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Runaway Balloon Saga; Clinton Discusses Afghanistan; New Hampshire State Workers Get the Axe

Aired October 16, 2009 - 12:00   ET

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

TONY HARRIS, CNN ANCHOR: Time for your top-of-the-hour reset.

I'm Tony Harris in the CNN NEWSROOM.

It is 10:00 a.m. in Colorado, where authorities may have new questions about a runaway balloon and the boy who wasn't on board.

It is noon in Washington, where Secretary of State Hillary Clinton sits down exclusively with CNN to talk Afghanistan War strategy.

It is 9:00 a.m. in Los Angeles, where I'll let my hair down with actress Nia Long. Her new movie with Chris Rock is "Good Hair," whatever that is.

Let's get started here.

Authorities may have more questions for the Colorado family involved in that bizarre runaway balloon story. The homemade saucer- shaped device lifted off from their Fort Collins home yesterday.

Six-year-old Falcon Heene was thought to be inside. It turns out he was at home the whole time hiding in the garage. His comment on CNN's "LARRY KING LIVE" last night is raising eyebrows about the entire ordeal.

(BEGIN VIDEO CLIP)

FALCON HEENE, BOY THOUGHT TO BE IN BALLOON: I said that we did this for a show.

WOLF BLITZER, CNN ANCHOR, "SITUATION ROOM": I heard what he said, but I'm sure not -- it wasn't really clear. What was his reasoning, why -- he heard you screaming, "Falcon! Falcon!" and I'm sure he heard his mom screaming, "Falcon! Falcon!" But why didn't he come out of the garage at that point?

RICHARD HEENE, FALCON'S FATHER: Well, you know, whenever he -- whenever we tell him things like, you know, it's a bad thing to do, he does go and hide.

(END VIDEO CLIP)

HARRIS: CNN's Sandra Endo is live in the Heenes' hometown of Fort Collins, Colorado.

Sandra, good to see you.

The sheriff's office, is this true, is thinking of re- interviewing the family?

SANDRA ENDO, CNN CORRESPONDENT: That's right, Tony, because all of the speculation surrounding the incident that happened yesterday, as to whether or not it was a hoax or what exactly happened.

And I'm standing in front of the Heene family home right now, and I can see two of the little boys answering the door when a lot of the media are knocking to see if the family's home and if they're talking. And right behind me is the garage where little Falcon, the 6-year-old, was hiding out. And he was saying he was playing with toys, hiding in a box, even taking a nap while this whole search for him was going on.

(BEGIN VIDEOTAPE)

ENDO (voice-over): This new video shows how it all started and captivated the world. Many feared 6-year-old Falcon Heene was on a wild helium balloon ride, but as it turned out, he was actually safe at home the whole time, hiding in a box in his garage attic because his dad yelled at him. The boy said he heard people calling his name, but didn't come out.

R. HEENE: Why didn't you come out?

F. HEENE: You (ph) said that we did this for the show.

ENDO: Skeptics now wonder if this was all a publicity stunt, but dad says his son was just confused.

R. HEENE: I ended up walking to the garage, opening up the garage door, and Falcon's climbing in the joist, showing the media. Somebody had asked him if he would show them how he got up for some TV show. So, he told me that that's what he was referring to when we were talking about it.

ENDO: Local authorities say while bizarre, they treated this like any other missing persons report, and did not believe this was a hoax.

SHERIFF JIM ALDERDEN, LARIMER COUNTY, COLORADO: We've seen no indications that this was anything more than what looked like a tragedy that was averted.

ENDO: A family relieved their mylar helium balloon didn't take away their son.

R. HEENE: We went through so many emotions yesterday, that it's something I just don't want to experience ever again.

(END VIDEOTAPE)

ENDO: Yes, an emotional roller-coaster for so many of us were watching in anticipation of what would happen, when that balloon touched down to the ground yesterday as well, Tony. And back here in Colorado, local officials say they are not charging the family with anything right now. And they're still tallying up the cost in terms of the whole rescue effort itself -- Tony.

HARRIS: OK. Sandra Endo for us.

Sandra, appreciate it. Thank you.

And checking the wire now and the day's other big stories.

Taliban militants blamed for another brazen attack in Pakistan. Suicide bombers killing 13 people at police headquarters in Peshawar, the main city in Pakistan's volatile northwest. Authorities say most of the victims were civilians. This is the latest in a string of terrorist attacks in Pakistan that have killed more than 150 people.

Four more U.S. troops killed in Afghanistan. They were hit by a roadside bomb yesterday in the southern part of the country, where fighting has raged. The military says two died instantly. The other two dying later of their wounds.

The deaths of two people inside an Arizona sweat lodge now being investigated as possible homicides. Investigators are looking at the way the sweat lodge was built, the fact that people had gotten sick there before, and medical care on site. Authorities now say a combination of circumstances led to the deaths last week of Kirby Brown and James Shore.

(BEGIN VIDEO CLIP)

SHERIFF STEVE WAUGH, YAVAPAI COUNTY, ARIZONA: Because of information we have obtained from interviews from the participants in the most recent spiritual warrior retreat, and from other past participants in them, we have elevated this investigation from an accidental death investigation to a homicide investigation.

(END VIDEO CLIP)

HARRIS: The retreat near Sedona is owned by self-help expert James Arthur Ray.

Also in the wires, if you're concerned about getting the H1N1 flu virus, you need to hear this. The FDA says you should avoid buying flu medication over the Internet. The warning comes after the agency analyzed flu products it bought online. It says the drugs may be impure, contaminated, or have too little or too much of the ingredient to battle the virus.

Speaking of H1N1, going on right now, this is a live picture we're going to show you -- oh, we don't have it -- from the Centers for Disease Control and Prevention here in Atlanta. Health officials are giving an update on the H1N1 virus. Our folks are listening in, and we'll tell you what comes out of that briefing as soon as we get additional information.

Now more on one of our top stories.

The secretary of state sits down exclusively with CNN.

Foreign Affairs Correspondent Jill Dougherty did the interview a short time ago, and she joins me live from the State Department.

Jill, good to see you.

Secretary Clinton is just back from Europe. What's on her mind?

JILL DOUGHERTY, CNN FOREIGN AFFAIRS CORRESPONDENT: Well, you know, what was on my mind was Afghanistan, and that's what I wanted to hear from the secretary, and that's what we talked a lot about. And I think if there is a headline from this, what she is saying is, there may be a run-off, as we all know, an election run-off, that Hamid Karzai, the current president, is likely to win, she said. And essentially what she's saying is this administration is pretty much resigned to the fact that he is the guy that they are going to have to deal with.

Now, he is the man who has a lot of allegations about corruption and fraud during this election, but what she is saying is, over the past eight years, the U.S. and the international community did not set expectations for Karzai, but that is going to change.

Here's what she said...

(BEGIN VIDEO CLIP)

HILLARY CLINTON, SECRETARY OF STATE: I think, unfortunately, over the last eight years, there wasn't the kind of expectation that should have been set for what the United States and the international community expected to be delivered. But we're going to change that.

(END VIDEO CLIP)

DOUGHERTY: So, how are they going to change it? Well, one is they're going to demand more from Hamid Karzai himself. And the other thing the secretary is saying is they're going to establish better relations and connections with other power centers in Afghanistan. That could be regional leaders, other regional -- power centers throughout the country.

And then, finally, you know, one thing, Tony, has been, would the president wait for the results of that run-off before he decides how many troops he would send? And the secretary essentially is saying it's his timetable. He's going to make up his decision, not based on that run-off.

HARRIS: Yes.

And Jill, what is Secretary Clinton's view -- boy, she's been really holding her cards close to the vest on this -- on the White House deliberations over troop numbers and how they're proceeding?

DOUGHERTY: She has. That was very interesting, too, because what she was saying essentially is, ,in those meetings with the president, he is asking a lot of questions. They are making kind of reports to the president on various facts. But that, apparently, she has not made up her final mind about what she would recommend to the president, but there will come a point -- and that's coming very soon -- where she and the others will be asked, what is their recommendation? Then the president will have to take that in, but make up his own mind.

HARRIS: All right, our foreign affairs correspondent, Jill Dougherty, for us from the State Department.

Jill, appreciate it. Thank you.

And you can see more of Jill's interview with Secretary Clinton in the 6:00 hour, 6:00 p.m. Eastern Time hour of "THE SITUATION ROOM."

Today we're looking at the disconnect between Main Street and Wall Street. Why are so many on Wall Street making so much money while so many on Main Street are barely getting by?

(COMMERCIAL BREAK)

HARRIS: Got to tell you, as the Dow soars, more Americans are facing layoffs. In New Hampshire, many of the state's workers finding out this week they no longer have a job. It looks like a real clear case of Main Street versus Wall Street.

Here's Heather Hamel from CNN affiliate WMUR.

(BEGIN VIDEOTAPE)

KENDALL WATSON, NEW HAMPSHIRE HHS: It's a very somber day. A lot of people have gotten slips already. I can't say a lot, but enough.

HEATHER HAMEL, WMUR-TV CORRESPONDENT (voice-over): Employees said Thursday was D-Day for Health and Human Services. As people walked in and out of the office on Hazen (ph) Drive, people like Kendall Watson were obviously worried.

WATSON: I'm still sitting on pins and needles. I have no idea what's going to happen. I've just kind of conceded that until I know different, I don't have a job.

HAMEL: By midday, the layoff notifications were still going on. The commissioner said 150 people will be let go or reassigned, but the official breakdown isn't yet available. A different story at the Department of Corrections, whereby afternoon, the numbers were already out -- 37 employees laid off.

JEFF LYONS, NEW HAMPSHIRE DEPTARTMENT OF CORRECTIONS: Of the 37 people who have been laid off, 14 of them are corrections officers and the balance of them are non-uniformed or civilian staff.

HAMEL: Lyons says that there were 400 corrections officers with the department and the 14 who were laid off are from various facilities. Approximately 20 other people were either demoted or reassigned.

LYONS: We're going to be reworking schedules and taking the necessary steps to, you know, maintain the safety of the institution utilizing the resources that we have.

HAMEL: Laid-off employees at both Corrections and HHS have another two weeks to work before officially leaving their post, a reality those still in the dark have trouble dealing with.

WATSON: It's impacted a lot of different departments. You know, these are people that we work with, that help the programs continue to function to serve the public. And they're gone.

(END VIDEOTAPE)

HARRIS: Boy.

And on Wall Street, two of the country's biggest banks announced gold-plated profits this week. One was Goldman Sachs. More than $3 billion for the third quarter. One quarter.

The company says it is on track for its most profitable year ever and is preparing for record bonuses.

"Fortune" magazine's Andy Serwer talked with Goldman's CEO.

(BEGIN VIDEO CLIP)

LLOYD BLANKFEIN, CEO, GOLDMAN SACHS: Our business and our market shares are doing pretty well, but what it says about the world is you have to understand that our business correlates with growth. From whatever place we are in the cycle, from wherever we are, even if it's from a low place because the world had shrunk, once it starts to turn we get very, very involved in those processes.

We benefit from it, but we contribute to growth. Because when you think about activities that we do, is we help people raise capital, companies who need capital raise the capital, and, of course, we talk to and intermediate to the big pools of capital who are looking for places to invest. And very often we use our own capital to fund those investments, which serves as a validation for other people to come rushing into those places. And so, as the market starts to turn around, our business starts to grow.

(END VIDEO CLIP)

HARRIS: But are these big financial companies really investing? It's a question.

Ooh, we've got guests to help us with that.

While Goldman churned out the eye-popping profits, 768,000 Americans lost their jobs in the third quarter and foreclosures kept up a record pace. Clearly, Wall Street and Main Street lead different places these days.

Let's talk about the disconnect with Business Correspondent Stephanie Elam and Ryan Mack, president of Optimum Capital Management.

Good to see you, Ryan. It's been a while. Let me start with you.

So, the Dow is over 10,000. Unemployment is nearly at 10 percent. If Wall Street is performing so much better, why is Main Street still in reverse?

RYAN MACK, PRESIDENT, OPTIMUM CAPITAL MANAGEMENT: Well, I mean, essentially, if I can just respond to what the CEO of Goldman Sachs just said...

HARRIS: Yes. Yes. Would you please? Yes.

MACK: ... analyzing the numbers of Goldman Sachs' profits from the third quarter of last year to the third quarter of this year, they are actually down by 31 percent in their investment banking. Their core business was down by 31 percent.

Their true growth came from almost quadruple the numbers in terms of from the third quarter of this year to the third quarter of this year in trading and derivatives trading. So, they're back to doing the same things over and over again.

They're not investing. They're not the next Warren Buffetts out there investing -- finding the next value within this economy.

What they're doing, they have a lot of unmitigated risk that they're taking that's still unchecked, still unbalanced by the government. And I have to say, they're not necessarily the problem, they're just the symptom. The problem is that there's greed and irrational exuberance, and unmitigated risk-taking is still yet to have any rules to try to make sure that they're going to try to rein in so that they can try to check this greed that's been taken on by Wall Street.

HARRIS: OK. OK.

Ryan, and then Stephanie.

Ryan, do you get any new jobs out of derivatives trading? I don't know what it is, but do you get any new jobs out of derivatives trading?

(LAUGHTER)

MACK: I'm from Detroit. I want to see if there's any celebration in Detroit for these record profits that they're making right now in my hometown. As you drive down Eight Mile, there's no celebration, there's no new job creation, there's no value creation.

They're essentially stealing money out of -- created a brilliant way to steal capital out of the system and have no downside checking on the risk that they're taking. Heads, they win. Tails, the taxpayer becomes the guarantor of their company. And that's essentially what we have. This is not capitalism. This is essentially us being the guarantor of these companies making sure that they can stay in business.

HARRIS: Stephanie, what do you want to say here?

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: No doubt about it that there's still a lot of loopholes, there's still a lot of broken parts on Wall Street. No doubt about it. But what we are seeing here, that -- what I take away from looking at these numbers is that they're still feeling a lot of pain. I know the numbers are large and larger for a lot of people who look at this.

HARRIS: Who is feeling a lot of pain?

ELAM: The banks are still feeling pain. It's not like everything is rosy for a lot of them.

You see these numbers -- take a look of bank of America, since they reported today. I know Goldman Sachs is one issue, but take a look at Bank of America.

Their revenues missed the mark. Their net income missed the mark. They've been selling off assets. They've been merging in these units and having difficulty with that.

So, I would say what I take away from when you look at these numbers is the fact that the consumer pain is being felt by the banks as well. You look at the credit issues, people are still having a hard time paying their credit card bills on time. That is affecting a lot of the banks. But it shows where the consumer is, and since the consumers drives two-thirds of this economy, that's why I pay attention to that number.

HARRIS: But they're finding a way, Stephanie, clearly to make it work as workers are being asked to take pay cuts, pay higher premiums for their health care insurance, work longer hours. The financial firms are finding a way.

ELAM: Yes. I hear you. You're right about that, but you can't go off on the banks for every issue in world and say you should be taking some of the profits that you've earned to make it so that these people can live better and keep their homes.

There has to be a bit of just looking at the banks for what they're responsible for. And also, at the same time, you've got to look at the people who perhaps bought more house than they could afford at the same time and look at that. There's two sides to this. You can't just put all of it on the banks.

HARRIS: Got you. But aren't you at least a bit troubled by what Ryan was mentioning earlier, that you've got these banks, in many cases, doing the same kinds of things that brought the system close to collapse in the first place?

ELAM: Of course. Yes. If you're going to look at something that is so complicated as derivatives, you can't just break it down into a nice, easy explanation.

HARRIS: Right.

ELAM: Yes, that is a problem. It's something that has to be regulated, it's something that has to be addressed. And I would imagine that it will be addressed.

The problem is, when do you do that? Last year, think about last year, when everything was falling apart. That was, like, the least of the concern at that time.

I'm assuming -- and I could be wrong here, but I'm assuming this will be one of the things that will be addressed moving forward. Right now it has not been at the forefront of people's minds.

HARRIS: And Ryan, we're also getting killed by fees by these banks.

MACK: Yes. Well, definitely.

I mean, at the end of the day, you know, Wells Fargo just came out and said they're going to be raising rates on November 30th, of all days, where Barney Frank, the head of the House Financial Services Committee, came out and said they wanted to -- they had new legislation that was supposed to take effect in February, but they wanted to move it back to take into effect for December 1st. So, now Wells Fargo comes out and says, you know what? We're going to raise fees by three percent across the board so that we won't be able to -- we'll be able to capitalize on gouging those same individuals, these same taxpayers that helped us get through these hard times.

Well, now, guess what? In response to that, as a good reward for that, we're going to come after and raise your fees on you.

So, this is not -- I mean, look, I'm a free capitalism guy. I'm a capitalism guy, free market. I'm all for it. But this is not capitalism. This is not free market.

Heads, they win. Tails, we have to bail them out.

We have to figure out. We have to call our representatives. They respond to letters. We have the lobbyists working for them. We have to make sure we're just as aggressive in making sure that our voice is heard.

Call your senator. Call your congressman. Let them know that we need regulation and reform to make sure that this is not happening again to us, because there's nothing that's changed so far.

HARRIS: And Stephanie, let me give you the last word on this.

ELAM: Well, when I hear this, it's true. I do think people have to find a voice for themselves. And I know there's a lot of people who have been calling the banks saying, work with me here, and not getting any word back. And that is a travesty, that's wrong, that's a huge problem. I'm sitting here looking at Bank of America's earnings and looking through the number of people that they say they've helped by working with them on their mortgage. Just the fact that they pull out those numbers shows you that they understand they're getting a lot of heat on this and they have to do better.

So, hopefully -- hopefully, they will start doing more on it. But I agree with Ryan. If people are really angry about it, they've got to get a collective voice out there to make some change.

HARRIS: Stephanie, good to see you. Thanks for your time. I know they're beating you up a little bit today.

Ryan, as always, great to see you. Thanks for your time.

MACK: Thank you.

HARRIS: All right.

So, the Dow's up, the dollar's down. Can't find a job. Houses in foreclosure.

Forget Wall Street. What about your personal bottom line?

We've got something to help you out with your dollar dilemma.

Fredricka Whittled with a special hour of CNN NEWSROOM Saturday, 4:00 p.m. Eastern. Thinking about making changes to your 401(k), not sure what to do about spending?

With the holidays coming up, the Dolans will be here, Ken and Daria. Wow. Good people. And we will take your questions and comments for a full hour. That's 4:00 p.m. Eastern, tomorrow.

And checking our top stories now.

A suicide bomber kills 13 people at a Pakistani police station in the volatile northwest frontier. The bombing is the latest in a series of recent attacks that have left some 150 people dead.

South Carolina officials say a 16-year-old student has died after being shot by a police officer. School officials say the student was shot after he stabbed the officer. It happened at Forest High School in Conway, near Myrtle Beach.

And in Colorado, was it all a publicity stunt? The father of a 6-year-old boy thought to be on board a runaway helium balloon angrily rejecting that suggestion today.

We will get another check of your top stories in 20 minutes.

There is a big storm off the Pacific Coast and snow in the Northeast. Our Chad Myers is keeping an eye on all of that for us. We'll talk to Chad in just a moment.

You're in the CNN NEWSROOM. (COMMERCIAL BREAK)

(WEATHER REPORT)

HARRIS: Can you believe there is a bank executive who's not getting paid this year? He's the exception in an industry where big money is the rule.

Poppy Harlow will break it all down for us.

(COMMERCIAL BREAK)

HARRIS: All right. Once again, we love to remind you that if you're looking for the latest financial news and analysis of the day's financial happenings, just go to cnnmoney.com. Our team there does an absolutely outstanding job. Once again, cnnmoney.com.

Let's swing you now to the New York Stock Exchange for a look at the big board. Exactly three hours into the trading day, as you can see. It's been a down day virtually from the opening bell. Dow stocks down 102 points. Three hours into the trading day. And the Nasdaq, last check, was down 23 points. We will follow these numbers throughout the day with Susan Lisovicz right here in the CNN NEWSROOM.

Bank of America CEO Ken Lewis won't get any pay this year, but he's an exception to the rule. This week, some financial firms are reporting billion dollar profits and that could mean fat paychecks. Yes, bonuses on Wall Street. Cnnmoney.com's Poppy Harlow is in New York.

And, Poppy, what are you hearing about all of this?

POPPY HARLOW, CNNMONEY.COM: Well, you know, first of all, that real headline that came out last night, Tony, and that people are talking about on Wall Street today is the recommendation by the pay czar that Ken Lewis, the CEO of Bank of America, has agreed to pay back all of his earnings from this year. He won't receive any compensation for 2009. He's paying back more than $1 million.

This comes as Bank of America reported a $2.2 billion quarterly loss this morning. But when you look at its competitors, Morgan Stanley, Goldman Sachs, JP Morgan Chase, they've all paid back TARP money. Bank of America still is operating under TARP money. So their compensation at those banks isn't subject to restriction.

What we've had this week, Tony, is some rare access to the men at the helms of these big, big banks. And we asked them, straight up, what's the deal with compensation? What's fair? What's not? Here's what the CEO of Morgan Stanley told me this week.

(BEGIN VIDEO CLIP)

JOHN MACK, CEO, MORGAN STANLEY: Well, look, the mistakes we made were in the way we rewarded people. I think to many of our . . .

HARLOW: Short term? MACK: Yes, too many of our companies in this business reward people on a very short-term basis. And I think the one thing we can do is make sure that our compensation is focused on a much long-term basis versus short term.

(END VIDEO CLIP)

HARLOW: That's a great point because bets that may have looked very profitable one year ago, Tony, we know now they weren't. So compensation is more long term. You'll see the long-term effect of moves (ph) the different folks on Wall Street have made.

We also spoke to the CEO of Goldman Sachs this morning at a "Fortune" event, Lloyd Blankfein, asking him, what do you do about compensation over the long haul? What needs to change? His response.

(BEGIN VIDEO CLIP)

LLOYD BLANKFEIN, CEO, GOLDMAN SACHS: We're going to have to get the compensation system more aligned. And, of course, whatever system we had in place, which I thought was pretty good, we're going to tighten up. So, if you ask me, would I -- if I'm going to change it, would I have changed it earlier had I had this kind of wisdom that I have now? Of course I would have. So the answer is, there's room for -- there's obviously room for changes.

But, again, I think this focus on compensation -- look, the incentive system matters. At the end of the day, the failure in this -- the failure here, the key failure, not the only one, but if I had to focus on a key failure, it was the failure of risk management.

(END VIDEO CLIP)

HARLOW: That is a very good point. A lack of risk management leading to a lot of the crisis that we've watched unfold over the last year and a half. As for the compensation picture, Tony, what you can expect over the next few weeks, pay czar Kenneth Feinberg making those compensation recommendations. But remember, he can only do that for banks that still have TARP money. If they've paid it back, nothing he can do.

More on this, more from those CEOs, it's all right here on CNN Money.

Tony.

HARRIS: That's good stuff. Good perspective on this. Poppy, appreciate it. Have a good weekend. Thank you.

HARLOW: You're welcome. You too.

HARRIS: From health care reform to Afghanistan and the battered economy. Our John King tells us he's got the right man on his "STATE OF THE UNION" program Sunday to talk about all these issues.

(BEGIN VIDEO CLIP) JOHN KING, CNN CORRESPONDENT: We're going to have the White House chief of staff, Rahm Emanuel, with us at the top of the show live in studio. He's a very busy man right now. Deeply involved in those health care negotiations. Deeply involved in the debate over Afghanistan.

And we'll also have the Senate Foreign Relations Committee chairman, John Kerry, the Democratic senator from Massachusetts. He is in Afghanistan. He's there right now to get a sense, will there be a runoff? He's meeting with the generals to hear them say they need more troops. He is a key voice in Congress. A health care voice too, but also on Afghanistan. Senator Kerry will also join us Sunday on "State of the Union."

(END VIDEO CLIP)

HARRIS: CNN's "STATE OF THE UNION" with John King airs this Sunday morning at 9:00 Eastern.

Hair seems to be the topic of the day for many people.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Hair is just a form of self-expression. A fashion statement.

UNIDENTIFIED FEMALE: I love my short hair.

UNIDENTIFIED FEMALE: Your hair gives you different looks. It gives you different feelings.

UNIDENTIFIED FEMALE: I used to have long hair and now it's short.

UNIDENTIFIED FEMALE: Hair is an accessory.

UNIDENTIFIED FEMALE: It is what it is. It's hair.

UNIDENTIFIED FEMALE: If you like it, then we love it.

UNIDENTIFIED FEMALE: I tell people, you wouldn't wear the same shirt every day, so why should you wear the same hair?

UNIDENTIFIED FEMALE: Everyone wants what they don't have. I would love to have like wild, curly hair. But my hair is not naturally wild and curly.

(END VIDEO CLIP)

HARRIS: You know, I'm going to find out what actress Nia Long -- doggone, Nia Long is on the show today. Boy, this is the way to wrap up a week. What Nia Long has to say.

NINA LONG, ACTRESS: Good morning.

HARRIS: Good morning. We're back in a moment. Got to go before I say something inappropriate. Nia Long's on the program. (COMMERCIAL BREAK)

HARRIS: So, let's get you caught up now on our top stories.

A suicide bomber kills 13 people at a Pakistani police station in the volatile northwest frontier. The bombings is the latest in a series of recent attacks that have left some 150 people dead.

Four more American lives lost in Afghanistan. Military authorities said today the service members died in roadside bombing. Also, two civilians were killed in crossfire during a military operation against militants.

Authorities may have more questions for the Colorado family who said their six-year-old son floated away in their homemade balloon. When it landed in a dirt field yesterday, young Falcon Heene was not inside. Turns out he was at home the whole time hiding. Falcon told "CNN's Larry King Live" last night, "we did it for the show."

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I think hair is important to us as black women, because it is our crown. It frames our face. But I also think that, for many of us, we feel that when people look at us and see our hair, they presume that we are making a political statement of some sort with our hair.

UNIDENTIFIED FEMALE: I think hair is important to all women. But black women, we probably have the most options when it comes to our hair. You know, variety is the spice of life.

SOLANGE KNOWLES, ACTRESS/SINGER: When we grow up, we're trained to put so much emphasis, so much energy, so much time and money on our hair, that's how we're trained up. Our parents instill that in us. Women around us instill it in us. And so naturally, when we get older, it embodies so much for us.

UNIDENTIFIED FEMALE: However we wear it, it's just our expression of who we are.

(END VIDEO CLIP)

HARRIS: All right, it's all good for me. Hair, straight, curly, long, short. To some women, whatever it isn't is what they want it to be. Today we are getting to the root of the issue in our "What Matters" segment as women discuss their love/hate relationship with their hair in the current issue of "Essence" magazine.

And joining me now from Los Angeles is the cover model of that issue, actress Nia Long, who also stars in the new movie "Good Hair."

Nia, good to see you. It's about doggone time.

NIA LONG, ACTRESS: Good morning!

HARRIS: Good morning. Good day. What is -- I know you've been touring the country a little bit, promoting the film and doing some focus groups for folks and meeting with journalists about this.

LONG: Yes.

HARRIS: What is -- what is "good hair"? What does that term mean, particularly for black women?

LONG: I think when you look at it historically, the term "good hair" is a little taboo because is suggests that your hair should be of, you know, mixed heritage or that you should have straighter hair or naturally curly hair. And what I think the film basically says is that all hair is good hair. Healthy hair is good hair. We should focus on our self-esteem rather than what's on our head and kind of focus in on what's on the inside.

HARRIS: Yes, I like that. Wait a minute, your hair is shorter than when I saw it in the movie.

LONG: Yes.

HARRIS: What have you done recently to your hair?

LONG: I just got scissor happy and cut it off. And I'm back to the old Nia Long with short hair.

HARRIS: Hey. Hey. So you've gone through several permutations. You mentioned in the film that you were wearing a weave for a while. You've done a couple of things, but you've cut all of that stuff out of your hair now?

LONG: I cut it. You know, I think, for me, hair is like an accessory. It's a fashion statement. It's a mood. Oh, that's a funny shot. Wow. That was good hair. I loved that hair.

HARRIS: That was good hair? OK.

LONG: I loved that good hair. That was like -- that was wig. That was an easy wig. We just, you know, went ahead and plopped it on and I could just easily go to work. There -- I'm back to that Nia Long.

HARRIS: You're back to that. You know, in the movie -- in the movie "Good Hair," the comedian Paul Mooney -- you know I'm going to go here -- it's a little stinging commentary from Paul Mooney, but it's one of the lines of the movie.

LONG: Right.

HARRIS: He says, "If your hair is relaxed, white people are relaxed. If your hair is nappy, then they're not happy."

LONG: Right.

HARRIS: So the question to all of that is, how much pressure did you feel, over the years, to wear your hair in a way that made it easier for you to fit into the mainstream? LONG: Well, for one thing, the weave and the extensions and the -- and the perming of the hair has more to do with the convenience when being on set.

HARRIS: Ah.

LONG: It wasn't -- I wasn't trying to conform or deny my natural -- natural beauty. It was more about, you know, really just going to work and be able to get in and get out and get on set on time.

HARRIS: Ooh, ooh, that brings me to the next question. To work as a black woman in Hollywood, is having sort of pressed out, relaxed hair, let's just say, manageable hair an advantage?

LONG: I think it is an advantage. I think that, you know, we have a lot to do in a short period of time and we've got to get our jobs done. And, you know, when you are not able to have the proper help on set or someone that isn't familiar with black hair or someone that, you know, doesn't know how to press hair, it's kind -- you kind of have to go to work sort of pre-prepared for the day.

HARRIS: Nia Long, I'm so happy to have you on this program.

LONG: Yes, thank you.

HARRIS: You know, you have had a wonderful career. This is the Nia Long tribute portion of the interview. Years of great work and wonderful films that have made a lot of money. We're talking about "Alfie," right, "Boiler Room," "The Best Man," "Soul Food," "Made in America." You have no idea what's about to happen. "Made in America." That was with Will Smith.

LONG: Yes.

HARRIS: And for a moment we're going to take you back to the films that made you a flat-out superstar in the black community. We're talking about "Friday," right, "Boyz n the Hood," "Love Jones." They write songs about you, Nia Long. We have got a surprise for you to offer a bit of a testimonial. Tyrese Gibson on the beeper line . . .

LONG: No.

HARRIS: Star of the "Transformer" movies. Terrific singer. "Baby Boy." Tyrese, you there?

TYRESE GIBSON, ACTOR/SINGER (via telephone): I'm right here.

LONG: Get out of here.

HARRIS: Doctor -- you're doggone right, that's how we roll in the NEWSROOM with Tony Harris.

Tyrese, do me a favor here. I sent you a note last night telling you that Nia was going to be on the program. I just want you to offer the testimonial from brothers all over the world to Nia Long, would you please? Take it away.

GIBSON: Well, you know, my testimonial on behalf of all the black men in America is, this woman is classy. She's sophisticated. She's articulate. She's beautiful. She has a confidence and an aura about her that makes her stand out when she walks in the room. Even if she's at a dinner table with somebody else, you have -- you're forced to have to look over there and just see hopefully you'll get a sneak peek out of her. You know what I'm saying? like if I could just get her to just look at me right quick while she's at the table with somebody else, like that's who Nia Long is.

On the movie set, she's prepared. Her preparation gain is full throttle. She shows up ready to play. She's -- man. You know, and when she smile at you, all your problems just go away.

HARRIS: Whoo!

GIBSON: You know what -- you know, this is -- you know, this is the last piece of it. You know, Nia, it must be incredible waking up to yourself every morning.

HARRIS: Oh.

LONG: I am -- Tyrese, you're awesome. I am so embarrassed right now. This is like -- my birthday is coming up. That's the best birthday gift ever. Tyrese, I love you, Ty. You do the same thing, baby, when you walk in the room. And thank you for that. I appreciate it.

HARRIS: Anybody got any love for me? Anybody? Anybody got an love for T. Harris?

LONG: Oh, of course.

GIBSON: Oh, yes, we definitely -- we got love for you for making this happen, you know what I'm saying. You make things happen (ph).

LONG: That's right. And your hair is good hair today.

HARRIS: It's the best. It's growing in spots, I wish it didn't.

Nia, good to see you.

LONG: Thank you.

HARRIS: Tyrese, I'll be in contact. Thank you both.

GIBSON: Thanks for the love.

LONG: Have a great one, guys.

HARRIS: Wow. All right. Yes, you, too.

And to read more how women are getting to the root of their own hair issues, pick up the latest "Essence" magazine on newsstands now, or go online to cnn.com/whatmatters. (COMMERCIAL BREAK)

HARRIS: Latinos, a minority population in America, but one that's expected to nearly triple by the year 2050. Next week, CNN takes an in-depth look at how Latinos will likely change this country and how the country has changed them. Part of that special, Soledad O'Brien's compelling story of a Puerto Rican man who is pursuing the American dream and facing significant challenges along the way.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: Repeat after me, logs used as wheels.

CARLOS ROBLES: Logs used as wheels.

SOLEDAD O'BRIEN, CNN CORRESPONDENT (voice-over): Carlos Robles (ph) seems like the typical American, until he opens his mouth.

ROBLES: A horse-drawn chariot.

UNIDENTIFIED FEMALE: Chariot.

ROBLES: Chariot.

O'BRIEN: This 29-year-old is taking English pronunciation classes at Valencia Community College in Orlando. He's hoping to reduce his Spanish accent.

O'BRIEN (on camera): When you came to Orlando, how did you think your English was?

ROBLES: Worse. Really worse.

O'BRIEN: Did you feel -- did you know you couldn't speak English well?

ROBLES: Yes. I also cry in my bed because I can't have a conversation with the people. So it was really bad.

This place, like, two minutes.

O'BRIEN (voice-over): Carlos was born in Puerto Rico, an American territory, whose residents are U.S. citizens. Spanish is the main language.

ROBLES: It's hard to understand the English.

O'BRIEN: In Puerto Rico he was a decorated police officer. Now, he dreams of a job in Florida law enforcement. But, first, he has to pass the sheriff's exam.

ROBLES: I failed the first one. But I don't think it's so hard, the test. I can do it. Really, I can.

O'BRIEN (on camera): Would knowing English better help you on the exam? ROBLES: Yes.

O'BRIEN: Academy requirements, criminal justice chain of command, officer safety and response, community relations, intervention services.

ROBLES: Yes.

O'BRIEN: This looks hard. How many questions is it, over how long?

ROBLES: Two hundred and fifty in four hours. I growing more comfortable to the test now.

O'BRIEN: This time.

ROBLES: A little nervous. But I think I'm ready.

O'BRIEN: When's the test?

ROBLES: Next week.

O'BRIEN: You got a lot of pressure on you. And basically a week to go.

ROBLES: That's right. I have to look forward.

O'BRIEN (voice-over): Adding to that pressure, fatherhood. Carlos met Kayla (ph) a year ago. Now they're engaged and expecting a baby. Carlos Robles is unemployed, uninsured, and still struggling with his English. His future, and now his family's future, is in his hands.

(END VIDEOTAPE)

HARRIS: We are just five days away from "Latino in America," a comprehensive look at how Latinos are changing America. CNN's two- night event takes place Wednesday and Thursday at 9:00 p.m. Eastern. It will also be simulcast in Spanish on CNN en Espanol.

And if you were going to find a job that lasts in this economy, sometimes you're going to have to be willing to work pretty hard.

(COMMERCIAL BREAK)

HARRIS: The Florida Keys may seem like one long string of condos and souvenir shops. But a couple hundred years ago, it was a very different place with clear blue waters and hardworking fisherman. Today's "Americana in Focus: Jobs that Last" segment comes from CNN photojournalist Jerry Simonson.

(BEGIN VIDEOTAPE)

CAPT KARL LESSARD, FISHERMAN: The day starts off beautiful. I see the sun rise every morning. My name's Captain Karl Lessard. I've been a lobster fisherman down here for 38 years in the Florida Keys. My family's been fishing since the 1800s. There's a lot of fourth, fifth, and sixth-generation fishermen that are here in the Keys.

Today we'll be fishing for spiny lobster. We're going to pull 485 traps. I have a very skilled crew. One mate grabs the rope and the buoy, puts it in the winch, pulls it up, pulls it over the clearing station. They have to be measured to see what's legal and what's not.

Got some nice lobster today. Some grandes. Big ones.

If you feel the calling, there's no better way to make a living. You're out here in this spectacular environment, have dolphins coming up, playing in the boat. A lot of hard work. But there's nothing better than a good day fishing.

Lobsters are going from $8 a pound to $3 a pound. We're all basically in survival mode at the present time. But it's still a wonderful way to make a living.

I'm not a good gambler. Well, hell, I'm a fisherman. I'm a professional gambler.

Definitely had a calling for the sea. And it's a very spiritual place for me. I think I'll probably fish until I cash in my hand. Although I'd like it to be a long time from now.

(END VIDEOTAPE)

HARRIS: And that was photo journalist Jerry Simonson reporting. And you can find more information about "Americana in Focus: Jobs that Last" online at cnn.com/americana.

All right, we are pushed forward on a Friday with more CNN NEWSROOM -- where are you -- with Kyra Phillips!