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Some Sectors of Economy Still Hiring; Cash for Clunkers Fueling Car Sales; Unemployment Rate Drops Slightly; CDC Makes Recommendations for Returning Students; Trying to Restore Dignity to Burr Oaks Cemetery; What Unemployment Numbers Mean For the White House; Town Halls Turn Violent
Aired August 07, 2009 - 12:59 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BETTY NGUYEN, CNN ANCHOR: The CNN NEWSROOM continues right now with Fredricka Whitfield in for Kyra Phillips.
FREDRICKA WHITFIELD, CNN ANCHOR: All right. Thanks so much, Betty.
Unemployment down. Layoffs down. Economy, looking up? We're pushing forward on bombshell reports from the labor front. More signs the recession is losing its grip.
Tempers, voices, blood pressures, spiking in the fight over health care. We'll shed some light on a fevered debate.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: We have to prepare for the worst. The honest answer is we don't know how bad this is going to be.
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WHITFIELD: Swine flu in the schools. The feds provide a lesson plan for educators bracing for an H1N1 onslaught.
Hello, everyone, I'm Fredricka Whitfield, in today for Kyra Phillips, live at the CNN world headquarters in Atlanta. And you're in the CNN NEWSROOM.
Issue number one, on day 200 of the Obama administration, the president is due to speak in the White House Rose Garden later on this hour on an economy that is still very weak but showing new signs of life. We'll get to those in a second.
And earlier, he signed a $2 billion lifeline for the cash for clunker program, which should keep it up and running until Labor Day. His public comments are scheduled for 1:30 Eastern Time, and you'll hear them live, right here in the CNN NEWSROOM.
All right, analysts have said unemployment would keep going up, and layoffs in July would top 300,000. Instead, employers cut 247,000 jobs, the fewest since last August. And the jobless rate fell from 9.5 percent to 9.4 percent. The rate hadn't dropped since April of last year.
The U.S. Labor Department says this decline is due in part to job seekers giving up and dropping out of the labor force.
So, even though the unemployment rate is down, there are still more than 14 million people out of work. That's roughly the population of Tennessee and New Jersey combined. But the good news is, there are jobs out there. Felicia Taylor is at the New York Stock Exchange with more on that.
Felicia, which sectors are hiring exactly?
FELICIA TAYLOR, CNN CORRESPONDENT: Well, there are a few, thank goodness, Fredricka. The education sector is one of the top sectors that are actually hiring people. You know, people going back to school now.
And as you mentioned, with that number, that unemployment rate, dropping to 9.4 percent, you might think that the -- was a good sign, but hidden in that are people that might have retired, that have quit looking for work and those that have gone back to school. So, that might account for why there are some education jobs.
Also, health care and leisure and hospitality. Think about hotels recreation areas and restaurants evidently ramping up their employment rolls. And government. Thanks to President Obama's stimulus spending, the government has added about 7,000 jobs.
Here's the surprise, though: we had jobs increase in the auto sector. They added jobs in July, about 28,000 of them, thanks to GM and Chrysler, which exited bankruptcy so quickly.
So, if you think about it, the previous cuts, though, in the auto sector were so deep -- and this is not funny -- there were actually fewer people to lay off during the normal seasonal shutdown period, which takes place in July.
So, for those people who are employed, good for you. The workweek got a little bit longer. Employers increased hours worked to an average of about 31 -- 33.1 hours. That actually hit a record low in June. So we're moving up on those levels. And employers actually cut hours, asking people to work a shorter week in order to keep them on the payroll.
Wages increased, not by a lot, but by about three cents an hour, to an average of $18.56. So, that's pretty good.
WHITFIELD: Not bad at all. All right, well, let's talk if we're looking for work, what states do we need to focus on?
TAYLOR: OK. It's actually a little bit more widespread than you might actually have thought. Most areas of the country are seeing improvement in the labor market. You can take a look at this -- this map that we've got for you.
The dark and light-blue areas are those areas where we're seeing most employment pick up. Those have the most number of jobs per 1,000 residents. So take a look at where we now see the darkest blue and the lighter-blue areas. The residents who are living where there's more of the orange and gray area, they have the fewest jobs to account for.
Look south to Texas. Health care and the oil-and-gas industries are the growth areas down there. Don't forget: they got about $18 billion in federal stimulus money.
So, then let's move out west to Arizona. That state is benefiting from federal stimulus money, as well. They were among the first to get funding for energy projects. Also adding jobs in mining, construction, and the financial sectors.
So, also then move down to southeast in Florida. There's demand there for greater health care, which we've obviously seen an aging population, and in the insurance arena. We know Florida, no jokes here, it is a retirement hot spot.
And then we've got some other states including Colorado, where we've seen alternative energy, education and technology.
So, there are areas of growth in the employment sectors throughout the United States. And, frankly, Wall Street likes what it's seeing so far. The Dow right now is up about 153 points and has held onto its gains throughout the afternoon.
WHITFIELD: All right, encouraging news right there. Thanks so much. Felicia, good to see you.
TAYLOR: Nice to see you.
WHITFIELD: All right. A day after the Senate passed it, President Obama signed off on a bill extending cash for clunkers. The rebate program began July 24th with $1 billion in the tank. About a week later, all gone, as people pushed, pulled, or dragged their older cars to the dealers.
The Department of Transportation says it has recorded almost 185,000 sales so far. And the White House expects today's $2 billion refill to last at least until Labor Day.
So, what does this extra couple billion mean for the people buying and selling the cars? We're checking back in with Earl Stewart. You remember him; he's a Toyota dealer in Florida, who is selling a lot of cars under this program.
Good to see you.
Also, he's joined by CNN personal finance editor Gerri Willis in New York, who has some advice for consumers.
So Earl, let me begin with you. You enjoyed the last month of huge sales, really exceeding your 2008 sales. And now that there's additional money in the tank of this cash for clunkers, what do you expect this next month to be like?
EARL STEWART, OWNER, EARL STEWART TOYOTA: Well, Fredricka, it started out like a -- we couldn't believe. We had a showroom full of people this morning. I thought there might be a little slump, because people were rushing in, in anticipation of the Senate perhaps not passing. But with the new $2 billion, we're still extremely busy.
Our August is off to a record. We have sold about 50 percent of the cars that we would normally sell in the month of August in the first six days.
WHITFIELD: Interesting. So, people are ready to buy. They lined up as early as this morning. Not necessarily just to look, but they're qualifying. They have the cash, or money, in hand to actually get a new vehicle?
STEWART: Yes. Fredricka, one of the most surprising things about this whole program to me was so many people with the clunkers, with the older, low-priced cars that have good credit. There are a lot of cash buyers, too, so we're having almost every clunker prospect, people that come in, qualified to buy, either pay cash or be able to get the financing.
WHITFIELD: Now, initially, you were a bit skeptical about this program, weren't you?
STEWART: Well, that's exactly the reason why. You know, a person driving a $1,000 or a $600 car, you wonder how good their credit is. Why are they driving that car? Turned out these were second and third cars, sometimes cars that had been given to grandchildren or children, which are still in their name.
Now they can take the car back from the grandchild and trade it in for a brand-new car for the grandchild.
WHITFIELD: And what do you expect this month to be like? Until Labor Day, possibly the money, the $2 billion extra, will allow folks to take advantage of the opportunity over the next four weeks. Are you afraid that the money might run out, that you just might be inundated with too many customers?
STEWART: I'm afraid of that. I -- the pace started out so fast, it's too soon to say. But if it continues at the pace we've seen so far today, it definitely won't last until Labor Day. It will be out well before that. Because we're -- we're exceeding the pace we did when the program first started.
WHITFIELD: OK.
Gerri, let me bring you in to the equation here. So, there are some unintended risks here, right? I mean, we just heard, you know, that initially he was a little concerned that a lot of people may not be able to qualify, but, in fact, many of these customers could qualify. So, what are the other risks?
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Well, I have to tell you, it is all about the money. And that's what I'm focusing on.
Look, cash for clunkers can give you a nice boost if you're looking to get a more efficient car, but no matter what the incentive is, you really have to make sure you can afford that new car in the first place.
Let me just show you a little example here. If you buy a car, average price on the car about $26,000. Let's say you get the most you can from the government, $4,500. That reduces your cost to 21,500 bucks. If you finance it over four years, you pay 7 percent interest, your monthly amount is $514 just for the car. And so, you've got to be able to make sure you can afford it. That it's something that you can really take advantage of.
Remember, you know, cars aren't like houses. They don't increase in value over time. They get into accidents. You don't know for sure if it will be around another 20 years. Unlikely that it would. It's a product that's constantly losing value.
So the idea here, don't overextend yourself; make sure you can afford that.
And I'm sure, as Earl said, there are people out there who can take advantage of it. But there also those who might be involved in this program now who, you know, maybe they shouldn't be extending themselves right now.
WHITFIELD: So perhaps you have some advice for folks who are anxious to hit the dealerships this weekend. What questions do they need to ask? What should their expectations be?
WILLIS: Well, you know, No. 1, don't buy a car that's not within your budget limitations. Let's face it, $26,000 is a whole lot of money. You can get a Honda Fit for about half the cost.
And don't forget to negotiate with the dealer. You know, last time Earl and I were speaking together on this, he said, "Yes, yes, negotiate." Well, just because you're getting incentives from the government, that's no reason to think you still can't haggle on price.
And make sure you look at the dealerships that are offering incentives on top of what Uncle Sam is offering, because there are a lot of them doing that, too -- Fredricka.
WHITFIELD: All right, Gerri. Thanks so much. Earl, before I let you go...
WILLIS: My pleasure.
WILLIS: ... what, perhaps, are the questions that some of the customers are asking you? And are they negotiating?
STEWART: Yes. They're negotiating, but let me say, I agree with the former comments there. Because I don't think they're negotiating hard enough. They should be at least three competitive bids on the car.
One thing I recommend that they do IS keep the clunker out of the equation. Don't tell them about the clunker trade-in. When a dealer sees that $4,500, it's like dollar signs to him; it's profit. Negotiate for the car just as if you weren't going to trade in a vehicle, and then when you get the best price, after getting three competitive bids, then spring the clunker on him, and say, "OK, here's my qualified clunker. Take another $4,500 off the price you gave me."
WHITFIELD: Fantastic. Earl, you're looking out for your customers, who are going to be inundating you this weekend. That's great advice.
WILLIS: Are we going to do this?
WHITFIELD: I appreciate it.
Earl Stewart, Gerri Willis, thanks so much to both of you. Appreciate that.
STEWART: Thank you.
WHITFIELD: And perhaps you still have some questions about cars for clunkers or maybe even health care or the economy overall. We're going to the White House for answers later on this hour. Send us your questions at MailToTheChief@CNN.com or tweet us at KyraCNN.
The vice president's chief economic adviser, Jared Bernstein, will be here later on this hour to answer a lot of your questions.
Grassroots gripes over health care and what Washington may or may not do to fix it. It's a make-or-break month for reform.
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WHITFIELD: Lots of room at the South Carolina governor's mansion. Why the first lady is packing up and moving out.
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WHITFIELD: All right. There's suddenly a lot more room in the South Carolina governor's mansion. The wife of philandering Governor Mark Sanford is moving out, and she's taking the couple's four sons with her for the school year.
First lady Jenny Sanford says she's moving to a family home about 120 miles away from the state capital but will continue to work on her marriage.
Back in June, the governor admitted to having an affair with an Argentinean woman he called his soul mate.
Florida Republican Senator Mel Martinez is resigning, more than a year early. He sent a note to supporters today, telling them he's quitting once a replacement is named. Martinez had already said that he would not seek re-election next year.
So, who will fill the seat? Not Governor Charlie Crist. Crist is a leading candidate for the job in 2010, but he says he will not appoint himself to replace Martinez. (BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: (INAUDIBLE)
UNIDENTIFIED FEMALE: Get off of me!
UNIDENTIFIED MALE: Everybody back up.
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WHITFIELD: Missouri, Florida, Michigan, Texas, town hall free- for-alls, as the health-care debate spills out of Washington and into the heartland.
Lawmakers knew this would likely be a make-or-break month for reform. Most didn't expect the constituent confrontations like this that are flaring up everywhere. Democrats say the clashes are being orchestrated by conservative groups, and now big labor is fighting back. Much more on that in our next hour.
All right. First, though, shouting to be heard, shoving to be seen at a lawmakers' forum in Tampa, Florida. Reporter Bo Zimmer of CNN affiliate WTSP was in the thick of it.
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BO ZIMMER, WTSP REPORTER (voice-over): Hundreds lined up, and at 6 p.m. it started off as a town-hall meeting about an important issue.
UNIDENTIFIED FEMALE: When it comes to your health care...
ZIMMER: But before Congresswoman Kathy Castor could even begin getting through opening remarks, the protests began.
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WHITFIELD: All right, we want to take you straight to the Rose Garden. President Obama. Let's listen in.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: ... put Americans back to work and build a new foundation for growth.
Last week we received a report on America's gross domestic product, a key measure of our economic health. And it showed marked improvement over the last few months.
This morning we received additional signs that the worst may be behind us. Though we lost 247,000 jobs in July, that was nearly 200,000 fewer jobs lost than in June, and far fewer than the nearly 700,000 jobs a month that we were losing at the beginning of the year.
Today, we're pointed in the right direction. We're losing jobs at less than half the rate we were when I took office. We pulled the financial system back from the brink, and a rising market is restoring value to those 401(k)s that are the foundation of a secure retirement. We've enabled families to reduce the payments on their mortgages, making their homes more affordable, and reducing the number of foreclosures. We helped revive the credit markets and opened up loans for families and small businesses.
While we've rescued our economy from catastrophe, we've also begun to build a new foundation for growth. That's why we passed an unprecedented recovery act less than a month after I took office. And we did so without any of the earmarks or pork-barrel spending that's so common in Washington.
Now, there's a lot of misinformation about the recovery act, so let me repeat what it is and what it is not. The plan's divided into three parts. One-third of the money is for tax relief that's going directly to families and small businesses.
For Americans struggling to pay rising bills with shrinking wages, we kept a campaign promise to put a middle-class tax cut in the pocket of 95 percent of working families, a tax cut that began showing up in paychecks about four months ago. We also cut taxes for small businesses on the investments they make and substantially increased loans through the Small Business Administration.
Another third of the money in the recovery act is for emergency relief that is helping folks who have borne the brunt of this recession. For Americans who were laid off, we expanded unemployment benefits, a measure that's already made a difference in the lives of 12 million Americans.
We're making health insurance 65 percent cheaper for families that rely on COBRA while they're looking for work.
And for states facing historic budget shortfalls, we provided assistance to save jobs of tens of thousands of teachers and police officers and other public-service workers.
So, these two-thirds of the recovery act have helped people weather the worst phase of this recession while saving jobs and stabilizing our economy. The last third is dedicated to the vital investments that are putting people back to work today to create a stronger economy tomorrow.
Part of that is the largest new investment of infrastructure in America since Eisenhower built the interstate highway system back in the 1950s. These are jobs rebuilding America: upgrading roads and bridges, renovating schools and hospitals.
Now, as we begin to put an end to this recession, we have to consider what comes next, because we can't afford to return to an economy based on inflated profits and maxed-out credit cards, an economy where we depend on dirty and outdated sources of energy, an economy where we're burdened by soaring health-care costs that serve only the special interests. This won't create sustainable growth. It won't shrink our deficit, and it won't create jobs.
And that's why we've put an end to the status quo that got us into this crisis. We cannot turn back to the failed policies of the past; nor can we stand still. Now's the time to build a new foundation for a stronger, more productive economy that creates the jobs of the future.
This foundation has to be supported by several pillars to our economy. We need a historic commitment to education so that America's the most highly educated, well-trained workforce in the world. We need health-insurance reform that brings down costs, provides more security for folks who have insurance and affordable options for those who don't. And we need to provide incentives that will create new, clean-energy sources for our industries. That's where the jobs of the future are. That is the competition that will shape the 21st century, and that's a race that America must win.
So, we have a lot further to go. As far as I'm concerned, we will not have a true recovery as long as we're losing jobs, and we won't rest until every American that is looking for work can find a job.
I have no doubt that we can make these changes. It won't be easy, though. Change is hard, especially in Washington. We have a steep mountain to climb, and we started in a very deep valley. But I have faith in the American people, and their capacity for hard work and innovation, and their commitment to one another, and their courage to face adversity.
We've seen already that strength of character over the course of this recession. Across the country people have persevered, even as bills have piled up and work's been hard to come by. Everywhere I go, I meet Americans who have kept their confidence in their country and in our future. That's how we've pulled the economy back from the brink. That's why we're turning this economy around.
I am convinced that we can see a light at the end of the tunnel, but now we're going to have to move forward with confidence and conviction to reach the promise of a new day. Thank you very much.
WHITFIELD: All right. No questions there being taken by President Obama there in response to a slight dip in the unemployment rate. He's saying the worst may be behind us, talking about overall the economy, and he said the indicators, including today's drop in the unemployment rate, all point in the right direction.
He said, quote, "We're turning this economy around and do see light at the end of the tunnel."
So, again, President Obama there on the Rose Garden, about 30 minutes earlier than previously anticipated, but his message very short and sweet in response to the unemployment rate taking a very tiny dip. And you see there, the Dow is up 157 points, as well. It was so just before he spoke.
We'll have much more straight ahead in the NEWSROOM.
(COMMERCIAL BREAK) WHITFIELD: It seems pretty basic: wash your hands and cover your mouth when you sneeze! So, we've all heard those personal guidelines for avoiding the swine flu and just about everything else, but back- to-school time is right around the corner, and some campuses are still reeling from the outbreak last spring. So, top health and education officials are meeting in Washington today, rolling out the strategy to keep students and teachers healthy.
CNN's senior medical correspondent, Elizabeth Cohen, joining me now.
So, what's the update?
ELIZABETH COHEN, CNN CORRESPONDENT: Well, last spring, some 700 schools closed, all around the country. And you know what? You might not see this -- that this fall.
In the spring the CDC was much more likely to encourage schools to close down when they had students with H1N1, also known as swine flu. But, the CDC had a press conference today, where they said the emphasis is more on keeping schools open. They're going to leave it to the schools to decide when they should close, which means some schools will and some schools won't when they have a lot of children with swine flu. So, schools will make that decision.
And also the CDC says that students and teachers can return to school if they've had swine flu, as long as it's 24 hours after the fever ends. They need to have been fever-free for 24 hours.
Also, the CDC is encouraging schools to teach good hand-washing habits and respiratory etiquette. So I'll show you what respiratory etiquette is. If I were to sneeze or cough right now, I should turn away from you and do it into my sleeve.
WHITFIELD: Yes, not the hand.
COHEN: Not my hand. Because then I'll shake your hand and whatever (ph). Into my sleeve.
WHITFIELD: Right. Right. OK, so you mentioned the 24-hour fever gone. Does that mean you're no longer contagious?
COHEN: You know what? It doesn't. And that's sort of an interesting point. And some infectious disease experts I talked to were feeling a little bit unsure about this.
You can still shed the virus, which means you're still contagious, for ten days after your fever ends. So a child could return to school and still be contagious, even if they follow these CDC rules.
So it will be interesting to see how it plays out over the fall, because if you -- if you're only telling people to wait a day after the fever, that kid can still be contagious.
WHITFIELD: Yes, and of course, fall, winter comes. That means people start thinking about vaccinations. When do you know you're a candidate, perfect candidate, for such?
COHEN: Right. Well, first they have to have a swine flu vaccine, and it's on their way. They're testing it now. And federal officials hope that it will be on the scene in the middle of October.
Now, not everyone will be able to get it when it first comes out. There is a priority list. So, let's take a look at the people who are supposed to be at the head of the line for the swine-flu vaccine: pregnant women; everyone ages 6 months to 24 years; and parents of babies under the age of 6 months, and their caregivers, too. Also emergency and health-care workers, and 25- to 64-year-olds who have underlying health problems, such as asthma. Those are the folks who are supposed to be first in line.
WHITFIELD: Oh, OK. All right. Very important to be very cautious.
COHEN: That's right.
WHITFIELD: And know all the facts.
COHEN: That's right.
WHITFIELD: Elizabeth Cohen, thanks so much. Appreciate that.
OK. Let's talk Hurricane Felicia. Already weakening as it tracks toward Hawaii. Chad said that yesterday. That would probably happen. And here he is once again.
So, folks can feel a little bit more relaxed or, no, not yet?
CHAD MYERS, AMS METEOROLOGIST: Yes. The people on the other islands other than probably the big island, especially now in the in the city of Hilo, all the other people are -- it's going to be a rain event. But you know what? If you get six to 12 inches of rain in any city -- I don't even care if it's Hawaii, and places in Kauai get 400 inches of rain a year -- you can still, if you get it that fast, you get it too fast, you can still get flooding problems.
What has happened, Fred, is that -- and we knew this was going to happen -- rather than stay down here in the warm water and then turn like Iniki did, this storm here, Felicia, has moved on up into a colder pool of water, which is right there. And as that colder pool of water has slowed the storm down, the storm now down to only 100 miles per hour.
Now, that's still a big storm; don't get me wrong. But it's not the 140-mile-per-hour storm that it was. A hundred miles per hour, gusting to 120. It is still a major event here, if this were to hit land at this point in time. That does not look like it's going to be the case.
Moving to the west-northwest at 13 miles per hour, and it's still going to go from a Category 2 to a 1 to a tropical storm, to only a 30- to 35-mile-per-hour low-pressure center as it approaches the islands. That's the -- that's the good news. Here's what I think, maybe, is the other story. That would be the island chain right there. We'll put this into motion, and I'll fly you down along. This is a very mountainous area, so if you get 6 to 12 inches on the -- on land and anywhere on an island, it's going to have to run down the one side. That's either the uphill side or the downhill side, and obviously with the wind coming in this way, if the storm comes somewhere in here, it would be the easternmost sides of the island. That would be the uphill side. Those uphills sides will catch all the rain.
There's the mountain area. Here's the saddle road coming on down. All of this water would run down all into these cities and towns along the eastern shores of these islands. Still very far away. This isn't going to hit until Monday, but we'll keep watching, Fred.
WHITFIELD: It will be a long weekend there for folks in Hawaii.
MYERS: It will be.
WHITFIELD: Thanks so much, Chad, appreciate that.
MYERS: You're welcome.
WHITFIELD: In the meantime, we are waiting for a news conference to take place there out of Illinois involving the Burr Oaks Cemetery. Remember, that was the cemetery that allegedly moved about 200 to 300 bodies and wanted to resale and, in fact, resold some of those plots of land.
You're in the CNN NEWSROOM and we'll take you there live momentarily.
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WHITFIELD: All right. Remember the case of the Burr Oaks Cemetery outside of Chicago? Allegedly, the operators of that cemetery dug up about 300 bodies and them dumped them in a mass grave? Now a live press conference involving that investigation.
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SHERIFF THOMAS DART, COOK COUNTY, ILLINOIS: ...regularly seven days a week during the course of this. The FBI, I can't begin to thank them for the amount of time and energy and resources they brought here. Without their help, I really don't know where we would be. The Cook County state's attorneys office were phenomenal as well as Cook County EMA, the highway department, forest preserve department, everybody was very helpful.
We've been out here, as you know, for quite some time. Many, many weeks. And during the course of those weeks, it's been a very trying time. But we're here today to inform the public that the evidence- gathering portion of this case is concluded as of today. As of today, we've collected over 1,200 pieces of evidence. Most of that human remains that were collected over the course of the time that we were here. There will never be completion. For those individuals who are looking for every part of the human remains that were disinterred to be recovered, that is not going to occur. It cannot occur. And it's closure that a lot of people wish, we wish, but it's not going to occur. We feel comfortable in saying that this criminal conduct went on for four to five years, and during the course of that, many disinterments occurred. And we did the best we could to recover as much evidence as was needed.
We are now entering a different phase, where we are now trying to work with individuals and with groups, who will turn this location into an appropriate historic landmark and will be treated in the way, with the respect it should be treated. And many people are coming together to attempt to put that very thing together.
A lot of time and energy has been put in to not only the criminal side of this, but also to -- trying to make this cemetery look the way it should have looked from the beginning. We have cleaned off every grave site. We have cleaned up all of the crime areas. We have done everything that you would want people to do to treat this in the appropriate way.
We are going to show you some photographs that we have of some of the before and after scenes to show you just the extent of what we have gone through during the course of this. But we have completed the evidence side today. And I'm joined here with numerous people that helped with us throughout this case, and first and foremost, I wanted to ask Tom Troutman to come up here from the FBI. Tom?
TOM TROUTMAN, FBI: Good afternoon. On behalf of SAC, Rob Grant, the FBI would like to express its heartfelt condolences to those were affected by the tragic events at Burr Oak. All the men and women in the FBI who worked with the search efforts along with those who worked with us, including the Cook County Sheriff's Office, the (INAUDIBLE) major crimes task force, and the Cook County Highway Department, and the Cook County Forest Preserve did so with a great deal of reverence, ever mindful of the fact that what we were recovering was more than just evidence, it was human remains.
And we wish we could have fully identified all of the remains recovered to give some sort of closure to the families who were affected by this unfortunate occurrence. However, as we got into our search efforts, we realized that doing so would be highly improbable. Even if we could have obtained a DNA profile from a bone or bones or fragments thereof, then we would have the problem of who we would compare that with, not knowing who these bones belonged to.
And, therefore, we'd be faced with the possibility of taking a sample from, you know, every viable relative we knew of that had a -- had a loved one or relative buried here in the cemetery. So, at that point, we began to focus our search efforts on -- on supporting the state's case and any possible federal charges. Thank you.
DART: Thank you. Now, we're going to hear from Roman, the receiver, the individuals in charge of the cemetery at this point. ROMAN SZABELSKI, CEMETERY RECEIVER: Thanks. I would like to thank Tom Dart and all of the sheriff's staff as well as the FBI for the excellent work that they've done in investigating this criminal scene. It is a sad situation that needs to be addressed.
But one thing I've seen with them in the few weeks that I've been here is the great compassion and care that they've offered to the families that they have dealt with and with the remains that they have handled during this time. It is remarkable to see men of law like this with great compassion and great care.
I've also had the opportunity in the last couple of days to meet with the newly formed Chicago Burr Oak Historical Society. And they will address you in a few minutes as well. But it's also going forward with their efforts to talk about this cemetery now as an historical site that has great value and great importance to the African-American community, and that is of great importance.
I pledged you to a long time ago that I would work towards the opening of this cemetery, and I know that there is much anxiousness about that as to when the cemetery will reopen. And I'm sad to say at this point, I still do not know what date that is. There is much work that I feel needs to be done so that we can welcome families with great confidence that this is where their loved one is and take them very comfortably and without additional stress to the grave of their loved one.
I ask for your patience as we move forward. I also ask for your dedication and help in moving forward. Because we will need the help of the community through the politicians, through the church, through members of the community as we try to open the cemetery back up to the loved ones. Thank you.
DART: Thank you. And finally, we're going to hear from Tony Burroughs...
WHITFIELD: All right, you were just listening to the investigators there say that outside of Chicago there, involving the Burr Oaks Cemetery, that they have concluded one portion of their investigation, which means they have collected about 1,200 pieces of evidence from this investigation. An investigation that stemmed from the operators of this cemetery removing something like 200 to 300 bodies buried there at the cemetery and then dumping them in the mass grave so that they could resell those plots of land.
This is an historic cemetery outside of Chicago. Some 7,000 bodies are buried there, including that of the 14-year-old Emmitt Till, who was brutally murdered in Mississippi back in 1955 and served as that murder -- it served as a catalyst in the civil rights movement. So, that investigation continuing, even though now they have ceased the collection of evidence there at that Burr Oaks Cemetery.
All right. Well, you just saw President Obama talking about issue number one, the economy, and you've been sending us questions about jobs, health care, cash for clunkers to mailtothechief. For some answers, Jared Bernstein joins me now from the White House. He is vice president Joe Biden's chief economic adviser. Good to see you, Jared.
JARED BERNSTEIN, BIDEN'S CHIEF ECONOMIC ADVISER: Nice to see you, Fredricka.
WHIFIELD: So, give me an idea. How much did this dip in the unemployment rate become the catalyst for the president saying the worst may be behind us?
BERNSTEIN: Well, probably less the dip in the unemployment rate, because that was driven not by adding jobs, but by folks leaving the labor force, no longer looking for jobs. Remember, you only get counted as unemployed if you're actively seeking work.
I think what the president was reflecting on there are a couple of very important data points, showing what we would characterize as less bad news. Not good news, because you lose 247,000 jobs, that's not what we call good news. But when you compare the rate of job loss, which was about half now of what it was a few months ago, when you compare the rate at which the overall economy's contracting, which is about 1 percent in the second quarter, compared to 6 percent in the first quarter, you really see the fingerprints of our program taking hold, helping to stabilize the economy.
But stabilization is not recovery. He said, the number one issue is the economy, you're right. Number 1-a, jobs and income for working families, and we're not there yet.
WHITFIELD: Now, we've been hearing from people from so many different forms via e-mail, and Brian says, "In all the discussions on the results of the stimulus bill, the White House has pointed out cases where jobs have been saved due to the bill. However, can the White House point out evidence of the job growth, not lack of loss, that was promised in the run-up to the bill?"
BERNSTEIN: I mean, sure. It gets back to the same point I was making earlier. If you look over the prior, say, three months -- Let's smooth out some of the bumps in these data, we're talking about job loss of around 330,000 per month. Far too much job loss. But if you compare that to the prior six months, at that point, we were losing somewhere between 657,000 jobs per month. We lost over 2 million jobs in the first quarter of this year.
Now, independent economic analysts, not us, not anyone here, folks out there in the economicS community evaluating this stuff, tell us that the Recovery Act has added two to three percentage points to GDP and has added maybe something like 500,000 jobs that would have been otherwise lost in the second quarter of this year.
So, what we can tell you is that the folks out there fixing roads, fixing bridges, the teachers, the cops, the firefighters that now have a job because of our state fiscal relief, helping very burdened states, these activities are absolutely helping to save jobs, as -- as the writer mentioned. WHITFIELD: All right. And this from Twitter, and it pertains for the cash for clunkers program. "Isn't cash for clunkers another form of tax cut? Is it a tax credit? Why not give tax cuts and allow Americans to stimulate all facets of the economy?"
BERNSTEIN: It's a fair question, and by the way, we cut 95 percent of working families' taxes with our making-work-pay tax cuts through the Recovery Act. Remember, about a third of that bill, or around $290 billion, is tax cuts.
But cash for clunkers is targeted something very specific, which is the very deep and significant contraction in auto demand and production for -- for vehicles in this country. And so, what you get there is kind of a two-fer. You're talking about a program that takes some polluting vehicles off the road, creates an incentive to do so, and helps stimulate auto production at the same time. So, it's much more targeted than the more broad kind of tax cut you see with maybe with making work pay.
WHITFIELD: And the question here about health care. The president has said that health care is certainly part of the economic picture. This from Sonya, who says, "What insurance does the president and Congress have, and why can't the public get that same insurance?"
BERNSTEIN: Well, in fact, the -- the health care reform plan creates, as the president envisioned it, creates two important things that actually get you pretty close to what she's asking about. One is a public option. And the other is what's called a health care exchange. It's where people or employers can essentially go to a very clear, transparent health care market, where they themselves can shop for plans. One of which I think is actually pretty close to the one that she's describing.
So, I think by dint of having the public option out there and the health care exchange, two very important pieces of health care reform that the president has consistently stood behind, you get -- you really do get there.
WHITFIELD: And is the White House being prematurely confident about the economy?
BERNSTEIN: Hmm. If you listen to the president today, I think what you hear is a very, very balanced view, and nothing that I would call confidence or overconfidence. I mean, confidence in the sense that our programs are taking hold and starting to stabilize the economy.
Now, to not observe that would actually be, I think, an economic as well as a policy mistake. You have to track your policies and make sure they're doing what you want them to do. They are helping to stabilize the housing sector. They're helping to stabilize credit markets. And now we see that we are losing fewer jobs per month than we were -- significantly fewer than we were a few months ago.
But what the president made very clear is that we are nowhere near out of the woods on any of these dimensions until we're creating robust, monthly job growth that really gives a lift to the living standards of working families. We're not there yet. But we're moving in the right direction. Free-fall appears solidly behind us, and I think that's what the president was trying to say today.
WHITFIELD: Economic adviser Jared Bernstein, thanks for your time.
BERNSTEIN: My pleasure.
WHITFIELD: Much more in the NEWSROOM after this.
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WHITFIELD: All right. Pakistan's most wanted terrorist reportedly has been killed in a military strike. The Associated Press reports an aide to Baitullah Mehsud confirms his death Wednesday in south Wizeristan (ph). Mehsud was considered the leader of Pakistan's insurgency and the prime suspect in the assassination of former Pakistani prime minister Benazir Bhutto.
CNN's Ivan Watson just spoke with U.S. General Stanley McChrystal about the situation in Pakistan.
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GEN. STANLEY MCCHRYSTAL, COMMANDER, INTERNATIONAL SECURITY ASSISTANCE FORCE: I would welcome Pakistani liaison officers in a number of our headquarters here, and I'd like to create the strongest connections possible. We already have a pretty good partnership. The stronger it gets, the better we all are.
IVAN WATSON, CNN CORRESPONDENT: Have there been any kind of coming over and operating with troops on this side?
MCCHRYSTAL: I am not going to talk about the specifics of where people operate, but I will tell you that we do have growing links with the Pakistani military. The Afghans impact in us (ph). I think it is all good.
(END VIDEO CLIP)
WHITFIELD: A lot going on in the CNN NEWSROOM today. We are just getting started. Stay with us.
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WHITFIELD: All right. We're pushing forward on one of California's newest laws. Next hour, nooses banned. But only if they are threatening and not on your own property.
And talk about threatening. A health care town evolves into shout and violence. What's really going on here?
(COMMERCIAL BREAK) WHITFIELD: Pushing forward on health care or should I say shoving? Across America, Detroit, Tampa, St. Louis and in Dallas, tempers are flaring. Just take a look. Elbows are being thrown and voices are rising at town halls with lawmakers home on their August break. Not everyone happy about that. This make-or-break month for health reform is so far generating a lot more heat than light.
Shedding light is what CNN does best. Our Carol Costello reports on who is protesting what and why.
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COSTELLO (voice-over): In a few cities across the nation, you cannot escape them.
CROWD: Just say no!
COSTELLO: Sometimes there are dozens, sometimes hundreds. Their mission -- you decide. That's Democratic Congressman Lloyd Doggett trying to talk to a constituent about health care reform. He says it was impossible.
REP. LLOYD DOGGETT (D), TEXAS: The crowd certainly was angry. I suppose some might have had a negative reaction to the poster that said "Lloyd Doggett, traitor to Texas, devil to all people." But I found it more amusing than I did something to be fearful of.
COSTELLO: But he did call the crowd a mob, and he also claims it was orchestrated by the Texas Republican Party. After the state GOP, it did admit to having a camera in the crowd thanks to an anonymous tip, but denied organizing what it called a grassroots event, also telling me, "Doggett owes us and them an apology for calling the crowd a mob." "Just Sayin'," can we talk civilly?
MAX PAPPAS, FREEDOMWORKS: We don't want them to yell and shout down people. We want them to try to talk to the Congressman.
COSTELLO: But some Democrats say Max Pappas's conservative group, FreedomWorks, doesn't want that at all. Some claim it urges its thousands of members to participate not in a discussion about health care reform, but a shoutdown.
PAPPAS: You get some instances where people are so passionate about what's going on that they get caught up in the emotions. And instead of having a civil discussion, they do start yelling or chanting, but that's only because they're passionate about this.
COSTELLO: But Democrats say plenty of like-minded organizations want it to work out that way. That's why recessrally.com lists where town hall meetings will be held or why Operation Embarrass Your Congressman celebrates making lawmakers look foolish, though you could argue those sites don't leave out Republicans. There is one senator who was shouted down himself at a town hall meeting who says all of this doesn't matter.
SEN. ARLEN SPECTER (D), PENNSYLVANIA: My preference would be to have it more sedate. But listen, democracy is robust. It can be rough and tumble, and nothing really surprises me anymore.
(END VIDEOTAPE)