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Boy Admits Starting Fire in California; Interest Rate Cut? Fed Decision Today; Madrid Train Bombings: Verdicts In

Aired October 31, 2007 - 09:00   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, everyone. You are in the CNN NEWSROOM.
I'm Tony Harris.

HEIDI COLLINS, CNN ANCHOR: Hi there, everybody.

I'm Heidi Collins.

Happy Halloween to you.

Watch events come in to the NEWSROOM live on this Wednesday morning. It is October 31st.

Here's what's on the rundown now.

Pointing the finger in a California wildfire. This hour, we go deeper into one investigation. Wait until you hear who authorities say is to blame.

HARRIS: Your wallet, your future. The Fed's key decision today on a key raid -- what will likely happen and what it means to you.

COLLINS: And police say he posted the job, then killed the applicant. What you should know when replying online in the NEWSROOM.

A child playing with matches and thousands of acres burned. Fire investigators in southern California say a boy has admitted starting one of the region's worst wildfires. The Buckweed Fire charred more than 38,000 acres. More than 60 buildings were destroyed.

Among the losses, at least 21 homes. Fifteen thousand people were chased from their homes, five people were injured, two of them firefighters.

The boy's name and age have not been released. He is in custody of his parents right now. Prosecutors in Los Angeles County will decide whether he should face charges.

And let's ask a few more questions about this case. Joining us by phone, Deputy Luis Castro of the Los Angeles County Sheriff's Department.

Deputy Castro, good to talk to you.

First question, was the boy ever arrested or cited? And I guess to follow up, has the family been cited?

DEP. LUIS CASTRO, L.A. COUNTY SHERIFF'S DEPT.: At this time, they're still waiting for the charges to be given to the district attorney's office for prosecution. The boy was identified as the suspect and he was questioned. We obtained the statement that he gave us.

HARRIS: Deputy, are you not convinced that this was merely an accident?

CASTRO: You know, at this time, it's still too early to tell in the investigation. We are developing more information as we go. And again, sheriff's arson and explosive detectives, in conjunction with the Los Angeles County Fire Department investigators, are investigating it and they're using all the resources to bring the situation into light.

HARRIS: Sure. But you seemed to indicate just a moment ago that you're anticipating charges. Can you tell us why?

CASTRO: Well, at this time, again, it's still too early to tell. We want to get all the facts first. The mere fact that they questioned the boy and he's given us a statement that he did, it's the first step.

HARRIS: OK. What more can you share with us about the statement other than the fact that he has admitted to starting the Buckweed Fire?

CASTRO: That's still -- again, that's still part of the investigation. We don't want to taint anything, especially if it's going to be for the prosecution.

HARRIS: Got you.

CASTRO: And then, again, too, you know, it's going to be a hard time right now for everybody. Everybody is still recovering. It has to be hard on the parents...

HARRIS: Sure.

CASTRO: ... to know that their child may have been the cause of this great fire. He may not have known the magnitude of the fire. And again, it's still too early to really assess everything.

HARRIS: I got you.

And Deputy, what led you to the boy?

CASTRO: Again, the investigators, after conducting a thorough investigation right after the fires, as soon as they were able to get in, were led by different pieces to this individual.

HARRIS: OK.

Deputy Castro, appreciate your time. Thank you. CASTRO: All right.

COLLINS: Let's take a closer look now at the southern California wildfires. At least 18 of 23 fires are now fully contained. The rest, at least 70 percent contained.

In all, the fires burned more than 500,000 acres, 1,600 homes were leveled. The fires are blamed now for at least 14 deaths.

HARRIS: An earthquake rattles homes and nerves in northern California. No reports of injuries or serious damage this morning. The magnitude 5.6 quake was centered about nine miles northeast of San Jose. It gave people who live in the area quite a jolt.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: We really felt it. It was the first one since '89 and, yes, we were a little bit upset because we didn't know exactly where the epicenter was. So we were scared.

UNIDENTIFIED MALE: We were sitting -- just having dinner over there, and we felt like it was like a train coming through, you know? And everyone stand up and run out of the place. But it wasn't that bad.

(END VIDEO CLIP)

HARRIS: OK. Let's see more of these pictures here.

And as you can tell, the quake toppled some items off of store shelves. Officials also fielded several cars about gas leaks and broken water pipes, but again, no reports of any major damage or injuries. The earthquake was the largest to hit the San Francisco Bay area in almost two decades. We hope to take with a seismologist about how close the big one might be straight ahead in the NEWSROOM this morning.

COLLINS: A Federal Reserve decision today, what it could mean for your mortgage or credit card rates tomorrow.

Ali Velshi at the Chicago Board of Trade.

Good morning to you, Ali. What kind of a change are we talking about here, interest rates? And what does it mean for consumers?

ALI VELSHI, CNN SR. BUSINESS CORRESPONDENT: Good morning, Heidi.

Well, here is what we've got. We've got Fed rates at 4.75 percent. Now, the prime rate, which is what so many of our loans and credit cards are tied to, is at 7.75 percent, and what the market is betting on is a quarter percentage point cut, which takes that prime rate down to 7.5 percent. So, a home loan, a credit card loan, anything that's tied to that rate could get a little bit cheaper today.

Now, what happened is, a little while ago, we got the third quarter GDP number, the economic growth number, which is really the main economic number of all. And it was actually stronger than most people had expected.

So while that Federal Reserve meeting is going on and those governors are in there deciding about what they're going to tell us this afternoon at 2:15 Eastern, some people say the chance of that rate cut might have just gone down a little bit. But most people here are still betting for a rate cut, and when it happens, or any announcement happens at 2:15 p.m. Eastern, this place will erupt, these traders will be trying to make sense of that, and your rates will probably go lower across the board -- Heidi.

COLLINS: Well, Ali, let's talk about the factors for a moment. Sometimes people don't understand what specific economic factors the Fed takes a look at when it makes a decision like this.

VELSHI: Well, let's look at the ones that we all -- the ones that most touch people. Right now we are worried about whether this economy, which is slow, not that slow, is possibly going to tip into a recession.

What have we got? We've got a continued slowing housing market which affects every homeowner in the country.

We've got oil prices. And by the way, other commodity prices which are a record highs. We've got the U.S. dollar which is at low levels, and we've got consumer confidence, which is how consumers feel about the economy, at a two-year low.

All of this heading into the most important retail season of the year, the holiday shopping season. So if you think that there might be a recession, if you think your home price is going lower, you think you might not have a job and you think your energy costs are going to be higher this winter, Heidi, what's likely to happen is you're likely to spend a little less money. And that's what the Fed is trying to keep in mind, because if they lower those interest rates, that makes it cheaper for you to borrow money, it makes it cheaper for businesses to borrow money and expand and hire people, and that's more people with incomes.

So, as a result, that is what the Fed is trying to balance, do we make it easier for people to keep spending money and businesses to keep spending money, or do we just do nothing and let things take their course?

COLLINS: Yes. It's kind of like a big, fat domino, isn't it?

VELSHI: It really, really is. That's exactly right.

COLLINS: Yes. So about 2:15? I think that's when we find out, right?

VELSHI: And I will be right here.

COLLINS: OK. Very good.

Ali Velshi "Minding Your Business".

Thanks, Ali.

VELSHI: See you, Heidi.

(WEATHER REPORT)

HARRIS: Well, the verdicts are in. Judgment day for accused masterminds in the deadly Madrid train bombing. Some surprises from Madrid.

(COMMERCIAL BREAK)

COLLINS: Three guilty of mass murder, but there were eight alleged masterminds. In fact, it is judgment day now for more than two dozen men accused in the deadly Madrid train bombings.

CNN's Paula Newton is live now right outside the courtroom.

Paula, tell us, what is the reaction to this morning's verdict?

PAULA NEWTON, CNN INTERNATIONAL SECURITY CORRESPONDENT: Incredibly disappointed. A lot of the survivors themselves and the victims' family members have said that they really can't believe this kind of a verdict.

From what they've heard over four and a half months of testimony, they thought there was enough evidence to at least get the eight main ringleaders behind bars for 40 years, the maximum life sentence here. That didn't happen. They are reviewing now 700 pages of this judgment, but it's fair to say that right off the bat, they're saying this just isn't good enough.

And this will have some repercussions here in Spain. People wanted closure from this. They wanted some measure of justice, too. They feel that maybe they got a little bit of justice, but that closure will probably never come to them in terms of when they think about the family members they lost and what exactly went on, on March 11, 2004.

COLLINS: Paula, I wonder, is there another process? I mean, is there some type of appeal? Is there something legally that could happen later for the rest of the people?

NEWTON: You can understand how these things are. Yes, of course, there are appeals. And I spoke to lawyers who said that perhaps they are considering some appeals. But they, themselves, are very realistic about how this would go forward.

This case was decided by a panel of three judges. You could almost say from what they looked at, that the circumstantial evidence that they had against these suspects in an American court, they most likely would have gotten convictions. But these are Spanish laws, a Spanish courtroom. And under those narrow interpretations, even going back down the way of appeal, they probably still won't get the kind of convictions they are looking for. They're going to look at everything and see if they do go down that road, but by any measure there's a lot of disappointment here today.

COLLINS: Yes, it sounds like it. All right.

CNN's Paula Newton from Madrid, Spain, this morning.

Paula, thank you.

HARRIS: Putting Senator Clinton on the defensive, that was the idea going into last night's debate. So what really happened?

(COMMERCIAL BREAK)

HARRIS: Barrels loaded, taking aim at the frontrunner. Senator Hillary Clinton in the hot seat at the Democrats' latest debate.

More from CNN Senior Political Correspondent Candy Crowley, part of the best political team on television.

(BEGIN VIDEOTAPE)

SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: Well, first of all, I think...

CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT (voice over): Barack Obama called it the most hyped fight since Rocky versus Apollo Creed, after which he took a jab at what he called politically convenient politics.

OBAMA: And Senator Clinton, in her campaign, I think, has been for NAFTA previously. Now she's against it. She has taken one position on torture several months ago and then most recently has taken a different position. She voted for a war, to authorize sending troops into Iraq, and then later said this was a war for diplomacy.

CROWLEY: Looking to change the dynamics of a race dominated by Hillary Clinton, her chief rivals stepped it up in their seventh debate, questioning her consistency, her credibility, her elect ability.

SEN. CHRISTOPHER DODD (D), PRESIDENTIAL CANDIDATE: Whether it's fair or not fair, the fact of the matter is that my colleague from New York, Senator Clinton, there's 50 percent of the American public that say they're not going to vote for her.

CROWLEY: It was not the knockdown-dragout so many predicted, but it was pointed. John Edwards wielded the sharpest blade, standing by his accusation of double talk.

JOHN EDWARDS (D), PRESIDENTIAL CANDIDATE: Senator Clinton says that she believes she can be the candidate for change, but she defends a broken system that's corrupt in Washington, D.C. She says she will end the war, but she continues to say she will keep combat troops in Iraq and continue combat missions in Iraq.

CROWLEY: There was an edge to her, but Clinton played the frontrunner's game. Refusing to engage with her Democratic opponents, she was aiming higher.

SEN. HILLARY RODHAM CLINTON (D-NY), PRESIDENTIAL CANDIDATE: Because I have stood against George Bush and his failed policies. They want to continue the war in Iraq, I want to end it. The Republicans are waving their sabers and talking about going after Iran. I want to prevent a rush to war.

CROWLEY: It is nearly impossible for a single debate to fundamentally change things, but this one kicked up enough dust for Bill Richardson to step in to defend Clinton. He suggested things were getting a little personal. Democrats, he said, should be positive.

(END VIDEOTAPE)

HARRIS: And Candy Crowley joins us live now from the University of Philadelphia.

And Candy, I was going to ask you one question a moment ago, but after watching your piece I have got a different one for you. So if we didn't get the knockdown-dragout that some expected last night, was the debate at least smart, pointed? Was there good information? Were there any really strong points made in terms of a discussion and debate?

CROWLEY: Listen, it was very aggressive. Certainly Barack Obama was more aggressive than he has been in the past. He ratcheted it up. Certainly John Edwards made sort of a full-on assault of Clinton.

Here is what both of them are trying to do. They said, look, on Iraq, on Iran, on any number of issues, Senator Clinton sort of talks one way and then talks the other way. At one point, she was accused of the most dreadful thing in the Democratic Party, and that is talking like a Republican. So, yes, there -- it was more aggressive, certainly.

As for the substance of it, yes, we, once again, saw what Edwards and Obama and the others really wanted to do, that bright line between them. There was more talk about Social Security. And as you know, there was sort of a dustup about whether illegal immigrants should get driver's licenses.

HARRIS: Yes. Yes.

CROWLEY: Hillary Clinton sort of sidestepped that question. At first, she seemed to say yes, and then she seemed to say no. And Chris Dodd and John Edwards were kind of all over it, saying, you see, this is what we're talking about. You know, she says one thing and then she says something else, sort of straddling the middle.

So, sort of more ammunition for these guys to go out and say she's not being candid with you.

HARRIS: Is that straddling the middle, or is that the beginnings of the whole flip-flopping rhetoric that we're so familiar with?

CROWLEY: You know, I think it is the cautious Hillary Clinton. It's not flip-flopping.

HARRIS: Yes. Yes.

CROWLEY: I mean, she is a very careful candidate and, frankly, that's why she is where she is as the frontrunner. So she has always been very careful. I mean, you know, in her Senate campaign she was that way, so this is the nature of her as a politician.

HARRIS: So let me check your calendar, Candy. The next time the Democrats get together, November 15th, Las Vegas, right here on CNN. Correct? Am I close?

CROWLEY: Absolutely. You got it right.

HARRIS: OK.

Candy Crowley with us, part of the best political team on television.

Candy, appreciate it. Thank you.

Well, you did it once, now it's time for history to repeat itself. Go to CNN.com/youtubedebates and post your questions for the Republican presidential candidates. The debate, Wednesday, November 28th.

Your voice will be heard. That's guaranteed only on CNN, your home for politics.

COLLINS: Are you house hunting? Well, consider this: buy a Pennsylvania home now and get a refund later. But you'll want to look carefully at the fine print as always.

Renee Kaminski of affiliate WPXI lays out this life-and-death deal.

(BEGIN VIDEOTAPE)

RENEE KAMINSKI, REPORTER, WPXI: If you're in the market for the home and have about $399,000 to spend, well, this could be yours. And guess what? There is a money-back guarantee.

(voice over): Here is one for the real estate books. Whoever buys this lovely two-story brick home will get four bedrooms, three and a half baths, and Bob.

UNIDENTIFIED MALE: Well, basically, they're getting this home for free, and then you get your full money back and $100,000. So, in essence, if you can wait until our demise, we're paying you a hundred thousand dollars to buy our home.

KAMINSKI: Confused? Well, here it is again. Bob Husack (ph) and his wife Ricki (ph) have tried to sell their Fountain Hills Drive home in Pine the old-fashioned way, but for 11 months now, the solid cherry custom-made cabinets, the handmade cherry and walnut panels in the den, and private woody backyard views have not brought in a buyer. So the Husacks (ph) have turned to the unconventional.

You can buy our home at the stated price of $399,900. And we've actually had it sold twice for more than that. OK? And then upon he demise of the second one of us, when the second one of us leaves, you will inherit your full money back, plus an extra $100,000 or $500,000.

In here we have...

KAMINSKI: In other words, the Husacks' (ph) household comes with a money-back guarantee, and if the buyer is willing to take on the Husacks' (ph) longtime retirement care in Arizona, they could bank more than just that $500,000. They will inherit the entire Husack (ph) estate upon their death, with one obvious caveat.

(on camera): OK. Let's say you find someone, a stranger that you don't know. What prevents them from putting a contract out on your life?.

UNIDENTIFIED MALE: Well, interesting. I didn't get into it because of the time frame, but there is only one thing that we want into the agreement, will, whatever you choose to call it. The only thing we've put in it is that no money will be paid to you until local authorities determine that we died of natural causes.

(END VIDEOTAPE)

COLLINS: I love the part about Arizona. If they would pay for them to be playing golf in Arizona in retirement, then it's a really good deal.

HARRIS: Well...

COLLINS: In fact, the Husacks (ph) say if you go for the whole package, it's actually worth about $2.5 million.

Deal or no deal?

HARRIS: Can we just get a rate cut today? A substantial rate cut.

COLLINS: Yes. You could buy a couple of those houses.

HARRIS: Thank you.

How was that? Was that all right?

Still to come in the NEWSROOM, what you need to know before answering an online ad. Our guest will have tips that could actually save your life.

(COMMERCIAL BREAK)

HARRIS: Moments away from the bell, the sounding of the bell, as we get the business day started today. Oh boy, oh boy, oh boy, Heidi. All eyes on the Federal Reserve and Central Bank.

Man oh man. You know what? If we get that rate cut today, the market soars and we get closer to 15,000.

COLLINS: Yes. I think that is entirely possible. I just want to know if Ben Bernanke is going to be there in some sort of Halloween costume.

HARRIS: Trick or treat, right?

COLLINS: There is the opening bell now.

TONY HARRIS, CNN ANCHOR: OK. Here we go. 13,797 to get the day started. Ali Velshi and Susan Lisovicz following the markets for us. Ali is in Chicago. And Susan is at the New York Stock Exchange. We'll watch it. We'll watch it. The announcement 2:15 this afternoon.

COLLINS: Nobody there dressed up at all.

HARRIS: No.

COLLINS: Geez. Anyway, home prices falling and oil prices rising. Will the Fed actually respond by cutting those interest rates? Coming up in just a moment.

(COMMERCIAL BREAK)

COLLINS: Good morning, once again, everybody. Happy Halloween to you. It is 9:30 eastern time. I'm Heidi Collins.

HARRIS: And I'm Tony Harris. Welcome back, everyone, to the CNN NEWSROOM.

Homes and lives in ashes. A boy now in limbo after admitting that he started this fire. The Buckwheat wildfire that swept across some 38,000 acres in Los Angeles County and caused by a boy playing with matches. More than 60 buildings were left in ruins. 21 of them were homes. The boy's name and age have not been released. He is in the custody of his parents right now. Prosecutors in Los Angeles County will decide whether he should face charges.

COLLINS: Will you be looking at lower mortgage and credit card rates? Possible, if the Federal Reserve lowers its interest rates today. The Fed is trying to ward off a recession. An interest cut that would make the money, cheaper to borrow of course and that allows businesses to expand and higher more workers. You save money on the lower rates. And that allows for more consumers spending. See, it's easy. Econ 101. Many analysts though expect a quarter point cut in the Federal funds rate. Right now the rate is at 4.75 percent. So, here's how it impacts you. If the Fed does cut rates, commercial banks reduce their prime lending rate. It's at 7.75 percent right now.

You know, it's not so easy. It's trying to figure out the path of a storm. That is why we have Jacqui Jeras with us. Good morning, Jackie.

(WEATHER REPORT) COLLINS: So, this story now. Killed answering an internet ad. Very frightening. Today, her funeral. Katherine Olson's murder drawing national attention because of its links to a popular website. Details now from Allen Constantini of CNN's affiliate KARE.

(BEGIN VIDEOTAPE)

ALLEN CONSTANTINI, CNN AFFILIATE KARE: The whole country has been waiting for answers. Since the craigslist website was a factor in Katherine Olson's murder. Today, Scott County attorney Pat Ciliberto explained 19-year-old Michael Anderson's alleged involvement.

PAT CILIBERTO, SCOTT COUNTY ATTORNEY: The evidence indicates that Katherine was lured to the defendant's home and he shot her in the back and killed her.

CONSTANTINI: The criminal complaint filed today shows cell phone calls between Anderson and Olson last Thursday. The day she went to Anderson savage home for a supposed baby-sitting job. Anderson is charge with second-degree murder for killing her, leaving her body in the trunk of her car at nearby Kraemer Park and dropping her purse at Warren Butler Park. Under the purse was a garbage bag containing Olsen's smashed cell phone wrapped in a bloody bath towel. The towel had Anderson's name written on it in black marker. Anderson, at first, denied involvement but eventually blamed a friend for the killing. Investigators believe the airport plane fueler acted alone.

CILIBERTO: Based upon what we have available to us at this time, there was nobody else that was involved in her murder.

CONSTANTINI: police found blood evidence in Anderson's bedroom and other parts of the house. They also recovered a 357 magnum handgun and dispensed shell casing. Anderson's attorney asks for patience.

ROBERT SPEETER, DEFENSE ATTORNEY: We should just let the judicial process take its course.

CONSTANTINI: The next hearing in the case is set for November 16th. Allen Constantini, KERA (INAUDIBLE).

(END VIDEOTAPE)

COLLINS: This killing is suddenly raising concerns about job hunting. With your safety in mind, we want to talk with Joe Keeley. He is President and CEO of College Nannies and Tutors from Minneapolis this morning. Thanks for being with us, Joe. Listen, I know that you're familiar with the Katherine Olson case. Tell us what went wrong here?

JOE KEELEY, COLLEGE NANNIES AND TUTORS: Well, it was a case of that there is nothing wrong with craigslist or other online pieces. I think it is just forgetting basic common sense and using caution when working with these online job postings is that it's not the same as answering an ad for a Starbucks job when you're looking for baby- sitting or nanny or tutoring job.

COLLINS: Well, because you're dealing with a corporation there. I imagine is, you know, one of the first differences. But, what are the dangers of these online sites? Give us the headline here.

KEELEY: Well, it's that you don't always know who you're dealing with. That when you're e-mailing back and forth and sometimes, even in this case phoning, and that someone can use these places to -- as a venue for their predator-like activity.

COLLINS: So, what should you do then? If you are a person who wants to respond to one of these job opportunities. You don't have any other way of meeting the person other than what they have invited you to do, which is oftentimes go to someone's house. Especially, in the case of possibly being a baby-sitter or a nanny because they usually want you to meet the kids.

KEELEY: Sure. Well, in our case, an increasing popular safety precaution for both families and would-be nannies or baby-sitters is using an agency and for baby-sitters and nannies there isn't a cost for that. But there will always be some folks looking for positions on their own. In that case, it's important to screen the people that you are talking with. Both the families and the nannies as well, to ask a lot of the questions. There's a lot of news that's around family screening applicants but the reverse as in this horrible tragedy needs to be the case as well.

COLLINS: Yes and I don't think we often thing of that. Usually, the parents who are looking for someone really great to take care of our kids. Let's talk about some of those things then you can do if you are the potential baby-sitter or nanny. In fact, you have several there available. Let's go ahead on the first one here. This says, never post or give out your address, your phone number or meeting place online. Why is this so important?

KEELEY: Well, it's so important because you never know who is going to see that. When e-mails forwarded so easy, it's very important to think about meeting in a public place, potentially bringing someone as well because again, you never know who you're actually talking with.

COLLINS: Yes and in fact, your next one says, really use extreme caution when you're talking about a meeting place. Take somebody with you or go to somewhere public which, again, is pretty hard to do when you've been invited to someone's house to actually meet their kids. I know you have several other tips available online. So, we want to direct everybody to that. Your website collegenannies.com. And we certainly appreciate your time this morning. Joe Keely, President and CEO of College Nannies and Tutors. Thank you.

KEELY: Thank you.

HARRIS: And this just in to CNN. The associated press is reporting that Karen Hughes, one of the president's top advisers, most trusted advisers, certainly a top confidant to this president, is leaving the administration. You'll recall she left the administration after the first term. Came back to lead efforts to improve the United States' image aboard, particularly in the Arab world from within the State Department. She is leaving that post by the end of the year. The associated press reporting that Karen Hughes plans to quit her job as undersecretary of State and returns to Texas. More on this story as we get it here in the NEWSROOM.

COLLINS: What you eat and your risk of getting cancer. Find out the top five food rules for reducing that risk.

(COMMERCIAL BREAK)

COLLINS: A matter of life and death. The Supreme Court stepping in to block the execution of a convicted killer in Mississippi. Now, new questions about lethal injection. It is the third time the justices have granted reprieves to death row inmates since last month. That's when they agreed to decide a larger constitutional issue of lethal injection. That case centers around Kentucky's lethal injection procedures. Opponents of the death penalty say inmates suffer excruciating pain which amounts to cruel and unusual punishment. A ruling from the high court expected next year.

HARRIS: You know, what you eat matters when it comes to fighting cancer. That conclusion from Atlanta Market study on cancer and diet. Medical correspondent Elizabeth Cohen here with some of the food rules that might reduce your risk. Well, I'm all ears.

ELIZABETH COHEN, CNN CORRESPONDENT: You're all ears. You know, that's good to hear. Because, I think sometimes people don't get the link. They get it that what you eat affects your heart. You better keep your weight down for the sake of your heart. They don't always get it, that there is a connection between what you eat and your weight and whether or not you're going to get cancer. But for the second time, a worldwide group of experts has said there is a strong food cancer connection. They say, in fact, that we might be able to prevent 30 to 40 percent of all the cases of cancer out there if people ate right. Well, what does it mean to eat right? We're going to tell you.

We have five tips how to eat right to fight cancer. Eat a plant- based diet. Very simple. If it comes up from the ground, it's good and people have messed with it, processed it, not as good. Maintain a healthy body weight. That's so important. Being overweight puts you at higher risk for having cancer. Drink less alcohol. Alcohol, not good for cancer. Don't eat much red meat. Keep it to about 10 percent of your diet and keep your fat intake down in general. OK, here are some tips for how to do that.

HARRIS: I'm good with four of the five.

COHEN: I won't ask what the fifth one is, OK? I won't ask.

HARRIS: But here is the question. I'm wondering how strong the linkage is, the food cancer link. When we think about how strong the link is between smoking and cancer.

COHEN: Right, right. And I'll be honest. The link is not as strong. The link between smoking and cancer is about as strong as it gets. The link between food and cancer is there but not as strong. But even knowing that, here is what is so important. Eating right is such a great idea for your entire body.

HARRIS: Absolutely.

COHEN: It helps cut the risk of heart disease and the rules are all pretty much the same.

HARRIS: Yes. OK. All right. Anything else we need to take care of it?

COHEN: No, I think that's it. I think that's it. Cancer, heart disease, 4 out of 5.

HARRIS: The linkage, OK, great. Elizabeth, thank you.

COLLINS: Do it yourself project almost does him in.

(BEGIN VIDEO CLIP)

DR. WALTER FRIEDEL, INJURED BY STAND 'N SEAL: By the time I made it from my bedroom to kitchen, I was down on one knee. I was so short of breath. I couldn't catch my breath.

(END VIDEO CLIP)

COLLINS: Homeowner gets really sick by a recalled item still on store shelves. Consumer Product Safety Commission failure? We're keeping them honest.

(COMMERCIAL BREAK)

HARRIS: The music. The music. It's time to tell you about the podcast. We do it every day here at CNN, certainly in the NEWSROOM. News, sports, weather together. The kitchen sink. No, I'm just kidding. I tell you what though. Today, being Halloween, we might get. I understand, Heidi, that Don Lemon is running around here in a Circa 1972 Michael Jackson enjoy yourself dancing machine afro.

COLLINS: He took it off.

HARRIS: He took it off?

COLLINS: Now, he's on the phone.

HARRIS: We will get that cued up for you! The podcast available to you 27/7. Just go to cnn.com and download the CNN NEWSROOM podcast. Available to you again 24/7.

COLLINS: It was very funny, I promised. On to this now, though. Unsafe products putting you at risk. Think about all those recalls that we've been telling you about here in the NEWSROOM and Christmas being just right around the corner. Now Democrats want the administration's top consumer watch dog thrown out. Is the agency in charge of keeping you safe doing its job. CNN's Randi Kaye is keeping them honest.

(BEGIN VIDEOTAPE)

RANDI KAYE, CNN CORRESPONDENT: So, this is the room where you used it?

DR. WALTER FRIEDEL, INJURED BY STAND 'N SEAL: This is the room. The infamous room.

KAYE: It was supposed to be a simple do-it-yourself project. The grout in this tile floor needed work. So Dr. Walter Friedel bought six cans of Stand 'N Seal grout sealer sold exclusively at Home Depot.

FRIEDEL: What I did was take the can and shake it up the way they instructed you to.

KAYE: So, whatever was coming up, any of those vapors would have been coming right into your face?

FRIEDEL: Absolutely.

KAYE: But as far as you knew?

FRIEDEL: They were safe.

KAYE: It turns out they were anything but. Doctor Friedel ventilated the room as suggested but within a half-hour, something was very wrong.

FRIEDEL: By the time, I made it from my bedroom to the kitchen, I was on one knee I was so short of breath. I couldn't catch my breath.

KAYE: A hazardous chemical in Stand 'N Seal has severely damage 30 percent of Dr. Friedel's lungs. He was hospitalized in intensive care for four days with chemical pneumonia. He needed an oxygen tank for four months and still uses an inhaler. If only this, do-it- yourself had known when he brought Stand 'N Seal two years ago, that it had already been recalled by the Consumer Product Safety Commission. Did you have any idea when you bought this product that it had made dozen people sick and killed two people?

FRIEDEL: I had no knowledge whatsoever.

KAYE: Two people had died from this stuff yet it was still on store shelves. Keeping them honest, we tried to ask the Consumer Product Safety Commission, the very government agency designed to protect us from dangerous products, how this could happen. They refused to talk to us. Saying an on going investigation prevents them from discussing the issue. Imagine that. A public agency that can't talk to the public. Here is what we've been able to piece together through court documents.

Consumers started complaining to Stand 'N Seal's manufacturer Roanoke in May 2005. In an internal e-mail dated June 17th, the company's CEO wrote "For the last two months or so, we have been getting calls with problems related to the Stand 'N Seal and called the situation very serious." Still, Roanoke didn't tell the Safety Commission until June. At that point, the Safety Commission started an investigation but didn't recall Stand 'N Seal until the end of August, more than two months later.

DON MAYS, CONSUMERS UNION: The Consumer Product Safety Commission clearly dropped the ball on the case of the Stand 'N Seal case. They failed the unsafe product off the market.

KAYE: How was it, Stand 'N Seal remains in store shelves even though it had killed two people? Had the Consumer Product Safety Commission not done its homework? Why didn't they make sure the product was safe?

(END VIDEOTAPE)

HARRIS: So, how did the company continue to sell a dangerous product and what are the government watch dogs telling consumers now? More from Randi Kaye with those answers next.

(COMMERCIAL BREAK)

HARRIS: OK. Let's pick up our story now. The Consumer Product Safety Commission under fire. Here is the question. Can you really blame it for dangerous products staying on store shelves? Here is CNN's Randi Kaye.

(BEGIN VIDEOTAPE)

KAYE: Dr. Walter Friedel nearly died after using Stand 'N Seal spray on tile ground. Two others had died and the product had been recalled. Yet Dr. Friedel was still able to buy it. Why? After the recall in August 2005, records show the company that makes Stand 'N Seal, Roanoke, promised it had fixed the problem and the Consumer Product Safety Commission allowed Stand 'N Seal back on the market but did not ensure the new formula was safe. And saw Dr. Friedel bought the cans that made him sick two months after the recall.

FRIEDEL: If you look at the bottom of the cans, none of these numbers are on the recall list, so these were supposed to be safe cans.

KAYE: And they're still a threat. This recall notice on the Safety Commission's website only warns about cans bought before June of 2005. It has never been updated. We called the Commission to find out what it tells the public now about Stand 'N Seal.

CPSC HOTLINE OPERATOR: It is on the recall. It's from April 2005 through June 2005. If they're made after that and the date code is different, then it's fine.

KAYE: So, if I have a can from October 2005, that should be OK?

CPSC HOTLINE OPERATOR: Yes.

KAYE: Yes?

CPSC HOTLINE OPERATOR: Yes, Ma'am.

KAYE: Some have already discovered it's not fine. Others may still have Stand 'N Seal at home unaware that it could kill them.

KAYE: Do they simply not have the tools to go through these investigations?

MAYS: That's exactly right. The Consumer Product Safety Commission is woefully unfunded, understaffed safety agency.

KAYE: Mays says, the Safety Commission 400 employees are responsible for monitoring 15,000 products and just 15 inspectors oversee 300 ports. Just as bad. Its lab equipment is outdated. Yet, the commission's acting chairwoman told the house panel in September.

NANCY NORD, ACTING CHAIRWOMAN, CPSC: I think our recall process works very well.

KAYE: Home Depot pulled the product off the shelves this past March. The company refused an interview but has denied liability saying in a statement, that it removed the recalled cans and was not aware that problems continue. It adds, it never knowingly sold any of the recalled products. Dr. Friedel and nearly 200 other victims are suing Home Depot along with Stand 'N Seal manufacturer but not the Safety Commission even though Dr. Friedel blames it too. Would you say the Consumer Product Safety Commission failed you in this case?

FRIEDEL: They didn't fulfill their job, that's for sure.

KAYE: And considering the Safety Commission never updated its warning even after more people got sick, it still isn't doing its job.

(END VIDEOTAPE)

COLLINS: Good morning, everybody, I'm Heidi Collins.

HARRIS: And I'm Tony Harris. Taking you inform all day in the CNN NEWSROOM. Here's what's on the rundown.

Just in, presidential aid leaving. Karin Hughes calling it quits. We will tell you her next move.

COLLINS: Causing a crisis in the Caribbean. What could tropical storm Noel do along the U.S. coastline? Our meteorologist watching from South Florida and the severe weather center.

HARRIS: And buying candy from kids. No trick, just a treat for the troops. Happy Halloween, everyone. It's Wednesday, October 31st, and you are in the CNN NEWSROOM.

COLLINS: Breaking news to get through this hour. President Bush's long-time adviser Karen Hughes is leaving her post. She plans to quit her job as undersecretary of State at the end of the year. Hughes is on of President Bush's last remaining advisors from his close circle of Texas aids. She's been traveling the world, trying to improve the U.S. image abroad. She is now planning to return to Texas. She has quoted and saying improving the world's view of the United States is a "Long term challenge".

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