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Debt Ceiling Vote; Texas Soldier Found With Bomb-Making Materials; Dominique Strauss-Kahn Accuser Thanks Supporters
Aired July 28, 2011 - 11:58 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SUZANNE MALVEAUX, CNN ANCHOR: I want to bring in some real smart players to talk about this. First of all, congressional and political correspondent Joe Johns.
And, Joe, you and I, we have covered Washington for years here. I don't think I have ever seen something, even when you talk about the economic stimulus package and health care, that has come to this point where the stakes are so high and this town is so divided.
Clearly, Carney was trying, in some ways, to put the spin, the White House spin on this, saying, look, don't waste your time, Republicans, to throw out these proposals that are dead on arrival. What is he talking about? Speaker Boehner's plan.
What is taking place? Why is that moving forward? And is Carney right? Is it actually doomed to fail? Should they move on and try something else at this point?
JOE JOHNS, CNN SENIOR CORRESPONDENT: Well, Suzanne, a lot of people have actually said that, including the majority leader, Harry Reid.
Now the truth is there is a lot of similarity of sort of items and ideas in what the Senate is talking about and what the House is talking about. But the thing that is different in the Boehner plan is this two-step deal, where you work something out for now and then you come back a little bit before the election or sometime down in December, and go through this process again.
The Democrats say that's unacceptable, it's risky for the economy, and generally just causes problems. So that's the kind of thing that they really have to fine tune and figure out what they can do to change it or whatever, but there are similarities there.
You know, a couple other notes, too. We have been trying to get a feel for what the vote counters are saying on the Hill, and we had gotten an earlier indication from Republicans that they were feeling pretty strong, there's a lot of confidence they are going to get a lot of Republican votes.
There is a report out there from "The Hill" newspaper now that Speaker Boehner himself has actually weighed in and said in fact that he does not have the votes yet but is trying to get there. So it sounds like a work in progress on the Hill. Meanwhile, as you know, over in the Senate side, they have said that it's dead on arrival. So there are some things that they need to fix and not a lot of time to do it, Suzanne.
MALVEAUX: Is anything happening? Is there any progress being made? That's all the American people want to know. Are these guys actually working to get something done right now on the Hill?
JOE JOHNS, CNN CORRESPONDENT: Well, you know, it's interesting. I was listening to a number of members of Congress coming out in the meeting of Republicans in the basement of the U.S. Capitol. You know, they send us over sort of this closed-circuit TV feed of what people were saying, and it was pretty clear from sort of reading between the lines from the comments of a couple members who, you know, could have been hard line or staunch a few weeks ago about not raising the debt ceiling, that they are willing to try to get some arrangement with the White House.
So, they are not saying, you know, it's my way or the highway anymore, and once this thing hits the Senate, I don't want to talk about it. Clearly, there is much more of a bargaining mood than there has been over the last several days.
MALVEAUX: OK.
JOHNS: So that is a hopeful sign, at the very least.
MALVEAUX: All right, Joe. Well, that's good, if there's a bargaining mood there.
I want to bring in John Avlon. Of course, political columnist for "Newsweek" and "The Daily Beast."
We're running out of time here, John, and you have been very good about really kind of expressing what so many people have been saying, which is essentially the outrage, the frustration about what is taking place on Capitol Hill here.
Are they at the point where it's too late?
JOHN AVLON, CNN CONTRIBUTOR: Well, it's not to late, but we continue to pedal closer towards this cliff. And what I think you heard in that press conference is the overwhelming atmosphere of uncertainty that exists in Washington right now and the chaos that exists within the Republican conference.
I mean, Speaker Boehner is still trying to get the votes he needs for his plan, while Harry Reid is saying it's DOA in the Senate. You know, these sort of competing partisan plans is where you usually begin a negotiation, not where you end. And while there still is no sign of a clear path that would raise the debt ceiling and begin seriously dealing with the deficit and the debt, the American people are getting more and more frustrated.
They realize just how dysfunctional this debate is. And the markets are starting to get spooked, too. They've assumed a degree of rationality on the part of Congress, are they're beginning to see that maybe that's nothing you should assume out of this Congress.
MALVEAUX: Let's bring in Alison Kosik, who's at the New York Stock Exchange.
(STOCK MARKET REPORT)
MALVEAUX: A bit of breaking news here. I'm just going to read my e-mail.
New Jersey Governor Chris Christie was having difficulty breathing. He has been taken to the hospital. This is from his press secretary. I'll just read this quick line here. We're getting this statement.
"Governor Christie was having difficulty breathing this morning, and out of an abundance of caution, he went to Somerset Medical Center to be checked out. It is in line with someone dealing with asthma. He is being given routine tests as a precautionary measure. The governor is extremely grateful for the quality of care he is receiving this morning and has nothing but praise for the world class doctors, nurses and staff."
That, just a quick update on New Jersey Governor Chris Christie, taken to the hospital this morning out of an abundance of caution after some complaints that he was having difficulty breathing, and that that is in line with someone dealing with asthma.
Also have another developing story. This, out of the Pentagon.
I want to bring in our own Barbara Starr, who has a story about a Texas soldier, I believe, suspected of having bomb-making materials near Fort Hood, Texas.
Barbara, what do we know about that?
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Suzanne, a matter of concern to the U.S. military and local law enforcement.
Twenty-one-year-old Army Private First Class Nasser Jason Abdo was arrested yesterday at a traffic stop in Killeen, Texas, just outside of Fort Hood, Texas. This all came because of a tip-off from a local gun shop owner who said Abdo, who you see there, was in the shop acting suspiciously.
They stopped him. When they searched his hotel room, they found weapons, ammunition, gun powder, 18 pounds of sugar, a pressure cooker, ammunition magazines.
Material officials tell us it could be construed as bomb-making material. So, at this time, Army officials say they know of no direct threat to Fort Hood, Texas, but of course Fort Hood, Texas, is always a matter of such concern and sensitivity because, of course, in 2009, there was a mass shooting there. Some 12 people were killed and 31 wounded by an Army psychiatrist at Fort Hood. So, the investigation continues. We are told that this private first class may face federal charges an soon as today. And they are looking into any evidence they can find about any threats he might have made against Fort Hood. At this time, officials are not revealing any public information about a threat. The Army, however, says Fort Hood is safe at this hour -- Suzanne.
MALVEAUX: All right.
Barbara Starr at the Pentagon.
Thank you, Barbara.
Well, other stories that we're following now.
In New York, a public appearance this hour by the hotel made who accuses Dominique Strauss-Kahn of sexual assault. Nafi Diallo is visiting a Christian center to thank her supporters. Prosecutors are still trying to decide whether to proceed with the case against Strauss-Kahn. He is the former head of the International Monetary Fund. They met with Diallo for more than seven hours yesterday.
Polygamist sect leader Warren Jeffs has dismissed his defense attorneys and wants to represent himself in his sexual assault trial. He told a Texas judge last hour if he does not represent himself, true justice cannot be served. Jeffs has pleaded not guilty to charges of bigamy and sexual assault of a child.
In Norway, an end to the search for victims of last Friday's shooting spree on an island near Oslo. Police have now confirmed 68 deaths, and they say there are no more victims. Ahead of the shootings, the bombing at the government building in Oslo killed eight people. Police plan to question the suspect in the attacks again tomorrow.
A dramatic scene just moments after last week's bombing in Oslo. All of it captured on camera by a Norwegian man. He was driving in a tunnel under the government plaza when the bomb went off. He got out of his car and he turned on his camera. The scene, eerily quiet at first, with no panic in the streets.
People started screaming, and they lost their hearing because of the bomb, and so they could not hear, and some of them were not able to walk.
(BEGIN VIDEO CLIP)
JOHAN CHRISTIAN TANDBERG, VIDEOTAPED AFTERMATH OF OSLO BOMBING: The first few minutes, people were in shock. It was very quiet, silent for the first three minutes. Then I started to hear some screaming as people -- people lost their hearing because of the bomb, so they couldn't -- some of them were not able to hear, some of them were not able to walk.
(END VIDEO CLIP) MALVEAUX: In South Korea, the heaviest rain in a century. You can hear the water rushing and the panic from people there as they are swept away. At least 49 people killed. And the rain, it keeps falling. Some areas around Seoul are getting two inches an hour. Most of the deaths have been in landslides.
Ground Zero workers are furious over a decision by the government not to cover cancer treatment for responders who got sick after 9/11. Well, last night, at a town hall in New York, frustrated cancer patients sounded off about what happened to them after the dust had settled.
(BEGIN VIDEO CLIP)
JOHN MARSHALL, RETIRED NEW YORK POLICE DETECTIVE: I want to show you something. Sometimes I have to eat through this tube because the muscles in my neck don't work to swallow. I breathe and talk through this tube, and I'm the lucky one.
(END VIDEO CLIP)
MALVEAUX: Here is your chance to "Talk Back" on one of the big stories of the day. Today's question: Is the Tea Party helping or hurting the country?
Carol Costello, she joins us from Washington.
Carol, great question here. A lot of people are looking at what is taking place in D.C., and just wondering, are we at the precipice of some sort of financial crisis within six days?
CAROL COSTELLO, CNN CORRESPONDENT: I know one thing though, Suzanne. The Tea Party rules.
I mean, ask anyone. Heck, ask House Speaker John Boehner who is calling the shots in the debt ceiling debate. It would be the Tea Party.
Its members told Boehner they don't like his bill to raise the debt ceiling, but then again, some Tea Party faithful don't want to raise the debt limit under any circumstances, period.
Michele Bachmann leads the Tea Party Caucus.
(BEGIN VIDEO CLIP)
REP. MICHELE BACHMANN (R), PRESIDENTIAL CANDIDATE: Washington has their fingers in their ears right now. They're not listening to the American people. That's why I am adamant, I will vote no on increasing the debt ceiling. We need sanity back in Washington.
(END VIDEO CLIP)
COSTELLO: But wait a minute. A CNN/ORC poll shows only one percent of voters say they are active members of the Tea Party, and only 27 percent say they support the Tea Party. Yet, the minority rules because House Republicans need to pass a debt ceiling bill, and they need those Tea Party votes to do it or, heaven forbid, Mr. Boehner may have to ask a few Democrats to vote for his plan.
And that horrible scenario has Republicans acting like Democrats. They're fighting amongst themselves.
(BEGIN VIDEO CLIP)
SEN. JOHN MCCAIN (R), ARIZONA: That is not fair to the American people, to hold out and say we won't agree to raising the debt limit until we pass a balanced budget amendment to the Constitution. It's unfair, it's bizarro.
(END VIDEO CLIP)
COSTELLO: Consider this, though: Tea Party supporters say there would be no debt limit negotiation going on if not for the Tea Party. And didn't voters yearn for lawmakers who would stand up for their principles and the consequences be damned?
So the "Talk Back" question today: Is the Tea Party helping or hurting the country?
Facebook.com/CarolCNN. I will read some of your comments later this hour.
MALVEAUX: All right. Thank you, Carol.
Here's a rundown of some of the stories we're covering over the next hour.
First, does a hotel maid's decision to speak out against former IMF chief Dominique Strauss-Kahn help or hurt her allegations of rape? I'll talk to legal analyst Sunny Hostin.
And a Denver teen who came face to face with a bear tells his story from the hospital bed.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I can remember the moment when it bit down on my head, and I was just thinking, I'm going to die. I kept saying, "I'm going to die. I'm going to die. I'm going to die."
(END VIDEO CLIP)
MALVEAUX: Then, a survivor of last week's deadly bombing in Oslo releases eerie video of the moments after the bomb hit.
Also, the owner of a solar panel company tells me why he is angry that Congress can't come to a compromise on the debt deal.
And why this former hacker has been hired by the federal government.
(BEGIN VIDEO CLIP) UNIDENTIFIED MALE: Good hackers think on both sides. How would you attack? How would you defend.
And the debate is, how can you become a good defender if you don't now how to attack? How can you be a good police officer if you don't know how the criminals think?
(END VIDEO CLIP)
MALVEAUX: The hotel maid who accuses Dominique Strauss-Kahn of sexual assault is speaking out publicly this hour. Nafi Diallo is visiting a Christian center in New York to thank her supporters. I believe we're looking at live pictures here out of Brooklyn.
Prosecutors are still trying to decide whether to pursue the case against Strauss-Kahn. He is the former head of the International Monetary Fund.
Sunny Hostin is with us from New York to talk about all of this.
Sunny, good to see you. I know your credentials. Obviously, a former federal prosecutor, a legal contributor to "In Session," our sister network on truTV. Got to give you your props, Sunny. You know, always got to give you your props.
SUNNY HOSTIN, LEGAL CONTRIBUTOR, "IN SESSION," TRUTV: Thank you, Suzanne.
MALVEAUX: Tell us if you would, do you think this helps or hurts Diallo, the accuser in this case, to make her case public and to take it to the public, essentially?
HOSTIN: You know, I think the conventional wisdom on that was no, it didn't help her case at all. You never want to have someone that you are going to put on the witness stand give a lot of statements to the public, because those statements can generally be used against you in court. You can be impeached with those statements if what you say in court is any different from all of the different versions that you have given to people before.
But I will say in this case, it is a strategy perhaps that has helped her. That is because there has been so much coverage of what she allegedly said at various times that was pretty negative, actually. And my understanding is that yesterday, she met with prosecutors, almost a marathon meeting, almost eight hours, and during that meeting, she went over the tape-recorded statements -- a tape- recorded conversation that she had with a friend of hers who is being held in an Arizona immigration detention center.
And what has been reported that she said something to the affect of, "Don't worry, this guy has a lot of money. I know what I'm doing."
Well, her attorney now, who was also there during this meeting with the prosecutors and an interpreter, the language I believe that the conversation took place in was Fulani, a West African language. Her attorney is now saying that that statement that she allegedly made was really taken out of context, Suzanne, and that while she made those statements at various times during the conversation, she didn't make them all at once.
And so perhaps now her, I guess, plan to try to push the prosecution's hand to let her have her day in court may have been successful.
MALVEAUX: Well, Sunny, let me ask you this. In most sexual assault cases, the accuser's identity, it's hidden, it's protected. You don't see the face of the victim or even learn of her name. This is really completely the opposite that's going on.
Could her strategy pave the way for a totally different approach to how sexual assault victims present their cases?
HOSTIN: Wow, that's a great question because you're right. You know, I used to prosecute sex crimes, and one of the most difficult things is that the victims sometimes feel this -- oftentimes -- this tremendous shame, and reluctant to go forward, to be identified as a victim of a sexual assault.
And so with this victim coming forward and telling her story, I think it very well could pave the way for victims to come forward because, again, they are the victims. I know there is the feeling of shame, but they don't need to be shamed, because it's the defendants and the perpetrators that should be ashamed.
So I think your point is really a good one. Perhaps that will be the outcome of this very brave woman, if in fact she was attacked, came forward.
MALVEAUX: Real quick, Sunny, if I could turn the page to the Warren Jeffs case, the polygamist sect leader who told a Texas judge today that he basically dismissed his defense attorneys and wants to represent himself in this sexual assault trial. Says if not, true justice cannot be served.
Is that a good move, do you think, by this guy?
HOSTIN: Well, Suzanne, there's an old adage that says, "He who represents himself has a fool for a client." And I have never seen someone represent themselves successfully.
I've tried cases against defendants who have represented themselves, and there's a reason why people go to law school and become trial attorneys. They are trained to do that.
And so this isn't a good move by any stretch of the imagination. But I don't know that it's unexpected, because he has fired several attorneys and has made the complaint that no one can serve him well. So, not unexpected, but pretty foolish, I think.
MALVEAUX: All right. We're glad you went to law school, Sunny. We've got you on our side to explain all of this. Thank you, Sunny. Appreciate it.
HOSTIN: Thanks.
MALVEAUX: Just ahead, a teenager who survived being mauled by a bear tells his story, says he feels lucky to be alive.
(COMMERCIAL BREAK)
MALVEAUX: Gridlock in Congress. Skittish markets, some dark warnings about what could happen if the debt ceiling is not raised. The United States has been here before, and while it has never failed to raise its borrowing limits, some folks are asking, why do we even have one in the first place?
Carl Azuz, here to explain it.
CARL AZUZ, CNN CORRESPONDENT: Hey, Suzanne.
MALVEAUX: Carl, why do we have this?
AZUZ: Essentially, it is checks and balances. It's a way for Congress to control the purse strings. And what they're doing basically is saying the United States government can't spend whatever it wants on whatever it wants, essentially. So, Congress, in theory, has the purse strings here. And the reason why I say in theory is because in practice, it hasn't really limited anything. Whenever we've gotten to the debt limit, they've just gone ahead and raised it.
So that's basically the limits of the debt limit.
MALVEAUX: How long have we had this debt limit in place? And has the spending, because of this debt limit, has it changed at all?
AZUZ: Well, for how long we've had it, you would have to go back to 1917. We're looking at World War I.
And what's interesting is before World War I, Congress had to approve every instance of borrowing the government had. So, for instance, the government wants to work on the Panama Canal. Congress had to approve that.
Now, World War I came around and it was going to be a huge expense for the U.S. government. So Congress basically said, look, you can spend what you need to spend without us approving everything, but we're going to put a limit on it, don't go over that limit.
MALVEAUX: All right. And has our borrowing changed at all because of this debt limit?
AZUZ: No. And we have a chart to illustrate this for you. I mean, it has gone up, and not just steadily. It's gone up exponentially.
This chart is from around 1970, the past five decades. You see it's gone from $395 billion debt limit to the $14.3 trillion one we have now. And the takeaway is, this isn't specific to any one administration, it's not specific to any one party in America.
This is essentially how we roll. And what will be interesting to see is, in the future, if this government or any government can make a substantial reduction in the United States debt. That would be a novel idea, Suzanne.
MALVEAUX: OK. Thank you, Carl. Appreciate it.
AZUZ: Thank you.
(NEWSBREAK)
MALVEAUX: And CNN reporters, anchors, producers cover stories around the world. Well, that means we also get to see some great tips and get some tips on some best restaurants, hotels, travel spots.
Well, in this week's "Travel Insider," Patrick Oppmann takes us to a Mexican restaurant in Seattle that rents kayaks.
(BEGIN VIDEOTAPE)
PATRICK OPPMANN, CNN CORRESPONDENT: I'm Patrick Oppmann in Seattle, and one of the great things about living in this city is you don't have to go far to find amazing views of the water. Whether it's Puget Sound or the many rivers and lakes that are nearby, it seems like you've got incredible water views just about everywhere you look.
I'm at a restaurant called Agua Verde. It's a Mexican place.
Upstairs, they serve food. Downstairs, they actually rent out kayaks. The idea is you come here for a bite and then go out for a paddle. It's a unique way to get a different view of this city.
REY LOPEZ, AGUA VERDE PADDLE CLUB: But as you paddle along, you see the history of Seattle. You go underneath the old bridges and you understand -- pretty soon it starts to sort of dawn on you that, really, to get from that side of Seattle to this side of Seattle, you had to paddle.
And now people are a little bit more remote. You know, they see the water from afar and they think everything is great on the water, and that it looks good to have it there. But they are not really experiencing being on the water.
OPPMANN: For $15 an hour you can rent a kayak. The restaurant also organizes tours where you can go through locks that boats pass through. And on nights that there is a full moon, they actually have night paddles.
Right now I'm on Seattle's Lake Union, where you have amazing views of the Space Needle, and just a short paddle away from here you can go and see some of the houseboats made famous by the movie "Sleepless in Seattle." Really, you get views of Seattle from the water you just can't get any other way.
So, whether you live here or you're visiting Seattle, don't miss out on the experience of going out on a kayak.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
MALVEAUX: Just a reminder, we're watching for any sign of movement in the debt standoff.
Now, here's a quick update. Here's what we're watching. The House votes today on Speaker Boehner's debt plan. Boehner is trying to shore up enough support among fellow Republicans for his plan to pass. But Senate Democrats, they say they will vote against it if it makes it through the House.
So, we are also following the anxiety on Wall Street over the debt standoff. Stocks are higher after the Dow plunged almost 200 points yesterday. It's not just mortgage or car loan rates that could be affected if Congress doesn't solve this debt crisis. The deadlock could hurt the struggling job market.
Poppy Harlow, CNNmoney.com. She joins us to explain that side. And Poppy, some of the CEOs of major banks now have reached out to the White House and Congress this morning. What did they say about the affects of a default or downgrade of the U.S. credit rating? What is going to happen?
POPPY HARLOW, CNNMONEY.COM: The words are pretty stern. I will read them to you in a moment.
But I think it's interesting, Suzanne, that you are seeing this eleventh hour ahead of that Tuesday deadline for a deal on the debt ceiling that we're seeing top business leaders across the United States reaching out out of Congress and the White House and saying this is no joke. You have to act and you have to act now. A letter was just issued in the past few hours from the CEOs of major banks, including Goldman Sachs, JPMorgan and Citigroup.
But I want to read you an excerpt of the letter they sent to Congress and to President Obama. Part of that letter read, "the consequences of inaction for our economy, the already struggling job market, the financial circumstances of American businesses and families, and for America's global economic leadership would be very grave." This is what they say, grave consequences if we do not see a deal reached very quickly on the debt ceiling.
They went on to say that a debt default or a potential downgrade of our country's AAA credit rating would dramatically worsen the business environment. Read through the lines, that means jobs, and good-paying American jobs.
I also this week spoke to the CEO of one of the world's - actually, the world's biggest software company, and here is his take on the lack of a deal in Washington. Take a listen.
(BEGIN VIDEO CLIP) BILL MCDERMOTT, CEO, SAP: Congress should come together and resolve this, raise the debt ceiling, do something on the core side of the equation so the country can get back on with its business and settle down the markets all around the world. Because so goes the U.S. in this regard. So goes a lot of other economies as well.
So, we have a delicate ecological balance in this global economy, and the U.S. has to play a leadership role in striving to come to a consensus and agreement on this right now. Make a deal.
(END VIDEO CLIP)
HARLOW: And you know, Suzanne, every American watching this right now that cares about the job market, is looking for a job, should care what the business leaders say. They are the heads of the companies that do the hiring. And right now, they are calling on the Congress and calling on the president to reach some deal before the deadline, Suzanne.
MALVEAUX: All right. Poppy, thank you so much.
It's not just the CEOs of huge companies who are worried about the fallout of the debt crisis, right? There are small businesses concerned about what it could be for them. Bill Snap, he is CEO of SolarFlex Techonologies. Thank you, Bill, for joining us.
BILL SNAP, CEO, SOLAR FLEX TECHNOLOGIES: Thanks for having me.
MALVEAUX: Very good to see you here.
SNAP: Nice to see you.
MALVEUAX: This is really going to impact small businesses. You're a small business owner, and your job is to provide solar panels to military bases so they can become greener, more energy efficient.
SNAP: That's right.
MALVEAUX: If we don't see a deal out of Washington, what does it mean for your business, for you?
SNAP: Well, it's important, because in the short term, the budgets for my business have already been allocated. But in the long term, and the long term is defined as six months or longer -- that could be put in jeopardy. And quite frankly, what is happening right now in small business is there is fewer opportunities, and there's a spike in people who are going after those opportunities. And so it's tough out there. It's -- it's difficult right now.
MALVEAUX: Is it tough to get a loan? Is it tough to actually make sure that you are meeting your needs, your clients' needs?
SNAP: You got it. It's -- I think what we're seeing nationwide with small businesses and they're banking counterparts is that there is a withdrawal in the liquidity of the system. What that means for the guy on the street, for small businesses like mine is it's not only tougher to get a loan, but banks are often calling loans quicker. And for private investment, and small businesses use a lot of angel investing and private sources of capital -
MALVEAUX: Sure.
SNAP: -- and that's also difficult because they are putting their money on the sideline.
MALVEAUX: And you could take another hit because I understand you deal with military bases, and we are going to see significant cuts on the side of defense?
SNAP: That's right. There's a mandate right now that has been in place for a couple years that the military by 2025, the four branches of the military will have 25 percent renewable energy. And for my business, where we put large-scale solar rays up on military bases and also private businesses - for the military, that's very difficult. Because if they have those cuts, then we will see our incremental business shrink. And that's hard for me because I am trying to plan a budget for hiring personnel.
MALVEAUX: Bill, explain this to us. Because a lot of people have been talking about if the U.S. credit rating is downgraded and it's more expensive to take out money, what does that mean for you?
SNAP: Well, I think what happens, if the credit rating is downgraded, when I go out and get a piece of business and I contractually lock up a piece of business, I have to buy inventory, and inventory is expensive. So, I need to go to a bank or lending institution or somebody who will loan that gap money for me in order to do what I need to do.
What happens is, if that -- if the U.S. credit rating gets downgraded, you know, the U.S. commercial banks are sitting on $1 trillion of treasuries. And so the government will tell those banks they need to carve more cash aside -
MALVEAUX: Right.
SNAP: -- which that means they cannot loan that money out, and that has a direct impact on small business on Main Street.
MALVEUAX: And you take a hit.
SNAP: And I take a hit.
MALVEAUX: All right. Bill, we hope that doesn't happen. Please come back with us next week when we hit that deadline, we find out what is going to happen. Because there's a whole bunch of uncertainty, and nobody really knows. But we hope that you're not impacted. But it could definitely be a real difficulty for you and a lot of other folks.
SNAP: Thank you very much
MALVEAUX: So, next week we expect you back here. SNAP: OK, it's a deal.
MALVEUAX: Thank you.
Dramatic scenes in Oslo, Norway, after last Friday's bombing at a government building. One man was at the scene right after the attack and had his video camera with him. We're going to show you what he saw and heard.
(COMMERCIAL BREAK)
MALVEAUX: We're following a developing story. The hotel maid, Nafi Diallo, who accused the former head of the IMF, Dominique Strauss-Kahn, of sexual assault is speaking before a group of supporters. A church group, a Christian group, in Brooklyn, and she just addressed them.
I want to play a little bit of sound, a little bit of speech that she gave to the group of supporters.
(BEGIN VIDEO CLIP)
NAFISSATOU DIALLO, ACCUSER IN DOMINIQUE STRAUSS-KAHN CASE: We crying every day. We can't sleep. Me and my family, we are going to relax.
(END VIDEO CLIP)
MALVEAUX: That is the hotel maid who has charged Dominique Strauss-Kahn of sexual assault. She has been taking to the airwaves, she has been talking publicly about her ordeal, trying to drum up support among those who will listen to her case. It is still undecided, they're still unclear whether or not that case will go forward against Dominique Strauss-Kahn, but she is making her case in public.
We also have another developing story we're following here. Now, this is out of Egypt. We are getting news now that the former president of Egypt, Hosni Mubarak, his trial is going to open up next week. That is according to Egyptian officials. Hosni Mubarak's trial and charges of corruption and ordering police to kill anti-government protesters. That trial is going to open Wednesday at the Cairo Convention Hall. That is according to Egypt's justice minister. The 83-year-old former president and his interior minister face possible death sentence if convicted of unleashing the police on the demonstrations that drove them out of office back in February.
And the human rights group Amnesty International has estimated at least 843 people were killed; more than 6,000 wounded during that uprising that lasted three weeks and essentially toppled the Mubarak regime.
Well, they depend on Social Security and Medicaid. Well, now seniors are worried about cuts to those programs because of the debt crisis. We've got a live report up ahead.
(COMMERCIAL BREAK)
MALVEAUX: Debt limit and the standoff has a lot of us worried about what is going to happen to mortgage rates, car loans, even our 401(k)s. But many seniors are worried about cuts to programs they depend on every day. We're talking about Medicare, Social Security, many other things.
CNN's Sandra Endo, she joins us at a senior center in Pasadena, California. Sandra, I can only imagine what people are saying about this standoff that is taking place in Washington.
SANDRA ENDO, CNN CORRESPONDENT: Yes, Suzanne, seniors here say they are scared, they're worried. If they don't get their Social Security checks or any cuts to Medicare and Medicaid, well, that would severely impact their livelihoods.
And we brought together some young, feisty seniors this morning to talk to us this morning about what's going on in Washington. And Anastasia here, you say you are watching the political debate play out, and you say you are angry. How angry does it make you?
ANASTASIA STEWART, SENIOR CITIZEN: Makes me want to hit the streets, because what they tell us is not the way it always is. And I am tired of the political games; I'm tired of them treating the American people like they don't have brains at all.
ENDO: And how would this impact you if those cuts are enacted?
STEWART: Well, we won't be paying our rent and you will have even more homeless people. We are becoming almost a third-world nation. It's of the corporations, by the corporations and for the corporations. People don't seem to matter anymore. But you can know that Washington's going to take care of Washington and the heck with the rest of us.
ENDO: And, Mildred, you feel the same way. How would these proposed cuts or if you don't get your Social Security, what would that mean for you?
MILDRED HAWKINS, SENIOR CITIZEN: I means that I'm suffering from the two h's, homeless and hungry. Please, play in the parks, not with my Social Security.
ENDO: You feel like you're a hostage in all this?
HAWKINS: Absolutely. I worked years and years to save money to live off when I become a senior. What do I have to look forward to now?
ENDO: Yes, it's a very troubling situation.
I'm joined also by an AARP representative.
Ernie, you've been campaigning for these seniors. What are you doing to fight? ERNIE POWELL, AARP ADVOCACY DIRECTOR: Well, we have a national campaign called Protect Seniors. And our message is, don't cut Social Security, don't cut Medicare as any -- as part of any deal on the debt ceiling or for deficit reduction. AARP members and their families and people on Social Security have worked their entire lives. These are earned benefits. So we can't see this happen. And we're asking our members to -- and all the public to let their congressman know to not make deals that cut Social Security and Medicare.
ENDO: All right, thank you so much, everyone. And they have a petition. A lot of signatures. People are signing to make sure their representatives in Washington are listening. But that's the big question, Suzanne.
MALVEAUX: Sandra, that's just excellent when you hear just, you know, how this is going to impact folks and the kinds of feelings, emotions that they have about this. Clearly this is beyond Washington. There's a lot of, you know, as you say, the ugliness of the sausage is being made. But people outside of Washington wondering what is going to happen next. We're keeping a close eye on that as well, Sandra.
I just want to take our viewers to Washington. We just heard from the Democratic leadership, Harry Reid, who essentially was telling us that after the House takes up the Boehner plan, which is expected if it passes in the House to move on to the Senate, but the Senate -- it will not pass in the Senate. That is the expectation, conventional wisdom out of Washington, which essentially leads us back to square one unless there's another deal that everybody can agree on that's on the table.
So, again, it's a lot of back and forth. We're looking at Democrat Chuck Schumer there speaking as well. All part of the process here that eventually could get hopefully to some sort of resolution, some sort of solution to this. But it is far from certain whether or not that's going to happen in that deadline August 2nd.
We're also getting a lot of reaction to today's "Talk Back" question. And we asked, is the Tea Party helping or hurting the country? Well, Jerry Young says that "the Tea Party is ruining our country." He says, "it's good to have ideals but not when they hurt the rest of us. Democrats could learn how to stick to their guns like them though."
And Carol Costello, she is back with more of those responses. But first, want to give you some free money advice from the CNN "Help Desk."
(BEGIN VIDEOTAPE)
POPPY HARLOW, CNNMONEY.COM: Well, time now for "The Help Desk," where we get answers to your financial questions. Joining me this hour, Jack Otter, the executive editor at cbsmoneywatch.com, and Ryan Mack, the president of Optimum Capital Management.
Thanks for being here guys.
RYAN MACK, PRESIDENT, OPTIMUM CAPITAL MANAGEMENT: Thank you.
JACK OTTER, EXECUTIVE EDITOR, CBSMONEYWATCH.COM: First question comes from Eric in California. Eric writes, "I have a cash rewards credit card which I use to pay for everything. I always pay it off within a week or so and never leave a balance when my statement comes around. Can this hurt my credit score?"
What do you think, Jack?
OTTER: No. Eric, you rock. If we all followed Eric's example, this country would be in much better shape. Keep on doing it. Get -- you know he is -- the credit card companies don't like him. They are giving him cash and he's not --
HARLOW: They're not making any money off him.
OTTER: And he's not giving them any interest rate, you know, love. So, absolutely. Just stick with it. Keep on paying it off. I mean at some point could you have sort of a blank credit score because you've never borrowed any money, yes. But that problem is so small compared to the dangers of carrying too much debt, don't worry about it at all.
HARLOW: Good. Good to have an example for all of us.
OTTER: Do exactly what you're doing. Yes.
HARLOW: Ryan, your question comes from Julia in Atlanta. And Julia writes, "I'm newly married. My taxable income is $50,000 and my husband's is $275,000. Can I contribute to a Roth IRA under my name if we file taxes jointly? What if we file separately?"
MACK: Well, filing jointly, obviously the question is -- the answer is no. $166,000 or less for jointly filing, you're eligible from $166,000 to I believe it's $179,000. It phases out at $179,000 plus. You are not eligible for contribution. If -- for individuals, if she's filing by herself, $107,000 below she's eligible. $107,000 to $122,000. It phases out at $122,000 or higher. You know, she's not eligible.
The biggest question here is making sure they sit down and talk with each other about their finances. That's a big, huge discrepancy of income. How much is he going to contribute to the bills as opposed to what she's going to contribute. They're newly married. A lot of conversations that need to be had right at this point. So it's great that they're having this conversation.
HARLOW: Or before you walk down the aisle, right?
MACK: Exactly.
HARLOW: That's pretty important.
Thank you, guys, very much.
And if you have a question you want answered by our experts, just send us an e-mail any time to cnnhelpdesk@cnn.com.
(END VIDEOTAPE)
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MALVEAUX: You've been sounding off on our "Talk Back" question. Carol Costello is back with some of your responses.
Hey, Carol.
CAROL COSTELLO, CNN CORRESPONDENT: Oh, FaceBook page was on fire. The "Talk Back" question today, is the Tea Party hurting or helping the country?
This from Dennis. "The Democrats and neo cons are caught with their pants down and the Tea Party is the only thing stopping them from having the ability to bring another bailout to the Congress."
And from Karen. "Hurting - those people are idiots starting with Michele Bachmann. They don't understand the stakes so they've decided there isn't any danger to the economy. They are going to destroy any fragile recovery."
This from Tim. "They are hell bent to take this country down just to make Obama fail and prevent his re-election. The Teabagger party is just a bunch of racists and bigots with no clue how democracy and taxation works. And they're taking the good part of the Republican party down with them. Be careful what you wish for. Gone in 2012."
This from Fran. "The Tea Party is doing nothing to help anything. They think they know what's good for the American people, but in truth all they what is their own way and the rest of American be dammed. Oh, wait, that sounds like all of Congress, too."
And this from Paul. "Definitely not helping. In fact, there is no progress because of them. Though they are doing a good job holding the whole nation hostage."
Thank you for your comments. Continue the conversation, facebook.com/carolcnn. Again, thanks. Suzanne will have more right after this.
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MALVEAUX: When you hear the words "computer hacker," they're usually associated with something negative, like theft identity. But CNN's Dan Simon talks with a hacker with a different story.
(BEGIN VIDEOTAPE)
DAN SIMON, CNN SILICON VALLEY CORRESPONDENT (voice-over): Jeff Moss has been a self-proclaimed hacker for more than 20 years. When he was 13, he acquired a device like this and figured out how to make free long distance phone calls from any line.
JEFF MOSS, HACKING PIONEER: You can do it from home. You can do it from a pay phone.
SIMON: It was called phone freaking.
MOSS: Back then the phone network was the biggest network. I mean that was the biggest computer network. It was the most reliable. It was the most robust. It was the most interesting. And you could issue commands to the phone network and it would do things.
SIMON: But as he came of age in the '90s, he realized people like himself could earn a real living by helping companies protect their networks as they started storing valuable information on the Internet.
SIMON (on camera): So as soon as the company started putting, as you put it, real assets on there, that's when --
MOSS: That's when everything changed. I think a lot of people were just so stroked, so excited that they could now do this for a living, that they went that direction.
SIMON (voice-over): In Moss' mind, that represents the vast majority of hackers. People with valuable skill sets doing work for the greater good.
MOSS: Good hackers think on both sides. How would you attack, how would you defend. And the debate is, how can you become a good defender if you don't know how to attack? You know, how can you be a good police officer if you don't know how the criminals thing?
SIMON: Moss' evolution is not unlike other well-known hackers who have taken their considerable skills to legitimate workplaces. Case in point, Sean Parker, the cofounder of Napster, the network that allowed consumers to download music illegally for nothing. Parker is now better known as the first president of FaceBook, helping Mark Zuckerberg launch a global phenomenon.
Then there's George Hotz.
GEORGE HOTZ, IPHONE HACKER: This here is my personal cell phone and the world's first unlocked iPhone.
SIMON: The wonder boy who drew the ire of Apple and AT&T by figuring out how to unlock an iPhone and allow it to be used with other phone carriers. The young prodigy himself is now working at FaceBook.
MOSS: When I think hacker, I think that's a adjective. You know, it describes a skill set.
SIMON: As for Jeff Moss, he went on to found Defcon, the largest annual hacking conference in the world that brings computer professionals from around the globe to discuss Internet security. And he's helping the U.S. government keep its network safe as a member of the Homeland Security Advisory Council.
MOSS: Popular media borrows the term hacker to describe somebody who's very clever with their use of computers and it started taking on this negative connotation. The public has a negative connotation of hackers. That's fine. You're not going to change that. That's cemented in people's minds. But to people who are involved in the area, hacker still means its original purpose.
SIMON: And that, he says, means doing some digging to understand how the technology actually works.
Dan Simon, CNN, Seattle.
(END VIDEOTAPE)
