Return to Transcripts main page

CNN Newsroom

Iraq War Commander Fields Questions; Dangerous Weather Situation Brewing in Texas; Police on High Alert in San Francisco

Aired April 09, 2008 - 10:00   ET

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


BRIANNA KEILAR, CNN, ANCHOR: Good morning. I'm Brianna Keilar.
TONY HARRIS, CNN, ANCHOR: And I'm Tony Harris. Stay informed all at the CNN NEWSROOM. Here's what's on the run-down for you. The Olympic torch hitting the streets of San Francisco today. Boy, that city bracing for rowdy protests.

KEILAR: For a second day, the Iraq war commander fields questions about strategies. Will Congress have patience for a pause in troop withdrawals?

HARRIS: How about this mix -- the floods, hail, tornadoes, the dangerous weather situation brewing in Texas today, Wednesday, April 9th. You are in the CNN NEWSROOM.

KEILAR: Planes hold from service, flights canceled. Expect more of the same today from American Airlines. Reporter Regina Waldroup of affiliate CLTV reports on the travel troubles from a new round of inspections.

(BEGIN VIDEOTAPE)

REGINA WALDROUP, REPORTER, CLTV: It's going to be another rough day for travelers on American Airlines.

UNIDENTIFIED FEMALE: They canceled our flight last night. My husband was on the phone all night trying to get other transportation. Finally got us on Delta but we have to stand in this stupid line.

WALDROUP: The nation's largest air carrier is yanking more planes out of service today to re-inspect wiring on its MD-80 jets. Stranded passengers are clearly annoyed.

UNIDENTIFIED FEMALE: I would guess that the FAA is the last resort to pull these planes out of the sky because they weren't getting cooperation from the airlines. These inspection process are not random.

WALDROUP: American operates about 2,300 daily flights. With more than one-third, using the MD-80. Well, this is the company's second bout with mass cancellations in less than two weeks, for failing to meet the wiring rules set by the FAA.

UNIDENTIFIED FEMALE: It is frustrating because you don't -- you want to go home. Especially after you have been out of town a while. And when you are stuck some somewhere, it's not fun. WALDROUP: The Gardners were on their way home to Tampa last night when they found out their flight had been canceled.

UNIDENTIFIED FEMALE: They put us in a hotel and they gave us cab vouchers and stuff like that. And they put news a hotel with hotel vouchers. They didn't give us food vouchers or anything like that.

(END VIDEOTAPE)

KEILAR: And again, that is Regina Waldroup of our affiliate CLTV. American says it is working to help those stranded passengers and the airlines said you should check its website for specific information about your flight.

HARRIS: Police on high alert in San Francisco today. They are gearing up for more protests. When the Olympic torch makes its way through the streets the U.S. demonstration against China's human rights record. And its grip on Tibet began yesterday with the torch arrived. Anglican bishop, Desmond Tutu led a massive rally.

(BEGIN VIDEO CLIP)

ARCH. DESMOND TUTU. NOBEL LAUREATE: By saying to you, Mr. President, George Bush, to all leaders of the world, for goodness sake, don't go to Beijing.

(END VIDEO CLIP)

HARRIS: San Francisco is the only U.S. stop for the Olympic torch. The relay ran into some angry demonstrators in London and Paris earlier this week just want to keep this on your radar this morning. The hearing, the progress report, being given right now on Capitol Hill to the House Armed Services Committee by General Petraeus and Ambassador Ryan Crocker. Just another quick note here, you can watch the hearing live if you choose to. Just go to cnn.com live.

If you care to watch the hearing as it progresses live. And just another quick note here. President Bush will be meeting with the General and the Ambassador tomorrow before the President speaks about progress in Iraq. That's a speech scheduled for tomorrow morning and we will, of course, carry for that you live right here in the NEWSROOM.

KEILAR: $3.34 a gallon. Oh, I feel your pain. I do. That is what you will pay on average to fill up your tank this morning. And AAA says prices jumped about a penny overnight to another record high. Just a month ago, drivers were paying a nationwide average of $3.22. It kind of feels like a bargain now, doesn't. Well, a year ago gasoline cost just under $2.80 a gallon. The good old days. Right, Tony?

HARRIS: Yes.

KEILAR: Well keeping a roof over your head, Congress diving into the mortgage crisis today. The Senate expected to vote this morning on a plan to give tax breaks to builders. It would also give credits to people who buy foreclosed properties. But the plan has opponents in both parties, including President Bush. The House meantime is working on alternatives. One would give tax breaks to first-time home buyers and another would let the FHA finance, re-finance mortgages rather for some people who are facing foreclosure and you can keep watching CNN. We've got our money team has you covered whether it is jobs, debt, housing or savings. You can join us for a special report. We call this "Issue Number One, the economy." And is on all this week at noon Eastern right here on CNN.

HARRIS: Desperation and anger sparking riots in Haiti.

(BEGIN VIDEO CLIP)

HARRIS: People furious about rising food prices faced off with United Nations troops at the gates of the presidential palace. The troops fired rubber bullets and tear gas. At least four people have died during rioting in the last few days. U.N. food supplies have been raided and stores ransacked. Look at these pictures. Pretty dramatic stuff. At least 80% of Haiti's population lives in poverty according to the CIA. Food and fuel prices there have risen more than 50% since last June.

Back on the campaign trail now. The presidential candidates return to campaigning after the Senate hearing on Iraq. Hillary Clinton holds a town hall meeting here in Pennsylvania. Singer Elton John performs at a fund-raising concert for Clinton in New York. Tonight, Barack Obama campaigning in Pennsylvania and in Indiana, he holds a town hall meeting in Melbourne, Pennsylvania this morning. He ends the day with a rally in South Bend, Indiana. The Republican nominee to be on the trail in Connecticut. John McCain meets with employees and a hedge fund in Westport this afternoon, later he attends the private fund-raiser in Greenwich.

What's our plan for Iraq? One day after Senator Clinton questioned the top U.S. commander in Iraq, we put our own questions to Clinton's foreign policy adviser and that's just ahead for you in the NEWSROOM.

KEILAR: Check this out. This is what some Texans woke up to, overnight. Strong storm brought rains, thunder and golf ball size hail, a tornado even. Touching down over an open field in Central Texas. No word on whether anyone was hurt there. But heavy rains and a river over its banks in south Texas is still rising. If you can believe that some people have made for higher ground. That of course is a good thing. We're talking flooding. We're talking tornadoes. I mean this is the story, it seems like, you know, it could have been yesterday or..

HARRIS: It is, rob will tell you is a pattern that we've been following for at least a month now. And the folks in the southern plains just can't get seem to get a break.

ROB MARCIANO, CNN, METEOROLOGIST: The only difference now, Tony, is a month ago we weren't quite into severe tornado season. So, now we are adding that to the mix. This is checked on the National Weather Service site out of Memphis. They have seven special weather statements that they posted on their website. From everything from flooding to this severe weather outbreak that's going to take place tomorrow.

Flooding today, though. Memphis south to Little Rock. Heavy rain here has been training over the same area. And this is the same area that's all the heavy rainfall the past couple of weeks. So, certainly not something that they need. Live shot from Memphis. Check it out. Suppose they are still wearing black after the night on Monday. Boy, that was a tough, tough loss, my friend. There you can see the M bridge. The Hernando de Soto Bridge, the Dolly Parton Bridge. Whatever you like to call it. WRED is our affiliate. Thanks very much, guys. You got some rough weather heading your way. Not just today but overnight tonight, actually tomorrow and into Friday morning.

All right, we shift the map towards west Texas. Look at this already firing up. We haven't even hit the heat of the day. And we got a severe thunderstorm watch that's in effect until 2:00 local time. And you can see these pockets of storms, these are super cell thunderstorms that are trying to develop. Typically they will do so when we get the heat of the day adding to the mix. There's so much energy in the atmosphere. So much spin coming out of the Rocky Mountains from this area of Low Pressure.

That we don't even really need that heat of the day. That tells you how strong the system is. Cold air with snow in the Rockies. This thing ekes out into the plains here tonight. We're already Starting to see that in the Texas panhandle. Throughout the day tonight, those storms will shift to the east. Some of these storms could have not just damaging winds and hail, not just tornadoes but we could have strong tornadoes that could be what the storm's prediction center is describing as long track. Meaning they are on the ground for miles and miles. And obviously the longer they are on the ground, the greater chance there are for --

KEILAR: so, you're best friend if you are in that area is your NOAA radio. Right, Bob?

HARRIS: Yes, right. Absolutely.

MARCIANO: And CNN.

KEILAR: And CNN, of course.

HARRIS: And Rob there in the severe weather center.

KEILAR: And Rob Marciano.

MARCIANO: Hi, Rob. Thanks, am. still to come the NEWSROOM this morning, the burglar meets the boxer. Boy, did he pick the wrong house.

UNIDENTIFIED FEMALE: He was pretty shocked, the look on his face was where do I run.

HARRIS: Oh, man, right hook for a crook in the NEWSROOM. (COMMERCIAL BREAK)

HARRIS: Dueling Democrats and the Pennsylvania primary. The vote getting closer, the race getting tighter. New poll numbers this morning from our Dan Lothian. He is with the CNN "Election Express" in Philadelphia. OK, then, what are the numbers telling us.

(BEGIN VIDEOTAPE)

DAN LOTHIAN, CNN, CORRESPONDENT: Well, Tony, first of all, you know, that Senator Clinton was always expected to do well here in Pennsylvania but senator Barack Obama has been pumping a lot of money to the state and it does appear that it's helping him. Both of the candidates are campaigning in Pennsylvania. This morning, they will be holding town hall meetings as they continue to fight for this critical stage. It's (enoyBark)ph has been pumping a lot of money into the state and does appear it is helping him. Both of the candidates are campaigning in this morning. They will be holding town hall meetings as they continue to fight for this critical state.

(END VIDEOTAPE)

HARRIS: It is not an earthquake but the ground appears to be shifting under Senator Hillary Clinton 's once solid lead in Pennsylvania. The latest CNN poll of polls shows Obama trailing Clinton by only six points, compared to the 11 points just last week. In this competitive race where both candidates are fighting to win over working class voters --

What we need now is a President who can work on behalf of ordinary Americans.

HARRIS: Senator Clinton seems to be relishing the challenge. Reminding union members in Washington of what she is fighting for.

(BEGIN VIDEO CLIP)

SEN. HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: You know what it is like to be told to go away, to quit, I know what that's like, too. We are fighting for what's right.

(END VIDEO CLIP)

LOTHIAN: The get the job done attitude is the theme of Clinton's five new TV ads now running across the state. She bumbles testimonials with popular Pennsylvania Governor Ed Rendell and Philadelphia Mayor Michael Nutter with a trip down memory lane, drawing attention to her father's Pennsylvania roots.

(BEGIN VIDEO CLIP)

SEN. HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: This is me in Scranton where my father was raised.

LOTHIAN: Pennsylvanians seem to be enjoying their moment in the sun. Voter registration is at near record highs, it's about 8.3 million. More than 200,000 new voters signed up this year alone. The biggest jump among Democrats.

PEDRO CORTEZ, PENNSYLVANIA SECRETARY OF STATE: Pennsylvania is going to be relevant in the decision of at least one of the two party nominations for the president. And I think that' what driving many Pennsylvanians to want to have their voices heard for this election.

LOTHIAN: Since January, more than 160,000 voters switch parties to take part in the upcoming Democratic primary. And in long time Republican suburbs around Philadelphia, like (inaudible) and Montgomery. Democrats now have the advantage in registered voters for the first time in decades.

It's been a gradual shift overtime that just accelerated in the last couple of weeks.

LOTHIAN: We're you surprised by it.

AL SCHMIDT, PHILADELPHIA Republican ARMY: I think the numbers were surprising.

LOTHIAN: Now Tony, you might remember there was this movement among consecutive radio, in particular Rush Limbaugh, to get Republicans to vote in Democratic primaries in order of sort of extend the process for the Democrats and disrupt the Democratic party. It's unclear whether or not that should play here. But a Republican official tells me the he doesn't believe that that's an issue especially in the Pennsylvania area. And he says that's something that he would not endorse.

(END VIDEOTAPE)

HARRIS: Yes, folks are smarter than that. Dan Lothian for us, in Philadelphia this morning. Dan, appreciate it.

LOTHIAN: Thank you.

White House candidates to put their questions to the top U.S. commander in Iraq. Now we have questions for the presidential campaign. You'll hear from all three camps here in the NEWSROOM and we're going to begin with Senator Hillary Clinton. She says staying the course in Iraq maybe irresponsible.

(BEGIN VIDEO CLIP)

CLINTON: I think it could be fair to say that it might well be irresponsible to continue the policy that has not produced the results that have been promised time and time again. At such tremendous cost at our national security and to the men and women who wore the uniform of the military.

(END VIDEO CLIP)

KEILAR: So what is Clinton's plan of action? For answers on that one, we turned her foreign policy adviser P.J. Crowley in Washington. P.J., thanks for being with us.

P.J. Crowley in Washington. P.J. thanks for being with us.

CROWLEY: My pleasure.

KEILAR: And your candidate, Senator Clinton, she is in support of a withdrawal but let's talk details here. How fast? How many troops coming home.

CROWLEY: Well obviously the first question is how many troops will be there if she's elected president. It looks like between 140 and 150,000. she has pledge rapidly to end the war and to begin a responsible but rapid withdrawal of (inaudible)

CHETRY: What does tat mean though - responsible but rapid. How fast as we talking?

CROWLEY: Well, I think, the first thing you ought to do is start, you know, start in a fundamentally different direction. She's going to bring most of those troops. She's going to shift some of those trips from Iraq to Afghanistan. She talked yesterday about the opportunity cost and the fact is in her minds that Afghanistan is far more closer linked to our long term security, the better up.

KEILAR: Yes, but P.J., is there any time table specifically that she's looking at. Are we talking months, are we talking years, are we talking continued presence in Iraq.

CROWLEY: Well, I think yesterday, she spoke about the fact that we're going to establish a strategic framework in our long-term relationship with Iraq and that should come and be fully debated in the Congress but we understand what it the long term nature of the relationship. It would be primarily political but put that in the table and sort that through. I think she probably distinguishes herself from Senator Obama while she does favor a rapid and responsible withdrawal from Iraq.

I don't think she favors setting a specific time table because as the general and the ambassador said yesterday, this is not going to be linear. So she's gong to shift for us but do so in a way that can relieve the stress on the military and shift our way of effort to Afghanistan.

KEILAR: But some critics might say that's just more of your hearing in these earrings with General Petraeus that their, isn't really - basically the things are kind of fuzzy that people aren't going to be committing to any time table even if there's a hypothetical situation of things are getting better in Iraq. Some critics might say that's some of the same thing. She's not talking about a specific time table.

CROWLEY: I think that's it. That's a realistic approach. Obviously she has favors, a dramatic and fundamental shift in course but how long that course takes, whether it's 16 months or something longer. I think she will have to access as we go through this.

Unlike the current situation, where we are now projecting a pause that will last through the remainder of the Bush administration. When she is president, she is going to dramatically shift course, again within s very sort period of time to bring troops home and then do that as rapidly but as responsibly as possible.

KEILAR: Are we talking about a full pull out of troops or are we talking about continued presence.

CROWLEY: Well, obviously, they are still going to be a long term interest that we have with Iraq, for example, to the extent that we have been successful in isolating Al Qaeda in Iraq. We can't afford to give them, you know, any ability to recover in Iraq like they have in Waziristan. So I think the nature of the long term, you know, it's a commitment that would have to be re-negotiated I renew.

KEILAR: But long term, P.J., we're talking about a military commitment. As massive military commitment of small military equipment, a small military commitment or are we talking about a monetary commitment here.

CROWLEY: I think perhaps a distinction to the Obama camp which, you know, I think Senator Obama has talked about, maybe have a military contingent to defend an embassy. I think we're going to have to access what the nature of the long term relationship is. We're going to keep forces in the Middle East. It is an area of strategic important that we'll have to be something that we assessors could go along. She's going to promulgate a dramatic change in course but obviously as president she is going to assess the long term nature and see what make sense for the United States over the long term.

KEILAR: All right. P.J., thanks so much for being with us. We appreciate it.

CROWLEY: Thank you.

KEILAR: P.J. Crowley, foreign policy adviser to Senator Hillary Clinton. And this reminder, we're talking this morning about the plan that each presidential hopeful has for Iraq. That's where we're beginning with, with P.J. right there. You're going to hear later from John McCain's camp, also Barack Obama's camp right here in the NEWSROOM the IRS deadline just days away and some harried filers will made mistakes. How to save yourself some trouble and money?

(COMMERCIAL BREAK)

HARRIS: And a live look now at the Eisenhower Executive Office Building. We're just moments away from the President signing the second chance act of 2007. A piece of legislation actually passed by Congress. Hello. The Second Chance Act actually gives grants to local governments and organizations to help provide literacy classes, job training, education programs. The idea is to try to break the recidivism cycle and to bring those rates down. When the President takes to the microphone, we will bring you that signing ceremony live right there in the NEWSROOM.

KEILAR: And we also want to head to Wall street. Check out the big board there. You can see the Dow down about seven points right now. The Nasdaq at last check guys, still the case, down seven as well. All right. Nasdaq down seven as well. We're going to be keeping an eye on this and we will be checking in with Susan Lisovicz at the New York Stock Exchange coming up.

HARRIS: The federal tax deadline now less than a week away for many of you that last minute rush can lead to costly mistakes. Don't make them! There she is. Listen to this right here.

GERRI WILLIS, CNN, PERSONAL FINANCE EDITOR: that's right. Don't make them. I like that.

HARRIS: Gerri, good to see you.

WILLIS: Good to see you, Tony.

HARRIS: Hey, what are the changes that people should be aware of this year?

WILLIS: Well, look, you know, take advantage of the new deductions. There aren't a lot but there is one you should know about it could lower taxes for millions of homeowners. This year for the first time households with adjusted gross incomes of $100,000 or less can deduct government and private mortgage insurance premiums from their taxes. Now, you know what this is? Borrowers who weren't able to put at least 20% down to pay - to get a new mortgage they have to pay mortgage insurance. If you have income of $109,000 you can take a partial ducks and you should know, you should know this could save you over $300 on your taxes.

HARRIS: OK. Here's the thing, we want to - we don't want folks to make mistakes. So, what are some of the things that people routinely forget to do?

WILLIS: Right. Well, you know the alternative minimum tax that dirty word. You know, so many folks having to pay that. Now, this is a separate tax system from the IRS. If you owe, AMT is going to be more than your IRSA. It's catching more and more people. If your deductions and taxes are so high that they wipe out much of your tax liability, it's a good change that you have to pay it.

Now, to find out if you owe this tax, up to you to do the calculations. If you've used computer for software, it will help you find out. It's easy to find, if you're preparing or return by hand, go to the IRS Web site at irs.gov and search for something like the AMT Assistant. Now this is a tool that can help you calculate whether you will be subject to the tax. Tony.

HARRIS: Gerri, what if I missed a tax break last year, can I circle back and claim it this year?

WILLIS: You bet you. Last year, the IRS offered a one-time refund of $30 to $60 per household if you had a telephone. Remember this?

HARRIS: Yes. I do remember it. WILLIS: Now, about a third of eligible Americans applied. As a result, there was $3.8 billion left on the table. You have some money sitting with the federal government, you should go get. Now, I f you didn't fill for this telephone excise tax. You can amend your 2006 tax return this year. Go to irs.gov for more info. You know, you're going to have to mail it in because she can't file electronically, at least not yet.

HARRIS: We talked about common deduction myths yet?

WILLIS; OK. I have some bad news here. If you are on of those folks who had to sell your home at a loss, you can't deduct that on your taxes. Unless it was a rental property and even then it is going to be kind of dicey. It is a personal loss. While people can deduct expenses for looking for a job, I know a lot of people are doing it, those expenses must exceed 2% of your adjusted gross income. For example, if you made $50,000 last year, your job expense was have had to have been $1,000 to take the deduction. Remember, any unemployment assistance you receive is counted as income and taxed.

HARRIS: Yes.

WILLIS: And keep in mind even if you earn a low income or maybe you didn't work at all, fill out a 1040 form to collect the $300 from the government. As long as your income totals at least $3,000 you are eligible for the rebate. The economic stimulus rebate, Tony. Don't forget that. I know it sounds like small sounds but at the end of the day, I really adds up.

HARRIS: I just don't want to leave coins on the table. I just... I can't. all right.

WILLIS: I appreciate that.

HARRIS: You are with me on this?

WILLIS: Yes.

HARRIS: OK. "Issue number one" today at noon, give us a preview before the big show. Don't forget to tune in at noon eastern. All this week we are gong to be talking about your number one issue, your job, your savings, your debt, your housing. We are even going to be talking to folks today, right in the in the middle of that important House hearing on the economic -- on the housing stimulus. What they're talking about.

Carol Malone is going to come out ad talk to us in the middle of that hearing and tell us what's going on.

HARRIS: Wow, FHA secured, correct?

WILLIS: That's, that's the administration's plan. The house, they have other ideas. We will tell you all about it.

HARRIS: All right, Jerri. I appreciate it. Thank you.

WILLIS: Thank you.

KEILAR: Tens of millions of dollars invested in the Beijing Olympics. Now protesters disrupt the Olympic torch relay. What is the fallout for American corporate sponsors?

(COMMERCIAL BREAK)

HARRIS: Bottom of the hour. Welcome back, everyone, to the CNN NEWSROOM. I'm Tony Harris.

KEILAR: And I'm Brianna Keilar in for Heidi Collins. We want to get straight now to President Bush.

HARRIS: He is about to sign the Second Chance Act of 2007, which focuses on stopping the cycle of crime. President Bush.

PRESIDENT GEORGE BUSH, UNITED STATES: I can't thank folks who care enough about a fellow citizen to offer their love and compassion. Through the acts of mercy, that compassion Americans are making the nation a more hopeful place, and I want to thank you all for joining us today. And I thank the members of Congress who have joined us as well.

Senator Arlen Specter, ranking member of the Judiciary Committee, Chairman Joe Biden, not of the Judiciary Committee but of -- foreign relations, but a key member of the Judiciary Committee, Senator Sam Brownback as well. So, we got three United States senators here, and I'm honored they are here.

Members of the United States Congress, Chairman of the House Judiciary, John Conyers, and ranking members Lamar Smith, I want to thank you for coming. I appreciate very much Danny Davis joining us as well -- bill sponsor. I want to thank Jim Sensenbrenner, and Bobby Scott, and Howard Coble and Chris Cannon. All good members. And all members who worked hard to get this piece of legislation here in timely fashion.

I thank the Attorney General and Judge Michael Mukasey for joining as well. Elaine Chao, thank for coming down Madam Secretary. Rob Portman, Former Director of the OMB, and all the supporters of the Second Chance legislation. Thanks for caring about your country. Thanks for working on this piece of legislation.

The country was built on the belief that each human being has limitless potential and worth. Everybody matters. We believe that even those who have struggled with a dark past can find brighter days ahead. One way we act on that belief is by helping former prisoners who have paid for their crimes. We help them build new lives as productive members of our society.

Work of redemption reflects our values, and also reflects our national interests. Each year, approximately 650,000 prisoners are released from jail. Unfortunately, an estimated two-thirds of them are rearrested within three years. High recidivism rate places a huge financial burden on taxpayers. It deprives our labor force of productive workers, and it deprives families of their daughters and sons, and husbands and wives, and moms and dads. Our government has a responsibility to help prisoners to return as contributing members of their community. This does not mean that the government has all the answers.

Some of the most important work to help ex-convicts is done outside of Washington, D.C., in faith based communities and community based groups. It's done on streets in small town community centers. It's done in churches and synagogues and temples and mosques. I like to call the folks who are engaged in this compassionate work members of the armies of compassion.

They help addicts and users break the chains of addiction. They help former prisoners find a ride to work, and a meal to eat, and place to stay. Men and women are answering the call to love their neighbors as they would like to be loved themselves, and in the process, they are helping prisoners replace anger and suffering, and despair with hate and hope and love.

The bill I'm signing today, the Second Chance Act of 2007, will build on work to help prisoners reclaim their lives. Now as it basically says, we're standing with you, not against you. First, the act will authorize important parts of the administration's prisoner re-entry initiative.

The goal of this initiative is to help America's prisoners by expanding job training and placement services, improving their ability to find transitional housing, and helping newly released prisoners get mentoring including from faith based groups.

Past three years congressional appropriations supported the work in 20 states, through a series of pilot programs awarded to community and faith based organizations by the U.S. department of labor. The early efforts have fielded promising results.

The first two years of the program, more than 12,800 offenders have enrolled in the prisoner re-entry program, more than 7,900 have been placed in jobs, only 18 percent of those enrolled in the program have been arrested again within a year that let's less than half the national average. We like to measure results, and the results of these pilot programs are very encouraging.

Legislation I'll sign today, Congress has recognized the success of this good policy, and I thank them for their good work. Secondly, the act will support the Justice Department's ongoing work to help our nation's prisoners. This bill will help state and local governments in Indian tribes and nonprofit groups implement programs that will improve the prisoner re-entry process.

The programs will provide further -- former prisoners with essential services like housing and medical care. It will help develop prisoner drug treatment programs. Support prisoner mentoring initiatives. It will support family counseling and other services to help prisoners re-establish their place in the community. In both these ways the Second Chance Act will live up to its name. It will help ensure that where the prisoners spirit is willing, communities resources are available. It will help our armies of compassion use their healing touch, so lost souls can rediscover their dignity and sense of purpose. Recently went to a program in Baltimore, Maryland, called Jericho. I met a man there who has kindly joined us today named Thomas Boyd. He's 53 years old.

HARRIS: This is -- this is a piece of -- interesting legislation. Interesting to hear the President talk about this. The idea of helping the government being on the side of these former inmates, these people who were released from prison. The President, moments from now about to sign the Second Chance Act of 2007.

And you are hearing the President talking about the housing assistance, and literacy classes and job training, so that these -- these prisoners these inmates, get back into life. Very interesting to hear the President talk this way. If you would like to watch the signing ceremony, again, let's put the graphic up here. CNN.com/live if you would like to follow it. Just go to CNN.com/live and you can follow this signing ceremony.

KEILAR: Tony, there is of course another live event that we are following all day today as we did yesterday. This is Capitol Hill. You are looking at a hearing before the House Armed Services Committee, and the two men who are on the hot seat, that man there, General David Petraeus, the top U.S. commander in Iraq, as well as Ambassador Ryan Crocker.

Now, Petraeus just saying a short time ago -- he was asked a question, how is the Iraqi army doing? He said B-minus, B-range. Basically saying that a lot of work remains to be done. We will continue to monitor this. You can check it out at CNN.com/live. We're also going to be checking in later in the morning with our Pentagon Correspondent Barbara Starr.

Well, police, they're on high alert in San Francisco today. The Olympic Torch is in town, and the city is expecting some pretty big protests.

CNN's Ted Rowlands is following the action in the city by the bay and I'm wondering what folks there are saying. Ted?

TED ROWLANDS, CNN CORRESPONDENT: Well, Brianna, lots of folks are already out here. Five hours from now this torch run will begin in San Francisco, and already there are hundreds of people out here at the beginning of the torch run. These are all pro-Chinese, pro- Olympic folks. And they are actually upset -- a lot of the folks in the San Francisco bay area, a huge Chinese population here.

They are upset with the media coverage saying that the protesters are getting too much attention. Steven Lin is one folks that's pro- China -- from China. You now live in the United States. What's going to happen today, you're going to have a lot of protesters who want to take advantage of the world stage, and there is a lot of you folks out here. Is it going to be a battle in the streets? STEVEN LIN, VISITOR FROM CHINA: We come here for separation. We no to care about too many people protest, because that we have right (PH) and they have right too. Right? And we come here with separation to support China.

ROWLANDS: You're organizing a 117 separate --.

LIN: (INDISCERNIBLE)

ROWLANDS: You are telling your people to --

LIN: Cool down. Calm down. Don't fight, we come in what (PH)? Separation. That's more important.

ROWLANDS: Worried?

LIN: No, no, no we are not worried about it. We -- this is America. In America -- Americans -- American citizen here. I have been in this country for a long time. I know that. I don't see any problems and we all should (ph) honor the game. This very important for all people, not only Chinese, all people, all people.

ROWLANDS: Well, obviously, the reality of it is that not all people are supporting China having the Olympic Games, and San Francisco police, law enforcement here, very, very much on edge here, Brianna, because of what happened in Paris and in London.

Every single San Francisco police officer is here today or working either today, last night or tonight. Vacations were rescinded, other law enforcement helping out as well. A lot of tension and there's going to be a lot of eyes on this torch run. We understand that a couple of the actual torch bearers will be using the Olympic stage to protest as well in some fashion. Not sure how they'll do that.

But it's going to be a very long day with people keeping their fingers crossed and nothing catastrophic happens here and that everything goes off without a hitch. But as you can see already, hundreds of people, thousands more expected along this route.

KEILAR: All right, Ted, you're keeping an eye there on the pro- China protesters and the anti-China protesters. We'll be checking back in with you later. Ted Rowlands in San Francisco.

HARRIS: You know, there is a pretty huge business element to this story, Brianna. Corporate sponsors invest tens of millions in this summer's Olympic Games in Beijing. Now, as protesters disrupt the Olympic torch run, those companies may worry about the fall-out.

Ali Velshi in New York City. There he is, minding your business this morning. Wait a minute, is that my vest you're wearing? My -- what is ...

ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: I do, you are the jacket to my vest, Tony, seriously, that's ...

HARRIS: Good morning to you, sir.

VELSHI: Good to see you.

I want to talk about what you want to talk about. But I do want to let you know, we're just checking on this right now. Oil has shot up in the last few minutes to over $111 now a barrel.

HARRIS: Well, what happened?

VELSHI: There was an inventory report that came in. Well, you know, we got a weekly inventory report on Wednesday morning.

HARRIS: That's true, that's true.

VELSHI: And the oil supplies are lower than we expected. We don't practice as carefully as we used to because we don't -- oil is so high, that we don't expect substantial jumps. So, all of a sudden, we get a jump like this ...

HARRIS: Right.

VELSHI: ...actually stands out a little bit. I will keep you posted.

HARRIS: OK.

VELSHI: Over $111 ...

HARRIS: Thanks, Ali.

VELSHI: ...jump of almost $3 a barrel.

Now, let's talk about the Olympics. The big sponsors are companies that you would expect. Coke, General Electric, Lenovo, which is the computer maker, Chinese company that took over from IBM, the computer making, Samsung, companies like that.

Now, they're concerned because usually being associated with the Olympics, a, it's very expensive but it's good, it's good for you. The impression that it gives is that you're supporting this international effort and obviously, get a lot of eyeballs.

Now, these companies have been sort of -- they're watching what's going on ...

HARRIS: Yes.

VELSHI: ...because if the association to the viewer and to the general public becomes negative, that affects their brand. So, Coca- Cola has said that look, they have seen the effects, the beneficial effects that the Olympics has on a host city and a country and that it brings teams together and that's a good thing. But they are concerned about the situation on the ground in Tibet.

HARRIS: Yes. VELSHI: Lenovo has said that -- they were a little less specific. They said that the branding of the Olympics is part of their international marketing campaign, it's very important to them. And General Electric has said that, you know, the sponsorship often allows teams to participate in the Olympics who otherwise wouldn't have. And that they think that their consumers understand that.

But they're all betting that their consumers understand that because what do you do now? Tony, these are multi-million dollar sponsors.

HARRIS: Well, that's what I want to ask you. OK, I'm Coke, I'll choose Coke because we're Atlanta-based.

VELSHI: Sure.

HARRIS: And I'm watching this unfold and I don't like it and I don't like what the light might be cast upon my company. Is there an opportunity here for me to -- get out of this contract and change the terms or something?

VELSHI: I think there -- these are big contracts. They don't unwind easily.

HARRIS: Yes.

VELSHI: I'll tell you there's probably two things that companies like Coke are thinking about. One is No. 1, the brand damage. Is there going to be net damage ...

HARRIS: Yes.

VELSHI: ...to what people think of when they see Coke or General Electric or things like that? They're big, massive companies.

The other one, of course, is there are protests out here. What actually happens now? Does that affect the safety of their plants or people who sell their products? Does that actually cause -- will people start protesting by saying I'm not going to buy a product? These are pretty sophisticated companies, so you can imagine that they are really thinking very carefully about this.

But if the decision were that we wanted to pull back on a sponsor ...

HARRIS: Yes.

VELSHI: ...that would be very complicated and a very big deal. So, I think everybody's kind of hoping that something starts to resolve itself around this because for the companies involved, this -- what was probably the biggest deal that they had in branding for the year, now could become a bit dicey.

HARRIS: And oil again, up over $100.

VELSHI: $111 a barrel, big jump, more than $2 this morning, just on news that oil supplies were lower than were expected. We will track that for you as always.

HARRIS: Yes, there he is, in my vest, Ali Velshi minding your business in New York. Ali, appreciate it.

VELSHI: See you.

HARRIS: OK, we want to get you to Pennsylvania now. Aliquippa, Aliquippa, Pennsylvania, Hillary Clinton talking about yesterday's testimony before the Senate Armed Services Committee.

(JOINED IN PROGRESS)

SEN. HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: ...and how important it is that we change course. And to a great extent, that's what this election will be about.

You know, my friend and colleague, Senator McCain, whom I respect for his incredible service to our country, with whom I have traveled to Iraq and Afghanistan, to meet our troops and to survey conditions there, has said that it would be all right with him if we kept troops in Iraq for up to 100 years. And again, yesterday, he basically reiterated his commitment to the course that we are on in Iraq.

Well, I don't agree with that. I believe strongly that ...

(CHEERING AND APPLAUSE)

CLINTON: ...we need to be planning and preparing to start bringing our troops home. And I have committed to doing that within 60 days of my becoming president, in a responsible, careful manner.

(APPLAUSE)

CLINTON: Senator Obama, on the other hand, says he'll end the war. But his top foreign policy adviser said he won't necessarily follow the plan he has been talking about during the campaign, that the plan is just words.

Well, you can count on me to end the war safely and responsibly. In fact, I led the efforts in Congress to force the Bush administration to begin planning for withdrawal from Iraq so that we wouldn't repeat the same mistakes getting out of Iraq that we committed getting into Iraq.

That's the choice. One candidate will continue the war and keeping troops in Iraq indefinitely. One candidate only says he'll end the war. And one candidate is ready, willing, and able to end the war and to rebuild our military while honoring our soldiers and veterans.

(APPLAUSE)

CLINTON: Now, tomorrow and Thursday, President Bush will deliver yet another speech about Iraq following the testimony of General Petraeus and Ambassador Crocker. Yesterday in the Senate Armed Services Committee, I asked General Petraeus for the conditions under which he would actually support a change of course in Iraq, and to begin a drawdown of our troops, given that the surge has failed to achieve its stated goal of political reconciliation among the Iraqis. Well, he didn't really answer me.

I also asked Ambassador Crocker if the United States Congress would have the same opportunity as the Iraqi parliament will have to review any agreement or long-term security pact that President Bush is negotiating with the Iraqis. Ambassador Crocker said that the Congress, your representatives, would not have that chance.

So, I have two requests of President Bush for his speech on Thursday. First, I call on the president to answer the question that General Petraeus did not. What is our end game in Iraq given the failure of the surge to achieve the objective that the president outlined for it?

Second, I call on President Bush to pledge to the American people who have sacrificed greatly for this effort that the United States Congress will have the chance to review and vote on any long-term security agreement he has negotiated with the Iraqis.

(CHEERING AND APPLAUSE)

HARRIS: Senator Clinton in Aliquippa, Pennsylvania, town hall meeting. We will eventually, I suspect, get to the town hall portion of this. But as you can see, the Senator there reflecting on the Iraq progress report from General Petraeus and Ryan Crocker before her committee yesterday and sharpening her differences with Senator McCain and Senator Obama.

If you would like to watch more of this, of course, you can watch it live right now, CNN.com. And Brianna ...

KEILAR: Yes, we're -- one of the things we're doing is really trying to make the distinct -- the distinction between the three candidates.

HARRIS: Shrill (ph) it down.

KEILAR: That's something we're doing today here in the CNN NEWSROOM.

HARRIS: Yes.

KEILAR: We already talked with Hillary Clinton's adviser. We'll be talking, coming up here in the CNN NEWSROOM, with the advisers and surrogates of Barack Obama as well as well John McCain.

Well, up, up, and up, up, up, up some more. Yes, gas. This is so sad, so sad, folks, setting a new record high. Are you feeling $4 yet?

(COMMERCIAL BREAK)

(BUSINESS HEADLINES)

HARRIS: A taste of what's to come, floods, hail, and a possible tornado outbreak, a dangerous forecast in the NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: Once again to Capitol Hill, the House Armed Services Committee, the Iraq progress report being delivered by General Petraeus and U.S. ambassador to Iraq. Ryan Crocker questioning now from Congressman Vick Snider (ph) from Arkansas. If you'd like to watch it live. Here you go, CNN.com. We will get some analysis and get some help sorting through this hearing this morning from our Pentagon correspondent Barbara Starr at the top of the hour. But first, a break.

You're in the CNN NEWSROOM.

(COMMERCIAL BREAK)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.voxantshop.com