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Time Winding Down for GM's Bankruptcy Decision; Republicans Split on Judge Sonia Sotomayor; A Look into the Stimulus Plan after 100 Days

Aired May 30, 2009 - 11:00   ET

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

BETTY NGUYEN, CNN ANCHOR: It is Saturday, May 30th and you're in the CNN Newsroom, hello everybody I'm Betty Nguyen.

T.J. HOLMES, CNN ANCHOR: And good morning to you all, I'm T.J. Holmes, thank you for being here with us. General Motors, some calling it government motors right about now, but their board of directors is in its second day of meetings on the company's fate. GM expected to file for bankruptcy on Monday. It could take up to 18 months for the court to wade through the mess of debts, other liabilities and unprofitable plants. Meanwhile, the company says it plans to reopen a shuttered factory to build small cars. It's hoping Americans will buy them, especially with the new fuel-economy standards that go into effect in the year 2016.

This week, GM's main union approved dramatic labor cost cuts as well. The move took billions in GM retiree health care cuts off the books. Also the plan, the European carmaker, rather, Opel, which GM does own is getting a bit of a rescue. An Austrian/Canadian company says it will buy that struggling company. You may not know a lot about it, but it is their arm over in Germany -- over in Europe, I should say. So, if GM does file for bankruptcy protection Monday, how would the White House respond? Kate Bolduan at the White House looking for a response. What do we know? Good morning, Kate.

KATE BOLDUAN, CNN CORRESPONDENT: Good morning, T.J.? They are watching this very closely. The time is winding down as the restructuring deadline is approaching for General Motors. The Obama administration all along has this topic of helping out and what to do with General Motors and Chrysler. All along has -- and it's almost become a mantra, whatever road to restructuring these automakers take, the Obama administration says they need to emerge leaner and more competitive on a path to viability when they come out. Well, that could be, as we expect, heading into bankruptcy for General Motors. Chrysler entered into a structured bankruptcy at the end of last month and some say they could be coming out of that shortly. But these are two very different companies with two very different circumstances. And the White House is being very careful in characterizing the state of negotiations in GM's case. Listen here to White House press secretary Robert Gibbs -

(BEGIN VIDEO CLIP)

ROBERT GIBBS, WHITE HOUSE PRESS SECRETARY: I know the president is encouraged that whatever happens at the deadline, the progress that is being made to restructure General Motors and put it on a path, as I've said, to being a viable auto company, we have seen encouraging signs. And what happens in the next few days, the president obviously will certainly watch, and will have something to say about it next week.

(END VIDEO CLIP)

BOLDUAN: Also next week, Obama administration is sending officials out to the Midwest, going to states like Michigan, Indiana, Ohio, Wisconsin, states that are very much affected with GM's situation and GM's struggles. Officials we're told going to be discussing federal efforts to help these communities out. And T.J. we can expect it's possible that next week when these officials head out there, they're going to have to explain exactly what's next for these communities, as GM enters bankruptcy.

HOLMES: All right. Big announcement expected on Monday. Kate Bolduan for us at the White House. Thank you so much.

And coming up, about 15 minutes past the hour, I interview vice president's top economic adviser, Jared Bernstein, he answers critics' concerns about who's getting stimulus money and the future of the big three automakers.

NGUYEN: President Obama is urging the senate to move quickly on the Supreme Court nominee and today he called on republicans to stop dropping rhetorical firebombs. Some have labeled Judge Sonia Sotomayor a racist for a remark in 2001, that a, quote, "Wise Latina judge could make better decisions than a white man." Well, Rush Limbaugh went as far as to compare her to a Ku Klux Klan leader. The president says, sure, Sotomayor should have used different wording, but enough of the nonsense, as he put it, that critics have quoted, "Spewed out."

(BEGIN VIDEO CLIP)

PRESIDENT OBAMA: There are, of course, some in Washington who are attempting to draw old battle lines and playing the usual political games. Pulling a few comments out of context to paint a distorted picture of Judge Sotomayor's record, but I'm confident that these efforts will fail, because Judge Sotomayor's 17-year record on the bench, hundreds of judicial decisions that every American can read for him or herself speak far louder than any attack. Her record makes clear that she is fair, unbiased and dedicated to the rule of law. As a fellow judge on her court, appointed by Ronald Reagan, said recently, "I don't think I go as far as to classify her in one camp or another. I think she just deserves the classification of outstanding judge."

(END VIDEO CLIP)

NGUYEN: Well, Paul Steinhauser is CNN's deputy political director and he joins me now live from Washington. Paul, republicans seem split over just how to attack Sotomayor's nomination. Does this appear to be a battle that is looming as we see this go through?

PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: You do see a split, Betty, among republicans. You mentioned Rush Limbaugh, also Newt Gingrich, some very tough language against Sotomayor and some other conservatives as well. But for the republicans in the senate, you're hearing much more measured comments. In fact, two key senators, John Cornyn of Texas, and Orrin Hatch of Utah, both kind of criticizing Rush Limbaugh and Newt Gingrich. Take a listen to Orrin Hatch, this was with Wolf Blitzer on "The Situation Room."

(BEGIN VIDEO CLIP)

WOLF BLITZER, CNN HOST: Do you agree with Newt Gingrich, the former house speaker, she's a racist?

SEN. ORRIN HATCH, (R) UTAH: No, I don't agree with that. And, frankly, I think it's a little premature and early, because she hasn't had a chance to explain some of these comments that she's made.

(END VIDEO CLIP)

STEINHAUSER: And Orrin Hatch and John Cornyn, the other republican senators, these are the republicans who will actually vote on the confirmation. Newt Gingrich, Rush Limbaugh, obviously, not in power, they don't get to vote. Betty?

NGUYEN: But at the same time, I have to ask you this question, why does the president's choice of this particular nominee kind of put republicans in a bit of a pickle?

STEINHAUSER: It really does. And here's why. The conservative base of the Republican Party, it seems, wants republicans to go after Sotomayor. They're looking for a fight. They like that. They seem to like that tough language from Rush Limbaugh, from Newt Gingrich. But, remember, the republicans if they want to come out of the political wilderness, they need to grab back Latino voters, Hispanic voters, so maybe not a great idea to go too tough against Sotomayor. Take a look at these national exit poll numbers and they really tell the story. In 2004, you can see George W. Bush won 44 percent of the Latino/Hispanic vote according to national exit polls, but that went down to 31 percent in this last election for John McCain. Barack Obama won two-thirds of the Latino and Hispanic vote according to exit polls. So the republicans have a long way to come back. And maybe by attacking Sotomayor, they're not doing themselves any favors in that aspect. Betty?

NGUYEN: We heard today in the president's radio and web address that he really wants this confirmation if it happens to go through very quickly. That maybe a bit of a battle, though, when you look at the calendar. Is it plausible that this can be pushed through quickly?

STEINHAUSER: It's plausible because the democrats obviously have the majority in the senate. But as you mentioned, there is a battle over the calendar, a fight over the timetable. Take a look at this, take a look at July. As you mentioned, the president wants the senate judiciary committee and then the full Senate to confirm Sotomayor by the end of July. Why is that? Take a look at the calendar for August. Guess what, lawmakers are off, they're on recess for just about the whole month.

Republicans are saying, Mr. President, slow down. Take a look at September. This is their goal the republicans say you know what, we don't think we can get her confirmation hearings done in time. So, they thinking it's more realistic for September. The final thing, though, is October. Remember, the first Monday in October that is when the court begins and the president said he wants his nominee, Sotomayor, confirmed, so she's on the bench by then. Betty?

NGUYEN: All right, CNN's deputy political director, Paul Steinhauser, a friend of the show. Thanks so much for joining us today.

STEINHAUSER: Thank you.

HOLMES: Strong language from defense secretary Robert Gates, he told a meeting of defense ministers in Singapore the U.S. will not stand idly by and accept a nuclear North Korea.

(BEGIN VIDEO CLIP)

ROBERT GATES, DEFENSE SECRETARY: North Korea's obviously further along in these endeavors than Iran. But they both pose very difficult challenges. And the reality is, in both cases, for there to be a diplomatic, a peaceful solution to these challenges, requires significant international, multilateral cooperation. And a willingness to impose genuinely tough sanctions that bring home to both countries real pain for their failure to adhere to international norms.

(END VIDEO CLIP)

HOLMES: North Korea claims it set off an underground nuclear device on Monday. It was followed by six missile launches across the week. Analysts believe another is in the works.

Turn to Pakistan now, where military leaders say they pushed Taliban fighters out of the largest city in the Swat Valley. Mingora is the name of the city, usually bustling with several hundred thousand people, described as a ghost town right now. The army says militants are still on the outskirts of that city. Pakistan launched a broad crackdown on Taliban fighters a month ago. And the United Nations says the campaign to retake the Swat Valley has displaced almost 2.5 million people.

NGUYEN: Britain's Prince Harry is wrapping up his first official trip to the U.S. with a bit of fun today. He's scheduled to play polo this afternoon on Governors Island in New York. The match against the Argentine polo player will raise money for his charity which supports kids who lost parents to AIDS in sub-Saharan Africa. Yesterday the third in line to the British throne paid his respects to victims of 9/11 by laying a wreath at Ground Zero. He also paid tribute to the 67 British victims of the attacks.

(WEATHER REPORT) HOLMES: The stimulus plan, how is it working for you? We check in with one of the president's men in charge of tracking the plan's progress.

NGUYEN: And then meet one precious young lady, a word wizard, who is one of the best spellers in the country.

(COMMERCIAL BREAK)

HOLMES: And the Obama administration says its stimulus package has saved or created 150,000 jobs. Well, there are many other folks out there that say those numbers aren't quite right. A lot of people questioning as well what does it mean to save or create. How do you know which one you saved? How do you know if you've created? Well, I caught up with the vice president's top economic adviser yesterday, his name is Jared Bernstein, and I asked him point-blank about the disparity in some of the numbers. Take a listen to our conversation.

(BEGIN VIDEO CLIP)

JARED BERNSTEIN, ECONOMIC ADVISER TO V.P. BIDEN: Well, certainly we wouldn't agree with those numbers as a complete count. What I think, and I'm not exactly sure of the study you're talking about, I think they're doing, are counting jobs that were created by send-out to contractors. Now, you have to understand, infrastructure to contractors is one small part of this plan. I mean, that doesn't count $25 billion out the door, medical assistance to the states. That doesn't count tax cuts under way since April for over 100 million families.

HOLMES: I want to ask you about another analysis that was done by the Associated Press, I'm sure you're probably familiar with as well, saying that so much more of the money is going towards not the hardest-hit areas but areas that are doing OK. Essentially saying that many areas with the highest unemployment rates don't have those shovel-ready jobs, it takes money to have those jobs ready. So, some of the places with the lower unemployment have jobs ready and so much more of the money is going towards those areas. So, the money essentially not going to where it's needed most. Do you agree with that?

BERNSTEIN: I would dispute that conclusion in the following way. First of all, we have projects that are undergoing -- that are either out there in process or contracted, obligated, they will start soon, in every state and territory across this country. So, one very important thing to recognize, this recession has great depth and great breadth. And this plan has to go everywhere to make a difference. But, secondly, there are a whole set of what we call safety-net programs that this plan ramps up, we're talking about unemployment insurance, we're talking about food stamps, talking about job training. By formula, those automatically go to places that were hit most by the downturn.

HOLMES: Last thing here, is the administration happy with the way things are going with the auto industry right now? Are going, not happy with the way things are going since they're hurting, but, still, are they going in the right direction in you all's opinion?

BERNSTEIN: I think so. I'm not going to comment on the GM situation, because that's not going to be finalized until Monday, June 1st, and the end game things are changing quickly. I will say that I stood out here and said that I believe that in 30 to 60 days Chrysler would be out of bankruptcy. That's a very quick bankruptcy. And, remember, this is not a liquidation bankruptcy, this is a bankruptcy that gives Chrysler a fresh start, takes them out from under some of the unsustainable debt, creates a more viable, competitive company moving forward. A lot of folks said you'll never get out that quickly. We think we're on track in that regard. I will say, though, let's not -- this is a wrenching of restructuring for a lots of people in lots of communities.

(END VIDEO CLIP)

HOLMES: In the end Jared Bernstein there, top economic adviser to the vice president, insisting the president's stimulus plan will create jobs, has saved or created 150,000 so far, says another 600,000 will be saved or created by August and then 3.5 million jobs by the end of next year.

Well, CNN's Ali Velshi and Christine Romans explore the rise and fall of the American auto industry and where it might go from here, "How the Wheels Came Off, the Rise and Fall of the American Auto Industry." You can see it 1:00 Eastern today or see it as well tonight 8:00 Eastern only right here on CNN.

NGUYEN: Well, speaking of what you can see and what you can't, the late-night TV landscape, that is changing.

HOLMES: A lot, yes. Jay Leno saying good-bye. Well, he's going to say hello again in September.

NGUYEN: Kinda sorta.

(COMMERCIAL BREAK) NGUYEN: All right, folks. New era in late-night TV begins on Monday. Conan O'Brien becomes the fifth host of NBC's "The Tonight Show" and for the first time the show is older than its host.

HOLMES: Jay Leno went out last night like he came in 17 years ago.

NGUYEN: Wow!

HOLMES: At the top of his game. Check him out.

(BEGIN VIDEO CLIP)

JAY LENO: You realize when I started this show, my hair was black and the president was white. Did you know that? People ask me, oh, what are you going to do after the last show, are you going to go on vacation, this kind of stuff? Actually, I'm going to be going to a secluded spot where no one can find me, NBC prime time. When you look back at 17 years, you realize how much we've all gone through. Since I first sat here, we've had four U.S. presidents, two of them Bill Clinton and George Bush. Thank you so much for that. Thank you. Thank you for those two.

We survived earthquakes, fires, floods, we've been through two wars. We witnessed the tragedy, of course, of September 11th. One of the most important things Johnny Carson ever taught me was that no matter what happens in the world, you always have to have a monologue ready to go because that's your job. When times are serious you make silly jokes, and when times are silly you make serious jokes. But you always want to have jokes and that's what we've been trying to do for the last 17 years is to make you laugh and it's been an honor and privilege to do that.

(END VIDEO CLIP)

NGUYEN: Next up for Leno, that place that he calls a secluded spot where no one can find him, that being a five night a week prime- time show beginning in September. It's going to be interesting to see him in prime time and see how Conan does in his old spot.

HOLMES: I'm not sure how much they've developed that show. Not even exactly sure what it is going to be.

NGUYEN: Is it going to be Conan's show, is it going to be "The Tonight Show"? What's it going to be?

HOLMES: But Conan has a different brand of humor.

NGUYEN: Totally.

HOLMES: He's almost an acquired taste if you will. I love Conan, he's great.

NGUYEN: The hair is a bit of an acquired taste as well, isn't it?

HOLMES: But, yes, the landscape has changed.

NGUYEN: Absolutely.

So, amid the hustle and bustle of crowded New York City lies a secret, a peaceful sanctuary, if you will.

HOLMES: I-Reporter Julio Ortiz gives us an insider's tour as part of our series "My City, My Secret."

(BEGIN VIDEOTAPE)

JULIO ORTIZ, I-REPORTER: Hi, I'm Julio. We're in New York City. And I want to show you some of my best-kept secrets in New York. We're inside the Cathedral Church of St. John the Divine. This is actually a hidden gem in New York because people don't know about the musical programs, the outreach to the community that the cathedral offers and just the beauty of it. One of the things I really love about this place is that in the middle of all this, like, traffic, of all this noise, ambulances, people back and forth, I come in here, and you find this peace that's not available easily anywhere else.

We're here at the Hudson River Parks, pier 54. It's actually the remains of what's left of the magnificent pier. For me it's the place where I end my bike rides on that little bench there, and it also has a very historical significance because this is where they brought the survivors of "Titanic" when they came back. Welcome to Coney Island, USA. This is where New York City ends. This is one of the world's most famous amusement parks. What makes this place very special, it's like stuck in time. I mean, the attractions are the same from years ago. The whole feel of the atmosphere of the place is very old fashioned. So, those are the secrets of my New York City. I want to see your secrets. Go to ireport.com/mycitymysecret. Let's see them.

(END VIDEOTAPE)

HOLMES: Well, of course, we know the gay marriage debate has been ongoing, around the country, really, but especially in California lately with proposition 8. Well, we're going to talk, after the break, live here, a California mayor who was once a vocal opponent of gay marriage now he is a vocal proponent of gay marriage.

NGUYEN: Hmm, what changed his mind?

HOLMES: A family -- it's a family story that changed his mind.

NGUYEN: Really? OK.

HOLMES: We're going to hear from him right after the break.

NGUYEN: Also, a champ who's got us under her spell. Meet the reigning word wizard when CNN Newsroom continues.

(COMMERCIAL BREAK)

HOLMES: Well, it's half past the hour. This is what's happening now.

Parting out GM before its expected filing for bankruptcy. Overnight General Motors sold its controlling stake in German subsidiary Opel.

Also Pakistani military officials say their month long offensive against the Taliban is paying off as troops reclaim control of Mingora. That's the largest city in Pakistan's northwest territory.

Also, Prince Harry wrapping up his two-day tour of New York City, today, the third in line to the British throne will visit an inner city charity championed by President Obama.

Well, on the front lines, battling California's ban on same-sex marriage you'll find maybe an unlikely pair. San Diego Mayor Jerry Sanders, is some might even call him a maverick among some of the republicans. He used to at one point was opposed to same-sex marriage. He's had a change of heart. And a big part of that is that young lady sitting next to him, his daughter, Lisa Sanders, who came home not too long ago -- well, came home from college, I should say and told her parents that she was gay, and he had a change of heart. So, welcome to you both. Thank you both for being here. Mayor Sanders, I will start with a question for you here. Why were you an opponent in the first place? I know you supported civil unions, but you didn't go as far as being a supporter of gay marriage. Why not?

MAYOR JERRY SANDERS, (R) SAN DIEGO: Well, I suppose that was an easy political thing to do being a republican and running for office. You can say you support civil unions and that you're opposed to gay marriage and it makes it pretty easy to do for the party and for everybody else.

HOLMES: Am I hearing you right? That was solely -- maybe that wasn't something that was necessarily in your soul. You thought you were going along with what you thought the party line was?

SANDERS: Right, you know I think that's one of the issues I'd not really thought a lot about. I was like a lot of people who thought civil unions were about the same as marriage.

HOLMES: Lisa, what was that like for you? You did come home, like you said, from college, told your dad you're a lesbian. What was it like for you going through whatever you may have been going through to get to that point to know that your father, and his political career at least, was publicly out there saying that he was opposed to same-sex marriage?

LISA SANDERS, CO-FOUNDER, 51%: Well, I mean, like he said, it was kind of what was in line with the Republican Party. But at home, in our family, I knew he supported me no matter what. So, I knew what he had to do, and I think he's the best man for San Diego, so it was really important that he got elected. And I knew he supported me at home, so that was the most important thing.

HOLMES: But a part of that, of course, supporting you at home, but then seeming to publicly not be supportive of you. Of course, he's your dad. He's going to be supportive. But, you know, to be out there and to publicly be against same-sex marriage certainly people will take that as being against his daughter in some ways.

L. SANDERS: Well, I mean, I wasn't out to a lot of people. I was out to my close friends and family, so it was not public knowledge. And I think part of that was to keep me safe and let me go through my process of coming out. So, that was really helpful. And then when I got a little older and wiser and the issue became more of a debate and it became more important in my life, he did stand by my side and support me.

HOLMES: And, Mr. Mayor, how much a part of your political evolution on this subject, this policy at least, did your daughter have to do with? Would you say she was the sole reason for this change of heart?

J. SANDERS: No, she wasn't the sole reason, but she was by far a huge reason. But I have several staff members who are members of the gay/lesbian community, and when we decided to file an amicus brief in the city of San Diego supporting gay marriage, that was one of the times when I really had to wrestle with it. And I had a group of gay/lesbian people from the community come in and tell me how they felt, and I realized that it was not equal rights and that civil unions didn't equal marriage and came out very publicly and said that I did support marriage for everybody. And it was a tough thing to do, but it was the right thing to do. And my daughter's had a tremendous impact on me.

HOLMES: Would you say, Mr. Mayor, now you are uniquely qualified to understand people on the other side of the debate now, who are the other side of the same-sex marriage debate, those who are opposed to it? Can you relate to them and understand them, and I guess be more understanding of their position since you used to be on that other side?

J. SANDERS: Well, I certainly understand the position. And I -- you know, as I've gone through my journey on this, I certainly understand that equality is a tough issue, and it's not a popular issue frequently because you're not supporting people who have money or people who support the party, you're actually supporting people who need that support and don't get it any other way. So, I understand what they're going through, but I also think that justice and equality are extremely important issues, and sometimes it is a little tough to support them, but you have to.

HOLMES: And, Lisa, I guess how difficult was it to watch your dad go through what he went through politically and knowing that you had such a role that you played in it? I guess, in some ways you are probably proud of him, but how difficult was it to watch what you were watching your dad go through?

L. SANDERS: Through that whole thing I was extremely proud, and we have such a close family and really close friends, so it made it a lot easier. And I knew the risks he was taking when he did support me. So, to see your father stand up for you like that and still get elected and have the support of the community, it just -- it warms my heart. So, it's something nobody will ever -- you know, I'm really happy that he's my father and that he supports me so --

HOLMES: Lisa Sanders and Mayor Jerry Sanders, mayor of San Diego, you all have a unique story in this whole debate. As we know, the Supreme Court came out not long ago there in California saying, that in fact, those 18,000 gay couples who did get married, those marriages can stand, but at the same time upheld proposition 8 which banned that in the state, gay marriage in the state. I know the debate's not over. Certainly hope we can maybe touch base with you down the road as this debate continues. But thank you both so much for being here and sorry about that horrible weather that you're having in San Diego. They said its overcast there.

J. SANDERS: Well, you know, it's about 68 degrees now, so we're suffering.

HOLMES: Oh, no. All right. Thank you both for being here, enjoy the rest of your weekend.

L. SANDERS: Thank you.

NGUYEN: Surprised they're not wearing parkas.

The recent salmonella outbreak might have you thinking twice before you buy peanut products. Congress working on several measures that could give the FDA more power over peanuts and other foods to restore your confidence and ensure your safety. And one unexpected group supports the measures, U.S. farmers. CNN's Dana Bash explains.

(BEGIN VIDEOTAPE)

DANA BASH, CNN CONGRESSIONAL CORRESPONDENT (voice-over): At first, Christopher Meunier's mother could not figure out what made him so sick. Hospitalized for a week.

GABRIELLE MEUNIER, MOTHER: All of a sudden the symptoms got very, very bad. Very fast. We had absolutely no idea what was going on. Never considered salmonella.

BASH: It was salmonella from tainted peanuts. An outbreak that sickened tens of thousands of people and caused nine deaths. The contaminated peanuts were traced to just one processing company with two plants in Georgia and Texas. But the economic repercussions are widespread. Just ask Virginia peanut farmers Dee Dee and Tommy Darden.

DEE DARDEN, PEANUT FARMER: When the salmonella scare hit, that just put the brakes on everything. It's really going to hurt us, at least 20 to maybe 30 percent less income on the farm.

BASH: That's why the Dardens are joining peanut farmers across the country in a move that may seem surprising, they want more government regulation over their industry.

DARDEN: The consumer wants confidence in buying a product. And I think a good food safety law would do that.

BASH: Jimbo Grissom came to lobby congress on behalf of nearly 1,000 peanut farmers.

JIMBO GRISSOM: A stricter food safety would be good for the industry. And it would be for most industries.

BASH: Lawmakers appear to be listening.

REP. ROSA DELAURO, (D) CONNECTICUT: It is hard not to see a food safety system in crisis.

BASH: Several bills are moving through Congress to give the FDA more power over peanuts and other foods. Now, federal inspectors visit some food plants only once every 10 years. That could be stepped up to every 18 months for high-risk facilities. Lawmakers are also pressing to give the FDA something they don't have now, clear authority to recall tainted food products. And they want to toughen requirements on food handlers and growers to identify and report contamination. Tommy Darden said it's worth it. TOMMY DARDEN: This is what it's all about.

BASH: To save his peanut farm and his way of life.

(On camera): Democratic aides in the House and Senate tell us Congress is on track to pass a bill stiffening regulation over the country's food supply by the end of the year, since it has strong support in the Obama White House and even among senior congressional republicans who have hard-hit and frustrated farmers in their states. Dana Bash, CNN, Washington.

(END VIDEOTAPE)

(WEATHER REPORT)

HOLMES: Up next, a young lady who hasn't broke a thing. She's got her stuff together! She's got a way with words, specifically letters. We're talking to the reigning queen bee.

(COMMERCIAL BREAK)

HOLMES: She is enjoying her success to the letter today. Kavya Shivashankar is her name and she's this year's Scripps Spelling Bee champion, she's making the media rounds today before heading back home to Kansas.

NGUYEN: Yeah, T.J. and I spoke with her last hour about her big win and its $40,000 payday.

(BEGIN VIDEO CLIP)

KAYVA SHIVASHANKAR, 2009 SCRIPPS NATL. SPELLING BEE CHAMPION: There are a couple lists that Scripps gives out. There's a spell it, there's a list called the spell it every year and there's a consolidated word list which is like the basic list and I study those. My dad's my coach and he really helped me out. There was no way I could have done this without him. But he would sit down, he would help me and we would focus a lot on roots. We don't memorize these words. So I learned a lot of roots and that helped me out especially with the word I didn't know, it was urgasia. And I asked the definition. And I could figure out the root word and I was able to get it that way, and that's my technique. I focus a lot on roots and not memorization.

(END VIDEO CLIP)

HOLMES: The key is the root of the word.

NGUYEN: The root of the word. And for her the key is spelling it out on her hand. I thought that was a really neat technique.

HOLMES: I don't think either of those techniques would have helped you spell helicopter back in third grade.

NGUYEN: You're still taking me back to that moment that I'm traumatized about. Third grade spelling bee, three people left on stage, they're so excited yet so nervous. I get the word helicopter which I really wanted because I practiced it.

HOLMES: Seems like the first thing you should know.

NGUYEN: And the first thing that comes out of my mouth, "I"? Yes, I don't know how that happened.

HOLMES: The "I" is silent in helicopter.

NGUYEN: It definitely doesn't start with the letter "I."

HOLMES: No, it does not. That's all right, you'll redeem yourself one of these days.

Coming up here, don't go away, we're going to let you find out what's so special about a group of Harlem kids. So special that Prince Harry just had to meet them.

(COMMERCIAL BREAK)

HOLMES: Well, as we've been telling you, Britain's Prince Harry is out and about in New York City today, and one of his scheduled stops is in Harlem at Harlem's Children's Zone.

NGUYEN: Yes, this is important because it began 39 years ago as a truancy prevention program for disadvantaged kids. Well, it has evolved into a model for President Obama's promised neighborhoods initiative and its part of our "Black in America" special airing later this summer. Here's CNN's Soledad O'Brien.

SOLEDAD O'BRIEN, CNN CORRESPONDENT (on camera): Hey Betty, hey T.J. Educators and social scientists as you know have been trying for years to close that racial achievement gap and they've done it really not with a whole lot of success. But there's a program in Harlem, New York, where they're showing some signs of real progress and it's really all because of a guy who refuses to give up.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: What number?

16.

O'BRIEN (voice-over): The children at this Harlem preschool are learning all the skills they'll need to be successful in kindergarten. Reversing a trend so common in poor communities.

GEOFFREY CANADA, FOUNDER, HARLEM CHILDREN'S ZONE: Poor children gain language about half the rate of middle-class kids. By the time you enter kindergarten, they're already, they are thousands of words behind their peers.

O'BRIEN: Geoffrey Canada grew up one of those poor kids in the South Bronx, now he's on a mission to level the academic playing field for children in Harlem.

CANADA: We think part of the problem in poor communities is we come up with a great program and it works for kids for two years. Guess what? That's not going to be sufficient.

O'BRIEN: So, Canada created the Harlem Children's Zone, where kids are surrounded with a series of programs, including baby classes, preschool, charter schools, after-school programs and tutoring for college students.

CANADA: What are you learning about?

Worms.

O'BRIEN (on camera): Eww!

(Voice-over): It was hands-on learning when we visited the Promise Academy Charter School in the Harlem Children's Zone.

UNIDENTIFIED FEMALE: These are our fourth graders.

O'BRIEN: These fourth graders have been in the zone's pipeline since birth.

CANADA: This particular class is the smartest class not only at Promise Academy, but probably in all of New York State.

O'BRIEN: And he's got the numbers to prove it. Math and English scores that beat the city and state averages, and a Harvard study that concludes these students have closed the black/white achievement gap.

PRESIDENT OBAMA: When I'm president of the United States of America, the first part of my plan to combat urban poverty will be to replicate the Harlem's Children's Zone in 20 cities across the country.

O'BRIEN: Canada says creating just one program on the same scale as the Harlem Children's Zone will take at least $35 million. A tall order during a tough economy.

CANADA: We think if you look at what the cost is not to do this well, these same communities, it's, you know, emergency room, it's special ed, it's jails and incarcerations, it just doesn't make any sense.

O'BRIEN (on camera): You can front end it or back end it.

CANADA: That's exactly right, you're going to pay one way or the other. At least you end up with people who give you back more money than you've ever paid them.

(END VIDEOTAPE)

O'BRIEN: President Obama has asked for $10 million in the 2010 budget for what he calls these promise neighborhoods which would be roughly modeled after the Harlem Children's Zone. Canada says 60 percent of his funding comes from private sources mostly Wall Street and because there have been big economic problems with Wall Street he's seen a drop in those funds. He says so far he hasn't had to cut any programs for the kids, but he has had to let go of some of his staff. Betty, T.J.?

NGUYEN: What a program.

HOLMES: The second installment, Soledad O'Brien's "Black in America" series premiers later in July, it will be right here on CNN. The 23rd and the 24th.

NGUYEN: Well you don't have to wait for Fredricka Whitfield, she is coming up at the top of the hour and look who is here.

FREDRICKA WHITFIELD, CNN ANCHOR: Hello, how are you all doing?

NGUYEN: Doing well today.

WHITFIELD: Good, good, good.

We have a lot on our plate as well today, beginning with our legal round. We have cases that are on our radar. Our Avery Friedman is going solo today so we will delve into the pretty harsh might be some words that might be used for the sentencing of music producer Phil Specter and how is it this would happen after his first trial ended in a hung jury? And we're also going to be talking to our Avery about Chris Brown. We have no video to share with you? Chris Brown, he'll be heading to court soon and our Avery Friedman says it just might be that his ex-girlfriend now we understand Rihanna should be taking the stand to testify against him.

HOLMES: Is it official now?

WHITFIELD: I don't know, either. I'm just learning this. Oh, I thought they were still on. So they're off?

NGUYEN: I don't know.

WHITFIELD: I think they're off.

NGUYEN: Yes, I don't know.

WHITFIELD: On again/off again. OK you guys don't have children, but you will soon learn when you do have those kids -- T.J.'s like, really? Sometimes they don't hear you. Sometimes communicating with your wee ones is very challenging so we're going to talk to a television producer who found out the hard way. It really was no laughing matter for this family. Communicating with their kid was very difficult. So she decided to drop in a little music. She came up with some very inventive music to communicate with her kids -- kid in particular, but she has since learned that kids and families of all types are really embracing this music. So she's going to be joining us to talk about --

NGUYEN: The lyrics of the music say no, you can't have it, stop asking.

WHITFIELD: Little things like brushing your teeth, making it into a song. Come on, let's go to bed. You don't want to hear me sing, but that's the idea. NGUYEN: I get it.

WHITFIELD: And then of course 4:00 later on today, too, we're trying to help those college grads who aren't landing jobs out there. What is going on it's very different these days, we also want to hear from you all, out of school, out of work. Send us your e-mail, your comments, your questions. We have experts on hand who hopefully can help you land a job if you just graduated from college.

NGUYEN: And it is graduating season, so a lot of them are looking.

WHITFIELD: Yes.

NGUYEN: Thank you Fred.

HOLMES: Great, thank you so much.

NGUYEN: See you at the top of the hour.

In the meantime though -- we were listening very closely. Look at this, though, a married couple they go on a cross-country tour and we want you to meet some entrepreneurs doing it their way, as they say it and teaching us all a little bit of a life lesson.

(COMMERCIAL BREAK)

NGUYEN: CNN's Tony Harris has this week's "Survival of the Fittest" story.

(BEGIN VIDEOTAPE)

TONY HARRIS, CNN CORRESPONDENT (voice-over): Back when these photos were taken in London, a smiling Jennifer and Joe Remling had no idea what was around the corner. They had moved overseas with lucrative jobs as a corporate recruiter and an architect, but it was 2001 and the dot com boom was about to go bust. They both lost their jobs.

JENNIFER REMLING, AUTHOR, "CARVE YOUR OWN ROAD": I would wake up in the morning and, you know, my thoughts would be, like, OK, what's the point of getting out of bed. There's no jobs. There's no prospects. There was a period of deep reflection, deep soul-searching and I determined at that point in my life that I wasn't going to allow this to happen to me again. I was going to be in control the next time a recession came around.

HARRIS: Five months later she was spinning the plans to become her own boss and get control of her own financial destiny.

REMLING: I went on a journey of reading about 300 books in two years from the very esoteric to the very scientific and everything in between about that and started to apply those principles to my life.

HARRIS: She found another corporate job but slowly began building her own recruiting company, one client at a time. REMLING: You can't just jump off a cliff and everything appears. I would say build a bridge and it takes about two years.

HARRIS: After two years she quit her day job. Joe had his own epiphany. After years of working for large corporate firms he slid away and founded his own architecture and design firm with two partners.

JOE REMLING, AUTHOR, "CARVE YOUR OWN ROAD": You have to be the director and not the participant in your own life.

HARRIS: With two entrepreneurs in the family their lives changed completely.

REMLING: This started out with Joe and I becoming a lot happier with our lives after carving our own road so to speak.

HARRIS: They not only carved their own road, they hit the road literally.

J. REMLING: It started off actually as an adventure for us as a couple to kind of hit the road.

REMLING: We wanted to get out and find out about other people so we could share this with the people in this country who want that for themselves but don't know how to get it.

HARRIS: Jennifer and Joe took a cross-country road trip in this borrowed Airstream, the end result? This book "Carve your own Road."

REMLING: We interviewed about 40 people who had been either in a corporate job and quit to become an entrepreneur or who had figured out a way inside the corporate setting to innovate and do really cool things.

HARRIS: Through these interviews Jennifer found a common denominator for success. First, get clarity.

REMLING: We aren't taking the time to get deep clarity about what we want with our lives. So it's really about taking that time to ask yourself the bigger, deeper questions. What am I doing when I lose all sense of time. What is it that feeds my soul? Do I want to have an impact and what does that look like. What things am I told that I do well. These are the kinds of questions, deep soul-searching questions.

HARRIS: Second, set big goals. Write a vision statement.

REMLING: Big goals move me forward and they get me really excited about overcoming fear and obstacles. When you set sort of mediocre goals it's hard to get like super motivated and excited about it.

HARRIS: Third, immersion.

REMLING: Taking 10 minutes out of your day every day to set the tone for your day and where you're headed. And then from that point you can be very clear about what action to take.

HARRIS: She also recommends a visualization board. Cutting out pictures of your goals so that you can get a literal picture of what you want. Now Jennifer only does corporate recruiting 10 percent of the time. The rest, she's holding workshops, getting paid to help others.