Return to Transcripts main page

CNN Newsroom

Texas Compound Case Takes Turn for the Uncertain; California Budget Woes; Rent to Prosper in Housing Downturn

Aired April 13, 2008 - 18:00   ET

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

(BEGIN VIDEOTAPE)
FREDRICKA WHITFIELD, CNN ANCHOR (voice-over): The police raided it. We saw hundreds of kids removed. Tonight, the first look inside that polygamist ranch compound in Texas.

They say it was a joke. Police officers dressed up in Ku Klux Klan outfits. Are you laughing?

Less, much less. That's what's in store for people in California under the governor's new budget.

STEVEN LEVY, ECONOMIST: We're out of Tooth Fairy solutions. This is the year Californians are going to have to make a choice.

WHITFIELD: Fewer teachers. Fewer hospitals. Less of everything. We look at a state in crisis.

Your bill at the gas pump keeps heading north. We'll introduce you to a Web site that aims to help you beat the high prices.

Gas prices, mortgage crisis, dare we say, recession? We're going to answer your questions about what you should do in these dangerous financial times.

You're in the CNN NEWSROOM.

(END VIDEOTAPE)

WHITFIELD: Good evening, everyone. I'm Fredricka Whitfield.

We start this hour with our first look inside the so-called polygamist ranch in Eldorado, Texas. These new pictures into CNN. Take a look. We know this woman simply as Monica. She says Texas officials will not let her see her children. They were taken from the Texas ranch last week with more than 400 other children.

Police say they removed them for their own safety. And now this development, a convicted sex offender questioned, but not arrested. To CNN's David Mattingly in Eldorado, Texas -- David.

DAVID MATTINGLY, CNN CORRESPONDENT: Fredricka, everyone's wondering where this case might be going right now. This all part of the original case that sent authorities to this ranch and got this huge investigation going. They went and spoke to a man named Dale Barlow up in Colorado City, Arizona. He was once believed to be the husband and abuser of this 16- year-old girl who claims that she was being abused and sexually abused by her husband here at the compound.

But Barlow has earlier said that he did not know this girl. Texas Rangers went up and talked to him and his attorney who say that he was not even in Texas at the time that this was supposed to be going on. So that case appears to going nowhere at this point.

In fact, state officials say they cannot locate Sarah. All this time, they've been saying that they were hopeful that she was among those 416 children that they removed from this ranch. But at this point, they have not identified her.

They are holding out hope that perhaps she is in that group, somehow afraid or unwilling now to come forward and identify herself. So that original case at the moment appears to be stalled. That does not appear to have any effect, however on the 416 cases that are in custody right now. They are headed to court on Thursday, where a judge is going to decide if each of these children need to remain in state custody.

This is going to be a huge undertaking, because each and every one of these 416 kids is supposed to have his or her own lawyer, own representation, as they go before a judge. No one's really estimating with any hard numbers about when this is all going to be wrapped up.

Some have joked, saying they may need to hold this in a stadium, there is going to be so many children, so many lawyers and so many people there to watch this happen. So, they have got the rest of this week to figure out how they are going to carry that out for the 416 kids that are in custody right now.

So, still, a lot of questions, even though we're now, Fredricka, 10 days since authorities went into this ranch behind me.

WHITFIELD: And David, you have been outside the gates of this compound all day. We've been looking all day at some of the images taken inside the compound. So, explain what kind of activity has been taking place.

MATTINGLY: Well, can you pretty much see behind me how little is going on. We are at the gate that goes with a long dirt road toward the temple and toward the compound there. What you see right now is pretty much what we've been seeing very much all day long, very few people coming and going. That gate is locked.

Someone pulls up, they have to unlock the gate. But no one willing to talk when they do that. So, what you see is what we've been seeing pretty much all day long.

WHITFIELD: All right. That one at least newspaper got access to be able to relay some of those images of the kind of activity inside. David Mattingly, outside the compound there in Eldorado, Texas, thank you so much. Meantime, onto other news. It's a new higher casualty toll today announced by Iran's government. That's after an explosion inside a packed mosque. A video camera captured the moment of the blast. Just take a look and listen.

(VIDEO OF EXPLOSION)

WHITFIELD: The explosion shook the mosque, and as we're told today, killed 12 people. More than 200 others were wounded. First thought to have been a bomb, police in the city of Shiraz now believe some live munitions were being handled improperly there. About 1,000 people, including children, were inside the mosque at the time, about 400 miles south of Tehran.

Well, the White House does not want him there, but former President Jimmy Carter has arrived in the Middle East. Carter intends to meet with leaders of Hamas, the group that violently took control of Gaza last year. He will probably meet with the exiled Hamas leader in Syria, and at least one Israeli official in Jerusalem. Carter says he's not a mediator, not a negotiator, but he's in the Middle East as a promoter of peace.

(BEGIN VIDEO CLIP)

JIMMY CARTER, 39TH PRESIDENT OF THE UNITED STATES: It's very important that at least someone meet with the Hamas leaders to express their views, to ascertain what flexibility they have to try to induce them to stop all attacks against innocent civilians in Israel and to cooperate with Fatah as a group that unites the Palestinians, maybe to get them to agree to a cease-fire.

Things of this kind. But I might add very quickly that I'm not going as a mediator or a negotiator. This is a mission that we take as part of an overall Carter Center project to promote peace in the region.

(END VIDEO CLIP)

WHITFIELD: The U.S. government considers Hamas a terrorist organization and therefore holds no official talks. Carter will also visit with West Bank, Egypt, Saudi Arabia and Jordan. You're looking at ABC, because that's where Jimmy Carter was speaking earlier today.

(WEATHER REPORT)

WHITFIELD: Well, we have a breaking story we want to bring to you, this taking place out of Orlando. We understand, and see the new pictures right now thanks to our affiliate WESH, WESH television in Orlando, Florida. You are seeing the police presence there because there has been a reported shooting that took place at a Wet 'n Wild water park.

And we understand that there are two gunshot victims. We don't know exactly what precipitated this shooting at what is supposed to be a fun amusement park that a lot of people converge on. You're looking at some of the new images that we're getting in. Unable to really discern all of the activity that you're seeing in the pictures for you, but we're going to sort out a lot of the details for you, as we learn more information, coming out of Orlando, Florida.

So that is the ongoing investigation, under way right now at the Universal Studios Wet 'n Wild park there in Orlando, a shooting taking place. At least two gunshot victims. And, of course, you see there, a lot of startled people as to what took place at a place that's supposed to be just fun.

All right. Californians, get ready to tighten your purse strings. A proposed budget cut could mean more lost jobs. We'll hear how some are dealing with the latest money crunch.

And he's here to help you, and improve your living conditions. Financial expert Clyde Anderson joins us to help solve some of the latest housing problems.

And the bitter battle continues. We'll have the latest on the war of words between the Democratic rivals.

(COMMERCIAL BREAK)

WHITFIELD: All right. California is the latest to feel the sting of a struggling economy. And as CNN's Kara Finnstrom reports, almost everyone there can expect to feel the pain.

(BEGIN VIDEOTAPE)

: Who is the sheriff who runs the jail?

KARA FINNSTROM, CNN CORRESPONDENT (voice-over): English teacher Ginny Zeppa fears what next fall could bring for these students and for herself.

GINNY ZEPPA, ENGLISH TEACHER: I feel like I'm good at what I do. And I care about what I'm doing a lot.

FINNSTROM: She's one of 14,000 teachers across the state who got notices in the mail, telling them they could lose their jobs.

GOV. ARNOLD SCHWARZENEGGER (R), CALIFORNIA: Right now, under my budget proposal, a lot of people are hurting because of the cuts that I have to make. I can only go and promise the people $96 billion worth of programs because that's all the money that we have.

FINNSTROM: If the legislature approves his plan, that would mean a roughly 10 percent spending cut, not just for schools, but essentially across the board. The California Budget Project, a nonprofit, nonpartisan research group, says the reductions will touch virtually every California family.

They could include eliminating child care help for 200,000 children with low-income working mothers. Cutting state payments to doctors and hospitals for Medicaid patients. Closing 48 state parks and beaches. And forcing the early release of 22,000 prison inmates. JEAN ROSS, CALIFORNIA BUDGET PROJECT: The magnitude of California's current shortfall is the direct result of the downturn in the economy.

FINNSTROM (on camera): California is not only getting fewer tax dollars because of the housing downturn, but because Californians are making and spending less money. Economists say there is no easy solution.

LEVY: We've already borrowed about $8 million to cut the budget shortfall from $16 billion to the $8 billion that remains. We are out of Tooth Fairy solutions. This is the year Californians are going to have to make a choice.

FINNSTROM (voice-over): The campaigning for what that choice will be, now in full swing. Governor Arnold Schwarzenegger says whatever choices are made now, California needs change the way it budgets to avoid this pressure again.

SCHWARZENEGGER: We would have enough revenues if we would have a budget system that we put the rainy day fund aside, as cities do, like you just heard, and the counties. The state hasn't done that and this is what is irresponsible.

FINNSTROM: Ginny Zeppa doesn't know how to start preparing for the possibility of big change.

ZEPPA: It's not just like switching a piece in a machine. It's not the same. It's people who understand what these students need, and it doesn't just happen that you come in a classroom and you know how to be a good teacher for those students. It takes time.

FINNSTROM: For Zeppa and others across California, it will be a long summer of waiting for lawmakers to decide their fate.

Kara Finnstrom for CNN, Los Angeles.

(END VIDEOTAPE)

WHITFIELD: So when it comes to the economy, California and across the nation, for that matter, the struggling housing industry continues to be a major issue. The market is moving at a crawl. Everyone knows that by now. But could this be a opportune time for renters or perhaps even those who own some of those rental properties? Joining me tonight, Clyde Anderson, mortgage consultant and finance expert.

Good to see you, Clyde.

CLYDE ANDERSON, FINANCE EXPERT AUTHOR: Good to be here.

WHITFIELD: Well, you know about the mortgage crisis. Everyone knows that the number of foreclosures, the numbers are through the roof, so to speak. Folks are losing out on their homes. But they have got to live somewhere. So that means they want to rent.

ANDERSON: Right.

WHITFIELD: But then you have got to qualify for rent. So let's try and paint the picture of what that scene is like right now. If you own property, you want to rent out. What do you need to know to try to attract, perhaps, a lot of the folks who are out of their homes?

ANDERSON: Really, it's almost similar to when you are purchasing a home. It's location, location, location. Where your property is located is a huge piece of it. What condition is your property in? Because now you are competing against so many other people that have their properties on the market as well that want to rent them out.

And so you've got a lot of competition out there. There's a lot of standing inventory for rentals.

WHITFIELD: And you have to assess what is a reasonable price, because obviously if a lot of people are out of their homes, their credit is bad, they're behind on their payments, they're not going to be able to afford a lot for rent, either.

ANDERSON: Right, right, that's true. And you really have to look at what the market bears in your area, where the house is located. I mean, the market is only going to bear so much. So a lot of times, you're running into a situation where people are trying to cover their mortgage payments, first and foremost, and really, they still have to stay within those confines of what the highest amount they can charge for rent.

And keeping in mind that people are strapped right now. And so, you want to have somebody in there. So it is truly a challenge when you are looking at that.

WHITFIELD: So, is it a good time for the renters?

ANDERSON: I think it is a good time for renters. It's a lot of inventory, again, so, it's a big competition. But if you are renting a property, it should be very easy to find a property. I mean, the ball is in your court, you know, in that respects. Just like the market, it's a buyer's market as far as purchasing as well when you're out there looking for a property to rent.

WHITFIELD: Because the price might be low because the market value, everything has less...

ANDERSON: It has kind of dropped a little bit. So you still may find some good deals, depending on where you are looking.

WHITFIELD: Now what about for developers? You know, shifting gears a little bit, because everywhere you drive these days, no matter what city, especially if you are in a big city, you're seeing new homes going up. And you're wondering, well, who is going to buy these homes if you have got all of these foreclosures and people, you know, their credit is bad.

ANDERSON: Right, right. A lot of developers are sitting on inventory right now. The condo market is at a high, when people started making these condos, or developing these neighborhoods, and they couldn't turn back at that point. So they have already started building, they're developing them. So they are there. So that's why buyers are getting such a great deal when they're going into these communities because developers need to move them quickly.

WHITFIELD: So some of these developers are going to get a break from this proposed FHA program. But overall, is this going to help a lot of folks who are in trouble or really just a narrow few?

ANDERSON: My take is it is going to help some people. It's going to be hard to help all the people, because you are going to have situations where people are now challenged credit-wise. They've gotten into this situation, they are late on their mortgage. A lot of times, you know, it takes your credit score down 100, 200 points by being late on the mortgage.

WHITFIELD: You can't be more than three months behind, apparently.

ANDERSON: Yes. Exactly. And so, when you come into that situation, it's not going to help you. It's going to help the people that are proactive. They take some initiative, and say, OK, let me call, let me not be ashamed of my situation, and let me go and move forward and try to get some help now.

WHITFIELD: It is a tough situation. And a lot of folks need a lot of help. And we've got you for the whole hour to help out folks, so Clyde is going to be sticking around to answer some of your questions. You need to e-mail him at weekends@cnn.com. We will read some of the e-mails and Clyde will answer them all this hour. Thanks, Clyde.

ANDERSON: Thank you.

WHITFIELD: All right. Where do the presidential hopefuls stand on values and faith? Democrats Barack Obama and Hillary Clinton will answer some deep, thought-provoking and personal questions tonight, right here on CNN. We'll have a preview of "THE COMPASSION FORUM."

And they say it was just a joke. But no one is laughing at these photos of some Ohio state troopers.

(COMMERCIAL BREAK)

WHITFIELD: Well, initially it began over the word bitter. Now, that's exactly what the latest feud between Barack Obama and Hillary Clinton has become. A fallout over comments Obama made about America's working class voters who, in his words, "cling to guns or religion."

He has since recanted the remarks, but just within the last few hours, former President Bill Clinton weighed in at a campaign stop on behalf of his wife in Pennsylvania.

(BEGIN VIDEO CLIP) BILL CLINTON, 42ND PRESIDENT OF THE UNITED STATES: I just want you to know the people you're about to see are not bitter. They are proud.

(CHEERING AND APPLAUSE)

(END VIDEO CLIP)

(AUDIO GAP)

WHITFIELD: ... Jim, where you are, have you had a chance to gauge the voters, to find out what was their interpretation of the use of the word bitter.

JIM ACOSTA, CNN CORRESPONDENT: Well, Fredricka, both of the Democratic candidates are not in Indiana today, they are back in Pennsylvania after a raucous day on the campaign trail here in the Hoosier state yesterday. But we talked to several voters, and many of them still had the issues on their mind.

Now, obviously, that's not a scientific poll. There are probably plenty of voters out there who are paying attention to this controversy, but Hillary Clinton is looking to get back in the driver's seat in this campaign, and she's out to make Barack Obama pay for those comments, referring to blue collar workers in Pennsylvania as bitter.

In campaign stops across Indiana yesterday and in Scranton, Pennsylvania, today, Hillary Clinton slammed Obama as elitist.

(BEGIN VIDEO CLIP)

SEN. HILLARY CLINTON (D-NY), PRESIDENTIAL CANDIDATE: Well, I think what's important about this is that Senator Obama has not owned up to what he said and taken accountability for it.

You know, first he said he was right, and attacked me for raising his remarks, and referencing them, then he admitted he may have said what he said inartfully and now he has deeply apologized if he has offended anyone.

But what people are looking for is an explanation, you know, what does he really believe? How does he see the people here in this neighborhood, throughout Pennsylvania, Indiana, North Carolina, other places in our country?

And, I think that's what people are looking for, some explanation. And he has simply not provided one.

(END VIDEO CLIP)

ACOSTA: And Hillary Clinton was visiting Scranton, Pennsylvania, to bolster her blue collar credentials, talking about her family background and her upbringing there in northeastern Pennsylvania.

But we should note on the same day that Hillary Clinton made those comments, The Scranton Times-Tribune, the local newspaper there in Scranton, endorsed Barack Obama. And as for Barack Obama, he's expected to have his first chance on camera to talk about this controversy on tonight's COMPASSION FORUM, which is coming up shortly right here on CNN -- Fredricka.

WHITFIELD: All right. Jim Acosta, thank you so much. And so, in this election, dominated by the war in Iraq, the economy, the Democratic candidates indeed will turn their attention tonight to issues perhaps closer to your heart: religion, faith, human rights.

Senators Hillary Clinton and Barack Obama, as Jim was mentioning, are set to take part in THE COMPASSION FORUM. It starts in less than two hours from now at Messiah College in Grantham, Pennsylvania. And our own Candy Crowley, part of the best political team on television, is covering the event.

Candy Crowley, what exactly can we expect, a lot more candor?

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT: Well, you know, it will be interesting to see. I think you are going to see the remarks that Barack Obama made come up, simply because they deal with empathy, with compassion, how you feel about other people.

But I think you'll also see some global issues here. China and Tibet, how you deal with human rights violations, as a president, as a leader. So, I think it is about faith, it is about values, but it's not just about their faith and their values, but how America's faith and values fit into the larger political scene.

So, I think you will see some of that. Both of them will be talking about it, but separately. It's a forum, first comes Hillary Clinton, then comes Barack Obama. I think they will be talking about their faith, certainly, and for Barack Obama, this has been a campaign trail theme, as you know.

There have been lots of e-mails generated over the past year-and- a-half about Barack Obama, questioning his religion. It's something that he has had to address on the campaign trail, and will have an opportunity obviously to do so again tonight.

Hillary Clinton has famously talked about her faith and how it got her through her husband's infidelity, and how she turned to God. So we have heard some of this before but this will be a more extensive forum here for them to discuss that, but also discuss world issues that deal with U.S. values, and how the U.S. government should approach those issues.

WHITFIELD: So, Candy, it certainly sounds like it is going to be very deeply personal, as well. And just looking at the lineup of folks behind you, is it believed this is going to be a full house, that people in that area are particularly interested to hear them talk about these issues, even though the Republican candidate is not here, who we understand was invited to attend, but declined, but instead it's going to be these two Democrats?

CROWLEY: Absolutely. And this is Messiah College, so obviously there is a campus interest in this, but there is a local interest in this and in fact, statewide. I mean, religion, Americans are by and large very religious people. They do take their values to the workplace. So, this is about the political workplace, basically.

Yes, there will be a big crowd, but they are not just from Pennsylvania, I should add. There are theologians in the crowd, they will, in fact, take some questions from there, as well. You know our own Campbell Brown will be one of the moderators; the other is Jon Meacham, who is from Newsweek asking the questions.

But again, they have theologians, religious experts, religious study experts in the crowd, and there will be questions from there. So this is, yes, a very interested crowd, as well as an issue that really does cut across the country, as people grapple with the idea of religion and faith and politics, which has always been a bit of an uneasy mix.

WHITFIELD: Yes, and all of this to start the week where the pope for the first time makes his visit to the U.S., Washington first and then New York. Candy Crowley, thank you so much, there on the campus of Messiah.

CROWLEY: Thanks, Fred.

WHITFIELD: And of course, a reminder, you don't want to miss this COMPASSION FORUM. Tonight, Barack Obama, Hillary Clinton, 8:00 p.m. The discussion and Q&A being led there by Campbell Brown.

All right. Well, did greed lead to murder? Two elderly women are heading to court, accused of killing men for money.

Plus, a mistake or just good luck? A mixup at a North Carolina gas station has some drivers eager to fill 'er up.

And meet the young lady who is too young to drive, but not too young to take action when it comes to the rising cost of gas.

And, don't forget, financial expert and author Clyde Anderson is in the NEWSROOM, and he's going to stick around to answer your financial questions. So, that means you need to e-mail him at weekends@cnn.com. We'll read some of your questions, and we'll get the answers right away for you this hour.

(COMMERCIAL BREAK)

WHITFIELD: Now just about everybody is getting involved. Out of the mouth of a child comes a plea for lower gas prices, 8-year-old Madeline Dalton from Massachusetts wrote to President Bush -- wrote an impassioned letter, and here is why. Take a listen.

(BEGIN VIDEO CLIP)

MADELINE DALTON, 8 YEARS OLD: I saw the gas prices, it was $60 to fill up the minivan. So I asked my mom if I could write a letter to the mayor. And she said that the mayor couldn't do anything about it. So I said, how about the president? And she said, that -- you could to write a letter to the president.

(END VIDEO CLIP)

WHITFIELD: All right. And so she did. An 8-year-old's comments straight to the president's ears.

And when was the last time anyone filled their tank for under 5 bucks? It actually happened in Wilmington North Carolina. This gas station mistakenly listed gas at 35 cents a gallon. And as you can imagine, folks were quite excited, lining up there, even dancing. The owners finally got a clue, and turned off the tap; $3.34, $3.35, $3.36. that's what you've been seeing at the pump. And it's what has been happening all week long.

Well, have you ever heard of gasbuddy.com? It's a Web site that spies out cheap gas prices right in your neighborhood. Joining me now is gasbuddy.com co-founder Jason Toews.

Good to see you, Jason.

JASON TOEWS, CO-FOUNDER, GASBUDDY.COM: Thanks for having me.

WHITFIELD: All right. So how do you guys spy out the gas?

TOEWS: Well, what our Web site is, gasbuddy.com, it's reliant on ordinary people to make a note of the gas prices on their daily commute. They logon to the Web site and report them. Then these tips are available for everybody to search on, and you are able to find the cheapest gas in your neighborhood.

WHITFIELD: Wow. And what people observe is that, you know, one gas station, it may be $3.36, and then just a couple of blocks down the road, it may be $3.17, as we're seeing there. What's with the disparity? How can that happen in such close proximity?

TOEWS: Well, you know, there's a lot of reasons for that. One of them is zone pricing. And that means that they actually pay different wholesale prices for the gasoline, depending on what zone they're in. And they may be actually right on the border between one zone and another.

WHITFIELD: Oh, so it's not something like better quality versus, you know, the other guy's gas?

TOEWS: Typically not. You know, different brands like Shell will say that they have different additives in the gasoline to help it burn more cleanly and they charge more for it, typically. But more or less, the gas is the same.

WHITFIELD: All right. So, how do I navigate this Web site? How do I get on and find out, you know, where the best gas is, what neighborhood, et cetera?

TOEWS: Well, gasbuddy.com is the main portal Web site to 181 local gas price Web sites. We have Web sites all across the country, like losangelesgasprices.com or chicagogasprices.com. And gasbuddy.com basically just helps you find our local Web sites, where we have all the detailed local content.

WHITFIELD: Mm-hmm, so, what do you say to folks who say, you know, I'm willing to drive 10 miles or 20 miles for cheaper gas, as opposed to what's right around the corner, but it seems to me if you are going to drive that car, you sure are wasting a lot of gas, so, do you really save any money?

TOEWS: Yes, you know, we don't expect people to drive, you know, 10 or 20 miles out of their way. Most of the time, you can actually save 10, 15 cents per gallon just by driving an extra block or two out of your way.

WHITFIELD: How popular...

TOEWS: You need to...

WHITFIELD: Oh, sorry, go ahead.

TOEWS: You need to know where the deals are. And sometimes it's just driving an extra couple of blocks off the freeway to find a good deal.

WHITFIELD: All right. So how popular have you been? Are you finding that you are getting a lot of hits? People really are using this tool?

TOEWS: Yes, you know, we've been getting around 2 million hits per day these days. And it seems to go up, you know, if gas prices are going up, or if they are going down, we seem to get more traffic on the Web site, you know, if it's more newsworthy.

WHITFIELD: What are your predictions over the next couple of months? What are we going to be seeing at the gas tanks -- pumps?

TOEWS: Well, we're going to peak right before the Memorial Day long weekend and I think we're going to see probably $3.70, $3.80 per gallon for most of the summer.

WHITFIELD: Yes. And traditionally it always does seem to go up around the holidays, particularly Memorial Day because folks are now planning their summer getaways. Despite these high gas prices, do you think people are going to kind of pare it off, maybe they're not going to hit the road as much, or is it still cheaper to drive than it is for a family to fly?

TOEWS: Well, you know, it does impact people. You know, I've heard of some people saying that their car payments are less than their gas bill now. So, it does impact people, you know, people tend to stay closer to home, or maybe not go to the lake as much, or just generally do less driving. And so it does impact demand on gasoline.

WHITFIELD: All right. Jason Toews of gasbuddy.com, thanks so much for your time.

TOEWS: Thanks, my pleasure. WHITFIELD: Well, it's the cruel reality, isn't it, high gas prices, and then of course the mortgage meltdown, the credit crunch, all of that. Well, we have got mortgage consultant and finance expert Clyde Anderson with us. He has been fielding some of your questions because you've been writing in with all kinds of e-mails. Can you give me a taste already of what you've got?

ANDERSON: Good stuff.

WHITFIELD: Good stuff?

ANDERSON: Good stuff, yes.

WHITFIELD: All right. Good, we're going to delve into it a little bit further I think a little bit later, right?

ANDERSON: All right. I'll be ready.

WHITFIELD: OK. Actually, Clyde, I think you have got some stuff for me now.

ANDERSON: All right.

(LAUGHTER)

WHITFIELD: And we have more later. But what kind of e-mails are you fielding right now?

ANDERSON: Well, we've got a lot good questions that are coming in. First question that we have is from someone that writes in to ask: "I don't understand how adjustable rates are going up while the Fed keeps lowering the interest rate."

And really what they have to look at, the feds are, when they are lowering those interest rates, they're not really -- they're not really looking at -- the big picture here is what we have to all look at. It's almost a supply and demand type of thing.

When 30-year fixed rates are at a low, and we're talking about the rate that they can actually buy or sell these bonds at, people go towards the 30-year bond. When you are looking at that, it's secure, it's a long-term investment.

So now when you are looking at an adjustable rate, it's not going to be as attractive as that 30-year rate is. And so therefore, again, the supply and demand. More people are going to go for that 30-year fixed, and that adjustable is going to go up higher and higher and higher. The yield on that is going to keep going up and up.

WHITFIELD: OK. What's the next question you have?

ANDERSON: Next question we have. All right. "Did they not know this from the get-go? Did they sign blank papers? A lot of these people are investors tried to take advantage of the market. This will only help them. Why should we?" Well, what he's referring to is the bill that's going to help a lot of investors with this foreclosure situation. And a lot of people did get into situations, but you have a lot of factors that played into it.

You have predatory lending, for example, that played into that. So it's not the fact that people signed blank papers. A lot of people were taken advantage of. And so I think that's part of the issue that you have to consider.

And so now when they are saying they are trying to help investors, they are trying to help bail out or save some of our communities from just having these vacant properties. (INAUDIBLE) you want people to buy these properties. So they are trying to incentivize them to actually buy the property, help the rates or, say, the values in our neighborhoods to continue to improve. And so, that's an incentive that they are doing to help that.

WHITFIELD: OK. All right. Clyde, we have got more e-mails coming in, and we do want to encourage folks, if you have questions about the mortgage meltdown, the credit crunch, all of that, how to navigate this financial mess out there, send them to weekends@cnn.com. And Clyde will answer them right on the air within this hour.

Well, keep watching CNN, our money team has you covered on jobs, debt, housing, savings, in other words, your wallet. Join us for a special report, it's called "ISSUE #1: The Economy." That's all week at noon Eastern only on CNN.

Also, guilty of insurance fraud. Even their lawyers say yes. But murder? That's another story. One about two elderly women in California, accused of befriending two homeless men, then eventually killing them for profit. The trial is in it final stages, and CNN's Ted Rowlands takes us to the courtroom.

(BEGIN VIDEOTAPE)

TED ROWLANDS, CNN CORRESPONDENT (voice-over): Prosecutors say two old ladies, 75-year-old Olga Rutterschmidt and 77-year-old Helen Golay are cold-hearted killers who made millions from insurance fraud. In June of 2005, 50-year-old Los Angeles transient Kenneth McDavid turned up dead in what appeared to be a random hit and run. Investigators discovered that Golay had been paying the victim's rent for two years and that she and Rutterschmidt had more than a million dollars in life insurance on him.

Then after some digging, police realized the exact same thing happened in 1999 to Paul Vados, another homeless man killed in a hit and run. The same two ladies, Golay and Rutterschmidt, had cashed in on more than $800,000 in life insurance. Prosecutors alleged the women met the homeless men at this church, first befriending them, then putting them up in apartments as they took out insurance policies.

Then, prosecutors say, they killed them. SHELLIE SAMUELS, L.A. DEPUTY DISTRICT ATTY.: The way that they were killed, in our belief, is that they were rolled over slowly while they were still alive.

ROWLANDS: At trial, prosecutors presented evidence linking Golay's car to the McDavid death. They also showed jurors this police station video of the women after their arrest.

UNIDENTIFIED FEMALE: I should have taken my passport. It's expired, and get the (expletive deleted) out of here, get the money and get the (expletive deleted) out of here. That's what I should have done. See what greediness -- see what greediness leads you to?

ROWLANDS: Prosecutors argue greediness led to murder, and are asking jurors to convict the old women on two counts each of murder. Defense attorneys argue the women are only guilty of insurance fraud but didn't kill anyone. The jury is expected to get the case on Monday.

Ted Rowlands, CNN, Los Angeles.

WHITFIELD: Well, supposedly a joke, but no one is laughing. Let's start with a picture. Behind that mask, an Ohio state trooper. The person taking the picture, another trooper. Well, they sent it to a third officer. It was supposed to be a joke modeled after a skit by comedian Dave Chappelle. But the officers' timing apparently is as bad as their sense of humor. They did this the day before the Martin Luther King Jr. national holiday. Well, supervisors say they would have been fired if it wasn't for a clause in their union contract.

WHITFIELD: It goes way beyond your corner store. How the entire world is feeling the pinch from higher food prices.

Plus, digging deep to stop a curse. How construction workers spent the day searching for a buried jersey.

(COMMERCIAL BREAK)

WHITFIELD: It is a very real crisis that's putting millions of families in peril, and no, it's not issue number one. At least not in this country. We don't have a widespread food emergency. But plenty of countries abroad, some as close as the Caribbean, are not so fortunate.

CNN's Isha Sesay reports.

(BEGIN VIDEOTAPE)

ISHA SESAY, CNN CORRESPONDENT (voice-over): In Haiti, hospital beds are filled with the wounded, and the prime minister has been kicked out of office in the aftermath of riots on the streets. The violence scene sparked by rising food prices, repeated around the world.

In Egypt the signs of unrest include broken windows, burnt cars, and police in full riot gear. From Bangladesh to Mozambique, battles on the streets sparked by a bigger battle with hunger.

JOSETTE SHEERAN, WFP EXECUTIVE DIRECTOR: It's in places where people were not desperate before, more people hungry.

SESAY: The U.N. says world food prices rose 40 percent last year. Basic food stuffs, bread, milk, and cooking oil, all more expensive, and all increasingly out of reach to millions of the world's poor.

JACQUES DIOUF, FAO DIRECTOR-GENERAL: We believe that in this present situation, we have to tackle the problem at highest political level. To be honest with you, I'm surprised that I have not been summoned to the Security Council to discuss these issues.

SESAY: Prices continue to climb, seemingly independent of supply as rising fuel costs and slumping economies complicate the equation. Much of the unrest brought on by the exploding cost of rice. It's a commodity becoming so valued that farmers in Thailand must protect their crops with guns.

India, one of the world's major producers, has banned some rice exports, hoping to keep down domestic prices, but only adding to the international crisis. U.N. officials met to discuss the situation, worried that the basic principles of supply and demand no longer apply.

DIOUF: All the indication we have is that this is not a short- term effect obeying to the law of (INAUDIBLE) where the first year you have prices increase, the following year there is increased supply that brings the prices down.

SESAY: As countries protect what they have, some are hording, while others like Haiti are diverting aid money to subsidize food. They are local short-term answers, but the U.N. warns, even as the violence begins to subside, without concerted international action, high food prices will remain.

Isha Sesay, CNN, Atlanta.

(END VIDEOTAPE)

WHITFIELD: And we're taking your e-mails, all things economy. Clyde Anderson is answering them.

What you got, Clyde?

ANDERSON: All right. I've got some really good ones here. All right. The next one I have here is from someone that is sending in a message that says: "I saw two houses that I really liked in my purchase range. It's 250,000 to 300,000. One of the houses asking 279, the others 299. My question, is there a first time home purchase program I can use, is this a good time to purchase?"

You really have to look at your neighborhood, where you're buying. Check with your county, check with other organizations that offer these programs and they will tell you where that purchase price range is. There's a lot of money out there for people who are looking to buy homes. You just have to really do your due diligence and look for it.

WHITFIELD: All right. You got another?

ANDERSON: I do. I have one right here. "How do I get rid of PMI?" Now PMI is private mortgage insurance. And you want to get rid of that PMI, the thing you have to do is get your mortgage down to an 80 percent loan or value. I mean, you have to pay at least 20 percent into your mortgage. You can do this through appreciation of value, or you can do it by actually putting real dollars down.

Just want to check with your mortgage company, find out what the value is of your home, what the other houses are selling for in the neighborhood, and this may be a perfect time to get rid of that PMI.

WHITFIELD: All right. Perfect, Clyde, we really appreciate it. Good e-mails, good responses you got there. Folks are, you know, inundated with all things economic, or economy-related. And they got a lot of questions. So thank you so much. And I think we have got some information on where to continue dialogue with you. Your Web site is?

ANDERSON: Www.paramindpublications.com.

WHITFIELD: And that is P-A-R-A-M-I-N-D publications.com.

ANDERSON: Publications is plural. Yes.

WHITFIELD: Perfect. All right. Clyde Anderson, thanks so much. Thanks for playing with us this hour as well.

ANDERSON: Thank you, it was my pleasure.

WHITFIELD: OK.

All right. Well, so much for the curse. The New York Yankees dig deep to stop an attempt to jinx their new stadium. What's going on? CNN NEWSROOM will be back in a minute.

(COMMERCIAL BREAK)

WHITFIELD: More now on that breaking story out of Orlando. We're learning more about a shooting at a Wet 'n Wild water park in Orlando. Here is WESH reporter Craig Lucy (ph).

UNIDENTIFIED MALE: ... we just learned that the injuries that these two victims suffered are non-life-threatening. Although we've heard that one was shot in the leg, another was shot in the face behind me along International Drive, 25-plus Orlando Police squad cars. International Drive is shut off from Kirkman (ph) all the way down to Universal.

And earlier, as I was saying, there was some police officers walking up and down International Drive with shotguns. And back there are some students on the other side of this squad car that they are keeping quarantined over there.

And then if we swing further over down this way, that is right at International Drive and Universal. There's a lot of students sitting outside of Wet 'n Wild, sitting there down on the curb.

I spoke to a witness not too long ago. And he said that they are keeping all of these students, students from all across Florida -- high schools all across Florida, inside Wet 'n Wild to gather evidence.

We have learned that police are surrounding a Chevy Impala possibly to gather some evidence at this point. And I asked that witness what it was like inside. He said at this point, a lot of the students were just asking each other what exactly happened. He described it as confusion.

So we're waiting to get more information, and we have learned that there might be possibly three scenes out here. But it's still a very active scene. There are Orlando Police squad cars all up...

(COMMERCIAL BREAK)

WHITFIELD: All right. Well, think of all the Red Sox fans that have cursed the New York Yankees over the years. Only this time, a construction worker took it to new extremes.

(BEGIN VIDEOTAPE)

WHITFIELD (voice-over): Things haven't been the same for the Yankees since that night in 2004 when David Ortiz of the Boston Red Sox blasted an extra inning homer, and turned around an American League Championship Series the Yankees were all set to win.

The hated Sox would go on to win the World Series, their first since World War I, reversing the fabled curse that fell upon the Sox in 1920 when they traded Babe Ruth to the Yankees.

As for their own recent woes, the Yankees hope their upcoming move from "The House that Ruth Built" to a new stadium across the street will prove to be a charm. So, Yankee fans were incensed at news of a plot to jinx it.

The New York Post first broke the story of a worker at the New Yankee Stadium who was a Red Sox fan who buried the jersey of a certain Red Sock in the stadium's concrete bowels. None were more incensed than other construction workers.

FRANK GRAMAROSSA, CONSTRUCTION WORKER: I read an article the other day that Derek Jeter said I hope somebody digs it out, and that's really what gave us our motivation.

WHITFIELD: Yankee brass called the Jersey plot a dastardly act, but wasn't sure about digging the shirt out..

RANDY LEVINE, PRES., NEW YORK YANKEES: It's never a good thing to be buried in cement when you are in New York. So we were thinking about, maybe we should just add some more cement on it.

WHITFIELD: Rather than tempting fate, workers sprang into action. After the Yankees got a tip on the jersey's location, five hours of digging on Friday, and two more hours Saturday, and there it was. That Jersey with the name of you-know-who, the Red Sox's David Ortiz.

Curse averted. The city that never sleeps can rest easy tonight. Well, maybe.

(END VIDEOTAPE)

WHITFIELD: It's going to be some season.

All right. Remember, Campbell Brown leads "THE COMPASSION FORUM" tonight at 8:00 Eastern, only on CNN, your home for politics. I'm Fredricka Whitfield, thanks for joining me in THE CNN NEWSROOM.