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Memorials and Remembrance Services in Alabama; Mad at the "Mad Money" Man; Billionaires Gets Poorer; Shoe-Thrower Gets Jail Time; First Lady in Action; Kellogg's Donates Phelps Boxes; Chopper Crashes into Atlantic
Aired March 12, 2009 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: No simple dip in the water. Can this man survive? A leap over Niagara Falls.
It is Thursday, March 12th. I'm Heidi Collins. You are in CNN NEWSROOM.
In this economy, you're probably watching your money pretty darn closely. Well, we are keeping a close eye on it for you, too. From the cash register to the corridors of power there's a lot going on this morning that could impact your wallet.
Suzanne Malveaux is at the White House. How will the stimulus money trickle down to your community? And in New York, Allan Chernoff keeps watch as a con man comes clean. Accused Wall Street swindler Bernard Madoff plead guilty and faces his victims.
And Christine Romans is on the money. She has new numbers and new clues on where the economy may be headed.
Let's go ahead and begin with you, Christine, part of the CNN money team joining us now from New York. I like that question about where it's all headed. But, you know, we need to talk about this, too. The initial jobless claims just came out. So what are they telling us?
CHRISTINE ROMANS, CNN CORRESPONDENT: And here are the clues from this report. They're telling us that a lot of folks are lining up every week for unemployment benefits. We saw 654,000 line up for the most recent week. That was an increase from the prior week and the big number here to watch is the number of people continuing to get jobless claims.
It's a record, Heidi, 5.31 million people continuing to get jobless benefits. These numbers are telling us what we've been telling you, that every week more and more people are out of a job and filing for unemployment benefits.
COLLINS: Yes. Obviously, the picture does look a little bit different depending on where you live, right?
ROMANS: That's absolutely true. And the government released some data recently that showed just what the unemployment rates look like across the country. Four states now, Heidi, have topped 10 percent. Look at that. It's Michigan, it's South Carolina, it's California among them.
And then you can look at the -- sort of the yellow color there. These are 6 percent unemployment rates or lower. So in the Midwest and some of these other states, you know, even Texas has unemployment rate like 6.4 percent so doing better than the national average.
So there are some parts in the middle of the country that are not feeling it quite as badly as some of the other places, Heidi. So some of you who are watching out there feeling a little bit better than some of these places where we have very high foreclosures and very high unemployment rates.
COLLINS: Yes, obviously, though, I mean, it's like the chicken before the egg kind of thing. The job loss making foreclosure crisis worse.
ROMANS: It's absolutely true. The more people who lose their jobs, then they can't pay the mortgage payment. And so this is kind of a cycle that keeps repeating. And you mentioned these most recent statistics. We saw foreclosures jump in the month February according to Real Estate Track by 30 percent.
COLLINS: Yes.
ROMANS: That's year over year. They jumped 6 percent from January to February. And what's sort of confounding to some analysts, Heidi, is that, frankly, people have thought that a lot of the different things we had been putting into place and putting a moratorium on foreclosures for some lenders...
COLLINS: Right.
ROMANS: ... they thought that had worked but you're still seeing foreclosures rise even with the things that we're trying to do to stall that and a lot of that has to do with the job losses.
COLLINS: Yes. We're still seeing the job losses. And this morning, also, Freddie Mac says it needs $30 billion more from the government.
ROMANS: Yes. You remember that the government took over Freddie Mac last year. And now they've said they need $30 billion more. And they're in a very -- I mean you look at their report. It's a troubling situation for that company, too.
So continuing to watch how Freddie Mac handles the pressure here and sort of all of its implicated roles in the housing crisis and also getting us out of the housing crisis and just bottom line here for all of us is they're going to need more of our money.
COLLINS: Yes.
ROMANS: More of our money.
COLLINS: They're going to need more. All right, Christine, we'll be watching. Thank you. ROMANS: Sure.
COLLINS: Now to a day of reckoning for accused Wall Street swindler, Bernard Madoff. He is at the federal courthouse in New York right now and is expected to plead guilty shortly to running the biggest investment fraud in history and come face-to-face with some of his investors.
CNN's Allan Chernoff looks into the case.
(BEGIN VIDEOTAPE)
ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT (voice over): Eleven days before confessing his alleged fraud to the FBI, Bernard Madoff sent account statements to thousands of clients around the globe claiming they had assets of nearly $65 billion with him. The number was pure fiction.
In fact, Bernard L. Madoff Investment Securities appears to have been holding less than 2 percent of that amount. Victims are wondering, what happened to their money?
RONNIE SUE AMBROSINO, MADOFF VICTIM: I want to make sure that the rightful people get their rightful money back.
HELEN LOUIS CHAITMAN, MADOFF VICTIM: The justice for me would be restitution to all the victims.
CHERNOFF: The bulk of the money, prosecutors charged, was used to fuel the alleged Ponzi scheme. Money coming in was used to pay investors withdrawing fund.
DAVE KETTEL, FMR. FEDERAL PROSECUTOR: It is a con game. And it's always surprising that people think that they can get away with this. It's because, eventually, in every single case, the house of cards eventually falls down.
CHERNOFF: Madoff allegedly took a big cut for himself. The criminal complaint says he spent investor dollars buying and maintaining properties. He has homes in France, Palm Beach, Florida, Montauk, New York and the Manhattan apartment where he's been under house arrest.
The government also charges Madoff laundered money transferring $250 million from his New York headquarters to a London office using some for his personal use and sending some funds back to the New York office.
Madoff also allegedly used millions of investor funds to support what had appeared to be a legitimate stock creating business which matched buy and sell orders for brokers like Fidelity and Charles Schwab.
(END VIDEOTAPE)
COLLINS: Well, it's still not clear how much money Madoff investors lost. Prosecutors estimate it was nearly $65 billion. Investigators have put it between $10 and $17 billion. Whatever the amount, it will likely cost Madoff his freedom for the rest of his life.
On "AMERICAN MORNING," CNN senior legal analyst Jeffrey Toobin talked about what's next for Madoff.
(BEGIN VIDEO CLIP)
JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST: There is one big unresolved legal question to be -- that we will learn today. Does he get locked up today or is he still out on bail? A lot of people are very upset that he has been out on bail all this time. A lot of people charged with much lesser crimes get locked up with no bail.
As of today, he will be a convicted felon. Even then, will he be allowed to stay out on bail, pending his sentencing, which probably won't be for a couple of months?
(END VIDEO CLIP)
COLLINS: While we are waiting to see what the judge does and what, if anything, Madoff says in court. Just as soon as we know, we, of course, will let you know.
A disgraced billionaire is sealing his lips. Our Allen Stanford who you see there will not testify or offer any accounting in the government's fraud investigation of him. His finance officer is also pleading the Fifth Amendment, and that's according to court documents filed yesterday.
Stanford and his top officers are accused of an $8 billion scheme involving his bank in Antigua. Today the government is expected to ask for continued control of Stanford's company assets.
Spending the money and the economic recovery plan. It's your money. Is anyone watching out for the taxpayer? Well, this morning, President Obama is demanding answers from state leaders and he's issuing a warning to them as well.
Our senior White House correspondent Suzanne Malveaux is now here to explain.
Good morning to you, Suzanne. Well, what's the point of this conference?
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Hey, good morning, Heidi. Well, obviously -- we have to apologize for a little beeping noise back there. It just started, a little honking noise.
COLLINS: It's just for you, Suzanne.
MALVEAUX: But two weeks ago -- I don't know why it happens this way. But it was two weeks ago that the governors showed up here at the White House.
COLLINS: Yes.
MALVEAUX: We got a chance to talk to -- you know, we saw Louisiana governor, Bobby Jindal, also New York governor David Paterson. All there states these governors are competing over the same pot. This pot of money, but there are steps that they have to take in order to be accountable.
So that is really what the conference is all about. They have to prove where is this money going? Is it creating jobs? Is it a transparent type of process? And so the White House has invited the top officials that the governor sends to come here, talk with Cabinet secretaries to make sure that they understand what it is they need to do to put this information out to the public, to make sure that they understand how to follow the rules.
This is all a part of trying to cut the red tape, to get through that red tape face-to-face meetings to make sure that this happens in an expedient way, but also in a transparent way, Heidi.
COLLINS: Any reason why they're having this today, specifically?
MALVEAUX: Not necessarily specifically. I mean it's just all part of the process. One thing that is happening, however, Heidi, and you're probably aware of this, is that they are putting the president and his top economic advisers out in kind of a public relations, big sales job, if you will...
COLLINS: Yes.
MALVEAUX: ... to show that they are, in fact, moving forward with the economic stimulus package, that it is creating jobs and that they are holding people accountable. I think all of that fits together. But this is just, once again, part of trying to get that money out as quickly as possible. Heidi?
COLLINS: All right. Well, we know that the president is in Washington working on all of this. So what about the first lady, though? Apparently she's hitting the road, right?
MALVEAUX: She is. She's going to Fort Bragg, North Carolina. A big military base, as you're aware. This is really a part of her agenda. She has been meeting with military families so she has been encouraging them and supporting them but this is a very high profile trip.
It's a very big base. It is all a part of her outreach, getting out there. She's mother in chief but she also has a very serious agenda. We're going to see much, much more of the first lady as well.
COLLINS: All right. Very good. Suzanne Malveaux, sure do appreciate that. Outside of the White House today.
One of the president's money men is back on the hill and on the defensive. Next hour, Treasury secretary Timothy Geithner likely to face some tough questions from the Senate Budget Committee. The lawmakers' likely target? They want to talk about the bank bailouts and the administration's new tax policies.
Members of both parties have criticized plans to raise taxes for wealthier Americans.
It lasted less than an hour but when it was over, three small towns were changed forever. The rampage and the recovery.
And take a look at this video now. A man takes the plunge over Niagara Falls. Can rescuers reach him in time?
(COMMERCIAL BREAK)
COLLINS: A community trying to recover from a rampage. Residents attended a prayer service in Sampson, Alabama last night. Many people still in disbelief over the rampage that took 11 lives and changed three towns forever.
CNN's Sean Callebs reports.
(BEGIN VIDEOTAPE)
DEPUTY JOSH MYERS, GENEVA COUNTY SHERIFF'S OFFICE: I just know that my wife and my baby girl is in heaven with Jesus right now.
SEAN CALLEBS, CNN CORRESPONDENT (voice over): Clutching pictures of his family, Sheriff's Deputy Josh Myers mourns two of the victims from yesterday's shooting, his wife Andrea and his 18-month-old daughter Corinne.
MYERS: I just don't understand why anything like this would happen. I don't know what to say.
CALLEBS: His two youngest children survived the single deadliest criminal rampage ever in Alabama. It lasted less than an hour, covered 24 miles and left three towns in bloodshed and tears.
UNIDENTIFIED MALE: We're all shocked and grieved by these evens.
CALLEBS: Authorities say 28-year-old Michael McLendon began his deadly spree by killing his mother in Kinston and setting fire to the house. He then drove to the town of Sampson where he shot and killed five people on his uncle's porch, including relatives and Deputy Myers' wife and child. His 3-month-old daughter was saved by a neighbor.
ALINA KNOWLES, SHOOTING SURVIVOR: Picked her up. Saw him coming up the road and ducked. So he wouldn't see me as he was coming up this way. I ducked. Was still ducking and trying to keep him from seeing me with that baby.
CALLEBS: McLendon continued the carnage killing his grandmother who lived next door to his uncle and firing randomly, killing a pedestrian and a woman at a gas station. Armed with assault weapons and hundreds of rounds of ammunition, McLendon headed to do Geneva. He shot at officers in pursuit, wounding a police chief. JANIE HOWELL, WITNESS: We heard the spray of gunfire. And when I pulled off the highway to keep from getting hit, he shot my van and shot the Purdue truck in front of me.
UNIDENTIFIED MALE: Wow.
HOWELL: And then he took off running and the trooper took off after him.
CALLEBS: After 50 minutes of terror, McLendon ended up here at a metal shop where he once worked. He got into a shootout with police and then took his own life.
MAYOR WYNINTON MELTON, GENEVA, ALABAMA: I personally know everyone that is involved, both the shooter and the victims, and that makes it more difficult to have to deal with.
CALLEBS: Authorities say they don't have a motive. What they do know is last week, McLendon quit his job at a boot distribution company and, at one time, he trained to be a police officer in Sampson.
GOV. BOB RILEY, ALABAMA: It really is devastating to a community this size. You know, this is -- this doesn't happen in small towns.
CALLEBS: But it did. For the towns and for a man who will never see his wife and daughter Corinne again.
MYERS: My baby girl, Corinne Gracy was the sweetest thing in the world. I don't even know how to comprehend what's going on.
CALLEBS: Sean Callebs, CNN, Sampson, Alabama.
(END VIDEOTAPE)
COLLINS: New information this morning on the deadly shooting that happened at a school in Germany. Reports now say the 17-year-old gunman warned of his plans on the Internet the night before. A German security official says the teen was in an Internet chat room and said he's sick of his life and, quote, "You will hear from me tomorrow. Remember the name of a place called Winnenden."
There is new cell phone video showing the gunman's final moments. He died after a shootout with police. But authorities say they believe he killed himself. The gunman killed 15 people, including 12 at his former school.
A memorial has been set up outside that school in Winnenden. Investigators don't know what his motive may have been.
A man is in serious condition this morning after 180-foot fall. It happened at Niagara Falls. Witnesses say he just jumped in the river and flowed over the falls. There he is in the water at the bottom of Horseshoe Falls. He had a gash on his head and was suffering from hypothermia. The chopper was used to push him ashore so rescuers could pull him out. There he is near the shore now. You can't really see it there, but he does not have any clothes on. Rescuers think the falls may have ripped those clothes off.
Reynolds Wolf standing by in the Severe Weather Center now with more on all of what's happening across the country. There's been sort of a variety of winter weather and rain and flooding and all kinds of stuff.
(WEATHER REPORT)
COLLINS: Federal investigators are making an urgent recommendation for a fix to an engine part on some Boeing 777 aircraft. The engine component has been blamed for two incidents when planes lost power including one crash that ended with injuring 13 people. In both cases the NTSB said a buildup of ice on the part restricted the flow of fuel to the engines.
He was the last president to try and reform health care. Bill Clinton talks about health care, stem cell research and his own health. The former president joins Dr. Sanjay Gupta.
(COMMERCIAL BREAK)
COLLINS: The spiraling cost of health care is dragging down the U.S. economy. That word today in a report from the CEOs of some major companies. In fact, the report says America's health care system is a liability for the global economy.
According to the Business Roundtable report, Americans spent nearly $2,000 per capita on health care in 2006. Now that's at least 2 1/2 times more per person than any other advanced country. Overall, Americans spend $2.4 trillion a year on health care.
President Obama wants to reform the U.S. health care system this year. CNN chief medical correspondent Dr. Sanjay Gupta sat down with a former president who tried and failed to change health care.
Bill Clinton was Dr. Gupta's guest last night on "LARRY KING LIVE."
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT (on camera): I really wanted to ask President Clinton about potential roadblocks when it comes to health reform. After all, he'd been there. What advice would he have for President Obama.
(BEGIN VIDEO CLIP)
WILLIAM J. CLINTON, FORMER U.S. PRESIDENT: We have a simple clearer path to the future than we did when I was there. You don't have to have an employer mandate. You don't have to have a tax increase now. And the risk of a filibuster is less.
So I think the obstacles are less than they were, plus the doctors want it now. The small business community needs it now. And the insurance community even is not unified against it now. So I think we got a real shot here.
(END VIDEO CLIP) GUPTA: Keep in mind, in many, it was deja vu all over again. If you think back to '93, 90 percent of the country wanted health care reform including 85 percent of Republicans during President Clinton's administration. So this had a lot of political will.
But President Clinton says it's still different now. The circumstances are different. There's more political will. There is also Strange Bedfellows who have positions uniting for universal health care. You have insurance companies behind universal health care. So he thinks it's a very different climate and seems somewhat optimistic.
We would have been remiss if we didn't ask him about one of the biggest health issues this week with regard to stem cells. He had been down that road before. Here is what he had to say.
(BEGIN VIDEO CLIP)
CLINTON: I appreciated the fact that the president wants to send a strong signal that scientific research on everything from climate change to the genome to the embryonic stem cells was too politicized in the previous eight years and he wants to bring it back to science. I agree with that.
But there are values involved that we all feel free to discuss in all scientific research and that is the one thing I think these committees need to make it clear that they are not going fool with any embryos where there is any possibility, even if it's somewhat remote, that they could be fertilized and becoming human beings.
(END VIDEO CLIP)
GUPTA: Now, keep in mind, when President Clinton signed the authorization of federal funds for stem cell research, embryonic stem cell research, it was a bit more restrictive, at least in language, compared to what President Obama has signed.
President Obama is leaving it in the hands of scientific committees to determine which embryos are going to be eligible for this federal funding. That's going to be an issue that we're going to continue to watch. Keep an eye on.
We also talked a bit about President Clinton's health. You know one thing that I've noticed about him, the couple of times I've interviewed him, is he does seem to have a little bit of a tremor, especially with his left hand. I asked him specifically about that. He said, look, it's just a tremor because my hand and my arm gets tired every now and then from writing.
He's been checked for Parkinson's disease. He's been examined for that. Does not have it. He's obviously recovered from heart surgery. He lost a lot of weight immediately after that heart operation, has gained some of it back. He says he fluctuates in his weight like everybody else.
He was lamenting that fact that he can't hit a golf ball 300 yards like he used to be able to. So I guess if you have problems like that, not too bad for the 62-year-old former president.
Back to you.
COLLINS: Our Dr. Sanjay Gupta.
Well, he's got fans who credit him with boosting their portfolios but did "Mad Money's" Jim Cramer go over the line? That's what one former lawmaker is suggesting.
(COMMERCIAL BREAK)
ANNOUNCER: Live in the CNN NEWSROOM, Heidi Collins.
COLLINS: On Wall Street, stocks finally notched a two-day gain. Count them two for the first time in five weeks. But with new job cuts today and a warning from Chrysler, a three-peat could be a big challenge.
Susan Lisovicz is at the New York Stock Exchange now with details.
Hi, Susan.
SUSAN LISOVICZ, CNN CORRESPONDENT: Good -- good morning, Heidi. Let's not get greedy. Let's not...
COLLINS: Come on.
LISOVICZ: Let's not get ahead of ourselves but I have to say this. You know, futures improved in the last hour on a tidbit that came just about an hour ago on consumer spending.
COLLINS: OK.
LISOVICZ: Retail sales showed a smaller-than-expected decline in February and January was revised higher.
COLLINS: Wow. That's good, right?
LISOVICZ: Very good. Very, very good. But, meanwhile, you know, I have to tell you about this. Jobless claims jumped to 654,000 last week and continuing claims hit another record high of 5.3 million people. Don't spend when they are out of work. So we have to consider that.
And we do have more job cuts to tell you. From Sesame Workshop which, of course, produces "Sesame Street," the nonprofit, is cutting 67 positions. About 20 percent of its work force. But, Heidi, your children will be happy to know that Cookie Monster, Bert and Ernie and Oscar the Grouch, all get to keep their jobs.
COLLINS: Thank goodness. Yes.
LISOVICZ: Thank goodness.
Chrysler, meanwhile, in the news. It's warning it may shut down its plants in Canada if it doesn't get significant labor concessions, and more than $2 billion in aid from the Canadian government. The automaker wants to reduce worker pay. The Canadian Autoworkers Union has agreed to a new cost-cutting contract with rival GM, which includes a wage freeze. Chrysler says it needs bigger cuts.
Also asking for money, mortgage-backer, Freddie Mac. The company says it needs another $30 billion in government aid. Freddie also says it lost nearly $24 billion at the end of last year, its sixth straight quarterly loss.
We do have a big merger in the pharma sector. That could offset some of the bad news. Switzerland's Roche Holding buying Genentech for nearly $47 billion. Genentech has one of the coolest ticker symbols around, DNA. And right now its shares are up nearly 2.5 percent. But the three major averages, well, they're not doing a whole bunch of anything. But the Dow is higher by three points. We'll take it.
COLLINS: Yes. We will take it, and we won't complain.
LISOVICZ: And we will watch it.
COLLINS: Yes, we will.
LISOVICZ: And I'll see you later.
COLLINS: We'll come back to you later on.
All right, Susan, thank you.
LISOVICZ: You're welcome.
COLLINS: CNBC TV show host Jim Cramer has investors who swear by him, but the "Mad Money" host is getting some pushback, first from comedian Jon Stewart and now a former congressman.
Here's CNN's Jim Acosta.
(BEGIN VIDEOTAPE)
JIM CRAMER, HOST, "MAD MONEY": You know, I don't want to stick my neck out anymore because it seems to get chop off every single time --
JIM ACOSTA, CNN GENERAL ASSIGNMENT CORRESPONDENT(voice-over): The war of words has gotten personal. In one corner CNBC's "Mad Money" host Jim Cramer.
CRAMER: That comedian is attacking me. Wow.
(CROSSTALK)
CRAMER: He runs a variety show.
ACOSTA: In the other corner, "The Dally Show's" Jon Stewart.
JON STEWART, HOST, "THE DAILY SHOW WITH JON STEWART": A variety show? What?
(LAUGHTER)
STEWART: He makes it sound like I'm some kind of buffoon.
ACOSTA: Who spent the last week lampooning Cramer's bad stock calls.
CRAMER: It's a fun game, and it's a lucrative game.
ACOSTA: But this video made in 2006 has suddenly gone viral, and it's no joke.
CRAMER: Go in and take a bunch of stocks and make sure that they're higher. And maybe commit $5 million in capital and do it, and I could affect it.
ACOSTA: Cramer explains to his own financial Web site, TheStreet.com, how he could influence stock prices up and down as a manager of a massive hedge fund.
CRAMER: By the way, no one else in the world would ever admit that, but I don't care.
UNIDENTIFIED MALE: That's right, and you can say that here.
CRAMER: I can't. I'm not going to say it on TV.
ACOSTA: Largely unregulated, hedge funds were attractive to wealthy investigators, and at their peak, may have controlled more than $2 trillion in assets.
TOM DAVIS (R), FORMER CONGRESSMAN: I think he's become a poster child for why hedge funds need more regulation and transparency.
ACOSTA: Tom Davis, a former top Republican on the House Committee that investigated hedge funds last fall says Cramer's comments in the video showed the need for reform in the markets.
Now, is any of this illegal?
DAVIS: It wasn't. But it should be. He may well have crossed that line. I think that's something somebody ought to be looking at. I think the tragedy is over the last few years, nobody's been looking at this at all.
ACOSTA: Cramer issued this statement to CNN. "No one knows and respects the securities laws more than I do. I didn't go to Harvard Law School for nothing. When I was a hedge fund trader in the 1990s, I played fair and I did nothing that violated those laws."
The "Mad Money" host will have a chance to explain himself in a scheduled showdown with Stewart, tonight.
STEWART: The annoying guy with the money show. I don't know. He'll be here tomorrow in this studio. ACOSTA (on camera): A spokesman for CNBC declined to comment on the Web video noting that it first became public in 2007. Cramer does have his legions of fans who say tips from the "Mad Money" host have boosted their portfolios. But over the years, Cramer concedes he has made some bad calls.
Jim Acosta, CNN, Washington.
(END VIDEOTAPE)
COLLINS: The world's richest people are getting a lot poorer just like the rest of us. According to "Forbes" magazine, Microsoft co-founder Bill Gates tops the list of the world's richest billionaires, regaining the top spot despite losing $18 billion last year. "Forbes" says now Gates is worth $40 billion.
He leapfrogged past investor Warren Buffett who was last year's richest man. Buffet is now in second place with $37 billion after losing $25 billion. Mexican telecom tycoon Carlos Slim Helu took third place with $35 billion. Overall, the world's billionaires lost $2 trillion due to the global financial crisis.
Getting the most bang for your buck. Vice President Joe Biden issues marching orders to state leaders now. They are lining up for economic recovery package money and facing strict demands from the White House. Spend the money wisely and keep the process open to the public. President Obama delivers his own message a little bit later this morning. We'll bring that to you live, as well as those pictures we were just looking at live. A couple of minutes to go there.
We want to help guide you through this troubled economy. And next week, we have something really different for you. Bringing all of our resources together. You can join us for a "ROAD TO RESCUE: THE CNN SURVIVAL GUIDE." It's coming up all next week beginning on Monday, both here on CNN, and also, of course, online at cnn.com. You really going to want to check this out.
Three years for throwing shoes. You remember the pictures. An Iraqi journalist throwing his shoes at President Bush during the president's December trip to Baghdad. The shoe-thrower was sentenced in court this morning.
CNN's senior international correspondent Nic Robertson is joining us now live from Baghdad with the latest.
So, Nic, he got three years. What was the reaction to that?
NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: You know, his family were pretty angry. They came out of the court, they were cursing President Bush and cursing the Prime Minister Nouri al-Maliki. They say that justice hasn't been done. In fact, one of his brothers was saying, look, he's done what everyone in this country wanted to do. And countries around here think he's a hero. So where is the justice in all of this? When murderers and terrorists are getting let out of jails, where is all the justice in this? There's lot of anger in the family. I think Iraqis are sort of divided over it. But there is going to be a lot of surprise as well. Quite a lot of people, including some of the lawyers, thought he would actually get off, Heidi.
COLLINS: Thought he would get off entirely. Well, at this point, what can his lawyers do? I mean, is there going to be some sort of appeal process here?
ROBERTSON: Oh, sure. They say they are going to appeal. He had 17 lawyers in the court with him today.
COLLINS: Really?
ROBERTSON: And they've got a very sort of high profile -- yes, a very high-profile lawyer here. There's sort of Allan Dershowitz of Iraqi -- the Iraqi legal system. The guy who appears on TV for all the sort of high-profiled cases to give analysis.
And he is almost state his reputation on this. He says if we fail in getting him free, then I will pay you double what I'm going to bill you for this particular case. So he personally has got a lot riding on it. But it does seem that the government is sending a very, very clear message here that it doesn't want to be embarrassed like this in the future. So they're going to have a tough job. This seems to be...
COLLINS: Well, I wonder --
ROBERTSON: ...obviously a ruling by the judges, but a political element, too, Heidi.
COLLINS: Yes. And I wonder, too, when this initially happened, obviously, there were -- there were security concerns. Nobody really knew if something could have been in the shoe or if he would have hurt the president or whatever. I mean, the security was sort of at the heart of all of this.
ROBERTSON: Yes. And that's one of the points that the lawyers are making right now. They are saying, look, this particular charge, this -- assaulting a visiting head of state, they say this doesn't stick because he wasn't actually trying to assault him, that he wasn't actually trying to kill him, just throw his shoe. So this is what the lawyers are saying.
You know, it was the high security situation, and there was no intention to kill. Just sort of mark the occasion, if you will. That seems to be the way the defense lawyers are going at the moment. But, yes, it's raised a big issue for the parliament -- for the Iraqi leaders here. How could they invite foreign heads of the state and other officials into the country when they can get shoes thrown at them amid the tightest security pretty much anywhere in the world.
COLLINS: Exactly. All right, Nic Robertson, we sure do appreciate the update on that. Thank you. President Obama meets with China's foreign minister at the White House today. They are expected to discuss rising tensions over a naval run-in. We told you about it here in the CNN NEWSROOM. It happened over the weekend.
The U.S. Navy says the USNS "Impeccable," seen here, was harassed by Chinese ships in the South China Sea. Now China countered saying the ship was in a, quote, "exclusive economic zone." They are calling on the U.S. to stop surveillance missions in the area.
She's gone from a high-powered career woman to a high-profile First Lady. Michelle Obama on a roll in her role.
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COLLINS: Love doesn't hurt. That's the message Oprah Winfrey hopes to send in the show today about domestic violence. Oprah is taking on the issue following the alleged beating of pop singer Rihanna by her boyfriend Chris Brown. Winfrey warns that if a man hits a woman once, he will hit her again. The 19-year-old Brown appeared in a Los Angeles court last week. He is facing two felony counts of assault in the alleged February 8th attack. Rihanna's attorney has asked that Brown not be barred from seeing her.
Michelle Obama, Hillary Clinton teaming up to honor women and put the spotlight on women's rights. The first lady and secretary of state presented the State Department's Women of Courage Awards to seven activists yesterday. The event also highlighted how both are dedicated to improving women's lives.
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HILLARY CLINTON, U.S. SECRETARY OF STATE: I know a little bit about the role that Michelle Obama is filling now. And I have to say that in a very short time, she has, through her grace and her wisdom, become an inspiration to women and girls. Not only in the United States, but around the world.
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COLLINS: Michelle Obama, like the president, has hit the ground running since becoming first lady, visiting schools, soup kitchens, and today, attending events in North Carolina.
Our Suzanne Malveaux looks at Michelle Obama's high profile image.
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MALVEAUX (voice-over): Inauguration night, Michelle Obama makes her debut. And she hasn't stopped since.
MICHELLE OBAMA, FIRST LADY OF THE UNITED STATES: Do you see who's up here with me?
MALVEAUX: In her seven weeks as first lady, she's captured the nation's attention like no other.
NIA HENDERSON, POLITICO.COM: Well, Michelle Obama is out of the gate much faster and more focused than most of the first ladies we've seen over the last couple of years. Laura Bush, by her own admission, had a real kind of late start. Hillary Clinton had been traveling in early March and a meeting with folks on the Hill over health care.
MALVEAUX: Gracing the covers of "Vogue," "People" "US Weekly," and "Essence." Even Oprah is moving over to make room for Michelle. It's hard to believe nine months ago "The New Yorker" satired her as a radical. This month she's sashaying down the catwalk.
M. OBAMA: You're all invited.
MALVEAUX: Once dogged by questions about her patriotism, Michelle Obama has fully embraced it. A major part of her portfolio is supporting families of the troops. Today, all eyes are on her visit to Fort Bragg.
In D.C., the first lady hit the ground running, visiting federal workers. She also made surprise appearances, going out for lunch, and visiting soup kitchens and schools.
M. OBAMA: A place where they make candy and chocolate.
MALVEAUX: But before she even became first lady, she told me her first priority was clear.
M. OBAMA: I like order. And I thrive in stability. And I find that my kids thrive in the same regards.
MALVEAUX: Mommy-in-chief to her daughters, Sasha and Malia.
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COLLINS: CNN's Suzanne Malveaux joining us now from out, in front of the White House.
So, Suzanne, has the first lady been able to do that, to put her family first and sort of maintain some normalcy here?
MALVEAUX: We've certainly seen that. We've seen both Michelle and Barack Obama attend these parent/teacher conferences for their daughters. We know that they continue their routines, reading at night. So they are trying as best they can to protect their daughters. And that this is something that's really, really important to Michelle, in particular. She and both of them talked about that they wanted to make sure that they were just normal kids, everyday kids, even though they are growing up in the White House.
COLLINS: Yes. No question about that. I would be nervous to be the teacher, though, no matter what anybody says.
Then I wonder, too, what her message is going to be. We know she is going to Fort Bragg today. And as you said in your piece, all eyes are going to be on her, because she has pledged support to military families. What exactly will be her message today? Do we know at this point?
MALVEAUX: We do, actually. I mean, this is going to be a very high profile visit. Obviously, she has visited with military families before but this is really going to be something that is different and special. She is going to talk about, much like her husband, the need for better pay, for taking care of some of the mental capacities, some of the damage that has been done from the war and that type of thing. Obviously, to support. Do anything that can support the families, as well as the troops.
COLLINS: Yes. PTSD and TBI. Is she talking more about that in a bigger, in a broader picture at this point for an agenda that she may actually be moving forward on?
MALVEAUX: Well, it's certainly an agenda that's in concert with her husband, the president. He has talked about it before. We have heard him. That was just -- he was at Camp Lejeune when he was talking about those things. We expect that she is going to be talking about things that are very similar. And we are also learning that, you know, these two are going to talk together, debrief him in a way and say, you know, these are the concerns that military families -- the moms, the dads, the people are coming to me, and these are their priorities. So, obviously, they're going to be working together.
COLLINS: OK, good. All right, Suzanne Malveaux for us in Washington this morning. Thanks, Suzanne.
Well, the wedding is off for Bristol Palin. Alaska governor Sarah Palin's 18-year-old daughter has broken it off with her fiance. They were supposed to have a summer wedding. Bristol gave birth to the couple's son in December. Levi Johnson told the reporter they decided to split, quote, "a while ago," but he didn't go into any further detail.
Kellogg's may no longer have a deal with swimmer Michael Phelps, but the cereal maker has a great deal for the hungry in California.
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ANNOUNCER: This is CNN, the most trusted name in news. Now back to the CNN NEWSROOM.
COLLINS: So those Kellogg's cereal boxes with Michael Phelps picture on them won't be just collector's items, some of them will be going to hungry people. Kellogg's has donated thousands of the boxes to the San Francisco food bank.
Last month, the company decided not to renew its endorsement deal with the swimmer, after a photo turned up showing him smoking from a marijuana pipe. Any connection to the donation? Well, the company would only say it routinely donates food nearing the end of its shelf life, but still good.
A lot of people love salt, whether it's sprinkled on their dinner plate or dunked into their processed food. But many of us eat too much salt, and that carries health risks, especially as we hit those milestone ages of 30, 40 and 50. CNN medical correspondent Judy Fortin explains.
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JUDY FORTIN, CNN MEDICAL CORRESPONDENT (voice-over): Whether we shake it or pour it, Americans are using too much salt. According to health experts, we consume 50 percent more sodium than we should. And doctors say all that salt can cause major health problems.
JANE DELGADO, NATIONAL ALLIANCE FOR HISPANIC HEALTH: What happens is that in our 30s, 40s and 50s, our level of activity goes down.
FORTIN: Although sodium plays an important role in regulating body fluids and blood pressure, most of us consume way more salt than our body's need. The American Heart Association recommends that most Americans limit sodium intake to no more than 2400 milligrams or 6 grams a day. That's just a little over a teaspoon.
DELGADO: Obviously, when you're 30, you may grab food, which are easy to make, and those that are more processed usually end up having more sodium in it. So you have to really think about what you're giving your body.
FORTIN: So watch processed foods like lunch meats and frozen dinners.
DELGADO: Salt is something that masks flavor, but it also makes it feel like there's a lot of taste in your mouth. It's a very inexpensive way to give something flavorable.
FORTIN: In pregnant women, edema or watery retention is common. But don't cut out the salt. Dropping sodium during pregnancy can cause problems for mom and her fetus by disrupting the body's fluid balance. Edema that occurs during pregnancies usually not harmful, unless the mother has high blood pressure.
DELGADO: In the first three months of pregnancy, it's very important to be health and eating healthy.
FORTIN: As we start to worry more about blood pressure, salt becomes even a bigger factor. Clinical trials have shown reducing salt in our diets decreases blood pressure in people with and without high blood pressure, and that lowers the risk of developing hypertension and heart disease.
DELGADO: We know that salt makes cells assume more water, assume more weight, assume more of a difficult situation for the body to work well.
FORTIN: Best thing to do? Watch your labels. And count your salt milligrams. For those with high blood pressure, some doctors say lowering sodium intake to 1800 milligrams would probably be healthier. But if you're diabetic, watch salt restrictions. Small studies have suggested that type two diabetics can actually see their glucose levels rise if they don't consume enough salt. That's why it's important to talk with your health professional. Judy Fortin, CNN, Atlanta.
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COLLINS: All right. Quickly, we want to get this information out to you. Some breaking news here in the CNN NEWSROOM.
We've been able to confirm that there's been a helicopter crash. It happened in New Foundland Province, Canada, of course. We're talking about 18 people that were apparently aboard this helicopter. It has gone down in the Atlantic Ocean. Again, off the coast of Canada's island Newfoundland Province. It happened today just a few moments ago. We understand, don't know anything about the possibility of survivors or any other details. Don't know if there were weather concerns, really anything more than that.
So once again, at this point, CNN has been able to confirm there has been a helicopter crash in the Atlantic Ocean. 18 people aboard. And we are working on this story to learn a little bit more for you off of Newfoundland Province in Canada. Again, we'll bring it to you just as soon as we get it here.
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COLLINS: We are getting closer to the top of the hour now. Several developing stories to tell you about.
First, your money. We are talking about it today, again and again. We're going to be talking with Christine Romans and Susan Lisovicz.
And also, we are going to be getting to Reynolds Wolf with the latest on the weather all across the country. Also, we want to make sure that we go ahead and get to more information on that helicopter crash we've been talking about. We will bring it to you just as soon as we can.
Christine, we want to begin with you, though, with more of the picture on the money situation today. And everything that's going on. We're watching closely.
ROMANS: We sure are, Heidi. We're going to try to demystify something at the very heart of the problem for the banks. These toxic assets, what are they worth? How do we figure out what they're worth? And how do we get them off the banks' books? What's the problem here, and how can we fix it? We're going to have more of that at the top of the hour with you, Heidi.
LISOVICZ: I'm Susan Lisovicz at the New York Stop Exchange, where a three-peat is a bit of a reach at the moment. We're coming off the first back-to-back gains for the stock market in five weeks. Also, we'll tell you about a major American automaker warning. It may be driven out of Canada. Heidi, more on that at the top of the hour.
REYNOLDS WOLF, CNN METEOROLOGIST: And Heidi, we're watching a storm system that may affect millions of people for the day. We've got the ugly trifecta of rain, sleet and snow moving partly parts through the southern and central plains, and back into the parts of the southeast. Right Now, Little Rock. In fact, Oklahoma -- even into Dallas, all getting the nasty mess. We're going to see delays out on the interstates, but also at many of the airports. Heidi, we're going to talk more about this, coming up.
COLLINS: All right. Very good, thanks so much, guys. Plus, the money issues all around the country, leading to ripe opportunities for criminals.
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COLLINS: In these hard times, it was bound to happen. Adults competing with teenagers for jobs. Any job, in fact. Both groups lined up early and stayed late in Denver, Colorado yesterday. More than 80 companies represented at this jobs fair offering part time and summertime work.
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UNIDENTIFIED MALE: It's a lot of competition. I guess now we have to look at adults as fierce competition. You know, it's like they're in the same game market that we are.
UNIDENTIFIED MALE: I feel for them also right now. With this being summer and getting ready to go on spring break and summer vacation, it's going to be hard on them, too, trying to find a job.
(END VIDEO CLIP)
COLLINS: Three counties combined to sponsor that jobs fair. We'll expect more in the coming weeks.
Jobs are just part of what President Obama and Vice President Biden are talking about today. Both are expected to talk stimulus with state leaders, more specifically ways to spend that government money to help their citizens.
Homeowners across the country are still waiting for help. A new report shows foreclosures were up nearly 30 percent last month compared with one year ago. And Freddie Mac, the home mortgage backer, is asking for nearly $31 billion more to help stabilize the housing market.
An Iraqi journalist has been sentenced for throwing his shoes. The court gave him three years for targeting President Bush. The journalist took aim with his shoes during the presidential visit to Baghdad in December. He has been hailed as a hero by some in Iraq.
Facing the music. The cases of two men accused of swindling investors out of everything they had. You are now looking at the federal courthouse in New York, where any minute now -- actually, we'll show it to you in just a second. Bernie Madoff is expected to plead guilty to running the biggest investment fraud in history.
And also this hour, a hearing involving Texas Billionaire Allen Stanford. He, too, is accused of running a huge Ponzi scheme. We'll stay on top of those stories.
