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President Bush Focusing on Iraq War, Mortgage Crisis Today; Senator Larry Craig Likely to Resign
Aired August 31, 2007 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
TONY HARRIS, CNN ANCHOR: And good morning again, everyone. You're with CNN. You're informed.
I'm Tony Harris.
HEIDI COLLINS, CNN ANCHOR: Hi there, everybody. I'm Heidi Collins.
Developments keep coming into the CNN NEWSROOM on this Friday. It's supposed to be a quieter day, the 31st of August.
Here's what's on the rundown now.
President Bush live this hour in the Rose Garden. Help for homeowners wilting under subprime mortgages.
HARRIS: Resignation possible over a men's room sex sting. Sources telling CNN Senator Larry Craig could quit his job, perhaps today.
COLLINS: It started out a fairy tale. It ended in tragedy.
Remembering Diana a decade after her death, in the NEWSROOM.
HARRIS: And at the top this hour, the war in Iraq and the mortgage crisis here at home. Both topics commanding President Bush's attention today. Minutes from now, his plan to help struggling homeowners.
See him live right here in the NEWSROOM.
But today's main focus, a critical briefing on Iraq.
CNN White House Correspondent Ed Henry, there he is to set the stage for us.
Ed, good morning to you.
ED HENRY, CNN WHITE HOUSE CORRESPONDENT: Good morning, Tony.
HARRIS: Hey, what will we be hearing from the president this morning?
HENRY: Well, spokesman Tony Snow says this is a chance for the president to get an update on the overall health of the military. Obviously, as you know, the military has been stretched by the wars in Iraq and Afghanistan. The president wants to hear about the long rotations, he wants to also talk about privately his plan to increase forces overall. But this is also obviously crunch time on Iraq.
Just two weeks away from General David Petraeus' progress report, so troop levels there in Iraq will also likely come up with the Joint Chiefs. And all indications are that maybe not all of the joint chiefs, not all of the generals are on the same page. Some indication, for example, that outgoing general Peter Pace may want to see troop levels start coming down sooner than others in Iraq.
All of this, and particularly this meeting, meant to show and give the impression to the public the president is hearing all sides, listening to his generals. But, in fact, when you listen closely to what the president is actually saying publicly, he really sounds like a person who has made up his mind that he wants to stick with the current strategy.
He believes the surge is working. He wants more time for it to work even more and hopefully bring political reconciliation, in his mind -- Tony.
HARRIS: OK. And Ed, the other topic on the agenda today, the president's plan to help those folks struggling -- those homeowners who are having some problems right now. What do we expect to hear from the president, oh, in about eight to 10 minutes or so?
HENRY: The key is the president is not going to call for a federal bailout. Instead, he wants to take some more incremental steps such as FHA reform -- that's the Federal Housing Authority, of course. He wants to increase their ability to insure loans for people who can't make their payments and could get a lifeline from refinancing.
He also wants to reform the tax code. There's some talk about suspending, at least for a short time, the rule that basically hits consumers with a tax if mortgage companies forgive them some mortgage debt.
He also wants to examine so-called predatory lending. As you know, that's also -- there have been a lot of abuses. There's concern about that.
But will this really have an impact?
HARRIS: Yes.
HENRY: That's the bottom-line question. And a reporter just a few moments ago, asked Tony Snow, said, "Hey, this is an easy one. How much do you think this will help the housing market?" Tony Snow wouldn't predict that.
I think the White House is obviously careful not to say this is going to do too much. So I said, "Do you think that the president's plan will hurt the housing market?" Tony Snow laughed and said no, but I think the point was made there that they're very careful not to say this will have that much impact -- Tony. HARRIS: And the other bottom line here is that the president wants to at least send the signal, doesn't he, Ed, that he is in tune, that he is dialed in?
HENRY: You're right. That's what this is all about.
Tony Snow getting a lot of questions from reporters about why, if this is so important, why didn't the president move faster?
HARRIS: Yes.
HENRY: As you know, we have heard for months about the fact that there's been a credit crunch.
HARRIS: Sure.
HENRY: There's been a mortgage problem now. Tony Snow points out that last year, the president did push for this federal housing reform. It passed in the House by a wide margin but got stalled in the Senate. So, he's sort of blaming Congress.
But if you remember last year, the Senate was run by Republicans, not Democrats. So it's hard for the White House to point the finger too hard at Congress.
The Democratic Congress now -- and they're going to press them to get moving now. But last year when the White House wanted action, it was a Republican Senate that held it up -- Tony.
HARRIS: Hey, do you think -- I think we're inside the two-minute window here. Great, great, great.
Do you expect the president after the statement to take some questions, or will he leave that to the others who are with him this morning?
HENRY: The anticipation is that the president himself will not take questions. Of course, the commander in chief can always change that...
HARRIS: Sure.
HENRY: The expectation is that Treasury Secretary Henry Paulson, as well as the Housing secretary, Alphonso Jackson, will stick around after the president's remarks, take some questions about the specifics of this plan.
You k now, another big thing going on today is this is Karl Rove's final day.
HARRIS: Oh, yes, yes, yes.
HENRY: It will be interesting to see if he's there in the Rose Garden with the president. He's expected to leave in the next couple of hours. And we're told this morning at the final senior staff meeting it got very emotional. They played a little slideshow, various still photos of Karl Rove by the president's side over the last six, seven years. And we're told that Karl Rove didn't really give any final speech because he actually grew very emotional and was sort of choked up by all the tributes. But we're told that Rove did leave handwritten notes for all the other senior staffers on the conference table there in this private meeting, notes to them about how much he values their friendship.
HARRIS: Wow.
HENRY: So, obviously, the end of an era here -- Tony.
HARRIS: Hey, did you get to the bottom of -- I don't know if we have the pictures of who shrink-wrapped a car earlier in the week?
HENRY: You know, Tony, I've been doing a lot of digging on this.
HARRIS: Yes.
HENRY: And I finally figured out it's Al Hubbard, the president's chief economic adviser. He's normally a very straight- laced economist. But what I'm told is that Karl Rove has played a lot of practical jokes on Al Hubbord in recent years because Hubbard leaves his car keys in his car out here by the White House.
HARRIS: Yes.
HENRY: So Karl Rove used to go in, take the ignition key, and move the car. So this was a little payback. Al Hubbard pulling this prank with all the Saran Wrap -- Tony.
HARRIS: Ed, let's get you to the president right now.
GEORGE W. BUSH, PRES. OF THE UNITED STATES: Secretary Paulson and Secretary Jackson gave me an update on the strong fundamentals of our nation's economy. Economic growth is healthy, and just yesterday we learned that our economy grew at a strong rate of 4 percent in the second quarter of this year. Wages are rising, unemployment is low, exports are up and steady job creation continues.
We also had a good discussion about the situation in America's financial markets.
The markets are in a period of transition as participants reassess and re-price risks. This process has been unfolding for some time and it's going to take more time to fully play out. As it does, America's overall economy will remain strong enough to weather any turbulence.
One area that has shown particular strain is the mortgage market, especially what's known as the subprime sector of the mortgage market.
This market has seen tremendous innovation in recent years as new lending products make credit available to more people. For the most part, this has been a positive development. And the reason why, is millions of families have taken out mortgages to buy their homes and American homeownership is at a near all-time high.
Unfortunately, there has also been some excesses in the lending industry.
One of the most troubling developments has been the increase in adjustable rate mortgages that start out with a very low interest rate and then reset to a higher rate after a few years.
This has led some homeowners to take out loans larger than they could afford based on overly optimistic assumptions about the future performance of the housing market. Others may have been confused by the terms of their loan, or misled by irresponsible lenders.
Whatever the reason they chose this kind of mortgage, some borrowers are now unable to make their monthly payments, or facing foreclosure.
Complicating the situation for borrowers is the nature of today's mortgage market. In many cases, the neighborhood banker who issued a family's mortgage does not own that mortgage for long. Instead, mortgages are sold as securities on the global market and that makes it harder for the lender and borrower to renegotiate.
The recent disturbances in the subprime mortgage industry are modest -- they're modest in relation to the size of our economy. But if your family is -- if your family's one of those having trouble making the monthly payments, this problem doesn't seem modest at all.
I understand these concerns. And therefore I've made this a top -- a top priority, to help our homeowners navigate these financial challenges so that many families as possible can stay in their homes. That's what we've been working on, a plan to help homeowners.
We've got a role -- the government's got a role to play. But it is limited. A federal bailout of lenders would only encourage a recurrence of the problem.
It's not the government's job to bail out speculators or those who made the decision to buy a home they knew they could never afford.
Yet there are many American homeowners who can get through this difficult time with a little flexibility from their lenders or little help from their government.
So I strongly urge lenders to work with homeowners to adjust their mortgages. I believe lenders have a responsibility to help these good people to renegotiate so they can stay in their home.
And today I'm going to outline a variety of steps at the federal level to help American families keep their homes.
First, we're going to work to modernize and improve the Federal Housing Administration. That's known as the FHA. The FHA is a government agency that provides mortgage insurance to borrowers through a network of private sector lenders. Sixteen months ago I sent Congress an FHA modernization bill that would help more homeowners qualify for this insurance by lowering down payment requirements, by increasing loan limits, and providing more flexibility in pricing. These reforms would allow the FHA to reach families that need help: those with low incomes and less than perfect credit records or little savings.
Last year the House passed this bill with more than 400 votes. Unfortunately, Congress hadn't acted this year.
This would be a good task for Congress to come and get FHA modernization done so that we can help these people refinance their homes, so more people can stay in their homes.
I look forward to signing a bill as quickly as possible.
In the coming days, the FHA will launch a new program called FHA Secure. This program will allow American homeowners who have got good credit history but cannot afford their current payments to refinance into FHA-insured mortgages.
This means that many families who are struggling now will be able to refinance their loans, meet their monthly payments and keep their homes.
And we're going to start reaching out and making sure people know that this option is available to them so they can stay in their homes.
Second, I'm going to work with Congress to temporarily reform a key housing provision of the federal tax code which will make it easier for homeowners to refinance their mortgages during this time of market stress.
Under current law, homeowners who are unable to meet their mortgage payments can face an unexpected tax bill.
For example, let's say the value of your house declines by $20,000 and your adjustable rate mortgage payments have grown to a level that you cannot afford. If the bank modifies your mortgage and forgives $20,000 of your loan, the tax code treats that $20,000 as taxable income.
When your home is losing value and your family is under financial stress, the last thing you need to do is to be hit with higher taxes. So, I believe we need to change the code; make it easier for people to refinance their homes and to stay in their homes.
And to this end, I've called Senator Debbie Stabenow of Michigan and told her that she's on to a good idea with the bill that she and George Voinovich have submitted to the Senate.
The House has got Rob Andrews of New Jersey and Ron Lewis of Kentucky introducing legislation that is a positive step toward changing the tax code so people aren't penalized when they refinance their homes.
With a few changes in the Senate version and the House version, this administration can support these bills.
And we look forward to working with them -- the senators and the members of the House to pass common-sense legislation to help us address this issue.
Third, my administration will launch a new foreclosure avoidance initiative to help struggling homeowners find a way to refinance.
Secretary Jackson and Secretary Paulson are going to reach out to a wide variety of groups that offer foreclosure counseling and refinancing for American homeowners. These groups include community organizations, like NeighborWorks, and mortgage lenders and loan services and the FHA, as well as government-sponsored enterprises like Fannie Mae and Freddie Mac. These organizations exist to help people refinance and we expect them to do that.
It's easy for me to stand up here and talk about refinancing. Some people don't even know what I'm talking about. And we need to have a focused effort to help people understand the mortgage financing options available to them, or to identify homeowners before they face hardships, to help them understand what's possible.
Finally, the federal government has taken a variety of actions to make the mortgage industry more transparent, more reliable and more fair, so we can reduce the likelihood of these kind of lending problems -- you know, won't happen again.
Federal banking regulators are improving disclosure requirements to ensure that lenders provide homeowners with complete and accurate and understandable information about their mortgages, including the possibility that their monthly payments could rise dramatically.
In other words, we believe if the consumer is better informed, these kind of problems won't arise -- or are less likely to arise in the first place.
Banking regulators are also strengthening lending standards to help ensure that borrowers are not approved for mortgages larger than they can handle.
This administration will soon issue regulations that require mortgage brokers to fully disclose their fees and closing costs.
We're pursuing wrong-doing and fraud in the mortgage industry through the Department of Housing and Urban Development, the Department of Justice, the Federal Trade Commission and other agencies. In other words, if you've been cheating somebody, we're going to find you and hold you to account.
And we'll continue to do our part to help improve all aspects of the mortgage marketplace. That's really important to this economy of ours.
With all the steps I've outlined today, we will deliver help and hope to American families who need it, we'll help guard against future problems in the housing sector, we'll reaffirm the vital place of homeownership in our nation.
When more families own their own homes, neighborhoods are more vibrant and communities are stronger and more people have a stake in the future of this country.
Owning a home has always been at the center of the American dream. Together with the United States Congress, I'll continue working to help make that dream a reality for more of our citizens.
Thank you.
COLLINS: All right. We have been aware that the president will not be taking any questions today, but we also know that the Treasury Department secretary, Henry Paulson, and Alphonso Jackson from HUD, are going to be sticking around. They will be taking questions.
We will monitor that and bring any of that to you should we think that necessary.
You hear the president talking about several different things that he says the administration is trying to do to help with this mortgage crisis, but the headline that we already know here is that the government, apparently, according to him, can only do so much. It is limited, and that means no federal bailout at this point -- Tony.
HARRIS: All right. Let's get some business perspective on what the president had to say.
Joining us from New York, CNN personal finance editor Gerri Willis.
Gerri, good morning again.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Good morning again. Good to see you, Tony.
HARRIS: All right. So we have no federal bailout. Loud and clear from the president.
WILLIS: Right.
HARRIS: So break it all down. What did you hear here?
WILLIS: There was a lot going on there. He did say -- President Bush did say that there will be no bailout of speculators, no bailout of investors, but he did outline plans for average Americans who are struggling with toxic mortgages.
Let's start with his FHA secure plan.
That's a plan to change the Federal Housing Administration's insurance programs for loans, to expand it to include people who aren't currently in it. Under this proposal, borrowers who are more than 90 days past due on their loans will be able to refinance with the FHA's mortgage insurance program. Now, as you know, this program is backed by the government, and it lowers the cost of mortgages for borrowers. They get lower interest rates. That's a very big deal. And estimates are that this could actually help about 80,000 people who are really in tight times.
Now, the other thing the president talked about was tax reform, because the IRS rules make it difficult for people who are trying to unload homes in these scenarios. They want to make it so it doesn't punish families who are forced to sell homes for less than their loan amount.
Right now, the tax law counts as canceled mortgage debt on primary residences as income. So he wants to get rid of that, but only temporarily is what he's talking about.
He also wants to create a group to look at the industry to come up with solutions, and he also mentioned a couple of other things that were I think less than expected. Some counseling for folks.
HARRIS: Right.
WILLIS: Obviously, there are programs out there that do that that are federally financed to help people out of their problems. More fair laws.
He said we need more fee disclosures for mortgage brokers. This has been something that folks have been very concerned about.
HARRIS: Yes, definitely.
WILLIS: He wants to see more disclosure in mortgage documents. I don't know if you have tried to read your mortgage, Tony, but...
HARRIS: Yes, it's maddening. I mean -- I mean, it just blurs all together here.
But, you know, that's not it. Give us an idea of some of the other proposals that are sort of floating around in D.C.
WILLIS: Well, you know, the FHA reform is something that a lot of people have talked about...
HARRIS: Yes.
WILLIS: ... but there are more aggressive programs out there. A direct bailout of homeowners, for example.
Senator Hillary Clinton has come without with a plan which would bail out homeowners at risk with a billion dollars in aid that would go directly to states. And she also wants to curb lending abuses.
Senator Chuck Schumer yesterday challenged lenders to take responsibility, step up to the plate, and shoulder costs of helping homeowners in danger of defaulting.
And then, of course, John Edwards, Senator Barack Obama... HARRIS: Yes.
WILLIS: ... everybody is in there to get rid of predatory mortgages, prevent fraud. There are lots and lots of proposals out there.
WILLIS: So, Gerri, bottom-line this for me. What did the president say and what does it really mean? Bottom-line it for me.
WILLIS: Bottom line, the president has been criticized for not jumping in sooner, but his FHA proposals could go into effect really quickly.
HARRIS: OK.
WILLIS: He doesn't need congressional action. Tax code changes would require Capitol Hill's approval, but he's likely to get it since a lot of people already know this and support this.
So, it's interesting. You know, it might have taken a long time to get to the podium, but some of this stuff could happen fast.
HARRIS: There she is, CNN personal finance editor Gerri Willis.
Gerri, great to see you again. Have a great weekend. Thanks.
WILLIS: My pleasure. You too, Tony.
DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: I'm Dana Bash in Boise, Idaho, where everybody is holding their breath to find out if their senator, their long-time senator, will step aside.
I'll have more on that coming up in the NEWSROOM.
COLLINS: And from brain surgery to varicose veins, medical correspondent Elizabeth Cohen will tell us when to get a second opinion.
HARRIS: You know, leprechauns can learn a thing or two from this lucky family. They won millions of dollars in a lottery not once. How about twice? And they are just as shocked as you are.
We're talking to them live coming up in the NEWSROOM.
(COMMERCIAL BREAK)
COLLINS: A men's room arrest could end a senator's career, and sources say the end could come soon, possibly today, for Idaho Republican Senator Larry Craig.
Congressional Correspondent Dana Bash is live with us today from Boise.
Dana, what are you hearing there?
BASH: Well, what we're hearing is CNN sources are telling us that the RNC, the Republican National Committee, was poised to make an extraordinary move yesterday, and that would have been to issue a statement explicitly calling on Senator Craig, their own senator, to resign. But we're told that party leaders held off on that in part because they got word from folks here in Idaho that that was likely in the works already.
And also, in Washington, they were told by Republicans here in Idaho that that kind of move, that kind of pressure from the Republican National Committee would backfire, would likely backfire. In fact, one source who is familiar with these discussions said that that would have been explosive.
Why? We're told because Senator Craig is somebody who has certainly served for a quarter century here. He has served in Idaho since he was 28 years old. And he is somebody who is not likely to take the kind of pressure that he has been getting already from the national party lightly, and that we're told that it was made clear to those in Washington that this is a decision that he's got to make on his own and he needs a little bit of breathing room. That's why that did not happen yesterday.
Still, you know, we have not heard from Senator Craig's office today. Yesterday, Heidi, they issued a statement, a very carefully- worded statement, saying there would be no announcement yesterday. Meaning Thursday.
And sources are still telling us that they do think that an announcement is imminent, perhaps, perhaps as early as today. But as I said, what we're also told is that we should sort of take that carefully, because Senator Craig, this is a tough decision for him because of his years of experience and because of how hard, of course, this entire situation is for him. So this is a decision for him and his family.
But again, we are told that people who are close to him do believe that it could be very soon -- Heidi.
COLLINS: Interesting. But, you know, it does come after that release yesterday of the police recordings that were made after Craig's arrest in June.
Dana, listen with me to a portion of that.
(BEGIN AUDIO CLIP)
SEN. LARRY CRAIG (R), IDAHO: I don't -- I am not gay. I don't do these kinds of things and...
SGT. DAVE KARSNIA, ARRESTING OFFICER: It doesn't matter. I don't care about sexual preference or anything like that. Here's your stuff back, sir. I don't care about sexual preference.
CRAIG: I know you don't. You're out to enforce the law.
KARSNIA: Right.
CRAIG: But you shouldn't be out to entrap people, either.
KARSNIA: This isn't entrapment.
(END AUDIO CLIP)
COLLINS: Dana, have you had an opportunity to talk to the people of at least Boise, where you are, Idaho, in general, about their reaction to the tapes?
BASH: Well, you know, there are different interpretations when you look at sort of the legal implications for what that audiotape showed.
Some people say it could help Senator Craig's case. Some people say it could hurt it. But when you think about what frankly matters most here, and that is the political implication, the reaction, at least immediately to that, was that this was another case of embarrassment for the people here in Idaho. That's what you've heard from people on the street, people in cafes, that not only are they disappointed, but they're also embarrassed.
And this was quite explicit, at least certain parts of it, in terms of what went on in that bathroom. And that is not going over well here in Idaho, as you can imagine.
COLLINS: It was pretty explicit. Long, too.
All right. Dana Bash, thanks much, live from Boise, Idaho, this morning.
HARRIS: Steroids, drugs and the WWE. World Wrestling Entertainment suspends 10 wrestlers for violating its drug testing policy. The move follows a New York investigation into illegal steroid sales.
No names yet. And so far, no charges. But the WWE says it will begin identifying the suspended wrestlers in November.
In June, you may recall, pro wrestler Chris Benoit killed his wife and son and then hanged himself. Investigators say there was a steroid and other drugs in his system.
COLLINS: No matter how much you trust your own doctor, there are times you will need and should get a second opinion.
Our medical correspondent Elizabeth Cohen joining us now with guidelines for the empowered patient.
Elizabeth, you talked to a woman with cancer who was originally misdiagnosed. It must have been devastating.
ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: It was devastating. And you know what? She's the one who said, I think I need a second opinion.
This woman's name is Marcy Smith (ph), and she was diagnosed with a sarcoma, a kind of brain tumor. But Marcy is a nurse and a very smart woman, and she said -- there's Marcy there with her husband and here 3-year-old son, Josh. And she said to herself, something about this doesn't sound right, I want to get a second opinion.
And her neurosurgeon, Dr. Grant Butram (ph), he encouraged her to get one and actually helped her to get a second, a third and a fourth opinion. It turns out it wasn't a sarcoma. It was a glioblastoma, which is a totally different kind of brain tumor.
Now, Marcy actually had an appointment to get chemo for the original diagnosis.
COLLINS: Wow.
COHEN: And if she had kept that appointment, totally wrong chemo, totally wrong radiation. So, just another example of a really -- it's a good thing she got that second opinion.
COLLINS: Oh my goodness, no question.
With different scenarios -- and this seems pretty extreme -- let's say you blew out your knee or something like that, give us an idea of when second opinions are absolutely dire, as opposed to just a good idea.
COHEN: Right, because those are two different situations.
The doctors I talked to said, look, it can never really hurt to get a second opinion. So, you know, go ahead and get one. But that there are certain situations where it's especially important.
You need a second opinion when your life hangs in the balance. If a doctor is telling you, you have brain tumor of this time, it's worth asking to make sure that really is the kind of brain tumor you have.
COLLINS: Sure.
COHEN: When a procedure is invasive, if a doctor says you need cardiac bypass surgery, before someone opens up your chest, you might want to really make sure that you need to do that.
Also, when there are alternatives. For example, varicose veins. There are lots of different ways of treating varicose those. They are not a live-threatening condition, but why do surgery if you could do something else? So, under those circumstances definitely want to get a second opinion.
COLLINS: OK. It's such great topic though because some people are pretty stubborn. I've been with this doctor for 10 years. He's been fantastic or she's been fantastic. And, I'm sticking with him.
COHEN: Right. And actually, one cardiologist said to me, we need to get rid of that Dr. Marcus Welby model. Remember him? And people love their doctors. I love my doctor. But, you know what, if God forbid they diagnosed me with something really awful, I would want a second opinion to make sure I really have it. It's not that I don't love and trust them but this is important.
COLLINS: Yes, very important. In fact, in your column you list five specific procedures if you have to have one of them done, you should automatically go for a second opinion before following through with any of them.
COHEN: Right, so let's talk about a couple of them. One of them is as we discussed open heart surgery or bypass -- cardiac bypass surgery. Doctors are doing fewer and fewer of those now because there are alternatives. So, before someone opens up your chest, get a second opinion. Another one is hysterectomies.
Doctors used to do a lot of hysterectomies. They're doing fewer and fewer because there are alternatives. So, if you have pelvic pain and bleeding and the doctor says let's do a hysterectomy, you might want to get a second opinion. There may be something less invasive they can do besides yanking out an organ from your body.
COLLINS: Yes, I believe you --. Research, too. If you have the research and you have the information as your guide and your defense, then maybe you would know about some of that.
COHEN: You could help answer your own question in a way.
COLLINS: Yes. All right. Elizabeth Cohen, love this topic. Thanks so much.
COHEN: Great and that article is on cnn.com/health.
COLLINS: Terrific. Thank you, Elizabeth, very much.
COLLINS: Good morning, once again, everybody. It's still morning. right, 11:30 eastern time. I'm Heidi Collins.
HARRIS: And I'm Tony Harris. Welcome back to the CNN NEWSROOM. President Bush today confronting two of the nation's most troubling topics. First, the mortgage crisis. Minutes ago President Bush discussed in the White House Rose Garden specifically he is offering federal aid to some Americans at risk of losing their homes. Many can't afford to refinance their way out of surging adjustable rate loans.
This afternoon, President Bush turns to the Iraq War and wants being called the unvarnished assessment. He and Dick Cheney will attend a high level briefing at the Pentagon. Defense Secretary Robert Gates and the Joint Chiefs of Staff will lay out their progress report. That meeting behind closed doors.
COLLINS: Striking it rich, you definitely can if you happen to win tonight's Megamillions Lottery. The jackpot insanely large. Sounds pretty good, doesn't it?
HARRIS: Hey, look at my peps there, with the Brooklyn Dodgers shirt on. I love it. I love it. Leprechauns can learn a thing or two. There you go. Jackie Robinson, dog gone it. From this lucky family they won millions of dollars in a lottery not once, can you believe this but twice and they're just as shocked as you are.
We talk to them live in just a couple minutes right here in the CNN NEWSROOM.
(COMMERCIAL BREAK)
COLLINS: You're more likely to get hit by lightning, burn to death from hot tap water, or on a happier note, find a four leaf clover on your first try. Yes, well tell that to someone who cares, because tons of you are hoping to beat the odds and strike is it rich with the Megamillions Lottery game. Tonight's jackpot a staggering 330 million bucks.
Here's the best part. The odds of winning are one in 176 million but someone has to win. Here's a look at the 12 states where Megamillions is played. Take a look at those yellow states there. For all of you would be multi millionaires, good luck.
HARRIS: Lucky in Lotto line New York family most certainly is. They won their state's Lotto not once but twice. Talk about good fortune. Boy I can't wait for this. Adeline and Eugene Angelo join us now live from their hometown of Carmel (ph) New York. Addy, Gene great to talk to you. Yes, nudge him. Will you tell him to wake up that we're on television now, Addy?
ADELINE ANGELO, TWO-TIME LOTTERY WINNER: You weren't supposed to see me do that.
HARRIS: I see everything. Hey, Gene, I love the t-shirt. 1958, was that the year?
EUGENE ANGELO, TWO-TIME LOTTERY WINNER: No. They won in '55.
HARRIS: '58 was the year they left?
E. ANGELO: '57 or '58, around there.
HARRIS: '57, '58 I love the show. I love that show. That was a great show in there in Brooklyn for all those years, even through the losing years. But, great to see you, great to talk to you. Hey, I don't have a lot of -- whole bunch of smart questions here but what I want to know, Addy let me start with you.
How do you do this not once, but how do you do it twice? Tell me about the moment you realized you had a winning ticket, and what was your reaction?
A. ANGELO: My reaction was after my husband woke me up, after he saw it at least 15 minutes before, and he was just sitting there like -- very calmly. And, my reaction was that I didn't believe it. I'm going to just -- I just could've fall. I couldn't believe it at all. My son was there and then he made me realize that my husband was telling the truth.
HARRIS: So, Gene, you buy the tickets, correct?
E. ANGELO: Well, no my son buys them for me every Saturday he puts in for both days. I have the numbers.
HARRIS: but, you had the numbers. All right. Now we get to the rub of it all. All right, what's the code? What's the secret? Come on. Twice in 11 years?
E. ANGELO: I keep on playing the same numbers. I got lucky twice.
HARRIS: Is that really the secret? You just play the same numbers over and over again and you just have gotten lucky?
E. ANGELO: For 40 years I have been playing the same numbers except when they added numbers and then I had to change a few.
HARRIS: So, what was your reaction, Gene, once you realized you had won again and that your take from the state over 11 years was somewhere around what, $7 million?
E. ANGELO: Yep.
A. ANGELO: What was your reaction?
E. ANGELO: Nothing. I just -- I sat there and I watched television.
HARRIS: That's it?
E. ANGELO: I'm not the excitable type.
HARRIS: OK. So, what has been the reaction in your neighborhood among your friends? I understand you took a little bit of time to let this soak in to sort things out with the Lottery people before you started to let folks know.
A. ANGELO: Yes.
E. ANGELO: Well, I -- I don't know. My wife was -- is more excitable she wanted to tell everybody. But I calmed her down.
A. ANGELO: The reaction is really great around here. The neighbors are very happy. They were a little angry that we didn't tell them right away, but then they got over that. They seen the trucks outside.
HARRIS: Yes, yes, all of the TV, that your neighborhood becomes a television village, correct?
A. ANGELO: Yes, yes, yes, yes. I called them this morning and warned them so they wouldn't be too shocked.
HARRIS: I love this line from you. You tell folks that you feel a bit like Britney spears. What's that all about? And are you hanging on to your knickers?
A. ANGELO: Yes, I do feel like -- I'm not used to all of this excitement every day. And I just happen -- it just happened to slip out of my mouth and now it's sticking, because my boys call me Britney now. I know what Britney feels like.
HARRIS: No, go ahead.
A. ANGELO: All I have to do is shave my head I guess and it will be fine.
HARRIS: It was worth the wait. Cha-ching! It is great to talk to you. Congratulations on your good fortune. And I understand you're going to share the money with your family, with your boys. It's just tremendous. Great luck.
A. ANGELO: Yes, my boys.
HARRIS: Yes, I want to get up and out of the bed on the same side as...
A. ANGELO: It's a great feeling.
HARRIS: It has to be.
A. ANGELO: It's a good feeling to help them, it really is.
HARRIS: I'm reaching out and trying to rub off some of that good fortune. It's great to talk to you. Have a great holiday weekend.
A. ANGELO: Oh, you got it. You got it. Here you go. Here you go.
HARRIS: Thank you so much.
A. ANGELO: Thank you very much. Thank you.
COLLINS: It's organic, it's lean, and you shouldn't eat it. Another beef recall. We'll tell you about it after this.
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COLLINS: In just a few minutes from now, 15 to be exact, "YOUR WORLD TODAY" will begin here on CNN.
Isha Sesay is here today. Hi there, Isha.
ISHA SESAY, CNN ANCHOR: Hi there, you guys. Great to see you as always. We have great show lined up for the top of the hour. All of the top stories dominating the headlines right around the world. Today marks the 10th anniversary of the death of Diana Princess of Whales. And earlier her son Prince William and Prince Harry led the tributes in a somber memorial to mark the day. We'll have a live report from London. Our very own Richard Quest is at Buckingham Palace, and he'll give us a sense of the mood in the British capital.
Plus, "Osama bin Jesus?" Well, I'm talking about art, if you want to call it that. It's a holographic image of bin Laden that, lit at a certain angle, turns into Jesus, causing a stir in Australia. We'll have all the details. And who are the 100 most powerful women out there? Well, "Forbes" has done all the hard work. We'll bring the answers at the top of the hour. So stay tuned for that. "YOUR WORLD TODAY" coming up at midday with me, Isha Sesay and Michael Holmes.
Back to you.
COLLINS: Wonderful. We look forward to it. Thanks, Isha.
Another recall to tell you about. This time bad beef in the northwest. Health officials say it could be contaminated with E. coli. AT least Nine people got sick in Washington, Oregon and Idaho. Check your freezer for organic, lean ground beef labelled "Northwest Finest." The beef is also sold in Alaska.
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HARRIS: Princess Diana, 10 years ago today she lost her life in a Paris car crash. Today her sons honor their mother.
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PRINCE HARRY: She was quite simply the best mother in the world.
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HARRIS: Remembering Diana in a moving tribute all day in the NEWSROOM.
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COLLINS: He's among the top tier presidential candidates but he says you might not know a lot about him. Republican Mitt Romney is trying to change that.
CNN Chief National Correspondent John King reports.
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JOHN KING, CHIEF NATIONAL CORRESPONDENT (voice-over): Ask Mitt anything is the format, but first, the candidate looking to build on a strong summer has a point to make.
MITT ROMNEY, (R) PRESIDENTIAL CANDIDATE: And if there's ever been a time we needed change in Washington, it's now. But the question is, are we going to take a sharp turn to the left or are we going to stay true to the values that have made us such a great nation?
KING: He leads in Iowa and New Hampshire and is focusing more and more on South Carolina. With momentum comes challenges. Senator Larry Craig was Romney's Idaho chairman, the campaign moved quickly to sever ties once it learned of his disorderly conduct plea. But Romney won't go as far as other Republicans, demanding Craig resign. ROMNEY: The right course is for him to make this decision, looking at his own conscience.
KING: A much bigger challenge, Romney has spent months working to convince social conservatives like Iowa activist Steve Scheffler his change of heart on abortion rights is genuine, not a political calculation.
STEVE SCHEFFLER, IOWA CHRISTIAN ALLIANCE: A lot of us who've been around for several years are kind of tired of the lip service we've gotten from candidates.
KING: But the questions continue. At one recent event, Romney backed a constitutional amendment banning abortions nationwide. At another, he said each state should decide. In an interview with CNN, he insists there is no contradiction.
ROMNEY: I would welcome an America that didn't have abortion, but that's not where we are today, that's not where the people are. And therefore, in my view, the right course for it, for those of us who are pro-life, is to fight to change hearts and minds and to see Roe vs. Wade overturned, and that would allow states and the elected representatives of the people to be able to make their own decisions with regards to abortion.
UNIDENTIFIED MALE: Governor Mitt Romney turned it around.
KING: More than $5 million in TV ad spending is a leading reason for the summer upswing.
ROMNEY: Hi, how are you? Mitt Romney.
KING: He has the most in the bank among Republicans, in part because he has pumped in $8 million of his own money.
(on camera): How much are you willing to give to your own campaign?
ROMNEY: Oh, that's a closely held secret.
(LAUGHTER)
KING: More than four months until the first votes and a new entry next week could reshape the Republican field. But if you're keeping score this summer, this is the Republican with the most to smile about.
John King, CNN, Charleston, South Carolina.
(END VIDEOTAPE)
COLLINS: And staying with the political arena, we want to give you this information just in here to CNN now. We are learning that White House Press Secretary Tony Snow will be stepping down. You may have heard that before, but now we have a date. We are learning that will take place on September 14th. Again, White House Press Secretary Tony Snow will be stepping down on September 14th. He will be replaced by his deputy. You have seen her quite a bit at the podium when he has not been around. Dana Perino -- Dana Perino, pardon me, will be taking over for him.
Our correspondent Ed Henry is standing by now with a little bit more information on this.
Ed, we knew this was going to happen. Now, we have the date.
ED HENRY, WHITE HOUSE CORRESPONDENT: That's right, I mean it's a time of transition. Let's not forget, today is the last day for Karl Rove as well as the president's deputy chief of staff. He's been here from day one of this administration. He's leaving in the next couple of hours, we're told. He was quite emotional this morning at their senior staff meeting.
Now, as you noted, senior officials confirming Tony Snow's last day will be September 14th. Dana Perino now will move from deputy press secretary to White House press secretary.
Want to note my colleague Suzanne Malveaux first reported this a couple of weeks ago, but it's now officially confirmed by the White House itself. But CNN was ahead of the curve on that one -- Heidi.
COLLINS: Very true. All right, Ed Henry, thanks so much for that.
Again, White House Press Secretary Tony Snow stepping down officially now on September 14th -- Tony?
HARRIS: And still to come, remembering a princess. Hundreds gather in London to pay tribute to Princess Diana a decade after her death, "YOUR WORLD TODAY" at the top of the hour.
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HARRIS: Hitting a 61 million to one shot in the baby lottery. An Ohio mom gave birth Wednesday to her second set of triplets. Can you imagine? The new triplets, like the older ones, were conceived naturally without fertility treatments, and doctors say that's a one in 64 million chance. Mom's not taking any credit, but she says Dad is a one in 64 million guy.
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VICTORIA LASITA, MOTHER OF 2 SETS OF TRIPLETS: I couldn't ask for a better husband. I mean, he worked 10, 12 hours a day and anybody that knows us knows the second he comes in from work, I don't have to do anything. He takes over, steps in and helps me get them fed and bathed and dressed ...
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HARRIS: Sounds like a keeper. The family's older triplets turn four in December. COLLINS: Real quickly before we go, I want to let you know that the president will be making a statement at 12:45. It's at the beginning of the White House briefing. We expect that statement will be in regard to the information we just gave you moments ago about White House Press Secretary Tony Snow and the fact that he will be stepping down on September 14th. So listen for the president to make those comments.
In the meantime, have a great holiday weekend, everybody.
I'm Heidi Collins.
HARRIS: And I'm Tony Harris.
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