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New Rape Accusations Against Dominique Strauss-Kahn; Jury Deciding Casey Anthony's Fate; Kids at Space Camp Discuss Future Careers; Even With Excellent Credit You Could Be Denied a Home Loan; Backstreet Boys and New Kids On The Block Team Up For Tour; Hackers Put False Story of President's Death on FOX News Website

Aired July 04, 2011 - 15:00   ET

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


BROOKE BALDWIN, CNN ANCHOR: Hey, Deb Feyerick, thank you very much.

And hello to all of you. I'm Brooke Baldwin. Happy Fourth.

We have a lot to get to here this hour. But I want to begin with this. Take a look.

(BEGIN VIDEOTAPE)

BALDWIN (voice-over): New accusations of rape against Dominique Strauss-Kahn. The former power banker could soon face new charges.

UNIDENTIFIED FEMALE: To get answers, it would take a risky, unusual plan: Send a convicted drug dealer undercover into a dangerous prison.

BALDWIN: His mission: Befriend a suspected serial killer. You're about to find out what happened inside those walls.

And a special treat for you on this music Monday. I sit down with some New Kids and some boys from the Backstreet. The heartthrobs open up about rivals, fans and of course they serenade me.

(END VIDEO CLIP)

BALDWIN: A little bit of everything for you this hour, don't we?

But I do want to begin with the French Socialist party, and they are a major, major force in France. And so they're considering right now bending the rules a bit to allow accused rapist Dominique Strauss- Kahn to run for president. That's right, president of France.

So if you were with me just this past Friday, you know that Strauss-Kahn has been released from house arrest in New York, because the Manhattan district attorney admits his chief witness, Strauss- Kahn's accuser, hasn't been entirely truthful.

Now, even so, Strauss-Kahn still faces the rape charge and he's supposed to appear in court in just two weeks' time. Strauss-Kahn running for president is not just idle speculation here. By some accounts, he had been considered a potential front-runner in that race.

Now the Socialists are saying they could fudge the deadline to declare an interest in running in deference to Strauss-Kahn's legal situation. But hold the phone because this French novelist is scheduled to go to court tomorrow to file an assault charge against Dominique Strauss-Kahn. This accuser here says Strauss-Kahn tried to force himself on her in an empty apartment. This goes back to 2003.

She says her mother who liked Strauss-Kahn is a Socialist politician talked her out of filing charges back then.

Joining me now to talk a little bit more about this, French television journalist Christian Malard.

And, Christian, I also want to point out that we have just learned here at CNN that --

CHRISTIAN MALARD, FRENCH JOURNALIST: Good afternoon. Happy Fourth. Happy Fourth of July.

(CROSSTALK)

BALDWIN: Thank you. Thank you very much.

We know Strauss-Kahn is now filing countercharges. But can you just -- what are the circumstances surrounding this particular case where you are in France?

MALARD: I don't think it's going to change much things.

This girl, Tristane Banon, has been drawing the attention for the second consecutive time in a few weeks. It started at the very beginning of the Strauss-Kahn affair in New York. And now she gets back again because probably she's disappointed by the way that judicial things go in the United States right now. She probably has the feeling that Strauss-Kahn might be freed very soon, not having any sexual crime assault and that he might come back to France in the coming days, which is a possibility. We don't know yet. We have to wait until tomorrow, after tomorrow, but definitely not the 18th of July as it was planned initially.

BALDWIN: Right. Right.

MALARD: So probably she wants to draw the attention once more. But I don't think it's going to change a lot, because everybody now expects unless we are proved the opposite that Dominique Strauss-Kahn should be back to France very soon.

BALDWIN: Well, I want to get French opinion from you because if you look back to this past weekend, the French had a lot to absorb. The different twists and turns here in this case. My question is do the French in general believe that Dominique Strauss-Kahn is being treated fairly by the U.S. justice system?

MALARD: Well, you know, the opinion, the public opinion in France right now is very mixed. At the very beginning, Strauss-Kahn was very popular as you know, before the Strauss-Kahn affair.

And now everything has been developed and we know about the whole story going on. It's a mixed opinion. The mixed opinion is there.

(CROSSTALK)

BALDWIN: But how do they feel about the justice system?

MALARD: I think half of the French would like to see Strauss- Kahn get back into politics, 49 percent, but a majority thinks that he has no more chances to be elected as the next president in France in about 10 months from now.

So we will see. He might be a spoiler. We never know. Already we feel a split inside the Socialist Party among the top contenders of the party, and it seems that his image, his shadow is wavering over the party and it's clear that there's embarrassment at some place inside the party with the top contenders like madam Aubry, who decided to run. And she was the one who said if Dominique Strauss-Kahn doesn't go for running for presidency, I will go. She already did. And now she confirmed.

(CROSSTALK)

BALDWIN: Allow me to jump in, because you're talking specifically about the Socialist perception perhaps which I do want to ask you about. But just overall, court of public opinion in France, do they believe that Strauss-Kahn has been ill-treated by the U.S. justice system?

MALARD: Yes, yes.

BALDWIN: Yes.

MALARD: I must admit that I heard a lot of people saying they have been outraged, outraged by the way -- but what's more -- let's put it this way. We have to respect your justice in the United States.

We have differences. Definitely, it's a kind of cultural gap between the United States and all Europe, between the United States and France in particular, concerning justice. And it's clear that the French still have in their mind the pictures of television on different screens when they saw Strauss-Kahn arrested by the police, by two policemen, having the handcuffs and everything, pushed into the car.

They just got the impression they were working a police series at the New York Police Department, series on television. And all of a sudden now they say, come on, prosecutor Vance, the man who pushed Strauss-Kahn into the Rikers Island prison and the man who has been so tough with him, now comes up and say, oh, the house -- maid of the Sofitel Hotel is not reliable. She's been lying and probably Strauss- Kahn did not commit the rape.

So the French say, my God, what kind of justice do America have? (CROSSTALK)

BALDWIN: Sure, but like you say, bottom line, it happened allegedly here in the United States. Thus, you to respect the U.S. justice system, as we would equally in France if something like this happened there.

MALARD: Sure. Sure.

BALDWIN: I do want to point out this poll, this poll coming out tomorrow saying 54 percent of the French do not want Strauss-Kahn to run for president. So back to the Socialist Party here, why is it that the Socialist Party, Christian, seems willing to bend its own rules? Maybe change that July 13 deadline to allow a little bit more time to determine whether this man wants to run for president?

(CROSSTALK)

MALARD: Well, you are right to pose this question. But I think that the game should be over very soon, because most of the Socialists now realize that Strauss-Kahn being back into the political game inside the Socialist Party might be hurting them, and they definitely want to try to win this election desperately.

BALDWIN: I see.

MALARD: They have been waiting for that for so -- a long time. And probably you are totally right. They will not give a chance to Strauss-Kahn to be a spoiler in that game.

BALDWIN: I see. So even if they do adjust the deadline, you think he's done?

MALARD: He's done, yes, probably.

BALDWIN: Christian Malard, thank you so much for calling in. Appreciate it.

MALARD: Thank you.

BALDWIN: And if it's happening and it's interesting, right now, you're about to see it rapid fire. Let's go, beginning with Hugo Chavez showed up at home in Venezuela today. This is a dramatic return just in time for his country's bicentennial tomorrow.

The Venezuelan president had been treated for a cancerous tumor in Cuba, and some people thought he would be there for months and months. But now, as we're reporting, he's home and actually slated to speak from the balcony of his palace in just a couple minutes from now.

The leader of Libya's rebel movement says he's OK with Moammar Gadhafi remaining in the country so long as he's not in power. Rebel spokesmen have previously said that Gadhafi had to go before they would agree to any kind of peace or cease-fire deal. NATO and Russian officials are meeting today. Their differences about the Libya campaign is a huge topic at those talks.

And if you ever doubt that being a bomb technician was a bit of a dangerous job, take a look at this video with me. A surveillance camera here capturing a car bomb going off there in Thailand. The blast throws the bomb tech to the ground, but then he just gets up and walks it off. There he is down. Apparently he's A-OK.

The July Fourth holiday begins, too. Joey Chestnut, baby. There he is, an elite competitive in action, throwing them back. The reigning international hot dog eating champion made it five straight today, winning the traditional Nathan's-sponsored dog-a-thon at Coney Island. I'm a little ill looking at this. Don't know about you. Here are the numbers, 10 minutes, 62 hot dogs.

So apparently though he didn't break his own record, but it was enough to score the Mustard Yellow Belt for the fifth consecutive year.

(BEGIN VIDEO CLIP)

JANE VELEZ-MITCHELL, HEADLINE NEWS ANCHOR: This is live television in progress. You can see the media. This is Cheney Mason and the entire media right there.

Cheney, what do you think? Do you wish you had an opportunity to rebut what Linda Drane Burdick said today?

(END VIDEO CLIP)

BALDWIN: HLN's Jane Velez-Mitchell a bit out of breath chasing down defense attorneys here in the Casey Anthony murder trial. After weeks of testimony, drama, bitter arguments, And tears, at this very moment the jury is deciding the fate of the accused mother. And the verdict could come at any time.

We are live outside the courthouse for you. Also, Holly Hughes is here to break down which legal team had the better last-minute argument.

Plus, we're getting new information, profiles of some of these jurors. That's next.

(COMMERCIAL BREAK)

BALDWIN: Casey Anthony's fate is now in the hands of the jury. The judge gave his instructions just before noon today. And after jurors started their deliberations, the legal teams left the courthouse and Jane Velez-Mitchell from our own sister network HLN literally chased them down. Watch this.

(BEGIN VIDEO CLIP)

VELEZ-MITCHELL: This is live television in progress. You can see the media. This is Cheney Mason and the entire media right there.

Cheney, what do you think? Do you wish you had an opportunity to rebut what Linda Drane Burdick said today?

What are you going to do now? How are you going to spend your time during the verdict watch, sir?

UNIDENTIFIED MALE: Get that microphone out --

VELEZ-MITCHELL: OK. All right. Sorry. Just asking you a couple questions.

(END VIDEO CLIP)

BALDWIN: So their work is now being done.

I want to go to David Mattingly who's been covering this trial for us outside the courthouse there in Orlando.

And, David, a jury is deliberating, been deliberating now for a couple of hours. The prosecution made sure they went in with a very powerful image in front of them. What was that image and why is this so significant?

DAVID MATTINGLY, CNN CORRESPONDENT: What they did, they put a photograph up in front of the jury, it's actually two photographs. One was showing Casey Anthony partying out on the town in a hot body contest. The other was her, a close-up of the tattoo she had put on her shoulder in Italian reading the sweet life.

Those are two things that happened while her daughter was missing before she even told anyone about her being gone. Now, that according to the prosecution shows everyone her mind-set during that time. That she was celebrating and they contend that they believe that Caylee Anthony had to die so that her mother, Casey, could live the life she wanted.

BALDWIN: We know that Anthony is accused of first-degree murder. But as we heard the judge give these jurors these different instructions, they have several other options. If you could just explain those different options for me, David.

MATTINGLY: Yes, this isn't very simple. There are some set counts against her. One is premeditated murder, murder in the first- degree. That carries the death penalty or life. But they could also find lesser degrees here if they decide not to go with that. They could go with murder in the second degree, which carries a life sentence, manslaughter, which would be 15 years.

They could also get a third-degree felony murder. And there are other things as well. But the other counts that they're looking at here, aggravated child abuse, that carries 30 years. Aggravated manslaughter of a child, that carries 30 years. And then the incidents of her lying to police officers, each time she did that, that's another year if she's found guilty of that. So, they have a lot to consider while they're sitting there in that room.

BALDWIN: OK, David Mattingly, thank you so much live in Orlando. I want to talk a little bit more about and also into the juror profiles. Let's go to criminal defense attorney and former prosecutor Holly Hughes with me with some analysis.

Let's just use what David was talking about as a jumping off point. So there are all different these potential charges. Explain how the jury weighs each of these options as they're deliberating.

HOLLY HUGHES, DEFENSE ATTORNEY: Well, that's why the jury charge is so important, Brooke, because in the law, each crime has what we call elements.

And the prosecution having the burden of proof has to prove each and every element in order to establish to the jury, yes, this person committed the crime, so when you're looking at first-degree murder, they're going to have to prove that premeditation element. And that's why Judge Perry said, hey, there has to be some premeditation here. There has to be the intent to kill here.

BALDWIN: The intent.

HUGHES: Yes, absolutely, for your first-degree.

And that's why he defines everything. And he told the jurors, hey, look, premeditation it doesn't have to be a long period of time. It could be formed in an instant. And then the second act is done, it could be instantly regretted. So there just has to be enough time for the person to think on it.

So the really important point is, each one of these what we call lesser included crimes, David was talking about it's a possible manslaughter, could be a second-degree, not a first-degree -- they have different elements. So if you take out the intent element, she didn't necessarily intend to kill this child, but she did something that was so depraved and so wantonly reckless as to disregard any respect for human life, then you're looking at a lesser charge.

So that's why he has to go through that very long, very boring list of, these are the possible crimes, these are the elements. The jury's going to get in the back, they're going to look at that and they will take pieces of evidence and say, does this show intent, does this show premeditation, and figure out what exactly they think the prosecution proved.

BALDWIN: What is it I hear, when you look at the jury deliberating, it's like the quicker they deliberate that's good news for the prosecution. The longer and longer they take, that's better for the defense? Is that true for the most part?

HUGHES: No. It's actually a fable.

(CROSSTALK)

HUGHES: There is absolutely no way in the world.

BALDWIN: Can't read into this? HUGHES: No. You absolutely cannot read into it.

Because you look at something like the O.J. Simpson trial, which took, what, a year-and-a-half to try. And they came back so quickly. And you're saying to yourself, there is no way they sat down and went through every single piece of evidence that was presented from either side. And they came out and said not guilty. So, that's definitely not good for the prosecution.

So that old fable, it is impossible to know what's going on. I had a death penalty case one time, Brooke, and we had phenomenal evidence. We had really good solid forensics, and they took forever and ever and we were getting nervous and nervous and nervous. So you just don't know what they're doing.

(CROSSTALK)

BALDWIN: Debunk the myth for me, Holly Hughes.

HUGHES: It's not true.

BALDWIN: Let's go through some of these different juror profiles. So we know there are 17 jurors, five are the alternates and they're in a different room right? So you have these 12 men and women, bits and pieces we're learning.

(CROSSTALK)

BALDWIN: A lot of women, I noticed, women (INAUDIBLE) counseling, nurse, nurse's aide, some working in IT, technology. One was a CNN junkie. How much can we then read into all of this stuff?

HUGHES: Well, what you can do is just your basic psychology that you use every day. You know, you size people up, don't you? A repairman comes to your door, knocks on the door, if you get the creeps you really don't want to let him in your house.

So this is the type of thing that we do every day. We all profile in our own way.

What we're looking at on the main jury is 12 people. You have got seven women, five men. The most interesting thing is that the youngest member of the jury is a 32-year-old man. So six of these folks are parents and/or grandparents. So you have got an older crowd than Casey Anthony is used to running with. You have got people who have raised their own children and are possibly now assisting in raising grandchildren.

That gives it a whole different mind-set than if you had a bunch of 22-year-olds on the jury who would go, hey, we totally relate to this girl. So, yes, you absolutely -- it's got to be a good feeling for the prosecution to know that they have got a mature crowd of people who might also understand the scientific evidence. They might be a little more worldly wise or a little more educated because of the fact that they're not so young.

BALDWIN: And they were selected, what was it, back in May.

HUGHES: Yes.

BALDWIN: So they have been sequestered for quite some time. They found them in Tampa. They bussed them into Orlando. So I imagine this jury's sitting in that room thinking, let's come to some sort of verdict here and be done with this.

(CROSSTALK)

HUGHES: They are champing at the bit.

BALDWIN: Yes.

HUGHES: Because think about this. How fascinating is this? At the end of the day, we watch what happens, and we want to talk about it, right? These folks are in the courtroom, having the evidence presented to them. They're looking at pictures that we don't even get to see on the TV screen. And at the end of the day, they're told by the judge, don't discuss this case amongst yourselves.

(CROSSTALK)

HUGHES: Yes. How frustrating. They're ready to go.

BALDWIN: Holly Hughes, we're watching, verdict watch. Thank you very much.

HUGHES: Oh, yes. My pleasure.

BALDWIN: Still to come here: the royal couple days away from touching down in the United States. But before they do, Prince William takes a very dangerous trip. We will tell you about that and what his wife, Catherine, did during this adventure. That is next.

But, first, as we go to break, many service men and women overseas are missing their families back here at home on this Fourth of July. So in honor of them, take a look at some of these emotional reunions and some pretty fantastic surprises.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: (INAUDIBLE) a brother in Afghanistan that you wish could be here today. I know what that's like. My wife and I had a son in Iraq in the Marines. And, Jessica, when you see your brother --

(CHEERING AND APPLAUSE)

(LAUGHTER)

UNIDENTIFIED FEMALE: OK, open your eyes.

CHILD: Daddy!

CHILD: Daddy! CHILD: Daddy!

(CHEERING AND APPLAUSE)

UNIDENTIFIED FEMALE: (INAUDIBLE)

(LAUGHTER)

CHILD: Daddy!

UNIDENTIFIED MALE: What's up, buddy?

(LAUGHTER)

UNIDENTIFIED MALE: Hey, dad.

UNIDENTIFIED MALE: Oh, my God! Oh, my golly! My boy!

UNIDENTIFIED FEMALE: Oh, lord.

(LAUGHTER)

UNIDENTIFIED MALE: Oh.

UNIDENTIFIED MALE: How you doing?

UNIDENTIFIED MALE: Oh, boy.

UNIDENTIFIED MALE: Happy birthday.

UNIDENTIFIED MALE: Oh, lord.

UNIDENTIFIED MALE: (INAUDIBLE)

(LAUGHTER)

(END VIDEO CLIP)

(COMMERCIAL BREAK)

BALDWIN: The royal tour continues today. Prince William and Catherine spent the day on Prince Edward Island, which is Canada's smallest province. It's also where the country was confederated.

Our royal correspondent, Max Foster, is traveling with the duke and duchess and has more on their day, including a very dangerous adventure for Prince William.

(BEGIN VIDEOTAPE)

MAX FOSTER, CNN CORRESPONDENT: Brooke, the rains finally arrived here in Canada, but it didn't disrupt this very ambitious tour.

Their first stop here in Prince Edward Island was Province House, which is where Canada was confederated all those years ago. Thousands of people lining the routes to see the couple. And they weren't disappointed when they did a walkabout and met many people on the way. And then they left in horse and carriage, so a great deal of pomp and pageantry at the same time.

Then Prince William took to the skies. At home, he's a search- and-rescue pilot. And he wanted to meet his Canadian counterparts who are world-renowned. They are the crews in the world that carry out a particular maneuver which is an emergency landing in these helicopters on water.

William was within this helicopter at the time, so a few frayed nerves, I'm sure, amongst palace aides, but it all went along smoothly. Then the couple took to the water together in dragon boats racing each other across the water. And you saw their competitive sides there. But the crowds absolutely loved all of this interaction during this more informal type of royal tour.

Then, later on, they headed to the beach and saw a few culinary crafts. And they took part in a smudging ceremony, which is a traditional welcome in these parts.

So, the plan -- so the tour going ahead as planned and very successfully. Their next stop tomorrow will be the great outdoors as they call them up in the Northwestern Territories -- Brooke.

(END VIDEOTAPE)

BALDWIN: Max, thank you. Thanks for standing out there in the rain for us today.

And the countdown is on, those four astronauts taking the last shuttle into space. There they are arriving at Kennedy Space Center just a short time ago. But after this Friday morning's launch, what will NASA do next? As experts debate the future of American space travel, I took a trip to space camp. And you're going to hear what the kids think and whether the legendary camp will survive.

That's next.

(COMMERCIAL BREAK)

BALDWIN: This is the last time we will be seeing this. This happened just within the past hour, the crew of the final space shuttle mission arriving there at Kennedy space center in the T-38 jets. There they go, climbing out. They flew in from Houston, landed on schedule for Friday's historic liftoff.

I want to tick off the names, we all need to know them by Friday morning, Commander Chris Ferguson, pilot Doug Hurley, mission specialist Andy Magnus, and Rex Walheim. They're all on twitter. You can follow them. Liftoff is scheduled for this Friday morning.

If you watch the program, you know I get a little geeked out talking about space. I will be in Florida this week covering the liftoff with the rest of the CNN crew. I got to go back to space camp 20 years ago with dreams of going to space myself. And 20 years later the place is still packed with space-inspired youngsters. With this final launch, what happens to them and their astronaut dreams?

(BEGIN VIDEO CLIP)

BALDWIN (on camera): What does that simulate?

UNIDENTIFIED MALE: Zero gravity.

BALDWIN (voice-over): They're at the top of their class.

BALDWIN (on camera): Who really is good at science and math?

BALDWIN (voice-over): Even though the space shuttle program is coming to an end, the desire of these space campers to be astronauts is as strong as ever.

BALDWIN (on camera): What do you want to do when you grow up?

JESSICA FAHRER, SPACE CAMP TRAINEE: I hope to become an astronaut.

BALDWIN (voice-over): It's that heroic quality so appealing to children in all eras that pushes these youngsters toward space.

BALDWIN (on camera): What do you guys think of astronauts?

SEBASTIAN NIGRELLI, SPACE CAMP TRAINEE: Brave, talented.

BALDWIN (voice-over): About 30,000 elementary through high school students come through space camp each and every year at the U.S. space and rocket center in Huntsville, Alabama. Their week of training culminates in a mock shuttle mission.

BALDWIN (on camera): How do you feel about the last space shuttle going up? Disappointing?

BALDWIN (voice-over): Debra Barnhart is the chief here at space camp.

BALDWIN (on camera): What do you say then, because the space shuttle program is ending, and all these kids right here are prepping for missions on the space shuttle, so then what for space camp?

DEBORAH BARNHART, CEO, U.S. SPACE AND ROCKET CAMP CENTER, SPACE CAMP: The end of the program is just like a graduation to me. We're moving on in our national space program to something else.

BALDWIN (voice-over): And these campers have lots of ideas for that something else.

BALDWIN (on camera): What do you want to do when you go to space?

AVERY DALFREY, SPACE CAMP TRAINEE: Go to Mars.

BALDWIN: Mars?

DALFREY: I want to be the first woman on mars.

BALDWIN: High five, sister.

DALFREY: I know one day we're going to live on other planets.

BALDWIN: You think so?

DALFREY: Yes, definitely.

BALDWIN: How are we going to breathe?

DALFREY: There will be oxygen generators.

BALDWIN (voice-over): As farfetched as it sounds, these whiz kids are right on target. They're already planning that next phase of space camp to include inflatable space habitats.

BALDWIN (on camera): What's an inflatable?

BARNHART: When you can launch a structure collapsed inside of a rocket, and then once you get it into space, pressurize it like an inflatable balloon, but they're structures that can be used on the moon or low earth orbit or anywhere in space.

BALDWIN (voice-over): Perhaps pushing the next generation of astronauts further into the next frontier.

(END VIDEOTAPE)

BALDWIN: Don't forget to catch special coverage of the final launch this Friday. There it goes, pretty cool animation we have here at CNN. Hope you join us right here on CNN. Now this --

(BEGIN VIDEO CLIP)

BALDWIN: Here in the Midwest, several young girls went missing. Some were found murdered. Others were never found at all.

(END VIDEO CLIP)

BALDWIN: How far would the feds go to catch a suspected serial killer I went inside this chilling world to find out. This plan here, dangerous, daring. It includes sending a convicted drug dealer inside a high security prison. Don't miss this, a preview of my documentary airing tonight. That's next.

(COMMERCIAL BREAK)

BALDWIN: I want to give you a heads up about a documentary premiering right here on CNN. It's the story about Jimmy Keene, a convicted drug dealer who went on a strange journey to freedom. He was already locked up when he was recruited to go into a maximum security prison, undercover and make friends with a man suspected of murdering potentially up to 30 some young women. Watch this.

(BEGIN VIDEOTAPE) BALDWIN: Here in the Midwest several young girls went missing. Some were found murdered. Others were never found at all, Laurie Depees, 20. Raina Ricin 16 from Indiana, Wendy Felton 16 from Marion, Indiana. Michelle Dewey 20 from Indianapolis, Indiana. All of these cases went unsolved. Officials believed only one man knew what happened.

UNIDENTIFIED MALE: We knew he was responsible for several deaths.

BALDWIN: And to get answers, it would take a risky, unusual plan. Send a convicted drug dealer undercover into a dangerous prison to befriend an alleged serial killer.

UNIDENTIFIED MALE: I'm not a serial killer hunter. So I said, how am I going to do this?

BALDWIN: At stake, answers.

UNIDENTIFIED MALE: Wondering where she is, what happened.

BALDWIN: Peace for grieving families.

UNIDENTIFIED FEMALE: You want to find her, you want to bring her home, and you can't.

BALDWIN: And one man's freedom.

UNIDENTIFIED MALE: They don't just turn around and give out candy and say, you're free to go. I went through hell and back.

(END VIDEOTAPE)

BALDWIN: So after fireworks tonight, two great CNN documentaries. Watch them, DVR them. The premiere of "To Catch a Serial Killer" 10 p.m. eastern right after the Atlanta child murders documentary on CNN.

Are you at all thinking of buying a house? One guy has perfect credit and a 20 percent down payment. He got denied. That's apparently happening all over the place these days. Alison Kosik is here to tell me why, next.

(COMMERCIAL BREAK)

BALDWIN: The housing crisis has millions of homes sitting empty. In what has to be one of the best buyers markets in decades? Why aren't people buying? A lot of times they can't get a mortgage even with good credit. Alison Kosik explains.

(BEGIN VIDEOTAPE)

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: For Gary Frisch and his fiancee, the moment they saw this house they knew they wanted it, but for this couple, the buying process became a love/hate relationship. GARY FRISCH, DENIED FOR A MORTGAGE: I was stunned when I got the news.

KOSIK: A week before his closing, he found out his mortgage was denied, even though he put 20 percent down and had a top notch credit score.

KOSIK (on camera): You have an excellent credit score?

FRISCH: Yes, my credit was exceptional, over 800 according to one bureau and in the high 700s according to others.

KOSIK: Frisch started his own business in 2007. Finally last year his business started to pay off and he had a big jump in income. But that extra money coming in didn't meet approval.

FRISCH: The reason I was declined was because there was too big of a disparity between my 2009 and 2010 income.

KOSIK: Five years ago it may not be a problem, but these days it's a red flag.

FRISCH: That person is getting declined right now, and not able to buy a house.

KOSIK: Before the recession, credit was flowing free and easy. But then when the housing market went bust, lenders pulled back, overcompensating and tightening their lending standards. In fact, in today's market, almost a quarter of all mortgage applications are denied.

FRISCH: We were too lenient in the early 2000s, we're too tight right now. We have to be somewhere in the middle.

KOSIK (on camera): Did you think at one point you're going to give um and not go through with it?

FRISCH: Yes, that thought did enter my mind a couple times.

KOSIK (voice-over): Privacy laws dictate we protect the personal information of all individuals so we are unable to comment on a specific case. But this story ends well for Daniel. He found another lender that got him into a loan and the couple into a new home.

FRISCH: The lesson learned is you have to have a thick skin.

KOSIK: And be prepared to work through a difficult process.

(END VIDEOTAPE)

BALDWIN: All right, Alison Kosik, given this tough housing environment you just laid out for me, give me some good news, some tips for prospective homeowners?

KOSIK: First the reality, unless you have a suitcase full of cash, you can pay cash for a home, the reality is, buying a home isn't easy, especially when you compare how it was a few years ago. Expect to hit some bumps here and there.

But the biggest hurdle is looking good on paper. You have to have good credit and shouldn't carry too much debt.

Also, the loan officer you choose, has a big impact on the process, you need to choose somebody who's in your corner and they should know what they're doing, like how to structure a loan application, the right way. Brooke, the best way to find somebody credible, go through a referral from a real estate agent, a friend, family member, you really want to get somebody that knows what they're doing.

BALDWIN: Totally off topic. You're a gal after my own heart. Were you a fan of New Kids on the Block?

KOSIK: Do I have to admit it on TV?

BALDWIN: Yes, of course.

KOSIK: Yes, of course, I was.

BALDWIN: Sit tight. I have something for you. Watch this.

KOSIK: OK.

(BEGIN VIDEO CLIP)

(SINGING)

(APPLAUSE)

(END VIDEO CLIP)

BALDWIN: Oh, my goodness, yes, two of the bestselling boy bands in history gave me a little bit of a private concert, the Back Street Boys and New Kids on the Block. I sat down with them for a revealing and hysterical interview. You'll see it all next on this "Music Monday." Stay with us.

(COMMERCIAL BREAK)

BALDWIN: It is "Music Monday," and you know what that means. I got to be backstage and interview some of my favorite bands. Sometimes they're new, sometimes they're new again, like NKOTBSB. That seems like a few extra letters for you old New Kids fans. They've joined forces with the Back Street Boys and they're making women swoon across the country.

(BEGIN VIDEOTAPE)

BALDWIN: First let me start with, what took you guys so long -- you guys and you guys to come together?

DONNIE WAHLBERG, NEW KIDS ON THE BLOCK: There are people who actually thought it happened too soon, in fact, I'm sure, at least early on. BALDWIN: You?

WAHLBERG: No, we think it happened right when it was supposed to. There are definitely people early on who are scratching their heads over it, until we started to do things together. And then as things started happening, people are like hmm. Now that the tour is up and running it's pretty cool.

BALDWIN: It's worked.

WAHLBERG: It's worked magically.

BALDWIN: It's almost like these two heartthrob boy bands al on one stage together. Do you see it as rivals? Or is it all one big happy boy band group?

DANNY WOOD, NEW KIDS ON THE BLOCK: If it was rivals it wouldn't have really worked. When they came out, we actually had broken up. So we watched them --

WAHLBERG: In '99, yes.

BRIAN LITTRELL, BACKSTREET BOYS: Yes. We watched them on TV. I always loved what they did. If there was a rivalry, it wouldn't have worked at all. We came together.

BALDWIN: Did the New Kids pave the way for you all?

LITTRELL: Absolutely. Most definitely.

BALDWIN: How?

LITTRELL: I mean, knocking shutdown radio doors, you know, getting songs played on the radio.

BALDWIN: What a moment to be standing on stage with these guys.

LITTRELL: I get a chance to introduce Joey McIntyre. This guy is a nut. He's a crazy nut. He reminds me a lot of myself.

WAHLBERG: In the same way, one could say new kids opened the door for them, they were the first successful boy band, blah, blah, blah. Well, radio tired of us really fast and so did MTV, and nobody would play us anymore. So when Backstreet came along, they had to reopen those doors for themselves. It wasn't like everybody was desperate for the next New Kids. Nobody wanted the next New Kids.

BALDWIN: You know, you're a little older than when you were out on stage before. And I'm just curious if, is everything moving the same way. Dancing, were you guys sore the next day?

NICK CARTER, BACKSTREET BOYS: Danny is the epitome of physicality. He's in great shape.

WAHLBERG: He's blushing.

(LAUGHTER)

CARTER: I feel like we -- I feel like we're athletes. I feel like we're kicking butt. I feel like we're giving it our all. We have to run up and down a stage that's the length of basketball courts. We're playing places that they play. I think we're doing a really good job at it, actually.

LITTRELL: I'll tell you this -- you're right and correct in saying that some things, you know, work like they used to and some things don't. We've already had an injury where A.J. was trying to talk to our musical director and fell through the hole in the stage. His body didn't work like it did right off the bat like it used to.

BALDWIN: What one group would you like to see reunite?

WOOD: I don't really know. Yes, maybe the full Backstreet Boys with Kevin. In Sync would be good. I would like to see them back together. That would be a nice one. I would say the Jackson Five before Michael Jackson passed away. That would have been nice to see.

WAHLBERG: New Edition.

BALDWIN: New edition?

WAHLBERG: Yes. I'm secretly working on it behind the scenes. I'm trying to will it to happen. I'm trying to will it to happen, but with all of them, Bobby Brown and all of them, because they really are our inspiration from the same hometown.

CARTER: Journey with the real Steve Perry. Steve, do it. Call Nick.

BALDWIN: Is there any difference in the audience from years ago to now?

LITTRELL: The screech isn't as high.

BALDWIN: Isn't as high pitched, because it's maybe little older ladies out there?

WAHLBERG: It's still loud. Slightly lower register.

BALDWIN: Can you do a little, quick little number, warm up. You've got to get the vocal -

(SINGING)

WAHLBERG: That's Danny's part.

BALDWIN: Come on, Danny.

(SINGING)

CARTER: That's George's part.

(END VIDEOTAPE) BALDWIN: There you go, your "Music Monday." We don't discriminate, New Kids and Backstreet Boys. Some of the audio not perfect. We're going to fix that for you. You can go to my blog, CNN/Brooke, to see the whole thing by tonight.

And a disturbing FOX News tweet cross the web last night. It falsely announced that President Obama had been killed and now the secret service is involved. That is next.

(COMMERCIAL BREAK)

BALDWIN: It's another day and we have another hacking controversy. It involves twitter and FOX News. Joe Johns is here. Joe, how did it happen? Do we know?

JOE JOHNS, CNN CORRESPONDENT: Oh, gosh. Brooke, everybody from, what, Apple to Sony to FOX News has been hacked. This one in particular, though, is more than just somebody's password being violated. It's pretty serious stuff.

FOX News says it's FOX News Politics twitter feed was hacked with a series of tweets falsely claiming that the president is dead, that he was assassinated and asking for support for the Obama family and for Vice President Biden. It started around 11:00 Pacific time.

FOX News put a statement saying hackers sent out several malicious and false tweets claiming that President Obama had been assassinated. It said those reports are incorrect, of course, and the president is spending the July 4 holiday with his family. The hacking it said is being investigated by FOXNews.com and regrets any distress the false tweets may have created.

FOX News reported this to the Secret Service. The Secret Service confirmed to us it is investigating the situation, quote, "taking appropriate follow-up action." And FOX also says it requested a detailed investigation from twitter about how this happened. So we checked in with twitter.

BALDWIN: What did they say?

JOHNS: It's not their policy to comment on specific accounts for privacy reasons. In general, though, they said it's important to protect your account credentials and have a strong password. There you go.

BALDWIN: On a lighter note, I'm a dog lover. Talk to me about dog loves America.

JOHNS: This is a great opportunity, to show some patriotic dog pictures on TV. They're posters, and they're fantastic. They're connected to a campaign to provide specially trained service dogs to U.S. military personnel returning from war who were suffering from PTS. The guy behind that is a philanthropist named Charlie Annenberg Weingarten. He has a Facebook page.

BALDWIN: God bless America. Joe Johns, thank you very much. "THE SITUATION ROOM" starts in an hour, 5:00 Eastern.