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tv   CNN Newsroom  CNN  August 9, 2011 8:00am-10:00am PDT

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oil reserves in the world. a large part of that is oil sands. this resource has the ability to create hundreds of thousands of jobs. at our kearl project in canada, we'll be able to produce these oil sands with the same emissions as many other oils and that's a huge breakthrough. that's good for our country's energy security and our economy. live from studio 7 i'm suzanne malveaux. want to get you up to speed. wall streets mojo is back.
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at least for the moment. stocks bounced back in early trading today, after monday's 634-point plunge. right now, dow blue chips are up by 201 points. investors are psyched over today's fed meeting, and there's speculation it might announce a new stimulus. to boost the economy. president obama sits down with treasury secretary timothy geithner. that's happening this afternoon. they're going to size out the new market turmoil that is fearing -- that is fully feeding fear of double-dip recession. the president is promising to help a special congressional commission find a long-term fix for the finances. >> i intend to present my own recommendations over the coming weeks, on how we should proceed. and that committee will have this administration's full cooperation. and i assure you, we will stay on it until we get the job done. >> so, congress has to appoint
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the commission by next tuesday. that is just a week from today. the six democrats, and six republicans will have until november 23rd to come up with a plan. well, london will practically triple the number of police officers on the streets tonight. to combat rioting. violence spread to new neighborhoods today, even to other cities. it started saturday after a police shooting. prime minister david cameron cut short his italian vacation. he says that mob anger has transformed into criminality, pure and simple. the bodies of 30 american troops killed in afghanistan have arrived at dover air force base in delaware. they died when the taliban shot down their helicopter over the weekend. eight afghans killed in the fiery crash were flown to dover, as well, so their remains can be identified.
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nato rains bombs on libya's capital overnight. the heaviest attack in a month. explosions lit up tripoli's night sky for the better part of an hour. nato's war jets appear to have hit a chemical plant, which is burning east of the city. two brothers, and their sister, are on the run from the law today. >> oh. >> the siblings are accused of taking shots at a florida police officer during a high-speed chase. five hours later, investigators say the trio robbed a georgia bank. their mother, who didn't want to be identified, pleaded for her children to give up. >> only mom knows what good people you are inside. please prove me right and everybody wrong by doing the right thing now, and turning yourselves in. >> in san angelo, texas, today,
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closing statements are scheduled in the penalty phase of warren jeffs' trial. now, the jury is going to decide a sentence for the polygamous sect leader. he could go to prison for the rest of his life. last week jurors convicted jeffs of sexually assaulting two children. swimmer diana nyad arrived in key west, florida, this morning. but not the way she had hoped. nyad at 61 tried to become the first person to swim from cuba to florida without a shark cage. but about halfway through, the three-day swim, fighting strong currents, her body ran out of steam. president obama was supposed to be speaking in virginia right now about fuel efficiency standards. but the white house canceled the event just a short time ago. the president is under increasing pressure to come up with a plan to fix the country's finances. white house correspondent brianna keilar, she's joining us live. first of all, do we know why the
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president canceled his event? >> we don't know why, suzanne. the white house isn't saying. there is speculation, not surprisingly, that the president may be going to dover air force base, where the remains of those 30 u.s. troops killed last week in afghanistan will be coming in. as you mentioned, he was supposed to be in virginia, discussing new fuel efficiency standards for commercial vehicles, for trucks and buses. that was completely cleared off of the schedule a couple hours ago, and there -- as well as the briefing by white house press secretary jay carney. but there hasn't been an update to explain why in >> brianna, we know that he does have on his schedule that he's going to be meeting with his treasury secretary, obviously looking at the economic situation. what are some of the specific proposals that he is going to be putting on the table to try to jump-start this economy? >> you know, he's been talking about some of his proposals for awhile, suzanne. i think perhaps it's not reassuring to the markets. these are proposals that take time. they certainly are more slower moving than the panic that we've
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seen on wall street, and the president has long said, the white house has long said, that when it comes to ratings agencies and the markets, they can't really control those things and focus on the things they can. first off on the topic of deficit reduction, this was a new thing we heard yesterday from the president, that he'll be making recommendations to that bipartisan congressional committee that's looking at deficit reduction. he'll be making recommendations on entitlement reform, and also tax reform which, of course, democrats would hope would field more in the way of taxes. and then on the issue of jobs, suzanne, his strategy for some time now has been pretty well known. taking a payroll tax, holiday and extending that. unemployment benefits, extending those. the free trade deals that are before congress, as well as infrastructure spending, which, as you can imagine, is something that there would be some difficulty with in congress. because there isn't an appetite for spending. certainly, republicans would push back on that, and have pushed back on that, suzanne. >> all right. brianna keilar, thank you very
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much. brianna from the white house. stocks try to rebound from yesterday's nosedive. they're reacting to the credit downgrade. the dow opened higher, and is trading in positive territory. that is happening right now. alison kosik at the new york stock exchange. tell us what's going on. >> suzanne, it's nice to see some green arrows for a change. but the volatility is still here. we are still in the green. the dow up 178 points. but we did see it go as high as 243. still once again holding onto a good portion of those gains. a good indicator of how investors are feeling is watching how they're trading. and we are seeing gold come off its intraday highs. it's encouraging because gold is often seen as an investment of last resort. as a safe haven. it looks like investors are kind of taking some of their money out of gold and putting it in other things like stocks. one other indicator is the vix. the vix is sharply lower. that kind of gauges the fear and volatility in the marketplace. that's sharply lower and shows
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that things are much calmer than they were yesterday, to say the least. >> and alison, there's a lot of volatility as you mentioned, day to day, even hour to hour. are traders expecting, what do they think is going to happen over the long-term? >> traders are telling me that they expect to see, believe it or not, more selling, unfortunately. because they really want to see the economy improve. they want to see these indicators like gdp and manufacturing and housing and jobs improve to really get these gains to really stick. don't be surprised if you see more selling in the long-term, until we get some good news. now one thing that wall street is definitely watching today is that fed meeting coming up at 2:15. wall street is going to be watching, and trying to listen to exactly what fed chief ben bernanke says, what the fed could do, possibly even put a new stimulus package in place to give a boost to the economy. suzanne? >> we'll be watching very closely. what the fed does today. alison kosik, thank you very much. when the market turns, it's easy
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to get caught up in all of these numbers, today we want to hear from you. your stocks, your credit cards, your mortgage, student loans, they could all be impacted by this downturn. so we want to help. send me your money questions at facebook.com/suzannecnn. or twitter @suzanne malveaux. and we're going to go to the experts to get some answers. >> at the end of the day, many americans are too busy worrying about their own credit rating to care about the aaa credit rating downgrade for the united states. we wake up every single day, and our lives aren't seeming to change, except for many of us, our situation is getting worse, as relates to jobs, foreclosures. aaa credit rating since 1917, yet we still had a great recession. hi there!
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here's your chance to talk back on one of the big stories of the day. today's question in politics, would term limits actually make a difference. carol costello joins us from work. hey, carol. >> hi, suzanne. term limits, oh, hot topic these days. voters are so mad at politicians right now they're saying throw the bums out. in a "usa today"/gol up poll only 24% say most members of congress deserve re-election. that is the lowest percentage in 20 years. but hang on, 56% of those polled think they're own representative deserves another term. in other words, go ahead, throw all the bums out, except mine. well, that's exactly what they're trying to do in wisconsin. in a recall election, voters are deciding whether to kick out six republican state lawmakers who supported governor scott walker's anti-union legislation. i know what you're thinking. if only we could recall the president, or the house speaker,
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et cetera, et cetera. but we can't. but what about term limits? for example, house members served two years and can get re-elected forever. it means they're constantly campaigning, and maybe voting not for the good of the country, but to prolong their careers, so why not limit the number of terms lawmakers serve? of course that would be admitting that you as a voter made an unwise decision. but i digress. university of virginia professor actually thinks you need experienced people in congress. they know how to work the system, and don't laugh, they know how to deal with those high powered lobbyists. he says a good compromise might be to extend house members terms from two to three years and allow them to serve a maximum of 12 years. so, the talkback question today, in the world of politics, would term limits make a difference? facebook.com/carolcnn. fab.com/carolcnn. >> thank you, carol. we are watching the markets, as
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stocks rebound from yesterday's nose dive. the dow has been in positive territory since the opening bell. right now it is up by 128 points or so. there are endless ways to interpret what is going on in the markets right now. but as an investor there really are only three things you can do to react. buy, sell, or hold. when some folks see the markets tumble they see it as a chance to pick up some good deals on the cheap. so they buy. for others a roller coaster market is too unpredictable. they want out. so they sell. and then there's the zen masters, the folks who don't worry about downturns and upturns but try to think about their investments in the long-term, so they hold. i'm joined now by clyde anderson, a financial expert and the author of "change your mind, change your life." clyde. you've got a lot to work with here, obviously. >> i love that zen master. >> if we could all just be the zen master, right? but i guess it depends on how much you put in the market. >> yes. >> how old are you.
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how much time you have left investing. >> exactly. risk is different for everyone. your risk may be different than mine based on their age and when they want to retire. >> i want to bring up some scenarios. various ones so you can help our audience out here. this is betty, she's starting a family, paging off some student loans, she's thinking about settling in her first house. what should her reaction be to the markets right now? >> she should be open to the market, i think buying is a good idea right now. you only were taught to buy low, sell high. the market has been down right now. we're watching it turn around a little bit. this is the time to buy. if you're in this area, buy. >> check out sam. sam is in his 40s. he's working, thinking about selling the starter home, buying something bigger, has a little bit of credit card debt, but he's still working it out. should he buy, sell or hold? >> i think sam should be in a position where he can buy, as well. the thing with sam, he needs to pay off the credit card debt, as well, to make sure he's not paying so much interest over there and earning it on the
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stock. it will cancel out. if you're paying 12% on a credit card and only earning 6% on a stock you need to get rid of that 12% you're paying out. >> and freddy. here's freddy. so freddy, he's baby boomer, in his 50s. his kids are going to college, his parents are getting a little bit older, need more help, he's starting to feel locked in to his career at this point. so what does he do? >> i think he's in a hold position. he needs to hold but also think about selling as well. the combination. sell with caution. make sure you know what you have, but also look at the big picture and diversify. don't be too invested in bonds or too much invested in stocks, as well. >> finally, jones, jones is a little bit older. she's in her 60s. thinking about retirement. we all want to be thinking about retirement. the kids are out on their own, she wants to downsize her house. >> she needs to make sure she has enough money to live off of for the rest of her life and is she really willing to take this risk, have sleepless nights of
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worrying what the market is doing. she may want to go into sell now and get 15e6er investments and fixed assets that she can rely on. >> she should buy, sell -- >> she should sell. she should sell, make sure she has enough to outlive inflation, as well. rate of inflation is 3.5%. you want to have investments that are at least outearning that. >> clyde, you've been great. >> we're going to keep you around to answer some questions, as well. a lot of folks have questions about their finances. thanks, clyde. remember we're also going to answer your personal questions about the market. what it means for you. send me your questions at facebook.com/suzannecnn. or twitter, and we're going to bring back clyde for some of those answers. .
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checking stories from our affiliates across the country. an outburst in an atlanta courtroom startles the judge and everyone else. just take a listen. >> i am going to sentence you for murder to life in prison. >> no! no! no! i'll never see my son again! no! >> michelle nichols, visibly upset after the judge sentenced her son's killer to life with parole. her 19-year-old son was murdered over his smartphone outside a train station last year. smith pleaded guilty and could get out in 30 years. plans to stop random attacks of mobs by young people philadelphia's mayor put kids on a curfew. children under 13 have to be home by 10:00 p.m., teenagers by midnight. the weekend curfew is even stricter in some parts of the city, 9:00 p.m. for everyone under 1.
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and in the middle of a devastating drought here's a lake in central texas that is not drying out. that is because the city of taylor is pumping its excess drinking water into it to save the wildlife. and we want to go to rob marciano, who is dealing with all of this extreme heat, and are we going to cool down at all? >> well, you know, we're almost done with august. that would help. >> as far as the heat is concerned the other town that's dealing with heat-related drought is kemp, texas, which doesn't have water because of the drought. and, because their pipes are so stressed and old, that they've got a leak. so what little water they have, they're not being able to tap, and so, this has happened before in years past. now they're breaking out the bottled water. so the hits just keep on coming for our friends in texas. and this is the latest. oklahoma and texas was the warmest month on record with the month of july. and for the u.s., it was the
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fourth hottest july on record. averaging 77 degrees across the country for a 24-hour period. that means we were not warming down -- or cooling down very much during the nighttime hours. that really is what puts the most stress on the body. dallas, oklahoma city, east to parts of southwestern arkansas, heat advisories again today. we're going to see temperatures that will rival what we saw yesterday. which is this. triple digit stuff again. childress, texas, 110, augusta georgia, 103. savannah even towards the coastline. you can't even get a little bit of a respite. a little bit of a sea breeze. today in dallas, 108 today. and we are well over 30 days. if we get to saturday that makes it 43 or 42 days in a row. that would break the record of 100 degree days in a row. we're fairly confident that's going to happen. we'll have at least 100-plus going into through friday potentially through saturday, as well. the rest of the country, at least the northern half is seeing a little bit of relief.
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and this will sneak down to the south and east. it won't really catch a big part of texas. i'm sorry to say that a lot of texas will still stay where their heat is right now. the cool air will begin to drift south and east and we're seeing thunderstorms pop up from this. this will cause travel delays across i-95 and some of the new york metro areas and boston metropolitan airports as well. short answer to your question is, october for everybody, but some people are getting some relief, but dallas at this and north texas especially can't catch a break. >> all right. a little bit more heat. sorry. thanks, rob. a very special story here. 61-year-old diana nyad attempted to be the first person to swim from cuba to key west, florida, without a shark cage. she was in the water for 29 hours. she made it almost halfway, but had to abandon her efforts after experiencing some shoulder pains. she has an asthma problem. she had to abandon her journey. but she is with us live from key west. she has gotten in front of the
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camera there, and our dr. sanjay gupta, he's on the phone from kenya. he's been following this story, as well. diana, thank you so much for taking the time. i know you've -- you've been exhausted. this has been an exhaustive journey for you but certainly a dream. how are you doing? how are you feeling? >> hi suzanne. thanks so much for having me. i'd be lying to say that i'm not deeply, deeply disappointed. this was a big dream. not just over the last two years, but for some 30 years ago when i tried it. and i've just had this vision of walking up on that floor shore for so long. and that swim was in me, but the conditions that we met. i suffered a bad, bad asthma bout for eleven hours. never in my life had asthma in the water. and yesterday i started doing 30, 40 strokes, and was so depleted of oxygen, i had to roll over on my back and gasp for oxygen for three or four minutes, so i was limping, and limping along. and i thought, you know what?
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it's not going to be a pretty finish. i can't be the swimmer i am today because of what i'm going through. but i'll tell you another thing. i was a person i can be proud of. our whole team. we dug down and found some courage. we tried every imaginable resource we could. my doctor would be in the water with me, giving me 40 to 50 puffs of an inhaler. using oxygen, trying different medicines to open up the lungs. i've never had a right shoulder problem in my life. strong as a bull. yesterday, three hours into it, something impinged and i was in excruciating pain in the right shoulder. the weather was supposed to be like a glass, and it wasn't. it whipped up, into two, three, four foot waves. so it wasn't the right day. but i'll tell you something, we were the best we could be. >> well, we are certainly very proud, and congratulations for making it as long as you did. at what point, diana, did you know that you were going to have to give this up? >> it was about midnight last
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night. you know, they always use that phrase, suzanne, mind over matter. and this sport proves it. you push beyond what the human limit is, all the time. but last night at midnight, i was trembling, the eleven hours of asthma had taken so much from my body, that i was absolutely spent. and when i found out that it would be not only to swim at midnight through the rest of the night, through this entire day, through this entire night coming up, i just knew that it wasn't mind over matter anymore, i was absolutely spent. >> and, diana, how was it that you actually made it as far as you did? you spent 29 hours in the water. >> well, as i say, i think it's a tribute to, you know, the courage it takes in this sport. you don't give up easily. i was doing the breaststroke. i've never breaststroked anywhere at any time. i was desperately thinking, i'm
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going to finish this thing doing the dog paddle. that's what's going to happen here, and i think if there had just been an hour to go, i might have desperately found that hour. but not 24 more hours. it's not possible. >> diana, i want to bring in my colleague dr. sanjay gupta, who you know well, he's been traveling, he's been following your training throughout at least a year or so. i'm sure you have a few questions. >> yeah. i want to echo your sentiments, suzanne, just incredibly inspiring what diana has accomplished. and we spoke on the phone a little bit earlier, and definitely just wanted to say that again. you know, how many people she inspired around the world, including myself. one of the things, diana, i wonder if you could spend a minute talking about the preparation for this swim. and you mention that in two years, and the planning, but you know, we had a chance, suzanne, to follow diana on a 24-hour training swim. this woman swims 24 hours for a training swim, just think about that.
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but also, just in all the conditions that needed to be perfect in terms of weather, in terms of currents, in terms of the water temperature, everything for this to work, diana. >> well, sanjay, you know, the training, i think it's incomparable. i respect all sports. i've been a sports journalist for 30 years. so we're talking about people climbing the biggest peaks, everest, when you're talking about running across the gobi desert, all the endurance sports especially i have respect for. but i dare say that even those athletes would tell you that marathon swimming, there's nothing more grueling. when you're going out for 12, 13, 14, swims, you mentioned the 24-hour swim last summer, it's a test of mind and body is just -- it's robust beyond belief. so to put in all that time, and not come up with the end prize, i have to say it's a bitter pill to swallow. >> diana -- >> and what about the -- the --
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>> go ahead, sanjay. >> go ahead, suzanne. >> i just wanted to -- >> -- the conditions, diana, you mentioned you needed to have ideal weather conditions for it really to work. can you explain for one second, what that means? it's not simply that the water has to be warm enough, it has to be a nice day outside. there are several things at play here, right? >> oh, yeah, many things at play. you don't beat mother nature. it's like when you're at the penultimate stage of getting the top of everest and big storms are coming in, you don't say well, my schedule just doesn't match that, i'm going to go anyway. you don't do it. here there's a condition in the florida straits between cuba and florida they call the doldrums. and that means that you have not a whisper of wind and that's what i was looking for and waiting for. the prediction we had was not quite the doldrums but very, very light. under 5 knots, which is doable. and that just didn't happen. that prediction was wrong. we were out there, just slapping around, and with my shoulder
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issue, it just exacerbated it. it was a -- those 30 hours i dare say were tougher than had i done the swim entirely in 60 hours in perfect conditions. >> diana, this is suzanne again. just two quick questions for you. first, will you try again? do you think you have it in you to try one more time? and secondly, what is the message to so many people who've been following your journey? >> you know, suzanne, i think the message is, be your best self. i can look back at those 30 hours, of yesterday, and i can say i couldn't be my best swimmer. the asthma, the shoulder, the weather conditions. i was just not grinding along the surface like i can do. and that hurt me. that hurt my pride, and it hurt my distance made. but i was the best person i could be. i dug down. i dug deep. and i think that's the message. you live your life with passion, you know. you show your will, you feel proud of yourself when you go to bed at night. you don't have to do epic things.
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just raise your children well. whatever you're doing. do your job well. and when you ask would i do it again, you know, i really think that this was my time. this was the fairy tale this year. all these people around the world virtually who dived into this with me, and to train again, try to bring in the people all again, i think i'm going to have to go to my grave without swimming from cuba to florida. >> diana, we're very proud of you. there are a lot of people following your journey and we thank you so much for that message of inspiration, and your journey, as well. thank you very much. we're going to have more -- >> it's my pleasure. and i -- suzanne, if i could say also while sanjay is still with us, you know, cnn, both documentary film unit, and cnn headline news side have been with us for two years now. and not just been covering our event, but incredibly helpful, producer matt sloane, producer jennifer hyde, anything we need. they're really part of the team.
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sanjay, as well. and i know when the swim started sanjay was very disappointed he couldn't be down here and be part of it. but look at the world news that he covers, and to bring an important event like the sorrow that's going on in somalia right now, it doesn't compare. so we miss you sanjay, but you just keep doing your good work over there. >> all right. diana, thank you. >> diana, thanks so much. feel the same way about you. recover well, diana. we'll talk soon. >> you got it, buddy. bye, suzanne. >> all right, bye. thank you very much. sanjay, as well. we're very proud of you, as well. we'll have more of nyad's story on an upcoming cnn special, diana nyad, extreme dream, premiering saturday, september 17th at 8:00 p.m. eastern. >> weather update brought to you by -- [ woman ] jogging stroller. you've been stuck in the garage while i took refuge from the pollen that made me sneeze.
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the dow has been in positive territory since the opening bell. right now it is up, well, 180 points or so. so we're keeping a close eye on that. the same goes, of course, if you can't stand the heat get out of the kitchen. well, if you can't stand the volatility might want to stay out of the stock market. cnn's christine romans joins us from new york with that part of the story. christine, if you can, help us put into perspective what we saw yesterday, in that huge plunge in the stock market. >> i tell you, it felt pretty horrible, didn't it? it felt as though it was the worst day we've ever seen. look, the dow was down some 600 points. and we've been there before. and we'll be there again. investors lost a trillion dollars in stocks. that's according to the wilshire 5,000. the broadest index of u.s. stocks. standard & poor's downgrade of u.s. debt, overall economic concern, worries about the debt crisis in europe, they all had wall street in the vice grip yesterday. let's look at the dow joins industrials, down 634 points yesterday. that's the sixth biggest point
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drop of all time. the sixth biggest of all time. and think, the dow index has been around since 1896. but the number of points really isn't as important as the percentage drop. so let's look at that. the dow lost 5.55% of its value yesterday. that's a lot but doesn't even rank in the top 20 worst days for percentage drops for the dow joins industrial average. look at all of them there. on black thursday in 1987, the dow lost 22% in just one day. still, all of the indexes took a beating yesterday. the s&p 500, that's the best indicator for what's in your 401(k). that lost about 6.5%. every single stock on the s&p 500 ended lower. but financial stocks were among the worst hit. bank of america dropped a staggering 20%. citigroup, morgan stanley both dropped more than 15%. 15%, 14%. stocks are now down overall 15% in just a few weeks. but here's some more perspective, the s&p 500, down 15% but it's up 64% from the
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lows back in 2009. i know it's a lot of numbers, but it just puts it in perspective for you that it's been a big, fierce drop, but when you stretch it out we've seen big moves like this before. >> so i think there's some good news in there somewhere i'm trying to get out of this. i know we all have lost money here. but i -- >> the good news is you've got to have perspective. always have perspective. because you shouldn't be making move. every financial expert says don't make moves after something like that has happened for crying out loud because you've missed the move. you need to be taking regular looks at your portfolio, once every quarter, rebalance your portfolio, and then you don't have to worry about stuff like that. >> and christine i know the federal reserve is meeting within a couple hours or so. is there anything that they can do to calm investors? >> it's going to be important what they say, suzanne. whether they're willing to step in and give more stimulus, the way the fed can staple late the economy. and what the fed can really do. they've kept interest rates at zero percent since 2008. that's basically free money out
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there trying to get the money going. they had a bond repurchase program. they did it twice. and that faded out in june. what could they possibly say they're going to do extra? markets want to see the fed is willing to step in if need be. we're in a rut. will the rut become a recession? what is the fed going to do about it? that's what the market wants to see. >> okay, all right. christine romans, thank you so much. we'll be watching very closely this afternoon. appreciate it. there is still time to get your money questions answered. we're going to tell you what the news on wall street means for you. if you have a question about your car payment, credit cards, student loan, send it to me at facebook.com/suzannecnn. or twitter, and we'll go to the experts for sound, financial advise to see you through this downturn. one log in lets you monitor all of your balances and transfer between accounts, so your money can move as fast as you do. check out your portfolio, track the market with live updates. and execute trades anywhere and anytime
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so all morning long you've been sending us your questions about the market and what it means for you.
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clyde anderson, he joins us again to give you some answers here. clyde, we spent the morning with our team going out and getting some folks to come up with questions about concerns that they have. i want to go to the first person that we talked to. >> my name is julianne from tallahassee, florida. this is my daughter jody. she's 8 years old. my question is what do we do about college savings accounts? is it safe to start one of those accounts with the market in such volatile shape? or do we wait? what do we do? >> all right, clyde. >> great yes. she has some time. invest in a 529 plan. you've got some time. ride it out. she's got some time before they start college. that's the best way to start saving for college. >> how much time does she spr? >> she's got about 10 years. the girl is 8 years old. she's got about 10 years before she's ready to use that money. i wouldn't say go into a guaranteed plan. they have those options, as well. the rate of return is lower. right now you've got some time so do a regular 529 plan. >> let's go to the next question.
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>> my name is devance, from atlanta, georgia. i do have a 401(k), and it has not been affected as of yet. but being that the stock market has dropped so drastically, over 600 points, do you think that i should do something, should i move it, should i leave it there? i don't want to be impulsive. i am an investor and i think it would be better if i leave it alone but i do need some advice on which direction i should take. >> it's a great question. a lot of us are asking the question. >> i think he answered his own question. he's an investor. ride it out. take some time. don't react to the market. know what's in that 401(k) but don't react and say, i've got to sell everything. again it's buy low, sell high. you don't want to sell off everything, knowing that the market's going to turn back around. i would say wait it out a little while. don't want to be too risky. looks like he's a pretty young guy. >> okay, let's go to the next question.
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oh, this one is from facebook. daniel asks, what does this mean for college scholarships and government subsidized student loans? i'm having a hard enough time paying for my associates in art, how am i supposed to get my bachelor's? >> hmm, that's a great question. the thing that's been affected with the debt deal that was worked out is only for grad students are really affected by the subsidized, unsubsidized part. they're going to be paying interest on the loans immediately. for undergrads they're still protected. i would tell him not to worry about that. the loans are still there. some banks have tightened up a little bit. but the loans are still there. so i would tell him not to panic. still go about the way that he was going to do it and make sure he starts earlier rather than later. >> do not panic. >> do not panic. >> exactly. >> he's going to have to become my finance guy. >> i got you covered. >> i started to panic a little bit. >> we got you. >> thank you, clyde. >> there's still time to get in your questions. your money questions answered. we're going to tell you what the
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news on wall street means for you. whether it's about your car payment, mortgage, student loans, send it to me at twitter or facebook.com/suzannecnn. we're going to bring clyde back next hour to get the responses. let me tell you about a very important phone call i made. when i got my medicare card, i realized i needed an aarp... medicare supplement insurance card, too. medicare is one of the great things about turning 65, but it doesn't cover everything. in fact, it only pays up to 80% of your part b expenses. if you're already on or eligible for medicare,
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half a billion dollars in aid the u.s. has already sent this year to somalia, ethiopia and kenya. according to the u.n., more than 12 million people are in desperate immediate for food across the region. somalis are hardest hit. they are arriving by the thousands every day. at the dadaab refugee camp across the border in kenya. it is the largest refugee camp in the world. our chief medical correspondent dr. sanjay gupta is there. >> these children are so resilient, as well. but you know, the question remains, how do you take care of so many people in this large refugee camp? hundreds of thousands of people in the middle of drought, in the middle of war, in the middle of just staggering poverty. let me give you a little bit of an idea through the story of a father's love for his boys. what you're looking at may best be described as the most desperate place on earth. vulnerable children, thick with misery.
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not a thing you can tell right away when you're seeing a little baby. if you take a look here, the baby's fontanel, it's so sunken in, this is what happens when a baby's had no food, no water, so dehydrated. >> basic, basic necessities. so hard to come by. to come by. dust and starvation nearly everywhere you look. this is also what happens when you're at the world's largest refugee camp. all these folks waiting to see one doctor over here. as you look at these images, consider this simple fact. these are the lucky ones, lucky because they made it here at all. this family of five made it out of somalia just yesterday. came out here to the middle of the desert to give you a real idea of what this family went through. they walked for 30 days and 30
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nights, primarily walking at night because it was cooler, carrying those three kids. sometimes carrying a kid, going back, getting another kid and then just doing this over and over again in the desert, 30 nights' worth. they crossed the border and then they get robbed. bandits take what little possessions they actually have. but the bandits didn't take this father's dream. and his drive to keep his kids alive. it's not going to be easy. this is another thing you see here quite a bit. looking very listless, just not very active at all but look at the breathing specifically. breathing with his abdomen, not so much with his chest. this is something that's very tiring for a baby. he also has whooping cough because the child was never vaccinated. he will need a hospital, oxygen, antibiotics and yes, food and water. all of it may come too late. so painful to realize that every single one of his ailments could
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have been prevented. unfortunately, though, that hardly ever happens in the most desperate places on earth. i can tell you 2,000 people a day are expected to be coming into these refugee camps. the numbers are just going to continue to increase. things are in some ways starting to improve. they are getting more supplies, getting more of a structure to these camps as well, but over the time to come, it's really going to be a question of taking some of these precious resources and moving them into somalia so people don't have to make these unbelievably difficult treks. back to you. >> thank you. today's talk-back question in politics, would term limits make a difference? michael says absolutely. the bought off out of touch old guard would be a thing of the past. congress cannot progress into the future with dinosaurs running the train. more of your responses ahead. the bundler. let's say you need home and auto insurance. you give us your information once, online... [ whirring and beeping ]
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here's a chance to talk back on one of the big stories of the day. today we're asking in politics, would term limits make a difference. carol costello has got your answers. hey, carol. >> a very popular question today, suzanne. i wonder why. talk-back question today, would term limits make a difference. this from donna. i say yes to term limits. career politicians lose total touch with reality and the average person's day-to-day living struggles and get rid of party line voting, too. from carla, i think it would be much more helpful to have campaign finance reform that has some teeth in it so that our leaders don't feel so beholden to a certain sector. that would be better than term limits, i think, but i'm still open to term limits. this from aaron, i don't think so. it's up to the people to determine whether or not their
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representative or senator is whatever, is still doing a good job of representing them. given the limited power of any single one of these people, term limits will cause more damage than good. and this from timothy, come 2012, there's going to be a whole bunch of terms becoming limited. vote them all out. no incumbent 2012. keep the conversation going. facebook.com/carolcnn. i'll be back in about 15 minutes. >> lot of passion there. lot of passion people bring to this, i think. >> people are angry at lawmakers and angry at the president, too. it is bigger, brighter, even now easier to find cnn's most compelling video. we invited you to check out the bold new look of cnn.com's new video experience. it is at cnn.com/video. on innov. but my data is doubling. my servers are maxed out. i need to think about something else when i run. [ male announcer ] with efficient i.t. solutions from dell,
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he's a conservative governor from texas and a favorite of the religious right. sound familiar? well, it would not be the first time that that combination launched a potential candidate into the white house. jim acosta, part of the best political team on television, live from the political desk in washington. so what do we think? word on rick perry. is he going to run? >> looks like he's going to run. it sounds a lot like george w. bush the way you set this up, suzanne. the texas governor is making some moves this week that are really leaving little doubt as to what his intentions are. he is not going to the ames straw poll on saturday which might say to a lot of people maybe he's not interested in running for president. no, no, hang on.
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perry has other plans. he's going to south carolina, which is going to hold the first in the south primary next year. he's going to palmetto state this weekend for a political event being staged by red state.com that is a pretty influential conservative blog and what has been said through various sources to cnn is that the texas governor expects -- is expected to make a pretty serious announcement this weekend in south carolina. if not officially throwing his hat into the ring, he may just leave no doubt that he's running for president this weekend at that event in south carolina and then later in the day on saturday, he goes up to new hampshire. so all of these moves leaving little doubt as to what governor rick perry is up to. we'll be watching, suzanne. >> i know you'll be following him, thank you, jim. the latest political news, you know where to go. cnnpolitics.com. top of the hour.
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i'm suzanne malveaux. want to get you up to speed. dow stocks shot up like a rocket in early trading today. right now, blue chips are up by 230 points. it's quite a contrast to monday. anxiety over the u.s. credit downgrade pushed dow stocks down 634 points. whether the rally holds may depend on the federal reserve, two hours from now, there is speculation the central bank will announce some sort of new economic stimulus today. the remains of 30 u.s. fighters killed in afghanistan arrived at dover air force base in delaware today. the americans were killed on saturday when the taliban shot down their helicopter. relatives gathered at dover to bring their loved ones home. >> we're heartbroken. brian was a remarkably gifted, thoughtful and compassionate young man and we're incredibly proud of him. all the other s.e.a.l.s and brian are heroes. they are the best of the best and we can never thank them
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enough for the sacrifice that they have made. >> the remains of eight afghans killed in the fiery crash were also brought to dover air force base for identification. well, london is now putting 10,000 extra police officers on the streets tonight to combat mob violence, riots and looting began saturday after a police shooting. prime minister david cameron cut short his italian vacation, recalled parliament to deal with the crisis. our cnn crew came face-to-face with a mob that was leading to a pretty scary moment. >> we are going to hold our line behind us here. we are going to have to move. things being thrown. i don't know if you can still hear me. we're just having a few bottles thrown at us there. we're okay, though. we're okay. yeah. i mean, that's the danger, you know.
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as soon as people stray down this road, it erupts in violence. >> violence has spread to a number of london neighborhoods and even other cities, including birmingham and liverpool. nato rained bombs on libya's capital overnight. this is the heaviest attack in a month. explosions lit up tripoli's night sky for the better part of an hour. nato war jets appear to have hit a chemical plant which is burning east of the city. in texas, jurors in the warren jeffs trial have just gone behind closed doors to decide his sentence. he could go to prison for life. the same jury convicted the polygamous sect leader of sexually assaulting two children. jeffs claims the girls, ages 12 and 15, were his wives. swimmer diana nyad made it to key west, florida this morning, but by boat. the 61-year-old was trying to
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become the first person to swim from cuba to florida without a shark cage, but she gave out about halfway through the 60-hour swim and her team pulled her out of the water. she told me just this last hour that she was deeply disappointed but proud of her effort. >> i suffered a bad, bad asthma bout for 11 hours. never in my life had asthma in the water and yesterday i started doing 30, 40 strokes and was so depleted of oxygen i had to roll over on my back and gasp for oxygen for three or four minutes so i was limping and limping along. i thought you know what, it's not going to be a pretty finish, i can't be the swimmer i am today because of what i'm going through. now more on stocks making a comeback after the huge sell-off yesterday. alison kosik is at the new york stock exchange. perhaps we got a little bit of good news?
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i don't know. >> reporter: yes, we have green arrows and that's good news. definitely a nice rebound that's sticking at least for now after that nosedive we watched yesterday. usually this would be a feel-good happy days are here again kind of rally but no such luck, because if you look at how stocks have been doing over the past couple weeks, even just the dow over the past 11 sessions, is off almost 1900 points. wall street definitely looking to see if the fed can come to the rescue, the fed right now is meeting. suzanne? >> what are we expecting to hear from the federal reserve today? >> reporter: you know, wall street is expecting to hear three things. first, what the fed's going to do on interest rates and interest rates are expected to remain at historic lows. secondly, wall street will be looking to see what the fed's assessment of the economy is. what is the fed's outlook on the economy, many saying you can't ignore the obvious slow-down in the economy. and thirdly, wall street's going to be looking to see what kind of language the fed is using. will the fed hint about a possible economic stimulus down the line, and this could go
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either way, because if the fed indicates that it's not really going to do anything, it could wind up being a disappointment for the market. but if the fed announces a possible economic stimulus, it could spook the markets because then investors would think hey, i didn't realize the economy was in such bad shape. so we'll have a more definitive answer around 2:15, when we will bring you the decision later. >> we'll be following it closely. thank you. when the market turns it's easy to get caught up in the numbers but today, we want to hear from you. your stocks, your credit cards, your mortgage, your student loans, they could all be impacted by this downturn. so we would like to help. send your money questions to twitter@susan malveaux. we will go to the experts for some answers. here's your chance to talk back on one of the big stories of the day. today's question in politics, would term limits make a difference? carol costello joins us from new
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york. >> reporter: that's become talk at the dinner table these days, term limits. i'm telling you, it is a hot topic these days. voters are so mad at politicians right now, they're saying throw the bums out. a "usa today" /gallop poll say only 24% of members of congress deserve re-election, the lost percentage in 20 years. but hang on. 56% of those polled think their own representative deserves another term. in other words, go ahead, throw all the bums out except my bum. well, that's exactly what they're trying to do in wisconsin. in a recall election today, voters are trying to decide whether to kick out six republican state law makers who supported governor scott walker's anti-union legislation. i know what you're thinking. if only we could recall the president or the house speaker, et cetera, et cetera, but we can't. so what about term limits? for example, house members serve two years and can get re-elected forever. that means they're constantly campaigning and maybe voting not
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for the good of the country but to prolong their careers. so why not limit the number of terms lawmakers serve? of course, that would be admitting that you as a voter made an unwise decision but i digress. university of virginia professor actually thinks you need experienced people in congress. they know how to work the system and don't laugh, they know how to deal with high powered lobbyists. he says a good compromise might be to extend house members' terms from two to three years and allow them to serve a maximum of 12 years. so the talk-back question today in politics, would term limits make a difference? facebook.com/carolcnn. i will read your comments later this hour. most of us have term limits at our jobs. we'll see what folks have to say in politics. thanks, carol. here's a rundown some of the stories we're covering over the next hour. keeping the focus on the debt downgrade and what it means for your money. a financial expert is going to tell us what it could mean for
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mortgage rates and the housing market. also, we will talk about the impact of the downgrade on credit card and loan rates, and you actually might be afraid to open up your next 401(k) statement. we will examine the impact on your retirement account and other investments. and we are answering your personal questions about the market. what it means for you. that's next. send me your questions at twitter or facebook. we will go to the experts for some answers. i'm harriet dixon from troy, alabama. my husband and i are thinking about buying a house and we're wondering if we should wait a little longer until things get better, or go ahead and buy now. we're having mexican tonight, so another pill then? unless we eat later, then pill later? if i get a snack now, pill now? skip the snack, pill later... late dinner, pill now? aghh i've got heartburn in my head. [ male announcer ] stop the madness of treating frequent heartburn. it's simple with prilosec otc.
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stocks bounce back just a bit from yesterday's huge sell-off. the markets have been in positive territory since the opening bell. investors are waiting for the outcome of today's federal reserve meeting. right now, the dow is up by 211 points or so. we're keeping a close eye on that. but the market taking a roller coaster ride these last few days, lot of anxiety about what you can do to protect your own personal finances. we're here to help. all morning long, you have been sending us your questions about the market, what it means for you. i'm joined by valerie coleman-morris, a personal finance specialist and former cnn business anchor. great to see you. thanks for joining us here. >> great to see you. >> we have been asking folks some questions here. i want to start off with this one. let's take a listen. >> i'm harriet dixon from troy, alabama, and my husband and i are thinking about buying a house and we're wondering if we should wait a little longer until things get better, or go
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ahead and buy now. >> all right, valerie, what should she do? >> first of all, the housing market is confusing for people even in good times. people try to figure out when is the best time to get the best interest rate, what should i do and how should i do it. i always say that the bottom line is what was your plan. i don't think that she should respond to the fact there's been all this volatility, will i get a better interest rate or not. as we look at it, interest rates will go up and down and they fluctuate with market volatility so my answer to her is what was your original plan, what was your time frame, did you have an interest rate that was going to work right for you. go back to your basics and then move forward. this up and down in the market should not disrupt your plans. they were well thought out. believe in them, believe in yourself, move forward that way. do not react. >> very strong answer. this one is from my facebook page. lauren asks how much harder will
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it be to get a small business loan. >> you know, it's a very interesting question. the small business loans are consistent with what is happening in the market. i think she needs to talk to a specialist on small business loans. my specialty is making sure that you're in the right frame of mind for doing this. do you have the basics in line. do you understand how much money you need, do you have a good business plan. have you created the financials so that you know that you can look for money in a direct, specific, straightforward way. sometimes people make it more complicated than it needs to be. what her thinking was previously about needing a small business loan, continue to search for it. if she has a good business plan and a good business, she'll be able to find the money. >> all right. thanks. we will get back to you in a little bit with some more questions. we appreciate it. still time to get your money questions answered. we will tell you what the news on wall street means for you,
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whether it's about your car payment, mortgage, student loan. we will get more expert advice for surviving these hard times. remembering the fallen heroes, 30 american troops killed over the weekend in afghanistan. their bodies were returned to the united states today. a live report from the pentagon next. and how much the people in your life count on you. that's why we offer accident forgiveness, man: good job. where your price won't increase due to your first accident. we also offer a hassle-free lifetime repair guarantee, where the repairs made on your car are guaranteed for life or they're on us. these are just two of the valuable features you can expect from liberty mutual. plus, when you insure both your home and car with us, it could save you time and money. at liberty mutual, we help you move on with your life. so get the insurance responsible drivers like you deserve.
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breaking news we are following here. i want to give you an update on this. this is warren jeffs, the polygamist, he was convicted of sexual assault. he's just been sentenced and he got the maximum on count one, life in prison on charges of aggravated sexual assault. on count two, 20 years, warren jeffs getting the maximum
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sentence there. the jury had deliberated on the sentencing phase of his trial on charges related to sexual assault of a child. jeffs was convicted on two counts of sexual assault of a child on thursday. he was the leader of the fundamentalist church of jesus christ of the latter day saints. he faced a maximum sentence of life in prison on the conviction of sexually assaulting a 12-year-old and a 15-year-old who he had called his spiritual wives. but you see video there of him getting into the car, warren jeffs getting life in prison. we are also following a very emotional day for the families of 30 u.s. troops killed aboard a helicopter that was shot down in afghanistan over the weekend. the bodies of those killed were brought to dover air force base in delaware. that happened today. meantime, there are new questions being raised about the attack. barbara starr is joining us from the pentagon.
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i understand you have some new details about what actually happened. >> reporter: we do indeed, suzanne. let me get to a couple things first. as you say, the planes are on the ground at dover. the remains will be transferred within the coming hours and we are actually told this very dignified ceremony will go on for several hours because there are 38 sets of remains. the public will not see it. we are not allowed as the news media to be there for this ceremony. but there is new information we may never officially learn the names of all the navy s.e.a.l.s who perished in this accident. what we can now confirm is that special operations commanders have asked the defense secretary to not publicly release the names of the s.e.a.l.s because they belong to a covert unit. this is very tricky business, because we have talked to so many families publicly over the days since this all happened. many families publicly coming forward to have their loved ones
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remembered, but the military, very sensitive about the names officially coming out and having them identified as belonging to this covert unit. i have to tell you, if the names do not come out from the pentagon, that would be history-making, because every troop that has fallen in the last ten years of war has been publicly acknowledged by the pentagon. we know more now about what happened on the ground. sources confirming to us that the s.e.a.l.s were actually called in because the rangers on the ground, the army unit on the ground, had seen some of the taliban that it was trying to fight gather and run away. they thought the taliban leader they were after and his associates were going to run and leave this area. they called for some backup force and it was this covert unit of navy s.e.a.l.s that was on call to come as a backup force. so they are called in basically to chase down some taliban that were on the run and that,
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officials say, is when taliban fired a rocket-propelled grenade that hit the helicopter with these catastrophic results. the investigation now under way, they are going to look at all of these questions. >> barbara, turning to the ceremony this afternoon, do we know which dignitaries are actually going to attend? >> reporter: well, every expectation now that the president will be there, the defense secretary will be there, the chairman of the joint chiefs, several very senior military leaders from the pentagon, from the military services as well as senior civilian officials. this will be a very significant gathering of military v.i.p.s, of administration officials. again, tough to explain. the news media will not be there. we will have no pictures, we are told, to show this to you because the remains are not identifiable at this point so families cannot grant permission for photos of any particular
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casket coming off the plane. but this very sad ceremony will go on for several hours, we are told, this afternoon out of public view at dover air force base, delaware. >> thank you for the update. we know family members are speaking out about loved ones who were killed aboard that helicopter in afghanistan. we are also hearing from members of their communities as well. here they are in their own words. >> it's got to be a proud moment for the community and stuff. it's an honor. >> he's always loved what he did. he told me he couldn't believe he could do this for a living because he loved it so much. >> i just had the feeling if anything ever did happen to him, it would be en route to something or coming back. >> kevin houston met christopher
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kelly through kelly's daughters' class mates. the vietnam vet became a mentor and father figure to a boy who had always wanted to be a navy s.e.a.l. >> one day i showed him my photo album from vietnam and any time he came over, he asked to see it. his best friend came over and told me and he had his head down when i went to the door. i knew right then. >> i never met somebody that loved to do what they did as much as he. >> gave you the shirt off his back. you know, he was a really great guy. >> i'm heartbroken. brian was a remarkably gifted, thoughtful and compassionate young man and we're incredibly proud of him. all the other s.e.a.l.s and brian are our heroes.
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we're watching the markets as stocks rebound from yesterday's plunge. the dow has been in positive territory since the opening bell. right now, it is up 216 points. keeping a close eye on that. while u.s. markets try to bounce back, overseas some markets closed down following wall street's plunge yesterday. andrew stevens joins us from hong kong. give us the headline for the global stocks today. >> reporter: i think the headline right now is panic over, and boy, a lot of people are very happy to see what's going on on the s&p at the moment, up about 3.7% last time i looked. there's a bit of bargain hunting going on. things are still very volatile but after what we've seen over the past few days, this is indeed greatly appreciated. it's been an absolutely wild ride, though, around the global
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markets today, after that huge sell-off we saw in the u.s. yesterday. as one stage, just before the london markets were going to open, the futures were pointing to a fall of something like 7%. if you look at london at the moment, it's up by about 2%. gives you an idea. here in asia, there were even more extreme peaks and troughs today. this is all in relation to what went on on wall street and just the sort of, what i keep talking about, this lack of clarity, what do we do. people were voting with their feet, getting out of the market today. in seoul, that market down almost 10% at one stage. it closed about 3% down. japan down 5%. it came back, still closed down but not nearly as badly. so we've got this breath of respite at the moment. now all eyes are on what the fed chief, ben bernanke, will say. >> we will watch that very closely. i like what you said, panic over, but what else besides the u.s. downgrade is affecting markets overseas? >> reporter: well, really, it
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ties in very closely to the state of the u.s. economy. the u.s. economy is still an enormous engine for exporters in the asia region, and if you look back to 2008, where asia was so dependent on the exporting countries or importing countries, i should say, like the u.s. and europe, that after 2008, policy makers here were saying we've got to get more domestic consumption going, got to wean ourselves off dependence on the u.s. that was three years ago. three years on, they have started to but there is still a massive dependence on the u.s. economy. also, think of the euro zone as one economy. it's about the same size as the u.s. when you've got that debt crisis in europe, coupled with this really cloudy outlook for the u.s. economy, the two biggest markets for asian exporters which is still such a key part of asian economies, it's no wonder the asian markets are taking fright to what's going on. you still have two very distinct
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things going on. >> andrew stevens, thank you so much for the global perspective there. appreciate it. all morning long, you have been asking us your questions about the market, what it means for you. clyde anderson is a financial expert and motivational speaker. he joins us to get some of those answers. thanks for not running away, screaming and running away. >> i'm prepared for this. >> good. we have been asking folks what their financial situation is, what they need to do. let's take a listen to somebody we spoke with earlier. >> i'm robin weiss from louisville, kentucky. my question is i have eight children ranging 3 to 19, and i'm trying to figure out what i need to do to save for college both for the one who is a sophomore and my 3-year-old. do i buy into stocks now or do i wait? >> great question. eight kids. >> eight kids. a lot of investing needs to be done definitely to prepare. that's a lot. the cost of tuition is going up. i would tell her definitely time to buy. we talked about it earlier, buy low, sell high. this is the time to buy if you're buying but again, we
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talked about that 529 plan. it's a good way to invest and spread the risk about so you get a nice amount of return but are not too risky at the same time. she's got a lot of kids. make sure you're not losing any of that money as well. that's a great way to go for her. >> all right. then also, this is from my facebook page here. this is candy. she says i'm 60 years old, unemployed, i lost $900 in two weeks from my i.r.a. i had only $10,000 in it and i moved it to money market mutual funds and my broker says i can move it back into the stock market when i feel more comfortable. did i do the right thing? >> that's a hard one. she's in a rough predicament. i don't know if i would have advised her the same way as to go ahead, it's almost a panic thing, she pulled that money out to move it somewhere else. she's not going to get much return on the money where she moved it to. but the market as we're watching today has turned around a little bit. she could have gotten some of those gains -- those losses back with the gains we're seeing today. so that's why i say don't panic. wait it out sometimes. but now she's in a position if
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she's going to buy, she needs to buy soon and get back into the market. we don't want to gamble with our bill money, either. if she's in position where she's unemployed, doesn't have much money, this is money that's crucial to her right now. she's got to pay bills. you don't want to tell somebody get in the market with their bill money. make sure you have liquidity aside that you can gamble with because it is a game, it's a risk. we want to be prepared to take that risk. >> you have been great. we will have you on many, many times to sort this out for all of us. great advice. we appreciate it. voters are going to the polls in wisconsin today and they might be voting out some of their lawmakers. luther king jr.] i still have a dream that one day on the red hills of georgia, the sons of former slaves and the sons of former slave owners will be able to sit down together at the table of brotherhood. i have a dream today! [ male announcer ] chevrolet is honored to celebrate the unveiling of the washington, d.c.,
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citizens outrage in wisconsin. just remember this. yep. that's when thousands of people took over the state capitol in february. they were upset over a bill that would take away the collective bargaining rights of public
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employees. well now, they're trying to recall some of those lawmakers. ted, who is fighting this recall today? >> reporter: you have six separate republican senators that are fighting for their political life today around the state of wisconsin, in districts around the state of wisconsin. next week, two democratic senators will face the same in a separate election, basically the republicans are going first, if you will, just because the paperwork was submitted first by democrats. this as you mentioned, is all because of the fighting that went on and just the anger that was generated during that period in february where scott walker, the governor here, had his bill go through which was this budget repair bill, that it was billed as, but it attacked the collective bargaining rights of unions so that brought in money and interest from around the country. in this recall election, $30 million plus has already been
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spent. they expect that almost $40 million will be spent when it is all said and done. this is money not from wisconsin. i mean, nobody really cares about joe schmoe in a tiny town in wisconsin to pour in millions of dollars to their campaign. this is about the ongoing battle between democrats and republicans with unions, straight in the middle. you've got all this interest from around the country poured into wisconsin and these candidates, they've got tv ads and flyers and everything else. so a lot of eyes on wisconsin. >> ted, who could end up the big winners in all this? >> reporter: well, that's a great question, because from a practical standpoint, the republicans have a majority in the senate right now. democrats need to net three seats. they think they'll be able to do it. but then the bigger question is well, so what? the governor is still scott walker. anything that comes to his desk, he's going to veto. they really can't go back and change what's already in place here, in terms of the laws that
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have already been enacted. it really is about this match between these two parties, between democrats and republicans, and it is about sending a message to other states, don't do what wisconsin did or we're going to come at you. >> what about the tea party? they were very vocal during this big battle over the budget. are they turning out in support of those who are being recalled? >> reporter: oh, absolutely. you've got a lot of democratic money being poured in here, too, from around the country. but over the weekend, the tea party had a bus tour express going around to all these small districts, trying to bolster some support for sitting republicans. quite frankly, it is interesting if you're into the current political situation in this country, this is like a little mini super bowl because it has it all. it will come down to the wire. if that's your thing, this is very entertaining to watch. if you're disgusted by politics in this country, this is a pretty disgusting example of it. millions of dollars being spent
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on basically bragging rights. >> ted, thank you very much. appreciate it. checking stories from our affiliates across the country, an outburst in an atlanta courtroom startles the judge and everyone else. take a listen. >> i'm going to sentence you for murder to life in prison. >> no! no! no! i'll never see my son again! no! >> michelle nichols visibly upset after the judge sentenced her son's killer to life with parole. her 19-year-old son was murdered over his smartphone outside a train station last year. brodrick smith pleaded guilty and could get out in 30 years. trying to stop random attacks by mobs of young people, that's philadelphia's mayor who puts kids on a curfew. children under 13 have to be home by 10:00 p.m. teenagers by midnight. the weekend curfew is even stricter in some parts of the city. 9:00 p.m. for everyone under 18.
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in the middle of a devastating drought, here's a lake in central texas that is not drying out. that's because the city is pumping its excess drinking water into it to save the wildlife. and there is still time to get your money questions answered. we will tell you what the news on wall street means for you. if you've got a question about your car payment, credit cards, student loan, send it on my twitter or facebook page. we will go to the experts for sound financial advice to see you through the downturn.
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getting information that
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president obama has arrived at dover air force base. he is going to be attending the ceremony, the very somber ceremony that is taking place there this afternoon along with many other administration officials and military dignitaries who as we will see the bodies of 30 soldiers, navy s.e.a.l.s and soldiers who died, when their chopper was attacked in afghanistan. one of the deadliest days, a strike by the taliban, a very somber occasion. the president will be attending. we have seen pictures of him arriving at that somber ceremony to recognize and to bring home the bodies of those navy s.e.a.l.s and soldiers who died in that helicopter attack. we are also getting information from chad myers, breaking news now. a tornado warning that is over the philadelphia area. what do we know about that? >> just south of philadelphia near wilmington, delaware, this is a big-time circulation,
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probably very close to the ground near wilmington and then traveling across i-95 towards chester, maybe even toward camden in the south philadelphia suburbs there. the storm is probably either on the ground at this point or very close to coming down. it's 50,000 feet tall which means ten miles high for this thunderstorm. it's rotating and some of that rotation may very well be on the ground with the tornado warning right there for wilmington, delaware and points northeastward from there. >> thanks for the update. with the market taking a roller coaster ride these last couple days, there is a lot of anxiety about what you can do to protect your own personal finances. well, we will try to help. all morning long, you have been sending your questions about the market and what it means for you. i'm joined by valerie coleman morris, a personal finance specialist and former cnn business anchor. good to see you again. you going to help us out here? >> oh, absolutely. here's my laundry list. i want to talk to the parent who
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has two kids in college, that have a house, they want to retire and are going now what, or to the young person in their 20s saying i haven't even gotten started, what do i do in the midst of this. do not panic. that's the most important thing. i think it's also important that people understand if they make money decisions under pressure, it's usually going to be a bad decision. every decision you make is linked to every other thing in your life, so consider making a plan, be logical about it and approach it that way. spend wisely and save wildly. that is the most important thing that you can do. and please, don't keep checking your portfolio. it will only panic you more. just stay the course, be calm, stay still, and breathe. >> we want to get to some questions folks have for you. want to bring in the first question. take a listen. >> i'm wayne clark from portland, oregon, wondering about real estate in these times. i have two properties, i don't know whether to refi, whether to let one go, whether to buy more, even. i don't know what to do.
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>> what do you think he should do? >> i think the reality is, he had a plan. you see, just because this market has done what it's done, oftentimes people think now i have to redo everything i have in place. you don't. when i say be still, i say be still so that you can realize why you had that plan, why he bought those properties, what the intent was. stay the course. the market was down yesterday. it is rising now. investors cannot have knee-jerk reactions. if you have a knee-jerk reaction, it's probably going to be a wrong reaction. so this is the time to make a plan so that you can respond appropriately the next time. and there will be, the market is up and down but it usually will settle. >> this one is from my facebook page. kyle asks what effect will the debt problem and downgrade have on student loans, both private and federal, and particularly interest rates. it's already terrifying enough to see the hole i'll be in when i graduate. should i anticipate it being
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even worse? >> you know, my answer to that is don't worry about crunching those numbers because you have made an investment in your future. student loans, they can be daunting but the reality is that's good debt as opposed to the plastic bad debt that a lot of students graduate with. make sure that he stays focused on the fact that it's an investment in his future. if you have a graduate degree, that adds $10,000 sometimes to the job opportunities that you have over a lifetime, it can mean $1 million difference in what you can make. so education is good debt. it may be daunting but stay the course. that is the main thing that i can say. students need to understand that they can get to that debt eventually and the way that they are able to multi-task is the number one thing, and you may think this is strange, he's worrying about paying down that debt, best thing he can do is start investing in his retirement because in your 20s, if you do that, you have the magic of compounding.
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let's refocus and recalculate rather than saying what's going to be the negative of having student debt, let's look at the positive of having a good education and therefore, being able to co-create jobs. one other thing i say to all students, look to the global economy because your jobs are there as well, outside of and inside of the united states. >> great advice. great to see you. thanks for joining us here in "cnn newsroom." we appreciate all your questions today. keep the conversation going on my facebook page. our free money advice doesn't end here. time for the help desk, where we get answers to your financial questions. joining me this hour, a personal finance expert and the president of consumer education at smartcredit.com. thanks for coming in. two very interesting questions. the first comes from les in indiana, who writes my wife and i are retired and receiving
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income from social security and my pension. we also have several series e bonds that are maturing soon. is there any way we can avoid paying taxes on that income? >> it's an interesting question. series e is just another fancy way of saying savings bonds. the interest on that of course is exempt at a state and local basis but on the chopping block for federal taxes. however, if you use those proceeds for qualified educational expenses or to contribute into a 529 for yourself, your spouse or dependents, you can then avoid taxation. but it has to be qualified. >> how about the grandkids? >> unfortunately, it can't be grandkids unless the grandkids are considered dependents using the irs definition. so take them away from the parents. >> john, this question comes from jay who asks i have a grad school loan of around $43,000. i can only afford to pay $300 a month but the interest rate is
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4.75%. what can i do to get this monkey off my back? so true. so many people in debt because of school loans. >> the student loan tends to be the permanent monkey on your back until you can pay it off because most student loans are referred to as statutorily dischargeable which means you can't get rid of them in bankruptcy. really, the only thing that concerns me about the question is the amount. $43,000. that's a lot of money. the interest rate, 4.75%, is killer. take into account the fact that it's probably somewhat tax-deductible. one word, forbearance. ask the lender for forbearance. it means you don't have to make payments for some period of time. they will tack on interest and principal to the back of the loan but it will give safe harbor for a period of time where he can get back on his feet. >> you also think what sector he's working in. there are some jobs you can go into for the public sector that will forgive a lot of your loans. might be able to do that. thank you so much. if you have a question you want answered, send an e-mail to the cnn help desk.
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here's a chance to talk back on one of the big stories of the day. today, we're asking in politics, would term limits make a difference. carol costello has got your responses. >> pretty good response today again. would term limits make a
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difference. this from rob. we don't need term limits. we need more educated voters. seems like americans can't separate facts from the political spin. it's sad yet safe to say the average american citizen knows nothing about the politicians they vote in. this from kim. yes, and downgrade their benefits package. it's really ridiculous. some have the nerve to begrudge union members their benefit packages. the problem is, wouldn't they be the one to vote this up or down? what do you think will happen? nothing. this from elaine. i support term limits. the issue is not only that politicians seem to spend so much time trying to keep their jobs, rather than doing their jobs, but we need to see new folks, new ideas, new answers. voters do not get that opportunity when incumbents continue to run. this from john. if you are not a team player, always combative, miss too much work, do not meet timely assignments, always pointing finger at others' faults, refusing to accept blame for bad performance, the question would be how long would you expect to be employed. please keep the conversation
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going. thanks as always for your comments. >> thank you, carol. appreciate it. keep it here for a reality check on some of your investments. we are talking tech stocks next. , while my sneezing and my itchy eyes took refuge from the dust in here and the pollen outside. but with 24-hour zyrtec®, i get prescription strength relief from my worst allergy symptoms. it's the brand allergists recommend most. ♪ lily and i are back on the road again. where we belong. with zyrtec®, i can love the air®. when i got my medicare card, i realized i needed an aarp... medicare supplement insurance card, too. medicare is one of the great things about turning 65, but it doesn't cover everything. in fact, it only pays up to 80% of your part b expenses. if you're already on or eligible for medicare,
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is in san francisco. dan, tell us about the stocks. have they taken a beating or are they holding steady? >> reporter: well, they took a beating yesterday. today, they're doing much better, but over the last several months, it was kind of looking like the '90s again for technology stocks. we saw a lot of enthusiasm for some of the new companies on the block like linked in and pandora radio. linked in yesterday took a beating, down 17%, but today, it's making up some ground, up about 11%. you look at apple, down significantly yesterday, now it's up a little more than 4%. the question is whether or not some of this enthusiasm that we have seen over the last several months, whether that will be scaled down a bit or we'll be seeing it once again. we still have a couple more companies to go public over the next several months, groupon being one of them. the social gaming giant also set to go public. the big question around the corner is when will facebook announce its ipo, how those companies will be received and when they actually do go public could be very telling. >> aside from the stocks, how's
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the job outlook in silicon valley? how are they doing? >> reporter: well, we have seen tremendous gains over the past few months, more than 1,000 jobs added over the past several months. then you look at san francisco, more than 4.6 million square feet leased to tech firms just in the first six months of this year alone. we're expecting to see about a 15% growth for companies over the next two years. where you're really seeing this growth is in the areas of computer software, in engineering jobs. if you have the skills to be a software engineer, you can really sort of have the pick of the litter. you obviously need a computer science degree in order to find those jobs. how the growth that we're seeing in silicon valley translate toss the rest of the country really remains to be seen. of course, a lot of very smart people trying to figure that out. >> dan, is it really competitive for those folks who are trying to get those kind of jobs, the tech jobs?

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