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Obama Calls for Debt Compromise; GOP: Congress Won't Give Blank Check; Breivik "Surprised" He Pulled it Off; Norway Suspect's Father Speaks; Beck: Norway Camp "Disturbing"; Mauling Victim Hits Bear in Nose; Soldier Saves People in Bus Crash; Congressman at Center of Sex Scandal; Chappelle Sorry for "Bad Attitude"
Aired July 26, 2011 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
PHILLIPS: And it's 10:00 a.m. on the East Coast, 7:00 a.m. out West. I'm Kyra Phillips. Thanks for joining us.
The debt crisis and the deepening stalemate, President Obama reaches out to a new player in the game -- you.
Bad weather may be to blame for a military plane crash in southern Morocco. 78 people reported killed. It's not clear if there are civilians among those killed.
Congressman David Wu will not seek re-election after being tainted by a sex scandal. The Oregon Democrat is accused of making sexual advances toward a teenager.
We begin this hour with the debt crisis, of course. Minute by minute, the nation inches closer to the brink of default and the countdown less than seven full days before the federal government could run out of money and be unable to pay its bills.
But in Washington, stark messages delivered in the duelling speeches by the president and the speaker of the House. Their parties are desperately divided. You and I are about to pay the praise.
We're covering all the angles of this story. Of course, Dan Lothian is at the White House. Kate Bolduan on the Hill. Dan, let's go and start with you. What is the president going to do today to push for a resolution?
DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: Well, I can tell you according to a senior administration official that the conversation continues with members of Congress. Exactly what they are talking about, what potential deal would be out there is unclear at this point.
What we do know, at least publicly, Democrats have been unwilling to embrace what Republicans are pushing. Republicans, unwilling to embrace what Democrats are pushing, but the White House nonetheless remains optimistic.
That senior administration official is saying that they hope that, quote, "sanity will prevail." But as you pointed out, the time is running out here. It's unclear what can actually get done in time for that August 2nd deadline, Kyra.
PHILLIPS: All right, and Kate, you know, a growing sense of urgency from the public, are you getting the same feeling there on the Hill?
KATE BOLDUAN, CNN CONGRESSIONAL CORRESPONDENT: I would say absolutely yes. I talked to a couple of lawmakers, Democrat and Republican and both of them expressed, really, amazement that they could not believe that we've gotten this close to the deadline.
They said despite all that they know in their years in Congress. They couldn't believe that we've gotten this close to the deadline. They say there's definitely a sense of urgency.
And on that point, House Speaker John Boehner, he's put forth that bill. They posted that bill, which puts that bill on track for a vote in the House tomorrow, Wednesday. On the flip side and the other side of the capital, Harry Reid, the Senate Majority Leader, Democratic Leader Harry Reid, his bill is still out there, but it's unclear when that vote could see a vote.
I'll tell you, Kyra. There seems to be a desire to allow the House vote to happen on the Boehner bill before they move in the Senate on this bill put forth by Harry Reid. But again, we're not talking about a lot of time left.
PHILLIPS: Yes, six days to go. Kate, Dan, thanks so much, guys.
Let's go from the politics to the pain, shall we? We could be days away from feeling the first impact on our wallets. Ali Velshi, when are we going to be in trouble? When should we be truly worried? You've said you'll let us know.
ALI VELSHI, CNN CHIEF BUSINESS CORRESPONDENT: You will see alarm bells going off on my head when it happens. Here I'm going to use a hurricane analogy with you, Kyra. You know, sometimes they say these that the 30 percent chance or 40 percent chance that hurricane could hit. That's kind of what this is.
But if there's a 30 percent or 40 percent chance a hurricane can hit, you want to buy some plywood, you have some water and you want to know your escape route. That's what you want to know here. So you want to know what to do if it starts to get serious.
I'm watching markets right now. They're waiting. They're not really committed to fear at the moment. They think, as Kate just said and Dan just said, you know, the smart people in the room seem to think a deal is going to get done.
The problem is, there are a whole bunch of people who quite clearly, Kyra, American legislators, who do not seem to have a full understanding of the implications of letting this debt limit lapse. I'll tell you what they are.
I take you back in 2008 when Lehman Brothers collapsed and everybody in the room, smart people, thought you know what? The markets will absorb it. This is a lot bigger than Lehman Brothers collapsing.
Now who knows what's going to happen, but here are your possibilities. Number one, the stock market, I'll see it happening. The stock market will start to drop precipitously. If our markets are closed, it will happen in Europe or Asia.
Number two, we'll get that debt downgrade. We know that's going to happen. If we don't upgrade the debt limit, it might even happen otherwise. So what that causes is the cost of borrowing to potentially go up. That's borrowing for our government. That's also borrowing for home loans.
That means if you have an adjustable mortgage rate, it could go up. It could be more expensive to get a car loan, a student loan. By the way, if mortgages become more expensive, we already have -- we just got numbers this morning to show a little bit of a housing price recovery. Mortgage price rates start to go up, that could bring that down.
Here's another one to consider and this is probably, in my mind, this is the biggest one, Kyra, companies could find it more expensive to borrow. When companies run short of money or can't borrow what they want or it costs them more, what's the easiest thing that companies can cut, Kyra? It's jobs. We can't afford that right now.
So, I wouldn't be gambling with this. If I were on Capitol Hill, I would sit there and say I don't know which way it's going to go, I don't want to be on the wrong side of history.
PHILLIPS: Yes, amen. Ali, thanks. Stay with CNN for continuing coverage of the debt crisis and the deadline that grows more and more on this. At the bottom of the hour, we're going to check in on Wall Street's reaction.
Norway attack suspect is, quote, "a little bit surprised he was able to pull it off and wasn't killed doing it." That's according to his lawyer, actually.
Anders Breivik says that -- or his lawyer says he still needs to undergo psychiatric testing, but that everything about this case, quote, "indicates that he's insane."
Breivik's father thinks he's mentally ill and has pretty much disowned him now.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE (through translator): No, I'll never have more contact with him in my darkest moments. I think that rather than killing all those people, he should have taken his own life.
UNIDENTIFIED FEMALE: Those are strong words from a father.
UNIDENTIFIED MALE: They are, but thinking about what has happened, I get so upset and I still don't understand that something like this could happen. No normal human being would do something like that.
(END VIDEO CLIP)
PHILLIPS: Just adding to the fire here, Glenn Beck is weighing in on the Norway tragedy. He's criticizing the culprit and the camp that he attacked. Zain Verjee joining us once again from London. What he's saying is getting a lot of people upset, Zain.
ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: It sure is, Kyra. He is comparing the summer camp where kids died on Utoya Island in Norway to the Hitler youth in Germany. Listen to exactly how he put it on his radio show.
(BEGIN VIDEO CLIP)
GLENN BECK, CONSERVATIVE COMMENTATOR: As the thing started to unfold and then there was a shooting at a political camp, which sounds a little like, you know, the Hitler youth or whatever. I mean, who does a camp for kids that's all about politics? Disturbing.
(END VIDEO CLIP)
VERJEE: It's strange that he would actually say that, Kyra, because there are quite a few politically oriented camps in the U.S. by the Nine-12 Project, which is actually an organization founded by Glenn Beck himself back in 2009.
People are make comments on cnn.com. Here is just a couple to give you a flavor. One says, he is a disgusting guy who lies constantly. He calls himself a conservative. That's not what conservatives stand for. Someone else writes, Kyra, what an utter, heartless, creepy thing to say.
PHILLIPS: And it's not the first time that Glenn Beck has referenced Hitler and the holocaust and gotten people pretty upset, Zain.
VERJEE: No. He tends to use it frequently. I mean, I was reading a "Washington Post" article that writes this, "For the first 18 months he was on Fox TV, he and his guests invoked Hitler 147 times." That article also says he used the word Nazi an additional 202 times. Kyra.
PHILLIPS: Zain Verjee out of London. Zain, thanks.
When a bear attacked some teens in the Alaska wilderness, one of them just kicked it in the face.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Did it stand up?
UNIDENTIFIED MALE: Once. After it finished with one person, it stood up and looked for somebody else right in the middle, scare right in the middle of the face.
(END VIDEO CLIP)
PHILLIPS: We're going to tell you what else the teens are saying as we go cross country.
And seven-term Oregon congressman, accusations of an inappropriate sexual encounter, now he says he won't run in the next election.
(COMMERCIAL BREAK)
PHILLIPS: Checking stories "Cross Country," the teen says he just whacked the bear in the face. It happened during a 30-day survival course in Alaska.
The instructors had left the teens in the wilderness all by themselves. Well, Victor Martin says when the bear attacked his buddy, he came to the rescue.
(BEGIN VIDEO CLIP)
VICTOR MARTIN, BEAR ATTACK SURVIVOR: Right in the middle, square, right in the middle in the middle of the face. It was terrifying, but prayer helps.
(END VIDEO CLIP)
PHILLIPS: And in Florida, a group of fishermen have caught a massive shark, 650 pounds. It took them more than 2- 1/2 hours to reel in the 13 footer.
We expect our soldiers to be heroes, but listen to this one. This guy pulled passengers from a burning bus after it crashed into a tractor trailer in upstate New York. Sergeant Jacob Perkins was on leave and driving home when he spotted the two vehicles on fire.
(BEGIN VIDEO CLIP)
SGT. JACOB PERKINS, U.S. ARMY: My natural reaction was just to go straight on to the bus and make sure everybody was off. I'm just glad that the military had me trained and prepared for this situation.
(END VIDEO CLIP)
PHILLIPS: The driver of the tractor-trailer was killed. More than 30 people on that bus were injured.
Democratic Congressman David Wu is facing allegations that he made sexual advances toward an 18-year-old that is not the first sign of trouble for Wu. CNN's Brian Todd has the details.
(BEGIN VIDEOTAPE)
BRIAN TODD, CNN CORRESPONDENT (voice-over): An embattled congressman sees his own party's support quickly slipping away over alleged sexual misconduct. David Wu of Oregon faces a possible House Ethics investigation requested by fellow Democrat House Minority Leader Nancy Pelosi. He's also fighting off call toes resign.
This after a report in "The Oregonian" newspaper saying a young woman had called Wu's office in the spring accusing him of aggressive and unwanted sexual behavior. Jessica Brady has been reporting on Wu's troubles all year for the newspaper "Roll Call."
JESSICA BRADY, ROLL CALL NEWSPAPER: We know that she is about 18 years old. That she called Mr. Wu's congressional office back in the state. Sounded very distraught on the phone and said that she was the subject of an unwanted sexual encounter of him. She's the daughter of one of his old college friends and a campaign donor.
TODD: "The Oregonian" reports that according to an unnamed member of his staff, when he was confronted by his aides, Wu admitted to a sexual encounter, but said it was consensual. Despite our repeated attempts, Wu's aides said he didn't want to speak to us on camera.
He did issue a statement saying this is very serious and I have absolutely no desire to bring unwanted publicity, attention is or stress to a young woman and her family.
(on camera): This is only the latest twist in a pattern of behavior for Congressman Wu. Earlier this year, he admitted that he sought medical help after some strange behavior during his re-election campaign last fall, but he said was brought on by the stress of being a single parent and the death of his father.
(voice-over): Back in fall, he sent this picture of himself in a tiger costume to his staff. He reportedly said it was around Halloween and he was joking with his kids.
But a report in "The Oregonian" citing anonymous sources within Wu's congressional office and his re-election campaign said his staff became so concerned with what they described as his erratic behavior in public and private that they urged him to seek psychiatric treatment. The paper says he refused.
(on camera): How toxic is he right now for the Democrats?
MARK PRESTON, CNN SENIOR POLITICAL DIRECTOR: They moved very quickly, which just goes to show you they're trying to distance themselves from Wu.
Look, they remember what happened with Anthony Weiner. Just about a month ago when that dragged out and it was really a drag down on Democrats, they want to cut this off as quickly as possible.
TODD (voice-over): Although Congressman Wu has so far resisted calls to resign, there are reports that he won't run for re-election next year. Brian Todd, CNN, Washington.
(END VIDEOTAPE) PHILLIPS: And David Wu's office has now confirmed to CNN that he will not seek re-election.
Peter Bhatia, the editor of "The Oregonian." Peter, you've actually been on top of this story from the very beginning. Tell us about Congressman Wu's reputation before these allegations surfaced.
PETER BHATIA, EDITOR, THE OREGONIAN: Good morning. Nice to be with you. Congressman Wu has, of course, been in office for some time, seven terms, and is well known to people here in Portland. He's always been a bit of a character.
His issues have not necessarily been in the mainstream. He cares deeply about technology and has been outspoken on issues involving China, of course, because he was the first Chinese-American elected to Congress.
But I think in general, people here -- he's in a pretty safe Democratic district. The Republicans haven't mounted particularly effective candidates to oppose him and he's coasted to re-election.
People here generally like David Wu, I think, but I don't think anybody would tell you he's the most effective congressman that's ever represented the Portland metropolitan area.
PHILLIPS: Well, members of his staff have even expressed concern over what they would call erratic behavior. I mean, Wu himself admitted that he's gone into mental health counseling. Do you think ice likely that he'll resign?
BHATIA: Well, we're reporting this morning that he's at least hinted to senior members of the House minority that he might consider resigning. I think David Wu is a survivor. He has been.
He's been through a lot, certainly, personally and on some level professionally. I know him fairly well. I certainly don't want to try to get inside his head.
I think he would like to ride it out to the end of his term, but as we just reported, the pressure certainly is building on him, both from the local Democratic establishment here in Oregon and certainly from the House minority leadership.
PHILLIPS: "The Oregonian's" Peter Bhatia. Peter, thanks so much for joining us today.
BHATIA: Sure. My pleasure. Great to be with you.
PHILLIPS: Likewise.
Straight ahead, comedian Dave Chappelle, he balled so badly, he quit telling jokes and just started texting. We'll have details from a first person's account, someone who was actually there.
(COMMERCIAL BREAK) PHILLIPS: The stand up comedian Dave Chappelle is apologizing for a pretty bizarre performance last Friday. He was on stage at a charity event when apparently hecklers started rattling him, rattling him so much that he barely cracked a joke the entire set.
A.J. Hammer, host of "SHOWBIZ TONIGHT" HLN here to tell us exactly what happened. What was going on, A.J.?
A.J. HAMMER, "SHOWBIZ TONIGHT" HOST: First of all, Kyra, I'm one of those people who get really annoyed if you start texting at the dinner table.
Imagine if you get to a comedy show and the comedian starts texting and that's what was going on. We're also talking about - it's unacceptable. A lot of long, awkward silences during what was supposed to be this performance not a whole lot of laughs.
And Chappelle has now publicly apologized for his performance or lack of performance. You probably remember Dave Chappelle from a short-lived show on Comedy Central. I want to take a look a clip of Chappelle in action right now.
(BEGIN VIDEO CLIP)
DAVID CHAPPELLE, COMEDIAN: I study white people, following you around grocery stores. They freak out. I try to peek in the car. They always say, get away from my car. What are you looking at? Chicken and gibblets are over there! You must be lost. These are vegetables.
(END VIDEO CLIP)
HAMMER: Now, that was from a comedy special. Chappelle's TV show wasn't just edgy, it was outrageous. It was a huge hit. But, of course, you probably know the story.
At the height of its popularity, Chappelle decided he didn't want to do it anymore. We walked away from the show and a reported $50 million contract.
People are speculating it had to do with drugs or a nervous breakdown. Dave said he just didn't like doing the show any more and it was ruining his (INAUDIBLE), which he felt was more important to him.
Kyra, I understand one of CNN's own was right there on the scene tweeting a play by play during Chappelle's bizarre performance on Friday.
PHILLIPS: Do we expect anything less, A.J? Stay with me. Our Roland Martin was there. Roland, you know, you're a fan of Dave Chappelle. I loved his show, never miss that episode the guy is hysterical. So what the heck happened? Because this doesn't -- it's not like him.
ROLAND MARTIN, CNN CONTRIBUTOR: First of all, this was a comedy show that featured about seven comedians at (INAUDIBLE) with the annual charity event of Alonzo Morning, a former NBA all-star with the Miami Heat. He's been doing this for 15 years.
And so when Dave came out, thunderous applause, standing ovation from the audience then he had people who were yelling, Dave, we love you, we love you, and at one point, Dave was like, man, can you guys stop talking back to the stage?
Then there were some people in the first three rows who began to heckle him to some degree. People were hollering, do Rick James. He was like, look, go buy the DVD. Other people were just saying all the kind of stuff.
And in talking with him the next day, in talking with his folks that night, even other comedians, they said that he can't stand heckling. He doesn't like when people are trying to get involved in the middle of the show.
So he pretty much shut down. So he started saying, this going to be a war (INAUDIBLE). People were videotaping, he's texting. I mean, clearly he apologized for it. He said he had a bad attitude.
But also from the audience standpoint, they should have been more respectful and let the man do his work. I thought he would have simply, like the other comedians, dogged them like crazy and move on. He didn't.
PHILLIPS: Well, Roland, let me ask you, did you have a chance to ask him? I mean, were you up front with him because A.J. brings up a good point.
Remember when he took a break from the show, he was offered a big deal and he didn't take it. There was talk that possibly he was dealing with some type of addiction --
MARTIN: No.
PHILLIPS: But there was more talk about maybe a nervous breakdown. Did you ask him, what's the deal?
MARTIN: First of all, we can talk about what happened six years ago. You know, he's been looking at stepping back on to the stage after six years. He's been away for quite some time. Look, the guy wasn't high. He wasn't drunk. He wasn't having a nervous breakdown.
PHILLIPS: You asked him that?
MARTIN: First of all, I asked him that. I talked to the other comedian. I talked to the folks that were there. The guy was ticked off. That's what he was.
I mean, again, in the middle of the show, he said this is going to be a war of wills. I have nothing but time. So he was just upset with the folks there. You know, a lot of comedians don't like people taping their work because other comedians steal jokes and stuff.
I think he recognized in retrospect that he could have handled it a different way, but that's what it was. It was soared of weird and then went on literally. He was on stage for about 40 or 50 minutes.
When the DJ begin to play a little music and the DJ really didn't want to do it that's when he stopped. He came up the next night, when they have the gala on Saturday night, he introduced Celo Green, cracked a few jokes, referenced, of course, what took place on Friday night.
And he plays on the 14th if a couple of weeks. He's setting a whole new routine. So hopefully the performance in a couple of weeks, folks will have an opportunity to hear it.
Dave Chappelle, everyone knows and loves. But having talked to me in the middle of the set about what I'm covering on CNN. I was like, I'm not trying to talk, dude. Tell us some jokes.
PHILLIPS: Come on, Ro, you always like a little publicity.
MARTIN: I was like -- let's hear some jokes, though.
PHILLIPS: Take me to the show next time because I'd love to see it live.
MARTIN: No problem. No, you're too loud. You're too loud.
PHILLIPS: I might get in trouble. Thanks, Roland for Skyping in.
All right, well, a pack is buying ad time in Iowa to drum up write-in votes for Texas Governor Rick Perry in the upcoming straw poll. So are the drum beats going to get loud enough to just get him to jump in the race. We're going to be talking about that.
And also just don't forget, if you're walking away from the TV, it doesn't mean you could - you have to stop watching us. You can actually takes us with you.
You can actually get CNN streaming live on your phone, your computer or your iPad. Check it out, cnn.com/video or just download our new app and of course, there's a little bit of delay here on the iPad. But look, refresh the app. You go up here to the live peg on the web site and there you go. You can take us with you and keep watching, no matter where you are. We'll be right back.
(COMMERCIAL BREAK)
PHILLIPS: All right, checking top stories now.
The clock keeps ticking towards possible disaster, are we in the right spot here? OK, all right, we're going to have lights, just checking.
Last night, President Obama and House Speaker John Boehner gave different views of the dispute over raising the nation's debt limit. The deadline for raising that debt ceiling, August 2nd.
Democratic Oregon Congressman David Wu says he will not run for re-election next year. That comes as he faces questions in his district about an alleged sex scandal. The 18-year-old daughter of a campaign fundraiser is accusing Wu of making sexual advances.
For all of you football fans, the game is back. Players are expected to begin head to go practice fields across the country today. The players approved a 10-year deal with team owners yesterday that ended a four-month lockout.
All right, "Political Buzz," your rapid fire look at the hottest political topics of the day, three questions, 20 seconds on the clock.
And playing today's Democratic strategist, Robert Zimmerman, senior political columnist at "Newsweek" and "The Daily Beast," John Avlon and Will Cain, CNN contributor and host of the internet radio show, "Cain and Fable."
All right, guys, first question, President Obama makes a prime time appearance trying to put John Boehner on the defensive. Did it work and are we any closer to a deal? I think I know the answer to this from all of you. Robert.
ROBERT ZIMMERMAN, MEMBER, DEMOCRATIC NATIONAL COMMITTEE: Yes. Of course we're going to have a deal. And while the president gave a fine speech last night, the problem is it was a month too late. Because the only issue on the table now is whether we have a long-term solution or the Republicans have their way and provide a solution that puts our full faith and credit of the United States in the middle of an election cycle.
McConnell and the candidates said they were opposed to that. Now they seem to be for it. That's really putting party first and the country second.
(BUZZER SOUNDS)
PHILLIPS: Will?
WILL CAIN, CNN CONTRIBUTOR: You know, Kyra, the president has been reduced to cheering from the bench of his own team. You, judging from the speech on Friday and then again last night, it seems like he's bought the hype that he's the only adult in the room. He's kind of adopted this tone of condescension, which I think he's actually contributing to the drawing of the sides.
So, he's out. Now we have Reid and Boehner working on their own plans. I suspect they'll get a deal done.
PHILLIPS: John?
JOHN AVLON, CNN CONTRIBUTOR: No, I don't think we should assume a deal will get done. Right now, we have competing partisan plans being presented at the eleventh hour and no obvious path towards constructive compromise. The president is trying to lead, but right now, the terrible thing is the plans being put forward don't even deal with the deficit and the debt in any meaningful way. That's just hypocrisy and a lost opportunity.
PHILLIPS: All right, guys. Subject number two, a PAC buying radio ads in Iowa urging people to write Rick Perry's name on to the Iowa straw poll ballot. When will Rick Perry stop the madness and just jump into the race already? Will?
CAIN: Kyra, there's this Web site called InTarde that allows people to bet on future events. And it suggests Rick Perry has a 33 percent chance to win the GOP nomination. And it's the highest of any of the Republican candidates. And this site has a pretty good history. So, I would say his strategy right now of slowing playing it is working out for him.
PHILLIPS: Robert?
ZIMMERMAN: Kyra, it's only madness if you're a political consultant trying to get a job with this guy. Or it's madness if you think a swaggering Texas governor who advocated withdrawing his state from the nation and has a $27 billion deficit is a credible candidate for president. That's madness.
PHILLIPS: Ooh, John?
AVLON: Now, now, he did not explicitly advocate seceding from the union. But Rick Perry is a flawed candidate, but he is a check- the-box favorite among conservative populists. And if he comes in, he will coalesce the far right on the Republican field. It will be a Romney-Perry race. I don't see how he doesn't get in at this point. How he can win a nomination is clearer than how he can win a general election, however.
PHILLIPS: All right, guys. Your Buzzer Beater now. Ten seconds each on this one. Oregon rep David Wu is accused of an unwanted sexual encounter with a teenager. He says he did nothing illegal. This seems worse than Anthony Weiner? Yes, no? Or should Democrats be trying harder to force him out?
Sorry about that. Go ahead, Robert.
CAIN: Who do you want to go, Kyra? Do you want me to go?!
(LAUGHTER)
PHILLIPS; I was just -- I was actually thinking about that for a minute going, OK, we don't want to talk about how bad something is. Both situations are pretty darn bad. So, I guess the bottom line is, should Democrats try harder to force him out because of what he's being accused of? Will, go.
CAIN: Yes. I'll say this. I don't think of Anthony Weiner any more, Kyra. I think of Dominique Strauss-Kahn. So, before we all jump to action and condemnation, let's make sure all the accusations are cool. PHILLIPS: All right. Robert.
ZIMMERMAN: Look, if any of these allegations of any credibility, I hope the police haul his butt out of the Congress and do an investigation. To the speaker - to Nancy Pelosi, the Democratic leader's credit, she is treating this like the Anthony Weiner's case, with an investigation -
(BUZZER SOUNDS)
ZIMMERMAN: -- and I am told from my own sources -
PHILLIPS: That's OK. Finish your thought.
ZIMMERMAN: -- others are calling for his oust.
PHILLIPS: OK. Senior Democrat is calling for his ouster. Robert, that's what you're saying your sources are telling you on this.
AVLON: Set your clock on the this -
PHILLIPS: OK, John, go.
AVLON: What, it's nine weeks. Another nine weeks, another sex scandal, we've got an endemic problem. But right now, the reason this isn't getting the attention is we don't have serial photographs coming out. Just one of him in a tiger suit, which is weird enough. When will the strangeness end?
(BUZZER SOUNDS)
PHILLIPS: Never. Strangeness will always continue when it comes to politics. I mean, look at you three! John, Robert, Will, thanks, guys.
(LAUGHTER)
PHILLIPS: I love you three. You know that.
All right, let's talk business, shall we? Allan Chernoff live at the New York Stock Exchange. Of course, following the market, wondering what's going to happen as these debt talks continue, Allan.
ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: Kyra, that's exactly the question everybody on Wall Street is confronting right now. For the moment, traders seem to be saying, you know what? We've seen this high wire act before, and we know it all turns out just fine at the end.
The question is, will it actually turn out okay? Even if Washington is able to raise the debt ceiling, will we be able to avoid a credit downgrade from the ratings agencies? That is a real threat, and it could become more of a factor as the week progresses.
Right now, the Dow Jones Industrial Average off about 78 points. Not a big deal. 3M is pulling the Dow lower. Wall Street is a little disappointed with one aspect of the earnings over that giant conglomerate. Earnings out of Japan were hit from the earthquake. Not a huge surprise over there. Also, U.P.S. is pulling the market lower. That stock down by five percent. 3M is off by four percent.
Kyra, one other very interesting note, the U.S. Treasury bond market is the market that really should be most responsive to this whole debt ceiling issue. Guess what? Right now, U.S. Treasury bonds are actually trading higher. Some analysts are telling me they're just stunned to see that happening right now. Very bizarre right now.
PHILLIPS: Down Industrials down 76 points. Allen, thanks.
Since the Norway terror attacks, search-and-rescue workers have been working around the clock. Only now are they coming to terms with what has happened.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I've been very concentrated about it work that we are doing and try to keep the -- my emotions a little bit away from in this.
(END VIDEO CLIP)
PHILLIPS: More from the rescuers right after the break.
(COMMERICAL BREAK)
PHILLIPS: All right. We're hearing from the lawyer and the father of the Norway shooting suspect. The attorney for Andres Breivik says the whole case suggests his client is insane. As for Breivik's 76-year-old father, a retired diplomat, he says he's sorry his son is still alive.
(BEGIN VIDEO CLIP)
JENZ BREIVIK, SUSPECT'S FATHER (through translator): No, I'll never have more contact with him, in my darkest moments. I think that rather than killing all those people, he should have taken his own life.
UNIDENTIFIED FEMALE: Those are strong words from a father.
BREIVIK: They are, but thinking about what has happened, I get so upset. And I still don't understand that something like this could happen. No normal human being would do something like that.
(END VIDEO CLIP)
PHILLIPS: As for the search-and-rescue workers, well, they are just not coming to grips about their feelings with regard to the attack. Here is CNN's Diana Magnay.
(BEGIN VIDEOTAPE) DIANA MAGNAY, CNN INTERNATIONAL CORRESPONDENT (voice-over): It's a painstaking task and a grim one, scouring the dark waters of this Norwegian field for the few still listed as missing and for clothes, shoes, anything belonging to those who met their death here. Tommy Odegaard has been leading the Red Cross' search operation since Friday evening.
(on camera): When did it begin to sink in, what had happened?
TOMMY ODEGAARD, RED CROSS: Well, I'm not sure if anything have -- things happened yet. I've been very concentrated about the work that we are doing and tried to keep the -- my emotions a little bit away from this. So maybe it will take some time until they -- they'll come.
MAGNAY (voice-over): Just across from the island, a family lays flowers for the dead. Rolf Lie tells me he's already heard enough about the twisted thinking of the man behind this massacre -- the hatred of immigrants and crusading mentality revealed in his manifesto and splashed across the world's press.
ROLF LIE, UTOEYA RESIDENT: His message should not be spread too much. It's not a good force. He wants the whole world to see and imagine his thoughts. And I think that's not the best way.
MAGNAY (on camera): What did you think when you read about his manifesto?
ODEGAARD: I was scared. I think this is Hitler Number Two.
MAGNAY: We're five minutes from Utoeya and we've just driven past this cutting (ph) which has graffiti on it saying things like, "White Power," "Die Black People" and a swastika. It does make you wonder.
Brevik acted out on his far right ideologies, but how many people in this society feel the same way as he does?
(voice-over): Odegaard has been too busy to watch the news or to read much about the killer.
ODEGAARD: Well, I guess other people knows a lot more of the circumstances, some things around this, than I do, because I haven't been watching any news at all. This is what we have been doing all weekend, searching for people.
MAGNAY: The police have revised the death count down from the 93 first feared dead and say they hope to finish their investigations here by sundown on Monday. But Norway, as a country, will long be searching for answers as to how this green and pleasant land could have bred such a monster.
Diana Magnay, CNN, near Utoeya, Norway.
(END VIDEOTAPE) PHILLIPS: Fighting back at cyber crime. A bit of education goes a long way. In three minutes, we're going to show you how young folks are learning how to battle those cyber bandits.
(COMMERCIAL BREAK)
PHILLIPS: Checking stories making news later today. Several Republican House and Senate members hold a news conference on the debt talks. That's in 30 minutes, 11:15 Eastern time.
And groups advocating for protecting the poor in those deficit budget talks hold a prayer vigil in Washington. That starts about 12:30 Eastern time.
And we expect to hear more on the debt during a White House briefing, 12:30 Eastern time.
Well, we've all been made aware of the dangers and difficulties of cyber crimes. But stopping them is difficult unless you know how. Our Ted Rowlands is at the University of Missouri in Columbia for the first day of a cyber challenge camp. So, Ted, what do you think? Is this a crash course in cyber security?
TED ROWLANDS, CNN CORRESPONDENT: Well, you know what? All these folks here have been invited here, Kyra, because they already have some knowledge. I've been listening in on the class, way over my head.
But these are the good guys and they are basically learning how to combat cyber crime and hackers which, of course, is a huge problem in this country and around the world. They're from around the country. Richard over there is from Colorado. Matt here is from Minnesota. Basically, these students have been invited here to take part in what is called the U.S. Cyber Challenge.
And they'll compete on Friday to see who get the furthest in terms of a hacking exercise. And part of the mentality is act like a hacker and you can defeat a hacker. Dr. Annie Sobel is not only a physician, but she used to be the director of homeland security in the state of New Mexico.
You know all about security. You're with the University of Missouri. Why is it so important to educate these young minds in the cyber defense field?
DR. ANNETTE SOBEL, UNIVERSITY OF MISSOURI: Well, there are a number of reasons. But first of all, these kids are the best of the best. They're very interested in applying their skills and talents to address U.S. national security problems. So, we want to train them and hone those skills so they can be part of the U.S. cyber security team. And that means governments, that means academia and that means private sector.
ROWLANDS: We've heard of hacking exercises lately at Sony and also the CIA and the U.S. government. This is a huge problem and a big concern, is it not? SOBEL: Absolutely. Computers are ubiquitous. They're part of everything we do, every activity in our life, whether it be our finances and banking, our water utilities, our day-to-day shopping at a major distributor. Everything we do is run by computers. And we're trying to train these individuals to do, like you said, and really look at potential problems before they occur.
ROWLANDS: And one of the things that they're doing, Kyra, is literally taking on the mindset of a hacker as they're going through the different exercises. And the best hacker at the end of the week, actually, wins a scholarship, if you will. And learning those skills helps, of course, combat the hackers, which is of course a huge problem around the world.
PHILLIPS: So, Ted, a question for you both. You know, in our business we always try to get hands-on internships. As I look at these kids and we hear right now that they're the best and the brightest, are departments like DHS keeping an eye on these students? Will they get a chance to move right into full-time jobs, to internships, to the hands-on experience with take what they're learning here right into, I guess, working for our security?
ROWLANDS: Absolutely. This is one of five camps going on this summer, and they've been doing it for years. And one of the things they're doing is looking for talent. And, Doctor, the best of the best get plucked up, don't they, by the United States.
SOBEL: Yes, they do. The reason these kids -- and I call them kids because they're all kids at heart. They're very innovative, they're playful and they know they have great jobs ahead of them.
ROWLANDS: And that's one of the other things. A lot of these great minds, Kyra, that go into computer technology, want to develop video games, things like that, are an attempt to push them into joining the team, if you will, the cyber defense team so that we can have the best and the brightest on our side against the hackers.
And these are the best and the brightest and believe me, sitting here for about 20 minutes, you realize that they're speaking another language.
PHILLIPS: Well, I know where your kids will be going to camp, Ted. Thanks a lot.
The Texas Rangers and their smoking hot bats. The Rangers had to put up at least three runs in each of the first innings last night against the Minnesota Twins. They added five in the fourth and four more in the fifth before tacking on two more in the later innings. Twenty-seven hits in all. This is the final score. And this is the final score 20-6.
Talk about being on fire. Check out John Kelly of the Detroit Tigers. Believe me, he doesn't run fast enough that his shoes can actually catch fire like that. The hot hijinks reportedly courtesy of their pitcher. Came between innings in Sunday's Tigers/Twins game. No harm, no foul, of course. Just a lot of laughs. And in Los Angeles, the city takes a step toward bringing back pro football after a 16-year absence. City officials unveiled a plan to build a football stadium near its downtown convention center. Now let's see if they can actually get a franchise teach to play there.
Move to downtown Detroit, get paid thousands of dollars. Of course, there's a few requirements, but that's the deal on the table for thousands of Motor City workers.
(COMMERCIAL BREAK)
PHILLIPS: Let's check stories "Cross Country."
Governor Jerry Brown has signed off on California's DREAM Act. The law makes it easier for undocumented student to get private financial aid. It's aimed at helping kids who were brought here illegally by their parents and had no stay in the matter.
He just called to say I love you. And I do. A California couple gets married over the phone. The groom's a combat medic in Afghanistan, and his fiancee, well, she just couldn't wait to tie the knot. So, they did it by proxy with his mom standing by as a witness.
And five Detroit companies offering employees $3,500 toward rent or $20,000 toward a mortgage. All they go to do: move downtown. It's part of a program meant to beef up the city's dwindling population.
It's sad and a shocking sign of the times. Take the net worth of a white family's stipend away, 95 percent of that value, and you get a glimpse of the wealth gap facing many minorities. Christine Romans takes a closer look.
(BEGIN VIDEOTAPE)
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Brand-new analysis from Pew Research shows the recession widened the racial wealth gap. so much so that it created the largest differences in wealth between racial groups that we've seen in the past 25 years.
Take a look at this. This is 2005. The median household net worth for white, Hispanic and black families right here before the economic downturn, you can see a disparity already. What does that mean, household net worth? It means how much you own, like your house, your car, minus how much you owe, your debts for things like mortgages and auto loans.
So, this was 2005, and then bam, 2009, there's that disparity. The housing bubble burst in 2006. The recession hit in 2007, continued into 2009, and this is the toll it took.
Let's check out 2005, 2009 side by side. Minorities were much harder hit than white Americans by the economic downturn and the financial crisis. And that wealth cap is almost twice what it used to be. And that's really interesting here, also, that Hispanic households lost a whopping 66 percent of their household net worth over those few years. Why? The Pew study says it's because a large number of Hispanic Americans live in Florida, California, Nevada, Arizona. Those states were the hardest hit by the housing bubble when it burst. And still today, those states have the lowest home values in the U.S.
This is how much wealth was lot, white families, Hispanic families and black families just over the years, 2005 to 2009.
Christine Romans, CNN, New York.
(END VIDEOTAPE)
PHILLIPS: Well, time is running out and still no deal on the debt limit. At 12:00 p.m. Easter, we're going to talk to a psychologist who says it's like a bad marriage and talks between both sides need to be more intimate.
Plus, money and happiness. Why do people in the richest countries show higher numbers for depression?
(COMMERCIAL BREAK)
PHILLIPS: Well, as you can imagine, the debt ceiling battle right here in the nation's capital is having a huge impact on the campaign trail. No surprise, deputy political director Paul Steinhauser.
PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: No surprise. Jobs is still the number one issue, of course, but no surprise at all. In fact, Michele Bachmann, congresswoman from Minnesota, she's in Iowa today. Of course, that's the state that kicks off the primary caucus calendar. She just added an event, Kyra. In about an hour from now, she'll be talking about what else? The debt ceiling.
And we saw a bunch of responses from all the candidates last night after the president's speech. And also no surprise: these are all Republican candidates, so they pretty much does not have a good word to say about President Obama. They, of course, did not criticize John Boehner, the House speaker.
So, what do Americans have to say about all this? Well, check out this new poll out from ABC and Washington Post. Not good news, I guess, for any side. Look at this: do you approve of how blank is dealing with the budget deficit? Well, only 38 percent giving the president the thumbs up. But look at that: Republicans in Congress, 27 percent.
Now, this poll is conducted about two weeks ago. I bet those numbers have gone down even since last night's speeches. Kyra?
PHILLIPS: Well, we had Cory Wire, the linebacker from the Falcons in here today, talking about how he helped negotiate a deal for the NFL. Maybe we should bring the football players in to help negotiate the debt ceiling.
STEINHAUSER: Well, yes. They got a deal, right? So, why can't we get a deal here in Washington?
Take a listen. This is Robert Kraft, the head of the New England Patriots. Take a listen to what he said.
(BEGIN VIDEO CLIP)
ROBERT KRAFT, OWNER, NEW ENGLAND PATRIOTS: I hope we gave a little lesson to the people in Washington because the debt crisis is a lot easier to fix than this deal was.
(END VIDEO CLIP)
STEINHAUSER: Glad he was joking about that, Kyra, but I think we all know it's a little bit tougher here than there, don't you think?
PHILLIPS: Oh, yes, I think so. Quite a bit tougher. Paul, thanks.
I don't know. Suzanne Malveaux, you covered the White House. What do you think?
SUZANNE MALVUEAX, CNN ANCHOR: Well, you know, that's what we were talking about. Get those NFL negotiators to get in Washington, do something. Or you'll have to talk to a therapist to see if they can do anything.
(CROSSTALK)
MALVEAUX: It's like a bad marriage, you know?
PHILLIPS: Yes, exactly. Be a little more intimate, work it out.
MALVEEAUX: Exactly. Talk to each other.
All right. Thanks, Kyra.
PHILLIPS: You bet.
