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CNN Wolf Blitzer Reports

Man Who Shot Inglewood Police Video Arrested; Ricci to Face Burglary Charges; How Scared Should You Be of the Stock Market?

Aired July 11, 2002 - 17:00   ET

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

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
WOLF BLITZER, CNN ANCHOR: I'm Wolf Blitzer in Washington.

By now, almost everyone has seen this video of a violent weekend arrest in Inglewood, California. At this hour, there are major developments. The police chief in Inglewood is speaking -- he's at a news conference. Let's go there live.

(INTERRUPTED FOR LIVE EVENT)

The police chief saying he can certainly not condone excessive use of force, but he says everyone should have a sense of balance, get all the facts before a final decision is made about what to do about the officer, in this particular case officer Jeremy Morse. The police chief also saying he disagrees with the mayor of Inglewood. The mayor, Roosevelt Dorn, already saying that this police officer should be dismissed.

There are other developments in this case that are unfolding right now. For that let's bring in our Charles Feldman. He's been investigating this other development. Charles, tell us about the individual who shot this highly explosive videotape. What happened to him today?

CHARLES FELDMAN, CNN CORRESPONDENT: Wolf, what happened to him not too long ago is he was arrested right outside the building where CNN has its offices here in Hollywood, California. He was arrested and you can see now surveillance tape shot by CNN's security camera outside the building.

He was arrested by officers from the Los Angeles County District Attorney's office on outstanding arrest warrants from Placer County. That's in northern California where he's apparently, according to the LA District Attorney's office, wanted on charges ranging from petty theft with a prior -- that would be a non-bailable offense in California, to a charge of hit-and-run driving while under the influence.

The story given to us by the DA's office is the arrest had absolutely nothing to do with the fact that Mitch Crooks was subpoenaed yesterday to testify today before a Los Angeles County grand jury looking into the videotape that he made of that beating in Inglewood, California. They say it is coincidental, but they have an obligation under California law to arrest somebody who has outstanding arrest warrants against them.

I'm going to show you another videotape now. That's actually a picture, I believe, of Mitch Crooks, but let's go to another videotape that was shot by a CNN cameraman after he was arrested and let's bring up the audio so you can hear him screaming inside that car.

(SCREAMING)

FELDMAN: It's quite clear by listening and watching that video that the young man was not an eager participant in this and did not want to be driven away. And we have here an eyewitness to that and he happens to be Matt Furman. Matt, how are you? Matt is a public relations honcho here at CNN. He was downstairs with an official of CNN, coming into the building. What did you see?

MATT FURMAN, CNN EXECUTIVE WITNESS: We saw a man who looked desperate to get away from several other men. He was in hysterics. He was pleading with onlookers to help him. As you saw on the tape, it was at the top of his lungs. He looked extraordinarily desperate.

FELDMAN: OK and did you see -- the officers who were plain clothes, did they seem to be treating him in a fair manner? Was there any appearance of abuse of any sort?

FURMAN: No appearance at all. It looked like they were trying to restrain him from running away. They were holding him from behind by his arms. But, again, he looked like he was trying to get away. They looked like they were trying to keep him from getting away.

FELDMAN: Matt, thank you. It is unclear, I should tell you Wolf, exactly why the young man was outside CNN's building. We're still looking into that. We do know he was taken from here to the grand jury, and it is unclear, also, whether he ended up testifying - Wolf.

BLITZER: Charles Feldman, thanks for that report. And earlier in the day in Los Angeles, Mitchell Crooks was interviewed by a Los Angeles radio station. We have an excerpt from this interview. It sets the stage for what happened subsequently during the course of the day.

(BEGIN RADIO INTERVIEW CLIP)

MITCHELL CROOKS: They're just coming after me because I shot the video and that's basically what this is boiling down to now. I feared for my life. They're going to kick my - in the cell or take turns on me probably.

UNIDENTIFIED MALE: Mitchell, Mitchell ...

(CROSSTALK)

UNIDENTIFIED MALE: ... this is (UNINTELLIGIBLE) DA's office. We want you before the grand jury. We don't want you in a cell somewhere. We want you before the grand jury and we want that original tape.

(END RADIO INTERVIEW CLIP) BLITZER: So there it is, the arrest of Mitchell Crooks, the individual who shot that videotape, the videotape of the officer, the Inglewood police officer Jeremy Morse, beating that we've all seen, beating a 16-year-old in Inglewood, California.

John Barnett is the attorney for Jeremy Morse. He joins us now live. Mr. Barnett, thank you for joining us. Is there any possible excuse for what the officer is seen as doing? We've all, of course, seen the videotape.

JOHN BARNETT, OFFICER MORSE'S ATTY: Of course, he used appropriate force for the situation. And I think when all the evidence is in, just like the police chief has indicated, when all the evidence is in and when that videotape is put into context, then I think there'll be no dispute but that he used the appropriate level of force for the given situation.

BLITZER: Well, we'll get into some of the other evidence, but when he smashes him down on the hood and then he punches him in the face, is that standard operating procedure for a police officer with someone who is handcuffed?

BARNETT: Well it depends on what the person who is handcuffed is doing and it depends on what the circumstances are. In this case, it was very important for the officers to get the subject off the ground. There was a crowd forming. They did not want a riot situation, and they wanted him up and in the car.

Once he was lifted off the ground, he had his legs go limp so that he had could not be - so he had to be in essence carried. My client had to put him on the vehicle and far enough up on his trunk so that he would not fall to the ground, and you can see him holding him on the -- that vehicle. The fact that his hands were cuffed does not prevent him from using those hands and his feet. And you will see that the video does not disclose what he is doing just prior to the -- to being punched with his hands.

BLITZER: Well, tell us what he was doing.

BARNETT: Well I'm not going to comment on what my client said. I read in the paper this morning that his - the groin area was grabbed and that certainly would be consistent with what is shown on the video and not shown on the video, and it certainly would justify the use of force, which was implemented.

BLITZER: A former D.A. of Los Angeles County, Ira Reiner, said on CNN, he said a police officer may use force for only one reason and that is to restrain an arrestee, but he may not use force to punish that arrestee. It certainly seems like Officer Morse, your client, was trying to punish the arrestee.

BARNETT: Well, unless the arrestee had a hold of the office's groin area and then the punch is perfectly justified. Certainly you may not punish an arrestee for past conduct, but you may use force in order to prevent that person from assaulting you or other officers, even if their hands are cuffed. BLITZER: Just to be precise, with his hands cuffed, what you're saying, he was holding Officer Morse in his groin area. Is that what you're saying?

BARNETT: What I'm saying is that that's what the evidence looks like, yes.

BLITZER: And what's -- right now we heard the mayor of Inglewood say within the past few days your client should be fired. The police chief, though, is willing, as we just heard, willing to let the evidence come forward. What do you say about what the mayor said and what about the police chief's comments?

BARNETT: Well, I agree with the police chief that the investigation should be carried out and that due process should be afforded. With respect to the mayor, he's an elected official, and he swore an oath to uphold and defend the constitution, and he well knows that the constitution provides for the presumption of innocence. And to find somebody guilty by watching a little bit of a tape prior to there being a trial I think is deplorable, and I think that it raises the expectations of the community. It misleads the community and when this officer is acquitted, the community will have felt cheated because they were told by the mayor that he's guilty when the evidence simply will not support that. And I think that ...

(CROSSTALK)

BARNETT: ... he's made a terrible mistake.

BLITZER: Officer Morse is suspended with pay for the time being?

BARNETT: Yes.

BLITZER: OK, John Barnett, thanks for spending some time with us on ...

BARNETT: Yes, sir ...

BLITZER: ... this story, which has attracted, of course, national attention.

Let's move on to another story that's attracted national attention in Salt Lake City. Are Salt Lake City Police closing in on a kidnapper or just busing a burglar? Charges were filed today against a handyman who used to work for Elizabeth Smart's parents, but those charges don't relate directly to the Elizabeth Smart kidnapping.

CNN's Mark Potter is standing by to help sort all of this out. Help us, Mark, understand what's going on.

MARK POTTER, CNN CORRESPONDENT: Well, I'll try Wolf. Richard Ricci is charged with one count of burglary and two counts of misdemeanor theft. He is also charged as a habitual criminal, which means that if he is convicted, he could face up to life in prison.

Now, as you said, these charges are not related to the abduction of Elizabeth Smart, although there are some details in those cases that certainly interests the investigators. For example, Ricci is charged with stealing from the Smart home in June of last year when he worked for the family. He allegedly stole some jewelry, a perfume bottle and a wine glass filled with seashells and according to the charges filed today by the county district attorney, he confessed to that.

He is also accused of stealing some jewelry from -- and a little bit of cash from another house in the neighborhood in April of last year and what's interesting about that case is that he allegedly did it by breaking into the house while the - at night while the family slept inside. Now the police chief said today that Ricci continues to be a focus of the abduction investigation. He also said that burglary is -- fits into one of the two main theories of how the Smart kidnapping occurred.

(BEGIN VIDEO CLIP)

CHIEF RICK DINSE, SALT LAKE CITY POLICE: Primarily we're looking at somebody who had access to the house, knew the house or saw -- had availability to the house to know how to get in and get around in there. We're also looking at the possibility it could have been a burglary that went awry. Certainly this fits under the charge that we have with Mr. Ricci. We're also looking at the possibility there was a predator who had staked her out, watched her over a period of time, and went in and took her for sexual purposes.

(END VIDEO CLIP)

POTTER: Now as to the letter that we talked about yesterday, Wolf, one that the family said it got from someone, reportedly indicating that the abductor wanted to negotiate the release of the young girl, police said today that they have very serious doubts about the validity of that letter. In fact they think it is a hoax and also the head of the FBI office here said that that videotape from the hospital surveillance camera that shows activity in the parking lot of the hospital on the morning of the kidnapping, the FBI says that that videotape is of such poor quality, even after it was enhanced by the FBI laboratory, that it probably will not be of any benefit to the investigators.

So the investigation continues now. It's been more than a month. There has still been no arrest in the abduction case and no credible evidence developed on the whereabouts or the condition of 14-year-old Elizabeth Smart -- Wolf.

BLITZER: So many of these leads simply don't pan out. Mark Potter, thanks for that update, appreciate it very much.

You'll want to stick around to hear the most specific detail yet about the possible, possible terror threat inside the United States. Also, she's accused of leaving her two kids to die in a hot car while she got her hair done. Now, some say she's getting off way too easy.

Plus, the Dow's still dropping. How do you survive the market tumble? We'll be answering your money questions. Call now, 1-888-CNN- 0561.

Today the S&P 500 and the Nasdaq composite opened at their lowest level in how many years? Two years? Five years? Ten years? Thirty years? The answer coming up.

(COMMERCIAL BREAK)

BLITZER: Welcome back. CNN has learned major new developments here in the United States in the war on terror. Our justice correspondent Kelli Arena has this report.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): In some of America's biggest cities - including Seattle, Chicago, Detroit, Atlanta, groups of suspected al Qaeda operatives are being closely watched by the FBI, government sources say. Fewer than 100 in all, CNN has been told, but the most specific detail yet about the possible terrorist threat inside the U.S.

JOHN ASHCROFT, ATTORNEY GENERAL: There remain sleeper terrorists and their supporters in the United States who have not yet been identified in a way that will allow us to take preemptive action against them.

ARENA: Public statements such as these, and word that investigators are convinced another attack is being planned, raise an obvious question. How equipped is the U.S. to prevent another domestic attack?

SEN. BOB GRAHAM (D), INTELLIGENCE CHAIRMAN: The reality is that as long as we are as free a society as America is, we are going to be vulnerable.

ARENA: The onus is mostly on the FBI because it is charged with collecting intelligence in this country. Changes are under way. Five hundred agents will be permanently shifted to counter terrorism. The FBI has new, investigative flexibility and agents in the field have more power to make decisions, but problems persist.

BRIAN JENKINS, RAND CORPORATION: We still have a long way to go on coordinating intelligence activities and cooperation among agencies in this country. This is a very complex government. There are many sources of collection. Bringing those all together is not a natural thing to do in the intelligence business.

ARENA: Analyzing the loads of information coming in every day is also a problem. One officials says the FBI - quote - "isn't even close when it comes to hiring the analysts needed to decipher important clues, and it will take several years to get there.

Another crucial element, computers.

ROBERT MUELLER, FBI DIRECTOR: We are overhauling our technology as quickly as we can, given how far we are in being behind the technology curve. ARENA: Agents are still not able to perform sophisticated searches or functions necessary to connect intelligence dots, but an overhaul won't be complete for another two years. Perhaps, the biggest challenge facing the FBI is developing contacts within terrorist organizations.

JENKINS: It takes years to penetrate these organizations, and even then, terrorist attacks continue to occur.

ARENA (on camera): Officials point out there is no specific or credible information regarding an attack against the United States, but then again, there wasn't any before September 11th either.

Kelly Arena, CNN, Washington.

(END VIDEOTAPE)

BLITZER: Four high-ranking Bush Cabinet members are voicing their support for a new Homeland Security Department. Today the Attorney General John Ashcroft, Defense Secretary Donald Rumsfeld, Treasury Secretary Paul O'Neill and Secretary of State Colin Powell testified before a House committee. All agreed the Cabinet-level department would begin a new era of cooperation in defending the nation against terror attacks.

(BEGIN VIDEO CLIP)

ASHCROFT: For the first time, America will have under one roof the capacity for government to work together to identify and assess threats to our homeland, to match these threats to our vulnerabilities, and to insure our safety and security.

(END VIDEO CLIP)

BLITZER: Under federal airport security guidelines, a system to screen all checked baggage is to be in place by the end of this year. There is speculation, though, that deadline may not be met.

CNN's Patty Davis has that.

(BEGIN VIDEOTAPE)

PATTY DAVIS, CNN CORRESPONDENT (voice-over): Come December 31st, all checked bags will be required to go through one of these bomb- detection machines or be swabbed with this device testing for explosive residue. The goal, to prevent a terrorist bomb from bringing down a U.S. airliner. But in a new study, the latest to conclude the end of the year deadline will be nearly impossible to meet.

ROBERT POOLE, REASON FOUNDATION: Putting in thousands of new machines that take up a lot of room requires a lot more space than is available in most airport terminals. And so this means multimillion sometimes hundred million-dollar construction projects at many of the major airports and there simply isn't time to do a project of that size between now and December 31st. DAVIS: The study says the machines are slow and unreliable. That could mean major backups for travelers. It also questions whether the Transportation Security Administration, the agency in charge of airport security, can get the 54,000 federal screeners in place to handle the bags and the passenger check points in time.

The recommendation, move the deadline ahead two years to December 2004. Republican John Mica, a key congressman on aviation issues says Congress may have to move the deadline.

REP. JOHN MICA (R-FL), TRANSPORTATION CMTE: A more realistic deadline would be sometime next year.

DAVIS: The Transportation Department says it has already taken over three airports and hired 3,000 federal screeners. It vows it will make the deadline to screen all bags. In a statement, a spokesman says the study calls for a delay in security equipment of up to two years. Terrorists aren't going to wait that long.

(on camera): The study's call for moving the year-end deadline for bag screening isn't the first. Airport executives recently told Transportation Secretary Norman Mineta they need more time to do the job right and insure passenger security.

Patty Davis, CNN at Reagan National Airport.

(END VIDEOTAPE)

BLITZER: The West Nile Virus is rearing its ugly head again. Find out where potentially deadly mosquitoes struck this time.

Also, it's sizzling out West, cool in the East, and El Nino's back, a look at the wild weather when we return.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: This is Bob Franken in Philadelphia, Pennsylvania where one of the top players in the National Basketball Association is going to fight to avoid imprisonment.

BLITZER: Plus, the markets going down, down, down. Practical advice for you still to come.

First though, here's a chance for you to weigh in on our top story, or one of our top stories at least. Our "Web Question Of The Day" is this, what are you doing with your portfolio? Holding? Selling? Buying?

Vote at my Web page, cnn.com/wolf and while you're there let me know what you're thinking. Send me your comments. I'll try to read some on them on the air each day at the end of this program and that's also, of course, where you can read my daily column -- cnn.com/wolf.

(COMMERCIAL BREAK)

BLITZER: Welcome back, I'm Wolf Blitzer in Washington. Still to come, a mom who police say left her kids to die in a hot car now faces lesser charges. We'll meet the prosecutor who says she's getting off too easy, but first a look at some other top stories right now.

Louisiana is reporting the first human cases of West Nile Virus verified this year. The state epidemiologist says three older men hospitalized with symptoms of encephalitis have tested positive. West Nile Virus is a mosquito-born disease. Most people infected suffer mild symptoms or none at all, but it's serious or even fatal in rare cases.

The phenomenon blamed for wild changes in normal weather patterns is back. Forecasters say this latest version of El Nino won't be as strong as its predecessor, which occurred in 1997 and '98, but they'll be watching it closely nonetheless. It's expected to begin impacting the Pacific Northwest in November. El Nino comes around ever four or five years and lasts about 18 months.

It's a little early to blame El Nino for the blistering heat wave out west where more record highs are expected today. In California, the heat has prompted the state's first power alerts of the year. Another could be called today. Among the highs predicted today, 118 degrees in Redding, California; 108 in Sacramento and Boise, Idaho is expected to reach 107 degrees.

He's a basketball superstar who just a year ago was the league's most valuable player as he led his Philadelphia 76ers to the NBA Finals. Now, Allen Iverson faces a variety of criminal charges for allegedly forcing his way into a cousin's apartment with a gun. Let's go live to our national correspondent Bob Franken. He's on top of the story in Philadelphia -- Bob.

FRANKEN: And, Wolf, a lot is breaking all at once. In the next short while, Philadelphia 76ers, the NBA team, are holding a news conference with their head coach Larry Brown and General Manager Billy King.

The police are going to be holding a news conference to discuss the surrender of Allen Iverson for 11 charges including four of them felonies drawing out of that incident on July 3.

Iverson, of course, a superstar in the National Basketball Association, as you said, but somebody who has encountered big brushes with the law. He was charged on July 3 with invading the apartment of a relative, looking for his wife. Out of that grew the charges that range from false imprisonment, unlawful restraint, weapons charges, simple assault, a variety of threat charges that type of thing.

Iverson's house was searched as the investigation went on today, and then finally the prosecutor, the district attorney here and the police commissioner held their announcement after several days of deliberation.

(BEGIN VIDEO CLIP)

LYNNE ABRAHAM, DISTRICT ATTORNEY: Based on the totality of the circumstances, we agreed with the police findings that there was credible reason to believe that these crimes had allegedly occurred and that's the basis that we issue or agreed to issue charges.

UNIDENTIFIED CORRESPONDENT: And, he had a gun?

ABRAHAM: One of the allegations is that he had it in his waistband. Remember, I didn't say pulled. I said displayed.

(END VIDEO CLIP)

FRANKEN: Now, as a matter of fact, two of the charges are connected to that. One of them is carrying a gun in a public place, and the other one, carrying a gun without a lawful permit. Theoretically, Wolf, theoretically the charges could add up to 65 years but, of course, we have to emphasize that's only a theoretical sentence -- Wolf.

BLITZER: This is a man who was making, about to make within the next few years $100 million if not more. Bob Franken, thank you so much. And, it does have elements almost like a Greek tragedy. It seemed as if Allen Iverson had put his troubled past behind him, though he had shed the controversy he wore like a cloak and transformed himself into a respected superstar.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): For those who observed his life and career, Allen Iverson is a continuing source of amazement. Those breathtaking moments where he defies logic and gravity with a basketball seemed to run parallel with his pattern of coming so close to throwing it all away, a pattern which is documented back to his high school days in Hampton, Virginia.

His rise as an all-state basketball and football star with scholarship offers on the table seemed sure to provide an escape from a life of poverty and desperation. But, in 1993, Iverson got involved in a brawl between gangs of African-American and white kids at a bowling alley in Hampton. He was arrested and convicted on rioting charges and sentenced to five years in prison, and had served four months when he was granted clemency by Virginia's governor.

While he was behind bars, Iverson's mother had appealed to Georgetown University Coach John Thompson to give her son a chance. Thompson did and Iverson's talent revived Georgetown's basketball program and Iverson's career over the next two years.

There wasn't much doubt that Iverson would soon be an NBA millionaire, but from the day he signed with the Philadelphia 76ers in 1996, Iverson has led us on a ride that has become emblematic of the troubled superstar. He provides an endless supply of dazzling moves and highlights, but has a love-hate relationship with his coach, and complains of not being treated like a franchise player.

ALLEN IVERSON, PHILADELPHIA 76ERS: I mean, listen, we're talking about practice, not a game, not a game, not a game, we're talking about practice.

BLITZER: He makes yearly all star appearances, had led the league in scoring three times, and has won a Most Valuable Player Award, but entered a no contest plea to a gun possession charge in 1997. He does generous charity work to help impoverished kids, but has a reputation for running with questionable hangers on and cut a rap CD with disturbingly violent lyrics.

With these latest accusations of making violent threats to two men in the middle of the night at an apartment in West Philadelphia, we get another window into Allen Iverson's parallel lives, and again wonder how this story might end.

(END VIDEOTAPE)

BLITZER (on camera): What a tragedy. In a moment, outrage in the case of a mom accused of letting her children die in a hot car, but first it's almost time for you to ask the questions. Do you want to know where you should be putting your hard-earned cash? Our Money Talk segment coming up next, call us now, 1-888-CNN-0561.

(COMMERCIAL BREAK)

BLITZER: Welcome back. In suburban Detroit, Michigan, prosecutors plan to appeal a judge's decision to reduce charges against a woman who left her small children in her hot car to die. Twenty-five-year-old Tarajee Maynor admitted to leaving her 10-month- old daughter and three-year-old son in the car in almost 90 degree heat, while she spent more than three hours in a beauty salon.

She was charged with Murder, but yesterday a judge lowered that to Involuntary Manslaughter. Joining me now from Farmington Hills, Michigan is Marc Barron. He's the assistant prosecutor for Oakland County. Mr. Barron, thanks for joining us.

MARC BARRON, ASSISTANT PROSECUTOR, OAKLAND COUNTY, MICHIGAN: You're welcome.

BLITZER: Based on what the definition is first degree murder is willful, deliberate and premeditated killing, punishable by imprisonment for life without parole. The judge thought that was too hard. Was there any evidence that she deliberately wanted to kill her children?

BARRON: Well, let me correct you a bit in regards to the law in the state of Michigan. In Michigan, the law in regards to first degree murder can be shown in two particular ways, that being felony murder, here the underlying felony being child abuse in the first degree, and then a second degree murder, where there need not be shown premeditation or deliberation or even an intent to harm those children. When you put both of those things together, you get a first degree felony murder.

BLITZER: But, do you concede, do you believe she deliberately wanted to see those two little kids die?

BARRON: Well, there is evidence in this case that she, in fact, left those children in the car, went into the salon for at least three and a half, up to four hours, making no attempt to ever go check on those children at any point in time whatsoever, never showing any concern for those children whatsoever, not parking that car under a garage; in fact, parking the car in an area that was exposed to the heat and quite out of the way of the entrance to that building.

BLITZER: She says she was just stupid. She didn't realize that leaving the kids in that hot car would kill them, and I think the evidence suggests that the driver's window, the driver's side window was open what, an inch and a quarter or inch and a half or something like that.

BARRON: That was one of the statements that she made and the evidence did establish yesterday that, in fact, she did say that she rolled down that driver's side window an inch and a half, which does, in fact, display knowledge that she was going to, or possibly could have caused harm when she went into that salon.

BLITZER: The judge's argument was that what basically, that yes she killed the kids but she didn't mean to do it, that's why the involuntary manslaughter, which carries a 15 year maximum sentence as opposed to life without parole for first degree murder.

BARRON: Yes. His ruling was based and partially based upon the fact that he did not believe she intended to harm those children or cause great bodily harm. Our position is that you need not intend the result, but you need to intend the act, which then results in the great harm or in death in this case.

BLITZER: In this particular case, she also lied when confronted with the fact and she drove around for a few hours with those dead kids in the car.

BARRON: Absolutely, and you have to consider the facts of this case and the totality, not just the fact that eventually she told the police that she didn't mean to do it, but you have to consider the fact that she told the police for hours and hours and other personnel that she was abducted and she was raped, and when she returned from that, her children were in the car and they were dead. So, I think you have to consider that evidence, along with all the other evidence in the case when determining or not whether the judge should have bound the case over on manslaughter charges or on the first degree felony murder charges.

BLITZER: Marc Barron, thanks for helping us understand...

BARRON: My pleasure.

BLITZER: ...this awful, awful, shocking case. Never leave anyone, anyone alive in a car, in a hot car like that. It's just awful. And, are you saving enough for retirement in these turbulent times? Our Money Talk segment is next. Call us right now, 1-888-CNN- 0561. We've got answers for your questions.

(COMMERCIAL BREAK)

BLITZER: Earlier we asked: The S&P 500 and the NASDAQ Composite opened at their lowest in how many years? The answer, today's opening marked a five-year low.

And, one more day of training to go in this gut-wrenching week on Wall Street, the NASDAQ clawed its way back into positive territory today, after sinking to a five-year low yesterday. The Dow lost another 12 points, after suffering its largest one-day percentage loss in ten months. Are you concerned about surviving the big dip?

Joe Battipaglia joins us now from New York live. He's going to be taking your phone calls. He's one of the best in the business, the chief investment officer for Ryan, Beck & Company. Joe, thanks for joining us. Let's go to the calls right away. We have one from Royal Oak, Michigan. Go ahead Royal Oak.

CALLER: Yes, about a month ago, I invested $100,000 in a money market fund in a local bank. It is FDCI insured, and it's also completely liquid. I can take it out at any time without any penalty. My question is am I safe there or should I get it out?

JOE BATTIPAGLIA, CHIEF INVESTMENT OFFICER, RYAN, BECK & CO.: You are very safe in the banking system. In fact, there's over $2 trillion in such money funds here in very good company and the basis for the success of the U.S. economy is that the banking system is very sound with the government backing the system. So, I would say you're in very good hands where you are there.

BLITZER: Keep the money where it is. Let's take another caller from Georgia. Go ahead.

CALLER: Thank you very much, Wolf, Joe, I've admired you for a long time.

BLITZER: Thank you.

CALLER: I've been invested mainly in blue chip stocks for about 35 years. Is this not a good time to hold on, rather than sell at these low prices?

BATTIPAGLIA: Well, what you're going to have to deal with, with some of the blue chips, is that they got way ahead of themselves at the tail end of that last great bull market, so the prices got way ahead of where the earnings power was. In addition, some of these companies ran into turbulence in their business, as we're aware the telecom industry has struggled somewhat in more recent days.

On balance, a diversified portfolio of these companies over time will serve you well. On a short-term basis, though, expect more modest returns from those kinds of big company investments, unlike what you saw during the latter part of the '90s.

BLITZER: OK, Newington, Connecticut, go ahead with your question.

CALLER: Hi. My husband and I, both in our 70s, are retired with our IRA money in mutual funds, roughly half equities, half bonds. What do we do now?

BATTIPAGLIA: Well, the first thing you do is take a new look at what your requirements are for your lives, what you plan to do, how you want to spend your money, and then see whether or not you can accommodate those means by the portion that's invested to earn a current return, current income. If that's not enough, you need to add more to it.

In addition, you have to look each other in the eye and say, how much risk can we really take? And if you're not as bold as you once were in your portfolio, cheer up. Many people feel the same way as they face their retirement years, and you may want to become more defensive. If you feel comfortable with the balance that you have, then recognize the fact that over time, you will get good performance out of the equity portion of your portfolio. You've been through two bad years already. We're already into the third year of that. Perhaps it's going to end soon. I believe it will, and you can stay where you are if you can accept those risks.

BLITZER: We're going all over the country, Joe. We got another caller from Hays, Kansas. Go ahead, Hays.

CALLER: Yes, I'd like to know if there are a few companies that are involved in fraud and malfeasance, why is this having such a tremendous effect and a downturn on all of really old companies that have been part of the stock exchange for 50 or 60 years?

BATTIPAGLIA: It's been very surprising to investors and professionals when major large companies run into such a situation. We have Enron. We have WorldCom. We have Adelphia. It raises questions as to who else is undertaking those practices. Where is the next surprise? And, it's not about one shoe falling, but is there many? When does an exception become the rule? That's why there's such great concern in the market today.

I do believe that we'll get past this period, that it's not an epidemic, but it's got to start with companies in their quarterly reports confirming that they are applying the proper standards, that they're looking to weed out corruption and problems in their companies, and the kind of things that happened to Enron and WorldCom will not happen to them on their watch.

BLITZER: Joe Battipaglia.

(CROSSTALK)

BLITZER: That's it. We got to leave it right there. I'll see you Sunday on "LATE EDITION." We'll have you back for more questions and answers. He's the man with the answers.

BATTIPAGLIA: See you then.

BLITZER: Good work. Let's go to New York now and get a preview of Lou Dobbs "MONEYLINE." That, of course, begins right at the top of the hour; Jan Hopkins once again filling in for Lou -- Jan.

JAN HOPKINS, "MONEYLINE" ANCHOR: Thanks, Wolf. Coming up on "MONEYLINE," the White House is defending corporate loans President Bush received more than a decade ago, a practice the president is now condemning. We'll have a report from the White House.

More troubles hit WorldCom, Congressman Billy Tauzin, the Chairman of the House Energy Committee, called for a detailed list of the company's financial records, and he'll be our guest, and tell us what he's found. A remarkable recovery on Wall Street, following three brutal days of selling, we'll have a special report asking who owns stock. All of that and much more ahead, please join us, Wolf, back to you.

BLITZER: Thank you very much, Jan, and we're standing by. We have a new development in our top story, that explosive videotape of the police beating in Inglewood, California. We'll update you on that when we come back.

(COMMERCIAL BREAK)

BLITZER: CNN's Frank Buckley has a new development in our top story, the case of that explosive videotape in Inglewood. Frank, what do you have?

(INTERRUPTED FOR BREAKING NEWS)

BLITZER: Frank Buckley, Mitchell Crooks, of course, being the individual who shot that videotape, the videotape all of us have seen of the police officer beating that 16-year-old in Inglewood, California. Of course, CNN will continue to update you on this throughout the evening.

Here's your chance, by the way to weigh in on our web question of the day. Seventy-three percent of you said you're holding, 16 percent of you said you're selling, 11 percent of you said you're buying. Remember, this is not a scientific poll.

A few e-mails on that videotaped police beating. S.M. writes: "As a retired police officer, I am deeply troubled by what I have seen and heard. Once the young man was handcuffed, he was no longer a threat, and should not have been treated with such excessive force."

Alicia: "It is 2002, but it seems like we're still living in the age of slavery. That boy is only 16 years old. There was no need for him to be restrained like that."

But, Ken writes: "If suspects would comply with police officers' instructions, then there would be no need for violence. When you challenge officers and refuse to obey their commands, some force must be used."

Patrick: "For every cop who gets hostile with a suspect, there are 100 suspects who get hostile with a cop. How come nobody ever captures those situations on tape?"

Good comments. That's all the time we have today. I'll be back, of course, tomorrow, 5:00 p.m. Eastern. Until then, thanks very much for watching. I'm Wolf Blitzer in Washington. Lou Dobbs "MONEYLINE" begins right now.

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