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Possibility of Government Shutdown Draws Nearer; 7.4 Magnitude Aftershock in Japan; Impending Government Shutdown Could Affect Housing Market; One of Gadhafi's Sons Facilitates Interview with Alleged Libyan Rape Victim
Aired April 07, 2011 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: It is 7:00 a.m. out west, 10:00 in Washington -- where there is no deal on the budget with the clock ticking toward the deadline. The government could shut down at midnight Friday, 38 hours from now. 800,000 federal workers would be furloughed. Military paychecks would be delayed. Same with some tax refunds.
The body of a second American has been found in the ruins in Japan. Monty Dixon of Alaska taught English at schools in Japan as part of an exchange program.
And another air traffic controller is accused of sleeping on the job. Authorities think he might have snoozed for five hours as planes tried to land in Tennessee. The FAA intends to fire him.
The budget drama is going down to the wire. Fewer than 38 hours until the deadline and a possible government shutdown. President Obama says he will call congressional leaders this morning and urge them to hammer out something if they don't make some progress. He will call for another White House meeting tonight.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: There's no reason why we should not be able to complete a deal. There's no reason why we should have a government shutdown.
(END VIDEO CLIP)
COSTELLO: Bitter political rivals, House Speaker John Boehner and Senate majority leader Harry Reid, stood shoulder to shoulder to give a progress report. It's something you don't see very often - them together.
(BEGIN VIDEO CLIP)
SEN. HARRY REID (D), SENATE MAJORITY LEADER: I have confidence that we can get this done. We're not there yet, but hope lies eternal.
REP. JOHN BOEHNER (R), HOUSE SPEAKER: There's an intent on both sides to continue to work together to try to resolve this. No one wants the government to shut down.
(END VIDEO CLIP)
COSTELLO: It's what they all say. Let's head to Capitol Hill and Brianna Keilar. So Brianna, what is everybody doing today to make sure the government doesn't shut down?
BRIANNA KEILAR, CNN CONGRESSIONAL CORRESPONDENT: Well, certainly the negotiations are continuing. And you heard last night positive tones coming from Democrats and Republicans and President Obama. So that's that. We're keeping an eye on that, trying to see if there's any movement or any agreement on the deal.
In the meantime though, Carol, we're expecting to see some action on the House floor. House Republicans have - are going to put on the floor a stop gap spending measure that would fund the government for one more week. It would have $12 billion in cuts. This is quite a big deal because recently in the last several weeks, we've seen spending cuts to the tune of $2 billion a week. So this is six times that amount.
Democrats obviously aren't going to like that. There's also another thing in this, Carol, and we've talked about this. It would fund the Department of Defense through the end of the year. Why does that matter? Because Republicans are now saying this is a troop funding bill. Of course, one of the worst visuals out of a government shutdown would be military families. Military men and women who wouldn't get paid beyond Friday.
And so this way they're actually kind of saying to the Senate, "Hey, we dare you to vote against this or to not take this up." And it also gives some cover to maybe some House Republicans who didn't want to sign on to this. Carol.
COSTELLO:. So that's become a political football, too, in all of this. I mean, are the sticking point the same?
KEILAR: They are the same. Of course, we've talked about the number, right? Just what kind of spending cuts, what is the amount of spending cuts the Democrats or Republicans can agree on. But there's other moving parts here, and it has to do with some hot button social issues. There are not just numbers in this bill. There are policy provisions, particularly a couple that House Republicans want. One to defund health care reform which is the president's number-one legislative victory. And also another one that would defund planned parenthood.
Republicans say to make sure that federal dollars don't go to pay for abortions. Democrats counter they already don't. But these are obviously hot button issues that create quite a partisan divide. And the White House and some Senate Democrats have said that these are deal-breakers for them. So those are all of the moving parts in this process.
COSTELLO: OK. I know you'll be there all night. So thank you, Brianna, we appreciate it. President Obama says a government shutdown would hurt everyday people. We decided to ask some of them for their thoughts on the political sparring that seemingly goes hat-in-hand with the budgetary process.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: You have to put in your two cents. Then people have to listen and work it out. It seems like we've gotten to the point where that has stopped. And that's unfortunate. It almost seems juvenile.
UNIDENTIFIED MALE: Let them stick at it and try and get the thing resolved. You know, they've got to realize that - who they're hurting.
UNIDENTIFIED MALE: There's all this partisan action to try to keep their own policies in place, and it really ignores the bigger problem which is just making the government work smoothly and efficiently.
(END VIDEO CLIP)
COSTELLO: Anyone listening on Capitol Hill? Senator Harry Reid, the democratic leader is now speaking on the floor of the senate. Let's listen in.
REID: ... cause the government to shut down. We met last night, the Speaker and I, with the president for quite a long time. Hour and a half or two hours. A meeting was initially one with the president, vice president, Speaker Boehner, and myself were present to work through these issues. We then went into a meeting with our staffs to try to work through these issues.
The numbers, Mr. President, are basically there. That's where we are. My staff, the present staff, the Speaker's staff, worked through the night to try to come up with an appropriate way to end this impasse. And I repeat, Mr. President, the numbers are basically there. But I am not as nearly as optimistic - and that's an understatement - as I was 11 hours ago.
The numbers are extremely close. Our differences are no longer over how much savings we get on government spending. The only thing, the only thing holding up an agreement is ideology. I'm sorry to say, Mr. President, that my friend the speaker and the Republican leadership have drawn a line in the sand. Not dealing with the deficit that we know we have to deal with, that we've made significant cuts, not with the numbers that would fund the government to the end of this fiscal year. That's not the issue.
The issue is ideology. Not numbers. And there are a number of issues, but the two main issues that are holding this matter up are - the choice of women, reproductive rights. And clean air. These matters have no place on a budget bill, Mr. President. This is a bill to keep the government running with dollars. They want to roll back the clean air act. The bottom line is this - if we're - we are going to sit down at the negotiating table as we have and fund the government, it should be based on government funding. I know there are some rambunctious new members of the House of Representatives over there, and they're their are probably some that have been there a long time who are mother nature senior, Republicans, this - who are more senior, Republicans, and this is their time to shine.
But do that in legislative manner. Don't do it on a spending bill. They can send us stuff, we'll get over here, we'll get to it when we can, to show that we can get to things. We've done it on this clean air bill. Difficult issues dealing with 1099, that's government issues relating to the health care bill. It's tough, we did it.
COSTELLO: OK. We're going to jump away. You heard Senator Harry Reid going over the same things that we've been hearing in the past couple of days. They just can't come to an agreement. As Brianna Keilar told you, it's over the very same issues. We'll keep following it throughout the day. So the clock is ticking. If the parties can't find common ground soon, the money will stop flowing down to you. Christine Romans shows us exactly what that means.
(BEGIN VIDEOTAPE)
CHRISTINE ROMANS, CNN CORRESPONDENT: For starters, the IRS will close. That means many people waiting on refund checks will have to keep waiting. Processing of paper tax returns and refunds will have to stop. And you're going to have - you're going to have those electronic filings of refunds will continue.
However, social security checks will still go out. So seniors who are concerned about this, remember, your social security check will still come. Medicare also will pay claims. That will continue to fund. And Congress, aren't you all so happy? Congress will still get paid. Now if the government shuts down for an extended period of time, then we've got some other issues here that are really concerning in this debate.
The Defense Department says troops including those fighting in Afghanistan and in Iraq will not be paid. At least on time. They will continue to accrue their pay and their earning, but they will not be paid on time. It will be devastating for small business. The government will not be able to back up loans for small business. And for struggling homeowners also, you've got the government backing of mortgages. That's about a third of the entire mortgage market. The processing of those loans would be suspended. Also the government is still, though, and this is important - still going to make sure that its federal funding of the school lunch program continues. So that will remain the same.
(END VIDEOTAPE)
COSTELLO: Christine Romans trying to explain it all to make it clear. Very much thanks. Christine Romans.
We're going to take a quick break and talk more about these air strikes that happened in Libya. Killed some rebels on the ground. Who was at fault? We'll try to ferret that out, next.
(COMMERCIAL BREAK)
COSTELLO: More on the rebel retreat in Libya. Rebel fighters and civilians are fleeing Ajdabiya after rumors that Gadhafi's forces are charging the city. Ben Wedeman is in the middle of a sandstorm in east - it looks terrible, Ben. But can you tell us what's been going on?
BEN WEDEMAN, CNN SENIOR INTERNATIONAL CORRESPONDENT: What you can see is cars coming out of Ajdabiya. At the moment it looks like mostly civilians. Earlier we saw a lot of the fighters leaving as well. This was after word went around although nobody actually saw it that Gadhafi's forces had reached the western gates of Ajdabiya. But this came several hours after this alleged, reported NATO air strike on opposition forces which were about halfway between Brega and Ajdabiya.
We were in the hospital where we saw two bodies from the air strike. And then we saw another doctor who came to the hospital critically wounded and then died. So at least three people killed in this strike. More than 10 wounded. According to eyewitnesses we spoke to Carol, who were there at the time, they said they heard an airplane overhead. And then after about five minutes, the airplane returned and fired several missiles on their convoy which included a few tanks.
After the first strike, ambulances rushed to the scene of the attack and there was a second strike. So we still don't know the final death toll from this incident. But it's extremely demoralizing for the anti-Gadhafi forces who were hoping that NATO would support them. Now they're complaining that NATO's actually attacking them. Carol?
COSTELLO: Ben Wedeman, I'm going to let you get out of that sandstorm. Thanks for the update. Appreciate it as always.
Turning back to the federal government now. Because the federal government is just about a day and a half away from grinding to a standstill. Lawmakers are still fighting over a tiny sliver of the budget. Among the sticking points, funding for planned parenthood. There's a lot of back and forth and whether taxpayer money is really being used to fund abortions. So we want to lay out what's true before we really dig into this issue.
In 2008 there were over a million abortions performed nationwide. Planned parenthood provides only a fraction of those procedures, about 330,000 abortions in 2009. So you may be wondering how much of your tax money goes to planned parenthood. Well, in 2009, it got $330 million from Uncle Sam. But an amendment that keeps any of that money from being used for elective abortions. So no federal tax dollars pay for elective abortions at Planned Parenthood facilities.
I want to bring in Senator Jeanne Shaheen now. He's a Democrat from New Hampshire. Thank you very much for joining me. SEN. JEANNE SHAHEEN (D), NEW HAMPSHIRE: It's good to be with you. As you pointed out, 97 percent of the services provided by Planned Parenthood are preventive services. They're cervical and breast exams. They are family planning services. The suggestion that Planned Parenthood and tax dollars are used for to provide abortions is just a red herring.
COSTELLO: Well, you know, if I'm a person who believes abortion is murder though even though I know that no federal tax dollars will pay for abortions performed at Planned Parenthood facilities, just the fact that they go on might disturb me. So what answer would you give to those people?
SHAHEEN: Well, Roe v. Wade is the law of the land. And Planned Parenthood and the services provided by Planned Parenthood provide health services to women throughout this country. In my home state of New Hampshire, we have thousands of women who get their health care through Planned Parenthood. So what you're going to do is cut them off from the health care that they need, and it's going to ultimately costs more money. Because we know preventive care is the least cost, best way to provide health care.
COSTELLO: Why do you think that this has become such an issue in the budget battle? Is it purely an ideological issue or is it more of a fiscal responsibility issue?
SHAHEEN: No, absolutely not. This is purely an ideological issue. This is not about dealing with the debt and the deficit in this country. We can agree on a number, and we've already heard that that's happened between the House and Senate. The problem is every time the Senate agrees to that number, the House moves the goal post and increases the amount of cuts. And they continue to be committed to these ideological riders on the bill that would do things like defund title 10 services which are health services and family planning, reproductive services for women in this country.
COSTELLO: Here's the thing that I think confuses some voters. There's supposedly this number that Democrats and Republicans agree with. But it's unclear what programs the Democrats want to cut. I mean, at least the Republicans have an idea of what programs they think ought to be cut. So if planned parenthood should not be defunded, what should be defunded?
SHAHEEN: Well, you know, there are $78 billion in defense cuts that Secretary Gates has already said we should take a look at. I think we should put those on the table. The Defense Department has agreed those are cuts that we can look at. So I think we ought to start with places that we've got some agreement on what should be cut. The fact is we need to deal with the debt and the deficit in this country. There's no doubt about that. But we need to do it in a way that looks at mandatory programs, that looks at tax reform, and that recognizes we are not going to deal with the country's debt just by cutting 12 percent of the budget that's nondefense discretionary spending.
COSTELLO: Congresswoman Shaheen, thank you so much for joining us this morning. We appreciate it.
SHAHEEN: Thank you.
COSTELLO: A government shutdown would really make a lot of spring break tourist upset in Washington. We'll get a live update from the Smithsonian's Air and Space Museum.
And Donald Trump's political star may be rising but don't call him a presidential candidate just yet. Find out what he says is holding him back and how he lit up the Twitter world today. That's just ahead.
(COMMERCIAL BREAK)
COSTELLO: This just in. At 1:00 p.m. Eastern today, President Obama will meet with House Speaker John Boehner and Senate majority leader Harry Reid in the Oval Office. Vice president Biden will also be there, and they'll be talking about the budget, trying to avoid a government shutdown which both sides say they want to do. CNN will bring every development to you all day long.
Checking stories cross country now. In California, a vigil was held in the parking lot of Dodger Stadium for Brian Stowe, a passionate Giants fan who was viciously attacked by two men after a Dodgers game. Stowe remains in critical condition in a medically- induced coma.
In Oklahoma, a wildfire is spreading. About 250 firefighters are battling the flames from the ground and the air. At least 200 people in Spencer, just outside of Oklahoma City have been evacuated.
In Mississippi, meet rebel, the new mascot for the University of Mississippi. He made his first public appearance at a children's hospital. Students voted in the bear after Colonel Rebel, the school's former mascot, was criticized for looking too much like a white plantation owner.
A government shutdown will have a big ripple effect. It will impact tourist when non-essential services like parks and museums close down. CNN's Kate Bolduan is at the Smithsonian National Air and Space Museum in Washington. And Kate, what are people saying there?
KATE BOLDUAN, CNN CORRESPONDENT: Well, I tell you, as you can probably see and as we've been telling you, we are in the air and space museum. This is the busiest of the Smithsonian's 19 museums. They're also includes under the Smithsonian umbrella, the National zoo. Just after 10:00 a.m. it's very busy here already. But come 10:00 a.m. Saturday when the museum should open up, it's possible that they will not be opening their doors if the government shuts down. And it's not making people happy. Because this couldn't come at a worse time. This is the height of the tourist season for the Smithsonian's - for Washington.
I'm told by a Smithsonian spokeswoman that three million people visited the Smithsonian's museums and the National Zoo in the month of April last year. This weekend last year half a million people visited the Smithsonian Museums. And as I said, it's not making people happy with the idea of a potential shutdown and a shutdown of some of Washington's biggest draws. Listen to one man.
(BEGIN VIDEO CLIP)
It's a complete disaster. I mean, if these politicians that we elect can't get their acts together to come together and pass a budget, the idea that all of these people here enjoying the Air and Space Museum, the free Smithsonian institutions, that that wouldn't be available to the public is really a crime. We elected these people to do some work, not to have gridlock.
(END VIDEO CLIP)
BOLDUAN: Now, the reason that this museum and all the Smithsonian Museums would shut down, speaking about the entire Smithsonian institution. Two thirds of Smithsonian's employees are federal employees. 70 percent of the Smithsonian's institution funding comes from federal funding which gives people the opportunity to come to these museums for free. And that could all become to a screeching halt come Saturday, if the government shuts down.
The Smithsonians puts to me, they maybe small in the world of federal employees but they are huge in the world of tourism. And this being at the height of tourism season not making people happy. And you can see people just starting to stream in already this morning. We'll talk to more people to see what they think about the situation.
COSTELLO: Talk about a screeching halt to your vacation. Kate Bolduan, thank you very much.
COSTELLO: Today at 2:00 p.m. in the CNN "Newsroom," we turn the microphone over to the voters all across the country for their comments on the potential shutdown of our government. Watch "Countdown to Shutdown," a CNN "Newsroom" special beginning at 2:00 p.m. Eastern.
(MUSIC PLAYING)
COSTELLO: There are reports today that a couple of "Today" show anchors might be leaving. "Showbiz Tonight's" host, A.J. Hammer, has the latest, live from New York. So A.J., fill us in.
A.J. HAMMER, HLN'S "SHOWBIZ TONIGHT": Well, Carol, first the headlines have Meredith Vieira leaving the "Today" show. Now it's Matt Lauer's turn. According to reports from "Entertainment Weekly" and "TV Guide," Lauer planning to leave the show when his contract expires in 2012.
Now there's some speculation that Lauer is trying to reunite with his former today show co-anchor Katie Couric on a new project. NBC, of course, not too pleased at all that this is rumbling around. Here's what the network tells "Showbiz Tonight." " There seems to be an awful lot of speculation around news anchors these days, and it's not our practice to comment on any of it. Matt Lauer has a long-term contract with NBC News." And today, of course, Carol, this could be a negotiating ploy for Lauer to get some leverage for the new contract or maybe he just doesn't want to get up so early in the morning anymore. But either way, Carol, it is contributing to a rash of headlines these days that I am certain NBC would rather not be seeing.
COSTELLO: Oh, you're not kidding. Man, those hours are brutal. Also the network's primetime lineup could take a hit if, of course, Donald Trump is ever officially running for president.
HAMMER: And by the way, let me just go on the record as saying that's not going to happen. But I digress. Donald Trump was on "The Today Show" this morning. He said he can't officially announce his presidential campaign because if he did it right now they'd have to cancel "Celebrity Apprentice." Man, the show doing well this season. Obviously, that would leave another hole in NBC's lineup.
And that gives me the chance to tell you CNN will be hearing from "The Donald" in just a while. He'll be speaking with Suzanne Malveaux just after 12:00 p.m. Eastern but I wanted to get back to more NBC News this morning, a whole lot of it. There's also the chance the popular sitcom "30 Rock" may be going away. Alec Baldwin told "New York" magazine that next season will be the last for "30 Rock." He says he and Tina Fey will both move on when their contracts expire.
Now, this isn't the first time Baldwin has talked about leaving the show. Obviously it's still in production so we should probably take it with a grain of salt at this point. However, the show may have to adjust its production schedule heading into the fall because Tina Fey just revealed the happy news, she is five months' pregnant. Carol, we're all thrilled for her and her husband.
COSTELLO: Oh, that is awesome. Congratulations, Tina. And thank you, A.J., as always. If you want information on everything breaking in the entertainment world, A.J.'s got it tonight on "Showbiz Tonight" at 5:00 p.m. Eastern and 11:00 p.m. Eastern on HLN.
Next I'm going to talk with Eliot Spitzer and he's going to tell us what it's like to be inside a top political negotiation. I mean, he was a governor, after all. That's coming up on the NEWSROOM.
And if you're boss doesn't like you watching viral videos at work. Tell him you're doing it for the good of the company. We'll you about one scientists who can actually back that up.
(COMMERCIAL BREAK)
COSTELLO: Negotiators from both sides are working on an agreement to avoid potential government shutdown. President Obama will meet with the speaker of the House and the Senate majority leader at 1:00 p.m. Eastern today.
Workers around the country, both government employees and private contract workers, of course will be hurt by a shutdown.
(BEGIN VIDEO CLIP) UNIDENTIFIED MALE: It's going to be difficult. I have a child, a young son. And my wife is also working in commerce, so we'll be without both of our incomes. So, it may be difficult. Hopefully it won't last more than a couple of days.
UNIDENTIFIED MALE: If it's longer than that, I'll eat Ramen and do what I have to to kind of make ends meet.
(END VIDEO CLIP)
COSTELLO: One man who knows about the nitty-gritty of a political showdown is former New York governor and host of CNN's "IN THE ARENA," Eliot Spitzer. Welcome, Eliot.
ELIOT SPITZER, CNN HOST, "IN THE ARENA": Carol, thank you for having me.
COSTELLO: You know, I think most Americans are looking at this and saying, you know what? We put these guys into office to do their jobs, to keep the government running. They're obviously not able to do that. Is that's what's really coming across in the huge budget battle mess?
SPITZER: Well, that is certainly what's coming across. I think the public is upset. The public is rightly infuriated at a bunch of grown-ups who are acting like kids. We're saying, please, act like the grown-ups we expect you to be when we elect you to positions like the presidency of the United States or speaker of the House of Representatives.
Now understand, the backdrop to this --
COSTELLO: Eliot, is that difficult to do? Because you were a governor -
SPITZER: Sure, that is difficult to do.
COSTELLO: You have dealt with lawmakers, have had difficult negotiations. Do you forget about the voters for a time while you're negotiating?
SPITZER: No, you don't forget about the voters, and here's the reason -- there really is a titanic ideological battle playing out in this negotiation right now. If there were ordinary times when the two parties were reasonably close ideologically, then all of this could be resolved reasonably quickly and neatly and easily.
What you've got here is the Tea Party on the flank of John Boehner. John Boehner is waging a two-front war. John Boehner alone could go into a room with Harry Reid and negotiate this very easily. They're both deal makers, the quintessential inside Washington deal makers. The Tea Party is dragging the Republican party so far to the right, and there's a big piece of the Republican party that's saying we want to shut down.
So, John Boehner is balancing these two forces. The president is looking at him. Harry Reid, the leader in the Senate, the Democratic voice in the Senate is saying, "Come on, John, just do a deal the way we always do." John Boehner's looking over his shoulder, saying the Tea Party is going to put a knife in my back if I compromise.
That's why it's been so fraught with tension. And the realty is they will get a deal because both sides are risk averse. Nobody wants the fallout of there not being a deal. But Boehner is walking a tightrope here with the Tea Party.
COSTELLO: There's been a lot of criticism leveled at President Obama, too. I mean, he came into this battle late, didn't he? And he's calling lawmakers children and telling them to act like grown- ups. Does that really help in negotiations?
SPITZER: Well, look, I'm not going to say that that moment was good or bad. Here's what I would say in terms of critiquing the president's role. He utterly failed in a deeper way last year. Let's not forget -- and I say this to somebody who's a Democratic governor. The Democratic party controlled both houses of Congress last year and they failed to pass a budget. That was when they should have put in place a budget for this fiscal year, both it would have been the right thing in terms of governance and ideologically, they could have put their imprint on a budget.
They failed to do so for reasons that still have not been adequately explained to me. So, as a matter of his strategic sense, the president failed to use the power he had when he had it. Now he has thrown himself into a much more difficult negotiation. They lost the November elections. Lost the House of Representatives. And have lost control of a larger, strategic debate, which is why they're playing defense right now. All of the cuts are in areas the Democrats don't want to cut. John Boehner and the Tea Party are dictating the strategy.
COSTELLO: It sounds so much like the health care debate, doesn't it? That's what it reminds me of right now. What do you have on your show coming up?
SPITZER: Tonight, look, we're still going to be covering this, keeping everybody's feet to the fire. Both parties. We'll be saying do your jobs, drill them down to explain to the public what is really going on.
Plus, let's not forget Libya. You know what? The opposition forces there are being routed. We're focusing on the budget debate here at home as we should. Let's not forget in Libya, the opposition forces are being pushed back by Moammar Gadhafi. What does that mean long term?
COSTELLO: Eliot Spitzer, thanks for joining me this morning. I appreciate it.
SPITZER: Always a pleasure. Thank you, Carol.
COSTELLO: An impending shutdown of the federal government could have an impact on the housing market. Alison Kosik is live at the New York Stock Exchange to tell us about it. Hi, Alison.
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Hi, Carol. I'll tell you what, the timing of it couldn't be more terrible for the housing market. Look at the market now. Sales for houses, prices for your homes are still falling, and a government shutdown could wind up making things a lot worse.
And here's why: the Federal Housing Administration won't be able to ensure mortgages. Now, what the FHA does is it backs loans. Means that private lenders wouldn't have that safe backstop that they like to have when they go ahead and approve loans. So, what will wind up happening is your mortgage applications wouldn't be approved. It means your closings could be delayed.
And this has huge implications. It could wind up affecting five million people, especially if they're a first-time homebuyer. FHA loans are popular with them because they don't require a big down payment. Now, the point that I'm talking about actually caught President Obama's attention in Pennsylvania. Here's what he had to say.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: It may turn out that somebody who was trying to get a mortgage can't have their paperwork processed by the FHA. And now the person who was going to sell the house, what they were counting on, they can't get it.
(END VIDEO CLIP)
KOSIK: And it's this ripple effect that the president's talking about that's another big factor in this. It's not just about the buyer, Carol. The seller wouldn't be able to move either. You know, basically it winds up being a standstill. Everybody's in limbo. You can't move, you can't sell.
And the impact is really going to depend on how long this thing is carried out. If it's short term, it could just be a logistical annoyance. If it's longer term, it could have a big impact on the housing market. Carol?
COSTELLO: I know, it's hard enough to sell a house as it is these days. So talk about something --
KOSIK: Tell me.
COSTELLO: -- that will brighten our mood because I love this story. Workers are actually more productive after watching something funny?
KOSIK: But of course. Don't you know this? Go shop online. Tool around Twitter, a little Facebook. Yes. Wasting time at work online could be beneficial. At least if you look at this Danish study that was reported in Britain's "Daily Mail." It says that taking time out to watch a funny clip online could actually make workers more focused. The thinking here is that it gives people a break, it relieves stress, makes you feel better, more productive so you get back to work. And you can get going on all the work of the day.
Now keep in mind, though, of course surprise -- the study's not scientific or conclusive. But you know what, some companies do this already, Carol. Google actually gives its workers 20 percent time. That's an hour-and-a-half everyday they get to screw around online, do whatever they want.
COSTELLO: I'm doing that right now. That's why I'm not really listening to you.
KOSIK: Oh!
COSTELLO: My mood has improved!
KOSIK: Not listening to me?
(LAUGHTER)
COSTELLO: See? Thank you, Alison. Appreciate it.
KOSIK: Thanks.
COSTELLO: Checking our top stories now. Two of the legendary names in golf headline the ceremonial tee-off at the Masters. Arnold Palmer and Jack Nicklaus. Two soon-to-be legends leave this year's field (ph). But for the first time in over a decade, Tiger Woods not favored to win.
The weekly jobless numbers are out. The number of Americans filing for first-time benefits fell by 10,000 from the previous week.
And the body of a second American has been found in the ruins of Japan. Monty Dixon of Alaska taught English at schools in Japan as part of an exchange program.
We're watching Capitol Hill. Congresswoman Nancy Pelosi expected to speak any minute now about the budget battle.
(COMMERCIAL BREAK)
COSTELLO: Checking stories across the country this morning. A friend who is said to be close to the president has been arrested in a prostitution sting in Hawaii. Police say Robert Titcolme allegedly tried to solicit sex from an undercover officer and got busted.
Near Kansas City, a garage in dire need of a cleanup yields an incredible find. A classic 1966 Shelby Mustang nearly in showroom condition. The fastback is one of only 1,100 ever produced. It's expected to be auctioned off for thousands and thousands of dollars.
And this inspiring story from Maine, where fifth-grader Nick Maxim is celebrated for winning a national penmanship award. It's all the more notable since Nick was born without hands or forearms. The contest sponsors were so impressed with him, they've created a new category for disabled students with future winners to receive the Nick's Maxim Trophy. Pretty cool.
Two quick doses of health news. First, if you're a zombie without your coffee, if you're in love with a cup of joe, we might know why. It's in your DNA. Researchers found two genes linked to caffeine intake that compared genes and caffeine consumption of more than 47,000 people. So, drink that cup of joe.
And if you're watching calories, there's a new iPhone app for that. It's called Meal Snap. And it gives users the calorie count and food items - they photograph. For each photo, you get a ballpark calorie figure for one serving of the item pictured. I don't know how accurate that is, but hey, why not?
Next on CNN NEWSROOM with Suzanne Malveaux, a personal look at how the potential government shutdown would impact everyday Americans.
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UNIDENTIFIED FEMALE: If I don't get to come to work on Monday, I don't know how I'm going to pay my bills. And are they going to pay my bills for me, or are they going to pay the late fees on my bills that they pay me retroactively?
I guess they want me to tell my three-year-old daughter in the meantime that she can't eat. She'll will have to eat retroactively when I get paid again.
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COSTELLO: That's Lindsay Knapp. She's a civilian employee at Fort Bragg in North Carolina. We'll talk to her live about her frustrations.
Plus, he's an outspoken critic of President Obama and has even said he's considering a run for the White House himself. But you know that. Suzanne Malveaux will talk live with Donald Trump. You don't want to miss it.
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COSTELLO: I'm telling you, the misery just doesn't end for the people in Japan. A 7.5-magnitude quake hit Myagi, Japan. And guess what -- there is a tsunami warning in effect. Let's head to the weather center and check in with Bonnie Schneider. This is just so disturbing.
BONNIE SCHNEIDER, AMS METEOROLOGIST: It is. Unfortunately, we are going to see more earthquakes in the region, Carol. And generally speaking, when you have an earthquake that's large, a tsunami warning is issued almost as a precaution. But in this case, there is a tsunami warning for this area here, the Myagi region. Here's the quake. Let's zoom in right now, and we can show you as we pull it up on Google Earth the exact coordinates of where the quake was located
7.4, that's the preliminary magnitude. It's likely to be updated. Let's click on this, please, Monica. We can show you the actual coordinates of where it is. Magnitudes 7.4. And you see that the location isn't far from Sendai, where the quake occurred on March 11. The actual quake today is about 61 miles from Sendai.
Let's open up the scope and show you the proximity to the area of the coastline. That's one of the reasons the tsunami warning has been issued. And it is only issued for that one region in Japan at this time. It may be expanded, but right now that's where it is. This is very preliminary. It's just coming in to CNN that this earthquake has occurred.
It's large in magnitude and not that deep. The depth right now is estimated around 25 miles, which is considered fairly shallow. And unfortunately, that may indicate that there will be some movement and shaking felt.
But we're still getting the reports in, gathering information for you. This literally just occurred within the past couple of minutes. So, we'll have more as we continue to update you on it. But right now, there is a tsunami warning issued for parts of coastal Japan at this time. Carol?
COSTELLO: Bonnie Schneider, thank you very much.
The Libyan woman who says she was tortured and raped by forces loyal to Moammar Gadhafi is speaking out. You might remember last month, she burst into a Tripoli hotel to tell journalists her story, and then she was dragged away and taken into custody.
She is free now, and she gave her first on-camera interview to CNN's Nic Robertson. The exclusive interview, reported Wednesday, was facilitated by Moammar Gadhafi's son Saadi against the explicit wishes of the Libyan government. That's what we're told. As Nic explains, transmission of the interview was delayed almost 18 hours after the Libyan government insisted on reviewing the interview. A review that never came.
So, Nic, this is -well, every story out of Libya seems to be kind of strange. Tell us how this came about exactly.
NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: It is, Carol. And it is sort of surprising that one of Moammar Gadhafi's sons would actually facilitate an interview of Eman Al-Obeidy, given the huge interest that everyone has showed in the abuse that she suffered at the hands of regime loyalists here. The security infrastructure, state television, smear campaign against her. So, why would one of Gadhafi's sons help?
We don't really have an answer for that. But it was very, very clear that this was done against the express wishes of the government spokesmen here who denigrated us, told Saadi Gadhafi that we were liars as well. Saadi Gadhafi was sitting in when we did this interview. The interview lasted for about ten minutes.
There was one section in there where of Eman Al-Obeidy essentially said she gave her support to the people in the east of the country, Benghazi and Misrata, the places where the rebels were. Saadi Gadhafi said that would have to come out of the interview. of Eman Al-Obeidy agreed with that on the basis that we would report that this had been cut out, and Saadi Gadhafi accepted that.
So, that was the basis for this interview. Complete transparency organized by or facilitated by Saadi Gadhafi. Eman Al-Obeidy seeming recovered in part physically from her ordeals of being gang raped. She told us in graphic detail exactly what had happened to her.
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ROBERTSON: When you came to the hotel, you wanted to explain to journalists everything that happened to you. Can you explain and show to me what happened to you?
EMAN AL-OBEIDY, ALLEGED LIBYAN RAPE VICTIM (through translator): I was kidnapped by two cars belonging to the armed forces. And the Gadhafi brigades. They drove their normal patrol police cars. They dropped me of the patrol car because I am from the eastern province. And they asked me to ride in their car.
Then they took me. They were drunk in the car, and they took me to the residence of one of them where I was tortured, raped, beaten, and I was tied. When I was showing the journalists my hand bruises as a result of being tied, my hands and legs were tied up backwards for two days.
ROBERTSON: You're still quite bruised here.
AL-OBEIDY: There are a lot of bruises on my body as a result of the torture. People have blamed me for showing my body. They said how can she expose her body to people like that? Because I was depressed, and there's no way to show people how I was tortured. And the way I was tortured in. I was brutally tortured to the point of them entering weapons inside of me.
After two days, they would also pour alcohol in my eyes. When the Libyan government spokesperson came on and said that I was drunk and mentally challenged, he had not reviewed the case or seen the investigation. He just spoke without any knowledge. They just know how to lie.
ROBERTSON: Your situation has touched the hearts of thousands around the world. Why do you think that is?
AL-OBEIDY: So the whole world can know what's happening in Libya. Libya has lived for many, many years without media exposure, without exposing the facts. Let the world know what's happening. The world has felt for me and especially women because I was raped and kidnapped, which moves people. And at the same time, the truth is coming out. Nothing remains hidden.
ROBERTSON: Do you have a message for your parents and for the thousands that have supported you?
AL-OBEIDY: I would like to direct a message to my parents, that they keep pursuing my situation so that I can return home and be with them in the coming time period. And to stay strong.
I would like to thank everyone in the world who stood with me and monitored my case and felt sympathetic to my plight.
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ROBERTSON: She's still struggling to get her freedom, still struggling to be allowed to leave the country to get to meet with her parents. That's not at all clear that that's going to happen any time soon. Carol?
COSTELLO: Nic Robertson, we'll see much more of the interview throughout the day here on CNN. Thanks so much.
We want to head back to Japan and Tokyo and Martin Savidge because we've been telling you a 7.5 (sic) earthquake hit Myagi, Japan. And there's a tsunami warning now in place. What more can you tell us, Martin?
MARTIN SAVIDGE, CNN CORRESPONDENT: Well, Carol, this was definitely the strongest aftershock that we have felt since we've been here covering the aftermath of the original earthquake, a 9.0. This was a 7.4, so by any measure, that is an extremely strong earthquake or aftershock or however you describe it.
We're being told that TEPCO right now is currently checking the condition of the nuclear reactors there at the Fukushima Daiichi nuclear plant. That of course, has always been one of the ongoing concerns that there would be some strong aftershock that could destabilize what's already a very precarious circumstance up there with the four reactors. Basically you have three of them there, that they're barely able to keep under control under good conditions. So, once again, they are checking.
So far, no reports of problems up there, but again, it has always been a concern that this could rupture one of the buildings out there. It could rupture one of the storage tanks that's being used to hold radioactive water. So, they will definitely take that as a strong concern.
It is a tsunami alert, we should tell you. Not quite the level of a warning, but an alert that's been put out by Myagi prefecture. They were estimating that the wave could be anywhere from three feet or just above three feet. But again, waves can change depending on where they come ashore and what the lay of the topography is beneath the water. So, it is often not a precise science as they try to predict the waves. That's what we have right now.
Here in Tokyo, no major problems that we have been able to discern. The power is still on, and people seem to still be going about their business. It was a strong shake, but it wasn't a violent kind of destructive kind of force that we were feeling here. As we say, the biggest one since the major 9.0 on March 11.
COSTELLO: And just the psychological trauma that people are going through yet again with this tsunami warning, I can't even imagine.
Martin, stay right there. I want to head to our weather center and Bonnie Schneider so you can tell us more about this tsunami warning. Martin told us a little about it. What more can you tell us?
SCHNEIDER: It was issued by the Japanese Meteorological Agency, and we can show you on this map right here where it was for. It's for a specific region right here. This orange area is highlighted right here. This orange area is highlighted here where the warning is issued. The yellow indicates an advisory.
And what that means is that it's more for a very small, isolated area, a coastal area of Myagi. You see if we zoom in on this map, then it does extend further north along the provinces to the north and -- provinces to the north and south.
It's something we're watching because the earthquake location has been updated. So, let me take you to that right now. I can show you on Google Earth, and you'll see, there's two red dots because the information is kind of being shifted as we get more information. In fact, let's zoom in on the dot right now and you can see some the latest numbers as we click on it. And we can show you that the depth has been shifted and so has the magnitude. It is now 7.4 near the east coast of Honshu, Japan. And the depth has been adjusted to 25 -- 15 miles, excuse me, 15.9 miles deep. So, it's a little more shallow than originally reported.
And the other dots that you see on Google Earth are also recent aftershocks. And even though the original quake occurred on March 11, it's not surprising because it was so large and so destructive that we are seeing intense aftershocks. And you heard from our report in Tokyo that the shaking was felt as far away as from there.
No reports on size or indeed if there is a tsunami. But it is pretty standard if there is an earthquake that's this large so close to the shoreline that a tsunami warning would be issued. But it is issued once again for an isolated part of the coast of Japan, not the entire coast. Here's the Myagi -- you can see Myagi right here. So, it's this prefecture here, the coastal area, where the warning has been issued. And this is from the Japanese Meteorological Agency at this time.
COSTELLO: And Bonnie, you say there's a warning. So, what are the probabilities that people have to deal with this when it's a tsunami warning?
SCHNEIDER: A tsunami warning whenever it's issued means you need to immediately leave the coastline. That's the first thing you need to do , you need to seek higher ground. Because it's difficult to know the wave height with a tsunami warning, how it may come in. And it may just be a few feet or it could be much larger. And until it really comes onshore, you always have to take the most extreme precaution, as in move away from the coastline immediately.
As I mentioned, on the coastline of this Myagi region, that's exactly what's happening now. The warning is going off, and they are moving to higher ground.
COSTELLO: We hope so. Bonnie Schneider, many thanks.
SCHNEIDER: Sure.
COSTELLO: Martin Savidge is getting more information. So we let him go. We're going to take a quick break. We'll be right back.
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