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Autopsy Inconclusive for Heath Ledger; Stocks Continue to Slip; Presidential Candidates Still Busy Campaigning
Aired January 23, 2008 - 13:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: Fear of the worst leads to more of the bad on Wall Street. We're going to run the numbers and see how's Washington coming up with that stimulus package.
DON LEMON, CNN ANCHOR: Supply and demand is the law of the land in Gaza. Today Gazans take that law into their own hands, stocking up on the basics in Egypt.
Hello, everyone. I'm Don Lemon live at the CNN world headquarters in Atlanta.
PHILLIPS: And I'm Kyra Phillips. You're live in the CNN NEWSROOM.
LEMON: Adored by fans, respected by peers, mourned by all. Actor Heath Ledger dead at 28, and we still don't know how. Right now the investigation goes on. The reaction pours in.
Our Allan Chernoff is outside Ledger's New York apartment, and Brooke Anderson is at the Sundance Film Festival with reaction for us.
Prescription drugs were found in Ledger's apartment, but we don't know whether they had anything do with his death. In any case, the White House has postponed a scheduled appearance by President Bush promoting anti-drug campaigns. Now, they say they don't want to appear opportunistic in highlighting that issue.
Let's get straight to the latest on Ledger now, the investigation from Allan Chernoff. He is in Manhattan where the sidewalk outside Ledger's home is now a makeshift memorial -- Allan.
ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: Yes, it is, Don.
First, let's get to the headline here, because the New York medical examiner's office this morning did conduct an autopsy, and it was inconclusive. Now the medical examiner's office said they will have to conduct toxicology studies and also tissue analysis. They say the results of that may not be known for two weeks. So it really could be a while. Right now the mystery continues, and it will go on for some time. We know that for sure.
Yesterday afternoon, the police did arrive here, and they did find the Australian actor face-down by his bedside. He was naked, and they say they did comb the entire apartment. They found drugs, but they were prescription drugs under Heath Ledger's name. He had the prescriptions for them, and they did include some sleeping pills, as well as anti-anxiety pills.
The police have speculated that this might have been an accidental drug overdose. We do not know that for sure. The medical examiner has to give that sort of confirmation.
He was -- attempted to be awoken by his housekeeper. She tried at 3:00 p.m. He had a massage appointment. And of course, he was unresponsive.
It really has been devastating for people in Hollywood, people here in Soho. You see the makeshift memorial right here. And let's just take a look at some of the notes. Half of these were left overnight. We were here since early this morning.
And I'll just read one of these notes. And this is from an Australian with an Australian flag. And it does say, "It's a sad day when someone so talented and so young dies way before their time. Heath, you'll be sadly missed."
Many of the notes very similar to that one. So really, this has touched so many people here, and it is incredible. People who didn't know this movie star at all, but they were touched very much in their heart. And they are all now grieving together.
Don, back to you.
LEMON: You can see people at that makeshift memorial right behind you. Allan Chernoff, thank you so much for that report.
PHILLIPS: Ledger had movie star looks and the acting chops to back them up. Not even 30, he already had an impressive resume, an Oscar nomination, and the respect of his fellow actors. Brooke Anderson talked to some of them at the Sundance Festival in Utah.
Hey, Brooke.
BROOKE ANDERSON, CNN ENTERTAINMENT CORRESPONDENT: Hey, there, Kyra.
He was well respected, even revered by some of his fellow actors. And many of his Hollywood friends are opening up here at the Sundance Film Festival about their sadness.
Listen to this.
(BEGIN VIDEO CLIP)
PATRICIA CLARKSON, ACTRESS: I just saw him, and I'm not there. And he -- he was a very, very gifted young man. Incredibly talented.
STANLEY TUCCI, ACTOR: He was a captivating person. The performance in "Brokeback Mountain" was beautiful. But every time you saw that guy on screen, you just wanted to watch him. And -- and it's sad. Well, it's just sad that he's gone. Too young. Too young.
(END VIDEO CLIP) ANDERSON: His ex-fiance, Michelle Williams, actually had a film here at the Sundance Film Festival, premiered here on Sunday, called "Incendiary." She did not attend the festival, though.
Some actors here at Sundance are reluctant to talk about Heath Ledger. They're so struck by his death and so saddened. His former girlfriend and co-star Naomi Watts was scheduled to do an interview with us today about her Sundance film, called "Fun and Games." She has canceled all the press that she was scheduled to do. And that is understandable.
We also recently just got a statement from Geoffrey Rush. He co- starred with Heath Ledger in the 2003 movie "Ned Kelly." He says, quote, "This is a sad event. I admired Heath enormously. He was a sensitive and committed and daring actor. This is truly a tragedy. I send my condolences to his family."
And Kyra, we have just received an outpouring of kind words from fans, from fellow stars and friends, not only about Heath the actor but Heath the person.
PHILLIPS: All right, Brooke Anderson, we'll follow the story throughout the day and, of course, the investigation into how he died.
Heath Ledger's death and his life, we're covering both from all angles. In just a few minutes, Michael Hundgen from the celebrity Web site TMZ.com will join us right here in the NEWSROOM.
LEMON: Now on to the economy. It is a question heard all over the world today: can anybody -- anybody -- keep America out of a recession?
One day after the Federal Reserve slashed a key interest rate, Treasury Secretary Henry Paulson met with congressional leaders this morning to hammer out a stimulus package. Asian investors appear somewhat optimistic. Investors in Europe and America do not, however.
Let's begin our coverage with CNN's Susan Lisovicz. She's on the floor of the New York Stock Exchange.
How are things looking there today, Susan?
SUSAN LISOVICZ, CNN CORRESPONDENT: Not looking good. I think traders here at the New York Stock Exchange are no longer drinking Red Bull, they're drinking Red Bear.
We did have enough tough open. There was an attempted rally and stocks sink further. Right now the blue chips -- check it out -- down 236 points, but at their lows, reached in the last half our, so we were down more than 300 points.
And the NASDAQ is even worse. Right now, it's down 74 points or about three percent. And earlier today the NASDAQ, the best performing of the three major averages last year, is now in a bear market, falling more than 20 percent from its cyclical high reached just last October. And the Russell 2000 -- that's an index of small caps. We don't mention it often. We told you that earlier this month it had already fallen into a bear market, and the Dow and the S&P are getting closer. They're about 17 and 18 percent off of their highs.
What's going on today? Well, Apple, a darling on Wall Street, reported its quarterly earnings after the bell. Very strong. But its guidance for this quarter, tepid, below most analyst estimates. Its shares are getting pounded, Don, down about 18 percent or $20.
Also, Merrill Lynch -- talking about the housing sector. Haven't we heard enough bad news from there? Merrill Lynch saying today home prices will decline another 15 percent this year, another 10 percent next year. It says the inventory situation -- in other words, the glut of unsold homes -- has become intractable, in its words. It says that home prices are still historically high. They need to come down, and they will come down.
Merrill Lynch's chief economist, by the way, earlier this month said, "According to our analysis, this isn't even a forecast any more. It's a present-day recession." And it's talking about the overall economy.
Fear of a recession still plaguing Wall Street, and the three major averages, broadly lower once again. We've got three hours more to go in this session.
Don, back to you.
LEMON: Oh, boy, Susan Lisovicz, you're going to be a busy woman today.
LISOVICZ: But Don, you know what? I'm coming back later this hour, and I'm going to tell you some stocks that are bucking the trend.
LEMON: Really!
LISOVICZ: Yes.
LEMON: OK. Well, that's -- at least there's some light at the end of the tunnel when it comes to that.
LISOVICZ: Yes.
LEMON: We'll look forward to that, Susan Lisovicz. Thank you very much.
LISOVICZ: You're welcome.
LEMON: And we'll be keeping an eye on economic developments and the stock market all day long here on CNN.
We'll also be checking with CNN personal finance editor Gerri Willis to see whether now -- whether now is the time to refinance your mortgage. That is a good question when it comes to today's economy. Stick with CNN for all the news that affects your financial security. And go to CNNmoney.com for more on money, jobs and the mortgage crisis.
PHILLIPS: Different states, different strategies, all with the same goal. The presidential hopefuls in both parties are covering a lot of ground today.
Barack Obama and John Edwards are in South Carolina, focused on Saturday's contest there. Hillary Clinton has moved north. Today, she's in Pennsylvania and New Jersey.
And Florida is center stage for Republicans. Candidates Huckabee, McCain, Giuliani and Romney are all there gearing up for next Tuesday's Republican primary.
Republican presidential hopeful Mike Huckabee is tightening his finances, and that means that his top advisers are now working for free. Chief adviser Ed Rollins said that he and several other top aides have agreed to forego their paychecks to save campaign cash.
Huckabee's not the first candidate to take this step. As we've reported, Rudy Giuliani's top staffers started working without salaries earlier this month. Giuliani is pouring all of his resources into winning the Florida primary.
New aftershocks from Hillary Clinton's debate reference to a former Barack Obama donor who's now facing corruption charges. Clinton mentioned Anton -- or Anton "Tony" Rezko in Monday night's CNN debate.
Rezko goes on trial next month.
Today on CBS, Obama once again distanced himself from it Rezko, saying that Rezko supported a lot of Illinois political candidates, not just him.
Obama has given to charity some $40,000 in contributions linked to Rezko and its associates.
And Democrat John Edwards has taken lot of grief for his perfect hair, not to mention that $400 hair caught. And last night David Letterman couldn't resist a chance to get his hands on the best hair in politics.
(BEGIN VIDEO CLIP)
DAVID LETTERMAN, HOST, CBS'S "LATE SHOW WITH DAVID LETTERMAN": Could I just mess your hair up a little bit?
JOHN EDWARDS (D), PRESIDENTIAL CANDIDATE: You want to?
LETTERMAN: Do you mind.
EDWARDS: I don't mind.
LETTERMAN: Has it ever been messed up? No, no.
(END VIDEO CLIP)
PHILLIPS: It does look better. Edwards's New York visit didn't last long. He's already back in South Carolina with three campaign stops scheduled across the state.
Well, don't miss big showdowns in the Wild, Wild West. Later this month, the candidates will face off in California, the last debates before Super Tuesday. That's January 30 and 31. You can see them only on CNN, your home for politics.
LEMON: This story came as shock to everyone. A young Hollywood star found dead. So far a lot more questions than answers in this. Michael Hundgen of TMZ.com stops by to talk about the death of Heath Ledger.
PHILLIPS: And a border blown apart. Thousands of people cross into Egypt from Gaza after the walls came crashing down. Our Ben Wedeman will join us live.
You're in the CNN NEWSROOM.
(COMMERCIAL BREAK)
PHILLIPS: One-fourteen Eastern Time. Here are some of the stories we're working on in the CNN NEWSROOM.
More tests are planned on the body of Heath Ledger after initial autopsy results proved inconclusive today. The 28-year-old actor was found lying by his bed in his Manhattan apartment yesterday. Prescription drugs were also found, including sleeping pills, but we don't know yet if they had anything to do with Ledger's death.
Another day, another drop. Live pictures of the big board on Wall Street, where stocks plunged for a second day amid fears of a recession. Adding to the misery, weak sales forecast from big-name companies like Apple.
And where is she and what happened to her? We still don't know. Police in Reno, Nevada, have questioned a man in Brianna Denison's disappearance, but they say he's not a suspect. The 19-year-old college student was last seen Sunday. Police say she was sleeping on a friend's couch near an unlocked door after a night of partying.
LEMON: All right. We're going to get some new information now as it concerns the death of Heath Ledger. He was full of talent, brimming with potential and now dead at the age of 28.
Actor Heath Ledger leaves millions of stunned and saddened fans, peers, family and friends. And no end to all of the questions.
Let's bring in now Michael Hundgen from the celebrity Web site TMZ.com.
And I want to know that you guys did break this story. The first note I got from someone was from TMZ. And I understand, Michael, that you're getting new information from the New York City Police Department on this case?
MICHAEL HUNDGEN, TMZ.COM: That's right, Don. We just got confirmation from the New York City Police Department saying there was a $20 in his apartment building that was rolled up, and there was a powdery substance on it. They're testing it right now to find out what that substance was.
Also, CBS in New York is also reporting that drug packets were found in the apartment. Those details are coming in as we speak.
LEMON: Yes. I didn't want to say that -- to that. I mean, this information is coming from TMZ and also, as you said, from CBS.
As I said, you were the first to break this story when it comes. And everyone says they're stunned. And I hate to -- to just keep harping on this, but this really came as a shock to everyone within the celebrity and acting circles and even outside, because he was the last person you would think this would happen to.
HUNDGEN: Absolutely, Don. I mean, when this came out yesterday and they said it in the news room, everybody was shocked. I mean, jaws just dropped, because they couldn't believe Heath Ledger, this guy who was just at the beginning of what was going to be certainly a successful career. He already had an Academy Award nomination. He was well on his way to do great things.
It's just shocking and sad that this came to an end so quickly.
LEMON: OK. Let's talk about the last couple months before his death. He was in a big film, obviously "Batman," which is coming out. Played the Joker. That apparently was a very tough role, by all accounts, that I've heard for him to play. And he may have suffered -- I don't know -- some sort of psychosis from that or -- I'm not a doctor. And also, he had broken up with his girlfriend, who was the mother of his child.
HUNDGEN: Right. Michelle Williams, they were together for a while. They were engaged to be married, and they broke up last year during the summer.
And yes, this movie, "The Dark Knight," this new Batman sequel that's coming out, apparently was a very difficult role for him to play. There were interviews that said he would stay up all night. He would only get an hour or two of sleep, and that was after taking two Ambien.
So just unbelievable how much of a toll this took on him. And that could have led to what we see here today.
LEMON: And you know, it's not unusual for someone -- and we have to say that, Michael. It's not unusual for someone to take Ambien or to have -- to have prescription sleeping pills. Many people have problems sleeping. So it is legal, and we're not sure about that. But again, if you can go back through all of the circumstances and the details surrounding this. Again you have this new information. Also the way he was found dead and the circumstances there.
HUNDGEN: Sure. I mean, what -- what it's coming to now is that they've ruled out that this was foul play. They've ruled out things close to suicide.
What we're thinking now is that it was an accidental death that was a combination of things. And we know that he had pneumonia over the weekend, and he had just flown back from England where he was shooting another movie.
So the combination of whatever drugs he was taking for the pneumonia, perhaps the sleeping pills and now whatever this powdery substance was could have been the killer. I mean, we're not sure how...
LEMON: How do you know about the -- how do you know about the pneumonia?
HUNDGEN: TMZ confirmed it yesterday. And he was just coming back from London where he was shooting again. And so they had confirmed that, and they diagnosed some kind of prescription drug. That's what we're trying to find out, what drug he was taking to cure that.
LEMON: OK. So again, new father, apparently a very good father here. Any other new information that you have for us here when it comes to -- what are we going to be seeing tonight? Because we know that the autopsy, preliminary autopsy results, are in, inconclusive. Learning any details about that?
HUNDGEN: Well, what we're going to find out, and what we're looking towards in the next ten days is really the toxicology report, because that will give us exactly what caused this death.
What they're saying about the autopsy is right: it is inconclusive. And I think what we're going to find out in the next day or two -- or by tonight is what -- what that powdery substance was and how that played a factor into this tragic news.
LEMON: Yes. OK. Very sad. And you know, even though it's been some 18, 17 hours now since we found out about this, it's still hard to believe such a young person with everything ahead of him.
HUNDGEN: Right.
LEMON: OK, Michael Hundgen, we appreciate it. We'll be watching TMZ tonight to get any more information. Will you please come back on and share it with us?
HUNDGEN: Thank you, Don. I will.
LEMON: All right. And for a look back at Heath Ledger's life, check out CNN.com's special report. Share your thoughts on the actor, and you can send or view I-Reports from across the world. All that at CNN.com.
PHILLIPS: Interest rates are down. Is this a good time to refinance your mortgage? We're going to ask personal finance editor Gerri Willis.
(COMMERCIAL BREAK)
PHILLIPS: We're been talking about it all morning. The sell-off on Wall Street has taken a turn for the worse now. But Susan Lisovicz can always find a silver lining for us somewhere within all of that.
Hey, Susan.
LISOVICZ: Hey, Kyra. Well, I'm looking hard for you. But first of all, I've got to set the stage, because we're having another tough sell-off. And the declines are so great, actually, at this point that the NASDAQ is now in bear territory. That is, the common definition of a bear market is a 20 percent or more decline from its most recent highs.
The NASDAQ reached its cyclical highs on Halloween. That's ominous. And is now down about 22 percent from that high.
Well, we're seeing a broad-based rally, as well. A broad-based decline, I should say, as well. More fears about whether the economy is in a recession, going into recession or how long it will be in a recession.
And we have Apple shares which are taking a pounding. Apple shares were up about 130 percent last year. Down 20 percent this year, and down about 18 percent today. Not on bad news, but the fact that its guidance for this quarter is conservative.
And this is a company that has had blockbuster results with its products like iPod, iPhone, its new cool laptops, that kind of thing. And so it just sort of reinforces the fear that's out there.
Merrill Lynch adding fuel to the fire by forecasting bigger declines in the housing market. A 15 percent to 30 percent drop in home prices over the next two to three years. It says home prices are still too high and that there's just a glut of inventory out there. And so they are going to come down further. So more pain in that already-battered sector, Kyra.
PHILLIPS: All right. But you said there are some bright spots out there?
LISOVICZ: There are some bright spots out there, Kyra. And one of them is Starbucks. We've been talking a lot about Starbucks and about the competitors. Recently, we were talking about how McDonald's was going to start hiring baristas and really getting into that really profitable niche of high-end coffees. Well, Starbucks now is going to be selling coffees at about $1 a cup. It's testing this. That is confirmation from the company. And free refills. No coincidence? We don't know.
But you know, that's fuel for us. What about fuel for your car? Well, oil prices are coming down sharply. Right now, about $87 a barrel, about $2 down lower just today.
Why is that? Well, not such good news there. The fear of a recession. If there is a recession or a steep downturn, we'll be -- the thinking is that we'll just have less of a demand for oil.
One other area, a bright spot, financial stocks. They have been so beaten down. Bear Stearns upgraded that sector today, saying lower interest rates will benefit them because, theoretically, consumers and companies will spend more. And all those massive cash infusions from foreign investors should put them on sturdier ground. That is the thinking at Bear Stearns.
So we're seeing some very nice rallies. JPMorgan shares are up 5 percent; Citigroup up 3 percent. They're both Dow 30 stocks. But Dow is still under pressure because most of its stocks are to the down side -- Kyra.
PHILLIPS: All right, we'll keep following it, obviously, with you there from the floor of New York Stock Exchange. Susan Lisovicz, thank you.
LISOVICZ: You're welcome.
LEMON: Desperate and determined. Thousands of Palestinians break down the border to Egypt, literally. Are they welcome? Well, yes and no. We'll find out what their neighbor's going to do about it.
(COMMERCIAL BREAK)
LEMON: Another bad day on Wall Street. A weak earnings report from Apple is adding to fears of a possible recession. The Dow Jones Industrial average is down -- well, 194 points right now -- 192. Treasury Secretary, Henry Paulson, met with congressional leaders this morning to hammer out an economic stimulus package. Who is to blame for this mess? Well, not us, says Congress. Senate Democratic leader, Harry Reid, blames the former chairman of the Federal Reserve.
(BEGIN VIDEO CLIP)
SEN. HARRY REID (D), MAJORITY LEADER: Alan Greenspan, had he been not attending so many of his cocktail parties, should have been focusing on the fact that the subprime crisis was coming upon us. It was here, and no one alerted Congress to that effect. So I don't think the criticism should be directed toward us.
(END VIDEO CLIP)
LEMON: Well, just today the Congressional Budget Office warns the weakening economy will increase the federal deficit. It predicts a 2008 deficit of $250 billion, not counting the eventual cost of an economic stimulus.
After months of bad news for people making mortgage payments, there's finally some good news. Interest rates are down, which suggests this may be a good time to refinance. So let's see what's in. And personal finance editor, Ms. Gerri Willis -- has to say about that. She joins us from New York.
Gerri, first question, what are the options now for homeowners? Do they have any options?
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Well, I got to tell you Don, a few mortgage brokers I spoke with late yesterday told me they are being inundated with phone calls from people trying to refinance. Now, the good news is mortgage rates are really low and going lower because of what you said the Fed was doing. And with more rates coming possibly next week, they may fall even lower.
A 30-year fixed mortgage right now is going for just about 5.3 percent. Those numbers from Bankrate. A fixed jumbo loan for about 6.4 percent. But don't forget, a refi is not free. It typically costs one to two percent of the value of your home, Don.
LEMON: All right. Don't forget that. All right, let me ask you this, so to make refinancing worth while, how much of a rate decrease should you look for there?
WILLIS: Well, you're looking for a gap between what your rate is right now and what you can get in the marketplace of half a percent to a full percentage point. I've got to tell you, this is not as easy as you may think to get this new loan. You've got to have at least 20 percent equity in your home. Used to be you had to have ten percent. They're asking for more now because, as you know, the banks are under assault, having lots of problems with the credit crunch.
Now again, you used to have to have a credit score, for example, of over 660. That was considered excellent. Now you will need a credit score of 720 to be even considered for a prime loan. One broker even told me that before the credit crunch, eight in ten potential customers who walked in the door for a refi would get it. Now the numbers are like three in ten, because these lending standards are so much more restrictive. So, we have great rates out there, but it's more difficult to get the loans.
LEMON: And if -- maybe if they had been a little bit more restrictive before we may not have find ourselves --
WILLIS: Exactly. Too late for that.
LEMON: We can't think of everything to ask you, Gerri. And I know you have wisdom when it comes to this. What else -- is there anything else that consumers, especially people refinancing or in a mortgage crisis or find themselves in the mortgage crisis, anything they should keep in mind? WILLIS: Well, if you are refinancing, remember a lot of folks had run in to lower home prices. Maybe you are in a marketplace, maybe you're on one of the coasts where prices have gone down and gone down dramatically. You may find it impossible to refinance because the value of your home is down. It's gone down with this problem in the real estate market. You may find it impossible to ReFi.
And, I know this is really frustrating out there. But you won't know until you investigate. So it is really worth looking into, because a lot of people are stuck in those really high-rate, adjustable rate mortgages where the interest rate has reset and now they are paying so much more for their mortgage each and every month. Think about a new mortgage. It is time to do it, the rates are down. It is expensive, it's not inexpensive, but it is worth checking out.
LEMON: Yes. Getting any sleep lately, Gerri? Because I see you on "AMERICAN MORNING," I see you on "LARRY KING," I see you on "Headline News," I see you on CNN...
WILLIS: Well, it is a big story.
LEMON: And then you're working this weekend as well.
WILLIS: It is a big story. Yes, you've got to join us for "OPEN HOUSE."
LEMON: Of course.
WILLIS: We're going to have great stuff on "OPEN HOUSE."
LEMON: Of course, you're right, it is a big story and we appreciate all of your advice, Gerri Willis.
WILLIS: Thank you.
LEMON: Get much, much more financial advise from Gerri Willis every weekend on CNN. Join her for "OPEN HOUSE" at 9:30 a.m. Eastern on Saturday. And you can also catch "OPEN HOUSE" on CNN "Headline News" at 3:30 p.m. Eastern, both on Saturday and Sunday.
PHILLIPS: Thousands and thousands of people, mostly Palestinians, mostly on foot, walking into Egypt from Gaza. They're trying to get food, gas to cook with, medicine, things that are gone or dwindling in Gaza since it was essentially sealed off months ago. It is putting the government of Egypt in a tricky spot. Let's bring in CNN's Ben Wedeman in Gaza. He's right there in the middle of it for the latest.
Ben, what can you tell us?
BEN WEDEMAN, CNN INTERNATIONAL CORRESPONDENT: Yes, Kyra, there were really dramatic scenes down on the border between Gaza and Egypt where we saw, really, tens of thousands of people, as many, according to the United Nations, as 350,000 people crossing the border from Gaza into Egypt. And coming back with just about everything you can imagine, with food, livestock, cigarettes, fuel, medicine. I saw just about everything but the kitchen sink passing over that border today.
Some people just getting out of Gaza because many Gazans will tell you this place is a prison and this was a rare opportunity for them to go out and go to somewhere different, get away from the pressure cooker that is Gaza. And so, it was really scenes of pandemonium, but really celebration on the border.
But there are concerns, Kyra. The Israeli government is worried that with the border essentially open to one and all, that anything and anyone can now get into Gaza. They've been concerned for quite some time about the smuggling of weapons from Egypt into Gaza through tunnels. Now those tunnels are no longer necessary, all you have to do is walk across the border.
And I went back and forth several times during the day. No one checked my passport. No one even asked me a question. So it is a lot more free down there, but it comes with risks -- Kyra?
PHILLIPS: So what does this mean for Israel's efforts to squeeze Hamas and also end the rocket fire that's been going on right there into Israel?
WEDEMAN: Well, it means that that effort is going to be seriously undermined. It is now very easy for anyone to get anything into Gaza, and the expectation is that there may be things coming in that will be used in that rocket fire against Israel.
Now the Israelis are fairly unhappy about what has happened. They've told the Egyptian government that it must stick to its international obligations regarding the maintenance of security on the border with Gaza. But the Egyptian government says, look, we had this humanitarian crisis brewing on our border, and we had to open it up. And that is what has happened. So this isn't the end of the story, Kyra.
PHILLIPS: We'll keep following it, too. Ben Wedeman, thanks.
And look at these amazing pictures snapped by a CNN i-Reporter, Patrick Friedel. He is a grad student living in Cairo and he took these pictures from his balcony. This is far from Gaza, but they're still feeling the heat from what's happening on the border. Egyptian people marching in support of the Palestinian people making their desperate way into Egypt from Gaza.
And it wasn't all good will and peaceful protests in Cairo, though. Patrick, our i-Reporter says that this picture shows Egyptian police and some demonstrators clashing today during that march. No word on arrests, injuries or other casualties.
We want you to i-Report for us, too. Submit your news photos or video to cnn.com/ireport.
LEMON: It is one of the last photos taken before that horrific crash that killed Britain's, Princess Diana in Paris. Today the only survivor of that crash took the stand in London's high court. Trevor Reese, used to be Trevor Reese-Jones, remember that? He was Diana's bodyguard that night.
He says he remembers nothing about the accident and he testified that even though he received anonymous phone calls and letters after the accident threatening him to keep quiet, he is no way part of a cover-up, as alleged by the father of Diana's companion, Dodi Fayed. Reese is testifying at the official inquest in Diana's death.
PHILLIPS: A possible surgical answer for the weighty and costly problem of diabetes. We're going to get details from medical correspondent, Elizabeth Cohen.
(COMMERCIAL BREAK)
PHILLIPS: An Australian study has given more weight to the idea that obesity surgery can be a cure for type 2 diabetes. Medical correspondent Elizabeth Cohen here with all the details.
Interesting.
ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: It is interesting.
PHILLIPS: Everything that they keep coming forward with, yes.
COHEN: I know, because usually when you think of diabetes, you think treat it with medicine, change your diet. We're talking about type 2 diabetes, the kind that people get as an adult. But this study says maybe gastric bypass surgery is the answer for diabetes.
Let's take a look at the results that they got in this study which is being published in the "Journal of the American Medical Association" this week. When diabetics were told just to do diet and exercise, they had a 14 percent complete remission, in other words, 14 percent of those folks had a complete remission of their diabetes. That's OK, but not great. However, the folks who had gastric bypass surgery, they did the surgery, followed them for two years and 73 percent of them had a complete remission.
Now, this has surprised a lot of doctors and has sort of made them think, you know, usually we think of surgery as a last resort, maybe in the case of diabetics, we should be thinking of it sooner rather than later.
PHILLIPS: Well, surgery like this, I mean, that's pretty extreme. Why not medicine or ...
COHEN: It is extreme, it is extreme. It's so much more extreme than just taking Glucophage or changing your diet. Let's talk about some of the ramifications of gastric bypass surgery and why every doctor's not going to recommend this for every diabetic.
There is one death for every 200 to 300 gastric bypass surgeries. That's not nothing. That is one for every 200 to 300. Also, another risk when you have gastric bypass surgery is blood clots. Also, leaking at the staple line -- the line where they suture you back together. And also nausea, vomiting and dizziness. So, this is not a procedure that should be taken lightly. But then again, diabetes shouldn't be taken lightly either. So, it's really kind of weighing the two bad things that can happen to you, basically.
PHILLIPS: How does the surgery actually take place?
COHEN: The surgery can be done in two different ways. In this study, they looked at surgery that was done via a Lap-Band, which is a very specific piece of apparatus. And what it does, it just goes in there and cinches the stomach, it makes it smaller so you feel full faster. Your stomach literally cannot hold as much food as it used to. And so, people tend not to eat as much as they used to. It's not foolproof, but of course, it has worked for many, many people.
PHILLIPS: Well, we'll follow the new developments. Thanks, Elizabeth.
COHEN: Thanks.
LEMON: Well, and as we tell the kids -- the kiddies, it only hurts for a minute and you can keep you healthier for years. So, why aren't more grown-ups rolling up their sleeves for shots? A CDC report finds a small percentage of adults are taking advantage of new vaccines for shingles, whooping cough and HPV, which is the Human Papilloma Virus. Even old-school shots for flu, pneumonia and tetanus are underutilized. CDC docs say we've got to get past the shots or kids' stuff mentality.
And for more details on the diabetes study and the rest of your health news, head over to CNN.com/health.
PHILLIPS: Well, if it's not storming where you are, it soon could be. Chad Myers is in the weather center keeping his eye on quite a few storm systems.
CHAD MYERS, AMS METEOROLOGIST: Yes.
PHILLIPS: Hey, Chad.
MYERS: Yes, quite a few. Good afternoon, Kyra. Good morning, if you're in the west.
(WEATHER REPORT)
LEMON: Well, it must have looked like free money. We'll show you what some bank robbery suspects did with the loot, with police right on their tail. Check that out.
(COMMERCIAL BREAK)
(NEWSBREAK)
LEMON: OK, you have to watch this next story. Just the video alone is crazy. They took the money and they ran. But they didn't get very far. Suspects in a Los Angeles bank robbery were chased down by police after they started throwing loot from the getaway car in a mad dash for the cash from onlookers.
Here's reporter Mary Beth McDade (ph) of CNN affiliate KCAL.
(BEGIN VIDEOTAPE)
MARY BETH MCDADE, KCAL REPORTER (voice-over): From Orange County freeways to Crenshaw district surface streets, five suspected bank robbers in a black SUV led police on a crazy high-speed pursuit. At one point they tried to get rid of the money they allegedly stole from a Costa Mesa bank. Authorities say three were involved in the actual heist, while two manned the getaway car.
LAURA EIMELLER, FBI: Three male black men entered the bank with weapons, at least one of them was armed, forced the customers of the bank into the vault, made the customers get down on the floor, and proceeded to rob the bank.
MCDADE: A few blocks after our choppers spotted them tossing the loot out the window, they crashed into a tree near the Baldwin Hills Plaza mall. After impact all of them fled the car. However, two were arrested right away. Here's one of them being bumped by a police car, and then arrested as he tried to make a run for it. As for the cash left in the street, this man says he was almost run over on his way to work as people tried to scoop it up.
PAUL THEARD, WITNESS: I saw the chase happening and I saw the aftermath of people screeching to a halt to go and pick up this cash that they left behind. So much so that one of the cars almost kind of ran over me, and then next thing you know, there was people picking up cash like it was popcorn.
(END VIDEOTAPE)
LEMON: Mary Beth McDade of KCAL. I mean, no such thing as a free ride. That just shows to go you, as they say. No word on how much money was taken. So they don't know.
And something new from our friends at CNN.com and TruTV. They've teamed up to bring you the best crime coverage on the web. Go behind the police state and into the courtroom like never before, CNN.com/crime.
PHILLIPS: His recipe for surviving four days and nights trapped in the Canadian wilderness -- dirt, a rotting animal carcass and a whistle.
LEMON: It's a different kind of class reunion when a student and her teacher reconnect after 35 years. We'll educate you on this sweetheart of a story. I just wanted to see them -- aww. Very nice.
(COMMERCIAL BREAK)
LEMON: Well, forget man versus wild -- 55-year-old Ken Hildebrand has an incredible survivor story. On January 8th in the Canadian wilderness, he became trapped and nearly unable to move under his ATV in near-zero temperatures. That's when he says survival skills -- survival mode kicked in allowing him to eat dirt and rotten beaver meat. Four days later, a hiker found him.
(BEGIN VIDEO CLIP)
KEN HILDEBRAND, SURVIVED 96 HOURS PINNED UNDER ATV: He said, are you OK? And I says, not really. I need some help. And he said, what can I do? Can you lift this bike off of me? I said I got a first aid kit in there. And I've been laying underneath this bike for exactly 96 hours.
I teach wilderness for students, survival and stuff. I knew what I was up against. I had everything I needed, but I just couldn't get to it. That was the biggest problem.
(END VIDEO CLIP)
LEMON: Hildebrand says he was constantly blowing the whistle to keep a pack of hungry coyotes from attacking him. Hildebrand is recovering, but may end up having to have a foot amputated.
PHILLIPS: Right now, we are monitoring the numbers there on Wall Street, Dow industrials down 124 points. This has been our top story for the past about two weeks following the numbers as the president has been meeting in desperation, trying to figure out how to put together a stimulus package with his economic advisers as we've seen the numbers tank.
Now, we're being told once again that the topic at the U.S. Conference of Mayors was indeed that of the economy. Susan Lisovicz, obviously has been giving us live reports from the New York Stock Exchange following the numbers for us. About 250 mayors are meeting this week to discuss a number of issues facing cities across the country. A big part of that, the economy.
Here's the president.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I often say being mayor is a lot tougher than being president. I don't have to fill the potholes and empty the garbage. But I thank you for serving our country. We've got mayors from both political parties here. We didn't have a political discussion; we had a discussion on what's best for America, particularly given the economic uncertainty we face.
I talked to them about my desire to work with Congress to get a stimulus package passed, one that's going to be robust enough to affect the economy, simple enough for people to understand and efficient enough to have an impact. And I'm confident that we can get something done.
There is a spirit that is -- that says we need to take a fundamentally strong economy and help it to deal with the uncertainly with a pro-growth package. One way we can also send a message that we want to continue to grow is to open up markets for U.S. products and services. We're talking about these trade votes that are coming up in front of Congress, and the importance of getting markets opened up for our workers and entrepreneurs. These trade agreements that we're about to vote on, they're goods coming from their countries coming to our countries relatively tariff- free. Our good and services going to their country with a tariff on them. In other words, they're not treating us the way we're treating them.
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