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Options on the Table: Iran's Nuclear Future; Political DNA: Genes and Voting; Suspicious Packages at LAX & World Bank Cause Security Scare
Aired July 02, 2008 - 14:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DON LEMON, CNN ANCHOR: American Airlines flight attendants facing turbulence. Hundreds of them might be out of a job.
VERONICA DE LA CRUZ, CNN ANCHOR: Plus, it's not the DNC, it's not the RNC. Your decision to vote might be in your DNA.
LEMON: And people all over are taking a beating from the rough economy, but are African-Americans bearing the most bruises? It's an interesting question we're asking here today.
Hello, everyone. I'm Don Lemon, live at the CNN World Headquarters in Atlanta.
DE LA CRUZ: It's nice to see you.
I'm Veronica De La Cruz, in for Kyra Phillips today.
Nice to see you as well.
LEMON: Yes, you too.
DE LA CRUZ: Always good to be here.
You're in the CNN NEWSROOM.
And we start with a shakeup in John McCain's presidential campaign. This man, Steve Schmidt, is taking over day-to-day operations while campaign manager Rick Davis takes on a lesser role. Schmidt ran California Governor Arnold Schwarzenegger's reelection campaign and is known for his aggressive political style. The shake- up comes amid complaints from some Republicans about how the campaign has been handled so far, both in terms of message and in taking on Barack Obama.
In the meantime, McCain is talking trade in Colombia, the first leg of a three-day trip to Latin America and the source of deep divisions between him and his rival. Barack Obama opposes a proposed Colombian free trade pact, but McCain supports it and he says Hispanics will support him.
Let's go ahead and take a listen now. And please note that the senator is pausing here for translation.
(BEGIN VIDEO CLIP) SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: I think my support is going to be good. I come from a western state. I come from a border state. I received 70 percent of the Hispanic vote in my last reelection. I understand the issues and the challenges, and I'm confident of significant support.
(END VIDEO CLIP)
DE LA CRUZ: And we heard from Barack Obama, speaking last hour in Colorado, which could be a key battle ground state in November. Colorado voted Republican in 2004, but a state poll last week showed Obama leading John McCain by five percentage points. This is Obama's third visit this year to Colorado, where he laid out his plan for a national service program.
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: Through service, I found a community that embraced me, a citizenship that was meaningful, the direction that I had been seeking. Through service, I discovered how my own improbable story fit into the larger American story.
(END VIDEO CLIP)
DE LA CRUZ: Barack Obama has a five-point lead over John McCain in our new national survey of registered voters. The CNN/Research Corporation poll shows Obama at 50 percent, McCain at 45 percent. A month ago, Obama led McCain by three points.
Don't forget, check out our Political Ticker for all the latest in campaign news. Go ahead and log on to CNNPolitics.com. It is your source for all things politics.
LEMON: President Bush assuring Americans that his approach to Iran right now is a talking approach. And for now, anyway, nothing more robust than that.
He stressed diplomacy as a way to persuade the Iranians from continuing down a nuclear path. Senior Iranian officials are playing down speculation that the U.S. or Israel intends to use military action. The foreign minister today called such an idea, well, just craziness.
(BEGIN VIDEO CLIP)
MANOUCHEHR MOTTAKI, IRANIAN FOREIGN MINISTER (through translator): It has been our impression that this is a psychological war, because following repeated defeats in the Middle East, we do not believe that the United States is in a position to impose another war on American taxpayers.
(END VIDEO CLIP)
LEMON: All right. That's the Iranian prime minister speaking today at the United Nations. Let's bring in now Trita Parsi into our discussion. He founded the National Iranian-American Council and he joins us now from Washington.
OK. So you heard the foreign minister, you heard the president today. There has been so much talk about Iran, and then recently the suspension of uranium enrichment. Many people are saying, Mr. Parsi, that where there is smoke, there is fire.
What is going on with Iran? Is a war with Iran inevitable at this point?
TRITA PARSI, FOUNDER, NATIONAL IRANIAN-AMERICAN COUNCIL: I don't think war with Iran at all is any way, shape or form inevitable. But in this specific situation, it's not necessarily that there is a lot of fire, but the circumstances are such that if there is too much smoke, an accident may happen. And that, in and of itself, can spark a war.
LEMON: OK.
Now, we've been talking the suspension of uranium enrichment, and also, that was done not necessarily by the U.S., but by speaking with the Europeans. And this is something that you say is unprecedented. Why?
PARSI: Well, what's happening is that we may have found a new formula that enables all the parties to come to the table, to negotiate and pursue diplomacy, without losing faith. The United States has for the last couple of years refused to talk to Iran unless it first suspends its enrichment program.
The Iranians have had the opposite positions, saying absolutely no preconditions. Now the Iranians are going to first talk to the Europeans. And if that's successful, they will suspend and then the United States can join, giving both of them have a chance of saying that they did not give into any preconditions.
LEMON: OK. Let's talk about Iran and compare it to the war in Iraq. What does continued strife with Iran, what does that do for the war in Iraq? And what if that strife -- how does this -- I guess the suspension or these negotiations, does that lessen a threat or any at least action in Iran?
PARSI: All of these different arenas, the nuclear fault (ph), Iraq, are all interlinked. If the United States can reduce tensions with Iran over the nuclear issue, then it can have trickle effects on the Iraqi situation, getting some Iranian cooperation to stabilize that country. And the Iranians have a lot of influence there. And that, in and of itself, would be very good for the United States, very good for the Iraqis, very good for American troops, that probably can come home much sooner.
LEMON: Yes. As we said in our conversation we had earlier, that means that some of the troops may start coming home because of stabilization there. Last question to you. If this does happen under Mr. Bush's watch, he's not going to see the fruits of it, is he?
PARSI: These negotiations, once started, are probably going to be very long, and it's not going to have any quick results immediately. So it may very well end up being started during the period of Bush, and then the next president will reap the benefit and the credit for it.
LEMON: All right.
Trita Parsi, the National Iranian-American Council. In fact, he's the president of that.
We thank you.
PARSI: Thank you so much for having me.
LEMON: OK -- Veronica.
DE LA CRUZ: Suspected killer Nicholas Sheley is in an Illinois courthouse this hour waiting to hear some of the charges against him. Police believe the ex-convict went on a killing spree last week that left eight people dead in two states. He was caught last night after walking into a Granite City bar that turned out to be a popular police hangout.
Investigators say it appears the victims were all beaten to death. The bodies of two of them were found Monday behind a gas station in Festus, Missouri.
Tom and Jill Estes were last seen Sunday at a nearby motel. Justin Reed grew up next to the Arkansas couple.
(BEGIN VIDEO CLIP)
JUSTIN REED, NEIGHBOR OF VICTIMS: Everybody knew them around here. Everybody was close to them. We all knew them extremely well. And it's going to be lonely without them on those Christmases and those Easters, not seeing them, telling them, "Happy Easter" and "Merry Christmas." It's going to be lonely.
(END VIDEO CLIP)
DE LA CRUZ: Thus far, Sheley faces charges in two of the other killings. Officials are still processing all of the evidence.
LEMON: In Texas, police believe they solved another crime spree, this one involving random shootings on the roads and in parking lots. A 22-year-old, still unidentified suspect, was arrested overnight in Garland after police say he fired into the wall of a busy restaurant. No one was hurt, but at least two people have been wounded in other shootings. Police say there have been six in all.
DE LA CRUZ: Well, more pink slips may be flying out of American Airlines next month. The troubled carrier acknowledges it has sent out legally required notices of possible furloughs to 900 of its most junior U.S.-based flight attendants. The letter says they could be out of a job by the end of August.
LEMON: Let's check in now on the markets and where the price of oil is heading today.
Crude oil prices rose by nearly $2 on a government report that stockpiles, fell by two million barrels last week. On Wall Street, stocks slumping somewhat after a factory order showed their weakest performance in three months in May.
And if you look at that, the Dow down 6.68 right now.
We'll get the latest business news from CNN's Susan Lisovicz in just a few minutes.
We want to tell you about the price of gas. It is an issue, issue #1 for many. And for the third consecutive day, we have a new record-high price at the pump. According to AAA, the national average now for a gallon of regular unleaded is $4.09.
DE LA CRUZ: Well, getting your daily fix at Starbucks may not be as easy as it once was. After years of rampant expansion, Starbucks says it's going to close 600 company-operated stores in the next year. The Seattle-based company isn't saying which stores will be closed, but some patrons say they are surprised by the move.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Six hundred 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)
DE LA CRUZ: And beyond the store closures, Starbucks says they will scale back future expansion plans.
LEMON: Yes. When you, you know, can't afford to pay gas, it's tough to buy a $3 or $4 cup of coffee.
DE LA CRUZ: Four dollars on a cup of coffee or a gallon of gas?
LEMON: Absolutely.
Let's talk now about outrage in Mexico after tapes of questionable police conduct are shown on national television.
What is torture? We'll tell you what human rights groups and police are saying in a report from Mexico City. DE LA CRUZ: And check this out, Don. Are your political views linked to your DNA? We're going to tell you what a new study has to say about all of this.
(COMMERCIAL BREAK)
LEMON: All right. Leading our Political Ticker this afternoon in the CNN NEWSROOM, a Japanese cell phone company has pulled one of its television ads that used a monkey to portray Barack Obama.
In the ad, the crowd cheers and waves signs that say "Change." The monkey is urging them to change cell phone providers. The company behind the ad said it wasn't aware of any racial overtones and the ad was simply a nod to Obama's worldwide popularity.
As the nation's biggest minority group, what do Latinos want from the next president? Former Attorney General Alberto Gonzales says racial equality is one of the most important issues the next president must address. In an opinion piece in the "Los Angeles Times," Gonzalez says, "It's politically wise for both parties to forge closer relationships with Latinos and it's the right thing to do."
San Francisco Mayor Gavin Newsom may be setting his political sights even higher than mayor. He is considering a run for governor two years from now. Newsom, a Democrat, has filed papers to set up an exploratory committee so he can start raising money and conducting polls. Newsom is best known for challenging California's ban on same- sex marriage.
DE LA CRUZ: All right. So, check this out. Your decision to vote may be embedded in your DNA. A new study published in the "American Political Science Review" found your desire to vote an inheritable trait.
As CNN Medical Correspondent Elizabeth Cohen explains, it's just one of the political traits researchers think we inherit from our parents.
(BEGIN VIDEOTAPE)
ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT (voice over): They look alike. They talk alike. They even vote alike.
JOHN ROBINSON, IDENTICAL TWIN: Yes, I probably am pretty liberal.
CHARLES ROBINSON, IDENTICAL TWIN: Yes, you can probably paint us with the same brush.
COHEN: Identical twins John and Charles Robinson say they've pretty much voted for the same candidates in every election since 1984. Are their political views so similar because they grew up together in the same household and went to the same schools?
For years, that's what political scientists assumed, that our political views are shaped entirely by the world around us. But now they're finding our political views might be rooted in something much deeper, our DNA.
JAMES FOWLER, UNIVERSITY OF CALIF.: Nature in some cases is just as important as nurture when it comes to political behavior.
COHEN: So what's the scientific evidence? First, studies on nearly 20,000 twins found that identical twins who share all their genes tend to share political views much more so than fraternal twins, who share only half their genes.
Another study done at New York University and UCLA shows liberals and conservatives process information differently when playing a computer game. And how our brains work is to some extent governed by our genes.
FOWLER: We are finding surprisingly strong results.
COHEN: And James Fowler at the University of California-San Diego has found genes may play a role in whether or not you vote. He's just completed research suggesting people who vote tend to have a specific variation of two genes, a different variation than folks who don't vote.
As for political views, scientists say they'll never find the Republican gene or a Democrat gene. They say there are probably hundreds of genes and other factors that influence our political point of view.
(END VIDEOTAPE)
COHEN: Now, not everyone is on board with this genes and politics theory. Some political scientists will tell you that it is very soft science.
DE LA CRUZ: Well, Elizabeth, I mean, really, nature or nurture, why does it really matter what shapes our political view?
COHEN: Right. I asked political scientists that. I said, why are you investing money into trying to figure out whether it's genes or something else that govern how we feel politically? And they said, look, there is a lot of bitterness when people disagree over politics. And they said if people can step back and realize that some of what you feel politically is inbred, it's a part of your DNA, then maybe we wouldn't have the kind of nastiness we have in political debates.
That's their take on it.
DE LA CRUZ: And also interesting to note that you're a product of your environment. So if you were parents are talking about it, that also influences your decision.
COHEN: Oh, of course. I mean, most people will tell you, it is not nature or nurture. It's probably a combination.
DE LA CRUZ: Right. Well, interesting study, nevertheless.
COHEN: Great. DE LA CRUZ: It's always nice to see you, Elizabeth. Thanks.
COHEN: Thanks.
LEMON: I've got to jump in here, because I was having lunch with someone this weekend who is very liberal and, you know, a Democrat. But her sister, in the same family, is a very staunch Republican and conservative.
How does that happen? I mean, if it's in your DNA, I guess, one chromosome...
COHEN: Right. But siblings are only related...
LEMON: OK.
COHEN: ... only share 50 percent of their genes.
LEMON: Right.
COHEN: And a lot of this research has focused on identical twins. And with identical twins they found that they are more likely to have similar political views, as the twins that we had in our piece.
LEMON: OK.
COHEN: So, there's an important distinction between siblings and identical twins. Of course there are also identical twins who totally disagree with each other and in fact maybe even hate each other. Who knows? But it's just chances, really.
LEMON: All right.
DE LA CRUZ: I hope that's not the case.
LEMON: Let's hope it's not the case. No. They have don't hate each other. They love each other very much.
COHEN: Great. See you guys.
LEMON: Frightening views of California, where the fire danger is spreading. Governor Arnold Schwarzenegger puts in motion a plan that hasn't been tried since the 1970s.
(COMMERCIAL BREAK)
(BUSINESS REPORT)
LEMON: We have some breaking news from Washington and the World Bank.
Let's head now to our Homeland Security Correspondent Jeanne Meserve to tell us about it.
Jeanne, what do you know? JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: Well, an FBI spokesman tells us that a man tried to enter the World Bank today with a bag that he claimed carried explosives. We are told that this man has been taken into custody at this point in time. I'm sure he's being questioned.
In addition, officials at this point in time are trying to figure out exactly what this suspicious package is that the man was carrying. That usually involves bringing in robots and trying to do some detonation. But we haven't gotten a complete read yet from either the D.C. police or the FBI on exactly what's happening in that regard.
The World Bank is located right in downtown D.C. on a major thoroughfare. It's our understanding that some of the streets in that area of the city have been shut down at this point in time as a precaution as police investigate this incident.
The World Bank, of course, has often been the focal point of protests in this city. Many people unhappy with its policies. You can see there on the Google map exactly where it's located in downtown D.C. So frequently a target for protests and people who disagree with its policies around the world.
But what exactly we're dealing with today, whether there was a real threat or whether this was just a man hoping to create some disruption, we don't yet know. We'll let you know when we have more information.
LEMON: All right. This is, of course, breaking news just coming into the CNN NEWSROOM.
Our Homeland Security Correspondent Jeanne Meserve on top of it.
When you get new information, Jeanne, will you come back to us?
MESERVE: Sure will.
LEMON: Thank you very much -- Veronica.
DE LA CRUZ: Well, even in a booming economy, many African- Americans endure tough financial times. So what's the fallout in a slumping economy? We'll talk about it in our "Black in America" segment.
(COMMERCIAL BREAK)
LEMON: Hello, everyone. I'm Don Lemon live at the CNN World Headquarters in Atlanta.
DE LA CRUZ: And I'm Veronica De La Cruz. You are in the CNN NEWSROOM.
It's now 2:30 here on the East Coast. Here are three of the stories that we're working on in the CNN NEWSROOM.
American Airlines flight attendants facing a turbulent summer. The company has just told the union 900 flight attendants might be laid off come August 31.
After three weeks on the lam, a hedge-fund manager convicted of fraud has turned himself in. Samuel Israel disappeared as his 20-year prison sentence was set to begin.
Two relatives of a missing Vermont girl are under some serious scrutiny. Brooke's Bennet's ex-stepdad has been charged with obstruction of justice in the case and her uncle is considered a person of interest.
LEMON: And as Veronica just noted, some 900 American flight attendants may be laid off by August 31. They had just gotten notices in the mail. Joining us now by telephone is an American Airlines flight attendant, Steven Ellis.
Steven, real quick, did you get a letter?
VOICE OF STEVEN ELLIS, FLIGHT ATTENDANT, AMERICAN AIRLINES: No I didn't, Don.
LEMON: You did not get a letter.
OK. Does this come as a surprise to these 900 flight attendants.
ELLIS: I wouldn't say it comes as a surprise. We've been seeing the crisis that has been building for some time now. The fuel crisis is evident to all of us. So in terms of is it a surprise? No. Is it disappointing? Incredibly.
LEMON: Yes. You said that this is tied to the fuel crisis. Do you believe that is all, or is that the major factor in this, Steve?
ELLIS: Well, I think this is the major factor.
There are other issues in the airline industry certainly right now. And I think -- we've been complaining about some our executive bonuses for a couple of years now. We're not happy about that. But the fuel crisis is certainly the igniter of the crisis that we're facing in terms of our flight attendant corps and whether or not we're going to have furloughs later this year.
LEMON: Yes, and that's, of course, a concern for all Americans, and really all industries, not just to the flying public and to the people who work for the airlines.
But I have to ask you, do you feel in this way -- because I know there was an issue with the flight attendants and CEO salaries and bonuses and what have you -- do many of the flight attendants feel that maybe the powers at be are looking in the wrong place and maybe they should be looking at themselves?
ELLIS: I think a lot of our flight attendants, all crew members, I think would feel better if in fact we were seeing more leadership on that issue from our management. I think if we were seeing our management denying their bonuses and forgoing pay like they are doing at some of the other airlines, I think our flight attendants would feel like everyone was chipping in and doing their part.
LEMON: Yes. What is the concern here? I know that morale may be a concern. But do -- people think this is inevitable in the ranks?
ELLIS: I think there is a certain sense of inevitability because the crisis just keeps getting worse. When I started flying, I never imagined I would be watching the prices of a barrel oil every day. And now it's something that I look at every day because I recognize that -- the way things are and the way fares are. The airlines just can't survive in this market.
LEMON: Yes. All right. Very well put, Steven Ellis. You said that the concern level, of course, is very high there, right?
ELLIS: It is. It is very high.
LEMON: All right. Steven Ellis, an American Airlines flight attendant joining us by telephone to explain how the people who may suffer here are feeling.
Thank you, Steven.
ELLIS: Thank you, Don.
DE LA CRUZ: Senior police officials in Mexico are facing some very serious questions about tactics that some say cross a very dangerous line.
Here is CNN's Harris Whitbeck.
(BEGIN VIDEOTAPE)
HARRIS WHITBECK, CNN CORRESPONDENT (voice-over): The video, broadcast on Mexico's main newscast on Tuesday, shows what looks like the inhumane treatment of a suspect by local police in the state of Leon. A heavyset uniform police officer jumps up and down on a man who lies on the bed of a police pickup truck. Laughter can be heard on the video. The TV network says it was taken by a fellow police officer with a cell phone.
A Leon police spokesman said the incident occurred several months ago and that the officers who involved had disappeared. He called the actions reprehensible and said they did not reflect on the way the rest of the Leon police force treats detainees.
But the Tuesday surfacing of a second set of videos on a national newspaper's Web site appears to show more questionable actions by Leon police. The pictures, first obtained by the "El-Heraldo de Leon" newspaper, show Leon police officers being trained in extremely aggressive tactics by an English-speaking instructor. One clip shows police apparently squirting water up a man's nose. In another, the instructor orders a trainee to roll around in his own vomit.
Leon police say the videos are of a voluntary training exercise for officers to learn how to deal with high-stress situations.
One Mexican lawmaker says too many questions are raised about the training objective.
"We can't be sure of their objective," he says. "There are many doubts about what they are doing."
Newspaper headlines screamed, torture. State Human Rights Commission said it was opening an investigation. This happens at a time when the country is debating human rights violations by its military and law enforcement officers. Mexico's national Human Rights Commission has documented 634 cases of military abuse since the federal crackdown on drug cartels began last January.
(on camera): U.S. lawmakers tried to condition a recent aid package for Mexico's fight against drug cartels to improvements in the country's human rights record. Some of those conditions were lifted after intense protest by the Mexican government that the U.S. had no right to meddle in its affairs.
Harris Whitbeck, CNN, Mexico City.
(END VIDEOTAPE)
LEMON: An horrific scene in Jerusalem today. Stunned residents could only watch as a man drove a bulldozer down a crowded, busy road. crushing cars like toys, turning over buses, and killing three people in the process. The driver of the bulldozer was identified as a Palestinian. Israeli police say his motive could only be one thing.
(BEGIN VIDEO CLIP)
MICKEY ROSENFELD, ISRAELI POLICE SPOKESMAN: When he rampaged down the street, he had already killed a number of people. Therefore, as far as we were concerned it was a terrorist incident, and had to be stopped as quick as possible. If he would have continued and made his way further 300 meters after the point where he had in fact been stopped, he would have been made his way into the open market. Hundreds of people doing shopping there and running regular errands. This could have been an even worse terrorist attack than we have experienced to date.
(END VIDEO CLIP)
LEMON: We should tell you that police shot and killed the man they believe acted alone and spontaneously. They're looking closely into what his motive could have been.
Iraqi officials optimistic today that a firm outline on the future of U.S. troops there will be reached and reached soon. Iraq's foreign minister, Hoshyar Zebari, says a so-called status of forces agreement is reachable. That's a priority, since the American military presence in Iraq is covered by a U.N. mandate that expires in December. Negotiators are hammering out fine print about private security firms and legal jurisdiction along many other details.
DE LA CRUZ: Get out now. That is the order being given to people in Monterey County, which includes Big Sur and Shasta County to the north. Some of the California's largest wildfires are burning in those areas. The National Guard is being mobilized to help -- 200 are expected to be on the front-line some time next week. That hasn't happened in more than 30 years.
So that's happening out West. Also stormy weather in the Midwest. Where have we heard that one before, Chad Myers?
(WEATHER REPORT)
DE LA CRUZ: In the meantime, though, stormy weather in the Midwest for all the those people traveling for the Fourth of July holiday -- that causes problems at the airport.
CHAD MYERS, CNN METEOROLOGIST: It sure does.
DE LA CRUZ: Thanks for that, Chad. We'll see you soon.
LEMON: We're following breaking news here in the CNN NEWSROOM. Suspicious packages found in two places on two different coasts. Our Jeanne Meserve has the very latest on both.
What do you have, Jeanne?
MESERVE: We've just been told by a Transportation Security Administration official that there is a situation unfolding out at the Los Angeles International Airport, known as LAX. That in the international terminal there, there was a man with a backpack. He claimed that that backpack contained explosives. We are told by the TSA that this individual is now in custody as they continue the investigation of that situation.
Meanwhile, back here in Washington, the situation we told you about earlier at the World Bank. There is a man who showed up there, also trying to get into the building.
Sorry, somebody is passing me some late information here.
An individual who tried to get into the World Bank -- somebody has just handed me an e-mail that was sent to World Bank employees. Let me read it to you. I'm reading it to you as I read it.
"At approximately 12:45 p.m., that would be Eastern time, a man approached one of our security officers at the east lobby entrance with a suspicious package. Corporate security notified police, secured the lobby doors. Police have taken the man into custody and have begun their investigation. Staff should avoid the area surrounding 18th street."
So that is the notice that was sent out to employees. It's our understanding that some of the streets in the vicinity of the World Bank have been shut down as a precaution. The man has been taken into custody. Police are investigating that package he was carrying to find out if this was a bluff, or if in fact he did indeed have something dangerous in his hands.
LEMON: Jeanne, I've got to ask you this. Evacuations at the bank, do we know if employees were all asked to leave? MESERVE: We are not aware any of evacuations. This e-mail certainly does not make any reference to that. It simply asks people to avoid a certain entrance to the bank where this man showed up with this package.
LEMON: All right. A very busy day for our Jeanne Meserve. Suspicious package at the World Bank in Washington and also one at LAX. We will get more from Jeanne as this develops.
Thank you, Jeanne.
MESERVE: You bet.
DE LA CRUZ: Can you do what successful airlines do and buy tomorrow's gas at today's relatively low price. We're going to tell you how.
Plus, pennies per mile. How cheap can you go? We'll tell you about two guys wired to save.
(COMMERCIAL BREAK)
LEMON: Want to know how some Americans are saving a buck or two at the pumps? By filling up in Mexico. It's about a $1 per gallon cheaper these days across the Arizona or southern California border. Diesel is cheaper than that. Gas stations in Mexico are government owned and government subsidized. Bargain hunters are finding a few challenges, though. You're not allowed to bring containers of gas back into the U.S., just what you can fit in your tank.
Also, AAA says gasoline sold in Mexico -- listen to this -- gasoline sold in Mexico contains more and different chemicals that may hurt American cars in the long run.
DE LA CRUZ: Remember what you paid for gas a year ago? Do you wish you could pay the same price now. A new Web site makes it possible for next year. Susan Lisovicz joins us now from our Energy Fix desk at the New York Stock Exchange.
Susan, how does this work? Next year, we're talking about next year?
SUSAN LISOVICZ, CNN CORRESPONDENT: Well actually, I'm quite familiar with this process here because so many companies do this. For instance, airlines and other large companies, they buy gas at today's prices to guard against higher prices in the future. It's called hedging. But now you can do it too.
A new Web site called mygallons.com lets you buy as much gas as you want at today's price for your neighborhood and then redeem the gas at a later date if and when prices go up. The company gives you a debit card that is accepted at 95 percent of the gas stations around the country.
Today, the nationwide average for gas is a record high, $4.09 per gallon. If you had been able to do this a year ago when prices were under $3 a gallon, you would have saved $1.14 a gallon. That's huge, Veronica.
DE LA CRUZ: Wow. $1.14 a gallon. But -- mygallons.com, it sounds -- like one of those that's too good to be true.
LISOVICZ: Well, in some ways it is.
There are some fees associated with the program, including a $30 to $40 annual membership and a $1.95 processing fee each time you pre- purchase gas. So in order for this to be an energy fix, a true energy fix for you, you need to consider how often you will use the service. If you only buy 10 gallons worth of gas, the processing fee will add nearly 20 cents a gallon. So you need to buy more to make it worthwhile.
Also, the money will then be tied up. Not making money like, for instance, in a bank account, not earning interest. Therefore it only makes sense if you drive a lot and believe gas prices are going to continue to rise sharply.
And by the way, this is the point where I should mention that oil prices are up $2.28 right now at a new intraday high above $143 a barrel.
DE LA CRUZ: So this all works right now. Gas is up $4.09 a gallon. But what happens, Susan, if it shoots up to $7 a gallon? What happens to the company? Does it go out of business? What happens?
LISOVICZ: Well, that's a good question, because there certainly have been estimates that oil will go much higher. And of course that will trickle down to gas prices. It's a question that we asked Mygallons's CEO. He said he's placing his own bets in the oil futures market to offset price increase. He also says (AUDIO GAP) escrow accounts so that, in theory, you'll get what you pay for. But still, buyer beware.
For more great energy fixes, logon to CNNMoney.com. It is a great Web site with lots of things that you can do to save money in these difficult times.
DE LA CRUZ: And that web address, one more time, is mygallons.com, right?
LISOVICZ: Correct.
DE LA CRUZ: OK. All right. Susan Lisovicz, thanks.
And you were saying that -- nice suit, right? She's got a nice suit on.
LEMON: You guys are dressed just alike. It's kind of funny.
DE LA CRUZ: Nice suit, Susan. You look great today.
LISOVICZ: Thanks.
LEMON: I wasn't going to say anything, but, you know.
LISOVICZ: Do you have a problem with that, Don?
LEMON: No. I was just laughing. And they were like, move on. I didn't say it. She brought it up. But you guys look like twins.
DE LA CRUZ: She looks great.
LISOVICZ: Just like twins.
LEMON: All right. We were talking about gas prices. And with gas prices what they are, Veronica and Susan, fewer people laugh at the prospects of the electric car, especially two guys who wired 21 batteries to power this 1994 Honda. Larry Williams and James Werrick (ph) say their electric car costs them three cents a gallon to operate.
DE LA CRUZ: Wow.
LEMON: And that switching from a gas engine is easier than you might think.
(BEGIN VIDEO CLIP)
LARRY WILLIAMS, ELECTRIC VEHICLE FAN: There is a lot of interest because of gasoline prices for sure. This is something almost anybody can do with a little bit of electrical or mechanical ability.
(END VIDEO CLIP)
LEMON: Larry says his electric car can reach speeds of 100 miles per hour and can run for 40 to 50 miles at 60 miles per hour. But the initial outlay isn't cheap. With 21 batteries running them $1,400. But they say they've sold four retrofit electric vehicles already.
DE LA CRUZ: They're probably still saving money in the end, though -- regardless.
Even in a booming economy, many African-Americans endure tougher financial times. So what's the fallout in a slumping economy? Our "Black in America" segment is straight ahead.
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LEMON: What a day. In our "Black in America" segment, we're taking a look at how the slumping economy is affecting African- Americans. True, it is true, all money is green no matter what your color. But analysts say a higher unemployment rate for blacks means even tougher times in a fiscal slowdown.
CNN's Stephanie Elam reports.
(BEGIN VIDEOTAPE)
STEPHANIE ELAM, CNN CORRESPONDENT: As the recession debate drags on, many blacks have already made up their minds. CHRISSIE LEWIS, PROJECT MANAGER, AGILE-1: We've all been hit by the economic times as they are today.
ELAM: Chrissie Lewis lost her project manager position in January after the company she worked for went bankrupt.
LEWIS: All of us were put out of a job with no notice, no severance, no last pay check, nothing.
ELAM: Chrissie says she wasted no time sending out e-mails and resumes within five minutes of getting the news. She also applied for temporary placement through Act-1, a multi-million dollar staffing company founded by Janice Howroyd in 1978.
JANICE HOWROYD, FOUNDER/CEO, ACT-1: Chrissie's story rang for us on a personal level after we got to know her. But when she walked in, she walked in on top of her job.
ELAM: She ended up working for the company.
HOWROYD: Diversity is very important.
ELAM: Maurice Garner and his wife had a 1-month-old son. They had just purchased a home when he lost his job.
MAURICE GARNER, AREA MANAGER, APPLE: I got pretty much a few weeks notice. I found out in March and I was out in April. So -- scary time.
ELAM: He was prepared to do what it took to keep his family together.
GARNER: You don't go out to the movies, you don't go out to eat. You do more eating in, you actually provide -- pretty much contain yourself within your household.
ELAM: After two months, he moved his family to Atlanta from Los Angeles for a job with a division of Act-1.
For Chrissie, finding a job had taken only a month. But in a recession, their quick transitions may be the exception.
JOHN SCHMITT, CTR. FOR ECONOMIC AND POLICY RESEARCH: Pretty much constant experience of black Americans in past recessions is that whatever happens to the overall numbers, the numbers look demonstrably worse for African-Americans.
ELAM: Even in a bull market, blacks endure recessionary levels of unemployment, that's according to the Center for Economic and Policy Research. So when the economy slows down, blacks are hit the hardest and take longer to recover.
SCHMITT: If the recession follows the trends that previous recessions have, the African-American unemployment rate could go to somewhere between 12 and 16 percent.
ELAM: That's compared to between 6 and 9 percent for all Americans, if this is a recessionary year.
Educational level has a lot to do with the disparity.
SCHMITT: We have a large chunk of African-Americans who have college degrees and more. But we have an even larger group who have less than a high school degree or only a high school degree. Those are the groups that tend to suffer the most in a recession.
ELAM: Howroyd says the success stories come from those who focused on higher education, financial literacy and wealth building.
HOWROYD: Wealth allows you to survive in an economy and not feel its impact on a personal level. We don't have very many African- Americans who can say that as their story.
ELAM: But as a corporate leader, Howroyd is determined to reverse those trends. Her faith is in black America's ability to prosper.
HOWROYD: My business survived in the early days primarily because I had wonderful family members who were highly educated, had jobs in major corporations and were able to bring in a lot of that value into my company.
ELAM: Stephanie Elam, CNN, Los Angeles.
(END VIDEOTAPE)
LEMON: We want to know -- do you have questions about the issues facing black America? Here is your chance to get answers from some of the most influential names. Go to ireport.com/dream and ask away. Your questions will be part of the CNN/"Essence" magazine special event, Reclaiming the Dream. It's July 19th right here on CNN.
Then, make sure you join us for CNN's presents "Black in America." It's a six hour television event airing July 23rd and 24th only on CNN. See a preview at CNN.com/blackinAmerica -- Veronica.
DE LA CRUZ: We also wanted to get you up to speed on two stories we're tracking. One in Los Angeles, the other in Washington, D.C. We're hearing that terminal three has been shut down at LAX. It's been evacuated because of a suspicious package there.
And then in Washington, D.C., at the World Bank, apparently a man there walked into the building saying he had explosives in his bag. That man is now in custody. Our Jeanne Meserve has been working these stories. As soon as we get more, we're going to go ahead and check back in with her -- Don.
LEMON: CNN NEWSROOM continues right after this.
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