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Severe Weather Strikes Country; American Captain Still Held by Pirates; How Secure are Bank Accounts?; Chicago Residents Fixing Own Streets; Destructive Weather Continues to Plague Midsection; Earthquake Aftershocks Continue in Italy; Soapmaker Comes Out Clean in Recession; Injured Army Vet Now a U.S. Citizen

Aired April 10, 2009 - 13:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: Tony, thanks.

Fiery, windy and deadly. Wildfires rage, twisters strike, and hundreds of people get caught in their path. An American hero becomes an American citizen. He served the country with honor. Now the country is serving him back.

She's in the soap business. No, not a sappy drama but dollars. And she knows how to keep your company from going down the drain.

Hi, everyone. I'm Kyra Phillips, live from the CNN world headquarters in Atlanta. You're live in the CNN NEWSROOM.

We want to start right now with the small town of Mena, Arkansas. It's actually mourning its dead this hour from taking a direct hit from that tornado. At least three people, we're told now, lost their lives when the twister dropped from the sky last night.

Oklahoma and Texas have also felt the fury of that violent weather. Wildfires spanned by the high winds, we're told, have killed at least two people and burned dozens of homes to the ground.

Also Reynolds Wolf is following the story for us here in the severe weather center, and also CNN's Ed Lavandera covering the wildfires in Midwest City, Oklahoma.

Reynolds, let's go ahead and start with you.

REYNOLDS WOLF, CNN METEOROLOGIST: The latest we've got for you is that we're seeing more severe weather move into parts of Kentucky. We've been talking about Tennessee and obviously Arkansas for a good part of the day. But we're going to zoom in right now into parts of southern Kentucky near the town of Madisonville near Hopkins County.

We have one cell that just popped up a short while ago, seen by two trained weather spotters: a tornado on the ground driving to the northeast, about 15 to 20 miles an hour, south of Owensboro and back towards Henderson. We're going to keep a sharp eye on that.

But we also keep a very sharp eye on the town of Nashville. A little bit more to the west. You'll see intense line of thunderstorms. We've had some history, of course, of some tornado warnings. One in effect right near Clarksville. These storms also going eastward, creating a great deal of deadly lightning, some large hail, damaging winds. And of course, with some heavy rainfall there's going to be the potential of some flash flooding.

And also due south on parts of 65, we're seeing some intense cells near Franklin and Columbia. This is going to be the beginning of what we could see this as we make the way through the afternoon hours because we've got the only elements together. Plenty of that gulf moisture. You get that frontal battery that is pulling from west to east.

At the same time, you have, again, just the unstable air mass. A little bit of the daytime heating that we had earlier in the day. This is going to be something we're going to see unfold, not just through the afternoon but into the evening hours. And it is also something we could see into parts of the overnight, possibly even early tomorrow morning. So certainly, we have our work cut out for us.

We can see the scene that we had in Arkansas play out once again in other parts of the U.S.

PHILLIPS: OK, Reynolds. Thanks so much.

We're going to take folks over now to Midwest City, Oklahoma. That's where entire neighborhoods have been reduced to ashes. That's where CNN's Ed Lavandera is right now.

Ed, what can you tell us?

ED LAVANDERA, CNN CORRESPONDENT: Kyra, the way the firefighters described what happened in these subdivisions in these various parts of Oklahoma yesterday was firefighters raging through here. They barely -- say they barely had enough time to put out the fires as they had to move to the next one.

But look at this yard, completely scorched by the flames yesterday, leading you up right to the edge of the home. This house, essentially, on the brink of disaster. Same thing with this house over here.

But you look across the street, and you see the destruction and the devastation that these fires brought through here yesterday. As you walk around, it really does seem reminiscent of the destruction you would see in a tornado. These two homes destroyed, where the neighbors left intact.

And the reason why is firefighters described as they were battling the flames just on the edge of the subdivision and near these homes that the wind was kicking up the embers and essentially creating fireballs that would jump over the firefighters. And they would land in places like this, and this is what would happen.

So an incredibly tense day yesterday, and firefighters today essentially having to go back to various areas they battled yesterday and douse everything with water to cool everything off. In the meantime, they continue to follow and keep track of the winds, because that was the enemy yesterday. And so far today the winds have died down considerably, but they are still gusting at times up to about 20 miles per hour, but that is much better than what they saw yesterday that in some cases reached hurricane force winds, 75 miles per hour. So you can imagine what it must have been like to fight these conditions yesterday -- Kyra.

PHILLIPS: Ed, thanks so much.

We'll go from you now to Mena, Arkansas. And that's near the Oklahoma state line. Incredible damage after last night's tornado. The twister killed three people, destroyed homes, businesses, a school, a hospital. It made the county jail unusable. National Guard troops are now patrolling the downtown area.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: The basketball hoop started flying through the air. And my husband grabbed his grandmother. And we all huddled in the living room floor while glass was breaking and hitting us. And luckily all of us and our animals are fine.

(END VIDEO CLIP)

PHILLIPS: Well, right now emergency crews are having to deal with ruptured gas lines, downed power lines and also fallen trees.

Glimmers of hope. President Obama says the U.S. economy is starting to see them, wrapping up a meeting with top economic advisers just last hour. The president says the effects of new tax cuts are showing up in people's paychecks for the very first time. Plus, he says, lending is starting to flow again in frozen credit markets, but at the same time the president warns that this recession is not over yet.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Now, we have always been very cautious about prognosticating. And that's not going to change just because it's Easter. The economy is still under severe stress. And obviously, during these holidays, we have to keep in mind that whatever we do ultimately has to translate into economic growth and jobs and rising incomes for the American people.

(END VIDEO CLIP)

PHILLIPS: All right. We've heard from the commander in chief. Now we want to hear from you. Are you seeing glimmers of hope, or does your financial future remain dim? We're taking your e-mails, putting a number of them to the treasury secretary's top advisers. Gene Sperling's joining us. And we'll take the e-mails to Gene.

Also, FDIC chief Sheila Bair, one of the budget bigwigs who had the president's ear today. It's her agency's job to keep your bank account safe and insured, and in normal times that's no problem, but these are not normal times. We're going to find out how solvent the FDIC is from our personal finance editor, Gerri Willis.

And here we are heading into the weekend now. How much longer can the pirates standoff go on off the Somali coast? Well, Captain Richard Phillips, the hostage, tried to end it himself by jumping out of the life boat and making a swim for it. Some of the pirates jumped in the water and hauled him back.

The USS Bainbridge, floating a few hundred yards away, powerful and kind of powerless at the same time. Another Navy vessel is on its way. The Halliburton now in the area. Bigger pirate mother ships out there, too, as part of this chess game.

Well, there's a report that the pirates will kill Captain Phillips if they're attacked and that they want to get him to shore to negotiate a ransom from there. You can imagine what the Phillips family is going through, but they're getting a lot of support from their community.

Stephanie Elam joins us now from their hometown of Underhill, Vermont -- Stephanie.

STEPHANIE ELAM, CNN CORRESPONDENT: Hi, Kyra.

Yes, it's a small town that we're in here. It's a close-knit community. Everyone knows who everyone is. Even if they're not best friends, they know where you live and they'll probably see you in the general store right around the corner.

Yesterday we were hoping to hear from the wife of Captain Phillips, Andrea Phillips, but she became too overwhelmed and said that she just wasn't ready to speak. She was holding out for good news before she wanted to do that. But we were able to speak with their priests, and also with a woman who owns a shop right down the street from the Phillips' home.

(BEGIN VIDEO CLIP)

FATHER RICK DANIELSON, ST. THOMAS CHURCH: People are very concerned. Everybody is very concerned. Everyone has been very hopeful that this, like I said, it's going to have a happy outcome. And people have been -- people who really know the Phillips have been, I understand, just wonderful in giving them all kinds of support, not only their prayers, but also more tangible support, too.

LAURA WELLS, WELLS CORNER MARKET: We're still hoping and praying that, you know, maybe he can do it again, and the Navy will be more prepared that he might do something unexpected.

He's a family man. Very devoted to his family. His children are wonderful, and he's a wonderful family man.

(END VIDEO CLIP)

ELAM: Now what we definitely have heard is that Captain Phillips is as devoted to his family as he is to his crew when he is not on land. And so they're saying what he's done so far does not sound like it's out of character for him, that he's going to fight to make sure that he gets back here so that he can see his loved ones, Kyra.

PHILLIPS: Imagine everyone is thinking about that homecoming. I can just imagine what it will be right there in his home town. Stephanie thanks.

Making your home more affordable, just a mouse click away. I'm going to show you how to take full advantage of those rock-bottom mortgage rates in just a second.

(COMMERCIAL BREAK)

PHILLIPS: Frantic rescue attempts for a driver who doesn't even know that he's in trouble. A Michigan police officer rushes to help save an unconscious man, trapped in a burning car. That officer got there just in time. Some Good Samaritans were having trouble breaking a window. Well, enter hero cop Mark Krutell.

(BEGIN VIDEO CLIP)

OFFICER MARK KRUTELL, CLINTON TOWNSHIP POLICE: Well, it's one of those actions where you see the act (INAUDIBLE). I grabbed my Mini Mag flashlight from my gun belt and used it to spear out the window. No different than any other officer from our department would have done. It's just part of the job.

(END VIDEO CLIP)

PHILLIPS: Well, he got the guy out moments before that car exploded in flames. Apparently, the driver passed out from a medical condition with the motor running and his foot hitting down on the gas pedal. That engine overheated, sparking the blaze.

Heavy hearts today as the Pittsburgh Police Department gets back to work after honoring three fallen officers. The men were ambushed and shot last weekend as they responded to a domestic dispute.

Thousands of police and law enforcement from across the country attended the memorial service to salute Officer Eric Kelly, age 41; Officer Paul Sciullo, age 37; and Officer Stephen Mayhle, age 29.

(VIDEO CLIP -- MEMORIAL SERVICE)

(COMMERCIAL BREAK)

PHILLIPS: Well, a question that might make you lose sleep tonight: Is your bank account safe? It's the FDIC's job to insure your money, but considering the string of big bank failures that we've had, can you count 100 percent on the government's help if your bank goes belly up?

Well, Gerri Willis is your personal finance editor.

Gerri, the FDIC chairwoman, Sheila Bair, she met with President Obama this morning for a status report. Of course, we tried to talk to her. She's pretty busy today. Why don't we talk about how her agency is doing and if she's doing anything different from previous. GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Well, yes. They're having their issues. But let's start with what the FDIC is. It stands for the Federal Deposit Insurance Corporation, created by Congress after the Great Depression to stabilize and instill confidence in the nation's financial system. They ensure deposits.

And here's what that means to you. If you put money into a bank account and that bank goes out of business, the FDIC stands behind it. It makes sure your money is still there.

And the FDIC maintains that, in its 75-year history, it has not lost a single penny of insured deposits.

Here's what you're insured up to: single accounts, $250,000; joint accounts, $250,000 per owner. IRAs, retirement accounts -- is this number starting to sound familiar -- $250,000 per owner.

You can also go to FDIC.gov. They have a great calculator that can help you figure out whether you are in the insured limits. But the bottom line is that it is their first job and really their most important job to make sure that depositors' moneys are safe.

PHILLIPS: OK. So let's talk about how, then, we can protect our bank accounts.

WILLIS: Well, first off, you know, go to FDIC Web site, FDIC.com (sic), and you can look for that seal in the bank's advertising, on the front window. And the Web site will tell you if your bank accounts are insured.

And if you're over the coverage limits I just described, for peace of mind, you can take that amount you're over the limit and put it into different banks.

But the bottom line here is look, Kyra, even if, you know, the FDIC runs out of insurance coverage, which it very well could -- that could happen -- they're still backed by the full faith and credit of the U.S. government. The government is behind this.

And so let me tell you. If you can't get satisfaction, you've got bigger problems than getting money out of the bank. So it's really not something to worry about at this time, simply because of the way it's structured -- Kyra.

PHILLIPS: Gerri Willis. Appreciate it.

WILLIS: My pleasure.

PHILLIPS: Well, we heard earlier from President Obama, who says that we're starting to see glimmers of hope in the economy. But just how hopeful are you? We've been taking your e-mails throughout the morning. Now we're delivering them straight to this man, Gene Sperling, senior adviser to Treasury Secretary Tim Geithner.

Gene, good to see you. It's been a very busy time for you.

GENE SPERLING, SENIOR ADVISER TO TIMOTHY GEITHNER: Yes, it has.

PHILLIPS: All right, let's get down to business if you don't mind. Lawrence here wants to know this from you, Gene: "What about Social Security? What is being done in the stimulus money to help and protect retired Americans?"

SPERLING: Well, the president has made very clear that, while we are going to have to do whatever we can to provide, you know, the bang to this economy, the spurt to get jobs and wages going again with this strong economic recovery plan, that we also at the same time are going to be taking a long run look at what we can do to strengthen the stability and security of our major retirement plans such as Social Security.

President, even in the middle of dealing with a financial crisis, held a bipartisan fiscal summit here. And one of the top issues, one that I chaired with the national economic adviser, Larry Summers, was on Social Security.

And I think that he believes that this is a great opportunity for us in these next couple years to put Social Security on a stronger path. I don't think that anybody is going to try to push for trying to privatize Social Security or have it engaged in the stock market after what we've done.

And so this could be a good opportunity for us to put it on a stronger, more certain path that protects Social Security as that core benefit, that core guarantee that every single American retiree can count on through thick and thin.

PHILLIPS: All right. And indeed we do all count on it.

Brooke asks this, Gene: "Cigarette taxes have gone up yet again. How do you justify one group of people bearing the tax burden? What will happen when more people stop smoking? Will you raise taxes even higher?"

SPERLING: Well, you know, both at the state level and also at the federal level, cigarette taxes have been tied to supporting health care, or health care for children.

And we just have to be honest with ourselves. Cigarette smoking bears a lot of costs throughout our society on our health-care system. And that's -- you know, a lot of legislators, both in the United States Congress and at state levels, have thought there was a sensible connection between having cigarette taxes that do prevent among young people the start of smoking that is unquestionably harmful for their health. Drawing that connection and taking those revenues to help make sure that we are dealing with our larger health-care problem of covering more people and bringing costs down.

So I think that's a connection that a lot of people understand.

PHILLIPS: Gene, Dasher (ph) is asking, "I'm a disabled man in Georgia. And my unemployment has run out. Is there anything in the stimulus plan that will help me?" SPERLING: We absolutely are extending unemployment in this -- in this stimulus plan. And I think that's very important. You see 8.5 percent unemployment. That's going to mean it's going to be tougher for people who are doing everything they can to find a new job and the person -- you know, I don't know this person's work history, but there's no doubt people are going to be struggling due to no fault of their own. Honest hard-working people that didn't have anything to do with the financial crisis over the last three years that helped contribute to this recession.

So this president just could not be more committed to standing by the people who are struggling in this economy, who played by the rules and are taking a bit of the hit for no fault of their own.

PHILLIPS: Gene, final question, if you don't mind. Jane asked this of you: "Does the administration ever intend to raise minimum wages to a level where there is economic growth for those who work for those wages?"

SPERLING: Well, we've had a recent minimum wage increase, and this president -- you know, just understand where this president started out. I mean, he started out in communities fighting for people, many of whom making the minimum wage.

There is not a 1 percent chance -- not a 1 percent chance that sitting in that Oval Office, he is going to forget the people who are on minimum wage, who are struggling to make sure their children are not raised in poverty and have a chance.

He's already put in this American Recovery Act a strong increase in the earned income tax credit, which together with increases in the minimum wage, have been absolutely critical for taking millions of hard-working, hard-pressed American families and making sure they're still able to raise their children with dignity.

PHILLIPS: Gene Sperling, appreciate your time today. Hope you'll come back.

SPERLING: Sure thing. Thanks for having us.

PHILLIPS: You bet.

Well, these people aren't city workers. They're not even getting paid. But they're taking matters into their own hands. The city might not like them, but I'm betting you will.

(COMMERCIAL BREAK)

PHILLIPS: Hello? Anybody home? You won't get an answer at millions of places right now as the nation deals with an unprecedented glut of vacant homes. "USA Today" says that one in nine are sitting empty across America. There are some 14 million empty houses, condos and apartments.

The reason? Recession, delayed marriage and a slowdown of immigration have all cut into the demand. There is a bright side, though. Dropping prices are drawing first-time buyers who couldn't afford a home before. Plus, the availability could push down the cost of renting.

Well, mortgage rates are also plunging to near record lows, and that has President Obama urging people to refinance their home loans. Even was talking about that today. But how do you find out if you qualify for refinancing or some other home loan tweaks?

Well, here's one tool that we're going to show you right now. It's the government Web site MakingHomeAffordable.gov. And Robert, I'm going to have you come up here so folks can see. This is actually the front page.

And if you click on this, you'll be asked -- this is basically how you start. You can go to home affordable refinancing or home affordable modification.

Now, home affordable refinancing is for borrowers who have loans held by Fannie Mae or Freddie Mac. So if you click on that, if that concerns you, then there's all these questions that you have to answer to see if, indeed -- what it's going to take for you to refinance. It's pretty simple. And once you click onto the front.

Then the other part here, if you want to take a look at the home affordable modifications right here, you click onto this, as well. And this is the option for you with a mortgage payment. If you have a mortgage payment that's more than 31 percent of your income, this is where you're going to want to go to see about the home loan modification.

It's the same type of thing, you know. If you scroll down it will ask you all these various questions. You submit it, and it takes you through the process. So it's pretty easy.

Once again, MakingHomeAffordable.gov. Just another tool for all of you to be able to use.

All right. Another interesting story as we're talking about refinancing homes, and if you're able to do that, I found this in the "Miami Herald" this morning. And it caught my attention. And it got us all talking, actually.

Developers planning their first solar city. This is what it's supposed to look like, 19,500 homes, I'm told. It's going to be in southwest Florida. The new city will be powered by a $300 million 75- megawatt solar plant that Florida Power and Light plans to build in Charlotte County.

Now, the company plans to begin building those homes, almost 20,000 of them on a large tract of land that they're calling the Babcock Ranch. And they're saying by 2011.

Now, this is just east of Fort Myers and Punta Gorda, in case you don't know the area. Now, the developer, Sid Tiffany (ph) said, "Look, this is a long-term solution," he says, "for the economy and the environment." And he just feels it's the right thing to do.

Interesting story.

All right. It happened to all of us. We're driving along, then suddenly, thunk. A pothole. And then, thunk again. Another pothole. Well, you know the drill. We've all experienced it. And a lot of Chicago residents, well, they got tired of waiting for the city to come fix their streets. By the way, does that ever happen? So they picked up their own shovels.

And here's the story now from Teresa Gutierrez from our affiliate, WLS.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: You can't walk out there. You walking out there in the street at night, you can fall down and break your arm.

UNIDENTIFIED MALE: The city hasn't done anything about the potholes on this block. Members of the community are taking matters into their own hands, and so they're doing it themselves.

THERESA GUTIERREZ, WLS-TV CORRESPONDENT (voice-over): Angry residents of the South Austin Coalition Community Council, who live in the 4800 block of West Van Buren, have decided to take the pothole situation into their own hands and have started repairing potholes themselves. The coalition is supplying the black top to fill them, and the residents are doing the work.

UNIDENTIFIED MALE: Kind of proud of these people. They're trying to get the community better, the streets better. Because it seems like the city is not doing anything in these types of neighborhoods.

UNIDENTIFIED MALE: In the last two months on the 4800 block of West Van Buren, we've received just one call about potholes.

UNIDENTIFIED MALE: They're inundated with potholes. Very dangerous potholes.

GUTIERREZ: CDOT does not recommended residents fill the potholes for a number of reasons.

UNIDENTIFIED MALE: First and foremost is safety. We don't want people out on the street, among active traffic. Secondly, we don't know what type of material or processes they're using.

GUTIERREZ: The big question is, who is responsible legally if someone gets hurt or destroys their car on a pothole repaired by a resident.

UNIDENTIFIED MALE: That's a very good question and one I don't have an answer to. And that's the reason why infrastructure repairs are under the purview of and the responsibility of the city.

(on camera): Are you willing to take responsibility, though? UNIDENTIFIED MALE: Willing to take responsibility. That's a good question, you know? One I have to look at in terms of our legal department.

GUTIERREZ: Potholes can be found across the city. We drove to other blocks in the Austin community and found potholes. We then went to the North Side and found too many to count. Avoiding them can take work, and they can destroy your car.

UNIDENTIFIED MALE: The city has not received state funding for arterial street resurfacing since 2006. Typically, we would do about 30, 40 miles of street resurfacing each year. We haven't been able to do that for the last three years. And that's really starting to take its toll.

(END VIDEOTAPE)

PHILLIPS: All right. I cannot count the number of tires that I've blown out in Atlanta potholes. So would someone give those Chicago pothole fixers a job, please? Send them to pothole-filled places all over America.

Come on, people. Are you with me? I thought so. There's got to be one of you frustrated by that.

All right. Speaking of taking to the streets or maybe taking to the field. No, taking to the street on the way to the field. Live pictures now from WISN. Folks, I remember when this video came in live about eight years ago. And I had absolutely no idea what was going on. But actually, this is very serious in Milwaukee, Wisconsin.

This is opening day at Miller Park. The Brewers are playing the Cubs. And this is the sausage run. It's a very big deal here. I don't want you to laugh. And basically, what I'm being told, that the Polish sausage has already handed off the baton to the bratwurst. Do we know, Kelly, if this is the Italian sausage?

All right. Now the Italian sausage has taken the lead. Now we're just waiting to see if it passes off to the hot dog or the chorizo. We can just imagine all of the dogs here at opening day have very tight buns.

We'll be right back.

(COMMERCIAL BREAK)

PHILLIPS: Killer tornadoes and wildfires. Several states now feeling the impact as the violent weather is far from over. In Mena, Arkansas, for example, heavy damage from a nighttime twister. At least three people have lost their lives in that small town. And then in Oklahoma and Texas, wildfires have damaged or destroyed hundreds of homes and businesses, and at least two people have died there.

Reynolds Wolf is tracking the powerful storm system for us here. And the video just keeps coming in, the numbers, and also wondering if there's any, you know, breath here for any of the people there that things will get better.

REYNOLDS WOLF, CNN METEOROLOGIST: You know, they should actually get a break in places like Mena. But the problem is, once this storm system moves across down to the Atlantic, we're going to see another system build up back toward Texas. As we get into Sunday, places like northern Arkansas could be hit once again by strong storms. So, they get a little bit of a respite, but they're not out of the woods just yet.

And as we speak, we already have some tornadoes that have been forming across the landscape. Let's go right in. I'm going to zoom in on a couple of key locations. Kyra, you can see the setup right now. We've got this intense line of storms driving right on through. You see Nashville. Let's zoom in a bit more if we can. You'll see two lines, one south of the city, the other one forming due west.

And if we can, let's take the live image that we have for you out of Nashville that shows the view going towards the west. You notice the cloud cover. Do we have that shot of Nashville? The towercam shows that the rain continues to come down. They're getting a little bit of a break in the downtown area of Nashville by Music Row.

But what they can anticipate is a second round of strong storms to come on through. You're going to have some rough wind with that, some heavy rainfall, some damaging hail, possibly some tornadoes mixed in with this.

Let's go back if we can quickly to the weather computer. And we're going to follow this trail of storms back through parts of Tennessee and then into northern Mississippi. You've got Shiloh National Military Park right here in Pickwick Dam. Then you have Tupelo, and then we have a couple of cells that have been forming here. One has been at least seen by some trained spotters, law enforcement, as a tornado that dropped from one of the clouds.

This again several -- one of several tornado warnings that we have in effect this time. And what we're going to be seeing is the potential of more of these storms to develop as we make our way through late afternoon hours into tomorrow. Because as I mentioned, this low is going to continue to track towards the east as it does, so it's going to interact with that Gulf moisture.

But then as we fast forward from today and into tomorrow's forecast, notice that other low coming out of the four corners. Could create more storms for Texas. As we get into Sunday possibly storms back into portions of Arkansas. So, that's a wrap on your weather. Certainly some rough times and could be some rough times, to say the least, through the weekend. Let's send it back to you, Kyra.

PHILLIPS: All right, thanks, Reynolds. Talk about rough times. Even as they say goodbye to their loved ones, Italian earthquake survivors can find no peace. Aftershocks hitting during today's mass state funeral even. It was held out in the open air because of the risk of falling debris.

At least 287 people were killed in Monday's quake, which hit just before dawn as everybody was still sleeping. Speaking before rows of coffins, one of them, a tiny white box for a baby. L'Aquila's cardinal reminded mourners that everything can stop in a second. Everything finishes. All that remains is love.

(COMMERCIAL BREAK)

PHILLIPS: Well, pistachios, peanuts, recent salmonella problems highlight holes in the food safety net. The Centers for Disease Control says that salmonella prevention is lagging behind that of other types of food poisoning. In fact, one CDC official says that progress on the salmonella front has pretty much stopped. The agency plans to beef up the division in charge of food poisoning incidents.

And it looks like compassion was the deciding factor in the FDA's decision to leave a form of liquid morphine on the market. That's a reversal from last week, when the FDA ordered the drug company to stop making it. Officials changed their minds after hospital and hospice workers said taking the morphine away could mean a harder time for dying patients, their families and their caregivers. The drug is still not FDA-approved.

So, did you see Michael J. Fox on "LARRY KING LIVE"? Well, Larry was talking about him and talking about his Parkinson's disease, and how it's turned him into an incurable optimist.

(BEGIN VIDEO CLIP)

LARRY KING, HOST, CNN'S "LARRY KING LIVE": When you open your eyes in the morning, you know this is going to be coming...

MICHAEL J. FOX, ACTOR: Yes, it's...

KING: ... plus other things.

FOX: Yes, it's a series of, you know, I kind of put myself through a routine of getting up. Also, my feet cramp in the morning, so I put on hard shoes and kind of make my way, tiptoe out of the bedroom so I don't clump around.

KING: But doesn't that make you say, I think I want to stay in bed?

FOX: No, no, absolutely not. It's actually the opposite. It shakes me out of bed. And once I'm out of bed, I'm happy to be out of bed. And I kind of go on to describe further, you know, getting ready and my ablutions and my routines and my rituals, and then going out to the hallway to go to the kitchen, where Tracy's usually got the kids, getting the kids ready for school. And there's a mirror in my hallway, and as I pass that mirror, I look at it and say, what are you smiling at? And I realize that it just gets better from here.

(END VIDEO CLIP)

PHILLIPS: Well, Fox's new book puts his new outlook down on paper. "Always Looking Up: The Adventures of an Incurable Optimist." It was ranked 18th today on Amazon's list of top sellers. Here's another recession victim, Shriners Hospitals. Six of their 22 facilities in the U.S., Canada and Mexico might have to be shut down. Three big reasons for this: Fewer donations, increasing costs and the fact that the group is eating into the endowment to cover the difference. Shriners have been caring for people for free since the Great Depression.

A soap business falls on hard times, but it manages to come out clean. One company's comeback is a lesson for all of us. How to survive and thrive in a recession.

(COMMERCIAL BREAK)

PHILLIPS: A serious sign of the times at the struggling "Los Angeles Times." On the newspaper's front page today, an ad laid out very much like a news story tells readers about a rookie cop's first day on the job, a cop who's actually a character on the NBC drama "Southland." It was marked as an ad and done in a different font style, but still, more than 100 "Times" employees reportedly signed a protest petition. Would be interesting to see if this continues.

Well, 10,000 people, 1,500 jobs. You don't have to be a math whiz to figure out those odds stink, but so does being unemployed. A New Hampshire job fair just overwhelmed by applicants yesterday. Traffic was backed up for miles as people tried to get in there. Just two hours in, organizers had to close the doors.

(BEGIN VIDEO CLIP)

CARA LINDSAY, UNEMPLOYED JOB SEEKER: I'm actually shocked at the turnout. It's a little depressing to know that these many people are out of work. It's a little stressful, you know, everyone looking for something, and I don't think there's enough to go around.

(END VIDEO CLIP)

PHILLIPS: Well, the state's unemployment is way below the national rate, but New Hampshire's neighbors aren't doing as well. Lots of people crossing state lines to apply for those jobs.

Well, you probably won't get much sympathy from your unemployed friends, but that job promotion you just got? Guess what? It could make you sick. According to a British study, people who have been promoted suffer more mental stress and strain, about 10 percent more on average. And of course, stress raises your risk of illness, everything from colds to cancer. Compounding all that, well, the study found post-promotion, we don't take time to go to the doctor, 20 percent fewer visits.

When the bottom falls out of your business, how do you land on your feet? Well, we met an Atlanta-area businesswoman who not only found solid ground, she's also climbing her way back to the top. It's a lesson for business owners everywhere, but as our Brooke Baldwin finds out, it's not an easy one to learn.

(BEGIN VIDEOTAPE) DAWN DALLAIRE, CEO, CLEARLY FUN SOAP, INC.: We began with a goldfish in a bag. And this is the original bar. It's still our most popular to this day.

BROOKE BALDWIN, CNN CORRESPONDENT (voice-over): Dawn Dallaire's story starts with a goldfish, a bag and a bright idea to sell novelty soaps. It's an idea this 47-year-old entrepreneur has been poring over since she started this small business in her garage six years ago. Early on, Dawn got a phone call that changed everything: a massive order from a major retailer.

DALLAIRE: All of a sudden now, we have tractor-trailers pulling in our neighborhood, and so that became an issue. So, then we took the leap and got our first building.

BALDWIN: By 2008, Dawn was raking in revenue of more than a million dollars a year. Somehow this single mother managed a staff of two dozen, made guest appearances on network TV, and local newspapers headlined her success as Georgia's small businessperson of the year.

And then the recession hit. One of her biggest clients, Linens- n-Things, went bankrupt.

(on camera): In two weeks' time, you're submitting a manuscript to your book, you're Georgia's small businessperson of the year, and then, wham! The bottom drops out.

DALLAIRE: Yes, exactly. Exactly. And it was almost -- it was like, if I could do the book over, it would be twice this thick because of the lessons that I've learned over this last year.

BALDWIN (voice-over): They're lessons this award-winning entrepreneur feels compelled to share. Lesson number one, keep your business lean and mean. Dawn cut the employees who weren't making the grade and kept the most passionate people. She also chopped her salary in half.

(on camera): There was a chunk of time where you weren't getting paid.

DALLAIRE: I didn't get paid for seven -- I added it up last night. I didn't get paid for seven months.

BALDWIN: Seven months.

DALLAIRE: And at that time, I was the sole breadwinner. It was the hardest thing that I've ever done.

BALDWIN (voice-over): Two, keep your inventory in check.

DALLAIRE: We won't order the inventory on speculation. We will wait until we have a purchase order in hand.

BALDWIN: Three, maximize your selling potential online. Four, don't ignore smaller orders. DALLAIRE: (AUDIO GAP) are our tried and true, and they're your backbone of your business. They keep you going between the other orders.

BALDWIN: Five, hire someone, as Dawn likes to say, who's smarter than you. She hired a CFO to handle all the business's financial minutiae so Dawn can focus on her passion.

(on camera): What's your favorite part, I mean...

DALLAIRE: Designing.

BALDWIN: Designing.

DALLAIRE: That's my favorite part. To have something come out of your head and then actually see it on the shelf in a store is just awesome.

BALDWIN (voice-over): These days, Dawn's novelty soap is selling in 4,000 stores nationwide.

(voice-over): You weren't bailed out. You bailed yourself out.

DALLAIRE: Exactly. Exactly. Exactly. And I've learned. I mean, you know, like I said, it didn't come with an owner's manual. And I've learned the hard way, but I know it. I love it. And we're turning things around here.

(END VIDEOTAPE)

PHILLIPS: Wow. So, is Dawn out of the red?

BALDWIN: She isn't quite out of the red just yet. She was joking with me that when she's calling the bank these days for a loan that they're just not answering. No, honestly, she said she's not out of the red just yet. She hopes to be by fourth quarter of this year, Christmas, huge business for her when it comes to all of her soaps. Hopefully by the end of the year, she will be in the black.

PHILLIPS: I always wondered who made those -- I see them everywhere, practically.

BALDWIN: Yes, take a look. We have Robert here with the camera. Maybe we can get some -- there we go -- closer shots. This is the goldfish in the bag. That was her very first soap. And then I even -- she was so kind and creative and made us a little CNN -- here we go -- "CNN Rocks."

PHILLIPS: You've got to love that.

BALDWIN: You got that. Yes. So, Dawn to go.

PHILLIPS: We need to get those to every -- yes, but come on. Show the Brooke one. That's pretty cute.

BALDWIN: OK, it's kind of cute. She knew I was coming. PHILLIPS: She gave a personalized Brooke.

BALDWIN: There's a little CNN teleprompter with my name on it. Thank you, Dawn. Very nice.

PHILLIPS: Cute stuff. All right, well, Obama's stimulus money isn't going help small businesses like Dawn across the country?

BALDWIN: It is. Thank goodness for them. I think overall, when you think about the stimulus, it's helping, obviously, stimulate the economy, thus helping entrepreneurs specifically.

But other examples. The stimulus plan is expected to make affordable credit available to small businesses just like Dawn's, reduce fees on small business loans to zero and help existing struggling businesses with some kind of financial, financing program, get everyone back on track.

PHILLIPS: Got to think of something and start our own business. I'm telling you.

BALDWIN: And get creative. Be passionate. You know?

PHILLIPS: That's it. And she is. Thanks, Brooke.

BALDWIN: You're welcome.

PHILLIPS: We're getting some developing news in right now about Henry Ford College in Dearborn, Michigan. We had reports that it was on lockdown. Now we are being told two people are dead after, according to school officials there, there were reports of shots being fired on campus.

And then there were reports the alleged gunman was in police custody. Now we're getting reports that two people are dead. We can't seem to confirm whether the gunman is one of the individuals that has been killed in this shooting. We're working details right now on Henry Ford College in Dearborn, Michigan.

We're also pushing forward as Virginia Tech is pushing forward. Just a few minutes from now, the university, scarred by a tragic shooting, takes a big step in its long healing process.

And good Friday was never so Twittery. We're going to show you how you can observe the Passion, 140 characters at a time.

And check out that handshake. That's right, a new chapter for this wounded soldier. He's dedicated his life and given his limb for his country, but only today can he officially call himself an American.

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(BEGIN VIDEO CLIP)

SGT. JUAN LUIS ALCIVAR (ph): ... that I will take this obligation freely...

JANET NAPOLITANO, SECRETARY, DEPT. OF HOMELAND SECURITY: ... without any mental reservation...

ALCIVAR: ... without any mental reservation...

NAPOLITANO: ... or purpose or evasion...

ALCIVAR: ... or purpose or evasion...

NAPOLITANO: ... so help me God.

ALCIVAR: ... so help me God.

NAPOLITANO: Congratulations.

(APPLAUSE)

(END VIDEO CLIP)

PHILLIPS: Well, that was Sgt. Juan Luis Alcivar. His fellow soldiers, well, they call him a comrade, a buddy, stars and stripes kind of guy. But only today can they call him an American, officially anyway, even though he's been here 20 of his 25 years, served his country in Iraq and lost his femur to a sniper just outside Baghdad.

Only today does this Dominican-born soldier have the rank of citizen. In fact, until today, he was one of some 40,000 noncitizens serving in the U.S. military. He's with us now from the scene of his citizenship, Walter Reed Army Medical Center. Great to see you, Juan.

ALCIVAR: How you doing today, ma'am?

PHILLIPS: Well, it was funny, we were talking about if we were saying Alcivar correctly. I understand all your buddies call you air- conditioner, because that was easier to say than Alcivar?

ALCIVAR: Yes...

PHILLIPS: Is that true?

ALCIVAR: ... yes it was. It's true. I got called Air Conditioner.

PHILLIPS: But Alcivar doesn't mean air conditioner. So where did that come from?

ALCIVAR: My first sergeant at the time, First Sergeant Lynch, he couldn't pronounce my last name, so he just yelled out, get Air Conditioner in here. And they brought me in. And everybody just started calling me air conditioner. So, I told everybody, just call me A.C. for short.

PHILLIPS: There you go. Well, you could be a football player then with the Refrigerator. All right, let's -- seriously, though, this was such a big moment for you and we were looking at the actual taking of the oath ceremony. And there was a moment with you and Janet Napolitano, the head of homeland security, and I could hear her whispering to you in her mike, "That was a heck of a long oath, wasn't it?" Did you struggle through that?

ALCIVAR: Yes. Yes, I did. My accent still sneaks in here and there, but we beared through it and just moved on.

PHILLIPS: Well, it must have been an amazing moment. What did it feel like when it finally happened, Juan, after 20 years?

ALCIVAR: To me, it felt great. But either way, I just -- I don't know, I just had a very, very patriotic moment right there. To actually now actually say that I'm an American. But like all my buddies kept telling me and everything, they don't care. I was still an American in their eyes. I went out there and I served with my country. So, they still saw me as an American even if I got it or not.

PHILLIPS: Let me tell you, Juan, I didn't realize how many immigrants serve in the U.S. military, and that you don't even have to be a U.S. citizen. I don't think a lot of people realize that. You know, as someone that has not been an American citizen until now, yet you're considered an American soldier, you're fighting for this country, you know, a lot of us here in America take things for granted.

Did you see things differently as you were participating in the wars? Did you see things differently as you were fighting for this country versus fighting for where you were born, the Dominican Republic?

ALCIVAR: To me, I've been -- like you said, I've been here for 20 years. I felt as much as an American as a person who was born here. I was born in Dominican Republic, and I'm proud of that, and I love it. And I was raised here, in the United States, in New York.

And when I go out there, and I'm serving with a guy who's from Michigan and another guy who's from Oklahoma, and I'm from the Dominican Republic, you know, to me, it's all the same. And to them, it was all the same, you know. And it's true.

A lot of people -- because a lot of people asked me, they're like, you can join the military without being a U.S. citizen? I'm like, yes, I did. I joined. I'm not a U.S. citizen, but I joined.

PHILLIPS: And why did you?

ALCIVAR: You know, and I'm out there serving my country.

PHILLIPS: Yes. And why did you want to join the Army?

ALCIVAR: Like I said, I've been here for 20 years. I was going to college. I was working, like, about -- I was working about, what was it, four jobs. I was working four jobs going to college and trying to live on my own, and I was just -- and every time I put on the news or anything, I kept seeing soldiers doing their part and going out there and, you know, some people have the urge that, you know, they can send cards and stuff like that. For some reason, I had the urge to just join up, sign on as a 19 Delta cavalry scout and go out there and fight.

PHILLIPS: Wow.

ALCIVAR: I wouldn't do it even -- even if you told me today, if you told me back then that I was going to get shot and whatever, I would still do the same job. To me, it didn't matter.

PHILLIPS: It doesn't surprise me. Your heart's in it. And we wish you congratulations, Sergeant Juan Luis Alcivar, also known as Air Conditioner, aka A.C. Feliciades.

ALCIVAR: Thank you very much.

PHILLIPS: All right, Juan. Well, tragedy for...

ALCIVAR: (INAUDIBLE)

PHILLIPS: Thank you.