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Rupert Murdoch's Embattled CEO Resigns; President Obama, General Petraeus on Bin Laden Hit List; Big Challenges for Atlanta Mayor; : U.S. Women In World Cup Final; Stocks Attempt Gains; Job Crisis For Young People

Aired July 15, 2011 - 12:00   ET

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

SUZANNE MALVEAUX, CNN ANCHOR: Top of the hour. I'm Suzanne Malveaux.

Want to get you up to speed.

For the second time this week, President Obama took his case for a comprehensive long-term budget fix to the American people, but a deal with Republicans remains out of reach after a week of daily negotiations. The immediate concern is the debt ceiling.

The government's ability to borrow money runs out August 2nd, unless Congress raise the limit. That means Washington will not be able to pay its bills.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: All the congressional leaders have reiterated the desire to make sure that the United States does not default on our obligations, and that the full faith and credit of the United States is preserved. That is a good thing. I think we should not even be this close to a deadline.

(END VIDEO CLIP)

MALVEAUX: Senate leaders from both parties, they're working on a backup plan to increase the debt ceiling without any corresponding spending cuts or tax increases. And it's really unclear if such a plan could even pass in the House, where conservatives are insisting on deep cuts in spending.

Well, Rebekah Brooks quit her corporate job at Rupert Murdoch's News Corp. today. At one time she was the editor of the company's London tabloid "News of the World." Brooks has denied she knew reporters were hacking phones of celebrities, politicians, even crime victims.

In a statement today, Brooks says, "I feel a deep sense of responsibility for the people we have hurt. I want to reiterate how sorry I am for what we know now to have taken place."

Rebekah Brooks, along with News Corp. chairman Rupert Murdoch and his son James, all expected to testify before Britain's parliament. That's going to happen next week. Well, the Pentagon says a rogue nation stole thousands of sensitive digital files last March. Officials say that a foreign government got into defense contractors' computers. Deputy Defense Secretary William Lynn did not name the country.

(BEGIN VIDEO CLIP)

WILLIAM LYNN, DEPUTY DEFENSE SECRETARY: Indeed, in a single intrusion this past March, 24,000 files were taken.

It was done, we think, by a foreign intelligence service. In other words, a nation state was behind it.

(END VIDEO CLIP)

MALVEAUX: Lynn also put out a reminder of a new Pentagon policy. A cyberattack on the Defense Department that is serious enough to be designated as an act of war may be met with a military response.

Well, a bull's eye on suspected al Qaeda militants in Yemen today. Two Yemeni security sources tell CNN a U.S. drone hit a police station the militants had taken over. Sources say at least 50 people were killed. Witnesses say that civilians make up more than half of the dead.

Well, a source tells CNN that both President Obama and Afghan War commander General David Petraeus were listed as specific al Qaeda targets. Documents show that Osama bin Laden wanted to attack their planes when they were in the region. The plot was uncovered in materials that were seized by U.S. Navy SEALs at Bin Laden's home in Pakistan.

Well, Casey Anthony leaves a Florida jail. That's going to happen on Sunday. But she may be back in the legal spotlight on Tuesday for a deposition in a civil lawsuit. A woman named Zenaida Gonzalez is suing Anthony for defamation.

Anthony initially claimed that that was the name of the nanny who had kidnapped her daughter Caylee in 2008. Well, Gonzalez says that Anthony's lie has ruined her reputation and her ability to earn a living.

Good versus evil. The final battle. "Harry Potter and the Deathly Hallows Part 2," it opened at midnight. The movie sold millions of dollars worth of advanced tickets. "Harry Potter" fans are thrilled that the movie is here, but kind of deflated, too. It's the last film in the franchise.

Back to the scandal rocking Rupert Murdoch and his media corporation. One of Murdoch's top executives, Rebekah Brooks, was forced to resign today. Plus, the scandal is now starting to blow up here in the United States.

The Justice Department is now investigating claims that one of Murdoch's tabloids tried to hack into the phones of 9/11 victims and their families. Our CNN's Susan Candiotti, she is following all the angles of the story. She's in New York.

Susan, first of all, let's talk about this resignation here. Murdoch's protege, Rebekah Brooks, she has issued an apology. Did she know -- do we know if she knew what was going on?

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: All we know is what she's put on the record. She has denied knowing in advance that any of this was going on, any of the hacking scandal. However, she does make the comment that now she is very sorry for what happened and seems to be acknowledging in a way this, in these comments: "I want to reiterate how sorry I am for what we now know to have taken place."

So I guess the jury is still out as to whether anyone can prove whether she knew anything ahead of time. She did say that now that she has resigned, Ms. Brooks intends to, she said, defend herself against claims that she knew something prematurely, before all this was happening.

MALVEAUX: And Susan, explain to us why the FBI, the Justice Department is now involved in this.

CANDIOTTI: Well, it was sparked, was prompted -- the seed for this was an article that was in a British newspaper in which it was claimed that a retired New York cop working as a private eye was contacted by the "News of the World" to look into hacking phone records, and even voicemails, of 9/11 victims and their families. So that is what prompted a big hoopla in the United States, understandably.

A lot of pressure from congressional leaders, a lot of senators, as well as 9/11 families, who asked the U.S. attorney general to start an investigation. He is now -- the FBI says the investigation is under way and it has been for the last 24 hours. So this is day two. A lot more to be done with this.

I spoke with Jim Riches, who lost his son, a firefighter, on 9/11, and this is what he thinks about the investigation.

(BEGIN VIDEO CLIP)

JIM RICHES, LOST SON IN 9/11 ATTACK: I think it was totally, totally ghoulish, people looking to make money off 9/11, off dead people. And I think it's horrible. And I think if they did do it, let's see the results of the investigation. Everyone is innocent until proven guilty, but let's get the facts, and then if we have it, I would hope that they would act and hold people accountable so this never happens again.

(END VIDEO CLIP)

CANDIOTTI: As to what happens next with News Corporation, we'll have to see, of course, in regard to this investigation. However, now Rupert Murdoch is taking out a full-page ad in papers in the U.K. tomorrow. I'm going to show you what it looks like. It's topped off with those big letters, "We are sorry," and the first couple of sentences read, "The News of the World was in the business of holding others to account. It failed when it came to itself. We are sorry for the serious wrongdoing that occurred."

A big question now among many others, of course, Suzanne, where will the FBI's investigation will lead and high how up?

MALVEAUX: Sure. And real quick here, Susan, because we wanted to know whether or not the FBI is investigating the American companies that fall under the News Corp. umbrella: "The New York Post," "Wall Street Journal," Fox News. Are they a part of this probe? Do we know that yet?

CANDIOTTI: We don't know it yet. They're not prepared to say that. All that sources are telling us at this point is, look, we are starting with that one newspaper, and let's see where the investigation takes us from there.

MALVEAUX: All right. Susan Candiotti, thank you so much.

(NEWSBREAK)

(COMMERCIAL BREAK)

MALVEAUX: Well, the drawdown begins. About 650 U.S. soldiers have been flown home from Afghanistan's northeastern province of Parwan. The military says they're the first soldiers whose redeployment will not be replaced by a new rotation of U.S. forces.

Another 600 troops are in the process of leaving. According to President Obama's plan, 10,000 American troops will be out of Afghanistan by the end of this year. And the full drawdown is expected to take place by the end of 2014.

Well, there are now new revelations from documents seized in that deadly raid on Osama bin Laden. Now, they show that the terrorist leader had a hit list that included President Obama and General David Petraeus, who's the commander of NATO forces in Afghanistan. And a source familiar with this intelligence says that Bin Laden wanted to destroy the aircraft carrying President Obama and Petraeus when they visited the region.

Well, CNN national security contributor Fran Townsend, she's joining us via Skype from New York. She is a member of both the CIA and Department of Homeland Security external advisory committees.

Fran, that's a mouthful there. But you're very experienced here. And your experienced in investigating al Qaeda as well.

Is this type of attack, this strategy, a surprise to you when you hear they were going to go after the president, as well as General Petraeus?

FRAN TOWNSEND, CNN NATIONAL SECURITY CONTRIBUTOR: You know, I think it sounds shocking probably for most Americans, but let's remember, Suzanne, when Vice President Cheney visited our armed forces in Afghanistan, the base was attacked because he was there. And so we've always known that our military leaders, military leaders like General Petraeus, and our political leaders like the president and the vice president are, of course, subjects of being targeted by al Qaeda and terrorists groups. And also, as we know, by all sorts of extremists groups.

That said, the security around them is very tight. Those threats are taken very seriously. And so, I will tell you, it doesn't really surprise me that they are on the list. And we always behave in the counterterrorism community assuming they are on the list, assuming that terrorists want to target them. And we put their security packages around them based on those threats.

MALVEAUX: And Fran, from what we are hearing, the information we're getting, is that this was in a discussion phase, that this was not in kind of an active phase. Is that what your understanding is as well?

TOWNSEND: It is. I mean, when I'm talking to people in the counterterrorism community, what you hear is, is they went through the intelligence from the Bin Laden raid. There was no imminent, actionable intelligence.

There were things thrown around, ideas thrown around and offered about what kinds of attacks, what sort of things they should do. For example, we saw it right after as they were initially going through it, threat information coming out from the Department of Homeland Security. Most of those were merely kind of notional. They didn't fined any specific plans, is what I'm hearing.

MALVEAUX: OK. And do they know if there are any other plans or plots that people are discussing or information about other plans targeting the 10th anniversary of 9/11 coming up?

TOWNSEND: You know, there was some suggestion that the notion of trying to have an anniversary attack for the 10th anniversary for 9/11 was among those things found in the documents after the Bin Laden raid. You know, it's interesting, Suzanne. Bin Laden -- al Qaeda has not ever shown themselves to be big about anniversaries.

On the other hand, 9/11 they viewed as a strategic success for them. It is likely to be a large public gathering with lots of people, and they like those. And so, in some sense, while they don't typically do anniversary attacks, you can see how this would have been a particularly attractive target for them.

MALVEAUX: And Fran, final question. In light of what we have heard recently from the defense secretary, Leon Panetta, saying that al Qaeda has been significantly downgraded, what do you make of their capability now going forward? Can they wage any kind of major attack against us in the upcoming anniversary?

TOWNSEND: Look, I think that al Qaeda would have liked to have had a huge attack, but not just on the anniversary. If they could have done it sooner, they would have done it. There's been -- I think Panetta is quite right that the U.S. has hugely degraded al Qaeda's capability. And when he talks about we're at a moment where we could have a strategic success, what you want to do right now is take out the rest of the leadership.

That said, what you've got are groups like al Qaeda in the Arabian Peninsula who have bomb-making capability, clear intent, and have attempted attacks on the United States like the cargo on the planes and the Christmas Day underwear bomber. And so they don't seem to have the capability of super large-scale 9/11-type attacks, but it doesn't mean they don't remain a serious threat and intent on trying to attack us here on the homeland.

MALVEAUX: All right. Fran Townsend.

Thank you very much, Fran.

Well, running a big city during lean times, it's today's "What Matters" segment. I talk with Atlanta Mayor Kasim Reed about bottom- line street crime, even helping overweight kids.

(COMMERCIAL BREAK) .

MALVEAUX: Time to go "X Country" for stories CNN affiliates are covering.

First stop, Texas. At least eight people were hurt Thursday when hundreds rushed to line up for low-income housing coupons in Dallas. Some had been waiting all night, so there was a big scramble to get to the door. Paramedics treated the injured for cuts and scrapes.

Well, there were some pretty scary moments last night at Boston's Logan Airport. Two planes collided on the runway right before takeoff. A Delta 767's left wing crushed the tail section of a smaller commuter jet. Both planes were evacuated.

And in Washington State, paramedics taking a man to the hospital for cancer treatment asked him if they could do anything else. So he jokingly said yes, they could take him and his wife to their son's baseball game.

(BEGIN VIDEO CLIP)

BLANCA ORR, JIM ORR'S WIFE: I just cried because I knew how much it would mean to him. So it touched my heart.

(END VIDEO CLIP)

MALVEAUX: The doctors were called, exceptions made, and Jim and Blanca Orr were able to watch their son play. He even hit a homerun.

Well, a cheating scandal is rocking the Atlanta school system. A yearlong investigation reveals that teachers and principals padded standardized test scores. It's an administrative nightmare.

It's just one of the tough issues Atlanta Mayor Kasim Reed is facing now.

Well, I sat down with the mayor to talk about crime rates, the city's budget, and how he plans to tackle other big issues. It's this week's "What Matters" segment.

(BEGIN VIDEOTAPE)

MAYOR KASIM REED (D), ATLANTA: I'm not sure how that happened.

MALVEAUX (voice-over): Mayor Kasim Reed is leading the charge at Atlanta's historic Peachtree 10K, saddled by a knee injury, but trying to set a good example.

REED: Obesity is more than an Atlanta problem, it's a southern problem. And so we've got a lot to do in terms of changing our habits, changing our diet, and exercising more. So, as the mayor of the city, I can start with myself.

MALVEAUX: He's talking about taking on the alarming obesity epidemic plaguing more than half of Atlanta's adult population. But the mayor is also talking about setting the pace and creating a path to fiscal responsibility for a city of more than 500,000 residents.

Mayor Reed goes from a city close to $48 million in the red to an expected $2 million surplus today. He's grabbing the national spotlight with a deal he just cut with the city council and union members to overhaul the city's underfunded pension plan. Reed will save more than $25 million this year alone by making current employees contribute more to their pensions. New employees will have to enroll in 401(k)s, and the retirement age will go up by two years.

It was a gamble that's paid off for Reed for now, but it meant hurting some supporters.

REED: It's really hard, because there's no question that I would not be mayor but for the support of my friends and labor.

MALVEAUX: Despite a projected balanced budget, the city of Atlanta is hurting much like the rest of the nation's urban areas. High unemployment and homelessness are big problems. But surprisingly, tourism and conventions provide the many jobs for Atlanta residents.

REED: We're building a Hartsfield-Jackson International terminal right now. The city of Atlanta is financing it. It's a $1.6 billion project that provides $30 million to $50 million in direct investment right now.

MALVEAUX: And he is also taking on Atlanta's criminals. He says despite the 9 percent drop in violent crime in the past two years, he's not letting up.

REED: So that's why during real tough economic times, we've hired more than 250 police and stood up the largest police force in the history. MALVEAUX: Another draw to Atlanta is its gay population. Atlanta was named the "Nation's Gayest City" last year by "Advocate" magazine, a national gay and lesbian publication. But Reed says unlike in New York, it's not a city where gays will get married anytime soon.

REED: I support civil unions. I have not evolved to the position in believing in marriage equality. But I did vote against the constitutional amendment to ban gay marriage.

(END VIDEOTAPE)

MALVEAUX: My conversation with Mayor Kasim Reed, tackling some of the big issues here in Atlanta.

Well, five days of meetings, still no deal. We're going to take a closer look at the political back-and-forth in the debate over the debt ceiling.

(COMMERCIAL BREAK)

MALVEAUX: Here's a rundown of some of the stories we are working on.

Next, the politics behind the debt ceiling talks. A political strategist tells us what's really going on.

Then, California prepares for "Carmageddon." I'm going to talk live to a traffic reporter with a bird's eye view.

And later, team USA gets psyched to win the women's World Cup for the most time in more than a decade. I'm going to talk to a World Cup champion about what it takes to dominate.

Well, Republican presidential hopefuls are jumping into the debate over raising the debt ceiling. The GOP candidates and contenders are trying to turn up the heat on President Obama and the Democrats.

That story from CNN's Jim Acosta.

(BEGIN VIDEOTAPE)

JIM ACOSTA, CNN CORRESPONDENT (voice-over): Accused by Democrats and a few of his Republican rivals of taking a low profile on debt talks in Washington, GOP frontrunner Mitt Romney has now hit the ceiling.

MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: The president to agree to cut federal spending, to cap federal spending, and to put in place a balanced budget amendment. And that is the answer for the debt limit. It's the answer for the nation. That's the line in the sand.

ACOSTA: Nearly all of the declared and potential Republican candidates are ratcheting up the rhetoric on the issue, with Sarah Palin returning to one of her controversial catch phrases. SARAH PALIN, FORMER GOVERNOR OF ALASKA: We cannot default, but we have to -- we cannot afford to retreat right now. Now is not the time to retreat. It's time to reload, and we reload with reality.

ACOSTA: Michele Bachmann accused the president and even the treasury secretary of passing on what she called a misnomer.

REP. MICHELE BACHMANN (R-MN), PRESIDENTIAL CANDIDATE: That if Congress fails to raise the debt ceiling by $2.5 trillion, that somehow the United States will go into default and we will use the full faith and credit of the United States. That is simply not true.

ACOSTA: A few hours after Bachmann's comments, the powerful Moody's investors' service announced it was reviewing the AAA bond rating for the U.S. For voters, it's a question of who do you trust, Bachmann or Ben Bernanke, the chairman of the Federal Reserve?

BEN BERNANKE, CHAIRMAN, FEDERAL RESERVE: I think it would be calamitous outcome.

UNIDENTIFIED MALE: In the '80s, we did it to Reagan.

ACOSTA: Ron Paul released a new movie trailer-like TV ad warning past budget compromises with Democrats have only led to higher taxes.

UNIDENTIFIED MALE: The '90s brought more compromises, more broken promises, and more new taxes.

ACOSTA: The ad doesn't mention that during the '90s, President Bill Clinton balanced the budget after raising taxes. A new Quinnipiac poll finds just 25 percent of Americans want only spending cuts as part of a debt deal. Sixty-seven percent would increase taxes on the wealthy and corporations.

That won't fly with the current GOP candidates, who have all signed pledges not to raise taxes, except for Jon Huntsman. Still, any Republican accused of playing politics can just point to the president, who voted against hiking the debt ceiling in 2006.

OBAMA: Well, that was just an example of a new senator making what is a political vote, as opposed to doing what was important for the country.

ACOSTA (on camera): Besides Bachmann, Paul and long shot Thad McCotter, the rest of the GOP candidates don't have to cast a vote on the debt ceiling. That's a luxury a lot of politicians in this city wish they had right now.

Jim Acosta, CNN, Washington.

(END VIDEOTAPE)

MALVEAUX: Well, five meetings in five days. Still no agreement on raising the debt ceiling and trimming the deficit. President Obama is holding out hope for a big deal, a grand bargain. But Republicans are standing firm on their opposition of any tax increases. Joining us to talk about the standoff is CNN senior political analyst, David Gergen. David, great to see you. You have said, and you have written about, all week, it's time for a truce, time for a cease-fire. Is that likely to happen in this political climate?

DAVID GERGEN, CNN SENIOR POLITICAL ANALYST: We still have some tough road to go here, Suzanne. We're going to select the perils of (INAUDIBLE), and it will continue right through next week, I am afraid.

Look, I think there is an effort the in the Senate to come up with a bill, which would in effect bring a truce and would satisfy the president, would satisfy Mitch McConnell, would satisfy a lot of people in the Senate and might satisfy John Boehner. Whether it would satisfy House Republicans, big question.

MALVEAUX: Still a big question. The president, we've seen him - really unprecedented, two press conferences in one week, Monday and Friday, and he just had one last week. He's trying to make his case to the American people. This is working? Is this actually helping his cause?

GERGEN: I think he has helped himself modestly. He himself has pointed to the polls and his press conference showed today support is building for the kind of balanced approach that he has talked about, which includes tax increases.

But it hasn't solved the problem in Washington. We have a real showdown coming between the more conservative elements of the Republican party in the House of Representatives versus more moderate Republicans and Democrats in the White House. And that's all going to play out next week. We don't know how it's going to come out. It's still possible to go into default. I certainly hope not.

MALVEAUX: What would break that impasse, do you think? Because you are essentially looking at a power play here, it seems, within the Republican party to determine who is the alpha dog?

GERGEN: Here is what I think will happen. The House is going to present a much tougher plan. This is what was called the cut, cap and balance that Mitt Romney was just supporting. That's what they will vote on, and that's a very tough plan to really shrink spending that will probably pass the House - at least you got a majority vote.

The Senate will then have an alternative plan which is much closer to what the president would accept, which would be a much more modest cut but would extend the debt ceiling through -- past the elections. The House will vote on it, the Senate will vote on it. Then the question becomes - the Senate will vote down what the House is doing.

The question is, is the House then prepared to accept this more moderate version. If they turn it down, we've got one hell of a problem on our hands. We could easily go into default. If they accept it, we'll probably - you know -- the bullet will miss us. MALVEAUX: All right. And David, real quick here, you have been involved and watched many administrations, Republican and Democrat. Have you seen things -- this gridlock on the Hill before?

GERGEN: It's hard to remember. There are times when we have gone through traumatic debates on the Hill. In this case, I must say, it's putting a picture in front of the world is that discouraging, and I think it will have real consequences on interest rates and the willingness of the rest of the world to buy our debt.

MALVEAUX: All right. David Gergen, thank you very much.

GERGEN: Thank you.

MALVEAUX: Well, they are shutting down a big part of a major freeway in Los Angeles. That's happening this weekend. So the question, can Californians survive without their cars?

(COMMERCIAL BREAK)

MALVEAUX: "Carmageddon," just hours away in Los Angeles. A 10- mile stretch of Interstate 405 will be closed for 53 hours this weekend for a bridge demolition project. So, keep in mind, I-405, one of the busiest highways in the United States. Starting early this evening, highway officers are going to block access to on and off ramps, close freeway lanes one by one until they reach a full shutdown by midnight.

So, getting stuck in Carmageddon could be a nightmare for drivers, but not for late-night comedians. Take a listen.

(BEGIN VIDEO CLIP)

JAY LENO, HOST, "THE TONIGHT SHOW": Some of the local news stations here are trying to help commuters with alternate routes. Well, here, take a look. Here's the story.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: If you want to avoid the 405, try scenic route like Pacific Coast Highway. PCH will take you on a five-mile drive to the Topanga Canyon. Once you hit the canyon, hike up the Santa Monica Mountains. Simply cross the 300-foot canyon and then repel down. Now take the L.A. River, and this will take you into the San Fernando valley that would take you to the 27 and back on the 101 freeway. It's as simple as that.

(END VIDEO CLIP)

(APPPLAUSE)

LENO: Very simple. Very simple!

(END VIDEO CLIP)

MALVEAUX: All right. We have to be serious about this, too. Because for weeks, public safety officials have been telling everybody three things. Plan ahead, avoid the area or stay home.

Joining me is our meteorologist, Chad Meyers, who has been following this. And from San Gabrielle, California, Jorge Jarrin, KABC talk radio. Listeners know him as Captain Jorge. He has been covering traffic for 25 years. Thank you for joining us as well, Jorge.

So, what do you think? Have people been listening to all of this. Is this shutdown really going to be that big of a deal?

JORGE JARRIN, KABC TALK RADIO TRAFFIC REPORTER: Well, Suzanne, it's not exactly another Y2K, if you will. But we have been listening to this for the last six weeks with a huge publicity campaign by local officials telling people avoid the freeway. Stay off the main streets. Just stay home, or leave town if you can.

But you know it's something that is part of living in southern California with all the freeways. That (INAUDIBLE) pass carries over 750,000 vehicles on a regular summer weekend. So, this complete culture (ph) has certain gotten everyone's attention.

MALVEAUX: Well, what are Californians doing? Are they staying home? Are there big activities happening over the weekend?

JARRIN: Well, there are activities unfortunately that have been planned way in advance that you can't change. For example, over 100,000 people are expected at the Los Angeles Memorial Coliseum for a big game between Real Madrid soccer game there between Real Madrid and LA Galaxy. And, you know, there are other things that people have planned during the summer -- weddings and parties and things and they have to either plan for that or work around it.

Now, of course, all those side streets, all the streets within the L.A. basin, San Fernando Valley will be impacted because of the main stretch through the Santa Monica Mountains that connects the San Fernando Valley to the L.A. Basin. That's going to be shut down for 53 hours.

So, where does all that traffic go? Obviously it's going to go into side streets. People are being encouraged to stay home. And you know, some businesses have really taken advantage of this, and have come up with some very special offers.

For example, you may have heard about JetBlue offering a $4 commuter fair to the Burbank Airport in San Fernando Valley to the Long Beach Airport in the L.A. Basin, and that's completely sold out --

CHAD MYERS, AMS METEOROLOGIST: Hey, Captain -- hi, this is Chad Myers. I have heard about the cheap tattoos. I've heard about cheap car washes. What's the craziest thing you've heard about? We all heard about the JetBlue, but there must be some crazy stuff out there.

JARRIN: Sure. From the traditional to the nontraditional. There's a Moroccan health spa in Beverly Hills that is offering a full Moroccan spa treatment for just $40.05, named after the 405. The very famous Trader Vick's (ph) restaurant at the Beverly Hilton Hotel is offering a Carmaggedon Mai Tai for just $4.05.

MYERS: Oh, that's good. Yes, drink that and then go drive on the road. Yes, no.

JARRIN: -- and if you're out in Malibu (ph), go to the world- famous Gladstone's for fish. They've got a special Carmaggedon appetizer menu for $4.05. They have grasped this, taken advantage of it, and people are having fun with it, but then again, people are going to keep an eye on that (INAUDIBLE) pass, try to avoid and stay off the freeways and the roadways altogether.

MALVEAUX: All right. Thanks so much. Thanks, Jorge.

MYERS: We heard some of the hospitals are keeping their emergency staff in hotels close to the hospital, because they don't want them -- because if there is a big emergency -

MALVEUAUX: Sure, that's a great idea -

MYERS: -- they don't want thOSE doctors to be stuck and take two or three hours to get there.

MALVEAUX: That's a good idea. I wonder if people will take them up on those offers. The tattoos, the pet shops. That's, like, crazy.

MYERS: We had the same thing here. In 1996, we had the Olympics in Atlanta. And they said don't go downtown, there's going to be so much traffic. The place was deserted. There was no traffic at all because no one was here. They all left.

MALVEUAX: Maybe that'll work out that way for those guys over the weekend.

MYERS: Maybe.

MALVEAUX: Thanks, Chad.

MYERS: Sure.

MALVEAUX: Stay with CNN this afternoon as our coverage of Carmaggedon continues with Los Angeles mayor Antonio Villaraigosa. That is 2:40 p.m. Eastern on CNN.

Well, the girls are doing it. We will talk to women's soccer icon Brandy Chastain about the upcoming U.S. team's upcoming women's world championship soccer match.

But first some free money advice from the CNN Help Desk.

(BEGIN VIDEO CLIP)

POPPY HARLOW, CNNMONEY.COM: And now for the Help Desk, where we get answers to your financial questions. An joining me this hour, we have Jack Otter, the executive editor at CBSmoneywatch.com, And Ryan Mack, the president of Optimum Capital Management. Thanks for being here, guys. First question for you, Ryan. This comes from mark in Downington, Pennsylvania. And Mark writes, "Does it make sense for me to consolidate my retirement assets with one of the larger fund companies, and what are the downsides?"

RYAN MACK, PRESIDENT, OPTIMUM CAPITAL MANAGEMENT: Whenever I hear consolidate in one of the larger fund companies, I always get a lot of red flags. The beautiful part about mutual funds is that there's an enormous amount of diversification. You can diversify across different stocks, you can diversify across domestic and foreign investments. You can diversify across different asset managers who have different styles and strategies.

So putting all your eggs in one basket is never the right way to go about doing it. Talk to a financial adviser that will give you the plethora of investments, selections and securities you can have. And just choosing and putting in a good strategy that's good for you. 90 percent of your portfolio return is attributed to asset allocation according to the Brinson study back in the '90s. So, we have to make sure we are diversifying and properly allocating.

HARLOW: Absoluely. I think people think it's easier to just put it all in one place, and it's your money and savings and retirement. Be a little more careful.

MACK: Bernie Madoff proved us wrong with that strategy.

JACK OTTER, CBSMONEYWATCH.COM: Yes, keep your expenses down. Take index funds.

HARLOW: Right. Right. Well, Jack, we have a question for you. It comes from Sarah in Phoenix. Sarah writes, "My boyfriend and I are considering getting married. His house is in foreclosure and mine is paid off. Can his bank garnish the equity I have in my house, CD or bank accounts if we're married."

OTTER: Is she sure she wants to marry this guy? That's my first question.

HARLOW: That's the important one.

OTTER: But seriously. No. The good news is no, unless for some reason he jointly signed on any of these. As long as they are her assets, they could be married 100 years. If his signature is not on the paper, she is safe.

But I would advise, clear this up, get this thing out of the way. Deal with the foreclosure. His credit will be awful for seven years, but you they can live on her credit for the next seven years.

HARLOW: Yes, as long as they stay married, right?

OTTER: Yes, exactly.

HARLOW: All right, thanks guys.

If you have a question you want answered, just send an e-mail anytime to CNNhelpdesk@CNN.com.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

MALVEAUX: The girls of summer, the women of U.S. soccer, putting their sport back on the map with a win on Sunday. They'll come home World Cup champs. Star forward Abby Wambach told me yesterday what they have what it takes.

(BEGIN VIDEO CLIP)

ABBY WAMBACH, U.S. WOMEN'S SOCCER (voice-over): This team is special and this team, I can't put my finger on what makes this team so special, but the fact is, is we just don't give up. We're not quitters. And we won't give up for the entire 90 minutes that we play on Sunday. And I think it's going to be enough. I think that we can do this. I know that the players on my team, the coaches, the staff, we've all put so much time and effort into training and preparing for this, we're not going to let it go lightly. It's going to be a great match. I can't wait to start it. And hopefully to see that we're champs at the end.

(END VIDEO CLIP)

MALVEAUX: And this team is often compared to the 1999 World Cup winners lead by the legendary Mia Hamm. Want to talk to the woman who clinched that victory, World Cup champion Brandi Chastain. She joins us by phone from Frankfurt, Germany.

And, Brandi, thanks for being here with us. Obviously there's been a lot of excitement, a lot of comparisons between your squad, which is essentially the gold standard in U.S. soccer, and now this new team that's kind of emerging from the shadows. Do you think they've got what it takes?

BRANDI CHASTAIN (via telephone): I think they absolutely have what it takes. I think Abby hit a portion of what makes this team special, is that they have this will and determination that under any circumstances they'll find a way to win. And, you know, all of these teams came in to the World Cup with the physical attributes that would help them win a World Cup, but it's the psychological portion of sports that put good teams -- or that good teams but great teams have it even to a higher level.

MALVEAUX: Sure.

CHASTAIN: So I think this team has a lot of the same characteristics as our team did in 1999, and I think they're poised at this point, after kind of going through some rough patches leading up to finally finish it off and take it home for the U.S.

MALVEAUX: And, Brandi, everybody loved that moment, that iconic moment in victory euphoria. You took off your shirt there and you slid across the field. What is that like? What are these women going through now? The pressure, the excitement, the anticipation of what's going to happen this weekend?

CHASTAIN: Well, you know, you named quite a few things that they'll be experiencing over the next few days. There's emotional highs and lows that go on with playing sports and playing sports at the highest level. Especially there's pressure. And it's not external pressure, it's the pressure that they put on one another to be good and to be great every day in training and then in the game. And they'll have to be great on Sunday to beat Japan, because Japan right now is playing not only for the 21 players on the roster and their staff, but literally for a country that's been devastated and is grieving desperately over the loss of so many people in the earthquake and tsunami.

MALVEAUX: Sure.

CHASTAIN: So they have -- they have an emotional edge that the USA is going to have to match in this game come Sunday.

MALVEAUX: All right, Brandi, thank you so much. Thanks for joining us. We'll all be watching and rooting for Team USA. Appreciate it.

CHASTAIN: Excellent. Thank you so much.

MALVEAUX: All right. Take care.

President Obama talks about reaching an agreement on the debt ceiling. We're going to check in on how the markets are reacting.

(COMMERCIAL BREAK)

MALVEAUX: Well, stocks are trying to maintain their gains right now. Our Alison Kosik, she is live at the New York Stock Exchange.

Alison, the market has been trading higher, right, despite the uncertainty of the debt ceiling talks. Why?

ALISON KOSIK, CNN CORRESPONDENT: You said it, Suzanne, yes, we've been watching stocks bounce in and out of the plus column. It's from solid earnings from Google and Citigroup. They've helped to keep those gains going today.

The debt ceiling you mentioned. Sure, it really remains a nonissue here at the stock exchange. At least so far. Traders really believe an eleventh hour agreement will be reached. The stalemate sure is serious, but it is also viewed more as a political crisis. Not really a financial one.

So, yes, the debt ceiling is one of the many issues facing the country right now. The jobs recovery is another. And young people, they've been really hard hit. So after the break, I'm going to have some tips on how young people can get to work. Stay with us.

(COMMERCIAL BREAK)

MALVEAUX: Talking a lot about the debt ceiling. Now I want to focus on the job crisis. Young people are struggling to find jobs more than any other group. And we're going to tell you about some young entrepreneurs who are working to fix this in a minute.

But I want to go back to Alison Kosik at the New York Stock Exchange first.

Alison, give us a sense of how bad this crisis is for young folks and what do they need to do to find a job?

KOSIK: Yes, all you have to do is look at the unemployment rate for young people. I'm talking about people age 18 to 24. It's sitting above 17 percent, Suzanne. That's almost double the 9 percent overall rate. But, you know, there are some consistent tips that we found that could help young people, you know, to get to work.

So, for one, the advice is, get an internship. You know, it may not pay you much or at all at first, but one study finds that a good number of interns actually turn into full-time employees. Secondly, be flexible. You know, as tempting as it is, don't rule out working on weekends or nights. And use your connections. You know, don't be afraid to ask people at your favorite store, your friend's dad, anyone you know who may be hiring or may know somebody else who's hiring.

And, also, don't forget the power of the Internet. You know, there are tons of websites out there for job seekers. Here are some of them, collegegrad.com, simplyhired.com, experience.com. That's just a few. There's another great one out there, Suzanne, called coolworks.com. It really caught my attention. It helps you find a seasonal job in some very cool places like Yellowstone National Park, or even guiding Alaskan raft adventures. How would you like to do that, Suzanne? We could get a job there together.

MALVEAUX: That's a pretty -- yes, that's pretty cool. Take a break from this for a little bit. That will be good.

KOSIK: Yes, you got it.

MALVEAUX: And, you know what, Alison, there's some young entrepreneurs, they're taking the job crisis into their own hands. They're actually creating their own companies to hire people their own age. They met this week in Washington to launch what they're calling a Buy Young initiative.

(BEGIN VIDEO CLIP)

MATTHEW SEGAL, FOUNDER, OUR TIME & BUY YOUNG: Today Our Time is thrilled to announce the launch of our Buy Young initiative, which is a targeted consumer movement to support companies and small businesses founded by Americans under 30. Fundamentally, though, Buy Young is about voting with your wallet or investing in the causes you believe in.

JOHN GOSCHA, FOUNDER & CEO, IDEAPAINT: What a lot of people don't realize is the Fortune 500 companies aren't the only ones creating jobs. It's guys like myself and all the other entrepreneurs here today. Collectively we've created 7,000 jobs in the last year. And it's businesses, the small businesses, that are creating jobs.

JENNIFER FLEIS, COFOUNDER & CEO, RENT THE RUNWAY: All you really need is a can-do get it done attitude and you can make things happen.

MEREDITH PERRY, FOUNDER & CEO, UBEAM: This was one of the most amazing events that I have been to, especially put together by young entrepreneurs themselves. You know, we had everyone from the former CEO of McDonald's to John McCain.

ED RENSI, FORMER PRES. & CEO, MCDONALD'S: I got involved in Our Time board for one fundamental reason, you young people are the greatest asset we have in this country to preserve our culture and the great founding principles this country was established on. You will either be victims of the future or you will be the owners of the future. I choose to help mentor you in every way I can so that you will be the owners of the future.

SEN. JOHN MCCAIN (R), ARIZONA: I'm going to be fine. I'm going to be fine. I'm going to pass on to my dotage (ph) and we're doing real well. But my kids and my grandkids, I am very worried about.

JARRETT MORENO, COFOUNDER, OUR TIME & BUY YOUNG: Part of the reason we launched Buy Young is to send a message that young Americans we not have to wait for other generations, do not have to wait for major companies or government to solve problems for us, but that we can take ownership and solve these problems ourselves.

(END VIDEO CLIP)

MALVEAUX: Some pretty impressive young folks working with political and business leaders in Washington. By the way, the youngest in our production team, our intern, Noah Gray (ph), he's the one who put that piece together for us, just to show you. Well, you can help support the Buy Young initiative by going to their website, buyyoung.com.

Well, Randi Kaye up next in the NEWSROOM.

RANDI KAYE, CNN ANCHOR: And, thank you, Suzanne.