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Debt Ceiling Battle Looms; A Revolt Building Against Bill Gates?; New York Highway Brawl

Aired October 2, 2013 - 06:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


KATE BOLDUAN, CNN ANCHOR: Let's get straight to CNN's chief national correspondent John King for more on this.

We've got to talk about the debt ceiling because that's the scarier fight, I think, John.

But, first, where we stand today, Republicans in the House are now moving on this piecemeal approach, passing small spending bills to try to keep some of the agencies open while they continue to fight about the rest of it, I guess. It's hard to understand.

But the president has issued a veto. So, where are things going to go now do you think?

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: Things are nowhere at the moment. You have this back and forth, back and forth.

But to that point, it is, Kate, evidence the Republicans are feel something heat. The president comes out and says what about people trying to help people with housing? What about Veterans Affairs? What about these other programs?

So, Republicans saying we'll fund those programs. We'll the fund the most politically sensitive programs but continue the fight over other things, including, of course, the big one, Obamacare. The Democrats say, no way, we're not going to do that piece by piece. It's not going to happen.

So, we're still in gridlock. We're still in impasse. We're still in no real negotiations. The president, there's talk of him calling everyone down to the White House but we haven't seen that happen just yet.

The Democrats simply aren't going to give the Republicans little pieces at the moment. So, where are we? We're still in the middle the mess.

BOLDUAN: And with that in mind, we -- the country is facing a very real possibility of a dual crisis, the government shutdown if it stays in place, October 17th, we're going to be up against the debt ceiling do the politics change if that's the case, facing this dual crisis?

KING: We change in a number of ways. Economists say that would be the big catastrophe, that the shutdown is a huge problem but a default on the debt ceiling, not raising the government's ability to borrow would be the real disaster.

What do people think about that? We'll show you here. You know, nearly six in 10 Americans say it would be a bad thing if the debt ceiling is not raised, if Congress doesn't give the president, the Treasury Department more authority. Nearly four in 10 say it would be a good thing. Remember that. Nearly four in 10 say, it would be a good thing.

I want to make this point, make it quickly. A majority of Republicans say it would be a good thing not to raise the debt ceiling. So, that will give you, again, the partisan divide.

Kate, this is one of the questions we have now as the shutdown drags on. Who will the public hold responsible? We know at the moment, they're holding Republicans more responsible for the shutdown if we get to not raisin the debt ceiling, again, a majority say it would be the Republicans' fault, not the president's fault.

The politics of this at the moment benefit the president. However, if you get to the point where you still have a shutdown and you're running up the risk of the United States default, the economy would be in peril. And even if the president was winning politically, he'd be losing if that happens.

BOLDUAN: That's why, John, when you look at the first poll that you put up, 56 percent say would be a bad thing. But when you look at 38 percent say it would be a good thing if the debt ceiling was not raised -- does that show you that the messaging has got in the way of actual fact? Every professional economic analyst would say you have to raise the debt ceiling. These are bills that we've already racked up.

KING: This is more evidence, Kate, of divided America, red versus blue and how the dynamic has change, especially since you have these new Tea Party members. The 30 or 40 in the House who were driving this debate who go home to safe Republican districts and who keep saying you have to stop all this spending, the government can't spend more than it takes in. That's the valid political principle.

BOLDUAN: Right.

KING: When it comes to bills the government owes, though, that's dangerous. But this tells you a lot. When a majority of Republicans -- remember, Republicans are going home, most of them to safe Republican districts. So, they're being told -- don't worry about it, you don't have to raise the debt ceiling.

But even here, look at this, here's the sales problem for the president, even among independents, pretty evenly divided on whether or not raising the debt ceiling is a good thing.

So, you have bipartisan consensus among economists that it would be a disaster, a catastrophe. But, politically, you have a divide. More people say raise the debt ceiling and fight the health care debate somewhere else. But there's enough here, if you think of a Republican going home to his district, there's enough here to understand why the Republicans think they're on safe ground dragging this out.

BOLDUAN: Yes, there's a lot of proof when you look at how the districts are drawn of that, John. I'm just going to keep harping on it, though. Cutting spending is one thing, not paying your bills, two totally different conversations that we should all be having right now.

KING: Exactly right.

BOLDUAN: But thank you, at least we see that in the polls. Thanks, John. We'll talk to you soon.

CHRIS CUOMO, CNN ANCHOR: That is the big point that you just made. That people confuse raising the debt ceiling with the government just spending more money.

BOLDUAN: It's not -- I would argue it's not really the people's fault. It's the politician's fault for conflating two issues.

CUOMO: Yes, yes. There's deception going on. You can see why that's dangerous.

We'll be talking about the debt ceiling soon enough, no question about it. Right now, we give you a break.

BOLDUAN: Coming up next on NEW DAY: a doctor accused of pulling a gun in a case of road rage and firing. And guess what? He works at a prison. The disturbing story, coming up.

CUOMO: And is our government smarter than a fourth grader? I know I'm not. This group of kids, they tell us what they think about the shutdown and they're insightful. Take a listen.

(BEGIN VIDEO CLIP)

CUOMO: Nine years old. Why is this so easy for you to figure out? Yes.

UNIDENTIFIED FEMALE: Because we're kids and sometimes kids, we have smarter ideas than grown-ups.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

BOLDUAN: Welcome back to NEW DAY.

It's "Money Time," everyone. Christine Romans is here and there's big news with one of the country's richest men.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: A lot of people talking about this Microsoft story this morning.

It looks like there might be a shareholder uprising against Bill Gates. "Reuters" says three of the top 20 Microsoft investors are lobbying the board to press Gates to step down as Microsoft chairman. Those investors are concerned that he has too much influence at the company and he could clip the wings of any new CEO trying to turn that company around.

They point to Steve Ballmer. Ballmer was a Gates confidant and was under pressure for years to improve the company's performance and share price. Gates is on the committee to search for Ballmer's predecessor. But an interesting court -- boardroom intrigue there.

BOLDUAN: Absolutely. Well, what else can you tell us about all this?

ROMANS: You know, he's a philanthropist hero which makes this interesting. And basically, Microsoft is the second most widely held stock in mutual funds. It hasn't been doing anything for like 10 years. Stock jumped when Steve Ballmer announced he was stepping down as chairman most recently. But for 10 years, the stood has traded sideways. Those big Microsoft shareholders want to see that change.

Bill Gates is the guy in 1995 who said I think everyone will have a computer in their house. People thought, whoa, what? That would never happen. He was so right. So, he really is an icon --

BOLDUAN: Remind me what year that was.

ROMANS: '95.

BOLDUAN: That doesn't seem that long ago.

ROMANS: I know. But he literally changed the world. He has a lot of money, he's been giving that money away, now some of these shareholders, according to "Reuters", this "Reuters" exclusive say, he should step down.

BOLDUAN: All right. We will see, as we say. Thanks, Christine.

ROMANS: You're welcome.

CUOMO: All right. Ready for this?

BOLDUAN: I am ready.

CUOMO: A special treat for you. The government shutdown out of the mouths of babes. You keep hearing how people think Congress is acting like children. So, we decided to test the idea and talk to actual kids and see how they would handle the situation.

Turns out the fourth graders at the Immaculate Conception School in Queens, if they were in D.C., we would be better off.

(BEGIN VIDEOTAPE)

CUOMO: Karl, what do you know about the shutdown?

KARL HODGE, IMMACULATE CONCEPTION ELEMENTARY SCHOOL: They're going to shut down the government because of some of the government people.

CUOMO: When I say shut down the government, what does that mean? UNIDENTIFIED GIRL: Like the government is going to stop work for a while.

CUOMO: Does that sound scary?

UNIDENTIFIED GIRL: Yes.

CUOMO: Now, the big things stay, the people who protect us, they stay. But a lot of people who work for the government wind up not getting paid until they re-open the government. How does that sound?

UNIDENTIFIED BOY: Not good.

UNIDENTIFIED GIRL: Not that good.

CUOMO: Jocelyn, let me ask you something. When you were being taught how to work with somebody else in a situation, what are you taught? What are you supposed to do?

JOCELYN HARRIS, IMMACULATE CONCEPTION ELEMENTARY SCHOOL: You're supposed to share the things you do and agree and compromise when you have different agreements.

CUOMO: So, in Congress, they didn't do it. They said you want to do one thing, I want to do another. We can't agree. So let's stop the government and not pay anybody and not do lots of things that we're supposed to do.

Who likes that solution?

Ooh, double thumbs -- double thumbs down in the back row.

Oh, I forgot to mention something. The members of Congress, when the government is shut down, and they send people home to their families with no pay, they still get paid.

HODGE: How?

UNIDENTIFIED GIRL: Do they do another job?

CUOMO: No, no, they're not doing any job, but they still get paid.

Jocelyn, two thumbs down. Does that sound right?

HARRIS: No, because if one person gets paid and the other person doesn't, that's not fair to the people that don't get paid.

CUOMO: What should I do with the money if I do get paid. Let's say the law says I get paid. What should I do with my money, Prabhight (ph)?

PRABHIGT KAUR, IMMACULATE CONCEPTION ELEMENTARY SCHOOL: Divide it into half and give it to everybody.

CUOMO: Divide it into half and give it to everybody.

HODGE: You get money for being in politics?

CUOMO: I know. They pay you to go down there and have all this fun. Who knew?

HODGE: Can I run right now?

CUOMO: How old are you?

HODGE: Nine.

CUOMO: If it's available, if I can swing it, would you want to run? What would you want to do, what would be your platform? Why should we vote for Karl?

HODGE: Because I'll make the world better.

CUOMO: Oh, that's strong. You're all Congress members right now, OK? Nicole and Jocelyn while friends up until this day, now disagree. They do not like what to do.

How do we solve it?

Jonathan, Prabhight does not like your ideas. She thinks they're dumb. And, in fact, you're dumb, too, for having those ideas.

JONATHAN ST. URBAIN, IMMACULATE CONCEPTION ELEMENTARY SCHOOL: We could compromise like Jocelyn said and we could agree somehow.

CUOMO: Karl, what do you do if you're president and Congress won't compromise?

HODGE: I'll tell them -- I'll tell them, get along just now because people are going to be losing their jobs.

CUOMO: What's the president supposed to tell Congress? Nicole?

NICOLE: The president is supposed to tell congress that you better get back to what you're supposed to do.

CUOMO: What if they say, no?

UNIDENTIFIED BOY: Then the president fires them.

CUOMO: He can't. Only the voters can. He's not a king. Who's going to fix it?

Nicole, how do we fix it?

NICOLE: You can fix it by if the government is shut down, then -- that's a very hard one.

CUOMO: Right. How do we settle things that we don't agree on, Jocelyn?

HARRIS: You should do the right thing, not the wrong thing. You should at least give the effort to agree with somebody instead of acting like a bunch of babies. You should act like adults, because you are, and agree with people.

CUOMO: Nine years old. Why is this so easy for you to figure out? Yes?

NICOLE: Because we're kids and sometimes kids, we have smarter ideas than grown-ups.

(END VIDEOTAPE)

BOLDUAN: I mean, we think we have our answers, folks.

CUOMO: Karl for Congress.

BOLDUAN: I was wondering what you're drawing over there, Michaela.

CUOMO: He was -- you know what? This guy has a great future, you know why? He's good looking and he looks at you with a straight face. That's about all you need.

MICHAELA PEREIRA, CNN ANCHOR: Can I do that?

CUOMO: He's too honest right now.

PEREIRA: Work on that.

BOLDUAN: Lose that over time and you'll do well.

(CROSSTALK)

CUOMO: When I talked to the kids, they look up to public servants. This is something that they aspire to do someday. They see that there's a heroism involved, and we forget that. You know, even in the media, we get all caught up in the jaundice and what they're doing wrong. These kids look at what we do.

We are the example. It's true every day and in every way. And it really set me back a little bit. Maybe if you think about it, how much I'd play with what's so easy to play with what's going on in D.C. But it was great to talk to them. And they were moved. That kid, Jocelyn, she wasn't, you know, just being clever. She was upset that they're not getting along.

(CROSSTALK)

BOLDUAN: -- make the effort to compromise, she said. Understand and try to agree.

CUOMO: And a lot of families in that school in Queens, you know, they're the kind of families where if the economy gets shaky, it hits them fast.

BOLDUAN: Sure it does.

CUOMO: So, these kids could be living the pain. And it was great to talk to them.

PEREIRA: I love that a nine-year-old is really comfortable with the word compromise. That's really good.

CUOMO: Right?

PEREIRA: Really good.

BOLDUAN: Hope she doesn't lose that.

(CROSSTALK)

PEREIRA: Carl for Congress. I stand by -- Carl for Congress.

CUOMO: Carl for -- he may be too good looking.

BOLDUAN: #carlforcongress.

CUOMO: He might be too good looking. Unelectable. You're unelectably attractive, Carl.

(LAUGHTER)

PEREIRA: Is that why you went for TV?

CUOMO: That's right. That's why I'm here.

Coming up on NEW DAY --

(CROSSTALK)

CUOMO: I'm changing topics. Thanks to Immaculate Conception.

All Right. Remember this story? Motorcycles versus SUV on a busy New York City street. The driver beaten up. There are new developments this morning. Arrests, a man in the hospital paralyzed, and a chance the man behind the wheel of the SUV could face charges as well.

PEREIRA: And you guys remember when we showed you her side of the story, a woman saying I quit, this fantastic video dance-off? Oh, wait. Oh, wait. Her former employer is making it clear not everyone feels that way. In fact, it's our "Must-See Moment," coming up.

CUOMO: Zombie dance. That's tough. Zombie dance.

(COMMERCIAL BREAK)

CUOMO: New details this morning on a highway battle royal in New York. Two men arrested after the bizarre confrontation that was caught on tape. You remember, the swarm of motorcyclists surrounding an SUV. Inside, a couple and their two-year-old daughter. It ends with one man brutally beating, another in critical condition. Now, police want to know how it started.

Susan Candiotti has the story for us. Susan, it does seem that it is developing. It's not as simple as it was on video.

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: It's moving forward, but the case still has so many twists and turns. One man violently attack, another might be paralyzed for life, two men now under arrest, more witnesses saw it, because of a biker ride gone terribly wrong.

(BEGIN VIDEOTAPE)

CANDIOTTI (voice-over): Two motorcyclists charged by police in connection with a disturbing incident caught on tape along a Manhattan Highway over the weekend that ended when a motorcycle gang dragged a New York man from his vehicle and attacked him while his wife and baby looked on.

Police say the driver of the SUV called 911 several times before and after two o'clock Sunday reporting a gang of motorcyclists driving erratically. This biker, Christopher Cruz (ph), is under arrest for several charges, including reckless endangerment after allegedly causing an SUV to hit him. It set off a violent chain of events ending in a frightening attack.

Forty-two-year-old Allen Edwards (ph), the helmeted man seen on the right pounding on an SUV turned himself in to police Tuesday. Edwards is charged with reckless endangerment, criminal mischief, and menacing. When the video cuts off, police say the driver is pulled out and assaulted. But he's not the only victim of the dramatic ordeal that played out on New York City's west side highway.

Watch what happens earlier when the SUV was still trying to get away from bikers. Edwin Mieses (ph) was dragged underneath the SUV.

YOLANDA SANTIAGO, INJURED BIKER'S MOTHER: All of his ribs fractured. His lungs are so badly bruised that he's still on the ventilator.

CANDIOTTI: Mieses seen here in a Facebook page dedicated to him is now in critical condition.

DAYANA MIESES, INJURED BIKER'S WIFE: My husband got off his bike to help the guy. And, whatever he did, he got scared, he went, peeled off, and he paralyzed my husband on the way.

CANDIOTTI: The driver of the SUV has not been charged, but NYPD commissioner, Ray Kelly isn't ruling it out.

RAY KELLY, COMMISSIONER NYPD: It depends on whether or not the vehicle was being attacked, whether or not you think you're being attack, whether or not your wife and child were in the car. We have to look at the brutality of the circumstances and that's what we're doing.

(END VIDEOTAPE)

CANDIOTTI (on-camera): And while police are doing that, still sorting things out, a debate going on in social media, relatives of the biker who's in critical condition saying they want it known he's a victim, too. Others weighing in, the bikers put themselves at risk and the driver of that SUV was fully justified in trying to protect his family. Case not over yet.

BOLDUAN: This is clearly a case where the police should investigate before anyone comes to any conclusion. CANDIOTTI: Exactly.

BOLDUAN: Because we don't know what happened there.

CUOMO: Absolutely the case --

PEREIRA: And we haven't seen the whole video either.

CUOMO: That's exactly right. It cuts off. You know, of course, it cuts off in a very suggestive moment, because no other man has taken out of the car. You know that he knew the kid was in the back. They go to open the back door which is where his kid is. All these things are going to have go in favor. I'm sure Ray Kelly, commissioner (ph) of New York City's Police Department knows they have to get this right.

BOLDUAN: Exactly. Thanks, Susan.

PEREIRA: All right. Time for our "Must-See Moment" today, because we need it after that. Remember we showed you earlier this week, a video of a woman in Taiwan quitting her job from an animation company in unique style. Well, guess what, turnabout is their play (ph). Check this out. Her ex-employers now responded. They have posted their own video and its tag line says "we're hiring."

Set to the very same Kanye West song. They actually point out why employees like working there. A roof top pool. A lot of happy people, dancing on the tables. So there's their rebuttal. Turnabout is fair play.

CUOMO: Sounds like this place. We should do a video.

PEREIRA: We should do our video. Which one are you going to be, the guy by the pool

CUOMO: I would be the guy holding the camera.

(LAUGHTER)

BOLDUAN: Right. Exactly. The guy who comes up with the idea --

CUOMO: And the moves.

(CROSSTALK)

BOLDUAN: That was a very clever move.

PEREIRA: It's been enjoyable to watch how all this play out.

CUOMO: That was a good counter.

BOLDUAN: And on that, Susan Candiotti is going to dance us to break.

(LAUGHTER)

CANDIOTTI: I'm looking for that roof top pool. BOLDUAN: Exactly.

(LAUGHTER)

CUOMO: All right. We're going to take a break here. Coming up on NEW DAY, are you angry about the government shutdown? Rhetorical question. A lot of people are. And the pain is being felt across the country. Cancer patients being told to wait before they can try experimental treatments. Yes. We have the latest.

BOLDUAN: And the shocking case of road rage in Kentucky. A man pulling a gun on another driver and you won't believe who police say did it.

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

REP. JOHN BOEHNER, (R) HOUSE SPEAKER: My goodness, they won't even sit down and have a discussion about this.

CUOMO: The blame game. Will day two be any different as the president stands firm and Rpeublicans scramble for a new strategy? One thing is for sure, the shutdown effects are real. FAA Safety Inspectors now taken off the job. We have the latest.

BOLDUAN: Breaking overnight. A U.S. airport evacuated, planes grounded, the bomb squad called in, and a destructive package found. The investigation this morning.

PEREIRA: Extreme road rage. Look at this video. A highway confrontation that turned dangerous. Imagine encountering this on your drive.

CUOMO: Your NEW DAY starts right now.

ANNOUNCER: What you need to know --

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: One faction of one party shut down major parts of the government all because they didn't like one law.

ANNOUNCER: What you just have to see --

(MUSIC PLAYING)

ANNOUNCER: This is NEW DAY with Chris Cuomo, Kate Bolduan, and Michaela Pereira.

(END VIDEOTAPE)

CUOMO: Good morning. Welcome back to NEW DAY. It's Wednesday, Hump Day, October 2nd, seven o'clock in the east.

Coming up this hour, bad case of the hiccups for Obamacare. An important component of the new health care law got off to a glitchy start, but did a good night's sleep help? We'll take a look at that.

Plus, have you seen this video? Close your eyes if you're scared of heights and crazy things. A man flying through a mountain gap on a wing suit and a prayer.