them to get done. >> they're going on fact-finding missions. >> when they go to afghanistan or iraq. it is the time they can do that. it's important, carol. that's how they actually learn about these things.

later on, i'll be talking to michael goldfash a former faa chief of staff and he talks about possible issues that are coming up. let me ask you this, ted. you told us earlier about people who check the runways and the tarmac, having to do this without still getting paid? can we have ted back on this. we were talking about this question. >> our satellite window ran out. >> all right. >> listen to that woman again. >> amen, sister. >> that's what i like the best. >> the best -- >> ted had a story about the guys who go out and check the tarmac to make sure it's safe, they have -- they're not being paid so they're going out and working and hoping they get paid at some point. >> when lawmakers go on their fact-finding mission they should go to a tarmac -- >> we have to stop calling it vacation. some might take vacation, some might go to the caribbean or shopping. but there are many who do real

work in this time. i don't want to get carried away with saying they're on vacation. >> they have to be in their districts. >> this is a priority. why would you leave without passing this. >> to all of those people who aren't collecting a paycheck and see how they feel about the fact-finding mission. >> i disagree with that, carol. they may not be living up to it but congress people have to get information and this is how they do it. their congressional delegations. i don't think it's fair to call it vacation. >> let's focus on another kind of argument that some people might call silly. tea party republicans up in arms over allegations vice president biden called tea party lawmakers terrorists during the debt ceiling negotiations. now biden's people tell cnn the word was used by several members of congress, democrats, and that the vice president does not believe it's an appropriate term in political discourse but that has not stopped sarah palin from jumping into the fray, appeared on fox suggesting if they were real terrorists, president obama would not have a problem with them. he would actually meet with them. michele bachmann is also raising

money off this terrorist comment. remember back during the 2008 election, sarah palin at least, accused the president of palling around with terrorists, that's what i was mentioning earlier. earlier i spoke to john avalon, a cnn contributor, about why both sides are guilty of this incivility. >> haters are cheap and easy recruiting tool. i think the extremes on each side is each side's worst enemy. before obama derangement syndrome there was bush derangement syndrome. it's becoming a real problem in our politics. terrorists are terrorists. we're on the tenth anniversary of 9/11 coming up. that's unacceptable and should be condemned. both sides treat their own extremes as well. they may be crazy but there are crazies. >> michele bachmann as i said, trying to cash in on the alleged dig by the vice president. in an e-mail to supporters bachmann says the attack is proof she's the top target by democrats and needs immediate financial support. >> a health alert to tell you about this morning. an outbreak of salmonella poisoning has spread to more

than half of the country. it's been linked to ground turkey. the government investigators are still trying to pinpoint the source of the contamination and there's been no recall yet. 26 states are affected. the outbreak blamed for at least one death and 77 illnesses. senior medical correspondent elizabeth cohen is on the phone from atlanta. the big question this morning, why no recall? >> isn't that strange. usually at this point five months into an outbreak, you do have some kind of a recall but apparently they haven't directly linked these illnesses to a specific product or company. they seem to know it's turkey, but they can't seem to be able to say it's this company or, you know, it's this product. and so it's sort of surprising after five months that they don't have that link. >> five months of still a mystery of what it is where it came from. since no recall then for consumers what can we do to make sure what we're buying is safe? >> first of all, as a consumer you have to think about your particular situation. if you're like most people and

you're healthy you can say look, if i get turkey and get sick i will feel sick for a while but it's not going to threaten my life. if you choose to keep eating turkey you need to cook it thoroughly, you don't want to -- if it's frozen don't want to thaw it on your counter. thaw it in the refrigerator. you want to use separate cutting boards for turkey and things like a salad which you're not going to cook. for people who are immune compromised, those people, you know, know who they are, you might want to consider not eating turkey. i mean that is a possibility. you might want to say this is not a risk worth taking, i'm going to avoid ground turkey altogether. >> elizabeth cohen on the phone, thank you so much. comes at a time when we're talking about budget cuts for the discretionary budgets which includes food inspection and food safety and we have a hard time going back to the source of so many things in our globalized food system. it's interesting. interesting to see how it pans out. >> across the country, unrelenting heat still hanging over the nation's midsection. it doesn't look like it's

moving. in parts of the south a look at the live weather map. temperatures could break records in several states today. you can see that sort of purple area in the middle. oklahoma city, dallas is in there, memphis. dallas, ft. worth could break its all-time high temperature of 113 degrees. that's not the heat index. that's not the sun. that's the temperature. 100 degree or more in dallas for 32 straight days. they got a bit of a break, it was 99 degrees at midnight. last night. >> you can't water your grass at 9 9 degrees. it burns up. >> ed lavandera is there for us in dallas. ed, you're used to this kind of heat. you've been there for a long time. this is even hot for dallas? >> welcome to the most miserable place on earth, ali. it is over 90 degrees already. it's just around early morning time. we're in a popular urban walking trail, jogging trail. see a few people out here.

but you know, it is just a miserable time and there are real concerns today that energy use will be so high that there could be rolling blackouts and people losing their air conditioning. >> reporter: in texas, swarms of grasshoppers are invading dried out grass fields. in oklahoma, there's barely enough hay to feed herd of cattle. across these crusty plains, lakes are evaporating, children hibernating, playgrounds silent. triple-digit temperatures have baked texas and oklahoma for more than a month. the summer of 2011 is a beat down of epic proportions. if that sounds dramatic, cnn i-reporter susan newkirk knows these are desperate times. >> we are sweltering and we're just asking for some relief here. >> reporter: this week, dallas/ft. worth could break its all-time high temperature of 113 degrees. in dallas, the heat has killed 12 people so far. in oklahoma, there have been 11

heat-related deaths. all but six of texas's 254 counties are under a burn ban. the heat and dryness continues spawning wild first like this large blaze in tulsa, oklahoma. in san angelo, texas, bacteria that thrives in dry, hot conditions have turned this lake red. even strong decade's old trees are withering under the scorching heat. leaves are turning brown. >> if it loses all its leaves and goes brown, it's done. >> reporter: texas electricity regulators are issuing emergency warnings urging people to conserve power. who needs to power an oven when you have a sizzling car. these tyler, texas, tv reporters baked chocolate chip cookies in just over three hours. >> oh, my god. they're pretty hard. >> apparently good enough to eat. >> reporter: but in miserable times like these, you need to be able to call a timeless superhero. >> anything cold?

>> reporter: the ice cream man. mustapha says the calls for his truck are urgent. >> they used to say, i don't know, in a week or two weeks. but today and the day before yesterday, they say, i want it today. >> much cooler with this. >> not at all. when it's this hot, be it's not a problem. the more colorful the better. >> reporter: the manager of this trucking company said the ice cream man saved the day. >> with the heat the way it's been, our president called and said, maybe we ought to try to do something for some employees, why don't you all get ahold of an ice cream truck, have them take an hour off and feed them as much ice cream as they want. >> reporter: all right. now that -- not that this is any consolation. this isn't the worst this north texas area has seen in terms of heat. back in 1980 the infamous heat wave of 1980, we saw 42 straight days of high temperatures over 100 degrees. if this continues, we'll reach

that mark next friday. guys, back to you. >> wow. >> unbelievable. all right. ed, you don't look that hot. you're doing well at looking cool. keep that up. >> the sun's not out yet. >> already over 100 degrees. >> one more hour and this facade is over. >> oh well. right back in the satellite truck and cranks up the ac. >> we're thinking of all of you in that section of the country right now. >> still to come, israel likes scre screeners at major airports in the u.s. spot terrorists by asking simple questions. details of the latest layer in airport security next. a british cop who cannot be stopped even with a speeding car that rams into this cruiser. how this chase and crash turned out. >> pretty amazing. he threw a pie in rupert murdoch's direction. a british comedian is paying the price. you're watching "american morning." it's 15 minutes past the hour.

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welcome back to "american morning." the deal done, right? everything is hunky dory, right? no. after bickering and a brush with global economic disaster the debt ceiling crisis is over for now.

the president signed that compromised deal into law yesterday leaving a lot of americans wondering what is next. let's ask our guests. we're joined by margaret hoover the great granddaughter of president hoover, served on two presidential campaigns and is the author of "american individualism, how a new generation of conservatives can save the democratic party" and keke mcclain joining us. nice to see both of you. >> good morning. >> i want to talk first with how people feel about congress after all of this. i guess -- i believe that people always say they think congress are spoiled brats and children. we continue to go out and vote over and over again. two new polls says 77% believe congress has acted like spoiled children, only 17% think that they are responsible adults. this is a surprise here and a problem as we go forward with what could be more very difficult discussions and choices to be made about how to

get our debt under control? >> i don't think it's surprising at all. the other thing is the sheer exhaustion from it. aren't you tired because i'm tired from the whole thing. i think that what has to happen now is that to waist more energy on deconstruction on what happened in the past we have to focus on the execution of this plan, as unhappy as some of us may be with elements of it and it's time to get focused on jobs. we've got to balance what these cuts are doing with job creation. i think that's the best thing that congress can do, not only to actually do the job they were asked to do but earn the respect back of the people that have voted for them in the past. you know, one of the worst things we can do is to get into more finger pointing and looking only at each person's election and keep throwing the buns out but don't get solutions. >> i'll take your point. we won't talk abe the poll that 72% shows them as disgusting,

stupid, and frustrating. >> all of the above. >> that may be true and i appreciate where the american people are coming from. let's remember consistently for the last five years, congress's approval rating has hovered around 25%. >> around lawyers and journalists i think. >> it shouldn't be a surprise to us 75% of the american people think the process is nuts. >> it's not, but the fact that it's gone on for five years doesn't make it okay. it means we haven't been delivering the kinds of solutions that country needs and that's why they're doing it. >> i would argue we finally did. >> let's go forward then. we have this super committee that's got to make decisions. and there are -- debt experts i talk to who are very concerned they won't be able to do it will trigger across-the-board cuts that could be painful, the medicare program and also for the military. do you think that now, with an up and down vote, these people can make this decision, the house and -- we could vote for it and say look it's not our fault. will there be tax increases in there. >> there's the joke there's the

camel that's the horse made by committee. committees have also worked in our recent history. bowles simpson was a committee and they were laughed off in the beginning. not taken seriously and came back to the table with a serious proposal. unfortunately, the president didn't embrace that proposal. might have gotten an up and down vote. here's the problem. they've built in incentives not to do their job. if democrats don't do their job they will have serious cuts in entitlements. if republicans don't, they will have them coming saying we cannot afford these severe cuts in defense spending. they have built in a mechanism for their failure which neither party can stomach. >> here's the deal. what has to happen on this super committee they have to put their own personal political gain to the side and focus on the public solutions. and, in fact, in the makeup of this committee it would be wise of leadership to think about people who maybe don't have a re-election to worry about. >> are there tax hikes in there?

>> i think that they have to look -- i have always been for a balanced approach, everything has to be on the table and at the table. that's what's disappointing about what's happened before. we needed a deal because we did have to avert disaster but at this point in the game, this is about solutions and not political wins and that's what it needs to be. >> at this point in the game. i think it's like the bottom of the third on the debt talk really. honestly, bottom of the third inning. we have a lot going on, especially -- >> we've got to deal with that because here's the deal, think about all the hours that we've lost, all the days we've lost, not focusing on job creation and these two are linked. they have to be done right and well together. here we are languishing in this recession and not focused on jobs and that's what this committee has to do. they've got to remove the road block. >> margaret hoover and keke mcclain, we'll get you back soon. love the back. back to you. >> still to come on "american morning," an 11th hour arrest in the u.k. phone hacking scandal

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minding your business this morning. u.s. markets took a nose dive yesterday.

the dow, nasdaq, s&p 500 dropped more than 2% to close out the day. a weak report on kunl consumer spending pushed stocks lower across the board even after president obama signed the bill to raise the nation's debt ceiling. credit rating agency fitch confirmed america's aaa rating after the debt ceiling bill was signed, moody's did too but lowered its outlook on debt to negative. investors holding their breath for the third major player standard & poor's to pipe in. they are not commenting yet on the u.s. debt deal. right now u.s. stock futures are trading higher. that's because america has officially avoided default with the new bill, at least for now. and retained its aaa credit rating. investors getting a boost from corporate earnings out this morning. comcast reported its earnings beat wall street expectations. dunkin' brand released its earnings report since its knockout ipo. clorox, master card and cnn's parent company time warner expected to release earnings before the markets open.

investors sorting through more economic reports today. new data on the number of jobs created in july, factory orders in june and information on the services sector come out this morning. wall street still nervous about the big jobs report that comes out on friday. "american morning" will be right back after the break. ♪ ♪ ♪ ♪ introducing purina one beyond a new food for your cat or dog.

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thousands without a paycheck. we'll break down the gridlock on this "american morning." good morning to you. it is wednesday, august 3rd. welcome to "american morning." >> yeah. a lot going on this morning. i mean, the debt deal is done but it is not done. here are your top stories after months of backdoor meetings and partisan bickering president obama signed the debt ceiling deal into law. new behind-the-scenes pictures of negotiations into cnn. now a super committee of 12 lawmakers will be appointed. their task, slashing $1.5 trillion from the federal budget deficit. former egyptian president hosni mubarak and his two sons on trial this morning, pleading not guilty to corruption and murder charges. they could get the death penalty. another arrest in the u.k. phone hacking scandal. stewart cutner the managing editor of "the news of the

world" tabloid reportedly booked and integrated by police yesterday. the 11th arrest by police in this case. president obama ending the debt ceiling crisis for now by signing a compromised bill into law yesterday. it's a deal no one seems to like. after a big sell-off on wall street yesterday global markets sinking too. anders stevens live in hong kong. what you're seeing overseas is an extension of that ugly day here yesterday, isn't it? >> yeah. absolutely, christine. it's nothing to do anymore really, about the debt crisis and debt ceiling in the u.s. here in asia and europe at the moment they're focusing right back on the real economy, the fundamentals and there's a daunting realization if you like that things really are much sicker globally than many investors have been thinking. you only have to look at the u.s. numbers which you've been talking about and that consumer spending number out didn't help things. here in asia, there's always been china as the bright star.

chinas the growth engine. the chinese economy is slowing. your viewers don't know china really is starting to slow down. still 7%, 8%, stellar by u.s. levels but still actually not looking so strong in china and then, of course, you've got what's going on in europe as well. italy, perhaps, being dragged into the debt story. italy is the third biggest economy in europe so that is a real issue as well. you add all that together and you're getting this negativity. hong kong, tokyo, down 2%, the european markets down around 1%. certainly continues. a lot of eyes watching those futures to see whether they'll hold that to positive ground in the u.s. for the open. >> i argue it's going to be an unpredictable week because friday is the jobs report and we don't think it's going to show a lot of jobs growth. the debt deal is done and now the focus on a weak u.s. economy. thanks so much, andrew. the freshest casualty of political fighting in washington. some 4,000 aviation workers who are being furloughed because the house left for its summer

vacation before resolving a spending standoff over the funds the funding for the faa. at a time when government cutbacks on spending and debt talk are dominating the headlines the feds are bleeding money at a rate of $25 million a day from lost airline passenger tax revenue. there are 70,000 construction workers who are out of work as new construction has been halted and all of this is making faa administrator randy babbitt a very unhappy man. >> this is peak building season right now. this is when you don't -- you don't pour concrete in january. you do your construction work now. this is peak season and we're losing that. we have literally 70,000 construction workers that will be put out of work. 200 stop work orders and that list will grow. want to talk about the stalemate over the funding for the faa. joining me live from washington, former chief of staff michael gold fash. thank you for joining us.

>> my pleasure. >> i've seen the stuff you've been saying in the media and i know the secretary of transportation, ray lahood, is burning mad at congress. but only have i heard from you there might be a safety issue. we're hearing everything else is safe. tell me what you're thinking. >> certainly it's safe today, the safest it's been due to the hard work of thousands of faa people many going without paychecks to keep it safe. what cliff are we approaching. one thing knowing august 2nd is a deadline understanding the implications but your earlier reporter mentioned faa is destabilized. who wants a destabilized faa, an aviation worker worried about a paycheck. also's the end of this resolution and as it begins to affect safety that becomes a more dangerous time. >> tell me what the complicated part is. most people would have thought this is a fairly routine thing and there have been extensions to the funding in the past. why did this get bogged down in this? >> over ideology.

on some issues which in the grand scheme of things not only are they minor but very small fiscal impact. there's a subsidy for rural areas and when aviation was deregulated in 1978, the deal was that the big carriers would not go into small rural communities so that we'd have a subsidy. we're fighting now over several small rural communities subsidies of about $16 million. so we're losing $25 million to $30 million a day of uncollected tax revenues, $200 million a week, $1.2 billion by the time congress comes back over a $16 million subsidy difference. >> that's where ideology has come into play. we were talking to ted rowlands at o'hare this morning and he was saying that some of the inspectors who deal with safety on the runway and tarmac at the air traffic control towers some of these people are not being paid but showing up for work. >> when you say is it safe? absolutely. it's a relative concept. we talk about margins of safety.

give you an example, when we used to find a frayed seat belt on the airline, people would say what does that have to do with the safety of flight. if that frayed seat belt reflects poor maintenance it has everything to do with it. these safety inspectors at the airfield they're looking at radars, at runway incursion problems in the past, technicians are adjusting and fine tuning the navigational aids throughout the system. that's how you begin to erode those safety margins and that's where the concern is. not getting on a plane today is it safe, absolutely. going forward, where's the resolution to this. >> it's the way that our food inspection, regulation was sort of whittled away over time and now we wonder why we have so many instances of salmonella and food poisoning. over years it wasn't unsafe in the moment but got unsafe over time. >> that's the great point. with aviation, it's accidents are so rare, thankful, but always a series of things that come together and this is the

problem when all these things -- we don't want the agency worried about its paycheck. we want the agency worried about its mission. >> have you heard of this business, people paying for things on their own and hoping they will be reimbursed when the funding comes through. >> about 40 of the airport safety inspectors have been asked to voluntarily make their own travel arrangements on velocity.com, get their own tickets and pay their salaries. that's a temporary thing. what do you do in september and october when mortgages a s ars ? in this country you would think a well-funded faa is what everybody would want regardless of what side of the aisles they're on. >> michael, thanks, good to talk to you. the former chief of staff of the faa. >> my pleasure. >> tough times for people living in central falls, rhode island. the city of 19,000 which is north of providence was forced to file for bankruptcy after failing to get police and firefighter retirees to give up half their pensions.

and we first told you about this story yesterday. the town may sound familiar to you. the town where the school system had to fire its staff of teachers. mary snow is in central falls. is there any possible resolution to this? >> it's pretty grim, carol. the one thing that is being talked about right now is whether the city merge with other cities to kind of merge their services. people here are so worried, but they're not surprised. you mentioned the school systems. the school system was taken over by the state, libraries in the city are only open because volunteers are operating them. and now, the police force, for instance, faces cuts of 40%. people are worried about the crime rate, particularly small business owners, one of whom said he was recently robbed. >> somebody break in and steal, you know, cell phones, about three or four computers.

i don't know what happened. the police is not on the streets. who takes, you know, care about us? >> they won't be here in time. i will have to wait a while before they get here. >> reporter: carol, central falls is the smallest city in rhode island, but it has an $80 million pension liability and there's a lot of concern that other cities and towns in rhode island may follow suit because their pension systems are so deep in the red. it's also a worry on the state level. the treasurer has been tasked with pension reform, found $7 billion in the small state, and unfunded pension liability and she says that central falls should be a warning sign. >> nobody wants to make the tough choices. central falls proves that. these choices will be made for you. if you don't act quickly enough, consequences will be devastating and so as hard as this is now for me, for the governor, for

union leaders to come to the table to fix it, it is much easier to fix it now than when you are on the brink of bankruptcy. >> reporter: the battle over pensions in the state is only heating up. this fall, there's expected to be legislative action calling for reform statewide. carol? >> such a familiar frame all across the country. thanks so much. >> still to come this morning, a warning to expecting moms, stay away from microwaves. a study warning they could increase the chances their babies develop a major disease. >> looking for terrorist tells. screeners asking questions that could raise red flags at airports. details of the latest layer of security coming to one major airport today.

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and welcome back to "american morning." six months ago he was living in a palace, this morning former egyptian president hosni mubarak is lying on a stretcher with oxygen inside a steel cage in a cairo courtroom. >> unbelievable. zain verjee is live in london part of our team that's covering

this. a remarkable and historic moment, zain. a stunning fall from grace. tell us what's been happening so far? >> it was absolutely unbelievable, unthinkable to see these images today from a man that so many thought was untouchable. he ruled egypt with an iron fist for about 30 years and today, we saw him behind those iron bars lying in a stretcher wearing a white prison suit with two of his sons standing next to him. alaa and gamal. had he's being charged with corruption and the murder of about 800 protesters during the uprising that happened a little bit earlier this year. the court was in session. now it's going to be kind of hard, many analysts say, to prove some of the charges against him basically what they need to look for is to figure out who gave the orders to kill this -- these people, does hosni mubarak assume command responsibility. he says he's not guilty. he's facing the death penalty, but many experts say that he won't -- that probably won't go

down, but this is so dramatic, all of egypt is gripped by this and the rest of the arab world too, because they're not used to seeing their strong man, their war heros, their presidents like that. >> some people think he's faking it. >> yeah. >> yeah. there is a lot of question about his health. there were rumors that his cancer was resurgent, that he was in a coma, he's been depressed, doesn't want to eat, but the health minister actually ruled that he was just fine enough to stand trial and so they just wheeled him in, they got him on a plane from sharm el sheikh, which is where he was being detained at a hospital and they took him by helicopter to cairo, and then drove him up, escorted by a heavy military security to this trial. so they think it's -- he's fine enough to stand. for egypt, too, guys, i mean, a lot of people see this as retribution for a man who ran egypt in a corrupt way, who

tortured his opponents. there was no freedom of speech under him. there is a division because there are also others in the country that say, well, we had a great period of stability under hosni mubarak. he kept the peace with israel. he kept good relations with the west. so, there's a big divide on this trial. some think it's gone too far, some think it's not gone far enough. >> israel, what seems to be a shift or softening in prime minister benjamin netanyahu's stance on what they'll negotiate to get -- to get peace with palestine and the establishment of a palestinian state. what's the latest on that? >> yeah. remember when president obama said look, you know, let's use pre-1967 borders as a starting point and netanyahu said no way. seems like there's a u-turn. he's saying okay, let's talk about it. and the u.s. and israel, according to reports, have been trying to put forward a strategy to move forward with the peace process. palestinians are saying this is a publicity stunt.

this whole idea is totally valueless, one official say. a maneuver by israel. what the palestinians want is to go to the u.n. general assembly in september and ask for a unilateral palestinian state, to be recognized. so that's the situation. don't know where it will go. >> part of the deal to recognize palestinian state with those borders would be that they don't do that. that's one of the things netanyahu has been saying, don't go to the u.n., don't ask for unilateral recognition. >> exactly. >> still to come this morning, could be hottest day of the year, hottest day of any year in some places today. we're going live to dallas next hour. 32 days in a row of temperatures above 100 degrees. deadly heat wave hanging over texas in the south. >> and how to save money in the tough economic times. the popular personal finance guy from hln, clark howard, will be here live with tips you do not want to miss. you're watching "american morning." it's 48 minutes past the hour.

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a lot going on this morning. here's what you need to know today. unfinished business in washington costing jobs. the senate went on summer recess without taking action to fully fund the faa. that means 4,000 furloughed workers will remain jobless for the next five weeks. a new layer of security being tried out today at boston's logan's airport. it's a behavorial program. they'll strike up conversations asking simple questions like where are you headed. this is to spot suspicious behavior. moody's says it will keep its topnotch aaa rating but the firm is warning downgrades are possible if washington doesn't do more to get its spending under control. a warning this morning to pregnant women. stay away from microwave ovens.

time magazine reports on a new study. women exposed to devices with electronic fields are more than three times as likely to have a child with asthma. they're preparing to build the world's taeflt tower. the family, which, of course, disowned osama bin laden years ago owns one of the largest construction companiy companies. leo dicaprio is the heist paid actor. and it was 20 years ago today when rock went to plaid. the lollapalooza festival celebrates its 20th anniversary in chicago this weekend. sit possible? it had nine bands back in 1991. there are more than 130 featured this year. you're caught up on the day's headlines. american morn back in 60

seconds.

welcome back to "american morning." here's what is happening this wednesday. eight years after the space shuttle "columbia" disaster, part of the shuttle turned up in the lake in texas. it was discovered as this lakebed dried up. nasa said it was a tank that was used to provide water and power for shuttle missions. "columbia" broke apart when it came back killing all seven onboard. this all unfolded live during the "john king, usa"

show. he jumped the white house fence with a backpack. as you can see, he was quickly apprehended at gunpoint. the man who threw a shaving foam pie at rupert murdoch, well, he's getting jail time. jonathan may-bowles is getting sentenced to six weeks. he pleaded guilty. he threw a pie as the media mogul testified before lawmakers. he's moving up to the east side but now a peacock who flew from the central park zoo is back home again. he spent two or three hours perched on the ledge of a high-rise. it appears he had enough and he flew back across the road to his real home. >> local stations went live all day because that pea come was sitting up on that window. it was bizarre. i love that story. you don't want to cross the bridge. a police officer nearly got

killed last month when a man in a stolen car smashed into his cruiser. it sent him flying ten feet into the air. then officer pascoe bounced to his feet, chased down the fleeing car thief and tasered him before he collapsed from his injuries. he's oklahoma now but the suspect is behind bars. >> you're watching "american morning." 56 minutes after the hour. when you're on the road to recovery. proper nutrition can help you get back on your feet. three out of four doctors recommend the ensure brand for extra nutrition. ensure clinical strength has revigor and thirteen grams of protein to protect, preserve, and promote muscle health. and immune balance to help support your immune system. ensure clinical strength... helping you to bounce back. ensure! nutrition in charge! yoo-hoo. hello. it's water from the drinking fountain at the mall.

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worked markets tumble. i'm christine romans. the markets being marked down. portfolios are heading south but they could be flirting with a second recession. good morning to you. i'm carol costello. they never thought they'd see this. he's facing the death penalty. we'll take you live in just a moment. i'm ali velshi. it could be the hottest day of the year across the south. the unrelenting heat wave claiming more lives and drying

up entire lakes on this "american morning." -- captions by vitac -- www.vitac.com et. good morning, everyone. it's wednesday, august 3rd. futures are up here in the u.s. an we've had a long losing streak. you can hear my cold in the third hour of the show. sorry about that. it looks like things could be looking up. >> like the dow -- like you it's fighting it off. it's had eight days of losing streaks it's true. >> it still need as big dose of medicine. >> it does. >> let's talk about the stocks because they're taking a hit right now. the dow closed down by more than 260 points yesterday. the overseas market picking up where wall street left off yesterday and it's all because the debt deal really does nothing for the underlying economic problems like, oh, let's say unemployment. japan's nikkei and hong kong hang seng both closed down about

2%. and in london where trading is currently under way, the ftse is down. >> futures are up suggesting that when the u.s. opens at 9:30 eastern time, you'd see -- >> you know, in the last two days, we've seen quick turnarounds. we've seen the market -- >> the fridays jobs report is the most important thing. a lot of people keep asking, if we got the debt deal, why aren't the stocks going up? no one said if you didn't do this things wouldn't be great -- >> it's not over, right? they don't know what's to come because they have to put together the super committee. >> if you're waiting for somebody, you normally have an outcome. >> the gridlock that continues to grip the nation's capital means that a number of things, important things did not get resolved. one of them is the funding for the federal aviation association whichmeans that thousands of workers are not being pachld construction workers having to do with the faa are on hold.

the government is losing millions of dollars in tax revenue a day. earlier i spoke with michael gold fash, the former faa chief of staff about moving forward. this could, could become a safety issue. >> these safety inspectors at the airfield. they're looking at radar, runway problems in the past, the technicians are adjusting and fine-tuning the navigational aids throughout the system. that's how you begin to erode the safety margins. not getting on a plane today, is it safe? absolutely. going forward, where's the resolution to this. >> michael goldfarb goes on to say there are about 40,000 inspectors are working without pay to make sure that flying is safe. a 12-person super committee has to be appointed. a fine consensus. six democrats and six republicans are going to be asked to agree on, oh, just a mere $1.5 trillion in additional

spending cuts. earlier we asked a democrat strategist and conservative author margaret hoover. we asked about the challenges that this committee will face. >> they've built in incentives to not do their job. if democrats don't do their jobs on this, they're going to have serious entitlements. so they have built in a mechanism for their own failure, which i think neither party can stomach. >> what has to happen on the super committee is they have to put their own personal gain to the side and focus on the public solutions. in fact, in the makeup of this committee, it would be wise for leadership to think about people who don't have a re-election to worry about. >> what about the gang of six? >> a lot of people thought about it. >> they must come up with those recommendations for more budget

cuts by late november. it's up to congress to pass their plan without changes or run the risk of deep cuts to programs that are important to both partds. you know, medicare funding for the democrats and the defense spending for the republicans. >> they should have t-shirts and be all around and tell people how they're going to get it done as opposed to all of us -- by the way, those airport -- the 40 people working, i'd love to get their picture, put it up on the wall to show everybody who complains about it. here are 40 people working without pay. >> because they know what they have do. >> a lot of people around the country do that and i think that's very impressive. >> i like that t-shirt idea. >> super committee. >> let's make cut 1ting $1.5 trillion fun. >> let's talk about the big story of the day. who do you trust to create jobs? president obama assured americans we can. >> in the coming months, i'll continue also to fight for what

the american people care most about, new jobs, higher wages, and faster economic growth. >> the president wants to grant loans to private companies so they'll hire people to work on the country's roads and bridges. republicans want to cut spending and they don't want to raise taxes or eliminate any tax braj. a deal most economists say will not spur job growth. republicans argue it's too soon to tell. we do know this. most big companies are not hiring. they're actually laying off workers even though they continue to sit on piles of money. cnn money.com did some digging and here's what they found. since january 2010. businesses with 500 or more employees have lost 29,000 jobs. but get this? small businesses are hiring. they've added nearly 2 million jobs, and they're not sitting on piles of money, not like the big guys. the big guys are sitting on $1.5 trillion cash despite the fact that president obama created a

commission to convince ceos to spend some of that money on hiring. so the talk of the question today, who do you trust to create jobs. >> send your question to facebook.com/americanmorning. we'll read your comments later this hour. history is being written in the middle east right now. a few hours ago in cairo, hosni mubarak arrived in court along with his two sons to face murder and corruption charges and they're pleading not guilty. >> what a surreal scene. there he was, lying on a gurney inside a cage in the courtroom with an oxygen tank to breathe. this is a man who always was strong and in charge and almost princely. >> i talked to a journalist. she said, it's weird. he's still dying his hair.

he's lying on a gurney with oxygen but he's still dying his hair. >> there he is allowing himself to be shown like this to perhaps win support. >> let's talk with someone who knows who's been inside the court. what is the latest with this trial? >> reporter: well, the trial just a few moments ago, we have heard from the judge that the trial, as far as hosni mubarak, he returned. but tomorrow the trial will continue for the former interior minister and his right-hand men who are also being tried today. being outside of the courtroom all day, it's been quite surreal. people who are out here, whether they support mubarak or whether they're against mubarak are really shocked that this day has actually finally come and that the former egyptian president who ruled the country with an iron fist for 30 years is

actually hi in that courtroom in that cage, the defendant wearing the uniform of a prisoner. that is sew shocking to the people of egypt, the people that we've spoken to today wlrks they're supporters or against mubarak. we've also spoken to a lot of family members of victims of the revolution, protesters who were killed. they're quite angry. many of them were here, said they were denied entry and they said they want blood. mothers who lost their children said they couldn't believe that this day had come, that in the past that they had even dreamed that mubarak would be in a court of law some day, that he would actually be tried. there's a security presence in the streets of cairo. there's a clash outside the court between different factions. but people, even though they're watching and riveted to the big screen, they're just shocked that it's actually happening

right now. >> mohammed jamjoom reporting live from cairo. we'll let you get back to work. i'm sure there will be more live developments throughout the day. even though there were hundreds of police officers, they could not keep control. >> it's interesting. ali? >> it really has been a breathtaking year in the middle east, leaders overthrown, citizen uprisings, a whole lot of bloodshed. now comes word of a possible breakthrough that could lead to peace talks. we're joining by james rubin. former assistant secretary of state, now executive editor of "the bloomberg view." james, good morning. let me ask you. they're going through historic moments right now. one we saw from mohammed jamjoom. remarkable what's going on in syria. we'll talk about syria in a second. but now we hear talk that perhaps benjamin netanyahu is

prepared to do something that just months ago he said in the white house would not be done, negotiating about borders that go back to 1967 and earlier in a deal with the palestinians. >> well, yes. it does show you that theatrical elements of the middle east peace process. benjamin netanyahu came before congress as loudly as he could, got congressional applause saying i'll never, ever, ever go back to '67. but he's got a bigger problem. the u.s. has said it will support israel and united nations but the palestinians are threatening to take their case to the u.n. where the united states would be alone in supporting israel. so netanyahu is looking for a way out and the way he has seen to come up with is to try to convince the palestinians that now he's serious about negotiating on the basis of the '67 borders. >> if they don't go to the u.n. and ask for recognition of the state. give me the nuance behind that.

what's the issue? >> the issue is the israelis do not want to seal the whole world recognize the palestinian entity that's now in existence as a formal state and force the united states to veto it and the security council. but it would be a major -- as the current defense minister said, it would be a diplomatic tsunami. this would be a disaster for israel. so he's looking for a way out. and the way he seems to be pushing right now is what if i can convince the palestinians to negotiation, and if they're at the negotiating table they wouldn't take this issue to the u.n. i think it's a tough sell because the palestinians are criticizing this suggestion because they don't believe that it will yield an actually peace agreement. >> right. they believe it will mean they won't ask for recognition and status quo prevails. are those two unreasonable requests that they're making? don't go to the u.n. and ask for recognition unilaterally and you have to ak phenomenal and accept

and do everybody. >> absolutely not. they're very reasonable. the problem here is the issue that isn't being discussed is the united states and the whole world has asked israel while these negotiations are going on, stop building settlements that are creating new facts on the ground. that's the underlying issue. as lock as israel keeps building the settlements, the palestinians are saying the negotiations are really just a way to waste time while the israeli's build on the ground. the israelis are obviously making a step forward, if he's prepared to negotiate it on the basis of '67, but we're so far from the kind of good will that would be necessary for netanyahu and an american president to sit down and imagine a peace agreement that i think that's why people are so skeptical. >> and it's going be a hard sell on the ground for netanyahu on the ground as well? >> absolutely. there are plenty of israelis who don't want to, as they say, give

an inch to the palestinians. they don't want to stop building settlements. they don't want to negotiate an agreement that would perhaps share jerusalem as the capital of two states. netanyahu is looking, as he often does, for a device, a diplomatic method to get it away from united nations. >> a positive movement or -- >> it's a plus, but i don't thinkite going solve the problem. >> good to see you as always. carol? coming up next, the hottest month ever in oklahoma. we mean hot. brutally hot. there's now a drought in oklahoma and no signs of rain in the forecast. we're going to take you down south live. >> welcome to the warmest place in the world, seitz hot. >> just because of the weather. we'll give you one week to fix your finances.

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katy perry is sensible for this. the song is "e.t." it's so hot we might be on another planet. >> unrelenting heat. >> she's had nine number one hits in a row or something so whatever katy perry does -- >> still hanging over the midsection of course, all this heat, and really it's just ugly. dallas could break its all-time

high, 113 degrees. it's been over 100 degrees for 32 straight highs and record highs could be shattered across the rest of the country. ed lavandera is live for us. >> he's wearing mesh. >> reporter: earlier i said this was the worst place in the world. i'm just going go with this theme of trying to be as overly dramatic as possible. it probably wasn't real. welcome to the sun. it is really scorching hot. we're on a popular bike trail here in dallas. in a few hours i don't think you want to be anywhere close to this place. in texas, swarms of grasshoppers are invading dried out grass fields. in oklahoma there's barely enough hay to feed herds of

cattle. across these crusty plains lakes are ee van rating, children can hibernate, playgrounds are silent. triple-digit temperatures have baked texas and oklahoma for more than a month. the sum over 2011 is a beatdown of epic proportions. if that sounds dramatic, cnn ireporter suzanne new kirk knows thee are desperate times. >> we are just sweltering and we're asking for some relief here. >> reporter: this week dallas could break its all-time high temperature of 13 degrees. in dallas the heat has killed 12 people so far. in oklahoma, there have been 11 heat-related deaths. all but six of texas's 256 counties are under a burn ban. it's continued spurning wildfires. in san angelo, texas, bacteria that thrives in hot conditions have turned this lake red.

even strong decades-old trees are withering under the scorching heat. leaves are turning brown. >> if it loses all its leaves or they go totally brown, it's gone. >> reporter: they're offering up emergency warnings. who needs to power up on oven when you've got a car. they baked chocolate chip cookies in just over three hours. >> they're pretty hard. >> apparently good enough to eat. in miserable times like this, you need to be able to call a timeless superhero. the ice cream man. mustafa says the calls for his truck are urgent. >> they used to say i may want it in a week or maybe two week, but today and the day before yesterday, they said, i want it today. >> i'm not ashamed. not at all. when it's this hot, it's not a problem. the more colorful, the better.

>> reporter: the manager of this dallas trucking company says the ice cream man saved the day. >> with the heat the way it's been, our president called and said maybe we ought to try and do something for some employees, why don't you all get ahold of an ice cream truck, have him take an hour off and feed them as much ice cream as they want. >> reporter: now one of the real concerns today, guys, is keeping the air conditioning on. state regulators here in texas say that is a concern. they're concerned there could be rolling blackouts and power outages across the state because of the demand on air conditioning. >> you know what? that happened in maryland. they went through intense heat. they had blackouts. some people didn't have air conditioning for six or seven hours. it was awful. >> yeah. >> we'll keep checking in with you. thanks very much.

bonnie schneider. sorry. we cut ed off. >> get back in the satellite truck and get cool. >> bonnie schneider is in an air conditioned place, extreme weather center, where she's watching all that and the storm that's developing in the caribbean. what are you looking at, bonnie? >> well, ali, we're starting off with the heat. the heat advisory stretched well into the deep south. it's as far north as st. louis. we'll be seeing temperatures climbing to the triple digits and likely shattering records. some of these records are soaring above. look at ft. smith climbing possibly up to 113. the record, 107. the water temperature is certainly warm enough for the tropical season to start to heat up. that's why we have tropical storm emily. the latest advisory has maximum winds at 50 miles an hour. the storm is southeast of san domin domingo. because of that there's a new warning for parts of the bahamas.

that mean we could see tropical storm conditions for 48 hours. the time now is to prepare and make sure you're prepared for a tropical storm. heavy rainfall possibly in some areas. ten inches. that makes it very dangers in terms of mud slides. and the track takes the storm likely across much of the southeast coast. unfortunately it looks like we're going to be lasting for days as we go into the weekend. if you live anywhere on the eastern seaboard, you have to monitor it. >> to be clear, bonnie, it hasn't been called anything yet. there's no storm, watch, anything to the u.s. >> not for the u.s. but as we go through the next few days, you should be aware of that. >> i'm asking their if travelers. if you call up to ask for a change in flight, they may say, we don't have any warnings. . new number one highest paid hollywood actor. mine was earned over the south pacific in 1943. vietnam, 1967. i got mine in iraq, 2003.

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27 minutes after the hour. minding your business. right now u.s. stock futures are trading higher. it's been the case a lot this week. it hasn't ended the day that way. we'll see what happens today. investors are getting a boost out of the passage of the debt ceiling bill, but markets took a big, big hit yesterday. if they close down again that will be the longest losing streak in over 30 years. there's been a lot of talk about the ratings agencies. one ratings agency in china has downgraded america to a single a. they say it was inevitable.

a new report from payroll processor adp says 114,000 jobs were add to the private sector in july. but they're much more focused the big jobs report from the government that comes out on friday that. takes into account losses from the public sector, which usually bring the number mum lower. later today, new factory orders in june and new information on the services sector comes out as well. and leo dicaprio topping the list for highest paid ak tofrmt he earn $177 million in one year knocking johnny depp from the spochlt johnny depp made $50 million. adam sandler at $40 million. will smith at $36 million and tom hanks at $35 million. coming up, how to improve your finances in just one week. "american morning" back after the break. what if we turned trash into surfboards? whatever your what if is, the new sprint biz 360 has custom solutions to make it happen,

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good morning, new york city. it is fair, 74 degrees right now. thunder showers though. forecast later, about 82 degrees. hey, let's not talk about thunder showers. let's talk about bright skies and your own personal finances. investors turn their attention to another pressing problem, the economy. right now futures are up, but, boy, did the markets take a big hit yesterday. the dow is down more than 265 points. the s&p is down for the year. because the hits keep on coming like a drop in consumer confidence. so what can you do to boost the confidence in your own finances. what do you possibly have control of because you don't have control over all that. joining me now, clark howard is the host of "the clark howard show" on our sister network hln. he's the hln money expert. he's also the author of "clark howard's living large in lean times." he's got tips to help us improve our finances in one week. believe me, you're going to be

talk about them. i've done a couple of them. let's take a look at the first one. switch to internet phone service, clark says. you can save a lot of money. tell me about saving money on this. >> i've been using this for years, probably four years. and ooma is fantastic. consumer report rated it as the best phone service in america. you buy a ooma box and you have free unlimited long distance, voice mail, the whole shebang. it's replacement phone service for the monopoly local phone company. >> there you go. >> you pay about 30 buck as year in fcc pass throughs, but that's it. >> we'll look at that. switching internet phone service. buy your eyeglasses online. i dud this. you did that? >> these are -- >> the pair i liked were actually $19.95. >> that much? >> yes. >> come on. >> this is a website you can go

to. you can buy the glasses for $7 a pair. >> prescription eyeglasses. actually zinea has multiple competitors. >> i saw hundreds of styles. >> there are so many companies selling prescription glasses for $10, $15. frames, lenses, complete. >> you get your prescription from your eye doctor. make sure you ask for your pd. pup larry condition. >> can i have my husband take a tape measure and do it myself. >> you can. i'd rather have the doctor do it. >> stock up on the sunday paper. if you get three copies of the sunday paper, that's three times the coupons. >> exactly. so many times there'll be a coupon on the front and back. you want both sides but you can only redeem one. you want two copies of the paper. the great thing with three is so many items that are such a steal

with sunday coupons you want to get multiples. so this will pay back over and over again. now, you're hurting the tree as little but you're going to save a lot of money. >> you can also watch the things at your neighbor's house. >> this cute picture you have here, never go by the picture on a coupon. always read the details because a lot of times they're pushing a particular item but the coupon's good on other items as well. >> these good advice. make razors last a year. >> how cleanly do i look shaved? >> you look cleanly shaved. a year, the same razor. >> the last razor lasted a year. i paid 17 cents. you dry it after you use it each time because razors don't degrade from shaving. they degrade from moisture. even if you use the most expensive blade out there, if you dry it after every yeause,

will last a year, or at least three months. >> here's the secret. a lot of credit cards extend the manufactur manufacturer's warranty automatically up to one year for free. so never buy this garbage. >> this is a revenue stream for the company. >> exactly. huge profit margins. all it does is hurt you, saves them. >> thank yu. there are 250 in here. if you feel like you can't control the dow, the debt ceiling, anything else, there are things in here. it was really nice to meet you. thanks for coming onboard i was taking notes. >> i was thinking i never buy the extended warranty because i'm irresponsible and now i find out i'm fiscally responsible. yeah. coming up next, have you seen this video? it's a must-see. a police officer is flung into

the air like a rag doll when a car plows into him at full speed. he gets up, chases the guy down, a real life robocop. >> when we come back. plus he's walking the walk to celebrate his citizen "showbiz flashpoint," a guatamalan immigrant is walking from new york to lance. i spoke to him when he took off on the fourth of july? what's it been like? he's live with us next. it's 30 minutes after the hour. [ male announcer ] this is the network. a network of possibilities.

excuse me? my grandfather was born in this village. [ automated voice speaks foreign language ] [ male announcer ] in here, everyone speaks the same language. ♪ in here, forklifts drive themselves. no, he doesn't have it. yeah, we'll look on that. [ male announcer ] in here, friends leave you messages written in the air. that's it right there. [ male announcer ] it's the at&t network. and what's possible in here is almost impossible to say.

another brilliant song for a hot day. >> i kind of like the other lyrics it's a family show. we're not going to say the real stuff. >> let's meet dan pascoe instead, shall we? he may be the most dedicated police officers in all of britain. >> if you happen to be listening and walking aurngd stop and look at your tv set. >> quit eating your eggs and watch this. >> he was getting out of the car on the right seed.

you see that car? a man in a bmw, he slams through the back of the vehicle. it sent him flying about ten feet in the air. >> he gets up after being flung. look at him on the right side. you'll see him get out. he gets out. he goes flying. >> i think his adrenaline kicked in and he got up and started running after the suspect, which would be his job. >> he said it was police officer instincts. >> exactly. >> this is what he said about why he was chasing down the suspect after being hit. >> i got back up onto my feet, i thinking, i'm slightly better off than i thought i was, so i went back into police mode rather than sort of normal people road and figured it was time to put someone under arest rather than put more people under in danger. he ran down and tried to climb a fence. it was at that point i tasered

him in the back. >> he was tasered, baby. he was apprehended. he's probably in custody. for the police officer, no serious injuries but he collapsed shortly after arresting the guy. >> after he did it all. >> it was amazing. >> wow. >> so he's doing okay this morning and good for him. a real life robocop. >> 23 months behind bars for that one. file this one under "message sent." >> what? yeah. this is an eastern european mayor. he's had it with cars blocking. he's fixed the problem by jumping in a tank and crushing the car. it's always the rich people who do these sort of things. he said he's ready to do ittet for real if anyone dares to park in a bike lane. >> that will make you thing twice. >> i love that mayor.

>> all right. this -- this story is really fun. it's fun, it's inspiring. this guy i'm going to talk to is a month in his walk across america literally. he said his goal is to meet people and learn what america really means to him. we first spoke with him back on the fourth of july as he began his journey of discovery in new york. he's been hoofing it since then. he's here to talk about his experience so far. you said you would talk with us. where are you? >> i'm in d.c. finally. >> all right. you said you were going to meet people, maybe stay on their couches or stay in hotels and see how it goes. how is it going so far? >> it's been going great. remember last time i told you i have a tent with me. >> yep. >> i haven't had to use this tent once. >> wow. >> it's been -- it's a month in. every single night i have found a place to stay, which has just blown my mind. >> you're doing -- you're doing 10 or 12 mile as day. you want to get to 20, but i

can't imagine in this heat that that's going to be easy to do. >> yeah. it's been awful. you know. a couple of weeks ago with the bad heat wash i ended up taking a few days off in philly because i couldn't walk. it was way too hot. so that's really slowed me down. but i made it to d.c., and i'm hoping to make up time now. hopefully when i get out to where it's flat i'll be able to just, you know, speed walk. >> let's talk a little about your goal, the idea of talking to americans and finding out what it's like to be an american. in all of your walking are you get chance to talk to people? where do you find them and what are they telling you? >> that's then other reason i've slowed down. people have been so great and so open to taking me in, having dinner with me and talking. so i -- you know, there's been towns where i planned on being like overnight and i ended up staying like a whole weekend because i'm just hanging out with people, you know. so that has been -- you know,

it's been great, you know. >> the impression i have is given everything that's been going on in washington, particularly where you've been walking between new york and washington so far that all anybody would be talking about is washington and how they're dragging their feet and how they didn't get the debt ceiling done and the debt and all this, is that true or all other things? >> exactly. like that's what you would thing. i've been walking in new jersey, delaware, maryland, the topic of the debt ceiling, it didn't really come up until i was a few miles over the beltway. like i was -- i was surprised. i don't know if people are tired of talking about politics or they don't want to talk about politics with me. even when i sort of brought politics up, people just sort of didn't seem that interested in engaging me in that kind of conversation, so, you know. it's surprising. >> interesting. lo gist particularly, you've been moving a little slower than expected, but are you still feeling good, feeling strong?

>> i'm feeling good. my hips were killing me because i didn't expect, you know -- i wasn't really thinking the back rest rests on your hips. they sort of rebelled. i lived on ibuprofen for the first week, but after that your body adapts. i've been doing well. my feet have been doing well. >> you've got a great attitude. go out there. not only ask what it's like to be an american but spread some of your great cheer. promise to keep checking in with us and tell us how you're doing and what you find? >> i will. >> you can follow his journey on facebook at walk like an merchlt good luck the rest o of the way on your journey. we'll talk to you again soon. >> he's lovely. >> he's crazy. he's got this great energy and happy. >> he researched how many pa

pairses of shoes he's going go through. >> i think he's going find everything's a little tougher but he doesn't seem dim at all. >> no, he's inspired me to make it through the rest of the day at wiest. >> if i walked to the west side of the highway, i'd be telling you about it. >> morning headlines coming your way next including if you're traveling to boston today, why the tsa has questions for you. it's 46 past the hour. [ waves crashing ] [ martin luther king jr. ] i still have a dream that one day on the red hills of georgia, the sons of former slaves and the sons of former slave owners will be able to sit down together at the table of brotherhood. i have a dream today! [ male announcer ] chevrolet is honored to celebrate the unveiling of the washington, d.c.,

martin luther king jr. memorial. take your seat at the table on august 28th.

happy wednesday it. is 48 past the hour. here are your morning headlines. u.s. markets open in just about 45 minutes. giving investors a boo. passage of the debt ceiling bill and a strong corporate earnings out this morning. congress leaving town without ending the stalemate over how to fund the faa. that leaves some 4,000 aviation workers furloughed through the august recess. it's expected to cost the government about 25 million bucks a day in lost tax revenue. simple questions to spot potential terrorists. a new system being tried out. screeners will strike up casual conversations with passengers asking sum pl questions like where are you heading to detect suspicious behavior. and the trial of former egyptian president hosni mubarak and his sons. he's in failing health. he was lying on a stretcher inside a steel cage inside the

courtroom. he has pleaded not guilty. you are now caught up on the day's headlines. "american morning" back after the break.

government health investigators still don't know the source of a deadly salmonella outbreak. they feel the culprit is ground turkey. they don't have enough information to blame one brand or one company or to even issue a recall. 26 states are affected. the outbreak blamed for at least one death and 77 ill pss. this has been going on for about five months, this salmonella outbreak. >> usually we're faster at tracing these things.

>> we are? >> cook a turkey thoroughly. studies say more than half of the children's car seats sold in the u.s. contain hazardous chemicals. they tested more than 150 car seats. cadmium, lade and others were found. there's a silver lining. they say that's a 64% improvement between 2008 and the new 2011 models. >> no word if the silver lining is bad for your children's health too. but the cadmium probably is. >> here's something i bet you didn't know. it's world breast-feeds week. >> let's talk about breast-feeding, shall we? it's been linked to a lower risk of type 2 diabetes in babies and breast cancer in the mothers. >> hospitals aren't doing enough to get women to breast-feed their new borns. sanjay gupta. both you and i have plenty -- voluminous experience in the

past six years. >> you more than me. >> thanks for clearing that up, san jachlt i didn't know where that was going. >> sanjay has three little -- >> sanjay, you're amazing. >> he hasn't breast fed anybody as far asia know. >> the documentary is out next week. >> he has three beautiful babies. >> he's watched his wife do it. >> sanjay, do you know what i mean. >> it's going be a tough segment to go. >> sanjay, we know, what is it about breast milk that's important to babies? >> the best way to know about it is the baby just born doesn't have a fully developed immune system so this is the first time they're getting antibodies to hem their immune system develop. you alluded to this. because of that you reduce the chance of all sorts of infections which are really important around the time of birth. ear infections, lung infections. also in moms it can reduce the

chance of ovarian cancer. it's not just the milk itself but the process of breast-feeding. children are very good at determining how much they should eat. that ability to turn things off gets a little bit more trouble as we get older which is part of the obesity epidemic. but they need what they eat as opposed to feeding a bottle where they may overeat or someone's being pushed to eat. i think those sort of things make breast milk a really important part of the first few months. >> sanjay, a lot of hospitals, they give babies formula. the baby doesn't sleep in the room with the mom, they give the baby's formula. >> that's right. >> what can the hospitals do to help encourage moms do this and not foil the process? >> all kidding aside i was surprised by that. only 4% of the hospitals follow the recommendations to make it easiest for mothers to breast-feed their children. with regard to feeding breast

mil milk. you have to do it within the first hour. if you do it within the first hour, you're going to have a much greater like llihood of dog that. it makes it more difficult for a child to breast-feed exclusively. 80% of hospitals actually do give formula initially. a third of the hospitals do that. if the baby's crying and they need milk you can do that right away. you're balancing that obviously with the child trying to get to sleep -- i mean the mom trying to get sleep as well but that seems to be very important and then a lot of support afterward in case the mom's having difficulty breast-feeding her child. >> whenever we hear these stories and i realize there are studies but some women can't breast-feed and whenever they hear these types of stories they feel guilty. because if you feed your baby formula somehow your baby is bound to develop things like type 2 diabetes and other things. >> it's funny you say that.

i was thinking about that exact issue last night. i think a lot of moms have had trouble. you take some solace in knowing that less than half women stwaully exclusively breast-feed the first six months, which is the recommendation. you're not alone, i would say. the best advice is hospitals can do a better job of actually making it easier for women to breast-feed if they want do that by following some of those recommendations. and also six months of exclusive breast-feeding. but beyond that, you can start to introduce solid foods in addition to to that to make it easier for both mom and baby. >> but there's also some concern that some women think they quote/unquote can't breast-feed because they haven't been given support early on and because the child has moved on to formula and their milk supply goes down when you've been given all of these supplement, right, sanjay? >> absolutely. your supply continues. demand and supply in many ways. a lot of women have a lot going on once they get home.

if they have trouble breast-feeding they don't know who to call on for support. they say, look, this isn't going to work and they switch to formula. these are recommendations. these are much better than they are in the united states. this is a message to hospitals and doctors, probably more so than moms out there. >> i had three little babies in five years and all three had bo bottles within two days. it makes it harder. i know sanjay did not personally nurse a child. >> i told you not to tell anybody about that. >> i think it's a good thing he's done that. >> the point is he's got three kids too. he gets it. >> sanjay, we're going to let you go on this one. 57 minutes after the hour. i'm going to take a commercial break to explain something to christina about men and breast-feeding. but hurry before this opportunity...disappears.

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