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Jaycee Dugard's Life in Captivity; Silencing Robocalls; Where's the Mortgage Help?

Aired August 31, 2009 - 13:57   ET

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

KYRA PHILLIPS, CNN ANCHOR: We're pushing forward now on the front lines of the disaster in the mountains north of Los Angeles. The so-called station fire grew twice as big in the daylight hours yesterday and doubled again overnight. It's now consumed more than 85,000 acres and 21 homes that we know of. At least 10,000 more homes are in danger, along with numerous TV and radio towers and the Mount Wilson Observatory. More than 2,500 firefighters trying to save them. But safety, their own and others', is their top priority right now.

And this isn't the only California wildfire. It's by far the biggest and wildest. But the station fire is just one of several burning from one end of the state to the other.

CNN's Reynolds Wolf is in the town of Lakeview Terras in L.A. County -- Reynolds.

REYNOLDS WOLF, CNN METEOROLOGIST: Hey, Kyra. Well, we've got right here is we've got a pretty quiet time for the time being. Take a look at what we have. In this staging area, we've got a place where firefighters can come in from being out on the lines for some 12 hours at a time, breathing in all that smoke, dealing with all that soot, all those fires.

Right now, they've had a chance to come in here. They've had a chance to get something to eat. Many of them have gone. Now, if you're wondering where they've gone, some of them are actually getting a nap for the time being.

But the rest of them, want to show you something over here. They're over beyond these hills that on any other day you could see clear as a bell. But right now, many of them are shrouded in smoke. Now, we have some video that we've been showing you all morning long of the conditions they've been fighting out there. Not just on foot but also in the skies above.

You notice all these water trucks that are coming out. This is just one of the many team players that you've seen here. You've got departments not only from this particular region, but from all over the state that come here to battle this incredible blaze that has burned in excess of 90,000 acres. I mean, just an immense fire, still burning out of control in many locations.

Now, from our vantage point, and I'm here with photojournalist Mike Love, temperatures here are about into the low 90s. But when you get back in those canyons, back in those mountain passes, Kyra, we're talking about temperatures that are into the triple digits. Smoke makes things just almost impossible to breathe, makes it impossible to see, not just from the ground but also from high above. Now, Chad earlier was talking about if we had some of those Santa Ana winds that could come through those valleys, it would be bad in terms of really fanning those flames.

But in one sense, it would really give us a better idea of where the fires were going. It would give us a better idea of how we could really imply some kind of strategy as to where we should be ahead of these fires, where those flames might go. Because we're dealing with very little wind at the time, the smoke has just been going right up. So, to get that additional assistance from the skies above, from the fixed-wing rotary aircraft, it's been helping some, but not as much as it would in a normal situation.

Speaking of a normal situation, they have been showing the situation way over here in this direction. We have got -- off here in the distance, you'll notice a big board that has got a tremendous map. They've been coming up there, giving us some information just on where they've been really battling this blaze. This blaze, of course, the Stage Fire, just out of control, and certainly going to take some time to really knock out.

That's the latest we've got for you. Let's send it back to you guys in the studio.

PHILLIPS: All right. Reynolds Wolf, sure appreciate it.

Well, heat, fear and exhaustion aren't the only burdens those firefighters are bearing. There's also grief in the aftermath of a deadly accident yesterday near the town of Acton. Two firefighters were killed when their vehicle rolled down a 700-foot embankment.

(BEGIN VIDEO CLIP)

DEP. CHIEF MICHAEL BRYANT, LOS ANGELES COUNTY FIRE DEPT.: We ask you, please, for your understanding, for your patience as we move through this difficult time. And please, prayers for that family of our two brothers that we lost.

(END VIDEO CLIP)

PHILLIPS: Fire Captain Tedmund Hall of the San Bernardino County had been on that job for 26 years. Specialist Arnie Quinones of Palmdale for eight years.

Now, just outside San Francisco, questions that just aren't going away. How did so many years pass before people learned this awful truth -- that the girls living in a man's back yard weren't just kids, they were captives. People in Antioch say that part of the illusion was that Jaycee Dugard and her two daughters appeared normal, despite a life that was anything but.

With the many sensitive questions involved in this story, CNN has blurred the images of the girls to protect their privacy.

CNN's Ed Lavandera has more now from Antioch, California.

(BEGIN VIDEOTAPE)

ED LAVANDERA, CNN CORRESPONDENT (voice-over): Jaycee Dugard appeared to have settled into an unimaginable routine during her 19 years of captivity. Behind the scene, she lived in this messy backyard prison but to the outside world, she was the creative force behind Philip Garrido's printing business designing business cards for clients all over the town of Antioch. Deepal Karunaratne describes her as intelligent with an attention to detail.

DEEPAL KARUNARATNE, GARRIDO BUSINESS ASSOCIATE: She was always having a very pretty smile on the face. She comes and talking to me and always smiling. And she's a very pretty girl. Very pretty young lady.

LAVANDERA: Even Dugard's daughters appeared to live a normal life. These are pictures of the young girls obtained by CNN. The 11- year-old went by the name of Angel. The 15-year-old, Starlet. We've blurred their faces to protect their privacy.

The pictures were taken two weeks ago at a birthday party for Sheyvonne Molino's daughter. Molino says Garrido called Jaycee and the daughters "my girls" and often brought them to Molino's wreck yard delivering bottles of water on hot days.

CHEYVONNE MOLINO, GARRIDO'S BUSINESS ASSOCIATE: They made it seem like these little girls were like living like wolves or jungle kids in the backyard, you know, dungeon. Perhaps that is it but they didn't give me the visual to me. They were polite. They were well- mannered.

LAVANDERA: Molino says Angel and Starlet were huge fans of Hannah Montana. She says Jaycee dreamed of becoming a model, always clean and well dressed. No hint of the tragic reality.

Investigators have expanded the crime scene at Phillip Garrido's home. They brought cadaver dogs to search the property next door. Authorities are looking into whether Garrido could be connected to a string of murders in the 1990s.

JIMMY LEE, SPOKESMAN, CONTRA COSTA SHERIFF'S DEPARTMENT: What we also know is that Phillip Garrido had access to that property. He used that property and it looks like he lived on that property in a shed.

LAVANDERA: As we've scoured Garrido's hometown looking for clues, we found this in a hardware store. The name Phil G. on a donation card. On August 17th, this receipt shows Garrido bought a pressure switch and then left a $2 donation to the Children's Miracle Network.

(END VIDEOTAPE)

PHILLIPS: Once again, that was our Ed Lavandera reporting. Cadaver dogs were brought in to search the property next door. They're trying to figure out if Garrido is connected to a string of prostitute murders in the 1990s. Several of the women's bodies were dumped near a park where Garrido worked at the time.

We're surely going to keep pushing forward on this story.

It was touted as the big answer to the nation's housing meltdown. So, how is it working? Some say it depends on who you ask, but we know this -- the president's plan to keep more Americans in their homes is falling short of promises.

(COMMERCIAL BREAK)

PHILLIPS: Now, let's be perfectly clear. We're not out of the woods yet when it comes to the banking crisis, but some of the biggest banks like Morgan Stanley and Goldman Sachs -- you know, the ones that took billions of our dollars to stay afloat -- are now paying us back. And get this -- we are making a profit.

More than $70 billion has been repaid in full by eight banks, and the Treasury has received another $87 million in partial repayment. When you add the dividends, interest and warrants, the total climbs actually to almost $80 billion. And those paybacks so far are equal to a 15 percent annual profit for the government.

Those automated phone calls always come at dinnertime, don't they? But as of tomorrow, a new ban on robocalls will take effect, and any company caught breaking the rules will face a fine of $16,000 per call. There will be some exceptions, though. Calls that are political, informational, or from banks, they'll get a pass.

Joining me to talk about the rule is Lois Greisman. She's with the Marketing Practices Division at the Federal Trade Commission.

You know, Lois, first of all, what do consumers need to do when they get one of these calls?

LOIS GREISMAN, FTC DIVISION OF MARKETING PRACTICES: It's very simple. If a consumer receives a call that he doesn't believe should have been placed to him, he should file a complaint with the Federal trade Commission. Just go to FTC.gov.

PHILLIPS: All right. Now, this all sounds fantastic, because we all are driven crazy by these calls on a regular basis. As a matter of fact, a lot of people I know have shut off their phone service at home and just gone with a cell phone because of the number of calls.

You know, Tim Searcy, who is the chief executive of the American Teleservices Association, this trade group whose members include telemarketers, he's actually come forward and said, "For the consumer, the behavior is going to look the same September 1 as it did August 31st." He went on to say, Lois, that "The ban will do little to stop calls that are touting illegal scams as well."

And that's what worries us the most, are a lot of these scams getting our elderly.

GREISMAN: Well, I'm not sure I fully agree with Tim on this. I think there are a lot of legitimate companies, legitimate telemarketers placing robocalls, and that they're going to stop on September 1. And they are going to comply with the law.

On the other hand, I think he makes a fair point, that a telemarketer engaged in serious fraud is likely not going to comply with the new rules. But that's why it's critical consumers file a complaint with the Federal Trade Commission, so we can track down those bad actors.

PHILLIPS: Now, I'm also reading here that -- and we mentioned this at the beginning, about the calls from politician, public service announcements, and informational calls will be exempt from this. In addition to banks, telephone carriers and most charitable organizations also excluded from the ban.

So, I mean, politicians, those are some of the worst offenders, especially during election time.

GREISMAN: Well, politicians do have special protections under the First Amendment. And what the Federal Trade Commission is focused on is calls that involve the sale of a good or a service.

PHILLIPS: So, bottom line, though, are we really going to see a difference in the number of calls when you see what you're going after, versus those that are still going to be allowed to make these calls?

GREISMAN: Yes, we absolutely do think there will be a difference. And we wouldn't have done this if we didn't think it would make a significant change for consumers.

As I mentioned before, we do believe and expect legitimate telemarketing industry, which currently uses a lot of automated calls, to comply with the new rules. And as I also mentioned, those engaged in fraud likely are not going to comply. But we will be on the job looking out for them and taking law enforcement action.

PHILLIPS: We'll follow up.

Lois Greisman with the FTC.

Appreciate it.

GREISMAN: Thank you.

PHILLIPS: All right. Let's talk about your home now and how far Uncle Sam is going to help you save it.

The administration's mortgage program was suppose to help people hold on to their homes. And that, supporters said, would help stabilize the economy. But the plan isn't always living up to its full promises.

We get more now from our national correspondent, Jessica Yellin.

(BEGIN VIDEOTAPE)

JESSICA YELLIN, CNN NATIONAL CORRESPONDENT (voice-over): Mark and Angela Kollar think they still have one shot left at holding on to their home.

MARK KOLLAR, HOMEOWNER: You and I will be discussing Making Home Affordable plan?

YELLIN: The president unveiled the Making Home Affordable program in March to rescue four million Americans drowning in mortgage debt. A CNN investigation found the program is not always living up to its promise.

ANGELA BACCA-KOLLAR, HOMEOWNER: I don't wish this on anybody, and I know we're not the only ones.

YELLIN: Here is how it's supposed to work. In return for taking all those bailout billions, the banks agreed to give a little back. Qualifying homeowners would see their mortgages slashed to 31 percent of their monthly income. But that's not what the bank offered the Kollars.

M. KOLLAR: You're holding my feet to the -- who is your supervisor there today?

YELLIN: The couple makes $3,000 a month, so their new Making Home Affordable loan should be 31 percent of that, about $1,000 a month. The offer they got -- $2,892, about 98 percent of their income.

M. KOLLAR: Now I feel like, you know, we've been -- what's the proper word? Screwed?

YELLIN (on camera): They're not alone. Speaking to housing counselors, consumer advocates and homeowners, we found endless complaints of banks rejecting apparently eligible homeowners or pressuring them into loans they can't afford. But by far, the most common complaint is that lenders keep giving homeowners the run around. Dropping calls, losing paperwork, all while the foreclosure clock keeps ticking.

(voice-over): The mortgage industry's top lobbyist says these are the growing pains of a massive program. Lenders are still hiring staff to handle all the application and he believes most complaints are from people who aren't eligible for the plan. Overall, he says it's a success.

JOHN COURSON, CEO, MORTGAGE BANKERS ASSOCIATION: This is a program where the interest of the homeowner and the interest of the lender are aligned because everybody wants to avoid that foreclosure and keep that loan on the books and the borrower in the home.

YELLIN (on camera): And how well is the program working? COURSON: The program is working very well. YELLIN (voice-over): But even Treasury Secretary Tim Geithner who oversees the program has demanded lenders do better. The latest numbers, 230,000, fewer than six percent of eligible homeowners have new loans through the program and some banks with the biggest bailouts have the lowest participation rates.

ANGIE MORESCHI, CONSUMERWARNINGNETWORK.COM: It comes down to money and it does not appear to be in the banks' financial interest in the long run to actually do these loan modifications and that's the sad reality that we are dealing with.

(END VIDEOTAPE)

YELLIN: So, Kyra, the banks say, look, they're doing the best they can.

As for the Kollars, Bank of America declined our request for an interview, but a spokesman with them tells us they base that offer on bad information they got from a government-approved housing counselor. And now that we've started making inquiries, well, they're reopening the Kollars' application and will temporarily offer them a reduced payment while they decide what to do next -- Kyra.

PHILLIPS: OK. Well, let's talk more about the administration doing even more to try and improve the program.

YELLIN: Well, look, we spoke with the administration. The official who runs the program told us in a statement that he thinks it's off to a strong start. He says that service or performance has been, in his words, uneven, but they say they're going to work with the banks to encourage the banks to do more, to treat the homeowners better.

Again, notice this is all about leaving it up to the banks to do better. The Treasury Department is not mandating. There's no law requiring the banks to take certain steps. Right now, it's about encouraging them to participate in a more cooperative way.

PHILLIPS: OK. We'll follow it with you.

Thanks, Jessica.

If you're in the middle of a mortgage nightmare, we want to hear your story, especially if you tried to get a mortgage modified under the Making Home Affordable program. Share photos or video and tell us about your home at iReport.com.

The House of Mouse is adding on. A major merger will bring Mickey Mouse and Spider-Man together under the same roof.

CNNMoney.com's Poppy Harlow has the details now.

Hey, Poppy.

POPPY HARLOW, CNNMONEY.COM: Hey. A big deal announced this Monday morning, Kyra. Disney buying Marvel Entertainment. It's a $4 billion cash and stock deal.

Disney, what they're going to get about 5,000 of those Marvel characters you see on your screen. We're talking the Iron Man, X-Men, The Hulk, Fantastic Four. And this comes on the heels of that big Disney purchase of Pixar back in 2006. It was wildly successful for Disney, led to "Cars," which was huge for Disney, also movies like "Wall-E."

We spoke with the CEO, Bob Iger, this morning, and he told me he hopes that this deal with Marvel will be as successful as Disney's tie-up with Pixar. Take a listen to what he said.

(BEGIN VIDEO CLIP)

ROBERT IGER, DISNEY CEO: This is perfect from a strategic perspective, because what we're all about is taking great content -- or making great content and distributing it to people all over the world on, in these days, just about any platform imaginable. And this treasure trove of over 5,000 characters and the richness of their stories offers Disney exactly what we love to do the best and what we do the best.

(END VIDEO CLIP)

HARLOW: All right. Well, what Disney does the best, what they make a lot of money off, Kyra, is reaching across multiple platforms -- the licensing, the video games, the theme parks, the online assets that they get from these properties, like the Jonas Brothers or "Hannah Montana."

And it's interesting. Disney's strategy is you can reach both the grandparents to buy for their grandkids, and everything in between. So, this is a big boon for Disney, at least in the front run. We see Marvel's stock up about 25 percent on that news. Kyra.

PHILLIPS: Wow.

Well, Marvel is big here in the U.S., but how does Disney see this working to its advantage overseas?

HARLOW: Yes, it's definitely a global play. I sat down with Bob Iger, the CEO, about a month ago, and I asked him, you know, what's next for Disney, even in this economic environment? And he talked a lot about emerging economies, like China, like India. And these places are huge for Disney.

They have products and movies over there by Disney that we never see here in the United States. And it really does sound like Marvel is going to add to that push abroad for Disney.

Take a listen to how he answered that question.

(BEGIN VIDEO CLIP) IGER: Well, there's definitely global appeal to these characters and stories, as we've seen with Disney. And that's one of the attractive elements of Marvel to us.

I can recall not that long ago, as a matter of fact, being in China and seeing some kids with Spider-Man T-shirts, for instance. And so, as we look at Marvel, we see, in many respects, another Disney.

(END VIDEO CLIP)

HARLOW: All right. We'll see how that merger goes.

But I'll leave it at this -- the deal should help Disney, Kyra, in terms of its appeal to boys. That's something they've been working on. You know, all boys love X-Men and Iron Man and all of that.

You can see that full interview. It's on the site, CNNMoney.com -- Kyra.

PHILLIPS: Sounds good. Thanks, Poppy.

HARLOW: Sure.

PHILLIPS: CNN's chief business correspondent -- the suit's off, the casual road trip wear is on, and the bus is fired up. Oh, yes. Giddy up.

Ali Velshi and the CNN Express back on the road listening to you. You helped to make their first road trip such a success, hey, why not hit the road again?

That's Sam, by the way.

(COMMERCIAL BREAK)

PHILLIPS: Top stories now.

I-Reports from the fire lines north of L.A. I-Reporter Trisha Maas sent us remarkable shots of the Station Fire racing through Angeles National Forest.

And check out the smoke. When iReporter Marie Sager saw this from her back door, she thought it looked like a nuclear bomb. And there's almost no wind to blow the smoke away.

A major development in Washington's attempts to build a memorial to those killed on United Airlines Flight 93 on 9/11. We hear it's coming, but we don't know what it is yet. For years now, the government has tried to negotiate the purchase of hundreds of acres of Pennsylvania farmland.

Interior Secretary Ken Salazar has scheduled a news conference for 3:00 p.m. We're going to monitor it.

And religious broadcaster Pat Robertson is said to be doing great after 10 hours of heart surgery 12 days ago. The founder and mainstay of the Christian Broadcasting Network had suffered from a rapid, unregulated heartbeat. He's 79 years old.

One mobile home, eight people dead, no known suspects, and very few answers outside the crime tape. That's where things stand in the town of Brunswick, near the Georgia coast. The lack of answers feeding fear in the community. And right now, the only real hints come from some haunting 911 calls.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: I just came home, and his whole family is dead.

PHILLIPS (voice-over): A chilling 911 call from a neighbor after the discovery of a family in a Brunswick, Georgia, mobile home park. Seven people dead, two others found in critical condition.

UNIDENTIFIED MALE: Tell them to hurry. They think Michael's still alive.

PHILLIPS: Later, one of the victims, 19-year-old Michael Toller (ph), the only person identified by police so far, passed away.

The call came after this man, Guy Heinze, made the discovery and ran to his neighbor's home for help.

GUY HEINZE, CALLED 911: I was out last night. I got home just now and everybody's dead. My dad's dead...

PHILLIPS: Heinze was arrested on drug charges, evidence tampering and making false statements to a police officer.

CHIEF MATTHEW DOERING, GLYNN COUNTY, GEORGIA, POLICE: I did not classify him a suspect. I still remain as such, but I certainly don't rule him out either.

PHILLIPS: Police Chief Matthew Doering says they are still searching for leads.

DOERING: We still believe now, as I did earlier, that the person or persons responsible for these deaths still remain unknown to us.

PHILLIPS: Doering has remained tight-lipped about this case, not identifying most of the victims or saying how they died.

DOERING: If you knew what I knew, you'd understand why I've been less than completely detailed.

PHILLIPS: The uncertainty is leaving neighbors in this coastal town shocked and worried.

UNIDENTIFIED FEMALE: We have a young child. And we go outside a lot. And now I don't want to be here right now, with everything that's going on, especially if there's a suspect at large. UNIDENTIFIED MALE: You know, it makes you worry bad. I mean, I don't know if it was somebody inside the home that done it, or it could have been somebody, you know, just passing through.

PHILLIPS: Police are offering a $25,000 reward. They're telling the Brunswick community to remain cautious and report any suspicious activity.

(END VIDEOTAPE)

PHILLIPS: The 911 call indicates the victims were beaten, but Glynn County police have not confirmed that yet.

(COMMERCIAL BREAK)

(WEATHER REPORT)

PHILLIPS: Just while I have you, California fires, can you just update us real quickly about that?

CHAD MYERS, AMS METEOROLOGIST: Now, look at this. This is an absolutely live broadcast from KABC.

Look at these fires. I mean, just taking off.

A lot of times we'll talk about how the white smoke is there, which means things are smoldering. When we see black smoke, he know a house is engulfed. This is burning so fast right now, that it's engulfing the forest, and the forest is actually making black smoke.

It's -- boy, I'll tell you what, 58,000, 90,000 acres now. That's 130 square miles. Square miles. I mean, you're talking a large distance here. We're not just talking some small little landmass.

We'll go up here. Here's Los Angeles. And I can take you a little bit farther to the north and up here into the mountains.

And this is where it is. And this is the problem. You can see it on the picture there as well, but look at the topography here around Mt. Wilson. It's just a rough area.

It's north -- the canyons through here -- right through the one canyon to the other. And Mt. Wilson, the observatory right there, that's the area that has millions and millions of dollars worth of equipment on top of it, anywhere from that big -- obviously the big telescope, to a whole bunch -- like, 20 or so earthbound radio and TV antennas.

But look at all of this. I mean, now, this is just -- this is a serious, serious fire. I mean, when you get this much square mileage now, and only five percent contained, which is -- a couple of days ago, it was 10 percent contained. So, containment is literally not even -- you can't even use those numbers.

PHILLIPS: Well, and you bring up a good point. I mean, I remember being a reporter in Los Angeles, and that's where we would link in all our live shots, was there, trying to get a signal off of Wilson.

MYERS: Oh, sure.

PHILLIPS: You know another thing too, Chad? Part two to this, I mean, California's in this horrible budget situation. And this is just costing -- it's unbelievable what this is costing with the firefighters and what they have to do on the ground and by the air. And they've got firefighters coming in from all over, not only all over the state, but firefighters also coming in from other states to try and help out with what's not only an environmental disaster, but a financial one as well.

MYERS: This will be a very terrible fire season. I'm just going to make that prediction because that's what weathermen do. It has been a -- years and years worth of drought. This area here hasn't burned for 40 years. The shrub -- there are pines, Douglas Firs burning -- it's going to be a tough with every bit of this state -- every single square mile under some type of drought condition right now.

PHILLIPS: We'll track it. Thanks, Chad.

MYERS: Sure.

PHILLIPS: Quick break. More from CNN NEWSROOM straight ahead.

(COMMERCIAL BREAK)

PHILLIPS: President Obama and family back at the White House after what was billed as a pretty nice vacation on Martha's Vineyard. No presidential vacation is a true holiday. Mr. Obama received almost daily briefings, plus he traveled to Boston for the funeral mass of Senator Ted Kennedy. The White House says today that it's a down day for the president. On Wednesday, the Obamas give the vacation another shot with a five-day visit to the presidential retreat at Camp David over the Labor Day weekend.

May be a down day for President Obama, but it's warpath time for those taking part in a cross-country bus tour called the Tea Party Express. The group's in Las Vegas at this hour. And CNN's all- platform journalist Jim Spellman is there. We should talk what's the point of the Tea Party Express and what's with the Tea Party symbolism? What's there?

JIM SPELLMAN, CNN ALL-PLATFORM CORRESPONDENT: What the Tea Party Express is really aiming to do is take a lot of grassroots effort and people upset with President Obama and bring them together into a more cohesive, powerful political entity. What they're doing in each town, there's different issues that might resonate. More health care in one place, gun control in another place.

Here in Las Vegas, one of the biggest issues is jobs. Unemployment rate is 13 percent. Been hitting on jobs a lot at this event. Here's what one of the organizers, Mark Williams, told me on the bus on the way to today's event here in Las Vegas.

(BEGIN VIDEO CLIP)

MARK WILLIAMS, TEA PARTY EXPRESS ORGANIZER: Folks down here in this part of Nevada, where 70 percent of the population is, are really upset because they depend on the gaming industry for their livelihood. And that's in kind of a funk right now. So, unemployment is a big issue down here. Out here in a place like Nevada, there's a real feeling they're not being heard in Washington.

(END VIDEO CLIP)

SPELLMAN: And it's really working here. People earlier were chanting jobs, jobs, jobs, and some not-so-nice things said about Harry Reid as well. They're really kind of marrying people's being upset about jobs and Harry Reid together and trying to put together this cohesive message. Right now, we're hearing musicians. They're traveling. They just finished a song called the U.S.S. of A. that sort of posits (ph) America as sort of a Soviet republic. So, there's a lot of fun stuff mixed in with the speeches for th Tea Partiers here in Las Vegas, Kyra.

PHILLIPS: So, Jim, overall, pretty peaceful?

SPELLMAN: Totally peaceful, all of the events. This is the sixth one, I believe, so far of the tour. Totally peaceful. Spirited, there's a bit of an edge with some folks, definitely a lot of anger about what people perceive happening with the administration. But totally peaceful so far. Kyra.

PHILLIPS: All right. Jim Spellman, thanks so much. He's our man on the road.

The other man on the road besides Jim is Ali Velshi. This hour, heading for Evansville, Indiana, on the CNN Express. Until last week, the city was known as the refrigerator capital of the world. But now Whirlpool, we get word, is packing up and moving out. Ali joins us on the phone now from Tennessee on his way to Evansville. Not good news that you're going to come across there?

ALI VELSHI, CNN CHIEF BUSINESS CORRESPONDENT: Not at all. We're making a long stretch. Usually, we stop a little more frequently. But we're heading right from Atlanta to Evansville, Indiana.

I misspoke a little earlier when I talked to you. Here's what's happening. Whirlpool is shutting down a factory there that makes refrigerators. 1,100 people will be losing their jobs sometime in mid-2010. Another 300 people are employed in a product development operation of Whirlpool's in Evansville. They're not sure what they're doing with that, either. But the company is saying they're being hit by really reduced demand for refrigerators, partially because a lot of demand was going into new houses, new construction. Obviously, that's dropped off with this recession.

So, we're heading to Evansville. We're going to speak with townspeople about the impact on their lives. Particularly in light of everybody saying -- or a lot of people saying the recession might be starting to bottom out, and this might be the end of it. That is good news, unless you find out that you're one of those 1,100 people -- part of those families losing their jobs.

We want to find out how they're planning to cope with it, what the company is doing about it. The production, Kyra, they're saying will probably move to Mexico where it's less expensive to produce. They say they've just been hit by a massive decline in people buying these refrigerators. Again, while we may be coming to the end of the rescission, we might be seeing strong markers, we might be seeing home prices stablizing, the fact is, jobs are still being lost across America. And that's what's going to have an impact on the way people behave and the way they spend and think.

PHILLIPS: We'll be talking, Ali. Appreciate it.

We've been talking about your health care. But how healthy are the levees in New Orleans, the ones that are supposed to keep people safe, the ones that failed so infamously four years ago? Are they ready for the next big storm? That answer depends on whom you ask.

(COMMERCIAL BREAK)

PHILLIPS: Deadly, dangerous and still growing. That's the bottom line on that huge wildfire north of Los Angeles. Two firefighters have been killed, 18 homes destroyed. The blaze literally doubled in size overnight. There's a lot to brush the burn. There hasn't been a major fire in that region in 40 years.

Twin themes of just-finished war review by the top U.S. commander in Afghanistan are that the situation is serious, but the U.S. can succeed. General Stanley McChrystal says the Taliban have considerable influence over a third of that country. Also learned today that foreign NATO troops, two Americans and two British, were killed today in Afghanistan.

And this just in to CNN. Oklahoma State is the latest college campus to come down with a case of the flu. Eighty-four cases have been reported since last Thursday, and three cases of H1N1, or swine flu, as it's often called, have been confirmed. According to the university, all of flu cases so far have been mild.

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PHILLIPS: Momentum growing to fill the late senator Kennedy's seat on Capitol Hill. We just got this in to CNN. Massachusetts political sources telling us that state lawmakers plan to hear a Senate succession bill in just a week and a half. Lawmakers are under pressure to pass a change allowing the appointment of an interim senator to fill Kennedy's seat. We're expecting to hear from Governor Deval Patrick at the top of the hour.

Four years and three billion dollars after Katrina. The levee system in and around New Orleans is still a work in progress. Even so, we're told there's just one percent chance that the flood control structures could fail in any given year. And that will have to be good enough for the couple our Sean Callebs met in the Lower Ninth Ward.

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SEAN CALLEBS, CNN CORRESPONDENT (voice-over): In New Orleans, water everywhere. Rivers, canals, lakes. It can be beautiful. But after the storm, everyone here knows that in a heartbeat, that water can turn into a monster.

GWEN ADAMS, KATRINA VICTIM: I don't feel that I'll ever feel as safe as I did pre-Katrina.

CALLEBS: Gwen and Henry Adams. She's a teacher, he drives a taxi. They've lived their entire lives here in the Lower Ninth Ward. It was only about 50 yards from a floodwall that broke. The storm wiped them out and killed their neighbor. And yet, as hard as it is to believe, they're rebuilding in exactly the same place and moving back.

(on camera): Do people ask you, why are you moving back into the area that's so close to the...

G. ADAMS: To the levee? People ask us that all the time. And I'll tell them like I'll tell you, because it's my home.

CALLEBS (voice-over): In the four years since the storm, the Army Corps of Engineers has spent $3 billion to repair and upgrade levees and install other flood protection. By 2013, four years from now, it will have spent more than $14 billion. Colonel Robert Sinkler runs the project here.

COL. ROBERT SINKLER, U.S. ARMY CORPS OF ENGINEERS: I'm not going to say that folks here will have nothing to worry about, but we're reducing hurricane risk. And there's always risk of a bigger, larger storm.

CALLEBS (on camera): The Corps of Engineers insists New Orleans has never been safer. The work going on here is scheduled to be done in 2011 and designed to provide 100-year storm surge protection. That means each year, there's a one in 100 chance this system could be put to the ultimate test.

IVOR VAN HEERDEN, DIRECTOR, LSU HURRICANE PUBLIC HEALTH: It's the water going underneath.

CALLEBS (voice-over): This man, Ivan Van Heerden, is a long-time critic of the Army Corps of Engineers and its safety claims regarding New Orleans. He's the director of Hurricane Public Health at Louisiana State University. Ask him is the city safer, and you get a definite yes and no.

VAN HEERDEN: What is better is that where it broke, it's being fixed. But there's still some old weak spots in the system. So, a Category 2 on the right track, slow-moving, could flood parts of the city. Another Katrina would definitely put water all over the levees in many, many different locations. CALLEBS: As we takes us to a place to show us what he's talking about, he tells us his losing his job. LSU is eliminating his position. He says it's punishment for speaking out. LSU says it can't comment on personnel matters.

VAN HEERDEN: Before Katrina, we were saying, get out with a Category 2 or above. We haven't changed that message. Get out. It's still (INAUDIBLE) unsafe.

CALLEBS (on camera): This is the weakest of the weak links surrounding New Orleans. This is the Mississippi River Gulf Outlet, or Mr. Go. Built by the Army Corps of Engineers about a half century ago to provide a shorter route for ships for the Gulf of Mexico to New Orleans Port. Katrina's winds forced a wall of water down this waterway. The city didn't stand a chance. Some engineers now say about 80 percent of the flooding in New Orleans can be traced to Mr. Go.

(voice-over): Many critics blame the Corps. After all, they built it. And that's one reason the Corps is rushing to close it. Building a 24-foot wall that spans two miles and will close the funnel.

SINKLER: A project like this historically would take decades or over a decade to construct. We're doing it in just a few years.

CALLEBS: The tremendous damage caused when Mr. Go became overburdened also prompted a massive class action lawsuit against the Corps. If the Corps lose, it could cost hundreds of billions of dollars.

That brings us back to Gwen and Henry Adams. They're plaintiffs in the suit.

G. ADAMS: One day, you're a viable human being, working, contributing to your -- society. And the next day, you're wondering if you're homeless.

CALLEBS: Water everywhere and about 350 miles of levees stretching about the distance from Washington, D.C. to Boston. But the Corps says it's safer now than ever before.

G. ADAMS: I say, prove it, because we can't endure another Hurricane Katrina. We can't endure another disaster like that.

CALLEBS: She hopes the rebuilding works. But she's skeptical. After all, the way she and so many others here see it, the Army Corps built the system in the first place.

Sean Callebs, CNN, New Orleans.

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PHILLIPS: An update now. Remember we told you about the military admitting to paying a PR firm, the Rendon Group, to help analyze the media? There was an accusation that journalists who wanted to embed with the troops and cover the war in Afghanistan were actually graded and may be approved or rejected based on how much good news they had reported about the military. There was quite a bit of denial, clarification, just ask general back-and-forth over the story. Bottom line, the Pentagon has cancelled the one-year, $1.5 million contract with the Rendon group.

As always, Team Sanchez working on it back there. What have you got?

RICK SANCHEZ, CNN ANCHOR: We got three fascinating stories. But none seems as fascinating as this ongoing situation that's developing in Brunswick, Georgia. You and I have both covered in local news and here at CNN mass slayings like this. But what's so odd about this is how little information is coming out of the police. I mean, you have nine people down, eight of them are now dead. They're all found inside this home. And now we understand, according to police who are going to be holding a news conference in just a little bit -- we'll finally be able to get a little bit of information, they're not saying how they died or who did it.

Residents in the community want to know hey, is there a killer out there or somebody we should be concerned about what may be attacking another family soon?

Meanwhile, there's a 911 tape that's just been released, and in that tape you hear the voice of the person who first comes across the bodies. And he's describing what he's seeing, and he's been arrested for tampering with the evidence. But there are clues in what he has to say that answer some of the questions that I was just posing. So, all this is going to come together in just a couple of minutes here. It's pretty exceptional stuff, Kyra.

PHILLIPS: All right. We'll watch. Thanks, Rick.

SANCHEZ: Sure.

PHILLIPS: They gave direction to the counterculture, to the '60s, to the Baby Boomers. Why shouldn't he give all of us direction to the closest tie place? Bob Dylan talking to a couple of car companies about being the voice of their GPS systems? Yes, the guy who asked, "how does it feel to be on your own with no direction home?", the icon you can barely understand could be telling you where to exit for the closest Waffle House. Good luck with that.

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PHILLIPS: All right. You better take an atlas. We love Dylan here, but James Earl Jones he ain't.

A child believed lost forever reunited with his dad half a world away. His amazing story from Beijing.

(COMMERCIAL BREAK) PHILLIPS: At first glance, it's one of those stories that seems too good to be true. A little boy disappears from his parents, his fate unknown for 11 agonizing years. Finally a search on the Internet made the impossible possible. CNN's John Vause reports from Beijing.

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JOHN VAUSE, CNN INTERNATIONAL CORRESPONDENT (voice-over): In an instant, it all came out. Anguish, guilt and joy of finding a child they thought was lost forever. Eleven long years ago. That child is Christian Norris, 17 now and seemingly unmoved by this outpouring of emotion, perhaps because both men, his birth father and uncle, are distant members.

CHRISTIAN NORRIS, FORMERLY MISSING CHILD: I don't really remember my dad that much. I just remember my uncle a lot. He raised me most of the time.

VAUSE: Christian was raised in this small village always thinking his uncle was his father because his parents, doctors in a nearby town, had two sons violating China's strict one-child policy.

UNIDENTIFIED MALE (through translator): They felt conflicted; they were afraid it might affect their jobs. So they brought him to me.

VAUSE: When he was six, Christian went to live with his birth parents so he could attend school and was told they were a foster family. But after a few months, as he returned home to the village by bus, he disappeared.

The details aren't clear, but it could have been up to a year later when police brought him to an orphanage hundreds of miles away in a neighboring province. Eventually adopted by Julia, a volunteer at the orphanage from the U.S.

(on camera): Did you expect that outpouring of emotion when his uncle and his dad just grabbed him and broke down crying?

JULIA, ADOPTED CHRISTIAN NORRIS: No, not that much. It was heartbreaking. My heart breaks for the family that they've missed out on these years with him.

VAUSE (voice-over): Painful years of never knowing what happened.

UNIDENTIFIED MALE (through translator): I've had a sickness in my heart, and today I can say it has been cured completely, says his birth father.

VAUSE: This reunion was set in motion three years ago when Christian asked to find his family in china. Their first day together spent touring Beijing, holding hands, slowly reconnecting.

(on camera): Christian's past might be here in China, but he's grown up American, spending most of his life in the United States. And for now, at least, that's where he says he sees his future. (voice-over): A decision which his Chinese family say they'll respect but...

UNIDENTIFIED MALE (through translator): He's grown up taller, bigger but inside, Chinese blood is still flowing in his veins, says his father.

VAUSE: After so many years have passed, they're hoping not to let go again.

John Vause, CNN, Beijing.

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PHILLIPS: That does it for us. We're back here tomorrow. Rick Sanchez picks it up from here.