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Landmark Ruling on Individual Gun Rights; North Korea Turns Over Secrets About Nuclear Program; Taking Part in Medical Studies

Aired June 26, 2008 - 11:00   ET

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

TONY HARRIS, CNN ANCHOR: And good morning again, everyone. You're informed with CNN.
I'm Tony Harris.

HEIDI COLLINS, CNN ANCHOR: Hi there, everybody. I'm Heidi Collins.

Developments keep coming into the CNN NEWSROOM on Thursday, June 26th. Here's what's on the rundown.

A landmark ruling on individual gun rights. The Supreme Court weighing in on the long-running debate over the Second Amendment.

HARRIS: North Korea finally spells out details of its nuclear program. Washington responds with a rewards package for the regime.

COLLINS: Young, handsome and well connected. An Italian financier arrested, accused of scamming millions. Follies with Mr. Follieri -- in the NEWSROOM.

HARRIS: And breaking news now from the Supreme Court. Justices have upheld the right to own a gun. The court strikes down a sweeping handgun ban in the nation's capital.

Justice Correspondent Kelli Arena outside the Supreme Court for us this morning.

Kelli, great to see you.

Again, a sharply divided decision coming from this court.

KELLI ARENA, CNN JUSTICE CORRESPONDENT: And this one, we expected to be sharply divided, Tony. It was a 5-4 decision. Basically, the justices said that it is a violation of a Constitution to tell D.C. residents that they could not own a handgun.

Very divisive here. There are people on both sides of this issue clamoring outside the Supreme Court. They were waiting and waiting for this decision, very highly anticipated.

Let me read a little bit of that ruling to you, Tony.

Justices say, "We are aware of the problem of handgun violence in this country, but the enshrinement of constitutional rights necessarily takes certain policy choices off the table. In plain English, D.C. officials said this is good policy. We have a violent crime problem here in the district, we want to restrict the amount of guns on the street.

Justices said, no, the Constitution trumps your right to make policy. But I will also tell you that the justices also say that that right is not unlimited. It's not a right that you can keep and carry any weapon whatsoever in any manner whatsoever.

And Tony, what this is referring to are those regulations that are in place to keep guns from the mentally ill, for example.

HARRIS: Yes.

ARENA: To keep a ban on assault weapons, to allow for background checks. As Justice Scalia pointed out, look, having a handgun in your home for protection is reasonable, but, you know, there are other things like an assault weapons ban that are also reasonable. So it's not like they're saying any and all guns. You know, it's a free for all, welcome to the Wild West.

HARRIS: Yes.

ARENA: What they're saying is that, look, a handgun, having a handgun, in your house for protection, which is what those D.C. residents wanted, the ones who came and joined the suit against that ban, he says that is reasonable.

HARRIS: Hey, Kelli, I've got to ask you, this has been a decades-long debate, the interpretation of the Second Amendment.

ARENA: Oh, yes.

HARRIS: You know, an individual's right to bear arms.

ARENA: Right, versus a militia right. Exactly.

HARRIS: Yes. So, I'm wondering, is it a bit of a surprise that it has taken this long for a case to finally get to the Supreme Court for this kind of a rule?

ARENA: Well, you k now, yes. I mean, a lot of people said, is this really the first time that the Supreme Court is ruling on Second Amendment?

HARRIS: Yes.

ARENA: Well, the answer is yes, it is the first time. And you know, I have it right here, and it does say -- and a lot of people -- you know, we all don't memorize our amendments.

HARRIS: Yes.

ARENA: But what it says is a well-regulated militia being necessary to the security of a free state, the right of the people to keep and bear arms. So, of course, people say, well, is it the right of the people or is it the right of the militia? The militia, of course, being things like a police force.

HARRIS: Yes.

ARENA: So, you know, which was it? You know? And finally, we've got decision today...

HARRIS: We do.

ARENA: ... from the highest court in the land. It's an individual right.

HARRIS: And at the moment it feels like it's settled law, because at the moment it is settled law. OK.

ARENA: Right. And this ban, you know, Tony, I'll tell you, on the streets here in Washington, people are asking, "What was the ruling? What was the ruling?"

HARRIS: Wow.

ARENA: Because this ban has been in place for 32 years.

HARRIS: That's right. That's right.

ARENA: Three decades. And, I mean, there are lots of people who passed us who weren't even born...

HARRIS: That's right.

ARENA: ... you know, when -- you know, without this ban in place. And, you know, so a really big day.

HARRIS: OK.

Our Justice Correspondent Kelli Arena for us this morning.

Kelli, as always, great to see you.

We're going to talk to our senior legal analyst Jeffrey Toobin in just a couple of moments.

COLLINS: Other breaking news to tell you about as well. North Korea turns over secrets about its nuclear program. The communist nation submitting its long-awaited nuclear declaration to China today. China led the six-nation talks. The U.S. is looking for details on North Korea's plutonium stockpile in that report.

North Korea has also promised to blow up a cooling tower at it's Yongbyon nuclear reactor tomorrow. In return, the reclusive Asian nation is to be removed from a U.S. list of states that sponsor terrorism. And some sanctions against Pyongyang are to be lifted.

A small handful of western journalists are in North Korea now for tomorrow's implosion at the Yongbyon reactor. CNN Chief International Correspondent Christiane Amanpour is one of them.

(BEGIN VIDEOTAPE)

CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT: I'm reporting to you from North Korean television, here inside the studio, with a backdrop, a painted backdrop of Pyongyang behind me. This is a very rare occurrence, and we are invited amongst a small group of journalists from the six parties who are party to these negotiations that are aimed at disarming North Korea.

Today, North Korea handed over its long-awaited nuclear declaration to China, the chairperson of the six-party talks. They handed it over in Beijing. And as far as we know, they handed over some 60 pages, the detail of its activities at its Yongbyon plutonium nuclear reactor.

In return, in a carefully-sequenced stage of events, President Bush has announced that he is telling Congress that he is rescinding North Korea's status on the U.S. list of states that sponsor terrorism. He's also rescinding some sanctions that have been imposed on North Korea under the trading with the enemy list.

Now, in return, on Friday afternoon, North Korea time, at Yongbyon nuclear plant, North Koreans are going to implode, collapse their cooling tower, the distinctive tower that is an important feature of the nuclear reactor. Experts are saying that this, coupled with the systematic disabling of the Yongbyon nuclear plant ever since last summer, is a giant step forward in ending all the activities at Yongbyon.

Yongbyon, don't forget, is where North Korea over the years has been extracting plutonium and has been able to make several nuclear devices with that plutonium. In October of 2006, it test-fired a nuclear device.

Now, after these months of negotiations, they have finally reached the end of what's known as stage two, phase two, of these negotiations. It will take another phase before North Korea is expected to deal with its weaponization program, to hand over any plutonium that it has extracted, including those that it's turned into nuclear devices, and to then dismantle, fully dismantle, Yongbyon.

In addition, they hope to be able in the future to probe any uranium enrichment activities North Korea is suspected of having engaged in and to ask North Korea about any proliferation. In other words, exporting its nuclear knowledge, expertise and material to any third country.

I'm Christiane Amanpour, CNN, in Pyongyang, North Korea.

(END VIDEOTAPE)

HARRIS: And there was quick reaction from President Bush moments after the country he once called part of an "axis of evil" turned over its nuclear secrets.

Live now to the White House and CNN's Kathleen Koch.

And Kathleen, reaction from not only the president, but also the national security adviser, Stephen Hadley, as well.

KATHLEEN KOCH, CNN CORRESPONDENT: Yes, indeed, Tony. And reaction did really come very quickly. It was barely an hour after North Korea turned over this long-awaited and really six months latest declaration to China.

The White House announced President Bush would come out in the Rose Garden and make a statement. And the president said that he welcomed this declaration. He called it a moment of opportunity for North Korea.

And as Christiane detailed, it's not only going to lay out, of course, in great detail North Korea's nuclear program, it's also supposed to give very verifiable information on how much plutonium it has. That critical, because that is the key ingredient in the bombs that it did test-fire back if October of 2006.

So the president optimistic in the Rose Garden today. And while he said that this proves that "tough multilateral diplomacy can yield promising results," he did say there's still a long ways to go.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We will hold them to account for their promises. And when they fulfill their promises, more restrictions will be eased. If they don't fulfill their promises, more restrictions will be placed on them.

This is action for action. This is, you know, we will trust you only to the extent that you fulfill your promises.

So I'm pleased with the progress. I'm under no illusions that this is the first step. This isn't the end of the process. This is the beginning of the process.

(END VIDEO CLIP)

KOCH: So certainly the restrictions that are eased do include the trade sanctions, U.S. trade sanctions. They're lifted. Also the removal from the list of states that sponsor terrorism. That will enable North Korea to get low-interest loans that it desperately needs from the World Bank, from other international lending institutions.

But the president says this does not mean that North Korea is no longer isolated. There are still United Sanctions against it, still other countries that have sanctions against it. And this morning, National Security Adviser Stephen Hadley said, if they don't come through, give the information, the access that we need to verify what it's stating in this declaration, then there could be new sanctions -- Tony, Heidi.

HARRIS: OK. Kathleen Koch at the White House for us.

Kathleen, good to see you. Thank you.

KOCH: You bet. COLLINS: A busy day for presidential candidate Barack Obama. This morning, he rallied voters in Pittsburgh. We showed you a little bit of that when it was taking place live. Later, he will round up lots of dollars in Washington.

And here's the twist. Former rival Hillary Clinton will introduce him to her top fund-raisers. In fact, money was a key theme today as he focused on the nation's sluggish economy.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: Just as we have to provide relief to Americans who are struggling, we also have to recognize that we are failing to put ourselves in a position compete effectively in the global economy. Our country faces challenges to our leadership in this young century. Our children will grow up facing competition from their counterparts in Beijing and Bangalore. If we don't change course, there's no guarantee that the American dream will be there for my daughters or your sons as it was there for us.

(END VIDEO CLIP)

COLLINS: Earlier this week Obama asked some of his top donors to help erase some of Clinton's campaign debt.

HARRIS: John McCain campaigning in heartland. Today and tomorrow he is in Ohio for town hall events and fund-raisers. Ohio is considered a key battleground state for the White House. When isn't it considered a key battleground? It is the Republican's first visit there since Barack Obama clinched his party's nomination.

COLLINS: A landmark Supreme Court ruling on your right to bear arms. We're going to talk about it with our senior legal analyst, Jeffrey Toobin.

(COMMERCIAL BREAK)

HARRIS: OK. More misery in the Midwest to tell you about. Can it get worse?

Rain again today in northern Missouri, just what they don't need there. The rain puts more pressure on an already fragile levee system in the community of Winfield. The latest deluge could cause a second round of crests along the swollen river in northern Missouri.

Twenty-two Missouri counties have been declared major disaster areas. The storms could also cause the river to crest at higher than expected levels in the coming days in Iowa, Minnesota and Illinois.

(WEATHER REPORT)

COLLINS: Your constitutional right to own a gun. The Supreme Court today finally settles the long-running debate over the Second Amendment.

(COMMERCIAL BREAK)

HARRIS: A growing international outrage over Zimbabwe's election crisis. Now leaders of other Southern African nations are urging Zimbabwe to postpone tomorrow's presidential runoff. Former South African leader Nelson Manuela is among those voicing grave concern.

(BEGIN VIDEO CLIP)

NELSON MANDELA, FMR. SOUTH AFRICAN PRESIDENT: We have sinned the outbreak of violence against fellow Africans in our own country, and the tragic failure of leadership in our neighboring Zimbabwe.

(END VIDEO CLIP)

HARRIS: Despite international condemnation, Zimbabwe President Robert Mugabe vows to move ahead on the vote. Now, the leading opposition candidate has withdrawn from the race.

U.S. beef heading back to South Korea. Seoul officially lifting its ban today. That's despite daily protests by Koreans worried about the safety of the mean. South Korea banned U.S. beef imports in 2003. A case of mad cow disease was discovered in the United States that year.

Under the deal, the U.S. will only ship beef from younger cattle considered at less risk. Now, before the ban, South Korea was the third biggest market for American beef.

COLLINS: Your body for rent? What researchers will do to get their hands on you. Elizabeth Cohen with the story.

(COMMERCIAL BREAK)

COLLINS: "Daily Dose" of health news now.

Aiming to get every adult in the Bronx tested for HIV, part of an ambitious plan being announced today by the New York City Health Department, tests will be offered on a voluntary basis for over three years. It will be given at designated sites, including emergency rooms, clinics and community centers. Health officials say the Bronx has the highest rate of AIDS-related deaths among New York's five boroughs.

HARRIS: Researchers want you, you, you. The medical world working hard to find study volunteers.

Pay us more.

It doesn't matter if you're sick or healthy. The question is, is it safe and what's in it for you?

CNN Medical Correspondent Elizabeth Cohen, as you can see, is here with more on this.

And you know what? We make significant -- I shouldn't kid -- we make significant medical advances through, you know, the ability to have people volunteer to take part in studies.

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: That's right. Absolutely. That's how science makes advances...

HARRIS: Yes.

COHEN: ... is they have people enrolled in studies. And more and more, we're going to see advertisements recruiting people for studies. I hear them on the radio, on my way home from work. In my doctor's office waiting room there are posters up saying, "Do you want to get involved in a study?"

So all of us can consider it because if you're sick, if you're healthy, it really doesn't matter. So if you want to join a study, here are some questions that you should ask.

First of all, what are the side-effects of the experimental treatment that they're studying? It may be not that dangerous. There may be potential for a great amount of danger. You need to ask that.

And also, what happened to other study subjects? Chances are you are not the first person that they will be trying this experimental study out on. You want to ask what happened to the other study subjects.

HARRIS: Yes.

COHEN: And what you really want to think about is you want to think about things in terms of pros and cons. The pros are that you will very well get paid to be in the study. You'll be helping mankind. You may even be helping your own health.

The cons are that it's an experimental treatment.

HARRIS: Yes.

COHEN: They don't know everything about it.

HARRIS: Well, let's go back to a point that I made and a point that you reinforced. How much money can you make here actually volunteering to be part of a study?

COHEN: You can make quite a bit of cash. I went online and I looked at various studies. And several of them pay hundreds of dollars -- $200, $300, $400, $500.

HARRIS: OK.

COHEN: I studies that will make you, like, $1,000...

HARRIS: Nice.

COHEN: ... if they check you into a hospital to observe you. So here's one place where they have a whole list of studies, and you can pick and choose which ones you want to see if you can join. HARRIS: Yes.

COHEN: So you can make some cash here.

HARRIS: Look, I'm OK with the idea. Let's just say -- let's just say I'm OK with the of being a bit of a guinea pig here. But I'm only OK with it if there is someone making sure the process is safe.

COHEN: And this is the most important point. Bioethicists really hammered this home with me.

They said, look, the people running the study, their objective is to get data. You come second.

I mean, sure, they're going to watch out for their safety, but really you come second. So you really need to make sure, go over it, talk to your own doctor about it, because with your own doctor, you come first.

HARRIS: Yes.

COHEN: With the study doctors, really in many ways you come second. So you have to keep that in mind. And the FDA oversees these studies, but they've been under a lot of criticism that they don't do the greatest job at overseeing them.

HARRIS: Knowing that the research doctors see me as coming in second here, I'm going to ask for a lot more money.

COHEN: There you go.

HARRIS: There you go.

COHEN: You can try that, too.

HARRIS: Try that.

All right, Elizabeth. Good to see you. Thank you.

COHEN: Thanks.

HARRIS: And to get your "Daily Dose" of health news online and to read Elizabeth's full column, log on to our Web site and you will find the latest medical news, a health library, and information on diet and fitness. The address is CNN.com/health.

Your constitutional right to own a gun. The Supreme Court today finally settles the long-running debate over the Second Amendment.

(COMMERCIAL BREAK)

COLLINS: Breaking news from the Supreme Court this morning regarding your right to own a gun. The high court struck down a sweeping handgun ban in the nation's capital in a sharply divided 5-4 ruling. The court said the D.C. handgun ban violates Americans' constitutional right to keep and bear arms. The ban was one of the strictest gun control laws in the country. Today's ruling settles the decades-long debate over whether gun ownership is an individual right.

HARRIS: Our Jeanne Meserve was inside the Supreme Court for the decision striking down the D.C. handgun ban. And she joins us live.

And boy, Jeanne, if you would, give us some of the -- some of the atmospherics.

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: Well, I can tell you, there's still quite a crowd gathered here outside the court. There is a lot of media lining the sidewalks. And up near the front steps you have members of Congress now at the mike, people who were very supportive of Mr. Heller in this suit which tried to oversee the D.C. handgun ban. There also were a few people out here with posters, most of them also on that side of the argument here.

As you said, a landmark decision here. The court, by a 5-4 decision, throwing out D.C.'s sweeping ban on handguns.

Justice Scalia was the one who read the decision from the bench. There has been some discussion about whether the Second Amendment applied to militias and the right to bear arms for use in militias, or whether it was individuals. He said unequivocally this has to do with individuals in this case.

However, importantly, he did note that the court did not mean to imply that anybody could have any kind of weapon any place. He said there still were a time and a place for limitations, for instance, on people who might be felons or mental health issues, on certain types of weapons, on carrying weapons into places like federal buildings, that all to be decided down the road by legislatures and we presume by other courts.

There was, however, a dissent read from the bench. This is not done in every case. I'm told maybe three or four times a year. It was Justice John Paul Stevens who delivered it today. He's usually quite a calm, collected and courtly gentleman.

There was a little tension in what he had to say, a little emotion. He felt that the majority was misguided in this case. He said there is no untouchable constitutional right to keep loaded handguns in the house in an urban area.

He said the court was wading into a political thicket here, one that it should stay out of. He said judicial restraint would be far wiser course of action on this issue. He said a true conservative would be siding with him on this case, not with the majority.

That clearly a jab at the conservatives on this court, including Justice Scalia. As to its practical effect, we expect to hear from D.C. officials shortly, but clearly this just throws out the window the D.C. ban on handguns, also a requirement that long guns in the house be disassembled or put -- have a trigger lock on them, that also gone here today.

There are other D.C. laws that may remain in effect. Both sides here trying to draw the positive out of this. Clearly it's a win for the people who supported the individual right to bear arms.

HARRIS: That's right.

MESERVE: Even with the limitations that the court suggested might be in play here. But people on the other side of this, people with Brady Handgun Alliance and so forth, also saying they saw some positive here because the court did say there was a place for limitations on handguns. They say we should work here for middle of the road, common sense handgun controls -- Tony.

HARRIS: All right. Jeanne Meserve just outside of the Supreme Court building in Washington, D.C., and Jeanne was inside the courtroom as that decision was taken. Jeanne Meserve, thank you.

MESERVE: You bet.

COLLINS: More now on this landmark Supreme Court ruling, upholding your individual right to own a gun. On the phone with us now to talk about it, the best guy we have, CNN senior legal analyst Jeffrey Toobin.

Jeff, nice to have on this, specifically, that's really what it's about, isn't it, the Constitution trumping policy here?

JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST: Well, this is just a big, big event in American constitutional history because the Second Amendment has been a true mystery. No one really knew for decades what it meant in practical terms. Now the Supreme Court, by and large, just 5-4 has said that there is a constitutional right to own a hand gun inside the home.

Now, that raises a lot of questions about the limits of this decision. I mean, how much gun control will be allowed? Certainly there is some. There was some discussion of military weapons. The court clearly is very concerned that there not be a constitutional right to own a surface-to-air missile. But how this gets translated into the real world is going to take many, many years.

COLLINS: Yes. Obviously that's the case. I mean, when we talk even more about it, it seems easiest to break it down by saying it's supposed to be about common sense. You heard Jeanne Meserve talking about that as well. Handguns in your home for self-defense, they're saying, is reasonable.

TOOBIN: It is, but common sense means very different things to very different people.

COLLINS: It's pretty subjective.

TOOBIN: It is very subjective. So it is going to be a struggle, I think, for the courts to tease out what the principle is that allows some sort of restrictions on some weapons while clearly giving people a core right to own handguns in their home.

For example, the whole question of regulation of sales of handguns, that's something that I think is very much left open by this decision. There's also the question of, what is a handgun? That is not necessarily an obvious thing.

So there's a lot to be understood here, but I think gun control supporters, as we're hearing today, there is a sliver of hope that they can cling to here because some restrictions clearly will be allowed.

COLLINS: Yes. Obviously. So what do you think is going to happen next? I mean, it sounds to me like you're saying this certainly isn't a done deal. There has got to be quite a bit more detail that is actually addressed in all of this. Could this get sent back to the lower courts now?

TOOBIN: Yes, absolutely. I think what you will see is in a lot of municipalities, mostly cities, because it is mostly cities that have handgun bans, you will see lawsuits filed saying, this rule, this local ordinance, is unconstitutional.

I expect several of these ordinances will be found unconstitutional. But then the communities that care about safety and communities that don't want the bad effects of guns will try to rewrite their regulations in line with what they think the court decided.

COLLINS: Right.

TOOBIN: That's where the new lawsuits will come from. And one thing is for sure, this will take years to sort itself out.

COLLINS: All right. Well, glad we have you for years to come. Jeffrey Toobin, our CNN senior legal analyst, thank you, Jeff.

HARRIS: So let's get more reaction now on the Supreme Court's ruling on gun ownership. Brooke Baldwin is at a gun store in Smyrna, Georgia, that is just outside of Atlanta.

Brooke, good to see you. What has been the reaction there at that particular gun store?

BROOKE BALDWIN, CNN CORRESPONDENT: Tony, as you can imagine, the mood after this ruling came down is celebratory. We've seen a number of people pour into the store here in Atlanta, and they're essentially saying, hey, it's my individual right now. The U.S. Supreme Court is now backing this. Granted, that pertained to D.C. But I met a woman just a little while ago and she literally came out to the store this morning just because she can, at least here in Georgia.

The whole centerpiece of this court controversy has been this, this is a handgun. And now people in Washington, D.C., the ban has been lifted. People can have these in their homes. And one man, even though we're down here in Georgia, thrilled with this decision is Jay Wallace, he's the owner of Adventure Outdoors here in Atlanta. You were clapping, what was it, an hour or so ago. This really just kind of boils down to your philosophy of gun ownership, you're thrilled because why?

JAY WALLACE, OWNER, ADVENTURE OUTDOORS: Oh, I'm thrilled. You know, first of all, I'm thrilled for the citizens of Washington, D.C., now they can join the rest of the country in enjoying the freedoms that we enjoy here in Georgia. And congratulations to them.

But this is not only a great day for them, this is a great day for the rest of the country. All freedom-loving Americans should be celebrating today.

BALDWIN: All right. Jay, thank you.

One such American who is also celebrating today, this is Bert.

Bert, you're a customer here at the store. You grew up in Atlanta, grew up handling guns. Why did you come out this morning?

BERT COLLINS, GUN OWNER: Well, I wanted to celebrate the opinion and maybe buy a gun today.

BALDWIN: Why is this important for you now that they've taken a look at the Second Amendment and they're saying, hey, it is the individual right, not a collective right, individual?

B. COLLINS: Well, that's what we felt all along as gun owners. It says -- the Second Amendment says the people have the right to keep and bear arms. And we're the people.

BALDWIN: All right. Well, thank you, sir. Thank you both. And again, this story could go down to a lower court. You heard Jeffrey Toobin talking about that. This has national ramifications, this will have a tremendous ripple effect, test cases. So we'll just have to wait and see how this plays out throughout the rest of the country. But obviously here in a gun store, Tony, you can imagine people are pretty happy.

HARRIS: Yes. Brooke Baldwin for us in Smyrna, Georgia. Brooke, good to see you. Thank you.

H. COLLINS: North Korea, has a nuclear stalemate been defused? Just hours ago the communist nation announced it has handed over long- awaited details of its nuclear program. That is a critical step toward dismantling it and easing international concerns that have been building for years. President Bush says he will call for the lifting of sanctions against the nation he once called part of the "axis of evil."

He will also move to take it off the U.S. terror list. But he adds North Korea will have to end its nuclear activities in a verifiable way.

(BEGIN VIDEO CLIP) GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: This could be a moment of opportunity for North Korea. If North Korea continues to make the right choices, it can repair its relationship with the international community, much as Libya has done over the past few years. If North Korea makes the wrong choices, the United States and our partners in the six-party talks will respond accordingly.

(END VIDEO CLIP)

H. COLLINS: The president also says the U.S. remains deeply concerned about North Korea's history of human rights abuses and is a continuing threat to its neighbors.

HARRIS: A dedicated -- we're going to have a little fun here. A dedicated Cubs fan gets her wish. She throws out her first pitch. Remember this from a day or so ago? There she is! Loretta Dolan, 93 years old. Hi, Sandy, good to see you..

SANDY MARTIN, DOLAN'S DAUGHTER: Hi.

HARRIS: We will talk with her about her big league moment, that is coming up in just a moment here in the NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: You know, he dated a movie star, hung out with a president, even claimed to know the pope. But one man's high life came crashing down after allegations of fraud.

CNN's David Mattingly reports.

(BEGIN VIDEOTAPE)

DAVID MATTINGLY, CNN CORRESPONDENT (voice-over): It's a mix worthy of a best-selling work of fiction, a former president, a billionaire friend and a leading actress all connected an Italian financier who claimed he was tight with the pope. But federal prosecutors say financier Rafael Follieri, who rubbed elbows with Bill Clinton, and dated summer blockbuster star Anne Hathaway, was living a posh life built on lies and the money of others.

(on camera): Now targeted for fraud and money laundering, the 29-year-old Follieri is accused of scamming over $1 million from real estate investors claiming he was the chief financial officer for the Vatican, and able to purchase church property under market value.

(voice-over): Instead, he allegedly used investor money to pay for a $37,000-a-month Manhattan apartment. There were also expensive gifts, meals, medical bills, and trips with his former girlfriend.

DAVID CAPLAN, PEOPLE MAGAZINE: Follieri also really used Anne Hathaway's celebrity to gain access to a lot of these investors that he wanted to work with. Many times she was at many of the events together. They vacationed together. And she was really essentially a magnet for him to meet the likes of Bill Clinton, Oscar de la Renta, and all of these other really players in the industry that he wanted to meet.

MATTINGLY: The "Wall Street Journal" reported Follieri used his connections to meet the former president and paid Clinton aide Doug Band $400,000 to help meet deep-pocket investors, including Clinton's close friend, billionaire Ron Burkle. Burkle's investment company reportedly sued and settled with Follieri last year for allegedly pocketing $1.3 million in company money.

Burkle's company is not mentioned in the federal complaint against Follieri, neither is the former president, nor his aides, nor is Anne Hathaway.

FLORA EDWARDS, FOLLIERI ATTORNEY: I think being arrested is a traumatic experience for anyone, and I think he is certainly traumatized, as would be natural.

MATTINGLY (on camera): Follieri remains in federal custody. The court is seeking a $21 million bond. His attorney tells CNN he is not guilty. We reached out to representatives of Bill Clinton and Anne Hathaway. We haven't received a reply.

David Mattingly, CNN, Atlanta.

(END VIDEOTAPE)

H. COLLINS: Yikes. Feel like we need to show you this before we take a quick break here, 212 to the negative. Dow Jones Industrial Average is there, that's the Big Board. We are following it. We're going to talk with CNN's Susan Lisovicz, tell us what the heck is going on in just a moment.

(COMMERCIAL BREAK)

H. COLLINS: Once again, the Dow Jones Industrial Average, as we've been showing you, the Big Board, we're looking at it again, down a couple of points more than the last time we spoke, about oh, a minute-and-a-half ago, down 213 points, resting now at 11,597. Susan Lisovicz is standing by at the New York Stock Exchange with a little bit more on what on earth is happening here.

Susan, boy, we're down about 100 more points than the last time we talked to you.

SUSAN LISOVICZ, CNN CORRESPONDENT: That's right, Heidi. Actually, the Dow Industrials right now are trading pretty close to two-year lows. It's sharp sell-off. There's no shortage of culprits. Financial stocks, for instance, are tumbling on downgrades about consumer credit, the need to raise capital, and the slowing economy.

In the Dow 30 there are five financial stocks. They are each down at least 2 percent. There have also been downgrades in auto stocks for similar reasons. Check out GM shares, plummeting 11 percent. Now it's trading at $11 and change. To the best of our knowledge, we've never seen GM share price that low.

And the Dow hasn't closed below 11,700 since October of 2006. There you see the Big Board, 213 points, that is a loss of nearly 2 percent. The Nasdaq is down more than 2 percent. Broader S&P 500 is down 2 percent. For every stock rising today at the NYSE, there are three stocks to the downside.

And I didn't mention oil. Oil prices right now are up nearly $4. Yes, $4. So...

H. COLLINS: What happened to my glass half full girl?

LISOVICZ: Well, we did get that GDP report that came in slightly better than expected and also existing home sales came in a tad better than expected. But bulls just can't get it together today.

H. COLLINS: All right. Well, thank you, Susan. We'll be watching those numbers throughout the day, that's for sure. Appreciate it.

LISOVICZ: Oh, you got it.

H. COLLINS: We're also watching this. On the mound for her beloved Chicago Cubs. We're talking live, 93-year-old Loretta Dolan. There she is, a great Cubs fan, coming up in the NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: Wow, look at this. It is a devoted baseball fan's dream, the chance to throw out that first pitch. The dream came true for 93-year-old Chicago Cubs fan Loretta Dolan Tuesday night at Wrigley Field. She fired an underhand slider to the home plate before the Cubs took on the Orioles. Loretta Dolan is with us from Chicago along with her daughter Sandy Martin.

Loretta, good to see you. Sandy, good to see you.

MARTIN: Hi. How are you?

LORETTA DOLAN, CHICAGO CUBS FAN: Hi.

HARRIS: Well, I'm great. Thanks for asking. Loretta, let me start with you, lady of the day, lady of the hour. Would you describe for me that experience walking out onto Wrigley Field and throwing out that first pitch. What was it like for you?

DOLAN: Oh, that was wonderful. I hope it can happen again.

HARRIS: No. Really? Would you do it again?

DOLAN: Oh, sure I would. Yes. Now I'm more familiar with it.

HARRIS: Now you're familiar with it. Were you nervous? I mean, that's a pretty heady process. Were you nervous?

DOLAN: Oh, of course, of course, because I was doing so much practicing. And I thought, I don't know how them pitchers can pitch that ball so fast, and how many pitches they throw in a day. I says, I just threw a couple of pitches, and my arm hurted. (LAUGHTER)

HARRIS: What was your consideration? Did you think about throwing it overhand and then decide, you know, my best chance of getting it to home plate was to throw it underhand?

DOLAN: No, no. I never pitched a ball before, and this was my first time, so I rather think I was throwing a bowling ball. And this way I knew I had to throw it higher than on the...

HARRIS: Hey, Loretta, I think I saw a picture -- did you get a smooch from a couple of the ball players? What was it like to meet your beloved Cubbies?

DOLAN: Oh, isn't it wonderful?

HARRIS: So you like the smooching part, huh?

DOLAN: And then to have my pictures taken with them. That was wonderful.

HARRIS: Hey, Sandy, were you nervous for your mom? How did she hold up? I think she did great.

MARIN: Oh, she did wonderful. And my nephew, her grandson, Dennis (ph), he arranged it all for her.

HARRIS: How did that happen? Was it an online process?

MARTIN: Yes. He became aware of an online auction, and he was the highest bidder and he won. And that was something that he wanted his grandmother to do.

HARRIS: Well, Loretta, we're going to try to see if we can get you back out there and throw out another pitch there for your beloved Cubbies. And what do you think? It has been so long since the Cubs have even been in the World Series, longer yet since the Cubs have won the World Series. What do you think about the team's chances this year?

DOLAN: Oh, I hope they do. I hope they do.

HARRIS: Yes, they look great so far.

DOLAN: We just say a prayer that they do.

HARRIS: There you go. My lips -- your lips to God's ears that the Cubbies have performed well, get to the World Series. This is the year. Everyone seems to believe it, Lou Piniella doing a nice job with that ball club.

DOLAN: Yes.

HARRIS: Loretta, good to see you. Good to see you. And, Sandy, good to see you as well. And hold up that baseball for us.

MARTIN: Thank you very much.

HARRIS: There it is, signed by all your beloved Cubbies, huh?

DOLAN: Yes...

(CROSSTALK)

MARTIN: Well, this was signed by Sean Gallagher. We have another ball that Ron Santo, Randy Hundley, and Glenn Beckert signed for her. It's Cubs -- the Cubs organization is just a great organization.

HARRIS: Well, you're terrific. You are absolutely terrific. And thank you both for taking the time to be with us this morning.

DOLAN: Oh, appreciate this.

MARTIN: Thank you.

H. COLLINS: Love it. Love it. Well, you've heard of the Internet, but one presidential candidate may still have some questions.

(COMMERCIAL BREAK)

H. COLLINS: Your cell phone, BlackBerry or computer may be your lifeline with the outside world, but not so for John McCain.

CNN's Jeanne Moos reports.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): We don't expect the president to be the Liberace of the keyboard, but still...

(on camera): ... shouldn't the next president of the United States know how to work a computer?

UNIDENTIFIED FEMALE: Yes.

UNIDENTIFIED CHILD: I mean, yes. I guess so. It would be helpful. Why not?

MOOS (voice-over): Ask John McCain. Here's how he describes his computer skills.

SEN. JOHN MCCAIN (R-AZ), PRESIDENITIAL CANDIDATE:: I am an illiterate that has to rely on my wife for all of the assistance that I can get.

UNIDENTIFIED FEMALE: Oh, that's absolutely ridiculous.

UNIDENTIFIED FEMALE: It's the 21st Century and he should know how to do it.

UNIDENTIFIED MALE: He has people to do that. He has got to be thinking of more important things.

MOOS: While Cindy McCain has been spotted scrolling her BlackBerry, John McCain tends to be handed a BlackBerry to talk on.

Barack Obama, on the other hand, is one of those guys so intent on reading his BlackBerry that he could run into something. He is a BlackBerry fiend, says his spokesperson, has a laptop on the road and sometimes uses it to talk to his daughters and surfs the Web when he's in need of important information, such as sports scores.

A far cry from this guy...

BUSH: I hear there's rumors on the Internets.

And one of the things I've used on the Google.

MOOS: Just the other day, President Bush did it again.

BUSH: They can go on their computers and dial up the volunteer.org.

MOOS: At least John McCain has instilled dialing up and he knows to leave off the "the."

MCCAIN: I guess you could do on Google.

MOOS: But McCain's admission that he's computer illiterate was fodder for debate at something called the Personal Democracy Forum. The online expert who had worked for John Edwards got into it with the Internet expert from the McCain campaign.

UNIDENTIFIED MALE: Yes, yes. But you don't necessarily have to use the computer to understand how it shapes the country and I think he has a...

UNIDENTIFIED FEMALE: That's -- that's the point, though. You do.

MOOS: But when McCain's guy said this...

UNIDENTIFIED MALE: John McCain is aware of the Internet.

MOOS: "John McCain is aware of the Internet" became a joke on the Internet.

(on camera): But do we really want a president who sits around the Oval Office Googling all day?

(voice-over): This 74-year-old likes to Google.

UNIDENTIFIED FEMALE: I mean, this is such an easy thing to learn. I taught myself how to use the computer.

MOOS (voice-over): At least John McCain...

UNIDENTIFIED MALE: Taking laptop computers with them. MOOS: ...knows the difference between a laptop and a lap dance, even if jokesters made a mockup of McCain's real Web site with: "How does this thing work?," and "Should I double click here?"

Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

H. COLLINS: CNN NEWSROOM continues one hour from now.

HARRIS: "ISSUE #1" with Gerri Willis starts right now.