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Mexican Drug Cartels Recruiting U.S. Teens as Smugglers; National Day of Silence; Coffee Grounds and Cocoa Beans as Biodiesel Fuel?; Get Organized Now to Ease Tax Burden Later; Rhode Island Murder Might be Linked to Craigslist Killer; "Britain's Got Talent" Singer Promises Fame Won't Change Her; Economy Prompts Less Household Spending, More Sleep Loss

Aired April 17, 2009 - 09:59   ET

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

HEIDI COLLINS, CNN ANCHOR: Checking stories happening right now. Memos released by the Obama administration are shedding light on the treatment of terrorists during the Bush era. One memo said that without the intent to cause severe pain, interrogation tactics like waterboarding did not violate laws against torture.

An image of the beginning of the end of NASA's shuttle program as the last time two shuttles are scheduled to be on the launch pads at the same time. Atlantis has a date with the Hubble Space Telescope next month. NASA says the Shuttle Endeavour is standing by in the unlikely event a rescue mission is needed.

A man accused of stalking supermodel Tyra Banks goes on trial four hours from now. The suspect has rejected non-jail, plea deals. Banks is expected to testify at that trail.

Your money in the headlines and on the move. Here's a quick walk through of what we're following for you. Brand new numbers on consumer sentiment. How we spend may help decide how long the recession lasts. Also this morning, two troubled giants reveal their most recent earnings. It's bad news with a good kind of twist. And we're watching how investors react on Wall Street, will the business week end on a positive?

There's a lot to cover, we want to begin with the earnings reports. Two troubled giants take baby steps in the right direction.

CNN's Susan Lisovicz joining us now from the New York Stock Exchange. Hi there, Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: Hi, Heidi.

And we just got the consumer sentiment I should mention, it was better than expected. A rise was expected, but it beat that rise and that's also good. And perhaps it's because investing sentiment has improved markedly.

But investors were worried, particularly about Citigroup. We can tell you definitively that it's Citigroup's best quarter since the middle of 2007. It made money, more than $1.5 billion in the first three months of the year. Executives were saying that it made money in January and February. They were telling the street that about a month ago or so. But there's an asterisk to it because if you take out accounting changes, there was still a loss per share and this banking giant has cut 13,000 jobs so far this year.

GE is another heavyweight that we have to tell you about. This is a company that makes everything from light bulbs to motion pictures. And so, because of that, it is often seen as a bellwether for the U.S. economy. Its profits also beat estimates. It earned about $3 billion for the quarter. It does have wide exposure to a financial unit. And Jeffrey Immelt said its stress-test results show it won't need to raise more capital.

Despite that, both Citigroup and GE are under a little bit of pressure. And we're not seeing much movement overall with the three major averages. But I am going to repeat this, Heidi. It looks like at this point, we could have six straight weeks of gains for the three major averages.

COLLINS: Wow, you're going out on a limb there.

LISOVICZ: Well, at this point. I think we should underline that.

COLLINS: All right. Susan, we sure do appreciate that.

We'll of course stay on top of those numbers. You can see on the bottom of your screen, the Dow Jones industrial average up about nine points right now.

President Obama on the next leg of his Latin America trip. This hour, he travels from Mexico City to the Caribbean nation of Trinidad and Tobago. There he will take part in the Summit of the Americas with other leaders of the western hemisphere.

But one nation that won't be represented may capture much of the spotlight. There's talk of a thaw in the Cold War-standoff between the U.S. and Cuba. That's because Cuban President, Raul Castro, says he's willing to talk to the Obama administration. And he says all grievances are on the table, even matters that Cuba have long insisted were no one else's business. That list includes human rights, political prisoners, even freedom of the press.

Bridge-building also the goal of President Obama's just-completed visit to Mexico. The issue -- demanding the most attention from him and his Mexican counterpart, the escalating drug wars that are spilling blood on both sides of the border.

So what now? CNN's Dan Lothian takes a look.

(BEGIN VIDEOTAPE)

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT (voice-over): President Obama says it was a wide-ranging face-to-face meeting with President Calderon. Chewing over common challenges and plotting a strategy to tackle the biggest one -- the violent drug war.

OBAMA: We are absolutely committed to working in a partnership with Mexico to make sure that we are dealing with this the scourge on both sides of the border.

LOTHIAN: An estimated 6,000 Mexicans were killed here last year in the violence and the bloodshed continues. Fuelled in part by guns and cash flowing from the U.S.

MIKE HAMMER, SPOKESMAN, NATIONAL SECURITY COUNCIL: The United States has a responsibility, whether it's on the demand side, whether it's on the arms, the trafficking into Mexico. Because it shows that the Mexican government and Mexican people that we're willing to do our part.

LOTHIAN: In an opinion piece that ran in several newspapers across the country and Latin America, Mr. Obama again suggested that the U.S. is partly to blame for the problem. Writing quote, "By reducing demand for drugs and curtailing the illegal flow of weapons and bulk cash south across the border, we can advance security in the United States and beyond." But the administration seems unwilling to step into a political minefield by pushing for stiffer gun laws, even though some Mexican officials say the lifting of a U.S. ban on military assault style weapons has made things worse. Instead the Obama administration has stepped up efforts to fight against the cartels by appointing a border czar and using an old law to target specific cartels and the cash they might be hiding in the U.S.

OBAMA: The kingpin law allows us to go after the finances, the financial underpinnings of the cartels in a much more aggressive and much more effective way.

LOTHIAN (on camera): While President Obama said he would not push to have the automatic weapons ban reinstated, he said his administration would step up enforcement of existing gun laws to make sure those weapons stop flowing across the border. Dan Lothian, CNN, Mexico City.

(END OF VIDEOTAPE)

COLLINS: Mexican cartels are so bold that they're recruiting American teens to run drugs. We'll go inside this dangerous world.

(WEATHER REPORT)

COLLINS: The motive behind a deadly hospital shooting is still a mystery. It happened yesterday at Memorial Medical Center in Long Beach, California. Witnesses say Mario Ramirez killed two of his co- workers, then turned the gun on himself. All three men worked in the hospital's outpatient pharmacy.

(BEGIN VIDEO CLIP)

CHRIS WOLFE, WITNESS: I saw the gentleman standing over the person that he murdered. And I just saw the gentleman take his own life.

STACIE CROMPTON-HIME, HOSPITAL SPOKESWOMAN: The safety of our patients, our visitors and our employees is of utmost importance to us. (END OF VIDEO CLIP)

COLLINS: A neighbor had described Ramirez as a quiet and polite family man.

A Marine accused of killing a pregnant colleague will soon be in the hands of U.S. authorities. Marine Corporal Caesar Laurean is being extradited to the U.S. from Mexico at this hour. He's charged with killing Lance Corporal Maria Lauterbach in 2007. Lauterbach's burned body was found buried in Laurean's backyard near Camp Jejune, North Carolina where she and Laurean both worked. She was eight months pregnant at the time. Laurean disappeared and was arrested in Mexico last year. Lauterbach's mother says she's relieved Laurean is one step closer to standing trial.

(BEGIN VIDEO CLIP)

MARY LAUTERBACH, MOTHER: It's very good to know, because there are a lot of unresolved questions. And it gives me much more hope that maybe some day we really will have answers to some of these things and what actually happened.

(END OF VIDEO CLIP)

COLLINS: Laurean will be processed in Texas where he can either waive or fight extradition to North Carolina.

If your teenager is not talking today, don't be alarmed, it's the National Day of Silence and a student leader will be breaking his silence to tell us all about it.

(COMMERCIAL BREAK)

COLLINS: Well, today you won't hear a peep out of thousands of middle school, high school and college students, unless they are asked a direct question. They're taking part in the 13th Annual National Day of Silence. Their aim, to bring attention to the name calling and harassment against students who are or perceived to be lesbian, gay, bisexual or transgender.

In the NEWSROOM with us today is Cory Phelps, he is national student leader of the day of silence.

Corey it's a pleasure to have you with us. Thank you very much.

CORY PHELPS, NATIONAL STUDENT LEADER, DAY OF SILENCE: Pleasure to be here.

COLLINS: Let me just ask you first, a little bit more about what the point for today is and how it all came about.

PHELPS: Well, in 1996, you know, a university of students at Virginia were made to, you know, it was their assignment to come up with a nonviolence day of action. And they did this. And it eventually grew and grew until it took over. And what today is really about is it all comes down to bullying and harassment and name-calling. Students go to school every day and they're bullied and harassed and we really want to be sure that by taking this vow of silence that we are bringing attention to anti- bullying, name calling and things, and trying to end it.

COLLINS: So it's been around for a while, this day. How and why did you particularly get involved?

PHELPS: The reason why is because my freshman year I had two students threaten to kill me. And that right there really, you know, gave me the fire you know to get up and do something about it. And I looked around...

COLLINS: That must have been really hard, really scary.

PHELPS: It was, I mean the school did nothing and it was just you know, that event -- it scared me to death. I thought, there has to be something that I can do. I looked around and looked around and I found the gay, lesbian and straight education network and I saw that they were having an upcoming day of silence. And I worked with our school's gay-straight alliance and I got involved with the school and that right there is really just how it all began.

COLLINS: I'm looking at some pictures of you throughout all of these different events and so forth. Do you think this is an effective way to call attention to the issue? When you look back at all these years that it has been going on, maybe even prior to your involvement, what has the success been?

PHELPS: Well from coast to coast, you see media coverage all over. And in schools you know, you'll see students start to talk about it you'll see educators start talking about it. And you'll see a lot of dialogue between people about what's happening, what this day is about. And I think it's extremely successful. We see an increase in GSA members afterwards. And we see a more, not hostile environment, but a more accepting environment in a way.

COLLINS: So people are talking to people who are different from one another, seem to be talking more.

PHELPS: Yes.

COLLINS: Just real quickly I wanted to point out these hall passes that he has in his hands. This is to explain to the teachers. I'm not quite sure if you can read it or not but it says, "Please understand my reasons for not speaking today. I'm participating in the day of silence."

And then it talks about the national abuse movement so the teachers don't get mad at you for not talking, right?

PHELPS: Yes.

COLLINS: Well, Cory Phelps, we sure do appreciate your time today, thanks. PHELPS: Thank you.

COLLINS: Public schools in Tennessee are being accused of blocking students' access to lesbian, gay and bisexual websites on school computers and the ACLU is threatening to sue if it doesn't stop.

Melissa Henry of our affiliate WKRN has more.

(BEGIN VIDEOTAPE)

HEDY WEINBERG, ACLU OF TENNESSEE: The schools are allowing one side of an argument, one side of an issue to be heard and not the other side. If you can't have a filter set up by the government where one side of an issue is available and the other side is struck, is blocked.

MELISSA HENRY, WKRN CORRESPONDENT: The issue in this case is homosexuality. The ACLU says Metro and other school districts use filtering software that automatically blocks educational websites relating to homosexuality, but allows students to see websites that oppose it.

ERIC AUSTIN, STUDENT: If a gay student wanted to research something about how he can get information about organizations that can help him, he wouldn't be able to. That would be like an African- American student not being able to get to the NAACP's website.

HENRY: The ACLU is asking Metro and Knox counties to unblock the websites by the beginning of the next school year. They want a response to their request by the end of this month. Otherwise, they say they will sue, as a last resort. Metro officials say they haven't seen the letter yet.

(END OF VIDEOTAPE)

COLLINS: According to the ACLU, as many as 80 percent of public school districts in Tennessee may be restricting access to the non pornographic sites, some offering educational and political information.

Finding affordable health insurance without a job. You asked us how, and we have the answer.

(COMMERCIAL BREAK)

COLLINS: Well it's "Empower Me Friday" and that is when we answer your questions about how to get the most out of your health care. CNN senior medical correspondent Elizabeth Cohen joining us.

Elizabeth, today we are actually talking about where to find affordable health insurance, even if you have lost your job.

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: That's right. A huge problem as we know, millions of people are losing their jobs right now. And on empower me Friday, we solve people's problems. Remember we got a prescription drug bill down from $400 a month to about $50 a month. So we're trying to help this couple now. So go ahead and why don't you read it.

COLLINS: There's no telling what you can do.

COHEN: There is no telling what we can do if we put our minds to it.

COLLINS: I already fill empowered. Here's the first one, this is coming to us from Chris. It says this, "We lost our business and we've had to recently let go of our health insurance. My husband and I are nearing 50 years old with no major health issues, where can we get some or any health insurance coverage?"

COHEN: Well, Chris is now joined, Chris and her husband have now joined the millions of Americans who don't have health insurance. So what we did is with the help of ehealthinsurance.com, is we shopped around and we actually found a policy that's pretty good, it covers quite a bit. It's not free, but it's as horrendously expensive as you might think.

So take a look, for $377 a month, both Chris and her husband can get insurance that will do $30.00 office visits from the get-go, from the very beginning; $15.00 for prescription drugs, that's not bad at all. For procedures, like if they had to go to the hospital to get an operation or something, there would be a $5,000 deductible.

So for $377 a month for two people, 50 years old. That's actually I think more reasonable than a lot of people might think.

COLLINS: Yeah more reasonable but what if they can't even afford that? It's $377 every month they just lost their business.

COHEN: That's right. When we went shopping around, we said, all right. Get us a rock-bottom price. What we were told is that for $270 a month...

COLLINS: This is the absolute lowest?

COHEN: That was the lowest that we found for two 50-year-olds in the state of California, $270 a month will get them catastrophic insurance. So God forbid something big and bad happens, at least they're covered for a catastrophic horrible event.

COLLINS: All right now, catastrophic insurance, it doesn't usually cover regular, routine visits, I mean by the name, it's for catastrophes only. Those are expensive too, how would they cover those?

COHEN: That's right, just a doctor's office can set you back. And so what we did is we looked around for places that can give free or low-cost help to people who need doctor office visits and prescriptions.

So take a look at this, if you go to needymeds.com it will connect you with all sorts of programs that will give you free and low-cost prescription medications, there are lots of programs out there for this. People don't have to suffer. Also, here's a tip -- negotiate these with your doctor. I think that we don't think about doing that.

COLLINS: Right there in the office?

COHEN: Right there in the office. I know a woman who lost her insurance because her husband lost his job, she said to the pediatrician, I want to keep bringing my daughters here, but we don't have insurance. So the pediatrician said, $40.00 a visit.

COLLINS: They are private practices so I guess it's not that crazy.

COHEN: They don't want to lose her as a customer, because her husband will find another job. So they don't want to lose her as a customer and she negotiated a pretty reasonable fee. It's possible.

COLLINS: All right, well very good, some good advice.

COHEN: You know what, I want to give more good advice. Next week, on empower me Friday next week, I want people to send their emails to empoweredpatient@cnn.com and we will help you with your health care problems. Give us a challenge.

COLLINS: Yeah, absolutely. All right Elizabeth, thank you very much. We will see you next Friday if not before that.

COHEN: That's right.

COLLINS: You don't want to miss a special report this weekend either by senior medical correspondent, Dr. Sanjay Gupta. A mother, a writer, a student all of them addicts, could their brains hold the key to their addiction? Dr. Gupta follows them on their journey for recovery and relapse. "ADDICTION" CNN Saturday and Sunday night, 8:00 Eastern.

Five days after being rescued at sea, a hero's welcome will greet abducted Captain Richard Phillips today. Right now, Phillips is on his way back home to Underhill, Vermont from Kenya. You'll recall Phillips was rescued Sunday from Somali pirates in a daring Navy seals sniper operation. Welcome home signs and balloons are already up in Vermont.

Not child's play, American teens being used as drug-runners by Mexican cartels and paying the price for mistakes.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We have a kid here who lost a load and who had some of his toes chopped off.

(END OF VIDEO CLIP)

COLLINS: We met one former kid smuggler, who turned his life around. (COMMERCIAL BREAK)

COLLINS: President Obama begins the second leg of his Latin American trip today, after wrapping up meetings with his counterpart Mexican President Felipe Calderon. He will head south now for the summit of Americas it's being held in the Caribbean nation of Trinidad and Tobago. There he will meet with other leaders of the western hemisphere. The topics, drug wars, global warming, poverty and the recession.

One topic at the summit, U.S. relations with Cuba. Frozen for half a century, a new thaw may be developing. Cuban President Raul Castro says he is willing to talk to the Obama administration. And he says all grievances are now on the table, including issues that Cuba has always maintained as off-limits.

(BEGIN VIDEO CLIP)

RAUL CASTRO, PRESIDENT OF CUBA (translator): We told the North American government in private and in public that we are prepared, wherever they want, to discuss everything. Human rights, freedom of the press, political prisoners, everything, everything, everything, that they want to discuss.

(END OF VIDEO CLIP)

COLLINS: Raul Castro took over from his ailing brother as you remember, Fidel, one year ago. Earlier this week, President Obama moved to ease travel and other restrictions for Cuban Americans.

It's fantastic money for a teenager -- up to $5,000 a job. So more and more American teens are being lured by Mexican cartels to be drug runners. But the dangers of being caught or worse, screwing up the run, can far outweigh the benefits.

Here now, CNN's Ed Lavandera.

(BEGIN VIDEOTAPE)

ED LAVANDERA, CNN CORRESPONDENT (voice-over): Danny Santos is chasing golden dreams in the boxing ring, a long way from the days of this American kid working for a Mexican drug cartel.

DANNY SANTOS, FORMER TEEN DRUG SMUGGLER: I just didn't care, I had like no -- I had no conscience.

LAVANDERA: Santos is one of thousands of American and Mexican teenagers recruited by the cartels, Santos says that at age 15 he was introduced to the drug world at a party.

SANTOS: It was a friend, had a cousin that knew a guy. And that's where it all started.

LAVANDERA: Santos says that guy connected him to drug kingpins in Juarez, Mexico. He started as a driver for a mid-level cartel member. SANTOS: People feel they can trust you, right? So, then you move on up to something bigger.

LAVANDERA: Something bigger was becoming a cross-border drug smuggler or a mule. The pay, $4,000 for one run.

(on camera): And you weren't scared about driving these drugs across the border? You could just make yourself do it?

SANTOS: Yes. I mean, I was -- I can't say I wasn't nervous. But you just can't show it. I mean, you still know you're driving. You still know what you're doing, an American citizen, all that, right? But you've just got to forget about the fact that you have something illegal in the car.

LAVANDERA (voice-over): That started a four-year smuggling career. Santos is 21 now. He says in all he pocketed about $50,000, making about 20 runs, right through customs checkpoints.

(on camera): Here in El Paso, some 35,000 cars a day cross into the United States. And it's here where drug smugglers are counting on teenagers to blend into this scene.

SANTOS: We've been getting people with drugs on their bodies.

LAVANDERA (voice-over): Customs and border protection officials say in recent months, they've seen a rise in the number of teenage drug smugglers, girls and boys alike, many from well-to-do families, mostly American kids with drug bundles, usually marijuana, strapped to their bodies.

When we watched this girl wearing a bulky sweatshirt on a warm day in El Paso, hands shaking, it raised intense questions from the customs agent.

UNIDENTIFIED MALE: She was so nervous, she was shaking.

LAVANDERA: There were no drugs, but El Paso port director Bill Molaski worries the cartels are refocusing on recruiting kids.

BILL MOLASKI, U.S. CUSTOMS AND BORDER PROTECTION: So, wherever they believe that they could be successful or they find a weak point in our defense of the homeland here, they're going to attempt to exploit that.

JOSE RODRIGUEZ, ATTORNEY, EL PASO COUNTY: I think the cartel is always looking for ways...

LAVANDERA: El Paso County Attorney Jose Rodriguez prosecutes juvenile smugglers. He says teenagers don't understand the danger.

RODRIGUEZ: We had a kid here who lost a load and who had some of his toes chopped off.

LAVANDERA: Danny Santos is lucky. He got out. He says he was only arrested once, with little jail time. He spent away most of the $50,000 he made. But others are ready to take his place.

SANTOS: Let's just say they catch them all tomorrow. You know, the day after tomorrow there's going to be 30 new ones.

LAVANDERA: For many teens along the border, fighting off the temptation never ends.

Ed Lavandera, CNN, El Paso.

(END VIDEOTAPE)

COLLINS: For the last five straight weeks, Wall Street's roll has been on a roll. Can we go for six, though?

Susan Lisovicz at the New York Stock Exchange with details on that.

I'm trying to set it up so that we can kind of call it six right now.

LISOVICZ: Yes, you're teeing it up. And you know, and I can tell you that if the closing bell sounded right now, despite those minor...

COLLINS: Yes.

LISOVICZ: ... losses we're seeing, yes, that it would be six for six. And why is that, Heidi? Well, bank earnings. There's been a lot of nervousness about that. We've heard from some very big companies, and they have been better than expected.

And I should also mention, you know, the past five weeks, by the way, the Dow, the Nasdaq, the S&P up about 20 percent. That's the best five-week period going back to the 1930s. So, let's see if we can add to it.

What we heard, we heard from two major companies today, Citigroup and GE. Both better than expected. But you have to put asterisks next to both of them...

COLLINS: Right.

LISOVICZ: ... because Citigroup, we know, obviously, its troubles. It received $45 billion in TARP money. And while it's better than expected, you see the losses in its credit card division.

So, the toll from the rising unemployment rate hurting companies like J.P. Morgan. We saw the same thing. Also came in better than expected. But this is something to watch out for.

And GE, the same thing. It has a large financial unit. And so, that company made money, but it's something that is troublesome. In the meantime, you're seeing pressure on both of those stocks. Citigroup shares down 11 percent. And the Dow is under pressure. Both GE and Citi are part of the Dow 30. The Nasdaq is down as well. But if the closing bell sounded right now, Heidi... COLLINS: Yes. Too bad we can't make that happen...

LISOVICZ: ... it would be (INAUDIBLE).

COLLINS: ... close it whenever we want, you know?

LISOVICZ: I think there are a lot of folks on Fridays that would like to have it before noon.

COLLINS: Absolutely. All right, Susan, thank you. Appreciate it.

LISOVICZ: You're welcome.

COLLINS: For many of us, drinking coffee and eating chocolate are among life's finer pleasures, but they could have another use: powering your car and heating your home.

Jen Rodgers has our "Energy Fix" now from New York.

Hi there, Jen. What? Really?

JEN ROGERS, CNN CORRESPONDENT: I know. A little crazy, right? But it is true. Two interesting developments to tell you about. Let's start with coffee. Researchers at the University of Nevada have found a way to turn leftover coffee grounds into biodiesel fuel.

Here's what it looks like. You know, because coffee grounds are a waste product, they don't compete with the food supply, and that's been a big criticism of current biodiesel products.

So, we don't have to worry about running out of this, either. Sixteen billion pounds of coffee are grown worldwide every year. That's enough to make 340 million gallons of biodiesel. The researchers estimate making this commercially would only cost about a dollar a gallon. Not a bad price. They're trying to figure out how to do this right now and find some investors to build a pilot plant -- Heidi.

COLLINS: All right. Interesting. I want to know a little bit about the chocolate power, too.

ROGERS: Yes, the chocolate would be interesting. I have some of this right here. Last month, the Public Service of New Hampshire did a test using cocoa bean shells they got from the nearby Lindt chocolate factory. These are some of those shells. You can't eat them. I already tried to look into that.

The utility burned 36,000 pounds of these.

COLLINS: That's good chocolate. That's Swiss chocolate.

ROGERS: Yes, right. It is good, but this is just the shell that's left over. So, they put these into a boiler along with coal to generate electricity. It says every ton of the shells displaces one half a ton of coal. We can't really say yet that it's cleaner. The utility say it's not expecting emissions tests to show any difference -- Heidi.

COLLINS: It might smell better, though. If these fuels...

ROGERS: They're trying to figure that out, too.

COLLINS: Yes. If these fuels catch on, I wonder if we will actually really be smelling coffee and chocolate, though?

ROGERS: Yes, I mean, the scientists right now behind the biodiesel tests say that there is a faint whiff of coffee when their fuel is burned.

COLLINS: No. Really?

ROGERS: Yes, coffee. But they tell us it is much nicer than the french fry smell you get with some other vegetable biodeisels. So, that's a plus there. I've got to tell you, it doesn't look like there's any luck with the chocolate, though. It turns out that coal and cocoa shells burned together don't smell like chocolate. I don't know if that's a good thing or a bad thing because I don't know if I want to walk around town smelling chocolate, so, we're safe (ph).

COLLINS: Yes, yes. I don't know either. All right, Jen, interesting. We'll keep our eye on that one. Appreciate it.

Getting organized now to ease your tax burden later. We'll tell you some simple steps to take the sting out of tax time.

(COMMERCIAL BREAK)

COLLINS: A Maryland man who owed $7,000 in delinquent property taxes has paid every last dollar back, and I mean every last one. He showed up at the tax office with 7,000 $1.00 bills. It took employees hours to count it all. They even had to stay past closing time to verify the amount. The taxpayer insists he did not bring in all of those ones out of spite.

We know it's the last thing that you want to talk about right now, but there are some steps you can take now to ease the sting of tax time next year. So, here with some useful tips, finance expert Kimberly Lankford.

Kimberly, thanks for being with us today.

What we want to do is put all of these tips up on the screen so that people can get a good look at them, and then we'll go through each one again. This is looking ahead now. We've got a lot of time until April 15th, 2010. But it might be a good idea to start thinking about these things now.

The first one says, check for missed deductions. What's that about?

KIMBERLY LANKFORD, KIPLINGER'S PERSONAL FINANCE: Well, this is the perfect time to go through those tax files before you put them a away and take a look at some of the things you didn't get to take. For example, some of the biggest missed deductions are the child care credit. If you have a child under age 13 and both you and your spouse work, you may even be able to write off the cost of day camp during the summer. A lot of people don't realize that.

So, look for some of those points on the tax forms where you couldn't take anything and think, is there anything I can do over the next few months in order to be able to take them next year?

COLLINS: OK. And then also, clean up for next year.

LANKFORD: When you are putting away those files this year, think about the files from the past that you can get rid of. Usually you can only get audited for three years after the tax filing deadline. So, you can usually toss all of those supporting documents, all of those canceled checks and receipts from the years before then.

We usually recommend keeping the tax forms forever. If you're self-employed, you usually want to keep those supporting documents for at least six years. But after that, you can shred or toss a lot of those other documents.

COLLINS: And how about consolidating accounts? That was the next one on your list.

LANKFORD: This is the time of year that you realize, oh, my gosh, I got so many different pieces of paper. Especially if you have brokerage accounts at different firms, if you have mutual fund accounts at different firms. Think about consolidating that next year all with one firm.

You'll only get one piece of paper at tax time, which will be so much easier. And you might even get a discount on some of the fees for having all of your money together under one roof.

COLLINS: All righty. Good idea. What about not waiting to make those IRA contributions. That could be a good one.

LANKFORD: Well, so many people wait until that very last minute to make their IRA contributions. It's April 15th. It was 2009, just the other day, for 2008 contributions. And you do have until April 15, 2010 to make this year's contributions.

But think about making the contribution now if you can, especially if you get a tax refund. It might be a great use for some of that money to put that money in the IRA now. And if you have trouble making all the contribution at once, think about talking to your bank or your brokerage firm and seeing if you can get that money transferred automatically into that IRA account, a little bit every month to make it more manageable, also help with dollar-cost averaging, which helps with investing.

COLLINS: All right. Well, what about readjusting your withholding, then?

LANKFORD: Well, that is the thing. If you have filed your tax forms, and you're waiting to get your refund, and you got a big refund, it might feel good right now. But, what you are actually doing is giving the government a tax-free loan for the year. It would be actually much better if you got a little bit extra money in your paycheck every month.

So, think about adjusting that W-4 form -- talk to your employer about that -- and making so less money is withheld this year so more goes into your paycheck. At kiplinger.com we have a wonderful calculator. It's been adjusted for the new stimulus numbers. It can help you figure out exactly what to put on that form.

COLLINS: Kimberly, I have to say you are the happiest tax tip person I have ever spoken to. We're going to have you back every April so that people can feel good and happy like you about paying their taxes. All right, we sure to appreciate it. Kimberly Lankford.

LANKFORD: Thank you.

COLLINS: Thank you.

For some tips on how you can better handle bad debt and whether you're eligible for the stimulus money, let's go to "The Help Desk." CNN personal finance editor Gerri Willis standing by.

(BEGIN VIDEOTAPE)

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: We want to get you answers to your financial questions. Let's go straight to "The Help Desk."

Greg McBride is a senior financial analyst with Bankrate, and Donna Rosato is a senior writer for "Money." All right, guys, let's get that first question.

Wesley asked, "I'm a senior college, and I currently have two credit card accounts. After a miscommunication with my parents about the balance, I closed one of the accounts when the balance was close to the maximum. I'm currently paying them both off comfortably, and I've not used either of them in quite some time. What do you suggest I do about my situation to avoid damaging my credit score further?"

Greg, how many times have we seen this? You know, walk away from the credit card, right?

GREG MCBRIDE, SENIOR FINANCIAL ANALYST, BANKRATE.COM: Well having closed out that card, that's water under the bridge. What he's doing right now, paying down the debt, making the payments on time, those are the two best things you can do for your credit.

Once that card is paid off, use that remaining card for a token purchase every other month or so. Just be sure to pay off in full. That's the type of habit that will get that credit score on solid ground.

WILLIS: Right, and you know, your credit score is so dependent on how you pay those credit cards. Gary in Michigan asked, "I retired November 1, 2008. I receive a pension from Chrysler and IRA withdrawals, but no Social Security. I have no income. Am I eligible for the $250 payment?" Donna, here he's talking about federal payments from the stimulus bill.

DONNA ROSATO, SENIOR WRITER, "MONEY" MAGAZINE: That's right. In February, the stimulus bill went into effect, and retirees who are on Social Security receiving disability payments, veterans benefits or federal pensions are entitled to a one-time $250 payment. But unfortunately, Gary is not entitled to it. He is not receiving Social Security yet. He may be too young, and he has a private pension. So, unfortunately, he's not going to get that $250.

WILLIS: Right, and you know, so many people who do get the "make work pay" credit, which is the most common thing, obviously, they're not seeing all that much in their paycheck. Greg, do you think that's going to make a big difference to people? I get questions from folks -- should I save it, should I spend it? I can't imagine many people are going to notice the difference.

MCBRIDE: And I think that's by design. If people don't notice the difference, so it's more inclined to get pumped back into the economy. The money's just going to get frittered away and spent. That's in contrast to a year ago, when the checks came out, and people had a very high incidence of saving or paying down debt.

WILLIS: All right, guys, great answers, tough questions.

"The Help Desk" is all about getting you answers. Send me an e- mail to gerri@cnn.com or log on to cnn.com/helpdesk to see more of our financial solutions.

And "The Help Desk" is everywhere. Make sure to check out the latest issue of "Money" magazine on newsstands now.

(END VIDEOTAPE)

COLLINS: Britain's idol now a world singing sensation. We'll hear her sing and find out her next steps to fame.

And Rob Marciano tracking storms from the CNN Severe Weather Center.

Hey, Rob.

ROB MARCIANO, AMS METEOROLOGIST: Hi, Heidi. Severe storms once again across Texas. Major hail yesterday. A major snowstorm happening right now in Denver. Weather is coming up after the break. Stay right there.

(COMMERCIAL BREAK)

COLLINS: Police in Rhode Island say an attack there may be linked to the so-called craigslist killer. Both attacks were at hotels on women who advertised massage services on the free Web site.

This is surveillance video now that we're about to see from Tuesday night in Boston. The woman there was shot to death. Last night, the attack took place in a suburb of Providence. The victim was tied up and held at gunpoint until her husband returned and scared the attacker away. Police say the description of the man appears to match.

Rob Marciano updating us now on the severe weather across the country.

(WEATHER REPORT)

COLLINS: She's an Internet sensation. Susan Boyle shocked a talent show's judges and won hearts around the world with her singing talents. But as CNN's Atika Shubert found out, Boyle's fame hasn't gone to her head.

(BEGIN VIDEOTAPE)

ATIKA SHUBERT, CNN CORRESPONDENT (voice-over): They were laughing at her before she found her place center stage. For a few moments, it felt like everyone was in on a cruel joke. Even the talent judges were rolling their eyes at this unlikely contestant, Susan Boyle, a 47-year-old spinster.

SUSAN BOYLE, SINGING SENSATION (singing): I dreamed a dream in time gone by.

UNIDENTIFIED FEMALE: See, on Saturday, everybody was laughing at her, and I had a wee tear in my eye, and my whole hair stood up on my skin. I was just so -- amazing. Amazing.

SHUBERT: it was amazing because she seemed immune to the joke. And amazing because she seemed to understand how she looked to them and confident with her beautiful voice that she would own the room.

BOYLE: I just thought mentally I'll show them, so I did. If people are cynical, you try and win them 'round, and it worked. Don't tell me how. It must have been a miracle. But it worked.

SHUBERT: Because she didn't look the part, and because her voice is so beautiful, Susan Boyle is now a star the world over. Millions of hits on YouTube, a Facebook fan site selling T-shirts. Demi Moore and Ashton Kutcher are fans on Twitter.

BOYLE: Everybody seems to have embraced me. Suddenly, everybody seems to have apparently fallen in love with me.

SHUBERT: Susan lives in the same house she grew up in, in Blackburn, a working-class village in Scotland. She lives alone with her cat and admits she has never had a boyfriend and never been kissed. Now, she can barely get out the door.

UNIDENTIFIED FEMALE: I was gobsmacked (ph). Everybody was.

SHUBERT: She insists fame won't change her.

BOYLE: Like everyone else. Just your girl next door. That's what it's like. That's exactly what it's like. It hasn't changed me one little bit. I keep my feet very firmly on the ground.

(singing): I dreamed that love would never die...

SHUBERT: She won't confirm rumors a record deal is in the works, but she already has advice for aspiring singers.

BOYLE: Go for it. That's all I can say. Just go for it.

SHUBERT: Boyle is still competing to win Britain's biggest talent show, but she has already won hearts around the world.

Atika Shubert, CNN, Blackburn Village, near Scotland.

(END VIDEOTAPE)

COLLINS: A great Scottish accent just kind of wrapped it all up, too, doesn't it?

Well, many people seem to be cutting back during these economically troubled times. But exactly what are you putting on the chopping block? CNN's Josh Levs has the answer now, sans the Scottish accent, in a revealing report about how we are spending our money.

(COMMERCIAL BREAK)

COLLINS: Cutting back -- a strategy many of you are taking to deal with the recession. CNN's Josh Levs is here now to reveal some results of a new poll detailing some major changes in the way people are actually spending their money.

Right, Josh?

JOSH LEVS, CNN CORRESPONDENT: Yes. It's the most detailed breakdown that I've seen, certainly recently. Very interesting to see how this economy is affecting peoples' lives. It comes from this.

Zoom in for a second so you all can see the new "Time" magazine. And what they're calling it is "The New Frugality." And they're taking a look specifically how people are saving.

Now, last hour we talked about people cutting back on entertainment and gambling. Let's go to a graphic now. I want you to see some more statistics from the brand-new poll that they're just releasing now. It's really interesting.

We're going to start off with this. It's about home repairs. As you can see there, 23 percent of people say they're doing more of their home repairs. About the same percentage are doing more of their own housecleaning now, and about 18 percent are taking on more lawn care themselves.

Now, this not only means they're saving. It also means the people who did that kind of work having a much harder time getting it. And one more I'll show you here, Heidi, on the next screen. This is interesting. It shows another way that people are cutting back this way. They say it affects the car market right now. Twenty-nine percent of people surveyed said they would not buy a car from a U.S. automaker that declares bankruptcy. We keep hearing that word "bankruptcy" in the debate over the carmakers. Interesting stat there -- Heidi.

COLLINS: The poll also looks at how people are feeling. Some people are losing sleep in this economy. We've talked about that quite a bit, too.

LEVS: We have, yes. And this is interesting, too. The latest numbers on that, we can end with this. Let's go to these numbers. You know, a lot of people suffering from anxiety, economic stress. And we're going to show you the numbers here. What they're saying is that -- do we have it? Can we go to last graphic? We don't have it?

There you go. Forty percent said they've been nervous or anxious in the past few months. Thirty-two percent have had trouble sleeping. And then the last stat there, look at that. Twenty-eight percent have had trouble concentrating during the day on what they're supposed to be doing. So, clearly, the anxiety factor comes along with the economic stresses -- Heidi.

COLLINS: Yes. No question about it. Very understandable, too. Josh, appreciate it. Thank you.

LEVS: You bet. Thanks.

COLLINS: I'm Heidi Collins. Thanks for watching, everybody. Focus on Cuba. Now today, President Obama heads to the Summit of the Americas. And while there's expected to be a lot of talk about Cuba, the country's president won't be there.

CNN NEWSROOM coverage of the president's trip continues right now with Tony Harris.