Return to Transcripts main page

CNN Newsroom

Senator's Sex Scandal; Firefighters Scrambling to Contain Idaho Wildfires; Michael Vick's Future

Aired August 28, 2007 - 09:00   ET

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

T.J. HOLMES, CNN ANCHOR: You are in the CNN NEWSROOM.
I'm T.J. Holmes, sitting in today for Tony Harris.

BRIANNA KEILAR, CNN ANCHOR: And I'm Brianna Keilar, in for Heidi Collins.

You can watch events come into the NEWSROOM live on Tuesday, August 28th.

Here is what's on the rundown.

Idaho Senator Larry Craig claims police got it all wrong. Their report details a men's room sex sting.

HOLMES: Also, a day shy of two years since Katrina. What has changed, what has not?

We will take you live to the Gulf Coast.

KEILAR: And antibacterial soaps come clean. Their germ-fighting powers may be a wash. We have got Dr. Sanjay Gupta live in the NEWSROOM.

HOLMES: A men's room sting. A Republican senator stung. Now his political future is in limbo. Staunch Idaho conservative Larry Craig arrested.

CNN Congressional Correspondent Jessica Yellin joins us now live from Washington.

And please explain to the folks what happened here. A strange story.

JESSICA YELLIN, CNN CONGRESSIONAL CORRESPONDENT: It is, indeed. And Larry Craig this morning is saying that he regrets pleading guilty to this charge. He did it without an attorney present.

He did pay more than $500 and had a 10-day sentence stayed. And according to "Roll Call" newspaper, it all stems from an incident at an airport bathroom in Minneapolis.

Now, according to the police report that "Roll Call" cites, an officer was investigating alleged sexual activity in the men's room. That report says that Senator Craig was in a stall next to the officer and he tapped his foot back and forth and ran his hand under the stall. The officer says this is a well-known sign in certain circles of a desire to engage in lewd conduct.

Now, through his office, Senator Craig has released a statement saying, "At the time of this incident, I complained to the police that they were misconstruing my actions. I was not involved in any inappropriate conduct." He also says, "In hindsight, I should not have pled guilty."

Now, since this story broke yesterday, Larry Craig has resigned from a position he held on the Mitt Romney for President campaign. And we also understand that it's possible the Senate Ethics Committee could look into this incident.

HOLMES: All right. And this isn't the first time, I guess, a run-in with the law. Another -- I guess his name came up in connection to another incident some years ago.

YELLIN: It's not run-ins with the law, but has previously denied any involvement in other inappropriate -- charges of inappropriate activities. And also denied rumors of a homosexual lifestyle that appeared on the Web. But he has rigorously denied those charges in the past and, again, this time is saying it was all a misunderstanding.

HOLMES: All right. We will see how this one plays out.

Jessica Yellin for us at the Capitol.

Thank you so much.

Also, going to take a look now at Larry Craig, a closer look.

Sixty-two years old, served three terms in the Senate. He faces re-election next year, but Craig has not said if he will seek that fourth term.

Conservative groups have praised his voting record. The American Family Association and the Family Research Council are among those giving him top marks.

Craig has voted against same-sex marriage. He also opposed hate crimes legislation that would extend special protections to gays and lesbians.

KEILAR: Attorney General Alberto Gonzales is on his way out. So now the question is, who will replace him?

Mum is the word from White House, but some candidates could face a tough Senate confirmation. Political insiders see a possible standoff between the White House and the Democratic-led Congress. .

"Newsweek's" Michael Isikoff has been looking into this, and he's going to join us at the half-hour.

HOLMES: Also new this morning, this word from a spokesman from South Korea's president, the Taliban has agreed to free 19 hostages held for more than a month in Afghanistan. A deal was reached in face-to-face talks between Taliban militants and South Korean negotiators. Twenty-three South Korean Christian missionaries were kidnapped in mid-July. Two were killed, two others freed.

South Korea has agreed to stop future missionary trips to Afghanistan. It is also withdrawing troops from the country. The troop pullout was previously planned.

A scramble under way this hour in Idaho. Crews there are trying to contain several big wildfires near popular tourist spots.

And CNN meteorologist Rob Marciano is with us now from Ketchum, Idaho.

Rob, any progress?

ROB MARCIANO, CNN METEOROLOGIST: There was some progress made yesterday, Brianna. They have got 44 percent containment. That is a step up from this past weekend, where the winds were blowing and blowing hard.

Yesterday, the winds slowed down just a little bit. So that helped them out.

Still, 42,000 -- over 42,000 acres have burned. They still have 38 miles of fire line they need to cut to surround this fire and get it completely contained.

They are getting support from the air, although fixed-wing aircraft have had a hard time getting up in the sky due to the winds. Helicopters, 12 of them, fire retardant and water have been dropped from them to try to help out these firefighters on the ground. Over 800 of them scraping, cutting, hosing down, trying to get this fire under control.

As you would imagine, battling a fire from the top of a mountain is definitely challenging. Yesterday, we went up to the top of the mountain and talked to one of the managers here and discussed exactly what he's up against.

(BEGIN VIDEO CLIP)

MICHAEL HUNEKE, FIREFIGHTER: The last couple of days we have had 40-mile-an-hour winds up here on the ridge top. And that just blows the embers and makes the fire push it so hard, it ran about three miles yesterday and bumped us hard up on the ridge top. And I think the weather just has been so difficult.

(END VIDEO CLIP)

MARCIANO: Weather has been difficult, but they have been getting a hand from an unlikely source -- snow machines, snow blowers, typically used to make snow during the wintertime at these ski resorts. Because Sun Valley almost surrounded by this fire now, they have been using those snow guns to blow water and to help out these firefighters on the ground. As a matter of fact, on Sunday, those snow guns helped beat back some of the flames that were whipping up within 100 feet of a multimillion-dollar lodge up near the top of the mountain. So, unprecedented work from snow guns battling back a fire here.

Well, the winds today likely to be on the lighter side, although a bad direction westerly, eventually. Right now it's pretty light and smoke has infiltrated this valley with drainage winds. And at times we have seen some ash as well.

But the sun now beginning to come up. There is a briefing going on. The crew leaders are getting their assignments for the dayshift.

They work 12, 16-hour days in some cases, around the clock. And now the dayshift is up and you can see them lining up behind me, lining up for the chow that they'll need to battle this fire all day long.

Critically important, Brianna, to get this fire under control over the next couple days, because it looks like there may very well be another big wind event this weekend. So, important to get containment before that happens. Otherwise, you know, this fire is within a mile of the highway and within two miles of the town of Ketchum itself.

So, they are hustling. No doubt about that -- Brianna.

KEILAR: A really serious situation there, but snow, that fake snow, that's just ingenious.

Thanks, Rob.

Rob Marciano for us there in Ketchum, Idaho.

HOLMES: All right. We turn to our Jacqui Jeras, another meteorologist of ours.

(WEATHER REPORT)

KEILAR: And new this morning, a fugitive suspected in several Texas killings in custody this hour in New York. Police arrested Paul Devot III (ph) after a short standoff. He's being arraigned today.

Devot (ph) is charged with murdering an ex-girlfriend at her home near Austin. Her daughter was also among the four victims found in that home over the weekend. Police say the murder of a bartender 20 miles away may have been Devot's (ph) first victim in the killing spree.

(BEGIN VIDEO CLIP)

ERIC GRIFFITH, BROTHER AND UNCLE OF VICTIM: They tracked him by her current boyfriend's cell phone. And that's how they figured out where he was.

And so they got him, you know, and that's the main thing right there. That's the bottom line, they got him. And I just want him to come back to Texas where he belongs and face Texas justice. Just move on with the sentence, and I'm hoping it's...

(END VIDEO CLIP)

KEILAR: Authorities say a car belonging to one of the Texas victims was found at a home in Greencastle, Pennsylvania. Police there discovered the body of an 81-year-old woman. That woman's car was then found in the driveway in Shirley, New York, where Devot (ph) was arrested.

HOLMES: Religious pilgrims are evacuating the Iraqi city of Karbala. That follows last night's deadly shootings during a holy festival. At least 26 people are dead, more than 30 others were wounded. Thousands of Shiite Muslims traveled to Karbala to mark the birthday of a revered imam.

KEILAR: Ah, the wonders of the heavens. This spectacular scene, a total lunar eclipse, visible in most of the Western Hemisphere in the morning darkness.

Along the East Coast, the Earth cast a shadow on the moon just before dawn. These pictures coming to us from Charlotte, North Carolina.

An eclipse happens when the Earth is directly between the sun and the moon, blocking light that's usually reflected off the moon.

HOLMES: Well, still ahead here in the CNN NEWSROOM, trading the view for security. People have moved back in Bay St. Louis.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: It will just never be the same.

KATHLEEN KOCH, CNN CORRESPONDENT: Can't risk it all again?

UNIDENTIFIED FEMALE: Can't risk it all again.

(END VIDEO CLIP)

HOLMES: Two years after Katrina, our Kathleen Koch checks on her Gulf Coast hometown.

KEILAR: And antibacterial soaps and gels, moms are armed with them, especially during cold and flu time. But do they really even work?

Germ busters coming clean.

Stay with us.

HOLMES: Also, is it entertainment or endangerment?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I've just wanted to go home for a long time now.

(END VIDEO CLIP)

HOLMES: Man, a new reality TV show starring kids may be in trouble with the law.

KEILAR: And is it the home of the cheese steak or home of the cheese head? Not even close. We have got the state with the unwanted distinction, the nation's fattest.

That's ahead in the CNN NEWSROOM.

(COMMERCIAL BREAK)

HOLMES: From star quarterback to convicted felon, Michael Vick has taken a fall. So, what's now in his future?

CNN's Jeffrey Toobin reports.

(BEGIN VIDEOTAPE)

JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST (voice-over): A raucous greeting on a day of judgment.

In court for just 15 minutes, Michael Vick speaks few words, answering the judge with only yes, sir, no, sir, and his plea to the charge of conspiracy, guilty. A few minutes later at a nearby hotel, the quarterback offers his first apology.

MICHAEL VICK, SUSPENDED NFL QUARTERBACK: I take full responsibility for my actions. Not for one second will I sit right here -- not for one second will I sit right here and point the finger, try to blame anybody else for my actions and what I have done. I'm totally responsible, and those things just didn't have to happen.

TOOBIN: And he promises a new approach to life.

VICK: Dog fighting is a terrible thing, and I didn't reject it. I'm upset at myself. And you know, through this situation I found Jesus, and I asked him for forgiveness, and have turned my life over to God.

TOOBIN: Next, sentencing on December 10. Federal guidelines suggest a range of 12 to 18 months, but the judge could go higher, up to five years in prison.

Vick's case introduced many Americans to dog fighting, but the so-called sport is already widespread and growing. The Humane Society estimates as many as 40,000 people participate every year in this underground world. The federal government is cracking down.

Just this May, President Bush signed a law making it a federal felony. Forty-eight states, all except Idaho and Wyoming, already make dog fighting a felony.

As for Vick, his fate will linger in the courts for several more months. But, whatever his prison sentence, the Atlanta Falcon, at age 27, may have ended a brilliant career.

Today, the owner of the Falcons, Arthur Blank, rendered a judgment that many Americans may share.

ARTHUR BLANK, OWNER, ATLANTA FALCONS: He has let down his fans and his team. He's damaged the reputation of our club and the entire National Football League and betrayed the trust of many people.

TOOBIN: Jeffrey Toobin, CNN, Richmond, Virginia.

(END VIDEOTAPE)

KEILAR: Flu season is just around the corner. And you know the best way to fight germs. Doctors are always telling to you wash your hands, including, of course, our chief medical correspondent, Dr. Sanjay Gupta.

So, do these really help, these antibacterial soaps?

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Yes. You know, it's funny. We give this advice all the time, but now we have to sort of actually mean (ph) what we say in terms of the antibacterial soaps.

A lot of people pay a lot of money for those soaps that are called antibacterial specifically, and for good reason. I mean, there's a lot of promises made about these products, as you know, Brianna. They say that they'll kill 10 times as many bacteria, for example.

The question is, are they any more effective than just regular soap? That was exactly the subject of a study, 27 different studies, actually, from the University of Michigan, looking, comparing these head to head.

What they were specifically looking at is this ingredient triclosan. That's the ingredient that's found in a lot of these antibacterial soaps. They wanted to find out, did it make a difference? And the short answer is no. It didn't seem to make any difference at all.

They measured two things specifically -- how many bacteria were still lingering around on your hands after you washed? And two, did it reduce your rate of infectious disease at all? And the answer to both those questions appeared to be no.

Now, triclosan, to be clear, is this sort of germ-fighting thing. But it appears to be in low enough concentrations where it doesn't make a difference as compared to regular soap.

KEILAR: But what about regular soap? Can you kill E. coli and salmonella just with your standard soap?

GUPTA: You know, you really can't. In fact, some of these bacteria can actually live in a soap dish, which was sort of amazing to me. The soap dish itself can have some of these bacteria in it. What's working here is actually cleaning your hands, washing your hands properly, and loosening these germs, viruses off your hands, and then letting them literally float down to the bottom of your sink. That's what seems to make a difference, whether it is the antibacterial soap or regular soap.

KEILAR: OK. So don't just wipe your hands on your pants. It's not going to fly.

GUPTA: That's not going to work.

KEILAR: It's not enough. But what about -- are we getting any benefits from the antibacterial soap?

GUPTA: You know, you're getting the same benefits as you would with regular soap. The message here, I think, for most people is that you have got to wash your hands adequately, more than just a quick rinse underneath the water. Use the soap, wash for at least a couple of minutes.

And let me show you something else as well. In a hospital, we actually use something like this. This is the package it comes in.

This is a scrub brush, we call it. And it's got chlorhexidiene in it, along with triclosan. These are two chemicals that actually clean your hands. And you've really got to scrub your hands for about six minutes before going into the operating room to make sure these hands are clean enough to actually put some gloves on and do some operating.

KEILAR: And what type of soap is it that you use in the operating room?

GUPTA: Well, we use -- and it's got standard soap in here. And then it's got these chemicals which not only loosen the germs and viruses off your hand, but actually kill some of them as well.

Chlorhexidiene is what's in this one, but they are all alcohol- based. It's like a rubbing alcohol sort of base. It really dries your hands, which is why you don't want to use it sort of more widely. But it works pretty well for the O.R.

KEILAR: OK. So this isn't something for standard hand washers like me?

GUPTA: You can have it.

KEILAR: Oh, thanks, Sanjay. I appreciate it.

GUPTA: There you go.

KEILAR: All right. Thanks very much.

GUPTA: Carry that around.

KEILAR: Dr. Gupta, I appreciate it. I will carry it around. GUPTA: All right, Brianna.

HOLMES: All right, guy. You will have clean hands when I get back out there.

Coming up here, folks, slogging through a war where victory seems out of reach. This battleground, Colombia's cocaine country.

We'll follow this fight.

ALI VELSHI, CNN CORRESPONDENT: And T.J., gas up that minivan. I don't know if you had plans this weekend, but gas prices are lower for Labor Day.

I will tell you about that when we come back in the NEWSROOM.

(COMMERCIAL BREAK)

KEILAR: Anger and frustration as the flames spread. Greece's government accused of not doing enough to stop dozens of forest fires from destroying homes, farms and businesses.

Right now, the battle is raging on. Firefighters from other European countries and also from Israel are flying to the frontlines, and the weather has changed for the better. Fires across much of southern Greece have burned for almost a week. Most of them blamed on arsonists. More than 60 deaths are now confirmed.

HOLMES: Well, gas prices fall to a five-month low. After a summer of $3-plus gas prices, American drivers get some relief in time for the Labor Day weekend.

Ali Velshi here "Minding Your Business".

And Ali, I wasn't clear. Earlier you said I need to gas up my mini. I didn't know if you were referring to a Mini Cooper or a minivan.

VELSHI: No, I said minivan. I get it wrong all the time.

HOLMES: OK.

VELSHI: I know you don't have a minivan. But it's stuck in my head.

HOLMES: OK. Get it out of your head, please.

VELSHI: All right. But you can gas up the mini.

If you are getting away for the weekend, here's the thing, about 35 million Americans are going to go away this weekend, more than 50 miles from home. It is unclear how many of them will drive and how many of them will take a plane or do whatever the case is, but this is a busy travel weekend. And you are looking at the lowest gas prices since April. Gas in the last week has dropped another 3.6 cents. Take a look at the prices, national average prices, which are only marginally useful because you can't really go to another state to fill gas, generally.

The U.S. average for a gallon of self-serve unleaded is $2.77. Houston is one of the lowest-priced cities around, $2.60. San Francisco, $3.05. At the high end, Chicago, also above $3 on the high end.

So, we are looking at gas prices, T.J., that were much lower than they were a year ago. And this is kind of where it gets dodgy, because when gas was above $3 a gallon on average, people really make different decisions about not just whether they are driving for Labor Day, but about what car they are getting next.

As we pull back, Americans are very quick to forget high gas prices and get back into their old driving habits. So, kind of dodgy as to where gas prices are going in the next little while. But for the weekend, you've got a bit of a sale.

HOLMES: So you think people will really see this, see gas prices are down, and they will make a decision like buying a big SUV over the next month or so, not realizing that gas prices are going to shoot back up?

VELSHI: There is nothing clearer to the American consumer than when they fill up at the pump. It is done regularly. Everybody knows the price of it because you see it posted everywhere.

Most people couldn't tell you the price of milk, but they can -- except new parents, but they can tell thank you price of gas. And when you fill up and the dollar amount changes -- you were in the $40s, and now you are in the $50s, or you're in the $50s and you're in the $60s, yes, that's the kind of thing people sit around after they fill up gas and say, you know what? I think the next car should be maybe something smaller, or, you know, maybe I want to get that Escalade after all.

So, yes, people do really decide on the basis of gas prices. So, if you are buying cars this week, well, go get the biggest thing you can find.

HOLMES: All right. And what do you drive, Ali?

VELSHI: I have a motorcycle.

HOLMES: And that's it?

VELSHI: No. I also have an SUV.

HOLMES: I'm with you, man. I got an SUV as well. So...

VELSHI: We'll ride some time.

HOLMES: Yes, sure. By all means. Ali, looking forward to the drive, all right?

VELSHI: See you, T.J.

HOLMES: Me and Ali hitting some corners.

All right. Thanks, Ali.

Well, stay tuned here, folks. We have got a strange story coming out of Washington here. Another sex scandal to talk about Washington folks are waking up to. Find out what this senator has to say for himself.

KEILAR: And replacing Gonzales. Who will the president pick? And will the Democratic-controlled Congress go along with it?

We have got insight from "Newsweek's" Michael Isikoff coming up.

KOCH: On the eve of Katrina's two-year anniversary, how far along the road to recovery is my coastal Mississippi hometown?

I'm Kathleen Koch. We'll have more on that coming up in the NEWSROOM.

(COMMERCIAL BREAK)

HOLMES: Hello again, everybody. Welcome back.

I'm T.J. Holmes, sitting in today for Tony Harris.

KEILAR: And I'm Brianna Keilar, in for Heidi Collins.

A bathroom sex scandal. A conservative senator facing tough questions today.

Idaho Republican Larry Craig arrested in a sting at the Minneapolis airport. An undercover policeman says Craig entered an adjoining stall and repeatedly used gestures to signal his interest in having sex. Craig says he did nothing inappropriate and that the police officer simply misunderstood him.

The three-term senator later pleaded guilty to misdemeanor charges but now says the plea was a mistake. That drew scoffs from the newspaper reporter who broke the story.

(BEGIN VIDEO CLIP)

(BEGIN VIDEO CLIP FROM CNN's "AMERICAN MORNING")

JOHN MCARDLE, "ROLL CALL" REPORTER: This incident occurs on June 8th. And he has almost -- I'm sorry, June 11th. And he has almost two months, until August 8th, to think about the incident when he actually went and pled guilty.

He says he should have had a lawyer with him. But if you go back to the police report, he went back to the airport -- the Minnesota airport where this all happened, 11 days after the incident occurred, on the 22nd. And there's a specific report from the police officers that say he came back looking for a contact information to "give a contact to his lawyer."

(END VIDEO CLIP)

KEILAR: The 62-year-old Craig has won conservative praise for his voting record. Among his stands -- opposing same sex marriage and also voting against hate crime laws that would focus on gay and lesbian victims.

And lots of speculation this morning with Attorney General Gonzales his way out.

The question now who is going to replace him?

President Bush is mum, but plenty of names are being tossed around, including Homeland Security Secretary Michael Chertoff's.

Also, former Solicitor General Ted Olson and Larry Thompson, the second ranking official at the Justice Department during the president's first term.

For now, we know Solicitor General Paul Clement will serve as acting attorney general when Gonzales leaves. That's going to be on September 17th.

But whoever President Bush picks to become the next attorney general, he or she will likely face particularly close scrutiny on Capitol Hill.

Now, here to talk about that, Michael Isikoff of "Newsweek" magazine.

Michael, you've written about this. And there are a lot of names that are being thrown around. Michael Chertoff, of course, a name that is familiar to people outside of Washington. The other ones not so much.

So let's just kind of go through these, get familiar with these men who are being -- whose names are being mentioned.

Let's start with Michael Chertoff, current Homeland Security secretary.

What can you tell us?

MICHAEL ISIKOFF, "NEWSWEEK" MAGAZINE: Well, he was the name that was most prominently mentioned first. And he would seem to be a natural for the job. He had served in the Justice Department, first as a U.S. attorney in Newark under two administrations and then as the chief of the criminal division during the first years of the Bush -- of this Bush administration; now, of course, Homeland Security chief.

He knows the law, knows criminal prosecutions as well as anybody. But he does have political baggage. He, of course, most prominent had served his Homeland Security chief during Katrina and was criticized for a slow reaction to that impending disaster.

Any confirmation hearings would inevitably bring up his role in Katrina, as well as some of the more controversial things he did at the Justice Department, including at least participating in discussions about aggressive interrogation techniques that were at issue during the -- had been at issue during the Gonzales fuss.

Now -- so I think, at this point, Chertoff is probably not the ideal choice if the administration is looking for an easy, quick confirmation.

KEILAR: So let's look at some of the other names, the names that people might not be as familiar with.

Paul Clement. He's going to be the acting attorney general post- September 17th, when Gonzales steps away. But he, at current, is the solicitor general.

What else can you tell us about him?

ISIKOFF: Well, he is a former Capitol Hill aide. In fact, he had served as John Ashcroft's chief council when he was on the Judiciary Committee and is -- has served as solicitor general, argued some of the highly -- most contentious Supreme Court cases before the Supreme Court under this administration. A widely liked, soft-spoken, thoughtful guy, but probably viewed as a little too young and inexperienced to serve permanently as attorney general.

But one thing I think Democrats are going to be wary of is allowing him to stay in that job too long, because that would seem to be a sort of interim appointment in which he doesn't get Senate confirmation. And I don't think Senate Democrats are going to stand for that. So that probably will force a demand that the White House nominate a -- formally nominate a successor.

KEILAR: And let's hit the next three a little quicker.

I apologize, Michael.

I'm kind of getting the wrap up.

So let's talk about Larry Thompson. He was a former deputy general in the president's first term.

ISIKOFF: Widely liked, very popular within the department, would probably be, ideally, the kind of non-divisive choice that the White House could make.

KEILAR: And Ted Olson, former solicitor general, one of the top positions at the Department of Justice.

ISIKOFF: Widely respected, knows the law as well as anybody, but not -- but could be contentious. He's viewed as more a hard-line conservative. That would raise the eyebrows of some Senate Democrats.

KEILAR: And we also heard the name of George Terwilliger floated, former deputy attorney general. That was under the president's father, George H.W. Bush.

ISIKOFF: Widely respected guy, had been a runner-up for the job of FBI director. Very plugged in, another non-contentious choice.

KEILAR: All right, Michael Isikoff from "Newsweek" magazine, breaking it all down for us.

Thanks so much.

We appreciate it.

ISIKOFF: Any time.

HOLMES: Some serious new concerns right now in waterlogged Southwestern Wisconsin. People living near four earthen dams have gotten evacuation orders. Those dams held during last week's downpours, but authorities have spotted erosion at one of them. Rain fell across the region yesterday. Forecasters say more wet weather could be on the way.

KEILAR: And let's head over to Jacqui Jeras.

She is in the CNN Weather Center.

What's up -- Jacqui.

JACQUI JERAS, ATS METEOROLOGIST: Hey, guys.

(WEATHER REPORT)

HOLMES: Well, two years after Katrina, Bay St. Louis still struggling to get back on its feet.

And CNN's Kathleen Koch is live in her Mississippi hometown -- Kathleen, what kind of progress are you seeing there?

KATHLEEN KOCH, CNN CORRESPONDENT: Well, T.J., I'll show you some progress right here. Just to my right, the town's historic first bank on the waterfront has just reopened, roughly two years since Katrina hit. And so that is giving people hope.

But it's has been a tough couple of years. You know, our town is not below sea level. There are no levees here. We were hit by 143 mile an hour sustained winds, a 30 plus foot storm surge. And so, as you can see behind me, there are businesses, there are homes that still look like they did after Katrina. And it's really heartbreaking for those like me, who knew what this town used to be.

(BEGIN VIDEO TAPE)

KOCH (voice-over): Before Hurricane Katrina, the Bay St. Louis waterfront was prime real estate lined with gracious homes and thriving businesses.

Two years later, the one business that finally just reopened on the waterfront couldn't afford full insurance.

JOHN BAXTER, HANCOCK BANK: You have to take some chances sometimes to start the rebuilding process.

KOCH: Battles with insurance companies have left many homeowners without the money to rebuild. Those who have scraped the cash are building small houses high on pylons and crossing their fingers.

Some, like my high school classmate, Diane Bourgeois, can't bear the risk. Her gutted home had to be bulldozed.

(on camera): But you personally won't ever rebuild here?

DIANE BOURGEOIS, HOMEOWNER: I don't think I can. No.

KOCH: Why not?

BOURGEOIS: Well, just -- just the, I don't know, the memories. But it will just never be the same. It's...

KOCH: You can't risk it all again?

BOURGEOIS: Can't risk it all again.

KOCH (voice-over): She's traded in her idyllic life near the water for an apartment over a barn 15 miles inland. Businesses are moving inland, too. The popular waterfront restaurant, Trapanis, reduced to rubble by Katrina, is in temporary quarters two miles away until a new road and sea wall can be built.

TONY TRAPANI, RESTAURANT OWNER: You know, we miss being on the water. We miss the activities of everybody having like a beachfront type atmosphere where we walk out and look at the water.

KOCH: Business inland is improving since two lanes of the destroyed bridge connecting the town to the rest of the Gulf Coast have reopened. And tax revenues are beginning to get close to pre- Katrina levels.

But a third of residents haven't returned. There's little rental property and no public housing has been rebuilt or repaired. Even the mayor still lives in a trailer.

MAYOR EDDIE FAVRE, BAY ST. LOUIS, MISSISSIPPI: Without the people, we don't have a town. We don't have a city, we don't have a place apart.

(END VIDEO TAPE)

KOCH: And a place apart is the town motto. The determined residents here are still pulling together, still struggling to rebuild. But they are tired. They are tired, body and soul, as this two year anniversary approaches. And the mayor himself is predicting, T.J., that it could be seven years after Katrina before it really is back to normal here.

HOLMES: You know, Kathleen, but do the people have it in them?

You just talked about people being tired and they want to be strong and they want to be resolute and they'd love to see it work.

But how do they just find it in them to just keep going?

KOCH: Well, part of what helps is that we're all in this together. You know, people here, so many of them, disaster is a great equalizer. Everyone lost everything.

What they are seeing, they're seeing, though, higher cases of Post-Traumatic Stress Disorder, increased thoughts of suicide. And what really hurts, too, is the feeling, the really intense feeling that they've been forgotten, that the rest of country believes everything is better here.

And you just don't erase so much of a town and then suddenly have it spring back to normal in two years. So they still need volunteers, they still need insurance reform so that people can, you know, buy a wind and a water policy from one entity that will cover them for all disasters so that they don't have the case that they had here, you know, this back and forth where the private companies said oh, there was no wind. It was all water damage. Make the federal government, who you bought your flood insurance, pay for it. And so many private insurers just really abdicated on their responsibility and the rates are through the roof for the few people Insurance for businesses four times what it was before the storm. Residents paying more in their insurance payments to insure their homes than they are in their mortgages. So, it's tough.

HOLMES: All right, Kathleen Koch for us there in your hometown. You never thought you would probably be reporting on something like this in your hometown.

KOCH: No.

HOLMES: But, Kathleen, thank you for taking us all there.

KOCH: Have a good day.

HOLMES: Thank you so much.

KOCH: You bet.

HOLMES: Well, still ahead here, crime is up, graduation rates are down -- New Orleans students and the new facts of life after Hurricane Katrina.

(STOCK MARKET REPORT)

(COMMERCIAL BREAK)

KEILAR: Safety inspections have been ordered for all newer Boeing 737 aircraft. The FAA directive follows last week's fire on a plane that had just landed in Japan. Investigators believe that a bolt from the right wing slat pierced a fuel tank.

Now, luckily, all on board managed to escape before the plane was engulfed in flames. Wing slats on Boeing 737s in service in the U.S. since 1998 will be checked. FAA officials say inspections will then likely expand to include nearly all Boeing 737s worldwide.

HOLMES: Colombia's war on cocaine a tough fight for troops taking on rival gangs. Yet the key to victory may be beyond the borders.

CNN's Karl Penhaul reports.

(BEGIN VIDEO TAPE)

KARL PENHAUL, CNN CORRESPONDENT (voice-over): A young man heads to his grave, slain by suspected drug cartel hit men. Here, too, lies the town of El Davio's (ph) most notorious son, Ivan Erdinolla (ph), vicious cocaine king and erstwhile ally of Pablo Escobar.

His epithet reads: "Pardon the mistakes I have made."

For years, he bought loyalty by splashing out drug money on food and homes for poor townsfolk. They honored him with this bronze statue; though these days, it's tucked out of public view.

"We knew what he was, but he was very kind with the people. We more or less knew how he earned all that money, but he invested it in good things," he says.

Times have changed. Now two rival capos are carving up Erdinolla's (ph) territory. One of them, Diego Montoya, is deemed so dangerous hat the FBI posted him on its Most Wanted List alongside Osama bin Laden.

His gang is battling against another cocaine baron, Wilbur Vadella (ph).

The U.S. government is offering a $5 million reward. But there are no takers. Many civilians have fled the cartel infighting. Those who remain are too terrified to speak out.

"Being neutral means we cannot ally ourselves with anybody -- not with the drug gangs, the guerrillas or even with the law," this man says.

Police estimate each mob has at least 200 hired gunmen. As I travel through villages and into deep canyons, scores were visible, some armed with pistols and hand grenades, keeping watch from hilltops and ruined farmhouses. None agreed to talk on camera.

"These capos have private armies and have extensive information networks that helps them evade police operations," he says.

These are members of an elite police anti-drug squad, trained and equipped by Washington since 2000 as part of Plan Colombia -- a $5.5 billion package to fight the drug war. They ride into cocaine country to the sounds of the Rolling Stones. Today's mission?

Hunt for the hideout of Kingpin Montoya. But even if they do find him, Colombia's recent history has proved other traffickers will quickly fill the vacuum. Despite U.S. aid, Colombia still produces around two thirds of the world's cocaine, more than 600 tons a year.

"We can kill many Pablo Escobars and we can capture the heads of the Cali cartel, too. But if other countries, especially the consumer countries, do not help us fight consumption, then this war will be very difficult to win," he says.

Police hit the ground and load their rifles after one patrolman spots a cartel lookout. No shots are fired. In a nearby hamlet, police get few answers. The cartels strictly enforce their law of silence.

(on camera): It's been a tough and potentially dangerous drive to get here, but these police have come up with nothing -- no gang members, no cocaine, no cartel capos and no useful intelligence information.

(voice-over): The drug war here is a slow, bloody affair with no clear end or victory in sight.

Karl Penhaul, CNN, Norte del Valle, Colombia.

(END VIDEO TAPE)

KEILAR: Entertainment or endangerment?

(BEGIN VIDEO CLIP)

D.K.: I just have wanted to go home for a long time now.

(END VIDEO CLIP)

KEILAR: It's a new reality TV show starring kids and it may be in trouble with the law.

(COMMERCIAL BREAK)

HOLMES: All right. You already know to catch Tony and Heidi usually weekday mornings, from 9:00 until 12:00 Eastern.

But you can also catch them and take them anywhere with you on your iPod.

Tony Harris anywhere with you -- kind of a scary thought, I know.

KEILAR: That is scary.

HOLMES: But you want to check out the CNN NEWSROOM pod cast. That's available 24-7 right on your iPod.

KEILAR: Is it summer camp or labor camp?

A reality show puts kids on TV, but does it also put them in danger?

CNN's Brooke Anderson reports.

(BEGIN VIDEO TAPE)

D.K.: I have just been wanting to go home for a long time now and...

BROOKE ANDERSON, CNN ENTERTAINMENT CORRESPONDENT: Fourteen-year- old D.K. (ph) is one of 40 children ages eight to 15 who were placed in the New Mexico desert for 40 days this past spring for the upcoming CBS reality series, "Kid Nation".

UNIDENTIFIED FEMALE: It's hard to keep (INAUDIBLE).

JONATHAN KARSH, HOST, "KID NATION": These kids make their own meals on wood burning stoves. They do their own laundry. They have their own economy. They run their own stores.

ANDERSON: While CBS, on its Web site, says the participants will cope with regular childhood emotions and situations, including home sickness, the show is embroiled in an adult-sized controversy regarding the kids' living and working conditions.

The attorney general of New Mexico is investigating whether child labor laws were violated and whether the children were put in potentially harmful situations.

PHIL SISNEROS, NEW MEXICO ATTORNEY GENERAL'S OFFICE: We can find out from the records whether or not there were -- there is evidence of -- the allegations, I believe, were some of the children were put in danger.

ANDERSON: Sante Fe's sheriff, Greg Salano, reads from two angry letters, which prompted his investigation into the allegations. One, from a participant's mother, who says her daughter was burned by hot cooking grease. And the other, unsigned, included these claims...

SHERIFF GREG SOLANO, SANTE FE COUNTY, NEW MEXICO: Four children drank bleach, a girl was burned in her face with grease, a girl vomited repeatedly, a teenager urinated in the canteen of a younger boy and condoms were placed over microphones given to minors, reportedly to protect microphones from the rain.

ANDERSON: "Kid Nation's" producers have described show as a social experiment.

TOM FORMAN, EXECUTIVE PRODUCER, "KID NATION": We literally just tried to take a giant step back and shoot and see what happened next.

UNIDENTIFIED MALE: What I'm really missing is my brother.

ANDERSON: While we aren't hearing from outraged parents, they signed a confidentiality clause that carries a penalty of up to $5 million. CBS says the series was filmed within all applicable laws. Furthermore, parents signed a 22-page waiver acknowledging the risks involved, including injury or even death.

(BEGIN VIDEO CLIP FROM "KID NATION," COURTESY CBS

UNIDENTIFIED MALE: Stop threatening us, Taylor.

ANDERSON: CBS defends the conditions, telling CNN: "What was extraordinary about "Kid Nation" was the behind the scenes support structure, which included on-site paramedics, a pediatrician, an animal safety expert and a child psychologist. These kids were in good hands and under good care, with proceeds and safety structures that arguably rival or surpass any school or camp in the country.

K.D.: This is the like the last straw for me.

ANDERSON: Summer camp or child labor nightmare?

"Kid Nation" is scheduled to premiere mid-September.

UNIDENTIFIED MALE: And people will be like whoa when they see this.

ANDERSON: Brooke Anderson, CNN, Hollywood.

(END VIDEO TAPE)

KEILAR: A police sex sting in a men's restroom -- a conservative Senator now on the hot seat.

Can Larry Craig survive the scandal?

HOLMES: Also, a lack of unity in Iraq -- the struggle for political power punctuated by gunfire.

KEILAR: And is it the home of the cheese steak?

Maybe the home of the cheese head?

Not even close. The state with the unwanted distinction, the nation's fattest. That's ahead.

(COMMERCIAL BREAK)

HOLMES: They're swallowing the moon -- an event that once caused fear in ancient times thrills early risers in the U.S.

KEILAR: Deep-fried means trouble in the Deep South. According to a new study, Mississippi is the first state ever where more than 30 percent of adults are obese. Experts blame the long Southern tradition of fried foods. Alabama and West Virginia were just behind, and in all, 31 states showed an increase in obesity rates last year. Colorado continued to rank as the nation's leanest state.

HOLMES: Huh.

KEILAR: And good morning.

I'm Brianna Keilar.

HOLMES: And I'm T.J. Holmes.

Tony and Heidi are on assignment right now, but you're going to stay informed all day right here in the CNN NEWSROOM.

Here is what is on our rundown.

A men's room sex sting nets a U.S. senator. But Republican Larry Craig says this is all just a big misunderstanding.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.voxant.com