another deadly shooting at virginia tech university. two people are dead. an officer and the apparent gunman, and new emergency alert system put to the test. we have a deal. leaders of the eu crisis say they have a plan to save a

continent. so how are stocks reacting and why isn't britain onboard. and iran shows off what it claims is a top u.s. secret drone, but is it the drone or dummy? some say iran may be pulling a bait and switch on this "american morning." -- captions by vitac -- www.vitac.com and good morning to you. happy, happy friday. it is december 9th. >> carol's favorite day of the week. >> except for saturday and sunday. >> ali off, i'm carol costello along with krrm krrm christine this "american morning." new information on yesterday's deadly virginia tech shooting. ballistic tests are back and police confirming that both people were killed by the same gun in an apparent murder/suicide. police say a gunman shot and killed an officer at a traffic stop and apparently turned the gun on himself after a chase. this all happening nearly five years after the deadliest campus shooting in u.s. history took

place there. >> the police pulled up, and they opened his car door and had they hoped it, he just fell out towards the ground, and then they immediately started reviving him, and i guess the officer didn't make it, because they just covered him with a sheet. >> oh. and changes made after the tragedy put to the test yesterday. blocking down campus and using a high alert system warning students and faculty to stay indoors. the alert going off minutes after the shots. the all-clear given after about four years. >> the shooting reports have been given to the police department. so we feel confident that the situation is under control at this time. >> virginia tech police have identified the murdered officer as derek crouse, he's 39 years old, married with five children and stepchildren.

athena jones joins us now live with the latest from the campus. athena what was the university's response like this time around? >> reporter: well, good morning, christine. by almost all accounts it wasn't nearly -- much better than it was four years ago in 2007. yesterday alerts went out over a text, over e-mail. there were postings to the school's home page. there were tweets, and so everyone on campus was kept abreast of the situation, and all of the developments through the course of the day, we were all following it. so they handled it much better than 4 yaf nears ago when the school was criticized for not working quickly enough for the alert that left 32 people dead. >> we just heard the sound bite of the shaken student talking about it. how are students reacting to this? >> reporter: certainly during that four-hour lockdown there was a lot of concern, given the past. given what's happened in the past here. we had a chance to talk to a student who was in the cafeteria

that whole time. she'd gone to eat in the dining hall. people weren't under the tables but were concerned because of so many unanswered question. after the fact, people were much calmer. a vaigil planned coast poned until today, and an exam that was supposed to takes place today will be tomorrow and the norm's exam schedule next week on monday. >> this shooting was on the very same day that officials from the school were in washington for a heari ining related to the 2007 shooting? >> reporter: exactly. interesting this happened on the same day. the head of campus police and the emergency management director along with several other officials from here were in washington to appeal a $55,000 fine that had been impoegzed on the school by the department of education under the clery act, is security act.

then said the school back in april of 2007, this past shooting rampage, didn't do enough to alert the student body and faculty quickly enough and imposed this fine. this 55,000 fine. and officials were there to protest it. interesting those two things should happen on the same day, christine. >> and our hearts go out to that police officer and his family. i mean that is, as you know, athena, in law enforcement, your worst fear. that you -- a traffic stop turns into something like this. thank you so much, athena. we're also following new developments concerning that lost u.s. drone. iranian state television showing off what it claims is cia stealth drone that apparently went down in iran last week. filing a formal protest calling it a hostile act. iran's u.n. ambassador telling cnn last night the unmanned aircraft was captured with minimal damage. >> they did not shoot the drone down.

actually, the brought it down by their own ways and means that they know and i'm not in a position to discuss the technicality of that. >> oh, but there are questions this morning about whether the drone displayed on iranian tv is real or a fake. so what's the pentagon saying about it? let's head to cnn's chris lawrence live at pentagon for us. so what is the pentagon saying about this? is it a fake? >> reporter: well, carol, yes, it could be a fake, but not everyone's convinced of that. one official i spoke with said, they've got no reason to think it is a fake right now, and he said, honestly, it would be hard to fake something like that. another official says, look, the drone is not design to survive a fall from high altitude like that, and their satellite imagery showed wreckage at the crash scene. when you look at the two side-by-side, iran's drone and a picture of what we know to be the stealth drone, even aviation

experts are split. one said he could see maybe most of the damage might be underneath iran's drone and it could have survived by falling in what they called a falling leaf pattern. another said, no. the wings droop down, and when you compare that to pictures of what we know to be the drone, the wings are positioned higher up for better stability. he called what iron showed nothing more than a parade float. carol? >> so iran said it didn't shoot down the drone, but it used some, like, supersecret technolo technology. i mean is that true? do they have that kind of technology to take down a drone intact? >> reporter: well, the technology exists. it's not all that supersecret. it would be sort of a cyber attack in which a country would hack into the drone's system, you know, to steer it off course or cut off its connection with the satellite, but almost nobody i talked to thinks iran did that. they think the u.s. was right in that call and in that they lost control of it. the guidance system failed,

because as one official told me, that's what drones do. they fail. you don't have a pilot in there. so it's not the same responsibility to make sure that the drone stays in the air. >> so the big worry is that this technology is now in the hands of the iranians and quite possibly the chinese. how much should we worry? >> reporter: yeah. you called it. you know, most officials i've been speaking with say they don't think iran's going to production some production line of these drone, even if they have the technology in whatever shape it may be. the danger is that they would sell it or give it to their ally, the chinese who have much better capabilities and try to unlock the secrets. there was some danger in that. chinese have been known to take technology like that before, but i've also, in the last day or so, spoken to some experts and officials who say, look, there are systems coming online now that will make that drone obsolete. so almost by the time you would re-engineer it and get the advantage, more than likely

there would be systems throughout that would overcome it. >> chris lawrence reporting live from the pentagon. thanks. >> yeah. it may be a notion away, but what's happening in europe as we speak could have a dramatic affect on the american economy. american leaders meeting in brussels announces overnight they've reach add deal to try to save the eurozone. this is america's biggest customer for its products and its bill ally. the deal is anything but perfect, because it does not have the backing of britain. >> i wasn't prepared to agree to that treaty, to take it to my parliament in that way, and that is why i rejected signing this treaty today. the right thing for brit cainbr tough decision but a right one. >> the prime minister saying, boy, i'm so glad we don't use the euro. live in london, london,.

>> reporter: because of mr. camerons skin to effectively veto any treaty changes, that means that this deal will apply to the core 17 euro nations nap isn't a bad thing, though, because these are the countries that really need their budget sorted out. what we're talking about here is what's branded a fiscal compact that essentially means, christine, we're talking about stricter rules about balancing the budgets, keeping the deficitses down. for those countries that don't manage to perform, especially with bailout, they could face automatic sanctions and putting in a little more money for future problems should they crop up. >> reaction from the bond market, frankly, aggressive in their response to how that he think things are going. what are bond investors the capital markets, how are he reacting?

>> reporter: for the moment, a little relief because obviously this is a step in the right direction. some people are saying. the real hope, christine, in brussels they can actually get everything sorted out and implemented as soon as possible. they want the rules in place by at least march. they're expecting at some point they'll be able to tempt the european central bank which control rates and support for the bond markets in countries like italy and spain that have had to pay so much more to borough money going forward. just yesterday even though the ecb cut rates for a second time, mario draghi said the money isn't unlimited to keep supporting the bond markets. >> the story around the world. the money isn't unlimited and the politically in short supply. nina dos santos, thank you so much. and a republican congressman saying heads should roll at eric

holden testifies about the gun running program. grilling the attorney general again over what he knew about the operation and when he knew it. >> what are you going to do to clean up this mess? >> well, first let me make something very clear. and in response to an assertion that you made, or hinted at, nobody in the justice department has lied. nobody. >> why was the letter withdrawn? >> the letter was withdrawn because the information in there that was inaccurate. the justice department letter of february -- >> okay, well, tell me what's the difference between lying and misleading congress, in this con tebs? >> well, if you want to have this legal conversation, it all has to do with your state of mind and whether or not you had the requisite intent to come up with something that can be considered perjury or a lie. >> the operation allowed illegal guns to get in the hands of mexican drug cartels.

two guns found at the foot of a murdered agent. and sandusky free on $ 250,000 after spending a night in jail. police arrested him wednesday on ten additional charges of molesting children after two new accusers came forward. one told the grand jury sandusky's wife ignored his screams for help while sandusky raped him in the basement of their home. well now dottie sandusky released a statement denying that saying as the mother of six children i have been devastated by these accusations and angry about the false accusations such a terrible incident ever occurred in my home. she went on to say, i continue to believe in jerry's innocence and all the good things he has done. in all sandusky faced more than 50 charges related to sexual abuse of boys but is out of jail again. under the terms of his release, sandusky is on house arrest, wear an electronic ankle bracelet and not allowed to have

any contact with alleged victims or witnesses. some attorneys early on had said they were surprised given the grand jury presentment originally that he wasn't already on house arrest before these additional ten charge, but now he is. >> now he is. it's 13 minutes past the hour. what's all new this morning, for the big tax hike looming for millions of american families in 2012, the senate voted down democratic and republican to extend the tax break into next year and is setting up a showdown between president obama and congress. the president saying he won't go on holiday break and neither will congress if this is not settled. keeping an eye on an occupied camp in boston. a midnight deadline came and went for wall street protesters to clear out. police have not moved in yet. like they have in dozens of other cities from new york to los angeles and most recently san francisco. gee, whiz, good to be king albert. the angles just signed albert pujols to the second laughest

maecher league contract in history. are you ready? a ten y50er deal worth $254 million. >> wow. >> that's crazy. second only to a-rod. the angels falled that up with a $ 750 million deal for c.j. wilson. $351 million in one day. i guess the angels will be good. doesn't guarantee anything. does it? >> no. not. >> milwaukee brewers, anyone. was it self-defense or just plain greed? the thanksgiving day pepper spray. oh, yes. that pre-black friday stampede. remember? the verdict next. >> who could forget. and president obama saying, ask bin laden. the commander in chief answering gop critics who say he's too soft. and co-workers, don't let your co-workers tweet drunk. three capitol hill staffers learning the hard way pope, yeah. >> friends don't let friends

tweet drunk? >> apparently here they did. it's 15 after the hour. you're watching "american morning." ♪ ♪ [ male announcer ] everyone deserves the gift of a pain free holiday. ♪ this season, discover aleve. all day pain relief with just two pills.

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hour. welcome back. police say the woman who pepper sprayed a group of thanksgiving day shoppers will not face felony charges. 32-year-old elizabeth masious accused of spraying at least 28 shoppers including children in a crowded black friday pre-sale. los angeles prosecutors say the incident doesn't meet felony criteria but she could still face misdemeanor charges. >> i don't know whether this is exciting or thrilling about being in that crowd. what is so important? oh, gosh. 25% of americans do that. 75% don't. i'm one of the 75%. >> me, too. are you kidding? >> the indycar sears wirious wi return next year. a 15-dar crash in october with one killed. they're still investigating. they're unveiling a new car that wants to complete testing before putting it on the track.

truly spectacular video spims of lava in hawaii. check this out. kiluae is one of the most active volcanoes on the planet. the area around it is virtually deserted. there's only one person brave enough to live nearby. he was actually airlifted off the island by helicopter, because you don't want to be near that stuff. you just want to look at it in pictures. >> they're unbelievable. rob marciano in the extreme weather center. nothing gets better than pictures of lava, as long as no one's hurt. >> the price you pay for living in pair dyes. you have to beware of lava rocks every now and again. and feeling like winter everywhere but hawaii. finally where they should be as far as temps cool in boston and cooler at least in atlanta. meanwhile, it's 8 degrees in minneapolis and 4 in chicago. certainly colder air. alberta clipper moving along the great lakes. snow in chicago and finally

lake-effect snows. a quiet start to the season across parts of upstate new york where they typically get that sort of stuff. anywhere from 6 to 1 in2 inches. acourse the warm great lakes. overe seas to great britain and into scandinavia. check out the video coming in from scotland. 165 mile-an-hour wind gusts yesterday. huge waves. power outs. schools closed. in scotland. you know it's a bad storm. winds blowing so intensely. quiet here in the states, thankfully. northern europe and scandinavia certainly having their fair share of problems. guys, back to you. >> in more ways than one in europe. >> exactly. a different storm. >> the forecast -- >> that's how quiet it is right now. i'm reaching. >> so random. >> thanks, rob. still to come on "american morning" --

>> i simply do not know where the money is. >> he doesn't know. former mf global ceo jon corzine dodging questions about what happened to more than $1 billion in customer funds. [ male announcer ] does your prescription medication give you the burden of constipation? turn to senokot-s tablets. senokot-s has a natural vegetable laxative ingredient plus the comfort of a stool softener for gentle, overnight relief of occasional constipation. go to senokot-s.com for savings.

were back. "minding your business" this morning, progress in brussels. eu leaders meeting in brussels gave up on a new continent wsh di died -- continent-wide agreement. it does not have the support of britain but calls for stricter fiscal discipline. greater fiscal unity of these

countries. the treatly apply only to countries that use the currency along with six others who wish 0 join them one day. it sends european markets higher. ed majority of eu liters agreed to funnel an additional $267 billion to the imf to boost its bailout funds. money which may be used to, may have to be used to help italy and spain. back here at home, banking giant wells fargo agreed to pay $148 million to various federal authorities to settle charge wi. they entered in contracts less advantageous they might have been if it had been a fair and open process. stock market and housing market took a big hit in the third quarter meaning america's wealth took its biggest quarterly hit in more than two years since the battle days of 2008. the average american saw their met worth decline $7,800 for the average family. the good news, markets are

recovering. believe it or not, stocks are up. the dow up more than 4% percent since the big debt drowngrade. hopefully a little of that household wealth is starting to come back. feeling more confident. ford is reinstating dividends for the first time in five years. the move after years of debt and painful restructuring. the company will pay shareholders 5 cents per shea end of the first quarter. the only to avoid a federal bankruptcy and bailout. "american morning" will be right back after this short break. ♪

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saving euro, sparing the globe. another economic meltdown, sparing a meltdown. eu leaders reaching a deal to get pressing dealt under control. what it means for your money on this "american morning." and welcome back. it is 30 minutes past the hour. time for this morning's top stories. reopening old wounds.

a vigil held in virginia tech university after another deadly shooting on campus. two people dead, an officer and the apparent gunman. virginia tech leaders say a new alert system worked well. the first campus warning came with minutes of the call to police. a system that didn't exist four years during the worst campus massacre in u.s. history. iran showing off what it claims is a sophisticated u.s. drone virtually intact that went down in iran. u.s. officials can't be sure it's the stealth plane that went missing last week, because it hasn't been recovered. u.s. and military experts are analyzing the iranian tv footage. grilled for hours. former senator, former mf global ceo jon corzine testifying before congress about his firm's collapse. he heared appall jet is but not much to say about what went wrong and says he simply does not know what happened to more than a billion dollars missing from customers accounts at mf global. cnn reports.

>> do you solemnly swear -- >> reporter: a contrite senator corzine on capitol hill with a much different role. the former chief of mf global was asked how his firm cannot account in almost a million dollars in missing customers funds i. simply do not know where the someone or why the accounts have not been reconciled today. >> reporter: they've now launched investigations. corzine didn't take the fifth but couched his responses noting that he did not have access to relevant documents that he says are essential to him testifying accurately. >> did you authorize a transfer of customer funds from the segregated accounts? >> i never intended to break any rule, wth ter dealt with the segregation rules or any of the other rules that are applicable. >> reporter: keeping customer funds separate from city accounts is a bedrock. it hears that global rule was

broken and investments that led to its spectacular collapse and bankruptcy. in testimony, corzine acknowledged that the company chief risk officer warned him and the board the firm was overexposed. with months the risk officer was let go. corzine said there were other reasons why. james petulas represents mf global customers now trying to recover their money a. guy that points out exactly what they're doing, a whistle-blower, came to the board, and corzine, like, no. how dare someone question me. >> reporter: corzine offered this to those impacted. >> i mean this with all sincerity. i apologize both personally and on behalf of the company to our customers, our employees and our investors. >> reporter: former mf global customer james mayor found little comfort. he had $200,000 with the brokerage firm. only $11,000 now recovered. >> at this juncture, after we

don't get any money in the next couple of week, the only money we have left that wasn't in these trading accounts is my son's college money. >> reporter: two more congressional hearings next week. the senate agriculture committee and the house financial services committee also intend to subpoena corzine. as for getting money back to the customer, the trust he hopes to get about 70% of the money restored to the customers in the coming week. lisa sylvester, cnn, washington. >> eighth largest bankruptcy in american history. turning to europe. members of the european union are pressing forward without britain's support. the new deal calls for fiscal support for the countries. here's how it was described. >> translator: this was the least bad option. this is going to enable us to reform more swiftly. >> that positive spin from the french president, if you can

call this a positive spin from sarkozy setting overseas markets higher but u.s. stock ventures not expected to move up. founder of penn financial group, nice to see you. >> good to see you. >> i'm not an expert on international treaty law and i'm glad and bet you're not one either. it comes down to the legality of international treaties and getting dozens and dozens to together to try to fix the mess? >> no country followed. back to greece. didn't follow the original treaty. >> those treaties are clear how much debt you can carry relative to the size of your economy and over and over again we saw countries saying, no, no. just for a short time. we'll continue to run the big deficitsen eneand now they have problems. >> imagine a family of 17 brothers and sisters sitting at a family. >> and extended cousins.

there are thousands. >> sounds great. one, big happy family. when it comes down to it, you can't be one big happy family and we're trying to over and over bring us together and my concern is, we've had one treaty, one agreement. another treaty with another agreement. where does it go? budgets are balanced in europe but very short term, in my mind. >> what happens to stocks? unpredictable how stocks and the bond market are react as they weigh how this works. could you agree? >> we've been numb to the fact we've had so many treaties and agreement and so many meeting in the last six months to try to fix a major issue but really what we've seen, there's been no fix. we keep pushing it down on somebody else. we'll blame it on britain this time. on greece this time. blaming somebody else but nothing gets done. the actual issue, they're spending too much money and not bringing in enough money. >> the austerity imposing, fiscal austerity, could throw some of the countries and maybe the eurozone into a recession. that's difficult, too. to fix their problems they might

have to give themselves a recession. hard to sell to your people. >> very hard. look back to 2008. basically we had to take money from the government and give it to the banks. it was not easy to do that and taxpayers don't want to hear we're taking your money to bail out banks to save themselves. we're seeing the same thing now. take money from other people. countries, such as germany, who actually don't spend. they save money and have to save, like you said, third cousin at the table taking their taxpayer money and bailing them out. we're eing that right now. >> over the past 60 years these countries have been trying to move together. germany, for example, its economy wasn't fully rebuilt until maybe 1980. right? some of these countries have come so far since world war ii and now are at a moment where some of these old divisions are coming up again. you hear people in italy and greece who are resentful that germany has all the money and power and all the say in all this. the french who do have differences with germany, also

trying to preserve the state of living to their own people, it becomes very difficult and the uk doesn't even use the euro. what david cameron, the prime minister said. listen. >> it's not easy when you're in a room with many other people who all want to press ahead, who all say, forget about your safeguards, forget about your interests. let's all just sign up to this thing together. it's sometimes the right thing to say, i'm afraid i cannot do that. it's not our national interest. >> and that's what the bottom line is here. if the natural interest of each of these countries. did the u consistek win or lose? >> they may win. cameron good for the people, but they may lose in the end. if he wins he actually loses, because if the eu falls apart we're all going to be hit. that's my biggest concern. how do we get rifd the eu without causing a global recession?

>> two tiers? people are talking about so many outside the box solutions. two tiered eu. fall out and come back after you get your house in order? sounds difficult, too. >> sounds good on paper. imagine saying, greece, space, italy, portugal, out for now. sitting at the kids' table. had you get your stuff together, we'll bring you back. it's not going to work because always that last person put to the kids' table that doesn't want to be there. >> since the u.s. was downgraded, aaa in the third quarter, since then u.s. stock, dow up 4%, almost 5%. is it the case for the u.s., we are the least ugly pig in the barnyard? >> talk about decoupling from merging markets. doing better than europe. looking now as a broad picture, where do you put your money? look at europe. not there. merging markets -- united states, as good or bad on paper is now the best investment choice. that's why we've been seeing our market really this year be flat.

when all of this mess is going on our market's actually flat. >> stock market flat for all this bad news and money rushing into the treasury bonds, even though we're worried about our own debt, the world is saying, please, hold my money. just don't lose it. >> think about it. look at europe, the mess in europe, why would -- and the mess we've had here as well. it's just the least of the worst. unfortunately. >> founder and president of penn financial group. nice to see you again. matt's going joan me for "your $$$$$" this weekend. catch us this weekend. if you work for a congressman and you're drinking on the job, and you kind of value that job, don't tweet about it. three aides to democratic congressman rick larsen learned that the hard way. they were fired after posts from their accounts were picked up by a right-leaning news website. a few of the gems. i'm pretty sure i couldn't pass a sobriety test right now. looking forward to a day in the office, and, dear taxpayers, i hope you don't mind that i'm

watching youtube clips of nirvana at my government job and my co-worker just took a shot of jack crouching behind my desk. we have unabashedly given up on all things work-related and that typo isn't a mrs. take either. well, they're gone from their jobs. >> oh, whoa. that is the most stupid on the job get yourself fired thing i've ever heard of. >> who else would hire them in any business? >> there are 14 million people unemployeed in america. many of them would be not that stupid. lots of people to hire, congressman. >> true. >> "american morning" -- is that mean? i'm sorry. >> no. it's true. campaign ad written all over it. president obama responding to gop critics he's too soft, asking if they remember what happened last spring. and is donnald trump still viing about a run for president? and who turns down the trump

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it is 45 past the hour. welcome back. a future campaign ad, responding to gop critics saying president obama is appeasing in his foreign policy. >> ask osama bin laden and the 22 our 30 top al qaeda leaders taken af the field whether i engage in appeasement. or whoever's left out there. >> the president defended his efforts to block iran from developing a nuclear weapon saying his administration has imposed the toughest sanctions

on iran ever. he's watched many opponents enjoy their turn at the top of the polls, one after another. former u taut governor jon huntsman thinks his campaign will peak at the right time. he joined john king last night. listen. >> what is happening in the marketplace is a lot of people who didn't give us a first look are coming around to look at my record and look at my years of service and saying he's exactly what we're looking for. they overlooked us, john, at the beginning, because he crossed a partisan line. served at united states ambassador to china in a democratic administration. i say, i always put my country first. i always will. >> real estate mogul turned debate moderator donald trump talked about his upcoming republican face-off. in typical trump fashion he played the idea of entering the presidential race himself saying he's keeping all his options open. take a look. >> people are afraid i'm going to run as an independent candidate and some of the people that are supposed to be in the debate have expressed that, and

i don't want to give up that option, because it certainly is an option, if the republicans pickle wrong candidate or if the economy and everything continues to be bad and we have the wrong candidate, that would be the worst of all, i would love to see the economy get better. i don't think it will get better under this administration. >> do you think he really would like to be president or a master marketer who knows putting hms up there in that, you know, high echelon keeps him in the news? >> i don't know. i would guess master marketer, but of you just never know. >> i think it's both. i think he really thinks he could be president. >> the trump debate turning out to be not much of a debate at all. michele bachmann texting rick perry, the latest hopefuls, to turn down the donald's invitation. who's in, who'sous? rick santorum and newt gingrich the only two a to agree. the list, we mentioned, bachmann and perry, the trump debate is

scheduled for december 27th in iowa. 47 past the hour. fracking. a controversial debate a huge roll in modern oil and gas development. is it contaminating our water? the epa weighs in. a double edged stwo ed swor returning veterans. now they freed to find a job. it's 48 minutes after the hour. 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.

♪ ♪ [ male announcer ] everyone deserves the gift of a pain free holiday. ♪ this season, discover aleve. all day pain relief with just two pills. just about 50 minutes past the hour. what you need to know to start your day. a vigil held at virginia tech

university after another shooting on campus. two people dead. an officer and apparent gunman. virginia tech leaders say a new alert system worked well. reaching a deal to save the euro. resolving the debt crisis. the agreement does not have the backing of britain. the 17 members agreed to add $267 billion for the international monetary fund. u.s. military officials say they can't be sure the drone being triumphantly displayed on iranian television is the drone that went missing last week. iran claims the stealth aircraft was downed with minimal damage. former penn state football coach jerry sandusky freed on $ 50,000 bail this morning. police arrested him wednesday on ten additional charges of molesting children. his wife now denying she ignored cries of help from one victim. the senate voted down both republican and democratic compromised proposals to extend the pay roll tax break in the next year. you could lose $1,000

intake-home if they don't agree a new deal by the end of the year. and chemicals used in fracking natural gas wells are to blame for water pollution in wyoming. the epa tested the water supply near a wyoming natural gat drilling site. the texas department of public safety showing off a fleet of 900 horsepower pa control boats. each armed with four machine gun turrets. the boats will patrol the io gra rio grande and nearby waters. that's the news to start your day. "american morning" back after a break.

the wars in iraq and

afghanistan, but many veterans face a new battle when they return home. finding a job. >> unemployment among combat vets and others on average, cnn's casey wian reporting in-depth on their struggle. >> first day on the job. le here we go. >> reporter: training for a new job. he used to drive security trucks. now driving a milk truck. >> i get up, go to work and i feel like i'm supporting my family. i don't feel like such a bum anymoany any. >> reporter: his first steppy job since 2009. >> we'd like to hire you. you don't have the experience. >> reporter: 11.5% of veteran whose served after 9/11 were unemployed last year according to the labor department. 50% higher than veterans who served during the first gulf war. >> 1% white. 2% blue. >> reporter: he's working because jim pastor wanted to help a veteran, but less

government assistant available says a vietnam vet whose organization helps veterans find work. >> used to be the government would pay for training subsidies and wage subsidies. the most you get now is maybe a tax credit. >> reporter: this army staff sergeant spent seven months looking for a new job after her iraqi deployment without a single interview. she tried changing one entry on her resume from united states army to united states federal government. that helped her land interviews but no job. >> the simple fact that someone, you know, volunteers and serves their country and has this plethora of experience no one else could have without wearing those shoes should be seen as a complete asset to any organization. >> reporter: now laura works for swords to plowshares helping female veterans find jobs. post-9/11 female vets, nearly 19%. one potential employer said she might be a linlt if she ever

developed post-traumatic stress disorder. >> that dialogue was infuriating. there are ways we learn to cope and learn to manage those symptoms and that doesn't mean we're any less capable of doing a job. >> reporter: mike, who is being treated for ptsd, even so, he's considered re-enlisting because the civilian job market is so tight and with a young happy, he's happy to be driving a truck armed only with dairy products. casey wian, cnn, los angeles. when i see the stories about the homecomings, the next hurdle for many of these people is leaving active duty and finding a job in civilian life. so many great resources. the credit union or the armed services, good resources on the website how to find the best places to live, the best places close to bases where there's contractor work and the like. also, what i think her name was

laura, changing from u.s. army to u.s. federal government is smart. trying to point out your leadership skills and exactly what kind of technical skilling had you on the job. those are important things to put in the resume i. can't believe the skills you use in the service don't translate 20 the civilian world. >> they absolutely do. >> you have to sort of make that clear on your resume, because employers obviously don't think that. >> there are some employers, though, that do active lsh -- the guy that owns the milk company actively looking for veterans and many veterans of vietnam and other times of our history. so that's the important thing. we all help each other here. a lot of these folks are coming home with amazing skills and we just have to help each other. >> we do. ahead next hour a drone on display in iran. does it have u.s. plates? a former security official, is it the real thing? cleaner energy,pply aff, while protecting our environment. across america, these technologies protect air -

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putting inning in ba ing ihis r. getting personal. and iran shows off what it claims is a top u.s. secret drone, but is it the dreen oron dummy? some experts say iran pulled a bait and switch on this "american morning." silicon valley versus the hollywood hills. stopping online piracy saying it will give the government power to shut down websites. -- captions by vitac -- www.vitac.com good morning, earn. it's friday, december 9th. ali's off. i'm christine romans along with carol costello. good morning. >> good morning. new information on yesterday's deadly virginia tech shooting. ballistic tests are back. police confirm that both people were killed by the same gun in an apparent murder/suicide. police say a gunman shot and killed an officer at a traffic stop and apparently turned the

gun on himself after a chase. this all happening nearly five years ar the deadliest camp it shooting in u.s. history took place at virginia tech. >> the police pulled up and when they opened the car door he fell out towards the door and they immediately starting reviving him and i guess the officer didn't make it because they just covered him with the sheet. >> put to the test yesterday, the school locking down the campus and using a high-tech alert system to warn students and faculty members to stay indoors. the first alerts going out minutes after the first shots. the all-clear given after about four hours. >> no additional victims or shooting reports have been given to the police department. so we feel confident that the situation is under control at this time. >> virginia tech police identified the murdered officer

at deriek crouse, 39 years old, marries, five children and stepchildren. joining us with the latest from the campus, athena do we know anymore about the shooting, first of all? >> reporter: interesting. they found out there was a videotape in the policeman's car that actually caught the man suspected of doing the shooting, they caught him on camera, and so that was information that came out last night that helped police begin to connect more of the dots. we still don't know this suspect's name. she haven't yet confirmed his identity. we're waiting to hear that. both the policeman's body and the suspect's body were taken to the medical examiner to be examined. we're still waiting to get more news on the shooter himself, carol. >> and as far as the alert system that went out on virginia tech, everybody's saying it went off without a hitch. what are students saying about it? >> reporter: well, certainly they're saying it worked a lot better than it did 4 1/2 years

ago with the 2007 shooting. the rampage that left 32 people dead. yesterday alerts going out over e-mail, overposted to the school's home page, tweets. people were learning minute-by-minute updates throughout the day. students, the school newspaper reports students were gathering in each other's room,eneder lockdown in the doorm and watching to the news, living online. keeping friends and family abreast. a lot of them couldn't necessarily make phone calls but could text and put a blast on facebook letting parents know they were doing okay. certainly the sharing of information seemed to take place a lot more quickly, a lot more smoothly this time around, carol. >> athena jones reporting live from virginia tech. thanks. u.s. officials are tight lipped about it, but iran is showing off what it claims is an american stealth drone. apparently intact that went missing in the region last week.

iran's u.n. ambassador telling haven't cnn the top xrisecret aircraft was down with minimal damage. >> they did not shoot the drone down. actually they grounded it by their own ways and means that they know and i'm not in the position to discuss the technicality of that. >> all right. so what exactly is the pentagon saying about the drone display by iran? cnn's chris lawrence is live at the pentagon for us. so, chris, the very fact that i'm going to ask you the question, real or fake, is an embarrassment for american, you know, american defense secrecy. >> reporter: yeah, that's right, christine, but also an embarrassment in some ways to iran you have to ask the question, but it's a good question. u.s. officials are split. one official says he's got no reason top think it's fake. in fact, he said, it would be hard to fake it. another official says, u.s. satellite technology showed the crash site and it showed wreckage and rubble, not an

intact drone. look at the images side-by-side, what iran showed and a photo of what we know to be t stealth drone. one aviation expert i talked to said he thinks iran's drone is real, because he says most of the damage could be underneath, and it could have survived the fall by coming down in what he called a falling leaf pattern. another expert said, no. he said, the wings droop down, and he said, in the real drone, the wings are positioned higher for better stability. he calls what iran put out in nothing more than a parade float. >> about a week to put that float together. who knows how many pieces it was in or what in tried to do with it or trying to mock up something political. we justify don't know. what was the drone doing when it went down? >> reporter: two stories out on that. a u.s. official says, look, this was a cia mission strictly to look for insurgents along the border of afghanistan and iran, strictly on the afghanistan side. there was nothing to do with any

spying into iran, which this drone would have had the capability to the do even on the afghan side of the border, but other experts and some other officials i talked to say they don't really buy that. they say, you know, this drone is specifically designed to go into areas where you've got air defenses. commonly used drones like creepers and predictors would be picked up. there's no air defenses in afghanistan. why would they run this kind of mission with this kind of drone just to do that? >> iran's u.n. ambassador suggest head was not at liberty to talk about the technology used to take down this drone. what could that be and could iran even have something like that? >> yeah. by everything i'm hearing, the reason he's not at liberty to talk about it, because they probably don't have it, christine. you know, he's talking about, you know, cyber warfare, hacking into the drone from the ground to disrupt its signal and bring

it down remotely. almost everyone i spoke to said iran simply does not have capability. more likely the u.s. lost its control. >> brings me to, if this were the real thing, iran, i don't know what iran can do with it, but i know russia and china would really like to get ahold of this. so that's what people are really wondering about. right? which of iran's friends around the world -- >> reporter: yeah. china has a history of that. going in. they went into serbia and picked up pieces of a stealth plane, a u.s. stealth plane that went down 12 years ago. some experts say there would be a danger of that, but there are new platforms coming online that will quickly make this stealth drone probably obsolete. bite the time you reverse engineer it, got the technology, the united states would more than likely have something even better. >> hope so. chris lawrence for us. carol? joining us from new york to talk about the potential

intelligence fall outout, fran townsend. welcome. >> reporter: thank you. >> so it took iran a couple of days to display this drone on state television. we all wondered why. what does that say to you whether this is the real thing or not? >> as we heard in chris' package, there is, there are disputes among american officials. the length ever time it took that the -- just the picture itself makes it look odd to most officials, but we know that iran has got friends in russia and china who have this sort of jamming material. jamming equipment that would interfere with the signal and may have permitted this to go off course. remember, carol, remember, the iranians initially said they shot this down and that turned out not to be true. i don't have any greater confidence in their current statements, to tell you the truth. >> so as pentagon officials look at this video from iran state television what specifically are they looking for? when you just look at it, the two drones side by side, they're

talking about the same aircraft? >> they'll do a -- what pentagon and intelligence officials will do is a very technical analysis. they'll look at measurements. there's a lot they can tell from the pictures and they'll ultimately make a determination whether or not this is a real u.s. drone that's been put on display. if it is, there are two things they really care about what the iranians may now have. one is the technology that makes the drone a stealth thing. what it's covered with. the same concern, of course, with the helicopter that went down in pakistan during the bin laden reign. the stealth technology is valuable. a lot of money we put into investment to create that. the second here is the payload. payload is what's inside the drone. it's what was it used for, what was the intelligence purpose of it? what was it that the u.s. was looking for and looking at, and that, too, is a tremendous intelligence value, if the iranians look inside. >> something on tape in there? possibly? for lack of a better word. i don't know. >> right. but there's technology inside

and it's the technology that would be of interest to our adversaries and those around the world to understand how americans go about gathering intelligence and what it is they're actually targeting. >> okay. why isn't there a self-destruct button? a haute button. it explodes in midair? >> you'd like to think. protocols military and intelligence go through for just that sort of thing. all is that is classified, so we can't talk about that. for good reason, things like that do exist. >> as far as the worry that americans have about this intelligence falling into the wrong hands and endangering our own country. how much should we worry? >> you know, if a piece of technology like a drone comes down in a single piece, as the iranian have sittinged, we department know that this is true, but if it were true, it does allow them to understand the technology. whether it is to sort of understand what our capabilities what we can do, or for them to develop their own.

that is a concern, carol. but there are things we do in terms of countermeasures to defeat them. we know what our capability is. so we build ourselves defenses that would defeat somebody using the same technology. >> right. it's difficult to believe we wouldn't be prepared for something like this to happen. it's bound to happen, right? >> exactly right. that's why icy to you there are both technology and process thing wes go through to protect ourselves. >> fran townsend, thanks, as always. appreciate it. we want to say this, fran, many other former national security officials support the u.s. state department dropping the terror designation or the iranian opposition e echmek. full disclosure for you this morning. >> thanks, carol. today was meant to be the day when europe came together and got its financial house in order. instead, moving forward with a deal to resoovl the region's debt crisis without the support of britain. the deal among other things requires 23 of the 27 european

nations to impose stricter budget rules. earlier british prime minister david cameron explained why his country will not play along. >> we're a key member ever the single market. we drive change in the single market but not in the euro. i'm glad year not in the euro. >> wow. also overnight, majority of eu leaders agreed to lend additional money to the imf. that money will be used to boost imf bailout funds which may have to be used to help italy and spain. former penn state football coach jerry sandusky free on $250,000 bail this morning after spending a night in jail. police arrested him wednesday on ten additional charges for molesting children. after two new accusers came forward. one of them told the grand jury sandusky wife ignored his screams for help while sandusky raped him in the basement. now sandusky's wife dottie released a statement denying that saying as the mother of six children i have been devastated by these accusations.

i'm also angry about the false accusations that such a terrible incident ever occurred in my home. she went on to say, i continue to believe in jerry's innocence, and all the good things he that done. and occupy boston protesters told to disband their camp in the city's financial district. a midnight deadline came and went last night for them to clear out. the police have not moved in yet. like they did in dozens of other cities, from new york to los angeles, and most recently in san francisco. still to come on "american morning," now playing an epic bale between hollywood heavyweights and internet moguls over the pirating of movies and tv shows. mitt romney on the attack. trying to convince the republican rank and file that party front-runner newt gingrich can't be trusted. will his strategy pay off for the gop's number two? this new at&t 4g lte is fast.

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welcome back. good morning, everyone. award season is in full swing now in hollywood but an even bigger entertainment battle was playing out in washington yesterday. >> of course. with movie and tv producers clashing with internet companies over pirated content. cnn's brian todd is following the story for us.

>> reporter: taylor hackford's career track shouldn't have him worried about his livelihood. one of hollywood's legendary directors, put out hits like "an officer and a gentlemenan." but he's worried. it had taken him 13 years just to get the financing for it. >> i went down to canal street and before the box office opened for its first day in the movie theaters, i could buy ray on the street at canal, great arkwork on the cover on a dvd. >> reporter: how much? >> they were charging $20. >> reporter: he said he watched people buy pirated copies of his movie. he and other directors are now joining forces with executives from the big entertainment conglomerates that produce movies and tv shows on a crusade against pirating. they're supporting bill is being

debated in the house and senate which tighten up enforcement guy going after the websites where people can play. >> we lose millions in industry, virtually everything is pirated from the day its available. from the first screen it guess on. >> reporter: head of fox film entertainment says his company's movie "the deendant" was pirated from the moment it came out. warner brothers is fighting to stop piracy. it is owned by time warner. the industry leaders who produce movies, tv shows and other content say it's not just about their product but all the people who work behind the scenes. the people who run and work in movie theaters across the country having their jobs threatened. on the other side, an argument about free speech. big internet companies like google and yahoo! are fighting these new enforcement measures making this is clash of entertainment titans. the high-tech companies versus the big studios. the free speech concerns are

internet wide. this man says if the bills pass the movie studios would have the power to squeeze pay services like mastercard and visa and ad companies to stop doing business with even la gist wegit websites the sites free speech platforms which could be shut down by those actions. >> hundreds of thousand, millions of blogs an people using these sites to talk about their life, their art, to share their art, to make art, and when you take down the whole thing to target a few pirates, all of those people go with it. >> reporter: movie industry officials say the new mieasures would only take down those dedicated to posting stolen content. they interpret language in the bills giving the studios latitude to go after legitimate websites which only occasionally post pirated film. brian todd, cnn, washington. 19 minutes past hour. time for today's travel forecast. rob, it's friday. people want to get away.

they're counting on you. >> are they? oh, that's a lot of heat. i'm trying to -- some folks could use heat, certainly across the south. temperatures chilly. hey, it's the second week in december. spots across the florida panhandle temperatures are close or at the freezing mark. 37 in atlanta. 28 degrees after snows in memphis. it's 7 right now in minneapolis. traveling there, certainly bring your fashionable winter gear. finally snow across chicago. it didn't hadd up to a ton. crossing into an alberta clipper out of alberta, canada. not a lot of moisture. once the cold air gets over the warm waters of the great lakes, this is where the lake-effect snow season has been slow to start, but is now coming. 6 to inches of snow expected in spots south of buffalo and across the tughill plateau north of watertown. 8 to 12 of snow.

the storm that rolled through the northeast yesterday, a lot of rain across areas like d.c. and new york, records shat frerd hartford through philly, louisville and d.c., for rain totals for the year, and the more rain yesterday. a dry day today. traveling to chicago, cleveland or detroit, you'll see the wind and snow. traveling to hawaii, the big island is what you might see this happening. this is the royal -- just outside the royal gardens subdivision, which sounds really nice, and, whew, you get a little too close to that and you're going to burn your toenail there's. amazing video coming out of big island as the multan lava pours down into the pacific ocean. shows that last hour. probably show it again next hour. i never get tired of it. >> it's awesome. it really is. >> i'm glad i don't live in that subdivision, though. >> thank you, rob. still to come this morning a just released hotel survey video shows dominick strauss-kahn and

the maid who accused him of rape just after the alleged attack and it raises more questions than answers. and countdown to a tax hike. congress can't get it done. pay roll tax set to expire. the president now saying, no one leaves until we cut a deal. it's 22 minutes past the hour. ♪ i'm burning out this useless telephone ♪ ♪ my hair is gone ♪ cheap cologne ♪ motor home ♪ i'm the rocket man! [ both ] ♪ rocket man ♪ burning out his fuse up here alone ♪ burning out his fuse up here alone? ahh.

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welcome back. "minding your business" this morning. most european leaders agreed now to a deal to solve europe's debt crisis even though britain refused to sign on. their rescue plan calls for stricter fiscal discipline of these treatise. the treaty only applies to those who use the currency and six others who wish to join one day sending stock prices higher. the majority of eu leaders agreed to funnel additional $267 billion to the imf to boost its bailout funds. money which may have to be used to help italy and spain.

walmart launched an investigation into possible acts of corruption by its employees. in a filing with the securities and exchange commission the world's biggest retail sir trying to uncover whether workers bribed foreign officials to win business. something forbidden by the foreign corrupt practices act. ford motor company is feeling more confidence, reinstating dividends for the first time in five years, the move coming after years of painful debt restructuring. bite end of the first quarter, ford will pay shareholders 5 cents a share. the only u.s. automaker to avoid a federal bailout and bankruptcy reorganization. twitter is getting a new look. the revamped look to attract more advertisers. the twitter site should be updating over the next couple of week. a spike in self-gifting. according to a new survey, 36% of you plan to buy gifts for

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welcome back on this friday morning. it's 30 minutes past the hour. time for your top stories. eu leaders agreed on new deal to try to resolve the debt crisis. one that stit threatens the world economy. britain and three other countries refused to back this new deal. under it, the european central bank will management bailout funds and eu leaders decided to add $267 billion to the international monetary fund which assisted in the bailout struggling european economies like greece. a vigil held at virginia tech university after another deadly shooting on campus. two people dead, an officer and the apparent gunman. virginia tech leaders say a new alert system did work well.

the first campus warning came with minutes of the initial call to police. it's a system that did not exist four years ago during the worst campus massacre in history. iran is showing off what it claims is the top secret u.s. drone that went down with its borders even though the u.s. admitted that it lost an aircraft. some experts are saying this one is a phony. on to politics now. mitt romney on the attack. romney's wiping the dust off a verbal bomb newt gingrich lobbed almost seven months ago now. all to fight the polls that show gingrich way in the lead. here's what gingrich said in may on "meet the press" about representative paul ryan's medicare plan. >> i don't think right wing social engineering is any more desirable than left wing social engineering. i don't think imposing radical change from the right to the left is a very good way for a free society to appropriate. >> joining us to talk about what romney is doing with that comment and if it will work,

editorial director of the national journal roun brownstein. good morning, ron. >> good morning, carol. it is on. >> had-it-is on. grabs on to that comment, mitt romney i'm talking about. sent out twoless to make sure every republican voter remembered it. one of them, former new hampshire governor ron is a knew nhu. >> for him to go out and cut their legs off by saying that it was conservative social engineering is a perfect example of newt gingrich preferring to do things that boost himself rather than recognizing that this was a good conservative plan, good for the country, good for america and good to be best. >> does mitt romney have a choice? doesn't he have to fight back in this way? >> he does. two interesting thing about this attack. first, despite the hyperbolic language gingrich used to krit same paul ryan's plan last year,

gingrich and romney have the same position with the plan. the way medicare works now seniors go to the hospital, doctor, the government pays directly. the house pass add plan saying we're going to end that system and instead give you a check or a subsidy to buy private insurance. gingrich complained about the house version of the plan did not even give seniors the option of staying in medicare. substantive agreement. mitt romney has the exact same opinion. it should be an option. an interesting thing about the argument, the basic idea of converting medicare in that way, asset to-from-a benefit to a program, they have not sold that to the general electorate. what's going to happen, the two front-runners for the republican race battle each other to see who is more deeply committed to proposal that could be a challenge in the electorate is either one is the nominee. >> fascinating. gingrich isn't exactly fighting

back. in fact he said he's going to stay positive. with less than a month until item wa caucus, is that the right move for him? >> we'll see if it's sustainable. three big lines of argument you're likely to hear from romney and his surrogates. one is that gingrich is not a reliable conservative. kind of a tough argument for romney to press, given his own shifts on issues over the years. another is that gingrich is a career politician. he spent decades in washington. that's an easier contrast for romney, since he's not been in political office as long, but i'm not sure it's as relevant for voters. right now gingrich has a big lead when republicans are asked, who's most prepared, and gingrich is volatile, unpredictable, not a good manager. better in the house as a gorir l guerrilla leader. almost lost after one term and after two terms as speaker essentially forced out against

the clinton impeachment. you'll likely here romney approach all arguments in the coming weeks. >> the super pack that backs romney release add web video that calls gingrich a flip-flopping friend of obama care. let's watch part of it before we discuss. >> on the issues, newt's been on all sides. schae ports amnesty for millions of illegal immigrants. gingrich even teamed up with nancy pelosi and al gore on global warming and newt was a longtime supporter of a national health insurance mandate, the centerpiece of obama care. maybe that's why george will called gingrich the least conservative candidate. the gingrich record, 30 years in washington. flip-flops on issues. >> okay. two things fascinated me about that ad. one, it uses labels to attack gingrich, and the same labels are used to attack romney, and secondly, the super pack that put up the ad on the web removed it and nobody really knows why.

>> well, you know, the three issues you highlighted, citizenship, amnesty for illegal immigrants, action on climate and health care, various points of higs career, mitt romney took a position conservatives didn't like on all three. the basic dynamic of the race romney is facing is that, kind of a correlation of forces we talked in the false reversed. look at your polling in october and september. what was happening, the center was coalescing around romney and the right was dividing among several candidates, between bachman, gingrich, perry and cain. now the reverse is happening. gingrich is consolidating the right. look at polling out this week in iowa, new hampshire, south carolina and florida, gingrich is getting a bigger share of tea parter voters and evangelical christians than anybody earlier in the fall. splitting, the middle. gingrich is dividing the middle, less secular voters with romney. romney is facing a two-front war. gingrich is not just a creature

of right in this race. he's showing appeal to a broader range of voters. romney and his allies are troozing to do as we perry, go with gingrich primarily from the right saying he's not a reliable conservative. gingrich hasn't been in the sense of fed is steady positions but a reliable party. a war yen against democrats. led the republican to their first majority in the house 40 years and give hem measure of defense against the attack on the romney side. >> we'll see if things get nasty between mr. romney and gingrich in tomorrow's debate. >> let's bet they do. >> i'm betting they do, too. ron brownstein, thanks to you. >> thank you, carol. also new this morning, just released hotel surveillance video showing d indominique strauss-kahn and the maid who claims he raped her. it may have been set up. showing strauss-kahn leaving the hotel right after the alleged

attack. and she's seen talking to supervisors and security and apparently re-enacting an attack, and in another scene, another hotel employee appears to be engaged in a celebration just after a call to police was put in. former football coach jerry sandusky free on $250,000 bail this morning. police arrested him wednesday on ten additional charges of molesting children. his wife now denying she ignored cries of help from one victim. with a big tax hike looming for millions of american families in 2012, the senate yesterday voted down both republican and democratic compromise proposals to extend the pay roll tax break in the next year. it's setting occupy a showdown between president obama and congress, the president saying he won't go on holiday break and neither will they if this isn't resolved. the woman who pepper sprayed a group of holiday shoppers will not face felony charges.

32-year-old elizabeth macias is accused of spraying 28 shoppers including children in a pre-black friday sale. macias could still face misdemeanor charge. mixing meth inside a walmart? speaking of walmart, this actually happened. at least according to police. police arrest add tulsa woman to allegedly attempting to make the drug from chemicals she grabbed in the store, lithium and drain cleaner. police say one officer may have been burned by a chemical reaction as he went to arrest her. controversial over a christmas display. a nativity scene in front of a texas courthouse sparking outrage all the way to wisconsin. >> an atheist group says it's unconstitutional and violates the separation of church and state and want it gone. a lawmaker says the display ain't going anywhere without a fight. >> we'll remove it when hell

freezes over. i'm an old country boy. come to my house looking for a fight, you're going to get one, and that's from the bottom of my heart. >> that time of year when america fights about putting the christ back in christmas or taking it out. every year this happens. doesn't it? >> the war on christmas began few weeks ago and continues. >> right with the pepper spray. still to come, european leaders with the debt crisis talks have a deal. one key player not onboard. what does it mean for the region's crisis now threatening the world economy. inside the legendary liz taylor collection said to go to auction next week. you're watching "american morning." it's 40 minutes past the hour. - ♪ bum-bum - ♪ bum-bum, bum-bum - ♪ [ ice rattles rhythmically ] ♪ bum-bum, bum-bum, bum-bum ♪ ♪ [ imitates guitar noise ] ♪ [ vocalizing up-tempo heavy metal song ] ♪ [ vocalizing continues ]

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it may be a notion away. what's happening in europe as we speak could have is a dramatic effect on the american economy. meeting in brussels overnight, saying they've reach add deal to try to save the you'eurozone ev without the important backing of britain. if they don't get it fixed and

europe fingers american factories will close no question. made up of 17 countries. of course, pat of the european yoon yi which has 27 members overall. live in london, focus in on the deal. what did these 23 out of 27 countries agree to? >> reporter: they agreed to broadly speaking, force countries across the eurozone to rein in budgets. these laws in place as far as what deficits the countries should have. never exceeded 3% total gdp. because they weren't closely enough enforced they did. countries like greece, sparked the european crisis coming out with a deficit more than three times deemed acceptable. they'll force countries to have automatic sanctions if they breach deficit tarts and brick ch bringing in the eurozone bailout fund about a year earlier than expected and committed to investing about

$270 billion to try to pump up the permanent fund to get it going sooner. >> nina, britain has, there's a treat any place between 27 countries and britain says this deal outside of the original treaty, we don't want to be a part of it. why? >> reporter: yeah. essentially david cameron, the uk prime minister was trying to do, say, let's say, new safeguards to opt out of financial transaction tax that leaders of france and germany seem 20 be adamant they want to be imposing here. as a result, because he didn't manage to get those sanctions he said he would veto the treaty. they said, we'll go it alone without your help. that prompts a lot of concerns what could be developing. a two-speed europe and the united kingdom it seems is looking increasingly isolated. >> that would hit the city of london. a powerful financial center. london wants to lead the world in the financial sector in, of course, so it wants to protect

that. nina dell santos, thank you. speaking of the global debt crisis, who's to blame? many point the finger at banks, consumers, capitalism, governments? but who's blaming themselves? did a prosperous america lose its ethical way and if so, how do we get back? calling himself america's rabbi. americans are talking about the wrong issues. >> for 20 years in america the only thing religion talk about, gay marriage and abortion, abortion, gay marriage. i'm sick of that conversation. if it's graut up one more timite eat my yarmulke. i want to hearing a corruption and soullessness. >> soulless capitalism he calls it. catch more of my conversation with the rabbi this weekend on "your bottom line." saturday 9:30 eastern. and we talk to deepak chopra about the moral effect of what we're going through in the world now arguing who has to pay for the excesses of a generation.

>> that will be an interesting conversation. >> got really fiery. >> i think i'm going to watch. still to come, you could own a piece of liz taylor's famous jewels. speaking of consumerism. those jewels are going up for auction. inside her fabulous collection. and today's "romans' numeral," 2021. here's a hint. it's a year and why the u.s. so badly needs to start balancing its checkbook and why the deficit of leadership in washington is so critically important. 47 minutes after the hour. dumb luck? or good decisions? ones i've made. ones we've all made. about marriage. children. money. about tomorrow. here's to good decisions. who matters most to you says the most about you. massmutual is owned by our policyholders so they matter most to us. massmutual. we'll help you get there.

11 minutes to the top of the hour. what you need to start your day -- jerry sandusky freed on bail. his wife now denying she ignored cries of help from one victim. a vigil held at virginia tech after another deadly shooting on campus. two people dead. an officer and the apparent gunman. virginia tech leaders say a new alert system worked well. u.s. military officials say they can't be sure the drone being triumphantly displayed on iranian television is the drone that went missing last week. iran thinks the stealth aircraft was down with minimum damage. a new report from the environmental protection agency finds chemicals used in fracking natural gas wells are to blame for water pollution in wyoming. the epa tested the water supply near a wyoming natural gas

drilling site. prosecutors pushing for prison time for home run king barry bonds. they want to put him away for 15 months. he was convicted of obstruction ever justice during a steroids investigation in april. bonds will be sentenced next friday. the pittsburgh steelers continue to roll beating the cleveland browns 14-3 in thursday night football. steelers quarterback ben roethlisberger threw two touchdown passes. pittsburgh improving its record to 10-3. you are now caught up on the day's hday day's headlines.

welcome back to "american morning" this friday.

2021 is the year our debt surpasses our economy. there's something that may even be more dangerous than our debt and deficit to america's standard of living. "it is impossible to make economic assumptions with forecast because congress has us on quicksand without firm footing to address these issues facing us luke the debt crisis and our aaa credit downgrade." even as we are watching europe and tim geithner's telling them to get their act together and help them lead, we don't have it here. we just don't have it together here. >> i know. i know! i'm trying not to be down about it. it's friday. >> the president has said he's not going on the holiday if they don't get this payroll tax holiday figures out. here we are again right down to the wire. i think this time the american people -- they've had it.

we've been to the brink and back too many times. 2021 is the year -- right around the corner. >> you can own a piece of hollywood history if you got the money. liz taylor's biggest diamond, her sparkling tiara, even her wedding dresses. >> hundreds of her possessions will go up for auction next week. >> reporter: liz taylor is eyeing her own auction. she is eyeing her jewels. she is eyeing the line of people waiting to get in at christy's. she's watching your back if the clothes off her back go up for bid from her beaded versaces. or maybe you would prefer to own her tiara, the one given to her by husband number three, film director mike todd who said -- >> elizabeth, you are my queen, you must have a crown. >> reporter: you can even bid on her wedding dresses. she wore yellow the first time

she married richard burton. the second time she married him, her fifth husband. but she never ran out of diamonds. >> it is the size of a cherry. >> reporter: richard burton gave it to her. >> she would call it her baby. >> reporter: she even wiggled it at larry king. most people have a jewelry box. what did she have? >> she had a jewelry room. >> reporter: kristi's created a mock- mock-up. the ping-pong diamond from a match she played with burton. >> elizabeth, if you beat me by ten points or more, i buy you a diamond. >> reporter: she won, he bought her three. looking for something cheaper? imagine flipping into her hot pants. she wore this outfit at the age of 39 the day she first became a grandmother. they're not just hot pants. >> they're kind of like where's the fire engine.

>> reporter: you can even bid on her size 10 shoes. the very feet that stomped on a fellow who insulted her in "butter field eight." the auction includes her portrait by andy warhol and a monkey michael jackson gave her. so close that her boa once got stuck in her sequined jacket. >> this is great christmas gift. >> reporter: paper cut-outs are being sold for $25. it seems as if every possession like this 500-year-old pearl comes with a great liz taylor story attached. >> she almost lost it and they found it in her puppy's mouth. >> reporter: the only thing more glittering than her diamonds were the flash bulbs. jeanne moos, cnn, new york. >> wow. it is amazing the fortune she amaced in jewels. when you think in her heyday she

was the top. now women get $20 million for a flich prelim? >> i think for "cleopatra" she made some phenomenal amount of money. i just can't imagine a man buying me a tiara because he thought i was a queen. are you listening, my dear husband? still to come this morning -- another tragedy on campus of virginia tech. two dead, including an officer and a father of five and a new alert system. it was forced into action. did it work? we'll take you live on campus. it is getting personal in politics. a new romney ad takes a swipe at newt gingrich's personal life. we will check in with candy crowley. iowa just a few weeks ago. it is 57 minutes after the hour. ♪ ♪ cheap cologne ♪ motor home

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good morning. i'm carol costello. the european union anything but united. britain refusing to back a new treaty desoond to solve that region's debt crisis. we'll look at why and how markets are reacting. another tragic shooting at virginia tech. an officer, father of five, killed. an alert system in place that was not there four years ago. how does it work? on this "american morning." good morning. friday, december 9th. welcome to "american morning." i'm christine romans. >> i'm carol costello. happy friday. he vanished in iran five

years ago and this morning for first time we are seeing a videotape of retired fbi agent robert levinson and he's pleading for help. the tape was received by his family in november. they posted it online today. in it he says, "i've been treated well but i need the help of the united states government to answer the requests of the group that has held me for 3 1/2 years. i am not in very good health. i am running very quickly out of diabetes medicine. 33 years of service to the united states deserves something. please help me. along with the video, the family also released a taped statement. here it is. >> i am making a plea to the people that are holding my father. my mother has refused your messages. please tell us your demand so we can work together to bring my father home safely. >> bob, i will continue to do everything i can to bring you home alive. all i want is for our family to

be whole again. we love you. we miss you every day. we will not abandon you. >> as early as last march secretary of state clinton announced that there is evidence levinson may still be alive. clinton did not give any indication who may be holding levinson but asked the government of iran for help in rescuing him. >> so odd. he said the group that is holding me, i ask for your help but didn't say who that is. not specific. very strange. also new this morning, new information on yesterday's deadly virginia tech shooting. ballistic tests are now back. police are confirming now both people are killed by the same gun in an apparent murder-suicide. >> police say the -- >> police pulled up and they opened his car door and when

they opened it he just fell out towards the ground. then they immediately started rerifg him and i guess the officer didn't make it because they just covered him with a sheet. >> changes made after the tragedy were put to the test yesterday. the school locking down campus and using a high-tech alert system to warn students and faculty members to stay indoors. first alerts went out minutes after the first shots then the all-clear was given after four hours. >> no additional victims or shooting reports have been given to the police department. so we feel confident that the situation is under control at this time. >> virginia tech police have identified the murdered officer as derek kraus, 39 years old. married with five children and stepchildren. athena jones joins us from the campus with the latest. how are students and others on campus reacting to all of this?

>> well, certainly yesterday there was a lot of concern during this four-hour lockdown. people in their dorms or in the cafeteria studying for finals. there were questions that had gone unanswered. the college newspaper reported there was one dorm near the scene of the first shooting of the officer which is just on the other side of this stadium behind me here. people were going to one person's window and looking out to see what was going on. there was a lot of concern during those four hours but the campus did a good job of keeping people posted on all of the developments as as they unfolded over the course of the day this time around. >> going back to the shooting itself, it is just so strange. so this officer made a traffic stop. but police believe the person in the car did not fire the shot that killed the police officer and then they found a man's body a short distance away an he was dead with a gunshot wound.

>> exactly. details are still emerging here. we still don't know. the police haven't identified the suspect, the second body found nearby, another parking lot with a gun nearby. they haven't identified that person. we still don't know much about motive or much about the weapon. what we do know, reveal late last night, that this man was captured on video with a gun, the man now the suspect description was captured on the video in the policeman's car. then a few moments later kraus was shot. this is the same person that they found later on. but a lot of the connections still need to be made so we are waiting to hear more information regarding both motive and the name of the suspect and several other instances. >> the university's response this time around must be a lot different than 2007. this is a university so scarred by gun violence that they have pretty significant protocol in place, don't they?

>> reporter: well, absolutely. certainly back in 2007 there was a lot of criticism the university came under not doing enough to alert students, faculty and everyone on campus of what was going on. incidentally that shooting spree took place mostly at a hall right next to the parking lot where yesterday's shooting took place. this time around though everyone was kept informed. a lot of journalists were following through tweets, through the university's home page they were posting announcements. there were tecxts. e-mails. students couldn't get phone calls out to their parents but they were letting people know through facebook or twitter that they were okay. people were really kept informed minute to minute as events unfolded. >> athena jones, thank you. republican presidential candidates meeting again tomorrow night in iowa.

we'll see if mitt romney continues in person what he's been doing in his campaign ads, attacking newt gingrich. joining us, cnn's candy crowley joins us. let's talk about newt gingrich and mitt romney. mitt romney has been changing his tact a little bit. more than once this week i've heard every rise of newt gingrich story is accompanied by a "the fall of newt gingrich story." >> the timing is everything. >> it really is. what is romney's tack here especially with gingrich so high in the polls? spl when you are going after what is now the front-runner, newt gingrich, there are a couple of things that sort of fit into the standard definition of how do you go after a front-runner? you have to hit him hard in vulnerable places in a republican primary. that means going after him saying he's not really conservative, he's not on our side, and it also means going

after what has been newt gingrich's achilles heel to many and that's his temperament and the idea that sooner or later he will implode so poke at him, poke at him. because if you can make him implode, so much the better. i think mitt romney has to do something else. remember this was what we called the weak front-runner for a year-and-a-half or so. the fact of the matter is romney has not been able to kind of get more than about a quarter of the republican party around him. there are just a lot of people you talk to that have no real feel for him because he's such a cautious campaign. he hasn't gone after other front-runners. he's let them fall on his own -- on their own. now what he needs to do is say, i really want this job. you know? and i'm willing to fight for it. because if people don't see a passion in you, tend to make them look elsewhere. i think it is two-foal for

romney. he and surrogates have to go after gingrich at the vulnerable points, try to provoke him as well. mitt romney has to do himself a favor. >> it looks as though republicans are just casting about for the past year, casting about for who their candidate will be. i want to talk about leadership from the president's perspective here, the president facing a big fight in the congress over extending the payroll tax holiday. i want to show you what it means and why there should and fire uncongress to get it done. this chart shows you how much there will be a tax increase for different wage brackets if they don't do anything. people made $35,000, their taxes go up $700. $50,000, $1,000. you can see right there. you'd think if both parties say they want to do this and we are talking about 160 million americans affected by it and we know that economists are now saying it would be a quarter or half percent of gdp would be hit if we don't do it, weise wrong

with congress? >> well, we don't have enough ti time. >> give me the top three. >> number one, and number two and number three is we are in the middle of an election cycle. okay? part of the problem is these people fundamentally disagree on a lot of things but what they don't disagree is that they want this payroll tax to happen. they disagree on how it affects the economy. a little stimulus, et cetera, et cetera. but the fact of the matter is that republicans look at this and understand that if they don't do it looks like a tax hike. for a party that spent how ever many decade talking about tax cuts, this is not a good thing go into and election year. they're arguing about how you are going to pay for it. there is also a problem on the house side, a whole different -- within the republican party.

a lot of people don't want to extend that tax cut, you are not getting any back for the buck, it is harming social security, et cetera, et cetera. go that's another good point. also liberals are worried about that, too, using -- when you give somebody a temporary tax break it is very hard to bring it back. >> right. there's no such thing as a temporary tax cut. they say it because now what are we talking about? we're talking about a tax hike when in fact we can also describe it as social security taxes going back to their regular percentage. but it is just -- look. it feels like a tax hike. all of a sudden you look at people have gotten used to it. very tough to take away and impossible to take away in an election year. it just depend on what will get passed with it, what else is in the pack animal and how do you pay for it. >> everyone wants to store

political points. what can we look forward to sunday? >> you mentioned the debate saturday night. want to talk to rick santorum who's put together quite the organization in iowa. it is his last best chance really to make any kind of be it spoiler or make any kind of splash in the republican primary. even he has said this is pretty important. we'll look at mitt versus newt, how this all comes down. we're less than a month away from the caucuses. can you believe it? >> get out your parka, candy. snow and wind. thanks, candy. >> candy is used to snow. those iowa winters. also new this morning, former penn state football coach jerry sandusky is free on $250,000 bail after spending a might in jail. police arrested him wednesday on ten additional charges of molesting children after two new accusers came forward. one of them told the grand jury

that sandusky's wife ignored his screams for help while sandusky raped him in the basement. well, now dottie sandusky denying that saying no abuse ever happen in her home. also new this morning, just released hotel surveillance video showing dominique strauss-khan and the maid who claims he raped her. the edited tape shows strauss-khan leaving the sofitel hotel. the maid is seen talking to supervisors and security and apparently re-enacting the attack. in another scene, other hotel employees appear to be engaged in some kind of celebration and that was just after police had been notified. let's talk sports now. let's pause for just a second though. we want to give cardinals fans a few second to turn away before this next story. >> so painful.

>> the best hitter in baseball is now l.a.-bound. albert pujols said a monster contract with the los angeles angels. second richest contract ever. he was a three-time mvp, two-time world series champion with the cardinals and, how much money do you need? he won the world series. had a great team, had great managers. people loved him in st. louis and st. louis offered him what? $200 million other nine years? so he with went to l.a. for $54 million which doesn't sound like much compared to $200 million. >> i hope he has a good money manager. you can do a lot with $250 million. >> always thinking of the business angle you. >> i know. up next on "american morning," european leaders say they have a deal to fix the

region but britain refusing to sign on. guess who might have the compromise plan on taxes? jay-z. poppy harlow goes one on one with the hip-hop mogul. 14 minutes past the hour. as the years go by, some questions loom large.

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today was meant to be the day europe finally got its financial crisis settled. the european union announced they are moving forward without britain's support. joining me now from brussels, richard quest. david cameron said he's so glad they're not using the euro and he's really trying to protect his own constituency, basically the city of london. right? can there be progress without britain on-board? >> that is going to be the big question. basically what we've discovered in the last couple of houfrs is that all 17 members of the euro an even other european union members will all sign up to this new deal. it seems the single country

holding out and not willing to go down the road is britain that is refusing to let the deal become european unionwide. what's that mean in practice? it means britain will be on the sidelines basically saying to the rest of them you can't use the commission, you can't use the european courts, you can't use this. you can have your own little club or big club but you can't call it a european club. it is as if the united states was standing on the side saying to the rest you can't have all the other institutions available to you because we're not involved. how is this going to work in practice? that is the nightmare that they're now about to enjoy. >> it is a nightmare. i can look back to the heat of the financial crisis in the united states. right? when the u.s., henry paulson, the treasury secretary, basically called his counterparts in england and said, barclays is going to buy

lehman brothers, it will solve a lot of problems. what did the brits say? they said we don't want any part of your problems. there are those who say this is what it looks like, it looks like the uk is trying to wall itself off, it wants to enjoy the -- >> no. >> okay. correct me then. >> no. because imagine to take your analogy, imagine as indeed the u.s. has had to face it the financial tax was suddenly to come along again and somebody said i think wall street, new york and the u.s. financial markets need to have a financial tax imposed upon them. the u.s. treasury secretary tim geithner and the fed would rightly say, you know where you can shove that idea. but what the europeans basically wanted to do was exactly that to britain. yes, they can have their club but what they've said is, part of the deficit, part of the fiscal compact was a financial tax and david cameron, who of course represents the uk which

has the city of london, the second or first largest financial market depending on your ego said no. >> second largest. >> the real core issue, christine, is how does this fiscal compact, this deficit, this greater innovation. how will it actually operate in practice. once again europeans have come to a principle, now the devil's in the details. the second thing is how much of a spoiler cameron and the uk will be on the sidelines throwing rocks, sticking spokes in the wheels, doing all the sorts of things that in the past have made them -- >> it is all about -- it is all about -- each of these countries has their own national interest. that's what's so tough. that's the crisis in the eurozone. >> right. and you imagine a national association of governors meeting in the united states where one

wants to do something and the other says, not on my watch, you're not. not in my area you're not. what the europeans are saying, it is time to go to that next level up. it is not fiscal union yet, it is a fiscal compact. the problem is, can they give up the sovereignty? i promise you this -- whatever they have agreed here today, or whatever deal has been cobbled together, it still has to have flesh put on the bones and you can bet your life that sarkozy, the merkels, the spanish, everybody else will be wanting t little piece of the pie. >> they will. i think it will be treacherous going forward. one step forward, two back. don't think everything is fixed. >> that's it. >> richard quest, nice to see you this morning. >> i so enjoy him.

i like that about richard quest. just ahead, new video of a retire fbi agent who vanished nearly five years ago in iran. he's on tape. he's pleading for help. we'll show you the tape. it is 22 minutes past. tdd# 1-800-345-2550 let's talk about the personal attention tdd# 1-800-345-2550 you and your money deserve. tdd# 1-800-345-2550 at charles schwab, that means taking a close look at you tdd# 1-800-345-2550 as well as your portfolio. tdd# 1-800-345-2550 we ask the right questions, tdd# 1-800-345-2550 then we actually listen to the answers tdd# 1-800-345-2550 before giving you practical ideas you can act on. tdd# 1-800-345-2550 so talk to chuck online, on the phone, tdd# 1-800-345-2550 or come in and pull up a chair.

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good morning. 26 minutes after the hour. most european leaders have agreed to deal to solve europe's debt crisis even though britain refuses to sign on. the treaty will only apply to countries who use the euro currency along with six other countries who wish to join the euro one team. br european markets higher this morning. also overnight the majority's eu leaders agreed to funnel ai an additional $250 billion to the im ff to boost i

economy. commodities falling, gold prices down sharply, all because the european central bank said it wouldn't step up the buying of eu government bonds to help boost the markets. toyota slashing its annual profit forecast by more than half after the destructive floods in thailand hurt production. toyota's also expecting it will sell fewer vehicles this year than it had originally predicted. the japanese carmaker is on track to lose its title as the world's largest automaker. why pakistan, a key u.s. ally, is considering beefing up its air defenses along the boarder with with afghanistan. "american morning" back after a break. [ sniffs ] i have a cold. [ sniffs ] i took dayquil

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welcome back. half past the hour. time for the morning's top stories. we-opening old wounds. a vigil held at virginia tech university after another deadly

shooting on campus. two people are dead. a police officer and the apparent gunman. virginia tech leaders say a new alert system work well. the first campus warning came within minutes of the first call to police. a system that didn't exist four years ago. members of the european union announced this morning they are pressing forward with a new deal to save the euro without britain's support. among other things the new deal calls for stricter fiscal and financial discipline. a majority of eu leaders also agree to lend an additional $267 billion to the imf to boost its bailout fund. a pakistani lawmaker tells cnn that country is considering beefing up its air defense system along its border with afghanistan. the move would be in response to a nato air strike that killed 24 pakistan pakistani soldiers last month. in a few months, more an

pakistan's plan. he vanished in iran five years ago. this morning for the first time we are seeing a tape of retired fbi agent robert levinson. he's pleading for help. it is believed he's being held hostage by someone. the tape was received by levinson's family last month. they posted it online today. levinson vanished from an iranian resort town in march 2007. in the video he states he's been held in captivity for 3 1/2 years which would mean this tape may well be over a year old and he was already in dire need back then. take a look. >> my loving, loyal wife christine, and my children, and my grandson. and also for the united states government. i am held here for 3 1/2 years. i am not in very good health. i am running very quickly out of diabetes medicine.

i have been treated well. but i need the help of the united states government to answer the requests of the group that has held me for 3 1/2 years. >> levinson's family also released a videotaped statement along with that video and here's part of that. >> i am making a plea to the people that are holding my father. my mother has received your messages. please tell us your demands so we can work together to bring my father home safely. >> bob, i will continue to discovering i can to bring you home alive. all i want is for our family to be whole again. we love you, we miss you every day. we will not abandon you. >> as early as last march secretary of state hillary clinton announced there is evidence levinson may still be alive. clinton did not give the indication who may be holding

him but asked the government of iran for help in rescuing him. levinson never state who had was holding him either. he said "the group" that has me. in pakistan now, that country's said to be considering plans to increase its air defense system along its border with afghanistan. >> this would be in response to the nato air strike that killed 24 pakistani soldiers last month. our reza sayah is live in islamabad. are lawmakers there suggesting that nato attack was deliberate? >> reporter: well, they're stopping short of categorically saying this nato attack was deliberate but they say it looks like it was deliberate because there is still no explanation why pakistani soldiers would be targeted on pakistani soil. i think it is their way of maybe putting a little refrepressure washington. i think what's important to point out to the viewers at home

is this is no indication that pakistan is getting ready to go to war with the u.s. they aren't going to start shooting down u.s. jet fighters and helicopters. this is their way of saying we're angry and we need an explanation and it is an incident that's real will you plunged relations between islamabad and washington to a new low. the incident of course last month, you had nato forces kill 24 pakistani soldiers on pakistani soil. it is really not clear exactly what happened, why this happened. pakistan aposition is there is no good explanation. they know knew exactly who they were shooting at. nato and u.s. officials have come out with messages of condolence an regret but they haven't exactly said we're sorry suggesting that they may have a different version. they say they're still investigating. even so, the public here is outraged and i think this rhetoric by the government is their way of taking a tough stance

stance. they can't afford to look weak and tolerance when 24 soldiers are killed in an air strike. >> relations are bad between pakistan and t united states. >> reporte where does the relationship go from here? >> reporter: when is the last time relations were good between islamabad and washington? it's always been a difficult relationship. this year especially. they've somehow managed to overcome seemingly insurmountable crises with the cia contractor coming here and killing two pakistanis, the raid on the bin laden compound. somehow they've overcome these crises. it looks like somehow they're going to do the same with this one because these are two countries that still need one another but certainly expect a rough pass for the coming weeks. >> all right. reza sayah reporting live for us this morning, thank you. still to come -- the iraq war is ending but it is a double-edged sword for returning veterans who cannot find a job. jay-z on washington and the

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cnn's casey wian reporting in-depth this morning. >> reporter: first day on the job. here we go. >> reporter: army veteran kyle lozano preparing for a new job. he's driving a milk truck now in southern california. >> i get up, go to work at night. ile don't feel like is up a bum. >> reporter: this is his first steady job since 2009. >> i was applying, people wouldn't hire me. they were just like you don't have the experience.

>> reporter: 11.5% of veterans who served after 9/11 were unemployed last year according to the labor department. that's 50% higher than veterans who served during the first gulf war. >> 1% is white, 2% is blue. >> reporter: he was working because the dairy owner wanted to help a veteran but there's less government assistance available today, says michael, a vietnam vet whose organization helps veterans find work. >> it used to be where the government would pay for training subsidies and wage subsidies. now the most you get is maybe a tax credit. >> army staff sergeant starwin spent seven months looking for a job after her iraqi deployment without a single interview. she tried changing one entry on her resume from united states army to united states government. that help her land interviews but no job. >> the simple fact that someone volunteers for their country and has this plethora of experiences that no one else really could ever have without living in

their shoes should be seeing a complete affect to any organization. >> reporter: now she helps female veterans find jobs. november's unemployment rates for post-9/11 female vets was nearly 19%. one potential employer said she might be a liability if she ever developed post traumatic disorder. >> that dialogue was infuriating. there are ways you learn to cope and there are ways we learn to manage the symptoms and that doesn't mean that we're any less capable of doing the job. >> reporter: lozasno is being treated for ptsd. but with a young family, he's happy to be driving a truck armed only with dairy products. casey wian, cnn, los angeles. you can find more information on job training programs at dol.gov/feds. hip who. icon, business mogul jay-z has

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is the human element. ♪ 45 minutes past the hour. here are your morning's headlines. markets open in about 45 minutes. right now u.s. stock futures are trading higher after a majority of european leaders agreed to

work on the debt crisis. jerry zsandusky was arreste wednesday on ten additional charges of molesting children, his wife denying she ignored cries for help from one victim. another deadly shoesing on the virginia tech campus. virginia tech leaders say a new alert system work well. a new report from the environmental protection agency finds that chemicals used in fracing natural gas wells are to blame for water pollution in wyoming. the epa tested the water supply near a wyoming natural gas drilling site. the senate vote down for the proposal to extend the payroll tax break next year. you could lose $1,000 in take-home pay if they don't agree on a deal by the new year. "american morning" is back after a break.

poppy harlow is joining us with more of her one on one with jay-z. >> we all love that song. but we had a chance to sit down with him yesterday. he announced he is going to

headline carnegie hall, the first hip-hop artist to ever do that. that's going to happen in february. all the proceeds go to the sean carter foundation. that gives scholarships to didz w kids who don't get a break. it is very important to him. we also talked to him about his opinion on whether the rich should pay more in taxes and also the occupy movement. pretty interesting insight. take a look. >> me personally, i wouldn't mind paying more taxes if it went to the things that really mattered. if it went to education, people with -- in poverty and if it went to the right things. you know? i wouldn't mine. i think it should be more -- it should be clearly defined. you know? clearly defined where all the money's being allocated. because you can understand paying so much for taxes and then things not improving,

you're like where's everything going to? like -- that's what i'm saying. should be open accounting of where everything is going to. i'm sure people if it was for health care and for education and to help people. i don't think -- i think most people with a conscience and with some integrity and moral fiber wouldn't have any problem paying more taxes. >> the occupy wall street movement. you've been supportive of it. you've got occupy all-street shirts out there. not financially supporting it but the message. i wonder what your take is on what we're seeing develop in this country. >> i think it is saying a lot all over the world. that people can get their voice out there and fight for better world, education, health care and verty. there are so many different

other fights that we must take on that we just need to -- it's good. it's a good thing that young people are getting ow and getting their voice heard. >> one thing we also talked about, guys -- i found this very interesting -- poverty. we all agree on one thing, that's that education brings people out of this vicious cycle of poverty and he's pushing for more education for kids. i asked him how he thinks president obama who he publicly supports is doing on closing that wealth gap. how is the administration doing? the president's out front just this week talking about it. his answer was so interesting. he said we can't leave it all up to the government. we have to govern ourself, we as private individuals have this responsibility. the government's doing all right, but we need to step in. i thought that was so interesting. he didn't just say yes we shall pay more taxes across the board. he says i can understand the argument that if we don't know where the money's going or there's not a good accounting of

it, why should we pay more? i am willing to pay more if it goes to the right thing. it was a very centrist answer. i'm always surprised when we sit down with him how articulate his answers are and how he is just -- i guess not what you would expect in terms of a celebrity. he's very engaged, rofd if politics and i just wonder db i should have asked him if we'll see him in washington lobbying congress. >> he's a great businessman, too. >> hugely successful. >> it goes to show you, we always think of people having opinions on the extremes. right? when most americans don't. they end up somewhere this that spectrum and maybe he's a good example of that. >> he represents that as well. interesting. we've got a lot more of the interview with jay-z on cnn money. >> thanks, poppy. counting down to sunday night's live broadcast of cnn heroes, an all-star tribute hosted by anderson cooper. dan walrus, one of last year's top ten, builds free homes for

wounded veterans. >> the program has expanded to five states and given homes to more than 30 families now. as his profile haz ri has risen one of his supporters and become the country's biggest stars. >> being the top ten cnn hero was just very humbling. true heroes are servicemen and women who answer the call. after the show aired, things just took off for us. >> we were contacted. our stories getting out there every day. we're out here in l.a. to visit a real good friend of ours. he's our national spokesman. he's involved with "dancing with

the stars" and he wanted us to come out and be with him. >> i've been watching you on tv and you've been doing amazing. j.r. was a soldier in iraq, one of our wounded heroes. >> my can voi went over a land mine. by the time they pulled me out of my vehicle i was burned over 40% of my body. just made a decision to just be positive, smile and make the best of it. asdy that, more opportunities came to me. whatever war you are in this life, can you win the battle. >> thank you. >> jared brings a lot of attention to these young men and women that have to deal with these incredible injuries. you being here just helps our cause. >> it is amazing how far we've come. >> last year at this time we were four, five homes. we're 32 homes now. it is just unbelievable. we're changing lives. there are 43,000 injured heroes

out there. our goal was to build every one of them a home. >> keep doing it, man. we need a lot more homes to be built. ♪ it's easy to see what subaru owners care about. that's why we created the share the love event. get a great deal on a new subaru and $250 goes to your choice of 5 charities. with your help, we can reach $20 million dollars by the end of this, our fourth year.

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welcome back. do you work for a congressman? you're drinking on the job? and you value that job? don't tweet about it. three aides to democrat rick larson lrnd that the hard way. they were fired after posts from

their accounts were picked up by a right-leaning news website. here are a few of the gems. "i'm pretty sure i couldn't pass a field sobriety test right now. looking forward to a day at the office." here's another one -- dear taxpayers, i hope that you don't mind i'm watching youtube clips of nirvana at my government job." this is my favorite -- my co-worker just took a shot of jack crouched behind my desk. we've unabashedly given up on just about all things work related. >> just remember, good friends don't let friends -- how would i say that? >> friends don't let friends tweet drunk. especially at a government job. a controversy over a christmas display. a nativity scene in front of a texas courthouse sparking outrage all the way in wisconsin. a wisconsin atheist group says the scene violates the separation of church and state

and they want it gone. a henderson county lawmaker says this display ain't going anywhere without a fight. >> when hell freezes over. i'm an old country boy. you come to my house looking for a fight, you're going to get one and that's from the bottom of my heart. >> and i bet that nativity scene will stay exactly where it is. >> i think so, too. truly spectacular video of lava flows in hawaii. kilauea is one of the most acti active volcanoes on the planet. >> the pictures are awesome. >> i can't believe one person lives by that volcano. just one. >> you wouldn't have much of a garden up there. that is going to do it for us for the week. thanks for watching. >> you are