Return to Transcripts main page

CNN Newsroom

More Education Money for Vets; 'No Tax Hike' Pledge in Doubt; Three Americans Detained in Iran; Michael Jackson's Mother Wants More Control over Estate; More Protests in Iran

Aired August 03, 2009 - 11:00   ET

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

T.J. HOLMES, CNN ANCHOR: Hello to you all. It's Monday morning, August the 3rd. Here are the top stories right now in the CNN NEWSROOM.

President Obama this hour promotes a new GI bill with enhanced benefits for Iraq and Afghanistan veterans.

Also, captive Americans. Diplomats work to free three hikers after they're arrested in Iran.

Also, Katherine Jackson in court this hour. She's fighting for control of her son's estate. That's an estate that could be worth billions.

Hello to you all. I'm T.J. Holmes, sitting in today for my good friend Tony Harris.

And you are in the CNN NEWSROOM.

And we're talking about expanding education benefits for veterans today. President Obama's scheduled to speak shortly on the new GI bill.

You're seeing a live picture of the ceremony happening right now at George Mason University. This is in Fairfax, Virginia.

The president expected to make some remarks within minutes. Nobody up on that podium just yet, but we are standing by, really expecting the president to speak at any moment about this expanded GI bill that expands these education benefits.

When the president steps up, we'll certainly go back to his remarks. But let's get a preview of what the president is going to be talking about today with our White House correspondent, Dan Lothian. He joins us now.

Good morning to you, Dan.

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: Good morning, T.J.

Well, as you know, this GI bill, the original one, was very important for these vets returning from serving their country overseas. More than half of the 15 million vets from World War II took part in some kind of education program. So this is the new bill, post-9/11 bill, if you will. It was passed last year, but the VA had some 18 months to really get this program going.

So, here's what this program will contain (ph). It's a $78 billion program. It will give Iraq and Afghanistan veterans the same opportunities for education as World War II veterans, and it will also give eligible vets a full ride in a public education system.

It will also provide them the tools -- or rather the money -- to be able to afford the books and the expenses, and also cover housing for four years. And, by the way, the money started going out on August 1st. So, again, $78 billion to assist these veterans who fought in Iraq and Afghanistan to help them get a good education here at home -- T.J.

HOLMES: And Dan, this can help. Like you said, this went into effect on August 1st, so this could actually help them out. Here we go. A lot of students getting ready for the fall season, so a lot of people are going to be taking advantage of this already.

LOTHIAN: They will be taking advantage of this. And as you know, the veterans who return from serving overseas are already facing a mountain of issues, some emotional issues, and certainly figuring out what to do in the next phase of their lives. And many of them want to get a good education, but how to afford that is always a big hurdle. So, this is way to help them to get into college, to pay for that college education, to and give them a stipend so they can have housing, books, all those things that they need to get a good education.

HOLMES: All right. Our Dan Lothian for us at the White House.

And we appreciate you.

And a reminder to our viewers, you're seeing that at the bottom of your screen, a live picture, George Mason, where we're expecting the president to step out at any minute to make comments about this new GI bill. When he steps up to that podium, we will take those comments live.

Also this morning, talking about your money this morning. Does this sound familiar? If you make less than $250,000, you will not see your taxes increase a dime. It should sound familiar, because you heard President Obama, then-candidate Obama, say that time and time and time again out on the campaign trail. But the problem now is, we didn't hear his chief advisers say it yesterday.

CNN's Christine Romans at the business desk in New York.

Christine, this really got a lot of people's attention here. We don't want to scare everybody here and say that there's some tax hike that's on the way, but to have some of his top advisers, the president, not come out and say it's off the table, that turns some heads.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: And you're right. And Ed Henry, our White House correspondent, was saying, look, you don't see two top money men on the same weekend refusing to sort of rule out a middle class tax hike and that's not some kind of trial balloon. He said all of these words very carefully chosen, and so that's why we're listening very carefully to what they said.

So, look, when asked about a tax increase for health care reform, and tax increases in general for the middle class, I want you to listen for yourself very carefully to what Timothy Geithner, the treasury secretary, and also top adviser Larry Summers said on the weekend chat shows.

(BEGIN VIDEO CLIP)

LAWRENCE SUMMERS, DIRECTOR, NATIONAL ECONOMIC COUNCIL: There's a lot that could happen over time. But the priority right now -- and so never a good idea to absolutely rule things -- rule things out no matter what.

TIMOTHY GEITHNER, TREASURY SECRETARY: We're going to have to look at -- we're going to have to do what's necessary. Remember, the critical thing is people understand that when we have recovery established, led by the private sector, then we have to bring these deficits down very dramatically. What the country needs to do is understand, we're going to have to do what it takes, we're going to do what's necessary.

(END VIDEO CLIP)

ROMANS: "We're going to have to do what it takes, we're going to have to do what's necessary."

There are economists who say what it takes and what is necessary is that once the economy starts to grown again, just growing on its own won't be enough to dig us out of all of these deficits and all of this red ink. It will take some combination of higher taxes and lower spending to get our financial house in order.

I mean, when you look at how much money is being spent to dig us out of this hole, we were spending money even before the financial crisis, spending money that we didn't have, T.J. And now we're spending so much money that we don't have, that our deficit at 13 percent of our economy. The last time we saw that was I think right after World War II.

So, when you look at the size of our red ink, compared with the size of our economy, that's what's worrying people. And that's why you have some economists who are saying it's just impossible not to raise taxes in some way, shape, or form down the road.

And you're right, the president on the campaign trail again and again said that the middle class would not see tax increases. And again and again on the campaign trail, there were economists of all stripes who kind of scratched their heads and said, you know, down the road, how are you going to raise the money?

The hope here is that this restructuring, the money we're spending now to get the economy restructured, will help us be stronger in the future and make money, and be able to naturally try to dig ourselves out of this. But a lot of economists, a lot of people who watch this, say you can't just tax the rich to get out of this, or raise taxes on the rich, or return taxes on the rich to the way they were under Clinton and later, but that there's going to have be some other blend of spending cuts and tax increases to get us out of here. And two top money men very pointedly not ruling that out.

HOLMES: Yes. Don't know yet. A lot of people already calling it a "Read my lips" part two. But we are not there yet, at least.

ROMANS: No.

HOLMES: Christine Romans, we appreciate you this morning. Thanks so much.

Let's turn to the auto industry. When was the last time you heard us say this, that an auto company, a major U.S. auto company, actually saw sales increase?

Let's go ahead.

Susan Lisovicz, this is big news, a big deal. And explain to us why off the top -- we haven't heard this in a long time.

SUSAN LISOVICZ, CNN BUSINESS CORRESPONDENT: That's right. So, let's answer that question.

When was the last time we heard something from the big three where sales actually increased? About two years, basically since the financial crisis began.

So, Ford is telling us, giving us a preview, telling CNN Radio that, yes, July saw its sales increase. Cash for Clunkers played a part, but Ford also said that it started to see conditions improve in June. Sales continued to firm up in July. And remember, Cash for Clunkers only kicked in the final week of the month.

What dealers are telling Ford is the fact that Ford didn't receive any help from the government helped. Ford would like to believe it just simply makes better products.

But there's this old expression, T.J., "A rising tide lifts all boats." And we are hearing that we are seeing customers buying all sorts of cars now. And that, of course -- why is that a big deal? Because cars are a big-ticket item, and consumer spending is key in terms of economic recovery.

So, let me give you a little bit more, because earlier this morning, about an hour ago, we got two other fresh signs of improvement for the economy. Construction spending increased. Wall Street was expecting a decline there. And manufacturing, a sector that's absolutely been battered by the recession, improved.

And the folks who are behind that survey said the data suggest if these trends continue, we will see growth in the third quarter. So, we're seeing growth in the stock market right now, T.J. We're seeing a nice rally for the Dow, the Nasdaq and the S&P. Coming off of the best July in 20 years.

Not too bad at all. We'll have more details later on in the program, but a nice start to the first trading day in August -- T.J.

HOLMES: Well, a good start. We can't wait to talk to you again here shortly.

Susan Lisovicz for us.

Thank you so much. Good to see you.

LISOVICZ: You're welcome.

HOLMES: And once again, a reminder to our viewers. What you're seeing at the bottom of your screen, at least there, we're waiting on the president to come out to make some comments about the GI bill. When that happens, we'll bring that to you live.

But a developing story we're keeping an eye on as well. Swiss diplomats are in Iran, and they are working on behalf of the U.S., trying to find out more about three Americans detained for illegally entering the country from Iraq.

CNN's Arwa Damon live for us in Baghdad. She's been following this story for us.

Arwa, any movement that we know of yet? And, of course, the U.S. is not the government that's directly talking to Iran.

ARWA DAMON, CNN INTERNATIONAL CORRESPONDENT: That's right, T.J.

As you were just mentioning there, the U.S. has asked Swiss diplomats to try to find out exactly what happened to these three Americans and where they're being detained. But according to the State Department, these Swiss diplomats are really not able to get that far.

They met with officials from Iran's Ministry of Foreign Affairs, who basically told them that they hadn't heard anything and would look into the story. So, that's not very good news, especially as everyone is trying to piece together exactly what happened.

The U.S. Embassy here in Baghdad being tight-lipped, as is expected. What we have been able to piece together from Kurdish officials is that they still do maintain that they believe that these three are being held up near the border by the Iranian border security guards. But they literally have literally have not been heard from since that last phone call that they placed on Friday to their fourth friend who stayed behind saying, "We're surrounded by the Iranian military."

So, the mystery around all of this really just deepens, and it does raise the question as to why Tehran would not be forthcoming with the information, not put out any sort of official statement just yet, if in fact they were in their custody -- T.J.

HOLMES: All right. Arwa Damon for us on the story in Baghdad.

Arwa, thank you so much.

Again, a reminder to our viewers. We are waiting for somebody to step up on that stage. A bunch of empty chairs and an empty podium right now, but we're waiting on the president to come out and make some comments live there to a crowd that's gathered at George Mason University in Fairfax, Virginia.

He's going to be talking about the new GI bill, laying out some of its key provisions that expand education benefits to this country's war veterans. When the president steps out to make those comments, we'll certainly bring those to you live.

And of course we've gotten some -- as we heard Susan Lisovicz say, some good economic news, or indicators, at least, coming out today. But right now, after just a couple of hours, almost a couple of hours in trading, the Dow up about 85 points.

We're keeping an eye on all things business related. Stay with us here on CNN.

(COMMERCIAL BREAK)

(WEATHER REPORT)

(COMMERCIAL BREAK)

HOLMES: As promised, joining the president now live in Fairfax, Virginia. About to make some comments about the new GI bill.

Let's listen in.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: It is wonderful to see all of you and wonderful to have one of the best partners that anybody could have in elected office, our vice president, Joe Biden.

(APPLAUSE)

I want to thank Staff Sergeant Miller for the gracious introduction. I want to thank President Merten for his hospitality.

There are a couple of people here who deserve all of the credit because they got a very tough bill done. And part of the reason they were able to get it done was just because of their extraordinary personal credibility.

These are -- one is new to the Senate and one had been there a while. And yet, together, they formed an incredibly formidable team. They're both class acts.

Please give a big round of applause to Virginia's own, John Warner and Jim Webb.

(APPLAUSE) I know that we've got a number of members of Congress who are here, and I want to thank them all for their out standing work. I want to point out that Senator Mark Warner could not be here, but we appreciate him.

We've got the secretary of Veterans Affairs, a hero in his own right, General Eric Shinseki. And I want everybody to please acknowledge him.

(APPLAUSE)

And the original bill sponsors who could not be here today, we've got Senator Chuck Hagel, Senator Frank Lautenberg, Representative Harry Mitchell, Representative Bobby Scott, Representative Ginny Brown-Waite, and Representative Peter King. All of them worked hard, along with the delegation that is present. So, we are very grateful to all of them.

I want to join all of today's speakers in thanking those of you who worked so hard to make this occasion possible. But above all, I want to pay tribute to the veterans who are now advancing their dreams by pursuing an education.

Obviously, I'm honored to be here and to renew our commitment to ensure that the men and women who wear the uniform of the United States of America get the opportunities that they have earned. I was a proud co-sponsor of the post-9/11 GI bill as senator, I'm committed to working with Secretary Shinseki to see that it is successfully implemented as president.

And we do this not just to meet our moral obligations to those who sacrificed greatly on our behalf and on behalf of the country. We do it because these men and women must now be prepared to lead our nation in the peaceful pursuit of economic leadership in the 21st century.

This generation of servicemen and women has already earned a place of honor in American history. Each of them signed up to serve, many after they knew that they would be sent into harm's way.

Over the last eight years, they have endured tour after tour of duty in dangerous and distant places. They've experienced grueling combat from the streets of Fallujah to the harsh terrain of Helmand Province. They've adapted to complex insurgencies, protected local populations, and trained foreign security forces.

So, by any measure, they are the authors of one of the most extraordinary chapters of military service in the history of our nation. And I don't make that statement lightly, for we know that anyone who puts on the uniform joins an unbroken line of selfless patriots that stretches back to Lexington and Concord. The freedom and prosperity that we enjoy would not exist without the service of generations of Americans who were willing to bear the heaviest and most dangerous burden.

But we also know this -- the contributions that our servicemen and women can make to this nation do not end when they take off that uniform. We owe a debt to all who serve, and when we repay that debt to those bravest Americans among us, then we are investing in our future. Not just their future, but also the future of our own country.

Now, this was the lesson that America was sometimes too slow to learn. After the Civil War and World War I, we saw far too many veterans who were denied the chance to live their dreams, men who were unable to find in peace the hope that they had fought for in war. And FDR knew this.

In 1943, before the beaches of Normandy were stormed and the treacherous terrain of Iwo Jima was taken, he told the nation that the veterans of World War II would be treated differently. He said that they must not be demobilized, and I quote, "to a place on a bread line." Demobilized to a place on a bread line or on a corner selling apples.

Instead, Roosevelt said the American people will insist on fulfilling this American obligation to the men and women in the armed forces who are winning this war for us. That is it precisely what the American people do.

The GI bill was approved just weeks after D-Day and carried with it a simple promise to all who had served -- you pick the school, we'll help pick up the bill. And what followed was not simply an opportunity for our veterans, it was a transformation for our country.

By 1947, half of all Americans enrolled in college were veterans. Ultimately, this would lead to three presidents, three Supreme Court justices, 14 Nobel Prize winners and two dozen Pulitzer Prize winners. But more importantly, it produced hundreds of thousands of scientists and engineers, doctors and nurses, the backbone of the largest middle class in history.

All told, nearly eight million Americans were educated under the original GI bill, including my grandfather. No number can sum up this sea change in our society.

Reginald Wilson, a fighter pilot from Detroit, said, "I didn't know anyone who went to college. I never would have gone to college had it not been for the GI bill."

H.G. Jones, a Navy man from North Carolina, said, "What happened in my rural Caswell County community happened all over the country. Going to college was no longer a novelty."

Indeed, one of the men who went to college on the GI bill, as I mentioned, was my grandfather. And I would not be standing here today if that opportunity had not led him west in search of opportunity.

So, we owe the same obligations to this generation of servicemen and women as was afforded that previous generation. That is the promise of post-9/11 GI bill.

It's driven by same simple logic that drove the first GI bill. You pick the school, we'll help pick up the bill.

And looking out at the audience today, I'm proud to see so many veterans who will be able to pursue their education with this new support from the American people. And this is even more important than it was in 1944.

The first GI bill helped build a post-war economy that has been transformed by revolutions in communication and technology. And that's why the post-9/11 GI bill must give today's veterans the skills and training they need to fill the jobs of tomorrow.

Education is the currency that can purchase success in the 21st century. And this is the opportunity that our troops have earned.

I'm also proud that all who have borne the burden of service these last several years will have access to this opportunity. We are including reservists and National Guard members, because they have carried out unprecedented deployments in Afghanistan and Iraq. We are including the military families who have sacrificed so much by allowing the transfer of unused benefits to family members. And we are including those who pay the ultimate price by making this benefit available to the children of those who lost their life in service to their country.

This is not simply a debt that we are repaying to the remarkable men and women who have served. It is an investment in our own country.

The first GI bill paid for itself many times over through the increased revenue that came from a generation of men and women who received the skills and education that they needed to create their own wealth. The veterans who are here today, like the young post-9/11 veterans around the country, can lead the way to a lasting economic recovery and become the glue that holds our communities together. They, too, can become the backbone of a growing American middle class.

And even as we help our veterans learn the skills they need to succeed, I know that all of us can learn something from the men and women who serve our country. We've lived through an age when many people and institutions acted irresponsible, when service often took a back seat to short-term profits, and hard choices were put aside for somebody else, for some other time. It was a time when easy distractions became the norm, and the trivial has been taken too seriously.

The men and women who have served since 9/11 tell us a different story. While so many reaching for the quick buck, they were heading out on patrol. While our discourse often produced more heat than light, especially here in Washington, they have put their very lives on the line for America. They've borne the responsibility of war.

Now, with this policy, we are making it clear that the United States of America must reward responsibility and not irresponsibility. Now, with this policy, we are letting those who have borne the heaviest burden lead us into the 21st century. So today, we honor the service of an extraordinary generation and look to America that they will help build tomorrow.

With the post-9/11 GI bill, we can give our veterans the chance to live their dreams, and we can help unleash their talents and tap their creativity and be guided by their sense of responsibility to their fellow citizens and to this country that we all love so much. May God bless our troops and our veterans, and may God bless the United States of America.

Thank you very much, everybody. Thank you.

(APPLAUSE)

HOLMES: A brief comment there from the president, President Obama there, on stage with some -- that's John Warner there, the former senator of Virginia, also Jim Webb there, the current Democratic senator from Virginia as well, talking about this new GI bill.

Talking about it not just I guess a repayment, as he said, repaying a debt to the veterans of the wars in Iraq and Afghanistan, but also an investment in this country's future. These folks are going to become the backbone of the growing middle class and the backbone of this country in a lot of ways, enable them to -- essentially allow them to get the skills to create their own revenue and make this country a better country and also to get it back on a good economic footing.

Just like the first GI bill, as he said, we'll do this GI bill, extend some benefits to the veterans of 9/11, the veterans of the war in Iraq, the war in Afghanistan. And some of those benefits now, the $78 billion bill, a lot of them will be starting school up in the fall even. This went into effect on August 1st, some of that money, those payments going out to universities, full ride for a lot of these veterans and also some of those education benefits extended to their family members as well.

Stay here with us. We will continue to follow several stories that are moving and shaking for us today, including in the Michael Jackson case, who's going to get control of his estate? Well, his mother wants some control, and she is in court right now trying to get it.

(COMMERCIAL BREAK)

HOLMES: Michael Jackson's mother heading back to court. Katherine Jackson is fighting for some control of her son's estate. Ted Rowlands in Los Angeles with the details for us here now. Ted, we talk about she wants some control of it. Explain to people first off, who has control of it now?

TED ROWLANDS, CNN CORRESPONDENT: Well, the executors of the will, T.J., the two executors that Michael Jackson appointed, are in control of the will right now. And what Katherine Jackson is asking for through her lawyers is basically a seat at the table. She says that she wants some briefings, if you will, on the details of the estates, saying that it's crucial because she's an advocate, the only advocate for Michael Jackson and his wishes and his children that really has been with him all his life.

So, a judge today is going to hear those petitions and also decide, or what we expect rubber-stamp, actually, the agreement on custody. Katherine Jackson and Debbie Rowe have already worked it out outside of the courtroom. We expect that the judge will just basically say OK and approve the deal, and that will give Katherine Jackson custody of the three children.

And as part of that deal, Debbie Rowe will get visitation with those children at a later date when it is, quote, "appropriate" through a third party. They'll -- the psychologist will talk to the kids, and they'll work that out down the line. But all parties seem happy about that.

On the other side of the coin, not the same case. You've got lawyers on both sides who have been bickering through motions, and this judge is going to have to parse it out. Basically, Katherine Jackson is walking a very fine line because this is a no-contest will, meaning that if you contest the will, you could lose all of your rights. And in her case, she is afforded 40 percent of the estate. So, they're walking a fine line. They're trying to get a little bit of control here.

We just heard from a court commissioner that Katherine Jackson is in court. We also understand that two of Michael Jackson's sisters are in court. One of his brothers also in court. So, large contingent from the Jackson family here for this hearing today. We've also been told that AEG, the concert promoters, have filed a late motion. They are asking to be interveners in this, meaning if the judge allows them a seat at the table, there will be more lawyers in the courtroom. Apparently, it is packed with lawyers. It could be very cumbersome for this judge with all these lawyers wanting to be heard.

HOLMES: OK, and usually, when you've got this many lawyers and people fighting over something, there must be some money on the table. Help us understand...

ROWLANDS: Oh, yes.

HOLMES: ... just how much money we're talking about that his estate would necessarily be worth, and of course so many people remember all of the financial trouble that we were told or led to believe he was in.

ROWLANDS: Yes. And it seems like those days are long gone because two things have happened, obviously, with Jackson's death. There's no spending on one end, and then of course his record sales just exploded after his death. So, the financial situation is much better than it was, arguably, the day before he died. The estimated estate worth has been anywhere from $100 million now up to $500 million, some people are estimating at.

Who knows what the reality is there? I'm sure the executors do, and just to have a sense of it. But you can be sure a lot of people are going to want a seat at the table and their hands out looking for something when you have so much money at stake.

HOLMES: Well, it appears to be a big meeting of lawyers and reporters out there in California today. Ted Rowlands for us. We appreciate you, buddy.

Well, severe turbulence causes an emergency landing, and now some passengers have a story to tell.

(COMMERCIAL BREAK)

HOLMES: You know, when they teach classes on implosions, they're going to use this as an example of what not to do. Rob, have you seen this stuff? This is supposed to be an implosion. It looks like somebody just pushed the thing over. This was in Turkey over the weekend.

We've all seen these implosions. You know, they put these charges inside, they blow the thing up, it's supposed to come straight down. It didn't work that way.

ROB MARCIANO, AMS METEOROLOGIST: No, this has been vetted by the higher-ups at CNN, the legal department. This has not been doctored. This is actual video out of Turkey. Because it's hard to believe.

HOLMES: Yes.

It looked like they just -- somebody just blew a hole in the side, and it just toppled over. Luckily, it stopped just short of the building next door, we're told. We're about to roll this thing again. It looks like it stopped just short.

MARCIANO: Or someone took an ax to it.

HOLMES: Yes.

MARCIANO: Like they got a bunch of, you know, Paul Bunyans out there and just whacked into the one side of it, thinking, oh, you know, it's not going to tumble this way.

HOLMES: But you know, somewhere, the guy who built that building is laughing, like, "You can't take my building down."

MARCIANO: That's right.

HOLMES: He's laughing somewhere.

MARCIANO: Or if you do, it's going to come down in style.

(LAUGHTER)

HOLMES: Right.

MARCIANO: Nice work there, a 10 on the somersault landing, nailing the dismount.

Hey, T.J., on to weather. (WEATHER REPORT)

HOLMES: Well, they can't all be Dr. Sanjay Gupta. You know, A- plus doctors. So, if you could grade your doctor, would you give that doctor an A, a B, a C? If you gave them a D or an F, you might need a new doctor. But there's a radical new program that just might save you a lot of money by allowing you to grade your doctor. Stay here.

(COMMERCIAL BREAK)

HARRIS: The best July we've seen in 20 years. That is what happened to the Dow for the month of July. And not just that, the other markets, the Nasdaq, S&P, hitting some pretty good thresholds as well. And that is why Susan Lisovicz has a smile on her face today at the New York Stock Exchange.

Susan, some good news, some sighs of relief, even, but people feeling pretty good about some of the things we're seeing.

SUSAN LISOVICZ, CNN CORRESPONDENT: And surprised, and pleasantly surprised at that, T.J. Top that. You know, August is historically one of the worst months for the three major averages, but we're seeing some nice positive mo.

In fact, the Nasdaq and the S&P 500 hit those big round numbers, threshholds that we really hadn't seen since October and November. Why? Because of two economic reports that came out this morning.

Construction spending, I don't think we have to talk about why that's important. It rose three-tenths of a percent in June. OK, that's not a big amount. Well, Wall Street expected a decline, and the jump came in residential building. So, there's apparently more building there as home sales rise.

The other surprise came from manufacturing. This is a sector that has just been battered since this recession began. Well, it continued to show contraction. It's not healthy. But the declines are coming at a slower pace, and the folks who put out that report said if the trends continue, we could see recovery in the third quarter. Well, the third quarter is just around -- well, you know, we're in it, you know, basically. So, you know, we're looking at improvement, and that's what you're seeing. The Dow, the Nasdaq, the S&P 500 seeing nice gains. Right now, each up about 1 percent -- T.J.

HOLMES: All right. What are our expectations for August?

LISOVICZ: Well, you know, August has been a tough month for a few reasons. One, it's typically very slow. You know, it's been one of the worst for the three major averages. It used to be one of the best because the harvest takes place in August. But guess what? We're not a farming economy anymore.

We're still getting a lot of earnings news. The earnings news has been good so far, T.J. Cisco, Kraft, Procter & Gamble will all report this week, but the big headline now is going to come at the end of the week, and that's the jobs report. We're still expecting job cuts, but nothing like what we saw at the beginning of the year. So, again, we're seeing a steady pattern of improvement, and Wall Street likes it.

HOLMES: We all like it. Thank you so much, Susan Lisovicz. We'll see you again soon.

Meanwhile, the FDIC closed five banks on Friday, and today there are new warnings that more banks could be shut down. You can get more information by logging on to CNNmoney.com.

(COMMERCIAL BREAK)

HOLMES: The goal of President Obama's health care overhaul is to cut costs and improve quality. One health care organization in rural Pennsylvania is proving it can be done. Jessica Yellin examines how it works and whether it will work for the rest of the country.

(BEGIN VIDEOTAPE)

DR. PETER BERGER, CARDIOLOGIST: Do you feel me pushing?

JESSICA YELLIN, CNN CONGRESSIONAL CORRESPONDENT (voice-over): Cardiologist Peter Berger is looking inside a patient's heart and getting graded on his work.

BERGER: We're in the heart, and we're taking some pictures.

YELLIN: The grade is based not just on the success of this procedure but on the overall care his patient receives, sometimes up to months later.

DR. GLENN STEELE, GEISINGER HEALTH SYSTEM CEO: Everybody that's involved in the care is focused on the outcome, not their piece of the action.

YELLIN: It's part of a radical new approach to medicine that's made Geisinger Health System an Obama administration poster child for reform. Geisinger has cut costs and improved quality by standardizing how procedures are done, developing a team approach and emphasizing preventive and follow-up care.

STEELE: All of those things are thought or have been proven to be related to the probability of you having a perfect outcome.

YELLIN: Some of their innovations -- checklist. The medical team follows steps to ensure there are no mistakes, like making sure the right patient is on the table.

UNIDENTIFIED MALE: Can you tell me when your birthday is?

YELLIN: Another innovation -- a warranty. Instead of charging for each test or procedure, patients can pay a flat fee for treating their heart condition. If there are any complications, the patient gets follow-up care for free.

BERGER: This warranty system just provides additional incentive for us to do the right thing.

YELLIN: A third innovation -- patient partnering. A nurse is assigned a patient with a chronic condition and checks in regularly. Nurses can even get a readout of a patient's weight every day. If he gains weight...

JAMES CONNELLY, PATIENT: Dan's going to be on the phone the next morning looking for an explanation.

YELLIN: According to Geisinger, partnering has led to a huge decrease in hospitalizations. Dr. Berger says these innovations have helped make his patients healthier, and Geisinger says in some instances, they've saved up to 7 percent a year.

(on camera): The big question is, can this be duplicated on a national scale? The doctors at Geisinger say some parts more readily than others. For example, it will likely be easier to expand the use of electronic medical records and harder to get primary care doctors, nurses and specialists to work together and change their approach to medical care.

Jessica Yellin, CNN, Washington.

(END VIDEOTAPE)

HOLMES: Stay with us, because ahead in the CNN NEWSROOM, we're talking about the 100 days of the Obama administration, the second 100. Have they been days of change or days of frustration? You can let your voice be heard and cast your vote now at CNN.com/reportcard. Then get the results from CNN's "NATIONAL REPORT CARD" Thursday night at 8:00 Eastern. Also, is President Obama having second thoughts about a tax hike for the middle class? We'll tell you what the White House is saying now. Also, the House has approved an additional $2 billion for the out of gas Cash for Clunkers program. So, will the Senate fill 'er up?

Also, Mahmoud Ahmadinejad formally endorsed as Iranian president for a second four-year term. We'll have more from CNN's Iran desk. Stay with us for those stories and more, right here in the CNN NEWSROOM.

(COMMERCIAL BREAK)

HOLMES: Well, Iranians taking to the streets after their supreme leader gives his public support of President Mahmoud Ahmadinejad. Our Reza Sayah has new information coming in to us. And I guess a lot of people not taking too kindly to this endorsement.

REZA SAYAH, CNN INTERNATIONAL CORRESPONDENT: Yes, T.J. This just in to the Iran desk, protests and demonstrations taking place right now in the streets of Tehran. There was a lot of buzz that demonstrations would take place to coincide with the official ceremony earlier today in Iran, where the supreme leader endorsed President Ahmadinejad.

And indeed, according to our sources, thousands of protesters along Valia (ph) Street, a major thoroughfare in downtown Tehran just south of the major square. Hundreds of security forces in place. We don't have any reports of clashes. We have reports of three people arrested.

Here's another interesting note. According to Fars News, a state-run news agency, also protesting, one of the opposition candidates, Mehdi Karoubi. This is a former government official. He was a no-show at the ceremony today. According to Fars News, he was in what they called illegal protests. Very interesting developments there. We're staying on top of it here at the Iran desk. More for you as it becomes available -- T.J.

HOLMES: All right, Reza. We're going to get back to you as soon as we can. A lot of stuff happening there. We appreciate you. Thank you so much.

SAYAH: Sure.