gridlock. senate republicans pledge to stall any lame duck legislation holding up everything from jobless benefits to repealing don't ask, don't tell. wanted. wikileaks founder winds up on interpoll's most wanted list involving aelgszs of sexual misconduct. a giant system threatens violent weather in the east. this is the "cbs morning news" for wednesday, december 1st, this is the "cbs morning news" for wednesday, december 1st, 2010 captioning funded by cbs this morning long-term unemployment benefits begin to run out for nearly two million americans. an effort to extend them failed tuesday in the senate. there are nearly 15 million

americans who have been out of work for more than six months. whit johnson is in washington with more on this. good morning, whit. >> betty, good morning. this isn't the first time democrats and republicans haven't been able to agree on how to extend unemployment benefits. they've argued the same points for two years. they still haven't worked out their differences and today more americans will suffer. 53-year-old earl searight's unemployment insurance expired at midnight. one of hundreds of thousands of americans now without >> i hope something will be done and they'll be able to hear the voices of the people. >> reporter: lawmakers could have extended the benefits tuesday but republicans blocked the vote. they say democrats waited too long to act. >> i tell you what, it's not the way to do business in the united states senate. and if it is, it needs to change. >> reporter: unemployment insurance usually expires after six months but congress extended coverage for up to 99 weeks when the recession kicked in.

but with the federal debt over $13 trillion, gop leaders only support extending the benefits if they're paid for. they want to cut the budget elsewhere to cover the cost. if congress fails to act, about two million americans will lose their benefits by the end of the year and another two million will be added by the end of february. >> my main concern now are the people that i know, people that we work with and what they're going to do with their lives once these benefits are done. >> reporter: critics say some people abuse the benefits that average about $300 a month. >> i know people literally say their job is unemployment and laugh about it. >> reporter: democrats vow to keep trying to extend the benefits and they promise to make payments retroactive for those not getting checks right now. extending unemployment benefits for another year would cost an estimated $60 billion. there are currently about 8.5 million people who receive those benefits. betty? >> all right, whit johnson live in washington, thank you, whit.

it appears republican lawmakers are following the advice of former first lady nancy reagan, just say no. officials say senate republicans have a strategy to block just about every piece of legislation democrats try to pass in the current lame duck session of congress. the gop leadership has collected signatures on a letter pledging to carry out the plan, applying to legislation unrelated to tax cuts and spending. two issues that dominated the meeting between the president and gop leaders tuesday. joel brown reports. >> reporter: it was a search for common ground in a divided washington. republicans and the president said it was a good start. >> the president, i think, put his best foot forward and says we realize we've got to produce results. >> i thought that people came to it with a spirit of trying to work together. >> reporter: it was the first face-to-face meeting since the gop's big gains on election day. they won a majority in the house and came close in the senate. boosted by those victories, the

party wants a bigger say in washington's agenda, starting with tax cuts. >> we ought to treat all taxpayers the same. >> reporter: they're pushing the white house to make the bush-era tax cuts permanent for all taxpayers. but up until now, the president has resisted. he wants to extend the cuts only for families making less than $250,000. but, after the meeting, he signaled there may be room for compromise. >> i appointed my treasury secretary, tim geithner, and my budget director, jack lu, to work with representatives of both parties to break through this logjam. >> reporter: both sides brought other items to the meeting as well. congress still needs to pass legislation to fund the government and the president's pushing hard for the senate to sign off on his nuclear arms agreement with russia. but, the tax cuts are dominating the discussions, because if both sides can't strike a deal by the end of next month, everyone's taxes are going up. joel brown, cbs news, the white

house. >> today, the chairman of president obama's deficit reduction commission officially unveiled their plan to cut the federal deficit. the controversial proposals include a gradual increase in the social security retirement age and curtailing certain tax breaks like the deduction for mortgage interest. so, chairman alan simpson doesn't expect the plan will be well received. >> they're going to rip this thing to shreds and do it with zeal. we will now in the next few days to the same old crap i've been dealing with in all my public life, emotion, fear, guilt and racism. and when people use emotion, fear, guilt and racism on you, you use facts on them, which really irritates them. >> the chairman acknowledged the plan will even face resistance from the 18 commission members. in other news, wikileaks founder julian assange on interpoll's most wanted list for alleged sex crimes in sweden.

he denies the allegations. his whereabouts are still unknown. meanwhile, the u.s. is considering criminal charges against assange for the release of a quarter million sensitive state department documents. elizabeth palmer has more. >> reporter: love him or loath him, julian assange provokes passion at debate. he was born in townsville, australia, in 1971. raised by his mother, he was home schooled and said to be fiercely intelligent and a skilled computer hacker while still in his teens. by 2007, he'd founded wikileaks to expose bureaucratic secrets globally but it was this year he and the site rocketed to fame with a video posted online showing an attack on iraqi insurgents that killed both journalists and civilians. assange stepped into the spotlight to defend the leak and the rumor mill went wild calling him a paranoid control freak who slept in a different place every

night. at a panel discussion in london, i asked him how he liked the attention. you have become the story almost despite yourself, and i think that -- i think we'd all like to hear you what have to say about that. >> so, you want me to become even more part of the story. >> reporter: i do. >> hmm. people say don't you find all this attention on you annoying and very difficult? well, yes, it's annoying, yes, it is very difficult. >> reporter: if it's so difficult, what makes him tick? colleagues say it's conviction. >> what comes across is a very firm, very firm belief that secrets are not often a good thing and that society doesn't benefit from secrets. >> reporter: this is a man with a mission, to keep on leaking. up next, he says, thousands of documents from some of the world's biggest banks. elizabeth palmer, cbs news, london. just ahead on the morning news, a massive storm gets ready to slam the east with heavy rain

and high winds. plus, a new chapter in the growing ebook industry as tech giant google gets into the action. first, though, katie couric has a preview of tonight's "cbs evening news." cutting the deficit. should there be a cap on medicare spending? our special series brings you inside a new report and breaks down some of the tough choices we now faets face. so, that and more tonight only on the "cbs evening news." this was me, best ribs in nelson county, but i wasn't winning any ribbons managing my diabetes.

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people, in 2009, about 1.8 million people died from aids-related illnesses compared with just over two million in 2004. the east coast is getting hit by a major storm today. heavy rain, snow, and gusty winds are blasting the southeast through the mid-atlantic states and into the northeast. isolated tornadoes are possible. the storm that pounded the midwest yesterday could bring up to six inches of rain in some places on the eastern seaboard and may cause some flooding. a toddler was thrown to her death at a maryland shopping mall. the child's grandmother is charged with her murder. police say she threw her 2-year-old granddaughter from a shopping center walkway monday. the girl fell about four stories. it is not known what prompted this action. the father of three missing michigan boys is expected in court today. john skelton was arrested yesterday in o ohio on three counts of parental kidnapping. police say he hasn't said much. his sons, 9-year-old andrew,

7-year-old alexander, and 5-year-old tanner, have not been seen since thanksgiving. the search for the boys resumes today. police say they don't expect a positive outcome. on the "cbs moneywatch," stocks in asia edged up this morning. ashley morrison is here in new york with much more on that. good morning, ashley. >> good morning to you, betty. asian markets saw late-day rallies japan's nikkei added half a percent, while hong kong's hang seng gained more than one percent. today wall street gets the latest on the labor market and construction spending. tuesday stocks fell to finish the month on a down note the dow lost 46 points while the nasdaq was down 27. those losses added to a november to forget. for the month, the blue chips fell one percent, the nasdaq, about half a percent. analysts expect good news when automakers release sales figures this morning. ahead of the numbers both gm and chrysler plan to hire a thousand engineers and researchers. chrysler will add the jobs the next four months and gm will

spread them over the next couple of years. the first chevy volt rolled off the assembly line tuesday. the all-electric car already named the motortrend car the year even though it hasn't yet hit showrooms. when it does it will have a sticker price just under 41,000 but buyers will be eligible for a $7500 tax credit. google's trying to shake up the ebook market. according to the "wall street journal" the tech giant in the final stages of launching google editions. the estore would allow users to purchase additional books with any device with access to the internet. google will feature about 500,000 titles. the project is expected either by the end of the year or in early 2011. bob dylan fans need deep pockets to get a piece of the folk singer's memorabilia. his original handwritten lyrics for "the times, they are achangin'" are headed for the auction block here in new york si next week. written in pencil on a sheet of

scrap paper, the classic 1960s folk protest song was the title track from dylan's third album. it could sell for as much as $300,000. and the holiday office party is making a comeback. kind of. 16% of companies surveyed say they plan on year-end celebrations for their employees, up 62% but -- up from 62% last year, but only 45% say they plan to serve alcohol. that is down from 57% a year ago. so, betty, i guess it's a byob. maybe we're better off without alcohol, who knows. >> byob at the office party, don't think so. not a good look. all right, ashley. thank you so much, joining us live in new york. straight ahead your wednesday morning weather and in sports the slumping lakers definitely aren't playing like nba champs. [ female announcer ] with rheumatoid arthritis, there's the life you live... and the life you want to live. fortunately there's enbrel, the #1 most doctor-prescribed biologic medicine for ra.

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if you live for performance, upgrade to castrol edge advanced synthetic oil. with eight times better wear protection than mobil 1. castrol edge. it's more than just oil. it's liquid engineering. ja here's a here's a look at the weather in some cities around the country. new york, heavy rain, 60 degrees. miami, partly cloudy, 83. chicago, mostly cloudy, 30. dallas, sunny, 62. los angeles is going to be a sunny 69 degrees. time now for a check of the national forecast. the latest satellite picture shows a massive storm system stretching from canada down to the gulf of mexico. later today, winds will be howling across sections of the east coast. heavy rain is expected for many as the major storm pushes across the country. the south cools down just a bit.

in sports, another lakers loss. mike conley scored 10 of his 28 points in the fourth quarter against los angeles. the grizzlies played tough defense at the end and beat the defending champs 98-96. in cleveland, rondo of boston had 23 points and 12 assists against the cavaliers and the celtics beat cleveland 106-87. it was boston's fourth straight victory, and they remain in first place in the atlantic division. right behind them in second place, the knicks, who got 35 points from amar'e stoudemire against the nets. new york held off new jersey 111-100. the knicks have won 7 of their last 8 games. and tempers flare when richard jefferson of the spurs made an alley-oop and landed on the shoulders of warriors' david lee. both got technical fouls. tim duncan had 15 points, and san antonio beat golden state 118-98.

the spurs have the best record in the nba at 15-2. and new orleans saints quarterback drew brees named "sports illustrated" sportsman of the year. brees was honored for his accomplishment both on and off the field. he led the longsuffering saints to their first super bowl title in february and he's well known in new orleans for his charity work helping the city recover in the aftermath of hurricane katrina. congratulations to him. when we return, another look at this morning's top stories and it is time to lift don't ask, don't tell, or is it? troops weigh in on the matter. wait for me! there it is. ah! hurry up. you're heavy. are you sure these letters will get to santa? yes, of course. hold still. almost there. a little bit higher. i can't hold you up much longer. ah! whoa! [ all giggle ] ♪ hi, fellas. hi, virginia. why are you on the floor? [ female announcer ] bring your letter to santa into macy's and we'll donate to the make-a-wish® foundation.

together, we'll collect a million reasons to believe. and we'll donate to the make-a-wish® foundation. at pso, we set out tot your dog to discover the science inle. some of nature's best ingredients. we created purina one with smartblend. new, delicious shredded morsels and crunchy bites, with real meat, wholesome grains and antioxidants, for strong muscles, vital energy, a healthy immune system, and a real difference in your dog. purina one improved with smartblend. discover what one can do. millions of americans -- set to lose their jobless benefits just before the holidays. what it will take to get the money flowing again. plus... forced to get physical. the power parents now have if their kids' p-e classes aren t making the cut. don't throw away that old gadget. how to turn your trash into extra cash. and.. the lawsuit facing a bay area theater chain.

join us for cbs 5 early edition ... beginning at five. ,,,, on the "cbs morning news," here's a look at today's weather. warm weather moving up the eastern seaboard along with a lot of rain. behind the system, cold and dry conditions most of the west will get sunshine and the northwest will see more rain and snow showers.

here's another look at this morning's top stories. long-term jobless benefits begin to run out today for some two million americans. the benefits had been extended for 99 weeks, but congress failed to take action on tuesday. the chairman of president obama's commission to reduce the deficit unveiled their plan today. it includes proposals to raise the social security retirement age. the senate armed services committee holds hearings today into a newly released study that examines gays in the military. the pentagon reports surveying 115,000 troops found most are okay with repealing don't ask, don't tell. kendis gibson reports. >> reporter: the pentagon says it sees little risk in overturning don't ask, don't tell, even in a time of war. >> repeal of don't ask, don't tell, though potentially disruptive in the short term, would not be the wrenching, traumatic change that many have feared. >> reporter: more than two-thirds of troops surveyed

say they had no problem with allowing gays and lesbians to serve openly. opposition is higher in army and marine combat units. but military leaders are convinced they can make it work. >> the key to success, as with most things military, is training, education, and, above all, strong and principled leadership. >> reporter: at least 13,000 men and women have been discharged from the military for violating don't ask, don't tell since the policy took effect in 1993. air force major margaret witt was forced out six years ago and hopes to get her job back. >> all i ever wanted to do was to be there for the troops and, with my other medics when they needed me. >> reporter: president obama urged congress to repeal don't ask, don't tell by the end of the year. but many republicans oppose a change. >> we have a system that's working now. and so, i would really favor not changing the policies we have. >> reporter: if congress doesn't

act soon, it's likely that the courts will. kendis gibson, cbs news, los angeles. this is the "cbs morning news." [ male announcer ] for frequent heartburn relief, nothing beats prevacid®24hr. just one pill helps keep you heartburn free for a full 24 hours. prevent the acid that causes frequent heartburn with prevacid®24hr, all day, all night. nothing works better.

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now, a stark look at one of the major obstacles educators face in this country, getting students to successfully graduate from high school. in some schools, the dropout rate is near 60%. byron pitts visits a school that has turned around its drop-out crisis thanks to an innovative program. >> reporter: did your school day ever start like this? not likely. but chicago talent development charter high school is not like most places. centered in one of chicago's toughest neighborhoods, it's a new approach to an old problem. >> our goal is to make it a game changer. >> reporter: with one million kids dropping out of school

every year johns hopkins researcher robert balfans wants to retool what he calls drop-out factories. >> how bad is it? >> in a word, if you live in a high-poverty environment, it's really bad. your chances of getting out with a good education and having a shot at the american dream are at best 50-50. >> reporter: he created diplomas now, a program aimed at tackling what he calls the abcs, attendance, behave and course performance the warning signs for future dropouts. >> you guys are really doing great. >> reporter: students falling behind on any of the abcs are flagged weekly early intervention meetings. because there is rarely just one program there is a program to support students in class and in their neighborhoods. even teachers receive extra training. in another program, near-peers as they're called like jason are tutors and mentors mostly 20 somethings not far from school themselves. they shadow the same students

from class to class. already, it's made a difference. at chicago talent, average daily attendance at 90%, eight points above chicago public schools. and so far, 92% of ninth graders are on track to graduate. 28 points above the district average. >> he'll listen and help, help me get through it so i can come to school the next day. >> reporter: it was as if he was saying you are his safe place. >> i mean, that hits me right here because that's the biggest part of our job is relationship building. so, finding something that can become something greater is, you know, the thing i focus on and my team focused on and that we do very well at the school. >> reporter: diplomas now is currently in 20 schools in 10 a new $30 million federal grant could mean more schools in more places, places where a kid is encouraged to dream, not drop out. byron pitts, cbs news, chicago.

coming up on "the early show" more on the summit of congressional leaders at the white house. we'll hear from press secretary robert gibbs. and an update on actor michael douglas and his recovery from throat cancer treatment. plus help for simplifying your cell phone bill and choosing the right plan to save you money. that's the "cbs morning news" for this wednesday. thanks for watching. i'm betty nguyen. thanks for watching. i'm betty nguyen. have a great day. -- captions by vitac -- www.vitac.com

what we're lea new this morning, a prius hits a pedestrian in a deadly crash on the 101. what we're learning about the man who was killed. plus, cut off before