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Lawmakers Debate Dream Act; Man Who Found Caylee May Testify; Judge: No Forced Meds for Loughner; Wildfire Rages Near Nuclear Lab; Flood Raises Nuclear Concerns; President Obama Visits Iowa Today; Bachmann Launches Bid in Iowa; Palin Film Debuts in Iowa; Angry Protests Over Cuts in Greece; Part of Georgia Immigration Law Blocked; Giffords Makes Public Appearance; NCAA Star Lorenzo Charles Dies; Debt Ceiling and What it Means for You; Networks Deny Hiring Charlie Sheen; Tom Hanks' Son is a Rapper; Hanks: Toy Story 4 is Happening; Beyonce on Racism, Babies and Politics; Bulger Wants Court Attorney; Report: Facebook Hires Computer Hacker
Aired June 28, 2011 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: And it's 10:00 a.m. on the East Coast, 7:00 a.m. out West. Thanks for joining us everyone. I'm Kyra Phillips.
Today, a new Senate hearing on the Dream Act. The controversial proposal would allow students who came here illegally with their parents to stay in the country. Supporters say it makes sense. Critics say it rewards law breakers.
The Casey Anthony murder trial. Jurors may hear from the man who found the little girl's body. And the defense, they call the meter reader who stumbled across Caylee's remains.
Lawyers for Jared Loughner say he should not be forcibly medicated. Loughner is accused of gunning down Arizona Congresswoman Gabby Giffords and 18 other. A judge ruled he's not competent to stand trial.
It began with a raging wildfire that has raced within a mile of the Los Alamos National Laboratory. It's where the first atomic bomb was developed and plutonium is still housed.
Reporter Alana Greenfogel with our affiliate KLAT joins us now live with the latest. So Alana, how concerned are officials right now about the fire reaching dangerous -- or reaching these facilities and causing possibly a dangerous scenario?
ALANA GREENFOGEL, KLAT CORRESPONDENT: Well, certainly the potential is there, but we are told the lab is safe right now. The governor has been here since this fire started on Sunday getting briefings from experts and they say that while the fire is close, that the buildings and especially that sensitive material are OK.
That hazardous material is in bunkers underground and they are not at threat by this fire. Now, the fire did reach the property yesterday, but it was put out. Federal and state crews are on the scene watching every single inch and will be protecting that land because as you mentioned, such important and sensitive potentially dangerous materials are on that facility.
PHILLIPS: Alana, 10,000 people already evacuated and just yesterday, actually, that was just yesterday. So what do you think you know, firefighters are facing now? How many more people could be evacuated?
GREENFOGEL: Well, the entire town was evacuated and the fire chief says today is the make or break day. Now, for those of you who haven't been to New Mexico, you have to understand, we have more than 300 days of sunshine. This is not just a cloudy day. This haze is smoke that's filled the entire region.
Up above this town is where the fire right now is burning. It's hard to see through the haze, but before the sun came up, we could see very clearly, just a wall of fire up there right above the town.
And if the winds change, which is what they are forecasting to happen, there's a very good chance that could be pushed down to the town. So yes, yesterday, the entire town was evacuated just a steady stream of people leaving with a moment's notice. Packing their bags with their most precious belongings and getting out of here in case that happens. Kyra --
PHILLIPS: All right, Alana Greenfogel, thanks so much. So Rob, what do you think? I mean, what are firefighters up against here as you look at the forecast?
ROB MARCIANO, AMS METEOROLOGIST: Today is a good. Yesterday wasn't a bad day, but they still don't have much containment, if at all. I got a couple of satellite pictures I want to show you. This is when the fire started.
You can see the smoke coming out of the big fire here. That's southwest of Los Alamos. There's a smaller fire here well to the east, but this is the one we're most concerned about and you can see how that smoke is billowing off towards the north and east.
She mentioned winds. They are going to be playing the factor as they always do. Most of the big winds are back to the west right now. That we are seeing light, southerly winds blowing smoke into this area and we've obviously had bad visibility there, poor air quality.
An afternoon shift of the wind to the southwest, that is not necessarily what these folks want to hear. Let's show you how this pans out as far as where it exactly is. The lab itself, we're looking to the southwest. This is where the winds are going to be coming from soon and this is where the fire is over 40,000 acres of it, and knocking at the doorsteps of the Los Alamos National Laboratory.
This has happened in the past, back in 2000, and looks like it may very, very well happen in the future. As mentioned, the red flag warnings and what's going on as far as bad fire danger today. That's back to the west as we go through tomorrow, I think we're going to be seeing a little bit more in the way of winds that will be picking up.
Right now, they're pretty light, 5, 10, 15 miles an hour. Not a whole lot of moisture either, Kyra. This is the monsoon. We're finally into the time of year we should be getting higher levels of humidity. We haven't really seen that much let alone any sort of rainfall.
So today's a good day weather wise as we go into the rest of the week. They're going to have a fight on their hands that's for sure.
PHILLIPS: All right, Rob. Thanks.
In the nation's heartland this morning, even the calm assurance is unsettling, but Nebraska residents are being told it's not like the flood that triggered Japan's nuclear crisis. That much appears true, but concerns are still rising with the water line.
The Fort Calhoun nuclear plant just north of Omaha is surrounded by two feet of water. To the south, the overflowing Missouri River has crept within several feet of the Cooper nuclear power station.
Both facilities are designed to handle several feet of flooding. But here's the concern, in Japan, it was flood waters, not the earthquake that led to the March meltdown of the nuclear plant.
Brian Todd is in Fort Calhoun with the latest. So Brian, what are you seeing?
BRIAN TODD, CNN CORRESPONDENT: Well, Kyra, officials and emergency crews are working day and night to deal with this situation. They're dealing with record levels of flood waters and they are keeping the flood waters from doing further damage to this facility.
They're working to do that right now, but they have had a couple of setbacks. First, there were somewhat they call an aqua berm that was punctured on Sunday morning. These are kind of inflatable berms that they setup around as redundant barriers to protect these facilities.
They're filled with water and one of those was punctured by a piece of heavy machinery. That let in additional flood waters. That made the situation more complicated. Secondly, they've had water in encircle the network of power transformers around this facility.
Those are crucial because they power the pumps, which keep the cooling system going. That cooling system of course keeps the core reactor and the nuclear fuel rod from getting overheated. Those electrical systems have been encircled by water, but they're pumping water out of them.
They say they have a handle on this. That these facilities are safe. They say this is not going to be another Fukushima, because that was a very sudden, catastrophic flooding event. They say this crept up much more slowly.
This was a predicted event. They were ready for it despite the fact two years ago, they were cited for not being ready for an event like this. They say they've made incredible strides since then.
Officials from the Nuclear Regulatory Commission were here yesterday and they inspected this place and say they've handled it pretty well so far, but, Kyra, it's very touch and go. These floodwaters are record levels now and they may creep a little higher. They may be dealing with even through the month of August.
PHILLIPS: All right, Brian Todd in Fort Calhoun. More than 16 months until the presidential election and all roads lead through Iowa.
This hour, President Obama leaving on a trip there to tour a factory. His visit comes on the heels of Michele Bachmann's big announcement. She used her childhood hometown of Waterloo to launch her White House bid and underlined her Middle America appeal.
(BEGIN VIDEO CLIP)
REP. MICHELE BACHMANN (R), PRESIDENTIAL CANDIDATE: I have a real life background where my husband and I who came from very low middle income families worked our way through college, for everything that we have and we were able to succeed in our business and raise a successful family.
(END VIDEO CLIP)
PHILLIPS: Also in Iowa today, Sarah Palin. She'll be on hand for the Iowa premier of the documentary about her tenure as Alaska's governor. Palin has not said whether she'll run for the White House or not.
Jim Acosta joining us by phone. He's in Iowa, of course. You are actually -- have you arrived in Bettendorf yet and let's talk about the president's visit and why that factory?
JIM ACOSTA, CNN CORRESPONDENT (via telephone): I am in Bettendorf, Kyra and you know, my question is, is this June 2011 or June 2012? Iowa is looking very interesting right now.
You know, the president is headed to an Alcoa factory in Bettendorf later today. He's going to talk about manufacturing jobs The White House and the president's re-election campaign both caution this is an official visit, not a political visit.
But the president is in an interesting position right now because he has all of these Republican candidates going after him. The latest being Mitt Romney, who is saying this morning that the president's policies are putting the very manufacturing jobs he's talking about today, at risk.
So the president is going to let the pictures do the talking. We're going to see him visiting the plant, talking to the workers. This is part of the president's initiative to boost manufacturing jobs.
I have to say that, you know, Iowa is sort of a curious state for the president to visit. The unemployment rate here is at 6 percent and he's already visited the state several times, but Iowa's near and dear to his heart.
This is the state that really launched him on the road to the White House. It was the first big state that he won the first caucus state that he won back in 2008. So the White House does acknowledge this state is pretty near and dear to the president's heart. Kyra --
PHILLIPS: Well, Sarah Palin not acknowledging whether she's going to run for president or not, but her movie does debut there this evening and you had a chance to speak to the film director.
ACOSTA: I did, yes. And he is very cautious to say he doesn't work for Sarah Palin, but make no mistake, this is very much a pro- Palin movie that is going to be debuting tonight in the town of Pella, Iowa.
And Sarah Palin will be on hand for the debut and what a lot of people in Iowa are wondering is whether or not this is sort of a pr precursor to an eventual political campaign. We were talking about Michele Bachmann just a few moments ago.
Sarah Palin has no campaign on the ground right now, so we're all sort of waiting to see what Palin does next. In the meantime, this movie is debuting this evening and I had a chance to sit down with the director of the movie to ask him whether or not this is an attempt to sort of reinvent Sarah Palin. Here it is.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: First 90 days of Governor Palin's administration were insane. We worked like dogs, seven days a week, 15-hour days.
UNIDENTIFIED MALE: Unlike many states, the governor of the state of Alaska is a CEO.
(END VIDEO CLIP)
ACOSTA: So there's a clip from the movie. You know, I talked to the director about this and what exactly he's up to and here's what he had to say. Are you there?
PHILLIPS: Yes, sorry about that Jim. Obviously, we didn't get that cued up in time.
ACOSTA: We don't have that. But, you know, it is going to be interesting to watch tonight. The movie is going to be released nationwide in a couple of weeks and it's going to have people talking about Sarah Palin, which is exactly what she wants. Whether that means that she's running for president, we're just have to wait and see.
PHILLIPS: All right, Jim Acosta there in Bettendorf. Jim, thanks.
Michele Bachmann has moved on from Iowa and fellow Republican Rick Santorum has actually moved in. Yesterday, he told crowds that he'll continue to fight same-sex marriage.
Bachmann continues on in New Hampshire. Tim Pawlenty, well, he's in New York to deliver what he calls a major address on foreign policy.
OK, it's happening right now, thousands of demonstrators outside the Greek parliament building in Athens. Throwing stones at riot police. Zain verjee has been following this for us all morning out of London.
So, Zain, you know, these protesters, they're furious over all the cuts that are taking place, but the government really doesn't have any other choice right now.
ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: No, Kyra, the government is between a rock and a hard place. What they have to do is hold this votes tomorrow where they're going to have to agree on this really tough austerity package, which is going to mean about 20 percent job cuts, higher taxes, cuts in government spending and people, Kyra, are really hurting.
People are getting poor very quickly. You know, pensioners aren't getting their pensions. Workers aren't getting paid. It's a really difficult situation in Greece right now. There's a 48-hour general strike because people are so mad and so worried about the situation and these are the kinds of scenes you're seeing right now.
People demonstrating across the day today in Athens, but if the government does not pass those austerity plans, that's going to mean they're not going to get the money they have to get in order to pay down their debt because if they default on that debt, it creates a massive ripple effect throughout Europe.
The market's confidence will be hurt and also for the U.S. financial system, it also has links to European banks and European banks for example in France or Germany, hold Greek debt. You know how they said Lehmans was too big to fail? Here in this part of the world, they're saying how Greece is too interconnected to fail. Kyra --
PHILLIPS: All right, we'll be following all the developments there. It actually looks pretty calm at this point, Zain, but sure wasn't within the last couple of hours. We'll track it.
A deadline is looming in Washington. We're talking about August 2nd. That's when the government won't be able to pay its bills. So what will it mean for Main Street? We'll explain.
If you thought Charlie Sheen was finally fading into obscurity. Well, think again. Word is, he's signed on to a brand new sitcom. (COMMERCIAL BREAK)
PHILLIPS: Checking stories cross country. A federal judge has blocked two key provisions of Georgia's tough new immigration law. One would require police to check the immigration status of criminal suspects who cannot provide ID. The other would punish suspects who transport or house someone in the country illegally.
Congresswoman Gabrielle Giffords appeared in public for the first time since being shot in the head nearly six months ago. She accompanied her husband, Mark Kelly, who received an award at the Houston Space Center. Our affiliate KCRK reports she received a standing ovation.
Former NCA state or former North Carolina State basketball star Lorenzo Charles died in a bus crash. It happened yesterday in Raleigh. He was driving the bus and was the only person on board. You remember Charles scored the winning basket in the 1983 NCAA championship game.
August 2nd. That's when the government will hit the debt ceiling. Its legal borrowing limit and lawmakers are still trying to hammer out a deal. Alison Kosik at the New York Stock Exchange with the details.
So, Alison, let's talk about what the debt ceiling means for you and me.
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Kyra, the short answer it means the government won't be able to pay its bills. Treasury Secretary Tim Geithner will have to prioritize the government's obligation.
The big question for him is going to be, which bills should the government skip and the thing is, no one knows because the fact is, you know, this has never happened before. But there's a lot of speculation that payments would be delayed to contractors and federal workers.
I mean, you know, think about all the government does at this point. It pays out everything from Social Security and unemployment benefits. It funnels money to state and local governments.
It does all of this and the speculation is that could be cut off. Now, Timothy Geithner has been warning of serious repercussions. He has been sounding the alarm bells.
Most recently in a letter in May, he said that the failure to raise the debt limit would force the U.S. to default on obligations like payments to our service members, citizens, investors and businesses. It would be an unprecedented event in American history. Kyra --
PHILLIPS: And so, let's talk about what it could mean for the broader economy. KOSIK: Well, you know, at the very least, Kyra, hitting the debt ceiling, saying this very lightly here, you know, it could just only hurt the economy at this point. It's going to wind up damaging the faith that creditors around the world have in the U.S.
You know, think about it, who wants to invest in a country that can't manage its own finances and already we're seeing ratings agencies say that they're going to cut their rating on U.S. debt if we do hit the debt ceiling. That will only drive away investors.
Also how it's going to hurt your portfolios? Well, stocks are going to likely sell off, so you're going to see that big hit on your 401(k). Also, one more thing think about those delayed payments.
If a government check is late that hurts someone else's cash flow, so that person or business may spend less. So what you're seeing here is a big ripple effect if some sort of conclusion is not reached by August 2nd. Kyra --
PHILLIPS: All right, Alison Kosik, thanks.
Next, Tom Hanks has a new movie and his son might just have a new career as a rapper.
Plus, Prince William and Duchess Kate head to Canada this week where a couple of royal controversies await them.
(COMMERCIAL BREAK)
PHILLIPS: Charlie Sheen maybe back on the air, Tom Hanks' son a rapper and Beyonce tells CNN she's ready to hit the campaign trail. "SHOWBIZ TONIGHT" host, A.J. Hammer live in New York. Good to have you back, A.J. It seems the reports of Charlie Sheen's return may have been greatly exaggerated?
A.J. HAMMER, "SHOWBIZ TONIGHT": Yes, Kyra, the story out there is that Sheen has this deal with Lions Gate to star in a new sitcom and according to some reports the show is sparking a massive network bidding war, but that may be as you say a little exaggerated.
TBS, which is a part of our company here at CNN, they have publicly denied that they're in talks with Sheen and as far as we can tell, nobody else has stepped up to admit to being interested in the Sheen project.
There are also reports that in order to prevent Sheen from ever being able to come back to his old job at "Two and a Half Men," that show is actually going to kill off his character, plus, and I know this is going shock you this morning, Kyra.
It looks like Charlie has lost the last of his goddesses. You may remember his two girlfriends who were everywhere with Sheen earlier this year. One of them broke up with him through a text message that was back in April.
Well, TMZ, Kyra, says that the second just moved out of his house on Monday. My only question is, why did she hang around so long?
PHILLIPS: What's a bachelor to do. He's such a catch. All right, A.J., Tom Hanks, we had a little fun with him last week. He stopped by to chat. Now, his son making entertainment news, a rapper? Really?
HAMMER: Yes, apparently, he is still trying to become a rapper. We're talking about Chester Hanks here, but his stage name Chad Hayes. Now he just had a show in Chicago that was over the weekend.
Both of his parents were right there reportedly to support him in the audience of the show. The north western student has put some of his music online, so if you are eager to check it out yourself, just start Googling, Chad Hayes.
And as for his famous dad, well, Tom Hanks premiered his new movie "Larry Crown" in Hollywood last night. "SHOWBIZ TONIGHT" of course, was right there. Hanks breaking news to us, telling us "Toy Story 4" is in the works.
Tom even joked that he's hoping among hope that they'll bring him back as Sheriff Woody. Kyra, it's hard to imagine a "Toy Story" without Tom Hanks as Sheriff Woody.
PHILLIPS: That's true. He just wears all kinds of hats, doesn't he? Beyonce, she's coming out possibly saying she's going to join the campaign trail?
HAMMER: Yes, she's a big fan of our president, Kyra. She was on "PIERS MORGAN TONIGHT" right here on CNN last night to promote her new album. Now the reviews for this album had been pretty mixed.
I still think it's going to be a huge seller for Beyonce. She did tell Piers that one of the highlights of her life so far was performing for the president at his inauguration. Let's watch what she said.
PHILLIPS: We're not going to listen to what she said?
HAMMER: Still waiting. Maybe we're not.
PHILLIPS: I'm -- we got it.
(BEGIN VIDEO CLIP)
BEYONCE KNOWLES, MUSICAL ARTIST: I can say probably when I sang "At Last" for the president, I think you know, my father, all of his history, he grew up in Gadsen, Alabama. And he was escorted to school every day because he was one of the first African-Americans in his school and my mother, you know, in her day, she couldn't ride the front of the bus.
(END VIDEO CLIP)
HAMMER: Yes, having spent a little time with Beyonce, I can tell you for sure that she is completely humbled by everything that has happened to her in her life and career, so certainly that moment, performing at Obama's inauguration, pretty spectacular for Beyonce. It's nice to see her talking about that.
PHILLIPS: Thanks, A.J. And if you want anything, everything and anything breaking in the entertainment world, A.J.'s got it every night on HLN, 11:00 p.m. Eastern on "SHOWBIZ TONIGHT."
Coming up, dogs move back in to Michael Vick's House of Horrors, but don't worry it's gotten an extreme makeover.
Today, Sarah Palin heads to Iowa for the premier of her movie about her so does a movie star run for president? Political buzz just ahead.
(COMMERCIAL BREAK)
PHILLIPS: Let's check top stories now.
James "Whitey" Bulger wants the government to pay for his defense, even though the feds found more than $822,000 hidden in the wall of his apartment. A judge will decide today who will foot the bill.
A computer hacker who cost Sony $24 million is going back to work for Facebook according to the "Wall Street Journal." George Hotz was sued by Sony after he cracked the Playstation three code. He also takes credit for unlocking the iPhone allowing it to be used with other wireless carriers.
The Senate Foreign Relations Committee holding a hearing right now on U.S. involvement in Libya. Some members of Congress believed the president is violating the War Powers Resolution.
All right, political buzz, your rapid fire look at the hottest political topics of the day. Three question, 20 seconds on the clock.
Playing today, Democratic National Committee member Robert Zimmerman, CNN contributor and independent John Avlon and Republican strategist, Cheri Jacobus.
First question, guys, Michele Bachmann continuing to rewrite history. Recently, the Revolutionary War started in New Hampshire this morning, John Quincy Adams, one of our founding fathers. So is candidate Bachmann ready to stand up for all the presidential scrutiny? Robert?
ROBERT ZIMMERMAN, DEMOCRATIC NATIONAL COMMITTEE MEMBER: Now, Kyra, in defense of Michele Bachmann, she did have a fact checker, Sarah Palin. It's not just -- it's not just Michele Bachmann's stubborn refusal to accept history.
As alarming to the fact she refuses to accept science, the climate change or that concept called evolution are totally beyond her. She will withstand the scrutiny of a late night comics.
PHILLIPS: Sherry.
CHERI JACOBUS, REPUBLICAN STRATEGIST: You know, Michele Bachmann cannot afford to make gas because a lot of the gas are invented by the people.
For example, the John Wayne controversy, John Wayne, the actor was born in Iowa. His parents lived in Waterloo right up until the time he was born. So she has to be careful because people are going to be hard on her, but as long as we have Joe Biden out there in public life, anybody else in public life is on safeguard.
PHILLIPS: John Avlon.
JOHN AVLON, INDEPENDENT AND CNN CONTRIBUTOR: Look, the pattern is the problem. When she said the founding fathers fought to end slavery, that's a problem. Folks on the far right want to cast this between George Washington and Barack Obama.
If they're going to cast themselves to be inherent to the founding fathers, they've got to get their history right and can't keep falling on their face in this regard.
PHILLIPS: OK, question number two. Today, Sarah Palin heading to Iowa for the premier of her movie about her. So does a movie star run for president? You know, it's worked before. Cheri?
JACOBUS: If she doesn't have fundraising underway already and she doesn't have an organization, I don't see how she can do well in Iowa. However, if she were to just say, hey, I'm in and suddenly, her numbers are way up in Iowa, she could surprise everybody. Then she's a huge threat to every Republican in the race and especially to President Barack Obama.
PHILLIPS: Robert?
ZIMMERMAN: You know, sure a movie star can run for president. But we're talking about Sarah Palin. And after her last reality TV show got canceled and her last book didn't do too well, I'm not sure she qualifies. Her movie's going to have the same impact on our culture as those great classics like Eddie Murphy's "The Adventures of Pluto Nash" or "Gigli" with Ben Affleck and Jennifer Lopez.
PHILLIPS: John Avalon.
AVLON: Wow. Look, Republicans do have a history of elevating movie stars to office. Reagan, Schwarzenegger. The problem is is that Palin's moving in the opposite direction. She needs to decide whether she wants to be a celebrity or she wants to be a public servant, president of the United States. Right now, she seems more interested in being a celebrity and building her brand than doing the hard work of building a presidential campaign.
PHILLIPS: All right, guys. The Buzzer Beater, ten seconds each. Even President Obama joining the fun in Iowa today with no real Democratic challenger. What should his biggest concern be right now? Robert? ZIMMERMAN: He has to energize the Democratic base around the country and Iowa in particular, and he can't get in the way of Newt Gingrich or Michele Bachmann or Sarah Palin's press.
PHILLIPS: Whoa! Sherry.
JACOBUS: Barack Obama's on a political trip right now as we know, and his biggest fear, his biggest problem, is Sarah-Bachmann- Romney in Iowa.
PHILLIPS: John.
(LAUGHTER)
AVLON: No. President Obama needs to be focused on the economy, dealing with the deficit and debt and reconnecting independent voters. Those three things are the path to re-election. If he fails on those, he'll have a real hard time converting in the general election -
(BUZZER SOUNDS)
PHILLIPS: John, Robert, Sherry, Thanks for weighing in, guys.
JACOBUS: Thank you.
ZIMMERMAN: Thanks so much.
PHILLIPS: Royal honeymooners Prince William and Duchess Kate, about to head across the pond. They kick off their visit to Canada later this week. While Canadians are famously pretty polite, there's a couple of issues that could crop up.
Zain Verjee, of course, one of the controversies involves hockey.
VERJEE: Yes. It does. It's a real controversy there, Kyra.
You know, so, William and Kate going to Canada, expected. We knew this was going to happen, but they're going to a place called Yellowknife. That's in the Yukon in the northern territories. And the whole spat is about people being annoyed, why should they go there because it's costing Yellowknife and the local government there $200,000.
On the other side, they're saying, well, this is a great boost for tourism. Prince William is going to be playing ball hockey on the street. Just get there, roll his sleeves up and start playing. And it will be really good for Yellowknife. It will put on the map. He's going to meet with political leaders, youth leaders, some of the Aboriginals there of the Inuit community.
They're just saying why should the taxpayers have to pay for their two days in Yellowknife. But it puts hockey on the map. Kyra?
PHILLIPS: Yes, it does. All right. We'll see what happens. Zain, thanks.
VERJEE: All right. Aye?
(LAUGHTER)
PHILLIPS: Computer hackers attacking the nation's cell phone system then going after personal financial records and even the country's electrical grid. Can government and industry even prevent a cyber attack?
(COMMERCIAL BREAK)
PHILLLIPS: All right. Let's check stories making news "Cross Country." In Michigan, a 95-year-old grandmother involved in the latest TSA controversy is speaking out. She admits having to remove her adult diaper to get through airport security was a wee bit embarrassing, but overall, believe it or not, her take on the whole thing might surprise you.
(BEGIN VIDEO CLIP)
LENA REPPERT, 95 YEARS OLD: Just didn't really bother me. I just thought it was part of their procedures. I think it bothers my daughter more than me because - I guess I'm too old to care.
(LAUGHTER)
(END VIDEO CLIP)
PHILLIPS: Far too sweet.
In Louisiana, police responding to an accident got a little more than they bargained for. Once the driver was removed, they started processing the car and found fireworks and ten pipe bombs. The ATF has been called in to help with the investigation.
In Virginia, Michael Vick's former home where he trained and abused fighting dogs is off the market. It's been bought by a dog rehab group, and volunteers say the idea was kind of creepy at first. But now, it seems like the perfect fit.
So, how prepared is the nation to deal with a major cyber attack? CNN homeland security correspondent Jeanne Meserve reports on what a simulated exercise concluded about just a scenario.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Up to 20 million and counting of the nation's cell phones have stopped working so far today in what officials claim is the largest communications crisis in the cell phone era.
JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT (voice-over): The reason? A cyberattack. As government officials convene, there is one overarching question.
UNIDENTIFIED FEMALE: Is this an act of war, not a criminal act?
MESERVE: The infected smart phones show a video of the Red Army, raising speculation the Russians are behind the attack. Meanwhile, the crisis expands.
UNIDENTIFIED MALE: Incidences of identity theft and online financial fraud having increased dramatically.
MESERVE: Officials discuss the possibility of shutting down the infected smart phones, but government can't do it.
STEWART BAKER, ROLE IN DRILL, CYBER COORDINATOR: I'm actually shocked to hear that we don't have this authority. If this was someone with smallpox wandering through the Super Bowl, we would have the authority to quarantine them.
MESERVE: Can the military assist? What powers does the president have?
JAMIE GORELICK, ROLE IN DRILL, ATTORNEY GENERAL: We are operating in a bit of uncharted territory, as you know.
MESERVE: The attack is traced to a server in Russia. If the U.S. shuts it down, will the Russians see it as an act of war? And is Russia really behind the attack?
Then more grim news -- the Internet is infected, the power grid impacted.
UNIDENTIFIED MALE: We are also now receiving alarming reports of significant and growing power outages in major metropolitan areas in the eastern half of the United States.
MESERVE: There is discussion of nationalizing the power grid or mobilizing the National Guard to protect it.
BENNETT JOHNSTON, ROLE IN DRILL ENERGY SECRETARY: But keep in mind there are over 160,000 miles of transmission lines. You cannot guard every mile of that.
MESERVE: And the cyberattack goes on.
UNIDENTIFIED MALE: And in corporate boardrooms and IT centers across the country, our nation's leaders are wondering if their networks are really secure and if this crisis might indeed spread into their systems.
MESERVE (on camera): This game and others like it have raised a lot of questions about roles and responsibilities, legal authorities, private sector coorperation and more. Government and industry are working through those issues and trying to find solutions. But they are also to improve defenses, to thwart any massive cyber attack.
Jeanne Meserve, CNN, Washington.
(END VIDEOTAPE)
PHILLIPS: A tough new law aimed at keeping babies safe goes into effect. As of today, it's illegal to sell or donate a crib that isn't up to safety standards. In fact, the standards are so high now for all cribs that the government says you're better off buying a new one and just tossing out the old one.
A massive wildfire rages near a nuclear lab, and thousands of people living nearby have been evacuated. New Mexico's governor joining me live right after the break.
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PHILLIPS: Some stories developing later today we're watching. President Obama's going to talk about the economy following a visit to an Iowa factory. Those comments, 2:05 Eastern time.
And Wisconsin governor Scott Walker giving the keynote speech at a Republican National Committee fundraiser in New York City. That starts at 5:00 Eastern.
And at 6:00 Eastern, Sarah Palin will be in Iowa for the premier of the movie all about her political career.
It's been 24 hours since she launched her presidential campaign, and Michele Bachmann's already stirring it up. You know, all eyes are on you when you're running for president, and people expect certain things from you. Like knowledge of U.S. history among a number of other things.
(BEGIN VIDEO CLIP)
REP. MICHELE BACHMANN (R), PRESIDENTIAL CANDIDATE: It isn't my job to go and fact check sources that come out in publications, so I was using that quote. But you're right --
JOHN KING, CNN HOST, "JOHN KING USA": It's your job as a candidate when people - the left --
BACHMANN: You have a very good point, though, that I think when you're in the presidential realm, I do think that mis-message discipline is required. And I that is something that, you know, all of us have areas we need to do better on, and that's certainly one I'll pay a lot of attention to.
(END VIDEO CLIP)
PHILLIPS: Carol Costello. A lot of people paying attention to Michele Bachmann. Yes, a very smart woman, a law degree, but at the same time, a number of I guess, missteps? Mishaps? Misquotes?
(LAUGHTER)
CAROL COSTELLO, CNN CORRESPONDENT: That's a polite way to put it. There's no doubt about this. Michele Bachmann has been on a roll. She dazzled at CNN's Republican debate. Heck, she's tied with Mitt Romney in the Iowa polls.
But this morning, she played defense again on her vision of American history. First on ABC's "Good Morning America" when she again insisted our founding fathers worked tirelessly to end slavery.
(BEGIN VIDEO CLIP)
BACHMANN: Well, if you look at one of our founding fathers, John Quincy Adams, that's absolutely true. He was a very young boy when he was with his father, serving essentially as his father's secretary. He tirelessly worked throughout his life to make sure we did in fact one day eradicate slavery --
GEORGE STEPHANOPOULOS, ABC'S "GOOD MORNING AMERICA" CO-HOST: He wasn't one of the founding fathers!
BACHMANN: -- grateful for that work.
STEPHANOPOULOS: He was a president, he was a secretary of state. As a member of Congress, you're right. He did work to end slavery decades later. But -- so you're standing by this comment that the founding fathers worked tirelessly to end slavery?
BACHMANN: Well, John Quincy Adams most certainly was a part of the Revolutionary War era. He was a young boy, but he was actively involved.
(END VIDEO CLIP)
COSTELLO: OK. It wasn't Bachmann's first gaffe when it comes to history. When Bachmann announced her presidential run in Iowa, she played a bit of cultural history and she mentioned John Wayne.
(BEGIN VIDEO CLIP)
BACHMANN: What I want them to know like John Wayne was from Waterloo, Iowa, that's the kind of spirit that I have, too.
(END VIDEO CLIP)
COSTELLO: Except John Wayne wasn't born in Waterloo but in Winterset. John Wayne Gacy, a serial killer, was born in Waterloo. Other gaffes had to do with American history. On a political trip recently to New Hampshire, Bachmann said --
(BEGIN VIDEO CLIP)
BACHMANN: Here's the state where the shot was heard 'round the world. (INAUDIBLE)
(END VIDEO CLIP)
COSTELLO: But those shots were fired in Massachusetts. Bachmann told "AMERICAN MORNING" just this morning, hey, no one is perfect. People make mistakes.
The problem for Bachmann, Kyra, these mistakes take away from any candidate who strives to be a top-tier presidential contender because frankly, those gaffes just get in the way of what her message should be. What she wants her message to be, and that is to create jobs for our economy.
PHILLIPS: Carol Costello, thanks so much.
We want to return to this hour's top story now. The raging wildfire that is charged within a mile of the Los Alamos Laboratory. That's where the first atomic bomb was developed and remains one of the most nation's most secretive research centers for national security. There's a lot of concern about the safety of the facilities there.
Joining us now for an update on the conditions, New Mexico governor, Susana Martinez. Governor, thanks for joining us. A mile from the lab. Are you concerned?
GOV. SUSANA MARTINEZ (R), NEW MEXICO (on the phone): Of course. We are all concerned, and that is the reason for the evacuation of the town, the community of Los Lunes (ph). And that is the reason why the second Type One team has been brought in along with additional arial support, to make sure the lab is completely safe.
PHILLIPS: And not only the lab and creating security barriers, obviously, but what about the safety of the residents?
MARTINEZ: Absolutely. Yesterday, there was a very successful evacuation of Los Lunes. It was very organized and done very well. People were constantly talking about how well the National Guard and law enforcement worked together to make sure people left the community, were accommodated and shelters were provided, were provided a place to be. They had food for them, a safe place.
Also, the National Guard and police department and state police are providing security of their homes during the time that they will be away from their residents.
PHILLIPS: And final question, Governor, do you have enough firefighters to fight this? Are you going to have to bring in assets from other states?
MARTINEZ: Oh, we are bringing in, of course, assets from all over. We have had volunteers from everywhere. Throughout the country, we had not only local firefighters. We also have firefighters throughout the state that have volunteered, and we have a national resources that are also being brought into the state. It is a number one priority to maintain the safety of the people of that community as well as the lab.
PHILLIPS: Governor Susana Martinez, appreciate you calling in. We'll continue to follow the story, of course.
The NBA owners are on the brink of locking out the players, and the NFL lockout goes on. Fan fury. Stephen A. Smith definitely brings his A game to this.
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PHILLIPS: OK. The NBA's collective bargaining agreement expires midnight Thursday, and if there's no deal by then, well, the owners could impose a lockout. And you've heard that one before, haven't you? Now, the NFL's lockout is still going on, and fan fury would probably explode if both football and basketball were lost this year.
So we better talk about this and Stephen A. Smith, radio host and ESPN.com columnist, joining us now from New York.
So, Stephen, you know, is the NBA really losing that much money? I mean, the ratings, the merchandise sales. Those two things alone are so strong.
STEPHEN A. SMITH, SPORTS RADIO HOST AND WRITER: Well, the NBA will tell you that 22 of the 30 teams in the league have been losing money. And that essentially, you know, they've been losing approximately $300 million or a little bit more than that each season and obviously because of that, you know, revenue is a big, big issue with them. You're talking about players getting 57 percent of the revenue whereas owners getting approximately 43 percent. So, they're looking to make a multitude of changes, and that's really where they're butting heads right now.
PHILLIPS: Well, you really think the owners are ready to sacrifice the season for money?
SMITH: There's no question about it. When you've got 22 of the 30 teams in the league losing money, and the NBA will tell you that they've completely exposed their books to the NBA Player's Association, that indeed 22 of the 30 teams are losing money, then take into account what they're talking about right now.
They're talking about roll backs of approximately $800 million a year over the next ten years where the players are talking about giving back approximately $100 million over the next five years. They're talking about a salary cap. The players would call it a hard salary cap. The league calls it a flex tax.
Nevertheless, there's a whole bunch of mumbo jumbo that goes into the equation, but at the end of the day, there are approximately $7.5 billion to $8 billion apart in terms of what both sides believe should be the end result of an agreement and that's where your problem lies right there.
PHILLIPS: And you're hearing all these numbers, you hear about all this money -- and some fans would say come on. You know, these players make so money, these owners make so much money, what happened to it all being about the game, the love of the game?
SMITH: Well, whoa. First of all, the fans need to get over it. That's number one.
Number two and more importantly, what it really comes down - what it really comes down to, in all seriousness is this, and I've constantly used this analogy on my radio show in ESPN New York and L.A. The fact is, if I come up to you and I gave you a million dollars, you'd have a smile on your face, you'd be happier than a pig in mud because it's a million dollars. But if I had $10 million, a bowl with $10 million in it and only one of us -- only the two of us had access so it and then I give you that same $1 million, you'd say, wait a minute. Why did you get the other nine?
And that's what at the crux of this. You got to follow the dollars --
PHILLIPS: Greed! Greed's at the crux.
SMITH: -- everybody wants a big share.
PHILLIPS: Yes, greed -
SMITH: It's not greed. It's not greed. Well, if you're an owner, if you're an owner and the economic recession has kicked in and you've lost an abundance of money, you want to get some of that back. If you're the players, you want to hold on to the agreement that you have. So, there's really no bad guy in this particular situation considering the economic recession and how it ravaged a lot of teams and owners and the respective cities involved.
But the bottom line is, they've got to make a deal because clearly the NBA is on an upswing. Ratings have been off the charts. It's been a phenomenal basketball season, one of the best I've covered in years. They've got to do something.
PHILLIPS: And fans don't want it to go away. Stephen A. Smith, thanks for weighing in. Appreciate it.
SMITH: My pleasure. Take care.
PHILLIPS: Coming up in the CNN NEWSROOM with Suzanne Malveaux, the story of a woman facing deportation from the United States. What makes this story unique is she's a lesbian, legally married to a U.S. citizen. But a loophole in a federal law could tear apart the couple who has been together for 11 years.
Plus, are you one of those photographers who can't get the focus right, even on auto focus? No worries. We'll show you new technology that allows you to fix the focus after the picture has been taken. That and more on the CNN NEWSROOM with Suzanne Malveaux.
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PHILLIPS: Live to Orlando, Florida. George Anthony, Casey Anthony's father taking the stand now in his daughter's murder trial. Let's listen in.
(JOINED IN PROGRESS)
GEORGE ANTHONY, CASEY ANTHONY'S FATHER: -- hours as long as I could, particular hours and on a particular day.
UNIDENTIFIED MALE: And is it your testimony to this jury that you weren't going there for any romantic interludes, it was just because you were going through console her for her brain tumor?
UNIDENTIFIED MALE: Objection. Asked and answered.
JUDGE: Overruled.
ANTHONY: As I stated, sir, yes, I did go there just to console her because she had confided in me that she was -- that she had a brain tumor or she was having medical issues. And she also explained also that to my wife, sir.
UNIDENTIFIED MALE: Did your wife go to her apartment, too?
ANTHONY: No, sir. My wife never went to her residence at all. No, sir.
UNIDENTIFIED MALE: So, the only one that went to her apartment was you, not your wife. Or you two didn't go together?
ANTHONY: No, but my wife had knowledge that I was at her residence. I had nothing to hide, sir. Never have.
UNIDENTIFIED MALE: Did you, prior to finding your granddaughter, tell Crystal Holloway or River Cruise (ph) that Caylee's death was an accident that snowballed out of control?
ANTHONY: Well, sir, to clarify your question, I never found my granddaughter. To this day, I've never found here. And to say that I had said something to her about -- it's been stated or even by you here that something might have snowballed out of control, that conversation was never there.
I never confided in any volunteers or any people I considered those friends that came into our family to help us out. Never confided anything like that. I wouldn't do that. I was handling everything on my own and with my wife and with my son. That was a private matter for us.
If I was asked by you or the prosecution or the sheriff's department or the FBI or something about my granddaughter I was always -- or about my daughter, I was always giving that information, always gave that willingly, honestly and freely as I possibly could.
