tv CNN Newsroom CNN August 4, 2009 9:00am-11:00am EDT
destination and then pick up your dog? >> i will only tell you this that there were people from boston who drove two hours to this regional airport where, you know, we shot the story, they didn't mind the extra travel or the extra inconvenience at all. >> not surprising. did they serve snacks? >> no, no snacks -- actually the owners brought in dog food and the dogs are fed once. they stop over in chicago, the dogs are fed and that's all they want because you don't want accidents on the plane. >> i wanted to know if they were getting better treatment than people. continue the conversation on today's stories, go to our blog at cnn.com/amfix. that's going to do it for us. >> it sounds easier to let your neighbor dog sit. here's "cnn newsroom" with heidi collins, have a great day. surprise, former president bill clinton is in north korea and he's on a mission too. he's trying to free two american journalists. and he's getting a pretty warm welcome, our foreign affairs
correspondent jill dougherty will be taking a closer look at that. also, keeping a very close eye on iran today because there are new accusations and new questions about the three americans that we told you about that are under arrest there. we'll be getting to that story shortly. and in pakistan, young boys stolen from their homes, brainwashed and then trained to kill. good morning, everybody, i'm heidi collins, today is tuesday, august 4th, and you are in the "cnn newsroom." a rare mission inside north korea for a former american president, bill clinton arrived there early this morning. he's there trying to gain the release of two jailed journalists. they were sentenced to 12 years in a very secretive trial. cnn's foreign affairs correspondent jill dougherty live from washington with the latest on this. jill, good morning. >> good morning, heidi. it's high profile, it's -- you could say high stakes, as well, although you'd have to think that the former president setting off for pyongyang did
expect he'd come back not empty handed. but it's unpredictable in the north. we have two american journalists there, they were shooting on the border of china and north korea, arrested march 17th, and then in june sentenced to 12 years of hard labor. so the mission for president clinton is try to secure their release. the statement that was released just in the past couple of hours by the white house spokesman robert gibbs says while this solely private mission to secure the release of two americans is on the ground, we will have no comment. we do not want to jeopardize the success of former president clinton's mission. and note the wording there is solely private mission. they are saying that this is not a negotiating representative of the united states. and it's important to note that because as this is going on, you have the other plot, which is
the standoff over north korea's nuclear program. so we're trying to keep these separate. >> yes, and absolutely. interesting, as well, of course who his wife is. you have the secretary of state, mrs. clinton. >> yes. amazing number of threads that are interconnected and of course, just about a week or two ago, you had the north koreans making very, very personal comments about the secretary, insulting her really as not so bright person who looked like a pensioner. so there are a lot of threats. as i said, they're trying to keep them separate because this is very, very sensitive, and the most important thing, of course, is to get the two americans out. >> very good. all right, jill dougherty, we appreciate that, keep us updated. here's a look at how we got here. laura ling and euna lee were arrested after crossing into north korea from china, they were working on a report for current tv on human trafficking along the border. in june, the pair were convicted
for illegally illegal entry that is and for quote hostile acts. in a closed trial, they were sentenced to 12 years hard labor. we are also keeping an eye on three americans now being held in iran. this morning, iran confirms their arrest and accused the west of using their case as propaganda, a newscaster on state television cast down on the american claims they were hiking in iraq and strayed across the unmarked border. so who are these americans? and why were they in such a volatile area? cnn's dan simon has a closer look. >> reporter: shane bauer, graduated with honors two years ago with a degree in peace and conflict studies. >> all about change are sitting on the edges of our chairs. >> reporter: sandy knows bauer from his work as a freelance journalist. he takes photos and writes articles on middle eastern issues. she says bauer was fluent in
arabic and left the san francisco bay area last year for syria. last week, she says he pitched a story on elections and iraqi, that's apparently why he traveled to that section of iraq before allegedly crossing into iran with two others. >> i think this is a very experienced traveler, a backpack kind of traveler, not somebody who would go to the ritz carlton, somebody who would go to the hostile, who would operate on a shoe string as many freelancers do. >> reporter: he was known to be dating sara shroud, she described herself as a teacher, activist writer from california currently based in the middle east. says she loves fresh broccoli and anyone who can change her mind. the third detained hiker, berkeley grad grew up in elk part, pennsylvania, also known
for his love of travel and learning. >> fiercely intellectual. voracious reader, and josh and i would have conversations like no one else. >> the fourth hiker, stayed bind in iraq, his grandmother says he was sick. three americans known for their sense of adventure, now getting more than they bargained for of. because the u.s. has no formal relations in iran, swift diplomats are now trying to secure their release. dan simon, cnn, san francisco. australia's federal police say they foiled an alleged terrorist attack, the target, a military base. four suspects were arrested in early morning raids in melbourne, and another man in custody is being questioned. police say if the alleged plot had been carried out, it would be the most serious terrorist attack on australian soil. >> the men who were planning to carry out the suicide terrorist
attack on a defensive establishment within australia involving an armed assault with automatic weapons. details of the planning indicated the alleged offenders were prepared to inflict a sustained attack on military personnel until they themselves were killed. >> police say the suspects are all australian nationals with ties to an al qaeda group in somalia. this hour in raleigh, north carolina, seven terrorism suspects are due in federal court. last week the men were charged with plotting to kidnap, maim, and kill people in a foreign country. federal investigators say some of the men traveled to israel and pakistan among other countries to plot their "violent jihad." an eighth suspect is still being looked for. the debate starts today in the senate over president obama's supreme court nominee sotomayor. she's expected to win approval. despite vocal opposition from several republicans. the latest is john mccain.
>> an individual who does not appreciate the common sense limitations on judicial power in our democratic system of government ultimately lacks a key qualification for a lifetime appointment to the bench. for this reason and no other, i'm unable to support judge sotomayor's nomination. >> mccain joins fellow arizona senator john kyle in opposes sotomayor, both texas republican senators are on the record saying they will vote no, but as many as six republicans say they'll break with the party and support sotomayor. president obama turning 48 years old today, it's a working birthday, at 11:05 eastern, he'll meet with the national commander. and at noon, welcoming senate democrats for a white house lunch. they're going to be talking a lot about the president's birthday wishes like health care reform and more funding for the cash for clunkers program. then later, the president will meet with vice president joe biden in the oval office.
yesterday, in fact, we asked for your thoughts on president obama's drop in the ratings, here are a few of them. julie wrote this to us. i do not know if i can rate the job of the presidency, it is one of the toughest jobs in the world. i will say, however, that i am very disappointed by the stimulus plan. and then marcia tells us this, the president is trying to do exactly what he promised. the lower ratings are a result of the gullibility of the american public, they listen to tv ads steady of getting the facts. we from many of you through the hot line. >> caller: i think your president's ability to run the country is below his ability to throw a baseball. >> i think president obama is doing great for the country. the republicans are trying to pull him down with their propaganda. false propaganda. >> i can't wait until they get a bumper sticker that says don't blame me, i voted for mccain. >> our president is doing a fantastic job considering what
he -- the hand that he was dealt and i pray you all have a little more patience. >> so thanks very much, everybody, for your comments, you can send those to us at cnn.com. president obama marking his 200th day in office this week, in fact. and now is your chance to grade the job he's done so far by logging on to cnn.com/reportcard. see the results from cnn's national report card thursday night 8:00 eastern. the opening bell on wall street, less than half an hour away. august is off to a pretty promising start with the dow hitting a nine-month high yesterday. did you know that? we'll get the trend to continue today hopefully we can make that happen. let's go to christine romans live in new york. can you make that happen? >> i can make that happy, heidi. and unfortunately, we're both wearing red. i don't know what that will say about the stock market. it could take a breather very easily because it's such a big
run. and some of you, you might be scratching your head saying wait a second, i'm starting to pay attention to this and the stock market is up. it is up. you're clawing back some of your losses. last year was a pretty devastating financially devastating year for millions of americans and in this spring has been a rally here that's going to claw back some of those losses. let's take a look at the s&p 500, it's going to start today above 1,000, closed there yesterday for the first time since november. now move back ward that 676, that was in march, that was a 12-year low, a 12-year low and move further to the left of your screen and you can see what a wild ride that was going to be. that bottom from 676 to 1002 is about a 40% run for the s&p 500. it was the best july since 1997. so you're putting together some pretty significant stock market gains here. again, clawing back from your
losses, but you've got a long way to go before you get back to where you started. why is this happening? manufacturing surveying showing signs of life, housing market deeply depressed but signs of life in terms of sales and some sales of very depressed and foreclosed homes, earnings, construction numbers, every now and then there's a little clue that tells us maybe we're not in a free fall anymore, but someone has pulled the statute and you're floating down instead of plummeting down to earth. >> i just want to know my chute's been packed correctly. >> and i asked one economist and i said you still don't know if you're going to break your bones if you land on the ground. but he said, you already broke your bones. i think that's important to realize when there's recovery, there are many people who are saying it could feel pretty grim for most of us for sometime. still have foreclosures, still a jobless situation, but if you look in your 401(k) statement, you're going to see clawing back
from some of those losses, not all of them, a long way to go, but clawing back from those losses. >> jobs report later this week. >> looking for about 9.6% on that, but most economists tell me it'll keep rising from there. >> christine romans, thank you. >> you're welcome. terror suspects in america's heartland. it could happen if people at guantanimo bay are relocated there. a closer look at two options. also severe weather expected to break out, already doing so, actually, this morning, we'll talk about where that's headed. plus a little bit of action in the tropics. the "cnn newsroom" is coming right back.
as you know, president obama vowed to close the prison at guantanimo bay, but what about the detainees, jean meserve says one possibility is to house them and try them under one roof. >> reporter: the possibility that guantanimo detainees might be headed for the military prison at ft. levinworth has kansas officials in an uproar.
>> places a bulls eye on this community. >> this is a bad idea. >> reporter: administration officials say the maximum security prison in standish, michigan, are being considered as possible multi-purpose destinations for detainees that could contain courtrooms for both federal criminal trials and military commissions and house in one place detainees now being sorted into three groups. those being held for trial, those being indefinitely detained, and those cleared for release, but without a country to take them. in standish, michigan, where the unemployment rate stands at 24%, the maximum security prison is slated for closure. some local officials support using it as a detainee facility to preserve jobs. but michigan congressman disagrees saying turning michigan into a terrorist penal colony is not the way to improve
the situation. for now the white house is dodging the argument. >> well, i don't know to the degree to which they've gotten into specifics and certainly no final decisions of any sort have been made. >> reporter: housing and trying most of the detainees at one location could reduce costs and avoid the risk of moving suspects for trial. on the other hand, moving prosecutors and judges and forming a jury pool could be a challenge, but probably nowhere near the challenge of overcoming local opposition. jeanne meserve, cnn, washington. we've got some severe weather to talk about. rob marciano joining us now. i guess moving toward st. louis or away now from st. louis? >> kind of just north of st. louis, but they're probably going to get clipped here before too long. check out the weather that rolled through parts of the south yesterday. there weren't many thunderstorms across the southeast, but the ones that did pop up, like this one in savannah, boy, dumped a whole lot of rain in a hurry and folks had to be rescued from
their cars. rough weather there, shouldn't be quite that bad today, we do think most of the action is going to be as you mentioned across st. louis and the corn belt. getting into the ohio valley, as well. st. louis, louisville, indianapolis, manuel bartschville nashville may get clipped. here it is on the radar scope across parts of kansas city heading into the st. louis area, and as that -- pretty good line ahead of st. louis and also through covington if you're traveling through cincinnati, be aware of that. here's the latest live picture from st. louis, not too shabby, that thunderstorm activity looks like it's moving to the north of you, but still, you are under a severe thunderstorm watch here for the nebraska little bit. 10 degrees in expected in dallas, heat building up across parts of not only texas, but the southwest, phoenix, your hottest july on record and doesn't seem to want to stop. that monsoon that typically
keeps you warmer this time of year isn't cranking up the way it should. 80 degrees expected in new york city, and 93 degrees in atlanta, georgia. and the next half hour, heidi, pacific, this is a tropical storm enrique, shouldn't bother anybody too much, but there's percolating in the atlantic. and it's been a very quiet year of hurricane season, that may change in the coming weeks. >> very good, rob, thank you. health care reform, you have questions, dr. sanjay gupta has answers, his insights coming up. "the insider."
health care reforms, how would changes made in washington affect you? you want straight answers, and chief medical correspondent sanjay gupta's here now to deliver them. it's great you have all of the answers. >> a lot of pressure. >> there's so much ground to cover. with all of this, because there's still so many questions, obviously. in fact, here's today's question. let's listen. >> caller: hi, my name's cindy and i'm calling from covington, georgia, dr. gupta, my question is, why doesn't the government make mandatory prices for doctors and their services?
that's the problem they all charge outrageous prices and vary from place to place. will that change in the new plan? >> it's a great question. first of all, cindy, you're absolutely right. the sort of varied pricing across the country, you can have an operation in one state cost $6,000, $17,000 in another state for the exact same operation and that's under medicare. there isn't a lot of consistency already. what we're hearing is a lot of details. one is, there probably would be a cap on all out of pocket expenses, co-pays, deductibles, and also preventive care would be fully covered out of these bills coming out of committees at this point. but again, the details just aren't nailed down. people talk a lot about this public option, i think it's worth pointing out, in respect to cindy's question the idea of a government-run plan that people may be able to buy into if they qualify and they have certain prices they set, that's going to influence what private insurance companies reimburse, as well, you have one that's
competing against the other, and they have a couple of specifics when it comes to how they're going to set those prices with respect to medicare. no payment rates lower than medicare and no rates higher than the average rate of all plans in this public/private exchange. i think the best way of characterizing this cindy and heidi, there's not going to be set pricing but probably a lot of influence of pricing overall because of what's happening with this potential public option. >> got it. well devil's advocate here now. how is this proposal being received exactly? because a lot of critics are saying that the private company, as you well know won't be able to compete against the government plan. you'll have this massive whopper of a plan and a bunch of little guys. >> they're saying, look, if you have a public option out there, that is sort of on the backs of taxpayer dollars, it's going to be able to unfairly compete against private insurance companies and maybe eventually crowd them out. there's a couple things worth pointing out when it comes to
that. not everyone's going to be able to buy into the public options, you have to qualify to do that. a couple of criteria, your premiums have to be greater than 11% or 12% of your income, if you're making $100,000, unless it's costing $11,000 or $12,000 a year, you probably won't qualify. not everybody's going to be able to get in. and you can't have access in any other way, through a spouse or some other person upon whom you're dependent. it's not -- it may not be quite the sort of flood of people, heidi from the private sector to this public option. it's august 4th today, we'll talk in a couple of weeks again and this may all change, as well. so this is how things seem to stand now. >> well, we appreciate you being here as the insider, definitely, i know you're getting a lot of calls and questions. >> glad we could bring it to you. >> thank you. our senior medical correspondent, sure do appreciate that. meanwhile, need to get this out to you. breaking news we are hearing now. we've been reporting to you that former president bill clinton is
in north korea. we are just learning this morning, we are also now learning and here is a brand new part of this that he has delivered president obama's message to north korea's kim jong il, that message has been delivered, whatever it is to north korean president kim jong il. of course, we are talking about president bill clinton's mission to help in the situation of laura ling and euna lee, the two american journalists that have been taken into custody, if you will, they were charged with going over the north korean border from china, this happened in march, they have since been sentenced to 12 years of hard labor. there are still obviously a lot of questions coming from america, and, of course, the women's family. the newest information is president clinton, former president bill clinton has, in fact, delivered the message of president obama to kim jong il of north korea. we'll bring you any updates
right here in cnn. the recent rally on wall street has pushed stocks above some threshold levels, the nasdaq topped 2,000 yesterday, the s&p 500 topped 1,000, and that hasn't happened since last fall. susan lisovicz at the new york stock exchange with a look at what to expect today. what do you think, susan? >> expecting a little giveback and that's not surprising, heidi. considering this summer's sizzler that we've been enjoying, and, you know, the mild isn't too bad considering the threshold you were talking about with the nasdaq at 2,000, the s&p 500 at 1,000, these are -- these are levels we haven't seen since last autumn. so basically the street's looking for more upbeat economic signs. that may not come until the top of the hour when we get a report on pending home sales. sales are expected to rise in june for the fifth straight month. so that indeed is encouraging from the housing front.
in the meantime, we've got another report about an hour ago showing our poor wallets taking another hit. personal income tumbled 1/3 percentage, the biggest drop in four years, not surprisingly spending remains tight, spending rose slightly, but largely because we spent more in gasoline as prices went up. corporate news, we'll mention quick, pepsico buying the biggest bottlers, nearly $8 billion, the bottlers have rejected an earlier buyout offer. marble entertainment reporting profits down slightly from a year ago, but still better than the street expected. the company benefitted from growth in the film production division, primarily its strong "iron man" dvd sales. a portfolio of more than 5,000 characters including spiderman and x-men, also raised the outlook for the year. ringing the opening bell -- >> i know.
>> tell us then. >> the it's coming out this friday, right? >> that's why hasbro is, in fact, ringing the bell. the executives, the name of the movie, heidi, i know you have two small boys "gi joe" the rise of cobra. >> i played with gi joe when i was little. i have a friend in this movie too. we're looking forward to seeing it. >> gi joe for a whole new generation of viewers and children still out there and hasbro's very glad that it is. i don't have hasbro up, but we're feeling a little bit of giveback in the first minute of trading. >> appreciate that. the u.s. army looking for a few good men, some qualified women and a lot of future officers. army leaders now aiming higher for recruits and raising the offers for those willing to sign up. we'll get the details from chris lawrence now.
>> reporter: the army needs officers. and it's launching the first ever ad campaign to recruit them. >> put a lot of thought into it and i'm not one to be a part of the army. >> reporter: the goal, change the minds of college students like these. >> then i heard the commercials and then i thought about it more, but it still wasn't enough. >> when they thought they were seeing just another army ad, they would shut it off immediately. >> reporter: so ad agency designed a new campaign targeting ambitious students and creative thinkers. >> they are mentors, managers, and decision makers. >> reporter: some feature civilian corporate executives with experience as officers. >> we want to let people know that you don't have to stay in for 30 years and become a four-star general to achieve great things. >> reporter: the army has a goal of getting 90% of the enlisted soldiers with high school diplomas, it's missed that goals three years straight and now the pentagon is adding more than
20,000 soldiers next year, meaning more than ever, the army needs highly qualified officers to lead them. >> the environment is different today. >> reporter: major general arthur bar tell says today's battlefield is so complex, even junior officers are asked to make important decisions instantly. >> we need leader who is have the ability to look at a problem, solve that problem, and in a time-constrained environmentment. >> reporter: the army says it's not in crisis mode yet, but needs to do a better job of marketing the product the same way it sold being enlisted. former president bill clinton on a mission in north korea and he has just delivered a message from president obama. also, two brothers separated 70 years ago now getting to know each other for the first time over the internet. [ female announcer ] arthritis targets your body where it's weak. where it's vulnerable. ♪ tylenol arthritis works with your body
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korea's kim jong il this morning, two american journalists being held in a north korea prison. clinton delivering a message to the north korean dictator. more now from beijing. >> reporter: the former u.s. president touched down in pyongyang on board a private unmarked jet and was warmly greeted by two senior government officials and a young girl with flowers. expectations are going that mr. clinton will meet one-on-one with north korean leader kim jong il, a meeting which mr. clinton wanted to have back in 2000, but never happened. >> for him, this is an important fulfilling of an unfulfilled mission and for kim jong il who wanted him to come when he was president, it would be the height of rudeness not to receive it. >> reporter: the turning point in all of this say analysts was when washington dropped the demand for the journalist laura ling and euna lee to be released on humanitarian grounds instead saying they're hoping for amnesty.
>> the two journalists and their families have expressed great remorse for this incident. and i think everyone is very sorry that it happened. what we hope for now is that these two young women would be granted amnesty through the north korean system and be allowed to return home to their families as soon as possible. >> reporter: analysts say enlisting bill clinton as a high-level envoy is a sign that most of the ground work for a deal has already been done, in other words, you don't send a former u.s. president all the way to pyongyang to come home empty handed. >> i don't think he's going to sit down and engage in horse trading with the north koreans over the terms under which these women are going to be freed. >> reporter: it's hope the former president could be heading back to the united states with the two women in a matter of days. cnn, beijing.
secretary of state hillary clinton in nairobi, kenya today, her first stop on a seven-day trip. she will visit trouble spots to the dominican republic of the congo and nigeria. in kenya tomorrow, she will speak at an economic forum for trade. she is expected to speaking about the commitment to making africa a priority in u.s. foreign policy. rob marciano again from the severe weather center. keeping an eye on the storms sort in the midwest. >> a couple of clusters, looks like it split into three now. through kansas city, looking at some thunderstorms that are rolling through that part of missouri. or kansas, depending on which side you're on, but most of it is heading down towards the st. louis area. so we're watching that. and as that comes to pass in this severe weather watch box, especially north of st. louis and through springfield, see
that little bow echo, indicates some strong winds like into that wind. so that thunderstorm watch is in effect until 1:00, i believe, local time, and then covington, kansas city, looking at this strong line of thunderstorms. pretty active day so far, and we haven't gotten into the heat of the day. speaking of the heat, phoenix mentioned earlier, you've seen your hottest july on record, and the heat continues, excessive heat warnings out for phoenix and southwestern parts of arizona and southeastern parts of so-cal, temperatures could get up into the 110 to 115 degree mark, and in texas, upper 90s to about 100 degrees or so. hey, this heat is not boding well for folks in the northwest and through british columbia, as well. we have this video coming in. fires have been a huge problem already. since april, 2,200 fires, over 172,000 acres burned.
and a problem with a couple of these fires, one dangerously close to where they're going to have the olympic winters there in less than a year's time. so they're burning down a little bit. a lot of heat and also dry lightning's been a problem in the past couple of days. it'll continue to be a problem the next couple of days. they'll continue to struggle in the next day or two. >> wow, keep our eye on that too. sure do appreciate it. rob, thank you. so are you a distracted driver? well, the obama administration is taking on texting while driving. in fact, later on this morning, transportation secretary ray lahood is expected to announce details of a summit to be held next month. but we are blogging about it right now. we'd love if you'd be able to log on to cnn.com/heidi and put your comments on here because we want to know if you were a member of this panel of experts talking today, what would you have to say about it? there are some ideas out there talking about even maybe banning the whole idea of texting while
driving. there have been some studies that have been done, and we've reported about them here as to, you know, how long you look down off the road while you're texting, i believe it was virginia tech that did a really interesting study on this saying that the average length is something like five whole seconds, that's a length of a football field. again, i want to know what you think about it. that is banning or not banning texting while you drive. cnn.com/heidi is where you blog or you can always give us a call to the hot line to heidi. the recession shows signs of easing, but you need to save money right now. today's target, trimming those bank fees, it may be a little bit easier than you think. taking its rightful place
fees are a big moneymaker for banks, but that doesn't mean you have to pad their bottom line. personal finance editor gerri willis with how you can save money by fighting back against big fees. i love the sound of this, gerri, you call and tell them i'm not paying? >> it's where you get the loans. we talk about the perils of payday loans, they carry interest rates of 400% to 5,000%. yeah, right. now there's a new payday-like loan being offered by credit unions and we want you to know about this. according to the law center, these alternatives offer effective interest rates, if you roll in the fees of 455%. keep in mind, by law, they can't charge you more than 18% on one, our advice here if you're really
strapped for cash and need money immediately, negotiate a payment plan with your lender, stay away from these short-term loans that just keeps you in debt. >> yeah, yeah, yeah. well, you say there are fees for unemployment benefits too, right? >> that's right. instead of getting checks, paper checks for your unemployment benefits, prepaid cards are getting distributed in about 30 states and fees on these cards for just accessing your money range from 40 cents to a high of $3 per transaction. now, even some banking services that are normally free like checking your account over the phone or not using your card, inactivity, that's costing you money too. if you have one of these cards, make sure you read the fine print and you can skip this altogether by choosing the direct deposit unemployment pay option over the prepaid card and have your money just directly deposited into your regular bank account. find out if this option is available to you, far better than taking the prepaid card. >> sure sounds like it. what's being done about overdraft fees?
some of these are exorbitant. >> heidi, you know, overdraft fees are fees the bank charges if you don't have enough money in your account to cover a transaction and they pay that transaction, about 75%, 3/4 of u.s. banks enroll people into these programs and then charge you $35 to cover any overdrafts, the fed is considering whether to crackdown on these things, it's triggered if you use a debit card forcing the banks to allow consumers to choose to opt in or opt out. and representative maloney, she's introduced legislation that would require you to be warned before you overdraw your account. in the meantime, make sure you have access to your checking account online to keep tabs on this and you don't get caught overdrawing, link your savings and checking accounts together so you have money to cover any overdrafts. but if you are not on guard right now you're paying $35 a hit. >> what are they going to do? give you a quick phone call or
e-mail or something to warn you? >> well, maloney wants some kind of -- maloney wants some way to warn people ahead of time. so that they know that you're overdrafting. that's the problem, you go ahead, spend the money, you may not be aware you're overdrafting, you could easily build up hundreds of dollars in fees that would be avoidable, perhaps, if you knew what the problem was. >> very good. gerri willis, thank you. >> my pleasure. turning children into walking bombs. we're inside pakistan with a group of boys who say they were kidnapped and trained to kill.
children kidnapped, beaten and then brain washed by the taliban and stan grant talks to a group of boys in pakistan to see they're victims of a recruiting program. >> reporter: pakistan's military says these are the lost souls of the pakistan's terror. the boys told me they were stolen from their families, abused and beaten by the taliban. the first day they beat us, and then they made us exercise. they made us run and told us you will wage jihad.
they told us that the army is against the koran and wage jihad against them. the pakistan military gave cnn limited access to these boys. the army says they rescued them during heavy fighting. their identities protected because of the possibility of retribution. the youngest is only 13. we can't independently verify their stories, but doctors say they have no doubt. the boys themselves each told me how they were kidnapped by the taliban. "i was coming from the shop to my house, i had some stuff with me. they said, put your stuff in the car. should we drop you in the square or in the village? they blindfolded me and pot hand on my mouth.
other boys said they were snatched working in the fields. in militant camps they were being trained to be suicide bombers to do the taliban's killing. >> would you kill for god? >> reporter: yes, he says. in the right circumstances or the wrong circumstances, would they kill? they wouldn't feel it. they wouldn't have an empthetic response to what's happened. >> reporter: these boys so badly damaged by the experience, it's difficult to know exactly how they are feeling. but doctors say some psychotic, some psychopathic and some pose a very real risk. >> his statement to the army is that he would have committed and if he -- >> reporter: this doctor tells army chiefs they are just the tip of the iceberg. after talking to the boys, she
believes there are ospably hundreds of others just like them. are the boys brainwashed? >> yes, of course. they are brainwashed against you and me. >> reporter: the army hopes the boys will one day be able to be ru rehabiled and returned to their families. the doctors say they should be under close surveillance at least for the next decade. >> these children, except for two, don't give me any indication, if they're going to gauge their future on the perspective of today or where they are. that doesn't look very rosy, does it? >> reporter: but she does not blame these boys. they are the innocent victims, all they are left with are the voices in their head. voices of the taliban commanding them to kill. stan grant, cnn, pakistan. an awful lot going on this
morning, that's for sure. cnn crews are in place to bring it all to you. start with jill doherty and the very latest in the situation in north korea, jill. >> on a delicate, diplomatic mission. will the two american-korean journalist comes home. i'll have that at the top of the hour. i'm susan lisovicz at the new york stock exchange where it is a double whammy for your wallet. personal income tumbled. heidi, i'll put more of that in perspective in the next hour. i'm poppy harlow in new york and first chrysler and then general motors and detroit's public schools headed for bankruptcy. we are not kidding. an unprecedented move for a school system. >> all right, guys, thanks so much for that. we are staying very much on top of former bill clinton being in north korea. we'll get you the very latest in just a moment here. )%)%)%)%)%)%%
whether or not there was a president obama -- >> when asked aboutthat report he said, that's not true. >> really. >> did not elaborate. we should tell you that reporters went to great lengths, including myself, to try to press him for some clarity on the statement that the statement that the white house released earlier today talking about how this is a solely private mission by former president bill clinton. he said look, guys, obviously, he understands the interests. he will not have anything to add to this statement for a while. this is the extent of it. it is a little sensitive. more to say on this later on. robert gibbs being very coshes and telling us about that report of a message being delivered from former president clinton to
north korean robert gibbs saying flatly, that's not true. >> any way to know, in fact, former president bill clinton has, indeed, met with kim jong-il. >> we don't know that. the white house has not confirmed anything regarding any of those reports. we're hoping that later on today based on what robert gibbs has told us that we will get more information. i asked him, look, when all things are said and done when things arant resolved the way the u.s. wants to see it and the journalists are freed, could we learn more about the president's involvement and that's when he said, hopefully we'll have to more to say later on. really, not a lot of information, but significant here. not sure how helpful the statements from the north koreans are going to be if, in fact, that is not true. what that might do to things. but robert gibbs saying flatly denying that report out of north korea today. >> important to remind everyone, one reason why this is so
sensitive, obviously, in the very beginning of all this when laura ling crossed the border according to the north koreans and were taken. the white house saying we need to be very, very careful here because we have the issue of nuclear disarmorment. >> that is something that should be repeated. this is a delicate balancing act for the obama administration. you're absolutely right. what the administration said, this is a skeperate humanitarian issue it is separate from the nuclear issue. at the same time, we have seen north korea since then fire off ballistic missiles and a nuclear test and most recently we saw that really fascinating rhetoric between secretary of state hillary clinton and the north koreans, all kinds of names, really, being thrown out there. so, it's just been an interesting dynamic to watch here when you've got not secretary clinton, but her
husband now going on what the white house is calling on a solely private mission. heidi? >> all right, our elaine quijano really, really working the story. we appreciate you pressing robert gibbs on all of this. meanwhile, cnn foreign affairs correspondent jill doherty has been watching the story, as well, she joins us now from washington. jill, what are you getting and what is the latest here? >> well, from the state department side, there really is not a lot that is coming out. this really is very, very delicate. and while the president is on the ground, as you heard in that statement by robert gibbs, they don't want to say anything that could tip this because it has been a very emotional standoff, as well as, you know, political and military standoff with north korea on that other subject that seems to be overshadowing everything, which is the nuclear standoff. >> of course. >> anything personal. elaine was referring to some of the comments recently about
secretary clinton coming out from north korea. they don't want to say anything that could be misconstrued or that would derail any of this. >> absolutely. so, let's fast forward a bit, if we could. again, keeping in mind how clearly sensitive and delicate this is. if the journalists do go free, what would north korea get out of it, what does the u.s. get out of it? >> north korea, potentially, could get at least some points for bringing the journalists, for coming to the decision that the united states was hoping that they would free those journalists. you know, score one on that point. now, the second thing, though, is this mission is not meant to sit down at the negotiating table and start talking about nuclear weapons. so, the obviously question would be, though, with this opening, if it does happen and bringing those journalists out, could that help on the other side of the equation with the nuclear standoff. now, for the united states,
certainly, they get u.s. citizens out, that is a big bust. the shadow of having those journalists in a sense, which could have been used for any type of purpose out would have been very good for the u.s. but do they get anything, do they get what they really want which is north korea back at the negotiating table. we don't know that yet. >> jill doherty, let us know if you want us to come back to you. appreciate it. very close eye on iran where three americans are now under arrest. this morning iran confirmed their arrest and confused the west as using their case as propaga propaganda. a newscaster on state television doubt claims that they were hiking in iraq and across the unmarked border. iran says an investigation is under way. secretary of state hillary clinton in nairobi, kenya, today. besides kenya, she will address
trouble spots from somalia and zimbabwe and nigeria. in kenya tomorrow she will speak at an economic forum. clinton is expected to discuss the president's commitment to making africa a priority in u.s. foreign policy. this hour in raleigh, north carolina, seven suspects are appearing in court. the men were charged with plotting to kidnap, maim and ki ki kill. they are still looking for an eighth suspect. the senate in session. today debate the nomination of judge sonia sotomayor to the supreme court. we saw the senate judiciary committee pass it by a 13-6 margin, almost exactly along party lines. pretty close to the same story with the senate.
don't count senator john mccain among them. >> though she attempted to walk back from her long public record during her confirmation hearings, judge sotomayor cannot change her record in a 1996 article in the suffolk review "a given judge or judges may develop a novel approach to a particular set of facts or legal framework that pushes the law in a new direction." this is exactly this view that i disagree with. >> the final senate vote is expected to be held before they go on the recess at the end of the week. she could be sworn in as the next supreme court justice by friday.
we've seen an open to the negative by nine points or so. nothing big yet but that average resting above or just below 9300. so, we will continue to follow those numbers for you very closely. possibility of tornadoes. is that right, rob? >> kansas city to ohio, one severe thunderstorm watch that is in effect here for the next couple hours in through eastern illinois and western parts of indiana. traveling through cincinnati, hub for delta for sure. the heat building across parts of the west, southwest and phoenix back through the interior valleys and looking for temperatures to rise to about
110 degrees and it's been the hottest, the hottest july on record in phoenix and that certainly has caused things there. they haven't gotten the monsoon that they normally get. temperatures into the 90s, potentially even warmer than that. live shot from our friends in tulsa. you are under an excessive heat warning for today with temperatures expected to get to about 99 maybe 100 degrees. nothing but clear skies there and maybe a little spider on the lens. hi, guy. >> he looks mammoth. >> that's a good-looking spider. >> can you identify that, mr. meteorologist? >> he looks poisonous. let's get him out of the way. 87 the high for chicago and point out a couple things that happened yesterday. this is definitely, this is what we call a spider, spider drowner
in savannah. torrential downpours yesterday. this one, obviously, stranded a couple motorists. they actually had to get out of there by being rescued. i want to show you this satellite picture. we had to go out pretty far here. here's the atlantic ocean and this guy right here coming off the cape verde islands there near africa. national hurricane center thinking it will develop into something, if so, the first tropical storm of the season. we haven't had one named storm yet. this is easily the latest hurricane season start in the last decade and it has been rather quiet and i should mention this that the colorado state has just put out a press release. they have lowered their forecast for the year. i would do the same thing if we ever had zero. >> very intuitive. nothing is going on, let's go
back to the spider cam. >> i think we scared him. i hear spiders are very sensitive. we know how they feel. kotv, thanks for that and keep the spiders off the lens. >> very good. we would have never gotten that if we planned it. >> never. >> rob marciano, thank you. meanwhile, are you a distracted driver? the obama administration is taking on texting while driving. details of the summit to be held next month but we are blogging about it right now. logon to cnn.com/heidi and tell us what you would say if you were a member of this panel of experts. should texting while driving be banned or not? you can also give a call to the hotline to heidi number. 1-877-742-5760. in maryland, a gruesome case of child pornography and a warning that could take a parents' breath away.
the videos that have not yet been identified. >> anybody in this kind of business in public service, we see a lot of very sick things and this is sickening. >> pretty disgusted about it and i couldn't believe that they did that. >> it is still not exactly clear how the couple we just showed you came into contact with the children. both worked as emergency medical technicians with an ambulance company. next hour in the "cnn newsroom" a police spokesman joins t.j. holmes on how you can track child porn. stick around for that. a deputy in broward countifulful under arrest today accused of insulting immigrants. one ofalleged victims just 17 years old. charged with 14 counts of sexual battery and also charged with faums imprisonment and stalking. >> he searched out victims and
actually sexually battered his victims while he was on duty. i can't think of a worse betrayal of public trust. >> they're not going to tell anybody because they know they don't have any legal support for this type of situation. >> he is a seven-year veteran for the broward county sheriff's department. 40 years ago this week, the world first learned the name charles manson. the man behind a string of especially brutal and gruesome killings in hollywood. ted rowlands takes us back through the murders, the manson family and the chilling picture of the man today. >> reporter: the psychopath who carved a swats cuinto his forehead is 74 now. time has changed his face, but peer into the eyes, they are as dark and penetrating as they were when the world first met charles manson. 40 years since the mad man and his disciples slaughtered seven people and it began right here
on celo drive. you can see this security gate. behind it, there is a mansion. but in the 1960s it was a smaller home. home to two rising hollywood stars. director roman polanski and his wife, sharon tate. tate was young and beautiful and also 8 1/2 months pregnant when the killers arrived on august 9th, 1969. on manson's orders, four members of his cult or as the family they were called went on a murder spree at the home with knives and guns and before leaving they left a message on the front door, the word pig. the scene was horrific, but there would be more to come. the next day manson accompanied the group here to the film executive and his wife except for this gate and some remodeling, the house looks very much the same when the manson family entered the property and
tortured the couple before killing them. again, more cryptic words in blood like rise. >> i think the manson murders were the iconic crimes of the 1960s. they incorporated everything from the sexual fascination of manson with his many women followers to the beatles music of the day, the outlandish courtroom circus that the trial became. >> reporter: manson was a 5'2" maniac a man who spent half his life behind bars before moving to california where he portrayed himsis a hippy and musician. women who traveled with him across the state until they moved into an abandoned building outside los angeles. what was behind the murd snrz. >> manson said he did it to try to start a race war. his theory was that blacks would win in a race war against the whites and they would be unable to govern and he would emerge
and be able to take over. >> reporter: manson and four of his followers were given the death penalties. california abolished capital punishment. over the years manson turned his parole hearings into a circus. he will likely die in prison afate other members of the so-called family want to avoid. susan atkins was denied parole last year but is up again next month. leslie is also vowing for freedom. this is what she said in 2004. >> i was raised to be a decent human being and i turn under to a monster and i spent these years going back to a decent human being and i just don't know what else to say. >> reporter: ted rowlands, cnn, los angeles. >> be sure to tune in to "anderson cooper 360" tonight. comes your way tonight at 10:00 p.m. eastern. health care reform, insurance companies have become the villain in much of the
the debate over health care reform. a lot of bashing of insurance companies and how they respond when you need them most. we wanted to share one family's story and an insurance company employee who became their guardian. >> my oldest son, christopher, was in a car accident on september 6th, 2007. he was driving his car and lost control and suffered a traumatic brain injury with several broken bones. it was the scariest time of my life and to see him suffering like that was devastating. and then to also have to worry about his care and is he going to get what he needs? will they just send him home because we don't have the financial means. huge things to have to think about.
the insurance company sent me letters that chris could have something called a case coordinator. >> my name is pam hoyt and i'm a nurse care manager at healthnet. debbie is a mom of five children. she was frightened. she didn't know if he was going to live or die. she didn't know what sort of aftermath they would be dealing with. >> there was a sense of relief that this person was actually trying to help me. was not trying to help her company find a way out of all these expenses. >> i would help her to be in control of his medical life and their family life. >> she seriously is a friend
now. i would consider her one of my breast fends. she really was genuinely concerned about my son's recovery. the day my son christopher came home from the hospital, he is totally different than he is now. he just couldn't do anything for himself, at all. it was like having a big, heavy, 19-year-old infant. you know. he's combative. >> how you feeling these days? >> fine. >> going good? >> yeah. >> what point did you start remembering things again? >> yesterday. i remember yesterday. >> if you ask him straight on, chris, do you remember this? he'll say no. but if you're just talking about something that happened, he'll start talking about it with you because the memory's there. >> you've come a long way in a year. >> a whole long way. >> i was a vegetable.
>> chris? you're making me cry. >> don't cry. oh, please, don't cry. >> there were days when i just needed a shoulder, you know. and i knew i could call her. she's seen me through some of my darkest days. that's for sure. and on to some much better ones. >> photo journalist gabe ramirezes and christopher story in their own words today. well, to many, he is known as the father of supply side economics and now arthur is looking at the economics of health care reform and judy fader takes him to task. you can see it all right here in the "cnn newsroom." can a successful teen dating prevention program help control the problem in the u.s.? we'll ask one of the program's directors in a moment.
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good choice. only meineke lets you choose the brake service that's right for you. and save 50% on pads and shoes. meineke. all right, we'll stay on top of this story we're telling you about all morning. brand-new pictures right there to show you because we wanted to get them out asap here. we understand that he is there in order to negotiate the freeing of two american journalists. now, the white house is denying reports that former president bill clinton gave kim jong-il a message from president obama. that part they do deny. we heard that from our white house correspondent elaine quijano. that is the information we have on that. meanwhile, those americans have been held since march. they are accused of illegally going into north korea for some
sort of smear campaign. you see president clinton there across the table from kim jong-il and walking right down the same hallway right next to each other. all these pictures brand-new to us. just giving you a minute to look at them as we continue to report on this former news of the president being in north korea and speaking personally, face-to-face, with kim jong-il. jill, pretty amazing pictures we're looking at now. >> these are fascinating. pictures of kim jong-il are poured over by analysts in the united states. they look at every wrinkle in any photograph that comes out. trying to figure out what his health is like. he was very ill, he had a stroke, how is he looking? is he skinny? is he heavy, what is happening? now to see the former president of the united states right next to him, it's quite extraordinary to see that and it will be very interesting for former president
clinton and the people who are with him to give their impressions, eventually, of how kim jong-il looked. this is all very important because right now added to everything else that is going on, there is a succession crisis, some people would call or at least the progression from kim jong-il to his son, to his young son and all of this is creating this kind of instability in the situation. this is highly significant. and also i think, heidi, it is significant because it's happening very quickly. after all, president clinton just arrived not too long ago and already he is meeting with kim jong-il. that just doesn't happen by accident. >> i think it's interesting, too, jon voss was reporting earlier, it might have been mike chinoy who was saying in order for that to happen as quickly as
it has here, quite a bit of ground work already done in order for them to sit down like this. >> absolutely. we certainly know the name of bill clinton had been raised, you know, for a while as a possible candidate for going to north korea to try to get those journalists out. but he was really on the back burner. the names of al gore, former vice president and also governor richardson were named, but nobody really knew how it would work out. the north koreans, we understand, turn them down. they turn down richardson and they turn down the former vice president. apparently, they wanted bill clinton. why? because bill clinton, under his presidency, did get closer in relationship with the north. his secretary of state madeline albright went to north korea. the president himself did want to go shortly before he was out of office, but it never worked out. >> right. >> so, this is, this is probably a trip that bill clinton wanted
to make, maybe under different circumstances, but he is there. and it looks as if things are moving quite quickly and these would have to be very positive signs. >> certainly hope so. again, just reminding everybody that the white house is saying about this and that is, "this is a solely private mission that is being undertaken by the former president, bill clinton." but you can see for yourself, pictures of himself with the north korean president. jill, let us know, once again, if we need to come back to you. fascinating stuff. meanwhile, we'll move on for the moment. your wallet takes yet another hit. a new report shows americans aren't bringing in as much money these days. susan lisovicz at the new york stock exchange with the numbers on this. good morning to you, once again, susan. >> good morning, heidi. well, personal income fell 1.3% in june. that is a big drop. and in real dollars, it's $160 billion in lost income, just from the month before, but keep
this in perspective, heidi. 1.3% lost in june, there was a 1.3% jump in may. so, it wiped it out. back to neutral. that's right. what we saw in may was a one-hit wonder. stimulus boosting social security payments. but, there are reasons for concern, as well. the unemployment rate is rising and the average workweek is getting shorter. it's now at 33 hours. the labor department, in fact, says the workweek now is at the lowest level since it began keeping records in the early 1960s, heidi. >> so, how much will this impact an economic recovery as a whole do you think then? >> a lot, heidi. i mean, if we spent or see that our income is shrinking, our behavior changes. it's as simple as that. what we spend, accounts for more than two-thirds of what happens
in terms of the overall economic activity. we're already seeing spending hugely restrained because of the losses we're seeing the jobs market and also because of the losses we feel with our investments and also with housing. spending did increase slightly in june, but that's almost completely accounted for. higher gas prices, heidi. so, we're behaving differently these days. in terms of what's happening on the market, we're not spending there either on the second trading day of august, the dow, nasdaq and s&p 500 all slightly giving back, but considering the summer scorcher we have enjoyed, heidi. >> susan lisovicz, appreciate that. going to get to the car situation now. first chrysler and then general motors and now the detroit public school system could be headed for bankruptcy, too. poppy harlow has our break down from new york. very wide-reaching this whole automobile industry. >> i know. you're talking about kids and their education and don't we all
have a right to education, but the detroit public school system might make an unprecedented step and might file for bankruptcy protection and not the worst thing to happen to the school system like it wasn't the worst thing to happen to detroit and chrysler. a major issue is their deficit of $259 million. got a graduation rate there that is 58% in detroit proper versus 76% when you look at the state as a whole. you also have a host of corruption issues and the detroit school system. for all of those reasons, enrollment is shrinking in the public schools there. we spent a day in detroit with a very, very concerned parent. take a listen to what she told us. >> my daughter has never attended eany detroit public schools and it's because of this. as a concerned parent, my daughter would never go to a detroit public school as of now. where as i felt comfortable as a child going to school.
i don't feel comfortable allowing her to attend a detroit public school. >> she and her daughter are standing in front of what was her high school and since 2000 enrollment in detroit public schools has dropped by nearly 44%. but, heidi, when you compare that to the population decline over the same amount of time in detroit, you're looking at a decline of 3% of the population. you see parents fleeing to the suburbs to send their kids to school outside of detroit, heidi. >> how is detroit trying to turn things around? the the school year is upon us. >> they hired an emergency financial manager to cut costs and he doesn't have to answer to the school board and doesn't have to answer to anyone. his name is robert bob. you see him right there. what he has done, closed 29 schools in detroit since he took that position and plans to shut more. he's laid off more than 2,400 people, that, of course,
includes teachers and he is the one exploring this bankruptcy option for the school system and his office told us today, no decision made on that yet. we'll see what happens come september, but like gm and chrysler, what a bankruptcy would do is allow the school system to renegotiate its debt and tear up the expensive union contracts and give the system a fresh start. we want to know what you think. this has never happened in the history of this country. should detroit public schools file for bankruptcy? quickly, heidi, one person said they think the whole u.s. government should file for chapter 11. let us know what you think. >> yeah, okay, all right. poppy harlow, sure do appreciate that. want to get to this story now. a new study finds one in five teenagers in a relationship experience some kind of dating abuse and the impact could have a toll on teens later in life. so, could a successful dating violence protection program from
canada work here in the united states? it's a problem we've also seen here. david wolf from the center of mental health in toronto, canada, is joining me more to talk about that. let's first talk about that number. seems pretty high, does it not, that this many kids are affected by their boyfriend or girlfriend, i guess i should say, in such a physically abusive manner. >> those of us in the field kind of used to those numbers. it's a public health problem that affects so many kids that we all need to be a bit anoculated by it. >> where do they get it from? >> from entertainment to internet. it's all over the place. the whole shaping of how they view relationships today is based on the violence. it's an entertaining event. they take pictures of each other and it is growing worse. it's always been there, but today it is bigger than ever because they think this is what a relationship is supposed to be
like, it's supposed to be controlling, abusive and supposed to be tough and you only respect certain people. >> so, wait a minute, your research is showing definitively that this particular problem is happening because of hollywood? >> oh, no, no, no, i wouldn't say that. the kids today are just bathing in violent images about relationships. they're trying to learn how to relate to one another, especially in dating and romantic relationships and even peers. they don't have much to go by. they're trying to figure that out and they see tv shows, movies and everything and a lot of it is very abusive and violent. we're trying to teach them how to shape healthy relationships without relying on that type of value system. >> who exactly is we? are we talking about in the schools? where do parents fit in to all of this? >> the starting point is the schools for us because every teen needs some education or
unhealthy relationships around safety and choice and seat belt use and bicycle helmets. they need to know how to keep themselves safe if that there is drinking pressure and they need to know what skills are used. starts in the schools and parents are given information about it and kept aware of it, but teens today want to learn the stuff a bit separate from their parents. they just can't learn it at home. they need to teach it from their peers and communities. >> kids aren't learning from their parents -- >> they learned a lot already. but this is where they really need more information and the parents can't possibly give it all to them in this world that they are living in. they need other messages and before i think there was too much abuse going on anyway. to me, this is a point, a transition where teens can learn about healthy relationships to break the cycle so they don't continue to have it into adulthood.
it's not just about stopping violence, it's just about promoting certain relationships. >> dr. david wolf, we sure do appreciate you being with us today to talk about this problem. one in ten, i believe we said, are experiencing some kind of teen dating violence. >> you're welcome. meanwhile, are you a distracted driver? the obama administration taking on texting while driving. next hour, ray lahood expected to announce details of a summit to be held next month. we are asking for your comments on what you would say if you were a member of this panel? do you think texting should be banned or not so much? we have been getting plenty of passionate responses here. let's hear what you guys are saying. beth says this, no reason to have to text somebody while on the road. it would be a shame to have to live with the guilt of killing some family so you can text back lol to somebody's joke. and this one says, in addition,
the offense should be treated on the same level as dui, dwi, if not worse. and the government can ban it, but what good would it do? they made talking on your cell phone illegal in some states, but it doesn't stop anyone from doing it. the whole issue of enforcement. most cell phones have gps capability, these can be measured. if a gps shows speeds greater than ten miles per hour. interesting. we're taking all your comments. we'd love to hear from you guys. go to cnn.com/newsroom and click on heidi and let us know what you think. it's rumored he sketched his health care costs on a napkin. judy has her ideas. both of them coming up next in the "cnn newsroom."
a bangkok airways pilot is dead after crashing his plane to an old control tower. it happened in thailand. the plane skidded off the runway in stormy weather into the base of the tower. at least 37 people were injured, 7 of them seriously. rob marciano on storm watch this morning because, a lot of activity kind of right in the midal of the country, right? >> some thunderstorms producing torrentially heavy rain. by the way, heavy rain near the airport where that thai aircraft was trying to land. that may have been a factor. of course, we'll get further news on that as time goes by. but a tragic event, nonetheless.
severe weather heading across the midsection of the country. this severe weather watch box is in effect until 1:00 local time for severe storms. here we go. this cluster moving through eastern illinois about to get into indiana and south of indianapolis and indianapolis has already seen a fair amount of action today. cincinnati and covington sliding south into parts of eastern kentucky. that's where the thunderstorms are going to be. the other big weather story is going to be heat that will be building across parts of texas and oklahoma and also arizona. these are places that will see easily 100 degree plus temperatures. 100 in dallas and 94 in memphis and 93 degrees expected in atlanta. want to show you this video out of british columbia. they are battling some fires up there. record-breaking heat last week, dry thunderstorms this week. a number of fires. they have already seen 2,200 since april. they're battling on this one from the ground and the air
having the winter olympics scheduled for whistler blackholm. they want to get a handle on this very quickly. today conditions don't really improve. today, maybe a little bit tomorrow and then as we get closer towards the weekend. >> always hate to see that, yikes. it's rumored he sketched his laughter to curve on a napkin. now he outlines his thoughts on health care costs and judy fader has her ideas. both of them joining me in just a moment.
lawmakers may be able to take a break from washington, but they can't get away from the issues, especially health care reforms. the town hall meetings across the country, people want to know if they will be covered and how much it will cost. check this out, courtesy youtube. a woman in pennsylvania consulting arlen specter and kathleen sebelius. >> medicaid is broke. medicare is broke. social security is broke. and you want us to believe that a government that can't even run for cash for clunkers program is going to run health care?
>> health care rising, which has insurance companies eliminating pre-existing conditions with a lot of red tape. you have a president who has a system to improve the situation. at least take a look at the bill and then tell what you think. >> all right, so you can see on the top there what youtube said which is how can you manage something for cash for clunkers if you can't manage medicare and medicaid. that's some of what is going on at these town hall meeting wheres the democrats are going back, as well as republicans. arlen specter used to be a republican trying to talk more about what health care reform will mean for the individuals, people wanting to know more. they want to know how much it
costs. so, arthur is joining us right now. he has a study that he's done for the texas policy foundation, as you know, he developed the laugher curve which argues that government can maximize revenue by finding the optimal tax rate and now he's talking about the health care wedge. he is in new york. >> judy fadder is in washington. she has a bit of a different view on all of this. both of you, first off, thanks for joining us today. we sure do appreciate it. clearly, this is a topic of discussion for now and for quite some time. i want to begin with you, arthur. you actually say that president obama's health care plan will have a number of consequences. first off, and what we heard in the youtube video there, is what is it going to cost people and what will it do to the federal deficit in the long term? >> yeah, well, in the cost area, heidi, what i think will happen is by separating the customers or the patients from the doctors and from the health care on cost basis, you're going to see costs
rise dramatically, i believe. i think this will lead to a large underestimate of what the total cost of the program will be and that it will add to our budget deficits dramatically. i used the quote here, which is very appropriate, if you think health care costs a lot now, just wait until you see how much it costs when it's free. it's a classic program where costs will not be contained and you'll see costs going up a lot more over time and the deficit rising. >> in fact, looking at your report here. it says, according to you by 2019 that the deficit will actually go up by $286 billion and that inflation, medical price inflation will go up by actually more than 5%. judy, what do you think, is that true? >> no, i'm saddened, actually, that, arthur, welcome to health care. i think you've sadly misunderstood the health care market. our current and previous cbo,
congressional budget office directors have said that health reform is critical to getting our deficit under control and much of what i've seen you argue is that, that the private sector is more effective than the public sector. that's just simply wrong over the last several decades our medicare program has been much more effective on average and for every enrollee controlling costs and the private sector. the priveinaate insurance indus throughout the nation is highly concentrated. health reform is about getting the cost out of the system and how spending money not to cover us and actually get -- >> forgive me. don't you say the public sector has been taking on sort of the brunt of the health care costs here? >> the public sector is taking up the hardest patients to serve by serving older people and people with disabilities. they're the most expensive and what i said is that actually
they have, they have kept their costs lower than the private sector for many of the last, for most of the last several decades. but heidi -- >> one out of every $10 is being paid for health care out of personal pockets. >> that's true. one out of every $10 is. that's gone way, way down. it's really what it's done separated the consumer and the patient from the patient and the doctor and that's what happened. i do dispute judy's point a little bit. the projections going out as to what these costs will be, i think she's grossry underestimating the type of costs you're going to see from these programs. if you like the post office and the department of motor vehicles and you think they're run well, wait until you see medicare, medicaid done by the government. the single provider, i think, is a real problem. i know zee a disagreement here. >> one of our disagreement is
not only on what is much more effective but the nature of the health plan we're talking about. estimates are that the medicare will become more secure because we're going to save money and we will talk about building on the private system. nobody is talking about a single government program. so, i'm not sure where you're getting that. >> guys, we are running out of time. i would love to have you come on again and talk more about this because i do believe that there is more to talk about here, particularly in the paper that you're releasing today, arthur, health care wedge. the huge divide between the patientant and the provider. judy, your point, you say that president obama's plan will put us on a plan to fiscal responsibility reining down. >> the estimates are in and the industry has agreed that there are $700 billion, a third of what we spend in health care is wasted every year and the industry and the experts recognize that over the next ten
years with health reform, we can save $2 trillion. and $600 billion of that to the federal government. >> all right, arthur. i have to give you the last word here. >> thank you. i don't agree with her at all on that. when you look at these programs and if you look at the study, not only separates the consumer from the doctor, but also will lead to quality declines and also lead to access declines, as well. accessibility will diminish dramatically, as well. when they have budget problems, heidi, what i worry about, i worry about how they'll try to solve the cost problems. are they going to cut off access? i just have no idea. but i think it's a real problem. >> our bookers are on the phone right now setting up another appearference the two of you. we have a lot more to discuss. thanks so much, guys. thanks so much, guys. >> thank you. five co-workers are working from the road