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Economy May Perk Up During Second Half of 2009; Remembering Senator Edward Kennedy; Do You Need Swine Flu Vaccine?

Aired August 27, 2009 - 11:00   ET

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


TONY HARRIS, CNN ANCHOR: And good morning, everyone. It is Thursday, August 27th, and here are the top stories for you in the CNN NEWSROOM.

Fewer Americans are standing in unemployment lines, but times are still so tough in California. The governor is holding a garage sale this weekend.

August on track to be the deadliest month yet for U.S. troops in Afghanistan.

Four years after Hurricane Katrina, New Orleans is swamped again by a growing mental health crisis.

Good morning, everyone. I'm Tony Harris. And you are in the CNN NEWSROOM.

All right, let's talk for a moment about the so-called green shoots that have sprouted this week, adding to signs that the economy may perk up during the second half of 2009.

CNN's Christine Romans is in New York.

(MUSIC PLAYING)

That's a little "Happy Talk" music from Nancy Wilson there for you, Christine. Look, we don't want to get beyond ourselves here. These are positive numbers, but do the numbers indicate to you clearly that the recovery is taking root?

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: The numbers suggest that the economy is on the mend. And a lot of people are calling a turn. They're calling a turning point in what has been financial devastation for the last year and a half or two years, into what they say now is a stabilization and, as you pointed out, those little green shoots.

You know, to mix the metaphors even more, there is a big yellow danger flag waving at every turn, simply because there are so many uncertainties here. The consumer is chastened, and rightfully so. And, in fact, the jobless situation is going to remain probably troublesome.

But let's just take a quick look at these little things that have happened in the last few days that, taken together, are adding to the body of evidence that there's an economy on the end. Consumer confidence was better than many expected on Wall Street. Durable goods rose 4.9 percent. That was largely because of aircraft orders. But durable goods are things that are really an investment for people. So, that shows some confidence, to be able to spend big, or it shows that they have just been holding back for so long.

New home sales up 9.6 percent. Mortgage applications up a couple weeks in a row.

And again, there's a caveat to everything. But when you start to see, again and again, the little signs, it's at least a change.

It's a change because six months ago, we couldn't say the data was starting to look choppy. We were saying the data looks horrific. So, this is what we're watching here, these high-frequency economic reports again and again that are starting to show some signs of life.

But, as I said, it's going to be uneven, and there are going to be days when we're going to see negative news, and we're going to wonder whether we've relapsed. And that's a good thing to wonder, but this is where we sit right now.

HARRIS: Yes. And that's why, because we've got some decent reporting, and that's why we went with the "Happy Talk" music from Nancy Wilson.

Good to see you, Christine.

ROMANS: It's because I've had a frown on my face for a year and a half. You just want me -- you want me to be able to have something to smile about. So thank you. Thanks.

HARRIS: Exactly. Thanks, Christine. See you next hour.

ROMANS: Bye.

HARRIS: And again, we're talking bout hints of an economic recovery today. Shorter unemployment lines one of those hints.

At the New York Stock Exchange, CNN's Susan Lisovicz.

And Susan, the jobs picture getting a bit better, correct?

SUSAN LISOVICZ, CNN CORRESPONDENT: Yes, because they're not getting worse. I mean, you know, this is -- you have to be careful how you characterize this, because the numbers are still very high, Tony. Not as high.

So, let me give you some fresh examples.

Five hundred seventy thousand people filed for first-time unemployment benefits last week. So, well over 500,000. In a healthy economy, you'd want half that number. But it's much better than what we've seen, something that Christine was talking about on a much larger scale; right? Continuing claims above $6 million. Now, remember, this is not the total number of people unemployed, but people still collecting unemployment benefits.

The government says 14.5 million people are unemployed. So, that's sort of a bird's-eye view of the jobs market.

Let me give you a bigger picture of the economy, because this is the other report that came out today.

GDP, the broadest possible look at the economy, showed that it shrank one percent in the last quarter. Obviously, in a healthy economy, you'd see growth. But, it is still much better than the nearly 6.5 percent decline in the previous quarter.

So, what you really want to see is improvement in the jobs market. If you see improvement in the jobs market, this continuing trend, work it down, see growth there, you'll see consumer spending and you'll see improvement in the big picture, the GDP -- Tony.

HARRIS: And aren't there economists out there who are actually predicting third quarter growth in the GDP?

LISOVICZ: Yes. Yes.

In fact, there are some economists who say we're technically out of recession right now. But I think if you asked 100 people, do you feel that much better? No. People are still worried.

A lot of us have suffered a great deal with seeing our housing values, our investments on Wall Street really take a beating. But the fact is, I think a lot of people say the sky is no longer falling. They're a little bit less frightened than they were. That's an improvement.

HARRIS: Yes. And the psychologist is also important to this, as well. If the signs are better, your outlook is better, correct?

LISOVICZ: Yes, but people are still cautious. I mean, if you drill down on these numbers, like the new home sales, for instance, where is the action coming? It's coming on the low end.

A lot of people getting in for that first time home buying credit, the $8,000 tax credit. That's going to expire soon. So, it will be interesting to see what happens after that. There's a lot of interest in the foreclosure market.

Gerri Willis has been talking all day today about the interest among retailers with layaway. Well, layaway came about during the Great Depression. Retailers are turning back to that because people are still strapped for cash, they can't get credit like they used to.

Times are still tough. Maybe not as tough, and maybe that's the best we can expect with the worst recession, the longest recession we've seen since the Second World War.

HARRIS: Susan, welcome back. We missed you.

LISOVICZ: It's great to see you, Tony.

HARRIS: See you next hour.

Could the agency that guarantees your bank deposits need a bailout? The FDIC is running low on cash. With 81 bank failures this year, the FDIC reports today it has just $10 billion in reserves, down 20 percent from the first quarter. It now counts 416 banks as troubled, up more than 100 from the first quarter.

The FDIC can raise money by hiking premiums it charges banks, or it can borrow from the Treasury. So your deposits remain safe.

Struggling firms like Citi and Fannie Mae are making waves on Wall Street. What that means to your 401(k) -- check out our special report, "America's Money Crisis." Again, that's at CNNMoney.com.

A private family service today, followed by a period of public mourning for Senator Ted Kennedy. Family members will attend a mass next hour at the Kennedy compound in Hyannis Port, Massachusetts.

The motorcade is scheduled to leave by 1:00 p.m. Eastern on a procession to Boston. It arrives around 4:00 p.m. at the John F. Kennedy Presidential Library and Museum. The senator's body will lie in repose at the library from this evening to tomorrow.

Right now, the family is gathering at the Kennedy home for today's mass.

CNN's Deborah Feyerick is in Hyannis Port, Massachusetts.

And Deb, good to see you.

Set the scene for us, if you would. What have you witnessed so far this morning?

DEBORAH FEYERICK, CNN CORRESPONDENT: Well, what we're watching is, slowly, people are beginning to trickle in. They're arriving by cab, they're arriving by private car, they're gathering at the main home. That is where the senator's body currently is lying in repose. We are told that he is in the sun room, and that's a room that overlooks the water, that is very quiet inside the house.

We're seeing a number of Kennedy children, the younger generation, that have been riding their bikes, that have been going down to the water. They have been walking the dogs out, sort of catching a glimpse of us as we're doing our jobs out here.

But it's really almost a very respectful tone. There's a lot of almost reverence right now. That's sort of the move right here at the island.

In fact, when you look at some of the people who are coming by, even though they'll stop and they'll look down at the compound, they'll try to see who's out there, they just keep walking. You know, everybody sort of knows that this is a quiet and sacred moment here.

Now, the casket will be brought from the home, after that mass that you mentioned, Tony, by --accompanied by an Honorary Military Guard. The family will line up behind the hearse, and then they'll begin that 70-mile journey into Boston, and they're going to be stopping at a couple of places that really meant a lot to both the Senator, but also to his family.

For example, they're going to be stopping by the house where JFK lived there in Boston. They're also going to be stopping by the senator's office and Boston Common and Faneuil Hall.

So, there's an element, you know, not just of mourning, but also of celebration of the places that have so much meaning. I know that's something that a lot of people have been saying, but a lot of people paying tribute to the senator's life.

HARRIS: Deb, appreciate it. A lot to watch in the next couple of hours.

Deborah Feyerick for us.

Thanks, Deb.

You know, it could take months to fill Kennedy's Senate seat unless there is a change in state law. It requires a special election in five months.

On CNN's "AMERICAN MORNING," Governor Deval Patrick said he supports changing the law to allow for a temporary appointment before the special election.

(BEGIN VIDEO CLIP)

GOV. DEVAL PATRICK (D), MASSACHUSETTS: The legislature and the legislative leaders, I know, are seriously considering this request and this minor change to make a temporary appointment to the Senate. They are focused not so much on whether it should be done, but how it can be done and how to get it accomplished. And that's not a simple calculation. They've got to work their way through it, and I think they're working their way through it in good faith.

You're right about the stakes, both in terms of health care, climate change. Frankly, the further considerations of how states are assisted through these very, very difficult times. And how working people are put back to work. And all of these are critical issues where no time can be lost and, frankly, the persistence of partisanship in the Congress may make this even more urgent.

So, I'm hoping that the legislature will turn to it, and turn to it soon. And if they send me a bill, I will sign it.

(END VIDEO CLIP)

HARRIS: OK. And we invite you to stay with CNN for continuing coverage of the life, legacy of Senator Ted Kennedy. His body will lie in repose at the John F. Kennedy Presidential Library until the memorial service tomorrow at 7:00 p.m. Eastern Time.

Funeral services will be held Saturday, followed by the burial at Arlington National Cemetery.

You have heard the warnings about swine flu, H1N1. So, should you get the vaccine?

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(WEATHER REPORT)

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HARRIS: As flu season begins, many of you may be trying to figure out which flu shot you should get. OK, the regular vaccine, the new swine flu vaccine, maybe both? And if you do end up getting the flu this year, how do you know which one you've got?

A lot of questions there.

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: A lot of questions.

HARRIS: Yes.

Senior medical correspondent Elizabeth Cohen is here to help us sort through a bit of the confusion here.

COHEN: OK. Stop there.

HARRIS: Please. Please.

COHEN: OK. Stop there.

HARRIS: Thank you.

COHEN: There was too much information. So, I'm going to answer your second question first, which is when you get the flu, you have no idea which one you have. You don't get a big, like, "S" on your head for swine flu. That doesn't happen.

So, you have no idea. You'd have to go to the doctor, you'd have to get tested. And chances are your doctor will probably say, I'm not going to test you. You have a flu. And here's what you need to do.

So, the second question that Tony talked about is, what shots do you get? So, let's talk about this for a minute.

Some people should only get the regular flu shot. Other people should only get the swine flu shot. And some people need to get both. So, let's talk about the group that needs to get both, because these will be busy people.

HARRIS: You're absolutely right. All right, so -- and the question is -- and this is the group. COHEN: And here's the answer. So, both flu vaccines are recommended for pregnant women; anyone ages 6 months to 18 years; anyone 25 to 64 years old who has a chronic condition like asthma or diabetes; and people who take care of babies who are younger than 6 months old.

Now, when I say both shots, it's actually three shots. One shot is the seasonal flu shot. That's the one that everybody gets. And swine flu is actually two shots. You get a shot, you wait three weeks, you come back for the second one.

HARRIS: Well, do you want to get the swine flu shot? Because at this point, you know, the research continues. Correct?

COHEN: Right, it's new. And I've heard many people say, "I don't want to get something that's that new."

I mean, here we are in August, and they're studying it, and it's coming out in October. So, this has definitely been, well, fast- tracked, I guess you could say.

So, if you get a swine flu shot in the middle of October, you're not going to be the first person ever to get this shot. There are several thousand people who preceded you. So, let's take a look at this.

This is a list of the people who are in swine flu vaccine experiments as we speak -- 3,100 adults are involved in these clinical trials that are going on right now, and 240 pregnant women in addition to that 3,100, plus 1,200 children. So, when you go to get it, now that these folks have gotten it. And if this goes on the market in October, it means it was safe for the people you just saw there.

HARRIS: October, is that what we're talking about here?

COHEN: October, right. That's when we're talking about the first batch will be available. There won't be tons and tons of vaccine. More will come later. But if you go in the middle of October and there's none there, just wait. More is coming.

HARRIS: You know what? I didn't want to forget this note that you sent to me. You're doing something a little different on the Web site today, aren't you, with your column?

COHEN: That's right. For "Empowered Patient," we're doing something a little bit different because of the death of Senator Kennedy yesterday.

Senator Kennedy, a lot of people don't know, was an incredible empowered patient. He had two children with cancer, and he pulled out all the stops to make sure those kids got the care they needed. Now, even if you're not a Kennedy, you can do that.

Go to CNNHealth.com and you'll see how.

HARRIS: Awesome, as always. Elizabeth, appreciate it. Thank you.

COHEN: Thanks.

HARRIS: Office equipment, cars, bikes, BlackBerrys, it is all up for grabs in California in a weekend -- yes -- garage sale hosted by the government.

We're back in a moment.

(COMMERCIAL BREAK)

HARRIS: Another U.S. military death reported in Afghanistan today. That makes 44 American forces dead so far this month. Forty- five lost last month, which was the deadliest month for U.S. troops in that war. We will have a live report from Afghanistan later this hour.

Big whoops from the Veterans Administration. The agency says it will apologize to vets who were mistakenly informed they had a fatal neurological condition. The VA sent the wrong letters to more than 1,800 vets last week. They were supposed to be sent to vets with ALS.

So, more back-and-forth arguments on the issue of health care reform. This is a town hall meeting in Green Township, Ohio. Democratic Representative Steve Driehaus hosted the gathering, and boy, did he get an earful.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I'm here because I think we need to have health care reform so that every American has health insurance.

UNIDENTIFIED FEMALE: We want to rectify what we have now before we spend trillions of dollars more trying to start a new program.

(END VIDEO CLIP)

HARRIS: At another town hall this summer, angry opponents of reform shouted at the lawmaker and actually followed him to his car. Brother.

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 meetings, fact-checks, iReports, and other health care news.

Once again, that's CNN.com/healthcare.

So, have you heard? Cash-strapped California is raising money this weekend with a good old-fashioned garage sale, everything from cars to computers, jewelry and junk, going for knock-down prices.

Ron Hyde of affiliate KOVR has a look.

(BEGIN VIDEOTAPE) RON HYDE, KOVR-TV CORRESPONDENT (voice-over): Seventeen hundred (INAUDIBLE). Google it. It's the great California garage sale this Friday and Saturday. Eye-opening, wallet-friendly items, oh so lean on the green.

UNIDENTIFIED MALE: Computers, furniture, chairs, you name it. Office supplies of all sorts, but also items that have been confiscated from the California Highway Patrol -- bicycles, jewelry.

HYDE (on camera): Even Kings Bobbleheads, which you can get for next to nothing. The good Kings, too, like Bobby Jackson and Hito Terckiloo (ph), and Scot Pollard.

(voice-over): If you've done this before, you know the drill -- computers, monitors, cameras, cars, furniture. Even dental chairs? Items too numerous to mention by name.

And when we say something for everybody...

(on camera): ... everything you could possibly imagine is for sale this weekend, except, of course, this BlackBerry, this camera and this bicycle.

(voice-over): An estimated $1.2 million, mostly from the sale of the cares, will go back to the state. Good for them, good for you.

(on camera): Again, this place is going to have everything imaginable. Prices so low, you won't believe it. Also, TVs, BlackBerrys. Heck, even this whiteboard, just 8 bucks.

(END VIDEOTAPE)

HARRIS: Ron, you got the salesman thing going there.

If you can't get to that warehouse in Sacramento, you can just go online. Thousands of those items posted on Craigslist and eBay.

Late-night comedians are poking a little fun at the governor's garage sale. Take a look at this commercial Jimmy Kimmel whipped up.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: It's Arnold's California gold rush gosh sale, and everything must go. Staplers, hasta la vista, baby. Post-it notes, they won't be back. Slightly burned dumbbells, $10. Big, scary knives, two bucks. A pair of Maria's legwarmers, $8.

Signed. I've got Humvees, hammers, (INAUDIBLE), even Hummers!

(END VIDEO CLIP)

HARRIS: OK. We couldn't resist.

Still to come in the NEWSROOM, young women getting an education thanks to the generosity and time of others.

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HARRIS: Afghanistan is heating up. Four U.S. international troops, a U.S. service member was reportedly killed today. That makes the 44th U.S. death this month. Forty-five were killed in July, which was the deadliest month for U.S. troops since the war began in 2001.

Our Atia Abawi is in Kabul.

And Atia, here's the question. Does this reflect increased efforts by U.S. troops or more of a push from the Taliban?

ATIA ABAWI, CNN CORRESPONDENT: A little bit of both, Tony. Whenever you have thousands of U.S. troops and thousands of coalition troops coming into an area, you're going to have the enemy try to prove that they can face them, that they can take them. And you saw the Taliban stepping up their efforts, as well, being very successful when it comes to roadside bombs. It's a very cowardly tactic, but it's also a very effective tactic.

They can just leave the bomb on the road, dig up a hole. And it has killed many of these coalition troops this summer, but it hasn't killed the Taliban.

But on that note, when you talk to the coalition forces, they will not give you figures of Taliban deaths, because they say that their mission is to secure Afghanistan for the Afghan people, and it's not to necessarily gloat about fighting against the Taliban and killing the Taliban and killing the insurgents. But when I talked to a top international official here in Afghanistan, he told me that, in fact, the Taliban has been taking a very strong blow, as well. Hundreds of their fighters dead this summer because of this new effort by the coalition forces to protect certain towns and villages -- Tony.

HARRIS: So, Atia, give us an update on the election results and the accusations that are certainly flying of voter fraud.

ABAWI: There's a lot of accusations going on and a lot of finger-pointing when it comes to the presidential candidates here in Afghanistan. Kind of like in the rest of the world.

But when it comes to voter fraud, it's very massive at the moment here. The Electoral Complaints Commission already receiving several hundred complaints, stating that they don't want to reveal the results of the elections on September 17th like it was planned until they go through each complaint.

But at the moment, President Karzai, the incumbent, in the lead. On the first day, we saw that he had a slight lead. On the second day of results, we saw that he had a much bigger lead, and we expect that gap between he and his rival, Dr. Abdullah Abdullah, to increase as the voting comes in, the ballot is tallied in the south, where President Karzai has most of his support.

And any president in Afghanistan needs to win with at least 50 percent of the vote. President Karzai seems to be going in that direction, but Dr. Abdullah also pointing out the fraud, showing video evidence and hoping in some way, somehow that will give him a chance with a run-off election.

HARRIS: OK. CNN's Atia Abawi for us in the Afghan capital of Kabul. Atia, good to see you. Thank you.

In neighboring Pakistan, a suspected U.S. drone attack on possible Taliban members. Pakistan intelligence sources say six people killed and seven wounded. The attack in the area of South Waziristan, part of Pakistan's tribal region.

You know, there has been a spike in those strikes recently. The U.S. military routinely does not comment on reported cross-border strikes carried out from Afghanistan. Also, we're getting reports of at least 20 people killed in a suicide bombing near Pakistan's border with Afghanistan.

The U.S. Navy taking gunfire from pirates. Take a look at this Navy video shot from a helicopter off the coast of Somalia. The crew was filming Somali pirates holding a hijacked ship when someone shot at the chopper with a very large-caliber weapon. The chopper was not hit and did not return fire.

Quickly now, let's get you to Rob Marciano. And, Rob, you know, I was going to ask you about what's going on in the tropics, what's the latest on Danny. But, oh, good, give us an update on the wildfires in California, if you would, please, sir.

ROB MARCIANO, AMS METEOROLOGIST: We've got a handful going on there. One flared up last night, a new one. That one's pretty small, by the last check about 20 percent contained or so. But the big one, which you reported on yesterday, the Azusa fire, still over 1,700 acres burned.

And these red areas you see here, those are red flag warnings. So, these are areas that are with relatively low levels of humidity. And it's going to be hot again today. Yesterday we had record- breaking heat, and I think we're going to see that again today with temperatures in some spots up and over 100 degrees. So, that's really not going to help firefighters.

And they're not going to see much in the way of rain. That is mostly across parts of the western Great Lakes and also down across parts of Florida. They have been getting -- this is their west season, of course, and that will often give you problems when you're trying to launch a space shuttle.

We struck out twice so far this week, once because of weather and once because of a leaky valve. They got the valve fixed, they think. Now tonight, another night launch expected, and the weather is going to cooperate, maybe about 70 percent likelihood. So, 30 percent chance of a no-go to launch because of that.

All right, I want to get you updated on what's going on in the tropics. This is tropical storm Danny, 60-mile-per-hour winds. It has made a bit of a jog to the west. You see it there. And right now it's 550 miles to the south-southeast of Cape Hatteras. Here's the updated forecast track. Skimming the coastline, making that very Bill-like turn, but this time it's a little bit farther to the west. It is weaker, but farther to the west. So, any jog farther to the west from what we're showing here, folks in the Carolinas and then also New England, Tony, and this would include Boston on Saturday, which at this point, regardless of which way Danny goes, it looks to be a fairly wet day.

HARRIS: Yes. OK, Rob. Appreciate it. Thank you.

MARCIANO: You bet.

HARRIS: Mourners started lining up this morning to pay their respects to Senator Ted Kennedy. They're gathering at the JFK Library in Boston. The senator's body will lie in repose there later today. But first, the family members attending a private Mass. Next hour, Deborah Feyerick joining us live from Hyannis Port, Massachusetts. And if you would, Deb, if you would, set the scene for us. We're seeing more traffic heading to that location.

FEYERICK: Yes, absolutely. As a matter of fact, over the next half hour, we're expected to get pretty busy around here as people arrive for that private family Mass. We've already seen a number of cars pull in. We've seen some young girls in mourning clothes, the black dresses, to pay respect to Ted Kennedy. Caroline Kennedy arrived just a short while ago by taxi. Again, she's just one of 29 cousins who really all relied on Uncle Teddy as a source of strength and inspiration and someone they could lean on and always count on filling that role.

Now, it will be interesting also, Tony, to see just how many people line the route of the motorcade, especially here. There's a long, narrow road that you go on to. And we've been having a lot of people sort of coming and watching and seeing what we're doing. They've closed this section for the time being, but it will be interesting to see whether in fact some of the locals who considered the Kennedys such a huge part, a huge anchor of this community, whether they come out to just either see the motorcade or wave or just pay their final respects to this man who they really -- they adored in many cases -- Tony?

HARRIS: All right. And Deb, I understand you had an opportunity -- did you have an opportunity to talk to Senator Kerry a little earlier today?

FEYERICK: You know, we did, as a matter of fact. He was here yesterday. He spent about three hours with the family. His wife was very forthcoming. She's friends with Ted Kennedy's widow, Victoria Reggie, and she said that, in fact, she seemed to be holding up pretty well, all things considered, that Victoria Reggie really considered this last year as wonderful time that the two of them spent together doing exactly what they wanted to do.

You know, there are reports that in fact they spent some time watching a James Bond movie, "24" and obviously working on memoirs and preparing the legacy, but more fun things. You know, appreciating big bowls of ice cream together. Senator Kerry also talking about the future.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D), MASSACHUSETTS: He loved people. He loved the give and take of politics. He had respect for everybody. And you know, despite all of 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's a good lesson for a lot of people in politics to learn.

TERESA HEINZ KERRY, KENNEDY FAMILY FRIEND: There's a book that the kids are signing so they cover the presence, a vigil right through the night. So, you have little kids this size and, you know, kids this size, and they're all taking turns. So, the body will not be left alone.

(END VIDEO CLIP)

FEYERICK: And you have to think of really just the beauty and simplicity of the Mass that's going to be taking place inside of the home. We're told that the casket is in the sunroom, which is sort of the main living room area of the main house. That's a very large house. It overlooks Hyannis Port -- you can see some of the boats there just behind me -- and flooded with sun, a perfect day here.

It is cool today. Yesterday it was very hot and very humid. Today it is cool, a couple of clouds, perfect day for sailing. And all the families sort of gathering as they have so many times in the past for the first step of what will be a couple-of-day journey -- Tony.

HARRIS: Yes, absolutely. Wonderful words there, and the pictures of that setting match perfectly. Deborah Feyerick for us. Deborah, appreciate that. That was good. Thank you.

And we encourage you to stay with CNN for continuing coverage of the life and legacy of Senator Ted Kennedy. His body will lie in repose at the John F. Kennedy Presidential Library until a memorial service tomorrow at 7:00 p.m. Eastern time. Funeral services will be held Saturday followed by the burial at Arlington National Cemetery.

Four years after Hurricane Katrina, the New Orleans mental health system is in shambles and getting worse every year. Chief medical correspondent Dr. Sanjay Gupta tracks the path of one patient.

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HARRIS: Texas billionaire R. Allen Stanford was supposed to be in a federal courtroom this hour. Instead, the man accused of cheating investors out of $7 billion is in the hospital. A judge says he was experiencing an irregular heartbeat and rapid pulse. Today's hearing was to deal with whether Stanford can get a new attorney.

US Airways -- listen to this -- is tacking another $5 on to the cost of checking a bag. It will now cost you 50 bucks to check two on domestic flights. US Airways will also charge an extra $50 for a second bag on transatlantic routes. Delta, Continental and American have made similar increases.

Pro football quarterback Michael Vick suits up for the Philadelphia Eagles tonight. It is his first game since being released from prison for running a dogfighting ring. Vick has clearance to play in the final two preseason games. The NFL commissioner will decide by mid-October whether to fully reinstate Michael Vick.

Saturday marks four years since Hurricane Katrina slammed into New Orleans, and the scars remain. Desperation plagues the city to this day. More and more people literally trying to kill themselves. Our chief medical correspondent Dr. Sanjay Gupta takes us on a ride with a group combating the crisis.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: This is what it's like in downtown New Orleans right now.

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT (voice-over): The images still haunting -- Katrina.

I was there, and it sticks in your mind. Hundreds of patients abandoned here, forgotten at Charity Hospital.

Years later, what price does a community pay?

Cecile Tebo says people here have reached the pinnacle of desperation.

(on camera): The biggest change you've noticed before and after the storm?

CECILE TEBO, MENTAL HEALTH CRISIS UNIT, NEW ORLEANS POLICE DEPARTMENT: Definitely, the suicides. So many people wanting to kill themselves. I mean, repeatedly, we're still seeing that.

GUPTA (voice-over): That's because suicides here have tripled.

Cecile Tebo is NOPD, New Orleans police. She wears a badge but doesn't carry a gun. She's the head of NOPD'S mental health crisis unit.

TEBO: NOPD responds to 250 calls a month for people that are in a mental health crisis. That's a lot of calls.

GUPTA: We went on a ridealong with Tebo to see it ourselves. Not surprisingly, within minutes, a call.

Tebo and her partner are on a mission to save people from killing themselves.

(on camera): What's the most number of times you've picked up the same patient?

TEBO: Thirty-six. GUPTA: Thirty-six times?

TEBO: In a year.

So, what we're going to do is we're going to get you over to the hospital, OK?

UNIDENTIFIED MALE: OK.

TEBO: Get the doctor to take a look at you. OK, babe?

GUPTA (voice-over): What you're looking at is a pretty typical call for a day here in New Orleans. Police officers dispatch first and then this mental health crisis unit. They've just picked up a patient, and they're going to transport him to the hospital.

GUPTA (on camera): And now the patient is safe in the emergency room here behind me. It took about 25 minutes to get here to the emergency room at East Jefferson. And therein lies part of the problem: Simply finding a long-term psychiatric bed is next to impossible in New Orleans.

(voice-over): You see, prior to Katrina, there were more than 200 in-patient mental health beds in metropolitan New Orleans. Today, there are only 38. Charity Hospital, still closed, had nearly 100.

And the very day we arrived in New Orleans, another hospital shut down, New Orleans Adolescent Hospital. Another 35 inpatient beds gone.

(on camera): Because a place like this closes down, are there people who are a danger to themselves and a danger to others now more likely to be on the streets?

TEBO: Absolutely. Without a doubt.

GUPTA (on camera): Would you say that the people around here, the mentally ill, have given up as a result of not having the resources?

TEBO: There's a high level of frustration, and I think a lot of the suicidal thinking is because they keep going back and back and back into the hospital and not getting help.

Watch your head.

GUPTA (voice-over): Tebo considers herself a warrior for the mentally ill, but the fight, she says, is becoming more and more arduous by the day.

TEBO: To take that bridge jumper's hand and say, you know what, baby, we can do better than this. Take my hand, and let's give this another try.

And if we don't get more services here, then I'm going to be a hypocrite saying that. It's going to be very hard for me to continue to give hope if the programs are not here.

GUPTA: Four years later, hope is one thing New Orleans could still use.

Dr. Sanjay Gupta, CNN, New Orleans.

(END VIDEOTAPE)

HARRIS: CNN's Anderson Cooper is live in New Orleans with a look back at Katrina four years later. "AC 360" tonight at 10:00 Eastern only on CNN.

(COMMERCIAL BREAK)

HARRIS: So, let's put health care in focus now. A Baltimore doctor who still makes old-fashioned house calls?

(BEGIN VIDEOTAPE)

DR. JEFF KATZ, BALTIMORE DOCTOR WHO MAKES HOUSE CALLS: I'm Dr. Jeff Katz.

It's Dr. Katz.

I do house calls...

Man, your pressure's way up.

... on the underserved Medicaid population. I just go into neighborhoods in the inner city that are full of despair and low on the economic strata. You have the boarded-up townhouses. There's groups of young men hanging out on the corner, open-air drug markets. Not uncommon to have shootings just hours before or afterwards on the streets.

So, I'm not a concierge doctor. And I say sometimes this is the anti-concierge practice.

Take a deep breath.

Twenty percent of Medicare patients, they get readmitted after discharge from the hospital. Billions of dollars are lost due to those readmissions. And those could be saved by increasing services at home.

When was that last filled? When was the Oxycodones filled?

UNIDENTIFIED FEMALE: 8/3/09.

KATZ: About three years ago, we embarked on a beta test with the sickest highest utilization of members of this group to coordinate a team approach with field nurses, with the physician at the center, trying to cross the culture gap of noncompliance and distrust, build confidence and relationships with the patients and get them re-engaged in their health care so that we could decrease unnecessary emergency room transports and hospital admissions. And that's been quite successful.

That was my mom's name, so it was on his Jeep. And my dad was a combat medic in World War II and later became a family practitioner in New Jersey, and did house calls with his primary-care practice.

These are some old tools that he used.

It was a standard part of medical practice because there was no 911 system. Patients couldn't call 911 in the middle of the night. They called their doctor. So, he did house calls and carried around one of those large black bags.

This is a unique partnership where the interests of the insurance industry and health care providers really interface, and they coalesce into one mission.

I think he'd probably be interested, knowing him, and he'd probably have some things to tell me about how I could do it better. But I think in his heart, he'd be pretty proud of me.

(END VIDEOTAPE)

HARRIS: Photojournalist Jay McMichael put that report together for our series, "Health Care in Focus." If you would like to find more of what you've been seeing here on CNN, just check out CNN.com/health care.

There you can even find out about what the closest town hall meetings are to you, the key players in this debate, the different plans and, of course, the controversial sticking points to the plans.

Here's what we're working on for the next hour of CNN NEWSROOM.

The final journey for Senator Ted Kennedy. A private family Mass begins in just minutes at the senator's home in Hyannis Port. An hour from now, the Kennedy motorcade heads for Boston. We are following it all for you.

Both her daughter and son have chronic illnesses. She quit her job and with her purple van and a dogged determination, she headed cross-country to chronicle the troubles with health care. We will share her story with you.

Plus, Republican Senator Tom Coburn on health care reform. He calls it a big problem and adds there is some exaggeration going on when it comes to just how many people are adversely affected. That is all next hour for you, right here in the CNN NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: Impacting their world. College students take a leave from their schools in the west to mentor young girls from Pakistan's battle-ravaged Swat Valley. The girls had been sent to Islamabad to get an education after being denied one by Taliban militants.

CNN's Cal Perry reports. (BEGIN VIDEOTAPE)

CAL PERRY, CNN INTERNATIONAL CORRESPONDENT (voice-over): It's a war that separates extremists from more moderate forces, clashing in the most beautiful part of Pakistan, the Swat Valley. The Taliban had intimidated the population, including young girls, forbidding them from going to school.

These 26 girls are living witnesses to the central battle within Islam today. They're in Islamabad, part of a program that takes them out of their homes in the Swat Valley. Helping them, a group of university students of Pakistani background who've returned home from abroad with a simple goal: Teach the children the importance of education. Shiza chose to spend her summer here, between the third and fourth years of her studies at Stanford University in California.

SHIZA SHAHID, PROGRAM ORGANIZER: Pretending to be younger students so that they could go to school, not wearing their uniforms so that they could go to school, hiding their books under their shawls so that they could go to school. And at that point, I think we were just so angry and upset and emotional that we decided we had to do something.

PERRY: At times, this group of mentors seems disorganized. Shiza is only 20 years old and has done nothing like this before.

SHAHID: We need support. We need, unfortunately, more organization, more of the bureaucratic nitty-gritty that you don't want to do, but you have to, because we are young, and that does come with the burden of not being as easily trusted and not being seen as capable.

PERRY: The idea is simple enough: confidence-building measures, critical thinking lessons, all framed in the context of religious values the children have heard before, but this time from a different point of view.

It's still dangerous. The girls cannot talk about Taliban harassment, because while the government is confident the Taliban was flushed out of the region, the ideology of Shariah law may still linger, and these girls will have to return to their homes in the Swat Valley. So, we talk about childhood dreams.

UNIDENTIFIED FEMALE: I want to become the president and to rule this country in a good way.

PERRY (on camera): You want to become president to prove to people that a woman can become president.

UNIDENTIFIED FEMALE: Yes.

PERRY: And you've decided this -- how old again are you?

UNIDENTIFIED FEMALE: Twelve.

PERRY: I don't think I believe you. UNIDENTIFIED FEMALE: OK, I'm, I guess, 35.

PERRY: I think you're, like, 30.

(voice-over): They're young, idealistic, but have seen enough to make them grow up quickly.

Cal Perry, CNN, Islamabad.

(END VIDEOTAPE)

HARRIS: That is terrific. Find out how you can help the families from Pakistan's Swat Valley by logging on to CNN.com/impact. The site offers many other opportunities to impact your world. We encourage you to check it out.