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Dubai's Debt Crisis; Murder Charges Against Three Army Sergeants; 'Art From His Soul'
Aired November 27, 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 now for your top-of-the-hour reset.
I'm Tony Harris in the CNN NEWSROOM.
It is 9:00 p.m. in Dubai, where a cash flow problem for the Gulf emirate is rattling stock markets around the globe.
It is 8:00 in the evening in Tehran, where a U.N. nuclear agency scolds Iran for what it calls nuclear stonewalling.
It is noon on the U.S. East Coast and 9:00 on the West, where shoppers coast to coast are going gangbusters this Black Friday.
Let's do this -- let's get started.
Let's begin with the debt crisis in Dubai and its impact on global stock markets.
Stocks sank in Asia, but mostly recovered across Europe after Dubai told creditors it needed a six-month postponement on debt payments. Investors fear massive losses across the financial industry if Dubai defaults.
What are the chances of that?
Dubai is one of seven Persian Gulf states that make up the United Arab Emirates. The city has boomed in the last decade, transforming the desert -- we're talking about the desert -- into a sea of skyscrapers. Dubai's economy, more dependent on tourism than oil.
Let's talk about this Dubai crisis with our chief business correspondent, Ali Velshi, right here with me in Atlanta, and Richard Quest in London.
Richard, let's start with you here on the bird (ph) here.
What's causing so much trouble for Dubai?
RICHARD QUEST, CNN INTERNATIONAL CORRESPONDENT: Too much debt and an inability to pay it back when it should be paid. They borrowed a huge amount of money, and although they are backed by some very big oil-rich parts of the region, they simply didn't have the cash to pay back the money when it was necessary.
I think you need to understand here, Tony, that this is not a global banking crisis. This is not going to take us all down with them. This is not round three of Lehman Brothers and onward.
This is a specific problem affecting Dubai that has set off a round of nerves in the rest of the world. Those nerves are slowly being soothed. It's been a nasty hiccup, but ultimately, it's not going to go much deeper than that.
HARRIS: But, wait a minute here, Ali. We've watched the Asian markets tank. And, OK, so Europe is rebounding a bit, and I guess we're off of session lows for the U.S. stock market.
ALI VELSHI, CNN CHIEF BUSINESS CORRESPONDENT: Yes, we were going to start these markets down 300 points on the Dow. We're down 125 or something now.
HARRIS: Yes. What do you make of this?
VELSHI: Well, I think Richard is entirely right. And what you'll hear Richard and me saying through the course of the day is all of the same stuff, but both of us pull back from the brink a little bit, because the lesson that we've all learned as financial journalists is that no one wants to say this is nothing.
It is not a ton. It is a regional issue. What's happened is if you look at -- and if you haven't been to Dubai, part of the story is, if you've ever been to Dubai, or you've seen pictures of Dubai or Abu Dhabi, you kind of get the point -- the construction boom.
It's a Disney, Las Vegas, Phoenix. Put it all together and you've got buildings and massive infrastructure. All of this stuff, including growth in China and growth in India, all of this stuff at some point has to dial back, and we are seeing the dialing back of Dubai, but we have memories of not being able to make payments and the influence that has on the world financial structure.
And we are a little nervous, as Richard says. Markets have been surging along. We're hoping we're out of this recession. Then to find out somebody can't pay its bills makes everybody very nervous.
HARRIS: Richard, the Dubai miracle built on shifting sand, and the latest example of greed run amok. In all -- you can't get $100,000 to keep your popcorn business going in Chicago, but you want billions to build, what, ski slopes in the desert? We can make that happen for you, Richard.
QUEST: Do calm yourself. It isn't good for a man of your age, like yourself to be getting -- look, of course there is an element of stupidity about this.
I mean, they built -- they've got a ski slope in the middle of -- an indoor ski slope in the middle of the desert. They have built massive infrastructure projects when there is no real, fundamental industrial or other economic growth underpinning it. So, yes, but what has happened is that they have really -- there's been a coming home -- the chickens have come home to roost.
HARRIS: Oh, yes. QUEST: However, Abu Dhabi, Saudi Arabia, other big, oil-rich, Gulf nations, will ultimately stand behind them in some shape or form. And I suspect it will be sooner rather than later. For Dubai, to put it in boxing terms, it's had a bloody nose from what's taken place over the last 48 hours.
VELSHI: But it's not going to be a knockout.
HARRIS: Ali, do you buy this? Do you buy this, that Abu Dhabi will step in and save Dubai?
VELSHI: Yes, but it's a complicated relationship between those two states. They're all part of the UAE. Everybody kind of expected they would have already stepped in. They didn't. I think you'll see this develop a little more next week, but you are not going to see the failure or the defaults of Dubai.
HARRIS: Developing next week.
What's going to happen with U.S. stocks? All right, we're into Friday. We're going to shut down the trading day in an hour.
VELSHI: It's Friday. Most traders didn't go back to work today to start with. So, whenever you have thin trading, anything gets exaggerated.
So, if the Dow was going to be down 30 points today, you might see a Dow that's down 125 points right now. If it were going to be up, it would have been up more. So don't worry about what happens on a holiday Friday here. And, combined with the fact that Middle Eastern markets are all closed, because it's Eid in the Middle East.
HARRIS: Yes. Yes.
VELSHI: So, there's a whole lot fewer people trading today. I wouldn't worry about what today's market reaction is.
HARRIS: Gentlemen, appreciate it. Thank you so much.
Richard, appreciate seeing you in London. Have a great day, and happy holidays to you.
And Ali, you're sitting in for Mr. Sanchez today.
VELSHI: That's right.
HARRIS: See you a little later.
VELSHI: I will.
HARRIS: Let's get to Black Friday here, in full swing right now coast to coast. Stores are luring shoppers with deep, deep discounts this season, hoping to rebound a bit after last year's disappointing sales. The National Retail Federation predicts 134 million people, more than a third of the country, will shop this weekend. Many retailers' profits, even survival, may depend on how much you spend this holiday season.
New fallout to tell you about from a fatal airstrike ordered by German forces in Afghanistan. The former German defense minister and current labor minister resigning today over the incident.
Yesterday, the army's chief of staff stepped down. The September attack in the northern Kunduz Province killed at least 90 people, many of them civilians.
Meanwhile, NATO's secretary-general telling CNN the alliance is willing to increase its troop numbers in Afghanistan.
(BEGIN VIDEO CLIP)
ANDERS FOGH RASMUSSEN, NATO SECRETARY-GENERAL: I think it's a bit too early to speak about concrete troop numbers, but I feel confident that all allies will step up to the plate and follow suit once President Obama has made his announcement.
(END VIDEO CLIP)
HARRIS: And the president will make his Afghanistan strategy speech next Tuesday at 8:00 p.m. Eastern Time. CNN's special coverage starts at 7:00 Eastern.
Watch it here live and then tell us what you think. After the speech Tuesday, you can go to my blog, CNN.com/Tony, and leave us your thoughts, or you can send us an iReport. That address is CNN.com/ireport. A large portion of our newscast on Wednesday will be devoted to your reaction to the president's decision.
After an 11-day mission, the Space Shuttle Atlantis made a perfect landing in Florida this morning. Take a look at the pictures. Fascinating stuff. Just terrific.
The weather at Kennedy Space Center, sunny, clear. The crew delivered key spare parts to prolong the life of the International Space Station.
"Killings at the Canal: The Army Tapes." Coming up, our continuing investigation into the deaths of four Iraqi detainees and the three U.S. soldiers who were charged with the murders. It is a story you will see only on CNN.
First, though, our "Random Moment of the Day" in 90 seconds.
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(MUSIC)
HARRIS: Yes. Yes. Yes.
Where is he? This little boy is barely old enough to walk, but he has got Michael Jackson's moves down pat. It is our "Random Moment of the Day."
Enjoy.
Oh, yes, that's good stuff. Our "Random Moment of the Day" from the food festival in Santa Monica, California.
We're back in a moment.
(COMMERCIAL BREAK)
HARRIS: A soldier-turned-witness breaking his silence and revealing the secret that would lead to murder charges against three Army sergeants. But did he do it to see justice served or out of self-interest? We will let you decide in an exclusive interview you will only see here, and it goes to the heart of our continuing report into the execution-style shootings of four Iraqi detainees in Baghdad.
The defendants, decorated servicemen, have all been found guilty of the crime. And what their fellow soldier said may have sealed their fate.
Here is Abbie Boudreau of our Special Investigations Unit with "Killings at the Canal: The Army Tapes."
(BEGIN VIDEOTAPE)
ABBIE BOUDREAU, CNN SPECIAL INVESTIGATIONS UNIT CORRESPONDENT (voice-over): You are watching a murder confession. This is the story of how, after nine months of silence, a dark secret came to light.
UNIDENTIFIED U.S. ARMY INTERROGATOR: When you shot the guy in front of you, where did you shoot him?
SGT. MICHAEL LEAHY, U.S. ARMY: It was in the back of the head, center of the back of the head.
BOUDREAU: Slowly, the facts would begin to emerge. Thirteen soldiers were on the mission that day. They had taken four Iraqi men into custody and brought them to this canal. In time, investigators would learn three of the soldiers, three sergeants, killed them.
This is Sergeant Michael Leahy.
UNIDENTIFIED U.S. ARMY INTERROGATOR: And all four of them are still standing up at this point?
LEAHY: Before we shot them?
UNIDENTIFIED U.S. ARMY INTERROGATOR: Right.
Were they standing up or were they on their knees?
LEAHY: To my best...
UNIDENTIFIED U.S. ARMY INTERROGATOR: Because other guys were saying they were on their knees.
LEAHY: To my best recollection, they were standing up, but they could have been on their knees.
BOUDREAU: It happened at this canal in Baghdad in March 2007. But what exactly happened? And why? All 13 soldiers would be questioned. This soldier never charged. But all would be pushed to break down the bond of this band of brothers to get to the truth.
UNIDENTIFIED U.S. ARMY INTERROGATOR: You're in the United States Army. You're a colonel. They want -- they want the truth, you know? And no band of brothers loyalty, although I know you all shared a lot of rough days down there together, can keep you from telling the truth now that you're being questioned about it.
BOUDREAU: This man, Jess Cunningham, was also there. He was the first to reveal the secret.
JESS CUNNINGHAM, FORMER ARMY SERGEANT: I did the right thing. And I'm not going to hide behind excuses. I'm not going to hid behind false brotherhood.
BOUDREAU: But the former sergeant did not speak up for nine months.
(on camera): Why didn't you report it right away?
CUNNINGHAM: Fear.
BOUDREAU: Fear of what?
CUNNINGHAM: Retaliation. Fear of being alone. Fear of being the only one that had a problem with it. Fear of so many things could have happened to me.
BOUDREAU (voice-over): Cunningham insists he finally spoke up because it is the right thing to do. And in time, that would lead to First Sergeant John Hadley, the sergeant in charge that day. Earlier this year Hadley was convicted of premeditated murder and conspiracy to commit premeditated murder.
This man, David Court, is Hadley's attorney.
DAVID COURT, JOHN HADLEY'S ATTORNEY: Sergeant Cunningham did not come forward for any altruistic move. He only mentioned this because he thought it would get him less punishment. He didn't do it because he thought, "I've got to blow the whistle."
BOUDREAU: Remember, Cunningham waited nine months before coming forward. He was out of Iraq and back on his base in Germany. Cunningham was facing disciplinary charges for assaulting Sergeant Michael Leahy and for being disrespectful to another officer. That's when he told his own lawyer about the killings at the canal.
(on camera): You can see why some people might say the only reason you came forward was because you didn't want to get yourself in trouble. You wanted to get out of that situation.
CUNNINGHAM: No. That's not the case. I don't really care what other people think about me. I don't worry. I'm not going to lose any sleep. I did the right thing. I did the right thing that day.
COURT: Sergeant Cunningham is making himself look better than he was. It's a common human trait. But I'm not going to let it affect the image of John Hadley. Because John Hadley did not force anyone to go to the canal.
BOUDREAU: So what are the facts? What was the motive? Only weeks before the incident, their unit, Alpha Company, lost two soldiers. One died when an IED exploded; a sniper killed the other. Cunningham says the losses devastated First Sergeant John Hadley, who led the men that night.
(voice-over): Hadley believed the rules for detaining suspects were flawed. He feared the Iraqis they'd taken into custody would be released, only to return and try to kill U.S. soldiers.
CUNNINGHAM: I believe he knew right from wrong. And I have no respect for him.
BOUDREAU (on camera): You don't have respect for him?
CUNNINGHAM: No. I don't.
BOUDREAU (voice-over): Cunningham is no longer in the Army. He received immunity for testifying.
COURT: I would -- if I were Sergeant Cunningham, not be comfortable in a combat environment.
BOUDREAU (on camera): Why do you say that?
COURT: I'd be worried that, having broken the band of brothers band, something might happen to me.
BOUDREAU (voice-over): As the investigation unfolded, interrogators prepared for a public relations nightmare.
UNIDENTIFIED U.S. ARMY INTERROGATOR: We have a hell of a lot of pretty damn concerned high-level people way the hell above my pay grade that are grabbing their ankles and bracing for what's bound to be an ugly damn mess if this becomes a big drawn out, public knife fight.
(END VIDEOTAPE)
HARRIS: When does a soldier cross the line from engaging the enemy to committing murder? We are taking a close look at that question straight ahead.
(COMMERCIAL BREAK)
HARRIS: Let's get you caught up on our top stories now.
Concern over Dubai's ability to pay its bills is driving stocks down today. Asian markets fell two to four percent. Dubai told creditors it needs a six-month reprieve on $60 billion worth of debt payments. Investors are worried a possible default could spur more massive bank losses.
A new study has some sobering numbers on diabetes. A University of Chicago report predicts the number of Americans living with the disease will nearly double, topping 44 million by 2034, and the cost of treating them will triple to more than $330 billion.
And take a look at this. Shuttle Atlantis coming in for a landing at Kennedy Space Center in Florida. Mission Control called it a picture-perfect end to the crew's 11-day supply mission to the International Space Station.
Another check of your top stories in 20 minutes.
Chances are you've seen the art of Ernie Barnes and didn't even realize it. It is what we're talking about in our "What Matters" segment.
Barnes was a former pro-football-player-turned-artist who died in April. His distinctive style earned him fans from all walks of life, and his art was even featured on the sitcom "Good Times."
Fredricka Whitfield has the story of the most incredible artist you've never heard of.
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WHITFIELD (voice over): It is this painting that was, perhaps, America's first glimpse of the work of Earnest Eugene Barnes Jr., featured in the CBS show "Good Times," a piece of art called Sugar Shack. The same painting graces the cover of the legendary singer Marvin Gaye's "I Want You" album.
That was in 1976, and the demand for his work blossomed, says former ABC "Good Morning America" anchor David Hartman.
DAVID HARTMAN, FORMER ABC NEWS ANCHOR: Ernie and I met, like, 40 years ago in Los Angeles. And I was mesmerized by a painting I saw which I couldn't afford and kept thinking about it all night, went back the next day and tried to buy it. And he happened to be standing there.
I didn't know he was the artist. And he said, "Well, I'm sorry, that painting is sold." And I was heartbroken because I wanted that painting. And he said, "Well, would you like me to paint you another one sort of like it?" And I thought, oh, my goodness, you're Mr. Barnes.
So that began our friendship of the last 40 years.
WHITFIELD: Barnes, whose specialty was colorful, elongated human figures, would become known internationally for two types of paintings: sports images and scenes from black America, both inspired by his own history.
He explained in a 1990 CNN interview. ERNIE BARNES, ARTIST: We all have the -- for one thing, the image of the ghetto as bringing on the crime, filth and illiterates. And there are people who live in deprived circumstances who have ambitions and dreams. And they are taking the worst of times and transforming them into the best of times.
HARTMAN: Look, I don't know anything about art. I just know that when I looked at his paintings, I get it.
WHITFIELD: It is that gift to reach people, says "Good Times" creator Norman Lear, that inspired him to use the artist's work in the hit show.
NORMAN LEAR, "GOOD TIMES" CREATOR: There aren't that many artists who catch motion, who make snapshots of life. And Barnes is one of those people.
WHITFIELD: The desire to paint sports images came from Barnes' days as a college and professional football player, six years as an offensive lineman in the Old American Football League. An artist, he said, trapped in an athlete's body.
BARNES: I know that that was something I had to do in order to get to where I am now.
WHITFIELD: Thirty-five-year-old artist Akili Richards says it was Barnes who inspired him to paint.
AKILI RICHARDS, ARTIST: Ernie tried to show the world and show what was going on in the world. And I kind of do the same thing with a, you know, slight different technique and things of that nature. But he shows the soul of humanity, and I wanted to do the same.
WHITFIELD: That comes as no surprise to North Carolina's central chancellor, Charlie Nelms.
CHARLIE NELMS, CHANCELLOR, NORTH CAROLINA CENTRAL UNIVERSITY: He continues (INAUDIBLE) more of a teacher than an artist. But he taught through his art, and he was able to touch the spirit and the soul of people through his art without using words. He was able to do it in images. And I think that's what made him so special as an artist.
WHITFIELD: Six months after Barnes' passing, his alma mater, NC Central, held a memorial. Barnes would become one of the most respected artists of his generation. His accomplishments too numerous to mention here. More album covers, art shows hosted by the rich and famous spanning generations, like Ethel Kennedy, Congressman Jack Kemp, Representative John Conyers, political analyst Donna Brazile and actor Charlton Heston. And in 1984, Barnes was appointed the official sports artist for the Olympic Games in Los Angeles.
Later, the 1987 basketball champion Los Angeles Lakers would commission him to paint a piece called Fast Break. The family of actor Will Smith wanted this oil of his two sons. And the list goes on. LUZ RODRIGUEZ, BARNES SPECIAL ART TRUSTEE: Ernie Barnes' work crossed all racial, society, educational levels. It appeals to everyone.
WHITFIELD: Luz Rodriguez, his personal assistant for 21 years, says all Barnes wanted to do was inspire us all like he did with artist Akili Richards, who specializes in digital airbrushing, a process not available when Barnes became an artist. But if it were...
RICHARDS: It would be breathtaking. Just his use of the human form, it just says a lot.
He has a painting called Victory in Overtime. It's a picture of an overtime of a football game. And without showing any faces, you can tell the emotion on the different players' bodies by using the body movement instead of necessarily seeing their faces. So, you know, he knew how to use the body magnificently.
WHITFIELD: That, another Barnes trademark. Most of his characters cannot see.
BARNES: Well, I tend to paint everyone, most everyone, with the -- their eyes closed because I feel that we're blind to one another's humanity. So, if we could see the gifts, strengths and potentials within every human being, than our eyes would be opened.
WHITFIELD: Ernie Barnes, an artist who used blindness to help us all see.
Fredricka Whitfield, CNN.
(END VIDEOTAPE)
HARRIS: We should tell you there is a new exhibit featuring the last works of Ernie Barnes in the planning stages right now. Organizers tell us it will be called Liberating Humanity From Within.
For more, you can go to ErnieBarnes.com.
The U.N.'s nuclear watchdog is sending a strong warning to Iran about this recently disclosed facility. Will words be enough?
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HARRIS: CNNMoney.com is all over the Dubai story today. Dubai is asking for more time to pay over $3 billion in debt, and that news absolutely rippling through international markets and leading to a fairly steep sell-off globally.
Let's take a look at the numbers. The New York Stock Exchange in about the last half hour of the trading day -- trading wrapping up early today, at 1:00 PM Eastern time -- as you can see, the Dow is down 136 points, stabilizing in that range, certainly off of session lows. And the NASDAQ at last check was down 33 points. A strongly worded warning to Iran. The U.N.'s nuclear watchdog agency told the country to suspend construction of its once-secret nuclear facility. CNN's senior international correspondent Matthew Chance is in Moscow for us.
And Matthew, if you would, what are the specific concerns being voiced now by the U.N.'s nuclear watchdogs?
MATTHEW CHANCE, CNN CORRESPONDENT: Well, Tony, they've got a whole range of concerns that they've set down in a resolution that's been backed by two thirds of the countries that take part in the U.N.'s nuclear watchdog agency, the IAEA in Vienna. First and foremost, that secretly developed nuclear site that the Iranians only declared to the international community and to the U.N. back in September -- it's located near the Shia holy city of Qom. It's there to develop enriched uranium, and there are a great deal of questions that it poses.
It says -- the IAEA says that it doesn't do much to build international confidence in the idea that Iran has fully disclosed all of its nuclear program. And the report says it raises questions about whether there are more nuclear sites that Iran hasn't told anybody about across the country, as well. And so a very critical report that has been backed not just by countries who have traditionally been critical of Iran's controversial nuclear program, but also by countries like Russia and China, as well, that have in the past provided some diplomatic support to Iran over the issue, Tony.
HARRIS: Well, Matthew, Mohamed elBaradei, as you know, who heads up the IAEA, had been considered a bit soft on Iran. Now that he is leaving, are things likely to change?
CHANCE: It's not clear what the attitude of his successor, Mr. Amano, a veteran Japanese diplomat, will be. But certainly, this resolution, in the words of -- or in the minds of perhaps governments like the United States and Britain, who have been pushing for tougher sanctions against Iran -- they'll be encouraged by this resolution because it does have the backing, as I mentioned, of Russia and China.
They'll be going to the U.N. Security Council in the new year. And if Iran doesn't conform to its international obligations, they will be looking for tougher sanctions against the Islamic Republic. Washington has already made it clear that's its intention, Tony.
HARRIS: Already, CNN's Matthew Chance for us in Moscow. Matthew, appreciate it. Thank you.
Let's try to get some more answers on the Iran situation. Joining me live from Washington is the Deepti Choubey, and she is the deputy director of the nonproliferation program at the Carnegie Endowment for International Peace.
And Deepti, good to see you. Thanks for your time.
What will it take -- I want to cut to the chase here -- to get Iran to suspend construction at the Qom facility? DEEPTI CHOUBEY, CARNEGIE ENDOWMENT FOR INTL. PEACE: Well, I think that today's resolution from the IAEA is a first step in trying to get to that, to that end game. And what that resolution did is that it sent a very strong signal to the Iranians that the support that it has counted on in the past from states like China and Russia, and even from the non-aligned movement, is no longer there. And what that really means is that the strategic context in which Iran has been operating and trying to play negotiating games has really dramatically changed. So it's...
HARRIS: Do you really believe that? Do you really believe this report, this censure, this scolding, is a game-changer?
CHOUBEY: I think it's very important. One of the -- one of the real issues that's happening in the broader nonproliferation regime is states are concerned that the system of rules are not working as well as they should. So this action by the IAEA, where Iran is being called out for major rule-breaking, is an important signal, and that gives space to other countries, particularly Iran's neighbors, that the rules can work. So one step that's happened which is important is that the rule-breaking has been called out.
HARRIS: Right.
CHOUBEY: Now, whether there are consequences, such as sanctions or things like that, you know, that's a separate question.
HARRIS: Why did Iran back away from the Qom reactor deal earlier this month?
CHOUBEY: Yes, you mean the low-enriched uranium deal, right?
HARRIS: Yes. Absolutely.
CHOUBEY: I think -- I think that Iran is encountering a lot of domestic disarray, and even though they should say yes, it is a great deal for them, they are just unable to say yes yet. However, the signal that's sent to them, where they don't have the cover of Russia and China anymore, you know, we're hoping that those leaders and the regime will wake up. And in the meantime, if they don't, I think they're giving further fodder to the Iranian people that the decisions of this regime, which are already in question after the June 12th elections -- you know, that they're just further delegitimizing themselves.
HARRIS: Yes. Matthew Chance mentioned it just a moment ago. Senior administration officials are certainly telling us now that the United States is prepared to push for significantly stronger sanctions on Iran. What is your view of sanctions? Will tougher sanctions work?
CHOUBEY: Right. And here it's important to remember that in all the debate about sanctions, the real purpose of it is to raise the costs of Iran not talking and not negotiating. So sanctions are a means to an end, and that end is to get them to the table. You know, I think what the hope is right now is that the threat of being called out, that their reputational costs to Iran will get them to reconsider, accept the LEU deal and really engage the major powers.
HARRIS: How about the threat of a military strike on the Qom facility?
CHOUBEY: Right. Well, here the Israelis have said that they will at least hold off until the end of the year. And again, if what the Israelis are doing are just trying to raise the costs of Iran's current course, that's one thing. But I think that we have to be honest and recognize that there is no military solution to this problem and we need all the nations of the world who are engaged in this to do their best to get Iran to the table.
HARRIS: All right, Deepti Choubey, great to see you. Come on back and see us again on this issue.
CHOUBEY: Right. Thank you.
HARRIS: Things may be heating up on the legal front for that couple accused of crashing a White House state dinner. We're back in a moment.
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HARRIS: And let's get you caught up on our top stories now.
The Secret Service now considering a possible criminal investigation of the Virginia couple who crashed a White House state dinner. A spokesman says that's one reason why they haven't given details of what happened when the wannabe reality stars reached the security checkpoint.
Concern over Dubai's ability to pay its bills is driving stocks down today. Asia markets fell 2 percent to 4 percent. Dubai told creditors -- listen to this -- it needs a six-month reprieve on $60 billion worth of debt payments. Investors are worried a possible default could spur more massive bank losses.
And space shuttle Atlantis touching down this morning at Florida's Kennedy Space Center. And Chad Myers, look at this. Mission Control called it a picture-perfect end to the crew's 11-day mission to resupply the International Space Station. There was an earlier shot, I don't know if we saw it, Chad, where the shuttle was coming in...
CHAD MYERS, AMS METEOROLOGIST: Yes.
HARRIS: ... on final approach over what looked like maybe some wetlands. It was -- it was absolutely beautiful. The shot was great, and the landing, the touchdown...
MYERS: Oh, yes.
HARRIS: ... was perfect. Nice way to end it, huh?
MYERS: That whole area, all the way from New Smyrna, all the way down to Melbourne is spectacular. And you know, the waterfowl and... HARRIS: Yes.
MYERS: ... you know, just really -- - it's just great stuff down there.
HARRIS: It was a terrific sight. It really was.
MYERS: Yes. And you know, they're always on final approach, though, Tony. They don't get a second one.
(LAUGHTER)
HARRIS: And you know what was interesting? Someone was telling me that, you know, it looks very smooth on television, but this thing is literally almost dropping out of the sky (INAUDIBLE)
MYERS: It's like landing a plane on the deck of a carrier.
HARRIS: Yes.
MYERS: It is that type of downward motion.
HARRIS: That was terrific.
MYERS: Let's hope none of these planes in the air today have to take that kind of landing, 5,100 planes in the sky right now, Tony. Yesterday, a few fewer than that. But Wednesday at this time of the day, there were 6,800 planes in the sky. So 1,700 fewer planes flying around right now. That means that the planes are probably doing a little bit better on timing. And in fact, there's not one single airport delay to talk of. Even in Boston and New York, where you would think there might be a delay or two because of the wind -- and you know what, Tony?
HARRIS: Yes?
MYERS: Don't the retailers always find something to complain about?
HARRIS: Yes. Absolutely.
MYERS: It's too wet.
HARRIS: Yes!
MYERS: It was too cold. It was too warm. Well, you know, obviously, they've got something now. On the busiest day, it's raining in Boston. It's windy in New York. Oh, no! But then isn't that -- don't they complain when it's too warm because nobody buys coats?
(LAUGHTER)
HARRIS: Yes!
MYERS: You wonder where they come up with this stuff sometimes, don't you?
HARRIS: Oh, man (INAUDIBLE)
MYERS: Let's hope you're out there shopping and spending your money and all the retailers are doing really good out there, as well. And if you are going to be out there, out and about today, make sure you have an umbrella for the Northeast. But other than that, the East Coast is going to be just spectacular for the next few days. And I'll look at that at 1:00 o'clock, Tony.
HARRIS: You're awesome. See you then, Chad.
MYERS: See you, buddy.
HARRIS: We'll take a quick break. You're in the CNN NEWSROOM. We're back in a moment.
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HARRIS: When does a soldier cross the line from engaging the enemy to committing murder? We are taking a close look at that question with our continuing investigation into the deaths of four Iraqi detainees gunned down by three Army sergeants, who have all been convicted of the crime. We went straight to the top for answers, talking to the general who oversees the treatment of detainees in Iraq.
Here is Abbie Boudreau of our Special Investigations Unit with "Killings at the Canal: The Army Tapes."
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ABBIE BOUDREAU, CNN SPECIAL INVESTIGATIONS CORRESPONDENT (voice- over): This is a U.S. Army interrogator trying to coax out the truth about four murders in Baghdad. Here he's empathizing with 1st Sergeant John Hatley. He says he understands why Hatley and two other sergeants murdered four Iraqis whom they had detained.
FIRST SERGEANT MICHAEL LEAHY, U.S. ARMY: I have no doubt in my mind, no doubt in my military mind whatsoever, that those guys were the problem. And frankly, I have no doubt in my mind that they're insurgents and they're shooting at our guys. I'm perfectly comfortable with giving them lead poisoning before they shoot any more of our guys up.
BOUDREAU: Though he never confessed, First Sergeant John Hatley and two other sergeants would be convicted of premeditated murder. Their unit found four Iraqi men they thought were shooting at them. They detained them. But rather than following military rules for detainees, they took them to this canal and killed them, execution- style.
The interrogator says he understood the motive. They were tired of detaining people only to have them released and shooting at them again. UNIDENTIFIED U.S. ARMY INTERROGATOR: You guys suffered some losses. And one's never good and a bunch is that much worse. And -- and what I'm pretty damn confident that I know from all the guys we talked to -- and we're going to hear from all the rest -- is that at that time, you all came up with -- you all recognized, We didn't catch these guys with a smoking gun in their hands, and we're going to end up cutting these (EXPLETIVE DELETED) loose, and they're going to be shooting our guys tomorrow, like we're (EXPLETIVE DELETED) pop-up ducks in an arcade game.
BOUDREAU: Cutting the suspects loose only so they might be free to shoot at soldiers again. At the time of the murders, soldiers were ordered to handle detainees by the rules from this memo. The memo was drafted as a response to the scandal with detainees at the Abu Ghraib prison.
Brigadier General David Quantock now oversees detainee operations.
BRIG. GEN. DAVID QUANTOCK, U.S. ARMY: Before the memo was written, I mean, a person could just bring a detainee to our facility and we would take them in, with little or nothing.
BOUDREAU: The memo said soldiers could no longer detain suspected insurgents simply because they were seen as a threat. They needed photos of physical evidence, photos of the detainee at the crime scene and of the detainee next to the evidence. The memo also called for physical evidence. Soldiers had to bring in illegal rifles or IED-making materials. And they needed a sketch of the crime scene, indicating place of capture and location of weapons, explosives or munitions.
(on camera): The memo also required soldiers to gather statements written by eyewitnesses to the criminal activity. In other words, the burden of proof to hold detainees was high.
You've said yourself, General, that there were many military operations where the focus was not on evidence gathering. So what happened in those cases?
QUANTOCK: Well, in most cases, if we don't have anything, they eventually are released.
BOUDREAU (voice-over): More than 87,000 detainees were captured during the war in Iraq. Quantock says the majority of them, nearly 77,000, were released for lack of evidence.
QUANTOCK: We're asking them to take basic evidence, which they've been trained to do. Again, we've got the greatest soldiers in the world and I don't accept that they can't take basic evidence off of a -- off of a crime scene.
BOUDREAU (on camera): General, though, if it's so easy to collect this basic type of evidence, then why were so many detainees let out because of lack of evidence? QUANTOCK: Well, I mean, it took us a while. I mean, it took us a while to realize -- I mean, it goes back to my point about, you know, we were -- we're trying to make the fight fit the Army, as opposed to have the Army fit the fight. And it took us a while to get after that piece about collecting evidence.
I think a lot of times, we thought the insurgency would dissipate. We were working closely with the government of Iraq. We were trying to improve the Iraqi security forces. But at the end of the day, it didn't work out very well. We had to get better at taking evidence off the crime scene.
BOUDREAU (voice-over): As for the frustrations it caused some soldiers, this is Sergeant Michael Leahy. Of the three sergeants convicted of murdering the four Iraqi detainees, only he confessed on tape.
UNIDENTIFIED U.S. ARMY INTERROGATOR: When you shot the guy in front of you, where did you shoot him?
LEAHY: It was in the back of the head. I guess on the back of the head.
BOUDREAU: This is sergeant Leahy's attorney, Frank Spinner.
FRANK SPINNER, MICHAEL LEAHY'S ATTORNEY: As it was, they had to take off their soldier helmet, put on their cop hat, take them to a civilian sort of police station and show evidence that these were people that were shooting at them. And if there wasn't enough evidence, then they were going to be released on the street. And -- but soldiers aren't trained to be cops and they're not trained to collect evidence and they're not trained in the ways of civilian criminal prosecutions.
BOUDREAU: A point even Quantock concedes when pressed.
(on camera): You've talked quite a bit about this training that soldiers have received. We've talked to many, many soldiers who say that the only kind of training that they would get would be, you know, a 15-minute PowerPoint presentation back in the States before they would go out on a battlefield.
QUANTOCK: Yes, that's exactly right. I mean, we don't give them extensive training. We're not trying to teach policemen. But we are trying to teach them enough, whether it's eyewitness statements, whether it's taking photographs. All of those can be used in a -- in a trial. However, we got to catch somebody doing something wrong. We've got to find evidence.
BOUDREAU (voice-over): Once again, Sergeant Michael Leahy.
LEAHY: Seems like even if you do your job and take these guys up to the detainee center, they just come right back, the same (EXPLETIVE DELETED) guys shooting at you.
BOUDREAU (on camera): With all due respect, General, what is the point of having soldiers in Iraq fighting this type of war if they can't take alleged insurgents off the streets?
QUANTOCK: You know, as we look at Iraq, we look at Iraq as a long-term strategic partner of the United States. The sacrifice is well worth it. What we're trying to do is build capacity and capability for not only the Iraqi forces -- the police, the Iraqi Army -- but also stand up the rule of law.
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HARRIS: Jam-packed stores have many retailers hopeful they'll be solidly in the black, but what do the next few months really hold for their bottom line? CNN International business correspondent Maggie Lake takes a look.
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MAGGIE LAKE, CNN CORRESPONDENT: We were here about six months ago in this very spot on 5th Avenue, and you were telling me that we were in the throes of a retail depression. Where does the sector stand now?
BURT FLICKINGER, RETAIL CONSULTANT: Right now, Maggie, we're in a thousand-day retail recession. There are 300 days left. And it's Dickens-esque. It's the best of times for Wall Street people, spending their big bonuses, it's the worst of times for 36 million Americans on food stamps.
LAKE: The holiday season is often make or break for retailers. Are there any bright spots? I mean, they know things are bad. Are they prepared? Or is it going to be an absolute blowout wreck again?
FLICKINGER: It's going to be another train wreck under the Christmas tree. Our strategic resource group forecast is that holiday sales will be down minus 2 to minus 2.9 percent. Industry associations are saying about minus 1. Normally, it's up about 3 to 4 percent.
LAKE: So why -- I'm a little bit confused, though, because we're hearing OK news from the likes of Nordstrom, Saks. I mean, some of the higher-end department stores that were hit so hard actually seem to be doing OK. Are things separating a little bit? Is the luxury consumer coming back a little bit?
FLICKINGER: Maggie, the luxury consumer is coming back with the big bounce in the stock market. So the luxury consumer feels comfortable spending, and the suppliers are fully funding the discounts for the luxury retailers. And they were down last year minus 20 percent or worse. So being down that dramatically last year, (INAUDIBLE) they can do better this year.
LAKE: So it's all relative to the hole they're digging out of.
Burt, when are you going to tell me some good news about retail? FLICKINGER: Three hundred days from now, the end of the retail recession, we're going to see some great, great results, though, from Apple. To your point, Nordstrom's will be good. Kohl's will be good. The better run, more capable, best-capitalized retailers will do well.
LAKE: What about jobs, though? Does the unemployment situation change that? I mean, is it 300 days no matter what, or if jobs -- if the unemployment rate stays stubbornly high, could that be extended?
FLICKINGER: Unemployment stubbornly high -- as we work through that in the first two to three quarters of 2010, we'll go from these dark days to bright lights ahead, bright days ahead both for retail and for the economy.
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HARRIS: And we are pushing forward now with the next hour CNN NEWSROOM with Richard Lui.
