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Stopping Mortgage Scams; Quake Kills at Least 92 in Central Italy; Daughters' Desperate Plea to President Obama; North Korea's Rocket Launch: What it Means for the U.S.; Taliban Planning "Spectacular Attacks"; President Obama Worries Auto Workers

Aired April 06, 2009 - 10:59   ET

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

TONY HARRIS, CNN ANCHOR: It is Monday, April 6th, and here are the top stories in the CNN NEWSROOM.

The government targets companies that targets desperate homeowners. Mortgage scam crackdown. The announcement live, shortly.

Plus this...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The best way to describe it perhaps is exactly just a 747 coming over very loud. You can feel the entire building swaying back and forth.

(END VIDEO CLIP)

HARRIS: Can you imagine this? A middle-of-the-night earthquake rocked central Italy. Close to 100 people are dead. Others may be buried alive.

The president in Turkey today. The final stop of his first overseas trip, working to improve America's image among the world's Muslims.

Good morning, everyone. I'm Tony Harris. And you are in the CNN NEWSROOM.

So, this hour, team Obama announces a plan to combat the growing number of home loan scams. Live pictures now from the Treasury Department. Treasury Secretary Timothy Geithner and Housing Secretary Shaun Donovan will be joined by Attorney General Eric Holder at this news conference momentarily.

As foreclosure rates rise, so are the number of companies that claim they can save your home. The new plan is expected to improve coordination between federal and state law enforcement agencies, civil enforcement authorities, and the private sector.

The swindles swelled after the president announced his housing plan in February. A refresher here.

His program is called the Making Home Affordable plan. It helps homeowners modify loans, particularly those with adjustable mortgages. The program also helps homeowners refinance their mortgage, even if they have little equity due to fallen property values.

How can you be sure the mortgage company you are dealing with is the real thing or possibly a scam artist?

Personal Finance Editor Gerri Willis has good advice, as always.

Gerri, good to see you. What kinds of scams are out there these days?

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Well, hi there, Tony.

Yes, it's hard to know how to protect yourself unless you know what the scams are, right? And let's just be clear here, these scams are through the roof. The FBI has called this kind of thing the largest, fastest, biggest growing kind of fraud out there.

Let's dig down.

First of all, this foreclosure rescue. Now, I have to tell you, when you go into foreclosure, it's not just a letter to your mailbox. It's typically published that you're losing your home.

So scam artists grab onto that. They send you a letter. They tell you, hey, we're going to help you save your house. We're going to rescue you. Just send us this check for a few thousand dollars.

Guess what? What they're really doing is stealing your home.

Then there's application fraud. This is garden variety fraud. This is lying on your application form, whether you're inflating your income, telling lies about how much money you make. This was done both by people who were applying for the loans and also by, unfortunately, mortgage lenders.

HARRIS: Got you.

WILLIS: And then there's deed and property stealing. And this is really nefarious and really catching on, too.

What happens is that a scam artist goes down to City Hall, they look up your deed, they see how you sign your signature, and then they mimic that on a deed transfer form that they can get at a local stationery store. So this is easy to do. You can see how people are really worried about this, because with deed stealing, this typically happens to older people who've already paid off their house -- Tony.

HARRIS: Well, Gerri, here's the question -- the question is, how can you protect yourself? And I'm reminded of the fact you have covered this area before. And you've told us that if you're in a situation where you believe you can get a loan modification, a mortgage modification, you don't need one of these outside companies. You can essentially take care of this, a lot of it, at least, yourself.

WILLIS: Yes. Well, exactly. You've got to know who it is you're dealing with. You typically want to call your lender first. That's really the place to start. And look, here's some signals that you're going to have some problems, what you want to avoid.

Don't pay money up front to somebody for help. That's not the way it works. Absolutely a red flag.

Don't sign something you don't understand. Look, there are a lot of deed transfer forms out there, and you could be signing one of those and inadvertently giving somebody your house. Have an attorney look at any forms you file.

And finally, check out the people you're working with. Go to the local Better Business Bureau or go to their Web site online, BBB.org. It's essential you get up on this, because I'm telling you, Tony, it's creating havoc for people all over the country.

HARRIS: Yes. Good advice as always, Gerri. Good to see you. Thank you.

WILLIS: My pleasure.

HARRIS: You know outsourcing jobs, sending them overseas where labor costs are cheaper. Well, last hour, the giant student loan servicer Sallie Mae announced it will return 2,000 positions to the United States. These are mostly call center jobs in India and the Philippines. Sallie is bidding for a new 10-year loan servicing contract from the United States Department of Education.

And live picture nous. As you can see, Air Force One. In just a couple of moments, the president is going to live the airport there in Ankara, Turkey, and make his way to Istanbul. A very busy day continues for the president.

We will continue to follow his travels overseas, right here in the CNN NEWSROOM.

(WEATHER REPORT)

HARRIS: Binghamton, New York, remembers the victims of a horrific shooting at an immigrant services center. Fourteen people, including the gunman, died there Friday. Officials have identified the shooting suspect as a Vietnamese immigrant. They say he may have had trouble assimilating.

Binghamton Police are defending their response to the shooting. Records show officers waited 40 minutes before entering the building, but officials say no one could have been saved if police had entered sooner because the injuries were so severe.

In Pittsburgh, a search for answers. Three police officers were killed in an apparent ambush Saturday. Two other officers wounded.

A police report says the suspect, a 22-year-old, had been fighting with his mother about a dog urinating on the floor. That led her to call 911. Police were fired on when they got there and a four- hour standoff followed. One of the officers killed was a 14-year veteran of the force.

Here's Pittsburgh Police Chief Nathan Harper.

(BEGIN VIDEO CLIP)

NATHAN HARPER, PITTSBURGH POLICE: And right now, as I stated, we're giving all our concentration and efforts on making sure that the family is provided and supported, as well as the other officers. They also need a lot of counseling and support as well.

(END VIDEO CLIP)

HARRIS: Those who know the suspect say he has an affinity for guns and feared his would be taken from him. He is in the hospital with a leg wound facing murder charges.

A strong earthquake left a medieval Italian town in ruins today. Italy says at least 92 people were killed, others may be trapped.

Journalist Delia Gallagher is in central Italy for us.

And Delia, if you would, tell us exactly where you are, where this -- where this earthquake struck with pretty devastating power.

DELIA GALLAGHER, JOURNALIST: Tony, right now I'm standing in front of a school dormitory, which half of the side has been ripped off and there are believed to be students trapped under the rubble. I'm here with some of the friends of these students and some of the relatives.

I have to tell you that we're now more than 24 hours into this earthquake. It hit in the middle of the night here in L'Aquila, which is central Italy. It's on a fault line. They have had earthquakes here before, but nothing this devastating as this in quite some time.

And now that some hours have gone by and emergency services have been working through the early morning and through the day in the hot sun, I have to say the town has kind of gotten very quiet, because those people who were alive under the rubble have been rescued. And just a moment ago, I was standing with a young girl who was waiting for news of her sister, and her sister was pulled out and she did not survive.

So you can imagine that the few people who have remained in this town, because most of them have evacuated, are those people who are relatives and friends of people trapped inside. And it's a very eerie moment right now because, unfortunately, after so many hours, there's not too much hope at this stage -- Tony.

HARRIS: How would you describe the pace of the rescue effort right now? I'm just wondering if that town, L'Aquila, has what it needs in terms of the kind of equipment necessary to effect this kind of a rescue effort. GALLAGHER: Well, I have to say, I've been very impressed, even coming from Rome. They immediately blocked off the highway to allow for emergency services to come from other parts of Italy to this town.

Again, they are used to earthquakes, so they do have fairly good emergency services to get on the scene very quickly. The problem is that it's this town and lots of small towns surrounding it. And as you know Italian towns, they've got small, ancient roads, and sometimes it's tough to get access. But from what I can see, the town right now is completely filled with fire trucks and emergency services that have been working really since the early hours of the morning.

The question, Tony, that the Italians are asking themselves is, why weren't some of these buildings earthquake-proof? Because a lot of the buildings that have collapsed are modern buildings.

There's been some damage in the historical center, which is that medieval town you were talking about. But those are two kind of churches and monuments. But the places where the people live have been built since the '50s or so, and they should have been up to standards. So that's something that Italy will be asking itself in the coming weeks.

HARRIS: Absolutely.

Delia Gallagher for us in L'Aquila, Italy, central Italy.

Delia, good to talk to you again. Thank you.

GALLAGHER: Thank you.

HARRIS: Two girls write the president a letter to help their dad find a job this week. They could lose their home.

(COMMERCIAL BREAK)

HARRIS: With time running out, two young Washington State girls have written a desperate plea to President Obama. Their dad needs a job, and quick.

The heartbreaking story from Dan Lewis from affiliate KOMO.

(BEGIN VIDEOTAPE)

LILIAN DECK, WROTE LETTER TO PRESIDENT OBAMA: My name is Lilian Deck, and my sister and I live in Spokane.

DALEEN DECK, WROTE LETTER TO PRESIDENT OBAMA: We would like to ask you a question. Where is the help that you promised us in your campaign?

DAN LEWIS, REPORTER, KOMO (voice-over): Ten-year-old Daleen Deck and her 13-year-old sister Lilian wrote this letter to the president after watching their father struggle to find a job.

D. DECK: My father does not want a handout. He wants a job. L. DECK: He has sent out over 300 resumes in the past year with no luck. And we know that because we had to lick the envelopes.

LEWIS: Henry Deck lost his job a year ago. And tomorrow he'll lose his home to foreclosure.

HENRY DECK, LOST JOB: Tomorrow my house goes up on the auction block.

L. DECK: Why do you and Congress keep failing this country over and over?

LEWIS: Lilian's letter rips Obama's stimulus plan for helping banks and big business before helping families like hers.

H. DECK: We didn't have a subprime mortgage. We had a regular mortgage. So when we went and asked for help afterwards, there is none because we don't fall in the guidelines.

LEWIS: Now his two girls are living the reality of the recession.

L. DECK: I'm most worried about where we're going to live.

D. DECK: Where will we live? And how will we?

H. DECK: If I lose my house, I may lose my children, too.

LEWIS: Deck is praying for a last-minute miracle.

H. DECK: I don't know. We may be living out of our car.

LEWIS: The girls hope this letter might bring one.

D. DECK: Mr. President, may God bless you and the United States and help you do the right things for this country.

(END VIDEOTAPE)

HARRIS: So many families in that same situation. Literally millions of Americans looking for work. And the bills just, as you know, keep piling up. And a new report says consumers are falling behind on their payments at a record clip.

Susan Lisovicz is at the New York Stock Exchange with details.

And those girls, they break your heart.

SUSAN LISOVICZ, CNN BUSINESS CORRESPONDENT: They do break your heart. And this is a natural consequence of what you see with a rapidly rising unemployment rate, these kinds of disturbing records.

This one, Tony, coming from the American Bankers Association, saying that it is seeing more than three percent of consumer loan payments are now -- or I should say were more than 30 days late in the fourth quarter. That was a record. Now, we're not only talking about mortgages here. We're talking about auto loans, consumer credit cards. And analysts say that basically, you know, this is what you see in a recession. It's going to affect all kinds of loans because people just don't have the money.

But one thing that's also very interesting and disturbing, Tony, and it's particular to this housing crisis that we're seeing, is that typically, folks pay their mortgage -- they make their mortgage payments first. And now you're seeing a growing number of consumers walking away from their mortgages, not paying those. They just expect that they're going to lose the house.

The payments that they are making, their car loans and their credit cards. Why is that? They still want to use their car. They still want to have access to that credit card. And that's the phenomenon of the upside down mortgage, where they owe more on the house than what it's worth -- Tony.

HARRIS: So the credit cards keep you with some cash, or the ability to make some purchases. And the car gives you an opportunity to maybe go out and find that new job.

LISOVICZ: Go look for a job. That's right.

HARRIS: Right. Well, Susan, recently we've had some upbeat economic reports. But I guess the bottom line here is that people can't pay their bills. Won't this economy just continue to slide?

LISOVICZ: Yes. And I think that's one of the things that you see in a recession like this, where it just -- you know, you can't not stop it from -- you know, from just -- from the ramifications, from growing.

In fact, we have a very prominent banking analyst today that said that loan losses will exceed the levels seen in the Great Depression. And what's interesting about his analysis is that he said the mortgage losses are only halfway to their peak. Credit card and consumer losses in general are only one-third of their way to their expected peak.

So we're seeing a big sell-off in financial stocks. And, of course, we're seeing an overall sell-off in the market today, not surprising given the run-up we've been seeing.

But what this analyst said is that it's a rolling recession in asset classes when it comes to loans. And so, you know, eventually, you're going to see stimulus take effect and you're going to see some of the -- all of the programs to stabilize the banking sector take effect. But it takes a while for companies to regain that confidence...

HARRIS: There you go.

LISOVICZ: ... and for consumers to start spending, for companies to start hiring. It takes a while in an economy this size. And you're seeing the sell-off. The investor sentiment not so good today -- Tony.

HARRIS: So, despite the sell-off today, I want to tease ahead a little bit here, because I know you're back with us in the noon hour. And we're going to talk about some of those encouraging signs we've seen with some of the reporting lately, and the nice run-up corresponding to some of that reporting for the markets, because -- and I don't know about you, if you're getting the same thing, but I'm hearing a lot of people who are telling me, "Tony, I know it's bad, I know it's bad, but you're dwelling too much on the bad news. When you get some positive news, will you please share it with us?"

So let's do a little bit of that, keeping those numbers in proper context in the next hour. Is that all right with you, Susan?

LISOVICZ: You can count on it -- Tony.

HARRIS: Yes, let's do that. All right.

Susan Lisovicz at the New York Stock Exchange for us.

And if you're looking for a job, some of the best advice we get over and over again here is get out there and talk to people.

Personal Finance Editor Gerri Willis joins us again with her top tips. That's next.

(COMMERCIAL BREAK)

HARRIS: Pink slips for two million Americans this year. And it is only April. To find another job, make sure your search strategy fits the 21st century.

Personal Finance Editor Gerri Willis is back.

And Gerri, let's see, how do we start this? How can workers update themselves for today's market?

WILLIS: Well, you know, look, just sitting in front of your computer, Tony, and e-mailing out resumes, that's not going to cut it. It's reported that t he percentage -- listen to this, the percentage of online applications viewed by actual human beings ranges from five percent to 25 percent.

So what's happening here is a lot of companies are using software programs that screen and rank candidates. So when you craft your resume, you've got to keep that in mind. Use the same phrases, key words you find in the ad or the job description, and make sure you keep up your networking.

That doesn't only mean joining associations and subscribing to trade journals. It means putting yourself online through social networking sites like LinkedIn, Facebook, Twitter. You've got to get out there, but you've got to get out there in the right way.

HARRIS: I just found out about this whole LinkedIn thing. It shows you how far behind I am. Let's circle back to the resumes for just a moment here. Any advice for updating resumes?

WILLIS: Well, OK, when it comes to your resume, your regular old-fashioned paper is not enough. Go to VisualCV.com.

Now, that's a Web site. It creates an interbased resume for you. And you can include video, pictures, audio, graphics, all these components into an online resume. And guess what? It's free. Yes, free.

HARRIS: Visual -- what is that? Oh, shoot, we just moved the -- what is it, Visual -- there it is, Visual...

WILLIS: VisualCV.com.

HARRIS: Nice.

WILLIS: You put it all together online. And let's say you still have your job. Well, you can lock out people that you don't want to see it. So you can make it available only to the people that you do want to see it.

HARRIS: Yes, nice.

How can a job hunter focus his or her search, Gerri?

WILLIS: Well, you really want to target your job search. You know, the answers are on the Web, right?

If you're a teen or a recent graduate, maybe you're just looking for part-time work for the summer right now, check out snagajob.com or teensforhire.com. Great Web sites.

Now, if what you're looking for is freelance or contract work, check out sologig.com, guru.com. They'll teach you how to do that kind of work, and it's kind of complicated because you have to sign contracts. There's a lot going on.

One of the hardest hit populations in the recession, older workers. These folks tend to be out of work longer than younger people.

Go to -- this is a great Web site: aarp.org/realrelief. The site is designed for older workers. It lists employers who have age- friendly hiring practices.

And of course, no matter what field you're exploring, you'll want to do some homework. Listen to this -- glassdoor.com has anonymous company reviews written by employees and ratings on compensation data. So you can get inside information for free.

For a recap of these Web sites, though -- because I went through a ton of them, right?

HARRIS: Yes. WILLIS: CNNMoney.com/helpdesk. And of course, if you have any questions, send them to me at gerri@cnn.com.

HARRIS: You are awesome. Thank you, Gerri.

WILLIS: My pleasure.

HARRIS: Take us to see The Boss. It has been a mess for Ticketmaster, and now that company gets a subpoena. Just click on CNNMoney.com.

The Boss -- there you go.

President Obama in Turkey. Why this trip is important to the men and women serving in the U.S. military.

(COMMERCIAL BREAK)

HARRIS: President Obama trying to rebuild relations with a key ally. The president is in Turkey, where he spoke to the parliament earlier today. He told lawmakers, "The United States is not and will never be at war with Islam." U.S. approval ratings in Turkey dropped to dismal levels during the Bush administration, mostly due to the Iraq War.

So why is Turkey such an important ally to the United States? Turkey has the largest army in NATO after the United States. It's also in a key strategic location bordering both Iraq and Iran. President Obama has called on Turkey to work side by side with the U.S. to resolve conflicts across the Middle East.

CNN's Frederick Pleitgen joins us live from Baghdad with more on Turkey's strategic importance.

And if you would, Frederick, let's start with this -- remind us again of just how important Turkey is to the American effort where you are in Iraq.

FREDERICK PLEITGEN, CNN CORRESPONDENT: Well, to the American position, Tony, it certainly is a whole lot more important than the role that Turkey is playing right now. I mean, one of the things that the U.S. is doing, it's supplying some of its troops through routes in Turkey. That is still way below the levels the U.S. military would like it to be.

Now, one of the things that the Obama administration is, of course, pushing for is to try and get Turkey to open up more, to open up those routes for the troop withdrawal that's going to be happening very soon. So it's very important for U.S. troops to be able to get out of Iraq through Turkey.

And also, perhaps, use an air base in Turkey, the Incirlik (ph) Air Base to air lift troops out of the whole area to then deploy them to places like Afghanistan or back home.

So certainly, it is a country that potentially holds very great importance and has been below that potential for a very long time for the reasons that you mentioned. For all the - for the fallout that there was before the Iraq War, Tony.

HARRIS: Well, let's - let's move on on that very score. The president is calling for Turkey to play a bigger, positive role in mid gating tensions in the broader Middle East. I wonder if there is more Turkey can do, once again, in Iraq? And particularly, I'm thinking of in the north of the country where we certainly saw cross-border fighting last year.

PLEITGEN: Yes, you're absolutely right. We saw a lot of cross- border fighting last year. We saw some massive air raids there last year. And that's certainly one of the things that Obama was playing to in his speech today when he mentioned the PKK, that Kurdish underground group in one line with al Qaeda and specifically named it as a common enemy of the U.S. and of Turkey.

So what Obama is doing is he's offering great support to Turkey in the fight against PKK. But on the other hand, he's also calling on the Turks to take up a more moderate role towards the government of the Kurdish regions. Because, as you know, the Kurdish regions here in Iraq play a major role. It's the most stable area in Iraq right now. So it is one that plays a big role in bringing this country back on track. So someone that the U.S. wants in their boat. And they know the Turks could have a great influence on that.

And one of the other things that I want to talk about which I think is very important is, of course, economic relations, because Turkey is also a major economic power house in this region and one of the most important trading partners for Iraq. So it could play a major role getting security back in gear through trade relations with Iraq. And that is certainly something that the Obama administration is looking to, Tony.

HARRIS: Got you. And one more quick one here, Frederick. Multiple attacks today show the situation where you are in Iraq is still volatile. Could these attacks affect a planned U.S. military withdrawal from the country?

PLEITGEN: Well, you know, the U.S. military has always been telling us that they don't think attacks like these - and there have been bigger attacks in the past couple months - they don't think that these attacks can affect the speed of the troop withdrawal here from Iraq.

Now, Iraqi politicians will tell you very different things. I've been talking to a couple of very high-level cabinet ministers here in Iraq. And they said that any troop withdrawal that happens here from Iraq has to be in line with the security situation and has to take into account the security situation here in this country. And what we saw today, those terrible attacks with 32 people getting killed, well over 100 people being wounded, are a stark reminder that the security situation here is very volatile and that the Iraqi security forces are still well behind where they should be, Tony.

HARRIS: Fred Pleitgen for us in Baghdad. Fred, appreciate it. Thank you.

The U.S. is calling for a clear and strong response to North Korea's weekend rocket launch. The U.S. military says the launch itself was a failure. But analysts say it probably moves North Korea closer to developing a missile that could reach the United States.

Details now from Pentagon correspondent Chris Lawrence.

(BEGIN VIDEOTAPE)

CHRIS LAWRENCE, CNN PENTAGON CORRESPONDENT (voice-over): North Korea's missile launch set off reactions around the world. Its allies, China and Russia, urged calm. But South Korea called it reckless and President Obama demanded action from the U.N. Security Council.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: North Korea broke the rules. Once again.

LAWRENCE: North Korea claims it put a satellite into orbit, but U.S. defense officials say it failed.

(on camera): Here's the launch site on the eastern side of North Korea. U.S. Navy missile destroyers are positioned here and here on both sides of Japan.

Stage one of the rocket falls right here in the Sea of Japan, roughly where the North Koreans thought it would.

But then a few minutes later, something goes wrong, because the satellite does not make it into orbit and part of the rocket falls here into the Pacific Ocean.

(voice-over): U.S. officials say the payload did not separate successfully during the last stage. But North Korea was able to control its rocket through that point.

LT. GEN. TREY OBERING III, U.S. AIR FORCE (RET.): That is a significant step forward for any missile program, because oftentimes those missiles become unstable as they go through these staging events.

LAWRENCE: This was a more advanced rocket than the one North Korea launched in 1998. And it improved the range from a similar test in 2006 when the missile blew apart 40 seconds after launch.

But experts say the longer test gave the U.S. military more to study.

CHARLES VICK, GLOBALSECURITY.ORG: I think, for the first time, we've gotten full images of the entire vehicle. I don't think we've ever fully had that except back in 1994 when we saw the mock up of the concept of it.

LAWRENCE (on camera): And the U.S. can incorporate that into its own missile defense systems. Experts say the missile could potentially reach Alaska and Hawaii and could carry a nuclear warhead. Now, North Korea is not there yet, but there's a concern it could sell the technology it does have to other nations which may be developing their own nuclear programs.

Chris Lawrence, CNN, Washington.

(END VIDEOTAPE)

ANNOUNCER: You're watching CNN, you're severe weather headquarters.

HARRIS: That means it's time to get back to Rob Marciano in the Severe Weather Center.

(WEATHER REPORT)

HARRIS: Restructuring American automakers. People who supported the president last fall aren't so sure this spring.

(COMMERCIAL BREAK)

HARRIS: Coolest theme music on the network.

Feathers and fluff. Let me see if I can handle this alliteration. Feathers and fluff flung in several cities this weekend - it's up, it's good. It was International Pillow Fight Day in case you didn't know. The event organized on social networking websites.

You know what? That calls for a trip to CNN.com's iReport Desk. Let's check in with one of the - well, there she is.

And boy, Katie, good to see you - Katie Hawkins-Gaar.

And I would imagine, if we're talking about pillow fighting here, the pictures are pretty good, huh?

KATIE HAWKINS-GAAR, CNN.COM PRODUCER: Yes, they're amazing. Thousands of people all around the globe participated in World Pillow Fight Day and we've got some great iReports.

First one I want to show you is from Wall Street and this video gives you a good idea - take a look at this.

HARRIS: That's good. That's good.

HAWKINS-GAAR: It gives you a good idea of how many people took place. It almost looks like a protest, but it's not. It's just people enjoying a giant pillow fight.

This iReport's from Rob Harper, and he said about 1,500 people joined the fight and that it lasted nearly an hour. He said that people were pretty tired by the end of it.

HARRIS: Well, that looks good. I mean, it's a good workout, then, if it lasted for nearly an hour, huh?

HAWKINS-GAAR: Definitely. I know. I think my arms would be tired.

HARRIS: I just wonder if anybody was knocked out.

HAWKINS-GAAR: Right, yes.

HARRIS: I'm way to aggressive. I'm sorry. I'm sorry. Go ahead, Katie.

HAWKINS-GAAR: So the next one I want to show you is from Boston and this comes from Ashley Porter. And she didn't just cover the fight, she jumped right in the action.

Let's take a look.

(BEGIN VIDEOTAPE)

ASHLEY PORTER, CNN IREPORTER (voice-over): A website revealed the location at midnight. That afternoon, all...

... these...

... people...

UNIDENTIFIED MALE: For liberty! For justice!

PORTER: ... showed up for a huge pillow fight.

UNIDENTIFIED MALE: Get 'em! Get 'em! Destroy!

PORTER: For "The Tough Love Trio" (ph), the fight was a team effort.

UNIDENTIFIED MALE: I'm thinking we've got to band together.

PORTER (on camera): So, I hear there's no real strategy to this. You kind of just grab the pillow by the bottom, run in and watch the feathers fly.

(voice-over): Some supposedly immortal warriors tried to sit on shoulders to get above the crowd.

UNIDENTIFIED MALE: They're like zombies! You have to destroy the head!

PORTER: But one wrong move and he got pummeled by pillows. Those screams filled the air just like feathers in a crowd that's already training for next year's showdown.

In Boston, I'm Ashley Porter.

(END VIDEOTAPE)

HAWKINS-GAAR: So it looked like she got whacked kind of hard by that pillow.

HARIS: Yes, I'm all for that. I mean, come one, you're in the game, you're in the game.

HAWKINS-GAAR: Exactly. But we talked to her and she said she was OK and everybody had an amazing time.

HARRIS: Hey, that is terrific. She really sort of filed a full-fledged report there, didn't she?

HAWKINS-GAAR: I know. She edited it and everything. It was excellent.

HARRIS: She's lobbying for more than just being an iReporter so keep an eye on her, Katie-Katie.

HAWKINS-GAAR: Yes, we will.

HARRIS: Good to see you.

HAWKINS-GAAR: Good to see you, too.

HARRIS: All right, thank you.

HAWKINS-GAAR: Thanks.

HARRIS: How about this? A big night for country music star Carrie Underwood. The former "American Idol" wins the top honor at the Academy of Country Music Awards. It is the first time a female artist has been named "Entertainer of the Year" in almost a decade and only the seventh time the awards show in 39 years of this show.

(COMMERCIAL BREAK)

HARRIS: New threats coming from the Taliban. They're believed to be planning massive attacks as thousands of U.S. troops head to Afghanistan.

Our Pentagon correspondent Barbara Starr has the exclusive. She's traveling with the Marine Corps commandant in the line of fire.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): Despite the violence across this region, General James Conway commandant of the Marine Corps, came to Forward Operating Base Delaram to see firsthand some of the threats facing the 8,000 Marines headed this way. The Marines, part of the administration's new counterinsurgency strategy to increase troop levels on the ground.

Across southern Afghanistan, the news is not good. In an exclusive interview with CNN, the only news organization traveling with Conway, the general warned of new Taliban threats.

GEN. JAMES CONWAY, COMMANDANT, U.S. MARINE CORPS: There is, we believe, increased enemy involvement in the south. They are going to try, I believe, to create spectacular attacks before an increased U.S. presence can be brought to bear. STARR: Conway also revealed there is no intelligence the Taliban now could have heavy-caliber machine guns that can potentially shoot down helicopters. The general chooses his words carefully.

CONWAY: There are rumors, there are intercepts, there are indications that there could be something like that in the region in weeks and months to come.

STARR: The Marines already here are being hit by a growing number of roadside bombs and suicide attacks. Conway says it's a war that could go on for years.

CONWAY: I think in terms of the requirement to accomplish what the objectives are right now, it's not going to be done in a short period of time.

STARR (on camera): As more Marines move into southern Afghanistan, the next step? They will start moving out. Out into the towns and villages across this very troubled region trying to bring more security to the people of Afghanistan.

Barbara Starr, CNN, Forward Operating Base Delaram.

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HARRIS: A solemn return from war seen publicly for first time in 18 years. The flag-draped casket bearing the remains of Air Force Staff Sergeant Phillip Myers was flown into Dover Air Force Base in Delaware last night. The military allowing media coverage of the return after receiving consent from Myers' family.

The Obama administration overturned a policy from the first Gulf War that barred such images. That policy was presented as a way to shield grieving families, but critics say the government was trying to hide the human cost of war.

Myers was killed Saturday in a roadside bombing in Afghanistan. He was 30 years old.

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HARRIS: The death toll keeps climbing in Italy following a powerful earthquake overnight. We will take you live to a location near the epicenter next hour. The search intensifies for people buried alive.

And we're live on Wall Street. Stocks pulling back some this morning after a four-week rally. We will look at what's driving the markets.

On the "Road to Rescue," some autoworkers fear that President Obama is driving their industry further from the hole.

Our John King talks to some of the worried employees.

(BEGIN VIDEOTAPE) JOHN KING, CNN CORRESPONDENT (voice-over): Brenda Carter in the kitchen, enjoying her first day of retirement.

BRENDA CARTER, RETIRED GM EMPLOYEE: Well, it's wonderful. I woke up this morning at 3:30. And I let the clock go off and I hit it and went back to sleep.

KING: Happy with a chance to sleep in. Not happy, though, with the White House that forced out the boss who signed the certificate marking her 30 years at General Motors.

CARTER: I don't believe that the government should actually run the businesses. Yes, we need help from them, but to say that the president tells a company CEO that he has to leave, I just don't believe that should happen.

KING: Make no mistake, Brenda Carter says she loves President Obama, but her concerns are proof of the risk Mr. Obama faces as he takes an aggressive role in the restructuring of GM and Chrysler. Already anxious about their job security, many blue collar autoworkers who backed Mr. Obama in last year's election are nervous about the administration's heavy, hands-on role now.

MIKE O'ROURKE, PRESIDENT UAW LOCAL 1863: How many automobile makers are in Washington? You know? They're not doing a real good job with the banks either. So, so I'm a little skeptical.

KING: Mike O'Rourke is president of the United Workers Local in Spring Hill, Tennessee. Bring up the big AIG bonuses and O'Rourke gets visibly annoyed at the democratic White House.

O'ROURKE: They say we can't break those contracts, but by God, we can break the UAW contract and we're going to give them a haircut. And you know, I - fundamentally, are we really on the right path here in this country? I wonder every day.

KING: The union chairman, Mike Herron, is more diplomatic about the White House role.

MIKE HERRON, CHAIRMAN, UAW LOCAL 1853: I'm always concerned when you get that high degree of involvement. But we've got a great degree of trust. They've thrown the lifeline out there. They've helped us through some very difficult times.

KING: Herron says the blue collar doubts about Mr. Obama are borne of a bigger, gnawing uncertainty as GM seeks more wage concessions and more plant closings.

HERRON: You got to earn your way every day and you then you've got hope and pray that you're not one of the plants that ends up on the closure list.

KING: The Spring Hill plant is tucked among gorgeous rolling hills and farm land. It is a reminder that GM has tried to remake itself before.

CARTER: So I was there at the beginning where they experience. I love Saturn with all my heart.

KING: Brenda Carter remembers the launch of the Saturn brand and the sleepless nights before Spring Hill built this last Saturn in early 2007.

CARTER: It bothered me so much, I just woke up and I just wrote a poem, you know, about the Saturn.

KING (on camera): What did you say in the poem?

CARTER: Good-bye to the coupe. And I talked about how we - the - how we...

KING: Emotional in an upbeat way about the Saturn in the garage. Two hundred and sixteen thousand, seven hundred nineteen miles and counting.

CARTER: I helped build this.

KING (on camera): Yes? So it's your baby.

CARTER: It's my baby.

KING (voice-over): Brenda Carter thinks GM is wrong to give up on the Saturn brand and worries now the president she loves might make some wrong calls in his oversight of GM. But she isn't ready to give up on Mr. Obama or on the company she gave 30 years.

CARTER: The president is not going to be right all of the time, you know? So, I'm not going to judge him on just one thing that I think that should happen. I have every confidence that, that we will survive and we will do everything we can to help it survive.

KING: John King, CNN, Spring Hill, Tennessee.

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