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President Obama on the Economy; U.S. Journalists Back Home; Iran's President Takes Office; Opinions on Health Reform; Bill Clinton Back on Stage; Deadly Gym Rampage; Health Care Reform Questions; Christmas in August at Famed London Shop
Aired August 05, 2009 - 12:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DON LEMON, CNN ANCHOR: We're going to get now to Wakarusa, Indiana and the president speaking now, talking about the economy. Let's listen in to President Barack Obama.
(JOINED IN PROGRESS)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Please, everybody have a seat. Thank you so much.
Well, it is wonderful to be in Wakarusa. Thank you so much for the wonderful welcome. Herman, thanks for the great introduction. It is great to be back in Indiana.
(APPLAUSE)
OBAMA: This is as close as I've gotten to home in a while. And I flew out here with somebody who I think the people in Indiana have known for a long time and have trusted for a long time, because he's fighting for working families in indiana each and every day, and that is our great senator, Evan Bayh. Please give Evan a big round of applause.
(APPLAUSE)
OBAMA: And it's nice to get out of Washington and spend some time with people who actually sent me to Washington. You know, too often...
(APPLAUSE)
OBAMA: ... too often, there are those in Washington who focus on the ups and downs of politics. But my concern is the ups and downs in the lives of the American people, the families feeling the pain of this recession, the folks I've met across this country who've lost jobs, savings and health insurance, but haven't lost hope. The men and women who still believe in the capacity, the ability of this nation to meet the challenges of our times.
Now, these are challenges you know all too well here in Wakarusa and in Elkhart County. This area's been hit with a perfect storm of economic troubles. Over the last few decades, you've borne the brunt of a steadily weakening of American manufacturing in the face of global competition. You felt the impact of the struggles of the American auto industry and the repercussions that have hit the Midwest especially hard. And you're living every day with the consequences of this recession and the financial meltdown, and you felt it in the form of lost jobs and lost savings.
So, as a result, the Elkhart area has experienced the second greatest increase in the rate of unemployment in the country: up 10 points in a year. It's an astonishing statistic. And there have been times when nearly 1 in 5 people in this area have been looking for work. You've seen factories close and your sons and daughters move away in searches of jobs and opportunity.
So, this is more than an economic crisis. This goes to the heart and soul of a community. It tests the strength of families and the spirit of good people, hardworking folks who have given their all to a company and now don't know where to turn. There's some who see what's taking place here and suggest it's all somehow inevitable and that the only way for America to get ahead is for places like Elkhart to be left behind. You hear that argument sometime in Washington.
But I know and you know that the truth is exactly the opposite. I'm here because I believe our ability to recover and to prosper as a nation depends on what happens in communities just like this one.
(APPLAUSE)
OBAMA: The battle for America's future will be fought and won in places like Elkhart and Detroit and Goshen and Pittsburgh, South Bend, Youngstown, in cities and towns across Indiana and across the Midwest and across the country that have been the backbone of America. It will be won by making places like Elkhart what they once were and can be again, and that's centers of innovation and entrepreneurship and ingenuity and opportunity. The bustling, whirring, humming engines of American prosperity. For, as the world grows more competitive, we can't afford to run the race at half strength or half speed.
If we hope to lead this century like we did the last century, we have to create the conditions and the opportunities for places like Elkhart to succeed. We have to harness the potential, the innovative and creative spirit that's waiting to be awakened all across America.
That's how we'll rebuild this economy stronger than before, strong enough to compete in the global economy, strong enough to avoid the cycles of boom and bust that have wreaked so much havoc on our economy, strong enough to support the jobs of the 21st century, and strong enough to unleash prosperity for everybody, not just some.
But before we can rebuild our economy for tomorrow, we have to rescue it today. That's why we passed a Recovery Act less than one month after I took office. And we did so without any of the earmarks or pork-barrel spending that's so common in Washington, D.C.
And let me just talk about the so-called stimulus package or the Recovery Act, because there's been a lot of misinformation out there about the Recovery Act. Let me tell you what it is and what it's not.
The plan was divided into three parts.
One-third of the money has gone to tax relief for families and small businesses.
One-third of the money is cutting people's taxes. For Americans struggling to pay rising bills with shrinking wages, we kept a campaign promise to put a middle-class tax cut in the pockets of 95 percent of working families, a tax cut...
(APPLAUSE)
... a tax cut that began showing up in paychecks of 4.8 million Indiana households about three months ago.
We also cut taxes for small businesses on the investments that they make, and more than 425 small businesses in Indiana have received SBA loans through the recovery package.
So that's one-third of the money was tax cuts.
Another third of the money in the Recovery Act has been for emergency relief that is helping folks who've borne the brunt of this recession.
For Americans who are laid off, we expanded unemployment benefits, and that's already made a difference for 12 million Americans, including 220,000 folks right here in Indiana. We're making health insurance 65 percent cheaper for families relying onCOBRA while looking for work. Some of you know people who lost their jobs were worried about losing their health care, couldn't afford COBRA, we were able to reduce their costs by 65 percent so they could keep their health care while they were looking for jobs.
And for states facing historic budget shortfalls, we provided assistance that has saved the jobs of tens of thousands of teachers and public -- and police officers and other public servants, so that you wouldn't see the recession get even worse.
So that's the second half -- the first half -- tax relief; second half, support for individuals, small businesses and states that had fallen on hard times.
The last third of the Recovery Act, and that's what we're going to talk about here today, is for investments that are not only putting people back to work in the short term, but laying a new foundation for growth and prosperity in the long run. These are the jobs building the future of America, upgrading our roads and our bridges, renovating schools and hospitals.
The Elkhart area has seen the benefits. Dozens were employed to resurface the runway at Elkhart Airport. A four-mile stretch of highway is being upgraded on U.S. 33. The Heart City Health Center has received recovery dollars to expand services and hire additional staff. And as part of the recovery plan, we're making an historic commitment to innovation.
The Recovery Act creates jobs, doubling our capacity to generate renewable energy, building a new Smart Grid that carry electricity from coast to coast, laying down broadband lines and high- speed -- high-speed rail lines and providing the largest boost in basic research in history to ensure that America leads in the breakthrough discoveries of the new century, just as we led in the last.
Because that's what we do best in America -- we turn ideas in inventions and inventions into industries.
And history should be our guide: The United States led the world's economies in the 20th century because we led the world in innovation.
Today, the competition is keener; the challenge is tougher. And that's why innovation is more important than ever. That's the key to good new jobs in the 21st century. That's how we will ensure a high quality of life for this generation and future generations.
With these investments, we're planting the seeds of progress for our country and good-paying, private-sector jobs for the American people.
So that's why I'm here today: To announce $2.4 billion in highly competitive grants to develop the next generation of fuel- efficient cars and trucks, powered by the next generation of battery technologies, all made right here in the U.S. of A.
(APPLAUSE)
Right here in America.
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Made in America.
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You know, for too long -- for too long, we've failed to invest in this kind of innovative work, even as countries like China and Japan were racing ahead. And that's why this announcement's so important. This represents the largest investment in this kind of technology in American history.
See, I'm committed to a strategy that ensures America leads in the design and the deployment of the next generation of clean- energy vehicles.
This is not just an investment to produce vehicles today; this is an investment in our capacity to develop new technologies tomorrow. This is about creating the infrastructure of innovation.
Indiana is the second-largest recipient of grant funding, and it's a perfect example of what this will mean.
You've got Purdue University, Notre Dame, Indiana University, and Ivy Tech, and they're all going to be receiving grant funding to develop degree and training programs for electric vehicles.
(APPLAUSE)
That's -- that's number one. We've got EnerDel, a small business in Indianapolis that will develop batteries for hybrid and electric vehicles.
You've got Allison Transmission in Indianapolis, Delphi in Kokomo, Remy in Pendleton, and Magna, located in Muncie, all who will help develop electric drive components for commercial and passenger vehicles.
And right here in Elkhart County, Navistar, which has taken over two Monaco Coach manufacturing facilities, will receive a $39 million grant to build 400...
(APPLAUSE)
... advanced battery-electric trucks with a range of 100 miles...
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... like (ph) the trucks there today, right there.
(APPLAUSE)
You know, just -- just a few months ago, folks thought that these factories might be closed for good. But now they're coming back to life.
AUDIENCE MEMBER: (OFF-MIKE)
OBAMA: You're welcome. Thank the American people.
(APPLAUSE)
The company estimates that this investment will help create or save hundreds of jobs in the area, and already folks like Herman (ph) are being rehired. So overall the companies believe these investments in battery technology will save or create thousands of Hoosier jobs.
And I want to point out, these thousands of jobs wouldn't be possible if it weren't for the leaders in Congress who supported the Recovery Act. Leaders like Evan Bayh and Joe Donnelly, who's here today, and Andre Carson and Brad Ellsworth and Peter Visclosky.
And these grants will create tens of thousands of jobs all across America. In fact, today, Vice President Biden is announcing grant winners in Michigan. Members of my cabinet are fanning out across the country announcing recipients elsewhere.
We're providing the incentives to those businesses, large and small, that stand ready to help us lead a new clean-energy economy by developing new technologies for new kinds of vehicles.
See, I don't want to just reduce our dependence on foreign oil and then end up being dependent on their foreign innovations. I don't want to have to import a hybrid car. I want to be able to build a hybrid car here.
(APPLAUSE)
I don't want to have to import a hybrid truck, I want to build a hybrid truck here.
(APPLAUSE)
I don't want to have to import a windmill from someplace else, I want to build a windmill right here in Indiana.
(APPLAUSE)
I want the cars of the future and the technologies that power them to be developed and deployed right here, in America. And that's just the beginning. In no area will innovation be more important than in the development of new ways to produce, use and save energy. So we're not only doubling our capacity to generate renewable energy and building a stronger and smarter electric grid, we've helped reach an agreement to raise fuel economy standards.
And for the first time in history, we passed a bill to create a system of clean-energy incentives which will help make renewable energy the profitable kind of energy in America, while helping to end our dependence on foreign oil and protect our planet for future generations.
The bill passed the House. We're now working to pass legislation through the Senate. Because we know that real innovation depends not on government, but on the generous potential of the American people.
If the American people get a clear set of rules, if they know what's needed, what challenges we've got to meet, they'll figure out how to do it.
In fact, that's why our budget makes the research and experimentation tax credit permanent. The R&D tax credit. This is a tax credit that helps companies afford what are sometimes very high costs in developing new ideas and new technologies and new products -- and that means new jobs.
This tax credit returns $2 to the economy for every $1 we spend. And for a long time, we were just trying to renew it once every year, and companies didn't know whether or not they were going to be able to get it for the next year.
That's changed. We've now made it permanent. I've also proposed reducing to zero the capital gains tax for investments in small or start-up businesses. Because small businesses are innovative businesses. Small businesses produce 13 times more patents per employee than large companies.
Of course, in order to lead in the global economy and ensure that our businesses can grow and innovate, we also have to pass health insurance reform that brings down costs.
(APPLAUSE)
Reform that brings down costs and provides more security for folks who have insurance and affordable options for those who don't.
I promise you, we will pass reform by the end of this year, because the American people need it.
(APPLAUSE)
The American people need some relief.
(APPLAUSE)
Now, we're going to have to make it happen. In fact, the recovery plan began the process of reform by modernizing our health care infrastructure. We took some long overdue steps of computerizing America's health records, which can reduce all the waste and errors that cost billions of dollars and thousands of lives, while protecting patients' privacy.
It's important also to note that these records hold the potential of offering patients the chance to be more active participants in the prevention and treatment of illnesses. You won't have to fill out the same form a dozen times.
You won't have to rely on your memory when talking to your doctor about medical history. All those things make people healthier, but they also reduce your costs, lower your premiums, and give you more security in your health care.
Now, in addition to energy and in addition to health care, we also know that the nation that out-educates us today will out- compete us tomorrow. So we're making a historic commitment to strengthening and improving education from cradle through career. Right now, our schools continue to trail many of our competitors, and that's why I've challenged states to dramatically improve achievement by raising standards and modernizing science labs, upgrading curriculum, forming new partnerships to promote math and science, and improving the use of technology in the classroom.
And I've set this goal: In the next decade, by 2020, America will once again have the highest proportion of college graduates in the world. We used to be number one. We will be number one again when it comes to college graduates.
(APPLAUSE) Now, to reach this goal, we've provided tax credits and grants to make college education more affordable. And we've made a historic commitment to community colleges, which are the unsung heroes in America's education system. America can and must have the best- educated, highest-skilled workforce in the world because if we're building new cars here in America, if we're building a new clean energy grid in America, then we're also going to need to build engineers in America and scientists in America and skilled technicians right here in America.
So all these pieces end up fitting together. Energy innovation, health care and education -- these are the pillars of the new foundation that we have to build. This how we won't just rescue the economy, but we're going to rebuild it stronger than before.
Now, there are a lot of people out there who are looking to defend the status quo.
There are those who want to seek political advantage. They want to oppose these efforts. Some of them caused the problems that we've got now in the first place, and then suddenly they're blaming other folks for it.
(APPLAUSE)
They don't want to be constructive.
They don't want to be constructive; they just want to get in the usual political fights, back and forth. And sometimes that's fed by all the cable chatter on the media.
But you and I know the truth. We know that, even in the hardest times, against the toughest odds, we have never surrendered. We don't give up. We don't surrender our fates to chance. We have always endured. We have worked hard, and we have fought for our future.
Our parents had to fight for their future. Our grandparents had to fight for their future. That's the tradition of America. This country wasn't built just by griping and complaining. It was built by hard work and taking risks.
(APPLAUSE)
And that's what we have to do today.
So I know these are tough times. If you haven't lost a job, you know somebody who has, maybe a family member, a neighbor, a friend. You know that, as difficult as the financial struggle can be, the sense of loss when you lose your job, it's about more than just a paycheck.
You know, we, as Americans, we define ourselves by the work we do. It's a source of pride, a sense that you're contributing, that you're supporting your family, that you're doing the right thing, that you're responsible. And the truth is, it can be easy to lose hope, especially when you see a lot of folks out there who failed to meet their responsibilities, from Wall Street to Washington.
Can be easy to grow cynical when you see politicians say one thing and then do another, or say one thing and then do nothing; when you've seen decades of broken promises and broken politics.
But this is a rare moment in which we're called upon to rise above the failures of the past. This is a chance to restore that spirit of optimism and opportunity which has always been central to our success.
We've got to set our sights higher, not lower. We've got to imagine a future in which new American cars are powered by new American innovation, a future in which cities that led the global economy before are leading it again, a brighter future for Elkhart, a brighter future for Indiana and for the United States of America.
(APPLAUSE)
That's what we're fighting for. That's what this plant's about. That's what you're about. That's what -- that's what we're going to achieve in the weeks and months to come.
So thank you very much, everybody. God bless you. God bless the United States of America. Thank you.
(APPLAUSE)
LEMON: President Barack Obama on the road in Wakarusa, Indiana, really selling his economic recovery plan, talking about energy, innovation, health care. He said and education would be the keys for the recovery of the economy.
He also talked about how health care's improved, talking about COBRA, when folks are between jobs. And really talking about -- he gave some -- talked about his critics as well, saying people who were opposed to this idea of his health care plan, they wanted to have the same old arguments, and he said the same old arguments that you hear out on the cable channels.
But President Barack Obama on the road today, trying to get the country behind his stimulus plan and saying that it is working. And the president taking a message there, saying grant money to an area hit hard by the recession is what he's going to get. I think he said it was $2.4 billion in grants that would help out Wakarusa, Indiana.
Now, he just wrapped up that speech there. Mr. Obama announced, again, that money, and he said that money was going to go to a new generation of electric cars and things like that, and a big chunk will go to Indiana and Michigan. And he said places like that are key -- are key -- to economic recovery.
Take a listen.
(BEGIN VIDEO CLIP) OBAMA: The battle for America's future will be fought and won in places like Elkhart and Detroit and Goshen and Pittsburgh, South Bend, Youngstown, in cities and towns across Indiana and across the Midwest and across the country that have been the backbone of America. It will be won by making places like Elkhart what they once were and can be again, and that's centers of innovation and entrepreneurship and ingenuity and opportunity.
(END VIDEO CLIP)
LEMON: That was the president speaking just moments ago. He also told the audience health care reform is essential to rebuilding our economy.
Another big story that we're covering here today on CNN, the release of two journalists, two American journalists, who had been captured inside Iran (sic). And just moments ago, the sister of Laura Ling -- Laura Ling was one of the young women who was there, one of the journalists who was held captive -- Laura Ling's husband and also her sister spoke out, Lisa Ling, spoke outside of the family's home in Los Angeles just a short time ago.
I want you listen to this.
(BEGIN VIDEOTAPE)
LISA LING, LAURA LING'S SISTER: Laura and Euna were actually fortunate that they were served meals on a regular basis. But she's anxious just to eat fresh food. And I know that there will be a sushi dinner at some point really soon.
QUESTION: Lisa, based on your experience in this business, do you think your sister used good judgment in going into North Korea?
LING: You know, I haven't really talked specifics about, you know, what actually happened that day. We know, as we've said, that -- and she will confirm that when they left U.S. soil, they never intended to cross the border.
You know, as journalists, when you're in the field, you know, you never know what is going to arise and things can be unpredictable. And whatever happened that day, I mean, she'll tell you when she's ready to talk about it. But based on the limited knowledge that I have, I don't think they used poor judgment.
QUESTION: Why not?
LING: Because I -- I'm going to let her tell the story because I think there's probably more that we don't know about.
QUESTION: Do you know, was the release set up before Bill got there? I mean, it all happened so fast.
LING: We don't know if it was actually orchestrated or not. We had a sense that the governments had agreed to send President Clinton, for which we were grateful. But in terms of whether a release was predetermined, we don't know.
QUESTION: (OFF-MIKE)
IAIN CLAYTON, LAURA LING'S HUSBAND: That's correct, yes. The last conversation with Laura, one of the things -- we are so proud of her. She just did an amazing job. And she said that, you know, it was her sense and her feeling that a visit from President Clinton would be successful in securing their release.
And, you know, what we did is obviously informed Vice President Gore and obviously the State Department of the nature of that call. And, you know, we're very, very grateful that, you know, they talked about it and others. You know, very happy that he went and was able to secure their release.
QUESTION: The experience was so harrowing. Are you guys just very proud of her as well? I mean, to go through something like this, your feeling, as you look at your sister, that she survived it?
LING: Proud would be an understatement. The little bit that she was able to recount about her experience over the last four and a half months has been challenging for us to hear. And through it all, she has really maintained a sense of strength.
And the way she was able to communicate to us by the phone of what she thought they needed to have happen was so incredible. I mean, my -- again, she's my little sister, but she's a very, very strong girl, a very determined person, and I'm just a very, very proud big sister.
QUESTION: Lisa, I know that you would never give up hope. (OFF- MIKE)
LING: You know, I actually have always maintained faith that she would come home at some point. I didn't know when it was going to happen. I didn't expect it, actually, this soon, but we are nonetheless just absolutely thrilled.
(END VIDEOTAPE)
LEMON: All right. That is Lisa Ling there standing outside the family's California home, and also Iain Clayton, who is Laura Ling's husband, Lisa Ling's brother-in-law.
And pardon me. Before we went into that, I said held inside Iran. They were held inside of North Korea. So pardon me for that.
But again, they are home safe. And there's been lots of questions of why former President Clinton was the person to get them out. We're going to talk about all of that today on CNN, but it certainly is good that they are home.
You heard the president talking just moments ago in Indiana about the economy, about health care. We have some new poll numbers out about President Obama's health care plan, and our senior political analyst, Mr. Bill Schneider, will join us to talk about that in just a moment.
(COMMERCIAL BREAK)
LEMON: Well, despite weeks of street protests, Iran's Mahmoud Ahmadinejad has been sworn in as the country's president. Now there are reports of hundreds more protesters flooding the streets with riot police at the ready there.
Our international correspondent, Reza Sayah, is at the Iran Desk with the very latest on the developments out of Tehran, really, and all of Iran -- Reza.
REZA SAYAH, CNN INTERNATIONAL CORRESPONDENT: Yes, Don. Whether you like him or not, Iranian President Mahmoud Ahmadinejad will serve a second term. It became official this morning in Tehran with a swearing-in ceremony before lawmakers in parliament.
And we can go to video of that ceremony, taking place 9:00 a.m. local time. There you see President Mahmoud Ahmadinejad next to the head of the judiciary. The president taking an oath and then calling the disputed June 12th vote an unprecedented epic.
A lot of empty seats during this ceremony. And this just into the Iran Desk. According to state TV in Iran, out of 70 members of the reformist faction of Majilis, only 13 lawmakers showed up.
Opposition leaders also missing. Among the opposition candidates, Mir Hossein Mousavi and Mehdi Karroubi, two former presidents, also no-shows. The president, in his speech, made an attempt to put the June 12th vote behind him and tried to unite the nation.
Here's what he said.
(BEGIN VIDEO CLIP)
MAHMOUD AHMADINEJAD, IRANIAN PRESIDENT (through translator): Who has voted for whom? This is not the question. Today we need a national will, a national resolve. We need to join forces.
(END VIDEO CLIP)
SAYAH: Despite that call for unity, it is unlikely, based on what we've seen from the opposition movement, that they will heed his call.
Also very interesting, a number of countries have yet to deliver congratulatory messages to the president. Among them, the U.S. and the U.K., France and Germany. Today in his speech, he said we don't need your congratulations -- Don.
LEMON: We know about this contentious election and what happened right after. What about now on the streets of Iran, Reza?
SAYAH: Right now, according to our sources, it is quiet. There were some demonstrations near the area of the parliament, but not in the large numbers we've seen in the past.
Hundreds of them, protesters, coming out, according to sources and witnesses. And there you see video coming into the Iran Desk. But they were outnumbered today, according to sources, by thousands of members of the Basij, the voluntary militia and security forces, who, in large part, were successful, according to witnesses, in dispersing them.
But make no mistake, this is an opposition movement that has been determined and persistent. Expect them to make a comeback in the streets. It's one of the many challenges this president faces.
Don.
LEMON: All right, Reza Sayah, manning our international desk today. We appreciate it. Thank you very much.
Let's turn now to domestic issues because a new poll today, it shows Americans divided over health care reform. Our senior political analyst, Mr. Bill Schneider, has been going over those numbers for us. He joins us from Washington today.
Bill, where does the public stand in this health care debate? You heard the president talk about it just moments ago.
WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: Well, you said it, divided. That's where they stood last month, and they're still divided. Take a look at when we asked people, do you support or do you favor or oppose the president's health care plan. Fifty percent favor, 45 percent oppose. It's a very close margin. More or less what it was last month. And still pretty closely matched. A statistical tie.
But members of Congress who are, of course, out in their constituencies, don't just pay attention to numbers. They pay attention to intensity of opinion. And there the opponents have a little bit of an advantage. What we found is that 33 percent of those who oppose the plan say they feel strongly about it. Only 23 percent of the supporters say they feel strongly. So intensity may favor the opposition.
LEMON: Yes. More passion on the opposition.
SCHNEIDER: Right.
LEMON: With the opposition. So then who is the crucial audience in this debate, Bill?
SCHNEIDER: You know, Don, I call them the satisfied majority. In our poll, we asked people, are you satisfied with the health care you're now receiving? And a very strong majority of Americans, 83 percent, said, yes, I'm satisfied with my health care. And almost three-quarters said they're satisfied with their health insurance.
Well, we combined those two questions and looked at how many people are actually satisfied with both. I call them the satisfied majority. Seventy-one percent of Americans say they're satisfied. Now, that's the target audience. Because if those people oppose the health care plan, it would be sunk.
Now, what we're finding is that 50 percent of those satisfied majority do oppose the health care plan, 44 percent support it. So it's getting a lot of support. Those people are still persuadable, even though they're happy with what they've got.
LEMON: Yes, and, you know, a lot of people are not -- they want it. They're not engaged or don't know, you know, what's in this health care reform specifically. But do you know if Americans expect to benefit from health care reform? What are they saying about that?
SCHNEIDER: Well, we asked them, do you think this plan will benefit you and your family, will it benefit others, or will it help really nobody at all? Here's the answer. Only 30 percent, just fewer than a third of Americans, say it's going to help me and my family. A larger number, 44 percent, say it's going to help others, but probably not my family. Only 20 percent say it's not going to help anybody at all.
Now, those figures explain the opposition to the health care plan because a lot of Americans are saying, what's in it for me and only 30 percent say it's going to help me. But it also helps explain the support for the plan. Namely that it's going to help a lot of Americans, maybe not me. So a lot of Americans support it. They think it's important. It's going to help people without insurance. People who can't meet the costs. But the crucial question for them is, OK, it will help other people, but who's going to pay for it.
LEMON: Yes, always a question, who's going to pay for it. Bill Schneider, we appreciate it.
The president has health care on his agenda. The economy as well. Now is your time to grade him for the second 100 days. And you can cast your vote now at cnn.com/reportcard and then you get the results from CNN's "National Report Card" from the best political team on television, Bill Schneider is one of them, tomorrow night, 8:00 p.m. Eastern only here on CNN.
A trip to the gym turns into a nightmare. We'll have the very latest on a Pennsylvania killing spree. New developments.
(COMMERCIAL BREAK)
LEMON: This next story really makes you realize and appreciate the importance of family and loved ones. An emotion-filled homecoming after four and a half months in the hands of North Korean -- the regime there. Well, journalists Laura Ling and Euna Lee returned to the United States today. Lee collapsed in tears when she saw her four-year-old daughter, Hannah, at the Los Angeles area airport. And the women's release here secured just hours earlier in talks between former President Bill Clinton and North Korean Leader Kim Jong-il.
Well, Ling described the moment she and Lee realized that, boy, they were about to go home. Take a listen. (BEGIN VIDEO CLIP)
LAURA LING, JOURNALIST FREED BY NORTH KOREA: Thirty hours ago, Euna Lee and I were prisoners in North Korea. We feared that at any moment we could be sent to a hard labor camp. And then suddenly we were told that we were going to a meeting. We were taken to a location, and when we walked in through the doors, we saw standing before us President Bill Clinton.
(END VIDEO CLIP)
LEMON: Well, the White House says President Barack Obama called former president Bill Clinton after his plane landed to congratulate him on a job well done. Mr. Obama spoke to reporters as he was leaving the White House this morning.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: What you've all seen on television I think is a source of happiness, not only for the families, but for the entire country. I want to thank President Bill Clinton. I had a chance to talk to him for the extraordinary humanitarian effort that resulted in the release of the two journalists. I want to thank Vice President Al Gore, who worked tirelessly in order to achieve a positive outcome.
(END VIDEO CLIP)
LEMON: All right. So how did this all go down? There he was, at the table with Kim Jong-Il and back on the world stage. Again, Bill Clinton did not speak when he arrived with the freed American journalists today, but offered this written statement. Here's what he says. He says, "I am very happy at after this long ordeal, Laura Ling and Euna Lee are now home and reunited with their loved ones."
It was a convoluted and unlikely set of events that brought the former president to Pyongyang. Here's CNN's Tom Foreman to explain.
(BEGIN VIDEOTAPE)
TOM FOREMAN, CNN CORRESPONDENT (voice-over): Officially, it was all unofficial. But when a former president and spouse of the current secretary of state comes calling, the official overtones are unmistakable, and that is why Kim Jong-il was smiling, according to Jack Pritchard, a former special U.S. envoy to the region and now head of the Korea Economic Institute.
JACK PRITCHARD, KOREA ECONOMIC INSTITUTE: As you know for the last year, Kim Jong-il has been plagued by health problems. There's been speculations that he's not going to survive very long.
FOREMAN (on camera): So a visit like this makes him look strong.
PRITCHARD: It makes him look strong. He looks healthy. He looks happy in that picture. It puts to rest a lot of the speculation, both internal and externally, about his health and his command of authority in North Korea.
FOREMAN: So how was the deal done? First, through Sweden. The United States has no formal relations with North Korea, but Sweden does. The Swedish ambassador in Pyongyang, Max Foyer, has been there since 2005. And he saw the captives repeatedly, keeping backdoor communications flowing there and at the United Nations in New York. By all accounts, the State Department worked tirelessly through those channels. The White House has not disclosed details.
ROBERT GIBBS, WHITE HOUSE PRESS SECRETARY: This, obviously, is a very sensitive topic.
FOREMAN: But foreign affairs analysts believe the private talks drove public positions, the second key. For example, Secretary Clinton initially suggested the charges against the pair were baseless.
PRITCHARD: And Secretary Clinton indicated this was somewhat of a sham trial and she disparaged the North Koreans' legal system. The North Koreans were furious over that.
FOREMAN: Then suddenly last month, a much more conciliatory tone.
HILLARY CLINTON, SECRETARY OF STATE: The two journalists and their families have expressed great remorse for this incident. And I think everyone is very sorry that it happened.
FOREMAN: The third key, when the Obama administration responded to North Korea's latest missile test by pressing for sharper international sanctions, Pritchard says Kim Jong-il need to turn down the heat.
PRITCHARD: And this is a way, in a very face-saving way, for them to recalibrate their relationship with the United States.
FOREMAN: And the final key, Bill Clinton himself.
FOREMAN (on camera): Kim Jong-Il had wanted then President Clinton to visit North Korea back in 2000. It did not happen, but analysts say he never gave up on the idea. And in the end, that's what sealed the deal, a visit from about the biggest unofficial official America could send.
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LEMON: All right, Tom Foreman. Tom, thank you for that.
And that wasn't the end of it because the U.S. ambassador to the U.N. under George W. Bush was offering some blistering criticism of the White House and the Clinton mission. John Bolton writes in "The Washington Post," "it seems the Obama administration not only chose to negotiate with terrorists, but sent a former president to do so." Others disagree with that.
(BEGIN VIDEO CLIP) WILLIAM COHEN, FORMER DEFENSE SECRETARY: We think that there are some real opportunities here. We've seen the North Koreans make a gesture. They were the ones who wanted this deal to come about. They wanted President Clinton to give them high visibility for their own purposes. And the Obama administration wanted to make sure that it had enough separation between the person they were sending over and the administration so that its critics could not claim that for negotiating the release of these two people, we had compromised our very strong position of no negotiating with the North Koreans under the circumstances.
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LEMON: And that was William Cohen, of course, who served as defense secretary under President Bill Clinton.
Do you think Bolton's remarks are on the mark? Do you think his words are over the top? Let us know if you agree or you disagree and why. Make sure you log on to the CNN NEWSROOM blog. The address is cnnnewsroom.com/newsroom. And today you can click on Tony or Don and you'll get the same stories. But everything is there. Click on all of my colleagues, Kyra, T.J., Fred, all of us right here in the CNN NEWSROOM blog. Don't forget Heidi. Everyone.
A shooting spree at a workout gym. We'll have the latest on the suspect for you. New information.
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LEMON: This is a truly horrific story, but we're going to take you inside of it to try to help you understand and piece together what went on. A man opens fire inside an aerobics class and leaves behind clues painting the picture of an angry, lonely man. Police say the gunman killed three women and injured 10 others before killing himself. Witnesses describe this horrible scene.
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UNIDENTIFIED MALE: I was right beside the room where it all took place. I seen everybody running. I took off my headphones at that moment and I kept hearing shot after shot repeatedly. And that's when I realized it was a gun going off.
UNIDENTIFIED MALE: Everybody started running in the gym, bleeding. And we hit the door. And a lady was shot in the leg. A lady was shot in the shoulder. We started picking her up and dragging her out.
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LEMON: Well, CNN's national correspondent, Susan Candiotti, has been following this story very closely. She's investigating here on the possible motive. And there is some new information that we're learning about the suspect.
What -- why did he do this, Susan? SUSAN CANDIOTTI, CNN CORRESPONDENT: Well, that's the question, isn't it? We're trying to find out right now what made this man tick. Now, so far police are not officially even using his name, but a law enforcement source tells me his name is George Sodini, 48 years old. He's belonged to the gym for some time. We don't know exactly how long.
But we have also discovered that he's been keeping a blog on the Internet. And the date on it goes back to November of 2008. But we're not quite sure whether he's been posting things steadily on there or whether he dumped them all in a day and a half ago, right before this alleged -- this attack occurred.
We know from the blog he says that he has never been married, that he's had trouble with women. In fact, he denigrates them in his language on this blog. He talks about appearing normal on the outside, but acknowledges being very troubled on the inside. And he also, in this blog, appears to have been planning this attack over the course of several months. In fact, may even have postponed it at one time.
So we have an excerpt from that for you, Don, to read from it. And this is -- this was posted on Monday of this week as he was getting ready apparently to carry this out. And he says, "I need to work out every detail. There is only one shot. Last time I tried this, in January, I chickened out. Let's see how this new approach works. Maybe soon I will see God and Jesus. Also," he writes, "any of the 'Practice Papers' left on my coffee table I used or the notes in my gym bag can be published freely. I will not be embarrassed because, well, I will be dead." Those are his words.
Now, we do know that he left a note in the gym bag. The police have said that. They won't describe what's in it. However, a law enforcement source, he told me that in it he talked of his hatred of women.
Don.
LEMON: He tried it before but chickened out. Clearly someone who is disturbed if this writing did indeed come from him. Susan Candiotti, we appreciate that update. Thank you very much for that. We'll get back to Susan and an update on that story and others as well.
Meantime, a massive cleanup is taking place right now in Louisville, Kentucky, after flash flooding swamped that city. Take a look at these pictures. Take a close look. You can see, right there, those are cars. They are under water and buildings are flooded as well. Thousands are without power there. And a half a foot of rain fell in just a couple of hours.
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UNIDENTIFIED MALE: I woke up and my mom's yelling that it's flooding, you know, dad. And my sisters are crying and stuff. And my basement is two feet from the ceiling -- the flood got up to two feet from the ceiling.
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LEMON: A half a foot of rain in just a couple of hours. Where does all that water go? Where's it now? Our meteorologist, Chad Myers, standing by to update us on that and all the rest of the weather.
Where does all that water go? Is it gone now?
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LEMON: You know what, all week our chief medical correspondent, Dr. Sanjay Gupta, he has been taking your questions about health care reform. And today's question is one you have seen a lot here. It's about dental insurance. Mike from Connecticut says, "I've heard dental insurance will not be covered under the new health insurance exchange. Seems like we have to wait for a tooth to become life threatening before it's considered health care. Why is my mouth not considered part of my health?"
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Well, I'll tell you, this is one of the most commonly asked questions that we get when talking about health care reform. Specifically asking about dental coverage. And there's a stat that I think is worth keeping in mind. For every one person without health care insurance, there's about two without dental insurance. Over 100 million people that don't have any dental insurance whatsoever.
To answer to your question, Mike, is sort of yes and no. Depending on whether you're a kid or an adult. Take a look there. For children under the age of 21, 21 years old and under, it's going to cover oral health care overall. The basic plan does. For adults, really not, unless you have premium care. You buy extra and you can get included -- you can get an adult oral health care plan. You have to use commissioner approved providers. And we don't know how much it's going to cost overall to actually get that premium plan.
Now, a couple things to keep in mind. Medicare, the way it stands now, doesn't have dental coverage. Medicaid does on a state- by-state basis. So it depends on which state in which you live. But what we found when we really dug down deep on this is that even though it's provided in some states, only about 37 percent of children, just more than a third of children, actually access the dental care. In part because they can't find dentists who will accept their insurance.
So, as a lot of this moves forward, as you are paying attention to health reform, pay attention to this issue as well. If the insurance is provided, can you provide -- can you find providers who will actually accept that insurance?
You know, one thing I should point out is we don't talk about dental care probably enough. If you talk about inflammation in your mouth and it's chronic, it's sort of like living with a chronic low- grade infection in your body. And inflammation we now know is linked to lots of things, heart disease, diabetes, all kind of blood vessel diseases. So, this is something you really need to pay attention to. And people need to try and get dental care, especially starting at a very young age.
We'll have much more on this in the days to come. Back to you for now.
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LEMON: It seems kind of odd to be talking about Christmas in August, but in London, Christmas comes early. One of its famed stores has already opened its holiday shop hoping to cash in on summer tourists. Here's CNN's Jim Boulden.
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JIM BOULDEN, CNN CORRESPONDENT (voice-over): From a $3 ornament, to a $4,000 tree, consumers can start their Christmas shopping at Harrods already. The store has 2,000 product lines in its Christmas shop.
KATHARINE WITTY, HARRODS: This year it will be interesting to see the trade and see how many people do come into the store early, because we are in a recession. There is a credit crunch on. And it may be that people want to plan their Christmas in stages. They don't want to just wait until November and December and then have a huge hit on their finances.
BOULDEN (on camera): And it's not just Harrods. Here in the U.K. and in the U.S., Christmas catalogs have already started to arrive.
BOULDEN (voice-over): If you type "Christmas" in to sears.com now, you get more than 4,000 items. Sears and also Toys R Us launched a Christmas in July campaign, partly in response to June U.S. department store sales, which were down 9 percent from the previous June. So, will consumers waddle into shops in bigger numbers in Europe, and will it be a happy holiday for retailers?
ROBERT CLARK, RETAIL KNOWLEDGE: I think it could be better because I think that retail sales have actually held up better than I expected, I must say. And I think that the fact is that consumers have more disposal income because their mortgage repayments, which are so important here, have gone down. So I think they may well have a sort of splurge in the run-up to Christmas.
BOULDEN: These shoppers say . . .
UNIDENTIFIED FEMALE: I just got a new job and so I didn't have any money before and now I will have money to buy presents for my parents.
UNIDENTIFIED MALE: Everyone's going to get a lot fewer presents.
UNIDENTIFIED FEMALE: The recession will affect my Christmas and how guilty I feel towards the presents I get.
BOULDEN: How many of us will feel guilty and how many retailers will feel relieved when the 2009 snowfall really comes around?
Jim Boulden, CNN, London.
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LEMON: Snow in August.
The CNN NEWSROOM continues right now with Kyra Phillips.
