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Cash for Clunkers Ending Monday; Stunning Allegations from Former Bush Cabinet Member; Iraqis Blaming Their Own; Existing Home Sales in July Posted Largest Monthly Increase in a Decade; Arrest Warrant Issued for Reality TV Contestant; Labor Day Deals Galore; Murder and Dismemberment Case Shocks Phoenix Residents
Aired August 21, 2009 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BETTY NGUYEN, CNN ANCHOR: All right. You heard it. The program has been good for car buyers, makers and dealers but all good things must come to an end and this one ends on Monday.
With the money running out, the government is pulling the plug on the widely successful "Cash for Clunkers" program. So what do you need to know about it? We are going to take you to the source. Stephanie Elam has the breakdown from the New York area there and she joins us now, live.
Stephanie, all right, time is running out. So, if you want to get in on the action, what should you do?
STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Yes, Betty, this is a big one for people who have been thinking about whether or not this is right for them. If you got a gas guzzler, time is really running out to get some cash for that clunker. So the government said they're going to shut down the $3 billion program on Monday because it's almost out of money.
Auto dealers have to submit all of their paperwork by 8:00 p.m. Eastern on Monday to guarantee it will get paid back for vouchers worth up to $4,500. some will stop offering the deals on Sunday to make sure they have enough time to get their paperwork done. So far more than 450,000 clunker deals have been recorded. That's worth $1.9 billion in rebates. Betty.
NGUYEN: OK. So, are we seeing a huge rush this weekend? I mean, do you expect people to really to just run out because they know that that deadline is ticking.
ELAM: You know, that's what the dealers are banking for. They are really gearing up for that. One tells us he's planning a big advertising push as he doesn't want to leave any dollars on the sidelines, but as you already know, a lot of dealers have been frustrated.
In New York, hundreds pulled out of the program altogether. They said the government was taking too long to pay them back for these vouchers. The Transportation Department is adding more workers to try to speed up dealer reimbursements but for some dealers they just thought it was too big of a gamble, Betty and they didn't think the odds were in their favor. NGUYEN: So for those who still want to take advantage of this program, specifically, Stephanie, what should they look for?
ELAM: Well, there are some things that people really need to be aware of. Some customers are being asked to sign a form saying you'll pay back the voucher money just in case the government reimbursement doesn't come through. There are also reports that some dealerships are asking to wait to take their new car home until the government approves the paperwork.
For the record, that's not allowed. If you do have a clunker deal, they have to give you the car immediately, right then. Remember, to qualify, your old car has to get 18 miles a gallon or less and it can't be more than 25 years old and need to have owned it for at least a year. Those are the rules, Betty. But if your really think about doing it, get on it. Got to get out there this weekend.
NGUYEN: Absolutely, time is running out and knowledge is power. So thank you so much, Stephanie. We do appreciate it.
ELAM: Sure.
NGUYEN: OK. So what kind of deal has "Cash for Clunkers" been for the dealers? We're going to be talking to one of them in just a few minutes.
Meantime, though, we want to know what you think about "Cash for Clunkers." Go to our blog cnn.com/betty for today or you can find me on Twitter, Facebook at bettynguyencnn. Lots of ways to reach out, share your thoughts because I'm going to be reading them on the air.
In the meantime, though, a stunning new charge from inside the Bush White House. Listen to this, former Homeland Security chief Tom Ridge says Bush cabinet members pressured him to raise the nation's terror alert level. In a new memoir, he says the pressure came just before the 2004 presidential election. Ridge says he and others objected to the arguments and the alert was not raised. The former security adviser denies these claims and says politics never played a role in the debate.
(BEGIN VIDEO CLIP)
FRANCES TOWNSEND, FMR. BUSH HOMELAND SECURITY ADVISER: Tom Ridge knew very well that I greed with him that I didn't believe there was a basis to raise the threat level, but I knew there were others in the Homeland Security Council that did believe that and we agreed that we would have the conversation. By the way, what Tom Ridge's book doesn't say is that most eloquent case for not raising the threat level was not made by Tom, in fact, it was made by secretary of state at the time, Colin Powell and Bob Mueller at great personal risk. Remember his boss John Ashcroft was advocating to raise it based on the facts of the intelligence. Bob Mueller himself made an eloquent case not to raise it.
(END VIDEO CLIP)
NGUYEN: Well, Ridge says his belief that politics fueled the debate helped convinced him to resign from his post.
So far no health care measure has been debated in the full House or Senate. Still taking shape in committees but we do want to give you a quick comparison of legislation being considered. So here's how it breaks down. Let's take it to the House first, the proposed bill there. Consumers could choose among an array of health insurance plans, including the public option or the government-run program.
Now the plan would mandate legal residents to obtain health insurance. It requires companies to provide health coverage for workers or pay into a federal fund to provide health coverage. Well, some companies with small payrolls could be exempt.
Take you to the Senate now. A bipartisan group in the finance committee is considering a bill that is expected to include this. No government-run option, but it may include proposals for private, non- profit co-ops where individuals without coverage could join. The bill is not expected to include mandates but a penalty for businesses that don't offer coverage.
Health care reform and illegal immigration, both topics stir passionate debate and one of the angriest claims though of health care reform opponents is that millions of illegal immigrants will be covered at taxpayer expense. Well, that is not true under the Obama plan and that reality fuels yet another debate.
CNN's Cheryl Jackson explains.
(BEGIN VIDEOTAPE)
CHERYL JACKSON, CNN CORRESPONDENT (on camera): Of course, all illegal immigrants are not Hispanic, but they do make up the largest illegal population. and like most in society, the Hispanic community is divided over whether or not they should be considered in health care reform. And divided, they say, over the costs. They are not always calculated in dollars and cents.
CASSANDRA SENIOR, UNINSURED: It's not as easy as everyone thinks it is. It's not will power. You need groups like this.
JACKSON (voice-over): Cassandra Senior is a recovering drug addict. She is getting free treatment at Health Care Alternative Systems in Chicago. Most of the patients here are Hispanic and has not insurance.
SENIOR: You don't have the money when you come out of it to pay for these services.
JACKSON: Marco Jacomi (ph) runs the mental health center.
MARCO JACOMI (ph): This room. This is domestic violence room.
JACKSON: At the Erie Family Health Center, Dr. Frank Castillo sees dozens of patients every day. He doesn't know who is legal or who is not.
He says he looks into their eyes and not into their backgrounds.
DR. FRANK CASTILLIO ERIE FAMILY HEALTH CENTER: I just take care of the person in front of me who comes to me for help.
JACKSON (on camera): 84 percent of the patients here are Hispanic and 40 percent are uninsured. Now no one here is asked about their immigration status. They're treated regardless of that status and regardless of their ability to pay.
(voice-over): Castillo is on one side of the debate of illegal immigrants and health care. Jessie Ruiz is on the other.
JESSE RUIZ, ILLINOIS STATE BOARD OF EDUCATION: Before we start creating any perverse incentives, and worrying about undocumented immigrants, we have to worry about the citizens who are here today and the legal residents.
JACKSON: Ruiz supports Obama's health care vision and thinks those in the country illegally should not benefit. But he says when life or death is an issue - there is a solution.
RUIZ: The great thing about our nation is we do have laws that we don't allow people to die on our streets.
JACKSON: Activist Esther Sciammarella says everyone, regardless of status should get treatment for contagious diseases.
ESTHER SCIAMMARELLA, HISPANIC HEALTH COALITION: It's like H1N1, (INAUDIBLE) pandemic, we need to consider everybody.
JACKSON: Senior who is now drug free says any type of medical treatment for the uninsured benefits everyone.
SENIOR: You have people out there who are stealing, you have people out there who are robbing. You have people out there who are committing all sorts of crimes to try to feed their addiction and the society is paying for it, whether they realize it or not.
JACKSON (on camera): Obama says he would like to include the children of illegal immigrants in health care reform because they're going to play on the same playgrounds and going to school with other children, making the possibility of spreading disease very high. There are several hundred thousand children in this country illegally.
(END VIDEOTAPE)
NGUYEN: Cheryl Jackson reporting there. Cheryl also says according to the latest census figures, some six million uninsured adults are illegal immigrants. So if you want to know more about the health care debate and how the reforms could affect you and your family, check out our special health care in America section at cnn.com. You can get the latest from town hall debates, fact checks and i-report and other health care news. Just go to cnn.com/healthcare.
All right. A lot of folks getting excited about the weekend, but for some you may not want to head out to the beach. Jacqui Jeras is watching that for us. Hey, Jacqui.
JACQUI JERAS, AMS METEOROLOGIST: Hey, go to the beach if you want to go to the beach and see the big waves, just don't get in the water. And that's the big thing we're worried about. And yes, it has to do with Hurricane Bill. This is a strong category 3 storm now, winds 115 miles per hour and you can see that it has been weakening a little bit as it moves west, northwesterly. We'll show you that track and it will show you that we're expecting it to curve away from the U.S. and head up towards the Canadian Maritimes but it is going to be making a close approach and it's bringing in some huge swells.
So, some very big waves are going to be pushing into the coast and we do have a very high threat of seeing some rip currents and rip currents are just fast channels of water that will pull you away from the coast.
Some things that you can do, by the way, if you do get caught in one of these and you take that risk and you decide you want to swim, don't fight that current. Even an Olympic swimmer can't out swim this thing. You want to try to swim away from it and get, you know, swim parallel to the shore and then make your way back to the beach. If you can't escape, just try floating or threading some water and wait for somebody to rescue you.
You know, 80 percent of all beach rescues, by the way, are from people getting caught in these rip currents. Now, some amazing video. If you haven't seen this, this is just in from our affiliate in Canada. There you can see, this is a tornado in Ontario. There you can see that funnel and all of the debris just swirling around a transformer exploding there. This was in the Woodbridge area. There were at least three tornadoes reported across the area and hundreds of homes had been damaged and one person killed, three others were injured. And also have a lot of damage in the city of Vahn, as well. Just amazing pictures coming there out of Ontario.
Now, we do have a threat of some severe weather here in the U.S. today. Right now, just some moderate rainshowers here across the northeastern corridor but later on this afternoon, you know, it's been so hot and so sticky as that cold front approaches and we could see isolated, severe weather but in exchange this whole trough or this whole front pulling in is going to steer Bill away from the U.S.. So it's kind of a little tradeoff, I guess, so to speak.
Much cooler weather across the nation's midsection for today. If you are trying to travel, you are going to have trouble. Lots of delays. Minneapolis, San Francisco, Dallas, Ft. Worth, those delays getting a little shorter there. We also have some delays in Philadelphia and watch these to spread throughout the northeastern corridor throughout the day.
NGUYEN: All right. Pack some patience as you head to the airport today.
JERAS: Oh, yes.
NGUYEN: Thank you, Jacqui. I want to tell you about this, just in to the NEWSROOM right now. The National Association of Realtors is reporting the largest monthly increase in home sales in 10 years. July home sales surging more than seven percent. Experts say it appears to be the first time that buyers are rushing to take advantage of a tax credit that expires this fall. Again, this report just being released. July home sales up more than seven percent. Susan Lisovicz will have more from Wall Street in just a few minutes.
So, did U.S. combat troops leave Iraqi cities too soon? An American military trainer explains one danger that could lie ahead for Iraqi forces.
(COMMERCIAL BREAK)
NGUYEN: A week of deadly bombings continues in Baghdad. At least two people were killed in one market bombing today. Residents upset over lack of security say the site has been repeatedly hit in recent months. A series of attacks on Wednesday killed at least 100 people and wounded more than 500. There were six blasts in 60 minutes Wednesday. Last night, five bombings struck Baghdad streets in just an hour.
Well, both Iraqis and a top U.S. military commander are criticizing Iraqi security in the wake of Wednesday's bombings. CNN Pentagon correspondent Chris Lawrence has that story.
(BEGIN VIDEOTAPE)
CHRIS LAWRENCE, CNN PENTAGON CORRESPONDENT (voice-over): The families of Baghdad's bombing victims came to collect their remains Thursday after the deadliest day of coordinated attacks all year.
Now, Iraqis are blaming their own.
FALAH HASSON ZEIDAN, IRAQI SUNNI POLITICIAN (through translator): We warned the security forces not to be lax, but those troops didn't carry out their duties.
LAWRENCE: The American commander in charge of training those Iraqi forces admitted -
LT. GEN. FRANK HELMICK, MULTI-NAT'L. SECURITY TRANSITION CMDR., IRAQ: Clearly, there was a lapse of security.
LAWRENCE: The bombs killed nearly 100 people in just two months after U.S troops left Iraq city. The Americans are only minutes away, but must wait until Iraqis asked for help, which may not come until well after.
HELMICK: Did request some intelligence surveillance and reconnaissance platforms and we provided that. They've also requested some medical assistance, which we provided, as well.
LAWRENCE: Some blame Prime Minister Nuri Al Maliki for pushing the Americans out too soon. WESLEY GRAY, FORMER IRAQI ARMY ADVISER: He's telling Iraqi people, hey, I'm the guy that freed you from the bonds of American occupation.
LAWRENCE: Wesley Gray is a former Marine officer who spent more than 200 days living with and mentoring Iraqi forces. He says they can do basic patrols and combat missions, but could fracture if religious tensions rise. Gray says Al Maliki's strategy gives the opposition good reason to make his security forces look ineffective.
GRAY: A disenfranchised Sunni groups have huge incentives to force him to have to go crawling back to the Americans to say, hey look, this guy is weak and he couldn't do it.
LAWRENCE (on camera): The U.S. commander has proposed that American troops do get more directly involved. Not in Baghdad, but up north, the tension between Arabs and Kurds is rising there and General Ray Odierno feels that putting American troops on patrol with them will help those two groups develop some trust with each other.
Chris Lawrence, CNN, the Pentagon.
(END VIDEOTAPE)
NGUYEN: Counting all the ballots in Afghanistan is going to take a few more days. In areas outside of Kabul, though, election workers are dealing with spotty communications and very little electricity. They're counting ballots by hand and on top of that, Taliban militants have declared war on the election. Afghan officials say 26 people were killed yesterday as millions braved their ways to the polls.
(BEGIN VIDEO CLIP)
PRES. HAMID KARZAI, AFGHANISTAN: The Afghan people did rockets, bombs and intimidation and came out to fought. We see what the turnout was. That they came out important, that's great.
(END VIDEO CLIP)
NGUYEN: President Karzai is eyeing a second term, but a runoff is possible. Afghan election officials say we could know the first preliminary results by Tuesday.
Well, doctors' salaries, how do they play into health care reform plans? We're talking to an expert who has a unique perspective on this debate. He's a doctor and a CEO.
(COMMERCIAL BREAK)
NGUYEN: All right. You have to hear this story. In Oklahoma City, prosecutors unveil a shocking case. Yesterday an indictment was unsealed against Eugene Naukum and his wife, Anna, the former director of a child advocacy group called Casa. Well the program helps abused and neglected children. But prosecutors say the couple stole about $500,000 from the agency and spent it on such things as plastic surgery and trips. Prosecutors say the couple hid their spending sprees by having the credit card statements sent to their home and not the office.
Well, August is possibly a make or break month for health care reform and all month we have been talking to different people, directly involved with the issue. We heard from CEOs, free clinics, doctors, lawmakers. Joining us today to talk about how doctors fees and salaries play into all of this reform. The CEO of Johns Hopkins Medicine, that being Dr. Edward Miller, who you're seeing right there. Dr. Miller, thanks so much for being with us today.
DR. EDWARD MILLER, JOHNS HOPKINS HOSPITAL, CEO: Thank you very much.
NGUYEN: Well, tell us about Johns Hopkins. There's a unique plan there and how you're paying your physicians. Talk to us about why you're doing it and how it's lowering the cost of health care for some patients.
MILLER: We pay our physicians a salary. Our salaries are competitive, we try to make sure that we have a full range of services from primary care all the way through gerontology. The problem that we see, of course, is that the insurance industry still pays us on a fee per service basis and doesn't pay us for quality or the care of the population.
NGUYEN: Yes. So that being the case, with insurance companies paying on a fee for service plan, does that really entice other doctors and other hospitals to go about servicing for that plan instead of being on a salary where they feel maybe they're not making as much money?
MILLER: Well, I think right now that's the way the system works. And I believe that if you look at the system overall, fee for service is not a way to take care of the population. Really, what we're interested in is caring for a population of people, trying to keep those people healthy and well. And paying for a fee for service, you'll just do more and more procedures.
NGUYEN: But doctors may complain and say, look, I can go else where and make a lot more money and also treat people. So how is your plan, the salary-based plan compensating them? I mean, is it compensating them maybe as equally as another hospital on a fee for service plan?
MILLER: Well, I think it is. As we look across the country at various academic health care centers. Our salaries are competitive. We don't lose people because of salary differentials. There is also a lot of trying to care for a significant number of people that are uninsured, as well. That come into our system and we care for them. There's a certain degree of satisfaction that goes with that, as well.
NGUYEN: And why did your hospital choose a salary plan? What was the reasoning behind that?
MILLER: It goes way back to the early foundations of Johns Hopkins in the early 1900s when the discussion was, should we be in private practice or salaried and we decided it was important for an academic health care center not only to take care of patients, but also to do research and teaching and that's where the salary piece came from.
NGUYEN: But is it even feasible as we look at this reform to have other hospitals do that, if as you well pointed out, the insurance companies pay on a fee for service plan. I mean, wouldn't you think that you have to change the way the way the insurance pays, as well?
MILLER: Yes, I would think if insurance are to pay for health and wellness, we would be able to do that. And you can do that if you pay a per premium per member per month. And the insurance companies can do that right now.
NGUYEN: All right. And any other concerns or maybe advantages you see with this reform that are either good ideas or just really bad ones that shouldn't even be considered?
MILLER: Well, I think one of the issues of trying to level the cost across the country. The cost of delivering care in Minnesota or Grand Junction is not going to be the same as delivering the cost in New York City...
NGUYEN: Sure.
MILLER: Baltimore or Washington.
NGUYEN: That is a very good point. All right. Dr. Edward Miller, CEO of Johns Hopkins, we do appreciate your time and insight today. Thank you.
MILLER: Thank you.
NGUYEN: And if you want to know more about the health care debate and how the reforms could affect you and your family, check out our special health care in America section at cnn.com. You can get the latest from town hall debates, fact checks, i-reports and other health care news. Just go to cnn.com/healthcare.
All right, as shoppers head into the final weekend of the "Cash for Clunkers" program, auto dealers wait for reimbursement from Uncle Sam. Some of them haven't even received a dime. We're going to hear from one dealer who said he sold 900 cars in the rebate program and the government only paid him for three.
(COMMERCIAL BREAK)
ANNOUNCER: Live in the CNN NEWSROOM, Betty Nguyen.
NGUYEN: The government putting the brakes on the "Cash for Clunkers" program. The popular rebate program will end Monday night. Not soon enough for some auto dealers, though. They complain that the government has been slow to reimburse them. Joining me, Vince Sheehy, president of Sheehy Auto Stores.
And, Vince, you know, I was just talking to you during the break and we said that you sold 900 cars so far under this program and then paid for three and you got approval for eight and why haven't you gotten your money back, your reimbursements?
VINCE SHEEHY, SHEEHY AUTO STORES, PRESIDENT: Well, I think there are just huge organizational issues within NITSA (ph) and I think the program started with -- the program was rolled out on July 1st and the rules weren't written until July 24th. So they were playing catch up from day one when 24 days worth of deals hit the system and they just never had a chance to get organized and for whatever reason they've been unable to get organized, even as we sit here today.
NGUYEN: Yes, in the meantime, you're owed some $4 million. Have you been in contact with the government? What are you hearing from them?
SHEEHY: It's very hard to touch base with the government. We have our people with questions that we could be on hold for several hours before we get a response. So, we're hearing very little. We had a few claims that had been rejected. Most just say under review and have been under review for two and three weeks.
NGUYEN: Really. And meantime, while these are under review those buyers have taken off with the car. They're driving it right now and say it does get rejected officially, you're stuck with a vehicle that's been driven.
SHEEHY: Yes. If we have a lot of claims that end up being rejected and we don't get paid for, that's going to be a mess. I'm still optimistic it will get resolved, but at this point, we could have vehicles with a lot of miles on them that we have to work out some kind of alternate resolution.
NGUYEN: All right. But the tradeoff here, Vince, is that you have gotten an lot of business because of this program, no doubt, right?
SHEEHY: This has been huge. Clearly, part of the program here is the success is beyond people's expectations. I actually think that we're closing in on probably close to that 750,000 vehicle number that used up the entire $3 billion. That has been beyond my expectations every step of the way on the program.
NGUYEN: So, would you say despite the fact that you're still owed $4 million from the government and reimbursement, you would still call this program a success?
SHEEHY: The program is a wild success and certainly the most obvious form of stimulus that we've seen out of the government this year. The organizational issues should have been, should have been resolved, should have been easier to handle, and should not go against the benefits of the stimulus program.
NGUYEN: Are you afraid at all that even if these buyers are approved, you get reimbursed, are these buyers ready for that kind of investment? Or are they just joining the bandwagon because they think they are going to get a rebate and maybe a car will cost a little bit less? But these could be the same people that may have gotten into some financial trouble, and a lot of us are watching this recession and how people have gotten behind on the bills. Are you worried about that?
SHEEHY: That is a great question. We thought we'd have a lot of marginal customers coming in on this program. In fact, it's the exact opposite. These are mostly high-quality customers who simply have held on to their cars for a long time. So, that coupled with the fact that the banks are all much tighter on their credit approvals. So, they're not loaning money to people who they don't think can pay them back. I don't think that is an issue with this program.
NGUYEN: All right. Very good. So, time is running out. Are you continuing it through the weekend? Because the deadline is on Monday.
SHEEHY: Deadline is Monday, and we'll roll right through Saturday night. So, get in this weekend because it's all over Monday, but Monday is just going to be a paperwork day for us.
NGUYEN: Gotcha. Got to make sure you get that paperwork in because you may be rejected, or at least some people may be rejected. Take another couple weeks to figure that out.
All right, Vince. Well, good luck to you. I hope you get the $4 million. A lot of people come in and it just spurs the economy a little bit more. Thanks for spending a little time with us today.
SHEEHY: Thanks very much.
NGUYEN: On the blogs this morning. We have been asking you today, what do you think of the Cash for Clunkers program? Is it a success? Should it have even been started in the first place?
Let's go to our NEWSROOM blog right now. Paul says, "I think this is will be the most effective use of stimulus money to date, although I think the funding should be continued for at least another 45 days and a similar effort implemented in the housing industry." Yes, some people have taken fact with the issue that it is just one industry.
J.R. Walker says, "I have for four years driven fuel-economical -- econom -- economical! There we go. I couldn't get that out -- economical autos. "Now, I'm asked to pay tax for those who have not been responsible." So, not very happy with that one.
Let's go to my Facebook page and see what people are saying there. Ted Ingram says, "It's a good program, but the dealers are not being paid." We just heard one of those dealers.
And then on Twitter very quickly, GlenSC says, "It was a very bad idea. They should not allow that to happen again and only focus on one industry." And we're getting some complaints about that. As you heard from Vince Sheehy, an owner of an auto dealership, he says, hey, it's been a huge success, a wild success. Now just a matter of getting the paperwork through and reimbursements back. So, thank you for your comments today. Of course, we'll have more questions for you next week.
In the meantime, though, we have some big news on the nation's housing crises. Just minutes ago, we learned that existing home sales in July posted the largest monthly increase in the last ten years. Much of the credit is being given to first-time home buyers taking advantage of a temporary tax credit. It is the fourth straight monthly increase, and that's raising hopes that the crisis may be loosening its grip.
Well, people may be buying houses, but cash-strapped Americans are staying away from nonessential items. New numbers from one of the nation's biggest specialty retailers says that trend is a problem. Susan Lisovicz is on the floor of the New York Stock Exchange with details on Gap.
Hey, Susan.
SUSAN LISOVICZ, CNN CORRESPONDENT: Hey, Betty. And it is the nation's biggest specialty retailer, Betty, because not only the powerhouse behind the Gap, but also Old Navy and Banana Republic. And like retailers from all different spaces whether it's luxury or discounts, it's having problems making sales.
Gap saw its quarterly sales drop 8 percent. It had trouble, let's be clear about this, even before the recession hit. That actually helped because Gap was clearing, reducing its inventory so it wouldn't have to mark it down as drastically as some of its competitors. But Gap is also reducing its overall size, cutting down on the number of stores. Gap, despite it's cost cutting efforts, still saw its overall profits decline but not as much as sales, and that's another common theme that we have seen with retailers.
Gap shares are actually up 3 percent, but then, again, so is the overall market, Betty, with the great numbers we got from the housing market at the top of the hour. Betty?
NGUYEN: All right. So, retailers, including Gap, are really being creative and trying to connect with customers. I guess they have to in this day and time.
LISOVICZ: No question about it. That's why Gap embarked on a very big and unusual promotional campaign.
Bobby, let's show our viewers what's happening here. For the first time in the NYSE history, we have a casual Friday. Traders are allowed to wear blue jeans, specifically Gap with skipping out its promotional 1969 jean, which retails, well, at $69. About 1,200 traders took them up on the offer. So, that's about $84,000 if you do the math, Betty. This is the first time ever in 200 years that we have a casual Friday here.
Gap is a listed member, so, this is something that NYSE will do occasionally and, you know, it's going down sort of like free beer. A lot of them took it up. And I should say it's kind of a joy for reporters, too, Bobby. I have my own jeans on today.
NGUYEN: All right! Check you out. But these aren't Gap, though, right?
LISOVICZ: No, they're not. No, they're not. But it's just a luxury not to wear the typical pinstriped suit, and I think that's what a lot of the traders here are also embracing. It's very, very conservative. I'm looking through the years at the NYSE dress code and it says from the 1890s that bowler hats were allowed on the trading floor. Just as an example. But the standard here, never a casual work day ever. It's dress slacks, button-down shirts and a jacket. Always.
NGUYEN: It's serious. You're dealing with people's money out there. So, let me ask you, is this an every Friday kind of thing for you, Susan? You're going to be in your jeans?
LISOVICZ: No. No.
NGUYEN: I kind of wanted to join in.
LISOVICZ: Betty, I felt like I did in Catholic school when one day a year you could wear something other than the uniform because you had your picture taken, and that was just the greatest day.
NGUYEN: Ooh, going out on a limb.
LISOVICZ: The greatest day in the school year. Not wearing the uniform.
NGUYEN: Well, enjoy it while it lasts, and I guess we're enjoying the numbers now, too. The Dow up 141 points at 9,491. Susan, take care. Talk to you later.
All right. Right now, a real-life drama for a reality television show contestant. He is the prime suspect in the murder of his ex- wife, a swimsuit model. The all-out search to find him, next.
(COMMERCIAL BREAK)
NGUYEN: A swimsuit model is murdered and now an arrest warrant has been issued for her ex-husband, who is a reality TV contestant. CNN's Erica Hill tells us Jasmine Fiore's mysterious death is raising many questions.
(BEGIN VIDEOTAPE)
ERICA HILL, CNN CORRESPONDENT(voice-over): Early Saturday morning in Buena Park, California, a man looking through a trash bin for recycleables finds a small, unzipped suitcase.
FRANK DISTEFANO, DISCOVERED VICTIM'S BODY: It was partially open, and I lifted it up one time and saw skin. But I wasn't sure and I lifted it up again, the birthmarks -- the marks on the body and everything, I verified it was a body and immediately called 911.
HILL: The body was Jasmine Fiore's.
UNIDENTIFIED MALE: Our preliminary results and findings from the Orange County coroner were that she was strangled.
HILL: Police are now looking for this man. Ryan Jenkins who was reportedly briefly married to Fiore. He and Fiore were last seen on Friday night at a poker game in San Diego, about 100 miles south of where her body was discovered Saturday morning.
On Saturday night, Jenkins filed a missing person's report for Fiore. He hasn't been heard from since.
UNIDENTIFIED MALE: Our fear is that he may possibly be en route to Canada. He was the last person seen with her.
HILL: Jenkins, most recently a contestant on the VH-1 reality show "Megan Wants a Millionaire" is described on the show as an investment banker from Calgary. Police believ he is driving either a black BMW X-5 SUV like this one with an Alberta license plate number HLY 275, or may be in Jasmine Fiore's white Mercedes.
Neighbors describe Fiore as outgoing.
UNIDENTIFIED MALE: She was cool. She was wealthy, she had a good roommate. Her roommate was very friendly. She was friendly to everybody else, and just a shocker.
HILL: A former boss at the modeling agency where she worked in Las Vegas said Fiore seemed to have her head on straight.
KEN HENDERSON, OWNER, BEST AGENCY: She seemed very responsible, she seemed very driven, like focused on just wanting to do, getting into the business but not, you know, wasn't enamored by it.
HILL: Henderson says the last time he saw her, she looked really happy and mentioned she had this great guy. The question tonight: whether that great guy may know something about how Jasmine Fiore died.
Erica Hill, CNN, New York.
(END VIDEOTAPE)
NGUYEN: In other news, attorneys for Casey Anthony are back in court this morning. Want to give you a live picture there. You see Casey Anthony sitting in court. This is in Orlando. She is the Florida woman accused of killing her 2-year-old daughter, Caylee. The defense wants to force the head of a search and rescue group to testify at trial. They're hoping to use the testimony to show Anthony couldn't have disposed of Caylee's body because she was in jail. The defense also wants Anthony's bondsman barred from what she told them about the case.
So, has the recession forced you to drop summer vacation plans? Don't give up just yet. We'll tell you about some good deals for a late summer getaway. (COMMERCIAL BREAK)
NGUYEN: All right. So, you're tired of those staycations? You know, itching to get away for Labor Day but think it's too expensive or too late to plan anything? There may be some really good deals out there for a late summer getaway.
For that, let's go to CNN's Nicole Collins with the scoop. A lot of people listening very closely right now.
NICOLE COLLINS, CNN CORRESPONDENT: Yes, good morning, Betty. That's right, Labor Day is just a little more than two weeks away, so it is not too late and it may not be too expensive for people, either. Travel experts say deals are everywhere you look, and they may pop up where and when you least expect.
(BEGIN VIDEOTAPE)
(voice-over): Labor Day is fast approaching and presenting tempting last-minute vacation opportunities. Experts say travelers can take advantage of new holiday deals being posted every day, every hour.
EILEEN OGNITZ, TAKETHEKIDS.COM: If they decide today or they decide next Friday that they want to get away for Labor Day weekend, they'll be able to find a place within their budget.
COLLINS: How about Mexico, Hawaii, Vegas or London? These destinations provide great discounts on hotels and plane tickets. According to AAA, domestic airfares across the board are at least 17 percent lower than last year.
GEOFF SUNDSTROM, AAA: We probably expect to see a somewhat softer Labor Day than a year ago.
COLLINS: That means the travel industry is eager for business.
OGNITZ: This year, they recognize that if they don't give you a good deal, they're not going to fill their rooms. So, the consumer is really in the driver's seat.
COLLINS: Experts say be flexible. Think less about where you want to go and more on getting a good deal. Don't overlook four and five-star hotels; some are cheaper than usual right now. Book package deals, which are sometimes less expensive than airfare alone. And check Web sites daily.
GEORGE HOBICA, AIRFAREWATCHDOG.COM: United Airlines launched a Labor Day sale, a lot of airlines have matched that. But we may see the regular weekend fares pop up, too, for Labor Day.
COLLINS: That means check back the Wednesday before Labor Day and see if airlines decide to offer regular weekend rates because of low ticket sales.
(END VIDEOTAPE) (on camera): Road trips also a good idea for Labor Day weekend. AAA says gas prices will be down $1.10 from last year, Betty.
NGUYEN: All right. So, very quickly. Hottest deals, and what destinations are they for?
COLLINS: Well, Mexico is great right now, obviously. Swine flu put a damper on their tourism industry and Hawaii is also very good, especially from West Coast destination. And if you look at some specific airlines, they're offering great deals right now. Southwest as low as $59 one way, and we saw an American Airline one way between New York and Los Angeles, $109, Betty.
NGUYEN: Oh, my goodness. That is fabulous. All right. I have to book some trips. Thank you so much for that. Appreciate it.
Let's take you now to Jacqui Jeras. If you are thinking about booking a trip, you want to figure out where the stormy weather is, and she is watching all that. Hey, Jacqui.
JERAS: Hey. Yeah, you know, Betty, it's one of the last weekend of summer, right? People want to get out there and hit the beach and have the last hurrah. Unfortunately, the weather is not going to be too great for two reasons. One, we've got our cold front moving through, bringing a lot of wet weather across the East and, number two is that a very high threat of rip currents. And that is all due to Bill.
The 11:00 Eastern time advisory is in a little bit early. This is new information on the latest for Bill. You can see those winds, 115 miles per hour, and it's holding steady as a very strong Category 3 storm, and you can see that direction moving northwest at 18 miles per hour. So, we are seeing more of that northerly pull continuing to take shape.
Here's the updated track, and this looks very much the same. You can see it is staying very strong as a Category 3 storm and then curving away. That closest approach up around the Cape is going to be on Sunday, and it could even last into early Monday morning.
Now, how is this going to be impacting you? Well, we will see some very big surfs, and these are the breaker waves we're talking about. You're not going to see 15 to 20-foot waves on the beach, but you'll see them out there. What that will do is increase the threat of rip currents, and that means you could get caught out there in that water, that fast channel of water that moves you away from the coastline.
(WEATHER REPORT)
NGUYEN: I was delayed last night coming into Atlanta. Jacqui, thank you so much.
Coming up tomorrow morning right here on CNN, I will be talking about health care. We have a special at 9:00 a.m. with the best of the town hall discussions. You don't want to miss that. Plus, President Obama and family head to Martha's Vineyard for vacation. Want to show you how the town is preparing for that.
And my co-anchor T.J. Holmes interviews Chris Rock and Nia Long. They have a new movie coming out called "Good Hair." We'll show you all about that. That is tomorrow, "CNN Saturday Morning," 6:00 a.m. to noon. We hope you're there.
In the meantime, though, in Phoenix. A house of mirrors and three days of brutal torture. We're going to tell you about an arrest that has shocked even crime-hardened police officers.
(COMMERCIAL BREAK)
NGUYEN: In Phoenix, Arizona, police say they had solved a gruesome crime. A man is tortured for days, killed, dismembered and a woman makes a shocking confession. We get the details now from reporter Marissa Wingate of CNN Phoenix affiliate KTVK.
(BEGIN VIDEOTAPE)
MARISSA WINGATE, KTVK-TV CORRESPONDENT (voice-over): It's a look inside the apartment where police say Terry Neely was mutilated and tortured for three days, all at the hands of 33-year-old Angela Simpson. Then his body dumped inside this trash can and set on fire.
(off camera): Did you know Angela?
BILL RAINWATER, APARTMENT MANAGER WHERE SIMPSON LIVED: Yes. I have known her for a long time.
WINGATE: Did you know she could do something like this?
RAINWATER: Never.
WINGATE (voice-over): Bill Rainwater is the apartment manager.
(on camrea): Just point to us, show us where it happened.
(voice-over): He showed us the door where a witness spotted Neely's wheelchair days after police found his body. So, we took a look inside and found the place a wreck. There was bleach on the countertop.
(on camera): You can see police have been all throughout this abandoned apartment, looking for fingerprints and we found this garbage back here with ashes all around it. Police believe she may have tried to burn the body here.
(voice-over): But that was after police say Simpson pulled out a (INAUDIBLE), hammered a three-inch nail into his brain, stabbed him up to 50 times and beat him over the head with a tire iron. We're told she forced him to watch through a mirror, dismembered him and ultimately sliced his throat. Police say she admitted it.
JOE KNOTT, PHOENIX POLICE: She wanted to pee and she wanted a candy bar and then told us what happened. WINGATE: The victim would drive his motorized wheelchair through the neighborhood. He lived in this assisted care facility nearby. And investigators thought Simpson thought the victim was a snitch working with law enforcement.
(on camera): She thought he was one?
(voice-over): So, she allegedly lured him inside with sex, and then after three days of torture, borrowed Rainwater's car and dumped the body.
RAINWATER: I know she wasn't taking her meds like she was supposed to.
WINGATE: What kind of medince?
RAINWATER: Psych meds.
WINGATE (voice-over): And while police couldn't say if Simpson had diagnosed psychological problems...
KNOTT: Anybody that would do that to another human has mental issues.
(END VIDEOTAPE)
NGUYEN: That story is so disturbing. Coming to us from Marissa Wingate at CNN affliliate KTVK in Phoenix.
Well, from that, to this. A horrifying medical mistake in West Palm Beach, Florida. A baby was born two months early, braindamaged after the mother was accidentally given a drug to induce labor instead of medication to stop premature labor. The family's lawyers said a doctor scribbled an unclear order which led to the mixup. The hospital admits a mistake was made and steps are taken to ensure it won't happen again. Well, the family is suing the hospital. Several doctors, nurses and pharmacists.
(BEGIN VIDEO CLIP)
DAVID KELLEY, ATTORNEY: This is the worst case that I've seen in my 34 years of practice. And, in fact, I believe it calls for a criminal investigation.
(END VIDEO CLIP)
NGUYEN: The family says medical bills for their injured baby topped $3.5 million.
All right, let's get you a little bit of good news, shall we? A Georgia couple has opened their hearts to provide a home for more than 20 special needs kids. Now, others have opened their wallets to help provide the family with a new house. The Murphy family's previous home just got to be too small and had too many problems, so the Keenan Kids Foundation led a campaign, which is a child advocacy group, led a campaign to move the Murphies into a new 7,000 square foot home. (BEGIN VIDEO CLIP)
JOHN MURPHY, FATHER: My heart is filled with joy. I'm overwhelmed. I just can't believe it. People say to me, when are you going to stop adopting? I said, well, when God stops sending them.
(END VIDEO CLIP)
NGUYEN: They now have room for them. The new house includes a transitional wing for the older children with its own living space and kitchen.
I'm Betty Nguyen. CNN NEWSROOM continues with my good friend Tony Harris.
