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U.S. Troops Have Completed Withdraw Out of Iraqi Cities; Investigators Remove Medication From Jackson Rental House; FDA to Vote Today as Officials Debate Ways to Reduce Increasing Number of Deadly Overdoses Induced by Painkillers; Alternative Medicine Becomes Mainstream; Iranian Government Declares Election Valid; Exiled Honduran President Calls on Military to End Clashes with His Supporters; Apollo Theater Holds Memorial Service for Jackson; Freaky Clouds Freak New Yorkers Out
Aired June 30, 2009 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BETTY NGUYEN, CNN ANCHOR: Well, here are some of the other stories we are watching for you right now.
An earlier beef recall is now nearly 10 times bigger. The JBS- Swift Beef Company from Colorado has expanded their recall to 380,000 pounds of beef products. Those products may be tainted with E. Coli. Eighteen people who got sick have been linked to the beef.
The FDA is taking a closer look at combination cold medicines right now, and you may be very interested in this story because they include NyQuil, TheraFlu, even Tylenol that handle multiple symptoms. They could be pulled from the shelves. The FDA is concerned about the number of overdoses associated with one of the ingredients, acetaminophen.
The Chinese government. It's postponing a new computer law. That law was scheduled to go into effect tomorrow. It called for all new computers to be equipped with filtering software, and the software is touted as being an anti-pornography filter, but some say it could filter other things, such as political material.
We're going to get more from Michael Ware in Baghdad a little bit later this hour. You see celebrations are under way after U.S. troops have pulled out of all the major cities there. And we see the grand handover ceremony. U.S. forces completed that pullout.
Well, that means Iraqi security forces are now in charge and patrolling the streets. Right now, we're waiting for a military briefing from General Ray Odierno. He is the commanding general for multi-national forces in Iraq. You see him sitting right there. As soon as that briefing starts, we're going to take you there live, and we will listen to it.
But first, let's go to Washington where CNN Pentagon correspondent Barbara Starr is standing by for us. Barbara, we are waiting to hear from the general and, obviously, today has been a big day as U.S. troops have left those major cities in Iraq.
BARBARA STARR, CNN PENTAGON CORRESPONDENT: It really is, Betty. Everybody has been talking about what a momentous day it is. But let's put one face on all of this, and that's General Odierno himself. This is a man who this is his now third tour of duty in Iraq. During his first tour, up in the north, he was the commander in the area when they finally found Saddam Hussein and pulled him out of the hole.
I think the briefing is about to start.
GEN. RAYMOND ODIERDNO, COMMANDING GENERAL, MULTI-NATIONAL FORCES, IRAQ: As we continue to move towards our objective of a sovereign, secure, stable and self-reliant Iraq. Thirty June, 2009 also marks a significant milestone for Iraq as the Iraqi security forces assume responsibility for security within the cities across the country. It is a day Iraqis celebrate as they continue to move towards exercising their full sovereignty.
In accordance with the security agreement between the United States and Iraq, U.S. combat forces have completed the withdrawal out of Iraqi cities. A small number of U.S. forces will remain in cities to train, advise, coordinate with Iraqi security forces, as well as enable them to move forward. We will also support civil capacity efforts led by the U.S. embassy Baghdad, the government of Iraq and the United Nations Assistance Mission here in Iraq. Outside the cities, U.S. forces will continue to conduct full spectrum and stability operations by with and through our Iraqi security force partners.
Our combined efforts will establish a layer defense as Iraqis secure the cities, our combat forces partnering with Iraqi security forces will secure the belts and borders in an attempt to eliminate safe havens and sanctuaries and limit freedom of movement of insurgents and prevent the facilitation of foreign fighters through the borders. The U.S. is committed to full transparent and continued implementation of the security agreement in a spirit of partnership with the sovereign nation of Iraq.
The Iraqi people should be very proud of the dedication, progress and sacrifice of the Iraqi security forces and the government of Iraq. Their accomplishments in preparing for this day are commendable. The American people can also be very proud, as well, of the soldiers, sailors, airmen, marines and coast guardsmen, as well as our civilians that have worked so hard over the past years and tirelessly and sacrifice so much in helping the people of Iraq progress towards a peaceful and democratic society.
So, with that, I'd be happy to take your questions.
UNIDENTIFIED MALE: Right here, we'll start with Andrew.
UNIDENTIFIED MALE: General, this is Andrew (inaudible) from Reuters. You talked about a small number of U.S. forces remaining in the cities to train and advise. Can you put a figure? How many U.S. forces will remain?
ODIERNO: Yes, people have been trying to get me to say a figure now for about a month. The reason I won't do it is because it's going to be different every single day, and it will be based on how much training and how much advising and how much coordination is required. That will change each and every day.
So, I won't put a number on it. It is a smaller number, a significantly smaller number than what we had in the cities now, but it has very significant missions. Train Iraqi security forces, advise them as we continue to move forward and enable them in order to potentially, if they need, some help with aviation and logistics, et cetera but almost as important, coordinate and help us to continue our situational awareness of all situations within Iraq and that will help us to better support the Iraqi security forces.
UNIDENTIFIED MALE: General, just to follow up briefly, I'm disappointed you didn't give us the scoop after a month of holding out, but I wonder if you could at least give us, you know, is it a few thousand -- if you can give us kind of a ballpark, are we talking about several thousand? Would that be a reasonable ballpark to use?
ODIERNO: Again, there's hundreds of cities around and we have hundreds of -- you know, and I've let the vocal commanders to work this out. To let me give a number would frankly be inaccurate, and I just don't want to do it. There'll be trainers, advisors helping throughout all of the Iraqi cities where we continue to support and advise Iraqi security forces.
UNIDENTIFIED FEMALE: Whatever the number is, how are you going to convince them, basically, the U.S. forces remaining, not to jump in and be helpful where perhaps you would prefer that the Iraqis take the lead? What will be different about what they're told to do in a situation where they might think their first instinct is, "Gosh, we can do that better."
ODIERNO: Well, again, this is, I call it -- we are working on changing our mindsets in the city, and I equate it to when we first started the surge. Where had to change our mindsets of pushing our soldiers back out and get back into the communities and really partnering with the Iraqi security forces and today it's the same kind of thing.
We have to change our mindset. When we're in the cities, there are very specific things we can do. Actually, we have been out of the cities, a large majority of the cities now for the last eight months. So it's really only Mosul and the last remnants that we've had in Baghdad that pulled out ever the past few weeks. So we've actually been implementing this in parts of Baghdad for a very long time. And they understand what their mission is. They understand what we expect them to do.
And, you know, we have worked this very closely with all the leaders in Iraq. I have worked very closely with the minister of defense, the minister of interior and the operational commanders in order to work this out and I feel very comfortable with where we're at.
NGUYEN: And you've been listening to the commander of multinational forces in Iraq, that being General Ray Odierno talking about the handover in Iraq where U.S. forces have left the major cities, giving that control back to Iraqi security forces, although none of those troops will be coming home as of yet. They will be playing a back-up role, a supportive role as they're called upon by their Iraqi security forces. We'll be keeping an eye on this story for you and bring you the latest as things develop.
But in the meantime, so, what do you think about this move? Well, in a new CNN/Opinion Research Corporation poll, we asked about the withdrawal of U.S. combat troops from Iraqi cities and towns, and 73 percent of you say you favor the move. Twenty-six percent oppose the withdrawal and as we said, our Michael Ware is in Baghdad right now, watching the street celebrations. And we'll take you there in about 25 minutes. So for more on Iraq's reaction to the U.S. withdrawal.
But in the meantime, though, U.S. military says coalition air strikes in Afghanistan have killed more than a dozen militants. The attacks in a remote mountains of the Khost province were aimed at militants helping the movements of foreign fighters. The U.S. military says the air strikes also destroyed two command bunkers.
And I want to tell you about this. A car bomb exploded outside a hotel today in the province of Pakistan. Police say four people were killed and six others wounded. You can see the area right there on the map. The bombing is the latest in a string of attacks on civilian targets across Pakistan. The attacks come in the wake of the military's operation against Taliban militants in the country's Northwest. A Taliban faction in that region announced today that it has pulled out of a peace deal with the government leading to concerns of more violence.
The French Navy sending ships and a plane to help look for more survivors from a plane crash. And we've been told today that a young child was plucked from the Indian Ocean today after a Yemeni jetliner went down. The plane had more than 150 people onboard. It was flying from Yemen's capital to the capital of Kormos just last night. Officials say the Airbus A-310 landed, at least tried to land in Maronis Airport but could not. So it made a U-turn before it crashed. The crash is the second involving an Airbus jet this month. The crash of an Airbus A-330 off Brazil still under investigation.
The deposed president of Honduras says he is coming home to retake power. Violence followed the ouster of the democratically- elected President Manuel Zelaya. He was force into exile, that was pretty dramatic and a general strike was called for today. Zelaya is expected to be in New York today to appeal the United Nations for some help. He's already announced a plan to return to Honduras on Thursday to re-take control.
And coming up in about 20 minutes, we're going to talk to an expert on Latin American human rights. I'm going to ask her what impact this coup could have on the United States.
Well, the economy is issue number one, and today we have some more mixed news on what may be your biggest investment. A short time ago, we learned that home prices in 20 major cities have tumbled more than 18 percent from April of last year. Now, here's the good news in all of it that suggests that the housing market may finally be stabilizing. It is the third straight month that the index did not record a record decline.
Let's check out the markets today and look at the numbers. The Dow, looks like the Dow is down 18 points. Still at 8,500. And the NASDAQ, can we get a look at that? Oh, we'll try to get that for you later, but the Dow down just a little so far on the day, but it's still early.
In the meantime though, the death of Michael Jackson and what happens to his three children. Well, a judge issues a ruling for now. We're going to tell you what that is.
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NGUYEN: There is a new twist in the investigation of Michael Jackson's death. Yesterday investigators went to his rented home and removed medication. Also yesterday, Jackson's mother was awarded custody of his three small children. CNN's Ted Rowlands is outside the Jackson family home in Encino, California. And Ted, I understand the children are at that home right now, correct?
TED ROWLANDS, CNN CORRESPONDENT: Yes, Betty. And it's temporary custody for now. Catherine Jackson, Michael Jackson's mother went to the court and said, listen, we have the children. Just allow us to keep them for now and the court said, absolutely. So they have temporary custody. There will be a hearing on that later on. There will also a hearing to the Jackson estate coming up and others undoubtedly will get into both of those, where at least the estate issues, as those come forward.
Now, the investigation continues. It's a death investigation but it's absolutely a very active death investigation. Investigators from the coroner's office along with Los Angeles Police were outside the Holmby Hills home yesterday. That's the home that Jackson rented, where he stopped breathing and they collected two large bags of what they're calling potential evidence, saying it's medical items.
They took them from there and they said they did find prescription medication at the house, and they say the reason they went back is because of information they garnered during the investigation which brought them back. They made a note of saying the family has been very, very cooperative and that they continue to interview witnesses.
The "L.A. Times" reporting they are interviewing more doctors. Remember, Conrad Murray was interviewed over the weekend. Well, now, apparently, more doctors that had contact and potentially wrote prescriptions for Michael Jackson are being brought into this death investigation. So, not a criminal investigation, but an investigation nonetheless that seems to be a very, very active one.
NGUYEN: All right, another question surrounding the will. What do you know about Michael Jackson and whether or not he, indeed, had a will? ROWLANDS: Well, that's a big question. There are reports out that one of Jackson's older attorneys. Not older in age, but one of his previous attorneys has a will from 2002, and in that will Jackson leaves his assets to his mother, his children and a couple of charities. Now, that will hasn't surfaced yet, according to the family. In fact, in their petition to the court, they say they have not seen a will. That, however, would complicate things if it does surface and would obviously addressed by the judge.
As far as custody concerns go, at this point, Katherine Jackson is the only one who has stepped forward that wants custody of the children. And that could change, as well, when you think about Debbie Rowe, the biological mother of two of the children. Thus far, however, Debbie Rowe has not made any public indication that she's going to get into that battle. She has time and she is definitely invited, if you will, to that hearing which is scheduled to discuss the future of the kids.
NGUYEN: A lot going on. Ted Rowlands staying on top of it for us. Thank you, Ted.
You know, fans who bought tickets to Michael Jackson's scheduled concerts will have a choice to make. They could either accept a refund or a commemorative ticket. There are eight designs that include holographic images of the late singer.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: If you're a true fan, you have CDs when you were a kid or, even if you're that old, tapes. So I think that would be more of a memory than a concert ticket.
UNIDENTIFIED MALE: I would want my money back, I think I have to say.
UNIDENTIFIED FEMALE: I'd get the ticket.
UNIDENTIFIED FEMALE: Absolutely the ticket. It's not about the money. I will keep the ticket. I've got one.
UNIDENTIFIED MALE: I want my money back, obviously.
UNIDENTIFIED MALE: Yes, I would hang on to it. Probably be worth more in the future.
UNIDENTIFIED MALE: The ticket.
(END VIDEOTAPE)
NGUYEN: Obviously, mixed reaction there. There were some 50 sold-out shows scheduled to get under way in London in just under two weeks from now. "Billboard" magazine says that about $85 million in tickets were sold.
Later this hour, we're going to go live to the Apollo Theater. Here's a live picture of it right now where Jackson got his first taste of show biz success. Today a memorial service is being held there.
In the meantime, though, talk of pulling well-known cold medicine off store shelves. We have those details that you'll be very interested in today's "Daily Dose." Don't miss it.
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NGUYEN: All right. So, listen up. An important vote at the FDA today as officials debate ways to reduce the increasing number of deadly overdoses induced by pain killers. So they will decide if Tylenol, Nyquil and some other cold medications should be pulled from the shelf. They all contain the pain reliever acetaminophen, which doctors say is a leading cause of liver disease. There are about 200 acetaminophen-related deaths each year. We'll stay on top of that hearing.
Also, the number of sick people seeking a cure or second opinion far from the doctor's office on the rise. Our chief medical correspondent Dr. Sanjay Gupta explores the growing number of people who lost faith in conventional medicine and are opting for alternative therapy.
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: In case you're curious, about a third of Americans turn to either alternative or complimentary medicine when they feel traditional medicine just isn't doing the trick. We're about to introduce you to one woman who started thinking about alternative medicine when her own mother got diagnosed with breast cancer.
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ALIYA WADE, USED ALTERNATIVE THERAPIES FOR CANCER: My crown shock was vibrating.
GUPTA (voice-over): Aliya Wade became interested in energy medicine after her mother died of breast cancer.
WADE: Within the two to two-and-a-half year period, she went from being diagnosed to being gone. She was in and out of surgeries, tried the chemo, and tried everything the conventional way and it didn't work.
GUPTA: Years later when she got her own breast cancer diagnosis, Wade thought conventional therapy was simply not enough. Now, she's not alone. Alternative medicine is becoming mainstream. In fact, nearly 40 percent of U.S. adults are now using alternative therapies either alone or in conjunction with conventional medicine. Some say they do so because they're dissatisfied with main stream care. Many like Wade had more holistic approaches to disease.
UNIDENTIFIED MALE: What most patients are looking for are something they can look for themselves, bringing other things to the table to kind of round out the care that they're receiving
GUPTA: Wade combined chemotherapy with supplements and herbs, hypnotherapy and a technique to stimulate energy called rache. Her hands move and flow across her body to free up blocked energy which some believe spawns disease.
WADE: They are in blockages. They are gone by the time I'm finished.
GUPTA: Yoga, acupuncture, massage, all of them are clinically studied, but therapies like rache while useful are difficult to study.
DR. ROBERTA LEE, INTEGRATIVE MEDICINE PHYSICIAN: It's much harder to make some kind of scientific meaning out of whether an energy treatment is going to be useful or not.
GUPTA: Also difficult, assessing the value of supplements, vitamins and herbs that have not been proven to work.
Unfortunately, we have this sort of mythology that because herbs are natural, therefore, they're safer than pharmaceutical drugs. Any herb that's strong enough to have benefits and many of them do are also strong enough to have side effects and can actually cause problems.
GUPTA: Wade says rache and hypnotherapy alleviated her fear and in some ways, was just as useful as chemo for shrinking her tumors.
WADE: When you're dealing with a potentially life-threatening disease, my opinion is, what do you have to lose?
(END VIDEOTAPE)
GUPTA: Well, I can tell you increasingly over the last couple decades or so, both doctors and hospitals have been embracing alternative and complimentary medicine or integrative medicine more so than before. Actually, combining some of those alternative medicine techniques with more traditional medicine techniques. And there's also been a lot of clinical studies looking that utility of things like acupuncture, like massage, even hypnotherapy. Now one problem still a lot of people out there, is insurance coverage. A lot of insurance company are still mandated that people want these alternative therapies, they got to pay for them out of pocket. Back to you, Betty.
NGUYEN: All right. Well, U.S. troops off the streets of Baghdad and other cities replaced by Iraqis taking over security and celebrating their sovereignty.
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ANNOUNCER: Live in the CNN NEWSROOM, Betty Nguyen.
NGUYEN: Hello, everybody. Welcome back on this Tuesday. You know, it is a landmark day in Iraq. The day U.S. troops have officially pulled out of the cities and towns, leaving the security in Iraqis own hands. We have seen several handover ceremonies and celebrations. You're looking at some of that. General Ray Odierno, commander of the multi-national forces in Iraq, spoke about the historic move just moments ago. (BEGIN VIDEO CLIP)
ODIERNO: Here in Baghdad, you would know there is a significant change inside of the cities. There are thousands among thousands of soldiers that have pulled out of Baghdad. And there hasn't been any soldiers in the cities in southern Iraq. There hasn't been any soldiers in the cities, in Ramani. There hasn't been soldiers in the city of Fallujah for months now and we've been executing this very well. So, again, here in Iraq, you would see it for yourself, there is a significant change.
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NGUYEN: CNN's Michael Ware has been watching the action from the capital in Baghdad and he joins us now. As we heard the General say, Michael, this has been happening for months now. This is just the culmination of it. But at the same time, when you see the celebration in the streets, is it mixed reaction when it comes to the U.S. troops who spent so much time and risked so many of their lives fighting in this cause?
MICHAEL WARE, CNN CORRESPONDENT: You've touched upon what I believe is something of a sensitive issue here. Now, look, first, look at it from the Iraqi perspective. As well-intentioned as it was for the Iraqis, what they feel they've been living under since March 2003 is a foreign occupation. And we're talking about a fiercely proud and fiercely nationalist people. They're tired of having a foreign tanker of any kind in their street. Foreign troops storming into their houses at night and dragging their men folk off to foreign- run prisons.
I mean, that's why they're calling this National Sovereignty Day. Over and over, I'm hearing, "Iraq for Iraqis." So, this is an explosion of that kind of release. One woman said to me, "Finally, I feel liberated."
Now, for the Americans, it's a different story. It's a very -- it's not simple -- it's complicated, mixed emotions. Certainly I know within the U.S. mission here, there is some sense of agrievement that the Iraqis so openly celebrated, that today is a national holiday, that state TV was running a countdown sponsored on its screen to the handover. Anchors draped in Iraqis flags. Some of the Americans here feel that belies the sacrifice that's been made.
Now, four soldiers were killed just yesterday in the last hours of the U.S.-led war. That means that by the end of the U.S. phase of this war, the U.S. command, 4,324 American servicemen and servicewomen laid down their lives on Iraqi soil. And some are uncomfortable with the nature of these celebrations. And, indeed, you know, general Odierno was too busy to attend the official Iraqi ceremony this morning. I think, perhaps, there might be a time for America to pause today. For a moment to take some silence and for America to think about those who lost their lives and gave them voluntarily here in Iraq. Betty?
NGUYEN: Well said, Michael. Let me ask you something very quickly. With this handover, are Iraqi security forces prepared for what's to come?
WARE: Well, they're as prepared as they're going to be. I mean, they certainly aren't the security forces they were several years ago. They're still comprised of large chunks of the militias. Lots of work done to try to reconcile all the sides under one uniform, one banner. But at the end of the day, if things go badly, you will see the men within the uniforms choosing sides.
Also, they simply don't have the combat power to entirely fight the fight they may face. That's why the Americans are staying here. 130,000 troops, American soldiers, Marines, Air Force, Navy are still here. And they are going to be for some time; under President Obama's plan till August, under the agreement the Bush administration signed, they're allowed to stay for another 18 months.
They're underwriting the stability. They're the insurance policy, but, they take it a back seat role. They're in a supporting role now. They can only operate in the urban environments at the behest of the Iraqi government. So, even if they know where there is a bad guy and they want to go out and get something or stop something, they have to ask permission or wait until they're invited, Betty.
NGUYEN: All right. CNN's Michael Ware joining us live from a sandstorm in Baghdad, as we've seen many times. Thank you, Michael.
Here are some numbers that we think are very important when you look at the American involvement in Iraq. There are currently 131,000 U.S. troops in Iraq. Now all of them outside the major cities of Iraq. At the height of the so-called surge, the U.S. had 168,000 troops in the country. As we just heard from Michael Ware, 4,324 U.S. troops have died in Iraq. 31,354 have been wounded in operations there.
Iraq is also opening up bidding for its oil fields to foreign investors. It's the first time the country has opened up the fields to international investors since Saddam Hussein expelled them some 30 years ago. Iraq is offering a total of six oil and two gas fields to international firms.
Time now for an update on Iran's disputed presidential election. After massive protests and outrage, the government now says the vote is valid and the fight is over. A body of 12 clerics say the presidential vote was free of major fraud and stands as valid. So, that paves the way for President Mahmoud Ahmadinejad to be sworn in next month.
We told you earlier about the unrest in Honduras. Well, the exiled president is calling on the military to end clashes with his supporters. Supporters of democratically-elected president Manuel Zelaya have called on a general strike to protest his ouster. Zelaya, meanwhile, is in New York seeking the support of the United Nations general assembly. He has already said he is planning to return to Honduras on Thursday.
We want to find out more about the coup and what it could mean for Latin American as well as the United States. So, joining me now is Joy Olson with the Washington Office of Latin America. First thing I want to get to is how should Americans respond? How should Americans feel about this? Should they be interested in what's going on in Honduras? Why should we care?
JOY OLSON, WASHINGTON OFFICE OF LATIN AMERICA: Definitely I think we should care. If international events around the world have taught us anything in the past few years, it's that strong Democratic states are really important to peace and prosperity for the whole region.
NGUYEN: Okay. President Obama calls the situation, quote "step backwards." Deposed president Zelaya -- he, in fact today going before the U.N. trying to regain power, but if he doesn't -- or say he does. Let's just do that for a second. In theory, let's say he regains power. Will that change this political fight that is occurring within the country?
OLSON: Well, there's an intense political battle going on within Honduras between the president and the Congress and the Supreme Court, and during the ouster the military got involved, as well. It's not going to -- the fundamental conflict isn't going to go away when the president goes back. I think as the president seeks to return on Thursday, they're going to have to be a lot of political discussions with all of the party.
NGUYEN: All this started with a power struggle, and I have to ask you for this. Zelaya's push for power and extended term, how does that compare with what happened in Venezuela and Hugo Chavez?
OLSON: One thing I want to say is that a lot of people try and paint this as about Venezuela or about Hugo Chavez, and I think you have to see this in terms of Honduras and what it means for Honduras. The Honduran constitution permits a term longer than one term -- a presidency longer than one term. It was one of the things that Zelaya was looking for in seeking a referendum to possibly call in the future a constituent assembly to look at rewriting the constitution.
NGUYEN: You say this is all about Honduras, and let's focus on that. But at the same time, isn't Zelaya and Chavez -- aren't they close allies?
OLSON: Sure. There are many political alliances within the hemisphere, but what I think is important to note here, is that every single president in the hemisphere, including Barack Obama, has said this was a military coup, that they've said that Zelaya is still the recognized elected president of Honduras. So, there's great unity in terms of what should happen right now.
NGUYEN: So, you're telling me that there's no question in your mind that Chavez is not behind this and he has nothing to do with this whatsoever?
OLSON: No, I think this was -- well, clearly, he was not behind the coup. The coup was done by the military. The military came in and took the president out of his house in his pajamas on Friday morning and had him flown to Costa Rica. NGUYEN: This is the first coup since the end of the Cold War. Is this going to be, I guess, a touching point where it tips off other Latin American countries to follow suit, perhaps?
OLSON: Well, I definitely hope not. It was interesting following an Internet discussion between security analysts in the hemisphere, and they were all just incredibly disturbed and disappointed and wanted to make sure that this is not a wave of the future.
NGUYEN: All right, Joy Olson, Washington Office on Latin America. Thanks for your insight today. We appreciate it.
OLSON: Thanks for having me.
NGUYEN: Well, the report just out on home prices showed decline but also signs of optimism. Our personal finance editor Gerri Willis joins us now to break down the numbers. All right, give them to us.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Hi, Betty. Yes, we have some signs of stabilization, as you're saying. This is the S&P Case-Shiller home price index, and the numbers come out each and every month.
Let's look at April. Their 20 city composite down 18.1 percent. That's year over year. Look at the previous month, though. Those numbers down 18.7 percent. A little better improvement. A little improvement there for home prices.
Let me just show you how bad this has been, Betty, over time. Prices have fallen month-to-month every month since July 2006. You look at the month-to-month numbers this time around. Down 0.6 percent and that's compared to 2.2 percent down. The previous month -- you can see we're getting a little improvement and a lot of people out there looking for houses now that prices are so low.
Let's take a look, too, at some of the worst-hit cities this month, and there's no surprise here. Phoenix down 35 percent, Vegas down 32 percent and San Francisco down 28 percent. Really, what we're looking at here is the Sun Belt cities really getting hit the hardest. Let me give you an example to put this into some perspective here. Phoenix, you see, down 35 percent year over year, and those prices in that city are down 50 percent -- 50 percent from their peak. Betty?
NGUYEN: All right, so, what does this all say about the housing market? Obviously, it's not doing so well. Are we going to see a bottom any time soon?
WILLIS: Well, I think that's what we're beginning to see glimmers of right now. What could be the bottom, the stabilization in this market. I spoke to the David Blitzer, the chief economist at S&P-K. Shiller (ph) today to talk about, what do you read into these numbers? And he does seem somewhat optimistic about forming a bottom here.
He says don't get too excited. We could go back down again, but this is what has to happen before the market recovers. Prices have to stabilize. That's what everybody is waiting for, Betty. Of course, prices won't stay down forever.
A lot of new people in the market, they're looking this spring. But the improvements we see right here -- even take out the effective seasonality -- spring is traditionally the big buying season. These numbers are showing some glimmers, despite the fact that this is the spring housing market, and you wouldn't expect a little creep up.
NGUYEN: All right. Gerri Willis, breaking down the numbers for us. Thank you, as always.
WILLIS: My pleasure.
NGUYEN: You know, it is a big day in court for General Motors. The automaker faces a key bankruptcy hearing, but will everything go according to plan? CNNmoney.com's Poppy Harlow has the breakdown for us from New York. Hi, Poppy.
POPPY HARLOW, CNNMONEY.COM: Hi, Betty. Will everything go according to plan? It is, as you said, a big day for General Motors. Its attempt to emerge from chapter 11 bankruptcy could hinge on what begins today.
This morning in a bankruptcy court right here in Manhattan, the company is asking the judge to approve the sale of its best assets to be known as a new General Motors. It would be a debt-free company and mostly owned by the federal government, but that plan still faces hundreds of obstacles, from bondholders, from some state officials, and from smaller unions.
Those road blocks could slow GM's hope for a quick exit from bankruptcy, but is the possibility of a total liquidation of GM now out of the question? I sat down with the CEO of General Motors, Fritz Henderson in Detroit at GM headquarters to ask him just that. Take a listen.
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FRITZ HENDERSON, CEO, GENERAL MOTORS: If the bankruptcy process doesn't go successfully, yes. But we have every confidence that the bankruptcy process is going to go, it's going to go successfully. We have the support of the Treasury, both through the bankruptcy as well as (INAUDIBLE) in place.
We're very confident that could be done, but absent that transaction, that would be the outcome. We would have run out of cash. But I think today, Poppy, we're very confident we'll get that job done. The new General Motors will come out and will be there, and that eventuality will not occur.
(END VIDEO CLIP)
HARLOW: All right, so the CEO of GM does not think, of course, they'll see a liquidation of the company, but, of course, Betty, it's a possibility. And if this happens, you could just imagine what that would mean for the state of Michigan.
In fact, the governor of Michigan, Jennifer Granholm told us the biggest road block to recovery in her state would be the liquidation of one of the Big Three. It's a big question and what we're following on CNNmoney today, of course, is what happens in court today. That full interview with Fritz Henderson is right there on the home page, Betty.
NGUYEN: Looking forward to it. Thank you, Poppy.
Michael Jackson headlining at the Apollo. The legendary theater launched his career, and today it celebrates all he accomplished. We'll go there live.
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NGUYEN: Well, on the blog this morning, we're talking about the case of Lieutenant Dan Choi. He's openly gay and learns today whether he will stay in the military. We asked you what you thought. We got a whole lot of comments, about 110 of them so far on our blog. We'll read some of them very shortly. Stay right here in the CNN NEWSROOM.
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NGUYEN: The search for answers in Michael Jackson's death. Here's what we know so far. Investigators say they removed medications from the home where he collapsed last week, and they will not say why. Jackson's mother was awarded temporary guardianship of his three small children. Jackson's parents have filed court papers saying the singer left no will.
Today, the legendary Apollo Theater holds a memorial service for the singer. He was just nine years old when he took the stage with his brothers and won an amateur night contest. CNN's Stephanie Elam joins us now live. Stephanie, what's the plan for today?
STEPHANIE ELAM, CNN BUINESS CORRESPONDENT: Today, it is all about celebrating the life of Michael Jackson here outside the Apollo theater in Harlem. People gathering, 200 people now. Some people got here as early as one o'clock in the morning so they could be here for the memorial service that is going to be led by Reverend Al Sharpton.
People will be able to go in in about groups of 600, go inside, leave their messages for the King of Pop, and also watch a video that is memorializing all he contributed to the American music world. And taking a look at what people are saying, they are really focusing on the positives of Michael Jackson's life. They're not focused on the controversy or allegations of what may have happened in his passing, they just want to celebrate the good things.
You mentioned the last time Michael Jackson was here and performed at the Apollo, he was nine years old. Well, that night, the other person to appear that night was James Brown, and if you recall, the last person to really have sort of an iconic memorial service here at the Apollo Theater -- was James Brown. But a lot more people expected to come out today than came out for James Brown. Nothing against the Godfather of Soul, but Michael Jackson holds his place in global music history. They will go from 2:00 to 8:00 p.m. today Eastern time is when people will be able to go inside the Apollo Theater, Betty.
NGUYEN: We are already seeing them standing in line now. Big day there, big day of celebration and remembrance. Stephanie Elam joining us live. Thank you.
And tonight at 10:00, Anderson Cooper is live in Los Angeles as 360 looks back at the influence of Joe Jackson. What role did he play in Michael Jackson's stardom and mystique? Tonight, 10:00 Eastern.
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NGUYEN: All right. Well, on the blog today, we are talking about Lieutenant Dan Choi. He violated the military's "don't ask, don't tell" policy by publicly announcing he is gay. Today, he will learn if he will be discharged from the military.
But the question is, should he lose his job because he came out and said, "Hey, I'm gay."? That is our question to you, and we are getting lots of answers. First one up from Mario. "He should be removed from the Army. It is simple. He purposely violated a directive, and if President Obama changes the rule later, maybe he could be reinstated."
Let's see what someone else said. Dirk Hedler (ph) said, "No, he should keep his job. His sexual orientation has nothing to do with how well he does his job. Honesty should be rewarded, not punished. What message are we sending our kids with this policy of "don't ask, don't tell"? Lying is okay?" We appreciate your comments today at CNN NEWSROOM blog. And more questions for you to sound off on throughout the week.
The Shelby County medical examiner in Memphis said three more people died because of the scorching heat, and that raises a number of heat-related deaths in Memphis this year to four. Indoor temperatures averaging between 90 and 100 degrees. Memphis has opened cooling centers for those who need help.
So, let's get the latest on this severe weather outside. The heat has just been so difficult these days, Rob, it only seems summer started about a week ago.
ROB MARCIANO, AMS METEOROLOGIST: Yes, but it's obviously felt more like mid-June, July, or August for a lot of those folks. A bit of a reprieve or quelling of the heat across the eastern third of the country. A couple of cool fronts, one going down to the Gulf of Mexico. That is rare for this time of the year. At the very least, dropping the levels of humidity in places that got hit really hard in places like St. Louis and Memphis, as you mentioned.
Cooler temperatures rolling into the western Great Lakes. Temperatures in Chicago may not get out of the 60s, and some of that cool air will instigate some instability across the Northeast, and this is what we're exactly seeing right now. So these showers beginning to rotate in. Not terribly cool across the Northeast, but enough instability where we'll see showers and thunderstorms pop up in the afternoon. Enjoy the sunshine in D.C., New York, while you have it. Later on, things will get more active.
Like we're seeing across parts of the northern peninsula of Florida. Tampa to Gainesville, we are seeing some travel delays at Orlando and Atlanta. The Orlando delay is because of weather ground stop there until 11:15.
Back off to Texas we go, where they're seeing some showers north and west of Austin, but for the most part, it's going to be dry where the heat has been. So, Houston will see heat indexes or heat indices between 100 and 105 today. Another day of stifling hot temperatures, and we'll end with a look at what was yesterday. Austin got to 105, San Antonio 104, and Houston, 102. For Austin, that was the tenth day in a row, Betty, where they reached 100 degrees. Sixteen out of the last 17 days they've gotten up to that figure. Unbelievably hot there in central Texas.
NGUYEN: I know what that is like to feel the Austin heat with the humidity. Man. OK, Rob, hopefully, they'll get a break sometime soon. Thanks for that.
MARCIANO: All right.
NGUYEN: Talking about the heat. What about this, the storm has passed but the clouds linger and what crazy clouds they were. We're going to show you what New Yorkers saw and how they reacted.
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NGUYEN: All right. You have to see this story. A freaky cloud show has a lot of New Yorkers talking and jumping to all kinds of conclusions. Our Jeanne Moos tells us some of their thoughts even included the King of Pop.
(BEGIN VIDEOTAPE)
JEANNE MOOS, CNN NATIONAL CORRESPONDENT (voice-over): No wonder New Yorkers looked up and said...
UNIDENTIFIED FEMALE: Oh, my God.
MOOS: You would say "Oh, my God," too, if you saw this shot in the sports section with the understated caption, "Under ominous skies."
Ominous?
UINDENTIFIED MALE: Mushroom aliens are going to come out of them.
MOOS: People came out on the street to stare. They posed with the clouds on rooftops. The crazy clouds float into the blogosphere with Web sites like Gothomust (ph) and Flickr, featuring the apocalyptic photos. Shots came in from Harlem. Shots came in from Chelsea. Remind you of anything?
The aliens' arrival in the movie "Independence Day." At least New Yorkers didn't crash. They didn't flee. They did what any red- blooded New Yorker would do. They made home videos.
UNIDENTIFIED MALE: I got to say, I don't think I've ever seen anything like that.
UNIDENTIFIED FEMALE: I seriously have never seen clouds like this in my life.
MOOS: Yes, well, they're nothing new for folks who live in areas where there is often severe weather. What do you call them?
UNIDENTIFIED MALE: It's pronounced mammatus.
MOOS: From Latin for "udder."
UNIDENTIFIED MALE: The "mamma" part looks like an udder. What do you see there?
MOOS: I just want to milk them.
UNIDENTIFIED MALE: I don't think you're going to get anything out of them.
MOOS: Some New Yorkers were milking them, all right.
UNIDENTIFIED MALE: Let's have another cocktail right now 'cause I don't know if I can handle this.
MOOS: The mammatus clouds that followed a thunderstorm Friday left some New Yorkers feeling downright romantic.
(on camera): But you didn't have to be a meteorologist to forecast this. Guess whose face was spotted in the freaky cloud formation?
Michael Jackson, say two New Yorkers who sent this photo into the local Fox station. A trained meteorologist would debunk that, right?
You didn't really see anything, did you?
UNIDENTIFIED MALE: I really did.
MOOS: You really did?
UNIDIENTIFED MALE: I saw his nose, his cheeks. It was all fluffy hair.
MOOS: Next thing you know, folks are putting the clouds to music. Of course, not everyone saw Michael Jackson.
UNIDENTIFED FEMALE: Kind of looks like fibroids. MOOS: Jeanne Moos, CNN, New York.
(END VIDEOTAPE)
NGUYEN: Oh, my. Okay. We're done milking that story. On to something more important, U.S. forces have completed the pullout from Iraqi cities and towns. I'm Betty Nguyen. Our coverage of this historic moment continues right now on CNN NEWSROOM with Tony Harris.
