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Rebels: No Gadhafi Exit Deal Talks; NATO: 24/7 Surveillance in Libya; Women's Day in Egypt; The Help Desk; CNN Challenge; Fighting Crime With Chess

Aired March 08, 2011 - 12:00   ET

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

SUZANNE MALVEAUX, CNN ANCHOR: Top of the hour. I'm Suzanne Malveaux. Let's get you up to speed.

One Libyan opposition group claims that Moammar Gadhafi is offering to give up power if he's not prosecuted. But another rebel group says there are no negotiations for an exit deal. Denials are also coming from the Gadhafi regime in Tripoli.

Gadhafi's warplanes pounded the rebel-held oil town of Ras Lanuf today. Opposition forces say they still hold Misrata, but tanks have that city surrounded. One rebel told our Anderson Cooper the situation is desperate.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I don't know if maybe tomorrow I will be still alive or not. I have nothing to lose.

ANDERSON COOPER, HOST, "AC 360": You think you may die tomorrow?

UNIDENTIFIED MALE: Nobody believes that he will be alive tomorrow, or the day after tomorrow. Nobody knows.

Every day we have people die. So I think I have a right to talk. This is the end, you know?

(END VIDEO CLIP)

MALVEAUX: The Taliban say they're behind a bombing in Pakistan today. The blast caused a natural gas refueling station to explode. At least 21 people were killed. A Taliban spokesman says the target was Pakistan's intelligence agency, the ISI. That building was not damaged.

Well, today is the 100th anniversary of International Women's Day. In Egypt, activists called for a million women to march on Tahrir Square to demand fair and equal opportunities in society. Women call their role in Egypt's recent revolution a breakthrough.

And Wisconsin Governor Scott Walker calls border talks with Democratic lawmakers "ridiculous." Fourteen state senators want the governor to meet them at the border with Illinois to talk about his collective bargaining bill. The Democrats fled to Illinois almost three weeks ago to stall a vote.

(BEGIN VIDEO CLIP)

JON ERPENBACH (D), WISCONSIN STATE SENATE: The issue isn't taking away our parking spaces or having us arrested. The issue is to try and come to a resolution over collecting bargaining. Man, I wish we could be home right now, but again, we remain strong in the fact that we're trying to get resolution on a couple of pretty sticky issues back in Madison.

(END VIDEO CLIP)

MALVEAUX: Ohio Governor John Kasich is delivering his first State of the State Address at this hour in Columbus. The Republican is pressing a bill to limit collective bargaining rights to close the state's budget deficit. The state Senate has approved the measure. The House takes it up today.

Well, high winds caused a New Mexico wildfire to mushroom overnight. Five homes burned in Silver City, along with a number of barns and sheds. Two hundred families had to evacuate. They're waiting to find out if they can go home tonight.

And we're getting reports from two different opposition groups in Libya. One is saying that Moammar Gadhafi wants a deal to leave the country. The other says there are no negotiations that are going on. Gadhafi's government has denied it right from the start.

Our CNN national security contributor, Fran Townshend, she joins us from New York via Skype. Fran was a member of the External Advisory Committee, and last May she visited high-ranking Libyan officials at the invitation of the Libyan government.

So, Fran, you know Gadhafi. You've dealt with him before. What do you make of these reports? Does it sound like he's the kind of guy that would try to make a deal to get out of this?

FRAN TOWNSEND, CNN NATIONAL SECURITY CONTRIBUTOR: No. I mean, he goes on and on about al Qaeda and distributing drugs in Libya to influence the Libyan people. I mean, he's not the kind of guy who's all that practical, although I will say this, Suzanne -- in some ways this may be a trial balloon.

U.S. officials have said off the record that they have a back channel to him with people like Musa Kusa, who's right now the foreign minister, but was the head of the Libyan intelligence service when they handed over their weapons program. And so I think there is a back-channel dialogue.

This may be his way of floating the idea. The report says that he's looking for safe passage out of Libya and for an agreement not to prosecute he or his sons. I expect he would also want the ability to access some of the cash that's been frozen. But we'll see.

I mean, actually, if you could find a place for him to go, and get to a peaceful resolution, it may be best for everyone. It wouldn't require U.S. or NATO military assets. You might stop the killing of the Libyan people. And so it might provide -- if you could get him to abide by such a deal, it might not be a bad option.

MALVEAUX: And on another matter, Fran, Gadhafi keeps saying that al Qaeda is behind this, that they're providing these teenagers with drugs to protest. We all know that this is patently false.

Why does Gadhafi keep saying this? Are there Libyans who will believe that story?

TOWNSEND: Well, you know, Suzanne, I mean, I think throughout the region, and frankly throughout the world, people have tremendous fear knowing what al Qaeda is capable of based on September the 11th. And so, you know, it's a region that's rife with rumor. Gadhafi is very much controlling people's access to public information.

And so this is -- it's really his ability to suggest to the Libyan people in particular, and to his regional neighbors, that perhaps there's something even worse if he were to leave. So I think it's really fear-mongering more than anything else, but there's no one -- no one has suggested, no intelligence service, no one, that there's any truth to this.

MALVEAUX: And Fran, looking ahead here -- you were homeland security adviser under President Bush -- Representative Peter King, the congressman, chair of the Homeland Security Committee, he's holding these hearings on Thursday. The premise being that al Qaeda is radicalizing American-Muslims here in the United States, and that they are a significant threat, a homegrown threat, when it comes to terrorism in our country.

First of all, is that premise true?

TOWNSEND: Well, it is certainly true that al Qaeda is radicalizing American-born Muslims and does seek to recruit them. But that doesn't mean -- you know, it's also true that there are many American-Muslims who have been incredibly helpful to law enforcement in ways big and small. Sometimes it's the parents of those kids in northern Virginia who, when they went to Pakistan, the government was notified by their parents. And so there are many law-abiding American-Muslims who have been very helpful in the fight against terrorism.

MALVEAUX: Do you think these hearings will be helpful, or as some Muslim leaders say, it unfairly singles out a particular religious group?

TOWNSEND: You know, this matters more, Suzanne, about how it's handled, frankly. It could be helpful if they were able to talk about the issue and the assistance that's been provided by Muslim-Americans.

I really -- you know, it's funny. If they're going to play politics with this, I think that's unhelpful. But, for sure, there's a threat here that the law enforcement authorities here in the United States are trying to cope with.

MALVEAUX: All right. Fran Townsend, thank you very much. Appreciate your perspective. Thanks, Fran.

Well, here's a look at what's ahead "On the Rundown."

First, stuck in the mud -- literally.

Then, women in Egypt marching for equal rights.

Also, hearings on the radicalization of Muslims, reaction from a Muslim-American congressman.

And she was police chief in a Mexican town caught in the drug war. Now she's on the run.

And finally, customize your own products with Zazzle.

(COMMERCIAL BREAK)

MALVEAUX: Here's your chance to "Choose the News." We're going to tell you about three stories. You vote by texting for the one you'd like to see.

First, a little boy whose mom and dad are deployed overseas in Afghanistan. We're going to show you how this military family is coping and why talking on the Web doesn't always cut it.

Using the game of chess to keep kids off the streets. Meet a former state trooper sick of teen crime who puts his own money on the line to help the next generation.

Then, homes of steel, how some homeowners are protecting their life's biggest investment from tornadoes.

Vote by texting 22360. Vote 1 for "Mom and Dad Overseas"; 2 for "Chess to Fight Crime"; and 3 for "Homes of Steel." The winning story will air in the next hour.

Heavy rains, melting snow making a big mess of the Northeast. We are seeing a lot of flooding, even mudslides in those pictures in Greenfield, Massachusetts. This SUV got stuck in the mud. The driver had no choice but to leave it there. You've got to wonder what is next.

(WEATHER REPORT)

MALVEAUX: We're keeping a close eye on how instability in the Arab world is hitting your wallet. This morning, world oil prices actually eased a bit after reports that OPEC may increase its output. Prices are still hovering around $105 a barrel. And that's the highest in almost two-and-a-half years.

Well, now some gas prices. This time yesterday, we told you unleaded was averaging $3.51 a gallon. Today, Americans are paying a penny more, an average of $3.52.

Well, countries around the world are celebrating International Women's Day. We're going to take you to Cairo. That is where women are marching for equality in Egypt.

(COMMERCIAL BREAK)

MALVEAUX: Calls for international action in Libya are growing louder, and now NATO is stepping up its surveillance and inching toward possible military involvement.

Our CNN Pentagon correspondent, Barbara Starr, she's joining us live.

Barbara, tell us what this means, a surveillance flight. What does that typically involve? Are there American pilots and planes involved in this?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Suzanne, at this point, what we're really talking about are NATO aircraft flying out of Europe. And by all accounts, flying over the Mediterranean, using that high-tech gear they have to keep an eye on the air traffic pattern inside Libya, but not necessarily, of course, flying into Libyan airspace.

There is no international agreement about doing that, no international call to go into Libya. So NATO keeping an eye on that, even as these discussions go on about an official no-fly zone.

And the U.S. view remains unchanged. That would have to happen under some sort of United Nations or NATO framework, that there would have to be an international consensus to do that.

Libyan aircraft, again flying today against opposition forces, against Libyan civilians, dropping bombs in key towns. The fighting, ramping up. And that's putting the White House in a very tough position day by day. What do they do as the Gadhafi forces continue their counterattacks?

Suzanne.

MALVEAUX: And Barbara, it seems as if what you're saying as well is that there are no discussions, they're not entertaining any kind of go-it-alone scenario coming from the American military. Is that right?

STARR: You know, realistically, I think that is absolutely correct. The White House officially publicly says, as they always do, all options remain on the table.

But even yesterday, the White House spokesman, Jay Carney, said look, we're not really talking about ground troops. And clearly, the U.S. wants to do it in some sort of concert with the United Nations and NATO, because they want to have that international umbrella over all of this.

The last thing they want is another sort of optic or visual of the U.S. military going into a Middle Eastern country and engaging in a third conflict. But still, circling back one more time, Suzanne, the deep concern is if the Gadhafi forces really open up against Libyan civilians, what do you do? How do you react? How on earth do you stop them --Suzanne.

MALVEAUX: Sure. Everybody is paying very close attention to what takes place there on the ground in Libya to see if they can -- for that very concern. So thank you very much, Barbara. Appreciate that.

It was a breakthrough moment for Egypt. And in the sea of protests that led Hosni Mubarak to step down, we saw a lot of female faces.

Today, on International Women's Day, many of those same women are marching again, this time against inequality.

Our John Vause, he's here with more in today's "Globe Trekking."

And John, give us a sense of what this march is all about. What are we seeing there in the streets in Cairo?

JOHN VAUSE, CNN SR. INTERNATIONAL CORRESPONDENT: Yes. Well, they called for a million women to turn out in Tahrir Square. They didn't quite get that. It was about 1,000 or so people. A lot of women there actually concerned that Egypt may be seriously backsliding on women's rights.

Now, to give you a sense of the social climate there right now, there's about 1,000 or so women who turned out today. They were apparently shouted at by a group of men who were chanting anti- feminist slogans.

Now, compared to a lot of countries in the Middle East, Egypt is relatively progressive. There are women who are divorced, who pass their nationality on to their children. Women are treated the same under the tax laws.

But since the fall of Mubarak, the interim military leaders haven't appointed a single woman to that council which is overlooking the constitutional changes. And there's not one woman who's been appointed to the new cabinet. There's one woman who is a hangover from the Mubarak days.

Keep in mind, there's a lot of support in Egypt for Sharia law, which essentially means no women's rights whatsoever. So a lot of people are seeing women's rights as a litmus test for the country. The future direction of the country, where it goes from here, could be decided with how women are actually treated.

MALVEAUX: And having lived in Cairo, I met a lot of Egyptian women, and some who were feminists, some were veiled, some who were both, but some who are educated and frustrated that they don't have jobs ahead. There are huge disparities when it comes to socioeconomic status. Religion, Islam, plays a real role and complicating -- it's a very complicated life for a lot of Egyptian women.

VAUSE: Yes.

MALVEAUX: What do we think in terms of the big picture when you look at how they're doing overall?

VAUSE: Well, you know, it's a very difficult situation for women. We've said before that Egypt, compared to the rest of the region, is fairly progressive. That's really true. Compared to the rest of the world, it ain't the case.

Egypt ranks 125 out of 134 countries in terms of equality for women. Women also face prejudice in the workplace. Thirty-two percent of women are unemployed. Only 59 percent of women are actually literate.

And there is this startling statistic as well when it comes to sexual harassment. Eighty-three percent of Egyptian women in the country say they've been sexually harassed, 98 percent say of foreign women in Egypt say that they have suffered some kind of sexual harassment at some point. So right now there is this very big gender split.

MALVEAUX: And the irony of it was you had this liberation movement, so many women who were on the streets, who were protesting, fighting for equality. At the same time, you still had that sexual harassment. You had foreign correspondents, you had Egyptian women who still were being harassed.

VAUSE: Sure. And that's what we're seeing with this protest in Tahrir Square.

The leaders of this women's movement are saying, listen, this revolution is as much ours as it anybody else's. There were women in Tahrir Square when the tear gas canisters were coming in, when the bullets were flying, when the camels and the horses were charging the crowd. The women stood firm and said they own this revolution just as much as anybody else.

MALVEAUX: All right. John Vause, thank you so much. I appreciate it.

VAUSE: OK.

MALVEAUX: Well, two days until Congress begins controversial hearings on homegrown radical Islamists. We're going to talk to Indiana's Andre Carson. He is one of just two Muslim congressmen.

(COMMERCIAL BREAK)

MALVEAUX: Here's a look at what's ahead "On the Rundown."

A Muslim-American congressman calls hearings on radical Islam "misguided." We're going to talk with him in just a minute.

Also, she was police chief in a Mexican town caught in a drug war. Well, now she's on the run.

And in our "Tech Tuesday" report, a company that lets you customize any product with your own design. Well, Congressman Peter King compares it to going after the Mafia in the Italian community, or the Russian mob. He plans hearings Thursday on the radicalization of American-Muslims. And critics say that the hearings are unfairly targeting Islam, but King says it's about investigating something from within the Muslim community that poses a threat to the United States.

Well, these hearings are generating huge debates even before they happen. Protesters turned out in New York over the weekend. Some were for the hearings, and some against.

Joining me from Capitol Hill is Indiana Congressman Andre Carson.

Mr. Congressman, thank you so much for joining us.

REP. ANDRE CARSON (D), INDIANA: Thank you.

MALVEAUX: First, you're Muslim. Congressman King says that al Qaeda's attempting to recruit Muslims in the United States, infiltrating your community.

If the hearings are aimed at routing out these terrorists, those people preying on your community, what's wrong with that?

CARSON: I think it's important. You know, there's no doubt about it, having worked in homeland security in Indiana, there is a serious threat in our country with regards to terrorism, and those bozos who associate themselves with the religion of Islam.

However, having said that, if we're going to have hearings on terrorism, let's have hearings on terrorism across the spectrum. We're talking about neo-Nazi organizations, we're talking about skinheads, we're talking about tax protesters, not just Muslims. I think that's where the hearings become misguided.

MALVEAUX: He says that there are comparable examples in history that there's been explorations of the mob with the Italian community, or the Russian community, or Coney Island.

Why not focus on this particular threat?

CARSON: Terrorism is serious in this country. Let me tell you, having worked in homeland security, a study was released several months ago. And Islamic jihadists ranked at a distant 11, led by skinheads, led by anti-immigration movements, led by the Ku Klux Klan, and led by neo-Nazis.

There are serious issues that we have to focus on as it relates to the terrorism question. But we cannot isolate one group. And in doing so, will exacerbate existing hostilities and cause the opposite effect. That is where I am most concerned.

MALVEAUX: Congressman, Representative King says that there are examples to back this claim, that this is a serious problem within the Muslim community. He points to Major Nidal Hasan in the Fort Hoot shootings, or Faisal Shahzad, accused in last May's attempted Times Square bombing. We've heard from Homeland Security Secretary Janet Napolitano, testifying before Congress, that homegrown terrorism is a huge threat here.

Do you see his point?

CARSON: I see Secretary Napolitano's point. Homegrown terrorism is a threat. She didn't say Islamic terrorism is a threat. Islamic terrorism -- so-called Islamic terrorism -- is a threat, those who claim to be Muslims. But homegrown terrorism is a threat.

We're talking about parts of this country, groups, who are practicing every day for race wars, groups who are attacking minority men, women and children, all in the name of some racial purification. They pose a greater threat statistically and more so than so-called Islamic groups.

Homegrown terrorism is a threat. I think we have to look at the facts here. Seven out of the last ten al Qaeda attempts to disturb our internal security have been thwarted and disrupted with the help of Muslims and cooperation of Muslims. Law enforcement has reached out --

MALVEAUX: There's no denying that. But I'm wondering with Congressman King's point is that there are some examples that al Qaeda has successfully been able to go ahead and radicalize some in the Muslim community. That there are examples there that at least Homeland Security and people like you and I should look at.

CARSON: Absolutely, absolutely. There are serious threats in this country as it relates to so-called Muslims or people who identify themselves with the religion of Islam. A small minority that has to be isolated, a small minority that has to be dealt with effectively and a small minority that must be monitored.

Now, having said that, we have right now where officers can get national security letters without a court order to monitor Muslims and different groups. This is problematic in a free and civil society. I hope that these hearings expand, they become expansive, and we bring in other groups that are posing a serious threat. I think about Timothy McVeigh as just one example and other groups.

I'm telling you right now that Muslims are working each and every day in cooperation with law enforcement to help make our country a safer place.

MALVEAUX: Congressman, we appreciate your time. Obviously, we're going to be all over those hearings that are taking place on Thursday to find out if there is any good that comes from them. We know that there are going to be a number of Muslim leaders as well as your fellow congressmen, Muslim congressmen, who will be participating in those hearings.

We really appreciate your perspective. Thank you.

CARSON: Absolutely. What a pleasure. Thank you. MALVEAUX: Well, later this month, CNN's Soledad O'Brien looks at the question does freedom of religion mean freedom from suspicion? The dramatic fight over plans to build a mosque in the heart of the Bible Belt. "UNWELCOME: THE MUSLIMS NEXT DOOR," Sunday night, 8:00 eastern, march 27th.

At just 20 years old, she became police chief of one of Mexico's most dangerous cities. Now Marisol Valles Garcia is saying no mas. We'll tell you why she's done with this job as well as her country.

(COMMERCIAL BREAK)

MALVEAUX: Well, she was just 20 when she took on a very dangerous job: police chief in a Mexican town plagued by drug- trafficking violence. But an immigration official is now telling CNN that Marisol Valles Garcia has now fled Mexico for the United States.

Our Rafael Romo has the story. And do we know, first of all, whether or not she's fleeing from anyone or any threat?

RAFAEL ROMO, CNN SENIOR EDITOR OF LATIN AMERICAN AFFAIRS: Well, so far what we have confirmed is that she is indeed in the United States. No confirmation that she's actually seeking asylum, but I don't know what else she would be doing if she's not doing that. And we don't even have confirmation of exactly where she is. We are assuming that she is in El Paso because it would be the closest point of entry to the United States.

She has been missing for about a week. Last week, she spoke with the town officials in the town where she was a police chief and said, "I need a few days off because my baby." She has an 8-month-old baby. "He's a little sick, so I need to take him to the doctor." The leave of absence was granted. She was supposed to come back to work on Monday. When she didn't show up, town officials decided to terminate her.

MALVEAUX: Do we believe that the baby is with her? Does she have a little baby with her?

ROMO: We have every indication that the baby is with her. She left her house. The lights are on. Didn't tell anybody. Didn't consult with anybody. Town officials were apparently surprised that she made a decision to leave. And she had a phone provided by the town that she was not picking up. And so when she didn't show up anywhere on Thursday, everybody started wondering. And we spent a day or two trying to just get confirmation of where she was. But nobody would say anything.

MALVEAUX: Do we know -- when I first heard this story, it was very surprising. This 20-year-old who is now police chief of this major drug town. Do we know, was that in name only? Was it a symbolic gesture, or did she have any kind of responsibility in terms of taking on the cartels?

ROMO: She was not a police chief in the conventional sense of the word. She was more of what we would know here in America as a liaison, a community liaison. She was not armed. She had a force of less than a dozen police officers, --all women, interestingly. Not a single one of them carried a weapon.

And so, when we spoke with her - and I've told her over the phone -- she said, my role is that of somebody who is going to go out, talk to the community. If we have any threat or possibility of crime getting out of control in one of the areas of the town, we're going to address that. Talking to people, talking to families and see what we can do to make things better.

But from the beginning, she said, I am not going to go and get in the middle of a shootout between the drug cartels in that area and police officers. I'm going to leave that up to state police.

MALVEAUX: All right. Rafael, thank you. If you have any more details, please bring them to us. It's a mysterious and confusing story around this. Thank you.

ROMO: Absolutely.

MALVEAUX: OK.

An interactive marketplace for sharing and selling individuality. Zazzle, it's called, is a magnet for people who like to stand out. So, we're going to take you inside the world of instant customization.

Also, winning a game show may get you more than just money. It could put you in the political spotlight. We wanted to know, which "Jeopardy" contestant was asked to run for the U.S. Senate? Was it Brad Rutter, Ken Jennings, Tom Nissley or IBM 's supercomputer, Watson? [

(COMMERCIAL BREAK)

MALVEAUX: So, which "Jeopardy" contestant was asked to run for the U.S. Senate back in 2004? The answer: Ken Jennings. Jennings said Senators Chuck Schumer and Harry Reid tried to recruit him to run for Orrin Hatch's seat. He said, quote, "I'm not making this up. Win on a game show, and you can apparently run for the U.S. Senate."

Well, putting your stamp on just about anything and sharing it almost instantly with the world -- it's a feature that's made Zazzle one of the hottest software companies in Silicon Valley right now. Silicon Valley correspondent Dan Simon joins us to plug us in. Dan, tell us about this.

DAN SIMON, CNN CORRESPONDENT: Hi, Suzanne. What we try to do with these segments each week is find technology that can change an industry -- disrupters, as they call them. We think we have them here at Zazzle. Essentially all you need is your computer and your imagination and you can instantly customize a product. Everything you see in this room is the creation of others. And they've seen an uptick in business thanks to a certain Hollywood celebrity.

(BEGIN VIDEOTAPE)

SIMON (voice-over): Ever since Charlie Sheen's media blitz --

CHARLIE SHEEN, ACTOR: It's been a tsunami of media. And I've been riding it on a mercury surfboard.

SIMON: -- the machines at Zazzle have been churning out the actor's now famous quotes. "Duh, winning!" has turned out to be a winner for the Silicon (AUDIO GAP). Welcome to the world of instant customization.

JEFF BEAVER, ZAZZLE CO-FOUNDER: Literally within minutes of anything topical or newsworthy, people are creating designs and selling them and they're publishing them to the world.

SIMON: Jeff Beaver is a company co-founder. Since the Web site launched in 2005, Zazzle has become a nine-figure business, from iPhone cases to T-shirts to stamps to shoes.

BEAVER: You can actually on Zazzle specify the exact thread color.

SIMON: The company allows you to customize as many as 50 different products. Guitar cases coming soon. You can have most of these products shipped to you next day.

BEAVER: The common thread amongst all of our customers, it's individuals who prefer to stand out, who want to be different. Customization enables anybody to be truly unique.

SIMON: And users browsing the site can buy or further customize someone else's design. The creator then gets a cut of the sale.

(on camera): What percentage of the sale does the creator get?

BEAVER: More than you would expect. Long story shot, you can make anywhere from 20 percent to 50 or 60 percent of a sale without ever touching it.

SIMON (voice-over): So how difficult is it to customize a product? CNN's Silicon Valley is our new bureau.

(on camera): We're going to select this guy right here.

(voice-over): So we wanted to make a few things to go along with it. Upload the graphic, insert some text, choose the product. The factory's machines get it all from the Internet and go to work. The gear is done.

BEAVER: We have about 150,000 new products created and published every day. 150,000. So like every second, products are being published to the world.

(END VIDEOTAPE)

SIMON: And here is the end result of our little project there, CNN Silicon Valley on an iPad case. And Suzanne, I don't know if you remember this, but last week you took a picture with your team. And your executive producer, Jenny, e-mailed me these photos.

MALVEAUX: I did! Oh, God!

SIMON: And you can see what we got here. Team Malveaux --

MALVEAUX: Wow! No way!

SIMON: On an iPad case.

MALVEAUX: So that's what was behind that.

SIMON: That's the traditional photo. And as you can see here, this is the fun pose. We have a whole bunch of these to send you. I don't know if you have an iPad --

MALVEAUX: I do! Dan, that's fantastic.

SIMON: But here's a reason now to get one. Also, a Team Malveaux coffee mug.

MALVEAUX: I've been waiting for a mug all these years.

SIMON: We'll make sure you get these in the mail.

MALVEAUX: All these years, I've got a mug now.

SIMON: You bet.

MALVEAUX: Dan, thank you so much. That was so sweet. I really appreciate that. Dan Simon, thanks.

Well, it is Fat Tuesday. Mardi Gras. And the parade's just getting started in New Orleans. One Mardi Gras tradition you may not have heard a lot about, the Mardi Gras Indians. They wear these elaborate beaded costumes and spend the entire year hand making them. These guys are not actually Indians. We're going to tell you who they are and the fascinating reason they started this tradition.

(BEGIN VIDEOTAPE)

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Time now for "The Help Desk," where we get answers to your financial questions. With me this hour, Ryan Mack. He's the president of Optimum Capital Management. And that's Doug Flynn. He's a certified financial planner and founder of Flynn Zito.

Thank you guys for being here. Our first question is from Katie. She's in Alaska. And she writes, "I'm about to graduate from college and want to refinance my school loans so that I only have one large payment. What criteria should I keep in mind when looking for a bank to refinance with?"

What do you think, Doug?

DOUG FLYNN, CERTIFIED FINANCIAL PLANNER: Well, you have to watch variable rates because that can really cost you as rates go up over time. And so want you want to do is you want to take a look and sometimes the lower rate might be the variable. But what you want is a fixed rate that's going to be as long as you possibly can pay it back with no prepayment penalty. And that's really what you want to do is shop between the banks and find one with the longest fixed rate, longest time and no prepayment and that's the best option for you.

ELAM: And that's what she should do.

All right. Going on to our next question which comes to us from Whitney in North Carolina. She writes, "my husband may get laid off soon. We should get about $20,000 from retirement and paid leave but have so many bills to pay. How should we use the money to get us to the next job?"

There's a lot of questions. This is a question a lot of people have, Ryan.

RYAN MACK, PRES., OPTIMUM CAPITAL MANAGEMENT: Well, this is definitely a great concern for many families. But this question really just highlights the fact of why we need an emergency fund and why we have to live not (INAUDIBLE) so close to our means that when times like this do happen, that we have a little cushion that we can land upon.

So what they have to start doing is downsizing as fast as possible. Looking at their budget. Seeing which bills they can reduce. How many credit card companies can they call and negotiate those interest rates lower. How many bills that they have created that they can eliminate completely.

Maybe get rid of that cell phone bill. Maybe get rid of that additional cable bill. Maybe only get basic service. So these types of things and more. Maybe additional income streams in terms of additional jobs they can do on the side to start making additional capital. And maybe he should start going to get some community service -- community classes at the community college to get additional training and improve his resume a little bit and start shopping around for an additional job.

ELAM: Yes, and he's getting that resume out as quickly as possible.

MACK: Exactly.

ELAM: All right. Thanks so much for helping us out today, gentlemen.

If you have a question that you want to get answered, we'd love to help you out. Send us an e-mail any time to cnnhelpdesk@cnn.com.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

MALVEAUX: So what is a Mardi Gras Indian? Well, actually, they're African-Americans from New Orleans who are paying their respects to Native Americans. They hand sew these elaborate costumes and have dance competitions between chiefs from different neighborhoods. The tradition honors the role Native Americans played in assisting escaped slaves.

Well, it is time to test your news IQ. We're taking some of the stories making headlines and quizzing a CNN correspondent. We're going to bring back Dan Simon, who had that great picture of our team -- it's a crazy, wonderful team -- for the CNN Challenge here.

Dan, are you ready?

SIMON: I'm ready. Let's do it.

MALVEAUX: OK. Oil prices fell slightly today on reports that OPEC would increase its oil supply. So, give us the all-time high for a price of oil. Just a barrel of oil. Is it $102, $128, $147, or $185?

SIMON: Hmm. I'm going to say c, $147.

MALVEAUX: Wow! You did great. That's true. $147.27, all-time high hit on July 11, 2008. Good, Dan.

Next question. People living in certain areas of the United States are more likely to develop diabetes. The so-called diabetes belt is which region of the country? Is it the Northeast, south, west, or, d, Midwest?

SIMON: Hmm. Well, I grew up in the Midwest. So it's not the Midwest. I'm going to say south.

MALVEAUX: You're right. People living in the southern part of the United States have diabetes rates above 11 percent compared to 8.5 percent for the rest of the country. Still working on getting that health together.

Final question. Which state is the happiest in the country? Is it Hawaii, Utah, Florida or Alaska?

SIMON: That's a good question. I don't know. I'm just going to guess Alaska on that one.

MALVEAUX: The answer is Hawaii.

SIMON: Wow!

MALVEAUX: I'm sure people are happy in Hawaii. They get to surf. There's lovely, you know, weather. Six categories that they looked at of well-being. The state that came in last was West Virginia.

Dan, you did pretty good there.

SIMON: Thanks very much. And, one more time, check this out. We also have the team Malveaux t-shirt. You didn't see that one.

MALVEAUX: I didn't even see the t-shirt. You know what, we might have to -- we might have to sell these. You know, we might have to hawk these. I mean that's a great team. I love that team.

SIMON: Exactly.

MALVEAUX: Go team Malveaux. Thank you, Dan. Who knew?

SIMON: You got it.

MALVEAUX: All right, we got t-shirts for the team. Thanks, Dan.

SIMON: Sure.

MALVEAUX: British lawmakers were not running the country today, but they were running pancakes. Look at this. The lords won this year's parliamentary pancake flipping race, spelling defeat for the House of Commons. The annual race raises money for people with brain and spinal injuries.

Well, the next time you're stuck at the airport, wouldn't it be great if there was some sort of '80s icon who put on a show?

(BEGIN VIDEO CLIP)

CYNDI LAUPER, MUSICIAN: But, daddy dear, you know you're still number one. But girls they want to have fun. Oh girls just want to have fun.

(END VIDEO CLIP)

MALVEAUX: OK. That's Cyndi Lauper, I'm sure you know, under the head scarf and the big sunglasses. She was incognito at the Buenos Aires Airport. But once her cover was busted, she didn't disappoint, "Girls Just Want To Have Fun."

Well, our producers, they're tallying up the votes. Your "Choose The News" winner, that's up next.

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MALVEAUX: Now your chance to "Choose The News." The winning story now. A former state trooper is teaching teens chess. It's his way of engaging at-risk kids and taking a bite out of juvenile crime. Our CNN's Randi Kaye has the story.

(BEGIN VIDEOTAPE)

ORRIN HUDSON, BE SOMEONE FOUNDER: I am --

CLASS: I am.

HUDSON: Somebody.

CLASS: Somebody.

HUDSON: I am --

CLASS: I am. HUDSON: A champion.

CLASS: A champion.

RANDI KAYE, CNN CORRESPONDENT (voice-over): After seeing a news report of several people being shot in a store robbery for just $2,000, Oren Hudson, a former state trooper, was compelled to action.

HUDSON: And I said to myself, our young people are going off on the wrong cash. That we need to teach young people kash with a "k." K for knowledge, A for attitude, S for skills and H for habit.

KAYE: So he founded Be Someone, an organization that teaches kids how to succeed in life through the game of chess.

HUDSON: Chess is like life because there's no blame in the game. I'm responsible. I will win or lose based on the decisions that I make. And if I make the wrong move, I get the wrong result. And I can make one move and never recover. So you want to think things through before you move, because one move could cause you the game.

KAYE: But in an era where technology is king, Hudson knows this board game might not stack up with the latest video game.

HUDSON: Shake hands. Gentlemen's game.

KAYE: So he offers a fun challenge that always gets their attention. Cold hard cash.

HUDSON: Oftentimes I put $1,000 on the table and I say hey, look, anybody beats me, you get $1,000. And I got their attention. And I whip out the $1,000 and I show them and they go, OK, I'll play you.

KAYE: He knows the kids won't win, but that's OK, as long as they learn that every move has a consequence, just like in life.

HUDSON: That's how I learn.

UNIDENTIFIED MALE: That's how I learn.

HUDSON: I succeed --

UNIDENTIFIED MALE: I succeed --

HUDSON: By learning.

UNIDENTIFIED MALE: By learning.

HUDSON: Make it OK.

UNIDENTIFIED MALE: Make it OK.

HUDSON: To fail.

UNIDENTIFIED MALE: To fail.

HUDSON: Give him a hand, class.

Who's next?

KAYE: And after losing time and time again, the money doesn't seem to matter.

HUDSON: $1,000. Can he win it?

KAYE: Because chess teaches kids to focus, think on their feet, plan ahead and look at things from the other person's perspective. But there is one more move Hudson wants every kid to learn.

HUDSON: It's less about chess. It's more about making good decisions. It's more about creating value. It's more about never take. The good you do comes back to you. The bad you do will be sad for you. Every move you make has consequences. And if you make the right move, you will get the right results.

KAYE: Decisions that will hopefully change the world one move at a time.

Randi Kaye, CNN, Atlanta.

(END VIDEOTAPE)

MALVEAUX: CNN NEWSROOM continues right now with Ali Velshi.

Hey, Ali.

ALI VELSHI, CNN ANCHOR: Suzanne, have a great afternoon. Thanks so much.

MALVEAUX: You too.