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Norway Suspect's Father Speaks Out; Politics of the Debt Limit Debate; Debt Deadlock Could Hurt Jobs; Cyber Security Boot Camp; Anger Over Airline Ticket Prices
Aired July 26, 2011 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SUZANNE MALVEAUX, CNN ANCHOR: It's live from Studio 7, I'm Suzanne Malveaux. Want to get you up to speed for this Tuesday, July 26th.
The deadline for raising the country's debt limit just one week away. No deal means higher interest rates on mortgages, car loans, not to mention the damage to the country's financial standing.
Well, last night, President Obama and House Speaker John Boehner took to the air in dueling speeches, and the president acknowledged what so many of us are feeling, and that is frustration.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Do you know what people are fed up with most of all? They're fed up with a town where compromise has become a dirty word.
REP. JOHN BOEHNER (R-OH), SPEAKER OF THE HOUSE: The sad truth is that the president wanted a blank check six months ago and he wants a blank check today. This is just not going to happen.
(END VIDEO CLIP)
MALVEAUX: As makeshift memorials spring up across Norway, police and the public are searching for answers to Friday's deadly attacks. The lawyer and suspect (SIC), Anders Breivik -- the lawyer suggests that his client is insane. The suspect's father, who doesn't want to be identified, agrees.
(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 (through translator): Those are strong words from a father.
UNIDENTIFIED MALE (through translator): 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)
MALVEAUX: Money from a U.S. defense contract is now in the hands of the Taliban. A U.S. military task force now believes that part of a $2 billion contract for troop transportation was diverted through a network of Afghan criminals. That's according to a source with knowledge of the investigation. And the source says it appears that some of the money went to buy protection for truckers traveling through areas controlled by the insurgents.
Well, just one day after New York saw its first gay weddings, conservative groups filed a lawsuit challenging the state's same-sex marriage law. Now, they argue that supporters violated state senate procedures to push that law through. New York is the sixth state, along with the District of Columbia, to allow gay couples to marry.
Well, in Oregon, a congressman accused of unwanted sexual advances toward a young woman will not seek reelection. Representative David Wu is under pressure to step down. An aide says Wu is considering all options.
Jessica Brady with the Capitol Hill newspaper "Roll Call" says Wu's accuser is the daughter of a campaign donor.
(BEGIN VIDEOTAPE)
JESSICA BRADY, "ROLL CALL": 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 with him.
(END VIDEOTAPE)
MALVEAUX: California governor Jerry Brown has signed the Dream Act into law. Now, this bill makes students who are illegal immigrants eligible for in-state college tuition, which can be as much as five times cheaper than out-of-state tuition. Those students must agree to apply for legal immigration status.
Well, there are no answers from an autopsy on what killed five- time Grammy Award-winner Amy Winehouse. The coroner hopes to know more when lab test results come back. That's going to happen in two to four weeks.
Winehouse was found dead in her London apartment over the weekend and she is being buried today at a private funeral. Her battles with drugs and alcohol were well documented and a -- in a struggle -- a -- her struggle, that is.
And HLN's Dr. Drew says she may have won that battle if she had taken more time away from the limelight.
(BEGIN VIDEOTAPE)
DR. DREW PINSKY, HOST, "DR. DREW": What they need to do is drop out, not worry about their job and focus on their recovery, many times for months or years before they return to something like touring for a musical performance.
(END VIDEOTAPE)
MALVEAUX: Michael Jackson's family is planning a tribute concert, but not all the Jacksons are on board here. Brothers Germane and Randy say it's bad timing to schedule the concert for October 8th in Wales. That is when Conrad Murray, the doctor charged in Michael Jackson's death, is going to be on trial in the U.S.
Here's your chance to talk back on one of the big stories of the day. Today's question is, What would you tell Congress to do about the debt limit? Carol Costello -- she's joining us from Washington. Carol, I bet you you're going to get a lot of folks weighing in on this one.
CAROL COSTELLO, CNN CORRESPONDENT: I urge all of our Facebook friends to keep it clean, though. That's my only request today!
(LAUGHTER)
COSTELLO: What is happening in Washington is political gamesmanship at its worst. It's ugly and more than a little bit scary. The United States has never gone into default because past administrations and lawmakers have compromised.
CNN contributor John Avlon says lawmakers have raised the debt ceiling 77 times since JFK, including 18 times under Ronald Reagan and 7 times under George W. Bush. But back in the day, politicians weren't quite so macho. Many now insist on standing on principle, even though most Americans stand on the side of good old-fashioned compromise.
According to a CNN/ORC poll, two thirds of Americans want the president and Republicans to compromise, rather than stand up for their beliefs to get things done. Wow! A break from partisanship, at least among what politicians like to call "ordinary Americans."
Perhaps the happiest outcome of the president's speech last night was when he urged you to contact your congressmen and you did. Lawmakers' Web sites were crashing all over D.C.
And here's your chance to sound off again on Facebook and on CNN. And yes, lawmakers do watch CNN. You bet they do. So "Talk Back" today. What would you tell Congress to do about the debt limit? FaceBook.com/CarolCNN. FaceBook.com/CarolCNN. I'll read some of your comments later this hour.
MALVEAUX: It's interesting, Carol. It might be ironic that people -- everyday folks like ourselves empowered by this crisis now, that we're now more macho regarding, you know, getting those letters and e-mails to our lawmakers, telling them, Look, we want something done here.
COSTELLO: We have figured out a way around partisanship in a way our lawmakers have not.
MALVEAUX: Yes. Well, it'll be really interesting to see what folks have to come up with. Thank you, Carol. Appreciate it.
COSTELLO: Sure.
MALVEAUX: Here's a rundown of some of the stories ahead. First, more potential fall-out if the debt ceiling isn't raised. The price of doing business -- that's going to go up and companies could stop hiring.
Plus, five days after the carnage in Norway, search and rescue crews refuse to give up hope. We're going to check and see how that missing is going.
And then stunning (ph) a hacker's toolkit. We're inside a university that teaches all the tricks of this shadowy trade.
And if the FAA stopped charging taxes airline tickets, why aren't we seeing any of the savings?
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: They're charging the public for a tax that doesn't exist and putting it on their bottom line.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
MALVEAUX: Here's a look at today's "Choose the News" stories. You can vote for the story you'd like to see in the next hour. First, a lot of your personal information is floating out there in cyberspace, leaving you vulnerable to the underworld of computer hacking. Well, one guy is tracking down the bad guys to keep your information safe.
Second, a grandma armed with a baseball bat chases off an intruder. Now, when this 70-year-old woke up to find a naked man in her home, she knew she had to protect her sleeping grandchild upstairs.
And three, a U.S. soldier stationed in Afghanistan marries the woman of his dreams -- over the phone. When they couldn't get married in person, they found a way to make it happen thousands of miles apart.
So you can vote by texting 22360. Text 1 for hacker tracker, 2 for granny chases intruder, or 3 for phone wedding. Winning story is going to air in the next hour.
Poker showdown, political game of chicken, hot mess, whatever analogy you prefer, the deadline to raise the country's debt limit is one week from today. Still no plan. Back-to-back competing TV speeches happened last night. You had President Obama and House Speaker John Boehner squaring off over spending cuts and tax increases.
(BEGIN VIDEO CLIP) OBAMA: How can we slash funding for education and clean energy before we ask people like me to give up tax breaks we don't need and didn't ask for?
BOEHNER: The president has often said we need a balanced approach, which in Washington means we spend more and you pay more. Having run a small business, I know those tax increases will destroy jobs. The solution to this crisis is not complicated. If you're spending more money than you're taking in, you need to spend less of it.
(END VIDEO CLIP)
MALVEAUX: So it's not like Congress hasn't done this before. Lawmakers, in fact, have voted to raise the debt limit 74 times since 1962. So just flash back, September 1987. It was Republican president Ronald Reagan urging Congress to act.
(BEGIN VIDEO CLIP)
RONALD REAGAN, PRESIDENT OF THE UNITED STATES: Congress consistently brings the government of the edge of default before facing its responsibility. This brinkmanship threatens the holders of government bonds and those who rely on Social Security and veteran benefits. Interest rates would skyrocket. Instability would occur in financial markets. And the federal deficit would soar.
The United States has a special responsibility to itself and the world to meet its obligations. It means we have a well-earned reputation for reliability and credibility, two things that set us apart from much of the world.
(END VIDEO CLIP)
MALVEAUX: So 17 of the debt limit increases were under President Reagan, 5 were under President George H.W. Bush, 4 under President Clinton, 7 under George W. Bush. So why is raising the debt limit such a political fight this go-round?
Joining us to talk about that, CNN contributor John Avlon is the senior political columnist for "Newsweek" and the DailyBeast.
John, I mean, you know, everybody's scratching their heads, wondering what makes it different this time around? Why is this so hard?
JOHN AVLON, COLUMNIST, "NEWSWEEK," CNN CONTRIBUTOR: Well, this is, as you said, the first time in our history where the debt ceiling has been held hostage by hyper-partisanship, and that is a new and unwelcome development because this genie isn't going to be put back in the bottle. This could be the new normal.
And as you -- I want personal principled fiscal conservatives at home to listen to what Reagan said because those same arguments still apply. This is a dangerous game that Washington is playing, and Americans, I think, are getting increasingly frustrated and they're right to do so.
Call your congressman. The fact the Web sites are getting shut done -- because they understand that Washington is playing politics with our fiscal future. We are pedaling closer towards this cliff, folks. And it's a really unwelcome -- this is -- this is all the result of the hyper-partisanship we've been seeing in our politics, and it's taking a real toll on our economy today. Even if we don't default, we might get downgraded. That is a concrete consequence of all this kabuki theater.
MALVEAUX: John, covering Washington for years, we know what partisanship is all about. Why hyper-partisanship? Why has it gotten to this degree?
AVLON: I think we've got more and more safe seats. We've got the rigged system of redistricting and the closed partisan primaries that have moved power to the extremes of both parties. And you've got ideological litmus tests and anti-tax pledges that rein in Congressmen's ability to reason together.
I think the markets haven't reacted to this fully yet because they just see default as being so stupid, such an unforced error, such a self-inflicted wound that they assume we'll pull back from the brink.
But I think they may be underestimating this particular Congress and the role that ideology plays in blinding people to being able to reason together. That is the larger problem here. This is a direct result of the fact that the parties are more polarized than ever before. It makes it all but impossible to reason together.
MALVEAUX: And John, it's a tough thing to figure out because, you know, you see these Web sites, a lot of folks who are just generally really angry with the government right now and folks in Washington. But do we have a sense of who's more to blame, if they're going to blame more (ph), the president or Congress? Where do people place the responsibility, the accountability here?
AVLON: You're starting to see polls show independent voters swinging against the Republican Party on this, saying they're more culpable.
Look, here's what we know. Both parties in the past have played games. But President Obama deserves a great deal of credit for reaching out, pushing a balanced plan and taking the step of actually embracing entitlement reform in an attempt to get a grand bargain through. That is significant step for a Democratic president to take, and he deserves a lot of credit for that kind of leadership, despite the fact that a lot of liberal Democrats in Congress hated that idea.
It's the folks on the far right who've made it almost impossible for John Boehner to put together a grand bargain. And here's the worst irony. The whole reason we're going through this forced fire drill is because of the sense that we need to reduce our deficit and our debt. And what's likely to get pushed through now is a partisan plan that won't seriously deal with either. That is a huge lost opportunity that real fiscal conservatives will regret for a long time to come.
MALVEAUX: All right, John, thanks for your perspective.
AVLON: Thank you.
MALVEAUX: We're going to keep a close eye on all of this, a lot of people wondering how all this is going to play out, but clearly, a lot of tension, a lot of frustration at this point.
We're going to break down the latest plans for raising the debt limit and cutting the deficit. Our own Christine Romans of our Money team -- she's going to explain what is on the table. Chief business correspondent Ali Velshi -- he's going to explain how the debt crisis could affect the job market. That's coming up in about 10 minutes or so.
Well, a visit to Utoya island, a once idyllic spot that is now the focus of a grim search after Norway's worst massacre in more than 60 years.
(BEGIN VIDEO CLIP)
TOMMY ODEGAARD, RED CROSS SEARCH AND RESCUE VOLUNTEER: I have been very concentrated about the work that we are doing and try to keep the -- my emotions a little bit away from this.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
MALVEAUX: Norway's terror suspect Anders Breivik is talking, but only to his lawyer, the only person that police say he can talk to. His attorney says that Breivik continues to claim that two terror cells helped him carry out Friday's attacks and that he considers himself to be in a war. The attorney suggests that his client is insane, and Breivik's father, who wants to remain anonymous, says that he's grief-stricken and he wishes he could do something for everybody that was affected by this tragedy.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE (through translator): When you read about it on the Internet, what went through your mind?
UNIDENTIFIED MALE (through translator): I thought, Is this possible? This must be a mistake. It can't be true. But then I realized that it was true, although it's still completely incomprehensible to me that something like this could happen.
It's impossible to explain. He was just like other boys of his age. I'm not sure what more to say. He was a bit withdrawn. He wasn't very sociable, in a way. But he had no extreme tendencies in the period I knew him.
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 (through translator): Those are strong words from a father.
UNIDENTIFIED MALE (through translator): 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)
MALVEAUX: Friday's killing spree was the deadliest in Norway since World War II. Police are now already beginning to release the names of the victims. There are 76 so far. Several people from Utoya island are still missing.
Our CNN's Diana Magnay has more from there.
(BEGIN VIDEOTAPE)
DIANA MAGNAY, CNN CORRESPONDENT (voice-over): It's a painstaking task, and a grim one, scouring the dark waters of this Norwegian fjord 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's search operation since Friday evening.
(on camera): When did it begin to sink in, what has happened?
TOMMY ODEGAARD, RED CROSS SEARCH AND RESCUE VOLUNTEER: Well, I'm not sure if everything has sink -- sunk in yet. I have been very concentrated about the work that we are doing and try to keep the -- my emotions a little bit away from this. So maybe it will take some time until they -- they come (ph).
MAGNAY (voice-over): Just across 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, UTOYA RESIDENT: This message should not be spread too much. It's not good thoughts. 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?
LIE: I was scared. I think this is Hitler number two.
MAGNAY: We're five minutes from Utoya, 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. Breivik acted out on his far-right ideology, but how many people in this society feel the same away as he does? (voice-over): Odegaard's 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 and 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. 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 Utoya, Norway.
(END VIDEOTAPE)
MALVEAUX: We're going to go to a live event that we're following out of Washington. This is a news conference that is being held by the Republican leadership after a meeting that they had. They are talking about introducing a bill requiring the treasury secretary to prioritize when it comes to certain payments -- the debt service, Social Security, military pay.
All of this, as you know, is happening as both sides, Democrats, Republicans and the president, try to negotiate some way of cutting (ph) through this impasse, whether it's raising the debt ceiling, cutting spending, raising taxes and a deadline that's looming just a week away in which the United States could default on some of its bills.
I want to take a listen real quickly, let's dip in. This is Senator Pat Toomey of Pennsylvania.
SEN. PAT TOOMEY (R), PENNSYLVANIA: And that's why we're introducing a bill that we're unveiling today, Ensuring the Full Faith and Credit of the United States and Protecting America's Soldiers and Seniors Act.
I'm delighted to report that as of this moment, we already have 31 co-sponsors in the Senate. The number's been growing consistently. And what our bill would do is, it would instruct the treasury secretary, in the event that the debt ceiling is not raised prior to August 2nd, to make certain obligations priorities so that they will be paid in full, on time, and without delay.
The three priorities are simple. First, it's interest on our debt so that we will not default on our debt and not plunge our economy into chaos. Second, Social Security payments because millions of senior citizens, including my parents, depend on the Social Security payments that they've earned by virtue of their own prior contributions to the system.
And finally, the payroll for active duty military personnel because the men and women who are risking their lives for us should not have to worry about whether their families will receive their income in a timely fashion. Now, as this chart illustrates, there are far more than enough resources for the administration to make these payments, and frankly, many others. For the period from August 3rd to August 31st, total revenue will be at least $173 billion, perhaps much more. And the combined costs of paying the interest on our debt, Social Security payments and active duty military pay will be about $81 billion, so less than half of the revenue that will be coming in during the month of August.
These numbers, by the way, are not made up by somebody in my office. These are the numbers provided by the Bipartisan Policy Center. They've been confirmed by many other sources.
Let me close by saying this. This bill is not and it's not meant to be a substitute for raising the debt limit. I, and I suspect, most of the folks on this stage have actually voted in favor of raising the debt limit, provided that we put our government on a path to a balanced budget. What this bill is all about is minimizing whatever disruption might otherwise occur if the debt ceiling is not raised prior to August 2nd.
I continue to hope that this legislation never needs to be implemented, but it would be very, very irresponsible to be unprepared, or worse to be unwilling, to minimize the potential for disruption.
At this time, I'd like to introduce the chairman of the RNC --
MALVEAUX: All right, we're going to have more on the debt ceiling discussion. We told you about a debt default could lead to higher interest rates, could also hurt the struggling job market. Our chief correspondent, Ali Velshi -- he's going to talk about that, as well as this Republican legislation claiming that the government could start paying piecemeal its bills and actually prioritize some of that spending and avoid some sort of financial crisis in about a week or so. So we're going to have Ali Velshi after this quick break.
(COMMERCIAL BREAK)
MALVEAUX: We told you about how a debt default could lead to higher interest rates on things like car loans, home mortgages. Could also hurt an area of the economy still struggling from this recession, and we're talking about the job market.
I want to bring in our chief business correspondent, Ali Velshi, who joins us from New York.
And Ali, let's first of all talk about what we just heard from the Republicans on the Hill. We heard from Senator Pat Toomey of Pennsylvania. Interesting what he said. And I really want to get your take on this.
Is it possible, if you introduce legislation that's passed that requires the treasury secretary to prioritize in terms of payment Social Security, veterans benefits, these type of things, and avoid what might be a tragic situation going into default? Is that possible to partially pay those bills piecemeal?
ALI VELSHI, CNN CHIEF BUSINESS CORRESPONDENT: You know, you put it well. It's interesting -- you and I are learning this as we go along. The United States has never been in this situation. I tried to get a comment out of Gene Sterling, the president's economic advisor this morning as to what sort of emergency plans they're making to prioritize payments.
Obviously, we got have interest payments which are huge and Social Security payments which are huge and we have a lot of other very big payments.
Now, here is the thing: on August the 3rd, Suzanne, a very big Social Security payment has to go out, $22 billion. You can't pay that and everything else that's due on August 3rd if we don't raise the debt ceiling.
MALVEAUX: That's right.
VELSHI: The next big day, I think, is August 15th or 16th which is when a big interest payment comes due.
So, Pat Toomey is saying he wants to prioritize interest payments on our bonds, then Social Security and sort of go in that direction. There are a lot of people who said, the credit agencies have said this, Ben Bernanke has said this, default is default. If you are going to get a downgrade just because you pay your bondholders doesn't mean you're not getting downgraded anyway. The downgrade could possibly cause an increase in interest rates. So, it may be the same effect in the interesting.
So, like I say, interesting, Suzanne. I don't know whether Pat Toomey, what he's suggesting has legal authority, and whether they can do that. I know that Treasury is prioritizing. They've got to do that, because on August 3rd, if they don't have enough money to pay all the bills, they've got to make decisions as to which bills they're paying.
MALVEAUX: Is it possible to avert a financial crisis? Maybe this is a big unknown, if they decide we're just going to pay for this first or is it still going to be in a default situation?
VELSHI: Remember, there's a technical part of this, right? Those of us who have mortgages and credit card loans know there's a technical part of this. If you don't pay by this day, they report you to the credit bureau -- your credit rating goes down.
Then there's the psychological part of this.
MALVEAUX: Sure.
VELSHI: The world is going to say, oh, my God, America missed a payment on X. They're all, of a sudden, a bad bet. We're going to invest in the bonds of Canada or Australia, or places like that.
It's possible. But the fact is America sells off more debt than anyplace else does. So, you can't actually replace it with a lot of other countries.
Unclear how the world will react. But again, all we have to go on is previous experiences. We look back to 2008, in Lehman Brothers. We look back to the day that Congress didn't approve the bailout. You and I were both working both of those days. And we did not expect the market to react the way it did back then.
So, the market is people like us. It's psychological more than it is technical.
MALVEAUX: And bring it back to us here. What does this mean in terms of jobs, in terms of housing -- how this is going to affect us if the United States defaults?
VELSHI: You know, there are three things that make you feel prosperous, Suzanne. It is the value of your investments going up, the value of your home going up and your wage, right? So, you investments we know that stocks could take a hit if they don't get a deal.
The stock market has not been largely affected by this because most investors are beating that they will have a deal. So, take investments off the table.
Now, let's take a look at the value of your home. If the federal government has to pay more for loans and bonds, it could start to affect the ability of banks and bondholders to finance mortgages. So, it could cause variable rate mortgages to increase, it could cause fixed rate mortgages to increase.
Mortgage rates are historically low right now. So, we're not anticipating a huge problem. But here's the thing -- we have a problem in getting our home prices back up.
MALVEAUX: Sure.
VELSHI: So, we can't take anything in terms of downward pressure on home prices. So, it could have an affect there. Most important thing of those three that I just mentioned, of your investments, of your home and of your job, you can live without the first two, Suzanne. You can't live without a job. If companies start to find it more difficult to borrow as a result of a downgrade, the first thing companies when they to cut is to cut jobs -- something else we can't afford.
So, look at this. These are the jobs created in the last three months.
MALVEAUX: OK.
VELSHI: You can see it' been trending down since April. We really can't afford to go into a negative place. So, I wouldn't want to bet things can't go wrong, Suzanne. I think there's a good chance things can.
MALVEAUX: All right. Well, we're going to keep an eye on Washington and what happens -- whether or not this legislation makes any difference at all. Appreciate your perspective here, Ali.
VELSHI: OK, Suzanne.
MALVEAUX: Well, a mother grieving after her son was struck and killed by a driver. But a judge just sentenced her to three misdemeanors related to his death.
David Mattingly, he's joining us live from Marietta, Georgia.
David, if you could, just take us from the beginning here, this story. Essentially, how did this young boy die and why is his mother involved?
DAVID MATTINGLY, CNN CORRESPONDENT: Suzanne, about a year ago, Raquel Nelson was attempting to cross a four-lane road with her three children. This was at night. They had taken a city bus from the grocery. They were trying to get home when they were crossing the road. A hit and run driver struck and killed her 4-year-old son.
Well, the police were able to find that hit and run driver. He served six months of a five-year sentence and people thought that should be the end of this sad, tragic story.
But it wasn't. The mother herself was also charged with counts of second degree vehicular homicide and jaywalking.
Well, today, she was sentenced for those crimes. She had been found guilty by a jury and today the judge decided that she will not go to jail. Instead, she will just have a year probation and serve 40 hours of community service.
At the time, there was a great deal of relief in the courtroom, about 100 people there. We heard from several people in they are life, a teacher for her son, we heard from a counselor, we heard from her employer -- people getting up saying what a wonderful mother she was, hour caring and hard working she was and how she did not deserve to be separated from her children. In the end, the court listened.
The prosecutors themselves got up and said they didn't want to see her go to jail. They recommended that the court give her probation. And in the end, that's what it will be, one year of probation, 40 hours of community service, 20 hours of those, according to the judge, needs to be spent in some form of promoting child safety.
MALVEAUX: Sure.
MATTINGLY: And on top of that, the judge gave this mother, Raquel Nelson, the option, if she wants it, to have a new trial if she wants to face a jury again and possibly clear her name. She has that option to do that if she wants it. Her attorney tells us that she is strongly considering it -- Suzanne.
MALVEAUX: And, David, this case has actually attracted a lot of attention because people anticipated that she might actually have had to serve more time than this individual, the man who ran over and killed her child.
Do we -- what was the story behind that?
MATTINGLY: Well, there are three misdemeanor counts that were against her. Each of them carried a maximum of one year in jail. That was the maximum she was facing.
MALVEAUX: OK.
MATTINGLY: After she found out that she was guilty, she did go public and, in fact, getting national attention, saying that it was possible, if she got the maximum sentence, that she could serve more time than the man who actually hit and killed her child.
Well, that was never the case. The prosecutors never wanted her to see jail time, and the judge, in the end, has given her one year of probation and community service.
MALVEAUX: OK. All right. David, thank you very much. I appreciate the latest update on that story.
We're going to have more after the break.
(COMMERCIAL BREAK)
MALVEAUX: Jay Leno wasn't pulling any punches last night, talking about the country's debt crisis.
(BEGIN VIDEO CLIP)
JAY LENO, "THE TONIGHT SHOW WITH JAY LENO": "Captain America," the number one movie in the country. The good news? It made $65 million. The bad news? Captain America owes Captain China $14 trillion.
(END VIDEO CLIP)
MALVEAUX: Nobody is laughing on Capitol Hill. Democrats, Republicans, they are still fighting over the debt limit.
Our Jim Acosta, he's part of the Best Political Team on Television. He's at the ticker desk in Washington.
Hey, Jim. Great to see you.
We're hearing that the president, when he called out for voter toes reach out to their members of Congress and their Web sites --
JIM ACOSTA, CNN CORRESPONDENT: Right.
MALVEAUX: -- that they're listening
ACOSTA: Yes, absolutely. You know, we got reports overnight that the Web sites for the speaker, John Boehner, and a Tea Party Republican who is running for president named Michele Bachmann, that those sites were having some problems overnight. And as a matter of fact, I was doing some checking on in this morning. I just called the main number for the House of Representatives, got a busy signal and then finally got through and the operator told me, yes, we're extremely busy right now and I promptly hung up the phone to cut her a break.
So, yes, they are experiencing a heavy load up on Capitol Hill right now and that's not to be -- that's not to be too surprised. This does happen every once in a while, Suzanne, as you know.
MALVEAUX: And it seems a little surprising that people, they responded to quickly. Do we know, was it just Republicans, whether Democrats, was it positive or negative? Do we have any idea what they were actually saying?
ACOSTA: You know, it's unclear whether Democratic sites have been hit -- I have not seen that or heard that as of yet.
I was also checking a freshman Republican named Joe Walsh. His site was also not responding this morning. His Web site was not responding this morning. So it may be that the Republicans are feeling the heat a little bit more than the Democrats at this point, but we'll see. The day is young.
MALVEAUX: The day is young.
And I understand Republicans and presidential candidates, they are weighing in on this, as well.
ACOSTA: That's right. You know, it didn't take long after the president's address last night to the nation for some of the GOP 2012 candidates to weigh in. Michele Bachmann, she put out a statement overnight accusing the president of using the American people as, quote, "collateral damage." That was a line that the president used last night -- so, Michele Bachmann going after the president.
And Tim Pawlenty put out a statement overnight accusing the president of lecturing the American people and not leading the American people. What's kind of interesting about those two right now, Suzanne, is that they've been going at each other a little bit more than at the president lately. So, at least for a brief moment, there was a cease-fire on the candidates from the GOP side, they were directing their comments at the president.
MALVEAUX: All right. A little bit of a cease-fire break there.
All right. Jim, thank you.
ACOSTA: Yes.
MALVEAUX: Good to see you.
For the latest political news, you know where to go, CNNPolitics.com.
Well, you know, to beat a hacker, maybe I have to think like a hacker. Universities are now exposing their secrets and techniques. I'm going to take you inside one class in Missouri.
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MALVEAUX: "CNN In Depth," welcome to the digital age.
Companies are feeling so threatened by cyber crime now that they are shelling out some big bucks to protect themselves. I want you to take a look at this number. This is a mind blowing $130 billion -- in a b. That is how much a security research firm says that companies will pay this year dealing with hacking. This is data breechings, other online violations. A hundred thirty billion dollars, roughly the gross domestic product of New Zealand. It is also more than three times what companies had to pay just five years ago.
Cyber crime has become such a clear and danger rather, that colleges around the country are offering week-long crash courses on the secret techniques that hackers use.
Cyber Challenge Camp opened shop at the University of Missouri. That was this week. Our Ted Rowlands, he is there.
Td, you're getting schooled against cyber crime. What do they teach you there?
TED ROWLANDS, CNN CORRESPONDENT: They're getting schooled. We're watching.
Basically, all of these folks, all of these students are invited to come to this weeklong camp. This is one of several going on across the country over this summer. And what these students are doing is honing their skills by assuming the role of a hacker, and they're learning the different tricks, seeing how hackers get into different systems.
Let's face it, we're all potential victims on the low level, but companies like Sony, which was just hacked, has a huge amount to lose. That's that, you said, is sobering in the amount of money spent on cyber defense.
These are some of the best minds in the country and they're being brought here on this U.S. cyber challenge as part of a learning expedition, but there's also a competition component. On Friday, they will all compete against each other and the winner will actually get a scholarship for more education, and they're all being looked at very closely in terms of job placement.
The guy that won this event last year is Alex Levinson. He now helps put on these events, and is also sought after in the industry because of his skills.
Alex, a lot of great minds here, but you yourself used to hack into video games. You were on the other side, if you will, on a small scale. What does it take for the best minds to come over and help defend us, rather than joining the dark side?
ALEX LEVINSON, LAST YEAR'S CYBER CHALLENGE WINNER": That's a good questions. A lot of what you see today in cyber security is this industry is almost the wild, wild west. We've pushed all these people underground for so many years saying hackers are bad, hacking is bad.
ROWLANDS: It is.
LEVINSON: It is, but now you can learn these skills for good and benefit by securing networking sites and such.
ROWLANDS: A lot of them -- you're a brilliant guy, you could make a lot of money in this industry.
LEVINSON: That's true, yes.
ROWLANDS: What do we need to do to get more people like you on our side and helping out on the defensive?
LEVINSON: It's actually pretty cool. You need to start educating people at a younger age, start teaching this stuff in high school, start teaching it in college. You have a lot of computer science programs across the country, throw in some security curriculum into that stuff.
ROWLANDS: Bottom line, who is winning this war?
LEVINSON: Now? Us. We are.
ROWLANDS: Good.
But it's a constant war, Suzanne, obviously. It's an ongoing battle. They improve the system and then someone gets into it. But camps like this are going to a long way to get the best minds on our side to help protect everybody.
MALVEAUX: Well, Ted, glad Alex is on our side. He's left the dark side, he's now on our side. It's good. It's an interesting class. And tell Alex we appreciate him now.
Appreciate it, thanks.
Today's "Talk Back" question: What would you tell Congress to do about the debt limit?
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I think it sucks. The United States is the most powerful country in the world and for us to be in this type of position, to say that we're going to be fault on our debts, is just an embarrassment.
UNIDENTIFIED FEMALE: I kind of feels hopeless, you know? Cause like when you hear the amount of money, I can't even understand exactly how much money that is, you know?
(END VIDEO CLIP)
MALVEAUX: More of your responses straight ahead. (COMMERCIAL BREAK)
MALVEAUX: You have been sounding off on our "Talk Back" question: What would you tell Congress to do about the debt limit? Carol Costello's got some of your responses.
Hey, Carol.
COSTELLO: A lot of responses today, Suzanne, so here's the first one from Ben.
He says, "Stop focusing on defeating the president and start doing your jobs. The rank and file congressional member is paid $174,000 a year and these people can't even agree to disagree. We want our money back."
This from Tiffany, "Stop acting like spoiled children and learn to share or go back to kindergarten. Do I smell a recall?"
This from Cathy, "My husband and myself depend on our Social Security disability check on the 3rd to pay our bills. Plus my son is on VA/Disability. Do we send the bills to them (lawmakers)?"
This from Tim. "I'm telling my Senator, McCain, a man I once admired, to restore and preserve courage and honor, first to himself, then to his party so they can provide a balanced bipartisan budget. That represents the majority of Americans."
And this from Melinda, "I would tell Congress to stand firm and not cave to the bully in the Oval Office. It's horrifying to see a president hold a nation hostage like this."
This from Kevin, "Do they not realize that the rest of the world is laughing at them? The Congress has lost all respect it might have had, they are just a bunch of clowns now totally out of touch."
Please keep the conversation going, Facebook.com/CarolCNN. I'll be back with you with another "Talk Back" in 15 minutes, but I understand you have something special for us now, Suzanne.
MALVEAUX: Of course. We always have something special.
OK, remember when you were riding in the backseat when you were a kid and there was, you know, you were maybe looking at the billboards, staring out the window or something like that, right? Long family trips, that kind of thing.
COSTELLO: Yes.
MALVEAUX: OK. So Toyota has come up with this thing, it's called Window to the World. The car windows, they are actually touch screens like an iPhone so you can trace objects that you're passing, you can zoom into them. You know, nobody yells at you for smearing up the windows, that kind of thing?
COSTELLO: That's pretty cool. MALVEAUX: You think it's cool? I thought hey, what happened to the days where you could just look out the window, you know? And play that silly alphabet game and look at the billboards. Remember those days?
COSTELLO: Think of it this way. You know, you get those big family vans and they have like TVs and you can put the DVD in there and the kids watch the DVD? They don't even notice what's going on outside. They never look out the window.
So at least they look out the window and they can use their imagination and they can pull from it and draw on the window. I think that's terrific.
MALVEAUX: You like that, huh?
COSTELLO: It's creativity.
MALVEAUX: You can use your imagination looking out the window and imaging all kinds of things, too. I mean, your environment, you know, everything outside.
You like this one, huh?
COSTELLO: I do. I really think it's cool.
MALVEAUX: All right. I will drive, you get in the backseat, we'll see how you deal with all that, all right? See if it's overload.
COSTELLO: I'll paint some pretty pictures.
(LAUGHTER)
MALVEAUX: All right, Carol, we'll get back to you in a bit.
Anger now over the cost of airline tickets. Transportation secretary, he is now criticizing airlines for not giving consumers a break.
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RAY LAHOOD, TRANSPORTATION SECRETARY: They're charging the public for a tax that doesn't exist. And putting it on their bottom line.
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MALVEAUX: A fight over the FAA's budget means the agency is not taxing airlines right now. You should have cheaper ticket prices, right? Well, CNN's Jeanne Meserve reports that the savings are not being passed on.
(BEGIN VIDEOTAPE) JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT (voice-over): What might have been a windfall for air travelers is instead a gold mine for the airlines.
The failure of Congress to reauthorize the Federal Aviation Administration has left the agency unable to collect about $200 million a week in taxes. That could reduce the price of an airline ticket by about $25 to $50, but most consumers are not seeing the savings because airlines have seized an opening to increase fares.
LAHOOD: They're charging the public for a tax that doesn't exist.
MESERVE (on camera): And pocketing the money.
LAHOOD: And putting it on their bottom line. Almost every airline except for one made money last year because of baggage fees, because of pillow fees, because of blanket fees, because of food fees. What I've said to the airline association is you need to start thinking about the customer.
MESERVE (voice-over): A handful of airlines, including spirit and Alaska Air, are passing savings along to consumers and one travel expert believes those who have increased ticket prices will eventually have to change course.
RICK SEANEY, CEO, FARECOMPARE.COM: My guess is going into the fall season, which is a little bit softer, they would almost be forced to drop their air fare prices back down.
MESERVE: The reauthorization impasse is not impacting flight scheduling or safety. Air traffic controllers remain on the job, but the FAA has furloughed about 4,000 other employees and halted airport projects around the country, jeopardizing construction jobs.
The main obstacle to an agreement is a program that helps maintain service to out of the way airports. A key House Republican says the FAA essentially subsidizes tickets up to the tune of $3,700 per passenger.
REP. JOHN MICA (R), FLORIDA: The problem with FAA and this extension is the same problem we face in Washington. No one wants to stop spending, no one wants to stop wasteful programs.
MESERVE: Secretary LaHood counters that the issue of subsidies should be dealt with separately from the reauthorization extension, but most experts we spoke to believe Congress isn't going to revisit the issue of the FAA until they resolve the much larger dispute over the debt ceiling.
Jeanne Meserve, CNN, Washington.
(END VIDEOTAPE)
