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The Social Cost Of Gambling; Colorado Fires; Florida Versus Feds Over Voter Purge; American Families Getting Poorer; Reward Rises In Auburn Killings; Hosni Mubarak's Health; Anti-Putin Protests In Moscow; Stranded Couple Survives Wilderness; Children Suffering Some of Worst Blows in Fight for Syrian Control; Group of Nuns Take on the Vatican; "Supernanny" Gives Parenting Advice; WHO Group Says Diesel Fumes May Cause Cancer; Detroit on Brink of Bankruptcy

Aired June 12, 2012 - 13:00   ET

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

POPPY HARLOW, CNN CORRESPONDENT: -- that risk. But also, billions in potential tax revenue. It hasn't saved Detroit.

UNIDENTIFIED MALE: No.

HARLOW: It's not going to save cities.

UNIDENTIFIED MALE: I don't see why anybody would argue it's going to save anything. It's going to be a stimulant to a city that's having its own challenges, but I think you'd be overreaching -- anyone would be overreaching terribly to say this is going to be a panacea for something.

HARLOW: Poppy Harlow, CNN, Las Vegas.

KATE BOLDUAN, CNN ANCHOR: I'm Kate Bolduan in for Suzanne Malveaux. It is the top of the hour, so let's get right to it. The fast moving wildfire raging through northern Colorado has now scorched more than 43,000 acres. That's bigger than the nearby city of Fort Collins. One person has been killed. Officials say things are looking better than they thought, though. But at this point, the fire has not been contained.

And Florida and the federal government are suing each other over an effort to purge the state's voting rolls of ineligible voters. The Justice Department says purge violates federal voting rights laws. Now, Governor Rick Scott says Florida is suing the government. He says the state needs access to a database that will help identify people who should be removed from the voting rules.

(BEGIN VIDEO CLIP)

GOV. RICK SCOTT (R), FLORIDA: The homeland security has been stone walling to give us a database we're entitled to. We've been asking for months. It will give us -- make sure we do it the right way. And so, we were put in a position where we had no choice but to sue homeland security to get that database to make sure that your right as a citizen is not diluted by somebody that's a non-U.S. Citizen illegally voting in our state.

(END VIDEO CLIP)

BOLDUAN: As you hear right there, governor Scott says this is all about making sure noncitizens don't get to vote. Critics, though, say the effort unfairly targets minorities.

And if you're -- are you feeling poorer these days? Well, if you are, you are not alone. That's because the typical American family lost 40 percent of its wealth in three years. Yes, 40 percent gone. That amounts to 18 years of family savings and investment. Alison Kosik is joining me again from New York. Not good news. This is a pretty stunning number. What's being pegged as the main culprit of all this, I guess?

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: You know what the biggest reason is, Kate? Your home. Home values just tumbled, and your home's considered your biggest asset. Also, there's massive layoffs that happened throughout the past several years. They took away income. And then, of course, you pile on all those unrealized capital gains, declining value of mutual funds, retirement accounts. That all fell more than 10 percent in those three years. And that's, of course, was all the result of the recession.

And you know what? This happened to everybody, whether they were young, old, educated, not educated, and in all parts of the country. But it is getting a little better. America's net worth has recovered a bit since 2010. People are able to find some work again. Housing prices -- housing values are coming back. But still, any way you cut it, a typical American family, Kate, is poorer today than before the recession -- Kate.

BOLDUAN: I'm sure that's not a surprise to many American families to hear that. But when you're talking about -- we're talking at worth, wealth here, what about how much families are making, about income?

KOSIK: Exactly. And you saw that fall as well. The fed said the decline was the biggest among highly educated families who live in the south and the west regions of the country. And guess what? High unemployment, that was the biggest factor. Of course, there's no job, there's no income. And then you saw those jobless rates rise because you see the jobless rate was at five percent at the end of 2007, and then spiked to 9.4 percent at the end of 2010.

Of course, today, it's sitting at 8.2 percent. The fed also said that incomes fell for families who run farms, small businesses, or who are self-employed. Of course, all of this is another result of the economic downturn. And Kate, you know, it's going to take years for families to recover from the recession. But you know, others may never get that net worth -- that net worth back -- Kate.

BOLDUAN: Alison Kosik at the New York stock exchange. Thanks so much, Alison.

KOSIK: Sure. BOLDUAN: Authorities in Alabama say the reward for information leading to a triple murder suspect is up to $30,000. The manhunt continues after police surrounded and searched a house for more than six hours. They're looking for 22-year-old Esmonte Leonard, accused of killing three people at an off-campus party near Auburn University. The dead include two former Auburn football players. Police say they're determined to get their suspect.

(BEGIN VIDEO CLIP)

THOMAS DAWSON, CHIEF, AUBURN POLICE: If he's watching. I want him to realize this. Doesn't matter where he's at. We have the FBI on this case, the U.S. Marshals. We will find him. We will bring him back to Auburn, Alabama. He will be incarcerated some point at taken to jail.

(END VIDEO CLIP)

BOLDUAN: Our David Mattingly has been following developments for us. Pretty amazing. They were at the house. Did they come up empty handed? What happened?

DAVID MATTINGLY, CNN NATIONAL CORRESPONDENT: They did come up empty handed. They feel like it's possible they just missed him. But the authorities in Alabama right now were spending a lot of time defending their actions yesterday ,because of the tremendous amount of manpower and the tremendous amount of time they spent at this house. Today, they were saying that they got three credible calls directing them to that house. Two of them, in particular, one was from a man who says he dropped the suspect off at that house. Another came from a woman who owns the house saying she came home and saw him on her couch.

So, they acted on those two calls. Got there, they say, within 15 or 20 minutes of the call, but he wasn't there. But they didn't know that when they went in. They say they went in, they did everything by the book. Very slowly to make sure nobody got hurt. And that's why they were there so long. They thought they heard someone coughing, moving around in the attic. So, they lobbed some tear gas in there. And now today, they say they have a situation of cleanup to do at the house, they still have officers there, but he was not at that house.

BOLDUAN: So, they still don't have the man they're looking for. But when you think about just this whole case, it is absolutely a parent's nightmare. You send your kid off to college. You do not expect them to end up dead after an off-campus party. I mean, walk us through what kind of unfolded at this party. And I guess, I don't know, does the suspect have a connection to the actual university?

MATTINGLY: No. What we're looking at here was an unofficial off-campus apartment complex. It was a very casual pool party going on at the time. And then, there were two men there who said they were approached by a couple other men who confronted them, started arguing with them about a woman. From that, the argument turned into a fistfight. From there, shots were fired and that's when people got killed. Among the three that were dead were two former Auburn football players. They weren't a part of this at all. They were just victims of what police chief there describes as a brutal shooting. And there was one other Auburn player there among the wounded. He was treated and released and there is still one person who was wounded there, shot in the head who is in the hospital right now. The family doesn't want any information released about his condition.

BOLDUAN: So, you said you were following these press conferences by the authorities. What are their next steps? Are they waiting for more leads? Obviously, they're not tipping their hand probably, but --

MATTINGLY: They say they're still going forward just as they always were, but as far as their actions last night, they're defending themselves saying, we did everything right. We were acting on information that we had. We acted the way we should have, thinking there was a man who was accused of a triple homicide hiding in that house. And they said if it happened again tomorrow, they'd do the same thing again. But right now, they're having to do a lot of explaining about why they didn't get the guy.

BOLDUAN: And all the while, three people dead, two of them -- you know, I think we're showing some pictures behind us of some of the victims. Three people dead, three others wounded and still, they do not have their man yet.

MATTINGLY: Right.

BOLDUAN: David Mattingly, keep following it. We want to know how this ends up.

MATTINGLY: Thanks.

BOLDUAN: Thanks, David.

Here's what we're working on for this hour.

(voice-over): Trapped for nine days. After a devastating blizzard, this couple survived by soaking up heat from natural hot springs.

Plus, a high stakes game of chicken, and a major U.S. City is caught in the middle. Why a lawsuit has Detroit on the brink of bankruptcy.

And the search for black holes. NASA wants to shed some light on the darkest and most mysterious parts of the universe.

(COMMERCIAL BREAK)

BOLDUAN: We have some new details now about Hosni Mubarak's health. A government spokesman says the former Egyptian president is clinging to life and slipping in and out of consciousness. The 84-year-old is in -- is in a prison hospital. He's serving a life sentence for his role in the killing of pro democracy demonstrators last year. The spokesman says Mubarak's two sons are beside him and his wife visited him today.

And thousands of people are protesting in the streets of Moscow. They want to get rid of Russian president Vladimir Putin, but Putin is putting his tough guy image to work it appears. He's cracking down on the crowds and the protest leaders. Our Phil Black checks in with the crowds.

(BEGIN VIDEOTAPE)

PHIL BLACK, CNN CORRESPONDENT (voice-over): A big crowd. It has been a long, slow shuffle along the narrow Moscow road known as the boulevard ring. This is the latest protest against Vladimir Putin and his continued leadership of Russia to become regular events here in Moscow over the last six months. And again, 10s of thousands of people have taken to the streets to show how unhappy they are with the state of democracy in this country.

But this one's taking place in a slightly different context. It is the first since Vladimir Putin's inauguration as president and it is the first since he recently signed into law new rules which strictly control the behavior of large demonstrations like this and punish violations with very big fines. Those new laws are being interpreted by human rights activists and leaders of this opposition movement as an attempt to stifle this opposition's movement from growing any larger.

And again, only yesterday Russian police raided the homes of the most prominent members of the movement. They say they're investigating the violence which took place at the last big rally back in May, but, again, it is being interpreted as an attempt to intimidate and persuade people it's not a good idea to join these marches.

(on camera): That last rally back in may on the eve of Putin's inauguration was violent. It was when a huge crowd like this came up against several strong lines of police in full riot gear. The result was clashes, hundreds of arrests and dozens of injuries. Today, we have seen a lot of police, though not many in full riot gear, and behavior of the crowd has been absolutely peaceful. Phil black, CNN, Moscow.

(END VIDEOTAPE)

BOLDUAN: So, imagine surviving a snowstorm in the New Zealand mountains by soaking up heat from natural hot springs and sleeping in hammock tents. Does not sound like vacation for many. For nine days that's what Alec Brown and Erica Klintworth of Wisconsin did. I think you're seeing some pictures of them there. They're studying in New Zealand and decided to take a camping trip in the mountains, but then a nasty storm hit. They toughed it out in the rain and snow rationing trail mix and lying in the warm water from the natural hot springs which is likely what saved their lives.

(BEGIN VIDEOTAPE) ERICA KLINTWORTH: It is pretty much the river ran through. There is an island in the middle, and the main river ran through one side. And then, the other side was kind of more of a floodplain, and that's where the hot water came out of. And so, we had to just had to kind of dig away some of the rocks and make ourselves a pool. And it was really nice and hot. Nice, clean water. Just a great place to be stranded in a blizzard.

UNIDENTIFIED MALE: And how long were you spending in that hot water each day?

KLINTWORTH: Pretty much as soon as we got up, maybe around like 9:00 or 10:00 we got in and got out. Some days it was around 5:00 or 6:00 when it started to get dark. Other days, it was until maybe 9:00 or 10:00.

(END VIDEOTAPE)

BOLDUAN: They were able to make it out on their own but not before a search and rescue was under way to find them. Here's New Zealand reporter Jessica Row.

(BEGIN VIDEOTAPE)

JESSICA ROWE, NEW ZEALAND (voice-over): The rescue helicopter hones in on the spot where Wisconsin couple Alec Brown and Erica Klintworth toughed out last week's big snowstorm by lying in natural hot pools. But they reject criticism they were unprepared.

(BEGIN VIDEO CLIP)

KLINTWORTH: We were wearing hoodies and, like, just not the type of thing that you want to be wearing and have when you're stuck in a mountain storm. But I think when it came down to it, we were a lot more prepared than everybody thought.

(END VIDEO CLIP)

ROWE: They were hiking the Ojahake River when the bad weather came in, the snow came down thick and fast, and temperatures dropped as low as minus eight degrees. Unable to cross the swollen river, the couple was stranded. They hunkered down, keeping warm by sleeping in a hammock tent like this. And spending hour after hour in the natural hot springs.

KLINTWORTH: Clearly we were pretty comfortable where we were and survived it, no problem. We had all the right gear to get through it and have clean, fresh water and stay warm and dry.

ROWE: It was not until yesterday that river levels dropped low enough for them to safely cross and walk out of the brush by themselves. West coast search and rescue coordinator sergeant Sean Judd says it could have been avoided if they had been properly prepared for the forecast and (INAUDIBLE)

SEAN JUDD, WEST COAST SEARCH AND RESCUE COORDINATOR: It's frustrating. It's a lot of work gone into this operation. You know, taxpayer dollars, the use of the helicopter and obviously the search and rescue volunteers we used. A lot of the time has been used up by the weekend and perhaps needlessly.

KLINTOWRTH: The couple spent last night at a Graymouth (ph) backpackers, and are expected back in Christchurch this evening.

Jessica Rowe, 3 News.

(END VIDEOTAPE)

BOLDUAN: A dingo took the baby. Thirty-two years after an Australian mother's frantic cries about a wild dog grabbing her child, the cause of death is now official.

(COMMERCIAL BREAK)

BOLDUAN: Disturbing new accounts coming from Syria today. Children are being tortured, beaten, and used as human shields. That's according to a new report from the United Nations. The report says children whose parents are suspected dissidents are being whipped with electric cables, scarred by cigarettes, even in one case, subjected to electric shock to the genitals.

The report comes as clashes move to the capital city of Damascus. Our Ivan Watson reports.

(BEGIN VIDEOTAPE)

IVAN WATSON, CNN INTERNATIONAL CORRESPONDENT (voice- over): This is a Syrian rebel ambush. A roadside bomb hitting a convoy of buses carrying Syrian troops. The rebel's camera captures soldiers running for cover in the suburb of Duma few miles from Damascus.

The sound of fierce fighting echoing across Damascus at night has shattered the security bubble in the capital. Syria experts say the battle for Syria's two largest cities has begun.

PETER HARLING, INTERNATIONAL CRISIS GROUP: We've seen events pick up on the ground with more and more clashes occurring in area of the country which the regime claims to control. And in particular the larger city, Aleppo, the country's economic capital, if you will, and the administrative capital, Damascus. In both places, we've seen not just more armed clashes than ever in the past, but also a revival of the protest movement in its peaceful dimension.

WATSON: A secretly filmed activist video shows the historic Hamadea Bazaar in the heart of Damascus shuttered. A strike staged by shopkeepers two weeks ago in protest against a massacre of civilians in the village of Hula, allegedly by pro-government militia.

HARLING: This is really a very strong signal suggesting that the historical alliance between the regime and the business establishment of the capital is at least partially broken. WATSON: The strike spread to neighborhoods in Aleppo, prompting government troops to lash out and force merchants to reopen their shops.

HARLING: What we see is a regime whose narrative boiled down to us or chaos. But increasingly what we see is them and chaos. The regime has been incapable of imposing law and order.

WATSON: More than a year of violence compounded by economic sanctions is taking its toll on ordinary Syrians. Prices of basic commodities and fuel have skyrocketed. Activist journalists sent us this video of a woman, complaining that she can only afford to feed her children rotting onions and stale bread warmed over a wood fire because she can't afford to buy cooking fuel.

The Syrian regime is still far from defeated. It still has fervent supporters and vastly better weapons than the rebels. But with its soldiers now using the main sports stadium in Damascus as a staging ground, the image of a government in control has started to crack.

Ivan Watson, CNN, Istanbul.

(END VIDEOTAPE)

BOLDUAN: They were scolded by the Catholic Church. Now some American nuns are taking their case all the way to the Vatican.

And don't forget, you can watch CNN live on your computer while you are at work. Don't feel bad about it. It's important to watch. Head to CNN.com/tv.

(COMMERCIAL BREAK)

BOLDUAN: A Texas father beat a man to death. He allegedly caught the man molesting his 4-year-old daughter inside of his home. And locals in the small town of Shiner are voicing their support for the father.

(BEGIN VIDEO CLIP)

SHERIFF MICAH HARMON, LAVACA COUNTY, TEXAS: Her, trying to get her away from him that he struck the individual in the head several times.

UNIDENTIFIED FEMALE: I don't think he should be arrested for it. I don't think any charges should be filed.

UNIDENTIFIED FEMALE: If somebody abused my grandchild, like he did, I think he'd deserve everything he got.

UNIDENTIFIED MALE: Especially 4 years old. That's terrible.

UNIDENTIFIED FEMALE: Yes.

(END VIDEO CLIP)

BOLDUAN: The sheriff says a grand jury will decide if the father will be charged in the case. We are told the little girl suffered quote/unquote, "mental trauma," but is physically okay.

So, nuns are taking on the Vatican. A large group of American nuns was criticized in a recent Church report. They were accused of promoting, quote, "radical feminist themes incompatible with the Catholic faith." The report also blasts the nuns for not campaigning against abortion and gay marriage as vocally as the Church would have liked.

Now, the Vatican says it's hoping for a mutual understanding. To kind of digest all this, I want to bring in John Allen, our senior Vatican analyst. Hi there, John. I understand you pretty much just wrapped up an exclusive interview with the Vatican official in charge of this report we've been talking so much about. So, what did he have to say?

JOHN ALLEN, CNN SENIOR VATICAN ANALYST: Yes, that's right. We're talking about cardinal William Lavada, who's an American. He's the head of the Vatican's ultra powerful congregation for the Doctrine of the Faith, which is the agency that launched this crackdown on the leadership Conference of Women Religious which brings together the leaders of act 80 percent of the groups of religious women in the States.

And basically, Kate, to bottom line it for you, I think both sides in the meeting today would say there was an open cordial atmosphere. But what's left unsaid, neither side is really prepared to budge. I think it's very clear that the sisters believe they're being asked to engage in a kind of uncritical blind obedience they're not willing to do. And on the Vatican side, Cardinal Laveda certainly affirmed in our conversation this afternoon that from his point of view, a group that officially represents the Church has an obligation to do that in a way that's consistent with Church teaching.

So, basically nice atmospherics today, but no suggestion that this dispute is going to be resolved any time soon.

BOLDUAN: In your conversation with the cardinal did he say that there was an understanding or that they understand the nuns' perspective or there was any changing in position? Because I'm not getting a sense from you that either side's budging.

ALLEN: No. I think basically what he said was that, you know, the Vatican obviously -- and he personally loves and respects all the hard working sisters out there, that he emphasized this is not an attack on nuns from their point of view. This is a clamp-down on one specific organization that they believe has deviated in significant ways from core Catholic teachings on things like same- sex marriage, other themes of sexual morality, the ordination of women as priests and so on.

So while, you know, he would emphasize sort of compassion and concern for sisters, I did not come away from this conversation with any sense that there's any wiggle room on matters of substance. Which is why I say I think it's going to be very difficult to figure out what the end game here is. Does it involve in some way this organization sort of walking away from the official Church?

BOLDUAN: That would be pretty -- that would be pretty big news, I would say. Do you get a sense of why -- this report we're talking about and kind of the reason the group of nuns went to the Vatican to kind of hash this out -- why the report came out now? This seems to be a struggle with regard to Catholic teaching that's been going on for decades.

ALLEN: Yes. I asked Cardinal Lavada that very question. Basically his answer is, things don't move as quickly in Rome as they do in other parts of the world. That, yes, these things have been hanging around for quite a while.

Four years ago, they began an assessment of this outfit, the LCWR. So, that's a full presidential administration all in and of itself. You know, George Bush was still president of the United States when this thing began. And now it has sort of reached a climax. And I think the thing to take away from this is that this really isn't just about the Vatican versus a specific organization of nuns in the states, although it is that. But there are also much-deeper sort of divergences here about what it means to be Catholic in the 21st century. From the Vatican's point of view, this is about fidelity to a tradition that goes back through 2,000 years of history. Whereas, from the point of view of more progressive or liberal Catholics, who are inclined to be sympathetic to the nuns, this is about trying to bring the church up to date and break new ground, to be Catholic in a new way.

And so, even if you could kind of paper over the difference with this organization, that much-deeper clash that runs through a lot of debates in the church, I honestly don't see that going away.

BOLDUAN: I don't see it going away, but I think there's a lot more to talk about here. It's very interesting that this meeting occurred and it's great -- can't wait to see your interview. I know you kind of just absolutely wrapped it up with the cardinal. So thanks for getting out to speak with us.

John Allen, talk to you soon.

In Australia, very different story. It turns out a dingo did steal her baby. I'm talking about a famous case from the 1980s. You probably remember the story. A mom was convicted and served time for her baby daughter's death. The mom always claimed a wild dog, called a dingo, stole the baby. And finally, after more than 30 years, the coroner has made it official. That's exactly what happened. Listen to the mom describe her feelings.

(BEGIN VIDEO CLIP)

LINDY CHAMBERLAIN-CREIGHTON, DAUGHTER KILLED BY DINGO: Yes, well, it's been a long time coming, obviously. But finally got someone with common sense and the ability to research and read and come to an intelligent finding. And I wonder, is that because it was a lady?

(END VIDEO CLIP)

BOLDUAN: Coming up, some high-profile cases of parents disciplining their kids, bringing -- really brings the question to mind, how far is too far? We have the "Supernanny" to talk about what you can do as a parent. We'll speak with her, coming up.

(COMMERCIAL BREAK)

BOLDUAN: We've been covering some controversial parental abuse allegations this week. Probably saw this video, a California man who was videotaped hitting his step son with a belt during a game of catch. A mega-church pastor, then arrested for attacking his daughter after an argument about going to a party. These instances are far from the norm, of course, but did spark a debate in our morning editorial meeting about -- it's kind of the age- old question of proper parenting.

Parental family expert, Jo Frost -- who else would we want to bring in to talk about this? -- joining me from Irvine, California.

Ms. Frost, you were well known as the "Supernanny" from the ABC reality show. You help hundreds, if not thousands of families, kind of deal with this big question of which is the right way to parent my child, which is the wrong way? And I'm sure this is a question you often get, is, you know, is corporal punishment at school or at home right? Does it work? What do you think?

JO FROST, SUPERNANNY: I don't think it's right. It doesn't work. And we know for a fact that there are hundreds, if not thousands, of cases where this leads to damage in relationships within the family dynamic. There are positive ways of being able to parent and communicate with your children where one is able to discipline and give consequences that allow our children to think before they act in way that nurtures. In the case with what has just come about with respects to the neighbor video, the man with his step son, that man's behavior is abusive. He chose to control and intimidate and bully his son in an innocent game that you would expect a father to enjoy with his son playing baseball. So that -- really what we saw was something very disturbing. And I really feel that we need to educate parents in understanding the difference between how we, in a positive way, parent and raise our children with love and nurture so that they grow up with good strong family values and morals and ethics and, at the same time, understand the difference between parents who need the education and parents who are being, quite frankly, abusive to their children.

BOLDUAN: Let's talk about some of the advice you give to parents and families you're working with. I mean, parents who spank their children are not necessarily bad parents. But what do you tell them? What is your best advice to discipline, you know, perhaps an out-of-control child? FROST: The reality is that a parent needs to look at the boundaries and the rules that are put in place and the importance of being able to follow through and be consistent on consequences that will be effective with their children. When you start to lose composure and control, and results in hitting your children, what you do is damage the relationship and the family dynamic. And then a lot of healing needs to take place. And then we see an awful amount of disrespect.

And I think it's incredibly important for parents to understand that when you are talking to your children, whether they be 8 or 5, or even teenagers, that somebody has to be the adult in the room. Somebody has to be the one. We want it to be the parent who is able to have a very fluid conversation with your child, be able to express how they feel. And let's face it, everybody, you know, feels anger. And that is -- is an emotion. And we, you know, in a very healthy way, can express how we feel angry about something, whether that's facial disapproval. sometimes we raise our voice in anger. But when our anger has an impact on our children that hurts them and becomes abusive, then actually that's more of a serious problem that we need to address. You know, I would --

(CROSSTALK)

FROST: Sorry.

BOLDUAN: Go ahead. I'm sorry.

FROST: I would advise every parent, you know, communication that's healthy means that one is able to listen to each other and to put your point across with what's necessary. And when it becomes -- and you see those first signs of emotions becoming heated up and escalated, one needs to recognize that you are not going to productively resolve any situation where you have anger in a room where two people are not able to sit down amicably and resolve that situation.

BOLDUAN: And real quick, do you think, in your experience, that you often find that it's more parents who need kind of -- I don't know if we want to call it training -- or if it's children who need training? It's obviously a two-way street when you're talking about a family dealing with disciplinary issues.

FROST: I think it's incredibly important that we educate parents and continue to educate parents, how to successfully continue to communicate with their children and lead by example. So that we are -- you know, the foundation is that we become very good role models for our children and they exhibit that behavior based on what they're being taught from their parents. And we have to be that in order to be able to maintain healthy functional relationships within the family dynamic.

You know, with the situation with -- you know, Minister Dollar, obviously a situation there got very heated and escalated. And I don't know the facts to be apt to comment on exactly what happened, but I do know whatever happened that, you know, this man who speaks the word of God and, you know, has many followers, you know, is a dad. You know? He's a dad. You know, he's a husband. He's a father to his daughters.

BOLDUAN: Right.

FROST: And, you know, we all, at some stage, you know, get frustrated. But being able to communicate healthy is what's important.

BOLDUAN: Jo Frost, we'll have to leave it there. Joining me from California. You'll always be the "Supernanny" in our eyes. Thank you so much.

FROST: Thank you.

BOLDUAN: So coming up, all the fumes coming from those diesel engines may be causing cancer. We have details from a new report, next.

(COMMERCIAL BREAK)

BOLDUAN: So here's something to think about the next time a big bus or a big truck drives by, spewing that exhaust into the air you can always smell and often see. New information -- information out today about diesel fumes and how it may cause cancer. That's the word from a global cancer group that's part of the World Health Organization.

Elizabeth Cohen is here to kind of work through this all.

So what's changed here? We often hear about, you know, fumes not being good for us but --

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: We all know standing next to a truck and inhaling diesel fumes are about the best thing in the world.

So the World Health Organization looks at different possible carcinogens from time to time and decides how to label them. So the news here is that the World Health Organization has always called diesel a probable carcinogen. They've said it's probably a carcinogen. And today, they announced, yep, it's a carcinogen. That may seem like a relatively small difference, but, you know, obviously a lot of people look to the World Health Organization. If they say something's a carcinogen, that has a lot of meaning.

Now, we talked to the folks who actually manufacture diesel fuel and they say they spend billions of dollars to make their product as safe as it can be and technology has made diesel fuel a lot safer now than it used to be.

BOLDUAN: Than it used to be. What's the impact on us? When you get this new conclusion from the World Health Organization, what's the impact?

COHEN: It makes you think, boy, I want to stay away from these fumes.

BOLDUAN: Right.

COHEN: Right. One of the -- it's going to be an impact sort of in a big-picture way. For example, maybe folks who run fleets of city buses will now decide to use natural gas instead of diesel. That might be one impact. There are a variety of sort of these big-picture ways that people may make choices in how to use less diesel.

BOLDUAN: We always try to offer some advice. You do as well to consumers and everyone. But what -- is there anything anyone can do in the near term on their own to reduce their exposure other than not stand by a city bus?

COHEN: Exactly. One thing you can do if you're concerned about your children and diesel fumes, talk to your school system. Some school systems have no-idle rules.

(CROSSTALK)

COHEN: School buses line up and idle for a long time. Some school systems put an end to that and said turn your engines off. See if your school system has that rule.

BOLDUAN: That's a very interesting point. A lot of it coming down to, as you always try to say, you taking action and doing something about it.

COHEN: Sometimes that's what has to happen.

BOLDUAN: That's right.

Elizabeth Cohen, thank you.

COHEN: Thanks, Kate.

BOLDUAN: Thank you.

So running out of money. A major U.S. city could go broke this week. We'll tell you why Detroit is on the brink of bankruptcy.

(COMMERCIAL BREAK)

BOLDUAN: By the end of the week, the city of Detroit could be bankrupt. Some are saying, how did this happen? Well, the city is suing the state of Michigan over a power-sharing agreement and past money owed. Now the state is firing back. It says, if the lawsuit isn't dropped, $35 million in revenue sharing won't make it to Detroit as planned this week. A lot of back and forth here.

The mayor wants the lawsuit withdrawn. The city's lawyer and the city council need to be telling the mayor to not back down on this.

Here's the mayor at a meeting yesterday. Have a listen.

(BEGIN VIDEO CLIP)

DAVE BING, (D), MAYOR OF DETROIT: We have no money to run the city. So we have to figure out once again what do we do do, on an ongoing basis. We are in a crisis. If we don't get the money from the state -- and I don't think we can get it from anywhere else -- we run out of money, and we put this city in a perilous situation. Don't want to do that.

(END VIDEO CLIP)

BOLDUAN: Pretty dire prediction.

Joining me is Charles Pugh. He's the head of Detroit's city council.

Mr. Pugh, thank you for joining me this morning.

The mayor says he can make one more payroll, but the city is broke by Friday. Do you agree?

CHARLES PUGH, DETROIT CITY COUNCIL: Not really. The money is there. It's is an escrow account, sitting there, but the state of Michigan won't let us draw it down, which is an unfortunate situation. The state treasurer, as well as the governor, has expressed both of their displeasure in the fact that our main city attorney has asked for a judge to interpret our city charter and also state law that says that we can't -- no municipality within the state of Michigan can enter into any kind of agreement, a contract, with another entity that owes it money. So the state of Michigan does have debts on record, at least, $8 million. And then there's another outstanding debt that we have been talking about for years to the tune of $220 million that is disputable. So I'd be willing to take the $220 million off the table. But in terms of an outstanding water bill and other municipal parking bills that are owed, it would be nice for the state, that does have a surplus, by the way, to go ahead and take care of that debt. But also, in the meantime, while we're negotiating what we receive as a payment on that debt, we should allow the city's finances to continue the way we've agree to and what we've set up.

(CROSSTALK)

PUGH: Which means, I would like the state of Michigan to draw down that money.

BOLDUAN: Real quick on this. Even if it's not bankrupt by this Friday, or this month or this week, can you tell the rest of us, who don't live in this city, who haven't been at these council meetings --

PUGH: Right.

BOLDUAN: -- kind of big picture, how did you get to this point? The recession hit everyone. Hit cities across the country, but bankruptcy? PUGH: Absolutely. Yes, well, we're not on the verge of bankruptcy. We have been working for years, at least the last two and a half years, since we've been on this council, to deal with the imbalance of the fact we lost a lot of population. We had one of the highest unemployments in the country. High unemployment means you're not bringing in income tax. We had one of the highest foreclosure rates in the country, so we're not bringing in property tax. Then with a lot of the population that we've had, that's also income and property tax. We -- our costs are not in line with our revenues. We've been trying to fix that problem. Then, we have health care and pension that is exponentially increasing each year. And so --

(CROSSTALK)

PUGH: So we are trying to fix all of those problems.

BOLDUAN: We're running out of time. But I want to ask you one question.

PUGH: Yes.

BOLDUAN: I'm so sorry.

(CROSSTALK)

PUGH: It is a complicated problem, Kate.

BOLDUAN: It is a complicated problem.

PUGH: Yes, it is.

BOLDUAN: But many people watching this, saying, it sounds like political gridlock is the real problem. Is it just politics at play?

PUGH: Right. It is politics. The state of Michigan, unfortunately, is not happy with our city attorney's assessment of a contract that we have entered into with the state. They're upset, as you might expect them to be -- because it throws a wrench in what we're all trying to do. But until that's settled in the courts we should continue full steam ahead making sure the city can pay its bills, that we don't run out of money. If we do run out of money on Friday, it will not be the city of Detroit's fault. It will be the fault state of Michigan's fault. But I think we can resolve this issue before Friday and the state will allow us to continue operations.

BOLDUAN: All right. Mr. Pugh, thank you for coming out and speaking with me. The head of the Detroit city council.

We will reach out and try to speak to the governor as well. But meantime, the residents of Detroit stuck in the middle.

Councilman Pugh, thank you so much for your time.

PUGH: Thank you, Kate. BOLDUAN: The search for black holes. NASA is setting out into space to get a good luck at the most mysterious parts of the universe.

(COMMERCIAL BREAK)

BOLDUAN: A fast-moving wildfire raging through northern Colorado has scorched more than 33,000 acres. That's bigger than the nearby city of Fort Collins. We've been watching it pretty closely. One person has been killed. Officials say things are looking better than they thought. But at this point, the fire has not been contained.

I want to bring in Chad Myers.

You're here with me now. I feel like we keep hearing about more and more wildfires. This thing in Colorado, it feels like it's been going on for a while.

CHAD MYERS, AMS METEOROLOGIST: Yes. This one started with lightning. There were so many of them. Most of them were down in New Mexico. But the pictures are tremendous. I can't stop watching them. I'm watching the feeds here back in our satellite room. Just one spark after another jumping, making another fire. Firefighters trying to get a hold of that fire. The speed of the fire -- some speeds yesterday, 40 feet per minute these fires were moving.

BOLDUAN: Is it wind speed?

MYERS: The wind calmed down now, but it was wind speed.

BOLDUAN: It's not contained yet, but they are still working on it.

Another story, NASA is on the hunt for black holes. A new star telescope will open a whole new window into the universe and shed light on black holes. What makes this launch different is the space telescope will be launched from a jet into space. This is pretty neat. Is it going to bring us anything?

MYERS: Can we take a picture of the black hole?

(LAUGHTER)

(CROSSTALK)

MYERS: It's probably going to be black. No. But we can get images, and what this new star is going to look for are the x- ray particles flying out of black hole. Let me show you how it works.

BOLDUAN: Please do.

(LAUGHTER)

MYERS: This is cool stuff. Let me show you how this thing gets space. We're always at Cape Canaveral and showing you rockets going up. Rarely would we show you a rocket under a Lockheed L1011. It launches here. The rocket launches here at about 39,000 feet and then the power of the rocket takes off and the rocket goes into space. Inside the rocket is this. That's the black hole- rendering artist rendition of what they believe it's going to look like, all from that rocket ship like there. We have pictures -- You can have them. Maybe you can put them up for me -- of what this thing looks like. It's an impressive satellite. It will be about $165 million by the time it's done. We think we have NASA's picture right there. There we go. Takes a week to get to where it's going to go. It's going to see what a black hole might really do to the inner part of a galaxy or where the light goes, where the energy comes from. Does it get sucked into one big spot and then it doesn't get ever out again. Cool stuff.

Einstein was wrong about black holes. He said they couldn't exist. Now we know they do. Now soon, we'll get pictures, or at least images.

BOLDUAN: How soon? That's my question.

(LAUGHTER)

MYERS: It'll take a little while. Could be a month or two. We'll see something.

BOLDUAN: We'll wait. We'll bring Chad back in to walk us through the pictures when they come in. Our space enthusiast.

That's all for me today, in for Suzanne Malveaux. Thanks so much for joining me. I'm going to toss it off to my friend, Brooke Baldwin.

I never get to see you in person.

BROOKE BALDWIN, CNN ANCHOR: I know. It's so nice. Last time I saw you was standing in front of Buckingham Palace.

(LAUGHTER)

(CROSSTALK)

BALDWIN: Kate Bolduan, thank you so much.

Good to see all of you.