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Rising Mortgage Rates; Middle East Peace Focus of Obama's Trip; Thousands in U.S. Seek Medical Help Overseas; Deals from GM and Chrysler; Gingrich Backs off Sotomayor Comments
Aired June 03, 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: No hope for survivors, and now fading hope for finding a key clue. The Air France crash, this hour, live reports from Paris and Rio de Janeiro.
Separated by five years and thousands of miles, a father/son reunion within reach is once again on hold.
Plus, it looks like there's another new Osama bin Laden tape. We'll tell you what the terrorist leader is purportedly saying about President Obama and Pakistan.
It is Wednesday, June 3rd. Hi, everybody. I'm Heidi Collins. You are in the CNN NEWSROOM.
President Obama in the Middle East and on a mission. Less than two hours ago he arrived in Saudi Arabia. His goal, open a new dialogue with Muslims.
CNN's Ed Henry will look at tough issues to be discussed today. Oil prices, peace efforts and Iran's nuclear problem. And Ben Wedeman looks ahead to tomorrow and the main event of this trip. President Obama and a speech that will try to set a new tone with the Muslim world.
Let's set the stage right now. Senior White House correspondent Ed Henry is traveling with the president. He's joining us from the Saudi capital of Riyadh.
So, Ed, good morning to you. Why is the president stopping in Saudi Arabia, specifically? What's behind all of that?
ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT: Well, Heidi, he added this stop really at the last minute. Just in the last week or so. It's very rare for such a big trip for a U.S. president.
It's clearly a sign of respect to King Abdullah who greeted him here at the airport. Walked down the red carpet, 21 gun salute. They had a traditional cup of Arabic coffee as well together. Clearly trying to show respect of this leader because King Abdullah is pivotal to so many of the issues that are vexing this region.
From trying to restart this Israeli-Palestinian peace talks. You've got Iran, you've got both wars in Iraq and Afghanistan, and so this is a sign of respect to this leader from the U.S. president and it really sets the table for that big speech tomorrow in Cairo, Heidi. COLLINS: Well, any idea of what we can expect from this speech in Cairo tomorrow by way of the message that he's actually trying to send and perhaps how it will be received?
HENRY: When you talk to senior White House aids what they refer back to is a speech a couple of months ago to the Turkish parliament. And there the president very directly said the U.S. has not been and never will be at war with Islam.
That's a signal where they're trying to turn the page from the rhetoric of the Bush years, and say look, there's a new day in the United States, a new day around the world.
How is it being received? Obviously it's expected to be received pretty well in the Muslim world but how it will be received in Israel will be interesting because already some pro-Israel Democrats back in the U.S. Congress have been expressing some alarm that maybe the president is putting too much pressure on Israel in recent days reaching out more to the Muslim world.
The president trying to alleviate those concerns in some interviews on the eve of this trip. Telling the BBC that, look, a two-state solution, Israel and a Palestinian state living side by side, could actually be good for Israel in the long run if it can stop some of the violence in this region, Heidi.
COLLINS: All right, CNN's Ed Henry for us traveling with the president this morning. Thanks so much, Ed.
So how important is this trip and how is it being viewed by Muslims? Senior international correspondent Ben Wedeman is in Cairo with that perspective as well.
Ben, good morning to you.
BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Yes, good morning, Heidi.
Well, the Egyptian capital is preparing for the arrival of President Barack Obama. We've seen streets paved and cleaned -- repaved and cleaned, and in fact down in Cairo's old market, shopkeepers have printed up t-shirts welcoming Obama as the new King Tut and put together other little odds and ends as well for the tourists during this visit.
By and large from the people we've spoken to here in Cairo over the last few days, it seems that Obama is a popular American president, certainly the most popular American president in many years. There are people who have reservations about the fact that he's even coming here. They're worried that by coming here in his first stop is going to be to meet with Egyptian President Hosni Mubarak.
They're worried that his visit here is going to legitimize the 28-year rule of President Mubarak. They want him to focus on things like human rights, democracy, political reform. Something that they feel is urgently needed here in addition to opening up a dialogue between the United States and the Muslim world. Heidi?
COLLINS: Curious then what the response has been in the region so far.
WEDEMAN: By and large positive but people are really waiting to see first something palpable, something real, that they can get out of this trip, this speech by President Obama.
People say, for instance, when you talk to them, they'd like to see the United States more engaged on the Palestinian and Israeli track of pulling out of Iraq, making progress in Afghanistan. Those are important issues for the people here.
People are very well aware that President Obama is an eloquent speaker. They're expecting a very good speech, a rousing speech. But what they want is results, not just words. Heidi?
COLLINS: All right, CNN's Ben Wedeman for us this morning. Ben, thanks for that.
I want to give you a look at the president's schedule now for today. Last hour he attended a welcoming reception at King Abdullah's farm. Minutes from now, the president holds a bilateral meeting with the king.
Tonight President Obama will board Air Force One and head to Cairo, Egypt. We will have live coverage of President Obama's speech to the Muslim world. It is now scheduled for tomorrow morning at 6:00 Eastern, 3:00 Pacific. You can of course see it live right here on CNN.
As President Obama arrives in the Middle East an audiotape surfaces now, suggesting al Qaeda leader, Osama bin Laden, is alive. Our senior editor for Arab affairs Octavia Nasr has heard the tape.
So, Octavia, I want to ask you off the bat, the process for trying to figure out whether or not it is Osama bin Laden, indeed, in the first place.
OCTAVIA NASR, CNN SENIOR EDITOR, ARAB AFFAIRS: Well, first of all, it does sound like Osama bin Laden. So someone like myself and many others who have heard Osama bin Laden over the years, hundreds of hours of Osama bin Laden. It does sound like the man.
And we always wait for CIA voice recognition voice testing to tell us, to confirm that it is him. But so far we have no reason to believe it is not him. The tape is interesting for several reasons.
One it does somehow it does give a proof of life, if it is indeed Osama bin Laden, because we'd been getting reports from Pakistani officials that they believe Osama bin Laden is dead. So now we have a reason to believe that their information is wrong.
But let's take a listen to a portion of that tape, shall we?
(BEGIN VIDEO CLIP) OSAMA BIN LADEN, AL QAEDA LEADER (Through Translator): Obama and his administration put new seeds of hatred and revenge against America. The number of these seeds is the same as the number of those victims and refugees in Swat and the tribal areas in northern and southern Waziristan.
This way Obama proved that he is walking the same road of his predecessors to build anything against Muslims and increase the number of fighters against the U.S. while establishing more lasting wars.
(END VIDEO CLIP)
NASR: So in this message, the voice on the tape, the man believed to be Osama bin Laden, mentions Swat Valley. He mentions the mass exodus from Swat Valley which happened early May but he doesn't mention the trip. President Obama's trip to the Middle East or his planned speech to the Muslim world.
So we have reason to believe that this message was taped somewhere in early May. But when Al Jazeera got it because this tape aired on Al Jazeera.
COLLINS: Right.
NASR: We didn't receive it online as we usually see those tapes surface. We have reason to believe that it was hand-carried, it was hand delivered to Al Jazeera. And...
COLLINS: Which we have seen before.
NASR: Which we have seen before but it doesn't mean that Al Jazeera received it today. They could have received it before.
COLLINS: Yes.
NASR: And timed it to coincide with the president's trip.
COLLINS: Kind of brings up the question, though, how relevant is Osama bin Laden that the point?
NASR: That's a very, very good question. Because, as you heard Ben Wedeman earlier, the scene -- you know when you talk to Muslims around the world, when you ask them about President Obama, he seems to be enjoying a lot of popularity. He's someone that they look up to. Someone that inspires them.
So basically you have many, many people waiting for that speech in Cairo tomorrow. When you listen to that hate language from bin Laden, many experts say that it shows that bin Laden is bankrupt, bin Laden is not relevant. He's just using the hate language. He's using his propaganda just to say I'm still alive, I'm still on the run, but is he capable of driving attacks against the U.S. or U.S.' allies?
Many experts believe that that is not the case. So he's not that relevant in that sense. But at the end of the day the question is always, how come this man is still on the run? How come this man is still able to tape messages and send them out?
COLLINS: The...
NASR: Yes?
COLLINS: If in fact it is of course confirmed through the CIA that it is him on this tape?
NASR: Right. And the other question, of course, that people ask, how come we only hear audio messages from him? The last message that we saw bin Laden in was 2004. That was a long time ago.
COLLINS: Yes.
NASR: So many reasons for that. One, that he could have changed his looks. On one of his last tapes, we saw him dyed his beard which is very unusual for someone like bin Laden, dye it black. So many reasons. One, he could look different. Two, he could looking sickly. Three, he probably could also be hiding in some place that has no electronics whatsoever.
So they bring in a tape, they record a message, and run with it instead of taping video. Because, you know, to take video equipment to where he is that will draw a lot of attention.
COLLINS: Yes.
NASR: So many reasons for that but so far, lately, we only heard audio messages from bin Laden.
COLLINS: All right. Well, we will stay on top of trying to figure out if in fact it is him or not.
Octavia Nasr, we sure do appreciate it. Thank you.
NASR: Thank you, Heidi.
COLLINS: Turning now to a search for the Air France jet that plunged into the Atlantic with 228 people on board. French officials say there is no hope anyone survived the crash. And they say they may never find the jet's flight data recorders or cockpit voice recorders.
But Brazilian military jets did spot debris from the plane off the coast of Brazil not far from the original flight path. Now crews are heading toward the site to start recovery.
CNN's Paula Newton is in Paris now with accident investigators.
So, Paula, fill us in. What's the latest now this morning?
PAUL NEWTON, CNN CORRESPONDENT: Well, Heidi, a lot of information to digest here. And key is the fact that those black boxes they're saying they're not very optimistic they'll be found.
What's going to happen within the next hour, there's going to be a memorial service at Notre Dame Cathedral here. And that's when -- really this is starting to hit home to a lot of the friends and relatives of those missing and presumed dead now on flight 447.
From early on, they were hoping against hope that somehow someone would have survived this and really French officials pouring a lot of water on that today but not just on that prospect. Also saying the one question that all of us want answered, what happened to that flight?
There's certainly has lots of implications for flight safety going forward. They're saying they won't even have a preliminary report until the end of the month and they again went through all the adversity in the Atlantic. They're talking about, you know, the terrain on the sea bottom. How deep those black boxes could be and the wreckage. Perhaps 10,000 to 20,000 feet.
Not really much good news here as the family and friends start entering the Notre Dame Cathedral. Heidi?
COLLINS: All right, Paula Newton for us this morning. Again, we'll stay on top of that story throughout the day here on CNN. Thank you, Paula.
Getting her foot in the door, it's another day on Capitol Hill for Judge Sonia Sotomayor. Answering questions about cases and controversial comments.
ROB MARCIANO, CNN METEOROLOGIST: I'm Rob Marciano in the CNN Severe Weather Center.
Severe weather rocking in the East Coast yesterday all the way back through Texas. We have video of a man trapped by flooding waters. It's all coming up when the CNN NEWSROOM comes right back.
(COMMERCIAL BREAK)
COLLINS: Supreme Court nominee Sonia Sotomayor is back on Capitol Hill today for round two of her meet and greet. Members of the Judiciary Committee are also meeting today to try and set a timetable for her confirmation hearing.
CNN senior congressional correspondent, Dana Bash, has more.
(BEGIN VIDEOTAPE)
DANA BASH, CNN SENIOR CONGRESSIONAL CORRESPONDENT (voice-over): One set of office to another, Judge Sonia Sotomayor sat, smiled and made small talk for the cameras before meeting privately with the senators, now judging her. As she made her rounds, Sotomayor would not answer questions publicly, not even about incendiary charges against her.
UNIDENTIFIED MALE: What do you think of the fact that two prominent conservatives have called you a racist?
BASH: But the majority Democrats, first on her calling card, made a preemptive move to address that controversy figure and prominently in Republican attacks. Her quote from a 2001 speech suggesting as a Latina woman, she would more often than not reach a better conclusion than a white male.
SEN. PATRICK LEAHY (D), CHAIRMAN, JUDICIARY COMMITTEE: I did raise that question.
BASH: Judiciary chairman Patrick Leahy told reporters he asked her about it and he announced her response.
LEAHY: What she said was, of course, one's life experience shapes who you are. But ultimately and completely, and she used those words, ultimately and completely, as a judge you follow the law.
BASH: A senior Democratic source tells CNN Democrats made a tactical decision to have Leahy asks Sotomayor about the controversy so he could portray her answer before Republicans did. Ironically the lead Republican on the Senate Judiciary Committee didn't go there.
(On camera): Did you directly ask her about the comment that she made in 2001?
SEN. JEFF SESSIONS (R), RANKING MEMBER, JUDICIARY CMTE.: No, not directly. We talked about the -- the idea and the concept of personal feelings and -- to some degree.
BASH: He's saving pointed questions for later. He called Sotomayor delightful after cameras captured this.
SESSIONS: You saw Senator Leahy before he got here. And that's -- he's as knowledgeable about this process as anybody that you'll find, that's for sure.
JUDGE SONIA SOTOMAYOR, SUPREME COURT JUSTICE NOMINEE: Next to you, sir.
BASH (on camera): Now Senator Jeff Sessions may have not asked Sotomayor about her controversial comment suggesting a Latino woman would use her experience to make a better decision than a white male but other senators in both parties did. In fact, Democrat Diane Feinstein said when she asked, Sotomayor responded that it was, quote, "poor choice of words."
Dana Bash, CNN, Capitol Hill.
(END VIDEOTAPE)
COLLINS: Another round in a five-year cross-country custody battle. David Goldman remains in Brazil today. Yesterday we told you he was about to get his son back but then a Supreme Court justice blocked a lower court judge's order that would have grant the New Jersey man custody of his now 9-year-old.
Shawn Goldman's mother took him to her native Brazil back in 2004. She remarried and then died in child birth. Shawn has stayed with her family and his stepfather. The full Supreme Court in Brazil will now take up the case.
Rob Marciano is standing by now to talk a little bit more about the weather situation all across the country today. Wet and windy over, what, is it about 50 percent of the country, huh?
(WEATHER REPORT)
MARCIANO: For whatever reason you go out there, I'm still not sure.
COLLINS: Really?
MARCIANO: Well, I know what they are but I will not -- it's a family show.
COLLINS: Oh, my. Wow.
MARCIANO: Well, the last time you went there was for a sporting event and...
COLLINS: That's right.
MARCIANO: I think that good of you to support the causes outside of the gambling houses.
COLLINS: Yes, the UFC fight. They raised a lot of money for the military. And now we've said it. So there you go. Very interesting.
MARCIANO: We've got to see the video of you ringside. That would be something.
COLLINS: Yes, it would be. All right, Rob, thank God we don't have it. Talk to you later.
MARCIANO: OK.
COLLINS: Thank you.
MARCIANO: See you.
COLLINS: President's deadline. He wants a health care reform bill on his desk in two months. Why he's getting pushed back from members of his own party.
(COMMERCIAL BREAK)
COLLINS: While President Obama's traveling overseas, he's left Congress with a challenging assignment. Work on a health care reform package.
CNN's Suzanne Malveaux looks at the challenges facing those lawmakers.
(BEGIN VIDEOTAPE)
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT (voice-over): With 46 million Americans without health care insurance, the battle over reforming the broken health care system is on.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: This is a necessity. This is something that has to be done.
MALVEAUX: The president wants legislation on his desk in two months. But even members of his own party are at odds with him over how to fix it. He invited them to the White House. Some Democrats are calling for taxing employer-provided benefits which President Obama opposes.
UNIDENTIFIED MALE: It was discussed and it's on the table. It's an option.
MALVEAUX: While some Republicans want deeper cuts and benefits, Mr. Obama presented a new White House report that argued reforming health care was essential to turning around the sluggish economy.
OBAMA: If we don't initiate serious reform, 1/5 of our economy is projected to be tied up in our health care system in 10 years. 1/5.
MALVEAUX: Several Republicans dismissed the report as nothing more than a PR campaign. Republican leader John Boehner said in a statement, "This report is nothing more than smoke and mirrors. Everyone agrees that reducing the cost of health care would benefit our economy. But the administration hasn't offered a credible plan to do so without raising taxes or rationing care."
Despite the criticism, President Obama struck an optimistic but urgent tone.
OBAMA: This window between now and the August recess, I think, is going to be the make-or-break period.
MALVEAUX: But even those ready to work with the president seem daunted by the task at hand.
SEN. CHRISTOPHER DODD (D), CONNECTICUT: We're going to have to sustain an effort for more than a decade to get this done.
MALVEAUX (on camera): The president warned expanding Medicare and Medicaid could be difficult if the government doesn't get control of health care costs.
Suzanne Malveaux, CNN, the White House.
(END VIDEOTAPE)
COLLINS: Summer fun for less money? All of the country's national parks will let visitors in for free on three weekends this summer. The park service says it wants to encourage cash strapped families to visit the parks and give a boost to the economy.
All of the nearly 150 national park sites that charge an entry fee will waive them during the weekend of -- ready for this -- June 20th and 21st, July 18th and 19th, and August 15th and 16th.
Mortgage rates are creeping back up. Did you miss your chance to save money? Christine Romans takes a closer look at where the interest rates are and where they may be heading.
(COMMERCIAL BREAK)
ANNOUNCER: Live in the CNN NEWSROOM, Heidi Collins.
COLLINS: On Wall Street, stocks are riding a four-session winning streak but it could come to an end today.
Susan Lisovicz is at the New York Stock Exchange with a preview of what to expect.
I hate doing that, saying all the good news and then saying but...
SUSAN LISOVICZ, CNN BUSINESS CORRESPONDENT: I know, Heidi.
COLLINS: ... maybe not anymore.
LISOVICZ: But you know we have had four sessions of gains. You are wearing green. I am wearing red.
COLLINS: I'm trying.
LISOVICZ: We're going to see red at the open.
COLLINS: Ah.
LISOVICZ: But you know -- it could pass. We've got a lot of economic reports coming out today.
COLLINS: Yes.
LISOVICZ: The factory orders, the service sector, and Ben Bernanke is testifying before congress. So you know we're waiting to see what comes out of all of that.
In the meantime, we continue to look at jobs. Payroll processing firm ABP says 532,000 jobs were lost in May. And while the market has been rallying on the sense the worst is behind us. There's no question when you see a number like that, you are reminded that the jobs market is extremely weak.
And by the way, that number is an improvement compared to the number of jobs lost in each month earlier this year and remember on Friday we get the government report on unemployment for the month of May.
There are more positive signs, meanwhile, coming out of the housing market. Toll Brothers says cancellations are leveling off and home buyer deposits have increased over the past few weeks. That helped Toll to report a narrower quarterly loss of about $80 million.
Finally, Chrysler's emergence from bankruptcy could be delayed. The federal appeals court agreed to hear a challenge by a group of Indiana pension funds opposing the sell of Chrysler's asset to FIAT. The automaker had hope to exit bankruptcy as soon as this week. Check out the numbers. Well, we are seeing red. The Dow is down 39 points. But you know, Heidi, the blue chips are down less than 50 percent this year. They were down 25 percent in March. The S&P 500 and the NASDAQ are up for the year.
So I leave you with that thought, Heidi Collins.
COLLINS: You're trying hard, and I can see that.
LISOVICZ: I'm trying hard.
COLLINS: All right.
LISOVICZ: And I think I've got -- I think I've got something there for you.
COLLINS: All right, very good. We'll watch all the way to the close. Thanks so much, Susan Lisovicz.
One bright spot of the nation's financial crisis has been lower mortgage rates, but that bit of good news may be fading away.
Christine Romans of the CNN Money Team joining us now with a look at the rising rates now.
A lot of people saying, boy, I should have bought, I should have bought while it was down.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: And it sort of related with what Susan was just talking about.
COLLINS: Yes.
ROMANS: With stocks that are doing so well. So investors are putting money into the stock market. It's coming out of the Treasury market, so mortgage rates, which are tied to Treasury rates, are going up. And something's happened, really, Heidi, over the past week and a half.
You've seen a really big jump over the past week and a half, from about 4.81 percent, the 30-year fixed rate, to 5.25 percent. So if you're one of those people out there who is looking to refinance or you're first-time home buyer, you're noticing a difference because this is going to make a difference on what you're going to have to pay every month.
And, in fact, the 30-year fix, around bankrate.com right now. The 30-year fix stands at 5.36 percent. So that mortgage rate has been climbing here over the past week and a half, and it might change your calculation a little bit if you're trying to get in.
Now keep in mind, there is still an $8,000 tax credit for first- time home buyers so that helps. And you have price of homes that are down substantially. So for first-time home buyers, you know, prices nationwide down about 30 percent over the past year. That's still going to be an attractive situation. But there are concerns that if those mortgage rates keep rising, Heidi, it could choke off -- it could choke off what little recovery we've seen so far in the housing market.
COLLINS: Yes, still a long way to go, obviously.
ROMANS: Yes.
COLLINS: Christine Romans, thank you. Appreciate it.
ROMANS: You're welcome.
COLLINS: President Obama is in Saudi Arabia right now. He's talking with King Abdullah about Mid-East peace efforts and Iran's nuclear program. The president arrived in Riyadh just over two hours ago. You can see the picture there. He and the king are meeting one- on-one at the king's farm.
This is just the first stop, though, on the president's trip. Tomorrow, he will be in Cairo, Egypt, to give, what's being described, as a major speech to the Muslim world. And then it is onto Germany and France.
The president isn't stopping in Israel or the Palestinian territories, but those two spots are still the focus of the first portion of this trip.
CNN's Ben Wedeman has more now on what is at the heart of the matter.
(BEGIN VIDEOTAPE)
BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): Friday on the outskirts of the Palestinian village of Naalin --
(on camera): This is really the heart of the manner when it comes to the problem in the West Bank. This town, Naalin is surrounded by Israeli settlement. Every week, there's a protest against the settlements and their expansion and the Israelis inevitably use tear gas, rubber bullets, sometimes its fatal consequences.
(voice-over): It's a weekly ritual, pitting teenaged boys against soldiers. With reporters negotiating their way around it all.
UNIDENTIFIED MALE: Go back. Go, please. Go back.
WEDEMAN: Why? We're journalists. We have cards.
UNIDENTIFIED MALE: You don't have any permission to stand there. Go back.
WEDEMAN: Show me the paper that says --
UNIDENTIFIED MALE: The paper is there. It's there.
WEDEMAN: Go get it. Go get it. Go get it. Go get the paper. UNIDENTIFIED MALE: I can't now because I working.
WEDEMAN: I'm working, too.
UNIDENTIFIED MALE: Go. Go back.
WEDEMAN: Give me the paper.
UNIDENTIFIED MALE: Go back.
WEDEMAN: Give me the paper.
UNIDENTIFIED MALE: What paper? Go back.
WEDEMAN: The paper. Where's the order?
UNIDENTIFIED MALE: Go back.
WEDEMAN: Where's the order? Where is your order? Where is your order? Where is your order?
UNIDENTIFIED MALE: Over there.
WEDEMAN: Where? Go get it for me?
UNIDENTIFIED MALE: Over there.
WEDEMAN: Show it to me.
UNIDENTIFIED MALE: Later. Later.
WEDEMAN: In English.
UNIDENTIFIED MALE: Go back.
WEDEMAN: No.
(on camera): We're supposed to ask for the order. If they seem to close military area, we need to see the documentation; otherwise, they are just trying their weight around.
The question of settlement expansion was a major issue during the recent meeting between President Barack Obama and Israeli Prime Minister Benjamin Netanyahu. The United States would like Israel to stop the expansion of settlements, stop the building of new settlements, but Israel's sending the opposite message.
In fact, recently, it announced that it was going to build a new settlement in the northern part of the West Bank in the Jordan Valley. On Thursday, Israel did announce that it was dismantling one of about 100 so-called illegal outposts. They're outgrowths from settlements.
(voice-over): I ask one man, Jamil, what he thinks about reports President Obama is working on a new peace initiative for the Middle East. JAMIL, NAALIN RESIDENT (through translator): I'm not optimistic, he says. Obama is just the other side of the same coin. The same as Bush. He won't do anything for the Palestinians.
WEDEMAN: While sometimes it looks like a bizarre form of fun and games in a parallel universe, these confrontations are deadly serious.
Among the casualties, a young villager hit in the face with a tear gas canister. While the would-be peacemakers map out brand strategies, this is the hard reality, fought out in the olive grove around this town.
Ben Wedeman, CNN, in Naalin on the West Bank.
(END VIDEOTAPE)
COLLINS: We'll have live coverage of President Obama's speech to the Muslim world. It is now scheduled for tomorrow morning, 6:00 Eastern, 3:00 Pacific. You can see it live right here on CNN.
Send it over to Rob Marciano now. Where is he? There he is.
It's the action cam I think we have on you, Rob. Going to talk a little bit more about some stormy weather across the country, right?
ROB MARCIANO, AMS METEOROLOGIST: Yes. I had my ear out there, Heidi. What was the question?
COLLINS: Stormy weather across the country, you, go!
(WEATHER REPORT)
COLLINS: OK, very good. We'll check back a little later on. Thank you, Rob.
MARCIANO: All right. Sure, you got it.
COLLINS: It began as a convenient store robbery. It ended with an act of mercy. The man left the store with money, but it's not the way you think.
(COMMERCIAL BREAK)
COLLINS: Thousands of Americans, many of them desperate, many of them dying, are seeking questionable medical treatments overseas. And they're spending tens of thousands of dollars.
Drew Griffin of CNN's "Special Investigation's Unit" is here now with details.
So, Drew, we've talk a little bit about different procedures that can be done overseas for apparently less money that in the U.S.
Is this sort of the drive that we're talking about?
DREW GRIFFIN, CNN SPECIAL INVESTIGATION'S UNIT CORRESPONDENT: This is not that. When you talk about medical tourism, which is what you're talking about, it's for procedures, known procedures, transplants, other kinds of surgeries that can be done cheaper overseas.
COLLINS: OK.
GRIFFIN: This not that. This is experimental, unproven. Keep in mind that the family you are about to meet is desperate. They are trying to cure the incurable, which is why they were attracted like so many other Americans to an overseas Web site promising, really, some treatment for an untreatable condition.
(BEGIN VIDEOTAPE)
GRIFFIN (voice-over): We met 8-year-old Sierra Factor and her family amidst an emergency. The seriously ill girl was being transferred to Arnold Palmer Children's Hospital in Orlando.
Sierra has a genetic disease called spinal muscular atrophy, SMA. She also has kidney problems and a restrictive lung disease. Since age 14 months, she's been in and out of hospitals.
SHAYLENE AKERY (ph), SIERRA MOTHER: There's no cure for her disease. All three of her diseases are terminal.
GRIFFIN: In August, Shaylene Akery (ph) will take her daughter to a clinic outside Shanghai and pay $26,500 for six injections of what she believes will be embryonic stem cells. All she knows of the clinic is from this Web site -- stemcellsChina.com.
AKERY: We really are kind of just walking into it blindfolded.
GRIFFIN: Well, that's really scary.
AKERY: It's scary but everybody says that they're so nice over there.
GRIFFIN: Testimonials on the Web site talk of amazing results but also lack any scientific proof. We ask the Chinese Web site for backup to the claims but haven't yet received a reply. Sierra's father divorced from her mother says the testimonials are enough.
GRIFFIN (on camera): We've done a lot of research. Can I ask you where the evidence is that China is working?
A.J. FACTOR, SIERRA'S DAD: On their Web sites, Chinastemcell.com and some of that stuff.
GRIFFIN (voice-over): How can it be true? That's just it. Experts on spinal muscular atrophy and the Food and Drug Administration say there's no evidence stem cell treatment works.
Stem cells show promise, say researchers, but the results are years away. Even so, Lucie Bruijn, head of scientific research for the ALS Association says many with the debilitating ailment known as Lou Gehrig's disease have gone to China, to Peru, and to Mexico for just such treatment.
GRIFFIN: When somebody, a doctor, or anybody says to a patient, "I have a stem cell treatment for ALS that's going to make you better," that's just not true?
LUCIE BRUIJN, ALS ASSOCIATION: No, it's definitely not true. And certainly you hope that that's going to come from an ALS clinician who is very knowledgeable and the likelihood is that they would say there are things being developed and in progress and it's very promising, but we don't have anything to offer you now.
GRIFFIN: But that is not what this man is saying. Dr. Burt Feinerman, on his Web site, says he can treat Lou Gehrig's disease. You might be surprised to learn what else he says he can treat not here in the U.S. but at a clinic in Peru -- Alzheimer's, Parkinson's, cancer, multiple sclerosis.
(on camera): These are very serious, incurable...
DR. BURTON FEINERMAN, STEMCELLREGENMED.COM: Correct.
GRIFFIN: ...that you're treating?
FEINERMAN: Yes. Formally, the doctor would say go home and write your will. We offer not hope, but we offer science and realistic expectations.
GRIFFIN: The International Society of Stem Cell Research says these experimental treatments do not work, and the only thing that should be done if you're a patient is to enter into them without paying for them, because if you pay, you are most likely, as you said, being scammed.
FEINERMAN: I didn't say that.
GRIFFIN: You said 80 percent of the people in this business are scammers.
FEINERMAN: Well, that's true.
GRIFFIN: That seems like good odds you're going to get scammed.
FEINERMAN: I think that when someone makes a decision about having stem cell treatments that they should look at who are the players.
GRIFFIN (voice-over): We will look very carefully at this player who says he is a self-proclaimed expert in stem cell treatments.
(END VIDEOTAPE)
COLLINS: So, Drew, when you look at this, you know, you feel so much for this family and other families who are going through such a difficult time. Emotionally, they want to reach out to anything that they I'm sure believe may offer some hope, but is this false hope?
GRIFFIN: Yes, they want a cure. They want something that says, you know, this little girl will not die.
COLLINS: Of course.
GRIFFIN: That's how desperate that they have become. And so, they get caught up in the promise of stem cell research. And there is a lot of promise. We're just not there yet scientifically. This stuff has not proven to work. And the clinical -- one clinical trial in the U.S. is just getting started to see if it works. But in the meantime, overseas they're claiming that these things -- all we have to do is inject you with this stuff and you'll be treated but not cured, but treated.
And it plays into the false hope of these people. This family will spend $26,500 on the treatment. Another $25,000 just on the travel. That's $50,000 to go over to China in the hopes that something will happen.
COLLINS: Right, right. Now you learned more about this doctor. You learned more about his apparent scientific evidence to back this up. Because I thought it was interesting in the piece when he said 80 percent of the people he admits himself are scammers in this business, but he says he must be the 20 percent that's not.
GRIFFIN: That's right. Eighty percent he says are scammers, including his former partner, right, which he says is a scammer. We've been asking for scientific research from him. Tonight on "LOU DOBBS TONIGHT," we'll follow-up and we'll ask those questions.
COLLINS: OK. Very good. We'll be watching for that. Appreciate it. Thank you, Drew. 7:00 tonight here on CNN.
Drew Griffin of our "Special Investigation's Unit."
Meanwhile, obstructed view of a tourist site. Chinese undercover officers cover CNN cameras with umbrellas. Security crackdown at Tiananmen Square on the eve of a bloody anniversary.
(COMMERCIAL BREAK)
COLLINS: The turmoil for GM and Chrysler means a chance for some savvy buyers to find some pretty good deals right now.
Our Josh Levs is joining us now with more on that.
Hey, there, Josh.
JOSH LEVS, CNN CORRESPONDENT: Yes. Hey, there. You know, you're always looking for a little bit of silver lining, maybe, or at least something out there that can be good for someone in the economic crisis and what's going on. This is really interesting. It's in Cnnmoney.com, and it comes from "Fortune" magazine.
And I'm going to try to show it to you, Heidi, without sounding like a car salesman. So buzz me if I ever start to sound like one.
COLLINS: We have that buzzer on? LEVS: You know what, we need that buzzer up. But this is actually impressive. It shows the best deals you can get out of GM right now, like a 2009 Jeep Grand Cherokee limited.
You're seeing the prices here. Sticker price generally $39,000. People right now are paying $32,000. Let's zoom back out so you can see some of the pictures of these cars.
What I like about these is we're talking about cars that usually don't have these kinds of discounts. "Fortune" checked it's very rare to get these kinds of deals. They're showing different size of cars, different types of cars. You got Sedan.
This one, a four-door sedan, usually $39,000 -- there you go. There's the buzzer. Down to $37,000. So check it out, because obviously if it's an opportunity for you to buy a car. The truth is -- and the big picture, that helps GM or that helps Chrysler if you make the decision that you want to buy a car from one of those companies right now.
COLLINS: Wait. Was that really a Josh buzzer?
LEVS: I don't know.
COLLINS: Did you just adlib that, brilliantly?
LEVS: Where did that buzzer come from?
COLLINS: I don't know.
LEVS: Well, you know what, now, it will be a buzzer for me.
COLLINS: Yes. Oh, yes. We'll bring in that back.
You spoke with an expert, though, about whether it's better to buy a new or used car in this particular market, right?
LEVS: Yes. I know, it's interesting because especially right now, you're finding more and more people turning to used cars. I spoke with an expert from "Consumer Reports" about which is best.
(BEGIN VIDEO CLIP)
JON LINKOV, CONSUMER REPORTS: Lots of deals on new cars. You can go out there and get a lot of incentive money on it. But, you take a huge depreciation hit with a new car. With a used car, someone else has already taken that hit. You have a good value right there in your hands. And by doing your research, you can narrow it down, get a car that has good reliability that will do very well for you.
(END VIDEO CLIP)
LEVS: And see, no one buzzes him.
Heidi, we're hearing from people. Let me show you with a graphic here how you can weigh in. We want to hear from you at the CNN NEWSROOM blog, cnn.com/newsroom. That's how you get straight to Heidi. Or you can weigh in at Facebook -- there you go. Facebook.com/JoshLevsCNN, Twitter.com/JoshLevsCNN.
And Heidi, at your blog page right here. We're already starting to hear from people.
I can show you one of them right here. Jen wrote us, "She just bought a brand new 2009 GMC truck three weeks ago."
So there are people making the decision to buy from the companies right now, and hopefully, you'll find some deals there -- CNNMoney.com.
COLLINS: All right. Very good.
Josh, appreciate it. Thank you.
LEVS: Thanks, Heidi.
COLLINS: Quickly, we want to get to our Congressional correspondent Dana Bash with some news just coming in to us now.
Apparently, Dana, regarding comments made by Newt Gingrich on Sonia Sotomayor.
Is that right?
DANA BASH, CNN SENIOR CONGRESSIONAL CORRESPONDENT: That's right. It's a 180 from Newt Gingrich. You remember, of course, it was Newt Gingrich who was one of the people who raised the R-word, racist, calling Sonia Sotomayor a racist. Well, now he is backing off that. He wrote specifically in op-ed, and I'll read you the operative part of what he said.
Newt Gingrich said, quote, "My initial reaction was strong and direct, perhaps too strong and too direct. The sentiment struck me as racist and I said so. Since then, some who want to have an open and honest consideration of Judge Sotomayor's fitness to serve on the nation's highest court have been critical of my word choice. With these critics who want to have an honest conversation, I agree. The word racist should not have been applied to Judge Sotomayor as a person even if her words themselves were unacceptable."
So there you see Newt Gingrich backing off an explosive term that he used that really did change the debate and change the dynamic away from what many of the Republicans who actually get to vote, Republicans here in the Senate wanted. One of those republicans is Jeff Sessions.
He is the lead Republican on the Senate Judiciary Committee. When this came across our e-mail on my BlackBerry, I happened to be interviewing him for a story I was doing on him. And I asked for his reaction. Listen to what he said, Heidi.
(BEGIN VIDEO CLIP) SEN. JEFF SESSIONS (R), RANKING MEMBER, JUDICIARY COMMITTEE: I'm very glad he backed off. I think that's unusual that commentators do that. And I think it was very good that he did.
(END VIDEO CLIP)
BASH: So there you heard. He said that he was very glad, and he thinks that it helped. And that is sort of an operative term that he used "help," because, again, Republicans here, you know, they were trying to keep things low key, they were trying to intentionally try not to make this highly political and show that Republicans were giving Judge Sotomayor a fair shake, if you will, and that didn't happen, in part because of what Newt Gingrich and Rush Limbaugh also said.
So that is the initial quick reaction we're getting from Republicans here on this pretty significant turn around from the former speaker of the house.
COLLINS: Yes. The former Speaker Gingrich also mentioned something about President Obama and his Press Secretary Robert Gibbs having admitted about more of this on her words being unacceptable. That was in the quote too, correct?
BASH: It was in the quote. And what is interesting is actually that Judge Sotomayor admitted that yesterday. She came -- or I should say that Democrat Dianne Feinstein came out of her one-on-one meeting yesterday with the judge saying that she asked the judge about it, and that Sotomayor responded that her use of words -- she had a poor choice of words.
So there's no question that she believes that -- that that is the message that she and the Obama administration -- that they are trying to get out. But, clearly, Republicans here feel that there's a big difference between a poor choice of words and what that might mean for the substance and what really matters in terms of how she will approach her job as a judge, whether she will be fair or not fair, and actually calling her a racist.
COLLINS: All right. Our Congressional correspondent Dana Bash for us on Capitol Hill this morning.
Dana, thank you.
BASH: Thank you.
COLLINS: We're going to take a quick break. We're back in the CNN NEWSROOM in just a moment.
(COMMERCIAL BREAK)
