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Oil Scaring Away Tourist; Celebrating the Fourth of July; Steele Gets Inkling of Support; California Workers to get Minimum Wage; California Workers to Get Minimum Wage; Drama at Hot Dong Eating Contest; Cities Go All-Out to Land LeBron James; From AIG to "King of Pops"
Aired July 04, 2010 - 22:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DON LEMON, CNN ANCHOR: On this Fourth of July, some in the Republican Party want to declare independence from Chairman Michael Steele. One of the only conservatives speaking out in his defense, Ron Paul. He joins us this hour.
California, once one of the most viable economies in the world, now taking drastic measures some worry will spread across the U.S. Could you live on minimum wage?
And the food fight that landed a hot dog eating champ in jail. And it's all caught on tape.
Happy Fourth of July to everyone. I'm Don Lemon. Lots of eyes peering into the night sky this evening catching the rockets' red glare. Some amazing fireworks shows across the country this evening. And our correspondents are standing by across the country as well.
Sandra Endo is at the National Mall in Washington, the site of a huge celebration there. Our Allan Chernoff and John Zarrella are at different spots but both of them along the Gulf Coast tonight where the oil disaster is keeping many tourists and their money away on this very -- on this usually very busy weekend.
We want to start with John Zarrella tonight in gulf shores, Alabama, area.
John, what have you seen on the beaches there today?
JOHN ZARRELLA, CNN CORRESPONDENT: Well, Don, you know, the beach here for the most part today was very, very empty. A fraction of the normal crowd that you would expect here. In fact, the lifeguards were telling us that during a normal Fourth of July, they couldn't ride their golf carts along the beach. That wasn't the case today. There was plenty of open space. But now you can see tonight.
Look, a lot of folks have come in pouring in here for the big firework show that they're putting on here that's supposed to start in just a few minutes. And folks came in this afternoon, late in the afternoon. A lot of the people over here on the beach stayed for the show. But many, many more came this afternoon. And there's a live band. There they go. You see a few. There you go. Take a look out there, Don. They've started some of the fireworks off the pier here because of the weather conditions. They had to move the show from a barge they were going to do the display on over to the pier out in the distance there. So some of the first fireworks of this July 4th for our audience. Don, take a look.
LEMON: Very nice there, John Zarrella. Very nice. Glad to see people having a good time. At least a little bit of fun down there on the gulf coast.
And, you know, on the Fourth of July, it's really an American holiday. It's most American of all the holidays here. And we celebrate it with family and friends. Cookouts and barbecues. Even for the folks here at CNN. And what would the Fourth of July be without those fireworks that we have been seeing.
Well, one place that could really use some cheering up of course is the gulf coast. And CNN's senior correspondent Allan Chernoff is in New Orleans for us. Always a prime place for a party.
I see you are wearing your Mardi Gras beads. What else is going on, Allan?
ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: This, as you know is definitely party central. You know, in New Orleans, any nights an excuse for a party. July 4th, something very special. And behind me in just a few minutes we're going to have the battle of the barges. Two barges on the Mississippi River right behind me, and everybody is waiting for those fireworks to begin. Really should be something spectacular. The 20th annual showing of those fireworks right here on the river between the two barges. We've got the Pugh Family over here. They've got 3-year-olds and 4-year-olds.
I think it's past their bedtime, is it not?
UNIDENTIFIED MALE: It is.
CHERNOFF: But a special occasion for it.
UNIDENTIFIED MALE: Very much so.
CHERNOFF: You're very excited, I'm sure.
UNIDENTIFIED MALE: Definitely.
CHERNOFF: Happy Fourth to you all.
UNIDENTIFIED MALE: Thank you.
CHERNOFF: And Don, by the way, the celebration over here, this fireworks display, it is in part sponsored by Chevron. Competitor of BP. But you can see behind me here, lots of people, thousands of people here in New Orleans. The spirit not dampened at all. At least right here in spite of that oil spill in the gulf.
Don? LEMON: And those are two really cute kids right there. Thank you Allan Chernoff down in New Orleans.
You know, one of the best places to take in the sights and sounds of Fourth of July, well of course is the nation's capital. Washington is a beehive of activity on Independence Day. The Obamas put on a barbecue for military heroes and their families at the White House. Thousands gathered for the annual concert right there on the mall. And of course, an inspiring fireworks display that lights up the nation's most cherished monuments. And one of the best places to catch the show, of course, is the national mall.
And CNN's Sandra Endo has a front row seat. One of the best assignments tonight.
Sandra, are you having quite some fun there. I see you have some partiers right behind you.
SANDRA ENDO, CNN NATIONAL CORRESPONDENT: Oh, yes, Don. The party is still managing to go on right now. Even though the fireworks show is over. A lot of people are clearing out of this area, the National Mall. But so many people have come from far away. Germany, Orlando.
What did you guys think?
Everyone wearing their red, white and blue tonight for the 17- minute show. It was spectacular. You heard oohs and ahs from the crowd. And it was funny. After the roar in the sky, the roar down here, then it was like one more fireworks like a goodnight kiss.
Don, back to you.
LEMON: All right, Sandra. Good times there in the nation's capitol. Thank you very much. Stay safe.
In Afghanistan, July 4th took on more than symbolic meaning for some of our soldiers. They proved you can have a little fun on our national holiday, even in the middle of a war zone.
CNN's Atia Abawi is at the Bagram Air Base in Afghanistan.
ATIA ABAWI, CNN INTERNATIONAL CORRESPONDENT: Don, General David Petraeus officially took command of ISAF forces on the Fourth of July in a ceremony held in Kabul. But it's here at Bagram Airfields where the troops are celebrating independence day with a dunk tank, music, barbecue and this.
(VIDEO CLIP)
So the troops trying to have a little bit of fun and a little piece of America in Afghanistan.
(BEGIN VIDEO CLIP)
CAPT. BRIDGETT SCOTT, U.S. ARMY: It feels different. I mean, we are aware that there's a war going on. But at the same time, we're all here serving the same thing, and, I mean, we deserve to celebrate, too. So -- but it's fun. I'm having a great time.
MASTER SGT. MICHAEL VARNO, U.S. AIR FORCE: We can't really do live fireworks here, so we're not going to see a fireworks show. But I hope we don't see a firework show. But I'm going to miss hanging out with my family watching fireworks and having a good time watching parades and stuff. So my family the most.
(END VIDEO CLIP)
ABAWI: The festivities ended with good food and good company. And although the troops do miss their family and friends on their independence day, they say they are proud to be serving in Afghanistan on the Fourth of July.
Don?
LEMON: Atia, thank you for that.
Vice President Joe Biden spent the Fourth of July in Iraq. He met with Iraqi leaders still in political deadlock nearly four months after national elections. The vice president and his wife also had a holiday lunch with U.S. Troops. During his visit, three mortar rounds hit Baghdad's green zone. No damage or injuries to report. This was Biden's second straight visit to Iraq on the Fourth of July.
It looks like being benched from an eating competition was too much for Takura Kobayashi to chew. The former champ was hauled off in handcuffs at the annual Coney Island hot dog competition. We will tell you why.
Plus, RNC Chairman Michael Steele in the midst of controversy over recent comments he made last year. He told me there's a reason behind every gaffe he makes. Take a listen.
(BEGIN VIDEO CLIP)
MICHAEL STEELE, CHAIRMAN, REPUBLICAN NATIONAL COMMITTEE: So if I do something, there's a reason for it. Even it may look like a mistake, a gaffe, there is a rationale. There's a logic behind it.
(END VIDEO CLIP)
LEMON: So does the same hold true for his Afghanistan comments, or will he pay the price here? Congressman Ron Paul and our political expert Mark Preston weigh in on the debate.
And don't just sit there, everyone. Be a part of our conversation. Be a part our show. Send me a message on Twitter and Facebook, and check out my blog at CNN.com/Don.
(COMMERCIAL BREAK)
LEMON: Of course, it is the Fourth of July. Lots of folks out celebrating. And nowhere needs a celebration most than down in New Orleans. More than down in New Orleans. And you are looking at live pictures now of the fireworks display happening there in New Orleans. You saw our Allan Chernoff there moments ago getting ready for that big fireworks display. Of course, Central Time. This is happening an hour after it happens on the east coast. So good luck to New Orleans and all the folks down there and enjoy the Fourth of July.
Meantime, Republican National Committee Chairman Michael Steele is trying to climb out of the hole that he's dug himself this weekend. He's catching heat from his own party for some comments he made about the war in Afghanistan during a fund-raiser on Thursday.
(BEGIN VIDEO CLIP)
STEELE: Keep in mind, again, for our federal candidates, this is a war of Obama's choosing. This is not -- this is not something the United States had actively prosecuted or wanted to engage in.
(END VIDEO CLIP)
LEMON: Well, today, Republicans like senators John McCain and Jim DeMint join the mounting criticism of Steele, and other conservatives have called on stele to step down like Liz Cheney and "Weekly Standard," editor Bill Crystal. But you won't hear Texas Congressman Ron Paul joining the drum beat. He's coming out in support of the gaffe-plagued chairman.
(BEGIN VIDEOTAPE)
REP. RON PAUL (R), TEXAS: I come out in support of Chairman Steele because I think it was overkill. He made a casual comment. He wasn't setting policy and all of a sudden, people jump on him like we're not allowed to have a discussion. Matter of fact, I did like what he said. So I enjoyed the fact that we're willing to have a discussion about the popularity of this war. And truly it is Obama's war, even though it was started during the last administration.
Obama said this is the good war, and he's expanding the war and the American people aren't with him. The majority of the American people are tired of the war, and they'd like to see it ended. They'd like to see our troops come home.
I mean, this idea that as soon as somebody has a discussion, even if it's not handed a discussion, people are clamoring for him to resign? I don't think that's quite fair.
LEMON: Congressman, you have to let me get in on this, because it seems like -- I understand what you are saying. You want people to talk about the war. But it seems like he wasn't factually correct. Very little of what he said if anything, was correct factually in those comments. So -- and he came back --
PAUL: I disagree.
LEMON: Hang on one second. He came back himself and clarified them. So why are you supporting him for comments that he had to clarify which were factually wrong. PAUL: I didn't hear his clarification, but if he clarified his statement because he wasn't making a policy statement. If he came back and said I'm not just stating policy, that's not exactly my position as you interpret it --
LEMON: But he wasn't telling the truth.
PAUL: Pardon me?
LEMON: He wasn't telling the truth.
PAUL: Well, I think you are not telling the truth right now yourself.
LEMON: He said that this war -- he said that this war was started by or basically saying the war was started by the Obama administration. And no one wanted to go --
PAUL: No, he did not say that.
(CROSSTALK)
LEMON: Let me finish. No one wanted to go into this war, when in fact, when we went into this war, most of the country supported it and it was started again under President Bush. So most of what he said if not all of it was not factually correct.
PAUL: What he is saying, politically, this is Obama's war. Even in the last campaign, matter of fact, I thought Obama was more hawkish on this war than McCain was. Because he was calling for increasing troops in Afghanistan before the Republicans were.
So I think in many ways, at least politically, this is Obama's war and it is a political issue. The Republicans really suffer from the fact that the Iraq war continued for so long and it hurt us at the polls.
So I think that Republicans ought to have a right to at least say that maybe this war isn't going well and not blindly support every single thing that is being done. And then all of a sudden, if an individual, does you know, people accuse you, oh, you're un-American, you're unpatriotic. And, you know, they pile on and then they pressure somebody like Chairman Steele that he has to back off. But he didn't have a policy statement. He was merely making a casual statement. And when he said that for over 1,000 years, if even longer, nobody has been successful in invading Afghanistan. He is telling the truth.
LEMON: OK, yes. Well, hang on, hang on.
PAUL: That is not a lie.
LEMON: You have to let me get in here, because I want to go through more subjects then. So let me jump every so often, OK, congressman. You have publicly questioned Republicans who want Steele to resign over this. In fact, this is what you said, and I have to ask -- you said "I have to ask myself, what is the agenda of the harsh critics demanding this resignation. Why did they support Nancy Pelosi and Barack Obama's war."
What did you mean by that statement?
PAUL: Well, yes, they are the ones who's running foreign policy. Republicans don't have anything to do with foreign policy. They are the ones who demanded to increase the troops. They are the ones who are pursuing this. And it's not going very well. Matter of fact, it's going very poorly. We've been there nine years and the evidence is not very good that we're going to have a military victory.
Matter of fact, the military and the politicians don't even seek a goal of military victory. They are hoping they can get a political victory so that isn't the goal. So what are we doing? I mean, why are we there?
(END VIDEOTAPE)
LEMON: So you have heard from Ron Paul. Up next, CNN's senior political editor Mark Preston weighs in on the Steele situation.
(COMMERCIAL BREAK)
LEMON: All right. A live look now. Gulf Shores, Alabama. You see the fireworks happening there. Our John Zarrella was there live just moments ago. And we're showing you this because the folks there can use all the good news they can and they could use a little celebrating. So we're showing you what's happening in the Gulf. First New Orleans. Now Gulf Shores, Alabama. And more along the Gulf Coast as these fireworks display continue.
OK, so before the break you, heard from Republicans -- from Republicans -- from Texas congressman, I should say, Ron Paul, defending RNC Chairman Michael Steele. But others from their own party are hammering stele for saying that Afghanistan is a war of President Obama's choosing.
CNN's senior political editor Mark Preston weighs in on Congressman Paul's position.
(BEGIN VIDEOTAPE)
MARK PRESTON, CNN POLITICAL EDITOR: He really has this idea and this theory that the U.S. should not be policing beyond our borders. That we should not be overseas. We have seen him say that certainly in the last couple of years, Don, when he was running for president. So I'm not too surprised that Ron Paul came out in support of Michael Steele's original comments regarding Afghanistan.
LEMON: So who is he speaking for, here, though?
PRESTON: You know, Ron Paul has an eclectic group of followers. You know, a pretty fervent group of followers. One that really helped fuel his candidacy back in 2008. Young people, Don. Young people who don't want to go to war. He has a very strong following. And in fact, when you talk to Ron Paul about his followers and about the Afghanistan war, the Iraq war, he'll say the young people don't want to be there. And by and large, he is probably right about that.
LEMON: Yes. The interesting thing, though is that, you know, when he says it's Obama's war. And Michael Steele even came back and corrected himself or said -- clarified I should say, clarified saying that it was his strategy. It was Obama's strategy. But most Republicans, you know, feel that Afghanistan is important war, to support the troops and what have you. Are most conservatives, I should say, not say Republicans, most conservatives, so it's very interesting to hear what he had to say and how Ron Paul characterized this for himself.
Let's talk about Michael Steele now, the subject of this matter. How much trouble is he in because, as you heard Ron Paul say, you know, the Republicans need him right now, especially considering what's going on in November? The party needs him. How much trouble is he in?
PRESTON: Look, he's in trouble because it's embarrassing. He has caused a level of frustration within the Republican Party among conservatives by some of the things that he said over the past 18 months or so of his tenure. Certainly this Afghanistan quip doesn't help at all. But the fact of the matter is, Don, it would be very hard for Republicans to remove him from his position. Certainly four months before --
LEMON: Very hard, but is it impossible, though, Mark? Is it impossible, or is it likely? That's probably a better way of putting it.
PRESTON: Let me say this. Nothing is impossible. I didn't think that Trent Lott would be removed from his top job as Republican several years ago for the comments he made about Strom Thurmond. But, look, right now, Don, it would be very, very hard for him to get knocked out. The question is, will this neutralize him? Will we not hear very much from Michael Steele, Don, in the coming months? Will he just keep his head low? A lot of Republicans hope that he does.
(END VIDEOTAPE)
LEMON: And thanks to Mark Preston.
So remember this guy? He is a convicted Lockerbie bomber released from prison last year because doctors said that he was dying of cancer and only had months to live. Well, guess what? He's still alive and he has a new prognosis.
And police in Ecuador seize a massive amount of cocaine. But it's not the size of the shipment that surprised them. It's how it was to be transported.
(COMMERCIAL BREAK) LEMON: We want to check your top stories right now. The cancer specialist whose expert opinion led to the release of the Lockerbie bomber is changing his prognosis. Now saying the man could live another ten years. If you remember, his release from prison last August caused international outrage. Britain cited humanitarian grounds assuming the bomber had only three months to live, but he is still alive in Libya. The 1988 bombing of Pan-Am flight 103 killed all 270 people on board.
July 4th was General David Petraeus' first day on the job as the new commander of NATO forces in Afghanistan. Petraeus releases General Stanley McChrystal who lost his job after -- I should say he replaces him. He lost his job after a magazine article quoted him and his staff criticizing and mocking members of the Obama administration. Petraeus says he supports the president's plan to begin withdrawing U.S. troops by next July based on conditions on the ground.
The DEA calls it a serious development in the drug smuggling war. Agents found this camouflaged submarine in the jungle along the border of Ecuador and Colombia before its maiden voyage. It's 100 feet long, diesel powered engine and it's even air conditioned. And the DEA says it could be used to smuggle tons of cocaine right here to the United States.
Two runaway horses pulling a wagon bolted out of a July 4th parade in Iowa and injured 24 people. Five are in critical conditions tonight, including two children. The mayor of Bellevue, Iowa, says his town is in shock and disbelief now. The horses ran wild for six blocks trampling people along the parade route. Several of them children. The youngest 2 years old.
Secretary of State Hillary Clinton visited two more countries today on her five-day tour of central Europe. She was in Azerbaijan and Armenia promoting human rights and media freedom, and will wrap up her trip tomorrow in Georgia. Clinton has spent time talking to young people, civic and business leaders, even bloggers and not just heads of state. She encouraged them to speak out for social change.
A large bone found in a family's backyard near Memphis, Tennessee has been identified as a prehistoric fossil. The family was digging a swimming pool and found the jaw bone of an ancient mammal. Paleontologists say it belongs to a close relative of Mastodons, which are the forbearers of elephants. The fossil is shaped like a wishbone and is about two feet long and inches wide. Wow.
The State of California may soon take some pretty drastic measures as part of a budget impasse. Slashing the pay of 200,000 workers to minimum wage. That's just $7.25 an hour. We'll hear from some of those workers coming up.
(COMMERCIAL BREAK)
LEMON: All right. Imagine right now if you found out your pay would be reduced to $7.25 an hour. Would you be able to pay your grocery, your mortgage, and your gas bills, feed your family? Well, 200,000 state workers in California are expecting that painful paycheck. Whatever they were making is supposed to be reduced to the federal minimum wage. This is all happening because state lawmakers cannot agree on a budget. So Governor Arnold Schwarzenegger reduced most workers' pay until legislators pass a budget. And just Friday, an appeals court judge ruled that Schwarzenegger does have the authority to do this.
As you would expect, California's workers, well, they are fed up. Pam Brewer and Lorraine Gilliam both work at the department of motor vehicles.
(BEGIN VIDEO CLIP)
LORAINE GILLIAM, CALIFORNIA DEPART OF MOTOR VEHICLES: At the 18 months-plus of reduced salary of 15 percent, because we were taking three days a month of furlough, and that's about 15 percent of our salaries. And we did this for 18 months-plus that the governor was then supposed to -- you know, we'd be reinstated at full salary. Now he's coming up with this $7.25. And there's a lot of us that's just barely hanging on from the 15 percent. $7.25, they would not be able to continue.
(END VIDEO CLIP)
LEMON: And I think you make a good point here that you're trying to get our viewers to know is that this isn't just come as, oh, you know, we're suddenly making $7.25 an hour. You guys have been dealing, Loraine, with other things as well. You've been dealing with cuts because of what's going with the budget there.
Talk about that for me, Pam. Do you -- did you hear anything about when this is happening, when were you told and then when is this going to kick in?
PAM BREWER, CALIF. DEPT OF MOTOR VEHICLES: Well, effective July the 1st is supposed to be the start of our pay salary being cut. It hasn't been set in stone as of yet, but it looks like it's going to happen. So, again, we just sitting and waiting, and then hoping it doesn't but it's not a guarantee that it will not happen.
LEMON: And you work for the DMV, right? How long have you worked for the DMV and what's going through your mind right now? Is it -- are you OK with it? Is it a panic? Is it anger? Is it just --
BREWER: No, I'm -- I'm angry, it is a panic and I'm a little frustrated, but I'm just waiting to see the outcome.
LEMON: OK. How would you solve this problem, Loraine, if you -- because I know it's a big deal. And I don't know if it's a fair question because you're not a politician, but sometimes wisdom comes from people who are not involved in politics, who are not so inside the circle, as they say.
How would you solve this? Because you are facing a deficit there. There's a budget shortfall, but then people need their jobs. What would you do?
GILLIAM: Well, I can tell you that the way the governor is doing it is not the correct way. California has the union, most of us state employees have the union behind us and they came to the bargaining table with the solution, with us willing to give up things so that we could help the state.
We're -- you know, we have live here so we wanted to make it best for everyone, you know. So -- but he's not willing to do that. You know, he's, like I said, the 15 percent already and now we're already suffering and the state is -- and on top of that, the state is losing money.
They lost money by him not continuing with the furloughs. They lost -- he's losing in court so this is going to be penalties and fines that the state is end up -- going to have to pay us back anyway.
LEMON: Yes.
GILLIAM: Give us our money now.
LEMON: Yes, you --
(CROSSTALK)
LEMON: You're a very learned woman.
GILLIAM: I'm sorry.
LEMON: And I want to ask -- no, don't apologize, there's a little bit of delay but that's OK, we're just talking here.
Listen, Pam, I want to ask you this. John Chang, your state controller, the person in charge of your state payroll, is a Democrat. His name is John Chang. He says that he is going to fight this and plans to not cut your pay. Do you feel like you're a pawn in some political process that's going on, some political game?
BREWER: Yes, I do. And the reason why I feel like that is because -- like she said, the union did agree on a contract and we think it was a fair contract. We were giving up some things in order for us to be able to try to help the state out and he's not willing to work with us, so what do we do?
Our backs up against the wall and once you push us to the wall, we're going to come out fighting and that's what we plan on doing.
LEMON: That's OK.
GILLIAM: That's what we are doing.
LEMON: I have a real quick -- real quick question for you and then both of you can answer. This is from Bobby Snow on Twitter who writes with us, she says, "Don, $7.25 an hour isn't much, but if we all had to work one month out of the year at that wage, it might keep us more humble and in touch with others." What do you say to that? First, Loraine.
GILLIAM: Well, we already did that, you know, and we did it for 18 plus months, not just one month, you know. So now he's saying $7.25 an hour. And the people that's been hanging on from the 15 percent cut is not going to be able to hang up, so you're going to have more people on the unemployment rolls.
I mean it's just a domino effect. And to me it makes no absolutely sense and I can't understand how we have people like that running the state of California.
LEMON: And you're talking about the furlough. And then finally, Pam, I will let you answer and then we have to run.
BREWER: OK. I say we've done our part, you know, as far as being furloughed three days out of a month. We've had to cut back on some of our spending, our utility bills and car notes and mortgages and everything is behind.
So I think we've done more than what our share was and for the person to say $7.25 at least we do have a job. We are -- we're grateful for our jobs but we put in the hard work, so again, we should be getting our regular pay. We suffered for 18 months and we do our money.
LEMON: Yes. And listen.
BREWER: Point blank.
GILLIAM: And enough is enough.
(END VIDEOTAPE)
LEMON: Enough is enough. Thanks to Pam and Lorraine.
You know, fans at the annual Coney Island hot dog competition definitely got more than they bargained for. A side show of sorts, really. Former champion Takura Kobayashi didn't compete because of a contract dispute, but then was arrested for rushing the stage.
Plus, it's a game. It's game on for mayors, governors, even big- name entertainers trying to get LeBron James to come to their city. We'll look at who is in the running for the NBA star. It's a whole lot of folks.
(COMMERCIAL BREAK)
LEMON: Now a look at the stories you'll be hearing a lot about in the week ahead from the White House to politics to Wall Street. We start tonight at the White House.
DAN LOTHIAN, CNN CORRESPONDENT: I'm Dan Lothian at the White House.
Back from celebrating part of his Fourth of July weekend at Camp David and after a week of focusing on immigration reform, President Obama turns his attention this week to the Middle East peace process. On Tuesday, he sits down with Israeli Prime Minister Benjamin Netanyahu. White House aides say the two leaders will discuss how to move proximity talks to direct talks. They'll also discuss how this new policy on commercial traffic from Israel into Gaza is working.
And later in the week, President Obama will head out to Kansas City, Missouri, and Las Vegas, Nevada, where he'll talk about the economy and attend a fundraiser for Senate majority leader Harry Reid.
PAUL STEINHAUSER, CNN DEPUTY POLITICAL EDITOR: I'm Paul Steinhauser in Washington.
It's a holiday week and Congress is out of town but there's no vacation from politics. With four months to go until the midterm elections, the campaign trail will be heating up this week. Lawmakers up for re-election will be back in their home states and districts reaching out to voters.
Back here in the nation's capital, keep an eye on the justice department. It could file a lawsuit this week challenging Arizona's controversial new immigration law.
POPPY HARLOW, CNNMONEY.COM: I'm Poppy Harlow in New York.
This week, Wall Street will continue to wait for Congress to act on financial reform. President Obama had asked for it to be on his desk by the Fourth of July, but Congress missed that deadline. Congress is out next week, so lawmakers will begin debate on that measure again the week of July 12th.
The stock market is closed Monday for the Fourth of July holiday. But when it reopens Tuesday, we're going to get a key manufacturing report followed by retail sales on Thursday, as well as that weekly unemployment check. That's also on Thursday. We'll track it all for you on CNNMoney.
LEMON: All right. Thank you, guys
A surprising turn of events at the annual Coney Island hot dog competition. A former champ, Takeru Kobayashi, gets arrested. We'll have a live report for you.
(COMMERCIAL BREAK)
LEMON: Drama at the country's premier eating contest? One eater excelled, while another was arrested. You are seeing the winner right there. Joey Chestnut won Nathan's Hot Dog Eating Contest today for a fourth time. He downed 54 hot dogs and buns in just 10 minutes. It's worse than he did last year and maybe that's because his prime rival, Takeru Kobayashi, was sidelined because of a contract dispute. Kobayashi did show up and ended up behind bars.
CNN's national correspondent Susan Candiotti joins us now with more of this.
I guess we can call it a crazy consumption story. Is it a full moon? What the heck.
SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: I don't know. Well, it sure is the Fourth of July and there sure were fireworks in more ways than one today. I think the arrest got almost as much publicity as Joey Chestnut winning the championship.
LEMON: Yes.
CANDIOTTI: Probably more in so many ways. I mean, who could have predicted such a thing. But sure enough, this was all about a contract dispute. It turns out that Kobayashi said, I don't think the contract that this company gave me was fair. It's run by a world league that controls all of these eating contests and they wanted to be the ones to tell me what contest I could compete in. And it's just not fair.
LEMON: And they said, you can only do what we tell you because that's in the contract. He wanted to do other things.
So this -- what happened today was a bit of rebellion, I would imagine. Did you speak to someone about it?
CANDIOTTI: I did, I did. And we ought to take a look at the pictures of what happened, because right after the contest ended, I spoke with a spokesperson and she said that what happened was that people were in the crowd chanting Kobayashi because they recognized him. He said he got caught up in the moment. He got excited.
LEMON: He rushed the stage.
CANDIOTTI: He rushed the stage. Just to stand on the end, he said, to acknowledge the crowd. That's what he said was going on. And when it happened, that's when all heck broke loose. Security got him, NYPD. And they put the cuffs on him and led him away.
LEMON: Oh, boy.
CANDIOTTI: Now, of course, you would wonder, what about Joey Chestnut? These guys -- they are on record -- they don't like each other. Kobayashi says it's like cat and dog. We don't like each other. But Joey Chestnut was asked by ESPN what he thought about the arrest. Here's what he said.
(BEGIN VIDEO CLIP)
UNIDENTIFIED REPORTER: What do you make of him being hauled off in handcuffs a little bit ago?
JOEY CHESTNUT, WINNER, HOT DOG EATING CONTEST: It's kind of sad. I have a lot of respect for him. He's a great eater. Hopefully, he figures out what's going on in his head. And, hopefully, next year it makes it a good contest.
(END VIDEO CLIP)
CANDIOTTI: So what happens now? Well, it looks like he's going to be in jail. Kobayashi is going to be in jail tonight until he can post bond. He is charged with a violation and two misdemeanors, including resisting arrest. And -- you know, so what happens from here is he'll probably be able to make bond, but I think he's going to be spending -- if he could be spending the night in jail.
LEMON: You know what happens from here? He becomes more famous than if he had participated in that eating contest, and he'll go on and it will be -- because even, admittedly, from the contestants we spoke to here on CNN this weekend, it's almost like world wrestling, you know. You want to be a little bit out there, a little bit crazy. I think this is going to be better for his career.
CANDIOTTI: It could very well be in the end. He's a former six- time champion.
LEMON: Thank you, Susan Candiotti.
We want to give you an update on the two competitors who spoke with us last night -- spoke with CNN just last night. Pete "Pretty Boy" Davekos. He came in 12th, downing 24 hot dogs and buns. Sonya Thomas, the "Black Widow", she came in 4th. She did very well. The 100-pound wonder ate 36 hot dogs and buns, matching her own record. Congratulations to both of them. But, ouch, can you imagine?
All right. So, New York, Cleveland, Chicago, just a few of the cities with their eye on LeBron James. The NBA star is a free agent and up for grabs now. And there's no shortage of players on and off the court willing to team up with LeBron.
(COMMERCIAL BREAK)
LEMON: All right, here we go. This is just the beginning. The drama. Some top NBA executives made the trip to Cleveland this week to put in their bids for superstar LeBron James with the bidding starting at around $100 million.
Must be nice, right?
He gets a lot of attention. And you even have mayors, governors and big name entertainers all getting involved. Our sports business analyst Rick Horrow has been following the LeBron sweepstakes. Rick joins us now.
Where does it stand, Rick? Who is still in the running for the Cleveland Cavaliers' star?
RICK HORROW, CNN SPORTS BUSINESS ANALYST: As we speak, my friend -- by the way, doesn't that happen to you at the end of your contracts? Don't you go from city to city, you know, looking for the biggest deal? Never mind. We'll deal with that another time.
LEMON: I love it here. I love it where I am. I want to stay here the rest of my life.
HORROW: Sorry. Sorry, I understand. Cleveland, obviously, $30 million more because they can give him another year on his contract. The NBA does that with their rules to try to keep the superstars home. But there are the Clippers, there are the Bulls, the Nets, the Knicks, the Miami Heat. All of those teams think they are heads and shoulders above everybody else. It's not just LeBron saying show me the money, but it's also LeBron saying show me a winner. He wants to win more than anything else.
LEMON: Yes. I mean, he's made tons of money. He will make more money, right, if he stays where he is.
But, listen, who do you think is the odds-on favorite now? Who's at the top? Is it Chicago? I'm hearing that it's Chicago.
HORROW: Well, yes, I told you earlier, I thought it might be Chicago. And frankly, he's a walkie-talkie free-throw shooting stimulus plan. So, if he comes to Chicago, it would be good for him, as you know, and the city. They have an opportunity to spend more money, put some supporting cast around him. They met with him longer than anybody else.
But he knows Cleveland. So I'm not sure sitting in a meeting meant something. But the papers around here in Miami, they are all excited about him, and I'm sure in New York with the Nets and the Knicks. There is a rumor they're going to change the name of that borough to LeBronx, by the way.
LEMON: LeBronx? Hey, I'm going to ask you, you know, and most other professions, right -- and I don't know if this would be the same for, you know, the NBA. But New York is a kingmaker, no matter -- in most professions. So would it not be the same way for LeBron James if he came here?
HORROW: Well, LeBron is such a worldwide global icon now. Remember, $45 million or so, Don, he makes every year. And he does have big deals with Coca-Cola and Nike, but they are both global companies. You know, Nike, headquartered in Beaverton, Oregon -- it doesn't really matter where he does his thing in Cleveland, New York or elsewhere.
And the argument about making more endorsement money, it might be a little bit. But the bigger argument is where does he go to get not just one NBA championship, but a lot of them.
LEMON: I understand what you are saying. But it's not using not just for the profession that he's in. It's for everything else. It's the media capital of the world. It's the financial capital of the world. And everything that goes on around here sort of adds to the illusion and makes -- you know, pumps one's star power up.
But let's move on now. Let's turn to a sport that may be quite -- not quite as big as the NBA, but it's gotten a heck of a lot of attention this weekend. We're talking about the Nathan Hot Dog Eating championship. It's grown into a really big deal. Just how big a deal is this? I mean -- because this was live today on national television. HORROW: Yes, and it's also in New York.
LEMON: There you go.
HORROW: I don't know how big the sport is but the guys who ate those hot dogs are pretty darn big. The bottom line is 1.5 million viewers on ESPN. About 35,000 attendance. Pepto-Bismol, as you might expect, my friend, is the sponsor. Joey Chestnut, 54 hot dogs, at $3.20 a piece. That's $173 on hot dogs itself. And by the way, the first prize, $20,000, which probably doesn't, Don, cover Kobayashi's bail money.
LEMON: Right. But don't you think -- so that's what I say, Kobayashi is probably going to end up being a much bigger star now or hot dog eater or champion eater than he would if he had just abided by the contract and just -- if he had been done with Nathan's. I said he's going to be a bigger star now. He's bigger than Nathan's now.
HORROW: He's bigger than Nathan's. And remember -- you hit on the head. It's a personal services contract. They told him he can only do "x." He was being paid good money. He wanted to do more than "x," jumps on the stage. And now he's a celebrity and Don Lemon mentioned him as least three or four times on Sunday night.
LEMON: There you go. To thine own hot dog be true.
HORROW: Oh, wow. Very prophetic, my friend. See you next week.
LEMON: All right. Thank you. See you next week.
And you can read Rick's blog at cnn.com/don.
You know, you could say that Steven Carse watched as his corporate job melted away. The former AIG employee has started a cool new business that's paying the bills now.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: You can buy popsicles in the store there. I would rather eat rocks compared to this.
UNIDENTIFIED MALE: I heard a story. I guess he used to be like in an office, like an office worker. And when his little stand popped up, it was like gangbusters right away.
(END VIDEO CLIP)
LEMON: We'll hear from the "King of Pops," straight ahead.
(COMMERCIAL BREAK)
LEMON: So on Sunday, we always want to try to catch you up on some of the news you may have missed this past week going into the next week. And here's the first story.
Good taste, it is a quality these greeting cards claim to have, literally. A new line of American greeting cards called Tasties includes dissolvable strips the recipient can eat. The flavor of the strips corresponds with the message. They include cupcake, chocolate, doughnut and margarita. Do we need any more to make us fatter? Now you can buy Tasties at stores nationwide.
Bill Clinton has enjoyed a post-presidential boost in his income. Since leaving the Oval Office, the former president has made just under $65 million in public speaking fees. That's a hefty sum. Just take a look at the last several years. In 2009, he made about $7.5 million for 36 paid speeches. In 2008, he brought in $5.7 million for 25 speeches. And in 2007, a banner year, he brought in over $10 million just talking to people. Most of his paid speeches have been to overseas audiences. The president -- former president apparently a big hit overseas.
Ranking presidents. Every eight years, more than 200 scholars do it. And this year, they once again rank Franklin Delano Roosevelt as the best president, a position he's held since the survey started in 1982. For the first time in 20 years, another Roosevelt, Teddy, assumed the number two slot, pushing Abraham Lincoln to number three. George Washington was ranked fourth. Skipping down the list, John Kennedy came in 11th. President Obama, number 15th. Ronald Reagan in the 18th slot and George W. Bush fell from his previous ranking of 23 to 39. And just in case you were curious, Andrew Johnson came in last.
So remember the Wall Street meltdown and the huge AIG bailout? While some of those AIG employees were still collecting bonuses, others were losing their jobs, like the 26-year-old analyst you are about to meet. After being let go by the company that was "too big to fail," he's finding success on a much smaller scale, though. And on this hot holiday weekend, business is booming.
CNN writer Dan Donahue and photographer John Pearson bring us his story.
(BEGIN VIDEOTAPE)
STEVEN CARSE, FORMER AIG EMPLOYEE: It's $2.50.
My name is Steven Carse. I sell popsicles. I started a company named "King of Pops." I used to work at AIG. I was a product analyst. I was in front of spreadsheets all day. And when all of the AIG things started to happen, I guess I kind of happened with it, and I was laid off along with a lot of people in my division. I didn't feel like going back into insurance, trying it again. So I decided to try this.
UNIDENTIFIED MALE: Umm, that's really good.
UNIDENTIFIED FEMALE: I got chocolate sea salt. I was told it was life altering.
CARSE: I get all my ingredients at farmers' markets around town. We're processing strawberries, washing them, washing peaches, cutting peaches open, getting the pit out. It's a lot of work, but you have to do it if you want it to be fresh.
The demographic that is drawn towards our stuff, they like supporting local business. They like getting a good, fresh product.
SCOTT NESBIT, ATLANTA RESIDENT: You can buy popsicles in the store. I would rather eat rocks compared to this.
UNIDENTIFIED MALE: I heard his story. I guess he used to be in an office, like an office worker. And when his little stand popped up, it was like gangbusters right away.
UNIDENTIFIED MALE: It's unusual to hear like pineapple habanera or a mango habanera. Mango chili is really popular.
UNIDENTIFIED FEMALE: I ordered one of everything. I love turning my friend on to all these unique tastes.
CARSE: I've been known to dip into the stash a little bit. You have to sometimes if you are hot enough. So I try to keep it under four a day, which is a pretty good amount of popsicles.
We're just getting started. And so we probably don't have the same benefits that I had when I was working at AIG.
Try not to get sick. That's the first -- that's the first plan.
I'm definitely happier. I'm in the popsicle business for the long haul.
UNIDENTIFIED MALE: Umm.
(END VIDEOTAPE)
LEMON: Very nice. I'm Don Lemon. Happy Fourth of July, everyone. Thanks for joining us. Good night.
