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Rep. Weiner Hires Lawyer Over Tweet; Cyber War May Mean War; Home Prices Hit Eight Year Low; Serial Entrepreneur Cashes In; Obama to Name New Commerce Secretary; Are Americans Over Medicated?; A Better Mechanical Hand

Aired May 31, 2011 - 13:00   ET

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

RANDI KAYE, CNN ANCHOR: Hi, Suzanne, thank you very much.

We want to start with a bizarre controversy. Some are calling Weiner-gate. Congressman Anthony Weiner has hired an attorney to advise him on what to do next after a lewd photo of a man was sent from his Twitter account to a college student in Seattle.

The photo showed a man from the waist down in his underwear with an apparent erection. The photo and tweet were quickly deleted. Representative Weiner is denying he posted the photo, and says it was a prank by a hacker.

We caught up with the congressman again today to get some more answers, but this is what he said.

(BEGIN VIDEO CLIP)

QUESTION: Aren't you concerned that someone is looking at your sensitive information?

REP. ANTHONY WEINER (D), NEW YORK: I'm going to return to working on the things I care about. I participated in the story a couple of days now, given comments on it. This is a distraction, and I'm not going to let it distract me.

QUESTION: Did the capitol police say they're looking into it?

WEINER: I put out a statement about that in the past couple days, I've put out a couple of statements. I mean, I'm trying to -- I'm trying the best to -- I just spent a couple days cooperating, and you know, trying to help you do your job, but at a certain point I'm going get back to work, and I think we have reached that point today.

QUESTION: This distraction might go away if you answer some of the -- some of the questions out there.

WEINER: I'm not going to answer that, I'm not going to answer that.

(END VIDEO CLIP)

KAYE: Now, to answer part of that question for you, the capitol police and the FBI tell CNN they are not currently investigating the case.

Conservative blogger Andrew Breitbart got wind of the photo and broke the story on his Web site. Biggovernment.com is joining us now.

Andrew, thanks for coming on the show to talk about this. Congressman Weiner says that his account was hacked, that this was a prank. So, I have to ask you, since you were first to break the news on your Web site. How did you find out about this?

ANDREW BREITBART, CONSERVATIVE BLOGGER, BIGGOVERNMENT.COM: It was on Friday evening, I live on the west coast, so sometime around 7:30 or 8:00 at night, I was checking my Twitter account, and somebody sent me the re-tweet. I clicked on it, saw that it was coming from Congressman Weiner's account.

We did as much research as we could, it was a verified account of Congressman Weiner, and we followed the story throughout the night, and we decided to break the story at the point that Congressman Weiner announced on his Twitter account that his Facebook page had been hacked. The second that he -- that a sitting Congressman said that his social media had been hacked, it was truly a story, and it's been a wild three days.

KAYE: And the source of this photo was a conservative blogger, as well, named Dan Wolf. Do you know any idea -- have any idea how he got this photo, how he uncovered this photo? And did you know him before at all?

BREITBART: I didn't know him before. He was the one that tweeted it. He sent it -- he forwarded it through Twitter to many prominent people within the blogosphere, including Arianna Huffington and "The Huffington Post." I just happened to be at my kitchen island, and I saw it and so --

KAYE: What is your understanding though of how he discovered it?

BREITBART: I don't -- well, we have that exclusive at Biggovernment.com right now, but he has been monitoring rep Weiner for quite some time now because according to his theory, and I don't know him that well, he's been monitoring relationships that Congressman Weiner has been having with women, young women, who claimed to have relationships with him.

I'm not saying what type of relationships, but people that rep Weiner's follows. Girls that are quite young, younger than the girl in question here, talk openly about rep Weiner who he follows these girls. So, that's where the story --

KAYE: All right. Those are definitely some -- those are some interesting allegations. We'll have to put those to the representative, he's not on the show now, to ask him about that. But I do want to ask you about the photo, because it was apparently sent to this woman -- 21-year-old Gennette Cordova. She issued a statement to "The New York Daily News" saying that she never met the Congressman, she simply followed him on Twitter, and she jokingly referred to him as her, quote, "boyfriend on a tweet." But take a look at the statement that she gave to the "New York Daily News" with me, she says, quote, "I do not have a clear understanding as to how or why exactly I am involved in this fiasco.

She goes on to call all of this speculation and faulty allegations, saying my reputation has been called into question by those who lack the character to report the facts. Now, yet, a lot of conservatives like yourself, Andrew, seem to be implying a possible relationship between Cordova and the Congressman. BREITBART: Well, actually, we never mentioned her name. We've made this about Congressman Weiner the entire time. It was Gawker, which is a liberal Web site, that named her, and she named Gawker by name for outing her.

Salon's Joan Walsh, a left wing site, attacked us falsely for naming her. We have not made this about this woman whatsoever. This is about Congressman Weiner, who for over 72 hours allowed for people to believe that his Web site was hacked, which caused for this poor guy who discovered this thing to be accused of being a hacker, and he has gotten death threats. What has happened in the last 24 hours is that he's downgrading it to a prank. There's something fundamentally different between a prank and a hack.

KAYE: Do you have any evidence to show that this wasn't a hack or a prank?

BREITBART: A prank -- a prank is innocuous, a hack is criminal and malignant. We have called for an investigation to clear Wolf's name, because for the last 72 hours, the supporters of Congressman Weiner have accused him online, and many prominent ones including "The Daily Cause" (ph), of having hacked him. So, if there was in fact --

KAYE: So, what evidence is there that this wasn't a hack? I'm just asking you?

BREITBART: Well, why doesn't he want an investigation? He is saying it's a prank. What's a prank? How does he know the motivation? How does he know -- if he does -- prank implies he knows who the person is and that it was done in a light-hearted, innocuous fashion. A hack means that a sitting congressman who has national security issues has been hacked by both Facebook and Twitter. There should be an investigation. And the Democratic party was calling for a full-scale investigation into Mark Foley, when only text messages were exchanged between somebody. This is -- this is much more serious.

KAYE: So, you want the forensics tested, actually. What do you think really happened here?

BREITBART: I can't -- at this point, Weiner has created more questions for himself. I want there to be a full-scale investigation into this. I want the FBI or the capitol police to investigate this, because for 72 hours, by saying that it was a hack, the left wing blogosphere went nuts, and has accused many people on the right of having hacked Congressman Weiner's account. KAYE: Well, he has -- he has lawyers looking into it. He has lawyers now looking into it, you have -- you're calling for an investigation --

BREITBART: Well, I don't trust -- I don't trust Congressman -- I don't trust Congressman Weiner's lawyers to exonerate wolf or other people out there who have been accused of hacking.

KAYE: I also want to ask you. I mean, you are a right wing blogger yourself, you were at the forefront of the Shirley Sherrod incident that when you -- when you published this edited version of her speech and weren't exactly forthcoming about that, so --

BREITBART: Yes, which -- which included the -- it included the redemptive arc.

KAYE: Wait. Let me finish my question. Why should we take your word on the case of Congressman Weiner?

BREITBART: Because the Shirley Sherrod case I had the redemptive arc in the video and my article said eventually her basic humanity informs her to help the white farmer. The media cut that story up to try and attack me, look at my 1,400 word original piece that said -- the NAACP was mentioned 17 times in that. Shirley Sherrod was mentioned four times in that. This was the last attempt to take me down, and it didn't work.

KAYE: All right. Well, still certainly a lot of questions out there surrounding this case. Andrew, we do appreciate you coming on and talking about it, and letting us know the trail of the information as best we can at this point. And we'll continue to follow it. Andrew, thank you.

BREITBART: Thank you.

KAYE: And for a better perspective on the legal side of this, let's bring in our senior legal analyst, Jeffrey Toobin.

Jeffrey, representative Weiner is a public figure, and Twitter is a public forum, what protections, if any, does he have when it comes to a case like this?

JEFFREY TOOBIN, CNN SENIOR LEGAL ANALYST: Well, I'll tell you one protection he has, Randi. He has me saying that what Andrew Breitbart was insinuating about him with young girls and stuff, is outrageous, and frankly, it's too bad that he got to say that stuff on CNN.

Look, this is a light-hearted story. This is a silly little thing that happened. It's not a big deal. And to have him convert it into some sort of sinister activity and conspiracies and left and right, look, everybody knows that on the Internet, stuff happens.

KAYE: Right.

TOOBIN: And something happened with Anthony Weiner's account. It has nothing to do with the left or the right. It's just like a silly thing that happened.

KAYE: And that's why we were quick to point out that he was making these very strong allegations on our air, and with the representative not here to defend himself, we're going to have to ask him about that.

TOOBIN: It was terrible.

KAYE: But, again, what protections does he have?

TOOBIN: Well, I mean, look, Twitter is not a very secure environment. Twitter is -- you know, an example of social media where people, you know, talk back and forth and sometimes they do it in a light-hearted manner, but I think this case is a good illustration that you have to be careful, just like you have to be careful with anything on the Internet.

You know, Wikipedia is a great thing, sometimes Wikipedia is wrong. Twitter is a great thing, sometimes the information is not reliable and doesn't even come from the people it appears to come from. That's the lesson here, and I think, you know, buyer and reader beware.

KAYE: But wouldn't it be easier -- I mean, we know he has hired a lawyer, but why not just go to capitol police and the FBI to investigate who hacked his account? I mean, from your perspective, is a lawyer the right way to go here or should there be an investigation and we can just put this to rest?

TOOBIN: Probably. But, you know, there's a famous expression. Don't make a federal case out of it. That strikes me as the appropriate reaction here. You know, no one was hurt, no one was injured, no one was horrified or shocked. There was no obscenity here, there was no -- nothing malicious. I mean, sure, if this continues, or if something really sinister comes out, then perhaps it calls for an investigation.

I mean, I think Congressman Weiner is handling this in the appropriate way, as far as I can tell, which is basically treating it as kind of a joke. He said that, you know, now he's -- now that he's got this problem with this computer, he's worried that his blender is going to attack him. Although he's fairly confident that his toaster is on his side.

I mean, I think that's the appropriate tone to take with this. And to turn it into something more than -- more than a mild prank, hack, whatever you want to call it, seems really excessive.

KAYE: So, play it down, and let the others play it up, I guess. All right, Jeffrey Toobin, appreciate your advice.

TOOBIN: Yes, I just don't think it's a big deal.

KAYE: All right, well we'll continue to with that along with you.

TOOBIN: OK, Randi. Very good.

KAYE; Thank you, Jeffrey.

Well, hackers have been around as long as computers themselves. And as the world has gotten ever more digitized, the prospects for mayhem or outright disaster have multiplied. It's a battle fought every day in cyberspace, but in the not too distant future, it may be fought in the real world with real military hardware.

My colleague, Chris Lawrence, joins us from the Pentagon with more on this. Chris, tell us, what's being contemplated and why?

CHRIS LAWRENCE, CNN PENTAGON CORRESPONDENT: Well, the Pentagon is in the final stages of putting together its sort of cyber security strategy, Randi. It's going to be released probably in the next two or three weeks. And basically, taken as a whole, as a part of U.S. strategy, this is basically saying that if the United States is attacked through a cyber attack, it may be so damaging that it would cause the United States to respond with military force.

In other words, computer attack in, military force going out. In other words, if there was a cyber attack that caused a nuclear reactor to melt down and kill hundreds of people, there's -- what this is saying is, that's the same as if somebody blew up something outside and caused that same sort of damage at the reactor. Or if it they shut down an electrical grid, which cut a pipeline, they would say, well, that's causing the same sort of damage as a naval blockade.

So, they're equating the damage that cyber attacks could potentially do an actual military attack, and basically saying that the U.S. has the option to respond in kind. The U.S. policy now, under the Obama administration, is at a military option on the table -- Randi.

KAYE: All right. Chris Lawrence for us at the Pentagon. Chris, thank you.

And stay with us next hour when our stream team takes aim at military responses to virtual invasions. Can you really fight hackers with hell fire missiles? A former NATO supreme allied commander joins our panel at 2:50 Eastern time, only right here on CNN.

Experts have been warning about a double dip in the housing market. Does the latest evidence prove them right? We'll tell you all about it, next.

(COMMERCIAL BREAK)

KAYE: Bad news if you own a home. Even worse news if you're trying to sell it. New figures indicate that house prices have hit an eight year low. Meaning prices are now even lower than they were in the depths of the mortgage meltdown. Alison Kosik joins us from the floor of the New York Stock Exchange.

And, Alison, is this the double dip that we've been fearing? ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Randi, you know what, you talk to some analysts and they'll tell you yes. And here's why. You know, we all thought that prices for homes hit bottom in 2009, but now they're even lower. Take a look. This is a classic double dip. Prices began plunging in 2007. We saw them rebound in 2009, 2010. But, you know what, it didn't last. Now we are beginning to see that second dip.

Now, keep in mind, part of the rebound you saw there was artificial. It came from those first time home buyer tax credits. The market also was pressured by the cheap foreclosure properties that are really filling the market right now. And we're watching prices fall to levels right now we haven't seen since 2002. This is happening in big cities, major cities, like Minneapolis, Phoenix, Chicago, Portland. You know what, Randi, it's every -- it show just how widespread the problem is -- Randi.

KAYE: And a lot of people, Alison, wondering when will things get better? Any idea on that?

KOSIK: Well, you know what, I got to be honest with you. You know, most Americans are pessimistic. Look at this. Fifty-four percent of us, we don't think housing's going to recover until 2014 or even later. And if you listen to analysts, they're just as ominous. RealtyTrac analysts saying a housing recovery is a long way off. S&P analysts saying there's no relief in sight -- Randi.

KAYE: Alison Kosik for us with some not very good news about the housing market.

Alison, always a pleasure to see you, though. So, thank you.

KOSIK: Thanks.

KAYE: What are the three words that best describe your personality? Next, in "Your Money," we're talking to a student who started to build an empire from this single question. Don't go anywhere. This interview will be amazing, interesting and awesome.

(COMMERCIAL BREAK)

KAYE: Smart, loving, determined. If you only had three words to describe yourself, what would they be? At only 18 years old, our next guest started the successful website, threewords.me where visitors describe their friends' personalities in just three words. Within its first three weeks, it landed a quarter of a million subscribers.

New Yorker Mark Bao eventually sold this and two other web companies, which he says were highly profitable, and is now working on the tablet publishing application Onswipe (ph). Mark joins us now.

Hi, Mark.

First, I'm sure you get this all of the time. What are the three words that you say best describe you? MARK BAO, COLLEGE STUDENT & ENTREPRENEUR: Well, can we -- I can take it from my profile page. I think the three words that would describe me were awesome, smart and Asian.

KAYE: Oh, OK. Well, those all fit as best I can tell. Why do you think the simple question and answer website became so popular?

BAO: I think it's just that people want to get a good idea of themselves from other -- from another perspective. I mean I myself was interested in finding what people thought about me in three words. I think other people have that same kind of -- have that same kind of curiosity.

KAYE: Yes. And you've also created some other sites. Tell me about those.

BAO: Well, I created some -- I had two other previous companies I sold. Currently I'm working on Onswipe in New York City. So I just moved down here from Boston to New York City and pretty much kind of dropped out of college. And so now I'm working at Onswipe, which is a tablet publishing platform here.

KAYE: So is your feeling you just don't need college because your career is well on its way already it seems, huh?

BAO: Yes, definitely. Definitely.

KAYE: Well, you're just 18. So, tell me, what's your goal behind all this?: And what really drives you here?

BAO: I think it -- my goal is to, you know, do all of this business stuff. But my main goal is to contribute with a positive kind of effect on the world at large. So my main goal is to, you know, to do this entrepreneurship thing and then focus on positive philanthropy. You know, I want to focus on humanitarian action, you know, social change, political action, as well as a lot of -- as well as scientific contribution. These kind of things, I think, will make a big impact that's, you know, larger than myself. And that's what really drives me every day.

KAYE: And so we're just looking at your plan there. So you want to be worth $10 billion, and then you're going to give a lot of that money away.

BAO: Exactly. I mean, that's the way I think I can make the biggest impact.

KAYE: All right. Well, you are well on your way, Mark Bao, at 18. And we appreciate you coming on. Very interesting.

BAO: Thanks so much.

KAYE: Thank you.

BAO: Thanks. KAYE: Rating the president. New numbers are mixed for the most part. Our Ed Henry will be along in just a moment with the highs and lows. There he is, the man of the hour. We'll be right back.

(COMMERCIAL BREAK)

KAYE: We are awaiting the arrival of President Obama. He is expected to announce his choice for commerce secretary just moments from now. CNN's senior White House correspondent Ed Henry joins me at this time every day.

Ed, glad you're with us again today.

ED HENRY, CNN SENIOR WHITE HOUSE CORRESPONDENT: Good to see you.

KAYE: So what do you know about this? Who's in? Who's out?

HENRY: Well, John Bryson, he is a former utility executive out in California, also on the board of Disney, as well as Boeing and somebody, interestingly, early in his career, he started the -- one of the premier environmental groups, the Natural Resources Defense Council. And so he's somebody that some on the left are going to appreciate. But as a recently retired business executive, somebody who will be seen as a key member --

KAYE: Ed, let me interrupt you. Ed, let me interrupt you here because the president is just at the podium making the announcement.

HENRY: Yes.

(BEGIN COVERAGE)

BARAK OBAMA, PRESIDENT OF THE UNITED STATES: Good afternoon, everybody.

Today I am pleased to announce that I will nominate John Bryson to be our nation's next commerce secretary. John is somebody who will bring to this job a wealth of experience in the public and in the private sectors. But in my mind, nothing has prepared him more for this demanding role -- a role that requires delicate diplomacy, complex negotiations, and careful management of folks with strong views -- than being the father of four daughters. They are all here today, as is John's wife, Louise (ph), and I'm sure John agrees that Louise (ph) gets the credit for how wonderfully they have turned out.

As commerce secretary, John is going to be an important part of my economic team, promoting American business and American products across the globe. By working with companies here at home and representing America's interests abroad, I'm confident that he's going to help us meet the goal of -- that I set of doubling our nation's exports.

In this new role, John will be able to draw on decades of business experience across a range of industries, from his role on the boards of major companies like Disney and Boeing to his leadership in the clean-energy industry. Now, that's the expertise that will help us create new jobs and make America more competitive in the global economy.

Of course, John will be building on the success of outgoing Commerce Secretary Gary Locke, who has tirelessly advanced America's economic leadership abroad, securing export deals that will mean hundreds of thousands of jobs here in America, including an agreement with China, where Gary will now be serving as our next ambassador. And we couldn't be prouder of him and are confident he's going to be doing an outstanding job there.

Of course, in the years ahead, a key to achieving our export goal will be promoting clean energy in America. That's how we'll reduce our dependence on foreign oil, and that's how we'll encourage new businesses and jobs to take root on our shores.

John understands this better than virtually anybody. Throughout a distinguished career in which he's led nonprofits, government agencies, and large companies, he's been a fierce proponent of alternative energy.

As a young man with a degree in hand from a prestigious law school, John didn't follow his friends to a blue-chip law firm. John took a chance on an idea he cared about and co-founded the Natural Resources Defense Council, which grew into a powerful and important voice in protecting the safety of our air and water.

It was then that John caught the eye of a young California governor named Jerry Brown. I'm not sure what happened to that guy. But -- but for John, it led to leadership positions in government, where he got a firsthand look at the real-life impact of energy and environmental policies, from water conservation to electricity production.

Later in the private sector, he rose to become the chairman and CEO of Edison International, one of the nation's largest utility companies. John headed the company for almost 20 years, during which time he helped Edison become a leader in solar and wind power and innovative approaches to proving the profitability of clean energy.

Just before he retired from the company, he launched a plan to turn 65 million square feet of unused commercial rooftops into solar power stations, the largest array in the country with enough electricity for more than 160,000 homes. Today, he advises companies around the world as a business leader who understands what it takes to innovate, to create jobs, and to persevere through tough times. And he continues to carry himself with the integrity and sense of responsibility that have guided him his entire life.

This experience and these qualities will serve our nation well, as John takes on yet another tough assignment in his career.

So I want to thank Gary again for his extraordinary service. He has done an outstanding job while at Commerce.

And, John, I am grateful to you for your willingness to serve. I look forward to working with you, and I know that you will help us deliver the kinds of growth, prosperity, and job creation here in America that we all want.

So thank you very much, both of you.

UNIDENTIFIED MALE: : Thank you very much, Mr. President.

UNIDENTIFIED MALE: Thank you, Mr. President.

OBAMA: Thank you. Thank you, everybody.

(END COVERAGE)

KAYE: All right. There you have it, the announcement.

Let's get back to Ed Henry who's in Washington following this along with us.

Ed, what will be Bryson's first order of business, do you think?

HENRY: Well, I think, as the president said, as a key member of the economic team, the president made the pledge that he's going to double U.S. exports in the next five years. That's a tall order. He wants to do that in order to improve the jobs picture here in the U.S. But first he's got to get this man confirmed by the U.S. Senate.

It's interesting, while the president was announcing that, Senator McConnell, Mitch McConnell, the Republican leader in the Senate, his office was putting out a statement, saying basically that they've -- they're blocking a lot of these kinds of nominations until the president moves forward on some of these trade deals that have been pending to boost U.S. exports. There's one with South Korea that's been pending, there's one with Columbia.

And so bottom line is the president has been pushing for some of these trade deals, sort of in general, but specifically has not worked enough in the estimation of the Republican leaders on the hill to actually push them through Congress. They still have to get through.

So I think it's going to be a tall order, immediately, right out of the box for this new commerce secretary just to get confirmed, first of all, and then secondly, to figure out how to navigate trade deals that have been stuck on the Hill, some for a few years now.

KAYE: Yes. He's certainly going to have his hands full. That's for sure.

Ed Henry, thank you.

Next, another former international banking executive is accused of assaulting a hotel maid in New York. Details, just ahead.

(COMMERCIAL BREAK)

KAYE: Here are the latest developments and stories you may have missed.

Two Iraqi citizens have been arrested and indicted in Kentucky for helping the al Qaeda and Iraq in surgeon see. Officials said one had repeatedly attacked U.S. troops with IEDs. Both suspects allegedly tried in recent months to provide weapons from the U.S. to the insurgency. The men were taken into custody in Bowling Green and were arraigned today in federal court in Louisville.

Sarah Palin is stringing along the media on her bus tour this week, quite literally. Palin snuck in and out of Gettysburg today and her staff is keeping most of the news media in the dark about her tour stops, resulting in a cat and mouse chase from one stop to the next. Palin told reporters to expect the unexpected if she runs for the White House. A paid contributor for FOX News, Palin told FOX she is challenging reporters to keep up the pace.

Congressman Anthony Weiner has hired an attorney to advise him after a lewd photo of a man was sent to his Twitter account to a college student in Seattle. The photo showed the man from the waist down with a bulge in his underwear. The photo and Tweet were quickly deleted. Representative Weiner is denying he posted the photo and says it was a prank by a hacker.

We caught up with the Congressman again today to get more answers, but this is what he said.

(BEGIN VIDEO CLIP)

REP. ANTHONY WEINER (D), NEW YORK: At a certain point, you've got to get back to work. I understand the people want to keep talking about this. I'm focusing on the things I want to focus on. I've got a few statements out there you can go and refer to and if you want more and you want to keep following the story, you're certainly welcome to do it. I'm going to focus on the things that my constituents want me to.

(END VIDEO CLIP)

KAYE: The Capitol police and the FBI tell CNN they are not currently investigating the case.

A former Egyptian banking executive is in custody in New York after allegedly sexually assaulting a hotel maid. Mahmoud Abdel Salam Omar is now the chairman of a salt company. Police say the 74-year- old assaulted the maid when she brought extra tissues to his room on his request. It allegedly happened at the Pierre Hotel in Manhattan. This case comes just a couple weeks after former IMF chief Dominique Strauss-Kahn was accused of attacking a maid in his Manhattan hotel room.

Former Bosnian Serb strongman Radko Mladic is on his way to The Hague in the war crimes tribunal. He arrived in Rotterdam just moments ago. Earlier today, a judge approved his extradition from Serbia and denied claims that the former general was too frail to stand trial. Mladic is accused orchestrating the killings of thousands of Muslim men and boys during the Bosnian war in 1995. He was found outside Belgrade earlier this month after 15 years in hiding. Last hour, the World Health Organization announced that cell phones can possibly cause cancer. It said cell phones are in the same hazard category as lead, engine exhaust, and chloroform. The organization's cancer research team includes 31 scientists from 14 countries, including the U.S. Until now, they had said no adverse health effects had been established and the cell phone industry maintains that there is no conclusive evidence of danger.

Americans depend on the Federal Food and Drug Administration to make sure their prescriptions are safe. We'll hear from two veteran journalists who say that trust may be misplaced.

(COMMERCIAL BREAK)

KAYE: Now CNN in depth. Medication Nation. CNN is looking at the pharmaceutical industry this week. As part of our investigation, chief medical correspondent Dr. Sanjay Gupta spoke with veteran journalists Donald Bartlett and James Steel. They wrote about the Food and Drug Administration in "Vanity Fair."

(BEGIN VIDEO CLIP)

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: This is a topic I'm very interested in, I've done some reporting on myself. I read your article in "Vanity Fair." Americans take a lot of medications. About 61 percent of adults take at least one pill, 25 percent of seniors take at least one medication and these numbers are going up.

Just as a starting point, and we're going to get into this, but how much confidence should they have that their medications are safe, Donald?

DONALD . BARTLETT, CONTRIBUTING EDITOR, "VANITY FAIR": That's a really good question. It's -- it's almost like a lottery. Many of them are, and many -- and some of them are not. And the question is, for the person taking the pill, what are my odds?

JAMES B. STEELE, CONTRIBUTING EDITOR, "VANITY FAIR": And also, you have the situation that a pill that may be fine for one person isn't for another. And that's one of the great unknowns that hangs out there with almost all medications.

GUPTA: You know, I think people sort of generally understand the process. There's an FDA, an organization that's supposed to oversee this. Medications are supposed to be proven that they are safe. They're supposed to be proven that they are effective and even more effective than existing medications.

Let me start again with you, Donald, what doesn't seem to work here?

BARTLETT: Well, you make a very good point -- very good point there in that they're supposed to be better than the existing medications. But sometimes the trials are run on placebo, not the existing medications. So it's entirely possible for a drug to be approved as safe and effective, but it's not as safe and effective as one already on the market, which is much cheaper.

GUPTA: There have been a lot of high-profile stories lately, James. Avandia was pulled from the shelves in retail stores. It was linked to heart problems. The FDA has just put tighter and tighter restrictions since the first big reports of this in 2006. But, as a reporters, it seemed like it sort of trickled out.

Let me start here. Did the FDA move fast enough with regard to Avandia?

STEELE: They did not move fast enough and that's an excellent example to talk about because many of the reports of adverse reactions were coming from all over the world. And, in fact, one of the things that actually stunned us when we were doing our research is that most of the major health regulatory bodies around the world were pulling Avandia off the shelves long before we were. One of the ones that amazed us was even the Saudi Arabian drug agency basically pulled it off the shelves way before the U.S. took this action.

So it was clear to the rest of the world and the information that was coming out about Avandia was compelling and very powerful. But once again, FDA drug its feet on this and took forever to take this action, which they just took this week.

GUPTA: Is it -- I don't know quite how to ask this, James, but is this just inefficiency or is there something more sinister at play here? Why would the FDA be moving so much more slowly than some of these other countries in terms of their regulation? STEELE: I think one of the reasons is so much gets invested in one of these drugs, and they don't -- the drug industry has tremendous influence with the FDA. I think we probably all know that, we all recognize that. And it was a tremendous profit-maker for the company, which was manufacturing.

And so there were tremendous influences to try to keep it on the market as long as possible. I think that's -- we don't see one particular example of where the FDA should have acted. They just simply did not respond to overwhelming evidence that began coming in everywhere else. But it's typical of many of their actions on many drugs. By no means was unusual with Avandia.

BARTLETT: Sanjay, just to play devil's advocate here for the FDA, if you go back a few years, they were under enormous criticism for not approving drugs fast enough.

GUPTA: Right.

BARTLETT: And the news media in this case, our profession, really took after them, because basically accusing the agency of withholding life-saving medications from the public and nothing could have been further from the truth. But the FDA got burned during those years very badly.

(END VIDEO CLIP) KAYE: Coming up, in the 3:00 p.m. Eastern hour of NEWSROOM, Brooke Baldwin will have part two of the conversation, focusing on clinical trials overseas.

And coming up right here, nightmare of a revolution. Reports that Egyptian women were subjected to virginity tests, now confirmed. The shocking details, right after this break.

(COMMERCIAL BREAK)

KAYE: Forty-six minutes past the hour. Here's a check of our top stories.

Home prices were down just over 5 percent in the first quarter compared to a year ago, hitting their lowest level in nine years. It was the third straight quarterly drop for the S&P Case-Shiller National Home Price Index. One analyst says there is no relief in sight.

An Egyptian military general admits to CNN that the military forced women protesters to undergo virginity checks. He says 17 women rounded up during a March 9th protest were subjected to those tests. Until now, the military had denied reports of this. One alleged victim says she was tied up, beat, shocked with a stun gun, and then examined by a male doctor.

Today, Hamid Karzai warned that any future NATO airstrikes that kill civilians will be considered attacks against the Afghan people. According to officials, just three days ago, an airstrike killed 14 civilians in southern Afghanistan.

Despite a sluggish economy, Americans continue to give President Obama thumbs up. His approval rating stands at 54 percent, with 45 percent saying they disapprove of the job he's doing, according to the latest CNN/Opinion Research Corporation survey. However, his approval rating on every domestic issue listed in the poll is well below 50 percent.

And in space, the crew of Shuttle Endeavour is preparing to return to Earth early tomorrow. Endeavour's crew completed four spacewalks and several maintenance upgrades as part of its final mission. The return from the International Space Station to the Kennedy Space Center in Florida will heart attack the end of Endeavor's 19-year career.

After the break, we'll tell you about a man who set out to help a friend in need of a prosthetic hand, and wound up creating what some call one of the most incredible inventions of the year. Wait until you see this. Keep it here.

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KAYE: Welcome back.

Every day on this show, we do this segment called the "Big I." It's all big ideas, innovations and solutions to problems. And in today's "Big I," we want to talk to a man who created what "Popular Science" magazine calls one of the top inventions of the year.

Mark Stark invented a prosthetic hand that can be almost as functional as an electronic model, but at a fraction of the cost. He created it, actually, to help his friend who need of a prosthetic hand, and this simple yet innovative idea could end up helping many more.

Ken Paulus, who is working to help market the prosthetic with Mark, joins us now, and he's the vice president of business development at Edison Nation.

Ken, this is really cool. First, tell us just a little bit more about what inspired Mark to create this. How did he do it?

KEN PAULUS, VICE PRESIDENT OF BUSINESS DEVELOPMENT, EDISON NATION: Well, we are absolutely thrilled to be working with Mr. Stark on bringing this hand to the market.

He was actually inspired by one of his best friends, Dave Vogt, as you had mentioned before, who was born without a left hand and as well as part of his left arm. And he was frustrated by the fact that his friend was constantly fumbling with hooks and that when he was outside of work or outside in social settings that the hook was very -- attracting a lot of attention that was unwarranted at the time.

So he decided to go into the basement to fix the problem the best way that he knew how, which was actually build his friend a hand.

KAYE: And I see, just when you were motioning there, that you have a prop with you.

PAULUS: I do.

KAYE: So maybe you can show us or tell us a little bit about how this invention works and how it compares to others on the market?

PAULUS: Sure. So this is our first prototype that Mr. Stark actually built in his basement. And what it is, it is a device that is five-articulating finger product. So when you pull on the handle, five fingers actually articulate that allow you to grasp objects like water bottles, balls, brooms, and other devices that you simply can't do with a hook.

So what was quite interesting about this is that, as Mark developed it, he initially created some intellectual property around this hand. This mechanism in here, this pulley system allows for you to pull once and have these five digits articulating, as you see right here on camera.

KAYE: And so are there limits it to, or can it do pretty much anything?

PAULUS: Well, it can do a lot of different things. So, for example, you can pick up a water bottle, as I mentioned before, and we actually have some props that can demonstrate that as we go here on camera. So, as you can see, the hand can articulate around this particular bottle here, and lift up a water bottle. A hook can't do that.

It can grab a ball, for example. And I'm not as proficient as the inventor's friend, Dave Vogt, who can actually catch a ball in the air with this particular device. It has --

(CROSSTALK)

KAYE: So when will it come to market?

PAULUS: We expect it to be on the market between 12 and 18 months. Right now, it is our goal to create this into a more manufacture-ready product.

The device that you see here today is actually a one-up prototype that is a little bit beat up, because Dave Vaught has been using it for a couple of years now.

KAYE: And what about cost? Will lots of people be able to afford this for those in need?

PAULUS: That is the goal. So right now in the market, you have a difference of the hooks on the market which average between $300 and $1,000.

And then you have myoelectric hands which are very sophisticated, amazing devices, but those products alone cost between $15,000 and $20,000. With the surgeries, it can be up to $60,000 dollars.

So we think this is a great opportunity to create a product that fits in between the hook market and the myoelectric model. And that's what we think we've got here with the Stark Hand.

KAYE: Wow. Well, that is pretty impressive, and so nice that he was able to help his friend.

Thank you, Ken. Appreciate you showing us that.

And for more about this, you can check out our blog at CNN.com/Ali.

Drafting a new candidate for the GOP. Iowa Republicans make their pitch, but who do they want? Find out in our CNN Political Update, coming your way next.

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KAYE: Time now for a CNN Political Update, and some Republicans may not be happy with their choices for 2012.

CNN senior political editor Mark Preston and deputy political director Paul Steinhauser join me now from Washington.

Paul, let's start with you, and news of a push to draft a new Republican presidential candidate.

PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Yes, here is what is going on today and it is a sign, Randi, that maybe the Republicans are not so happy with the current field of candidates they have got.

A group of about half a dozen Iowans, some big players on the Republican side, donors who give a lot of money to Republican candidates, they are going to New Jersey today. Who are they going to meet with? Chris Christie, the very outspoken governor of New Jersey who has become a rock star among many Republicans because of his push against the Democrats in the state to cut the budget. Well, they are trying to convince Christie to run.

Here is what he recently said to CNN's Jessica Yellin. He said, "You ain't getting me anywhere near that. My god, I am not running for president. Remain calm. All is well." The most recent time he has said, forget about it, when running for the White House.

Mark, what do to Republican voters think about all this?

MARK PRESTON, CNN SENIOR POLITICAL EDITOR: Yes, you know, Randi, certainly in the political circles we run in and hear from every day, they talk about Chris Christie as the candidate that they would like to see jump in the race, but you know something? A new CNN/Opinion Research Corporation poll shows that may not be an overwhelmingly great support of it.

Let's take a quick look at that right there. You can see that only 45 percent of the Republicans want him to run for the Republican nomination, while 45 percent do not want him to run.

So, Randi, while there tends to be some support for a Christie run, it is certainly not overwhelming -- Randi.

KAYE: I also want to ask you, Mark, about this whole birther story. It seems like it is not going to go away. Will it ever?

PRESTON: No, it will never go away, certainly as long as President Obama is in office and thereafter. In fact, there is a new book out that is on "The New York Times" bestseller list, it's by conservative author Jerome Corsi. It came in sixth on "The New York Times" bestseller list this weekend.

And you know what? It's really interesting, because the fact of the matter is, Corsi is making the claim that Barack Obama is really not a U.S. citizen.

So, even though a lot of people are reading it, though, there are poll numbers that show that a majority of Americans think otherwise -- Paul.

STEINHAUSER: Yes, check it out, Randi. Look at this, our CNN/Research Corporation poll we did after the president had Hawaii release the birth certificate. Look at that, eight out of ten we polled say, yes, the president was definitely or probably born in the United States. That is a jump from earlier in the year.

But 17 percent still say, they don't think he was born in the U.S., definitely or probably not. So I guess there are still people out there that doubt it, Randi.

KAYE: Well, no matter how many times we think we have put this to bed, it's still -- it's still out there.

Hey, guys, I also want to ask you about Sarah Palin. She's on this bus tour around the country. We don't really know where she is because she won't tell any of us, except FOX News, her employer.

But I'm curious what you think. And how is she doing in the polls? I mean if she were to run.

STEINHAUSER: Well, she's on her way right now to Philadelphia. We have Peter Hamby, our political reporter, who is following her right now. She was at Gettysburg this morning, going, we believe, to the Liberty Bell and Independence Hall in Philadelphia.

The polls, she's pretty high. You know, among most of the national polls, including our own, Mark, she's right up there near the top of the horse race.

PRESTON: Yes.

No, she certainly is, Randi. I've got to tell you what though. For all the hoopla that is around this bus tour of Sarah Palin going up the East Coast and at least leaving the door open to a presidential run, I've got to tell you, personally, it doesn't look to me like she is actually running for president. In fact, it's perhaps just looking for some attention.

Now, again, that's my personal attention, but the fact of the matter is, if she is a very serious candidate, she would at least publish her schedule, allow the media, allow local Republicans in these states and counties she's visiting to show up. But we're finding out about her stops just moments before she has arrived. So it just seems a little strange for me if she is seriously running for president that she would take this route to do so.

KAYE: All right. Mark and Paul, pleasure to see you guys. Thank you.

STEINHAUSER: Thanks, Randi.

KAYE: And your next update from "The Best Political Team on Television" is just an hour away.