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Surprise Rate Cut; Mine Rescue Turns Tragic; Killer Storm Puts Entire Towns Under Water; Michael Vick Must Decide Today Whether to Accept Deal

Aired August 17, 2007 - 09:00   ET

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

HEIDI COLLINS, CNN ANCHOR: You are in the CNN NEWSROOM.
I'm Heidi Collins. Tony Harris is off today.

Watch events come into the NEWSROOM live on August 17th.

Here's what's on the rundown.

Three rescuers killed in a new mine cave-in. What does the setback mean for the six trapped Utah miners?

Now or never for NFL star quarterback Michael Vick. The deadline for a reported plea deal in a dogfighting case right now.

And financial shock and awe. The Fed cutting a key interest rate last hour. Will the markets -- will the move calm those markets?

Opening bell 30 minutes away -- in the NEWSROOM.

We are following two breaking stories this morning from the heartland to the heart of the nation's economy.

First, mine rescue operations in Utah halted right now after a deadly cave-in. Three workers killed, six injured. The fate of those trapped miners still unknown.

Extensive live coverage just about a minute away from now.

But first, we are watching Wall Street after a surprise rate cut by the Federal Reserve. It could have a big impact on your wallet.

Let's get straight to Ali Velshi right now in New York.

Ali, this is very rare.

ALI VELSHI, CNN CORRESPONDENT: This is very rare. In fact, we're still trying to get our head around the last time this happened.

I want to be clear now. This is not the fed funds rate, the one that we always report on, the one that's been 5.25 percent for more than a year, the one that's tied to prime rate. This is not that.

The Fed has not cut that rate. The Fed has cut what it's called its discount rate. That is the rate at which banks can borrow money on an overnight or emergency basis from the Federal Reserve itself. These are banks where people come to the bank and say, I'm concerned about my investments, I'm concerned about my money. I want to take that money out.

You know, banks work on a basis that the money doesn't just sit there. It's flowing between different banks and different companies.

If a bank is short of money in the short term, it can go to the Fed now and borrow money for 5.75 percent. That is a 50-basis point cut. That's half a percent cut.

So the Fed, you could call it a surgical strike on the economy. It's not the broad effect that you would have by cutting the fed funds rate, which would affect all of the economy, which the Fed is concerned about doing. This is about the banks. If banks are running out of money, if banks are in trouble, they can get a lower interest rate.

Now, the effect here is that markets are now rallying. Markets around Europe which are still open, which had been in the red all morning and for most of the -- most of the overnight, are now positive. The Dow Jones futures indicate -- let me go out on a limb here, Heidi -- maybe a 200-point gain pretty close to the open.

Now, the trick is, how long does this last?

COLLINS: Exactly.

VELSHI: How big is a deal is this? Nobody suggests this is the cure for this problem because it doesn't deal with the underlying mortgage crisis. And if the Dow does rally 200 points, I mean, it's lost a thousand in the last two weeks.

COLLINS: Yes.

VELSHI: So, this doesn't solve the problem, but this is people been saying to the Fed, get involved, do something. The Fed is saying, OK, here's something.

COLLINS: All right. Well, we shall see. Opening bell in about 30 minutes.

Ali, we will talk to you then.

VELSHI: Absolutely.

COLLINS: Thank you.

Disaster on top of tragedy. The mine rescue effort in Utah halted now after it takes a deadly turn.

Here's what we know right now.

Three workers killed, six others injured in a second collapse at the Crandall Canyon Mine. A cave-in was apparently triggered by what a mine spokesman calls a seismic bump or a mountain bump. That's when pressure causes chucks of coal to erupt from the walls of the mine.

Officials suspended the underground rescue effort until they could determine whether conditions are safe. The fate of the six miners trapped in the August 6th collapse still unknown.

The latest now live from Huntington, Utah. CNN's Brian Todd is following developments.

Brian, when is a decision likely on getting back to that underground rescue effort?

BRIAN TODD, CNN CORRESPONDENT: Well, Heidi, that's the key question right now. That decision could come within the next couple of hours or maybe in the next day or two. But right now, this operation, at least the digging part in that main tunnel, is suspended.

But I just got off the phone with an aide to Governor Jon Huntsman, who told me that the drilling operation from the top of the mountain where they're going down into these chambers with drills to try to find any sign of these trapped miners, that operation is going to continue. Now, whether it's going on right at this very moment is unclear, but that fourth hole that they're drilling from the top of the mountain is going to proceed.

Now, there is going to be a very critical decision that's going to have to be made by federal mine safety officials as to when to resume the actual digging operation. That is key, because obviously with this mountain bump and the tragedy that occurred last night, they are trying to assess the safety situation here and determine whether they can even go any further. But also, some critical questions are going to be asked about what led up to this point and the safety procedures that were in place up to the point that this latest mountain bump occurred.

One key piece of information that we have been getting over the past couple of days is that 12 miners during this rescue operation have asked to be reassigned because of concerns for their own safety. Now, this was before last night's event occurred.

I spoke with Robert Murray, the mine owner, about those miners' concerns about what they had asked to do to be reassigned. And here's what he had to say.

(BEGIN VIDEO CLIP)

BOB MURRAY, PRESIDENT & CEO, MURRAY ENERGY CORP.: Not one of these 12 men said to anybody that they wanted to be relocated because it was unsafe. Some of them have family members in there that are buried. And for other reasons they asked to be relocated, but the word "safe" or "safety" has never been brought up.

But of course, the whole endeavor is an operation that we must keep safe. It is a dangerous operation. It has nothing to do with these miners asking to be relocated.

(END VIDEO CLIP)

TODD: Now again, that was mine owner Robert Murray about a day before this latest event occurred that killed the three miners and injured the six more. And he's making a very fine point of difference there by saying that these 12 people, yes, they did ask to be reassigned, yes, they were concerned for their own safety, but that no one in a broader sense said the mine was unsafe. But now he is going to have to answer some very critical questions about whether it really was unsafe in there, and they hope to hold a briefing in the next couple of hours -- Heidi.

COLLINS: Yes. Boy, such a precarious position they are all in.

Brian Todd, thanks so much for the latest.

Also want to remind you that we are looking forward to a news conference very shortly now coming from Castleview Hospital. Not exactly sure of the time, but we will, of course, monitor that and bring it to you. It could be some information about the latest injured miners overnight there.

And also, stay tuned for continuing coverage on the mine rescue disaster. Live coverage of the mine news conference at 1:00 p.m. Eastern in the NEWSROOM.

A killer storm blasting Texas with torrential rains and strong winds. The remnants of Tropical Storm Erin blamed now for as many as seven deaths in the Lone Star State.

Two of the victims were killed in Houston when a water logged roof of a storage unit collapsed. Up to 10 inches of rain fell in that city and San Antonio. And more heavy rain is in the forecast.

But the weather worries don't stop there. Hurricane Dean is closing in on the Caribbean.

We will tell you more about that and track that storm with Bonnie Schneider.

First, we want to get directly to Castleview Hospital and the situation on the miners.

(JOINED IN PROGRESS)

JEFF MANLEY, CASTLEVIEW HOSPITAL CEO: So, we did want to give just a quick update on the miners that came to our facility last night.

Obviously, we know that one didn't make it. And the -- we want to report on the one miner who's still in the hospital.

He is stable, and we expect him to probably be released in two to three days. He is in the ICU, and we do expect him to do well.

And then early this morning, we were able to discharge three of the miners that came in last -- they were the three that came in, the last three that came to the hospital. And we're happy to announce that they were treated and they were able to go home late -- early this morning.

So, that really is our statement.

Is there any question? I'll answer just a couple questions.

QUESTION: It's five (ph), correct?

MANLEY: Well, one was transferred to Salt Lake. And I don't have a report on him.

QUESTION: We heard that you were...

MANLEY: I'm sorry, Provo. He went to Provo.

QUESTION: We heard that you were treating three overnight. So it's more than that? Three overnight?

MANLEY: We had -- we had one admitted and three that we treated that were discharged early this morning. So we kept one overnight. He was actually admitted. And then three were treated, and early this morning they were -- they were discharged.

QUESTION: How did they go from serious condition to being discharged so quickly?

MANLEY: Well, they're all serious when they get here. They all come in on boards, they come in with their necks stabilized, et cetera. And until they're diagnosed and triaged and those diagnostics are done, they're all considered serious.

QUESTION: Can we just clarify the number? One deceased, one released shortly after arrival last night, you indicated when you spoke...

MANLEY: Yes.

QUESTION: Three still held.

MANLEY: They were held until early this morning and then one transferred. I'm sorry. One admitted.

QUESTION: So one is still in the hospital?

MANLEY: One is still in the hospital.

QUESTION: Can you talk about his condition? What kind of injuries?

MANLEY: I think I did. He's -- he's stable right now.

QUESTION: And his type of injuries?

MANLEY: He had a back injury. QUESTION: Last night you were talking about broken bones, head trauma. There really kind of was the sense that these guys were really banged up. Was it not as severe as initially thought?

MANLEY: I think several of them were very severe, yes. I mean, obviously three of these miners died.

QUESTION: Right. But it just seems unusual if it's really severe for them to be discharged within 24 hours.

MANLEY: Like I said, when I came out last night and we talked about serious, they're all serious when they get here.

QUESTION: What types of injuries did the discharged patients have? Broken bones or what kinds of things?

UNIDENTIFIED FEMALE: Bumps and bruises. Severe bumps and bruises. Not minor.

QUESTION: Can you tell us your name?

UNIDENTIFIED FEMALE: No. We do not release names.

QUESTION: Jeff, my math is off here. I'm counting seven when you...

MANLEY: OK. One...

QUESTION: When you say three release...

MANLEY: One died. One got transferred. One's still in the hospital. Three were treated and released.

QUESTION: So that includes the original release?

UNIDENTIFIED FEMALE: Yes.

QUESTION: From early evening?

MANLEY: Yes.

QUESTION: OK.

MANLEY: Anything else?

QUESTION: The deceased, can you tell us about the injuries that he suffered -- that person suffered?

MANLEY: You know, I never saw him, so I don't know. I mean, I did not...

UNIDENTIFIED FEMALE: Generalized trauma.

QUESTION: And you said mine workers earlier. Were these not rescue workers? Can you clarify that?

MANLEY: You know what? My understanding is they were miners that were...

UNIDENTIFIED FEMALE: Working on the rescue.

MANLEY: ... that were working on the rescue.

QUESTION: OK.

MANLEY: But I don't know -- I'm not at the mine, so -- but that's my understanding.

QUESTION: (OFF-MIKE)

MANLEY: The families did not stay overnight.

QUESTION: (OFF-MIKE)

MANLEY: We had two counselors here last night.

QUESTION: Again, quick recap. I hate to sound repetitious here. I just want to make sure we have the numbers right. There were six total that came into the hospital here. One dead, one in stable condition right now in the ICU. Is that correct?

MANLEY: Yes.

QUESTION: One has been transferred to Utah Valley Medical Center in Provo. And three others have been treated and released within the last -- I guess it would be...

MANLEY: The last three or four hours.

QUESTION: OK.

MANLEY: Yes. That's six. Isn't that six? I've been up all night, folks, like many of you.

QUESTION: (OFF-MIKE)

MANLEY: Yes.

QUESTION: Can you tell us about how he is doing? Are there any other injuries?

UNIDENTIFIED FEMALE: Mostly pain. He's in pain.

QUESTION: Did you guys make that pronouncement or was he deceased (INAUDIBLE)?

UNIDENTIFIED FEMALE: Our physician made the call.

MANLEY: Yes, our physician pronounced.

QUESTION: Shortly after arrival or...

UNIDENTIFIED FEMALE: It was shortly.

QUESTION: Let me rephrase. Did he come in with any vital signs?

UNIDENTIFIED FEMALE: Yes.

MANLEY: Yes.

Anything else?

All right. Thank you, folks.

Oh -- oh, one more thing. This is off the record. This is a physician's...

COLLINS: OK. Well, since he said it's off the record, we are going to move on.

But I just want to give you a quick update of what was said there.

Castleview Hospital, that is the CEO, Jeff Manley, talking. The latest on the six people that were brought to his facility.

One, very unfortunately, died. One is still in the hospital. One has been transferred to another hospital. And then three were treated and released. So that equals the six workers where that collapse happened last night, and the very latest on them.

So, from those rescuers, into survivors now, six workers that were injured in the new mine cave-in.

Our chief medical correspondent, Dr. Sanjay Gupta, is joining me now. He's been covering the story all through the night.

Tell us a little bit about -- you know something more about the individual who was transferred?

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Yes. One of the patients we're hearing was airlifted to a big university hospital, a level one trauma center.

As you know, those are hospitals that have more resources, they typically have neurosurgeons, orthopedic surgeons standing by. We were sort of most concerned about this patient requiring a transfer, requiring an airlift like that...

COLLINS: Right.

GUPTA: ... to a big university hospital. We got some information.

The patient at the university hospital appears to have non-life- threatening injuries at this time. So that's certainly good news.

We don't know specifically what the pattern of injuries were, but that's one of the choppers, maybe one of the ones that actually took this patient to the university hospital. But it sounds like at least a little bit of good news there, Heidi. COLLINS: Yes.

GUPTA: And we were most concerned about this -- out of the survivors, this one in particular requiring that airlift. It sounds like he or she is going to do all right.

COLLINS: Yes. Boy, I don't know about you, but I couldn't believe what I was watching last night. It just so complicates and makes everything so much scarier. I mean, I can't think of a better word, because there are still these six trapped miners inside.

GUPTA: Yes. And the fact that these folks were trying to save them while this all happened, it's just sort of mind-boggling.

And we watched it unfold. There were three ambulances, there were four ambulances, there were two choppers, there were several different hospitals involved. And at the heart of all this, the six miners still down there.

You know, people talk a lot about the conditions necessary for survival. And again, you and I have talked about this, but, you know, you can survive for minutes without oxygen. You can survive for days without water and weeks without food.

COLLINS: Weeks.

GUPTA: But we don't know what the nature of injuries they might have, exactly where they are. So it's a very, very tough situation at this point.

COLLINS: Yes. Boy, it is -- and there's more specifics there on the screen.

We know that they have shelter. That's always another one. But as you said, I mean, that's a key point. We just don't know the situation underneath and the extent of possible injuries.

GUPTA: And there is an emergency medical response plan which we've actually looked at, been sort of analyzing overnight. We're not sure, but within 2,000 feet of a workable space they're supposed to have these caches of supplies, as you know.

COLLINS: Yes.

GUPTA: And specifically, I don't know if you knew this, but 10 gallons of water, supposed to have enough meals ready to eat for 96 hours.

COLLINS: MREs.

GUPTA: MREs. And enough oxygen, sustainable oxygen for 96 hours, as well.

In addition, they keep soda lime, which is basically used to draw carbon dioxide out of the air...

COLLINS: Yes. I did not know that.

GUPTA: ... which can make -- so those -- we don't know if they got to them. They're supposed to be there within 2,000 feet of a workable space, but that sort of is another part of the equation in terms of how they might be doing down there.

COLLINS: Yes. Wow. All right.

Sanjay Gupta with the very latest for us.

Sanjay, thanks so much for that.

GUPTA: Thank you. Sure.

COLLINS: Well, a surprise interest rate cut. The Fed makes a strong move to calm financial markets. Will it stop the Dow's whiplash performance? Well, it's not open yet, but we're going to find out. Opening bell just minutes away.

Soggy soil can't hold Erin's deluge. Could Dean soak Texas, too?

Live in the CNN hurricane center shortly.

Michael Vick not the first NFL player in trouble with the law. Coming up, we'll talk with an attorney who helped two stars get back on the playing field.

Put away the tool kit. NASA tells Endeavour astronauts to stand down on a repair job.

Details ahead.

(COMMERCIAL BREAK)

COLLINS: Want to get you up to speed immediately on Hurricane Dean.

Bonnie Schneider in the hurricane center now with the very, very latest.

(WEATHER REPORT)

COLLINS: And back in Texas, the focus is on Erin. The killer storm put entire towns under water.

CNN's Sean Callebs is standing by now live in hard-hit Houston.

Sean, this is obviously a very different situation than yesterday morning when we talked to you.

SEAN CALLEBS, CNN CORRESPONDENT: Yes, it really is.

We have moved inland. We were in Corpus Christi yesterday.

And I don't want to -- like right now, the conditions are bright and sunny, but it is not going to remain like this. I want to tell you just the punishing effect that Erin had on parts of central Texas.

If you look behind me, you can see police tape wrapped around a building. This is actually a grocery store. And when seven or so inches of rain fell on this area yesterday, it collapsed the roof, killing two people inside that grocery store. Another person in the Houston area also died, a driver of a 18-wheeler, when he ran off the road into a retention pond.

And even though the conditions out here look great right now, it is still -- a flashflood watch is still out. And they are concerned that they could get as much as four to six inches of rain here in the Houston area.

Now, if we -- I move a little bit to the south, a little southwest to San Antonio, horrific conditions there, as well. The teeth of Erin blew into that area pretty much at rush hour yesterday, swamping roads, scores of roads, including parts of the interstate had to be closed.

People were abandoning their cars. And at one point, one gentleman left his vehicle and only found safety in a tree before he was rescued.

But there was also a head-on collision during the storm yesterday that claimed three lives, Heidi. And authorities aren't at this point saying that the storm caused that accident, but certainly they're looking into it as one of the factors that led to that.

And we heard Bonnie talk about Hurricane Dean. People here are worried about that, too. The ground is saturated. They have had basically nonstop rain since March.

And what they think back to is 2001. Hurricane Allison came through the area, just sitting over the area for 48 hours.

COLLINS: Right.

CALLEBS: Bringing tons of rain, Heidi. And they're fearful that's going to happen again.

COLLINS: Yes, I'm sure they are very anxious.

Sean Callebs for us in Houston.

Sean, we will check back with you later on. Thanks so much.

After a heart-pounding week on Wall Street, the Fed takes action to stem the meltdown. IT just cut the primary discount rate a half point to 5.75 percent. That's what it charges banks for loans. We will keep a very close watch as the opening bell rings just moments from now.

And the clock running out on a quarterback. Michael Vick facing a decision right now -- accept a reported plea deal or go to trial in a dogfighting case.

(COMMERCIAL BREAK)

COLLINS: Time's up for Michael Vick. Reports say the NFL star quarterback must decide today whether to accept a plea deal. Two co- defendants in court this hour agreeing to their own plea deals in the dogfighting case.

And that sets up their possible testimony against Vick.

Our Rusty Dornin has been following the story and she joins us now.

OK. So today is the day. What's he going to do?

RUSTY DORNIN, CNN CORRESPONDENT: Well, that's the question -- will he or won't he?

COLLINS: Yes.

DORNIN: I mean, they're saying there's an absolute deadline, but the real deadline is that on Monday, another grand jury is meeting in Richmond, and they may come up with what they call superceding indictment, which may involve more charges that could involve gambling and racketeering and that sort of thing.

COLLINS: Yes.

DORNIN: So, it's in his best interest if he is going to take a plea deal to do it today.

Meantime, the two co-defendants apparently are in court right now. That's Purnell Peace and Quanis Phillips. And we should be seeing exactly what those plea agreements are after they get out of court. And presumably, there's going to be a lot of finger pointing once again against Michael Vick.

COLLINS: Yes, and that's kind of what we thought would happen when we learned that the co-defendants were going to be, you know, making this plea deal.

What about the chances if, in fact, it does goes on -- he doesn't take the plea deal and it does go on to federal court?

DORNIN: It is a big chance, because apparently in federal court 90 percent of the cases are plea deals. And they have a 95 percent conviction rate. So he is taking a huge risk here, because if he is convicted of racketeering charges, there is the possibility he could have a lifetime -- be banned for life from the NFL.

COLLINS: Yes. And those are the additional charges that we are talking about.

I wonder, why weren't those charges filed in the beginning?

DORNIN: Well, what happens in cases like this is you get -- they start with the smaller fish. You know? The prosecutors do, and they convince them to go into these plea deals. And they start giving out more information, more evidence.

COLLINS: They spill their guts.

DORNIN: Exactly. And this may go beyond Michael Vick and this -- his co-defendants, because they were talking about dogfighting enterprises in five other states. So who knows? This could lead to many other people in the end.

COLLINS: All right.

Well, Rusty Dornin, I know you are watching it for us today. Let us know if you learn anything new. OK?

All right. Rusty, thank you.

Meanwhile, we are just...

ANNOUNCER: Live in the CNN NEWSROOM, Heidi Collins.

COLLINS: Well, it's 9:29:05 and we are awaiting that all- important stock market opening bell. We are waiting to hear what exactly the effect will be on this Fed cut of the discount rate.

I want to go ahead and directly bring in Ali Velshi to talk a little bit more about this.

Ali, we are hearing futures are up. Right?

VELSHI: I'm looking at the futures number, 226 points higher right now.

COLLINS: Wow.

VELSHI: If you make a quick math in my head based on an adjustment with what we call fair value, my conservative guess is that when that bell rings, you are going to see within a couple of minutes 182-point surge...

COLLINS: OK.

VELSHI: ... as a minimum. Some calculations indicate higher than that. That's because the Fed has cut what it calls the discount rate. It's the rate at which it lends money to banks that need money overnight.

That rate is now 5.75 percent. This doesn't affect the Fed rate that is attached to the prime rate that you and I borrow against. That doesn't -- this doesn't lower your mortgage rate, it doesn't lower your arms, it doesn't affect any of that, Heidi.

This is the rate at which banks that might need money directly from the Fed can get it.

Now, the Fed is the lender of last resort to the nation's banks. If they can't borrow money from other banks or raise money in other ways so that they can continue their operations, the Fed is able to borrow money.

Now, we're looking at the Dow. It has just opened. We're going to move over, I think, to that board in a moment. But we're up. We're up 16 points. It's moving up as we speak.

One of the problems we're going to see this morning, Heidi, is that the biggest gainers in a situation like this are the banks. And the banks and investment companies have been leading this market lower for several weeks.

Because we're going to see that gain, it's going to be fast. It's going to be pretty furious. We're about to cross 100 points right now. You might actually see trading have to slow down because it might be too much for the New York Stock Exchange and the Dow Jones to handle.

We're at 120 points right now, Heidi. We're already 120 points higher. I was saying that we'll see 182 very quickly. If we pass through that then you know that this is on the way up. And that's in the next hour.

COLLINS: Ali, this is like a little play-by-play for you, because that camera just could not move any slower and we were trying to get the big board up so everybody could see it.

VELSHI: Yes, well, I'll tell you, we're at 140 points higher now.

COLLINS: But, we, of course, are at the mercy of the New York Stock Exchange so, you just keep telling us what you're seeing there.

VELSHI: Yes. It's 100 and -- we're at about 140 points here.

Now, what happens is a lot of people have been betting, because of this mortgage crisis, that the banks will, in fact, continue to suffer. They'll have people who don't pay their mortgages...

COLLINS: There we go.

VELSHI: There we go -- 136 points, 140.

What's happening here is that these people were betting against the Dow. They were betting against these banks. So by the Fed injecting this money -- there we go, 182 points is what I told you.

COLLINS: Yes.

VELSHI: We're just past that now.

COLLINS: Yes.

VELSHI: So now we're going to have to see how much higher it goes at the beginning.

But once that's all through, once the people who are betting against those banks sell their stocks and they're not betting anymore, what happens then? Does this sustain for the whole day? Because you've seen how much these markets have moved around just in the course of one day. And is this the end of the problem?

It doesn't solve anybody's mortgage problem. It doesn't solve the underlying home price situation. So this is a very quick fix. It may help a lot. This may not be the answer.

COLLINS: Well, I think it might be worth pointing out, too, Ali, that this is really the only rate that the Fed directly controls.

VELSHI: (INAUDIBLE).

COLLINS: I mean people are saying they should cut interest rates, they should cut interest rates. But this is really the deal.

VELSHI: Right. They -- the Fed rate we talk about, the 5-1/4, percent, the Fed doesn't cut or do anything with that. What happens is -- one of my great colleagues here, Gene Block (ph), just gave me an analogy. He said it's like a rubber ducky in a tub -- you can lower or raise that rubbery ducky by adjusting the water flow. You either turn more water on to make it go up or you take water out to make it go down.

The Fed discount rate, the one they cut today, that is the one that they actually have control over. They only lend to banks with that money, but they can say 5.75 percent, that's what you're going to get money at. They can actually state that rate.

So this is one of the tools that they actually have control over. People were calling for the Fed to get involved. A lot of average investors were calling for the Fed to get involved, saying hey, why don't you help us out of this mess. So the Fed got involved.

And now we've got 221 points. We're not even three minutes into trading.

COLLINS: All right. Any chance -- and I realize that this is kind of looking at your crystal ball, as we always ask you to do -- but any chance that the Fed could still cut those interest rates after all of this?

VELSHI: Yes. Good that you asked. There is a chance and most major economists are suggesting that by the end of the year, you'll see a 50 basis point, or half a percent cut. So, from 5.25 percent to 4.75 percent.

Remember, the prime rate, which is what many people's loans are connected to, is 3 percent higher than that. So right now, if you have a loan connected to prime, prime is 8-1/4. we're thinking it's going to go to 7-3/4.

But this move is independent of that. This move doesn't -- doesn't mean that the chances of that rate cut are any better. It's a separate move entirely.

COLLINS: Exactly.

VELSHI: This is about making sure the banks of America have enough money to continue doing business, that nobody starts to have to go to a bank and say I've got to pull my money out because I'm scared of what's going to happen.

COLLINS: Certainly. It makes lending a little bit easier.

VELSHI: That's right.

COLLINS: I'm trying to stay on the big board because I'm just seeing it go up and up.

VELSHI: And it's 275 -- 275 it touched.

COLLINS: Yes.

VELSHI: So, you know, remember, this Dow was down well over a thousand points in one month. So even a day's rally -- we have to -- we have to see sustained growth. We have to see this thing -- people getting in.

COLLINS: Right.

VELSHI: There are a lot of mutual fund managers -- I think I was talking about this yesterday -- Merrill Lynch interviewed 4,000 mutual fund managers who had pulled out some of the money from their stocks. They've sold stocks that they don't like and they're holding some money, waiting to get in.

Is this the day that they get in and start buying or do they want to wait a little bit longer to see where this breaks down?

COLLINS: Yes, well, that is the big question.

VELSHI: This could be a few weeks before it settles in.

COLLINS: Absolutely. It's sitting at 13,130 now.

VELSHI: Yes, we could. I mean if this sustains through the course of the day, Heidi, this could be a very big day for the stock market. Let's hope it does.

COLLINS: 15,000 by Christmas, Ali. The Heidi Index.

VELSHI: 15,000 by Christmas.

COLLINS: I'm telling you.

All right, thanks so much, Ali. We will keep checking back with you. Appreciate it.

VELSHI: OK.

COLLINS: Making their mark this week -- rescue effort tragedy in a Utah mine.

Just one day after there were sounds that raised hope, there are now cries of sorrow. Underground sensors had detected noise in the collapsed mine on Wednesday. While officials weren't exactly sure what those sounds were and whether the six trapped miners are still alive, the news was welcomed by rescuers.

Now, three of those rescuers are dead in last night's accident.

Early this morning, Utah's governor praised their sacrifice.

(BEGIN VIDEO CLIP)

GOV. JON HUNTSMAN, JR. UTAH: There is nothing more selfless than giving your life in pursuit of saving another. And that's exactly what we witnessed tonight -- the loss of life by those who went in the mine whose sole purpose was to save the lives of others.

(END VIDEO CLIP)

COLLINS: The governor and mine officials will have more to say at a news conference at 1:00 p.m. Eastern.

We'll have that for you live.

Michael Vick not the first NFL player in trouble with the law. Coming up, we'll talk with an attorney who helped two stars get back on the field.

KARA FINNSTROM, CNN CORRESPONDENT: I'm Kara Finnstrom in Price, Utah, where we just got good news about some of the rescuers involved in that second cave-in overnight. A live report coming up.

COLLINS: A few feet and branches separating this man and raging flood waters -- saved by a tree. Incredible pictures out of storm ravaged Texas.

(COMMERCIAL BREAK)

COLLINS: We quickly want to update some of the news that we are following this morning.

The case of Michael Vick -- we are learning from the Associated Press -- we've been telling you about two co-defendants that were in court this morning. Well, we are learning now that those two co- defendants have actually pleaded guilty to federal dogfighting conspiracy charges. Again, those two co-defendants -- the names, Purnell Peace and Quanis Phillips -- have pleaded guilty to federal dogfighting conspiracy charges, according to the Associated Press.

We are working to confirm that story for you and what it will mean as the case against Michael Vick goes on. We're going to be talking with Ed Garland. He is a defense attorney. You may remember, he represented Ray Lewis years ago in that double homicide with the Baltimore Ravens. So we will get to him and find out more about what this could mean in just a few minutes.

Also updating the breaking news out of Utah. The effort to rescue six trapped miners takes a deadly turn. Here's what we know right now. Three rescue workers killed, six others injured in a second collapse at the Crandall Canyon Mine. A cave-in was apparently triggered by what a mine spokesman calls a seismic bump or a mountain bump. That's when pressure causes chunks of coal to erupt from the walls of the mine.

Officials suspended the underground rescue effort until they can determine whether the conditions are safe. They say the above ground work to drill a fourth hole into the mine will continue.

Injured rescuers -- five of the six were treated at Castleview Hospital in Utah. One remains there this morning.

Our Kara Finnstrom is there -- Kara, tell us how the injured men are doing.

FINNSTROM: Well, Heidi, this is the first good news that we have really had to report. It's been a horrific 24 hours for this small mining community. And, as you mentioned, six of these that were injured last night were brought here by ambulance.

This hospital just about 45 minutes from the mine site. It is the closest local hospital.

What we have been reporting to you up until now is that one of those six died shortly after being brought here. Another was transferred to a larger hospital in Provo with trauma facilities that are better for suiting (ph) serious head injuries. And then the third we knew about last night was actually treated and released right away. So that was some good news.

What we've learned this morning is that two more of those rescuers that were brought here also treated and released. They suffered from what the nurse called crush injuries -- bruises and abrasions and things that were actually caused by the weight of this mine caving in. And then we also heard about the final rescuer that was being treated here. He is said to be in stable condition.

And let's listen to, actually, what the hospital CEO told us about how he's doing.

(BEGIN VIDEO CLIP)

JEFF MANLEY, CEO, CASTLEVIEW HOSPITAL: Obviously, we know that one didn't make it. And the -- we want to report on the one miner who's still in the hospital. He is stable and we expect him to probably be released in two to three days. He is in the ICU and we do expect him to do well.

(END VIDEO CLIP)

FINNSTROM: And, Heidi, this is a look at the morning newspaper here, what a lot of people are waking up to. Much of this news coming in overnight. A lot of people not really learning about it until they woke up this morning. So, really, a devastating blow for this community. But at least some good news coming out of this hospital this morning that, again, only one of those still being treated here and he is expected to be released within two to three days.

COLLINS: Yes.

Kara Finnstrom with the very latest for us from Utah. Kara, thank you.

And stay tuned for continuing coverage on the mine rescue disaster. We're going to be hearing of a live news conference coming up at 1:00 p.m. Eastern. We, of course, will carry that for you live in THE NEWSROOM.

Searching for survivors, recovering the dead from collapsed buildings. Peru struggling with the aftermath of a powerful earthquake.

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COLLINS: Question for a quarterback -- will Michael Vick stand alone or agree to a plea deal in the dogfighting case against him?

The answer apparently must come today. Just moments ago, according to Associated Press reports, two co-defendants pled guilty in federal court in Richmond, Virginia. A third co-defendant already pled guilty. That would set the stage for all three to testify against Vick.

Vick and his attorneys have been considering a deal from prosecutors. The reported deadline is today. Now, if Vick turns down the deal, he would likely face more charges in a superseding indictment -- possible charges of racketeering, in fact.

So, decision time for NFL star quarterback Michael Vick. Possible prison time and his career on the line in a reported plea deal in this dogfighting case.

We have defense attorney Ed Garland, who has represented two other NFL stars who faced serious charges and later returned to the field.

All right, so CNN now confirming, Ed, that these two co- defendants -- and we are talking about Purnell Peace and Quanis Phillips -- have pled guilty to these federal charges.

What does that mean for Michael Vick?

ED GARLAND, DEFENSE ATTORNEY: It adds to the extreme uncertainty in which he's operating. And his lawyers are trying to make decisions.

What are those people saying? What information does the prosecutor have? And what can Michael Vick's lawyers tell the NFL the facts are so that they can get a judgment as to where the NFL stands and where the prosecutor stands? And as far as the deadline, the prosecutor can always move that deadline around. But there's intense pressure. He has very fine lawyers and they're trying to balance all of these uncertainties.

COLLINS: Well, this is very, very carefully orchestrated by the prosecutors.

GARLAND: They are upping the pressure. They are threatening, apparently, to add as much as 20 years to the potential punishment. So Vick has to decide does he stand still where he is, does he wait and go forward? Does it get worse? It's a very difficult moment.

COLLINS: Well, and last time you were here with us, I asked you this same question. I have to ask you now. Should he be accepting this plea deal? If you were his attorney, where would you stand on that?

GARLAND: Probably you would be making a plea deal if the facts as represented that we know are true. But if he has a defense, that defense is his leverage to cut a better deal.

The question is, we don't know and his lawyers don't necessarily know what the prosecutor knows. The facts are unfolding rapidly. It's a difficult situation.

COLLINS: If he does not -- I mean there are so many ifs right now, because we just don't know. We should really point that out, obviously. We have not heard what his decision will be yet. And the grand jury meets on Monday. Time is certainly running out. He doesn't want to make a rash decision, I'm sure.

If he does not take this plea deal, goes to federal court, I mean we're talking about a 95 percent conviction rate there.

GARLAND: I don't think it's quite 95 percent. It varies. It's hard to say exactly. But it's a very high rate. It's 100 percent acquittal when you get an acquittal in one case. But...

COLLINS: Sure. Spoken like a true defense attorney.

GARLAND: Michael Vick has to decide is he going to lay out all of the facts and try to stop the erupting potential damage to himself? It is not easy to make that decision.

In this situation, I would want to know what are the true facts and how those true facts are going to play with the NFL. And, the big unanswered question is, what is the judge going do?

COLLINS: Well...

GARLAND: Because a deal made doesn't mean that the judge would approve it or sentence within the range that the lawyers and the prosecutor think is probable.

COLLINS: All right. So that's what you're talking about when we know that Judge Hudson is not bound -- that being a legal term -- by any plea agreement.

GARLAND: He is not bound. He is the wild card. He might give Vick more or less than either side thinks.

So Michael Vick is in an uncertain moment and I don't believe they're going to be able to bring certainty to it based on the terrain that I'm hearing about.

COLLINS: Is there any type of defense that could really bear the brunt of these co-defendants, though, coming forward and pleading guilty?

GARLAND: Yes. That defense could be, if the facts would support it, that Michael Vick was aware, but it was not his activities that were causing these events. He may have given money to his friends and now they have turned on him to get out of their own problems.

The problem is, nothing adds to the zest of the conversation like the absence of the facts. And on the outside, we just don't know them.

COLLINS: Very, very quickly, a lot of character witnesses would be called in a case like this, I imagine?

GARLAND: Character witnesses can add a little. But the facts that surround the events will really determine what a jury does. If it's a close question, if it's a question of are you going to believe Vick or are you going to believe these people who've got an ax to grind, then character witnesses can play a role.

COLLINS: Sure. Facts, facts, facts.

All right. Well, Ed Garland, you'll be watching it with us today. We'll be reporting, of course, whenever that decision is made by Michael Vick.

GARLAND: All right.

COLLINS: Thanks so much for being here.

GARLAND: Thank you.

COLLINS: We appreciate it.

Well, the Fed cuts a key rate and investors practically throw a party. The Dow surges 300 points in early trading, right now up 248. We're following those numbers for you.

Stick around.

(COMMERCIAL BREAK)

COLLINS: This just in now. Another strong aftershock rocks Peru this morning. This after Wednesday's deadly earthquake. More than 400 people dead. Other reports put that number above 500. Another 1,500 injured. Bodies lay out on some city streets with hospitals and morgues too overwhelmed to accommodate all the victims. Thousands of survivors also out on the streets, fearing more aftershocks or just having nowhere else to go.

Many of the victims, poor. Their mud brick homes caved in when the 8.0 magnitude quake hit late Wednesday. Aid now being rushed to the hardest hit southern region. The U.S. offering to send a Navy hospital ship equipped with hundreds of staff and a dozen operating rooms.

Setback at a Utah mine -- three rescuers killed. What about the six miners still trapped deep underground? Is it too dangerous to continue?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I think that's the big question now is, what will happen with the rescue operation?

(END VIDEO CLIP)

COLLINS: We may have an answer to that question coming up just a little bit later today.

(COMMERCIAL BREAK)

COLLINS: One former attorney is making a living with her passion of taking photos.

Ali Velshi has more on this week's Life After Work.

(BEGIN VIDEOTAPE)

VELSHI (voice-over): Rosanne Pennella is living a picture perfect life. She traded her stint as an attorney in 1996 for a career with a different focus.

ROSANNE PENNELLA, TRAVEL PHOTOGRAPHER: Practicing law was not something I really enjoyed. So when I started to really think about what I wanted to do, the driving force in my life was always travel.

I had always been interested in photography. At that time I thought about being a travel photographer. I photographed all over the world. I've been in all seven continents at this point.

The kind of images I like to capture tend to be ones that capture a sense of place and I'm really interested in capturing people.

VELSHI: Pennella's work has work appeared in a number of travel books and magazines, including Nikon's "Legends Behind the Lens." And sharing knowledge about how to take these pictures is something she finds equally rewarding.

PENNELLA: Teaching, for me, feels like something that's a very natural outgrowth of talking about a passion that I have. To do something you love allows you to step out and be really much more fundamentally who you are in the world.

And so, in that context, I think the way I am as a person in general has also changed because I'm much more happy in my life.

VELSHI: Ali Velshi, CNN.

(END VIDEO TAPE)

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