it's tuesday, august 18th. this morning, economic reality. a down day for stocks and empty shopping carts in stores. did the recent rosie view of the recession come too soon? gun rights. bearing arms outside an appearance by the president. are second amendment supporters a sign of america's new culture war? and dirty money. a shocking discovery about 90% and dirty money. a shocking discovery about 90% of the nation's paper money. captions paid for by abc, inc. good morning. and thanks for being with us. we begin with the developing story from afghanistan this morning, where the presidential palace in kabul has been hit by mortars. >> no one was hurt in the attack, which comes, of course,

just two days before presidential elections there. the police headquarters was also hit. the incident follows an attack yesterday, which killed an american service member and a civilian working for the military. the taliban has threatened to disrupt the elections. and warned afghans not to go to the polls. abc has a team of reporters in kabul covering the election, who will stay on top of this story. the other big story this morning, the economy. despite the worst day on wall street since the early july, asian markets managed to close higher in today's trading. but only by a slim margin. >> investors are worried that consumers are not parting with their cash. for a look behind the number, emily schmidt joins us from washington. >> reporter: for weeks now, investigators have looked at the rallying markets as a sign the economy's headed in the right direction. the question today is, what happens when stocks go the other way, instead? when the dow dropped 186 points monday, down 2%, wall street's challenges suddenly resembled

those of 2,000 virginia job-seekers. >> you just can't quit. have to keep working. hopefully find something. >> this is my tenth one. >> reporter: dave smart spent his tenth job fair in twoe-hour lines, hoping to land that elusive next job. >> there's no i.t. jobs here. especially for us older workers. >> reporter: unemployment figures show nearly 250,000 jobs disappeared last month. home foreclosures are at a record high. consumers who who have money aren't spending it. lowe's just reported its earnings are down 19%. back-to-school shopping has dropped 5%. >> we're still running at confidence levels that are consistent with the wost of the recessions of the early 1980s. >> reporter: still, many economists say we're out of the recession. fewer credit card defaults. and a market that has rallied for months, despite monday's loss. >> we think that the s&p 500 could drop from its closing high of 1012, just the last week,

down to about 945, 950 or so, before advancing once again and possibly hitting a recovery high. >> reporter: a we should get a few more small clues about the direction of this economy later today. we're going to get some new home construction numbers. also, earnings reports from retailers like home depot and target. jeremy and vinita back to you. >> emily schmidt, from washington this morning. thank you. health care reform is looking like a no-win situation for president obama. the president signaled he might be willing to back off to appease conservative critics. now, his liberal allies are crying foul. and the white house insists the president's position has not changed. confused? here's viviana hurtado. >> reporter: the administration flatly rejects that the president signaled a willingness to drop the so-called public option, from health ca reform legislation, when he said this on saturday -- >> the public option, whether we have it or we don't have it, is

not the entirety of health care reform. this is just one sliver of it. one aspect of it. >> reporter: but a government-run option is a crucial aspect. and is threatening to derail this latest attempt to overhaul the health care system. in phoenix, where the president addressed the vfw national convention, and at town hall meetings across the country, the opposition has gained momentum. >> it's government control of our -- >> keep the government out of it. we're doing just fine. thank you, sir. >> reporter: supporters are just as riled up about the need for a government-run option. >> the president thinks we're going to get the votes without public option, he has another thing coming. that won't pass the house. >> reporter: new york congressman, anthony weiner said, not including the public option, could cost votes in the house, which could mean defeat for health care reform. >> some of us who got roughed up in town hall meetings and stuck

in there, now feel we have a tire track on our chest where the bus that rolled over us is. >> reporter: viviana hurtado, abc news, washington. while the president was pushing health care reform in phoenix, about a dozen people showed up outside the convention center, openly flaunting their firearms. no crimes were fitted and nobody was arrested. gun advocates say they are exercising their rights to protest and bear arms. while those favoring gun control says these displays are a growing disturbing threat to president obama. the number of threats against presidents obama are similar to those faced by presidents bush and clinton. although it has taken a while to appear, the atlantic's first hurricane is up and running. bill has grown into a category 2 storm, packing winds of up to 100 miles per hour. while bill is well out at sea, it is gning strength. and is on track to blow by bermuda by the end of the week. the fbi says it will launch an investigation into the

minneapolis police department and a beating that was caught on camera. images from a squad car dash cam shows six officers punching and kicking a man, while he was held facedown in the snow. police say daryl jenkins resisted arrest after they pulled him over for speeding. jenkins insists he was cooperative. but he ended up in the hospital, with half his face bloodied and swollen. in florida, there are new, chilling details in the murders of byrd and melanie billings. documents show that their 10-year-old son was sleeping in the room. the child heard one of the men say to his father, you're going to die. one, two, three. the autopsy shows that byrd billings was shot multiple times in the head and legs. we'll have more on this story on "good morning america." michael jackson-themed merchandise is coming to a store shelf near you. a judge in california approved the deal yesterday. after the hearing, an attorney for jackson's mother, katherine, said nurturing jackson's legacy

is something better handled by family members. >> trying to make a quick buck counteracts what the family is trying to do and what all of us should be trying to do. and that's simply do the best thing for the career of this deceased artist. >> the attorney also said katherine jackson is considering a wrongful death suit against dr. conrad murray, the likely target. investigators looking into michael jackson's death had been focusing on dr. murray, as well. this morning, the denver area is bracing for another summer storm, after being pounded by severe weather. it looked more like the middle of winter in the city last night. there were winds of up to 16 miles per hour, lightning and some drenching rain. and now, for this morning's weather from around the nation. scattered showers and thunderstorms from new mexico, all the way to vermont. colorado and kansas will be the hardest hit with flooding, hail, gusty winds and a chance of tornados. stormy also from florida into the mississippi and tennessee

valleys. and the heat wave continues in the northeast. >> a near record high of 94 in boston, 92 in new york. 80s in chicago, st. louis and detroit. portland height r heats up to 94. sacramento, 99. phoenix, the hot spot today at 109. and it's 90 in new orleans. 99 in dallas. and coming up, dirty money. a closer look at what is lurking on the nation's currency. plus, the biggest case of identity theft ever. 130 million accounts. three men are under arrest. so, how did they do it? and a major setback for the upcoming flu season. less swine flu vaccine than expected.

and recapping your top business story. stock markets have stabilized this morning, a day after a big global sell-off. tokyo's nikkei average managed to finish with a small gain today. hong kong's hang seng is higher. in london, the ftse opened higher. wall street is looking to rebound from its worst day since early july. the dow plunged 186 points, closing at 9135. and the nasdaq tumbled 54 points to close at 1930. a former government inform manse has been charged with masterminding what's believed to be the nation's biggest credit card breach ever. albert gonzales and two russians were indicted on monday, accused of swiping 130 accounts with plans to sell them. they allegedly hacked into networks for retailers,

including 7-eleven, and hanford brothers. with banks tightening their lending standards, the government extending one of its emergency credit programs. the treasury is adding at least three more months to a program designed to finance auto loans, credit card debt and business loans. the publisher of one of the nation's most popular magazines is filing for bankruptcy protection. reader's digest has reached a deal with some of its lenders. the company is actually not blaming slumping advertising sales. but rather, two underperforming businesses. well, if you're flying over the labor day holiday, expect the airports to be less crowded this year. the airlines are forecast 16 million people will fly on u.s. airlines between september 7th and 9th. that's down from 3.5% last year. and if you're traveling by road, one of the top gpsmakers

is cig signaling an application. turn-by-turn directions. tap and go mapping. one touch navigation for addresses in your address book. the application costs $100. and there's no subscription fee. you can read more about these stories online at abcnews.com. and next on this tuesday morning, fewer flu shots. there's a delay in the swine flu vaccine. and will that mean more people getting sick? and money laundering. you won't

welcome back. these are the latest headlines from abc news this morning. asian markets closed higher, despite a drop on wall street yesterday. the dow lost 186 points. the biggest drop in weeks. in afghanistan, two mortar

rounds landed near the presidential palace at kabul, just two days before the country goes to the polls. and the atlantic season's first hurricane named bill, is now a category 2 storm. packing 100-mile-per-hour winds. it is on track to blow past bermuda by the end of the week. millions of americans are going to have to wait longer for protection from the swine flu. >> only about one-third of the vaccine the country was counting on will be ready by mid-october. that's when the mass vaccination campaign is scheduled to start. here's john mckenzie. >> reporter: it is the single-best hope of slowing the spread of swine flu. but health officials now say this new vaccine will not be available as quickly as planned. instead of 120 million doses by mid-october, there will now be only 45 million doses. with another 20 million arriving each week after that. in short, this vaccination program will be at least a month behind schedule. the government had hoped that almost everyone needing to be vaccinated would have received

their shots by the first week of december. that is not going to happen. >> because of this delay, it's more likely this virus will cause more illness, more hospitalizations and even more deaths in our country than we anticipated. >> reporter: there are five companies making the swine flu vaccine for the u.s. market. health officials say some have been delayed finhing up production of seasonal flu vaccines. but the biggest problem has been how slowly this particular swine critical element of vaccine the production. the net effect? >> i think it's likely we'll focus in more tightly on the priority groups. pregnant women and health care workers will be at the top of the list. as will young children. >> reporter: studentses had just returned to class at this georgia school, when they were welcomed by the swine flu. >> we talked to cdc. looked an their website to see how to handle these things. >> reporter: at duke university, almost half of the varsity football team has come down with flu-like symptoms. as americans prepare for the next wave of this pandemic, they

will be doing so without allhe vaccine that's so urgently need. john mckenzie, abc news, new york. the city of chicago is back in business today. shut down yesterday.vices were no getting your driver's license. no checking out library books. it was the first of three forced furlough days. despite the mid-air crash above new york's hudson river this month, the watserway has acevedew sightseeing status. the spot where the plane splash-landed is now a stop for guide boat tours, whihich inclu a brief video of the landing. employees of the tour companies helped rescue people from the downed air bus line per p. you heard of dirty money. and the latest research shows how dirty. 90% of all paper money circulating in the u.s., shows traces of cocaine. 90%. some of the bills are contaminated by drug use.

but others get dirty inside those currency counting machines that are used by banks. there's no health risk involved. but just like mother said, probably a good idea to wash your hands after handling all that cash. it's a startling number. >> unbelievable. >> it's grown over the course of the past couple years. coming up on "america this morning," sports from espn news. plus, a sex scandal for one of the stars of "grey's anatomy." and a gravity-defying feat that onlookers couldn't believe. a car stuck on the top of a drawbridge. we'll have the details coming up. triglycerides are still out of line? then you may not be seeing the whole picture. ask your doctor about trilipix. if you're at high risk of heart disease and taking a statin to lower bad cholesterol, along with diet, adding trilipix can lower fatty triglycerides and raise good cholesterol to help improve all three cholesterol numbers. trilipix has not been shown to prevent heart attacks or stroke more than a statin alone.

trilipix is not for everyone, including people with liver, gallbladder, or severe kidney disease, or nursing women. tell your doctor about all the medicines you take and if you are pregnant or may become pregnant. blood tests are needed before and during treatment to check for liver problems. pain or weakness, as this can be a sign of a rare but serious side effect. this risk may be increased when trilipix is used with a statin. if you cannot afford your medication, call 1-866-4-trilipix for more information. trilipix. there's more to cholesterol. get the picture.

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sex tape. the tape, floating around the internet, apparently features "grey's anatomy" star, eric dane, his wife and another. they are only shown talking about sex, not engaging in it. a rep for the couple is reportedly threatening to sue anyone who posts the tape. the wife of south carolina governor, mark sanford says, her husband is not a bad person. jennie sanford tells "vogue" magazine, it never occurred to her that he would cheat. she says she feels sorry for the other woman. mrs. sanford says she's forgiven her husband. as for reconciliation, she's leaving it up to soul-search and to see if he wants to stay married. time, now, for sports. from the big league, little league, and preseason action from the nfl. here's mike yam at espn news. good morning. we start with some baseball. specifically albert pujols and the cardinals. matching up against the los angeles dodgers.

top four, cardinals. down 4-0. pujols, the machine teeing off. his 39th home run of the season. we're tide at 1-1. actually, 39 home runs. that leads baseball. top seven, cardinals down 2-1. rick ankiel doing his best puls imprsion. a two-run shot to right. his first home run in 11 game mps his ninth of the year. bottom eight. 3-2, cardinals. chris carpenter just dealing in this one. eight ks over eight innings. cardinals, they're victorious. football, now. eli manning and the giants, open up their preseason against the panthers. ten seconds left in the overtime. hunter cantwell, back to pass. tommy hill, he grabs it. giantsin in dramatic fashion. eli manning played two series. two for three passing. good for 31 yards. jaguars and dolphins squaring off. chad pennington and chad henne.

little convo there. it's henne, completing. 33-yard score for him. henne, 94 yards passing and that td. little league world series. new york/new jersey, playing for that final spot. top six, luke bowerbay. staten island, they win, 4-0. they advance to williamsport. jeremy and vinita, back to you. time, now, for our snapshot of the morning. take a look of this unbelievable photo from sturgeon bay, wisconsin. that's a car, attempting to defy gravity. it stays stuck on the bridge. >> the bridge attenda missed seeing the car when he started putting the bridge up. after seeing the mistake, he lowered the bridge again. and the young woman driver, who i'm sure wasretty shaken up, was on her way down. >> she had to have the emergency brake down. >> i don't think you could have held your foot on the brake that long. >> wow.

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finally this morning, the coveted mirror ball trophy is up for grabs again. vying g toe hohome..ill be

>> a abc hasas unveiled d the nt of "dancing with the stars." this time, a former republican big-wig will kick up his heels, along with the star athletes and entertainers. >> abc's linsey davis has the latest lineup. >> ryan: this dance floor is not for the feint of heart. get ready for the ninth season of "dancing with the stars," as a new cast gets ready to shimmy, shake and samba their way into watercooler chats. >> three weeks of double-elimination. so, we'll lose about half of our cast within that period of time. >> fast and furious. >> it will be a ballroom bloodbath. >> ryan: among the nail-biters, four singers. macy gray, donny osmond, aaron carter and mya. >> she's one of those people that's going to fall in the category of has danced before. >> ryan: of course, there are athletes. nfl hall of famer michael irving, snowboard champion, louis vito. olympic champion swimmer,

natalie coughlin. and chuck liddell. >> you want to be nice to him every time he dances. >> ryan: the biggest dancing cast ever includes actors ashley hamilton, melissa joan hart, and debi mazar. a few of the stars aren't strangers to celebrity tv. kelly osbourne, and mk decascos. models joe anna cube pa, and kathy ireland, will have a chance. and finally, former house majority leader, tom delay. if his dance moves follow his political persuasion, he's unlikely to show two left feet. stay with us for "good morning america," when tom delay will join us live from texas. does the hammer have what it takes to make it on "dancing with the stars"? we'll ask him. >> can't wait to hear what h