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Iran Fires Second Round of Missiles; Fed Chairman Requests Stricter Regulations; Fire Crews Still Battle Flames in California
Aired July 10, 2008 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: Good morning, everybody. I'm Heidi Collins.
TONY HARRIS, CNN ANCHOR: And I'm Tony Harris. Stay informed all day in the CNN NEWSROOM.
Here's what's on the rundown.
Iran defies its critics and test fires another round of missiles. The U.S. vows to protect Israel.
COLLINS: Standing guard over the financial markets. This hour, the Fed chairman tells Congress he wants stronger regulations of the financial market.
HARRIS: A bar room brawl leaves one student fighting for his life, the second is on the run in Serbia today, Thursday, July 9th.
You're in the CNN NEWSROOM.
Well Iran is testing more missiles and possibly the result of the world's leaders this morning. Iran's state TV is boasting that it has launched more medium and long range missiles. It is the second straight day of military exercises and muscle flexing. Iran says it's merely responding to threats from the U.S. and Israel.
And in fact, Iranian missiles would be capable of striking Israel. Iran also says the missiles have special capabilities but does not explain what that means. Iran's sabre rattling has drawn a warning from the White House.
State Department correspondent, Zain Verjee, is covering the diplomatic front.
(BEGIN VIDEOTAPE)
ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT (on camera): The State Department spokesman Sean McCormack says Iran poses multiple threats to the region and the U.S. is working with its friends around the world to confront those threats.
Earlier, Secretary of State Condoleezza Rice had this warning for Iran.
CONDOLEEZZA RICE, U.S. SECRETARY OF STATE: We are also sending a message to Iran that we will defend American interests and defend the interests of our allies. We take very, very strongly our obligation to represent our allies defend themselves and no one should be confused about that.
VERJEE: The tests show that Iran is serious about fighting off any attack on its nuclear facilities. Experts also say it seems part psychological warfare, Iran responding to that high-profile show by the Israeli military last month that they could fly their planes hundreds of miles as far as Iranian nuclear facilities. So now Iran is strutting its stuff for the second day.
But there's another factor, too. There's an incentive package on the table for Iran to negotiate with the west over its nuclear program. So Iran could be firing off missiles to strengthen its hand ahead of possible talks. Experts say, too, that a larger point to understand these missile is this.
It's not actually the missiles themselves that make Iran dangerous because missiles are conventionally seen as a poor man's weapon, too, but what does make Iran dangerous is its ability to project its power in the region by proxy in Lebanon, the Palestinian territories, Iraq, Afghanistan. And that's what really worries the U.S.
Zain Verjee, CNN, Washington.
(END VIDEOTAPE)
COLLINS: Barack Obama and Hillary Clinton get together for breakfast. On the menu? Money. The two appeared at a breakfast fundraiser in New York last hour. Clinton expressed the importance of Democrats coming together to elect Obama in November.
(BEGIN VIDEO CLIP)
SEN. HILLARY CLINTON (D), FMR. PRESIDENTIAL CANDIDATE: It's critical that we join forces because the Democratic Party is a family. Well, sometimes a dysfunctional family, but it's a family. And we care about what's going to happen to the economy and health care and education, what's going to happen in Iraq and Afghanistan and to our young men and women in uniform, what's going to happen with our energy policy and whether we ever take on climate change in a meaningful way.
(END VIDEO CLIP)
COLLINS: Later today Obama discusses the economy with women voters in Fairfax, Virginia.
Meantime, John McCain campaigns if the swing state of Michigan today. He will be talking with workers and undecided voters in the Detroit suburb of Belleville. McCain plans to focus on jobs and small businesses during a town hall meeting there. Then later today he visits his regional headquarters in St. Paul, Minnesota.
HARRIS: Barack Obama and John McCain both calling for diplomacy to get Iran to drop its nuclear program. But from there, the candidates part ways.
Here's CNN's Dana Bash.
(BEGIN VIDEOTAPE)
DANA BASH, CNN CONGRESSIONAL CORRESPONDENT: Menacing Iranian missile tests, sabre rattling that one of these two men will be in charge of responding to in just six months.
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: This time for action --
BASH: John McCain calls Iran's new it proof of the need to build a missile defense system in Europe and impose tough sanctions.
MCCAIN: This kind of threatening of their neighbors, this kind of continued military activity, is not without cost.
BASH: Barack Obama wants to talk to Iran with direct diplomacy.
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: We haven't shown a willingness to engage in the sort of direct negotiations with Iran that would give them carrots and sticks for a change in behavior.
BASH: The reality is both candidates support diplomatic efforts with Iran to halt its nuclear program, but their difference in approach is a major flashpoint. Obama said as president he would sit down with Iran's leaders.
OBAMA: The notion that somehow not talking to countries is punishment to them, which has been the guiding diplomatic principle of this administration is ridiculous.
BASH: McCain mocks that as naive and stokes concern in the Jewish community like this on-line ad in an English language Israeli paper questioning Obama's commitment to protecting Israel.
MCCAIN: What does he want to talk about with Ahmadinejad? He said that Israel is a stinking corpse. He said he wants wipe Israel off the map.
BASH: Obama argues the U.S. must work with allies like Russia to pressure Iran. But the Bush administration has been trying that without success, proof say experts how vexing Iran will be for the next president, no matter who it is.
Dana Bash, CNN, Washington.
(END VIDEOTAPE)
COLLINS: Firefighters are stretched thin as they work to reign in hundreds of wildfires across northern California.
Reporter Holly Juscen of affiliate KRON looks at the biggest fire.
(BEGIN VIDEOTAPE)
HOLLY JUSCEN, REPORTER, KRON (voice-over): The so-called camp fire in Butte County is Cal Fire's biggest concern right now. 10,000 residents have been forced from their homes. Using this Google earth map, let me show you exactly where. The area in red is the gigantic and rapidly growing camp fire, which is now merged with the Butte complex fire. On the left in purple is the city of paradise, which is under its second round of mandatory evacuations in less than two weeks.
This wind whip fire has forced thousands from the area shaded in orange. So far 49,000 acres have burned and it's expected to grow in size. The fire is 45 percent contained but 50 homes have been destroyed. Conditions are improving in Monterey County at the Basin Complex fire near Big Sur. More residents are returning home after mandatory evacuation orders were lifted and a portion of highway 1 has been reopened to residents.
The stubborn fire is now 27 percent contained but continues to grow in size. It's consumed over 85,000 acres. Firefighters are making the most progress on the gap fire in Santa Barbara county. That wildfire is now 55 percent contained and no more mandatory evacuations, although fire officials can't say for sure when they expect full containment.
JUSCEN (on-camera): 19,000 firefighters are here in California battling these blazes. And just over the past three weeks, the cost of fighting these wildfires has added up to $112 million.
Holly Juscen, KRON News.
(END VIDEOTAPE)
COLLINS: Jacqui Jeras standing by now in our severe weather center to talk a little bit more about this. And of course, the big question, what the folks in California can expect to see over the next few days.
JACQUI JERAS, CNN METEOROLOGIST: Unfortunately, more of the same, guys. You know, it's like a broken record - a lot of heat, very dry conditions, and the winds a little on the gusty side today and tomorrow as well. But things will look a little better by the weekend. In the meantime, you're just choking out there.
This is Google earth. And we put on the air quality forecast for today. We'll zoom you in across the southwest and into California and show you the conditions here. And this is something that you rarely see. Yes, that's a purple dot right there. That is Fresno, California. Today's forecast for the ozone level and all the smog and humidity and also the smoke in the air is very unhealthy.
It's a pretty rare day that I see of the code purples on there. Code red in effect across most of the Sacramento and San Joaquin Valley. Stay inside. Put your A.C. on like indoor circulation, you don't want any of that outdoor air inside your house and you certainly don't want to be outside if you don't have to be, just you know, use the skyway if you can from your house to your car to your office and just to stay indoors.
Red flag warnings flying from California all the way through Washington state into the western parts of Montana. The winds and the dry conditions really critical, especially across this area and throughout much of the intermountain west. Of course, the heat continuing to bake you here into California -- 106 today in Sacramento, 108 in Fresno, San Jose, 99 degrees today.
Little bit coolish across parts of the upper Midwest. There are some showers and thunderstorms moving through. Severe thunderstorm watch in effect from Fargo extending down into parts of South Dakota and western parts of Minnesota. Be aware that some isolated severe storms expected in there, including the chance of some tornadoes.
We also have spotty showers and thunderstorms across the southeast, really just some pop-up action here, nothing really severe anticipated, but they might be kind of slow moving. You'll get real good downpours so if you're driving today, be aware that if you run across any of the thunderstorms your visibility could really drop just like that. We're also watching the coast of the Carolinas here. Thunderstorms are early this morning, beginning to pull out. A beautiful shot this morning. Look at that.
You know, we want to end this on a happy note today. Isn't that great? Charleston, south Carolina, great place to be today, 90 degrees, few thunderstorms expected, and the waves are going to start to pick up a little bit here today due to the impact of Bertha. Bigger waves expected by the weekend. So surfers make your plans now.
COLLINS: I was just going to say. Tony, get your board out.
HARRIS: I am awful. You would not want to see that. I'll i- report that for you.
JERAS: We'll talk more about Bertha, by the way. The update coming in a little bit early. We'll bring that to you when we get it.
COLLINS: OK. Very good. Thanks, Jacqui.
HARRIS: You know, how difficult really were the conditions in the Colombian jungle, chained and abused during more than six years in captivity?
She called it hell. We've got her "LARRY KING LIVE" interview. Ingrid Betancourt in a moment.
(COMMERCIAL BREAK)
COLLINS: Running from justice or injustice. Parents of a beating suspect helped him get out of the country.
(COMMERCIAL BREAK)
COLLINS: Out of bounds now beyond our borders. The college basketball player accused in a beating has gotten past prosecutors thanks to his parents and an embassy. CNN's Jason Carroll with the story.
(BEGIN VIDEOTAPE)
JASON CARROLL, CNN CORRESPONDENT (voice-over): What started as a college bar fight in upstate New York ended with Serbian basketball player Miladin Kovacevic wanted by Interpol. And Brian Steinhauer, a fellow Binghamton University student fighting to stay alive.
RICHARD STEINHAUER, VICTIM'S FATHER: It all started with every parent's nightmare phone call at 2:00 in the morning from a hospital emergency room. That your son is there. He's in critical condition.
CARROLL: Parents of both students spoke exclusively to CNN about their ordeal.
BRANKA KOVACEVIC, MOTHER (through translator): This situation was not in even in our worst dreams.
CARROLL: Binghamton Police say the trouble started when Steinhauer tried to dance with one of his Kovacevic's friends, a young woman. Kovacevic's parents say a fight erupted and their son defended himself.
PETAR KOVACEVIC, SUSPECT'S FATHER (through translator): In that moment he was hit twice in the head. He turned and in the moment pushed the attacker who fell. He does not remember what happened next.
CARROLL: Witnesses say Kovasevic who is 6'9", 280-lbs and his two friends brutally beat Steinhauer who is 5'9", 130 pounds.
MARLENE STEINHAUER, VICTIM'S MOTHER: Three people. It wasn't a fight. It was an assault.
RICHARD STEINHAUER: When somebody's helpless on the ground there's no such thing as self-defense anymore. When someone is being stomped and kicked while on the ground, that's beyond anything.
CARROLL: Police arrested Kovacevic and his friend, charging them with gang assault. Kovacevic pled not guilty. He surrendered his passport. But his parents worried that he would not get a fair trial, so they posted $100,000 bail and with the help of a Serbian diplomatic official in New York, Kovasevic was given a new passport. He escaped and returned to Serbia.
BRANKA KOVACEVIC (through translator): My son is not running away from justice. He's running away from injustice.
IRWIN ROCHMAN, ATTORNEY: That's not the way it works. He doesn't get to decide. And he doesn't get to decide by fleeing the country and committing another criminal act.
CARROLL: The U.S. State Department is now working to get Kovacevic extradited. SEAN MCCORMACK, STATE DEPT. SPOKESMAN: This is a painful episode for all involved. And we want to do our part to see that it's resolved as quickly as possible.
CARROLL: Ultimately Steinhauer's parents say their priority is helping their son who remains in a coma.
RICHARD STEINHAUSER: It's been total hell wondering first if he's going to live? Is he going to come out of the coma? What's he going to be like when he comes out of the coma?
(END VIDEOTAPE)
COLLINS: Boy, Jason Carroll is joining us live from New York with more on this story. Boy, he had the passport, he surrendered the passport and then he got a new passport. There are so many questions going on here. You have to wonder what the Serbian government is doing in cooperation.
CARROLL: Well, you know, Heidi, the Serbian government says that they are going to try to cooperate with U.S. officials, but the question is, how are they going to cooperate? I mean does that mean they're going to work to get this young man extradited back to the United States? You know, you talk to Serbian officials and they say that their laws don't compel them to extradite their citizens to the U.S.
COLLINS: So it is conceivable and possible that he could completely not come back and never face any charges.
CARROLL: Absolutely. One of the things that we've heard being floated about is perhaps he'll be tried in some way back in Serbia, but, you know, U.S. officials say a trial there is in no way comparative to the type of trial he would face here.
COLLINS: Yes. How is the young man doing now, still in a coma?
CARROLL: Still in a coma. You know, Heidi, you speak to his parents, every day is a struggle for this young man and for his family. He is still - every day it is touch and go for him.
COLLINS: Boy, it's a heck of a story. Jason, will you keep us posted?
CARROLL: Absolutely.
COLLINS: All right. Thanks. Jason Carroll live from New York this morning.
HARRIS: She was held captive for more than six years. Former hostage Ingrid Betancourt was the only woman among 15 people freed from Colombian guerillas last week. She tells CNN's Larry King about the cruelty she endured and the joy of seeing her two children.
(BEGIN VIDEO CLIP) INGRID BETANCOURT, FORMER FARC HOSTAGE: It was hell. It was hell for the body. It was hell for the soul. It was hell for the mind. Everything was so horrible. I mean, we had all kind of pains, little pains, big pains.
LARRY KING, HOST, "THE LARRY KING LIVE": You were physically tortured as well as mentally tortured?
BETANCOURT: We all were. We all were.
KING: What changes have you noticed in your children?
BETANCOURT: So many. They are bigger than me. They are stronger. They are amazing human beings, Larry. It's - you know, during all these years, I had, like, dreamed of this moment of being with them. And then when I came to live that moment, it was just like better - much, much better than what I dreamed.
(END VIDEO CLIP)
HARRIS: You can catch all of Larry King's terrific interviews, "LARRY KING LIVE," weeknights 9:00 Eastern, 6:00 Pacific, right here on CNN.
COLLINS: Your home, its value has probably gone down some but not your property taxes. How can you trim your annual bill? Gerri Willis has some answers.
(COMMERCIAL BREAK)
COLLINS: All right. Let's take a look at the Dow Jones industrial averages. Thirty-four points to the negative right now. Still above that 11,000 mark but just barely. Especially after yesterday, down 236 points before it was all said and done. We're going to watch these numbers for you as usual right here in the CNN NEWSROOM.
HARRIS: OK. The real estate downturn has probably impacted your own home's value so why haven't your property taxes gone down? Personal finance editor Gerri Willis is here with what to do to lower your taxes.
Well, Gerri, good morning. We changed the music a little bit on you.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: I like the music.
HARRIS: Is that good for you?
WILLIS: Love it.
HARRIS: All right. We should have run it by you, first. Good to see you, Gerri. What's going on here? Why are taxes still high when home values are lower?
WILLIS: Oh everybody knows this story, right? If you have a house, you think your taxes would track your assessment - your home's value because look your house could be assessed every year or every ten years. Things change in the interim. Housing prices have fallen, but property assessments have not. In fact, they basically where they were. So here is how your assessment is calculated. Let's look at that first.
While it is based on your home's value, it's also based on what it would cost to replace your home from scratch. It has nothing to do with what you could get in the marketplace for it right now. And in some states it's totally different. In California, the assessment is based entirely on what you bought your house for. So, devil's in the details here, Tony.
HARRIS: Yes. As always. If you believe you're paying too much in taxes, any recourse here? What should you do?
WILLIS: Yes. A lot of people feel this way. First off, you've got to check that assessment. Go to your local assessor's office. Here you can get an idea of the assessments in your area, resemble market conditions, are they on track with market conditions, included with your assessment there should be a work sheet that describes how they came up with the number. Check this for mistakes. Now, you may think your assessor knows your home inside and out but rarely do they make house calls, sometimes they don't even drive down the street and get by computers.
So, look, if you see the details and it says your basement is finished and it's not or it says you have three bedrooms and you don't, if your roof is older than what is listed, make sure you note these inaccuracies and contact the assessor's office. You may need to show them pictures of what's wrong so that they believe you. Usually you don't have to do much more than state your case.
HARRIS: Nice.
WILLIS: Finally, see what your neighbors are paying. Get the assessments on about 10 comparable homes in the area. If eight out of ten homes have seen their assessments reduced, hey, you're looking pretty. So take action.
HARRIS: Well, let's talk about taking action. I've followed your advice and I've built up a bit of a dossier now. I believe I have a case. How do I take action?
WILLIS: Well, you may need to request a hearing before a local property tax appeals board. And you don't need an attorney for this. The whole thing could take as little as a month and it is well worth the effort. They're successful, these assessment appeals are successful, up to half of the time, 50 percent of the time. And you can cut your taxes 10 percent to 20 percent. So it really makes a lot of sense.
HARRIS: Like it. Before I let you go, you've got something pretty special coming up later today, this morning, noon Eastern -- "ISSUE #1." WILLIS: "ISSUE #1," at noon Eastern. You'll want to join us today. We'll be talking live to the new UHUD Secretary, that's Urban Housing and Urban Development, Steve Preston. We'll be asking about the administration's efforts to curb this mortgage meltdown. And we'll also be taking your e-mails, answering those questions live on the air. We love to hear from you. "ISSUE #1" at CNN.com.
If you've got a question, something on your mind, let us know. Or are you mad about your taxes? Send us an e-mail.
HARRIS: Of course. There you go. Gerri, can't wait to see the show today noon Eastern on CNN. Thanks.
WILLIS: Thank you.
COLLINS: Crude comments overheard on an open mike. And now Jesse Jackson has some explaining to do. You may have heard his original comments but Jackson talked to CNN this morning. You'll hear from him coming up.
(COMMERCIAL BREAK)
HARRIS: And we have arrived at the half hour.
Welcome back, everyone to the CNN NEWSROOM. I'm Tony Harris.
COLLINS: Hi there everybody, I'm Heidi Collins.
Iran, the thunder of launching missiles, the rumble of new warnings. Iran's state TV says, it has launched more medium and long range missiles this morning. In a second day of military exercises. Iran says, it's responding to threats from the U.S. and Israel. And in fact, Israel is within striking distance of these Iranian missiles. And on another ominous note, Tehran says its missiles have quote, "special capabilities." It does not explain what exactly that means. The White House made its response crystal clear.
(BEGIN VIDEO CLIP)
CONDOLEEZZA RICE, SECRETARY OF STATE: We are also sending a message to Iran, that we will defend American interests and defend our -- the interests of our allies. We've done that both by -- I think you know that in the Gulf area, the United States has enhanced its security capacity, its security presence. And we are working closely with all of our allies to make certain that they are capable of defending themselves. And we take very, very strongly our obligation to help our allies defend themselves and no one should be confused about that.
(END VIDEO CLIP)
COLLINS: The Iranian exercises were performed one month after an Israeli aerial military drill. Many analysts that maneuver -- say that that maneuver was meant sent a message, that Israel is capable of attacking Iran's nuclear program. HARRIS: Iran's missile testing comes amid intense international scrutiny. At issue, far ranging concerns over Iran's nuclear ambitions.
We got the big picture now, from our chief international correspondent, Christiane Amanpour.
VOICE OF CHRISTIANE AMANPOUR, CNN CHIEF INT'L CORRESPONDENT: It comes at a time of heightened tension in that region. Particularly Iran has been saying that it will defend itself if attacked by Israel or the United States, if the nuclear facilities are attacked.
This of course, comes right at a time when the United States and Europe are presenting or had presented Iran with a new proposal to resolve the impasse on the nuclear negotiations. And Iran is said to be considering it and Europe is said to be considering Iran's response. In Iran itself, I've heard from officials that they do not want to be seen to be negotiating on anything that could be perceived as a sign of weakness. They don't want any flexibility on their part, to be misconstrued as a sign of weakness.
HARRIS: Now, it is worth noting that Israel has also left open it's option of attacking Iran's nuclear facilities.
COLLINS: Apology accepted. Barack Obama shrugs off a crude comment by the Reverend Jesse Jackson. Today on CNN's "AMERICAN MORNING," Jackson tried again to explain himself. He says he didn't know his microphone was on when he made the remark. Jackson accused Obama to talking down to blacks about faith-based programs and he said he wanted to cut off part of Obama's anatomy.
(BEGIN VIDEO CLIP)
REV. JESSE JACKSON, RAINBOW/PUSH COALITION: Well, it was ugly and unnecessary. And that's why I was quick to really apologize because Barack and I are friends. I am a (INAUDIBLE) support of his campaign, longstanding and currently and will continue to be.
Part of my anguish, frankly, beyond that is the limitations of the significant but faith-based programs. We need faith-based initiatives, also need government-based. When bridges are collapsing, levees are being overrun. It requires beyond faith, the substance of real investment. And so it's been part -- it's a private conversation. It was unfortunate and that's why I was quick to say what I did and he was quick to respond. And that's the good news.
(END VIDEO CLIP)
COLLINS: Political observers commended Jackson for his prompt apology and some disagree with his view Obama is talking down to blacks with his message of personal responsibility.
Here's part of the discussion from CNN's Anderson Cooper.
(BEGIN VIDEO CLIP) REV. AL SHARPTON, NATIONAL ACTION NETWORK: I'm glad he apologized. I think it was very unfortunate. I happen to think that Obama -- Senator Obama's calling on responsibility, challenging parenting and even faith-based initiative, is the opposite of talking down. I think it's the thing we need the challenges we need.
Those of us that fight today in civil rights are not calling for lack of responsibility. We want an even playing field so we can responsibly get the same place. I think the bigger issue, what is more important to me, I'm glad Reverend Jackson apologized. I hope people don't forget the good he has done and the great career he's had. And I think that the bigger issue that Senator Obama's raising is the things that I'm concerned. People don't get confused that that is in any way demeaning or out of step.
AMY HOLMES, CNN POLITICAL ANALYST: I don't think that Jackson has the same influence. And we saw with Barack Obama, he has rock- solid support in the black community. And a lot of members of the black community, they agree with Barack Obama. They agree that men need to take more responsibility for their families, for the children that they sire. That they need to be more -- getting more education and being less involved in the criminal justice system.
So this isn't a message or a discussion that black people aren't already having. And I would also say, too. I think this underscores a generational shift. That there's a generational dispute here and that Jesse Jackson is seeing his stars starting to wane and Barack Obama, I mean, he's the big superstar of the year.
(END VIDEO CLIP)
COLLINS: Tonight on "ANDERSON COOPER 360," are Jesse Jackson's controversial statements part of his fight to remain relevant? It's a good question and we want to hear from you.
Tell us what you think about Jesse Jackson's comments. You can log-on to our web site CNN.com and send us your i-Reports. You'll see them coming up a little bit later on today.
HARRIS: Boy, from magnets to airplane parts, consumers are looking for any gadget that helps their vehicles run on less gas. That's for sure. But you know what? There are many scams out there. And just a few really good solutions.
CNNMoney.com's Poppy Harlow breaks it all down for us in today's Energy Fix from New York.
Help us out here, Poppy.
POPPY HARLOW, CNNMONEY.COM: Good morning, Tony. There are a lot of scams out there but some things do work, as you said.
Let's start off with the thing that people really want to avoid. "Popular Mechanics" magazine has tested these items and said they simply don't work. Check this one out, it is a magnet that goes around your gas line. The problem? Gas isn't even magnetic so that obviously doesn't work.
The next one, this is a fan. It's available on the Internet. Again, it doesn't help you save gas at all. And finally, this pretty expensive gadget here. It's a water injector system. Believe it or not, this was used in World War II planes. But, Mike Allen, from "Popular Mechanics" says it is a total waste of money for vehicles of today.
I think we missed that thought there. But he says, listen, it doesn't work. You know what he said? It actually makes fuel efficiency worse. And get this, the Better Business Bureau is also warning that if you use some of these devices, it might void your warranty. Now, Mike Allen also said, be wary of some simple solutions because the automakers have thought them all through.
Let's see if we have his sound bite here.
(BEGIN VIDEO CLIP)
MIKE ALLEN, SR. EDITOR, "POPULAR MECHANICS": There are no simple devices to hang on your car that will increase your fuel economy. If it was that simple, they'd already be there. The best way to change your fuel economy is to change your driving habits.
(END VIDEO CLIP)
HARLOW: That is exactly right. That brings us to gadgets that do work. What you see right here, this is a simple scan gauge. It costs about $150. What it does, is it allows you to see how many miles per gallon you're getting at any moment when you're driving. And Allen says he was getting about 20 miles per gallon and then he tried this.
(BEGIN VIDEO CLIP)
ALLEN: I installed this scan gauge in it and then started driving by paying attention to the miles per gallon reader on it. Fuel economy jumped to 28 miles per gallon. Same car, same gasoline, same commute. The only difference was my right foot.
(END VIDEO CLIP)
HARLOW: Pretty unbelievable the savings there. So, if you spend about $100 a week on gas and you can up your efficiency by 40 percent like Allen did. That's a $40 savings. It would not take long at all to make up the $150 cost. There's also a fancier version, I like this one. It's called the Kiwi. It's brand new, it won't hit the market for about a week or so. It retails for about $300. It actually has a tutorial on it that teaches you how to drive more efficiently.
(BEGIN VIDEO CLIP)
ALLEN: Some vehicles, particularly electric hybrids, already have a miles per gallon function built into their display. And I think we're going to see that trickle down into non-hybrid vehicles, as well. (END VIDEO CLIP)
HARLOW: That's right. Actually, Tony, your new car could come with a new system that helps you out just like these do.
HARRIS: Terrific.
HARLOW: You can see my full interview with Mike Allen on our web site CNNmoney.com. A lot more about the scams out there, Tony. You don't want to spend money. Can you believe it?
HARRIS: That's silly.
HARLOW: This thing for airplanes, $400!
HARRIS: $400?!
HARLOW: $400 and it made his fuel efficiency worse. So before you spend money, check it out. Check our web site for the full interview. And hopefully it will help you save a lot.
HARRIS: Thanks, Poppy. Appreciate it.
HARLOW: Sure.
COLLINS: How secret is that secret pin number you type into the ATM? A major new theft has investigators scratching their heads.
CNN's Deborah Feyerick, reports.
(BEGIN VIDEOTAPE)
DEBORAH FEYERICK, CNN CORRESPONDENT (voice-over): It's something you probably take for granted. That when you use an ATM machine and enter your personal pin code, that secret number stays between you and your bank. Think again.
DON JACKSON, SECUREWORKS: We're at a tipping point where this is actually becoming a serious problem.
FEYERICK: It happened most recently at 7-Eleven stores across the country. Hackers broke into Citibank's network of ATM machines, snatched people's pin numbers and stole some $2 million from a range of bank accounts.
KURT HELWIG, ELECTRONIC FUNDS TRANSFER ASSOC.: ATM crime has become more and more sophisticated. You see organized crime rings, for example, that you know, are willing to sometimes invest you know, large sums of money up front in order to compromise an account or accounts.
FEYERICK: ATM trade spokesman Kurt Helwig says, it was an isolated incident.
(on camera): Still, the question, how'd did they do it? 60 percent of ATM machines are owned by private independent companies. Prosecutors are investigating the possibility that the thieves hacked into the private ATM computer network, owned by Cardtronics, stealing the pin codes during transmission before they ever reached the bank.
Citibank tells CNN, "The situation has been resolved. There have been no fraudulent transactions since March." Three people believed to be at the center of the theft have been indicted. And Citibank says they've repayed anyone whose accounts maybe have been compromised.
In the past, ATM machines have been compromised by phony card scanners or cameras, recording people punching in their pin numbers. But, this raises the stakes because hackers can steal an unlimited number of pin codes electronically.
Deborah Feyerick, CNN, New York.
(END VIDEOTAPE)
HARRIS: What do you say we get over to Jacqui Jeras, severe weather center.
Jacqui, you've got some new information on Hurricane Bertha to share.
JERAS: That's right. Just in, the latest advisory from the National Hurricane Center shows that Bertha has weakened a little bit. It's down to a Category 1 hurricane now, with maximum sustained winds at 90 miles per hour. So it's a little bit of a modest weakening. Doesn't mean a whole heck of a lot. Hurricanes tend to go through these cycles where they weaken a little and strengthen back up a little bit. In fact, we could see those winds increase again later on today.
We're starting to hone in a little bit on Bermuda now. We're within 500 miles away from the island. And there you can see some of those real high, thin outer cloud bands starting to move towards that area. Also, you've already seen some pretty rough surf and also some pretty high swells. So that will be impacting the island right through the weekend. But, we are expecting it to turn a little bit. It's moving northwesterly right now.
We think it will start to pull up to the north and skirt east of the island. But notice, it is within that cone of uncertainty. And we're still talking several days away. You know, late in the weekend into early next week before it's going to make its closest approach. So, still something to monitor very closely. But we do like it when we start to see those weakening trends, don't we Tony and Heidi?
HARRIS: That's the truth.
COLLINS: Yes, very much so. Thank you, Jacqui.
HARRIS: Foreclosures soar in June. We've got to tell you the year over year numbers, pretty stunning. Way too many people in trouble with their homes. Susan Lisovicz is dig deeper on these new numbers, she's next.
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COLLINS: First pillows, then food. Now it's your frequent flyer miles. Northwest Airlines announcing they will charge you up to 100 bucks to cash in your miles. Also now, 15 bucks extra per checked bag. They say gas prices once again, are to blame.
(BUSINESS HEADLINES)
HARRIS: Denver police say they now know who didn't kill JonBenet Ramsey. Startling results of new DNA tests.
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COLLINS: It was ugly while it lasted. Christie Brinkley and Peter Cook have just settled their very public divorce case, out of court. The deal coming after a week-long public airing of the couple's dirty laundry. According to the Associated Press, Brinkley will give Cook $2.1 million, but keep 18 properties in the Hamptons, that were at dispute. Cook will also get parenting time with the children.
Jury selection begins today in a murder trial stemming from a deadly courthouse rampage in Atlanta. Brian Nichols is accused of killing a judge, a court reporter, a sheriff's deputy and a federal agent in March of 2005. Prosecutors say Nichols overpowered a female deputy, stole her gun and went on a killing spree. His attorneys plan to argue he was insane and couldn't tell right from wrong. The trial was delayed by a series of complications.
HARRIS: Umbrella of suspicion finally lifted. An attorney for John Ramsey, told CNN this morning he has no plans to sue prosecutors or law enforcement. This comes after a Colorado prosecutor apologized to the family of JonBenet Ramsey for being under suspicion for her death. A DNA test using a new type of technology, has confirmed a 1998 finding that there was no genetic match for the family from evidence. The material instead matches an unidentified man.
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JOHN RAMSEY, FATHER OF JONBENET RAMSEY: The most significant thing is that I'm very comfortable that we have a good, solid, irrefutable DNA sample that will be in the national database. And as that database gets populated, we have a good opportunity, I think, to eventually find an answer to who did this. We're certainly grateful for the acknowledgement that we are innocent. This was an intruder, which, of course, we've always maintained.
(END VIDEO CLIP)
HARRIS: The apology came too late for JonBenet's mother. Patsy Ramsey died of cancer two years ago. COLLINS: Hollywood could soon go on strike again. What it means to your favorite TV programs. And one actor prepares for what may be his next role on the picket line.
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HARRIS: We're going to tell you about the podcast a little bit here. We're just changing it up. We're always trying, Heidi, wouldn't you agree, to keep it fresh.
COLLINS: Oh, yes.
HARRIS: We're ramping up the news element in the podcast right now, just to make that available to you. So, if you haven't visited in a while, now is the time to visit. Just go to CNN.com, download the CNN NEWSROOM daily podcast, available to you 24/7. Do it today. It's right there on your iPod.
COLLINS: So fresh. That picture is brand new, isn't it?
HARRIS: It is? No, no. I had hair then.
We've got this for you. A visit to the zoo leaves dozens of people up in the air. They had to be rescued from cable cars dangling 100 feet above the Bronx Zoo in New York. Can you imagine? 37 passengers were stranded on the ride when one of the cars somehow managed to get out of alignment. Firefighters used a crane to rescue the people from that car. They were eventually able to restart the ride and bring the others down. Man.
COLLINS: Your favorite TV shows could go on hiatus again unless Hollywood actors and producers reach a deal on a new contract. Representatives of the Screen Actors Guild and the studios meet today to discuss the producers' final offer. The producers have given the actors until August 15th to agree to the offer or lose out on a retroactive pay raise. The writers' strike stopped TV production for three months last season.
CNN's Brooke Anderson, reports now on how one actor is preparing for a possible strike.
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UNIDENTIFIED MALE: I'm a makeup artist. Second generation.
BROOKE ANDERSON, CNN CORRESPONDENT (voice-over): There's a good reason why David Abbott (ph) calls himself a multi-tasking dad. He's a Hollywood makeup artist, father to four special needs adopted kids. His wife Fran, receives daily chemo treatments and they've already reared three biological children.
UNIDENTIFIED MALE: The two boys are electricians at Local 728. My older daughter is a makeup artist as well.
ANDERSON: David and his grown kids are known as below the line workers, Hollywood's behind the scenes skilled laborers. For thousands in this workforce, the tanking economy and recent writers' strike have been a devastating one-two punch.
UNIDENTIFIED FEMALE: We had to sell our home. We did a short sale, we lost money. We sold our RV.
UNIDENTIFIED MALE: You're selling everything you can, just to make sure you're keeping above water.
UNIDENTIFIED FEMALE: It's the people who live paycheck to paycheck that can't really plan for that loss of money.
ANDERSON: The "Hollywood Reporters" Lesley Simmons says, the Abbott family is far from alone and things could get a lot worse with another strike brewing.
UNIDENTIFIED FEMALE: They would definitely be the ones most impacted by an actors' strike.
ANDERSON: Without the bank accounts of the industry's A-list or second job, standard for many actors, it's the below the line workers who could lose the most if the Screen Actors Guild strikes.
UNIDENTIFIED FEMALE: Well, obviously, it could kill me.
ANDERSON: In the case of the Abbotts, if David doesn't work a minimum number of hours, he and Fran will lose their health insurance.
UNIDENTIFIED FEMALE: I've had lupus for several years but maintained control of it. With the economy and the strikes, it came out of remission and it now is -- has affected my brain.
ANDERSON: Where they lack in finances and health, the Abbotts admit they have been rich in love and support. Besides family and friends, they have received assistance from the Motion Picture and Television Fund, a social service agency for out of work artists.
UNIDENTIFIED FEMALE: More than just a safety net. They're just unbelievable people that have come in and just provided all kinds of services.
ANDERSON: Brooke Anderson, CNN, Hollywood.
(END VIDEOTAPE)
HARRIS: And good morning again, everyone. You're informed with CNN. I'm Tony Harris.
COLLINS: Hi everybody, I'm Heidi Collins. Developments keep coming into the CNN NEWSROOM on this Thursday, the 10th of July.
Here's what's on the rundown.
Iranian TV shows another round of missile launches. The tests prompt new warnings from the U.S. and Israel.
HARRIS: Fire crews try to keep flames away from more homes in Paradise, California. They're banking on a river to hold the inferno. COLLINS: A CNN investigation leads to a congressional inquiry. Why loads of FEMA supplies never made it to Hurricane Katrina victims.
