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McCain Addresses Economic Issues; Airline Strives to Finish Inspections, Return to Schedule; Bush Announces Changes to Troop Deployment; Authorities Allege Sexual Abuse on Polygamist Ranch
Aired April 10, 2008 - 13:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: Deputy -- mayor Rudy -- former deputy mayor, Rudy Washington, is here. And of course, the Turnbulls, who are the owners of this important establishment.
As they have shown, small business creates the majority of new jobs in America every year. So I thank them and all small business people for their ingenuity, performance, perseverance and hard work.
As we all know, for Americans, a good job is the best program for housing education, clothing, health care and transportation that's ever been devised. A strong, growing economy with good jobs is essential to everything we want in America. And we know, sadly, today our economy is weakening, and as I travel this country and meet and talk with people, I can see how things are getting a lot tougher for many, many Americans.
As I see it, individuals and families are feeling real pressure in four major areas. Housing prices are flat or declining, and Americans have lost their homes, are in danger of losing them. A credit crunch. Credit crunch is making personal loans, student loans, or business loans harder to get. Gas prices and food prices are threatening family budgets. And people are worried about their jobs.
I have a plan to get action into the American economy and get it back on track. My plan is comprised of two parts. First is a tangible, near-term plan to address and relieve some of the serious issues that Americans are facing right now. The second part of the plan is to create the right medium and long-term environment for our economy to rebound and thrive.
Let me just briefly discuss the short-term challenges and actions first. Recently, as we all know, a sustained period of rising home prices made many home lenders complacent, giving them a false sense of security and causing them to lower their lending standards. They stopped asking basic questions of their borrowers, like can you afford this home, can you put a reasonable amount of money down? Lenders ended up violating the basic rule of banking: don't lend money to people who can't pay it back.
Some Americans bought homes they couldn't afford, betting that rising prices would make it easier to refinance later at more affordable rates. There are 80 million family homes in America, and those homeowners are now facing the reality that the bubble has burst and prices go down as well as up. More generally, credit is drying up, and liquidity is now severely limited, and small business and hard-working families find themselves unable to get their usual loans. Business managers have become not only more cautious about hiring, but some have been reducing their work force. All of this has led to a discouraging jobs report last Friday.
As if this weren't enough, oil prices and, therefore, gas prices have been climbing for well over a year. For a long time, companies and businesses absorb those increases, but recently they have had to pass them on to consumers. The reason the price of milk, eggs and all kinds of goods are up so much is simply the increased cost of transporting these products to your store. Even the costs of product containers and cartons, often made from petroleum products, have been affected by the rising cost of oil and gas.
So what can we do in the near term? Let's start with the housing challenges. There's nothing more important than keeping alive the American dream to own your home, and priority No. 1 is to keep well- meaning, deserving homeowners, who are facing foreclosure, in their homes.
I'm pleased that the Congress is considering bipartisan reforms to help the mortgage crisis. Bipartisan efforts may not make for great political theater, but they remain the most effective way to address quickly our nation's problems. Bipartisan efforts are also sometimes less than perfect, and I believe we can improve on the legislation before Congress.
I've made my principles clear in this area: tax breaks for builders, funds to purchase homes in foreclosure, and tax credits that are not targeted to where the need is greatest do not constitute the federal help that's warranted.
In some cases, lenders and borrowers alike were caught up in the speculative frenzy that has harmed the housing market, and it's not the responsibility of the American public to spare them from the consequences of their own bad judgment. The goal should be to help homeowners who are struggling, and only about $5 billion of the present legislation addresses their concerns in any way. I believe we can do better.
We can encourage groups like NeighborWorks America, and others provide mortgage assistance to homeowners in their communities. And our government can give them the resources to expand their efforts.
I also believe that the mortgage-lending industry has an obligation to help refinance mortgages. If what I've read about industry-led efforts is true, it appears that a stronger, much stronger, effort could be launched.
I believe a robust, timely and targeted effort is my home plan. It offers every deserving American family or homeowner the opportunity to trade a burdensome mortgage for a manageable home that reflects the market value of their home. This plan is focused on people. People decide if they need help. People decide. They apply for assistance. And if approved, the government, under the home program, supports them in setting -- in getting a new mortgage that they can afford.
There will be qualifications which require the home to be a primary residence, and the borrower able to afford a new mortgage. We'll combine the power of government in the private sector, to find immediate solutions for deserving American homeowners.
My plan follows the sound economic principle that, when markets decline dramatically, debts must be restructured. It's built on the reality that homeowners should have an equity -- an equity capital stake in their own home. Homeowners would end up with a 30-year mortgage and an equity stake in their home. The new lender would receive a federal guarantee of the mortgage, and the taxpayer gets a benefit if the sale value ever recovers.
The result is a restructured financial arrangement for the homeowner. Over the long term, financial institutions must follow suit, writing off losses, restructuring their balance sheets and raising more capital.
I also call for an immediate Department of Justice task force to aggressively investigate potential criminal wrongdoing in the mortgage lending and securitization industry. If there were individuals or firms that defrauded innocent homeowners or forged loan application documents, then the punishment of the markets are not enough, and they must answer for their conduct in a court of law.
Now, let me turn for a moment to gas and food prices. We need to help everyone who relies on gas to commute or pick up the kids or get to doctors' appointments. As president, I promise to pursue a national energy strategy that won't be another grab bag of handouts and a full employment act for lobbyists.
It will promote the diversification and conservation of our energy resources, including, including a robust expansion of nuclear power that will, in sufficient time, break the dominance of oil in our transportation sector.
Right now, I think we should stop adding -- we should stop adding to the Strategic Petroleum Reserve. The SPR is intended to overset the impact of fiscal disruption of our oil supplies. But with oil at over $100 a barrel, an inadequate supply in the Strategic Petroleum Reserve, it's time to suspend purchases. This will lesson the worldwide demand for oil. And if the classic laws of supply and demand hold, we should see a welcome decrease in the price of oil.
And I ask every American to consider how you can sacrifice just a bit, for the common good, and cut back where you can, on your energy use.
Job security may be the most pressing problem of these challenging economic times. Right now, jobs are in jeopardy, and the government backstop is not up to the task.
For over a year, I've been calling for a comprehensive reform to our unemployment insurance and displaced worker programs. In our current unemployment insurance system, benefits are the same, regardless of whether a job is found quickly or slowly. There's no reward for work or getting to work quickly. Training programs are duplicative, balkanized and inefficient.
The Department of Labor alone has over a half dozen programs under different organizational umbrellas. I propose that we build a new system so that, as women and men work, their taxes help to build up a buffer account against lost earnings. Then, if they're unfortunate enough to lose a job, they will be able to better meet their obligations.
There will also be no need to weight for a bureaucrat or obey a timetable. Every day will count and give incentives to get back to work.
If new skills are needed, displaced workers should find quick assistance at a community college, using a flexible training account that permits them to pay for training and use some of that left over to keep their health insurance. They will be able to get the hands-on skills needed by employers in the area and move to a new job. And my plan contains special targeted assistance for older workers.
We also must make health care portable. Portable. The biggest fear that people have when they lose their job is losing their health insurance. I propose comprehensive reforms that will lead to innovative portable insurance, but we can start by making sure that workers are eligible for affordable coverage under COBRA. These short term...
GERRI WILLIS, CNN HOST: McCain talks about his plan, an activist plan, really, for many of the changes he wants in the economy. Many details on what he calls his home plan. Many details on what he calls his home plan, which would help people who are facing foreclosure.
He says, "This would be an opportunity for the government to help people remove burdensome mortgages and get into affordable loans." The government would help -- help them do that and stand behind those loans.
Also, very interesting here, he calls for a Department of Justice task force to investigate criminal wrongdoing in the securitization and mortgage-lending markets. He says what's happened in the marketplace itself, the punishment of the markets, isn't enough.
ALI VELSHI, CNN HOST: Not a lot of detail just yet, but he's coming out with a lot more over the next few days. A speech definitely designed to get away from "the economy isn't my thing." So we'll be hearing more from John McCain. He really touched on a lot of economic issues.
WILLIS: "ISSUE #1" will be back here tomorrow, 12 p.m. Eastern.
VELSHI: Time now for Don Lemon and Fredricka Whitfield. They've got your latest headlines in the CNN NEWSROOM.
DON LEMON, CNN ANCHOR: All right. Chad Myers warned you about it yesterday. Tornadoes, flooding rains, hail, even blizzards. We're watching a host of dangerous storms, from the Gulf Coast all the way to the Great Lakes.
FREDRICKA WHITFIELD, CNN ANCHOR: And they're moving east. Who's under the gun right now and who's next?
LEMON: Oh, yes. And what about this? What does it mean for air travelers? Right?
WHITFIELD: Another bad day.
LEMON: And so many problems. Already smarting from thousands of flight cancellations -- smarting is probably not a good word -- ticked off is the best way to say it. Frustrated, upset, mad...
WHITFIELD: All of that.
LEMON: ... because of all the cancellations and delays.
Hello, everyone. I'm Don Lemon, live in the CNN world headquarters here in Atlanta.
WHITFIELD: And I'm Fredricka Whitfield. You're in the CNN NEWSROOM.
All right. Let's get straight to Chad Myers in the weather center.
It is a bad mix out there. Isn't it?
(WEATHER REPORT)
WHITFIELD: Thanks for the warning, Chad -- Don.
LEMON: All right. You've got a ticket to fly. And you may or may not have an airplane. Hundreds more of them are being inspected today. Yesterday, it was, like, over a thousand, right? Well, there are hundreds more today. They're leaving a lot of flyers fed up and in limbo.
So what is it like inside one of the world's busiest airports? Our Susan Roesgen is at Chicago O'Hare.
It was Camp O'Hare last night to some people, I'm sure, Susan.
SUSAN ROESGEN, CNN CORRESPONDENT: you know, it absolutely was, but look at it today. This is the strange thing that we found today, Don: a pretty empty -- one of the world's busiest airports.
You got people standing around, not really doing much. They've got ticket counter operators, reservation agents ready to help, but not that many people there. We've got the janitorial services moving through. We've got people ready to give out orange juice, water and coffee, but there just aren't that many takers. The security line is practically dead. This is the strange thing here now.
The American Airlines spokeswoman for O'Hare says that she believes it's because most people got the word about the cancellations. This is now the third day in the row. And they just decided to rebook on their own from home or not to come in.
But the truth is, American Airlines doesn't have that many cancellations today. Out of the 900-plus airplanes that were grounded by American, only 123 flights were taken out of commission today.
Now, here's more from Mary Frances Fagan. She's the American Airlines spokeswoman here at Chicago's O'Hare, talking about why they decided to pull those MD-80s out of commission all at once because of an FAA order.
(BEGIN VIDEO CLIP)
MARY FRANCES FAGAN, SPOKESWOMAN, AMERICAN AIRLINES: So what we're doing is our mechanics, our quality assurance people, our engineers are carefully going through all of these aircraft to make sure the wiring is sheathed properly, the cords are tied property and then the appropriate amount of space between each cord and the clamps are in the right directions, and the nuts are -- washers and all of the stuff that needs to be done right, is done right.
And the FAA inspectors are coming in behind us and reviewing these airplanes before they go back into service. So we want to be in perfect compliance.
(END VIDEO CLIP)
ROESGEN: Now, of course everybody wants perfect compliance when you're talking about airline safety, but what the passengers have said to me today, Don, is why did American have to do this all at once? Why did they have to take all these planes out of commission all at once?
And what I heard from Mary Frances Fagan was, "Well, she we had to, because we didn't get enough warning from them. We had to do it immediately after those spot inspections this week."
But it was two weeks ago that the FAA had first notified American Airlines that its wiring in the wheel wells that could lead to a loss of hydraulic power in the landing gear or could cause some kind of fire, that the MD-80s were not in compliance two weeks. And then this week they started canceling.
The good news is -- for passengers anyway -- that they plan to have a complete schedule, back to normal, they say, on Saturday.
LEMON: All right. Susan Roesgen at O'Hare International Airport. Susan, thank you as always.
Are you fed up with flying? Are you fed up with flying? Would you like to hear -- we would like to hear about it, of course: your travel nightmares. You can send your stories straight to our IReport.com. Go to CNN.com, and you can see the i-Report logo. Just click on that.
We have some developing news, actually breaking news, to tell you about. It's a huge settlement in the Virginia Tech massacre just one week before the anniversary of the worst school shooting in American history.
Families have reached a settlement with the state of Virginia that is, according to the Associated Press, reportedly for $11 million. Lawyers representing 21 families in the case say the settlement is designed to avoid further lawsuits. But the lawyers would not discuss the terms until the final papers are drawn up.
We'll update you as we get more information on this developing story -- Fred.
WHITFIELD: And an indefinite halt in U.S. troop withdrawals from Iraq after July. That's the word today from President Bush, backing up the recommendation of his top on-the-scene military commander.
Let get straight to CNN White House correspondent, Elaine Quijano with more on that -- Elaine.
ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Well, Fredricka, as you mentioned, President Bush, as expected, did sign off on the recommendation of his top U.S. commander in Iraq, General David Petraeus, for what the White House calls a period of assessment come July before drawing down any further troop levels in Iraq.
And the president also announced combat tours for troops deploying to Iraq, starting in August, will be reduced from 15 months to 12 months. His decision essentially acknowledging the tremendous strain the Iraq war is having on U.S. troops and their families.
But if military personnel were looking for any clear guideposts as to how long the U.S. would remain in Iraq, they did not get them today.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: While this war is difficult, it is not endless. We expect that as conditions on the ground continue to improve they will permit us to continue the policy on return on success.
The day will come when Iraq is a capable partner of the United States. The day will come when Iraq is a stable democracy that helps fight our common enemies and promote our common interests in the Middle East.
(END VIDEO CLIP)
QUIJANO: Now critics argue that is essentially a non-answer that does little to shed any real light on the U.S. strategy going forward in Iraq. Democrats say, even with the congressional testimony this week of General Petraeus and the top U.S. diplomat in Iraq, Ambassador Ryan Crocker, the American people, they say, deserve more than just a vague explanation of a conditions-based approach to Iraq.
Here is House Speaker Nancy Pelosi reacting after the president's speech.
(BEGIN VIDEO CLIP)
REP. NANCY PELOSI (D-CA), SPEAKER OF THE HOUSE: We need better answers from the president. Certainly, he sent General Petraeus and Ambassador Crocker to the Congress. We respect them for their service to our country. But we need answers from the commander in chief.
(END VIDEO CLIP)
QUIJANO: Now, against the backdrop of election year politics, as well as concerns by Americans about the economy, President Bush today tried to address the costs of the war in Iraq, both in lives and in money. The president saying while costs may be high they pale in comparison to the cost of another attack against the United States. The president once more essentially trying to link the success in Iraq to security here in the United States.
Back to you.
WHITFIELD: All right. Elaine Quijano at the White House, thank you so much.
Meantime, stay with the NEWSROOM. In just a few minutes from now we'll hear directly from General Petraeus himself. He sat down for a comprehensive interview with CNN's Michael Ware. That was just a short time ago in Washington. We'll bring that to you.
LEMON: Meantime, we're going to talk about, Fred, cultural sensitivity. It could mean the difference between war and peace. We'll tell you why U.S. Army cadets are now visiting mosques as part of the new training regimen.
WHITFIELD: And in China, authorities say they've uncovered a terrorist plot against the summer Olympic Games. But some human rights activists aren't buying Beijing's claim.
(COMMERCIAL BREAK)
LEMON: All right. Just when you thought the story could not get any worse, it does. Disturbing new revelations are emerging after a weeklong police search of a polygamist compound in West Texas. Among other things, beds were found in the group's temple. Authorities believed male members of the group were using the beds to have sex with their underage wives immediately after their marriage ceremonies.
Right now, 416 children removed from the compound in last week's raid are still in protective custody. One hundred and thirty-nine women who left the compound voluntarily are being housed with the children.
And just a short time ago, authorities updated us on their investigation and on the 16-year-old girl who tipped them off, leading to the raid.
(BEGIN VIDEO CLIP)
SHERIFF DAVID DORAN, SCHLEICHER COUNTY, TEXAS: When you're dealing with a culture like this, they're taught from very young that they do not answer questions to the point, when you ask them like a dialogue between you and I. And we may very well have her, you know, at child protective services. All of that is certainly being sorted out right now. And the rangers, child protective services and everybody is diligently working on that to identify that person.
(END VIDEO CLIP)
LEMON: All right. So whatever you're doing now, look up at the screen. Take a good look at this picture. Police are still looking for Dale Evans Barlow. He's a 50-year-old registered sex offender. And Barlow is alleged to be the husband of the 16-year-old girl whose phone call tipped off authorities.
WHITFIELD: Our Ed Lavandera has been covering the story since it was all uncovered. This time he's in San Angelo. He joins us now on the phone.
So Ed, these are really grimacing [SIC] kind of details that we're hearing. What's the latest that you have?
ED LAVANDERA, CNN CORRESPONDENT: Well, Fredricka, you know, in these latest documents that officials here in West Texas have released, they lay out the details of what the sheriff here in Eldorado says that he had learned upon the beginning of this search, were that these beds that were inside the temple, on the top floor of the temple, and were allegedly being used by the adult members of the church to have sex with their underage brides. He said that they had learned those details as the raid was initially beginning. So that is in the last week. That raid started a week ago today.
And authorities are still saying that they're still searching for Dale Barlow, that if he had -- if he were in Texas at this point, he would have already been arrested.
It was really the first time we've actually had a chance to hear from the two main law enforcement authorities, officials that were spear-heading this search warrant. And also not only that, but these are the two men, the Texas Ranger and the sheriff here in Eldorado, that have really established this communication with the elder members of this polygamist sect here in Eldorado. And they described the scene over the last four years, essentially, as they've been the diplomats to this group.
Every time they've been on the compound, every time they had to announce their visit. They would come out and talk. And because of that, the members of the group would tell everybody inside the compound, which we now know is a number close to 700 people -- would hide. And so essentially, they only saw a handful of the members.
That's why they say they really had no idea until now of any kind of true evidence, even though they had inclinations that this kind of activity might be happening. But it wasn't until now that they had, they feel, the evidence that proves that this kind of sexual abuse was taking place. The Texas Ranger who was part of the spearheading effort in this search also described when they initially went in, what some of the members of this group were doing with the children.
(BEGIN VIDEO CLIP)
CAPT. BARRY CAVER, TEXAS RANGER: They were shuffled around houses as we were searching the houses. They were playing the -- kind of like the eggshell game. And we were trying to -- and we had issues with that.
(END VIDEO CLIP)
LAVANDERA: And, you know, Fredricka, another interesting thing is (AUDIO GAP) over the last couple of years, we've heard officials here talk about there being 250 people inside the compound. That was the number that they kind of believed would be -- kind of be the population inside this ranch. But as we've done the math, we now know that there were closer to 700 people.
The sheriff here in Eldorado says he's not terribly surprised by that. But that number -- that number, that population, when you think about it, is actually much bigger than most of the West Texas...
WHITFIELD: Well, it's interesting you said that, Ed. And it's just so hard to believe that this many people in this size compound could be carrying on in such secrecy for this long until being uncovered this weekend.
So, Ed, thanks so much for bringing us up to date. We'll be checking back with you throughout the afternoon here in the NEWSROOM.
LEMON: I have a feeling this story is only going to continue to grow, and even more disturbing details will come out.
He's the commander of all forces in Iraq. And today his boss, the commander in chief, announced major developments in the war. A conversation with General David Petraeus just ahead.
(COMMERCIAL BREAK)
LEMON: All right. We're working a couple things for you here today in the CNN NEWSROOM.
A series of severe storms today moving across the nation's heartland. The leading edge stretches from the Gulf Coast to the Great Lakes and is moving east.
A third day of frustration for American Airlines passengers. The nation's largest airline is canceling 900 more flights today as it continues to inspect wiring in hundreds of MD-80 jets. Let's not forget, yesterday was more than 1,000, and the day before that, 800. So, it's a mess.
President Bush has halted U.S. troop withdrawals from Iraq until further notice. He says he doesn't want to endanger the progress that's been made since the surge, what he calls the surge, began.
Plus, want to tell you about another developing story we have. A huge settlement in the Virginia Tech massacre, just one week before the anniversary of the worst school shooting in American history. Families reached that settlement with the state of Virginia for $11 million. Lawyers representing 21 families in the case say the settlement is designed to avoid further or future lawsuits. Lawyers would not discuss the terms until final papers are drawn up -- Fredricka?
WHITFIELD: Five years plus of fighting, but the war in Iraq is not endless. Those words today from President Bush speaking from the White House, where he also said there will be an indefinite halt in troop withdrawals after July.
CNN Baghdad correspondent Michael Ware joins us from Washington. He spoke today at length with the top U.S. commander in Iraq, General David Petraeus.
Good to see you, Michael.
MICHAEL WARE, CNN BAGHDAD CORRESPONDENT: Thanks, Fredricka.
Well, the president may say that the war is not endless, but I can certainly tell you, especially after speaking to the commander of that war, General David Petraeus, that the conflict still has a long way to go. General Petraeus, back in his two days of testimony here before Congress in Washington D.C., went to some pains to point out some of the grim realities of the war that remains.
We discussed the nature of his testimony and how that may have been perceived. The nature of Iraqi reconciliation and what that in fact may truly amount to or not. And we also discussed the nature of Iraqi politics, and that militias may just be a fact of life America has to live with.
But we also talked about the threats to America in this war. And while he acknowledged al Qaeda remained one of them, they are but one of many. And indeed he made it very clear that the larger dynamic of this war is increasingly becoming Iran, and it's clear that Iran has dug in a lot deeper in Iraq than perhaps many here in America would think.
(BEGIN VIDEO CLIP)
WARE: You touched on the issue of Iran. Let's have a quick look at that, then. Is the threat of Iran overblown?
GEN. DAVID PETRAEUS, CMDR., MULTI.NATL. FORCES-IRAQ: Well, it's a very significant one. Again, it depends on what perspective one approaches this. But clearly, Iran's level of involvement, and in many respects, malign involvement, is of genuine concern of all Iraqi leaders.
One minister put it very precisely during the visit with President Ahmadinejad, and fairly courageously I guess. He said, we welcome Iranian religious tourists, which they very much do. It has spurred the development of course of the holy cities of Najaf and Karbala enormously. A lot of money brought in with that. We welcome their goods and services. We welcome their investment money. We don't welcome their bombs. And that does capture it.
And I think the have seen their bombs, their rockets, their mortars, their EFPs, explosively formed penetrator projectiles in recent weeks in a way that they had not been so clear to them before. And, again, Iran is going to have to come to grips with its conflictions, between wanting to wish us ill and not wanting the first Shia-led Arab country fail.
(END VIDEO CLIP)
WARE: And well beyond bombs and mortars flying from Iran into Iraq to attack U.S. soldiers, the general also made it clear that the so-called ally or partner of America, the Iraqi government, is indeed made up of political parties, factions, and paramilitaries all of whom are linked to Iran. Some of them with long-standing associations with Tehran. Some of who were actually created in Iran.
So, he made it clear that it's going to take an extraordinary nearly comprehensive approach from America to protect and further U.S. interests in this war -- Fredricka.
WHITFIELD: And, Michael, we've seen General Petraeus time and again in Baghdad, while you're usually based there as well. Your conversation with him this time, did you feel this was the same General Petraeus that you've spoken with while in Baghdad, or is he more forthright or more guarded in one place or the other?
WARE: Well, obviously this is a higher supercharged politicized environment. Indeed, on the first day of testimony alone -- and let's remember, he was exposed to well over a dozen hours of grilling by members of Congress. But on that first day, he faced what is going to be the next president of the United States, one of the three candidates still in the running. So, of course, he has to be careful, he has to be measured.
But let's not make any bones about it, the general was not pulling any punches on the Hill or today. He was making it very clear. Put it this way -- I know for a fact that General Petraeus wishes he had a happy story to tell. He wishes that he could be letting America know that there was an end in sight and that troops could start coming home in a meaningful way.
But the fact is, he does not have that happy story to tell. And he needs that to sink in, both on the Hill, amongst the decision- makers, both within the campaigns that are currently under way, and by and large, among the American people. This war, as I said, is far from over -- Fredricka.
WHITFIELD: Right, nobody knows how it's going to end or if it's going to end. Michael Ware, thanks so much for joining us from Washington. We'll expect to see and hear more of that conversation throughout the day. And watch the full interview tonight at 10:00 Eastern. That will be during "ANDERSON COOPER 360."
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: What better way to understand someone than by going and living with them and being with them and experiencing their culture.
(END VIDEO CLIP)
LEMON: It's awareness, appreciation and mutual respect: West Point cadets learning about Islam by doing.
(COMMERCIAL BREAK)
LEMON: Republican John McCain is appearing at a business roundtable in Brooklyn, New York at this hour. But the big news, the person who is there to introduce him. Recognize that guy to the right? It's New York Mayor Michael Bloomberg. Does that mean Bloomberg is endorsing McCain for president? Not necessarily. Bloomberg introduced a speech by Barack Obama just two weeks ago and he also talked recently with Hillary Clinton.
WHITFIELD: All right, more from John McCain today in our political ticker, the presumptive Republican presidential nominee appeared on ABC's "The View" this morning. He says if he were president today, he would boycott the opening ceremonies of the Beijing Olympics.
(BEGIN VIDEO CLIP)
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: Unless they change something pretty quickly, I would not go to the opening ceremonies. And Barbara, you can't have a nation that's the world's super power, in many respects, behave like this, that -- in an oppressive and brutal fashion.
(END VIDEO CLIP)
WHITFIELD: All right, McCain accused China of conducting a brutal crackdown on Tibet. He called on Chinese leaders to begin conversations with the Dalai Lama.
So, there's 12 days left until the Pennsylvania presidential primary. Barack Obama may be closing the gap with Hillary Clinton. The latest CNN Poll of Polls shows Obama just four points behind Clinton. Earlier this week, a Poll of Polls gave Clinton a six-point lead.
And as a British subject, Elton John can't vote in the U.S. presidential election, but he found an even better way to boost his favorite candidate. The pop icon, as you see there, gave a benefit concert in New York last night that raised $2.5 million for Hillary Clinton's campaign. Sir Elton says there is no one more qualified to lead America.
All the latest campaign news is available right at your fingertips. Just go to CNNpolitics.com. We also have analysis from the best political team on television. That and more at CNNpolitics.com.
LEMON: Soon-to-be army officers are getting an education that is not available inside any West Point classroom. It's an immersive (ph) introduction to culture and faith that cadets can see and touch and they can taste it as well.
CNN's Richard Roth has more.
(BEGIN VIDEOTAPE)
RICHARD ROTH, CNN SENIOR U.N. CORRESPONDENT (voice-over): Prayers at a New Jersey mosque. And among those at the service, the U.S. Army, thirty cadets from the West Point Academy, some soon to serve overseas. This is part after military course called Winning the Peace, getting to know cultures and religions the army will come face- to-face with in less tranquil environments.
UNIDENTIFIED FEMALE: Why do we cover? Why do Muslim women cover?
MAJ. REBECCA PATTERSON, U.S. ARMY: The Jersey City experience is the first time that they can take what they've read in books and heard from speakers and really conceptualize it in a real-life situation, in a place where there are immense diversities in culture, and religion and ethnicity.
ROTH: Jersey City has a large Muslim population. The cadets tour several of city's multiethnic areas.
AHMED SHEDEED, ISLAMIC CENTER OF JERSEY CITY: We actually know that these cadets, they are going to some of the Islamic countries, and they want to know something about the mosque, how to respect the mosque, how to live in the mosque, what people do in a mosque.
ROTH: No matter the location, an army marches on its stomach. In this case Pakistani cuisine. The Army mess hall not missed.
UNIDENTIFIED MALE: This is a lot more delicious, I've got to say.
ROTH: And a rare opportunity to discuss issues they may soon have to confront.
UNIDENTIFIED MALE: In our training, we are taught that if you see a man -- like, most of the time, like, the suicide bombers, like, driving cars, are shaved, cleanly shaved men. And, like, is there a significance?
ROTH: Immersion is key to this trip, which means shoes are removed and head covering required for female cadets.
This is not a day trip. The cadets spend two nights sleeping in the mosque. AARON OWEN, WEST POINT CADET: What better way to understand someone than by going and living with them and being with them, and experiencing their culture.
ROTH: If they want to, the cadets can participate in the services.
BEN HAAS, WEST POINT CADET: In the future when I may be a platoon leader in Iraq or Afghanistan, then, you know, I think I'll have an enhanced ability to relate to people in the community, religious leaders, and leaders in general. And you need that trust in order to get things done.
ROTH: The kind of trust the Army and the Muslim community believe encounters like this promote.
Richard Roth, CNN, New York.
(END VIDEOTAPE)
WHITFIELD: All right, well, you're probably familiar with this scenario, your child's hurt and you rush to the emergency room. But is that the right place to go? Medical correspondent Elizabeth Cohen answers that in the NEWSROOM.
LEMON: All right, you see there, there's the radar. Severe weather sweeping across some parts of the country. We're talking tornado watches and warnings and there's Chad Myers in the severe weather center checking it all out for us. He's going to update us.
You're watching CNN, the most trusted name in news.
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LEMON: All right, well, if you're a parent, you can pretty much bet that you'll be taking your child to the emergency room at some point. We hope that doesn't happen, but at some point, you'll probably have to. Many times, though, parents end up at the wrong ER.
And that's what medical correspondent Elizabeth Cohen focuses on in this week's "Empowered Patient."
Elizabeth, how do you know what's the best emergency room for children? By the way, I never thought -- I'm not a parent. So, I never thought about it. I thought every emergency room had -- is equipped to handle almost (ph) everyone?
ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: No, not all of them are equipped to handle kids. And this is something that a family I talked to found out the hard way.
Take a look at Jillian Branham (ph). Here she is, she's such a cutie pie. When she was nine-month-old, she had an asthma attack. And her parents took her to the closest ER. They thought that was the best thing to do. And she need a nebulizer, which has a mask that delivers the medicine. And the only mask they had was for an adult. Can you imagine, a nine-month-old with an adult mask.
When they went to go take her blood pressure, they only had adult-sized blood pressure cuffs. It doesn't really work very well on a baby. So, her mother got smart and she went to the Internet and she figured out -- there is actually a site you can go to that will tell you which hospital in your area is certified to handle pediatric emergency cases.
Now, if you have a children's hospital in your area, that's a no- brainer. But most people don't have that luxury.
LEMON: OK, so then, it doesn't end there. You're not done. Once you figure out which ER, I'm sure you have to figure out how do I get the best care from the ER I picked.
COHEN: Right, exactly. And there are things that parents can do to make the ER visit better, in short, to help the doctors and nurses help your child.
So, when you're in the ER, you should have a medication list already printed out and done. There's one on the Internet where you can fill in the blanks, fold it up, put it in your wallet. And we give you a link to that. Also, if your child has a health problem, you need to carry a health history around with you. Again, we give you a link to a site that will allow you to do that, especially for children.
And so, this is very important stuff because when you get to the ER with your kid, it can become mayhem pretty quickly. And you're emotionally charged. So, you want to make sure that you have all this written out beforehand.
LEMON: OK, and most of those, and I know this -- uncle here -- kids swallow things and that's usually why they end up in the ER. Do you have any advice there?
COHEN: Yes, something that actually, I think a lot of parents don't think about, which is that if your child just swallowed some liquid they weren't supposed to swallow. Grab that bottle and bring it with you. It's very, very important because that way, they can see exactly what your kid swallowed.
So, for this tip and for many others, including a list of things your child shouldn't be swallowing, you can go to CNN.com/health and you'll see it right there, our "Empowered Patient," ways to help the emergency room help your child.
And I'll tell you, choosing the right emergency room is the crucial first step.
LEMON: Good advice.
COHEN: And we can help you do that.
LEMON: Yes, thank you.
COHEN: Thank you.
WHITFIELD: I'm taking copious notes.
LEMON: I saw you over there.
WHITFIELD: (INAUDIBLE)
(LAUGHTER)
WHITFIELD: All right, well, Congress tackles the mortgage crisis, huge problem. Will it make any difference? Personal finance editor Gerri Willis will tell us what homeowners can do to help themselves.
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WHITFIELD: A quick look at the numbers right there. The Dow up just over a hundred points. Our Stephanie Elam will be joining us from the New York Stock Exchange with a little bit more on your money news.
Meantime, let's talk about what's taking place on Capitol Hill involving your money, Washington's latest response to the mortgage crisis. The Senate has just endorsed a series of tax breaks for businesses and homeowners. The bipartisan plan passed today with an overwhelming 84-12 vote, but it still faces opposition in the House and from President Bush. That raises the question: what can embattled homeowners do right now to help themselves?
Let's bring in CNN's personal finance editor Gerri Willis. Her book is "Home Rich, Increasing the Value of the Biggest Investment of Your Life." Great tips in there. Meantime, let's give it ...
WILLIS: Hey, Fred.
WHITFIELD: Hey, how are you?
WILLIS: Very good.
WHITFIELD: How about some other tips on what people can do right now as they wait for Capitol Hill to intervene? What can you do if you are quite a few payments behind and you stand to potentially lose your home?
WILLIS: Well, if you're quite a few payments behind or even if you think you're going to be in trouble, you should tell your lender. You have to be proactive here. Call your lender's loss mitigation department. Talk to your servicer if your loan has been sold.
What you want to do is write a letter of hardship, your own letter of hardship. What went wrong, why you're having troubles. Provide proof, if you've been laid off, you have to let them understand, show them proof of the problem. Also, ask for a loan modification. Now, this will change the terms of your loan slightly. Allow you to pay maybe your arrears later, over time, extend the length of your loan. And you know, the reality, Fred, here is that a lot of people -- well, they really can't describe their problems themselves to their bank. They have a hard time communicating.
WHITFIELD: Yes.
WILLIS: But this is a very emotional time. If you are in that situation, get a housing counselor. Call Hope Now, 888-995-hope. You can also call HUD directly or go to their Web site, hud.gov. And a great place to go, the National Foundation for Credit Counseling. You see their number there, 866-557-2227.
It's critical, though, that you get somebody in there who's actually advocating for you.
WHITFIELD: Yes.
WILLIS: These counselors, Fred, they know these companies. They often have contacts there. They know what they'll accept, they know what they won't accept.
WHITFIELD: Yes.
WILLIS: So, it really helps you negotiate.
WHITFIELD: Oh, that's good, that's really helpful because there are so many folks who have questions, but they don't really know how to formulate those questions. And not really clear what questions, which area in which to go in their discussion. So, that gives them some great options.
Meantime, so then, there's the flipside of that.
WILLIS: Right.
WILLIS: When do you know it's just too late? You've given it all you can, it's time to just simply get out of the house.
WILLIS: You know, Fred, I've been all over the country on this story and in living rooms, in kitchens, people are telling me that they have debt that is 50 percent or maybe even more of their monthly gross salary. That's just not workable. You know, you can't maintain a family budget if you're raising a family if you're spending half your money on housing.
So, you have to know when to fold. OK, so if you're in that situation, it's time to sell your house. Maybe you're going to have a hard time in your market finding a buyer to pay what you owe. Maybe you can get your bank to do a short sale. That's a great alternative. That's where the seller pays less than what you owe, but the bank agrees to the deficit.
Now, the big thing I want to tell people here, don't just walk away because if you walk away from your home, and if the price that they get at auction on your house doesn't satisfy your debt, you're still on the hook. They could come after you at any time. So, make sure that you don't just walk away, there are better options. Even jingle mail where you send your keys into the bank, that's better than walking away -- Fred.
WHITFIELD: That's why you're the author of "Home Rich." That was valuable, invaluable. Gerri Willis, thank you so much.
WILLIS: My pleasure, thank you.
WHITFIELD: All right, the economy, it is issue No. 1 and we'll bring you all the latest financial news this week noon Eastern. It's information that you need on the mortgage meltdown, the credit crunch and much more. "ISSUE #1" 12:00 p.m. Eastern.
LEMON: Well, one week after the raid on a polygamous sect Texas compound, we'll tell you what we're learning about the group and what happened during the raid -- new information.
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