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Angry at IRS; Tiger Wood's Mea Culpa; Foreclose This; New Arms for Wounded Vets; Fed Raises Discount Rate; Dell Disappoints; Sliding for Redemption

Aired February 19, 2010 - 09:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: Thanks, guys. Here's what we've got for you right now.

Driven to destruction by foreclosure. If a man can't keep the house he built, well, the bank can't have it either.

Does President Barack Obama really have a vendetta in Vegas? The mayor sure thinks so. Obama laying out all his cards and you'll see it live on CNN.

How can anyone live without arms? Well, an inventor struggles to grasp the answer, but eventually wraps his arms around a life-changing discovery.

And here's where all our reporters are right. He was angry with the IRS, so he flew a plane into its office? What his Internet manifesto reveals.

Tiger is at a sex rehab and ready to apologize. Susan Candiotti live in Ponte Verde, Florida.

And the winter of our discontent. Rob Marciano targets the storm of the day.

You think you've been angry at the Internal Revenue Service. Well, investigators now believe a man from Austin, Texas carried that anger to the extreme.

Here's what we know right. It's believed that 53-year-old Joseph Andrew deliberately flew his single engine plane into a building with IRS offices. Plus investigators say it also appears Stack set his own house on fire before taking off, and it looks like he was on a suicide mission. Sack and one other person in the building were killed. Thirteen others injured.

Ed Lavandera, in Austin now, with more details on the story.

(BEGIN VIDEOTAPE)

ED LAVANDERA, CNN CORRESPONDENT: The events of the day appeared to have started in this neighborhood in north Austin. Joseph Stack owned that red brick home and neighbors tell us that shortly after 9:00 in the morning, they found it completely engulfed in flames. (voice-over): The flames shot out of the house intensely. Neighborhoods rushed to call 911 as they saw Stacks' wife and stepdaughter run up to the house, but no one could imagine what was about to unfold across the city.

SHANNON HOUSTON, NEIGHBOR: I saw, of course, the flames and the smoke, and a little while later I saw a little girl crying, she was crying really hard, and she ran into my neighbor's house. And it appeared to be her mother, it was an older woman, she ran in behind her.

LAVANDERA: From this neighborhood it would be a 20 to 30 minute drive to the airport where Stack's small plane was allegedly waiting for him with a full tank of fuel.

(on camera): This is the Georgetown Municipal Airport. Authorities say Joseph Stack took off from here at 9:40 in the morning. He was in a four-set (INAUDIBLE) aircraft. And a witness actually told CNN he waved to him as he left the hanger, and the only runway here takes over toward Austin, right over that tree line.

(voice-over): Sixteen minutes later at 9:56 in the morning, Stack's aircraft emerged on the horizon. The building with nearly 200 employees inside in sight.

(on camera): Witnesses tell CNN that Stack came out of the sky here appearing to aim for a building. He probably would have flown past the home that he owned and seen it engulfed in flames before the flight ended here crashing into that building.

UNIDENTIFIED MALE: I saw something fall in the sky and a big fireball kind of shoot out.

UNIDENTIFIED MALE: The building shook and the lights went off and then the lights flashed on, and then the roof came in and it felt like stuff fell on top of us.

LAVANDERA (voice-over): The crash killed the pilot, Joseph Stack, and one person in the building. Thirteen others were injured, two of those taken to hospitals. Despite an angry online message railing against the IRS, Investigators are not saying what motivated Joseph Stack.

CHIEF ART ACEVEDO, AUSTIN POLICE: I personally consider this a criminal act by a lone individual.

UNIDENTIFIED REPORTER: How do you make that definition? How do you differentiate domestic terror versus criminal act?

ACEVEDO: Well, it is a person that attacked a building. What his motivations are will be determined at a later date.

LAVANDERA: Ed Lavandera, CNN, Austin, Texas.

(END VIDEOTAPE) PHILLIPS: So just who was Joseph Andrew Stack? Well, this was him on the right in the hat. Just two years ago he was playing base guitar, the accordion and actually singing in a band. This photo is from the band's Web site.

Stack was a software engineer who had moved from California to Austin. And David Mattingly actually spoke with one of his band members. We're going to hear what he had to say at the half hour.

Well, Congress is going to get their shot at Toyota's top man. Akio Toyoda says that he'll testify after all. Earlier this week he had said no way. A House oversight committee is looking into the accelerator recalls. They want to know what took so long. It's one of three congressional hearings on Toyota scheduled for the next two weeks.

And talk about must-see TV. Two hours from now Tiger Woods faces the camera for the first time since his fall from grace, but don't expect a tell-all.

Susan Candiotti is live in Ponte Verde, Florida, awaiting this very carefully orchestrated apology -- Susan.

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: That's true, Kyra. You know, Tiger Woods obviously is known around the world and the world is dying to hear what he has to say.

Here's what we're going to be hearing it or seeing it. See that building over my shoulder? That is a hotel ballroom where the press will be set up, and we will be watching like many of you will be, via television.

We'll be seeing it on closed-circuit television that's because Tiger Woods is actually going to be about a mile or so away from here at the PGA Tour clubhouse. Tight security, as you indicated. In fact they won't even allow a camera outside the building to get a picture of him going inside.

In fact they're even doing a security sweep of that room where he is going to be making his apology before the press is allowed to go back in a pool camera to take video of him making that statement.

So a lot of people want to know after he says what he is going to say, will he be able to win back his fans?

(BEGIN VIDEOTAPE)

CANDIOTTI (voice-over): With Tiger Woods' personal and professional life mired in the rough, can an apology get him back on course?

LAUREN MACKLER, AUTHOR, "SOLEMATE": This new image that he has is incomplete contradiction to his wonder kin, golden boy image that he's had since he was really little. So I'm sure that it's a very humiliating and devastating and embarrassing experience for him.

CANDIOTTI: His agent says the world's most infamous golfer knows it's time for him to make amends, and today's mea culpa is step one.

LARRY WOODARD, VIGILANTE ADVERTISING: Potential sponsors really are looking for Tiger to accept the baggage that he has, take those bags, walk out of the room with them, change into his golf clothes and win in a spectacular fashion.

CANDIOTTI: Those bags have been following him since the car wreck heard around the world. On his Web site, Woods admitted cheating on his wife, Elin. His agent says Tiger has been in therapy for his problem.

Until this photo of him jogging emerged this week, Tiger has gone virtually unseen.

KATE COYNE, EDITOR, PEOPLE MAGAZINE: He has done a masterful job at staying under wraps.

CANDIOTTI: "People" magazine reports the couple has been living apart. Elin and their two children in the couple's sprawling Florida mansion. Tiger in the home in the same private development.

COYNE: She's kept things very normal for the kids. She continued to take them to their classes and lessons and playdates.

CANDIOTTI: The scandal also has caused him financially. Accenture and AT&T dropped their sponsorships, though Nike and EA Sports are hanging tight.

But will wife Elin stand by her man?

COYNE: I think most people are going to be very surprised if she's at this press conference, that it would just be humiliating for her.

CANDIOTTI: Humiliating for her, annoying for some players on the tour. Like Rory McIlroy.

RORY MCILROY, GOLFER: I'm sick of hearing about it.

CANDIOTTI: The PGA Tour is standing firmly by his side. Without Tiger ratings and revenue sink. Could a comeback make him more popular than ever?

MACKLER: More people know him than knew him before. More people will be curious than were before.

(END VIDEOTAPE)

CANDIOTTI: I think he's probably right about that. Now at a press conference the PGA Tour's commissioner said he is not sure when Tiger will return to golf after he finishes rehab. So that clearly is an indication that Tiger Woods has not yet completed his therapy. Kyra?

PHILLIPS: All right, Susan, we'll be talking more. And a lot of people may hang on Tiger Woods' words this morning, but here's one thing for sure. The golf riders will not be. They're actually boycotting it.

(BEGIN VIDEO CLIP)

JIM GRAY, CORRESPONDENT, THE GOLF CHANNEL: I do want to tell you this. We were just given this news that the Golf Riders Association that had three seats tomorrow in the room with Tiger to listen to this along with the wire service, three people from each wire service, and one pool camera.

Well, the Golf Riders have pulled out and will be boycotting the session. They do not like the premise and they do not like the fact that they will not be able to ask any questions.

(END VIDEO CLIP)

PHILLIPS: Well, we'll have Tiger Woods' apology for you 11:00 a.m. Eastern and on CNN.com.

And Tiger is all the talk on our blog this morning. We're asking whether you'll accept his apology. Why or why note. Just go to CNN.com/Kyra, post your comments. I'll read some of them on the air next hour.

Back at home from Haiti to a hero's welcome. Three of the Americans jailed in Haiti on kidnapping charges arrived back in Boise, Idaho late last night. In all, eight of the 10 Americans were allowed to come home.

They're still accused of trying to take 33 children to the Dominican Republic. Two were told to stay behind in Haiti and actually were supposed to appear in court yesterday. Their interpreter called in sick.

Put your tray tables and your seat backs into the upright lock position. We're landing in Haiti. But first post-quake commercial flight scheduled to land in Port-au-Prince in just a few minutes. It took off from Miami this morning after a small delay.

Raising their voices to God and then dodging bullets. Remember this? It's not what you expect when you go to church. Now police may have nabbed the person who pulled the trigger.

ROB MARCIANO, CNN METEOROLOGIST: I'm Rob Marciano in the CNN Severe Weather Center. Storm rolling across the plains, kind of a warm-up to what's headed into the west coast this weekend.

Weather is coming up after the break.

(COMMERCIAL BREAK)

PHILLIPS: In California, one minute they were singing to the Lord, the next minute they were ducking bullets. It was quite an outrageous seen in Richmond and police say a 15-year-old boy may have pulled the trigger right here.

Witnesses then said that three-hooded guys walks into the church, paced the aisle then they opened fire. Two teens were shot, luckily they survived. Richmond police are looking for more suspects and a motive. The teen arrested has been charged with suspicion of conspiracy to commit a crime.

And foreclosure this. An Ohio man found a new way to fight back against the bank. He'll give them the house but it's up to them to put it together.

We get more now from Courtis Fuller of affiliate WLWT.

(BEGIN VIDEOTAPE)

TERRY HOSKINS, HOMEOWNER: Took three years and eight months to build it. It only took two hours to take it down.

COURTIS FULLER, WLWT REPORTER: You are looking at a home valued at well over a quarter million dollars in Claremont County. This is how it looked until two weeks ago. Today, it is a pile of rubble. Covered by snow.

HOSKINS: When I see that I owe $160,000 on almost a $350,000 home, and somebody decides they want to take it, I wasn't going to stand for that, so I took it down.

FULLER: You heard him right, he bulldozed his home. To say Terry Hoskins knows how to make a point is an underestimate.

IRS liens on Hoskins' carpet store and other properties led to River Hills Bank in New Richmond eventually coming after his home.

What you might find strange is.

HOSKINS: They stated even though -- you know, Mr. Hoskins has never missed a payment on his house, it's cross collateral, so we can take that also.

FULLER: Why on earth would someone bull doze a $350,000 home? He tells me it's to send a message.

HOSKINS: And hopefully from this, people will stand up and maybe, you know, call their bank and tell them, hey, listen, you know what, I'm not going to let you do this to me.

(END VIDEOTAPE)

PHILLIPS: And get this. Hoskins may not even be done yet. He says he may knock down his business as well. It's supposed to be auctioned off by the IRS next month.

Kind of looks like crop-dusting, doesn't it? Well, it's not. It's actually ice dusting. Planes dropping coal ash on ice jams along an Omaha river. That ice is 15 to 20 inches thick in some places. The ash is supposed to melt the ice faster to avoid flooding problems.

Rob Marciano, pretty creative.

MARCIANO: Yes.

PHILLIPS: I have never seen that before.

MARCIANO: How they do that?

PHILLIPS: Yes.

MARCIANO: I'm not sure about the chemical process -- you know, it's going to draw up more sunlight, that's for sure. Then that will help melt things a little bit. You know they had those big dust last year along the river in Fargo so they're doing everything they can to make sure that's not a repeat performance.

(WEATHER REPORT)

PHILLIPS: Thanks, Rob.

A dog attack get the most unusual place. Torn clothes from the little victim and you won't believe who owns the dog.

(COMMERCIAL BREAK)

PHILLIPS: Top stories now.

A dog attacked a small girl at Dulles airport in Washington. But that's only half of the outrageous story. We're talking about a dog in the Customs and Border Patrol Canine program. And to make matters worse, the dog was with its handler when it attacked the 4-year-old. Then the 4-year-old's grandmother was bitten when she tried to pull the dog off of her. Customs folks say they don't know why the animal attacked her. The little girl had to have more than 20 stitches.

From bad dog to good dog now. A man from Queens, New York says he was nearly electrocuted while walking his pooch.

(BEGIN VIDEO CLIP)

JAMES EVANS, DOG SAVED HIM FROM ELECTROCUTION: We both started being zapped. I mean like high voltage going through me, burning me. And all of a sudden I felt the big yank, it's where he jumped over the pile of snow and he yanked himself up into the street and he pulled me and snatched me down to the ground.

(END VIDEO CLIP)

PHILLIPS: That was James Evans. Take a look at his buddy Max. Evans says Max's paws and skin were burned by the electrical current. And let me tell you, these two shared quite a bond. Evans refused to ride in an ambulance after the EMTs told him Max wasn't allowed onboard. And as for what caused that surge, the power company believes it was faulty wiring.

Usually you want teachers to keep an eye on your kids. But in Pennsylvania, they may have gone too far. Lower Marion School District is getting sued for spying. Parents say one high school is using Web cams embedded in schools issued computers at home. (BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I received an e-mail from my daughter who's very upset, saying mom, I have that laptop open all the time in my bedroom, even when I'm changing.

UNIDENTIFIED MALE: Everybody is pretty disgusted. We all -- we all have the computers and they're around all the time.

UNIDENTIFIED MALE: I think it's a little scary that they may be spying on us, but I don't really know if that's true or anything so we'll just have to see how it turns out.

UNIDENTIFIED FEMALE: This is no different than sticking a camera in a locker room at a fitness center. Or in a changing room in a department store.

(END VIDEO CLIP)

PHILLIPS: The school denies they did anything wrong. A security feature allows the webcam to be turned on if the computer is stolen. That's now been disabled.

An inventor started with a daydream. How do you live without an arm? Fifteen months later, that dream becomes a reality. A remarkable breakthrough means hope for people needing a hand.

(COMMERCIAL BREAK)

PHILLIPS: Well, the brother of a senior Taliban leader taken out by a U.S. missile strike in Pakistan. Pakistani intelligence people say that the attack happened in north Waziristan (ph) near the Afghan border last night.

They say the main target was a Taliban commander, not his brother. It's unclear if he was hurt in that strike. In addition to his brother, three close associates were also killed.

An inventor started with a daydream. So how do you live without an arm, he wondered. Fifteen months later, that dream became a reality.

Our chief medical correspondent, Dr. Sanjay Gupta, introduces us to him.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT (voice-over): His latest obsession, a device to help wounded troops coming home from the wars in Iraq and Afghanistan.

(On camera): We're in the offices of Dean Kamen. It's called Becker Research. Some of the brightest minds really. Most productive minds really in the country as well. Working on projects all the time. One of the things that we're really interested in is this idea of a prosthetic arm. Think about all the wounded veterans coming back from Iraq and Afghanistan. Amputees. We hear so much about them. No surprise, (INAUDIBLE) less know him but the Pentagon actually called Dean Kamen to see if he might be able to help.

DEAN KAMEN, INVENTOR: I went home that night thinking I can't imagine giving up one of my arms, I can't imagine it. But compared to losing two, I was lying in bed thinking, how do you turn over? What do you do? I just -- so the next day I decided we've got to do this. And in about 15 months, we had Chuck over there wearing an arm.

GUPTA (on camera): Fifteen months.

KAMEN: Fifteen months.

GUPTA: From being an idea in your brain to actually being a reality.

KAMEN: And it weighs under nine pounds and it does everything they said, and if you want, we'll go ask Chuck and go and eat a grape.

UNIDENTIFIED MALE: How you doing?

GUPTA: Nice to meet you.

UNIDENTIFIED MALE: You too.

GUPTA: That's something. I never thought I'd get to shake hands with an arm like that.

KAMEN: Let's do some heavy work. Let's go pick up a gallon of water.

GUPTA: If you think about, there's not even a plausible way to do that with a hook. There you go.

(END VIDEOTAPE)

PHILLIPS: Wow. To see more on how this arm works, tune in to "SANJAY GUPTA MD" right here, CNN, Saturday morning, at 8:30 Eastern Time.

Iran's supreme leader fires back after a U.N. report claims his country may be developing a nuclear warhead.

(COMMERCIAL BREAK)

ANNOUNCER: Live in the CNN NEWSROOM, Kyra Phillips.

PHILLIPS: Well, investors on Wall Street awaiting today's opening bell. Stocks have risen every day this week, but last night's move by the Federal Reserve to raise the interest rate that charges banks for emergency loans may put an end to the winning streak.

Alison Kosik, at the New York Stock Exchange. Hey, Alison.

ALISON KOSIK, CNN CORRESPONDENT: Hey, good morning, Kyra. You know the Fed's action was not a surprise, but the timing was. It came after the market closed yesterday. So investors had had time to digest the news. Initial reaction turned into a big selloff this morning, but now it looks to be pretty measured.

But Chairman Ben Bernanke, in testimony to Congress last week, basically said this was going to happen, and the fact that few banks really used the emergency rate should keep the markets from overreacting.

Analysts say the increase immediate comp rate indicates that the fed is winding down the series of extraordinary program to have put in place to east economic crisis. Keep in mind, though, this rate increase will not directly affect borrowing costs for consumers or most businesses, but it is causing the U.S. dollar to rise and putting the stock markets three-day win streak in jeopardy.

Also, under pressure today, shares of Dell, the computer giant reported disappointing fourth quarter earnings. Sales rose during the holiday season. Right now, shares of Dell are down about a fraction, but those Dell sales were propped up by steep discounts that cut into the company's bottom line.

As for the overall market in the early going, let's take a look the Dow industrials down about 29 points; the NASDAQ off about 8. Stocks are on track to finish higher for a second straight week

All right, Kyra, finally, who got rung in the opening bell. It's members of the Super Bowl champions, the New Orleans Saints led by safety Darren Sharper who led the NFL this year with 9 resections, three of which he returned for a text down. We got some celebs in the house, Kyra.

PHILLIPS: All right. Sounds good. Thanks, Alison.

KOSIK: Thank you.

PHILLIPS: Iran's supreme leader sounds off about accusations that Tehran may be dramatically escalating its new program. Today, Ayatollah Khomeini emphatically denied his government is pursuing nuclear weapons saying it would violate Islamic beliefs. This comes today after an alarming report was released on Iran's nuclear ambitions. Matthew Chance has more.

(BEGIN VIDEOTAPE)

MATTHEW CHANCE, SENIOR INTERNATIONAL CORRESPONDENT: This is the strongest warning yet from the U.N.'s nuclear watchdog agency, the IAEA, about the nature of Iran's current very controversial nuclear program. The agency warning, and it does have concerns that Iran may be carrying at work on a nuclear payload for a missile. It does cite specific evidence to lead it to that conclusion, but it does detail what looked like a pattern of defiance from Iran, saying that the country, for instance, has been resistance to IAEA calls to allow inspectors greater access to his nuclear facilities.

It's cited the fact that Iran is going ahead and enriched uranium to 20 percent against U.N. Security Council resolutions as evidence that it is being defiant in this regard. It also is a nuclear site that disclosed recently. This is a report which first details those nuclear sites. It's also the first report by the new director general of the IAEA, Yukiya Amano taking over from Mohamed al-Barade (ph), and it could be a sign of a much more hard-line tactic against the Islamic Republic by the U.N. nuclear agency in the future.

Matthew Chance, CNN, London.

(END VIDEOTAPE)

PHILLIPS: A strong warning from North Korea says it will never dismantle its new program even in exchange for economic gain, unless the U.S. abandons its quite, "hassle policy". North Korea cut off six-party nuclear negotiations last year after facing criticism for conducting nuclear and missile test.

It's going to top for -- yes, it's going to top the new - or a new dawn in Iraq. Oh, I see. They are changing the name of the operation. Operation new dawn is what it's being called. It's a new name from the Obama administration, replacing operation Iraqi freedom. Senior administration person familiar with the plan says it'll take effect in September, that's after the scheduled withdrawal of U.S. troops.

You think that you have been angry at the Internal Revenue Service. Investigators now believe that a man from Austin, Texas, carried that anger to an extreme. Here's what we know right now. It's believed that 53-year-old Joseph Andrew Stack deliberately flew his single-engine plane into a building with IRS offices. Plus, investigators say it also appears that Stack set his own house on fire before taking off. It looks like Stack was on a suicide mission. Stack and one person in the building were killed, and 13 others were injured.

Just who is this man and why did he have so much anger against the IRS? CNN's David Mattingly talked with some people who actually knew him.

(BEGIN VIDEOTAPE)

DAVID MATTINGLY, CNN NATIONAL CORRESPONDENT: Joe Stacks' long list of bitter complaints online indicate that he has had a problem with the IRS for decades, but his friends, the people who thought they knew him well say they never saw any hint of any kind of anger or violence.

MATTINGLY (voice-over): A tormented rant posted online and his deadly action speaking volumes. Joe Stacks seems the picture of rage and vindictiveness. Nothing at all like the man some remembered as outgoing, friendly, and not the least bit violent.

At anytime did ever seem like he had any kind of temper that he might have been angry at anybody?

RIC FURLEY, JOSEPH STACK'S FRIEND: Not to my knowledge. I mean, not at all. I'd never saw that side of him. He was very laid back, affable, friendly, and warm guy, you know. At the end of rehearsal, we always, you know, hug each other goodbye. Just a real friendly guy. This is completely unexpected.

MATTINGLY: Ric Furley knew Stack for two years, not as an uptight software engineer, but an easygoing musician. The two share the stage playing Rockabilly in a band in Austin. Stack played bass guitar.

What was your reaction when you heard about it?

FURLEY: I kind of freaked out.

MATTINGLY: And you thought you knew him well?

FURLEY: No, I did think I knew him well, but it never occurred to me that he would be capable of something like this.

MATTINGLY: And that seems like the Joe Stack others remembered when he worked on the West Coast. David Page was the mechanic who serviced Stack's private plane. Stack would fly frequently to jobs in Silicon Valley from his home in Linden, California

DAVID PAGE, JOSEPH STACK'S AIRPLANE MECHANIC: He's just a hard- working guy, and self-employed. I think pretty much of his life was work. He enjoyed doing what he did. He liked flying his airplane. He was a very accomplished pilot. It is hard to believe. I cannot imagine he would take out his frustrations in that sort of way.

MATTINGLY (on-camera): And friends say Stack never said anything about to them about any kind of money problems. He seemed to be living a comfortable life, and he seemed to enjoy the life that he had.

David Mattingly, CNN, Austin, Texas.

(END VIDEOTAPE)

PHILLIPS: All right. It's a case of the fake Pinot Noir. People thought they were getting the good stuff, but no, they weren't. Not even close. We will see who's behind the little scheme.

(COMMERCIAL BREAK)

PHILLIPS: A woman who falsely accused three Duke University Lacrosse players of rape four years ago is behind bars in Durham, North Carolina. Remember Crystal Mangum, she faces numerous charges now including attempted murder in arson. Police say she assaulted her boyfriend, threatened to stab him, and then set fire to his clothes in a bathtub. Her three children were home at the time. Police say one of them dialed 911.

A tragedy in Fairview, Tennessee, an eighth grade student died during soccer practice. The school says 14-year-old Jake Gibbs (ph) had just started running sprints when he passed out. His coach's performed CPR but couldn't revive him. Gibbs was pronounced dead just the short time later. The cause of death is under investigation.

At wine merchants in France, maintaining their innocence after being convicted of selling fake Pinot Noir to the California winemaker, Gallo. Prosecutors say 12 local wine traders in South West France duped Gallo when they thinking it was getting the pricey Pinot when, in fact, it was actually getting bottles of Murlo and Sora (ph). The perpetrators were fine as much as $244,000. The scheme was carried out for several years, by the way. The Gallo says only its 2006 vintage was affected.

Problems paying your mortgage on the verge of foreclosure. President Obama set to announce a new plan to help struggling homeowners, and we're going to tell you about it.

(COMMERCIAL BREAK)

PHILLIPS: As President Obama is waking up in Las Vegas this morning, and a lot of people aren't very happy that he is there. He is going to hold a town hall meeting and give a business speech, and he's going to throw a support behind Senate Majority Leader Harry Reid's troubled re-election run, but the real flap is over the President's occasional job suggesting that the Sin City is an example of excessive and unnecessary spending, and people shouldn't go to Vegas and quote, "blow their money."

While in Vegas, the President supposed to talk about new hope for struggling homeowners. CNN's Gerri Willis here with more on that -- Gerri.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Hey, good morning. Yes, Kyra, New help and new hope for struggling homeowners. President Obama today will announce a new assistance program for the states that were hardest hit by the housing crisis. Under the initiative, some $1.5 billion will go to state housing agencies to help homeowners who are unemployed or under water. The program will focus on high unemployment states where averages home prices have dropped 20 percent or more from their peak.

Here are the states that are qualifying, Arizona, California, Nevada, Florida, and Michigan. The money for the program will come from the TARP bank bailout and will be dispersed by treasury. Among the sorts of help, the administration wants states agencies to consider helping folks who have lost their jobs, aiding borrowers who owe more on their home than it's worth, as well as an initiative to help people with second lanes or helix.

This new and issue of the administration's latest attempt to fix its remarkably unsuccessful foreclosure relief effort the home affordable modification program after one year, the $75 billion program has helped only 116,000 homeowners. With this new program, the administration is hoping that state agencies were relying on their knowledge of local markets will be more successful in finding better and more lasting solutions -- Kyra. PHILLIPS: All right, so $1.5 billion. Is this going to be enough to solve such a major problem? Is it ever enough?

WILLIS: It's not a lot of money. No, it's not a lot of money, and frankly the $75 billion that was set aside for the homeowners relief program last year at this time really hasn't been used because homeowners aren't signing up, and they're not getting processed through the program, so it's just been an intractable problem that seems almost impossible to solve.

There are a couple of programs in Connecticut and in Philadelphia that have been successful in getting some modifications done, but these programs were crafted and organized and put in place at the local level, so the administration hopes that they can do this too, encourage solutions at the local level by funding them. Good question, though, whether it will be enough money.

PHILLIPS: Gerri, thanks.

All this week, we're kind of pick up on what Gerri is talking about. We're going to tackle the topic of broken government. This is the idea that nothing gets done because the entire system is basically just not working. To help us with our coverage, we are asking you to send us your examples of broken government. Let's go to my blog, CNN.com/Kyra. Post your thoughts. We will try and make them part of our special coverage next week.

A big mess in the plains. Snow in the mountains. Rob, you have got it all for us.

ROB MARCIANO, AMS METEOROLOGIST: Yes, we do, and on a brighter note, temperatures are beginning to moderate just a little bit at the east of the Mississippi, Kyra, so that's good news. Temps in the 50s from Memphis and Atlanta, still in the 60s across parts of South Florida, so that's still a below average, but generally speaking, beginning to moderate, and we'll have one or two more days of this before the next push arctic air comes in by the beginning of next week, so that is a bit frustrating when you want certainly spring to come around the corner.

All right, so here is our situation for today. This guy's kind of a weak system but getting its act together a little bit more now. Five inches or so of snow is possible in the eastern parts of Nebraska in through central Iowa and northern parts of Missouri. Maybe a little bit of sleet and freezing rain with this to kind of glaze the roads just a little bit but as of now not a whole lot in the way of advisories or warnings out.

Omaha seeing some light snow, as is St. Joseph getting to more rain event as you get towards Kansas City. So that's really going to usher in the cold Arctic air nor will this kind of sleet -- some rains across parts of the Gulf states but that will be moving out the sea.

All right, West Coast getting a storm tonight and tomorrow. That will drive into Arizona and in through parts of the Four Corners and that will bring with it some heavy snow, I think for the mountain states.

Let's talk about the drought. This time last year, even in 2008, we had pretty much expansive drought across much of the country, especially the southeast, and now we only got about seven percent of the lower 48 in drought, really the most extreme drought that I could find is in Hawaii, of all places.

So we have rebounded quite nicely, although there are still water shortages across parts of California, but generally speaking as far as the snowpack is concerned, it's not too bad.

The next couple of weeks above average the temperatures are expected across Pacific Northwest. And even though we're warming across parts of the southeast, Kyra, we're looking for below average temperatures beginning probably Monday and Tuesday of next week.

So don't put the winter coat away just yet, spring eventually will get here.

PHILLIPS: Eventually, key word. Thanks, Rob.

MARCIANO: OK, see you.

PHILLIPS: Traffic in Atlanta is bad enough, then you throw a zebra into the mix. Yes, a zebra. Escaping the circus for a little stroll, just checking out the sights, I guess.

And then on this day in history, breakfast is revolutionized. On this date in 1906, Keith Kellogg founded the Battle Creek Toasted Corn Flakes Company giving eggs and bacon a major run for their money. They're the tasty corn treat our little something, something on this day, 1913. Remember this? Well, 1913 is a long time ago. But remember your prizes that were inserted into the Cracker Jack box.

Well, 97 years and 23 billion toys later, kids and adults alike are still digging deep into it to find their prize.

And now a rumor that spread like wildfire. February, 19th, 1977, Fleetwood Mac released "Rumors," an album that soared to the top of the charts with a string of unforgettable hits, like "Don't Stop" and "Go your own Way."

(COMMERCIAL BREAK)

PHILLIPS: Well, a 12-year-old in handcuffs, tears streaming down her face, police parading her past her schoolmates. She was on her way to jail. And you know what her offense was? Doodling on her desk. That's right. Doodling on her desk.

Alexa Gonzalez apparently now is pretty much a wreck. Her mother says she's been throwing up all the time, all because of getting busted for a doodle. A violation of her New York school's zero tolerance policy, apparently. Now an education official admits, well, it was a bit of an overreaction. Really?

Now for the latest edition of when animals get bored, what do they do? Well, they dance, of course.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: What's in the bunch of Chips O Chips?

UNIDENTIFIED FEMALE: Wait, where's Alex? What happened to him? He was right behind us? Wasn't he right behind us?

UNIDENTIFIED MALE: I don't know where he's at but he's missing one heck of a party.

(END VIDEO CLIP)

PHILLIPS: OK, so that was what Marty, the zebra did in Madagascar. Is this Marty? Well, how about the real thing. And they just go for a stroll when they want to go for a stroll like, out in the parking lot right here at CNN in fact.

And it was to the highway, Tony Harris, do you like that? Tony is singing. He did the perpwalk, Tony says. Probably he would have hitched a ride somewhere warm if he had thumbs but you know, he's a zebra. He was actually a circus zebra. He was rounded up and he was marched back to the big top.

Well, there's a lot happening today in the CNN NEWSROOM including our marching zebras. Our reporters have several stories that they're cooking up for next hour.

Susan Candiotti, let's start with you.

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: Hi, Kyra. We're about an hour away from Tiger Woods' expected apology. Will he also be announcing a return to golf any time soon? We'll show you the setup coming up live.

MARCIANO: I think that zebra may be a distraction method from the Tiger Woods' camp maybe, one day early.

Good morning, I'm Rob Marciano at the CNN Severe Weather Center. We have a storm rolling through the plains, it's a little one compared to the one that's lining up for California and the rest of the West Coast this weekend. We'll talk about that at the top of the hour.

JOSH LEVS, CNN CORRESPONDENT: I feel like all of our stories right now are competing with that animal. And I never shared screen time with an animal, unreal. Well, here's what I've got for you, maybe not more exciting than a zebra but every single state in the country that had all these shovel-ready projects.

So which state got the biggest stimulus road project in the nation? It's huge and it could affect your travel to and from a major airport. I'm Josh Levs. I've got that along with all the zebra updates you could possibly want in the next hour -- Kyra.

PHILLIPS: Thanks so much.

All right, also ahead, if you don't get enough sleep, can it make you fat? We'll have the answers and a little more zebra.

(COMMERCIAL BREAK)

PHILLIPS: Seeking redemption at the Olympic Games. Oh, yes, a gold medal wouldn't be bad either. An American athlete banned for vanity now back to try again. CNN's Mark McKay has the story.

(BEGIN VIDEOTAPE)

MARK MCKAY, CNN CORRESPONDENT: Zach Lund knows the danger of throwing his body head-first down an icy slope, but he wasn't prepared for the peril when it was his reputation sliding away four years ago.

ZACH LUND, U.S. SKELETON TEAM: I knew the whole time I wasn't a cheater. I know that I was an honest athlete. My family knew it, my friends knew it; most of the people around me, you know everyone, knew that I wouldn't do anything, that I wasn't cheating with steroids or anything like that.

MCKAY: The U.S. Skeleton racer had just settled into the Olympic village in Torino when he was banned from the games, sent home for testing positive for finasteride found in Propecia, a common hair growth stimulant prescribed by doctors that at the time anti-doping officials believed masked steroids.

NOELLE PIKUS-PACE, U.S. SKELETON TEAM: He was obviously devastated not to be able to compete, but it was really frustrating because of the misinformation that he had had.

LUND: Everyone is like you fought really hard to compete in the Olympics. I said, "No, I fought really hard to clear my name." The competition was second after that, you know. What's your name worth?

KATIE UELHANDER, U.S. SKELETON TEAM: We all tried to help and support and get it known out there that he was not a cheater, he did not do steroids.

MCKAY: Lund insisted the only performance he was trying to enhance was that of his hairline. Still, he served a one-year ban from the sport after a court appeal failed. Then two years later the world anti-doping agency removed finasteride from the ban list.

Lund I paid my sentence, I did my time, and now that it's legal again and they're like, oh, yes, we made a mistake. They're not held accountable and I don't get a sorry, I don't even get acknowledgement, and that's hard.

MCKAY: Seeking a fresh start, Lund shaved his head, and while he no longer struggles with his outward appearance, he's had plenty of internal battles.

LUND: It's the first time in my life I felt depression. I never understood what that was until after I was kicked out of the Olympics and my dream was taken away from me for a technicality. I've struggled with it even to this day of trying to get a good attitude and deal with it. MCKAY: Lund will be back at the Olympics in Vancouver. He'll be ready again for the danger and the depression, hoping that overcoming one can defeat the other and hoping the dream that seemed dashed in Torino was only a dream deferred.

(END VIDEOTAPE)

PHILLIPS: Mark McKay live in Vancouver this morning; that beautiful background once again. All right, so the competition is halfway over. Where does Zach stand?

MCKAY: He sits in the top ten, Kyra. He's eighth after two runs. Two more runs to try and win a medal, something that Evan Lysacek was able to get for United States last night. You know, Lysacek, the U.S. Men's figure skater, Kyra, had only one regret last night. He said the national anthem went by too fast. He could have stood on that podium for hours.

The United States has been waiting for more than two decades for an Olympic men's figure skating champion. Lysacek went out there and not only won the gold medal for Team USA, he beat the defending champion from Russia. Lysacek landing the double axel on his final jump, bringing the house down at Pacific Coliseum. Lysacek, the gold medal winner in figure skating.

Brian Boitano the last skater to do that for Team USA -- Kyra.

PHILLIPS: All right. Well, we'll keep tracking all the developments. And by the way, Mark, you know I have to get my stab in. Shaun White dissing me today for Oprah? What is that about?

MCKAY: I heard about that. I was in complete shock when I heard that development yesterday. I'm sorry, Kyra.

PHILLIPS: You know, four years ago he gives us his first interview, we had a little fun, he visited us here on the set. Now he's big-time once again and he's got to go fly off to do Oprah and not us. I'm heartbroken. Will you let him know I'm heartbroken?

MCKAY: I'll get it right to him after he's done with the Oprah interview.

PHILLIPS: OK, thanks a lot, Mark. All right. I'll talk to you later.