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Iran Bans Foreign Media; Obama Meets with S. Korean Counterpart; Health Insurance Struggles for Small Businesses; Financial Watchdog Agency to be Proposed; Governors Try to Set Uniform Education Standards

Aired June 16, 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: The future of your health care. We look at what the president's plan means if you have insurance now and if you don't.

The higher costs of texting. Why are your rates rising anyway? A Senate panel wants to know.

And a homeowner with her own foreclosure crisis. Not behind in her payments, but still threatened with eviction.

It is Tuesday, June 16th. Hi, everybody, I'm Heidi Collins and you are in the CNN NEWSROOM.

This morning, two countries with nuclear aspirations. We are watching them closely this morning. First to Iran, where President Barack Obama still vows tough diplomacy despite the violence after the elections there.

And also, CNN's Reza Sayah is on the ground in Tehran this morning. He's going to be telling us a little bit more about this new government offer and also about an opposition rejection.

And then responding to North Korean threats, what to do there. Our Suzanne Malveaux is covering a meeting between President Obama and South Korea's leader. We'll tell you about that.

But first I want to get to this developing story, too. Another piece of General Motors is gone. The troubled automaker is selling off Saab, which is known for its family cars. The buyer, a small group led by a small Swedish car maker. The price includes $600 million in funding from the European investment bank.

General Motors filed for bankruptcy, as you know, earlier this month. It is getting rid of weaker brands to try to reemerge in just a few months.

We do have new developments now out of Iran this morning. Here is what we know. Iran's Guardian Council has agreed to recount some votes in the disputed presidential election. The opposition has rejected the idea asking instead for an entirely new election.

Opposition leader Mir Hossein Mousavi has asked supporters to cancel a rally for today to avoid a clash with the backers of President Mahmoud Ahmadinejad. Iranian TV reports seven people were killed last night after they allegedly attacked a military post in Tehran.

Happening right now, thousands of people crowding the streets of Tehran for a rally to support President Mahmoud Ahmadinejad. The Iranian president not attending, He is in Russia for a security summit.

CNN's Reza Sayah, though, joining us now live from Tehran with more on this.

Reza, good morning to you.

REZA SAYAH, CNN INTERNATIONAL CORRESPONDENT: Good morning, Heidi. We have a very important development that we have to report to you right off the bat. And it's not good news for members of the foreign media, and that includes CNN.

Within the past couple of hours, the Iranian government has decided to ban all members of the foreign media of covering protests and demonstrations, and that includes the ones happening today.

Of course, it was pictures from the foreign media, including CNN, that revealed that some of the brutal crackdowns on these protests over the past few hours. The government had criticized some of those -- some of that coverage, some of those pictures describing them as bias.

And again, within the past couple of hours, they made the decision to ban all members of the foreign media from covering these folks as they made the message very clear to us not to go down there and take pictures of these protests. That obviously makes our job very challenging.

Of course, state-run TV is allowed to do live broadcasts. And what they're showing at this hour is this massive protest demonstration of pro-Ahmadinejad supporters. These supporters describe this demonstration as condemnation of what they call hooligans, referring to the Mousavi supporters who vandalized parts of the city ever since election day.

And with this demonstration, we have a little bit of a volatile situation. Because at 5:00 p.m., about 30 minutes ago, you also had a pro-Mousavi demonstration.

COLLINS: That's right.

SAYAH: Within a few blocks. But we understand that demonstration has changed locations. They're still there despite urges from Mousavi to pull back. They're still there. I just spoke with some supporters who are on the scene, but they changed their location in walking towards up town. But certainly a volatile situation, Heidi.

COLLINS: Yes, and Reza, hang with me just for a little bit here. Because, obviously, we are just getting this news from you now. Once again reminding everybody that Iran is apparently banning foreign media now. State-run TV is still going to be showing, I guess, whatever the current government wants them to show?

I mean the timing of all of this doesn't really bode very well, does it? For a free society and for the actual election allegations of voter fraud going on? I just am trying to get a full picture here of what exactly this means.

SAYAH: Well, the government adamantly denies all allegations, all accusations of voter fraud, and we should note that during the past few days, especially yesterday, you had this mass protest, this mass demonstration of Mousavi supporters.

And we've been monitoring state-run television, and as you might expect is not a lot of coverage of those types of protests. The pro- Mousavi types, the protests. In fact when they do report on it, they report that not a lot of people have showed up and they're just pockets of demonstrations.

But today, in contrast, they are giving live spread wide live coverage of a lot of people that have turned out for Ahmadinejad. These are his supporters, waving the Iranian flag that has come to be the symbol of his campaign. They're chanting "Death to America, Death to Israel."

They had a chant for the supreme leader saying "We are all your soldiers" and "We await your orders." No pictures of the Mousavi demonstration, the Mousavi gathering, but some witnesses on the ground that we've been speaking with that's happening.

COLLINS: All right. Understood. Reza Sayah, breaking the news for us this morning. No more foreign media, at least, at this time in Iran.

Reza, thanks so much.

I want to take a closer look now, too, at the group agreeing to recount some of these votes known as the Guardian Council Its 12 members include clerics and experts in Islamic law. The council is closely aligned to Iran's supreme leader Ayatollah Ali Khamenei.

Now, it serves as a constitutional watchdog and vets candidates running in elections. It certifies ballot results and is also -- has the apparent authority to nullify an election.

President Obama now talking about the violence following the disputed Iranian election. In his first public statement, the president spoke to reporters late yesterday after a White House meeting with Italian Prime Minister Silvio Berlusconi.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: I am deeply troubled by the violence that I've been seeing on television. I think that the -- the Democratic process, free speech, the ability of people to peacefully dissent. All those are universal values. And need to be respected.

(END VIDEO CLIP)

COLLINS: President Obama focusing on the North Korea nuclear threat this morning, as well. The president hosting a meeting with South Korean President Myung-bak, and CNN's Suzanne Malveaux is joining us now live from the White House with more on this story.

So Suzanne, what exactly will he be discussing with the South Korean leader?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Heidi, as you can imagine, really, the top issue here is the nuclear threat that's posed from North Korea's neighbor. And so that's really what they're putting at the top of the agenda.

We expect that the United States, the administration is going to clearly make a commitment once again to South Korea to protect that nation militarily if, in fact, North Korea ends up attacking it at some point.

We also expect these two leaders in the united front to come out and condemn the nuclear tests that have been conducted recently by North Korea, and also to really say that there is going to be some teeth behind those U.N. Security Council resolutions, those sanctions slapped against North Korea.

The interdiction, if you will, the interception of some of those North Korean ships that they believe could be carrying nuclear materials, that there's going to be some sort of action that is going to be taken. All of that together.

The other thing, Heidi, you should know, is that the South Korean president is meeting with the treasury secretary, with the U.S. trade envoy. There are free trade agreements that are out there that have not yet been ratified. Both sides see this as an opportunity, as well, to improve economic conditions between the two countries, whether it's issues over beef or the car industry that there are ways that both of our economies can improve and actually help each other out if we open up a free trade.

COLLINS: I have to wonder if the fate of the two American journalists could come up.

MALVEAUX: I asked the senior administration official about that this morning. And they are trying very, very carefully to say that is a separate issue, it's a humanitarian issue.

As we know, the two journalists Laura Ling and Euna Lee who were sentenced to 12 years of hard labor for supposedly illegally entering North Korea. There's an AP report saying they admitted that. Senior administration officials say they don't know if that's true necessarily but that's a humanitarian issue, not connected to the sanctions. But don't be surprised, Heidi, the senior administration official is saying that that is one of the things that comes up in these discussions between these two leaders.

COLLINS: Yes, we know all along that's what the administration has been trying to do to keep them separate. So, all right, we'll continue to follow that.

Thanks so much, Suzanne Malveaux, this morning.

Now the President Obama and the South Korean president will probably be making some comments this morning about the North Korean threat. We, of course, will have those comments, if they do come our way, live around 11:35 a.m. Eastern.

As concerns grow over North Korea's ability to reach the U.S. with ballistic missiles, supporters of a missile defense system are making a new push. Beginning this hour on Capitol Hill, the Senate Armed Services Committee will hear from the director of the Missile Defense Agency, Lieutenant General Patrick O'Reilly. Also testifying, Joint Chiefs Vice Chairman General James Cartwright.

An e-mail about the president a lot of people say is racist. Why a state senator's aide may find her attempt at humor isn't getting a lot of laughs.

ROB MARCIANO, AMS METEOROLOGIST: I'm Rob Marciano in the CNN severe weather center, almost 20 reports of tornadoes yesterday, another severe threat today, and flooding in St. Louis, all coming up when the CNN NEWSROOM comes right back.

(COMMERCIAL BREAK)

COLLINS: In Tennessee, some Democratic legislators want more disciplinary action taken against a Republican aide who sent out an offensive e-mail about President Obama. You be the judge.

Sherri Goforth, an aide for Republican state Senator Diane Black, sent this e-mail to other staffers using her work computer. President Obama is represented as a pair of eyes in a black background. Some Democratic legislators say the e-mail is racist and want her fired. Senator Black had this to say.

(BEGIN VIDEO CLIP)

DIANE BLACK (R), TENNESSEE STATE SENATE: I want people to know that the communication was sent without my knowledge, and that I absolutely -- this does not reflect my beliefs or my values or my opinions. And I won't tolerate this kind of communication coming from my office.

(END VIDEO CLIP)

COLLINS: Senator Black gave the aide a verbal and written warning. She said the aide is a 20-year-employee with a good record.

Head over to the severe weather center now because Rob Marciano is standing by to tell us a little bit more about some of these thunderstorms that are threatening. What part are we talking about? The central part of the country?

(WEATHER REPORT) COLLINS: The president mentioned him yesterday in his speech to the American Medical Association, but do they see eye to eye? We'll be talking to the man whose struggles where chronicled in the president's pitch for health care reform.

(COMMERCIAL BREAK)

COLLINS: President Obama determined to make sure every American has health care coverage. He pitched his plan to the American Medical Association in Chicago yesterday. The president asked for their support on healthcare reform, including the public insurance option, which the AMA has resisted.

(BEGIN VIDEO CLIP)

OBAMA: Make no mistake, the cost of our health care is a threat to our economy. It's an escalating burden on our families and businesses. It's a ticking time bomb for the federal budget. And it is unsustainable for the United States of America.

(END VIDEO CLIP)

COLLINS: Our next guest agrees with President Obama on one thing, and that is that the time for change in the health care industry is now.

Chris Link is a small business owner from Tennessee. The president actually mentioned his struggles by mentioning his name during the speech yesterday.

Thank you for being with us, Chris. So listen, you, as we have said, are a small business owner, obviously.

CHRIS LINK, SMALL BUSINESS OWNER: Yes.

COLLINS: When we're talking about health care insurance, very expensive for you to provide for your employees. In fact, you've had to lay several workers off. Tell us a little bit more about your story and your struggle.

LINK: Yes, we are a small business here in Nashville, a promotional marketing company. And we have provided health care benefits for our employees now going on 15 years. And with the economic downturn toward the end of last year, we really had to start looking at the budget.

Health care has been an issue every year with higher premiums as we negotiate the renewal for the coming year. And this year, it was especially difficult. In looking at where we could cut, we basically cut everything we could. And what really stood out for us was as we attempted to balance our budget so to speak, we, again, were reminded of how much we were paying for health care premiums.

COLLINS: Yes.

LINK: And almost the amount there that we were paying would help us resolve our budget issues. So the temptation was to just cut healthcare altogether.

We decided not to do that. We kept it in place, but as the year wore on and into this year, we ultimately ending up having so to speak, we, again, were reminded of how much we were paying for health care premiums, and almost the amount there that we were paying would help us resolve our budget issues.

So, the temptation was to just cut health care altogether. We decided not to do that. We kept it in place. But as the year wore on and into this year, we ultimately ended up having to lay folks off.

COLLINS: Yes, understood. Something like 12 people or so, which...

LINK: Yes, ma'am.

COLLINS: There's an awful lot for a small business. Quickly, you know, there are two things that you can help us here with specifically as a representative for small business. What do you need, insurance-wise, first and foremost, in order to solve the problem that you have?

LINK: Well, the bottom line is cost. We need premiums that are affordable. And right now, that's just not possible. Every year when we come up on renewal, we don't have a whole lot of options.

In fact, I jokingly refer to our options as being bad, worse and worst. And we pick among bad options. So we need more choice. And looking at that, there may be several ways to go about it. We, through the election cycle, and through our work with some local advocacy groups, we've heard about tax cuts, connector systems where we might be able to join with other small businesses to pool, and also the public option.

The public option is getting a lot of discussion now, and while we are respectful of business interests who don't want to see the government take over healthcare, and I was very proud to hear the president yesterday address that specifically, we think that a public option at this point, our government involvement to some extent may be necessary to get the kind of competition in the system.

COLLINS: Right.

LINK: In the market that will give us real choices that will give us real choices.

COLLINS: And also, quickly, tell us last thing here about what it is that your employees are telling you they want by way of insurance.

LINK: Yes. It's all about cost. They have to pay higher premiums, less is covered, more comes out of their pocket, and for the first time in a long time, this year, we've asked them to contribute more. So we come to them with, again, the best of bad choices.

COLLINS: Yes. LINK: And they would like flexibility. We have one plan now to offer them. There's really nothing else. They're struggling, we know that when they go to the doctor, that's not the end of the story. They have to go to the pharmacy.

COLLINS: Yes.

LINK: Prescriptions are expensive. It is. It all obviously very, very expensive and we certainly appreciate your story here today as a representative of a small business owners of America.

LINK: Glad to do it.

COLLINS: Chris Link, thanks so much. Appreciate that.

So what exactly is President Obama's plan? And will it help people like Chris Link? Let's go ahead and bring in our chief medical correspondent Dr. Sanjay Gupta to talk a little bit more about this.

So you heard, you know, what Chris was saying. It's so expensive in order to get insurance. Everybody kind of knows that. But what does this new plan really mean for the insured and the uninsured? There's a lot of them, 46 million.

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Right, and the right answer is we don't know yet because a lot of this is being debated. And you heard Chris talk specifically about this public option as part of a private system.

So people who had healthcare insurance, like you have healthcare insurance, the president saying it wouldn't change for you.

COLLINS: Yes.

GUPTA: But for the people who were uninsured, he would have this other option as part of the health exchange. What is interesting is that if you look at polling across the country, about 70 percent, 69 percent of people say we would be in favor of some sort of governmental intervention if it was guaranteed to lower cost and increase access. But there are no guarantees of that yet for sure.

COLLINS: No. Right.

GUPTA: You know what's interesting to me, Heidi, is that -- so much of the discussion sort of revolves around this public-private option. But neither one of these sectors, whether it be Medicare or the private insurance companies are particularly good at lowering costs. They're just not.

COLLINS: Yes.

GUPTA: Health care costs keep spiraling out as compared to inflation. So who knows exactly how this is going to look.

COLLINS: Yes, and there are a lot of critics out there, too, of this whole plan who actually don't believe that, you know, since I have insurance now that cost is going to go unchanged when we all of a sudden start offering much more expanded services to those who don't have them right now. I mean how can that be? How does the math work?

GUPTA: And how do you cover more people and make the cost lower?

COLLINS: Yes.

GUPTA: It's a fair question. And some people will say, look, as soon as you put the public option on the table, you'll start to -- unfairly compete against private insurance companies and that's how government-run healthcare becomes more prevalent. That's what they're saying.

COLLINS: Yes.

GUPTA: People who say you can lower costs and say you do it for prevention. You'd do it through Health IT, you'd it to trimming and spending to hospitals.

COLLINS: We could go on and on. We need three hours.

GUPTA: Yes.

COLLINS: Hey, about a show on it? Love it.

GUPTA: Let's do two.

(LAUGHTER)

COLLINS: OK.

GUPTA: Next week in your show.

COLLINS: All right, Sanjay, we sure do appreciate it. Our chief medical correspondent.

GUPTA: All right.

COLLINS: Meanwhile, also want to thank you for sending your comments on healthcare. The blog has gone crazy on this. Go ahead and keep sending them to CNN.com/newsroom.

In about 90 seconds or so, I'll read to you some of your thoughts. So thanks again for that. In fact, many of you have been sounding off.

(COMMERCIAL BREAK)

COLLINS: So, as we've been saying, a lot of you have been sounding off on our blog health care reform. We've got so many comments in. So, thanks for that. But we want to go ahead and read some of them to you now, as well.

Once again, health care, your complaints and solutions. That's what we are talking about right now. Let's get to the first one here from Jazzy Jazz. He says this, "I believe we need to stop introducing medicine as a career where you can get rich overnight. You can become a doctor. And we need to let future physicians understand that although you could get rich from being a physician, richness is not always having a fat bank account and material things collected all over the world.

Very interesting there. And another one that someone wrote into us from Mark here. He said this, "As an emergency physician, I agree that our healthcare system is broken. However, in order for us to fix this system, we all need to fix all aspects.

My malpractice insurance is $27,000 per year. That's something not everybody understands. He says that the bottom here, if we are going to create a system like this, we need to look at ways to fix malpractice insurance, frivolous lawsuits, and the expense of becoming a physician.

So, again, thanks for all of your comments here. Just a few of them for you. CNN.com/newsroom, and then just click on Heidi. We're back in a moment here in the NEWSROOM.

(COMMERCIAL BREAK)

COLLINS: The Dow finally in positive territory for the year going into yesterday's session and the opening bell there as you hear for today's session. But then the blue chips lost nearly 190 points. The Dow 30 is now back in the red.

I want to get a look at how today's economic reports are going to affect trading. Go to Susan Lisovicz now standing by at the New York Stock Exchange.

Hi there, Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: Hi, Heidi. Well, we have a little bit of ground to make up, but we do have some upbeat housing news to tell you about. And that is sending stocks higher in the first few seconds of trading.

New home construction surged more than 17 percent in May after hitting a record low in April. Year-over-year, though, housing starts are down 45 percent. Meanwhile, building permits, a sign of future activity, rose by a better-than-expected 4 percent.

A reading on wholesale prices, meanwhile, shows inflation is in check. That index rose just 2/10 of a percent last month, much less than expected. A sharp increase in gas prices offset by a drop in food costs.

Over the past year, wholesale prices fell by 5 percent. That is the biggest drop in nearly 60 years. Tomorrow, we'll see how this is affecting prices at the consumer level.

Chrysler group is restarting its first factory since emerging from bankruptcy last week. A Dodge Viper plant in Detroit is back up and running. All of Chrysler's plants have been shut down for seven weeks now, partly due to the bankruptcy. Meanwhile, still bankrupt, General Motors has reached a deal to sell its Saab brand to a small Swedish luxury carmaker. GM is trying to shed brands to get out of bankruptcy quickly.

Heidi, have you ever heard of Koenigsegg automotive.

COLLINS: Indeed.

LISOVICZ: Oh, you have! OK, that's right. Your roots, I completely forget. Well, you know, it just has ...

(CROSSTALK)

LISOVICZ: ... 45 full-time staffers. They hand-make every car, and you know the price tag then if you know this company.

COLLINS: Yes.

LISOVICZ: Oh, well, upwards of -- well, $2.5 million each. And so, they spend a lot of time making those cars. You don't have one in your garage, do you, Heidi?

COLLINS: No. I do not.

LISOVICZ: No. OK.

COLLINS: I do not have.

LISOVICZ: All right.

COLLINS: We're talking about the Swedes, of course, here. Yes.

LISOVICZ: Yes. Exactly, well, they make it lovingly.

What we're looking at the board, we're seeing some modest gains, about 0.25 percent of the three major averages. Off to a good start.

COLLINS: OK, very good. If we can end well, that'll be even better, right?

LISOVICZ: Yes. Exactly.

COLLINS: All right. Susan, we sure do appreciate it. We'll check in a little later on.

LISOVICZ: You got it.

COLLINS: President Obama wants to rein in Wall Street. And tomorrow, he's expected to unveil one idea -- a new watchdog agency.

Our personal finance editor, Gerri Willis, is in New York this morning.

Hi there, Gerri. Any idea what exactly is involved in this?

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Yes, you know, this is really interesting. A new financial watchdog agency is exactly what President Obama's expected to suggest. And this has been talked about for sometime.

In fact, Elizabeth Warren, the woman who heads the TARP oversight committee, a Harvard professor, a longtime consumer advocate, she's been talking about this idea for years. In fact, she wrote a long piece online about it in the summer of 2007.

The basic idea is this -- get rid of the abusive practices against consumers by some of these financial product makers, make sure that their products are safe for consumers and put in place something like a Consumer Product Safety Commission, only instead of looking at, say, toasters and baby car seats, you look at mortgages, you look at annuities, you look at credit cards, life insurance, make sure that these -- these are instruments that people can actually use, that they will be safe.

All right. So, this is not uncontroversial. The industry says it's really going to stymie the kind of new innovation that gives people new products that are even better.

I want you though to hear from Elizabeth Warren herself, who came up with this idea about why this is needed.

(BEGIN VIDEO CLIP)

ELIZABETH WARREN, CHAIR, CONGRESSIONAL OVERSIGHT PANEL: The consumer credit market is broken. There's just no other way to describe it. We now receive credit card agreements that are 30 to 32 pages long. And they're filled with incomprehensible text. That means that I can't look at credit card A, credit card B, and credit card C, and tell the difference between them.

(END VIDEO CLIP)

WILLIS: And, of course, what Warren is talking about there is the kind of incomprehensible statements people get on products, like their credit cards, that are difficult to read, difficult to understand, and have led to problems with people actually making their deadlines for payment because it's just too complicated to figure out.

Now, you should know that there's a bill already in Congress submitted by Senator Dick Durbin that would put in place a five-person commission to do this job, to oversee, to review financial products before they get to consumers. We'll just have to wait and see if that gets a broad embrace from Congress, and if they actually take the president's advice, which he's expected to give tomorrow.

COLLINS: All right. Well, we'll be watching this and see how it all shakes out.

And, Gerri Willis, our personal finance editor -- appreciate that. Thank you, Gerri.

A mishap almost cost a Nevada family their homes. The Espinozas received a legal notice telling them their home was being sold to settle a debt. They made several phone calls, including the bank who handles their current mortgage and the title company. But the couple says neither were of any help. So, they got a lawyer and finally got some answers.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: It's just incredible that a bank was trying to foreclose on your property was not your bank.

IHAB OMAR, ESPINOZA'S ATTORNEY: I've been a lawyer for seven years, doing this particular stuff for about 18 months, and this is the first time I've heard of it. And it was -- what's even more surprising is that nobody stepped up the plate to help this lady.

(END VIDEO CLIP)

COLLINS: In the end, the Espinozas found out the notice was actually about a previous loan from a previous owner that had never been paid off.

I want to get to Iran now and the dispute over who actually won Friday's election. And this news just into us, Iran is actually now forbidding foreign media outlets from covering the rallies today. We'll have more on that coming up in just a few moments here on CNN.

Meanwhile, the Guardian Council -- made up of top clerics and judges -- has agreed to recount some of the votes. But the opposition wants all votes thrown out and just a brand new election. For four days, in fact, supporters of opposition leader Mir Hossein Mousavi have expressed their anger in the streets, often clashing with police -- and sometimes, with backers of President Ahmadinejad. Right now, in fact, both sides are holding rallies in central Tehran.

At least seven people are dead after they allegedly attacked a military post in Azadi Square -- according to reports from Iran- controlled media. This is amateur video shot north of the square yesterday. Earlier in that same place, Moussavi held a rally with 10,000 supporters.

One witness CNN has not identified for safety reasons talked with "ANDERSON COOPER 360." She claims the rally was mostly peaceful but the authorities came down with force.

(BEGIN VIDEO CLIP)

ANDERSON COOPER, HOST, "ANDERSON COOPER 360": I know you have witnessed personally outbreaks of violence, describe for our viewers what you have seen.

"RANA," WITNESS TO PROTEST IN IRAN (via telephone): Yesterday, we started marching towards Azadi Square or Freedom Square at around 3:30. And it was a very peaceful process. We just raised our hands, we raised our hands with the peace sign, and it was relatively quiet. Nobody really chanted anything or said anything.

But then, afterwards, when everybody had circled the square and they were heading home and the crowd was dispersing, people started to hear gun shots. I could hear gun shots coming from the right hand of the square. And people were terrified because the gun shots would not stop.

And then they were all looking in one direction, and I started looking in that direction also. And we could see that the gun shots were coming from a remote building. And the people said that it was from Basijs, or plain clothes security officers.

(END VIDEO CLIP)

COLLINS: The outrage over the Iran election results is not limited to the streets of Tehran. Let's take a look at this.

(BEGIN VIDEO CLIP -- IREPORT)

(CROWD CHANTING)

(END VIDEO CLIP)

COLLINS: This video sent to us by iReporter Amirhossein Imani, who shows students and professors protesting at Sharif University in Tehran yesterday. He describes the atmosphere as unbelievable.

IReporter Reza Khalili was on the scene when this motorcycle was torched. He says protestors grabbed it from a member of President Ahmadinejad's security force.

And iReporter Firooz took these photos at a protest rally where Moussavi appeared. He told us he couldn't believe such a crowd would gather.

Fifty different states, 50 different teaching standards: The push to get every child the same quality of education no matter where they live in the United States.

(COMMERCIAL BREAK)

COLLINS: Happening right now on Capitol Hill -- a hearing on the nation's missile defense program. Let's go and take you there live for just a moment. The Senate Armed Services Committee will hear from the director of the Missile Defense Agency and the Joint Chiefs vice chairman -- John McCain there.

Also, a hot topic on the Hill today: The increasing cost of texting. A Senate committee wants to know why text messaging now costs double what it did just a few years ago. An antitrust panel will take a look at the competitiveness of the communications industry. They say the four major cell phone companies all doubled prices within just a few weeks of each other.

And officials from Rocky Mountain states are also up on the Hill. They are warning about a potential catastrophe this summer if something isn't done to control a mountain pine beetle infestation. The big concern, the House Natural Resources Committee will hear from government and forestry experts who say the devastated pine trees could spark huge forest fires.

(MUSIC PLAYING)

COLLINS: Yes, that pine beetle thing, Rob Marciano. It's certainly no joke. It's not the first time the Rockies have dealt with this, right?

ROB MARCIANO, AMS METEOROLOGIST: No, well, the problem is, is that the winters haven't been cold enough to knock down the beetle population.

COLLINS: Right.

MARCIANO: They've been living there for decades, centuries. But typically, it's cold enough in the winter to deflate the population.

COLLINS: Right.

MARCIANO: But they've been -- they've been doubling basically the past several years. So, yes, it's a big deal. And you spend time out there, I know. And...

COLLINS: Yes, they just look like sticks those trees and then they end up being like timber.

MARCIANO: Exactly. So, it adds to the fire problem also. And one way to deal with them is start control burns, but a lot of people live out there, so, you don't want to get those fires out of control. A big problem. They wish they could have some of this rainfall to, you know, to extinguish the control burn, I suppose.

Heavy flooding across parts of Missouri today. Same areas that got rain yesterday, seeing it now, not only that severe weather infiltrating the I-44 corridor with straight line winds and the thunder and lightning, as well. So thunder, lightning within this squall line that's moving through the watch box -- this is about to be allowed to expire. It's weakening somewhat but holding together all right -- just south of St. Louis all the way down to Fayetteville.

So, this will continue to propagate toward the south and east -- a line moving about 40 miles an hour. Some of the wind gusts could be 50 maybe 60 miles an hour and isolated cells.

Less dramatic weather, but certainly wet nonetheless, down country of -- parts of the Carolinas seeing some -- or the Low Country -- seeing some rainfall this morning. Newark, 45-minute delays; San Francisco, 30-minute delays; and Atlanta getting into the act with 30- minute delays, as well.

Ninety-one degrees is expected for the high temperature in Atlanta. A lot of red on the map down across the south, 98 in Dallas is yes, above average, not dramatically, but it's definitely warm and the humidity will be cranking up a little bit. So, Texas is certainly feeling the heat. Meanwhile, New York City, 69 degrees, not so much feeling the heat there. Temperatures have been fairly chilly for this time of year. Seventy-eight degrees expected in Denver, Colorado; and 97 degrees in Phoenix; and 70 --where they continue to celebrate their world title out there.

COLLINS: Yes.

MARCIANO: Congratulations to the Lakers. You're having a nice day there.

COLLINS: Yes, no kidding. All right. Very good. Rob, thank you.

MARCIANO: You got it.

COLLINS: It's an ongoing debate to legalize or not to legalize marijuana. And hear one woman's story of how she thought medical marijuana was going to help her. But instead, she says, it almost ruined her life.

(COMMERCIAL BREAK)

COLLINS: Deciding what your children will learn in school, state governors are coming together to set uniform standards. But, as Lisa Sylvester reports, it's going to be tough for all 50 states to agree on what should be taught.

(BEGIN VIDEOTAPE)

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): Students from other countries are outperforming U.S. students in math and science. According to a 2007 report, the latest numbers available, the number of students scoring at or above proficient in reading has been dropping since 1992.

Critics say the U.S. school system is failing to prepare kids for college in the workforce. Now, the National Governors Association is trying to draw up new national standards.

DANE LINN, NATIONAL GOVERNORS ASSOCIATION: This is the first time that governors and state commissioners of education have ever come around the table to agree that now is the time to develop a set of common academic standards that do not vary from state to state.

SYLVESTER: The federal program No Child Left Behind requires regular testing to make sure all students reach a learning standard. But it's left up to the 50 states to set those standards. The easiest way to reach their target: set the achievement bar low -- the U.S. Secretary of Education Arne Duncan at an education conference said that has to change.

The administration is devoting up to $350 million to help states develop the new standards that would parallel national standards from other industrialized countries.

ARNE DUNCAN, U.S. SECRETARY OF EDUCATION: Our children aren't competing, you know, down the block or in the district or the state for jobs, they're competing with children in India and China. And we want to level the playing field.

SYLVESTER: But establishing one national U.S. standard won't be easy. Michael Petrilli with the Fordham Foundation, an education think tank, predicts culture wars.

MICHAEL PETRILLI, THOMAS B. FORDHAM INSTITUTE: And the question is, well, are the standards going to include literature? If they include literature, is it going to be all dead white men or is it going to be a more diverse selection of authors? Well, that gets you into other debates.

So, the real question is here is, when the standards come out, are there going to be some serious fights going on in this country, particularly from the sort of extreme right and extreme left once they see those standards?

SYLVESTER: Another obstacle: the cost of change -- new teacher training requirements, new textbooks, and new tests.

(on camera): There are also political concerns, lawmakers and some heads of school districts might be reluctant to find out that they thought students were doing well, only to find out they aren't. But many policymakers and educators say, still, this has to be done.

Dane Linn, with the National Governors Association, said it's time to end this charade and create a system that holds students to a higher standard.

Lisa Sylvester, CNN, Washington.

(END VIDEOTAPE)

COLLINS: Late-night talk show host David Letterman, has apologized again to Alaska Governor Sarah Palin and her daughters. Last night during his monologue, Letterman said he was sorry for the off-color joke he made that Palin's daughter was knocked up by Alex Rodriguez at a recent Yankees game.

(BEGIN VIDEO CLIP)

DAVID LETTERMAN, HOST, "LATE SHOW WITH DAVID LETTERMAN": I told a bad joke. I told a joke that was beyond flawed and my intent is completely meaningless compared to the perception. And since it was a joke I told, I feel that I need to do the right thing here and apologize for having told that joke.

So, I would like to apologize, especially to the two daughters involved, Bristol and Willow, and also to the governor and her family and everybody else who was outraged by the joke. I'm sorry, and I'll try to do better in the future. Thank you very much.

(APPLAUSE)

(END VIDEO CLIP)

COLLINS: Here now, Governor Palin's response to Letterman's apology: "Of course, it is accepted on behalf of young women, like my daughters, who hope men who joke about public displays of sexual exploitation of girls will soon evolve. Letterman certainly has the right to joke about whatever he wants to and, thankfully, we have the right to express our reaction."

As you know, there is an awful lot going on this morning and CNN crews are in place to bring it to you.

Let's begin this morning with Allan Chernoff in New York now.

Hi, Allan.

ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: Hi, Heidi.

The FAA is promising new rules to improve safety at regional airlines. I'll have that story at the top of the hour.

SUZANNE MALVEAUX, CNN CORRESPONDENT: I'm Suzanne Malveaux at the White House, where the president is going to be meeting with the president of South Korea. The number one item on the agenda, that is the neighbor North Korea and its nuclear threat. I'll have more on that on the top of the hour.

POPPY HARLOW, CNNMONEY.COM: And I'm Poppy Harlow in New York. New construction, here's a positive sign, that surged 17 percent last month. The big question: Is the worst over for the U.S. housing market or is it there further to fall? We'll tell you what top economists say -- coming up, Heidi, at the top of the hour.

COLLINS: All right. Very good. Thanks so much, guys.

Also, they played a key role in World War II. We'll show how the government is finally paying them tribute.

(COMMERCIAL BREAK)

COLLINS: This week, "AC 360's" Anderson Cooper is taking an in- depth look at pros and cons of legalizing marijuana. And Randi Kaye shares the story of one teacher who says she not only became addicted to medical marijuana, but it nearly drove her to suicide.

(BEGIN VIDEOTAPE)

RANDI KAYE, CNN CORRESPONDENT (voice-over): When this California schoolteacher was diagnosed with bipolar disorder nine years ago, she decided to medicate with marijuana. She asked us not to identify her, so we'll call her "Lisa."

Lisa found a doctor online to recommend medical marijuana. She showed me how easy it was.

"LISA," BECAME ADDICTED TO MEDICAL MARIJUANA: Yes. You just type in "finding medical marijuana doctor," and a list of Web sites will pop up.

KAYE: Before she started using medical marijuana, Lisa says depression would keep her in beds for weeks. She also had thoughts of suicide.

Medical marijuana was supposed to make life better for her, but, remember, once she got the paperwork, Lisa could buy as much marijuana as she wanted at the California dispensaries and it was all legal.

"LISA": "Here's a free gram for coming. And you can try this blend or this blend. In fact, we have plants over here if you'd like to buy some clones to grow your own. We're going to thrown some edibles for you. You're going to give you some cookies and give you some brownies, you know, just for being such a good customer."

KAYE: Lisa had smoked marijuana before for fun. She says she never imagined she could get addicted. But this was so easy to buy. And the better it made her feel, the more she wanted to smoke. Lisa became hooked, spending as much as $1,000 a month on the drug.

(on camera): What does that translate into?

"LISA": It's about seven, eight joints a day.

KAYE: Eight joints a day you were smoking.

"LISA": Yes, bong rip. I would wake up in the morning and have a nice bong rip. And then I would, on the way to work, I would smoke. I would leave during my break and smoke. I would smoke on the way home, I would smoke all night long.

KAYE (voice-over): Psychiatrist Denise Greene didn't treat Lisa. In fact, she says Lisa should never have been approved for medical marijuana.

DR. DENISE GREENE, PSYCHIATRIST: Long-term side effects of chronic marijuana use, psychologically, are depression and anxiety. So, anyone who certainly has underlying psychiatric illnesses should not be using marijuana on top of that.

KAYE: Adding to the problem, Dr. Greene says, medical marijuana isn't dispensed or controlled the way other medications are. There are no limits and no fine print for how to take the drug.

GREENE: It's not a standard prescription. It's not like, you know, smoke one joint every eight hours for pain and the prescription says you can get 12 joints.

KAYE: Lisa hit rock bottom two years ago. The marijuana had started to affect her negatively. Her mood swings became more extreme.

In June 2007, she found herself on the verge of suicide. Her parents called police, had her rushed to the hospital. That was the last time Lisa ever touched the stuff.

"LISA": It saved my life for a long time, and then it stopped saving my life and started killing my life.

KAYE: Today, Lisa has been clean two years. She goes to meetings at Marijuana Anonymous and takes lithium daily -- a much more controlled way to manage her mood, she says, instead of smoking marijuana whenever she felt like getting high.

Randi Kaye, CNN, Van Nuys, California.

(END VIDEOTAPE)

COLLINS: All this week, an "AC 360" special. Can the U.S. afford to make pot legal? Can we afford not to? "AC 360" is keeping them honest, on both sides of the argument. "America's High: The Case for and against Pot" is an "AC 360" special, all this week - 10:00 Eastern.