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New Jobless Claims Has Dropped; Remembering Senator Edward Kennedy; American Killed in Afghanistan; "Discovery" Good To Go

Aired August 27, 2009 - 09:58   ET

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

HEIDI COLLINS, CNN ANCHOR: Here's a quick look now at some of the other stories we're watching right now.

August may become the deadliest month ever for U.S. troops in Afghanistan. A U.S. service member is dead; the victim of a militant attack in southern Afghanistan. 44 U.S. troops have died in the country this month. That's one fewer than last month's total.

The Associated Press reporting New Mexico Governor Bill Richardson will not be charged in an investigation into pay-to-play allegations. The decision not to pursue indictments against Richardson and former aides was made by top Justice Department officials. The ongoing investigation was the reason Richardson dropped out as President Obama's nominee for commerce secretary.

The success of the "Cash for Clunkers" program may be pushing new car prices higher. Dealerships are expected to have a lower inventory over the next few months, meaning higher prices for consumers. Around 700,000 people took advantage of the cash for clunkers program.

The agency that backs banks has been hit hard in the wallet and this hour we should find out just how bad the damage is. FDIC chair, Sheila Bair is taking questions at a news conference and one question sure to be asked, is the FDIC running out of money?

Our Christine Romans joins us from New York now with more on that. Is that even possible? Can the FDIC run out of money?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Technically it's not really possible because the FDIC has a direct line to the United States Treasury and if were to run out of money there would be a $500 billion line of credit with Treasury. They essentially would take open up the check book and take a loan from Treasury and pay it back with interest, something that last happened during the (INAUDIBLE) crisis.

But what it tells you is that there is a failing, a failing bank problem in the country right now, Heidi. Just a few years ago three banks failed in a year. It's very rare to see a bank failure. We had a very healthy banking system. And then last year it jumped to 25 banks and now so far this year 81 banks have failed. And many analysts, Heidi, say many more banks will fail.

You know, the FDIC has a troubled-bank watch list and it doesn't tell you the names of the banks but it tells you how many were on there. Last quarter there were 305 banks on that list; we're waiting to hear from Sheila Bair exactly how many are on it now but many expect hundreds more banks potentially to fail over the next few years.

COLLINS: Really?

ROMANS: That's right and your money is safe in those banks. You're insured up to $250,000 per account and there's no change in that. Your money is safe there. But what it tells you is that some of these banks are facing some pretty tough times and the fed, the FDIC has actually just yesterday loosened some requirements and rules so that private equity firms can take investments and stakes and buy some of these ailing banks because there aren't very many healthy banks out there or the healthy banks aren't in position to be taking up some of these weak ones.

We're going to get a better sense from her of just what the situation is in the banking sector. In terms of running on empty, in 2006 they had $50 billion in their insurance fund, then as you can see from this line graph, that number has gone down to $13 billion right now because of the epidemic of failing banks. They had to use so much of their insurance money.

Remember, they have a direct line to the Treasury so they can tap into that to make sure that you are covered and you are insured and you will be up to $250,000, if your bank were to fail.

COLLINS: Yes, but when you look at that diagram, looks just like a cliff, doesn't it?

ROMANS: Yes, it really does. It tells you how much trouble -- some of these small and mid-size banks have been hammered. And the first part of the problem was all of this home lending that turned out to be such a bust when home prices went down. Now they're worried about commercial lending and that's going to come back to haunt some of these banks.

COLLINS: All right. We'll keep a close eye on that today. Thanks very much, Christine Romans.

ROMANS: You're welcome.

COLLINS: We also want to mention this, a good sign for the economy, in fact. The Labor Department reporting new jobless claims have dropped. There were 570,000 new filings last week. That's down 10,000 from the previous week. The government says the number of people filing for ongoing claims also went down.

Quickly now, let's get a quick check of the Big Board right there. We see, actually, Dow Jones industrial average down by double digits right now. About 65 points to the negative. Resting at 9,479 or so. We'll continue to watch those numbers throughout the day right here.

(BEGIN VIDEO CLIP)

DOUGLAS BRINKLEY, PRESIDENTIAL HISTORIAN: Ted Kennedy was about redemption, reconciliation and reaching across the aisle but over a period of time Kennedy's tenacity and his ability to survive the political cycles was remarkable.

GLORIA BORGER, CNN SENIOR POLITICAL ANALYST: He wasn't only the patriarch of the Senate. He was also the patriarch of that family and I want to share with you something. I found a note when I did this interview with Ted Kennedy that Jackie Kennedy wrote him as a thank you after he took Caroline Kennedy down the aisle. And she wrote to Ted, she said, "on you, the care for youngest brother fell a burden a hero would beg to be spared. Everyone is going to make it because you are always there with your love."

(END VIDEO CLIP)

COLLINS: And today, that love, is returned. In tributes that will be both public and private. This morning Ted Kennedy's family will gather for a mass at their Hyannis Port compound and then a motorcade travels from his Cape Cod home to Boston. Along the 70-mile route the procession will pass sites that meant a great deal to the senator and to his family. It is part of the celebration of his life that gets under way a couple hours from now in Hyannis Port and that's where we find our own Deborah Feyerick this morning.

So Deb, what is the latest from there this morning?

DEBORAH FEYERICK, CNN CORRESPONDENT: Well, here's what we can tell you, Heidi. The family mass will begin at noon and Senator Kennedy is lying in repose in the sunroom in the main house overlooking the water. The Kennedy family is deeply religious and they have often celebrated mass inside the home. It will last about 30 to 45 minutes is what we're being told.

The casket will then be brought outside accompanied by a military honor guard. The family began arriving yesterday including Joseph Kennedy Jr., that's Bobby's son, Maria Shriver, that's Eunice's daughter. They will follow the hearse on the 70-mile route that you mentioned. And there are a lot of varied places throughout Boston that they feel connected to. Places with special meaning.

For example, the motorcade will pass by JFK's house. It will pass by the senator's office building, the federal office building and will also pass Boston Commons and Faneuil Hall. These places meant a great deal to the senator but to his family. Now people are expected to line the route. They are going to honor the senator. Tributes have been pouring in since his death late Tuesday.

Now, Senator Kerry was here yesterday and he really talked about the man, just how, you know, no matter what was thrown at him, he still was able to manage it in a way that had a lot of heart, a lot of empathy, focused on the issues, focused on what was really most important.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D), MASSCHUSETTS: Love people, they love the give and take of politics. They have respect for everybody and, you know, despite all the things that were thrown at him, he always talked about the humanity and morality and the things that were important to people and that is a good lesson for a lot of people in politics to learn.

(END VIDEO CLIP)

FEYERICK: And, so, Heidi, really, the memorial service tomorrow befitting of a man of his stature, almost presidential in nature. Four living presidents will join Barack Obama to pay tribute to this man who meant so much to all of them. And that's really what's so incredible is just how many lives he touched. So, this really is befitting, almost a presidential farewell. Heidi.

COLLINS: Yes, and you bring up a really good point too, Deb, that people might not be aware of. Fortunately and unfortunately, I have been to many an Irish celebration of life and I have an idea that maybe there will be a lot of uplifting moments that we will see as well as those somber remembrances of the senator. Any idea right now what the sense inside the house is?

FEYERICK: Well, you know, that's a really interesting question. It is very quiet here. There's almost a heaviness on the part of the children. You know, those who are the grandchildren really of Joseph Kennedy because there's a sense that Ted Kennedy was one of the last of that generation and now it is their turn, they're the family elders. We're told by a family friend that children are running in and out of the house and dogs are running in and out of the house, but, really, it's just quiet.

Again, when you think of that image, Heidi, that we're told of the senator's casket lying in the sun room, a room just filled with sun overlooking the water, you almost realize that's what he wanted.

COLLINS: Yes, absolutely. All right, we will continue to stay with the story, obviously, here throughout the day today, tomorrow and Saturday, as well. Deb Feyerick, we sure do appreciate that live from Hyannis Port this morning.

In fact, we want to give you a couple more details on that. If you stay with CNN for continuing coverage of the life and death of Senator Ted Kennedy. We will have live coverage of today's motorcade, of course, and then upon arrival, Senator Kennedy's body will lie in repose at the John F. Kennedy Presidential Library and until that memorial service which is set for Friday at 7:00 p.m. Eastern. Private funeral services will be held Saturday followed by his burial at Arlington National Cemetery.

Well, Rob Marciano standing by now in our hurricane headquarters to talk more about tropical storm Danny and also some fires that you are watching, right?

ROB MARCIANO, AMS METEOROLOGIST: Yes, we got a number of things to fire up here, Heidi, including the fire, so to speak. This is the latest satellite imagery run back about 12 or so hours from tropical storm Danny. Winds now gusting to 70, but sustained at 60. So it has strengthened overnight and the center of it,. We kind of noted it right in there, moving along to the western edge of the cloud pattern and this cloud canopy and all the strength of the thunderstorms and most of the heavy winds are north and east of the center. So it's very asymmetrical, almost subtropical in its design but nonetheless, that's good because we want to make it slow to strengthen and, two, it will keep most of the worst weather off shore and right now it's about 450 miles south, southeast of Cape Hatteras.

Here's where we think the forecast track is going to be. The National Hurricane Center. This will be updated, actually might be before this hour is done. If this forecast become a category 1 storm and then pass east of Cape Hatteras early Saturday even tomorrow night as a category 1 hurricane and then accelerating rapidly towards the New England coastline. Right now, eastern New England is in the cone of this forecast path and look for the forecast to bring it there some time Saturday night into Sunday morning. Still, as a category 1 storm.

All right. We got other weather issues on the West Coast. Southern California dealing with a couple of fires. There will be a series of fire burned 1,700 acres and another small fire just outside of Los Angeles started yesterday. That about 20 percent containment and 1,200 firefighters not including the air arsenal that is trying to take these fires down. We have a red flag warning that is up. Temperatures again today are going to be up and over 100 degrees in some spots.

So, that's certainly not helping the cause. Across parts of the western Great Lakes, looking at showers and thunderstorms here, this is all going to kind of get its act together. It's all slowly moving off towards the east. So, regardless of the path of Danny over the weekend, I think especially Saturday and this would include Boston, Heidi, I think it's going to be a pretty soggy Saturday for much of New England. So those services up there in Boston and for a lesser extent down in Arlington will be affected by the weather.

COLLINS: Yes, it sounds like it. All right. Well, Rob, we'll keep our eye on that with you. Thanks so much.

MARCIANO: You got it.

COLLINS: Also I know you are well aware of this. NASA going to try again tonight to launch the space shuttle "Discovery." A leaky valve and bad weather forced them to scrub two other launch attempts this week. New tests of that faulty valve though went well. "Discovery" is now scheduled will lift off just after midnight tonight. Mission engineers will make their final decision during a noon meeting today. We should know more then.

U.S. troops patrolling in dangerous places, attacked again in Afghanistan. Pushing them closer to a grim milestone.

(COMMERCIAL BREAK)

COLLINS: As you know, we always like to hear from you right here at the CNN NEWSROOM. Today we are talking about an interesting topic. A little bit earlier we spoke with our personal finance editor, Gerri Willis about layaway options that are now becoming more available at retailers for back to school items.

Clothes and also the notebooks and everything you need for your kiddos. Wondering what you think, is going back to school getting too expensive? Go ahead and go to our blog at cnn.com/heidi, you see it right here. Let us know, in fact, if you wouldn't mind, how much you spent this year. We can try to do some comparison and see if it really is getting more expensive.

So send us your feedback and let us know if you're having to tighten your belt a little bit more because of the economy. Once again, cnn.com/heidi. We'll offer up some of your thoughts a little later on.

(COMMERCIAL BREAK)

COLLINS: Militants attack a NATO patrol in southern Afghanistan this morning. One American service member is dead in the fire fight. That pushes August closer to being the deadliest month ever for U.S. troops in the country.

CNN's Atia Abawi is covering the story. She's joining us live now from Kabul Afghanistan. Atia, good morning to you.

ATIA ABAWI, CNN CORRESPONDENT: Good morning, Heidi. Yes, a very grim milestone. Last month with 44 U.S. service members killed in Afghanistan and now we see that today, as well, with a few days left in August. This was not unexpected. These high casualty figures. Whenever you have thousands of U.S. Marines and thousands of coalition forces flooding a country to secure, hold it for the elections we did expect the Taliban and the insurgency to go on the defensive.

And they have been successful when it comes to roadside bombs. But although the coalition forces do not give out casualty figures on Taliban deaths, a top international source here in Afghanistan did tell me that the coalition troops have been very successful in killing hundreds of Taliban, but the reason they do not release those figures is because to them it's not a war to defeat, just the Taliban, but it's to secure Afghanistan and, primarily, the mission this summer was to secure and hold areas so Afghans can go out and vote.

And right now we're still waiting to hear exactly what will happen if there will be a new president in Afghanistan or if there will be a runoff in the election. Heidi.

COLLINS: Yes. And that's what we wanted to talk with you a little bit more about. Yesterday you were telling us about the final results of the election not being expected until next week. Any early indications, though?

ABAWI: Well, the independent election commission today has canceled their press conference and they have canceled it for tomorrow, as well. Yesterday they revealed that they have 17 percent of the votes in. President Hamid Karzai in the lead right now. The incumbent, his rival is 100,000 votes short of him.

Again, the president needs 50 percent of all the votes to win and what we're hearing at the moment as President Karzai will keep heading up that ladder because the votes that have come in so far are from northern Afghanistan, primarily going to Abdullah. So he might have already seen all of his votes.

Southern Afghanistan where President Karzai has his supporters, we're still waiting to hear those tallies. So we do expect President Karzai to take a very strong lead. Heidi.

COLLINS: All right. Atia Abawi staying on top of the story for us from Kabul, Afghanistan this morning. Thanks, Atia.

We also want to tell you about this, next month Anderson Cooper takes you inside Afghanistan, live from the battle zone on "AC 360" special report beginning September 7th, only on CNN, the world wide leader in news.

In northwestern Pakistan now, six people are dead and at least seven others wounded in a suspected U.S. drone attack. The strike took place in the tribal region of south Waziristan. The area has seen a sharp increase in the number of aerial attacks by unmanned U.S. drones and the Taliban stronghold is the suspected target. The U.S. routinely offers no comment on reported cross border strikes from Afghanistan. Pakistan complains the attacks have claimed hundreds of civilian lives.

Pirates open fire on a U.S. Navy helicopter off Somalia, the first of an attack like this on an American military aircraft. The Navy says a helicopter was conducting a surveillance flight over a Taiwanese flag fishing vessel, which the pirates hijacked back in April. The helicopter was not hit and no one was injured. The pirates have used the vessel as a base for attacking other commercial ships including the U.S. flag "Maersk Alabama" back in April.

Fighting the flu. It's that time of the year again but this time around, there is swine flu to think about. What are we all supposed to do to deal with the threats?

(COMMERCIAL BREAK)

COLLINS: Today, people who knew Senator Ted Kennedy well and those who knew him not at all, are saying good-bye. First, a private mass at the family compound in Hyannis Port and then a motorcade to Boston where he will lie in repose at the presidential library of his brother, John.

A U.S. service member is dead. The victim of a militant attack in southern Afghanistan this morning. That pushes the U.S. toll to 44 deaths this month, that's one less than last month. July was the deadliest month for U.S. troops in Afghanistan since the beginning of Operation "Enduring Freedom."

For the second week in a row now, we're watching a storm in the Caribbean. Tropical storm Danny has strengthened a bit and is moving northwest now. Forecasters are telling people from the Carolinas to New England to stay vigilant. Keep your eye on it.

So here's a lesson for would-be protesters. Get a permit and don't argue with police. A man confronted health care reform protesters in Brunswick, Georgia yesterday and then faced off with police.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Do I have what? I'm not going to move. And you're not going to arrest me! I don't care.

UNIDENTIFIED MALE: Get him!

UNIDENTIFIED MALE: Put your hands on your back. Now!

UNIDENTIFIED MALE: Put your hands behind your back. Get on the ground and put your hands on your back.

(END VIDEO CLIP)

COLLINS: Yes. probably not going to win that fight. The man was charged with disorderly conduct.

An Iowa farmer finds a unique way to express his unhappiness with President Obama's health care reform ideas. If you're in the Lubbock, Texas area, here's what you might see. The farmer plowed the words 'Say No to Obama' in his field. The farm is located near Lubbock International Airport and it is visible from planes taking off and landing.

I have flown in and out of the Lubbock International Airport many times, believe it or not. I need to get to this story now for your health.

As flu season begins, many of you may be trying to figure out exactly what to do. Which flu vaccine should you get this year? The regular vaccine or the new swine flu vaccine or both. If you do get the flu, how do you know what strain you got?

CNN's medical correspondent Elizabeth Cohen has some answers to all of this in this week's "Empowered Patient." Elizabeth, welcome to you and I bet you did have had a lot of questions this week.

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Oh certainly. And I'm going to answer the second question you just asked first, which is Heidi, do you know which strain of flu you have. That's an easy answer. You don't know. You don't know. The symptoms are the same. You could have H1N1, which is swine flu or you could have regular old flu. Who knows? You could have some other type of virus. There's really no way of knowing unless you go to your doctor and get tested. And a lot of doctors aren't testing because they don't see a reason to go to that expense for testing.

So I just want to clarify that right there. But the other question about what kind of vaccine should you get. This is going to be a complicated year because some people are supposed to get just the seasonal regular flu shots that they get every year. Other people should only get the swine flu shot and some people need to get both.

COLLINS: Both.

COHEN: According to the Centers for Disease Control...

COLLINS: Your sex, your age and all of that...

COHEN: Gender actually not so much, except for pregnancy.

COLLINS: If you're pregnant.

COHEN: Well, yes, but here's the list of people who are supposed to get both. Pregnant women are supposed to get both, anyone ages six months to 18 years old is supposed to get both. Also adults ages 25 and 64 years old with chronic health conditions such as asthma would be an example, diabetes, they need to get both and anyone who is taking care of a baby who is less than six months old needs to get the seasonal and the H1N1 flu shot. The reason for that, Heidi, is that babies that young can not get the shots themselves.

COLLINS: Yes, understood. But there might be a lot of people out there kind of worried about how safe the vaccine is, I mean, it's brand-new.

COHEN: But the swine flu vaccine is brand-new. It's not on the market yet. They'll go on the market mid October and yes I've had a lot of people asked me, do I really want to get something that is brand new.

And so the answer is yes, it's new but it has been tested on a number of people, by the middle of October, it will have been tested on several thousand people, including 3,100 adults and then in addition, 240 pregnant women will have taken the shot in clinical trials and also 1,200 children. So, when you add that up, if you go to get a shot in October, at least you know they have tried it out on other people before. Not tens of thousands of people, but they certainly tried it on some people.

COLLINS: And the results of that testing? I mean, the side effects...

COHEN: So far.

COLLINS: They didn't get sick, they did get sick.

COHEN: They are doing it as we speak and so far we're told that there are red flag side effects. That's what we've been told.

COLLINS: When do you get the shots?

COHEN: The seasonal flu shot, and that's the shot people get every year. You can get that now in many places. So it won't be that hard to find. The swine flu shot supposed to be out in the middle of October, there may not be enough for everyone who wants it. You might want to have to wait until later in the season to get it. COLLINS: OK. Understood. And something a little bit different in your web column this week. You're going to be talking about Senator Ted Kennedy.

COHEN: That's right. We decided because of Senator Kennedy's passing yesterday to focus on the kind of health care that the Senator gave his family, gave his children. He was an incredible "Empowered Patient" on behalf of his children, two of whom had cancer. So if you want to get health care like a Kennedy, go to cnnhealth.com. It is amazing actually the power all of us could yield even if we're not a Kennedy.

COLLINS: Yes, definitely good, good point. All right. We'll be checking that out. Elizabeth Cohen, we sure do appreciate it. Thank you.

And the economy sputters, and the Motor City stalls and a native son offers a jump start. We'll tell you who is giving Detroit the rock star treatment.

(COMMERCIAL BREAK)

COLLINS: Plans have been made for the family and the public to say good-bye to Senator Ted Kennedy. Here's what we know, members of Kennedy's family are holding a private mass at his compound in Hyannis Port, Massachusetts, at noon. The senator's body will lie in repose at his brother's presidential library tonight and tomorrow.

On Saturday, President Obama will speak at Kennedy's funeral at a Boston church and then Kennedy will be buried at Arlington National Cemetery near his slain brothers.

Stay with CNN for continuing coverage of the life and death of Senator Ted Kennedy. We will have live coverage of today's motorcade. Upon arrival, Senator Kennedy's body will lie in repose, as we said, at the John F. Kennedy Presidential Library until the memorial service set for Friday at 7:00 p.m. Eastern and then those private funeral services will be held Saturday followed by the burial at Arlington.

Taking the economy's pulse. Does the U.S. even have one? Today we have new readings on jobless claims and overall economic activity. Susan Lisovicz is at the New York Stock Exchange now with a look at what exactly these numbers mean. Hey there, Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: Heidi, the answer is yes. The U.S. economy does have a pulse. You have to listen very carefully.

COLLINS: Yes.

LISOVICZ: You have to be very quiet. It's very faint, but there is, in fact, some encouraging news that would indicate, yes, that there is a pulse. Why is that? The U.S. economy shrank at a one percent pace in the last quarter. OK, it shrank, it didn't grow. One percent. That's a whole lot better than the nearly 6.5 percent drop we saw in the first quarter.

Why is the economy getting better? Why is it stabilizing? One of the things we've been talking about a lot lately is the housing market, and we got news today from one of the nation's biggest home builders, Heidi. Home builder Toll Brothers says it's seeing improvement in some very important areas like the New York City suburbs. I know you're familiar with them.

COLLINS: Ah-ha!

LISOVICZ: Of interest. Raleigh-Durham, North Carolina, Washington, D.C., parts of Virginia, Connecticut, Florida, Delaware. The company says deposits on houses are up compared to last year. Up about 25 percent.

Still, the company is losing money. It lost nearly half a billion dollars, but the fact is, it is seeing some interest, some growth, and we have seen a trend in the new home sales that we saw that were just reported yesterday, Heidi.

COLLINS: Yes. So, keeping all my fingers and toes crossed, however -- the bad news is, or it could be anyway. When we mix in today's jobless numbers, more than half a million people filing for unemployment claims kind of darkens the picture just a little bit, doesn't it?

LISOVICZ: I would say a lot. You know, when you look at the GDP number, right, this is the greatest economy in the world. And we are the biggest consumers in the world and consumer spending, despite Cash for Clunkers, despite the fact that home prices are so cheap, consumer spending dropped one percent.

Yes, we did have declines in new and continuing jobless claims but, as you said, they are still at very high levels. New claims at 570,000, continuing claims above 6 million. They need to be worked down considerably, and that's why you're seeing some pressure in the three major averages. But, remember, we're coming off a seven-session win streak for the Dow. Heidi?

COLLINS: Yes. Always down on the positive note (ph). Appreciate that. Thank you, Susan.

LISOVICZ: You're welcome, Heidi.

COLLINS: The American Defenders are looking for a home. The Defenders are pro baseball team in Nashua, New Hampshire. Nashua's mayor locked out of their stadium because of $45,000 in unpaid rent and security costs. The city put new locks on the gates and even parked a tractor on home plate.

(BEGIN VIDEO CLIP)

MAYOR DONALEE LOZEAU, NASHUA, NEW HAMPSHIRE: I can't expect the taxpayers to subsidize the cost of running the team, so they need to pay their bills. UNIDENTIFIED MALE: They have been fighting money troubles for a little while, so, you know, just doing what they got to do and the city finally had enough and locked it up.

UNIDENTIFIED MALE: We're going to watch the defenders play and so far no luck.

(END VIDEO CLIP)

COLLINS: Well, the team says they ran out of money because not enough people were coming to the games. They've moved the rest of their home games to New Jersey.

The government's Cash for Clunkers program is over, so, what were the results? Take a look at this. Great news for Toyota, in fact. The Corolla and Camry finished number one and three respectively on the list of new vehicles purchased in the plan. The Honda Civic is number two. And the Ford Focus at number four, and the Ford Escape at number ten were the only cars from American automakers in the top ten.

But, listen to this, American manufacturers held all ten spots on the list of trade-ins. The Ford Explorer was tops. The government says around 700,000 new cars were sold as part of the program. The new cars average 24.9 miles to the gallon while the trade-ins got 15.8. That's a 58 percent jump in fuel efficiency.

Perhaps no American city has been hit harder by the recession and the decline of the auto industry, of course, then Detroit. But a rock star from the Motor City is doing what he can to try to turn things around. CNNmoney.com's Poppy Harlow reports.

(BEGIN VIDEOTAPE)

POPPY HARLOW, CNNMONEY.COM (voice-over): This is no ordinary concert. It's Kid Rock performing at his biggest headline show ever, bringing 80,000 people to his hometown of Detroit. Talk about a city that needs an economic stimulus like that.

KID ROCK, PERFORMER (singing): Bittersweet and brings us to our knees. It makes us who we are in times like these...

HARLOW: Detroit's never seen times like these, but the people of this city have an unexpected patron in Kid Rock. The bad boy from Detroit has become the voice of a city in peril.

(off camera): How long have you had this?

KID ROCK: This? Oh, geez, probably ten years.

HARLOW: You won't leave, will you?

KID ROCK: No, I'll never leave.

(on stage): We've got one more song for you.

HARLOW (voice-over): The downfall of the auto industry hits home for Kid Rock whose father made a living selling American cars.

KID ROCK: It's mind blowing. It's mind blowing to everybody in this town.

(on stage): God bless you all.

HARLOW: In this perilous time, this self-proclaimed son of Detroit is working on more than just his music.

KID ROCK: As I've gotten older, I have just become more in tuned with that and realized how much of the stuff that I'm doing can help people.

UNIDENTIFIED MALE: You look at the impact that he's having here in Detroit in terms of the foundation at Wayne State University, trying to fund music scholarships for kids there. I think he's had a major, positive impact on Detroit, which is something this economy needs right now.

HARLOW: Kid Rock's music scholarship is funded by T-shirt sales from the apparel company he bought out of bankruptcy, Made in Detroit. And believe it or not, his recently launched American Bad Ass Beer? Well, that could be thanked for creating jobs in the state. More than 400 jobs, he says.

KID ROCK: There's no way to get love back or respect if you don't give it first. So, I've always tried to do that, give everything I have to this city and everything...

HARLOW: But battling rampant unemployment, Detriot has problems much bigger than even this larger-than-life rocker can solve.

KID ROCK: It's got to get cleaned up, you know? It has to bring -- you almost need an angel.

(singing): I won't leave 'cause this is my hometown...

(END VIDEOTAPE)

COLLINS: Wow, what a great story. Poppy Harlow joining us now from New York. Obviously, this guy is very, very committed to doing what he can to help out Detroit.

HARLOW: It's true, Heidi. We went there, as you can see, we spent a day with him, and he was setting up for his big headline concert. You know what he talked to me about, Heidi? He talked to me about politics and the corruption in this city, the problem there, and he said, listen, I'm behind Barack Obama's health care plan, but don't we need to focus on the kids across America and in this city that don't have access to healthy food? Isn't that an issue first and foremost? You don't expect that from someone like Kid Rock.

And it really was sort of hard to draw out of him all the things that he's doing for this city. He doesn't talk about it publicly, and didn't want to do the interview at first. It took a lot of convincing. He's relatively soft-spoken when it comes to what he's doing for this city, but there's so much beyond that facade of a rock star.

And I got to tell you, he says at the end you know, Detroit needs an angel, so, I spoke with his father, who is an auto dealer, at the concert and he said in many ways I think Kid Rock is Detroit's angel. You know, he may be a bad boy, but he's doing a lot of good things for the city that really needs it now.

COLLINS: Concerts -- were they free or donating the money to the auto industry, or do we know about that?

HARLOW: Yes. Part of the proceeds from that concert -- 80,000 people, by the way, went -- will help returning vets from the war, and also he's doing a lot in terms of the music scholarship to help kids in Detroit and specifically on the auto beat. And he said in the longer piece that's on CNNmoney.com, he said he and his father could never imagine the backbone of America, GM and Chrysler, going into bankruptcy. So, I think he'll continue to do great things for the city.

COLLINS: We'll check that out on CNNmoney.com. The extended version of Poppy's interview there. Thanks so much, Poppy Harlow. Appreciate it.

And just a reminder. We asked you this morning on our blog about back-to-school expenses because a lot of retailers are apparently offering layaway plans to get all your notebooks and glue sticks even some back-to-school clothing on layaway. So, just wondering what you thought. Is back to school getting too expensive?

We had quite a few responses. Let's head over to the Heidi Mac right now and take a look at some of them. CNN.com/heidi if you'd like to respond.

The first one here from Dan says, "My parents had to pay for my school books and they had to pay nearly 500 bucks. And that's without the back-to-school items." And this one coming in from Kimberly. "I have used the layaway programs previously and had no problem with them. It allowed me to buy the needed items my children needed for school and clothing that fit my children. My husband and I have watched over the last 20 years seven children total," wow, "and the list what parents must provide has grown every year, costing more and more."

And finally from Mary, "I have two children that just went back to school this week. I will tell you that I started saving money out of my paycheck four weeks ahead of time so that I could just barely buy the supplies and a few pieces of clothing for the children. I had to borrow some money that I would have put on bills so that I could accommodate my kids and their school needs."

As always, we love when you share your thoughts with us right here on the CNN NEWSROMM and like to share them with the viewers at home, as well. Thanks for that, everybody.

One is all for health care reform, and another doesn't like what's being proposed and a third is so fed up he's only taking cash. All three are doctors. You're looking at them. They're right here in NEWSROOM in a moment.

(COMMERCIAL BREAK)

COLLINS: Some of the top stories we're following. This just in, in fact, to the CNN NEWSROOM. We're learning at least 20 people were killed after a bomb blast today in Pakistan. You can see the map. It apparently happened right near the border with Afghanistan. This is what intelligence officials are telling CNN. Our Cal Perry is in the area and working the story hard. And we'll bring you the very latest here just as soon as we get it here.

Meanwhile, a New Mexico governor, Bill Richardson, reportedly will not be charged in a federal pay-to-play association. The Associated Press says the Justice Department will not pursue indictments. Richardson was at the center of a year-long probe into an alleged scheme to reward a political donor with lucrative state work. The federal probe derailed Richardson's nomination as President Obama's Commerce Secretary.

You might want to double-check your window coverings. Six companies are now recalling 5.5 million blinds and shades after three children became entangled in the cords and died. The recall were announced by the Consumer Product Safety Commission.

We certainly have been hearing a lot about health care reform this month from a lot of you. Today, it's the doctors' turn. Our "Snapshot Across America" takes us to Portland, Oregon, where Dr. Erik Swensson is a cardiovascular surgeon.

Dr. Sean Khozin helped create a health practice of neighborhood doctors in New York that relies heavily on social media.

And Dr. Christina Johns is a pediatric E.R. specialist in Washington. Welcome to all of you. Thanks for being here. We love hearing what you guys have to say in this very detailed discussion that has been going on for quite some time about our health care across the country.

Dr. Swenson, I want to begin with you. You're against the current reform bill. What is it that just doesn't sit very well with you at this point?

DR. ERIK SWENSSON, CARDIOVASCULAR SURGEON, PORTLAND, OREGON: Well, first of all, I'm not exactly sure all what is going to be involved in the reform bill. I am for reform, I am for improving health care to Americans.

One of my major concerns, however, is that the medical liability system is not on the table. We know that over $200 billion a year is wasted in the system, which could be money used to pay for the uninsured. We hear politicians say they don't know where the money is, and yet it is on the table right there for the taking. And, yet, we're told by the present administration that medical liability reform will not be part of this package. It is not on the table, and I think that is a major mistake. The doctors work in an atmosphere of fear, a fear of being sued, intimidation by the government and yet the same administration says that we do too much testing, and I absolutely agree with that. And the reason we do too much testing is because of that fear. So, I think that we need, we need to have some trust in the government to come back and support us and say, yes, we will take care of the liability system. We do need to be looked at, but we need to be looked at by our peers, not by a hostile trial lawyer.

COLLINS: Yes. Obviously, talking about malpractice here. Quickly, I know that you attended a town hall recently. What was your reaction to what you saw there, and maybe from your patients, as well?

SWENSSON: Sure. Well, I saw a lot of frustration, a lot of distrust between, unfortunately, the congressmen and the people in the town hall meeting and, again, the misinformation that people think is coming forward is very disheartening.

The government says that, for instance, it was said that surgeons make $50,000 to take a leg off. In fact, they get paid $800, and for the next 90 days, I take care of all the care for free. Statements like that really upset people. I think people are concerned that the government doesn't have their best interest at heart...

COLLINS: Yes.

SWENSSON: When it comes to health care, you're kind of used to the politician playing politics with taxes and things like that. But when it comes to your health care, playing politics is a very scary thing...

COLLINS: Well, I think everybody would certainly agree with that, whether you're a patient or a doctor.

Dr. Cosen, I want to get to you for a moment here. In fact, you got so fed up with insurance companies you decided, I'm going to take cash only. How did you get to that?

DR. SEAN KHOZIN, FOUNDER, HELLO HEALTH: Yes, exactly. I realized that working in the insurance-based system that we currently have really distracts me from focusing on managing my patients on doing what's best for them. So, I stopped taking health insurance, and that re-enabled me to design my medical practice to best meet the needs of my patients.

So, I often describe my medical practice as being high-tech and high-touch. I see patients in the office, but I also communicate with them online using e-mail, video chat and instant messaging. This is all done on a Web-based, secure platform designed by a very forward thinking health IT company. So, I...

COLLINS: You call it Hello Health, right?

KHOZIN: It's called Hello, Health, exactly. We're trying to create an ecosystem of doctors and patients that seamlessly communicate and exchange information. What I'm doing currently in my practice using the platform is insuring continuity of care, which means office visits...

COLLINS: Right. But you say high-tech, high-touch. Is it high cost?

KHOZIN: No, because physicians spend 30 percent of their revenue on just dealing with their insurance companies. Not having that burden, I'm able to pass on the benefits to my patients. I don't have to see 30 to 40 patients a day to stay afloat. I see less patients but spend a lot more time with them. By doing that, I can deliver much more appropriate and effective care.

COLLINS: Yes. More comprehensive. All right, Dr. Johns, you are an ER doctor for kids, to be specific. And I know that you see firsthand a lot of people who don't have insurance. What is the biggest problem with the reform bill that we're looking at now in your eyes?

DR. CHRISTINA JOHNS, PEDIATRIC ER SPECIALIST: Well, I think the thing that concerns me most is that I see the patients who can't pay $7 to get their penicillin prescription for strep throat. So, how are we going to help make sure these people can be insured adequately and have appropriate access to primary care? I think that's the thing that worries me.

As an ER physician, I see people after it's too late, when it's reached a crisis situation, and I'm seeing more and more of them. So, we need to make sure that whatever system we set up that it is going to be appropriate for all of those individuals who may have a job, maybe just getting by, but can't spend that extra $7 to $10 to get a basic thing that they need...

COLLINS: So, given everything that you see on a daily basis, most of these situations end up being pretty precarious. Everything need to happen right now. What do you see right now as the best solution here?

JOHNS: Well, you know, again, my personal opinion is that we need to have a system -- a health care system in this country that everybody can participate in. Everybody's involved in, but more than that, we need to fix its components.

We need to make sure -- and this is my swan song -- I am a firm believer in the medical home. That people have to have a good primary care doctor that they can access who's well compensated enough that it's worth it for him or her to stay in practice, see their patients regularly get them well, keep them well and when they're sick, fix the problem before it gets to the breaking point.

COLLINS: We certainly do appreciate the discussion this morning from those of you who are really on the front lines of all of this, and we will continue to have more discussions like that right here. Thanks, again to Dr. Erik Swensson in Portland, Dr. Sean Khozin in New York and Dr. Christina Johns in Washington.

SWENSSON: Thank you.

COLLINS: Thanks again.

We'll get over to Rob Marciano because he's watching Tropical Storm Danny strengthening a bit. Also and some fires. We'll bring you an update on that. We'll get right here in the CNN NEWSROOM in a moment.

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COLLINS: This is just in to the CNN NEWSROOM. Want to update you on a story out of Pakistannow . We are learning at least 20 people were killed in a suicide bombing that happened near the border of Pakistan and Afghanistan. This is according to intelligence officials telling us here at CNN.

The victims were apparently security personnel that were getting together for a meal to end the daily fast which takes place during the Muslim month of Ramadan. The suicide bomber apparently went into the barracks of a paramilitary force in the Kiaber (ph) agency or district and blew himself up. So, again, we will continue to follow this story throughout the day and get you more details and bring it back to you.

Let's get you over to Rob Marciano, now who has been tracking Tropical Storm Danny from our hurricane headquarters to get the very latest. Hi there, Rob.

MARCIANO: Hey, Heidi, we have the very latest. This is the 11:00 advisory from the National Hurricane Center. Let's get you up to date on that.

Winds at 60 miles an hour and still gusting to 70, but according to their discussion, it has become better organized. The center has closed off a bit better. And you can see here the cloud canopy and all the infrared imagery there showing a lot of the action and starting to wrap around a little bit.

But right now about 550 miles or so from Cape Hatteras and -- a little more than that, actually. Movement is northwesterly at 13 miles per hour. What has changed since we last talked -- it has jogged a little bit to the west. You see it in the movement to the left. It has shifted the entire track a little bit. The next 48 hours -- so that does bring in at least Cape Hatteras to the cone and brings more of eastern New England into the cone, but still the forecast track has it offshore.

They do point out that any more westerly jog or adjustment in that track would warrant a more likely U.S. landfall. Of course, if they decide to do that, and so far, the forecast models aren't bringing it on shore but if that happens, we'll certainly bring it to you first.

One more note, the space shuttle will give it the third try tonight just shortly after midnight. And right now, weather about 30 percent chance that prohibiting it from happening.

COLLINS: OK. Which means 70 percent not.

MARCIANO: That's right! We should try to be more positive about that.

COLLINS: That's right, gosh darn it. Third time's a charm. All right, Rob. Thank you.

MARCIANO: You bet.

COLLINS: Four years since Hurricane Katrina devastated the Gulf coast. On Saturday, New Orleans will host its annual ceremonial bell ringing. It coincides with the time the levees breached, deluging the city with water. It also serves as the reminder of the lives lost in the storm.

Four years later, a lot of progress has been made towards rebuilding. A new report shows a total of $26 billion in construction is either completed or now underway.

Anderson Cooper, in fact, is live in New Orleans with a look back at Katrina four years later. "AC 360" tonight, 10:00 Eastern, only on CNN, The Worldwide Leader in News.

Michael Vick set to suit up in an NFL game tonight, but before the first snap, there is a little matter of a court hearing.

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COLLINS: Bankruptcy plan followed by game plan for Michael Vick. Vick's in a Virginia courtroom this morning for a hearing on how he'll pay back creditors more than $20 million, and then he'll fly off to be with the Eagles, the Philadelphia E,agles, that is. Tonight he's scheduled to play his first NFL game since his dog fighting sentence.

Finally, in his 83 years, Dominick Dunne lived many lives. From prep school to the front lines of World War II. A Hollywood producer to bestselling author who chronicled the legal troubles of the rich and famous. That career shaped by personal tragedy, the killing of his daughter. Dominick Dunne died yesterday after a lengthy battle with bladder cancer.

Thank you for joining us, everybody. I'm Heidi Collins. CNN NEWSROOM continues now with Tony Harris.