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Post-9/11 GI Bill Now in Effect; Paving the Way?; Tax Hikes on Middle Class?; Postal Service Faces Heavy Losses; Earthquake Hits Remote Area of Baja California; Geisinger Hospital's Innovative Change in How Services Offered

Aired August 03, 2009 - 14:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: And we're pushing forward now on the new improved G.I. bill, now in effect. The bill's been around in some form since World War II. It made college a reality for those who might never have had the chance otherwise, a kind of compensation for those who served, an investment in their future and the country's.

So many people you have probably heard of went to college on the G.I. bill from Bill Cosby, Tito Fuentes, Johnny Cash, to Harry Belafonte, Steve McQueen, even Gene Hackman. The list goes on and on and on. And the G.I. bill helped the greatest generation build post- World War II America. President Obama today saying, too, that the new version will prepare the extraordinary generation to take us forward.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: 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 G.I. bill, we can give our veterans the chance to live their dreams.

(END VIDEO CLIP)

PHILLIPS: Well, President Bush signed the post-9/11 version of the G.I. bill last year. This version covers tuition at public universities for some active soldiers and if you have three years of active duty since 9/11, you can get four years of tuition plus a monthly stipend.

Troops with at least 10 years of active duty can transfer the benefit to a spouse or a child. And then guardsmen and women and reservists with at least three years active duty in the last seven years can get the full tuition package, too.

Now, Staff Sergeant Jim Miller of the U.S. Marines introduced the president at today's event. He's actually got big plans now. After three tours in Iraq, he's using the GI bill to help take the next step in his life, enrolling at George Mason University this fall.

Congratulations.

STAFF SGT. JIM MILLER, U.S. MARINES: Thank you, ma'am. I appreciate it. PHILLIPS: Well, let me ask you, when you introduced the president, did you have a chance to have a chat with him or tell him, hey, by the way, this is really great, let me tell you why? I mean, did you get a chance to chat with him at all? And what did you tell him?

MILLER: Well, actually, I'd say it was really humbling. Not only did I get a chance to meet the president, but also Senator Warner, Senator Webb, who really spearheaded this event for us. I mean, the post-9/11 GI bill, because of their initiative, it's the reason I'm sitting here today -- or sitting here today and talking to you.

But, I did. I spoke to him just briefly before I introduced him, and just said how privileged I am and an honor to meet him. So, it was a humbling experience. It was a humbling experience that I actually got a chance to introduce him today.

PHILLIPS: Well, Jim, no doubt, it's got to be an amazing experience, especially as a Marine, to be able to meet your commander in chief. But put into perspective for us, because here on our show, we are -- I mean, the veterans are close to our heart, and we cover a lot of stories involving veterans. And unfortunately, there have been some horrible breaks given to them recently and for a number of years.

And so, when something like this comes forward, how is this helping the men and women who, they're coming home to pink slips, they're coming home and becoming homeless and living in shelters? They're not getting good benefits with regard to the medical situation. You know, how bad is it for men and women right now, and what will this do?

MILLER: This is an extremely unique opportunity, and one that us veterans have not received or even seen since the 1940s. I mean, as you know, literally, there's an interesting statistic that was being talked about today by Senator Webb.

For every dollar the U.S. government spends, these individuals, the veterans, gave back $7 to our economy and helped push them into the new century, helped form the middle class. It was absolutely incredible.

Now, taken from those specific statistics, now it's relied on us to help build a new economy, help push forth new innovations and new opportunities that we all have. So, I think for any new veteran that's coming out of the military, regardless of branch or service, I definitely suggest that they take advantage of these new benefits.

Like you just said earlier, a monthly stipend of BAH E-5 pay that's -- here locally, that's $1,900 a month, and I'm going to get every month just to go to school. Plus, they're going to pay for tuition, they pay for books, they pay for fees.

It's an incredible experience, one that I hope that all veterans take advantage of.

PHILLIPS: And I understand you're going to major in business communication.

MILLER: Yes, ma'am.

PHILLIPS: What do you want to do?

MILLER: Well, actually, my plan is, after I receive my degree, to join the Department of State and become a diplomatic security agent.

PHILLIPS: That's your goal?

MILLER: That's my goal, ma'am, yes. It's been my goal for awhile.

PHILLIPS: OK. Well, we would like to follow you through the process. And as soon as you graduate, we would love to spend the first day on the job with you, Jim.

MILLER: Absolutely. Thank you, ma'am. I appreciate that.

PHILLIPS: Well, congratulations. And I appreciate you joining us and telling us about it.

MILLER: Thank you.

PHILLIPS: All right. Jim Miller, appreciate it.

Well, if you have a job, a house and some money tucked away in stocks, you may be wondering, what recession? Foreclosures are easing in a lot of places, and home prices are rising almost everywhere. Construction is up, too. The markets are surging. Blue chips just came off their best July in 20 years.

If, however, you don't have a job, recession is reality as far as the eye can see. And over the weekend, Treasury Secretary Tim Geithner predicted unemployment may not peak for another year, even as the economy starts to grow.

Joining me this hour to push these issues forward, CNN Chief Business Correspondent Ali Velshi. And from Wall Street, CNN's Susan Lisovicz.

Ali, why don't we start with you?

I mean, you're up on the interviews we saw over the weekend. And we started hearing about higher taxes, not just on the rich. And, you know, the back and forth about, are we out of recession, not out of recession? I mean, a lot of people got pretty nervous after Sunday.

ALI VELSHI, CNN SR. BUSINESS CORRESPONDENT: Yes. Look, the reality is we are in the deepest recession, the longest recession we've had in generations. And we have always known a couple of things.

If the stock market recovers ahead of the recession -- so look at the bottom of your screen, you can see we're starting to see that stock market move ahead. We also know that jobs are a lagging indicator. They're one of the last things to recover. So, it's not a great surprise that we'll be into 2010 before we start to recover.

And let me just give you a couple of numbers. I won't overwhelm you with them, but let's go back to when we were before this recession.

Unemployment was about five percent. Now we're getting close to 10 percent. And most estimates are that we won't get back down to that five percent, even in a recovery, until 2013.

So, jobs are always going to be a problem. And they are so central to recovery, that if you're not in a job or you're losing your job, the fact that other parts of the economy are recovering may not seem that relevant to you -- Kyra.

PHILLIPS: So, can the Obama administration take credit for this?

VELSHI: Well, you know, I was speaking to a number of economists this morning who were saying that this economy was in a recession last year, last fall it got really serious. As one economist described it, we sort of fell into an abyss. The bank bailouts and TARP and the Fed pulled us out of the abyss and let the business cycle continue.

So, we're probably premature for the Obama administration to be taking any credit for the recovery. They might take credit later on if it's a particularly robust recovery. But for now, this is not stuff that this administration has done.

PHILLIPS: Well, what's up with Cash for Clunkers? It's kind of stalling within the Senate. It passed the House no problem.

VELSHI: It stalled in the Senate, but what a remarkable program. I mean, this thing was supposed to have money probably until the end of August, and there was a deadline of November, and they ran out of money in the first week. All these people trading in their cars.

Ford has now told us it's had its best month in two years, largely because of Cash for Clunkers. So, interesting development here, that people really took up this offer that they could trade their clunker in, get $3,500 to $4,500 back, and buy a fuel-efficient car.

It means two things. Things are maybe a little better in the economy and folks are worried about those high gas prices. They're thinking they can protect themselves against the future. We'll keep you posted to see whether it gets through the Senate and another $2 billion becomes available for people who want to trade in their cars -- Kyra.

PHILLIPS: Got it, Ali. Thanks so much.

Let's talk more about cars and the auto sector.

Susan, Ford reported a two percent increase in sales. It sounds small, but it's still significant, right? SUSAN LISOVICZ, CNN BUSINESS CORRESPONDENT: It's huge, because it's a big-ticket item, a car is, and it shows that consumers are spending. Sure, Cash for Clunkers helped, but the fact is consumers went out there, they saw a deal, they bought it.

It also shows that credit is available as well, or at least not as tight as it was. That's the abyss that Ali was just referring to.

So, yes, it's a real big two years that we've seen the first monthly increase. And let me just tell you, ,we're not out of the woods yet.

Why is that? Because that is Ford's sales. We also got GM's sales. Year over year, its monthly sales fell 19 percent. But if you look what happened between June and July, GM says its sales increased 12 percent.

The same thing happened with Chrysler. Monthly sales fell nine percent, but if you compare it just from June to July, 20 percent.

The trend is telling us that things are getting better. And yes, Cash for Clunkers definitely helped out. Also, Chrysler had its own additional incentive, $4,500. So, what a time to get a car, and people did respond -- Kyra.

PHILLIPS: Well, let's be clear. There are still some big warning signs on the economy, specifically unemployment, and now there could be more layoffs at GM.

LISOVICZ: That's right. And so, it's very nice to see these kind of trends. We have waited for a long time. To Ali's point, this is the longest recession we have seen since World War II.

But yes, GM said today that 6,000 workers took its latest early retirement offer. GM was looking for at least double that number.

Part of the lean, mean GM, the restructuring that's happening, is it has to bring its numbers down. This was a company that at one time numbered nearly half a million strong in the U.S. Now it's down to 54,000. It needs to get down to 40,000.

So, don't be surprised if you hear that more workers are laid off.

But today, most of the news is very encouraging, Kyra, and you can see it in the stock market, something also Ali was talking about. We're coming off the best July, as you mentioned, in 20 years for the Dow and the S&P 500.

And guess what? The first trading day of August, we're seeing the Nasdaq hit 2,000 for the first time since October. The S&P 500 -- so many of our mutual funds are tied to what the S&P does -- hitting 1,000 for the first time since November.

Ford shares, by the way, trading at $8.50. What? That doesn't sound like a lot. Well, this was a stock that was trading at a buck early this year. A 52-week high.

And, yes, the bulls are finding that they have more room to run. Triple-digit gains for the Dow and for the Nasdaq, S&P 500. Terrific start to the month of August -- Kyra.

PHILLIPS: All right. Susan Lisovicz, thanks so much.

Well, most of the focus in the Cash for Clunkers program has been on the cash, and rightly so, but later this hour, we're going to look at the clunkers, specifically what's supposed to happen to them once they're off the road. Poppy Harlow will show and tell.

Now about those middle class tax hikes that I mentioned. Over the weekend, two of the president's top money men said that you can never say never. But if you were with us last hour, you heard the White House press secretary say never.

CNN's Ed Henry at the White House.

So, Ed, which is it? We're getting mixed messages, my friend.

ED HENRY, CNN SR. WHITE HOUSE CORRESPONDENT: Well, Kyra, it's probably somewhere in the middle. I mean, the president's two top money men, as you described them, Larry Summers, Tim Geithner, two very well-experienced pros, they don't just throw things out there for nothing. So, when they both left the door open to the possibility of tax increases, a lot of ears in Washington, around the country as well, a lot of pocketbooks probably perked up wondering what exactly the president's plans are.

The White House spokesman, though, as you say, Robert Gibbs, in the last half-hour, again and again trying to shoot down the notion of tax increases, though there were some caveats here and there.

Take a listen.

(BEGIN VIDEO CLIP)

ROBERT GIBBS, WHITE HOUSE PRESS SECRETARY: I'm reiterating the president's clear commitment in the clearest terms possible that he's not raising taxes on those who make less than $250,000.

QUESTION: Did you speak to them about the fact that they did raise...

(END VIDEO CLIP)

HENRY: So, you heard a lot of pressing after that. You know, people wondering what scenarios there could be.

Bottom line, Robert Gibbs insisting that the president will keep his campaign pledge, which is that he promised he would not raise taxes on anyone making under $250,000 a year. But essentially, again, door open, as it has been for a long time from the president's own campaign, anyone over $250,000 a year could have their taxes raised. I mean, I think the bottom line when you step back to the door opened, door closed, is, the fact of the matter is, especially in the middle of this health care fight, it's going to cost money. Even if money is saved in the long run in the health care system with reform, in the short term, basically any plan on the table is going to increase costs in that short term.

You add that on to the stimulus funding, the bailouts, all the rest, we are trillions of dollars in debt. And that's why it seems inevitable that some sort of taxes are going to be increased at some point in the Obama administration. It's really just a matter of when -- Kyra.

PHILLIPS: Ed Henry live from the White House.

Ed, thanks.

HENRY: Thank you.

PHILLIPS: Three Americans hiking in northern Iraq and, of all places, now held by Iranians. We're going to bring you the latest on what happened and what the Iranian government is saying about their detention.

(COMMERCIAL BREAK)

PHILLIPS: The fate of three Americans held by Iran has taken a disturbing turn. Swiss Embassy officials in Tehran met with Iranian officials today and were told that they knew nothing about the detention but would follow up on the matter. The Swiss were acting on behalf of Washington because the U.S. and Iran don't have diplomatic relations.

Kurdish officials met with Iranian border counterparts who also said they had no information on the Americans. The three were hiking in Iraq's northern Kurdish region last week when they apparently crossed the border into Iran. Iran's state-run media reports that they were charged with illegally entering the country.

Captain Michael Scott Speicher, the first American shot down in the Gulf War in 1991, one of the last to come home. His remains now identified.

Speicher's family getting some answers after more than 18 years of grief, false leads, false hopes, fears and rumors. And over the years, his status went from killed in action, to missing, then captured. Maybe in an Iraqi prison, scribbling his initials on a wall, and then missing again. The Navy says that an Iraqi citizen told U.S. forces last month he witnessed the burial of Speicher's remains after that crash.

Tossed around so violently in the air, ambulances were waiting on the ground. Some Continental passengers talk about this morning's terrifying flight.

(COMMERCIAL BREAK) PHILLIPS: Well, not a good day at the airport when they're wheeling stretchers across the tarmac. A Continental flight from Rio de Janeiro to Houston makes an unexpected stop this morning. Sudden, severe turbulence forcing an emergency landing in Miami.

At least 26 people were hurt, four seriously. It seems they were cruising at 38,000 feet when the plane just dropped violently.

(BEGIN VIDEO CLIP)

JOHN NORWOOD, PASSENGER: ... where the masks come down and everything. People that weren't seat-belted in flew up and hit the ceiling. So, their faces, their heads hit the plastics and broke all the plastics up at the top.

UNIDENTIFIED FEMALE: So was there any warning, "Passengers, buckle up"?

NORWOOD: No. No. It happened like this.

(END VIDEO CLIP)

PHILLIPS: Well, at least seven people were taken to local hospitals for treatment.

Chad Myers, you know a lot about turbulence. You've experienced it. You've covered it. You're a man of all traits.

CHAD MYERS, CNN METEOROLOGIST: You know, and I always fly with my seatbelt on. I mean, my seatbelt might be off for 30 seconds. Whether I'm not standing up, going to the restroom, or taking care of my son, something like that, I always have it on. And those people that had their seatbelts on were not injured in the flight. The people that did not have them on were the people that were thrown literally into the ceiling of this plane.

Now, I just kind of want to take you to where this plane was. It was flying just to the north of Puerto Rico and then on up here, past the Dominican Republic. And somewhere in here, it just experienced a considerable drop in altitude, like it just hit a hole in the air. And that's where those people were -- as the plane went down, the people were slammed into the ceiling, and then when the plane caught, they got back down on the ground again.

But this must have been something called clear air turbulence, guys. I just don't think I see any significant weather in the area enough to cause that type of up-and-down motion when it comes to what I would consider enough turbulence weather-wise.

It's just an area where the air is nice and flat and then, all of a sudden, at some point in time, you can't see it, the pilot can't see it, but that air is either going down or going up. And at least at a couple points there they said it was going down, then the plane finally caught and flew again.

(WEATHER REPORT) PHILLIPS: We could be looking at a new endangered species. Mail carriers, as we know them, anyway. Snow, rain, heat and gloom of night couldn't stop them, but unfortunately, the digital age might.

(COMMERCIAL BREAK)

PHILLIPS: A tearful and often indignant good-bye for Dae'von Bailey in California. The 6-year-old boy known affectionately as "Dae-Dae" (ph) was found beaten to death in his south Los Angeles home last month. His mother's ex-boyfriend is accused of the crime. Friends and relatives at his funeral are outraged that social workers returned the boy to the boyfriend's care after a nurse actually raised concerns about the abuse.

Police are still searching for Marcas Fisher. This is a story that we want to stay on, so we want to keep his mug shot up there.

We believe he is being hidden with friends or family. They might be helping hide him out. We'd like to keep that picture up and let you know that police in Los Angeles need your help to find this alleged killer that is still on the loose.

Well, a veritable who's who of the boxing world paying tribute to slain former champ Vernon Forrest today. His funeral is being held in Lithonia, Georgia, just outside of Atlanta.

CNN's Rafer Weigel is there -- Rafer.

RAFER WEIGEL, CNN SPORTS CORRESPONDENT: Well, Kyra, you know what? This has really been a huge loss not just for this community and the boxing community, but it's even been felt beyond that.

We're here at New Birth Missionary Baptist Church, where about 1,000 people have turned out to not only just celebrate, but also honor the 38-year-old boxer who was tragically gunned down. Among the who's who you were talking about, Evander Holyfield, Oscar De La Hoya, Sugar Shane Mosley.

Now, Forrest wasn't one of the more outspoken boxers. He wasn't a flashy guy, but he was four-time champ in two different weight classes. But he was really known for his charity work.

He did a lot of work with mentally challenged young adults. And to give a nice anecdote, Mosley, who lost to him two times, just absolutely adored the man.

And earlier, we spoke to Evander Holyfield, who described Forrest's humble beginnings.

(BEGIN VIDEO CLIP)

EVANDER HOLYFIELD, FMR. HEAVYWEIGHT BOXING CHAMPION: Vernon is one guy that, you know, came from the ghetto, but made a conscious decision that he didn't want to live that lifestyle. And, you know, he set goals and he was able to reach his goal. He was one of the top boxers in the state of Georgia, but made the Olympic team and the world, two-time champion. So, he was a man that regardless of how things started, you know, he had a plan.

(END VIDEO CLIP)

WEIGEL: Now, Forrest's murder still has not been solved.

Now, we have some surveillance video, again, gunned down after a robbery attempt. The robbery took place at a gas station in downtown Atlanta, right near a parking lot. Police say that a car, a red Pontiac, carrying three or four suspects as it pulled off to the right of your screen right there, after they pulled off camera they went and supposedly -- or allegedly targeted Forrest for his Rolex watch and his championship ring.

Now we're going to show you some video at an apartment complex, where police say these are the suspects that gunned him down. Forrest, police say, went and armed himself and went to try to reclaim his property. And the second shot in this video is of Forrest, police say, leaving the apartment, and after which he was gunned down, shot in the back several times.

And as of now, as I said, his murder is still unsolved. He leaves behind a 12-year-old son -- Kyra.

PHILLIPS: Rafer Weigel, appreciate it so much. We'll stay on top of that story.

And as we reported this hour, the surprisingly popular Cash for Clunkers program could be done for unless the Senate acts quickly.

CNNMoney.com's Poppy Harlow has more from New York now.

Hey, Poppy.

POPPY HARLOW, CNNMONEY.COM: Hey there, Kyra.

Yes, senators meeting in less than an hour. A huge topic on the table, of course, aside from health care, $2 billion in potential additional funding for Cash for Clunkers.

Why? Because that initial $1 billion has essentially all been used up in a very short amount of time. There's a lot of interest in this program. And that's because people can get up to $4,500.

They trade in their big trucks or SUVs for a more fuel-efficient model, they get that government credit. But the outcome in the Senate really, Kyra, still unclear.

You've got opposition on both sides. You've got some Republicans arguing this is just another auto industry bailout, so they don't like it. And you've actually got some Democrats saying, we don't like it, we don't want more funding, because the fuel efficiency standards, Kyra, aren't high enough. So, it got through the House pretty easily on Friday, not clear that's going to happen in the Senate -- Kyra. PHILLIPS: All right. Now, all those clunkers that have already been traded in, what's supposed to happen to them? They're supposed to be scrapped, right?

HARLOW: You know, and they are. And we visited a dealership here in New York, a Nissan dealership that just started doing this. And it's interesting how they kill these cars to get them off the road.

What they do is they drain the oil out of the engine. They pour that mixture in. That is sodium silicate. It's essentially liquid glass. Then you rev up the engine. About seven minutes later the engine dies forever, so you can never drive that car again, and that Voyager was actually the first one that that man right there at the dealership killed. Take a listen to what he said about that.

(BEGIN VIDEO CLIP)

ANTHONY CACCIOLA, PREMIUM NISSAN: As service manager, you never want to see them junk their old cars. You would rather see them fix them, but as the sales end of it goes, it's going to be a huge success, and you know, I can't wait to do another hundred of them.

(END VIDEO CLIP)

HARLOW: He wants to do another hundred of them, Kyra, because then they sell 100 new cars, and that is good for any dealership these days. What happens, those cars are stripped of the useful parts, and then they're crushed like that.

But some good news to tell you about for the dealers, the rules of the program have been changed that allow them to wait to trash the clunker until they get that government rebate. And that protects them in case the program doesn't get more funding, and they're not stuck with a vehicle that's crushed, and they don't get anything back for it, Kyra.

So, it's interesting, people are weighing in on my Facebook page, telling me what they think. I want to point out one comment, too, from Howard. He writes, "Win/win situation. They should do it again in five years," Kyra, "when electric cars become more prevalent."

So, consumers like this. We'll see if senators vote in favor pretty soon -- Kyra.

PHILLIPS: Well, we'll follow it. Thanks, Poppy.

HARLOW: Sure.

PHILLIPS: Well, there might come a day when you tell your grandkids about a person called a mail carrier, who came by every day but Sundays and holidays. You want to know why? Let's just say check your e-mail. CNN's Brian Todd reports.

(BEGIN VIDEOTAPE) BRIAN TODD, CNN CORRESPONDENT (voice-over): For almost three decades, Delvin Johnson's (ph) been unloading, sorting, hoofing it house by house, becoming a fixture on his Northwest Washington beat.

DELVIN JOHNSON (ph), MAIL CARRIER: OK. All right.

UNIDENTIFIED FEMALE: OK. Thanks a lot.

JOHNSON: Thank you.

TODD: He survived the anthrax scare at his local station and other perils of the job.

(on camera): So, in 30 years, how many dog bites?

JOHNSON: This one.

TODD: That one?

JOHNSON: This one. Yes.

TODD: Only one?

JOHNSON: After 28 years...

TODD: You went 28 years without one?

JOHNSON: ... without one.

TODD: And you just got one a couple years ago?

JOHNSON: And just got one -- yes. Yes. But like I said, comes with the job, though.

TODD (voice-over): For mail carriers like Delvin (ph), dog bites may be the least of their worries these days. The U.S. Postal Service is now on the government's list of high-risk agencies. It's projected for a net loss of $7 billion this fiscal year alone. We're all simply doing more e-mailing and online bill paying, and that means a lot less physical mail to and from your doorstep.

(on camera): What is the volume like now compared to what it was before?

JOHNSON: Well, about, I'd have to say about a third to a half. It's dropped off.

TODD: In how long?

JOHNSON: In about a year and a half, to a year, yes.

TODD: Is that the most drastic it's been for you?

JOHNSON: The most drastic, yes.

TODD: In fact, over the past two years, the Government Accountability Office says the volume of physical mail has seen its most drastic drop in at least two decades, plummeting 9.5 billion pieces in fiscal year 2008, another 18.5 billion by the beginning of this summer. A postal system built to handle so much more is now oversized, antiquated and considering cutting benefits and work force. As for our mail, the service has drawn up a list of nearly 700 post offices for possible closure, and...

JORDAN SMALL, U.S. POSTAL SERVICE: Mail volume levels can no longer sustain six-day-a-week delivery.

TODD: Back in that D.C. neighborhood, we asked Janet Bachman about that.

(on camera): They're talking about cutting it from six days to five days.

JANET BACHMAN, WASHINGTON RESIDENT: Wouldn't bother me at all. In fact, I personally think that for residential mail delivery, today, three days a week is sufficient.

TODD (voice-over): Another story for small businesses on Delvin Johnson's route. Dave Lesser (ph) helps run a nonprofit that promotes nutrition. He says his operation sends out hundreds of pieces of mail each week to places like doctors' offices. His clients, he says, count on them.

DAVE LESSER (ph), RUNS NONPROFIT: People are really interested in having something solid that they can hold on to, that they can look at, flip through the pages.

TODD: Still, it now looks like the icon that never stopped for snow, rain, heat or gloom of night is about to become much less a part of our lives. Neighborhood resident Patrick Basse, who grew up in France, offers some perspective.

PATRICK BASSE, WASHINGTON RESIDENT: Where I come from in Europe, the mailman used to sit at our table, and then here it's very nice too, but it tends to disappear.

TODD (on camera): Now, as for Delvin Johnson (ph), he's already been offered early retirement twice. He says he's held it off both times. He wants to keep going another three years until the age of 55 because he says he's got a daughter getting ready to go to college.

Brian Todd, CNN, Washington.

(END VIDEOTAPE)

PHILLIPS: Cutting costs and improving quality, the two major goals in the president's health care reform plan. Some call it a radical approach to medicine, but we'll show you where such a plan is already working.

(COMMERCIAL BREAK)

PHILLIPS: Getting word now of an earthquake in Baja, California. Chad Myers, what do you know?

CHAD MYERS, AMS METEOROLOGIST: In the Gulf of California, in a very remote area -- Kyra, literally, there might be in the entire area within 500 square miles of this place, less than maybe 1,000 people, which would be good, because this is a major 6.9 earthquake. Now, here would be San Diego. Way down here would be Cabo San Lucas.

And then if you zoom into here, this was a 6.9, but four minutes before this. And sometimes we talk about this when we say an earthquake just came, is there going to be another one, that earthquake right there, that was the first shock. That was the foreshock of around 5.5, and then the real shock was a 6.9. This happened about 30 minutes ago.

We've been in touch with our affiliates in San Diego. They're not saying that they felt anything at all there. And let me just kind of give you an idea of the remoteness of this area. Let's go all the way down here. I'm going to have to drive you all the way down here to Cabo, where everybody knows Cabo San Lucas and so on and so on.

We're going to get back up here to where the earthquake occurred. And I'm just going to look for literally a road. I'm going to try to look for a village. And I'm going to go all along this area here, popular fishing area here. You may see boats -- you're going to see more boats out in the water than you might see people here on land, and literally, roads on land. I cannot even find a city anywhere in the area. Great news there.

Now, because this was only about ten kilometers deep, only six millimeters -- six miles deep, there very well may have been a tsunami here. There's no warning, though, out for British Columbia, for Hawaii, for the West Coast because it happened in this Gulf of California. The wave would literally not come out and come around and get any of the larger areas here.

I'm going to close this up, get back to the Google Earth. We'll see if it changes. Sometimes, the magnitudes will go up or go down just because the seismologist will look at it and say, boy, this was a bigger quake than we think or this was a smaller quake than we think. Look at this seismograph, wherever it might be, and they can actually better triangulate that. So, we'll keep you advised as the day goes on. That is a major earthquake. The good news is, it's not in a majorly populated area -- Kyra.

PHILLIPS: Good. Thanks, Chad.

MYERS: Sure.

PHILLIPS: O.J. Simpson's lawyer is in court today in Nevada trying to get him out of prison. The attorney is asking a state Supreme Court panel to set bond while Simpson's conviction is appealed. No decision is expected today. Simpson is serving up to 33 years for kidnapping and assault with a deadly weapon, all from that infamous confrontation with two sports memorabilia dealers just a couple years ago. Paris, Prince and Blanket's grandma now officially their new guardian. A judge today ruling on several issues related to Michael Jackson's estate. CNN's Ted Rowlands is live at the L.A. courthouse and has been following it all day. Hey, Ted.

TED ROWLANDS, CNN CORRESPONDENT: Hey, Kyra. The first ruling here from this judge was to award Katharine Jackson custody of the three children. They did set another hearing in October, just a sort of a status, but she does have custody.

A little drama at the beginning of this hearing. Dr. Arnold Klein, the dermatologist who treated Jackson who Debbie Rowe worked for -- do you remember? His lawyer showed up and asked the judge for standing in the courtroom and said Klein wanted to play a role in the children's life. The judge said why are you here. He went to have a sidebar with the judge, and then the judge sent him back and then ruled he did not have any standing, and they moved on.

Other issues that have been dealt with, they have given Katherine Jackson and the children a stipend out of the estate. All parties agreed to that. They gave Katherine Jackson 100 percent of what she was asking for, the children got about 80 percent. The judge said a little bit of it -- it was a little excessive, so they hammered that out.

Then, for the last hour and 40 minutes, the attorneys have gotten together to try to come up with a plan to allow Katherine Jackson some sort of seat at the table in terms of the estate. They have been asking for that. The judge has now just reconvened inside the courtroom, is Katherine Jackson, Latoya Jackson, Randy Jackson, Rebie (ph) Jackson, along with an army of lawyers and journalists. We'll see what the judge comes up with here in the next few minutes as far as what Katherine Jackson's role will be in the estate. That's really only the pending issue from here on out.

PHILLIPS: All right, Ted Rowlands. Thanks.

There are no atheists in foxholes. We've all heard that. But what about summer camps? Well, turns out, there are.

(COMMERCIAL BREAK)

PHILLIPS: Cutting costs and improving quality, the two major goals in the president's health care reform plan. Some call it a radical approach to medicine. But we'll show you where such a plan is already working.

(COMMERCIAL BREAK)

PHILLIPS: Iranian president Mahmoud Ahmadinejad got what he wanted and needed today. Iran's supreme leader formally endorsed Ahmadinejad for a second term. But there was a hitch. The ceremony, aimed at showing unity, was boycotted by prominent critics of June's disputed presidential election. Among those staying away, two former presidents and the two defeated pro-reform candidates. The endorsement by the supreme leader clears the way for Ahmadinejad to take the oath of office on Wednesday.

Building fires, making crafts and questioning religion. It ain't your usual summer camp starting up in Britain. Check out this story by CNN's Errol Barnett.

(BEGIN VIDEOTAPE)

ERROL BARNETT, CNN INTERNATIONAL CORRESPONDENT (voice-over): At first glance, this could be any camp, anywhere. But look beyond the rain, and you'll realize campers here stand out.

NAOMI MOYLAN-TORKE, CAMPER: They had a Bible (INAUDIBLE) in school and it contradicts itself.

BARNETT: Questioning religion. Doubting creationism. Here, Naomi and her fellow campers are encouraged to build their own beliefs.

SAMANTHA STEIN, CAMP DIRECTOR: The camp aims to provide a secular alternative for the children of parents who are raising them in a nonreligious environment. So, for example, the scouts, there are several Bible camps, Christian camps, even Jewish camps, and they all have fun activities as well as being from that particular religion. We wanted to provide an alternative for someone that comes from an atheist, humanist and agnostic perspective.

BARNETT(on camera): Now, this is not the first official camp for atheists. It's based on five other camps quests in the United States and one in Canada. Young people here aged 8 to 17 live in these tents around me and get to participate in outdoor activities and classes where they learn not what to think, but how.

UNIDENTIFIED MALE: So, you're saying there's a difference between lying outright...

BARNETT: In this philosophy session, campers analyze the meaning of the "Emperor's New Clothes," debating whether or not a lie is a good thing if everyone believes it.

Critics say the camp's true agenda is to lure children away from a belief in the supernatural. They point to a 500-pound donation from the foundation of famed atheist and author Richard Dawkins. In the past year, Dawkins has helped the British Humanist Association with its atheist ad campaign.

STEIN: We're not trying to pull anyone away from religion. It's really just sort of a social support mechanism for them.

UINDENTIFIED FEMALE: Reality, religion...

BARNETT: Supporting campers is Rita Harrold, who told me criticism exists because questioning religion is still taboo.

RITA HARROLD, COUNSELOR: In my country, in Ireland, they have just introduced a blasphemy law where it costs 25,000 euro to criticize religion and cause offense to a number of people within that religion. It's definitely alive and well in a lot of places.

BARNETT: Controversial or not, Camp Wuest UK was a success. This introductory session of camp sold out at a fee of 275 pounds or $450 per person. Next year, Camp Quest plans to extend its season so it can enroll more campers.

No promises of better weather, though. One counselor lightheartedly quipped, you could pray for it.

Errol Barnett, CNN, Bruton, England.

(END VIDEOTAPE)

PHILLIPS: So, what do you think about a Miss Land Mine beauty pageant in Cambodia? Our first reaction when we came across this story today was could this even be true? Well, apparently, the Cambodian government banned the event today, calling it an insult to the disabled.

But we wanted to dig a little deeper, and this is what we discovered. Not only are the contestants beautiful, but they've got guts. They and the Norwegian artist who created the pageant see it as a way to empower them and other disabled people. And they view it as a perfect way to raise awareness about the dangers of landmines. Believe it or not, an estimated four to six million land mines and other unexploded ordinance remain in Cambodia from decades of civil war, and they kill or wound hundreds of people every year.

So tweet us at twitter.com.kyraCNN and let us know what you think. Is the pageant a good or bad idea?

(COMMERCIAL BREAK)

PHILLIPS: They're calling it the catch of a lifetime. A father catches a baseball in one hand while holding his baby in the other. Let's hope mom wasn't watching.

Jeanne Moos shows us that that move and other most unusual catches.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): it was the crying baby versus the soda kid. Did you catch the guys catching foul balls with one hand while holding kids in the other?

ANNOUNCER: An unbelievable play.

MOOS: Sure, it happens every once in awhile, guys catching pop- ups with their kid propped up in their arms. But for it to happen twice in three days has sports fans raving with competing superlatives. Was this the best foul ball catch ever?

ANNOUNCER: And with the catch! And the baby!

MOOS: Or was this? ANNOUNCER: Contract time.

MOOS: Web sites compare the two bare-handed catches. Fans gave points for difficulty with the heavier kid, they subtracted points because this ball seemed deflected by someone and thus, easier to catch. They gave props to this kid for how he fielded his soda.

UNIDENTIFIED MALE: He can hold this gigantic soda and not drop it while the dad doesn't drop the ball. That kid is awesome and so is the dad.

MOOS: Bobby Crosby should know. He also multi-tasked while catching fly balls.

Isn't holding a camera a little like holding a baby?

UNIDENTIFIED MALE: It's definitely tougher to hold a baby. They don't come with those nice straps. They just strap right to your hand.

UNIDENTIFIED MALE: That's the camera guy. There we go.

MOOS: Bobby attends about 75 Dodgers games a season. He likes to tape himself catching balls during batting practice.

UNIDENTIFIED MALE: Oh, man!

MOOS: He sees what a ball can do to somebody. In fact, he's prevented a few people from getting smacked.

UNIDENTIFIED MALE: Hello. Oh, yes!

MOOS: Though catching with a glove isn't quite as entertaining, catching with a pizza box. Bobby even taped himself giving a ball he caught to a kid. Unlike the guy who shoved around a 4 year-old a few years back while scrambling to get a foul ball. And the announcer called foul on him.

ANNOUNCER: There's a jerk in every park.

MOOS: But this guy didn't jerk. He didn't drop the ball and the kid didn't drop a drop.

ANNOUNCER: That is one of the better grabs you'll ever see!

MOOS: Jeanne Moos, CNN, New York.

(COMMERCIAL BREAK)

PHILLIPS: Well, 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 the system works and whether it will work for the rest of the country.

(BEGIN VIDEOTAPE)

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

UNIDENTIFIED MALE: 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 received. Sometimes up to months later.

DR. GLENN STEELE, CEO, GEISINGER HEALTH SYSTEM: 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? Check lists. 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.

DR. PETER BERGER, CARDIOLOGIST: 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 hospitalization. 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 reports and harder to get primary care doctors and nurses and specialists to work together and change their approach to medical care.

Jessica Yellin, CNN, Washington.

(END VIDEOTAPE)

PHILLIPS: And have the second 100 days of the Obama administration been days of change or days of frustration? Let your voice be heard.

You can cast your vote at CNN.com/reportcard, then get the results from CNN's National Report Card, Thursday night at 8:00 Eastern.

Hope you had a great Monday. But, stay with us because Rick Sanchez takes it from here.