the eyewitness speaks. penn state asichlt coach fighting back this morning saying i stopped jerry sandusky. a cnn exclusive. the wall of silence surrounding penn state. was the university allowed to keep secrets about a kild sex abuse scandal for years? you can come back but don't get too comfy. wall street protesters coming back to the park without tents, no your generators and they're not happy -- on this "american morning." -- captions by vitac -- www.vitac.com and good morning to you.

it is wednesday november 16th. only two days until friday. ali velshi has the day off. i'm carol costello along with christine romans. welcome to "american morning." >> first up a severe weather warning right now for the new orleans area. jacqui jeras is in the extreme weather center. >> a rote taiting thunderstorm that could produce a thunderstorm any time. jefferson and including the city of new orleans. probably 15 minutes away. get to your safe place right now this morning. this is in effect until 5:30 local time. a radar indicated tornado that could drop down. the threat stretches from louisiana through parts of mississippi on into alabama, and we think that line will intensify as it heads towards the east today. so we'll continue to track the storm. any new information we'll bring it along to you. a tornado warning possible right now for the city of new orleans. back to you guys. >> thanks, jacqui. now to penn state assistant coach mike mcqueary speaking out for the first time about the

child sex abuse scandal that has rocked his world. he's been under fire after witnessing this back in 2002. in an e-mail obtained by the allentown erie, he says, i did stop it. not physically, but made sure that was stopped before i left that locker room. no one can imagine my thoughts or wants to be in my shoes for those 30 to 45 seconds. trust me. the e-mails appears to contradict mcqueary's grand jury testimony. he also made his first public comment since the scandal broke to cbs. >> reporter: do you have any idea when you think you might be ready to talk? >> this process has to play out. i just don't have anything else to say. >> reporter: okay. just one thing. just describing your emotions right now. >> all over, place.

just shaken. >> reporter: crazy? >> crazy. >> reporter: you said what? like a -- >> snow blower. >> prime reporter for the "patriot news" covering the scandal from the beginning, sara ganim. good morning. >> reporter: good morning. >> you heard mcqueary. on the defense saying he stopped the sexual abuse. that detail was not included in the grand jury report. right? >> reporter: that's correct. but you have to remember the grand jury report is a summary. it's written by grand jurors and not direct testimony. it's not a transcript. so it's possible that that wasn't included, however, the second part of his e-mail where he says he discussions with police and discussions with the man who is in charge of police, that is not included at all in that grand jury presentment, and there is a sentence in there that specifically states that mcqueary was not interviewed by police at the university.

>> sara, i just want to read those two statements. one from the grand jury and one from mcqueary's e-mail to viewers so they completely understand. the grand jury report says never questioned by university police and no other entity conducted and investigation, and this is mcqueary's e-mail which seems to contradict that. he wrote, i did have discussions with police and with the university police in charge of police. if what mcqueary says true, that's a big deal. >> reporter: well, i think it's going to be something people will be talking about, at least until he testifies and attempts to clear it up. you know, i think it's a rush to judgment to say that he's contradicting himself at this point, but it's raising a lot of question. people are talking about it. this is the guy that is the key witness for all three cases. he's a key witness against jerry sandusky, because he was an eyewitness to a sexual assault and he is really the sole

witness against two penn state officials charged with perjury and with failure to report. so if his story changes and he loses credibility that could be a detriment to the prosecution's case against those two penn state officials and possibly part of the case against sandusky. >> okay. let's talk about sandusky and his interview on monday's nbc program. sandusky's attorney said he found the second victim. the victim mckeary allegedly witnessed being molested in 200. is this the real victim, too? have prosecutors commented at all on this claim? >> reporter: prosecutors aren't talking about it. i did talk to a legal analyst that set the defense la to go to great lengths to prove this really is victim two, that it's not some other kid who might have had some our contact with jerry sandusky in 2002. this child is now a man, is coming forward and saying, i

took a shower with jerry sandusky, but nothing inappropriate ever happened, and that is directly -- directly contradicts what mcqueary says. he says he witnessed an assault in progress and was very specific about that assault. >> and now he says he stopped it apparently. the "new york times" is reporting this that joe paterno, just four months ago, sold his house to his wife for $1. so, you know, this makes you wonder. is this an older man getting ready to get his estate in order or is he trying to protect himself from civil lawsuits? >> reporter: you know, this happened a couple months ago. it certainly happened before this all unfolded, and i think that that -- it's hard to say. i don't think that you could judge that at this point why he did it. what's inside of his head, but like you said, he is 84 years old. these are certainly things that people do when they get older. they get ready to distribute

they are estate and get ready for the end of their life, essentially. >> sara ganim, thanks, as always, joining us live from pa this morning. we're getting a clear picture how penn state was able to put up a wall of silence concerning jerry sandusky's alleges child sex abuse. turns out the university is exempt from the state's public disclosure law. don't forget, this is a state university. drew griffin has more in a cnn exclusive. >> reporter: it's the type of information we would normally get in the united states from any public institution, especially a police department. the records, the incident reports. all of the information you rely on to get the facts to know who knew what, when and where, but penn state you will not find that, because penn state got itself an exemption from this state's open records act. at the same time in 2000, 2008, when the legislature was discussing this new law, penn state's president personally went to the legislature and

asked to be exempt to make sure the records were kept private. >> what that means in essence is that while every other commonwealth agency, police departments, townships, school districts, are subject to this law and would be required to provide public record, penn state is exempt. that came as a result of a series ever lobbying efforts through the house of representatives that was taking a look at rewriting pennsylvania's right-to-know law, among the worst in the nation, and at that juncture, the president of penn state was weren't of the key lobbyists testifying before the house committee on, i believe it was august 7, 2007, seeking an exemption for penn state. >> reporter: we did try to reach graham spanier at his home. we did not get an answer from the former penn state president, but we know what he told the legislature when he was seeking this exemption. he said he wanted penn state to be exempt from the records because he needed to protect the

competitiveness of the university, that he was concerned about the cost of compliance, and that a huge bureaucracy would have to be built to answer questions and open those public records. looking back on it now, it has a whole different look. >> wow. later this hour, at 6:40 eastern we're going to talk with clinical psychologist dr. jeff gardere about why someone might stay silent when witnessing sexual abuse or some other horrible incident. right at this very moment the wall street protesters can once again owl siozuccotti park only temporarily. for now the group no longer has the right to sleep in the park. deb feyerick is live downtown. are protesters going in the park now or sort of spread out around it? >> reporter: they are, as a matter of fact, carol. a handful of demonstrators that you can see behind me, and as you say, they're no longer allowed to occupy the park, per

se. they can demonstrate, protest, but they cannot set up any tent or generators. if you look at this park, this was covered with tents. now, actually, somebody remarked you can actually see covered. one person set up umbrellas. that's the only structure we've seen here. a couple of moments ago in was an altercation between some of the demonstrators and police lined up, but really, no more than a couple of dozen protesters who are here. yesterday far different scene when this park was completely cleared out. police in riot gear facing off against to the demonstrators, against the protesters, removing the tents and generators and everything they accumulated over the course of two months in order to clean this park. that park is now, in fact, clean, and you do see some people who have gathered, who are eating. every now and again somebody

yells out somebody about a paycheck. again, this occupation about the austerity in the united states. in new york they ruled in favor of the owners of the park saying the first amendment does not give people the right to take over a public space. you have to remember, this is a very sort of -- right in the middle of wall street. a lot of people come here fo lunch. it's right near the world trade center site, when the buildings are going up there and is usually a very active site. right now it's quiet. interesting to see around lunchtime if people come back, slowly, slowly. probably not because of the barricades that have been set up here. again, very much a sign that this park belongs, at least for now to the folks here demonstrating, and you see the people in yellow, that yellow security guard, those, in fact, are private security guards who were hired by the company who runs this, and at one point earlier this morning they

actually outnumbered the number of demonstrators. nearby community church, they've actually said that the demonstrators can go there and hold their public meetings, which they do, and they're loaning that space to them, carol and christine. >> deb feyerick, reporting live from zuccotti park this morning. thanks. after cancelling two previously scheduled trip, president obama kept his promise to visit australia. there just over a day announcing a new agreement to expand america's military presence in that country all with an eye on china. cnn white house correspondent brianna keilar traveling with the president joins us live this morning. good morning, brianna. >> reporter: good morning there, christine. president obama and australian prime minister julia gillard announcing a significant new partnership between australia's defense force and the u.s. air force and u.s. marines. 200 to 250 u.s. marines we will be seeing by the middle of next year permanently stationed in

the northern territory of australia. so the part of australia that borders -- that really looks on to asia, and those troops would come in and out in six-month deployments, and you will see that force increased over a few years. up to 2,500 u.s. marines. in addition, the u.s. air force seeing more access to this northern military base of darwin, u.s. military aircraft that would have more access along with the australian air force doing training. the question, of course, is why. when you heard president obama and the prime minister talk about this, the first thing they used to explain this move is to better be able to respond to humanitarian crises, like natural disasters, like what we saw with the indonesian tsunami and earth wake in japan. of course, an obvious question, what about china? it's military star very much on the rise? here's as far as president obama would go when asked that question. >> the main message in a i've

said not only publicly but also privately to the chinese is that with their rise comes increased responsibilities. it's important for them to play by the rules of the road. there are going to be times where they're not, and we will send a clear message that them that we think that they need to -- they need to be on track in terms of accepting the rules and responsibilities that come with being a world power. >> reporter: but there's a subtext here can you not ignore. that's cha china is flexing not only its economic muscle but military muscle. it launched military all of the south chine nap sea a move that threat threatened a number of allies. and already we're seeing reaction from the chinese

government to this move. imports. saying this may not be quite appropriate but a spokesperson for the white house, carol and christine, responding right back saying this is appropriate and it's necessary. >> all right, brianna keilar in australia. thanks. we always hear from the chinese after a move like this where they say the united states is seeing shadows, or that it controls its part of the world. the u.s. does not and they don't really like our advice about staying on track. >> seems like it's becoming a turf war in that part of the world between the united states and china. a lot of people say it may do more harm than good. >> we'll have to see. they certainly are building up their military might with american dollars we borrow from china every day. >> you'll talk more about that later. just ahead on "american morning," the secret service trying to explain hue bullet hit a window at the white house. we'll have the latest on their investigati investigation. and a new poll has iowa up for grabs, but can rick perry and herman cain resurrect their campaigns and compete in the

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i tell you what i can spend. i do my best to make it work. i'm back on the road safely. and i saved you money on brakes. that's personal pricing. welcome back to "american mornin morning". it's 18 minutes past the hour. with the iowa caucuses just seven weeks away the nation's first presidential nominating state is up for grabs pap new poll showing a four-way statistical tie as two republican candidates scramble to resurrect their sagging campaigns. and rick perry unveils his plan to overhaul congress. cnn's senior political editor mark preston live in washington. ooh. this caucus is going to be exciting. >> reporter: it is, carol. a segment of the republican party prefers they would have already chosen their nominee. they realize they're going up against the obama campaign machine. they realize how well tuned it sand the fact of the matter is president obama will have more money than the republican's

nominee. look at a new poll out of iowa it shows it's anything but settled. look at numbers. herman cain even though he's had numbers of sexual harassment lodged at him in the past couple weeks he's coming in at 20% followed by ron paul at 19%, mitt romney at 18%. newt gingrich at 17%. you probably remember, carol, back in the begins of december, we all thought newt gingrich would get out of the race. he had lost all of his campaign staffers. clearly, he is making a comeback. the reason why that he is the anti-romney at this point, carol. >> amazing. let's talk about rick perry for a moment, because he's announcing a plan for the part-time congress, although i must say many in america think congress is already a part-time body, but tell us more about that. >> reporter: yeah. you know, rick perry's clearly trying to cast himself agency the washington outsider. he was saying during a campaign stop yesterday in iowa, but not only is he saying it but suggesting washington really needs to be turned on its head,

including changing the way congress operates. in fact, let's listen to what he had to say yesterday in iowa. >> -- create a part-time congress where their pay is cut in half, their office budgets are cut in half and their time in washington is cut in half. >> reporter: carol, rick perry is out there laying out how he would change washington, dramatically change how congress operates. ge back to a citizen legislature and offered several other reforms including the idea of putting a moratorium on all the rules and regulations and check this out as well. he is talking about putting term limits on the supreme court justices. the supreme court justices have a lifetime appoint. rick perry is saying perhaps they should have only 18 years on the court. so some bold, bold moves by rick perry in iowa yesterday, and he really needs it, carol. fact of the matter is, his campaign is sagging at this time. >> it's a definite push for the tea party voters. right?

they're the ones that believe government is too big, but i would say that most voters in the united states complain that congress doesn't work enough. >> reporter: that's true. in fact, if you look at the favorable, unfavorable ratings of congress, they are terribly low. why should we be surprised? unemployment is over 9% nationally and all you hear out of washington nowadays is gridlock, gridlock, gridlock. quite frankly the other story out of washington is corruption, corruption, corruption. no surprise rick perry is trying to seize upon this and you're absolutely right. trying to get the tea party folks to support his candidacy. >> thanks. join us tuesday night november 22nd for the cnn republican debate. wolf blitzer will be the moderator. the focus on national security. live at 8:00 p.m. eastern tuesday night right here on cnn. ahead on "american morning," newt gingrich now in the worse place he could possibly be in the gop race. right behind mitt romney. just ask bachmann, perry or

cain. he talks to our jim acosta about why this time it's for real. and good news when it comes to bank fees. find out which bank is actually getting rid of them instead of adding them. it's 23 minutes past the hour.oc acuvue® oasys for astigmatism. t he said it's the only lens of its kind designed to realign naturally with every blink so now, i'm seeing more clearly. [ male announcer ] learn more at acuvue.com.

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welcome back. "minding your business." right now u.s. stock futures pointing to a lower open after what eventually turned tout be a positive day on wall street. all three indices finished higher after upbeat on retail, inflation and manufacturing. farmland, wow. a very good investment. prices jumped 25% in the third quarter. 25%. that's the biggest one-year jump in more than three decades. the higher land prices fumeed by higher corn, soybean, cattle and hog prices. we should be talking about another bailout, only this one's not from wall street. an independent audit shows the federal housing administration could run out of money in coming year because its cash reserves have fallen that low. the fda says home prices would have to drop significantly for the agency to ask for an actual bailout. the postal service reporten

an annual loss of $5.1 billion. may be no prize in today's digital age it's one of the reason for the losses, also increase in health care costs for postal employees. chase is scrapping free bank fees it had been testing. pulled, $10 and $15 monthly checking account fee and a $3 fee to use your debit card. shares in the professional social networking company linkedin are about to flood the market. bane capital, one of the company early backers is selling its entire stake in that company. "american morning" will be right back after this quick break.

i've done this for 53 years, and the two hardest moments of my career -- >> his dpcampaign was dela decl

doa. can he convince the american people he's fresh at the same time? on this "american morning." and welcome back. it's 30 minutes past the hour. your top story this morning, mike mcqueary, the penn state assistant coach, claims he witnessed jerry sandusky raping a young boy back in 2002. he says in an e-mail he made sure the locker room assault was stopped and then went to police. the e-mail obtained by the allentown morning contradicts mckem mcqueary's reported summary testimony to the grand jury. and in about 30 minutes the occupy wall street protesters should be allowed to return to zuccotti park. that's when the park opens to the public. they were not allowed to spend the night there after a judge upheld this. a firm tornado did touch down about 60 miles southwest of the city in louisiana.

reports of broken windows at high schools and damage to buildings and homes. right to jacqui jeras. frightening weather down there. hi, jacqui. >> it really is an ugly morning across the lower mississippi valley. two storms are rotating. the one that caused damage was down here near the airport, that cell appears to be weakening now. the second one right here that includes orleans parish, city of new orleans. i-10 right here. the rotation just to the north of there approaching lake pontchartrain. good news to see it starting to move out of the city, still intense rainfall. a lot of lightning and that warning still in effect. we'll continue to watch this one. this one indicate and radar, nothing on the ground here. we'll continue to track the storm. and the whole line intensifying over the last hour or so and we have watches from louisiana stretching through, say, birmingham, alabama, all of this is going to spread east

throughout the day, and it's really going to be an ugly day overall. if it's not raining where you are it probably looks like this. a picture of downtown atlanta. very overcast conditions, and atlanta will be under the threat of severe thunderstorms late this morning through the early afternoon hours, and then that will move on to the carolinas throughout the day. affecting a lot of big cities throughout our afternoon. now, the northeast getting wet at this hour, but we think the storms had stay below a severe limit. the travel will be real ugly. behind the system, very cold air moving in place. in fact a good 20-degree drop for many of you us. only 37 in minneapolis. 48 in kansas city. look at the sultry air ahead of the front. 85 in new orleans and 75 in atlanta. you can really see where the cold air is piling in. also a storm out to the west. the pacific northwest looking for heavy snow in the cascades. one to two feet expected by this time tomorrow.

>> okay, jacqui. >> thanks. who saw this coming after rick perry's flub and the herman cain scandal, newt gingrich is surging in recent polls, but will voters buy what he's selling? >> the new newt. >> cnn's political correspondent jim acosta caught up with newt on the trail. >> reporter: meet the gop's latest fresh face. newt gingrich. >> yesterday afternoon in jefferson, iowa, someone introduced me as the front-runner. >> reporter: yes, the same gingrich once a dead candidate walking now has a shot at the gop nomination. drawing big crowds in iowa he is candid about his experience and his entire senior staff abandoned him last summer. >> reporter: it you feel dead? >> desperate. not dead. i've done this for 53 years, and the two hardest ones in my career were in july. >> i am the only candidate running who has actually led at the national level. >> reporter: wit gingrich, hue

milt hey its limits. in assessing what went wrong with his campaign, he compared himself to two conservative giants. where did you go wrong? >> big mistake on my part to try to bring in conventional consultan consultants, bougecause i am su an unconventional political figure that you really need to design a very unique campaign that fits the way i appropriate and what i'm trying to do. >> reporter: gingrich has climbed in the polls by outshining many rivals at the gop debates and by selling ideas that sometimes veer from tea party doctrine. for example, gingrich would spend billions on a new brain science project finding cures for alzheimer's and parkinson's. >> the best way to control medicare, defeat the diseases so people stay healthy. >> reporter: in the same breath he rails against the washington establishment. >> the washington establishment model is pain and austerity. >> reporter: despite being a creature of the capital from the

early three decades. you're not a creature of washington? >> no. >> reporter: how long have you lived outside of washington since your days as the speaker? >> i haven't. i've lived in mclean, virginia, for practical reasons. i did work at the central intelligence agency, work at pentagon. >> reporter: critics might say you are a creature of washington. >> you can call me anything you want to. all right. none of my policy proposals represent the washington establishment. >> reporter: ultimately, gingrich wants voters to judge him not on his past, such as his previous marital difficulties, but on what his campaign website calls, the new newt. >> is this because this is the new newt that we're seeing here? newt gingrich? >> go back and get the "time" magazine cover in 1994 where they had me as scrooge holding tiny tim's broken crutch and the title was, how mean will gingrich be to america's poor? one of the things that it led me

to be, it created a character. when people saw me in debates they said, that can't be newt gingrich, because, in fact, i'm very different. >> reporter: another telling side of gingrich's sudden surge, he plans to open up his first campaign office in iowa next week and has an infusion of campaign cash to work with after raising nearly $3 million in just the last month. jim acosta, cnn, sheffield, iowa. the secret service confirming a bullet shattered a window at the white house before it was stopped by protective glass. a second bullet was also found outside the window. the secret service says it has not confirmed whether this incident is connected to reports of gunfire near the white house on friday. witnesses say they heard shots and saw two speeding vehicles in the area, an ac 47 rifle was also recovered. and it's 37 minutes after the hour. what's news this morning, italy

the prime minister designate is convinced his country can overcome its debt crisis. after two days of talks with political and labor unions, presenting the proposal this morning. it leaves the economy buckling under more than $ 2.5 trillion in debt and very slow growth. and the mayor will talk about detroit's financial crisis. the speech comes days after a report revealed the possibility that the city will go broke by july 2012 unless immediate an drastic cuts are made. and a little early foresa santa. a teenager was stuck in a chimney 12 hours overnight after he tried to break into someone's house. the suspect covered in soot as officers yanked him out of there. how can you think that's a great way to break into a house by -- okay. whatever. talk about a deer in the headlights. this stunned animal survived being hit by a car in michigan. oh, such a sweet picture.

stood frozen on the roadway, as you saw, nearly half an hour pap police deputy finally picked up the deer -- as you can see, he carried her to safety. he didn't want to -- ah. >> that's so sweet. >> all right. and the deer runs away, by the way. >> waiting for the deer to run away. >> it took a half hour. >> the deer has to run away. a cautious deer. >> ah. >> in the headlights. ahead on "american morning," why do some people stay silent and face horrible events like the alleged child rape by a former penn state doech? we'll go in-depth with psychologist jeff gardere. [ stu ] yeah. it's electric. i don't think so. it's got a gas tank right here. electric tank, right over here. an electric tank? really, stu? is that what you pour the electricity in? it's actually both, guys. i can plug in and go 35 miles gas free, or i can fill up and go a whole lot farther. is that my burger? oh. i just got bun. i didn't even bite any burger.

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what are these guys doing? [ horn honks ] could you please not honk while this guy's telling me about his chevy volt? is that that new... is that the electric car? yeah. but it takes gas too. ask him how much he spends on gas. how much does he spend on gas? how much do you spend on gas? how much do i spend on gas? if i charge regularly, i fill up like once a month. he only has to fill up about once a month. [ woman ] wow. that's amazing.

welcome back. in e-mails just obtained by allentown's newspaper, assistant

coach mcqueary seems to contradict the grand jury testimony claiming he did stop jerry sandusky alleged locker room rape in 2002 and did talk to police about it. mcqueary has faced intense and immense criticism since the scandal broke for not doing enough after witnessing this alleged attack back in 2002. we wanted to explore why some people choose to stay silent when confronted with this kind of situation. clinical psychologist jeff gardere joins us now. this is a difficult story. no question. a lot of people look at it in hindsight and say, why didn't this assistant coach do more? is there a psychological reason why maybe he didn't insist, insist, insist police were involve or didn't physically separate sandusky from the boy? what could have been going through this mind to do just what on the outside looks like the minimum? >> first and foremost, i don't think there's any excuse for not separating sandusky from this boy. this was a rape allegedly that

was going on. >> short of stopped and walking out of the locker room. >> talking about physically getting involve and separating them. now he's saying somehow he did do more but we really don't know. what we know now is perhaps he didn't do enough. there's psychological things going on, too, as you are referring to. first of all, disbelief. he just could not believe that perhaps sandusky, who is this revered figure on the campus, had esteemed history with this school, would do something like this. secondly, this thing being in his face, just not being able to fathom the depth of what was going on, that an actual rape was taking place, he may have frozen. he may have had extreme anxiety. he may have gone running out of there, but he just did not have the maturity, it seems, and he was much younger at the time, to do the right thing, which was to go to the police. >> so the moral obligation was

to physical hi separate this from happening and go to the police. >> what would anyone do? what would you do if you saw an actual crime going on? but we're not talking about two people fighting. we're not talking about a robbery. we're talking about a grown male raping a child. >> but we know that there are people who see things and don't do something about. just recently there was a viral video of a little girl, 2-year-old in the street in china, run over twice and people walked by her for i don't know how long. we see it happening all the time where something's happening and people don't do something. >> we are a global society that operates under fear. a lot of times we're afraid that if we get involved, something may happen with us. we're so wrapped up in our own lives. >> right. >> we don't want the liability, perhaps, of getting involved in something else, because it's too much for us to bear, to be able to bring into our own emotions, and this is something that is

extremely emotional. it's traumatic. you better believe it's traumatic to the child, what's going on. and i'm not making es excuses for this individual, mcqueary, but there's also a trauma in seeing something so horrific and heinous going on that you're frozen and you're not doing what you should be doing. >> i know. and there are other reports of a janitor who happened upon a similar scene and it just destroyed him. we don't -- that man mow is -- can't testify, but -- >> talk about the old boy network, issues of power. afraid of tarnishing something that's so huge, such as an institution. a literal institution like penn state and afraid of getting in trouble for that. >> good point. back in 2008, when victim one, the boy known as victim one reported sandusky it was to high school officials and the high school immediately acted. interesting. with these allegations and proper behavior swirling around penn state as far back, according to sara ganim's report

1985 and took one report from a high school -- >> it may not have been indebted to penn state in any way. that is a huge institution. it you're with penn state you may be afraid how those wheels may turn and how you may be be ground up by those wheels. >> cbs spoke to mike mcqueary yesterday. listen to what he said about what is happening to him now. >> reporter: just describe your emotions right now. >> all over the place. just -- shaken. >> reporter: crazy? >> crazy. >> reporter: you said, wa, like a -- >> snow blower. >> he's had ten years to think about this. or to put it out of his mind. we don't know. >> uh-huh. >> we're all just reacting after week. snow blower was an interesting way to describe it i think. >> he's talking about, of course, the fallout of what perhaps he should have done what he didn't do enough of, and now he's seeing -- it's one thing

and it's horrific enough to see a child being raped, but now to see that it has reveberations where there are so many more children involved. if he had, perhaps, done more -- we don't know has he really did at this point -- but if he had done more, perhaps more lives would have been saved. on his conscience, he has to deal with eight, nine, 20 kids perhaps whose lives have been destroyed because in some ways he didn't do what he should have done. if he could have done it different, you better believe it, seems like a decent guy, he would go back in time and do much, much more. it's something we all need to understand when we see these situations we've got to step in. it's a moral, not just a legal obligation. >> and three different ways we're hearing a summary of the grand jury testimony from e-mails that a newspaper got and from that short snippet right in. we don't even have the complete picture yet of exactly what he saw when and what he did when.

all of that will come out and hopefully we'll be able to see where mistakes were made and something like this will never happen again. >> absolutely. >> thank you. >> my pleasure. 48 past the hour. just ahead on "american morning," cities across country telling wall street protesters, your time is up. now we know what city is next. and hillary clinton getting quite an aloha. find out what had her all cracked up in hawaii. we'll be back. . i'm getting new insurance. marjorie, you've had a policy with us for three years. it's been five years. five years. well, progressive gives megan discounts that you guys didn't. paperless, safe driver, and i get great service. meredith, what's shakin', bacon? they'll figure it out. getting you the discounts you deserve. now, that's progressive. call or click today.

nine minutes until the top of the hour. has you need to know to start your day. criticized for not doing more in an alleged rape by former coach jerry sandusky. now penn state assistant mike mcqueary is fighting back. in an e-mail obtained by allentown's "morning call" mcqueary says he stopped the assault and went to police. the occupy wall street protesters can return to zuccotti park in lower manhattan but can no longer camp out at

night. and crackdowns continue. a federal judge cleared the way for eviction of protesters near city hall in dallas. dozens camped month. city officials meet today before taking action. and descending on alabama's capital yesterday, upset over wa some call the toughest law against illegal immigration in the nation. the justice department was challenging that law calling it unconstitutional. duke coach k set the record for the most wins by a division i coach. the win number 903 of his coaching career breaking tie with hi former mentor, bobby knight. that's the news you need to start your day. "american morning" back after a bray. break.

were back. help wanted at nasa. launching an astronaut recruitment drive. astronauts are expected to have degrees in math, science and engineering. carol, we're out. and you have to learn russian. >> and now that the shuttle program's ended nasa's hopes depend on the soyuz rockets to carry crews to and from the space station. hillary clinton getting a little surprise during her trip to hawaii. check this out. [ laughter ] >> that was perfect. >> i love her reaction. i missed it the first time. that was -- it was a guy holding a -- wearing a mere loincloth.

the secretary of defense in hong kong's chief executive during a photo op. you can see, it really cracked people up. we're not sure who that man was with the tiki torch or why he was carrying his tiki torch past hillary clinton. think you're a world leader in all of these photo ops. something like that must be really funny. the late-night talk show host, having a field day with rick perry's plan to slash congress in half and new york's decision to clear out the occupy wall street protesters. listen. >> we have to hurry up, because mayor bloomberg is threatening now to clear the theater. i'm sorry. but the mayor said that the reason people were thrown out of zuccotti park was because conditions were hazardous, dangerous and unsanitary. i'm saying if that's a reason to throw people our the park, we'd all have to leave new york. you know? we'd all be -- >> today rick perry unveiled a new plan to completely overall all three branches of government.

don't beat me to the joke -- don't beat me to the joke -- he unveil add new plan to completely overhaul all three branches of the government, just as soon as he remembers all three branches of the government. judicial -- the nina the pinta and the santa maria. >> oh, poor rick perry. he'll never live that down. just ahead on "american morning," wall street protesters saying they are too big to jail. what can we expect when they all come back? a spokesman for the occupy movement will join us with a message for mayor michael bloomberg. ♪ [ cellphone rings ] cut! [ monica ] i have a small part in a big movie. i thought we'd be on location for 3 days, it's been 3 weeks. so, i used my citi simplicity card to pick up a few things. and i don't have to worry about a late fee. which is good...

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the penn state assistant who says he witnessed jerry sandusky's alleged rape of a young boy claims in an e-mail they stop the attack and, yes, told police about it. you can come back, but don't get all comfy. wall street protesters return to the park for the movement, where it started, without tents, no sleeping bags and they're not

happy. and the anti-santa. a guy goes down the chim chimney to take stuff and gets snagged on this "american morning." good morning to you. happy wednesday. it is november 16th. welcome to "american morning." >> all right. up first, penn state assistant coach mike mcqueary speaking out for the first time since the penn state scandal erupted pup comes as new e-mail suggests mcqueary stopped jerry sandusky's alleged sexual molesting of a child. meantime, mcqueary talked to cbs about the events that have turned his world upside down. >> reporter: do you have any idea when you think you might be ready to talk? >> this process has to play out. i just don't have anything else to say. >> reporter: okay.

one last thing. just describe your emotions right now. >> all over the place. just kind of -- shaken. >> reporter: crazy? >> crazy. >> reporter: you said what? like a -- >> snow blower. >> sara ganim joins us now from state college, pennsylvania. you guys are doing great reporting on this, sara. nice work in. let me ask you first, i want to start with what mcqueary wrote last week. i did stop this encounter in the locker room but not physically, but made sure it was stopped when i left that locker room, adding, no one can imagine my thoughts or wants to be in my shoes for those 30 to 45 seconds. trust me. two points i want to get your thoughts on here. one, that seems a little different than the summary of a testimony to the grand jury and what are victims' families saying about that? the shoes no one wants to be in are the victims' shoes.

not necessarily mike mcqueary. >> reporter: start with that. through the whole process the victims' families felt the attention was taken off of them and what they were going through, what they've been going through several years and what they're going to face. remember, they still have to testify. the inattention instead focused on the scandal, who and saw what and when, and the sensational football story and all of these side stories going on. they felt the same way through the whole process. that they're not getting enough attention, and not to sound like they're seeking attention at all, because they're not. they feel people are effecting there are eight victims an focusing on other parts of the story. as far at the mcqueary e-mail, we need to remember that that grand jury is a summary. it's not a transcript. we don't know the exact details of what mcqueary testified to the grand jury or what he told police. however, that one statement

where he says he did talk to police and to the person who led university police, which is gary schultz. it does appear to directly contradict that grand jury statement, saying that state police never interviewed mcqueary and never did an investigation. >> interesting that in in grand jury report, i'll put it up for you, the graduate assistant was never questioned by university police and no other entity conducted an investigation. the e-mail mcqueary sent apparently to a friend says, i did have discussions with police and with the official at the university in charge of police. that's going to be all about, of course, incredibly important to sort out when there is a legal proceeding that gets under way starting next month about what's going to happen here, which brings me to the idea of legal proceeding. dot families of the victims what do they think about sandusky standing up saying i didn't do it. all of these people trying to give their side of events? if there is a trial, that means

some of these alleged victims will have to come forward. >> reporter: yeah, and really what they want, christine, is to not have to come forward and testify. what they were hoping for was after keeping this secret for so many years, they were hoping that he would plead guilty, and that they weren't going to have to go through the trauma of a very high-profile trial. but, you know, after seeing what he told nbc yesterday, they were telling me it appears that's not going to happen. >> so the story, this very difficult story continues. sara ganim from the "patriot news," thanks. >> lots of unanswered questions among the penn state scandal. what key officials knew about the charges against jerry sandusky and when they knew them. turns out pennsylvania is exempt f the open records law and protected by a legal wall of silence. drew griffin has more in a cnn exclusive.

>> reporter: carol, it's the type of information would normally get in the united states. all the information you rely on to get the facts to know who knew what, when and where, but penn state will you not find that, because penn state got itself an exemption from this state's open records act. at the same time in 2000, 2008, when the legislature was discussing this new law, penn state's president personally went to the legislature and asked to be exempt to make sure the records were kept private. >> what that means in essence is that while every other commonwealth agency, governor's office, police department, townships, school districts, are subject to this law and would be required to provide public record, penn state is exempt. that came as a result of a series of lobbying efforts through the house of representatives that was taking a look at rewriting

pennsylvania's right-to-know law, which was really among the worst in the nation, and at that juncture, the president of penn state was one of the key lobbyists testifying before the house committee on, i believe it was august 7, 2007, seeking an exemption for penn state. >> reporter: we did try to reach graham spanier at his home. we did not get an answer from the former penn state president, but we know what he told the legislature when he was seeking this exemption. he said he wanted penn state to be exempt from the records because he needed to protect the competitiveness of the university, that he was concerned about the cost of compliance, and that a huge bureaucracy would have to be built to answer questions and open those public records. looking back on it now, it has a whole different look. carol? >> drew griffin reporting for us this morning. president obama finally making good on his promise to visit australia after cancelling two previous trips. earlier this morning alaohe

announced an agreement. 2,500 marines will be stationed in a military base in darwin, australia. and almost time to sound an alarm. serven days to come up way plan to cut the deficit. according to a new poll, americans don't have much confidence in this group. 78% of americans say it's unlikely they'll get a deal in time and when asked who to blame? 4 % blame republicans. 32% democrats. and outside alabama's capitalance angry over the new tough immigration law. at least 13 people were reportedly taken into custody. the u.s. justice department is challenging the law calling it unconstitutional. it's a little early for santa, if you're at the mall, but police in georgia say a teenager was stuck in a chimney for 12 hours overnight after he tried to break into someone's house. the suspects covered in soot, as

officers yanked him out of in. >> when would that idea strike? sitting around, wow, i need to break into a house and i'm going to go down the chimney. hi, jacqui jeras? >> i don't know. maybe his girlfriend was in there. i don't know. a teenager. >> oh, well. teenager, the key word there. hi, jacqui. >> hey, guys. tracking severe thunderstorms across parts of the south. we were talking last hour as you saw, new orleans was under a warning. that warning expired but we did have a couple of reports of some damage to a storm southwest of there, around this area, windows blown out of a high school there. a couple homes damped. no reports of injuries just yet. a tornado watch remains in effect. not a warning. you still have thunderstorms rumbling across the area. we're also keeping an eye on storms here across parts of mississippi. this particular storm did produce a little damage around

the town of laurel. three homes were damaged here. so the warnings are still in effect for clark county. that storm is moving on towards the north and east and, of course, the watches extending all through this area until 10:00 local time, and we do expect that to continue to spread on off to the east throughout the day today. so montgomery, atlanta, over towards columbia and into charlotte, you might face severe weather later on today, and large hail, damping winds, we think more common in terms of severe weather, but isolated tornadoes are possible. we've had five now. all of them have produced damage. now, the system affecting really the entire east coast, but those of you getting into the northeast, this isn't bothering you for severe weather but causing problems at the airports. expect travel delays. cold air moving in behind the system. temperatures dropped by as much as 20 degrees compared to where you were yard and the pick northwest look for heavy snow and strong winds. could get gusts up to 65 miles

per hour on the coast. one to two feet of snow in the cascades. hey, it's noose across much of the southwest. back to you guys. >> good for them, i say. >> thanks, jacqui. still to come, tensions rise. wall street protester promising they will come back stronger after a crackdown in new york city. we'll hear from one of their leaders on what we can expect in the next couple of days. and the gop's new favorite. newt gingrich. his campaign getting lots of steam and lots of cash, but can he keep it going? and congresswoman gabby giffords' road to recovery following a traumatic brain injury. we'll talk to dr. sanjay gupta about her progress. you're watching "american morning." ten minutes after the hour. what makes scottrade your smartphone's most powerful trading app ? total access - to everything. from idea to research to trade. including financials, indicators and real-time streaming quotes.

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occupy wall street pro

toastetoast e protester heading back to zuccotti park. protesters cleared out of the park in a surprise raid by police hours earlier said could come back without tents, generators. protesters said they weren't allowed to lie down or eve be sit. they're wandering around like ants after you knock down the ant hill. and live with us, deb feyerick. the park looks much different than it did even 36 hours from now. >> reporter: absolutely much, much different. they're not at comfortable and there are not as many either. you can see a couple dozen protesters, sitting, some wrapped trying to keep warm. a little structure there in the middle. an umbrella is all that remains of what was a big tent city there. security guards, private security guards wearing yellow vests. a number of them have been brought in. this whole park, take a look,

has really been cleared out. virtually no signs of the camp that had sprung up here. you can even see the lights in the pavement. something you haven't seen for a while, saying occupy wall street could come, protest, demonstrate, but the first amendment does not give them the right to set up tents, to set up generators and effectively camp out. now, the two-month anniversary is tomorrow. go to their website and you see that they are planning or at least calling on a move to shut down wall street. they're going to go to various subways to try to talk to people with a public microphone. you can see the anger. the shared anger, disparity over an economy that works for everyone, not just for a few. and the as a matter of fact, a little altercation this morning with a protester yelling at police officers saying, yeah, yeah, you're getting paychecks.

there really is a deep sense of frustration, but very quiet. really. trinity church said you could come, work out of our space there. that's right near here. right near the world trade center site. right now occupy wall street it seems really trying to regroup, trying to figure out what they're next move will be and how they're going to take this forward even though many occupations around the country are sort of being dispersed, christine. >> deb feyerick. will that galvanize, energy the movement or is it the end of the movement? deb feyerick, thanks. carol? that's the very question we're pondering in a short time. joining us, director ever the working families party in new york and a wall street protester himself. welcome, dan. i'm going to ask you what christine just asked. will this -- they took the occupy out of occupy wall street. >> sure. >> not only in new york but in cities across the country. >> sure. >> so will this galvanize the movement or kill it?

>> we should back up. two months ago, nobody in america was really talking about the issues of any quality, of the 99%. so at some measure while what the mayor did was quite wrong. there was no reason to go in, in the dark of night to trample on the first amendment rights of the protesters's in some ways it doesn't matter. already changed the conversation in america. it's clearly going to continue. many people are saying yesterday, you can evict an encampment but not an idea whose time has come, and this idea that we need an company that works for everyone, that the country is seriously on the wrong track has spread and there are millions of people who now understand this. >> so some are saying that now is the time. since the message is out, like you said, supposedly, now is the time to regroup, and the occupy movement should sort of, like, maybe enlist the help of politicians that might be able to help them.

something they've been loathed to do. do you think that will happen? >> i don't know. i'm a supporter. the message of occupy, i haven't been down there sleeping or -- i've been there a few times, and they will make their own decision, and clearly there's going to be a big march tomorrow afternoon. and other things during the day. both here and around the country. so i would imagine it's going to take some new forms, but they will continue to try to articulate this idea that we can do better. they want to ask different questions. you know, there's this writer, rebecca wrote yesterday, you can pull up the flowers. doesn't mean the spring isn't going to come. spring will come. this movement will system come here and the question is to be creative, smart and the move it forward in ways that reach many more millions of people. >> will it move online now, do you think? >> it already is to a degree. people are still around, trying to figure has to do. we shall see. there will be both political aspects, cultural aspects, online work. you don't know for sure what's

going to happen. there will be an election next year. it will be interesting. if the election is about the 99%, then they will have made a great kwix contribution, which many are proud of having done. as they should be. that said, their first amendment rights still need to be enforced. >> talk about that. mayor bloomberg 4e8d held that news conference listen. listen to part of what he said. >> protesters have will two months to occupy the park with tents and sleeping bags. now they will have to occupy the space with the power of their arguments, he said, now they'll have to occupy the space with the power of their ideas instead of physically. so as you listen to mayor bloomberg say that, what went through your mind? >> he's partly right and he's partly wrong. of course, it's the pouter of the power of their ideas that has captured the day, to a degree, but we live in a country in

which money often trumps speech. supreme court has been largely captured by corporate interests. a good chunk of congress. so it's wrong to say it's merely the ideas. we need to amplify those ideas. it's easy for the mayor to do that. he's the richest man in new york city. the occupiers did it with their physical selves by taking this space. now, they have even said themselves. it's not really about that space. it's about these ideas which are spreading. i'm quite optimistic about what they've accomplished and what they're doing. >> do you think because a lot of mayors made the same move as mayor bloomberg and a lot of police democrats did as the new york city police department did yesterday. do you think this was an orchestrated campaign? >> that's a good question. center intimations it was a little bit. people wait in line in new york. they camp out for a week to buy the tickets to the new "twilight" movie. it's not like we're not used to encampments.

it's when it has political meaning. saying, the top 1% needs to be part of this society in a fair way, that's when it incites the reaction we got yesterday. people need to keep in mind that, you know, this is a big, complicated world we live in. it's actually quite possible for people to have respect of the first amendment rights and deal with all the issues. we're sorry to see how the mayor reacted but there's no question this is going to continue to be a vital, really long overdue part of the american political debate. >> dave cantor, thanks for being here this morning. appreciate it. carol in boston, luns hundr marched to protest new york city. the mayor there saying no plans to give them the boot just yet out of dually square, as long as things remain peaceful. time is up in dallas. the federal judge cleared the way for eviction of protesters near city hall in dallas. dozens camped out about a month now. city officials meet today before they take any action.

in seattle, it turned ugly. police arrests half a dozen people and using pepper spray on protesters last night. occupy seattle says an 84-year-old woman and pregnant woman were hit. police saying they acted after giving several warnings to bro testers blocking intersections during rush hour. still to come this morning, newt gingrich now in the worse place he could be in the gop race. right behind mitt romney. just ask bachmann, perry or cain. 2 aft2 after the hour. facebook, becoming scandalous. we'll tell you why. be right back. [ courier ] the amazing story of whether bovine heart tissue

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welcome back. "minding your business" this morning. trading lower, stock prices, turned out positive on wall street. all three indices finished yesterday in the green because of upbeat reports on retail sales, inflation and manufacturing. approaching d-day in detroit. this evening the mayor will speak about the city's financial crisis. the speech comes days after a report revealed detroit could possibly go broke by july 2012 unless immediate and drastic cuts are made. the postal service reporting an annual loss of $5.1 billion. it may be no surprise in code's digital age declining mail volume is one of the reasons. the other, increase in health care costs for its employees. facebook is working to identify and shut down the accounts responsible for a coordinated spam attack. pornographic and violent images

appeared in some people's news feeds. according to facebook, tricked into copying malicious codes allowing hackers access to their accounts. google is expected to unveil its long awaited music store today. according to the "wall street journal," songz will sell for about dollar and you may be able to let your friends on google, plus listen to the songs you buy. don't forget, for the latest news about your money check out the all-new cnnmoney.com. "american morning" will be right back after this break. ni-i-i-ck. oh... i thought those were put out for me. i did it again. no worries, nick. [ sighs ] say, nick, you must be busy this holiday. oh, yeah, with all the great savings we got going on, it's been crazy. ooh, i got to dash away. customers lining up. ♪ [ male announcer ] this holiday, chevy's giving more. ♪ -why? -why? -why?

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it is 30 minutes past the hour. time for our top stories. a new twist in the penn state sex scandal. an e-mail from mike mcqueary obtained by a newspaper says mcqueary stopped the alleged assault of a young boy by jerry sandusky back in 2002 and he told police about. the account stirred contrast to mcqueary's grand jury testimony. after a rude awakening early yesterday morning, a wall street protesters are allowed back into their home base at new york's zuccotti park but without all of

their stuff. a justify saying no more tents or general rate, aloud. and president obama in australia. 2,500 marines will be deployed in the australian port of darwin by 2014. president obama calling his visit a clear indication of america's commitment to the asia-pacific region. white house correspondent dan lothian traveling with the president joins us live this morning from canberra, australia. it's nighttime. right? >> reporter: that's right. it's still nighttime. i've yet to go to sleep, but this is a country that the president himself pointed out very critical, a long alliance with australia, and also now this move happening because of the growing importance of the region. under this new agreement, starting in the middle of next year, up to 200. up to 250 u.s. marines deployed to the northern part of the country. that number expected to tick up to 2,500 marines part of a task

force, a military task force. there have been a lot of questions out in about, and concerns, about the growing presence, military presence of china in the region, and while some administration officials say that indeed is one of many factors in this uptick of military activity here in australia, the president himself said that china, and fear of china, was not a factor. >> i think the notion that we fear china is -- is mistaken. the notion that we are looking to exclude china is mistaken. >> reporter: now, the u.s. marines will be involved in exercises and training. i should point out already the chinese are pushing back. the chinese foreign ministry spokesperson saying that of this new arrangement it was "may not be quite appropriate" but one of the president's top advisers said that it's not only

appropriate but necessary in dealing with some of the challenges down the road in the pacific, asia-pacific region. carol? >> dan lothian reporting live from australia. hope you get to go to sleep after this. you are amazingly coherent. thanks, dan. it's like a round of speed dating with the gop candidates. former house speaker newt gingrich is surging in recent polls. this after the campaign was declared doa last summer. cnn's political correspondent jim acosta caught up with him on the trail. >> reporter: meet the gop's latest fresh face -- newt gingrich. >> yesterday afternoon in jefferson, iowa, someone introduced me at the front-runner. >> reporter: yes, the same gingrich, once a dead candidate walking now has a shot at the gop nomination, drawing big crowds in iowa, he is candid about his near-death political experience when his entire seen jr. staff abandoned him all at once last summer.

>> reporter: did you feel dead? >> no, desperate but not dead. i've done this 52 years. >> i am the only candidate running who has actually led at the national level. >> reporter: but with gingrich, hue milt hey its limits in assessing what initially went wrong with his campaign he compared himself to two conservative giants. where did you go wrong? >> oh, i think it was a big miss take on my part to try to bring in conventional consultants, because i am such an unconventional political figure that you really need to design a very unique campaign that fits the way i appropriate and what i'm trying to do. >> reporter: gingrich has climbed in the polls by outshining many of his rivals at the gop debates and by selling ideas that sometimes veer from tea party doctrine. for example, gingrich would spend billions on a new brain science project finding cures for alzheimer's and parkinson's. >> the best way to control medicare, defeat the diseases so

people stay healthy. >> reporter: but in nearly the same breath, gingrich rails against the washington establishment. >> the washington establishment model is pain and austerity. >> reporter: despite being a creature of the capital -- for nearly three decades. you're not a creature of washington? >> no. >> reporter: how long have you lived outside of washington since your days as the speaker? >> i haven't. well, i've lived in mclean, virginia, for practical reasons. i did work at the central intelligence agency, work at the pentagon. >> reporter: critics might say you are a creature of washington. >> you can call me anything you want to. all right? none of my policy proposals represent the washington establishment. >> reporter: ultimately, gingrich wants voters to judge him not on his past, such as his previous marital difficulties, but on what his campaign website calls, the new newt. >> reporter: is this because this is the new newt that we're seeing here?

the new newt gingrich? >> go back and get the "time" magazine cover in 1994 where they had me as scrooge holding tiny tim's broken crutch, and the title was, "how mean will gingrich be to america's poor?" one of the things that it led me to be, a caricature. so when people saw me in debates, they said, that can't be newt gingrich, because, in fact, i'm very different. >> reporter: another telling side of gingrich's sudden surge, he plans to open up his first campaign office in iowa next week and has an infusion of campaign cash to work with after raising nearly $3 million in just the last month. jim acosta, cnn, sheffield, iowa. all right. so does the former speaker have the staying pourer? one of his early tests as front-runner right here on cnn. the next republican debate on national security happens tuesday november 22nd at 8 p.m. eastern. candidates take on homeland security and foreign policy,

tuesday, 22nd of november, 8:00 p.m. eastern right here on cnn. still to come this morning, who says bipartisanship is dead in washington? come on. we'll tell you about a new jobs bill that both parties may be able to get behind. and gabby giffords' remarkable recovery from a near fatal gun shot wound. we'll talk to dr. sanjay gupta about the road ahead for the arizona congresswoman. it is 37 minutes past the hour. humanity back to insurance and putting people before policies. aviva life insurance and annuities. we are building insurance around you. it's 4g, so you can do more faster. so, kathryn, post more youtube videos of your baby acting adorable. baby. on it. matt, ignore me and keep updating your fantasy team.

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welcome back. finally something both parties in congress may be able to get behind. a bipartisan jobs bill unveil and capitol hill yesterday. joinings me to talk about the new plan, the bill sponsors, democratic senator chris coonce of delaware and marco rubio of florida, republican. let's start with what's in this. we like bipartisanship. tax breaks for small businesses. also in there regulatory reform. incentives to hire veterans which everyone can get behind, i think, and some measures to attract highly skilled immigrants. i'll tell you something, these aren't exactly groundbreaking. some would call them the low-hanging fruit. is this what it takes? take it piece by piece and find

the things you can agree on first? senator rubio, i'll let you start ngts exactly right. the point is, there are things we disagree on, tax policy, spending policies. big issues that are decided in electio elections. one is next year. we can't sit around and do nothing while people are out of work. let's pass the things we agree on and have an election about the thing wes don't agree upon this bill tried to identify things in the president's jobs plan, the republican jobs plan we had in common and get those done. >> that's point. common denominator between the two. the president had been pushing for these things as well. >> that's right. some of these ideas were borrowed from the president's jobs plan. some from republicans in the house. some from democrats in the senate. senator casey, for example, of pennsylvania was the origin to encourage veterans to become franchise owners and ought tra pra newers recognizing along with several others the skills it takes to be a skill lead get a group of 18 and 19-year-olds to do difficult and

unpleasant things over and over may be the sing things to be a successful franchise operator. common sense ideas from a broad range of backgrounds, but we're putting them out as a billing to because the american people want to see us work together to make progress in growing our economy. >> and growing the economy is the key here, senator rubio. some say this is tinkering around the edges. you've got a real problem in the job market that needs addressed and inaction in washington. people frustrated with congress. 69% say you guys have done nothing to address the problems and break it down by party, 28% blaming republicans, 18% blaming democrats. unep ploim is 10.6% in florida. you've got nearly a million people out of work there. obviously a swing state. are you worried as we close in on these elections more americans are going to blame republicans? senator rubio? >> it's not political calculation. people have been out of work a year, looking at us saying, can you do anything? they pay us to do the job.

this is our job. we need to dliv perp these are meaningful policies. number two is that it will actually, hopefully people will look around and say that didn't hurt too much. what else can we work on together? and three, hope it will send a message back home finally good news is coming out of washington. because i think this gridlock and bickers as much as anything else is having a deep psychological impact on our economy and people's littlingness to invest in the economy. >> and mesereau financial, told they're concerned there could be an effective tax increase coming to a lot of people's paychecks, really a jolt in the wrong direction? >> the pay roll tax holiday is not in this bill. it has a couple proposals like modifying the rnd by some estimates could create hundreds of thousands of jobs. three tax proposals targeted at

small business. things that will help them with expensing california investments with skeaccelerated depickrecia and access to capital, access to qualified employee, access to eno vengs are several invasion, businesses with high growth potential. we pull together a combination ever proposals from lots of sources we think could really make a difference. >> yeah. >> frankly i also think a lack of confidence that congress is able and willing to tackle the real challenges facing our country is one of the big drags on our country. we've lost our confidence. in this bill we're showing confidence in small business owners, in veterans, in inventors and entrepreneurs and that's important for all of the country. >> another thing we're lacking. a lack of demand. the overall company just isn't growing well enough nap allows riffs between democrats and republicans with different views thousand get it jump it started

allowing the riffs to grow and become troublesome pi wunt to ask about the super committee, guys, a week to cut a deal. seven days. talk about bipartisanship pap real show of bipartisanship. a set of numbers. 78% of people don't think the committee will have a deal done by wednesday. senator rubio, will they get it done? >> how do we know? that's why e-voted against it. i'm not apart of it, you or senate coonce. e public's not engaged. we have no role to play in it. vote yes or no but not amend anything. they're working hard, i wish them the best. it's good for the country. hope they can. >> dealing with deficit and debt is one of biggest problems facing our country. the super kpt has an expedited process. able to get anything they come up with by a majority that meets think goal, they can get to the floor for a vote, past what has frankly been a very distinction

senate this year. way too many filibusters and fights over ammdments and not able to move forward common sense proposals. i do think the super committee in the end will come up way deal. i've noticed in my one year here we manage to pull together deals in the very last hours. the american people can't afford for us to fail to come together way big, bold and bipartisan deal. i'm optimistic the super committee will deliver on their mandate. >> the rest of the world is getting nervous, so are america's investment bankers. people who lend up money when we come up at the last second solving near-term problems. we'll see. thank you both for joining us. nice to see you today. thanks. >> thank you. >> thank you. gives you hope. huh? >> yeah. we'll see. still to come this morning, we're getting our first upclose look at how far congresswoman gabrielle giffords has come since the near fatal shooting ten months ago. dr. sanjay gupta looks at how

far she still has to go. today's "romans' numeral." 903. a special day for coach k. that's the hint. it's 47 after the hour. vegas baby! maybe we should head back to the dealership first? vegas! no, this is a test drive. vegas! [ male announcer ] it's practically yours. but we still need your signature. volkswagen sign then drive is back. and it's never been easier to get a jetta. that's the power of german engineering. get zero first month's payment, zero down, zero security deposit and zero due at signing on any new volkswagen. visit vwdealer.com. and started earning loads of points. you got a weather balloon with points? yes, i did. [ man ] points i could use for just about anything. ♪ keep on going in this direction. take this bridge over here. there it is. [ man ] so i used mine to get a whole new perspective. ♪ [ male announcer ] write your story

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he did go to plolice about it. and protesters can return to zuccotti park but can't camp out overnight. and president obama is in australia. 2,500 means will be stationed at a base in northern australia by 2013. and afghan leaders are discussing the country's long-term relationship with the united states and possible peace talks with taliban insurgents. mario monti has officially been appointed prime minister of italy. monti is convinced his country can overcome its debt crisis. he presented his new government to italy's president this morning, including a list of new minister. you're caught up on the day's headlines. "american morning" back after a short break.

because i couldn't bear to do another story about bank fees, this morning's romans numeral is a number in sports news. the number 903, the number of wins by duke basketball coach mike krzyzewski. they call him coach k. >> it's easier that way. >> last night's win makes him the winningest men's coach and that's a number we can all get behind this morning. >> he beat his mentor, bobby knight of indiana. gabby giffords' amazing recovery from a near fatal gunshot wound ten months ago. >> giffords and her husband, mark kelly, talked with diane sawyer about the highs and lows, including the moment gabby learned on what happened on that fateful day in january. >> whether mark told you what

happened. >> i cried. died. >> sad. >> sad. oh, sad. a lot of people died. >> it hurts your heart. >> yes, yes, yes. tough, tough, tough. >> dr. sanjay gupta joins us live from atlanta now to talk about her progress. you can see in the clip, the conversation is still difficult for her. will that get better? >> most likely it will. she had such strong improvement, quick improvement early on that bodes well in terms of where her speech will end up. all of her doctors seem to agree, it's not going to be 100%, but a lot better than what you heard just there. when you talk about speech, sort of categorizing the two areas. receptive speech and expressive speech. receptive is understanding communication and expressive is expressing yourself. she has always been able to

understand well, just expressing. she had a little audio announcement yesterday from her office a couple weeks after the clip. take a look at this for comparison. >> this is gabby giffords. i am miss you. i miss tucson. the mountains, the blue skies even the heat. i'm getting stronger. i'm getting better. it's been a hard year for all of us. >> wow. well, you know, i'm just curious -- >> improved compared to before. >> it is she is improved in that short time. she has until may to decide she will run for office and i think many people are wondering, will she be able to do that that soon? will she need, you know, her, you know, her entire speech repaired before she goes back to work possibly?

>> well, you know, first of all, in terms of whether she actually will do it or not, who knows for sure. i think that what you would say most neurologists and rehab doctors would say is that 18 months is when you start to really get some of your best improvements. you can improve after that. but that is sort of the peak time. she may have significant recovery between now and may because, you know, right now is about the 10 or 11 month mark from when the accident occurred. she could have significant improvement. as far as what she needs, you heard the recognition of word, word finding difficulties that's been problematic. if she is reading in that clip that you just saw, she strings together sentences quite well. >> mark kelly said optimism is a form of healing. there is some truth to that. at least the point of view is important, as you point out, a long recovery path. >> i think that's more than anecdotal now. people have believed that instinctively but optimism does all sort of things in terms of

your healing. that's worth pointing out. she had excellent care, as well. resources from the moment this happened until now. excellent rehab and that's part of the significance of her recovery, as well. >> dr. sanjay gupta, thanks for joining us this morning. we appreciate it. >> you got it, thank you. ahead in the next hour, taking the occupy out of "occupy wall street." will it make the movement stronger or kill it off? do they need a leader now more than ever? instead of getting to know you they simply assign you a number. aviva is here to change all that. we're bringing humanity back to insurance and putting people before policies. aviva life insurance and annuities. we are building insurance around you.

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back to fight another day. i'm carol costello. protesters returning to the park where it all started without their tents and they're not happy. red alert. i'm christine romans. a compelling new book views america is at war with china. only the chinese are the only ones fighting and the u.s. doesn't even know what to do. it's an economic war with huge implications. can america start competing again and win on this "american morning"?

and good morning to you, it's wednesday, november 16th. ali has the day off. welcome to "american morning." >> up first, they're back. "occupy wall street" protesters are back in upper manhattan's zuccotti park. they're not as comfortable. protesters who were cleared out of the park in that surprise raid by police hours earlier, the judge ruled they could come back, but without tents, tarps, generators and camping equipment. earlier on "american morning," we spoke to dan canter executive director of the working family's party. he had a mesage for the city. >> will this galvanize the movement or kill it? >> we should back up two months ago and nobody in america was really talking about the issues of inequality, of the 99%. it's some pleasure while what the mayor did was quite wrong. no reason to go into the dark of

night to trample on the first amendment rights of the protesters. in fact, in some ways, the doesn't matter. they have already won and they already changed the conversation in america. it's clearly going to continue. many people were saying yesterday you can evict an encampment, but you cannot evict an idea whose time has come. this idea that we need to have an economy that works for everyone, that the country is seriously on the wrong track has spread. and there are millions of people who now, who understand this. >> deb feyerick is live in lower manhattan. deb, we're hearing there are new flare-ups in the crowd right now. tell us about it. >> yeah, carol. not a lot of people here, but tensions really are running very, very high. you can see some of the private security guards dressed in the yellow there. any time anyone tries to set up a tent or put down a sleeping bag, they're immediately taking it down. matter of fact, one demonstrator who appeared to be breaking up a fight, in fact, he was arrested by police and taken away .

protesters are telling me they believe that people are being sent into the park in order to sort of ferment trouble. stir things up. they don't know who's sending them. they have their suspicions. with fewer people, more security guards, fights just seem to be breaking out. one businessman did tell us he, in fact, stopped by this place many times and had never seen a problem and was very surprised at the level of tension here at zuccotti park. again, the new york supreme court said that people can be here, park is open 24 hours. however, they cannot bring tents and they cannot bring sleeping bags and the security people here, the private security, they are really cracking down on that. one man tried to put up a string with one of these sort of metallic covers for warmth. in fact, that was taken down almost immediately, carol. >> thank you, deb feyerick reporting live for us this morning. so, the victory for protesters north of border.

a judge siding with the protesters that set up near the financial district. they were put on notice yesterday, but a last-minute injunction stopped police from moving inned at midnight. >> the judge cleared the way for evictions near dallas. dozens of people camped out there for about a month. city officials will meet today before any action is taken. crackdowns in half a dozen cities this week. so, what is the future of the "occupy" movement? does it have one? here to talk about that sally cohn, her latest commentary appears on cnn.com. welcome, sally. >> thank you for having me. >> the big question this morning, if you take the occupy out of "occupy wall street" is it still a movement? >> i think it's an important distinction between the "occupy" tactic and the movement of the 99%. in fact, in that case, i think we're just seeing the first percent of the movement of the 99% to have true economic opportunity and broadly shared

prosperity in this country. it's just the beginning. >> what form will the protests take now? >> that is a great question. unfortunately, my crystal ball was taken from me at zuccotti last night. i can't be sure. i think we'll start to see three trends emerging. first of all, the occupation tactic fall away. look, it's really cold outside. they're a pain to maintain and they do bring all kind of problems from folks who are not necessarily supporting the movement but looking for help and have other troubles need addressed. >> it attracts perhaps homeless people -- >> and certainly. no one wants to see people getting hurt. that's counterproductive to the message of what the protesters are trying to achieve. they'll start experimenting with new tactics. messy at first. we'll see a lot of misses and a few hits, but we'll see them start to find other ways to engage the broad majority of americans who support what they are doing but aren't necessarily going to go sleep under a plastic tarp. second, we'll start to see some leaders emerge. >> who might those leaders be?

>> again, i lost that crystal ball and i don't think we know and i don't think they know. you have to remember that social movements, this is one, they take a long time. they take a long time to develop. you know, early on, it's not clear who, you know, what the issues are necessarily going to be and the movements or the tactic. but leaders will, in fact, emerge. this is not a leaderless movement, it is a leaderful movement. there are thousands of potential leaders and i think it's going to be a mix of opportunity and cereen dipty that some of these people will emerge to be spokespeople to bring the conversation to the larger. >> embrace politician. something the movement has beloathe to do. >> the third thing that will happen is a faction. a sort of a breaking off of the more, for lack of a better word, militant groups. the ones that are still, for instance, trying to hold the ground at zuccotti park and who still have been more confrontational with police, et cetera, versus people who see this is a broader movement.

you know, the vast majority of americans support it. not just people in new york city but idaho, indiana and find ways to move from the occupation tactic to a much broader movement that, indeed, does thing s like look at the political system. how will we undo the laws. that's where they're going to move. >> so, let's talk about the message. and i think there have been many messages and the big criticism of this group. they're all over the place. has one message emerged, despite the fact that so many people are talking about so many different things? >> yeah, there's no question. it's true. you know, two months ago, in this country, we were talking about debt. we were talking about how to slash medicaid and medicare in order to give more tax breaks to the rich. and, now, we're talking about creating jobs and we're talking about run away inequality and we're talking about the fact that americans are working harder and harder for less and less money.

they've changed the conversation. that wasn't easy and that's a sign of their success. you know, going forward, i think that there is a question about the political system as you raised. how do you actually get the corrupted influences wall street out of our politics and give our politics back to the people. you'll start to see more specific issues around issues, but in general, look, inequality is wrong and unamerican, they got that message out loud and clear. >> you don't believe the movement has been heard at all by some fair criticisms that have been out there. you know, that, you know, confronting police when you didn't really have to and some of that element moving in. that criminal element moving in that made the protesters look really bad and you have to admit that some on the right have painted the occupy protesters as not very nice people, as crazy people as people who should just go away. >> two reactions. so, first, you know, when early americans were throwing boxes of tea from private corporations into the boston harbor, they were initially labeled as

criminal elements, too. so, history does tend to look more favorably on protests and see the protesters as justified and as patriots rather than problems. number one. but number two, it's also a little bit more complicated. a few people inside, a few yahoos who want to make trouble and confront the police, et cetera. some of the violence we've seen has to deal with police provocation and in places in oakland, the occupy movement was layered on top of a very deep and very justified problematic relationship between communities of color and the police in oakland who have a history of overuse of force. so, it's a little more complicated. >> sally kohn, thanks so much. if you'd like to read more on sally kohn's commentary, head to cnn.com/opinion. it's a great article. thank you so much for being here. forget about wall street for a second, what about china? we'll speak to authors. are we already at war with china? an economic war and why is the u.s. so clueless about it.

developing right now, we're hearing reports a bullet hit and smashed through a window at the white house. it smashed through part of the window because it was stopped by a second layer and an additional round of ammunition was found outside the window yesterday. the secret service has not confirmed whether this is connected to reports of gunfire near the white house on friday. witnesses said they heard shots and saw two speeding vehicles in the area. an ak-style rifle was also recovered. the secret service, atf and the d.c. police department are working together to find a man who is believed to be connected to last weekend's incident. president obama is in australia right now meeting with prime minister julia galard. widen the u.s. military presence there. that means 25 marines will be stationed at a base in northern australia by 2013. the president also warning china to start playing fair when it comes to free trade.

>> the main message that i've said not only publicly, but also privately to the chinese is that with their rise comes increased responsibilities. it's important for them to play by the rules of the road. there are going to be times when they are not. and we will send a clear message to them that we think that they need to, they need to be on track in terms of accepting the rules and responsibilities that come with being a world power. >> the president said the u.s. doesn't fear china and welcomes a rising peaceful china. it's a brief trip to australia. the president leaves later tonight. it's coming down to the wire. live pictures now from capitol hill. seven days and counting until the so-called supercommittee has to reach a deal to come up with at least $1.2 trillion in budget cuts. if there's no deal, we're talking across the board

spending cuts. >> can they make a deal? a brand-new poll shows americans aren't very confident that they can do it. according to a cnn/orc survey. 78% of americans say it's unlikely the committee will get a deal on time. still ahead, we're tracking severe storms right now and a possible tornado this morning. jacqui jeras will have a live update for you, next. a penn state assistant coach fighting back. mike mcqueary who reportedly saw jerry sandusky molest a child says he stopped the attack and went to police. it's worth about $600,000, but we're looking into reports this morning that joe paterno sold his home to his wife for $1. and fans of denver broncos quarterback tim tebow created custom juries. are they brilliant or bla blasphemous? you decide. tltltltle emotional here?

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this song makes me sad. good morning, atlanta. it's cloudy, 67 degrees. thunderstorms expected later today with a high of 74. >> sad, carol. two more days until friday. you have a lot to get through. jacqui jeras is in the extreme weather center. good morning, jacqui. >> you guys just totally relaxed me. >> i feel like going to sleep now. >> come on, the day is starting. ramp it up! >> it can get stormy in atlanta later today. looks kind of nice out there now, little bit on the gloomy side. you can see the tops of the buildings, once again. you know with those low, overcast conditions probably some delays at atlanta jackson hartsfield airport. none right now, though. glass half full. to the west, severe thunderstorms and four reports of tornadoes already this morning. some southwest of new orleans and then, also, one around laurel, mississippi. we do have one warning still in

effect right here in alabama. this is for meringuo. this is a doppler radar indicated tornado, but some touchdowns and some damage today. so, really take these very seriously. get to your safe place. the lowest level of your home away from doors and windows. there you can see, the one warning that we do have in effect. here's laurel, by the way, the one that caused damage earlier. you can see the one moving up towards that area. we do expect that threat to move eastward throughout the day. we'll watch atlanta and we'll watch columbia and watching raleigh, as well as charlotte for that threat and that's probably not going to happen until after the noon hour here. damaging winds possible along with large hail and a few tornadoes are going to be possible, as well. for today, now, we've got a big storm front here all across the east coast and we're going to be getting wet in washington, d.c., philadelphia, new york it has been sprinkly there on and off for today. but we don't expect the thormz here to be severe. all the energy coming in with an

upper level disturbance across the southeast. so, that's why we have the severe threat here. not to mention that we have so much moisture and so much humidity in place. man, it's feeling more like springtime conditions here with as moist as it is. on the back side, some very cold conditions. our temperatures dropping big-time here. say good-bye to the above average temperatures as the cold air moves in. only in the 30s for you today in minneapolis and out west we have a very strong cold front here and that is going to bring wind gusts up to 60 miles per hour along the oregon coast and in the cascades talking one to two feet before all is said and done. 37 in minneapolis and 63 in dallas and that cold front moving through here and check out the 85 degrees in new orleans. i've got some pictures i want to show you from the indiana area. a town called paoli, indiana. the same storm system that hit mississippi today, that hit indiana yesterday. it is likely a tornado.

waiting to hear back from the national weather service as to whether or not they're going to confirm that. but you can see a lot of damage. you know those long span buildings, those roofs go right away. this is why we tell you to get into a strong, sturdy structure. you can see they're already cleaning up from that system. another day of severe thunderstorms and we'll continue to track it. back to you guys. >> jacqui jeras, thank you so much. duke basketball coach mike krzyzewski setting the record for most wins. 903 breaking his tie with his former mentor, bobby knight. justin verlander took home the american league cy young award last night. he won the triple crown last season leading the league in wins, strikeouts and worldwide average. the first starting pitcher to win the league mvp since 1986. >> he deserves it, too. some fans of broncos quarlterback tim tebow wearing

their faith on their shoulders. custom tebow jerseys that replace his name with the name jesus. tebow who is very vocal about his faith has legions of loyal fans, but critics are saying see they're blasphemous whether they are or not. >> speaking of tim tebow, just in to cnn, "people" magazine named the sexiest man alive. >> tim tebow? >> no, he is sexy, too. actor bradley cooper who came by here earlier this year and i couldn't talk. we actually stopped talking. he was a little disconcerted, actually. >> as were you. >> actually, yes. sexiest man alive, bradley cooper. there you go. >> i'll dig up that tape and watch it. investors a little nervous this morning. a check of the early markets, next. apple names a new chairman of the board filling the vacancy left by the death of steve jobs. we'll tell you who.

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it's 22 minutes after the hour. minding your business this morning. greece's new government is expected to survive a vote this morning. tensions pretty high, running real high after union workers cut off power to the health industry to protest a new tax. right now u.s. stock futures pointing to a lower open this morning. today investors looking at new reports on inflation and industrial production. farmland, wow, what a good investment that's been. prices for farmland in this country up 25% in the third quarter. the biggest one-year jump in 30 years. the higher land prices are fueled by higher corn, soybean, cattle and hog prices. approaching d-day in detroit. dave bing will speak about the city's financial crisis and that comes just days after a report

revealed the city might go broke by july 2012 unless immediate and drastic cuts are made in detroit. facebook is working to identify and shut down the accounts responsible for this coordinated spam attack that caused pornographic and violent images to appear in some people's news feeds yesterday. they were somehow tricked into copying malicious codes into their browser bars and that allowed hackers access to their accounts. apple names a new chairman, the board's co-director, arthur levinson previously held by company's co-founder, steve jobs. bob iger, disney's ceo, will join the board. google is expected to unveil its long-awaited music store today. songs will sell for about a dollar and let your friends on google plus listen to the songs you buy. up next, more confusion in the penn state scandal. assistant coach mike mcqueary who said he saw jerry sandusky

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this is the guy that is the key witness for all three cases. he's a key witness against jerry sandusky because he was an eyewitness to a sexual assault and really the soul witness against two penn state officials charged with perjury and failure to report. new questions this morning about the penn state assistant who had blew the whistle on jerry sandusky as mike mcqueary speaks out for the first time on this "american morning."

and welcome back to "american morning." top stories. new flare ups at "occupy wall street" after a rude awakening yesterday. wall street protesters were allowed back into their home base at new york's zuccotti park, but without all of their stuff. a judge saying no more tents or generators allowed. president obama finally making good on his pledge to visit ausz trailia after canceling two previously scheduled trips. earlier this morning, he announced an agreement to expand america's military presence in that country. by 2013, 2,500 u.s. marines will be stationed at a base in darwin, australia. we're hearing reports a bullet hit a window at the white house before it was stopped by a second protective glass. the secret service hasn't confirmed whether this is connected to reports of gunfer near the white house on friday.

witnesses said they heard shots and saw two vehicles speeding in the area. an ak-47-style rifle was also discovered. a live picture of atlanta where severe storms are moving through the area right now and throughout the day heavy rain expected across the southeast. already had reports of one tornado in louisiana. in indiana, people are still cleaning up after a line of strong storms moved through last night, damaging homes and businesses. a key figure in the penn state child sex abuse scandal speaking out for the first time and, apparently, fighting back. assistant coach mike mcqueary said he did ask when he witnessed jerry sandusky's alleged rape of a young boy in 2002. mcqueary says, "i did stop it. not physically, but made sure it was stopped when i left that locker room." mcqueary claims in that e-mail he went to police. he also writes, no one can imagine my thoughts or wants to be in my shoes for those 30 to 45 seconds, trust me. the e-mail seems to contradict

mcqueary's grand jury testimony, at least the summary from the grand jury of that testimony. mcqueary also made his first public comments since the scandal broke. these are comments he made to cbs. >> do you have any idea when you think you might be ready to talk? >> this process has to play out. i just don't have anything else to say. >> okay. just one last thing, just describe your emotions right now. >> all over the place. just kind of shaken. >> crazy? >> crazy. >> you said, what? >> like a snow globe. >> mcqueary has been placed on administrative leave from the university. >> still many unanswered questions about the penn state sex scandal and perhaps among them what penn state officials knew about the claims against jerry sandusky and when they knew them. turns out the university is exempt from pennsylvania's open records laws and protected, in effect, by a legal law of

silence. drew griffin has more in a cnn exclusive. >> carol, it's the type of information we would normally get in the united states from any public institution, especially a police department. the records, the incident reports, all the information you rely on to get the facts who knew what when and where. but penn state you will not find that because penn state got itself an exemption from this state's open records act. at the same time, in 2000/2000 sath when the legislature was discussing this new law, penn state's president personally went to the legislature and asked to be exempt to make sure the records were kept private. >> what that means, in essence, is that while every other commonwealth agency, governor's office, police departments, townships, school districts are subject to this law and required to provide public record. penn state is exempt. that came as a result of a series of lobbying efforts through the house of

representatives that was taking a look at rewriting pennsylvania's right to no law, which was really among the worst in the nation and, at that juncture, the president of penn state was one of the key lobbyists testifying before the house committee on, i believe it was august 7th, 2007. seeking an exemption for penn state. >> carol, we did try to reach graham spanier at his home and we did not get an answer from the former penn state president. but we know what he told the legislature when he was seeking this exemption. he wanted penn state to be exempt from the records because he needed to protect the competitiveness of the university. he was concerned about the cost of compliance and a huge bureaucracy would be built to answer questions and open those public records. looking back on it now, it has a whole different look. carol? >> thanks, drew. mike mcqueary's new e-mail not withstanding. heavily criticized for not taking immediate action to protect the child after apparently witnessing jerry

sandusky's sexual assault. earlier on "american morning," we asked jeff garder why someone who sees something so horrific might not act. >> it's traumatic. you better believe it's traumatic to the child what is going on, and there's also, i'm not making excuses for this individual, mcqueary, but there's also a trauma in seeing something so horrific and heinous going on that you're frozen and you're not doing what you should be doing. >> and gardere says mcqueary has to live with the fact that if he had done more, other alleged victims would have been spared. the "new york times" is reporting that joe paterno transferred full ownership of his home near the campus to his wife, suzanne, for a dollar, plus love and affection it says on the deed. the 84-year-old paterno did it in july, months before the child sex scandal that led to his firing. the couple previously had joint ownership of the home, which they bought in 1969 for $58,000.

the fair market value today is more than $594,000. it's unclear why they chose then to transfer the ownership or why they transferred that ownership, carol, but the man is 84 years old and he likely has estate planning and a trust. so, these may have been moves into and out of that trust. we just don't know. also, paterno's replacement, interim football coach tom bradley is denying rumors that the team would decline a bowl bid at season's end. bradley says they have been assured that is not the case and he also said the possibility of penn state not playing football next year has not come up. the nittany lions have an 8-2 record in the big ten and still in contention for the conference title. still ahead, forget protesting wall street, our next two guests are warning that china is owning us. it's china has occupied the united states. but it's not too late if america can get in gear and start to compete. we'll talk about the relationship between the u.s. and xhin china and how the u.s. can get its act together.

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good morning, new york city. it's cloudy and 57 right now. you're going to get another degree, 58 and full on rain later on. so, take that, lady liberty. welcome back. as america sits in a sluggish recovery, china is really throwing its money around. becoming a major player in the world economy. becoming many of the places, the place that some of our allies turn to when they're in trouble. our next guests are warning that the u.s. better watch out, but it's not too late at the same time. steven lee is author of "red alert." john doggen at the university of austin, texas. when we are the foreigners. what chinese think about working with americans. both of you are experts on china and have been there and know this subject better than anyone. thanks for both of you. i want to start first with stephen, the president making his first trip to australia, nouncing an increased military presence for the united states there. something seen as a counterbalance to china in the region. how badly does the united states

need to counterbalance china in its own backyard, stephen? >> i think china, i think the united states absolutely has to counterbalance china. i think china, christine, has basically seized control of vital industries and what they're doing right now is to make sure that they continue to control those industries and among those industries are solar. they've gone from no where to controlling 60% of solar energy. they have absolute total dominance in wind by virtue of their control of rare. they basically have access to copper, which right now doesn't appear to be a scarce commodity. i'm quoting goldman sachs which said that copper is likely to be an unimaginably highly priced commodity within the next couple of years. that means that it is becoming ever scarce. china gets it. >> you say we're at war with china. only china is the only one that knows we're at war.

we're kind of sitting back. >> my analogy, i know it sounds tough. this would libe like in the 194 being fully aware that germany is developing an atom bomb and we put the project on hold. if we don't have access to copper, wind, solar, they're on the verge of taking control of desalinization which is critical for fresh watter. >> major investments and how to refocus. doug, let me bring you in. how many times have you been to china? >> oh, probably about 15, 20 times in the past decade. >> so, does the united states need to completely reboot and start competing again? we've lost this economic war. where are we? >> we absolutely need to complete. i disagree completely with stephen that china is taking control of stuff. they are doing what they need to do to improve the quality of life for their people. it's not their fault. the idea that they're taking control of the sun, the wind, of the ocean, it's just absolute

garbage. what they're doing is competing. what we're not doing is competing. and we're blaming them instead of blaking ourselves. we need to get off our butts and learn how to compete more and stop whining. stephen, you've come up with some very good data about what's going on, but to blame the chinese instead of blaming us just doesn't make sense. >> i did blame us. if you listen to xablthly what i said, i said it would be like knowing that germany's developing an atom bomb and we're doing nothing. the chinese are doing -- hear me out. you totally misunderstood what i'm saying. >> i am looking at the title of your book and the title of your book says they're threatening america's prosperity. it's like we're at war with them. >> you're making a fight out of no fight. i am saying the chinese are doing exactly what they should be doing to secure their own prosperity. they have absolutely nothing against us. and if we were the same, in the same position, as the that's

exactly what we should be doing. get off our butts and do exactly what they're doing. they don't have anything against us. they're not aiming to beat us militarily. china cares about only one group of people and guess who that is? that's china. >> john, let me ask you something. you have china,eric carrier and china spending all this money to modernize and update and upgrade its military. with the stated goal of controlling its own backyard. china has economic interests and political interests around the world, but don't really completely mesh with american interests. and a lot of money, american dollars, to be frank, to push its own agenda. so, should the united states have a more, a more intertwined, economic and defense policy towards china? >> you know, i believe what we need to do as americans is that we have to be competitive. we have to grow our economy more

actively. but in terms of defense and china. how would we feel if the chinese opened up a base in mexico? i think we need to understand that the people who need to be concerned about the defense of asia are the japanese, the koreans and the indians, not us. >> the chinese are, i will tell you something, the chinese are buying up chinese owned companies, state-owned companies are buying up huge shipping ports. the choke holds and different places around the world. yeah, you could see the strategy around the world. >> but look at this as an example. china's infrastructure in africa is so strong that when a barrack comes in and buys a major company they don't bid. all that copper has to go to china anyway. we're fighting a war in afghanistan. we're fighting a war in afghanistan and they're mining copper in afghanistan. get real. i mean -- >> yeah, you know. it is real. but the point is, whose fault is

it? >> ours. >> we were in africa way before they were. >> we're green. >> you have a great book, but the problem i have is your title. i mean, you have your doctorate in psychology and you know the value of words. red alert, how china's success is threatening america's prosperity. that is so inflammatory. that's your title. >> that's exactly true. >> i think where you both agree, though. john, you tell me if i'm wrong. we're at a point here where america needs to up their own game. john, you like to use sports analogieies a lot. in this country we're talking about spending money around the edges for payroll tax holiday and in china they're spending money to invest its infrastructure. >> we're borrowing $1.2 trillion from the chinese to subsidize our deficit spending. borrowing $1.2 billion from the chinese right now, according to the u.s. treasury. that's insane.

>> john, in defense of my title, this is about the third or fourth topic i have written on resources and our crucial need to develop things and they made no impression. if we realize america needs someone to focus on and, yes, you're absolutely right. the chinese have nothing against us. i love the chinese. i think that they're an absolutely brilliant civilization. that's not the point. the point is by building up their own country and providing a 21st century for them, there will be nothing left for us unless we get off our haunches and really start manhattan projects for this manhattan projects for that. that is the point. >> guys, last quick thought, john. >> agree. >> i know both of you are students of the relationship and the way the u.s. is going and the amazing strides that china has made. it's growing at 8% and u.s. growing only at 2%. certainly doing something right in terms of driving their economy. john doggett and stephen leeb.

gentlemen, thank you. we'll have this debate, again. morning headlines, next. 46 minute after the hour. three years from now, a 2011 ford fusion is projected to be worth more than a 2011 toyota camry. any thoughts on this news? are you sure? i'm absolutely positive. fusion is projected to hold its resale value better than camry. can i help you? yeah, can i get a full-sized car? for full-sized cars, please listen to the following menu. for convertibles, press star one. i didn't catch that. to speak to a representative, please say representative now. representative. goodbye! you don't like automated customer service, and neither do we. that's why, unlike other cards, no matter when you call chase sapphire preferred, you immediately get a person not a prompt. chase sapphire preferred. a card of a different color.

(phone ringing) chase sapphire preferred, this is julie in springfield. 13 minutes until the top of the hour. markets open in about 45 minutes and right now stock futures reporting to a lower open as investors brace for more political developments out of europe. motor city's motor mess is front and city.

dave bing will talk about the city's financial crisis. the speech coming just days after a report revealed the city could possibly go broke by july 2012, unless immediate and drastic cuts are made. americans apparently are not very confident in the so-called super committee. according to a new cnn/orc poll, more than three-quarters of americans say it's unlikely the committee will get a deal in on time. president obama meeting with australian prime minister julia gillard. announcing a plan to widen the u.s. military presence there. 2,500 marines will be stations at a base in northern australia by 2013. we're hearing reports a bullet hit and smashed through a window at the white house before it was stopped by a second pane of protective glass. a second bullet was found yesterday on the grounds near that window. officials won't say if the case is connected to reports of gunfire outside of the white house on friday night. in an e-mail, penn state assistant coach mike mcqueary said he did act to stop jerry

sandusky's alleged child rape in 2002 and he did talk to police, not just joe paterno. mcqueary writes, i did stop it, not physically but made sure it was stopped when i left that locker room. that seems to contradict his grand jury testimony. duke basketball coach mike krzyzewski making history. he set the record for the most wins. the win 903 of his coaching career breaking a tie with his former mentor, bobby knight. after all the speculation, "people" magazine has announced bradley coopers a the sexiest man alive. the 36-year-old actor telling people "i think it's really cool that a guy who doesn't look like a model can have this title." that's the news you need to start your day. "american morning" back after a break.

welcome back. if herman cain becomes president, henry kissinger would have been his top choice as secretary of state. cain says the 88-year-old nobel peace prize winner turned him down when the two had breakfast a few weeks ago. he told cain he is perfectly happy with what he's doing right now. >> and he's 88. the iowa caucuses are just seven weeks away and they're up for grabs. look at the new bloomberg news poll. republicans in iowa were asked to pick a nominee and herman cain finished on top with 20% of the vote. ron paul, mitt romney and newt gingrich all within three points of the lead making it a statistical four-way dead heat.

>> so, who saw that coming? after rick perry's flubs and the herman cain scandal, former house speaker newt gingrich back in the mix. will voters buy what he's selling? the new newt. jim acosta caught up with him on the trail. >> reporter: the latest fresh face, newt gingrich. >> someone introduced me as the frontrunner. >> reporter: yes, the same gingrich that was a dead kbt walking now has a shot at the gop nomination, drawing big crowds in iowa he is candid about his near death political experience when his entire senior staff abandoned him all at once last summer. >> i felt desperate. i didn't feel dead. i have done this for 53 years and the two hardest months of my career were june and july. >> i'm the only candidate running who has actually led at the national level. >> reporter: but with gingrich, humility has its limits.

in initially assessing what went wrong with his campaign, he compared himself to two giants. where did you go wrong? >> i think it was a big mistake on my part to try to bring in conventional consultants because i am much like reagan and margaret thatcher. i'm such an unconventional political figure that you need to design a unique campaign that fits the way i operate and what i'm trying to do. >> reporter: gingrich has climbed in the polls by outshining many of his rivals at the gop debates and selling ideas that sometimes veer from tea party doctrine. gingrich would spend billions on finding cures for parkinson's. >> defeat the diseases so people stay healthy. >> reporter: but in nearly the same breath, he rails against the washington establishment. >> the washington establishment model is pain and austerity. >> reporter: despite being a creature of the capital -- for nearly three decades.

you're not a creature of washington. >> no. >> how long have you lived outside of washington since your days as speaker? >> i haven't. i mean, i lived in mcclain, virginia, for practical reasons. i did work at the central intelligence agency and i did work at the pentagon. >> reporter: but critics say you spent -- >> you can call me anything you want to. all right. none of my policy proposals represent the washington establishment. >> reporter: ultimately, gingrich wants voters to judge him, not on his past, such as his previous marital difficulties, but on what his campaign website called the new newt. >> is it because this is the new newt that we're seeing here? the new gingrich? >> go back and get the "time" magazine cover in 1994. where they had me as scrooge holding tiny tim's broken crutch. the title was how mean will gingrich be to the poor? one of the things media did is

created a caricature of me so when people finally saw me in debates, they said, that can't be newt gingrich because, in fact, raising nearly $3 million in just the last month. jim acosta, cnn, sheffield, iowa. >> a reminder for you, cnn is hosting the next republican debate on tuesday, november 22nd at 8:00 p.m. eastern. wolf blitzer will be the moderator with the folks on national security. tuesday night on cnn. it's five minutes until the top of the hour. we'll be right back. quaker oatmeal is a super grain. ♪ it gives me warmth. ♪ [ boy ] it gives me energy to help me be my best. quaker oatmeal has whole grains for heart health.

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going to be a nasty day. severe thunderstorms moving through the area, maybe right now, maybe later today. but at least it will be warm. 74 degrees. >> i know, but, you know, in hawaii it's always beautiful weather. finally this morning, must-see video. hillary clinton getting a little surprised trip on her trip to hawaii. check this out. okay, so, that was a guy holding a tiki torch holding only a loincloth sprinting behind the chief of secretary. it really cracked her up. we're not sure what that guy was doing or what he was doing there. maybe he was just going to light the tiki torches. i don't know. >> maybe he had a special message for our secretary of state. >> it's unclear "occupy aloha" on his cloth. we couldn't get that close. >> funny picture, though. i just like looking at it. that does it for us