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Suspect in Two-State Killing Spree in Court Soon; Fugitive Hedge Fund Manager Turns Himself In; Detroit Mayor's Problems May Cost Mom Politically

Aired July 02, 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 this Wednesday, the 2nd day of July. Here's what's on the rundown now.

New video. Police say he bludgeoned eight people. A suspect in a two-state killing spree in court soon.

HARRIS: Breaking news. A fugitive hedge fund swindler turns himself into police this morning.

COLLINS: A nationwide salmonella outbreak blamed on tomatoes. But is another edible the culprit? Food detectives want to know -- in the NEWSROOM.

We are following some breaking developments out of Massachusetts this morning. Police confirming fugitive hedge fund manager Sam Israel III turned himself in this morning in Southwick, Massachusetts.

Israel disappeared last month on the day he was supposed to report to federal prison. Authorities found his car on a bridge over the Hudson River north of New York City. The words "Suicide is painless" were scrawled in dust on the car.

Israel was sentenced to 20 years in prison for bilking investors out of $450 million. And we are going to be covering this story. Major breaking news this morning regarding Sam Israel. We'll bring more to you just as soon as we get it.

HARRIS: And new pictures to share with you in this story. Eight people beaten to death in a two-state killing spree. A suspect arrested and expected in court today.

Susan Roesgen is in Granite City, Illinois, where the suspect is being held. And Susan, as of just moments ago, a suspect on the move.

SUSAN ROESGEN, CNN CORRESPONDENT: Absolutely, Tony.

We tried to get Nicholas Sheley, 28 years old, to say something. Maybe to get some comment from this suspect in eight murders here as the police moved him from the jail here in Granite City, Illinois, about 15 miles away to the jail in Edwardsville, Illinois.

It is in Edwardsville now where apparently he will be arraigned. That is a bigger courthouse, a bigger jail in that area. And that's where he will make his first court appearance, we understand, later today and enter a plea.

No comment from him today. Just a stern look on his face as they walked him into the squad car and sent him on his way to Edwardsville. This man now is under two separate murder arrest warrants and he is under a $10 million bond.

(BEGIN VIDEOTAPE)

ROESGEN (voice over): Whoever killed these people was desperate and had nothing left to lose. That's what investigators say about Nicholas Sheley, arrested on a warrant, charging him in one murder, and he's suspected of seven more.

Among the most recent killings, detectives believe Sheley used something as a weapon -- they won't say what -- to attack an Arkansas couple in Festus, Missouri. The husband and wife were in town for a graduation party. Detectives say Sheley beat them to death in their hotel parking lot. The couple's dogs attracted attention.

UNIDENTIFIED MALE: A customer of the hotel came in and found two dogs on the parking lot. Both dogs were covered in blood.

ROESGEN: In just one week, eight people were found murdered in what detectives say was a one-man killing spree stretching nearly 300 miles. The first killing was in Whiteside County in Sterling, Illinois, toward the north. The Festus, Missouri, murders were near St. Louis, to the south.

In Galesburg Illinois a man was killed behind this grocery store. A gas station clerk nearby says he spotted a man who looked like Sheley covered in blood.

Rock Falls, Illinois, three adults and one child killed in this small apartment. And in Sterling, Illinois, a 94-year-old man beaten to death. His body stuffed in the trunk of a car.

UNIDENTIFIED MALE: A nice old man. He didn't hurt nobody or nothing.

ROESGEN: The last time anyone saw Sheley was Monday night at Busch Stadium, where the Cardinals were playing in St. Louis. He was arrested not far from there in Granite City, Illinois, with a $25,000 bounty on his head.

(END VIDEOTAPE)

ROESGEN: Now, one thing we don't know yet, Tony, is whether or not anyone will collect that $25,000 reward for information leading to his arrest. We understand that he was arrested while he was smoking a cigarette outside of a bar here in Granite City, a town of about 35,000 just outside of St. Louis, last night. Again, we don't know whether someone will receive the money for making a tip to the police. We also don't know yet, Tony, whether he has a lawyer. He may have a court-appointed lawyer today. And, of course, we will wait to hear his plea and his arraignment.

HARRIS: And Susan, very quickly, where is this first court appearance being held again?

ROESGEN: It's in Edwardsville, Tony.

HARRIS: OK.

ROESGEN: Edwardsville, Illinois. That's a bigger town with a much bigger courthouse where they believe that they'll be better able to handle not only the media, but also the different arrangements that will have to be made for this very serious case.

HARRIS: So you suspect there will be pictures of this hearing at some point today?

ROESGEN: No. Actually, we don't...

HARRIS: OK.

ROESGEN: ... because that's not allowed in Illinois courtrooms. So we won't be able to have a camera in the court. Certainly we will be inside to bring you the details when and if it does happen today.

HARRIS: Susan Roesgen for us in Granite City, Illinois. Susan, appreciate it. Thank you.

COLLINS: Texas authorities believe they have caught the person responsible for six random roadway shootings. We talked just a short time ago with a police spokesman in Garland, Texas, who confirmed the arrest.

(BEGIN VIDEO CLIP)

JOE HARN, GARLAND, TEXAS, POLICE: Yes. We took a 22-year-old male in custody last night about an hour and a half after his last shooting, which was at a restaurant where he drove up into the parking lot, got out, walked up towards the restaurant, and fired into the wall just below the glass where the restaurant was fairly well occupied. Very close to where he had just done a shooting two days ago, one of the first shootings that he had done.

(END VIDEO CLIP)

COLLINS: One of the latest shootings happened yesterday in Plano, Texas. Other shootings were reported in Garland, Mesquite and Richardson. For the victims it was a frightening ordeal.

(BEGIN VIDEO CLIP)

MIGUEL MARALRIO, WITNESS (through translator): A car turned on to Jupiter. He started shooting. I didn't know who he was shooting at.

My truck got hit. I was very scared. So was my family. We just dedicate ourselves to work. I don't have any problems with anybody.

(END VIDEO CLIP)

COLLINS: The suspect faces charges of aggravated assault, endangering a child and deadly conduct. A 4-month-old baby was inside one of the cars that was targeted. The baby was not hurt, but at least two people were injured in the shootings.

Quickly want to get back to this story we've been telling you about, breaking news now. CNN confirming the arrest of Sam Israel III. He was the Wall Street financier, former manager of Bayou Group hedge fund, who pleaded guilty back in 2005 -- you see his picture there -- of defrauding investors of about $450 million.

He then faked his suicide, according to authorities. On the day he was to go to federal prison, that was June 9th, it happened on Bear Mountain Bridge near the Hudson River there. He left his car there, along with a note that was written in dust on the vehicle saying, "Suicide is painless."

Want to take a moment to go to Ross Intelisano, the attorney for 20 of the clients defrauded by Sam Israel. What is your reaction to this news?

ROSS INTELISANO, ATTORNEY FOR DEFRAUDED CLIENTS: The investors are very pleased that he turned himself in and they are relieved that Israel will start serving his debt to society.

COLLINS: Tell us more about how he -- how he pulled this off.

INTELISANO: He ran a scheme for approximately nine years, and then got caught because he was sending out false statements. And how he got caught today, it seems he just turned himself in. You know, he's had serious medical problems. And I wonder if he sort of ran out of medicine.

COLLINS: Yes. In fact, that was going to be part of his sentence. He would be reporting to some type of medical facility as well, right?

INTELISANO: Yes. That was one of the reasons why he did not go straight to jail after he was sentenced to 20 years.

COLLINS: Yes. And we're talking about severe back pain?

INTELISANO: He's had nine back surgeries. Serious back surgeries. He also has heart problems and had a pacemaker. And he's only 48-years-old.

COLLINS: Yes, he is 48-years-old. That's true.

I mean, you're an attorney. Tell us what's going to happen next here. INTELISANO: He will be brought back to New York very likely and will, unfortunately for him, have to go back to the judge, who will have to make a decision on whether or not they want to potentially charge him with other crimes or maybe change his sentence.

COLLINS: What about your clients? Are they going to get any of their money back?

INTELISANO: Our clients are expected to actually receive their first payment from the government, which found $100 million in this fraud, very soon. They will likely get anywhere between probably a third and 50 cents on the dollar back.

COLLINS: All right. Well, we appreciate you helping us out with this one.

Ross Intelisano, who's the attorney for 20 of those clients that were defrauded by Sam Israel, who, once again, want to remind you of the story we're covering, breaking news. Sam Israel has been arrested, according to federal authorities, Southwick, Massachusetts. It happened today. He turned himself in. So we are watching this story throughout the day here.

HARRIS: The National Guard being mobilized to help fight fires in California. They're expected to join around 19,000 firefighters sometime next week. It is the first time the guard will be used on the ground in more than 30 years.

Air quality, a major problem right now in northern California. You can see just how thick the smoke is. People are being told to stay inside as much as possible. And schools in some communities have canceled outdoor activities altogether. New evacuations have been ordered near Big Sur. That fire has already burned 47,000 acres of forest and several homes.

COLLINS: Hate seeing those pictures, too.

(WEATHER REPORT)

COLLINS: To Jerusalem now. A horrific scene in the streets there.

The BBC captured these pictures just after a bulldozer rammed a bus and several other vehicles. Three people are dead, more than 40 others injured. Israeli police say it was a terrorist attack. They say the bulldozer driver was a Palestinian resident of Jerusalem who acted alone.

HARRIS: Food detectives following the tomato trail. But the search for a salmonella link may lead them down another garden path.

(COMMERCIAL BREAK)

COLLINS: John McCain wraps up his stop in Colombia today before heading to Mexico. McCain met with Colombia's president, discussing illegal drugs, improving relations and free trade. (BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: Free trade is an important issue not only for Colombia, but I believe for the economy of the world. And as you know -- for the United States economy -- as you know, I have strongly supported education and retraining programs for our displaced workers who have faced the challenges that America's economy is undergoing as we speak.

(END VIDEO CLIP)

COLLINS: McCain and President Bush both support a new trade agreement with Colombia. Barack Obama sides with congressional Democrats who have blocked the deal over concerns about violence against labor leaders.

Obama was in Ohio calling on faith-based groups to step up. He praised earlier initiatives put forth by President Clinton and President Bush.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: I know there's some who bristle at the notion that faith has a place in the public square. But the fact is leaders in both parties have recognized the value of a partnership between the White House and faith-based groups.

(END VIDEO CLIP)

HARRIS: You know, sons have been giving their mothers headaches since the beginning of time.

Sorry, mom.

But this time a son's legal problems could cost both him and his mom their political careers.

CNN's Joe Johns explains.

(BEGIN VIDEOTAPE)

JOE JOHNS, CNN CORRESPONDENT (voice over): What's a mother to do? This is the mother, Representative Carolyn Cheeks Kilpatrick. She's a fighter. She's well respected. The chairwoman of the Congressional Black Caucus. She's up for re-election, but she has a unique problem.

REP. CAROLYN CHEEKS KILPATRICK (D), MICHIGAN: I've done polling and yes, it has impacted. I am ahead and now we're going out.

JOHNS: And this is, well, her problem: son and mayor of Detroit, Kwame Kilpatrick.

MAYOR KWAME KILPATRICK (D), DETROIT: I look forward to complete exoneration once all the facts surrounding this matter have been brought forth. JOHNS: If you have missed the headlines about his case, here's the thumbnail. He's going to court in September accused of conspiracy, obstructing justice and lying to a jury. The case is partly about the firing of a police officer who was investigating alleged misconduct by the mayor and his bodyguard.

But Kwame Kilpatrick is also charged with lying about an alleged extramarital relationship with his chief of staff. In January, he made a public apology to his wife and spoke of his profound embarrassment. That, after the "Detroit Free Press" newspaper published text messages between the mayor and the staffer.

In this one, the mayor allegedly wrote, "I've been dreaming all day about having you to myself for three days -- relaxing, laughing, talking, sleeping, making love." And if that's not enough, Mayor Kilpatrick state of the city address took it to a whole new level.

K. KILPATRICK: I've been called a (EXPLETIVE DELETED) more than any time in my entire life. I've heard these words before, but I've never heard people say them about my wife and children.

JOHNS: So that's the son's story.

As for the mother, in her last election the Detroit congresswoman didn't even have an opponent in the primary. This time around, she's in a nasty fight.

Ex-state Representative Mary Waters, one of her rivals, ran this ad using a three-year-old clip of Congresswoman Kilpatrick defending her son, the mayor.

C. KILPATRICK: You all sent him up in here! Don't let nobody talk about y'all's boy! Too many people died for us!

UNIDENTIFIED MALE: Sorry, Congresswoman, but we deserve better than "y'all's boy."

JOHNS (on camera): The current consensus in Washington is that the mother will survive the troubles of the son. But one seasoned observer of African-American politics agrees there is potential for blowback.

RON WALTERS, UNIVERSITY OF MARYLAND: Well, I see some, because she's a mother. And she's been very close to her son, both as a mother and the mayor of the city of Detroit. But on the other hand, she has such a solid record in the House of Representatives, and is so beloved in her constituency, that I wouldn't think that all of his problems would naturally devolve to her.

JOHNS (voice over): Time is on her side, too. Thee primary in the heavily-Democratic districts comes the first week of August, well before the start of her son's trial.

Joe Johns, CNN, Washington.

(END VIDEOTAPE) COLLINS: Food detectives following the tomato trail. But the search for a salmonella link may lead them down another garden path.

(COMMERCIAL BREAK)

COLLINS: So do you remember what you paid for gas a year ago? Wish you could pay the same price about now? A new Web site makes it possible for next year.

CNNMoney.com's Poppy Harlow has our "Energy Fix" from New York. What is this like, the forever stamp, Poppy?

POPPY HARLOW, CNNMONEY.COM: I know. This is a pretty cool idea. I think it's really going to help some people out there. I hope it will.

A lot of airlines, folks, and other large companies do this all the time. They buy gas at today's prices to guard against higher prices in the future. And now drivers in the U.S. can do the same thing.

A new Web site called mygallons.com lets people buy as much gas as they want at today's price, then redeem the gas at a later date. Now, the company gives drivers a debit card that is accepted at 95 percent of the gas stations in this country. Today, the average for gas here, above $4.09 a gallon. A new record high.

So, Heidi, if people had been able to do this a year ago, when prices were averaging around $2.95, it would have saved them about $1.14 per gallon. That's a fix.

COLLINS: There's this saying, I don't know if you've heard it, but hindsight is 20/20 or something like that.

HARLOW: 20/20.

COLLINS: Yes.

HARLOW: And some things are too good to be true.

COLLINS: Yes. There's lots of things that would apply here. It's one of those deals though that sounds a little bit too good to be true.

HARLOW: Yes, of course. In some ways it is.

There are some fees associated with this program. There's a $30 to $40 annual membership. It also costs $1.95 to pre-purchase gas. That processing fee applies.

So, in order for this to be a real energy fix, you need to consider how often you will use this service. For example, if you only buy 10 gallons worth of gas, the processing fee will add nearly 20 cents per gallon. And keep in mind the money will be tied up, not making any money in the stock market or earning interest in your bank account. So it really only makes sense for you if you drive a lot and if you believe that gas prices are going to continue to rise sharply.

And remember, even though, Heidi, that's what we've seen lately, there's really no guarantee of that. So you could even lose some money.

COLLINS: Yes, sure. In fact, what does happen if gas prices go up to some exorbitant amount per gallon? Companies go out of business.

HARLOW: Yes, exactly. And we asked the CEO of mygallons.com. We asked him that, and he said he's placing bets in the oil futures market right now to offset price increases. And he says the money is kept in an escrow account.

So in the case of bankruptcy, people would still get their money back. But you're right -- buyer, still beware. But this is just such a neat idea. This is one Web site that does it, and I bet, Heidi, we see a lot more of them popping up.

COLLINS: Yes, I bet you're right. Speaking of -- thanks, Poppy.

HARLOW: You're welcome.

COLLINS: Appreciate it.

HARRIS: Ignored in the emergency room. A woman struggles for life. Why didn't anyone, anyone help?

(COMMERCIAL BREAK)

HARRIS: And branching out from a tomato vine, food experts looking for a salmonella link are expanding their search to other garden varieties.

Our medical correspondent, Elizabeth Cohen, has the latest. How long have we been talking about this now?

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: Weeks.

HARRIS: Yes.

COHEN: Weeks and weeks. And you know what? It's not going anywhere.

HARRIS: No.

COHEN: I mean, 870 people have gotten sick. And the FDA says they fully expect to see more people getting sick. And a state official tells CNN that now they're looking at more than just tomatoes as the possible source for this rare form of salmonella.

They're also looking at cilantro, at lettuce, and at jalapenos. And the reason why is that when they interviewed people who got sick, they said, well, what else were you eating besides the tomatoes? And so those are some of the ingredients that they mentioned.

Now, I should say, though, tomatoes still the lead culprit in this investigation. But big tomato of interest.

HARRIS: Yes, exactly. But what is the difficulty here, Elizabeth, in getting to the bottom of this and finding the source of the contamination?

COHEN: You know what? Tomatoes lead very busy lives. I had no idea until I started interviewing people.

HARRIS: Explain, please.

COHEN: OK. A tomato might be born in the U.S., but then sent to Mexico to join other tomatoes, and then shipped back to the U.S. to be sold here again. Tomatoes are picked from the fields. They then go to processing houses. They are touched by many different people. They're washed in water that comes from many different sources. Sometimes the water is the source of these food-borne illnesses.

HARRIS: Yes.

COHEN: There are so many different places they can get sick. That's the problem.

HARRIS: So maybe it would be a pretty good idea to review the list of what tomatoes are good and which ones aren't so good.

COHEN: Right. The OK tomatoes and the not OK tomatoes.

HARRIS: Yes.

COHEN: OK. Let's take a look. And this is all from fda.gov. You can go there and see some pictures yourself.

Cherry tomatoes, those little round ones, the grape tomatoes, even smaller, tomatoes with vines still attached and homegrown tomatoes, those are OK. The FDA says those are OK.

The ones that are not OK are Roma tomatoes and red plum tomatoes. They're sort of more of an oval shaped tomato. It's two different names for the same tomato. And also red round. Red round tomatoes not good.

HARRIS: Well, I've got to get to the bottom of this because I know a lot of folks who are just sort of cutting tomatoes out of their diet right now. And that industry is really getting decimated.

COHEN: Oh, absolutely. Absolutely.

HARRIS: And it may not be the culprit at the end of the day.

COHEN: It may not be. Still the lead suspect, but, right, may not be.

HARRIS: OK, Elizabeth. Good to see you.

COHEN: OK. Thank you.

HARRIS: Thank you.

And to get your "Daily Dose" of health news online, log on to our Web site. You will find the latest medical news, a health library and information on diet and fitness. Here's the address: cnn.com/health.

COLLINS: Heading to court today, an accused killer. Police count eight victims over two states in less than a week.

(COMMERCIAL BREAK)

HARRIS: Good morning again, everyone.

We are following breaking developments out of Massachusetts. Police confirm that fugitive hedge fund manager Sam Israel turned himself in this morning in Southwick, Massachusetts. Israel disappeared last month on the day he was supposed to report to federal prison. Authorities found his car on a bridge over the Hudson River north of New York City and the words suicide is painless were scrawled in dust on the car. Israel was sentenced to 20 years in prison for bilking investors out of $450 million.

COLLINS: Left to die. Disturbing video leading to the promise of reforms at New York psychiatric hospital.

CNN's Mary Snow has more.

(BEGIN VIDEOTAPE)

MARY SNOW, CNN CORRESPONDENT (voice-over): Had it not been for a surveillance camera inside the psychiatric emergency room at Brooklyn's Kings County Hospital, we may never have known what happened to 49-year-old Esman Green in the moments before she died. As she struggles on the floor several people walk by but no one does anything to help her. It takes nearly an hour before a medical team arrives to treat her.

The New York Civil Liberties Union released this videotape showing Green falling to the floor in the emergency room around 5:30 on the morning of June 19th. About 20 minutes later a security guard comes into view.

VOICE OF BETH HAROULES, NYCLU STAFF ATTORNEY: He walks in. He stands there. We actually think there's a television up on the top and he's looking at the TV. But he's clearly got the patient in view and he walks away.

SNOW: Green was in the ER waiting for a bed to become available. At one point the woman can be seen struggling to free herself from the chairs. And at another point she appears to make an effort to get up. A copy of her medical records contradicts the tape, listing her at the same time as being awake, up and about, even going to the bathroom. At about 6:10 a.m., lawyers say, a second security guard enters the room.

HAROULES: Here he comes into the room. Checks her out. He can't even get himself off his chair. He sits there and then you'll see him wheel himself away.

SNOW: Finally around 6:30 a.m. medical personnel arrive. Green is later pronounced dead. The New York City Health and Hospitals Corporation released a statement saying, "We are shocked and distressed by the situation." Adding that after it learned of the incident, the agency's president "directed the suspension and termination of those involved." The city's mayor says the city will do everything it can to cooperate with the investigation.

MAYOR MICHAEL BLOOMBERG (I), NEW YORK: I was horrified is much too nice a word. Disgusted I think is a better word.

SNOW (on camera): This is not the first time the psychiatric unit at Kings County Hospital has been targeted. Advocates for the mentally ill filed a lawsuit in federal court in 2007 calling this a, quote, "Shameful place with horrendous conditions." That suit is still active.

The city's Health and Hospitals Corporation says it has put in place a number of reforms and continues to do so. Including checking on patients in the psychiatric unit every 15 minutes.

Mary Snow, CNN, Brooklyn.

(END OF VIDEOTAPE)

HARRIS: Eight people beaten to death in a two-state killing spree. A suspect arrested and expected in court today. Authorities captured Nicholas Sheley last night in Granite City, Illinois, after an intense man hunt. He's being moved to Edwardsville, Illinois, for his court appearance.

This is new video just moments ago. Sheley is charged with one murder and suspected in the other seven. Two of the victims were in Missouri, six in Illinois. Authorities say Sheley's alleged killing spree spanned 300 miles. The FBI issued a warning that he was armed and dangerous with a history of violence.

Fighting wildfires in California. There are as many as 1,000 fires burning right now. This is new video of a growing wildfire in southern California near Santa Barbara. Boy, beautiful country. Residents have been ordered to evacuate. Governor Arnold Schwarzenegger has called in the National Guard to help. The first time they've been used on the ground in more than 30 years.

Earlier, we talked with Daniel Berlant with Cal Fire.

(BEGIN VIDEO CLIP)

VOICE OF DANIEL BERLANT, CAL FIRE: Cal Fire does work closely with the California National Guard for their aerial resources. Their helicopters using air drops, that kind of stuff. But this is going to be one of the first times in a long time that we've used actually ground forces on the ground.

Over the next week or so, we're going to be training them as firefighters so that we can then put them on the line, help put out any hot spots while our crews then would be released to be able to go towards the active flames.

(END VIDEO CLIP)

HARRIS: You know, there are as many as 19,000 firefighters and support personnel working these wildfires throughout the state.

COLLINS: It was pretty unbelievable too when we were talking to the gentleman that said one of the first times ever that they're going to go in and actually fight from the ground.

(WEATHER REPORT)

COLLINS: Time to take a look now at some of the most clicked on videos on cnn.com. A Minnesota man doing fine after surviving a lightning strike. It hit him on the top of his head. That looks like his hat there. Yikes.

A Texas polygamist sect recently under fire over child abuse allegations is selling its own style of clothing on the internet. The prairie dress, I think they're calling it.

A homeowner in Kansas gets late notice for her property taxes. How much does she owe? That's one penny. Better pay it.

For more of your favorite videos go to cnn.com/mostpopular. Of course don't forget, you can take us with you anywhere you go on your iPod with the CNN daily podcast, available 24/7 right on your iPod.

HARRIS: We promise it's a good thing. A federal lawsuit over a new gun law in Georgia, at issue does the law allow visitors to carry firearms in Atlanta's airport? City officials declared the airport gun free when the law took effect yesterday.

(BEGIN VIDEO CLIP)

MAYOR SHIRLEY FRANKLIN, ATLANTA: We are under the opinion which has been stated that state law protects this location because it is a public gathering.

JOHN MONROE, ATTORNEY FOR GUN RIGHTS BACKERS: I don't think that's her interpretation. I think that's her wish list for what she'd like the law to be. That's not what the law is.

(END VIDEO CLIP)

HARRIS: Let's see if we can sort through this a little bit, Ed. Atlanta officials say anyone carrying a gun at the airport could be arrested and charged with a misdemeanor. Georgia's new gun law took effect again yesterday. It allows gun owners with concealed weapons permits to carry firearms in several places. Those include restaurants that serve alcohol and also into public parks and on public transit.

COLLINS: The search for solutions, presidential candidates touting their plans to help you with the struggling economy.

CNN's senior political correspondent Candy Crowley takes a look.

(BEGIN VIDEOTAPE)

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT (voice-over): In the end, the presidency may come down to this. Which one will fix the things that ail the economy? Who hears the high anxiety?

SEN. BARACK OBAMA, (D) PRESIDENTIAL CANDIDATE: I've talked to families who are having to make different choices about the food they buy because they're out an extra $100 or $150 or even $200 a month. They used to go to groceries, now goes to the gas tank.

CROWLEY: Which one feels the crushing nature of an economy gone sour?

SEN. JOHN MCCAIN, (R) PRESIDENTIAL CANDIDATE: Who's suffering the most? Who's bearing the brunt of this? The low-income worker on fixed income that drives the oldest cars. Those are the largest gas consumption cars. We know that. The brunt of this incredible increase in the cost of a gallon of oil is being borne by the lowest income Americans.

CROWLEY: The economy now dominates the campaign trail as it dominates American households. In the latest CNN opinion research corporation poll, 58 percent of registered voters said the economy was extremely important to their vote. Eight points higher than Iraq. The largest gap since the war began. The campaign trail once separated by who was for and who was against the war is now littered with ten-point plans and long-term proposals.

MCCAIN: America's dependence on foreign oil was a troubling situation 35 years ago. It was an alarming situation 20 years ago. It's a dangerous situation today.

CROWLEY: John McCain wants a huge step up on the production side of the energy equation. That includes more nuclear power plants and offshore oil drilling. In the short term he favors temporarily lifting the federal gas tax. Barack Obama's plan leans more heavily on alternative energy, calling for a $150 billion infusion for research and development. He envisions an 80 percent reduction in carbon emissions by 2050. He opposes the gas tax holiday and offshore drilling.

OBAMA: I want to provide a tax break to working families. $1,000 tax break for families so that 95 percent of voters will see their tax bill go down in an Obama administration.

CROWLEY: For a long-term boost to the economy, Barack Obama would extend the Bush tax cuts for those making $250,000 a year or less. He promises to restore fairness to the tax code and give an immediate stimulus to the economy with tax relief for middle income families. John McCain proposes making all the Bush tax cuts permanent, reducing the corporate tax rate, and doubling the exemption for dependants. Both favor a plan to help homeowners whose mortgage is larger than the value of their home. It is an awesome set of challenges, but as detailed as his 10 point plan may be, they are political documents designed to win votes. The question is which man will actually deliver when it comes to policy.

Candy Crowley, CNN, Washington.

(END OF VIDEOTAPE)

HARRIS: Here's your choice. $4 latte or $4 gas. Trouble brewing at Starbucks. Big changes coming. The tight economy hits the coffee pot in the NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: Some pretty tough news for employees and customers of Starbucks. The company announcing plans to shut down 600 underperforming stores across the U.S. over the next year.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: 600 is a lot.

UNIDENTIFIED MALE: That's a lot.

UNIDENTIFIED FEMALE: That's a lot.

UNIDENTIFIED MALE: Even for the whole country.

UNIDENTIFIED FEMALE: I think so.

(END VIDEO CLIP)

HARRIS: While hundreds of Starbucks are closing, the coffee maker still plans to build in areas where it sees growth. Those plans scaled back, though. Fewer than 200 new stores in fiscal 2009. The bottom line for employees, some 1,200 Starbucks workers will lose their jobs.

Speaking of which, the job market takes another hit. New surveys out today show thousands of jobs were cut last month. Susan Lisovicz is at the New York Stock Exchange with the grim numbers.

Susan, good morning.

SUSAN LISOVICZ, CNN CORRESPONDENT: And it's been a trend for a while now. ADP says 79,000 private sector jobs were cut in June. That would be the biggest drop in five 1/2 years. The majority of job cuts came in manufacturing and construction. A separate survey, very similar, Challenger Gray & Christmas says 81,000 job cuts last month. If that pace continues, annual cuts could reach 1 million.

Those are both privately conducted surveys. Most importantly, the jobs report from the labor department comes out tomorrow. That's really the major economic headline of the week -- Tony? HARRIS: So, given these early indications, do they serve as a bit of a hint as to what we might expect tomorrow?

LISOVICZ: Absolutely. Most analysts agree that there's more weakness likely in the labor market. The estimate for tomorrow for the June jobs report is 50,000 job cuts. Remember, so far employers have cut jobs every month this year -- Tony?

HARRIS: All right. And I guess after yesterday's dismal reports on auto sales, it seems that it's really a major source. Perhaps, does it make sense, a major source of these job cuts?

LISOVICZ: We're seeing it in a lot of sectors. Financials, obviously Starbucks which you just mentioned. But we had a report today that shows factory orders grew slightly in May. But slumping demand for autos and heavy machinery. GM was downgraded by Merrill Lynch today. The analyst there says GM needs to raise $15 billion and that bankruptcy is not impossible. GM says it has sufficient liquidity but it could take more cost cutting steps if sales worsen.

Remember, GM sales in June were down 18 percent. GM shares right now are down 10 percent. And the market is slumping. It started on a higher note but the Dow right now is down 47 points. The NASDAQ meanwhile it's down 28 or about 1.25 percent -- Tony?

HARRIS: Better times ahead in the afternoon session, fingers crossed. All right Susan, thank you.

LISOVICZ: You're welcome.

COLLINS: Quickly now, I want to get you to the story that we've been following on Zimbabwe. A U.S. draft resolution that has come to light for more sanctions against Zimbabwe, particularly the president, Robert Mugabe who you may remember won the election there on Sunday. Many people really taking issue with that as you might imagine.

Richard Roth is standing by in our New York bureau now to talk more about this. How unusual are these types of sanctions, Richard?

RICHARD ROTH, CNN SR. UNITED NATIONS CORRESPONDENT: Sanctions have gotten quite common at the U.N. but it is not often that you hear the name of a country, a member of the U.N. be singled out for sanctions. And the Security Council, if they agree to this resolution, which is not clear yet, the U.S. is asking for Robert Mugabe to be sanctioned. The president of Zimbabwe, the British ambassador to the United Nations is supporting the U.S. move against Mugabe.

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JOHN SAWERS, BRITISH AMBASSADOR TO THE U.N.: I think the situation is very dire there. I think we need to make clear that the views of the Zimbabwean people as expressed in the last election that was recently free and fair that on 29 March needs to be respected and the new government needs to be formed on the basis of the views of the Zimbabwean people as expressed then. We do need to continue to see efforts to bring the party together. Obviously a negotiated way forward is the best way forward. But we also need to maintain the pressure on the parties for them to achieve that.

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ROTH: The U.S. resolution accuses Mugabe of violating human rights, oppressing his own people. It may take several days, if not weeks for a final version of this resolution. Heidi?

COLLINS: yes, Richard, I was just going to ask you before that sound there, what exactly these sanctions would entail. Sounds like they're going to be trying to freeze his assets, keep him from traveling?

ROTH: Yes, Mugabe and a lot of high members in his regime, asset freezes, travel bans and the U.S. wants an international arms embargo on Zimbabwe. But there is resistance from South Africa, China, other countries on the Security Council who think the U.S. and others are meddling in Zimbabwe's internal affairs.

COLLINS: Interesting. Well, we will wait to hear what happens on the Security Council on this U.S. draft resolution. Thanks so much, Richard Roth.

HARRIS: Ruling the pool. U.S. Olympic swimmers have a new weapon, a superman suit and it is helping them rewrite the record books.

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HARRIS: Could it be an Olympic advantage? A space age swimsuit helping the U.S. team swim and break records right and left, one after the other.

CNN's Chris Lawrence takes a look.

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CHRIS LAWRENCE, CNN CORRESPONDENT (voice-over): He's only in high school but Max Eliot's ready to trade his suit for the Speedo laser.

UNIDENTIFIED MALE: The new ones are ultrasonically bonded, so they actually don't have seams.

LAWRENCE: But these suits are submerged in controversy. Swimmers have set more than 40 world records in the Speedo laser and it just came out in February. The world record holder says it turns, quote, mediocre swimmers into Martians and foreign swimmers are revolting against their own sponsors to get it in time for the Olympics.

JESSICA HARDY, OLYMPIC SWIMMER: I think if they don't wear it, they're at a disadvantage for sure.

LAWRENCE: Olympic swimmer Jessica Hardy broke two records wearing the suit.

HARDY: When I jump in the water, like literally the water bounces right off of it.

LAWRENCE: An Italian coach called the laser quote, "Technological doping," but the Olympic committee okayed its super like fabric because the suit doesn't provide buoyancy. And some say its part of an ongoing evolution. From (INAUDIBLE) wining gold medals with shaggy hair.

UNIDENTIFIED MALE: In the 70s, nobody really thought to shave. If you notice, he slammed with a mustache and no goggles.

LAWRENCE: And when Jason Schwarz started training, it was all about the smallest suit possible.

JASON SCHWARZ, LA SWIM CLUB: At the time we thought that the skin was the fastest thing against the water. We would shave our legs, we would get the dead skin off, we'd get the hair off.

LAWRENCE: Full body suits designed to produce (INAUDIBLE) first caused a stir in the 1992 Olympic trials. But Speedo says the laser does more, its core stabilizer helps swimmers maintain a streamline position through the end of a race.

MAX ELIOT, HIGH SCHOOL SWIMMER: I'd say its like 40 percent is the technology and 60 percent is really mental. You get one of these suits on, you're like yes, I got a fast suit on. I'm going to go fast.

LAWRENCE (on camera): And if you want to feel what the Olympic swimmers do, it'll cost you. The laser goes on sale to the public in October, but will cost up to $550.

Chris Lawrence, CNN, North Hollywood, California.

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HARRIS: So how about this, just last night two more records fell at the U.S. Olympic swimming trials in Omaha, Nebraska. That makes six total during the trials for swimmers wearing the new laser suit, the super suit and the competition isn't over yet.

COLLINS: Nope.

Well, it's the happiest place on earth. And it's not Disney Land. Find out where it is in the NEWSROOM.

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COLLINS: You know, where they're really, really happy, Denmark, the Dames topping an international survey. People in 97 nations were asked if they are happy and satisfied with their lives. After Denmark, researchers found the most happiness in Puerto Rico, Colombia and Iceland. Iceland is the pretty place, Greenland is the freezing place. HARRIS: Yes, yes.

COLLINS: The U.S. ranked 16th. At the bottom of the list, Ukraine, Belarus, Moldova, Armenia and Zimbabwe. Four of those are former Soviet Republics, the university of Michigan study was conducted over 26 years. That's a pretty lengthy study from 1981 to 2007. I say school, that's some sort of Danish.

HARRIS: Is that what that was?

COLLINS: My friend Neil, (INAUDIBLE) taught me that. yes.

HARRIS: That was good. That was good.

COLLINS: It's all the same, Scandinavian, you know, whatever. All right, we'll see you when the NEWSROOM continues, just one hour from now.

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