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More Investigation on the Tennessee Church Shooting; Suicide Bombings in Iraq Kill Dozens and Wound Hundredrs; Obama's Prayer Note in Jerusalem's Western Wall is Taken and Published in Israeli and American Newspapers; Mustaches Making a Comeback In New York City
Aired July 28, 2008 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: Children performing a play inside their church, a gunman exploding at a deadly rampage. CNN's Rusty Dornin is in Knoxville, Tennessee where a police news conference is just about to get underway. Rusty, good morning.
RUSTY DORNIN, CNN CORRESPONDENT: Heidi, of course, the nagging question is why, why did Jim Adkisson allegedly come into that church and open fire on the entire congregation? Now, remember it was packed. 200 people were watching the children's performance of "Annie" at the time. Now, eyewitnesses do say that he apparently he did shoot the first man who died, Greg McKendry, who witnesses are saying actually threw himself in front of the shooter and then he began randomly firing into the congregation. Two people have died, Greg McKendry, as I said, and Linda Kraeger, also.
There has been speculation about the motive. There's been talk that it's a hate crime. There was a comment made by the Associate Press early on by one of the witnesses that she claims he said hateful things. But when I just talked to that reporter, she said the woman would not elaborate on that. She would not say what exactly those hateful things were. Also, the FBI, of course, is assisting in this investigation but that's not uncommon. Whenever there is a shooting at a church, they look into whether there is the possibility that is hate crime was involved or whether there were any violations of civil rights statutes. So hopefully today we are going to be hearing the possibility that they will release the motive. Heidi.
COLLINS: Yes. And Rusty, we were able to speak to a reporter, not sure if it was the same person that you were talking with, but this person from one of the Knoxville papers there have spoken with some neighbors of Adkisson and that person had told them that yes he had a problem with churches or with religion. Forgive me.
DORNIN: Well, apparently he's got another real criminal history. There's been a few misdemeanors, traffic violations and that sort of thing but no other run-ins with the law that would indicate this kind of behavior. So we're anxious to hear whether police are going to be releasing any information about a possible motive.
COLLINS: All right. Rusty, we sure do appreciate that and we are watching for that news conference this morning. We want to remind everyone that it's set for just any minute now. So we'll keep our eyes and try to bring that to you when that happens. Meanwhile, more wildfire evacuations could be ordered in northern California. This morning about 2,000 homes are now threatened by a fast-moving wildfire near the west entrance to Yosemite National Park. More now from Rich Ibarra, of affiliate, KCRA.
(BEGIN VIDEOTAPE)
RICH IBARRA, REPORTER, KCRA (voice-over): The flames crossed roads, climbed hills and sped down canyons. By mid afternoon, more than 16,000 acres went up in smoke. In some areas, all firemen could do was watch.
DAVID PHILLIPS, ORANGE COUNTY FIRE DEPARTMENT: Terrain here is so steep and so inaccessible that we can't safely put men and equipment in there. Right now, basically, we're watching this burn to make sure it doesn't jump the road in the Merced River.
IBARRA: The fire is in an area that hasn't seen fire in 100 years. Dense brush covers the hills. And residents of more than 2,000 homes were ordered to leave, ordered to evacuate. But shifting winds do present a danger coming within two miles of Mariposa.
BOB BUGLIZEVICH, MARIPOSA COUNTY RESIDENT: My mom and my sister are up there. So, it's just pretty scary.
IBARRA (on-camera): One of the main jobs for firefighters is to protect houses as well as other buildings and there are so many scattered throughout the area.
IBARRA (voice-over): Almost 900 firefighters are battling this blaze. Crews coming from southern California, northern California, and the bay area.
PHILLIPS: Right through here, as you can see, it's got a little bit of wind behind it now and it's really starting to take off. So basically we just have to let it go.
(END VIDEOTAPE)
COLLINS: State fire officials say the fire was started by sparks from a gun. They say someone was taking target practice. Rob Marciano, standing by now, in just a moment, we'll get over to him.
In the meantime, two people are missing in southern New Mexico this morning. They were swept away by floodwaters. The remnants of hurricane Dolly dumped up to nine inches of rain since Friday. Up to 500 people were forced to evacuate from their homes and from a nearby camp ground. Dozens of home were damaged. The head of the emergency management says that 25 people were rescued. And most of them were in their vehicles trapped in deep water. Something that we hate to hear because Rob we're always telling people don't drive through it if you can't see the bottom.
ROB MARCIANO, CNN, METEOROLOGIST: Yes. That's one of the number one killers there, is flash flooding. And boy, that came down in a hurry, six inches of rain in a short amount of time and that Rio there, having some issues. Also issues today across North Dakota. Just 20 minutes ago, we showed you the tornado warning for this thunderstorm. Purple is now dying down to red and yellow. And the National Weather Service has allowed the tornado warning to expire in Dunn county.
COLLINS: Hey, Rob, forgive me for breaking in on you. We'll get back to you in just a moment, I want to get to this press conference we've been telling you about out of Tennessee on the church shootings there. Let's listen.
CHIEF STERLING OWEN, KNOWVILLE POLICE: ... on June 25th of 1950. He's currently charged with one count of first-degree murder and on a $1 million bond. The preliminary hearing is currently set for Tuesday, August the 5th. We have two victims. Gregory McKendry and Linda Kraeger. And again, let's bear in mind that this was a tragic incident and we want to keep their families in our thoughts.
At the church itself, during the search following the shooting, we found 76 shotgun shells, including those that were the spent rounds. There were three rounds fired by the suspect. We, of course, recovered the 12-gauge shotgun. It had been brought into the church inside of a guitar case. It also has been recovered. The gun had been purchased from a pawnshop. The Bureau of Alcohol Tobacco and Firearms is assisting us in tracing that gun now and determining whether or not it is a registered weapon.
It appears that what brought him to this horrible event was his lack of being able to obtain a job, his frustration over that, and his stated hatred for the liberal movement. We have recovered a four-page letter in which he describes his feelings and his - the reason that he claims that he committed these offenses. He indicated also in that letter that he expected to be in there shooting people until the police arrived and he fully expected to be killed by the responding police.
By way of criminal record, the only thing we've been able to find at this point in time is two DUIs, one in California a number of years ago and one more recently in Clinton. It appears he was acting alone. He, in his written statement, does not describe any affiliation with anybody. And the subsequent search at his residence shows that it appears that he was operating alone.
As I said, he did not expect to leave there alive and were it not by the hasty actions of some of the people in the sanctuary, there may have been more fatalities, so we all need to be thankful for that. It does not appear he's a member of any organized group. And that investigation obviously is continuing. That's all of the prepared remarks that I have. Are there any questions?
UNIDENTIFIED FEMALE: You've been talking about targeting gays or just liberals in general?
OWEN: Both. He stated both. Liberals in general as well as -
UNIDENTIFIED FEMALE: Did he target in his letter the church? I mean, did he specify he was going to that church to target people there?
OWEN: It appears that he did chose that church intentionally, yes.
UNIDENTIFIED MALE: Chief, if he was targeting liberals, would certainly investigating it as a hate crime. Will you seek charges of a hate crime?
OWEN: We're certainly investigating it as a hate crime. So the answer to your question is yes. And we also have the federal authorities, the FBI, involved in this investigation and they are looking at it from their perspective whether it is a civil rights violation or what federal law it is may have violated.
UNIDENTIFIED FEMALE: Chief, do you have a sense of how long he may have been plotting this?
OWEN: It appears he had been plotting it for, I believe, I was told a week or so. But I'm talking about in writing this letter and so forth. So I'm sure this is something that's been building over a long time, in terms of his anger.
UNIDENTIFIED MALE: Where did you find the letter?
OWEN: In his vehicle.
UNIDENTIFIED MALE: Where was his vehicle?
OWEN: In the parking lot of the church.
UNIDENTIFIED MALE: What kind of vehicle is that?
OWEN: It was a black Escape 2004, Ford Escape it was his vehicle.
UNIDENTIFIED MALE: Chief, is there something in particular that set him off against that church? Something that -
OWEN: Well, it appears that church had received some publicity in the recent past regarding its liberal stance on things and that is at least one of the issues we believe caused that church to be selected.
UNIDENTIFIED FEMALE: Was he going (inaudible).
OWEN: It does not appear so. There was - there was an indication he was not targeting the children but, again, that's still underway. But I believe it was not an individual per se.
UNIDENTIFIED FEMALE: Is it true that in a letter he stated something like, I'm going to try to kill everyone in the church? Is there anything like that?
OWEN: I can't really go into all of the details of the letter, obviously, until it is produced in court. But he certainly intended to take a lot of casualties because he had at least 76 rounds with him.
UNIDENTIFIED MALE: What kind of shells was it?
OWEN: 12-gauge shotgun, #4.
UNIDENTIFIED MALE: Did he say anything? (inaudible)
OWEN: He has make a statement. Yes.
UNIDENTIFIED MALE: (Inaudible).
UNIDENTIFIED MALE: Did he make any statements before or during the shooting?
OWEN: I don't know that, to be honest with you. I know that a lot of the folks have been interviewed but personally I don't know - if he was making any statements when he walked into church. So, it does not appear so.
UNIDENTIFIED MALE: How many videos -
OWEN: We've got several. And we're going through those as time permits. To discover whether or not there's any actual evidence on those or whether they may just be videos of the play that was underway. Well, certainly we're hoping that there's going to be even additional evidence as to the individual responsible and so forth. Obviously this is a little different than some cases. At the same time, we're quite pleased that the suspect is in custody and we're not dealing with someone who committed these crimes, these atrocities and got away. So, that makes it a little easier from our perspective. Now it's important for us, and I know everybody knows this, but I'll say it anyway, it's important for us to ensure that the evidence is treated properly, legally, and we don't run into any evidentiary problems. So that's why we're walking the tight line.
UNIDENTIFIED MALE: Chief, can you describe how these happened again?
OWEN: Well, from what I've been told, he was overcome by some of the other individuals inside the sanctuary. And so they actually tackled him, I'm told, and took him to the ground and held him until the police arrived. And that's something - I know it's been reported, but I'd like to repeat it because we're quite proud of it. From the time that the call was received at 10:18, we had officers in the parking lot at 10:21 and then they followed up with taking custody of him from the folks from inside the sanctuary.
UNIDENTIFIED MALE: When was the shotgun purchased?
OWEN: I'm told it was purchased about a month ago.
UNIDENTIFIED FEMALE: (INAUDIBLE)
OWEN: Yes. and we have talked to district attorney general's office about that, they will make the decision as to when and how. But yes, there certainly will be. IDENTIFIED MALE: What kind of shotgun was it?
OWEN: 12. Semi-automatic.
UNIDENTIFIED FEMALE: What pawnshop was that?
OWEN: I'm not going to release that.
UNIDENTIFIED MALE: Was it Knoxville?
OWEN: It was, no. Listen, let's let that one hold off until we get a chance to do some investigation. I don't want something to happen that might mess it up.
(INAUDIBLE)
OWEN: Yes. There was a handgun in his house and it was recovered.
UNIDENTIFIED MALE: What kind.
OWEN: .38. Oh, that's right. It was. A 38.
UNIDENTIFIED MALE: Any other weapons in the church?
OWEN: Not that I'm aware of. I didn't mention, I don't believe, but let me also say that he had been a member of the 101st airborne, at least that's what we're told. And so that's why we were concerned about weapons.
VOICE OF RUSTY DORNIN: You said he was angry over not being able to find a job. I mean what kind of job was he looking for? What was his background?
OWEN: He apparently had an associates degree in dealing with mechanical engineering and so he was looking for something along those lines, mechanical engineering.
DORNIN: where had he worked before? In Knoxville?
OWEN: He worked in a variety of places all over the country, as a matter of fact. And the most recent that we have here, where he was actively employed, was in '06, and that was here in Knoxville. But his employment record, at least - let me rephrase that. The resume that he had created, assuming it's accurate, showed him working all around the country.
DORNIN: By doing -- you said mechanical engineering.
OWEN: Similar type of stuff.
DORNIN: You don't have anything more specific?
OWEN: Not really. According to his statements, he has no next of kin and no family.
UNIDENTIFIED FEMALE: Did he have a church affiliation.
OWEN: He did not state and we're not aware of it.
[INAUDIBLE]
OWEN: I don't know where he was actually born, but I know in '05 and '06 he was living in Powell. Again, he had lived in other cities around the country with his other employment and what not over time. So I can't tell you exactly where he was born at this moment.
UNIDENTIFIED MALE: But he's resided in the Knoxville area for how long?
OWEN: Three or four years, it appears.
UNIDENTIFIED MALE: Why is he not being charged with two murders?
OWEN: He will be.
UNIDENTIFIED MALE: Today or -
OWEN: It's the district attorney general's call there. And we have talked to them about that this morning and we've discussed it and they are looking to take the case to the grand jury and they will make that decision.
UNIDENTIFIED MALE: Will he appear in court tomorrow or --
OWEN: He - I don't know. That will be up to the district attorney general how they want to handle that.
UNIDENTIFIED MALE: Chief, did we miss any signs or trigger that might have persuaded him to do that?
OWEN: Well, again, what I said earlier about his frustration over being unable to obtain a job. But then secondly, I think I made mention that we recovered a letter from the state indicating that he was either having his food stamps reduced or eliminated and I believe that gave him even greater concern.
UNIDENTIFIED FEMALE: You know what letter did he --
OWEN: I don't know if it was - I'm under the impression recently.
UNIDENTIFIED MALE: How many pages was it?
OWEN: The letter he wrote? Four pages. I was not it addressed to anybody?
It just started making statements and then ultimately ended up with him signing it.
UNIDENTIFIED FEMALE: Is there anything in the letter that describe his frustration with --
OWEN: I believe I said that earlier. That was throughout the letter, that that's what it was. Well, we talked about that. The liberal movement and he specifies the liberal movement and he included a variety of things. But essentially, those he perceived to be liberals.
DORNIN: Well, is it because liberals were getting jobs he couldn't get? That kind of thing?
OWEN: One would read that into the letter, that that was part of what he was talking about?
DORNIN: Was he angry that gays were getting jobs and he wasn't? Was that something that was in the letter?
OWEN: Well, you're getting a little bit more specific and I think the letter was but he did express that frustration, that the liberal movement was getting more jobs and he felt like he was being kept out of the loop because of his age and because he was not liberal.
Mayor, do you have anything you'd like to say?
MAYOR BILL HASLEM, KNOXVILLE, TENNESSEE: I do want to thank the members of the congregation who literally saved a lot of lives. It's apparent now. And also our police department, who always does a good job particularly we are very grateful for their actions.
OWEN: This is Rick Lambert with the FBI and the agent in charge here in Knoxville. And as I said, we received complete cooperation from both the FBI and the ATF, who are helping us trace the gun and so forth.
UNIDENTIFIED FEMALE: Chief, had he made a prior threat to this church?
OWEN: None that we're aware of.
DORNIN: Rick, can you answer a question? How do you determine when someone writes a letter like that or something, what is your determination whether a civil rights statute has been violated?
RICK LAMBERT, FBI: Well, any time someone uses force to obstruct another person in the free exercise of their religious beliefs, that is a violation of federal civil rights statutes and that's why we're committed to partnering with Chief Owen and our colleagues here at the Knoxville Police Department to gather and collect the evidence jointly that will ensure that justice is done in this case.
DORNIN: Do you foresee filing charges in this case?
LAMBERT: Well, that will be worked between the United States attorney Russell Dedrick and the district attorney general Randy Nichols. Typically those decisions are made after looking at all the evidence, that has been gathered and collected based upon collaborative determination of where the prosecution -- where it would be most appropriate.
UNIDENTIFIED MALE: How long will that take?
LAMBERT: It's hard to say. We're in the second day of the investigation, obviously.
{INAUDIBLE]
COLLINS: All right. There we have it. The news conference we've telling you would take place today out of Knoxville, Tennessee, where this horrible church shooting happened just yesterday. Two people dead from that. I can tell you some of the headlines out of that news conference that we mostly heard from the Police Chief Sterling Owen there who tells us that the shooter or suspected shooter, I should say, Jim Adkisson is actually being held on $1 million bond now. They have a preliminary bond coming up on August 5th. After this search that they did of the church and also his home, 76 shotgun shells were found. He fired three rounds. Used a 12-gauge that he apparently bought from a pawnshop and brought it into the church in a guitar case. At the search of his home, they also found a handgun there.
So they now have the ATF, the FBI, and the police investigating. The ATF is going to be tracking the weapon. Of course, it'll go back to whatever pawnshop that shop saying we're not ready to release any detail on that yet. To find out exactly when this exchange happened. And then also the FBI is actually investigating whether or not a civil rights statuette has been violated. We have also learned that they do say that they are investigating this as a hate crime and the motive is the other big news out of that press conference.
According to the four-page letter that they found, police, that is, he could not get a job, he says, and he also hates the liberal movement. His food stamps were apparently going to run out, too. So sort of a combination there, according to that letter. Again this awful shooting that took place yesterday. Tennessee Valley Unitarian Universalist church, Knoxville, Tennessee.
We will be following this story. All kinds of news to come out of that. our Rusty Dornin as you heard her asking questions of the police chief there and also the FBI gentlemen will be joining us shortly to tell us a little bit more about what she learned. In the meantime, as I said, thy are investigating this as a hate crime. And they tell us that he did appear, Jim Adkisson, to have chosen this church, specifically again, the Tennessee Valley Unitarian Universalist Church which according to the police chief, had gotten some publicity for it is liberal stance on things.
Rusty Dornin is actually joining us now for more on all this. I feel like Rusty they gave us quite a bit of information but still hanging on to the evidence so tightly because as you mentioned, it's only the second day and they've got this four-page letter to sort of sift through and try to figure out where Adkinsson'S come from.
DORNIN: Heidi, I think we were all surprised that they were as forthcoming about this letter that apparently was kind of a tirade against the so-called liberal movement. He would not really describe exactly whether he was talking about gays and lesbians. He said that they were mentioned but he just described the liberal movement as being responsible and the fact that he couldn't find a job and was very upset about that.
Also, apparently the state had cut off his food stamps some time in the recent months and he was very angry about that. As you heard, the FBI is considering whether filing charges. They will not say when they will do that or what venue that would be in. But certainly some of the things in that letter he might qualify as a violation of civil rights. So, so far they didn't talk about the other victims. There are apparently seven other people who are in the hospital.
WHITFIELD: Uh-huh.
DORNIN: They have not released any of the names of any of those victims so far but still not a lot of information about this suspect coming out other than the fact that he was sort of a drifter, apparently, a mechanical engineer by trade. Had a lot of jobs in different areas of the country and the only violations he's had are drunk driving violations apparently in California and in Tennessee. So nothing that really preceded this incident that would have indicated that he would go off like he did.
WHITFIELD: Yes. Wow. And the other thing that came out of that letter that they talked about, Rusty, is how he said that he would be in that church shooting until the police came and he did expect to be killed by police. Not the case here and they are going to get their day in court. That's for sure. With Jim Adkisson. Rusty Dornin, we certainly appreciate it. Thanks so much.
COLLINS: Female bombers on the attack. Dozens are dead and hundreds wounded in Iraq today.
(COMMERCIAL BREAK)
COLLINS: Hang on. Help is on the way for many struggling homeowners. President Bush will sign a housing relief bill perhaps as early as today. CNN's personal finance editor Gerri Willis tells us what it would mean to you. So how will this bill help homeowners, Gerri.
GERRI WILLIS, CNN CORRESPONDENT: Good morning there, Heidi. First of all, you need to know that one of the main features of this bill will allow struggling homeowners to refinance in more affordable, fix rate, 30-year loans. The bill requires major concessions running down the value of the loan 90 percent of the flowers current value and of course that could mean substantial losses to your lender. Keep in mind, it's up to your lender to decide whether or not to do one of these rescues for you. The lender will do a new appraisal to determine the new value. Your income statements, bank accounts, job history, and credit scores will also be evaluated. Lenders won't sign off on one of these workouts until they think they will lose less money on the workouts unless they think they'll lose less money on the workout and they will buy through foreclosure, which is typically very costly to them.
COLLINS: Yes. WILLIS: If your original lender decides to do a work-out, the new FHA backed lender buys the old loan and takes over the re-worked mortgage. So, it's a little complicated, but there are opportunity for folks out there.
COLLINS: You got it. Obviously it sounds like - in fact how do you qualify for this type of refinance?
WILLIS: Well, you have to live in your home and have loans that were issued between January 2005 and June 2007 and you must also be spending at least 31 percent of your gross and monthly income on mortgage debt to be eligible. You must also prove that you won't be able to keep paying your existing mortgage. Maybe you got an adjustable rate that going higher and higher to get an FHA-backed mortgage. And other debt on the home such as a home equity loan or line of credit must be retired. You have to pay it off.
This program may be available as early as October but we're really not sure that the FHA warns it could take time, perhaps months, before the process is ready to go streamline and really ready to be used.
COLLINS: Yes. It sounds like there's some other benefits, in this bill though, right?
WILLIS: Tax credits.
COLLINS: Uh-huh.
WILLIS: If you buy a new home between April of this year and July of next year, you'll get a one-time tax refund of $7,500. It's a tax credit. But there is a catch. You have to repay this over the course of 15 years. It's sort of like an interest-free loan. If you sell your house and you make a profit, then you have to pay the credit in full and will owe uncle Sam the balance. You have to meet certain income limitations. 75,000 for singles. If you're a couple, your adjusted gross income has to be below 150,000. You have to pay the tax credit back. It's a one-time thing on offer. Could help you for a while but you'll have to give it back to the government.
COLLINS: You've really got to plan ahead for that. So what happens next?
WILLIS: Well the bill is awaiting the President's signature. He's expected to sign it as early as could be a day or two. One thing to keep in mind here, you know, if you're a homeowner having trouble right now with your mortgage, you might not want to wait until this legislation is implemented. Go to your lender now and ask for a loan modification. You can also call the Department of Housing and Urban development at 1-800-call-FHA. Or go to hud.gov. There are also housing counseling available foundation for credit counseling at 866- 845-2227. There's help out there. Of course, if you have any questions, send them to us at toptips@cnn.com. We love hearing from you and we answer questions here every Friday.
COLLINS: Yes. And you do a great job at it, too. Listen, what's coming up on "Issue Number one."
WILLIS: Well at noon today we're talking about one real solution to high gas prices. It's not complicated. You'll have to watch the show to find out.
Plus, the best cities in the U.S. to do business. Where is it a good place to start your small business?
Great stuff coming at noon Eastern, right here on CNN.
COLLINS: Terrific. We'll be watching. Thank you, Gerri.
WILLIS: My pleasure.
COLLINS: Welcome back everybody. 10:30 Eastern time now.
Blast after blast in Iraq. An unusually violent day, dozens of people killed and hundreds wounded. The attackers -- female suicide bombers. Our Morgan Neill is live in Baghdad this morning.
Morning to you once again, Morgan.
MORGAN NEILL, CNN CORRESPONDENT: Morning, Heidi.
That's right, an official with the Interior Ministry says three female suicide bombers carried out -- set off their explosives today in the Karradah neighborhood of Baghdad, killing at least 32 people and wounding at least 102 others. The explosions, they say, took place within 30 minutes of one another and appeared to be a coordinated attack targeting Shia pilgrims, who were the vast majority of the casualties of this attack.
Iraqi security forces had put in special security plans trying to avoid just this kind of attack during the pilgrimage which started over the weekend and comes to a close tomorrow. But those security measures, primarily in the Kadhimiya neighborhood itself. This attack took place to the south in Karradah and obviously these suicide bombers were able to slip through the security net.
Now there was another attack today as well, in the northern city of Kirkuk. And what police say happened there is that a female suicide bomber again was responsible, slipped into a crowd of Kurdish demonstrators protesting against a proposed electoral law, set off her explosives. The toll there -- at least 38 people killed there another 178 wounded. Authorities in Kirkuk have now imposed a curfew there but not until a lot of damage had already been done, Heidi.
COLLINS: Oh, boy that's the case certainly.
Morgan, any idea how officials know that these attacks were apparently coordinated, other than the timing just because they happened so closely together?
NEILL: We're not getting a whole lot of background on that, but it would appear to be just the timing that has them saying that. And this is certainly a prime target for anyone looking to attack Shia. There are thousands and thousands of Shia heading into that Kadhimiya neighborhood. So as you can see, if that's what you are out to do, this is certainly the place to do it.
COLLINS: Yes. All right. CNN's Morgan Neill live from Baghdad this morning.
Morgan, thank you.
Swept away by flood waters. Two people missing in New Mexico, victims of the storm that was Hurricane Dolly.
(COMMERCIAL BREAK)
COLLINS: Remnants of Hurricane Dolly devastating southern New Mexico this morning. Two people are missing. They were swept away by rushing flood waters. Those floods also forcing hundreds of people from their homes.
We are joined now by Drew Rudnick of affiliate KOAT. He is in Ruidoso this morning with the very latest.
Drew, people are pretty hard-hit there?
DREW RUDNICK, KOAT REPORTER: Yes. I'm along Ruidoso right now. And as you can see behind me, the damage is horrendous, just (AUDIO GAP). People have been going back into their trailers and mobile homes and checking the damage of their cars.
Mobile homes have been washed away -- cars, debris of all kinds. Nearly 700 people are still out of their homes this morning, many in evacuation centers. And there are reports of two missing people swept away by rushing flood water. Emergency crews continue to mount rescue missions around the area because more families are stranded and trapped in water-logged neighborhoods where as many as nine bridges are washed away.
They are using ladders and boats to get food and water to those cut off by the still rain-swollen river. Police and firefighters say that there is still a very big risk, a very big danger for people in this area and they will be doing checks out throughout the day to make sure residents in this area are OK.
COLLINS: I just wonder, Drew, I'm sure you have had a chance to talk to at least a few people in this area. Were they surprised by this?
RUDNICK: Yes. Ruidoso Downs is a racetrack in the area. It is under water and they may not be able to hold races there for a significant amount of time.
COLLINS: All right. Yes, Ruidoso Downs, also a concern, I'm sure, for the area.
Thanks so much. Drew Rudnick -- we appreciate it -- of our affiliate there KOAT, the situation in New Mexico. I was trying to ask him, Rob, as we talk a little bit more about this, I'm not sure he could hear me with the rushing waters behind him, whether or not people in that area were used to this kind of thing or perhaps were surprised by what has happened after Dolly?
ROB MARCIANO, AMS METEOROLOGIST: Well it's the monsoon season so -- it's the flow which brings these thunderstorms in the afternoon. But what aggravated that was the remnants from Hurricane Dolly which came ashore in southern Texas last week. So, that moisture got up into that flow which, was already pretty moist, and then it just dumped all of that rain in a short period of time.
In those desert areas, all you really need is an inch, maybe two in a few hours, and then boom, it's over. They had six inches. So that gives you an idea of just what kind of flooding we're talking about. That (INAUDIBLE) county flood warning. The watches that had been posted have been allowed to be dropped across the eastern part of that state.
We're looking at thunderstorms that are rolling through North Dakota. These have been severe, but now falling apart just a little bit. But certainly some hail. There was a tornado warning out for Dunn County earlier this morning. That has since been allowed to expire. But this tornado -- this severe thunderstorm watch box is in effect until noon local time for the potential of seeing thunderstorms that could produce some gusty winds.
We had some big time winds, thunderstorms in through Iowa yesterday, some of which gusted over 80 miles an hour, damaged there with some reports of tornadoes. That mob of thunderstorms weakened a little bit overnight but Kansas City to Columbia, almost to Saint Louis, showers and thunderstorms continue to pop along this ridge which continues to heat and bring in humidity across parts of the deep south, which will see temperatures that will be rather toasty.
Dallas, we'll see a high of about 105 today, 98 degrees in Kansas City.
Do I have a Dallas -- I forget what I loaded up this hour.
Anyway, 95 degrees in Nashville, 89 degrees in D.C. and 86 degrees expected in New York City.
So, toasty across the central part of the country -- we are in the midst of summer. There's WFAA. Not a cloud in the sky, my goodness. That's going to just bake northern Texas. You're under a heat advisory through today with temperatures over 100, with humidity it will feel like more over 110. So definitely keep your cowboy hat on.
COLLINS: Yes, definitely.
Hey, temperatures for this weekend, are they going to cool down a bit? Because you know what's coming up this weekend, don't you? CNN golf tournament.
MARCIANO: Oh, yes.
COLLINS: For those of you who don't know, Rob was on the team last year with me and we tied for second. And this year Rob will not be playing.
MARCIANO: I think we --
COLLINS: I think you're a sore loser.
MARCIANO: ... and as Tiger likes to say, second sucks and third is worse.
(LAUGHTER)
MARCIANO: If you guys place without me, I'll congratulate you on the air.
COLLINS: Well, that's so nice.
All right, Rob. Thank you.
MARCIANO: I'll be working. See you, Heidi.
COLLINS: All right, thanks.
Water, water everywhere. But it can't save a famous seaside pier from a spectacular fire. Look at that.
(COMMERCIAL BREAK)
COLLINS: The average price for gasoline has now dropped back below $4 a gallon, but prices are still well above where they were last year at this time. And drivers are cutting back on their driving at an astounding rate. CNNMoney.com's Poppy Harlow has our "Energy Fix" from New York this morning.
Hi, Poppy.
POPPY HARLOW, CNNMONEY.COM: Hey, Heidi. Good morning.
People have certainly found their own energy fix. They are leaving their car in the garage. The latest numbers from the government show drivers cut out more than 40 billion miles so far this year compared to last year. So just how far is that?
Well, it's like driving around the Equator more than one million and a half times. You heard that right. Nearly 10 billion of those miles came in May, the most recent month reported. Now that's a nearly 4 percent drop. It's about -- that's pretty much more than double the drop that we saw in April, Heidi. People are not driving as much.
COLLINS: Yes, well it seems like that's at least part of the reason why prices at the pump are falling.
HARLOW: Yes, that's part of the reason. It's not the whole story.
AAA does say the national average price for gas -- sigh of relief here from a lot of drivers -- now $3.96 a gallon. That could be a real energy fix, especially for American drivers. Keep it up.
But there's also some bad news to tie into this. Because people are driving less, the government now is not getting as much revenue from gas taxes and tolls on roads and bridges. That means less money to fix deteriorating roads and bridges -- much less to build new roads, new bridges and public transportation. And the Bush administration is expected to announce later today a $3 to $5 billion deficit for the Highway Trust Fund.
And, Heidi, as you know, that can be a big problem.
COLLINS: No question about that. We saw what happened in Minnesota, just absolutely awful when these bridges are not maintained properly.
HARLOW: That's exactly right. It's a potential for disaster.
This week, of course, Friday will mark the anniversary of the Minnesota bridge collapse where 13 people died in that tragedy. Today though, Pennsylvania's governor will release a report on the state of the nation's bridges. That press conference will be held near an I-95 bridge that was closed for several days just a few months ago after it needed some emergency repairs.
The good news, though, some less driving really could lead to less wear and tear on some of the bridges, along with lower gas prices. So that's a potential energy fix.
Many more energy fixes on our Web site -- CNNMoney.com. We'll have Susan Lisovicz with the latest on another bank failure. That is coming up here in the NEWSROOM. Keep it locked right here.
(COMMERCIAL BREAK)
COLLINS: Federal regulators closed two more banks but they appear to be getting the hang of it. Susan Lisovicz is on the floor of the New York Stock Exchange with the very latest.
Hi there, Susan.
SUSAN LISOVICZ, CNN CORRESPONDENT: Hi, Heidi.
It's a sad state of affairs when you say we're getting accustomed to this. But yes, this did happen late Friday. The two banks are First National Bank of Nevada and the First Heritage Bank based in California. Involves 28 branches and total assets of $3.5 billion. Poor lending practices completely overwhelmed these two. And of course, now this brings the total number of bank failures this year to seven. The biggest -- one of the biggest in history was IndyMac just a couple of weeks ago -- Heidi.
COLLINS: Yes, when IndyMac shut down there was sort of a run on the bank with people lining up for hours to get their money out. The video of it we saw was unbelievable.
Are we seeing a similar situation today?
LISOVICZ: No, absolutely not.
And one of the reasons why, Heidi, is that the FDIC quickly sold the assets to Mutual of Omaha. So, because Mutual of Omaha paid a premium, all deposits, even those in excess of $100,000, are safe. It was a smooth transition. Customers are able to withdraw at will.
Meanwhile, we're watching shares of Fannie Mae and Freddie Mac. Heidi, as you know, the Senate now passed the housing bill over the weekend. President Bush is expected to sign it quickly.
But I'm looking at something that just came over from Dow Jones. The International Monetary Fund saying that it sees increased danger of economic fallout from the ongoing financial crisis, and specifically is urging the U.S. government to look at the business model for Fannie and Freddie. So we'll keep following that story.
(STOCK MARKET REPORT)
COLLINS: Not today, but later on this week we're going to see some key reports coming out, right? .
LISOVICZ: Like the jobs report.
COLLINS: Yes, very good. All right, Susan, thank you.
LISOVICZ: You're welcome.
COLLINS: Newspaper under fire. Barack Obama's note to God pulled from Jerusalem's Western Wall and printed for the world to see.
(COMMERCIAL BREAK)
COLLINS: Rising death toll in Turkey from a couple of weekend bombings. This is video of the blast in Istanbul. This morning, another death brings the death toll to 17. A Turkish news agency reporting more than 150 people injured. The two blasts, about 10 minutes apart in the same pedestrian square that lots of tourists and residents use. Istanbul's governor calls the explosions act of terror. So far, no claims of responsibility.
A controversy in Israel involving the U.S. Democratic presidential candidate. During his visit there last week, Barack Obama stopped at Jerusalem's ancient western wall. It is a tradition to write a prayer and then leave it in one of the wall's cracks. Obama did that.
Now, an Israeli newspaper has published what it says is the prayer. The paper says it got the note from a seminary student. The rabbi in charge of the wall says, taking Obama's note amounts to desecration of the holy site. He calls the action sacreligious. The note, also published in the "New York Post." So, what do you think? Should the media publish the contents of Obama's note? Earlier, we asked for your e-mails. And here's what some of them say.
Susan says, "I'm outraged by the sinful actions of the individual who stole Obama's note. I visited the Wailing Wall and felt that my note was between God and myself."
Rachel writes, "That is just the same as your high school rival breaking into your room, stealing a diary and publishing everything in the newspaper."
Terry says, "Sneak a mic into the confessional maybe you will find juicy story there also. Unbelievable! No respectable news organization should publish the contents of his personal prayer."
And Chris writes, "The press has gotten too involved in every little mundane detail of Barack Obama's trip. How much does leaving a note at the Wailing Wall have to do with how he will facilitate the country?"
Continue to e-mail us at CNN NEWSROOM at CNN.com. And thanks for those.
New York, feeling the love for the mustache. Is it the sign of a comeback?
(COMMERCIAL BREAK)
COLLINS: Fire destroys a popular tourist attraction in England. Check out these pictures. This is Grand Pier in Coastal Town, just west of London. Wow. It housed and rides and go-carts. Fire crews say the blaze broke out earlier this morning. No reports of injuries. But, the pier dates back to 1904. It had to be rebuilt in the '30s because of a fire then, too.
Mustache power. Can a hairy lip change your luck? It seems to have worked for baseball player Jason Giambi. But, what can it do for you?
Richard Roth has the story.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Power up the stache.
ROTH (voice-over): It's the mustache that took Manhattan and all of New York.
UNIDENTIFIED MALE: (INAUDIBLE), drives one right field. This is deep. Towards the corner. This one is gone!
ROTH: New York Yankees baseball slugger Jason Giambi was in a slump so he decided to grow a mustache.
JASON GIAMBI, NEW YORK YANKEES: You know, it's kind of grown into its own like little personality.
UNIDENTIFIED MALE: This is it. Hard it in the center field for a base hit.
ROTH: The base hit kept on coming for Giambi and the Yankees, an organization that frowns on facial hair started winning.
UNIDENTIFIED MALE: The stache, the power of the stache. Giambi's stache.
ROTH: Then a hair raising trend flourished on the sidewalks of New York.
UNIDENTIFIED MALE: I see a lot of guys coming in with mustache. Must be something new.
ROTH: Of course mustache has never get old. From cartoon stars, to movie actors, to television detectives, to president, the mustache is part of world history.
UNIDENTIFIED FEMALE: Gandhi, he had a mustache, right? Oh Gandhi is the best.
ROTH: Its men and their mustaches. And 95-year-old Paul Molley's (ph) barber shop.
UNIDENTIFIED MALE: In a crowd of people gathering, you know, your mustache in the face is a distinct face.
ROTH: But are mustaches sexy?
UNIDENTIFIED FEMALE: It depends on who is wearing it.
UNIDENTIFIED FEMALE: Not at all.
ROTH: But you'll accept Giambi's?
UNIDENTIFIED FEMALE: Yes. As long as the Yankees keep winning.
ROTH (on camera): Do you think you attract women more with a mustache?
UNIDENTIFIED MALE: Oh, yes. I got seven women.
ROTH: Where? In the truck?
UNIDENTIFIED FEMALE: That's really not very attractive at all.
ROTH: Why?
UNIDENTIFIED FEMALE: I don't know. He looks much better without it, like you do.
ROTH (voice-over): Mustaches can get out of control.
UNIDENTIFIED MALE: It's kind of big and freaky now, I guess. ROTH: Is there a special power behind the mustache?
GIAMBI: I hope so, because we're winning ever since I started growing it. So, if they get to world championship, I can look like an idiot for a while.
ROTH: Mustache madness climaxed the Yankee stadium this month when the team handed out 20,000 fake mustaches to the crowd.
UNIDENTIFIED MALE: The mustache is all over.
ROTH: Richard Roth, CNN, New York.
(END VIDEOTAPE)
COLLINS: It looks best on that little kid.
You're with CNN, I'm Heidi Collins. Tony Harris is off today.
Developments keep coming into the CNN NEWSROOM on this Monday morning, July 28th. Here's what's on the run down.
Hatred and anger. Just last hour, police in Tennessee, outlining what they believe is the motive behind a church shooting.
The number of people killed in Iraq today climbing. Four suicide attacks shake the country's recent calm.
And hurricane leftovers making a mess in New Mexico. Talk about flooding with a CNN iReporter, live this hour in the NEWSROOM.
