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Jobless Benefits Stall in Senate; Remembering George Steinbrenner; Nuclear Scientist at D.C. Embassy

Aired July 13, 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. Many of you are out of work and expressing your frustration. What is Congress doing to help?

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: My unemployment's about to run out. And so I've spread my search from looking for just a full-time jobs to I'm really wanting to get a part-time job.

(END VIDEO CLIP)

He was known as the boss and his New York Yankees dominated baseball. We're looking back at his impact. And you're online right now, we are, too. Josh Levs is following the top stories trending on the internet - Josh.

JOSH LEVS, CNN CORRESPONDENT: Hey there, Tony.

We are hearing from you about joblessness in America, what needs to be done. We're going to have that coming up in just a minute from our blog. Plus, a key player has come out swinging against buying the iPhone 4 saying, don't buy it. I'm going to have that for you, this hour.

HARRIS: All right. Let's get started with our lead story. We are expected to hear live from President Obama any moment now. The topic from the White House Diplomatic room we are told will be the economy. The president has been in a meeting with Democratic congressional leaders for much of the morning laying out his legislative priorities before the August recess.

We will bring you President Obama's statement when it happens.

You know, one of the president's goals, renewing unemployment benefits for out-of-work Americans. The bill was stalled in the Senate.

Congressional Correspondent Brianna Keilar is at Capitol Hill.

And Brianna, how many people -- let's start with this -- how many people are on these benefits right now? And my guess is the number of people who need them or who could be running out of them will simply continue to grow.

BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: Well, that's the expectation at least for, I would say, another week here, Tony. But let's just break it down, because it's been weeks now that Congress has been unable to extend these unemployment benefits.

So what you've had since really the impasse over extending them, which was at the end of May, you've seen 2.1 million people who have been affected, who have seen their unemployment benefits just end. And they're going without that assistance. If this were to continue, through this month, through July, you'd be looking at 3.2 million people who would be affected by the end of the month.

Now, what normally happens in a rough economy like this, Tony, is Congress will extend unemployment benefits. But what you have this year is sort of a new tension going on over deficit spending.

You know, a lot of Americans are concerned about this, and a lot of lawmakers are concerned about this. And so it's really fracturing the Senate on pretty much partisan lines here.

You have Republicans saying, you know what? You have to pay for this. This has to be offset in spending. And you have Democrats saying no, it's an emergency, we need to push this through. And so you've been seeing the votes that are almost split on party lines.

I should mention that there is one Democrat who's been voting with Republicans on this. A couple of Republicans who seem to be coming over on the side of Democrats -- Tony.

HARRIS: So let's sort of flash forward here. The bottom-line question is, will this pass? And if it's to pass, where will the votes come from, Brianna?

KEILAR: Democrats are planning on passing this. And the expectation is that they're trying to do this here in the next week or so.

Here's the game plan.

What they're looking to do is pick up votes on this from Senator Olympia Snowe and Senator Susan Collins of Maine. They actually voted for an extension of these unemployment benefits last time this was up for a vote, although, ultimately, that did fail, as we know.

But the problem here as well is that Democrats are missing one of their own. You know Senator Byrd passed away recently, and there hasn't been a replacement for him. We could be seeing that here this week. We could be seeing perhaps his replacement coming in next week. And it's really that vote the Democrats are relying on to pass this.

Bottom line, though, Democrats say they are planning to hopefully take care of this next week, and certainly get this all wrapped up before the August recess. But Tony, there have been so many failed votes, that it's one of those issues for continuing just to really keep an eye on to see, is it going to go through? And at this point, I should tell you this bill, it's not just unemployment benefits.

There are other thing, aid to states that are tacked on. And that's something that bothers some Republicans as well. So we understand that this bill the Democrats are trying to push through will just be a standalone bill for an extension of these unemployment benefits.

HARRIS: OK.

Brianna Keilar on Capitol Hill for us.

Good to see you, Brianna. Thank you.

Our viewers, you, are certainly sounding off about Congress, saying it should be doing a lot more to end these high unemployment rates. Josh is following that story for us.

Josh, what are you seeing?

LEVS: Wow, your blog is filled up, Tony. I was out yesterday. I'm taking a look at what has come in.

All this talk about jobs and what needs to be done. A lot of people very frustrated. A lot of people saying the government has a responsibility to do a lot more than it's been doing.

Let's go right over to the blog, what you've been posting at CNN.com/Tony.

Look at this from Janice. "Have Congress lose their paychecks for several months. See how fast they pass the unemployment benefits and COBRA extension."

Now, Here's from Charlotte Bentz. "Congress should have to live on unemployment for 26 weeks. Then tell the people they would rather be on unemployment instead of working. As the old saying goes, try walking a mile in my shoes."

Becca Waters: "I think Congress should focus on unemployment benefits. There are not enough jobs because of the recession. People are having to rely on help from local churches and food banks."

I think I've got time for two more here.

This is from Michelle. "Unemployment benefits and the jobs bill should be the top priority. These two items have a huge impact on the day-to-day lives of so many American. For those not getting paid while the Senate is debating the issue, it is devastating."

And we can end with this from Jack: "First things first, pay cuts. Congress clearly is overpaid."

And Tony, we've read through hundreds and hundreds of what we've been getting. It's all similar to this. It's all frustration and anger, feeling that the government has responsibility to do more to build these jobs.

HARRIS: Look, let's keep this conversation going. I love it. I love that you're responding to all of this.

And Josh, the other thing that you have been doing for us is you've been following some winning strategies for people who are find some success of finding a job.

LEVS: Yes. Let me give everyone some tools right here.

First of all, I want to encourage you to go to CNN.com/jobs, because there's a lot of great stuff that you should be taking a look at right there. You have a map here, for example.

Depending on what your industry is and what kind of work you want to do, ,you can find guides about where you might want to be in the United States. You can just click on "Jobs by Industry." Then you click on what industry you want to work in.

Say you want to work in manufacturing. All of a sudden, it tells you what things are like in each state. You can click on each state. This can help you.

And Tony, along with this, what you're also seeing are some of these great strategies that we're telling you about here, like someone who went in for an interview, and instead of doing the interview, just started doing the job, just started pretending there were people there. She started doing the job.

We had this other guy that I think is so brilliant who sent out 1,500 resumes, got no responses at all. And then he got this idea of sending coffee cups by FedEx to the heads of the banks where he wanted to work.

HARRIS: Yes.

LEVS: He got instant notification by text when they signed for it from FedEx. Boom. He called them and said, "Will you have coffee with me?" In a matter of weeks, he got six different offers just out of 10 banks.

So what we're seeing are people who are clever, unique, great ideas.

One more thing that might make you feel happy. I talked to an expert, as you remember, Tony, a few months ago. And she told me -- she's an economist. She said now is the time to be your own boss.

HARRIS: I do love this.

LEVS: If you look back on history, it is the case that a lot of the greatest companies that still exist today were started by individuals during recessions who had no jobs. So a little bit of hope there for people out there in that situation. Now might be the time to be your boss.

HARRIS: Well, you certainly have to reinvent yourself. There's no doubt about that.

And just know, if you're going to try to start up one of these new businesses, chances are you're going to have to bootstrap a lot of it. But I think that economist is right. You know, now is at least a moment to think about what you really want to do. Where your passions lie.

Josh, are you gone?

LEVS: Yes, you've got it.

HARRIS: All right. See you, Josh.

LEVS: See you.

HARRIS: Today's scheduled vote on the nomination of Elena Kagan to the Supreme Court has been postponed at the request Republicans. They want more time to review Kagan's testimony. She is likely to be approved by the Senate Judiciary Committee, made up of 12 Democrats and seven Republicans. The timing of the panel's vote pushed back one week.

He was a self-described tough boss who reigned over a sports empire. Remembering New York Yankees' owner George Steinbrenner, who died today at age 80.

(COMMERCIAL BREAK)

(NEWSBREAK)

HARRIS: Yankees' owner George Steinbrenner is being remembered as a giant in the world of sports, a self-confessed tough boss. Steinbrenner died today after a massive heart attack. He had just turned 80 on July 4th.

Steinbrenner bought the Yankees in 1973 and was the longest tenured owner in Major League Baseball. The team one seven World Series titles under his ownership.

Just last hour, I talked with "Sports Illustrated" writer Tom Verducci about whether the Steinbrenner years were good or bad for baseball.

(BEGIN VIDEOTAPE)

TOM VERDUCCI, WRITER, "SPORTS ILLUSTRATED": They had to be good for baseball, because if you went back to 1973, when George Steinbrenner bought the team, you didn't care about the Yankees. They were not a threat. They certainly didn't have the international brand recognition that they have right now, which is one of the best in the world, obviously. And it's because of George Steinbrenner.

He actually was so successful at what he did, baseball had to change its economic system. The Yankees were making so much money, that they said, hey, we need revenue sharing, we need to find a way with George to share his money with us. And that's why we have revenue sharing today. He was that successful.

HARRIS: Yes.

Tom, did it ever bother him -- and I think the answer to this is probably no -- that the common perception was that he bought his championships. The winning at all costs, at any price?

VERDUCCI: No, that never bothered him. That question always came up with him. But his point was, we take the money we make and we funnel it right back into this team.

You know, he was really proud of the fact that when he went to New York, cab drivers and truck drivers and Yankee fans recognized him and thanked him for spending money. And I think he got a huge kick out of that, more than the criticism he got from other cities.

HARRIS: Yes.

Do you have a favorite Steinbrenner story?

VERDUCCI: There's so many. But I was covering the team back in the 1980s. And I'll always remember the rooftops at old Fort Lauderdale Stadium where George had a box. And you had to stop by after a game if the Yankees had a bad game, because he was really ripping into his players at any moment.

You were on call all the time covering George Steinbrenner. It wasn't always fun, but it was always interesting.

HARRIS: Tom, we're going to put up a couple of "Sports Illustrated" covers of George Steinbrenner.

How do you think he will be remembered?

VERDUCCI: Well, I think he'll be remembered as a guy who cared so much about winning, that it cut both ways. Obviously, it helped get him suspended from baseball on two separate occasions. He did run through managers in an almost comic fashion.

But at the same time, he has all the rings to show for it, the championships. And I think it's the fact that he really did spend a lot of money.

And it depends on what your perspective is. If you are a fan of the Yankees, you loved George Steinbrenner because you knew every year, he was going to spend money to give your team a chance to win.

(END VIDEOTAPE)

HARRIS: That's for sure.

An Iranian nuclear scientist takes diplomatic cover in Washington. As you'll find out, the U.S. and Iranian government have very different explanations for his actions.

(COMMERCIAL BREAK) (NEWSBREAK)

HARRIS: Intrigue in Washington. A nuclear scientists is holed up at the Pakistani Embassy today demanding to go home to Iran. How the man got to the U.S. last summer and where he's been since remains pretty unclear at this point.

Pentagon Correspondent Chris Lawrence joins us now.

And Chris, first of all, this man's name is Shahram Amiri. He was kidnapped, but the U.S. says nonsense to that charge?

CHRIS LAWRENCE, CNN PENTAGON CORRESPONDENT: Yes. Maybe he was kidnapped. These stories are flying all over the place, Tony.

What we do know is Shahram Amiri was on a religious pilgrimage last year in Saudi Arabia. He was performing the Hajj. He disappeared.

Iran says that he was kidnapped by an American agent, taken to the U.S. and tortured. Now, the United States, a U.S. official, is saying that's nonsense, that Amiri is here of his own free will, he came here of his own free will, he's been here freely, and he's freely now going back to Iran.

He has made several videos that were posted on YouTube that don't clear up the situation very much. In one video, he claims that he was abducted and was being tortured here in the U.S. In another video, he says, no, I was just here studying. He tells his family he's OK and he wishes his family well.

So, what to believe? Well, a former U.N. nuclear weapons inspector says a senior U.S. official told him that Amiri had asked to come to the U.S., and that he was providing information about how to weaponize nuclear energy.

HARRIS: All right. Let's do this -- Chris, appreciate it. Thank you.

As promised, the president of the United States making remarks on the economy.

(JOINED IN PROGRESS)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: -- put politics and partisanship aside to support his reform. And I'm grateful for their decision, as well as all the Democrats who have worked so hard to make this reform a reality, particularly Chairman Dodd and Chairman Barney Frank.

What members of both parties realize is that we can't allow a financial crisis like this one that we just went through to happen again. This reform will prevent that from happening.

It will prevent a financial crisis like this from happening again by protecting consumers against the unfair practices of credit card companies and mortgage lenders. It will ensure that taxpayers are never again on the hook for Wall Street's mistakes. And it will end an era of irresponsibility that led to the loss of eight million jobs and trillions of dollars of wealth.

This reform is good for families. It's good for businesses. It's good for the entire economy. And I urge the Senate to act quickly so that I can sign it into law next week.

Now, as we finish our work on Wall Street reform, we're also mindful that we've got significant work to do when it comes to reforming our government and reducing our deficit.

As part of that work, today I am proud to announce the nomination of Jack Lew to be the next director of the Office of Management and Budget, or OMB. Before telling you a little bit about Jack, I just want to say a few words about the man that he will be replacing at the helm of OMB, and that's Mr. Peter Orszag.

A few weeks ago, Peter told me that after more than a year and a half of tireless, around-the-clock service in what is one of the toughest jobs around, Peter was ready to move on to a job that offers a little more sanity and fewer line items. Putting a budget together for the entire federal government is an enormously difficult task, no matter what the state of the economy. But Peter's job was even tougher.

When we walked through the doors of the White House, we not only faced the worst economic crisis since the Great Depression, we also faced a $1.3 trillion deficit, a deficit that was caused both by the recession and nearly a decade of not paying for key policies and programs. In light of these challenges, Peter accomplishments as director of OMB are even more impressive.

He was instrumental in designing and helping us pass an economic plan that prevented a second depression, a plan that is slowly but surely moving us in the right direction again. Thanks to his innovative ideas and gritty determination, we passed a health insurance reform plan that is not only paid for, but will significantly lower the cost of health care, as well as our deficit over the next several decades. In fact, a recent report by independent experts say this reform will cut the deficit even more than the Congressional Budget Office first estimated.

Peter's also helped us single out more than 100 programs for elimination that have outlived their purposes, and made hard decisions that will save tens of billions of dollars. And he helped draft a budget for next year that freezes all discretionary government spending outside of national security for three years, something that was never enacted in the prior administration.

It's a project that will reduce the deficit by more than $1 trillion over the next decade, which is more than any other budget in a decade. And I expect that freeze to become a reality next year.

Now, Peter also shares my view that the long-running debate between big government and small government misses the point. It isn't relevant to today's challenges. The real debate is about how we make government smarter, more effective, and more efficient in the 21st century.

It's easy for any institution to get in the habit of doing things the way they've always been done. We in government can't afford that habit, not only because it wastes taxpayer dollars, but because it erodes people's belief that their government can actually work for them.

Over the last year and a half, we've been able to employ new technology to make government more responsive and customer-friendly, the same way that so businesses have used technology to make better products and provide better services. As a result of these efforts, today we're creating a single electronic medical record for our men and women in uniform that will follow them from the day they enlist until the day they are laid to rest.

We're cutting down the time that it takes to get a patent approved by cut ought the unnecessary paperwork and modernizing the process.

We're working to give people the chance to go online and book an appointment at the Social Security Office or check the status of their citizenship application.

We're cutting waste by getting rid of federal office space that hasn't been used in years.

We're closing the IT gap in the federal government and have created mobile apps that provide nutrition information for your favorite foods or wait times at the airport.

And the examples go on and on.

Now, inertia is a powerful thing. Constituencies grow around every agency and department with a vested interest in doing things the same way. And that's why we have to keep on challenging every aspect of government to rethink its core mission, to make sure we're pursuing that mission as effectively and efficiently as possible, and to ask if that mission is better achieved by partnering with the civic, faith and private sector communities.

This is a mission that requires some special leadership. And Jack Lew is somebody who has proven himself already, equal to this extraordinary task.

You know, if there was a hall of fame for budget directors, then Jack Lew surely would have earned a place for his service in that role under President Clinton when he helped balance the federal budget after years of deficits. When Jack left that post at the end of the Clinton administration, he handed the next administration a record $236 billion budget surplus. The day I took office, eight years later, America faced a record $1.3 trillion deficit.

Jack's challenge over the next few years is to use his extraordinary skill and experience to cut down that deficit and put our nation back on a fiscally responsible path. And I have the utmost faith in his ability to achieve this goal as a central member of our economic team.

Jack is the only budget director in history to preside over a budget surplus for three consecutive years. When Jack was deputy director at OMB, he was part of the team that reached a bipartisan agreement to balance the budgets for the first time in decades. He was a principal domestic policy adviser to Tip O'Neill and worked with him on the bipartisan agreement to reform Social Security in the 1980s.

He was executive vice president at New York University, where he oversaw budget and finances. And for the past year and a half, he's been successful in overseeing the State Department's extremely complex and challenging budget as deputy secretary of state for management and resources.

I was actually worried that Hillary would not let him go. I had to trade a number of number one draft picks to get Jack back at OMB. But I am grateful that Hillary agreed to have Jack leave, and I'm even more thrilled that Jack agreed to take on this challenge at this moment.

Jack is going to be an outstanding OMB director. We know it because he's been one before.

At a time when so many families are tightening their belts, he's going to make sure that the government continues to tighten its own. He's going to do this while making government more efficient, more responsive to the people it serves.

And Jack, I am looking forward to working with you on your critical mission. Thank you so much.

And thanks to Jack's family, who has been putting up with him in multiple very difficult jobs over and over again. We appreciate his service to our country, and we appreciate yours as well.

Thank you, everybody.

HARRIS: And there you have it, the president announcing Jack Lew from the Clinton administration to replace Peter Orszag at the Office of Management and Budget.

The president also pushing the Senate to pass financial reform so that he can sign it into law as early as next week. The votes apparently are there. And the president announcing steps and highlighting efforts to make the government operate more efficiently.

Still to come this hour in the "CNN NEWSROOM", the FDA takes a closer look at the dangers of a popular diabetes drug. We will look at what's behind a meeting that is going on right now.

We're back in a moment.

(COMMERCIAL BREAK) HARRIS: An FDA advisory committee is meeting at this hour to decide whether to recommend the diabetes drug Avandia be pulled off the market.

CNN Chief Medical Correspondent Dr. Sanjay Gupta explains why.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Turn it on. And let it heat up.

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT (voice-over): Edward Darden (ph) was diagnosed with diabetes 10 years ago. In 2006, he started taking Avandia to control his blood sugar. And then came a study in "The New England Journal of Medicine." The headline: "A 43 Percent Increase in Heart Attacks" for patients on Avandia.

Dr. Steven Nissen wrote that article in 2007, and an update last month. He's giving a presentation to the FDA.

DR. STEVEN NISSEN, CARDIOVASCULAR MEDICINE, CLEVELAND CLINIC: We've had evidence now for a number of years that Avandia increases the risk of heart attack in diabetic patients.

GUPTA: But, in 2007, this same panel voted, 22 to 1, that the evidence was too weak to take Avandia off the market. One reason, a large clinical trial called Record. It was funded by GlaxoSmithKline, the company that makes Avandia, and shows "no increased risks." But it's taking some heat. On Friday, the FDA posted an analysis by one of its experts who said Record is full of holes. He said that researchers didn't follow up on reports of bad outcomes, even for some patients who died.

NISSEN: I've been following the FDA for 20 years. I've never seen an FDA review as blistering as his review of the Record trial.

GUPTA: This is Dr. Murray Stewart, a top Glaxo scientist. We asked him to come on camera. He didn't want to before the hearing. He did tell us by phone, "Avandia is safe." And he said that "six clinical studies," not just Record, back him up.

It's extremely confusing for diabetes specialists, like Barbara Onumah at Washington Hospital Center.

DR BARBARA ONUMAH, WASHINGTON HOSPITAL CENTER: There is a lot of information out there and we don't know which to believe. And I think this is where we really rely on the government agencies to give us some direction as to whether the medicine is safe or not.

EDWARD DARDEN, DIABETES PATIENT: If there's a better alternative, something that doesn't have as much risk, I'd rather do that. And I think that's what we do.

GUPTA: Edward Darden didn't wait. He switched to another medication. And he's not alone. Prescriptions of Avandia are down by two-thirds in the past three years. Dr. Sanjay Gupta, CNN, reporting.

(END VIDEOTAPE)

HARRIS: Six months after the earthquake and billions of dollars pledged for recovery, Haiti still looks like this -- debris everywhere and tent cities as far as the eye can see. CNN's Anderson Cooper asked former President Clinton, who's been a point man for the recovery, why it's lagging.

(BEGIN VIDEO CLIP)

ANDERSON COOPER, CNN CORRESPONDENT: In terms of other jobs you've done, how tough is this one? Where does this compare?

BILL CLINTON, FORMER U.S. PRESIDENT: Well, the geographical expanse of this, as compared with the tsunami, it's much more narrow. That's get news.

The fact that the Dominican Republic, the nearest neighbor, is committed and all the Caribbean and Central and South America and Mexico are committed. As I've said, you know, this is something that Venezuela, Cuba and the U.S. agree on, but also all of our neighbors, all the neighbors to Haiti. That's good news.

But I've never dealt with a place that lost essentially its urban center and 30 percent of its population and far more than that of its GDP. We've just got to go back and reconstruct it.

(END VIDEO CLIP)

HARRIS: CNN's Ivan Watson checked up on earthquake survivors he met six months ago.

(BEGIN VIDEOTAPE)

IVAN WATSON, CNN CORRESPONDENT (voice-over): We last saw Michel Clervil six months ago, looking lost with his wife, Ajuan (ph), in a sea of makeshift tents. They had just taken shelter with their children in this filthy camp and they still appeared to be in shock. In fact, Michel was one of the lucky ones, because everyone in his family survived the collapse of his five story house.

WATSON (on camera): I mean this is amazing. There were six people in this building and they all made it out alive without any injuries.

WATSON (voice-over): In the first days after the earthquake, Michel began single-handedly demolishing what was left of his house. It had been his only source of income. This middle-class father of six put his kids through school by renting out rooms to tenants. Today, this is all that's left. An empty lot littered with garbage.

When I met Michel last week, I expected to hear that the last six months had been very difficult. But I did not expect to hear this.

WATSON (on camera): Michel says six weeks, six months, rather, after the earthquake, life doesn't make much sense to him anymore, it's futile, because a couple of months after the earthquake, after his house was destroyed, his wife, who we met, passed away from a stroke.

WATSON (voice-over): "She was listening to the news on the radio," Michel says. "She heard that we would all have to all leave and move elsewhere and then she collapsed on the ground."

Michel and his son, Chesnay, bring us to a cemetery. This is where they buried Ajuan. She was 55 years old and had high blood pressure. Her son believes she's another victim of the earthquake.

"It was the aftershock, again, and again," he says. "She just couldn't take the stress."

After sunset, Michel takes us to this camp where he now lives. A hard rain begins to fall as we walk through a maze of shacks to reach his shelter. There is no electricity here, just a one-room hut with a bed and a leaky roof, lit by the occasional flash of lightning.

According to some estimates, the earthquake killed at least 220,000 people, but it is much harder to quantify the impact this terrible act of nature continues to have on millions of Haitians. Michel Clervil is now penniless, homeless and heartbroken. He is a survivor of the earthquake.

Ivan Watson, CNN, Port-au-Prince.

(END VIDEOTAPE)

HARRIS: So the president tweaks U.S. strategy on HIV. Plus, the recession's toll in the battle against the virus. We're back in a moment.

(COMMERCIAL BREAK)

HARRIS: Boy, you're really going to love what's happening with stocks today. Let's get to you the best financial website on the web, cnnmoney.com. Let's see, we are just past three hours into the trading day. Look at this, "stocks spike on renewed optimism." Yes. How often do we get to say that - underline, exclamation point, optimism. Alcoa's surprisingly upbeat results reassure investors. Look at the Dow. We are up 165 points. And the NASDAQ, up 38 points, as well. We're following these numbers throughout day for you.

The White House unveiling its new national strategy to fight AIDS this afternoon. It comes as more people struggle to afford life-saving HIV drugs. Patricia Wu is joining us now from New York.

And, Patricia, my guess is, this struggling economy has been - has taken a toll on the fight against HIV and AIDS.

PATRICIA WU, CNN CORRESPONDENT: Your guess is right, Tony. It is making that fight much harder. And here's why. You know that losing your job usually means losing your health insurance. So for people with HIV, it means they need government assistance to pay for the medicine that helps them stay healthier and live longer.

And these drugs are really expensive. The government pays an average of $12,000 a year per person. It's even more if you have private insurance.

But the state budgets are stretch so thin right now that people have to go on waiting lists to qualify for that help. Currently, 2,100 people in 11 states are on waiting lists for the AIDS Drug Assistance Program.

And that's not all. States are also limiting eligibility and enrollment while cutting back on which drugs they will cover. And thousands of people are affected by this. More than 168,000 people received their meds through this program last year, Tony.

HARRIS: So, Patricia, does the president's new strategies sort of address this financial challenge?

WU: Well, the plan that's being announced today is not expected to include an increase in federal spending. But, last week, the administration did allocate an additional $25 million to help get more people off those waiting lists for drug assistance. The problem is, it just may not be enough. Advocacy groups and state officials have been asking for an extra $126 million this fiscal year. That's five times as much.

So what you can do if you get put on a wait-list or, worse, kicked off the program? Well, you can contact the drugmaker. Most pharmaceutical companies have programs that provide discounted or even free medicine to people who can't afford it. And advocates tell us that other relief is also coming when provisions of the new health care law kick in, making more people eligible for health care subsidies. But that doesn't take effect until 2014, so it is a long time to wait if you need those drugs to survive.

Tony.

HARRIS: Yes. OK, Patricia, appreciate it. Patricia Wu with "The Breakdown" for us.

Still to come in the NEWSROOM, they were wounded in the country they worked so hard to help. American missionaries caught in the bombings in Uganda now fight for their lives.

(COMMERCIAL BREAK)

HARRIS: OK. Day 85 of the oil disaster. We will soon know if the new containment cap installed yesterday can stop the leak. This morning, scientists began testing the cap's ability to hold the pressure of the well.

Other top stories we're following for you.

Today's vote on the nomination of Elena Kagan to the Supreme Court has been postponed at the request of Republicans. The Senate Judiciary Committee is now expected to vote on whether to confirm her next week.

And legendary Yankees owner George Steinbrenner has died after suffering a massive heart attack. Steinbrenner, who was 80, led the Yankees to seven World Series championships.

(COMMERCIAL BREAK)

POPPY HARLOW, CNNMONEY.COM: All right, time now for "The Help Desk," where we get answers to your financial questions. Joining me this hour, Donna Rosato, a senior writing with "Money," and Ryan Mack, the president of Optimum Capital Management.

Thanks for being here guys.

Let's start with you, Donna. You've got a question from John. John wrote in, "I was going to close out my Bank of America Visa card because I don't need. A customer service rep told me closing that card could affect my credit score because I'm closing a line of credit." Is he right?

DONNA ROSATO, SENIOR WRITER, "MONEY": He is right. It may not seem like a big deal to close down a card that you don't use very much, but it really can affect your credit score. That's because of something known as your credit to debt limit ratio. And all that really means is how much debt you have and how much credit is available to you. If he shuts down that one credit card, there's less credit available to you and you're considered more of a risk.

HARLOW: Sure.

ROSATO: So how much will it actually affect his score? Well, it depends on how many other credit cards he has and how - does he have auto loans, student loans, other things like that. The best thing to do, if he doesn't use it very much, maybe use it periodically.

HARLOW: OK.

ROSATO: Or if he has a lot of other credit available to him, it might not hurt his score very much. Just keep in mind that it really depends on the mix of credit that you have and the other loans that you have available to you.

HARLOW: OK, got to look at the whole picture here.

All right, Ryan, your question comes from Sam. Sam writes, "what are the advantages or disadvantages of taking what's left of my 401(k) or IRA funds, cashing it or buying property? My 401(k) and IRA are declining in value, but property in my area is growing in value."

RYAN MACK, PRESIDENT, OPTIMUM CAPITAL MANAGEMENT: Well, I would like to know where he's living at, because across the country we still have a lot of areas where we still have not seen a lot of property appreciate in value.

HARLOW: Right. Right, right. MACK: However, we don't want to have any knee jerk reactions here. At the end of the day, you have your 401(k), your IRA, these investments. You don't want to be over-leveraged in putting all your money into property. So a lot of individuals, it's a very common question to think about not only they'd have to worry about the taxes they'd have to pay with money coming out -

HARLOW: Big taxes.

MACK: But also, if they're younger than 59 1/2, they have to pay the 10 percent penalty.

HARLOW: Sure.

MACK: So, you know, let's make sure we have a good mix of investments. I would say ride it out with your 401(k), your IRA, and make sure you have the property value at the same time and have a good mix of investments.

HARLOW: Yes, property might look good now, but he's going to get hit big time on the taxes and on that penalty if he's under 59.

MACK: Exactly.

HARLOW: All right, thanks, guys.

"The Help Desk" all about getting you answers. Send an e-mail to cnnhelpdesk@cnn.com or log on to cnn.com/helpdesk to see more of our financial solutions. You can also pick up the latest issue of "Money" magazine. It is on newsstands now.

(COMMERCIAL BREAK)

HARRIS: OK. So you're online right now. We are, too. We're keeping an eye on some of the top stories trend right now on the Internet. To help us do that is this man, Josh Levs.

And we're going to start with the goalie?

LEVS: We've got to start with the goalie kid.

HARRIS: The goalie - can we do that?

LEVS: We've got to -- take a look.

HARRIS: Spain.

LEVS: Take a look at this kid. So here's what happens. This is Iker Casillas who is being interviewed by -- you might think it's a reporter. It's actually his girlfriend.

HARRIS: Wow, have some. Wow.

LEVS: Look at her face afterward. She's not that happy.

HARRIS: What is that reaction? LEVS: I know, look at her reaction.

HARRIS: Can we blow it up a little bit.

LEVS: Watch it a little slower, and then watch -

HARRIS: OK.

LEVS: She clearly is not happy. We think he's going to pay when he gets home.

HARRIS: But that's his girlfriend, correct?

LEVS: And apparently there had been like minor controversy during it. Some people said maybe she was a distraction to him. But, hey, I mean it's Spain and they won.

HARRIS: Oh, now why -

LEVS: Now look at her face. She's like uh-oh. I seriously think he's going to pay for that, that night.

HARRIS: What is this, my integrity? No, no, you're - what is that? And there were other shots of her doing - during the event where she's actually cheering over a save. And now we get this?

LEVS: Well, she was cheering, but she didn't see that kiss coming. She was apparently trying to do her job.

HARRIS: How does she think she got the interview anyway?

LEVS: And now she's being seen all over the world.

HARRIS: Yes.

LEVS: So it will ultimately pay well for her.

And, quickly, Paul is retiring.

HARRIS: Who's Paul?

LEVS: The octopus.

HARRIS: Oh, he's retiring.

LEVS: He's retiring. He's going away. And, actually, you know, eight for eight --

HARRIS: Fine dining at restaurants all over the world, maybe? That's so wrong.

LEVS: The - no, he's going to stay at the aquarium. So you can come visit him in Germany.

HARRIS: Oh, OK. OK. LEVS: And you know what else? Italy is now saying that he's actually Italian because word is that he was caught off the coast of Italy. So now you've got the Italian media saying his real name isn't Paul, it's actually Paolo.

HARRIS: Paolo.

LEVS: He's not Paul the octopus. He's Paolo (INAUDIBLE).

HARRIS: Well Paolo/Paul leaves a winner, right, at the top of his game?

LEVS: Eight for eight. He is the ultimate winner, along with Spain.

HARRIS: Hey, (INAUDIBLE), I don't know, do we have time for one more?

LEVS: I don't think so. We're getting the wrap, wrap, wrap.

HARRIS: Oh, we're getting the wrap.

LEVS: But it's all hot. Check it out on cnn.com.

HARRIS: All right. We've got to go. We're back in a moment. You're in the "CNN NEWSROOM".

(COMMERCIAL BREAK)

HARRIS: Sam and Diane McMutrie raised three kids who grew up and moved away. You know, but after seeing Haiti's devastating earthquake, the couple wanted to do something. They wanted to find a way to help in some way. So they decided to adopt a four-year-old. And that's when little Fredo entered their lives. You have got to meet Fredo.

(BEGIN VIDEOTAPE)

FREDO, ADOPTED CHILD: It's me right here.

DIANE MCMUTRIE, ADOPTIVE MOM: In so many ways he's changed us. I'm glad that he's here. I'm glad that we can make a difference in his life. But he makes us smile every day. He makes us laugh. He says the cutest things. And he is just now the love of our life.

SAM MCMUTRIE, ADOPTIVE DAD: I don't consider ourselves special, though. We just - we just happen to be adopting a Haitian boy who our daughters love and thought it would be great for us.

FREDO: This -- there's Jamie (ph) -

D. MCMUTRIE: Your mom (ph).

FREDO: Yes. And that's Ali (ph).

D. MCMUTRIE: Had you said no to that a year ago, you wouldn't be in this - you know, you wouldn't be enjoying what we're enjoying now. We want him to be able to go back there as a child and just stay in touch with who he is, who his family -- you know, his immediate family. But then also just the people of Haiti as his family.

S. MCMUTRIE: Going forward with Fredo, we're just going to be completely honest with him. He's going to know about his mom, who's still in Haiti. He's going to know about his siblings. You know, it's going to be very open with him.

D. MCMUTRIE: I want him to feel like he's just another kid. You know, like there's no difference. And we love him because of who he is and not, you know, not anything with color or race. We already told his mom that when he's old enough and he wants to go back to Haiti, if that happens, that we would not hold on to him. But we want him to be able to have whatever it is he wants. I just know that we'll do what we can for him. And then when the time comes, we'll let him make his decisions.

(END VIDEOTAPE)

HARRIS: Terrific story, huh?

All right, "CNN NEWSROOM" continues right now with Richard Lui, in for Ali Velshi.