Skip to main content

tv   CNN Newsroom  CNN  October 9, 2013 6:00am-8:01am PDT

6:00 am
for watching "new day." we now gift you carol costello with cnn newsroom. take it away. >> it's like a christmas present. thank you. have a great day. "newsroom" starts right now. happening now -- >> shuouldn't be embarrassed about this? shouldn't we be ashamed? appalling. frightening. >> families of troops killed in battle denied their benefits because of the government shutdown. >> the list goes on and on of people of innocent americans who have fallen victim to their reality that we can't sit down and talk like grownups and address this issue. >> plus, an illegal work stoppage. >> i want to follow the rules. that's all. >> the keys are in their hands. if they honor this contract, we will be driving tomorrow.
6:01 am
>> drivers of boston school buses off the jobs angry over a gps app that tracks driving, leaving families trapped in the middle. >> it's a great thing. >> late getting here because of the traffic. >> also, we're not bad parents. we didn't think nothing of it. i don't have an angel. i have a 9-year-old. >> the father of a 9-year-old who sneaked onboard a plane is speaking out calling his son a charmer but trouble. >> and kanye and kimmel g lchll to toe tonight. ♪ >> good morning, everyone. i'm carol costello. thank you so much for joining me. it is day nine of the partial government shutdown and in washington the posturing of politics may have met its match. it is the power of shame.
6:02 am
>> today shutdown outrage, military death benefits denied to families of fallen troops. shouldn't we as a body, republican and democrat, no matter who we are, shouldn't we be embarrassed about this? shupt shouldn't we be ashamed? >> from military death benefits going ignored to needy children finding preschools closed. charities step in and our dysfunctional government gets called out. are americans finally fed up with this? well this morning there may be just a glimmer of compromise poking through the blame. president obama says he may be ready to talk. but republicans say he's really just demanding unconditional surrender. cnn's brianna keilar is at the white house this morning. good morning. >> good morning, carol. let me first tell you that we now understand house democrats will be coming to the white house this afternoon for a
6:03 am
meeting. you have that going on. one white house official telling me not really to read too much into this. this is congressional outreach. they'll be having house republicans as well as house -- or senate republicans and senate democrats in the coming days as well. so this isn't necessarily to discuss a short term measure that we've been hearing the white house and house republicans may be open to. so at this point, this discussion isn't exactly a breakthrough. but it may be a positive development because you have both sides sort of talking about how they may be open to this. it come as politicians are really feeling a lot of pressure. day nine, the government shutdown is getting real. for families of troops killed in combat, they will not get automatic death benefits during the shutdown. $100,000 to help cover funeral costs and travel to dover air force base to witness the dignified transfer of their loved one's remains. in north carolina, food assistance for poor women and children cut off.
6:04 am
>> furlough congress! >> reporter: and 27,000 furloughed government workers have signed up for unemployment as they go without pay. just eight days until the united states could default, president obama phoned house speaker john boehner. both sides indicating the divide is as deep as ever. >> you have to stop repeating this pattern. >> reporter: later, president obama appeared in the white house briefing room, opening the door to negotiations if republicans agree to a short term solution to reopen the government and increase the debt ceiling. >> if there's a way to solve this, it has to include reopening the government and saying america is not going to default, it's going to pay our bills. >> reporter: how long might a short term measure last? four to six weeks one gop source tells cnn. republicans may agree if the president promises to negotiate. but it's far from a breakthrough without some sort of concession like a cut in spending, a stopgap measure may not clear the house. >> the long and short of it is
6:05 am
there is going to be a negotiation hero. we can't raise the debt ceiling without doing something about what's driving us to borrow more money and to live beyond our means. >> reporter: the house vote tuesday to create a congressional committee on paying the debt limit including federal employees working without pay. the obama administration threatened vetoes, a stalemate still and the clock is ticking louder and louder. now if, carol, the u.s. were to default in the middle of this month, not only would the credit standing of the u.s. be at risk, but you also have tens of billions of dollars in payments that are due come november 1st that would go unpaid and they include to social security recipients. you're talking about medicare, disability, and to active duty military. these are very real consequences that put a lot of pressure on politicians on both sides of the aisle. >> brianna keilar live at the
6:06 am
white house this morning and speaking of consequences, the stalemate in washington is hitting wall street, too. it hurts the most. and that would be the bottom line. stocks have fallen four out of the last five days. the threat of default could mean bigger losses for investments like your 401(k). some on capitol hill are tone deaf to the consequences of refusing to raise the debt ceiling. >> the problem is we continue to kick it down and pretty soon everything is going to continue as it is until it doesn't. and when it doesn't, that's when the ka tass troe if he comes. i'd rather have a managed catastrophe now which i don't think will be there. this is what the media does. they say default equals not raising the debt ceiling. that's not true. that is not true. those are two different and distinct things. >> cnn's christine romans joins me now. i'm trying to figure out what a
6:07 am
managed catastrophe might look like. >> a catastrophe that's been managed. look, you know, it's interesting to me that he said that, too. talking about kicking the can down the road. we've been doing this for a very, very long time. now business leaders are lobbying in a very different way in washington. they're going to congress members and saying, look, we really need to raise this debt ceiling. the economy is too fragile here to be messing around with all of this. they lived through the financial crisis, carol, once before. they don't want another one. they don't want one that looks like the great recession. listen. >> reporter: stock markets are tumbling as the debt ceiling deadline looms and the government remains partially shut down. and you may start foeeeling the reprecushions. lawmakers are talking to the country but that is it not helping ease the nation's concerns. >> we shouldn't have to get permission every come months to keep our government open or to prevent an economic catastrophe.
6:08 am
>> reporter: as the president spoke, the selling continued. the dow dropped 159 points or 1% by tuesday's close. >> we can't raise the debt ceiling without doing something about what's driving us to borrow more money and to live beyond our means. >> reporter: since the shutdown began, the dow is down 2.6% and with no solution in sight, america's top ceos are getting fed up. >> we're the most important economy in the world. we have a reserve currency of the world. payments have to go out to people. if money doesn't flow in, then money doesn't flow out. >> the way forward is not easy. it requires a lot of sacrifice and it requires a lot of flexibility. it requires a lot of compromise. we expect the same will happen with the political architecture. >> starbucks ceo wrote a letter asking for an end to the gridlock. he's das pointed by the level of irresponsibility and dysfunction with our elected political leadership. >> the debt ceiling debate is the biggest threat to your
6:09 am
investments like your 401(k) and mutual funds and portfolio. >> the debt ceiling doesn't make any sense. it should be banned as a weapon. it should be like nuclear bombs, basically, too horrible to use. >> reporter: the result of the government's inaction could be tat stro catastrophic. so it's too horrible to use the debt ceiling. you heard that from senator coburn that a managed catastrophe is better than a catastrophe later. clearly, they're using this line. business leaders, ceos, so much consensus, carol that, it simply is not a good idea to not raise the debt ceiling. some economists actually saying not raising the debt ceiling is a vote for a recession in the near term. carol? >> christine romans reporting from new york this morning. despite the budget impasse, wall street did hear news they liked. president obama is expected to nominate janet yellen today to replace ben bernanke as the fed chair. she is the current vice chair of the federal reserve's board of
6:10 am
governors and a former fed president. she will be the first ever woman to head a major central bank. we'll have special live coverage of her nomination at 3:00 p.m. eastern with wolf blitzer. and off duty undercover new york city police detective is facing charge this is morning in the violent confrontation between a group of motor cyclists and an suv. police say they have video of that undercover officer participating in the altercation but they have not released it publicly yet. the officer and another biker are expected in court later today. susan candiotti outside the courthouse with more for you. good morning. >> good morning. imagine five bikers charged so far in connection with this case. that's so far. and those five include, as you said, an off duty undercover new york police detective. now our sources are telling us that this off duty cop is seen on video, we haven't seen the video yet, but he is seen
6:11 am
smashing the rear window of the suv. and then this is a cop who didn't just graduate from the police academy. he's a veteran. he's been with the force for many years, 32 years old. and another biker was also arrested. this one a civilian yesterday. he was charged with, and he is allegedly seen on camera, helping to pull the driver out of the car. he is seen at the driver's door. now our cnn legal analyst says that in regard to the junt cover police officer who was charged, even if he is convicted, he still could lose his job. >> as police officers, they have an obligation under nypd regulations to break their cover if they're undercover and to come to the assistance of any civilian who is in danger. and having looked at this video, clearly the civilians in that car looked like they are in danger. >> and we fully expect to see
6:12 am
that police officer in court sometime today. the manhattan district attorney's office issuing a statement about what's been happening saying this -- the nypd and district attorney's office are methoticly scrutinizing the evidence to build a strongest possible case and our continuing effort to hold accountable those responsible. a new detail about this may have started. this is coming to us from the helmet camera biker who turned on his camera after he said he saw the sun roof of the suv open up and someone threw out a water bottle that hit one of the bikers. the biker said something could go wrong here. the suv is starting to swerve. that's when he decided to hit the record button. >> interesting. going back to the undercover police officer, i'm struggling to understand how helping this driver out could have blown his
6:13 am
cover. >> yeah. it's hard to understand why according to our sources the officer allegedly waited three days to tell anyone about what he had seen or the incident or anything else because he was afraid to blow his cover. it's hard to understand a reason why that might have happened. now he reached out to his lawyer. we haven't heard back. the police union who represents him saying they have no comment at this time. >> susan candiotti reporting live from new york city. still to come, the tug of war between the white house and congress continues. now one former senator says it is time to reward those who actually want to build bipartisanship and punish those who don't. (knochello?
6:14 am
hey, i notice your car is not in the driveway. yeah. it's in the shop. it's going to cost me an arm and a leg. that's hilarious. sorry. you shoulda taken it to midas. get some of that midas touch. they tell you what stuff needs fixing, and what stuff can wait. next time i'm going to midas. high-five! arg! i did not see that coming. trust the midas touch. for brakes, tires, oil, everything. (whistling) for aveeno® positively radiant face moisturizer.
6:15 am
[ female announcer ] aveeno® with soy helps reduce the look of brown spots in 4 weeks. for healthy radiant skin. aveeno®. naturally beautiful results. ♪ ♪ [ female announcer ] with five perfectly sweetened whole grains... you can't help but see the good.
6:16 am
checking our top stories. a body in a stairwell in a san francisco general hospital is believed to be that of a missing patient.
6:17 am
she was last seen in her hospital room on september 21ed of. 17 days later, the hospital staff didn't know where she was. >> any time to find a dead body in a stairwell of a hospital, hospitals are places for healing. and certainly san francisco general has done a lot of that over the years. what is happening here today is very distressing. >> hospital officials say they have no idea how her body ended up in an extearer stairwell. police and the hospital are both investigating. two high school football players in ohio are facing charges over a sex video. authorities say the two made with a 14-year-old girl. cnn affiliate reports the two male students are 17 and 18 years old. both have been charged as juveniles. school officials are cooperating with police. frustration with the government shutdown isn't just being felt out side of washington. it prompted john mccain to head to the senate floor and slam congress for not being able to
6:18 am
"talk like grownups." >> let's find a way out of this. let's find a way to sit down -- i don't care if it's appointing pep. i don't care if it's informal conversation that's we've been having back and forth. but there should be a way out of both of these dead ends that we are in. we know how it's going to end. we know how it's going to end. sooner or later, the government will resume its functions. sooner or later we will raise the debt limit. so why don't we do this sooner rather than later? there's a number of issues that we could sit down and negotiate within an hour if we will will stop -- stop attacking each other and impugning's people integrity and honor. >> integrity and honor, one of the colleagues joins me now. she is olympia snow. good morning, senator. >> good morning, carol.
6:19 am
>> are you kind of glad you're not part of this? >> well, i'm sad about it. sad for the reasons why i left which was the polarization. i didn't expect to diminish in the short term. and sad for the country right now that it's reached this point once again. another low, you know, in congressional action. and that's regrettable for the country, frankly. i travel around the country, i can assure you people are so frustrated, they're angry. they're dispairing. they feel anguish. they're facing hardships in their own lives. they expect to have strong leadership if washington to solve the problem, not create them. >> your group spot lights law makers that seek common ground ab sfrent that list are people like ted cruz and michelle back man. you say there should be a penalty for law makers who do not attempt consensus. what penalties should ted cruz pay? >> i think, frankly, you know, what the penalty should be and
6:20 am
obviously it's going to work in some cases and not in others, depending on constituencies, the fact is that as americans, we have to value bipartisanship, building consensus and compromise among our lawmakers. it isn't a capitulation on your principles or it isn't a dirty word. we have to value it. we are representative democracy and we get the government we demand. and we can weigh in on elections. we can weigh in on the interim right now. the public should be engaged. i urged audiences, make sure you're communicating about how upset you are about what is transpiring in washington. i just read recently where people are surprised that there hasn't been a major outcry or backlash on the public. well, i can tell you, the public feels very differently. they're angry. and so they should communicate that to their lawmakers to make sure there is no question about how people feel about this lack
6:21 am
of action and it's deplorable. >> is ted cruz hurting the republican party? >> i think, you know, most certainly. i think that this all or nothing, win at all cost and this lockdown without any regard to the implications and ramifications, it was never an acceptable strategy to begin with to tie repealing or defunding the affordable care act. congress has not passed a bunt this year as it has not passed in last four years. the largest economy on earth operates without a budget for four consecutive years. that's why we're in this situation. they didn't pass any appropriations and they didn't pass a budget and reconcile the differences and do what they need to do as lawmakers and
6:22 am
uphold their responsibilities. >> in your mind, senator, what is the way out of this? >> i think the president and leadership has to sit down right now and determine a way out. which is, you know, they started that process by indicating their prepared to end the shutdown and raise the debt ceiling. it's a question of which is going to come first in terms of discussions. i think they should have a discussion on a framework that can work in tandem with the votes. but it has to happen soon. senator mccain said, you know, take some action. move forward. and that's the key for this country. we should never suggest that we're going to default, you know, on the full faith and credit of the united states of america. it has enormous ramifications and implications. particularly in this harsh political environment. people have raised real questions as to whether or not we even have the capacity to make any decisions anymore as a country because of the dysfunction that exists in
6:23 am
washington. >> senator snow, thank you so much for joining my this morning. i appreciate it. >> thank you, carol. >> still to come, the father of that 9-year-old boy who hopped aboard a flight to vegas is speaking out. >> i love my son. anyone, please help me. please. >> we'll tell what you other trouble authorities say this 9-year-old has gotten into and how much longer he may be staying in sin city. i'm christina caradona,
6:24 am
i'm a fashion blogger, so style is my thing. and i'm not gonna let my period get in the way of what i want to wear! [ female announcer ] tampax radiant protects 30% better and comes with a resealable wrapper for discreet disposal. mix and match your protection with the whole radiant collection. are still high in acidic content. if your enamel is exposed to acid and you brush it away, you know, then it's gone. i would recommend that they brush with pronamel. they don't need to cut out those foods but you can make some smart choices.
6:25 am
6:26 am
we're hearing for the first time from that 9-year-old boy's father that snuck on a plane. he thought his son was at a friend's house at the time. the dad also says he's been trying to address his son's behavioral problems since the boy was 5 years old. george howl is in minneapolis with more for us this morning. good morning, george. >> carol, good morning. so for the last six days plus we've watched this saga play out
6:27 am
between two different states. we now know whatever happens in vegas the boy will not stay in vegas. a source with information close to this investigation tells me that he will be returning to minneapolis. his father who is anxious to see him admits his son has a history and that he's no angel. >> i'm not giving up on my son. he just confused. >> reporter: an emotional father of a 9-year-old boy speaking out for the first time after his son slipped through tsa security cracks and sneaked on to a delta flight from minneapolis to las vegas without a ticket. >> i don't have an angel, okay? i have a 9-year-old. to me, he's got a behavioral problem. >> reporter: the boy whose father says he is a charmer has been in protective custody in nevada for the last six days. >> i don't know what to do. i love my son. >> reporter: passing through security checkpoints of tsa screening and airport spokesman
6:28 am
says surveyance video shows the child boarding the plane while the delta agent was distracted. the father claims he's been asking for behavioral help since his son was 5. >> is there anyone, please, help me. please. >> reporter: according to a report by the minneapolis "star tribune," director of the human services and public health department says there have been four child protection assessments on the boy's family since 2012. in an e-mail obtained by the paper, the agency's director described the boy as challenging and says he stole a car and was arrested on highway 35 just weeks ago. finally, there are allegations concerning a troubled past. moore in her e-mail wrote that the boy claimed his mother once held a knife to his throat and that his mother was "stabbed and died." >> his mother has not spoken publicly yet but a source close
6:29 am
to the investigation con firmdz th -- confirms she works at the airport. >> we've been working to backstop of some that information. we reached out to the health department to try to confirm some of the information in that report. but at this point, carol, they are not commenting on the content of that e-mail that was obtained by the paper. >> it's just so unusual to hear of a 9-year-old stealing a car unless, of course, he was afraid he was trying to get away spr something. we don't know the details yet. >> still unclear exactly why he ran away. but again, keep in mind that the pattern here. according to what we see there from the "star tribune," this sort of thing happened before. in fact, there is even a report according to that report that the child went to a water park nearby, used the metro system to get there. so he's not an unfamiliar with how to use the metro system. he gets around town, knows how to do it. so there is a pattern, it seems. >> all right. george howl reporting live from minneapolis this morning.
6:30 am
still to come, congressman paul ryan has been called the standard-bearer of the republican party. we'll tell you why his op-ed is raising eyebrows this morning, not for what he says, but for what he doesn't say. here we honor the proud thaccomplishmentsss. of our students and alumni. people like, maria salazar, an executive director at american red cross. or garlin smith, video account director at yahoo. and for every garlin, thousands more are hired by hundreds of top companies. each expanding the influence of our proud university of phoenix network. that's right, university of phoenix. enroll now. we've got a frame waiting for you. trust your instincts to make the call. to treat my low testosterone, my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal in about 2 weeks in most men.
6:31 am
axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. ask your doctor about the only underarm low t treatment, axiron. ah, mirabai, mirabai, mirabai hi patsy jambo gooday cobba dude look what the cat dragged in eduardo lucas
6:32 am
oh! mama ni hao ma hello mama namaste wrong number? let me talk hi bon jour priviet woohoo this is dr. flamenco. "dr. flamenco?" ♪
6:33 am
good morning. i'm carol costello. thank you so much for joining me. later this morning dover air force base will pause to honor troops killed in afghanistan as their remains are returned to the united states. among those paying tribute defense secretary chuck hagel. hagel will be there and some of the families of the fallen will not and it's because of that partial government shutdown. barbara star has more for you. >> reporter: for these troops just killed if afghanistan, their families are being denied
6:34 am
government death benefits until the shutdown is over. >> and america could fail the families of our fallen heroes. appalling. frightening. shouldn't we be embarrassed about this? >> shouldn't we be ashamed? >> reporter: this lance corporal's remains were brought monday to dover air force base. >> he became a marine to become somebody. and he became a brave marine. >> reporter: but his family and others will not get pentagon funding to go to dover to meet their loved one. the program is frozen until the shutdown is over. funeral and burial expenses won't be reimbursed. a $100,000 cash payment to survivors stopped. amy miller works with grieving families. there is concern for those that don't have a lot of money. >> the benefits are especially critical because they do provide
6:35 am
them with the ability to make decisions quickly. >> reporter: her 22-year-old brother christopher was killed in iraq in 2007. >> there were a number of unexpected expenses that we had not anticipated in our lives because we certainly had never thought my brother would die. >> reporter: some republicans say the pentagon already has the authority to pay the benefits. but promise a quick piece of legislation to make sure that happens. pentagon officials are adamant they need the legislative fix to get the money flowing again. and they say the proof is that congress is talking about a fix. that proves they need a legislative solution. but in the meantime, a number of corporations and groups that support military families have quietly stepped forward and are offering their financial support to families in their time of grief. barbara star, cnn, the pentagon. >> and a little later on we'll
6:36 am
talk to one of the private individuals who are stepping forward to help military families. that comes your way in the next hour. talk about wall street now. you see the market is up eight points. wall street opening higher this morning. markets getting a lift on news president obama will nominate janet yellen to replace ben bernanke. we are live at the stock stock. good morning, allison. >> eight points better than no points. i had to do a double take seeing even green on the screen. you can chafrpg janet yellen for the green you're seeing this morning. one trader telling me as wall street sees it, it's good to have certainty as to who may leave the fed. that is better to have somebody that they know and have somebody unknown thrown in. so you're looking at a bit of a u-turn for stocks after it's been a down trend for the dow. it's been down 11 of the past 14 sessions. it is off more than 350 points since the government shutdown started and since the debt ceiling fares began flaring up. as far as janet yellen goes, her possible appointment would mean
6:37 am
more of the same. the fed is going to keep jacking up the economy with the stimulus money that's been pouring into the financial system. $3 trillion being poured in since 2008. it's been a huge concern lately. the fed said i may start pulling money out with the belief that the economy is healthy enough to handle it. though not everybody is sure. once again with yellen though, the thinking is going to be more of the same. her views are close to bernanke's. investors are betting she won't be in any rush to end the stimulus. carol? >> and the president is expected to officially nominate her at 3:00 p.m. eastern this afternoon. we'll have a special report then. we'll learn a lot more about janet yellen. thanks so much. >> yes, we will. >> still to come, they've been feuding at a distance for weeks. now jimmy kimmel and kanye west are set to meet face-to-face. tonight's late night interview. will the fan the flames? this was the hardest decision i've ever had to make.
6:38 am
jim, i adore the pool at your hotel. anna, your hotels have wondrous waffle bars. ryan, your hotels' robes are fabulous. i have twelve of them. twelve? shhhh, i'm worth it& what i'm trying to say is, it's so hard to pick just one of you,
6:39 am
so i'm choosing all of you with a loyalty program that requires no loyalty. plus members can win a free night every day only at ♪ "first day of my life" by bright eyes ♪ you're not just looking for a house. you're looking for a place for your life to happen.
6:40 am
because what you don't know, can hurt you.urance. what if you didn't know that posting your travel plans online may attract burglars? [woman] off to hawaii! what if you didn't know that as the price of gold rises, so should the coverage on your jewelry? [prospector] ahh! what if you didn't know that kitty litter can help you out of a slippery situation? the more you know, the better you can plan for what's ahead. talk to farmers and get smarter about your insurance. ♪ we are farmers bum - pa - dum, bum - bum - bum - bum♪
6:41 am
the epic battle between kanye west and jimmy kimmel may be finally coming to a head. the superstar and comedian have been sparring by phone, by twitter and on television. now a rep confirms that kanye will be a guest tonight on abc's "jimmy kimmel live." a.j. hammer joins me from new york. i hope they have a cage fight. >> carol, it's hard for me to imagine jimmy kimmel, one of the nicest guys in tv and showbiz having a battle with anybody. you wouldn't think of kanye and jimmy taking each other on. this whole thing is certainly something that caught jimmy kimmel by surprise a couple weeks ago. kanye was very upset with kimmel over a skit they did and kimmel reacted. >> did anyone else get a very
6:42 am
angry call from kanye west about an hour ago? just me? okay, i didn't know if he was mad at all of us. >> so what happened is the show took a real interview that kanye had given to the bbc and had two children read it verbatim. that's hilarious, right? but this infuriated kanye. he did try to resolve his filings by calling up jimmy kimmel and he let loose with a string of twitter blasts. jimmy reacted to that on the show. i can't share most of that with you because of the profanity mixed in. but just watching, you don't even need to hear what they're saying, it's very funny. unless you think it's a publicity stunt. i don't think that's the case. a lot of people are speculating that because kimmel was behind that twirking girl, that got him a lot of press. kimmel denies this is a stunt. this was announced yesterday and it's not like they're milking it. i'm eager to see what happens. >> i'm going to set my dvd, are
6:43 am
you kidding? >> good luck with that. your dvr maybe. >> dvr, right! oh, i'm so mortified now. i've been mortified before. i can take it. a.j. hammer, thanks so much. >> here's what's new in the next hour, a high school spanish teacher under fire for her "playboy" past. it's not illegal but some parents say it sets the wrong example. >> can you be an effective teacher when a classroom full of high schoolboys are envisioning you naked? >> plus, the controversy behind cross fit. it's one of the most popular workout trends in the country. it has a reputation for being intense and very infective. but it is also dangerous? that's all new with the next hour of "cnn newsroom."
6:44 am
6:45 am
6:46 am
this morning the internet is all abuzz over an op-ed written by paul ryan. in today's "wall street journal," he calls for an end to the stalemate in washington but does not address the republican signature goal, the killing of obama care. for some specifics on what paul ryan wrote, "we need to open the
6:47 am
federal government. we need to pay our bills today and make sure we can pay our bills tomorrow. so let's negotiate an agreement to make modest reforms to entitlement programs and the tax code." now the backlash. "much like white house press, paul ryan doesn't mention obama care in "the wall street journal" op-ed." "it seems like paul ryan has successfully angered the right." joining me is john avlon. good morning, john. >> good morning, carol. >> so first of all, let's tackle conservatives' concerns. why didn't paul ryan didn't mention obama care in the op-ed. i read it. it's nowhere in here. >> yeah. i think he realizes it is a nonstarter with the president which, you know, should have been obvious like a year ago or right after the election at least. look, what paul ryan is doing,
6:48 am
however, really deserves applause. he is putting forward a path forward, something that a real conversation can be about. areas of surprising agreement that could actually help us take this whole shutdown and the debt ceiling debacle and turn it constructive for the country. props for paul ryan for actually putting forward a plan. if he angers the far right, sometimes that's a sign you're doing something right. >> he doesn't give the president a pass. the president is giving congress the sigh lept treatment. he is refusing to talk even though the federal government is about to hit the debt ceiling. does he suggest some things that democrats might agree on. he says why not sit down and talk about modest reforms to medicare, the tax code? why not cut, you know, cut discretionary spending a bit and let's try to balance this. let's come up with a budget and actually pass one. >> absolutely right. look, i think paul ryan and maybe even speaker boehner are nostalgic for the outlines of the grand bargain will be
6:49 am
discussed in 2011 that they ultimately walked away from. there is some common ground to be built upon. the president put forward in his budget some entitlement reform. that is something to work with. there is broad agreement on tax reform. but i do think ryan needs to own a bit of difficulty here. one of the reasons we haven't had the kind of grand bargains that he talks about recently is because he vote the against the bowls simpson commission he was part of. one of the reasons we're at this mess is because of ryan's budget in the house that so far apart from what the democrats passed in the senate that it's difficult to find the common ground. let's praise him for putting forward a path and realize there is common ground to be built upon, let's not ignore the past and how we got here. partly, ryan shares some share in the blame. >> i found it interesting he chose to write an op-ed and didn't do a television interview and actually saying these things. he is absent from
6:50 am
>> he has been. and frankly a lot of republican responsible voices have been absent. laults of responsible republicans are afraid of anchoring the far right at this moment of high emotion. but now is where the rubber meets the road. we're a week away and change from the debt ceiling. so it really is up to some of these folks to get up off the sidelines and get in the game. and one of the things ryan does in this op-ed that anchored a lot of folks on the far right as well, i'm sure, the sequester was stupid. let's go back and look at more targeted cuts. that is hopeful. but responsible voices need to grow a spine, step up and start putting forward ideas. >> john avalon, thanks for your insight this morning. appreciate it. checking our top stories at 50 minutes past. some people are defending the georgia tech fraternity member
6:51 am
that sent out an e-mail titled "luring rur rape bait." they say, it's just a joke. it was blown out of proportion. >> there's a few pledges that aren't super good with girls and it was sort of getting on them. it was like a big brotherly kind of thing. >> joke. >> it was a joke. >> the e-mail gave advice on how to hookup with a girl. always use their hands or aways to guide their dancing in order to maximize your pleasure you are. always start with the making out, no raping. they're now investigating. boston school buses rolling against at least for this morning. they went on a wildcat strike tuesday. the drivers plan to meet with the bus company today. no word yet on whether those buses will make their afternoon runs. drivers propose a new gps system that allows parents to track
6:52 am
buses online. emminem's daughter was crowned homecoming queen and he had to watch from a screen because he didn't want to cause a scene. he wanted his daughter to have a shining moment. >> a come from behind win forces a deciding win five in the a.l. division series. congratulations boston fans. we'll be right back. la's known definitely for its traffic, congestion, for the smog. but there are a lot of people that do ride the bus. and now that the buses are running on natural gas, they don't throw out as much pollution into the air. so i feel good. i feel like i'm doing my part to help out the environment.
6:53 am
at any minute... could be a victim of fraud. most people don't even know it. fraud could mean lower credit scores, higher loan rates... ...and maybe not getting the car you want. it's a problem waiting to happen. check your credit score, check your credit report, at america's number one provider of online credit reports and scores. don't take chances. go to
6:54 am
because what you dont know can hurt you.urance, what if you didn't know that it's smart to replace washing-machine hoses every five years? what if you didn't know that you might need extra coverage for more expensive items? and what if you didn't know that teen drivers are four times more likely to get into an accident? 'sup the more you know, the better you can plan for what's ahead. talk to farmers and get smarter about your insurance. ♪ we are farmers bum - pa - dum, bum - bum - bum -bum ♪
6:55 am
red sox nation rejoicing this morning because their team is heading back to the american league championship series. >> happy times in boston right now, carol. and what a difference a year makes. last year, last. this year, best record in baseball. and now they're heading back to the american league championship series for the first time in five years. last night think scratched out three runs in the final three innings to get the win. they take the series, 3-1. the red sox will now wait for the winner of the tigers-a's series. and there was a little controversy in this one in the seventh inning. vikt irmartinez. take a look.
6:56 am
josh redding going up for the ball. and they grab it before he's able to make a play. what do you think? >> i think that they ruled that that guy couldn't catch it and it's a home run. >> that's what the umpire said. they reviewed it, called it a home run. tigers go on to win the game, 8-6. tonight on cbs, the cardinals and pirates will take on. first pitch set for 8:00 eastern. breacher, see texans quarterback. why? angry fans went to his house in houston to yell at him about his poor play. he had to call the police. the fans left on their own before the police arrived. he has fullen out of grace with his fans. he's thrown interpretations with return touch downs. a team even in worse shape is the new york giants.
6:57 am
they're 0-5 off to their worst start in 34 years. a new policy in a popular club, g-strings, yes, g-games, no. they're no longer showing the games on tv because they've become depressed and upset. and the dancers have actually been complaining because the boos are distracting. >> and now i totally understand. i can't even comment on that because it's all so bad. thanks so much. next hour of "newsroom" after a break. who has 11 major brands to choose from? your ford dealer. who's offering a rebate? your ford dealer. who has the low price tire guarantee, affording peace of mind to anyone who might be in the market for a new set of tires? your ford dealer. i'm beginning to sense a pattern. get up to $140 in mail-in rebates when you buy four select tires with the ford service credit card.
6:58 am
where'd you get that sweater vest? your ford dealer. i've got a big date, but my sinuses are acting up. it's time for advil cold and sinus. [ male announcer ] truth is that won't relieve all your symptoms. new alka seltzer plus-d relieves more sinus symptoms than any other behind the counter liquid gel. oh what a relief it is.
6:59 am
7:00 am
good morning. thank you so much for being with me. i'm carol costello. it is day nine of the partial government shutdown. and in washington, the posturing of politics may have met its match. later this hour, the remains of u.s. troops killed in afghanistan will be returned. the families of those fallen service members are being denied the financial help they were promised because all of that partial government shutdown. among some lawmakers, the disgust over the stalemate is almost unbearable. >> today, military benefits
7:01 am
denied to families for fallen troops. shouldn't we as a body, republican, democrat, no matter who we are, shouldn't we be embarrassed about this and shamed. >> there's a lot of bomb blast and blame. listen to the president and speaker of the house trading perches in dueling news conferences. >> this morning i had a chance to speak with speaker boehner. >> as you all know i had a phone call with the president of united states this morning. >> having such conversations and talks and negotiations shouldn't require hanging the threats much a government shutdown over the heads of the american people. >> i was disappointed that the president refuses to negotiate. >> let's stop the excuses. take a vote in the house. end the shutdown right now. >> the president's position thathat r that, listen, we're not going to
7:02 am
sit down and talk to you until you surrender, it's not sustainable and not our system of government. >> the greatest nation on earth shouldn't have to get permission just to keep our government open or prevent an economic catastrophe. i'm not budging when it comes to the full, credit and responsibility of the united states. >> we can't raise the debt ceiling when it's driving us to borrow more money and live beyond our means. >> and this is the credit worthiness of the united states that we're talking about. this is our work. this is our good name. this is real. >> i don't come here to shut down the government or default on our debt. >> we're not going to pay a ransom for america paying its bills. >> this isn't be me or frankly about republicans. this is about saving the future for our kids and grandkids. >> there's a way to solve this.
7:03 am
it has to include re-opening the government and saying america is not going to default and it's going to pay our bills. >> it's time to have the conversation. not next week, not next month. the conversation ought to start today. >> we can't make ex-extortion routine as part of our democracy. it doesn't function this way. >> what the president said today was, if there's unconditional surrender by republicans, he'll sit down and talk to us. that's not the way our government works. >> i know what you're thinking, just sit down and talk. anyway, the white house is summoning key democrts to a meeting this afternoon. brianna keilar is at the white house with more details on this. >> reporter: i'm told by a white house official not to read too much into this. this is just congressional outreach and we'll expect that house republicans -- but there is a possibility of some opening
7:04 am
to discussion of a stop gap measure. it's not a breakthrough. but it is something we're hearing the white house not dismissing and house republicans not dismissing as politicians feel a lot of pressure because of the shutdown and the debt ceiling. >> so there's a little teeny room in there for both sides to chew on. there's only a week left before october 17th. will it widen any time you think? >> reporter: it's unclear. and i think right now, this is the only sort of glimmer of hope. and it's kind of unclear whether it's truly a glimmer of hope. but the door hasn't been slammed on it. what you heard was president obama yesterday being open to the idea of a short-term measure to avoid default and re-open the government. how long will this be, four to six week we're told by a house republican. the president wants longer than that. but the white house officials say, hey, a short-term measure
7:05 am
is better than defaulting. but here is the rub. we don't expect that it would get through the house and pass the house republicans if they don't get some sort of concession. and the white house is still insist they're not giving anything on this. a clean way to reinstate government funding. it's now an issue of finding that sweet spot. what might the white house agree to that the house republicans would consider at least getting a little something in all of this. and that's really not clear. they're not even to the point of discussing that. >> kbf the president heads to the meeting with the democrats, he will nominate janet yellen to replace benefit bernanke as fed of the federal reserve. >> it's important because this is a really big job here, running the fed. this is a woman, carol, who was once called a small lady with a large iq.
7:06 am
she has 40 years of economic research, ph.d. from yale. she moved on to the federal reserve. and she's no stranger to politics. she left the fed in 1998 to become the chair of the economic adviser. she's helped steer policy through the worst of the financial crisis. she is seen as a steady hand. her biggest challenge, if confirmed by the senate, as expected, will be to wind down to stimulus and allow the american economy to stand on its own. that means that this fed job is the most important financial job in the world especially from the absence of leadership from congress. she was one of the few who saw the housing crisis come. she warned this in 2007, she said, in termed of the risk to the outlook for growth, i still feel the presence of a 600 pound
7:07 am
gorilla in the room and that is the housing seconder. she is the topic of senate democrats, carol. >> so the president will nominate her, but she still have to go through the confirmation process. and that involves congress. how likely is that going to be an easy process or hard process? >> it's interesting. most people are telling us they expect confirmation. a senator tweeted last night, he said, i vote the against her original nomination in 2010 because of her donish views on monetary policy. he's tweeting and saying people that he have reservations. but he conceded she will likely be confirmed. >> seven minutes past the hour. let's check other top stories. boston school buses are rolling, at least for this morning. they went on a wildcat strike tuesday. they say the drivers plan to
7:08 am
meet with the bus company today. no word yet on whether the buses will make their afternoon runs. drivers propose a new gps that allows parents to track buses on line. we're hearing for the first time of the father of the 9-year-old who sneaks on board a plane. he thought he was at his friends house at the time he was flying across the country. . >> you know, i don't understand. you got so much security check at these airports, how can you let a 9-year-old sneak past security, get on the plane without anyone stopping him, questioning him, or anything? we're not bad parents. we thought he was at a friend's house. >> the father says he's been
7:09 am
trying to address his son's behave i don't recall problems since he was 5 years old. fireworks in new jersey. among the topics, speculation about a possible christie run pour the white house in 2016. speculation, christie it not seem to deny, saying emd not declare it during this debate. >> people been talking about me rushing for president in this state since 2010. they said i would do it in 2010, itds i wouldn't, and i didn't. and the fact is after 2017, i'll be looking for a new job anyway. so as we go forward, i'm going to continue to do my -- >> the polls say he has as much as a 43% advantage over his rival for governor. still to come, an off-duty police officer is arrested in the suv crisis.
7:10 am
that undercover officer has now been charged in this mess. great. this is the last thing i need.) seriously? the last thing you need is some guy giving you a new catalytic converter when all you got is a loose gas cap. what? it is that simple sometimes. thanks. now let's take this puppy over to midas and get you some of the good 'ol midas touch. hey you know what? i'll drive! and i have no feet... i really didn't think this through. trust the midas touch. for brakes, tires, oil, everything. (whistling)
7:11 am
was a truly amazing day.ey, without angie's list, i don't know if we could have found all the services we needed for our riley. from contractors and doctors to dog sitters and landscapers. you can find it all on angie's list. join today. diarrhea, gas, bloating? yes! one phillips' colon health probiotic cap each day helps defend against these digestive issues with three strains of good bacteria. live the regular life. phillips'. hearty cheeseburger. creamy thai style chicken with rice. mexican-style chicken tortilla. if you think campbell's 26 new soups sound good, imagine how they taste. m'm! m'm! good! imagine how they taste. have hail damage to both their cars. ted ted is trying to get a hold of his insurance agent. maxwell is not. he's on setting up an appointment with an adjuster. ted is now on hold with his insurance company. maxwell is not and just confirmed
7:12 am
a 5:30 time for tuesday. ted, is still waiting. yes! maxwell is out and about... with ted's now ex-girlfriend. wheeeee! whoo! later ted! online claims appointments. just a click away on waffle bars... fancy robes... seems every hotel has something to love... so join the loyalty program that lets you earn free nights in any of them. plus, for a limited time, members can win a free night every day. only at an off-duty, undercover new york city police detective is now facing charges between a group of bikers and an suv.
7:13 am
police say they have video of this officer participating in the altercation, but they have not released it publicly. the officer and another biker are expected in court today. susan candiotti is outside the courthouse with more. >> reporter: good morning. yes, we're about to see the two bikers who were last arrested last night in connection with this case, including that off-duty, undercover new york police detective. and he is allegedly seen on camera smashing the rear window of that suv that has been chased. so far at this point, five people have been charged for a number of charges, including gang aassault and creating a riot. as we learn of more arrests, online video like this, painful to watch. a biker seen kicking a driver lying motionless and bloody on
7:14 am
the ground. an off-duty undercover detective under arrest. 32-year-old man was shown in this video has gone viral. it shows him running over bikers after his tires were slashed. the off-duty cop is charged with two felonies, criminal mischief and being involved in a riot. >> internal affairs bureau is looking at this. and they'll continue to do so. >> reporter: another biker also charged with gang assault and criminal mischief. a law enforcement says they have video proving that he took place. they say he waited four days before reporting the incident. they say the detective could also lose his job, even if he's
7:15 am
not convicted. >> as police officers, they have an obligation under nypd regulations to break their cover and to come to the assistance of any civilian who is in dangerment and having looked at this video, clearly the civilians in that car look like they're in danger. >> reporter: police released photos of four other bikers in connection with the attack. the still frames were isolated from that video showing the man getting stomped on. as for the man wearing the video cam, he's now revealing why he pressed the record button. he said he saw the driver throw a water bottle out hitting a biker. he's not expected to be charged. now, you might be wondering how the police officer's lawyer is reacting to all of this. we put in multiple calls to him but have not heard back. the case clearly isn't over yet.
7:16 am
the district attorney's office putting out a statement saying it is moving forward methodically analyzing every bit of evidence. >> thank you, susan. we want to bring in new york councilman, good morning. >> good morning. how are you doing? >> i'm good. thank you for being with me. when you hear that an undercover police officer allegedly took part in this assault, what goes through your mind? >> totally unacceptable behavior on behalf of an nypd which we believe and say are the finest in the world. >> well, that he didn't come -- i'm just so shocked about it myself. that he didn't come forward for three days because he didn't want to blow his cover. how do you take that story? >> i do believe that the police officers have a duty to report
7:17 am
to their higher ups an nypd in order for them to evaluate. if in fact he was on assignment on this bicycle gang, that would be a different story. but my understanding in reading and listening to the news is that they were not on assignment. they happened to be owners of motorcycles and maybe members of the motorcycle club and riding along with this. but it's a different thing when you're on undercover assignment versus you are an undercover officer and off-duty. totally not acceptable for not coming forward right away. >> the mere fact that a police officer would be a member of this -- what do you call this? we've been calling it a motorcycle gang. but it seems like this behavior might have happened before from this particular motorcycle club. so the fact that a police officer belongs to this club, isn't that disturbing? >> not really.
7:18 am
because there are many, clubs in and around new york city. to be a member of a club is not -- nothing is wrong with that. but when you engage in illegal activity such as wanting to close down 42nd street like they did in 2012 -- >> that's what i'm saying. they've done tricks like this before. they've stopped traffic. this motorcycle club organic isn't totally incident before this incident, right? >> if you're doing illegal things, it's totally unacceptable. and i don't paint all motorcycle clubs or individuals who ride motor vehicles with the same brush. obviously, this incident here is a terrible situation on everyone. i mean, this guy, mr. linde, could have been killed. he was injured. bun motorcyclist is in the hospital. it's a bad situation all over. it doesn't look good for motorcycle riders, it doesn't like good for nypd, it doesn't look good for new york city.
7:19 am
>> so the city council passing any sort of law that might prevent behavior like this in the future? >> i think there's already laws in place. i do believe as a legislatorer that nypd obviously from everyone's opinion is going to be cracking down harder on these motorcycle gangs that are riding around that want to stop traffic in order to do their tricks and things like that. and i do think, though, a lot of the dirt bikes that are running around the new york city streets, that's what members of my con stint waens have been complaining about. more so than the motorcycles in and around the areas of new york city. >> council man jackson, thank you so much. >> thank you. and the videos are coming forward. and more and more evidence is coming forward. as you know, six people are arrested at this point in time. >> right. not over yet. you're right about that.
7:20 am
still to come in the "newsroom," you'll never have to panic over a lost debit card ever again. coming soon, the cardless atm. how it works and why some say it's safer than the piece of plastic you've been carrying around. the day my doctor told me i had diabetes, i remember thinking there's a lot i have to do... check my blood sugar, eat better. start insulin. today i learned there's something i don't have to do anymore. my doctor said with levemir® flexpen... i don't have to use a syringe and a vial. levemir® flexpen comes prefilled with long-acting insulin taken once daily for type 2 diabetes to help control high blood sugar. dial the exact dose. inject by pushing a button. no drawing from a vial. no refrigeration for up to 42 days.
7:21 am
levemir® (insulin detemir [rdna origin] injection) is not recommended to treat diabetic ketoacidosis. do not use levemir® if you are allergic to any of its ingredients. the most common side effect is low blood sugar, which may cause symptoms such as sweating, shakiness, confusion, and headache. severe low blood sugar can be serious and life threatening. ask your health care provider about alcohol use, operating machinery, or driving. other possible side effects include injection site reactions. tell your health care provider about all medicines you take and all of your medical conditions. get medical help right away if you experience serious allergic reactions such as body rash, trouble with breathing, fast heartbeat, or sweating. flexpen® is insulin delivery my way. covered by most insurance plans, including medicare. ask your health care provider about levemir® flexpen today.
7:22 am
because what you don't know, can hurt you.urance. what if you didn't know that posting your travel plans online may attract burglars? [woman] off to hawaii! what if you didn't know that as the price of gold rises, so should the coverage on your jewelry? [prospector] ahh! what if you didn't know that kitty litter can help you out of a slippery situation? the more you know, the better you can plan for what's ahead. talk to farmers and get smarter about your insurance. ♪ we are farmers bum - pa - dum, bum - bum - bum - bum♪
7:23 am
coming soon, the cardless atm. that's like a remote control for the cash machine. all you need is an app on your mobile phone to order up a stack of benjamins. developers say it's safe. and you won't have to worry about losing your debit card. it sounds promising. >> you can order lunch on your phone, call a cab, rent movies. what you do is pretty much what you said, download an app that's on your phone, you order up how much money you want to withdraw. and when you're at the atm, you use the app, and you scan a code, and the money comes out. you can order money up to 24 hours in advance or while you're waiting in line. this is just being tested out at
7:24 am
three small banks. and it is basically, carol, a way for the banks to attract more tech savvy customers and people like me who like more convenience at the atm. >> what happens if someone steals your phone? >> that was exactly what i thought. especially with phones a huge target with thieves. you can't just open the app. you have to enter a pass code. and thieves would need to know your bank account information and your pin. and when thieves set up cameras, that wouldn't be possible. but a bad cell connection, what do you do? if you have lousy cell service and you need to withdraw money? don't worry. a fix is being worked on where you can still withdraw your cash no matter how bad your cell connection is.
7:25 am
if you're looking for more details, check out cnn money for all of those details. >> still to come in the "newsroom," demanding answers and confronting an indignity for military families who have suffered so much. we'll talk to one charity that is stepping in for congress. [ male announcer ] campbell's angus beef & dumplings. hearty cheeseburger. creamy thai style chicken with rice. mexican-style chicken tortilla. if you think campbell's 26 new soups sound good, imagine how they taste. m'm! m'm! good! imagine how they taste. waffle bars... fancy robes... seems every hotel has something to love... so join the loyalty program that lets you earn free nights in any of them. plus, for a limited time, members can win a free night every day. only at (dad) just feather it out. (son) ok. feather it out. (dad) all right. that's ok. (dad) put it in second, put it in second. (dad) slow it down. put the clutch in, break it, break it.
7:26 am
(dad) just like i showed you. dad, you didn't show me, you showed him. dad, he's gonna wreck the car! (dad) he's not gonna wreck the car. (dad) no fighting in the road, please. (dad) put your blinker on. (son) you didn't even give me a chance! (dad) ok. (mom vo) we got the new subaru because nothing could break our old one. (dad) ok. (son) what the heck? let go of my seat! (mom vo) i hope the same goes for my husband. (dad) you guys are doing a great job. seriously. (announcer) love a car that lasts. love. it's what makes a subaru, a subaru. because what you don't know, can hurt you.urance.
7:27 am
what if you didn't know that posting your travel plans online may attract burglars? [woman] off to hawaii! what if you didn't know that as the price of gold rises, so should the coverage on your jewelry? [prospector] ahh! what if you didn't know that kitty litter can help you out of a slippery situation? the more you know, the better you can plan for what's ahead. talk to farmers and get smarter about your insurance. ♪ we are farmers bum - pa - dum, bum - bum - bum - bum♪
7:28 am
right now on capitol hill, the house veteran's affairs committee is about to open a hearing. lawmakers want to know more about the impact on veterans and their needs with the partial government shutdown. families of u.s. troops killed in action are being denied death benefits because of too much bureaucracy and too little authority. this morning, defense secretary chuck hagel is at dover air force base marking a return for troops remains. now one charity is stepping in to the void. and now grappling with unpaid bills and expenses, it will advance the money needs for this partial government shutdown. thank you for being with me. >> thank you for having me. >> tell us how you're reaching
7:29 am
out to military families. >> fisher house's mission has always been about military families and veteran's families. but we normally focus on the healing process. although we did build a fisher house specifically for the families fallen at developer. when we learn of the gap in the -- and this is a difficult term -- death benefits for the families, this was one of those no-brainer decisions for us. our board authorized our movement very quickly. and actually, we received a call from a senator asking us if we would help. obviously, we jumped right into the fray. and so we're basically going to cover the gap in funding the benefits to these families who have suffered enough until the shutdown is over. or until legislation is enacted that will fund it while the government is still shut down. >> you deal with the motional
7:30 am
needs of military families every day. tell us how this is affecting them emotionally? >> i have to be honest. i haven't had a chance to speak with them directly as of yet. but i can tell you, the ones that i have spoken to, the gold dash star mothers and families and so forth, this is just a very obviously emaeotional time. they have sacrificed so much and then they lose a loved one in service to this nation. it's just a very, very difficult time for them, obviously. >> hey, ken -- >> but do have this kind of, you know, add to the -- you know to the frustration and to the grieving, is just unconscionable to us. >> i think everybody would agree with that. if it you could just stand by and listen to this veteran's affairs committee meeting. they're talking about the very topic we're expressing right now. this is the chairman of that
7:31 am
committee, jeff miller. let's listen. >> they want to know if they're disability claims will be decided or further delayed. families want to know if they're loved ones will receive a timely burial at va national cemeteries. and many va employees themselves want to know whether they're be serving veterans on the job or whether they're going to be furloughed. i understand that answers to some of these questions are entirely dependent on how long this shutdown lasts. and although i want to be sure that most of us agree that we want the shutdown over quickly, it's our responsibility to ensure that the public, especially veterans understand what the current state of play is. first of all, mr. secretary, i want to say that in may the last couple of weeks getting good information about your contingency plans and effect of
7:32 am
lapses and appropriations and its effect on veterans has been very difficult for us to get the information out of your office. for example, the original feel guide that va put out regarding the shutdown impact, it first spoke of no effect. no effect, on payments to veterans or processing of their benefits. but in a later version, va stated that a prolonged shutdown would impact both, but didn't provide any details as to how it would be impacted. secondly, the veterans health administration is not shut down at all because it has received a full year's appropriation for 2014 back in march. so hospitals, clinics, and v.e. terks centers should all be open for business. yet the president made a
7:33 am
statement that said veterans will find they're support centers unstaffed and implied that counseling services for vet raps pts would be affected. third, this committee has been told that the backlog would actually end on september 30th. yet days into the shutdown, we're now informed that the shutdown prevented va's planned continued payment of overtime. fourth, although a shutdown should have a relatively uniform affect across all regional offices, as suggested by your own field guide, my staff met with several representatives from vsos last week who relayed that their members are hearing mixed messages out of different regional offices. and i think it goes without saying, none of this is ideal. some degree of confusion is to
7:34 am
be expected, and we understand that. but va employees should be worrying about va's mission of service to veterans, not planning for furloughs or managing an agency on spare change remaining from last year. however, what can never be expected is anything less than the full truth, as best as it is known at the time. this grave situation does not need to be assisted by misleading statements from anybody, statements designed to aid a political argument by any particularly party regardless of which one we may belong to. it's my hope that we can uphold the best traditions of this committee and rise above all of that today. mr. secretary, i appreciate your willingness to join us in this effort. since this hearing was called last friday, we've had a little bit more clarity on some of the issues we've been asking your
7:35 am
staff about for the last ten days. but, i thought the public should hear some of the same information. now, one last point before i conclude. last july we held a hearing on a bill that the ranking member and i introduced that proposed to advance fund the entire va discretionary budget. the administration declined to take a position on the bill, saying instead that it needed to conduct a review first. it's obvious that no review is necessary given where we are today. mr. secretary, i sincerely hope that you are making that case with the administration. and i'll follow up with you on that point during questioning. and i now recognize the ranking member for his opening statement. >> thank you, very much mr. chairman for having this hearing today. i want to thank you, mr.
7:36 am
secretary, for coming. before we begin exploring how the government shutdown is affecting veterans and the va, i want to acknowledge that the very real consequences in the lapse in appropriation has had on va employees. i know that va employees do not work solely for a paycheck. they work because they believe in helping veterans. a lot of them are veterans. and they have done a phenomenal job. and now it's time for congress to do its job. we can do this in two ways. number one, either the senate take up the va appropriation bill that was passed by the house about four months ago. or, the house can take up a clean cr passed by the senate. i don't care which one that we choose, as long as we get on with the re-opening of government and that we fully fund the va. the va contingent yensy plan and
7:37 am
field guide provide us with a rough idea of the consequences of a government shutdown. last week, we saw the immediate shutdown when it had on some of the va offices, such as the inspector general. yesterday we saw some vba and i.t. accounts run driep and thousands of va kpees furloughed. we know that the mandatory funds to pay compensation and benefits are scheduled to run out in a little over two weeks. we also know that furloughs and suspensions of programs in other agencies also affect veterans. of the roughly 2.1 million federal employees, more than 600,000 are veterans. many of them are already or expect to be furloughed. also as programs and sefbtss at other agencies are disrupted, it affects the va's ability to
7:38 am
receive the necessary information in support to deliver those services for our veterans. we know we'll hear bad news today from you, mr. secretary. important va operations have or will be suspended. some veterans will not get what they're expecting, what they deserve, and most importantly, what they have earned. this may be a difficult conversation, but one that we must have, openly, frankly and honestly. but amidst the bad news, there's some good news. with va's medical accounts under advanced appropriation, the veteran's health administration is largely unaffected by lapse in the physical year 2014 appropriation. all medical facilities are open and operation under normal status. this will continue regardless how long the current government is shut down.
7:39 am
it is clear now that in the mist of the shutdown that getting a vote on hr 813 as amended, the putting the veteran's funding first act, is necessary in the critical tep and the serves are not put at risk when there is a lapse in appropriation. and i want to thank you for signing on a letter with me that thissing scheduled for floor action. i encourage all members of the committee to sign on to that letter and send a message that veterans should not, cannot, and will not be disadvantaged by party politics in the future, regardless of which party is in control. mr. secretary, i look forward to your testimony and the questions to follow. mr. chairman, once again, i want to thank you v-much for having this very important and timely hearing today. with that, i yield back the balance of my time.
7:40 am
>> thank you. as you might imagine, this is a critical time within our government and certainly for our veterans out there. and that's why i asked the secretary -- and i am so pleased and on very short notice he was able to come in and give us some indication on where we are now and where we will be going in the future depending on how long this shutdown does in fact continue. i want to welcome to the table our first and only witness of this morning, the secretary for the u.s. department of veteran's affairs. your complete written statement, mr. secretary, will be nered into the record. and you are recognized for five minutes. >> great. members of the committee, thank you for entering my written statement. let me, mr. chairman, just recognize in the room here we have partners for all of us from our veteran's service organizations.
7:41 am
i will tell you, they've been directly helpful to me over the past four and a half years in trying to help us be better at our responsibilities of caring for veterans. but also service members and families and survivors that we are responsible for. mr. chairman, you called this hearing to examine the effect of government shutdown on benefits to veteransen and while my written testimony describes many affects due to the ongoing lapse and appropriations, let me say that all of the effects that i described and i'm going to describe of the shutdown have negative. it is an impediment to va's ability to deliver services and benefits that veterans have earned through their service. va continues to invest significant resources and time and planning for this unique, infrequent, and avoidable
7:42 am
situation. the ongoing shutdown presents a myriad of challenges. the last time a shutdown occurred in 1996, as am told, our nation was enjoying a su stain relative peace. that's not true today. we're in a war with afghanistan. providing care and benefits to veterans of that war. and the war in iraq as well. members of this latest -- they along with the veterans of every preceding generation will be harmed if the shutdown continues. in brief, in the last six months through 30, september, the veteran's benefits administration reduces the backlog of compensation claims, something we've all been working on and prodding and encouraging them to do better. while they've begun that delivery. 193,000 claims in the backlog reduced in the last roughly 190
7:43 am
days. a 31.5% increase in about a little over six months. since the shutdown began on 1, october, the backlog has stalled. and in fact, it has increased by about 2,000 claims. vba has already furloughed more than 7,800 of its employees, half of whom are veterans. a shutdown directly threatens their ability to eliminate the backlog. we've lost ground we fought hard to take. roughly 1400 veterans a day are now not receiving decisions on their claims due to the end of overtime. if the shutdown does not end in the coming weeks, va will not be able to assure delivery of 1, november, checks to more than 5.18 million beneficiaries. and that's compensation and
7:44 am
pensions and dependents and indemnity compensation, fiduciary, education, and other benefits. including veterans who are 100% disabled, surviving spouses, eligible children, orphaned by the death of their military or veteran parent. tuition and sty pends for over 500,000 veterans and eligible family members will also stop. these are some of the major issues veterans face if the shutdown continues. my written testimony includes details of other negative impacts to our i.t. initiatives. to our national cemetery administration whose employees lay to honor at rest to those who serve this nation. while some have suggested a series of many continuing resolution, or many crs, if you
7:45 am
will, as an approach to meeting our 2014 budgetary responsibilities for funding the government, that's not a solution for veterans or for our nation. the budget request submitted by president obama nearly six months ago is a result of a cooperative effort across all the departments and agencies to produce a budget request that coherently balanced priorities and risk. picking and choosing parts of that would ignore two key drum petes that i've tried to deliver over the past four and a half years. the first is that very little of what we work on in va originates there. much originates in other development. and second, va's care for veterans. by that i mean health care, education, insurance, housing, for both the homeowner and the homeless, does not occur without significant coordination, with
7:46 am
dod, housing and urban development, hhs, social security, treasury, education, labor, the irs, small business administration. and frankly, it is this collaboration among and across the government that allows us to be effective. and i would add to that, we have a fourth mission, i think as the chairman recalls. besides our three administration, we have a fourth in the event of a emergency or national disaster human terry requirements that i must make available our capabilities. so our work with fema and dhs, homeland security, is also part of our day to day responsibilities. these are not ig significant connections for this department. without them, we are less effective in serving veterans, our service members, their families and our survivors. so these are the facts that i present, mr. chairman. at a critical time for veterans,
7:47 am
everyone at va should be focusing on how best to accomplish their missions. so i ask the committee and rest of the congress to help us by resolving this physical impasse now so that va and federal partners on whom we have to rely to do our work can get back to work full-time. fulfilling president lincolns call to care for those. >> let's step away from this. i want to go back to ken fisher of the fisher house. he provides housing for military families desperately in need. has offered to give money to -- grant money to reimburse military families for death benefits and such. so as you're listening to this hearing and the politicians talk, what's going through your mind? >> well, a couple of things, actually. one, not once in all of this and, you know, i work very closely with chairman miller and obviously with the secretary, not once did i hear anything about the death benefits and the resumption of that.
7:48 am
that maybe a dod issue or a congressional issue. but not once did i hear it. two, it points out that, you know, the lack of flow of the information is due to bureaucratic system that quite frankly is just choking. you know, the entire veteran's health care and the way it's atstered, it's choking. this is something that i hope, you know, as this shutdown, you know, comes to an end, hopefully in a timely fashion, that it's addressed. you heard the secretary discuss the backlog in benefits and how that's being addressed. but the one compelling issue is that when a v.e.t., when a serviceman or woman raises their right hand and takes the oath to defend this nation, we as the people also take an oath. that is, one, if they're wounded we will take care of them, whether physical or mental.
7:49 am
and two, if they don't make it home, we'll take care of their families. the fact that the va is going through this issue and it's going to impact the care and service, maybe not on a health base but in other benefits in other ways, it's just unacceptable given the sacrifices that these men and women have already made. >> it's the least we can do to make sure they're taken care of. and thank you for helping the military families, at least in the short-term. hopefully you won't have to do that for much longer. we hope the lawmakers will come to an agreement. and the president will join in too. i know you have to go. thank you for joining me this morning. >> appreciate it. >> let's talk with barbara starr. she's our pentagon reporter. you've been listening to this. both the democratic and the republicans said there's a bill that's already passed the house that would fund this, that would pay for the death benefits, it just has to go to the senate and the senate has to pass it and the president has to sign it.
7:50 am
is it as simple as that? >> reporter: well, there's a lot of washington politics getting caught up in all of this. the fact is the pentagon says they do not have the authority right now to pay these bills and there are several families that clearly are going to need assistance. the wonderful work being done by fisher house. i can also tell you there is a major, major wall street firm that is offering very privately to help. they have asked their name not be use the. the navy and army relief society is offering to help these families. until this actually gets resolved by the politicians in washington on all sides of the aisle, this is going to be a problem. and you hear all of this talk from these people. but we talk to these families. and i have spoken to a number of veterans this week. on issue of this va problem of the veterans not getting their benefits and their checks. i just want to offer two examples. these are wounded veterans that
7:51 am
i know. i spoke to a young man i know this week. he was a veteran of afghanistan. he lost both his legs in afghanistan in an ied blast. he wears two prosthetic legs. he needed to go see his technician to get his legs worked on. he was told his technician was furloughed. politics aside, this young man's technician for his legs, he can't have the appointment. there is another young veteran, 100% disabled. he lives just a few blocks from the courthouse. if if he doesn't get his next va disability check, he doesn't know how he's going to pay his rent, he tells me, because he's been unemployed for four months. these are the real people, these are the real stories. >> and we heard the general say that if this last for another two weeks, that the benefit checks will not go out. >> reporter: right. i wrote it down, it's something
7:52 am
like 5 million checks. and who is involved, it is the recent veterans in afghanistan, those who served in vietnam and corre corree r correia. and many who are elderly, retired, of course, cannot work. may be ill who depend on these disability checks. and they earned them. you know, the government for decades and decades has made the solemn promise to the veterans, you serve, we will take care of you. this is in return for the income they could not earn because of being disabled having serve the in the military. just think of this, this week the nation's oldest living medal of honor recipient, a man 96 years old, mr. oresko passed away this week. this is a young man in the
7:53 am
middle of world war ii who stormed some nazi fortify indications. he had he not passed away this week, would not be gets his disability check. >> we'll continue to follow this part of the story. got to take a break. be right back.
7:54 am
part of the story. could save you fifteen percent or more on car insurance. yep, everybody knows that. well, did you know the ancient pyramids
7:55 am
were actually a mistake? uh-oh. geico. fifteen minutes could save you...well, you know. the house veteran affairs meeting right now talking about the military benefits not being paid because of the partial government shutdown. we'll continue to monitor this hearing and bring you the latest. checking our other top stories. the obama administration is planning to cut military aid to egypt. that's according to u.s. officials. it comes in the wake of the outing of president mohammed morsi. the u.s. provides egypt more than $1 billion in aid every year.
7:56 am
representatives have been charge the with crowding and on instructing. they are given a permit by the national parks service despite the partial government shutdown. the fbi now offering a $25,000 reward for information on a series of attacks on a central arkansas power grid. the fbi believed the incident may be linked to two others. police say the woman who tried to ram her car through a white house barrier did not have a gun had her car. court papers show mayorium carey -- her small daughter was in the car but she was not hurt. tom hanks tells cnn that the man he portrays in a new movie don't want to be called a hero. "captain fill flips" is a story
7:57 am
about the takeover of smally pirates. the real life captain is now a witness in the lawsuit filed by the crew. and they claim it's flawed. hanks told cnn that he would not second-guess the captain. >> the primary motive was get these guys off this ship. but he would never -- he would -- he would never use the use hero in regarded to himself. he said, i was waiting for the he r heroes to show up. let's get a quick check of the market. it's a little better today. >> just when you look away. the green arrows that we saw were fleeting. we're seeing stocks fall yet again. this is really been the trend for the dow. it's been falling for a while, down 11 of the past 14 session.
7:58 am
the dow is off more than 350 points since the government shutdown started, since these worries about what's going to happen to the debt ceiling. so you're seeing a watch and wait pattern for investors as to what washington's next move is. and you're seeing investors get out instead of jumping in. >> all right. alison kosik, i know you're keel e keep your eye on the market throughout the day. thank you for joining me, i'm carol costello. "legal view" with ashleigh banfield after a break.
7:59 am
>> shouldn't we as a body, republican, democratic, no matter who we are, shouldn't we be embarrassed about this?
8:00 am
shouldn't we be ashamed? >> yes, senator mccain, you should all be ashamed of the laughing stock that you and your colleagues have made of america's fiscal affairs. and of one particularly cruelly the government shutdown has afflicted on families already at their lowest. >> what do the american people think when they see that death benefits for those who served and sacrificed in the most honorable way are not even -- their families are not even eligible for death benefits? i'm ashamed. i'm embarrassed. all of us should be. >> hello, everyone. i'm ashleigh banfield. it is october the 9th. welcome to "legal view." while the active troops are getting paid today, the families of the fallen are being told to