wusa9.com. good morning. republican presidential candidates hit the campaign trail with renewed energy following the iowa caucuses. as mitt romney tries so solidify his lead, rick santorum trying to have his newfound support full off a surprise in the nan knit state. john mccain threw his support to mitt romney. we will special with mr. mccain why he i think, mitt romney is the one to beat come november. jon huntsman hope his three daughters who are shaking up the race with their unusual campaign strategy, we will talk with them "early" this thursday morning, january 5th, 2012.

captioning funded by cbs good morning. welcome to "the early show" on this thursday morning. i'm nancy cordes here in new hampshire. >> i'm jim axelrod. this morning, we are anchoring the "the early show" from new hampshire. we will look ahead to us's republican primary here. you know the show you're watching is about to undergo a big change come monday. >> that's right. it's going to be officially relaunched as cbs "this morning," anchored by charlie rose and gayle king and erica hill and we look forward to that. the next stop to the white house is here in new hampshire. the republican candidates pressure fresh off the iowa caucuses. >> jan crawford is here with what is happening out on the

campaign trail. >> a litter warmer to be in new hampshire and not the same as iowa. the candidates arrived here yesterday after that big caucus. and romney, mitt romney, of course, the front-runner. in all of his events yesterday he was talking about his, quote/unquote, landslide victory and making fun of it and then laid the cards on the table to appeal to his voters in new hampshire. from his narrow win in iowa, mitt romney grew big and supportive crowds and the first in the nation primary state. >> i love this country. >> reporter: he picked up a big endorsement from the 2008 republican nominee. >> i'm proud to be here with senator john mccain, one of america's heroes and a great friend. >> reporter: the two went head-to-head for the republican nomination and romney campaigned for mccain after he bowed out of the race four years ago. now it's mccain campaigning for romney and already ahead to the general election saying promise knee is the best candidate to

beat president obama. >> i am really here for one reason and one reason only and that is to make sure that we make mitt romney the next president of the united states of america. >> reporter: expectations are high in what has become romney's adopted home state. a new suffolk university poll shows him with a commanding lead in new hampshire at almost 30 points above his rivals. at the same time, newt gingrich and jon huntsman have faltered. rick santorum, who pulls in single digits here, is looking to give romney a run in the granite state after his near victory in iowa. as for the losers in iowa, texas governor rick perry will carry his fight forward in new hampshire and south carolina, despite placing fifth. >> we're going to go into, you know, places where they have actual primaries and they are going to be real republicans voting. >> thank you. it's been a wonderful ride. >> reporter: michele bachmann, a former front-runner in iowa, who finished last, said she was

bowing out. >> the people of iowa spoke with a very clear voice and so i have decided to stand aside. >> reporter: now romney has such a strong lead here. the polls show a lot of the candidates are going on to new hampshire. romney himself will be going on to new hampshire today but back here this weekend because we have a big debate and everyone is saying that debate is going to be nasty. >> a lot of news coming up. jan crawford, thanks for being here. senator john mccain joins us from salem, new hampshire. >> good morning, senator. thanks for being with us. >> good morning. >> senator, i can remember you telling me several times not that long ago that you probably weren't going to endorse anyone, at least not in the primaries, but here you are in new hampshire endorsing mitt romney. what changed for you? >> well, i think that it's very much time to select our nominee and to move forward into the general election mode.

this is going to be a very tough fight. i feel very strongly that mitt romney is the candidate that can defeat president obama and i also think he has conducted an excellent campaign and i agree with him on almost every issue, and so i'm proud to endorse him and support him and get this thing done as quickly as possible and get into the main event. >> was this a difficult decision for you at all? i mean, you served with rick santorum in the senate for many years, you called jon huntsman a personal friend. did this weigh on you at all? >> oh, it does. it always weighs on you because these are all good people that are running in this race and it's very tough on them, their families and their lives, and i respect every one of them. i just feel that the important goal is to have a republican in the white house and mitt romney

is the one that i think would do the best job. i'm very concerned, very deeply concerned from a national security standpoint, which hasn't been the biggest issue in this campaign, about the future of this country, if we had four more years of leading from behind. >> senator, when i first heard the news that you were endorsing governor romney, my first i remember four years ago one of the great quotes of the campaign, never get into a wrestling match with a pig. you both get dirty and the pig likes it. that was you talking about governor romney four years ago. so how does it work with you guys? did you not mean it four years ago or do you not mean it now? >> well, look. primaries are tough. these are tough campaigns and it a bean bag. the fact is as soon as the primary was over, mitt romney worked hard for my campaign. we became personal friends. we have worked together on a

variety of issues, and so, look. primaries are tough and i think that he had an honorable 2008 campaign as i did and so it was easy to come together after that was over. >> let me ask you to explain something about your friend, governor romney, because the other thing you said that struck me. governor romney has hand two positions on every issue, at least to his record as governor was far left. has your opinion on that changed? >> of course. and the fact is that he has done a lot since then, campaigning, outlining his positions on the issues. look. all of us, from time to time, over the years, change our positions as certain conditions and circumstances change. but i don't think there's any one in america that has changed positions more times than the president of the united states on virtually every issue. i think that governor romney has

waged a very clear-cut, very concise, and very, i think, important campaign mapping the future of his presidency and i agree with his positions on the issues. both on domestic and foreign policy issues. >> senator, newt gingrich has gotten a lot of flak for calling mitt romney a liar even when the two of you were mixing it up four years ago. neither of you ever crossed that line. gingrich was hit by $3 million worth of unregulated ads in iowa from mitt romney's friends. now, you campaigned all your life to reform the campaign finance system. don't you think there is something wrong with that? >> well, first of all, i don't think it's appropriate to call your opponent a liar. that's just something that we don't do in politics unless you certainly have some overwhelming proof. but, look. what is happening now is what i predicted when citizens versus united, united states supreme court, in what i think is one of

the worst decisions in history, struck down the restrictions in the so-called mccain-feingold law and a lot of people don't agree with that, but i predicted when the united states supreme court, with their absolute ignorance of what happens in politics struck down that law, that there would be a flood of money into campaigns, not transparent, unaccounted for, and this is exactly what is happening. and those are the rules and everybody is playing by those rules and i predict to you that in the future, there will be scandals, because there is too much money washing around political campaigns now that nobody knows where it came from and nobody knows where it's going. >> you may very well be right. senator john mccain, thanks so much for joining us morning. >> thank you. rick santorum is surging through new hampshire today. his surprise finish in iowa is getting him a lot of attention, a lot of money and questions about his political past. >> correspondent bill whitaker has been following santorum's

campaign and joins us now. >> good morning. >> reporter: one day after his surprise finish in iowa, rick santorum raised $1 million, half of all the money he has raised so far. the upside of being a top-tier candidate. >> game on! >> reporter: rick santorum swept into new hampshire basking in the post-iowa glow. on earlier visits, he struggled to fill a living room. last night, he asked a packed haul in brentwood to give him support. >> so that's what i ask you to do. what i asked iowans to do. lead and be bold. >> reporter: less than a week from the primaries, still a single digit in the polls here, despite his strong showing in iowa, the former pennsylvania senator sees a chance to repeat his iowa surprise. >> there are limitations as a result of it being a short campaign but we believe we can move up and show momentum here too. >> reporter: in iowa, his social conservatism had strong appeal to 56% of caucus goers and the

last new hampshire primary only 21% of gop voters were born again christians. to win here he must broaden his appeal and he emphasizes cutting taxes, a means test for skoshl. >> iran will not get a nuclear weapon under rick santorum's administration, period. >> reporter: he is not afraid to stand up and say this is who i am. if you don't like me, that's okay. if you like me, vote for me. i think i can trust him. >> reporter: even though santorum has raised only one-tenth of front-runner mitt romney's war chest, campaign co-chair william cahill says iowa a game-changer. >> he's gone up. a lot of other candidates are going the other direction. and there is a big dynamic at work here. we will see where he goes this week. >> reporter: now, already he's being hit by tough questions about past senate votes and

earmarks and that is clearly the downside of moving to the top tier. >> bill whitaker, thanks for being with us this morning. joining us now to take a look at what this means is roger simon, chief political columnist with politico and john dickerson, our cbs news political director. i think the first question is can santorum translate his strong finish in iowa into more votes here? because he still is only about six points in the polls here in new hampshire? >> yeah. the answer is he probably can't. he did well in iowa by spending the most amount of time of any candidate in iowa and he was beat by eight votes by the candidate who spent the least time in iowa, mitt romney. mitt romney now goes into his strongest state. he lives here, after all. he was a neighboring governor. and it's going to be extremely tough to beat him. >> john? >> well, that's exactly right. and so the question for santorum is he is dealing with a lot of

questions. he's got to raise the money and deal with the money coming in and deal with the scrutiny and make these tactical decisions. does he play here where we are all and it's morn to get in front of the cameras and get his message out or move to north. south carolina is better territory for santorum and all of the other people who want to beat mitt romney. >> i know nobody likes to see a race, especially in this room, that would be over at new hampshire. you got to help me out here, because i'm seeing mitt romney come in here with a head of steam. if he wins iowa and new hampshire, even if he gets his nose blooded in south carolina, give me an explanation it's not over soon. >> he probably will do poorly in south carolina because of the evangelical vote. if he needed good luck, suddenly, rick perry is going to stay in the race and he is going

to divide that evangelical vote with rick santorum and though, it seems unlikely that mitt romney could win there, he co d could, and then go on to florida where you have to have deep, deep pockets, which he has, where he's leading and it's going to be tough to derail this guy. >> you look so pained! >> we want a brokered convention in tampa and want it to go to the end but that's unlikely. >> newt gingrich is also in the mix in south carolina. only thing that might change this a little bit is that newt gingrich is now kind of a wounded and angry elephant going after romney here and he is going after him pretty call calling him a massachusetts liberal and going down the line on his issue positions and attacking him quite hard and we will see what that does, but it's unlikely to derail him but likely to make it unpleasant between now and when it all gets settled. >> let's talk about our favorite new frenemies.

john mccain and mitt romney. you were there yesterday when john mccain endorsed mitt romney. it will take a little practice to get comfortable with this buddy/buddy thing. >> in 2004 -- i mean, they hugged yesterday. four years ago, john mccain wanted to hug him but only to take the breath out of his body. they were not friends and fans. what is interesting about this is mitt romney's problem is the one mccain had is that republicans no -- movement republicans are not overly enthusiastic about him so mccain is a hero here but romney didn't need it here, he was already up 30 points. >> mccain is frosting on the cupcake here. what romney needs is support and endorsements farther to the right than john mccain. even though mccain has grown more conservative the last four years, by the conservative element of the republican party, he is still fairly moderate. >> right. they are both getting slapped with that moderate label. >> that's right. >> roger simon of politico and john dickerson of cbs, thank you

for being here with us this morning. >> thank you. still ahead, some of this morning's headlines, including cuts for our armed forces. tens of billions of dollars in budget cuts next year. >> the dramatic shrinking of the army also. this is "the early show" on cbs. and what that feels like. copd includes chronic bronchitis and emphysema. spiriva helps control my copd symptoms... ...by keeping my airways open... ...a full 24 hours. plus, it reduces copd flare-ups. spiriva is the only once-daily inhaled copd maintenance treatment that does both. and it's steroid-free. spiriva does not replace fast-acting inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva. discuss all medicines you take, even eye drops. stop taking spiriva and call your doctor right away if your breathing suddenly worsens,... ...your throat or tongue swells, you get hives, vision changes or eye pain,... ...or problems passing urine.

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good morning good morning. welcome back to "the early show." i'm jim actled rod. >> i'm nancy cordes. we are in new hampshire this morning. first, we go to new york and debbye turner bell who is at the news desk with a check of today's headlines. >> good morning to you. one utah police officer was killed and five others were wounded during a drug raid shoot-out. they were serving a search warrant in ogden last night. police say one suspect also wounded was taken into custody.

this morning, president obama unveiled a revamped military strategy forced by sharp budget cuts. the $662 billion budget for next year, is $43 billion less than this year. it includes cutbacks in foreign deployment and big weapons programs with a greater focus on cyberwar and terrorism. defense secretary panetta believes the navy should keep all 11 carriers but shrink the soldiers. in iraq this morning, another round of deadly bombings, apparently, sectarian attacks. at least four bombs were set off in shiite neighborhoods in baghdad and another bomb exploded in iraq. at least 30 people were killed and dozens more were wounded. in italy this morning, mt. etna is erupting again and producing plenty law va and smoke and steam up high

coming up, tough questions and a firm handshake. why all politics in new hampshire is personal. >> we will be right back. this is "the early show" on cbs. okay, team! after age 40, we can start losing muscle -- 8% every 10 years. wow. wow. but you can help fight muscle loss with exercise and ensure muscle health. i've got revigor. what's revigor?

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♪ welcome back to "the early show." on the campaign trail here in manchest manchester, new hampshire. good morning, i'm jim actle rod. >> i'm nancy cordes. good to have the nominating progress finally under way after what seems like a year of campaigning, right? coming up, we will take a look at one family's bitter battle to get an insurance company to pay their dad's longer medically medical bills. it's said that politics is personal and never more apparent than right now, right here in new hampshire. >> correspondent karen brown met with some straight talking voters here in new hampshire. >> they will definitely tell you what they think here in new hampshire. i found driving around this

state for days that, in fact, no matter where you go, what you find is that whether you're talking to the cleaning lady at your hotel or the man who owns it, voters here are extremely informed, they are passionate about being part of the process and determined to size up the candidates for themselves and like almost nowhere else in america, they get the chance to do that. >> wow. >> i want you to have it and when you read it, it will inspire you. >> reporter: in new hampshire, politics is personal. >> thank you so much! >> i just want to share with you the socks they gave me. >> they don't just kick the tires. they don't look at the stickers but kick the tires. >> can you brui. >> i do have more gray hair. >> my record is what it is. i i'm not going to pander:thank you for speaking to us on a personal basis like this. >> reporter: mr. russ is on a mission to meet every candidate that comes to new hampshire.

>> i felt their hands and seen the color of their eyes. if your cheap banker comes to you with a bunch of his tough guys and says we have a message from the banks and we want to bail out. >> reporter: tonight's target? jon huntsman. >> we have got to ride size these banks before we get to that point because the people in this country are not going to stomach another bailout. >> reporter: you said you wanted to feel the blood in their hands and to look them in the eyes? >> i did. i shook his hand and felt it a while. >> reporter: and? >> it shows me the man is a good man. >> i call them visceral voters. they don't let you escape their grasp. >> reporter: they have come here to size you up personally. >> absolutely. and they strip you bare. they want to know everything. >> reporter: andy smith. >> all adults in the state have been in the room at an event

where one of the candidates was speaking. >> reporter: professor smith found that in 2008, nearly 20% of all voters had actually shaken the hand of a candidate. governor john lynch. >> i'm convinced it makes the candidates better presidents if they are fortunate enough to get elected. >> reporter: why? >> because they have had to engage with real people. >> they ask tough questions and when it's all over, some come to your side and some say i don't like you that much. it's very funny. >> reporter: but if they like you, they can be very giving. people have been giving you gifts. funniest thing they have given you? chocolate milk some? >> i was going to say the chocolate milk which is what i got tonight. i sometimes get calendars and sometimes maple gifts. >> new hampshire, whether you like it or not, is the window through much the country gets to meet and greet and better understand the candidates. you get to ask them questions. >> reporter: is that a little bit empowering that you have the opportunity to do that? >> empowering and nerve wracking

at the same time. a little intimidating. >> reporter: melissa hilton is at her first candidate event. >> would the far right agenda what is your plan to give dignity and support to those with disabilities in the country? >> i want to make sure that, most of all, we have a nation that speaks to opportunity for all of our citizens. >> reporter: even without a solid answer, hilton is off and running as a true new hampshire voter. >> i want to shake your hand. >> thanks for asking. i appreciate that. >> it was actually less intimidating than i thought it would be. i was actually really nervous and he was just like one of my neighbors. >> they want to know what makes you tick. they want to look you in the eye and say this is the first handshake and we have 14 more to go and if you can stand up to the scrutiny you might -- >> reporter: he is not joking. mitt romney explained it this way on the bus. the people in new hampshire have the largest per capita impact on

who the nominee will be. it's probably a pretty good thing they get to meet them in person. listen to this. they expect a quarter of a million people to vote next week. that is 60% turnout rate and compare it to 6% in iowa and why this race is so different. >> we live in a culture where, for most americans, the way they experience politicians is through television. but new hampshire will always ensure you can, as we just saw, reach out literally and touch them. >> it's important to them. what i found super refreshing here is that when these folks feel like their voice actually matters because it does, they take that responsibility very seriously and they are very informed and they want to meet these folks, because they get their vote, right? >> exactly. wow. that is really fascinating. karen brown, thank you for bringing that story to us and showing us the different side of the candidates which is nice too. you're watching "the early show" on cbs. his stimulant medicine was helping, but some symptoms were still in his way.

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nation. first, here is debbye turner bell with a check of today's headlines. >> good morning. the man suspected of setting dozens of fires in los angeles remains jailed this morning charged with 37 counts of arson. hear burkhart, a german national did not enter a plea during a court appearance yesterday. he is held on $3 million bail. he is also under investigation for arson in germany. funeral services held today for the five family members killed by a christmas day fire in connecticut. madonna badger attended a wake for her three young daughters yesterday. the stamford house fire killed her children and her parents. officials say it was caused by ashes from a fireplace that were left too close to the house. the girls were concerned about santa claus and the ashes being in the fireplace.

in australia, a fishing trip turned into a harrowing ordeal for two fathers and their son. the four spent 45 minutes in the water wearing life jackets and clinging to an ice chest. after their pleasure boat caught fire and sank on thursday. the rescue helicopter finally found them and threw them a life raft. a police boat followed and brought them back to land. they were wet but coming up next, one family's emotional struggle to get a

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>> five. >> reporter: 93-year-old timber harwood has always taken care of his family and planned ahead. for years he faithfully paid premiums for long-term care insurance with the hopes that it would help cover the cost of everything from home care to nursing homes, if he ever needed it. this is his daughter. >> he was pro active at getting a health care plan that would help him down the road. >> reporter: they needed help in 2010 when timer had a serious fall. health care helps him with meals and dosing and medicine. when it came time for the insurance bankers life to pay, all of the family got was the runaround. they were repeatedly faxed hundreds of pages of required documentation. >> the company would say they didn't get the faxes so we sent 300 to 400 pages and overnight and then they lost that. they couldn't find that anywhere, even though someone in

the office signed for it. >> reporter: their faxes lost, their mail lost, their paper work missing, that went on day in and day out for almost a year. all while timber spent his savings. finally, the family turned to the family's niece. >> you're trying to do the best for your loved one and then you're having to fight for something you believe you're entitled to. >> reporter: p praeger is speaking as more than timber's relative. it so happens she is kansas' lead insurance regulator and she knows bankers life all too well. hundreds of policyholders have claimed the company beat them down with bureaucracy and too thick to fight back. in 2008, kansas and 39 other states have found a pattern of consumer harm of bankers life that included unjustified delays and bad record-keeping. >> they were able to demonstrate a pattern that appeared to be at least designed to frustrate

people. >> bankers live and a sister company eventually admitted no wrongdoing but paid $32 million for fines and restitution and system improvements but complaints continued to grow. in 2010, bankers life had shrunk to less than 6% of the market share but drew one-third of the complaints. bankers life would not talk to us citing privacy concerns. in statement they said they paid $1.3. to 1.3 million customers and are committed to the highest standards for ethics, fairness and accountability. once praeger got involved, timber's claim from the past year finally got paid. but the struggle wasn't over. bankers life recently questioned timber over the phone and concluded he is too healthy to continue giving home health care, finding his family disputes but say they are too worn down to fight. >> how sad it was for him to feel like he had failed almost

and that was the worst part. >> timber's family says instead of providing peace of mind, the long-term care that they counted on has only left them worried about his future. nancy? >> and i imagine that this is not the only insurance company that is having this kind of problem. >> reporter: certainly many people do get paid and happy with their insurance but we spoke with experts for the story who say a lot of others, long-term insurance isn't paying as advertised and even some insurance companies now admit they didn't realize how expensive it would be to carry this type of coverage and probably underestimated what they needed in premiums to stay afloat so now customers may be facing hefty premiums at a time when they can't afford it and that someone of the issues. >> one of the shocks people really don't want to have sharyl attkisson in washington, thanks so much. you're watching "the early show" on cbs. [ female announcer ] kids don't worry about getting dirty.

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♪ welcome back to "the early show" from chilly manchester, new hampshire. it's a bright, but cold day here in the granite state. i'm nancy cordes. >> i'm jim axelrod. we are coming to you from new hampshire because we want to take a closer look at the granite state and talking to people here about their top concerns like the economy, which at some places worse than others. all of this is ahead of next tuesday's first in the nation primary in new hampshire. first, a partisan battle between president obama and senate republicans may be headed to court. the issue is mr. obama's appointment to the head of the protection bureau.

>> we head to washington to get more on this from senior white house correspondent bill plante. good morning, bill. >> good morning, jim. it was an unpress denied and deliberately provocative act. the president thumbed his nose at the senate republicans and made a recess appointment of richard cordray to head the knew consumer protection agency, even though the senate is technically not in session. it's a confrontational move and one the white house is happy to take in an election year. >> i refuse to take no for an answer. >> reporter: the president made the announcement in ohio with cordray, once the state's attorney general, at his side. republicans have refused to confirm cordray because they say the new agency has unprecedented power over the consumer finance industry and no accountability. the president says republicans just want to weaken the laws protections. >> i'm not going to stand by, while a minority in the senate, puts party ideology ahead of the people that we were elected to

serve. not with so much at stake and not at this make or break moment for middle class americans. we're not going to let that happen. >> reporter: in an online post, cordray says the agency will be able to supervise nonk bank mortgage learned and payday lenders that had no oversight and said it led to a race to the bottom in the financial crisis and greatly harmed consumers. even though most lawmakers are far from washington, the senate is technically in session precisely to block recess appointments like cordray's. the practice was started in 2005 by a democrat, majority leader harry reid. mitch mcconnell said the president arrogantly endangers the congress' role in providing a check on the excesses of the executive branch. the president's press secretary says the white house counsel

advised the president that cordray's appointment is legal and will be challenged in court. but as far as the white house is concerned, so what? the legal battle will go on long after this election year is over and, in the meantime, the president will be able to claim to be the champion of the middle class. jim? >> bill plante at the white house, thanks. the results in iowa have a lot of democrats smiling. the theory is if the best mitt romney could do in iowa is tie rick santorum and then president obama's chances look much better in a general election. >> joining us is bill burton, senior strategist for priorities usa and former deputy press secretary in the obama white house. >> hi nancy and jim. >> i keep hearing democrats like you, bill, say mitt romney comes out of iowa because he had to move so far to the right. but i don't see that that is really true, except maybe when it comes to immigration. >> i think there is two big issues where had he to move to the right where he is really

going to be suffering in the general election. one is on immigration where his views and his positions make him basically untenable for many hispanic voters and doubling down on the ryan budget which would essentially end medicare is going to be tough with him with senior voters. >> we had you on the broadcast a month or so ago. >> that's right. >> talking about the challenges that president obama, the pacts that support president obama were having raising money. could you give us an update? how is the money raising going? >> sure. coming out of the first phase of our group which was educating progressive activists and donors and doing research through polling and on the candidates themselves. and also, of course, raising money. we have been received very well. the fund-raising is going very strongly and we feel like we're on pace to hit our 100 million dollar goal through this election to make sure a counterveiling force to karl rove and the mitt romney super

pact which are already raising millions of dollars. >> did the fact that rick santorum do so well in iowa change your strategy or are you focused completely on mitt romney and do you think he has any competition here in new hampshire? >> i think rick santorum helped to underscore the lot there is not a lot of enthusiasm for mitt romney. the only voting groups that mitt romney won is voters who make over a hundred thousand dollars a year. so i still think that mitt romney is likely to be the nominee but it appears not the enthusiasm you heard before the caucuses that there might be for republicans to unseed president obama. >> but, at the same time, he won in iowa. he is poised to win in new hampshire. no nonincumbent republican has ever done that. i think it's tough to make the argument there is not a lot of enthusiasm for him, is it? >> if you consider the fact that mitt romney got a few fewer votes in 2008 after spending millions of dollars in running for president for some five, six years, the man is basically been running in place because republicans and conservatives don't trust him to stand up for

them on their issues. even though he is as right wing conservative as some of the rest of the candidates in the field, conservatives just do not trust him because he has been all over the map in his career as he has run for dirch offices and different places. >> bill, we got a short time left. are you prepared or are democrats prepared to run a campaign primarily on the economy? what will president obama's defense of his records and the economy be? >> the fact that the economy is moving in the right direction, that the president has moved this country from a place where it was shedding 700,000 jobs a month when he took office to now a consistent job growth the last year, is a good record to run on. more importantly than that is what is the vision that the two candidates are going to have for this country when it comes to the economy? the president has a vision of growth. republicans, especially mitt romney, has a vision that helps the folks at the top at the expense of the middle class and that is a choice and a contrast the president will be happy to take on in november. >> bill burton, we have to leave it there. thank you for joining us.

>> thanks, jim and nancy. let's head to debbye turner bell in new york for a check of the morning's headlines. president obama is unveiling a new streamline defense strategy at the pentagon today. a budget deal with congress calls for 489 billion dollars in defense cuts over the next ten years. it includes cutbacks in foreign deployment and weapons program. defense secretary leon panetta wants to slin the army below current targets while saving all 11 navy aircraft carriers. boeing announce it will shut down its factory in wichita, kansas later this year. the company says the move is forced by the declining defense contract market. more than 2,000 workers will lose their jobs. >> it's really, really sad. >> how long have you worked here? >> 32 years. >> reporter: boeing recently won a $35 billion contract to build 179 air force refueling tankers. boeing had said the planes would be built in kansas, but now say

the work will shift to washington state. more than 50 people were killed by a string of bombings in iraq this morning. at least four bombs exploded in shiite neighborhoods in baghdad and a bombing in southern iraq killed at least 30 shiite pilgrims. in the philippines, at least 25 bodies have been recovered after a landslide buried a remote mining settlement. more than 100 people may be trapped in the rubble. some miners had stayed at the site, despite government warnings that a landslide was likely. they are fighting huge wildfires in new zealand and australia. nev several towns evacuated from the flames as 65 feet high approached in new knee zaned. in australia, a texas longhonor with really, really long horns.

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the economy and jobs are the topics dominate the day is before next tuesday's primary in new hampshire. >> even though new hampshire has one of the lowest unemployment rates in the country not every part in the state has weathered the downturn. the very busy karen brown joins us again. >> good morning to you. new hampshire has one of the healthiest economies in the nation. the candidates often tout is its low 5.2 unemployment rate and business friendly environment but they are mainly talking about the south where the high tech industry is centered and the economy more diversified. but in the north, they are struggling. we visited one small town where its name tells the entire story. this is one of the most photographed places in new hampshire. >> that's what they say. >> reporter: a retired teacher nancy spaulding, lives in

picture perfect northern new hampshire. and you had a pretty short commute? >> yes. across the bridge, over the bridge and to the school. >> reporter: her town is named for general stark, the man who coined the state motto, live flee or di free or die but it's now fighting for its life. >> that school means a lot to you? >> definitely. it was just a two-room schoolhouse when we started. >> reporter: 14.3%, unemployment has nearly tripled the state average and the economic picture in stark very much like its name. >> well, the school had 67 students when i started there. now they are down to about 26 kids. >> reporter: when did things start going bad? what did you see happen? >> well, one mill closed and another mill closed and with each closing, there is fewer people and fewer jobs, few err incentives to stay around. >> i would like to still be working right now and earn that good wage, you know, and to help

my kids out. >> reporter: ron lund has made the decision to stay and keeps busy as a volunteer firefighter. the nearby mill that provided for his family and hundreds of others has been dormant for four years. what is it like to put 38 years of your heart and soul into something and then have it just be gone in a day? >> it's like pulling the rug out from under your feet. you think what are you going to do the rest of your life? >> reporter: i bet this place was jumping when it was working, yeah? >> for sure. yeah. for sure. >> reporter: a third generation employee roger krawiec earns tlorg three-fourths to keep up the gutted paper plant so somebody will buy it. >> this part of the world in northern new hampshire is a real special place. people want to do a good day's work. >> reporter: the top candidates blanket the south but don't make it as often to the north. the last visit to the mill was

ted kennedy in 1980. >> do you feel like you guys have forgotten up here? >> yes. the amount of votes that are going to matter in this part of the country, why should they bother? >> reporter: is it heartbreaking to look around and see that? >> in ways, yes, and what has been driving me the last few years is take care of the building in such a fashion that it would -- someone could breathe new life into it. >> reporter: what do you picket this as? >> well, i don't know. you know? it could be an electric car manufacturing facility, it could be just about anything. >> reporter: i have three rooms. >> reporter: you're sort of the only business that is doing business here in stark, yeah? >> yeah, pretty much. >> reporter: nancy spaulding runs the stark village bed and breakfast. >> i have a very good summer at my end. >> reporter: because the state is trying to transform the once industrial north to take advantage of its beauty. >> the state is really very active in bringing tourism to

the north country. that's important. it provides a lot of jobs. >> reporter: that points to the possibility that a new industry could resurrect this community and let its school live free and never die. you might lose the school? >> there's a possibility if educating kids is what it's meant to be doing and there are still kids in stark. >> reporter: volunteer firefighter ron luned sad says decided to stay in the depressed area because he has grandchildren there and owns a house and can't sell it without taking a huge hit but there are jobs coming. one of the old paper mills has been purchased and is being turned into a biomass plant that will allow jobs. >> that is great. thank you, karen, for the beautiful story. up next, more on the most political endorsement so far in campaign 2012. senator john mccain makes nice with mitt romney in the town where mccain turned his own campaign around four years ago. >> this is "the early show" on cbs.

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as we reported earlier this morning arizona senator john mccain has endorsed mitt romney for president. >> a few years ago, huntsman and romney were bitter rivals, but now mccain and romney have buried the hatchet and headed to the town where mccain turned his own bid for the nomination around four years ago. >> reporter: every presidential candidate knows that the road to new hampshire primary victory runs through picturesque pet peterborough. it was the model for thornton wilder's classic play, "our town. >> one of the great and wonderful memories i have of my political life. >> reporter: four years ago, when john mccain's campaign was hanging by a thread, he visited peterborough again and again. staffers called the town his good luck charm. mccain went on to win the new hampshire primary and the nomination, vesting his top

competitor mitt romney. >> senator, senator, is there a way to have this about issues and not about personal attacks? >> i hope so. because i think we have differences in issues. >> that was then. this is now. >> that the united states of america needs mitt romney as the next president of the united states of america. >> reporter: mccain came back to peterborough with nothing but praise for romney, calling him a great campaigner. >> make sure that we send him to south carolina with such momentum that it cannot be stopped. >> if there is one thing that unites republicans, it's two words -- beat obama. >> reporter: pat griffin is a republican strategist and professor here in new hampshire. how significant is it for mitt romney to get an endorsement from john mccain? >> i think this has been planned for a while. the value of the mccain brand, particularly in new hampshire, a place he won in 2000, and beat george bush, a place he beat mitt romney, it's a little coincidental, isn't it, that this would happen on this day

after iowa? >> reporter: the move is meant to sway undecided voters like kevin krawiec, a respiratory therapist in peterborough. have you made your mind up who you're voting for? >> no, not 100%. i really like rick santorum. he was he was so far down, i was disheartened but the showing he did yesterday made me move him up so it is between mitt and rick santorum right now. >> reporter: forest cook is already in romney's camp but came to hear what mccain would say about his former adversary. >> watched the two mix it up four years ago but now bury the hatchet. >> they say they have. >> reporter: they are frenemies? >> exactly. that's the way it should be. >> talking to voters last night, they said that john mccain went to peterborough so many times four years ago that he actually knew voters names when he would come back.

>> but he is not burying the hatchet like they should be. coming up, how the new hampshire

never in my lifetime did i think i could walk 60 miles in 3 days. if my mom can fight and beat breast cancer, i can walk 60 miles. (woman) the fund-raising was the easiest part. people were very giving. complete strangers wanting to help. i knew someday i was gonna do this walk. if i can do this, you definitely can do this. we can do this. we can all do this together. (man) register today for the... and receive $25 off your registration fee. because everyone deserves a lifetime. because everyone deserves a lifetime. alright everybody, now when i was in the military, i learned that if you stand together, you can stand up to anything! no matter where i was deployed, i always knew that somebody had my back! you boys are your own band of brothers! you have each other! just like i had navy federal credit union... 24/7... live customer support! let's go! let's go!

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only easier to carry -- get three for $1.59. ♪ welcome back to "the early show" on this thursday morning. you're looking at downtown manchester, new hampshire. i'm nancy cordes. jim axelrod. >> great to be with you. >> we are taking a look at this half-hour at the state of new hampshire which, for so long, has been a do or die state for presidential candidates. coming up, we take a look at how the state gave momentum to ronald reagan, dwight eisenhower

and would could happen if mitt romney somehow falters here. >> which is not looking too likely this morning. >> you may recognize these ladies from their political parodies. the republican candidates, are jon huntsman daughters and we will to them did their bad's tough campaign to win here in new hampshire. >> bringing a little levity to what can sometimes be a overly serious process. first, here is debbye turner bell with today's headlines. one of the six police officers shot during a drug raid overnight has died. gunfire erupted as the officers searched a home in ogden. five officers remain hospitalized. a suspect was arrested and is under guard at a hospital with nonlife-threatening injuries. congresswoman gabrielle giffords will attend a

candlelight vigil in tucson. it marks one year since the shooting rampage that killed six people and included 19, including gifford. casein anthony has been in hiding since her acquittal in july and now she has resurfaced on youtube. the video was apparently made last october. she talks about being lonely, about her new computer, she never mentions caylee but she says her life is getting better since she was found not guilty. >> just a little surreal how much things have changed since july and how many things haven't changed. the good thing is but things are starting to look up and things are starting to change in a good way. >> 2-year-old caylee anthony was first reported missing in july of 2008. she was found dead five months later. british police investigating a murder on the grounds of a royal estate have more questions

than answers this morning. elizabeth palmer reports from london. >> reporter: the case is not only a who done it, at this stage, it's a who is it? all police know about the victim is that she was a woman, no older than 23, and that she was most likely murdered, although they don't know how she died. the body had been in the woods for somewhere between one and four months before it was discovered. >> a member of the public was walking their dog in the area on new year's day around about 4:00 p.m. when they found a body and called the police. the police tended and we have had control of the scene since that time. there are forensic experts currently working on the scene. >> reporter: it is a spraueding royal estate on the northeast coast of england and used, in part, as a holiday get-away by

members of the royal family but more than 15,000 acres wide open to the public and popular with hikers. the body was discovered in a forest three miles from the 19th century house and mansion and garden reserved for the royal family. the queen and prince phillip still at the state and aware of the grisly discovery. police are looking into the possibility that the victim was a 17-year-old student who disappeared from the area four months ago. but they weren't able to get a dna profile yesterday so are doing more work now to identify the body. elizabeth palmer, cbs news, london. widely separated parts of the country are seeing some unusual winter weather. there's been record heat in parts of the west. temperatures reached 60o in the dakota yesterday but in florida, talk strawberry crops barely

survived a freeze. scientists say that cold stress that sent the manatee soaring and they are taking skin samples to keep better track of the health of the animals. in hawaii, surf is up and, man, it's way up. big crowds turned out yesterday to watch 30-foot high breakers and surfers trying to ride on them. lifeguards made several rescue

there's a lot of history here in new hampshire when it comes to nominating a president. the state has been holding presidential primaries for almost a century going back to 1916. >> and for many election cycles, the new hampshire primary has been the first in the nation making it a must win state for so many candidates. >> reporter: some of the most meshlable moments in campaign history have unfolded along the trail here in new hampshire. ronald reagan may have won a debate, a primary, even a nomination, after his famous line in 1980. >> i am paying for this microphone! >> reporter: from dwight eisenhower to jimmy carter getting geting theirs first wins here. >> out of one delegate, i got all of them? >> reporter: to john mccain and bill clinton. >> tonight has made bill clinton the comeback kid. >> reporter: saving thain candidacies with strong showings here. new hampshire has a long, rich

history of making and breaking presidential campaigns. >> there are two tails of tiers in new hampshire, one positive and one negative. >> reporter: university of new hampshire scientist daunte scala had no trouble to name the two most emotional moments in the history of the new hampshire primary. it's 1972 and senator ed musky, a democrat from maine, the seeming front-runner washings on a roll here. musky felt the state's largest newspaper "the union leader" and its conservative publisher had unfairly targeted his wife. >> one day, musky was so enraged by all of this he rented a flat-bed truck and they took it out in front of the union leader so musky could give this speech attacking the union leader. at the time was there a snowstorm going on and people watching thought either there's snow on his face or musky is crying. >> reporter: long before male

tears were seen as acceptable for a politician, musky took a hit. his campaign never recovered. even though it was unclear if, indeed, he had been crying at all. >> there is this reality and then there is the perception of what happened and sometimes that is what we remember. >> reporter: ah, yes, the perception. mary ann knows all about that. >> i want to ask you something personal. >> reporter: four years ago, she asked hillary clinton a question in this coffee shop in ft. smith. >> i was really intrigued by her hair-do, always so perfect. i want to get away from the political questions that were paddy answers and i wanted to see her as a girlfriend, as a woman-to-woman and i wanted to see what makes the woman, you know, want to do this. my question is very personal. how do you do it? how do you -- how do you keep upbeat and so wonderful? >> well, luckily, i do have a special days, i do have help. >> reporter: clinton appeared to choke up. >> you know, i have so many

opportunities from this country, i just don't want to see us fall backwards. >> maybe it was a musky moment for her? she teared up. in all fairness, she teared up and lost her voice a little bit. >> reporter: there is no question in your mind she definitely teared up? >> oh, definitely. >> clinton would go on to win here. new hampshire had its latest history into the history books, but certainly not its last. the people of new hampshire, like mary ann perno, will see to that. >> i think my question caught her offguard and she said, wow, what is this woman asking me a personal question? what is that all about? and i think she was touched. obviously, she was touched. >> reporter: politicians prepare for what they perceive to be every possible question. >> right, right, right. >> reporter: here was a very simple one. >> it was a girl question. it was a woman-to-woman question. >> reporter: and it cut right through. >> yeah. >> reporter: people still recognize her and ask her about

"the question" and she told me, absolutely, you have to be famous for something. maybe a touch of an overstatement but here in history, she is a part of history. >> a lot of people think her question and hillary's answer led her to come back and win that in new hampshire after a humiliating loss in iowa. joining us is andrew smith, political science professor and director of the university of new hampshire survey center. mitt romney is leading by a mile. he has 41% of the vote according to the recent poll. ron hall paul has gotten a bump from iowa, up four points and now at 18. santorum got a tiny bump. he's at 8% and gingrich 7% and huntsman 7% and undecideds still 17% of those polled. even if all of those go to ron paul does romney still have it in the bag here? >> i wouldn't say it he has the bag but he has a lot of things

going for him. first off the last two plus years he has the highest favor ability ratings of anybody here. the second thing he has the most money and arguably the best organization in the state and, third, his opponents really don't have the kind of resources that they can use to take him out in this next week. newt gingrich is talking about going negative. how is he going to do it without any money? romney is in a really good spot. >> what have we seen in new hampshire historically in this three, four, five-day period where there has got to be a lot of movement? what is possible? has is the range of possibilities? >> the biggest range i believe would be about a 10% to 20 percentage point movement. back in the 1980 campaign, ronald reagan was seen to have a huge lead that narrowed found fairly quickly. 10 to 20 points is about smacash as you can expect.

don't trust the polls you see at the end largely because voters haven't made up their mind. anywhere from 15% to 25% make up their mind on election day and 30% to 40% make up their mind the the last time three days. when you're polling two days before the election, you're asking people who they are going to vote for when they don't know. >> we have seen these wild shifts in this campaign, 30 points up, 30 points down. what are you seeing in the race right now? newt gingrich would was so nice in iowa says he going to be not so nice here in new hampshire. can he really make a dent in mitt romney's strength here? >> again, romney has high favor ability ratings which will do a lot for a candidate and protect shem from those sorts of hits. romney has money and buying ads and blanketing the air waves. gingrich doesn't really have the kind of money he can get out there and hit most of the voters. new hampshire has the opportunity to meet all of the candidates. 15% to 20% of republican voters will have met or been with one

of the candidates. but there's going to be 255,000 voters in this election. you can't need enough candidates and interact with them face-to-face. you have to do it through advertising. >> one of the bold-faced headlines we have been talking about this this morning is senator john mccain endorsing mitt romney. do you find as a pollster actually sway people's opinion win way or another? >> not much. they are the strength of the candidate in the sense they think they they are going to win. you want to take the trend like sherman adams working with dwight eisenhower of getting a nice gig in d.c. so endorsements aren't so much a way to sway voters. they are used at the end largely to drive media coverage. john mccain endorsing mitt romney is one of the things we are talking about this morning and really what the candidates want, to drive media coverage. >> andrew smith, thank you for

talking with us about this interesting race here in new hampshire. obviously, sets us up for south carolina where so many of these candidates are going to be trying to stop mitt romney's momentum here. >> absolutely. it's going to be easier for them there. south carolina has a much more evangelical electorate similar to iowa. new hampshire doesn't. >> as important as new hampshire is for all of the candidates, it is a matter of do or die for jon huntsman. >> but he has a not so secret weapon, his daughters. we are going to meet them when we ret

republican presidential candidate jon huntsman is betting big on new hampshire. he has been crisscrossing the state hoping to overtake mitt romney as rick santorum did in iowa. >> but he is not going it alone. his three daughters are out on the stump with him and they have become internet celebrities in their own right as the jon 2012

girls, mary anne, abby and liddy huntsman, good morning. i've heard you referred to as the three most famous sisters and not kardashians in the state. i want to give you a behind the scenes how we get little notes who is who. all i'm told is mary anne, shorter blond hair. and abby, the only brunette. and liddy, longer blond hair. i'm so sorry but i've been trying so hard. what has it been like? >> thank you for having us on. >> we are happy to be here and working hard and excite week and been here the last few months and i think you'll see a lot change the next few days. we have laid down the groundwork and people connecting to our dad's message and having a great time. >> his poll numbers didn't change much after iowa. i know he is betting big on new hampshire. what do you think can change in the next four or five days that will get him the votes he needs to stay in this race?

>> well, i think you see mr. smith was just talking about polls really don't matter. i mean, i think a lot of people going into this race are still undecided when they go into the voting booth but i think what we are really gaining traction, you see my dad's town hall the other night. there was so much enthusiasm. people were just loving him, everybody signed up and we are seeing more people. he has 150 events at new hampshire and we have gone to all of those and we have seen it grow larger and larger throughout, you know, the event. >> uver grown up sowhen you've public eye and not like politics, a particularly new realm for you, but i would imagine once you get into the presidential campaign level, that this is sort of a different experience, if not somewhat disorienting at times? >> it's definitely on a different level than when our father ran for governor but you just tune out with all of that and it's just been a great experience for us. >> is it hard -- >> it's a family affair which a

has made it a lot easier for us. you cling together and you know no matter what happens you're together as family. we know our dad, despite what anybody says, we know what our dad is and what he represents and i think that is all that matters at the end of the day. >> what is the best and worst things you have learned about this presidential nominating process? >> the best thing we learned is anything can happen. look what happened in iowa. it shows the american people speak and you can't control what happened and it's a movement and what people are aching for. >> let's talk about your video. i think you probably, for the huntsman campaign, are responsible for the sort of hitting a different demographic in the social media. tell us about the videos and what you've been doing. >> when we started the twitter, we wanted people to see the back stage of what we are seeing and i think people thought it was interesting to see a candidate's family what they see every day and so the video, i mean, it's such an entertaining process we figured -- >> we are looking at some right

now. a little bit of a charlie chaplain? >> people don't recognize us without the mush attaches. >> that's right. >> you tried to get the romney boys to play along and they kind of -- >> they are still playing hard to get but we are still waiting for them. >> we are still waiting for a response. >> that's not very gentlemanly. >> i know. let's say it's the wednesday after the new hampshire primary, your dad doesn't come in first or second place. you're all sitting there as a family. what is your advice to him at that point? >> we are coming in second or first. >> on the off chance that that actually happens. >> i think it's something you decide at the time. it's not something you really can think about right now. our focus is working the ground here and really trying to get people out to vote and that is our phonifocus. >> your dad was here yesterday and, obviously, talking about his optimistic view heading into the next couple of days. is it hard to have these long days, 18, 20-hour days? you're out talking from your

heart about your father and then to not see the numbers move, does that get a little bit dispiriting for you? >> of course, it's hard, you know? but like we said, he is working tirelessly every day and he just celebrated his 150th event and that is all you can do is just work your hardest and, you know, you can't really look at the poll numbers until the very end and that is what we are focusing on right now is not looking at the poll numbers, but just, you know, working our hardest until the fine day. >> we know he's never wavered and we are proud of as kids. i think we feel honored to be working on a campaign that we believe in so much. he is a man of integrity and honor and of honesty. that is rare in politics today. we are happy with our dad and that is what matters. >> people from the left and right consider your dad the most in line with them ideologically than any other candidate. does that make you wonder why

it's not reflected in the polls in new hampshire? >> the thing about him is he a person who can bring people together, whether it's republicans, democrats, or independents. i mean, he won, you know, governorship in the state of utah with 78% of the vote and won over more democrats than his democratic opponent. >> electability. he is the only candidate out there to beat president obama. so, you know, it's just getting through the primary which is what we are trying to get through right now. he is definitely the most electable. >> do you think he will stay in politics? have you found a future here? a calling? >> you're doing a wonderful job with it now. schedule from here next couple of days? >> we are heading down to south carolina. we are going to do some advancement work for our dad and then -- >> i'm speaking at a town hall so we are splitting up doing different things. >> you're on the theater net for everybody to see. >> there may be some other things up our sleeve.

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