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Scandal Inches Closer to Pope Benedict XVI; Senator Harry Reid faces tough reelection in Nevada; Palin and Tea Party Activists Roll into Reid's Neighborhood; Neglect of Doctor Fix Legislation Potential Crisis for Medicare; Financial Planner Gives Out Advice
Aired March 27, 2010 - 14:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FREDRICKA WHITFIELD, CNN ANCHOR: Sky high tuitions, health care, and that huge mortgage. It's a triple financial threat that's making millions of Americans feel they are drowning in debt. But help is on the way this hour. A financial expert tells you how to end up ahead.
And at 3:00 Eastern Time, Sarah Palin and Tea Party activists roll into Harry Reid's hometown with a message to voters there -- kick out incumbents who supported health care reform. We'll have live coverage.
And single parents with critically ill children who can't afford their care, an overwhelming burden finding some help.
You're in the CNN NEWSROOM where the news unfolds live this Saturday, the 27th day of March. I'm Fredricka Whitfield.
Our top story right now, thousands of Tea Party activists are rallying in Searchlight, Nevada, hometown of Senate Majority Leader Harry Reid. They are calling on voters there to defeat Reid and other Democrats in November for their role in passing health care reform.
It's a message that is resonating with some Nevada residents as CNN's national political correspondent Jessica Yellin reports.
(BEGIN VIDEOTAPE)
JESSICA YELLIN, CNN NATIONAL POLITICAL CORRESPONDENT: In Nevada politics, the stakes couldn't be higher for senator Harry Reid. His big bet on health care reform turned into a win in Washington, but it's not playing as well with voters back at home.
UNIDENTIFIED MALE: With the health care thing, he's screwing up big time, so he's out.
YELLIN: After four terms in the U.S. Senate, the majority leader could lose his job this November. Polls show a majority of Nevadans don't like him and only a third will vote for him.
YELLIN (on camera): Why do so many dislike you?
SEN. HARRY REID, (D-NV) MAJORITY LEADER: I don't think they dislike me. We have an economic situation in Nevada that is very difficult. YELLIN (voice-over): Nevada is number one in the nation in home foreclosures, number two in unemployment. The casino business has been battered. The number of conventions here has plummeted. Gambling revenue was down more than $1 billion last year.
Folks who work here who don't just blame it on the recession. They are mad the president Obama because twice he has told cash- strapped Americans not to go blowing their money in Vegas. Plenty of folks who work here say Senator Reid should have convinced the president not to say that.
UNIDENTIFIED MALE: Harry Reid, determination that makes a difference.
YELLIN: Reid's message? Thanks to his powerful post at majority leader, he can deliver in a way no freshman senator could.
REID: There are so many different things that wouldn't happen but for the position I have.
YELLIN: But because of that role, he's become a lightning rod for Republican criticism and is taking fire from all sides. Republican challenger Sue Lowden.
SUE LOWDEN, (R) SENATORIAL CANDIDATE: He's lost touch here in Nevada. It's all about the jobs. His solution is to put this country more in debt, to tax the country more.
YELLIN: From a Tea Party contender Scott Ashjian.
SCOTT ASHJIAN, TEA PARTY SENATORIAL CANDIDATE: Reid is not doing the job. He is 70 years old, and he should be playing golf in Florida, probably.
YELLIN: Even the dean of Nevada's political press corps says Reid has a difficult hand to play.
JON RALSTON, NEVADA POLITICAL ANALYST: He says things that are intemperate. He is not charismatic. He can't come back to the state and wow people.
YELLIN: Senator Reid has survived tough campaigns before, but Republicans are betting this year his luck will run out.
(END VIDEOTAPE)
WHITFIELD: And Jessica Yellin joins us live from this Tea Party event in Searchlight, Nevada, right there in the backyard of Senator Harry Reid. Give me an idea, Jessica, is this big crowd a reflection of people right there in Nevada, or are a lot of the Tea Party goers there bused in or did they fly in?
YELLIN: I've met people both from Nevada and a number of out-of- staters who are here to see Sarah Palin. The folks who are from Nevada and who don't like Harry Reid are people who were naturally critics of his to begin with. They all say they were always opposed to him.
And their prime criticism is they think they want to grow government and not leave it in the hands of Nevadans. A few said, Fredricka, that they think his leadership role in Washington has taken him away from the role of fighting for Nevada. That is what Harry Reid is fighting hard here in his campaign by emphasizing how much money and projects he brought home to the state.
WHITFIELD: I understand Harry Reid is nowhere to be found, not really there. So who is listening?
YELLIN: Say again? Where is he, what?
WHITFIELD: He's not there.
YELLIN: He's not there. This is a lot of folks who are here excited to participate in this event, which is in the middle of rural Nevada. This is the hometown Harry Reid grew up in. It's nowhere near any big city.
There are cars miles and miles down the highway backed up to get here. And we're told while this is going on Harry Reid is at a shooting range in Nevada with the president of the NRA because Reid helped bring this shooting range to the state, and obviously he is emphasizing his second amendment credentials there.
WHITFIELD: And later on today Sarah Palin is supposed to speak there. What is the feeling among this Tea Party movement that she will help their cause?
YELLIN: She is the rock star of this crowd. They adore her and they are convinced she will help. As you know earlier, Palin said that Tea Party candidates should get behind Republican and mainstream candidates and not splinter off so they can be a voice to be listened to and organize.
And that is a message local organizers reemphasized. Clearly Sarah Palin's message is getting through to this crowd. They are very excited to see her.
WHITFIELD: Jessica Yellin, thank you very much. About an hour from now Sarah Palin expected to be right there in Searchlight, Nevada, to join that crowd. We'll be covering her speech live, and 3:00 eastern time is the scheduled speech time.
Meantime, while Tea Party activists have grabbed national headlines, another political movement is taking a much more low-key approach. The coffee party USA held its second get together today in Washington, D.C. It's one of hundreds of coffee parties across the nation.
Members say they are not aligned with any political party, corporation, or lobbying network. Their goal -- cooperation in government. The coffee party USA says it will support leaders who work toward positive solutions and work against those who obstruct. Health care reform and streamlining the student loan program, both are major victories for President Obama, and they are the focus of this weekly address to the nation.
(BEGIN VIDEO CLIP)
BARACK OBAMA, (D) PRESIDENT OF THE UNITED STATES OF AMERICA: Education and health care, two of the most important pillars of the strong America grew stronger this week. These achievements don't represent the end of our challenges, nor do they signify the end of the work that faces our country.
But what they do represent is real and major reform. What they show is that we're a nation still capable of doing big things. What they prove is what's possible when we can come together to overcome the politics of the moment, push back on the special interests, and look beyond the next election to do what's right for the next generation.
That's the spirit in which we continue the work of tackling our greatest common tasks -- an economy rebuilt, job creation revitalized, an American dream renewed for all people.
(END VIDEO CLIP)
WHITFIELD: President Obama is expected to sign the second part of the health care reform next week, so the-called fixes bill. It makes slight changes to the broader health care package the president signed into law on Tuesday.
The Senate passed the measure on Thursday. One of its major provisions has to do with student loans. It will shift government funding for student loans away from commercial banks to new education initiatives. Supporters say it will save billions of dollars by ending subsidies to banks that make federal student loans.
We'll have more on how that provision could actually affect you, especially if you've got kids going off to college or you're saving for it. That's straight ahead.
And even the biggest supporters of the new health reform legislation can see it doesn't address a lot of problems within the system. CNN's Tom Foreman takes a look at one potential crisis Congress has yet to deal with.
(BEGIN VIDEOTAPE)
TOM FOREMAN, CNN CORRESPONDENT: Doctors who treat Medicare patients say they are facing a fiscal emergency decades in the making, a 21 percent cut in what the government pays them for that care, 21 percent. By almost all accounts, that could mean fewer doctors taking such patients.
And yet Democratic supporters of reform allowed that time bomb to keep ticking, although keeping them honest, they could have fixed it in the new health care bill. REP. NANCY PELOSI, (D-CA) HOUSE SPEAKER: The bill is passed.
(APPLAUSE)
FOREMAN: But they did make a promise.
PELOSI: It's not in this bill, but we will have it soon.
FOREMAN: Back in 1965 when President Johnson created Medicare for the elderly, doctors were allowed to charge pretty much whatever they thought was fair. But over time, the cost ballooned.
FOREMAN (on camera): So in 1992, they came up with a formula that almost everyone now calls a mess, because while the cost of care has steadily risen, the amount being paid to those doctors has fallen. Time and again Congress has approved quick payments to keep physicians from bailing out of the program all together.
But Dr. Cecil Wilson with the American medical association says that's like paying the interest on a credit card debt. The principal owed to the doctors keeps climbing.
DR. CECIL WILSON, AMERICAN MEDICAL ASSOCIATION: Four years ago the cuts were three percent, four percent. They could have fixed this with $48 billion. Now they are 21 percent, $210 billion to fix it. So each year they postpone it makes it even more difficult.
FOREMAN: The problem is that price tag, $210 billion. If that had been part of the health reform bill, it would have pushed the total tab over $1 trillion, pushed up the deficit, and almost certainly hurt the chances for passage.
The Democrats didn't want any of that. So now they are considering a fix before an election and with the public already nervous over spending.
PELOSI: Thank you all, very much.
FOREMAN: The House passed a measure, but the Senate, well, convincing them is one reason Dr. Wilson was in Washington.
WILSON: Both sides of the aisle, both sides of congress, the administration knows, everybody understands this is a problem that needs to be fixed.
FOREMAN: But they also know it's an expensive problem. How confident are you they'll deal with it now?
WILSON: They have to. If they don't, this program is going to fall apart.
FOREMAN (voice-over): We'll see. For now, the formula says the next big cut is coming at month's end, and the doctors are in the waiting room.
Tom Foreman, CNN, Washington. (END VIDEOTAPE)
WHITFIELD: Here is another big dilemma. So you owe more on your house than it's worth. New relief is on the way. We'll tell you if you qualify for this help.
(COMMERCIAL BREAK)
WHITFIELD: It's a tough time for college students as they face rising tuition costs. But there actually might be some help. Congress passed a bill this week to overhaul student loans.
Here are some of the details. It would expand direct lending from the federal government. The government will no longer pay fees to the banks that serve as the middle man. The White House says the expanded program will save the government $61 billion over ten years. And much of the savings would be funneled right back into Pell grants.
Financial planner Karen Lee is joining us now. Good to see you.
KAREN LEE, FINANCIAL PLANNER: Good to see you.
WHITFIELD: This may offer some great relief for families planning for college. We are talking about Uncle Sam now that's managing this. What are they calling this, one-stop shopping for financial aid or for some assistance on going to college. Is it really going to offer big savings?
LEE: Let's first look at the whole arena of student loans. Already 87 percent of students loans are government backed. It's just of that group 67 percent of those people get through the banks instead of going direct. So, yes, it should bring down the cost a little bit because the government won't have to pay those subsidies to the bank.
But you've got it. The biggest concern is can the government handle the volume? My recommendation to a parent who is starting to look at student loans would be to start early and don't wait until the last minute, because there's probably going to be a logjam.
And of course some of the bankers, people that work at banks processing these loans will probably get down sized.
WHITFIELD: How quickly are we talking?
LEE: Kick in next year, yes.
WHITFIELD: Let's talk about some of the ways people are saving, and 529s -- a lot of us are convinced this is a safe way, a great way. If you are investing into your 529, what do you like about it?
LEE: I actually love the 529 plans. Remember the word "safe" is always hard to use when you talk about investments. So unless you bought one that has a guaranteed interest option, it might not be any safer than the market.
But what we love about the 529 plans, you put in after-tax contributions, but the earnings grow not only tax deferred, but if you take that money out for a qualified expense which will run through quickly, it comes out tax free.
WHITFIELD: You are talking about books, housing?
LEE: Tuition and fees, room and board, and the room and board is going to be capped at what you would pay to be on campus. Actually in 2010 you can buy a computer.
WHITFIELD: Because that's a tool, absolutely.
LEE: It is. So there's a lot of things. There is publication 970 you can look at on the IRS Web site that outlines all of it. But if you don't take it out for qualified, you are going to lose that tax-free, it's going to be taxable and a 10 percent penalty. So be careful.
WHITFIELD: What happens? You started this 529, your child was born, you had no idea your kid would get a full scholarship by the time they graduate high school. What do you do with that 529 money?
LEE: Scholarships are not a problem. All the plans are set up to allow you to take an equal amount out of your 529 plan equal to the scholarship. You do not get the 10 percent penalty, do you have to pay tax on the earnings, but that is not a terrible thing because you are getting free money for college.
WHITFIELD: What about if you move from one state to another, will it matter?
LEE: Right. That is a big misnomer about 529 plans. There are is another kind of plan called prepaid tuition plans. Let's focus on 529 plans. You can open it in any state you want. You can move it up to once a year from state to state.
So really, you're talking more about -- do look at your own state first. You might get state tax benefit from investing in one in your own state. Now you're looking at the money managers that state is using and the performance on these accounts. So feel free to go state to state. You can use it at any accredited college or university in the U.S., even for foreign institutions.
WHITFIELD: Let's talk about the foreclosures, and many people are facing foreclosure when you lose your job. This administration came along and said we want to try and offer some immediate help to people facing foreclosure.
And it means that lenders would have to make some adjustments on the amount of money you're paying for your mortgage if, for instance, you suffer a pay cut or you lose your job all together.
LEE: Right.
WHITFIELD: Is this immediate?
LEE: First of all, a big part -- let's, first say, no one wants these foreclosures to continue. So even people like myself and probably yourself who we are not underwater in our homes and we are paying on time and everything is fine, but the truth is a foreclosure in your neighborhood hurts your own home values.
WHITFIELD: Absolutely.
LEE: So we all want this to go through as quickly as possible.
I think there are some -- as soon as he signs it, yes, it's going to be immediate. What he is asking for the lending institutions to do, for unemployed people, take a look at what they are paying. There are several different parts of it. One, consider refinancing them if they know what the house is worth and get onto a lower interest rate.
Let them out of making payments for three to six months. And quite frankly, I like that. All of those things really hurt the lender who might have made an unreasonable loan in the first place.
WHITFIELD: So they may get saddled with the property if this home owner can't afford to pay.
LEE: So there is some accountability there.
The part of it I'm concerned about is they are looking at actually slashing principal balances for some of these people. I know it will help them, but I think it's a slippery slope. Americans, this is what's going to make people on time or maybe paid off their houses say what about me? I never got free loan payments.
WHITFIELD: Apparently one of the perks here, too, isn't there some measurement of, I guess your mortgage should be no more than 31 percent?
LEE: Right. Good thing about that --
WHITFIELD: -- of your take home.
LEE: They are asking the lenders to relook on capping the person's mortgage at that. But take that as advice to the masses going forward. If you're about to get a house, don't overdo it, because 31 percent is a reasonable amount.
WHITFIELD: Don't bite off more than you can chew.
LEE: Plan for the unexpected.
WHITFIELD: Karen Lee, you're going to be back because we have a whole lot of questions that have come on my blog, Josh Levs' blog, and we'll answer those questions. I say "we collectively." You are.
(LAUGHTER)
LEE: I'll do my best.
WHITFIELD: Karen Lee -- more when we come back.
(COMMERCIAL BREAK)
WHITFIELD: A look again at our top stories.
No luck yet for President Obama in finding a leader for the Transportation Security Administration. His second choice for the job, retired army general Robert Harding, withdrew his name from nomination last night. Harding says his past work as a defense contractor would be a distraction.
And British Airways says its operations are off to a good start on the first day of another cabin crew strike. The company says it expects to fly about 75 percent of passengers during the four-day walkout. Cabin crew members also walked off the job for three days last weekend.
And General Motors is recalling 5,000 heavy-duty vans because of an engine fire risk. They include Chevrolet Express and GMC Savannah passenger and cargo vans made this year. And if you have one, GM says, stop driving it. Park it away from buildings and other vehicles. The company is halting production and sales until it finds a fix.
More top stories in 20 minutes.
(COMMERCIAL BREAK)
WHITFIELD: We are back with financial planner Karen Lee. We have some questions you've been submitting to us online via blog, Facebook, et cetera. We've been talking about student loans, foreclosures, and a little health care reform costs. Karen has strong thoughts on that.
First, this question, this one from Sonny. "My boy is nine and I'm already doing $200 monthly for his college savings, 529 contribution. I do have an extra $300 monthly available for him. What are some good long term investment options I should look into for him?"
LEE: First of all, yes, Sonny, you're saving money. You could increase how much you're putting into the 529 if you think your child is bright and is going to a high-end school or going on to grad school.
You might look at what I call an asset allocated mutual fund that has some bonds and small and medium cap international stocks mixed up. Time horizon is the thing. If it's for later in life, maybe to help buy a house when he gets out of college, you can probably go heavier into stocks.
WHITFIELD: All right, Matt saying, "My mother passed away last June. Do I have to do her taxes?"
LEE: Yes, you do. If she earned any money you have to do a tax return. If she was a regular income tax filer then you do need to file that one more return. If you're coming up against the deadline, file an extension so you have longer. WHITFIELD: That's so odd. If there is a refund --
LEE: It will come back to her estate.
WHITFIELD: OK, very good.
This from Jan saying, "How do I start? 58 years old, divorced, no savings, no benefits, preexisting conditions, thus no health insurance. I work approximately 30 hours per week, about $2,000 per month." Help Jan out.
LEE: This one is tough. The new health care reform will help on the preexisting condition, but not until 2014. So I say first of all, start looking for a job that does offer group benefits. That is probably the only way to get health care, depending on the type of pre-existing condition.
Some companies actually for their part time employees offer health insurance. Maybe a second job. Next thing is --
WHITFIELD: That's probably hard to find.
LEE: It is, but they're out there, some of the big companies.
The other thing she has to zero in on that budget, because $2,000 a month is not very much. Hopefully she is in a roommate situation or would consider bringing in a roommate. And no matter what, I know it sounds difficult, put a couple hundred bucks away for those emergencies. They are going to creep up.
WHITFIELD: Oh, boy. She wants to plan for that rainy day ahead or golden years -- 58, right? Can she -- what do you recommend? How much would she put away of that $2,000 monthly toward that?
LEE: It would be nice if she could do about 20 percent of it. But again, it would be very hard to live on $2,000 a month. So continuing to look for an additional source of income and ways to reduce the budget are really important.
WHITFIELD: Health care reform, a lot of folks are getting used to the idea after seeing historic signing of that part of the legislation this week. You have some strong thoughts about the cost of health care. Are we talking long term or immediately?
LEE: Immediately. And don't get me wrong. There are so many things about this health care reform bill I am very much in favor of. I've seen people virtually destroyed financially by becoming ill and having their insurance company raise their rates or knock them off the system. So I get all that.
There are going to be immediate costs to our pocketbook though and we need to be aware of them. Number one, I expect record premium increases next year for individuals and the employers paying for those plans. Realize that additional taxes are going to be levied on insurance companies and they're retroactive to 2009. That's number one. WHITFIELD: So much for that refund.
LEE: Number two, and this is huge. Fredricka, I don't hear too many people talking about it, but the part of your insurance that your employer pays, the subsidized part, not the part you pay, the part they pay is going to be taxable to you. It will show up on your W-2.
If you earn $60,000 a year and you have them withhold for taxes, but maybe their insurance they pay you don't see is $5,000? Your W-2 is going to say $65,000. You're only held on $60,000. They don't have a choice. That is part of the reform. They don't have a choice. They will pass that taxable income of your insurance premiums they are paying onto you. Everybody needs to be prepared for this and save extra for next year at tax time.
There is one more thing that is an immediate thing. I know people don't worry about this one.
WHITFIELD: Good news, please?
LEE: Depends on what you earn. If you earn over as a single, $200,000, as married $250,000, the Medicare tax, which goes up to the last dollar you earn, is going from 2.9 percent to 3.8 percent. A lot of people say don't worry.
WHITFIELD: You're paying it forward.
LEE: But the reality is if you are a family that earns $300,000, that is an extra $3,000 tax you might not have thought about and might not have saved up. So just know it's coming and coming immediately.
WHITFIELD: Karen Lee, thanks so much. My head is spinning. There are way too many numbers to handle. That is a great breakdown. Appreciate it. Thanks, Karen. Good to see you.
LEE: You, too.
WHITFIELD: Thanks to you for sending in your questions and comments.
Let's talk a little bit more what is translated into anger over health care reform. It is simply boiling over, threatening phone calls, vandalism, even gun shots. We'll take a closer look at what's next.
(COMMERCIAL BREAK)
WHITFIELD: The battle over health care reform have intensified in the days since the reform bill has passed and signed. Federal lawmaker who voted for the measure have received threatening phone calls, some of their offices have been vandalized, and much of that anger was aimed squarely at Michigan Congressman Bart Stupak. CNN's Carol Costello has that.
(BEGIN VIDEOTAPE) CAROL COSTELLO, CNN CORRESPONDENT: Some conservatives made Michigan Congressman Bart Stupak a verb, "Stupaked." Definition, "betrayed." And for some, that sense of betrayal from a man who is pro-life is visceral. These kinds of calls have been coming into Stupak's D.C. office since this weekend.
UNIDENTIFIED MALE: You're a cowardly punk, Stupak. That's what you are. You and your family are scum." "
UNIDENTIFIED FEMALE: Go to hell, you piece of (expletive)."
COSTELLO: Stupak has also received thousands of letters and faxes, some threatening his family. This one shows a noose with the words, "All baby killers come to unseemly ends, either by the hand of man or by the hand of god."
The calls and letters kept come as Stupak and other pro-life democratic lawmakers surrounded the president as he signed an order he says confirms the ban on federal funding for abortions in the new health care law.
REP. MARCY KAPTUR, (D) OHIO: It was very joyous. After the president finished signing it, we all clapped.
COSTELLO: Ohio Congresswoman Marcy Kaptur has also experienced some pushback for her support, but nothing like Stupak.
KAPTUR: There were a lot of individuals who really didn't want this bill at all. And I think that's where some of this is coming from.
REP. BART STUPAK, (D) MICHIGAN: I'm never going to quit speaking on behalf of the unborn.
COSTELLO: The Texas Republican congressman who interrupted Stupak's speech on the House floor with shouts of "baby killer" is now using the incident in a campaign ad. Back in Michigan, the little known Republican running against Stupak suddenly has thousands of friends on his Facebook page.
Dr. Dan Benishek said in the past two days he received $60,000 for donations.
The Tea Party express tour, Sarah Palin onboard, will now include Stupak's district, not because of the abortion issue, but because his vote on health care will "Burden the American people with even more debt and even more government control."
UNIDENTIFIED FEMALE: What a great day for health care reform.
COSTELLO: Sister Simone Campbell, a progressive Catholic, feels for Stupak. She and other Catholic nuns came out in favor of health care reform. She is getting hammered, too, even though she's against abortion.
UNIDENTIFIED FEMALE: One person called me a baby killer. COSTELLO: Sister Simone is saddened by the vitriol. She actually met with Congressman Stupak to offer comfort.
COSTELLO (on camera): Sister Simone met with Congressman Stupak yesterday to tell him he followed his conscience and faith and she is grateful because she knows it's a big price to pay.
Carol Costello, CNN, Washington.
(END VIDEOTAPE)
WHITFIELD: And with all the talk about health care reform and the number of people who don't have insurance, a clear example of the problem today in suburban Atlanta. Take a look. A one-day free clinic for the uninsured is so overwhelmed that organizers had to cut off patient registration. And they sent out an urgent call for more volunteer doctors and nurses.
And scandal inches closer to Pope Benedict XVI. The Vatican is fighting fires trying to extinguish a controversy that threatens to leave the Pope's legacy in ashes.
(COMMERCIAL BREAK)
WHITFIELD: A look at our top stories right now.
The Tea Party express shifts into high gear in Nevada. Three rallies are being held today, all with the same target, Senate Majority Leader Harry Reid. The Tea Party took the fight to Reid's hometown of Searchlight, Nevada. The rolling caravan is set to cross America and ends 20 days from now on that infamous holiday, April 15th, tax day.
Iraq's former prime minister is declaring victory for his coalition. Election results released on Friday show Ayad Allawi block won 91 seats in election, the most in parliament. His rival Nouri al Malaki is alleging voter fraud and wants a recount. Allawi still faces a tough challenge as he tries to put together a coalition government.
And basketball star Gilbert Arenas was sentenced to two years of probation in a felony gun case Friday. The Washington Wizards' guard will also spend 30 days in a halfway house before serving 400 hours of community service. The judge said he believes at his core arenas is a good, decent man.
We'll have another check of the top stories 20 minutes from now.
(COMMERCIAL BREAK)
WHITFIELD: Another day, another embarrassing revelation for the Catholic Church. The latest involves the founder of a religion order in Mexico and the Vatican's decision not to try him before a church hearing despite allegations of abuse.
The religious sect says that decision was made because of the priest's age and it was personally approved by Pope Benedict XVI. The investigation found the Reverend Marcel Marcel sexually abused minors and fathered three children with two women. The church called those actions "reprehensible," but law enforcement authorities were apparently never told about the abuse.
The revelation is adding to the pressure on the Vatican to open all its files. That move would be welcomed by many Catholics.
(BEGIN VIDEO CLIP)
BARBARA BLAINE, SURVIVORS NETWORK OF THOSE ABUSED BY PRIESTS: We believe at this point he should open up the files of any sex crimes he has at the congregation for the doctrine of the faith and turn all those records over to the police, and also tell all the bishops across the globe to do the same thing and to make clear once and for all that all predator priests should be removed from ministry immediately.
(END VIDEO CLIP)
WHITFIELD: The Vatican is also fighting the fallout from the scandal in Germany. A report in "The New York Times" says the Pope, when he was Cardinal Ratzinger, received a memo describing a priest returning to pastoral work within days for receiving treatment for pedophilia. CNN senior Vatican John Allen says the church faces a huge challenge.
(BEGIN VIDEO CLIP)
JOHN ALLEN, CNN SENIOR VATICAN ANALYST: This story for the Pope is sort of like a nightmare from which he can't wake up. The Vatican is trying to put some distance between this case and then Cardinal Ratzinger, now Pope Benedict, saying even though this priest came into the future Pope's diocese and put into another parish where he was accused of abusing other people and was actually criminally convicted in 1986, the Pope wasn't informed, that he wasn't plugged into what was going on, and therefore the suggestion being it's not his fault.
The question is, is that enough? The plain answer to that is no, because in some ways the question of what did the Pope know is a red herring. The point is, it happened on his watch in the archdioceses of Munich at that time.
(END VIDEO CLIP)
WHITFIELD: The church is facing questions about its handling of abuse cases in Ireland, the U.K. and other countries.
Coming up next, it all happened so fast, a terrifying brush with death. We'll find out how it all turned out.
(COMMERCIAL BREAK)
WHITFIELD: Time for a little water cooler action. All these stories have a common denominator. They all seem to have some connection with cars. First up, Idaho. How in the world did something like this happen? Apparently the driver went into diabetic shock and veered off the road and up the guide wire attached to the utility pole. And he was actually left there hanging. The driver was OK, just minor injuries.
And if you missed that scary thing, take a look at this one right here. A fast-thinking Brooklyn Heights, Ohio, police officer pushes a teen out of the path of an out of control car before he is actually knocked over that guard rail. He was assisting with one accident in the icy conditions when the second one happened there.
Take a look again. That was a close call. Officer John Lambert had some broken bones and will need a year or so of rehab. He hopes to return to the force.
Of course, this is my favorite story because I love all things animal. Take a look at this one. A dog that is bad to the bone. He broke through the fence and attacked a Chattanooga, Tennessee, police car, as you see right there.
And he didn't stop until he ripped off the bumper entirely. Talk about taking a bite out of crime. The dog's name, Winston. His owner says he never did anything like this before.
(WEATHER REPORT)
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WHITFIELD: And $10 billion of your tax money may be going to waste. A government project that's been in the works for decades is now just a giant hole in the ground. And some people are blaming Majority Leader Harry Reid. David Mattingly traveled to Nevada to check out the monument to waste known as Yucca Mountain.
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DAVID MATTINGLY, CNN CORRESPONDENT: You want to get to the now defunct nuclear waste repository at Yucca Mountain? Hold on. Ten miles across the high Nevada desert I find all roads to Yucca lined with stones and pot holes.
UNIDENTIFIED MALE: That doesn't sound good. I feel like I've been kidney punched.
UNIDENTIFIED MALE: Side wall.
MATTINGLY: It pays to have a backup in case of a blowout.
UNIDENTIFIED MALE: That's the problem with these rocks. They poked a hole in the side.
MATTINGLY: Too bad nobody thought to have one for Yucca.
MATTINGLY (on camera): The entire time the work was going on with this mountain, did anybody say what they could use it for if the nuclear depository didn't work?
UNIDENTIFIED MALE: No. That stuff has started recently people talked about that.
MATTINGLY: So 25 years, $10 billion, there was no plan b?
UNIDENTIFIED MALE: No.
MATTINGLY (voice-over): It was supposed to be the solution to the scourge of the nuclear age, the one best place to store radioactive waste. It was talked about for 50 years, studied for almost 30, with five miles of tunnels drilled at a cost of more than $10 billion.
But when Nevada Senator Harry Reid convinced the president to kill it, Yucca Mountain became the Mount Rushmore of government tunnel vision.
UNIDENTIFIED MALE: For years there's never been a fallback or plan b, totally focused on just little incremental steps to move Yucca Mountain forward.
MATTINGLY: Now it is a monument to all this red tape?
UNIDENTIFIED MALE: That's right.
UNIDENTIFIED MALE: I could probably use it as land fill and put garbage in.
MATTINGLY: County commissioner Gary Hollis says the closing of Yucca Mountain slams the door of 4,000 construction jobs in Nevada as well as 1,500 permanent jobs once the facility was supposed to be up and running.
MATTINGLY (on camera): Did you have a bigger revenue source in this county?
GARY HOLLIS, CHAIRMAN, NYE COUNTY BOARD OF COMMISSIONERS: Are you kidding me?
(LAUGHTER)
It would take a whole lot of cows to mess up $140 million.
MATTINGLY: Laughable, yes, but a $10 billion hole in the ground is no joke. Senator Reid is now asking the General Accounting Office to explore nonnuclear uses for the massive Yucca tunnel, something that had never looked at in the history of the project.
I went to Nye County, Nevada, hoping to see what was happening after the shutdown. The trip was a disappointment.
MATTINGLY (on camera): This is Yucca Mountain here in front of us?
UNIDENTIFIED MALE: Absolutely. This is the west side of the mountain.
MATTINGLY: This is Yucca Mountain right here in front of us. This big, long ridge. It just keeps going this way. Those tunnels we talked about that were burrowed into the mountain -- they're not in this area, they're a couple of miles over that way.
(voice-over): The Department of Energy no longer allows access. This is as close as I can get.
UNIDENTIFIED MALE: They're volcanic rocks.
MATTINGLY: An astonishing example of government waste, now completely hidden from public view.
David Mattingly, CNN, Nye County, Nevada.
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