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Pakistan Launches Offensive Against Taliban; New Federal Budget Deficit Numbers Are Released; Government Releasing Stimulus Money Flows on Website; Study Shows Mindfulness Exercises Like Meditation and Yoga Reduce Stress

Aired October 17, 2009 - 14:00   ET

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

FREDRICKA WHITFIELD, CNN ANCHOR: Pakistani soldiers and militants slugging it out, a new offense is happening this hour targeting power. The president's plan to reform health care -- so many details flying around. We are keeping you straight on where it stands right now. And lying to your children, is it right or is it wrong?

You are in the CNN NEWSROOM where the news unfolds live this Saturday, October 17th. I'm Fredricka Whitfield.

Potential trouble in paradise. Happening right now a category four hurricane strengthens off Acapulco, Mexico. Forecasters are predicting a much weaker hurricane, Rick, when the storm hits land days from now, but for the time being out bands of the storm raise the chances for possible flooding of the resort town and the surrounding area.

(WEATHER REPORT)

WHITFIELD: Today also mark a tough anniversary for many people in Californians. Twenty years ago the Lola Preiata earthquake struck the San Francisco Bay Area, killing 63 people. The quake collapsed two sections of the San Francisco-Oakland Bay Bridge, and nearly 4,000 people in all were injured.

Out of that tragedy came stories of heroism and a friendship that lasted 20 years. Coming up at the end of the hour, hear the remarkable story of a firefighter and the woman that he rescued.

Long planned and much promised -- Pakistan today launched an assault on Taliban and Al Qaeda in the south Waziristan tribal region. CNN's Reza Sayah now from Islamabad.

(BEGIN VIDEOTAPE)

REZA SAYAH, CNN INTERNATIONAL CORRESPONDENT: Showdown in Pakistan -- 28,000 troops move into south Waziristan to take on the Taliban on their turf. Soldiers now locking horns with Taliban leader Hakimullah Mehsud and up to 15,000 of the region's most hardened Taliban and Al Qaeda fighters.

PERVEZ HOODBHOY, PAKISTAN DEFENSE ANALYST: At this point, I don't believe that the Pakistani state has a choice. SAYAH: Defense analyst Pervez Hoodbhoy and military officials call south Waziristan "the headquarters of the Taliban and Al Qaeda," a safe haven where they are free to train and plan deadly suicide and guerilla attacks.

HOODBHOY: Waziristan is very important in the assertion of Pakistan's sovereignty. Furthermore, this is where the Taliban have their nerve centers.

SAYAH: Hoodbhoy says the Taliban know the severe and unforgiving terrain here well and will use it to their advantage.

The much anticipated ground offense follow a recent wave of militant attacks in Pakistan that killed more than 150 security personnel and civilians. In several brazen assaults, armed militants humiliated security forces by penetrating the most sensitive police and military compounds.

HOODBHOY: What we have seen is suicide bombings have spread into all our cities. We have seen the extremists become stronger and stronger day after day. And that nerve center lies in Waziristan. We have to go for it now.

SAYAH: With troops moving in, tens of thousands of local residents are packing up and moving out. For weeks they have seen Pakistani jet fighters bomb militant hideouts in preparation for the ground offensive. The U.N. says 80,000 people have already registered for relief aid.

UNIDENTIFIED MALE (via translator): There's war, and we have to take care of our children. That is why we left the area.

SAYAH: Washington will watch the battle closely. The Obama administration says insurgent attacks in Afghanistan are often planned and launched from south Waziristan. They have long pressured Pakistan to get tough on militants here.

Three times the Pakistani army has launched military offensives in south Waziristan. All three times, they failed. The Pakistani army, now with a fourth opportunity, one it can ill afford to lose.

(on camera): The Taliban has vowed to launch more suicide attacks as payback, but the Pakistani military says they won't back down from carrying out the mission.

Reza Sayah, CNN, Islamabad.

(END VIDEOTAPE)

WHITFIELD: The NATO coalition announced the death of three more American troops in Afghanistan. The soldiers were killed by roadside bombs. Two died in an explosion in eastern Afghanistan, and one in the southern of the country.

Twenty eight Americans have been killed this month alone in Afghanistan. And for all of 2009, 250 Americans have died. This year is, by far, the deadliest yet for U.S. forces in Afghanistan.

And $1.4 trillion, that's the federal budget deficit for the fiscal year that just ended, the worst annual economic performance since the end of World War II. Kate Bolduan is at the White House. So Kate, how is all that red ink going to affect the president's plan?

KATE BOLDUAN, CNN CORRESPONDENT: Hey there, Fredricka. It is evidence of the tough challenges ahead for an administration trying to overhaul the health care system as well as trying to show its efforts to turning around the economy are working.

And while this number, $1.4 trillion is more than a 200 percent jump from one year ago, Treasury Secretary Timothy Geithner pointed out that this number is lower than projected earlier this year.

The causes, well, continued increases in unemployment, the economic downturn, and the extraordinary intervention and expensive steps that the government has taken to jumpstart the economy.

But in a joint statement, Treasury Secretary Timothy Geithner and the White House Budget Director Peter Orszag said the deficit "was largely part of the spending and tax policies inherited from the previous administration, exacerbated by a severe recession and financial crisis that were underway as the current administration took office."

But Republicans were quick to react to these numbers as well. Senate Republican Leader Mitch McConnell saying in a statement "Congress simply can't continue acting like a teenager on a spending spree with its parents credit card and no regard to who pays the bill."

So you can see that these new number coming out is easily fueling partisan fires as the debate continues on Capitol Hill.

WHITFIELD: So Kate, one has to wonder how this might be impacting health care reform.

BOLDUAN: Today the president was focused once again on health care reform. He used the weekly Internet and radio address really to focus on highlighting the progress made of late as the debate moves to the congressional committee phase to a wider floor debate.

The president is continuing to try to build momentum around this health care reform effort, and the White House and the administration are pushing to get health care reform passed by the end of the year -- Fredricka?

WHITFIELD: Kate Bolduan at the White House, thank you.

BOLDUAN: Thank you.

WHITFIELD: Let's talk more about this economic stimulus and other money matters. Our Josh Levs is keeping track of where all the money is going.

JOSH LEVS, CNN CORRESPONDENT: Yes.

WHITFIELD: It's a tough job.

(LAUGHTER)

LEVS: Yes, exactly. You have to have lots and lots of tentacles to keep chasing it.

We have brand-new job numbers out and a map to show where they are near you.

WHITFIELD: And I have to ask you this question -- Do you ever tell a little white lie to your son, Ryan?

LEVS: Uh-oh.

WHITFIELD: If you do, do you think it's OK?

LEVS: I'm afraid he might be watching.

WHITFIELD: We asked other people, is it OK to tell little white lies to your son or daughter?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: No, I think you need to be up front with your kids.

UNIDENTIFIED MALE: It all depends on what the situation is.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

WHITFIELD: That was a little rocky, wasn't it?

OK, so it's trillions of dollars being spent to rescue the economy. We are keeping an eye on where the money is going. Our Josh Levs is keeping an eye on that and how many jobs have been created. That explains the rocky music because it's rocky, isn't it?

LEVS: It's a rocky economy. I like that. Nice transition.

(LAUGHTER)

LEVS: I actually get to tell you a government gap in the process that is also rocky. Let's zoom into the board. We keep on eye on recovery.gov. This week they posted this, saying so far what's been reported 30,000 jobs have been created by contractors who got money from the $787 billion stimulus spending.

Take a look at what CNN money points to, a big oops. There had actually been mistakes in the way it was reported first. They had to fix it.

Can you come way in on the graph here? This whole big circle is how much is going to be reported, $500 billion. The amount we've heard about is this teeny little sliver right here, $16 billion.

So what it boils down to is what's been reported so far is a little piece of the pie. So far, we have heard reported 30,000 jobs from the stimulus. We have to hear a lot more.

That's enough of the boring numbers. Check out this cool graph. You can click on any state, no matter where you are. You want to know what's happening in your state? It will pull up information for you.

I'll zoom in. This has a system on recovery.gov where you click on this green box and it opens up all of the contract that have been reported so far about money was given. Boom, click on any one of the green dots, it shows who got the money, where it's being used, and you can click around and get more information.

So this, Fred allows you to find out what's going on in your area, all of it. It's at the address on your screen, recover recovery.gov.

WHITFIELD: That's rather clever, because if you are looking for a job and maybe you're willing to relocate, I bet if look at where the resources are, where the jobs might be, that might help in your job search.

LEVS: A lot of people have been doing that. It's a topic of conversation. How much is it helping with your job search? Some people it really is.

And some people are saying how come one state got so much more and others less? You can read more at CNNmoney.com about how it was decided, sometimes by the transportation department, which roads would get fixed, which buildings, schools, all that piece of the pie fighting going on.

WHITFIELD: And population, yes, whether it's a transit area. That's a great location to check out. Thanks, Josh. And we'll talk more money at 4:00 p.m. eastern, but not just the nation's economy but yours as well.

OK, ice cream, yummy, made the old fashioned way. For Monroe Udell, that is the only way. He's been serving up ice cream for 50 years at Jaxson's Ice Cream Parlor in south Florida.

As part of our "Americana in Focus" series, photojournalist Mike Miller talked to Udell about the success of sticking with tradition.

(BEGIN VIDEOTAPE)

MONROE UDELL, OWNER, JAXSON'S ICE CREAM PARLOUR: My name is Monroe Udell. I'm the owner of Jaxson's, and I am the original owner for 53 years.

I originally started it in 1956. I made the ice cream myself. A double dip ice cream cones was 15 cents. The location is a landmark today. We always serve humungous portions. We came up with the kitchen sink because people called their ice cream in the kitchen sinks, which were actually a punch bowl.

We are not a cookie cutter. And we are renowned through the industry as one of the outstanding ice cream parlors in the country today.

It's still made right here, all the good fruits and nuts. We haven't changed a thing. We still do it the old fashioned way.

We have had down times and good times with the economy.

It's about six weeks since I had my quadruple heart surgery. I'm going to try to be here as long as I can, I hope another 60 years.

(END VIDEOTAPE)

WHITFIELD: Oh, that looks good. That looks like a trip shall be made today.

That was photojournalist Mike Miller reporting. And you can see more from this special CNN series, "Americana in Focus." Jobs at last, next hour right here on CNN, our photojournalist search the country for jobs that have stayed on for so many generations, just passed on from one to the next.

OK, ringing phones, nonstop e-mails -- after a while, it all adds up to job-related stress. We'll show you a technique that may stop the stress before it actually starts.

And new worries about swine flu, this time involving children.

(COMMERCIAL BREAK)

WHITFIELD: All right, a look at the top stories now.

Louisiana Governor Bobby Jindal is calling for the dismissal of the justice of the peace who refused to marry an interracial couple. Jindal says Keith Bardwell clearly broke the law and his license should be revoked.

Bardwell says he is not a racist. He says he refused to issue the marriage license because he was concerned about any children they might have.

No major announcement today from the father of the boy thought to be on board a runaway balloon earlier in the weak. Richard Henne said that he would make the announcement this morning. Instead he left a cardboard box outside his house for reporters to drop off written questions. He says he will answer those questions this evening.

He is denying the incident was a hoax.

And a new worry as swine flu spreads across the U.S. The CDC reports delays in the delivery of the H1N1 vaccine. Widespread outbreaks of illnesses are now reported in 41 states.

Swine flu is hitting children especially hard. At least 43 have died since September, 11 in the last week alone. A doctor with the CDC calls that a "startling number."

Perhaps work has you down, kids getting on your nerves. Listen to this, anxiety at work or at home can cause depression, exhaustion, high blood pressure, even high cholesterol, particularly in women.

So stop, take a breath, and listen to Elizabeth Cohen's "Health for Her" segment.

(BEGIN VIDEOTAPE)

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: For Lillian Waugh, music soothes after a stressful day. But a few years ago, Lillian was so stressed out from her job as a university historian it started to affect your health.

LILLIAN WAUGH, STUDY PARTICIPANT: I was in the middle of chronic back pain I've had for almost a decade.

So when West Virginia University began a study on handle stress in the workplace, Lillian signed up.

According to the lead researcher Kimberley Williams, some of the 103 participants were given written instructions on handling stress at work. Others, such as Lillian, were taught mindfulness exercises, like yoga, breathing techniques, stretches and meditation, all designed to help them cope with too many e-mails, ringing phones, and an occasionally nasty boss.

Mindfulness is a form of meditation that helps people become more aware of their body and feelings at a specific moment.

KIMBERLEY WILLIAMS, RESEARCHER: We taught them to recognize the sources of stress, how stress impacts them, and then what they could do to come out of the vicious cycle of stress reactivity.

COHEN: After three months, researchers found the group that practices mindfulness exercises improved their health.

WILLIAMS: People that went through the mindfulness program had significantly less impacted daily hassles, significantly less psychological distress, and significantly fewer medical symptoms.

COHEN: Lillian continues to practice these methods, and no longer in pain, having control over her attitude makes all the difference in her health and outlook.

For today's "Health for Her," I'm Elizabeth Cohen.

(END VIDEOTAPE)

WHITFIELD: And a final health care bill -- what will it look like and will it include a public option? We'll show you all the possibilities and take a look at the heated battle straight ahead.

(COMMERCIAL BREAK)

(WEATHER REPORT)

WHITFIELD: All right, the health care debate -- yes, it's intensifying in Washington as lawmakers negotiate final reform bills in the House and Senate.

And in his weekly address, President Barack Obama warned health care costs will skyrocket without reform and eventually devastate the economy.

He also accused the health insurance industry of trying to mislead the public with dishonest ads against reform.

Texas Congressman Kevin Brady gave the Republicans' response, saying current reform efforts will give government too much power and drive up costs.

So you need a scorecard these days to keep track of what has happened in this week of health care reform. Good thing we have our Paul Steinhauser keeping tabs from Washington for us.

So what should we be watching for next?

PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: It's going to get a little tough, Fred, because all the action now is behind closed doors. We had that big vote in Senate finance committee last week, but now all the action is behind closed doors.

What's going to happen this week, the Senate Majority Leader Harry Reid is going to bring in the top senators and top members of the White House and they are going to try to take the two bills in the Senate and merge them into one.

The same thing happening in the House of Representatives with Nancy Pelosi, the House Speaker there. She's got three bills. They're all trying to merge them into one bill.

Fred, don't expect any floor votes in the House or Senate until November. And this whole process, we could go deep into December before we maybe get a bill on the present status.

WHITFIELD: Meanwhile, the president is trying to boost his health care reform ideas, he's also trying to help other people win office and perhaps make sure everyone is clear about the White House's message.

We're talking about President Obama as well as Joe Biden. Particularly, they have been in New Jersey and other parts.

STEINHAUSER: Yes. And they are going to be back in New Jersey this week. Monday, Joe Biden will be with Jon Corzine. He's the Democratic governor of New Jersey. He's up for reelection in just two and a half weeks and facing a tough reelection. The president will be there on Wednesday. And the president is also going to go down to Virginia, Fred. That's where there's another Democrat running for governor.

These are the only two states with governor's elections this year. The Democrats control both seats. And so even though these are state elections with state issues, they are seen as the first referendum on the president and how he's doing in the White House. Barack Obama has something on the line even though he's not on the ballot.

WHITFIELD: And maybe that's why we're seeing the president crisis crossing the country so much. He really has dotted just about every state as president.

Last night he was in Texas with President George H. W. Bush as well as the current Secretary of State Mr. Gates. That was an interesting collection of folks, of minds, of the power of Washington, presidents past.

STEINHAUSER: Gates did work for George Herbert Walker Bush 20 years ago when he was president. This was a nice case of bipartisanship down in Texas A & M yesterday.

The former president, George Herbert Walker Bush, he has a foundation that deals with public service, the points of light -- during his presidency, his points of light which included public service.

So a nice taste of bipartisanship. We could use a lot more of that back here in Washington -- Fred?

WHITFIELD: I wonder if there's also some strategy behind that. They were talking volunteerism. Does that spill over into the other agendas, other issues the president wants to push forward but is getting resistance at the present time?

STEINHAUSER: Unfortunately probably not. The president did sign a bill earlier this year to increase public service. It did have some bipartisan support there.

When it comes to health care, as we remember, there was only one Republican senator on the Senate finance committee, Olympia Snowe of Maine, who voted in favor of this bill, not a lot of by partisanship.

But a nice picture there from the points of light event there.

WHITFIELD: It was a nice event to watch and see the body language between them. They seemed like they were best buds, didn't they?

STEINHAUSER: It's amazing how that happens, yes.

(LAUGHTER)

WHITFIELD: All right Paul Steinhauser, thanks so much. STEINHAUSER: Thanks, Fred.

WHITFIELD: Dollar dilemma is the focus in the 4:00 eastern hour. What should you do with your money as the economy struggles to recover? And some say the economy is recovering.

The holidays are drawing near as well. Should you spend more or less? It's a question we should be answering as well as asking.

And of course, you can be part of it. CNN's Josh Levs is here to explain how and why. Already we are hearing from people.

LEVS: Fred, we are. We are getting a bunch of questions coming in. And we have lots of advice on all sorts of topics, from 401(k)s, holiday shopping, as Fred was saying.

This is a question we have at the blog. Let me jump over to Facebook. We have a couple good examples here. "How much should one place in a 401(k) or 403(b)?" We're going to tackle a lot of topics. We'll have with us, Fred, the Dolans who are always a lot of fun and always have a lot of answers.

WHITFIELD: They are so smart. They really are.

LEVS: They are. They have a really good track record with our viewers as well as successful advice.

Let's show everyone how to send your questions. You have Fred's page at CNN.com/Fredricka. You can post on the blog there. There it is. Facebook, I have a page open here.

We have looking at all those things and pulling together all the questions we can. I am looking forward to this hour -- Fred?

LEVS: I am too. We will talk about 401(k)s. People are seeing a bounce in some cases. They resume to what the numbers were earlier in the spring.

And also you mentioned holiday shopping coming up, a lot of pressure on a lot of families who feel like they have to spend, spend, spend. But is that really the right way to go?

And trying to match up the national economic picture to your personal finances, should they be in sync or is there a mixed message going on?

LEVS: And a lot of people are looking at what they are owing in taxes. And people are looking ahead to New Year's resolutions even this early. Are they going to be able to be where they want to be at the beginning of the year?

A lot of people not looking forward to paying second semester for a child's college. There's a lot of big expenses coming up. A lot of people face a lot of additional stress. We want to cut through that with as many answers as we can. WHITFIELD: I love that resolution. Why wait until new years? So many come up with resolutions after spending all that money and are like, where do I begin?

LEVS: Been there.

(LAUGHTER)

WHITFIELD: I know, me too.

All right Josh, thanks so much.

LEVS: Thank you.

WHITFIELD: Developing stories we are watching right here in the NEWSROOM.

Pakistani troops launch a massive offensive against the Taliban. And two ancient enemies kick start thawing relations on the football field, or soccer field.

(COMMERCIAL BREAK)

WHITFIELD: Let's look at the top stories right now.

Tens of thousands of people in Pakistan are fleeing their homes after the military launched a massive offensive against the Taliban today. Pakistani troops have seized control of a home village of a Taliban leader. He's said to be the master mind behind some of Pakistan's deadliest suicide attacks.

And a California company is recalling thousands of pounds of sausage that went to stores without being inspected. Federal officials say the meat was marked under the brand Vatran and Montebella Sausage Company. They sausages were distributed to stores in California in the San Joaquin valley area. So far there are no reports of anyone getting sick, no problems yet.

All right, 28 feet beneath the sea, no kidding, a meeting is being held to draw attention to global warming and rising sea levels. See the divers? No kidding.

The Maldives cabinet met underwater to approve a resolution calling for global cuts in carbon emissions that will be presented at December's U.N. climate summit.

Experts say rising sea levels could submerge the Indian Ocean nation by the end of this century.

One week ago right here on this show, we watched as ancient enemies Turkey and Armenia brokered a deal to normalize ties and reopen border. By midweek, we saw the fruits of this new agreement. Armenia and Turkey are facing off against each other in the game of soccer.

CNN's Ivan Watson reports from Turkey. (BEGIN VIDEOTAPE)

IVAN WATSON, CNN INTERNATIONAL CORRESPONDENT: It was the night of football diplomacy. The Turkish president Abdullah Gul hosting his Armenian counterpart on the first ever visit of an Armenian head of state to Turkey, the exhibition match bringing together two neighbors divided by a century of animosity.

Turkish President Gul says this marks the beginning of a new chapter in Turkish-Armenian relations.

PRESIDENT ABDULLAH GUL, TURKEY: People should contribute and not live with the hostile feelings.

WATSON: President Gul jumpstarted the peace process last year when he accepted an invitation to attend the first round of football diplomacy in Armenia. Then Turkey and Armenia signed a landmark agreement aimed at establishing embassies in each other's countries and reopening a border that's been closed since 1993.

GUL: Our relationship is going to be normalized. Of course it's not easy, but we are moving on in a positive direction.

WATSON: But local Turkish fans were not excited about the visiting team. Some carried the flag of Turkey's ally Azerbaijan, which fought a war against Armenia in the 1990s.

Security was tight amid fears Turkish nationalist might mount a provocation. When it was time for the Armenian national anthem, the Turkish fans booed. Experts warned they are still far from becoming friends.

NIGAR GOKSEL, EUROPEAN STABILITY INITIATIVE: Ultimately, none of the serious problems between these two countries have been solved. We need to caution with optimism. It's going to be a long and bumpy road.

WATSON: This historic round of football diplomacy ended with a 2-0 victory for Turkey and a lukewarm reception for Armenia from the overwhelmingly Turkish crowd.

The two governments are talking, though, and that's a big step forward for these two long-time rivals.

Ivan Watson, CNN, Turkey.

(END VIDEOTAPE)

WHITFIELD: Telling those little white lies to your children. You know you do it. Don't lie. Is it a necessity as a parent or are you simply protecting them from the truth?

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: The only way you can have them understand is tell white lies. Maybe not white lies, but if you go more in-depth of explaining the situation, which they probably won't understand anyway.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

WHITFIELD: Burning questions these days. So we took it to the streets to get answers. Do you lie to your children?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Sometimes, because, I have done it myself. So, I think it's all right.

UNIDENTIFIED FEMALE: No, I don't. I have a six-year-old. I have to tell her the truth. I don't want them to expect something that's not going to happen.

UNIDENTIFIED MALE: Of course I tell little white lies to get things done.

UNIDENTIFIED MALE: I believe now, I don't think that's right, because eventually, they are going to find out.

UNIDENTIFIED FEMALE: I come from a very small family, and I think they tell little white lies, no, it's a lie. Lies are lies. For parents, they should be honest with your kids.

(END VIDEO CLIP)

WHITFIELD: Is a lie is a lie? White lies, lie, it's all the same? Something many parents are guilty of doing, telling those little white lies to their kids.

Psychologist Gail Heyman is one of the researchers who looked at why parents lie and how much. OK, so the consensus is most parents do fib.

GAIL HEYMAN, PROFESSOR, UNIVERSITY OF CALIFORNIA, SAN DIEGO: Yes, the vast majority of parents lie to their children, including the vast majority that teach lying is never OK.

WHITFIELD: That's such a harsh thing. Why is it that parents feel that they don't want to be truthful with their kids. I hate the word "lie," but I have to use it in this segment.

HEYMAN: I don't think parents really feel like they don't really want to be truthful with their children as much as they want to accomplish important goals to them.

In our research we looked at two of those, which is lying to influence children's emotions and trying to influence their behavior.

To give a quick example of that, a parent might tell a child you did a great job playing the piano when the child did a terrible job, or might tell a child the family pet went to live with another family rather than telling them it really died to keep the child from getting really upset.

WHITFIELD: So there are areas where it's kind of OK to protect their feelings, or is it?

HEYMAN: I think it really is true that it's a difficult dilemma for parents. I think that it is important for parents to be truthful and at the same time realize being truthful isn't the only important value.

As one of the parents interviewed said, sometimes children aren't ready for the realities of the adult world, and it's important to protect them. And I think parents lie to protect them.

But in a lot of cases, the lies backfire. I talked to parents who lied about pets dying and they demand to go visit the family over and over, again.

(CROSSTALK)

WHITFIELD: What about in the case of, you know, Santa is going to be thrown into the mix here, the Easter Bunny, these fantasy figures. At the same time, it's part of the child lore. Is that a lie?

HEYMAN: Yes, that it's an interesting question. We had trouble figuring out that is really a lie, and we think fantasy is really important for children's development. And so maybe that will be our next research where we figure that out.

But we were really interested in another kind of lie, too, which are lies to influence children's behavior. A lot of parents say, if you don't eat your vegetables, you'll get pimples all over your face, or if you don't go to sleep early, a mean person is going to take you away from mommy or daddy. That surprised us.

WHITFIELD: Gosh. That was kind of harsh.

So when you talk about lies or white lies, are they all defined the same? There's no white lie, fib, but it's all in the same category?

HEYMAN: We looked at lies to influence children's emotions and ones to influence their behavior. And the white lies are a subset of ones to influence their emotions.

WHITFIELD: So what's a parent to do? I mean, it is tough, as you said. Some parents said their kids are of an age group, they are not ready to hear all the dirty details. So how do we take the information and move forward and are good influences on our kids?

HEYMAN: One thing to do is being truthful with children but not filling in all the gory details. Children will let you know with their questions what they are ready to hear and find out about. I think that's a helpful approach.

Another thing is to not necessarily tell children lying is always wrong, but to get into more elaborate, extended discussions with children about the complexities in the real world when you want to be truthful, but you also want to be considerate of other people's feelings.

WHITFIELD: Did your study cover whether it's gotten worse or better in recent years?

HEYMAN: We haven't looked at it yet. This is our first study. We are looking at it internationally and the consequences. This is just the first step.

WHITFIELD: Tell me about the next step, internationally. Do you mean the American lifestyle compared to abroad?

HEYMAN: Yes. We are working with other countries, and we are getting examples of lies all over the world, and we are going to be looking at which lies are common in which places and what the consequences are.

WHITFIELD: This is going to be a big book, isn't it?

HEYMAN: Maybe so.

(LAUGHTER)

WHITFIELD: What are the funniest lies?

HEYMAN: We heard so many creative lies. That was interesting to us about the study.

For example, one mother told us about her young always son cried whenever she went out without him. And he asked where she was going. She was going out to dinner with her husband, and she didn't want him to cry. So she told him she had to save her friend being kidnapped by a witch.

WHITFIELD: What? That's cruel.

(LAUGHTER)

HEYMAN: Or more simple ones ...

WHITFIELD: That had to be traumatizing for the kid.

HEYMAN: You wonder once kids figure this out what they think. I had college students say they were traumatized by their parents lying to them still as adults.

WHITFIELD: The cruel world of lying. Dr. Gail Heyman, thanks so much. It was fun, appreciate it.

HEYMAN: Thank you.

WHITFIELD: And we will all vow to always tell the truth to your kids, no matter what. San Francisco was rocked by an earthquake 20 years ago today. It created a lot of destruction, but it also brought two people together. And it was the start of their lifelong friendship.

(COMMERCIAL BREAK)

WHITFIELD: Coming up, "Americana in Focus," a look at some of the jobs outlasting these tough economic times. Take a look.

(BEGIN VIDEO CLIP)

CHRISTIAN F. MARTIN IV, MARTIN GUITARS: There's great satisfaction in putting things back together that somebody else thinks couldn't be fixed.

It makes you feel good. I can't tell you the number of people I've met who tell me that the guitar you've made is the best one we ever made.

(END VIDEO CLIP)

WHITFIELD: Cool stuff from shoes to guitars. And it goes on. It's straight ahead in a few minutes.

And then at 4:00, dollar dilemmas. What you should be doing with your money as the economy struggles to recover. It's all straight ahead here in the CNN newsroom.

Now to a story that we brought you at the top of the hour -- 20 years ago today, a big earthquake struck San Francisco. But something unexpected grew from all the destruction the quake created, a friendship between a woman who was afraid to die alone and a firefighter who actually helped save her life.

Dan Simon has their story.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Downtown San Francisco in the background, and we zoom in to Candlestick Park.

DAN SIMON, CNN CORRESPONDENT: It's often been called the "World Series earthquake." The quake rattled the Bay Area just before game three between the San Francisco Giants and Oakland A's.

Al Michaels was previewing the matchup.

It had a magnitude of 7.1 and lasted only 10 to 15 seconds, long enough and powerful enough to collapse a major freeway and a section of the San Francisco/Oakland Bay Bridge -- 63 people died.

But this is a story about a survivor and the man who saved her life.

SIMON (on camera): What was it like when she finally came out?

GERRY SHANNON, RETIRED FIREFIGHTER: It was exhilarating. It was just a tremendous feeling of accomplishment.

SIMON (voice-over): Gerry Shannon is a retired San Francisco firefighter. He brought us back to the place that made him an instant hero.

SIMON (on camera): What goes through your mind when you know that there's a woman trapped there and you're the only person really who can get her out?

SHANNON: I didn't know if I could get her out. I mean, it really didn't look very promising at the time.

SIMON (voice-over): The quake struck just after 5:00 p.m. on October 17th, 1989. The damage was widespread, but things here in the marina district were particularly bad. Many buildings caught fire or collapsed.

Caught in the rubble of her four-story apartment building, Sherra Cox was unable to move, and flames had started to engulf the upper floors which had pancaked onto of her. This is how it was explained 20 years ago, not knowing if trying to save Sherra would cost her own life.

SHANNON: All of a sudden there was this dead silence and all I could think of is, gee, I wonder how they'll approach my family and let them know if something happens.

I mean, all the corner buildings were collapsed.

SIMON: Gerry is a little grayer now, but the memory is just as vivid, describing how he used a chainsaw to carve a tunnel to pull Sherra out. CNN caught up with her, as well, all those years ago.

SHERRA COX, EARTHQUAKE VICTIM: He's to me the epitome of what firemen, heroes, everything is supposed to be.

SIMON: The story could have ended there, but didn't. It was the beginning of what would become a beautiful friendship. Sherra was single with no family. Gerry and his family were practically all she had. They celebrated Thanksgivings and Christmases together. He'd stop by regularly to check on her.

And he was with her every day this summer when Sherra was in the hospital. Her circulation as a result of her injuries was poor, and Sherra died nearly 20 years after the quake.

SHANNON: I miss her. And I'm grateful for the things that I had. I didn't realize until this happened and I got to know her how grateful I am for my family, where I live, how I live. I just took it all for granted, and she never did. I learned a lot from her.

SIMON: It's often been called the "World Series earthquake." Indeed, for Sherra Cox and Gerry Shannon, it created a grand slam of memories.

Dan Simon, CNN, San Francisco. (END VIDEOTAPE)