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McCain's Big Endorsement; Animal Cruelty Claims Led to Beef Recall; Credit Repair Scams

Aired February 19, 2007 - 10:00   ET

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

JOHN ZARRELLA, CNN CORRESPONDENT, (voice over): And that may not help McCain. Connie Morales is from Colombia. She was raised in New York. Orlando is home now. Morales has always voted Republican. Not this time. The economy, not immigration, turned her away. In fact, she doesn't have much sympathy for illegal immigrants.
CONNIE MORALES, LATINO VOTER: We don't do much because we have a hard time trying to get here. We have to get in line. We have to get the papers. We have to get visas.

ZARRELLA: The message from Hispanics to John McCain -- we are like other Americans. One size does not fit all.

John Zarrella, CNN, Orlando, Florida.

(END VIDEOTAPE)

BETTY NGUYEN, CNN ANCHOR: Well, good morning, everybody, on this Monday. I'm Betty Nguyen.

T.J. HOLMES, CNN ANCHOR: And I'm T.J. Holmes, sitting in here today for Tony and Heidi. We keep you informed here in the CNN NEWSROOM all day long and here is what's happening on the rundown.

NGUYEN: Bush on board. The former president throws his support behind front-runner John McCain. The endorsement live in just minutes.

HOLMES: And burgers that could make you sick. What you need to know about the record beef recall.

NGUYEN: Also, tornado alerts in the south right now. One hard- hit Alabama town cleans up today. It is Monday, February 18th and you are in the CNN NEWSROOM.

HOLMES: Well, door to door searches for people that may be trapped in the debris of a major tornado. The storm ripped through Prattville, Alabama. About 30 people were injured. Two hundred homes and businesses destroyed. Power was knocked out to thousands. But no deaths to report here.

Also in the Midwest, snow and freezing rain were the issues there. Parts of Missouri and Wisconsin got up to 10 inches. Heavy snow forced Kansas City International Airport to close for almost six hours. NGUYEN: Well, let's take a look at the weather today and where it is striking because, indeed, there are some serious situations that we need to be watching today. Jacqui Jeras is on top of all of it and she joins us now.

Hi, Jacqui.

(WEATHER REPORT)

HOLMES: And, of course, folks, when the weather becomes the news, remember, send us your I-Reports. Go to CNN.com and click on I- Report or type ireport@cnn.com to your cell phone. We appreciate all that help and all the pictures we always get, but, please, stay safe as you're collecting that stuff.

NGUYEN: The road to the White House. Yes, kissing babies may make for good photos, but the real clout is all about the embrace from other power brokers. Two endorsements to tell you about today.

First, the Republicans. This hour, former President Bush will back John McCain. Bush was Ronald Reagan's vice president. And that can bolster McCain's claims to be a Reagan Republican.

Now to the Democrats. Barack Obama has met with former rival John Edwards. He's reportedly torn about whether to endorse Obama or Hillary Clinton. The former first lady is blitzing Wisconsin today, site of tomorrow's presidential primary. Also going to the polls tomorrow, voters in Hawaii, where Obama was born and spent most of his childhood.

Also stumping in Wisconsin today, Republican long shot Mike Huckabee. He continues to ignore GOP calls that he should drop out of the race.

Let's talk about the Reagan revolution. This hour, John McCain will cast himself as the heir apparent and he will have a key endorsement to bolster that claim. CNN's Dana Bash is in Houston and this big endorsement coming from the former president himself, Mr. Bush.

DANA BASH, CNN CORRESPONDENT: That's right, Betty. You probably see and hear some planes behind me. This endorsement is going to happen in just about a half an hour at an airport hangar here in George H. W. Bush's hometown.

Now George H. W. Bush, the 41st president, is the only living Republican president. So for John McCain to get this kind of blessing really is the ultimate symbol in the Republican establishment. Sort of the old guard, if you will, coming behind his candidacy, coming behind the fact that he does seem to be the presumptive nominee for the Republican Party.

Now, John McCain is somebody who, as you said, talks about the fact that he's a foot soldier in the Reagan revolution. And as you said, George Bush was his vice president. But it is interesting and noteworthy though that George Bush did have some problems, some big, big problems, Betty, with conservatives. Much like John McCain has right now.

If you remember back in '91-'92, when he was running for re- election, he made a pledge, no new taxes and he broke that pledge. And that is something that conservatives really never forgot. In fact, behind the scenes, recently, when McCain's advisors had been trying to convince reporters that McCain doesn't have that big of a problem, they've been saying, well, at least he doesn't have as big of a problem as George Bush did back in the early '90s. So it's an interesting sort of parallel there. Perhaps it will be interesting to see if the two men talk about it.

But big picture, what the McCain campaign is trying to do with this kind of endorsement ,today is trying to show, look, you remember last week McCain got to endorsement of the House Republican leadership. He got the endorsement of his bitter former rival. Well, today, he's going to get the endorsement of somebody who is very, very well respected right now in the Republican Party -- Betty.

NGUYEN: Dana, you talk about that no new taxes that was touted in the past. Well, it sounds like we're hearing a little bit of that again this time around and it coming from McCain.

BASH: That's right. Yesterday John McCain said, no new taxes. Pretty much -- it was pretty eerie. As soon as I saw that, of course, I'm not the only one who thought, wow, that sounds a bit familiar. Now, John McCain has pledged in the past, Betty, not to raise taxes because tax cuts -- and the fact that he didn't support President Bush's tax cuts back in 2001, that has been one of his many Achilles heels, if you will, with conservatives as he tries to go through the nomination process.

But he did seem to say it in a much more stark, much more direct way yesterday. So he is make that pledge, say no taxes. That's a big thing for a Republican or a Democratic candidate to say. You, obviously, hear it mostly from Republicans. It is something that George Bush, the man who's going to be standing with here, learned is something that maybe you want to be careful to say when you're run for president, or in his case, run for re-election -- Betty.

NGUYEN: And we'll see if it will come back to haunt McCain in the future. All right, Dana Bash joining us live. Thank you, Dana.

And you want to stay tuned for much more on the candidates as they criss-cross the country. Don't miss a full hour of CNN "Ballot Bowl." That is today at noon Eastern.

HOLMES: Now want to turn to that big beef recall, the biggest in U.S. history, brought on by an animal cruelty investigation. Judy Echavez has that story. But we do want to let you know, some of these pictures you're going to see in this story you might find a bit disturbing.

(BEGIN VIDEOTAPE)

JUDY ECHAVEZ, CNN CORRESPONDENT, (voice over): This disturbing video, shot by an undercover Humane Society investigator, tell as frightening story. The Humane Society says it shows workers at this Chino, California, meat packing plant abusing what are called downer cows, cattle no longer able to stand. Cows not supposed to be slaughtered for their meat.

MICHAEL MARKARIAN, HUMANE SOCIETY OF THE U.S.: The slaughter plant workers would kick them, jab them in the eye, ram them with the blades of a forklift and do anything they could to try to get these poor creatures to stand up so they could put them into the kill box.

ECHAVEZ: The Agriculture Department says the cattle were being processed for human consumption, a huge concern for USDA food safety inspectors. Hallmark/Westland Meat Packing is putting 143 millions pounds in raw and frozen beef. The company supplied beef to some fast food chains and the Federal School Lunch Program in some states. The secretary of agriculture issued a statement saying, "I am dismayed at the inhumane handling of cattle that has resulted in the violation of food safety regulations at Hallmark/Westland Meat Packing Company. This action is necessary because the plant procedures violated USDA regulations."

MARKARIAN: Because these downer cattle are more likely to carry mad cow disease, salmonella, E. Coli, it's a food safety risk, as well as a humane handling issue.

ECHAVEZ: The USDA says it has found no cases of illness related to the meat and stress the risk to people is, "remote." Hallmark/Westland did not return CNN's phone calls, but on their Web site the company posted a statement: "I want to reassure our customers and consumers that our company has met the highest standards for harvesting and processing meat under the Federal Meat Inspection Act."

(END VIDEOTAPE)

HOLMES: And Judy Echavez joins us now live from Chino, California, outside of the plant.

All right. We've got a federal investigation that's supposed to be happening. What can we expect from that?

ECHAVEZ: Well, the USDA says this is an ongoing investigation. Two former employees who have been fired are facing animal cruelty charges. And so far no charges have been filed against this company. CNN has put out a call to Westland/Hallmark this morning and they have not returned our messages so far.

HOLMES: And, Judy, of course, folks will be concerned. People hear this is the largest beef recall in U.S. history. People are eating beef day in, day out. They've got plans to have beef for dinner this evening. So what should people do if they spot some of this stuff? And, of course, if they've already eaten it, I guess nothing you can really do about that.

ECHAVEZ: Well, that's a good question. You know, most of this beef went out to distribution centers in bulk. And besides the National School Lunch Program, the meat company supplied beef to the Federal Food Assistance Program to feed the needy and the elderly. Now two fast food chains, Jack in the Box and In-N-Out have stopped serving the beef. Meantime, the USDA wants to reiterate that no illnesses have been linked to this newly recalled beef and very little risk is associated with this beef.

HOLMES: All right. So far so good on that front. Judy Echavez out there in Chino, California, for us.

Thank you so much, Judy.

NGUYEN: Well, Paul McCartney and Heather Mills proving that love isn't all you need. Nope, there is also a big thing called money. That's right. They've been in court for a week hashing over their bitter divorce and how much of McCartney's fortune should go to Mills after their four-year marriage. But they weren't able to come together, shall we say. So now a judge will come up with a settlement and that could still take several more weeks.

HOLMES: Well, also in the headlines this morning, a plot, cover up and murder? Mohammed al Fayed accusing the British royal family at the inquest into the 1997 death of Princess Diana. Yes, investigations are still going on, folks. Al Fayed taking the opportunity to air his theory that his son, Dodi, and the princess were murdered to keep them from getting married. He called Prince Philip a racist and a Nazi and accused him of a cover-up.

NGUYEN: Still ahead, a safety net for a nation. President Bush launches an international strike on tiny killers. They attack while their victims sleep. We have the story next.

(COMMERCIAL BREAK)

NGUYEN: Welcome back, everybody. I'm Betty Nguyen. And you are in the CNN NEWSROOM.

A big booster for John McCain. A former president gets on board the straight talk express. And we have a live news conference ahead right here in the NEWSROOM.

(COMMERCIAL BREAK)

NGUYEN: President Bush is Africa and on the offensive against deadly malaria. CNN White House correspondent Ed Henry is traveling with the president and he's in Dar es Salaam, Tanzania, with more on the president's trip and his promised aid.

A lot of aid to be talked about during his trip -- Ed.

ED HENRY, CNN WHITE HOUSE CORRESPONDENT: That's right, Betty. And the president is all about trying to tout humanitarian successes here on the ground and he's also trying to make the case that his legacy should not just be about the Iraq War. He toured a hospital today where he was getting a close look at the $15 billion that has actually been spent because of his program battling HIV/AIDS.

Also, he went to this factory where they make mosquito nets, as you noted, trying to battle malaria, another disease that takes about every 30 seconds there's a child here in Africa who dies because of malaria. These mosquito nets try to prevent the bugs from biting children. Mr. Bush said he's trying to step up this program even more.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Today I'm pleased to announce new steps in the bed net campaign. Within the next six months, the United States and Tanzania, in partnership with the World Bank and the Global Fund, will begin distributing 5.3 billion free bed nets. This ambitious nationwide program will provide enough nets to protect every child between the ages of one and five in Tanzania.

(END VIDEO CLIP)

HENRY: Now despite the success, there are also some major problems in Africa that the Bush administration is trying to confront. For example, tomorrow Mr. Bush will be in Rwanda. Of course, the site of that horrific genocide in 1994. That's likely to spark more questions to the president about why the U.S. is not doing more to deal with what he's already labeled genocide right now in Darfur -- Betty.

NGUYEN: Well, let's talk about the violence in Africa because Secretary of State, Condoleezza Rice, is in Kenya. Any progress on that front?

HENRY: No real progress yet but, you're right, the president dispatched the secretary of state today to Nairobi. She met with Kofi Annan, the former U.N. secretary-general, as well as other officials. They're basically trying to broker a power sharing agreement that they hope will end that post-election strife -- Betty.

NGUYEN: And let's talk about politics for just a second because Barack Obama has a huge following, even over there. And I've heard his name come up with a few times. What kind of reaction have you been hearing?

HENRY: Well, it's interesting, native son, because his father was from Kenya. But here in Tanzania, there's also a lot of excitement. I was at a local fish market just in the last couple of hours and some people were saying they don't speak English when they saw the CNN microphone, but then said Obama, Obama and expressed excitement, as if that was the only word of English that they knew. In fact, Mr. Bush's motorcade today in Tanzania passed some signs that said Obama '08.

So there's clearly some excitement here on the ground, even if they can't vote for Obama. The excitement, I think, is coming from the fact -- some of the people I interviewed said basically because of the abject poverty here, the minimum wage is about $119 per month, $119 per month for the minimum wage, they think if there's a president in America who has African roots they'll help Africa even more than Mr. Bush has -- Betty.

NGUYEN: All right. Obama with some global reach there. Ed Henry joining us live from Tanzania today. Thank you, Ed.

HOLMES: I want to tell you information we're just getting in here about a refinery explosion that's happened in Big Spring, Texas. The reports there. Big Spring a little bit outside Dallas. A little ways outside of Dallas. But Big Spring, Texas.

We don't know of possible injuries involved and don't know about a fire possibly burning at this refinery. But the word there from Howard County sheriff's dispatcher is that, in fact, and this is what they quoted, it's telling the "AP" is, "all I know is that it blew up," quite simply is the word from a dispatcher there telling the AP. About 170 people employed at this Alon USA refinery.

Alon USA is the name of the place that owns this refinery. We don't know, again, about possible injuries. And actually Big Spring, I need to make a correction here, a little ways outside Dallas. A ways away. It's about 280 miles west of Dallas to be more precise there.

But we do know about an oil refinery explosion. We are trying to get more word, more pictures in to us possibly as well about what has happened there. But no word just yet of injuries. But we are working that story. We'll bring you more details as they come in to us here in the NEWSROOM.

Also, we need to turn to Pakistan now where they are counting votes right now in a high-stakes election over there. They're choosing a new parliament. And, of course, that is a major step expect towards democracy after eight years of military rule under President Pervez Musharraf. Musharraf, of course, is a key Washington ally. His political future may hang in the balance on these elections. Security for today's voting was extremely tight. The balloting was delayed several weeks, of course, after opposition leader Benazir Bhutto was assassinated.

NGUYEN: Afghanistan is seeing some of its worst violence since the fall of the Taliban. Police say a suicide bomber killed at least 35 civilians today at a market in the southern city of Spin Boldak near the border with Pakistan. Police say the bomber was targeting a Canadian military convoy. Now that attack comes one day after more than 100 people were killed in a suicide bombing outside Kandahar. Officials say the bomber targeted spectators at a dogfighting match.

HOLMES: Repairing your credit. That's a good thing, right? Well, not if you fall prey to scams. Gerri Willis has the warning signs for you.

(COMMERCIAL BREAK)

HOLMES: That music can only mean one thing, time to talk to Gerri Willis. She's going to be talking about banks, of course, making it harder to qualify for loans and now we've got a warning that some companies preying on people who actually want to clean up their credit. And there she is.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR CORRESPONDENT: Hey, T.J.

HOLMES: The talented and lovely Gerri Willis.

WILLIS: I thought it was Saturday for a minute there.

HOLMES: Yes, it threw me off this morning as well, Gerri. But, no, Monday morning here. We are filling in. So good to see you. Glad to be able to talk to you here live.

WILLIS: Good to see you.

HOLMES: If it's not one thing, it's another. You've always got to be on the lookout. Somebody's always after you. So tell us how this scam works now.

WILLIS: Yes, we've got a scam we want to warn people against here. Complaints against credit repair companies. They've been rise for three straight years. Increasing more than 38 percent since 2004. And you've probably heard about these guys before. They have ads on the radio, TV, newspapers. You might have gotten something in the mail.

Now, in some cases, consumers pay these companies large fees up front and in return these companies promise to erase any blemishes on your credit records. They tell you they'll get you new Social Security numbers. And for some clients, they say, hey, we'll allow you to piggy back on somebody else's credit record.

But listen up, nobody can remove accurate and timely negative info from your credit report. And it's almost impossible to get a new Social Security number. Bottom line here, anything a credit repair company can do legally is something that you can do for yourself free -- T.J.

HOLMES: I was just about to ask you. You can get a new Social Security number. I didn't know that.

WILLIS: Well, no.

HOLMES: You can't. Yes, that didn't sound right.

WILLIS: No, that is the one thing that's very, very difficult to do. And it's probably -- even if you are having problems, it's not something you want to do because it creates more problems than it solves. But if you want to get negative info off of your credit report, you go about that an entirely different way. You have to work hard to clean up your credit record.

HOLMES: Yes, and a legal way as well.

WILLIS: Correct.

HOLMES: Also, tell us here, people, we always have rights, the consumer does.

WILLIS: Well, right. If you respond to a credit repair offer, hey, guess what, by law, you should be provided a copy of your consumer rights. It's just a one-page document and it explains what you are entitled to. You have the right to cancel a contract with any credit repair organization for any reason at all within three business days from the date the contract was signed. So be sure you get that.

HOLMES: All right. Also, what are some of those things that should jump out at you besides somebody offering you a new Social Security number. Some of the red flag, I guess, if you know something is awry.

WILLIS: Well, if the credit repair company doesn't tell you your legal rights, they don't give you that one pager, big red flag. Don't trust a company that advises you not to contact the credit bureau directly. And make sure you don't pay for any services up front. Now before you do business with any credit repair company, check them out at Better Business Bureau at bbb.org. The devil's in the details here. You really have to check them out.

HOLMES: All right. And some people out there -- we're telling people the things to watch out for but some people, of course, they need help and they want to repair their credit. What are some of the legitimate things, I guess, you can do?

WILLIS: Well, a better option. If you do have a credit problem, check out Consumer Credit Counseling Services. Now this is a non- profit debt counseling company. You'll be able to get counseling for a low fee or maybe even free. Some of the services provided may include working out a payment plan with lenders, as well as guidance and advice to help consumers make more financially sound decisions.

To find an office in your area, all 1-800-388-2227, or you can go on the web, nfcc.org. And, of course, if you have any money questions, e-mail them to us at toptips@cnn.com. We love hearing from you.

HOLMES: Yes, a new Social Security number. I would have had a new one every year since college if that was the case.

Gerri Willis -- Gerri, we appreciate you. Good to see you.

WILLIS: My pleasure.

NGUYEN: See, that's why we have laws against it, T.J..

Let's take you live now to Houston where John McCain is receiving a major endorsement from the former President Bush. Take a listen.

GEORGE H. W. BUSH, FORMER U.S. PRESIDENT: And at this critical time in history, the key point I want to make is, the United States of America cannot be permitted to falter. Part of our Republican create (ph) is a prevailing sense of duty and in the coming election we do not have the luxury of taking a pass on our unique role and responsibilities in the world. And the indisputable fact that unites the greatest number of Republicans, the most independents and many good Democrat as well, is the fact that no one is better prepared to lead our nation at these trying times than Senator John McCain. Of course, having been a candidate in both the losing and winning effort for the GOP nomination, let me stress that I have not come here to tell any other candidate what to do. A very wise man once said, influence is something you always have until you actually try to exert it. Besides, my friend Bob Mosbacker (ph), right here, where is he? There he is. Can tell you that admitting to my own defeat in 1980, even after it was apparent to the rest of our team, was very tough for me. It was a hard thing to do when you've been working hard yourself.

After so much time and exhaustive effort by so many friends, it can take a while for any candidate to read the handwriting on the wall. And that certainly was true of me. But as someone who also helped lead our great party at the RNC and later as president, I believe now is the right time for me to help John in his effort to start building a broad-base coalition it will take for our conservative values to carry the White House this fall.

His character was forged in the crucible of war. His commitment to America is beyond any doubt. But most importantly, he has the right values and experience to guide our nation forward at this historic moment. And so I am very proud to endorse John McCain for the presidency of the United States of America. Few men walking among us have sacrificed so much in the cause of human freedom, and I am happy to help this remarkable patriot carry our party's banner forward. Thank you. All yours.

SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: Thank you very much. Thank you very much, Mr. President. I'm deeply honored by your support and your friendship. I'm deeply appreciative of the enormous service that President Bush, and Barbara and the entire family have rendered to this country.

President Bush's service to this country goes back, obviously, to World War II, and that's where President Bush and I have something in common, in that -- actually two things in common. One is that we were both naval aviators, and the other is that we were both shot down. I won't pursue that line of conversation any further, except to say that I'm very proud, I'm very proud to be in the presence of president and Barbara Bush anywhere and any time, two people who have devoted their lives to the service of this country. And I believe that his endorsement and sign of support honors me. And I also think it's very helpful in continuing our effort to unite our party.

In conversations I had with President Bush, he made it very clear that we as a party must unite, and move forward and attract not only our members of our own party, but independents and the so-called Reagan Democrats. I think that President Bush's endorsement today honors me. I believe that it'll help us enormously in that process of uniting our party and moving forward. And again, I've had the pleasure of knowing, and watching President Bush for many, many years.

He served this country as the head of the CIA, as the chairman of our party, as vice president and as president, and there's very few Americans who I know who have served with more honor and dignity and I'm honored to have his support. And President Bush and Barbara, I can assure you that Cindy and I will do everything we can to make sure that you are proud and that your support of our candidacy will be something that you can look back on as having been the right thing to do. I'm very honored.

Questions? It's hard to hear. Let me just say, Kelly, that I would be honored to have President George Bush's support, his endorsement, and I would be honored to be anywhere with him under any circumstances. Having said that, obviously, as any president that follows one, has different views on particularly specific issues.

But I am proud of this president's strategy in Iraq. It is succeeding. The Democrats are the same ones who said it would fail. The Democrats are the same ones that after they said the surge wouldn't work, and it worked, that politically it wouldn't work, they are wrong. They are wrong. And we should start out this presidential debate by them admitting that they were wrong. And if we had done what they wanted to do, then we would have had al Qaeda succeed in Iraq.

So all I can say is that I'm glad to have campaigned hard for President Bush's election in 2000, his re-election in 2004, and I'm pleased to have had the opportunity to work with him on many issues. Are there issues we are in disagreement on? Of course.

NGUYEN: So we are listening to John McCain as he receives a major endorsement today, from George H.W. Bush, the former president, as he moves his campaign on.

And if you want to hear more on what is being said today, of course, we'll have much more on CNN's "BALLOT BOWL," which takes place at noon Eastern.

LEMON: We want to turn back to a story now we're watching out of Texas. An oil refinery there where there has been an explosion that has rocked this oil refinery. There are the first pictures we're getting in.

And once again, on so many stories, some of the first video pictures we get on reporting come from our I-Reporter on the scene. One of our I-Reporters with us now, Larry Bates, who I believe took this video. But you can see here folks what they're dealing with out there. We don't know about injuries possibly involved in this oil refinery explosion, but this is in Big Spring, Texas, some 280 miles out to the west of Dallas actually.

Alon USA is the Dallas-based company that actually owns this oil refinery, but we don't know if there have been any injuries or what exactly might have sparked this explosion. But Larry Bates on the phone with us who brought this video to us.

Larry, tell us, where were you? Did you actually hear this explosion, or you just come up on the scene and start taking pictures?

LARRY BATES, I-REPORTER: No, we were in the house this morning when it happened. It was about 8:20. And we heard the explosion, and I knew there weren't any clouds, so I knew it had to be the refinery.

LEMON: How far do you live from this refinery?

BATES: We're about three, three-and-a-half miles from the refinery, southwest of it.

LEMON: And describe to me best you can what it was like in the house when you heard this explosion. Did your house shake, just a big boom? What was it?

BATES: Yes, the house shook a little bit. It was a pretty good size boom. We heard a lady on the radio say she was in her car and she thought someone had ran into her car. She was closer to it than we were, though.

LEMON: Now what is around? Kind of describe for us -- it's there in Big Spring, Texas. What's kind of around this area? Is it an isolated area, not much around where this refinery is?

BATES: No, it's right on Interstate 20. It's on the north access road, just about a mile east of Big Spring.

LEMON: Right. Well, Larry Bates, again, one of our i-Reporters, appreciate you bringing this video to us. And where are you now actually as I talk to you here?

BATES: I'm at home.

LEMON: You're back at home. So I guess out of your window, still, you can see all this smoke going up into the air, is that right?

BATES: Oh, yes, it's drifting off to the northwest now.

LEMON: And as best as you can tell, was there still -- and we see here from your pictures, flames down here underneath where there's all the smoke is coming up. From what you can tell, the last you saw -- no, you said you're three miles away, maybe can't see flames. But was it still burning like that the last you saw it?

BATES: There's still a lot of smoke. I can't see the flames from where I'm at right now.

LEMON: All right, Larry Bates, again, we appreciate you and our I-Reporters all the time. Some of the first pictures oftentimes right there on the scene from our I-Reporter. Larry, we appreciate you.

NGUYEN: In fact, we have another I-Reporter to bring you the latest from what this person saw, have some pictures coming in from Diane Murphy. She joins us on the phone.

And, Diane, we're still looking at some of that video that Larry had shot. And the smoke is huge. You can still see the fire burning in that video. What did you witness?

DIANE MURPHY, I-REPORTER: It was a little after 8:15 and we heard a huge boom. It shook our house, popped some of our doors open, and we went outside. We live up on a plateau. We have a straight view into...

NGUYEN: It actually popped some of your doors open?

MURPHY: Yes, it did. We thought someone hit our house or something crashed nearby. Pretty big boom.

NGUYEN: And how close are you to this refinery?

MURPHY: Oh, we're about a mile and a half to two miles.

NGUYEN: Goodness. And it still had enough power and impact to pop your doors open. Any windows shatter?

MURPHY: No, no, I haven't heard about closer in, but I -- it was pretty loud boom, pretty rough.

NGUYEN: Well, what are you hearing from people around you as to what happened here at this refinery?

MURPHY: We have not heard anything, and that is -- we want to know also. We have not heard anything.

NGUYEN: And you're about a mile away. Can you still see the smoke billowing into the air?

MURPHY: Yes, it is really billowing up and up until just a few minutes ago we could still be flames. They may still be going on. I'm not outside right now.

NGUYEN: I'm reading from wire reports that plant employs about 170 people. Do you know a lot of people who work there?

MURPHY: Yes, we do know some people who work there, and we are concerned. After 8:00 we're wondering how many people were in the refinery.

NGUYEN: Yes, I imagine. And I also imagine with this much smoke and the fire possibly still burning at this hour, they have emergency crews, emergency crews on the ground. Have you been contacted? Has there been any kind of evacuation as far as it comes to breathing in some of the gasses that have been let into the air?

MURPHY: Well, it is a concern. We talked to our neighbors. The wind is not blowing toward our home. It's blowing toward the other side of town, the northwest part of town. But it is pretty black smoke. And we can smell some of it up here. So I would imagine it could be a problem.

NGUYEN: But at this point you haven't been told of any evacuations?

MURPHY: No, we have not.

NGUYEN: Have you ever seen anything like this lap at the refinery before?

MURPHY: No, we've had small fires there, maybe even small mishaps. But nothing like this, nothing.

NGUYEN: Goodness. All right. Diane Murphy joining us today, just living a mile outside of the refinery, that you can see there in this i-report video is on fire and smoke billowing into the air. Diane, we appreciate your time.

Again, this is in Big Spring, Texas, about 280 miles west of Dallas. This explosion really pretty much rocked an oil refinery this morning. To give you a little bit more information as to what this refinery does, it's the Alon USA Refinery. And it makes petroleum products, including gasoline, diesel, jet fuel, petro chemicals, asphalt. So you can see why a lot of this is very combustible. And there's a lot of concern as to exactly what happened and when are they going to get this under control.

HOLMES: You just mentioned there, you talked to one of our I- Reporters about possible evacuations, if anybody -- anything hazardous up there in the air that officials think folks need to get out. Well, some of that has to do with, I guess, where this smoke might be going. We see here in the pictures it's drifting off. And our Jacqui Jeras keeping an eye on the conditions there, on the weather and the wind conditions, about possibly where this smoke is headed.

What's going on in this area right now as far as wind?

JACQUI JERAS, AMS METEOROLOGIST: Well, they're extremely calm right now, T.J.. You can really see from that picture, if we can bring it back up, the vertical extent of it. It just kind of goes straight up into a plume and it's just kind of hovering there. There you can see it.

Now, we checked the wind and the temperature profiles up through the atmosphere and there's a little bit of what we call an inversion in place which means this is going to just kind of sit here and most of the smoke and any chemicals that might be in the air are going to be hovering down near the surface. We do expect those winds are going to start to pick up, though, a little bit later on this morning. And they should be southwesterly. So that would blow any smoke to the North and East part of town.

Here you can see a map of where the area is. It's about 250 miles to the West of Ft. Worth. It's kind of near the Midland area. And we'll zoom in and show you the refinery. And this happened just North of interstate 20 and I-20 is closed in this area. So, the good news with all of this, at least right now, is that we're not expecting this to be pushing very far away from the site itself. We expect that that will happen, though, progressively throughout the morning. So it's just kind of hovering in that area and not moving a whole heck of a lot -- T.J.

HOLMES: Were there not much wind to carry this off, I guess that's a good thing so it won't affect, maybe, a wider area. But still, you say it's sitting there, it's just going to sit close to the surface.

JERAS: Yes, exactly. And that can really bring the concentrations of it very high. Normally it would disperse and spread out throughout the atmosphere, but then the concentrations of the smoke and the chemicals will be much thicker here because of that.

HOLMES: Wow, all right. Our Jacqui Jeras, keeping an eye on conditions today. We appreciate that update.

NGUYEN: And we're seeing it burn out in that video. And a lot of times that's what they have to do with these oil refinery fires, just let it burn out, which means it could take a while because, T.J., in reading a little bit more about this company, the Alon USA, it produces 70,000 barrels a day. Again, it's a oil refinery plant. So this may be going on for quite some time.

And of course, we do invite you, if you are nearby and you have a camera or a camcorder, please do send your I-Reports in to CNN. We would love to see them as we get some more information as to what's happening on the ground there in Big Spring, Texas.

HOLMES: All right. Stay here. We'll have more I-Reports keeping an eye on this situation in Texas.

(COMMERCIAL BREAK)

HOLMES: We want to continue to follow this story we're seeing now out of Texas, specifically here in Big Spring, Texas, where there has been an explosion and there's a fire at an oil refinery there, oil refinery.

These are some new pictures we are seeing new pictures from one of our I-Reporters, Suzy Steinberg, in particular, sending us these. With -- certainly a different angle. We saw a couple of other pictures from a couple of other I-Reporters. This seems to be from a different distance. And a heck of a cloud of smoke going in the air there over Big Spring, Texas.

But, to let you know folks, just to update you what's happening here, oil refinery explosion. Don't know what caused it. The thing is owned by Alon USA, which is a Dallas-based company. This particular refinery, however, is about 280 miles outside of Dallas, to the West. About 170 employees, we know of, of Alon USA. Don't know how many specifically would have been at this plant today. We don't have word of any injuries just yet. So hopefully we do not get those reports, but we are waiting as get more details about what's happening here.

Suzy Steinberg on the line with us. We appreciate you being an I-Reporter for us and bringing us these pictures. Tell us how far away you are as you were taking these pictures.

SUZY STEINBERG, I-REPORTER: We're about four miles away.

HOLMES: About four miles? Now, were you aware -- were you rocked by explosion as well, being four miles away?

STEINBERG: Yes, definitely. We were laying in bed and the whole house just shook. HOLMES: Four miles away and the whole house shook?

STEINBERG: Right. In fact, we're hearing reports that -- of a town that's 35 miles away, people in that part of the town also felt it. So, it was large.

HOLMES: Now it -- now what did you -- did you just step outside? Where is this picture being taken from, just right outside your door?

STEINBERG: Right, from my front porch. I grabbed the camera, I went out and took the pictures. And after the explosion, and there was this continued roar that just continued and continued. And it was -- it's pretty frightening.

HOLMES: You said there was a roar even -- after the explosion?

STEINBERG: Yes, for like something 20 minutes or so there was a roaring sound coming from it.

HOLMES: Now, tell us your -- folks who aren't familiar with Big Spring, Texas there, are a lot of people connected to, if you will -- a lot of people that work at this refinery. Is it kind of, in a way, kind of part of this community and something everybody is familiar with and people have worked at?

STEINBERG: Sure. Yes, it's a huge part of this community.

HOLMES: And now, have you lived here for quite some time?

STEINBERG: For about seven years.

HOLMES: Seven years? Anything like this in your recent memory has happened, big or small, any incidents there at the refinery?

STEINBERG: Not that I know of. No.

HOLMES: Has it -- is it always, as well, kind of a concern living next to a refinery, the potential for something like this to happen?

STEINBERG: Always, always a concern.

HOLMES: Always? But still, pretty good record as you say, at least the past seven years you've been there?

STEINBERG: Right, yes.

HOLMES: And, any word yet about having to get people out, any evacuations that you know of or anything like that?

STEINBERG: The last I heard they can't even get in there to look for people. We haven't heard anything.

HOLMES: All right. Our Suzy Steinberg, one of our I-Reporters. Suzy, we absolutely appreciate you and your efforts. Again, you all are so helpful, our I-Reporters, when stories like this happen. Some of the first pictures and the first people we have on the scene are our I-Reporters. So, Suzy Steinberg, we appreciate you.

And anybody else out there who has video, also still pictures, those digital pictures, whatever you may have, if you can collect those and send those to us, by all means we appreciate it. And thank you so much for helping us tell this story. That's at CNN.com. Just click on I-Report.

NGUYEN: Let's get to some business news now. A growing number of foreclosures is creating a sea of vacant houses and you'll never guess who is moving in. Susan Lisovicz is in the New York area. She joins us now with the latest on this story.

So, who is moving next door, Susan?

SUSAN LISOVICZ: Well, it's the homeless, sadly. It's a really sorry statement about where we are because in -- on any given night, vacant homes in many areas are as numerous, or even more so, than the homeless. And according to the "Associated Press," the homeless are taking advantage by becoming squatters.

Foreclosed homes have an advantage over the typically boarded up variety. They're usually in much better shape, often have working heat, lights and running water. Homeless advocates quoted by the "AP" say the homes are clearly an inviting option. Cleveland, Ohio, there about 4,000 homeless on the street on any given night and about 15,000 vacant homes there, due to foreclosure -- Betty.

NGUYEN: Well Susan, it's definitely a reprieve against the winter and the bitter cold that a lot of the homeless people face. But, on the other hand, there are plenty of people who are saying, you know what, this is creating a serious problem.

LISOVICZ: Well, it's creating more problems, Betty. First of all, it should be said, it's against the law. It can lead to vandalism. When the utilities are turned off the homeless squatters often use candles which creates a real fire hazard. And critics worry the homes eventually become targets for drug dealers, prostitutes and eventually the police. So obviously that's a story that we'll be following.

In the meantime, of course, I'm uptown because, well, Wall Street is closed for the President's holiday, last three-day weekend was Martin Luther King, Jr. Day, and we saw massive sell-offs in Europe and Asia on that day. That turmoil prompted the Fed to take emergency action, cutting its key interest rate by three quarters of one percent.

So far, trading is much tamer this time around to overseas. In general, February has been calmer than January was. Back in January the Dow lost more than 4.5 percent. So far, the Dow industrials are off by less than 2.5 percent. Last week, the Dow was up one and a third percent for the week.

Although there's still lots of uncertainty and concern about the economy. We've got a lot of data later this week. Everything from retail sales to more housing figures, and of course, we'll be on top of that, too. Betty?

NGUYEN: So, Wall Street gets a day off. You, my friend, did not.

LISOVICZ: I in the news business, Betty, I'm in the same boat as you.

NGUYEN: Exactly, you see I'm sitting here today, too. Thank you, Susan.

HOLMES: We -- now I want to turn to new information we're getting in in Iraq about a mortar attack that has taken place there somewhere in and around the area of the Baghdad International Airport. Our Barbara Starr, Pentagon Correspondent, actually in Iraq, is on the line for us.

Barbara, what can you tell us about this?

VOICE OF BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, T.J., we've been traveling through Iraq today with Admiral William Fallon, the four-star Commander of the U.S. Central Command, and it was a couple of hour ago when we were trying to land by helicopter in Baghdad and we came to find out that this rocket and mortar attack was underway on the ground.

We circled for some time, I have to the you, but were unable to land because of the firing on the ground. And so, tonight now -- and it is evening here, we have been diverted to Fallujah in western Iraq. We're going to try and make our way back into Baghdad at some point.

But obviously, due to security situation, we've sort of been asked not to say exactly how we're going to get back into the city, and when that's going to happen. Everyone, of course, here, Admiral Fallon and his entire traveling party fine, but it's a real indication of the security situation in the country. Everything's getting better except for those times which is -- when it is not getting better.

Apparently today their latest information we have, is all of this was due to 12 rocket and/or mortar attacks happening in the airport area, in the area of the international zone where, of course, U.S. military people stay and where we have spent last night with them. So we're in Fallujah. We're going to try and make our way back. We spent most of the day actually in western Iraq with the admiral looking at the security situation here.

Security is getting better. What we have been hearing throughout the day though from most Iraqis and even from the U.S. troops here, some of the top concerns are the basic fundamental services for the people here, power, electricity, fuel that sort of thing. Security is getting better, but tonight quite a situation in the international zone in the Baghdad airport area. We're going to try and make our way back into the city at some point in the very near future. T.J.?

HOLMES: Barbara, how often, I guess, do we see the Baghdad airport actually coming under attack? Is that often a target? It seems like we haven't heard -- . STARR: It is -- you're absolutely right. We have not heard about this for some weeks really. Earlier, a couple months ago, late last year, there had been a real rise in rocket and mortar attacks into the green zone. There had been a feeling that some insurgent teams had been trained to reach that area with great precision, to really target their weapons towards that.

But in the last several weeks with the security situation with them sending out U.S. troops into the city to really try and get a handle on security and clamp down on this insurgent activity, a lot of that had come under control. So tonight, people were pretty surprised to see 12 rounds, which again is the latest information here, get into that area.

You know, these are not precision weapons. So either they are, you know, lucky hits if you will, tragically to reach such a vital area, or somebody out there is awfully well trained to do it. That's the kind of thing they're going to be look for now.

HOLMES: All right. Our Barbara Starr, thank you so much for calling in. Thank you so much for that update. Our Barbara Starr there on the ground in Iraq, trying to get more what has happened on the airport. Official there's do tell us -- our Barbara Starr telling us about a dozen mortar rounds were fired there at the airport.

We're told at least six of those hit a housing complex at the international airport and that's where some of the family members, also of the employees of the airport actually work and some of the employees and their families actually live, in these temporary cabin there's. But also two people we know were killed. Ten others wounded in these attacks.

Most of those, we are told, were either employees or members of their families were either killed or wounded in these attacks. And also, the unfortunate news, sad to hear some of the mortars landed on a soccer field that's at this complex as well, and children were there at the time, playing soccer. At least three of them were wounded. Don't know the extent of their injuries.

But that is the word, the update there from these attacks that have happened now at the Baghdad International Airport which has not often been the target, has in the past, but still not something we hear about often.

NGUYEN: That's true. Also new this morning, a west Texas refinery rocked by an explosion and our I-Reporters are on the scene.

(COMMERCIAL BREAK)

HOLMES: Hello, everybody. You are with CNN. You are informed here. I'm T.J. Holmes.

NGUYEN: Yes, good morning, I'm Betty Nguyen. Tony and Heidi are off today.

HOLMES: We've got developments coming into the NEWSROOM. A lot of stuff going on this Monday, February 18th, Presidents Day. Here is what we have on the run down. That big fire, a big explosion to tell you about that's happened in west Texas at an oil refinery.

NGUYEN: We're gathering details on that, and we'll bring you the latest. Also, the booster club, moments ago former President Bush endorsing Republican front-runner John McCain.

HOLMES: Here's a heck of a debate that's going on. Should college students arm themselves in case there's a campus shooting? A gun debate live in the NEWSROOM.

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