Return to Transcripts main page

CNN Newsroom

Credit Card Changes; Half a Billion Eggs Recalled; Major Milestone in Iraq War; How Public Schools are Cutting Back; From an Eyesore to Art; Last U.S. Combat Brigade Out of Iraq; New Mideast Peace Push; WikiLeaks Founder Arrest Revoked

Aired August 21, 2010 - 11:00   ET

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

T.J. HOLMES, CNN ANCHOR: Hello, everybody, from the CNN Center in Atlanta, Georgia. This is CNN SATURDAY MORNING for this August the 21st. Good morning to you all. Coming up on the top of the hour, 11:00 on the East Coast.

Glad you could be here with us.

We are entering a new era in Iraq. The last US combat brigade now out of the country, remaining U.S. troops gear up for a major shift in their duties. A live report from Baghdad minutes away.

Also the escalating disaster in Pakistan, more flood victims are dying there and survivors still with filthy conditions and disease.

Also a salmonella scare intensifying here in the U.S. the recall of potentially tainted eggs is getting larger. We'll tell you which eggs are affected.

But the numbers are staggering now about how many eggs we're talking about. More than half a billion eggs have now been recalled due to a nationwide salmonella scare. Hundreds of people have gotten sick as a result of these contaminated eggs. If you're hitting the grocery store, this is what you need to know.

Cook your eggs thoroughly, no matter what. But also, the key here is that you need to make sure that anything that comes in contact with these eggs is washed thoroughly. We're talking about all utensils, anything that touches these eggs. Experts say you need to err on the side of caution.

(BEGIN VIDEO CLIP)

JEAN HALLORAN, DIRECTOR, FOOD & PRODUCT SAFETY CAMPAIGN: If you have any doubt about the eggs in your refrigerator you can bring them back for a refund if they're one of the brands that are listed in the recall. But as a general rule, if you hard boil them, you will kill any bacteria. So if you have any doubt, hard boil the eggs.

(END VIDEO CLIP)

HOLMES: Now, you heard her mention there, if you have any of the brands. Let's show them to you. The recall includes Albertsons, Farm Fresh, James Farms, Glenview, Kemps, Mountain Dairy, Ralphs, Boomsma, Lund and Pacific Coasta. Now we posted all of these, if you didn't get a good look at all of them here on the screen. We leave them up there for just a second longer.

But if you're not able to get a good look, we've posted all of this stuff for you, an easy place to find it. You can go to Twitter@TJHolmesCNN and also on Facebook@TJHolmesCNN as well. All of it will be there for you. An easy link and you can just read about it and compare and see if you have those eggs in your refrigerator.

We want to turn now to Pakistan: a rising death toll from three weeks now of flooding. Officials now say more than 1,500 people have been killed in that disaster; at least four million people homeless right now, 20 million in need of food, shelter and emergency care.

And with the filthy living conditions now there's the concern about the spread of disease. A number of them, diarrhea, measles, malaria, also acute respiratory infections are among the most serious threats.

Right now, our Sara Sidner is in the southern part of Pakistan where the floodwaters are high and the need is great.

(BEGIN VIDEOTAPE)

SARA SIDNER, CNN INTERNATIONAL CORRESPONDENT (voice-over): The flooding in Pakistan is still so expansive it's difficult to tell where the water ends and the sky begins. Search and rescue missions continue daily; this one, by the Pakistani military.

Suddenly on a tiny sliver of land, flood victims appear. They wade through floodwaters. Their eyes fixed on Pak Marine hovercraft as it arrives. These mostly women and children have been marooned here for two weeks now. They need everything, from food to medicines.

"Look at our children. They are sick. Where can we go? We can't go anywhere. There is water all around us."

Grandmother Bachul Kalhoro pleads, the other women in her clan chime in spilling out their many woes. The Pak Navy special services group try to accommodate with a small bit of supplies they have. It's not enough.

But the main thing on offer, a ride to safety, these villagers refused to take. They tell us they will not leave their land for fear their enemies in the neighboring village will snatch it. So the craft pushes off, a single flood victim aboard.

LT. CMDR. BADSHAH, PAKISTAN NAVY: Thinking that if they leave this area, they will not be allowed to come back. That's also an (INAUDIBLE) --

SIDNER (on camera): The Pak police say they've already rescued about 25,000 people on a 110 square kilometer meter area here in Sukkur. For those who are left behind, there isn't much help for them. (voice-over): In all, more than 200,000 people have fled or been rescued from this area. Some end up in government camps. Others have made their own shelters atop the official dam with little help fearing the predicted next wave of water officials say is rushing down from the north.

Sara Sidner, CNN, Sukkur, Pakistan.

(END VIDEOTAPE)

HOLMES: Well, hip-hop star Wyclef Jean will not be the next president of Haiti. Haiti's electoral council rejected his bid to run for the country's highest office. They didn't give an official reason but Wyclef says they ruled he was not a resident of the country.

(BEGIN VIDEO CLIP)

WYCLEF JEAN, HIP HOP ARTIST: There's -- there's no specific reason. Our lawyers went today, we went over all the paperwork and everything, we worked every piece of document, unclear. Right now I think it's -- the paperwork is in our Constitution. I think the Haitian Constitution, the laws that are on there, we -- we've listened and we've proved and we've shown every piece of paperwork.

So this has come to our party and to our group as a total shock.

(END VIDEO CLIP)

HOLMES: Well, it came out in later statement that, in fact, he didn't meet the five-year residency requirement. Now he said he does accept the committee's decision. He added that he will, however, continue to work for Haiti's renewal after the January earthquake.

Now, U.S. troops marked a milestone in the Iraq war. Last night service members at Camp Virginia in Kuwait held a flag ceremony officially recognizing the U.S. drawdown in Iraq. The last combat brigade crossed into Kuwait from Iraq this week. About 52,000 U.S. service members remain in Iraq to help train local forces.

Our Arwa Damon is in Baghdad for us this morning. And Arwa, we always appreciate and always need to give perspective and certainly you have it like none other. You've been covering this war since the very beginning, but, yes, a milestone of sorts to call this the last combat brigade to leave. But we have plenty of combat-ready forces that are still in country, no matter what you decide to call them now.

ARWA DAMON, CNN INTERNATIONAL CORRESPONDENT: Exactly, T.J. and I think we all really need to keep that in mind. This residual force of 50,000 may have a different mission in that they are being called advice-and-assist units. But this doesn't mean that Iraq can somehow miraculously become a safe place where the U.S. military is going to be able to cast aside its flak jackets and its weapons.

This is still a very dangerous place and that is something that the Iraqis are very aware of. When we speak with the U.S. military they do say that they feel that the Iraqi Security Forces with the residual force of 50,000 are capable of maintaining the current levels of violence.

But let's not forget that those current levels of violence are at an average around 300 to 400 Iraqis being killed a month. And for the Iraqi population, that's still not acceptable. Iraqis, especially in Baghdad, which is really the center of everything, when they go out into the streets they're still carrying with them that level of anxiety, those fears. They feel as if the future is still very uncertain -- T.J.

HOLMES: And on another thing here, Arwa. We are receiving the news one way in the U.S., where a lot of people are war weary and we're happy to see images and to hear that the last U.S. combat brigade was leaving Iraq. How is the news and maybe some of the images, how was it being greeted there by the Iraqis on the street?

DAMON: Well, Iraqis really aren't following this specific final stage of the drawdown as closely as people back home in the states are. And to be said as well is that Iraqis are incredibly war weary, too. They want nothing more than for all of this to be over and to return to a certain state of normalcy.

They do want democracy. They do want stability. They do want security. They do want economic prosperity. They do want a nation that they are proud of and one where they feel as if they can function without constantly being under threat.

This is still a country, T.J., where people who work for the government, or people who work for the Iraqi Security Forces or people who even worked with NGOs doing humanitarian efforts remain a target.

So Iraqis are just as war weary as the U.S., except for Iraq, this war is not over. It's not even close.

HOLMES: All right. Arwa Damon for us in Baghdad. Arwa, we appreciate you this morning. Thank you so much.

Meanwhile, to Iran now; Iran says it has started fueling its first nuclear power plant. State media says the plant in southern Iran will produce electricity but the U.S. and its allies are concerned it could be part of a secret program to build nuclear weapons.

The U.N.'s nuclear watchdog agency and officials from Russia are monitoring the transfer of fuel to the plant. Iran says it will take about two months for the reactor to start generating electricity, but Russian officials say it will likely take longer.

Well, the founder of the whistle-blower Web site WikiLeaks is wanted in Sweden right now. Julian Assange is accused of rape and molestation. Swedish officials say charges were filed -- are actually looking into filing charges, but first they need to talk to Julian Assange. He is, in fact, right now accused after a couple of people came forward.

Authorities aren't saying a whole lot beyond that. Assange though, however, is denying the charges. His posting on the WikiLeaks Twitter page reads the charges are without basis and deeply disturbing. WikiLeaks is the Web site that recently posted thousands of U.S. documents related to the war in Afghanistan.

Meanwhile, the President is enjoying a little down time right now. There he is. We're going to check in with the first family's vacation in Martha's Vineyard.

It's 11 minutes past the hour.

Stay here.

(COMMERCIAL BREAK)

HOLMES: Well, 13 minutes past the hour now.

President Obama and his family, taking a break from Washington for the next ten days at least -- headed to Martha's vineyard. There they are now. Second trip they have taken to Martha's Vineyard. You've seen him and his daughters. This is a simple visit to a book store that requires a lot of fanfare, with the President making the trip.

White House deputy press secretary Bill Burton says while the President plans to rest and recharge his batteries a bit, he, of course, will be working. The President, you never get a moment off literally, as President of the United States, but, hey, maybe a little down time.

Reynolds, how is the weather going to hold up for the President in Martha's Vineyard?

REYNOLDS WOLF, CNN METEOROLOGIST: Partly cloudy, 82 degrees. It's going to be nice.

HOLMES: Very nice.

WOLF: I would say much nicer than last week when he was in the Gulf Coast where the heat index felt like 100 degrees. This should be much, much nicer. And you know, I -- I see the Obamas out there eating ice cream quite a bit. They like ice cream.

HOLMES: They like ice cream. Don't they?

WOLF: And how can you not and when you're out on the coast it's going to be a great day for them. It's going to be good times and I tell you, I wish I could say the same for the rest of the nation because we've got heavy rain in the forecast. The intensity is also going to back. It's going to be a rough day in some places it sounds like.

HOLMES: A lot of places --

WOLF: Oh well, in terms of what you're going to see, or what you're going to feel it's a little bit of hodgepodge.

HOLMES: Right. WOLF: We're going to tackle all of it. Let's go right to it. Let's hop over here to the magic wall.

And as we do so, we're going to talk about first and foremost, the extreme heat. It was in place last weekend and voila, there it is again. Every state that you see that is shaded in pink or even the orange, you have your watches, your warnings. It's going to be intense. You've got the combination of extreme humidity. That with extreme temperatures is going to make it feel like it's anywhere from 105 to 115.

You have any plans on maybe going outside and cutting the grass? Don't do it today. Don't. Hold off. Wait. Just give it a little bit of time. If you do have to go outside, make sure that you do it pretty much in the early mornings or maybe a little late, late afternoon. But mid-afternoon around 3:00, 4:00, 5:00 is when it really is going to build so be advised.

From Houston and Dallas, back to New Orleans, even along parts of say Gulfport, Mississippi, it's going to be just a brutal time for you.

Now, we're also seeing the (INAUDIBLE) possibility of some heavy rain developing across parts of the Ohio Valley, the mid-Mississippi Valley and possibly into the Tennessee Valley also. We've got the moisture coming in. This frontal boundary driving up through is going to interact with that moisture. That combined with the daytime heating could give you some strong storms possibly some flash flooding in low-lying areas or places with poor drainage.

Now, back out to the west, it's not going to be an issue at all. In fact when you cross over the Rockies, this big dome of high pressure is going to give you just beautiful conditions in Denver back to Salt Lake City. Even out to the West Coast, in places like San Francisco, you're going to have a mixture of sunshine and clouds this morning. I can tell you in San Francisco, we have plenty of fog. See the shot from KGO -- beautiful. You can see the very top of the building there.

This kind of vanishes. It happens from say 3:00 in the afternoon, the fog will be gone, the breeze is going to kick in; beautiful afternoon out by Pier 59. If you're taking a walk down Presidio, temperatures mainly into the 50s.

That's a quick snapshot of your forecast. Again look out for the heavy rainfall and the extreme heat other than that, it should be picture perfect.

HOLMES: Always tricky out there.

WOLF: Yes.

HOLMES: -- the weather in San Francisco.

WOLF: National weather -- it's good stuff.

HOLMES: Ok. Reynolds, we appreciate you, as always, buddy.

We all know a lot of schools around the country have had to cut back. Things are tight for them, budgets are getting slashed left and right. So they're having to get a little creative, and Josh Levs is here to tell us -- kind of surprising even, some of the things they're getting rid of.

JOSH LEVS, CNN CORRESPONDENT: Yes, T.J. Charging for kindergarten, stopping bus service, even asking kids -- this isn't a joke -- to bring their own toilet paper. Seriously. Practical shopping, back-to-school shopping, rather, is not what it used to be.

I'm going to tell you how schools are different this year. That's coming right up.

(COMMERCIAL BREAK)

HOLMES: It's 20 past the hour now. Let's take a look at some of the stories that are making headlines.

After a two-year stall, direct peace talks between Israelis and Palestinian are set to resume. Both sides have agreed to sit down face-to-face next month in Washington. Negotiations broke off in 2008 after Israel's offensive in Gaza.

People will be gathering to mourn in South Carolina. Gathering to say good-bye to two toddlers whose mother is accused of killing them. Shaquan Duley is accused of suffocating her sons then strapping their bodies into car seats and sinking the car in the river.

Also, in Australia, a national election is right now just too close to call. More than half of the votes have been counted and the Labor Party of the incumbent prime minister is leading with 51 percent of the votes. The Liberal National Coalition has 49 percent -- could be days before the next leader of the country is determined.

We'll have more of the stories making headlines coming your way in about 20 minutes.

As we all know, a lot of kids right now have been returning to school. And when they get to school, what do they have -- bigger classrooms and fewer teachers. But those aren't the only changes in this economy. Some families are being asked to pick up the slack.

Our Josh Levs is here to explain what some parents, what some kids even, are being asked to provide what normally we just are used to getting in school.

LEVS: It's incredible -- it's amazing what has been changing. Let's first do some of this big picture stuff. I want to show you a map. I'm just going to give you a few examples of what has been changing at schools around the country.

In one St. Louis area school district, they had to stop buses. No buses anymore. You want to get your kids to school, you've got to drive them. Over in California, which we hear a lot about -- the Modesto city school district in California, the average class size in kindergarten through third grade was 20; it's up to 25 now. And one area in that region, Modesto, it's up to 34 in a class.

One more example for you: Queen Creek, Arizona, just near Phoenix. Parents now have to pay for kindergarten. You have to pay $200 a month to enroll kids in full-time kindergarten classes. You just want the half day; that one's still free.

These are just few examples of the things that are changing. And now let's take a look at this. Some ways that parents are being asked to start giving all of these supplies; things that you never saw coming. Certainly when we were kids it wasn't like this.

Take a look here. One of them, toilet paper. The "New York Times" put together this great list of what some cities out there are asking kids to bring to public schools. Honolulu, Hawaii school, asking people to bring their own toilet paper there. Plastic cutlery -- in Seattle, Washington, a school saying, "Kids, you want to eat at lunch? Please Bring your own plastic cutlery."

Castle Rock, Colorado ask some kids to bring their own printing paper; their own just basic white paper for anything they're going to be printing out. Paper plates and cups at Joshua, Texas schools. Let's do a couple more here: Nevada, Texas school, asking kids to bring their own construction paper.

These were the basics when we were in elementary school. You had your scissors, your glue, now you're being asked to bring things.

There's just a few more examples of things. Various schools around the country are now asking kids to be the ones to provide paper towels, garbage bags, tissues -- absolute basics. These are the new school supplies along with the book, notebooks, things you're used to having to get.

We want to hear from you because I think this says a lot about what's happening in the country. What your struggling are. What you have to get. And here's how you can reach me. You have my Facebook and Twitter pages, JoshLevsCNN -- we posted that a while ago. And T.J., I will tell you, a lot of people weighing in now with some other surprising things that they now have to provide for their own public schools.

HOLMES: They're asking, because the government isn't providing a whole lot of help these days, a lot of people will say.

LEVS: Yes. Well, it's true. I mean you had the stimulus money to help for a while. It did help prop up a lot of school, keep some educators working out there; but certainly a lot of that's dried up and gone away. The President just signed a bill, it's going to give $10 billion for the schools around the country. Supposed to help keep 140,000 educators working.

But still with all that, our folks at CNNMoney found experts and talked to them. They're saying year we might have 135,000 teachers fewer than last year. That's what's happening at schools in this country.

HOLMES: It's scary, what's happening in schools in the country. But some highlights out there, some people are doing some good work as well.

LEVS: That's right.

HOLMES: Josh, we appreciate you. Thanks so much.

LEVS: You got it. Thanks.

HOLMES: Well, Austin, Texas is a city that helped launch the careers of music legends like Janis Joplin and Stevie Ray Vaughan. CNN's Tom Foreman said it's also the city that turned an eye sore into art. He shows us in today's "Building up America".

(BEGIN VIDEOTAPE)

TOM FOREMAN, CNN CORRESPONDENT (voice-over): It is impossible to address the economy of Austin without noting the symphony of arts that flows through this town and the Long Center downtown is evidence of how a vibrant arts community can be good for residents and business, too.

For 40 years, the multi-purpose, aging Palmer Auditorium sat here. When the city decided to replace it in the '90s, the town was flush with dot-com money, a $125-million plan was developed. By 2002, however, many dot-coms were dot gone and the plan was, too. That's when the real ingenuity kicked in.

STAN HAAS, ARCHITECT: People were accustomed to coming here. They knew what this was.

CLIFF REDD, LONG CENTER FOR THE PERFORMING ARTS: It was so odd but yet it was also such a symbol for the city.

FOREMAN: Cliff Redd runs the center and Stan Haas was a key architect of its revival.

HAAS: So to give it a new life and a new place in people's hearts in Austin, it was a really seductive project for us.

FOREMAN: Unable to afford an entirely new facility, the city, like many homeowners, remodeled, really remodeled.

REDD: We began to investigate what's the idea of maybe taking the great bones of this building and making it even more than it was? So the "eureka moment" was finding a construction photo of this building in 1958. What it showed was this beautiful concrete perimeter ring beam.

FOREMAN: Stripping the old building down to its bones, they reused every piece they could to create a state of the art new performance center. A hidden concrete ring beam came into the light as a sweeping architectural element. Old weather-beaten roof tiles were converted into stylish, hip siding. Windows were made into decorative panels. Old light fixtures were rewired, reworked and re- hung for a retro splash. Five tons of steel were melted down and returned for re-use.

In all, 45 million pounds of debris was recycled and used again. The results are staggering. Not only did the Long Center open on time and on budget, but listen to how much they saved by using the old to build up the new.

HAAS: Typically, when we researched these across the country, the mind-numbing figure that stopped us was they're running about $1,100 a foot to build what we have. We were able to build this project for $278 a foot. So it becomes one of the most studied projects and an iconic example of Austin ingenuity at best.

FOREMAN: Now, that's a finale.

Tom Foreman, CNN, Austin.

(END VIDEOTAPE)

HOLMES: And we'll have more compelling stories of people going the extra mile to help communities in need; a special half hour "BUILDING UP AMERICA" 3:00 Eastern, 12:00 Pacific time today.

Well, a soldier just back from Iraq talking about the mission and what it felt like to be a member of the last combat brigade to leave Iraq.

That's coming up after the break. It's 27 minutes after the hour.

(COMMERCIAL BREAK)

HOLMES: While the last U.S. combat brigade now is out of Iraq, many troops headed back home. And Sergeant 1st Class Robert Lee returned to Washington State on Thursday. His wife Doris has been waiting for him.

I talked to the couple earlier this morning and got their reaction to this week's drawdown.

(BEGIN VIDEOTAPE)

HOLMES: Did you see this as a historic moment necessarily, or you just saw this as your husband was coming home?

DORIS LEE, HUSBAND JUST RETURNED FROM IRAQ: I saw it both ways, as a historic moment and as him coming home, also. And it was very exciting.

HOLMES: Now, Sergeant Lee, you tell me. I know you guys are always just looking forward to getting home, but how much of the moment grabbed you as well, that this was a significant, historical milestone moment for this whole war in Iraq? SGT. ROBERT LEE, JUST RETURNED HOME FROM IRAQ: Well I guess while we were doing our job there, it was just doing our job. But then I guess near the end, it was like, wow, we're really going to be the last combat brigade leaving here. And, wow, that is historic, that will be a part of history. So -- go ahead, sorry.

HOLMES: No. What does that mean to you now? And I guess you've been seeing a lot of the news coverage this week and you've probably been taken a bit aback by it. So now do you see it differently as you're back here and putting it in more perspective?

R. LEE: Well, I'm just proud to be a part of that Stryker Brigade. So it is a great moment.

HOLMES: Doris, how has it been for you over the past -- I think he was gone a year. How has it been for you the past year knowing that things were going to be drawing down? But how does it feel now knowing that it's a good chance he won't be called back to Iraq? At least that's the hope now, and that certainly wasn't the case for a lot of families over the past few years.

D. LEE: It's a blessing. It's a blessing to know that and to feel that way. But either way, I support my husband, his job, and the military.

HOLMES: You've been doing that for a long time. You have been supporting him for a long time. Do you feel a sense certainly of relief that he's home? But is there more relief now to at least have one war drawing down?

D. LEE: Yes, sir.

HOLMES: It didn't take -- we don't have to interpret that. We can hear the "Yes, sir," we can hear the joy in that voice.

I guess, Sergeant Lee, what's next for you? I mean, are there chances could you end up in Afghanistan, which is now ramping up now?

R. LEE: It is a possibility, because we do have a great fighting force in our Stryker Brigade. But the Army's trying to give us more dwell time. So it will be at least a year, maybe two, before my unit is called up to such a thing. But it is a possibility.

HOLMES: Is that comforting, at least, that you have -- and forgive the term here -- you have some downtime? I know that's your job, but knowing that you won't be back in a war zone, how comforting is that these days?

R. LEE: It is a comfort, but my unit is trained, and we're ready to do our jobs. But it is a comfort to be able to have some time at home.

(END VIDEOTAPE)

HOLMES: All right. And a promising step forward for U.S. efforts to get Israel and the Palestinian Authority to resume direct peace talks. Both sides have agreed to meet with President Obama at the beginning of next month in Washington, and then sit down for face-to-face negotiations.

The challenges for a peace deal are huge. The White House, though, optimistic.

Here now, CNN's Dan Lothian.

(BEGIN VIDEOTAPE)

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT (voice-over): The Obama administration is trying to seize to crucial window of opportunity, jump-starting the long-stalled Mideast peace talks and pushing for success within one year.

HILLARY CLINTON, SECRETARY OF STATE: These negotiations should take place without preconditions and be characterized by good faith and a commitment to their success.

LOTHIAN: Skeptics may see this as another drive down a dead-end road, but special Mideast envoy George Mitchell, a veteran of talks in Northern Ireland, says success requires patience.

GEORGE MITCHELL, SPECIAL U.S. ENVOY FOR THE MIDDLE EAST: In Northern Ireland, we had about 700 days of failure and one day of success.

LOTHIAN: The Obama administration has been prodding both sides for months. The president recently held separate Oval Office talks with Prime Minister Benjamin Netanyahu and President Mahmoud Abbas.

How to carve out borders for a Palestinian state and security guarantees for Israel are two key issues that remain unresolved. Looming over this fragile diplomatic effort, Iran's nuclear threat. "The New York Times" says the Obama administration has persuaded the Israelis that trouble with the Iranian nuclear program means it would take them at least a year if not more to develop a weapon.

At a briefing on Martha's Vineyard, John Brennan, who advises the president on national security issues, was asked about the report.

JOHN BRENNAN, U.S. DEPUTY NATIONAL SECURITY ADVISER: Clearly, we are very concerned about Iran's continued activity in this area, but again, I will leave the assessments sort of off the table at this point.

LOTHIAN: On the peace process, Brennan and other administration officials say there is a strong commitment by all parties to an enduring deal in the region, but Secretary Clinton warned, hurdles remain.

CLINTON: There have been difficulties in the past. There will be difficulties ahead. Without a doubt, we will hit more obstacles. LOTHIAN (on camera): President Mubarak of Egypt and King Abdullah of Jordan have also been invited to take part in those bilateral meetings and attend a dinner. They are two leaders, the administration says, who have played a critical role in pushing for Middle East peace.

Dan Lothian, CNN, Vineyard Haven.

(END VIDEOTAPE)

HOLMES: And severe weather is threatening certain parts of the country this afternoon. The forecast, also a check of the day's headlines, just ahead.

It's 36 minutes past the hour.

(COMMERCIAL BREAK)

HOLMES: Well, it has been a strange morning for Julian Assange. In just a matter of hours, the prosecutors have done an about-face in Sweden and now saying that the arrest has been revoked.

Julian Assange, the founder of the Web site WikiLeaks, which has leaked tens of thousands of secure and tens ever thousands of documents from the U.S. military, secret documents, put them on a Web site, the man that U.S. Pentagon officials had actually said may have blood on his hands because what he has sent out -- he's been a thorn in their side -- well, today prosecutors came out -- this was a matter of hours ago -- and said that, in fact, he was wanted. An arrest in absentia had been issued for him on the charge of rape and molestation.

Here we are, literally five hours later, and we have gotten a statement now from the Web site of the Swedish prosecutor that, in fact, I will just read to you saying, "The chief prosecutor has come to the decision that Julian Assange is not suspected of rape. Considering that, Assange is no longer arrested in absence."

That is from the prosecutor's office. At the same time, it was just a matter of hours ago that live here on our air, someone from that very same prosecutor's office said that they were looking for him, and that in fact they were looking for him on these charges, and that two people had come forward last night and said, in fact, he was -- they were accusing him of rape and molestation.

Our Atika Shubert has been on the line with us covering this story for us throughout the morning.

Atika, we are literally talking about a matter of five hours that this has turned around. What happened?

ATIKA SHUBERT, CNN INTERNATIONAL CORRESPONDENT: Well, the fact is, nobody really knows.

This is an incredible U-turn by the Swedish prosecutor's office. Quite clearly, they were very specific in saying earlier this morning that Julian Assange was charged with these counts of rape and molestation. Now that's all been completely dropped by the chief prosecutor, with no explanation whatsoever, and the chief prosecutor has said she will not be making any further statements today on the issue.

So nobody really knows what's happened. I mean, this is an incredible U-turn.

Certainly, WikiLeaks, at the beginning of the day, it's interesting to note that their Twitter postings they had put out at first brushed aside these allegations, saying this is just basically a huge distraction, then began to take the charges very seriously once it was confirmed by the Swedish prosecutor's office. Julian Assange put out a Twitter post saying that they, indeed, are baseless accusations. And now this.

And it certainly does seem to suggest what Assange has been saying all along. He's been saying these are some of the dirty tricks to undermine WikiLeaks. And certainly when you see these kind of about-face turns, it's hard to think otherwise.

HOLMES: It's very difficult to do so. And these -- and again, we have been talking to these prosecutors and had one directly here live on the air this morning, in fact saying, this is what happened, this is why we're looking for him. We're looking to talk to him. We're looking to bring him in. His arrest in absentia.

Has he come out yet? I mean, since the charges, at least it seems, are going to be not dismissed, I should say, but he's no longer wanted for arrest here, has he popped up somewhere? Do we have any idea where he is now?

SHUBERT: He hasn't popped up anywhere yet. We have seen these Twitter postings coming out, so clearly he's trying to get his side of the story out.

We have a friend of his, a colleague of his, Christian Hoffsmansen (ph), an Icelandic journalist, actually spoke on his behalf to other media, saying that he has spoken to Julian Assange, that he was still in Sweden and was hoping to contact the police about the issue. Now, we have not been able to independently confirm that. I do know that Christian Hoffsmansen (ph) is a colleague of Julian Assange's, has worked very closely with him. And so we're just going to have to wait and see what happens.

Now, this is all developing very quickly, and this statement really, literally, just came out just a short while ago from the prosecutor's office. So it's possible that Julian Assange is really still trying to figure out how to react to this incredible U-turn. Just this morning he was being charged, and now everything has been dropped.

HOLMES: And it was just this morning.

And to Atika's point a little earlier, that, in fact, we were getting several statements. And Atika, you were talking about the statement, and it seems that WikiLeaks, which, yes, he founded, but it's more than just this one man. They put out a statement saying that they were "deeply concerned about the seriousness of these allegations," and that "We, the people behind WikiLeaks, think highly of Julian. He has our support." But at the same time, they say "WikiLeaks will be continuing its regular operations."

And literally, this Twitter posting you're talking about from Julian Assange earlier literally was posted five hours ago saying the charges were without basis. This was almost immediately after the charges came to light.

So, Atika, I don't know where we're going to go from here. It has been five hours, a strange developing story throughout the day.

Atika, we appreciate you. If you get anything else, by all means, get back to us.

But, again, to our viewers, it has been, again, an odd five hours to see a man go from facing very serious allegations, the possibility of charges, an arrest in absentia, as they call it, has now been revoked, no longer wanted in Sweden on these charges.

We'll continue to keep an eye on this story.

(NEWSBREAK)

(COMMERCIAL BREAK)

Ten minutes until the top of the hour. Just 10 minutes away from Fredricka.

Welcome back.

FREDRICKA WHITFIELD, CNN ANCHOR: Hi. Thank you. I know, it's been a while.

HOLMES: It's been a minute (ph), but you look refreshed.

WHITFIELD: I missed you guys. Do I?

HOLMES: You do.

WHITFIELD: OK, good, because I don't feel refreshed.

HOLMES: You look well.

WHITFIELD: I've been globetrotting, but it's been great. It's been very interesting last month. Some work-related, some fun.

HOLMES: Well, you had some good --

(CROSSTALK)

WHITFIELD: Well, all of it fun, even though it was work. HOLMES: Even though you were working.

WHITFIELD: Yes.

But coming up noon Eastern hour, we've got a lot going on. Our legal guys, newlywed Richard Herman will be with us, along with Avery Friedman.

Did you know that?

HOLMES: I did not know he was getting --

WHITFIELD: He got married. He got married while I was away and I'm just learning it.

HOLMES: Please give him my best.

WHITFIELD: Yes. So we'll have some really nice photos if he allows us of his nuptials in Hawaii.

They're going to be talking about Roger Clemens. Yes, they're going to take a swing at that case, and whether this is the case that will lead to a conviction, you know, indictments, as a result of allegedly lying to the feds. And this as a result of his voluntary testimony on Capitol Hill.

What now for Roger Clemens?

And, of course, another favorite for our legal guys, former Illinois governor Rod Blagojevich. What now?

He was not talking during the trial. You know there was a hung jury. Will there be another trial? Should these prosecutors vie for yet another very expensive case to try to nail the former governor? However, he didn't testify, but he has been talking, even post-hung jury.

Will he take the stand if there is indeed another case that goes on trial?

HOLMES: And he was just one juror away from a conviction.

WHITFIELD: It was very close.

HOLMES: Yes.

WHITFIELD: But, you know, how smart is it or potentially dangerous is it to potentially try to taint the next jury pool by talking post-game?

HOLMES: Yes.

WHITFIELD: We'll see what happens. And we'll see if the prosecutors want to try for it again. It's been very expensive, and it would be expensive part deux as well.

HOLMES: Yes. You say this is a favorite for your legal guys?

WHITFIELD: Oh, yes. They love it.

HOLMES: They love it?

WHITFIELD: They will be sinking their teeth into it, and claws as well.

And then 2:00 Eastern hour, how much do you suppose you spend on a daily basis to just eat?

HOLMES: Per meal --

WHITFIELD: Whether it's going out or even at home.

HOLMES: It's a lot. It's actually a lot.

WHITFIELD: I know. It's sickening. Well, I don't think anybody can get away from that. I think I probably spend a lot, too.

So we're going to have a guest in the 2:00 Eastern hour who says you can do it for $1 a day -- to eat.

HOLMES: Not per meal? All day?

WHITFIELD: All day. He did it for 100 days.

HOLMES: All day?

WHITFIELD: He is going to join us. Yes, for 100 days. And he's maintained some of those frugal spending. He's not a real foodie, he's not crazy about food, but he knows he's got to eat it just to nourish. It's not a weight loss program.

HOLMES: Did he maintain his weight throughout this?

WHITFIELD: He did maintain his weight. So he didn't starve, and he's going to tell us how he did it.

HOLMES: OK. I've got to hear this one.

WHITFIELD: Yes. Yes. So that's 2:00 Eastern Time.

And then at 3:00, "Building up America." We're going to see a number of ways in which across the country people are trying to build up their cities, their states in very economical and ecological ways. That's 3:00 Eastern Time.

And then 4:00, who doesn't love going to the movies?

HOLMES: Love it.

WHITFIELD: We love it all the time.

How about, "The Switch"? Jennifer Aniston, she's back. Jason Bateman, people are saying this is really just a great role for him and they have great chemistry on the screen.

And we're going to have a movie expert critic along with us. And he is also going to talk about "Nanny McPhee Part Two."

Did you see part one?

HOLMES: I did not see it.

WHITFIELD: I didn't either, but part two, at least seeing the trailer, it does look really, really cute.

HOLMES: And what's "The Switch" one about? What is that about?

WHITFIELD: Oh, this is a lady in her early 30s. She wants to have a baby, but she doesn't have the significant other in her life. So she's getting creative in what has become the kind of -- it's a nontraditional way, but it's kind of become a traditional way in which to try to have a family these days.

And Jennifer Aniston and Jason Bateman make it oh so interesting and clever. We'll see if our movie critic loves it.

HOLMES: This is the second weekend in a row I had no idea what movie. Last weekend it was "Eat Pray Love."

WHITFIELD: Yes, Julia Roberts.

HOLMES: I didn't even know what that was about.

WHITFIELD: Well, you've got to get to the clicks. What's going on? Make a little time.

(CROSSTALK)

WHITFIELD: OK. I want to see that.

HOLMES: Yes.

WHITFIELD: That's confusing though, right?

HOLMES: It's very confusing.

WHITFIELD: Yes. Is it happening, are we in the future? What's going on? I haven't seen that either, so I'm in the same boat.

HOLMES: We'll talk afterwards.

WHITFIELD: Yes. I at least get to see the trailers thanks to our critics.

HOLMES: Fredricka, we'll see you in just a minute.

WHITFIELD: All right. Good to see you.

HOLMES: Seven minutes, to be precise. See you in a second. Meanwhile, the waters of course have long since receded, and a lot of the damage removed. But for many folks, what happened in New Orleans five years ago still brings them to tears. One family's emotional journey five years after Katrina.

(COMMERCIAL BREAK)

HOLMES: Five years now after Hurricane Katrina, the trauma and emotions many people felt still run pretty raw and deep. For the Woods family of Pontchartrain Park, New Orleans, seeing what they could have lost helping them cherish what they saved.

Here now, CNN's Soledad O'Brien with a preview of "New Orleans Rising."

(BEGIN VIDEOTAPE)

AUDREY WOODS, SURVIVED KATRINA: Then you press play.

SOLEDAD O'BRIEN, CNN SPECIAL CORRESPONDENT (voice-over): We sit down with Audrey and Melvin Woods in the house they rebuilt to show them footage of Pontchartrain Park after the Katrina flooding. They were joined by their children and grandchildren.

UNIDENTIFIED MALE: It went that high up?

UNIDENTIFIED FEMALE: Oh, my God.

WOODS: See, Mel? I didn't dream it was that high.

O'BRIEN: They are stunned by what they see.

WOODS: Wow. Wow. That's our house.

O'BRIEN: For the very first time, they're seeing their own house under water.

RHEA WOODS: Oh, God. Wow.

You know, you thought -- you knew it was high, but we never actually saw it. And to see it -- I had no idea. Just knowing -- just knowing how bad it was.

WAYNE WOODS: It never goes away. I think about how close we came to losing our parents and --

UNIDENTIFIED FEMALE: I don't see how we're sitting here. I don't see how we're sitting in the same house.

A. WOODS: That's our house.

O'BRIEN (on camera): Every child of yours is literally sobbing, and me, too and your grandchildren.

A. WOODS: Right.

O'BRIEN: And you're not crying.

A. WOODS: No.

O'BRIEN: Why not?

A. WOODS: Because we made it.

O'BRIEN (voice-over): Within a year, 74-year-old Audrey and 81- year-old Melvin were gutting their house.

UNIDENTIFIED MALE: They had on these white suits with white masks.

O'BRIEN (on camera): They're in their 70s.

UNIDENTIFIED MALE: Yes. And they're hauling out pieces of sheet rock. My father, with a cane carrying a piece of sheet rock out, and I remember them calling, saying, "Do you know what your parents are doing? They're gutting the house by themselves."

A. WOODS: Our loan closing statement.

O'BRIEN (voice-over): A record of the Woods' initial down payment, $465, was one of the few things in the house to survive the flooding. But when it came time to rebuild and refurnish their home, the projected price tag was staggering: over $300,000. It's a common tale in New Orleans.

The money offered to them by the Road Home, the federal program set up to help Katrina victims, coupled with their homeowners' insurance, was nowhere near enough. The Woods were forced to take out a loan for more than $120,000.

A. WOODS: And it's still tough, wondering how I'm going to repay that loan, because I know that I won't in my lifetime.

(END VIDEOTAPE)