tv CBS Evening News With Scott Pelley CBS July 31, 2012 5:30pm-6:00pm PDT
y: pelley: seth doane on the sharks of 2012. captioning sponsored by cbs this is the "cbs evening news" with scott pelley. >> pelley: good evening. t have just begun the fourth year of what has been a very mempy recovery from the great recession. d thatwe got some indications that better times may be near. for one thing, home prices were up more than 2% in may, and that's the third monthly increase. and americans saw their incomes rise half a percent in june, more than $500 per household on average. trouble is, americans didn't spend any of it. they cut spending back to a tiny fraction, about $11 on average. eeat's the problem, because consumers spending is 70% of our economy. we have three reports tonight, first dean reynolds in chicago on the fear of buying.
dean? >> reporter: scott, nobody feels this lull in spending more deeply than the nation's small businessmen, one of whom told us today he is looking for some ly areat the end of this tunnel. 1 july sales definitely are down about 10 or 15%. >> reporter: jeff pape sells athletic gear online and from eis 5,500 square foot store in elmhurst, illinois. >> what we see is that people aren't spending as much of they use to, people that might have spent 150 or $200 on stuff are >>w back to 60 or $70. >> reporter: to pape there's no akstery why. >> people that had jobs that were making $100,000 or $150,000 are now making 40 or $50,000 and $50,00as to affect their hatnding. >> reporter: that in turn affects and his work force, now wwn to two from four. oave you had to cut back on the things that you purchased for your store?
eporteventory? >> definitely we're working with our vendors to try and keep our costs as low as we can. >> reporter: you can see that ripple effect across the country. shopping centers reported just a 1.8% growth in sales over the last year. barely ahead of the inflation rate of 1.7%. suggesting the consumer mood at least remains in recession. >> they're definitely hearing all the news and all the politicians about what's going on with the recession and the ionomy, and the proof is in the pudding. >> reporter: one bright spot, scott, is back to school spending, expected to be up 14% ler last year. but the back to school season is traditionally the second biggest spending season of the year after the winter holidays, so it's not really considered a ,ood test of consumer intentions. >> pelley: thanks, now back to ngme of that good news we were talking about, the housing falapse got us into this mess, of course, but the free fall may meve found bottom. today's home price report shows icagos in chicago rose 4.5% in
may. 3.9% in san francisco. and in atlanta, prices were up 4%. sharyl attkisson is in our attkau there. .hat did you find out? >> reporter: well, scott what t w're saying is of course good news to realtors in the atlanta area , and some of their customers too. >> we added this nice brick back splash. in reporter: jonathan orozco and his girlfriend ashley wingates are making an offer on this ringhouse in sandy springs. ,> it's a nice town home, it's multi-level, there's a lot of omom, there's hardwood floors, there's a movie theater, there's a lot of room to build a family. a great time as a buyer to be on the hunt for a house. se reporter: real estate broker jason lapene is the one selling the house, after renovating it for $10,000 he figures he'll make a $30,000 profit. >> this is something you e donn't have done two years ago, and this is showing me that
su can still flip houses now rsd the fact that you can do nat i think should instill some confidence in sellers and buyers nationwide. >> reporter: nationwide the esmber of homes for sale remains low, that's helped stop falling home prices. gad buyers are also taking advantage of record low interest rates, now 3.49 on a 30-year mexed mortgage. do you think a year ago you would have been in the same market? >> no. absolutely not. e.think we're also we weren't ready a year ago to purchase. so now we are. >> reporter: so it's all coming together? >> it is, yes. t reporter: we did speak to other analysts who say they think the sales price increases may be temporary, as new foreclosures hit the market and are sold at discounted prices. and scott, home prices are now at about the same level they were in early 2003. >> pelley: thanks, sharyl. the federal reserve board is meeting today and tomorrow to talk about what if anything the fed should do to try to jolt the asnomy. to geed rebecca jarvis to get a sense what was the prospects are, and we found out last week
tat the economy grew at 1.5% in the spring. what could the fed do to help? >> reporter: the fed has three orter:y options, scott. it could keep interest rates at or near zero percent for longer, say as many as three more years. it could buy more treasuries, to ldimulate the economy. at it could give banks less interest for the reserves that fed keep at the fed. >> pelley: i'm curious, interest rates have been near zero for 3.5 years, hard to imagine, still happy made much of a dent in unemployment. woy doesn't that work? >> reporter: the underlying thought here is that doing this will get the banks lending at lendper rates. but the banks have to want to ennd the money to get the money net into the hands of consumers, and consumers and businesses have to want to borrow the money. so it relies both on the fed's policy but also the psychology of the marketplace and that
psychology just hasn't found a rful armyse it wants to move in. >> pelley: we are going to move on to syria now where rebels with rifles are holding out ityinst one of the most powerful armys in the middle east. fighting raged for an 11th day in aleppo, the ancient city is syria's largest with more than 3 million people. rebels polled some of the neighborhood there. as you know it's been a year and a half since a popular uprising began to overthrow the 42-year- old dictatorship of the assad family. 200,000 residents of aleppo have fled, as government forces pound the rebels. the dictatorship doesn't allow reporters into the war zone, ata slipedrrespondent charlie 'agata slipped into the area nist the syrian army and tonight he takes us down the road to aleppo. >> reporter: we drove down empty treets and back roads to try to reach aleppo, the main highways he too dangerous. roe syrian army has set up checkpoints to stop rebel fighters headed for the city. the rebels called ahead
constantly to other fighters to lyke sure the road was still safe. ok everything okay? u, he told us. fighting has broken out nearby ninenine of our fighters have been killed. he said they had taken a wrong turn, straight into an ambush by government militia. this is the road to aleppo and andtopped at a rebel army yheckpoint, they told us not to ot any further, it's just too dangerous. tbels coming in the other direction reported seeing ence os and there are checkpoints that have been set th by the syrian army and there's also the presence of the shabiha, the feared militia f loyal to the assad regime. dy found a group of refugees hiding in an olive grove, he told us his family had fled the .onstant shelling in aleppo. the attacks came from the sky, he said, everybody was crying. dome of the children even fainted from fear.
ohat do you think would have happened if you stayed? it was a death zone, he said. m found more refugees hidden in a house in a nearby village, in a they told the same story, how thefiercest fighting was right in their neighborhood. we were really scared for our children, she said, we really ,hought we would all die. this woman told us she blamed the shabiha, the government thugs for the violence. was try trying to get her family ut of thhe country and into turkey. away from the fighting, men from this village held funerals for tose fighters killed earlier in the day before heading back to try to join the battle in aleppo. >> pelley: correspondent charlie ley:ata is joining us from inside syria. charlie, tell us a little bit more about the civilians you've seen and the refugees leaving aleppo. >> reporter: well, as you get avingr to aleppo you really get po.ense of how bad the civilian problem is there. we've seen refugees streaming nswn that road. and they are seeking shelter wherever they can, they are sleeping under trees in olive
d oves, in shelters in those groves and in local villages. and the problem is there isn't es,ugh water or food to go around so, that's causing problems among the local residents there. heyve also heard that they had m hn rejected from hospitals ilen their children had needed n.dical attention. so this is a problem as the situation worsens in aleppo, it's going to worsen in those towns and villages and it's relly stretched to breaking hed t. >> pelley: charlie d'agata, thank you very much, reporting ngom inside syria. tonight the biggest blackout in history has left nearly 10% of eft world population without power. a massive failure in india that started yesterday, doubled today. knocking out power to 22 states and 700 million people. traffic and trains ground to a halt. t cleause isn't clear, but
india's grid is rickety. smaller blackouts are part of daily life. e.erican businesses depend on dedia for customer service call centers and data processing, and we checked on that today. we found out that many of those businesses have backup manyators. ese checks are in the mail. rebates from health insurance .ompanies. a boeing 737 and a bird have a mid air collision. and michael phelps is on a quest to break an olympic record set nearly half a century ago. when the "cbs evening news" continues.
>> pelley: we do not get to say utis very often, but republicans tsd democrats on capitol hill thached an agreement today. hn brepublican speaker of the house john boehner and the democratic leader of the senate harry reid said that congress goverpprove funding to keep the government running for six more months. that means there will be no ernmen of a government shutdown wn election time. you've probably never seen a rebate check from your health rom yance company. surance the first time, many consumers and businesses will be getting checks over the next few tteks. ksere is a little known part wn parthealth care reform law that requires insurance companies to spend 80% of their premiums on health care, or reimburse the customer.
eirasked ben tracey to tell us how it works. >> it's confirmation that insurance companies took too much of what i paid. how it >> reporter: earlier this month ramie court got a check from his palth insurance company for more than $4,000. $4,000 means zero. >> you'll never kick a $4,000 check from the insurance industry, you know, out of your bank account. >> reporter: court runs a nonprofit consumer watch dog organization in santa monica, california. he pays nearly $250,000 per year toprovide health coverage for his 14 employees and their families. >> and so what we got back was a very small percentage of our overall premium. >> reporter: he got the rebate because his insurer anthem blue sross fell sort of the so-called 80-20 rule. 20 requires insurance companies to spend at least 80% of the money they collect in premiums medicual medical care. no more than 20% of premiums can
be spent on salaries, bonuses and advertising. in california, anthem says it spent 79.9% on health care so, eney had to refund .1% of premiums. 1%e idea was to force insurers oo get rising costs under control. an industry spokesperson says that is not the problem. >> what we're paying for rvicician services, hospital lervices, new medical escrnologies, prescription hat's, that's what's driving the rancein insurance premiums. ter:eporter: overall 14% of insurance companies owe rebates, owcluding some of the largest, ngtna, cigna, humana and united health care. but don't expect a check any time soon. most of us get health insurance through employers, so they get the bulk of the rebate checks. reba can use the money to offset huture increases or improve et ffits. jamie court plans to put his e ,000 back in his business's bank account. >> even though it's low it's
nice to have the money. s reporter: the largest insures will have to pay out more than rebillion, the average rebate is $151. ben tracey, los angeles. >> pelley: if you get a check, can you spend it on gasoline, prices are rising again. the nationwide average tonight is $3.50 a gallon, that's up 17 cents from last month. and that is the largest increase on record for the month of july. .ut gas is still 21 cents cheaper than it was a year ago. a uni a united airline 737 jetliner heading to denver was damaged today when it collided with a ird. look at this. the flight from dallas was about 25 miles outside denver when it hit the bird, the plane with more than 150 people on board landed safely. it was taken out of service for inspection and repair. michael phelps tries to swim his way to 19 medals. thre than any other olympian, and that's next.
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that does not require any health questions or a medical exam. your rate will never increase and your coverage will never decrease. that's guaranteed. they're waiting to hear from you, so call now. >> pel >> pelley: we got an earful from aome of you today because we reported yesterday's olympic results before the delayed broadcast that runs behind the games by several hours. well, here comes another olympic story, so don't say we didn't warn you this time. american swimmer michael phelps icst to the olympics with nothing more to prove, but he did have high hopes for breaking a record.
mark phillips is in london. >> reporter: for someone with this many olympic medals you wouldn't think getting a couple more would be that important, but it was. achael phelps had 16 in his nullection before going into these games, and showed them to anderson cooper on "60 minutes." some of them he keeps wrapped in ilverd t-shirt. hed after the u.s. silver medal in the relay the other night, to count was up to 17. the threshold of something that had never been done before. only a russian gymnast from the 1950s and 60s, larisa latynina had ever won more and she told phelps the only time they met that she thought he'd surpass her, but still considers her not herself the greatest olympian ever. l t any more. phelps was leading in the about
butterfly until the last stroke, but his face showed he was beaten by five 100th's of a second by chad le clos. still, it tied him for are the all time olympic silver record. co the second race a freestyle relay there was no suspense, just domination, phelps same the with t leg in a convincing u.s. twoory, another gold, his 15th to go with two silvers and two bronzes, 19 medals. neerican fans knew they had seen something no one had ever seen before, and may never see again. shelps almost didn't make it to indon, after his record eight golds in beijing he fell off the training wagon, was once photographed taking a non- performance enhancing drug. but the thought of becoming the world's most meddled olympian in history was enough to draw him back for one more game. se m> i kind of feel like my old ming again and i'm swimming races how i used to.
so everyt so everything is kind of coming en't oo me. what it was, i guess, before aces. >> reporter: the u.s. relay win tonight wasn't so much a race as a procession, and a fitting one. michael phelps' olympics aren't over, he has three more races, so it's 19 medals and counting. mark phillips, cbs news london. >> pelley: american swimmer allison schmitt took the gold heday in the women's 200 meter free style, and the u.s. women's gymnastics team won the held in the team competition for yearfirst time in 16 years. hy'll tell you why so many sharks are circling in the xtters off cape cod, next. d e sure points on my feet and exactly where i needed more support. i had tired, achy feet. until i got my number. my dr. scholl's custom fit orthotics number. now i'm a believer. you'll be a believer, too. learn where to find your number at drscholls.com. ooh gas, take an antacid.
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to help power away tough foods even in corners and edges. so, i was right, right? i've gotta run. more households use cascade dishwashing detergent than any other brand. >> august arrives tomorrow and with it comes the real dog days of summer. but on some beaches it is more like a shark days. a swimmer was attacked off of cape cod massachusetts yesterday and we asked staff to investigate and it turns out that the best of intentions may have lured sharks closer to shore. the sandy beaches of cape cod
lure tourists. but on monday there was another visitor here that was not so welcome. >> the shark attack, he is and bleeding. >> a man was hauled off the beach after being bitten on the legs while swimming. eyewitnesses were telling tales of a shark attack. >> a fan about this big, we were wondering what we saw. but you knew. that was a shark. >> scientist confirmed that a man was likely bitten by a great white shark. it would be the first known to attack off of these waters since 1936. the man was able to swim to shore and was brought to a local hospital in stable condition. we'll shark sightings are rare along these beaches, scientists have tagged nine great white sharks already this year. and that is what forced want to see. >> how many say that it wants to see a shark? >> most of them. >> david murdock has operated
his water for pick for 15 years. >> as is common to see this many seals? >> very common. you will see them on the beach, each trip. >> scientists say that was bring them to the coast is food in the form of a booming seal population. murdoch showed us how seals line the shore. there are now roughly 350,000 living along the north atlantic coast. >> there are a lot of seals out there. there are thousands. and they are increasing in number because they're protected. >> they're protected because of the 1972 federal marine mammal protection act which makes it illegal to harm these animals. with a life span of 30 to 40 years, the seals will keep providing a tempting target for sharks along these waters. >> and that is the cbs evening
news for tonight. for all of us at cbs news, all around the world. good night. >> good evening i am alan martin >> i am dana king, thousands of college california students drowning in debt. now a well-known private university has opened up shop in the tri valley hoping to attract working professionals i want to go back to school. ann noterangelo breaks down the cost. >> here it is, the university of san francisco in pleasanton. class is already underway with the average age 30 years old and they're told that in two years they can complete their master's degree or get a master's degree. this ribbon cutting celebrates the campus amid the excitement usually reserved for a child's first day of school.
>> i might add that you get the best of everything, you get a university of san francisco education and no fog. >> campus will offer bachelor's and master's programs on nights and weekends making it convenient for professionals to continue their educations. >> they want to be able to complete that degree because their earning power increases. >> it is an appealing market for higher education. >> we have some of the highest test scores, we have lawrence livermore laboratory in livermore where we have a very high number of chp's and researchers and scientists. >> the to your bachelors' program averages $40,000 and a two-year master's program averages about $33,000. it is much cheaper to attend a state university but private schools appeal to students that once guaranteed glasses. >> great demand right now a special with the cutbacks in state schools. and so we are getting many more students because they want to secure their graduation