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Oil Leaking from Seabed; Report on Intel Community; Tempest in a Tea Party; Undocumented Students Lobby DC; Immigrant List Outrage; South Carolina's Alvin Greene Gives First Campaign Speech; Severe Flooding in Kentucky and Storms Across Midwest; Hillary Clinton Announces $7.5 Billion Aid Package for Pakistan; Life and Times of Lindsay Lohan

Aired July 19, 2010 - 09:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: Hi, everybody. I'm Kyra Phillips. Here's what we're working on right now.

A new snag a mile below the Gulf of Mexico. Fresh leakage from the busted oil well casts new doubt on BP's quick fix.

Two big political newsmakers while Tea Party activists Mark Williams refuses to say another word. Alvin Greene finally starts to feel comfortable at the mike. Well, sort of.

And from the world of unintended consequences. Can Lindsay Lohan's personal woes be her professional boom? Hollywood's train wreck tracks for jail.

It's 9:00 a.m. in New York, 6:00 a.m. in San Diego. You're live on the CNN NEWSROOM.

Just when you thought the country's long-troubling oil disaster was nearing a resolution, another possible snag on the 91st day. Oil has been found seeping from the sea floor, but not at the busted wellhead.

No details yet about where the leak was spotted or how big it is, but it could add a new troubling dimension to this disaster. The government is ordering BP to reveal its plans for reopening the well.

Meanwhile, BP continues testing pressure on that cap because pressure is rising slowly.

Reynolds Wolf is in New Orleans.

Reynolds, we're not back to square one, but obviously this is a problem. What are you hearing?

REYNOLDS WOLF, CNN METEOROLOGIST: Well, what we're hearing from the seepage is actually in light of -- a lot of really encrypted information. You know, in fact last night when we got the information from both BP and the federal government, it was really kind of a shrouded mystery. There's a lot of unknowns with this.

First of all, we don't know exactly what precisely is seeping up. We don't know the precise location of where this may be seeping up. And we don't know how they got the information in the first place.

But what we do know is that if you have seepage, and at the same time you have a lowering of the internal pressure inside the well, that could indicate a rupture well below the seafloor. And if you have a rupture, that could really compound the problems that we've had.

It could be just almost impossible to stop this and could lead to all kinds of problems. But, again, it wouldn't really harbors that we're going to monitor this thing very carefully. I can tell you they've been monitoring with really seismic monitors. At the same time, they're looking at sonar. They've got a couple of robots that they have under water, taking a look at it also. And of course cameras that you and our viewers across the world have been keeping a sharp eye on.

But as of right now, in terms of the seepage, much of it remains a mystery -- Kyra.

PHILLIPS: All right, Reynolds Wolf, we'll keep tracking it with you.

Meanwhile, the top secret intelligence community here in the U.S. is pretty much out of control. That's the "Washington Post's" big story today. It's also reporting that no one knows really much about intel that's really costing or -- how much it's costing, rather, or if it's even working.

Let's get live to Barbara Starr at the Pentagon.

Barbara, any reaction yet to this report from your grounds?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Kyra, good morning to you.

Officials in the government are saying that they were well aware that this "Washington Post" article was coming. They acknowledged that the intelligence community, of course, has grown significantly since 9/11.

Thousands -- tens of thousands of workers added to it, but they say part of this has been an effort to thwart potential terror attacks. Are there redundancies? Is there overlap? Is there cost that could be saved, that could be cut short?

And they say that they're working on that. But "Washington Post" however, as a result of their two-year investigation, did come up with some pretty interesting facts. For example, there are about 1200 separate government offices that work in the intelligence.

There are nearly 2,000 private companies, contractors with tens of thousands of workers also who work in the U.S. intelligence community. And about 850,000 people have top-secret clearances.

You know what does all of that mean? What the administration had been so concerned about was that "The Washington Post" might have revealed classified information by spelling out the locations of some of these facilities around the country. And a statement had been issued -- from the Office of the Director of National Intelligence saying, quote, "Foreign intelligence services, terrorist organizations and criminal elements will have potential interest in this kind of information."

There was that was much concerned that some details revealed in the article and on the "Washington Post" Web site could have provided terrorists with actually targeting information.

What we now know, government officials telling us that they did convince "The Post" not to publish exact precise addresses of where some of these facilities are located.

All of this likely to get a lot of attention inside Washington, inside the so-called beltway, how much it resonates around the country, how much it resonates in the intelligence services abroad remains to be seen -- Kyra.

PHILLIPS: All right, got it. Barbara, thanks.

And we'll see if the president actually comments on this. He steps up to the podium in the next hour of CNN NEWSROOM. He's expected to talk about the economy and also call on Congress to extend unemployment insurance.

Republicans have blocked the extension three times in the last few weeks. The vote is scheduled for tomorrow. That's live from the White House in the Rose Garden, 10:30 Eastern right here on CNN.

Now to politics of anger and the summer of discontent. Voters looking for change and the midterm elections offering it. Boy, are the elections offering change.

How about that mystery man, Alvin Greene? He never really campaigned for the U.S. Senate in South Carolina yet won the Democratic nomination. And six weeks later, the nominee delivers his first speech.

(BEGIN VIDEO CLIP)

ALVIN GREENE (D), SOUTH CAROLINA SENATE NOMINEE: I'm the best candidate in the United States Senate race here in South Carolina. I am also the best candidate for the -- I am also the best choice for the Image Award next year.

(END OF VIDEO CLIP)

PHILLIPS: Oh, talk about image, how about the Tea Party movement? The rally is already accused of racist undertones, but now outcries of bigotry exploding. The leader of one Tea Party group posts a blog about colored people and the national movement can't move fast enough to get away from it.

(BEGIN VIDEO CLIP)

DAVID WEBB, NATIONAL TEA PARTY FEDERATION: We, in the last 24 hours, have expelled Tea Party Express and Mark Williams from the National Tea Party Federation because of the letter that he wrote, which he, I guess, may have considered satire but what was clearly offensive.

(END OF VIDEO CLIP)

PHILLIPS: CNN crews are in place to break down these stories for us.

CNN national political correspondent Jessica Yellin in South Carolina covering the Senate campaign of Alvin Greene. And Jim Acosta in Washington with the latest right there with the Tea Party movement.

Jim, let's go ahead and begin with you. Tell us what's happening on there within the Tea Party?

JIM ACOSTA, CNN CORRESPONDENT: There's a lot going on, Kyra. As you know, all of this started last week when the NAACP condemned the Tea Party movement for some of those racially insensitive signs and language used at some Tea Party rallies.

That prompted Mark Williams who is a leader of the Tea Party Express to write what he thought was a satirical letter from the president of the NAACP to Abraham Lincoln. That letter was filled with racially charged comments and so over the weekend, as you just played there, a spokesman for another major Tea Party group -- the National Tea Party Federation -- said they have had enough.

(BEGIN VIDEO CLIP)

WEBB: We, in the last 24 hours, have expelled Tea Party Express and Mark Williams from the National Tea Party Federation because of the letter that he wrote, which he -- I guess -- may have considered satire but which was clearly offensive.

And that is what we do. Self-policing is the right and the responsibility of movement or organization.

(END OF VIDEO CLIP)

ACOSTA: Now Mark Williams who's never at a loss for words says he was finished giving interviews on the controversy but he did release a statement slamming the National Tea Party Federation and we'll read it to you.

Quote, "Apparently I have offended the Tea Party leadership," Williams writes. "Mind you there is no Tea Party leadership. Every tea partier is a Tea Party leader but something happens when egos and personalities get in the way," he says.

Now Williams does a point about one thing. The Tea Party movement is not a national political party, so unlike the Democrats and Republicans the Tea Party does not have a national chair or committee.

So it's unclear how much this effect will have from the Tea Party federation on the Tea Party Express -- Kyra.

PHILLIPS: Well, and the latest news, of course, is the fact that he got the boot. So what's the reaction been to that?

ACOSTA: Well, the NAACP apparently is pleased. The president of the NAACP, Ben Benjamin Jealous, had a comment saying that he was happy that these actions are now being taken by the National Tea Party Federation.

(BEGIN VIDEO CLIP)

BENJAMIN JEALOUS, PRESIDENT AND CEO, NAACP: David Webb is showing some real leadership, but with -- you know, but you've got to be honest with people. You can't have people just staring at you, staring at this letter and be, like, golly gee, I don't know if it's offensive, I don't know if it's racist.

Clearly it was racially offensive. Clearly it was a racist statement. You know, clearly you can't see somebody's heart, but you can see their words, and these words are deeply troubling.

(END OF VIDEO CLIP)

ACOSTA: And Kyra, all of this could have a big impact on the fall midterm elections because the Tea Party movement is a major player out there. The Tea Party Express, which as you know is that big successful bus tour that went all over the country last year. Sarah Palin appeared at one of their events earlier this year.

You're already starting to see Democratic groups and different states where there are elections going on, with Tea Party infused candidates on the Republican side, Democrats starting to say, hey, Republicans, you need to get away from these tea parties leaders like Mark Williams.

In fact in Nevada right now, that is already taking place. So Sharron Angle, who's running against Senator Majority Leader Harry Reid, is already getting a challenge from Democrats to repudiate some of the comments made by Mark Williams because the two of them appeared at a couple of her events.

PHILLIPS: Jim Acosta, thanks.

From tea party to party crasher in South Carolina, Democrat Alvin Greene is his party's nominee for U.S. Senate but he had barely campaigned before last night.

(BEGIN VIDEO CLIP)

GREENE: Let's move South Carolina and America forward. Let's get South Carolina back to work from Alvin, South Carolina to Greenville, South Carolina.

Let's reclaim our country from the terrorists and the communists.

(END OF VIDEO CLIP)

PHILLIPS: Interesting political speech. We've heard some of it before. CNN national political correspondent Jessica Yellin was there for the much-anticipated speech.

So, Jessica, what do you think? Do voters have a better idea who Alvin Greene is?

JESSICA YELLIN, CNN NATIONAL POLITICAL CORRESPONDENT: Well, Kyra, it was his first known campaign speech and it was pretty short on specifics. It was short altogether. It lasted just seven minutes.

I'll tell you more about it after the break.

(COMMERCIAL BREAK)

PHILLIPS: Well, he says there should be an action figure of himself, and now he says, well, maybe he should get an Image Award. You know the midterm elections are approaching and a lot of the candidates are casting themselves as political outsiders.

I think by the various phrases we've heard that few candidates are more outside than Alvin Greene in South Carolina. He actually won the Democratic nomination for the U.S. Senate without even campaigning. And six weeks later, he just delivered his first big speech.

CNN national political correspondent Jessica Yellin was there. She joins us from Columbia, South Carolina.

I still think, Jessica, that's like the first time we heard him speak, mouths agape, even this time around.

YELLIN: Yes, Alvin Greene made his debut effort, Kyra, to try to persuade voters that he could run a very serious campaign for the U.S. Senate. Still up for debate whether South Carolina broadly thinks he can, but he did it last night before a friendly audience of hometown voters.

(BEGIN VIDEOTAPE)

YELLIN (voice-over): If there is one person who believes Alvin Greene could be South Carolina's next U.S. senator, it's Alvin Greene.

GREENE: I'm the best candidate in the United States Senate race here in South Carolina. I am also the best candidate for the -- I am also the best choice for the Image Award next year.

(LAUGHTER)

YELLIN: He does not lack confidence. In his debut campaign speech, Greene offered some specifics.

GREENE: Let's pick up what some of the projects that were put on hold after 9/11. Such as improving transportation and infrastructure.

YELLIN: Some standard rhetoric.

GREENE: My campaign is about getting South Carolina and America back to work, and moving South Carolina and America forward.

YELLIN (voice-over): And a glimpse of his political philosophy.

GREENE: The punishment should fit the crime. Fairness saves us money. Let's reclaim our country from the terrorists and the Communists. I know this guy that some folks got into trouble.

YELLIN (voice-over): There were a few unusual moments, especially here where Greene was referring to his own run-in with the law. He faces felony pornography charges.

GREENE: Anyhow, this guy met the criteria for pretrial intervention, but was denied. That same guy, the same guy's trial was scheduled for last week, but was put off. Anyway, moving on.

YELLIN (voice-over): The audience at the NAACP gathering was skeptical at first.

LORETTA BOWERS, ATTENDEE: After I heard about him a few months ago, I was very curious. And when I heard that he was going to speak today, I came so I could find out who he is.

YELLIN (voice-over): But came out largely impressed.

BOWERS: I thought he was wonderful.

YELLIN (on camera): Will you vote for him?

LEE MILLARD, ATTENDEE: Yes.

YELLIN (on camera): And you think he could beat Jim DeMint?

MILLARD: Hopefully.

YELLIN (on camera): Mr. Greene, how do you think you did?

YELLIN (voice-over): When it was all over, Alvin Greene ducked reporters' questions and snuck his one-person campaign out the back door.

(END VIDEOTAPE)

YELLIN: Now, Kyra, there were no campaign consultants or speech writers for Alvin Greene. He tells us he wrote his own speech. And we actually saw it. It was handwritten, double-spaced, on spiral- bound notebook paper. We did try to ask him questions both before and, later, after the speech, as you saw. He wouldn't answer our questions, but says he will in future days, Kyra.

PHILLIPS: Jessica, I'm just curious. You have covered candidates of all types of races. You've seen the most bizarre of the bizarre. How did this strike you?

YELLIN: Obviously, it's remarkable that he's little-known in town and he says unusual things. But I think part of what's so startling about this is we're so used to how professional campaigns are these days. In California, someone spent $90 million running a primary. The fact that somebody can just pop up and win with no effort is just novel. So, I think that is part of the fascination with Alvin Greene. And I could feel it in the audience. They were sort of amused that he did this.

PHILLIPS: Yes. I think we're all fascinated and amused. Jessica Yellin. Thanks.

Let's go cross country. Officer Michael Bailey was just weeks away from retiring after 20 years on the Chicago police force. Somebody shot and killed him outside his home after he'd just finished his shift. Police say Bailey was the third Chicago officer killed since May.

It was supposed to be fun, but it turned into a nightmare. Separate shootings broke out in downtown Indianapolis Saturday night ad crowds left the Indiana Black Expo celebration. Ten people ranging from ages 10 to 18 were hurt, but are expected to be okay. Police haven't made any arrests, but the mayor says he's outraged.

Actress Zsa Zsa Gabor getting ready for hip replacement surgery. It's happening at a Los Angeles hospital. She's 93 years old, by the way. Apparently, she was watching "Jeopardy" at home on Saturday night. She reached over to answer the phone, and she fell out of bed. Gabor has pretty much been confined to a wheelchair since a car accident in 2002.

The cleanup is continuing after severe flooding in Kentucky over the weekend. Jacqui Jeras is following it all for us this morning. Hi, Jacqui.

JACQUI JERAS, AMS METEOROLOGIST: Hey, Kyra. Yes. So devastating what happened. And, unfortunately, we're really concerned that there will be more flooding across parts of Kentucky, Indiana, as well as the Midwest in the week ahead because of a very active weather pattern.

Take a look at the video that we have for you out of Kentucky. It really tells you how devastating it was. The heavy rainfall came down, and the river rose and just wiped out more than 200 homes. Two people were killed here. This was in Pike County after that heavy rain on Saturday night. Cleanup continues today. And this impacted more than 5,000 people.

So the rain down in Kentucky, the area that we are watching at this hour, is a cluster of thunderstorms across the nation's midsection here from the Dakotas down through Nebraska into Iowa and into northern Missouri. And this rainfall is really heavy on top of saturated ground. It will only take a couple inches here to renew flooding in that area.

The northeast also getting in on some showers and thunderstorms. Nothing terribly heavy here at this hour, but we are expecting thunderstorms to delay your travel. If you do have plans from the northeast down towards DC, Atlanta, and Houston, do expect to see delays as a result of that. Now, let's talk a little bit about the severe weather we're expecting in the Midwest as we head into the afternoon hours. We're looking at a moderate risk in the dark red area here. And this will be the big concern. It does include the threat of tornadoes.

On the south side of the system, it's all about the heat. Triple digits is what it's going to feel like again across the plains. Heat advisories in New York City as well. Kyra, feeling really hot and sticky across parts of the south. But there's a little sliver of an area up here to the north where temperatures are feeling good and staying in the 70s, believe it or not.

PHILLIPS: Oh, boy. That's not too bad. Thanks, Jacqui.

Will $7 billion more in aid for Pakistan turn the tide of opinion in favor of the US? Why Secretary Hillary Clinton says yes.

(COMMERCIAL BREAK)

PHILLIPS: Top stories. Day 91 in the Gulf oil disaster, and a new potential glitch. Oil has been found seeping from the sea floor, but not at the well head. The government's giving BP another 24 hours to test the integrity of the cap it put on the well on Thursday.

Washington Post reporting the nation's intelligence community has grown so large that it is unwieldy, unimaginable, and ineffective. The two-year investigation also determined that no one knows how much the intelligence-gathering is costing. The Post says 33 building complexes for top secret intel were under construction or have been built since 9/11. Got an estimated 854,000 people holding top secret security clearances.

And it's curtains for Tea Party activist Mark Williams. The National Tea Party Federation expelled Williams and his Tea Party Express organization. That comes after Williams was highly criticized for an inflammatory blog post that he wrote last week. You'll recall Williams satirized a fictional letter from what called "colored people" to President Lincoln.

(COMMERCIAL BREAK)

PHILLIPS: Secretary of State Hillary Clinton announces a $7.5 billion aid package for Pakistan. And, unlike previous cash coming from the US, to the tune of $9 billion plus since 9/11, this money has no security strings attached. It's strictly for civil improvements as Secretary Clinton tries bridging the trust gap that many Pakistanis have with the US. CNN'S Reza Sayah is live in Islamabad this morning with the reaction to Secretary Clinton's announcement.

Reza, there's a lot of criticism that the US already gives so much money to Pakistan, a place that many believe is harboring Osama bin Laden.

REZA SAYAH, CNN CORRESPONDENT: Yes, Kyra, and I think that criticism is going to continue, but this is an approach that the Obama administration and Mrs. Clinton really believes in. They don't think that a military approach is enough. They think in a fight against militants, you need social and economic development, and Mrs. Clinton in Islamabad, the federal capital of Pakistan, today trying to sell that idea, trying to win as many hearts and minds as possible this morning in Islamabad.

She unveiled a number of plans and programs designed to specifically meet Pakistan's biggest needs. And those are an energy crisis, a water shortage, and jobs. Among the projects, the building of several hospitals, hydroelectric dams, and revamping Pakistan's aging power grid. One of the plans is designed to increase the export of Pakistan's world-famous mangoes. The US hoping that will create jobs here.

Here's Mrs. Clinton earlier today in Islamabad.

PHILLIPS: I thought we were waiting to listen -- are you waiting to listen to sound from Hillary Clinton, Reza?

SAYAH: Apparently we don't have sound from Mrs. Clinton, so let's continue on. She basically explained why this is a good idea, why it's necessary to bolster relations between the US and Pakistan.

And keep in mind, ultimately, it is all about security. The fight against militants. The Obama administration has said that there's not going to be success across the border in Afghanistan if Pakistan doesn't help, if they don't do more against militants. But it's been very difficult sometimes for the US to get Pakistan to do more because of the trust deficit. And Mrs. Clinton hoping these projects will bridge the trust deficit, Kyra.

PHILLIPS: We'll see if it does work, because already that military in Pakistan gets so much money from the US, and that's exactly what we hope it does, is fight terrorism. Reza thanks.

What's going to happen to the Utah state employees who allegedly compiled and released a hit list of illegal immigrants? First, they need a fact check. We talk with Utah's attorney general next.

(COMMERCIAL BREAK)

PHILLIPS: Stocks took a pretty big beating last week. The Dow fell 261 points on Friday. Thanks to some pretty disappointing earnings reports, and this week, hundreds of companies will show their quarterly report cards. Carter Evans monitoring everything for us in the New York Stock Exchange. Hey, Carter.

CARTER EVANS, CNN CORRESPONDENT: Hi, Kyra. Yes, it is going to be a very big week because of those earnings. We should see a bit of a bounce back this morning, and we are in the thick of earnings season. So, what corporate America says is certainly going to affect trading. Generally, earnings are better than expected, but there's some nervousness about big investment banks because all those new restrictions that come to the financial reform bill, they can put a squeeze on some bank profits. So, results from Goldman Sachs, Morgan Stanley, they're going to be a major focus this week. Overall, 122 of the S&P 500 are before (ph) earnings. By the way, I wanted to point out Boeing shares up 2 percent this morning. The company booked orders for 70 planes valued at $12 billion. General Electric and Emirates Airlines are the buyers for those planes. Let's go ahead and take a look at the early numbers where you can see right now. The Dow is up about 52 points. So, we are recovering a bit from last week's big losses. The Nasdaq is up about 12 points right now.

Kyra, a bit more on all this iPhone hubbub. I really like this story. Last week, as you know, Steve Jobs responded to the reception problems offering a free case for the iPhone four. He made a big point of saying that it's not just the iPhone. All Smartphones have reception issues. Today, BlackBerry (INAUDIBLE) is firing back. Not so fast, they say. Don't drag us into this. You can hold a BlackBerry any way you want -- Kyra.

PHILLIPS: So, do you have a blackberry or an iPhone?

EVANS: Does he have a BlackBerry or an iPhone?

PHILLIPS: No, do you? What do you have?

EVANS: How about this? I have a blackberry right now, but I have an order in for an iPhone.

PHILLIPS: OK. So, is that an upgrade or a downgrade? I'm not sure. There's a lot of controversy over that.

EVANS: I'm not sure that, either.

PHILLIPS: All right. Let us know. Thanks, Carter.

President Obama is going to step up to the podium of the next hour of CNN NEWSROOM. He's expected to talk about the economy and also calling Congress to extend unemployment insurance. Republicans have blocked the extension three times in the last week. The vote is scheduled for tomorrow. That's live from the White House Rose Garden at 10:30 eastern right here on CNN.

Now, let's talk illegal immigration, shall we? Sure to be back on the front burner this as supporters of reforming the nation's immigration laws descend on Washington to rally for the so-called "Dream Act." Dream short of Development Relief and Education for Alien Minors Act. The proposed law would allow young people brought to this country illegally a shot at citizenship. Critics call the plan a little more than a pre-packaged amnesty plan.

From dream day to ongoing nightmare. We're expecting new developments today in the case of two Utah state employees who allegedly released a list of suspected illegal immigrants ready for deportation. CNN "American Morning's" anchor, John Roberts, spoke with Utah's attorney general about this so-called hit list. Not exactly a steppingstone or better dialogue on a very controversial topic, right, John? JOHN ROBERTS, CNN ANCHOR: Very much the way Utah's Attorney General Mark Shurtleff put it. Now, the attorney general, we should point out, Kyra, does not even have the names yet of those two individuals who have been placed on leave nor does he know what involvement they might have had in the release of this list, but it was the names of 1300 people reported to be illegal immigrants. All sorts of personal information.

This was names, addresses, phone numbers, in some cases, even pregnancy due dates. And Shurtleff said that this was not a black list. This was, indeed, a hit list. He compared it to the hit list that was put up by the Nazis (ph) during World War II against the Jews. And he said, this is something that just can't be part of the dialogue in the state of Utah. He's not sure what charges these people might face, the ones responsible for releasing the list, but I asked him potentially this morning what they could be facing. Here's what he told me.

(BEGIN VIDEO CLIP)

MARK SHURTLEFF, UTAH ATTORNEY GENERAL: It's a little early. I don't want to speculate exactly what the charges or what the crimes might be, but we're talking about -- particularly when it comes to some of the medical information on the list, as you mentioned, pregnancy dates on women, children's names and so forth that it could involve federal HIPAA laws, which at certain extent are family-level type crimes. There are certain punishments in place for state employees who do breach confidentiality and trust. People have to have confidence trust in their government.

(END VIDEO CLIP)

PHILLIPS: And I think that's an interesting point, confidence in the government, because whether you're illegal or not, there's an expectation of privacy that we all have, John.

ROBERTS: Certainly. And that's something that shared by people on both ends of the political spectrum, whether they'd be liberal or whether they'd be conservative. And it's interesting to point out, too, Kyra, that the governor of the state of Utah, Gary Herbert, is going to be having an immigration forum tomorrow, at which they were supposed to discuss whether Utah should adopt an Arizona-type of law when it came to illegal immigration. Now, it seems to -- this incident seems to have totally changed the tone of the debate in the way that it's going to be framed.

Here's what Shurtleff was told me about that he said that the list has been condemned universally, including by people who are strong, right-wing conservatives. It has gotten everyone involved coming to the table to say this is not the way we do things. Let's put the hate, the implied and outright racism aside. So, this meeting tomorrow is going to take on an entirely different tone than people thought that it was going to be because there just seems to be a shared outrage among everybody that this list got out there.

Whether or not these people are illegal or not is beside the point. It's just universally accepted (ph) that you just don't put this type of information out there because it's resulting in people being threatened. Some of the people on this list getting phone call saying, you're in the country illegally. Get out or we're coming to get you and just not the way things are done.

PHILLIPS: We'll definitely follow the investigation. John, thanks.

It's called the Homeland Security Department, but what "The Washington Post" found out probably won't make you sleep any better at night. We'll have that story in just a moment.

(COMMERCIAL BREAK)

PHILLIPS: Day 91 in the Gulf oil disaster and a new potential glitch. There could be a leak in the capped off oil well. The government giving BP another 24 hours to test the integrity of that cap and it put on the well on Thursday.

"The Washington Post" reporting the Nation's Intelligence Community has grown so large that it's unwieldy and unmanageable. The two-year (ph) investigation also determined that no one knows how much the intelligence gathering is even costing. The Post says 33 building complexes for top secret Intel (ph) worker under construction or have been built since 9/11. Found an estimated 854,000 people hold top secret security clearances.

Secretary of State Hillary Clinton announced a $7.5 billion aid package for Pakistan that's strictly for improvements to the country's water and power shortages and the economy. Clinton calls it a long- term investment in Pakistan's future.

Politics of change and the appeal to voter anger as the midterm elections approach, the tea party movement takes a hit. And a mystery candidate takes the stage. Take a closer look.

(COMMERCIAL BREAK)

PHILLIPS: Tempests in a tea party. The movement has long face criticisms of racists under tones, but now, the outcry is exploding. A leader of one of the groups posted a blog about colored people and the national movement gives him the boot.

(BEGIN VIDEO CLIP)

DAVID WEBB, NATIONAL TEA PARTY FOUNDATION: We, in the last 24 hours, have expelled Tea Party Express and Mark Williams from the National Tea Party Federation because of the letter that he wrote, which he, I guess, may have considered satire, but which was clearly offensive. And that is what we do. Self-policing is the right and the responsibility of any movement or organization. I denounce any acts that I see many leaders do, and for Mr. Jealous to say that these elements when millions have been out there, represent the tea party is blatantly false, and they're simply playing the race card.

MARK WILLIAMS, TEA PARTY MEMBER: What I did was successful, and I'm glad it was successful. I'm sorry I had to go to those lengths to slap some sense into a lot of people who are so afraid of politically incorrect language that we can't get a conversation started.

(END VIDEO CLIP)

PHILLIPS: It definitely got a conversation started. And that's where we begin our conversation with a seasoned Washington reporter, David Brody, is a White House correspondent for the Christian Broadcasting Network. He joins us from Washington. So, David, considering Williams' actual role within the tea party combined with what he said, could this actually split the tea party movement?

DAVID BRODY, WHITE HOUSE CORRESPONDENT, CBN: You know, Kyra, I don't think it's going to split the tea party movement. I think what you have here is you have a lot of freelancing going on. I mean, look, I mean, you have someone from one of the tea party organizations on face the nation. You have some folks, you know, Dick Armey, and some other folks that are kind of representing the tea party, but at the end of the day, I've been around the country and I can tell you, I mean, this tea party movement is hodgepodge to the degree that there are all sorts of tea party groups out there, and that is part of the problem here.

There really is no organization, if you will. There are some bits and pieces of organization, but at the end of the day, it's kind of a hodgepodge situation. And this is part of the problem the tea party movement has going forward.

PHILLIPS: On the same note, though, you can't deny the fact that it has gained a lot more momentum than Dick Armey says that he even expected. And it's impacting both Democrats and Republicans in the way that they think.

BRODY: There's no doubt about it. And the reason it's gained momentum is because they've been able to stay on message, the economy, the economy, the economy., the top three issues, if you will This racist angle that is coming out really could be problematic for the tea party here because this is about to finding the narrative going forward. I mean, is the tea party going to be known as a bunch of great American patriots? That's how they see themselves.

And that right now is how the country is overall seeing the tea party or will this new narrative, this idea that there are racist lines of attack, if you will, within the tea party movement? Will that start to take hold? You know, the whole (INAUDIBLE) thing that we've been hearing a lot. That starts to take hold as well. I think there is a battle for the narrative of the tea party in the early infancy here, and I think that's something to watch out for.

PHILLIPS: We'll watch it. That's for sure. Also, big talk this weekend about the midterm elections. We've been talking about it this morning, and on ABC (ph) this week, Vice President Biden pretty much cast away comments that Democrats will suffer big losses in November midterm election.

Let's take a listen. (BEGIN VIDEO CLIP)

JOE BIDEN, VICE PRESIDENT OF THE UNITED STATES: I don't think the lost can be bad at all. I think we're going to shock the heck the out of everybody. I am absolutely confident when people take a look at what has happened since we've taken Office in November and comparing it to the alternative, we're going to be in very -- we're going to be in great shape.

(END VIDEO CLIP)

PHILLIPS: Ok. Let's talk about what we've observed since they've taken office.

BRODY: Right.

PHILLIPS: And you kind of wonder if he's living in a bubble. I mean, we've got a bad economy, we've got people out of work, we've got two wars going on, we have an oil disaster, and he says we're in great shape.

BRODY: Well, you know welcome to the spin cycle. I mean, look, I mean he's not playing spin the bottle, he's playing spin the story line. And this is what they are going to do.

You know, I mean, this is what the White House is going to do and conversely it's what the Republicans are going to do as well.

Kyra -- Kyra -- what I really thought was interesting there is this idea of that they're in essence, what are they doing here, they are running against George Bush's policy in 2010. They did it in 2008, they say they were going to look forward.

But here we are in 2010 and they are running against George Bush's policies and the reason they are doing that is because it could be a winning hand for them.

Again, when I say winning that doesn't mean that they meant -- they will keep control of the House, but they may keep their losses down for sure. And I think that's very important.

PHILLIPS: I love how you mentioned spin the bottle. You are taking us back to when we were kids. Now kids are sexting. That's where we've come from spin the bottle.

BRODY: That's right, did I lose -- did I lose the audience there? Did I lose them?

PHILLIPS: You didn't lose me, that's for sure and everybody in our age bracket.

BRODY: They're going, spin the what?

PHILLIPS: Yes exactly. Wait a minute.

Oh David, good talking to you. BRODY: It's my pleasure Kyra.

PHILLIPS: All right. You bet.

Well, we've all heard about the right to life debate, but what about the right to die on one's own terms?

Take a look at this billboard it's promoting the final exit, and it's drawing a different type of traffic. We'll see you on the other side of the break.

But first, this day in history, Apollo 11 went into orbit around the moon. It was 1969 and the entire world was watching and waiting to see whether the first manned mission to land on the moon would be successful.

Neil Armstrong and Buzz Aldrin and Michael Collins all aboard; it was just 24 hours later that Neil Armstrong took the very first step on the moon. It was July 20th.

(COMMERCIAL BREAK)

PHILLIPS: Well, if you thought Jack Kevorkian raised awareness and plenty of eyebrows, take a look along New Jersey's Route 22. This billboard erected late last month by a group called the Final Exit Network is getting plenty of attention and discussions.

The sign reads, "My life, my death, my choice." The group promotes the idea of giving terminally ill people the right to end their lives in compassionate fashion. But an informal sampling of passersby suggests they are not swayed.

Take a listen.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: it's not a good billboard. And I think they should take it down.

UNIDENTIFIED MALE: My life, my death, my choice. Yes, that's -- that's not a good message to be sending out to kids, I don't think so --

(END VIDEO CLIP)

PHILLIPS: Now, the Newark archdiocese has spoken out against the billboard and the Final Exit Network's message.

Tell us what you think about it. E-mail me, your reaction to the billboard and the ensuing controversy. We'll share some of your thoughts on this next hour right here in the NEWSROOM.

We're also going to bring you a bigger discussion on this story tomorrow.

Well, there's a lot going on this morning. Let's check in with our correspondents beginning with Jim Acosta in Washington -- Jim.

JIM ACOSTA, CNN CORRESPONDENT: Well Kyra, in an attempt to ease tensions with the NAACP, one Tea Party group throws another Tea Party group under the bus. I'll have details coming up.

REYNOLDS WOLF, AMS METEOROLOGIST: I'm Reynolds Wolf reporting from New Orleans. And over the past couple of days, we haven't seen any oil coming out of the well head of the DeepWater Horizon, but now there are reports of seepage. Coming up, we'll let you know what that could mean long term and short term here in the Gulf of Mexico.

JACQUI JERAS, AMS METEOROLOGIST: And I'm meteorologist, Jacqui Jeras, severe weather expected in the plains today. We're expecting really hot temperatures again across parts of the south and thunderstorms causing major delays at some of the airports. We'll let you know which one, coming up.

PHILLIPS: All right. Thanks, guys.

Do you know what your city pays for some of your top leaders? How does $380,000 sound? That's just for the City manager's assistant. You may not believe what some other officials in Bell, California are making.

In our next hour, we're going to talk with a member of the California legislature who says this is just plain wrong.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I told you it was a mess in here.

UNIDENTIFIED FEMALE: She should know. She did it.

UNIDENTIFIED FEMALE: You and you, pack your bags.

(END VIDEO CLIP)

PHILLIPS: Remember that classic tale, the Parent Trap, starring Lindsay Lohan? The 1998 film solidified Lohan as an up and coming actress. She was so sweet and innocent then, so free of scandal. The Disney darling now deemed a disaster.

We've watched her train wreck of a love life from Backstreet Boys' little brother Aaron Carter to her tumultuous tabloid love life with famed deejay Samantha Ronson then came all the run-ins with the law, from mug shots to tears in court.

It goes without saying that Lindsay Lohan has been an international headline-grabbing train wreck. Now the headline: jail bird. So while she sits behind bars with all her legal drama, we're wondering will it kill her career or jump start it.

CNN entertainment correspondent, Kareen Wynter takes a look.

(BEGIN VIDEOTAPE)

KAREEN WYNTER, CNN ENTERTAINMENT CORRESPONDENT: From courtroom meltdowns --

LINDSAY LOHAN, ACTRESS: I'm not taking this as a joke. My life --

WYNTER: -- to controversial photo shoots, Lindsay Lohan's life off screen has been anything but picture perfect. Now, slapped with rehab and a jail sentence for violating probation after a 2007 DUI.

UNIDENTIFIED MALE: -- the new legal bomb shell.

WYNTER: Many wonder if Lohan's once fast-tracked career can survive this latest crash. The director of Lohan's upcoming film "Inferno" says, don't write her off just yet.

MATTHEW WILDER, DIRECTOR, "INFERNO": There's so much untapped power there.

WYNTER: Matthew Wilder says once the smoke clears, Lohan's career will reignite.

WILDER: the people who are putting money into the movie redoubled their commitment and called the same day and said, we're on, we're doing this, we're not going to do it with anybody else.

WYNTER: But for now, that movie is on hold.

(on camera): How crucial for you as the director of this film that she gets ready to work when she's done with rehab?

WILDER: Just my knowledge of people who have gone through this kind of stuff is that's the thing you'll be thinking about while you are going through all of that stuff. You're going to want to get out and work and get into your life and not kind of stay on the side lines.

WYNTER: Besides Inferno, where Lohan plays '70s porn star Linda Lovelace, she is also attached to the thriller "Machete", that's for a September release.

But industry insiders say it will take a lot more than that for the troubled starlet to regain her status as a bankable actress.

MARVET BRITTO, THE BRITTO AGENCY: Insurance companies and studios don't want to hire liabilities. They want to hire assets. And right now, Lindsay is solely a liability.

WYNTER: Public relations and brand strategist Marvet Britto admits it only takes one hit to have Hollywood talking again, and PR guru, Howard Bragman agrees.

HOWARD BRAGMAN, HOLLYWOOD PUBLICIST: Her value as a working actor is not what it was a few years ago. But at the same time she is going to have to take interesting roles, get critical acclaim for them and then she can re-evolve.

WYNTER: "Mean Girls" may have put Lohan on the map but Brito cautions these days, there are plenty of young stars sinking their teeth into the competition.

BRITO: With the success of "Twilight" and other properties, there's a lot of talent out there. So for Lindsay, I think she really should step away, focus on what made her captivating and see if she can really bring some of those fans that she had -- seemingly loved her in the beginning and see if she can recapture that same shine.

WYNTER: Wilder predicts Lohan's portrayal of the late, infamous porn star will wow audiences and perhaps silence critics.

WILDTER: You will see it in every scene. If there is like anything good to all of these like all these horrors and all these troubles, I think it's that. I think those things in a horrible way they kind of make you a better artist.

WYNTER: And when you look at artists like Robert Downey Jr. and Mickey Rourke, who've made amazing comebacks despite their legal problems, Wilder says this hiatus for Lohan may actually be a good thing.

(END VIDEOTAPE)