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Debt Deadline Approaching; Rupert Murdoch's Apologies; Debt Negotiations Continue in Congress; Casey Anthony Faces Defamation Lawsuit; Los Angeles Closing Major Freeway over Weekend; Mitt Romney Compares President Obama To Jimmy Carter

Aired July 15, 2011 - 15:00   ET

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

T.J. HOLMES, CNN ANCHOR: Well, folks, here we are, the U.S. one day closer to missing the deadline for paying its bills.

A lot of people, you may be one of them, looking for signs that the White House and Republicans are getting ready to do a deal. Well, today is not that day. You may have heard that Senate leaders Mitch McConnell and Harry Reid are trying to hash out a plan that will be palatable to both sides, and there's a separate push for a balanced budget amendment. But when the president gave his news conference this morning, he suggested the U.S. doesn't have time have for any of those proposals.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: We don't need a constitutional amendment to do our jobs. The Constitution already tells us to do our jobs and to make sure that the government is living within its means and making responsible choices.

And so this notion that we're going to go through a multiyear process instead of seizing the moment now and taking care of our problems is a typical Washington response.

We don't need more studies.

We don't need a balanced budget amendment. We simply need to make these tough choices and be willing to take on our bases.

And everybody knows it.

(END VIDEO CLIP)

HOLMES: So August 2 is looming. That's the day when the Treasury warns the U.S. will have to decide which bills it will pay, which ones won't get paid.

And with no talks scheduled at the White House today, House Republicans offering up their own new plan.

Listen now to the majority leader, Eric Cantor.

(BEGIN VIDEO CLIP) REP. ERIC CANTOR (R-VA), HOUSE MAJORITY LEADER: We're going to bring a bill forward next week, otherwise known as the Cut, Cap and Balance bill, to provide a balanced approach so that we can demonstrate that we are getting things under control and that the people who put us here can gain some confidence that we're going to begin to live like they do around their kitchen tables and in their businesses, stop spending money we don't have, and begin to manage this debt and deficit down to balance it.

(END VIDEO CLIP)

HOLMES: Let's turn now to our Dan Lothian. He's at the White House for us.

Dan, good to see you, as always. We have been seeing a lot of president lately it seems. He's had a number of press conferences and press availability and coming out making statements, but did he feel, did he seem a little different in tone today at least?

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: Well, yes. You're correct. He did -- he has done three now press conferences in the last two weeks, two this week alone.

And it does seem that the president -- there was a bit of resignation. Certainly the president came out pushing for the biggest deal possible because he believes that's the best way to deal with the deficit/debt problem over the long term. But it did appear that there was somewhat of a softening from the president when he pointed out that a big deal is hard to get.

And he seemed open to whatever Republicans might be discussing up there on the Hill, the president saying that if they have something that is a serious plan and they bring it to him, then he might be willing to move on it, even if it requires making some tough decision.

The president was also asked about the so-called McConnell plan, which essentially would raise the debt limit in three different increments through the end of 2012. Here's what the president had to say about that.

(BEGIN VIDEO CLIP)

OBAMA: If Washington operates as usual and can't get anything done, let's at least avert Armageddon.

(END VIDEO CLIP)

LOTHIAN: So you avert Armageddon because he says it takes care of problem number one, which is essentially raising the debt ceiling, but it doesn't take care of problem two, which is making any significant reductions in the deficit issue and the debt problem.

So it does appear, at least based on what the president was saying, that he will at least be open to something that will prevent the U.S. from going into default and resulting in higher interest rates for all Americans, which the president says essentially a tax increase, exactly what Republicans say they do not support.

HOLMES: And, Dan, we have seen kind of these dueling press conferences this week. The president have one or two even per day up on Capitol Hill, the president having his, Democrats on the Hill also having press conferences, but the Republicans have been consistent.

In every press conference they essentially say we're waiting on the president to put a plan on the table. We're waiting to see details. Well, did he give you guys specifics at the White House today?

LOTHIAN: That's right. No, the president did not lay out a specific plan on the table.

The one specific I think that we did get from the president today is while we have been hearing from sources about the president being willing to put some changes to Medicare on the table, we have not heard that directly from the president.

Today, he was asked that question, and, in fact, did admit that that is something that is on the table in terms of wealthier Americans like himself perhaps paying more for Medicare premiums or co-payments. So that's a little more specific from the president than we have heard from him in public. But beyond that, no official plan, complete plan, if you will, from the president today.

HOLMES: All right. Dan Lothian for us at the White House, Dan, we appreciate you as always. Thanks so much.

LOTHIAN: OK.

HOLMES: We're going to stick to this topic for just a second because there's something we want to show. There was a bit of a demonstration on the House floor today.

Florida Democrat Ted Deutch presented what he called the GOP wheel of misfortune. He says this is what will happen if the U.S. defaults. Check this out.

(BEGIN VIDEO CLIP)

REP. TED DEUTCH (D), FLORIDA: When we spin this wheel this time, we get to bondholders. Well, come August 2, again, someone won't get paid. The GOP default will force the Treasury to deny U.S. bondholders the money that they entrusted to our nation, the college student cashing in a bond their parents bought on their first birthday, the retirees, the retirees who steer their 401(k)s to the most secure, safest investments in the world, at least until the Republican majority forced a default.

(END VIDEO CLIP)

HOLMES: He even brought out Vanna White. It was very cool. Again, that was Florida Democrat Ted Deutch. He did not bring out Vanna White, by the way. Again, that was him on the House floor today making his point. (BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Shame on you! Shame on you!

(CROSSTALK)

UNIDENTIFIED MALE: Shame on you! Shame on you!

(END VIDEO CLIP)

HOLMES: Yes, quite a scene these days for Rupert Murdoch. He is taking heat from critics left and right, but there is one man that is sticking up for him.

(BEGIN VIDEO CLIP)

RUDOLPH GIULIANI (R), FORMER NEW YORK CITY MAYOR: Don't rush to judgment. Give people a presumption of innocence.

(END VIDEO CLIP)

HOLMES: Yes. Coming up, why Rudy Giuliani says back up Rupert Murdoch.

Plus, Murdoch's big apology, we will tell you about that.

Also ahead, the gruesome killing of an 8-year-old boy is still rocking a Brooklyn community, and we're learning some disturbing new information about the man charged with killing him. Stay here.

(COMMERCIAL BREAK)

HOLMES: Well, ever since a media scandal rattled the U.K. and shut down the biggest-circulation newspaper there, it's been not exactly clear whether or not there would be an impact here in the United States.

Maybe it's clear now. Some lawmakers want News Corp. investigated and the U.S. attorney general confirms that he ordered the FBI to do just that. News Corp. is the huge media company owned by Rupert Murdoch and the parent company of the British paper that folded last week under allegations of phone hacking and police bribery.

At least one U.S. congressman is concerned that reporters working for Murdoch tapped into phones belonging to 9/11 victims or their families. Back in the U.K., Rupert Murdoch met today with the family of Milly Dowler. She's the murdered British teenager whose phone was allegedly hacked by reporters from the Murdoch-owned "News of the World."

This is the Dowler family's attorney now.

(BEGIN VIDEO CLIP)

MARK LEWIS, DOWLER FAMILY LAWYER: This was a private meeting that had been called for by Rupert Murdoch. And he was humbled to give a full and sincere apology to the Dowler family.

We told him -- the Dowler family told him that his papers should lead the way to set the standard of honesty and decency in the field and not what had gone on before. At the end of the day, actions are going to speak louder than words.

(END VIDEO CLIP)

HOLMES: Now, again, he apologized to that family, but he's not done apologizing. This, what you're seeing on your screen, is a letter that will appear in British newspapers tomorrow.

Won't read the whole thing, but it says in part: "We are sorry for the serious wrongdoing that occurred. And we are deeply sorry for the hurt suffered by the individuals affected." And it is signed by Rupert Murdoch.

Now, one of his CEOs, Rebekah Brooks, resigned today. She was in charge of News Corp. print media in the U.K.

Well, he's now been dubbed the butcher of Brooklyn, the man suspected of smothering and mutilating an 8-year-old boy. Now we're learning disturbing new information about Levi Aron. That is next.

Plus, this gruesome murder has many asking why a little boy was walking alone in the big city anyway. People asking, should he have been? We're going to discuss that and more with Wendy Walsh. She is with me right after the break. Stay with us.

(COMMERCIAL BREAK)

HOLMES: Well, lawyers for Levi Aron says their client hears voices, and they have questions about his mental state. Levi Aron is the Brooklyn man who pleaded not guilty yesterday to kidnapping and killing an 8-year-old boy this week. That's despite an account by police and prosecutors that Aron actually confessed to suffocating the boy, then led detectives to the child's body parts.

People who live in the boy's neighborhood still in disbelief over this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I'm so sorry for the boy and for his family.

UNIDENTIFIED FEMALE: We hope never, ever, ever to hear such a story again, because it broke everybody's hearts, not just mine's and not just people in our community, all over, all over the state and all over the country and even in other countries. My sister is in Israel now, and she's, like, oh, you're from Battery Park? Oh, that boy. Like, everyone is just talking about this terrible, terrible, terrible story.

(END VIDEO CLIP)

HOLMES: All right, we want to bring in Wendy Walsh. She's a psychologist and human behavior expert.

Wendy, it's always good to see you.

And you hear there the suspect's lawyers say they have questions about his mental state. What would be your first question about his mental state?

WENDY WALSH, FAMILY THERAPIST: Well, obviously, they're going to try to determine whether he's healthy enough to stand trial, but, you know, him mentioning that he's hearing voices and hallucinations leads me to wonder about schizophrenia as a possible diagnosis. But he still may be fit to stand trial.

HOLMES: Let's move away from the suspect here for a second, because this sparked a lot of conversation among parents and some people. And we certainly -- can you imagine what this mother is going through? She allowed him -- he begged, begged, let me walk home on my own. And at some point, all parents, you have to do it. You got to -- you just got to let them go and do their own thing some time.

But a lot of parents wondering, well, 8 years old. Should an 8- year-old be walking around the streets of New York in a New York neighborhood on their own?

Talk to those parents for a second. How do you make this decision? Is it really based on age, the child's maturity, or just when the parent is comfortable?

WALSH: It's based on everything. It's based on the child's age. It's based on the environment.

For instance, I have an 8- and 13-year-old. I live in a neighborhood that has 46 registered sex offenders. My kids don't take one step without an adult with them.

HOLMES: Wow.

WALSH: So, I would look at the environment. I would look at where the child lives in the city and, also, how mature they are. And I would practice it over and over. And generally you start kids off walking with buddies. They don't walk alone at an age.

But this is not to blame the parents because they felt they lived in a safe community.

HOLMES: And you never know. Sometimes things like this just happen, but would a parent's -- they can't help -- a lot of people around the country -- a parent's natural reaction be to a story like this to get more protective of their child, no matter what neighborhood they're in? And is there I guess a danger or a risk in holding on too tight for too long to a child?

WALSH: Of course there is, because kids need to have some autonomy. That's how they grow up and become independent. And it's up to parents to sort of gauge when it's safe and when it's not. I actually consult with a wonderful organization called Safely Ever After.com. Go to safelyeverafter.com and there's tons of tips for parents on how to keep your children safe. First of all, don't teach them about stranger danger. Change it to tricky people. You have got to listen to your stomach to tell if somebody is a tricky person.

And when they're out on the street, don't go to a man. Go to a mother with kids. If you're lost, go to a mother of kids or a cashier at a store, because guaranteed there's a camera on anybody handling money, so the child will be seen on camera.

HOLMES: Huh.

Now, I assume you say go to a mother with kids there because the profiles and people we know over years, those who abduct children or are violent like this are usually going to be men, I assume there.

But, also, something you said there, tricky people. We have heard that other saying for a long time about what you're supposed to look out for in a stranger, the stranger danger. But what do you mean by that, tricky people and trust your gut?

WALSH: Well, the truth is all strangers are not dangerous. In fact, most strangers are quite safe, and they will be quite helpful.

So what we have to teach children to do is to listen to the gut instinct. When their stomach tells them that something doesn't feel right, you have to give them permission to be impolite. That's very important, to give them permission to be impolite if their stomach is telling them something is not right. Boy, I sound like Johnnie Cochran there.

(LAUGHTER)

WALSH: So, it's thinking about who is trying to trick them, so that way it's not so fear-based. It's sort of spotting the tricky people. It's almost a game. And it's safer for kids to do that than worry about every single person they come into contact with.

HOLMES: And, Wendy, one last thing here. And a lot has been made about this neighborhood, this tight-knit community where this kid was walking alone.

Is that a danger sometimes? Can you get too comfortable if you think the neighborhood is a little too tight-knit? Sometimes it's very comfortable. It feels safe. You know everybody in the neighborhood? But can these very types of neighborhoods be attractive to these types of perpetrators who want to come in there and take advantage of that trust in a neighborhood?

WALSH: I do think that parents have a false sense of security when they live in a homogeneous neighborhood where everyone practices the same faith. They feel that a faith-based community will always be safe. The tragedy is that mental illness knows no religion and knows now ethnicity. Mental illness runs through the human population everywhere. And in fact, some people with mental illness are attracted to religious communities because of the loving support and the nurturing that they get in that community. So it's important for parents to not be -- feel falsely safe.

HOLMES: Wendy, great information today. Again, a lot of parents, a lot of people just in general talking about this story, tragic story, but still maybe parents can pause for a moment and a good time to teach those lessons.

Wendy, always good to see you. Thank you so much. Enjoy your weekend, all right?

WALSH: Thanks. Thank you. Take care.

HOLMES: All right.

Well, we're about 20 minutes past the hour now. We have got miserable heat that is coming maybe your way. Yes, triple digits are what we're talking about in places not just in the South. We're talking about places like Minnesota and Wisconsin. Chad is going to explain this to me. He's up next.

(COMMERCIAL BREAK)

(WEATHER UPDATE)

HOLMES: Give you a look at some of the stories making headlines.

Documents recovered from Osama bin Laden's compound put President Obama and General David Petraeus squarely on al Qaeda's hit list. Once source telling us the terror group discussed destroying an aircraft carrying President Obama and Petraeus in the region. Not clear whether the documents indicate a specifically planned attack or if they refer to a general desire to attack the president and Petraeus. Bin Laden was killed, as you know, in a U.S. raid on his Pakistani compound in May.

The United States throws its formal backing behind the rebels fighting to overthrow Libyan leader Moammar Gadhafi. Secretary of State Hillary Clinton said in Turkey today that the U.S. officially recognizes the opposition Transitional National Council as the legitimate governing authority for Libya. That means the rebel group will have access to some of the more than $30 billion in Gadhafi government assets frozen in U.S. banks.

And GOP presidential hopeful Michele Bachmann has left her church. Bachmann and her husband officially withdrew from their conservative evangelical church last month. They were members of the Salem Lutheran Church in Stillwater, Minnesota, for more than a decade. This withdrawal request happened just days after Bachmann announced her decision to run for the White House.

Turn back to Washington, D.C., and the president, President Obama, says we're running out of time.

(BEGIN VIDEO CLIP)

OBAMA: We now have an obligation to pay our bills. If we do not, it could have a whole set of adverse consequences.

(END VIDEO CLIP)

HOLMES: OK. Adverse consequences, what exactly does that mean? What might some of those consequences be if the debt ceiling is not raised? We're going to go after what could happen if Congress fails to reach a deal soon. You don't want to miss this, some specifics for you.

We're back in a second.

(COMMERCIAL BREAK)

HOLMES: All right, the president is repeating his desire for a grand bargain, not a small deal that will get the country out of the latest crisis, but basically would kick the can down the road. Listen to the president.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: We are obviously running out of time. And so what I've said to the members of Congress is that you need over the next 24 to 36 hours to give me some sense of what your plan is to get the debt ceiling raised through whatever mechanisms they can think about, and show me a plan in terms of what you're doing for deficit and debt reduction. If they show me a serious plan, I'm ready to move, even if it requires some tough decisions on my part.

(END VIDEO CLIP)

HOLMES: We want to bring in Rick Newman. Good to have him with us today. He's chief business correspondent for "U.S. News and World Report." And you wrote a good article that got a lot of attention around here, just a good break down really of what happens. We keep hear "Armageddon" and how massive this thing could be. But let's get to specifics of people who could be hurt.

And we're talking first about those Social Security recipients. Let's just say that this thing is allowed to play out, and the debt ceiling is not raised by August 2nd. What happens to Social Security recipients?

RICK NEWMAN, "U.S. NEWS AND WORLD REPORT": The people that will be hurt first and most directly are people who get money directly from the federal government. So that's Social Security recipients. In early August the government is scheduled to pay about $23 billion worth of Social Security checks. And that apparently is one of the things that the government may not be able to pay. Those are checks that go straight to people. They help people pay their bills. And those people in turn may have trouble -- they may not pay their bills and they may start to run late on things like that. That's where we get into this follow on effect.

HOLMES: Let's go to the next group here -- government employees.

NEWMAN: We're probably going to see, if this happens, some furloughs and shutdowns of government offices. There are more than four million employees of the federal government. They're probably not getting paychecks either. And again, we're going to get into a situation where some people won't be able to pay their bills and fall behind on their mortgages and their credit card bills and things like that.

HOLMES: And another group we're not talking enough about in this whole thing, the unemployed.

NEWMAN: Yes. Nearly four million Americans are getting extended benefits, unemployment benefits from the federal government. These are people who have mostly run out of the state level benefits, which last for about 26 weeks. Again, those are checks that go straight to people's mailboxes and may not arrive in early August.

HOLMES: All right, let's lump those three together -- unemployed, government employees, and Social Security recipients. If they don't have money to spend, they're not going to put it back into the economy. Now we have this domino effect that's going to hurt an already struggling economy.

NEWMAN: Yes, that's right. So if this happens for a day or two, in terms of the spending that will be lost in the economy, it won't be that severe. But if it goes on for very long, we're talking about people that can't pay their rent, pay their mortgage, and for some people who are really strapped probably put food on the table.

We're talking about money that gets spent directly into the economy, especially for unemployment benefits. That money gets spent for the most part. It doesn't get saved. And this is part of the picture for why this starts to become a worrisome thing that doesn't just stay limited -- the effects are not just limited to those people who are getting those chokes. They start to affect the overall economy.

HOLMES: All right, Rick, you've been covering this town. Even if they're crazy, they're not this crazy. So why put us through all this? I think most people don't think -- most of the experts and folks like yourself and the economists out there, they're not going to be crazy enough to actually let this happen. We're just having to go through the motions. Are you one that agrees with that?

NEWMAN: I'm not sure. I mean, I think this has been the assumption all along, the politicians in Washington wouldn't be crazy enough to shut down the economy like they're threatening. But it's really getting close to a trouble point.

And the government is saying that we need a decision before we actually run out of money in early August in order to keep things functioning smoothly, and they're getting awfully close. We keep hearing both sides saying we're ready to put forward a serious plan now. And I think Americans can be excused for wondering what the heck have you talked about for the last three months if you haven't even put forward a serious plan yet?

So we are in the very late innings here, and you know, there are a lot of problems that need to be solved. I think CEOs want to think about can they hire people in the fall, or will they have a recession to deal with? I think this is really becoming a factor that's depressing consumers. I think it's depressing CEOs and it's almost like the economy is on hold until they get it figured out.

HOLMES: Good point there. Well, I was hoping you'd be a little more optimistic and say no way they will let this happen.

NEWMAN: Well, I'll give you one note of optimism.

HOLMES: OK.

NEWMAN: If this does get resolved in a way that looks like we're putting this behind us for a while, it will be a significant boost to the economy. This is one of the biggest kinds of uncertainty that CEOs complain about right now. We don't know what will happen in Washington. We don't know what climate we will be operating in. So if we can get this behind us, that alone -- this is a manmade crisis right now, but even having said that, if we can get it behind us, I think people will feel a lot better.

HOLMES: Don't say another word. I'll let you leave it on a high note. Rick, good to see you. Rick Newman for "U.S. News and World Report," you have a good weekend.

NEWMAN: Thanks for having me. You, too.

HOLMES: All right, we're 37 minutes past the hour here now. You probably heard Casey Anthony will be a free woman this weekend, set to go free on Sunday. But soon she might be a rich woman as well. Her million dollar offer is waiting in the wings. That is next.

Plus, Los Angeles, the city is gearing up for major gridlock this weekend. I know what you're thinking. It's L.A. big deal. They have gridlock every weekend. No, no. This one is different. "Carmageddon" is what they call it, and it is just hours away. We'll explain what's happening.

But first, here now is Dr. Sanjay Gupta with this week's "Human Factor."

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN SENIOR MEDICAL CORRESPONDENT: Kevin Robb's sculptures can be found in museums, parks, and private collections all over the world. But for the past seven years this Denver artist hasn't been able to sculpt.

DIANE ROBB, KEVIN ROBB'S WIFE: I was teasing him about what you think that sculpture looks better from the ground up? Then I took a look at him, and I could tell there was something seriously wrong. GUPTA: What Kevin's wife didn't know is that her previously healthy husband had a blood clot which had travelled to his brain and caused a massive stroke.

DIANE ROBB: He was on life support for 13 days, and then from there he was in rehab hospitals for seven weeks.

GUPTA: When Kevin finally came home, he had lost his memory, his ability to speak, and most of his movement. But when he was taken back up into his studio, something inside him lit up.

DIANE ROBB: He stood here, walked over and touched some of his machinery, and for the first time since his stroke there was life in his eyes.

GUPTA: Kevin continued his rehabilitation, and over time he learned to walk on his own. Bits of his memory came back, and he can now speak more than 100 different words. All of that led him to be able to make art again.

DIANE ROBB: Kevin's sketches, we have staff that understands what he wants, and Kevin is back in full swing in creating sculptures.

GUPTA: None of it has been easy. Diane and Kevin have to speak in a sort of complicated type of charades.

DIANE ROBB: You want to go someplace?

KEVIN ROBB, ARTIST: I want the keys running.

DIANE ROBB: He wants the keys to the truck so he and Tom can go someplace.

KEVIN ROBB: Yes.

GUPTA: Diane says Kevin's love for his family and his fierce determination to get better brought him and his art back to life.

Dr. Sanjay Gupta, CNN, reporting.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

HOLMES: Well, we turn to Casey Anthony now, and what's next for her after she walks out of jail on Sunday. Special precautions will be taken during her release. A lot of people are still upset, as you know, over the outcome of her murder trial.

And is also Anthony facing a defamation lawsuit by a woman named Zenaida Gonzalez. She got caught up in Anthony's lie about, you remember, Zanny the nanny taking her daughter, Caylee. A hearing of that case is set for this hour.

And then there's the offer of $1 million for an interview. A lot to get into with our guy Gary Tuchman, who joins us now with details. Gary, let's start with this release. I assume it is just going to be a madhouse, everyone wanting to get a look, the public and the press. So what are they doing to make sure this thing goes smoothly?

GARY TUCHMAN, CNN CORRESPONDENT: Well, I don't know how much of a madhouse it will be, T.J., because what's being done during this release is something I've never seen done before in my history of covering cases. This is the jail behind me where Casey Anthony is, and what the sheriff's office has decided to do is allow three journalists, a video photographers, a still photographer, and an A.P. photographer to be embedded, sequestered in the jail. Tomorrow night at 10:00 eastern time they will go into the jail. We don't know the exact release time. It could be as early as 12:01 a.m. two hours later Sunday morning.

But they will photograph, videotape her release. And then when she's safely out, all journalists, all of journalism will be permitted to release these images on TV once we get the authorization from the sheriff's office of Casey Anthony going free.

HOLMES: And I hear this right, it sounds like they are essentially going to be sneaking her out of the prison, I guess. Are they equipped to do that? I assume there are only so many places and so many exits, if you will. Maybe I'm wrong there. You help me. But they're essentially putting in a plan to sneak her out.

TUCHMAN: Well, there are at least six entrances and exits into this huge, sprawling facility. I kind of joked but this is -- we're near the happiest place on earth, Walt Disneyworld 15 miles away. This is one of the saddest places on earth. There are six entrances or exits here.

I apologize. I have a little laryngitis if I sound kind of unusual. But what's going to happen is we don't know any the plans for how she'll be taken out, what exit she'll be taken out, and where she will go. All we know is to avoid having lots of media congregate around here. They're allowing three of our types to be inside there documenting it, and then it will be on television.

HOLMES: Well, I'm sorry you're not feeling well, the laryngitis you're dealing with. I wonder if I should get another question to you here.

TUCHMAN: Please do. I feel fine. Don't worry.

HOLMES: OK. This lawsuit we're talking about involving the whole lie about Zanny the nanny, what's the status there? What happens?

TUCHMAN: It's really interesting. As we speak right now a hearing is taking place. As you know, Casey Anthony is a chronic, habitual liar, and during this whole business she said her child was kidnapped by her nanny Zenaida Fernandez Gonzalez. Of course, it wasn't true. It caused all kinds of unnecessary searching to go on. She could have benefited from all this delay and looking for Caylee. That's the irony about all this. But anyway, there is a real Zenaida Fernandez Gonzalez who lives in the Orlando area. This Zenaida Fernandez Gonzalez believes that Casey got her name from a listing on an apartment building, and she is suing for defamation. Now, her lawyers, Zenaida's lawyers, want Casey to participate in a deposition this Tuesday, but they don't think she'll come back. And if you were betting in Las Vegas on whether they would come back, you would get good odds that she would come back. So therefore what they're hoping is she has to participation in a deposition in jail before she gets out, and that's what this hearing is all about which is taking place as we speak.

HOLMES: All right, Gary Tuchman for us on the scene. Gary, we appreciate you, as always. And please, take care of yourself and get better. Thanks so much, buddy.

Of course, Los Angeles known for its nasty traffic. How can it get nastier? How about you shut down one of the busiest highways in the nation that L.A. depends on?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Most of the people go through their lives trying to avoid the 405. This is the one weekend we want to tell you, you really need to avoid the 405.

(END VIDEO CLIP)

HOLMES: Yes, they are calling this "carmageddon." It's set to begin in just a few hours. Stay here.

(COMMERCIAL BREAK)

POPPY HARLOW, CNNMONEY.COM: Time now for the help desk where we get answers to you financial questions. 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 Downingtown, 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, 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 events and different investment managers and different styles and strategies.

So putting all your eggs in one basket is the right way to go about doing it. Talk to a good financial adviser that can give you a plethora of investment selections and securities that you can have, and just choosing it and putting in a good strategy that's good for you. Ninety percent of your portfolio return is attributed to asset allocation according to the Burnson (ph) study back in the 90s. We have to make sure with diversifying and properly allocating.

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

RYAN: Bernie Madoff proved us wrong with that strategy.

JACK OTTER, EXECUTIVE EDITOR, CBSMONEYWATCH.COM: And keep your expenses down. Think index funds.

HARLOW: Right. Well, we have a question for you, Jack. It comes from Sarah in Phoenix. Sarah writes "My boyfriend and I are considering getting married. His house is 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: Are you sure you want to marry this guy? That's my first question.

(LAUGHTER)

HARLOW: That's the important one.

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

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

HARLOW: As long as they stay married.

OTTER: Yes, exactly.

HARLOW: Thanks guy. If you have a question you want answered, just send us an email any time to CNNHelpDesk@CNN.com

(COMMERCIAL BREAK)

HOLMES: Well, the trending topic today, the countdown to what the folks out in L.A. are calling "carmageddon" just a few hours from now. A ten-mile stretch of the 405 freeway will close for a bridge demolition. The 405 is a major highway between Burbank and Los Angeles. You usually don't ever want to be on this thing in the first place, but certainly not this weekend. People are worried now about what they're calling epic traffic jams.

Casey Wian in L.A. for us on the 405. Casey, L.A. is known for traffic jams, but when they even are concerned about rough traffic, you know something is up.

CASEY WIAN, CNN ANCHOR: Absolutely, T.J. There's a lot of concern about what's going to happen when they shut this 405 freeway down for a total of 53 hours. The main culprit, you can see over my shoulder there, that's the Mulholland Bridge. Officials are going to gradually demolish that bridge. They've got to widen out the support structure to make more room for carpool lanes. That will ultimately ease congestion in the long run here. But in the short term, this freeway is going to be completely shut down.

And what authorities are very worried about is that traffic flowing to other freeways throughout southern California and creating gridlock throughout the region.

Now, they've been warning people for weeks to avoid the 405 and to avoid all southern California freeways if you can this weekend. We can take a look at a camera that we have got in a car being driven by my colleagues. They're actually on the 405 right now giving you a glimpse of what traffic is like. And frankly, for a Friday afternoon at about 1:00 local time where people are beginning their commute home for the weekend, traffic is behaving pretty well. In fact, it might be a little bit lighter than normal. So it seems that folks are starting to get the message, staying away from this area until they absolutely have to drive, T.J.

HOLMES: And Casey, you said they're starting to get the message. I mean, they've gone out of their way, the authorities there in southern California, to make sure that this message got out. I guess what were some of the methods they used to try to make sure people heard about this?

WIAN: They pulled out all the stops. Driving around southern California the last few weeks, there have been lighted freeway signs on freeways, 20, 30, 40 miles away from here that you wouldn't even think would be impacted. They've been asking celebrities to send out tweets. Lady Gaga, Kim Kardashian, Demi Moore, Ashton Kutcher, they've been asking them to send out tweets to their followers warning them to stay away.

The authorities here have opened up their own Twitter accounts and Facebook pages. I'm going to read you one of the Facebook entries that the 405 widening project just sent out a little while ago. It says that "Trusting souls have been calling our hotline and asking for travel times between point A and point b. Well, we don't know." So even the authorities have no idea how bad it's going to be.

(LAUGHTER)

WIAN: One other interesting note. We talked about that bridge being demolished. It's only going to be demolished in half, lengthwise. Well, groups of bicyclists and skateboarders have asked for permission to go across that bridge as it's being torn down. The authorities have denied that request, T.J.

HOLMES: You got to love L.A. Only in L.A. can Lady Gaga and Kim Kardashian become traffic reporters. Casey Wian out there, we'll talk to you again, buddy. Thanks so much.

Well, we're coming up on the top of the hour here on CNN. And Michele Bachmann is now leaving her church. And which past president is Mitt Romney comparing President Obama to? Wolf Blitzer has all that in your political ticker. He is up next.

(COMMERCIAL BREAK)

HOLMES: Let's turn to your CNN political update. And for that, let's turn to Wolf Blitzer who joins us now for the latest from the CNN Political Ticker. Wolf, hello to you. Always good to you. And Mitt Romney says president Obama is like who?

WOLF BLITZER, CNN HOST, "THE SITUATION ROOM": Yes, Jimmy Carter. He's being rather blunt that he's going after President Obama by making comparisons to Jimmy Carter. He's pointing out that Jimmy Carter left the economy, left the U.S. economy when he left office in really bad shape, high inflation, as a lot of our viewers probably remember. Interests rates were very high, and America wasn't respected as a result of 444 days of Americans - American diplomats held hostage in Iran.

Now Romney is making that comparison. The former Massachusetts governor really going on the offensive, saying "Mr. President, Americans are stressed about rising unemployment, falling home prices, and an economy that isn't working for them. Not since Jimmy Carter have we seen such failed economic policies. Who would have guessed that we would look back upon the Carter administration as the good old days?"

So Romney arguably the frontrunner right now in the Republican race for the White House going on really on the attack against President Obama.

Some other political news we're following right now, including Michele Bachmann. We just got word from our own Eric Marrapodi, one of our producers, that Michele Bachmann and her husband Marcus, they have left their long-time church. Actually, they left it a couple of years ago. We didn't know about it. But for some reason they decided to leave their church in Minnesota.

And I guess there's a little bit of controversy involving the decision, why they left it, where they've been going to church over the past couple of years. We're still work on the story. But go to CNNpolitics.com and you can get the latest on our Political Ticker on this part of the story.

It brought back some memories of when Barack Obama was running, and you'll remember he left his church at the time, the Reverend Jeremiah Wright causing a big stir. So there may be more to this story that we don't know about yet, but we're working this story.

One final note on a different political note, Bristol Palin, the daughter of Sarah Palin, she is optimistic that her mom when all the dust settles will, in fact, run for the 2012 Republican presidential nomination and will, in fact, win. So we'll all wait and see. We don't know what Sarah Palin is going to do.

HOLMES: Optimistic, but she's not speaking for the Palin camp necessarily? BLITZER: No. And her mom said in a recent interview with "Newsweek": "I think Bristol has made up her mind, and Bristol wants me to run for president, but we're still thinking about it. I'm still thinking about it.

She's repeated this week, by the way, the former Alaska governor, that if she ran, she thinks she could win.

HOLMES: All right.

Good to see you, as always. We will be seeing you again here shortly. Thanks so much.