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How the U.S. is Helping in Pakistan; Survivor's Call after Colombia Crash; China Reeling After New Mudslides Hit Southwest; Obama Administration Considering Easing Travel Restrictions to Cuba; Hip Hop Star Wyclef Jean Waiting To Find Out If He Can Run for President of Haiti; Blagojevich's Hung Jury; Cops: Man Faked Death to Beat Charges
Aired August 18, 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: Good morning, everyone.
Two characters bigger than life and looming large in this morning's headlines. We've got updates on the fates of radio host Dr. Laura and former Illinois Governor Rod Blagojevich.
First up, remember this rant from the "Dr. Laura Show"?
(BEGIN VIDEO CLIP)
DR. LAURA SCHLESSINGER, HOST, "THE DR. LAURA SHOW": I didn't spew out the (EXPLETIVE DELETED) word.
UNIDENTIFIED FEMALE: You said (EXPLETIVE DELETED).
SCHLESSINGER: Right. I said that's what you hear --
UNIDENTIFIED FEMALE: Everybody heard it.
SCHLESSINGER: Yes, they did.
UNIDENTIFIED FEMALE: I hope everybody heard it. So makes it --
SCHLESSINGER: They did and I'll say it again.
UNIDENTIFIED FEMALE: -- OK for you to say the word?
SCHLESSINGER: (EXPLETIVE DELETED) is what you hear on HB --
UNIDENTIFIED FEMALE: So what makes it --
SCHLESSINGER: Why don't you let me finish a sentence?
UNIDENTIFIED FEMALE: OK.
(END OF VIDEO CLIP)
PHILLIPS: Well, today the doctor is out. Schlessinger drops the bombshell on CNN.
(BEGIN VIDEO CLIP) SCHLESSINGER: Well, I'm here to say that my contract is up for my radio show at the end of the year. And I've made the decision not to do radio anymore. The reason is I want to regain my First Amendment rights.
(END OF VIDEO CLIP)
PHILLIPS: Dr. Laura steps down. Rod Blagojevich lashes out. A hung jury returns only one guilty verdict in his corruption trial.
(BEGIN VIDEO CLIP)
ROD BLAGOJEVICH, FORMER GOVERNOR OF ILLINOIS: I want the people of Illinois to know I did not lie to the FBI. I have told the truth from the very beginning. This is a persecution.
(END OF VIDEO CLIP)
PHILLIPS: All right. It's 9:00 a.m. on the East Coast, 6:00 a.m. out West. I'm Kyra Phillips. And you're live in the CNN NEWSROOM.
Let's begin in Chicago and the corruption trial of former Governor Rod Blagojevich. Jurors have returned a verdict on only one count. Finding him guilty of lying to the FBI. They deadlocked on the other 23 counts of his corruption trial.
Prosecutor Patrick Fitzgerald had barely heard the verdict before he vowed to retry him. A defiant Blagojevich is railing against that threat.
(BEGIN VIDEO CLIP)
BLAGOJEVICH: Notwithstanding the fact that the government threw everything but the kitchen sink at me that on every count except for one, and every charge except for one, they could not prove that I did anything wrong, that I did break -- that I did break any laws.
We have police officers who are being gunned down on the streets. We have children who can't play in front of their homes in the summertime because they might get gunned down.
And we have a prosecutor who is wasted and wants to spend tens of millions of dollars of taxpayer money to keep persecuting me, persecuting my family, take me away from my little girls as well as take my home away from us.
(END OF VIDEO CLIP)
PHILLIPS: Jurors say that the outcome of the trial is not really vindication of his guilt but rather the product of a stalemate. They say a single juror refused to budge and blocked his conviction on other counts.
(BEGIN VIDEO CLIP)
ERIK SARNELLO, JUROR IN BLAGOJEVICH TRIAL: When you listen to a phone call, and you know people would say that supports his guilt, and she would say that supports his -- you know, the innocence, the not guilty side, just -- such different views that would just -- that's the way she saw it.
(END OF VIDEO CLIP)
PHILLIPS: But when it comes to the world of colorful politics and politicians, there may be few places like Chicago and even fewer characters like Rod Blagojevich.
Now at the bottom of the hour, a veteran reporter and political watchdog shares his thoughts on the spectacle and substance of Blago's trial.
She used the "N" word, ignited a national firestorm, and now Dr. Laura Schlessinger says she's ending her show and her broadcasting career. She made the bombshell announcement on CNN suggesting that she was unfairly targeted for her on-air use of the offensive word.
(BEGIN VIDEO CLIP)
SCHLESSINGER: I want to regain my First Amendment rights. I want to be able to say what's on my mind and in my heart, and what I think is helpful and useful without somebody getting angry, some special interest group deciding this is a time to silence a voice dissent and attack affiliates and attack sponsors.
I'm sort of done with that. I'm not retiring. I am not quitting. I feel energized actually. Stronger and freer to say the things that I believe need to be said --for people in this country.
JOHN RIDLEY, FOUNDING EDITOR, THATMINORITYTHING.COM: The big reaction for me is when she talks about her First Amendment rights being trampled. You know, the First Amendment -- a lot of people say this all the time. It pertains to the government impeding freedom of religion, freedom of speech. It has nothing to do with what I feel like, if you want to protest to things like that.
No one is impeding her First Amendment rights. If she wants to retire that's fine. But to say that for some reason because someone disagrees with her, that she is being maligned or in some way shoved off the airways, to me is absurd.
You know, that's her idea of apology to victimize herself.
(END OF VIDEO CLIP)
PHILLIPS: Schlessinger has been on the radio for more than 30 years. She says she now plans to focus more on the Internet with her Web site.
So if they move the Islamic center and mosque farther away from Ground Zero, maybe that would tamp down the fury. We could find out pretty soon.
Governor David Paterson plans to meet with the developer to talk about an alternate site. A TV station in New York City says that Paterson might offer state land for their cultural and religious center. Land farther than two blocks from the World Trade Center site.
So far the developer is sticking with the current plan and slammed politicians using the controversy to try and score points.
(BEGIN VIDEO CLIP)
SHARIF EL-GAMAL, ISLAMIC CENTER DEVELOPER: We are nowhere near the World Trade Center site. It's a really sad day for America when our politicians choose to look at a constitutional right and use that as basis for their elections.
(END OF VIDEO CLIP)
PHILLIPS: A senior Republican strategist told CNN that GOP candidates are being encouraged to bring up the mosque issue as much as possible.
Well, today will be the first of what will be many court dates for a South Carolina woman accused of murder. Shaquan Duley allegedly suffocated her two little boys, 1 and 2 years old. Put the bodies in the car and pushed it into a river.
Investigators say that Duley didn't have a job or a husband and couldn't take her own mom's criticism anymore. Apparently Duley's mom had gotten on her for not taking good care of those children.
Can't help but think of Susan Smith when you hear that story. Just too many similarities. South Carolina mom who supposedly wants to be free, a story that didn't add up, two little boys found in a car in a body of water.
Next hour we talk with the man who put Susan Smith in prison. It's the case he just can't escape.
Twenty million people in Pakistan are now desperate for aid. But the U.N. says it has less than half the money it needs to help flood victims. Former Pakistani prime minister thinks that global donors don't trust the government. So he wants to set up an independent coalition to distribute aid.
Something needs to be done soon, more than 1400 people have died and there are fears of a second wave of death from waterborne diseases.
Pakistan is more than a humanitarian crisis. It's got the potential to become a security crisis. The floods could threaten the stability of a nation that's a key ally in the war on terror.
CNN's Barbara Starr joins me from the Pentagon.
So, Barbara, what's the U.S. doing to do -- what is the U.S. doing to help?
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Kyra, there is some aid flowing in but it is a trickle. When you look at it right now, enough aid to help tens of thousands of people, perhaps 20 million need help right now as these floodwaters continue to rise.
The U.S. is sending some assistance -- pardon me -- some assistance, according to the State Department. About $90 million in aid and other assistance has flown into Pakistan. They have helped evacuate with U.S. military helicopters, about 5,000 people and just over 500,000 pounds of relief supplies have been delivered.
But just consider this. If there are 20 million displaced, also close to a million homes destroyed, millions of dollars each day needed in Pakistan just for food and clean water. There is a long way to go and a lot of concern that this crisis, as you say, is only going to get worse and could destabilize an already fragile government in Pakistan -- Kyra.
PHILLIPS: Fragile indeed. And there are so much concern about the Taliban taking advantage and bonding with all these victims. And we want t see the U.S., even U.S. troops, getting involved and giving a positive boost to the U.S. image.
STARR: Well, you know, you -- you've outlined exactly what the dilemma is right now. The U.S. wants to help but Pakistan is very leery and continues to be leery of having a foreign military face on this aid effort.
You know, the people there are not always that friendly to the United States. And if they see that their own government is unable to help them, the Pakistani government fears they could become even more destabilized and they don't want to see that concerns the Taliban could move in and try and fill the void.
All of these things in a huge mix right now and as long as this crisis goes on, the Pakistani military diverted from the counterterrorism fight against the Taliban and the al Qaeda -- Kyra.
PHILLIPS: Barbara Starr at the Pentagon. Barbara, thanks.
So we've told you how the U.S. military is going to the aid of Pakistan or Pakistani flood victims. Here is how you can help. Just go to our Web site CNN.com/impact. On the "Impact Your World' homepage. We've got a link to 20 charities that are responding to this crisis now.
Pray for me. Simple message left on voice mail from a pregnant passenger after her plane plummeted from the sky and split into pieces.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Miss Cynthia, it's Carolina Bellino. Can you send some prayers from church? Our plane crashed at 1:45 p.m. Right now (INAUDIBLE). I'm fine, but you know I'm pregnant so they got to be careful with me.
(END OF VIDEO CLIP)
PHILLIPS: Hear from the woman who missed that call right after this. (COMMERCIAL BREAK)
PHILLIPS: Passenger plane plummets from the Colombian skies and smashed in half on impact. One person died, but among the 130 survivors, a couple from Georgia -- the wife pregnant. She made a call home in the moment after the crash but got sent to voicemail.
WSB's (INAUDIBLE) talked to the woman who missed that call.
(BEGIN VIDEOTAPE)
UNIDENTIFIED REPORTER: As Colombian investigators were still marveling that only one passenger died in this crash in Flowery Branch at 7:38 in the morning, Cynthia Herndon's cell phone started ringing. An unfamiliar area code.
CYNTHIA HERNDON, CHESTNUT MOUNTAIN CHURCH: So I chose not to answer. But of course, it went to voicemail.
UNIDENTIFIED REPORTER: It was a frantic message from fellow church member Carolina Bellino. She and her husband David were on the aircraft.
BELLINO: Miss Cynthia, it's Carolina Bellino. Can you send some prayers from church? Our plane crashed at 1:45 p.m. Right now (INAUDIBLE). I'm fine, but you know I'm pregnant so they got to be careful with me.
HERNDON: I truly was speechless. Just simply beyond words. I was frozen in my shoes. Just to hear the panic in her voice, knowing the distress that she had just come through.
UNIDENTIFIED REPORTER: Herndon says Bellino has only been pregnant a short time. Facebook messages indicate she has broken ribs. The injuries to David, worse. He is being moved to a Bogota hospital.
UNIDENTIFIED MALE: The most that we've heard was that he has a back injury. We don't know how severe. But we think both of them are in relatively good shape.
BELLINO: Pray for us. Really. And thank you. (INAUDIBLE) but you have to pray for us. Thank you.
HERNDON: Absolutely amazing. Amazing.
(END OF VIDEO CLIP)
PHILLIPS: Scanning our "Morning Passport." Let's start in China. At least 67 people are missing after new mudslides at the southwestern area. China is still reeling after another mudslide hit the northwest state 10 days ago killing more than 1200 people.
The Obama administration is considering easing travel restrictions to Cuba. The move would leave the embargo pretty much as it is, but would provide more opportunities for American students and researchers to visit Cuba. US hip hop star Wyclef Jean will have to wait until Friday to find out if he can run for president of Haiti. The country's electoral commission delayed the decision on who it'll allowed to run in November's election. The board, which was supposed to publish the final list yesterday, says the eligibility of several candidates still needed to be checked.
"Say what?" Next time your teen asks that question, maybe it's because they really couldn't hear you. More teens have hearing problems than ever before. We've got the study telling us why.
(COMMERCIAL BREAK)
PHILLIPS: Checking top stories. Federal prosecutors say they will retry former Illinois governor Rod Blagojevich on corruption charges. The jury fell one vote short of convicting him of trying to sell Barack Obama's former senate seat, but they did find him guilty of lying to the FBI.
GM is recalling nearly a quarter million SUVs for a seat belt problem. The models involved, the Chevrolet Traverse, GMC Acadia, Buick Enclave, and Saturn Outlook. Folding down the second row seats can damage the rear seat belt buckles and they may not latch properly.
When your teen is not hearing you, it may not be selective hearing. New research shows that one in five teens has some degree of hearing loss now. The reason isn't exactly clear, but the findings point to the rise of portable music players and the use of those earbuds.
This morning, we're asking you to e-mail us your best idea. How do we convince teens to actually turn the music down? Next hour we're going to talk to an expert, and I'll read some of your ideas.
Hospital stays can put you in debt. But we found one hospital working to reduce costs without reducing care. We're going on show you how administrators in Utah did it.
(COMMERCIAL BREAK)
PHILLIPS: Most of us have experienced this. Mind-boggling hospital prices, and they're getting away with it. However, this morning, CNN's senior medical correspondent, Elizabeth Cohen, shows us one hospital that's trying to do just the opposite.
(BEGIN VIDEOTAPE)
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: We're here at Intermountain Medical Center in Murray, Utah where Haley Nelson is about to have a baby. How's the labor going?
HALEY NELSON, PATIENT: It's going well.
COHEN: That's good. Any pains yet?
NELSON: No. We're good to go.
COHEN: Good. The epidural kicked in?
NELSON: Yes.
COHEN: OK. Well, we're going to catch up with you in a bit.
I want to say something that's going to sound a little bit crass. But how Haley has this baby affects my pocketbook and yours, too. Let me explain.
I'm here at Intermountain with Dr. Brent James, who's the chief quality officer. It looks like Haley's doing well in there.
BRENT JAMES, CHIEF QUALITY OFFICER, INTERMOUNTAIN MEDICAL CENTER: Very well. I think in about an hour, we'll have another citizen of the state of Utah.
COHEN: Here at Intermountain, you are very focused on not wasting money. So can you take me on a little tour of the hospital, show me how you do it?
JAMES: I'd be delighted.
COHEN: You found that you had you a lot of CT scans that were unnecessary, wasting money. How much money did you save when you stopped doing repetitive scans?
JAMES: We dropped the total number by about 20 percent. It would have been measured in the tens of millions of dollars. And it's not just CT scans. It is other imaging exams.
COHEN: And here's another way Intermountain saves money. And I'll tell you, it's so much cuter than an MRI. Here at this hospital, two out of every ten babies are born via caesarean section. However, the national average at hospitals around the country is that three out of every ten babies are born by c-section.
Now, you might think OK, one extra baby by c-section, what's the difference? Well, a c-section costs about $2,000 more than a vaginal birth. If do you the math, if every hospital in the country had statistics like this hospital, the nation would save about a billion dollars.
So by instituting all of the changes to get rid of waste, how much money are you saving?
JAMES: We estimate that we're saving a minimum of about $150 million per year.
COHEN: That's a lot of money. Why can't all hospitals do this?
JAMES: Frankly, they can.
COHEN: I've got to tell you, it makes me a little bit nervous when I hear that hospitals are trying to save money, because I want you to spend money on me when I'm sick. You're saving all this money, but are you delivering good care? JAMES: It turns out that in almost all circumstances, better care is cheaper care.
COHEN: How can better care be cheaper care?
JAMES: Well, you avoid the complications, so you don't have to pay for the complication. We have a great way of saying it. The best patient outcome at the lowest necessary cost.
COHEN: OK, so Dr. James, I'm going to go check on Haley now.
JAMES: Wonderful.
COHEN: Congratulations, Haley
NELSON: Thank you.
COHEN: She's beautiful.
NELSON: Thank you. We think so, too.
COHEN: She was not born by c-section.
NELSON: No.
COHEN: She saved everyone a little bit of money.
NELSON: Yes. That's a good way to look at it.
(END VIDEOTAPE)
PHILLIPS: Elizabeth Cohen joining us now. Looking at all the babies,and I'm asking you, how do you handle all your kids?
COHEN: I don't have ten of them. I had better --
PHILLIPS: And on that thought --
COHEN: I don't have ten kids.
PHILLIPS: Yes, but you've got quiet a posse --
COHEN: Four, four.
PHILLIPS: Yes. All right, so why aren't more hospitals doing this?
COHEN: Right. It seem so obvious.
PHILLIPS: Right.
COHEN: Why can't you take these simple steps? The reason is that it's hard to change a large organization. So, it's hard to tell obstetricians, "Hey, we want you to do fewer c-sections." They practice the did way they practice, and getting them to change their ways is not as easy as it sounds. PHILLIPS: All right. Well, of course, we have to plug the book because it's doing so well. By the way, folks, her book is going into the second reprint. Is that it? Am I saying that properly?
COHEN: Second printing, right.
PHILLIPS: Printing, second printing, there you go. Being reprinted because it's doing so well. You talk about choosing the right hospital. You always have all these great things we need to know. We can find it in your book, but can you give us a little advice here on how we do that?
COHEN: Yes. There's some great websites, and I have them in the book, on how to choose a hospital. One with a low infection rate, one that does a lot of the things that that hospital in Utah does. There are several websites. One of them is "US News & World Report." They do a great job of rankings.
PHILLIPS: Oh, they do they schools, too, right? Ranking schools --
COHEN: They do schools, too, right. And several medical organizations have pointed me there and said they have good criteria and they know how to choose a hospital. So that's one place you can go.
PHILLIPS: All right. Good advice. Thanks, Elizabeth
COHEN: Thanks.
PHILLIPS: Well, booted from office and celebrating a homecoming that is bittersweet at best. A jury deadlocks on the corruption trial of former Illinois governor Rod Blagojevich. But his ordeal and the public spectacle, far from over. In just a few minutes, we're going to talk to a political watchdog about this interesting character, shall we say.
(COMMERCIAL BREAK)
PHILLIPS: Today is the last day that people in businesses affected by the Gulf oil disaster can file compensation claims with BP. And after today, people have to file with the Gulf Coast Claims Facility led by attorney Kenneth Feinberg. Feinberg is handling the $20 billion escrow account set up by BP. He's holding a public meeting this morning in Houma, Louisiana.
Gulf seafood suppliers say they still have a tough sell, even though the waters are open and products have been tested as safe. Things have changed at the shrimp processing plant in Bayou La Batre, Alabama. They're usually working round the clock this time of year, putting out 60,000 pounds of shrimp a day. They're only packing 20,000 pounds a day now. All of it from Texas.
(BEGIN VIDEO CLIP)
PETER BARBER, ALABAMA SEAFOOD ASSOCIATON: We've had major distributors call up some of our processors who have been working with them for years, generations. And they basically said we don't want Gulf product.
The dominant feeling right now, and it just kind of permeates everything, is fear. We're in uncharted waters, nobody knows what's going to happen.
(END VIDEO CLIP)
PHILLIPS: The National Resources Defense Council, an environmental watchdog group, is calling for an ongoing testing of Gulf seafood.
And it's been a tough summer on Wall Street. Stocks finally managed to stage a rally yesterday, though. Don't get too excited, because analysts say it could be a one-hit wonder. Stephanie Elam at the New York Stock Exchange. Stephanie, I -- what we need to do is we need to start buying some Gulf shrimp. We've got to help these folks out.
STEPHANIE ELAM, CNN CORRESPONDENT: There are a lot of people who would be very happy if that were to happen. Maybe take some trips down there, too. We could all do that. Help out the economy here in the US a little bit, Kyra.
As far as Wall Street goes, this way, it's got some jitters. Investors are combing through earnings and economic reports every day, looking for signs that the economic recovery is moving ahead. So far, though, there's no clear direction.
And even when we think we have some good news, it gets tempered a bit. Target's really a good example of this. The retailer posted a 14 percent jump in second-quarter earnings. Making more money sounds good, but Target is making money mainly because of cutting costs. Its sales did miss expectations, and food sales are doing well, but electronics, video games, movies, music, all of those are down.
It was a similar tune to what we heard yesterday, when we heard from Home Depot and also Walmart. So, taken all together, the clear sign that people still holding onto their pennies, not spending as much -- and Target shares down about 3 percent.
The Dow industrials, you just heard the bell there in the red right now, off 11 points at 10,390, Nasdaq down 2 about a quarter of a percent, S&P 500 as well, Kyra. So, hopefully, things will change, but right now, a little bit of red on the screen.
KYRA PHILLIPS, CNN ANCHOR: All right. Thanks, Steph.
For federal prosecutors, Rod Blagojevich is definitely the big fish that got away. He slipped the hook on 23 of 24 counts against him. Jurors deadlocking on those and returning a guilty verdict on line to the FBI. How Blagojevich calls it a vindication? At the very least, it' surprised opportunity for a man who loves the media attention.
Heck, even a winter jog seemed to be staged for the cameras. Big hair, grand gestures, larger-than-life rhetoric. After all, one of the politician quotes a 19th century verse in his quest for poetic justice.
(BEGIN VIDEO CLIP)
ROD BLAGOJEVICH, FMR. GOVERNOR OF ILLINOIS: If you can keep your head when all above you are losing theirs and blaming it on you, if you can trust yourself when all men got you and make allowance for their doubting too. If you can wait and not be tired by waiting or being lied about, don't deal in lies or being hated. Don't give way to hating.
I'll leave you with this poem by Tennyson which goes like this. Though, we are not now the strength which in old days moved earth and heaven. That which we are, we are. One equal temper of heroic hearts made weak by time and by fate but strong in will to strive, to seek, to find and not to yield. Thank you.
(END VIDEO CLIP)
PHILLIPS: Hmmm. Renaissance man? How about master of manipulation? One thing is a safe bet. We'll be seeing a lot of Rod Blagojevich as the feds get ready for a new trial.
Andy Shaw had a front row seat at the Blagojevich media circus. He's the executive director of the Better Government Association and the former political reporter for WLS-TV. He joins me live from Chicago. Andy, I just -- I just had to play to keep wing in Tennyson because this guy, you know, so many people were saying how -- how did this happen? How can he only, you know, get one conviction out of so many? And it's because -- listen to him. He's just the master of BS.
ANDY SHAW, EXECUTIVE DIRECTOR, BETTER GOVERNMENT ASSN.: Kyra, you know, that brought back old memories because I covered him for most of those years and what that clip reminds me is that this man should have been an English teacher rather than a governor. He was a disgraceful and an awful governor. He basic -- he and his band of thugs hijacked Illinois government for seven years.
They perverted it and they subverted it. They turned Illinois into an ATM for their own campaign fund and their own private gain. Now all -- having said all of that, it apparently didn't reach the level of guilt beyond a reasonable doubt in the minds of 12 jurors on the 23 counts, but that doesn't change the fact that he disgraced Illinois government and we have to make a lot of changes here so that never ever happens again.
PHILLIPS: And the thing we should point out as people were saying, how could this happen? So many -- so many various counts. It was so obvious what he did, but yes, it could have been obvious what he was trying to do. He was attempting to do things. He never actually committed a crime, right?
SHAW: Several of the jurors said that on a couple of counts, it was 11-1 to convict. So, that means the prosecution put on a pretty good case. This was very complicated. The bar on some of these charges is quite high. And even though the law says that if you intend to do something, that's as bad as actually doing it.
I think at the end of the day, some of these jurors felt that because none of these schemes actually worked, they didn't succeed, he didn't sell the Senate seat, and he didn't personally do the shakedowns, he ordered them done by others. Because of that, a couple of jurors said that they were missing the smoking gun that actually proved guilt beyond a reasonable doubt.
Twelve of these -- all 12 of these jurors obviously would agree that this was disgusting, despicable behavior, and it seemed to be on the verge of illegality. But crossing that bar of beyond a reasonable doubt apparently wasn't possible for at least a couple of the jurors, but that hardly mix it a good day for Mr. Blagojevich. He's a convicted felon this morning, and he's facing a very difficult second trial.
PHILLIPS: And let's talk about that second trial. I mean, this is costing and will cost millions and millions of dollars. I mean, he's broke, right? He doesn't have a cent. So, is this worth it, and, you know, can the government win next time around?
SHAW: That's several questions in one. Let me say first off that I leave it in the hands of Pat Fitzgerald, at his prosecutorial staff to decide if it is worth it. They know the evidence. And as they said many times, what price can we put on good government? Having said that, we are a state that is bankrupt. Illinois is the worst state in the country or second worst. They're tied with California.
We're 12 or $13 billion in the red. So, the prospect of taxpayers shelling out $3 million, $4 million, $5 million or more for his defense team and that's what's going to happen because he's broke, that's hardly a pleasant thought for Illinois residents. But the system suggests that rightly that he's entitled to a defense. Lawyers have to be paid even at a low rate which they will be. So, we really have no choice.
And you know, I'd like to say that we don't need to spend $5 million, but the fact of the matter is I'll leave it in the hands of the prosecutors. If they feel that a message has to be set with the second case and prosecutions tend to be better the second time around, I say go for it because they know their case better than I do.
PHILLIPS: All right. Better second time around. Could we see some bigger names? Could we see a more interesting cast of characters come out and state their case against Rod Blagojevich?
SHAW: That's certainly possible. Remember, we were told all along that the White House Chief of Staff, Rahm Emanuel, the president's close friend and chief adviser, Valerie Jarrett, Congressman Jesse Jackson Jr. of Chicago, all three of them were allegedly coming to the stand and on the defense case. When the defense surprisingly rested without calling a single witness, those of us who wanted to see them testify were deprived of that.
Second time around, we could get those three. We could also get a man named Tony Resco, who's not well known to the national audience, but he is the alleged ringleader of this whole racketeering conspiracy that the government charged. He apparently put everybody in a room before they even got to Springfield in 2003 and hatched this plot by which they would make millions of dollars and then split it up after they were done with politics.
He was not called to the stand because he is sitting in a jail right now. The prosecution was afraid that he might say some things that would hurt their case even though he had the potential to help them. Remember, Mr. Resco is the man who helped President Obama get a house on the south side of Chicago at a discount price some years ago. So, if he takes the stand, who knows what happens. It could be much more interesting
PHILLIPS: We've talked about Resco before on this newscast. That's for sure. Andy Shaw, always good to see you. Appreciate you joining us.
SHAW: My pleasure, Kyra. Hope to talk to you again soon.
PHILLIPS: All right. We're going to head cross-country now. And this morning, we're going to start in Salem, Massachusetts. This man is under arrest accused of trying to beat a traffic violation by faking his own death.
Michael Rosen showed up in person to hand in a death certificate. Too bad it was printed on the wrong paper with the wrong kind of seal and a misspelling. Now, he's looking at forgery and counterfeiting charges.
Moving along to Austin, Texas, police say they got a suspected arsonist after he bragged about the crime on Facebook. An elderly woman's apartment was set on fire after she complained about party noise. David Delgado's Facebook update about that party. This is what he wrote. "Had an awesome time. Did what I had to do. Old people nag."
All right. Let's go to Raleigh, North Carolina, where a sheriff's deputy was trapped in a car for three hours under, get this, swarm of bees, 5,000, as a matter of fact. Those heavy bees got loose when the truck carrying them just broke down. Technicians removed most of the bees using smoke, brush and a box. Then the deputy slowly drove away.
Sarah Palin, some say that she's changed the face of politics. Will she have you changing the channel? We're going to look ahead to Palin's new reality show and the primetime popularity test that she faces.
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PHILLIPS: Let's check out this on the scene in the Phoenix area yesterday. Folks there were battling dust clouds being stirred up by pretty fierce winds. Jacqui Jeras standing by in the Weather Center to tell us a little bit more. These can actually get dangerous, right?
JACQUI JERAS, AMS METEOROLOGIST: Yes. They were nasty. I mean, they had up to three inches of rainfall. Chandler got hit really hard. Thousands of people were without power at one point last night, and I think a few hundred still this morning. So, the nasty gusts from the thunderstorms then can kick up that dust and cause major visibility issues that we saw there in that video.
PHILLIPS: What else do we got going on?
JERAS: We got quite a few big weather headlines today. We want to start out by showing you what's been going on across parts of the mid- Atlantic states, and this has been the big story this morning with flood issues across the Delmarva down towards Washington, D.C. as well as in the Baltimore. We got the second area of cluster of thunderstorms moving through the Appalachians that were bringing some flood issues, and we're concerned that they could make their way here into the mid Atlantic if they hold together.
And we're going to have you on more roads that become closed and covered with water. So, use a lot of caution travelling today. Philadelphia hasn't been getting much, but when that second wave comes through, you got a better shot of seeing some heavier rain as we head into the afternoon hours. Flood watches and warnings are in effect from Baltimore stretching down through the Appalachians and into Eastern Kentucky.
And then we also have another area that we're concerned about for flooding, too. And that's across parts of Louisiana and lower Mississippi River Valley. And that's due to the remnants of tropical depression number five. Yes. It's still sitting there and just spinning and all of that moisture bringing down that heavy rain.
In fact, we can see a good three to five inches in this area today. So, lots of roadways covered there today as well. As we take a look at the big picture, this is going to be the focus for all the active weather today. We got the stationary boundary here, and it's going to kind of serve as the roadway basically for these little impulses or areas of low pressure to ride along and trigger those thunderstorms.
And then we have another area we'll be watching cross the upper Midwest for the risk of severe thunderstorms. Arizona, we saw the dust storm video. You can see those monsoonal thunderstorms this afternoon. Not expecting it hopefully to be quite as bad as it was yesterday. Also, some -- impressive video that we have for you out of Colorado, and this is for Monday. Storm chasers -- caught this on video.
This is what I would call a land spot probably rather than a tornado which is a nonsuper cell type of tornado or rotating column of air. And there you can see the debris (ph) cloud. It did the damage to a few outbuildings but nothing serious and nobody was injured with that. The best thing I can tell you about today is that the heat finally moving out of here with the exception of the Lone Star State, Kyra, still in the triple digits, though.
PHILLIPS: It's always hot in Texas, though. Thanks, Jacqui.
Let's go ahead and check our top stories now. Federal prosecutors say they will retry former Illinois governor, Rod Blagojevich, on corruption charges. A jury fell one vote short of convicting him of trying to sell Barack Obama's former Senate seat, but they did find him guilty of lying to the FBI. The talks show host, Dr. Laura Schlessinger, says her radio days are done. She will not renew her contract at the end of the year. Dr. Laura came under fire for using the "N" word in an on-air conversation with an African-American caller last week.
Vice President Joe Biden and other dignitaries will attend the funeral for former senator, Ted Stevens today in Anchorage, Alaska. Stevens was Alaska's Republican senator for four decades. He died last week in a plane crash.
An American soldier is dead and now the search is on for the international kick boxer accused of killing him.
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PHILLIPS: Topping our political ticker, primary results are in from two states. No anti-incumbent program in Washington, Senator Patty Murray, got the most votes in the non-partisan race. Republican Dino Rossi placed second and will get another shot at Murray in November's general election.
Another incumbent wins in Wyoming. First term Congresswoman, Cynthia Lummis easily took the GOP contest. She will face David Wendt, who ran unopposed in the Democratic primary.
Well, former Alaska Governor Sarah Palin faces a big prime time test of her popularity. In November the Republican and her family will debut in a reality show.
CNN's Kareen Wynter takes a closer look.
(BEGIN VIDEOTAPE)
SARAH PALIN, FORMER GOVERNOR OF ALASKA: Oh, my goodness.
KAREEN WYNTER, CNN CORRESPONDENT (voice-over): It's the kind of unscripted drama that only Sarah Palin can create.
PALIN: I'm honored though she thinks I'm a celebrity.
WYNTER: Americans just can't seem to get enough of this provocative political family. But that could all change when the former vice presidential candidate's reality show debuts this fall.
UNIDENTIFIED FEMALE: To be a part of the political process instead of becoming a celebrity so that you could --
UNIDENTIFIED FEMALE: -- and if that is the best you can do -- then good for you.
WYNTER: For Sarah Palin's Alaska, the cameras will follow their every move.
ROY SEKOFF, FOUNDING EDITOR, HUFFINGTON POST: A lot of it is sort of just watching this train wreck happen. Oh, my God, what are they going to do next? Oh, no not that. WYNTER: The Huffington Post founding editor, Roy Sekoff says the Palins are cashing in on their 15 minutes of fame.
What is it about the Palins, America's obsession? People just can't seem to get enough of this family.
SEKOFF: Well, I think that they are a soap opera come to life. I mean, the stuff that happens to this family, you couldn't put these together if you were a writer for "All My Children." You have the people who love her, you have the people who hate her but everybody is talking about her.
WYNTER: And that includes Levi Johnston, the Palin's most famous former son-in-law to be.
LEVI JOHNSTON, FORMER FIANCE OF BRISTOL PALIN: It's tough being in a relationship and a lot of money.
WYNTER: Sekoff says it's that limelight that's propelled the Palins' and Johnston to celebrity status. The headlines about Levi's and Bristol Palin's love child. Their two broken engagements, the buzz about Johnston shopping his own reality show.
Oh, and that music video that Johnston just appeared in that had tongues wagging because many said it poked fun at the Palins which Levi denied.
JOHNSTON: Watch the video it's going to be hot.
WYNTER: But when it comes to the media firestorm over this family, Sekoff says it's Palin's persona as a political lightning rod that's fuelling the public's appetite.
SEKOFF: Right now she's all about promoting the Sarah brand. There's a reason why Oprah booked her when her book came out. There's a reason why her book was the best seller and why Barbara Walters did a five-parter with her. People are interested in the Palins.
WYNTER: And it's that interest that's creating a gravy train for this family. Proving it pays to be a Palin.
(END VIDEOTAPE)
PHILLIPS: Well it's (INAUDIBLE) that Palin will make about $1 million an episode. Again that series starts this fall.
Bell, California could be called Bank California. We've got new info about this city that you just have to hear. About how some fat cat city employees were using the tiny poor town's coffers like it was their own personal piggy bank. The bell of outrage just won't stop ringing.
Right now, we want to talk about what happened 90 years ago today. Tennessee ratified the 19th Amendment. That was the final hurdle. Women have been voting ever since. And this gives us an excuse to play a song from Mary Poppins. Good old Mrs. Banks was ahead of her time, of course it was England. But who cares?
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PHILLIPS: Bell, California: small, poor, and a bottomless full of outrage and it's the ultimate case of government gone wild and average citizens gone broke. Listen to what's coming out of Bell now.
The L.A. Times reports that Bell handed out almost $900,000 in loans to its then city manager, his assistant and at least two city council members.
As if fat cat city manager Robert Rizzo wasn't getting enough cash in his deep pockets anyway, we now have learned he got another $160,000 in loans. I remember this is the guy who was making nearly $800,000 a year before people caught on and ran him out of town.
And don't forget his assistant. Angela Spaccia, he was raking in nearly $360,000 per year and she got nearly $200,000 in loans. And council members Oscar Hernandez and Luis Artiga (ph) borrowed $20,000 and neither reported it. Artiga says said he paid it back.
Well, these are the people who are making $100,000 per year for their quote "part time gigs". And as it turns out -- no surprise here really -- that some of the dozens of people who borrowed money from Bell over the years plopped it down for a new house.
I'm sure a lot of people in Bell struggling to make ends meet, people like this, wish that their employers were that generous. More proof that a small band of takers treated this town like their own personal ATM account, where the median income is around $40,000 a year in a state that's laying off teachers and cops and struggling with red ink.
I wonder how many more little bomb shells there are? Just like the new city manager told the L.A. Times, "I can't think of a reason to provide loans to a council member." Of course there wasn't a whole lot of reasoning going on in Bell, just greed and abuse of power. I can't wait to hear what happens with the attorney general's investigation. No telling what else Gerry Brown will find.
Well, there's a lot going on this morning. And we're going to have the latest in the next hour. The ultimate betrayal: a mother charged with killing her own children, this week's murders are eerily similar to the infamous case of Susan Smith. We're going to talk to the man who put her in prison.
Thirty mosques, 30 states: a pilgrimage of sorts for two Americans searching for the diversity of their Muslim religion. They'll share their experiences.
And a health concern that speaks volumes about the iPod generation: an alarming number of teens developing a hearing loss. Those stories and more in the next hour of CNN NEWSROOM.
So how do you convince teens to turn down the music? What warnings do you give your kids? Sound off about it. Head to CNN.com/Kyra. Let us know what you think. I'll try to read some of the responses coming up in the 10:00 hour.
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PHILLIPS: The search is on for the killer of a former marine in Thailand. He died in a bar fight in the resort city of Phuket. The suspect is a top British kick boxer, police are hunting for the man they call the kick boxing killer.
Reporter Kristie Lu (ph) has the story.
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KRISTIE LU, CNN CORRESPONDENT: This is British kick boxer Lee Aldhouse, wanted by Thai police for allegedly killing a U.S. Marine on the resort island, Phuket. Police say Aldhouse has been on the run since the early hours of Saturday morning.
Last Friday night he and American Marine Dashawn Longfellow had a fight inside this bar in Phuket, the popular Thai resort island. Both were trained kick boxers and adept in the local Muay Thai style which involves using the fists.
Police say when Longfellow returned to his hotel with his Thai girlfriend, Aldhouse came from behind and fatally stabbed him. Police are investigating this surveillance video from a 7-Eleven convenience store, which shows a man demanding knives from staff behind the counter. The clerk throws two knives to the floor. The man picks up knives off the floor and leaves the store.
Police tell CNN they believe the man in the video is Aldhouse. They have released this video of a knife which police found outside the hotel where the American was killed. Police have also sent a photo of Aldhouse and a copy of his passport to every immigration checkpoint in Thailand. They say there is a chance he might have escaped to neighboring countries by other small islands.
Twenty-three-year-old Longfellow, who grew up in Oklahoma served as a Marine in Iraq and Afghanistan. He was awarded the Purple Heart. His mother spoke to CNN affiliate KOCO before flying to Thailand to meet with police.
Longfellow had been Thailand for less than a month. Thai police are appealing to locals and tourists on the island of Phuket to come forward with information that might help them track down his killer.
(END VIDEOTAPE)
