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Baghdad's Haifa Street Experiences Heavy Fighting, Protesters Convene in Washington

Aired January 27, 2007 - 11:00   ET

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

BETTY NGUYEN, CNN ANCHOR: Now in the news, two car bombs killed 13 people in Iraq at a busy market in Baghdad, 32 other people hurt. At least one rocket lands in Baghdad's heavily fortified green zone where the Iraqi government and coalition forces are based and officials say two people are slightly injured. This is the second attack against the complex in three days.
T.J. HOLMES, CNN ANCHOR: The U.S. Navy is searching for three crew members missing after a navy helicopter crashed off southern California. A fourth sailor was pulled alive from the water but died later. The Seahawk helicopter was on a training mission when it went down near San Clemente Island yesterday.

NGUYEN: A successful test of the U.S. Defense Shield, which is designed to protect North America from ballistic missiles. The Pentagon says an interceptor missile fired from Hawaii hit a dummy warhead over the Pacific Ocean.

HOLMES: A federal judge rejects a proposed settlement between State Farm Insurance and Hurricane Katrina victims. It would have given property owners in coastal Mississippi up to $500 million, but the judge says he needs to see more evidence that the agreement is fair.

You are in the CNN NEWSROOM, the news is unfolding live on this Saturday, the 27th day of January. Hello to you all, I'm T.J. Homes.

NGUYEN: And good morning, I'm Betty Nguyen. We do have details on that attack on U.S. servicemen in Karbala. It was precise, it was well rehearsed, but was there some inside help in planning it?

HOLMES: Also, you may have heard about the battle for Haifa Street in Baghdad. Our reporters are there and we'll tell you why this battle matters.

NGUYEN: And a credit card theft on a huge scale. Are you and the banks the suckers? You're in the CNN NEWSROOM.

HOLMES: On a day when peace advocates are holding a huge rally in Washington, there's been more violence in Iraq. Two car bombs exploded minutes apart in a busy market in Baghdad killing 13 people and injuring more than 40. Gunmen dressed as Iraqi police officials abducted seven people from a Baghdad computer store and south of Daquba a coalition air strike killed 14 suspected terrorists. Two more suspected terrorists were arrested in a morning raid. NGUYEN: We are learning more about the attack that killed five Americans in Karbala a week ago. The new information suggests that insurgent tactics are getting more sophisticated and that insurgents may be getting some inside help. CNN's Tom Foreman reports.

(BEGIN VIDEOTAPE)

TOM FOREMAN, CNN CORRESPONDENT (voice-over): New details suggest the attack in Karbala was precise, well rehearsed and very different from the assault the Pentagon first described. 5:00 in the afternoon, a dozen American troops are reviewing security plans for an upcoming Shia pilgrimage to two important shrines. And a dozen gunmen wearing uniforms much like the Americans are heading straight toward them. They travel in a convoy of at least five American-made SUVs, such as those used by high level military brass. Three times, the gunmen stop at Iraqi checkpoints, three times, they apparently pass themselves off as Americans and are waved through. When they reach the compound where U.S. troops are working, they unleash gunfire and explosives.

Five U.S. soldiers were killed, the governor of the town first reports, but the Defense Department now says only one American soldier is killed on the spot. Four others are abducted. The convoy speeds away, outside town the kidnappers hit another checkpoint. Iraqi police let them through again, but suspicious, start following them. The convoy heads east, then north, and finally, the insurgents abandon their vehicles. The Pentagon says two American soldiers are found handcuffed together dead in the back of one SUV. Each shot through the head. A third is dead on the ground nearby and a fourth found alive dies on the way to a hospital. It is a much more complex story than the first version from the military.

ROBERT GATES, DEFENSE SECRETARY: I've just been made aware of the discrepancy in the account and I've asked for the specifics about it.

FOREMAN: This tactic of enemies posing as friends is not new. Two years ago, a suicide bomber dressed as an Iraqi soldier struck a mess tent. In Saudi Arabia when terrorists hit a U.S. compound, they even made a training tape showing how they painted an SUV to look like a police car. Military analysts say this attack was exceedingly well planned. Pat Lang is retired from military intelligence.

COL. PAT LANG, U.S. ARMY (RET.): Whoever was involved in this is a professional who really knew how to do this.

FOREMAN: But investigators still want to know if the kidnappers had help from someone the Americans trusted, someone on the inside. Tom Foreman, CNN, Washington.

(END OF VIDEOTAPE)

HOLMES: It's been billed as one of the biggest protests since the Iraq war began, and it's getting under way at this hour. Peace advocates from all over the country are gathered in the nation's capital this morning for a rally and a march. Our Gary Nurenberg is standing by live for us. Good morning to you Gary.

GARY NURENBERG, CNN CORRESPONDENT: Good morning T.J. The rally began here just about five minutes ago when the first of about 60 scheduled speakers on the podium now on the National Mall in front of the Capitol. This protests will last a couple of hours, but with 60 speakers, you have to think it will be more than that before the rally turns into a march on the capitol, up to the west front of the capitol, the north side, and then back again. The message here to end funding for the war. The first speaker who took the stage today knowing that the Senate has scheduled a test vote on a resolution calling against American interests, the president's plan for more troops in Iraq. Says simply passing resolutions is not enough, the only way to end the war is to cut off funding. That received a large cheer and we suspect that that is going to be the tone that many of the speakers will be taking here today. You'll see some familiar faces from Hollywood, from politics and from the clergy and we will watch it for you, T.J., we'll bring you up to date as it progresses. The rally is just under way, the march in a couple of hours, we'll keep an eye on it for you.

HOLMES: All right and Gary, let us ask you, I hope you can still hear me, I know you have the noise in the back there, but tell me, the organizers said they're expecting some tens of thousands. You said the actual march doesn't start for a few hours, but give us an idea of how well attended and how many people are there now.

NURENBERG: Well you know, I read the same three press releases that you did that predicted several hundred thousand people would be here, but I have to tell you T.J., I was here on the mall on Monday covering the 34th annual march for life on the anniversary of Roe versus Wade. That march on Monday afternoon had at least to a layman's eye, far more people than are here for this anti-war demonstration. But it's early in the day, the rally has just begun, there are events in other parts of town and we expect crowds from those events to be feeding to the national mall. We'll watch it during the day, but so far those promises of hundreds of thousands of people have not turned out. As I know, one of the key organizing groups here is a group called military families speak out. They say they represent more than 3,200 military families who are against the war and want funding stopped. Among them, some active duty military members we expect to be on the stage here today. But we'll keep an eye on the crowd as the day progresses and make sure you're up to date.

HOLMES: All right, Gary Nurenberg for us in Washington, D.C. Thank you so much Gary.

NGUYEN: Despite the protests, President Bush says he is going ahead with plans to send 21,000 more troops to Iraq. The president also promises tougher action against Iranian agents thought to be fueling the violence inside Iraq. CNN's Kathleen Koch is at the White House and she joins us live with all of this. Good morning.

KATHLEEN KOCH, CNN WHITE HOUSE CORRESPONDENT: Good morning Betty. Yes President Bush also is certainly paying attention to those protests on the mall. National Security Council spokesman Gordon (INAUDIBLE) said, "The president believes the right to free speech is one of the greatest freedoms in our country. He understands that Americans want to see a conclusion to the war in Iraq and the new strategy is designed to do just that." Now, Gordon (INAUDIBLE) says the president was already on the phone this morning with Iraqi Prime Minister Nouri al-Maliki, talking about how things are proceeding, how they plan to implement the new security strategy particularly in Baghdad. President Bush in his speech yesterday defended his new plan and acknowledged, though, that the country, he certainly understands, is deeply divided over how to proceed.

(BEGIN VIDEO CLIP)

BUSH: I told the American people I fully understand there are differences of opinion. But one of the things I have discovered is in Washington, D.C. most people understand the consequences of failure. And if failure is not an option, then it's up to the president to come up with a plan that is more likely to succeed. And I spent a lot of time on the subject because I understand how serious the issue is. And the plan I outlined to the American people is one that I believe can succeed.

(END OF VIDEO CLIP)

KOCH: President Bush was also unapologetic about his administration's new get-tough strategy when it comes to Iranian operatives found to be fomenting violence in Iraq. President Bush insisting that if someone is trying to quote, harm our troops or stop us from achieving our goal in Iraq or killing innocent citizens in Iraq, then we will stop them. Betty?

NGUYEN: The president standing firm. What are we expecting to hear in his radio address today?

KOCH: The radio address today focuses on the president's domestic initiatives that he announced in his state of the union address. Specifically he plans on energy on health care. The health care insurance plan is really one of the most controversial. It would allow this tax deduction of $15,000 for families, $7,500 for individuals. And critics are saying the plan really ends up helping only a fraction of the uninsured in the country and actually could undermine employer provided health care. The president in his radio address, though, says that criticism by Democrats is quote, a reflexive partisan response and he calls he said on lawmakers to reach across the aisle and work with him. Betty?

NGUYEN: CNN's Kathleen Koch. And we just want to remind our viewers, we're going to be talking more about this health care plan with a special guest, Paul Ginsberg, he is the president of the Center for Studying the Health System and we'll get into the details of how it could affect you if this plan goes through. T.J.?

HOLMES: All right Betty, well Senator John Kerry blasted the Bush administration today at the World Economic Forum in Davos, Switzerland. The Massachusetts Democrat says the administration's foreign policies have turned the United States into quote, a sort of international pariah. He also predicted that the plan to step up troop strength in Iraq will fail.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY, (D) MASSACHUSETTS: I don't care how many troops are put in. Iraq is not going to be pacified. Now, we are partly responsible. The absence of legitimate, significant diplomacy is a disgrace. Quick flights in by a secretary of state are not diplomacy. There should be a special envoy. Maybe a joint bipartisan special envoy.

(END OF VIDEO CLIP)

HOLMES: You'll remember, of course, Kerry ran against President Bush in the 2004 presidential election, but Kerry says he will not seek the presidency in 2008.

NGUYEN: It's a busy Baghdad street and it's now becoming a ghost town as fears take up residence. Today is an Apollo Day of remembrance, as well. It's the day that a fire killed American astronauts. CNN's John Zarrella joins us live from the Cape with more on that.

Another story to tell you about, still think you won't be a victim of credit card theft? Well we have a thief that you need to meet.

HOLMES: Do you see this car we're going to show you here? It's in the river, if you want to call it that. How did that car get there? More importantly, how did those who were in that car, how did they get out? We'll have that story coming up.

(COMMERCIAL BREAK)

HOLMES: In news across America, a manhunt under way in Las Vegas for a priest? Police say the suspect may have sexually assaulted and struck a woman at a catholic church and then fled the scene. The woman was treated and released from a hospital. No identity yet on the missing priest.

NGUYEN: It was a chilling accident in Detroit, no joke. Two men were in this car when it went out of control and crashed through ice into the Detroit River. Amazingly though, the men were not hurt. A little cold. Neither man spoke English or had a driver's license. In fact, they were turned over to the border patrol.

HOLMES: Police are searching for an escaped prisoner last seen, in of all things, a tour bus. He was driving a tour bus that belonged to country music singer Crystal Gayle. The (INAUDIBLE) escaped from a prison. Last Sunday, he allegedly stole a truck in South Carolina, a Wal-Mart tractor-trailer with merchandise in Tennessee and then the tour bus which was last spotted in Lakeland, Florida. The suspect Christopher Gay was believed to be trying actually to go see his dying mother.

NGUYEN: Well first, record warmth. Now though, an arctic blast. The northeast is dealing with brutally cold weather from Maine to Pennsylvania. Temperatures overnight ranged from the teens to below zero. And in New York City, police were given the authority to move homeless people off the streets to keep them from freezing to death.

(WEATHER REPORT)

HOLMES: Now we're going to talk about removing snow and ice from your driveway and sidewalk. What should you do, should you grab a shovel or should you grab the salt? We're going to find out the best way to tackle that winter problem from CNN's Gerri Willis straight ahead in the NEWSROOM. NGUYEN: And on a somber note, they said, we've got fire in the cockpit, and then they were dead. Remembering the crew of Apollo 1.

(COMMERCIAL BREAK)

NGUYEN: Well for those of you surfing the internet this morning, the Iraq war protest tops the list of popular stories at cnn.com. Stars like Jane Fonda and Danny Glover are expected to speak and some active duty troops also taking part. CNN is following developments at the National Mall in Washington throughout the day and also getting lots of web hits. The search for three crew members missing after a navy helicopter crashed off of southern California. The chopper was on a training mission when it went down yesterday. One rescued sailor later died.

And a 17-year-old honor student and star athlete, branded as a sex offender. Sentenced to 10 years in prison for having sex with a 15-year-old girl. Georgia law called it a felony, even though the sex was consensual. It's a story CNN is following very closely.

(BEGIN VIDEO CLIP)

RICK SANCHEZ, CNN CORRESPONDENT: And you didn't know that it was illegal for a 17-year-old to have sex with a 15-year-old, would you have done it?

UNIDENTIFIED MALE: No.

(END OF VIDEO CLIP)

NGUYEN: Rethinking his actions after one night of illicit fun, but guess who is coming to the defense of the teenager now? We have that full story and the debate tonight at 10:00 eastern in the NEWSROOM.

HOLMES: Remembering an American tragedy. At the Kennedy Space Center, ceremonies are under way right now marking the 40th anniversary of the "Apollo 1" fire. Three astronauts died during a launch pad test for the first Apollo mission. NASA learned some valuable lessons from that tragedy and CNN's John Zarrella is with us now from the Kennedy Space Center. Hello to you John.

JOHN ZARRELLA, CNN NATIONAL CORRESPONDENT: Hi there T.J. They certainly did. You know many experts and certainly many of the Apollo astronauts have said that America may not have made it to the moon, certainly not in the 60's had it not been for the accident and what they learned. Now today, the memorial service here at the Kennedy Space Center just wrapping up a few minutes ago. It ended with a wreath laying ceremony, participating in that wreath laying, the wife of the late Roger Chaffe, Martha Chaffee, and Ed White's son, Ed White III. The two of them accompanied by the associate administrator for space flight, laid a wreath at the base of the space mirror here. Now what had happened 40 years ago, the three astronauts, Gus Grissom, Ed White and Roger Chaffee were participating in a launch pad test. Running through a simulation of an actual launch. Well, the actual simulation never took place because throughout the day, they were running through one problem after another, one glitch after another, communications problems. And finally, at about 5:00 p.m. in the evening, 6:00 p.m. in the evening, as they were strapped in, the hatch was closed, the words were heard, we have a fire in the cockpit. And 17 seconds later, the three men were dead. Of course, it later came out that the pure oxygen in the cockpit combined with a spark by a -- from a wire caused that horrendous flash fire that killed the three astronauts. Now, before the ceremony this morning, I had an opportunity to talk with Martha Chaffee. And Martha, I asked her, how would she like her husband to be remembered after all of these years? And she said she would like him to just be remembered.

(BEGIN VIDEO CLIP)

MARTHA CHAFFEE, ROGER CHAFFEE'S WIDOW: I think roger gave his life for something he believed in. And I guess my only other regret is that he didn't get to fly. You know, that was his dream. And he really didn't get to fulfill his dream but he let others fulfill theirs.

(END OF VIDEO CLIP)

ZARRELLA: Now, this is a very difficult week for the NASA family. Today, of course, the anniversary of the "Apollo 1" fire. Tomorrow, is the 21st anniversary of the Challenger accident. And on February 1st will be the fourth anniversary of the "Columbia" accident. So it's a tough week, T.J. for the NASA family. T.J.?

HOLMES: Well my goodness, you are right. John thank you so much for us today. Pleasure.

NGUYEN: Well, the battle for Haifa Street.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Right however here, you see the corner of a building, sunlight, right? They're running between there and that blue door. See, there they go.

ARWA DAMON, CNN CORRESPONDENT: The insurgents are so close, the Americans can see them without binoculars.

(END OF VIDEO CLIP)

NGUYEN: Our Arwa Damon takes you inside this bloody battle next right here in the CNN NEWSROOM.

HOLMES: Plus President Bush says he can make your health care affordable, but do you understand his plan? We're breaking it down.

NGUYEN: And, check this out. Tucson snow? Say it isn't so. We're going to tell you, you're in the CNN NEWSROOM.

(COMMERCIAL BREAK)

HOLMES: Half past the hour now in the news. A deadly start to the weekend in Iraq. This scene, in Baghdad after two bombs ripped through a crowded market. More than a dozen people were killed.

NGUYEN: House Speaker Nancy Pelosi getting a first hand look at the situation in Iraq. Pelosi's congressional delegation has just completed a visit to that country. The group met with American troops at Camp Liberty in Baghdad.

HOLMES: And the CIA leak case in Washington, two of President Bush's top advisers, Karl Rove and Dan Bartlett, are served subpoenas as potential defense witnesses in the Lewis "Scooter" Libby trial. A legal source tells CNN it's not clear whether Rove and Bartlett will be called to the stand, however.

NGUYEN: In Hawaii, a success for the Pentagon's missile defense agency. A spokeswoman says an interceptor missile took out a dummy missile during a test over the Pacific Ocean. Now the system is designed to protect the U.S. from ballistic missiles.

HOLMES: Once it was one of Baghdad's most fashionable thoroughfares. Today, it's a bloody battleground. Haifa Street, located just outside the green zone, once home to Saddam Hussein's government, today is home to the new Iraq government and to coalition forces. Many Saddam loyalists lived on Haifa Street during is reign and U.S. officials say that after Saddam Hussein's downfall, insurgents used it as a base. Thirty insurgents died in a major battle on Haifa Street this week. And CNN's Arwa Damon is one of the CNN correspondents covering the battle for Haifa Street. She shows us the incredible dangers faced by the U.S. and Iraqi troops in this urban warfare.

(BEGIN VIDEOTAPE)

ARWA DAMON, CNN CORRESPONDENT (voice-over): This is where the battle for Baghdad was fought, out of apartments and high rise buildings that lined this major Baghdad thoroughfare. Listen carefully as the U.S. troops fought an Iraqi insurgent in a nearby building.

UNIDENTIFIED SOLDIER: Right over here, you can see the corner of a building, sunlight, OK? They're running between there and that blue door. You see, there they go.

DAMON: The insurgents are so close, the Americans can see them without binoculars.

UNIDENTIFIED SOLDIER: There you go. There you go. That's a moneymaker right there. DAMON: That material was shot by a Pentagon camera crew. At another building nearby, we had a different vantage point. We arrived on this rooftop near Baghdad's Haifa Street seven hours into the battle. The American troops, side by side with their Iraqi counterparts are being fired at from one of those high rises in the foreground. American Apache helicopters circle the building repeatedly to try to get a clear shot at the insurgents inside. But they can't. So the target building's coordinates are radioed to a site far from Haifa Street. And that is when it happened. A precision guided U.S. missile fired from a site unseen levels the building where the insurgents were holed up.

As soon as the building falls, the insurgent guns go virtually silent, just the occasional shot here and there. It's a reminder that the Iraqi army still needs the United States military. Colonel (INAUDIBLE) served in Saddam Hussein's army. The terrorists are better armed than we are, the brigade commander says, so we want the Americans to support us, especially for the tougher targets. On this day, Iraqi troops who had been fighting below bring in two insurgents wounded in a gun battle. One of these men threw a grenade off a rooftop at us, the soldier says. The other was firing with a machine gun. The wounded insurgents are put into an Iraqi ambulance and driven away.

Across the river from Haifa Street, another striker battalion is fighting alongside Iraqi forces in yet another Sunni stronghold. The aim there as it is here, to disrupt the insurgency so that eventually other troops can come in to clear, hold and rebuild. Some of the striker armored vehicles leave. Some of them stay to help Iraqi troops hold the ground for another day. Only moments after this day's gun battle ends, the civilians who remain in the area begin emerging just before the sunset. That is life on Haifa Street. Arwa Damon, on Haifa Street in Baghdad.

(END VIDEOTAPE)

HOLMES: We will have more on the battle for Haifa Street Sunday night at 7:30 Eastern. You can tune in for special coverage of this important battle.

NGUYEN: The state of Iowa is in the spotlight this weekend as the race for the White House heats up. Democratic Senator Hillary Clinton is on her first visit to Iowa in more than three years. The state holds its presidential caucus about a year from now and Clinton announced a week ago that she is in that race. Polls show she has catching up to do in Iowa. Former Senator John Edwards has spent a lot of time in the Hawkeye state and right now he's considered the Democratic front runner there.

And just days after his state of the union address, President Bush is focusing on one of the key topics in his speech and that is health care. He wants to use tax breaks to help millions of uninsured Americans get coverage. But some workers with employer provided plans will have to pay taxes on their benefits. In his weekly radio address, the president urged Congress to work with him on this issue.

(BEGIN VIDEOTAPE)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We must also work together to ensure that Americans have accessible and affordable health care. The government has an obligation to provide care for the elderly, the disabled and poor children and we will meet these responsibilities. For all other Americans, private insurance is the best way to meet their needs.

(END VIDEO CLIP)

NGUYEN: The president plans to make medical insurance more affordable and easier to obtain, but is it going to work? Joining us now to talk about it is Paul Ginsberg with the Center for Studying Health System Change. Thanks for being with us today.

PAUL GINSBERG, CTR. FOR STUDYING HEALTH CARE CHANGE: It's a pleasure to be here.

NGUYEN: All right, so the folks at home can really understand how this breaks down, explain to us the president's plan and what it means for tax breaks and for deductions.

GINSBERG: Sure. Well, for many decades, all employer contributions to health benefit plans have not been taxable to the employee, no matter how extensive the plan is. And the president is proposing to limit this exclusion from taxation to $7,500 a year for a single person or $15,000 a year for a family.

NGUYEN: Let me stop you there because if you're a single person, we have a graphic up so that we can better understand this, if you earn $50,000 and the insurance costs the employer $8,000, you will not be taxed $7,500. So what happened to that remaining $5 let you know?

GINSBERG: You'll have to pay tax on that $500. So your taxable income will be $50,500.

NGUYEN: Or you just get a cheaper plan?

GINSBERG: That's right or you can change your plan, which is what the president would prefer you to do.

NGUYEN: All right. So what are the two main benefits of this plan?

GINSBERG: Well, the two main benefits are it eliminates -- or really curtails a subsidy motivating people to buy what the president called gold plated health insurance. This is insurance that covers everything. The patient doesn't pay much and basically it removes the consumer's incentive to (INAUDIBLE) health care costs.

NGUYEN: And another one dealing with some of the benefits of this --

GINSBERG: Yeah, now let's go to the benefits. The president is also proposing a standard tax deduction for health insurance available to everybody of those same amounts, $7,500 and $15,000. And this means that people who don't have a plan will now be able to get a tax deduction if they buy one.

NGUYEN: You know, it's a little complicated and as people try to do the numbers and figure out what it means to them, some lawmakers say, forget about it, this thing is going to be dead on arrival. What do you think?

GINSBERG: Well, I think, you know, the tax deduction part is problematic, because it's not well targeted on those people having the most trouble affording health insurance. In a sense, it could be redesigned and it could cover a lot more people than its current form. So some lawmakers may not want to deal with it. Others may say, hey, look, the president has come forward with a revenue source. Let's use it more effectively than he does, so let's work with him and let's come out with something more to our liking, but still, using the revenues raised by the president by limiting the tax exclusion.

NGUYEN: There's a big push to get those without insurance some kind of coverage. What is this going to do for the folks who simply don't have any health insurance? Is it going to help them at all?

GINSBERG: Probably not much, because the problem is if your income is low, you may not be paying any taxes or maybe you're paying taxes at a 15 percent marginal tax bracket. So this subsidy is not going to be worth very much for you.

NGUYEN: On the flip side, for your employer, if they don't get the tax breaks, are they going to offer the same plans? Does this mean that your insurance, the coverage that you have isn't going to be the same, if fact you may not have as great a coverage as you would have had?

GINSBERG: For those employers that are offering the most expensive plans probably will change that so that they can get under the limit. It's not really an issue for the employer. When they pay, they get a tax deduction for their costs, just like wages. It's just that they do this to help out their employees who may prefer a less expensive plan and not have this tax obligation.

NGUYEN: We were talking about money and taxes. Looking deeper into this, I understand it's actually going to raise taxes from some 30 million Americans. How so?

GINSBERG: Well, those are the Americans that have the most expensive health insurance plans today paid for by their employers. They'll have to pay tax on a portion of that. That's not necessarily bad in the sense, you know, we spend $200 billion a year in revenue subsidizing health insurance, a lot of it going to higher income people with very good health insurance. Essentially what the president is doing is trying to shift this around somewhat and have some of it at least go to lower income people that are having some problems getting health insurance.

NGUYEN: But you say people with no coverage aren't really going to benefit that much. There's a lot of questions here as people look through this plan and see if it's something that they want for their lives. We'll see how it goes in Congress. Paul Ginsberg, the president at the Center for Studying Health System Change. We thank you for your time today.

GINSBERG: You're very welcome.

HOLMES: We want to pass along to you word we've just confirmed here at CNN of a huge blast in Pakistan. This happened near a mosque, one of the largest mosques in the northwest city of Peshawar in northwest Pakistan. Reuters reporting that at least 10 policemen were killed in this blast. Also Reuters reporting that several others officers were injured, but again, a blast, we have been able to confirm it happen in the city of Peshawar, which is in northwest Pakistan and it was near one of the largest mosques in this Pakistani city. Reuters reporting that 10 police officers killed and several more injured. We were working on our sources and our people on the ground trying to find out more about this and we will keep an eye on that and pass that information along to you as we get it.

NGUYEN: In the meantime, she tried to get a credit card in her name. However, someone else already did it. And it could happen to you. We'll explain next in the news room.

(COMMERCIAL BREAK)

HOLMES: How to rob a bank. No, we're not talking about that old stick 'em up thing (INAUDIBLE) and no, we're not condoning anything. We're just cautioning you here. The CNN special investigations unit has been looking into how thieves steal your good name. Our Drew Griffin has one story from the Emmy-award winning documentary.

(BEGIN VIDEOTAPE)

DREW GRIFFIN, CNN CORRESPONDENT (voice-over): David George was a modern day alchemist. He could turn junk mail into cold cash. Postal inspector Matthew Boyden and Harris County investigator Mike Kelly finally stopped him.

UNIDENTIFIED MALE: Probably the most prolific criminal I've ever arrested.

GRIFFIN: When they searched David George's suburban home, bundles of stolen mail were everywhere, in the drawers, the closets and attic.

UNIDENTIFIED MALE: (INAUDIBLE) identify theft and credit card fraud we found in that house.

GRIFFIN: There were credit card applications in the bathroom and 115 credit cards in every name but David George. Among them, Jessica Durrow (ph), 22 years old, a student with a poor credit record.

UNIDENTIFIED FEMALE: I wanted a credit card, but I was just told that I was under restriction at the time, that I could not apply for any or get any until I had some hospital debts cleared up.

GRIFFIN: But if Jessica couldn't get a card in her name, David George would do it for her. It took a combination of junk mail, a stolen identity, and a phony address. Days later, he had a credit card in Jessica's name.

UNIDENTIFIED FEMALE: Gold. Like money.

GRIFFIN: Gold like money for Bank of America. It would charge as much as 64.58 percent in finance charges and interest.

UNIDENTIFIED FEMALE: That's just ridiculously high. They figure they got a sucker. They should make a ton of money off of that.

GRIFFIN: But in fact, it was the other way around. David George used the credit card for cash advances, essentially loans totaling $2,100.

(END VIDEOTAPE)

HOLMES: Be sure not to miss the Emmy Award-winning "How to Rob a Bank" from the all new series, CNN, special investigations unit. That is tonight at 8:00 Eastern opinion.

NGUYEN: We want to get you back to our breaking news this morning. This just in, we have learned that the death toll has risen according to the Associated Press. A bomb went off near a Shiite Muslim mosque in the northwestern Pakistani city of Peshawar. Again, at least 10 people are reported dead at this hour. Some 35 wounded according to the Associated Press. Let's get some more information from the ground with CNN producer Mohsin Naqvi who is in Lahore, Pakistan. Lucent, what do you know so far about this blast?

MOHSIN NAQVI, CNN PRODUCER IN LAHORE, PAKISTAN: Reporter: Betty, we are just getting reports and CNN also got the confirmation from Peshawar that at least 10 people were killed and more than 40 people were injured in this deadly bomb blast, happened just half an hour back. The people who were killed include one of the Peshawar police chief who was also dead near the Shiite mosque. This is half an hour back. This is the second bomb blast in less than 24 hours. There was a bomb blast yesterday also in (INAUDIBLE) near (INAUDIBLE) in which suicide bombers tried to enter the (INAUDIBLE) in which two people were killed. Betty.

NGUYEN: And in this case, do you know, was it a suicide bomber? Was it a car bomb? How did this attack occur?

NAQVI: Police have cordoned off the area and police sources are telling CNN that they're still investigating. They're still trying to figure out whether it was a suicide attack or there was a bomb planted near the Shiite mosque. But later reports we are getting, they are not sure about it. Betty.

NGUYEN: And help our American viewers understand how close to the mosque did this blast occur and how many people were in and around the mosque at the time?

NAQVI: Hundreds and hundreds of people because this is a Shia gathering that are taking place all over Pakistan and hundreds and hundreds of people are coming out on the streets for morning, so the Pakistan police have already been on red alert and there were hundreds of police -- the police told CNN that there were more than 2,000 people gathered at that time inside and outside the mosque and that is why they are having this big number of casualties.

NGUYEN: So some 2,000 people gathered inside and outside the mosque, which leads me to wonder, so far, reports of 10 dead and some 40 injured. Do you expect that number to rise?

NAQVI: Yes. There are more than 18 people who are in critical condition, according to hospital sources. It was confirmed to CNN that 18 people are in critical condition right now.

NGUYEN: And as for claims of responsibility, any word to that? And also, any word as to who officials suspect may have been behind this blast?

NAQVI: Not yet. Nobody has claimed responsibility. Nobody has claimed responsibility for yesterday's attack, also, but according to the ministry officials, they are expecting more in this next two or three days.

NGUYEN: So they are expecting more suicide attacks. In that vein, though, what is being done to product the folks in the area?

NAQVI: The army has been called in. The rangers have been called in. The thousands and thousands of police in the north (INAUDIBLE) have been posted in the major cities of Pakistan. They are trying, they're searching everybody who is going on for this morning's session in this mosque. They are not letting anybody to get in without search, so they are trying to prevent it, but it's a suicide attack (ph). It's difficult to prevent it. Betty.

NGUYEN: But as a word of caution, they're not asking people to stay home and not attend services at the mosque. It's just a word of caution?

NAQVI: No, not really, because the Shia gatherings will be taking place in the next two and three days and the biggest Shia gathering will be on Tuesday in which thousands and thousands of people will be out on the street.

NGUYEN: All right. CNN producer Mohsin Naqvi joining us live from Lahore, Pakistan where so far we have learned that at least 10 people have been killed in a blast near a Shiite Muslim mosque in the northwestern Pakistan city of Peshawar. Some 40 people wounded in this, as well and unfortunately, we have learned that that death toll is expected to rise, but of course, CNN will stay on top of the story and bring you the latest as soon as it comes into us.

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HOLMES: Again, updating you on the breaking story we've been keeping an eye on out of Pakistan, specifically in northwest Pakistan in Peshawar, there has been a bombing near a Shiite Muslim mosque that has killed at least 10 and another 40 have been injured in this bombing. Also we understand more people there on the ground that another 18 are in critical condition and possibly the death toll could go higher, but again, 10 dead after a bombing at a Shiite Muslim mosque in Peshawar which is in northwest Pakistan as you see there, no claims of responsibility just yet. This is the second bombing in two days that we've seen in Pakistan, no word and no claim of responsibility but it's a situation we're keeping an eye on in Pakistan (INAUDIBLE) after a bombing at a Shiite mosque in Peshawar in northwest Pakistan.

NGUYEN: And of course, we'll have more on this at the top of the hour. The NEWSROOM does continue with CNN's Fredricka Whitfield.

FREDRICKA WHITFIELD, CNN CORRESPONDENT: Good to see you guys, happy Saturday. A lot on tap of course in the noon hour and beyond. Well, they say bring New Orleans back. Well, a lot of folks are coming back to New Orleans, but here is a problem. What to do with their kids. Apparently there are waiting lists in many of the schools in what are considered recovery districts. One council member says it's not only illegal to keep kids out of school. It's unconscionable not to have a place for them to go.

Then at 2:00 Eastern, a teenager serving time for consensual oral sex with a minor. He was 17; she was 15. An effort is under way right now to push for his re-sentencing based on the new Georgia state law. Our legal experts weigh in on the topic. That will again be featured in depth at 10:00 Eastern this evening in the news room.

NGUYEN: It's a really interesting case and we'll see how that plays out. Thank you, Fred. Looking forward to that.

HOLMES: Thank you ma'am.

NGUYEN: Well, she did announce on the web and now Hillary is hitting the campaign trail. We are taking you life to Des Moines, Iowa, because the race for '08 has already started here in the news room.

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NGUYEN: We are still following breaking news out of Pakistan where a blast occurred at a mosque there killing at least 10 people. Of course, there's going to be much more on this because CNN NEWSROOM continues with Fredricka Whitfield.

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