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Congress Delays President Obama's Health Care Plan; Child Gets Trapped in Flaming Car; Controversy over Harvard Professor Heats Up; Health Care Reform Delayed; Palin Leaving Office on Sunday

Aired July 24, 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: Good morning, everybody. I'm Heidi Collins, it is Friday, July 24th, and you are in the CNN NEWSROOM which happens to be a very busy place today.

First off this morning, health care reform. Is President Obama's plan delayed or completely denied now? We'll get you up to speed on that.

Also, we'll go live to Afghanistan where CNN's Ivan Watson has the very latest from the front line on the battle raging there.

And also, this story, a car burst into flames. A 3-year-old is trapped, and a grandmother screams for help. We'll tell you what happened next.

But first, we want to tell you about a big shift in President Obama's push for health care reform. Senate majority leader Harry Reid now says the chamber will not vote on a health care bill until after the upcoming August recess. Now that means September at the very earliest.

And that is a big setback for the president who's been making a very public push for Congress to act before its August break. But Senator Reid says lawmakers need more time to negotiate a bipartisan plan. President Obama says he's OK with the delay as long as lawmakers keep working on the legislation.

The president is meeting with Senator Reid and Senator Max Baucus later this morning. We will have a live report from the White House coming your way in just about 30 minutes from now.

People have been talking about it, blogging about it all week now, the arrest last week of a prominent Harvard professor at his home in Cambridge, Massachusetts. Now those involved are speaking out.

Here's what our Joe Johns has to say on who is talking next.

(BEGIN VIDEOTAPE)

JOE JOHNS, CNN CORRESPONDENT (voice-over): Everyone it seems is weighing in on the story of Harvard Professor Henry Louis Gates' arrest for disorderly conduct. Everyone, including the president.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: The Cambridge police acted stupidly in arresting somebody when there was already proof that they were in their own home.

JOHNS: The president had to reel that comment back in a bit with his press secretary saying the president, quote, "was not calling the officer stupid. He was denoting that at a certain point the situation got far out of hand." But Mr. Obama talked about it again in an interview on ABC.

OBAMA: From what I can tell the sergeant who was involved is an outstanding police officer, but my suspicion is that probably that it would have been better if cooler heads had prevailed.

JOHNS: The president didn't comment about the racial overtones in the case, but Professor Gates certainly is. Gates, who is a friend of the president, claims he was the target of racial profiling. He's demanding an apology.

HENRY LOUIS GATES, HARVARD UNIVERSITY PROFESSOR: But what it made me realize was how vulnerable all black men are. How vulnerable all people of color are, and all poor people to capricious forces like a rogue policeman. And this man clearly was a rogue policeman.

JOHNS: But the guy who arrested Gates, Cambridge Police Sergeant James Crowley, is now speaking out, too, saying the arrest didn't have anything to do with race. And when asked by WFXT whether he would apologize to Gates, Crowley said forget it.

UNIDENTIFIED REPORTER: This is now and ever no apology?

SGT. JAMES CROWLEY, CAMBRIDGE POLICE DEPARTMENT: Yes.

UNIDENTIFIED REPORTER: What if it means discipline or your job?

CROWLEY: It won't. I have the support of my organization, which I'm very grateful for.

JOHNS: And as far as the president goes, Crowley said in a WEEI Radio interview that Mr. Obama didn't have all the facts.

CROWLEY: Of course he's the president of the United States and I support the president to a point, I guess. I think it's disappointing that he waded into what should be a local issue.

JOHNS (on camera): Turns out Crowley's got a good resume. He was hand-picked by a black police commissioner to teach classes on racial profiling at a police academy. And as far as the Gates' case goes the disorderly conduct charge was dropped. But the mayor says she wants to make sure that nothing like this ever happens again.

(Voice-over): And the Cambridge Police commissioner who expressed his firm support of how Crowley conducted himself says his department is launching an investigation and is clearly not happy about all the attention.

COMMISSIONER ROBERT HAAS, CAMBRIDGE POLICE: This department is deeply pained and takes its professional pride seriously.

JOHNS: But cause of a national debate over race and the police.

Joe Johns, CNN, Washington.

(END VIDEOTAPE)

COLLINS: Friends and co-workers of Sergeant Crowley call him a principled police officer, not a racist, and he echoed that in an interview last night with Kim Khazei from our Boston affiliate, WHDH. His first comments directed to President Obama.

(BEGIN VIDEOTAPE)

CROWLEY: I was a little surprised and disappointed that the president who didn't have all the facts by his own admission then weighed in on the events of that night and made a comment that, you know, really offended not just officers in the Cambridge Police Department, but officers around the country.

KIM KHAZEI, WHDH REPORTER: Sergeant James Crowley, sitting down with 7NEWS Tonight, reacting to President Barack Obama's comments about the day he arrested Harvard professor Henry Gates, and talking extensively for the first time what happens at the Cambridge house.

CROWLEY: I asked him if he could step outside and speak with me and he said no, I will not. And again, words to the effect of what's this all about? And I said, I'm Sgt. Crowley from the Cambridge Police Department investigating a break in progress. And he responded, why, because I'm a black man in America, in a very agitated tone. And again, I thought that was a little strange.

KHAZEI: Sergeant Crowley saying after getting a call about the break-in, he was just trying to protect Gates as well as himself.

CROWLEY: There was a report that there was two individuals. I see one and it could be him, so where's the second person? Or there's two people in the residence that he doesn't know are there. Either way, I wasn't expecting his response, which was that's none of your business.

To me, that's a strange response for somebody that has nothing to hide, is trying to cooperate with the police.

KHAZEI (on camera): So did he come out and speak with you?

CROWLEY: I was leaving. As I reached the porch, I could -- I was aware that now he was following me because he was still yelling about racism and black men in America and that he wasn't somebody to be messing with...

KHAZEI: Sergeant Crowley says he warned Gates he was acting disorderly and when he didn't calm down, he arrested Gates. The professor wants an apology, but the sergeant says he will not set that precedent for police officers. He regrets the event and wants to let his story be heard.

CROWLEY: The amount of negative things that are untrue that he was saying about me at least warranted a response and allow people to see that I'm not a monster or the bigot or racist that he has portrayed me to be. This is me.

(END VIDEOTAPE)

COLLINS: Gates' attorney says he is worried the wrong message is being sent, that his client was never unruly and did nothing wrong. He told CNN's Don Lemon he thinks the 911 tapes, when released, will show that. He also says a lawsuit is a possibility.

Cambridge's top cop also speaking out about this incident. Commissioner Robert Haas says Sergeant Crowley followed procedure, but he's ordered a review to get the whole story out. And he told Don Lemon he wishes the president had refrained from commenting so soon.

(BEGIN VIDEO CLIP)

DON LEMON, CNN ANCHOR: So, Commissioner, when you look at this in the paper and you see the president here and it says, "Obama Scolds Cambridge Police," what do you think of that?

HAAS: I think what you need to understand about this police department in this community it's very proud about its diversify within this community and how hard we've worked over the years to build those strong, solid relationships with the department and the community.

And I have to tell you, the officers take that very personally and basically feel hurt by that comment. We truly are trying to do the best service we can to the community. And sometimes we make mistakes, we're human, but we learn from those mistakes and we move on.

(END VIDEO CLIP)

COLLINS: President Obama was asked about his comments on ABC's "Nightline" program. Here's how he put it.

(BEGIN VIDEO CLIP)

OBAMA: I have to say I'm surprised by the controversy surrounding my statement because I think it was a pretty straightforward commentary that you probably don't need to handcuff a guy, a middle-aged man who uses a cane who is in his own home. Now what I do know is, as I said last night, I don't know all the details.

(END VIDEO CLIP)

COLLINS: Sergeant Crowley's police union is holding a news conference later on today and Crowley is expected to read a statement. CNN will have live coverage of that event coming your way noon Eastern.

We do want to know what you think about the Henry Louis Gates arrest. Go to CNN.com/heidi and then hit the comments button, or you can call in your thoughts to the brand new "Hotline to Heidi." That number is 1-877-742-5760.

So do you feel that? It's your retirement account getting a little fatter these days. In the past nine business days, in fact, the Dow has soared some 11 percent. In this hour it begins above 9,000 for the first time since January.

CNN's Christine Romans has been watching the numbers. She's joining us now live from New York with more on this.

You know, I'm like terrified to be excited, Christine.

CHRISTINE ROMANS, CNN CORRESPONDENT: I know. Aren't we all? Look, this is all about clawing back some of what you lost, right?

COLLINS: Yes.

ROMANS: This is about looking over the past 18 months and knowing that you've been decimated in your 401(k) and you're getting a little bit of it back. So, let's first look at the Dow above 9,000. Why is it above there?

Keep in mind it's been very fragile above 9,000 when we tried to get here, but closing above 9,000 for the first time since November. And you can see that -- the first part of that chart where it goes all the way down, that's the March 12th year low, and then ever since March, the stock market has been going up, up, up.

The reason is here, is the feeling on Wall Street, frankly, that we avoided some kind of an absolute collapse of the financial system. So this isn't about an economy going gang busters, this is about we avoided a big collapse.

Now we're seeing better-than-expected corporate earnings, Heidi. We're seeing the companies come out and saying, look, we're not making the profits that we were a year ago, or we're still losing money, but we're -- it's not as bad as people had thought, and so that better- than-expected corporate earnings is helping.

Also the economic data. You know you saw June home sales tick up, even though those sales are coming at, you know, sharply reduced prices for homes. These are some of the kinds of data that people are watching.

So that's the reasoning behind it. But you know, look, I want to say about corporate earnings, what's good for Main Street is not necessarily what's good for Wall Street. One of the reasons the companies are doing better, Heidi, is because they're cutting costs.

COLLINS: Exactly.

ROMANS: That means cutting jobs.

COLLINS: Yes.

ROMANS: So even while we're feeling this horrible labor market, it's something that is working to the favor of some of the corporate earnings right now.

COLLINS: Yes, no question. I know a lot of those reports came in just yesterday.

ROMANS: Right.

COLLINS: Well, everybody wants to know, is it going to last?

ROMANS: Well, and that's the big question. We just don't know. We've already seen such a big move. I mean, look at it this way, the S&P has clawed back half of what it lost after the collapse of Lehman Brothers. So, you're still down. You're still down quite a bit. But it's clawed back some of what it lost and it is pretty much factored in this idea that the worst might be behind us.

COLLINS: Well, we have to see what happens.

ROMANS: So now what? Now we have to see.

COLLINS: That's just it. Just wondering what the next challenge is.

ROMANS: That's right.

COLLINS: The most immediate ones are.

ROMANS: And there are a lot of it. There's housing. The housing market is still in trouble. And no one thinks that home prices are going to be moving higher even if you do get sales stabilizing, home sales. And you also have the problem of unemployment. Unemployment and housing.

I keep saying these are the things that you and I touch and feel, that our neighbors touch and feel. Your job and your home and there's still a crisis in both of those areas. So that could be -- at least for how we feel, that's going to be much more important than how much money we're clawing back on our 401(k) right now.

COLLINS: Yes. How about the "Romans' Numeral" for today?

ROMANS: The "Romans' Numeral" is 8.75. And it's a percent. And I -- this number surprised me, Heidi. I wanted to find out since this recession began, since this debacle began about 18 months now, what are you doing in your 401(k)?

And according to research by the Employee Benefit Research Institute you're down about 8.75 percent now in your 401(k) over the last 18 months. I thought it would be much worse than that quite frankly. Looking into the numbers further, you find out that the harder hit people are people who are older, age 45 to 64.

They're down about 17 percent still in their 401(k) and they have much less time to win it back. But just trying to figure out how much we are clawing back. How we've changed, and, you know, how decimated has our retirement been. Also that data showing that people are turning more conservative over the past year or so. COLLINS: Sure. Saving.

ROMANS: Yes, exactly.

COLLINS: Savings. Savings. Savings. All right.

ROMANS: But -- so that's where we are.

COLLINS: Christine Romans, thank you.

ROMANS: You're welcome.

COLLINS: Sure do appreciate it. And also this story regarding your money. The minimum wage goes up today. It's now $7.25. That's up from $6.55 an hour. Here's the rise, in fact, over the past four years. The raise only applies to the 30 states that do not already have an even higher minimum wage. Several states don't have one at all.

Analysts do fear, though, the move could hurt small businesses forcing them to lay off people because they can't afford to pay the higher wage.

A deadly attack by insurgents in Afghanistan, U.S. Marines on the firing line. We'll take you there live.

(COMMERCIAL BREAK)

ANNOUNCER: You're watching CNN NEWSROOM on CNN, the most trusted name in news.

COLLINS: And now I want to bring you this story right here on CNN, only on CNN today. We kind of have the privilege of having a special guest in the studio with us today. In fact you know him as an award-winning musician, but there is definitely another side to Usher.

And he is here with us this morning to talk about something that is as important to him as his music. Live here in Atlanta one more time along with Quanisha Davis.

We sure do appreciate you being here. Well, because you guys have come to know each other because of some of the work that you've done is now benefiting her. Tell us a little bit about your camp first and then I want to hear what it's like.

USHER, ENTERTAINER, CHAIRMAN & FOUNDER, USHER'S NEW LOOK CHARITY: Quanisha is one of the 130 kids that we mentor every year. This will be our fourth year of Camp New Look. This year we actually had it on the campus of Emery.

COLLINS: Oh, great.

USHER: And mentoring is obviously something that has been very, very valuable to growth, you know, to becoming a more responsible American, you know. To be able to give back and give that opportunity to those who are less fortunate. But also at the head of change, it is our youth.

You know these kids come from underserved communities, but we give them the tools that they need to want progress in life but also give them the opportunity to go back to their communities and serve.

The power of service is powerful. It's very, very powerful. And if they just understand or have someone to invest in and to unlock that potential in them, who knows what could happen?

COLLINS: Exactly. Well, very well put. Is it true? I mean you've been there. You're going to go now back to where you came from, your community, and talk more about this, I bet. What are you going to take away from it, (INAUDIBLE)?

QUANISHA DAVIS, ATTENDING USHER'S CAMP NEW LOOK: Just being a leader, basically. And...

COLLINS: That's a big thing to say. Yes.

DAVIS: Yes, it is, and everything I learned from the camp is just preparing me to give it back to my community. How to push them forward as well as myself.

COLLINS: So when a child smaller than you comes up to you and says, hey, you know, how did you get where you are? How do you have the confidence? Because I've talked to you for 10 seconds and I can tell you have fantastic confidence.

How do you then take what you've learned at the camp and give it to this child who is younger than you and doesn't have the experiences that you've already gotten?

DAVIS: I think from the camp, you know, I learned that there's obstacles that we're going to have to overcome. So I would tell that little child there's going to be things against you. But you have to get past that. And there's all these people around you to help you and there's different programs like his program for us to teach us how to move forward, how to push forward, and at the same time also help others around you, as well.

COLLINS: So...

USHER: I'm proud.

(LAUGHTER)

COLLINS: Yes, I can tell. He's like a proud daddy. I mean, absolutely. Very good. Was this the overall mission? Because as we've mentioned before, you do at lot of stuff. Kind of a busy guy. This has become a major priority for you. And four years running, you know, it's tough to keep a camp like this going.

USHER: It is very tough to keep the camp and I'm very happy that I have an incredible board that helps me to sustain. You know, there's a difference between hard work, which is what we all can identify with, and then there's heart work. You know, as you said earlier, you know, music is what I do, but this is just my passion. And it actually is just -- it's just incredible to be able to see that knowledge unlock. And it's all in a second. It's a seed planted and the harvest is in the future.

You know, truly being powered by service makes a difference. And I'm happy that I could be able to mentor here in Atlanta. I'm happy I can do it here in Atlanta.

COLLINS: Yes, I think we are too in this area. Very much.

Well, Quanisha, it is a pleasure to meet you. I'm glad you've had the experience that you've had. And we'll be watching you with the leadership that you've been able to get from this.

Real quickly, I want -- how's the food at the camp?

(LAUGHTER)

DAVIS: Oh, it's good.

COLLINS: Oh good. OK.

DAVIS: Yes.

COLLINS: This is important, right?

DAVIS: It is.

COLLINS: All right, guys. It's a pleasure talking with you. The name of the camp is New Look. And Usher, it's a pleasure.

USHER: Thank you so much.

COLLINS: Quanisha Davis, thanks so much guys.

DAVIS: Thank you.

COLLINS: In fact, you can hear more about programs like this in our "BLACK IN AMERICA 2" documentary. You can see it again in its entirety this weekend. "BLACK IN AMERICA 2" airs Saturday and Sunday night at 8:00 Eastern.

Quickly want to get back to this story. We are learning about the deaths of two more U.S. troops in southern Afghanistan this morning. And our reporter is embedded with those troops. We're going to be talking to him in just a couple of moments.

(COMMERCIAL BREAK)

COLLINS: We are learning about the deaths of two more U.S. troops in southern Afghanistan this morning. The military tells CNN they were killed in an insurgent attack. Another marine died yesterday during battles with Taliban in Helmand Province.

CNN's Ivan Watson is embedded with that marines unit. Hear now the very latest.

Sounds like we are having a little bit of difficulty with that report. As we've been telling you, Ivan is embedded with the marines and sometimes it's difficult for us to get availability with him. So now we are going to try that one more time.

Once again, Ivan Watson is live on the telephone with us now.

Ivan, if you can hear me OK, tell us about the latest now in the fighting.

IVAN WATSON, CNN CORRESPONDENT (via phone): Heidi, I can hear you. It's difficult to communicate here, we're only using satellite telephone technology and it's pretty primitive conditions here in (INAUDIBLE). This is the southernmost point that the U.S. Marines have advanced to in Afghanistan's turbulent Helmand Province since they launched an offensive earlier this month.

Now one marine from the 2nd Light Armored Reconnaissance Battalion Delta Company paid the ultimate price on this mission yesterday. Sergeant Brian Lane, 25-year-old, originally from Pittsburgh, Pennsylvania. He was killed yesterday, mortally wounded, when insurgents fired a shower of mortars at the fortress, the ancient Afghan fortress that the marines are currently bivouac in in this district capital.

We witnessed as marines retaliated firing artillery moments after those mortars landed on this compound. Then we also saw later on in the day as the marines were firing mortars from this location where I'm at now, where Sergeant Lane was killed, firing them at suspected insurgent targets. They say they killed one man.

Now Sergeant Lane had already served once in Afghanistan. His colleagues tell me that he was nicknamed "Little Guy" because he was short. He was a huge fan of the Pittsburgh Penguins and paraded around in a Pittsburgh Penguins t-shirt that was mailed to him by his wife.

He could've done other jobs after doing a previous tour in Afghanistan, Heidi. But he chose to come back here with his platoon, we're told, because he wanted to save lives. That is the story of one marine killed in action yesterday by a mortar attack by insurgents during what has been the bloodiest month yet for U.S. forces in Afghanistan since the Taliban was initially overthrown eight years ago. Heidi?

COLLINS: Ivan, I'm not sure if you're able to elaborate, but we're looking at some pretty meaningful pictures of Brian Lane, and there is one photo that we showed of him with a young boy. Do you know any more about that photo?

WATSON: Yes, I mean, we've been talking with Sergeant Lane's colleagues. They said that one of the wonderful things about Sergeant Lane was that he had had previous experience in Afghanistan in the north. And they felt that he had a good understanding about the people here. That when they would go out on patrols, on missions, that he could establish quickly a rapport with the Afghan population. That they say they are here to help.

They said that they learned a lot from him based on his prior experience on how to deal with the local population.

Heidi, this is not just a combat operation. They're not just out here fighting. They're trying to build a fledgling local government in this town that I'm in which has been controlled for more than four years by the Taliban. Taliban basically fled without a fight, they have been since been lobbing rockets and mortars at this location and planting deadly roadside bombs which killed two other marines from Delta Company just last week.

These guys are having a very tough time here right now. They're living in difficult conditions, they've had three of their colleagues killed in just two weeks, Heidi, and they're going out, they're holding meetings with provincial Afghan government officials. They've brought in about 50 Afghan national police officers just today and gone out on the first joint patrol with them.

They're trying to win the hearts and minds of these locals while still being attacked by Taliban insurgents, Heidi.

COLLINS: Yes, boy, that absolutely is the heart of the battle. We understand it very well now with your words, Ivan Watson, thanks so very much. And we certainly do appreciate the sacrifice of Brian Lane and his family today as well as all of our armed servicemen and women in this battle.

In fact, the latest casualties mean 37 U.S. troops have died this month in Afghanistan. At least nine of them came in Helmand Province in southern Afghanistan. The marines began a push in that area this month.

Since 2001, 666 U.S. troops have died in Afghanistan.

ANNOUNCER: Live in the CNN NEWSROOM, Heidi Collins.

COLLINS: The Dow 9,000, we're there. But for how long? Let's go to Susan Lisovicz at the New York Stock Exchange for a preview. I don't want to be a nay-sayer, just want to be a realist.

Hi there, Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: Good morning, happy Friday, Heidi. There is applause on the trading floor for the opening bell and perhaps for this extraordinary streak that we've seen.

COLLINS: Yes.

LISOVICZ: The Dow closed yesterday above the 9000 mark. And that is the highest level since November. And for the NASDAQ, Heidi, today would be lucky 13. That index...

COLLINS: Don't say that out loud.

(LAUGHTER) LISOVICZ: You're right. I could jinx it, but the NASDAQ has been up for the past 12 sessions. We haven't seen that since 1992. And we're expecting a little bit of buying at the open. This comes despite some weak corporate earnings.

Microsoft's fourth quarter profit dropped nearly 30 percent. The big focus is on the company's sales. Microsoft's annual revenue fell for the first time since the company went public way back when in 1986.

Microsoft shares are down 8 percent and actually we're seeing the NASDAQ give back a little bit. We're seeing a little bit of upselling at the open.

Meanwhile, American express said its quarterly profits were nearly cut in half, largely because the credit card company repaid its government bailout money. We've seen that before earlier this week with Morgan Stanley. AmEx also battling a big drop in consumer spending and rising loan defaults. AmEx shares also feeling a little bit of weakness.

Finally, the nation's top two money men scheduled to testify on Capitol Hill later today, certainly doing a lot of talking.

COLLINS: Yes.

LISOVICZ: The Fed Chief Ben Bernanke and Treasury Secretary Tim Geithner expected to talk about the president's financial regulatory reform proposals.

Checking the opening numbers, the Dow is off by 1/3, the NASDAQ is down 1.5 percent. We saw a weak open yesterday and quickly rallied, though. Each of these averages have climbed at least 11 percent over two weeks. It's really been remarkable, Heidi.

COLLINS: All right. Well, I will confine and constrain my excitement.

LISOVICZ: Savor that. Savor that.

COLLINS: All right. Susan, thank you. We'll check back later.

Meanwhile, President Obama shifting his deadline on health care reform, but not exactly by choice.

(COMMERCIAL BREAK)

COLLINS: Top Senate negotiators are telling President Obama they need more time to work on a bipartisan health care reform bill. And they won't meet his August deadline for a vote.

Joining us now live, CNN White House correspondent Suzanne Malveaux with more on this.

Suzanne, this is a pretty big deal. I mean, I think everybody sort of saw this coming, but he was emphatic in the very beginning about getting this reform passed before the recess.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: He certainly was. And, Heidi, this is honestly a blow to the administration, but it certainly is not the end of the debate. The strategy here at the White House, keep pushing, keep talking. There's really two parts of this. One of it is behind the scenes, the president getting directly involved.

Later this morning, Heidi, he's going to be meeting with Senate Majority Leader Harry Reid, as well as the Senate Finance chair Max Baucus who is going to sit the two down together. And say what do we need to do? Where are we in this process? What needs to be looked over again to negotiate, to compromise? And how much longer do they believe that they need to get these sides to come together? Not just Republicans and Democrats, but Democrats and Democrats to get them to see eye-to-eye on some of this.

We also expect, Heidi, that the president is going to continue in a very aggressive, very forceful way to get his message out directly to the American people. Going out there, taking these messages to the townhall meetings, to all kinds of different places so he can talk directly to the American people and tell them here's how this is going to impact you.

Heidi?

COLLINS: All right. Well, obviously, as you said, certainly not the end of the debate. We will continue to follow it very, very closely obviously affecting every American.

Our White House correspondent Suzanne Malveaux.

Thank you, Suzanne.

MALVEAUX: Thanks, Heidi.

COLLINS: Meanwhile, Sarah Palin steps down as Alaska's governor on Sunday. She's leaving office less than a year after bursting on to the national stage as Republican John McCain's surprise pick for his vice presidential nominee.

Journalist Libby Casey has followed the Palin's political career as the Washington correspondent for Alaska public radio network. She is joining us this morning live from Washington.

So, Libby, Governor Palin has been using Twitter a lot lately to communicate. In fact, we're going to take a moment and put on the screen something that she twittered the other day.

It says this, "AK-- Alaska, of course -- will progress plus side benefits equals ten days to less politically correct twitters fly from my fingertips outside state site."

Do Alaskans know anything more today than they knew July 3rd about what she wants to do next? Or what her intentions are? LIBBY CASEY, WASHINGTON CORRESPONDENT, ALASKA PUBLIC RADIO NETWORK: Well, the governor has said in interviews that she will be making trips to the Lower 48 to stump for politicians who she supports, possibly even Democrats who share her values. But we're not really sure exactly what comes next.

Twitter has been the best way to get a sense of the governor's mindset. And as you read in that tweet, Heidi, she talks about how she wants to kind of let loose when she leaves office on Sunday. So we're expecting her to talk more about -- not just her opinions about things, but politics, maybe she's been holding back on some stuff.

COLLINS: OK. Well, that's a good tease.

Sunday is her last day, as we have mentioned, and then Lieutenant Governor Sean Parnell will be taking over. This is going to happen at the annual governor's picnic which takes place in Fairbanks. That might sound a little funny to a lot of people in different states, but this is kind of where these types of things happen, right?

CASEY: Well, this is totally unprecedented, but yes. The governor is going to picnics throughout the state over the next couple of days. Wrapping up in Fairbanks.

And what's usually a real hometown celebration celebrating the gold rush history and their, you know, Pearisburg competitions and stuff like that. But this year everything is entirely different because the governor is making this a dramatic -- you know, this dramatic, historical day out of it. So we will be seeing the governor step down, and Lieutenant Governor Sean Parnell take the reigns. And Palin was tweeting this past week about how she's been crafting her speech. We're not sure what it's going to say yet.

One interesting thing about Palin's legacy, because we're all reflecting on her two and a half years in office now is we're going to be watching to see what he does. Does he continue things that she started? It sounds like at this point he does plan to kind of stay the course.

(CROSSTALK)

COLLINS: Yes. Well, what's the relationship?

CASEY: Yes. They have a close relationship from all intents and purposes, from what we can see on the outside. And he's keeping all of the cabinet members, key staff. And when I've talked to staff, they've said that they want to stick around, they want to work through this transition because they feel like they owe it to the people of Alaska, which is sort of interesting given the fact that Governor Palin has chosen to step down which is creating this big momentous change in Alaskan politics.

COLLINS: Can you update us on these ethic charges? What is the basis? Where does it stand now? Has anything solidified? Is it moving forward? What's the scoop on that? CASEY: Well, the state hired an investigator to look into charges that the governor created -- encouraged the creation of a trust to benefit her. And the investigator found that there may be some wrong doing there.

It's important to note, though, this is a preliminary report that was leaked to the press. This is not a decisive account of what happened or what the governor may need to do next.

The woman who started the trust, which is said a legal defense found said Palin is not involved in it. So we're still watching this process play out. An interesting note, Heidi, Alaska state law says charges of ethics violations can still be brought within two years after the facts. So this may not be the end. And Governor Palin may have to deal with this as a private citizen as she moves forward.

COLLINS: Yes. I'm willing to bet she probably knew that whether or not, you know, it had anything to do with her stepping down from the governorship as she mentioned. She wanted to leave the state alone so they could progress because this was apparently hampering in what she was going to be able to do.

Speaking of, do you think Alaskans are going to really remember her as their governor? Or is it always going to be as a vice presidential nominee.

CASEY: I think Alaskan will remember her as a governor. A lot may depend on, though, what she does decide to do next. Will she stay in Alaska? Will she work for the betterment of the state? Or will she decide to spend more time on the national stage?

You know, only in office for two and a half years, things dramatically changed when she was picked for the VP slot. That's 10 months. That's 10 months we've been doing this now. That's one-third of her time in office. So, that really has colored how people will look at her legacy.

COLLINS: As she walks out the door, her approval rating. Do we have the latest figure on that?

CASEY: Well, the Washington Post-ABC Poll came out today that shows that a majority of Americans actually have negative approval -- have a negative take on her. But 70 percent over the Republican base does still support Governor Palin and does think highly of her.

(CROSSTALK)

COLLINS: I was wondering about Alaskans, where she was the governor.

CASEY: Yes. We're still watching to see how kind of public opinion weighs out. It's really a mixed bag. Her poll numbers have plummeted, but that's really since this VP run. They may be able to stop now, but once she gets out of office, things calm down a little bit, and we'll see what she does next.

COLLINS: All right. Very good.

Hey, we appreciate.

CASEY: Thank you.

COLLINS: Libby Casey, it's been a pleasure talking with you.

CASEY: Thank you.

COLLINS: Washington correspondent for Alaska public radio network. Thanks once again.

Just minutes ago in California, lawmakers there approved a plan to close their massive budget gap. Lawmakers worked through the night, passed bills that will shave $26 billion from this year's budget. The cuts, though, are painful and deep as you would imagine. Nothing has been spared, including programs for health, welfare, and education. California's been operating without a budget for weeks now forcing state to pay its bills with IOUs.

Hey, you're planning to have a salad today? Well, there is a nationwide recall of a certain type of lettuce. We'll tell you about it, and what you need to know.

(COMMERCIAL BREAK)

COLLINS: The number of swine flu cases has soared in England. Just listen to these statistics now. There were 100,000 new cases of H1N1 last week alone. Health officials say a majority of the patients are children under the age of 15. And most cases have been mild.

But on our blog, we are asking you this question of whether or not you would volunteer to test this new swine flu vaccine that they are working to develop. Of course they have to test it on somebody, so we want to know if you'd be interested in being one of those somebodies.

Well, our first blogger says this. Karen, "Yes, of course, I'd volunteer. I would rather be part of the solution than to wait to get the disease and be seriously ill."

Next from Gary, "Offer the swine flu vaccine to prison inmates in exchange for a reduced sentence. This saves the taxpayers money to keep them in prison and provides human subjects for the vaccines."

Finally Victor asks, "How much are we talking about here?"

OK, good question. I want to make sure that we ask you to add your thoughts to this. Always inviting your comments. Just go to our blog at cnn.com/heidi.

A seminal scare prompting a nationwide recall of one brand of romaine lettuce. One head of lettuce tested positive for the bacteria in Wisconsin. It was distributed by Tanimura & Antle Fresh Foods. Now the lettuce would have been purchase before July 23rd with this code 531380. The recall is only for full heads of lettuce and not the pre- washed, pre-cutlet lettuce that you can buy in bags.

At a California interstate, a car flips over and bursts into flames. A 3-year-old is trapped and a hero arrives on the scene.

(COMMERCIAL BREAK)

COLLINS: In Los Angeles, praise for a hero. John McDonald was on his way to work when he saw a car flipped on its side and engulfed in flames. Three people had managed to escape the burning vehicle, but a 3-year-old was still trapped inside.

(BEGIN VIDEO CLIP)

UNIDENTIFIED REPORTER: What's going through your mind through this whole thing?

JOHN MCDONALD, HIGHWAY HERO: I thought we were both going to do to be honest with you.

It was funny when I pulled her out of the car, I dragged her into my car, and she said, that was really scary. And I was thinking you have no idea. I was pretty shook up.

(END VIDEO CLIP)

COLLINS: It's not the first time we've seen this type of video this week alone, is it?

Here you can see just how spectacular that fire is, in fact. Two of the victims in the crash were taken to the hospital, but both are expected to survive. And McDonald by the way says he is actually embarrassed by all of the attention.

Rob Marciano standing by now to talk a little bit more about the weekend weather. We all want to know no matter where we live if we're going to be able to have lovely weather to do things outside.

(WEATHER REPORT)

COLLINS: All right. Rob Marciano, we'll check back a little later on. See you later.

ROB MARCIANO, AMS METEOROLOGIST: See you.

COLLINS: There is an awful lot going on in the next hour of the CNN NEWSROOM. And our crews are in place to break it all down for you. Let's begin with Susan Lisovicz who is keeping her eye on the Dow.

Hey, Susan.

LISOVICZ: Yes. The numbers have been remarkable over the last two weeks, Heidi. The Dow is above 9,000 and at its highest level of the year. The NASDAQ may snap its longest win streak, however, since 1992. I'll have all the numbers and all the action in the next hour.

ALISON KOSIK, CNN CORRESPONDENT: I'm Alison Kosik in New York. Millions of Americans are getting a raise today as the federal minimum wage hits $7.25 an hour. But with unemployment at a 26-year high, can the job market handle it? Heidi, I'll have that at the top of the hour.

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: What do you do when the hospital -- what do you do with a hospital, you walk out of the hospital with a gigantic bill? It's David and Goliath situation, but I'll teach you how to fight it. I'll have that at the top of the hour.

COLLINS: OK. Good.

Thanks, everybody.

Also, making a difference from 1600 Pennsylvania Avenue. African-Americans in the forefront and behind-the-scenes at the White House.

(COMMERCIAL BREAK)

COLLINS: The doctor with Michael Jackson when he died is being investigated for possible manslaughter. Texas investigators have released documents detailing the items taken from Dr. Conrad Murray's Houston office and storage unit on Wednesday. Samples of prescription medications, computer hard drives and several documents were seized. Murray is scheduled to meet with investigators for a third time later this week.

It's the home Michael Jackson never got a chance to buy. A permanent residence in Las Vegas where his realtor says Jackson wanted to build a life. CNN's Drew Griffin from our special investigation's unit got an exclusive look inside the home even Michael Jackson had to save up for.

(BEGIN VIDEOTAPE)

DREW GRIFFIN, CNN SPECIAL INVESTIGATION'S UNIT CORRESPONDENT (voice-over): It's the home Michael Jackson wanted but at the time even he couldn't afford. According to his Las Vegas realtor, Zar Zanganeh, this 10-acre walled estate was to be Michael Jackson's Vegas Wonderland.

ZAR ZARGANEH, MICHAL JACKSON'S REALTOR: This is the only house I showed Michael out of probably ten or a dozen where he came outside. And he came outside with no umbrella, no mask on, just came out here with the kids to see the grounds of the property.

Through this here, we have apartments. It's about 1,000 square feet, and the kids wanted to make this into the play room, and Michael loved that idea.

GRIFFIN: Instead, Zanganeh placed Jackson and his family in this lease home. It was not up to par, says Zanganeh, but Jackson was building a life in Las Vegas and also trying to build back his wealth, entertaining casino owners who were offering Jackson deal after deal to make him stay.

ZARGANEH: I know that Michael really liked the idea of being able to perform in one location night after night. He loved the fact that the kids could actually have a place to call home and not move around with him, since they're always going everywhere with him. That was an idea that very much appealed to him.

There is a couple secret tunnels through here.

GRIFFIN: The estate is filled with quirky appeals, secret tunnels leading to a gun range Jackson wanted to turn into a music studio, a barber chair in the master bath, a full gym, theater room, and a 20-car garage where he and his family could load into and out of cars out of view.

(on camera): What was he most interested in when he'd come into a house like this?

ZARGANEH: Michael's biggest concern was in my opinion was always the safety of his children.

GRIFFIN (voice-over): At the time, just back from his self-exile in Bahrain and Ireland, Jackson simply couldn't afford the $22 million to $25 million price tag. Zanganeh says he believes the concert tour would have been Michael Jackson's pathway back to this house, a permanent show in Las Vegas, and a new retreat he would've called Wonderland.

Drew Griffin, CNN, Las Vegas.

(END VIDEOTAPE)