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Vote on Boehner Debt Plan Today; Debt Fears Drag Down Wall Street; Perry Gives More Signs of White House Bid; Heaviest Rain in 100 Years; Tea Party Pushes for Deeper Cuts; Constitutional Powers Versus Default; Anger Over 9/11 Cancer Decision Dolphins Protecting Our Shores; What to Do with Your 401(K); Debt Limit Doozies

Aired July 28, 2011 - 09:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: It's the top of the hour. 9:00 a.m. actually on the East Coast. Glad you're joining us.

Well, it's a pivotal day in the debt showdown. A vote in the House and a huge test of just how divided the Republican Party really is.

And good news on the U.S. jobs front. Initial unemployment claims dropped below 400,000 for the first time in three months.

And al Qaeda's new leader releases his first taped message since succeeded Osama bin Laden. Ayman al-Zawahiri rips Syria's president and praises the protests trying to oust him.

OK, could make or break the debt crisis and I know, you're saying I've heard this before. But here's the deal today. Lawmakers are not mincing words as we have less than five days to raise the debt ceiling or risk defaulting on government bills.

Today the House is due to vote on Speaker John Boehner's plan. And as his own party holds the majority of votes he's really getting frustrated with the divisions that threaten its passage.

So in a closed door meeting, Boehner actually told the feuding Republicans, quote, "Get your ass in line." And then veteran Senator John McCain. He blasted fellow Republicans quoting an article that disparage, quote, "Tea Party hobbits."

Joe Johns is in our Washington bureau. Ali Velshi is in New York, watching the markets.

OK, Joe, let's begin with you. Boehner not too happy obviously. I mean, first, you've got the president that storms out of a meeting weeks ago. Now you got Boehner using a harsh word, shall we say, to try and, you know, get these votes to win the House.

JOE JOHNS, CNN SENIOR CORRESPONDENT: Yes. And you know, this is a very high-stakes game. And it's obviously the most important point. In Speaker Boehner's speakership, you know, the thing about this is -- the question, does he have the votes?

You can pretty much bet that if they do go to the House floor as expected, he and his leadership team will believe they have the votes. That's the general rule on Capitol Hill. They are meeting this morning with the rank-and-file, obviously, to go over all this again and to try to shore up any support.

They certainly won't get all of the Republicans in the House of Representatives. And I guess the only other thing that you really have to say at this time is that he got an extra day to try to shore up some support and it sounds like he put that to good use.

PHILLIPS: All right. Well, Ali, you know, markets have fallen four straight days now. Tanked nearly 200 points yesterday. You know, we're probably going to see more losses today.

ALI VELSHI, ANCHOR, CNN'S AMERICAN MORNING: Yes. Now you know what just happened. You just started the top of the show with the news that the unemployment claims for last week came in better than expected. Fewer claims than expected. That turned futures up so at least the market is concentrating on a bunch of things, earnings reports, job numbers and this.

And it's not fully dominated by this debt conversation, but as Joe says, if they go in for this vote and they don't get it, I'm going to be watching the markets very closely. Right now, investors around the world are betting that Washington knows what's at stake here, that all the senior members of leadership in all the parties understand that whatever you want to do you've got to increase the debt ceiling.

Now what John Boehner has got is a bunch of hard-liners there, hard-line conservatives, Tea Party influenced freshmen and others who are taking a hard position. They may not compromise. If they manage to defeat this vote today, this is going to be a big, big problem for markets. If they don't, you may see markets continue to tread water until there is a solution to this.

Now, remember, Speaker Boehner's plan is not likely one that is going to pass the Senate. Not likely one that's going to get past the president. But the bottom line is if there is some sense that Boehner has better control over his members you may see markets allowing everybody a little more time.

Right now markets are still largely relaxing but they're ready to move if this doesn't go the right way.

PHILLIPS: OK. Ali, Joe, thanks, guys.

And at the bottom of the hour, we're going to go to Wall Street for the Opening Bell, of course, then answer a question many of us have right now. Should we take our money out of the stock exchange and if so where do we put it. We're going to actually talk to a financial analyst about that.

CNN has obtained dramatic new amateur video taken moment after Friday's bomb attack just outside the government buildings in Norway. They were shot by Johan Christian Tandberg. He works in real estate in Oslo and was actually driving through a tunnel beneath the city's government plaza when that bomb went off. Eight people were killed. And Tandberg recorded dazed survivors hoping that the video might help police. He described the scene earlier on "AMERICAN MORNING."

(BEGIN VIDEO CLIP)

JOHAN CHRISTIAN TANDBERG, VIDEOTAPED AFTERMATH OF OSLO BOMBING: First few minutes, people were in shock. It was very quiet. Totally silent the first three minutes. Then we started to hear some screaming as people got -- people lost their hearing because of the bomb. And so they couldn't -- some of them were not able to hear and some of them were not able to walk, and some -- someone were very injured. And unfortunately, somebody also was dead.

(END OF VIDEO CLIP)

PHILLIPS: And also this morning, police say that the search for the victims of the shooting rampage near Oslo has ended.

The worst rains in 100 years has hit South Korea. Take a look at these pictures. At least 49 people have died.

And our Zain Verjee is following this out of London for us -- Zain.

ZAIN VERJEE, CNN INTERNATIONAL ANCHOR: Hi, Kyra.

The pictures are really unbelievable. Not in 100 years has South Korea seen rain like that. There was a lull just a short time ago, but it's coming down now. Just as hard and creating a really difficult situation for people in Seoul, as well as around the neighborhood.

There are about five neighborhoods were totally evacuated. Also you've got rescue workers out there. The police, the military. Everyone trying to find survivors, anyone who is missing but the rain is just making that a lot tougher.

There are about 2,000 houses, Kyra, where the power is totally out still. And also the roads themselves -- I mean, can you imagine the traffic chaos with a situation like this? There are two main roads in -- going into Seoul and most of it has been totally flooded and is just not able to be used by any vehicles at all. People are stranded. So many people can't get home.

It's a really difficult situation, Kyra, and these are some of the images that we are beginning to get and you can see people just floating on boards down the street like that and just trying to get by -- Kyra.

PHILLIPS: And search and rescue still ongoing right now. Zain, thanks so much.

VERJEE: Yes.

PHILLIPS: Well, Paul Steinhauser is in Washington with our political update now. Paul, more signs that Governor Rick Perry may toss his hat to the presidential ring? There's been a lot of people and others saying just do it already.

(LAUGHTER)

PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: I know, we keep talking about this, Kyra. But here it goes.

CNN has confirmed that a bunch of conservative activists for New Hampshire -- New Hampshire now the state that has the first primary -- where are they going? Texas next week to meet with the one-time Texas governor.

Also you want some more signals? Next week he's going to meet with more financial backers. He's been doing that to see if the money is there for a race for the White House. Tomorrow he speaks to a conservative conference, a gathering in Denver, Colorado.

And hey, remember those two polls? The two most recent polls out there of the battle for the GOP nomination. Where is he? Second place. So we're definitely going to keep our eyes as we have been on Rick Perry.

Let's talk about Sarah Palin, the former Alaska governor, John McCain's running mate last presidential election. Just when it seems she's kind of falling out of the spotlight again, boom, she's back in the spotlight. We found out yesterday, guess where she will be Labor Day weekend? Iowa. Iowa, of course the state that holds the first caucus in the race for the White House. She'll be the keynote speaker at a Tea Party rally there.

Palin says, of course, she will have her decision by -- sometime in September whether she will or won't run for the White House -- Kyra.

PHILLIPS: OK. Still waiting to hear from her and Rick Perry. Meanwhile, kind of an awkward moment for Newt Gingrich and it's all about a T-shirt.

STEINHAUSER: Boy, just what his campaign doesn't need. There's been enough trouble already, right? But the former House speaker in Atlanta, Georgia, down your way yesterday, talking to reporters after he had a campaign event and one of them asked -- one of the reporters asked Gingrich to hold up a T-shirt, a Newt Gingrich 2012 T-shirt.

Well, part of Gingrich's campaign is "Made in America", emphasized building up manufacturing. The reporter asked Gingrich, is that T-shirt -- was it made in El Salvador? Kind of left him speechless. He said, "I have to ask the folks who ordered this. I don't order."

An awkward moment, I guess, to say the least, for Newt Gingrich. Just what he doesn't need -- Kyra.

PHILLIPS: Yes. All right, Paul. Thanks. And your next political update in just about an hour. And of course you can always go to our Web site, CNNPolitics.com 24/7.

He's one of the loudest voices calling for deeper cuts in a debt ceiling deal but now Republican Joe Walsh is being told to zip it by his own party. He fires back. That's just ahead.

Also coming up, reaction to the royal sister-in-law still going strong. Now Pippa Middleton is the subject of a special on American DT.

(COMMERCIAL BREAK)

PHILLIPS: Checking stories "Cross Country" now.

It looked like a scene from a movie but it was actually real life. Talking about this riot just outside Grauman's Chinese Theatre in L.A. last night. Thousands of people try to crash the jam-packed movie theater of "Electric Daisy Carnival." People arrested two people. No injuries reported.

Well, traffic is snarled near Little Rock, California. Dozens of rail cars jumped the tracks yesterday. Few had hazardous materials. People living nearby were all evacuated.

In Frankton Township, Indiana, a lot of angry parents after local school officials announced a near $50 a month bus fee just to take kids to and from school this year. The superintendent says it's necessary after voters shot down a referendum to raise taxes.

As you probably know the bickering over the debt ceiling isn't just between the Democrats and Republicans any more. Senator John McCain took a shot at members of his own party who are trying to hold up a deal in Congress.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R), ARIZONA: To hold out and say we won't agree to raising the debt limit until we pass a balanced budget amendment to the Constitution is unfair. It's bizarro. And maybe some people who have only been in this body for six or seven months or so really believe that. Others know better.

(END OF VIDEO CLIP)

PHILLIPS: Illinois Congressman Joe Walsh is one of the Tea Party Republicans who has been pushing for much deeper cuts. And I had a chance to speak with him just a few minutes ago and asked him what he thought about McCain's comments.

(BEGIN VIDEO CLIP)

REP. JOE WALSH (R), ILLINOIS: The problem, Kyra, is that folks like Senator John McCain have been in this town for too long and they are the ones who have gotten in -- us into this mess year after year after year. I'm glad that I've only been here six to seven months because I reflect where a lot of American people are. Guys like John McCain have been here too long and almost insulting for him to say that.

Look, enough with the insults. I wish this town would simply step back and take a breath. Your profession has got us all atwitter. The administration got us all atwitter. Let's make sure that we solve this crisis and solve it right.

PHILLIPS: At the same time, Americans would look to you and say, you're holding us hostage. You know, we're talking about the debt ceiling here. Republicans have voted for this in the past over and over again. So why fight it now?

WALSH: Kyra, that's actually a fascinating question. Why the big deal this year about the debt ceiling when, as you say, it's come and gone numerous times over the years? Here's why. The American people have woken up, A. This administration has spent money like we've never seen the last two and a half years and we are falling off a financial cliff.

And unless we finally do something about this debt, we're placing on the backs of our kids and our grandkids, we'll never recover. And so folks like me came to Washington to come up with a solution, some sort of solution like balancing the budget, a balanced budget amendment, which will make sure we never get here again.

PHILLIPS: Economically, though, we have -- we were in horrible positions in the '70s and the '80s but it has never gotten to this point, the political bickering, the back and forth, you know, just days to go before this August 2nd deadline.

WALSH: Well, Kyra, I think a lot of the problem is that this president hasn't been serious for the last six months and so here he comes to us in the 11th hour to try to fix his mess. We're perfectly willing to fix the mess but he hasn't led.

I mean, everybody -- the administration has been trying to scare folks into this notion of default. Default is off the table. Nobody wants default. We are going to pay off our debt and we've got plenty of government revenues this next month to make sure we do.

I guess what a lot of House Republicans are arguing let's make sure we get this right.

I'm not obsessed with August 2nd, truthfully. I'm obsessed with making sure we solve this debt crisis. And if it takes us a few more days, let's do it.

PHILLIPS: Now, with all due respect, I've got a personal financial question for you, Congressman. You become a key player in this debate that's all about spending.

Now, we're seeing these reports coming through, "The Chicago Sun-Times," you've had your own financial problems. The claims you lost your condo to foreclosure. That you owe back child support.

WALSH: Yes.

PHILLIPS: With that out there now, are you concerned about your credibility in this debate?

WALSH: Kyra, look, I was probably the most openly vetted candidate on the planet. I ran as a guy who lost his home and had had financial struggles like a lot of Americans.

Absolutely not. This is where a lot of Americans come from right now. It's why they sent so many of us to Washington to do something about this because we're living this experience.

And, again, I'd end where we began. Senator McCain and folks like him who have been in this town for so long and have no clue as to the troubles Americans are going through right now, they don't understand this crisis any more.

PHILLIPS: Congressman, you're actually saying then that you're experiencing these troubles? I mean, the fact you can't pay child support?

WALSH: Well, again, Kyra, personal family issues that I'm going to fight -- again, I know that story just broke and it's interesting that it just broke. Right now, as I'm out there trying my best to fight this president and fight the Democrats and solve this debt crisis.

But, look, I'm the most openly vetted candidate in the world. I have had financial troubles and I talked about them throughout the campaign. This is where real America is.

(END VIDEOTAPE)

PHILLIPS: The vote on the Boehner debt ceiling plan is coming up a bit later today. And when that happens we'll have full coverage for you right here on CNN.

Coming up, Alex Trebek is on crutches after putting himself in a little jeopardy. We'll tell you what happened in his hotel hallway.

And her Sister Kate's name is on everyone's lips. But hers is on a lot of new moms lists. More on Pippa's popularity coming up.

(COMMERCIAL BREAK)

PHILLIPS: Let's hit some showbiz headlines for you.

Alex Trebek is hobbling around on crutches because he chased a burglar. The "Jeopardy!" host woke up to somebody poking around his hotel room the other night. So, he just took after them end up tearing his Achilles tendon.

(BEGIN VIDEO CLIP)

ALEX TREBEK, "JEOPARDY" HOST: The snap and the sound. I've played sports all my life. I called security immediately and gave them a good description of the woman and they got her.

(END VIDEO CLIP)

PHILLIPS: Pretty scrappy for a 71-year-old, Alex. This is the woman they busted. He's having surgery tomorrow.

Some mean machines rolling through Toronto, shooting scenes for "Total Recall." They've snarled traffic for a couple of days now. It's a remake of the 1990 Schwarzenegger flick. The new stars? Colin Farrell, Bryan Cranston and Jessica Biel.

And tattoo artist Kat Von D and biker dude Jesse James, well, they split up this week. She still sees him every day, though, on her rib cage. It turns out, Kat recently surprised Jesse with a big tat of his fifth grade school picture. And despite the breakup, she says, hey, no regrets and yes, she's going to keep.

Pippa Middleton made a big impression on the royal wedding on men and on moms.

Zain Verjee is here with the details of that.

No tattoos, though -- no tattoos for Pippa Middleton!

(LAUGHTER)

ZAIN VERJEE, CNN INTERNATIONAL CORREPSONDENT: No, no tattoos!

PHILLIPS: She's making news in other ways.

(LAUGHTER)

VERJEE: She is. Let me tell you, nameberry.com did this analysis of about 23 million pages to figure out what's the most popular girl's baby name and it turns out to be Pippa -- surprise, surprise -- the sister to Kate Middleton. She got all of the attention because of the royal wedding.

She is at number one. And what they are saying is that all of these other names here Elula, Hadley, Mila also are popular because they're saying, now, more than ever, it's celebrities, Kyra, that are having a huge impact on name selection.

I felt there was one name missing from here.

PHILLIPS: Yes, Zain.

VERJEE: And that was Kain, a combination of Kyra and Zain. Kain, that could be a good name. Or Zyra is my other suggestion. You could have used that right before you named your twins.

PHILLIPS: You know, Kain sounds like pain. So, we'll stay away from that. I don't know, Zyra sounds too much like zero. So, I don't know.

I think you're going to go back to the drawing board, Zain.

VERJEE: Well, you come up with a better one. Well, you come up with a better one.

PHILLIPS: All right. Well, don't forget the TLC special on Pippa, correct?

VERJEE: That's right. She's really, you know, become so incredibly popular. She's going to be TLC. It's a big special. So many people really want to see this.

And here in this country, too. She's just, you know, very popular. Her name is Pippa. That's kind of a nickname. And actual name it Philipa, which is the more formal verse of her name. But she is going to have this big TV special and it will be an hour-long look at the socialite to have tea with here in London.

PHILLIPS: There you go. By the way, what does Zain mean? I never have asked you that. Beautiful princess?

VERJEE: Zain means -- yes, yes, actually. No, it means to adorn. It's Arabic for adornment, to dress up.

What does Kyra mean? Is that Iranian?

PHILLIPS: Persian for sunshine. Yes. Something you do for me every day. You make me smile and make me very happy!

Zain, thank you.

VERJEE: All right, sunshine

PHILLIPS: Love fest moves on.

All right. Stocks on Wall Street tanked yesterday in the final hour of trading. That wasn't so good.

However, it might get better today. We are going to take you live to the New York Stock Exchange to get all of the details.

Also, this isn't Sea World actually that you're about to see. It's the front lines of defense right here on our American shores.

(BEGIN VIDEO LCIP)

KAJ LARSEN, CNN CORRESPONDENT: There is a 30-second where I thought I was going to make it through. Next thing you know, I was staring a porpoise right in the face.

(END VIDEO CLIP)

PHILLIPS: CNN's Kaj Larsen got unprecedented access to the Navy's program where they use marine mammals in the first line of defense.

(COMMERCIAL BREAK)

PHILLIPS: Checking top stories now.

Al Qaeda's new leader releases his first taped message since succeeding Osama bin Laden. Ayman al-Zawahiri rips Syria's president and praises the protests trying to oust him.

And CNN has obtained new exclusive video from moments after Friday's explosion in Norway. It was taken by a man who was driving through a tunnel beneath the city's plaza when the blast went off. He says people were shocked, bloodied, and dazed.

Forecasters say tropical storm Don could be near the Texas coast late tomorrow or early Sunday. A large part of Texas is under a tropical storm watch now.

Well, it's half past the hour, possibly approaching the point of no return in the debt crisis. Today, the House is expected to vote on a plan pitched by Speaker John Boehner, but divisions within his own party raised new doubts on its passage. And as you can see in our countdown clock, the federal government is less than five days away from possibly running out of money.

So, leave it to Washington to find a loophole. Some Democrats say that if time runs out, the president could save the government from default by tapping into his constitutional powers. One of the biggest arguments against that comes from the White House.

And that's where we find our Dan Lothian.

Dan, the White House seems pretty unwilling to budge on this option of last resort. Why?

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: That's right. Well, you know, first of all, this is not anything new. For the last few weeks, we've been reporting as a potential option the White House, the president and, in particular, invoking section 4 of the 14th Amendment which essentially would give the president -- or some believe might give the president the authority to raise the debt ceiling, to continue borrowing money without any dealing being done, without the approval of Congress.

But the president has pushed back on that saying that he has been told by his legal advisers that this is not a winning argument.

And, yesterday, during the briefing, Jay Carney, again, denied that this was even an option the White House was considering.

(BEGIN VIDEO CLIP)

JAY CARNEY, WHITE HOUSE PRESS SECRETARY: There are no off ramps. There's no way around this. There is no escape. And, you know, having an esoteric constitutional argument won't resolve the fact that our borrowing authority is due to expire on August 2nd and Congress has the legal authority and only Congress has the legal authority to extend that borrowing authority.

(END VIDEO CLIP)

LOTHIAN: So, again, what you hear there from Jay Carney saying that they are not looking to the 14th Amendment as a way out of this impasse, but rather believe that the solution lies in Congress reaching some kind of an agreement that will be in the long term good for the U.S. economy.

Of course, that clock continues to count down. There appears to be no deal or any compromise on the table.

So, it will be interesting to see if the White House continues to hold that line.

PHILLIPS: All right. Dan Lothian at the White House -- Dan, thanks.

Alison Kosik is at the New York Stock Exchange now with more details on your money.

So, Alison, a lot of talk about a possible debt downgrade for the U.S. government. So, what do you think everyday Americans should know right now when it comes to their investments? I think we can't talk enough about this.

ALISON KOSIK, CNN CORRESPONDENT: Oh, yes. You got that right.

You know what, for one, you know what? Don't get too caught up in the headlines that you hear every day. Try to keep your eye on the long term.

Now, that said, many traders, they are telling me you should expect the markets to take a short-term hit if the government debt rating is downgraded. You'll see more volatility. But you know what? Things will get back to normal.

Listen to the advice one trader gave me.

(BEGIN VIDEO CLIP)

KOSIK: What are you telling your clients?

UNIDENTIFIED MALE: Well, you know, right now, we're telling our clients, if you're in the market stay in and keep a close eye on things. But if you're not, stay on the sideline. Just watch. There's no rush to get in the market at the moment. There's just too much uncertainty.

(END VIDEO CLIP)

KOSIK: So, basically, don't make any big moves right now. You know, as long as you're diversified, of course.

And you shouldn't try to time the market especially if it's your retirement accounts at stake. And remember, when it comes to these investments, Kyra, nothing is guaranteed. The bigger the risk, the more stand to lose. So, essentially it's all up to you, Kyra.

PHILLIPS: And then, you know, if the markets do tank in the coming weeks, it's just like the advice you got right there. We just have to kind of keep our eye on it and take it day-by-day. There's really nothing we can, I guess, plan for.

KOSIK: Yes, I mean, we don't have a crystal ball. You know, it really is all about keeping your eye on the long term.

And if you're worried, try to think back to September 2008 when Congress failed to pass that $700 billion dollar stimulus package. We watched the Dow plunged 777 points in one day. You know, our jaws dropped, we stopped breathing for a moment and watched markets continue to sell off after that, you know, when the economy tanked.

But, now, look, we're in a recovery and since that 777-point drop, the Dow is actually up 20 percent, so those who actually stayed in the market would have made back what they lost, Kyra.

PHILLIPS: Well, speaking of up, take a look at the numbers. Dow Industrials is up 10 points. I think that's the first plus I've seen this morning possibly.

KOSIK: All week.

PHILLIPS: Yes.

KOSIK: Exactly. And futures actually, stocks turned higher after we saw a report showing a big drop in initial unemployment claims. But you have to remember, the Dow is coming off that almost 200-point drop yesterday. One thing is definitely clear of seeing more pessimism here on Wall Street, and anxiety is definitely building over getting this debt deal done -- Kyra.

PHILLIPS: All right. Alison, thanks.

Jitters on Wall Street, uncertainty in your own investments. Just about 15 minutes from now, we're going to get some more financial advice and talk about your 401(k) and how to protect it, coming up.

Also straight ahead --

(BEGIN VIDEO CLIP)

JOHN MARSHALL, RETIRED NEW YORK POLICE DETECTIVE: I'm the lucky one, because I have health insurance. All of these other people have cancer and don't have medical insurance. You're pushing them aside.

(END VIDEO CLIP)

PHILLIPS: Wow. Emotions running really strong after 9/11 first responders learn that the government won't cover their cancer treatment. We'll have a live report straight ahead from New York.

(COMMERCIAL BREAK)

PHILLIPS: On September 11th, they rushed to Ground Zero and spent weeks picking through the ruins, risking their own health, looking for our loved ones. Now, many of those first responders have come down with cancer and the government still refusing to pay for their treatment.

CNN's Deborah Feyerick joining us with more from New York -- Deb.

DEBORAH FEYERICK, CNN CORRESPONDENT: Well, you know, Kyra, really, the problem is, even though it's been almost 10 years for doctors for the medical community, it's not enough time to develop actual scientific proof that exposure to Ground Zero toxins causes cancer. That's where the lack of evidence comes in. That's why cancers are not covered under the Zadroga Act -- and to the surprise of many who really were healthy on 9/11.

Now, the Justice Department is having these town hall meetings in New York City to explain the new Victims Compensation Act. But the main topic was the decision not to cover cancer-stricken first responders and those who were at Ground Zero and working and living in the vicinity of the pile, that massive burning debris.

Among those moving speakers, a man who says he spent three months working at Ground Zero and the Fresh Kills landfill where the World Trade Center debris was taken. Five years later, he was diagnosed with throat cancer.

(BEGIN VIDEO CLIP)

MARSHALL: I just think that this is an injustice to people who have cancer. I'm a retired police detective, was down there for three months. And I'm the lucky one because I have health insurance. All of these other people have cancer and don't have medical insurance. You're pushing them aside.

(END VIDEO CLIP)

FEYERICK: And a lot of people just feel ignored. But the decision not to cover cancer was made by the National Institute of Occupational Safety and Health. A doctor reviewed all the existing data and found no scientific evidence, no direct link, no fingerprint between exposure to the toxins at Ground Zero and the cancer.

The woman who was in charge of the fund told the audience they need to be patient, that other studies are coming out in 2012, and if scientists find a link between 9/11 and the cancer then they ultimately will be covered by the fund.

(BEGIN VIDEO CLIP)

SHEILA BIRNBAUM, SEPTEMBER 11 VICTIMS COMPENSATION FUND: It's an emotional thing and, you know, our hearts go out to people who have suffered cancer. But people suffered from cancer, all kinds of cancers, who were not exposed to 9/11. I think we have to wait and see what the medicine is going to tell us.

(END VIDEO CLIP)

FEYERICK: And, you know, the detective who you heard, Kyra, made a very important point. He said don't look at the data. Look at us. Look at us as people, because we are suffering.

Now, the rate of people with cancer is no higher than it would be otherwise in the particular age group. The only visible spike right now it's in blood cancer or specifically myelomas which develop faster than other types of cancer. None of this, of course, is any consolation, Kyra, to the people who were sick and who need that help right now.

PHILLIPS: It's heart-wrenching to hear their testimony and see them in the conditions that they are in. Deb, I'm glad you're following the story.

Debt crisis deepens. The stock market tanks. Should you do anything to protect your retirement investments right now? We are going talk to a financial analyst in about 10 minutes.

And it's not cute, dolphin tricks at Sea World. These are mammals at war. We'll tell you how they are protecting America's shores, just ahead.

(COMMERCIAL BREAK)

PHILLIPS: All right. Checking stories cross country now.

In Tampa, Florida, police believe someone watching two exchange students by hidden video cameras in their apartment. The women say that the sneaky cams were made to look like smoke detectors. Cops say they have suspects but no arrests so far in the case.

Weather is not OK in Oklahoma, but all three of the state's 77 counties are declared federal disaster areas due to the ongoing drought. Nine confirmed heat related deaths this summer and then yesterday in Tulsa, a new record high temperature topped at out 107 degrees.

People in Falmouth, Massachusetts -- well, they want to know why endangered leatherback turtle washed ashore dead yesterday. An autopsy on the six-foot, near 1,000-pound creature is set for today.

So, here's a question: when did Flipper become a mammal of war? I think the answer is when he enlisted -- he was enlisted, rather, by the U.S. Navy. The Navy is training marine mammals to protect American ships and harbors from enemy attacks.

And CNN's Kaj Larsen got unprecedented access to this once top- secret program.

(BEGIN VIDEOTAPE)

KAJ LARSEN, CNN CORRESPONDENT (voice-over): Playing the role of a terrorist in San Diego bay, I'm trying to evade a dolphin trained to find hostile swimmers.

UNIDENTIFIED MALE: He's not going to make it. She is going to get him.

LARSEN: Out of nowhere.

UNIDENTIFIED MALE: She's got him.

LARSEN (on camera): I got about, say, 50 meters from the ship behind me and then, boom! Came and hit me right here.

(voice-over): The dolphin hits me with a marker that alerts armed security of my presence.

(on camera): There is a three seconds where I thought I was going to make it through. Next thing you know, I was staring a porpoise right in the face.

Oh, just got me again!

Oh!

(voice-over): In a minute, she is back on her boat and getting some TLC.

(on camera): I guess my combat ship attack foiled again.

(voice-over): Undaunted, I try underwater with my scuba gear on. Here is what the camera on the dolphin saw.

Under water or on the surface, the dolphin finds me every time.

(on camera): So, how does she compare to, say, supposed you had a side scan sonar on the bottom of this boat? What's the difference?

CHRIS HARRIS, U.S. NAVY MARINE MAMMAL PROGRAM: She is able to pick out details about a object that we would only dream to have on side sonar. And she can do it at great ranges with 100 percent reliability.

LARSEN (voice-over): The dolphin is looking for a swimmer like me.

(on camera): So she's going to hit this ball right -- right here?

HARRIS: Yes, once she's -- once she's sure that that's a swimmer, there she goes. So she just touched that ball right there.

Now at this point, Kaj, we're going to have to get out of the way of the handler.

LARSEN: Yes.

HARRIS: He's going to go back in there and let her know, "Hey, good girl, thanks for keeping your eye out for us." He's going to let her know she did a good job and he is giving her the marker and there goes the marker. So now she is on her way, like a shot. As you know, you know it's a -- it's a pretty good little bump. LARSEN: Yes.

HARRIS: Let's watch and see.

LARSEN: That's one way to put it.

(END VIDEO CLIP)

PHILLIPS: Well, you can see Kaj Larsen's entire report. And of course other amazing stories, this Sunday night 8:00 p.m. on an all new "CNN PRESENTS".

And right after the break we're going to take a closer look at the debt crisis and its far-reaching impact. The markets tank, our stomachs churn. So should we be searching for safer options in our 401(k) investments? We'll talk to a financial analyst.

And don't forget if you're walking away from the TV it doesn't mean you have to stop watching, you can get CNN streaming live on your phone, computer, iPad. Just go to CNN.com/ and you can download -- actually, download the app. It's a new app and of course you're seeing what you just -- what aired, right?

But actually when you download the app you hit live TV right up here and your choice comes up. You press CNN NEWSROOM and after a few seconds, there you go. It downloads and you can take us with you anywhere you're going.

We will be right back.

(COMMERCIAL BREAK)

PHILLIPS: The debt crisis isn't just dominating Washington it's also sending ripples through Wall Street where investors have shown their fuzziness with four consecutive days of losses. So that has all of us wondering, should we be doing anything to protect our retirement nest eggs?

Greg McBride is joining us once again with some advice. He's a senior and financial analyst for BankRate -- BankRate.com.

So Greg you know, I know we shouldn't panic but it's easier said than done. So I've heard some analysts say, as a matter of fact, Alison Kosik talked to an analyst right down on the floor of the New York Stock Exchange. If you're in, stay put. If you're on the sidelines wanting to get in, hold off. Do you agree with that?

GREG MCBRIDE, SENIOR FINANCIAL ANALYST, BANKRATE.COM: Well, I agree with the first part of that. I think it's important to hang in there. You just got to buckle that seat belt a little bit tighter because the ride is very likely to get bumpy but you want to hang in there.

The people that pushed the panic button and sold a couple of years ago are regretting it. Now, you don't want to be on the sidelines if the market were to snap back and that's what could happen if they come to some agreement at the 11th hour or if we go into the default but it's short-lived. So you don't want to be out when you really should be in.

And if you're on the sidelines waiting to buy, hey, look. I think your ship is coming in because this very well may be your best buying opportunity of the year coming up over the course of the next week or so.

PHILLIPS: What if we're already in? Should we shift things around and if you say "yes", what are some shifts that you've been considering?

MCBRIDE: I am not a fan of making changes to long term accounts, things like retirement accounts, based on short term volatility. I think what you want to do instead, and you want to do this at any time, is ask yourself is the way my money is invested now, is that consistent with my long term goals and objectives?

If the answer to that is yes, then sit tight don't do anything. If the answer to that is no, well, then you certainly want to make changes. I mean, stock market is up over 20 percent the last year, so you may be heavier on stocks than you really want to be. In that case, ok, maybe you pare back just a little bit. But you don't want to quit cold turkey.

PHILLIPS: All right, so what are you personally paying attention to? Do you check on your -- your dollars every single day? I mean, be honest here. I mean, this is your business. What do you do the minute you wake up in the morning?

MCBRIDE: Well, I mean, I've raised some cash over the course in the past couple of months in expectation that we're going to get some volatility. So I'm looking forward to a buying opportunity. I think the volatility we saw yesterday is a really kind of a sneak peek of what we could see over the course of the next week and if that's the case, I expect to be a buyer.

PHILLIPS: Greg McBride of BankRate.com. We'll be talking more. Thanks Greg.

MCBRIDE: Thank you Kyra.

PHILLIPS: You bet.

Stories making news later today, next hour we're going to monitor GOP news conference focusing on the House Speaker's debt reduction plan.

Also around 11:00 a.m. Eastern Time, opening statements expected in the Warren Jeffs sex assault trials.

And the New Your City hotel maid who claims that she was sexually assaulted by former IMF chief, Dominique Strauss-Kahn, well, a news conference will be held on that at noon Eastern.

Ok, we're following lots of developments in the next hour of the CNN NEWSROOM. Let's go ahead and check in first with Alison Kosik.

ALISON KOSIK, CNN CORRESPONDENT: I'm Alison Kosik at the New York at the New York Stock Exchange, where we're seeing a nice change of pace for the labor market today. A new report shows unemployment claims dropped last week. I'm going to have details and the market reaction next hour.

ROB MARCIANO, AMS METEOROLOGIST: And I'm Rob Marciano on the CNN Severe Weather Center. We have a tropical storm, his name is Don. It hasn't done much for the past 12 hours. But now entering the warm waters of the Gulf of Mexico and headed towards Texas. Is it a good or bad thing? The forecast in the next hour.

VERJEE: Hi I'm Zain Verjee in London. Photo Shop is in the firing line here and I'll tell you how the actress Julia Roberts is caught up right in the middle of this -- Kyra.

PHILLIPS: Ok, thanks guys.

Also ahead, religion and winning the White House. How faith wins votes -- next.

(COMMERCIAL BREAK)

PHILLIPS: All right, today's "Big Play", something Angel fans haven't seen in nearly three decades. Last night in Cleveland, Ervin Santana did the first solo no-hitter for the halo in 27 years. A first ever at the (INAUDIBLE) Progressive Field and it's the third no, no so far this season.

Afterwards, Santana said he wanted to dedicate the performance in honor of his late cousin who died last month in his native Dominican Republic.

The University of North Carolina football team looking for a new head coach. That was Wednesday's surprise firing of Butch Davis that has everyone surprised. Now, in four seasons, Davis turned things around, but the NCAA has been investigating alleged academics misconducts on Tobacco Road. Davis says he's shocked. Tar heels faithful are, too. This happened just days before the team begins fall practice.

And the NFL, Merry-go-round now spins full circle with a labor deal. Lots of trades already, (INAUDIBLE) quarterback Donovan McNabb shipped in Washington Minnesota for draft picks while former Vikings QB Tavares Jackson goes to Seattle to replace Matt Hasselbeck who signed with Tennessee.

And one quick follow-up for you. It's rare, but obvious. And the umpire cops to it. He says he blew the call on Tuesday's late night Braves/Pirates game. Remember this. Tape doesn't lie especially in slow-mo.

So as the debt debacle edges ever closer to the cliff, it's inspiring some oddball moments, shall we say. CNN's Jeanne Moos reports on the debt limit follies. (BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT: A rap video, a cops and robbers movie, and Amy Winehouse? What do they have to do with the debt ceiling fiasco?

Remy Munasifi, a comedian from Virginia likes doing political videos.

REMY MUNASIFI, COMEDIAN: All this spending kind of fits in well with like a bad rap. I just happen to be a bad rapper.

MOOS: Speaking of bombs, was that really the A bomb dropped by House Speaker John Boehner as he tried to get his fellow Republicans to get in line?

LAURA INGRAHAM, RADIO TALK SHOW HOST: Is it true that you told some of the Republican members this morning that you need to get your A-word in line behind this debt ceiling bill?

REP. JOHN BOEHNER (R-OH), SPEAKER OF THE HOUSE: I sure did. Listen, this is time to do what is doable.

MOOS: The "Washington Post" reported that the House majority whip played a movie clip to motivate Republicans to pull together, the clip featured Ben Affleck as a bank robber planning revenge in "The Town".

BEN AFFLECK, ACTOR: I need your help. I can't tell you what it is. You can never ask me about it later and we're going to hurt some people.

UNIDENTIFIED MALE: Which car are we going to take?

MOOS: But Democrats turned the car against the Republicans.

SEN. CHUCK SCHUMER (D), NEW YORK: They chose to inspire their house freshmen, one of the crooks gives a pep talk to the other right before they both put on hockey masks, bludgeoned two men with sticks, and shoot a man in the leg. Ladies and gentlemen, this is your House Republican majority.

MOOS: Asked about Republicans playing his clip, Ben Affleck said, "I don't know if this is a compliment or the ultimate repudiation. But if they're going to be watching movie, I think "The Company Men" is more appropriate. A film about corporate layoffs.

AFFLECK: You're firing me?

MOOS: Now here's a head scratcher. What possible connection could there be between a debt and the death of singer Amy Winehouse?

Republican congressman Billy Long from Missouri tweeted "No one could reach Amy Winehouse before it was too late. Can anyone reach Washington before it's too late? Both addicted, same fate?" Long later apologized saying he meant no disrespect to Winehouse with his analogy about Congress's addiction to spending. If this keeps up, we'll have to raise the limit on debt-related doozies.

Jeanne Moos, CNN, New York.

(END VIDEOTAPE)