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Mining For Cash: Selling Gold to Pay the Bills; Protests as 26,000 Teachers Given the Pink Slip in California; Big Advances v. Big Brother

Aired March 13, 2009 - 14:03   ET

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

DON LEMON, CNN ANCHOR: In the meantime, check this out. When they filled out their home loan applications, they say the only box that really mattered was the one where they checked for race. Now, two big lenders accused of using race to set rates. We'll push it forward so you'll know what red flags to look for regardless of race, regardless of banks.

And they're not saying TGIF at the White House, not with this economy. It's always Monday with plenty of work to do.

Hello, everyone. I'm Don Lemon. Kyra is off today. I'm here at CNN world headquarters in Atlanta. You are in the CNN NEWSROOM.

And let's start the 2:00 Eastern hour at the CNN NEWSROOM with a very troubling question. If you're black, are you more likely to be forced into a bad loan? The NAACP says, yes. And it's taking two big banks to court, accusing them of steering black borrowers into sub- prime mortgages. The group is filing class action lawsuits against Wells Fargo and HSBC claiming black home buyers have been 3.5 times more likely to get a sub-prime loans than whites. Those loans carry higher interest rates and usually go to borrowers with lower credit ratings.

NAACP says many black home buyers got those loans even though their credit scores and income matched their white counterparts. The group is demanding more transparency in the loan process, especially, especially since Wells Fargo is getting Federal bailout money. The NAACP has similar lawsuits pending against a dozen other sub-prime lenders.

CNN talked to the head of the group just a short time ago and here's what he had to say, Ben Jealous.

(BEGIN VIDEO CLIP)

BENJAMIN TODD JEALOUS, PRESIDENT & CEO, NAACP: You know, the reality is - this is a great country. We've made a lot of changes. But there's some old patterns and problems that continue to persist. You know, some of this just has to do with where the banks are and where the banks aren't. And how disempowered people feel going across town to go to the bank or how, you know, the fact that walking down their street, they're going to be roped in by some broker.

It also has to do with just the art of the deal. You know, you see similar things often in the car industry where people just look at a black consumer and they say, you know what, I think this person just feels less empowered and I'm going to be able to roll them better than I could roll a white person.

(END VIDEO CLIP)

LEMON: Ben Jealous, head of the NAACP on CNN just moments ago and of course, this is a very serious allegation so the banks aren't taking it lightly.

Here's what they're saying in a statement obtained by CNN. Wells Fargo says, "the NAACP allegations are totally unfounded and reckless. We have never tolerated and will never tolerate discrimination in any way, shape or form in any of our business practices, products or services. We are proud of our lengthy record leading the industry in responsible lending practices and in support of the communities we serve. Now, which makes the very thought of a discrimination claim reprehensible to us."

That's what Wells Fargo said.

Here's what HSBC says. It also filed a statement saying stands by - it stands by their fair lending and consumer protection practices and we are very confident that we are treating our customers fairly and with integrity.

OK, we have heard from the banks, heard from them what they've had to say and from the NAACP. So we're going to move it forward now and talk to an alleged victim here. Her name is Amara Weaver and she's from Milwaukee and an NAACP member. She owns a home that has a 6.2 percent mortgage and decided to buy the house next door for her son, hoping for a similar rate. But at closing, she found out it would be 11 percent.

Why did you buy the house anyway, Miss Weaver? Welcome. Why did you buy?

AMARA WEAVER, PARTICIPANT IN NAACP LAWSUIT: Thank you.

The reason I bought the house was because the house wasn't being maintained. The house was being used as a drug house. So I wanted to not only clean it up and make my neighborhood a safer place, but to also help my community as well.

LEMON: But when you saw the fine print, I think you noticed that it was at 11 percent. I believe you were understanding is that you were shocked and then later insulted. So you went through with the deal anyway. Some would question why you even decided to go through if it's not what you thought it was going to be.

WEAVER: When I found out the rate had been changed, I was at the closing signing papers. I had already made preparation for the house to be restored. I had contractors in place. I had already put out some additional moneys in order to get the place renovated.

LEMON: So you were stuck?

WEAVER: I was kind of stuck. Yes, I was stuck.

LEMON: How did you become part of this lawsuit? Did the NAACP reach out to you? Did you reach out to them? Did you say something's going on and you took action? What happened?

WEAVER: I was at an NAACP national conference two years ago when I heard talk about what was going on. And I just spoke up and said, you know, I'm a victim. And when they asked what happened, I explained to them what happened to me.

LEMON: And it seems to have happened to a lot of other people because we got the complaints here and it's a fairly lengthy complaint. Do you think that they did this to you, you know, used to be called red lining when you would lead certain people, certain classes of people, races of people to certain areas. Do you believe that you were red lined when it comes to this particular, getting this loan here?

WEAVER: Yes, I do because I had good credit. I mean, I had -- there was no reason for me not to get a reasonable rate with the credit that I had.

LEMON: What are you hoping to get out of this?

WEAVER: Well, I think the biggest thing is exposure. You know, once you expose things, then hopefully something will happen positive.

LEMON: Did you ever think in this day and age, now it's 2009, we have our first African-American president, you were buying this place with the best of intentions to try to fix it up and keep the drugs out of your neighborhood, did you ever think in a million years that this still went on or what happened to you?

WEAVER: I'm sorry, I didn't understand you.

LEMON: In this day and age when we have just elected the first African-American president and you had the best of intentions for your home and your neighborhood, can you believe this happened to you and did you still think it did happen?

WEAVER: Yes, I did.

LEMON: You did believe it would happen to you?

WEAVER: Well, you know, I had hoped that it wouldn't, but you know, when you find yourself in a situation and red lining happens not only in mortgages, but insurance as well, but you go in with good faith, hoping and trusting in the people that you're dealing with, that they're going to treat you the way they would want to be treated.

LEMON: I appreciate it. Sorry about the little communication problem that you couldn't hear.

WEAVER: That's OK, got a little blurry. That's OK.

LEMON: It's live TV. Thank you. We wish you the best of luck. Let us know what happens to you.

WEAVER: Thank you so much.

LEMON: Again, we want to remind you the banks targeted in the NAACP lawsuit, they have responded. Wells Fargo calls the allegations unfounded and reckless and says the very thought of the discrimination claim is quote reprehensible to us. HSBC says it quote, stands by its fair lending and consumer protection practices.

We will follow up on that story.

Let's push forward to this now. No matter what color you are or what mortgage lender you use, you need to know the fine print and the red flags before you sign on the dotted line. That's where our personal finance editor Gerri Willis comes in. She's here to empower us with some knowledge about that. Gerri, what do you know?

GERRI WILLIS, CNN CORRESPONDENT: My heart goes out to Miss Weaver, right. She's trying to do the right thing and improve her neighborhood. But here's what happens. The things you want to watch out for, the red flags that you get in trouble with, when you go into a lender, maybe a mortgage broker, maybe a mortgage banker and they give you high-pressure sales tactics.

Let's say that what they're saying is I have the perfect loan for you, but they don't even know how much money you make. They don't know what your credit score is. That's a signal that something is wrong when they try to force a loan onto you. If they want to give you a loan with a balloon payment or prepayment penalties, these are really no-nos now.

These loans shouldn't be out there. They shouldn't be in the marketplace. You got to watch for people who are trying to sell you hard on these loans. And look, it's up to you to get out there, get some information, make sure that you ask a lot of lenders what they're willing to give you. Information is key, is power. I talked to the Department of Housing of Urban Development today. They have something called the Office of Fair Housing and Equal Opportunity. Let me tell you, it's their job to make sure that housing is fair in this nation. Brian Green told me he wants to hear from folks who are having problems. Go to the website, hud.gov/fair. You can also call them. You can call 800-669-9777.

There are very important laws here that makes sure that everybody gets treated equally in housing when it comes to loans and if your lender steps over that line, you have every right in the world to call and see, you know, is this a fair loan? Is it not a fair loan?

Don, I've met people who have had successful suits. You can get help. It's out there.

LEMON: Do it early, before you sign anything, before you put any more money outside of the lending process, like Miss Weaver did so you're not stuck.

Gerri Willis, our personal finance editor, thank you Gerri. WILLIS: My pleasure.

LEMON: President Barack Obama is building his administration and he's trying to build your confidence as well. We've just gotten some new comments from the president who spoke at the White House after huddling with his economic advisers. Here's his message. He says you will see results when it comes to stimulating the economy. He's telling you when.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: It is very important, even as we're focused on the financial system and the credit markets, that we are laying the foundation for what I'm calling a post-bubble economic growth model. The days when we are going to be able to grow this economy just on an overheated housing market, or people spending -- maxing out on their credit cards. Those days are over.

(END VIDEO CLIP)

LEMON: Stop being scared. New advice from one president. One of President Barack Obama's top advisers, National Economic Council Director Lawrence Summers says the recession has sparked an excess of fear in all of us. And he tells a Washington think tank the fear must end.

(BEGIN VIDEO CLIP)

LAWRENCE SUMMERS, DIRECTOR, NATL. ECONOMIC COUNCIL: You have to be prepared to prime the pump. And if you don't prime the pump and you allow the processes of decay and decline and de-leveraging to continue, it's much more costly to do it later. It's much more -- the ultimate burden's on the Federal fisc (ph) are much greater and the loss of confidence and the ability to attract foreign capital is that much more profound.

(END VIDEO CLIP)

LEMON: Another one of the president's aides telling us to follow in our footsteps. The message from Treasury Secretary Tim Geithner to the group of 20 countries whose finance chiefs are meeting outside London. President Obama has been urging the G-20 nations to start big stimulus programs of their own to jump-start their economies and the global market as a whole. The G-20 contains the world's richest nations, plus major developing countries like China, Brazil and India.

Let's talk Amtrak now. It's getting a big boost from the economic stimulus package, $1.3 billion. That's today's announcement. And making the announcement, Vice President Joe Biden, known as "Amtrak Joe," for his daily rail commutes while he served in the Senate.

CNN's Brianna Keilar joins us now from Washington. With the money that's all going around here, is it going to create jobs, Brianna? BRIANNA KEILAR, CNN CORRESPONDENT: Don this is $1.3 billion going for things like fixing and maintaining railroad lines, repairs to tunnels, replacing or repairing old cars, some for improving security. And 228 million passengers travel on Amtrak's routes all across the U.S. each year, but the busiest corridor, the region that's going to be seeing some major benefit from this is the northeast corridor going from Boston to New York to Washington, D.C.

Senator Arlen Specter, he is for this plan. Amtrak does travel through his state of Pennsylvania. He says that just one of these projects, one of these many projects paid for with the stimulus money will create at least 500 jobs for a year in his state. But Don, the overall amount of jobs still unclear at this point.

LEMON: Impact on ticket prices, the busy travel season?

KEILAR: Yes. Everyone would hope so, wouldn't they, that some of the tickets might be cheaper, Yes, but not expected to. What it could do, though, is save you time. If you travel on the (INAUDIBLE) which is Amtrak's high-speed rail system in the northeast, especially a lot of folks traveling on it between New York and Washington, DC, you could see that commute go from about three hours down to 2 1/2 Don.

LEMON: OK, Not everyone's a fan, of course, never.

KEILAR: No, not everyone's a fan. Republicans really the big critics here. Amtrak is already subsidized, heavily subsidized by the Federal government to the tune of about $1.3 billion, with a "B," dollars each year. Without that money, Amtrak would go belly up. So critics say, it's a poorly run company. They don't think the government should be propping it up in the first place. And then this stimulus money, they say it's just throwing good money after bad.

But proponents says Amtrak has to be subsidized. It's essential and that without it, you would need to add seven lanes to interstate 95, the north-south highway through the east coast that connects Boston, New York and Washington to accommodate all of those folks who take Amtrak and they say that would be impossible to do.

LEMON: Very busy, very busy there in the northeast corridor. Thank you very much for that, Brianna Keilar. And Brianna mentioned some of this, Amtrak is a major, major commuter -- carrier, especially along the northeast corridor. Their top three destinations, are New York, Washington and Philadelphia. Other commuter rail lines also use Amtrak's infrastructure and overall nearly 30 million people rode those trains last year.

We'll take a look later at whether high-speed trains will ever be the magic bullet for America's transportation needs.

(COMMERCIAL BREAK)

LEMON: Vice President Joe Biden presiding today at the public swearing-in ceremony for new Labor Secretary, Hilda Solis. The former California congresswoman faces a challenging time now. Unemployment is at a 25-year high and Solis will be in charge of enforcing U.S. labor laws and managing the unemployment insurance program.

Also being sworn in, the men filling the number two and number three positions at the Justice Department. Yesterday, the Senate confirmed David Ogden as deputy attorney general and Thomas Parelli (ph) as associate attorney general, this despite criticism that Ogden represented defendants in pornography cases and that Parelli represented Terry Schiavo's husband in that controversial right to die case. Attorney General Eric Holder has expressed concerns. He was running Justice without his top deputies.

Right now President Barack Obama has two vacant cabinet posts, more than any of his recent predecessors at this point in a new administration. There's still no one heading, no one heading the departments of Commerce and Health and Human Services. The president has named nominees for the post, but the Senate has not yet confirmed them.

Hope is fading fast that search crews will find 16 oil rig workers still missing off the coast of Canada. They were onboard a helicopter that crash landed in the Atlantic. We'll find out what's happening with the search operation right now.

(COMMERCIAL BREAK)

LEMON: There's a desperate search off of Canada's Atlantic coast. It has been more than 24 hours since a helicopter carrying 18 people crashed into the icy waters 30 miles off of Newfoundland. Sixteen are still missing. One rescue official says they'll stay out there until quote, there's no chance of locating any survivors. The lone survivor so far is recovering in the St. John's hospital. The body of another person was recovered. The helicopter was ferrying a crew to an offshore oil platform when the pilot issued a mayday.

While the rains have stopped in parts of the Midwest, the flooding threat is expected to last through the weekend. This is Monroe County, Michigan near Detroit. A state of emergency is in place there. Look at all that water. One of the rivers there is more than a foot above flood stage. You see a lot of that. Another hart- hit area, northern Indiana where there have been evacuations and road closures. Sitting (ph) here now in the CNN severe weather center with our Jacqui Jeras who is keeping a close watch on all of this. Man those floods though, nothing to mess around with. Geez.

(WEATHER REPORT)

LEMON: You know, 80 percent of firefighters' jobs is not fighting fires, but responding to medical emergencies. This week's CNN hero took years of experience here in the United States, left his job and moved to Guatemala to train firefighters in emergency care. His sacrifice has helped make the difference between life and death for many people.

(BEGIN VIDEO CLIP)

ANNOUNCER: This is CNN Heroes. PAUL EMBLETON, COMMUNITY CRUSADER: Guatemala. The firefighters are usually the first ones on the site of the emergency. They didn't have ambulances. They only had pickup trucks.

It was difficult for me to watch these patients being transported with no medical care. I witnessed several people die. It inspired me to do something.

I'm Paul Embleton, founder of the BRAVE Foundation. We provide equipment and training to the volunteer firefighter of Guatemala to help make their jobs easier.

I first came to Guatemala in 1996. And I was working as a paramedic in the United States and I rode with a firefighter. They'd asked me if I could provide training and assist in developing this free hospital care program and I said, of course.

We took the U.S. EMT curriculum and we had it translated into Spanish. Now we have 14 training programs throughout the country of Guatemala.

DAVID ALVAREZ, FIRE CHIEF, 10 COMPANY: Paul is the one to make everything happen. This make a big difference for our people in Guatemala.

EMBLETON: I'm really proud what the firemen have accomplished here. These firefighters are the true heroes.

ANNOUNCER: Tell us about your hero at CNN.com/heroes.

(END VIDEO CLIP)

LEMON: If you think your cell phone's indispensable now, just wait. New technology that could save you money, but might cost you some privacy.

(COMMERCIAL BREAK)

LEMON: About 90 minutes left to go before the closing bell and here's how the Dow is looking. All we need to tell you, it's in the plus territory, plus 17 now. We will keep watching. Of course, investors are hoping the day ends with a fourth straight day of gains. We shall see in about 90 minutes.

You know, at least two of the nation's biggest banks may have a decent year after all. Bank of America's CEO says the company was profitable in January and February, and it might not need any more government money. And Citigroup's chairman tells Reuters that his bank won't need any more public funds. Earlier this we Citi said it was profitable in the first two months of the year.

Well we know some employees at Merrill Lynch got bonuses before Bank of America bought the struggling company. We just don't know who they are. But we might know soon. A judge in New York should rule next week whether to name names. The state attorney general is pushing for them to be made public. More than $3.5 billion in bonuses were paid at Merrill. Bank of America says the information is a trade secret, and it's also a privacy issue.

Well, you know, when times are tough, people need to turn to some things. Certain things matter more than anything, and that's emotion. Take gold, for instance. That ring you inherited or got as a gift might mean a lot to you, but having some ready cash might mean even more to you.

CNN's Carol Costello explains.

(BEGIN VIDEOTAPE)

COMMERICAL ACTOR: I sent in my diamond wedding band from my first marriage and got money the very next day.

CAROL COSTELLO, CNN CORRESPONDENT (voice-over): We've all heard the cheesy commercials.

ED MCMAHON, TV PERSONALITY: Now's the time to send your unwanted gold for cash.

COSTELLO: Who knew so many would take Ed's idea and run.

UNIDENTFIED MALE: This is your 14 carat?

COSTELLO: Selling gold has been, well, a gold mine for places like U.S. Gold Buyers in New York.

UNIDENTIFIED MALE: Business is very good. Business is very good.

COSTELLO: Business is good across the country.

UNIDENTIFIED FEMALE: Five hundred dollars.

COSTELLO: From a gold selling house party in Connecticut, to the gold booth at the Mayfair Mall in Wauwatosa, Wisconsin.

UNIDENTFIED MALE: These are ten karat.

COSTELLO: Gold sellers say it's insane. Customers say, hey, times are tough.

UNIDENTIFIED MALE: I got some extra gold laying around the house. I need a little money for the gas tank, you know, for the table. So I'll go down and get cash for it.

COSTELLO: And they're willing to give up everything and anything to pay the bills. And I mean, anything.

UNIDENTIFIED MALE: We get a lot of necklaces. We get a lot of class rings. Dental gold is big. A lot of people send in the dental gold.

COSTELLO: He isn't kidding. Back in the '80s gold fillings were the rage. Today, yanking them out is. UNIDENTIFIED MALE: We ask customers not to send in the teeth, the enamel. In this case, this gentleman sent in some items like that. And we end up knocking off all the enamel.

UNIDENTIFIED MALE: Yes, it's pretty gross that it was out of somebody's mouth. But at the end of the day it's going to turn into somebody's ring.

COSTELLO: Don't laugh, depending on the quality of the gold, you could get 45 bucks a tooth. If it sounds desperate, it is.

UNIDENTIFIED FEMALE: When you have like bills to pay and some other emergency expenses, then you just trying to catch up.

COSTELLO: If you're wondering if it's worth it to sell your valuables, Caba (ph) says it depends on how much you love the item you're giving up. Once it's melted down and molded into a gold bar, you can't get anything back but cash.

UNIDENTIFIED MALE: On an average transaction for a necklace, you're looking about $200 and up depending where the market is trading at. If you're talking about a higher quality necklace, like 24 karats, you could be looking at $900 and up.

COSTELLO: Not a gold mine, but more than enough to pay the electric bill. At least for a month or two.

(on camera): Caba (ph) says he has a 2.5 percent profit margin. So on a $700 payout to a customer, he makes around $17. But he says he makes up for it with the volume of orders he's getting nowadays. Now you know.

Carol Costello, CNN, Washington.

(END VIDEOTAPE)

LEMON: Something to be said about sentiment. Keep that old jewelry.

We want to help you, of course, through the troubled economy, and next week we bring all of our resources together for you. Make sure you join us for "ROAD TO RESCUE: THE CNN SURVIVAL GUIDE" all next week beginning Monday both here on CNN and online CNN.com. The place to be.

It's time to dial up help from Gerri Willis from her desk. Our personal finance editor and her guests are answering your questions about mortgages, and also about savings.

Here's Gerri.

(BEGIN VIDEOTAPE)

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Time to get you answers to your financial questions. Let's get straight to "The Help Desk." Greg McBride is a senior analyst with Bankrate. Sonia Alleyne is career editor with "Black Enterprise" magazine. And Dani Babb is the author of "Accidental Landlord."

Let's go right to that first question. Cheryl asks, "I am retired and have been in my house for 10 years paying 7.5 percent interest rate on my mortgage. With mortgage rates dropping, should I refinance for a lower interest rate?

Dani?

DANIELLE BABB, AUTHOR, "ACCIDENTAL LANDLORD": Oh, heck, yes, you can get this under five percent. Under $417,000 balance, go for it.

WILLIS: Yes. Great idea, Danny.

GREG MCBRIDE, SENIOR ANALYST, BANKRATE.COM: Yes, go for a 15- year loan, too. Because, she cannot only keep her payments about the same, she can save herself years of mortgage payments.

BABB: Or pay twice a month.

WILLIS: That's an excellent idea. Go for the shorter-term loan. Joann asks, "Can you tell me the safe website to use to search for part-time work or work from home?"

Sonia, this is a trick question.

SONIA ALLEYNE, CAREER EDITOR, "BLACK ENTERPRISE" MAGAZINE: Yes, cause I'm reluctant to actually give you the name of a website, but there are opportunities online, particularly with medical billing, medical transcriptions, the census. And Danny just told me, online professors are actually growing, an area that's growing. So do your research. You can go online and find these places, but you have to do extreme due diligence and be prepared to do a lot of homework.

WILLIS: Because this is a big place where the scammers are.

ALLEYNE: There are scams, and there are opportunities. So you have to be really careful. Check with the Better Business Bureau.

WILLIS: Good idea.

OK, Tom asks, "My company just announced they are suspending my 401(k) contribution. Because of this and the current economic situation, should I stop contributing to my 401(k)? I've only been at it for two years and I have about $9,000."

Greg, I get this question maybe twice a week.

MCBRIDE: You want to maintain the habit of retirement savings, but without that employer match, the 401(k) may not be the best option. Instead, look at a Roth IRA. And if you have a high credit card interest rate debt, be sure to pay that off as well.

WILLIS: And the Roth IRA, again, you might have more choices out there really to choose from, right, Greg?

MCBRIDE: More choices. And the benefit is you can take the money out tax free in retirement.

WILLIS: All right.

OK, guys, great answers. Great questions. "The Help Desk" is all about getting you answers. Send me an e-mail to gerri@CNN.com, or logon to CNN.com/help desk to see more of our financial solutions.

And "The Help Desk," it is everywhere. Make sure to check out the latest issue of "Money" magazine on newsstands now.

(END VIDEOTAPE)

LEMON: We've got some help for you as well. If you're looking for last-minute low budget spring breaks, stick around. We'll show you just where to look.

(COMMERCIAL BREAK)

LEMON: All right, you know, I am a procrastinator, so I travel at the last minute all the time. And sometimes, you can get some deals. People are finding out about that now, even some of the travel companies. Deals, prices, at the last minute. We want to give you sites good to look at.

This is lastminutetravel.com. Of course, you go onto that site, just what it says, lastminutetravel.com. And then you can scroll down here and see all of the featured Cities. There's Washington D.C. is here; San Francisco, Boston, Miami.

Let's see. $110.00 to San Francisco depending where you are. Miami, $144.00. New York City $146.00. Anaheim, someone's hometown who I know right here in the NEWSRROM, 77 bucks. Las Vegas $76.00.

So keep scrolling over, you'll see all of those deals. There you go. There's Las Vegas Strip from $86 as well.

This is cheaptickets.com. I've used this before as well for last-minute trips. You can go over here and click - can you show this one, Robert (ph)? The "Cheap of the Week" button, it will tell you where to go. There you go. The "Cheap of the Week" is Clarion Hotel at LaGuardia hotel. Well, no, there you go. You can do all of this. It will tell you which hotels and which flights.

So there's some good stuff out there. So, I'm a procrastinator. I've done this a lot. You should start doing this too, because if the flights aren't sold out sometimes, in order to fill the seats, they'll drop the tickets. Same thing for the hotels.

All right. We're going to talk about a woman here who you might know. She's a gospel star. You don't know him. That is her ex- husband. We'll tell you what happened and how it has to do with - what it has to do with him maybe putting his hands on her.

(COMMERCIAL BREAK)

LEMON: Gospel singer Bebe Winans has been arrested for allegedly assaulting his ex-wife last month. Winans` bonded out of a jail in Nashville, of a jail there, yesterday. He's accused of pushing Debra Winans to the ground during a heated argument about their kids. The couple's been divorced since 2003. They were married for 16 years. So far, no public statement from Bebe Winans' camp.

Three people have been charged with providing thousands of prescription pills to Anna Nicole Smith. Among those charged, her former boyfriend, Howard K. Stern, he is out on bail right now. The other two are doctors who, prosecutors say, supplied Stern who gave them to Smith. Smith died two years ago of an overdose of prescription drugs.

They're angry and they're speaking out about it. California teachers are taking to the streets to protest massive job cuts tied to the state's budget crisis.

Terry McSweeney with our affiliate KGO has the report.

TERRY MCSWEENEY, KGO REPORTER: Don, I am here at Goldenview Elementary in San Ramon, about 30 miles east of San Francisco. Thirty-five teachers at this elementary school, and eight of them, one for each of these chairs, has received a pink slip. Statewide, 26,000 teachers have received their pink slip.

Now what this would mean, if even half of them actually do get laid off, that there are going to be larger class sizes and fewer teachers. Like a very dedicated teacher we met out here today, Jean Buicken (ph).

(BEGIN VIDEOTAPE)

MCSWEENEY (voice-over): At one level, teacher Jean Buicken is teaching her second graders what the teacher layoff notices are all about - money. But that's not all of it, or even most of it, for a life-long teacher who's been given a pink slip.

JEAN BUICKEN (ph), PINK SLIP TEACHER: The problem is, is you've got to hold it together because you've got a bunch of little people that are coming to you every day expecting you to be there for them. Yes, it's really tough.

MCSWEENEY: Parents finding out this morning are stunned.

UNIDENTIFIED FEMALE: There are very few teachers that truly put their heart into everything that they do and love the kids and devote their life to it. And she's one of those.

PROTESTORS (chanting): Save our schools! Education rules!

MCSWEENEY: There are protests all over the state on this "Pink Friday." In San Francisco, dozens of children from Eldorado (ph) Elementary walked with their teachers to protest the proposed layoffs. At Pioneer High School in San Jose, protesters were up before dawn, receiving a horn-honking support from some folks driving by.

Back here at Goldenview Elementary, you'd never know that Jean Buicken (ph) is teaching with a heavy heart. Wondering if she's one of those who will be laid off. And wondering, what would happen then?

BUICKEN (ph): You'd probably find me in some classroom volunteering. Or maybe at Starbucks trying to make a living. I don't know. I mean, that's a tough question. I've never not had a spot to be in the fall, in a classroom. It would be a first.

(END VIDEOTAPE)

MCSWEENEY: For many of these school districts facing cuts like this, and there are many throughout California, the answer is a parcel tax, some way to assess property, raise the money that way, and maybe save some of the positions that are right now scheduled to be cut - Don.

LEMON: All aboard, the bullet train, maybe. Environmentalists say a high-speed rail system could dramatically cut down on the 800 billion miles a year that Americans fly. CNNMoney.com's Poppy Harlow has our "Energy Fix" from New York.

Anything to cut that down could be a big help. Will it work?

POPPY HARLOW, CNNMONEY.COM CORRESPODENT: That is true. I prefer trains to planes anyway, Don.

A lot of people in Europe and in Asia use these bullet trains. There's a movement now to bring a network to this country. The stimulus bill set aside $8 billion for investment in high-speed rail. The request came from President Obama himself. He's a big believer in this kind of travel. Take a listen.

(BEGIN VIDEO CLIP)

OBAMA: You go to Shanghai, China, right now, and they've got high-speed rail that puts our railroads to shame. I'd like to see high-speed rail where it can be constructed.

(END VIDEO CLIP)

HARLOW: Now different regions of the country will be competing for the same stimulus money. Take a look at the map on your screen. You see a lot of plans along the northeast corridor, in Florida, in Texas, in California. Also we should know, Las Vegas wants a piece for its proposed bullet train right to Anaheim, California.

But spreading all that money around means it's not really going to go very far. Southern California, right now, probably the furthest along in its plans. Last fall, voters approved $9 billion to finance what you see a mockup of right there. A high-speed train between Los Angeles and San Francisco that would take just two and a half hours. Much faster than driving, especially when there's any traffic involved. But the $9 billion in funding and California's slice of the stimulus for this doesn't even come close, Don, to scratching the surface on the $30 billion it is estimated that that would cost.

Anything with a "B" these days is very, very expensive.

LEMON: Anything with a dollar sign, let's just put it that way.

HARLOW: There you go.

LEMON: Yes, people are very leery about that. There have got to be other issues, though, I'm sure, besides cost here, Poppy.

HARLOW: There are objections. One of the most interesting is the environmental side of it. Critics say argue high-speed rail isn't going to benefit the environment. These trains, Don, they run on electricity, as you know. Half of the electricity in this country comes from coal. So there is no automatic reduction in fossil fuels. Some also doubt these trains will attract as many passengers as they're hoping.

One environmentalist gave us this scenario, though. Imagine a bullet train that got you from New York and Miami in six hours. You could work, you could sleep, you could talk on the phone, you can walk around. Telling you, from a lot of experience at New York airports, that's much faster than trying to fly.

LEMON: All right, Poppy, thank you very much for that.

LEMON: Let's also talk cost cutting here. Coupons are great, if you remember to take them to the store. A new cell phone application, or app as we say, solves that problem. Tracking your trip and sending you sale information.

(COMMERCIAL BREAK)

LEMON: You may not believe all things cell phones can do these days. It's borderline creepy. I don't even know about it. But Susan Candiotti does.

(BEGIN VIDEOTAPE)

CANDIOTTI (voice-over): It's the kind of space-age technology "The Jetsons" would love, and it's coming to your cell phone.

(on camera): Say you go grocery shopping and you have your cell phone with you. It's equipped with GPS, so a satellite can track exactly where you are. Well, that same snazzy technology can also tell advertisers where you are. So when you get near the store, or even in it, all of a sudden your phone lights up. You flip it open, and it tells you everything that's on sale inside the store. It shows you coupons. For example, here you get $1 off milk.

UNIDENTIFIED MALE: Oh, this is way cool.

CANDIOTTI (voice-over): So cool, we asked mobile technology developer Alan Sultan (ph) to set up that demonstration. Consumers are expected to see it for real this summer. Companies call them location-based services, using GPS or Wi-Fi wireless technology that can even track you down a shopping aisle.

How about this? You're about to go to a restaurant and you get a phone alert.

UNIDENTIFIED MALE: Up pops up an offer for a restaurant two blocks down that's going to give you a free steak dinner. Who would not like that?

CANDIOTTI: This man would.

UNIDENTIFIED MALE: I'd like that, if they would just pop something up and say, hey, check out this product, it's on sale, or something like that. It would be great.

CANDIOTTI: But not everyone likes the idea of an eye in the sky tracking your every move.

UNIDENTIFIED FEMALE: I think there's a scary line there that I wouldn't want to be crossed.

UNIDENTIFIED MALE: I wouldn't want people to know what I'm doing or where I'm going and what I'll buy. You know?

CANDIOTTI: Privacy advocates are worried about what conclusions advertisers might draw from that consumer information.

LILLIE CONEY, ELECTRONIC PRIVACY INFO CENTER: It's the lack of transparency, it's the ability of the consumer to decide, do I really want you to know where I am at any particular point in the day, or is that something I want to have control over?

CANDIOTTI: Mobile technology experts insist consumers will have control. They'll have to specifically opt in, and they can always opt out of a service.

DAVID DWORZDZ, MOJIVA: I don't think it's ever going to be, you know, thrust upon the general public. And I don't think anyone would put up with that.

CANDIOTTI: For now, the mobile tech industry is policing itself. However, the federal trade commission may weigh in because there are privacy issues involved. For now, the mobile industry's advice to consumers? Be smart. Don't opt in for services unless it's a company you trust.

Susan Candiotti, CNN, New York.

(END VIDEOTAPE)

LEMON: That is it for me. The next hour of the CNN NEWSROOM with Rick Sanchez right now. Take it away, Rick.