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Sugar-White Beach vs. Gooey Oil; Up-Close Access to Admiral Thad Allen; BP Siphoning Oil Onto Ship; Detecting Ash From the Air; Ex-Gang Members Laid Off

Aired June 04, 2010 - 12:00   ET

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

TONY HARRIS, CNN ANCHOR: Hello again, everyone. I'm Tony Harris.

Top of the hour in the CNN NEWSROOM, where anything can happen. Here are some of the people behind today's top stories.

Workers at sea trying to stop the oil spewing into the Gulf. We've got exclusive access to their efforts.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I think the American population is wanting this well to be done. They want it now. We all want it to be done now. But we all have to understand that this is a well that killed 11 people.

(END VIDEO CLIP)

HARRIS: Yes.

And Florida's worst fears realized. Oil and tar balls washing up on its beautiful beaches. We are live from Pensacola with the new images.

You're online right now, and we are, too. Ines Ferre is following the top stories trending on the Internet -- Ines.

INES FERRE, CNN CORRESPONDENT: Tony, if you love to look up at the stars, this is from Red Orbit, being e-mailed around. Three planets now visible this week in the night sky.

And, also, the MLB won't reverse the blown call that cost Galarraga a perfect game.

HARRIS: Yes. All right, Ines. Appreciate it. Thank you.

Let's get started with our lead story.

The cap is on, but oil is still leaking. On day 46 of the disaster in the Gulf, BP says some oil is being siphoned from the well to the surface.

Overnight, crews were able to place a cap over the leak. The next step is to close four vents on top of the cap to reduce the amount of oil escaping into the water.

More evidence of the horrible toll the oil leak is taking on wildlife along the Gulf coast, birds coated in thick, brown oil. Take a look at this for just a second here. Rescue teams will try to clean the birds.

And crosses mourning a way of life that could be ruined by the oil. The display in Grand Isle, Louisiana, reflects concerns about the damage to the fishing industry and the activities that the area is known for.

Beachgoers say blobs of gooey oil are starting to show up on the sugar white sands of the Florida panhandle.

Our Rob Marciano is on the hunt for oil. He is on Pensacola Beach.

And Rob, it was great to see, and we can see that there are people behind you who are taking full advantage of those beautiful beaches before who knows what rolls in with the tide.

ROB MARCIANO, CNN CORRESPONDENT: Well, Tony, some of what rolled in early this morning in the form of some small tar balls . Now, here in Pensacola Beach, not horrible, but this is kind of what you're seeing here, these little quarter-size-to-half-dollar-size brown tar balls .

They're washing up. You can find these probably every 10 yards or so here. And people are cleaning those up.

But take a look at this. This is down about two or three miles east of here, several tar balls , large ones, collected, and now melted and coagulating together in this Styrofoam cup. This is just God-awful nasty.

Take a listen to the story the woman tells who found this early this morning.

(BEGIN VIDEO CLIP)

ASHLEIGH PITTMAN, SEEING TAR BALLS ON THE BEACH: The small balls started washing up, and my uncle stepped on one, and it got all over his foot. And we knew immediately what it was. And I started walking up and down the beach looking to see if I could find any more, and I walked up on these three huge balls. And while I was out there in the middle of doing it, a wave crashed up on me, and about 15 smaller balls I saw come in with just that one wave.

MARCIANO: -- Gulf and this beach, goes this town.

NORA CANTERBURY, FLORIDA RESIDENT: Yes, sir. That's my opinion. Yes.

And we're all so sad. You know, this is just our way of life, and it could be gone. It could be gone. Look how beautiful that is.

(END VIDEO CLIP)

MARCIANO: It is beautiful, indeed. I mean, look at this, amazingly white. You don't see white beaches like this in other spots of the world.

This is quartz that has come down stream from the Appalachians millions of years ago, and has coated this stretch of beach and all around the Gulf Islands National Seashore. It is just pristine, pristine stuff. And now these smaller tar balls are beginning to wash up, and people here certainly distraught and heartbroken.

But I can tell you this -- the folks that have had plans to come to the beach, be it on vacation or just a drive down for the day, they are here today. It's been raining on and off the past several days, so maybe they're taking advantage of the beautiful weather, at least for now.

You don't see a whole lot of people except for the brave kids, Tony, who are going into the water. The water is clean as far as the eye can see, but as far as what rolls up on the beach from time to time are these small tar balls. And it's certainly, certainly disturbing here.

HARRIS: God love the kids. They will be kids, won't they? They will just run and play and swim. Just hose them off when they come out of the ocean.

Rob, appreciate it. Thank you, sir.

Our Kyra Phillips has been getting an eye-full of BP's efforts to cap this leak. In fact, she is the only reporter allowed on one of those rigs in the Gulf. She is in New Orleans right now.

Kyra, we plan to talk to you several times this hour. But first, you got amazing access with Admiral Thad Allen, the government's point man on this disaster.

Fill us in, if you would, on what you have been seeing and hearing.

KYRA PHILLIPS, CNN CORRESPONDENT: You know, I'm glad you asked me that question, because I was trying to think, how do I even describe to Tony what it was like to embed with Admiral Thad Allen for two days?

And I started looking over my notes, Tony. OK? I just -- I have pages and pages of notes.

And after about four pages, I realized, this is overwhelming. I've got to stop. I have to stop taking notes.

Listen to this. Starting in the morning, OK, he gets up at 4:30 in the morning. And he said, "OK, we have to first make a coffee stop." He said, "That's how I get my calcium." He's got to get his cafe latte. And I'm thinking, well, you probably need that caffeine, too, sir. But while we're in the coffee shop, he starts telling me about this dinner the night before with Tony Hayward, the head of BP. And all of a sudden, James Carville shows up, you know, one of our political analysts who has been very critical of BP.

And he said the next thing he knew, he was sitting there with Tony Hayward and James Carville, and there was this discussion going on, and he was just kind of sitting back thinking, wow, this is a moment. And then, right after he's telling me that, we turn around and Spike Lee is standing behind us and wants to talk to the admiral about this movie he's making on the oil disaster.

And as we're walking out of the coffee shop, the admiral says, "I feel like Forrest Gump." You know, you remember Forrest Gump was always at the right place at the right time?

So, as that starts to unfold, we get into the car to start getting on with the day, and, Tony, listen to this. Calls start coming in, energy and global warning czar Carol Browner. Right after that, he's on the phone with Governor Riley from Alabama, telling him how he's going to get all the booming requests that he has. Then the next thing I know, Carol Browning is calling him again.

Then it's General Van Antwerp, head of Army Corps of Engineers, because the admiral is trying to facilitate and negotiate a deal to build these barrier islands to protect the marshlands. Of course, that's where the oyster beds are, the shrimp.

So, this is all going down. The next thing I know, he pulls up his computer. He's wireless in the car. And he says, "Oh, this is my iGoogle page."

Tony, this is what's on his iGoogle page. He's got his leadership quote of the day. He's got his Spanish word of the day. He's got, on the right side, every single story that has popped with the keywords "Thad Allen" or "oil disaster." So he's able to read everything that's going on.

Of course, there's the weather, the sports scores on the left side. So he's explaining to me how that's what he looks at every day.

And I said to him -- as we were looking through these articles, I said, "You know, there's been a lot of criticism out there. A lot of criticism towards you, toward BP. We've seen the protests."

I said, "How do you handle all that?" Great quote. "Kyra, I'm very careful who rents space in my head."

The day continues like that. That was just the first 32 minutes, Tony. The first 32 minutes.

By the time we wrapped up two days later, we were standing on one of those rigs out in the Gulf, and for the very first time we had access to talk to those workers, see what was happening first hand, how they were trying to stop that oil gush. And for the very first time, also, we were able to do a broadcast live right there on the rig.

Here's a little bit of that.

HARRIS: That's amazing.

(BEGIN VIDEO CLIP)

ADM. THAD ALLEN, NATIONAL INCIDENT COMMANDER: Behind us we have the Discovery Enterprise, which is -- has a riser pipe out the bottom connected to the containment cap that's trying to be put in place right now over the pipe that was cut off above the lower marine riser package. We are standing on development driller three, which started the first relief well. And just in back of you, Kyra, is development driller two, which is drilling the backup relief well.

So, in the area of about one square mile here, you have the containment process going on, on the Discovery Enterprise, and the two relief wells being drilled on development driller three, which we are on, and development driller two behind you.

(END VIDEO CLIP)

PHILLIPS: And, Tony, coming up in just a few minutes, you're going to hear more from the workers on those rigs. And they're going to tell you first hand, what it feels like to be working this oil disaster.

HARRIS: You know what? And I want you to think about this, because, Kyra, as you're talking about Thad Allen's day -- and I will tell you, I had this thought listening to you last hour, as you previewed what you're going to be sharing with us this hour, you know, if you listen to the echo chamber of the world that we work and make our livings in, there is a lot of complaint that not enough is being done quickly enough. And when you listen to that day that you have just laid out, it is amazing how much work is going on, not just by Admiral Thad Allen, but also the other teams.

So, if you would, later, will you give us an idea of how many people are working on this really hard, really diligently, trying to cap that? Because I think the perception is out there that, you know, that people are taking extended coffee breaks or something, and we know that is not the case. So think about that and we'll talk about it.

PHILLIPS: No, it's not the case. Yes.

HARRIS: OK. Appreciate it, Kyra.

PHILLIPS: You got it. See you in a little bit.

HARRIS: Talk to you a bit later in the hour.

President Obama is en route to the disaster zone. Air Force One scheduled to depart Andrews Air Force Base right now. This is his third trip to the Gulf Coast since the start of the oil disaster. The president is will assess efforts to counter the spill and talk to residents directly who are affected by all of this.

The unemployment report for May is out today. At first blush, you might say, wow. The Labor Department says the jobless rate fell last month to 9.7 percent, down from 9.9 percent. The economy created 431,000 jobs in May.

That is the largest increase in more than a decade, but most of those jobs were temporary Census jobs. The private sector accounted for just 41,000 new positions.

And the Dow is dropping. Right now, let's see, where's the number? Two hundred forty points.

Nasdaq -- anyone with a Nasdaq number for me?

We are going to continue to follow these numbers for you throughout the afternoon now in the CNN NEWSROOM.

You know, we keep showing you underwater pictures of the oil spewing into the Gulf. It is an extraordinary effort to cap the gusher.

(COMMERCIAL BREAK)

HARRIS: A woman flies out of Dallas-Ft. Worth Airport, but she doesn't use an airplane. That makes her departure a "Random Moment."

Have you seen this yet? Watch the takeoff.

This Chevy Impala -- did you see that -- goes airborne at the toll plaza. The car burst into flames when it landed, but the driver wasn't seriously hurt. Police say the woman was drunk, even though she said she had just one drink the night before, a cranberry and vodka.

That doesn't make me drunk.

Well, that didn't fly with police. A Dukes of Hazard-style "Random Moment of the Day."

(COMMERCIAL BREAK)

HARRIS: We are, of course, keeping an eye on the oil disaster in the Gulf of Mexico on day 46. BP says oil is now being siphoned from that ruptured undersea well.

My colleague, Kyra Phillips, back with us now.

And Kyra, again, you were there yesterday on one of those drilling rigs. Talk to us about the experience.

PHILLIPS: Well, as we were flying in, we were about 10 minutes out. And the thing that I -- one of the things that I remember most, the smell of the oil.

It was so strong, Tony. It was like fresh tar. And you could see the streaks of the oil there in the water.

But as soon as we flew in via a Coast Guard helicopter and touched down, I saw the Transocean workers coming to us. It was interesting as I observed the whole dynamic.

I think that there was a little hesitation, maybe a little concern. But once we told them what we wanted to achieve, how we wanted to talk to them, I wanted to hear how hard they were working, what they were doing, what their duties were, what their schedule was like, how their families are feeling. It didn't take long for them to open up and talk to me.

So let me just give you a firsthand look on what it was like to go across this rig, see them working, and hear not only from the admiral, but also those captains aboard the vessels that are working so hard for us right now.

HARRIS: Perfect.

(BEGIN VIDEOTAPE)

ALLEN: The real focus right now is to get that containment cap in place, below the Discover Enterprise, continue drilling the two relief wells. The first one is on the DD3 (ph) that were on right now.

PHILLIPS: And let's make that connection as they're working to get that top hat right now to seal that gusher, how does this well -- how is it going to benefit?

ALLEN: The relief well is being drilled right below us going down. It started at an angle though over, and somewhere between 16,000 and 18,000 feet below the sea floor. It will intersect the well bore.

At that point, it will start pumping heavy mud in to drive the oil and the hydrocarbons down towards the reservoir to stabilize it so they can put a plug in or do what they call a bottom kill. After that's done, there should be no pressure below the blowout preventer. That will allow them to actually removed and cap the well, bring the blowout preventer up and do forensic analysis on it.

PHILLIPS: Explain the connection, the bottom kill here and how that is going to make what's happening on the Discovery Enterprise successful.

ALLEN: The intention is to intercept the well bore well down below the surface near the reservoir, then pump heavy mud in to counteract the pressure of the oil coming up that will allow them to basically plug or kill the well. Once that is done, you can do things like remove the blowout preventer, bring it to the surface, and try and find out what happened.

PHILLIPS: How soon do you think that can happen, Ted, or are you just working as fast as you can?

TED STUKENBORG, TRANSOCEAN: We are working as efficiently and as safely as possible.

PHILLIPS: I know you don't want to make any mistakes.

STUKENBORG: That's correct.

PHILLIPS: How has it been for you? What's it like to get up in the morning and deal with media scrutiny, and have to come out here and do everything you can to make this happen?

CAPT. NICK SCHINDLER, TRANSOCEAN: It can be frustrating at times. The thing is we have to make sure that the crew is focused on the job.

At the end of the day, we want to drill this well as efficiently as possible and we want to do it with no incidents. We want to do it with no injury to anybody.

In fact, we want to have everyone who comes on the rig to go home in better condition than when they came on the street. Part of the problem is that there is a lot of outside scrutiny on what it is that we're doing out here. And I think the American population is wanting this well to be done.

They want it now. We all want it done now. But we all have to understand that this is a well that's killed 11 people. We have to understand that we're sitting over top of one of the world's best drilling rigs.

The well that we're drilling right now killed 11 people and sunk a rig. And so we're not going to speed up and we're going to do this as safe as possible and we're not going to hurt anybody. And that's our goal.

PHILLIPS: What's the deal with the water spray that's taking place next to the Enterprise?

ALLEN: OK. You can see an offshore supply vessel over there with water being sprayed out of its stern. As the product is rising up, because as you know there's oil coming out of the riser pipe until we get the containment cap on right now, they're actually putting water over the surface to reduce the volatile organic compounds that come up off the oil that produce inhalant problems for the workers out there. So, this is actually a safety issue, to put water over the top of the oil so the fumes basically don't come up.

PHILLIPS: Because when were flying in, the smell was so strong. It's like fresh tar smell.

ALLEN: And one way to reduce that is just basically spray water to reduce the vapors.

(END VIDEOTAPE)

PHILLIPS: And, Tony, another thing that I wanted to try to express is that, you know, so many people across the country have been asking, why is this taking so long? Why can't you cap this gusher? Why can't this be done sooner?

There's been a tremendous outcry. So, as soon as I got comfortable with these workers, I said, you know, "How do you respond to those people across the United States, even overseas, that are questioning how hard you're working, how fast you're working?"

And they said, bottom line, "Ma'am, follow me." And that's when they started to take me through the process.

And can I tell you, it is so technical and so tedious, and it was so overwhelming to try and understand every bit of this process and what every worker is assigned to do, and how this all -- it's like a ballet with all these careful moves that are having to happen at one time. It really put in perspective for me how difficult of an operation this is.

HARRIS: It begins to look like and feel like and sound like a foreign language.

Kyra, Captain Schindler mentioned the --

PHILLIPS: That's a perfect analogy.

HARRIS: You know what I mean? It really does. It's so technical, it just -- you know --

PHILLIPS: It's a perfect analogy. Tony, I was writing down certain phrases and re-asking the question a number of times, asking them to explain what was happening a number of times. I mean, from the blowout preventer to the drilling, to the well, everything, I kept asking for more detail. And it's still hard to comprehend everything that I absorbed there.

HARRIS: Kyra, don't we -- as we talk about this story, and we talk about the impatience of the country, and understandably so, to get this capped, don't we have to remember that 11 workers were killed when this rig exploded?

PHILLIPS: That's an excellent point. And it leads me to this magazine that some of the workers gave me when I left, because I had asked a number of them about the 11 workers that were killed.

And there are cousins on those rigs with whom I talked, there are best friends, there are people that worked with these rig workers for numbers of years. And they handed me this magazine.

This is the "Beacon" magazine that Transocean puts out. And it's the special memorial edition to honor, remember, the 11 workers that were killed.

And they just said, "Would you please do something with this? Will you please show Americans the faces, the names?"

So I promised them I would. And if you don't mind, Tony, I'm going to just get a close-up of these pictures, OK?

HARRIS: Yes.

PHILLIPS: And these are the 11 workers that were killed in that explosion.

This is Jason Christopher Anderson. And his wife sent in these pictures of her. And he had two children. And he was a toolpusher.

And then this is Aaron Dale Burkeen. He was a crane operator.

Over here, Donald O'Neal (ph) Clark. He was an assistant driller. And this really caught my attention. His family said, "Don will be remembered by all as a gentle spirit who was slow to speak and slow to anger."

Stephen Ray Curtis, an assistant driller, Tony. And there's a picture of him in his hunting clothes. He was really active in his church. He taught his son to hunt -- or both his sons, rather, to hunt and play baseball.

So, it had all these personal tidbits.

Gordon Louis (ph) Jones, drilling fluid specialist; Roy Wyatt Kemp, derrickhand; Karl Dale Kepplinger, Jr., a floorhand; Keith Blair Manuel, senior drilling fluid specialist.

Just a couple more, Tony.

HARRIS: Sure.

Dewey Allen (ph) Revette, a driller. And here, on the final page, Shane Michael Roshto, floorhand; and also Adam T. Weise, floorhand.

And it wasn't just their pictures, but it was the specific details of what made them special to those other workers there on the rig and, of course, to their families. And it's just a part of the story that we haven't had much access to and we haven't been able to go in depth on until now.

HARRIS: Men with families, wives, children. They're just trying to take care of their families, earn a living, and keep a roof over their heads and food on their table.

Kyra, you're back with us in just a couple of minutes, correct?

PHILLIPS: OK. Yes, I'll see you in a few minutes.

HARRIS: All right. OK. Thanks, Kyra.

A man invests a chunk of his savings in a homemade invention inspired by his baseball-playing son.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: You need to fill in your heart the passion for the invention that you come up with. It doesn't matter how simple it is, as long as it's fixes the problem.

(END VIDEO CLIP)

HARRIS: How a little Georgia red clay in a feed sack took his son's game to a whole new level. It is the latest in our series "The Next Big Thing on American Innovation."

(COMMERCIAL BREAK)

HARRIS: Hey, before we get to the Dow and the news in business today, take a look at this. Boy, I need a monitor so I can see this as well.

This is an oil blob. That's what that is. And everything that's in that blob, right?

And it washed up, boy, a short time ago, is the information I have, Gulf Breeze, Florida. And, of course, that's near Pensacola.

And another indication that the sheen, the blob -- oh, that's nasty -- and the tar balls are starting to wash ashore in Florida, the panhandle, Pensacola. Can you imagine those beautiful beaches? And this is the storm of oil that's coming.

All right. Let's get you to the best financial news Web site on the Web. It's CNNMoney.com, of course.

Our lead story, oil spill. How bad could it get?

BP says it can cap the well by August, but skeptics say it could be more like December. Yikes.

All right. We're better than three hours into the trade -- just about three hours into the trading day.

It's been a down day all day here. We're down 233 points. And the Nasdaq, let me take a look, is also down 47 points. A bad reaction to the jobs report, while we went from 9.9 percent unemployment to 9.7.

And the economy created 430,000-plus jobs last month. A lot of that temporary work, Census workers. So, the market is reacting badly to that, and probably still some residual hangover over what's going on in the eurozone as well.

Let's do this -- let's -- are we going to go to a break right now?

OK. Let's take a quick break. We'll come back with more CNN NEWSROOM in a moment.

(COMMERCIAL BREAK)

TONY HARRIS, CNN ANCHOR: Pictures, information, insight you won't find anywhere else. CNN NEWSROOM with Tony Harris, anything can happen. Many of you are sending us feedback on this oil disaster. Here are comments from CNN I-reporter Kelly Reynolds on Florida, Santa Rosa Beach.

(BEGIN VIDEO CLIP)

VOICE OF KELLY REYNOLDS, IREPORT: We still got plenty of oil booms stacked up. Let's going to enjoy this beach for what might be one of the last times. I heard on the radio on the way down here that the oil is threatening Florida beaches and I know that means Pensacola. Just a shame. Absolutely a shame within a matter of days. Possibly a couple of weeks, if we're lucky. This beach will be closed.

(END VIDEO CLIP)

HARRIS: As you know, Kyra Phillips is in New Orleans, and she is the only reporter to go on one of BP's drilling rigs in the Gulf. And she's had incredible access to the president's point man in this disaster. Of course, we're talking about Admiral Thad Allen, and here is Kyra's piece as she gives us a sense of what his days have been like and the pressure he's under.

(BEGIN VIDEO CLIP)

KYRA PHILLIPS, CNN CORRESPONDENT: Good morning. Good to see you.

PHILLIPS (voice-over): It's still dark on the Gulf Coast, but Admiral Thad Allen has begun another day in the eye of the storm. The 61-year-old commandant of the U.S. coast guard officially had his change of command last month, but he's now on the toughest assignment at his long career. First, a jolt of caffeine. The admiral's security detail knows every coffee shop on the Gulf Coast. And then the first calls of a very long day, the White House, federal agencies, governors, the army corps of engineers, they never stop.

Today's top priority, hammering out an agreement on getting sand barriers built to protect the Louisiana coast and paying for them. It's an issue that's sharply divided state and federal government. The admiral has to be broker, diplomat, decision maker, and the public face of the administration's efforts to tackle the worst environmental disaster in modern history. Then it's on to the incident command post. The nerve center of the massive operation to deal with the spill.

ADM. THAD ALLEN, NATIONAL INCIDENT COMMANDER: Good morning. The briefing this morning is coming from our incident command post.

(END VIDEO CLIP)

HARRIS: And Kyra Phillips joins us now. And, Kyra, I would imagine you were pretty surprised by how much has to be packed into this man's day when you think of all of the people he is responding to in the federal government and working with BP. It could tend to be, I would think, a little overwhelming. PHILLIPS: I think it is overwhelming, but he won't tell you that. He'll just tell you that he's doing his job. And just -- I mean, look at everything that he is taking on. Everybody wants something from him with regard to this response. And it's state leaders, local leaders, it's the White House. He's got to handle this issue with BP. He's got to handle all the criticism. I mean, there's a possible -- there are possible charges that are going to be weighed against BP here. Eric Holder, the attorney general, I mean, there's the criticism, internationally. So, it's a lot to take in. It's a lot to funnel through. And he just -- he takes it as it comes -- Tony.

HARRIS: Boy, amazing. I know him a bit. You, obviously, know him a lot better. It's important to sort of remember here that this is a man under tremendous pressure. He, like everyone else in the country, wants to get this job done and done right and done safely. But it is a tremendous amount of pressure for a guy who, let's keep in mind, has a family and has a life of his own, but it's a terrific job that he has.

PHILLIPS: It is. And he's got to find a balance. He's got to find a balance to deal with the response environmentally, the livelihoods of people, the resources that are needed to attack the worst oil disaster in U.S. history. And then there's the whole possible criminal side.

HARRIS: Absolutely.

PHILLIPS: That is weighing against BP. And he's got to have a relationship with this company, with the head of this company. They have to stop this oil gusher. And at the same time, the attorney general is talking about these possible criminal charges. So, there are so many entities here, and it's a very delicate dance.

HARRIS: All right. Kyra, appreciate it. Terrific stuff. Thank you. We're back in a moment. You're in the CNN NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: And updating the oil disaster, President Obama is on his way back to the Gulf. This will be his third visit since the oil rig exploded 46 days ago. BP has begun siphoning oil from the ruptured undersea well on to a ship. A containment cap is in place, but oil is still escaping into the Gulf.

In other top stories now, a radar to detect the volcanic ash from thousands of feet in the air. Low-cost airline easy jet plans to outfit its planes with this radar. It is developing. Engineers hope the technology will prevent airport shut downs like the ones that happened in Europe when this volcano in Iceland erupted.

And let's check the Dow right now. The big board, and we've been down all day, is the fact here. Bad response to the jobs report even though we've gone from 9.9 percent overall unemployment to 9.7 percent unemployment, and that the economy created 431,000 jobs in May. That comes in below what analysts expected. So, we've got a sell-off. We're back in a moment. You're in the CNN NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: For more than 20 years, Homeboy Industries has turned lives around Los Angeles by giving jobs to former gang members. And today's "What Matters" segment with "Essence" magazine a look at how crushing financial problems forced the largest anti-gang program in the nation to layoff most of its employees.

(BEGIN VIDEOTAPE)

FATHER GREG BOYLE, EXCE. DIR. HOMEBOY INDUSTRIES: Perfect storm of terribleness. I couldn't sleep with the prospect of what was coming down and unavoidable at this point.

There isn't plan B, C or D when it comes to a gang member wanting to redirect his or her life. We are it.

UNIDENTIFIED MALE: After more than two decades of employing, providing hope to ex-gang members and recovering drug addicts, Homeboy Industries, the largest anti-gang program in the nation handed pink slips to 300 employees.

UNIDENTIFIED MALE: They open the doors to me, and I hope they still stay open because we're subjected to helping over 12,000 gang members as year. Mind you, we're a non-profit organization that helps people for free.

BOYLE: We have five businesses. Homeboy silk screen, Homeboy homegrown merchandise, Homeboy cafe. The whole is kind of training programs where enemies work side by side with each other.

UNIDENTIFIED MALE: Do you understand what I'm talking about?

UNIDENTIFIED MALE: Put it on text so we don't have to do the second (INAUDIBLE).

BOYLE: I've been doing this for 23 years. First five years were marked by pretty intense and pervasive demonizing of this population, and then demonizing of me for helping them. If we were to invest in them rather than just try to incarcerate our way out of this problem, that's a sensible way to go. Do I regret hiring anybody here? Not a single person.

JOCELYN ESPARZA, LAID-OFF EMPLOYMENT/EX-GANG MEMBER: I was only 14 years old when I got into this Homeboy Industries. And, you know, I came out taking off my tattoos and Father G hired me on the spot. You know, he gave me a job. It felt good waking up in the morning. I felt like it gave me the responsibility that I never had, you know?

UNIDENTIFIED MALE: When I got out, I finally said to myself, I'm tired of going to prison, I'm tired of hearing my last name. When they say here, we'll love you until you can love yourself.

ESPARZA: People don't get second chances. Father G gave me a third chance. And now, you know, it's going great. You know, I'm not gang related no more. I'm going to use (ph) my time to Father G. I'm not leaving here. He didn't leave me when I needed him.

BOYLE: There's an idea that's taken root in the world that there just might be lives out there that matter less than other lives. And that's in part why a place like this is hard to find because we're not there yet.

ESPARZA: You know, I don't know how my kids are going to turn out to be. We want to keep this place open for the new generation to come.

BOYLE: We're not suspending our services because we've got all of these people who say we're going to continue to offer them and hope that somebody will rescue us as they might a war hall or the Hollywood sign or a puppy.

UNIDENTIFIED MALE: These tears are tears of sadness, but they're also of happiness of the life that I live because of you and because of you, G (ph), and because of my family here. So, I love all of you guys.

(APPLAUSE)

(END VIDEOTAPE)

HARRIS: And to read more stories that matter to all of us, pick up the latest issue of "Essence" magazine on newsstands right now.

Financial questions? The "Help Desk" has answers. We check in with the CNN money team.

(COMMERCIAL BREAK)

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Time now for the "Help Desk" where we get answers to your financial questions. Joining me this hour, Donna Rosato, a senior writer for "Money" magazine and Valerie Morris, a financial journalist. Ladies, thanks so much for being here. I want to get right to the question.

The first one comes from Trudy, and she writes in, I have a credit card charging me 17 percent interest with a balance of 16,000. I have $50,000 in savings, but no job. Should I pay off the credit card in order to pay my other bills better? Valerie, what do you say?

VALERIE MORRIS, FINANCIAL JOURNALIST: Trudy, do not do that. Do not touch your savings at all. Couple of things, first and foremost, don't charge anything else on the credit card. I'm not sure that anyone has said that to you, but you need to stop the bleeding. So, make sure you charge nothing else. Second point, transfer to a low- interest credit card if you can and then dump all the money that you're able to into paying off that card.

You need to know the triggers that got you in trouble in the first place, so that you don't repeat this process. The reality is, even when you pay this card off, the lender may not let you use it again. So, taking your available cash when you have no job in order to pay off a credit card, no. Don't do it. Just pay consistently and get rid of the debt and stop the triggers that caused you to get in trouble in the first place.

ELAM: Some clear advice there. Let's go on to our next question, which is, my home is going to be foreclosed on, and I've been invited to a settlement conference. What essentials do I need to know to successfully negotiate a settlement or restructure the loan? What do you say, Donna?

DONNA ROSATO, SENIOR WRITER, MONEY: Well, many states and cities have in the past few years, passed mediation laws which allow homeowners who are facing foreclosure a chance to meet with their lender. At the settlement conference, it's probably the only chance you'll have to directly negotiate with the lender. You can ask for things like, you know, can you modify the terms of the loan, can you negotiate a short sell. This is a critical meeting, and it might be your only opportunity to talk with a lender.

Now, remember, the lender is not required to agree to anything there. They're only required to meet with you. So, if you're not comfortable negotiating, it might be a good idea to bring a representative with you, which you're allowed to do and get legal help. If you're facing foreclosure, you might not have enough money to hire a lawyer, but you can talk to a HUD housing counselor which you can find at HUD.gov. You can find out if there are any pro bono lawyers available in your area to help you out at that meeting. And good luck.

ELAM: Yes, Donna and Valerie, thanks as always for the solid advice. Of course, the "Help Desk" is all about getting you answers. So, send us an e-mail to cnnhelpdesk@cnn.com. You can also log on to CNN.com/helpdesk to see more of our financial solutions. And don't forget to pick up the latest issue of "Money" magazine. It's on newsstands now.

(COMMERCIAL BREAK)

HARRIS: Turning ideas into a reality. It is what American innovation is all about, and it's what our new series "The Next Big Thing" is all about. A logger inspired by his 10-year-old son invents a gadget to help his swing.

(BEGIN VIDEOTAPE)

HARRIS: Walter Lentz surveys the land for pine trees to log in South Georgia.

UNIDENTIFIED MALE: You're not going to have that many poles.

UNIDENTIFIED MALE: There's not that much on that side there.

HARRIS: The 36-year-old owns a small logging business, but it wasn't the job he dreamed of when he was younger.

WALTER LENTZ, INVENTOR, "THE FIX": I'd rather be playing baseball than working in the woods. I had every aspiration in the world to go to the big leagues. HARRIS: Walter played ball in community college, but like so many young men, he realized he couldn't compete with the heavy hitters.

LENTZ: I was 18 years old and I cried in my daddy's arms for two hours. I didn't want to go back. I had no desire. I hated the game at that point because I wasn't good enough anymore.

HARRIS: Years past, he met his wife, and they had two children. One of them had a passion for baseball.

LENTZ: The release point is not over here now. OK. Here.

He's 10 years old and he -- fundamentally his swing is better than mine when I was in junior college.

HARRIS: Walter had a baseball field and batting cage built in his backyard. He began coaching his son McCray when he got home from work, but early on, he noticed a problem.

MCCRAY LENTZ, INVENTOR'S SON: I was scared. I was really scared because I didn't want to get hit by a ball and it was coming real fast.

HARRIS: McCray was doing something called stepping in the bucket to avoid getting hit.

LENTZ: That natural instinct to step and away from something that's coming to you is pretty natural.

HARRIS: That messed up his swing, and the ball went the wrong way. His frustrated father searched sporting goods stores for a tool to help his son but couldn't find anything. So, he doodled something on paper and put a gadget together himself.

LENTZ: I'm going to go make this thing right quick.

HARRIS: And he did. It consisted of a weightlifting ankle strap and a bag of Red Georgia Clay. Walter strapped the gadget on his son's ankle, and he says over weeks, McCray's swing got better.

MCCRAY LENTZ: I used to step out too far, and I couldn't get anything, couldn't hit anything. And now, I even drive them straight at first base or I either pull them.

HARRIS: Walter thought he had something that might help other kids, so he asked a couple of coaches to check it out, including the head of the University of Georgia's baseball team, his alma mater.

LENTZ: I knew Coach Vernon relatively well, well enough to call him and ask him to see what he would think about this idea. So, I went up and spent some time with Coach Vernon and he gave me the thumbs up.

HARRIS: With a star coach on his side, Walter invested a chunk of his savings. LENTZ: $10,000 is a lot of money, but I would have been a heart broke puppy two years from now if somebody would come up with it and I hadn't spent the $10,000.

HARRIS: He was introduced to a couple last summer who owns a marketing company in Atlanta. The gadget went from a being sack of Red Georgia Clay to a polished product made in China called "The Fix." The couple created the website and a commercial pro bono. Now ,they're part investors.

LENTZ: We made a few minor changes with zippers and Velcro and things like that.

HARRIS: "The Fix" is sold to more than 400 ball clubs and colleges in the south. Walter still feels regret when he talks about failing to make the big leagues, but he got a new lease on life now.

LENTZ: Every kid needs to experience what it's like to see a dad or a grandparent smile at them. And I really believe in my heart of hearts that this simple tool allows kids to do that.

(END VIDEOTAPE)

HARRIS: The way through a few connections Walter's product "The Fix" got a couple of high-level endorsements. The Chicago White Sox, Gordon Beckham, and softball Olympian, Jessica Mendoza. Now, look for our "Next Big Thing" next week, same time, same place, next Friday.

(COMMERCIAL BREAK)

HARRIS: All right. Ali, are you OK over there?

ALI VELSHI, CNN ANCHOR: Great.

HARRIS: Are you mic'd up?

VELSHI: I'm mic'd up.

HARRIS: Is it on?

VELSHI: It is on.

HARRIS: I can hear it. Just enough time to say that CNN NEWSROOM continues right now with Ali Velshi.

VELSHI: Tony, you have yourself a great weekend. You've been putting your back into it all weeks. And you can take it easy, have a good week, and I'll take it from here as Tony said. I'm Ali Velshi. I'm going to be with you for the next two hours today and every weekday taking every important topic we cover a step further.