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Clock Ticks Toward Default; Video Shows Killings By Taliban; Casey Anthony Free; Japan Defeats U.S. in Soccer Final; New Wall Street Watchdog; Don't Mess with Boswell
Aired July 18, 2011 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BROOKE BALDWIN, CNN ANCHOR: And now it's just about the top of the hour. Watch this.
BALDWIN: Fifteen days till the U.S. may not be cover all of its bills, and Washington still doesn't have a debt deal. Coming up, I'll speak to some of the agencies threaten to downgrade America's credit rating, which affects all our wallets. I'm Brooke Baldwin. The news is now.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: We think of ourselves as a sleepy little town.
BALDWIN: A woman found naked, lifeless, hanging from the balcony of a CEO's mansion. Now his six-year-old son is dead. We're getting answers as this bizarre mystery unfolds.
Heads are rolling and the hot seat is waiting. Hours from now, Rupert Murdoch and his inner circle are set to face tough questions about the media empire's hacking scandal. Find out what to expect.
Plus, Casey Anthony vanishes after walking free.
CROWD: Caylee! Caylee!
BALDWIN: But is it truly possible for anyone to just disappear? Sunny Hostin is on the case.
(END VIDEO CLIP)
And welcome back. I'm Brooke Baldwin. Here we go, hour two.
House Republicans set to vote tomorrow on a plan to balance the federal budget. And, look, a lot of folks are saying it's political theater. It's wasting valuable time as the clock continues to tick, tick, tick, toward a potential government default.
We think, hey, let's take a look at what's being proposed here.
And to help me do that, Mark Zandi, he's a heavy hitter. He's chief economist for Moody's. You know them. They are the credit rating service. We hear oftentimes about the stellar AAA rating.
Mark Zandi, good to have you on. We are awaiting, as I mentioned, you know, the fine print on this Republican legislation. But we keep hearing something about a cap. And I know it's a cap on federal spending. And take a look at this -- somewhere in the range of 18 percent of GDP, gross domestic product.
Please tell me what that means. And, specifically, because this is when all the ears will start perking, what that would mean for job creation -- which the Republicans say is their top priority.
MARK ZANDI, CHIEF ECONOMIST, MOODY'S ANALYTICS: Well, 18 percent of GDP. So government spending would have to equal 18 percent of the value of all the things that we produce. And it's not a magical number. That has been the average spending to GDP ratio since the early 1970s. So, the logic is that -- or the thinking is that, well, if that's been the average since the 1970s, then that's good enough for us going forward.
But, you know, of course, the demographics of our population change. As you know, there is an aging of the population. Medical care costs are rising very quickly. So, if we stick to that 18 percent, that would, in all likelihood, would mean some pretty significant cutting, and the cutting would be even more significant than, for example, what has been proposed by Congressman Ryan in his budget, his pretty controversial budget.
BALDWIN: Yes. But if you take all that money, if suck that money out, what does that do for jobs in the government?
ZANDI: Well, you know, I think if you would phase something like that in over a long period of time, the economy could probably -- I don't think it could digest 18 percent of GDP, but the economy can digest spending cuts if we do it in a measured way over a period of 10 years. And that's what the thinking has been in Washington. And I think that's appropriate. We can do that.
BALDWIN: OK.
ZANDI: I'm not arguing that we should pile on the spending cuts in the very near term because the recovery is still obviously very fragile. But we can digest government spending cuts over a longer period of time.
BALDWIN: Now, as we hear, Mark, about this cut, cap and balance. The balance comes from -- they want, you know, this balanced budget amendment. So, in other words, they're asking to amend the Constitution. It's a lengthy, lengthy process -- to state that the federal government has a balance, and it's balancing both its books, you know, keeping them all set.
ZANDI: Sure.
BALDWIN: What does Wall Street think of that idea, fifteen days ahead of this August 2 deadline?
ZANDI: Well, I mean, I understand sort of the logic behind trying to go down that path. But, you know, I think the general thinking or view is that, you know, this doesn't have much of a chance. And, therefore, let's get on with the main event. And that is, let's raise the debt ceiling.
And I think Congress and the administration needs to come through next week and do that. This balanced budget amendment is a side bar and really isn't going to make much difference in terms of the current problem that we have.
BALDWIN: When we talk about this problem, we talk about the debt ceiling. I heard a great quote from, you know, someone who lives from Middle America saying, I can't think about trillions, I'm having a tough time enough thinking of hundreds and thousands of, you know, within my own household, right? And then you have these people trying to wrap their heads around this idea of a debt ceiling.
Let's just back up, Mark Zandi. I mean, why do we have a debt ceiling? How long have we had a debt ceiling? And is a debt ceiling more trouble than it's worth?
ZANDI: All really good questions. Well, we've had a debt ceiling since 1917. It was implemented back in 1917 as part of the debate, discussion about paying for World War I. The debt ceiling has been -- yes, it's almost 100 years old. And we've -- I think we've raised the debt ceiling at least since 1960. We've raise it 65, 70 times, generally without incident.
I really don't think it's very helpful in terms of really what matters here, and that's getting our fiscal house in order. And, obviously, it does create difficulty. We can see that in the current context.
Now, having said that, you know, maybe something good comes out of this really scary process that we're in. It would be nice if policymakers could raise the debt ceiling this week, hopefully, by next week, and out of that, we get some true deficit reduction. That would be nice.
But, in general, I think the debt ceiling is probably is anachronistic idea, a bad idea, and it would be great if we could get rid of it.
BALDWIN: That's interesting. Now, as we talk about debt ceiling, we have you on, because I want to talk about this beautiful, you know, stellar AAA rating, right? I know Moody's is taking a look at that. Standard & Poor's is taking a look at their own rating -- possibly to downgrade.
Let me just also ask you: what does the credit rating really mean? Who looks at that credit rating? Why does it matter? And how's that affect just Americans?
ZANDI: Well, global investors look at it carefully. Of course, we rely very heavily on investors in buying our debt. In fact, half of the debt that we've issued is owned by investors overseas. So, it really matters to them.
But more fundamentally, the AAA is just representative of the fact that we have paid our bills throughout our economic history, you know, for almost 200 years. And because of that, people trust us that we are going to make good on our debts. That means we can borrow on a very, very low interest rate.
And, in fact, it really is beneficial to us in a current environment -- when people are scared anywhere on the planet, they come and buy our debt. That's why you can get a fixed mortgage rate for 4.5 percent. That's about as low as it's ever been.
So, we want to work really hard to protect that. And that means we' got to make good on our debt. We just cannot go down the path of even suggesting the possibility that we're not going to make good on it.
BADLWIN: Now, Mark Zandi, we hear from those sides. And they said, yes, you know, nobody wants the nation to default. And there are all these different sorts of iterations of a possible way to, you know, not -- to not have this big issue -- you know, this calamity come August 2nd.
But what if more of a short-term deal is reached and it's not this grand bargain that perhaps maybe the president is looking for, even if it's short term -- would that still possibly mean that our rating goes down?
ZANDI: It's possible, but I think it's much less likely to happen. If policymakers come forward and raise the debt ceiling, let's say sufficiently, to push this onto the other side of the election and there is some deficit reduction as part of the deal and even better if they come to an agreement on some kind of mechanism to try to think about how we're actually going to do this over the course of -- come together over the course of the next year or two, with these three things, then I think we're going to satisfy global investors and we'll be just fine.
Of course, we haven't solved all our problems. We'll have to come back after the election.
BALDWIN: We'll do that later. We'll do that later, Mark Zandi.
Yes, 20 seconds or less, how optimistic are you that this calamity will be avoided come August 2nd?
ZANDI: I'm optimistic. I'm very optimistic. I mean, you know, Churchill has really this very great adage about Americans trying everything. When it comes to -- at the end of the day, they do the right thing. I think I botched that, but that's the principle.
BALDWIN: Paraphrase, we get it. Hopefully, both sides will be doing the right thing come August 2nd. Mark Zandi, such a pleasure having you on -- from Moody's. Appreciate it very much.
ZANDI: Thank you.
BALDWIN: And now, if it's interesting and if it's happening right now, you're about to see it. "Rapid Fire." Let's go.
Beginning in India, and I have to warn you, some of this video here is pretty disturbing to watch. Watch this with me and you can see -- here we go, the family, climbing over some rocks when this sudden rush of water -- keep your eye on the picture here -- a sudden rush of water sweeps them over this water fall. They're going to start to go in just a moment here.
But the two -- there they go. The two manage to swim to safety while the other three drowned. There have been heavy, heavy rains and flooding in central India recently.
Legendary pitcher Nolan Ryan is in the hospital. The Major League Hall of Famer was admitted in Houston yesterday after falling ill at his home. He's 64 years of age and has a recurring heart condition. And he spent 27 years in the big leagues, holds the Major League record for career strikeouts.
And in San Diego, some uninvited guests crashed a Padres baseball game. You can figure out what those guests are. Right in the middle of a game, a swarm of bees invades the stadium here. You can see bees everywhere on the stands, on the field, even attacking some of the players -- you can see them swatting them about. The game had to be delayed for several minutes until the bees decided to move on.
Now to Indonesia where a volcano rumbled to life last week. This is video here from yesterday when two massive eruptions and ash and debris more than 11,000 feet up into the air. Nearly 5,000 people have fled their homes and have had to take cover in makeshift shelters.
And now to 61-year-old Yukari Mihamae of Colorado. She was arrested of groping a female TSA agent in Phoenix after refusing a security screening. Did you hear about this? She allegedly grabbed the agent's breasts with both hands. The reaction from fellow air travelers? Listen for yourself.
(BEGIN VIDEO CLIPS)
UNIDENTIFIED MALE: Surprise you that somebody did that to the TSA?
UNIDENTIFIED FEMALE: I don't know. I mean, nothing really surprises me, I guess.
UNIDENTIFIED MALE: I'm surprised it hasn't happened sooner.
(END VIDEO CLIPS)
BALDWIN: She was released from jail on Friday, faces felony sexual abuse charges.
Now this --
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: We think of ourselves as this sleepy little town, you know, like Pleasantville. So, it's quite a shock.
(END VIDEO CLIP) BALDWIN: A freak accident inside this California mansion leads to a little boy's death. But within days of that, a woman is found -- she's hanging nude, tied up from the mansion's balcony. What really happened inside? What does this multimillionaire owner know? That's next.
Also more on our breaking news, the whistleblower in the News Corp hacking scandal has been found dead in his home this morning -- just hours before Rupert Murdoch is set to testify about the scandal threatening his entire media empire. We're going to take you live to London, coming up.
(COMMERCIAL BREAK)
BALDWIN: Talk about a sad and really bizarre story. It's unfolding in San Diego. He happened to be a multimillionaire's young son. He is dead. The man's girlfriend is dead as well.
And police have a number of questions about what actually happened at the CEO Jonah Shacknai's California mansion.
Here is 6-year-old Max. Max Shacknai died in a San Diego hospital just over this past weekend. Now, police say he fell down the stairs at the mansion in Coronado last Monday. Max initially, critically injured. Police chief says he wasn't breathing when paramedics arrived. So, that's one layer.
The next layer of the story is two days after Max's apparent accident, the body of the Jonah Shacknai's girlfriend, Rebecca Zahau, was found hanging by a rope from a second story at the mansion, totally naked. The San Diego County sheriff's department says her ankles, her wrists were bound, but still no one is saying how they were bound.
Authorities say her death may have been a suicide. Her body was found by Adam Shacknai, that's Jonah's brother. He lives there on the property. The sheriff's department says they haven't found any connection between these two deaths. They're looking into that.
Now, Jonah Shacknai is the founder and CEO of a pharmaceutical company that makes, among other items, the wrinkle peeler Restylane.
And I talked to Steve Schmidt. He's a reporter with the "San Diego Union-Tribune." He's digging on this story. And I asked him what police are saying about Rebecca Zahau's death.
Here's what he told me.
(BEGIN VIDEOTAPE)
STEVE SCHMIDT, REPORTER, SAN DIEGO UNION-TRIBUNE: This could be a homicide or a suicide. They're not saying which way they might lean. They don't see this as an accident. They see this clearly as one or the other, and they're treating both equally and they're saying they're looking at either possibility.
BALDWIN: How exactly was she found? What time of day was it? Where was her boyfriend?
SCHMIDT: She was found reportedly around 6:30 in the morning on Wednesday by Jonah Shacknai's brother Adam at the mansion. And since then, the authorities have been interviewing the Shacknais at length and anyone else, neighbors as well, about what may have happened.
The sheriff's department says they've been very cooperative so far.
BALDWIN: Now, I was reading your piece about Jonah Shacknai, the man who as we mentioned, you know, has made millions of dollars here in Restylane and other products. But you write about how he was also the guy who, you know, would pick up the phone and call his clients, like thousands of clients each and every year to wish them happy birthday.
SCHMIDT: Yes. He's seen as kind of an unusual figure in that industry and that he likes to maintain a very personal touch with his customers -- the dermatologists and others who help sell the products that he pitches across the country. And will make something like 1,500 calls a year to dermatologists on a birthday, just saying, hey, you know, are you happy with the product, happy birthday, that kind of thing.
BALDWIN: What -- I mean, I imagine, he's not talking at all. But what about folks in the neighborhood, did they report seeing anything, hearing anything? It's just odd.
SCHMIDT: No, and it's not a tight knit neighborhood at all. It's extremely wealthy neighborhood, obviously. It's facing the ocean, facing the Pacific out here, and a series of very gorgeous mansions and manors and all kinds of houses.
And folks, they are known for being tight knit, they sort of stay behind their walls and keep to themselves. And the folks I talked to so far have said they really didn't have any clue there were any kinds of problems there at all.
(END VIDEOTAPE)
BALDWIN: Steve Schmidt, "San Diego Tribune" -- thank you. So far, no arrests, no words of suspects in this case. We're going to keep watching this one for you.
Hugo Chavez back in Cuba, ready to undergo chemotherapy for cancer. But the Venezuelan leader is resisting calls to hand over presidential powers. Can he run the country during chemo treatment?
But, first, horrifying video coming out of Pakistan today. Several men, allegedly Pakistani police -- they are lined up and shot to death by Taliban forces. We're going to show you some of the video and get the story behind it, coming up next.
(COMMERCIAL BREAK)
BALDWIN: A couple of items here in "Globe Trekking."
First, an extremely graphic video emerging today from Pakistan, reportedly released by Taliban militants who claimed they shot to death at least 16 men believed to be police officers. The video shows this brutal killing.
Let's get more from Reza Sayah in Islamabad -- Reza.
(BEGIN VIDEOTAPE)
REZA SAYAH, CNN INTERNATIONAL CORRESPONDENT: Brooke, this is a graphic look at how ugly Pakistan's war against the Taliban can get. We warn you, this is explicit video. Some of you may find this very disturbing. If you want to turn away, this is a good time to do so.
Let's walk you through the video. It was released by the Taliban, posted online. It shows at least 14 men lined up, all of them wearing traditional Pakistani garb. All of them appear to have their hands tied behind them.
In front of them, you see at least three armed men. We assume these are Taliban fighters. One is scolding the men who are lined up, accusing them of being enemies of Islam, saying that these executions are about to take place in revenge for six children allegedly executed by Pakistani security forces in the Swat Valley.
This is something military officials here vehemently deny ever happened. Once the scolding is done, that's when you see and hear the gun fire.
Let's watch and listen.
(VIDEO CLIP PLAYS)
SAYAH: During the gunfire, you see the men lined up to the ground. Some of them are riving and moaning in pain.
What we're not going to show you what happens next. That's when at least one or maybe two of these gunmen walk to these men who were just shot and shoot them again. Sometimes in the head, in an apparent effort to make sure that they're dead.
Pakistani military believes these men who were shot were policemen who were kidnapped during a cross border attack on June 1st. On that day, militants crossed over from Afghanistan and attacked a village on Pakistani soil. They believe the gunmen were members of the Pakistani Taliban from the Swat Valley, a Pakistani stronghold -- Pakistani Taliban stronghold until a military operation chased them away.
We haven't been able to independently verify the identity of the gunmen or the victims. The military here says this is clearly by the Taliban to intimidate local villagers and security forces. The military insists this is a tactic that will not work -- Brooke.
(END VIDEOTAPE)
BALDWIN: Reza Sayah, thank you very much.
Also today, the president of Venezuela back in Cuba. It's not a matter of state. It's a matter of, really, health, purely personal here.
President Hugo Chavez has chosen to receive treatment for still undisclosed type of cancer. He will reportedly undergo chemotherapy. No word on how long he plans to be in Cuba.
And this is an enormous storm headed straight for Japan. It is a typhoon that should make landfall tomorrow. Workers are scrambling right now to protect the nuclear reactors damaged in the earthquake and tsunami back in March.
And the prime minister of Italy on trial in Milan on charges he had sex with an underage girl. The judge today rejected all defense motions. He scheduled the next hearing for early October. Prime Minister Silvio Berlusconi faces separate hearing today on corruption charges related to his media empire.
Back home, the race is on to reach a deal on America's credit limit. Experts say, look, if nothing gets done, it could have catastrophic. It could have dire consequences on the economy and each and every one of us. But we're also now learning what happened behind closed doors between a secret meeting between the president and Republican leaders. That's next.
(COMMERCIAL BREAK)
BALDWIN: Let's get that "CNN Equals Politics" update for you and go to Gloria Borger with the latest news from the Political Ticker.
And, Gloria, before we talk debt deadline, I do want to issue you a congratulations, a little birdie, Kevin Bond (ph) tells me you have been nominated for an Emmy.
GLORIA BORGER, CNN CHIEF POLITICAL ANALYST: Thank you. Yes, we have. It's really great.
We did a piece on Ted Olsen and Davis Boies, the two lawyers from the opposite side of the political aisle who are doing the Proposition 8 case in California, trying to overturn. So, you know, in this year of political bickering, it's kind of an interesting piece to do of a Democrat and Republican actually working together.
BALDWIN: Yes. Speaking of working together, that perfectly dovetails into, what, the president, Speaker Boehner, House Majority Leader Cantor. They've been talking -- we heard the president walking out of the Rose Garden today, he said, "We're making progress."
BORGER: He said, "We're making progress," right. Yes, I don't know. It depends on how you define progress, right, Brooke?
And a Boehner spokesman said, quote, "The lines of communication are being kept open." So, what does that mean? It means that they all want to be the adults. They're telling the American public they are still talking. They are making progress.
But in truth, I think we're in a situation where we're still going to tread water for a while. And it's going to seem like Groundhog Day every day until they actually get a deal, which I still believe they will do before D-Day of August 2nd, but I'm a Pollyanna.
BALDWIN: As am I. So, we might think (INAUDIBLE).
BORGER: Yes, actually.
BALDWIN: And as we hear these different, you know, negotiations, we're also now hearing in the House a lot about this cut, cap and balance. As in cutting taxes, capping future spending and pushing a balanced budget amendment. Why now, Gloria? Why do this now?
BORGER: Well, would you have to say there's a little bit of politics in that, Brooke?
BALDWIN: Political theater much?
BORGER: Yes. Look, these are things that conservatives really want. And if they're going to have to swallow raising the debt ceiling at a certain point, this is kind of something they can vote for. And they can vote for it quite easily because, of course, they like the idea of a balanced budget amendment.
Now, the president or the White House, I should say, issued a statement saying that the president would actually veto this because he believes it would unduly harm senior citizens and unduly harm those most in need of government funding.
So, obviously, something Republicans going, we know it's not going to become law. We know it's not going to pass the Senate. We know lots of things. But they actually want to get on the record voting for this.
BALDWIN: Well, for all the non-Pollyannas, if what they predict happens, right, and the debt ceiling isn't ultimately raised and we default, who do we point fingers at?
BORGER: I think you can guess that one, right? It's absolutely at everybody.
There was a new CBS poll out today, Brooke. And the question was asked about disapproval of the handling of the debt negotiations. Forty-eight percent disapprove of the way President Obama is doing it and Republicans in Congress, 71 percent. Democrats get off sort of OK.
But as you can see, maybe if nothing else, Brooke, maybe these numbers will convince them to do a deal because nobody comes out smelling like a rose here, nobody.
BALDWIN: That and a threat of downgrading credit ratings. I just talked with Mark Zandi about that. There's a lot at stake here, Gloria Borger, a lot.
BORGER: Exactly.
BALDWIN: Thank you very much.
BORGER: Thank you.
BALDWIN: And now to this, a shocking development in the scandal involving Rupert Murdoch's empire, just mere hours before he's scheduled to testify. The whistleblower in this whole case, he's been found dead. That story is unfolding right now.
Also, British Prime Minister David Cameron has just made a dramatic move as the scandal grows and more heads begin to roll. We're live in London, next.
(COMMERCIAL BREAK)
BALDWIN: The whistleblower in the News Corp hacking scandal is found dead. That story is developing this afternoon. Also, book store chain Borders is disappearing fast. And find out what you need to know before you buy your next pair of shoes.
Time to play "Reporter Roulette." Matthew Chance, I want to begin with you on the developing story. It's the whistleblower, his name is Sean Hoare. As you mentioned to me last hour, former showbiz reporter from News of the World, and he was speaking out as recently as what? Last week to "The New York Times" about these additional hacking techniques. What more can you share about him and his death?
MATTHEW CHANCE, CNN INTERNATIONAL CORRESPONDENT: Yes, well, he had some pretty exclusive allegations he was making, this former showbiz correspondent of News of the World. Very well placed, of course, to know exactly what was going on inside that now defunct newspaper.
He made the accusations first about a year ago that Andy Colson, who was the former editor of the News of the World and also the former press secretary of the British prime minister David Cameron, not just knew about the fact that phone tapping went on, but also approved of it and actually encouraged his journalists to undertake that in the pursuit of getting, you know, exclusives.
He also gave that interview to "The New York Times" last week, saying the News of the World journalists also had access to sensitive police technology called pinging, in which police can find the location of individuals they are looking for through their mobile phone signals. He accused the police of doing that in exchange for cash payments from News of the World.
He's been found dead now in his home in the southern part of the England, Brooke.
BALDWIN: Well, we would be remiss to also talk media mogul here, Rupert Murdoch, in the hot seat tomorrow, getting ready to answer some tough questions from the MPs, members of Parliament. What should we expect from that testimony?
CHANCE: Well, it clearly going to be big office, isn't it, seeing the head of the one of the world's biggest media organizations being scrutinized and cross-examined by members of the British Parliament. They're going to ask him what he knew, of course, about the phone hacking scandal. How much he was aware that his executives were getting up to in their pursuit of exclusives in this way.
And he's obviously going to be put on the spot a great deal by these parliamentarians to try to get the kind of answers that they're looking for and the country is looking for at this stage in a scandal that has really rocked the establishment. Remember, in the course of the past 24 hours, two of the most senior police officers in Britain, certainly the top two at the metropolitan police in London, have resigned their posts because of how they were implicated and the allegations against them in this phone tapping scandal.
BALDWIN: What a stunning story you're covering there from your perch in London. Matthew Chance, thank you.
Just want to remind all of you, this testimony Matthew's just speaking about happens tomorrow morning. The Rupert Murdoch testimony starts right around 9:30 Eastern time. CNN will be all over it.
Next here on "Reporter Roulette," Alison Kosik in New York. Alison, the clock, as we keep mentioning over and over. I think everyone knows by now, the deadline, August 2 on this debt deal. House Republicans are going to be voting, though, tomorrow on this plan to balance the federal budget. How if at all would that will be affecting stocks?
ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Today for the first time, it really did affect stocks. Investors, you know, they've been pretty passe, Brooke, about it until now. But now they're getting nervous. You saw it in how the market did today. There was a sell-off on the Dow. There was a huge rush to buy gold. We're watching the Vix that tracks fear and volatility on Wall Street. That jumped. And yes, that August 2 deadline getting closer.
President Obama says a deal has to be agreed to by this Friday to get through Congress in time. Yes, investors are taking notice as of today, Brooke.
BALDWIN: So stocks being affected there. Also affected, borders bookstore. They're having problems. I was just buying in a Borders the other day buying that book "The Help." But I guess too many ereaders out there, huh?
KOSIK: Yes, you know, enjoy it while you can. Reports are saying Borders has announced it's closing another 399 stores. It's liquidating and closing those stories. You know, it's going to take a financial miracle to keep this company afloat. A bidding deadline yesterday passed with no offers. So, now the steps toward liquidation are expected to happen this week.
And you hit the nail right on the head there. It's been a tough time competing for Borders against Barnes & Noble and amazon.com as consumers go digital. You know, Borders was late to the game. Ever hear of Nakobo?
BALDWIN: No.
KOSIK: Exactly, that's the problem. I mean, that's exactly the problem. Amazon came out with its Kindle. Barnes & noble came out with its Nook. So you know, Borders was late to the game, and it was hard for them to make back what they lost. You know, one analyst puts it this way. He says it's going to be a sad day in book publishing history when Borders goes away.
It really is sad. I just love going there and just thumbing through the books. No more of that. At least not at Borders.
BALDWIN: I know. Rainy Sunday at Borders, Barnes & Noble. Alison Kosik, thank you very much.
KOSIK: No more.
BALDWIN: Next on "Reporter Roulette," Elizabeth Cohen with what you need to know before you buy those shoes, the special toning shoes. Have you heard of these? They supposedly help you get in shape. Elizabeth?
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Brooke, I bet you've seen the ads for these. These sneakers that have a rounded bottom, and the people who make them claim they help tone your muscles, that they're generally a better workout than those plain old flat-bottom sneakers.
But lots of researchers are saying that is misleading. The folks at the American Council for Exercise, all sorts of other places, say you don't get a better workout with these sneakers. That the regular, traditional flat-bottom ones are just as good.
Here's a quote from the American Council on Exercise. "There's simply no evidence to support the claims that these shoes will help wearers exercise more intensely, burn more calories and improve muscle strength and tone."
As you might imagine, Brooke, the folks who make these round-bottom sneakers say they have several studies showing they're better than the other kind of sneakers and loads of testimonials from customers.
The bottom line here is if you like these round-bottom sneakers and you feel you're getting a better workout, that's fine. Go ahead and buy them. But they're not any better than the flat-bottomed sneakers. So, if you like the flat kind, go ahead and use them too. The trick is, just move. Brooke?
BALDWIN: I hate to ask you what my high heels are doing for me. Elizabeth Cohen, thank you very much. That's your "Reporter Roulette" for this Monday.
Casey Anthony, you know the story. She's vanished after walking out of jail. But how realistic is it to think that someone, i.e. Casey Anthony here, can just disappear? You're about to find out.
Also, get this. Apparently another jury is taking up her case. Yes, a judge set up a retrial. You've got to hear this one. Sunny Hostin is "On the Case." That's next.
(COMMERCIAL BREAK)
BALDWIN: It is a hung jury in the case of the Casey Anthony murder trial. No, no - I'm not exactly telling the truth here. We all know that wasn't the real verdict.
But when a church in Cleveland, Ohio did its own retail yesterday, that's what the jurors came up with. I say "jurors" because they're not real. Listen to this.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I felt like if she didn't murder her child in her own hand, she played a part in that. So, she's guilty by association. So, that's why I voted guilty for her.
UNIDENTIFIED FEMALE: We really don't Know. Only she knows if she do know and God knows.
(END VIDEO CLIP)
BALDWIN: We just couldn't get over that. So we had to share that, Sunny Hostin. The fact that people are still so much so, you know, infatuated with, talking about, dissecting this story, right? Quickly, what's your reaction to that?
SUNNY HOSTIN, LEGAL CONTRIBUTOR, TRUTV: You know, I'm just -- I'm not surprised that this jury came up with a different result, because that's what's happening all over the country. A lot of people are talking about this case, Brooke, and I think people are on both sides. Some people agree with this verdict. They think wow, that could have happened if I was on the jury and there are others who say of course not, she was guilty. And I would have voted to convict.
So, I think it's really representative of what's going on in the country.
BALDWIN: Still part of the watercooler discussion. But let's talk about her whereabouts. We know that her attorneys aren't saying very much about where she is for her own safety. One of them, Cheney Mason, told "The Today Show" that she's safe and that quote, unquote "elaborate plans were made to protect her from people with a lynch-mob mentality."
So, she's going to the to start over somewhere, but is that even possible in this day and age with, you know, cell phones and cameras and all that, you know, capacity. Can you just disappear?
HOSTIN: And that's the question on everyone's minds, right? Can you perform one of those disappearing acts in today's age?
And I spent the weekend talking to a lot of people in law enforcement, former prosecutors like myself. And across the board, Brooke, they all thought that it was possible. They, you know, cited James "Whitey" Bulger. They said he hid from the FBI for 16 years. Kind of hid in plain sight. Many people have told me there are about a million fugitives all over the country hiding.
So, it's certainly possible to hide. But I will tell you this, I've been told the best way to do it, sever all ties from everyone and everything in your past. We know that Casey Anthony so far has done that, right? She hasn't visited her parents, she hasn't spoken to them.
And the other key ingredient, Brooke, a lot of my sources talked to me about is money. You need money. And if you have a lot of it, you can hide for a pretty long time. And how much money does Casey Anthony really have -
BALDWIN: She doesn't have much, right?
HOSTIN: -- because she left the jail with about $500. That's why I think so many people are saying we're going to see a book come from her. We're going to see a television interview, a paid television interview.
And I think even then, people are telling me she can still hide because a lot of publishers will keep her identity secret, her location secret even if we hear from her. Is it possible to hide? I think so.
BALDWIN: Maybe she'll become a blond Casey Anthony. Who knows how one could change their appearance to disappear? Speaking of money, we're getting some new information, Sunny, how many did this trial actually cost the taxpayers? Dare I ask how much?
HOSTIN: That's right, the cost of justice, right? We're finding out the cost of the trial is being financed by four different agencies, Brooke. That's the state attorney, the Justice Administrative Commission, the sheriff's office, and Court Administration.
We've confirmed that the prosecution's costs add up to $91,000. Of course, that does not include the salaries and the investigation cost. My understanding is the investigative costs could have been hundreds of thousands of dollars.
The big ticket item, Brooke, the cost of transporting, feeding and housing the jurors. That comes from the Court Administration's budget. Get this, $182,184.48. That was the big ticket item, the jurors.
BALDWIN: That's what happens when you have to pluck men and women from an entirely different city to try to get an unbiased look at this woman.
HOSTIN: And keep them housed and fed and happy.
BALDWIN: Sunny Hostin, thank you so much, on the case as always for us. And maybe you were watching this match yesterday. I was coming back from vacation in the plane. I read all about it.
You heard how the women's U.S. soccer team lost the World Cup and the nail biting final moments, but here's what you may not have heard. The dramatic story behind the winning team including how one of those Japanese players raced to save her country during the devastating earthquake just a couple of months ago. You've got hear this next.
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BALDWIN: You might have watched. You might have been biting your nails over this one. Japan beat the U.S. in the Women's World Cup match just yesterday. It was an amazing victory for a country that's gone through so much this year. That is what's trending today. Kyung Lah takes a look at what this means for the Japanese.
(BEGIN VIDEOTAPE)
KYUNG LAH, CNN INTERNATIONAL CORRESPONDENT (voice-over): From the urban sports bars of Tokyo, to the gymnasiums of rural Japan, the sound, the same, jubilation. A team of underdogs against a team they lost to 25 times.
More than a sports team, they carry the prayers and hopes of after badly damaged nation, moved to tears as they watched. I think we witnessed something historic says this fan. I was so moved.
(on camera): Hours after that incredible win, the game is being replayed across Tokyo. It's not just soccer fans, but an entire country desperately in need of a feel good moment and some heroes.
(voice-over): Coming four months after the tsunami, Japan continues to re-open the disaster. Fukishima nuclear plant remains a crisis still spewing radiation and months away from a cold shutdown.
Japan's economy has struggled in the wake of the epic disaster. The lawmakers locked in partisan bickering and trying to oust the prime minister. While in the tsunami zone, nearly a hundred thousand remain in evacuation centers and temporary housing with years of rebuilding ahead.
This game happened at the right time for us, says this tsunami victim. This victory gives us the strength to keep going. The morning papers for once blared upbeat news, snatched up by eager readers.
There's been so much bad news from Japan, says this commuter. This is good news and encourages us. The sports world is already calling the women's team the comeback kids for how they refuse to yield in the World Cup, but to their home nation they're a potent symbol, a reminder to never give up. Kyung Lah, CNN, Tokyo.
(END VIDEOTAPE)
BALDWIN: What a match. I know Wolf Blitzer is watching. Wolf Blitzer, I know we're supposed to talk about what you have on "THE SITUATION ROOM," but I understand you were tweeting for the whole thing yesterday.
WOLF BLITZER, THE SITUATION ROOM: I was tweeting. I just saw your tweet, by the way, you just said you were -- somebody had to win. You hoped the United States would win, but if somebody had to win, it was Japan, given what they've gone through, that was a very nice tweet.
I was hoping, of course, the USA would win, those women were amazing, but I congratulated Japan as soon as they won. It was a great game. If you liked soccer -- I was never a huge soccer fan, but increasingly I've come around to enjoy it. It was really, really exciting. I thought the American women had it. They had so many opportunities in the first 10, 15 minutes.
BALDWIN: It was the very end, the very end.
BLITZER: Really, yes, so my heart goes out to all those young ladies. But, you know what, that's part of life, what can you say.
BALDWIN: It sounds like there's a quick media availability to talk to some of the USA gals right around your show time tomorrow.
BLITZER: I think Hope Solo belongs in "THE SITUATION ROOM." What do you think?
BALDWIN: I think Abby does as well.
BLITZER: Yes, she knows how to do all that.
BALDWIN: Anyway, soccer aside, Mr. Blitzer, what do you have coming up?
BLITZER: Let me tell you who's going to be in "THE SITUATION ROOM" today, Elizabeth Warren. You know, she created this Consumer Protection Agency that the president nominated someone else to head today. She was there. She's going back to Harvard Law School.
We're going to talk to her about what's going on. A lot of Republicans don't like this agency. They think it's way, way too powerful. It's going to kill jobs. So there's good stuff to talk about with Elizabeth Warren.
Now we have a really good debate between a very liberal Democrat, conservative Republican, key members of the House on what to do about this debt ceiling. I think there's going to be movement this week.
Finally, Brooke, I don't know if you go to the ccnn.com/situation room blog, do you ever go there, Brooke? Are you paying attention?
BALDWIN: I am paying attention. My microphone was not open.
BLITZER: I was asking you, do you ever go to my blog?
BALDWIN: I do. Do you ever go to mine?
BLITZER: Of course, so let me tell you, go to the blog today. I've got a really good little bog about the $33 billion in Libyan assets that the United States government has frozen now that the U.S. has recognized the rebels as the governing authority of Libya.
They're going to start handing over some of that $33 billion, all of it eventually to the Libyan rebels. They'll buy arms. They'll buy spare parts. They'll use it for whatever they want.
But here's the question, the U.S. taxpayers already spent about a billion dollars helping to liberate the Libyans from Gadhafi. Should we deduct a billion dollars from the $33 billion before we hand over those frozen assets to the Libyans because we helped them liberate their country? What do you think?
BALDWIN: That's a lot of billions to be talking about. We're talking trillions of the national debt and some people don't have a hard time feeling hundreds or thousands, but we'll look for that, cnn.com/situationroom. Wolf Blitzer, we're all over it. Thank you so much.
Meantime, this is one of the stories Wolf just mentioned here. You know, the president picks Elizabeth Warren to create this agency, right, to help consumers.
We're getting some new developments also in the attempted robbery at a congressman's home. He was home so was his grandson. Joe Johns has the scoop, that's next.
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BALDWIN: So the president has named his pick to run the Consumer Financial Protection Bureau and it looks like he's choosing his battles very carefully here. Joe Johns is here with the "Political Pop." Joe, what do we have?
JOE JOHNS, CNN SENIOR CORRESPONDENT: Hi, Brooke. The president's nominee is getting his first, but hopefully not his last mention on "Political Pop." His name is Richard Cordray known to many as a former Ohio attorney general.
But in spite of that, this guy on paper at least is a somewhat colorful character. In fact, if you think you've heard his name, maybe it's because you like to watch TV game shows. Cordray is a five-time champion on "Jeopardy." Check out what the president said about him.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: Last but not least, back in the '80s, Richard was also a five-time "Jeopardy" champion and a semi-finalist in the tournament of champions. Not too shabby. That's why all his answers at his confirmations will be in the form of a question. That's a joke.
(END VIDEO CLIP)
BALDWIN: Thanks for clarifying, Mr. President.
JOHNS: Well, smart guys in the Capitol Hill.
BALDWIN: OK, so smart guy, "Jeopardy" champion, et cetera, but at the same time, the president is getting slammed for not choosing Elizabeth Warren for the job. JOHNS: Right, right. You know, this is a person who's seen as a lightning rod because there are a lot of people on the right who think they got burned by having her as the overseer of the troubled asset relief fund.
On the other hand, there are some Democrats who really love her. But at the end of the day, the president looked at and said I'll probably not be able to get this person through without a fight. That's the bottom line, election year politics.
BALDWIN: Wolf is going to have more on that in "THE SITUATION ROOM." Meantime, less than a minute, tell me about this congresswoman from Iowa who faced down an armed intruder at home.
JOHNS: Yes, it's a fascinating story. It's all about the wrong congressman to mess with if you will. Leonard Boswell is from Iowa. He has been in Congress for a long time. Before that, he was in the military, got two distinguished flying crosses, two bronze stars.
Went to Artillery officer candidates school, two tours as an assault helicopter pilot in Vietnam so somebody who knows a little bit about defending themselves. Anyway, armed introducer comes in and daughter screams, congressman grabs the gun, his son points a shot gun at the bad guy, bad guy runs off.
BALDWIN: Yes, bad guy away. Not the guy to mess with as you mentioned. Joe Johns, thank you so much.
Good to see you for our Political Pop, as always.
That's it for me.
Now to Wolf Blitzer.
THE SITUATION ROOM starts right now.
