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Clock Ticks Toward Debt Deadline; Norway Terror Investigation Continues; Americans Want Compromise; Veterans Meet At The White House Over Fears That Default Will Stop Payments ; Jaywalking Mom Gets Probation; Top Cities for Singles; Inciting More Hate?

Aired July 26, 2011 - 16:00   ET

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

BROOKE BALDWIN, CNN ANCHOR: And now here are, top of the hour. Watch this.

(BEGIN VIDEOTAPE)

BALDWIN: Whose plan will really work? What are the sticking points now to save America from defaulting on its debt and what will the price at your household be if Washington doesn't come up with something? We're going to straight to the White House this hour for answers.

I'm Brooke Baldwin. The news is now.

(voice-over): A drunk driver hit this woman and her three children. Her little 4-year-old died. So why did a judge sentence her today? Sunny Hostin is on the case.

And it's a chilling manifesto that authorities believe this madman wrote before carrying out a bloodbath.

GEIR LIPPESTAD, ATTORNEY FOR ANDERS BEHRING BREIVIK: This whole case has indicated that he's insane.

BALDWIN: Who was he most enamored by? What inspired him politically? You may be surprised if you actually read the whole thing. And my guest today has. Religion and political scholar Jeff Sharlet joins me live.

Then, Glenn Beck's shocking suggestion that the teenagers at that Norway political camp remind him of the Hitler Youth. He went on to question why young people would be sent to a political camp at all. What? That is not only inappropriate. It's just plain wrong. Today, we're calling him out.

(END VIDEOTAPE)

BALDWIN: Welcome back. Top of the hour. I'm Brooke Baldwin.

Let me remind you again, the debt ceiling deadline one week away, seven days from the day we have all been warned now for months and months that all financial hell could break loose, unless Washington increases the nation's borrowing power. And while there's plenty of partisan bickering in public, there's still no clear sign that anyone is ready to compromise on a deal to increase the nation's credit limit. So behind the scenes on Capitol Hill, Republicans are having a tough time drumming up support for their plan, and the White House is issuing a veiled threat to veto it, that just in this afternoon, saying that is what the staff is recommending to the president.

A couple of other items I want to pass along to you also happening today. The White House is calling in the troops. Veterans groups are heading right there to 1600 Pennsylvania Avenue to be briefed on what could happen to their ranks if the debt ceiling isn't raised.

And some states are making contingency plans, case in point, California taking out a temporary $5 billion loan, this bridge loan to help pay its bills in case Congress fails to act and turmoil in the credit markets makes it simply impossible for the state to borrow money after August 2.

But take a walk with me, because I want to show you as we have been discussing, there are two different bills here on the table. We heard in detail about these bills yesterday. And they are both being introduced on both sides of the aisle here. You have one from Democratic Majority Leader Harry Reid and this other bill that is now out there from House Speaker John Boehner.

And keep in mind, they do have similarities. And that's what I want to first highlight. Similarity number one, both plans would cut spending. Also neither of these plans would raise taxes. But there is one really huge difference. This, the timeline. The Reid plan would raise the debt ceiling beyond next year's presidential election.

But if you look at the Boehner plan, Mr. Boehner would like to raise the debt ceiling in two separate steps, setting up the possibility that we could be having this drama, this debt debate all over again during next year's election season.

As it stands right now, it is highly unlikely that the House would pass the Reid plan or that the Senate would pass the Boehner plan. So here we are, at a standstill, at a stalemate, as the president said last night, one week here before the deadline date of August 2. And that is the final day the White House says the United States will have enough money to pay off all its creditors.

But let me say this. This is historic. This is unchartered territory. No one knows for certain what will happen if we all wake up the morning of August 3 with no increase in the debt ceiling. But economists warn that interest rates are unlikely to jump.

Let me show you how we all could be affected here. That would affect you if you have an ARM, an adjustable rate mortgage, if you're trying to maybe buy a house or refinance or if you're trying to sell your house, higher mortgage rates would price some potential buyers totally just out of the market. Here's another example. You're looking to buy a car? If you are, a car loan would definitely cost you more. Also, credit cards, you're going to pay more to keep a balance on your credit cards if this whole thing doesn't happen. And the stock and bond markets, the stock and bond markets could drop. And that means your retirement savings, your mutual fund investments would take a hit. And we have been talking to a lot of you across the country today. And a lot of you are concerned about how a failure to raise the debt ceiling would affect your wallet.

Watch this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I really believe that if this is not resolved, forget about the recession. We're going to go into a serious depression.

UNIDENTIFIED FEMALE: I'm very concerned about the debt crisis, sure. I'm concerned for future generations more than myself.

UNIDENTIFIED FEMALE: What are you most concerned about?

UNIDENTIFIED FEMALE: That our children will have to face all the debt. I think we need to stop spending money right now.

UNIDENTIFIED FEMALE: Yes, I'm a little concerned about Social Security for sure. It makes up quite a bit of my income, my basic income. And I think it's really important, however, that our country, that the people that represent us actually do represent us and really want the best for us.

UNIDENTIFIED FEMALE: If credit card interest rates went up, that would be a real problem for me. If it makes borrowing more difficult, you know, I want to buy a new car next year and that might be more difficult, you know, just things like that.

UNIDENTIFIED FEMALE: People don't have jobs. We have this horrible economy and then you're going to let the debt ceiling cave in? What are they thinking? It's just clear that they don't care. Their concern is not for the people.

(END VIDEO CLIP)

BALDWIN: I want to bring in Stephanie Cutter. She is an assistant and deputy senior adviser to President Bush.

And, Stephanie, good to see you.

(CROSSTALK)

BALDWIN: Let's just begin with one big criticism we have been hearing. We have been talking to folks. We just heard from someone there sort of airing their grievances and their concerns.

And one is, look, we now have this concrete Boehner plan. We have a Reid plan. But where is the president's plan, at least, you know, outlined on paper?

STEPHANIE CUTTER, ASSISTANT TO PRESIDENT OBAMA: Well, you know, the president has been leading a process for months to bring both parties together to find areas in which can agree.

And he spoke last Friday night very strongly about where he thought those areas of agreement were. And, in fact, in Senator Reid's plan, the $2.7 trillion of cuts are an example of where that agreement was before Senator (sic) Boehner walked away from the negotiations.

Those cuts that Senator Reid is putting on the floor of the United States Senate have been agreed to by people that were sitting in the room negotiating representing Speaker Boehner.

So in terms of what can pass right now, Senator Reid has a plan that had bipartisan support that could extend the debt ceiling all the way through 2012, put our economy on stronger footing, and remove the cloud of uncertainty so we can focus on what we really need to focus on and grow the economy.

BALDWIN: Well, speaking of passing or perhaps not necessarily passing, Stephanie, let me throw a hypothetical at you, and that being if the Boehner plan doesn't pass the Senate, if the Reid plan doesn't pass the House, the clock is tick. Then what? Then what?

CUTTER: That's right. That's right.

Well, exactly. You're right. The clock is ticking. And that was part of the president's message last night. Compromise. We need to find areas in which we can compromise. It can't be my way or the highway. We have to find areas in which we can agree.

We're continuing to have discussions with the House and Senate to find areas where we can agree. The House is moving forward on their plan. You're right. It's not clear whether or not it can even pass the House. It's definitely not going to pass the Senate.

And on the Senate side, Senator Reid is not clear on how many Republican votes he can get. We hope that it will be a bipartisan agreement, considering that these cuts have already been agreed to. But we need to get to work and find areas of agreement. And we hope that we can.

The president remains confident that we will meet the August 2 deadline and be able to fulfill our commitments to the American people, to make sure that we can pay our obligations.

And, you know, last night, he said the American people voted for divided government, but they didn't vote for dysfunctional government. And we need to prove to the American people that we can get this done.

BALDWIN: I know that the White House has held many, many high- level meetings, some of which have been behind closed doors, some meetings certainly the public isn't even aware of. Stephanie, are any talks like that happening today? Is the president at all -- now that we know he has officially endorsed Senator Reid's plan, is he at all trying to sell this?

CUTTER: Well, I'm not going to get into exactly who the president is talking to today. But there's always conversations going on.

BALDWIN: Is he talking about this today?

CUTTER: Is he talking about Senator Reid's plan?

BALDWIN: Yes, ma'am.

CUTTER: I can't get into the conversations that the president of the United States is having with people, but he has been clear. He was clear last night with all of the American people that he thinks it's a better path forward than the one that Speaker Boehner put forth.

So it's a better path forward for the reasons that I explained earlier. It's cuts that have already been agreed to. It removes the cloud of uncertainty. And it's something that we can get done right now.

BALDWIN: I know we are all looking at that final date, August 2, Stephanie.

CUTTER: Right.

BALDWIN: It's the official deadline from the Treasury.

But the writing of the legislation certainly takes time.

CUTTER: That's right.

BALDWIN: They can't exactly wait until Monday night, right?

CUTTER: Exactly.

BALDWIN: So I'm hearing it's this Wednesday night is the night that this compromise is planning to be voted upon, agreed upon. Is that the correct night? Is that really the real deadline here, Wednesday? Or is it earlier?

CUTTER: Well, you know, it's probably last Wednesday.

(LAUGHTER)

CUTTER: But, you know, the -- all I can say is that the time -- time is running out. And we need to move forward on something that we can compromise on as quickly as possible.

Everybody knows that too many people in Washington like to wait until the last minute to get things done. In this, we're really playing with fire. We're talking about the nation's full faith and credit, full-faith credit.

And I was listening to your segment earlier and talking about the consequences to the American people of not raising our debt ceiling. And those are real consequences for people.

BALDWIN: Right.

CUTTER: If interest rates go up, that's the equivalent to a tax hike for every American, anybody who has a mortgage, anybody who has a car loan, anybody who has a credit card. That's things that people can't afford right now. They can't afford a tax increase when they're struggling to just make ends meet.

So, there are real-life consequences to what's going on in Washington right now. And the president's message last night is, let's find areas where we can compromise. Let's not use the nation's debt as a political football. Let's get it done.

BALDWIN: People who have the ARMs on their mortgage, definitely.

CUTTER: Exactly.

BALDWIN: Stephanie Cutter from the White House -- Stephanie, thank you.

CUTTER: Thank you.

BALDWIN: And also some new details. Let's leave debt aside just momentarily here, and I want to talk to you about what is happening in Norway.

We are learning some fascinating new details today about the suspect who says he slaughtered those 76 people in Oslo, including drugs he took before last Friday's attacks. We're also learning a lot about him through his alleged 1,500-page online manifesto, including the outspoken American voices who inspired him.

Coming up next, the man who is reading the entire manifesto. Did I mention this again, 1,500 pages of it? He's tweeting all about it. You don't want to miss what he has found inside.

That's next.

(COMMERCIAL BREAK)

BALDWIN: Norway is still very much reeling with grief and shock in the wake of the worst act of terrorism there ever.

Today in Oslo, police began a days-long process of releasing the names of the 76 people killed in a car bombing and subsequent mass shooting spree last Friday.

Today, four names came out and police will be releasing more each and every day as identities are confirmed and families are notified. Also today, defense attorneys for the man who has reportedly confessed to the killings saying they believe their client may be insane, but they're not quite sure that that will be their defense.

Some people who have seen the long manifesto believed written by the suspect have made opinions about Anders Breivik's mental state.

Jeff Sharlet has seen his manifesto. He's a professor at Dartmouth and writes extensively about religion and politics and culture. And he has been tweeting up a storm here, tweeting about his thoughts sort of incrementally about this manifesto as he's reading it.

And, Jeff, stand by for me, because I just want to share. If people haven't seen your tweeting, I want to share some of the tweets with our audience and then we will talk about some of them afterwards.

You write, "Scripture was never intended to be the believer's sole guide. Scripture and tradition belong together," some of this quoting Breivik. Then you say: "Cons say Breivik isn't Christian. Breivik says he took oath to defend Christian religion. What they mean is, he's a bad Christian. Agreed."

Jeff, talk to me about the parts of this manifesto that sparked many of those comments, and there are many comments you're making.

JEFF SHARLET, ASSISTANT PROFESSOR, DARTMOUTH COLLEGE: Yes, I think one of the big interesting debates that's coming out around this manifesto is here's what we have what appears to be a Christian terrorist. And I think a lot of people want to say well, this has nothing to do with Christianity. Of course, it's true it has nothing to do with the great traditions of Christianity that so many of us know.

But he clearly sees himself as a Christian. Early on in the manifesto, he says I'm not very religion, but by the end of it he says I've become more and more religious. And he starts citing a number of American Christian right leaders, specifically, for what he calls battle versus Christian inspiration in his fight.

BALDWIN: I want to, of course, continue the Christian point you're making. But it's also as you said, what's so striking to you about reading this manifesto is it's very -- he cites a lot of sources as American, everything from -- just rattle off for me, because I imagine a lot of our audience has not read this. People from Ayn Rand to plagiarizing, you know, militias in Tennessee to Johnny Cash?

SHARLET: Johnny Cash, he just cites the same Scripture versus from a famous Johnny Cash song.

But, you know, he's cleared bout the book is meant to be sort of giant collage. He begins it with a long edited book on political correctness by a prominent American conservative named William Lynn (ph) and a number of conservative contributors. He goes on with Robert Spencer, very prominent anti-Islam blogger. Of course, Pamela Geller, anti-Islam blogger. He quotes Rich Lowry, a conservative writer for "The National Review." Joseph Farah, he goes to another conservative writer for justifications, Christian justifications.

It's important to emphasize that that doesn't make these people responsible for what he did.

BALDWIN: Of course.

SHARLET: He pulled the trigger, not them. But he's very much coming out of an American milieu.

BALDWIN: It's an American milieu and it's also very easy, you know, since this whole thing unfolded on Friday, just call him, let's just label as mad man. I mean, he's bombing his parliament building, he's gunning down children, he's disguised as a police officer.

What issue do you take with the fact that a lot of people just call him a mad man?

SHARLET: You know, I'm not a psychologist. What I think -- what happens when we focus on the psychological condition of this is we don't deal with the fact that he's a political actor. And he represents a growing constituency in Europe and the United States.

People who wouldn't go as far as he does, but a number of people have come out. Brian Fischer of the American Family Association has said, well, the manifesto is perfectly accurate. Pat Buchanan has put out a defense of the manifesto.

So when we just dismiss him as a madman, we don't really engage with the problematic politics that are informing this. Whether, you know, his legal defense, whether he goes to an insane asylum or prison, the rest of us who are left picking up the pieces need to really deal with the fact that this is coming out of a very, very virulent string of hate that can't be just ignored as insanity.

BALDWIN: And to that point, you k now, I think you go on to say that he and, including these different sources, he's deeply invested in the values of Christianity. Though at the same time if you're Christian and watching, you don't have to be Christian to know the Ten Commandments, thou shall not kill.

SHARLET: And he is invoking another Christian tradition. A good part of the manifesto is dedicated to quoting sources, many of them American sources, contemporary anti-Islamic American sources defending the Crusades, saying that there is a righteous, a righteous cause. I mean, some of us have heard that he sees himself as a modern day Christian knight and in the defense of Christendom. He's sort of invoking his idea of just war theory.

BALDWIN: A modern day Christian knight?

SHARLET: Yes, and what's really frightening and we don't know how true this is, he talks about meeting with some Serbian war criminals and representatives of nationalist movements from other European countries. And one American couldn't be there, and formed this little society. His travel records show that he did travel to the place where is he said he met them and so we really want to, you know, make it as the Norwegian, the British police are, looking very closely, are there other people who are willing to take that awful step and turn their hatred into violence. BALDWIN: He talked about -- I know one of his mentors, British mentor. I mean, that is the question and that is the fear, how many other people their share these same beliefs and if, anyone at all helped him carry this out. Jeff Sharlet, thank you very, very much for coming on. Fascinating discussion there that you're reading this 1,500 page manifesto.

SHARLET: Thanks, Brooke.

BALDWIN: Coming up next, friends and family say farewell to Amy Winehouse. As the music world still is grappling with her death. Plus, Amy's father is saying he will do to honor her.

Be right back.

(COMMERCIAL BREAK)

BALDWIN: I'm Brooke Baldwin. Welcome back here. If it's interesting and happening right now, you are about to see it. "Rapid Fire" -- let's go.

Beginning with this -- friends and family gathered to say goodbye to singer Amy Winehouse today. Her funeral and cremation was held in London, and a formal cause of death is expected to be released in October. The singer had battled drug and alcohol addiction and her father, Mitch Winehouse, released a statement today where he said he hoped to start an Amy Winehouse Foundation. It would help with things she loved the most, that being children and horses, but also those who are struggling with substance abuse.

Take a look at this billboard with me. Yes, those are hot dogs sticking out of a cigarette back. And it says, warning hot dogs can wreck your health. The billboard is sponsored by the Physicians Committee for Responsible Medicine. And this group is claiming that research shows eating one single hot dog a day can increase your colorectal cancer risk by 21 percent. The billboard is near the Indianapolis Motor Speedway where more than 1 million hot dogs were sold just last year.

And take a look at this catch. This is a 650-pound shark, yikes! Caught up in east coast of Florida -- took a group of fishermen more than two hours to reel this guy in, 13 feet long. It's a thresher sharks. If you're familiar with the shark genre and that was no easy task. These treasure sharks are the world's eighth largest shark.

To Utah now, a bit of a mystery here, who is this guy? Well, that's what they're trying to figure out in this jail. He's been locked up in Utah for more than three weeks and he won't say who he is. He was arrested at the beginning of the month for trespassing in a police parking garage.

Police cannot find any information on this man. They even checked his fingerprints in a state database but go nada. Now, they're asking for help from the FBI and you, the public.

In Australia, a kangaroo is no match for a 94-year-old grandma. Phyllis Johnson is recovering from her smackdown with a red kangaroo. Her weapon -- a broom. She says she was hanging clothes on a line Sunday when a kangaroo showed up and just knocked her down to the ground. She grabbed the broom, hit him a couple of times, slowed him down, and that so she could make it to the house to call police. They used pepper spray to subdue the kangaroo.

McDonald's Happy Meals is getting healthier. The fast food is cutting about 20 percent of calories in its Happy Meals so there will be fewer French fries and more fruit and veggies for your kids. The changes begin in September and will be offered in all 14,000 restaurants come next April.

Prices will stay the same. The meals will still include a free toy. So, your kids still get that. But all this comes after several California municipalities passed laws stopping the free toy giveaways and unhealthy restaurant meals for kids.

Straight ahead: he's accused of making unwanted sexual advances on a teenage girl. His campaign staff says he needs psychiatric help. Now, today, a surprise announcement from this seven-term congressman.

Paul Steinhauser is standing by. He's got that and more, next in your Political Ticker.

(COMMERCIAL BREAK)

BALDWIN: Time now for your "CNN Equals Politics" update. Let's go to deputy political director Paul Steinhauser with the latest news off the Political Ticker.

And, Paul, we know that is going to be the debt. We heard last night from the president, we're watching. We then heard the response from Speaker Boehner. But what do Americans want? What are you hearing?

PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Brooke, they want compromise. We've been hearing it over and over. We got a brand-new poll but it's the same story. Americans want a compromise.

This poll by Pew Research Center out today. Check out these numbers. Should your lawmaker compromise even if it goes against their principles when it comes to the debt ceiling or should they stand by their guns? Stand by their principles even if it means that a government default. Look at that -- 68 percent. Nearly seven in 10 say compromise to avoid a default.

But go to the next number. This is interesting. There is a bipartisan divide. Look at that, Democrats overwhelmingly say compromise. But the number goes down a little bit for independents and it goes down even more for Republicans. And among those who call themselves Tea Party Republicans, look at that, only one in four say compromise rather than avoid government default.

Our own CNN poll had the same numbers last week and just about every other poll showing the same thing. BALDWIN: Topic number two, we're talking a little bit about, what, seven-term Oregon Congressman David Wu. He's now saying he will resign because of all this, you know, pressure that's been mounting. How will this play within the Democratic Party?

STEINHAUSER: I think in a way this is almost a relief to the Democratic Party, at least the national Democrats. Remember, Wu is a congressman out of Oregon's first congressional district. This is part of Portland, some of the other areas around Portland. And it's a pretty heavily Democratic district.

But you know what? A source on the GOP said told me if Wu had stayed in, with all that baggage, they may have had a shot. Now that Wu is out, even the Republicans who I talked to off camera, they say they kind of hint, this is -- it's not going to happen. This is a Democratic seat. Wu put out a statement today saying, I cannot care for my family the way I wish, while serving in Congress and fighting these serious allegations. The well-being of my children must come before anything else. Wu says he'll resign when the whole debt ceiling crisis is over, Brooke.

BALDWIN: Paul Steinhauser, with always the latest news off the ticker. Paul, thank you very much.

Coming up next here, another casualty of the shaky economy, why your local post office could soon be closing its doors.

Also, a shocking new report out today. Why black and Hispanic Americans are faring much worse in today's economy. We'll be right back.

(COMMERCIAL BREAK)

BALDWIN: Veterans are meeting with the White House staff today. Barbara Starr has more on that. Plus, nearly 3,700 post offices may close, Allan Chernoff standing by with those details. Let's play "Reporter Roulette," shall we?

Let's begin with Barbara Starr, live for me at the Pentagon.

Barbara, as we talk debt here, and we all know the deadline, August 2nd here. If it doesn't get resolved by next Tuesday one of the first to pay the price will be our nation's veterans. What is the latest on this?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, Brooke, at this hour a number of veteran's advocacy groups are at the White House getting a briefing about what will happen to America's veterans if there is not an agreement to raise the debt ceiling.

These veterans groups tell us they started receiving phone calls late last night, asking them to come to the White House. The veterans of foreign wars, the American Legion, the Iraq Afghanistan Veterans of America, the Disabled Veterans of America, all the groups we know so well, meeting at the White House at this hour. They are very concerned that their veterans, especially disabled veterans, will lose their disability checks and their benefits from the Department of Veterans Affairs if this is not resolved.

And I have to tell you, tomorrow there will be a virtual online march, a virtual protest against Washington. It is being organized by the Disabled American Veterans. If you want to see more about what's going on, on line with America's veterans and this situation in Washington, go to DAV.org, Disabled American Veterans. They are there are already some videos and messages posted by veterans, expressing their concern about this economic crisis, Brooke.

BALDWIN: So they are most definitely speaking out. DAV.org. Quickly, Barbara, what's the back story on them going to the White House today? Did the president say it's important enough for them to have these men and women come? Or did they shout loud enough.

STARR: Well, I think it's a combination of both. But the bottom always, as it is in these things, Brooke, isn't it, is politics. This is a very significant voting bloc whether for the Republicans or the Democrats. And the level of concern now rising in the veterans community is making their voice heard. That is something both the White House and Capitol Hill knows full well and they are going to have to deal with the veterans if this is not resolved, Brooke.

BALDWIN: Barbara Starr, thank you very much at the Pentagon.

Next, on "Reporter Roulette" Allan Chernoff at the New York Stock Exchange for us today.

And Allan, the U.S. Postal Service planning to close nearly 3,700 branches nationwide to erase a $20 billion revenue gap by 2015. Will this actually help save money? I have to imagine yes. So how much?

ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: Yes, it will save money. It won't save all that much, but $200 million. That is certainly a significant amount. Of course, the Postal Service is suffering because people are paying their bills, and sending letters, using e-mail instead of what we now call snail mail.

The postal service says that those 3,700 locations are mostly in smaller communities and that they have so few customers that the employees are averaging less than two hours of work per day, and that the average sales are less than $50 a day. You can go to USPS.com. Click on "Newsroom" to see if your local post office is included.

And by the way, Brooke, six locations are in Atlanta. I imagine they're a little busier than two hours a day for the employees.

BALDWIN: I imagine so. But let's say, I guess, if you are in Atlanta, some of these more rural areas, rural towns, if you are losing a post office, you want to mail a package, you have a P.O. box there, what do you do?

CHERNOFF: Well, you are going to have to drive to the next closest location, but for very basic services, if you just need to buy stamps or send a package, well, then the Postal Service has come up with a new alternative. It is actually in a way, an old alternative, a village post office located in perhaps a local business, a pharmacy, a grocery store. They used to do that quite a bit. And by going back to this concept, the Postal Service should be able to save some money, Brooke.

BALDWIN: The past is new again. Allan Chernoff, thank you so much.

Let's go to the other coast, Sandra Endo, in Los Angeles. Finally, here on "Reporter Roulette."

Sandra, let's talk about this study here. It is by the Pew Research Center. It says that many black and Hispanic American households are faring worse in the recession than white households. Why the disparity?

SANDRA ENDO, CNN CORRESPONDENT: It's really all about where you put your money. And so many people invest a lot of their money into their homes. While the housing market here, especially out in the West took a hard hit. And that is the biggest reason the Pew Research Center study says there's such a disparity in household wealth.

Take a look at this. According to the study, the median household income, or actually wealth, among Hispanics fell the most, 66 percent from 2005 to 2009. Black households suffered a 53 percent drop in network and whites, 16 percent. The study also shows, Brooke, that the median wealth of Hispanic households in 2009 was $6,325, $5,677 for African-American families, compared to around $113,000 as the median wealth for households in white families in 2009. Now it is important to note also that Asian households also took a hit. They actually had a top ranking when compared to white households and they dropped from just over $168,000 in 2005 to around $78,000 in 2009.

Keep in mind, this is not income per se. It's household wealth, which means you take a family's assets, their house, their cars, savings, and deduct any debt, loans, credit card debt, and that's how you get that number. So clearly, a lot of people hurting out there, Brooke.

BALDWIN: We have some sound. Because we can hear from people themselves who are hurting. In fact, there are some Hispanics we'll hear from who explain why they think their community is faring poorly. Let's listen.

(BEGIN VIDEO CLIP)

GERARDO ASCENCIO, NATIONAL ASSOCIATION OF HISPANIC REAL ESTATE PROFESSIONALS: As opposed to other white families, or other black families, Hispanic families, we're not very diverse in their portfolios. Two thirds of their entire wealth was just put into the family home, in terms of real estate. So it's no surprise, by that going down, with plummeting equities, and with the erosion of sales prices all across the nation, we were hit the hardest.

(END VIDEO CLIP)

BALDWIN: So, is this only reason for Hispanics being hit so hard economically, Sandra?

ENDO: Well, keep in mind, Brooke, the job market is so bad. And Hispanics really make up a lot of the job market when it comes to construction jobs. And again, there you heard, a lot of Hispanic families really trying to strive for the American dream, being a homeowner, they put a lot of investment into their homes. Now, when you think about the geographic demographics here, there's so many here in the West, here in California, Nevada and Arizona. That's why you see a lot of the disparity as well.

But also African-Americans who are faring poorly in this study, that is because the unemployment rate among African-Americans is the worst at over 16 percent.

BALDWIN: Sandra Endo, live for me in LA. Sandra, thank you.

That is your "Reporter Roulette" here.

Coming up next, a hit and run accident killed her four-year-old son, and a drunk driver was charged. He spent six months in prison, so why is this Georgia mother being punished as well. She was in court today to hear her fate. Now she is speaking out. Sunny Hostin is on the case. She will join me next. Stay right here.

(COMMERCIAL BREAK)

BALDWIN: A Georgia mom, who could have gotten more prison time than the hit and run driver who killed her son, will not be spending any time behind bars. It is because the judge sentenced Raquel Nelson to 12 months probation and 40 hours of community service. She was convicted earlier this month of second degree vehicular homicide, and two other misdemeanors in the jay walking accident that killed her four-year-old son.

Now she initially faced up to 36 months in prison. That is a sentence six times longer than the time served by the driver who killed her son. And that is why we are talking about this today. It is "On the Case." Sunny Hostin is back.

Sunny, nice to have you back. Let me begin with this. We know the judge offered Nelson the opportunity to seek a new trial. That's pretty unusual. Why would the judge offer to do that?

SUNNY HOSTIN, CNN LEGAL CONTRIBUTOR: It is unusual. My only guess, Brooke, is that this judge agrees with all of us this was a miscarriage of justice here. A woman loses her four-year-old child to a drunk driving incident, really, because this was someone already convicted of this crime two times before, someone who admittedly drank alcohol, consumed pain medication before getting in the car and apparently was partially blind in one eye. That's the person that committed tease crimes.

And then you put someone else on trial -- the actual mother who lost her child? So I can only guess that this judge tried to make right somehow because I think we're all just so outraged by the fact that this woman was even charge. My question is who made the charging decision, Brooke? Who decided to bring this case forward and does that person still have a job? Because if I were the prosecutor, the head prosecutor in this office that person would haven't a job anymore.

BALDWIN: I think we should back up, Sunny, and explain this detail. That this mother with her children, she was jaywalking, she got off at a bus stop. Her apartment complex was off the street.

She would have walked a third of a mile down the road in order to actually hit the cross walk so that is one part of the story. And my next question then is did prosecutors ever really want her to get prison time? I mean, they've seen reports that they never actually wanted her to serve time.

HOSTIN: Well, we see those reports, Brooke, but there's this thing called prosecutorial discretion and you can choose as a prosecutor to bring a case or not bring the case. The prosecutors at sentencing certainly said, you know, we're just going to let the judge determine what time she's going to get, if any.

But I really think that's almost a copout by this prosecution because they chose to bring the case. And typically as a prosecutor if you going to bring a case, you want to bring a case that has merit and you want to bring a case, if it has jail time, you want that person to serve all that jail time.

So I think it's a copout that we're hearing all these reports, prosecutors didn't really want her to get jail time because they prosecuted her on three misdemeanor convictions. So I think she faced up to about 36 months in prison.

BALDWIN: She did. Six times that of the hit and run driver who killed her 4-year-old, but she also, you know, she talked to the "Today" show. She said she was trying to get home before dark because I mention the crosswalk was about third of a mile away, just too far away.

She had her little one with her and she said the jury might not have understood what her situation was. She had no car. She's a single mom. She said she wasn't trying to break the law, but wanted to get home. Is that part of the story here?

HOSTIN: I think it is. I mean, is it about the haves and have- nots because if you look into this story, you know this is a single mother, a college student, three children. She had been shopping for groceries and also for birthday party supplies, a good mother.

And this crosswalk was very -- the crosswalk was very far away from the bus stop. And so many residents of this apartment complex had complained about the fact that the nearest crosswalk was so far away.

I think certainly that picture wasn't painted for this jury because again when you think about the fact that a woman lost her child and then gets prosecuted as a result of it, really is, what I would say is a miscarriage of justice.

BALDWIN: Sadly and I've covered stores like this, you know, after story like this then they put the crosswalk in, right?

HOSTIN: Exactly, exactly.

BALDWIN: Sunny Hostin, thank you so much. If it seems like cupid has given up on you, maybe it's time for a change. Perhaps a move, to travel maybe to some of these top cities for singles. You want to travel on leisure's top cities for singles. So where is the hot spot for the single guys and gals?

Apparently at number five is Chicago. The windy city's bustling bar scene earned rave reviews among singles. Coming in at number four, New York from the east village to the meat packing district and everywhere in between.

The number three best spot to be single in America, Las Vegas. Vibrant night life, a lot of unattached ladies and gentlemen scoring high among those looking for love. So where are the top two cities for singles deal? Do you live there? Can you guess? After the break.

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BALDWIN: Single and ready to mingle you may want to consider making a move to one of these top-rated cities for singles according to "Travel and Leisure."

Here we go, rounding out the number two spot, it's pretty cool town, Austin, Texas, singles making their own sweet music in the live music capital of the world. And what could it be? The number one city to be single is voila, New Orleans, thriving social scene, awesome spot for music as well. Great food, great people. Making it easy for singles to look for love and find it in the big easy.

And for Halloween die-hards. It's never too early to go start costume shopping. No custom is too great. No topic off limits. You got to see this. You know, it's only a matter of time, folks. Casey Anthony Halloween mask. There you go. The mask on sale right now on eBay. Kind of scary. Look at her eyes.

We checked the current bid just a couple of minutes ago. It was up to $450 among more than 40 bidders fighting for this thing reportedly less than 10 masks in existence. Certainly one way to get some attention this Halloween.

And have you ever heard someone say they would die without their cell phone? Well, this California man means it. After an alleged scuffle with gang members, he said the phone fell into a drain and he reportedly tried to go after it head first, couldn't get out.

Police were called and discovered two legs kicking and screaming. He was OK. They called firefighters who pulled him out after even stock looking for his cell phone down a drain, sitting there 40 minutes. I mean, I know your cell phone is important, but come on now.

"THE SITUATION ROOM" a couple of minutes away with Wolf Blitzer and Wolf is always joining me from a preview.

Wolf, I read your blog here in between commercial breaks. You make a good point. Let's all hope in terms of these debt talks and negotiations that there are some talks happening behind closed doors.

WOLF BLITZER, HOST, CNN'S "THE SITUATION ROOM": Right now, maybe lower level, but not necessarily at the highest level between the president, the speaker, and the senate majority leader. I don't see evidence that they're taking place at that level.

Staffers probably are talking amongst themselves. But it's a very worrisome situation. My interview with David Plouffe, the president's senior adviser coming up right at the top of the hour.

I think you'll be interested, by the way, Brooke, thanks very much tweeting about my blog. It's gotten a lot of feedback. I think all of our viewers should be following @brookebcnn. You do a terrific job on Twitter.

BALDWIN: Thank you very much. So Mr. Plouffe, who else coming up on "THE SITUATION ROOM?"

BLITZER: We got Barbara Mikulski, she's a liberal Democrat from Maryland. Like a lot of liberal Democrats, they're very worried if there aren't any tax increases on the wealthy, the millionaires, the billionaires, the corporate jet owners, the burden is going to fall on the middle class, the elderly.

She's really worried about that and so many other Democrats are. We also have a conservative Republican, Jim Jordan of Ohio who's broken ranks with the Speaker John Boehner over the latest plan. He says it's not a good plan and he also doesn't think they have the 217 votes necessary to pass it in the House of Representatives.

The bottom line right now, I hope it changes, Brooke, and you read my blog. This is a mess right now, but it's not just a mess. It's a mess with extraordinarily significant consequences for all of us. All of us right now. So we've got to watch this really closely.

BALDWIN: We are. We are. Wolf, thank you so much. We'll see you in five minutes' time. But coming up next here, Glenn Beck's strange fascination and the controversial comments that has lots of you out there talking. Joe Johns has been digging on this story all day long. He joins me next. Stay here.

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BALDWIN: He is no stranger to controversy, Glenn Beck. Joe Johns, what did he say?

JOE JOHNS, CNN SENIOR CORRESPONDENT: Well, you know, Glenn Beck has said a lot of stuff, sort of going one ear and out the other. But this time it's a little different. He was on the radio and he was talking about the political summer camp, which is affiliated with the ruling Labor Party in Norway where most of the 76 victims in the Norway massacre were killed and then he goes off on this tangent comparing this camp to the Hitler youth. So check out what he said.

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GLENN BECK, "THE GLENN BECK SHOW": 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.

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JOHNS: Now, he's gotten slammed for this because think of what he's doing. He's comparing victims of a horrible massacre in Norway to an anti-Semitic paramilitary organization of the NAZI party and that's just one level.

But on another level, he clearly suggested there's something wrong with a camp for young people that focuses on politics. You know, that's, that's another thing that's just sort of a little bit beyond the pale, Brooke.

BALDWIN: Also, Joe Johns, there are a lot of youth camps in this country that very much are called political, some of which are aligned with Glenn Beck himself.

JOHNS: Right, right. In case you didn't know it, and apparently there are some people out in the blog sphere who don't know it because they've been supporting what beck say. For the record, there are a bunch of programs that you can call political camps, some educational, some nonpartisan, some aren't.

But here's the thing, the CNN wire staff reports that politically oriented camps are being organized in several states by the 9/12 project, which is an organization founded by Glenn Beck himself in 2009.

The Colorado 9/12 project hosted a so-called patriot camp for kids in grades 1 through 5 earlier this month featuring programs on, quote, "our constitution, founding fathers, the values and principles that are the cornerstones of our nation."

In August, the Danville, Kentucky, chapter was holding a vacation liberty school that organizers say will help your children understand where we came from, understand where we went wrong, understand where the fork in the road was and which path we should have taken and so on. We reached out to the Glenn Beck organization --

BALDWIN: I was going to ask, yes.

JOHNS: -- to ask about this. Haven't heard back. So, you know, in fairness to him, he also called the shooter in Norway a madman and compared him to Osama Bin Laden. Could have been fine if he left it there, but he didn't.

BALDWIN: But he didn't. Joe Johns, thank you so much. And thank you for watching. Now to my colleague Wolf Blitzer, "SITUATION ROOM" starting right now, Wolf.