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American Morning

Bracing for Floods & Tornadoes; Wall Street Reform Woes; Luring LeBron; Chicago's Bloody Year: 209 Homicides; Arizona Residents Speak about Illegal Immigration; USA Soccer Coach Reflects on World Cup

Aired July 01, 2010 - 08:00   ET

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


KIRAN CHETRY, CNN ANCHOR: Well, we are coming up on the 8:00 hour right now. It's time for a look at our top stories this morning.

And we've been talking about Hurricane Alex, now made been into a tropical storm. Bonnie Schneider is tracking that for us. And we're also going to be talking a little bit more about what's going on and how it's disrupting the oil spill cleanup.

But we're going to take a quick break and we'll be right back.

(COMMERCIAL BREAK)

JOHN ROBERTS, CNN ANCHOR: Good morning. Thanks so much for joining us on the Most News of the Morning on this Thursday, the first day of July. We've got the Fourth of July coming up here. It's America's birthday. It's Canada's birthday today.

So, happy birthday to everyone in Canada who's watching this morning.

CHETRY: So nice we're born so close together.

ROBERTS: Britney Spears she says -- said once, she says, "I like to visit overseas countries, like Canada."

I'm John Roberts. Good morning to you.

CHETRY: I'm Kiran Chetry. We have a lot to talk about this morning, so let right to it.

We start in south Texas, still being pounded by Alex this morning. Alex downgraded to a tropical storm. But that does not mean that it's not still something to really watch out for as our Bonnie Schneider has been telling us this morning.

The worry, though, is this violent storm could cause even more destruction in the way of flooding as well as mudslides, tornadoes, and also, disrupting the oil spill cleanup hundreds of miles away for days.

ROBERTS: Taking on Wall Street. Democrats say the new financial reform bill will prevent Wall Street from taking the economy over a cliff. But does it really address what some say is at the heart of today's financial crisis? CHETRY: And Team USA back this morning -- back home, that is -- after their World Cup success in South Africa. The games were a must- see from any sports fans. Does this mean a turning point for soccer in America?

U.S. soccer coach, Bob Bradley, will be joining us in the studio later this hour.

ROBERTS: And, of course, the amFIX fix blog is up and running, as it is every day. Join the live conversation going on right now at CNN.com/amFIX.

CHETRY: And we begin the hour with Alex, now a tropical storm, but still unleashing its furry across southern Texas and northern Mexico. Thousands are still taking cover and the fear now is of flooding, mudslides and tornadoes.

Alex has caused at least one death so far in Monterrey, Mexico. Officials in one Mexican state have also issued a red alert. Shelters are open now to protect people in the mountainous regions.

For more on this, we bring in Reynolds Wolf on South Padre Island in Texas.

Even though we're talking about the downgrade that has to do with the winds -- I mean, the rain, the flooding threats are still there.

REYNOLDS WOLF, AMS METEOROLOGIST: Oh, there's no question about it -- especially back in parts of Mexico where that area of low pressure, that tropical storm, is going to go into higher elevations. And when it does, it does what we refer to it as orographic lift where it's going to actually squeeze some of moisture out of what's left in tropical storm Alex. And that could give us heavy rainfall, possibly mudslides.

Bonnie Schneider is going to tell you about that, coming up in just a few moments.

But here, the big story right now is not the rain. It is the wind and it's also the waves. Take a look at the shot over here. As far as the eye can see, white caps. They're coming in. We see a couple of six-foot waves. But some bigger ones, 10-footers will be way, way out. They'll come in and crash on the shore.

The beach is a little bigger than it was. We have water that was coming right up against this dune a few hours ago. That certainly is not the case now. And, certainly, as this storm goes inland, conditions will get better.

This island was spared. We're very fortunate. The situation could have been far worse. It could have intensified. Before it made landfall, possibly could have been a major hurricane in, I'd say, another day or perhaps even a few more hours out in the Gulf of Mexico. Thankfully, that wasn't the situation. The storm did pass 100 miles south at this location. But we have had some power outages. New information that just came in, too -- there's one main bridge that goes from South Padre Island back to the mainland. With winds topping 39 miles an hour, the bridge was shut off.

Well, last night we had a couple of posts, some light posts, that actually were knocked over and the wind, they're laying across the bridge. So no one is getting off the island for now.

As soon as the winds drop, they have to have crews go out and clean up that mess, then after they get out there and clean up the mess, only then can people get across. But, of course, they need to wait for the winds to stop.

Flooding is an issue in parts of Brownsville and certainly some flooding here. We have water in some places that got well over a foot. Back in Brownsville a different situation. But, certainly, it could have been, as I mentioned, much worse.

Let's toss it back to you in the studio.

ROBERTS: Reynolds Wolf for us in South Padre Island this morning -- Reynolds, thanks so much.

Of course, Alex may have made landfall but the storm is far from over. Bonnie Schneider is tracking all of the latest forecast and advisories for Alex. She's in our hurricane headquarter.

Good morning, Bonnie.

BONNIE SCHNEIDER, AMS METEOROLOGIST: Good morning, John and Kiran.

Reynolds was talking about how we are very lucky. This could have been major hurricane as a category three with winds above 111 miles per hour. Now, it came close. Alex really slammed into Mexico as a category two with winds at 105. So, very close -- evident here by the eye you can see forming and then closing when this storm comes onshore. It loses a little intensity.

But it sure did wind uptight before it slammed in that coastline. And notice the distance from the oil slick here on this map -- just to show you how far to the south and west it did go. There will certainly con to get influence of southeasterly winds working their way across Louisiana and not good news for the coastal region here because we continue to see the oil come onshore when you have such intense winds.

We're also watching thunderstorms, rolling on in with the persistent easterly wind, hammering the Texas coastline. This is why we still have flood watches in place. And they will persist straight into the evening hours for a good portion of Texas, all the way back out to coastal Mississippi.

John and Kiran, the flood threat continues. As well as the risk for tornadoes, even though there is no tornado watch right now.

CHETRY: All right. Bonnie Schneider, keeping track of all of it for us -- thanks so much.

Another problem is that Alex could shut down cleanup efforts for the Gulf oil spill for days, possibly through the weekend. The huge storm picked up high seas 600 miles away from where it made landfall. And that forced 500 oil skimming boats from Louisiana to the Florida Panhandle back to shore.

ROBERTS: The waves also forced BP to push back the use of another ship that could double the amount of oil that it's capturing with the system of underwater containment domes and pipes. But if there's any good news, the company says the waves from Alex have not disrupted the drilling of those relief wells.

CHETRY: Well, still ahead: the Wall Street overhaul. Enron whistleblower Sherron Watkins is going to join us. There were a lot of changes made, legislation, in the wake of the Enron scandal. Now, we're seeing financial regulation reform come forward again after the 2008 near collapse. But will it make a difference? And is it the right legislation?

Eight minutes past the hour.

(COMMERCIAL BREAK)

(MUSIC)

CHETRY: Eleven minutes past the hour.

After a rollercoaster ride where we saw the near collapse of our financial system, regulatory reform for the finance industry is one step closer to reality this morning, the House passing its version of the legislation last night -- mostly along party lines. Democrats are saying it is critical to curb Wall Street abuses. My next guest, though, says it does little to stop what's really at the heart of the economic meltdown and that is the way that top executives in these firms are compensated.

Sherron Watkins joins me now. She was the Enron whistleblower, warning of an elaborate accounting hoax. She is now a contributor at "The Daily Beast."

Thanks so much for being with us this morning.

We thought it was interesting to get your perspective since you saw this firsthand when we dealt with the last meltdown in the market. Why do you see executives' salaries, though, are at the heart of Enron's meltdown and also can be compared to what happened in this recent Wall Street collapse?

SHERRON WATKINS, THE DAILY BEAST: Well, Enron was -- used the stock options as a compensation tool to a great degree. And many people have complained that the level of risk taking within Lehman and Merrill Lynch and Bear Stearns expanded once those Wall Street firms went public, became publicly traded entities.

My primary concern or -- sometimes the unintended consequences to financial reform, specifically the 1993 tax law that made salaries above $1 million nondeductible, and that has had large unintended consequences --

CHETRY: Right.

WATKINS: -- for our capitalist system.

CHETRY: So, explain that. I mean, because when you hear about that, you hear that people make a certain amount of money as their salary. Usually, it is, as you said, under $1 million. And then they have stock options, bonuses, all of that which is sort of what drives -- it's the fire that drives Wall Street.

What has unfortunately happened because of that, in your opinion?

WATKINS: Well, in 1980, the statistic is that CEOs on average made 42 times the average hourly worker. By 1990, that was in the 80s, like 85 times. And people were concerned that CEO pay was getting out of hand.

So, this 1993 tax law said that salaries above $1 million cannot be deducted. Well, if you're a CEO and you're making $3 million, well, now, there's a shortfall of two and it has to be made up and it's made up in fixed-price stock options. And we saw the expanded use of stock options in the '90s.

And what it did is it really disconnected the long-term interests of the company and the CEO. By the end of the '90s, by the year 2000, CEOs on average made 531 times the average hourly worker. And the decade of the 2000s, it has not gone down.

CHETRY: Right. And so, this is an example, though, of when lawmakers get their hands on something, change it, and Wall Street finds a way around it. So, in this case, they solved their problem and continued making money by going with the bonus route and going the route of stock options.

So, when you talk about legislation that's passed, some people say does not have enough teeth in it in the first police, are they just going to find a way around it, find a way to keep making money?

WATKINS: Yes. I think you -- what you got to do is remove the use of stock options. Academic research shows that fixed price stock options incentivize -- gamble the company behavior. And that's what you saw.

And the problem is, you know, Merrill Lynch is effectively went bankrupt and had to be purchased by Bank of America. Yet, Stan O'Neal, CEO at the helm of most of the activity, I think he walked away with $124 million.

CHETRY: That's the golden parachute that people are complaining about as well.

WATKINS: Well, it's not even just golden parachutes. It was stock options he exercised on the way up. Jeff Skilling, Enron's CEO, effectively bankrupted Enron. Yet in the last two years of Enron's existence, he sold $89 million worth of stock option.

CHETRY: I want to ask about this though. There are provisions about executive pay in this current legislation, at least in the house. Share holders have the right to cast non binding votes on pay tax just for CEOs and other executives. The fed -- I hear you laughing. The fed could set standards on executive compensation if it seems it is unjust or unsound practices for the bank.

Won't that help?

WATKINS: Shareholder access on a limited basis is just a figure leaf. It is sort of like throwing someone a dead tired bone with no meat it. The best suggestion I have ever heard and I think it is brilliant is cash-only compensation to the top five executives. The C-class executives. Just -- repeal that tax law. If they are worth $8 million, pay them $8 million and let it be deductible. But no stock options for the top five guys. And that really is simple regulation. It is very cost-effective. And I think it takes the root causes of the risky behavior out of the equation.

CHETRY: That is not something that's in the current legislation. There's also been some complaints that if you put all of these ideas and put all of these in some cases impediments on the company making money that are -- publicly traded, that the private companies will get ahead and it will encourage other companies to leave our country. What do you say to that?

WATKINS: I think that's a tired old argument. We have just had one of the greatest depression since the Great Depression. I mean, it was what is it -- almost an $800 billion bailout? It is time to take a fresh look. We need to make sure our capital system has just the right level of regulation to prevent meltdowns. But it has got to be smart. And I'm -- just not quite certain this -- this reform gets to the root causes.

CHETRY: And as we know the -- banking industry spent $600 million in lobbying efforts and the senate version still is has not passed yet. So we will have to wait and see on that one. But an interesting perspective today from Sharon Watkins, the Enron whistle blower, a contributor with "The Daily Beast," thanks so much.

WATKINS: Thank you.

ROBERTS: So are you tired of paying those airline fees force checked baggage? It can add up to a lot of money. Well here is the potential solution where you may not even have to bring your bag to the airport anymore. We will tell you about that coming right up.

CHETRY: And still ahead, we are also going to be joined by team USA head coach, Bob Bradley. Soccer fever in America. More people watch the World Cup game than we have seen in the U.S. ever. So is soccer catching on? Eighteen minutes past the hour.

(COMMERCIAL BREAK) ROBERTS: We are back with the Most News of the Morning. It is 20 minutes after the hour. And the day some NBA teams, New York Knicks have literally been waiting years for is finally here. The league's free agency period began at 12:01 this morning. So let the bidding begin. Leading the charge, of course, King James, LeBron James, crown jewel, in a bumper crop of free agents. So where will he go? The New Jersey Nets, the New York Knicks? Two of the teams wanting to lure LeBron. And there were reports that he was maybe looking around for some property down in the village Soho area.

CHETRY: everyone in New York is praying and praying, willing to rename the Bronx, LeBronx if he comes here. But he could stay in Cleveland. You don't think so?

ROBERTS: I think the money viding on New York, so we'll see.

CHETRY: We'll see. There is sure a lot of -

ROBERTS: He could stay -

CHETRY: If that happens, Chicago is not out of the mix either, right?

ROBERTS: Yes I think they are a lot of teams that want him badly.

CHETRY: There you go. Well "Minding Your Business" this morning, if you are tired of paying those high baggage fees every time you head on vacation or on a work related trip, UPS has a solution. It is rolling out a new luggage box where you can ship right to your hotel, the packages are reusable and shipping costs start at $13. That's better than the $25 baggage fee,

ROBERTS: It is but the caveat there is it starts at $13.

CHETRY: How much can you fit in there?

ROBERTS: Yes and how high is it going to go? No need to check your luggage when you are flying yourself in your car. Got a trunk there, right? That's right. We are talking about a transition. It is if first flying car that with FAA approval is one step closer to becoming reality. Turns vehicle to aircraft in 30 seconds. It has a convertible , that's the time it takes to put the top off or down.

CHETRY: Yes.

ROBERTS: Manufacturers says it cruises 100 miles per hour in the hour, does about 70 on the ground. However, the cost is going to be prohibitive for anything than the high rollers out there. Nearly $200,000.

CHETRY: Although if you can afford your own little private jet, right --

ROBERTS: Oh yes you can afford a dozen of those.

CHETRY: Right.

ROBERTS: if you can afford a private jet.

CHETRY: Or I mean a little -- what about a little tiny -- small --

ROBERTS: I guess you can get a small plane, two-seater Cessna, four-seater for less than $100,000 if you bought it used. So that together with a car, you know, yes.

CHETRY: You can drive right off the runway at La Guardia. Yes, pretty cool.

ROBERTS: Why would you want to get out of the air? You are on the wagon, slam into traffic.

CHETRY: I know, I know, what you need is a landing strip at your house. That would perfect that.

ROBERTS: Perfect, like John Travolta.

CHETRY: Exactly, well 23 minutes past the hour. We'll be right back.

(COMMERCIAL BREAK)

CHETRY: Twenty-five minutes past the hour. Your "Top Stories" just minutes away. But first though an "A.M. Original," something you will only see on AMERICAN MORNING. The Supreme Court decision this week to strike down Chicago's 28-year-old ban on handguns is dividing the city. But if you flip through newspaper editorials, one thing is very clear.

ROBERTS: Everyone agrees that it is something has to be done to deal with crime in the city of Chicago. According to "the Chicago Tribune," there are have been 209 homicides in the city since January. Our T.J. Holmes talked to Chicago teens about violence in their hometown. What's at the root of it and what can potentially be done about it?

He joins us live for part two of the series, "Walk In My Shoes." Good morning.

T.J. HOLMES, CNN CORRESPONDENT: Good morning again to you guys. We talked about those homicides, 200-plus in the city. And oftentimes many of those are young people, teenagers, school aged children, who are caught in the line of fire and are dying day in and day out in Chicago.

Now we hear the headlines about those that are killed but so many times we don't hear about what's happening in the schools and on the streets day in and day out. A lot of other violence might not end in death but so many other fights and beatings of things that you don't hear about. So we went to the source. The kids themselves who are caught up in this and asked them what in the world are you all fighting about. (BEGIN VIDEOTAPE)

(on camera): How many in this group, if you give me a show of hands, how many on have you been in the past year been in a fight, physical altercation of some kind? All five of you in the past year have been in a fight in some kind.

UNIDENTIFIED MALE: Except for me.

HOLMES (voice-over): For these Chicago teens, fighting is a way of life.

UNIDENTIFIED MALE: It is like that every day in school. There is not a day you don't see somebody bump into somebody and not get in an argument over petty stuff.

HOLMES: Not an accident bump but a move meant to intimidate.

(on camera): Why is it so important to be big man on campus?

UNIDENTIFIED MALE: If you are a big guy, you are going to try and keep that reputation. So somebody bump you, you are going to just say something to him because you are going to feel like, in your head, that you just got treated like a punk.

HOLMES: Has anything gotten more serious?

UNIDENTIFIED FEMALE: Once I got jumped I was by myself. And I found myself fighting 15 girls - and then, it was like OK, we are going to save your life today. And that scared me.

HOLMES (voice-over): What these Chicago teens tell us is not unusual. In fact, nearly 40 percent of Chicago public school students were involved in the physical fight.

LILA LEFF, CEO, UMBIA STUDENT DEVELOPMENT CORP: High school is about young people scrambling for power and influence.

HOLMES: Lila Leff leads a program that in part tries to stem teen violence. She says kids are vying for power and prestige everywhere.

LEFF: In some high schools the currency is how much money your parents make, or what car are you going to drive when you are 16. Or what college you are going to get into because you are taking 5 AP classes. And in some places, the currency is your reputation.

HOLMES: Because for many of these teens, a reputation is all they have. Eighty-five percent of Chicago public school students live below the poverty line. Gangs, guns, drugs are all too common in poor neighborhoods.

(on camera): Have you all witnessed some kind of violence, shooting?

UNIDENTIFIED MALE: I have. UNIDENTIFIED FEMALE: I have. My brother.

UNIDENTIFIED MALE: It happens every day. And it'd be mostly over petty stuff.

HOLMES (voice-over): For these teens the daily threat of violence is all too real.

(on camera): Wait a minute, you all kept -- you carry stuff around when you are outside --

UNIDENTIFIED FEMALE: Yes.

UNIDENTIFIED FEMALE: Of course. If you don't carry -- what, exactly

UNIDENTIFIED FEMALE: You might as well lay down in your grave. You may as well dig it yourself.

UNIDENTIFIED FEMALE: Who don't carry mace.

HOLMES: Wait what do you carry?

UNIDENTIFIED FEMALE: I carry a taser and mace.

UNIDENTIFIED FEMALE: I carry mace, box cutters and scissors.

HOLMES (voice-over): These teens have developed a tough experimenter in order to survive.

UNIDENTIFIED FEMALE: If I told my mom I got into an argument, wait, you didn't fight her, I'll get your scary stuff out of my face.

HOLMES: An attitude youth violence expert Dr. Carl Bell says is no surprise.

DR. CARL BELL, YOUTH VIOLENCE EXPERT: If the parent is scared, something will happen to the kid, and that fear turns into anger and the anger gets transmitted to the kid and the kid is told to defend yourself because if you are a punk, people are going to try you.

HOLMES: Leff's program, UMBODIA, tries to change that thinking.

UNIDENTIFIED MALE: You can't get your image up.

HOLMES: Teaching students leadership skills to help resolve conflicts without fighting. These five teens say it is helping them.

UNIDENTIFIED FEMALE: I learned how to control myself.

HOLMES: Amber was suspended 15 times for getting into fights during her freshman year. Now a junior, she says she's worked hard to keep trouble at bay.

UNIDENTIFIED FEMALE: Though I started looking at a lot of situations different. I started looking at the fights different. Like when people come to me I'm like, think. I'll be stopping while we are arguing, I'll be thinking in my mind like OK, is fighting her really worth it? You are going to get ten days out of school. And it is not even worth it.

(END VIDEOTAPE)

HOLMES: It's amazing to hear, 15, 16-year-old kids talk about having to carry scissors and box cutters and tasers in their bags to and from school. Now that group you saw there, Amber, saw there in the end, her and another young lady, are involved in what they call a circle. It is this peer circle they use, a peace circle, they call it.

It is designed to get kids that are about to fight to sit down in a circle of friends and resolve those issues. Those two young ladies are very involved in that and it has been cutting down on the number of conflicts and number of physical fights between students at that school.

Also, another young man you saw there, Kevin, he is getting set to go to Southern Illinois University in the fall. So a couple of updates on the young people, it sounds like they are being helped by that program in their school.

But again, those programs can't be everywhere. They are trying to expand. But stills, it is making a difference where it is. But right now it is not everywhere and certainly is needed in more places, guys.

CHETRY: Absolutely. As we talk about, the budget cuts, lot of programs are going by the wayside, unfortunately, after school programs give the kids something to do other than, you know, potentially fight.

HOLMES: Yes. And they are, at least in Chicago, talk about funding at least. They are now going to use $25 million in stimulus funding to help with the couple of other mentoring programs around the entire city and also some of those programs that get kids to figure out how to resolve their conflicts without fists and knives and without guns.

And $25 million, that's something, but just a drop in the bucket. Some of those programs are showing some success. You know, any little bit helps, guys.

CHETRY: All right, good stuff. T.J., thanks so much. T.J. is coming back tomorrow with part three of a special series to take a look at what it is like to walk in a Chicago teen's shoes. He actually takes the walk to school with two teens to see how they survive on Chicago's tough streets. That's tomorrow on the most news of the morning.

ROBERTS: Crossing the half hour now and checking this morning's top stories. Across southern Texas and northern Mexico, thousands of people are taking cover as Alex, now tropical storm, roars over land, the fear today that the massive storm system could cause flooding and mudslides and kick up tornadoes. Alex is responsible for at least one death so far. That's in Monterrey, Mexico. It made landfall late last nature as a category two hurricane.

CHETRY: Alex is kicking up waves 600 miles away off Louisiana. Where the oil spill -- the hurricane could disrupt oil spill cleanup efforts for days. Five hundred oil skimming boats already had to head back to shore. And officials say that the storm now downgraded to a tropical storm, the boom men to keep the oil from spreading.

The Coast Guard is planning to do a flyover today to see the impact on the spill.

ROBERTS: And police in Oregon have reopened an investigation involving former vice president Al Gore. A massage therapist accused Gore of unwanted sexual contact in a hotel back in 2006. Police spoke to the woman in January of 2009 but initially closed the investigation because there was a lack of evidence.

Gore's spokeswoman says that Mr. Gore, quote, "Unequivocally and emphatically denied this accusation when he first learned of the existence three years ago. He stands by that denial."

CHETRY: In just a couple of hours, President Obama will deliver a speech, making his case for comprehensive immigration reform. The federal government is certainly feeling the heat on this issue now that states like Arizona are acting on their own to deal with illegal immigration.

ROBERTS: The murder of Arizona rancher earlier this year by a suspected illegal immigrant may have been a turning point in the debate. CNN's Casey Wian is life for us in Arizona with that story. Good morning, Casey.

CASEY WIAN, CNN CORRESPONDENT: Good morning. The death of Arizona rancher Rob Krentz earlier this year has really galvanized residents along the border with Mexico. Many say they no longer feel safe in their own homes, and they are growing tired of waiting for the federal government to secure the border.

(BEGIN VIDEOTAPE)

WIAN: Howard and Rosemary Hunt live 40 miles from the Mexican border in southeastern Arizona. In January they were tied up and robbed by two illegal immigrants, one wielding a machete.

WIAN (on camera): Is this where had you your first confrontation?

ROSEMARY HUNT, ARIZONA RESIDENT: Yes, right there.

HOWARD HUNT, ARIZONA RESIDENT: I told him when he took her down, I said "You harm her and I will kill your (expletive). He cut my hand because I reached back to grab the darn thing. I said, you know, they are going to have to kill us because they can't leave us be, we will identify them. They never did, thank god. ROSEMARY HUNT: He wanted me to go in here. I got this far and went. He said you hit hurt.

WIAN: The intruders tied up the Hunts in this bedroom and fled in their vehicle. They were caught and sentenced to long prison terms. The Hunts feel fortunate to have escaped with their lives.

The residents of this nearby house also escaped by selling their property and moving to Montana, where we spoke with Terry Stoller via Skype.

TERRIE STOLLER, FORMER ARIZONA RESIDENT: That could have been us.

WIAN: Then another neighbor, rancher Rob Krentz, was shot and killed by a suspected illegal immigrant.

TOLLER: When the rancher was killed, we knew we had to make a decision not to go back. It was no longer safe for us to be walking out on the ranches, hunting quail. We were not well armed, and they would make quick work of us.

WIAN: Even though government statistics show a decrease in violent crime in cities near the southern border, rural border residents saw drug and immigrant smugglers are a bigger threat than ever. Yet Chet Miller just bought the Stoller property and plans to move his family there.

CHET MILLER, ARIZONA RESIDENT: The violence will be here like anywhere else. It will be here. To me it is a better lifestyle for my family to be out in the country versus being in the city.

WIAN: We asked what these current and former Arizonans want President Obama to say about illegal immigration and border security.

MILLER: I would like to hear him say we are going to secure our borders first.

STOLLER: The only thing that would make us feel safe enough to go back is if the border were secured.

ROSEMARY HUNT: If they're coming across the way they should and getting their papers, fine. But this illegal stuff, no.

HOWARD HUNT: The heck with Afghanistan and the heck with Iraq, the heck with the rest of them. How about us?

(END VIDEOTAPE)

WIAN: Frankly, no matter what President Obama says later today about immigration reform and border security, most residents here say they are skeptical that the federal government has either the ability or the will to actually stop smuggling along the border.

ROBERTS: They don't have much faith in the 1,200 National Guard troops the president will send out? WIAN: Absolutely not. Most people here think that's symbolic move, really a drop in the bucket. And remember President Bush a few years ago sent 6,000 National Guard troops in a support role for the border patrol. That did have some impact but it didn't come close to stop the smuggling.

ROBERTS: Casey Wian for us this morning in Arizona. Good to see you this morning.

So we hear so much about kids, teens, and obsessed with their cell phones, texting all of the time. But you know what? Parents are guilty, too. And in many cases it is getting in the way of parenting. Alino Cho takes a look at that, coming up.

CHETRY: Also we are very excited about our next guest, Team USA soccer coach Bob Bradley. He will join us to talk about the World Cup performance, soccer fever in America. And what does he think about the often annoying vuvuzellas? That's coming up.

(COMMERCIAL BREAK)

ROBERTS: Welcome back to the Most News of the Morning. Team USA is back home from the World Cup. They were on a roll before losing to Ghana unfortunately last weekend. The American team captivated sports fans across the country with come-from-behind wins and a flair for the dramatics.

CHETRY: That's right. So could their performance help soccer finally join the ranks of major sports here in the U.S.? Joining us now is the coach of Team USA Bob Bradley. First of all, let me say congratulations. We were all watching. You did great.

BOB BRADLEY, COACH, U.S. MEN'S NATIONAL SOCCER TEAM: Thank you.

CHETRY: This was the first time at least in my lifetime where people were saying "What time is the game on? Are you watching?" People were at work watching. It seems like it caught on.

BRADLEY: Since I'm back, everywhere I have gone, I heard people say they love this team. It really seems like it helped spark a lot of interest.

ROBERTS: People had such high hopes for it. I guess a repeat of 2006, up against Ghana, Ghana won in 2006 and won again. You had calls that went against you. And FIFA came out and apologized to England and Mexico for bad calls that went against them but didn't apologize to you. I want your thoughts on that.

And what about the instant replay? You are a supporter of that.

BRADLEY: I'm a supporter in term of the goal line cam, because it is tough to score goals in soccer. And if the ball is over the line it needs to count.

ROBERTS: What about the fact England and Mexico got an apology and you didn't? BRADLEY: I had a few people ask me why we didn't get an apology. But the team handled some of the calls well. As you know, the first round was a strong performance across the board. That created high expectations. And in the end, we really felt we were on the verge of something big.

CHETRY: What's it like to play against Ghana?

BRADLEY: Ghana is a really athletic team, talented, creative. I thought on the day we created more chances but they seemed to take theirs better.

ROBERTS: So many soccer moms and soccer dads every weekend across America go out and stand in the sidelines watching their son or daughter thinking, wow, maybe someday my child could be in a World Cup. Your son was in the World Cup, Michael. He played for your team. What was it like to be a dad on the sidelines, even though you were the coach, watching your son play in the world cup?

BRADLEY: Well, on field, it is business. Every now and then away from the field, there is a lot of pride that he took something he loves since he was little and worked hard at it. and I think he's done well for himself.

ROBERTS: You were really proud?

BRADLEY: Of course, yes.

CHETRY: How about Landon Donovan? His name has been out there a lot. Clutch in some of your games. Did you have the feeling he would carry you through?

ROBERTS: We did. Landon was really focused on this, his third World Cup. And he has really stepped up as a team leader and I thought he had a great World Cup.

BRADLEY: What is it, Bob, do you think, about soccer that it hasn't caught on here the same way it has in European countries and Latin American countries? Is it our game the way we play the game, too much competition? Is it the way the other games are played?

We are talking about this morning, if you are talking about football and basketball, something happening all the time. You can go long stretch necessary soccer when the ball is going back and forth, punctuated by moments of jubilation or despair depending on what team you are on. Why do you think it hasn't caught on here?

BRADLEY: I think soccer has grown, but it has gone step by step. When you think about the history and the traditions of our big sports, football and basketball, baseball, soccer has had to take some time to develop its own history and traditions.

But Major League Soccer has really helped. The U.S. is now putting together a bid to host another world cup, either in 2018 or 2022. CHETRY: And former President Clinton was trying to help you guys out there. It is already built -- built-in fans and everybody could root for their home team. It was nice to hear him say that.

BRADLEY: It has been great. Having former President Clinton as a leader in this effort, worldwide, his charisma has paid off already.

CHETRY: I want to ask you about the popularity of soccer, because 15 million according to Nielsen, 15 million people watched the game you played between Ghana and the U.S. That's nothing to sneeze at. That's been along the way in all of the rounds, you guys broke records in terms of U.S. viewership.

What was it about this year that really electrified people about your team?

BRADLEY: I think that American sports fans, the American public, love to see a team that competes, gives everything they have. We didn't spend time worrying about calls that went against us. I think people appreciated the way we put everything on the line. And we are proud of that.

ROBERTS: Bob, you have said that in order to build world class teams, you really have to build soccer at the grassroots levels in the United States. We are tops in the world when it comes to football, basketball, and the United States has grown its hockey programs to the point you can keep a lot of the Canadian players out of the United States even though it is their birthday.

Why can't we do that with soccer?

BRADLEY: We are doing it, but it is still a work in progress. The United States soccer has a program with some developing academies where we are trying to have a greater influence with our younger players. We are trying to reach you on and into the cities and the urban areas to make sure the talent there is recognized and pushed along.

So there's a lot of great efforts and I think that we will see con progress.

ROBERTS: Well Bob, well done in this year's World Cup.

CHETRY: I just have to ask you, quickly, a lot of people were complaining about the vuvuzelas watching on TV's. And this is so annoying and it sounds like the killer bees are out there. Did it bother you guys when you were playing?

BRADLEY: In the stadium, no. But when you watch a game on television, it's difficult.

CHETRY: They got to figure out a way around that next time. Anyway, it's great to see you this morning.

ROBERTS: Congratulations.

CHETRY: Bob Bradley and yes, congrats from all of us. You guys did great.

BRADLEY: Thank you for having me.

ROBERTS: You bet.

CHETRY: Sure.

Well, still ahead, we're talking about now tropical storm Alex still pouring across the Gulf. We're going to see whether or not it's going to be out of the way in time for the holiday weekend and also what it means for the oil spill cleanup efforts; Bonnie Schneider joining us next.

Forty-five minutes past the hour.

(COMMERCIAL BREAK)

SCHNEIDER: Good morning everyone. I'm meteorologist Bonnie Schneider tracking tropical storm Alex as it batters much of Mexico and Texas.

Right now the winds are at 70 miles per hour. But this storm came in as a very intense Category 2 storm last night. Meaning, winds were up to 105 miles per hour.

Now, the track took it south of Texas, well into Mexico. And that's where it's headed right now, but wind, rain, waves, all battering South Padre Island. We can show you what it looks like. And you can see there was a lot of high water and there still continues to be a flood threat in south of Texas with the waves rushing in. Those wave heights will be three feet above normal at the time of high tide for today. So the waves have really kicked up throughout much of this part of Texas.

And you can also see strong thunderstorms on our radar picture hammering not just Texas but Louisiana, well into Mississippi and Alabama. And this just in: we now have a tornado watch. This is in effect until 8:00 p.m. tonight. So the flood risk and the threat for severe weather continues into the evening hours for Texas.

We'll have more on the forecast plus your top stories coming up next on AMERICAN MORNING.

(COMMERCIAL BREAK)

ROBERTS: Our little goody-two-shoes still produced (ph) there, always planning for the gala (ph).

Nine minutes until the top of the hour. Time for your "A.M. House Calls": stories about your health.

Every Thursday Dr. Sanjay Gupta opens up the mailbag joining us live from Atlanta to answer your questions.

CHETRY: Hey, Sanjay. All right, let's dive right in. I first e-mailer comes from Chicago, Katie. "My mom swears by toning sneakers. Do they work? And will wearing them really help firm my tush?" We were all wondering that actually -- Sanjay.

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Well, there's a lot of interest in this. In fact, this is the biggest part of the sneaker industry right now, these sort of toning sneakers. People around here, by the way, I don't think you guys knew this, actually wear these as well.

Rick Sanchez, one of the anchors during the day, he wears a dress pair of these. There he is wearing them -- every single day.

CHETRY: Well, there is your answer about the firming.

GUPTA: Right. Yes, I'm not sure what you mean by that. Be he -- he actually swears by these. He says he gets a lot of benefit out of them. The truth is probably the jury is still out on this. There haven't been any independent studies to verify some of the claims made by these shoes. They say that simply walking like that can activate your calves, activate your gluts.

And there's a little bit of instability in the shoes which they say it forces your core muscles to work. But again, there is no proof that any of that really works or has any benefit long term. Some say the instability can actually lead to Achilles tendon problems later on.

So I told Rick this. I'll tell you as well. Your best bet is getting to the gym; the claims made by these types of shoes is that it obviates the gym. You don't need to go to a gym anymore. That's probably not true.

ROBERTS: Yes, I've got a pair of those in my office right now and I plan on wearing them to the gym later on this morning.

So --

GUPTA: All right. So have you a two-for there. Good for you guys. Be careful. Don't fall.

CHETRY: They have flip-flops, too, Sanjay. You know that they've -- they've -- they claim that the flip-flops do that, too. I don't know. I think people are just trying on get a couple of inches higher or taller.

ROBERTS: They do make you taller and no question.

And the next question from Rashimi in Texas, who writes, "How do we define the term organic particularly in milk? Does it imply no-growth hormones or preservatives?"

GUPTA: Yes, you know, this is something I think about all the time. I have three young girls. And so you know, buying milk is obviously something we do a lot.

The first way to think about this is that organic doesn't really necessarily refer to the food product itself. But rather to the way it was produced, a subtle difference but an important one. Now, when it comes to milk specifically, it means that they are not going to add any hormones specifically, such as growth hormone. They don't add preservatives. The milk is pasteurized in a different way and also the type of feed for the cow is different, grass and certain grains.

But you know, and keep in mind as well that there are low levels of pesticides just about everywhere. In the water, in the soil; so even though it may be classified as organic, it probably still has some level of pesticide in the product whether it's milk or something else because of those reasons.

But milk -- milk is a pretty safe bet and again, the no hormones and no preservatives, you know, that's probably going to be a pretty good description of it.

CHETRY: Yes. And that's why it's more expensive as well. Some of the local growers say that if they are doing organic and they have to really watch to make sure the feed, everything from the feed on down is, you know, quote-unquote, "organic". That's why it cost a little bit more.

GUPTA: That's right. Growth hormone is given to cows so they get bigger and make more milk. If they're not being given that, obviously they don't make as much and that drives up the cost as well to some extent.

ROBERTS: Sanjay, great to see you this morning. Thanks for coming by.

GUPTA: Take care.

CHETRY: You, too, Sanjay. Thanks.

Well, if you are obsessed with your cell phone you could be causing a disconnect with your kids. Alina Cho taking a look at a self- professed Blackberry addict or Blackberrydict -- whatever you want to call it and she says it is affecting how she deals with her kids. But what's the solution?

Fifty-five minutes past the hour.

(COMMERCIAL BREAK)

CHETRY: Welcome back to The Most News in the Morning.

You know, no question about it, teens and pre-teens, of course, the titans of texting. Was it a 13-year-old girl who said she sent over 14,000 text messages in just a month?

ROBERTS: And I don't think she had an unlimited data plan either. More and more it's parents who have their eyes glued to their smart phones and not their kids.

Alina Cho here with some interesting developments about what can be a damaging distraction when it comes to parenting. ALINA CHO, CNN CORRESPONDENT: Hey there.

CHETRY: Why are you looking at me?

CHO: I'm not looking at you. I mean should I be looking at you. Laugh if you want to guys but this is serious stuff, you know. It is no secret. A lot of us are addicted to our iPhones and Blackberries.

But what happens when that gets in the way of parenting? Some parents are spending so much time looking down and typing that they are ignoring their children. And child development experts say that's a problem.

(BEGIN VIDEOTAPE)

STEPH THOMPSON, STAY-AT-HOME MOM: How was field day?

CHO: Stay-at-home mom Steph Thompson has three children of sorts. The two you see and the one you may not know exists, her Blackberry.

THOMPSON: I look at it a lot, often, as my one son told me, more than at his face.

CHO: Like many, 39-year-old Thompson fully admits she is addicted to the very device that allows her the flexibility to work from home and be with your kids. The irony is not lost on her.

THOMPSON: You guys, hold on.

CHO: The Blackberry that makes her constantly available to others is making her unavailable to her children.

Don't you worry that you are taking your eye off the ball, so to speak, your child?

THOMPSON: I do worry that I am ignoring my children.

CHO: It can be dangerous. I spoke to one man who says he actually saved a baby who wandered into the street and was nearly hit by a car. He says both of the parents were texting side by side and not paying attention. Other mothers we spoke to say their mobile technology obsession has made them take pause, too.

UNIDENTIFIED FEMALE: I'm with my 8-year-old son in the middle of the street. He is telling me a story. I'm just kind of on autopilot while where my presence is answering the e-mail or whatever I'm doing with the phone.

CHO: More than 285 million Americans now communicate via mobile devices; that's potentially a lot of parents texting. Child development experts call the texting, e-mailing, phoning while parenting trend, alarming.

DR. LORI EVANS, NYU CHILD STUDY CENTER: You don't feel good about yourself when your mother is saying oh, I need to just answer this e-mail. What message does it send? You are important but just hold on a minute.

CHO: Thompson is so aware of her problem the freelance writer wrote about it on an online parenting site, babble.com asking "Does my Blackberry make me a bad parent?"

EVANS: Sometimes we find a middle path to everything. And it may not be that I'm not going to answer my Blackberry or use my cell phone. I think it is about what would it be like to turn the Blackberry off for 20 minutes?

CHO: Thompson says she is willing to try that. Her goal is to look at her kids more than her Blackberry.

(END VIDEOTAPE)

CHO: And the kids like the Blackberry, too, for other reasons, for the games. There's very little research on the effects of texting and e-mailing while parenting but there is no doubt that engaged parents are better ones. Experts say, guys, if you want your kids to be able to communicate, guess what, you have to talk to them. You know, you have to be with them not just physically but mentally, too. That's not a news flash.

ROBERTS: And she better do it soon because it looks like the one son at least who is getting to the age where he's going to want his first smart phone.

CHO: He is already asking.

ROBERTS: As soon as he gets that then she has lost him.

CHETRY: I remember when my daughter once said, "Mommy, put down that blueberry." I said ok. You know what --

(CROSS TALKING)

CHO: She doesn't say that, you are never on that.

CHETRY: Yes, right.

ROBERTS: Thanks Alina.

CHETRY: Alina thanks so much.

ROBERTS: Continue the conversation on today's stories go to our blog at CNN.com/amfix.

That will wrap it up for us. See you back here again for the lead-in to the July 4th weekend.

CHETRY: that's right. We're excited for that.

Meantime, the news continues, "CNN NEWSROOM" with Kyra Phillips starts right now.