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Economic Recovery Slows; New Orleans Revamped Levee System; Canadian Terror Suspect Former Idol Contestant; Millions of Pakistanis in Desperate Need of Lifesaving Aid; Eyes On Wall Street After GPD Numbers Show Less Economy Growth Than Expected; Toyota Recalls 1.3 Million Corolla and Corolla Matrix Vehicles; Stocks Rise on GDP Report; Former FEMA Boss Talks Katrina; Trapped Miners Send Video
Aired August 27, 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: Thanks, guys. And good morning, everybody. Here's what we're working on this morning.
Miners trapped deep in the earth, send messages of hope, even humor. Remarkable videotapes of the men who could spend the next several months buried a half mile down.
Five years since Hurricane Katrina and we're back in New Orleans. We're talking to the people. And hearing from the men who defined the government's catastrophic failure.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: If you look at that videotape closely as I tried to explain to people, you see me wince because I had literally come out of the specific meeting that I requested with the president to describe to him --
(END OF VIDEO CLIP)
PHILLIPS: Michael Brown, otherwise known as Brownie, was a punch line at jokes and the punching bag of an outraged nation. Today he's back in New Orleans making some surprising claims about those failed efforts.
And that musically young challenged man may have missed the cut on "Canadian Idol" but he'll be staying put for this role in an alleged terror plot.
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.
And we begin with breaking news. Just minutes ago the government confirmed what many of us are already feeling. The so-called recovery sputtering. The government figures show that growth in the second quarter was 1.6 percent.
That's a bit better than expected but still pretty anemic. And what's worse, the steep plunge from the -- or the 2.4 percent that had previously been estimated. So you take that disappointing news and you combine it with high unemployment and a sliding stock market, and you can actually see why more people are worried about a double-dip recession.
In fact, those concerns are so great that economists will be weighing every word this morning from Fed chairman Ben Bernanke.
Reality check. Ali Velshi, we hear these numbers.
ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: Yes --
PHILLIPS: And you know?
VELSHI: This one's a tough one.
PHILLIPS: Yes. How do you put this in perspective?
VELSHI: OK.
PHILLIPS: And what does it mean?
VELSHI: GDP. Gross Domestic Product. It's an internationally used measure of kind of everything that we produce. Everything of value. How much value does this economy produce from one quarter to the next? One group of three months to the next.
First of all, the number comes out once, then it gets revised again and it gets revised a third time. Then it gets revised a year later. So these numbers are always moving around.
We got the first estimate previously. And that said that between April 1st and June 30th the economy grew by 2.4 percent.
PHILLIPS: We were buying more, right? Well, you said we're buying cars --
(CROSSTALK)
VELSHI: Yes. We felt the economy doing better. Right.
PHILLIPS: We're buying appliances. We were -- OK.
VELSHI: Now we get this revision to that estimate. And it's lower. It's 1.6 percent. So it was 2.4 percent, now it's 1.6, which kind of confirms a lot of people have been feeling that things are not moving as fast as we thought they were.
Now 1.6 means 1.6 percent more than before. So it's growth. It's not that we're not growing.
PHILLIPS: But it's slow.
VELSHI: It's that we're growing slower, and do we think we've slowed down even more? That's what the worry is. So 1.6 percent growth doesn't say recession at all. But it does say that well, we thought we were moving along and we knew in the first quarter we were doing really, really well. Then the second quarter was less well. We don't want to start to see that pattern when we get less -- you know.
PHILLIPS: OK. But you have some good news. It doesn't say recession.
VELSHI: It does not say recession.
PHILLIPS: OK. There's the good news.
VELSHI: It doesn't say we've ground to a halt. It just says -- you said sputtering. I'm going to -- those are the kind of things we're going to be hearing.
Here's the difficulty. You and I talked a few times this week. We get mixed messages all week. We had jobless claims that were bad but better than we expected them to be. We got -- home sales that were worse than we expected them to be.
So hard to make sense of where this economy is going. What do you do when you don't know where something is going if you're making a decision to buy a car or a house? Put the money back in your pocket and you wait until things get cleared out.
PHILLIPS: So what kind of car did you drive when you were 16? You'll see where I'm going here?
VELSHI: I had a little convertible.
PHILLIPS: Some fancy sports car? I knew it.
VELSHI: A convertible, yes.
(CROSSTALK)
PHILLIPS: OK. So basically it used to be my little Ford Escort when I was losing the transmission like in second year?
VELSHI: Yes.
PHILLIPS: And then you're like speeding in your little convertible. So basically we're back at my Ford Escort.
VELSHI: We're back in your Ford Escort. That's an excellent way to look at it. That's right.
PHILLIPS: Thanks, Ali.
VELSHI: And we're holding on to that Ford Escort for a little while.
(LAUGHTER)
PHILLIPS: Yes. Boy, I was glad to get rid of that car. Let me tell you.
VELSHI: Yes.
PHILLIPS: All right. Thank you, Ali. VELSHI: See you.
PHILLIPS: All right, when Ben Bernanke speaks the business world will be listening and so will we, of course. And Ali, obviously. He'll keep us updated. We're going to monitor his comments in Wyoming. Ali will let us know everything we need to know.
Right, Ali? Thank you.
All right now from your financial well-being to the safety of your food. There are new developments today in the nationwide recall of tainted eggs. Federal investigators say that they found salmonella bacteria in chicken feed.
That contaminated feed was processed at a mill at Wright County Egg Company and then also given to chickens at Hillandale Farms. Now those are the companies at the center of this investigation.
Officials now say that this is the largest salmonella outbreak of its kind since tracking began in the mid 1970s.
Former President Jimmy Carter is on his way back to the U.S. with an American who had been in prison in North Korea. Carter won the release of Aijalon Mahli Gomes.
Gomes faced eight years hard labor for entering the country illegally and for with the North Koreans call a hostile act. No details on what that charge was.
North Korea says that Gomes was granted amnesty for humanitarian purposes. Carter and Gomes are expected to arrive at Boston's Logan Airport this afternoon.
All right, Hurricane Danielle now a category 4 storm. It's turning in the Atlantic with maximum sustained winds nearing 135 miles an hour. On Danielle's heels, Tropical Storm Earl. It could come as a hurricane by early tomorrow.
Reynolds Wolf, is that right?
REYNOLDS WOLF, AMS METEOROLOGIST: It is entirely possible. We are looking at --
PHILLIPS: Here on the fifth anniversary of Hurricane Katrina.
WOLF: I'm telling you what --
PHILLIPS: Why is this -- it's always this time of year.
WOLF: It really is. I mean it really is a hotbed especially in this part of the world for these storms.
(WEATHER REPORT)
WOLF: Let's send it back to you, Kyra.
PHILLIPS: All right, Reynolds. Thanks so much.
WOLF: You bet.
PHILLIPS: Well, it's been five years since Katrina's devastating storm roared into New Orleans. And these compelling pictures of an iconic American city submerged gripped the country in the summer of 2005.
Nearly 1800 people died. So many more were left homeless. And the utter failure of New Orleans levee system amplified that disaster. So the federal government has spent the past five years trying to fix what went wrong.
The Army Corps of Engineers is in the midst of a $14 billion project to build and rebuild New Orleans system of levees and pump stations for a promise as 100-year level of flood protection by next June.
Homeland security correspondent Jeanne Meserve live in New Orleans.
Jeanne, what are people saying about the new system? And -- of course, a lot of people saying why is it still taking this long?
JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: Well, Kyra, officials are saying that New Orleans is safer. That the levees are stronger. But many people who live near them just don't believe it.
(BEGIN VIDEOTAPE)
MESERVE (voice-over): The long road back from Hurricane Katrina has brought Sonja Hill here to one of the handful of houses rebuilt right where the industrial canal flood wall gave way.
SONJA HILL, NEW ORLEANS RESIDENT: Looking at the wall, I'm thinking, what if it breaks again? What if it breaks right here in front of the door and I'm inside with my kids? I don't feel safe right here if a hurricane comes through.
MESERVE: Sonja says she can't afford to live somewhere else. Boy Roy Arrigo doesn't want to move. His house is just a few hundred feet from where the 17th Street canal flood wall failed.
(On camera): This is the same kind of wall that failed.
ROY ARRIGO, NEW ORLEANS RESIDENT: Yes, it is, yes.
MESERVE: Is that scary?
ARRIGO: Yes, it is. And this is -- this is a fragile wall.
MESERVE (voice-over): Arrigo was angry at the Army Corps of Engineers and blames it for the destruction of the city.
ARRIGO: We see the work and we're told about all of the progress. But can we trust it? And to be quite honest, I don't think that we can.
MESERVE: In the genteelly neighborhood near the London Avenue canal breach, Willean Brown believes the engineering isn't what matters.
WILLEAN BROWN, NEW ORLEANS RESIDENT: It can be a little high as they want to. God has the power if he wants to tear down the wall whether it is low or high, 25 feet, 30 feet, he can knock it down with his power.
MESERVE: Her faith makes her feel safe here. Not her sister, Callie.
CALLIE BROWN, NEW ORLEANS RESIDENT: I have to give the government the benefit of the doubt. And that the wall is going to hold. I got to try. Doesn't mean it's going to work.
MESERVE: For Callie Brown and many others the shadow cast by the levees is long and dark.
(END VIDEOTAPE)
MESERVE: And Kyra, here's an indicator. Every single person we talked to said if a big storm is headed towards New Orleans, they are headed out of town.
Back to you.
PHILLIPS: Jeanne Meserve, live in New Orleans. Jeanne, thanks.
And when Hurricane Katrina turned across the southern tip of Florida it barely generated enough wind speed to qualify as a hurricane at all. But one abrupt shift in direction changed everything.
A one-hour CNN documentary follows Katrina's progression into a devastating category 5 hurricane and details the suffering of the people who were victimized by the storm's sudden fury.
That's tonight on CNN, 8:00 p.m. Eastern.
From a reality TV to terror suspect. He didn't make the cut for "Canadian Idol." Now he's headed to court as part of an alleged homegrown terror plot.
(COMMERCIAL BREAK)
PHILLIPS: At first Khurram Sayed Sher was a former contestant on Canada's version of "American Idol." Check it out.
(BEGIN VIDEO CLIP)
KHURAM SHER, TERRORIST SUSPECT (singing): When you become somebody else, round everyone else, you're watching your back --
(END VIDEO CLIP)
PHILLIPS: It was pretty brutal. Now the Canadian authorities are holding him as part of an alleged terror plot. Sher will now be moonwalking off stage and into court.
Canadian police have arrested two other men in connection with that case. They say the three suspects form ad terror cell and also possessed materials to make IEDs. Cops also believe that one of the suspects is a member of terror group linked to fighting in Afghanistan. Investigators made the arrest over concerns that the suspect would fund weapons to use against coalition troops.
Millions of Pakistanis are still in desperate need of lifesaving aid. They're still trapped by floods, catching waterborne diseases, and they're starving. It's the kind of story that just doesn't send our chief medical correspondent Dr. Sanjay Gupta packing. It's the kind of story that has him wanting to impact change.
Sanjay joins us now, live from the hardest-hi area there in the Sindh province. Sanjay, tell me what you've seen.
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Well, you know, there are so many numbers that have been thrown around for some time now, as you know. The number of dead, the number of displaced, the number of affected. What we find when we get on the ground her is the numbers really hardly matter, as you might guess. It's really about the people behind those numbers.
You have to look far. You go into these relief camps, and you hear about stories and suffering. Really, that are really hard to imagine. I found one family that just -- you have to hear this. Take a look.
(BEGIN VIDEOTAPE)
GUPTA (voice-over): A fighting chance here in Sindh, Pakistan. It is all they can hope for. Rehamt Chacher, a farmer, didn't get any warning when the floods came.
"We just ran," he says. Grabbed his wife, his kids, and he ran. They took all they could.
You're looking at it here. They are staggeringly poor, but they wanted a fighting chance. Escaping the flood, they thought they made it.
"She started to get a fever. She couldn't keep anything down. She had lots of belly pain."
She's talking about her 3-month-old daughter, Benezir (ph). A few days later, she describes the same exact thing happening to her son, two-year-old Wazira (ph).
GUPTA (on camera): They brought both Benezir (ph) and Wazira (ph) here, to Civil Hospital. Doctors right away knew that these children were sick. But with such limited resources, there was only so much they could do. Let's take a look.
GUPTA: You have two to three patients per bed in this hospital.
G.R. BOUK, DOCTOR, PAKISTAN CIVIL HOSPITAL: Yes.
GUPTA: Do you have enough beds, do you have enough resources? BOUK: No. There is no resources. Because of the huge in the Sukkur population, and there is some population from the Jacobabad and other, Kashmore.
GUPTA (voice-over): The problem, bad water. Everywhere. With not enough good clean water to go around, well, many, too many, have started to drink this. Millions. Diarrhea illness, cholera, dysentery, typhoid.
GUPTA (on camera): Some of children around here look very sick. You have two -- at least two children per bed, some on the floor. Are you going to run out of space eventually? There are hundreds of thousands of people out there.
BOUK: Yes.
GUPTA: What happens to them?
BOUK: At the moment, we can't do anything.
GUPTA: What are the chances this child is going to survive?
BOUK: I think 50.
GUPTA: Fifty-fifty.
BOUK: Fifty-fifty.
GUPTA (voice-over): Wazira (ph) and Benezir (ph) wouldn't get that fighting chance. This is their obituary. They didn't even make it to the hospital. Both children died on the way there. Two-year-old Wazira (ph) weighed just eight pounds. And three-month-old Benezir (ph), just two pounds.
GUPTA (on camera): It is OK. It is OK, buddy. So you can tell -- I don't know want her to cry. Here. It's OK.
See, her belly is very distended. That's the problem. It's hard. It doesn't really push in.
Give them some formula so she can keep some calories down. They give them medicine as well. Mainly for nausea. But really, no antibiotics, which is concerning. Because that's one of biggest problems here. People getting infections.
GUPTA (voice-over): Ulla and Rehamt are just two of the millions affected by these floods. This is the new normal. Living among dozens of strangers on mats. Incredible, unimaginable loss. Two children dead in just one week. But now their mission, to not lose another child. To save this child, Goodie (ph), who is already sick. She wants to give Goodie (ph) a fighting chance.
(END VIDEOTAPE)
GUPTA: I will tell you. It's worth pointing out that so many of the children, Kyra, even before this flood happened, were living on the edge. It's hard to get some of the most basic supplies into this part of the country and this part of the world.
When this flood happened, it just pushes some of these kids over the edge. They're really struggling now with things like clean water, as you saw there. They get some medicines sporadically, but also even food. You heard the weights of those children at the time of their death. You can't even imagine what that's like, but that's what's happening here right now. People talk about the flood, but this is all the collateral damage that's sure to be happening for some time to come, Kyra.
PHILLIPS: Sanjay -- I notice that you brought some formula there for the baby. Were you able to bring some supplies over with you? And also, as a doctor, especially coming from the States, have you been able to help these families in any way and tell them other things that they can do that maybe -- medical professional there hasn't been able to tell them?
GUPTA: A lot of it is about connecting the dots, Kyra. Sometimes we can do that as journalists, as you well know.
Let me give you a couple of examples. One is that there are a lot of manufacturing -- pharmaceutical manufacturing places in Pakistan. They make antibiotics, they make lots of different medications. But getting them to the people who need it the most sometimes is challenging just because of poor communication.
Water, you know, in a situation like this, obviously necessary. Clean water, non-contaminated water. Bottled water sometimes proves too cumbersome. So using things like purification tablets, setting up purification centers or little, even, machines within hospitals, those things can help.
Getting right kinds of foods. So, you talked about that formula. Specifically, you need a certain type of high-calorie diet, certain concentrations of protein and carbohydrates. This is just education that has been lacking for so long even before the floods here in Pakistan.
You can help with that sort of stuff, getting supplies, obviously, to this region, which is one of the hardest hit areas. But now we're hearing as well, Kyra, where we're headed next is a place where they're evacuating another up to a million people because these floods are still continuing in another part of the country. This is an ongoing situation.
PHILLIPS: Got it. Sanjay Gupta there in Pakistan for us. Sanjay, thanks so much.
Another bittersweet moment. Look at those babies suffering in Pakistan. Look at this. We finally got our first pictures of the miners that are trapped underground, 33 of them. They were able to send video up in addition to messages. still singing the national anthem, trying to tell their loved ones that they're surviving.
(COMMERCIAL BREAK) PHILIPS: Checking top stories. Former president Jimmy Carter on his way back to the US with an American who'd been detained in North Korea. The Boston resident had faced eight years hard labor for entering that country illegally.
American Airlines says it will appeal the FAA's proposed $24.2 million civil penalty. The agency says that the airline failed to conduct proper inspections of its mid-80 aircraft. The fine would be biggest in FAA history.
Second quarter GDP figures just out. The economy grew much less than first thought. We're going to check on the investors' reaction with the opening bell just moments away.
(COMMERCIAL BREAK)
PHILLIPS: All right, there's the opening bell. Lots of eyes on Wall Street after GDP numbers came out this morning. Yesterday, the Dow Jones Industrial Average was down about 74 points. And we'll see how I turns out today, if it gets any better.
Meanwhile, there's a new Toyota recall that we want to tell you about. The Japanese automaker is recalling some 1.3 million Corolla and Corolla Matrix vehicles made in the US and Canada. Model years are 2005 through 2008. Toyota says that there may be problems with the engine's electronic control unit that could cause the engine to stall. There have been three unconfirmed accidents related to that problem but, so far, no fatalities.
We have witnessed progress and pain in New Orleans since Hurricane Katrina left most of that city underwater. You will remember thousands of people fled NOLA back in 2005. But now it's regained more than three-quarters of its population. And a lot of these newcomers are adding fresh ideas and vibrancy to a city already full of culture and personality.
Up after the break, our John Roberts will take us for a look at this new boon town for entrepreneurs in our "A.M. Extra."
Also straight ahead, musician Harry Connick, Jr. calls New Orleans his home. He is among a group of celebrities that's been key in helping that city to recover. And he opens up to Larry King about that resilience.
(BEGIN VIDEO CLIP)
LARRY KING, CNN HOST, "LARRY KING LIVE": It's five years later. What do you see and feel when you are there, Harry? What is it like now?
HARRY CONNICK, JR., MUSICIAN/ACTOR: It is really exciting now. Things are really turning around. From what I can see, I think generally things are really improving. I think that New Orleans has a long way to go, but certainly if there were lessons to be learned from Hurricane Katrina, I think that the people here, the government, the citizens, everybody has learned those lessons and they seem to be moving along.
You couple that with the Super Bowl victory in February, and it really has a positive energy down here now. It is pretty exciting. Something I didn't think I would feel in five years. That's for sure.
(END VIDEO CLIP)
PHILLIPS: Now, let's take a look at all the entrepreneurs that have come to New Orleans and say that it has been worth it.
JOHN ROBERTS, CNN CORRESPONDENT: Kyra, in so many different ways, the city is coming back. And in some instances, better than it was prior to Hurricane Katrina. You know, the culture is vibrant. The jazz is back. The whole vibe feels pretty good for the most part.
And what was a wasteland in 2005 for a certain group of people has become a whole new land of opportunity. The land of the entrepreneur.
(BEGIN VIDEOTAPE)
ROBERT VITRANO, ENTREPRENEUR: After Katrina, it was kind of that, if not now, when question that everyone asked.
ROBERTS: For Rob Vitrano and Randy Crochet, the answer was creating a new type of pizza, even though neither had ever worked in the food industry.
RANDY CROCHET, ENTREPRENEUR: We wanted to find pizza which is notoriously the worse thing for you and flip it on its head and make it a part of a healthy lifestyle.
ROBERTS: Six months after the storm they opened Naked Pizza in a New Orleans neighborhood that had been flooded. And their business took off. This weekend, the fifth anniversary of Katrina, the first franchise will open. They're planning 300 worldwide. But they weren't alone in finding opportunity in New Orleans after the storm.
TIM WILLIAMSON, CO-FOUNDER, THE IDEA VILLAGE: When New Orleans became a start-up city after Katrina, everyone became an entrepreneur.
ROBERTS: Tim Williamson is the cofounder of the idea village, a non- profit organization that supports this new wave of entrepreneurs.
WILLIAMSON: There was a fear that New Orleans might never come back again. And I think everyone here at the end of the day believed in New Orleans and believed we wanted to bring the city back.
ROBERTS: The idea village's mantra -- trust your crazy ideas. Some of those include bayou brew iced tea, fell-good flip-flops, and Nola Couture.
CECILE HARDY, ENTREPRENEUR: The community is so supportive with people coming here from all over.
ROBERTS (on camera): Where many of these business renegades are coming to is in this building in the warehouse district, which has come known as "the intellectual property." For years it was a law firm, now a hub for new entrepreneurs.
ROBERTS (voice-over): Chris Schultz's company, launch-pad, leases work space to these start-ups, and 60 percent are from New Orleans while the other 40 percent are out of town.
ROBERTS (on camera): There is more than just giving them office space and bringing folks together, isn't it?
CHRIS SCHULTZ, LAUNCH PAD: Absolutely. This is a work opportunity, so one of the biggest challenges an entrepreneur faces when you are getting a business off the ground is having a sense of community and going through with other people.
JAMES LOGAN, ENTREPRENEUR: You'll talk to most of the people in this building and you'll see they're actually embracing more of New Orleans culture than their own. It just becomes part of you.
ROBERTS (voice-over): The environment for young entrepreneurs is completely different than before Katrina. Prior to the storm, New Orleans wasn't exactly a friendly place for start-ups.
SCHULTZ: Katrina shook it up for everybody. I'm not a New Orleans native but I was here pre-Katrina and I knew what the business environment was before Katrina and it is a very different place now.
ROBERTS: But is it enough to keep these newcomers in New Orleans? 504ward, a company that connects entrepreneurs with the local culture is doing just that.
JESSICA WHITE, EXECUTIVE DIRECTOR, 504WARD: We quickly earned that everyone else had talent attraction policies, which is more or less than advertising campaign -- we're clean and pretty, move here. No one was tackling talent retention. Once they're here, how do you get them to stick?
ROBERTS: 504ward connects new owners with community leaders. Some turn into mentor relationships, even job opportunities. Jessica White is hopeful that her generation will stick around.
WHITE: We are a very entrepreneurial demographic. We're hard- working. We want to create new things, which is perfect for the New Orleans environment. We've got creative spirit.
(END VIDEOTAPE)
ROBERTS: How vibrant is the entrepreneurial environment here? We should note that the number of startups in New Orleans surpasses the national level. It's king of an interesting irony of Hurricane Katrina, that the storm that so devastated the city has paved the way for new growth in a way that never could have been imagined prior to the storm. Kyra?
PHILLIPS: John Roberts in New Orleans. John, thanks so much.
And don't miss our one-hour CNN documentary that follows Katrina's progression into a devastating Category 5 hurricane and details the suffering of the people who were victimized by the storm's sudden fury. That's tonight on CNN, 8:00 p.m. Eastern.
(COMMERCIAL BREAK)
PHILLIPS: Checking top stories. Former president Jimmy Carter back on his way to the U.S. with an American who had been in prison in North Korea. Carter won the release of Aijalon Mahli Gomes. He faced eight years of hard labor for entering North Korea illegally in January.
Hurricane Danielle now a powerful Category 4 storm in the Atlantic. It is expected to lose steam over the weekend. Right behind Danielle is Tropical Storm Earl. Forecasters say Earl could become a hurricane by early tomorrow.
Former NASA chief Sean O'Keefe and his son Kevin have returned to Washington to recover from a plane crash. It happened earlier this month in Alaska. Five people died in that crash, including former senator Ted Stevens.
Glenn Beck. He's no stranger to controversy. As a matter of fact, he usually just takes it on with a lot of pride. But this controversy has insulted many people in the African-American community. We will tell you why.
(COMMERCIAL BREAK)
PHILLIPS: Former chairman of the Republican National Committee says that he understands the anger towards him. In an interview with "Atlantic Magazine," Ken Mehlman admits that he is gay and says he regrets backing a Bush-era ban on same-sex marriage. He says he's received both support and criticism from the gay community since he came out. Mehlman is now working on a California ballot initiative against Prop 8.
Conservative talk show host Glenn Beck is known for sparking controversy. And he's done it again. Beck has a "Restoring Honor" rally taking place tomorrow near the Lincoln Memorial. The exact date and place where Martin Luther King, Jr. made his historic "I have a dream" speech 47 years ago. Well, critics say that he's dishonoring King's legacy. Beck says he was unaware of the timing.
He said this on his radio show. Quote, "We are on the right side of history. We are on the side of individual freedoms and liberties and, dammit, we will reclaim the civil rights movement. We will take that movement because we are the people who did it in the first place."
Let's bring in CNN's Carol Costello. African-Americans saying are you kidding me? What an insult to MLK's message.
CAROL COSTELLO, CNN CORRESPONDENT: Yes, they are. It is basically because you remember Glenn Beck called President Obama a racist. Also, Sarah Palin is going to speak at this rally. And it wasn't so long ago she stood up for Dr. Laura with Dr. Laura's 'N' word rant on the radio that Dr. Laura, you know, eventually resigned over or left her radio show. Of course, the people on the other side, those that will attend the Beck rally, say it is not really about race. It is about restoring honor, and what they mean by that is fiscal responsibility. Limited government. Free market economy. Those are the things that they are going to be talking about at this rally.
Early this morning, Kyra, I talked to two people. Jenny Beth Martin, who is from the TEA Party Patriot. She's going to go to the rally along with 400 TEA Party members. I also talked to Michael Fontroy, George Mason professor. He also wrote the book "Republicans and The Black Vote." As you might expect, they have very different viewpoints on this rally. Listen.
(BEGIN VIDEO CLIP)
MICHAEL FAUNTROY, PROFESSOR, GEORGE MASON UNIVERSITY: Well, it's offensive because it's out of line with the facts. It's out of line with the truth. The reality is that conservative movement in America historically has always opposed expansion of civil rights for all kinds of people. Going back to Reconstruction and even beyond with regard to the slavery movement, and then, as we see during the 1960s with the civil rights movement.
So, from my perspective, there's no real -- there's no real evidence that Glenn Beck is serious about trying to bring people together. And to reclaim the civil rights movement, in my opinion, is really about trying to confuse the civil rights movement and to delegitimize it and in fact dishonor it.
COSTELLO: And, Jenny Beth, can you understand why some might think that this is insensitive, especially when Glenn Beck has called President Obama a racist. And I know Sarah Palin is going to speak at the rally, too. And, you know, she recently stood up for Dr. Laura -- Dr. Laura's repeated use of the N-word.
I mean, do you understand why this is offensive to some people.
JENNY BETH MARTIN, NATIONAL COORDINATOR, TEA PARTY PATRIOTS: I do not think that this is offensive. It's about Americans who care about this country regardless of political affiliation, regardless of skin color, who care about the country and want to restore honor to it. It's not about the color of the skin. It's about the content of the character.
COSTELLO: Do you expect many African-Americans to be in the rally, Jenny Beth?
MARTIN: I do. Last night when I was driving down the streets of Washington, D.C., I saw a car with some bumper stickers on it that kind of agreed with my philosophies and I hopped out to give the person my lapel pin and my business card. As it turned out, it was an African-American man. I had no idea when I hopped out the color of his skin. I just was saying, "Hey, I'm glad you're here." And there are people of all colors who will be here.
(END VIDEO CLIP) PHILLIPS: Carol, that's what will be interesting to see. Will we see African-Americans show up for that rally? I understand that Al Sharpton is also holding a march tomorrow in Washington, "Reclaim the Dream" march.
COSTELLO: Something he says he does every year. But it is especially important this year. Remember, Carol, Washington is a predominantly black city. So, there are plenty of African-Americans there to attend this rally. We will see if they do.
Another interesting note. Martin Luther King's niece, Alvita King, will also be speaking at the "Restore Honor" rally. I want to read you something she said on Glenn Beck's show. She says, "Beck's rally is not a political event, per se. Instead, it is designed to be a refreshing exercise of freedom of speech that's a chance to think about character -- both our character as a nation, and our character as individuals."
So, it will be interesting to see what she says to the crowd. Also, Glenn Beck is insisting no political signs be brought, no signs at all. He says that politics won't enter into the equation even though Sarah Palin is speaking at the rally.
PHILLIPS: So, another beer summit.
(LAUGHTER)
PHILLIPS: It should be interesting.
COSTELLO: No comment.
PHILLIPS: We will follow. Carol, thanks.
COSTELLO: We will.
PHILLIPS: Yes. Always.
All right. Here's one way to prove you are a family friendly candidate. Propose to your girlfriend during a debate. Exactly what Christopher Young did. The Democrats, a perennial (ph) candidate for mayor of Providence, Rhode Island.
The reaction in the blogosphere has been mixed. Some headlines calling it sweet; others -- a little awkward. You decide.
(BEGIN VIDEO CLIP)
CHRISTOPHER YOUNG (D), PROVIDENCE, RHODE ISLAND, MAYORAL CANDIDATE: What I want to say is that now is the time to rebuild anew -- now is the time to reach our potential. Now is the time for me as well to start anew and thank those who helped me throughout my life and love those who helped me throughout my life.
So I want to say to Carol, will you please marry me?
(END VIDEO CLIP) PHILLIPS: Well, he definitely is getting attention for it, isn't he? The proposal was to his long time girlfriend and campaign manager Carol Russo and by the way she said yes. This is the same guy who broke into song during an interview on a morning show, too.
Well, "You're doing a heck of a job, Brownie". In the aftermath of hurricane Katrina, those words came to symbolize the catastrophic failure of government and the thousands of people who had been seemingly forgotten. It's seems like Brownie has more to say.
The failed FEMA director now has a radio show.
(COMMERCIAL BREAK)
PHILLIPS: Well, we check the numbers now. Lots of eyes on Wall Street after GDP numbers came out this morning.
Patricia Wu at the New York Stock Exchange -- Patricia.
PATRICIA WU, CNN BUSINESS CORRESPONDENT: Well, Kyra, we are seeing a little bit of a bounce this morning. GDP is always a market mover because it's so comprehensive, the broadest snapshot of the economy.
So those stock futures popped early this morning and now it is sustaining the growth. We're still up and it is a sign of the times, though, Kyra, that 1.6 percent growth rate, which really is weak and says that the economy is pretty anemic, certainly not enough for job creation, yet the market is reacting positively.
So it shows that investors are really desperate for something positive. It is still growth, and it may slow some of the double-dip fears. Plus Wall Street had expected much worse, so that's why we're seeing this little bit of a rally.
And at the top of the hour, in about ten minutes, Fed Chief Ben Bernanke is set to make a major speech. It could move the markets as well, depending on what he says.
He's speaking in Wyoming at an annual meeting of central bankers. One analyst says that Bernanke's speech is a wild card. So though were up, it's just up fractionally because the market is taking a wait and see approach.
We'll check those numbers right now, the Dow is up 28 at 10,013, the NASDAQ up four, and the S&P up two -- Kyra.
PHILLIPS: Thanks, Patricia.
Five years ago today, Hurricane Katrina was closing in on the Gulf Coast and an entire region was on the brink of catastrophe without even knowing it. In fact, it took days for the true scope of the disaster to sink in, especially for the government officials in charge.
They seemed oblivious to the suffering of people, hungry, thirsty, and seemingly forgotten. And who can forget that moment when President Bush actually gave kudos to FEMA Director Michael Brown, the man who became the symbol of the government's catastrophic failure.
Well, guess what, he's back in New Orleans for the anniversary. Why? He has a radio show in Denver and he's taking it on the road. Are you kidding me? Do new Orleanians really care what this failed FEMA director has to say on his broadcast? Well, he's still defending himself.
(BEGIN VIDEO CLIP)
MICHAEL BROWN, FORMER FEMA DIRECTOR: As I've said in speeches all over the world, that one of the fatal mistakes I made was not making it clear that indeed things aren't moving as quickly as they need to move. When I'm executing mission assignments to ask the Department of Defense don't go do something, that shouldn't take three or four days, it should take hours.
And you're right, had I -- had I said that at the time, I would have you know, gotten the old hook and pulled off the stage anyway, but the truth would have been out and I think that's a fatal mistake.
(END VIDEO CLIP)
PHILLIPS: Well, if you are interested, you can tune in to Brownie's "The Michael Brown Show" on Denver's news radio, 850 KOA.
Here's what we're following in the next hour of the CNN NEWSROOM. Let's start with CNN's Poppy Harlow. Hey, Poppy.
POPPY HARLOW, CNNMONEY.COM: Hey, looking a lot closer at that GDP number. This is really economist-speak but what we want to show you, what we're going to show you at the top of the hour is how real Americans across this country are feeling these numbers in their everyday life.
You'll hear from them in their own words straight ahead.
REYNOLDS WOLF, CNN METEOROLOGIST: And we are following the strongest storm on the planet, Hurricane Danielle with winds of 135 miles per hour, gusts of up to 160 miles per hour. Coming up, we're going to let you know where the storm is headed and how it may affect us. That's moments away.
PHILLIPS: All right, thanks, guys.
Also coming up, a no-nonsense military man took the reins in the wake of hurricane Katrina.
We are talking to retired lieutenant, General Russell Honore about lessons learned.
Winning with Facebook and Twitter, a 21-year-old uses social media to earn a seat in the Oklahoma State House of Representatives. You'll meet her live in the next hour of CNN NEWSROOM.
(COMMERCIAL BREAK) PHILLIPS: Home video from nearly half a mile underground. One of the trapped Chilean miners takes pictures of the men, the only light coming from his mining helmet. Despite their confinement, the men seemed to be in good humor and optimistic they'll get out safely.
One man says to another, well, you're sleeping on a box spring bed. He is really laid out on a pile of rocks. Another man says to his family, be calm, we're going to get you out of here.
But they'll have a long wait for that rescue, three or four months.
CNN's Karl Penhaul joins us on the phone outside the mine in northern Chile.
KARL PENHAUL, CNN INTERNATIONAL CORRESPONDENT (via telephone): Well, certainly Kyra, those things like this, this new video that is really keeping the families going. It also seems to be keeping the miners going. That handy cam was sent down by rescue workers in through the bore hole and emerged again from the bowels of the earth after nightfall last night.
Family members reacted with tears but they were also joyful to see their loved ones, even though they said that many of them had lost a good deal of weight. But as you say, those miners in that video, what they really seem to be trying to do is to show that they are strong, to show that they are optimistic, to show that they're in mentally good shape to carry on and to wait and be patient until they get out of there.
One of the miners at one stage sends a message to all the people, all of the rescue workers and all the family on the surface, and he said, I want to thank you for your courage and for not abandoning us, and at that point, all the miners break into applause.
Now, as you mention, not much light down there, but it does seem that the miners have been able to power the lanterns on their helmets with some kind of batteries there, and so they do have some little light.
When you see the camera pointed in some of the men's faces, though, they seem to be dazzled by those lights, possibly an indication that they have been living in darkness for much of the time.
And then what one of the miners also said is that we have had the great fortune down here that we have electricians. We have mechanics, and we have machine operators. And it really is the fact that they have a number of people with different skill sets there that they attribute the fact that they have been able to survive for so long and get by, and they end there.
The miner turns to the camera and says, on three, boys, and at that point, they all break into the Chilean national anthem -- Kyra.
PHILLIPS: It is really remarkable to see these pictures and to hear from them, and it leads to the question, Karl, because there's been different reports on a number of news networks, that they do know this could take until December until they get out, yet I'm not hearing from you that they know for sure that this could take up to four months. Have you been able to clarify what these guys really know about their rescue?
PENHAUL: I have been very clear and the health minister has been very clear with me on that. What he said is that in a conversation earlier this week, the President this week gave them a not-before date, and that not-before date is September the 18th, and he also went on to say, and, certainly, we will have you out by Christmas Day.
But what he is leaving is a big gap of around three months in the middle and that's the gray area. That's what the miners don't know. They don't know in that three-month period between September the 18th and Christmas day how long it will take and that's because the health minister said they don't know if they're psychologically tough enough still to take the blow of knowing that they could be down 9there for three, possibly four months, Kyra.
PHILLIPS: Got it. All right. Well, Karl Penhaul, I know you're not leaving this story and you will continue to update us. Karl, thanks so much.
