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Back to Work on Health Care Reform; War Strategy for Afghanistan; Terror Suspect Pleads Not Guilty

Aired September 29, 2009 - 11:00   ET

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


TONY HARRIS, CNN ANCHOR: And good morning, everyone. It is Tuesday, September 29th. And here are the top stories for you in the CNN NEWSROOM this morning.

It is back to work on a health care reform bill. Senate liberals make another pitch for a government-run insurance program today.

Your personal information -- data brokers collect and sell it. Sometimes, though, the facts they're selling about you are flat-out false.

And federal agents snag drug profits bound for Colombia. Millions of dollars in cash neatly packed in cubes and hidden in fertilizer.

Good morning, everyone. I'm Tony Harris. And you are in the CNN NEWSROOM.

Health care reform showdown. The debate over the so-called public option at the center of the Senate Finance Committee meeting happening right now. Two Democratic senators are pushing the public option in separate amendments. One of them is Senator Jay Rockefeller of West Virginia.

(BEGIN VIDEO CLIP)

SEN. JAY ROCKEFELLER (D), WEST VIRGINIA: Seventy percent of the American people want this. Of a study done of doctors, I think you can say at least 70 percent of doctors, all that I've talked to over the weekend, want this.

Doctors are the ones who are most intimately involved with the health care system, and with the paperwork and with insurance companies. And you would guess that doctors wouldn't want to change the status quo wrong. They want this public option.

(END VIDEO CLIP)

HARRIS: OK. The debate over a government-run insurance plan is pitting Democrats against Democrats. Liberals view it as essential. Moderates say it won't pass the Senate.

Live now to Capitol Hill and congressional correspondent Brianna Keilar.

Brianna, good morning to you. Will this public option be a public debate among Democrats?

BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: No, it will be. And it's already shaping up to be that way, Tony. And you can really feel the tension. And here is why.

This committee behind me, the Senate Finance Committee, is poring over a bill, has been now going on five days, looking at a bill that was put together by Senator Max Baucus, a Democrat. And yet, this bill is considered pretty middle of the road considering there are a lot of liberal Democrats who are unhappy with it, including Senator Jay Rockefeller, who we just heard from, including Senator Chuck Schumer from New York, who we are going to hear from, introducing plans to add that public option, that government-run insurance plan.

They are Democrats, and they are essentially railing against the key point of this bill that the Senate Finance Committee is looking at, a Democratic bill. So, what you've been hearing Senator Rockefeller say is this bill doesn't do nearly enough to bring down the cost of health care.

This bill that includes health care cooperatives, non-profit health co-ops instead of that public option, that government-run insurance plan, Tony, that also includes an individual mandate, meaning everyone will have to get insurance, he is saying, look, you don't have that public option to drive down costs. And you are providing tens of millions of new customers to insurance companies, who we heard Senator Rockefeller say, frankly, he doesn't trust. He thinks they will just drive up the premiums on people, and so he says this bill, put together by one of his fellow Democrats, is essentially a giveaway to insurance companies.

HARRIS: So, Brianna, look here, so what is this, this debate that we're seeing today over these amendments for a public option? Is this just getting these opinions on the record?

KEILAR: It is getting the opinions on the record. It's a couple of things.

There are supporters of the public option out there, organizations, and they are really looking at this fight today to try to renew some of the debate over the public option and trying to get their voice out there, because, quite frankly, the public option has seemed to be very endangered, as we have watched this committee seen as the best chance to get a bill on the Senate floor that will actually pass. And it does not include that government-run insurance plan.

But also, Senator Jay Rockefeller, Senator Charles Schumer, they are putting out this change to add this government-run insurance plan because all of the other bills that Congress is considering include that public option, Tony. So, this may not be -- even though we're not expecting it to pass, and I'm sure Senator Rockefeller will tell you he's not expecting it to pass, it's basically putting a marker out there for maybe future areas where they could change this, either on the Senate floor, maybe when they have to meld their bills with the House bill, which we are expecting will have a public option in it when it is finally passed by the House.

HARRIS: And before that, this bill would have to be melded with the health bill, the bill in the HELP Committee.

KEILAR: Exactly. There are two bills in the Senate, this one here that's being debated, and also that Senate HELP Committee bill which has that government-run insurance plan. Before there's a full vote on the Senate floor, these two would have to be merged.

HARRIS: Absolutely. All right.

Brianna Keilar on Capitol Hill for us.

Brianna, thank you.

Now let's fast forward through the day's other top stories.

Terror suspect Najibullah Zazi will be arraigned this hour in federal court in Brooklyn. Zazi was charged in a bomb plot that investigators say targeted New York. Prosecutors call the Afghan national a flight risk and want him jailed indefinitely.

In Chicago, a bond hearing today for a suspect in the beating death of an honor student, Derrion Albert. Three other young men held without bail. All are charged with first-degree murder.

Graphic cell phone video shows the attack on Albert. He is hit in the head with a piece of lumber and stomped.

(BEGIN VIDEO CLIP)

CMDR. EDDIE WELCH, CHICAGO POLICE: Right now we're not saying that this is a gang-related incident. Right now, this appears that you had a young man that was making attempts to go home.

(END VIDEO CLIP)

HARRIS: Well, the weather could be a wildcard today for crews battling a wildfire in Yellowstone National Park. Forecasters say winds are expected to pick up, but there's also a chance of rain and possibly snow.

The park is open. However, a main road is closed. The wildfire has burned 9,300 acres, about 14.5 square miles.

Afghanistan's presidential election, a topic right now for the United Nations Security Council. Diplomats may call for a new vote, a major recount, or endorse the apparent winner. That would be incumbent Hamid Karzai, with 54 percent of the vote. But the election won't be certified until voter fraud investigations are completed.

(BEGIN VIDEO CLIP)

BAN KI-MOON, U.N. SECRETARY-GENERAL: We have full confidence and trust in the Independent Election Commission, as well as election complaints of (ph) commission. So, I understand that the final results may be available on or around October 7th.

(END VIDEO CLIP)

HARRIS: President Obama today formally begins his review of U.S. war strategy for Afghanistan.

White House Correspondent Suzanne Malveaux joining me now.

And Suzanne, good to see you.

Who will the president be talking to today?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Tony, it's going to be a series of meetings. This really kicks it off.

He's going to be meeting with the NATO secretary-general, Rasmussen, the two of them, in about 30 minutes or so here at the White House. Obviously, they're going to be talking about troop levels and what kind of commitment the NATO allies can give.

This comes at a critical time, Tony, because we are talking about more than 40 countries that are involved, that have got boots on the ground. There's about 38,000 or so, and some of these countries, these allies, they are either reducing or ready to pull out their troops -- Canada, Italy, the Netherlands, you name it.

And so, they are looking for some assurances here. What is the miss going forward? What is the strategy?

President Obama, obviously grateful for those NATO troops that are sticking with them. And they want to see, do they need more, essentially?

We had that report from the top commander, the top U.S. commander in Afghanistan, General McChrystal, saying, look, we need additional troops here. But he also -- it was pretty damning when he said that these NATO troops, they were not up to speed, they weren't doing a good enough job to meet the strategy of the mission. He's going to be talking about the scope of that mission looking forward.

And Tony, later in the day, he's going to meet with his secretary of defense, Robert Gates, to continue the discussions. And then tomorrow, Tony, that is the big day when he meets with his national security team on Afghanistan. We're talking the chair of the Joint Chiefs, Secretary Clinton, Secretary Gates, the vice president. All of them together in a room to debate what to do next, because there is a lot of debate, Tony, taking place about the scope and the direction of this mission in Afghanistan.

HARRIS: Well, you mentioned the vice president. Now, he has got his own ideas. What about that?

MALVEAUX: Well, it's quite different than what we've heard from General McChrystal in that report that was leaked. McChrystal calling for anywhere from, like, 10,000 to 40,000 additional troops on the ground. Vice President Biden is looking at something more focused and limited in scope. Instead of protecting all of the Afghan people, bolster their police, bolster their military, but be more focused in going after the Taliban in Afghanistan, going after al Qaeda in Pakistan. And that would require fewer U.S. troops, fewer soldiers, maybe even pulling some of those soldiers out from Afghanistan.

And that is just one of the many ideas, Tony, that people within this White House, in this administration, are debating right now, and will continue to do so in the next couple of weeks, because President Obama has some real tough decisions to make.

HARRIS: Boy, wouldn't we love to be in the room for that debate? It's such an important debate today and tomorrow, and the rest of the week.

White House correspondent Suzanne Malveaux for us.

Suzanne, appreciate it. Thank you.

Health care reform -- your money, your health. What plan is best for you? Senior Medical Correspondent Elizabeth Cohen breaks down the Baucus proposal. That's next.

(COMMERCIAL BREAK)

(WEATHER REPORT)

HARRIS: Well, I apologize for that, Rob. We've got a bit of breaking news here.

This is the attorney for Najibullah Zazi. His name is J. Michael Downing. Want to have a listen to what he is saying right now.

(JOINED IN PROGRESS)

J. MICHAEL DOWNING, ATTORNEY FOR NAJIBULLAH ZAZI: This is the essence of a conspiracy charge. I'm not saying the government does not have this evidence, but I haven't seen it yet. And to use a hackneyed phrase, I'd like to stop this rush to judgment, because what I've seen so far does not amount to a conspiracy.

I don't know the names of anybody else that allegedly conspired with Mr. Zazi. Those names have not been produced. And once again, unless Mr. Zazi has an agreement with one or more people to commit an unlawful act, the conspiracy charge cannot be sustained.

All right. Thank you, guys.

HARRIS: All right. That's the attorney for Najibullah Zazi. His name is J. Michael Downing.

And he, as you heard there, is questioning the government evidence so far against his client, saying that the government, at least so far, has not produced any conspiracy evidence. So, we will continue to follow developments in that story. And I believe our Deborah Feyerick is covering the hearing today, and we will talk to Deb in just a bit.

We're back in just a moment. You're in the CNN NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: Let's see -- just moments ago, you heard from the attorney for Najibullah Zazi in New York City. There was a hearing that I believe has just wrapped up there for the suspect in a terror plot to blow up a transportation hub in the city.

Let's get to our Deborah Feyerick. She's been covering that hearing.

And Deb, good to see you.

What came out of the hearing? And then maybe you can share with us some of the comments made by the attorney before we could get there.

DEBORAH FEYERICK, CNN CORRESPONDENT: Absolutely. Well, here's what we can tell you.

Najibullah Zazi entered the courtroom. He was wearing a dark sort of prison outfit with a bright orange T-shirt, bright orange sneakers as well.

He didn't say very much. He was leaning over to his lawyer. His lawyer entered a not guilty plea on his behalf, saying he was not involved in any sort of conspiracy, and that the government has yet to produce evidence, according to his lawyer, that a conspiracy actually took place.

Now, the lawyer is back at the microphone making a couple of statements as to what this case is likely to involve. But we can tell you that prosecutors were very firm in terms of that much of the material that's going to be presented is going to be classified, that anybody who's going to be in the court during some of the testimony that's presented will have to have specific credentials to listen to that classified material.

All that's going to be filed. The case was designated a complex case. That means that a speedy trial is sort of waived because there's going to be language issues, there's going to be travel issues. All of this as they try to piece their case together against Najibullah Zazi -- Tony.

HARRIS: All right. Deborah Feyerick, we'll let you get back to the statement that's being made now by the attorney for Najibullah Zazi. He is speaking with reporters right now.

Let's turn our attention now to health care.

The health care reform debate back under way today. The Senate Finance Committee is considering amendments to Chairman Max Baucus' proposal.

We want to talk more about the Baucus plan and what it means for you. Senior Medical Correspondent Elizabeth Cohen is here, and she has worked up several examples.

We're back to the avatars again?

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: We are.

HARRIS: Now, see, we were talking about this last week, and I was really excited, because what I was interested to know is exactly what we just mentioned here, what the various aspects of this plan mean for you and for me and for everyone else who will be impacted by this. This is all of us.

COHEN: Right, because we can talk until the cows come home about Senator this wants this and Senator that wants that.

HARRIS: Yes.

COHEN: But what we all want to know is, if this thing becomes law...

HARRIS: At the end of the day...

COHEN: ... at the end of the day, what does it mean to you and to me?

Now, what the Baucus bill means to you and to me depends on who you and I are. And so what we've done here at CNN Medical is we've made up five different families, and we're going to tell you over the course of this week what the Baucus bill means for these five families and five very different situations.

We're going to start with a family that we call the Smiths, because, you know, we're so creative. We called them the Smiths.

Now, this Smith family, you can see, they have newborn twins. They're a young family. They have their own high-tech business. That's why mom's holding a laptop computer. It's their own business.

They do not have health insurance through this brand new business, and they are having a tough time finding an affordable policy. So, we are going to tell you what the Baucus plan means for a family like this.

Because you know what, Tony? There are a lot of families like that.

HARRIS: Awesome. Awesome. Awesome.

And so we'll start with the Smith family.

COHEN: And then we'll move on to other families.

HARRIS: And we'll move on. COHEN: That's right.

HARRIS: I love it . I love it. I love it.

Thank you.

COHEN: Great. Thanks. See you in a bit.

HARRIS: All right.

Let's get you caught up on our top stories today we're watching for you this hour.

The head of Iran's nuclear program says his country will allow a recently revealed nuclear facility to be inspected, but he didn't say when. Last week, Iran acknowledged the existence of a covert uranium enrichment site, and that raised international fear that Iran is trying to develop nuclear weapons.

Filmmaker Roman Polanski remains in a Zurich jail this hour. An attempt to have him removed from Swiss custody is on hold. He is fighting extradition to the United States for a child sex charge.

A sixth-grader in Greenwood, Missouri, claims a key to the city. What a great story this is.

Jackie McGee (ph) picked up the civic award after raising money -- let's take a shot of Ms. McGee (ph) here. Raised money to buy a flagpole for City Hall. She used money from an aluminum can recycling business she started right there. She started it last March.

These days, millions of you are looking for a new job. Most companies require a background check. But what happens when that turns up false information on you?

Personal finance editor Gerri Willis has information you need to know, and that's next.

(COMMERCIAL BREAK)

HARRIS: Data brokers, they sell your personal information. But what happens when they get it wrong?

CNN's personal finance editor, Gerri Willis, with part two of her series "Watching You 24/7."

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: That was all the good stuff.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR (voice-over): A job offer with good benefits, a dream for this woman's husband that suddenly turned into a nightmare.

UNIDENTIFIED FEMALE: You know, he did the drug test, and of course that was fine. And all we needed was the background check. And that was supposed to turn out fine.

WILLIS: But his background check revealed two felony convictions. And like that, the job offer was gone.

She wants her identity hidden to avoid further problems for her husband.

UNIDENTIFIED FEMALE: And we just were in shock.

WILLIS: In shock because the records belonged to another man with the same name and same birthday as her husband.

UNIDENTIFIED FEMALE: How did they put these two together? You know, how could they miss this?

WILLIS: The report came from ChoicePoint, one of the nation's largest commercial data brokers, part of a multibillion-dollar industry that sells your personal information obtained from public and private records to employers and law enforcement.

Privacy advocate Lillie Coney says most people have no clue what's in these databases that include incorrect or outdated information.

LILLIE CONEY, ELECTRONIC PRIVACY INFORMATION CENTER: Let's say it was an arrest that was based on faulty information and it was resolved, and there was no trial, no conviction. They still have that original arrest record that may be in a database somewhere that is being passed along repeatedly to people outside of your knowledge.

SEN. PATRICK LEAHY (D), VERMONT: I think most of us don't know how exposed we are.

WILLIS: Senator Patrick Leahy has introduced legislation to make those databases more assessable and more secure.

LEAHY: I want to know what's in my records and I wan to know how to stop misinformation in my records. And today, people cannot do that with surety.

WILLIS: For its part, ChoicePoint says that under the Fair Credit Reporting Act, "... individuals may obtain copies of previously prepared reports about them, as well as public record information used for such reports and correct such information as appropriate." The company says those corrections typically take two weeks.

Time this woman says her husband didn't have.

UNIDENTIFIED FEMALE: I called the Department of Justice and the FBI.

WILLIS: And her congressman, who was able to get ChoicePoint to quickly correct the mistake. Her husband got the job, but she's still concerned.

UNIDENTIFIED FEMALE: Because this will happen again. If my husband ever has to have a background check, or maybe if he ever changes jobs, that record is out there.

(END VIDEOTAPE)

HARRIS: And Gerri joining me live now.

Gerri, what can you do to make sure this doesn't happen to you?

WILLIS: Well, if you're in the job market right now, it makes sense to get your ChoicePoint report, which you can order for free at their Web site, ChoicePoint.com. It usually takes a couple of weeks to get your report. But when you do, scan it for errors and contact the company if you find problems.

Now, while you're at it, contact AnnualCreditReport.com to get a free copy of your credit report. Not all employers, Tony, are allowed to look at a credit report, but more and more of them do.

HARRIS: That's terrific stuff. Thanks again, Gerri. Appreciate it.

WILLIS: My pleasure.

HARRIS: So, I get to rant a bit more as some CEOs are going to get those big bonuses. Come on, guys. Really?

(COMMERCIAL BREAK)

HARRIS: Homeowners all across the country have seen the value of their greatest asset literally tumble, but a new report shows home prices are finally stabilizing.

Susan Lisovicz on the floor of the New York Stock Exchange with more.

And Susan, we have to stabilize before we can see some increases in home values.

SUSAN LISOVICZ, CNN BUSINESS CORRESPONDENT: That's right, Tony. And there is a growing sense that the worst is over with this housing crisis, because prices for homes in the 20 largest cities in the U.S. have risen now for the third straight month. You can qualify that as a trend.

The exact amount, 1.6 percent. This is the S&P/Case-Shiller report. The biggest jump registered in Minneapolis, up better than 4.5 percent; San Francisco, up about 3.5 percent; Chicago and Atlanta, each up about 3.5 percent, Tony.

The only declines in fact on this list were in Las Vegas, which has been the epicenter of speculation and the housing bust. And Seattle -- Tony.

HARRIS: Wow. All right. An uptick in Atlanta. Good.

I need that to work for me.

LISOVICZ: Your house may be worth more.

HARRIS: Yes. I really need that. OK, so Susan, we're seeing some month-to-month increases, but, look, we've got to be clear here. The housing market still has a very long way to go.

LISOVICZ: That's right. I kind of, you know, compare it to the stock market, you know...

HARRIS: Absolutely.

LISOVICZ: ... gains, you know, put it in perspective. The fact is, housing prices are at 2003 levels, and if you just compare it to last year, we're still down about 13 percent. In fact, all 20 cities in this report are registering declines. What we're seeing is, the pace of declines is slowing.

We've seen that in lots of other industries as well. And in fact, the report says that everybody should be cautious. Why is that? Well, that first time homebuyer tax credit, there's been a lot of talk about extending it, but at this point, it is still set to expire at the end of November, and of course, foreclosures and the jobless rate are expected to rise.

And it's concern about jobs that hits consumer confidence. That was the other major report today. Unexpectedly declined last month, and that hit the stock market. We had opened higher, extending yesterday's big gains. Right now the Dow is off by 21 points. Nasdaq is down seven points -- Tony.

HARRIS: Yes. A nice run-up yesterday, though, huh?

LISOVICZ: Very nice.

HARRIS: That was really nice.

LISOVICZ: It was the best gains in about a month -- Tony.

HARRIS: Yes, yes. OK, Susan, see you next hour.

LISOVICZ: You got it.

HARRIS: You know, it looks like Wall Street is on the road to recovery, and with it we could soon see a rebound in executive bonuses.

Christine Romans joins us. Come on, Christine. Is it -- well, look, I'm not against the idea of these CEOs making bonuses, and it's not just the CEOS who make these bonuses. Let's be clear about that.

But I think everybody around the world now -- we saw this at the G-20, you were there -- talking about doing something with executive compensation, trying to attach it to performance.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Well, let's talk about performance...

HARRIS: Yes.

ROMANS: ... because that's what this is about, Tony. Look at what's happened in the market this year. Look at what's happened to the return of revenue and the return in the stock market of some of these stocks. The S&P 500 is up sharply. The Dow is up sharply since March.

You look at a chart of stocks since March, and you can see a huge rally. The S&P up almost 60 percent. The Nasdaq up 68 percent since March. And revenue has grown sharply for JPMorgan, for Goldman Sachs and for many others.

While we're having some regional banks failing, these big banks, these Wall Street banks are doing very well. And frankly, that's what the bonuses are tied to. They're tied to the performance. They've had a pretty darn good bonus -- performance this year in terms of their stock.

So, what are we looking at? Well, 2006 was the record year. 2006 you saw $34 billion in bonuses on Wall Street. Then 2007 didn't quite match that. 2008 it plunged. It was down 44 percent. Well, plunged. I mean, still, it's a heck of a lot of money considering that back in 1985, the bonus pool was $1.9 billion on Wall Street, but we won't go there.

So, 2009 you could see bonuses climb. Last year, it was about $120,000 ahead, you know, when you average it out. Now there are fewer people working on Wall Street and a bigger bonus pool, so you're likely to see those bonuses move higher.

HARRIS: Well, wait a minute. But isn't this directly attributable to the bailout efforts, public money to shore up these banks to give them the space and the room to turn some of this around?

ROMANS: And this is what they have not addressed yet.

HARRIS: It's a little unseemly.

ROMANS: This is what they have not addressed yet, Tony. And you know, you've heard from some CEOs and some executives who've asked their employees to please be -- to show discretion with their bonus money and the like. But look, I mean, this is the corporate culture still on Wall Street. It has not been changed.

You have a relatively small salary, and then most of the compensation in some cases comes from the bonus, and the bonus is tied to how well you do that year for the business. And they're going to argue that they grew the business this year.

The thing that kind of irks me on the executive level for this is that when -- you know, because I can't really make a big argument for the people who are working, you know, the day-to-day joes working in the banks, and that's just the way it is.

But when an executive makes a lot of money because the times are tough, and their revenue has fallen, and they need the money to keep the good talent, and then they get a lot of money when times are good because they're being paid for performance, I think that's more like being paid for a pulse. And that's what they have to change.

HARRIS: Good way to put that. All right, Christine, appreciate it. See you next hour. Good stuff.

ROMANS: OK. Bye.

HARRIS: Tired of paying four bucks for a latte? Starbucks is out with an instant coffee. Wow. Read about it at CNNmoney.com.

And new information about the beating of Chicago honor student Derrion Albert. One of four suspects will be in court early this afternoon for a bond hearing. A judge has already ordered the three -- other three held without bail.

The young men range in age from 16 to 19. They're charged with first-degree murder. A disturbing amateur video shows the savage attack on Albert. He is hit over the head with what appears to be a two-by-four. Then his head is stomped.

Police say Albert was walking home from school and stumbled into the brawl. The number of people killed in Chicago in 2009 more than double the number of U.S. troops killed in Iraq in the same period. A mother who lost her son says Chicago needs to wake up and step up.

(BEGIN VIDEO CLIP)

ANNETTE NANCE, SON KILLED IN 2007: We stand here again today for the same purpose -- another young life taken out of the streets of Chicago, another promising future just snuffed out because of violence. We have to do something different here, because obviously we didn't solve the problem. We need the young people to step up. It's going to take the young people to make the difference, not just us standing here today and coming out every day.

Young people have to stand strong. They have to tell us what they know. They know what's going on in these schools. They know what's going on in these streets. Had it not been for this video camera, these young people would not have been caught. Nobody has called in or said anything.

So, it's a shame that in this day in age, it's a shame we allow our own to take our own after we've come so far. We've come from slavery. We've come from sitting in the back of the bus to this. We've come to this, watching our young people being killed on the street.

It's ridiculous, and we need to stop. We need to stand up. We need to solve our own problems. We can't depend on Washington to solve our problems. Of course, they're getting Olympics now. So, nobody's concerned about this but us, especially the parents who suffer every day. We suffer every day. You have no idea what this walk is.

I don't wish this walk on anyone. I don't ever want anybody to walk in these shoes, especially this family, too. These are good kids that are getting killed. These aren't gangbangers. They're out here doing all the right things.

Someone said he was in the wrong place at the wrong time. No, he wasn't. He was in the right place. He was coming from school. Let's stop saying these things. You know, you should be able to walk down on the street.

(END VIDEO CLIP)

HARRIS: And that is real talk. Of the 286 homicides in Chicago this year, more than three dozen of the victims have been students.

The devastation from flooding in the Philippines is growing as victims search for food and water. At least 240 are confirmed dead and nearly 2 million homes flooded. Now, two more storms brewing in the Pacific, threatening to complicate relief efforts.

CNN's Dan Simon (SIC) has more from Manila.

(BEGIN VIDEOTAPE)

DAN RIVERS, CNN CORRESPONDENT (voice-over): Filthy brown pools of water remain in some parts of Manila, the remnants of the worst flooding here for 40 years. Much of the water has now receded, but some areas are still submerged, four days after tropical storm Ketsana drenched this city.

There have been rumors the Angat Dam north of Manila was open to stop it overflowing, contributing to the rapidity of the flood, but staff have told CNN only small amounts of water were allowed out gradually and denied they were to blame.

The displaced now number in the tens of thousands. The death toll has risen steadily as has the collective grief. This family lost three of their five children. Two are still missing, and so is the husband.

"I don't know what happened," this woman says. "We were on top of the roof, and we got separated. The next day when I came back to our house, I saw my eldest was already dead, and my aunt saw the other child buried in the mud."

But there were also remarkable stories of heroism. Ray Lee, a prominent judge, singlehandedly saved 32 using his Jet Ski.

RAY LEE, RESCUER: There were cries for help. So, I returned to other houses or roofs and retrieved all of the people there.

RIVERS (on camera): The people could have died if you hadn't rescued them.

LEE: Yes. They could have died.

RIVERS (on camera): Outside the presidential palace, people queue for food handouts, and inside, volunteers prepare aid packages. But the government is still being stunned by claims it's done too little, too late. The economic damage of this disaster is also becoming clear. And now the capital waits to find out if another tropical storm will deluge it again in coming days.

Dan Rivers, CNN, Manila.

(END VIDEOTAPE)

HARRIS: How can you help? Well, log on to CNN.com/impact. There, you will find links to groups that you can donate to to give the Filipinos the help they desperately need right now.

And let's get you caught up on our top stories. Britain's Royal Navy says it's made its largest drug bust ever. The navy seized a whopping 5.5 tons of cocaine off this ship operating off the coast of South America. They arrested the suspected smugglers and fired on the boat to sink it so it can't be used -- wow! -- to smuggle again.

The families of three hikers held in Iran say they're encouraged after Iran's president suggested he might intervene. The brother of one of the hikers told CNN there has been no contact with the hikers. The three were detained in late July after straying into Iran while hiking in northern Iraq.

And turning cow manure into energy. Two farmers in Washington state got the bright idea to convert manure into methane gas to help power 500 homes.

(BEGIN VIDEO CLIP)

KEVIN MAAS, FARM POWER: This is local energy. If this was not being produced here, it would probably be produced with imported natural gas. So, this is money that's staying in the community.

(END VIDEO CLIP)

HARRIS: The farmers say after the manure is processed, sterilized leftovers make a great bedding for the cows' stalls, and that saves them another $4,000 to $5,000 a month. Keep it together, Tony.

We're getting some help breaking down health care reform in terms that we can understand. If you're a newlywed making $44,000 a year, just what options or choices do you have? Senior medical correspondent Elizabeth Cohen rejoins us next.

(COMMERCIAL BREAK)

HARRIS: OK, let's talk about it. Health care reform and what it means for you. Senior medical correspondent Elizabeth Cohen is back with us. And earlier, Elizabeth introduced us to the Smith family. Now she is here to explain how the reform bill by Senate Finance Chairman Max Baucus -- which isn't a bill yet. It's still a plan. They're marking it up into a bill, which maybe we'll have by the end of the week. Who knows for sure -- how it will affect the Smith family. All right, Elizabeth. We've teed it up. I can't wait to see it.

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: All right, Tony. Well, we here at CNN medical thought if the Baucus bill becomes law, what does it mean for specific people? So, we invented the Smith family.

Now, you can see the Smith family here. They just started their own high-tech company. That's why mom's holding a laptop. And they have newborn baby twins. Now, because they just started out, they are making $44,000 per year.

Well, they said, hmm, we've got to buy our own insurance. We don't get it from our employer because we're self-employed. You know how much it costs approximately to go out there and buy your own insurance for a family of four? I know you're lucky enough you don't have to do this, Tony, as am I. It is about $15,000 a year.

So, you can see that's a huge chunk out of their income to spend $15,000 a year on insurance when you're only making $44,000 a year. So, we asked the question, what does the Baucus bill mean for them? What it means is that instead of paying $15,000 a year for a policy, they'll end up paying $3,000 under the Baucus bill.

HARRIS: Really?

COHEN: So, as you can see -- yes, that's a -- right, that's a big change. And this family, you know, they're not poor. They're making $44,000 a year, but still they're getting quite a bit of help.

HARRIS: And that's through breaks and credits and the like.

COHEN: Tax credits, correct.

HARRIS: Tax credits.

COHEN: That's right. That's right.

HARRIS: OK. And that's at the heart of what's going on right now, this idea of affordability, to make these plans affordable for families and individuals. So, that's big. I'm also curious if there is anything in the plan that's being worked on now for the Smith children.

COHEN: Right. So, the Smith kids, you see the two little cutie pies right here.

HARRIS: Yes, yes.

COHEN: They, because of their parents' income, would be eligible for a program called the CHIP, the Children's Health Insurance Program. And that would bring down the parents' costs even more.

And I want to note, Tony, all of these costs we're giving are approximate because this is in the future, and no one can predict down to the dollar. But as you can see, they're going to save a lot of money on their premiums, and then their kids will also be eligible, in addition, for the CHIP program.

HARRIS: And that's interesting because you go back to those original numbers. If you want to scribble those back up on your touch screen, that would be helpful for us as we look at this. So, we're talking about $15,000 a year on an income of $44,000.

And what we're talking about, and what seems to be at the center of the debate right now, is what percentage -- and really, we're talking about on a percentage basis -- what percentage of your income should go to health insurance? And that's at the heart of the affordability debate right now...

COHEN: Right...

HARRIS: ... for individuals and for families.

COHEN: Exactly. Should a family of four that makes $44,000...

HARRIS: Yes.

COHEN: ... should they have to spend 15 of that 44...

HARRIS: Yes.

COHEN: ... 15 out of 44 on insurance?

HARRIS: Yes.

COHEN: That's a big chunk.

HARRIS: So, what are we talking about? Should it be 10 percent? Should it be less than 10 percent?

COHEN: I think everybody would have a different answer to that...

HARRIS: Yes.

COHEN: ... and that's why there's so much arguing about this bill.

HARRIS: Good stuff, Elizabeth. Appreciate it. Thank you.

COHEN: Thank you.

HARRIS: See you next hour.

And also next hour, we will talk live with two senators about the health care reform debate and the battle over the public option. Maybe we can also ask this question of the senators as well: How much of a family's income should actually go to health insurance on a percentage basis?

We will talk to Senator Thomas Carper of Delaware and Republican Senator Orrin Hatch of Utah beginning at 12:30 p.m. Eastern time. You know, it seems like everyone wants to know your opinion these days about health care, the kind of coffee you drink, whether you have an iPhone or a BlackBerry. But one opinion poll has the Secret Service investigating. We're back in a moment.

(COMMERCIAL BREAK)

HARRIS: So, you know, a poll on Facebook asked if President Obama should be killed. Are you familiar with this story? Facebook has removed the poll, which was created by a third party, but that's not the end of it.

Our Josh Levs is here to tell us all about it. What have you learned on this, Josh?

JOSH LEVS, CNN CORRESPONDENT: It's so horrifying, Tony, the fact that anyone would even do this. Let me just show it to you, first of all. This was a screen grab, which means it had been on the Internet earlier...

HARRIS: Yes, yes.

LEVS: ... and some Web sites captured an image of it. This is from Political Carnival, which is a blog that was the first to point this out, apparently. Here you go, "Should Obama be killed? Yes, maybe, if he cuts my health care, no."

HARRIS: Oh, boy.

LEVS: Now, again, the way this works, I want everyone to understand. We write about it here at CNN.com. Facebook, there are lots of third parties out there, private groups out there, that create applications that allow anyone to create something and then stick it on Facebook. So, this was not directly from Facebook.

Facebook put out this statement. Let's go to it so you can see what they said. They said, "This application that allows you to post polls was immediately suspended while the inappropriate content could be removed by the developer, and until such times at developer institutes better procedures to monitor their user-generated content."

So, what they're basically saying there, Tony, is this developer with this application needs to be more careful. I spoke with the developer. This is his Twitter page right here, Jesse Farmer. And he wrote this. You know, he says on his Twitter page, let's take a look. He said he's spoken with the Secret Service.

He also says, "Thousands of polls are created per day. I rely on automated systems and user reports to filter." And, Tony, he tells me he agrees, that needs new systems so that he's alerted about something like this much faster.

HARRIS: OK. What does the law say about something like this?

LEVS: Yes, we can tie it up with this. I'll show you. I actually found this from Cornell University. Over here, the U.S. Code, it talks about threats against the president.

I spoke with our Jeffrey Toobin, who is, of course, the best constitutional law expert around. And what he says is, they have to do an investigation now to determine, did this count as a threat, or does it not count as a threat? Either way, Secret Service is looking into this, and this guy I mentioned, Jesse Farmer, the man whose application was used by someone out there to create this poll, he knows who it was, and he is speaking with the Secret Service, so you can see they're going to take some steps from here -- Tony.

HARRIS: OK. Josh, appreciate it. Thank you.

LEVS: You got it.

HARRIS: I don't think I have to remind you of this, but I'll do it anyway. Here at CNN, as you know, we are absolutely flat-out dedicated to keep you informed no matter where you are. And as of today, there is an app for that. Yes!

And now you have the world, our world, our world, in your pocket with our new iPhone application. Here's the iPhone. And, see, I use a different device, so I'm not as savvy on this as I need to be. But you know what? Given what we're doing today, Abbi Tatton, maybe it's time for a bit of a switch here.

There's Abbi. She's our Internet correspondent. And if you would, Abbi, walk us through this new application that is available starting today for your iPhone.

ABBI TATTON, CNN INTERNET CORRESPONDENT: Tony, to do that, I have a slightly bigger version which is going to give you a little bit of a different experience, but it's really going to show you how this application is different.

One of the things that really sets CNN's news app apart from the other news apps out there is the citizen journalism feature. We recognize that you want to use your iPhone to get information from us, to get news updates from us. But we also recognize that this is an incredible news-gathering tool, so we have set up this application so iReport is built into it.

HARRIS: Wow.

TATTON: It's a way so people can, as they are out and about, if they see news happening, can submit information to us -- images, stories, videos -- as it happens. We can vet it and put it on the air.

HARRIS: Sure.

TATTON: These are all people that have done this already. I know you've put so many iReports on your show. You're a big fan of the feature.

HARRIS: Right, right.

TATTON: A lot of what we're getting in in the last couple of days is the devastating typhoon that's hit the Philippines...

HARRIS: The Philippines, yes.

TATTON: ... and Vietnam in the last 24 hours. And these are just some of the many stories that we've had coming in from people who are experiencing flooding, who were trying to get through...

HARRIS: Got you.

TATTON: ... this terrible event. These are all the iReports you can see in this feature on the application.

HARRIS: Wow.

TATTON: On top of that essentially is the way you can submit information yourself. You're out and about, you see news happen. You can take a photo, take a video right there, submit it to us right away. We're always going through these as they come in, so it just got a lot easier to submit this information to us. You know, CNN's in a lot of places...

HARRIS: Oh, yes. oh, yes.

TATTON: ... but we cannot be everywhere all the time, as you know. And so, we're really -- in many news stories, we're looking for this extra information, the extra picture.

HARRIS: Well, it just helps us tell the story better. It really does. I mean, that's why we love it on this program, and we're using it throughout the network, citizen journalism and all the iReports.

It just helps us tell the story better. It puts us on the ground in many places where -- as you mentioned, we are everywhere. But, you know, we may not be at the moment it's happening. And if you're there, and you can snap a picture, and you can use this app, OK, great.

Here's the other piece. Walk us through now the ways that you can get the news from us.

TATTON: You can get your -- you can get breaking news. You can get live streaming video. You can get the headlines. I'm taking you now to the other section, the CNN section. This is where you're getting your information.

Just right here, we're in the "Top Stories" section. You can scroll through, choose what you want to read. You can follow a certain topic if it's of interest to you, and you're going to get updates about that topic as we bring them to you. You'll be able to get that right here. That's through this feature called myCNN.

I've got this set up right here to Washington, D.C. That's where I am.

HARRIS: Nice. TATTON: It's got the weather, it's got the traffic, it's got the affiliate stories, all the localized news that you need. But like I said, on top of that, you can add a topic that you really want to keep up to date on, and you'll keep getting the information from us, from our affiliates through that. Got to mention...

HARRIS: That's awesome. Yes.

TATTON: ... you get it at the App Store, $1.99 for all of that -- Tony.

HARRIS: All right. Will you be back next hour to explain this again?

TATTON: I will be bringing you how the live video streaming feature works.

HARRIS: Is that next hour?

TATTON: It's something else -- next hour -- something else that you're not going to get elsewhere on any other app.

HARRIS: This idea on traffic in D.C., what, every time you head out, what, a parking lot, that's D.C. traffic. Come on. All right, Abbi, see...

TATTON: It's a little bit better than that.

HARRIS: Yes, right. All right, Abbi, see you next hour. Thank you.

TATTON: Thank you.

HARRIS: Here's a bit of a preview that we're working on for the next hour of CNN NEWSROOM. Health care reform and the debate over a public option. As the issue plays out today, we will talk with to two senators, Democrat Thomas Carper of Delaware and Republican Orrin Hatch of Utah.

The president weighs whether to send more troops to Afghanistan. We'll look at the challenges they'll face if he signs the order.

We're back in a moment.

(COMMERCIAL BREAK)

HARRIS: Tufts University is getting tough on dorm room sex. According to "The Tufts Daily," the student newspaper, the university has banned any sex act in a dorm room while one's roommate is present.

The new ban stems from a rise in complaints about what the students call -- I can't even say this -- sexiling (ph)?

Is that it? OK.

You want to hear more about it? Well, just go to our blog, CNN.com/Tony, and you can see today's blog bonus.