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Hurricane Season Kicks Off With Three Storms; Focus on Military Vets; Is the Stimulus Working?; Debunking Reform Myths; Crews Fight Nearly a Dozen of Wildfires; Progress in Pakistan; Healthy San Francisco

Aired August 17, 2009 - 09:00   ET

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

BETTY NGUYEN, CNN ANCHOR: Hundreds of billions of dollars to jump start the economy. Now six months old, is the stimulus working? We ask the experts and we are asking you.

After weeks of waiting, the hurricane season is in a hurry. One storm hits Florida, and we're watching two more.

Plus, three sisters worried about health care reform. Our Dr. Gupta aims to put their fears and yours to rest.

Good morning, everybody. I'm Betty Nguyen in for Heidi Collins on this Monday, August 17th. And you are in the CNN NEWSROOM.

ANNOUNCER: This is CNN, your hurricane headquarters.

All right. Let's get right to it. We have three storms to talk about. We've got Claudette first up on deck. She is a strong tropical storm. And then we have Bill. Now, Bill's a bit of a stronger storm, could, in fact, become a hurricane a little bit later this week. And of course, our Reynolds Wolf right here watching both of them for you, including a third storm. That one named Ana. That is a tropical depression.

So, Reynolds, you've got your eye on all of this activity. A lot of first to talk about weather-wise. What are you looking out for today?

REYNOLDS WOLF, CNN METEOROLOGIST: Absolutely. We're actually seeing kind of a historic thing here. This is the first time since 1984 that we've had the A, B, and C storm at the same time. And we see many of these forms in pretty quick duration.

Let's start off with one that's closest to us. That, of course, would be Claudette. This formed just yesterday morning, made its way to the north, right now it's already coming onshore in the parts of the panhandle and back into Alabama.

And I can tell you there are many places in Alabama, especially in Mississippi, that could be dealing with some flooding, possibly rainfall totals anywhere from, say, maybe 3 to 6 inches, perhaps even more.

If you want an idea where the storm is headed, the latest path we have from the National Hurricane Center brings it up right along parts of the Alabama and into Mississippi border, eventually stalling out right near Memphis, Tennessee. Again, a big rainmaker through Tuesday.

And the next storm, we're going to this one very quickly. This one is a little bit farther off to the east. Obviously, we're talking about Hurricane Bill. For the time being, Bill is a -- as we mentioned a hurricane winds right at 75 miles an hour. But this too was forecast to be something considerably stronger, in fact, a major hurricane.

Category three on the Saffir-Simpson scale with winds in excess of 120 miles an hour as we get into Thursday, then into Friday, then Saturday. Right now the path brings it between Bermuda and the U.S. mainland, but a lot of changes can take place between now and over the next couple of days.

We'll watch it very carefully and of course, we've got Anna, with (INAUDIBLE) with that storm we'll talk about. We will touch on that one in mere moments.

NGUYEN: We are watching her for days. OK. Thank you, Reynolds.

WOLF: You bet.

NGUYEN: Let's get you now to some health care reform and this make-or-break month. Lawmakers are getting an earful from angry constituents and the White House apparently listening.

This morning, there are signs that President Obama may be willing to give up one controversial element. His government-funded option for insurance. Now that feature has been a cornerstone of the Obama proposals, but it has fuelled angry protests at town hall meetings and drawn criticism from both Republicans and some Democrats.

Those critics say the government-funded option would be too expensive and could put private companies out of business. So instead, the president may be willing to support a nonprofit cooperative.

Now they would compete with private companies. The big question, though, would this White House compromise win over enough skeptics on Capitol Hill to secure passage of the top domestic priority?

Well, also in the headlines right now, health care for our military veterans. President Obama is talking about that today when he speaks to the nation's largest organization of combat veterans. We're going to have more on that in just a moment.

But first, want to give you these live pictures from Philadelphia. Senator Arlen Specter and the secretary of Veteran Affairs speaking to veterans at Drexel University. Also there, CNN correspondent Barbara Starr. She joins us now live.

Barbara, what are we expected to hear today?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Betty, the town hall here is just getting underway at Drexel University in downtown Philadelphia. Now, you will recall Senator Arlen Specter faced a very contentious crowd just several days ago when he held a town hall on health care reform.

And because of that, what is going on here at Drexel behind the scenes is there has been very minimal publicity, actually, about this event even though it's for veterans because of the concern that it could be disrupted.

I have to tell you, this hall now has some veterans in it, some of the local people from here in Philadelphia, but also a lot of people from the VA, from Drexel University, filling up the halls because there have been such minimal publicity about this event.

The hall is actually ringed with various security personnel who are quite anxious about any possibility of disruption. Nobody wants to see the picture of a veteran being hauled out by security.

But the real issue on the table, of course, is for returning war veterans, the kind of health care that they are getting, whether they're getting the benefits they need, and the education, the new GI Bill is in effect giving them extra education benefits and they want to get the word out that these benefits are now available to veterans.

It's one of the reasons, just one of them, that this town hall is being held. Betty?

NGUYEN: Well, Barbara, you've also looked at the issue of homeless vets. What are you finding there?

STARR: Well, this is a very serious issue for some of these returning vets. Very tragically facing these same kinds of issues that their returning Vietnam veteran colleagues face some 40 years ago. Homelessness, substance abuse, lack of education, the need to get a good job.

And that really circles back to what the basic bottom line is these days. The new GI Bill gives veterans extra educational benefits, a big push by the VA to get these returning vets back into school, get them trained for new profession so they can get a job, and not be on the city streets.

That's one of the major issues at the top of the list. But health care benefits are the question that we still expect many veterans to ask here today in Philadelphia -- Betty?

NGUYEN: No doubt. All right. Barbara Starr, joining us live. Thank you, Barbara.

I want to get back to the president and today's speech to Veterans of Foreign Wars. Many want to know about U.S. plans in Iraq and Afghanistan.

Senior White House correspondent Ed Henry is at the annual convention in Phoenix. So Ed, what do the veterans want to hear from the president today? ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT: Well, good morning, Betty: Some of the veterans say they do want to hear about health care, especially whether or not the reform effort will harm Medicare since many of these veterans are senior citizens.

But they also clearly want more details about the effort in Afghanistan, how long we're going to be there, what is the mission? It's a very, very emotional issue for them.

(BEGIN VIDEOTAPE)

HENRY (voice-over): Four American vets, two voted for the president, two for John McCain, but they share a brotherhood and a feeling that many Americans do not appreciate the sacrifice of U.S. troops dying in two wars. A feeling so painful it brings one of these men to tears.

ROLAND ROCHESTER, VETERAN: I know that they are tough, I know they're strong. I have a hard feeling for those that are over there. But I'm a Marine, and I will stand up for our chief of staff and our soldiers everywhere they go.

HENRY: All four said they want to hear more specifics from the president about the days ahead in Afghanistan in particular. What's interesting is Gary Malone, an Obama voter from Arkansas, is deeply concerned the president is sending more troops into a quagmire.

GARY MALONE, VETERAN: We lost 58,000, over 58,000 in Vietnam. I said this would not turn into another Vietnam. It's turning into another Vietnam.

HENRY: But a different view from Buck Cowley of Arkansas.

BUCK COWLEY, VETERAN: I was in World War II, Korea, and I served in Vietnam.

HENRY: Cowley is a McCain voter but gives Obama high marks for sending more troops to Afghanistan.

COWLEY: Calcification never got anybody anywhere.

HENRY: The talk of another Vietnam stirs Lewis Wood, a McCain voter from Arizona, who thinks Mr. Obama has been weak.

LEWIS WOOD, VETERAN: I also don't want to see it turn into a situation where they just up and pull the troops out and then have the public of the United States say, oh, well, you know here we are, we lost the war in Afghanistan or Iraq.

Just, you know -- because that's the feeling that people have about the war in Vietnam, that we lost that war. And I'll say it right here now that we was (sic) winning in Vietnam when I left there, the politicians lost that war.

HENRY: But Wood says he will support the president now and is inspired that for the first time ever an African-American commander in chief will address the VFW.

WOOD: I'm proud of the United States, you bet you.

HENRY: And so is Roland Rochester of North Carolina whose heart aches for the men and women dying overseas. He voted for Mr. Obama and is confident he will handle both wars well.

ROCHESTER: He's my chief commander in chief and I'm proud of him.

(END VIDEOTAPE)

HENRY: Now White house spokesman Robert Gibbs says while the president will thank U.S. troops, he's not planning to get into more detail about Afghanistan because the commanding general there is conducting a top to bottom review right now, doesn't want to interfere with that.

I can tell you that may disappoint some of these veterans, but even the McCain voters told me they respect the commander-in-chief and they're willing to give him more time to get it right. Betty?

NGUYEN: All right. CNN's Ed Henry joining us live. Thank you, Ed.

And we will have live coverage of President Obama's speech to the Veterans of Foreign Wars that is scheduled to get underway at 2:00 p.m. Eastern.

In the meantime, Americans in the war zone. Look at the numbers right now, 130 U.S. troops are now serving in Iraq. There are 62,000 American forces in Afghanistan. The Pentagon plans to send 6,000, another 6,000 U.S. troops there by the end of the year.

All right, so praise for Pakistan's efforts to fight the Taliban from special U.S. envoy Richard Holbrooke who is on his fifth visit over there this year.

Now this summer, Pakistani troops went after the Taliban hard in the Swat Valley and Holbrooke says U.S. officials are impressed with the results. And because of that, he also says U.S.-Pakistani relations are improving.

Well, it was supposed to be a $787 billion economic shot in the arm. So how is that stimulus plan working out for you? Well, six months into it, we want to know.

WOLF: What they're saying is, two's company, three's a crowd. We're watching three tropical systems right now moving through parts of the Caribbean, back in the Atlantic, and of course, the Gulf of Mexico.

We're going to give you the latest details coming up right here on CNN, your hurricane headquarters.

(COMMERCIAL BREAK) COLLINS: Well, Claudette is the first storm of the Atlantic hurricane season to make a landfall in the U.S. and that storm came ashore early this morning in the Florida panhandle near Ft. Walton Beach. And since making landfall, Claudette has been downgraded to a tropical storm -- well from a tropical storm to a depression and it's expected to be a big rainmaker for the Florida panhandle as well as Alabama.

Reynolds Wolf is watching this. Reynolds, I mean, there's more than just Claudette out there that we're worried about. There are two other storms, correct?

WOLF: Absolutely. You know, during our first update, we discussed Bill, we discussed Claudette, obviously. We've also got the other one out there. Anna. Anna right now, just kind of a mess. A little bit of a circulation pattern that we're going to watch very carefully.

The big fear with Anna is not what it's doing right now, but what it may do in the next four to five days. Something that we're going to be watching very carefully. One thing we're watching, say, in parts of the nation, especially in spots like Pensacola, would be the skies.

Take a look at this tower cam we have from you from Pensacola. Some heavy rain falling there, we're going to be seeing more rain moving into places like Alabama, back into Mississippi, compliments of Claudette. Some places I have no doubt, later on today, are going to report, say, maybe five inches of rain, perhaps even more. There will be some flash floodings so keep that in mind.

So, again, the next storm we're going to talk about, this one is tropical depression Anna. Let's enlarge this view and show you this. This is kind of a cluster right moving across the Leeward Island, eventually moving into Puerto Rico and the Dominican Republic.

This storm really has a lot of things working against it. Not really storm in a tropical storm, but really a cluster, just a disturbance that is moving west-northwest in 28 miles an hour. And to give you an idea of where this thing is headed, we're going to put this path into motion. Compliments of the national hurricane center.

And the latest path brings it right across parts of the Dominican Republic and back into Haiti where the higher elevation really is going to take a big toll on this storm, ripping it apart, should be just an area of low pressure moving it possibly, say, into the Straits of Florida as we get into Thursday.

One thing to watch until then, though, heavy, heavy rainfall in parts of, say, the highest elevations of Hispanola into the Dominican Republic and Haiti. Could see some mudslides there. But as this thing moves into the Straits of Florida and possibly into the Gulf of Mexico, that is a real concern for us because there's a chance this thing could really blossom into a much bigger system once again.

So it is certainly one that is going to be something worth watching, could be a daunting thing to deal with as we make our way into the latter half of the week. Let's send it back to you.

NGUYEN: All right, Reynolds. We will be watching very closely. Thank you for that.

I want to turn now, though, to the global financial crisis and another nation now says it is in the black. Like Germany and France, Japan says the recession there may be over. Its economy expanded this quarter, the first time that has recorded any growth in over a year and a booming export trade and stimulus program have helped contribute to the rebound.

But some economists believe rising unemployment in the country as well as decreasing incomes may cancel out any gains.

Well, a successful stimulus program may have spurred the economic growth in Japan, the world's second largest economy, but is a similar program working here? In the world's largest.

Christine Romans joins us now live from New York. All right, Christine, is it working?

CHRISTINE ROMANS, CNN CORRESPONDENT: Well, this poll, the CNN -- I'm sorry, "USA Today"/Gallup Poll found that this stimulus (INAUDIBLE) has an image problem, Betty, that most Americans feel it isn't working or, in fact, making things worse.

Let's take a look at these numbers. This is what they found in a poll of Americans taken from August 6th to August 9th. Currently, they say the stimulus' effect on the economy, a majority said no effect or worse. Right now, 57 percent say no effect or worse. Longer term, 60 percent said that the stimulus would have no effect or would actually hurt the American economy.

What about on personal finances right now in the very short-term? A similarly pessimistic take overall. A majority said no effect on their personal finances right now. 18 percent say they were better off, 68 percent said no effect, 13 percent said the stimulus is actually making their personal finances, their personal situation worse, and 1 percent had no opinion.

Now, look, $200 billion of that economic stimulus have been allocated, put to work in the economy. There's another $500 billion plus that's set to go out, as well. That's all over the next couple of years. Some of this is time released, some of it is different kinds of programs, it's tax cuts, it's funneling money to the states so they can cover some of their budget shortfalls, it's infrastructure spending, it's a lot of different things.

But at the very least here what we know is that a majority of Americans, according to this poll, are still skeptical, Betty, about the stimulus. It's going to make life better for them and about half say they are very worried, very worried that the stimulus will be wasted in the end.

So, a bit of an image problem for the stimulus, indeed.

NGUYEN: Yes.

ROMANS: If people want to follow how that money is being spent, I encourage them to go to Recovery.org or Recovery.gov, rather.

NGUYEN: Right.

ROMANS: That is the government Web site where you can track how this money is being spent.

NGUYEN: See where that money is going. All right, Christine Romans, as always.

ROMANS: Sure.

NGUYEN: We do appreciate it.

OK. So you saw the poll numbers, and we want to know what you think. You can reach out to us today, you can go to the NEWSROOM blog here on Heidi's page or you can even go to my page.

The question to you is this. Is the stimulus working? It's been six months, what do you think? You can also reach me on my Facebook and Twitter pages. We want to hear from you today. We will be reading some of your responses a little bit later in the show.

In the meantime, though, for many senior citizens the thought of health care reform is a scary thing. Our Dr. Sanjay Gupta will separate fact from fear.

(COMMERCIAL BREAK)

NGUYEN: Health and Human Services secretary Kathleen Sebelius says the Obama administration is preparing for the worst and hoping for the best when it comes to the H1N1 swine flu.

She says the -- they are optimistic that a vaccine will be available in mid-October and Sebelius says it will probably be Thanksgiving before high-priority populations are completely vaccinated against the virus.

All right, so many older Americans who have insurance are afraid that reform will change their care for the worst.

Our chief medical correspondent Dr. Sanjay Gupta takes a closer look at what the reform bills are really saying.

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Well, there is a term that you hear a lot when talking about health care reform, and that term is rationing. What exactly does that mean?

We came here to this intensive care unit at Southern Regional Hospital to try and find out, and what we heard was a tale of three sisters.

(BEGIN VIDEOTAPE)

GUPTA (voice-over): At 78, Thelma is the youngest, and then there's Carolyn who is 80, and Helen who's the oldest, she's 82.

(On camera): Are you worried with health care reform -- a lot of people have been talking about...

CAROLYN MCCOY, PATIENT: I'm concerned with it.

GUPTA: Tell me why.

C. MCCOY: I try not to worry. Well, I have read some things that says that as you get older you're going to wait and wait and wait before you can have surgery. I've heard that they're going to look at the older people and you're going to wait longer than the younger people.

GUPTA (voice-over): It's not true, though a lot of people think so. A look at the reform bill in Congress, there's no mention of that. No mention of rationing, no mention of the government making so-called "end of life" decisions for seniors.

So where is this notion coming from? From a provision in the House health care bill, providing for end-of-life counseling.

Republican Chuck Grassley says his Senate committee dropped that provision for fear it would be misinterpreted.

KEN THORPE, HEALTH POLICY EXPERT, EMORY UNIV.: I think people are freaked out because there's a lot of bad information and misinformation being put out there by opponents of health care reform, by saying that we're somehow going to pull the plug on grandma. Those are just sort of fear mongering our there for opponents of reform.

GUPTA: Misinformation? Yes, and yet that fear is only growing.

(On camera): Are they saying that the older people aren't as valuable as younger people?

C. MCCOY: Oh, certainly, certainly.

GUPTA: You feel that for real?

C. MCCOY: Well, I don't personally feel that, but I feel like the government thinks so. I have had two knees replaced. I've had a hip replaced. I've had spinal stenosis, and that was done at this hospital. That was back in 2000.

GUPTA: So, quite a few operations.

C. MCCOY: Yes, I have.

GUPTA: How are you doing?

C. MCCOY: Oh, I'm doing great.

GUPTA: Here's where it gets a little bit difficult. Helen, the older sister, 82 years old, also had a hip replacement, but now she's in the intensive care unit with problems with her heart and problems with her kidney, as well.

HELEN, PATIENT: Doing the best I can.

GUPTA: Yes?

HELEN: Yes.

GUPTA (voice-over): The three sisters have had more than 13 operations over the years costing close to $250,000. I asked Carolyn, is it worth it?

C. MCCOY: I say if you pay your premiums, you ought to get the same service that the younger person does.

THORPE: There's no change in any of these pieces of legislation that would take the power away from the patients and the decision ultimately making whatever choice is best for them.

GUPTA: Dr. Radhakrishnan Nair is Helen's doctor.

(On camera): Should there be a cutoff at some point to say look, this person is just too old?

DR. RADHAKRISHNAN NAIR, ORTHOPEDIC SURGEON: The cutoff needs to be decided based on general health, the ability to go for surgery and ability to withstand surgery.

(END VIDEOTAPE)

GUPTA: I can tell you, as much as we talk about the policy, as much as we talk about the number surrounding health care reform, a question that keeps getting asked of us, what if this were your mother, what is this were your grandmother? It's the art of medicine. Back to you.

NGUYEN: Well, some Democrats say the public option is essential to health care reform. But it's been a sticking point for many conservatives. So is the White House ready to cave in to get a deal done?

(COMMERCIAL BREAK)

COLLINS: On Wall Street, the Dow fell last week, snapping a string of four straight weekly gains. And this week, let's just start with more of the same as we listen to that opening bell right now.

Susan Lisovicz is at the New York Stock Exchange with a preview of today's selloff. Hey there, Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: Hi, Betty. Yes, I'm about to put on my hard hat because we are expecting a big drop at the open. The sellings began on Friday, accelerated in Asia overnight. China's Shanghai Composite plunged nearly 6 percent. European markets are down 1 percent to 2 percent right now.

Here at home, we're seeing some red arrows at the open. All of this comes even though another key economy is pulling out of recession. Japan, the second largest economy in the world, said its GDP grew last quarter, but not as fast as expected and consumer spending there still remains fragile.

That same problem, of course, big problem here. It's hitting Lowe's. The nation's second largest home improvement retailer says its quarterly earnings fell nearly 20 percent. Sales fell, too. They missed the estimates on Wall Street. The company blames bad weather and weak consumer spending. Lowe's shares are lower by nine percent right now.

It's no wonder many people aren't spending because so many of us are having a hard time paying the bills we already have.

Capital One financial says the percentage of loans at least 30 days late rose in July following four months of improvement. Capital One shares not seeing a stock price right now, they were down 5 percent in the pre-market. And checking the numbers, the Dow Industrial right now down three percent. The Dow Industrials right now are off 1.5 percent, down 145 points. The NASDAQ is down two percent, and a quick follow-up, Betty, to something we were talking about quite a bit on Friday. The impending failure of Regional Bank Colonial.

NGUYEN: Right.

LISOVICZ: Over the weekend, as we were reporting rival BB&T agreed to buy it. Beyond that, four other banks also failed, bringing this year's total to 77. So there's still a lot of fear in the air and it's playing out quite dramatically in the first minute of trading here at the New York Stock Exchange.

Betty?

NGUYEN: Seventy-seven. That's almost hard to believe that it's the state of the situation right now.

OK. Thank you, Susan.

LISOVICZ: You're welcome.

NGUYEN: So, it is the make or break month for health care reform. And now it seems the president may give up a controversial part of his plan that would be the public option. It would set up a government-run alternative to private insurance companies. But on "STATE OF THE UNION" with John King yesterday, Health and Human Services Secretary Kathleen Sebelius implied that the White House may be willing to compromise.

(BEGIN VIDEO CLIP)

KATHLEEN SEBELLIUS, HEALTH AND HUMAN SERVICES SECRETARY: I think the president is just continuing to say let's not have this be the only focus of the conversation. Coverage for all Americans, lowering the crushing costs for everyone, making sure that we have new rules for insurance companies. That they can't dump people out of the marketplace if you get sick. That they can't drop your coverage based on a pre-existing condition, that you can't be priced out because you're a woman instead of a man and gender discrimination won't be allowed to continue anymore. Those are really essential parts of the new program. Along with choice and competition, which I think we'll have at the end of the day.

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: But let me just quite simply -- so the public option is not a deal-breaker from the president's standpoint?

SEBELIUS: Well, I think there will be a competitor to private insurers. That's really the essential part, is you don't turn over the whole new marketplace to private insurance companies and trust them to do the right thing. We need some choices. We need some competition.

(BEGIN VIDEO CLIP)

NGUYEN: Well, dropping the public option would make the bill an easier sell to conservatives, but some Democrats think it would be a sellout instead.

(BEGIN VIDEO CLIP)

REP. EDDIE BERNICE JOHNSON (D), TEXAS: Without the public option, we'll have the same number of people uninsured. If the insurance companies wanted to insure these people now, they'd be insured. The only way that we can be sure that very low income people and persons who work for companies that don't offer insurance can have access to it is through an option that would give the private insurance companies a little competition. The private insurance company has been in charge so long that I think they feel that nobody else ought to be able to do it.

(END VIDEO CLIP)

NGUYEN: So, instead of the public option, the White House could end up supporting insurance co-ops. Now consumers would pay into them and the members would run them. And those co-ops wouldn't be run for profit.

All right. So, more opportunities for lawmakers to hear questions from the people today about health care reform. A number of town hall meetings are going across the country. And Republican Congressman Joe Barton, well, he has a pair scheduled today in Texas. Democratic Congressman Allen Boyd is holding three, in fact, in Florida. Fellow Democratic Congressman Tom Perriello has one tonight in Virginia.

And I want to give you a live look at a town hall meeting with Senator Arlen Specter in Philadelphia. Specter's meetings in particular have gotten pretty rowdy. So we're going to continue to monitor this one for you and bring you the latest.

President Obama made his case for health care reform at his own town hall meetings over the weekend. But, today, he is switching focus to those who have served our country. He's in Phoenix to address the National Convention of Veterans of Foreign Wars. And we do expect to hear from him a little bit later. He's going to be talking about security and U.S. Foreign Policy. We're going to have live coverage of that speech scheduled to get underway at 2:00 p.m. Eastern.

Underway right now, California, it is burning with nearly a dozen wildfires across the state. Some of the biggest, that would be the Lockheed Fire, which is around Bonny Doon. It's about 65 percent contained. According to the "San Francisco Chronicle."

Now, the Associated Press says it has burned about 10 miles of land, and some people are being allowed back into the homes in that area after mandatory evacuations. And the AP also says the La Brea Fire in Santa Barbara County is about 64 percent contained. It has burned about 135 square miles of timber and brush. Officials believe it started at an illegal camp run by Mexican drug dealers.

And farther north, the Yuba Fire is about 15 percent contained. It has burned more than 2,000 acres so far. Officials think it started when a bird flew into a wire and caught on fire.

I don't know how often that occurs, but it's awfully dry out there. So it seems like almost anything could spark a fire.

(WEATHER REPORT)

NGUYEN: Absolutely. All right, thank you, Reynolds.

WOLF: You bet.

NGUYEN: Take you to Taiwan now. More than a week after Typhoon Morakot hit, more than 30 countries and territories have pledged money, helicopters, medication, and other supplies. The storm killed at least 123 people. The death toll, that could climb to more than 300. Yesterday, a U.S. Marine Corps C-130 cargo plane flew into Taiwan to unload plastic tarps for shelter. Also the USS Denver is expected to arrive today with additional humanitarian aid and water purification capabilities. Now clean-up efforts are already underway in many villages and towns hardest hit by Typhoon Morakot.

CNN's senior international correspondent John Vause is in Linbian, Taiwan, and he shows us the damage left behind in what many towns are up against as they try to recover.

(BEGIN VIDEOTAPE)

JOHN VAUSE, CNN BEIJING CORRESPONDENT (on camera): This is the main road of a town called Linbian. It's now actually more of a muddy river. And the people who live here are now starting to dig themselves out and clean up. Now, keep in mind, it's been more than a week since Typhoon Morakot. The residents who live here say at its worst, the mud was about five feet deep. It inundated all of these shops and restaurants and office buildings. They say during the typhoon, a nearby dike was breached and the flood water has rushed in. It happened about 20 or maybe 30 minutes. Take a look at some of these piles of debris coming from inside these buildings. There's furniture here, there's the kitchen sink. Even just here, there is a child's rocking horse.

The army has come here to help with the clean-up. There are hundreds of volunteers, as well. And across Taiwan, clean-ups like this are now underway in many parts. But in some places, in particular, those mountainous, isolated villages, the clean-up will have to wait, because work crews simply can't get in.

Now, despite all of this devastation, all of this damage, the people who live here tell me they consider themselves lucky because no one died.

John Vause, CNN, Linbian, Taiwan.

(END VIDEOTAPE)

NGUYEN: Old Senator Jim Webb is in Bangkok right now after holding meeting with Myanmar's junta chief, and that nation's pro- democracy leader. While in Myanmar, Webb was also able to secure the release of an American jailed for swimming uninvited to see Aung Sang Suu Kyi, who is under house arrest. Webb called the actions of John Getter, there you see right there, regrettable. Webb also spoke on CNN's AMERICAN MORNING just a short time ago about his meeting with Aung Sang Suu Kyi and U.S. sanctions on Myanmar.

(BEGIN VIDEO CLIP)

SEN. JIM WEBB, (D) VIRGINIA: That was my impression that she does not oppose the idea of in some way lifting some of the sanctions.

Again, it's a very delicate. She has her own viewpoints. But I do believe personally that lifting sanctions, as long as you address these other issues, as a way to have more contact with people of Burma, and also allowing the people Burma to see the outside world. And that's extremely important.

(END VIDEO CLIP)

NGUYEN: Well, Webb says he understands that the league of Southeastern Asian Nations may petition Myanmar's military rulers for amnesty for Aung Sang Suu Kyi.

Pakistan making progress in its fight against the Taliban. U.S. Envoy Richard Holbrooke speaks exclusively to CNN about this part of the terror war.

(COMMERCIAL BREAK)

NGUYEN: Three children are among at least six people killed today in a Pakistan car bombing. The attack took place at a gas station outside Peshawar, the capital of the northwest frontier province. Now that region has been the center of fighting in recent months between Pakistani forces and Taliban militants. President Obama's special envoy to Pakistan, Richard Holbrooke is in Pakistan today. And CNN's Cal Perry sat down for an exclusive interview with Holbrooke. Cal joins me now live from the capital of Islamabad.

All right, Cal, first, to the Taliban. Did Holbrooke seem to think that the Pakistani government is correct when they say they have the Taliban on the run?

CAL PERRY, CNN INTERNATIONAL CORRESPONDENT: He does. He thinks the Taliban is on the run. He thinks the death of Baitullah Mehsud, the Taliban leader is certainly key to that effort, but there is an inherent, sort of contradiction that I picked up on when I asked him the question about it, because we've heard that this swat offensive has been a huge success, but at the same time, we've had three separate attacks in the past 24 hours.

Take a listen to what he had to say.

(BEGIN VIDEO CLIP)

RICHARD HOLBROOKEE, U.S. SPECIAL ENVOY TO PAKISTAN AND AFGHANISTAN: I don't think there's any question that the operations have been a success, and combined with the removal of Baitullah Mehsud, the worst of the worst of the Pakistani Taliban from the scene. I think we've seen a great improvement of the security situation. At the same time, we don't know yet whether this is the destruction of the Taliban and swat, or just their dispersal. It'll take a while to find that out.

(END VIDEO CLIP)

PERRY: So, if they haven't run the Taliban completely out, the question is, of course, where has the Taliban gone? Now to south Waziristan, which is just to the north of this tribal region we have been discussing for so long where Baitullah Mehsud was killed, that's where the Taliban has its seat of power.

And I asked Holbrooke, what do you do? How do you clear them out of there? Can you tell the Pakistani army to put boots on the ground? He told me he doesn't really have that role. That's not his role to play here. He's in an advisory role, but certainly the next question is, what goes on next for the Pakistani military? Do they go into these very difficult tribal areas and clear the Taliban out once and for good?

Betty?

NGUYEN: All right, Cal, Richard Holbrookee, also the U.S. Envoy to Afghanistan. And with the elections just really right around the corner, is there some concern about the recent violence there?

PERRY: Well, I think there's definitely concern on the ground in Kabul because we've heard about these security gains. And the Taliban, obviously, likes to time their attacks, these spectacular attacks with major events like the election. I asked Holbrookee in the interview what he thought about the violence, and if he thought it would slow down the elections.

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HOLBROOKEE: Violence during elections is pretty common place in many parts of the world, including other parts of South Asia. That's not the problem. To me, the issue is what kind of an election is this going to be? Will the count be fair? Will it protect the true will of the Afghan people? And above all, will the government that's elected be able to be more successful than has been the case in the recent?

(END VIDEO CLIP)

PERRY: And I asked him, Betty, about the new strategy that he brings to the table with the Obama administration. I asked him is there any chance that U.S. commanders on the ground as they've said will start engaging with the Taliban? Will start diplomatically speaking to the Taliban?

His answer, I thought, was quite surprising. He said if they are willing to lay down their arms, if they're willing to turn their backs on al Qaeda, turn their backs on the violence, he said, there is a way to fold them into the political process. And he said that the Americans would be willing to have that discussion, Betty.

NGUYEN: Very interesting. Cal Perry joining us live from Islamabad.

Thank you.

Well, Afghanistan's presidential election as I mentioned, just right around the corner this Thursday, in fact, only the second in the nation's history. And it will be watched as an indicator of stability.

Last night, President Hamid Karzai joined two challengers in a televised debate. Mr. Karzai's rivals criticized him for alleged government corruption and for not doing enough to stop escalating violence. Now, regarding civilian casualties from coalition strikes, Mr. Karzai pledged to stop NATO from conducting military operations without the government's permission.

Let's take you back to the states now in the mayor of Milwaukee being hailed a hero for saving a woman from harm. But the mayor was attacked. He fought back and winds up in the hospital.

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NGUYEN: In Chicago, it may feel like a holiday today. Nope, it is not. The city is actually cutting back on some services today to save money and help shore up its ailing budget. Public library, city hall, other city offices, well, they are not going to be opened today. And there also will not be regular garbage collection or street sweeping today. Police, fire departments and other emergency services, well, they have not been affected. Let's take you to Milwaukee now. Mayor Tom Barrett is hospitalized this morning after being attacked over the weekend. The mayor was leaving a Wisconsin state fair with family members when he heard a woman screaming for help. Police say the woman was a grandmother trying to protect her 1-year-old granddaughter from a man. When the mayor attempted to call 911, the suspect attacked him with a metal pipe.

The mayor's brother talked about the incident.

(BEGIN VIDEO CLIP)

JOHN BARRETT, MILWAUKEE MAYOR'S BROTHER: Tom stepped up, and did the right thing. He called 911, and tried to calm the situation, protect the grandmother and her grandchild. Tom's efforts protected the woman and the child, his efforts also protected members of our family as well. We're extremely proud of Tom's selflessness and his courage.

(END VIDEO CLIP)

NGUYEN: Well, the mayor had successful surgery yesterday for a fractured hand. The suspect has been arrested.

Well, police here in Georgia, they have located a cell phone that belonged to a woman they think was abducted but where she is, still a big mystery. Investigators believe 38-year-old Kristi Cornwell, you see her right here, was talking to her boyfriend on that cell phone when she was apparently abducted. Now she disappeared while walking down the street from her family's home in North Georgia. More than 100 people and 15 agencies have joined in that search.

There is definitely a lot going on this morning. And CNN crews are in place to bring you all the details. Let's check in now with our correspondent, beginning with Reynolds Wolf in the severe weather center.

Hey, Reynolds.

WOLF: Hey, crazy times here, busy morning. We're watching three tropical systems. One is the first hurricane of the Atlantic season, destined to possibly become the first major hurricane of the season. We'll have more on that coming up.

LISOVICZ: And I'm Susan Lisovicz at the New York Stock Exchange, where we're seeing storm clouds as well over Wall Street. This is despite the fact that we learned the second largest economy, Japan, is on the road to recovery. But investors are worried about the world's biggest economy, and those fears are sparking a global stock market selloff. Betty, I'll put it in perspective in the next hour.

NGUYEN: All right. Thank you, both. And also, ahead, hundreds of gay men tortured and killed in Iraq in recent months. Now many are urging the government to take a stronger stance and save men from the killings.

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NGUYEN: Well, San Francisco is the first city in the U.S. to have an affordable health care program for everyone who wants one. And some are looking at the program as a model for the uninsured on a national scale. Photojournalist Jeff King and Jim Castle shows us one woman's experience in our "Health care in Focus" series.

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UNIDENTIFIED FEMALE: Right in here.

DONNA BOWLING, HEALTHY SAN FRANCISCAN PARTICIPANT: I had mitral valve prolapsed. I was diagnosed with that about nine years ago. After I lost my insurance, I would have to pay out of pocket for everything, 100 percent. It would have been really costly. It could worth costly that I could have afforded. Probably, eventually, I would have died. It was scary. I thought it was really unfair. And just not right, basically, that you should allow anybody to die because they cannot get coverage. They can't get health even though they are trying to do the right thing. That's why I sought out the clinics that are here in San Francisco.

UNIDENTIFIED MALE: Health in San Francisco is a coverage model that provides medical care, hospital care, emergency care, pharmaceutical, laboratory, radiology, for people within San Francisco. Any adult who is uninsured in San Francisco can qualify. How much people are required to pay depends upon what their income is.

BOWLING: In my opinion, much better and more thorough care than I had when I was insured.

UNIDENTIFIED MALE: We have required only a very minimal amount of city general funds to start up $750,000. The rest of the money comes from one of three resources. We receive the state-federal grants, we are receiving money through the employer's spending requirement that requires businesses that have more than 20 employees to spend money on health care, and then finally to participate to this and pay.

We figured out how to decrease the cost of care and use that money to cover a broader set of people. What we're able to do is to supplement all of the money that had been existing to enable people to care for a group of people that they would by and large already care for.

BOWLING: I wish everybody had access to the kind of medical treatment that I get because it's just fantastic.

(END VIDEOTAPE)

NGUYEN: All right. So, if you want to know more about the health care debate, check out the special health care in America's Web site on CNN.com. You can also get the latest from town hall debates, fact checks, iReports and other health care news. All you have to do is go to cnn.com/healthcare. Let's get a look at some of the stories that are happening right now. News out of Japan, the world's second largest economy, may be pulling out of the recession. It didn't do much for the world markets, though. Stock and oil prices dropped sharply today. Economists say lack of consumer confidence here in the United States is making investors nervous across the globe.

The top U.S. commander in Iraq wants more American troops deployed in some of northern Iraq's disputed territories. General Ray Odierno believes the extra troops maybe necessary to prevent the growing number of bombings there. U.S. soldiers with form alliances with Iraqi government and Kurdish troops to help secure the area. Now, the plan, if approved, would affect the security pack that move U.S. troops out of major cities, but both Iraqi and Kurdish leaders seem receptive to that idea.

And a tentative agreement between union leaders and bay area rapid transit officials this weekend preventing a major strike today. The strike would have affected more than 300,000 Monday morning commuters. Bart Union leaders threatened to strike because of new rules they believe would have resulted in a seven percent lost to employees.

ANNOUCER: This is CNN. Your hurricane headquarters.