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Fewer Dropouts Equals Richer Cities; Burned Florida Teen Speaks; Where Will Austin, Texas, Bury its Dead?

Aired January 12, 2010 - 14:00   ET

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


KYRA PHILLIPS, CNN ANCHOR: Behind the wheel and behind the deaths of thousands of people, texting while driving. One woman's crusade to make the nation's roads safer and the price she has already paid thanks to a distracted driver.

Plus, a hazmat spill at a North Carolina port has been contained, but the port's still shut down. And people in downtown Morehead City are still being urged to evacuate. A port lift apparently punctured several containers holding PETN, the same explosive linked to the alleged Christmas Day plane bomber.

And the Florida teen viciously burned by neighborhood bullies speaks first person about the horrendous attack. We'll let you know how he's recovering.

We begin with you can't put a price on a good education, but the cost of dropping out is huge, and it's not just the dropouts who suffer. A group called Alliance for Excellent Education finds current U.S. dropout rates are a major drag on local economies, but here's the other side of the coin. Cutting dropout rates, keeping kids in school, could boost salaries, home sales, tax revenues, job growth like nothing else.

Our Susan Lisovicz joining me now from the New York Stock Exchange to dig a little deeper into those numbers and what a difference it could make -- Susan.

SUSAN LISOVICZ, CNN BUSINESS CORRESPONDENT: What a difference, Kyra, is right.

You know, we know that there's a moral imperative to keep our kids in school. We know there's a correlation between dropout rates and crime and demand for social services.

Now we have hard numbers from the Alliance for Excellent Education on the economic argument for keeping kids in school. It used financial software to calculate the economic impact overall, and it's a jaw-dropper, Kyra.

It looks at the class of 2008 which saw 600,000 kids dropout. The study says if that number was cut in half, there would be $4 billion in increased earnings.

All that earnings would result in increased spending and investing, which would be enough to support 30,000 new jobs at a time when we could really use it. And with all those jobs and more spending, there would be higher tax receipts. State and local tax revenue, according to the study, would rise by a half a billion dollars -- Kyra.

PHILLIPS: All right. Well, we talk so much about stimulus measures, but the study shows that just getting a diploma boosts the economy; right?

LISOVICZ: It is an incredible resource that is right there for us. The study's conclusion, Kyra, is that we all have a vested interest in keeping our kids in school, whether we have kids or not, whether we're a car dealer or a realtor, a bank manager. We all benefit from a lower dropout rate.

Right now, there's 7,000 kids estimated that drop out of school every day. The Alliance president says that the report underscores the notion that the best economic stimulus package is a high school diploma -- Kyra.

PHILLIPS: All right. So, then -- so what cities have the potential to add the most jobs if kids actually stay in school?

LISOVICZ: Well, you're looking at it right now, and these are thousands of jobs you're talking about.

L.A., we're talking about 4,700 jobs. New York City, more than 3,000. Miami nearly 2,000. So, these are cities that certainly would benefit, and all the people who live in them would benefit as well -- Kyra.

PHILLIPS: Susan Lisovicz, let's get those kids to stay in school and get those diplomas.

LISOVICZ: You got it.

PHILLIPS: All right.

You might remember 2009 as the year of America's economic meltdown, but it was the exact opposite for the Federal Reserve. The Fed posted a record profit of $52 billion, the biggest in the central bank's 96-year history.

Last year's profit is a 47 percent increase over 2008. The Fed reaping a bunch of extra income from government bonds that it brought to prop up the economy. The best news for taxpayers? Most of that windfall gets funneled back into the U.S. Treasury.

So you need help filing your taxes? Don't bank on the IRS. Personal Finance Editor Gerri Willis, the bearer of bad news and what you should do about it, she's 10 minutes away.

In 19 states, plus the District of Colombia and Guam, texting while driving is against the law. Everywhere else it's just a bad idea and could be your last. Today, the federal government and the independent National Safety Council launched a campaign modeled after MADD, Mothers Against Drunk Driving. It's called FocusDriven and it aims to drive home the dangers of phoning, texting, browsing behind the wheel.

(BEGIN VIDEO CLIP)

JANET FROETSCHER, PRESIDENT, NATIONAL SAFETY COUNCIL: It is a stupid thing to do. You're anywhere from eight times to 23 times more likely to be in an accident if you are texting while you're driving. You're four times more likely to be in an accident, in a crash, if you're on your cell phone while you are driving.

The problem is that we have 270 million people who are cell phone subscribers. And at any given point in time, 12 percent of the people who are on our roadways are on the cell phones or they're texting while they're driving.

JENNIFER SMITH, PRESIDENT, FOCUSDRIVEN: People are just going to have to sit down and evaluate, you know, is this phone call important enough to be my last? Is it important enough to be the last phone call that I take to be responsible for killing someone else's mother or child? You know, you just have to really get your priorities in order and make the right decision.

(END VIDEO CLIP)

PHILLIPS: Well, Jennifer Smith lost her mother in an accident caused by a driver who was talking on a cell phone.

Not sure what that picture is.

His son, one of the most wanted alleged terrorists in the world. There we go. We talk to his father to get his side of the story.

And 19 years ago today, Congress gave the go-ahead to the Persian Gulf War. A mere six and a half weeks later, the first President Bush declared Kuwait liberated from Iraqi invaders.

(COMMERCIAL BREAK)

PHILLIPS: All right. Well, it's a horrific crime that changed one Florida teen's life forever.

Last October, we told you about Michael Brewer and how he was doused with alcohol and set on fire. Three other teens accused in that attack have pleaded not guilty to attempted murder. Now Michael's describing in his own words what happened that day. We're hearing his voice for the first time.

Here's Derek Hayward from CNN affiliate WSVN.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: When he got up to you, what did he say to you?

MICHAEL BREWER, BURN VICTIM: He said, "Nobody is going to hit you."

UNIDENTIFIED MALE: What's your first memory after that?

BREWER: Just cold stuff all over my clothes and all of a sudden I started burning.

DEREK HAYWARD, REPORTER WSVN (voice-over): When detectives were finally able to interview burn victim Michael Brewer, it was six pain- filled weeks after the attack when he was doused with alcohol and set on fire.

BREWER: Somebody poured something on me and lit me on fire. Then I started running.

HAYWARD: Fifteen-year-old Matthew Bent, known as "Zeke," is accused of instigating the attack as revenge over his arrest for trying to steal this bike belonging to Michael's father.

BREWER: He came to my house. He tried to take my dad's bike. He threatened me. He threatened my sister.

HAYWARD (on camera): Three teenagers sit here charged as adults in the adult Broward County Jail. Their videotaped statements are not public record yet, but among all this stuff that is are videotaped statements of some of the many witnesses.

UNIDENTIFIED MALE: It was right around here.

HAYWARD (voice-over): Witness Calvin Kenny walked cops through the entire scenario, describing how Matthew Bent, AKA "Zeke," told Denver Jarvis, AKA "DC," to toss the combustible fluid.

CALVIN KENNY, WITNESS: And Zeke is like, "Yeah, yeah, pour it on him." And he poured it on his back.

UNIDENTIFIED MALE: How many times did he shake it out?

KENNY: He held it for, like, three to five seconds and stopped.

UNIDENTIFIED MALE: Was it a lot?

KENNY: It was, like, soaked his whole, like, back.

HAYWARD: Sixteen-year-old Jesus Mendez is accused of lighting the alcohol as his own little brother watched.

JOELL MENDEZ, WITNESS: Yes. I look back and, all of a sudden, I see these lighter in his hand and the boy just caught on fire.

HAYWARD: The victim dove into this pool as three friends ran to try to help him.

BREWER: This guy comes running up, too. He tries to pull me out of the water. I said, "No, leave me, leave me," because my skin was, like, hanging.

HAYWARD: In Fort Lauderdale, Derek Hayward, 7 News.

(END VIDEOTAPE)

PHILLIPS: And an update on Michael Brewer's recovery now.

He was released from the hospital again last Thursday. He had been readmitted after experiencing breathing problems over the holidays. Michael was previously released a few days before Christmas. He suffered burns over 65 percent of his body and still faces a very long road ahead.

The IRS now with longer waits and less help. A potentially fun tax season shaping up. We've got some filing news that you need to use.

(COMMERCIAL BREAK)

PHILLIPS: Well, taxes are a real trip to the beach as it is; right? So it's nice to know that this year, you can expect longer waits, less help from the IRS.

Good times, right? I don't think so.

Let's talk to our personal finance editor, Gerri Willis, about all this.

So, Gerri, what's this all about and what do we do?

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Well, OK, the National Taxpayer Advocate -- this is the federal official that represents taxpayer interests -- that's us -- they released their annual report on the IRS. Here's what you can expect this coming tax year when you pay your taxes in April.

The IRS expects its staff to answer only 71 percent of calls from taxpayers with issues. In other words, the IRS is planning to be unable to answer about three out of ever 10 calls they get. And the average phone wait time -- get this -- is going to be 12 minutes. So, if you're going to wait to the last minute to make a phone call with a question to the IRS, bad idea.

PHILLIPS: All right. So what are some of the other glitches outlined in the report?

WILLIS: Well, aside from this poor level of customer service, the report criticized the IRS for what it called its excessive use of tax liens. And liens, of course, are claims on property or income if you owe the government money.

Now, the liens are automatic. They're processed by a computer, not by people. This way, people with fewer assets are typically impacted more.

In addition, the IRS' system of paying refunds first and then later verifying your data from employer W-2s and bank and brokerage tax statements, hey, it's just not good for taxpayers, they say. That's because taxpayers may learn later that they owe more in taxes, including interest and penalties. But the report wasn't all bad, though. The report did state that the IRS pulled off what could have been a disastrous tax season. They have dealt effectively with the Making Work Pay credit, and quickly processed claims and amended terms for the first homebuyer tax credit.

For its part, the IRS says that, hey, over the last two filing seasons, they have assisted an unprecedented number of taxpayers through toll-free telephone service, and overall taxpayer satisfaction, they say, remains extremely high. In addition, for the first time, the IRS will require registration, testing and continuing education for all paid tax preparers who sign returns.

So, Kyra, if you're planning on calling the IRS this year to have a little conversation about your tax forms, not so much.

(LAUGHTER)

PHILLIPS: I've already dealt with that nightmare. Hopefully it won't happen again.

Thanks, Gerri.

WILLIS: Wow. That's impressive. Yes, good.

PHILLIPS: You've got to MoveOn.org; right?

Thanks, Gerri.

Well, how many reward points have you earned on your American Express card? You know, you can use them to pay your federal, state and local income taxes. Did you know that? You just have to visit Pay1040.com or OfficialPayments.com.

But we need to point this out. If your tax bills say $5,000 and you want to use your points to pay it off, well, you'd need to charge $1 million on the plastic. That's some spastic plastic.

And speaking of that, you did learn about a guy who racked up 20 million AMEX reward points, and he won't be taxes with them, though. He might be paying the people he allegedly swindled.

These are "What The...?" outrage story of the hour. That's coming up at 53 after.

Austin, Texas, live music capital of the world, it's looking for money and ideas for a rather morbid problem -- where to bury its future dead. The city is running out of cemetery space.

Here's Matt Flener with our affiliate KXAN.

(BEGIN VIDEOTAPE)

CONNIE WENDT, TOURIST: I think it's very peaceful.

MATT FLENER, REPORTER, KXAN (voice-over): Connie Wendt chose to pass the time Monday on a walking tour of Austin's past. WENDT: You know, it really would be kind of an honor to be buried in this location, I would say.

FLENER: This is the Oakwood Cemetery with plots dating back to the 1800s. But those markers have reached the fence line here and elsewhere, with more people driving into town every day.

(on camera): Three of the city's five cemeteries are already filled up, and there's one more that's just a couple of years away.

(voice-over): Evergreen Cemetery in east Austin has just a few green pastures left.

CORA WRIGHT, AUSTIN PARKS AND RECREATION: If we don't start to look at some alternatives, we may run out of space at that site.

FLENER: The city only has one more cemetery to fill the void for another decade or so and needs to find more space or money to pay for repairs at the old ones.

WRIGHT: The two that are still active are those cemeteries that generate revenues.

FLENER: Austin Parks officials say they're also looking at other towns for ideas on how to stay in the black.

WRIGHT: We want to make sure that (AUDIO GAP), we're also providing the best service that we can for the dollars.

WENDT: There is no empty space almost.

FLENER: For a tourist looking into Austin's history...

WENDT: You would hope that they would try to, you know, come up with fundraising ideas.

FLENER: ... that's one way to pay for more room for a stone-cold reality not slowing down anytime soon.

WENDT: It's just sad to think that they are running out of space.

(END VIDEOTAPE)

PHILLIPS: That was Matt Flener reporting from Austin, Texas.

The city council is now debating whether to green-light a study on how to push forward. That study alone will cost $24,000.

(NEWSBREAK)

PHILLIPS: Still too early to tell just how much the record- breaking has cost Florida farmers, but Martin Savidge got a very personal account from a fish farmer who says the freeze is costing him his life savings.

(BEGIN VIDEOTAPE)

MICHAEL BREEN, FISH FARMER: This is a devastating loss. This is a total loss.

MARTIN SAVIDGE, CNN CORRESPONDENT (voice-over): Forty-three- year-old Michael Breen surveys his farm. Seventy-six ponds of 26 varieties of Central and South American fish with names most kids would know from the pet store -- Cichlids, Silver Dollars, Tetris and Barbs -- 125,000 of them.

BREEN: We bought the farm because I love fish. And in this day in age, how many people can honestly say they raised their children on a farm.

SAVIDGE: Fourteen years ago, Breen left a six-figure salary in alcohol sales to pursue a dream. That dream died in just four frigid nights, wiping out almost his entire stock valued at over half a million dollars.

BREEN: To walk by these ponds now and not see anything or hear anything, it's just kind of an eerie silence.

SAVIDGE: Breen says there was nothing he could do. He had no way to move so many fish and no place to put them out of the cold, even if he could. Insurance?

BREEN: Not this year I couldn't afford it.

SAVIDGE: Breen's seen cold before. One snap last year forced him to use all of his savings. But he and the industry have never seen anything like this.

BREEN: It's just been a slow death out here.

SAVIDGE: Now, he has nothing left in the ponds or the bank.

BREEN: I've given everything. My 401(k) from the liquor industry, my retirements over there. Yes, I've put everything into this farm.

SAVIDGE: Including your heart.

BREEN: Oh, yes. A lot of blood, sweat and tears.

SAVIDGE: Breen has not yet explained to his children what the cold has done to their lives, but that conversation is coming.

BREEN: They realize that things are going to be very hard, very hard. They're fantastic. I'm blessed.

SAVIDGE: And that is the realization he has found in the midst of everything he has lost.

Martin Savidge, CNN, Loxahatchee Groves, Florida.

(END VIDEOTAPE) PHILLIPS: Well, it's not exactly a heat wave, but it sure beats what most of us have been going through. And we're going to find out when the January thaw will hopefully begin.

(COMMERCIAL BREAK)

(WEATHER REPORT)

PHILLIPS: Deadly routine south of the border. Drug war murders soar in Juarez, and the first month of the new year isn't even over.

(COMMERCIAL BREAK)

PHILLIPS: Captured. A DEA source tells us that one of Mexico's most violent drug traffickers was nabbed today on the Baja California peninsula. U.S. and Mexican officials say the man now behind bars is alleged one of Tijuana's top drug kingpins. Teodoro Garcia Simental. He's been blamed for many of the beheaded bodies found in Tijuana. Garcia is the second drug lord taken down in less than a month by Mexico.

No doubt about it, the captures are good for the U.S. and Mexico, but one battle in the drug war has started off the new year just like it ended the old one, soaring drug-related murders. CNN's Rafael Romo has the latest on the bloodletting in Juarez.

(BEGIN VIDEOTAPE)

RAFAEL ROMO, CNN SENIOR LATIN AMERICAN AFFAIRS EDITOR (voice- over): It is the kind of statistic no government would be proud of. Sixty-nine people were killed in drug-related violence in Mexico in a single 24-hour period. About one-third of the victims died in Ciudad Juarez, a border city across from El Paso, Texas.

Ciudad Juarez is by far the most violent city in Mexico. According to officials more than 2,600 people died last year in the city alone, and barely two weeks into the first months of 2010, the death toll is fast approaching 100.

President Felipe Calderon declared war on drug cartels three years ago when he took office. And so far in the presidency, more than 15,000 people have died in this war. Calderon says that his commitment to fight the cartels hasn't changed.

FELIPE CALDERON, PRESIDENT OF MEXICO (via translator): I know that in many parts of Mexico, criminals continue to harass, threaten and practice extortion against many Mexican families. For that reason, we will continue to combat all criminal groups in the country without distinction.

ROMO: Last year, Calderon ordered the deployment of nearly 50,000 troops especially to areas like Ciudad Juarez, but the violence has not stopped. The bodies of two women were found in a vacant lot in Ciudad Juarez last Friday. The same day, a body of a man was discovered on a dirt road in the outskirts of the border. Last month, 33-year-old Bobby Salcedo, a high school vice principal from California, who was visiting with his Mexican wife also fell victim to the violence. He was kidnapped from a restaurant, along with five other men. They were all found dead the following day.

BETSY SALCEDO, WIDOW: The next day, we were told that they were found together.

ROMO: His widow, who has since returned to California, is stoic in the face of tragedy.

Most victims are people involved with drug cartels fighting among themselves. Recently, however, journalists covering the police beat have become targets. The body of a reporter was found last week alongside a note that said, "This is going to happen to those who don't understand that the message is for everyone."

Rafael Romo, CNN, Atlanta.

(END VIDEOTAPE)

PHILLIPS: We are getting new information now about the suicide bomber who killed seven CIA officers in Afghanistan. We are being told that a former intelligence source is telling us now that the Jordanian double agent was about to be searched by two security contractors when he set off the bomb. The two American guards had approached the sedan where the bomber was sitting -- that is not the bomber, of course. We apologize for that.

After he had been waved through the normal security checkpoints on a military base, and that is when Kahlil al-Balawi blew himself up.

Deception all over the place in the war against terror. What you see may not be what you think you can see. A case in point, Gitmo. U.S. prison in Cuba. Our Brian Todd now with Gitmo pictures you have probably never seen before.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice-over): He looks serene and thoughtful as he kneels in prayer -- this photograph, previously obtained by CNN, is of alleged 9/11 mastermind, Khalid Sheikh Mohammed, at the detention facility at Guantanamo Bay -- a sharp contrast from the image of his capture in Pakistan a few years earlier.

This is one of several photographs just printed by the "Miami Herald" of current and former detainees at Guantanamo. "The Herald" got the photos from families of the detainees. They were taken by the International Community of the Red Cross.

Some of these men are smiling, but it's not clear why.

Al Qaeda analyst Jarret Brachman, who helped CNN obtain some of the photographs from an Arabic Web site, says this is another example of the complexity of the war on terror.

JARRET BRACHMAN, AUTHOR, "GLOBAL JIHADISM": I think the hard part here is that they all kind of look like pious Muslims, some of whom were picked up for, you know, being in the wrong place at the wrong time; others planned 9/11. And so trying to figure out who is really bad, you know, among them and who -- who's not, it is very complicated. And that's precisely Al Qaeda's goal.

TODD: Another photo posted by "The Herald" which CNN had obtained from the Arabic Web site is of Khalid Sheikh Mohammed's nephew, Amar al-Baluchi (ph), holding up the Koran.

"The Herald" released these images to coincide with the eighth anniversary of the detention center's opening.

UNIDENTIFIED MALE: Detainees down!

TODD: That, along with this protest at the White House by a group representing current detainees, illustrates the political dilemma for the White House as it tries to close Guantanamo.

An attorney for one detainee, whose transfer back to Yemen was halted by the Obama administration, says the White House should have been working harder to reintegrate these men back in their home countries if it was concerned about security.

PARDISS KEBRIAEI, ATTORNEY FOR YEMENI DETAINEE: The energy should go toward providing support services, providing compensation, providing a framework that would allow people who are being returned to reintegrate successfully. Certainly, that's needed. These men have been through eight years of trauma.

TODD: (on camera): And that takes time to set up, right?

KEBRIAEI: That -- the administration has had a year to look at these cases.

TODD: And an administration official told us the president is as committed now as he's ever been to closing Guantanamo. But White House officials also say they have to continue their review of each case to determine the security risks and how these detainees will be dealt with once they are transferred.

Brian Todd, CNN, Washington.

(END VIDEOTAPE)

PHILLIPS: Five hundred and eight-three home runs, one bombshell. Well, really a bombshell? Mark McGwire's admission to baseball's asterisk club. Your thoughts on his juicy story.

(COMMERCIAL BREAK)

PHILLIPS: Mark McGwire's career, brought to you by steroids. You probably heard it by now. McGwire admits he was juicing in his playing days, including the year he broke Roger Maris's single-season home run record. McGwire came clean, because he's getting back into the game as a hitting coach for his old team, the Cards.

Here's what some of you are saying about it now. Mike Cooper says, "McGwire is a blubbering idiot who can't un-hit the home runs. He has no record and does not deserve the Hall of Fame. He deserves a felony charge."

J.L. Hamilton writes, "I think the homerun record should be reversed. Home runs take a lot of power, and steroids would have aided his ability to hit that many.

Randi writes, "Records are supposed to be about the accomplishments of people, unassisted. Bye-bye homerun record."

You can tweet us anytime at KyraCNN.

Jose Canseco -- been there, admitted that. He's on "LARRY KING LIVE" tonight. Guarantee Canseco's got a lot to say. You may remember in his book that he says he introduced McGwire to steroids. "LARRY KING LIVE" is on tonight 9:00 Eastern only on CNN.

Top stories now.

New Jersey is poised to become the 14th state where medical marijuana is legal. State lawmakers approved a bill yesterday, now it is waiting on Governor Jon Corzine's signature. He says he will sign it before he leaves office next week. The new bill would allow patients to purchase up to 2 ounces of pot a month from state- authorized dealers.

Call it a new tool in the war on terror and it's going to work at Logan Airport in Boston. The facility is getting a new bomb-disarming robot called a land shark. It is expected to be unveiled today. That robot is inspired by and dedicated to all of the troops who have died fighting the war on terror.

And if you are flying anywhere on Delta today, you are going to have to dig a little deeper into your wallet. The airline is jacking up fees for checked baggage. Now the first bag will cost you $25 and $35 for the second. You can save a couple of bucks if you pay in advance online. Continental Airlines matching Delta's fee hike as well.

What can he say? What should he is say? What does Harry Reid's comment about a former fellow senator say about all of us? The conversation goes on.

(COMMERCIAL BREAK)

PHILLIPS: Harry Reid on the record next hour in Nevada. For the second time in two days, the Senate majority leader is scheduled to face reporters. Today's topic, security at McCarran airport in Las Vegas, but don't be surprised if Reid talks again about his controversial references to Barack Obama's skin color and dialect in 2008.

Reid has apologized, President Obama has accepted, but any time race meets politics sparks fly. I want to play you a chunk from last night's "LARRY KING LIVE" hosted by Soledad O'Brien. You'll hear from actress and commentator Nancy Giles and correspondent Jeff Johnson of BET.

(BEGIN VIDEO CLIP)

NANCY GILES, ACTRESS & SOCIAL COMMENTATOR: Man, you know, I'm embarrassed for Harry Reid. I -- I guess the first thing I would say was, Harry, how many black people do you know, OK, because there's not one Negro dialect. And this is something that's been sort of the bane of my existence for a long time, because I've never heard anybody call for one single white dialect. I mean, people are people. There are different kinds of ways of talking.

And, you know, it just -- it blows my mind and it's very sad to see what lies just below the surface of someone that one would think, as a Democrat, you know, might be a little more liberal-minded. It's just more proof at how having the first black president is blowing people's minds.

SOLEDAD O'BRIEN, CNN SPECIAL CORRESPONDENT: Jeff Johnson, is it racist?

JEFF JOHNSON, BET NEWS CORRESPONDENT: No. I -- I think that it was -- I think that it was in bad taste. But there were a whole lot of black folks that said that. There were black folks that said that he was a respectable black guy. There were black people that said, is he black enough?

And so I think that this was an accurate statement. He is light- skinned. He was a "safe" black person. He was a break from what we saw normally, from the activism of a Jesse Jackson or the activism of an Al Sharpton running for president. And so he was that safe Negro.

And so I think that, to put it in context...

GILES: I really have a problem with that.

JOHNSON: I mean it -- have a problem or not, we heard black folks -- you and I both know...

GILES: No, I'm not saying that they didn't say it, but I...

JOHNSON: We...

GILES: ...I have a problem with that whole concept. I'm sorry, but you go ahead.

JOHNSON: No, no, I...

O'BRIEN: The concept of somebody is safe or somebody is not?

GILES: Yes. Yes.

JOHNSON: You know, I -- I agree. I agree. I think...

GILES: These different levels of authenticity, you know what I mean?

JOHNSON: I think that loving Oprah and hating Condoleezza Rice is a problem. I think that -- that judging somebody's level of blackness is a problem. But Harry Reid was not alone in his assertion...

(END VIDEO CLIP)

PHILLIPS: Well, when it comes to Reid's remarks, some of you are saying move on already. Others saying, not so fast. Here is CNN White House correspondent Suzanne Malveaux.

(BEGIN VIDEOTAPE)

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT (voice-over): Some want the president to step into the controversy.

MICHAEL ERIC DYSON, GEORGETOWN UNIVERSITY: We can't have an open, honest, real discussion about race in this country. And I think this is quite frankly one of the failures of our new president. He's a remarkable man, he's an insightful man, but I think he's loathe to speak about race.

MALVEAUX: He avoided the issue throughout the campaign until he was forced to address it after his pastor made racial remarks. In July as president, Mr. Obama tried to cool off a hot confrontation between a black professor and white police officer.

DONNA BRAZILE, DEMOCRATIC STRATEGIST: President Obama clearly cannot have a beer summit every time there is problems or the issue of race come up, as he did last year when the situation involving Professor Gates and Officer Crowley.

MALVEAUX: But could this be another teachable moment?

DYSON: We don't expect Mr. Obama to speak to this issue of race because he's a black man. We expect him to speak to the issue of race because he's the president. We have a teachable moment here, but the professor will not come to the classroom.

MALVEAUX (on camera): Many believe that President Obama is uniquely suited to take on the issue of race, being biracial, a strong communicator and having the bully pulpit of the presidency. But many Americans still struggle to have an open and honest dialogue about race.

(voice-over): Black leaders say sure, Senator Reid's comments were offensive, to call Mr. Obama appealing for being light skinned with no Negro dialect but they also say he's speaking the hard truth.

DYSON: 99 percent of people in this country who heard that probably readily understood what he meant. And the question is how can we get beyond some of this vicious epithet and name calling and get to some of the deeper issues.

MALVEAUX: Deeper issues like the reality that light-skinned blacks are sometimes favored.

BRAZILE: I come from a very large family. I'm darker. My skin is - my tone, my complexion is much darker than some of my siblings. And yet as a child growing up in the segregated deep south, we often talked about whether or not we could succeed, given the complexion of our skin.

MALVEAUX: And how one speaks.

DYSON: We know what Harry Reid meant. He doesn't have the typical intonations of African-American culture but a lot of black people don't do that. They get accused of sounding white.

MALVEAUX: The problem some believe is Americans still either cannot or do not want to talk about race.

BRAZILE: We don't have the common language to discuss issues, especially issues like racism and the sensitivity around discussing race. And because of that, people often, you know, trip over themselves.

DYSON: This is Mr. Obama's Achilles heel as well. And I think we need to call him on this.

MALVEAUX (on camera): And just a little tidbit -- it was the first lady, Michelle Obama, and a group of close friends that gave the president a little bit of a nudge to get involved in the racial incident that led up to the beer summit in July. The general feeling now is that Senator Reid's comments are generating a little less heat.

Suzanne Malveaux, CNN, the White House.

(END VIDEOTAPE)

PHILLIPS: Ah, the many uses of American Express reward points. One alleged swindler probably won't need them in prison, so how about giving them to the victims? And I bet you can't guess how many points he has.

(COMMERCIAL BREAK)

PHILLIPS: Sanchez is off. Team T.J. today.

HOLMES: Not quite.

PHILLIPS: Not quite?

HOLMES: No, not Team T.J. I can't get anybody on board Team T.J. just yet.

PHILLIPS: Why, what's wrong?

HOLMES: I don't know. Nobody wants to seem to be on Team T.J. People are trying to leaf Team T.J. in some instances.

PHILLIPS: Do they not like what you want to talk about or what you want to cover?

HOLMES: Maybe that's it. But, today I've got a good one for you. I'm actually excited today. We've got Dr. Harry Edwards on. A lot of you might not know the name but this is a renowned sports sociologist, who some 25 years ago predicted we were going to have a pervasive culture of drug use in professional sports. And Kyra, turns out he was right. He's going to be on with us. He has a wealth of knowledge, excited to talk about him.

Also, the United States is being accused of murder. We'll tell you who's accusing the U.S. and who the U.S. is accused of killing. Also, Kyra, you know we've heard the word "Negro" an awful lot in the past few days. Well, coming up in the 3:00 hour, you're going to hear it again -- a lot. And the guy who's saying it over and over is actually trying to be funny. And actually, Kyra, you might laugh. That's all coming up at 3:00.

Team T.J., trying back here. We're trying back here.

(APPLAUSE) PHILLIPS: Aww, everybody is supporting you, everyone is clapping. It is nice to have a break from that Rick Sanchez, isn't that right, Angie Massey (ph)? Raise your hands over there.

HOLMES: No, she likes her job. She's not raising her hand right now.

PHILLIPS: She's going to be politically correct -- what'd she say?

HOLMES: She's not raising her hand because she likes her job, OK? You can't cross Team Rick.

PHILLIPS: Hey, you and I have -- oh, isn't that the truth. Oh, OK I have another question for you but now I'm getting the big wrap. We're probably getting in trouble. All right.

HOLMES: OK, sorry.

PHILLIPS: All right. We all love our job. We love you, T.J.

HOLMES: Love you, too. See you soon.

PHILLIPS: All right. There are probably some people in Florida thinking, what the heck was I thinking even investing with this guy, especially when you see this picture. Behold Scott Rothstein. Yes, here he is during happier times. Apparently he has a thing for watches, which is good because he's probably going to have a lot of time to watch the hands move now. Rothstein -- kind of like a mini- Madoff. Later this month he reportedly will plead guilty to running a Ponzi scheme, swindling investors out of more than $1 million.

Now, this part's the stunner. This guy actually racked up nearly 21 million points on his American Express card. So, how do you do that? Was it the watches? The golden toilet seats? The boats? The cars? The women? All right. I don't know about the women. Who knows. The Feds are looking to use some of the points to actually pay back some of the alleged victims. All right. Who gets the toilet seat by the way?

A dad's fight for his son. He's an all-American boy, his dad insists? Or, is he a top al Qaeda agent hiding out in Yemen?

(COMMERCIAL BREAK)

PHILLIPS: Two sides of an alleged terrorist. To the U.S., he's one of the top al Qaeda operatives in Yemen. To his father, he's an all-American son. Who's right?

Paula Newton travelled to Yemen.

PAULA NEWTON, CNN INTERNATIONAL SECURITY CORRESPONDENT (voice- over): This man, Anwar al-Awlaki, an American born Muslim cleric is one of the most wanted fugitives.

Counter terror forces in Yemen are training to track him down, though he is hiding somewhere up there, in the rugged mountains of southern Yemen.

In the capital of Sana'a, we went looking for his family to learn more about the man who praised the alleged Fort Hood shooter and may have encouraged the bombing attempt on the Christmas flight to Detroit.

His father, a former government minister here, says the west is mistaken that his son is not the new Osama bin Laden.

(on camera): For al-Awlaki's father, Nasser al-Awlaki, has agreed to an interview but he said this is only courtesy and he doesn't want any cameras. But we're about to go to a neutral location just around the corner from here in the capital Sana'a.

Let's see what he has to say.

(voice-over): Al-Awlaki's father told me his son is not a member of al Qaeda. He says, "He has been wrongly accused. It's unbelievable. He lived his life in America. He's an all-American boy. My son would love to go back to America. He used to have a good life in America."

(on camera): And yet an American security official tells CNN that al-Awlaki did meet with the man accused of trying to blow up that airliner to Detroit on Christmas day. This officials believes that al-Awlaki is one of the top leaders here of Al Qaeda in Yemen, one of only five, and that he sometimes last year transformed himself from an Internet preacher to a hands-on operative who not only recruits, but also helps plan attacks on the United States.

UNIDENTIFIED MALE (voice-over): All of that, of course, is not what his father wants to believe. He told me, "What do you expect my son to do? There are missiles raining down on the village. He has to hide. But he is not in hiding with al Qaeda. Our tribe is protecting him now." This man is a journalists from Yemen. He is the last reporter to speak with al-Awlaki before he went into hiding with this tribe.

The tribe issued a statement saying if anybody touches on hair on al-Awlaki's head, the tribe will respond to a force.

NEWTON: And that means even with the most aggressive manhunt, al-Awlaki may be as well protected right now as Osama bin Laden.

(on camera): No matter how effective the counterterrorism forces, no matter how good the training, much of this really won't matter in the tribal regions, which the government has little or no control over.

His father holds some hope that he can convince his son to surrender without more bloodshed but he needs time, he says. He claims he hasn't spoken to him in weeks, the son who he says has always loved America.

Paula Newton, CNN, Sana'a, Yemen.

(END VIDEOTAPE)

PHILLIPS: That does it for us. I'm Kyra Phillips. We'll see you here tomorrow. T.J. Holmes, in for Rick Sanchez, he takes it from here.