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FDA Investigates Tomato Scare; Two Hikers Rescued From Mt. Rainier; Perry Holds Press Conference on Fire at Governor's Mansion; Midwest Still Reeling From Extensive Water Damage

Aired June 11, 2008 - 10:00   ET

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

HEIDI COLLINS, CNN ANCHOR: Good morning once again, everybody. I'm Heidi Collins.
TONY HARRIS, CNN ANCHOR: I'm Tony Harris. Stay informed all day in the CNN NEWSROOM.

Topping our run-down this hour ...

COLLINS: More water worries in the Midwest. Thousands of volunteers save an Iowa town with sandbags but rising rivers threaten other communities and more rain in the forecast.

HARRIS: Today, Wednesday, June 11, you are in the CNN NEWSROOM.

COLLINS: Quickly want to take you back to southeast Houston. Pictures coming in from this chemical leak we have been telling you about from our affiliate there KTRK. We have a little bit of new information for you. This is happening at the Goodyear Houston plant. Apparently, six people are now being treated from this ammonia leak.

There was a small explosion this morning that touched off a small fire. This leak of ammonia apparently authorities there are saying that the public is not in any danger but there was one injury that's apparently life threatening at this point. When it all happened, about 100 people inside the plant had to be evacuated. So we are watching those pictures for you. So once again, out of Houston, Texas, our affiliate KTRK.

HARRIS: More falling rain, more rivers rising. More misery this morning from the Midwest flooding and the threat could continue for weeks. In Cedar Rapids, Iowa, sandbag levee looks like it is holding so far. Officials are still worried that the river could break through the levee and flood the cities downtown. In Wisconsin, authorities are watching 1,000 dams. Only two have given way since Monday. Others could fail as more rain falls and it is in the forecast today.

Also in Wisconsin, engineers are repairing the damage left after Lake Delton drained into a nearby river. Four homes were swept away and the popular lake was reduced to a mud pond. You're going to see that in a second here, the flooding in Lake Delton, Wisconsin, it comes just as the summer tourism season is about to kick off.

Let's get you to our Susan Roesgen. She is there with more on the damage and the recovery effort.

And Susan, I understand that people are absolutely amazed at how quickly the water in that lake drained out.

SUSAN ROESGEN, CNN CORRESPONDENT: You know, Tony, it is true, too much water in too many places and too little right here. I am standing this morning on the ramp used by water skiers in the middle of basically empty Lake Delton.

Now we have some new video this morning to show you what happened as the lake drained out like a bathtub. The rain have been so heavy, early Monday morning, that it wiped out an embankment, let the water rush through and these homes falling into the rushing water were just absolutely swept away. These million dollar vacation homes, far away from the water a few days ago, were swept into the water that was running out of Lake Delton like water draining out of a bathtub. There was nothing anybody could do to stop it.

(BEGIN VIDEO CLIP)

GOVERNOR JIM DOYLE, WISCONSIN: There's really no part of the southern part of Wisconsin that has been spared. Just to see the amount water across this state is -- it is -- just shows you what Mother Nature can do.

(END VIDEO CLIP)

ROESGEN: You are looking at the empty stands here at the Tommy Bartlett show. This is where they had the big water skiing show every year. This would be the 55th year for it here in Lake Delton but they are not going have the water skiers this year. They are trying to make lemonade out of lemons. What they decided to do is they're going to go ahead and have the dry land part of their show tomorrow.

They are going to try to pack those seats with people to watch jugglers, and a comedy act, and magicians. They are hoping that loyal visitors will come here and bring their kids here and at least watch what is going to happen on dry land and then come back next year for the water skiing because the plan right now is not to refill this lake until the end of the season. The entire season is lost, all the lake activities, the restaurants along the lake, the boating, the fishing, just a total wash out.

HARRIS: Look at you on the ramp. I have to ask you, if that's the case, isn't this an area -- isn't this a location that depends on the tourists for its livelihood particularly in the summer months? I wonder can that area really survive without the business, without the tourists?

ROESGEN: That's the question we have been asking everybody here. A resort owner that's having to tell people, you know, we don't have any water here this year. It is actually a billion dollar tourist industry in this area. But there are lots of water parks, other things away from the lake that don't depend on lake water itself. They are hoping Wisconsin and Lake Delton, they can survive this but as far as the businesses that actually depend on the lake, they have bills to pay and they expected revenue that's not coming in now. It is going to be very tough. We will have more on that on "ISSUE #1" coming up later this morning.

HARRIS: All right. That's terrific.

Susan Roesgen for us, Lake Delton, Wisconsin.

Good to see you. Thank you.

COLLINS: Yes, Wisconsin, they are a huge tourism. There's more miniature golf places, I think, than I have ever seen in my entire life. Casinos. Hopefully they will be able to survive without that lake which is so amazing.

Isn't it, Rob?

ROB MARCIANO, AMS METEOROLOGIST: Yes. It is a surreal sight, for sure. You can see behind Susan, it is still -- the leftovers are still making their way out of that new hole that used to be a levee holding on all that stuff up.

All right. Flash flood watches and warnings, a lot of warnings out for a lot of the rivers in Iowa, Wisconsin and Indiana and Illinois again. And this is the Google Earth depiction of some of the river gauges that are in the Mississippi River drainage system. The pinks or purples I should say are where major flooding is either happening or is forecasted to happen.

Iowa which has had some flooding problems all year long, this is the latest batch in through Cedar Rapids. This part of the Cedar River is expected to crest at 22 feet on Friday. That's six feet above major flood stage. That's a problem there. And the Iowa River which is close to the University of Iowa, that's forecasted to crest Saturday at five feet above major flood stage. This is all going down into the Mississippi River which, you know, it's going to have some flooding as well but not crest until Monday in Burlington at 22 feet. That's about four feet above the river, the major river flood stage there.

All right. Here we go to where the action is now. Thunderstorms that can become severe. Severe thunderstorm watch out until noon in the western parts of Minneapolis and northwestern parts of Iowa.

Live shot of Dallas for you where it has been hot; 92 the expected high temperature today. WFAA, our affiliate is starting to look rather warm. We had a record-breaking high temperatures across much of the east coast yesterday, temps in the 90s and 100 was the high at La Guardia not including humidity and of course that is measured in the shade. It will cool down to more comfortable 88 degrees. Back to you.

HARRIS: Summer is here.

COLLINS: Not too bad.

MARCIANO: What's that, Tony?

HARRIS: That's me. Hello. If anyone was wondering, that's me, personal fan.

COLLINS: Thank you, Rob.

We want to get back to some of the weather story happening in Iowa. Evacuations are under way in Cedar Rapids, Iowa as the river there rises. On the phone with us is Dave Koch. He's the city's public information officer, going to give us the very latest.

Dave, tell us about these evacuations. How many people are out of their homes at this point?

DAVE KOCH, SPOKESMAN, CITY OF CEDAR RAPIDS: Right now we've got probably about three or 400 homes that have been evacuated since late last night, early this morning. Fortunately, everything is going very well. We did have, you know, some warning that the river, you know, was going to get like it is already. We have had a few days to prepare. We let people know over the last couple of days, you know, this was coming. A lot of people have gotten out on their own.

COLLINS: That's terrific. I mean any time that you can have some type of warning, it is great news. People being able to do a little bit of planning. I imagine even in the, what is it 14 years you have been doing this job, have you ever seen anything quite so bad as this?

KOCH: No. Absolutely not. I mean, we are forecasted to go to 22.1. The highest this has ever gotten in 1850 was 20.0. We will be well above our record. It is really unbelievable.

COLLINS: Yes. We saw earlier some great video and now we are looking at the still photos of the sandbagging that went on. One person we spoke with said boy, really proud to be from Cedar Rapids because of the way everyone volunteered and got out there and really saved some parts of the town.

KOCH: You know, it really is, you know, remarkable that the citizens here in town and everybody really have to come out to help. We have put the word out and it was just a terrific response. At some point, we did have to just tell people, you know what, we have more people than we can use right now for sandbagging. So people are coming in after hours, literally, 24 hours around the clock for three days. This will continue for at least another four days as the crest won't come until Friday.

COLLINS: Really? Another four days, crest comes Friday. All right. I was going to ask, you know, what's next? Do you have everything that you need?

KOCH: We have gotten a lot of help. We had offers from other communities. The county here has been terrific wit this, although the county here is dealing with their own flooding as well. We have the National Guard that's offered to help the police department maintain order here as we evacuate people out of certain areas of town. Everybody is coming together, helping us with resources and right now, we are doing fairly well. We just -- you know, we are preparing and raising the levels of the dikes, levees in town, to hopefully protect as many people as we can.

COLLINS: Yes. Absolutely. Quickly, we should point that out. No injuries reported in all of this so far, right?

KOCH: That's absolutely correct. We are very thankful and grateful for that.

COLLINS: Absolutely. All right. Dave Koch, we appreciate your time this morning, the public information officer, Cedar Rapids, Iowa. Thanks again.

HARRIS: Boy, it just keeps rising. Brace yourself. Regular gasoline now averaging $4.05 a gallon, a record high according to AAA, .9 of a cent higher than yesterday. AAA says the cheapest gas can be found in Missouri at about $3.85. State U.S. economy outlined today by the Federal Reserve and its so-called beige book report, the document summarizes six weeks of financial news. It is coming out at 2:00 p.m. Eastern Time. Analysts predict a focus on inflation amid a weaken economy. CNN senior business correspondent Ali Velshi will have all of the developments.

COLLINS: The sputtering economy is issue number one. Republican John McCain is stepping up his attacks on Barack Obama now. His latest target, Obama's suggestion that the North American Free Trade Agreement be renegotiated. McCain says that would hurt small businesses. He agrees with Obama on one idea, a new economic stimulus package. Obama's proposal totals about $50 million. McCain has not put a number on his ideas yet.

Meanwhile, Obama's list of potential running mates now numbers about 20. Senator Chris Dodd of Connecticut is one of the names to come up. One Democrat who has seen the list says it also includes former lawmakers and former top military officials.

HARRIS: A jetliner in flames. Investigators say today searching for clues in the charred wreckage. A Sudan Airways jet burst into flames last night after a brought landing in Khartoum. The Khartoum International Airport, that's in northern Africa. At least 29 people died. Somehow -- how miraculous is this, at least 171 people managed to escape -- 14 are missing. The city's police chief said a defect of the plane led to fire and thunderstorm and high winds also believed to have played a role in the disaster.

COLLINS: Keeping the food supply safe. Are inspectors up to the job? We will take a look at what may be holding them back.

(COMMERCIAL BREAK)

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

Like water running out of a bathtub, a 300 acre lake drained in two hours when a levee gives way. Water resort becomes a mud flat.

(COMMERCIAL BREAK) HARRIS: The FDA says Florida and California are not involved in the new salmonella outbreak. Those states are the nation's top two tomato growers. What is the FDA doing to find the source of contamination?

CNN's Miles O'Brien has the story.

(BEGIN VIDEOTAPE)

MILES O'BRIEN, CNN CHIEF TECHNOLOGY & ENVIRONMENT CORRESPONDENT: Rotten tomatoes, growers all over the country figure they have a multimillion dollar supply sitting in fields unpicked or boxed up with no place to go. A lot of those growers and a lot of consumer advocates would like to aim some of that fruit squarely at this man.

ANDREW VON ESCHENBACK, FDA COMMISSIONER: We have not identified where that source is.

O'BRIEN: That's Food and Drug Administration commissioner Andrew von Eschenbach, who gave reporters a tour of a lab where scientists are trying to find the source of salmonella in certain types of raw tomatoes, CSI style.

VON ESCHENBACH: These tomatoes may be coming from a variety of different field, going to a variety of different distributors. Brought together and disseminated to a variety of retailers. It is a very complex process.

O'BRIEN: Critics of the FDA say it would be a lot easier if the agency was doing its job. For years, the FDA has been underfunded and understaffed and unempowered.

SARAH KLEIN, CTR. FOR SCIENCE IN THE PUBLIC INTEREST: The FDA should be mandating food safety. It should not be voluntary. It should not be an issue the industry has to create guidelines for itself. This is a government responsibility and they failed consumers again and again.

O'BRIEN: Klein says since 1990, salmonella tainted tomatoes made more than 3,000 Americans sick. There's much more. In recent years, the FDA failed to stop the spread of tainted spinach and lettuce, peanut butter and poisoned toothpaste from China. Critics of the agency say it is no coincidence all this happened as the agency cut out inspectors and drastically reduced food safety tests.

DAVID ACHESON, FDA DIRECTOR OF FOOD SAFETY: In 2008, we did get an increase. The president's budget in 2009, there was a further increase as part of the president's budget package. But it's not just a question of resources. It is a combination of resources and linked with new authority.

O'BRIEN: Even with more money, the FDA has its hands tied behind its back. Unlike their counterparts at the Agriculture Department that watch the meat supply, FDA inspectors do not even have the authority to visit a farm without the owner's permission. KLEIN: They are unable to test products before it leaves the farm to ensure that it is safe. And that's the real failing. It illustrates our food safety system needs a complete overhaul.

O'BRIEN: Miles O'Brien, CNN, New York.

(END VIDEOTAPE)

HARRIS: If you would like to learn more about the tomato scare, be sure to logon to our Web site. There you can see a map of where the illnesses have occurred and what states are growing safe tomatoes. It's all at CNN.com.

COLLINS: We want to give you this information that we are learning in the NEWSROOM here regarding two hikers that had been missing, actually stranded, on Mt. Rainier, they have been rescued. Unfortunately, there was a third hiker who did die in all of this. I will read you what we learned here. The man and woman had frostbite and hypothermia. They had been caught overnight Monday on a terrible blizzard that came out of nowhere.

Unfortunately, the woman's husband had been killed. It was a hike where they were going to camp. They were caught in the storm and it actually dumped two feet of snow very, very quickly. Once again some good news coming out of the situation, missing hikers on Mt. Rainier have been found and they are now seeking treatment.

HARRIS: Coping with inflation. Gerri Willis has tips on how you can squeeze the most out of your shrinking dollar.

(COMMERCIAL BREAK)

HARRIS: Need to take to you the New York Stock Exchange right now and give you a look at what's happening on the big board, kind of a roller coaster session so far, just an hour into the trading day. We got off the mark in negative territory down 30, 35 points initially. And, man, we have gone south from there. As you can see the Dow down 144 points, NASDAQ down as well 29 points.

What's happening with tech stocks on the NASDAQ? What's happening with stocks overall on the big board? We will do a market check in a couple of minutes with Susan Lisovicz right here in the CNN NEWSROOM.

COLLINS: Federal Reserve Chairman Ben Bernanke is hinting that inflation will keep the fed from cutting rates again. Personal finance editor Gerri Willis tells us how little things add up in your fight against rising prices. That's the question Gerri battling inflation.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Can you battle inflation? In fact, Bernanke says that he may actually raise rates, inflation could catch on fire. A lot of people worried about that. So you've got to change your little habits and the things you started buying that you never bought before. That cup of coffee on the way to work at $1.40 a day is $364 a year. Maybe more? If you buy that bottle of water and Heidi I don't know if you are one of those folks ...

COLLINS: I'm the coffee girl, sorry.

WILLIS: Five days a week of water. I see so many folks do this. $325 a year and of course, the whole green thing. You know, you have to throw away the plastic bottles. Maybe you've have you gotten over the midday hump in the middle of the day, bored, can't focus, a dollar a pop five days a week at the vending machine, $260 a year.

COLLINS: That's a luxury.

WILLIS: $240 a year. Add all of that up, Heidi, it is $1,200 a year. I'm just saying.

COLLINS: I know. You are right. You've got to find ways to cut back. No question about it.

WILLIS: Little things add up.

COLLINS: How do you really insulate yourself, if that's at all possible for some of these rising prices?

WILLIS: You certainly can do that from the price of groceries at the mall, prices in the local mall stores, everywhere. Prices are going up. To cut the costs at the grocery store, look for store brands over name brands. The quality is the same. Some folks like those better. You will cut your costs significantly as much as 30 percent, maybe even 50 percent. Visit web sites like coolsavings.com or valpak.com and get a store card if you are always going to the same grocery store every week. You get an automatic discount all the time.

Don't shop on an empty stomach. I'm always guilty of this. Chances are you will buy the cookies and god knows what else. Avoid markups at the mall. Take advantage of local resources. Check out this Web site. Yardsalesearch.com to find sales in your area. You can check out freecyle.org, an Internet based group. They link up folks that are trying to get rid of stuff who don't want them. All have you do is take it away and get it for free.

COLLINS: Wow. All right. Great tips. Love that. What do you do when you are -- we look at all of these cutting corners. You are obviously thinking about the future. Specifically, you are retiring.

WILLIS: Most people don't think inflation is a problem for retirement. Guess what, during times of inflation means more money to combat rising prices. If you are in retirement, you want to keep at least half of your portfolio in stocks rather than bonds. Do you want to know why? Stocks you performed inflation over every 17-year period since the 1800s.

It is not just a rule thumb. It is a real rule. On the other hand, bonds consistently have done worse over times of inflation. If you do have bonds in your portfolio, you might think about getting into tips. No pun intended. It stands for Treasury inflation protected security. Look into these investments. Principal and interest increases when inflation goes up. Buy them directly from the government. Get out your credit card at treasurydirect.gov. Companies like Vanguard, Fidelity, mutual funds. If you have a decade or two before retirement, a diversified portfolio with a mix of equity investments.

COLLINS: OK. So when you're looking on the horizon of what's coming up, what do you see, what will we be looking at?

WILLIS: Inflation numbers Friday. The forecast is for half a percentage increase in inflation. That would mean by the end of the year, inflation is expected to be 3.5 percent higher than last December at this time. That's a really big jump. Keep in mind the forecast for 2009, though is inflation will go lower. Although a lot of this depends what the fed does. Let's keep this in perspective. I want to provide context for this. In 1980, the inflation rate was 14.6 percent. We are not even close to that.

COLLINS: Thank you for that. Gerri, we are looking for silver linings everywhere we turn.

WILLIS: Let me remind your viewers if have you questions, send them to us at toptips@CNN.com.

COLLINS: We love hearing from you. We also want to remind everybody what's happening at noon today with that show, "ISSUE #1." We are going to be -- you know.

WILLIS: I don't believe I sang our show. We are talking about great stuff. Why the flooding in the Midwest could brace the cost of the food your buy today. "ISSUE #1" is on today at noon. Join us. We answer your questions live on the air.

COLLINS: All right. We look forward to it. Gerri Willis, thank you.

HARRIS: We want to take you to Austin, Texas now and show you pictures. We are anticipating a news conference, a briefing coming up shortly from Governor Rick Perry. We will get an update on the investigation into the weekend fire that did so much damage to the governor's mansion. Governor Perry actually taking a tour of the mansion for the first time on Tuesday.

The Bureau of Alcohol Tobacco and Firearms and Explosives leading the investigation right now -- 152-year-old building. There's the governor there. The building was undergoing renovations at the time. Most of the furnishings, artifacts, were out of the building. Let me stay with this for a second. Maybe the governor will walk up to the microphone and begin his comments.

Why don't we listen in? We are ready to go.

GOV. RICK PERRY, TEXAS: How are you doing? Good morning. I thank you all for coming out.

As long as I have been the governor of the state of Texas, I have had the opportunity and the duty to see a lot of things. There have been few sides that have left a deeper impression on me than yesterday when I pulled up here and saw the charred remains of this genuine Texas treasure that's standing behind me. As I consider what has been done to this very majestic home, my heart aches as does the first lady. As a Texan, I'm angry. I'm angry that part of our state's heritage has been attacked. And as governor, I'm saddened that a place that my family has called home, that our children literally grew up in, has been so badly damaged. I can't for the life of me, understand what would motivate someone to do this. But I do know that they'll be caught and they'll be appropriately punished for what they have done.

This house has stood for 150 years. And it's been a symbol of our state's commitment to representative government. It's a home where some very interesting and extraordinary Texans have called home. The Houstons, the Fergusons, the Connelleys. They all lived there, it was their home. And as the current governor of this great state, I'm committed to making sure that this tragedy will be but a small mark on the timeline of our state's most remarkable history.

We'll restore this house. We'll renew this property. We'll rebuild this magnificent structure so that if it generations can stand where we stand today in awe of an extraordinary history, of a powerful and interesting tradition of Texas -- independence, freedom. Texans have always rallied to a challenge when it was presented to them. Whether it was hurricane of monumental size by the name of Katrina, followed by one by the name of Rita. Whether it was dealing with a space shuttle falling from the sky, Texans have always responded to the challenge. And they will at this time as well.

For more than 150 years, this mansion has truly been a symbol of our freedom. Prestige of the grayest state in the nation. And it will be again. For 150 years, that structure has been home. It's been a home where children slid down the banisters, where they chased their pets in the yard, where they grew to adulthood. A place where families celebrated holidays, welcomed friends. And it will be again. For more than 150 years, this building has been the one constant as 40 different governors called it home. And it will be again. For more than 150 years, this governor's mansion has been the home of good people with great ideas for our state. And it will be again.

Thank you for coming out here today and I'll be happy to answer a few questions.

QUESTION: Can you tell us about the investigation and what you've been briefed on about the start of the fire?

PERRY: With any criminal investigation, it is ongoing and inappropriate for me or anyone else, to be talking about the specifics. I think the important factor for us to focus on is to give the support to those that are conducting the investigation.

And I want to take a moment and just say thanks to the Austin Fire Department and the Austin Police Department. We're really blessed to have the quality and the professional men and women who serve. I will suggest to you, it was their immediate and extraordinary effort that saved the structure. And I want to say again publicly how proud I am to live in a community that has a group of professionals that respond the way that they do and literally saved this Texas treasure.

QUESTION: Sounds like you want to keep at least some of the structure standing (INAUDIBLE). Have you given into the notion that it's salvageable, yet?

PERRY: Yes. The -- it appears at this particular time -- and I don't want to be premature, but the structure at this juncture, again -- until we are able to go in and take out the debris that is inside of the house and the structural engineers have had the opportunity to look at and make sure that the foundational work, that the walls -- but at this particular point in time and from the...

HARRIS: So there you have Governor Rick Perry, an update on the situation there, Austin, Texas, and the governor's mansion. Just destroyed by a weekend fire. The 152-year-old building just decimated. It was undergoing renovations at the time -- a $10 million renovation project. Most of the prize furnishings and artifacts were out of the building at the time. But it appears to be a total loss, burned essentially to the ground.

The investigation being led by the Bureau of Alcohol Tobacco and Firearms. Investigators have said that they suspect the fire may have been the work of one or more arsonists. And they've been busy reviewing video camera surveillance from the building and say at least one person was near the mansion at the time of the fire. The governor saying that we will rebuild this magnificent structure.

We'll take a break and we'll come back and give you an update on weather conditions in the Midwest. You're in the CNN NEWSROOM.

(COMMERCIAL BREAK)

COLLINS: Back from the brink. A teenage girls whose hospitalization exposed a shocking case of incest in Austria, is now recovering.

We want to go live to CNN's Frederik Pleitgen, following the developments from Berlin, Germany, this morning.

Good morning to you, Frederik.

FREDERIK PLEITGEN, CNN CORRESPONDENT: Hi, good morning, Heidi.

Yes, the doctors there in Austria describe the moment as absolutely heartwarming when Kerstin Fritzl, finally opened her eyes. They said they smiled at her and she smiled back at them. And she has been in an artificially induced coma for almost a month after suffering multiple organ failure. But now they say she's on her way to recovery and she's been united with her other family members.

Now, let me just get you up to the speed on the whole story. Because the details are just so crazy. About a month and a half ago, authorities in the Austrian town of Amstetten, discovered a secret dungeon under a house there, where a local man held his daughter captive for 24 years, raping her multiple occasions, fathering seven children with her. One of those children was Kerstin. It was when she fell ill that all of this came to light. Now as I said, she's been reunited with her family.

And let's hear what the doctors had to say about that.

CHRISTOPH HERBST, FAMILY LAWYER (through translator): It was the first time, I think, that all the members of the family were together. It was an extremely moving situation. For all, it was -- everyone, it was very lovely. Now of course, is it the time when the family can really find itself again.

PLEITGEN: And finding themselves again, they mean that quite literally. Remember that Fritzl kept three of his children underground, in the cellar, their entire lives. And three of them above ground in his apartment. So what the `doctors there are telling us is that the ones in the above ground and the ones who live below ground, have very different sort of styles and routines of life. He says, the ones underground, seeing a cloud in the sky, for instance, is a big event. For the other ones of course, that's nothing special. So these are people that have never seen each other and that now are slowly finding a way to come to terms with each other and to try to be a family -- Heidi.

COLLINS: I just don't even know what to say.

All right Frederik Pleitgen, we appreciate the update coming to us out of Germany today. Thanks, Frederik.

HARRIS: And trying to hold back the rising rivers but more rain in the Midwest today could add to the misery from devastating floods. Right now, a sandbagged levee looks like it is holding in Cedar Falls, Iowa. Officials are worried the river could spill over the levee and flood the city's downtown. They're asking for more volunteers to help shore up the sandbags.

In Wisconsin, engineers are repairing the damage after Lake Delton drained into a nearby river. Four homes were swept away. Officials in Wisconsin are also watching more than 1,000 dams for possible breaches.

(WEATHER REPORT)

COLLINS: Well, you can't wish away a $4 gas, but there are things you can do to cut back and save. And some of them are as simple as a phone call or logging on to your computer.

CNNMoney.com's Poppy Harlow, has our energy fix from New York this morning.

Hi there, Poppy.

POPPY HARLOW, CNNMONEY.COM: Hey there, Heidi.

Yes, we know that we'll save money by driving less. But, just to mention where oil is right now. We're up about $5 from the close yesterday, just up around $136 per barrel. So, really a big surge today. So that will mean a higher gas prices most likely. Today we're at another record high for gas -- $4.05 a gallon. Many Americans, they're driving less, trying to save money. But keep in mind there's another way to leverage that into other savings. You might not have thought about this, I know I didn't. You can save on your auto insurance. Not by switching to GEICO, but by letting your insurance company know that you are driving less. The Consumer Federation of America says if you are no longer driving to work, you may qualify as a for pleasure driver. That can mean a savings of 10 to 15 percent on your annual premiums.

And if you use public transportation to get to work, the train or the bus, you could save 5 to 10 percent. And another way to save is if you consolidate your trips and therefore, drive less. That could become savings of another 5 to 10 percent. Because of course, you mileage will be lower, Heidi. So I know I didn't think about this but it might help some people out there save a lot of money.

COLLINS: Yes, sounds like it. Might be at least a little bit that you can put back into your wallet. So don't keep any of these changes to yourself, though.

Are there other ones that we should know about?

HARLOW: Yes, you don't want to keep them to yourself. What you want to know -- what you want to do rather, is you want tell your insurance company how you are driving habits changed. Because a 15 percent savings on your premium could mean an average of about $140 in savings per year. Some states where insurance costs more, it could save you about $200 per year. That will pay for about 50 gallons of gas. That's real money. That's a real energy fix for people out there.

COLLINS: Yes, but to be realistic, I'm sure you heard this before, it's kind of hard for some people to cut down on their driving.

HARLOW: It's very hard. Especially if you live in a rural area, you have to drive to work. A lot of places are not like New York City. They don't have a great mass transit system so they have to drive. But, some people are getting very, very creative in search for their energy fix.

Some students -- this is very interesting this morning when I heard this. Some students are signing up for online courses in droves whether they're getting their college degree or their Master's degree. This comes out of the Tennessee newspaper which says, even students who aren't really computer savvy, they are taking the leap. They're trying to avoid 30-mile-plus commutes to campus. The Tennessee Board of Regions says online enrollment has surged 29 percent this summer as gas prices have surged.

Now, if you have plans go back to school, studying online could be an energy fix for you. It could save you a lot of money. One woman they interviewed in the article said she saves about 50 percent of what she was spending on gas by just not drive back and forth to school -- Heidi. COLLINS: Yes, sure. All right.

Well, CNNMoney.com's Poppy Harlow, we appreciate the energy fix today.

Thanks, Poppy.

HARRIS: Rolling down the river, one of those Wisconsin houses ripped from its foundation by rising waters. We're following flood alerts in the Midwest.

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COLLINS: A whole lot of blame. A 38-karat potentially flawless diamond on the auction block. You've got to hear what it's expected to fetch.

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HARRIS: In the market for some bling? Check this out, a billionaire heiresses' 38-karat diamond being auctioned by Christie's in London. The piece is described as potentially flawless. It is expected to go for more than $4 million. It is one of about 40 pieces of jewelry being sold that once belonged to Christina Onassis, the only daughter of Greek shipping magnate Aristotle Onassis.

COLLINS: I could wear that.

Coming together to save a town. Thousands of people pile up sandbags to keep a rising river from flooding its banks. We'll tell you about it in the NEWSROOM.

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HARRIS: Good morning again, everyone. You are informed with CNN. I'm Tony Harris.

COLLINS: Hi there, everybody. I'm Heidi Collins. Developments still coming into the CNN CNN NEWSROOM on this Wednesday, June 11.

Here's what's on the rundown.