Return to Transcripts main page

CNN Newsroom

Debt Deal in the Making; Iran Court to Rule in the American Hikers' Case

Aired July 31, 2011 - 16:00   ET

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

FREDRICKA WHITFIELD, CNN ANCHOR: Hello, everyone. Thanks for joining us here in the NEWSROOM.

No deal to raise the debt ceiling yet. But it appears Congress is a lot closer. Earlier this afternoon the Senate blocked a move to vote on a plan put forth by majority leader Harry Reid. Now parts of that plan might be included in a new deal that's being hashed out by negotiators from both parties. Sources tell us this one would increase the debt limit through the end of next year, beyond the election, with cuts and spending caps also on the table, House Speaker John Boehner wants all House members to weigh in. So he plans to hold a conference call with many of them sometime today.

So we've got up to the minute coverage of what's happening in Washington. CNN's Kate Bolduan is on Capitol Hill. Dan Lothian is at the White House. First to you, Kate, Senate leaders in both parties keep saying that they are, "very close to a deal." What more do we know?

KATE BOLDUAN, CNN CONGRESSIONAL CORRESPONDENT: Well, we don't have specifics of a final deal quite yet because as far as we know, the final deal has not yet been struck. But we are getting - some details are emerging of the tentative framework of really where the conversation is focusing at this point. And noteworthy is the - is the change in tone and the change of mood up here from yesterday.

Many people - many senators that we're talking to now saying that they're very close to a deal, getting very close to a deal, even if they're saying they're not there yet. Just listen here to Senate majority leader Harry Reid speaking on the floor this morning.

(BEGIN VIDEO CLIP)

SEN. HARRY REID, SENATE MAJORITY LEADER: After speaking to Republican leader Mitch McConnell this morning we are cautiously optimistic. There are a number of issues yet to be resolved, and we must understand them. There's no agreement that has been made. But we're optimistic that one can be reached, but we're not there yet. Optimism in days passed has been really stomped on at various times. These major issues still to be resolved and these ongoing discussions are something we have to be resolved in the next few hours if they're going to be resolved.

(END VIDEO CLIP) BOLDUAN: Now some of the elements of this tentative framework that we're learning a little bit more about, of course, are not finalized, is that there's a goal of savings in somewhere in the area of $3 trillion. That according to the top Republican in the Senate, Mitch McConnell, speaking on "State of the Union" this morning. And also that would come with a debt ceiling increase of $2.4 trillion. That would satisfy one of the demands of Democrats, which is getting us through the year 2012.

But this also sets up a special committee. This is an important part. A special committee that would be charged with making recommendations of some much deeper spending cuts, somewhere in the area of almost $2 trillion that they would recommend to Congress and Congress would have to vote on. But if they were for some reason deadlocked or didn't accomplish this, then there would be kind of a trigger that would be put in place that could cause for automatic reductions and spending that people, of course, want to avoid. So that's kind of some of the interesting elements of what we're learning right now. Fredricka.

WHITFIELD: All right. And Kate, whose fingerprints are actually on this plan that has been worked out or this framework, so to speak? Is it the White House? The gang of six? Is it, you know, the speaker of the House? Senate leaders? Who?

BOLDUAN: Well, what we're hearing is that - that pretty much everyone that you mentioned is involved. We know that the top Democrat in the Senate, Harry Reid, he's very much involved. The top Republican in the Senate, Mitch McConnell, he's become a very key in these negotiations as well as you have to have involvement in the House and we know that Speaker Boehner is very much involved and leaders over there as well.

Again, the White House is back in these negotiations even though during the week that we didn't hear much about their involvement at all. They are definitely involved in these talks at this point that we're hearing and so it seems that all the parties that need to be there seem to be talking, sitting at the table or at least picking up the phone and talking to each other at this point, Fredricka.

WHITFIELD: All right. Thanks so much, Kate Bolduan on Capitol Hill.

Let's find out how involve the White House is at this juncture. Let's check in with White House correspondent Dan Lothian. So what is happening from your vantage point?

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: Well, first of all, I should point out that unlike Democrats and Republicans up on the hill, the White House is being cautiously optimistic about there being a deal, how close they might be to a deal. Top aides and other sources pointing out that there's still a lot to be worked out. And at this point there is no deal. But one Democrat with an understanding of the talks pointing out that things are in a much better place than they were 24 hours ago.

As Kate pointed out, one of the people who has been working behind the scenes now for quite some time, Vice President Biden, is also involved in the discussions today. In fact, one source pointing out to me that the vice president is deep in negotiations, not only internally here at the White House but also with lawmakers up on Capitol Hill. But even if a deal is reached tonight, some of the president's top advisers including David Plouffe said that the damage may have already been done. Take a listen.

(BEGIN VIDEO CLIP)

DAVID PLOUFFE, WHITE HOUSE SENIOR ADVISER: When you flashed the stock market decline this week, it's clear that it's hurting consumer confidence, business confidence. We have to remove this specter. The debt ceiling has been raised dozens of times over the last couple decades. It has to be raised again. And again, let's remember what we're talking about here.

(END VIDEO CLIP)

LOTHIAN: So that is the reason that it's so vital all sides agree to reach a deal within the next few hours in order to avoid the - prevent the U.S. from going into default. The big question is, can all of this be done by the critical August 2nd deadline? And what the White House has been clear to point out in the past, the president would be willing to support any kind of short-term deal for, you know, one or two days if they need to cross the T's and dot the I's of a potential agreement. The president would be willing to embrace something like that. So that's what we'll be watching closely over the next few hours, Fredricka.

WHITFIELD: And so Dan, you know, you know, despite the fact that they had a vote, kind of procedural vote on that Senate majority leader Harry Reid's plan today, when Nancy Pelosi and Reid went to the White House last night, was that the beginning of working out this kind of framework?

LOTHIAN: Well, it's unclear whether that was actually the beginning of, you know, working on the particular framework. I mean what we do know is that they're looking at the last 24 hours as a period when significant progress was made. So whether it's direct talks that was taking place with Democrats and the president or with Republicans and the president, as Kate was pointing out the president has been more, I guess, actively involved at least from the outside. Us looking in he appears to be more actively involved over the last few days.

You might recall the president had initially been having discussions with the House directly with Speaker Boehner. Speaker Boehner pulling out of those talks. And really essentially the White House giving lawmakers a time or space to work this out. Up there, still giving advice, but letting them work it out. Now the president and the vice president actively involved in these discussions and, as I pointed out, we'll be watching to see if, in fact, the deal can be reached over the next few hours.

WHITFIELD: All right. Keep us posted. Thanks so much, Dan Lothian from the White House. Appreciate that. So the debt crisis loomed large today when Joint Chiefs Chairman Admiral Mike Mullen made an unannounced visit to Afghanistan. Troops asked him how a U.S. default would affect their paychecks.

(BEGIN VIDEO CLIP)

ADMIRAL MIKE MULLEN, JOINT CHIEFS CHAIRMAN: One of the concerns that - that young men and women expressed to me on this trip is here we are halfway around the world fighting our country's wars. And I've got to worry about a paycheck potentially on the 15th of August, which is what would be the first payday, if you will that, from my understanding, would be in jeopardy if, in fact, we default.

(END VIDEO CLIP)

WHITFIELD: The soldiers also pressed Mullen about the debt debate's impact on overall military operations.

And a lingering question, is Washington on the right path to avoid a downgrade of the U.S. credit rating? Earlier CNN's Gloria Borger talked with a top economist about that.

(BEGIN VIDEOTAPE)

GLORIA BORGER, CNN : do you think this is also enough to kind of avert a downgrade from our AAA status right now?

MARK ZANDI, CHIEF ECONOMIST, MOODY'S ANALYTICS: Well, yes, of course, I'm -- you know, I'm not in the rating agency. I can't speak for them. But listening to what they have to say, I think this would be sufficient, yes. You know, all the rating agencies have different opinions. Some may go down a different path. But I think broadly speaking, if it comes close to what they're talking about now, this is substantive and I think it should avoid a downgrade.

((END VIDEOTAPE)

WHITFIELD: The AAA rating means the U.S. is one of the world's safest investments. And that has helped the government borrow at extremely cheap rates to meet its financial obligations.

Well tonight at 9:00, CNN special report, just what will it take to find a solution to the debt crisis? Wolf Blitzer and Don Lemon break down the obstacles and the options. Don't miss "Get It Done - Countdown to Debt Crisis" tonight 9:00 Eastern right here on CNN.

In other news, renewed hope today that two American hikers held in an Iranian jail could soon be free. We've got news today that an Iranian court is expected to rule on the hikers' fate this week.

Susan Candiotti has been following this story from the beginning. She joins us now from New York to talk about this latest development. What can you share with us, Susan?

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT: Hi, Fred. Of course, the question is could the hikers be reaching the end of their drawn out saga in Tehran's notorious prison. After a supposed final court hearing today, without cameras, the hikers' lawyer says a verdict could come this week. Their previous hearing was in February. Now, two years to the day they were seized the hikers' lawyer tells CNN the timing may be right to free Shane Bauer and Josh Fattal. The holy month of Ramadan is beginning, and it's not unusual to release prisoners as a sign of goodwill. Their lawyer says even if found guilty, he hopes the men would be sentenced to time served. Tonight their families issued a statement asking supporters to pray for an end to their ordeal.

In their words, "We are pleased that today's hearing was the final session in the case and now hope for an outcome that will bring freedom for Shane and Josh" On Friday in New York, outside Iran's mission, their families and Sarah Shourd, Bauer's fiancee who was freed last year, staged a rally with supporters marking the hikers' two-year-long captivity.

Shourd says they were seized at gunpoint in 2009 while hiking near Iraq's border with Iran. They were charged with spying and illegally crossing the border. They deny it.

(BEGIN VIDEO CLIP)

SARAH SHOURD, FREED HIKER: I would ask the Iranian authorities to show Sane and Josh the same compassion that they showed me. They deserve it just as much as I do. And they really have been suffering so long. I would also - if I could speak to Shane and Josh, I would tell them that it's because of them that I'm standing here today.

(END VIDEO CLIP)

CANDIOTTI: Now, today's hearing lasted four hours. As we said, no cameras were allowed. But the men's lawyer says Bauer and Fattal looked well. Fred?

WHITFIELD: And so I wonder, you know, Iranians at one point said that they had compelling evidence that the hikers were spies. What has come of that evidence?

CANDIOTTI: You know, we don't know. And especially because there were no cameras allowed, we haven't seen it. We haven't heard what evidence the Iranians have said they had throughout this entire ordeal. And we may never know, perhaps. We'll have to wait to see what that verdict is.

WHITFIELD: All right. Susan Candiotti, thanks so much, from New York for that update. Appreciate that.

CANDIOTTI: All right. Hollywood star Matt Damon at a Save our Schools rally. Hear what he told teachers and what teachers have to say about President Obama's education plan.

Also ahead, bullying in the classroom. Kids hurting other kids. Comedian Margaret Cho speaks out.

(BEGIN VIDEO CLIP)

MARGARET CHO, COMEDIAN: This is such a terrible thing. And you want to reach out to kids to make sure that they don't harm themselves. Because, you know, I lived through that, and I know how much you feel like, you know, it's so hopeless.

(END VIDEO CLIP)

WHITFIELD: Using comedy to forget the pain. Face to face with Margaret Cho later in the "Newsroom."

(COMMERCIAL BREAK)

WHITFIELD: In the air north of Anchorage, Alaska, a fatal collision between two small planes. One of them crashed killing all four people onboard. The pilot of the other plane was able to land safely. He was not injured. Both aircraft are float planes which can take off and land on water.

Three trees were planted near Shanksville, Pennsylvania, yesterday to honor victims of the 9/11 attacks nearly 10 years ago. Flight 93 crashed into this field after passengers stopped hijackers from using the plane to attack Washington, D.C.. Families of those who died in the crash were on hand.

(BEGIN VIDEO CLIP)

KEN NACKE, BROTHER OF FLIGHT 93 VICTIM: My dad said that a living memorial in a tree is probably one of the best things that you could have.

(END VIDEO CLIP)

WHITFIELD: 40 trees will be planted in all. One for each passenger and crew member.

After Matt Damon rallied with thousands of teachers in Washington yesterday, the rally is billed as a save our schools demonstration to protest the use of standardized tests to judge a teacher's effectiveness. Damon, the son of a teacher, gave his support to the cause.

(BEGIN VIDEO CLIP)

MATT DAMON, ACTOR, EDUCATIONS ACTIVIST: We have an army of regular people standing right behind you. And our appreciation for what you do is so deeply felt. We love you. We thank you and we will always have your back.

(END VIDEO CLIP)

WHITFIELD: The protesting teachers say the current Obama race to the top education plan relies as much on constant testing as the no child left behind plan.

All right. Let's check with our Jacqui Jeras. Hot in Washington, D.C.. Hot just about everywhere still. It's a broken record. But it is getting a little cooler in some places, right? JACQUI JERAS, AMS METEOROLOGIST: Well, this weekend actually wasn't terrible for some of these places. However, yes. The heat is going to be building, unfortunately, the next couple of days. In fact, this latest wave of heat is going to be really extreme. And it's going to be hitting those places that have already hit it so hard.

We've got advisories up now across 19 states. This bright pink is where we have the excessive heat warnings. As we get through, say, Wednesday, that's when we think we're really going to start to peak out. It's already feeling like 106 in Kansas City, 101 in Memphis, 101 Atlanta, 106 in New Orleans. And we're going to see this staying kind of confined to the southern and central plain states again, at least where the worst of it is.

Now we continued that streak. It did make it up to 100 yesterday Dallas. And take a look at where these numbers are going to be going in the next couple of day. We're pushing the one-teen. So this is really extremely dangerous. Because that's not just the thermometer temperature that we're talking about. You've got to add on maybe five degrees on top of that. This is now going to be the second longest streak that we've seen of consecutive days of 100 degrees plus for Dallas. You've got to get up to 42 to break that record. Today we should make it to number 30 to secure that second place.

Take a look at that heat wave as I was talking about. This is an image we got from the weather service office in Dallas. And it shows you the forecast for this week. That red line is the record high. So you can see we're going to get very close to it by tomorrow. We're likely going to see that again on Wednesday. And close to it again on Friday. And Waco, Texas, same story for you folks here as well. So just unrelenting.

Now, the tropics, things are going to get a little interesting here in the next couple of days. We said bye-bye to Don yesterday, remember? Today we're probably going to say hello to Emily. We've been tracking this tropical wave for a couple of days now. The hurricane center has put 100 percent probability that it's going to become our next tropical storm. So the hurricane hunters are flying into this thing as we speak. And we may start to see advisories issued as early as 5:00 Eastern time.

These are the computer model forecasts. And you see the consensus is getting a little bit tighter here. And we're going to have to watch Puerto Rico as well as parts of the Leeward Island for a potential hit, even, over the next couple of days. Still too early so see what we're going to have here for the United States. It's been kind of a busy start. You say, what? I thought it's been a slow start. Well, things don't normally start getting active until, say, mid-August. We're going to see a big difference here in tropical activity in the days and weeks ahead. That's the latest on the forecast.

Fredricka is back right after this break.

(COMMERCIAL BREAK)

WHITFIELD: All right. So every week we focus on ways to get a jump start in the work force. In today's "Reclaim your Career" we're talking about extra stress caused by poor communication. How do you maintain healthy communication when everyone else is dealing with deadline.

Valorie Burton has got some answers for us. She's the author of "Where Will You Go From Here," joining us now with tips on how to communicate better. And you say, you know, let's begin with just five very simple questions that you're going to ask yourself. Kind of troubleshooting even before something has actually happened.

VALORIE BURTON, AUTHOR "WHERE WILL YOU GO FROM HERE": The whole idea being that we can coach ourselves. As a coach, my job is always asking people powerful questions. So if you ask the right questions you get the right answers. And a lot of times people - when they're busy, when they're swamped, they don't communicate. And you end up having misunderstandings.

WHITFIELD: That's true.

BURTON: You know, people get into really frustrating situations.

WHITFIELD: Assumptions are made. You know, I thought you were going to do that. OK. So you say begin with as simple as last time I had to put out a fire or fix a mistake, what conversation could have prevented it from happening?

BURTON: Yes.

WHITFIELD: You're going to ask yourself that.

BURTON: You're looking back. You're learning the lesson. You're saying last time I had to put out this fire. Last time I was frustrated or had to double up on work because of a lack of communication. What conversation would have prevented that? And when you do that you have the opportunity to actually set up new rules. Perhaps it's something that you do all the time and you say, you know, we always need to have a quick meeting before this or I need to send a quick e-mail or make a phone call.

WHITFIELD: OK. And then you say, you know, if you don't communicate about the matter at hand, will the consequences matter a month from now?

BURTON: Yes.

WHITFIELD: What do you mean? So we were looking back for the lesson.

BURTON: But look ahead and say, is this really going to matter? Some people over communicate. You know, maybe you've had a boss like that. A lot of people have had bosses like that.

WHITFIELD: Don't talk too much.

BURTON: Yes, don't communicate too much. When you're swamped you don't have time to communicate about every single thing. So make sure you understand what the priorities are. Because if you don't people start to get confused. What's important? What isn't? You're communicating, coming over my desk about every single thing.

WHITFIELD: Or micromanaging.

BURTON: Micromanaging. If it's not going to matter a month from now, if there are no consequences a month from now it might be something you can kind of let go.

WHITFIELD: OK. And third, every time you communicate at work ask, "What's the outcome I'm looking for?"

BURTON: Yes. This is really pivotal. So when you have a conversation, before you go into that conversation, ask yourself what's the outcome I'm looking for? What's the bottom line? Because a lot of times we end up in conversations, we walk away more confused than when we got started. So what is it that you need to know? What's the piece of information that you need? Know the outcome. Because you begin with the end in mind and that works.

WHITFIELD: And am I avoiding the conversation or the person?

BURTON: Yes. So am I avoiding the conversation, or am I avoiding the person? If you've got people at work that are full of drama -

WHITFIELD: You're right. That can create big problems.

BURTON: Yes.

WHITFIELD: You're avoiding them or avoiding the conversation.

BURTON: You're avoiding them. So if you need information make sure that you focus on the content more than the emotion. I know the person might annoy you. But you need to have the conversation. So when you go into it don't allow them to draw you into their drama. You know, if they're having little slights don't worry about it. You know what the outcome is you want. So just get the information. Focus on the content. Don't get dragged into the emotion.

WHITFIELD: Stick to the point.

BURTON: That's right.

WHITFIELD: OK. And e-mail. Is it really the best way to communicate that message or would another mode of communication be more effective? So you're asking yourself that if something really went wrong, you know, you guys just didn't meet in the middle with the communication, and now you've got to reflect, I don't know, was the e-mail the best way in which to convey my message?

BURTON: Is e-mail is the best way? You know, we overuse e-mail sometimes. You can't communicate everything by e-mail. I've gotten e-mails before where I'm like what the heck did they mean by this, right?

WHITFIELD: Pick up the phone or walk over to me.

BURTON: Yes. E-mail doesn't convey tone. So you want to make sure is this worth a phone call? Do I need to walk over and actually have a meeting with the person? E-mail is not always the way to go. And if you send too many people start ignoring your e-mails anyway which is counterproductive to your ability to communicate.

WHITFIELD: So you can't overdo it. So communication is the key. You've got to have that harmony in the workplace. That means you've got to figure out a better way to get the message across.

BURTON: Yes. And stopping to reflect and ask yourself these questions can make you a whole lot more effective and it can save a lot of time in the end. It feels like it's taking more time, but in the end you save time.

WHITFIELD: All right. Excellent questions which to ask yourselves. A little troubleshooting there. All right. Valorie Burton, good to see you. Thanks so much.

BURTON: You too, Fred. Thanks.

WHITFIELD: So how would a U.S. default affect the world's markets? I'll talk to a Hong Kong based CNN business correspondent about that later on in the hour.

(COMMERCIAL BREAK)

WHITFIELD: Our top story, still no deal to raise the federal government's debt ceiling. But it appears Congress is a lot closer. Early this afternoon, the Senate blocked a move to vote on a plan put forth by majority leader Harry Reid. Parts of that plan, however, might be included in a new deal that is being hashed out by negotiators from both parties.

Sources tell us this one would increase the debt limit through the end of next year, beyond the election. Predictably, the TV talk shows were all about the debt talks in Washington this morning. Here are the highlights.

(BEGIN VIDEO CLIP)

SEN. MITCH MCCONNELL, MINORITY LEADER: At the end of the day we cannot allow our economy to lapse into this default. It will be devastating.

UNIDENTIFIED FEMALE: Can you announce this morning that a plan has been reached? That there's a deal?

UNIDENTIFIED MALE: Well, we're very close. I think we're very close to being in a position where hopefully I can recommend to my members they take a serious look at it and support it.

DAVID PLOUFFE, SENIOR WHITE HOUSE ADVISER: I think what's clear is that there's general agreement that we're going to have deficit reduction in two stages. The first is going to be something the parties largely agree on about a trillion dollars in deficit reduction. The second stage is going to be the trickier elements of entitlement reform and tax reform which this super committee is going to be charged with.

SEN. CHUCK SCHUMER (D), NEW YORK: I would think one of the hardest things for you to sell your members is is that if - if this committee cannot agree on cuts for these various programs, any program, then triggers -- this will set off trigger where there will be automatic cuts in these programs and also in defense spending.

The key with the trigger is one word. Equality. It should be equally tough on Democrats and Republicans. The tough part on the Democratic side, if we don't come to an agreement, there will be cuts in programs that we like, helping middle-class kids go to college, prescription drugs. On the Republican side, we believe that the triggers should have revenues potentially. So that they would have to do things they hate like close tax loopholes for oil companies and corporate jets.

REP. KEVIN MCCARTHY, (R) MAJORITY WHIP: Can Speaker Boehner pass this bill, whatever it ends up being, with more Democrats than Republicans and still retain his speakership?

Speaker Boehner has been the leader on this of changing Washington. First and foremost, now we're cutting, before we were spending. The president to me has been somewhat, look, you cannot be the leader of the free world and sit on the sidelines and tweet and think you're going to get the job done. We have been out front negotiating, talking, but we've laid out a clear set of principles that we're going to bring accountability back and we're going to change the way Washington works.

(END VIDEO CLIP)

WHITFIELD: So would a U.S. default have a ripple effect on world markets? We'll ask a Hong Kong-based CNN business correspondent after the break.

All right. In the pain of grief and how it forced comedian Margaret Cho out of childhood and on to the stage.

MARGARET CHO, COMEDIAN: So painful. And every time it happens to anyone, it's just so over whelming.

WHITFIELD: Margaret Cho tell us of the struggle when I sit down face to face.

(COMMERCIAL BREAK)

WHITFIELD: They are fired up about the debt ceiling debate. Ireporters are making their voices heard on the web. Here's some of their opinions.

(BEGIN VIDEO CLIP)

BRETT BAYNE, IREPORTER: This is your country's darkest hour. It's time to end tax breaks for millionaires and big oil companies. It's time to stop rushing to their defense and come to our rescue. It's time the super-wealthy were made part of our national debt reduction program. It's simple. The time for compromise was weeks ago. Do your jobs, Congress.

UNIDENTIFIED FEMALE: Let's get out of this mess that we're in regardless of who got us here and how it happened. We've never defaulted on a loan. Let's not start now. Let's not ship wreck this country.

VERNON HILL, IREPORTER: The problem is we have politicians who design plans and you have the other side who votes against the plan. It doesn't matter what is in the plan. Each politician wants to be able to say that their plan prevailed.

UNIDENTIFIED MALE: How can this happen? How can we elect, quote, career politicians, unquote, that have done nothing to prevent this situation? Why are they so stupid and refuse to realize that they cannot keep spending money.

UNIDENTIFIED MALE: I'm with the majority of Americans who are working hard to repay what we've borrowed. I'm not defaulting on the debts I've incurred. I'm not walking away from my obligations. We're using a strict budget to make sure our payments are met and that we'll be clear of debt very soon. I expect my government to do the same.

UNIDENTIFIED MALE: Raising the debt ceiling should be very simple. A one sentence statement that says it's now this amount rather than that amount. The way that we correct our deficit and our debt is through a balanced approach and most recognize this.

(END VIDEO CLIP)

WHITFIELD: A U.S. default could certainly hurt world markets. The U.S. dollar plays a critical role in global economies. So domestic instability would have a ripple effect abroad.

Joining me right now by phone to discuss the impact of the debt crisis on Asian markets which open in less than four hours from now, Pauline Chiou, she is the anchor of "CNN Live World Business Today." So Pauline first of all how do you expect the markets to react to this latest news of a possible deal?

PAULINE CHIOU, CNN ANCHOR: Well, Fredricka, I just looked at the futures here in Asia. And it looks like it's going to be a mixed bag. So it looks like there is some optimism. The Nikkei in Tokyo and Seoul, South Korea they open first along with Sydney, and we also watch Australia. They open at 8 p.m. Eastern Time.

Sydney is opening down at the open. Then the futures for the Hang Seng in Hong Kong, it looks like it is going down. The Seng high composite will open; it looks like at this point about a tenth of a percent up. So as of now, it looks like it's a little bit of a mixed bag. But this is far -- this is a far better picture than last week when all the major indices ended the week down by about 2 to 3 percent.

Fredricka, China and Japan are really watching this closely. That's because those two countries are the biggest foreign holders of U.S. debt. China holds $1.3 trillion of Treasury notes. Japan holds more than $90 billion. So, of course, they want to make sure that they get paid their principal and their interest payments when these bonds mature.

WHITFIELD: Is it also the case that maybe it would be too soon to know whether there would be an impact of a deal or no deal if it were today versus Wednesday morning Asian time after, you know, the U.S. either does or does not meet that Tuesday deadline?

CHIOU: Well, I think the sooner, the better. Because if you've been watching the markets over the past couple of weeks, there's definitely a lot of caution, some jitters, and investors are taking money off the table. And they're just waiting to see what will happen. So I think the sooner, the better.

I was talking with a strategist last week who said that obviously everyone's watching this August 2nd deadline. But the bigger question is whether or not the U.S. will keep their AAA rating. And he said that that's something that the markets here in Asia haven't really thought through yet. Because we always thought that the U.S. is the gold standard. Their credit rating, the AAA, is the highest level that you could possibly achieve.

And so the markets here haven't quite thought through that out. I think that's the bigger question. Not so much whether or not an agreement will be hammered out. I think most people agree that something will be hammered out whether it's Tuesday or Wednesday or Thursday. But the bigger question is whether or not the U.S. will keep that AAA rating. Because if it loses that, that has a ripple effect. A lot of lenders hold collateral that are tied to that AAA rating.

WHITFIELD: Pauline Chiou thanks so much, of world business today. Appreciate that.

Tonight at 9:00, the CNN special report, just what will it take to find a solution to this debt crisis? Wolf Blitzer and Don Lemon break down the obstacles and options. Don't miss "Get it Done: Countdown to debt crisis" tonight, 9:00 Eastern right here on CNN.

Living in a tent to protest the high cost of keeping a roof over your head. I'll show you a growing social movement after this.

(COMMERCIAL BREAK)

WHITFIELD: Some headlines from overseas. Two passenger trains collided head on today in India's West Bengal Province. At least one person was killed. India's railway system has a very bad safety record. Just three weeks ago another train wreck killed more than 60 people.

And there are reports of new ethnic violence in China in the northwestern city of Kashi. The Chinese state news agency reports that an explosion killed three people, knifing killed seven more, and police apparently shot and killed four more people. There are long running ethnic tensions in the region between the weaker Muslims and Han Chinese.

President Barack Obama is calling the situation in Syria, quote, horrifying. Government tanks stormed the city of Hama today. Syrian dissidents say at least 50 people were killed in Hama and at least 21 other people were killed in other parts of the country.

Some Israelis are protesting the high cost of keeping a roof over their heads. Demonstrators are camping out in tent cities right in the middle of major cities. As CNN's Kevin Flower reports, the government has taken notice.

(BEGIN VIDEO CLIP)

KEVIN FLOWER, CNN CORRESPONDENT (voice over): It looks like your standard campground. Rows of pitched tents providing shelter for those looking to escape the blistering sun. While others beat the heat with picnics of ice cream and beer. But this is not a summer vacation, and the campground here is not in a park, but smack in the middle of one of Tel-Aviv's most exclusive neighborhoods.

PHILIP ZUNDELOVITCH, TENT CITY PROTESTER: The first few people that decided to come here are simply people who their rent contract was expiring and they couldn't afford the raise their landlords wanted. They decided they're going to come here and they're going to live in tents.

FLOWER: That was two weeks ago. In the days that followed, hundreds of more tents with thousands of protesters started appearing not only in Tel-Aviv, but in other major Israeli cities as well. At issue? Not only anger over escalating real estate costs because of a housing shortage, but a broader middle class outcry about increasing prices on everything from education to health care to cottage cheese. Billed by some as Israel's version of Tahrir Square, the rapid rise of the social networking inspired tent city movement and prompted a fierce debate in Israel about what sort of country it wants to be.

MAIR SABAN, FORMER ISRAELI CABINET MINISTER: It's at least a struggle on the welfare state. Whether we shall improve it and whether we shall revive the positive aspect that we're in the welfare state of Israel some decades ago or we should go the direction of the United States.

FLOWER: This week, the government of Prime Minister Benjamin Netanyahu took notice and announced a series of measures aimed at increasing the amount of affordable housing on the market. But government pledges notwithstanding, the number of tents has increased, and protesters say they're on the verge of forcing major change. Even if they are not sure what change they want.

OR TEPPLER, TENT CITY PROTESTER: We don't really know. You know, it's like a new country, this place. And we're two weeks old. And we came here with an idea and the idea is becoming a nation. I think we're discovering slowly, like, what this is about. We're not sure yet.

FLOWER: Organizers say they will keep to their tents until they are satisfied the government response is serious, and the police as of yet have not moved to shut down the tent cities. So in the meantime, protesters will wile (ph) away their time in their urban camping expedition.

Kevin Flower, CNN, Jerusalem.

(END VIDEO CLIP)

WHITFIELD: Back in this country, an incredible football deal. Mega bucks for Peyton Manning. The NFL quarterback gets a huge pay raise.

(COMMERCIAL BREAK)

WHITFIELD: Violence targeting gays, teens committing suicide. Two very harsh topics in the news. These same issues shaped the young life of Margaret Cho. In my exclusive face to face interview Cho tells about one incident that changed her life.

UNIDENTIFIED MALE: I can't have this conversation. Not right now.

WHITFIELD: Drop dead diva, you play Terry, the very loyal assistant to an attorney who's in her second life.

CHO: Mm-hmm.

WHITFIELD: Is this a lot of fun?

CHO: It's fun. It's a beautiful show. It's really -- it's really magical and it's really all about romance. And it's about this woman falling in love and kind of really falling in love with herself. And so my story kind of is helping her along. You know, I help Jane, who is played by Brooke Elliott, and I help her life along in her cases as a lawyer, in her romantic life. So it's -- it's a great ensemble. We have a wonderful time together. It's a beautiful show.

WHITFIELD: You talk about really enjoying your life and this character, knowing who she is and loving herself. And it's interesting because just a moment ago you were talking about growing up, you know, with a lot of violence, you know, targeted toward homophobia. You experienced that along the way.

CHO: I experienced it. I remember being really shy as a teenager. I had an English teacher who was a gay man. And he really believed in me. And he wanted to draw the writer in me out. So he would pass this notebook to me and we would, like, write in it. And then he would give it back. We'd pass it back and forth and he would write in the margins in red marker, never stop writing. It was this really a beautiful thing. It helped me so much.

One day he didn't come to school. And I was going to the rest of my classes. I was so confused that he wasn't there. I went to a class and there were these boys in class. They were laughing. Then I kind of got close to them and they were laughing and they were laughing and they were saying that [bleep] got murdered. My teacher had been murdered. And I was so -- it was so unbelievably heartbroken. Like, I've never felt that kind of pain. It was so horrible. I ended up dropping out of school that day. Because I just didn't want to return, you know. It was just too painful for me. It was too painful -- I think at that point that's when I left childhood, actually.

That's probably why I began doing stand-up so early. Because I just didn't want to be a kid anymore. I wanted to accelerate my adulthood. And so I felt like if I became an adult, I wouldn't be so heartbroken and missing him and so sad about it. So that was a major -- a major wound. And I think, you know when you've been touched by homophobic violence like that, you really -- it's so painful and so -- every time it happens to anyone, it's just so overwhelming.

WHITFIELD: So at that juncture in your life, were you open about your sexual orientation?

CHO: I think I didn't really know. I think I definitely knew that there was something about me that was different. But it wasn't as apparent, you know. It hadn't fully formed yet.

WHITFIELD: And at what point in your life did you feel it was time to be open about it, let people know, let your family know, also feel comfortable with incorporating it in your comedy and in your life and advocacy.

CHO: Probably not that much longer than that. I think it was probably maybe 17 or 18. It wasn't too much longer after that where I felt I understood what I -- what I was about or who I was. Certainly growing up in San Francisco, around a lot of aids advocacy. This was happening in the '80s. A lot of stuff, like, that was created around Aids. Aids were such a terrible time for our community. But what it did do was really reinforce our political strength. So I felt a lot of acceptance in that -- in that role of working as an Aids activist. A lot of comfort within myself and, you know, that helped me tremendously.

WHITFIELD: Were you also bullied as a child?

CHO: Yes. I think because I was queer, because there was something about me that was so -- and also kind of indefinable, too. Because it wasn't just sort of -- like kind of explained away in a very sort of black and white way. My sexuality had so many different components to it. It was really strange for people to get. So I think, yes, I was definitely bullied a lot.

That's why I was so concerned about these gay teen suicides that had been happening because of bullying. This is such a terrible thing. You want to reach out to kids to make sure that they don't harm themselves. I lived through that. I know how much you feel like, you know, it's so hopeless.

WHITFIELD: So you were able to combat all these outward forces as a child by making a decision about comedy and really kind of creating and crafting your life at a very early age.

CHO: Well, I think it was a kind of escape, too. Like, I was going into comedy to escape my surroundings and escape, you know, bullying and escape this, like, you know, very oppressive environment that I was in in school. So it was the need to get away that sort of drove me into comedy. Fortunately, I had a place to go.

Like, comedy was my place to go. And I had great people who were very supportive. Bob Hope was very supportive. Roseanne Barr was very supportive. Jerry Seinfeld was amazingly supportive. These people really helped me. That's why I take a lot of time and I help younger comics out, like, to me, like, if I see incredible potential in people, then I want to, like, draw it out and, like, make sure that it happens, you know, like try to figure out what they need. That's the way that I can try to give back a little.

WHITFIELD: So what is your message to young people who, perhaps, don't have that funny bone, maybe they're not into comedy, but they are struggling with who they are and they're struggling with who everybody else wants them to be. Or how everyone wants to see them and how and what's the message you send to a young person who maybe doesn't have comedy as that backbone, but, you know, they I guess need some encouragement in some way?

CHO: Well, there is something that they -- they have in them that they can develop and they can go into. Whatever gives you joy, you should follow. You should try to find that. But I think they need to be told they're just worthwhile and that they're worthy and they're loved and that life is really hard sometimes, and everything -- you kind of figure it all out later. So just give everything time.

WHITFIELD: All right. You just heard Margaret Cho face to face about why she put adulthood on her fast track. Next hour, Cho talks about her very open marriage.

CHO: In my world, you know, everything is gay. Everything is queer. And so to move outside of that is always a sort of a strange experience.

WHITFIELD: Margaret Cho, very open, very blunt, face to face next hour here in the CNN NEWSROOM.

(COMMERCIAL BREAK)