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American Navy Pilot's Remains Found; Three American Hikers Detained in Iran; Popular Cash for Clunkers Program; Disney World Increases Ticket Prices

Aired August 02, 2009 - 16:00   ET

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

FREDRICKA WHITFIELD, CNN ANCHOR: After 18 years, a grim mystery is solved. We finally know what happened to the American Navy pilot who disappeared in the first hours of the Gulf War.

And three Americans detained in Iran after reportedly wandering over the border from Iraq. Swift diplomats are trying to find out exactly what happened.

Hello, everyone. I'm Fredricka Whitfield and you're in the CNN NEWSROOM.

The remains of the first American lost in Operation Desert Storm have finally been found. The Pentagon today confirming that remains recently found in Iraq are those of Michael Scott Speicher, the Navy pilot shot down on the first night of the war in 1991.

Pentagon correspondent Chris Lawrence is tracking these developments.

He is joining us from Los Angeles -- Chris.

CHRIS LAWRENCE, CNN PENTAGON CORRESPONDENT: Well, Fredricka about a month ago, an Iraqi citizen came forward and told the U.S. Military about the possible location of Captain Speicher's grave. And it was in an area very close to where the Military had found pieces of his shattered airplane way back in 1993.

Now the Marines went to that part of the desert where another Iraqi citizen told them he remembered an American jet crashing and told them he was there when the Bedouins found Captain Speicher's body near the crash site and buried him there.

So the U.S. Military went out to that site and it took several days over the past week, but they did find Captain Speicher's remains. They found bone fragments, skeletal fragments, multiple skeletal fragments, actually. And then those were flown to Dover Air Force base where the Military medical examiner was able to match his jaw bone with Captain Speicher's dental records and that's how they confirmed his positive identification.

The family spokesman tells us just a few minutes ago that they are expecting a classified briefing from the Military either tomorrow or Tuesday and they hope to get one last question answered, the one question that's still out there, how did Captain Speicher die after he successfully ejected from the crash? WHITFIELD: And Chris this really puts an end to a very lengthy investigation, on and off investigation. But how comforted, I guess, is the U.S. Military that there was this cooperation from ordinary Iraqi citizens who fessed up and said, you know what, I know something about this man and this is what we understand took place?

LAWRENCE: Yes, and again, you're talking about a very remote part of Iraq. You are not talking about Ramadi, Fallujah, Baghdad, the areas that we're normally concentrating on. You know, these are shepherd Bedouin tribes that live out in that area. And again, it has just been years and years of back and forth to on this case, him being identified as missing in action, killed in action, very, very tough for the family. There are even reports along the way that he had scribbled his initials on a jail cell in Baghdad. That was later proven to be false but again, over almost 20 years, a lot of stories have come out about this, this finally is some sort of closure.

WHITFIELD: All right. Chris Lawrence, thanks so much from Los Angeles, appreciate that.

So today's announcement ends years of uncertainty for Captain Speicher's friends and family.

(BEGIN VIDEOTAPE)

WHITFIELD: (voice-over): His FA-18 hornet was shot down on the first night of the Gulf war.

DICK CHENEY, DEFENSE SECRETARY: As of 0900 this morning, Washington time, there's been a single American aircraft lost.

TERRY CHANDLER, USS SARATOGA CREWMATE: As clearly today as if it just would have happened. I remember on the recovery, Commander Anderson getting down from his jet and telling me that he thought we had lost Speicher.

WHITFIELD: For more than 18 years, the fate of U.S. Navy Captain Michael Scott Speicher was unknown. There were many false leads. In 1993, the wreckage of Speicher's plane was found, but no body. After the U.S. invaded Iraq in 2003, Speicher's initials "MSS" were found carved into the wall of an Iraqi prison, leading to speculation Speicher might have survived the crash. Nothing panned out, but family members and friends worked to keep the investigation alive.

MIRIAM NOVELLY, SPEICHER FRIEND: We are here in Washington, D.C., trying not to let him be forgotten, trying to make sure that the search never stops until he is found. I think we to owe him that and much more.

WHITFIELD: Finally, last month, marines spoke to an Iraqi in Anbar province who said he saw Speicher buried. Based on that account, Speicher's remains were recovered from the Iraqi desert and flown to Dover Air Force base in Delaware for positive identification.

Captain Speicher is survived by two children, toddlers when he disappeared, but now, in college. (END VIDEOTAPE)

WHITFIELD: And some people never gave up demanding a search for Speicher. U.S. Senator Bill Nelson is among those who kept pushing. I talked with him earlier about this development.

(BEGIN VIDEOTAPE)

SEN. BILL NELSON (D), FLORIDA: After all of the false leads and the ones who were making up stories and giving the family hope that he was alive, even those initials "MSS" that I went to that prison cell and traced that with a pencil and paper.

WHITFIELD: and what was your gut feeling about that at the time?

NELSON: Well, I mean, it was incredible. It looked, actually, like some of his writing. But the fact is that when it never turned up any evidence, we always figured it would be the Bedouin that had participated in the burial. They just needed to find that --

WHITFIELD: So you really did feel that -- so this is an unusual, I guess, revelation that they had located the body and actually gave it a respectful burial. Somewhere deep down inside, do you feel that that might have been the conclusion?

NELSON: Well, at one point, they actually found a body and had a graveside service, that they thought that that would be him, but the DNA did not match. But that was years and years ago. We knew that you had to find the Bedouin tribe that had actually buried him. And since those Bedouins roam throughout the desert, finally it took this long to find them and we've got a positive I.D.

WHITFIELD: For the family members, two children, once toddlers at the time of his crash and now in college, any idea what the family is feeling? Have you had a chance to speak with anyone?

NELSON: I spoke to Buddy Harris at length this morning. And he is - the whole family is just so grateful that the Navy stayed on this. Admiral Roughhead, the CNO, personally called the family last night. The Navy has been very responsible in this, because after all, a mistake was made. We walked away from a downed pilot. It was done by mistakenly declaring him dead and then they didn't go and search for him and that was a mistake and that is very important, that we never repeat that mistake again.

(END VIDEOTAPE)

WHITFIELD: Senator Bill Nelson there from Florida, Jacksonville, joining us today. So we have been asking you to comment on this story on CNN blog as well as my Facebook. And this is some of what you have been saying. John wrote on my Facebook, I think we just identified another brave American whose ultimate sacrifice deserves our gratefulness. And Ernest says, it's a great thing for his family. I'm a vet from the Gulf War. And Hamid says both his family and his legacy are brought closure with this discovery. And Richard, how are we as a nation to care for our long lost Military personnel let the world know what we value and sets a noble example.

And Norma saying this is wonderful news for his family. May he rest in peace. Thank you so much for some of your comments there as we ask about your thoughts and feelings, now 18 years after his vessel was shot down there. Now we know the remains have been identified of Captain Michael Speicher there. Post your comments on our blog, cnn.com/fredricka or on Facebook at Fredricka Whitfield CNN or you can also call us, the number right here, 1-877-742-5760. We may be using your comments on the air.

All right. Detained in Iran, the fate of three American hikers is uncertain at this hour. They were hiking in Iraq's Kurdistan region when they strayed into Iranian territory. Our Arwa Damon breaks down the details of their arrest.

(BEGIN VIDEOTAPE)

ARWA DAMON, CNN CORRESPONDENT: Iranian press TV is reporting that three Americans have been detained for straying across the border from northern Iraq after failing to heed border guards' warnings. Among them, one has been identified as Joshua Fattal by his mother. And the other one, a fourth American who was traveling with the three, has been identified as Shon Meckfessel, is believed to be, according to his grandmother, at the U.S. embassy.

Now, the four started out their journey in Syria, traveling to Turkey before they crossed into northern Iraq on July 28th. On July 30th, they arrived on Sulaymaniyah and then on the morning of the 31st the three including Joshua Fattal traveled to an area near the Iranian border known as Ahmed Awa. Shon Meckfessel stayed behind because he was feeling ill. The three at the border were said to have been warned by local tourist police that they were very close to Iran and that they should watch out. The border in this area isn't a fence, it's a natural border and that they should pay attention because these were very tense times.

The three were last heard from when they placed a phone call back to Shon Meckfessel at 1:30 on Friday saying we are surrounded by the Iranian Military. There have been ongoing efforts to try to secure specific information about what happened after that point and gain access to the three that are believed to be in custody in Iran. The U.S. state department saying that it has asked Swiss diplomats in Iran to try to verify reports that the three are being held there if that is in fact the case to try to gain counselor access to them.

The great concern here is that this could potentially escalate into an international incident given the three way tensions between the U.S., Iran and Iraq.

Arwa Damon, CNN, Baghdad.

(END VIDEOTAPE)

WHITFIELD: All right. Pleasant economic news, but is it the word on the recession that every American is waiting to hear? What the president's top money team is now saying. (COMMERCIAL BREAK)

WHITFIELD: President Obama's top financial advisers are pushing toward a positive economic outlook. Nobody is saying the recession is over but they are focusing on the light at the end of the tunnel. Our Kate Bolduan is at the White House, where the president returned earlier today from his weekend trip to Camp David. Kate?

KATE BOLDUAN, CNN CORRESPONDENT: Hi there, Fredricka. Well, administration officials say that they are confident the economy is no longer on the brink of collapse but we are not out of the woods yet.

(BEGIN VIDEOTAPE)

BOLDUAN (voice-over): President Obama returns from a weekend at Camp David. His administration touting the week's positive economic news as evidence their efforts are succeeding in turning around the economy.

CHRITINA ROMER, CHAIR., W.H. COUNCIL OF ECONOMIC ADVISERS: The most private forecasters think real GDP growth will turn positive before the end of the year.

LAWRENCE SUMMERS, W.H. CHIEF ECONOMIC ADVISER: People are talking about whether the recession is going to turn into a depression, they are talking about when it's going to end. That is the real accomplishment.

BOLDUAN: While republicans agree the economic signs are encouraging, many say it's no thanks to the Obama administration or the stimulus package.

REP. MIKE PENSE (R), INDIANA: But I really believe it is in spite of the prescriptions of Washington, D.C.. I think what we are seeing in the economy now is the inherent resilience of the American economy and the American people.

BOLDUAN: As the White House tries to paint a rosy economic picture, they are also carefully trying to manage expectations. Treasury Secretary Timothy Geithner says Americans face tough choices ahead in order to reduce the federal deficit now at more than $1 trillion. And Larry Summers, the president's top economic adviser, won't rule out a middle class tax increase down the road.

(CROSSTALK)

SUMMERS: There is a lot that could happen over time. But the priority right now, it's never a good idea to absolutely rule things, rule things out, no matter what.

BOLDUAN: But an economic recovery may be further away than the White House hopes. This Nobel prize-winning economist and former Clinton adviser Joseph Stiglitz.

JOSEPH STIGLITZ, COLUMBIA UNIVERSITY: I think it's a little bit premature to be confident about a recovery and I think it is very premature to be confident about a robust economy by early next year.

(END VIDEOTAPE)

WHITFIELD: All right. Kate Bolduan back with us now. So republicans, democrats, obviously at odds as it pertains to the economy and just about everything else these days, right? So is there anything however that we can say they do agree upon?

BOLDUAN: Well, Fredricka, following reports that more than a million Americans by the end of this year could lose their unemployment benefits, administration officials say they are carefully looking at extending those unemployment benefits further, working with Congress to do so. And republicans today seem to signal their support around that idea. So around that idea there seems to be some agreement.

WHITFIELD: OK. That's good to hear. All right. Thanks so much. Kate Bolduan at the White House.

All right. We'll have the second 100 days of the Obama administration been days of change, days of frustration? What do you think? We want to hear from you. Cast your vote at cnn.com/reportcard. Then get the results on CNN's "National Report Card" Thursday night, at 8 p.m., right here on CNN.

All right. Death at a Canadian Music Festival. We'll tell you what caused this outdoor stage to collapse.

(COMMERCIAL BREAK)

WHITFIELD: All right. Two people are still in critical condition after a stage collapsed at a country music festival in western Canada. One person was killed and at least 15 more hurt yesterday after an intense thunderstorm blew down an outdoor stage at the Big Valley Jamboree after Kevin Costner was just about to take to the stage when his band, Modern West, was about to perform. He was unhurt. But two of the band's crew members did suffer some minor injuries. A woman in the audience says she thought she was going to just die.

(BEGIN VIDEO CLIP)

VOICE OF MARIA ORYDZUK, SURVIVED DECK COLLAPSE: We were on the (inaudible) which means we get access to the show on stage. The next thing I know, we are running off and for 20 feet off on the stage and the wind comes out of nowhere and literally the whole deck crashes, like a midway ride. Next thing I know there's concrete and something to on top of my back. I can't see a thing, all I'm doing is yelling for my sister, children on the deck with us. It was awful. I thought my life was literally ending because it was completely dark and black. And I can honestly say if I wasn't as thin as I was I would never have gotten out, because it was a tiny hole that I crawled through and it probably, I don't know, a good 50 feet down I had to jump. It was a serious part of my life.

(END VIDEO CLIP) WHITFIELD: Very scary moment there is, about 15,000 people were actually attending the festival in Cambrose, Alberta. That's about 60 miles southeast of Edmonton.

All right. Jacqui Jeras is in the weather center to give us some ideas when you go to big public settings like this outdoors what do you need to do to stay safe, especially, you know, if you were somewhat aware of some bad weather that could be percolating?

JACQUI JERAS, CNN METEOROLOGIST: Yes, it's really one of the most dangerous places to be when you're outdoors. There's no shelter around, and you're talking, you know, maybe hundreds of people, so you've got large crowds that you have to move. Most venues do have some type of emergency plan in place. But a of couple things you can do, of course, make yourself aware of the weather.

You know, before you go check the forecast, get on the computer, cnn.com wherever you like to go and find out if that threat is there. And then as you are walk nothing into that place, like maybe say an arena or a stadium, you know, as you go up the stairwell, you notice a little sign where it says tornado shelter, places like the stairwell as well, if they are covered or in the bathrooms are some of the safest places to be. But if you are out in the open, you need to try and find the closest shelter and you're probably even better off in your car than you are out in the open field, when severe storms are trying to move through your area. So something to think about.

WHITFIELD: Yes.

JERAS: Everybody has got a plan at home but you know, when you're out -

WHITFIELD: That's true. And you forget you have that false sense of security that you are going to a place, there are going to be a lot of people and you don't even think about something going wrong, especially weather-wise.

JERAS: Absolutely. And you know, a lot of different companies, do have those automatic alerts that you can get them on your PC device and things like that. If you know what county you are in, certainly you will get those warnings.

WHITFIELD: Very good.

JERAS: Yes. Well we got some stormy weather to talk about here across some parts of the northeast. As you can see, and for some reason -- there we go, there we go. All across the southeast and to the northeastern corridor, we have been dealing with heavy showers and thundershowers, some isolated severe storms but it's not going to be widespread, kind of tough going if you are trying to have some beach plans here into the Carolinas, the biggest issue that we're dealing with in the northeastern corridor is that even though the worst of the storms have passed through the area, yes, the damage has been done.

So we got a lot of delays at the airport. A ground stop in Atlanta, which means they can't take off to get into ATL. We got delays of over two hours at JFK and LaGuardia, over three hours, and Newark and similar issues there, into Philadelphia and Washington, D.C.. So it is going to be some time before we start to catch up a little bit. Temperature-wise, you know, the weekend is trying to balance itself out a just little bit and make things a little more comfortable but the heat still stays strong across the south and into the southwest. Phoenix, excessive heat warnings once again, and we talked a little bit about this earlier, Fredricka, how everyone is complaining about your summers, it's too hot or it's too cold.

WHITFIELD: Nobody is ever happy.

JERAS: I know but chances are, you are actually right. We had so many records and just a quick peek, the hottest July temperature ever, places like Phoenix, Austin, San Antonio, and Portland, and then the coolest July average temperatures ever, Madison, Wisconsin, all the way down to Huntington, West Virginia. Yes, 65, your average temperature?

WHITFIELD: No.

JERAS: It's not average high, by the way, it is the mean between the high and the low. So you know -

WHITFIELD: Too chilly. I know it's probably is very refreshing, but you know -- summer for me, I want it warm hot.

JERAS: Stay in the southwest, my friend.

WHITFIELD: Okay. Sounds good. Thanks so much, Jacqui, appreciate that.

JERAS: All right. This sad story and now a recovery, a discovery that maybe it's bringing some relief to the family in a strange way. He was the first American to die in Operation: Desert Storm. That was 18 years ago. But until today, his family didn't even know what had happened to him.

(COMMERCIAL BREAK)

WHITFIELD: The remains of the first American lost in Operation: Desert Storm have finally been found. The Pentagon today confirm remains recently found in Iraq are those of Michael Scott Speicher, the Navy pilot shot down on the first night of the war in 1991. Our Pentagon correspondent, Barbara Starr, has been working on this story and earlier, she talked with CNN's T.J. Holmes.

(BEGIN VIDEO CLIP)

BARBARA STARR, CNN PENTAGON CORRESPONDENT: At this point, what the Pentagon is telling us is they were acting on information provided by an Iraqi citizen in early July. And that led the U.S. marines who are stationed in Alanbar (ph) province out in western Iraq to go to a location in the desert which was believed to be a crash site of Captain Speicher's jet. The Iraqi citizen said that he knew of two Iraqi citizens who recalled an American jet crashing in the desert and the remains of the pilot being buried there by the Bedouins. So when you asked, T.J., how much they followed up, every time they got a hint, every time they got a report. And you know, once the Iraq war started in 2003 there had been a lot of hope actually with the Military vet that would open upper rack and they would find him. Of course, over the years, the Iraq war, they did not.

(END VIDEO CLIP)

WHITFIELD: That was Barbara Starr earlier. Well Captain Speicher's family can now find some closure but for hundreds of families, the wait continues. Joanne Shirley heads an organization that fights for the rights of families of missing troops and POWs. Her brother was shot down over Vietnam. That was 37 years ago. His body has never been found. She now leads this organization, National League of P.O.W./M.I.A. families. Good to see you, Ms. Shirley.

JOANNE SHIRLEY, NATIONAL LEAGUE OF POW/MIA FAMILIES: Thank you.

WHITFIELD: All right. So a couple of things here. You know, we spoke with Senator Ben Nelson earlier who said he and others helped keep the investigation alive so that 18 years later, the remains would be found and identified. The investigation kept going. For you it has been 37 years, but give me an idea about how you were able to relate to this family that closure still hasn't come for you?

SHIRLEY: There's always hope. I think what - the capabilities we have now and what our government has achieved, the National League of Families has really put forth a technology, the personnel, the capabilities to get into these site to do the investigations, to interview witnesses like the guy who gave us the information about this gravesite.

WHITFIELD: Similar to this investigation that Senator Nelson helped keep going, you're helping to keep going of this investigation to find your brother to find the remains. It is your understanding that he has been missing in action all these years; he was not a P.O.W., correct?

SHIRLEY: No.

WHITFIELD: The differences of the organization that you are supporting, so how do you keep that investigation going? Is it a matter of keeping the pressure on the U.S. military or is it some other entity?

SHIRLEY: It is keeping the pressure on the U.S. government to keep the pressure on the governments that we deal with. In our case, it is Vietnam, Laos, and Cambodia, to step up to the plate, give us the information, give us the archives, give us what we need to be able to go back in find the witnesses, like we did in this case and be able to lead us back to crash sites or gravesites, not only for Vietnam, but for we are getting significant accountability for World War II and Korea now as well. So to me, there is hope for anybody who has someone who is missing and unaccounted for.

WHITFIELD: This is your brother. When you look at this image and when you hear about the news of the family, Speicher's family getting this news that remains have been positively identified, you don't know the Speicher family but you know the agony this family has been through because you have been experiencing it for your brother.

Give me an idea of what you suppose this family has been going through for 18 years based on what you have been going through for 37 years?

SHIRLEY: It is very difficult, I think for my family we made a decision early on to be involved. I want Bobby to be proud of what we've done. I want him to know we did everything we could, I'm a housewife from Georgia but I worked very hard. I have taken four trips to Southeast Asia, lobbying on behalf of the families and our own government, bringing the family perspective to the governments of Laos, Vietnam and Cambodia. I think doing something has made me feel like we are not just sitting around waiting.

The National League of Families has laid that foundation for us to have the capability to pressure our own government, particularly technology like DNA capabilities, the dental records, and the forensic anthropologists that now work our site. It is amazing the changes we've seen since my family got involved 37 years ago. And the league just celebrated its 40th year; we had our 40th meeting last week in Washington, D.C. The biggest challenge we are facing right now is to be able to keep the league in business, and to keep this issue moving forward.

WHITFIELD: Well this is an incredible emotional journey too for you personally. What do you suppose -- what did you feel this morning upon learning news that the Speicher family would learn that remains had been found? What do you suppose that feels like? You haven't had a chance to enjoy that kind of news thus far but what do you suppose they experienced?

SHIRLEY: It's huge relief. You know that they were not a P.O.W., they were not tortured, and they were not captured and mistreated. I think all of that really helps you to just breathe a sigh of relief. Just to know you're going to get him back, bring him back to this country, we have an obligation to those who serve us and I'm probably the most patriotic person in the world. I think, you know we do have an obligation to those who served this country to never leave them on foreign soil to always do whatever we can to bring them back.

WHITFIELD: You feel pretty hopeful that eventually at some point, some answers will rise to the top, tat there will be remains found of your brother?

SHIRLEY: We just got information within the last year, they went back to my brother's crash site last summer, found what's called a blood chip there with a number on it that was in the flight vest he had on the day he became missing and that number correlates to the one that Bobby had on his person when that plane went down so, we at least know that that is --

WHITFIELD: Close.

SHIRLEY: That is his crash site and they are hopefully within a year will go back and do a re-excavation on that site. They are very optimistic they can find remains.

WHITFIELD: Remarkable.

SHIRLEY: If we can just keep this issue alive and moving forward, the public really needs to step up and get involved and understand the families can't do it alone.

WHITFIELD: Well keep us posted on how that goes on for you and your family.

SHIRLEY: Thank you.

WHITFIELD: Joanne Shirley, thanks so much, the National League of P.O.W/M.I.A. Families, I appreciate your time.

SHIRLEY: Thank you, yes, ma'am.

WHITFIELD: Well, nine U.S. and NATO troops have died in Afghanistan this weekend with. Now, there are concerns about security for upcoming elections. CNN's Ivan Watson has details from Kabul.

IVAN WATSON, CNN CORRESPONDENT: A bloody weekend in Afghanistan for Americans and NATO forces. A U.S. military spokeswoman says that six troops were killed around the country on Saturday. Among them, three American troops killed in the southern province of Kandahar by two roadside bombs that hit their patrol.

Also, a French soldier killed and two unidentified NATO troops as well. Meanwhile, on Sunday, another three American soldiers killed in eastern Afghanistan by a roadside bomb followed up by a Taliban insurgent ambush. This comes after the deadliest month yet for American and NATO forces in Afghanistan since the start of this war some eight years ago, July. Some 75 troops killed across this country, the chief enemy, the chief threat to these forces on the ground, those deadly roadside bombs, improvised explosive devices.

Now, a campaign is under way right now for presidential elections scheduled to take place on August 20th here in Afghanistan. The incumbent President Hamid Karzai is believed to be the front-runner. He was out campaigning over the weekend in northern Baghram Province. He was speaking to supporters. This is what he had to say.

(BEGIN VIDEO CLIP)

PRES. HAMID KARZAI, AFGHANISTAN (via Translator): We passed the journey of success, we passed the journey of happiness, but all our joys were mixed with sadness, we could not bring complete peace to our country, terrorism is still bothering us, killing of our people, destroying our country. I promise that when I become president by winning your votes, my first priority will be to bring peace to our country.

(END VIDEO CLIP)

WATSON: Karzai is competing with some 40 opposition candidates, a crowded field, and many of them are heaping criticism on him and his government. He has been in power since 2001. Here is Dr. Abdullah Abdullah, a former foreign minister, accusing Hamid Karzai's government of failing to provide security around the country.

(END VIDEO CLIP)

DR. ABDULLAH ABDULLAH, AFGHAN PRESIDENTIAL CANDIDATE: Unfortunately, the government of Afghanistan has failed to provide security for its citizens and also to utilize the opportunity, which was the business of the foreign troops, the international troops, as well as billions of to the construction assistants in Afghanistan. To stabilize Afghanistan to the extent that eight years down the road, we would have been able to say, less troops rather than more.

(END VIDEO CLIP)

WATSON: There are big questions now whether or not even with the additional troops, some 101,000 American and NATO forces in Afghanistan, whether or not they will be able to keep the country safe, particularly in the Taliban-ridden south and east of the country, to allow voting to take place on August 20th.

Ivan Watson, CNN, Kabul.

WHITFIELD: In this country, President Obama's week ahead, he is planning to keep health care in the headlines. We have got a peek at his schedule.

(COMMERCIAL BREAK)

WHITFIELD: Health care reform, what is it in for you? We are talking about in the newsroom this weekend. Reform bills stalled in both the House and the Senate.

And CNN's senior political analyst David Gergen is pointing a finger at the White House.

DAVID GERGEN, CNN SENIOR POLITICAL ANALYST: The White House has to lead a very concerted effort to help persuade people why it is moving in the right direction. Its handicap is that not only is this complex, but it does not have a coherent plan to take to the country and sell it.

WHITFIELD: On CNN's "State of the Union" today, Republican Senator John McCain took a shot at blue dog Democrats. When it comes to controlling costs, he says the blue dogs always bark and they never bite.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN, (R) ARIZONA: The passage of the stimulus package and the huge deficit associated with that I think harmed their ability to move forward with health care because that's another $1 trillion in the CBO so that gave them a certain handicap. But I think the other thing is, other aspect of it is that the president has laid out some ideas but I think the president has got to be more specific in the -- when we come down to exactly what these proposal are and I don't think he has done that.

(END VIDEO CLIP)

WHITFIELD: All right. So, what can we expect from the Obama administration on health care this week? CNN's senior political analyst Bill Schneider is in Washington with that plus a look at exactly how this week just might play out in part. So let's talk first, Bill. The White House as well as Capitol Hill have to identify certain people they have got to persuade on health care. How do they know who they need to sell this plan to?

BILL SCHNEIDER, CNN SENIOR POLITICAL ANALYST: There are a lot of Democrats in the House of Representatives and some of the Senate who are new, who come from districts that used to -- or states that used to elect Republicans and those are the really targets of all the lobbying effort. You might think August is a time when everyone takes off, especially from politics, but no. This August is going to be the focus of a ferocious lobbying campaign targeted at precisely those swing Democrats who have been a little reluctant to climb on board the president's health care plan.

The Democratic lobbying groups that -- the liberal lobbying groups are trying to persuade them, they have to vote for this or else they are going to be faced with a threat and possible punishment. And of course, the Republicans are saying if you vote for this, we are going to come after you.

WHITFIELD: Does this mean members of Congress as well as the White House have now identified that it is health care that is the big issue that voters want to hear about replacing the economy?

SCHNEIDER: No, not actually to voters it is -- the health care is the top issue, of course, to the Obama White House right now, but the president is going to be out there in Indiana this week. On Wednesday, he will be talking about the economy this week. The economy still ranks as the number one issue to voters, the job loss, the unemployment rate is still climbing, even though there are signs that the recovery may be almost at hand.

There are some hopeful signs of the economy; it takes some time for those unemployment numbers to start to go down because employers have to feel secure that the recovery is happening before they start hiring people. So until that happens, the number one issue for the voters is the economy. You know what the number two issue is? Not health care it is spending and the deficit.

WHITFIELD: Oh, interesting. We talk about August being a pivotal month. So, if we are able to take a stab at who might have the advantage in being able to really get the ear of Americans, would it be Congress or would it be the president?

SCHNEIDER: Well the president is still a very popular man, his popularity dropping a bit in recent months because people are very worried about the economy and wondering why are the jobless numbers still climbing? They don't blame him for the bad economy they still blame the previous administration but they wish that they could see some evidence that his programs and plans are working.

The White House says they are working. Things would be a lot worse without the stimulus package. Republicans are using the stimulus plan to say the Obama plans are not working, health care won't be any better. So the president retains personal popularity even though his standing has dropped a little bit in recent weeks. He retains his personal popularity and he is going to be out there campaigning for the next entire month.

WHITFIELD: Yes. He is campaigning as almost as if he is back on the campaign trail before the presidency but now it is really trying to push those policies that he finds very important.

SCHNEIDER: Right, exactly, he will be campaigning, he will be raising money. There are some elections this year, Virginia, New Jersey, electing governors. Later this week, he is going to be in Virginia at a fund-raiser for the Democratic candidate for governor of Virginia. That is a very hot race. The incumbent can't run again, he will be trying to raise money for the Democrats for November.

WHITFIELD: Interesting stuff. All right. Bill Schneider thanks so much. Appreciate that. President having a very busy schedule coming up, Bill just underscored, yes he will be in Indiana, in Elkhart, Indiana, talking the economy as well as a little bit of health care and also be, on Monday, marking the launch of the post-9/11 GI bill, which expands benefits for those that served on or after September 11th, particularly if they want to go on to school.

We want to hear from you can the national report card. How do you suppose the president is doing in this second 100 days? You can already start to log in on CNN.com and voice your concerns. Give a grade and we will be issuing that national report card on Thursday, 8 p.m. Eastern Time right here on CNN.

All right. The debate over health care reform is playing out in television ads. Senior political correspondent Candy Crowley is tracking the messages.

(BEGIN VIDEO CLIP)

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT (voice over): Have microphone, will travel.

BARACK OBAMA, PRESIDENT OF THE U.S: If you like your doctor, you keep your doctor. If you like your health care plan, you keep your health care plan.

CROWLEY: Nothing like the bully pulpit to push an issue, but there are other ways you may have noticed.

(UNIDENTIFED FEMALE): You could end up with government bureaucrats taking away your choices, getting in between you and your doctor.

(UNIDENTIFIED MALE): Now the Republicans say Congress should slow down? That's because when something goes slow enough, it's easy to kill it.

CROWLEY: So far, just about $50 million has been spent on TV ads related to health care reform, aired by 50 different groups, insurance, pharmaceutical associations, unions, nurses, the soft drink industry, Republicans and Democrats, all with two things in common, a vested interest and deep pockets. About half the buys are aired nationally.

EVAN TRACEY, CAMPAIGN MEDIA ANALYSIS GROUP: It is really trying to reach the most engaged sort of party activists, legislative, lawmakers, you know, reporters, bloggers, you know the people that sort of plugged in all the time. Most Americans right now are at the beach.

(UNIDENTIFIED MALE): Barack Obama's message.

CROWLEY: The ads fall into four basic categories, for and against an Obama-style reform package, pro-health care reform in general.

(UNIDENTIFIED MALE): We may finally get health care reform.

(UNIDENTIFED FEMALE): It's about time.

CROWLEY: And ads from stakeholders, autism speaks.

(UNIDENTIFED FEMALE): Call speaker Pelosi and leader Reid and tell them health reform that fails to stop autism insurance discrimination is unacceptable.

CROWLEY: The soft drink industry.

(UNIDENTIFIED MALE): This is no time for Congress to be adding taxes on the simple measures we all enjoy, like juice drink and soda.

CROWLEY: In general, the ads are soft edged but as summer moves into fall and the kid goes back to school, Congress begins debate on a health care bill, Katy Bar the door or turn off the TV.

TRACEY: I think you will see some really distinct lines, they are going to get much more emotional in their lines of attack and it is going to become much more politicized.

CROWLEY: It has already begun. Here is what Republican leader Eric Captor will see when he hits the remote at home.

(UNIDENTIFED FEMALE): Now I find out that Congressman Eric Cantor voted against health care reform that would stop insurance companies from denying coverage from pre-existing conditions like cancer. He want knows fight cancer and the insurance companies?

CROWLEY: This union ad is not about getting Congressman Canter to vote for the house bill this is a warning shot, count on health care reform as an issue for 2010, hard ball to come.

Candy Crowley, CNN, Washington. (END VIDEO CLIP)

WHITFIELD: And a major upgrade for the U.S. military, not on the battlefield but in the classroom. We will tell you about the new GI bill.

(COMMERCIAL BREAK)

WHITFIELD: All right. It is not your grandfather's GI bill. The changes to the program give both active duty and reserve service members the same benefits.

CNN's Heidi Collins reports.

(BEGIN VIDEO CLIP)

HEIDI COLLINS, CNN ANCHOR (voice over): An historic change in the GI Bill now gives new incentives for troops serving on the frontlines in Iraq and Afghanistan. After they are done serving our country, their opportunities for education will be completely different. Millions of veterans have used the GI Bill to help pay for college since it was first introduced back in World War II. But a lot has changed since then, so the GI Bill is adapting for today's military.

KEITH WILSON, V.A. EDUCATION DIRECTOR: You could have two individuals, for example, patrolling the streets of Baghdad, one individual being on active duty and another individual being a guard reserve member that was called up. When they return, they would have received very different benefits. Now, under this program, because it's based on active service, those individuals can end up receiving the same benefits.

COLLINS: The new bill will allow veterans who serve at least ten years to pass unused benefits onto their families.

MAJ. RON LEE, U.S. ARMY: My daughter now who is 16 will get her first two years of college paid by this GI program. My daughter who is 10, Veronica, she will receive the second two years.

SGT. NATHAN O'DONNELL, U.S. ARMY: When I have kids and comes their time to go to school, I will be able to let them use the GI Bill and have it pay for education using the benefits from when I served.

COLLINS: Then there's Joe Gittings. He served in the army in World War II and used the benefits to learn a life long trade, which he is still using now at age 82.

JOE GITTINGS, WORLD WAR II VETERAN: A lot of veterans in all field of endeavor benefited from the GI Bill.

COLLINS: Back then, veterans got only $500 a year at the most to further their education, via college or apprenticeship. Today, the bill has a cap of about $16,000 a year. The new bill can only be used toward a college or university education but it kicks the amount of money way up, matching the cost of some of the most expensive state schools in the country. Overall, the director of the program says the major changes will make it easier to get new recruits and keep the more experienced troops longer.

Heidi Collins, CNN, Atlanta.

(END VIDEO CLIP)

WHITFIELD: And despite some criticism, Cash for Clunkers turns out a big payoff for Ford Motors.

(COMMERCIAL BREAK)

WHITFIELD: All right. This information just in right now. Our Poppy Harlow is confirming a "Wall Street Journal" report that indicates that Ford Motors is actually celebrating right now its first increase in sales in the month of July, the first gain in about two years. And part of the credit is being given to the Cash for Clunkers program.

In the past few weeks, people have taken advantage of this government incentive, which means you bring in your clunker to the car dealer and you get about $4500 in tax credit toward a new, more fuel- efficient vehicle and Ford Motors is saying that, in part, because of that program, it is now finally, after two years in a slump, enjoying an increase in sales in the month of July. We will try to get much more on this on CNN throughout the evening. If we get anymore information.

Meantime, I would say it is time for chat room with our Jacqui Jeras here, we love to talk more about the incentive here on Ford but we have other things to talk about as well. Some fun stuff.

JACQUI JERAS, CNN METEOROLOGIST: Yes. Fun today.

WHITFIELD: Fun and funny.

JERAS: Impacting your pocketbook.

WHITFIELD: Expensive. Right.

JERAS: Always (INAUDIBLE).

WHITFIELD: Going to Disney? I can hear you fine, we will work on that, we will talk first about Disney. It is always very expensive to try to go as an individual or even take the family but from $75 for an adult, admission tickets now, a little more.

JERAS: Yeah and they are raising kids prices by $5 each. Under $10 extra for a family but Disney took a bigger hit earlier this year, they have been laying off employees and there has been park attendance is down due to the economy, so they are having to raise their prices to help make your experience --

WHITFIELD: Which really does kind of make it confusing for a family, too. When the message is if it's hard on everybody, now is not the time to increase a ticket to, you know, take the family out and about but oh well.

JERAS: Oh, well. If you're going to go. I don't think 4 bucks is going to make a difference?

Probably not.

WHITFIELD: All right. We have time for another?

Make it quick.

JERAS: Have you heard what a myrtle is?

WHITFIELD: Tell me.

JERAS: It is a man girdle is what it is. It is -- shapeware --

WHITFIELD: Tummy tuck.

Why not?

JERAS: And now they are making it for men. And we are hearing some great things. Takes two inches off your waist.

WHITFIELD: Very good.

Fareed Zakaria "GPS" is next.