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Sonia Sotomayor Sworn in; The of New York's Spanish Harlem Residents Proud; Hurricane Felicia Fizzles; Central Java Firefight Kills Terrorist; Hudson River Helicopter Crash; John Edwards' Mistress Testifies

Aired August 08, 2009 - 12:00   ET

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


FREDRICKA WHITFIELD, CNN ANCHOR: This is indeed a historic day. She is now the Associate Justice Sonja Sotomayor. History was made last hour at the United States Supreme Court, the first Hispanic and only the third woman to take the oath from Chief Justice John Roberts.

(BEGIN VIDEO CLIP)

CHIEF JUSTICE JOHN ROBERTS, U.S. SUPREME COURT: Are you prepared to take the oath?

ASSOCIATE JUSTICE SONJA SOTOMAYOR, U.S. SUPREME COURT: I am.

ROBERTS: Please raise your right hand and repeat after me. I, Sonja Sotomayor, do solemnly swear.

SOTOMAYOR: I, Sonja Sotomayor, do solemnly swear.

ROBERTS: That I will administer justice without respect to persons.

SOTOMAYOR: That I will administer justice without respect to persons.

ROBERTS: And do equal right to the poor and to the rich.

ROBERTS: And do equal right to the poor and to the rich.

SOTOMAYOR: And that I will faithfully and impartially.

ROBERTS: Discharge and perform.

SOTOMAYOR: Discharge and perform.

ROBERTS: All the duties incumbent upon me.

SOTOMAYOR: All the duties incumbent upon me.

ROBERTS: As associate justice of the Supreme Court of the United States.

SOTOMAYOR: As associate justice of the Supreme Court of the United States.

ROBERTS: Under the constitution and laws of the United States. SOTOMAYOR: Under the constitution and laws of the United States.

SOTOMAYOR: Under the constitution and laws of the United States.

ROBERTS: So help me god.

SOTOMAYOR: So help me god.

ROBERTS: Congratulations and welcome to the court.

(APPLAUSE)

(END VIDEO CLIP)

WHITFIELD: All right, lots of firsts taking place, today. It's the first actual swearing in to be televised and this one taking place at the White House. That's why we go to Elaine Quijano who is joining us from the White House, now.

The third woman to be sworn in on the history books, but the first Hispanic-American. So now, give me an idea what meeting will take place between she and the president.

ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Yeah, that's right. We should tell you, of course this is a huge victory for President Obama, his first high court appointee getting sworn in today. An emotional moment, first of all, as Sonia Sotomayor was sworn in by the chief justice, John Robert. Her mother Selena (ph), her brother Juan looking on, there.

But, for his part, President Obama did not attend. Why is that? Well, the president himself, we were told, wanted this to take place at the Supreme Court itself, not the White House. It has been done in the past, because he wanted to basically send a message about the court and the symbol of the court's independence, according to court and legal sources.

So, instead, there will be a reception for now Justice Sonia Sotomayor. It will take place Wednesday, here at the White House. And Fredricka, we are told that both President Obama and Vice President Joe Biden are expected to be in attendance.

WHITFIELD: All right, Elaine Quijano, thanks so much, appreciate that from the White House. Much more from you later on in the day.

So, Justice Sotomayor is a source of pride for the nation's Hispanics. CNN's Susan Candiotti is in New York's Spanish Harlem neighborhood, right now, where there was a watch party taking place in the last hour, Susan. Folks wanted to see this piece of history and all of it unfolding on live television.

SUSAN CANDIOTTI, CNN NEWS CORRESPONDENT: it was exciting for all the people who are watching here at (INAUDIBLE) restraint in Spanish Harlem. A number of people here from the Bronx, including this woman who, as you can see, has the appropriate tee-shirt on: "Wise Latina," made just for the occasion. Tell me, why is this day so exciting for you?

UNIDENTIFIED FEMALE: Well, because the senate of the United States was able to overcome its prejudices about women and about Latina women, and did the right thing and selected the best possible candidate to serve on the Supreme Court of the United States.

CANDIOTTI: You know, there are still some who wonder about her comment about being a wise Latina woman. Do you think her background will somehow color her decisions on the Supreme Court?

UNIDENTIFIED MALE: I don't think so. I think she comes with a wide range of experience and knowledge and living in a multicultural society, her being elected, selected into the Supreme Court creates a life curriculum for us to create a society towards justice and quality.

CANDIOTTI: I saw tears streaming down your face as you were watching the ceremony and you thrust your fist onto the air and you were so excited. Why is this such a source of pride for you? What kind of message does this send to all Americans?

UNIDENTIFIED FEMALE: That we have a fighting chance and that we are being recognized for the very first time. Being low-income individuals and living in a poor community, it shows that people can progress no matter where you're at.

CANDIOTTI: And you're one of the younger people that was here, today. What kind of message does this send to you and how does Judge Sotomayor inspire you?

UNIDENTIFIED FEMALE: It just shows me that as a young person I can accomplish anything. You know? I'm 19 years old, but I feel like I've got a long way ahead of me and I'm going to accomplish all my dreams and goals and she's such a real great inspiration.

CANDIOTTI: Thank you all very much for joining us again.

Of course, it's an historic day for all Americans, but here in Spanish Harlem, a special source of pride. Fredricka, back to you.

WHITFIELD: All right, Susan Candiotti in Spanish Harlem, thanks again.

So again, Justice Sotomayor will be meeting with the president on Wednesday, now that she is officially sworn in by the chief justice, even though that ceremony took place at the White House, not with the president there. All the nation, including Spanish Harlem was watching.

So, it brings us to this. In October, CNN will present "Latino in America," a look at how Hispanics are reshaping politics, business, schools and culture in America. "Latino in America," only on CNN this October.

President Obama says he is encouraged by a new report showing a slight decline in the unemployment rate. It's the first time that's happened in 15 months, but the president said it's too soon to celebrate. In his Saturday radio and Internet address, he once again made his pitch for health insurance reform, calling it essential for economic growth.

(BEGIN VIDEO CLIP)

BARACK OBAMA (D), UNITED STATES PRESIDENT: This month's job numbers are a sign that we've begun to put the brakes on this recession and that the worst may be behind us, but we must do more than rescue our economy from this immediate crisis.

We must rebuild it stronger than before. We must lay a new foundation for future growth and prosperity. And a key pillar of a new foundation is health insurance reform, reform that we are now closer to achieving than ever before. There are still details to be hammered out. There are still differences to be reconciled, but we are moving toward a broad consensus on reform.

(END VIDEO CLIP)

WHITFIELD: In response, Republicans say a nationalized health care system is not the answer. Instead, they want lower taxes, less regulation and reduced litigation.

(BEGIN VIDEO CLIP)

BOB MCDONNELL (R), VIRGINIA GUBERNATORIAL CANDIDATE: It's why we are committed to helping more Americans to get the health care coverage they need, not through nationalizing the system with a costly government-run plan, but rather by supporting free market incentives to help small business owners make coverage for accessible and affordable and ensuring that Americans can keep their individual private policies.

Government must be more efficient and more accountable, which is why we are calling to an end to the new government spending that is leading to an exploding deficit and burdening our children with the new debt they will have to repay.

(END VIDEO CLIP)

WHITFIELD: When push comes to shove over health care, have you seen these town hall meetings that look and sound more like a pro wrestling match these days than a meeting of law makers and constituents? Our Gary Tuchman has and puts all of this into context for us.

(BEGIN VIDEOTAPE)

GARY TUCHMAN, CNN NEWS CORRESPONDENT (voice-over): Is it democracy? Demagoguery? Or both? Congressional Town Hall meetings during August recess used to be rather sleepy affairs. Not anymore.

There are images of President Obama with a mustache like Hitler's or looking like the joker. And also elected Representatives hung in effigy.

Democratic Senators, like Pennsylvania's Arlen Specter...

SEN. ARLEN SPECTER (D) PENNSYLVANIA: Medicare and Social Security...

TUCHMAN: And Missouri's Claire McCaskill, are hearing it from extremely unhappy Americans who don't like the idea of health care reform.

UNIDENTIFIED FEMALE: Same plan they're asking us...

TUCHMAN: People have been arrested. Others have suffered minor injuries with the pushing and shoving.

Democrats like Florida's Kathy Castor have barely been able to get in a word edgewise.

At her meeting, reform opponents were seething because hundreds of them were stuck outside the Town Hall because they couldn't fit in the room. Protesters held signs on the other side of the window. The Congresswoman had to be hustled out.

In Texas, Congressman Lloyd Doggett tried to talk.

UNIDENTIFIED MALE: You voted against them and that's not right.

TUCHMAN: He, too, was drowned out. One protester used his artisan reach to pick the Congressman in a rather unsavory way.

REP LLOYD DOGGETT, (R) 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."

TUCHMAN: So how did it come to this? It depends on who you asked.

The Democratic National Committee says these confrontations are orchestrated by the Republican Party and the Democrats have released this Web video.

ANNOUNCER: They've lost the confidence of the American people. Now, desperate Republicans and their well-funded allies are organizing angry mobs just like they did during the election.

TUCHMAN: The word "mob" is greatly insulting to the folks on the other side of the argument. Many of the participants in these demonstrations said they are simply exercising their rights.

Ana Puig is Pennsylvanian who attended a Town Hall being hosted by Arlen Specter, and Health and Human Services Secretary Kathleen Sebelius.

ANA PUIG, THOMAS JEFFERSON CLUB: I feel like my constitutional rights are being taken away from me right before my eyes. I don't like the direction that we're going. They're taking away our freedom of speech. And the silent majority is finally fed up with it. TUCHMAN: But now liberal advocacy group Moveon.org, has sent out an email to supporters saying they have a plan, "to fight back against these radical right-wingers." The group is raising hundreds of thousands of dollars in donations.

It's not only the weather that's hot in August, now the political temperature is boiling, too.

Gary Tuchman, CNN, New York.

(END VIDEOTAPE)

WHITFIELD: All right, it's time to take the temperature down just a bit. That's the message from the White House , as well.

(BEGIN VIDEO CLIP)

ROBERT GIBBS, WHITE HOUSE PRESS SECY: They ought to be able to be conducted without shouting and shoving and pushing and people getting hurt. I think we can have honest policy disagreements without being either disagreeable or certainly without being violent.

(END VIDEO CLIP)

WHITFIELD: Earlier this week, Gibbs compared the scenes of health care reform to the "Brooks Brothers Brigade" in 2000. That of course, a reference to protests in Miami that disrupted the vote count during the presidential election battle between George W. Bush and Al Gore.

All right, a fizzling Hurricane Felicia, but that does not mean Hawaii is totally in the clear.

(COMMERCIAL BREAK)

WHITFIELD: All right, in Hawaii, they are preparing for a hurricane. It's looking a lot less menacing than just a few days ago. Hurricane Felicia, once a Category 4 storm, is now expected to hit the island chain as a tropical storm or perhaps even weaker, but there is still a good threat for lots of rain and mudslides and that can be a real mess. Nevertheless, Reynolds Wolf is in the Severe Weather Center.

How's it look?

REYNOLDS WOLF, CNN METEOROLOGIST: Well, it looks pretty good. You know, I got to tell you, that just about 36 hours ago this thing was a powerhouse, Category 4 storm, one of the strongest on the planet, but it has weakened significantly. And there are two big reasons, Fredricka.

One of the biggest reasons as to why it has weakened is because of this number, 77 degrees. Those are your water temperatures that you have, right between this system and the Hawaiian Islands. And for this storm to intensify or at least maintain that same strength it's got to have at least 80 degrees or higher. It's not the case. They're just going to lose that.

Another thing that's coming into play is the idea of some strong upper-level winds that are going to be coming in from the southwest and that's going to cause shear. It's going to cause this storm to rip apart a little bit and when that occurs, well, it's going to lose quite a bit of its intensity.

In fact, take a look at what we've seen just over the last couple of hours. It really has lost a lot of its structure.

Now, if you'll look at the forecast path, we're going to put that into motion for you. And the latest that we have is it's still has more of a westerly move than expected and it could go a little bit farther to the north of the big island, perhaps right on the big island or south of the big island as we get onto early Tuesday morning.

Also notice that as it weakens, it should become a very minimal tropical storm, maybe even a tropical depression, will still provide quite a bit of rainfall for Hawaii. So, there's a chance you could have some flash flooding, maybe even some mudslides.

(WEATHER REPORT)

WHITFIELD: Oh, that's not a good sign. I'm sorry Reynolds. While we can see you, we can't hear you anymore. So, hopefully we'll get a chance. Yeah, we have a microphone problem. We'll get a chance to revisit with you. Thanks so much, Reynolds. Sorry for that.

All right, the family of Billy Mays is criticizing a coroner's report listing cocaine as a factor in the TV pitchman's death. The 50-year-old Mays was found dead June 28 at his home in Tampa, Florida. The medical examiner found cocaine use had contributed to the heart disease that suddenly killed him. But, relatives say they never saw signs of cocaine use or any other nonprescription drugs. And they're considering an independent review of the autopsy, now.

Funerals are set today for two of the three women killed Tuesday night at a Pittsburgh-area fitness club. Police say the gunman, 48- year-old George Soldini, wounded nine others before turning the gun on himself. He reportedly bought some of his weaponry from the same company that sold guns to a student who went on a rampage at Virginia Tech, back in 2007. And the suspect in the Northern Illinois University attacks, last year. The online gun dealer says the sale was legal and he has done nothing wrong.

In the last few hours, Indonesia's elite anti-terror forces may have won their biggest battle in the ongoing war with insurgents. A series of missions ending successfully. Police say one raid stopped a plan assassination of the Indonesian president. But, their bigger get is in central Java where Indonesia's most wanted terrorist is believed dead after a long standoff and gun battle.

CNN's Dan Rivers reports.

(BEGIN VIDEOTAPE) DAN RIVERS, CNN NEWS CORRESPONDENT (voice-over): This was the last hideout of Indonesia's most-wanted terrorist and the focus of a ferocious firefight in central Java lasting 18 hours.

Indonesia's elite Detachment 88 (ph) anti-terrorist unit peppered the flimsy building with bullets. Eventually it was clear the men inside were dead and the victims included Noordin Top, a major victory for the police as ambulances came to collect the bodies.

Noordin Top was originally part of regional terror group, Jemaah Islamiyah, but later split from them, embarking on his own campaign of violence.

The authorities say he was behind a series of deadly bombings, including the huge blasts in Bali in 2002. Almost every year has brought a renewed attack in Indonesia from hotels to embassies, mimicking the targets picked by al Qaeda.

The most recent attack came just three weeks ago, a double bombing on two hotels in Jakarta, leaving seven dead plus two suicide bombers.

SIDNEY JONES, INTL CRISIS GROUP: I think the fact that Noordin Top is dead is a huge step forward in the fight against terrorism, not only in Indonesia, but in the region. The problem is we still don't know how big his network is and we don't know how many other arrests will take place. So, it's too early to conclude that the threat in Indonesia of future attacks is automatically going to go down.

RIVERS: In 2005, the police came tantalizingly close to catching Noordin at this apartment above a restaurant Samuri (ph), Indonesia. He had used it as a propaganda studio recording chilling messages warning of further attacks.

In other videos, his cell is shown training with firearms, learning unarmed combat, as well as detailed bomb-making techniques.

His decade-long reign of terror appears to be over. But experts warn there may be other followers willing to take his place. The police also found explosives at another house, this time near Jakarta.

CHIEF BAMBANG HENDARSO, INDONESIA NATL POLICE (through translator): We found 100 kilograms of explosives, two booby-traps and three plastic containers of explosives at the house (INAUDIBLE). We found a car that has been prepared for a car bombing in two weeks' time.

RIVERS: After the dramatic firefight, the question now for police, how widespread is Noordin's network and will the disciples have the capability to wreak revenge?

Dan Rivers, CNN.

(END VIDEOTAPE)

WHITFIELD: And this braking story that we're following in this country. You are looking at live pictures of the Hudson River at Hoboken, New Jersey. Why? Because emergency teams are responding to a crash between two helicopters taking place just moments ago, there over the Hudson River and search and rescue teams are there underway. We're not exactly clear how many people may be involved or onboard those two helicopters. But, this is the information that we have, thus far.

Among those who witnessed the crash, at least in an audible sort of way, Mike Doyle who is on the line with us now.

Mike, explain to me what it is that you heard, but not necessarily saw?

MIKE DOYLE, HEARD CRASH: We basically heard an explosion happening in the distance. And we were right at the corner of 7th and Washington in Hoboken, which is a couple of blocks from the river. And a lady next to us who was looking towards the river said, "oh, my god." And we asked her what happened and she said a helicopter -- she said that two helicopters just collided. So, we quickly ran to the river and more eyewitnesses there said that it was a small plane and a helicopter who hit each other.

WHITFIELD: So, you were already outside when you heard this loud noise. You spoke with someone, another passerby, someone else near you. So, once you ran to the river and looked toward the area where people believe they heard that explosion originating from, what did you see? Do you see the emergency response teams out there?

DOYLE: There was a bunch of boats that were already on the river just kind of circling, I guess, where the -- where everything went down, fell into the water. And it took probably about a couple of minutes and then a rescue helicopter showed up and some divers ended up jumping into the water.

WHITFIELD: But you have not seen any evidence of any debris on top of the water, anything that looks close to a helicopter?

DOYLE: No. There's no debris anywhere. There's no debris floating. All you see are the boats that were there helping out. I guess everything at that point had started to sink. But, there were no signs of anything.

WHITFIELD: So you live in the area, then?

DOYLE: Yeah. I live in Hoboken.

WHITFIELD: So, is it fairly common to see a lot of helicopter traffic in that general vicinity where you are on a regular basis or even on a Saturday morning?

DOYLE: Yeah. There tend to be, you know, a couple of helicopters here that do fly over that same path a lot. And plus, I mean, I guess, since Newark is so close -- I mean, I've never really seen a really tiny airplane fly by, but actually, when we were here, a couple of minutes after everyone was searching, there was another plane higher in the sky that was flying by. WHITFIELD: Yeah, I know, during a weekday on a regular basis it's likely -- it's very common to see a lot of helicopters, really reporting on traffic in the area and commuter choppers, as well. Just wasn't sure what the scene is usually like on the weekends.

Mike Doyle, thanks for being with us. We'll check back with you. And of course, we're going to continue to try and get as much information as we can about what we now hear to be two helicopters that collided and a search and rescue response team is there in the Hudson River just off Hoboken, New Jersey.

All right, John Edwards, his former mistress and why she's talking to a grand jury.

(COMMERCIAL BREAK)

WHITFIELD: All right, we want to bring you a little bit more information, updated information on that collision and now the search- and-rescue taking place off Hoboken, right there in the Hudson River. Susan Candiotti who is in New York has some new information. Based on the source you've spoken with -- Susan.

CANDIOTTI: Right, apparently the crash involves a tour helicopter, company called Liberty Tours helicopter, we are told, with six people aboard. It's unclear at this time whether the six includes the pilot or not.

This information is coming to us from New York's police department deputy commissioner, Paul Brown, who confirms this information to CNN. The helicopter apparently crashed into a small aircraft, and as you know, a rescue operation is underway at this time to see whether they can find any survivors of this crash, if that's possible, and looking for debris.

We know at least one helicopter has dispatched divers into the water, and obviously, there's a huge rescue operation going on at this time in the Hudson River.

WHITFIELD: OK. Susan, thank you so much. And just to give us clarity on the location here, Hoboken, I noted there are two airports, one fairly significant, one, the Newark Airport and a smaller one, Teterboro that is in the vicinity. Any idea whether these aircraft originated from either one or both of those airstrips?

CANDIOTTI: No, it's too early on. And of course, we're looking into all that information, naturally we'll be talking with the FAA and with other agencies who can help sort all this out.

Of course, as everyone knows it is not uncommon for helicopters to be flying up and down the Hudson River. Of course, this is a popular way for tourists to look over Manhattan and see the sights and now we learn tourists were evidently aboard one of the aircraft that crashed. So, we'll be naturally talking to them to find out more about this.

WHITFIELD: All right, Susan Candiotti, thanks so much. We'll check back with you momentarily.

All right, meantime, we're going to talk about some legal cases on tap, right now. We're going to turn to our legal expert, Avery Friedman, a civil rights attorney and law professor. Richard Hermann is not with us today, so we're going to see if we can handle this on our own.

AVERY FRIEDMAN, CIVIL RIGHTS ATTY: I think we'll get through this OK.

WHITFIELD: OK. All right, great. Well, a number of interesting cases, one including John Edwards, former presidential candidate, but this involves a grand jury testimony that also involved his ex- mistress. And even though Richard is not here, he did send me some comments on this, so I'll read a couple and then I'd love for you to weigh in, as well.

On John Edwards, he said, "Of course, never a good sign when federal authorities poke into the use of possible misuse of campaign funds" He says, "Knowingly converting money from a political action political committee for personal use is a federal crime, although Edwards claims he has no idea the payments were made." So, that's really at the core, here, the money to pay her. Was it...

FRIEDMAN: Well, and that's exactly right. He is correct in the sense when you divert campaign funds to personal use, that's a felony under federal law. The question that is presented here is how is the government going to make the case because the key witness, Fredricka, is Fred Barren, who is the financial director of the Edwards campaign. The governor's got a slight problem, he's dead. And so the difficulty is that the government is going to try to build their case by inference, essentially, and Reille Hunter, who was the ex-mistress, indeed, appeared before a federal grand jury and, you have a pretty good idea...

WHITFIELD: With her child in tow. There's the video, there. And I only underscore that because remember, you know, the accusations about whether or not that was indeed John Edwards' child, even though he says no, it's not. This is kind of an awkward situation.

FRIEDMAN: Well, yeah, but remember, that you know, that's a very frightening thing, I imagine for Mr. Edwards and also for Miss Hunter, because if the deal was, if the allegation is true that she was paid off and she's not allowed to say who the father is, you know what, she's going to be put under oath on the question whether or not she got $114,000 and who the father may very well be.

WHITFIELD: Oh, gosh. All right. Former Louisiana congressman, William Jefferson in court in Virginia. Jury deliberated for five days. We are talking about originally 16 corruption charges. They found him guilty of 11. This was no surprise to our Richard Herman who says, "Surprise, surprise." And he says oh, let this be a lesson. It's storing $90,000 in your freezer never ends well. That was at the core of this case.

FRIEDMAN: Well, yes. I think the $90,000 in the refrigerator or the freezer was the tip of the iceberg in the freezer, what do you think of that? But it's actually more than that. The jury actually the next day decided that the $90,000 was part of $740,000 in bribes for Mr. Jefferson, former Congressman Jefferson and his family. So ...

WHITFIELD: Now, he's still looking at sentencing.

FRIEDMAN: Well, the sentencing -- that's right -- will be coming up in October. And the maximum is 200 years. Yikes.

WHITFIELD: Oh, my gosh.

FRIEDMAN: Yes.

WHITFIELD: And then, isn't also what is at issue is whether he will lose a good $450,000 in assets or have to pay back, you know, some of the money that he's found guilty of taking?

FRIEDMAN: Well, the government is actually holding a big chunk of that money. So, I don't think that's going to really be a problem. That's what I said, the jury actually said he owes $470,000. And again, he's going to -- believe it or not, and this shouldn't be a shock, he's going to appeal that decision to the U.S. Court of Appeals for the full circuit.

WHITFIELD: Sometimes that buys you a little time.

FRIEDMAN: Yes.

WHITFIELD: You know, but then sometimes, you still are sentenced and then your appeal comes later and you're appealing while in your jail.

FRIEDMAN: Hey, they didn't call him dollar bill for nothing.

WHITFIELD: Oh yikes. OK, let's talk about Minor League pitcher Julio Castillo.

FRIEDMAN: Love this case, love this case.

WHITFIELD: Right? You do? Ouch.

FRIEDMAN: Yes.

WHITFIELD: Throwing the ball at a fan in a very hard, big way. And so, now we're talking about a possible lawsuit.

FRIEDMAN: Well, on the criminal aspect of it which got resolved just a couple of days ago, Julio, who is facing eight years, wound up with a 30-day jail sentence for hitting Chris McCarthy who's a fan with a bean ball. He bean balled him.

The interesting thing is his defense, among other things, he says, I am such a lousy pitcher in Peoria that I can't hit the broad side of a dugout where he claimed he was flinging that fastball. So, he missed the dugout, hit McCarthy. Yes, big civil suit coming up. WHITFIELD: So, you know, oftentimes when we see that happening in play, it's -- you know, the ball is being aimed at another player of the opposite team. But there isn't usually a criminal case that follows that, but since we are talking about a fan, that's why it's gone here.

FRIEDMAN: And the Chicago Cubs Organization's teaching him a lesson.

WHITFIELD: Yes.

FRIEDMAN: They yanked him out of Peoria and they sent him to Boise.

WHITFIELD: Ouch. All right, Avery, we're going to talk to you again. And we to are going to hear Richard's sentiments. Even though he is not here physically, he is with us in spirit.

FRIEDMAN: Well, he's a sentimental guy. That's all.

WHITFIELD: Yes. All right, Avery, thanks so much. Appreciate it.

FRIEDMAN: See you in a minute.

WHITFIELD: All right, the worst financial crisis since the Great Depression, nothing to smile about. But now, the president suggests a turnaround is at hand.

(COMMERCIAL BREAK)

WHITFIELD: Happening right now in the NEWSROOM, this breaking story taking place over the Hudson River, right near Hoboken, New Jersey. You're looking at pictures right now, a search and rescue mission is underway because a tourist helicopter with six people onboard -- it's unclear whether that includes the pilot -- somehow collided with a small aircraft. And now, a search and rescue teams are there trying to not only just find debris, but more importantly, find people who were onboard that aircraft. More information as we get it.

Meantime, Sonia Sotomayor was sworn in as the 111th Justice of the United States Supreme Court last hour. She is the first Hispanic to sit on the high bench. Today's ceremony for the first time also was televised. And taking place in the White House there with the Chief Justice John Roberts swearing her in. But the president was not there at the time.

And 88-year-old Eunice Kennedy Shriver is in critical condition today at a Cape Cod hospital. Her children, including California first lady and journalist Maria Shriver are at her side.

All right, the improving jobs picture for July promises an upbeat tone at the White House. President Obama says the worst of the recession may be behind us.

Here's senior White House correspondent Ed Henry.

(BEGIN VIDEOTAPE)

ED HENRY, CNN SR. WHITE HOUSE CORRESPONDENT (voice-over): The upbeat jobs report is little comfort to Greg Thompson who just feels fortunate the unemployment benefits he collects at the one-stop career center in Washington, D.C. were recently extended.

GREG THOMPSON, UNEMPLOYED: For me, I'm just glad they did. But there's no jobs. I mean, people can't -- I go out every week and I get the same story.

HENRY: But a couple of miles away at the White House, the president had a much rosier view of the impact of his stimulus plan.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: This morning, we received additional signs that the worst may be behind us.

HENRY: While 247,000 more people lost jobs in July, the president noted that's far better than what he inherited.

OBAMA: We're losing jobs at less than half the rate we were when I took office. We've pulled the financial system back from the brink while we rescued our economy from catastrophe. We've also begun to build a new foundation for growth.

HENRY: Republicans insist the stimulus may be working on the margins, but has not provided the jolt the president originally promised.

UNIDENTIFIED MALE: You have to define working. I mean, they've set the bar that says, you know, we're going to have the second Great Depression and we didn't, so it has to be working.

HENRY: While the president acknowledged there's a long way to go, he struck a very optimistic tone.

OBAMA: 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.

HENRY: But Greg Thompson, a heavy machinery operator, suggests while some jobs may be coming back, wages are plummeting.

THOMPSON: I get some people that say, well, look, I'll pay you so much. And I say well, that's half of what I've been getting. And they say well, if you don't want it, you know, we'll get somebody else to do it.

HENRY (on camera): The vice president's top economist Jared Bernstein was a bit less optimistic than the president. During an appearance on my radio show on CNN.com, Bernstein said the White House is not entirely confident that unemployment will keep trending downward. He said it's still entirely possible it will reach 10 percent by the end of the year.

Ed Henry, CNN, the White House.

(END VIDEOTAPE)

WHITFIELD: So, have we turned the coroner in the economy like President Obama suggested this week? That's the topic for our full hour beginning at 4:00 Eastern time today. We're going to be answering your questions about Cash-for-Clunkers as well as house payments and the job search. We want to hear from you. Send us your comments and questions to me on my Facebook page or on my blog at CNN.com/fredricka.

So, here's a taste of what you're already saying on my blog. Bill Foster (ph) says "the rate does not include all the people that no longer collect unemployment benefits that still do not have a job. What about the record high increase of people getting food stamps?" He says the media just doesn't get it.

Robert Wallace (ph) says, "it hasn't begun. It's a final spiral, yet wait 'til everyone cashes in on their 401(k)s that have regained some value." And Victor says "With the amount of unprecedented jobs lost, businesses going bankrupt, banks collapsing, health care costs out of control, et cetera, I'm amazed that in a little over six months that we are even showing any signs of recovery at all."

So, all of this going to be the subject of our conversation 4:00 Eastern time today. Please join us, be part of the conversation.

All right, Oprah Winfrey faces a trillion dollar lawsuit. This is a lot of money. Who's suing and why? I'll talk with our legal guy Avery Friedman about this one.

(COMMERCIAL BREAK)

WHITFIELD: All right, let's resume our case load here with our legal guy Avery Friedman who's back with us. Richard Herman is not with us today, but he has given us some sentiments on some of the cases and legal matters that we're going to be delving into.

All right, let's talk about Supreme Court Justice now, Sonia Sotomayor, sworn in today by Chief Justice John Roberts. But what was different here, it was televised. It did take place at the U.S. Supreme Court, I misspoke, saying it took place at the White House.

So, talk to me about now there have been some folks who question the whole separation of powers you know, and if that is going to be an issue since of course President Obama big fan of Sonia Sotomayor. He, after all, appointed her.

FRIEDMAN: Sure. Well, I will tell you that this was a great day for America, Fredricka. And not for the reasons that a lot of people are thinking. We recognize now Justice Sotomayor, but what happened is America has never seen in our nation's history a swearing in of a justice of our U.S. Supreme Court. What a great moment.

And more importantly, on the separation issue, you recall that Judge -- or Justice Roberts and Justice Alito were sworn in at the White House. Well, President Obama and now Justice Sotomayor got it right. The swearing in took place at the U.S. Supreme Court, which the founders, I think, intended.

This is a separate, independent branch of the government. And I think before this when you have swearings in at the White House, there's a mixed message. The beautiful thing about today is that swearing in took place where it should have been, in a separate, independent branch of the government. A great, great day for the Constitution.

WHITFIELD: And our Richard Herman weighs in this way. He says at the end of the day though, really thinking forward in terms of what's it's going to mean in terms of the balance of the court. She is going to occupy the same place in the breakdown of justices as Souter, who she's replacing, how he did so in the court's ideological split and that shouldn't alter the court in any way. Agree with that?

FRIEDMAN: Fifty percent. I -- no one is psychic. No one really knows how great or not great this justice is going to be. Yes, on gun rights, affirmative action, civil rights, privacy rights, we have some sense. But once you go to the Supreme Court, Fredricka ...

WHITFIELD: Yes.

FRIEDMAN: ...it's a whole new ballgame. Maybe right, may be wrong. We just don't know.

WHITFIELD: All right. Now, let's talk about this suspended police officer in Boston ...

FRIEDMAN: Boy, oh boy.

WHITFIELD: ...who's now, you know, thinking about suing and saying what a minute, he is removed, penalized for a racial slur ...

FRIEDMAN: Yes.

WHITFIELD: ...according to the police commissioner and now he says, you know what? I want to keep my job, and so I'm taking this to court.

FRIEDMAN: You know what? This case, at least for purposes of federal practice, is so upside down. No. 1, the process within the department isn't even completed yet. He's saying his freedom of speech, if you can believe this, is somehow obstructed because he used a racial slur.

And in fact, the U.S. Supreme Court has told us that there is no absolute right of freedom of speech unless this particular officer is advancing an issue of public concern. He has no first amendment rights, jumped the gun. If it goes to court, it's on its way out the door.

WHITFIELD: Yes, and Justin Barrett -- you know, according to Richard, he -- it sounds like he kind of concurs with what you're saying. The suit contends that Barrett has been caused pain, anguish, mental distress, really should not have thought that he could bring this before the court after sending a racially insensitive e-mail.

FRIEDMAN: Going nowhere, going nowhere.

WHITFIELD: OK, let's talk about Oprah. This case, $1 trillion going nowhere ...

FRIEDMAN: Yes.

WHITFIELD: ...$2 trillion, maybe? I don't know. This young man says she plagiarized his thoughts, his poem.

FRIEDMAN: Yes.

WHITFIELD: And she's profiting from it, and so he says I want a cut.

FRIEDMAN: Yes, that's Damon Lloyd Goff who lives in the Bronx. I guess he was inspired by Judge Sotomayor. She got out of the Bronx. He wants to get out of the Bronx and wants Oprah to pay for it. And actually, it's even more, Fredricka. He wants $1.2 trillion. Bottom line, as he saying, she sold 650 million books at $19.95, that's his worth. Give me all the money. Doesn't have a prayer in this case.

WHITFIELD: Oh, boy. All right, well, at least he's getting a little publicity, right? It's not what he wanted I'm sure, but ...

FRIEDMAN: Right, I'm sure.

WHITFIELD: ...totally, he wanted some bank, but oh well.

FRIEDMAN: Well, maybe he did -- wait a minute, maybe he did.

WHITFIELD: OK, well, that's true, too.

FRIEDMAN: Yes.

WHITFIELD: Avery, thanks so much. Appreciate that.

FRIEDMAN: See you soon.

WHITFIELD: Good to see you.

FRIEDMAN: Take care.

WHITFIELD: Thanks for flying solo today.

All right, let's talk about this breaking news that we continue to follow out of Hoboken, New Jersey. You're looking at the Hudson River. Why? Because search and rescue teams are there looking for any remnants and survivors of a collision between a tourist helicopter and a small plane.

Alanna Duffy is an eyewitness to what took place moments ago. She's on the phone with us now. Alana, what did you see?

ALANNA DUFFY, CRASH WITNESS (via telephone): All I saw -- you know, I did not see the collision. I looked up into the sky and I saw a plume of smoke. I saw a helicopter twirling through the air and the rotors were removed. There are pieces and shards of the helicopter flying around. And then, the actually body of the helicopter turned and made a nose dive straight down while there are still parts of the rotor floating above it.

WHITFIELD: And you are near that location right now?

DUFFY: I am standing -- yes, I'm on the ...

WHITFIELD: OK.

DUFFY: ...west side highway in Little West 12 looking out at the water, yes.

WHITFIELD: And now describe for me what you're seeing.

DUFFY: Right now, there's a fair bit of air traffic. Obviously, there's a ton of people around here. There's ambulance, fire, police. I saw the divers suit up to get in the water to look for survivors. But I can tell you from here, there's nothing buoyant out there. So, whatever was -- you know, the helicopter or whatever hit it are definitely under water.

WHITFIELD: And in the time that you have been there, have you seen what appears to be any removal of a person? Any of those ...

DUFFY: No.

WHITFIELD: ...divers pulling up anything?

DUFFY: You know what? I haven't. I haven't seen any of the EMS units leave. So, that leads me to believe that nobody's been rushed to a hospital or anything.

WHITFIELD: Yes. Give me an idea on a Saturday morning, or mid- morning what the air traffic usually is in that area.

DUFFY: You know what? There's a fair bit of air traffic. I mean, it's New York and a lot of the planes tend to go over the river and it's tourist season. So, right now, I'd say it's probably medium to high air traffic.

WHITFIELD: OK. Alanna Duffy, thanks so much for your account of what you saw and what you're seeing right now there in Hoboken, New Jersey, right there in the Hudson River. Search and rescue teams looking for survivors of this collision between a tourist helicopter and a small plane.

Much more straight ahead right after this.

(COMMERCIAL BREAK)

WHITFIELD: Much more on this breaking story of Hoboken, New Jersey there. You're looking at the Hudson River because an intense search and rescue mission is underway after the collision between a tourist helicopter where it's believed at least six people were onboard and that may include the pilot. Perhaps it does not. We're not clear, but we know six people onboard that chopper colliding with a small aircraft. And now, a search and rescue is underway.

We've been talking to a number of eyewitnesses. We're joined by another eyewitness, Scott Schuman who's on the phone with us now. Scott, I just spoke with a witness a moment ago who told me that she sees nothing buoyant, but has seen the divers going under water. What have you been able to see?

SCOTT SCHUMAN, CRASH WITNESS (via telephone): Yes, I've kind of seen the exact same thing. Right now, we're standing on the water and there's just a lot of helicopters flying around and a lot of different boats in the water, as well.

WHITFIELD: In the time that you've been there, by chance have you seen anyone that may have been rescued in the elapse of time that you've been there?

SCHUMAN: I have not seen anything. But just judging from the impact when the plane and the helicopter hit, it would be very, very unlikely for a positive outcome from my vantage point.

WHITFIELD: So, it sounds to me you actually saw the impact?

SCHUMAN: Yes. We were actually walking, we heard the loud bang and saw both the plane and the helicopter go into the water.

WHITFIELD: And then what?

SCHUMAN: Well, I mean, we saw the plane (INAUDIBLE) and was kind of whirling its way down. Brown smoke coming out of the back of it. It crashed into the water and then a few seconds later, the helicopter with debris flying off of it also hit, as well. And it was just a matter of minutes before we saw a number of different boats rushing to the scene. And actually, we saw a little bit of debris actually falling in Hoboken right up the street in front of us.

WHITFIELD: During your walk, did it strike you unusual or is it fairly typical Saturday mid-morning, early morning to see any kind of air traffic in that area?

SCHUMAN: No, nothing out of the ordinary. I was actually just taking a walk. My grandparents had come up to visit and see Hoboken for the first time and like I said, we heard the bang and just looked straight up and it was a very crazy scene.

WHITFIELD: So, where you are right now, are there a number of onlookers?

SCHUMAN: Yes. I mean, the water is basically packed almost as it was for the fireworks with people just looking on with cameras and taking pictures of everything and just hoping and the police are here, kind of blocked off the street by the water with police, fire engine as well as ambulances just waiting and hoping for something to happen. WHITFIELD: All right, Scott Schuman, thanks so much for your account of what's taking place there on the Hudson River at Hoboken, New Jersey.

So again, it appears as though, according to eyewitnesses and even our sources there checked out by our Susan Candiotti in New York that a small tourist helicopter with possibly six people onboard, unclear whether that includes the pilot, collided with a small plane.

And you heard Scott's account of hearing the collision and then seeing the small plane kind of whirly bird right down into the river there. Within a matter of minutes, according to Scott's account there, rescue and search teams have gone into the water. Rescue choppers also in the air trying to find any survivors of anyone to rescue from this scene.

Much more information on this as we continue to watch the developments there in Hoboken, New Jersey in the Hudson River.

(COMMERCIAL BREAK)

WHITFIELD: All right, search and rescue continues to be underway there in Hoboken, New Jersey right there on the Hudson River. You see apparatus there all looking for signs of life after a tourist helicopter with at least six people onboard collided with a small plane. Eyewitnesses say that they see divers in the water and many search and rescue teams there.

All right, something else we'll be focusing on later on today. Have we, in fact, turned the corner in the economy as President Obama suggested earlier in the week, including that of yesterday, his message. Well, that's the topic of a full hour at 4:00 Eastern time today.

We want to hear from you, so send us your comments and your questions to me on Facebook or my blog, CNN.com/fredricka. We'll get your thoughts on the air, be part of the conversation to indeed discover whether or not the economy or the recession is slowing down in anyway.

Stay with us throughout the day for the latest breaking news. "YOUR MONEY" starts right now.