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Obama Lays Out Immigration Policy; Alex Slams Ashore; Marine's Mom Fears Deportation

Aired July 01, 2010 - 12:00   ET

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

(COMMERCIAL BREAK)

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:

As President Obama calls for immigration reform, the mother of a U.S. Marine lives in fear that she will be deported.

(BEGIN VIDEO CLIP)

MARIA, UNDOCUMENTED MOTHER OF MARINE: "I feel terrible because he went to fight for his country, a country that doesn't want his family or his people."

(END VIDEO CLIP)

HARRIS: She is accused of being a Russian agent. You will want to hear what she said in a business video about New York.

And you are online right now. We are, too. Ines Ferre is following top stories trending on the Internet -- Ines.

INES FERRE, CNN CORRESPONDENT: Yes, Tony.

Trending on CNN.com, a missing Ohio teen since June was found hiding in an attic. Also, from "Sports Illustrated," an online paper (ph) everywhere, LeBron James, the biggest name in basketball, where will he go next now that he's a free agent, Tony?

HARRIS: Ooh!

Let's get started with our lead story: President Obama delivers his first policy address on immigration reform. You saw it here live last hour. The president is speaking at American University of International Service in Washington.

Our Jill Dougherty is at the White House.

Jill, good to see you. Why this speech? Why now?

JILL DOUGHERTY, CNN CORRESPONDENT: Why now? Well there's a lot of pressure growing because, after all, the states are doing what they say the federal government should be doing, which is passing laws. We've got one right now in Arizona.

So, the president said just a few minutes ago, he said, we're not going to kick the can down the road.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: In sum, the system is broken. And everybody knows it. Unfortunately, reform has been held hostage to political posturing and special interests wrangling, and to the pervasive sentiment in Washington that tackling such a thorny and emotional issue is inherently bad politics.

(END VIDEO CLIP)

DOUGHERTY: And the president actually did mention that Arizona law that they oppose -- he opposes and the administration. And we expect that next perhaps, they could bring suit against that law.

Now, the president -- and he called it by the way, Tony, divisive and ill-conceived.

Now, his plan -- his approach is accountability. That's the buzz word -- accountability from the government, number one, which he says should secure the borders. Number two, businesses that employ illegal immigrants, they should be held accountable. And then finally, the immigrants themselves, he says, should be held accountable. In fact, he said the 11 million people who have broken the law should be held accountable.

He also claims that the southern border is more secure than it's been in 20 years.

So, it's a long speech and touching on a lot of bases, and the question, Tony, is, you know, will it -- will it actually happen?

HARRIS: Yes.

DOUGHERTY: Can he get some Republicans?

HARRIS: Well, how -- maybe you just mentioned it -- how likely is some kind of comprehensive immigration reform legislation this year?

DOUGHERTY: It's going to be tough, according to what our correspondents on the Hill are hearing. And that really is a problem. In an election year with elections coming up, it's very sensitive. And so, that is not very likely, maybe not until even next year.

HARRIS: All right. Jill Dougherty at the White House for us -- Jill, good to see you. Thank you.

Most of you have strong opinions about this immigration issue. A recent CNN/Opinion Research Corporation poll asked: what the main focus of U.S. policy on illegal immigrants should be? Thirty-eight percent say it should focus on allowing them to become legal residents; 60 percent want the policy to focus on deporting illegal immigrants and stopping more from coming here. On the issue of border security, 88 percent of you want more U.S. law enforcement on the border with Mexico; 12 percent oppose it. And when asked about Arizona's strict new law, allowing police to check people for their legal status: 57 percent of you favor the crackdown; 37 percent of you oppose it.

I will push the conversation forward later this hour with a look at when and how immigration reform will happen. I will talk to Republican strategists and columnist Rich Galen and senior political writer for "La Opinion," Pilar Marrero.

The Atlantic season's first hurricane is now a tropical storm. But Alex could still cause all sorts of problems as it moves inland, along the border between Texas and Mexico.

The storm made landfall late yesterday about 100 miles south of Brownsville, Texas. Its biggest threat right now: flooding rains. There was also a threat of tornadoes.

Chad Myers is tracking what is happening for us right now.

Chad, it's yours.

CHAD MYERS, AMS METEOROLOGIST: It is raining everywhere.

HARRIS: Yes.

MYERS: It really is. I'm still very surprised at the breadth of this storm. Even though it is onshore, it has been on shore since about 9:00 last night, raining in Monterrey, Mexico and the areas here. This is where the circulation would be if you could see it, you can't.

But look at the arms and just how -- there's a front king of going across here, too. And all of this tropical moisture continues to pour in from this direction. It's the same problem we're getting here with this onshore flow of the oil, clearly.

Here's the rain, though -- all the way, still a little bit offshore. But it's going to travel to the north. There's going to be a large swath of possibly six- to eight-inch rainfalls that could make flooding over the next couple of days because of how this thing is kind of stalled out.

Here's what we have for you. Here's the storm itself -- look at that eye, it was absolutely amazing last night as we were watching it here. Look at it right there, about 105 miles per hour. We're even thinking of probably some of the gusts could have been 120 in that storm.

The good news is, literally, it hit a very unpopulated area of the world for that matter. There's a place called Punta de Piedra, and it's a small, little community. Now, they're kind of fishing people going through there. But, you know, they knew about it, they were battening down as well.

And here's the convection, Tony, still across parts of south of New Orleans, and that's going to be the case.

By now, even though the winds have slowed for many spots, this is a map of the buoy -- here's the buoy that's the closest to the horizon right there. And the waves are still 7.2 feet. That's well above, that's significant wave height that they could put these boats back in the water. We don't think it's going to settle down for at least 48 to 72 more hours, Tony.

HARRIS: All right, Chad. Appreciate it. Thank you, sir.

MYERS: You bet.

HARRIS: Day 73 of the Gulf oil disaster. Coast Guard crews will fly over the area today to assess the impact of what was Hurricane Alex. The focus is on trying to resume clean-up and containment efforts disrupted by the storm.

Josh Levs is here now with an update -- Josh.

JOSH LEVS, CNN CORRESPONDENT: Yes, Tony. I'm going to follow right up on what Chad was just talking about, what you were saying right there about the latest and how Alex is impacting the entire region because it's impacting the effort to clean up.

First, I want to tell you all the latest pictures we're getting. Take a look at this right here. This is Pensacola Beach. This is just from yesterday. Every day, I'm looking at the latest high- resolution images we're getting. This is clumps of oil littering the beach over there in Pensacola.

And this is one more right here. This is over at Fourchon Beach. This is also on Wednesday. And you can see the damage that's taking place.

All right. Let's go to some of the latest video we have and I'll talk to you about this, because what we are hearing is that Alex could keep impacting this area for days. And one of the first ways it's having an impact right now is on boom. You all know there's a couple of kinds of booms out there.

One is containment boom designed to prevent that oil from getting further. Well, Alex is creating heavy seas -- heavy seas are moving these booms and then to a large extent. And in certain areas, they're no longer able to contain it. That's one problem.

Next problem, new video out here: skimmers. You know, there are hundreds of skimmers that are out there to try to clean up the surface of the water. But they cannot go out because it's dangerous. They had to return to shore in these conditions.

And this also impacting these efforts to burn the oil up on the surface and to break down the oil through dispersants -- those are put on hold as well because of the weather. So were efforts to bring out a third ship. As you all know, we've got two ships going on there right now. You got the Enterprise drill ship and the Q4000 that are at work trying to contain this oil. Officials want to set up a third ship, but efforts to set up the third ship to contain more of that oil has also had to be put on hold for now.

So, we've been getting new information today, which is basically saying that the way things are right now are going to last for at least a couple more days. Skimming of the spill expected to be limited skimmers and booms still going to be having some of the problems that they're having right now.

Let's talk now about the latest collection efforts that we are seeing from underground. Yesterday, they managed to get about 23,000 barrels of oil. Now, that's slightly down from the day before when it was at 25,000. And that has to do with lightning strikes that have been slowing down the process a little bit. Still, the amount of oil that they're actually collecting from under there has stayed pretty much the same, Tony, for a couple of weeks there. It's been in the 25,000-barrel-a-day range.

So, no one wants to hear bad news at all that's bad about slowing down the process, but as I bring it back to you, I'll mention one slightly good thing in all this.

HARRIS: Yes?

LEVS: Which is that officials are saying that this weather is not impacting the relief wells, which are incredibly far down, miles down, you know, 5,000 miles --

HARRIS: Absolutely.

LEVS: -- and then further and further as they drill. The weather is not severe enough to reach way down there. So they say the relief well efforts are still moving forward.

HARRIS: That sounds good. We need that to work.

All right. Josh, appreciate it. Thank you.

LEVS: (INAUDIBLE)

HARRIS: And be sure to watch Anderson Cooper tonight. He talks exclusively to Jimmy Buffet about the singer's concert to benefit the Gulf Coast, "ANDERSON COOPER 360" at 10:00 Eastern Time.

The personal side of the U.S. immigration battle, the mother of U.S. Marine afraid she will be deported. Her son fights for this country while she fights to stay.

First, though, a "Random Moment" in 90 seconds.

(COMMERCIAL BREAK) HARRIS: You know, everybody's got to be good at something, right? Paul Baldwin is good at handcuffs. That qualifies him for our "Random Moment of the Day." The 49-year-old New Hampshire man now has 154 arrests to his credit or discredit. There he is.

Most recently, Monday night, when police say Baldwin stole Budweiser from a convenience store, Baldwin just finished a one-year stint for stealing $1.99 can of beer. The "Guinness Book of World Records" does not list a category for most arrests. So, Baldwin will have to settle for "Random Moment of the Day."

(COMMERCIAL BREAK)

HARRIS: President Obama makes his case for overhauling the nation's immigration policy. He says fences and border patrols alone won't solve the problem and deporting every illegal immigrant in the country is impractical. In a speech just moments ago, the president said the current system is broken and reform has been held hostage by politics.

(BEGIN VIDEO CLIP)

OBAMA: And now under the pressures of partisanship and election- year politics, many of the 11 Republican senators who voted for reform in the past have now backed away from their previous support. Into this breach, states like Arizona have decided to take matters into their own hands. Now, given the levels of frustration across the country, this is understandable. But it is also ill-conceived.

(END VIDEO CLIP)

HARRIS: And the government says almost 11 million people are living here illegally.

CNN's Thelma Gutierrez has the story of one woman fighting to stay in the United States while her son fights to defend the country.

(BEGIN VIDEOTAPE)

THELMA GUTIERREZ, CNN CORRESPONDENT (voice-over): Somewhere in Phoenix, Arizona, a mother lives in fear. Her son is at war and in many ways, she is, too. Her name is Maria. She welcomed us into a small apartment she shares with five children. Maria told us, it was risky to go public with her story. But she wanted her voice to be heard in the national immigration debate.

Maria and her husband came to the United States illegally more than 20 years ago. Her husband supported the family as a baker, but nine months ago, he was detained. And now, he's about to be deported.

With the tough new immigration law about to be enacted in Arizona, Maria is now afraid to walk her kids to school, even go to the grocery store.

(on camera): What are you afraid of? MARIA, UNDOCUMENTED MOTHER OF MARINE: "Yes, I'm afraid. When I go buy groceries and my kids are at school, I don't know if I'll return home."

GUTIERREZ (voice-over): She worries who will care for her young children if she is picked up.

(on camera): A lot of people are very upset that you're here without documents. What would you want to tell them?

MARIA: "I'd tell them not to be racist, that the United States and Arizona have benefitted from the work of Latinos."

GUTIERREZ: Maria says she doesn't feel welcome here and she knows she has many critics. She said she wants them to know she's contributed, too. Her firstborn son, 20-year-old Lance Corporal Chewy Nunez, a U.S. citizen who's serving in the U.S. Marine Corps and fought in Afghanistan.

MARIA: "I feel terrible because he went to fight for his country, a country that doesn't want his family or his people."

GUTIERREZ: Maria says she worries about her son, who has to deal with life-and-death issues while at war while shouldering the emotional and financial burdens of his family back home in Arizona.

MARIA: "Before he left, he told m if I die at war, I want my last request is that you bury me in Arizona, and that's very sad.

GUTIERREZ: Even so, her two younger sons also want to become Marines -- a decision she fully supports, despite the immigration battle she's fighting here.

Thelma Gutierrez, CNN, Phoenix, Arizona.

(END VIDEOTAPE)

HARRIS: So, President Obama lays out the broad vision for reform but as the saying goes, the devil is in the details. Let's do this. Let's keep the conversation on immigration reform going here.

Pilar Marrero is senior political writer for "La Opinion," and she joins us from Los Angeles. And Rich Galen is a columnist for townhall.com. He is with us from Washington.

Pilar, let me start with you -- with this question: you saw the piece a moment ago from our Thelma Gutierrez, what should happen to Maria? Should she be deported?

PILAR MARRERO, SR. POLITICAL WRITER, LA OPINION: Well, it would all depend. It would most likely be that would be the case, because that's what's been happening every day in the Latino community and in the other communities -- not just the Latino community.

That's what people are so -- that's why people are so emotionally involved in this issue, in this community and us in the Latino media because we see how broken it is from the bottom up. We see the families split apart. We see, you know, Harvard students being put on the deportation. We saw last week here in Los Angeles, some guy just selling corn on the street, he was picked up --

HARRIS: Yes.

MARRERO: -- for selling corn and he was deported. I mean, these are not the criminals that Mr. President talks about.

HARRIS: Yes. Well, let me -- let me turn to Rich for a second.

MARRERO: That he wants to prioritize the worst of the worst.

HARRIS: Got you. Let me turn to Rich.

Rich, the president says he wants people like Maria to come out of the shadows, to get right with the law, pay your taxes and learn English. What should happen to someone like Maria?

RICH GALEN, COLUMNIST, TOWNHALL.COM: Well, I think, that's a really good point. I thought overall the speech was OK. I thought he sounded really defensive and frankly, he threw politics in when it was not only not necessarily, but probably harmful, to the very candidates he thinks he's trying to help -- which are Democrats running in either swing or Republican districts.

But to your exact question, I -- you know, we have a statute of limitations on many, many, many criminal activities. And I think in the case of the woman that you just had the piece on --

HARRIS: Maria, yes, yes.

GALEN: -- that somewhere that the statute of limitations is probably somewhere inside of 20 years, that would take a lot of folks out of the equation. You could have -- you could have a carve-out for them, have some kind of mechanism for that. And then you could concentrate on those who have illegally -- illegally -- come into the United States more recently.

HARRIS: Yes.

GALEN: But let me just say this, you know --

HARRIS: Sure, sure, sure.

GALEN: -- it is not, it's not in my mind at least, it's not a racial issue. I would just be as opposed to 7 million Scottish Presbyterians showing up here illegally. So, it's the nature of protecting the borders, not keeping people out who have something to offer, if they want to come in legally.

HARRIS: Pilar, I want to give you an opportunity to respond to that. But maybe we'll get back to it in a second here because I do have a question, that race issue here.

If there were no demand for illegal workers in this country right now, Rich, would that solve our undocumented workers' problem in this country?

GALEN: No, because it's like a law of thermodynamics. I mean, heat flows -- heat flows to cold and poverty flows to wealth. So whether -- whether -- I mean, it doesn't matter whether there were jobs here or not, the fact is, this is by far the wealthier country at the border. So, until we, strategically, over the next however many decades, help Mexico increase its own economy so that you don't have that entropy, then I think it's going to be a problem forever.

HARRIS: Pilar, take on the demand-and-supply question here. If there weren't the demand, would there be the supply?

MARRERO: Well, but that is the thing. There's always going to be a demand, unless the United States applies labor laws the way they're supposed to be applied. The problem is, is usually, only the immigrants are held accountable but not the businesses. Not the big businesses. Not the --

GALEN: Not under the Arizona law.

MARRERO: Excuse me?

GALEN: Under the Arizona law, businesses are specifically held responsible.

MARRERO: Right. But we're talking about Arizona and we're not talking about, I don't know, 40 or 50 years of not really cracking down on businesses that hire people and exploit people, because that's why they hire them so they can pay less to them. And people just come from an impoverished country like you mention --

HARRIS: Yes.

MARRERO: -- and they will continue coming as long as they're hired.

HARRIS: OK. Let me -- let me try this one again, and Rich started us down this path.

How much of this debate, Pilar, do you think is not really about undocumented workers, but the fear that many have in this country -- and let's be frank about it -- that whites have in this country, and some blacks, really, that brown people are crowding them out? On a percentage basis, how much of this debate is about race and ethnicity and what it means to be an American?

MARRERO: It's hard to give you a percentage, Tony. But I think part of it, obviously, it's a racial issue. You know, it used to be with Italians, for example, when they came. It used to be about religion and about how, you know, the Vatican was going to take over the United States.

So, it's always something about those people that are coming that makes other people uncomfortable here. Obviously, we have seen a rise in hate crimes. We have seen a rise in groups such as, you know, the neo-Nazi groups that have actually joined the anti-immigrant debate. So, there's obviously -- not from everybody, I'm not saying everybody that's worried about immigration is racist -- but there's obviously a racial additive here. And I don't think we should --

HARRIS: Rich, what's the racial component of this argument in this country?

GALEN: There's a racial component to almost any political argument just because of the nature of the beast and frankly, because in America, we talk about race probably as freely as any bunch of people on the planet. So, I think that's helpful, actually.

But I go back to what I said, that if we had 11 million, as again, Scottish Presbyterians that had come in illegally, that were living here illegally, and had broken the law to do it, I think people would be just as upset. However, it is -- it is crucial to remember that there will always be a lowest 10 percent of the economy, no matter how good the economy is.

HARRIS: Yes.

GALEN: And the secret is to get aid, to come up with a plan that will allow people to start at the lowest 10 percent -- and in America, as we know, look at you, look at me, we have a black guy, a Jewish guy, Hispanic woman, that in America, you are not judged from whence you came in terms of your economic or racial status, you're judged from what you do once you gotten here legally --

HARRIS: Yes.

GALEN: -- once you've applied your skills and talents.

HARRIS: OK.

GALEN: So, let's let people in legally and let them build themselves up.

HARRIS: Pilar, appreciate it. Rich, good talking to you. Thank you, both.

GALEN: Thanks.

HARRIS: Still to come to the NEWSROOM, a supermodel ordered to testify at a war crimes trial. Find out why the court trying former Liberian President Charles Taylor wants to hear from that lady, Naomi Campbell.

(COMMERCIAL BREAK)

HARRIS: On day 73 of the Gulf oil disaster, the world's biggest skimming ship arrives. The Taiwanese-owned vessel is anchored right now south of New Orleans. It is awaiting approval to join the clean- up. Right now, most skimming boats are in port because of tropical storm Alex.

Other big stories we're following for you. Jobless numbers across America are up again. New claims for benefits jumped by 13,000 last week to 472,000 -- that's higher than expected.

Supermodel Naomi Campbell will be ordered to testify at a war crimes trial against former Liberian President Charles Taylor. Prosecutors say Campbell received a so-called blood diamond from Taylor. Taylor is accused of fueling a civil war in Sierra Leone, diamonds helped fund the war.

More top stories for you in 20 minutes.

His death sounded a new alarm for illegal immigration. We will look at the case of an Arizona rancher.

(COMMERCIAL BREAK)

HARRIS: So, people living along the U.S. border with Mexico are in the trenches as a battle over immigration rages.

Our Casey Wian reports, a death of a rancher sparked fears among Arizona residents who are now fighting for better border security.

(BEGIN VIDEOTAPE)

CASEY WIAN, CNN CORRESPONDENT (voice-over): Howard and Rosemary Hunt lived 40 miles from the Mexican border in southeastern Arizona. In January, they were tied up and robbed by two illegal immigrants, one wielding a machete.

(on camera): Is this where you had your confrontation with him?

ROSEMARY HUNT, ARIZONA RESIDENT: Yes, standing right there.

HOWARD HUNT, ARIZONA RESIDENT: But I had told him when he took her down and I said, you harm her and I'll kill (EXPLETIVE DELETED). I grabbed my hand because I reached back to grab the darn thing and I said, wait a minute that hurts. I said, you know, Rosie, they're going to have to kill us because they can't leave us be, we'll identify them. They never did. Thank God.

R. HUNT: You want me to go in here and I got this far, and he went boom. He said, you, you hit hard.

WIAN (voice-over): The intruders tied up the Hunts in this bedroom and fled in their vehicle. They were caught and sentenced to long prison terms. The Hunts feel fortunate to have escaped with their lives.

The residents of this nearby house also escaped by selling their property and moving to Montana -- where we spoke with Terrie Stoller via Skype.

TERRIE STOLLER, FORMER ARIZONA RESIDENT: We said, oh, my, you know, that -- that could have been us.

WIAN: Then another neighbor, rancher Rob Krantz, was shot and killed by a suspected illegal immigrant. STOLLER: When the rancher was killed, we knew we had to make a decision not to go back. It was no longer safe for us to be walking out on the ranches, hunting quail. We were not well-armed and they would make quick work of us.

WIAN: Even though the government statistics show a decrease in violent crime in cities near the southern border, rural border residents say drug and immigrant smugglers are a bigger threat than ever. Yet, Chet Miller just bought the Stoller property and plans to move his family here.

CHET MILLER, ARIZONA RESIDENT: The violence is going to be here, it's like anywhere else, it's going to be here. And to me, it's a better lifestyle for my family to be out in the country versus being in the city.

WIAN: We asked what these current and former Arizonans want President Obama to say about illegal immigration and border security.

MILLER: I'd like to hear him say we're going to secure our borders first.

STOLLER: The only thing that would make it safe enough for us to go back is if the border were secured.

R. HUNT: If they're coming across the way they should and getting their papers? Fine. But this illegal stuff? No.

H. HUNT: To heck with Afghanistan, to heck with Iraq, to heck with the rest of them, how about us?

(END VIDEOTAPE)

HARRIS: Wow. OK. CNN's Casey Wian joining us live from near the U.S./Mexican border in Arizona.

And, Casey, look, 1,200 National Guard troops have been ordered. I'm curious -- do people who live in the area expect that to have much of an impact?

WIAN: They almost expect it to have no impact, Tony. I mean, if you think about it, there's 20,000 border patrol agents deployed along the border now and illegal immigration and drug smuggling is still a problem in many of these remote areas.

You know, behind me you can see the border fence separating the United States from Mexico. I'm in an area where there's a fairly heavy border patrol presence. Places like this it's difficult to get across. But if you go a few miles east of here or a few miles west, there's no fence. There's very few border patrol agents. There's rough terrain and that makes it more difficult to get across. But alien smugglers and drug smugglers are still trying to do it.

And what these residents say is, despite the overall statistics of lower crime rates in cities along the border, they say that the desperation that's driving these people into the more remote outlying areas where these ranchers live is bringing a more violent breed of immigrant across the border. And so that's why they're so concerned. Sure, the border may be more secure in some places, but where they live, they don't feel it, Tony.

HARRIS: CNN's Casey Wian for us.

Good to see you, Casey. Thank you.

Many people believe the federal government is not doing enough to enforce immigration laws, so state and local officials are taking matters into their own hands. Ines Ferre is looking at the growing push for now immigration laws -- Ines.

INES FERRE, CNN CORRESPONDENT: Yes, Tony.

And over the years, states have really been dealing with how immigrants integrate into their community. And take a look at this. Immigration-related bills, in 2006, you had 570 that were introduced. In 2009, 1,500 bills introduced in that year. So, not all of them are punitive. They range from issues like education, to driving licenses, to finding employers who hire unauthorized workers.

Now this year, of course, Arizona's illegal immigration law got the most attention. Now five states have already -- legislators in five states say that they've drafted similar laws that they're introducing into those states. And you have legislators in another 12 states that are saying that they're considering to introduce similar bills.

Now, it's not just states that have been passing laws. Last month you also had Fremont, Nebraska, that introduced - that actually voted on an ordinance that bans hiring or renting property to illegal immigrants. And that's a trend that started around four years ago when you had Hazelton, Pennsylvania, also Farmer's Branch, Texas, and Valley Park, Missouri, which passed similar ordinances.

HARRIS: So you're going to end up, it looks like, with a patchwork of legislation and laws across the country here.

FERRE: Yes.

HARRIS: All right, Ines, appreciate it. Thank you.

The federal home buyer tax credit gets a last-minute reprieve. But wait, there are conditions. Do you qualify?

(COMMERCIAL BREAK)

HARRIS: Boy, we want to get you to CNNMoney.com. Some big news here. The best financial website on the web here. Pay attention to this. Ford's June sales climbing 15 percent, slightly weaker than expected. Come on, analysts, be positive. Fifteen percent, that's nothing to sneeze at. Cnnmoney.com. Our Money team doing a fantastic job there.

Let's get you to the New York Stock Exchange. Three hours into the trading day. And we're still selling. What is going on with the markets? We are down 93 points now. I think we haven't reached into double - triple digit negative territory yet, but we're close. The Nasdaq is down 23 points. So we'll follow these numbers throughout the day.

I want to get you a quick update on a story that we told you about yesterday. The first-time home buyer tax credit was set, as you know, to expire on June 30th. But Congress passed an extension late last night. Alison Kosik is at the New York Stock Exchange.

Alison, great to see you.

So we have a new deadline, huh?

ALISON KOSIK, CNN CORRESPONDENT: Exactly. The new deadline, Tony, is extended by three months to September 30th. And the hope, of course, is that this is going to give the economy a boost because 200,000 people, they were going to miss yesterday's deadline. Now they can take advantage of it. And they were in danger of missing it because a lot of people were buying foreclosures. They take much longer to close with all the paperwork.

And what this extension is going to not do, though, it won't help people who are looking for a new home. So just a reminder, you have to have been under contract by April 30th to take advantage of this. First-time buyers would get $8,000. Existing homeowners would get $6,500. Now that's only if they've been in their homes for five years. So there is that rule attached to it.

Now, we're already seeing the impact of the expiring tax credit. A new report shows the floor is essentially falling out from under the housing market. Today we got those May pending home sales. That measures the number of contracts signed. They tumbled 30 percent from the month before. One analyst, Tony, calls this report a disaster. And the National Association of Realtors expects June to have similar low levels, too. So, so far, no relief in the housing market. That's really disturbing, Tony.

HARRIS: Boy, look at these numbers for Dow component stocks, we're down 88 points. All kinds of troubling news.

All right, Alison, appreciate it. Good to see you. Thank you.

Still to come, the Lebron James sweepstakes begins. Oh, so you say you're not a sports fan? Well, we will tell you why this is not just a sports story. The pictures are in -- sorry.

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HARRIS: We'll explain this in just a second here. A CNN oil alert on day 73 of the disaster in the Gulf. Anchored off the coast of Louisiana, a Taiwanese-flagged vessel awaits for word from the Coast Guard on whether it can help with the oil cleanup. The "A Whale," that's what it is, the "A Whale" arrived in the Gulf yesterday. It is billed as the world's largest oil skimmer. And to Washington. The U.S. Department of Labor releasing its latest report on unemployment. And 472,000 Americans applied for unemployment insurance for the first time last week. That is up 13,000 from the previous week. The numbers could reflect census jobs that have ended and those out of work due to the BP oil leak in the Gulf.

The NBA has its free agency negotiating period, which actually got started at 12:01 this morning. Lebron James, why am I holding this? I'm not -- Lebron James is a wanted man by everybody. You'd expect the two-time most valuable player to be front-page news in his hometown of Akron, Ohio, right? But has pushed oil leak coverage below the fold in Pensacola. And New York is literally falling all over itself trying to lure "King James" away. That's where we find sports journalist Steven A. Smith.

Steven A., good to see you. Good to talk to you, my friend. It's been a while, Doctor.

STEVEN A. SMITH, SPORTS JOURNALIST: What's going on, Tony. How you doing?

HARRIS: All right. Well, tell me this, tell me this, why is landing - you know because there aren't a lot of people who get a lot of sports from CNN, you know, in these hours. So why is landing Lebron James not just a big sports story, but as you can see from the headlines, it is a big national story?

SMITH: Well, he's an iconic brand he's so huge. I mean he's the - you know, he's one of those guys that can generate millions upon millions of dollars for your city. You got to remember that when Michael Jordan retired back in 1999, when he retired from the Bulls, they had speculated that he was worth approximately $1 billion to the city of Chicago. And that's after winning six championships.

Of course, obviously, Lebron James doesn't compare to that just yet, but it gives you some kind of indication of the magnitude that his impact can ultimately have on the city because he's automatically going to win something wherever he goes. He's been to the Eastern Conference finals three times. Been to the NBA finals one time. You know, hotels, restaurants, sports bars, et cetera, et cetera. The money that he will generate for any city that he goes to will be astronomical. And that's why it has a lot to do - that's why you see him on the front pages all over the country.

HARRIS: So you're saying he is not just this fabulous ball player, a beast of a ball player, but you're saying that he actually has - he can be a catalyst for economic development in the city. So maybe then --

SMITH: There's no -

HARRIS: What was Cleveland like?

SMITH: There's no question about it.

HARRIS: Before Lebron, what was Cleveland like?

SMITH: There's no question - well, Cleveland was - I mean, they weren't on the map, to be quite honest with you. Nobody cared about them as a basketball town, I can assure you of that.

HARRIS: Yes.

SMITH: I mean when you thought about the Cleveland Browns, you thought about Cleveland. You thought about Cleveland, you thought about the Cleveland Browns to some degree as dormant of a franchise as they were, you still thought about them because it was the NFL. But when it came to basketball, you didn't think about Cleveland at all. But he definitely put them on the map.

From what I understand, they even raised their prices on their little meters on the street, for crying out loud, once Lebron James came to town because you knew there was going to be more parking and people were going to be looking to park because they wanted to go see Lebron James. In some how some way you were able to elevate the price of those things as well. So just - that's just a small indication of the kind of direction any city can go in if they have him.

HARRIS: I've got to tell you, I'm really curious about what I think is developing here. In strictly business terms, what is Lebron attempting to do here? Is he going to behave here like a big corporation, say a Microsoft or any other big corporation, in attempting to assemble, to merge, to leverage the best, the most talented team possible? Is that what I see taking place here?

SMITH: Well, I don't -- I don't think it's quite that. Understand that he wants to be in the situation where he's winning championships because he now understands that as an individual talent, he has absolutely nothing to prove. But the question about him now is whether or not he can capture championships because that's the one thing devoid of his resume.

HARRIS: Right.

SMITH: He's got 10 fingers on his hands. Not one single one of them has a ring on it, a championship ring, and he recognizes that and that's the kind of thing that people are starting to entertain. He's not the only superstar marquee free agent out there. There's also an individual by the name of Dwyane Wade.

HARRIS: Yes.

SMITH: And unlike Lebron James, Dwyane Wade has Pat Riley. He has South Beach, which I am here to inform you is a very, very big deal. And not to mention the fact that he's a superstar in his own right and he's playing for a team in a state that has no state taxes. So you take that into consideration. And clearly he has the upside on this particular situation because Lebron James appears to be looking for some place else to go. Dwyane Wade wants to stay in South Beach, he's just looking for others to come and play with him. So he's a drawing card as well.

HARRIS: Got you.

So, Steven A., given the economic impact of Lebron James in your city, given the dynamics that are working here, not just Lebron, but other great players in this free agency pool, where do you think he will end up?

SMITH: Well, I reported that he probably is going to end up in South Beach, because that's what my sources tell me. Now, obviously, if I'm wrong, I'll have egg on my face and I'll have to eat crow. But I've been told that he's heading to South Beach. I've had sources here on the East Coast that have informed me of such things. They say he's going to listen to New York, he's going to listen to Chicago, New Jersey, even the Los Angeles Clippers, even though I don't have the time to explain to you why that's futile. That's the black cat organization of the NBA as far as I'm concerned.

HARRIS: That's good.

SMITH: But then he's also going to look at - he's going to look at Miami. You have to remember, unlike the other teams where the New York Knicks have enough money for two maximum contract players, along with Chicago, Miami has created $44 million in cap space. They work out a signing trade deal. They literally have enough room for three maximum contract players. So you're talking about not just Lebron with D. Wade, but potentially a Chris Bosh, a Amar'e Stoudemire, a Carlos Boozer. No other team can do that.

HARRIS: Yes, hey, Steven A., you know, I know you said some really important things in the last 30 seconds, but all I was doing is watching that man fly. That Lebron James. He is something else.

Good to see you, my friend. Let's stay in touch.

SMITH: Good to see you, Tony. Absolutely. You take care.

HARRIS: All right, we're -- Lebron James is part of our blog question today. The results, and you weighed, in after a break. You're in the CNN NEWSROOM.

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HARRIS: OK. We asked you to weigh in on the Lebron James question. Where do you think Lebron will end up?

Let's see, do we have some responses here anywhere? And this is on my blog page, I believe. OK, here we go.

"Let's hope he doesn't leave Ohio." I am kind of you with you on this, Lyndsi. "Cleveland's economy is based on Lebron James at this point."

Let's see if we have a couple more here. "It's his choice," says Paul. "Extra millions or a ring in Miami. His choice will be truly revealing. The ring will be expensive, but how many millions does he need?" Do we have one more? Let's get one more in here. This is from Butch who writes, "Chicago wants him more than anyone." They've cleared out a lot of space too. "I wish he would land here in Detroit, but the safe bet is New York."

We appreciate it. If you'd like to, just go to our blog page, cnn.com/tony, if you'd like to participate and answer our blog question, where do you think Lebron will end up?

Let's take a break. I'll put this down because I have no idea what to do with it. We're back in a moment.

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HARRIS: Several accused Russian spies are scheduled to appear in federal courts today in Massachusetts, New York and Virginia. Donald Howard Heathfield and Tracey Lee Ann Foley are among those taken into custody Sunday as part of a nationwide sting by the FBI. The Russian foreign ministry has confirmed on its official website they are Russian citizens. They're set to appear at a detention hearing in Boston this hour. The FBI says the arrests of Heathfield and Foley are the result of a multi-year investigation. They both face up to five years in prison.

All the suspects seem to have intriguing story lines. But one that may stand out the most could be that of Anna Chapman. She was a highly visible real estate entrepreneur in New York. Chapman gave an interview at a business conference a few months back.

(BEGIN VIDEO CLIP)

ANNA CHAPMAN, ALLEGED RUSSIAN SPY: It was very, you know, personal how all this started, because I wanted to bring value to all those people that, you know, want to get new place to live. And so I launched this business purely because I wanted to help someone.

(END VIDEO CLIP)

HARRIS: OK. The iPhone 4 faces a class-action lawsuit, and Finland makes broadband a right for its citizens, just like health care and education. Ines Ferre tracking what's hot on the World Wide Web. We're back in a moment.

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HARRIS: So primetime right now for the Internet, right? So we're following what's hot online. Ines Ferre is back.

Are you OK? What are we starting with here, Ines?

FERRE: Yes, we're starting with - well, mashable.com.

HARRIS: Yes.

FERRE: And we've got this that's trending right now. So Apple's facing some lawsuits for its new iPhone from at least two plaintiffs that say, hey, you guys have sold us a defective device.

HARRIS: Right, right, right.

FERRE: Because they're complaining about the reception. You know, the iPhone has the antenna around the side.

HARRIS: That's right. That's right.

FERRE: And then they're selling the little bumpers for it for $29. The rubber bumpers for it. And people are saying those should be free because reception is not good on them.

HARRIS: So we've got a class-action lawsuit.

FERRE: So, yes. And iPhone is not - they're not commenting on it. And the lawsuit's against iPhone and AT&T.

And then the next one that we've got is, this one's been trending on Twitter and this is on Gizmodo and it has to do with Finland. It's the first country to offer -

HARRIS: I love this.

FERRE: Yes, broadband to everyone.

HARRIS: For everyone.

FERRE: They're saying it's a legal right.

HARRIS: Yes, yes, yes.

FERRE: People should have broadband. So they passed that law and Spain is going to be following soon in November.

HARRIS: OK.

FERRE: And then you're so into soccer.

HARRIS: I love the World Cup.

FERRE: Yes.

HARRIS: Your team has a big match against Germany coming up on Saturday.

FERRE: Yes, on Saturday.

HARRIS: Germany, really fast. Lots of rest. Germany, really fast.

FERRE: I know. I know. What do you think? I think it's going to be penalty goals.

HARRIS: Oh, I hope not. Oh, God, I hope not.

FERRE: OK. I know. So, OK, this next -- but the next one is Nigeria, which didn't do well in the World Cup.

HARRIS: Did not get out of group play.

FERRE: Exactly. And so the Nigerian president saying that -

HARRIS: Is this Goodluck Jonathan?

FERRE: Yes, Goodluck Jonathan. He suspended the soccer team for two years. They won't be playing in any international leagues. And it's --

HARRIS: So Goodluck says good-bye?

FERRE: Yes, because they're so - they do not like the performance that they did in that one and also in the cup of Africas.

HARRIS: That's right. That's right.

FERRE: The other thing is, is that the FIFA rules say, though, that government can't get involved with a National Football Federation. They can't interfere.

HARRIS: Wow!

FERRE: So who knows what will happen.

HARRIS: And the French federation's upset. This World Cup -- kind of a big deal.

All right, we got to go, we're so long in the segment. We're back in a moment. You're in the CNN NEWSROOM.

See you, Ines.

FERRE: See you.

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