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New GM Driving Forward; Illinois Cemetery Investigation; Obama Meets Pope at Vatican; Security Guards Helped Jackson Get Pills; Janet Jackson Attempted Intervention for Brother; Inquiry Made for Jackson Burial at Neverland

Aired July 10, 2009 - 11:00   ET

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

TONY HARRIS, CNN ANCHOR: It is Friday, July 10th, Beatles Day 2009 in Liverpool England. And here are the faces of the stories driving the headlines today in the CNN NEWSROOM.

CEO Fritz Henderson, he unveils the new GM, fresh from bankruptcy today. The debts are gone, but what about the doubts?

Michael Jackson. New allegations the superstar was taking a mind-boggling number of pills for sleep.

And Pamela Green-Jackson, a "CNN Heroes" nominee. She is tackling childhood obesity one pound at a time.

And good morning, everyone. I'm Tony Harris, and you are in the CNN NEWSROOM.

The new GM driving forward with the commitment to customers, cars and culture. That message a short time ago from CEO Fritz Henderson as his company exits bankruptcy.

(BEGIN VIDEO CLIP)

FRITZ HENDERSON, CEO, GENERAL MOTORS: At the new GM, we need to make the customer the center of everything, and we're going to be obsessed with this, because if we don't get this right, nothing else is going to work. It's that simple.

With the quality gap substantially eliminated, one of the new frontiers in the automotive industry, we think, is going to be customer service, true customer service, which makes it that much more important that we make the customer the center of our universe. We're committed to listening to our customers, responding to consumer market trends, empowering the people of General Motors who are closest to the customer to make decisions, and seek opportunities every day for direct communication between our customers and employees at every level, starting with me.

(END VIDEO CLIP)

HARRIS: All right. Joining me to examine the new GM, CNN's Stephanie Elam, live at the New York Stock Exchange.

Stephanie, good to see you.

Automotive analyst Lauren Fix -- we've got to turn your microphone up just a little bit -- Laura Fix with us from Buffalo.

And let's start with you, Stephanie. If you would, break down the nuts and bolts of what we heard from Fritz Henderson this morning.

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Oh, sure, Tony. Let's start with the basics.

All right. GM has indeed exited Chapter 11 bankruptcy protection. This moves comes after a very speedy six-week journey for the automaker through that process. It's now leaner, it's virtually debt free, and it's about 61 percent owned by the government.

As we heard Fritz Henderson saying, the company has three priorities now -- customers, cars and culture. Really focusing on making the customer the center of the brand, also making cars that people want, and growing a culture that people want to be a part of.

Now, there's four brands that they're keeping. That will be Chevy, Cadillac, Buick and GMC. About 4,100 of its 6,000 dealerships will remain with the new company. The other 1,900 will close over the next 14 months.

And we also heard Mr. Henderson saying there's a lot of talk about working with the remaining dealers to improve customer service, but one thing we can definitely tell you, there will be more job losses ahead. GM is closing 16 U.S. plants. That means the company will axe about 20,000 of its remaining 88,000 jobs in the U.S. So, that's really a big axe that they're making there, and that's by the end of the year -- Tony.

HARRIS: All right.

How will the new GM -- and Lauren, I'll ask you this in a second, as well.

How will the new GM, Stephanie, differ from the old one?

ELAM: Well, for one thing, like I was saying, it's really going to be about the customer here. It doesn't matter if you make a great product if no one wants to buy it. You have got to get people in there, and they've got to go ahead and change that perception that many people have that American cars are not built as well as other cars in the world. So that's one thing that they're going to be working on there.

Henderson saying they're planning to launch a "Tell Fritz" Web site that he's promising to respond to every day. Henderson also says he plans to hit the road next month to listen to customers' questions and concerns -- and this will be global operations that he's going to be doing this for. It's also about going back to what GM is great at and what he called exciting customers.

Overseas sales, for example, if you take a look at China, it's very strong there. And they're saying they want to bring that back to the U.S. And also, selling cars on eBay, they're trying that out in California. HARRIS: Are they really?

ELAM: No word yet if there will be free shipping involved.

HARRIS: You know what? Just stop it.

All right, Stephanie. Appreciate it. Thank you.

Hey, let's bring in Lauren Fix. And Neal Boudette is joining us. Neal, as you know, is "The Wall Street Journal's" Detroit bureau chief.

Neal, good to see you.

Lauren, good to talk to you.

All right. Let's work through this.

Fritz Henderson announcing that GM is emerging from bankruptcy. OK. We get that.

Let me start with you, Neal.

Did you hear anything in the plan that you believe will lead the new GM to profitability?

NEAL BOUDETTE, DETROIT BUREAU CHIEF, "THE WALL STREET JOURNAL": Well, no. At this level, where the market is now, we're selling at a rate of about 10 million cars a year. Really nobody in the United States is making money. So, no, that is not going to do it.

What GM will need to make money is for the economy to come back and for the auto market to get from 10 million up to closer to 12, 13 and maybe even above 13 million to start making money. But Henderson is talking about a cultural change. That is a very, very important move for the company.

HARRIS: Yes. What's his argument? What's that cultural change that he was talking about this morning?

BOUDETTE: Well, you know, if you go back to the '50s and '60s, GM was a really hot company. They were the largest company in the world. At one time, were the most profitable. And people looked at GM the way people look at Toyota or Microsoft or Google today, and they were risk takers.

Remember, this is the company that invented tail fins and came up with the small block V8. They took a lot of chances. Henderson wants to get back to that. In the last 10 years or so, GM became a very conservative, very risk-averse company. He wants them to be more daring in the way they run the company.

HARRIS: And Lauren, weigh in here. What did you hear this morning? Anything encouraging from Fritz Henderson? And how soon -- did he articulate a plan to you that will lead the company back to profitability? LAUREN FIX, CONTRIBUTING EDITOR, "MOTOR TREND": Well, I think it's going to be a big challenge. You're looking at $48 billion in debt which they claim they want to pay back in the next few years. That's a lot of money.

They're talking about 10 new models to be coming out in the U.S., and 17 additional will be worldwide. So, there should be some additional product.

I'm curious what the product is going to be. I'm really concerned about the government being involved, even though they claim they're not going to be involved.

I mean, they are saying green cars, and we're going to have better fuel economy, but the cost of gas continues to drop, jobs are being cut. There's another 4,000 jobs, salaried jobs, that are going to be cut at General Motors. You start adding that up and then it gets to be a lot. I mean, these are things that, consumers won't buy cars if they don't have money, and then even with the "cash for clunkers," it's still not going to help consumers necessarily buy GM cars.

HARRIS: Whoa. Well, wait a minute. Well, I want to get to "cash for clunkers" in a minute, but you mentioned something that I want to jump on right away.

Lauren, let me start with you.

And then Neal, I'll come to you with the same question.

Is Fritz Henderson -- you talk about who's going to run the company -- is Fritz Henderson the man for the new GM? Look, my understanding is he is a career GM executive with virtually the identical career path and trajectory as Rick Wagoner, who's gone now. Is the old guy -- pardon me -- the right guy for the new GM?

Sorry.

FIX: Well, that's an interesting question. I mean, I guess you've got to have someone involved in the company who knows something about automotive.

Traditionally, any company who brings in a bunch of outsiders -- and that includes Mr. Whitacre, who is coming in -- he's a very smart man. But you know, if you don't know the auto industry, it's going to be really hard to operate in the auto industry. And this has traditionally happened -- I can think of three or four companies, including a few right now, where they have brought in outsiders, and they've cleaned house, cleaned out everyone, brought in their little people and a staff, ,and it hasn't worked.

So, I think we need to have Fritz, or at least someone who's got some automotive experience to get involved and say, listen, this is what we've done in the past, it hasn't worked, and I'm willing to make some change. And he seems like he's the man.

HARRIS: OK.

And very quickly, I just want to remind folks of what they're seeing in the lower right-hand portion of the screen. Obviously, this is President Obama meeting with Pope Benedict XVI. Of course we will be following this story throughout the morning, as the president wraps up his visit to Rome, to Italy, for the G8 Summit, and then makes his way to Ghana.

Neal, to you now, is Fritz Henderson the man to run the new GM?

BOUDETTE: Well, I think it's important to note, while he is a GM lifer, he is a very different person than Rick Wagoner, who was the CEO who led GM to this point of filing bankruptcy. And the big key is the board.

The board is being reconstituted. Ed Whitacre, former AT&T executive, is now the chairman, and there are several other board members appointed by the U.S. government and others. And the board is the key.

In the past, the GM board was very passive, rarely challenged executives, rarely took a skeptical view. This new board is going to be very tough on Fritz Henderson.

If he comes out with a projection that they're going to keep 20 percent market share, the board will probably challenge him -- prove it. What happens if it goes below 20 percent? That kind of challenging from the board was not happening before.

HARRIS: OK.

Lauren, brass tacks, nuts and bolts here. I've heard people say that, you know, the government in all of this, the government didn't save GM. The government didn't build or sell a car. The government didn't save a job.

What is your take on that, that the government didn't save GM?

FIX: I think that it turned out to be a lot more than President Obama and the automotive task force even planned. I think their initial thought was, they're too big to fail. But in reality, when you look back at the big picture of how many people lost their jobs -- and the amount of people that are unemployed in Detroit and across Michigan state and across the country that are being affected by this, everybody is being affected by it. And it sounds to me that they could have had other plans, and I don't think that getting the government to own 60 percent of a company where they don't build cars -- they haven't built a product in their entire life -- just scares the heck out of me.

HARRIS: And Neal, last one to you.

Is the new "cash for clunkers" plan, is this a "Buy American" plan? And secondly, could it be the hidden stimulus that saves the U.S. auto industry?

BOUDETTE: It's not a "Buy American" plan. You can turn in a clunker, an old car, and buy a new Toyota or a Honda.

HARRIS: But isn't it clear this administration wants you to buy something from GM and form Chrysler and from Ford? Well, maybe not so much Chrysler, but certainly Ford?

BOUDETTE: Well, you can buy American or you can buy the foreign- owned, as well. Honda is available. All those foreign vehicles that meet the fuel economy requirements are available for the plan. It's not specifically targeted for Detroit alone. And whether it will save the auto industry, I think it will ease the pain, but the real big question is the overall economy.

"Cash for clunkers" may help companies get through this tough period, but it's not going to bring anybody back to life like GM or Chrysler.

HARRIS: Yes.

And Lauren, I was thinking about Chrysler. I don't know how much Fiat owns. Does Fiat own Chrysler now?

BOUDETTE: Twenty percent.

HARRIS: Twenty percent? OK. So, I guess you would take this money and, conceivably, you would buy Chrysler cars, as well.

What are your thoughts on it? Is it a stimulus plan that could potentially save the auto industry?

FIX: I'm not a huge fan of the "cash for clunkers" plan, I think for a multitude of reasons.

First off, those people that are eliminated from this plan and those people that have always leased cars, you're not eligible. Those people that have said, you know what? I'm always going to buy a hybrid, I'm going to take really good care of my car, I'm going to work with the environment and buy green cards, you're not eligible.

And the thing is, then there are those people that are unemployed that aren't eligible because they can't afford to finance another car and then have higher insurance payments, which is how we got here in the first place. And then what it also does is it kills the used car market because, if I have an older car and I want to trade it in on a newer car, and I could have a really old piece of junk and trade it in towards a Nissan Skyline, which is like a sports car, and that does qualify, or I could go buy a Kia -- so, I mean, you don't know.

So, either way, now you take the used car market, that has to be destroyed, and now there's less cars in that market which causes the used car market prices to rise. And those people that can't afford new cars, those used car prices are going to go up. So that doesn't help them either.

HARRIS: All right. Let's wrap it there, leave it there. I want to get to some of these pictures from the Vatican.

Neal, good to see you.

Lauren, as always, great to talk to you.

FIX: Thank you, Tony.

HARRIS: Let's get to these pictures. We'll get to the AIG story in just a moment, but I want to see some of these pictures here. Let's blow those up full.

Obviously, the president in Rome, at the Vatican, where he and the first lady -- can we take them full? -- will have an audience with Pope Benedict. The president and the pontiff expected to discuss global warming, some social issues such as abortion, but we understand that they may also discuss the financial crisis. That meeting taking place maybe about 25 minutes or so ago.

As you know, the pope made a strong statement this week saying that the U.S. should take the lead on regulation, particularly on the financial markets. And the pope also blaming the global financial crisis on greed.

And there it is, pictures of the Vatican. Just want to give you a look at some of those pictures.

We will, of course, be following this story and the rest of the president's trip. He leaves Italy later today and makes his way to Ghana.

The insurance giant that got the $180 billion of your tax dollars is reportedly preparing to pay its top execs millions more in bonuses. It's been just, what, four months since AIG paid out multimillion- dollar bonuses, sparking widespread outrage. So, this time, "The Washington Post" says AIG wants to protect itself by getting approval by the administration's compensation czar.

Congressman Elijah Cummings tells CNN he hopes AIG does not get the nod.

(BEGIN VIDEO CLIP)

REP. ELIJAH CUMMINGS (D), MARYLAND: And I think basically what AIG is trying to do is go back to the way things were pre-United States government owning 79 percent of the company. And I'm hoping that Mr. Feinberg, who is the pay czar, the compensation czar that President Obama appointed, I'm hoping that as AIG goes to him for cover, that he will say, "How dare you."

(END VIDEO CLIP)

HARRIS: OK. One point here. AIG doesn't really need approval from Feinberg, the compensation czar, because the bonuses are linked to contracts from last year before it received bailout money.

Hmm. Smelling a blog question here.

We want to know what you think about this round of AIG bonuses. If you would, go to CNN.com/Tony. We give you a bit of a longer set up to the question on the blog. I rip on it a little bit -- couldn't help myself. So, send us your thoughts, CNN.com/Tony.

Disturbing details continue to emerge about a cemetery where hundreds of bodies were dug up and moved in an alleged scheme to resell plots. Now families are arriving in droves demanding to know where their relatives are.

(COMMERCIAL BREAK)

(WEATHER REPORT)

(COMMERCIAL BREAK)

HARRIS: Moments ago Sheriff Tom Dart -- he is the Cook County, Illinois, sheriff -- held a news conference giving us the very latest information on this scheme, this horrible scheme to resell burial plots.

Here's what he had to say just moments ago.

(BEGIN VIDEO CLIP)

SHERIFF TOM DART, COOK COUNTY, ILLINOIS: I don't know what to say about the families. They're amazing people. They've gone through horrific grief here, and they are hanging in there, and they're doing the best they can. And our heart goes out for them having to go through this again. I can't tell you how difficult this has been on everyone involved with this.

There is an area now that is cordoned off as a crime scene where the FBI is actively doing a lot of work that we're blocking off from everybody, including families. So, we're trying to work with them, as well, but thankfully, there's a minimal amount of gravesites that are on that location. But otherwise, we're still trying to allow business to be conducted here. I don't want to conducted as usual, but conducted here.

(END VIDEO CLIP)

HARRIS: Can you imagine for just a moment family members looking for deceased relatives who were supposed to be resting in peace?

Cheryl Jackson has more.

(BEGIN VIDEOTAPE)

CHERYL JACKSON, FREELANCE CORRESPONDENT (voice-over): What has happened in this historic African-American cemetery is causing sadness and outrage. Famous African-American like Emmett Till, whose lynching sparked the civil rights movement, and jazz singer Dinah Washington are buried here. Their graves are undisturbed, but others are heartbroken by what they found.

BRENDA RAY, BROTHER BURIED AT CEMETERY: My brother, this is where he's supposed to be. I want to know, what do you do when you can't find your family member?

JACKSON: What do you do? Many like Brenda Ray are asking the same question.

Police say at least 300 bodies were ripped from their graves, many crushed into piles with the cement vaults they were buried in. Also, their graves could be resold.

RAY: He's supposed to be at 10-2, row 9, grave 21. There's nothing over there. There's not even no tombstones or nothing over there, not even no flowers. It's like they just recut grass.

JACKSON: Four employees of the Burr Oak Cemetery have been charged with felony dismemberment of a human body.

ANITA ALVAREZ, COOK COUNTY STATE'S ATTORNEY: We presented formal charges against four individuals.

JACKSON: Facing those charges are office manager Carolyn Towns and grave diggers Maurice Dailey, Keith Nicks and Terrence Nicks. Even police are shocked by the careless treatment of the people who were supposed to be resting here in peace on sacred ground.

DART: As I was walking around, I came across bones that were clear they were parts of skulls, and parts of legs or arms. And they're just -- they're laying in different places around here. There's piles that have been dumped here.

ANDORA MONTGOMERY, RELATIVES BURIED AT CEMETERY: They're not human to me. They're not human.

JACKSON: Andora Montgomery has more than a dozen family members buried here.

MONTGOMERY: My grandfather, sister, my brother, my mother, my father, my sister.

To me, they don't have no hearts.

JACKSON (on camera): The sheriff says that the FBI from all over the country will be involved in this investigation, and that forensic people from all over the world will be involved in this investigation that is expected to take several months.

We know that the suspects are still in the Cook County Jail. We don't know whether or not they have attorneys, but we do know that two of them are cooperating with police.

Cheryl Jackson for CNN, Alsip, Illinois.

(END VIDEOTAPE)

HARRIS: Did you hear that? Two thousand families visited Burr Oak Cemetery yesterday just to check on their loved ones. Two thousand families. Can you imagine? Still to come in the NEWSROOM, if you've got money in savings, is there a better place for you to put it? Our personal finance editor, Gerri Willis, has that answer and much more still ahead.

(COMMERCIAL BREAK)

HARRIS: OK. A better investment, an upside down mortgage, and two kids, medical school.

CNN personal finance editor Gerri Willis is here to tackle your money questions.

Gerri, good Friday to you. It's Friday, the weekend's here!

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Hi there, Tony. I know.

HARRIS: Boy, it's good stuff.

All right. Cory has our first question. Are you ready?

WILLIS: Let's get down to it. Right.

HARRIS: All right. "I have $8,000 saved, but it is just sitting in a savings account earning almost no interest. Is there something better that I can put my money into that is safe, Gerri?"

WILLIS: Well, Cory, great question. You know, this is a real problem for a lot of people. They're too scared to invest their money.

But I've got to tell you, there's no such thing as safe, risk- free investment. Some products are riskier than others.

Bank accounts, CD yields may give you up to two percent on your money, but -- and it doesn't get safer than that, but keep in mind inflation may eat into those returns. And if it rises, you may lose the value of your money.

Think about putting some of your money towards your 401(k), if you're offered one, or an IRA. And if you have a long-term investment horizon over 10 years, you'll be able to reap the benefits of compound interest.

Otherwise, look at an inexpensive mutual fund, index funds from low-cost families (ph) like T. Rowe Price or Vanguard. You have really got to spread that money around to make money.

HARRIS: Nice.

OK. We've got a second question here from Mary in Arizona, who writes, "My son has a mortgage that is more than the value of the property." I guess this is being upside down. "He is able to just make the payments. What are his options to reduce his mortgage payment, principle reduction, lower interest rate, et cetera?"

What are your thoughts on this, Gerri?

WILLIS: Mary, Mary, Mary, your son's first step, get on the phone with your lender, ask for some help, especially if there is a chance he's going to miss a payment. The lender could offer him a lower repayment schedule. And as you know, the government recently announced a program that could help homeowners, particularly if you're upside down in your mortgage, as you're indicating here that your son is.

For more info on that program, go to the government's Web site. It's called MakingHomeAffordable.gov. There is also a phone line you can call, the Hope Hotline, at 888-995-HOPE. But there is some help out there.

HARRIS: Very good.

And Francine is in North Carolina and writes, "We have two sons in medical school. Both have medical school loans. How can they get help paying back this loan?" Gerri?

WILLIS: Well, Francine, there is help. Good news here.

There are a number of student loans forgiveness programs in health care. The National Health Service Corps is an example of a forgiveness program for doctors and nurses who practice for a set number of years that lack adequate medical care.

Otherwise, look at the American Association of Medical Colleges. They have a database of state and other loan repayment programs for medical school students. Go to AAMC.org for more info.

And, of course, if you have any other questions, send them to us at gerri@cnn.com. We love to hear from you, and we answer those questions just as we do every Friday.

HARRIS: Awesome. Thank you, Gerri. Have a great weekend.

WILLIS: My pleasure. You, too.

HARRIS: All right.

Gerri and the rest of the Money Team are the absolute best -- Gerri, Jeanne Sahadi, Poppy Harlow, Christine Romans, senior business correspondent Ali Velshi, Stephanie Elam. Get the latest financial news, expert analysis, by simply logging on to CNNMoney.com.

Health care reform -- who pays? We'll hear some of your ideas next in the NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: And going on right now, a hearing between -- before two House committees on the staggering $600 trillion derivatives market. Do you know what a derivative is? We'll try to explain in just a second here. Treasury Secretary Timothy Geithner is among the witnesses. President Obama wants to regulate over-the-counter derivatives. And a derivative is essentially a financial contract that is derived from an asset, something like a stock option offered by a company. The Obama administration is pushing for a centralized system to monitor prices or deals much like a stock exchange. It gets really complicated. The aim is to make sure those business deals go through and don't lead us into another financial crisis.

CNN's Fareed Zakaria talks with the Treasury secretary for a show this weekend. Fareed asked him about shoring up the nation's economy.

(BEGIN VIDEO CLIP)

FAREED ZAKARIA, CNN HOST, "FAREED ZAKARIA GPS": Your growth forecast for 2010 is 3.2 percent economic growth for the United States. The IMF just came out with its forecast, which is 0.8 percent. If they're...

TIMOTHY GEITHNER, U.S. SECRETARY OF THE TREASURY: I actually haven't looked at the IMF forecast, but...

ZAKARIA: Economists -- I think it would be fair to say a lot of economists think that it's likely to be lower than 3.2 percent. If that happens, my question to you is, the deficit as a percentage of GDP becomes much higher. Are you willing to do whatever it takes to keep the deficit as a percentage of GDP within the range that the president has suggested?

GEITHNER: He understands deeply the importance of making sure that we put in place a stronger foundation for recovery as a whole, and part of that will be a return to living within our means as a country.

ZAKARIA: And that may mean higher taxes.

GEITHNER: Well, it will mean...

ZAKARIA: There's no magic, for there are only two ways to close it.

GEITHNER: Right, but as a country, and there's no mystery in this, we're going to have to bring our resources and our commitments closer into balance. That is a necessary thing for us to do.

(END VIDEO CLIP)

HARRIS: And you can hear the rest of Fareed's interview with the Treasury secretary Sunday afternoon at 1:00 p.m. Eastern time.

President Obama is heading to Africa after just wrapping up a visit with Pope Benedict at the Vatican. Let's go live now to our Paula Newton. She is in Rome. And, Paula, what did the two men talk about? Do we have any idea?

PAULA NEWTON, CNN INTERNATIONAL SECURITY CORRESPONDENT: Tony, just moments ago the president left the Vatican. The first lady was also there for part of the meeting at the end. In that half an hour, no doubt the pope will have spoken to President Obama about the summit. Before this summit, the pope saying quite forcefully that, look, we're expecting the richest countries in the world to show leadership because the pope saying that, look, this financial crisis is biting, and it's a struggle for the world's poor.

And I'm sure the pope will have known that he wants to be heard on these issues. From one of the pool reports I have, it says that President Obama did say upon leaving that he was sure that he was going to have good relations with the Pope going forward. I should say, as I just mentioned, Michelle Obama also with the president there.

And something that you won't see in the pictures is the Obama girls were also with the pope just before. There are no official pictures of that. But what happens is the pope gives them a special blessing, gives the entire first family a special blessing, even though they will not be in the official pictures.

HARRIS: Wow, how good is that? Boy, that's interesting because the -- as you know, the pope made a pretty strong statement earlier in the week asking the U.S. to take the lead on regulating the financial markets and also blaming the global financial crisis, in part, on greed. What is on the president's agenda for the rest of the day, Paula?

NEWTON: Right now he's taking off to Ghana. And we all know that that's going to be an important speech. First one in Africa -- well, in a black-majority country in Africa. And he will be talking about what the United States hopes they can achieve.

Mainly, Tony, as we were discussing before, no more handouts. They want to give out a hand up. That means more money to produce food in Africa. Obama going there with 5 billion extra dollars on the table that he was able to get from the rest of the countries here at this summit. But it's, as we've been telling you, very hotly anticipated in Ghana. They're very honored to have the president there for the first time.

NEWTON: Paula, appreciate it. Thank you.

HARRIS: President Obama also was asked about reforming health care during a news conference in Italy. He says he knows what he wants, but admits getting it done won't be easy.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: My job is to make sure that I've set some clear parameters in terms of what I want to achieve. We have to bend the cost curve on health care, and there are some very specific ways of doing that, game changers that incentivize quality as opposed to quantity, that emphasize prevention.

There are a whole host of things that I put on the table that I want to see included. I've said that it's got to be budget-neutral. It's got to be deficit-neutral. And so, whatever bill's produced has to be paid for, and that creates some difficulties because people would like to get the good stuff without paying for it. And so, there are going to be some tough negotiations in the days and weeks to come. But I'm confident that we're going to get it done.

(END VIDEO CLIP)

HARRIS: All right, we want to hear from you. We need to hear from you on this issue. We talked about it a lot yesterday, and we asked for your opinion about how to pay for health care reform. Here's some of that.

(BEGIN AUDIO CLIP)

CALLER: I'm for taxing all of the bad things that are bad for your health like soda pop, cigarettes, cakes, cookies, all those chips, whatever.

CALLER: I feel like if we can't afford to pay for it without taxing people, we don't need it.

(END AUDIO CLIP)

HARRIS: And many of you answered on our blog. John says, "All this debate over taxes when we're talking about $1,000 a year. I'll gladly pay $1,000 more per year."

And this from Bill, who writes, "It seems me the money the drug companies use on advertising could be better used to reduce prescription costs."

HARRIS: We want to keep this discussion going. If you would, just go to our blog at CNN.com/tony. Oh, what's the phone number? I don't know the phone number. I'll get that in my head here. But you can leave us a note on the blog page, and we'll get the phone number up at some point here, maybe next hour. And you can call 877-742-5760 -- that's funny how that works -- and we will get your responses on the air.

Confidential documents surfacing about Michael Jackson's state, that he may have taken more than ten Xanax pills a night to sleep. And they detail the lengths he went to get those pills.

(COMMERCIAL BREAK)

HARRIS: For the first time publicly, the Los Angeles police chief is suggesting Michael Jackson's death may be ruled a homicide. CNN has learned Jackson was at least one time taking an astounding number of pills to sleep. Two reports now. First, CNN's Randi Kaye in Los Angeles.

(BEGIN VIDEOTAPE)

RANDI KAYE, CNN CORRESPONDENT: I have right here a confidential document from 2004. It's from the Santa Barbara County Sheriff's Department here in California. And it contains confidential interviews that were done with two of Michael Jackson's former security guards. These interviews were done in preparation for the child molestation case, of which Michael Jackson was acquitted of that.

But it really paints a dark picture of his apparent drug habit. We are not naming the security guards who are mentioned in this document, but according to it, one of them told investigators that Jackson was taking, quote, "ten-plus Xanax pills a night." He said when he expressed concerns about that to another one of Jackson's employees, he was told, quote, "Jackson was doing better because he was down from 30 to 40 Xanax pills a night."

And this is information coming directly from his security guards at that time. One of the guards told investigators that he would get the Xanax prescriptions at pharmacies for Jackson under a, quote, "fictitious name," including the security guard's own name. And the other security guard actually backed that up. He said that he was doing the same thing. And in fact, and they named at least three other employees that were doing this, as well.

Now, we're not going to name the doctors who are mentioned in this confidential document, but one of the security guards, we can tell you, did name five doctors who he said were writing prescriptions for Michael Jackson, not all of them, again, in his name. The security guard said in several states across the country, including California, New York and Florida, he personally drove Michael Jackson to different doctor's offices, which really paints a picture of doctor shopping, as it's called.

And that is really in line with what our source close to the investigation has been telling us, that investigators want to speak to every doctor that Michael Jackson has ever come into contact with. One of the security guards, we also want to note, described Jackson as sharp and, quote, "in tune" before these doctor visits. But when he would come out of the doctor's office, this guard said he was, quote, "out of it and sedated." That same guard said he talked to one of the doctors and that this doctor apparently said, quote, "Jackson was addicted to Demerol," but he said he was giving Jackson a placebo to wean him off it.

Now, according to this document as well, the security guards who really provided most of the information here, he told investigators that he quit his job after he says, quote, "Jackson fell on his face in a hotel room and hurt himself." This employee told investigators that he said to Michael Jackson he was not comfortable getting prescriptions for him and left his job.

And one other final note, we spoke with Jack Wishna. He's an international dealmaker, if you will. And he says that he knew Michael Jackson for 10 years. He actually was one of the people who was bringing him to Las Vegas to get his show started and give his career a jump start back in 2006. He told us that Jackson often appeared, quote, "drugged up and incoherent." He also told me that he was sometimes "so weak," that's a direct quote, so is this, "so emaciated and so thin" that Michael Jackson actually had to use a wheelchair to get around Las Vegas. Eventually, the stage show and the comeback, he said, was canceled because of Michael Jackson's condition. That is the very latest on the Jackson investigation from here in Los Angeles.

Randi Kaye, CNN, Los Angeles.

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DREW GRIFFIN, CNN SPECIAL INVESTIGATIONS UNIT CORRESPONDENT: It was 2007. That was two years after Michael Jackson's trial for child molestation in California. A jury acquitting him, but he was scarred. He all but disappeared, first going to Bahrain for a kind of self- imposed exile and then briefly to Ireland. We're told he was happier, but that his career was going nowhere. This was a period when he rarely saw his family.

Now, sources tell us Michael Jackson became fixated with music superstar Celine Dion and that permanent show she was starring in in Las Vegas. Jackson thought that kind of show might be his path back to show business. So, he moved to Vegas. In early 2007, he was believed to living in this large rented home.

Two sources close to the family say Janet Jackson, who'd seen little of her brother in recent years, visited him there and was shocked. We're told the house was nearly barren of furniture and creepy-looking, according to one source. But it was the sight of an extremely thin, disheveled Michael Jackson that frightened Janet.

And that brings us up to the NBA all-star game weekend in February in Las Vegas. Janet Jackson there with two of her brothers. She asked those brothers to go back with her to Michael Jackson's house, trying to convince Michael to get help. Reportedly, Michael ordered his new security guards not to let them in.

We've also learned that Michael Jackson, at that time, was refusing to take calls from his own mother, Katherine Jackson, who had been repeatedly pleading with her son to get help. Now, all through this time, the family had been concerned and, according to both our sources, Michael Jackson would simply refuse to see anybody who tried to stop him from using drugs.

One source saying that if you tried to deal with him, he would shut you out. We just wouldn't hear from him for long periods of time. Another source was telling us the family had been concerned for a long time, but it was Janet now who tried to force the issue two years ago.

We must tell you that back in 2007, "People" magazine did report about an alleged Jackson family intervention. The Jackson family denied it, releasing this statement, which said in part, "We categorically deny ever planning, participating in or having knowledge of any kind of intervention whatsoever." Now, that statement was signed by members of the Jackson family, but not signed by Janet Jackson. (END VIDEOTAPE)

HARRIS: Boy. All right, as far as we know, Michael Jackson's body has not been laid to rest. A California state official tells CNN the family has inquired about burial at Jackson's Neverland Ranch. That would require special permission from Santa Barbara County, which says no request has been filed.

All they wanted to do was swim, but the swim club said no. Now, accusations of racial discrimination and a full investigation.

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HARRIS: So, here's the skinny. Americans have gotten fatter over the past year. Advocacy groups say two-thirds of Americans are either overweight or obese. Adult obesity rates now exceed 25 percent in 31 states. Perhaps most alarming, childhood obesity rates in the U.S. have more than tripled since 1980. Eight of the 10 states with the highest rates of overweight children are in the South.

And this week's "CNN Hero" is attacking this had epidemic in one of those states, Georgia.

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ANNOUNCER: This is "CNN Heroes."

MALIK, PARTICIPANT IN FITNESS AND NUTRITION PROGRAM: Now it feels not that great. It was not easy to carry around this weight. So, I wanted to get healthy and fit.

PAMELA GREEN-JACKSON, MEDICAL MARVEL: Where did we go wrong as a country where P.E. in schools is no longer a priority or children's health is no longer a priority? Something had to be done, and I just decided to be the one to do it.

My name is Pamela Green-Jackson, and my organization is a physical fitness and nutrition education program for elementary and middle-school youth in my community. My brother Bernard died at age 43 at the weight of 427 pounds. He didn't have to die, and so I promised myself that I would do whatever I could to make sure that another child didn't suffer like he did.

UNIDENTIFIED MALE: Got about another ten seconds.

GREEN-JACKSON: So, what we've done is converted vacant classrooms and turned them into health clubs. This is a free program. We have personal trainers. We've got dietitians that work with them. We allow each individual child to set their own goals.

MALIK: Miss Pamela is my hero because she is always helping me to do things that I never thought I could do.

GREEN-JACKSON: If we instill these habits in them early, then they will grow up and become healthier adults. That's really what this is all about is saving the lives of children. (END VIDEOTAPE)

HARRIS: And you can find out more about Pamela's work and nominate a "CNN Hero" of your own on our Web site at CNN/heroes. And July -- I hate to tell you this -- is the last month to get your nominations in. So, if you know a hero, don't wait to tell us about them. Just go to CNN.com/heroes, and do that right now.

And here's what's coming up in the next hour of CNN NEWSROOM. What new role could Pakistan play in the fight against the Taliban in Afghanistan? Our Michael Ware takes us behind the scenes.

Should Sonia Sotomayor become a Supreme Court justice? We will take a look at the fight over her nomination and the latest polling numbers on what you think.

And General Motors pushes the reset button as it officially emerges from bankruptcy today. Poppy Harlow has a breakdown on the new GM. Keep it right here on CNN.

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HARRIS: Pennsylvania officials say they will investigate accusations of racial discrimination at a suburban Philadelphia swimming pool. Our Susan Candiotti has that story.

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SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT (voice-over): Swimming once a week at the spacious Huntington Valley Club near Philadelphia. It sounded ideal for 65 kids described as black and Hispanic at Creative Steps day care summer camp.

ALETHIA WRIGHT, DAY CARE DIRECTOR: I was excited. The parents and children were excited.

CANDIOTTI: But when the youngsters showed up at the pool June 29th, after the day camp signed and paid a $1,900 contract, this happened.

WRIGHT: The children came running down the hill saying, Miss Wright, Miss Wright, those people up there are saying, "What are those black kids doing in the pool?"

CANDIOTTI: Twelve-year-old Marcus Allen is her son, says he was sitting outside the pool and heard white adults say this.

MARCUS ALLEN, POOL VISITOR: It was like, "Oh, why are these black kids here?" Oh, and then they were saying, "Oh, I'm afraid they might do something to my children because I don't know if they might steal -- might try to steal some of my stuff or might try to, like, harm my children."

And, like, I was, like, amazed that they would think something like this because we're, like, just like you. Like, we're just like your kids. WRIGHT: Not enough room.

CANDIOTTI: Mrs. Wright says the swim club's director told her he was embarrassed, held an emergency board meeting and called her back the next day to say they could not come back.

WRIGHT: And he said, the membership says let the chips fall where they may.

CANDIOTTI (on camera): You know, Marcus, I see tears coming down your face. Why does this make you cry?

ALLEN: Because it's just kind of, like, sad that, like, people were still thinking like -- thinking like this, when I felt like these days was over.

WRIGHT: This is 2009. Children should not be subjected to that.

CANDIOTTI (voice-over): The swim club's director is quoted by local media saying the day camp kids changed the, quote, "atmosphere and complexion of the club." A club member reacted.

JIM FLYNN, CLUB MEMBER: I'll be asking for the president of the club's resignation today because I think the comment that he made, although taken out of context, was probably one of the stupidest comments I ever heard.

CANDIOTTI: He claims the club was simply overcrowded, not racist. He said two other unidentified day camps, both nonminority, also got the boot.

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CANDIOTTI (on camera): Now, The Valley Club has issued a written statement only, denying that race had anything to do with its decision. That statement reads in part, quote, "We underestimated the capacity of our facilities. Our Valley Club deplores discrimination in any form."

So in essence, Tony, they are saying this was about space, not race. I also spoke at length with the wife of this gentleman who negotiated the contract. hand she said if there's one point I want you to make, she insisted, my husband is a kind man.

She said in her view, this is not a story. This was a matter of overcrowding. They just couldn't handle it, and others were discouraged to end their contract. Their contracts were canceled also. Clearly, this is a group that feels that it would simply go away. But apparently, with this investigation by the Human Relations Commission, I don't think it's going to.

HARRIS: Susan, we can barely hear you. What's going on with all the construction around you? Is that on purpose, or was that just a coincidence?

CANDIOTTI: It's a very busy street, Tony. HARRIS: All right. Thank you. Maybe I'm just a little sensitive.

All right, Susan, appreciate it. Thank you.