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Swift Vetting for Obama Nominees; California Homeowners Fear Mudslides; Yemeni Ship Hijacked by Pirates; Noise Violation Punished With Pop; Mom and Kids Clip Coupons, Save Big
Aired November 25, 2008 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BETTY NGUYEN, CNN ANCHOR: New developments in the financial crisis. We have details on consumer credit and toxic assets. We're going to watch how Wall Street reacts.
And Barack Obama assembles more members of his team. Who they are and what it says about his administration.
Hello, everybody. It is Tuesday, November 25th. I'm Betty Nguyen in for Heidi Collins, and you are in the CNN NEWSROOM.
All right, up first, Wall Street's two-daily surge. Will investors take a big step back today? Well, just minutes ago, new measures of the ailing economy.
Also this morning, Treasury Secretary Henry Paulson, he's going to update the $700 billion bailout plan.
Are you getting your money's worth? We have answers next hour.
And investors take stock around the world. Is America's money crisis getting worse? The international markets, they are mixed today.
We do have a lot to break down for you this morning and CNN's Christine Romans is in New York with the big picture for us. And first, Christine, let's talk about these bailout developments because there is a lot on the plate today.
CHRISTINE ROMANS, CNN CORRESPONDENT: Yes, 2008 will go down as the year of the bailout, Betty. There's no doubt about that and it's all our money, so it's incredibly important for two reasons -- one, because we're paying for it and, two, because, if it works, it's supposed to make things better for us.
So let's talk about first what we're talking about here. The Fed announcing a huge program to buy up hundreds of billions of dollars of mortgage-related assets. These are those bad assets that are sitting on the books that have really been difficult to value and have been very difficult for these banks to try to get around.
I mean, they are -- some of these banks are drowning in the -- in these mortgage-backed securities. So the Federal Reserve, Treasury also, unveiling a new plan to help consumer lending. It's going to use $20 billion out of your bailout money, your -- TARP, the Troubled Asset Relief Program, the Treasury is, and it's going to try to help some of these companies that are lending credit cards, lending credit card debt, student loans, other consumer finance things, also like autos.
So they're trying to get that lending going. It has ground to a halt and the Treasury secretary has said -- you know, signaled that he wants to leave the bulk of the rest of the bailout package for the next administration, flexibility for this administration and the next administration, but they will tap $20 billion more here for this consumer finance.
Now the bigger number, that Fed number. OK, it's going to be $200 billion to hold as a securities-backed by consumer debt such as credit card debt. Also, $240 billion to the kinds of securities that were issued by the nation's financial institutions back in 2007.
Starts to get a little complicated, but what this is is hundreds of billions of dollars of money being deployed to try to get those lending markets freed up again so that lending can continue. And so that's what this is. It's the next step of the big bailout and it's an awful lot more money -- Betty?
NGUYEN: And speaking of things that are kind of awful these days, we're looking at some new numbers today and it's not good news at all.
ROMANS: Well, and maybe lost in all of this is the reason why they're doing this. The GDP number came out, Gross Domestic Product, for the third quarter and as expected it declined.
Third quarter GDP down -- I was looking, let's see down...
NGUYEN: 3.5 percent, the lowest in seven years.
ROMANS: I have it down actually half a percent.
NGUYEN: 0.5, that's right. Yes.
ROMANS: 0.5 percent, sorry, I think I got mine...
NGUYEN: It was, yes.
ROMANS: Down half a percent. Usually this is a number that's measured in just tenth of a percent increments and indeed it was again declined 0.5 percent -- there we go.
NGUYEN: There we go.
ROMANS: ... for the third quarter. So the economy contracting. And you know, when an economy is contracting, that's not good for people. It's not good because it means we're losing jobs. It means that their incomes are going down. It means that they're having more trouble feeding their family.
It means they're having trouble maybe going to college. They have to put off retirement. I mean these are the reasons why your government is trying so hard to get the financial infrastructure kick started again and going again.
So we're going to dig into more of these details. I just want to say, this treasury and Fed stuff has all been happening in the last half hour. So we're going to get more details for you and try to figure out like what all this really means, how they're -- deploying all this money.
But basically, it is the Treasury and the Fed finding new ways to go out and try to spur lending, to boost lending to get the economy going -- Betty.
NGUYEN: And we should hear more at 10:00 Eastern, when we're going to be...
ROMANS: That's right.
NGUYEN: ... listening to Treasury Secretary Henry Paulson as he details or explains in detail some of these new initiatives.
All right. Thank you so much, Christine.
ROMANS: OK.
NGUYEN: You know, your money, "ISSUE #1" for you, of course, and also for the Obama presidency. It is the mission right here to get control of the nation's financial crisis.
Now, today, a new decision maker emerges to face the nation's largest economic challenge in decades. Our White House correspondent Suzanne Malveaux joins us now with more on the financial team that is shaping up.
Suzanne, you know, we're hearing specifics about the plan. Well, actually, a little bit. Not, not too specific. Are we going to hear more of those specifics?
SUZANNE MALVEAUX, CNN CORRESPONDENT: You know Obama said that his economic team would start today in crafting a recovery plan, but we don't expect, Betty, to get a lot of details on it for some weeks.
But we do know some central themes in Obama's plan. First and foremost, a huge economic stimulus package. It has to be passed by Congress, but it's meant to jump-start the economy, create 2.5 million new jobs in two years, that is what he says.
Second, a plan to figure out how to best allocate the rest of the $700 billion bailout to shore up those markets. And third is a way to start cutting the budget where there is wasteful spending.
So those are the immediate things that Barack Obama says he wants to do -- Betty?
NGUYEN: And also, expected to announce another key appointment today. What are you hearing?
MALVEAUX: Peter Orszag is going to be named the director of Office of Management and Budget. And he's head of the Congressional Budget Office. He's another one who comes out of the Clinton White House and we also expect at a later date, New Mexico Governor Bill Richardson, another former rival turned friend now, is expected to be named the commerce secretary.
And Betty, what's really interesting and important, when you look at these appointments, is that there are some key themes that are emerging. One is the need for consistency. That's why you have a guy like Tim Geithner as treasury secretary. He worked as New York's Fed chair, intimately involved in the $700 billion bailout deal.
He is really a link between what is happening in the Bush administration and what's going to take place in an Obama administration.
Another theme, Betty, is accountability. Yesterday we heard Barack Obama slamming the big three automakers for not having a plan to get themselves out of their own financial mess when they approached Congress last week for money.
So it's accountability and it's consistency.
NGUYEN: Suzanne, we heard from Barack Obama yesterday. We're going to hear from him again today, stepping up his visibility. Is this a change in the strategy?
MALVEAUX: Well, he doesn't want to step on President Bush. He says there are -- there's only one president at a time. But we do expect to see more of him in the days ahead. He is rolling out his full economic team this week.
After Thanksgiving, we expect to hear about Hillary Clinton's role, very likely, as secretary of state, and then he's going to work on his national security team. So we are going to see a lot more of him in the weeks to come -- Betty.
NGUYEN: All right. CNN's Suzanne Malveaux, thank you very much for that.
You know, we do want to take a closer look now at Peter Orszag. He now heads the Congressional Budget office and he is considered an expert on healthcare, pensions, and Social Security policy.
He worked at the Clinton White House as special assistant to the president at the National Economic Counsel. He also served on the Council of Economic Advisers. A little additional information for you there.
We also have live coverage of President-elect Obama's news conference. It's now scheduled for noon Eastern, 9:00 Pacific. Now, of course, you can see it right here on CNN.
In the meantime, though, the nation's next treasury secretary inherits the biggest financial mess since the Great Depression. So is treasury nominee, Timothy Geithner, a better choice than the current secretary, Henry Paulson? CNN senior correspondent Allan Chernoff takes a look.
(BEGIN VIDEOTAPE)
ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT (voice over): At a time of economic crisis, President-elect Obama's pick of Timothy Geithner to be treasury secretary is highly celebrated.
PROF. JEFF FRANKEL, HARVARD UNIVERSITY ECONOMIST: Tim Geithner is the right guy. I mean, he has long experience with dealing with financial crisis.
CHERNOFF: Investors have been frustrated with current treasury secretary Henry Paulson's flip-flopping through the financial crisis. Paulson lobbied hard for treasury to gain $700 billion to buy troubled mortgages from banks then abandoned the plan.
That accelerated the crisis facing Citigroup, a major owner of mortgages, and helped force Monday's bailout of the bank.
Geithner, economists say, should know better than to call such uncertainty for the financial markets.
AMITY SHLAES, COUNCIL ON FOREIGN RELATIONS: Secretary Paulson was making it up as he went along. He wasn't very clear about the rules.
CHERNOFF: Another contrast, Paulson spent his career at Goldman Sachs, rising to chief executive. Geithner has no allegiance to any Wall Street firm. He's a product of the Treasury Department, where he spent years handling financial crisis around the globe.
Even Secretary Paulson expressed administration of Geithner, saying, Monday, I have great confidence in his understanding of markets, his judgment, and leadership.
Allan Chernoff, CNN, New York.
(END VIDEOTAPE)
NGUYEN: And again, we do want to remind you that at the top of the hour, we are going to join Treasury Secretary Henry Paulson as he updates the nation on the bailout plan. That is scheduled for 10:00 Eastern, 7:00 Pacific, and you can see it right here live on CNN.
Ted Kaufman, longtime chief of staff to the vice president-elect, well, he is now replacing Joe Biden in the U.S. Senate. The Delaware governor appointed him late yesterday saying, quote, "his political views are close to Senator Biden's and he doesn't need any on-the-job training."
A lot of political watchers had thought Biden's son, Beau, currently Delaware attorney general, might be appointed but last week, he said that he would not accept the job is offered.
Well, are you looking for a new car that is also safe? We've got more to choose from than every before. Those new test scores, they are in. We'll break it down for you.
(COMMERCIAL BREAK)
NGUYEN: Take a look at this new video into CNN. President Bush on his way to Kentucky. He's going to be spending the day at Ft. Campbell, where he'll give a speech about the threat of global terrorism.
The president will also have lunch with about 150 soldiers and many of them recently returned from deployments in Iraq and Afghanistan.
Ft. Campbell is home to the 101st Airborne Division.
All right, so a lot of folks getting ready for that holiday travel, heading home for turkey or tofu day, whatever your choice is, and Rob Marciano has been looking at the weather outside.
Please tell me that the roads are going are to be all clear?
ROB MARCIANO, CNN METEOROLOGIST: Tofu?
NGUYEN: Well, hey, some people aren't into turkey.
MARCIANO: OK.
NGUYEN: Could be tofu day.
MARCIANO: That's fine. I understand that. I don't know how American that is, but, you know, whatever floats your boat.
(WEATHER REPORT)
NGUYEN: Really it's -- a little bit of almost anything and then you see those slowdowns...
MARCIANO: Exactly.
NGUYEN: ... and it's just a domino effect.
MARCIANO: But it will be all worth it come Thursday.
NGUYEN: Once you get there, and in front of that turkey for you, right?
MARCIANO: Or tofu.
NGUYEN: Or turducken. Have you heard of that?
MARCIANO: Nice. Yes.
NGUYEN: Yes. See, I watch a little football every now and then.
MARCIANO: Sure.
NGUYEN: OK. Thank you, Rob. MARCIANO: All right.
NGUYEN: Gas and go this holiday season. Millions of you ready to give thanks for the lower prices at the pump. Well, the price for a gallon of unleaded regular, now -- listen to this -- an average of $1.88 nationwide.
Not too bad. That is down another two cents since yesterday and the lowest that we have seen since February of 2005.
36 states now have an average price under $2 a gallon.
Well, you could be safer on the road this Thanksgiving than last year. Yes, there are more safe vehicles out there than ever. A new list is just out and Jessica Doyle has the details.
(BEGIN VIDEOTAPE)
JESSICA DOYLE, CNN CORRESPONDENT (voice over): This may not look good, but it could be a lot worse. The 2009 GMC Acadia is among a record-number of vehicles receiving a top safety pick award from the Insurance Institute for Highway Safety.
RUSS RADER, INSURANCE INST. FOR HIGHWAY SAFETY: We have 72 winners for 2009 and that's a dramatic increase. Just three years ago, for example, we only had 13.
DOYLE: The top safety pick award goes to vehicles that receive the insurance institute's highest rating for front, side, and rear impact crashes. Vehicles also have to come equipped with state of the art safety technology, designed to help drivers avoid crashes altogether.
RADER: Electronic stability control can break individual wheels and in some cases, actually reduce the throttle to help keep the vehicle going in the direction that you want it to go in.
DOYLE: For the 2009 model year, the biggest bragging rights go to Ford and its Volvo division with 16 awards. Honda and its Acura subsidiary won 13 awards. The Insurance Institute says Chrysler is the only major automaker that didn't score a top pick, falling just short in rear crash tests.
So will you have to pay more for safety?
RADER: You can buy a Ford Fusion, for example, with its optional stability control and get the same level of safety that you would in a car costing twice as much.
DOYLE: The lesson there, you don't have to pay luxury prices.
In Washington, I'm Jessica Doyle.
(END VIDEOTAPE)
NGUYEN: Well, the manhunt for a person suspected of brutally gunning down two people inside a New Jersey church is over. Police in Georgia arrested Joseph Pallipurath yesterday. Now U.S. marshals and local police tracked him down and they found him actually holed up in a motor inn in Monroe County, Georgia.
(BEGIN VIDEO CLIP)
SGT. JOHN MINTON, WALTON COUNTY: Well, apparently, they arrested an individual that New Jersey wanted for two counts of murder and he was arrested at 2346 last evening at the Monroe Motor Inn here in Monroe.
UNIDENTIFIED MALE: It's one of those things, you know, you commit a crime like that, you know, resources are going to come and they're going to -- we're going to try to find you.
MATHAI PALLIPURATH: Because he couldn't find a job. I told him to surrender to the police so that where you are surrender.
(END VIDEO CLIP)
NGUYEN: Well, New Jersey police say that he shot both his estranged wife and another man in the head inside a church in a New Jersey suburb on Sunday. Pallipurath will be extradited back to New Jersey after he faces a Monroe County judge.
Michael Vick, back in a Virginia court today. The former NFL star plans to plead guilty to two state charges on dog fighting. Here's some new video into CNN. A deal with prosecutors calls for a suspended sentence and probation.
Now Vick is serving time on federal dog fighting charges. He's scheduled to be released from prison next July and hopes to resume his football career.
Jury deliberations begin today in the case of a Missouri woman accused in the case of a teen who committed suicide. Laurie Drew has pleaded not guilty to conspiracy and accessing computers without authorization.
Prosecutors say she invented an imaginary boy who communicated online with Megan Meyer so Drew could learn if Meyer was spreading rumors about Drew's daughter. You following that? Well, prosecutors say Meyer became hooked on the boy, killing herself after she was spurned.
A Miami judge is expected to rule on a challenge to Florida's law banning gay people from adopting children. Martin Gill petitioned the state of Florida to adopt two young boys that he's been raising as foster children.
While the state allows gay individuals to be foster parents, it is the only state that explicitly bans them from adopting. A judge in Key West ruled in September that the ban was unconstitutional.
Well, the future first lady says her main priority will be first mom, but how else will Michelle Obama define her role? We're going to take a look.
(COMMERCIAL BREAK)
NGUYEN: Want to tell you about another Obama appointment. This one involving a close family friend and business woman, that being Desiree Rogers. The future first couple has tap tapped her as social secretary. And that puts her in charge of all events at the White House, except for private appointment.
Now she does emphasize that she's not just a party planner. Her resume is quite lengthy, president of social networking for Allstate Financial, a past president of two Chicago area natural gas utilities, one-time director of the Illinois lottery and numerous civic contributors.
In her new role, Rogers says she wants to bring, quote, "life to the Obama presidency."
Not a bad gig.
And as the Obamas look ahead to life in the White House, many wonder what role Michelle Obama will play. Some thoughts now from CNN's Susan Roesgen.
(BEGIN VIDEOTAPE)
SUSAN ROESGEN, CNN CORRESPONDENT (voice over): The first lady of France, Carla Bruni, was a star before she married Nicolas Sarkozy and she says she doesn't intend to stop strumming her own tune.
So what's Michelle Obama doing these days? Well, while her husband is choosing his new Cabinet, she's choosing a Washington school for their two daughters.
Don't be fueled, Michelle Obama is a Princeton graduate with a Harvard Law degree, but her career is in Chicago and there are no plans for her to practice corporate law or set up community development programs in D.C. as she did here.
Can she still be herself without her own job?
RUTH MANDEL, EAGLETON INSTITUTE OF POLITICS: I wouldn't tie identity to paycheck. I would tie it to what you see as your opportunity, what you can accomplish with that, and there's so much you can do from the platform of a first lady.
ROESGEN: Political scholar Ruth Mandel says every first lady defines the role for herself.
Eleanor Roosevelt was an advocate for the working poor and she reported back to her husband, Franklin. And Rosslyn Carter was her husband's diplomatic partner on foreign trips. But Cherie Blair, the wife of former British Prime Minister Tony Blair has some advice for Michelle Obama.
Mrs. Blair, says Mrs. Obama, should learn to take a backseat to her husband, both publicly and privately. Others say she shouldn't have to.
MANDEL: I think every first lady has an opportunity few other women have, and that is to express her opinion, give her advice and then he gets to choose how he wants to use that. So everything really depends on the relationship they have and what her influence is in influencing his thinking.
ROESGEN: And as former first lady Nancy Reagan once said, a woman is like a teabag. You never know how strong she is until she's in hot water. The water is always hot in the White House.
Susan Roesgen, CNN, Chicago.
(END VIDEOTAPE)
NGUYEN: Well, up, up, and away. And he is no superman, folks, but he can fly. Check that out. A jet pack daredevil takes on a new challenge.
(COMMERCIAL BREAK)
NGUYEN: Look at the numbers now as we're beginning the day on Wall Street. It is coming off a historic rally. The Dow surged nearly 900 points over the past two sessions, marking the biggest two- day point gain ever.
So, any chance of a three-peat, that'd be nice. Susan Lisovicz -- there's the bell -- at the New York Stock Exchange with details.
Hi, Susan.
SUSAN LISOVICZ, CNN CORRESPONDENT: Good morning, Betty. Well, stocks are on track to rally again, at least at the open. This comes despite fresh reports on the ravaged housing market and its impact on the broader economy.
A closely watched survey shows that home prices continues to decline and decline sharply. The S&P/Case-Shiller report showed a 16.6 decline in the third quarter. All 20 cities studied in the report showed declines.
And the weakness in the housing market, of course, weighs on the broader economy. Third quarter GDP, the broadest measure of economic activity, shrank at an annual rate of 0.5 percent, the worst showing in seven years. That's weaker than the original estimate. In about half an hour, we're expecting a separate report to show consumer confidence dropped this month.
But encouraging this morning, moves by the Treasury and Federal Reserve to pump hundreds of billions of dollars into the economy. The Fed buying $500 billion in mortgage-backed securities from Fannie Mae, Freddie Mac and Ginnie Mae. And 100 billion in debt from those government-sponsored mortgage firms.
The Fed also lending up to $200 billion to companies that hold securities backed by consumer loans like credit cards and auto and student loans. The hope is that by taking these steps, the availability of mortgage and consumer loans will increase. Yet another attempt to ease the credit crunch.
And investors like those moves, apparently. The Dow industrials right now registering triple digit gains. The blue chips up 109 points or 1.3 percent. The Nasdaq is up 0.75 percent. A nice start and perhaps a very rare event, perhaps, a three-peat.
NGUYEN: We can't say it too loud, though. Don't want to jinx it.
LISOVICZ: Don't want to jinx it.
NGUYEN: But that would be fantastic if it did happen. OK, thank you. We'll be watching, Susan.
LISOVICZ: Well, you know, the nation's financial rescue plan, the $700 billion of your money, that's at the top of the hour. Because we're going to join Treasury secretary Henry Paulson as he updates us on the bailout.
So, here's a question, are you getting your money's worth? That news conference scheduled for 10:00 Eastern, 7:00 Pacific. You can see it live right here on CNN.
President-elect Barack Obama and his financial team, they are inheriting the nation's worst money crisis since the Great Depression. 90 minutes from now, he is expected to introduce his White House Budget chief, Peter Orszag, who now heads the Congressional Budget Office.
Of course, we're going to have live coverage of President-elect Obama's news conference. It's scheduled for noon Eastern, 9:00 Pacific.
So, the president-elect is rushing to get his team together and he's vowing to hit the ground running once he takes office. It's a message that jittery investors desperately want to hear, and it is a vetting process that allows little room for error. CNN's Jim Acosta explains.
(BEGIN VIDEOTAPE)
BARACK OBAMA (D), PRESIDENT-ELECT: Good morning.
JIM ACOSTA, CNN GENERAL ASSIGNMENT CORRESPONDENT (voice-over): Barack Obama is already making presidential history by naming or leaking his cabinet picks faster than nearly all of his recent predecessors.
OBAMA: And if we do not act swiftly and boldly, most experts now believe that we could lose millions of jobs next year.
ACOSTA: With an economic crisis spiraling out of control and a lame duck in the Oval Office, presidential scholars say the next commander-in-chief simply had no choice. LARRY SABATO, PRESIDENTIAL SCHOLAR, UNIVERSITY OF VIRGINIA: This is really unprecedented. But it's an unprecedented situation. Obama is doing what the public and the markets demand be done. And that is to show that the next president is in charge even before he takes the oath of office.
ACOSTA: The conventional wisdom was that the Obama's transition team vigorous vetting requirements including a probing seven-page questionnaire would slow down the selection process or scare away talent altogether. But potential cabinet and high level White House posts are filling up fast from health and human services to Homeland Security.
SABATO: Nobody believes that these individuals, Larry Summers, for example, has produced every e-mail that might have been embarrassing to the President-elect or to the new administration. There simply wasn't enough time.
ACOSTA: In recent times only President Bush Sr. move more quickly. But that was to name confidante James Baker Secretary of State just days after the election. The second President Bush and Bill Clinton waited until December for their first picks.
And two of Mr. Clinton's choices for attorney general were scuttled over revelations they had hired undocumented workers. The Obama team started early to avoid getting blind sided by unexpected problems.
KENNETH GROSS, VETTING ATTORNEY FOR POLITICAL APPOINTEES: There's no question that plenty of work was done in anticipation of victory.
ACOSTA: It's a delicate balancing act. Vetting experts say the early roll out of Mr. Obama's economic team could calm markets as long as there aren't any surprises.
GROSS: I think they are pulling a high wire act is a very good term because this is high stakes. These are high-profile positions and the last thing you need is something to blow up in your face.
ACOSTA (on camera): Mr. Obama is not out of the woods yet. There are confirmation hearings coming, and one prominent Republican is promising a good old-fashioned Capitol Hill grilling. Saying in times of crisis, the public deserves nothing less.
Jim Acosta, CNN, Washington.
(END VIDEOTAPE)
NGUYEN: Let's talk about this now. The first wildfires, well, now the rain is in the forecast and that has homeowners in Southern California on edge once again. As reporter Suzie Suh with affiliate KCBS shows us, it is neighbor helping neighbor in a race against time.
(BEGIN VIDEOTAPE)
UNIDENTIFIED FEMALE: Everyone is actually pulling together and that's what this is all about.
SUZIE SUH, KCBS CORRESPONDENT (voice-over): In Yorba Linda, in all-out defense strategy --
UNIDENTIFIED MALE: (INAUDIBLE) the down steep.
UNIDENTIFIED FEMALE: Perfect!
SUH: Against Mother Nature.
BOB LANGAN, YORBA LINDA, CALIFORNIA: You have to make plans for the worst case that you can.
SUH: Because when your house is hugged by hillsides, charred by fire, the ash just days old.
UNIDENTIFIED FEMALE: Survived the fires against all odds, and now they may lose their home.
SUH: Rain in the forecast could mean a downpour of danger.
CHERYL KRUEGER, YORBA LINDA, CALIFORNIA: And now we're in a predicament of the hill's coming down and who takes care of it.
SUH: Warnings are out, sandbags and driveways and in Cheryl Krueger's case --
UNIDENTIFIED MALE: How far?
SUH: Concrete walls on guard, with an army of neighbors and helping hands.
LANGAN: I don't know the people at this house, but you know, if you can help, you can help.
SUH: Residents are hoping to shield themselves from the worst.
KRUEGER: And so now we're just trying to, you know, keep everything standing, because my kids have been here since babies.
LANGAN: Hopefully, we'll get everything done before the rain starts.
(END VIDEOTAPE)
NGUYEN: Like we said, it is a race against time and it hasn't started yet, but it will soon. Up to two inches expected in the mountain areas. Let's get the latest now on the weather situation out there. Rob Marciano has been watching it.
Rob, this is the last thing they need right now.
(WEATHER REPORT)
NGUYEN: Yes, today, in fact, so glad to see that the weather is nice. All right, thank you, Rob. You know, flying high with no wings, is it possible? Yes, it is. Take a look. A jet pack daredevil reaching new heights with his flight over the Royal Gorge in Colorado. He flew 1,500 feet, but here's the deal, the hardest part may have been actually looking down. It's 1,100 feet to the bottom of that Gorge and he was not wearing a parachute.
(BEGIN VIDEO CLIP)
ERIC SCOTT, JET PACK PILOT: It's just different than when you're over the ground. The winds are coming up and not across and you get a lot of this -- yes. I can't say enough about how good it is to be standing on terra firma. Concrete never felt so good.
(END VIDEO CLIP)
NGUYEN: Well, the jet pack holds about 30 seconds worth of fuel, not a lot, so the flight just took 21 seconds.
The space shuttle astronauts, they have finished up their final space walk by fixing one of the space station's solar rings. They also finally got a water recycling system to work. And here's what it was supposed to do, turn waste water into drinking water. It took five days for them to get it to work. Yes, that could be a problem. The shuttle is now scheduled to land on Sunday.
Fighting pirates. Another ship hijacked while word comes out that a successful anti-pirate attack may have hit the wrong target.
(COMMERCIAL BREAK)
NGUYEN: This just in to CNN. We are hearing that there's trouble at Bangkok's main airport this morning. Antigovernment protesters have moved into the terminal, causing the airport to cancel all departing flight. Now, the government has been using the airport as a temporary base. Protesters surrounded the parliament building on Monday and anti-government protestors want the former prime minister to return and stand trial on corruption charges. So, that's what this is all about.
But earlier this morning, pro and anti-government demonstrators exchanged gunfire near the airport. There's another look at the airport and situation inside. Of course, we'll continue to follow this story for you.
In the meantime, though, there is no link to al Qaeda. That is the assessment from the top U.S. general in Africa talking about pirate attacks. He says there's no evidence linking Somali pirates to the terror group. Meanwhile, though, those pirates, they have struck again, hijacking a Yemeni cargo ship.
CNN's David McKenzie joins us now from Nairobi, Kenya, with the latest on this.
Bring us up to speed. Seems like a couple of things going on here, David. DAVID MCKENZIE, CNN CORRESPONDENT: That's right, Betty. The latest we have is that that Yemeni cargo ship was hijacked somewhere in the Gulf of Aden. Probably a few days ago, that ship dropped off the radar, literally. The company didn't get any news from the company, from the ship or the crew members. But we learned from a member of the Kenya's Sea Farer's Association here in Kenya, which tracks pirate attacks as well as helps the rights of the crew man, they -- he said that that was definitely hijacked and they're waiting to see where it surfaces. Most likely going to one of those pirate dens off the Coast of Somalia, either in Eyl or Harardhere, south of Mogadishu.
But then, another startling development is about this Indian warship, which took on pirates, Betty, some last week. The Indian warship was saying that this vessel was a pirate mother ship and they returned fire to it and that ship went on fire and they said they killed some of those pirates. But now, it turns out our bureau in Thailand went to a press conference where a Thai shipping owner said that in fact was a ship of his that was in the process of being hijacked and that innocent people died in that attack and that it was known pirate mother ship.
One of his crew members was at sea for some days in the Gulf of Aden before he was picked up by rescuers. So, it does work into the argument that these navies should not attack vessels when they are under hijack.
Betty?
NGUYEN: All right. Keeping us up to speed with what is going on in this situation. David McKenzie, joining us from Nairobi. David, we do appreciate that.
In the meantime, though, there is no jail time for a British couple who got a little too friendly, shall we say, in Dubai. They were originally sentenced to three months in prison after being convicted of having sex on a beach. But now a judge has suspended that sentence. They still, though, have to pay a fine.
Well, murderers can have their lives taken, thieves sometimes get their hands chopped off. So, what diabolical crime merits this cruel and unusual punishment?
NGUYEN: All right. This is a little different. Don't change your dial. We're going to show you some justice by a different tune, shall we say. That's ahead.
(COMMERCIAL BREAK)
NGUYEN: Well, they say there's no bad publicity, but some shoplifters are becoming celebrities in a Staten Island Mall. Look at that. In a first of its kind program, a Staten Island Mall projects mug shots of convicted shoplifters on an electronic billboard. The Staten Island district attorney says the intent is not to stigmatize shoplifters, but to remind the millions plus shoppers who get tempted of what could happen. Definitely, you don't want your picture up there.
Well, it is the greatest test, though, of any court system. How do you make the punishment fit the crime? You've got to hear this story.
A Colorado judge wrestled with that challenge when facing youngsters who unleashed their blaring music on an innocent public. So the judge's solution, Barry Manilow, of course.
Details now from reporter Chris Vanderveen of CNN's Denver affiliate, KUSA.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: It's a nice town.
CHRIS VANDERVEEN, KUSA CORRESPONDENT (voice-over): If silence is indeed golden, then maybe that's why American towns have lost at least some of their luster.
UNIDENTIFIED MALE: You know, it's got noisier because there's more people.
VANDERVEEN: So in Fort Lupton, there is an ongoing lesson in this.
UNIDENTIFIED MALE: Oh, my music. My music failed.
VANDERVEEN: One person's treasure is quite often another person's trash.
UNIDENTIFIED FEMALE: Boom, boom, boom.
UNIDENTIFIED FEMALE: It makes me crazy.
PAUL W. SACCO, MUNICIPAL JUDGE: Thank you, everybody. Please be seated.
VANDERVEEN: It was Judge Paul Sacco...
SACCO: All right, I'll accept your guilty plea.
VANDERVEEN: ...who first notice something about the people who kept coming in for noise violations.
SACCO: Have you been here before?
VANDERVEEN: They were young and their parents typically paid their court fines.
SACCO: Any questions?
VANDERVEEN: So, he decided to try something else.
SACCO: This is a way I think, now that I look back of teaching manners to people. VANDERVEEN: Why the teenage members of Revolving Reverence got into trouble recently is pretty obvious.
(MUSIC PLAYING)
We'll let them tell you how it happened part.
UNIDENTIFIED MALE: What happened is that --
UNIDENTIFIED MALE: It was my dad's birthday and he asked us to play there.
UNIDENTIFIED MALE: We didn't keep check of time, we kept playing music.
UNIDENTIFIED MALE: And the cop station is like two blocks away.
UNIDENTIFIED MALE: So, yes, that's that.
SACCO: All right.
VANDERVEEN: Judge Sacco says...
UNIDENTIFIED FEMALE: Well, this is very serious.
VANDERVEEN: ...he had no other choice.
UNIDENTIFIED FEMALE: This is a punishment.
(MUSIC PLAYING)
SACCO: These people should have to listen to some music that they don't like.
VANDERVEEN: From Barney to Barry.
SACCO: Particularly Barry Manilow, I think that's -- is hard on the kids.
(MUSIC PLAYING)
SACCO: I actually like the Barry Manilow stuff.
VANDERVEEN: Should you violate the noise ordinance in Fort Lupton, you will get one hour, one really, really long hour of this.
Those who run the town say it's really cut down on the number of repeat offenders.
UNIDENTIFIED FEMALE: I want to choose my own music in my own house, not listen to my neighbor's music in my house.
(MUSIC PLAYING)
VANDERVEEN: As for the members of Revolving Reverence --
UNIDENTIFIED FEMALE: OK, that ends our class.
VANDERVEEN: Who knows, if they'll be back.
UNIDENTIFIED MALE: Yes, all of us are in to rock.
VANDERVEEN: But it is fair to say in any place where silence is still golden --
UNIDENTIFIED FEMALE: So keep the volume down.
VANDERVEEN: -- that little golden rule still applies.
With photo journalist Courtney Shores (ph), Chris Vanderveen, 9News.
(END VIDEOTAPE)
NGUYEN: Well, this just in to CNN. We have learned that Michael Vick has pleaded guilty to state dog fighting charges in a bid to speed his possible return to the NFL. We told you a little bit earlier that he was expecting to do this. And in fact, it has been done. It's a deal with prosecutors for a suspended sentence and probation. So, this again, pleading guilty, Michael Vick, to state dog fighting charges in a bid to speed possible return to NFL. So we'll see how this plays out.
There is much more to come right here in the CNN NEWSROOM.
(COMMERCIAL BREAK)
NGUYEN: We want to get you a check of the numbers today. The Dow up 60 points, lost a little bit from the open. But we'll see how it goes today. And the Nasdaq at this hour down five points. Still early, though. It's only coming up on 10:00 Eastern. So, we'll watch it for you.
In the meantime, a Georgia mom teaching her kids the value of money while having some fun at it and saving a whole lot of cash. Reporter Kim Fettig of Atlanta affiliate WGCL has the story.
(BEGIN VIDEOTAPE)
KIM FETTIG, WGCL CORRESPONDENT (voice-over): Meet Lisa Vankesteren, single mom of three -- three hungry mouth.
LISA VANKESTEREN, MOTHER: My kids eat like truckers.
FETTIG: But instead of draining her wallet...
VANKESTEREN: Find what you like.
FETTIG: ...she plays something called the grocery game, saving her hundreds and hundreds of dollars.
VANKESTEREN: It's an average of about $100 a week.
FETTIG: How does she do it? We tagged along at a local Kroger.
(on camera): All right, well, we have our list.
VANKESTEREN: All right, let's go.
FETTIG (voice-over): We start in produce.
VANKESTEREN: For 79 cents each, so I will probably get two of those.
FETTIG: Then to canned goods.
VANKESTEREN: We are going to buy six soups.
FETTIG: And on to shampoo.
VANKESTEREN: They're on sale for $2.49, but I have two $3.00 off coupons so I'm actually going to get them both for free.
FETTIG: Wait. Did she say free?
VANKESTEREN: It's free.
FETTIG: How do you buy for free? Well, back it up to Lisa's home where she logs on to the grocerygame.com.
For about a $1.25 a week, the online site tracks sales at local grocery stores and has your list and coupon ready to print.
VANKESTEREN: They find the sales, they find the coupons, they tell you what to match with which, which week to do it in.
TERRI GAULT, FOUNDER, THE GROCERY GAME: Don't be paying full prices for groceries ever.
FETTIG: Here are the key words, stack and stockpile. Stack your deals. Combine a store sale with a manufacturer's coupon on top of your frequent buyer card. The result?
VANKESTEREN: Because Kroger doubles coupons every day, I'm going to get this laundry detergent for a dollar.
FETTIG: When the deal is that low, back at Lisa's house, she stockpiles, creating a virtual grocery store in her home.
VANKESTEREN: Instead of paying $3.00 or $4.00 for one of this bottles, when I need it, I just simply come in here and get one of my $1.00 bottles.
FETTIG: Here are the hot tips for using the coupons like a card game. Hold them. Use only a coupon when the item is already on sale, doubling your value.
GAULT: And there's quite a life to a coupon, sometimes two to three months. FETTIG: Shop on hot days. Usually sales start on Wednesday, but coupons come on Sunday. To combine the two, shop Sunday through Tuesday. And rain checks. If the product is sold out at the store, the store will honor the sale price for several weeks.
VANKESTEREN: I have a lot of coupons today.
FETTIG: For the result, let's head to the register.
UNIDENTIFIED CASHIER: Your total is $119.55.
FETTIG: But add the frequent shopper card and now the coupon.
VANKESTEREN: For just about everything, there we go.
UNIDENTIFIED CASHIER: $46. 70.
FETTIG: Lisa's $119 grocery basket only cost $46.70, a grand total savings of $72.85.
VANKESTEREN: When you see a savings like $80, how can you not do it.
FETTIG: Free money.
VANKESTEREN: Free money.
(END VIDEOTAPE)
