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Stimulus Package Progress Report; Obama Touts New Optimism on the Economy; GM'S New Deal with Bondholders; Baghdad's Thieves Market
Aired May 28, 2009 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: Good morning, everybody. A busy day right here in the NEWSROOM. Let's take a look now.
Tensions raised in the Korean peninsula as the North says it's preparing for a U.S.-led attack.
And students from a Maryland school are stuck in China. They say swine flu fears prompted a quarantine there. We'll tell you about that.
And also from knock-off jeans to stolen weapons. You can get just about anything you want at the thieves' market.
It is Thursday, May 28th. I'm Heidi Collins. You are in the CNN NEWSROOM.
The nuclear defiance of North Korea. Tensions are on the rise this morning. Right now, U.S. and South Korean troops are at their highest alert level in three years. North Korea says it's preparing for an American-led attack.
On the diplomatic front, the United Nations is considering more sanctions against the North after this week's apparent nuclear tests and missile launches.
Let's get the very latest now. CNN's Barbara Starr is at the Pentagon for us this morning.
So Barbara, what do we know about troop readiness in the region?
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, good morning to you, Heidi.
CNN has been told that U.S. troops in the South Korean peninsula certainly are at a higher state of awareness, possible higher state of readiness today. What does that mean? It means being very aware of what the level of tensions are. Troops and equipment possibly ready to go if, in the unlikely case, they are needed.
About that North Korean statement, a U.S.-led attack, that is not what is in the works according to all U.S. officials.
COLLINS: Right.
STARR: The U.S. wants to see this handled in the diplomatic arena. You are seeing a lot of North Korean rhetoric and a lot of it really does have to be put into context. U.S. official say that the North Koreans are looking for global attention on this matter.
But there are very serious concerns about North Korea's nuclear program. U.S. spy satellites have seen activity at that nuclear site in Yongbyon. U.S. intelligence officials trying to determine what the activity means, whether it means they are about to restart that reprocessing plant.
We spoke to an official, someone, an expert who had been inside.
(BEGIN VIDEO CLIP)
EVELYN FARKAS, AMERICAN SECURITY PROJECT: We didn't see any evidence of things having been crushed or demolished, if you will, but things had been disabled and that's the term they used and I think it's an accurate term.
(END VIDEO CLIP)
STARR: Disabled. That's the key word. And that means there are things inside that Yongbyon plant that could be put back together and the general assessment by the U.S. government is that if North Korea is trying to get back into the business of reprocessing, that could come within months, not years. It's a pretty serious concern. Heidi?
COLLINS: Absolutely. All right. Barbara Starr keeping us updated from the Pentagon this morning. Thank you, Barbara.
Secretary of State Hillary Clinton lashing out at what she calls belligerent actions by North Korea on the heels of its apparent nuclear test. North Korea also reportedly launched at least five short-range missiles.
There are also troubling questions over an idled nuclear facility that Barbara was just mentioning. There are reports that satellite images may have detected signs of new activity. Those claims are unconfirmed, but highlight the rising tensions stirred by the communist nation.
(BEGIN VIDEO CLIP)
HILLARY CLINTON, SECRETARY OF STATE: It has ignored the international community. It has abrogated the obligations it entered into through the six-party talks. And it continues to act in a provocative and belligerent manner towards its neighbors. There are consequences to such action.
(END VIDEO CLIP)
COLLINS: Secretary Clinton did not say what those consequences could be. The U.S. has been pushing for new sanctions by the United Nations.
President Barack Obama is heading back to the East Coast today. Air Force One scheduled to leave California next hour. On the agenda when he gets back, Middle East peace and a meeting with Palestinian president Mahmoud Abbas. CNN White House Suzanne Malveaux is joining us now with more on this.
So, Suzanne, what can you tell us about the president's meeting later today with Abbas?
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: You know, Heidi, this is really just one of four critical meetings with the leaders of the region. Obviously, the president is trying to emphasize that Middle East peace is a priority for his administration. It all began back in April. That's when he first met with Jordan's leader King Abdullah when he laid out this new plan, a new U.S. strategy.
It was just last week, we saw him with Israeli's prime minister, Benjamin Netanyahu, sitting side-by-side. And then he is going to be making his case, Heidi. He's going to be going overseas next week. That is where he's going to be in Saudi Arabia.
King Abdullah and they have a plan of their own that they are trying to push. He's also going to be in Egypt meeting with Hosni Mubarak, the president there.
That is where the administration has billed and will be giving that major speech to the Muslim world. It was something that was supposed to happen in the first 100 days, slipped a little bit, but, obviously, he's going to have a world stage and he's going to be talking about turning the corner here, trying to bring Israelis and Palestinians together.
There are some real tough sticking points here, Heidi, as you know. One of them is the fact that Jewish settlements. The president, President Obama, we've heard from Hillary Clinton, secretary of state, as well as Abbas, all of them saying to halt those settlements in the West Bank, that that is not helpful. Israeli Prime Minister Netanyahu not necessarily on board, not agreeing with that.
COLLINS: Right.
MALVEAUX: And then the other thing that you have is this Saudi plan. And that's why it's going to be so important next week when he visits Saudi Arabia. They have this idea that Israel should give back land that was seized 40 years ago back to the Palestinians.
There has been no sense that that is going to move at all. That is another very big sticking point. He has his work cut out for him, Heidi.
COLLINS: Yes, yes, absolutely. All right. We'll be watching those meetings, obviously. I want to give you a little bit more about what's happening in the Middle East and how it will be at the top of the president's agenda next week as well.
President Obama is scheduled to be in Saudi Arabia as you just heard next Wednesday, June 3rd. The next day, he will be talking about relations between the U.S. and the Muslim world during a major speech in Cairo, Egypt.
On June 5th, he has a plan to stop in Germany to see the World War II Buchenwald concentration camp near Dresden. June 6th, the president is scheduled to take part in ceremonies marking the 65th anniversary of the D-Day invasion at Normandy.
Explosions today near an area of intense fighting of Pakistani troops and the Taliban. The blast ripped through a market in Peshawar, the capital of Pakistan's northwest frontier province. At least two are dead, dozens are injured.
CNN's Reza Sayah is joining us now live from Islamabad with more on what has happened.
Reza, give us the latest.
REZA SAYAH, CNN CORRESPONDENT: Heidi, we're getting all sorts of indications that Pakistan militants are picking up their attacks, getting more aggressive, targeting government officials and now civilians.
The latest attack coming about an hour ago, targeting one of the busiest, oldest markets in the city of Peshawar. According to police officials we had back-to-back explosions in this market. The police official says there's a gun battle going on right now with about seven terrorists, he says, on top of the roof of one of these strip shops.
And then...
COLLINS: Reza, it's -- forgive the interruption, but...
SAYAH: ... below a...
COLLINS: If you cab hear me, Reza, is that what we are hearing in the background right now, is this gun battle? Because we're actually hearing what I feel like is shots behind you or no?
SAYAH: No.
COLLINS: OK.
SAYAH: No. Heidi, those are not gunshots. We're a ways away from the scene of the shooting. But let's go ahead and recap what's happening. We have back-to-back explosions in the city of Peshawar but it seems like, from what police officials are telling us, a gun battle is going on after these explosions that took place about an hour ago.
Two people have been killed, according to police officials, more than 70 people have injured. Let's put this in perspective to you where this is happening. Peshawar is the capital city of northwest frontier province, just south of the Swat region where Pakistani security forces have been engaged in a month-long battle with the Taliban.
And yesterday, the Pakistani interior minister said that Taliban leader Baitullah Mehsud did indeed say that if that offensive continues, they will strike larger cities, they will target government buildings and you see more and more of these attacks.
This one in Peshawar. Yesterday, of course, you had attack in Lahore targeting an emergency rescue response headquarters. Heidi?
COLLINS: All right. Very good. I wanted to ask you about that, Reza, because we're definitely hearing something coming over the audio there and I wanted to make sure that everyone understood what exactly is going on.
So Reza Sayah, thanks so much for the update. Coming to us live from Islamabad. We will stay on top of that story as well this morning.
In some ways, it is a kind of death watch for an American icon. Hope seems to have run out for General Motors. The company could file for bankruptcy any time now. We want to get the very latest on this.
Christine Romans, part of the CNN money team, is joining us now from New York this morning.
So, Christine, one year ago, a GM bankruptcy was nearly unthinkable and now it seems like there is really no other way.
CHRISTINE ROMANS, CNN CORRESPONDENT: That's absolutely right, Heidi. And I mean it was so unthinkable that, you know, executives at this company didn't like to talk about it or say the word bankruptcy in public because, frankly, it was something that they wanted to avoid at all costs.
They are worried about the hit on the GM brand, what it would mean for customers and consumer confidence, and also what it would mean for its employees and the rest of the suppliers and dealers who work with this industry.
So it's something, though, that we think is going to be happening and it could be happening, quite frankly, any day. It will likely mean restructuring, not liquidation. That's what chapter 11 means. It means protection from your creditors. So keep that in mind. They're not facing a liquidation here. They're talking about trying to reorganize under the protection of the bankruptcy code.
It would likely be more job losses. Quite frankly the Canadian and the United Auto Workers have agreed that they will have to take some deep cuts. It will mean fewer brands most likely. Look, Hummer is for sale, Saab is for sale, Saturn goes away, Pontiac is done.
A lot of changes coming here and it will likely mean more of a U.S. taxpayer investment. Heidi, a lot more. By some estimates up to $50 billion more and potentially losing the overseas operations. There's a lot going on right now with Opel. The German government trying to figure out just what this company was going to look like on the other side.
COLLINS: Yes. Absolutely. So what about suppliers and dealers? I mean it's going to be very difficult for them, too, right?
ROMANS: It is. Visteon, it's the 282nd Fortune 500 company, number 282 in the Fortune 500 list. That company filed for bankruptcy protection earlier today. This company -- it's -- most of its business actually goes to Ford. It is a big supplier to Ford and F- 150 pickup has instrument panels and gadgetry from this company.
It's a company that makes a lot of things that you see and feel and hear in the inside of a car or a truck. Visteon has 31,000 employees. It has just filed for bankruptcy protection itself.
So it just shows you that what's happening with Chrysler, which is moving quickly through the bankruptcy process, GM which is on the brink of it, and Ford which has stayed out of it, all of them are being affected by this.
COLLINS: Yes. All right. Well, we're staying on top of it. Appreciate it. Christine Romans, thanks so much.
ROMANS: You're welcome.
COLLINS: And tomorrow night, want to let you know, CNN's Ali Velshi and Christine Romans explore the rise and fall of the American auto industry and where it might go from here because that is the question. "How the Wheels Came Off: The Rise and Fall of the American Auto Industry." CNN Friday night at 8:00 p.m. Eastern only right here on CNN.
A powerful earthquake rattled Central America, sending people running into the streets and sparking fears of a possible tsunami.
(COMMERCIAL BREAK)
COLLINS: A major earthquake collapses homes in Honduras this morning. Details have been hard to come by so far in remote parts of the country. The Associated Press quotes an official who says one person is dead.
Now this is some of the new video just coming in to us. You can see some of the damage to the roads and bridges. We've also seen badly damaged homes. A tsunami warning for the area was lifted just a short time ago but we'll bring you more details on this developing story just as soon as we get them.
Reynolds Wolf, meanwhile, standing by in the Severe Weather Center to talk a little bit more about the stormy spring that we have been experiencing. Seems like almost everywhere.
(WEATHER REPORT)
COLLINS: Yes, no question. All right, Reynolds. We'll check back later on. Thank you.
WOLF: You bet.
COLLINS: School trip comes to a stop on the other side of the world. Maryland students quarantined in China. Our Dr. Sanjay Gupta has the story.
(COMMERCIAL BREAK)
COLLINS: In health news today the death toll from the H1N1 or swine flu virus is rising in the United States. The latest victims are in Arizona and Illinois, but so far, those cases are not yet included in the official tally by the National Centers for Disease Control and Prevention. The CDC currently puts the U.S. death toll at 11.
The World Health Organization counts 14,557 cases of swine flu now, 96 of them fatal. The outbreak affects 48 countries.
School trip ruined by swine flu fears. Twenty-one students and three teachers are stuck in their hotel rooms in China because of a quarantine. Someone on their plane was suspected of having H1N1 but wound up not having it.
Our chief medical correspondent Dr. Sanjay Gupta is joining us now with more on this.
So, Sanjay, why quarantine these kids? I mean especially now that they know that that person on the plane didn't have H1N1?
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Yes, it's a good question. I mean the chance of any of these students and these teachers having, given that the person that they were worried about doesn't it, is slim to none, no question.
The way that this works typically, Heidi, the way the thinking goes is that if you're on a plane or if you're in close proximity to somebody who is positive for H1N1, close proximity meeting about six feet, it can spread through the air.
This is a virus that can spread through respiration or respiratory droplets. That's sort of the concern. But to your point, Heidi, typically people who have been exposed, they have an incubation period of one to four days.
COLLINS: Right.
GUPTA: If they haven't developed any symptoms within four days, they're usually clear. And it's been five days and the person they were concerned about doesn't have it, so you're right. This is a little bit difficult to piece together.
COLLINS: Yes. So what's the deal? Is China overreacting?
GUPTA: Well, you know, I think it's difficult to say whether they're overreacting or not. You know, certainly if that person had come back positive, then this would seem a lot more in line with how to handle things.
COLLINS: Well, sure. Yes.
GUPTA: But now that he's negative. You know there was an incubation period, they're probably erring on the side of caution.
You know, Heidi, I covered SARS as well as you did back in 2003 and you remember at that point, an infectious disease was spreading throughout the country in China. Thousands of people got it and hundreds of people died. So I think they're really erring on the side of caution here.
COLLINS: Yes. It sounds like it. All right. Well, we'll keep our eye on that.
Dr. Sanjay Gupta, our chief medical correspondent, thank you.
GUPTA: Thanks, Heidi.
COLLINS: And also want to let you know, we have asked the Chinese government for a comment on this story. They have not responded. Today is a national holiday in China.
Standing down at Ft. Campbell. Commanders are setting aside routine duties at the base for three days in an effort to deal with the troubling number of suicides at the home of the 101st Airborne. Eleven soldiers have killed themselves this year.
The commander addressed his troops telling them to stay tough.
(BEGIN VIDEO CLIP)
BRIG. GEN. STEVE TOWNSEND, FT. CAMPBELL COMMANDER: Suicide on Ft. Campbell is bad and it's got to stop now. No matter how tough your problems look right now, they'll be better tomorrow.
Believe it. Trust me. You don't have to believe it. Just trust me. They'll be better tomorrow. Don't take away your tomorrow. Last, remember this. Screaming eagles never quit. They stay in the fight until they win.
(END VIDEO CLIP)
COLLINS: Coming up next hour, we will talk to one military widow whose husband took his own life. She is now reaching out to help other military families in need.
The stimulus package, hundreds of billions of dollars of your money. Is the government getting the most bang for your buck?
(COMMERCIAL BREAK)
ANNOUNCER: Live in the CNN NEWSROOM, Heidi Collins.
COLLINS: Just a couple of minutes away from the opening bell. You see all of the activity there on the floor of the New York Stock Exchange. In fact, on Tuesday, the Dow notched a triple-digit gain. Yesterday? It was a triple-digit loss.
Seems like that's kind of how things have been going. But for a look at what more we can expect today, let's go to Susan Lisovicz at the NYSC for more.
So what's the deal? We have the positive, the negative and then we end out at a big fat zero, huh?
SUSAN LISOVICZ, CNN CORRESPONDENT: Heidi, I think we need your best friend to ring the closing bell again.
COLLINS: I know. Yes.
LISOVICZ: She rang it Tuesday, we had a big rally. And...
(CROSSTALK)
LISOVICZ: Just about everything that we gained on Tuesday. But you know who said the road to recovery is smooth, Heidi? You know, yes, there are new signs that the economy is stabilizing but sometimes it's like a step forward and then a step back.
COLLINS: Yes.
LISOVICZ: Case in point, jobless claims, they dipped to 623,000 last week. That's a sign that employers are cutting fewer jobs but that level is huge. And the number of people continuing to apply for unemployment rose to another record high, nearly 6.8 million people now showing it's taking an awfully long time to find a job.
But people are spending money on big ticket items. Durable goods.
COLLINS: Yes.
LISOVICZ: Orders jumping nearly 2 percent in April. Those are much better than expected but here is that step backward. March was revised down to a decline of about the same amount.
OK. Let's go to OPEC now. Because the economy appears to be stabilizing, OPEC decided to keep oil production steady. A move that supports oil prices, which, right now, around $63 a barrel. Well, that's a lot better than $150 a barrel but compared to 30 bucks, which it was a few months ago.
Let's go to the auto sector. Visteon, Ford's biggest part supplier, has filed for bankruptcy. The company has more than 30,000 workers. It puts pressure on Ford. The only automaker of the big three not to require assistance from Uncle Sam.
So the toy sector, two major toy companies are teaming up. Toys "R" Us buying FAO Schwartz, the oldest U.S. toy retailer. Upscale FAO has struggled through several bankruptcies and competition from discounters.
There is the opening bell. And let's talk about something close to home. Time Warner, the parent of CNN...
COLLINS: Yes, how about that? LISOVICZ: .... is spinning off its Internet unit, AOL, with a marriage born in the dotcom boom and like so many things in the dotcom boom it came undone...
COLLINS: Yep.
LISOVICZ: ... in the dotcom aftermath. We'll leave it at that.
The Dow right now up 28 points or a third of a percent. The NASDAQ up three quarters of a percent. Bring your best friend back, maybe it will hold, Heidi.
COLLINS: OK. We'll work on that. All right, Susan, appreciate it. We'll check back a little later on.
LISOVICZ: See you later.
COLLINS: Time now for a reality check on the stimulus package. Are you getting your money's worth? President Obama said the $787 billion plan would save existing jobs and create new ones. He even showcased one police department to prove it.
Well, today there are new doubts about the long-term benefits.
CNN's Elaine Quijano explains.
(BEGIN VIDEOTAPE)
ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT (voice-over): After touring a massive 140-acre array of solar panels at Nellis Air Force Base in Nevada, President Obama touted 100 days of the economic recovery program and its investments in energy and jobs.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: In these last few months, the American Recovery and Reinvestment Act has saved or created nearly 150,000 jobs. The jobs of teachers and police officers and nurses, who have not been laid off as a consequence of this recovery act.
QUIJANO: But some police officers in Columbus, Ohio, whose jobs the president said were saved by the stimulus, could be laid off after all. The police chief says when the stimulus money runs out this year, he won't have the funds to keep those officers, unless voters approve an income tax increase this summer.
CHIEF WALTER DISTELZWEIG, COLUMBUS POLICE: You know, the old acronym, we do more with less? We are going to do less with less.
QUIJANO: The job losses would be especially biting, considering the president went to Columbus to highlight the graduation of 25 police recruits.
OBAMA: For those who still doubt the wisdom of our recovery plan, I ask them to come to Ohio and meet the 25 men and women who will soon be protecting the streets of Columbus because we passed this plan. QUIJANO (on camera): As for all those shovel-ready highway projects, the administration touted to help sell the plan, the most recent report by the Government Accountability Office, said most states had yet to spend significant amounts of transportation funding.
Elaine Quijano, CNN, Washington.
(END VIDEOTAPE)
COLLINS: President Obama says the stimulus bill has played a part in getting our economy headed in the right direction. Last night, he spoke at a Democratic fund-raiser in California. He said the country has, quote, "stepped back from the brink."
(BEGIN VIDEO CLIP)
OBAMA: There's no doubt that times are still tough. By no means are we out of the woods just yet. But from where we stand, for the first time, we're beginning to see glimmers of hope. And beyond that, way off in the distance, we can see a vision of an America's future that is far different than our troubled economic past.
(END VIDEO CLIP)
COLLINS: At the top of the hour, we're going to be looking at some of the newest measures of the economy, and see whether the numbers really do suggest a recovery is taking hold.
Miles upon miles of death and devastation. You are looking at what's left in villages in southwestern Bangladesh after Monday's cyclone. Nearly 200 people are reported dead and in neighboring India as well. Hundreds of thousands of people are homeless. Relief agencies are struggling now to bring in supplies.
CNN meteorologist Reynolds Wolf standing by to talk a little bit more about this and also flooding in the United States as well.
(WEATHER REPORT)
COLLINS: Yes. Actually, stick around, Reynolds, because I want to show you this video. I think you've seen a little bit of it. But it's pretty cool. We were talking about it yesterday.
REYNOLDS WOLF, CNN METEOROLOGIST: Oh, sure.
COLLINS: The plan to sink the General Hoyt S. Vandenberg off the coast of Key West.
Take a look at this now.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: 4-3-2-1. Fire!
UNIDENTIFIED MALE: Whoo!
(END VIDEO CLIP)
COLLINS: All right. So that blast started the sinking. Now watch as this thing goes down. It's pretty unbelievable.
523-foot World War II ship now becomes the world's second largest artificially sunk reef.
WOLF: That is really cool.
COLLINS: Isn't it?
WOLF: That's an amazing thing to see. You know, that is such a great area for diving, and now, with this artificial reef, you're going to see all kinds of life that will, you know, form on that ship, that artificial reef, it's an amazing thing to see.
And isn't it true, Heidi, that there are few things in life that are as beautiful to watch as a building demolition or a sinking boat.
COLLINS: I guess, but in a sick way.
WOLF: I mean, it really is an amazing thing to see. Yes. I mean, you know, it's done for a good purpose, of course, but still kind of mind boggling.
COLLINS: Yes. They're saying that it took less than two minutes for the ship to go under completely.
(CROSSTALK)
WOLF: But how weird is this? Look at this vantage point.
These are cameras that are actually on board the ship as the ship drops below the waves, and there it goes.
COLLINS: Yes, I think they had three of them on board or something. Look at that.
WOLF: Wow.
COLLINS: So apparently they also had to go down and make sure that all of the explosives went off, of course, so that divers could go down and be safe. So they are doing that and, apparently, the site is not open quite yet to the public because, you know, they want to make sure it's good to go first.
WOLF: Always a good time.
COLLINS: Yes.
WOLF: I like that stuff.
COLLINS: All right, Reynolds. Thanks so much.
WOLF: You bet.
COLLINS: And, now, the guy who brings you "Dancing with the Stars" is bringing you "Spelling Stars," tonight, huh?
Tom Bergeron, we will talk to him in just a moment.
(BEGIN VIDEOTAPE)
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT (voice-over): It's 5:00 in the morning and Margie Orrick is already exercising. An avid rower who's now in her 50s, Margie says her passion for exercise has made a difference as she's gotten older.
MARGIE ORRICK, AVID ROWER: And I can lift easily, things that I couldn't lift, and my body feels better. It gives me a lot of energy afterwards.
GUPTA: When it comes to exercise and aging, there is a catch-22. Exercise is crucial to keeping your bones and muscles healthy. However, too much impact can hurt you. So as you get older, it's a matter of finding that happy medium.
According to the American Academy of Orthopedic Surgeons, as we age, our bones change. Around the age of 30, bones begin to loose minerals like calcium making them more fragile.
As we get into our 40s, we begin to lose actual bone tissue. But exercise can help regenerate bone tissue and minerals slowing the onset of osteoporosis and arthritis.
DR. DAVID JOHNSON, WASHINGTON HOSPITAL CENTER: It's important in those that have arthritis and those who are trying to prevent arthritis, to cross-train, to get involved in a number of other sports so that if your knees are starting to hurt or you sprain your ankle, then you can cross-train.
GUPTA: Also our muscles begin to shrink and the number of muscle fibers decreases. Make sure to keep them limber.
JOHNSON: So it's important even more so in the 30s and 40s and 50s and beyond to do stretching before you exercise and stretching after you exercise, to prevent injuries.
GUPTA: Orthopedists say it's never too late to start exercising. Studies have shown that people even 50 or older who have never been active can improve their bones and muscles by taking on moderate exercise like walking, light weight-lifting and even rowing, just ask Margie.
For 30, 40, 50, I'm Dr. Sanjay Gupta.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
UNIDENTIFIED HOST: Numnah. Numnah.
(LAUGHTER)
UNIDENTIFIED MALE: Rum nuts? What?
UNIDENTIFIED BOY: Numb nut?
(LAUGHTER)
UNIDENTIFIED MALE: Numnah is a felt or sheepskin pad placed between a horse's back and the saddle to prevent chafing. Can I say it, and then you say it?
UNIDENTIFIED BOY: Yes.
UNIDENTIFIED MALE: Numnah.
UNIDENTIFIED BOY: Oh, numnah
(LAUGHTER)
(END VIDEO CLIP)
COLLINS: I love it. Yes, so that clip shows why contestants need the definition, right? Our nation's best and brightest are back at it. Forty-one kids remain in their quest to be crowned National Spelling Bee champ.
You know Tom Bergeron from "Dancing with the Stars," but tonight he is hosting "The Spelling Stars" in Washington. And he joins us now.
Tom also has a new book out that goes along with his gigs, because he's got a lot of them. It's called "I'm Hosting as Fast as I Can!" And it's a good one, too.
So, Tom, hilarious last year. I guess that was Sameer Mishra.
TOM BERGERON, HOST, THE 2009 SCRIPPS NATIONAL SPELLING BEE: Yes.
COLLINS: He had to deal with numnah as the word. 293 competitors this time around, though, which makes it the biggest, right?
BERGERON: Yes.
COLLINS: Tell us about it.
BERGERON: It's the biggest, but now it's down to 41. The semifinals begin in about, I think about 15 minutes from now, actually. And -- but it started at 293.
And you got to remember that's from a pool, an original pool when you count all of the spelling bees around the country of 11 million.
COLLINS: Boy, oh, boy.
BERGERON: So these kids are the brightest of the bright, and usually make me feel like a numb nut when I'm sitting there trying to keep up with them.
COLLINS: No. So talk a little bit about that, though. Because I imagine there are some challenges when you're dealing with kids, and a lot of kids, of course, have no television experience. And I bet, you know, they are nervous on top of competing for this big prize.
BERGERON: Well, for me, what I found is how many of these kids love America's funniest videos, because it's like a slapstick relief from all of the studying that they do.
COLLINS: Yes.
BERGERON: So I've really enjoyed meeting and getting to know some of the kids and their families and such. But I think when it gets down to the actual bee, I think they're so hyper focused on the word that they get, on getting as much information from the person -- Dr. Bailey, the pronouncer, as they call him, that they forget about the television coverage. I think they've got a pretty laser-like focus on this thing.
COLLINS: Yes, well, they would have to, obviously, to do some of the words that they do.
Hey, speaking of that hyper-focus.
BERGERON: Yes?
COLLINS: You know that we've picked a couple of words off of the Scripps National Spelling Bee's web page, right?
BERGERON: So I heard. Yes.
COLLINS: So we want to give you a quiz, because, you know, you've been around this a while, we figure you got at all good to go...
BERGERON: Oh yes, go ahead.
COLLINS: How about asylum? How would you spell that?
BERGERON: Asylum?
COLLINS: Yes.
BERGERON: A-s-y-l-u-m.
COLLINS: Oh, do we have a ding, ding, ding?
Correct.
BERGERON: Now, wait, the ding is if you get it wrong...
COLLINS: Oh, that's right. Sorry.
BERGERON: So don't ding me.
COLLINS: No, we have the fake applause, instead.
BERGERON: All right. That's fine.
COLLINS: OK, ready? Here's the next one -- Civitas.
BERGERON: What?
COLLINS: Civitas.
BERGERON: Kiwita?
COLLINS: Civitas.
BERGERON: Can we talk?
COLLINS: Yes. And this isn't like a fruitcake or anything.
Kiwita.
BERGERON: All right. Now, see, you know, if I was in the competition, can you give me -- can you use it in a sentence?
COLLINS: No. But I can give you a definition.
BERGERON: All right.
COLLINS: A body of people constituting a politically organized community. It is a Latin word.
BERGERON: So -- and I'm hearing it as Kiwit talk?
COLLINS: Yes -- no, civitas.
BERGERON: Kiwita.
COLLINS: Because you're so solid.
BERGERON: Well, it sounds like, it sounds like --
COLLINS: You have no idea.
BERGERON: No, it's a New Zealand conversational technique Kiwitalk. K-i-w-i-t-a-l-k.
COLLINS: OK. Yes, close.
No. C-i-v-i-t-a-s.
BERGERON: I think you made that up, frankly.
COLLINS: No, no, no. No, it's a noun. I promise.
All right. Ready for the next one?
BERGERON: Oh, there's more? Oh, joy.
COLLINS: This is the best one by far. I think you'll know it.
BERGERON: Yes.
COLLINS: Onychorrhexis.
BERGERON: Anacurexis.
COLLINS: Yes.
BERGERON: I actually was treated for that.
COLLINS: I know you were.
BERGERON: Anacurexis was a Russian heroin in a Tolstoy novel --
COLLINS: Yes?
BERGERON: Or is that Karin (ph)?
COLLINS: Yes, something like that.
BERGERON: Yes, I have no clue.
COLLINS: You don't want to guess how to spell that one, huh?
BERGERON: I want to phone a friend.
COLLINS: OK. No, we don't have that on this show.
BERGERON: OK.
COLLINS: All right. So let's put the spelling up there for you.
BERGERON: I would have -- that's what I thought.
COLLINS: Yes. Right. Right.
BERGERON: Yes.
COLLINS: O-n-y-c-h-o-r-r-h-e-x-i-s...
BERGERON: Can we stop this?
COLLINS: Yes, we're done. Just so people know what that was. Longitudinal ridging and splitting of the finger and toenails.
BERGERON: Longitudinal ridging?
COLLINS: That's an important word to know.
BERGERON: OK.
COLLINS: Yes.
Hey, you're going to have a great, great show tonight. A lot of people are going to be watching. BERGERON: I think so.
COLLINS: It's such a huge event, and we get so proud of those kids when they are able to rattle off those letters.
The other thing, though, you know, we have to talk about DWTS.
BERGERON: Absolutely.
COLLINS: "Dancing With the Stars" for those -- look at that!
BERGERON: Here's where's Heidi goes rouge.
COLLINS: Perfect cue. No, no, no.
Hey, what's your favorite gig? I mean, you've been doing all of this stuff for a while now. You've got the "America's Funniest Videos," you've got "Dancing with the Stars," you've got the spelling bee.
BERGERON: Right.
COLLINS: What do you think?
BERGERON: I like live. I really do. I mean, "America's Funniest Videos," we've got that -- we call that the annuity of the house. And it's like a finely oiled machine. But for me, to work on a live show is a real gift. And dancing which harkens back to old style variety and has the reality element variety, obviously, and is happening right now in the moment, no second take, that's what I really love.
COLLINS: Yes. Well, you do a great job at it.
BERGERON: Thank you.
COLLINS: And it's been a pleasure talking with you very much.
BERGERON: Thanks, Heidi.
COLLINS: I'll give you my email and phone number later for, you know, the slot for the next season coming up on "Dancing with the Stars."
Yes. OK, thanks so much, Tom. We'll talk with you later.
BERGERON: You bet. Take care, Heidi.
COLLINS: Meanwhile, twittering, are you doing it? Or are you still trying to figure out how it all works?
Our Josh Levs is back with yet another lesson, because, Josh, this was very, very popular yesterday -- our Twitter 101.
JOSH LEVS, CNN CORRESPONDENT: Oh, yes.
(CROSSTALK)
COLLINS: Yes. Twitter 102 now, right?
LEVS: I think we should start a Twitter campaign about what you were just talking about with Tom there.
COLLINS: I agree a hundred percent.
LEVS: All right. We will do that, coming up. We're also going to go through RT, DM, ROFL.
Stick with us. You'll finally understand what everybody is talking about.
(COMMERCIAL BREAK)
COLLINS: Quickly, we want to get directly to our Christine Romans with some information, Christine. Coming in, or at least some activity, I should say regarding GM and its bondholders.
What's going on here now?
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Well, some 11th hour drama in the GM story here, Heidi. At the New York Stock Exchange, the shares of General Motors are halted pending news. And that news comes from a regulatory filing that shows that GM is saying that its bondholder committee has agreed to a new set of circumstances with which to restructure this company.
The shares I'm told right now are starting to trade again, so they have lifted that trading halt on those shares. But, essentially, this is -- this looks like the bondholder committee now supports a debt for equity exchange proposal for this company. A lot of details to sift through here. But what this means, the bondholders as we've been telling you, have balked at the original offer from GM and the government. It looks like a new deal has been struck.
It does not mean that they avoid bankruptcy. There still could be a bankruptcy. But it looks like one of the pieces of this puzzle might actually be working again in the favor of this company and moving forward.
Heidi?
COLLINS: All right. Very good. Well, let us know if we need to come back to you should you learn any more on this front.
ROMANS: Sure.
COLLINS: Christine Romans of our money team. Thanks so much.
So, everybody's talking about it. But what they're saying doesn't always seem to make sense, right? All that twitter lingo flying around. Well, the mystery ends now.
Our Josh Levs gave us Twitter 101 yesterday, and now he's back with the ever popular Twitter 102.
LEVS: Yes. We got a new franchise here, Heidi.
COLLINS: Yes. I'm part of the go, though. I don't know.
LEVS: I know. Seriously, how much can you say about Twitter?
But to be fair, you know what, there are some really cool things to learn about. Let's start off with these terms. Let's just go right to the graphic, because we were going to take a look at this yesterday, and then, you know, got interrupted by actual news.
Take a look here. These are the terms, OK.
Now -- you know what? The letters aren't coming up for some reason. But anyway, retweet there is RT. Any time you hear anybody saying RT, that means retweet, direct message, DM.
It's really simple to understand. Any time you're on Twitter, people are going to start using all these weird acronyms at you. All you got to do is take a look right there at the Web site we're showing you -- tweetison. It will show you everything.
Let's try the next one. See if -- everything shows up right there. These are the terms that you should be able to use. Like, you know, some acronyms there.
COLLINS: That's all right. LOL, laughing out loud.
LEVS: LOL. You can see -- LOL -- oh, it is showing up. Good. It's not on my monitor.
LOL, laughing out loud. Rolling on the floor laughing -- have you heard that one, Heidi? ROFL?
COLLINS: Yes.
LEVS: OK. ROFL means rolling on the floor laughing.
I get a lot of tweets and messages that have that one -- IMHO, In my humble opinion. And the last one you should really know this one, because it's very, very important. And because if someone send this to you, they're actually being nice. They're helping you got. NSFW means it's not safe for work.
So if you get that, what it's saying to you is it's worth taking a look at, but not right then.
COLLINS: Yes, that's --
LEVS: These are the kinds of terms they are going to fly to you a lot. But once you learn, though, you're like -- oh, I get it. You can save time, you can save typing, you can save space. Still have a little fun and twitter.
COLLINS: Yes, I got it. The only one I didn't know there was "not safe for work," because I would never do that type of thing at work.
All right, Josh --
LEVS: But you don't know who's going to send you something. So that's the key. Watch out for that one.
COLLINS: Sure. OK.
All right, Josh. Thank you.
LEVS: Thanks, Heidi.
COLLINS: We do have an awful lot going on this morning. And CNN crews are, of course, working to bring it to you. Let's check in now beginning with Christine Romans on Scandia, New York.
ROMANS: Hi, there, Heidi. We're still following these late developing breaking news about General Motors, couldn't stave off bankruptcy. Will the bondholders accept a new deal? I'll have that for you at the top of the hour.
JOHN ZARRELLA, CNN CORRESPONDENT: Hurricane season begins in just a few days. Do you live in the coastal United States? Do you have a hurricane plan? A new survey coming out this morning says you probably don't. I'll have that story at the top of the hour.
ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: I'm Elizabeth Cohen. The Daniel Hauser case in Minnesota has a lot of parents asking what rights do parents have to dictate the medical care of their children. We'll have that answer at the top of the hour.
COLLINS: All right, guys. Thanks so much for that.
We will also take a look at where the jobs are for all the recent graduates in your family who may be looking for work.
(COMMERCIAL BREAK)
COLLINS: Stolen weapons are on sale along with a lot of other stuff at the Baghdad thieves market. CNN's Cal Perry gives us a tour of the stalls.
(BEGIN VIDEOTAPE)
CAL PERRY, CNN INTERNATIONAL CORRESPONDENT (on camera): Here we are in central Baghdad at the thieves market. The reason they call it that is that it started on the street. People used to say if you have something stolen, you have something lost, where can you find it? You can come here, find it at the thieves market.
Before that under Saddam Hussein, it was really because of the black market that began because of the sanctions that the U.S. had. This is a microcosm of Iraq, because you can find anything here in this market.
Now one of the things that's been of huge concern to U.S. military commanders and Iraqi military commanders is that you can buy Iraqi police uniforms, weapons, knives, you can buy ammunition, Iraqi army helmets, you can buy Iraqi army hats, the insignias of the Iraqi army, of the Iraqi police.
So one of the things that's of huge concern is that people are buying these uniforms, they're putting them on, they're acting like police, they're setting up check points and they are carrying out attacks.
And as we continue through here, you can see as far as you go, they have the actual insignias, patches, ammo belts, pretty much anything you want you can buy, including officer tags.
But more than just, you know, Iraqi army uniforms and security stuff, a lot of young people come here because they can buy cheap clothing. Stuff that you can get off the street. Adidas stuff. A lot of this stuff is fake, obviously. A lot of this bootleg sort of gear, bags, clothes. As I said, you can find absolutely anything in this market.
We'll take you to the other side.
From your cheap jewelry to your stick-on tattoos. These are your fake tattoos, Iraqi -- obviously, the Iraqi flag here, the Iraqi country. We've got football, different dragons, things like that, to the staple of any good black market. Your bootleg movies, including your pornography. Like I said Baghdad's thieves market, a place where you can find absolutely anything.
Cal Perry, CNN, Baghdad.
(END VIDEOTAPE)
COLLINS: Here's some other stories making news around the nation now. Five people are dead after a car and van collided in northeastern Arkansas. Police say the car was driving the wrong way on U.S. 63 yesterday when it slammed into the van. The van was headed to Jonesboro, Arkansas, carrying disabled adults. The drivers of both vehicles were killed. Five other people were hurt.
A Pennsylvania woman who claimed she and her daughter had been kidnapped is in custody for allegedly making false statements. She appears here on an airport surveillance tape yesterday in Philadelphia. The mother and daughter were found at a Disney World resort in Florida. Authorities say Bonny Sweeten withdrew about $12,000 in cash and obtain a co-worker's driver's license to purchased plane tickets to Florida.
Illinois police now say remains found near a river last week are not those of Stacy Peterson. She is the missing fourth wife of former police officer Drew Peterson. Tests show the remains belong to a male. Drew Peterson is currently in jail on charges linked to the death of his third wife. He maintains his innocence in both cases.
