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Dow Hits 10,000 Again; Troop Levels in Afghanistan; Cigarettes New Wording

Aired October 15, 2009 - 10:00   ET

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

HEIDI COLLINS, CNN ANCHOR: As you might imagine we are watching Wall Street this morning. Just one day after the Dow Jones once again topped the 10,000 mark. It's the first time though in more than a year we've seen it hit that level. Boy, oh, boy. Those are some big numbers, Susan Lisovicz on Wall Street right now watching today's action.

Now just 30 minutes since that opening bell. Also our Christine Romans in New York to talk about what the 10,000 mark really means to you and me this time around. Let's take a quick look at that big board right now.

As you can see it's resting at just barely above the 10,000 mark. 10,004. Want to get over to Susan Lisovicz now at the stock exchange. Hi there, Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: Hi, Heidi. Well, you know, 10,000 is a big fat number.

COLLINS: Yes.

LISOVICZ: Technically, it doesn't mean anything. It's just like say somebody turning 40. Not that neither of us would know, Heidi.

COLLINS: Never. Doesn't mean a darn thing.

LISOVICZ: It doesn't mean a darn thing but you look at it, you reflect where and where we come, what have we done, where are we going. That's the kind of thing Dow 10,000 is. You look at Dow 10,000 from March, Heidi, 3,500 points. The Dow, the markets were at multiyear lows this year, earlier this year. So it's a tremendous rally.

Sure, on the other hand, of course, we first reached this level 10 years ago. We've had extraordinary things that have happened since then. The dotcom bust. One recession, then another, a much worse, one that is called the great recession. Ultimately, the stock market is not some abstract thing, Heidi.

Because millions of us are investors and we invest often times when we see opportunity. Things are getting better. Stocks are getting cheap. That's what's happened. But it also has this two-fold effect because when people start talking about, hey, did you see the market Dow 10,000?

COLLINS: Exactly. LISOVICZ: It starts to influence their sentiment and perhaps behavior. Maybe they'll spend a little bit more. That's part of the recovery process. This rally absolutely indicative that things are getting better.

COLLINS: All right. Very good point. Susan Lisovicz, sure do appreciate that. I know that you'll be right there at your post as you're watching those numbers all day long.

LISOVICZ: With the hat.

COLLINS: Yes, with the hat. The 10,000 hat. Will bring that out again a little later on. Thank you.

I want to take a moment to get inside those numbers. What is the Dow hitting 10,000 actually mean to you and me? Christine Romans joining us now live from New York with more on this. So, Christine, the economy is still certainly has a way to go to get back on its feet. You can't deny the rally but when we look at unemployment, when we look at foreclosure and several other factors here, we need to know where we stand.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: And stocks are only one of the three big pillars of your money, right? It's your house, it's your stocks, and it's also your job and we have rising unemployment. We'll probably see 10 percent unemployment. This is a real problem. I mean, you can say look at this great rally on Wall Street but if you don't have a job and you're not investing in 401(k) right now, it really doesn't matter much to you, right?

The housing market is bad. You have been talking this morning, Heidi, about those very troubling foreclosure numbers showing, you know, a real record three months of foreclosure activity. Remarkable, more than 900,000 properties falling into some level of the foreclosure stage and weak consumer spending. You know, you can look at the stock market and say great, it's above 10,000 but I'm still down 29 percent on my stocks - stock portion of my retirement over the last couple of years.

Things I think that matter more very immediate term to your money - if you're a senior citizen, for example, you're not going to that cost of living increase in your social security benefits next year. The president would like to give a $250 check to people. That's something that's a little more immediate for many seniors. If your are on the verge of losing your home, that's more immediate than looking at the 10,000 number.

So I think putting it all in perspective is incredibly important. Because there's this real big feeling, Heidi, that Main street is really, really suffering while wall Street seems to have turned a corner here and there's a big disconnect happening.

COLLINS: Yes. I think people are still saving their dollars big-time on this. All right. Christine Romans, thanks so much. We do have those new unemployment numbers coming out this morning. First-time unemployment benefit claims are at 514,000 for the week. That is 10,000 less than last week. Here's the bigger tally though. 5.99 million people are continuing to claim benefits. It is the first time that number has dropped below six million since March.

Social Security checks as you just heard from Christine won't change next year. The government announcing a short time ago there will be no cost of living increase for the first time since 1975. That's when the automatic adjustment first went into place. The news was not unexpected. The White House already announced they'll be sending out $250 stimulus checks to offset the lack of an increase.

Overseas, more than three dozen people are dead after a series of militant attacks in Pakistan. The victims include both police and civilians. Authorities say militants launched nearly simultaneous assault in the eastern city of Lahore, targeting law enforcement sites. About a dozen militants were also killed in the fighting.

Those strikes came as a suicide bomber targeted a police station in northwestern Pakistan. Pakistan's president says the bloodshed will not stop the government from its mission to eliminate extremists.

Five meetings down, one more to go before President Obama decides on a war strategy in Afghanistan. The president spent three hours yesterday with his national security team deciding on where to take the eight-year-old war. Another session planned for next week. The president's top general is asking for 40,000 more troops on the ground. Others in the administration are calling for a different strategy.

And there are questions this morning about the number of troops that are even available to deploy to Afghanistan. We want to get more now from our Pentagon correspondent, Barbara Starr.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): As the White House continues to talk about the way ahead in Afghanistan, the president signaling one of his concerns.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: We just want to make sure that at all times not only the young men and women who are already there but also any additional young men and women both military and civilian who might be working there are served by a policy that's sustainable and effective.

STARR: One potential problem, the Army, which will provide the bulk of any additional forces, may be hard pressed to come up with the numbers. Consider this. The Army has 44 combat brigades. About 175,000 troops. But 19 brigades are already deployed. Another dozen already committed for deployment. That leaves about a dozen brigades that could be sent to the war zone about 48,000 troops.

But if all those troops go to Afghanistan, the Army could be stretched too thin to deal with other threats and troops potentially face not getting the promised year at home in between combat deployments.

GEOFF MORRELL, PENTAGON PRESS SECRETARY: I see no indication at this point that that would have to be adjusted but I think we always reserve the right to make adjustments if that's what national security dictates.

STARR: But the head of the Army sees less time at home with families as a real possibility.

GEN. GEORGE CASEY, CHIEF OF STAFF, U.S. ARMY: You could do the math as well as I can. More troops makes it harder to get - more troops impact. No question about that.

STARR (on camera): And what about the Marine Corps? The commandant of the Corps has calculated he can only send another 8,000 Marines to Afghanistan and first he has to get his Marines out of Iraq to even be able to do that.

Barbara Starr, CNN, the Pentagon.

(END VIDEOTAPE)

COLLINS: The battle over health care reform rages on. Senate Democratic and White House negotiators sat down for the first time yesterday. The meeting comes after Tuesday's Senate Finance Committee voted to approve an overhaul plan. But the Senate bill is getting criticism from both sides. Congressional Republicans say it will raise taxes while doing little to bring down rising insurance costs.

And from the democratic base, more than two dozen labor unions ran full page ads in "The Washington Post" yesterday ripping the bill for excluding a government run public option.

President Obama is on his way back to New Orleans. He's been there five times since Hurricane Katrina hit but this is his first visit as president. White House aides say he wants to see the progress and the struggles of residents firsthand. He is planning to stop at the MLK Charter School in the Lower Ninth Ward before holding a town hall meeting.

After New Orleans, the president heads to a fund-raiser in San Francisco. Protesters planned to be there outside the hotel. Anti- war activists and supporters of health care reform say they plan to be there to demonstrate. The president has no other events planned in San Francisco.

A Tennessee father with custody rights arrested in Japan for trying to take back his kids. Today, he is released from jail. We'll take a look at what's next.

ROB MARCIANO, AMS METEOROLOGIST: I'm Rob Marciano in the CNN severe weather center. The storm in California is moving east and taking a lot of energy with it. Nor'easter is brewing and in the meantime there's a tornado warning out for northeastern Louisiana. We break it down in just a few minutes. We'll be right back.

(COMMERCIAL BREAK)

COLLINS: Now to these new developments in the international custody battle that we've been following. A Tennessee father is out of jail now in Japan with abduction charges against him dropped. The dad who has custody rights in the United States of his children was accused of snatching his kids from his ex-wife.

CNN's Kyung Lah is joining us now live from Tokyo with more. So Kyung, as a reminder this all happened in Japan as he allegedly tried to take the children back. Why did the authorities decide to release him after keeping him for so many days?

KYUNG LAH, CNN CORRESPONDENT: Well, from what we heard from the prosecutor's office in part is because of a promise that Christopher Savoie made to the prosecutors saying that he would not attempt to take his own two children back to the United States in this manner. If you read the tea leaves here, the implication is that he's not going to have contact with his own two children.

As you say, Heidi, this all did begin as a bitter international custody dispute. And it started when his ex-wife, Noriko, a Japanese citizen, took those two children, abducted them out of the United States, eight-year-old Isaac and six-year-old Rebecca. She brought them to her home country here in Japan.

And then a U.S. court gave sole custody to the father, Christopher Savoie. But because Japan does not recognize parental abduction as a crime and also does not recognize a U.S. court order, Christopher Savoie came here. He tried to take the children back but because his Japanese ex-wife is recognized as the sole guardian here, he was stopped and charged with child kidnapping and he sat in a Japanese jail for almost three weeks that is until tonight.

We did get some reaction from the U.S. consulate. The consulate spokesperson said they are pleased that this is the result at least of this criminal case but said in regards to any bigger issue, "the U.S. government together with the Japanese government will try find a long- term solution to the joint custody and parenting issues." So no immediate relief for Christopher Savoie but as far as this international custody dispute but as far as the criminal case, Heidi, that appears to at least be resolved, at least for today.

COLLINS: So very quickly, Kyung, we may not know the answer to this just yet, but if he agreed, or at least the agreement was in order to get out of jail that he wouldn't have anything to do with his kids, what can he do next?

LAH: What he has to do next. Well, according to the prosecutor's office he has somebody fight for him, by proxy. That means he's got to have an attorney here or a friend here to try to figure out what to do with the custody battle. But it is a very, very tough thing. It is very rare to have a Japanese national who has custody, physical possession of two children who may have citizenship elsewhere and then have a foreign parent, that foreign parent - it is very difficult for that parent to win custody back once the children are here in Japan with the Japanese parent. COLLINS: It's quite a story. We'll continue to follow it obviously. Kyung Lah, thanks so much.

Back in Tennessee, Christopher Savoie's current wife, Amy, had been waiting to hear about his release, of course, she spoke with CNN's AMERICAN MORNING.

(BEGIN VIDEO CLIP)

AMY SAVOIE, WIFE OF CHRISTOPHER SAVOIE: I found out this morning. At around 3:00 in the morning I received a phone call from him. He said that he was out and I was just really happy to hear his voice.

The elation lasted, you know, a few minutes, and now we're back to square one where there is no closure, you know, we don't have Isaac and Rebecca.

(END VIDEO CLIP)

COLLINS: CNN has attempted to get an interview with Savoie's ex- wife, but so far she has not returned our calls.

In Florida now, an Orlando woman says she's afraid the state will take custody of her 13-year-old son because of his weight. Josia Lewis weighs 400 pounds and he has health problems. When he missed a few medical appointments, the doctor's office contacted the Department of Children and Families saying his condition is life threatening.

(BEGIN VIDEO CLIP)

BRENDA LEWIS, MOTHER: Because of his weight, he has gained diabetes and he has high blood pressure.

These people are going come to my house and take my child and sign me over as unfit.

(END VIDEO CLIP)

COLLINS: State officials say they have provided support to the family but added the family has to cooperate with doctors or face the option of having Josia removed from the home.

Right now in New York state, health care workers who have contact with patients are required to get the H1N1 vaccine. New York so far is the only state to make this mandatory. We want to know what you think on this. Should the H1N1 vaccine be mandatory for health care workers? Go to my blog. Check out the story, CNN.com/heidi and post your thoughts there.

One farmer says it's not the end of the world yet, but the storms have to stop. You're looking at what's left of a cotton field in north Alabama. The ground saturated after nearly 12 inches of rain in only the past-month and a half and that's after a record of drought.

Rob Marciano standing by to talk a little bit about this. Yes, it's interesting what happens after you've had a drought and then you have a massive amount of rain come in. It's not always easy.

MARCIANO: Yes, there's been a lot of crops that have suffered this year because of weather, not only cotton, ironically the pumpkin crop. There's been a shortage of that because of the wet summer and the crush out there in Napa with all the rain they're getting certainly didn't help. Everything has come out of California, Heidi. And we've got one area of energy to the north, one to the south and one that's developing out east and these three will come together to really develop our first nor'easter of the season.

But in the meantime, first things first. The most severe aspect of this storm is down to the south. We got a severe thunderstorm watch that's in effect for the next - well, until 1:00 local time. But more immediately, we've got a tornado warning that's in effect for the next half an hour and that's for Moorehouse County and with that particular cell it's kind of separated from the main line and that thing may have a tornado. No confirmed reports of that on the ground. But certainly that line is moving through could have winds that gust 50 to 60 miles an hour and enough to do damage.

All right. Here's your rainfall that's beginning to move off towards the east. And well, we're just hoping we don't see things like what we saw out west. This is pictures from Yakima County, Washington, where there was a land and mudslide there. This is route 410. State highway 410. And that created some problems there. So they are drying out somewhat. Most of the drying is across parts of California but they're drying out somewhat and that river is certainly overflowing.

All right. This is a picture of WPXI, well, Pittsburgh, not looking all that good right now. You'll continue to be in the muck, I think, for the next two days and notably if you go east of Pittsburgh there could very well be some significant snowfall.

As a matter of fact, let's look at this map. You're not seeing things here. Winter storm warning posted for northern parts of Pennsylvania. Four to 12 inches of snow possible there, beginning later on today and tonight. Mostly at the higher elevation but nonetheless, that's a pretty doozy of a storm. We'll also see some coastal flooding due to winds with this, Heidi.

So folks who live in the metropolitan area along the i-95 corridor will see gusty winds and in some cases enough wind or enough snow to take some power lines with trees and branches coming down. So we'll watch the storm here.

COLLINS: Yes, definitely. What about the snow in the Rockies? Didn't I see video earlier of ski lifts and things?

MARCIANO: There was some snow in the Sierras at the highest elevations (INAUDIBLE) some snow. But for the most part it was a rain event out in California and they didn't see a whole lot of damage from it. So it was a good rain event because they're in a severe drought. That storm certainly could have been a lot worse.

COLLINS: OK. Yes. Because I know there are a lot of people here who were worried about the grapes in Napa.

MARCIANO: Everybody is.

COLLINS: OK. Rob, thanks so much.

MARCIANO: See you, Heidi.

COLLINS: A man going home from a New York deli. Police say he was first attacked verbally with anti-gay slurs and then this, attacked physically with punches and kicks.

(COMMERCIAL BREAK)

COLLINS: To our top stories now. New surveillance video to show you this morning of a brutal beating. Police say a man was targeted because he's gay. The man was walking home from a deli in New York when two other men approached him. Police say the two hurled anti-gay slurs at the man and then punched and kicked him to the ground. According to New York One television, the victim suffered two collapsed lungs, a lacerated spleen, broken ribs and a broken jaw and is now in a medically-induced coma. The two suspects have been arrested.

It's trial day number two for two former Wall Street executives. Ralph Cioffi and Matthew Tannin. They were hedge fund managers for Bear Stearns. They are accused of misleading investors about the grim subprime mortgage climate in 2007. In his opening statement yesterday, Cioffi's attorney said the men were honest victims of forces beyond their control. Both men have pleaded not guilty.

Three hours and counting until the great California shakeout. More than six million people are registered to take part of what's being billed as one of the largest earthquake drills in the world. And it comes two days before the 20th anniversary of the Loma Prieta earthquake. Dozens of people died and many on the Bay Bridge which collapsed during that 6.9 magnitude quake.

New labels on cigarettes, but are smokers being duped?

(COMMERCIAL BREAK)

COLLINS: What's in a name? Cigarette makers are rolling out new branding for smokes, calling them things like blue and silver. The titles are designed to comply with a pending new federal ban on terms like light and mild. But are tobacco companies just blowing smoke? Here's our Jason Carroll.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN CORRESPONDENT (voice-over): Light, ultralight, low tar. Soon you won't find them on cigarettes anymore. Federal regulators banned the use of those terms saying cigarette companies were selling smokers on the idea one type of cigarette might be healthier.

The American Cancer Society says light cigarettes are just as harmful as regular cigarettes. Now cigarette companies are rolling out updated branding with names like blue and silver. But is it the same old smoke and mirrors? Some researchers say yes.

DAVID HAMMOND, UNIVERSITY OF WATERLLO, CANADA: The new descriptors which will be allowed under the new legislation are having the same misleading deceptive effect as the old ones that will be banned.

CARROLL: Canadian researchers did tests showing people the new wording on similar packaging. In one sample, 83 percent rated silver cigarettes as delivering less tar than the brand labeled full flavor.

HAMMOND: If we put the word silver in the pack, if we put the word white, if we put the work smooth, they were just as likely to think that that brand is less harmful.

CARROLL: We did our own unscientific experiment and showed people two packs of Pall Malls. One red and the other blue and asked which one, if any, they thought was healthier?

UNIDENTIFIED MALE: I can see blue being the lighter one of the two.

UNIDENTIFIED FEMALE: Blue is like water instead of red is like fire.

UNIDENTIFIED MALE: Red is more severe. Like code red is more severe than - I don't know. It doesn't make any sense.

CARROLL: It makes sense to marketing experts when you consider before the new legislation passed Pall Mall blues were labeled Pall Mall lights.

MARIAN SALZMAN, PRESIDENT, EURO RSCG PUBLIC RELATIONS: Color is a fabulous way to keep sending the message home. Fabulous. Wonderful. I want it now. It's going to satiate a need I have. So I think it's a fabulous messaging and really lousy for society.

CARROLL: Researchers from the Canadian study say cigarette companies should be banned from using certain words and colors to which the RJ Reynolds Tobacco Company, make of Pall Mall cigarettes told CNN "this is really a common sense issue. There are hundreds of brands and styles of cigarettes on the market. Consumers need a way to distinguish what brand and style they want to purchase."

(END VIDEOTAPE)

COLLINS: R.J. Reynolds also told CNN if the new packaging is designed to adhere to the new law. The law passed back in June mandates all tobacco companies to be in compliance by next June but the tobacco industry is taking the matter to court in hopes of blocking that ban all-together.

As you know, we are watching the Dow this morning as it jumps around that 10,000 mark. It's not there anymore. But it was fun while it lasted. Where will it stop today and how is the banking industry now driving those new gains?

(COMMERCIAL BREAK)

ANNOUNCER: Live in the CNN NEWSROOM, Heidi Collins.

COLLINS: This week, you look at how the nation's biggest financial companies are faring. Yesterday, strong earnings from JPMorgan Chase propelled the Dow above the 10,000 mark. Today, we hear from Citigroup and Goldman Sachs. Susan Lisovicz on the floor of the New York Stock Exchange with details.

These reports are pretty good, too, right? But we're down below that 10,000 mark that we love so well. Thanks for the hat, too, which I now can't reach. That hat that says 10,000 on it.

SUSAN LISOVICZ, CNN CORRESPONDENT: Yes, exactly. I've got it here. It's at the ready, Heidi. I already got an e-mail from a makeup artist saying, "Fix your hair."

COLLINS: Really?

LISOVICZ: She doesn't know about the magic of this hat. It's the economy. We're doing our best, Heidi.

So, we're hearing from big banks. Goldman Sachs and Citigroup; the headlines are good. The problem, if you will, when you have a rally like what we've seen since March, and the problem is that when you get the sense that things are getting better, is that the bar is set higher. So, Goldman Sachs, Citigroup, the headlines are good. Dig a little deeper.

Problem with Citigroup, it has a lot of customers not repaying their loans. Eight billion dollars in loan losses in one three-month period. That's a problem. Goldman Sachs made a lot of money. Three billion dollars in one three-month stretch. But its investment banking division, which is a key unit, saw its business tumble.

So, you have seen both of the stocks down, and you see the market give back a little bit of what we gained yesterday. That's the nature of earnings season, and as we like to say, the market doesn't only go in one direction, although we would like it to get back to 14,000.

COLLINS: Yes. We sure would. But you can't really have a meaningful recovery, at least not one with any sustainability, if the banking sector doesn't turn around.

LISOVICZ: So true. So true. Unless you happen to know someone with a really fat mattress stuffed with a lot of cash. Whether you need the mortgage for your house or whether you're an entrepreneur or a big corporation, you need the banking sector to be operating at a healthy level, and that's a problem. What we're seeing is still very tight credit, and we see problems with loan losses.

JPMorgan reported yesterday -- it's one of the sturdiest banks, Heidi -- it boosted loan losses by $2 billion. That's the environment we're still in. It's a recovery. It's a slow recovery. COLLINS: Yes. No question about it. And in the meantime, as we hover below 10,000, I'll keep the hat above my head instead of actually putting it on.

LISOVICZ: I'm very impressed with the fact that you kept it on longer than me.

COLLINS: For what? Look now. All right. We'll keep watching the numbers obviously early in the trading day about an hour in. Susan Lisovicz, thanks so much.

LISOVICZ: My pleasure.

COLLINS: The worst three months of all time. This is what an online marketer that tracks home foreclosure numbers says about the third quarter. RealtyTrac says more than 937,000 homeowners received foreclosure notices. That means one of every 136 homes in the U.S. are in foreclosure. Nevada is the hardest-hit state with one out of every two dozen homes in foreclosure.

Tax dodger deadline. Today is the last day for an amnesty program aimed at ferreting out undeclared foreign accounts. The IRS says more than 7,500 U.S. taxpayers have already come forward. Those accounts range from $10,000 to $100 million. Those who have been evading taxes likely won't face criminal prosecution but could be penalized up to 20 percent of the amount in those accounts.

President Obama on his way to New Orleans. It is his first trip as president. The president will start the trip in the Lower Ninth Ward. He's scheduled to visit the only school rebuilt in that area, and after that, President Obama hosts a town hall meeting at the University of New Orleans. You can see that event live here on CNN at 2:15 Eastern.

Then it is wheels up for the West Coast. The president is attending a private fund raiser in San Francisco tonight.

It's no secret. The economy of New Orleans was in a free fall after Hurricane Katrina, but is it coming back? Stephanie Elam is in the CNNmoney.com newsroom right now.

So, Stephanie, good morning to you. Are things getting easier in the Big Easy?

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Well, Heidi, it's four years since Hurricane Katrina rolled through and battered New Orleans, and the city is still struggling. Job growth is lagging behind other Gulf Coast communities, and a recent study finds New Orleans won't add enough jobs next year to even reach its 1980 employment levels.

The study's author says the main problem is uncertainty. He says companies are afraid to build operations in New Orleans because the rebuilt levees are untested at this point. So, for many businesses, it's just not worth the risk of another Katrina to take your business there and have it demolished, Heidi. COLLINS: Yes. Any bright spots in New Orleans economy? There has to be something that's going well.

ELAM: Yes. For one thing it's tourism. That's coming back for New Orleans. It's increased every year since Katrina. I added to it. I went to New Orleans in July for a good time. In an average pre- Katrina year, the city welcomed 8.5 million visitors. Last year, the number hit 7.6 million. So, it's getting closer.

But the convention business is still lagging behind. The year before Katrina, attendance at the New Orleans Convention Center was more than 1.2 million. Next year, as of right now, attendance is expected to be just 750,000, so obviously not back at the levels it once was before Katrina.

COLLINS: Certainly not. All of the construction projects that have been going on there. They must be creating jobs.

ELAM: Yes. And they are. You would imagine there would be a lot after that much devastation. You have to rebuild. Ten billion dollars worth of construction projects are popping up. New Orleans economy right now and creating jobs.

The problem is, at the same time, other jobs are disappearing, particularly in manufacturing. Case in point, the Lockheed Martin plant in New Orleans that makes external fuel tanks for the space shuttle currently employees 1,500 workers, but with the shuttle program winding down, next year there will likely only be 400 to 600 jobs at the facility.

So, until more new business pick up the slack and come back to New Orleans or take their place in New Orleans, job growth is expected to remain very weak, Heidi. And even though you walk around the streets it does looks like it is back on its feet, it definitely still feels a lot of pain after Katrina, Heidi.

COLLINS: No question. All right. Stephanie Elam, thank you so much.

Some are not particularly happy with the president's travel plans. Waveland, Mississippi's mayor says he's greatly disappointed the president isn't stopping in his state to view their post-Katrina recovery. The White House says the president is committed to helping Mississippi.

She's been called "America's mom." Strangers stop her for hugs in the airport, and now Florence Henderson has a new mission. Helping seniors get tech savvy. She'll tell us all about it in a moment.

(COMMERCIAL BREAK)

COLLINS: Checking our other top stories now. Two of Bernard Madoff's investors are suing the U.S. Securities and Exchange Commission. They lost nearly $2.5 million in Madoff's multibillion dollar Ponzi scheme. They blame the agency for failing to protect their money. An SEC spokesperson said the agency believes, quote, "there's no merit to the complaint" and will contest it.

Rush Limbaugh's flirtation with NFL ownership over for now. SEP Worldwide, that's the group behind the effort to buy the St. Louis Rams, dropped Limbaugh as a limited partner. The head of the group says the conservative radio host's involvement became a distraction.

The FAA wants to levy millions of dollars in fines against two of the nation's largest airlines for a safety violation. The agency has proposed a $5.4 million fine against US Airways for allegedly operating eight planes in violation of safety standards. And a $3.8 million fine against United Airlines involving one aircraft. Both airlines have now issued statements. US Airways blames its merging with American West for the maintenance operations. United said it self-reported the incident and has since taken steps to meet safety standards.

All of the latest technology that helps you stay in touch with family, right? Well, only for people who know how to use it. And for some who did not grow up with computers, that can be quite a challenge. Our Josh Levs is here to tell us about a new solution from a woman who's been called "America's mom." Hey there, Josh.

JOSH LEVS, CNN CORRESPONDENT: Heidi, it's no secret. I'm so excited to do this interview. I'm so psyched about this. This is it right here, by the way. This is FlohClub.com. We'll be telling you all about it because she is here! Mrs. Brady. Florence Henderson joining us today.

Hello there, Florence. Are you with us?

FLORENCE HENDERSON, ACTRESS AND FOUNDER, FLOHCLUB.COM: Yes. I'm there. Hi.

LEVS: Thank you for talking to us. Let me ask about this. It's very interesting what you're doing. You're helping people learn how to use this kind of technology. So, talk to me about this. What made you even think of this?

HENDERSON: It's called the Floh Club, F-L-O-H, after my name, because I was terrified of computers, Josh. I didn't grow up with them. And I had four kids that were always saying, "Oh, Mom, please get connected." I would say, "No, I don't have time." But I was really scared.

And so, a few months ago I decided that if I felt that way, there must be a lot of older adults that feel the same way or maybe even some younger ones.

And so, it's a telephone-based technology support system. I started it because I couldn't do anything, and now within a few months I am now sending e-mails, I'm videoconferencing. I'm taking photos off my camera and actually putting them on the computer. Facebook, it is so exciting. I mean, I'm thrilled.

LEVS: And I want to emphasize to people, this isn't something where you're a spokeswoman that came along. This is partly your baby; this is partly your idea. You helped create this. What kinds of calls are you getting? What have people been calling and saying they need help with?

HENDERSON: Things like as simple as learning how to send an e- mail. We have all North American-based technical experts standing by. Eighteen hours a day. Seven days a week. They are all very patient and very caring, and they will access your computer remotely, and they will talk you through any problem you may be having. They will teach you how to use your computer.

LEVS: Let's zoom in on the board quickly behind me. I want everyone to see the Web page right here. And we'll link to it at the blog. This is it here. You talk about the plans and services, ranging from $25 to up to $250 for an entire year. You talk about the kinds of needs that you can help people with. While we're looking at the board, I can show everyone over here, you are up on Facebook. See, just like we're talking about. You have grandkids, right? So, you stay in touch with your grandkids as well.

HENDERSON: You know what, Josh? That's one of the most exciting things for me is to be able to videoconference because I have a son and his wife and two children that live in St. Louis. A daughter in Florida. And they have two children.

And now I can actually see them. I have a new granddaughter who is just a year old. I can watch her grow, and I can talk to them. To me, that's the most exciting thing. So, I'm encouraging older adults to really stay connected and use your brain.

LEVS: All right. Well, quickly, I got to talk to you about the Brady Brunch. Because it's the 40th anniversary. Forty years -- I can't believe -- 40 years after it was created. We're talking about maintaining this kind of iconic position in society.

Talk to me quickly. We see sitcom stars come and go. But you, 45 years after the show technically ended, you have stayed out there as an icon. What's your secret? What did you do that no one else figured out?

HENDERSON: You know what, Josh? I think it's because I love what I do. I'm passionate about what I do. I always kind of felt that my career was my vocation. I love staying on top of things. That's why I would get so frustrated. That's why I started the Floh Club.

Now I'm cybermom. I think I genuinely love to communicate. And I love people. I'm so thrilled to be on CNN. I cannot tell you.

LEVS: Well, it's great to have you here. You're an old friend of CNN. And I want to tell you something, talking about people using technology. Our anchor, Heidi Collins, her father has a blog that I have right here.

COLLINS: Hi, Florence!

LEVS: Hi, Heidi! LEVS: He's over 70, right, Heidi?

COLLINS: Right.

LEVS: He took a whole blog of Europe.

COLLINS: He's an oldie but a goody. Yes. He's way savvy. Check it out.

HENDERSON: I think that's so great. Well, tell him to check me out on Facebook.

COLLINS: There you go. He can friend you or whatever. Yes, this is the blog they set up. He and my mom were traveling in Europe. Boy, did we have a wealth of information about that trip. At every stop and every meal and every sightseeing adventure.

And it is all about the grandkids. The video chats, the blogging, e-mail, all of it...

LEVS: They're so cute. Look at that.

COLLINS: They are about the grandkids. They don't care about the children anymore. They just want to hear about the grandkids. This is how they're doing it. It's great.

HENDERSON: It's a great way to stay connected. Absolutely.

LEVS: Before we lose you, I got to tell you, when I said I was going to talk to you today, every person I talked to said I have to get the truth about you and Greg...

COLLINS: Oh, take me out of this shot. I don't want to be in this shot!

LEVS: ... I said you write about this on your blog. But she writes about this on her blog. You wrote about this. You say -- just give everyone the real story.

HENDERSON: The real story is that he always had a crush on me...

(LAUGHTER)

HENDERSON: ... and he asked me to go on a date with him. And so I went. And he only had a driver's permit. and his brother had to bring him to my hotel, and then he could drive my car, you know, he had a permit. But it was so sweet and so innocent. He's still a very dear friend.

LEVS: That's sweet. All right, well, I tell you something. I told people in advance we would do this interview. Let's zoom in quickly to Twitter. I have a question here. It might stump you a bit. "Which of her six children would Mrs. Brady leave off her friends and family plan" if she a cell phone today? You got an answer for us on that?

HENDERSON: Which one would I leave off?

LEVS: If you could only put five names, which of the Brady kids would not make the list?

COLLINS: You can put three names. "Marcia, Marcia, Marcia."

HENDERSON: Thank you so much. You got me off the hook. You saved me. Thanks.

LEVS: Thank you so much. Oh, listen, let's show everyone the graphic. Because I posted a link to your blog, to your new business -- let's go to that. It's at CNN.com/josh. I've also posted it on Facebook. And I'm sending it out by Twitter right now.

HENDERSON: Thank you!

LEVS: Florence Henderson, so good to talk to you. Thank you so much.

HENDERSON: Thank you, Josh. You're a doll. See you soon.

LEVS: Aww. Mrs. Brady called me a doll. Wow. Heidi?

COLLINS: Oh, my. We're never going to hear the end of it. All right. Thanks, guys. Thanks to Florence Henderson, as well.

Giving flu shots is part of a nurse's job, but is receiving the shot also part of it? A nurse says no. And she's gone to court about it.

(COMMERCIAL BREAK)

COLLINS: Get flu shots or get fired. A New York nurse has gone to court over the state's policy of requiring flu vaccines for health care workers.

(BEGIN VIDEO CLIP)

SUE FIELD, REGISTERED NURSE: I have an issue with the government mandating me to get these vaccines and telling me that if I don't comply, then I don't have a job.

(END VIDEO CLIP)

COLLINS: New York is actually the only state forcing health care workers to get vaccinated. Officials say patients need to feel safe in hospitals. A judge has put off a decision in the case for at least another week.

So, we are talking about this story, as you would imagine, on our blog today. We have gotten quite a few responses. We asked whether you think the H1N1 vaccine or the seasonal flu vaccine should actually be mandatory for health care workers. Here's what some of you said.

First from Denise: "Yes, I think as a patient, I think I should be able to expect my health care worker to be vaccinated, just as I should expect him or her to wash hands and abide by other safe practices."

Also from Justin: "Once again, the government is trying to control the individual. Keep in mind, if New York wins this, it will set a precedent that the government can do with our bodies whatever they feel is necessary."

And Tim says, "I thought the code was 'first, do no harm.' By not getting the vaccine, they are creating a hazard that could do a lot of harm.

And finally from Jay. "It does seem intrusive, and why just health care workers? What about grade school teachers and day care providers? How about police? And prison guards?"

Lots of great responses. We sure do appreciate the participation. Once again, CNN.com/heidi for our blog.

Now, I want to get this information out to you just as it comes into the CNN NEWROOM. Supreme Court Justice Ruth Bader Ginsburg was hospitalized overnight. Ginsburg was taken from a plane after boarding. She apparently had an adverse reaction to a sleeping pill combined with cold medication she was taking. The justice was evaluated at the hospital and found to be in stable health. She was released this morning. It's the second time Ginsburg has been hospitalized within the last month.

Over to Rob Marciano. A busy guy in the Severe Weather Center because it seems like there are storms popping up all over the place, Rob.

(WEATHER REPORT)

COLLINS: Okay. I was waiting for snow pictures from the Sierras. Did we get to see those?

ROB MARCIANO, AMS METEOROLOGIST: They're not as, you know...

COLLINS: They're not exciting?

MARCIANO: .. not the impact you would imagine. It was wet snow up there. It blew (INAUDIBLE) on the way up to Tahoe. The big story was rain and wind across California. They will open up sometime soon. Right now, the Colorado Rockies have an upper hand on the snow. They'll get their fair share. Don't you worry, Sierra, snow fans.

COLLINS: All right! Good. Very good. Rob, thank you.

MARCIANO: All right. See you.

COLLINS: University students attacked. Now they face their attackers in court. Some emotional comments up next.

(COMMERCIAL BREAK)

COLLINS: In Georgia, three suspects have pleaded guilty in the robbery, kidnapping and shooting of university students in Atlanta. Tom Regan of our Atlanta affiliate station WSB has the emotional courtroom drama.

(BEGIN VIDEOTAPE)

PATRICK WHALEY, ATTACK VICTIM: You never really know the impact of your life.

TOM REGAN, WSB-TV CORRESPONDENT (voice-over): Tech student Patrick Whaley was at a tearful loss for words as he thanked everyone who supported him and helped save his life.

P. WHALEY: I'm just so glad to be able to see that impact.

REGAN: But it was the end of the road for the three young teenagers who sparked a wave of terror last May. Robbing and shooting Georgia State student Karsten Sing and Whaley. Back-to-back crimes that left the students badly wounded and traumatized.

D.J. WHALEY, VICTIM'S MOTHER: You pulled the trigger in my son's face, and it didn't go off because the safety was on. He grimaced in disbelief, released the safety, and pointed the gun at my son for second time.

REGAN: Patrick Whaley's mother spoke in anger and pain as she recounted hearing that her son had been shot in the chest of a parking lot of his apartment garage near the Tech campus on May 4th. The bullet came within an inch of piercing his heart.

D.J. WHALEY: Demoralized, traumatized and robbed and ultimately shot my son. At a pointblank range for no reason. They already had his belongings.

(END VIDEOTAPE)

COLLINS: That was WSB's Tom Regan reporting. One of the teenage suspects was sentenced to 30 years in prison, while two others received 25-year sentences each.

I'm Heidi Collins.

CNN NEWSROOM continues now with Tony Harris.