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Economy Shows Signs of Recovery; President Obama to Meet with Israel's President; Taliban Vows to Kill U.S. Soldiers in Afghanistan; Alleged Serial Killer Might Have Led Double Life; College Seniors Struggle to Find Jobs; Utility Wants to Get Solar Power from Space

Aired May 05, 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: Here are some of the other stories we're watching today. Many of the annual Cinco de Mayo celebrations are being canceled in the U.S. and Mexico because of lingering concerns over the H1N1 flu. But Mexico's president promises life is getting back to normal in Mexico City. The city was shut down for several days at the height of the H1N1 scare.

A suicide car bomber strikes a vehicle carrying Pakistani troops, killing six of them. Thirty other people were wounded in the attack at a government checkpoint today, including two children with head wounds. The attack happened just outside the city of Peshawar. The Pakistani military launched an operation into Peshawar Province last week against Taliban militants.

Voters in Detroit deciding on a replacement for disgraced former Mayor Kwame Kilaptrick today. One of the two candidates in the mayoral runoff is basketball Hall of Famer Dave Bing. The winner will complete the seven and a half months left on Kilpatrick's term. Kilpatrick resigned last year after pleading guilty to obstruction of justice.

Happening right now, action on Capitol Hill. Fed Chairman Ben Bernanke in front of the joint economic committee this hour. Will he have good news on the economy? We'll be watching that.

And offering more health care to more people. The Senate Finance Committee getting advice from medical and business experts.

And stopping piracy on the open seas. Senate committees are holding a pair of hearings on that today. They'll also get a look at this video of another Somali pirate attack right after the hijacking of the Maersk Alabama.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: They hit my row, man. They rowed my back...

UNIDENTIFIED MALE: Pirates -- I didn't like that one.

UNIDENTIFIED MALE: They're firing into the steering gear room. They're firing into the steering gear room. Everybody's OK. Left turn. We got another one out here.

(END VIDEO CLIP) COLLINS: Wow. We are keeping an eye on those piracy hearings for you this afternoon. The captain of the Maersk Alabama, you remember Richard Phillips, he will be testifying. The Somali pirates held him hostage for five days last month.

Taking the pulse of the economy. Are things finally getting better? Well, we'll be talking about that, and we could get a more clear idea this hour. Fed Reserve chairman Ben Bernanke in Capitol Hill to give lawmakers a progress report on the economy. We'll also check in on Wall Street, investors there could be facing a white- knuckled ride today.

And Christine Romans of the CNN Money Team is here to break it all down for us this morning. Hey there, Christine.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Hey there, Heidi. Are things getting better? At least they're not getting worse.

COLLINS: Yes, that's true.

ROMANS: And that's what this is all about. It's about whether the Fed chairman says he sees a recovery, maybe later this year into next year. He has used language like that before. What he says about the fragility of the financial system. I mean, he has said a couple of times that all of the forecast and all of the assumptions of the Fed about an eventual recovery depends on making sure that the gains that we've made in keeping the financial system strong or at least healthy continues.

So, he's just beginning that testimony now, and there will be, I'm sure a spirited question and answer session where the people there are going to be asking him about the health of the banks too -- Heidi.

COLLINS: OK. Yes. I imagine they will. The financial situation, though, improving? I mean, are we going to get more glimmers of hope today?

ROMANS: Glimmers of hope, that, of course, is the language that the president has used. You've been hearing economists talk about these little green shoots in the economy. Showing little green growth in the devastation of this recession. Is the worst over? Well, stocks have been telling us that something new is happening here.

Because the stock market is up 34 percent from the March lows. That is an incredible rally. And that is the market saying that the worst is behind us. Why? Well, we've seen pending home sales. That number yesterday up a little bit, 3.2 percent. We've seen some signs of life in the housing market.

COLLINS: But...

ROMANS: Couple of -- right, but we have a couple of things to get through, right?

COLLINS: Well, when we talk about stocks getting higher and saying the worst is behind us, stocks are always so much ahead of us. ROMANS: That's exactly right. OK. Stocks -- you're right. A leading indicator. So, that turns first, if indeed that is what the market is telling us. And we won't know until it's all said and done, frankly. The lagging indicator is the jobs market. And we know that there are many, many more job losses to come.

We'll know if Ben Bernanke shares that feeling still when he begins his testimony here. And we're going to have a jobs report on Friday that's likely to show an unemployment rate of 8.9 percent. So, keep that in mind.

COLLINS: Yes.

ROMANS: You've got the leading indicator, that's the stock market, telling us that the worst is in the rearview mirror and that there is a recovery somewhere down the road. We're not in it yet, but somewhere down the road.

COLLINS: Right. Right.

ROMANS: And you have the jobs market that's telling us that companies are still in trouble and still throwing in the towel and still firing workers.

COLLINS: Definitely.

Quickly, before we let you go, to the stress test about the banks.

ROMANS: Right.

COLLINS: We're going to be seeing some of the results of this. And we have to wonder if the government's going to continue to bail out some of these banks.

ROMANS: Well, that's why we're so keen on what these are going to show. The regulators are going to begin today telling the banks whether they have to raise more money. And they're going to tell us on Thursday, the government will. And this is going to be how many of these banks are going to need to raise more money.

Where are they going to get the money from? And how will investors in the market respond to that? This is kind of an important hurdle to get through this week. But the feeling is, that a number of banks will have to raise more money, Heidi. They're going to be given six months to do it before they'll have to tap anymore government funds.

COLLINS: All right. We're watching closely. A lot of action on the economic sector, if you will today. Thanks so much. Christine Romans, appreciate it.

President Obama dealing with a crisis at home. And now striving for peace in the Middle East. Today he launches his first direct efforts to broker a peace deal in the region. He's meeting with Israeli President Shimon Peres in the first of many high-level meetings.

Suzanne Malveaux is joining us now with more on that. So, one of the issues, Suzanne, that President Obama and President Peres are probably going to be discussing is the establishment of an independent Palestinian state. We have heard talk about this for years, of course. How difficult will it be for President Obama to make some ground on this?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Heidi, I think it's going to be a huge challenge for this president. Obviously, he's taking it on very early in his administration to show a sense of seriousness here. But just take a look at this. There's definitely a split here among the Israelis as well as the Palestinians.

You have Shimon Peres, who is the president, ceremonial post, who is coming out and saying he believes in this two-state solution, Israelis, Palestinians living side by side. You've got the Palestinian leadership of Mahmoud Abbas at the West Bank, pretty much saying the same thing.

But on the other side here, you've got Israel's Prime Minister Benjamin Netanyahu, newly elected. He is not signing off on that approach at this time. You also have Hamas, the leadership of Palestinians in Gaza who are not willing to recognize Israel.

So, you've got two very opposing positions here and a president who is trying to bring all of these sides together. It is a challenge that previous administrations have dealt with.

COLLINS: Yes.

MALVEAUX: They have not be successful. President Obama, at least, is going to give it a shot. It is not going to be easy, Heidi.

COLLINS: No question about it. And one of the other issues that I'm sure will come up is the threat from Iran. How is the president going to handle that?

MALVEAUX: Well, at least when it comes to Iran that the president, President Obama as well as the Israeli leadership seem to be of like-mindedness here when it comes to the threat. That they believe that Iran is actually trying to build some sort of nuclear arsenal that it is not just for energy or civilian purposes.

But we do know that President Obama wants to reach out to the Iranian regime, perhaps Mahmoud Ahmadinejad, and express that there is some wiggle room here, there is an opportunity for tough diplomacy. That is something that we heard from Shimon Peres yesterday, told our own Wolf Blitzer. He says, look, we don't want a war here. God bless them if this works for the Obama administration.

He says, we're not crazy. You know, this is not something we want to, you know, militarily strike Iran. That if tough diplomacy works, good for everybody on all sides. We'll have to wait and see whether or not Ahmadinejad is willing to make those kinds of steps necessary to be in those negotiations... COLLINS: Right.

MALVEAUX: And give up what the U.S. believes is nuclear ambition.

COLLINS: Yes. I'm sure we'll hear a lot more in days to come of exactly what that term "tough diplomacy" could mean. Suzanne Malveaux at the White House this morning. Thanks, Suzanne.

President Obama will keep up his Mideast peace efforts tomorrow as well. He is meeting with Afghan President Hamid Karzai, who is on the right there as we see, and Pakistani President Asif Ali Zardari, who is on the left.

Now President Karzai is in town early doing a little Q and A on terrorism at the Brookings Institution. And ahead of tomorrow's meeting, President Zardari is sitting down with our own Wolf Blitzer in "THE SITUATION ROOM." You can catch that interview at 4:00 and at 6:00 p.m. Eastern.

The U.S. envoy to both Afghanistan and Pakistan is appearing on the Hill today. But it's Pakistan specifically and a growing violence there that Richard Holbrooke is focusing his testimony on. U.S. officials are deeply concerned with the bold moves the Taliban is making in Pakistan, which, of course, is a key ally.

And now a CNN exclusive. Senior international correspondent Nic Robertson went deep into Taliban stronghold to talk with the spokesman for the Taliban's spiritual leader.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, I got a meeting this morning.

ROBERSTON (voice-over): I'm waiting for an exclusive interview with a top member of the Afghan Taliban. The room is small, few possessions. A gun by the computer. There is only one way in and only one way out at this safe house.

We agreed not to reveal the location, but on the way, we were watched. Could this be a set-up? These days, the Taliban are kidnapping reporters.

As he arrives, Zabiullah Mujahid has phones in both hands. He is nervous, although I only notice it later. He has pistol holsters under his jacket. He is spokesman for the Taliban's top leader, Mullah Omar.

Before the interview, he covers his head, refuses to show his face to the camera, but there is nothing hidden about his message: A new Taliban offensive is imminent.

ZABIULLAH MUJAHID, SPOKESMAN FOR AFGHAN TALIBAN LEADER MULLAH OMAR (through translator): This month, there will be more attacks, more suicide attacks, because the war policy has changed as there are new U.S. troops are coming.

ROBERTSON: Twenty thousand more U.S. troops are on their way to Afghanistan in the next few months. Mujahid has a warning for President Obama: However many come, it won't be enough.

MUJAHID (through translator): Afghanistan will be the Vietnam for them. I want to tell you clearly, we will win, and they will die.

ROBERTSON (on camera): You're laughing, but I don't understand how you can laugh when you're up against the strongest army in the world with the drones and the missiles.

MUJAHID (through translator): This is the war of martyrdom. Don't worry about this. We want to fight. We want to fight for martyrdom.

ROBERTSON (voice-over): He tells me to watch this Taliban propaganda video to see how they're targeting U.S. helicopters. You can see the trace of fire from the left and what seems to be an explosion underneath the helicopter.

Incredibly, the same attack appears to be filmed from several angles. The helicopter appears to survive the attack, but the cargo beneath falls off burning. The U.S. military is one target, but Mujahid is drawing the battle lines for a broader war. Key for U.S. success in Afghanistan, a presidential election is expected in fall.

MUJAHID (through translator): We ask for our Muslim brothers and our population not to take part in this election.

ROBERTSON (on camera): Will you stop? Will you try to stop the election?

MUJAHID (through translator): We'll target the Afghan parliamentary members and government officials. So, if there is elections, yes, it's clear, we will target them.

ROBERTSON (voice-over): He claims the Taliban and Afghanistan are getting support from across the border, from Pakistani Taliban, but says they are not involved in the bloody conflict that threatens the stability of nuclear-armed Pakistan.

But are they closely involved with al Qaeda? And terror networks that target the West? After the break, Mujahid talks about what binds the Taliban and al Qaeda.

(END VIDEOTAPE)

COLLINS: The spokesman is one of just two people allowed to speak on behalf of Afghan Taliban leader Mullah Omar. He almost never speaks to Westerners.

Quickly now, I want to take you to Capitol Hill. We see Federal Reserve Chairman Ben Bernanke there, testifying before the joint economic committees, sort of giving a progress report on the economy. Let's go ahead and listen in for just a moment. BEN BERNANKE, CHAIRMAN, FEDERAL RESERVE: An important influence on the near-term economic outlook is the extent to which businesses have been able to shed the unwanted inventories that they accumulated as sales turned down sharply last year.

Some progress has been made. The Bureau of Economic Analysis estimates that in acceleration and inventory liquidation accounted for almost one-half of the reported decline in real GDP in the first quarter. As stocks move into better alignment with sales, a reduction in the pace of inventory liquidation should provide some support to production later this year.

The outlook for economic activity abroad is also an important consideration. The steep drop in U.S. exports that began last fall has been a significant drag on domestic production and any improvement on that front would be helpful. A few indicators suggest, again, quite tentatively that the decline in foreign economic activity may also be moderating.

And has been the case in the United States, investor sentiment and the functioning of financial markets abroad have improved somewhat. As economic activity weakened during the second half of 2008 and prices of energy and other commodities began to fall rapidly, inflationary pressures diminished appreciably.

Weakness in demand and reduced cost pressures have continued to keep inflation low so far this year. Although energy prices have recently risen some, the personal consumption expenditure price index for energy goods and services in March remain more than 20 percent below its level a year earlier. Food price inflation has also continued to slow as the moderation in crop and life stock prices has been passing through to the retail level.

Core PCE inflation, which excludes food and energy prices dropped below an annual rate of 1 percent in the final quarter of 2008 when retailers and auto dealers marked down their prices significantly. In the first quarter of this year, core consumer price inflation moved back up, but to a still low annual rate of 1.5 percent.

We continue to expect economic activity to bottom out, then to turn up later this year. Key elements of this forecast are assessments of the housing market is beginning to stabilize and that the sharp inventory liquidation that has been in progress will slow over the next few quarters. Final demand should also be supported by fiscal and monetary stimulus.

An important caveat is that our forecast assumes continuing gradual repair of the financial system. A relapse in financial conditions would be a significant drag on economic activity and could cause the incipient recovery to stall. I will provide a brief update on financial markets in a moment.

Even after a recovery gets underway, the rate of growth of real economic activity is likely to remain below its longer run potential for a while, implying that the current slack in resource utilization will increase further. We expect that recovery will only gradually gain momentum and that economic slack will diminish slowly.

In particular, businesses are likely to be cautious about hiring, implying that the unemployment rates remain high for a time, even after economic growth resumes. In this environment, we anticipate that inflation will remain low. Indeed, given the sizable margin of slack and resource utilization and diminished cost pressures from oil and other commodities, inflation is likely to move down some over the next year relative to its pace in 2008.

However, inflation expectations is measured by various household and business surveys appeared to have remained relatively stable, which should limit further declines in inflation. As I noted, a sustained recovery in economic recovery in economic activity depends on...

COLLINS: All right. I just wanted to give you a little bit there of Federal Reserve Chairman Ben Bernanke as he testifies before the joint economic committee talking about the current state of the economy, where he sees recovery going and, of course, we're waiting to hear a little bit more about those bank stress tests.

Because the official announcement doesn't come out until tomorrow about how they could fare if the recession gets worse. So, we'll be watching for that. And just as the Federal Reserve chairman is speaking there, we're also getting this breaking news into us now. And I want to make sure we get it out to you right away.

We're learning that General Motors is planning to close 2,600 dealerships. So, interesting that as the Reserve chairman there is before the joint economic committee, we're getting that news. Once again, General Motors to close 2,600 dealerships. We'll look more into that and be back right here in the CNN NEWSROOM in just a moment.

(COMMERCIAL BREAK)

COLLINS: OK. So we want to remind you yet again that I'm blogging now. And we've got a new CNN -- new show page. Pretty cool. And there it is. So, all you do is go to CNN NEWSROOM.

There's a complicated way. You go to programs and you click on that, and then you click on my name, and them boom, there it is. We've been telling you about all kinds of stuff that we have planned in the NEWSROOM and also wanting to hear more about what you would like to hear. So, make sure you go to cnnnewsroom.com and check out our blog/newsroom in the end there.

All right. We also want to get to the weather situation. Because Rob Marciano is watching all of that, of course, across the country today. Looks like you're starting there on the east coast.

(WEATHER REPORT)

COLLINS: Federal investigators are examining the wreckage of the Dallas Cowboys' practice facility now. A strong storm blew the canopy top over and destroyed the facility during a rookie workout session on Saturday. About a dozen people were hurt. Christy Turner was inside when the collapse happened. Here's what she told our affiliate KTXA in Dallas, Ft. Worth.

(BEGIN VIDEO CLIP)

CHRISTY TURNER, COLLAPSE VICTIM: And I squeezed out, and when I stood up, there was nobody near us, and I just screamed help us, help us, we're all trapped. Help us. There's people trapped.

And that moment, all the football players and the coaches came running to us. I think, you know, I'm here talking to you, and I'm alive to talk to you, but there's a coach that's in the hospital that's never going to walk again. And there's a coach that has that broken leg in two spots. There's coaches that have broken backs that are getting surgery, and I have a broken rib.

I got off so good. We all did. Nobody died. Like, we're so lucky.

(END VIDEO CLIP)

COLLINS: A special teams coach and an assistant athletic trainer both had surgery and are expected to get out of the hospital this week.

Outrage in China over the swine flu. Officials are accusing China of unfairly targeting Mexicans there. We'll see what that's about in a moment.

(COMMERCIAL BREAK)

COLLINS: Happening right now, the current swine flu outbreak makes this a good time to talk about health care. The Senate Finance Committee is hearing from experts in the field today. Their focus, expanding health care coverage to more Americans.

More now on the H1N1 virus. The number of confirmed cases worldwide now sits at 1,117 in 21 countries. Twenty-six people have died so far. In Mexico, officials say the battle against the virus is going well, and people there hope things are going to get back to normal. Mexican officials are also expressing outrage about what they call unfair treatment of Mexicans in China.

CNN's senior international correspondent John Vause takes a look.

(BEGIN VIDEOTAPE)

JOHN VAUSE, CNN INTERNATIONAL CORRESPONDENT (voice-over): These ambulances are now taking eight Mexican citizens to the Beijing airport. They've been here under forced quarantine since Saturday. But soon, they will board a jet, which is being chartered by the Mexican government. Earlier that plane touched down in Shanghai, and there, more than 70 Mexican nationals were collected. Many there had also been placed under forced quarantine.

Now, from Beijing, that plane will leave and head to Guangzhou in the southern part of China. And then it will head to Hong Kong. Along the way collecting Mexican citizens, not only who have been placed under quarantine, but also any Mexican who wants to leave China. The Mexican government says they've taken this action because of what it says has been an unfair treatment of its citizens here in China. Saying they've been unfairly singled out.

Many have been placed into forced quarantine simply because they're Mexican. They say they've displayed no flu-like symptoms, and they did not travel from any areas affected by the H1N1 virus. Now the Chinese government denies any allegations, saying everything that's happened here has been simple standard operating procedure.

Meantime, the Chinese government has chartered its own jet, sent it to Mexico to collect about 200 Chinese citizens who have been stranded there since the weekend. And ever since, authorities here have suspended all flights from Mexico.

Now, this had been a growing diplomatic row between the Chinese and the Mexican governments, but with these planes...

VAUSE (on camera): ... now underway, it appears that this diplomatic spat might just be coming to a close. John Vause, CNN, Beijing.

(END VIDEOTAPE)

COLLINS: The big question now on Wall Street. How stressed are the nation's biggest banks? The government has completed vigorous testing, and we are expecting official results coming up within the next couple of days. But early report says many banks did not get a passing grade.

Stephanie Elam is up at the New York Stock Exchange with details on this. All right. So, the official word is going to come out on Thursday, right?

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Right. We're supposed to hear the official word on Thursday. Some reports saying it will be after the bell even on Thursday. So, we have a little bit of time here. But, of course, this is what everyone is speculating about at this point, Heidi. What the results of those stress tests will be.

Several reports are indicating that about 10 of 19 banks tested are going to need to raise some capital. Some could need tens of billions of dollars and we're talking about banks like Wells Fargo, Bank of America, Citigroup, and also some regional banks, as well.

The government is saying, though, that these banks are solvent. None of the banks being tested, none of them will be allowed to fail. And these stress tests were really meant to guard against future losses. That was the whole point of them in the first place, Heidi.

COLLINS: Yes, where are the banks -- I mean, I feel like I'm always asking this, but where are the banks going to get the money?

ELAM: That's what a lot of people want to know, because it doesn't just come from osmosis or anything like that.

COLLINS: That's right.

ELAM: Well, so, there's a few possibilities here. It could come from private investors. Also, the banks could sell some of their assets. Another option could be getting some government money going back to the TARP.

But the White House is saying that they're confident that government money, no more government money will be needed beyond this point. The government will release a lots of information about the banks hoping that it will give investors confidence to invest in them. And that's also key here to get that cycle moving again, grease the wheels if you will, Heidi.

COLLINS: Yes. Will the extra funds be enough, though?

ELAM: Well, investors are hopeful that they will be. Citi, Bank of America, Wells Fargo, their shares have been up sharply since March. And so, stress tests will really measure how banks will do if the recession got worse. That's what they were looking at here. And Bernanke today says the economy does show signs of stabilizing, so hopefully, the extra capital will be enough to keep things going, because many people do believe that the worst of this recession is behind us.

Now, stocks are struggling after yesterday's big run-up. Right now, the Dow industrial's in the red, off 20 points at 8406. Nasdaq off more than 1 percent at 1744. So, we'll be keeping our eyes on that. But pretty much, though, we've been doing a flatline dance for the day so far -- Heidi.

COLLINS: Yes, and quickly before we let you go, Stephanie, this announcement from GM that they're getting ready to close 2,600 dealerships. Pretty big news, or were we expecting this to happen?

ELAM: I think a lot of people were expecting this. The number was what was in question here. We were waiting to see how many dealerships would be closed. But I think for a lot of people in this case, especially for the big automakers, they're looking for streamline.

So, anyone who's investing in those companies, looking for more signs of how they're trying to get leaner and tighter in this time so that they can build back and become a stronger entity. So, not too much of a surprise.

COLLINS: All right, Stephanie Elam, appreciate that from the New York Stock Exchange today.

ELAM: Thanks.

COLLINS: The Class of 2009 faced with hard times already. We're talking to graduating seniors today who are having a hard time finding full-time jobs. We'll also ask them how they're dealing with that disappointment. Parents, this one's for you. (COMMERCIAL BREAK)

COLLINS: So, how tough is the housing market? This is video of crews demolishing a brand-new housing development in Victorville, California. The value of the homes dropped by nearly 50 percent before they were ever even sold. Then vandals and squatters swept in. The owners decided it was just cheaper to knock the homes down than it was to fix and finish the construction. It would have cost $1 million to finish. Instead, it's costing about $100,000 to demolish. What a shame.

Voters in Detroit are deciding on a replacement for Kwame Kilpatrick today. Two candidates are facing off in a mayoral runoff. One of them is former district Pistons -- Detroit Pistons star, that is, David Bing. You see him there. The winner will complete the seven and a half months left on Kilpatrick's term. Now, Kilpatrick, as you remember, resigned last year after pleading guilty to obstruction of justice.

He is 72 years old and a possible serial killer. Police believe John Floyd Thomas may have led a vicious life of crime for more than a half century. So how did he draw so little attention from those around him? Kara Finnstrom talks to a former co-worker.

(BEGIN VIDEOTAPE)

KARA FINNSTROM, CNN CORRESPONDENT (voice-over): Is this the most prolific serial killer in Los Angeles history? L.A. cops say DNA links him to the murders of two elderly women in the 1970s but fear the toll may be much higher.

CHIEF WILLIAM BRATTON, LOS ANGELES POLICE DEPARTMENT: He's also suspected in as many as 25 other murders and scores of rapes that occurred in the Southland during the 1970s and 1980s.

FINNSTROM: His name is John Floyd Thomas Jr., a 72-year-old convicted sexual offender married five times who's been in and out of prison for decades. When he was free, police fear he was preying on and murdering women.

He was also working, holding down jobs as a hospital employee and social worker, leading a seemingly normal life, which criminal profiler Pat Brown insists is exactly what serial killers try to do.

PAT BROWN, CRIMINAL PROFILER: And they present that image, almost like a Clark Kent image that no one will ever suspect that there's a secret life that is actually going on. This is their cover for being able to get away with all their crimes.

FINNSTROM: Double lives. We've seen it before. Son of Sam killer David Berkowitz worked in a post office. John Wayne Gacy was a businessman. BTK killer Dennis Rader was a husband, father and church president.

At the time of his arrest, Thomas was a claims adjuster for the California State Compensation Insurance Fund. And Earl Ofari Hutchinson was his former colleague. What does he remember about the suspected serial killer?

EARL OFARI HUTCHINSON, SUSPECT'S FORMER COLLEAGUE: This was an individual who struck me as someone who was very concerned, very engaging, always very friendly, always had a smile on his face, always very placid, very soft-spoken.

FINNSTROM: Hutchinson also recalls a friendly co-worker who sometimes shared religious e-mails.

HUTCHINSON: There would be scriptural sayings, there would be passages from the Bible, there would inspirational things for the day to live your life by. And I said, ah, I didn't realize that he was a very religious, very spiritual person.

FINNSTROM: And for ten years, never a sign of anger or rage.

HUTCHINSON: Never saw any outward signs of hostility or even being withdrawn. Never saw any of that.

FINNSTROM: He's shocked by the charges. If it turns out Thomas is a serial killer, Brown says it fits the pattern.

BROWN: A psychopath is someone who has no empathy for anyone, who is totally narcissistic. Everything is about him. And he's learned to manipulate people around him. He's learned to lie. And he's learned to get away with what he wants to get away with.

FINNSTROM: Thomas will be arraigned on May 20th. His public defender refused a request from CNN to comment about the case.

Kara Finnstrom for CNN, Los Angeles.

(END VIDEOTAPE)

COLLINS: The face of 2009, faced with hard times already. We are talking to graduating seniors today who are having a pretty hard time finding full-time jobs. We'll ask them how they're dealing with that disappointment. Parents, want to make sure you watch this one.

(COMMERCIAL BREAK)

COLLINS: This week, we're taking a closer look at the Class of 2009. It is graduation season. And that means new grads are heading out into the real world looking for real work. And we're talking to three -- actually two grads now today who fell short in their search for full-time jobs, unfortunately. So, they had to find other ways to get their feet in the door. So, parents, these are some important tips now that you might be able to pass on to your kids, too.

And joining us to talk about their job searches, Krishnan Karunanidhi, and he's a senior at Emory University in Atlanta, and Elizabeth Henley is in Chicago this morning. She's an anthropology mayor at Northwestern University. So, Krishnan, we want to begin with you because we know that you ended up with an internship in a field that you didn't necessarily expect. Tell us a little bit about your story. KRISHNAN KARUNANIDHI, SENIOR, EMORY UNIVERSITY: Well, actually, I'm a senior at Emory University. My major is international studies with an emphasis on political economy. And I currently took a one- year internship position with the Coca-Cola Company in their global I.T. position. So, it's something that's completely irrelevant to my major, something that I really didn't plan on doing.

COLLINS: How does that make you feel?

KARUNANIDHI: It makes me feel a little uncertain at times because, you know, you pay the big bucks to go to college, and then you expect to have a certain type of job with the degree that you earned. And when you come out with an internship in something completely non-related, it's a little disheartening.

COLLINS: Right, but it's a pretty big deal, is it not, in this environment to find, number one, a full-time internship, and number two, that it's paid.

KARUNANIDHI: Absolutely. It's a blessing. I'm not complaining that I actually have something. Both of my roommates have been looking day and night, and they have yet to find anything.

COLLINS: Really. Really.

KARUNANIDHI: Yes.

COLLINS: All right, well, Elizabeth, I want to get to you as well this morning. You haven't been able to find the exact job that you were looking for either, but you have come up with a pretty creative way to pursue your interests and also pay the bills at the same time.

ELIZABETH HENLEY, SENIOR, NORTHWESTERN UNIVERSITY: Yes, this summer, I received grant funding with a fellow Northwestern student to work on an oral history project on gardeners in a community garden in Madison, Wisconsin.

COLLINS: OK. And this is obviously a big deal for you, just in case people missed, but you're an anthropology major, yes?

HENLEY: Yes, I'm an anthropology major. I'm also a geography and international studies major.

COLLINS: OK, so this is right up your alley. When you look forward to taking this step first, do you see that this could, perhaps, lead you into this exact field that you studied so hard to be in?

HENLEY: I would hope so. Next year, it would be great if some funding, you know, appeared for more work, field-based research positions, like what I'm doing this summer. That is what I studied. That is my interest. If not, I'll look elsewhere.

COLLINS: All right. You've been creative so far, so you're probably going to have to end up staying that way, it sounds like. I want to ask both of you, too. Krishnan, you first. If you had known things were going to look the way they do in the job market and economically today, would you have done anything different with your college career?

KARUNANIDHI: To be honest, I think so. I think I probably would've applied to a grad school as opposed to just looking for work or taking a year off. I'm aware that grad school, you know, applicant records are up. I wish I had gotten a head start on probably studying for my GER -- I mean, my GREs, or my DATs for dental school. So, yes, I think I would have changed a little bit.

COLLINS: Is that something that you could still do, though?

KARUNANIDHI: It is. It's an option. I have the year, you know, to work with Coca-Cola, and I have a year off, so it is something that's an option.

COLLINS: Yes, and when we talked to both of you, it'll probably be very good. I think the experts would recommend having no gaps in your resume. So, it'll be nice to have these internships you're doing this summer on that resume.

What about you, Elizabeth? Would you have done anything differently had you known how things would look when you were graduating?

HENLEY: Well, I don't think so. I had the chance to study abroad. I received two grants to do research in Mexico, and all of that was field-based research, which is my interest. So, I don't think I would have, you know, done anything differently because I got to do studies as undergraduate that were very interesting to me.

And at this point, because I've been able to go a different route and find something to do, at least through the summer, I'm happy where I am. We'll see in a couple of months.

COLLINS: Well, that's what I was going to ask. Where do you see yourself in let's say five years, Elizabeth?

HENLEY: Well, I think that really depends on kind of what I do now. If I could continue doing, you know, jobs or projects, like what I'm going to do this summer, you know, field-based research, which is my interest, I would like to continue doing these kind of socially oriented creative projects.

If not, I'm interested in immigration law. I've done a lot of traveling in Mexico, and I'd be able to use my Spanish that way. I think it's a very important issue. So, perhaps I'll go in that direction.

COLLINS: All right, well, it's a pleasure talking to both of you. Congratulations on the graduating. I know it's tough out there. But it sounds like you guys are really trying to navigate the waters very deftly, if you will. Krishnan Karunanidhi -- I had it better the first time, didn't I, Krishnan?

KARUNANIDHI: Yes, you did.

COLLINS: And Elizabeth Henley, we sure do appreciate your time, guys. And good luck to you.

HENLEY: Thank you.

KARUNANIDHI: Thank you.

COLLINS: As you know, it is that time of the year. The Class of 2009 facing the real world with real worries. Tomorrow, we've got some experts on to answer your questions about financial aid, grants, loans, 529 plans and more. So, make sure you send us your questions and comments. Just go to CNN.com/newsroom and then click on my name, or you can send us an e-mail at CNNnewsroom@CNN.com. We are going to be trying to answer a whole lot of those questions tomorrow.

Getting our "Energy Fix" now from space. It's the new frontier for California, searching for a better source of electricity.

(COMMERCIAL BREAK)

COLLINS: Want to get over to Rob Marciano now in the severe weather center, staying on top of all things weather. How about that (INAUDIBLE)?

(WEATHER REPORT)

COLLINS: Hey, look, I want to show this video. Have you seen this?

ROB MARCIANO, AMS METEOROLOGIST: Which one?

COLLINS: This video of this...

MARCIANO: Oh, the (INAUDIBLE). Yes.

COLLINS: ... crash. Yes. What do you know about this? This is from a movie, right?

MARCIANO: Not as much as you because you probably have some info in front of you. But this was a movie that was -- a stunt gone bad.

COLLINS: Whoa!

MARCIANO: Ouch! Ooh. And there's some people that got hurt.

COLLINS: Yes, exactly. Here's what I know. This was from a movie. This was Nicholas Cage's movie, "The Sorcerer's Apprentice." Boy, this was not scripted, by the way. The stuntmen crashed that Ferrari you see there, obviously.

This was supposed to be a chase scene as you saw, but it wasn't supposed to go like that. Slammed into that restaurant there in Times Square. Two people hurt, but we should be absolutely clear, not seriously. So, it did not look good, though, did it? MARCIANO: No, not at all. I can't believe there were that many people around when they were doing that stunt. But I guess that's why the stuntmen get paid the big bucks. I'm sure the folks who were in the path of it don't -- well, maybe they'll get money out of the deal. But we're glad they're mostly OK.

COLLINS: Yes, they are.

MARCIANO: Wow.

COLLINS: All right. We will keep everybody updated on that. But again, two people hurt, but not seriously. All right, Rob, thank you. We'll check back later on.

MARCIANO: Sounds good.

COLLINS: Getting our "Energy Fix" now from space. It's the new frontier for California, searching for a better source of electricity.

(COMMERCIAL BREAK)

COLLINS: Beam me down some electricity, Scottie. It may sound like science fiction, but one California utility is eyeing solar power from space. CNNmoney.com's Poppy Harlow is with us now for our "Energy Fix." High there, Poppy. It sounds pretty cool.

POPPY HARLOW, CNNMONEY.COM: Very cool, but a big caution sign on this one, folks. This is a theory. An interesting one, though. A big utility in California getting involved. You can forget solar panels on your roof. The idea here, Heidi, put them in space.

California's PG&E -- this is a huge utility company -- has actually signed a deal with a start-up company called Solarin (ph) for what would be the first space-based solar station. I am not kidding. The goal is to launch it -- take a look at what it could look like. This is an image what It could look like.

The goal to launch it into orbit by 2016. The electricity would be beamed back to Earth. Apparently, Heidi, it could provide enough power for 240,000 homes in California. But the deal very, very preliminary, just -- the application just went through a few weeks ago. It has to be approved by California regulators -- Heidi.

COLLINS: All right.

HARLOW: What do you make of it?

COLLINS: Well, it looks cool. I don't know how feasible. Obviously things like that take a long, long time to develop. Why do it from space, though, particularly?

HARLOW: Right. There are a few advantages. Namely, the experts we talked to said, first, listen, the sun is always shining in space. You don't have to worry about cloudy days, the nighttime. There's plenty of room in space. No one exactly owns all of that like they own the desert, if you will. Lots of space. Also, the idea is not new. It's been around for decades. It's been studied pretty seriously by NASA and the Pentagon. They say it's possible, but there are so many skeptics out there. Boeing's (ph) earth and space expert says a major challenge is cost. It could cost $1 billion just to launch some of these satellites into space, Heidi. So, the cost could be prohibitive.

COLLINS: Yes, sounds like it. All right, well, an interesting idea to ponder. CNN's Poppy Harlow doing our "Energy Fix" today. Thank you, Poppy.

HARLOW: Sure.

COLLINS: I'm Heidi Collins. Fed Chairman Ben Bernanke is back on Capitol Hill taking questions from lawmakers on the pulse of the economy. Is there news -- good or bad? CNN NEWSROOM continues right now with Melissa Long.