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Big Storm Headed for Veracruz; "Plan B" Drill Reaches Chilean Miners; 911 Response to Fatal Home Invasion Questioned; Student Loan Debt Tops Credit Card Debt; Patient Claimed Debated Drug is Effective; Decision Day For Avastin; President Speaks on Elizabeth Warren; Reading Minds?; CNN Equals Politics Update
Aired September 17, 2010 - 13:00 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 to you all. I'm T.J. Holmes sitting in for Ali Velshi today. I'm joined right off the top with Chad Myers. We've got a storm. Carl, we thought this one was going to -- it got a little weak, but this is starting to pick up some steam once again.
CHAD MYERS, CNN METEOROLOGIST: Yes, and now it's on shore so it's going to lose steam. That's what happens when it blows dry air here. This is all desert, basically, Mexico.
But here is the scary part. Right there is the city of Veracruz, and it is under the southern part of the eye wall. Now, I know we always talk about this part of the eye wall coming on shore, blowing storm surge into -- this will have storm surge at 20 or 30 feet. The great news is, not very many people live right there, but there are going to be winds through Veracruz and through Boca del Rio, Boca Del Rio, meaning mouth of the river.
Here it is right here. This is my Google map of this town itself. The eye wall is up here, but the winds are blowing in this town of Veracruz, 711,000 people, plus another couple 100,000 down into Boca Del Rio, and all of this wind at 120 miles per hour, tearing this city apart right now.
This thing -- this storm Karl, made a slight jog to the left where it should have been up here another maybe 50 miles. It didn't do that. It is coming this way now, and as it comes on shore, that's the latest and greatest radar. We don't get many radars out of Mexico. But there it is right there. Hard to see, because I didn't put it on there. But that's the city that I just showed you, right under the southern eye wall.
HOLMES: How long are they going to be...
MYERS: Major.
HOLMES: ... under fire, if you will, of this storm? And how long before it moves out of there?
MYERS: Moving pretty fast. I would say that's probably an hour from now. Here's two hours from now. Here's three hours from now, and by that time the winds will be down to tropical storm force. But right now, through the entire city of Veracruz, winds over 100 miles per hour sustained.
HOLMES: How many people are we talking about?
MYERS: Seven hundred and eleven thousand.
HOLMES: All right. That's a major city.
MYERS: Yes, it is. And I can show you, too, on the satellite, kind of give you an idea of, really, what happened with this storm. There is the Yucatan Peninsula and Cancun. Something we haven't talked a lot about, and maybe -- maybe we will get to later on. There are an awful lot of oil production right through there. I mean, you talk about -- I don't know what -- 120 miles per hour, trying to keep an oil rig steady or whatever these pumping rigs, whatever. There may be some oil spilled in this bit right now with that -- I haven't seen any kind of oil prices doing any of this, but we always know by oil prices in the northern Gulf of Mexico. A lot of oil right there.
HOLMES: All right. Chad, appreciate it. We know you're keeping a close eye on this. And we've still got Igor and was it Julia hanging out there somewhere?
MYERS: Right.
HOLMES: We'll get into that stuff...
MYERS: We'll talk about that in a little bit.
HOLMES: All right, Chad. We appreciate you, buddy. We are going to move on to a story everybody has been keeping an eye on, really, for the past month or so now. It's this human drama, these miners in Chile.
Thirty-three miners have been trapped -- trapped -- now in this mine, underground for over a month now. They've been trapped since August 5. Well, we were told -- we were all told they wouldn't be able to get them out until maybe as late as Christmas. They were trying to move in all this new equipment and new drill to try to get these guys out, but it was going to take all this time.
Well, a breakthrough. One of the drills has made it down to where the miners are. That's good news, but still, it doesn't mean, necessarily, they're coming out any time soon.
Our Karl Penhaul is on this story for us. He's live for us in Chile right now.
Karl, explain that part to us. Yes, this is a breakthrough, but this doesn't mean we're about to see them up out of that hole any time soon.
KARL PENHAUL, CNN CORRESPONDENT: Exactly. Let me put it in perspective for you, T.J.
First of all, just a few moments ago, we talked to members of the rescue team working on the so-called Plan B that made contact with the miners this morning, about two and a half hours ago now. These two guys that we spoke to are from Pennsylvania, who sent a rock drilling company. They're the ones that have provided the drill bit down there. They say that they're exhilarated by having reached the workshop close to where the miners are. They also say they're exhausted.
But then from what they've explained -- I want to put it in a little bit of perspective to you. That drill, the Plan B drill, started drilling about two weeks ago. And it was going down something like this. There was already a bore hole in place, a four-inch bore hole. That's what a four-inch bore hole looks like, and the new drill was using that as a guide hole.
What has happened now is they've widened that hole, and they've made a 12-inch hole. A 12-inch hole, just to put it in perspective, looks like that. That is a 12-inch diameter. That is the size of the hole that is now drilled down, half a mile deep, to where the miners are, but, of course, not big enough to get out of.
The challenge now is that you've got to build -- to drill another hole -- you've got to widen this existing hole to that kind of diameter, so that these miners can actually get out. This is about 24 to 26 inches. It's still going to be a squeeze for some of those miners, but this is the challenge, to widen that hole now, from 12 inches to 26 inches. And that is what is going to take some more time.
Talking to Brandon Fisher, the head of the Center Rock Drilling Company, he wouldn't put a figure on it. He says, no, you can't put a proportional figure on this. It's taken two weeks to get this far. But it's going to take a lot longer to widen that hole to 26 inches, sufficiently wide to get the miners out. So while this is good news, nobody is over the moon yet.
They still realize that a lot of hard work is ahead. And according to predictions, this still could take until late October, early November, to get those miners out, T.J.
HOLMES: That is a great, great illustration, Karl, to help us all understand what the challenges are, and what they're trying to do. Last thing here, to you, though, you showed kind of that tight squeeze they would still have once they get this larger hole drilled. How does that work? Do they essentially put some kind of a harness on them and pull them up, essentially, through that hole? Answer that for me.
And also, how are these miners holding up? We know they've been able to talk to family members and get cigarettes and food and different things down there. But how are they holding up, as well?
PENHAUL: What they're building so that they can come through that size hole that I've just illustrated to you, they're building a cage. Now, the two prototype plans are in, and a final decision should be taken on which one to build as early as next week.
That will essentially be a cage that completely envelopes the miners. They will be shut in that cage one by one. There will probably be oxygen in that cage. The miners could also be blindfolded, because they're in that restricted space, traveling up a chute, half a mile long. They may even be sedated, according to the health minister.
Now, again, there's been developments there, because in the initial phases, the plan is the rescuers were saying it could take up to two hours to winch each miner safely from the refuge up to the surface. They're now developing a new winch, and they say that those miners could be up as fast as within 10 to 15 minutes. So that is great news, as well.
As far as the miners, I talked again to the drilling company that got through to the shelter today, and they say those miners were jubilant. They were very excited to hear that hammer coming down, those final few meters, until it finally broke through.
This, of course, a day ahead of Chile's independence day. That is tomorrow, September the 18th. And another treat in store for the miners, a feast of sorts is being laid on. They're going to get traditional Chilean empanadas stuffed with meat, onions, raisins and olives and also going to get barbecued steak down there, T.J.
HOLMES: Well, it's amazing the spirits they've been able to stay in. Karl Penhaul, again, we really appreciate the update and the illustration to help our viewers really understand what the challenges are down there.
Karl Penhaul for us in Chile. Thank you so much.
We turn now to politics and political rallies. Are you tired of them yet? You've seen quite a few of them here lately, it seems. But we've got a couple more for you in this hour.
"Sound Effect." Two political comedy legends, if you will now. Some faux newsmen, they're jumping head first now into the partisan political fray with rallies of their own in the nation's capital. We're talking about Jon Stewart here. He's having a rally called the Rally to Restore Sanity. It's going to be going up against Steven Colbert's March to Keep Fear Alive rally. These are going to be held, we think, October 30.
Both Comedy Central hosts got fired up about the rallies last night. Take a look at this.
(BEGIN VIDEO CLIP)
JON STEWART, HOST, COMEDY CENTRAL'S "THE DAILY SHOW": Tonight I announce the Rally to Restore Sanity. It is happening, people! It is happening! It is happening! A real gathering! We will gather. We will gather on the National Mall in Washington, D.C., a Million Moderate March, where we take to the streets to send a message to our leaders and our national media that says, we are here! We're only here, though, until 6, because we have a sitter!
STEVEN COLBERT, HOST, COMEDY CENTRAL'S "THE COLBERT REPORT": Ladies and gentlemen, it is on. October 30, on the Mall. Because now is not the time to take it down a notch. Now is the time for all good men to freak out for freedom!
(END VIDEO CLIP)
HOLMES: Which rally will you be at? You know, these two guys -- we're still not sure here if these rallies are going to take place. We did get word from the National Park Service today that both camps have, in fact, submitted applications, but no final decision has been made just yet.
The announcements come just weeks after we saw a couple of rallies. Conservative talk show host Glenn Beck hosted his much publicized Restoring Honor rally. That was on the National Mall, urged the crowd to turn back to God and return America to the values on which it was founded. That event drew some criticism for its timing and location. It was on the 47th anniversary of Dr. Martin Luther King Jr.'s "I have a dream" speech.
And in a counter to Glenn Beck, then, the Reverend Al Sharpton and his National Action Network held a Reclaim the Dream rally, as well.
Well, a mother tries to save the lives of her daughters and husband. Home invaders take her to the bank to get ransom money. The bad guys said everything would be fine if they got the money. They lied. The details, next. Stay with us.
(COMMERCIAL BREAK)
HOLMES: Well, the gruesome details of a horrific home invasion are coming out now in a Connecticut courtroom. A couple of ex-cons accused of murdering a mother and her two daughters. The dad, tied up in the basement, was able to escape before his home went up in flames. Three years now after the crime, police still face questions about their response.
CNN's Randi Kaye reports.
(BEGIN VIDEOTAPE)
RANDI KAYE, CNN CORRESPONDENT (voice-over): You're watching a wife and mother in a desperate attempt to save her family. This newly-released bank surveillance video shows Jennifer Hawke-Petit, 9:17 a.m., withdrawing $15,000 from her bank in the small town of Cheshire, Connecticut. It was a Monday morning, July 23, 2007.
About three miles away, something awful, something truly sinister, was happening inside her home. Her husband, William, was bound and gagged, and along with her two daughters, Haley and Michaela, was being held hostage. Their mom hoped the $15,000 would be enough to convince the two men, who allegedly broke into her home the night before, to spare her family's lives.
At the bank, she reaches out for help but has to be discreet, because one of the two alleged kidnappers was just outside. The bank manager quietly calls 911.
9:21 a.m. Cheshire police first learn of the home invasion and hostage situation.
UNIDENTIFIED FEMALE: We have a lady who is in our bank right now, who says that her husband and children are being held at their house. The people are in a car outside the bank. She is getting $15,000. That if the police are told, they will kill the children and the husband. She is petrified.
KAYE: Minutes later, she leaves the bank with the ransom money.
UNIDENTIFIED FEMALE: They told her they wouldn't hurt anybody if she got back there with the money. She believes them. I think she's walking out now. She's walking out now.
KAYE: 9:26 a.m. Hawke-Petit gets into her car, along with suspect Steven Hayes. The bank manager describes the vehicle to police. Officers are dispatched to the house to set up a perimeter.
9:27 a.m. A police captain tells officers not to approach the house. Almost 30 minutes go by. Still, not a single officer approaches the Petit home. No other authorities are alerted. Not the fire department, not state police.
In court, police testified that was protocol. In a hostage situation, they said, they don't storm the house. Adding, they had no reason to believe anyone was in immediate danger.
At 9:54 a.m., a police dispatch. Dr. William Petit, who would turn out to be the only survivor of this horrific crime, was in the yard calling for help. He was bleeding badly from his head, his ankles still tied.
(on camera) By now, nearly 40 minutes had passed since the bank manager warned Cheshire police about the nightmare scenario unfolding at the family's home. Forty minutes. Police would soon learn that Jennifer Hawke-Petit had been strangled, she and one of her daughters sexually assaulted.
(voice-over) In chilling testimony, Dr. Petit described how he had been beaten with a baseball bat, then tied to a pole in the basement. He said the suspects yelled to him, quote, "Don't worry. It's all going to be over in a couple of minutes." And it was.
Dr. Petit managed to free himself through a basement door, but minutes later, the house was on fire, his wife and two daughters dead.
Hayes has pleaded not guilty to sexual assault and murder. Around 10 a.m., the suspects race out of the driveway in the family's SUV. As smoke billows from the back of the home, the suspects slam into police cruisers. Only then do officers realize the situation was much more urgent than they had thought.
Randi Kaye, CNN, New York.
(END VIDEOTAPE)
HOLMES: About 17 minutes past the hour here now. Coming up, students and parents need to hear this. Student loan debt in the U.S. has now topped credit card debt in the U.S. Going to tell you what you can do to stay out of the red. Our Stephanie Elam coming up after the break. Stay here with us.
(COMMERCIAL BREAK)
HOLMES: There she is. Let's just get right to Stephanie Elam. Just always so excited to talk to her. Let's just bring her on in.
Stephanie, good to see you, as always. But you know...
STEPHANIE ELAM, CNN CORRESPONDENT: You too, T.
HOLMES: ... some of the news you have to cover in that financial unit of yours is not always so good when I do get to talk to you.
ELAM: Usually.
HOLMES: and this time we're talking about student debt. I guess it makes sense: the cost of colleges going up; parents are losing jobs. It's tougher for them, so naturally, kids are taking on more debt than ever. But, man, we're talking about a lot of debt.
ELAM: Yes, no, it's a lot of debt, and it's kind of surprising, T.J. I don't think a lot of people realize it. Student loan debt now hitting a record high, exceeding credit card debt in this country.
So let's take a look at what we're talking about here. Student debt now stands at $850 billion, according to financial aid Web site Fenay.org (ph). Well, take a look at total credit card debt. You see it right there. It totals $828 billion. So you can see, it's just outpacing it.
What's behind the trend? For one thing, people are cutting back on credit card use. It's now fallen for 23 months in a row. T.J., we've been talking about this a lot. People are freaked out because of the economy, and they're saying, "If I can't buy it outright, I do not want to use a credit card." So people have been scaling back that way.
And at the same time, you've got college costs that are rising at about 5 percent a year, and that means more borrowing for that end of things. And that's why students are racking up loan debt at a rate of more than $2,800 a second. Yes, we broke it down to the second for you.
Now, you might think, you know, this is going to freak a student out. But that's actually not what we found out when we talked to some New York students. Maybe they're just used to paying a lot.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I think when I become successful I'll be able to pay them off. But I'm -- I mean, it's always a little worrying that you have, like, this massive debt on you.
UNIDENTIFIED MALE: Hopefully, I can get a nice job that I can pay it off in time.
UNIDENTIFIED FEMALE: With what I'm in loans, I need to have, like, a very well-paying job by the time I'm, you know, in my mid-20s to start paying it back.
UNIDENTIFIED FEMALE: I know that my job prospects out of graduation are much higher, so the price will hopefully be worth it.
(END VIDEO CLIP)
ELAM: So we've all heard this, T.J., that if you go to college, you're going to make more money than you would if you didn't go to college. And you heard all of them talking about jobs.
Here's the problem with that. Jobs are not as easy to come by these days. And there's a lot of people who have been in the job force for years who are also looking for jobs right now, which makes it difficult for these new students. And so they're having trouble paying off their debt, because they're not working. And the default rate on federal student loans, it recently hit 7 percent. And that is the highest since 1997, T.
HOLMES: So what are you saying, Stephanie? We just shouldn't go to college? I'm teasing. That's not what you're suggesting.
ELAM: Yes, no. I think it would be really hard for any of us to have the jobs that we have without a college degree.
HOLMES: Still got to go to school. So what are you supposed to do? It sounds like you don't have a choice but to take on this debt. I mean, you can compete for scholarships and grant money. But everybody's competing for a lot of that stuff now. So do you just not have a choice but to take on debt?
ELAM: You know what? You've got to get out and you've got to throw your elbows, get out there and compete. That's what you have to do. But experts are saying the first thing you do, if you're going to break it down on where to borrow, start federal first. Go to federal loans first. Stafford and Plus loans are cheaper, and they're more widely available than private student loans.
And also, keep this in mind. Don't borrow more for your entire education than your expected starting salary. That means you're going to have to do a little research and find out what your chosen field will pay.
And make sure you apply, like you said, for grants and scholarships. Remember, you don't have to pay those back. And sometimes they're really, like, particular to you. Like, if you happen to be 6'2" and you have green eyes and you live on a mountain. They're real specific. So if you fit that specific thing, then go ahead and get your money. You've got to look for them. It takes works work and you've got to write an essay or something, but it's free money, so you've got to go out there and do it.
Now, one more thing, T, as you can see here behind me, you've got a calculator here on CNNmoney.com, and it will help determine how quickly you can pay off your student loans for all those people who are back in school now. I can tell you that, as it says right here, money's best 529 plans...
HOLMES: Yes.
ELAM: ... we've set up a 529 plan for young Simone already.
HOLMES: Simone.
ELAM: She's 3 months old. Yes.
HOLMES: Aww, Simone.
ELAM: I love that you say her name like that every single time.
HOLMES: Yes, I do.
All right. And that's good information, too. You can get a 6'2" green-eyed, mountain-top scholarship. Who knew? Stephanie.
ELAM: You never know. You've got to look out there. Just open your eyes, look, see what you fit for.
HOLMES: Good to see you, as always.
ELAM: You, too.
HOLMES: And a reminder to our viewers: Stephanie is, of course, part of the best financial team on television. You can catch them on "YOUR $$$$$," hosted by Ali Velshi, Christine Romans, Saturday 1 p.m. Eastern Time, and Sundays at 3 p.m. Eastern.
Want to give you a look now at some of the stories that are making headlines right now.
You heard Chad talk about it a short time ago. Hurricane Karl, right now battering Southern Mexico after making landfall. This was just a short time ago. The heavy winds and rains already causing some flooding.
Karl is a Category 3 hurricane, has winds around 120 miles per hour right now. We will be checking in with our weather team, including Chad Myers. They're keeping a very close eye on this storm. We'll bring you the updates throughout the day.
Want to turn to London now, where six street cleaners were arrested this morning on suspicion of terrorism. Police say they aren't sure if the suspected plans included an attack on the pope, who is in London today, of course. Security plans for Pope Benedict were reviewed. No changes, though, were made to his schedule.
Also, thousands of people still without power today after a deadly storm whipped throughout New York City. One woman died when a tree fell on her. Winds topping 70 miles per hour took down trees and power lines across the city. Right now we don't have the official determination of whether or not it was a tornado, but we should get that in short order.
Also, a Washington state woman who gained national attention for allegedly being the victim of an acid attack now says she made the whole thing up. People say Bethany Storro admits she lied to them about an African-American woman throwing acid in her face.
The community came together to raise money for her medical treatment. Now it's up to prosecutors to decide if she'll face charges. A lot of people scratching their head. What would make someone do that to themselves? We'll follow that story.
Coming up, many breast cancer patients may want it, but researchers say it doesn't really prolong their lives. Now it's time for the FDA to weigh in on Avastin. Next, the story of one woman who's outlived doctors' predictions.
(COMMERCIAL BREAK)
HOLMES: Well, it's decision day for the FDA. The agency is expected to decide whether to revoke its approval of Avastin as a treatment for breast cancer. Two studies showed the drug did not lengthen patients' lives. But some patients beg to differ.
Here now, our senior medical correspondent, Elizabeth Cohen.
(BEGIN VIDEOTAPE)
ELIZABETH COHEN, CNN CORRESPONDENT (voice-over): The first time Ronny Villarreal got breast cancer, she was 27 years old. When it came back, she was 31 and pregnant.
RONNY VILLAREAL, BREAST CANCER PATIENT: And when I was 27 weeks pregnant is when I found out of the recurrence of my cancer, which it had spread from the original site into my bones, and this particular case into my right hipbone.
COHEN: Little Maddy was born healthy, but the cancer is still in Villareal's bones. And now it's in her liver, too.
VILLAREAL: I had a healthy, beautiful baby.
COHEN: Most patients who get a diagnosis of stage four breast cancer, like Villarreal, can expect to live only another year and a half. But Villarreal has lived two and a half years and counting, and her tumors have shrunk a bit. Why has she lived longer than most?
VILLAREAL: I think, first and foremost, it's my faith and -- in God.
COHEN: And also, she says, because of one of her medicines, Avastin. Like other patients, Villarreal uses it in combination with chemotherapy drugs. VILLARREAL: People respond differently to different types of treatments, and for whatever reason I have responded positively to this treatment.
COHEN: Dr. Edith Perez is her doctor.
DR. EDITH PEREZ, MAYO CLINIC: Before she started this treatment, she was in pretty bad condition.
COHEN (on camera): Have you actually seen tumor shrinkage?
PEREZ: Oh, absolutely yes. Yes. Definitely.
COHEN: This is the Avastin here?
PEREZ: Yes.
COHEN (voice-over): But Villarreal is afraid her insurance might soon stop paying for Avastin, that's because recent studies show breast cancer patients on average don't live longer with Avastin. Plus, the drug has serious dangers, including high blood pressure and internal bleeding.
Dr. Joan Mortimer was on the Food and Drug Administration advisory committee that voted against Avastin.
DR. JOANNE MORTIMER, CITY OF HOPE NATIONAL CANCER CENTER: I think, based on the objective data that we have right now, there really is no evidence of the benefits of Avastin with chemotherapy outweigh the risk to the patient.
COHEN: Without insurance coverage, there's no way Villarreal could pay for Avastin on her own.
(on camera): If patients have to pay for this themselves, how much money is it per month?
PEREZ: You know, again, it varies from institution to institution, but it's going to be more than $5,000 a month.
COHEN: That's a lot.
PEREZ: A lot of money, yes.
COHEN: Do you think Avastin is the reason why you have lived longer than expected?
VILLARREAL: I don't know. I couldn't say that Avastin is the reason why I have lived longer than I have expected. I say that it is a combination of a lot of things.
COHEN (voice-over): Maybe it's her other medicines or maybe just good luck. But Villarreal doesn't want to change the treatment that seems to be working.
VILLARREAL: So, it's given me two years with my daughter and to me that's kind of priceless.
I mean, I, again, will willingly take whatever I can get to give me more time with my family.
COHEN: Elizabeth Cohen, CNN, Jacksonville, Florida.
(END VIDEOTAPE)
HOLMES: The FDA's decision will not affect Avastin as a treatment for other forms of cancer.
She calls herself a tough cop on the beat, and her beat is about to change now. Elizabeth Warren is joining the Obama administration, though not in the role her biggest fans might prefer. We'll explain and we are on the story right when we come back.
(COMMERCIAL BREAK)
HOLMES: Well, about 20 minutes from now, the president -- President Obama -- will step into the White House Rose Garden, alongside a hero in the eyes of consumer advocates. That same person, though, is a nuisance in the eyes of big banks.
She is Elizabeth Warren, the newly appointed assistant to the president and special adviser to the Treasury secretary.
What in the world does all that mean? Well, Warren is going to help set up the Consumer Financial Protection Bureau. That is the cornerstone of the regulatory overhaul signed into law in July.
Who exactly is this woman? Elizabeth Warren. She is the chair woman of the Congressional panel overseeing TARP, better known as the big bank bailout. She is also a law professor at Harvard, also author of personal finance books and a plainspoken critic of the financial industry.
As for the new consumer protection office, it will keep an eye on credit card practices, bank account fees, student loan terms and credit reporting agencies. Supposed to be looking out for you.
In case, though, you might be wondering why Warren isn't just being named to run this office outright, it's because the White House believes she wouldn't be able to get confirmed in the senate. So instead of going that route, they decide to make her the special adviser. So until further notice, the director's post at the CFPB, it's going to be open.
We'll bring you the president's remarks, expecting them again here in about 20 minutes, close to the top of the hour, 1:55 precisely is what we're told eastern time. When that happens, we will bring that to you live.
Well, actually, let me correct what I just told you. The times are changing a bit on us here. It's not going to be 1:55. It's now going to be in about two minutes. A little different. So let me knock 18 minutes off that 20 minutes I told you. Let's keep an eye and go ahead and stay up here.
But again, Elizabeth Warren. And there was a lot of back and forth and some people on both sides who were for her and against her. Different like the process that the White House is choosing now to put her in this new post.
Again, she was supposed to be -- and it was her idea, this new Consumer Financial Protection Bureau, it was her idea, president wanted her to head it, but now the president not going to name her to this post. There was going to be a five-year term, she didn't want to last that thing, and didn't think she could get approved.
I think we're going to go ahead and try to get in a break here before the president stems out. I'll go ahead and take a quick break, bring you to the president right after.
(COMMERCIAL BREAK)
HOLMES: President just toying with me on the time. Here he is now, talking about the new appointment of Elizabeth Warren.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Before we begin, I just want to mention a report that was released by the Census Bureau yesterday about what happened to wages during the last decade. It revealed that, between 2001 and 2009, the incomes of middle-class families fell by almost 5 percent.
I want to repeat that: Between 2001 and 2009, the incomes of middle-class families fell by 5 percent. In the words of today's Wall Street Journal, this lost decade was the worst for families in half a century, a decade that obviously ended in a devastating recession that made things even worse.
We know that a strong middle class leads a strong economy. And that's why, as we dig our way out of this recession, we've set our sights on policies that grow the middle class and provide a ladder for those who are struggling to join it.
And that's why I am urging the leaders of the other party to stop holding middle-class tax cuts hostage and extend this relief to families immediately. They need it. They need our help. And that's why we're here today.
You know, part of what led to the financial crisis were practices that took advantage of consumers, particularly when too many homeowners were deceived into taking out mortgages on their homes that they couldn't afford.
But we also know that these practices predated the crisis, and we also know that these practices don't just exist in the housing market.
For years, banks and mortgage lenders and credit card companies have often used fine print, and confusing language, and attractive front-end offers to take advantage of American consumers. We've seen banks charge unreasonable overdraft fees. We've seen credit card companies hit folks with unfair rate hikes. We've seen mortgage lenders offer cheap initial monthly payments and interest rates that later skyrocketed.
All this has cost middle-class families billions of dollars, tens of billions of dollars that they could have used to pay the bills or make the mortgage or send their kids to college.
And I have to say, you know, when Michelle and I were first starting a family, we had to navigate a lot of these financial decisions, whether it was buying a first home or paying off our college loans or putting a lot of debt on credit cards, and, obviously, we were better off than a lot of families, but we still often found ourselves confused or finding ourselves in tough situations as a consequence.
So -- so we've got an -- a pretty good idea, I've got a personally good idea of how this can be difficult and sometimes confusing for the average consumer.
And that's partly why, even when I was still in the U.S. Senate, I took such a great interest in the work of the woman standing next to me. I have known Elizabeth Warren since law school. She's a native of Oklahoma. She's a janitor's daughter who has become one of the country's fiercest advocates for the middle class.
She has seen financial struggles and foreclosures affect her own family. Long before this crisis hit, she had written eloquently, passionately, forcefully about the growing financial pressures on working families and the need to put in place stronger consumer protections.
And three years ago, she came up with an idea for a new, independent agency that would have one simple overriding mission: standing up for consumers and middle-class families.
Thanks to Elizabeth's efforts, as well as the dedication and persistence of the person to my right, Secretary of Treasury Geithner, as well as leaders in Congress, like Chris Dodd and Barney Frank, that agency will soon become a reality.
The Consumer Financial Protection Bureau, which was one of the central aspects of financial reform, will empower all Americans with the clear and concise information they need to make the best choices, the best financial decisions for them and their families.
Never again will folks be confused or misled by the pages of barely understandable fine print that you find in agreements for credit cards or mortgages or student loans. The bureau is going to crack down on the abusive practices of unscrupulous mortgage lenders. It will reinforce the new credit card law that we passed banning unfair rate hikes and ensure that folks aren't unwittingly caught by overdraft fees when they sign up for a checking account.
It will give students who take out college loans clear information and make sure that lenders don't game the system. And it will ensure that every American receives a free credit score if they are denied a loan or insurance because of that score.
Basically, the Consumer Financial Protection Bureau will be a watchdog for the American consumer, charged with enforcing the toughest financial protections in history.
Now, getting this agency off the ground will be an enormously important task, a task that can't wait. And that task is something that I've asked Elizabeth to take on.
Secretary Geithner and I both agree that Elizabeth is the best person to stand this agency up. She was the architect behind the idea for a consumer watchdog, so it only makes sense that she be the - she should be the architect, working with Secretary of Treasury -- Treasury Geithner, in standing up the agency.
She will help oversee all aspects of the bureau's creation, from staff recruitment to designing policy initiatives to future decisions about the agency. She will have direct access to me and to Secretary Geithner. And she will oversee a staff at the Treasury Department that has already begun to work on this task.
She will also play a pivotal role in helping me determine who the best choice is for director of the bureau. And given the importance of these economic issues, I also want Elizabeth to have a role as a White House adviser, as well as adviser to Secretary Geithner on consumer issues.
Elizabeth understands what I strongly believe: that a strong, growing economy begins with a strong and thriving middle class. And that means every American has to get a fair shake in their financial dealings.
For years, financial companies have been able to spend millions of dollars on their own watchdogs, lobbyists who look out for their interests and fight for their priorities. That's their right.
But from now on, consumers will also have a powerful watchdog, a tough, independent watchdog whose job it is to stand up for their financial interests, for their families' future.
And I'm proud that we got this done. And I'm equally proud that Elizabeth Warren will be helping to make her original vision a reality.
So we are extremely proud of you, Elizabeth. Good luck.
ELIZABETH WARREN, ASSISTANT TO THE PRESIDENT AND SPECIAL ADVISER TO TREASURY SECRETARY: Thank you, Mr. President. Thank you.
OBAMA: Thank you. Tim...
WARREN: Thank you. Thank you, Mr. Secretary.
OBAMA: Thank you, everybody.
QUESTION: Why not make her director, Mr. President? Why not submit her to confirmation?
(CROSSTALK)
QUESTION: ... constitutional authority. Have you bypassed that constitutional authority --
HOLMES: Okay. You see the president didn't stop to ask -- or answer that question that he probably knew was coming. But you heard the reporter there, shout out, trying to get the president to answer the question, why not make her director of this particular agency? Well, the White House didn't believe, possibly, that she could get approved by the Senate with this job.
Let me back up a second here. Getting ahead of myself here. But what you just heard there is the president say that Elizabeth Warren, 61-year-old Harvard professor that he has known since his days at Harvard Law School. He is now appointing her - let me get the title right here - it is the assistant to the president and special adviser to the Treasury secretary. What she is going to do -- she is tasked now with being the architect of this new agency that is supposed to look out for you. This consumer protection, Financial Protection Bureau is what it's called. It was part of the Wall Street reform bill passed this summer.
Now, she -- it was her brain child, but she is not being appointed as director or nominated as director. She would have to serve a five-year term and would have to go through Senate confirmation. Well, at this point, given the climate, you need -- the White House possibly thought they couldn't get her through the Senate. It would be a nasty Senate confirmation battle, so instead, he has made her the assistant to the president with a special adviser to the Treasury secretary. She is now going to help set up this new agency is what you just heard.
You heard that reporter shout out, why not make her director? That's a question a lot of people have. And the answer that a lot of people are given, because in fact, she couldn't get through Senate confirmation.
The president made clear, as well, that we're going to help -- she is going to help him determine who will be the director of the agency. So, don't know if she is going to be up for that job down the road or not. But Elizabeth Warren now going to be the special adviser to the president and the Treasury secretary.
Coming up here -- I believe she is going to be - "JOHN KING U.S.A," I believe I have that right as well. "JOHN KING U.S.A," 7:00 -- we see it on the screen now. she is going to be talking to our John ling, 7:00 eastern time, about her new post.
Well, advice on the midterms. The former president, president Clinton. He's got something to tell President Obama. That's going to be in our "CNN Equals Politics" update. That's coming your way. Stay here.
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(BEGIN VIDEO CLIP)
MEL GIBSON (acting): Great photographs.
HELEN HUNT, (voice-over, acting): No clue they're all Margaret Bourke White.
GIBSON: They're not all Margaret Bourke White, are they?
HUNT: Yes. They are.
(voice-over): This guy's kind of exciting.
(END VIDEO CLIP)
HOLMES: All right. You remember this movie? It was "What Women Want"? Mel Gibson's character was able to read the minds of women.
Well, the concept might not be that far off. Researchers at the University of Utah are developing a possible way to read minds, and that is today's "Big I." The study was published in the October issue of "The Journal of Neuro Engineering." And researcher Bradley Greger. He joins us now from Salt Lake City.
Sir, thank you for being here. How is this supposed to work now, reading people's minds? Do I have this right?
BRADLEY GREGER, ASSISTANT PROFESSOR, UNIVERSITY OF UTAH: Well, thank you for having me on the program. I tend to shy away from phrases like reading people's minds. I think honestly, if you want to know what a woman wants or what she thinks, ask her out for coffee and talk to her.
(LAUGHTER)
GREGER: We really are trying to work on something that is going to enable people that lost the ability to communicate have that ability restored. We are tapping into and interfacing with the speech areas of the brain. There's a brain that understands speech and produces speech. So, we are pretty excited about that. And in the extreme, you could think of it at mind reading --
HOLMES: You say you are interfacing with?
GREGER: -- trying to help patients with --
HOLMES: You say you are interfacing with? So, slow down for the rest of us out here. What does that mean? How do you interface with? I guess how do you get from someone who can't speak, tapping into their brain, then to understanding possibly what they would like to say?
GREGER: Certainly, so, basically, what we did is take a grid of microelectrodes, which are basically very tiny wires and placed them on the surface of the patient's brain right over the areas of the brain that are involved in understanding and producing speech. And then using the microelectrodes, we were able to record the fluctuations in electricity while they spoke and then we could look at the patterns of electrical fluctuations and determine what word they were going to say.
HOLMES: And what we're talking about, we'll be able to understand, maybe full thoughts, full sentences of what people are trying to say?
GREGER: Well, certainly. In the future, it's where we hope to take things. Right now, we are working on just a few number of words. A limited number of words. We would like to do a number of words and the alphabet. Because that would enable patients who have lost the ability to speak or communicate get a limited ability to communicate restored to them.
HOLMES: All right. And last thing here quickly, how far away are we from implementing this technology?
GREGER: Well, we have proven we can get it to work. Now, we just need to refine the device and some of our algorithms that do the decoding. We hope over the next few years, we can do a few more patients. At that point, we'll be ready to go to FDA and say, can we get permission to do a feasibility trial and really see if we can restore communication to paralyzed patients.
HOLMES: Well, Bradley Greger, we will be checking in with you then over the years. We can't wait to actually see this. It sounds like you're right on the cusp, and it's only a matter of time.
Bradley Greger, congratulations on your work. Thank you for being here. You enjoy your weekend.
GREGER: Thank you very much.
HOLMES: We'll have to read up on the research and its applications. You can head over to our blog. We have it up for you. CNN.com/tj.
Quick break. We'll be right back.
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HOLMES: Time now for the "CNN Equals Politics" update. And for that, we go to our senior White House correspondent, Ed Henry in Washington for us. Now, Ed, since you are coming to the show early, it doesn't mean you're not coming for "The Stakeout" later, right?
ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT: No, I'll come on back as long as you have me back. I mean, Ali usually tries to just shove me out of the way because he doesn't want too much face time for me. I know you are a fair guy and want to get me on. I'll be on every hour with you, if you want.
HOLMES: By all means.
HENRY: All right, let me give you some updates.
First of all, the woman of the hour, Elizabeth Warren. You just heard the president in the Rose Garden formally introducing her. A couple of hours ago, a behind-the-scenes tidbit I'll give you. It's on the Ticker right now. I ran into Elizabeth Warren at the northwest gate. It was kind of funny because she had just two staffers with her. She had a big backpack. It looked like the first day of school. She was beaming.
And I asked her about all of this talk that maybe she's not going to have a lot of power. She told me, based on her conversations with the president, she's convinced she's going to have the power she needs to get this job done, get this agency up and running. As she put it to me, very confident she's going to get a lot done.
Second item, former president Bill Clinton is on the Ticker right now. Has a little advice for President Obama about those midterm elections coming up. He was on "The Daily Show" with Jon Stewart. And it was interesting. Among the things that Bill Clinton said was that President Obama needs to make a better case to the voters about what he's accomplished in the last two years, saying, quote "I would like to see the president go around the country and explain it just like I did. Say we stopped digging, you know, digging out of the hole and that we are turning around the corner."
Interesting, though, that the former president said the current president should do it "like I just did," pointing out that maybe he's laying out the case perhaps a little bit better.
And finally, first lady Michelle Obama. You'll see over my shoulder here's a little picture of her. She's going to be going with her husband to New York City next week for the U.N. General Assembly meetings. The world leaders coming in as well with their spouses. The first lady is sort of putting her food where her mouth is. She's going to host a healthy luncheon at a farm in New York for some of those spouses. She's had that initiative about healthy eating. She's backing it up, and is going to provide a meal to some of those world spouses there.
HOLMES: All right. Ed, we appreciate the update. See you for "The Stakeout" next hour. Thanks, buddy.
HENRY: Sure.
HOLMES: And be sure to stay with CNN for complete coverage of the key races and key issues heading into the critical midterm elections. Your next "CNN Equals Politics" update just about an hour away. Stay here.
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