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Minimum Wage Hike Enacted; Health Care Plan Stalled in Congress; Political Figures Arrested in New Jersey; Deadly Month in Afghanistan; Advice on How to Deal with Private Health Insurance Companies

Aired July 24, 2009 - 09:57   ET

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

HEIDI COLLINS, CNN ANCHOR: Here's some of the other stories we're watching right now. A pair of astronauts, moments away from starting another space walk. Today's work on the international space station could take nearly eight hours. They have more to do today because Wednesday's space walk was cut short because of a faulty space suit.

Deposed president Jose Manuel Zelaya is headed back to Honduras today. He's in a caravan going through Nicaragua. He said he is going home despite threats by the current government to have him arrested.

No vote on health care until after August. Senate majority leader Harry Reid dealt a blow to President Obama's timetable for reform. He will meet with the president later in the Oval Office today. Right now, though, Republican members of Congress are holding a news conference in Washington to talk about their differences with the president's plan.

Your money back in the headlines this morning, but here's the unusual thing. The news isn't all bad. Wall Street has rallied to its highest level in months. The Dow is up 11 percent just over the past nine days. Might not look like it right now because we are to the negative, but millions of Americans are getting a pay raise. Recession-weary businesses, though, aren't quite ready to celebrate minimum wage, obviously, going up. An awful lot to cover today on the financial front.

CNN's Susan Lisovicz at the New York Stock Exchange to break it all down for us. Hi there, Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: Hi, Heidi.

Well, you know, there is this old expression on Wall Street -- buy in May and go away. That certainly didn't hold true for July, because we are coming off, right now, what has been nothing short of a remarkable run.

The last two weeks we've seen the DOW closing above 9,000, yesterday there for the first time since early January. It's hanging in there right now, but seeing the selloff accelerate just a little bit

The NASDAQ, meanwhile, has been riding a 12-session win streak. That is the longest since 1992. Why is that? Relief, Heidi, relief that corporate America has been telling us that things aren't as bad as we all feared, that the profits, the profits are a little bit better than expected. Of course, the bar was set very, very low.

But what folks are looking for is sales. A lot of the profits have been coming because of massive cost cutting.

And so what you're seeing today, the sell-off, why are we seeing it? Microsoft shares down 10 percent. Microsoft posting its first annual revenue decline since the company went public in the 1980s. So you're seeing sentiment clouded a little bit by that.

But by and large, a great sense of relief, and we'll all benefit from it with our 401(k) statements -- Heidi?

COLLINS: Boy, you got that right. Susan Lisovicz, thanks so much for that.

LISOVICZ: You're welcome.

COLLINS: Let's talk more now about those millions of Americans who are getting a raise today. It's the final stage of the three-step increase in the federal minimum wage passed by Congress two years ago.

But can the economy handle it now? Alison Kosik breaking it all down for us from New York this morning. It is kind of a tricky one, because who knows what it will do for, I guess, at least small businesses, right?

ALISON KOSIK, CNN CORRESPONDENT: There really is a lot of debate on how this will impact the economy. The federal minimum wage raises 70 cents today to $7.25 an hour from $6.55. For a full-time worker that comes to a little more than $15,000 a year. Workers in 29 states will get the raise.

In 21 other states, workers won't feel it because those states already paid more than $7.25 an hour. The Economic Policy Institute is estimating it will mean higher wages for about 4.5 million people, Heidi.

COLLINS: Yes, but unemployment, as everybody has been pretty well aware at 9.5 percent, a 26-year high on that. You raise the minimum wage and some people might not be able to pay their employees, and then does that number go up, too?

KOSIK: Some economists, Heidi, are worried this could bring more job cuts. Companies are weighing every position these days, and when workers get too expensive, they may let some people go or at least cut their hours.

And this could be especially true in the retail and restaurant businesses. Both rely heavily on low-wage workers.

It's also possible businesses could pass the higher costs on to consumers. But advocates say workers need a higher minimum wage now more than ever, and some analysts say it can even boost the economy by getting more money into the pockets of people who will spend it rather than save it.

So, what do you think? We're getting lots of comments on CNNmoney.com right now. James in Atlanta writes, "I work in fast food right now. The increase in minimum wage will raise my salary, but it is far from a living wage."

COLLINS: Yes.

KOSIK: We also got one from Paul in L.A. He says that "raising the minimum wage is self-taxation through inflation on everyone. There's no free lunch. Minimum wage should be abolished."

Heidi, you can always count on strong opinions on both sides of this issue. Back to you.

COLLINS: Absolutely, and that's why we love our viewers.

KOSIK: Exactly.

COLLINS: Alison, thanks so much. Appreciate it.

Now let's turn to Capitol Hill for a moment, where lawmakers are taking a closer look at the nation's financial crisis. Right now, in fact, the House Budget Committee is holding a hearing on the economic recovery package. Is it doing enough to strengthen our economy?

And later this hour, the question of who should our top consumer watchdog be? Federal Reserve Chairman Ben Bernanke wants that role to remain with the central bank. Treasury Secretary Timothy Geithner wants to create an entirely new agency.

President Obama forced to move his deadline for health care reform from the summer to the fall. Top Senate negotiators say they need more time to hammer out a bipartisan bill, and they won't be able to hold a vote in August as President Obama had wanted.

Joining us now live from Capitol Hill, CNN's Congressional Correspondent Brianna Keilar. Yes, there seems to be a big shift here. Where does Congress stand now on health care?

BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: You know, Heidi, President Obama said he wanted the House and the Senate to vote on health care before they left here in the next week or so for August recess.

As you said, not going to happen in the Senate. We heard that from the top Democrat in the Senate, Harry Reid, and it's because of what's going on in the Senate Finance Committee, where a bipartisan group, a small group of Democrats and Republicans, they're trying to hammer out a compromise.

They're trying to figure out a plan that can get some of those centrist Democrats and Republicans in the Senate onboard to move this through. But the Senate Finance Committee chaired by Max Baucus -- that man right there -- they need more time.

And because of that, Max Baucus, Harry Reid, they are going to be over at the White House today meeting with President Obama.

Now, there's a whole other situation, as you know, Heidi, over in the House of Representatives. House Speaker Nancy Pelosi is basically with an insurrection by some blue dog Democrats, some of these fiscally conservative Democrats who are taking issue with the cost.

We've been talking about this, how do you pay for health care? They have issues with that.

But the difference here, Heidi, is that Speaker Pelosi says that she still has her eye on a vote before the August recess. We're going to have to wait and see if that happens, Heidi.

COLLINS: Yes, in fact, that division between House Democrats has actually created sort of an opportunity for Republicans who completely oppose their plan. They're making their point with an interesting visual aid.

KEILAR: Yes, they are making their point with a visual aid, and this is it right here.

COLLINS: No way -- you have it. All right, hit it

KEILAR: This is a flow chart. If you can take a look right next to me, this is put together by the Republicans. It's supposed to be their flow chart of the Democrats' plan.

And as you can see, it's quite a mess, Heidi. And that's really the point of it to show, in their opinion, how complicated the Democrats' plan is. They have been taking this down to the House floor to make that point. Take a listen to what they've said.

(BEGIN VIDEO CLIP)

REP. JOHN BOEHNER, (R) MINORITY LEADER: This is what it looks like. Now anybody who thinks that all this bureaucracy is needed to fix our health care system, I would politely disagree.

REP. DAN BURTON, (R) INDIANA: This is the organizational chart of the health care plan the Democrats are proposing.

REP. TODD AKIN, (R) MISSOURI: We're talking about a health care system that's going to have the good heart of the IRS and the efficiency of the Postal System, you know.

Let's take a look at some of these different government agencies and how much do we really want to trust them with our personal health care.

(END VIDEO CLIP) KEILAR: Now, Democrats say that this here is a complete exaggeration, that what they're really trying to do is streamline the process for getting health insurance, and that, really, it's a quite simple process underneath their plan.

They say if you want a really complicated flow chart, you should look at a flow chart of the way the health care system stands right now. And Heidi, I have to show you what they are floating, what Democratic aides are floating as their portrayal of a Republican plan.

COLLINS: I knew there would be another one to look at.

KEILAR: See that, all these question marks.

COLLINS: I don't get it.

KEILAR: This is their tongue in cheek, because House Republicans are not putting together a bill. So, they're kind of saying, here, you don't even have anything, so we can't even make a flow chart out of your plan.

COLLINS: I don't know if your cameraman can pan down just a bit, but I'm just wondering if Ross Perot is down there holding up that placard there.

(LAUGHTER)

KEILAR: I know. It takes you back, doesn't it?

COLLINS: A little bit.

All right, Brianna Keilar, thanks for staying on top of the story. Appreciate it.

Back to the story that we first told you about yesterday in the show -- dozens under arrest in New Jersey. Federal agents taking several New Jersey mayors and religious leaders into custody. They are charged with a range of illegal activities, like taking bribes and an international money laundering scheme.

CNN's Deborah Feyerick has the story.

(BEGIN VIDEOTAPE)

DEBORAH FEYERICK, CNN CORRESPONDENT: It began as an investigation into international money laundering, allegedly by a handful of prominent New Jersey rabbis with ties to Israel.

It turned into a far reaching probe of public corruption in New Jersey as nearly 30 politicians and public official, Democrats and Republicans, were rounded up in what prosecutors called the largest sweep of its kind.

WEYSON DUN, FBI SPECIAL AGENT: This case is not about politics, it is certainly not about religion. It is about crime, corruption. It is about arrogance. It is about a shocking betrayal of the public trust.

FEYERICK: The two cases are linked by a single cooperating witness posing as a real estate developer, but, in fact, working for the governor, says New Jersey's top prosecutor.

RALPH MARRA, JR., ACTING U.S. ATTORNEY: I don't donate, I invest, the C.W. would say, in meetings, in parking lots, at restaurants, luncheonettes, diners, offices, basement boiler rooms, and bathrooms. And the politicians willingly put themselves up for sale.

FEYERICK: Prosecutors say public official officials, including mayors, deputy mayors, councilmen, and a New Jersey assemblyman, brazenly took envelopes stuffed with thousands of dollars in bribes in exchange for political favors.

One of the most damaging statements allegedly made -- Hoboken Mayor Peter Cammarano III, who allegedly took $25,000 in bribes, telling the phony developer he would become a priority, while "The people who are against us the whole way, they get ground into powder."

Prosecutor Ed Kahrer has been working the case for ten years.

ED. KAHRER, FBI PUBLIC CORRUPTION DIVISION: Corruption is not only pervasive, it has become ingrained in New Jersey's political culture.

FEYERICK: New Jersey Governor Jon Corzine criticized the election while asking one of his staff to step down after he was investigated but not charged.

GOV. JOE CORZINE, (D) NEW JERSEY: This morning I ask for the resignation of Commissioner Joe Doria, and he has agreed to resign.

FEYERICK (on camera): Prosecutors say the same cooperating witness who has allegedly been paying public officials bribes had earlier infiltrated the money laundering organization, which involved rabbis allegedly taking fees for laundering millions of dollars through their charitable organizations.

Deborah Feyerick, CNN, Newark, New Jersey.

(END VIDEOTAPE)

COLLINS: In fact, the arrest of those rabbis is big news back in Israel. It's making the front pages of the major newspapers in Jerusalem. Investigators say five rabbis in New Jersey set up charitable organizations to launder $3 million.

One other man arrested in the crackdown is accused of trying to sell a human kidney. Of course, we'll stay on top of this story for you.

Marines exchanging heavy gunfire with insurgents. We're there with the troops as they lose one of their own.

(COMMERCIAL BREAK)

COLLINS: A deadly month getting worse in Afghanistan. Two more U.S. troops are dead this morning, killed by insurgents. Another marine was lost in a battle with Taliban fighters yesterday.

Our Ivan Watson is embedded with that Marine's unit in the dangerous Helmand province. He's able to join us right now with the very latest. Ivan, good morning to you.

IVAN WATSON, CNN INTERNATIONAL CORRESPONDENT: Good morning, Heidi.

The Marines here are working hard. This must be one of the world's hardest jobs, because they're also coping with the loss of one of their comrades yesterday, Sergeant Ryan Lane. He was killed by mortar fire coming in the direction of the improvised camp where I'm located right now.

The Marines retaliated. They fired artillery at the point of origin of this mortar strike. They then fired some more mortar rounds later in the day, and they killed what they say is one suspected insurgent.

But they lost this Sergeant Ryan Lane mortally wounded. He was 25 years old from Pittsburgh, Pennsylvania, a rabid fan of the Pittsburgh Penguins, who showed off his T-shirt when his wife sent it out to him here.

He had also been studying the local languages Dari and Pashtu on his free time to try to try to better communicate with the people here, and we have a photo submitted by one of his comrades of him giving candy to a child.

Now, he is one of the Marines from the Delta company of the reconnaissance battalion who have been stationed at this place they call the castle. It's the southernmost point that the U.S. Marines have advanced to since they launched an offensive into turbulent Helmand province earlier this month.

It's about 70 miles from the Pakistani border, and no foreign forces have moved to this point in several years, at least. This are where I'm located right now was controlled by the Taliban up until a short while ago.

We went out with Marines and Afghan national police on a joint patrol in a neighboring bazaar just a few hours ago. Let's look at that report, Heidi.

(BEGIN VIDEOTAPE)

WATSON (on camera): This is the main bazaar. The castle where the Marines have set up operation is right over here, right next door. You may be able to see the concertina wire.

And there are some local Afghan government officials who have set up, as well as Afghan soldiers, and so on. If you look down this street, today is Friday. It's supposed to be the busiest day of the week. And the bazaar is all but deserted. These shops are all boarded up.

And around the corner, even, the bakery which sells the staple food for Afghans is closed. We're hearing that someone in the baker's family has been kidnapped.

There's an experiment under way here right now. The Afghan national police have arrived, a group of 50 police officers, and the police commander is trying to reach out to what locals are here today.

And this is part of the attempt to extend the authority of the Afghan central government to a part of Afghanistan that has effectively been ruled by the Taliban for some four years, at least.

The experiment has just begun, and it's off to a rocky start. There was fighting yesterday, artillery outgoing from the Marines, mortar fire coming in from the insurgents, actually landing in this castle itself.

And the locals that we have spoken with here say if this fighting continues, they're just going to pack up and leave. They don't want to be caught in the middle of this fight.

(END VIDEOTAPE)

WATSON: So here we have the Marines. They just lost one of their comrades. Two other Marines from this very same company killed last week, Heidi, in a deadly roadside bomb.

And they're still going ahead with this very difficult mission of trying to help set up a fledgling provincial government here -- Heidi?

COLLINS: It's so obvious that they absolutely have their hand full, I mean, even to the point, Ivan, where it seems like they are doing everything they can to ward off the insurgents, when one of the missions in Afghanistan was also to be training Afghan troops, Afghan police.

Can you give us an update on how that part of the mission is going right now?

WATSON: Well, this has been a process, Heidi, that has been going on for nearly eight years. Not only the U.S. military has been involved in it, but other coalition partners here have been trying to train the Afghan national police and the Afghan national army.

But from what we can see here, it is still the U.S. military that is the point of the spirit here, trying to take back territory from Taliban insurgents. Then they bring in Afghan national army soldiers, but in much smaller numbers than the foreign troops.

Then bring in Afghan national police, again, in much smaller numbers and not nearly as well-equipped, not nearly as well-trained. And there are widespread complaints around Afghanistan that the police, in particular, are corrupt, that they demand bribes from locals, and that some of the locals hate the police in some ways almost more than the Taliban themselves.

So, this is a big challenge. Eight years after the Taliban was overthrown, the Afghan central government is still a shaky project, and it's still very difficult to extend its authority anywhere beyond the Afghan capital -- Heidi?

COLLINS: Boy, oh, boy. Very clear now. We sure do appreciate it. Our correspondent Ivan Watson embedded with U.S. troops. Thanks so much, Ivan.

In fact, I want to update you on the latest casualties -- 37 U.S. troops have died this month in Afghanistan alone. At least ten of those deaths came in Helmand province in southern Afghanistan.

The Marines began a push in a province this month. Since 2001, 666 U.S. troops have died in Afghanistan.

(WEATHER BREAK)

COLLINS: Paying more than $1,000 for an E.R. visit. How much of that does the insurance company actually pick up? Take a guess. Fighting back against big bills in our "Empower Me Friday" segment.

(COMMERCIAL BREAK)

COLLINS: Well, it's "Empower Me Friday," and you know what that means. We are answering your questions on health care, and inevitably, we have a lot of them.

Elizabeth Cohen is joining us now to help you become a more empowered patient.

So here's the deal. I want to dive right into this, because the first e-mail is from Kwe, who says "In June I was charged $1,065.57 in the emergency room for just cutting two blisters from my foot and writing a prescription. Insurance only paid 75 bucks."

That's a lot, right? I mean, that's kind of outrageous. What can you do?

ELIZABETH COHEN, SENIOR MEDICAL CORRESPONDENT, CNN: Right, Kwe almost owes $1,000 to the emergency room for two toe blisters.

So we asked some medical advocates, billing advocates, what can he do? And they said, look, there are several things he can do. First of all, he needs to go to his insurance company and say, what is up here, $75 on a $1,200 bill? That is crazy.

They gave him some bureaucratic paperwork reason. He needs to fight them he needs to appeal that decision.

We're told by experts most of the time when you appeal an insurance company's decision, you actually win. So go for it, the odds are with you. And find an advocate to help you do that. It's very David and Goliath -- you're fighting this big insurance company. There are advocates, medical billing advocates who can help you do that.

And if you go to CNN.com/empoweredpatient, we have all these links where you can find advocates to help.

COLLINS: Great, because it seems like it never hurts to at least ask. You need to have that conversation.

But what if the insurance company says no?

COHEN: Then what he needs to do is Kwe needs to go to the hospital and say, look, first of all, give me an itemized bill, because do I really owe this much money?

And second of all, he can just say, look, I can't pay you 1,200 bucks. I can pay you $500. Here it is. Give them a certified check, and a lot of times the hospital will be like, we'll take it, because they know there is a great chance that you will never pay anything, so sometimes they will actually take a check for a half, a third, or even a quarter just because they want something out of you. Something is better than nothing.

COLLINS: Yes, understood.

Are there some lessons we can take away from his experience?

COHEN: Yes, there definitely are some lessons.

First of all, you should try to get an idea, is this hospital ripping you off? And what you can do is you can go to a Web site called changehealthcare.com, and you can put in your city and put in something like "emergency room visit," or whatever, and they'll tell you about how much it should cost, because $1,200 is a lot of money.

COLLINS: So you could really get that specific? You could say toe blisters or whatever --

COHEN: Not necessarily. But you can say "emergency room simple visit," or you can do that.

So one of the things that Kwe would have noticed if he had gone to that website is that a doctor's visit, just going to the doctor to get your toes looked at, is about $100-$150. He would have saved a lot of money if he hadn't gone to the emergency room.

(CROSSTALK)

COHEN: Just how bad were these blisters? We don't know.

But it definitely makes you think, if he had just waited until the next business day, he would have saved himself like $1,000.

So you want to think about that, and that Web site will tell you an office visit versus an emergency room, and then you can make an informed decision, because right now you go to the ER or the doctor, you have no idea how much things cost, no idea.

So this Web site gives you a little bit of an idea of what things will cost.

COLLINS: And maybe he was dealing with an infection or something. We don't know.

But I do know that we're always getting a lot of questions for "Empower Me Friday."

COHEN: We sure are. And if anyone has a question for me, you can write to empoweredpatient@CNN.com, and maybe we will answer your question next Friday on "Empower Me Friday."

COLLINS: I want to start some myself.

COHEN: Oh, there we go, OK.

(LAUGHTER)

COLLINS: Thank you, Elizabeth, appreciate it.

The officer who arrested a prominent Harvard professor tells his side of the story.

And more storm clouds are gathering over New England. Rob Marciano in our Weather Center.

(COMMERCIAL BREAK)

COLLINS: Lawmakers are taking a closer look at the nation's financial crisis today. Right now, the House Budget Committee is holding a hearing on the economic recovery package. Is it doing enough to bolster the economy?

Also this hour, the question of who should be our top consumer watchdog. Federal Reserve chairman Ben Bernanke want that role to remain with the central bank, but Timothy Geithner wants to create a new agency.

We are keeping a close eye on the markets this morning. The Dow began the trading day above the 9,000 mark -- hasn't happened in a long time -- but big-name companies like American Express and Microsoft released their earnings last night and there are some significant weak spots.

Susan Lisovicz on the floor of the New York Stock Exchange with the latest. Things have improved a little bit. Down 23 points now early in the trading day. Hi, Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: Hi, Heidi. We're still above 9,000 and still at the highest level of the year for the Dow. The bottom line is this. Everybody in America wants to know when will the economy get better?

So, the focus on Wall Street last week, this week and next week is what corporate America has to tell us in its quarterly report cards, and by and large things are better than expected. Now, could be for a couple of reasons. Corporate America has been shedding jobs and cutting costs wherever they can. They've also set the bar pretty low. But the bottom line is the theme is better than expected, and the market has rallied big time on top of it.

We've even had a number of companies raising forecasts for the year. Very diverse companies like Hershey's Chocolate, Wyeth Pharmaceuticals, 3M, a big industrial company.

That brings us to today. Two heavyweights, both reporting significant weaknesses. You said Microsoft reporting its first annual revenue decline since the company went public in 1986, and American Express saying that its year-over-year profits fell by nearly 50 percent. Microsoft shares are down 10 percent. That's hurting market sentiment. You see right now the Dow giving back a little bit, 23 points. And both are Dow 30 companies, by the way, and the NASDAQ is down more than 1 percent. That's in the early going, Heidi.

COLLINS: OK. Well, some of the analysts are saying the economy is stabilizing. But shouldn't we be seeing that these companies are doing even better, if that's the case?

LISOVICZ: Well, yes. You know, you have to look at sales in particular now. Like I said, a lot of the profit is due to cost cutting. Massive amounts of cost cutting. When are consumers and businesses spending? That's what hurts Microsoft. Businesses aren't spending.

For American Express, consumers aren't spending. You're really seeing a dramatic jump there. American Express total consumer spending in the last quarter was $1.7 billion. Huge number, right? But down $2.7 billion, I'm corrected here. But, but it's still down 15 percent from year-over-year.

So, you really need that. That's the juice that gets this economy going. We're going to be hearing from retailers soon, and they will shed further light on what exactly we are or not doing.

COLLINS: All right, very good. Susan Lisovicz on the floor of the New York Stock Exchange. Thank you.

LISOVICZ: You're welcome.

COLLINS: As you know, the minimum wage goes up today. It is now $7.25 an hour. That's up from $6.55 an hour. Here's the rise over the past four years, in fact. The raise only applies to the 30 states, though, that don't already have an even higher minimum wage. Several states don't actually have one at all. Analysts fear the move could hurt small businesses, forcing them to lay off people because they cannot afford to pay the higher wage.

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 vote until after the upcoming August recess. That means September at the very earliest, and that is a big setback for the president, who has been making a public push for Congress to act before the August break.

But Senator Reid says lawmakers need more time to negotiate a bipartisan plan. President Obama says he's okay with the delay as long as lawmakers keep working on the legislation. The president is scheduled to meet with Senator Reid and Senator Max Baucus less than an hour from now.

On our blog this morning, we're asking for your thoughts on the debate over health care reform, and we'll let you know what some of our bloggers are saying this morning.

The first one from Peggy. She says, "We have been discussing the need since Harry Truman was president. So I don't understand why the concern about putting this on the fast track. I say Obama's right to push this bill through. Of course, we'll have to tweak it later, but we have to get this done."

This one from Diana. "Until the government can give decent care for our military and disabled veterans, I cannot believe they will do anything adequate for the rest of us." If you want to add your thoughts, we welcome them. Go to our blog at CNN.com/heidi.

Rob Marciano has all the latest on the severe weather. I guess we shouldn't call it super severe.

ROB MARCIANO, AMS METEOROLOGIST: Definitely not super severe, but severe to some folks. Eastern new England seeing quite a bit of rainfall and wind this morning, and a storm rolling through the western Great Lakes and upper Midwest. Certainly disrupting some travel for this weekend. Weather is coming up in just a few minutes. Talk more about that.

The CNN NEWSROOM with Heidi Collins is coming right back.

(COMMERCIAL BREAK)

COLLINS: The arrest last week of a Harvard professor has reignited the debate over race and police for some people. Friend and coworkers called Sergeant James Crowley a principled police officer, not a racist. He talks with Kim Khazei from our Boston affiliate WHDH last night. His first comments directed to President Obama.

(BEGIN VIDEOTAPE)

SERGEANT JAMES CROWLEY, CAMBRIDGE POLICE: 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-TV CORRESPONDENT (voice-over): Sergeant James Crowley, sitting down with 7 News, reacting to Barack Obama's comments about the day he arrested Harvard professor Henry Gates and talking extensively for the first time what happened at the Cambridge house. CROWLEY: I asked him if he could step outside and speak with me. He said, "No, I will not. What is this all about?" I said, "I'm Sergeant Crowley from the Cambridge Police Department, and I'm 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: It was a report that there were 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 is a strange response for someone who has nothing to hide and trying to cooperate with the police.

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

CROWLEY: I was leaving, and 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 (voice-over): Sergeant Crowley said 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 aren't true that he was saying about me at least warranted a response and allow people to see that I'm not the monster or racist or bigot that he has portrayed me to be. This is me.

(END VIDEOTAPE)

COLLINS: Gates' attorney said 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, but he'll wait to say more until after today's news conference by the police union. In fact, you can watch it right here on CNN. It's coming your way today, noon Eastern.

What do you think about the Henry Lewis Gates' arrest? We have to tell you, we have never seen so many responses so fast on a story on a blog for our show. Getting a lot of callers and thoughts coming in. Want to go to two of these callers now. One from Kentucky and the next from Michigan.

CALLER: I think the Harvard professor was totally out of line. That policeman was doing his duty and was there to help this guy.

CALLER: I feel like the black gentleman was in the right. I think the black people in this country, they must wonder when it is ever going to stop.

COLLINS: And here's a look at what some of our bloggers are saying. First, from po8man. "Reports clearly show that it was Professor Gates who made race the issue. Neighbors of Gates confirm his behavior was belligerent. My opinion was that it was Gates' mouth and not his race that got him arrested."

Next from William, "This happens all the time in my community. We as black men are harassed, profiled and arrested all the time, but in my community, we are not affluent or well-known. So, it is pushed under the rug and life goes on. I'm glad America gets to hear and see what really goes on with police and black men."

Finally, from Patricia, "Why are you still talking about the arrest in Cambridge of the professor? Move on. People are concerned about wars, jobs, health care, buying and selling homes."

Love getting your responses in. The lines are still open. Go to CNN.com/heidi or call the Hotline to Heidi number. 1-877-742-5760.

A three-word sign is really causing quite a stir in one Texas community. A family who lived in a town northwest of Fort Worth has a sign posted on their front door that says "Hispanics keep out." Some residents in the neighborhood say it is offensive and would like to see it taken down. A Dallas reporter spoke with a woman who lives at that house.

(BEGIN VIDEOTAPE)

UNIDENTIFIED REPORTER: We're here because of the sign that is posted on the roof of the house.

UNIDENTIFIED FEMALE: What about it?

UNIDENTIFIED REPORTER: Some people are upset about it.

UNIDENTIFIED FEMALE: You know, I don't care. I'm upset about them coming over here illegally, too.

UNIDENTIFIED FEMALE: It does offend people. It is something that is offensive, but, you know, it's just property.

UNIDENTIFIED FEMALE: We think this is our privilege as an American to protect our property.

UNIDENTIFIED REPORTER: Okay.

UNIDENTIFIED FEMALE: This is our property.

UNIDENTIFIED REPORTER: Don't you think it would be okay just to post a sign that said "Keep out" to everybody and not just target one particular race?

UNIDENTIFIED FEMALE: No, because I don't want to keep out everybody.

(END VIDEOTAPE)

COLLINS: Police say the sign does not violate any laws and is an expression of freedom of speech.

Working for President Obama. We introduce you to the young African-American power players working at the White House.

(COMMERCIAL BREAK)

COLLINS: The U.S. Senate passes a defense spending bill of $680 billion, but it's minus a few things, including a jet program for the AP-35. That's the next generation of fighter planes. Earlier senators cut out funds for more F-22 fighters. And still to be worked out, differences with the House bill.

School districts in all 50 states find out today how they can win some of the stimulus money set aside for education. President Obama has earmarked $5 billion to overhaul schools over the next couple of years. He wants states to toughen academic standards and find better way to recruit and keep teachers and track how students are doing.

Time to go to Rob Marciano one more time because there is some meteorological activity in New England, yeah?

MARCIANO: Don't use those big words on a Friday, Heidi. You know how sensitive I can be with that. Slow Friday to get things going across Beantown and northern New England. Again, getting some rain and wind, especially across Maine. It was a rough morning to start through parts of Boston.

Might as well get right to this. If you're doing some traveling today, looks like Boston is off the map. That's good. Things are back to normal at Logan, at least, for the most part. San Francisco seeing an hour delay and Newark also seeing some delays of 45 minutes, and Atlanta and Teterboro seeing some delays.

So, here you go. Here's the radar across New England. That will come to an end in just a little bit and serious storms heading into Rochester, Minnesota down to Sparta and eventually down towards Milwaukee. These may spawn more severe weather as they get closer towards Chicago, but right now, not too shabby.

Some showers developing across parts of the Southwest, monsoon flow so that means more humidity and not that dry heat that we typically talk about. This is the month, month and a half period where they get some humidity and thunderstorms in the afternoon, which of which can be pretty heavy duty at times. Vegas included in what can be a flash flood watch for those folks.

Daytime highs today looking like this, 92 degrees in Kansas City, 97 degrees in Kansas, yes. Could be warmer for this time of year. Eighty-six degrees in D.C., and 82 in New York. Back out West, where the heat continues to build, 96 in Vegas, 103 in Phoenix and little bit cooler along the immediate shoreline. Temperatures will begin to build across the Pacific Northwest. Eighty-two in Seattle. That's pretty warm for this time of year. Tomorrow daytime highs for your Saturday looking like this. Eighty-seven in Seattle and it will be 80 degrees in Denver and 101 in Dallas and 92 in Memphis and 85 degrees New York City. That's relatively speaking, warm for those folks this time of year.

Little splash of color for you there, Heidi. The Aurora Borealis in Saskatoon, Canada.

COLLINS: Looks like an x-ray of some sort of body part.

MARCIANO: Taken from a couple nights ago.

COLLINS: Beautiful.

MARCIANO: You want to see pictures like this? Go to spaceweather.com and our friends there load these things up, and you can choose from a whole gallery of photographs. That's your little weekend project.

COLLINS: More meteorological stuff.

MARCIANO: Ooh. Space meteorological stuff.

COLLINS: That's right. Rob, thank you, appreciate it.

What a great segue. Let's head to outer space. Space shuttle Endeavour astronauts just began another spacewalk moments ago. I think that was the horn for the solar eclipse we keep hearing from a few days ago. Anyway, two of the astronauts trying to give the international space station more fresh batteries. Yes, and the work is expected to take seven-and-a-half hours. This will be the fourth space walk of the mission.

Award winning pop star Usher is in the house talking about his passion. And it's not what you might think.

(COMMERCIAL BREAK)

COLLINS: You know him as an award-winning musician. But there's another side to Usher. He created Camp New Look to provide mentoring and training programs to underserved youth. The camp is coming up on its fifth year. I talked to him about it last hour right here in the NEWSROOM.

(BEGIN VIDEO CLIP)

USHER, MUSICIAN: Mentoring is obviously something that is something that has been very, very valuable and growth and becoming a more responsible American. To be able to give back and give that opportunity to those who are less fortunate and also had a change. It is our youth.

You know, these kids come from underserved communities, but we give them the tools that they need to 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. (END VIDEO CLIP)

COLLINS: And one of those members has gone to his camp. The young lady sitting right next to him had a lot of interesting things to say, as well. Camp New Look is happening at Emory University here in Atlanta, and it's mentoring 130 kids.

In fact, African-Americans are playing key roles in this White House, whether it's helping to push health care reform or education or urban issues. CNN White House correspondent Dan Lothian tells us some have been around Washington for a while, others are in the freshman class.

(BEGIN VIDEOTAPE)

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT (voice-over): They help manage the message and the policies of the president. Hard- driving staffers fueled by coffee and soda.

(on camera): And so that's the fuel.

KAREN RICHARDSON, WHITE HOUSE OFFICE OF PUBLIC ENGAGEMENT: This is the fuel. Like, instead of coffee.

LOTHIAN: No one at the White House dwells on the issue of race, but it's hard to ignore the obvious. Young African-Americans who are now on the inside.

RICHARDSON: Now that I'm here, it's a little surreal and it's an extraordinary honor, but, it's something that you definitely don't take for granted.

LOTHIAN: Karen Richardson, who has been focused on health care for the Office of Public Engagement, is 30 years old. Press assistant Kevin Lewis is 26. And Michael Strautmanis, Valarie Jerrett's (ph) chief of staff, is 40 years old.

As I went behind the scenes, I found loyal aides who have a sense of pride and purpose.

MICHAEL STRAUTMANIS, WHITE HOUSE OFFICE OF INTERGOVERNMENTAL RELATIONS AND PUBLIC ENGAGEMENT: I read all the time about the African-Americans who have had a chance to participate in history, and it seems like the people that have made the most impact have, you know, connected with something beyond themselves.

LOTHIAN: This is their connection, and Lewis has seen firsthand what that can mean, especially to older blacks he meets on the streets.

KEVIN LEWIS, WHITE HOUSE PRESS ASSISTANT: It's almost like they adopt me. Like when their son is there. Someone they know is there.

LOTHIAN: Lewis, who was raised by a single mother in Brooklyn, New York, joined the Obama campaign five days before it officially launched. He rode the wave to the White House and was still pinching himself on his first day at 1600 Pennsylvania Avenue.

LEWIS: I didn't know I could actually walk through the gates of the White House. I walked through the gates, and I couldn't stop smiling.

LOTHIAN: Richardson's journey to the White House began with an internship offer in then-Senator Obama's Washington office.

(on camera): You didn't know anything about Barack Obama?

RICHARDSON: No. He is a guy with Kenyan roots.

(UNIDENTIFIED PERSON SHOOTS BASKET)

LOTHIAN (on camera): Oh! That was...

LOTHIAN (voice-over): Strautmanis shares the president's love for basketball, and as I found out during a shoot around in his office, plays a mean defense.

STRAUTMANIS: You need a little defense, man.

LOTHIAN: He met the first couple in Chicago when he was a paralegal and they were engaged. Now, this lawyer is on the inside looking out and taking friends and family along for the ride.

STRAUTMANIS: You can imagine the call your family members from Air Force one. They are usually so stunned, they really don't even know what to say.

LOTHIAN: All of these White House aides could make a lot more money doing something else, Instead, they're cashing in on history.

VOICE OF LEWIS: You can't really put a price on what I'm doing now and you can't put a price on what it represents.

LOTHIAN (on camera): All three people that we profiled said they're using this platform to mentor other people and give speeches about their experiences and how they got here. It's a chance to show that with hard work, the options and possibilities in life are limitless.

Dan Lothian, CNN, the White House.

(END VIDEOTAPE)

COLLINS: Stories like this in "Black in America 2." If you missed our CNN documentary, you can see it again in its entirety this weekend. Saturday and Sunday night at 8:00 p.m.

I'm Heidi Collins. Have a great weekend, everybody. CNN NEWSROOM continues now with Tony Harris.