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Obama Resurrects Military Commissions for Terror Detainees; Chrysler Dealers React to Closures; Iranian American Journalist Possessed Classified Documents; New Grads Should Verify Health Insurance Coverage; Consumer Prices Drop at Fastest Rate in 50 Years; Nike Slashes 5 Percent of Global Workforce; Specialized Colleges Help Students Line Up Jobs; E. Pacific Hurricane Season Starts with List of Storm Names; Gates Defends Budget Actions to Republicans; With Combustion Engine Gone, Electric Cars Bring New Look
Aired May 15, 2009 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: Happening now in the news, Pope Benedict has wrapped up his eight-day tour of the Middle East. He had a busy morning in Jerusalem's Old City, including a tour at a site where Jesus was crucified. His visit ended with a farewell ceremony at the airport in Tel Aviv. The pontiff repeated his call for the creation of a Palestinian state.
Gay marriage a step closer to being legal in New Hampshire. The governor says he will sign a bill to legalize same-sex marriage if changes are made to allow churches to decide whether they will conduct the ceremonies. The bill would make New Hampshire the sixth state to legalize gay marriage.
Military commissions for terror suspects. Barack Obama once called them flawed. And when he took office, he suspended them and ordered the prison at Guantanamo Bay closed. Now we hear he is bringing back those trials for some detainees.
CNN's Jill Dougherty is following developments at the White House on this story. Jill, some of these defendants are pretty notorious. What kind of rights are they going to be getting?
JILL DOUGHERTY, CNN CORRESPONDENT: Well, they are notorious. Let's begin with that. Who are these defendants? One of them is Khalid Sheikh Mohammed, who was a mastermind of 9/11. But the president, when he came to office, decided to look very carefully at these commissions. He had criticized, as you pointed out, very strongly the commissions. He suspended them, they studied them, and now he has decided that they can go forward. They can continue, but they have to have extra protections, extra rights for these defendants.
So, let's go through some of the rights. There are three main ones that we're talking about. They are due process rights. One would be limiting hearsay evidence, another one would be banning evidence gained from cruel treatment like waterboarding, and then more latitude for these defendants to choose their own lawyers.
Now, these are not the full rights that a person in civilian courts in the United States would have, but it's more than they did have.
COLLINS: So, it is fair then to say that there will probably be some liberal supporters who are going to be really angry about this that these commissions are going forward at all? And then some conservatives who will say, why do they need extended rights?
DOUGHERTY: Right. It is -- you know, this is a big debate because who these people are, what kind of defense they should be able to have, what kind of rights is really the nub of the issue. The liberals would say these things were flawed from the beginning, they are unconstitutional and they should be stopped, these commissions.
The people, let's say more conservatives, would say these people really shouldn't have the full rights that American citizens or people in courts here should have. But nobody's really saying what rights precisely should they have. That's really the debate. Who are they? And should they be protected?
COLLINS: Exactly. All right. Jill Dougherty, we'll be following the story alongside you. Thanks so much.
Charges the president is flip-flopping on this issue are coming from both his detractors and supporters. Hear now part of a conversation CNN's Anderson Cooper had last night with Democratic strategist Paul Begala and Ari Fleischer, onetime press secretary to President George W. Bush.
(BEGIN VIDEO CLIP)
ANDERSON COOPER, CNN ANCHOR, "ANDERSON COOPER 360": Barack Obama, then-Senator Obama said the method had been an enormous failure, these military tribunals. He declared as president he would "reject the Military Commissions Act." If he brings backs the commissions, how is that going to reflect on him now?
PAUL BEGALA, DEMOCRATIC STRATEGIST: You know, it'll be a flip- flop. But what he'll do is dress it up. And there's valid distinctions, I think which you'll hear from the White House, is an expression that we're going to have more process, more due process. We're going to be more careful that the act itself was too limited and restricted in terms of providing -- for due process in these cases.
But I don't think there's anything wrong with a president, particularly in national security seeing that the world as it is in the White House is kind of different than it seemed on the campaign trail. Every good president goes through that.
COOPER: Ari, is this a vindication of some more of President Bush's policy?
ARI FLEISHER, FORMER GEORGE W. BUSH WHITE HOUSE PRESS SECRETARY: Well, of course, it is. I think it's a recognition of how President Bush made a lot of unpopular decisions. He was vilified for it. And I think the three words Barack Obama ought to use in explaining this flip-flop is "I was wrong." He ought to say that. Just as he was wrong when he wanted to release all those additional photos to comply with the ACLU lawsuit. He should fought that lawsuit. He flip- flopped on that this week too.
COOPER: So, Ari, you don't buy the whole situation has changed, it's a different world we face now?
FLEISHER: No, it's the same world. He had access to the same set of intelligence briefings when he was a senator. He knew these things at the time. And what I think would be cynical, as Paul said, he's going to dress this up. This is not meant to be dressed up or dressed down. These are serious terrorists who need to be kept.
(END VIDEO CLIP)
COLLINS: It's possible President Obama will order these trials for no more than 20 detainees, and they include five men charged in the 9/11 attack. But we are also hearing those numbers could change. So, of course, we'll keep our eye on that for you, as well.
General Motors delivering pink slips today. Just about 30 minutes ago, we learned that GM has already informed 1,100 dealerships that they're being closed down. This comes just one day after Chrysler cut nearly 800 dealers. Those 1,100 GM dealerships though we're told their contracts will be terminated as of October 2010, but many may close by the end of the year. GM won't be releasing a list of the affected dealers just yet. It's all part of GM's desperate cost-cutting plan.
The automaker lost $6 billion in the first quarter of this year. GM's CEO says the company may not be able to avoid filing for bankruptcy. GM's decision today to close 1,100 dealerships comes as Chrysler is shutting nearly 800 of its own, as we have said. Now CNN's Mary Snow reports, the closings are not just tough on the dealers, but of course, on their communities too.
(BEGIN VIDEOTAPE)
MARY SNOW, CNN CORRESPONDENT (voice-over): For brothers Rob and Rick Engel, a business that took 22 years to build unravels within minutes when they got a phone call and letter telling them it was over for their two Chrysler car dealerships.
ROB ENGEL, CHRYSLER DEALER: I'm very upset, shock, no doubt anger may set in. It's a decision that is for us very illogical.
SNOW: The Engels expected one, but not both of their dealerships to be on the cutting block. They say they've been profitable through the economic downturn. And while they plan to appeal, they don't know what comes next.
RICK ENGEL, CHRYSLER DEALER: People ask us what we do for a living. We don't say that we own a car dealership, we say we are car dealers. So it's a little bit of a difference. This is our life, it's all I know.
ROB ENGEL: It's our identity.
SNOW: Their father escaped the Nazis, joined the British army and was trained to fix tanks and jeeps. He got into the car business, and his sons followed suit, owning two dealerships employing 60 people. Some have been here from the start. Throughout the day, they delivered the grim news to workers. As they did, others were in Washington pleading for lawmakers for help.
UNIDENTIFIED MALE: We understand there's going to be a consolidation of dealers. We just think the process needs to be slowed down.
SNOW: Chrysler, which detailed its plan in bankruptcy court, blamed the unprecedented decline in the industry, saying it plans to make the action final on June 9th. And along with jobs lost, communities like Wyckoff, New Jersey, will feel the effects of the dealership no longer sponsoring teams, charities and businesses.
RICK ENGEL: We're consistently asked by local groups, whether it's a local Boy Scout who is putting together a project that needs $50...
ROB ENGEL: ... to something larger like cystic fibrosis or leukemia or any of these things that we support.
SNOW (on camera): And his dealership has made its mark on its community. It's been here since 1988. And for many of these small towns, losing these dealerships could also mean losing their biggest employers. Mary Snow, CNN, Wycoff, New Jersey.
(END VIDEOTAPE)
COLLINS: Making it safer to fly, the Senate plans to hold several hearings on aviation safety next month. A three-day NTSB hearing into the commuter plane crash outside Buffalo last February has wrapped up now. Testimony revealed pilot training and fatigue may have contributed to the accident that killed 50 people. The mother of the co-pilot who died in the crash said her daughter and the pilot are being used as scapegoats.
Meanwhile, pilot pay is also in the spotlight now. Testimony reveals many commuter pilots are underpaid and overworked. CNN's Jason Carroll reports.
(BEGIN VIDEOTAPE)
JASON CARROLL, CNN NATIONAL CORRESPONDENT (voice-over): The investigation into the crash of Colgan Air Flight 3407 revealed something many outside the aviation industry may not have known.
UNIDENTIFIED MALE: Dirty little secret that we're not paying these folks enough to fly safely.
CARROLL: $23,900. That's how much First Officer Rebecca Shaw made a year working for Colgan Air, an amount that raised concerns with NTSB investigators and came as a shock to her mother.
LYN MORRIS, MOTHER OF CO-PILOT: She didn't tell me what she was making. I was amazed. I thought she would be making a lot more. CARROLL: Shaw had a second job at a coffee shop when first hired, and she lived with her parents in Seattle. Investigators questioned if that salary prevented Shaw from living closer to her job in Newark, New Jersey. She took two flights cross-country overnight before the doomed flight, and did that, investigators ask, prevent her from getting needed rest?
MORRIS: I don't think she came to work too tired. I think she came to work ready to do her job and do it to the very best of her ability.
CARROLL: Pilot Ben Berman said the airlines have been cutting back for years. Berman is with a major carrier and just took a 25 percent pay cut. Still, it's better, he says, than the days of flying a regional jet.
BEN BERMAN, COMMERCIAL PILOT: I suffered as a regional pilot for years, and I started out at 11,284. Very, very difficult to live life.
CARROLL: Some aviation experts say while pilots are doing their best, low pay could lead to complications in the cockpit.
CAPT. PAUL RICE, AIR LINE PILOTS ASSOCIATION: Flying is an exacting business and, as such, you have to have all of your capacities available to you.
CARROLL: The president of the Regional Airline Association takes offense to suggestions lack of pay equals lack of performance.
ROGER COHEN, REGIONAL AIRLINE ASSOCIATION: This kind of linkage just doesn't make any sense to any average laymen out there that someone would do less of a job to protect his or her own life, let alone their responsibility to the passengers simply because they weren't paid as much.
CARROLL: The average annual starting pay for a regional pilot about $18,000. Compared to a janitor, $21,000, or a New York City cab driver with just a few years' experience, $22,000. Some passengers say it is time to pay pilots more.
UNIDENTIFIED FEMALE: I am putting my life in their hands and so I think they need to up that to whatever it takes.
UNIDENTIFIED MALE: Everything about the airlines makes me nervous. Yes.
(END VIDEOTAPE)
COLLINS: Jason joining us now live from New York. Boy, Jason, there's so many issues to talk about here.
CARROLL: Yes.
COLLINS: You kind of have to wonder, as the consumer, as the passenger, would people have a problem with paying more for their airline tickets with regard to safety and experience in the cockpit?
CARROLL: Well, you know, you heard that one passenger say whatever it takes.
COLLINS: Right. But really?
CARROLL: But really? Right. Exactly. You have to wonder if you end up paying, you know, $100 or more for a ticket that used to be very inexpensive, are passengers going to start complaining? And that's part of -- that's been part of the argument, that you know, all along. This isn't the first time we've heard these calls for higher pay for some of these pilots.
COLLINS: No.
CARROLL: You know, but you've got to deal with consumers now who are used to paying so much less than they did in years past for a flight.
COLLINS: Yes, and there is already a lot of complaining when the summer airline strikes were being talked about. One of the first places that they wanted to go to cut the highly compensated pilots. And we saw, you know, 40 percent to 50 percent pay cuts there. So, very interesting. Jason Carroll, sure do appreciate it. A lot more to discuss there, I'm sure.
An SUV rollover in a flooded creek. We'll tell you what happened to the driver of this car.
ROB MARCIANO, AMS METEOROLOGIST: My goodness. I'm Rob Marciano at the CNN weather center. Severe weather expected across the Plains, with more rain in areas like that that have seen way too much over the last couple of weeks. Weather is coming up when the CNN NEWSROOM comes right back.
(COMMERCIAL BREAK)
COLLINS: An American journalist released this week from an Iranian prison is now in Austria. Roxana Saberi says she plans to rest for a few days in Vienna before heading home to the United States. Saberi was in prison for four months on espionage charges. She was released Monday after an Iranian appeals court reviewed her case. But Saberi says she's not ready to talk about details of the case just yet.
(BEGIN VIDEO CLIP)
ROXANA SABERI, FREED JOURNALIST: There have been various statements made about my case over the past two days. And I just I think that if somebody is supposed to speak about my case from now on, nobody knows about it as well as I do. And I will talk about more in the future, I hope. But I am not prepared at this time.
(END VIDEO CLIP)
COLLINS: Joining us now, CNN's chief international correspondent, Christiane Amanpour. So, Christiane, Roxana Saberi's sentence was reduced. She's left Iran, but can you explain what's to come for her now?
CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT: Well, Heidi, this is a more complex case, the more that gets revealed. And what certainly happened is after she got that eight-year espionage sentence after a one-day secret closed-door session in Tehran. She became sort of a symbol of jailed journalists around the world, and there was a huge international outpouring and outcry about what happened to her.
Now, that she has had that reduced to a two-year suspended sentence and been released, her lawyer is speaking, and also sources close to Saberi have directly contacted her lawyer. And he has been saying that she actually was in possession of a classified document that were related to the Expediency Council, which is a powerful influential advisory body to the supreme leader in Iran, Ayatollah Khamenei, who is at the top of Iran's theocracy.
She apparently was working as a translator back in 2003, and this document related to the Iranian analysis of the U.S. war in Iraq. So, these are now posing additional facts and making this case more complex because certainly my sources, even before this appeals process had told me that the reason she had been taken in, questioned, jailed, and eventually given that very harsh sentence was because she'd been found with documents and indeed...
COLLINS: Yes.
AMANPOUR: Also, they said connected to people who may have been working against the Iranian government.
COLLINS: OK. Well, I guess that's just it. Because we do know there were classified documents. There were top-secret documents. Do we know more about the details of what exactly was in those documents?
AMANPOUR: Well, according to the lawyer, this was an Iranian internal document regarding its analysis on the Iraq war. And this was back in 2003. The question is, why was she in possession of it? Why did she have it? Why did she leave the building with it? And you know, there are many suggestions as to why. Some are saying because she was naive. She didn't know any better. She took it. She was going to use it eventually in a book.
Apparently she has not used it in any of her reporting. But of course, as she said, she hasn't yet spoken out about this case. But I think it's important. Certainly Iranian officials are telling me that one of the reasons she was released was and could be read as a gesture of goodwill to the United States and particularly to President Obama, who had publicly called for her release and publicly said that she had not been spying for the United States.
But I also know there was quite a tussle inside Iran between the sort of hard liners, the intelligence, and security agencies who wanted, perhaps to keep her in because of the importance of this document and people close to the President Ahmadinejad who basically deemed that it was not worth keeping her in politically that it was not worth this for Iran at this time.
And you know Ahmadinejad himself wrote a letter to the judiciary and called for a speedy and fair appeals process after that first conviction was handed down in April.
COLLINS: All right. I assume we will be hearing a lot more about the case, as you say, clearly not over yet. Surely do appreciate it our chief correspondent Christiane Amanpour. Thanks, Christiane.
An Indiana woman on her way to work in the dark never saw the small bridge in front of her had been washed out by flood waters. And her SUV went right into the creek. Fire crews rescued her before the car did that. The current swept it away and flipped it over several times. A tow truck crew was able to pull the car out a little bit later on. So yes, Rob Marciano joining us now in the severe weather center. Weather in the central part of the country, pretty nasty for a while.
MARCIANO: Yes and really the rain has been ongoing. In some cases, you know, 20 of the last 25 days in places like eastern Oklahoma, places like Indiana like you saw, it's just saturated ground. And this is a picture of Chicago. There's the Magnificent Mile. You're going to see some rainfall today, as well, heavy at times. A flash flood watch in effect for Chicago and some of the surrounding areas. So, be aware of that.
(WEATHER REPORT)
And then today the beginning of the Pacific hurricane season, and the National Hurricane Center has just put out a new Saffir-Simpson Scale, which basically gets rid of the impact of storm surge.
Because we found between Hurricane Katrina and just most recently Hurricane Ike that we were kind of underestimating some storms. You can't really predict well the storm surge just from the Saffir-Simpson Scale. It has a lot to do with the structure of the storm, how large the storm is, where the storm is impacting potentially the U.S. because of the symmetry of the way the ocean is shaped underneath.
Basically the Saffir-Simpson scale going forward is only going to be a measure of wind, which is pretty much what most people have recognized it anyway. But we'll try to nail down the storm surge on an individual storm basis for this hurricane season with on the Atlantic side starts June 1st.
COLLINS: Got it. I did not know there were problems with the Saffir-Simpson Scale.
MARCIANO: Well, there weren't big problems, but you know, they're not as good as it could have been.
COLLINS: Got it. All right. Rob, thank you.
MARCIANO: All right. You got it. COLLINS: In New York, school is out, not for summer, for swine flu. Hundreds of students stay home as H1N1 spreads to more city schools.
(COMMERCIAL BREAK)
COLLINS: New York City taking no chances with the swine flu. It's closing three schools after tests confirmed several new cases of H1N1.
(BEGIN VIDEO CLIP)
MAYOR MICHAEL BLOOMBERG, NEW YORK: H1N1 has been documented in four students at IS-238 as well as in a staff member at the school who is critically ill. More than 50 students have been sent home from the school with flu-like symptoms since Wednesday, May 6th.
(END VIDEO CLIP)
COLLINS: City officials decided to close two other schools after dozens of students came down with flu-like symptoms. In one school alone, more than 240 children called in sick. All three schools are expected to stay closed for at least a week.
It's graduation time, and along with looking for jobs, many grads are also trying to figure out how to afford health insurance. Look no further. CNN's senior medical correspondent Elizabeth Cohen is joining us now with this week's "Empower Me" segment. Thanks for being here, Elizabeth, on this. Because we've had so many questions about how to do this and how to be able to afford it, I should probably say. That's obviously part of the issue here.
I want to get to this one from Karen. She writes this: "My daughter is graduating from college in May. And so far has had no luck in her job search. What recommendations do you have for students who are graduating and cannot find jobs?"
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Well, Karen, we know because we read her e-mail. She lives in Wyoming. And so here's the situation. She's about to lose her health insurance because in Wyoming, insurance companies don't have to -- a child doesn't have to stay on the -- can go off the dependent's insurance. To put that in another way, insurance companies are free to say to a kid over the age of 19, see you later.
COLLINS: OK.
COHEN: After you graduate, you're gone, you're out of here. So, what she's going to have to do is try and find health insurance on her own. So, let's take a look at how much it costs to get a policy when you are young and healthy. So, we asked the folks at the eHealth Insurance to do some shopping around for us. And these are the lowest prices for insurance policies that have $1,000 deductible.
In Chicago, it would be $136 per month, Dallas, $117 per month, Miami, $208 a month. So, that sort of gives you an idea for how much it would cost. Now, if Karen's daughter has a pre-existing condition, which of course most young people don't. But if she did, that's a whole other ball of wax. And I did a column yesterday on how to find insurance when you have a pre-existing condition.
COLLINS: Yes.
COHEN: Cnn.com/empoweredpatient. That's where you need to go if you're in that situation.
COLLINS: Yes. Lots of kids have diabetes, I mean, and things like that.
COHEN: It's true. In these days, so many kids, for example, are on ADD drugs. And that can be considered a pre-existing condition, having ADD.
COLLINS: Yes.
COHEN: So, probably more kids with pre-existing conditions now than years ago.
COLLINS: Yes. Probably. So, talk about some of the other states. This is Wyoming, so what are the rules in other states? I guess on average, how long can a graduate stay on mom and dad's insurance?
COHEN: You know what, other states are much better than Wyoming. For example, in some states, a college grad can stay on mom and dad's insurance until they're 26. So, that's obviously a better situation...
COLLINS: Yes.
COHEN: And so, what you have to do is, you have to check out with your state insurance commissioner and find out, hey, what's the rule in my state? Don't just go by what your insurance company says, they may be violating the law. So check with your state and find out what are the rules here? Do they have to keep my kid on?
COLLINS: All right. Very good idea. Next week, we're going to answer more viewer questions.
COHEN: That's right. Every Friday.
COLLINS: How do they get a hold of you?
COHEN: Every Friday is "Empower me" Friday. So, send me your questions to empowerpatient@cnn.com. We'll pick one or two and answer them next week.
COLLINS: All right. Very good. Elizabeth Cohen, thank you. Appreciate it.
Real worry, real world, real worries. The uncertain job market has taken the fun out of graduation day for some members of the class of 2009. Some others have found a way around that uncertainty. (COMMERCIAL BREAK)
COLLINS: The recession has made the last 18 months extremely volatile for American wallets, with everything from stock prices to what we pay for food, energy swinging wildly. But we are seeing a dramatic trend when it comes to inflation overall. Susan Lisovicz on the floor of the New York Stock Exchange now with more on that. Hello again there, Susan.
SUSAN LISOVICZ, CNN CORRESPONDENT: Oh, yes, Heidi. We know something about volatility here on Wall Street. But, you know, we have seen a decisive trend, that's for sure, when it comes to inflation. And we got another report on that. The consumer level, consumer price remained unchanged. That was in line with forecasts. And that was the April reading.
But year over year is something that is a real eye-opener. Over the past 12 months, consumer prices declined at the fastest rate in more than 50 years. And the Fed said last month that it expects inflation to remain subdued. That's helpful. As long as the prices don't drop too much, that is helpful at a time when we are watching every penny that we've got.
And what we're seeing in the meantime here on Wall Street, well, prices are a little bit higher. We've seen a little inflation. The Dow is up right now 28 points. Nasdaq is up 10. We're going to need a lot more than that, though, to make it another weekly win streak -- Heidi.
COLLINS: Yes, no kidding. So, not a lot of action today, but we have seen stocks rally for the last couple months because of a sense that things are getting better. And that's an important point. I mean, a sense that things are getting better. A lot of this totally about perception.
LISOVICZ: It's huge when it comes to confidence whether it's consumer behavior or investor behavior. And, you know, of course, "The Wall Street Journal" does regular surveys to see what economists have to say about the trends we've been seeing, as well. And they expect the recession to end this August.
So, just a few months from now, but they say, of course, it could take years to deal with the slack that we've developed from this very deep recession. Now, remember that even if the economy technically comes out of recession this summer, it may not feel that way because the unemployment rate is expected to rise to get up to close to 11 percent, economists said in this survey, by the end of the year. And even if you have a job, many economists in and outside of this survey say that we are savers now. We're not spenders. We learned a very painful lesson from all of the excess that created this financial bubble -- Heidi.
COLLINS: Yes, but they are feeling a little bit more upbeat about the financial sector anyway, yes?
LISOVICZ: That's right. And props to Ben Bernanke and Tim Geithner coming out of these stress tests. There was a lot of ridicule about it, a lot of criticism and fear about nationalizing banks and so on with all of the government intervention.
But this is a tough crowd, and some of them said that the Federal Reserve in particular pulled out its big guns, and a number of them called Ben Bernanke a hero. I'm sure he's had a lot of sleepless nights, but they said the financial sector has stabilized, and it's something we've been talking about for some time, and we've been seeing it with the rally in financial stocks -- Heidi.
COLLINS: All right. Susan Lisovicz, watching all of it for us right there at the New York Stock Exchange. Thank you.
LISOVICZ: You're welcome.
COLLINS: Have a great weekend, Susan.
Job cuts coming to Nike, all part of restructuring announced back in February. Nike will slash about 1,750 jobs worldwide or about 5 percent of its global workforce. About 500 other jobs lost will be at its world headquarters in Beaverton, Oregon. And that is a concern for the mayor there.
(BEGIN VIDEO CLIP)
MAYOR DENNY DOYLE, BEAVERTON, OREGON: All I can say is we're going to try to work with Nike to see if we can't find additional employment somewhere in the city or in the area because we don't want the families to move.
(END VIDEO CLIP)
COLLINS: Jobless, uninsured and struggling to pay for a prescription drug. Many Americans are. Now Pfizer wants to help out. The pharmaceutical company is giving away many of its medications to customers who have lost their jobs this year. The giveaway includes more than 70 medications, including the popular drug Lipitor and Viagra.
Real worries for the Class of 2009. Graduating without a job lined up. Well, that's where more specialized schools may have an advantage in these tough economic times. Joining us now via Skype to talk about that is Jerome Kotrba and Danny Warren. Both, as you can see, are graduating today from Neumont College in South Jordan, Utah. Like to say congratulations. You guys look great in the old cap and gown there.
UNIDENTIFIED MALE: Thank you.
UNIDENTIFIED MALE: Thank you.
COLLINS: I also want to talk to you a little bit about why you chose Neumont in particular. In fact, Danny, you're 22. As you said, graduating today. Why did you go to Neumont?
DANNY WARREN, NEUMONT UNIVERSITY STUDENT: I went to Neumont to really experience more hands-on learning, project-based learning, is what Neumont really focuses on. And it's really a practical use in order to get out to the workforce quickly and effectively.
COLLINS: And Jerome, what about you? You're 30. You were working in the housing industry, actually. And then you got...
JEROME KOTRBA, NEUMONT UNIVERSITY STUDENT: Yes, I was working in manufacturing, and we were related to housing. And so, I kind of experienced what a lot of Americans are kind of going through right now, where I was laid off and kind of forced to look for something new.
And so, when I decided I wanted to explore the field of computer science, I started looking around at some the various universities that were out there that focused on that type of education. And Neumont University offered that. When I was looking around, they definitely had all of the features that I was looking for.
COLLINS: OK. But does Neumont not also say, hey, we know specifically, because we're so specialized, how to get you a job upon graduation?
KOTRBA: Well, they definitely have a career services center that's, you know, beyond what you would probably find in most universities. I mean, they really set up not only just relationships but partnerships with not only local businesses, but businesses across the country. And so, before a lot of the students even graduate, we've been exposed to quite a few companies already.
COLLINS: Interesting. So, Danny, you paid something like $72,000 for your two and a half years at Neumont. Would you say at this point and on this day, when you're graduating, that it was worth it?
WARREN: I would say it's definitely worth it. They say that the average salary for Neumont is about $60,000. And I would say in that ballpark is where my salary's at, as well.
COLLINS: I'm sorry, it's a little bit hard to understand. You said the average salary that they not guaranteed because that's a very strong word, but that they sort of push you towards is about $60,000.
WARREN: Well, the skill set you leave Neumont with is a skill set that can get you a job. And so, when leaving Neumont, you expect to be able to make within that ballpark.
COLLINS: Yes, got it.
WARREN: And that's where my salary's at.
COLLINS: And what do you think, Jerome? Was it worth it?
KOTRBA: Oh, definitely, yes. I had some apprehension to it at the very start. But then I even looked at it and said, well, it is an accelerated program, so you complete earlier. You're out in the workforce sooner. And you actually start making a salary before you probably normally would.
COLLINS: Understood. And the reason we say that is because we looked at some other costs here. According to the American Association of Community Colleges, many other ones go for something like $2,360 a year, four-year colleges $6,185, and then as we see, Neumont here, $28,800 per year. So, significantly more expensive.
But that's why I wanted to know if you guys thought it was worth it. Quickly, quickly, guys, I want to hear about the jobs that you have lined up. Danny, what are you going to go and do?
WARREN: I work for a company out in San Diego. They do a lot of touchscreen work. They're called InterKnowlogy. And that's a lot of custom software development.
COLLINS: OK, gotcha. Jerome, how about you?
KOTRBA: I'm working for a company called RFinity, and we're working on some really cool exciting new ventures. We're building an actual mobile transaction system that's extremely secure. And it could actually be expanded to a lot of other areas, as well, so.
COLLINS: All right, guys. Well, hey, good luck. Have a great time today at graduation, and congratulations to you both. Thanks for coming on to talk to us. We appreciate it. Jerome Kotrba and Danny Warren taking time out.
KOTRBA: Thank you.
WARREN: Thank you.
COLLINS: All right. The Class of '09 discussion hot on our blog today. We want to know what you think. Would you pay higher tuition if you felt the school could essentially guarantee or at least really promise you a well-paying job after graduation? Go to CNN.com/newsroom, click on "Heidi" and post your comments there.
A beautiful day for a walk in space. And who should know better than Michael Mossimino? He's one of the two astronauts who had ventured outside the shuttle this morning.
(COMMERCIAL BREAK)
COLLINS: Talk about far-out fix-it jobs. Two Atlantis astronauts are floating around the Hubble Space Telescope right now. It is the second of five planned spacewalks to outfit the observatory with some new gyroscopes and batteries. It's also the final repair mission to the Hubble. Yesterday, astronauts successfully installed a new camera -- as we look at these live pictures, of course -- a new camera the size of a baby grand piano. Love those pictures.
Rob Marciano back in the severe weather center today, talking more about severe weather that is kind of all over the -- oh, are we going back to space?
MARCIANO: I don't know. I just saw it up on my board. COLLINS: It's cool, right?
MARCIANO: (INAUDIBLE) so this is a live picture of the spacewalk they're doing right now?
COLLINS: Yes, it is, indeed, the second of five.
MARCIANO: So, they're just kind of holding on to each other, and just, you don't want one to float away, I suppose.
COLLINS: I kind of -- might -- they've got some...
MARCIANO: They've got more going on than that, right, to secure them?
COLLINS: A little simplified, but yes.
MARCIANO: They're roped off more than that, OK.
(WEATHER REPORT)
MARCIANO: And just to reiterate, today is the start of the Eastern Pacific hurricane season, which has the following names to start the list: Andres, Blanca, Carlos, Dolores or Dolores, Enrique, Felicia -- these are fun names to say.
COLLINS: Yes. Yes.
MARCIANO: Right, and then Kevin, Linda and Marty.
(LAUGHTER)
COLLINS: Well, hopefully, we won't ever get that far down the list.
MARCIANO: Yes, that's encouraging thinking.
COLLINS: Yes. Hey, who are you rooting for at Preakness? The girl?
MARCIANO: Would that be the right thing to do?
COLLINS: Yes.
MARICANO: Of course. I'm a progressive man. I'm going to go for the filly.
COLLINS: OK, very good. All right, Rob, we'll check back later. Thanks.
MARCIANO: OK.
COLLINS: Safety of retirement funds and reducing mortgage payments, the two issues personal finance editor Gerri Willis is working on at "The Help Desk" this week.
(BEGIN VIDEOTAPE)
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: We want to get you answers to your financial questions. Let's get straight to "The Help Desk." Walter Updegrave is a senior editor at "Money," and Doug Flynn is a certified financial planner and founder of Flynn Zito Capital Management.
Let's get right to the questions. Louie asks, "My wife and I are retired teachers, and we have our retirement funds in two fixed annuities with different companies, one at 3.5 percent and the other at 4.5 percent. Are these good investments for the bulk of our funds, and are they safe there?"
Walter, everybody's obsessed with safety.
WALTER UPDEGRAVE, SENIOR EDITOR, "MONEY": Sure. Well, let's take the investment part first. Basically, these are fixed-income investments. It's kind of like a CD, except you're getting it from the insurance company instead of the bank. Now, that may be good. You're getting interest. In case of an annuity, it's tax-deferred interest. But you're not going to get any capital growth from this. And I think most retirees want at least a little bit of capital growth.
WILLIS: Your return is locked in.
UPDEGRAVE: Yes. You're just getting an interest rate of return. So, I don't think you want to have all of your money in these annuities. The other thing you want to be careful of is, sometimes getting access to your money in an annuity can be sometimes expensive. Most annuities have surrender charges that can often go up as high as 10 percent and last for several years, so you may have to pay to get your money out.
WILLIS: All right.
UPDEGRAVE: Now, on the safety part, there are two things. One is, you want to make sure you have a highly rated insurer, rated A or better by A.M. Best. And then, while they don't have FDIC insurance, annuities are covered by something called state guarantee associations. And you can check out your state's limit -- it's usually $100,000 or more -- by going to nolgha.com. That's n-o-l-g-h- a.com.
WILLIS: Great information, Walter. Let's get to the next question. "I bought my house nine months ago with a 7.5 percent APR loan and a credit score over 750. What can under the Obama plan I do to reduce my mortgage payments down from $1,900 a month. The price of the house was $230,000, and my wife and I put down $30,000."
Doug, what do you make of this?
DOUG FLYNN, FOUNDER, FLYNN ZITO CAPITAL MANAGEMENT: Well, to have a 7.5 percent interest rate from nine months ago is a problem there, I think, whether -- it's probably not the credit, but it's probably an income or an assets problem, which is why that rate is so high.
What you need to do is, it sounds to me like he has a 15-year mortgage. Because that's the reason those payments are so high. So, the first thing I would look at is maybe looking at a 30-year mortgage if you're having trouble making those payments. That would reduce the payment by about $800 a month at the current rate, so that might be the right way to go for him.
WILLIS: That's a great way to start. All right, guys, thanks for your help today. "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: You can watch Gerri Willis on "YOUR BOTTOM LINE" every Saturday morning at 9:30 a.m. Eastern and on HLN every Saturday and Sunday at 3:30 Eastern Time.
A Bush administration holdover on the congressional hot seat. Defense Secretary Robert Gates answers his critics.
(COMMERCIAL BREAK)
COLLINS: Former Bush administration official Karl Rove being questioned in Washington today. Sources tell CNN Rove will be asked about the firings of U.S. attorneys when President Bush was in office. A Connecticut prosecutor is looking into whether any laws were broken. Rove's attorney has said his client will cooperate fully with the investigation.
Defense Secretary Robert Gates known for running a tight ship. The Bush administration holdover came to the Obama team with high praise from Democrats and Republicans. Now, he's telling congressional dissenters that he's working to, quote, "get it right." Here now is CNN Pentagon correspondent Barbara Starr.
(BEGIN VIDEOTAPE)
BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): Capitol Hill, for the first time, signs of dissent. From Republicans who say Defense Secretary Robert Gates tried to keep his staff from telling Congress details of the $534 billion Pentagon budget.
REP. JOHN MCHUGH (R), NEW YORK: You mentioned the nondisclosure statements that some call a gag order that kept this Congress from doing its job. And that is what worries me.
STARR: Some in Congress worried favorite weapons programs are getting cut without their input.
SEN. SAXBY CHAMBLISS (R), GEORGIA: You and your staff made many of these budget decisions yourselves, and very few if any people in the services knew what your decisions were until you announced them. STARR: Chambliss wants to reverse Gates's plan to stop F-22 fighter production. Gates says it's time to dump big weapons that aren't being used in the current wars. Congress is being lobbied by contractors who say thousands of defense jobs will be lost.
Gates didn't hide his irritation when questioned about canceling much of the Army's future combat system.
ROBERT GATES, U.S. SECRETARY OF DEFENSE: I couldn't agree more that vehicle modernization is a high priority, the Army's highest priority. And I totally support it. But we've got to get it right if we're going to spend $150 billion on it.
STARR: When Bob Gates replaced Donald Rumsfeld in December 2006, he was portrayed as a calm leader who could also win the war in Iraq. But once again, tough times in the war zone. This time, it's Afghanistan.
GATES: From a military perspective, we can and must do better.
STARR: He fired the commander he put into place less than a year ago.
GATES: I've asked for the resignation of General David McKiernan.
STARR: But two days later, he tried to say it was anything but a firing.
GATES: I view what has happened with General McKiernan as an accelerated change of command.
STARR: McKiernan isn't the first senior official who found his career ending early in the Gates-run Pentagon. Uniformed and civilian alike have been shown the door.
(on camera): But make no mistake, close aides to Gates say he feels fully confident to fire more people and take on Congress if that's what it takes to get what he wants.
Barbara Starr, CNN, the Pentagon.
(END VIDEOTAPE)
COLLINS: A peek into the future and under the hood. Electric cars will look like nothing you've ever seen before. We'll check it out.
(COMMERCIAL BREAK)
COLLINS: It won't be long before electric cars hit the market in full force. And when they do, they may look a lot different than what we're used to seeing on the road right now.
CNNmoney.com's Poppy Harlow takes a look at some of these changes. Poppy, I saw something driving down the road the other day. I have no idea what that thing was.
POPPY HARLOW, CNNMONEY.COM: Heidi, we're seeing all of these...
COLLINS: It was about as big as the guy. I mean, that was it.
HARLOW: ... these odd new electric hybrid cars, natural gas cars. The biggest change that we're going to see on the road is the traditional combustion engine. It's going to come out. It's going to be replaced by these batteries.
We talked to some designers at GM, at Ford. It opens up all these possibilities because you remove the gas engine and all the plumbing, as they call it, that's around it. You get more space for the interior.
The biggest challenge, the designers tell us, is making them more aerodynamic, more rounded. What we want to show you here is a look at some different models. What you see there is the Toyota FTEV. Also, there's the Tesla Motors model. You've heard about that. Also -- that's right there, and also there is the Chevy Volt.
Now, the Ford designer told us they've been looking at animals for inspiration, like fish, Heidi...
COLLINS: Really?
HARLOW: ... yes, to model the cars after.
COLLINS: Like fish?
HARLOW: Like fish. But they said...
COLLINS: They're not going to go in water, are they?
HARLOW: No, they are not. But there are cars that can go in water. Not these. But they said, we don't...
COLLINS: That's a different segment.
HARLOW: That's a different segment. Good idea for next week. But they don't want to make them too futuristic, Heidi. They don't want Jetson cars.
What they told us in a quote here, "Trucks will still look like a truck. A Mustang will still look like a Mustang," Heidi. Other changes, we're going to see more space inside. The driver can move up because you don't have that big engine, so you can get a better view of the road. That's an upside here.
The body of the car can be a little bit smaller, less bulky. And they also talked about safety, Heidi, because the weight can be distributed more evenly, and these cars won't be so heavy in the front -- Heidi.
COLLINS: Yes. All right. Well, we'll be watching the development of all of these as time goes on. Our "Energy Fix" from Poppy Harlow today. Poppy, thank you.
HARLOW: You're welcome.
COLLINS: I'm Heidi Collins. Thanks for watching, everybody. Up next now, the auto industry crash, two big announcements in two days. Thousands of car dealerships closing. We have reaction from the people it affects the most, right here in the NEWSROOM, coming up now with Tony Harris.
