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CNN Live Saturday

FBI Uncovers Possible Mole At Pentagon; Protests Already Beginning In New York City

Aired August 28, 2004 - 16:00   ET

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

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


FREDRICKA WHITFIELD, CNN ANCHOR: Is there a spy at the Pentagon? The U.S. investigates its own.
Protest in advance of the Republican convention, a live report from the Brooklyn Bridge coming up. And do you know who this man is? If you pay attention to the Olympics, you have probably--that man right there--you have probably seen his work. Hello and welcome to CNN LIVE SATURDAY. I'm Fredricka Whitfield. In a half hour, investing in real estate, buying a second home. Should you? That's our topic today on DOLLARSIGNS. But first, here are the headlines.

In Iraq's Sunni Triangle, U.S. fighter jets strike insurgent positions in Fallujah. So far no word on casualties and CNN confirms two French journalists are being held hostage in Iraq.

Russia now says it may be two acts of terrorism. The country's Federal Security Service confirms finding traces of explosives in the wreckage of both Russian jets that went down on Tuesday. 89 people died in the crashes.

And Tropical Storm Gaston is swirling off the South Carolina coast. Forecasters say it could make landfall near Charleston sometime tomorrow. A tropical storm warning is in effect in that area.

We begin in New York.

The city is already on edge as it gears up for the Republican convention. Today, it was rattled even more with news of a thwarted bomb plot that may have targeted several locations. CNN's homeland security correspondent Jeanne Meserve reports.

All right. We're having a problem with that story, but we do have Jeanne Meserve live from outside Madison Square Garden with more on this investigation. I presume that's the one--that's the item that has rattled things, as the Republican convention gets under way in just about two days, Jeanne.

JEANNE MESERVE, CNN CORRESPONDENT: Fredericka, the alleged plot involved specifically an attempt to blow up the Herald Square subway station here in New York City, which is just a short distance away from the Republican National Convention site, Madison Square Garden. According to the police, two men are involved. They were arraigned in court this afternoon after being arrested yesterday. They are identified as James El-Shafay, he is a 19-year-old U.S. citizen and 21-year-old Pakistani. His name, Shahawar Matin Siraj. He worked at an Islamic bookstore where he made the acquaintance of a police informant. Now, according to the police, the men had scouted three police stations and a prison in Staten Island as well as the Verrazano Bridge. They also had taken a look at several subway stops in Manhattan including the one at Herald Square. When the men returned to that location last week, that was when police decided that it was time to take them into custody. Now, as to their motive, the police commissioner Ray Kelly says they made statements against the system, against some of the commercial shops at that location, that they had made anti-American and anti-Semitic remarks, and he said that the Republican National Convention did not figure into their plans. He said there was no indication that these individuals were affiliated with any terrorist organization and he said they did not have any explosives. Now, they did appear in court this afternoon. The mother of El-Shaffay wept during the court proceedings. The uncle of the other individual, Siraj, expressed disbelief at the charges when he came out, saying that his nephew liked America, why else would he have come to this country. Are these people big fish or small potatoes? Police commissioner Ray Kelly wouldn't characterize them either way, but say whether they were amateurs or they were professionals, their intent was to do damage and kill people. Fredricka, back to you.

WHITFITIELD: And, Jeanne, you mentioned that they're not willing to say these two arrested had anything to do with an international terrorist group, however, are any other arrests expected?

MESERVE: No. Commissioner Kelly did say that there was one other individual who was not being charged in this. We don't have any specifics on who that individual may be. But we can't stress too much the fact that there does not appear to be any affiliation with any international terrorist organizations. Fredricka?

WHITFIELD: All right. Jeanne Meserve in New York. Thanks so much.

Well, the Republican convention doesn't even begin until Monday but protesters are already out in force in the Big Apple to highlight their differences with the Bush administration. Supporters of Planned Parenthood are among them. Thousands marched across the Brooklyn Bridge today and CNN's Jason Carroll reports on that.

JASON CARROLL, CNN CORRESPONDENT: And Fredricka, this is where they all ended up, right here at City Hall. The rally actually ended about 15 minutes ago. It was very vocal but it was peaceful as well. The rally actually began earlier this morning at a park in Brooklyn. That's where thousands of people gathered. We don't have a final estimate yet but organizers were predicting that 10,000 people would show up for this event. They staged a rally in Brooklyn. Then, after that, the entire group marched across the Brooklyn Bridge. At one point, they were met by a group of people who actually are opposed to abortion and there was thoughts perhaps there would be trouble there. There was definitely a strong police presence out here. We reached out to the New York City Police Department a little while ago. They tell us they did not have to end up making any arrests. So perhaps that's good news for what's to come. And in terms of what's to come, tomorrow will be what is expected to be the largest demonstration, some 250,000 people expected to show up for an anti-war demonstration, and march across Manhattan. In fact, they'll march right past Madison Square Garden where the Republican National Convention will be held on Monday. In expectation of this, police have set up a temporary holding pen on the west side of Manhattan in the event they do have to make large scale arrests but police officials are hoping that that demonstration tomorrow ends up being just as orderly as this demonstration today. However, there is one point to all of this. The group that is holding that demonstration tomorrow had asked for a permit in Central Park to have a rally after the march. That permit was denied although we spoke to a number of people out here today, Fredricka, who tell us they're going to show up at Central Park tomorrow anyway. So we're going to keep our eyes on what may be happening there in Central Park tomorrow. Fredricka, back to you.

WHITFIELD: And is the thinking, Jason, that they feel like they will outnumber authorities and so majority rules despite not having a permit?

CARROLL: You know, we're going to have to wait and see what happens in terms of the number of people that show up at Central Park. It's anyone's guess. The organization that's putting together this large scale demonstration for tomorrow at one point during a press conference asked everyone to make sure that they follow what police are saying and not go to Central Park. But then you have a lot of other people who say they're going to end up there anyway. In terms of numbers, we're just going to have to wait and see.

WHITFIELD: Alright. Jason Carroll from New York. Thanks so much.

Well, thousands of supporters greeted the President in Ohio today. President Bush is on his third bus tour of that key state. He's made stops in towns like Troy and Lima and right now the bus is apparently in Columbus Grove and that's where we find our CNN White House correspondent Suzanne Malveaux traveling with Mr. Bush and she joins us on the telephone. Suzanne?

SUZANNE MALVEAUX, CNN CORRESPONDENT: We are heading to Fort Meigs State Memorial, it's in Perrysburg, which is a suburb of Toledo. This is our third and final stop. This is considered really the I-75 corridor, the backbone of Republican strong-hold of Ohio. And you know Ohio is such an important state for the President, this is our third bus trip so far, to the Buckeye State. The President calls these trips fertilizing the grassroots. That is basically getting out there and rallying the loyalists, the big supporters and try to get them to go out door-to-door campaigning, trying to convince some of those swing voters, those undecided votes. One of the things the President has really been focusing on here is the economy. Because, as you know, in Ohio, an incredible number of people have lost their jobs over the last three and a half years. But we are seeing unemployment dip down a little bit and there is some economic growth, and that is what the President has been stressing today.

WHITFIELD: And Suzanne, you mentioned earlier the President will be making a return to that very important battleground state of Ohio. Why? MALVEAUX: Well, it is because it is critical. It carries 20 electoral votes. But this is a place where the President won by just 4 percent back in 2000 and also this is also a place where the polls are showing the President is in the lead, a slight lead, 49 percent for Bush to 44 percent for Kerry. One of the things they're trying to do in terms of strategy, is not only emphasize policy but also the President's personality, to put him out there. We saw at a stop called the Spot, where he bought a hamburger, whipped out a $20 bill, bought a hamburger, shook some hands, Bush aides and campaigners really say this is the strong suit of the President, putting him out there before the people and allowing those loyalists to go out there and essentially campaign for him.

WHITFIELD: Suzanne Malveaux traveling with the President, now in Ohio, soon to make his way to New York and then back to Ohio by next weekend.

The Democratic nominee is more than 2,000 miles away from President Bush. Senator John Kerry is courting voters in Washington State. Kerry held a rally at the Tacomadome today and yesterday, he spoke to voters in Everett. The latest state polls show Kerry/Edwards ahead of the Bush/Cheney campaign. Republicans held their own rally in Tacoma. They had a waffle feed(ph) to highlight their belief that Kerry flip-flops on the issues.

Evidence has surfaced of a possible spy operating inside the Pentagon. We'll have the latest on the investigation in a live report on Washington, and then a bit later, we'll introduce you to one gold medalist who you probably haven't heard of. He's 75 years old and a 12-time Olympian.

And at 4:30, the who, what, when, where and why of real estate investing. Just email your questions to DOLLARSIGNS@CNN.COM or you can call us at 1-800-807-2620. We'll be right back.

(COMMERCIAL BREAK)

WHITFIELD: Washington is buzzing today over a possible espionage case involving America's closest ally in the Middle East. The FBI is investigating whether a Pentagon analyst sneaked secret material to Israel. Here's CNN's Kathleen Koch.

(BEGIN VIDEOTAPE)

KATHLEEN KOCH, CNN CORRESPONDENT (voice-over): Headed to a campaign swing through Ohio, President Bush did not respond to questions about reports of an espionage investigation at the Pentagon. His spokesman, Scott McClellan only saying, "Any time there is an allegation of this nature, it is a serious matter." Senior U.S. officials say an FBI investigation lasting many months has found evidence an employee working in the Pentagon may have passed classified information to Israel. While one official contends he may have been in a position to influence Bush administration policy towards Iran and Iraq. Another claims an analyst in an undersecretary's office is, quote, "not in a level to influence policy." The Pentagon in a statement said, "DoD has been cooperating with the Department of Justice on this matter for an extended period of time. It is the DoD's understanding that the investigation within the DoD is limited in its scope." Israel is refuting the charges, citing the case of convicted spy Jonathan Pollard.

UNIDENTIFIED MALE: Since the Pollard case 20 years ago, there was clear and final decision not to spy against the United States government or in the United States, and therefore I am 100 percent confident that there is no Israeli involvement in this case.

KOCH: The analyst allegedly passed classified documents to Israel through a pro-Israeli lobbying group, the American Israel Public Affairs Committee. AIPAC calls this, quote, "false and baseless" and says it is cooperating with the government.

(END VIDEO TAPE)

(ON CAMERA) At this position, no charges have yet been filed and government officials say that, indeed, there not only has been no decision made to prosecute anyone but it's possible no charges at all may be filed. And they say it's also possible that if charges are filed they may not be espionage charges. Fredricka?

WHTIFIELD: So then the investigation is still ongoing, what would the next step be if possibly no charges?

KOCH: Well, Fredricka, this is a very complex case. And there were really a lot of unanswered questions here, which is perhaps why we're hearing they may not go forward with any charges at all. According to Washington insiders, it's really not unusual for governments who are friendly to the United States to have access to certain classified U.S. information. So if indeed this is correct, if these parties did exchange information, they may not have been aware that they were committing any form of espionage. And if indeed the information that was passed on was simply confidential information than that may not have been even a violation of U.S. law.

WHITFIELD: And from the White House, what's the belief of the kind of impact this might have on the Bush administration?

KOCH: Well, we have been asking the White House that today, but really, no response. Spokesman Scott McClellan simply saying that this is not the time to comment on an ongoing investigation.

WHITFIELD: All right. Kathleen Koch from the White House. Thanks so much.

U.S. Secretary of State Colin Powell will not attend the Summer Games closing ceremonies on Sunday. The decision came hours after anti-Iraq war protesters marched in central Athens. CNN's Michael Holmes has the story of one man, however, who will not miss the closing ceremonies. In fact, he hasn't missed an Olympics in more than 40 years

(BEGIN VIDEOTAPE)

MICHAEL HOLMES, CNN CORRESPONDENT (voice-over): Coming home from another Olympic photo shoot, Andreas Kalogeropoulos in his cluttered office, a lifetime of sport on film.

ANDREAS KALOGEROPOULOS, OLYMPIC PHOTOGRAPHER (through translator): After every Olympics, my mind is with the next Olympics. Every night I'm thinking about the next one. I dream about it.

HOLMES: Andreas has covered every Olympic since Rome, 1960. 12 Olympiads. Not even heart surgery could stop him.

KALOGEROPOULOS: When I went to Atlanta in '96 I had been out of the hospital 12 days after having my fifth heart bypass. I escaped from the hospital and went to Atlanta.

HOLMES: And here in Athens he stands alone among photographers.

KALOGEROPOULOS: There was one photographer, a German guy who said, "Haven't you stopped yet? I want to catch up with you." And I said, "There's no way you'll get there."

HOLMES: Ask him for a photo, from, say, Mexico, 1968, and it will be here somewhere.

How much has photography changed between Rome and Athens?

KALOGEROPOULOS: The difference between night and day.

HOLMES: No zoom lenses, digital photography or motor drives then, just this trusty RolleFlex. Other treasures are here too. An Olympic gold medal. Yes, a real one. Awarded to him by the IOC for his tenth Olympics, in Atlanta. Another award from Greek Olympic medalists for a lifetime of service. There are so many memories, the worst, he says, covering the slaying of Israeli athletes in Munich in 1972, the best, the Olympics coming home to Greece. But after these games, there will be just memories. Andreas Kalogeropoulos is hanging up his camera.

KALOGEROPOULOS: I'm very upset. But I'm 75 now and have had five heart bypasses and I have to stop. I should have stopped after Sidney but I couldn't miss these Games.

HOLMES: But you get the feeling it won't be much of a surprise if the name Kalogeropoulos shows up on a photograph with the dateline Beijing, 2008. Michael Holmes, CNN, Athens.

(END VIDEO TAPE)

WHITFIELD: Well, the risk of losing your home due to a foreclosure could be slightly higher depending on where you live. Up next, find out which states are most effected.

And coming up in about 10 minutes, if you're on the other end of the spectrum and you're thinking about getting into real estate as an investment, well here is your chance. Email your questions to dollarsigns@cnn.com or you can call us at 1-800-807-2620, and we'll be right back.

(COMMERCIAL BREAK) WHITFIELD: Well, DOLLARSIGNS is about to begin. Don't forget to email your questions to dollarsigns@cnn.com or call us at 1-800-807- 2620.

As we heard earlier, President Bush is talking about the economy and in the battleground state of Ohio today. And right next store in Indiana, financial worries are a big concern. The state has the dubious distinction of leading the nation in foreclosure rates. Our Ceci Rodgers looks at that problem.

(BEGIN VIDEOTAPE)

CECI RODGERS (PH), CNN CORRESPONDENT (voice-over): Detective Tracy Harbin is delivering notices of foreclosure in Merrillville, Indiana. She's already posted 20 and has 15 more to go.

TRACY HARBIN, DETECTIVE: When we arrive at someone's house and we're talking about mortgage foreclosure, you're taking away their home, their property and a person's home is basically their palace. You never know what they've had to go through, so you always have to be just mindful of that.

RODGERS: Harbin is telling this homeowner he could lose his house at a sheriff's auction in October.

UNIDENTIFIED MALE: Is there no other way to avoid that at this point?

RODGERS: Vince Mattioli lost two jobs in the space of two years as a salesman for steel mills and other industrial companies in the area.

VINCE MATTIOLI: We're praying for miracles, several miracles, for a new job, for a miracle for the house, that we're able to keep the house.

RODGERS: It's a common story in Indiana which has the United State's highest foreclosure rate. Contrast that with California and Nevada, states with low foreclosure rates.

(on camera) Nationwide, foreclosure rates are highest in areas that have lost a significant number of manufacturing jobs, such as Michigan, Ohio and here in Indiana.

(voice-over) In some parts of the state, foreclosures have reached crisis proportions. In Lake County, Indiana, there have been nearly 1300 foreclosures so far this year, on a pace to break last year's record.

DOUG DUNCAN, MORTGAGE BANKERS ASSN.: The most important factor in foreclosures is always employment and the structural trends that we've seen affecting states with a high manufacturing component has been the biggest factor in their employment.

RODGERS: Foreclosure rates have stabilized nationwide but some question whether that will continue because more than half the nation's mortgages are new, written in the past three years as homeowners rushed to refinance at low interest rates.

JAY NEVELOFF, KRAMER LEVIN: They were also taking extra money out of their home so they had money to pay for education, to buy things, to fix up the house or buy a new car.

RODGERS: In other words, it isn't yet clear whether homeowners took on too much debt that could come back to haunt them. C. C. Rogers for CNN Financial News, Merrillville, Indiana.

(END VIDEO TAPE)

WHITFIELD: Well, not everyone is having problems in this economy, so on DOLLARSIGNS, another way of watching your money grow, we're talking specifically about real estate investing. And guess what? In some cases, all you need is $1,000. Is it a good idea for everyone? And what about that beachfront property you've had your eyes on as a second home? To invest or not to invest? Call us in about five minutes at 1-800-807-2620 or send us your email to dollarsigns@cnn.com. We'll be right back.

(COMMERCIAL BREAK)

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Aired August 28, 2004 - 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: Is there a spy at the Pentagon? The U.S. investigates its own.
Protest in advance of the Republican convention, a live report from the Brooklyn Bridge coming up. And do you know who this man is? If you pay attention to the Olympics, you have probably--that man right there--you have probably seen his work. Hello and welcome to CNN LIVE SATURDAY. I'm Fredricka Whitfield. In a half hour, investing in real estate, buying a second home. Should you? That's our topic today on DOLLARSIGNS. But first, here are the headlines.

In Iraq's Sunni Triangle, U.S. fighter jets strike insurgent positions in Fallujah. So far no word on casualties and CNN confirms two French journalists are being held hostage in Iraq.

Russia now says it may be two acts of terrorism. The country's Federal Security Service confirms finding traces of explosives in the wreckage of both Russian jets that went down on Tuesday. 89 people died in the crashes.

And Tropical Storm Gaston is swirling off the South Carolina coast. Forecasters say it could make landfall near Charleston sometime tomorrow. A tropical storm warning is in effect in that area.

We begin in New York.

The city is already on edge as it gears up for the Republican convention. Today, it was rattled even more with news of a thwarted bomb plot that may have targeted several locations. CNN's homeland security correspondent Jeanne Meserve reports.

All right. We're having a problem with that story, but we do have Jeanne Meserve live from outside Madison Square Garden with more on this investigation. I presume that's the one--that's the item that has rattled things, as the Republican convention gets under way in just about two days, Jeanne.

JEANNE MESERVE, CNN CORRESPONDENT: Fredericka, the alleged plot involved specifically an attempt to blow up the Herald Square subway station here in New York City, which is just a short distance away from the Republican National Convention site, Madison Square Garden. According to the police, two men are involved. They were arraigned in court this afternoon after being arrested yesterday. They are identified as James El-Shafay, he is a 19-year-old U.S. citizen and 21-year-old Pakistani. His name, Shahawar Matin Siraj. He worked at an Islamic bookstore where he made the acquaintance of a police informant. Now, according to the police, the men had scouted three police stations and a prison in Staten Island as well as the Verrazano Bridge. They also had taken a look at several subway stops in Manhattan including the one at Herald Square. When the men returned to that location last week, that was when police decided that it was time to take them into custody. Now, as to their motive, the police commissioner Ray Kelly says they made statements against the system, against some of the commercial shops at that location, that they had made anti-American and anti-Semitic remarks, and he said that the Republican National Convention did not figure into their plans. He said there was no indication that these individuals were affiliated with any terrorist organization and he said they did not have any explosives. Now, they did appear in court this afternoon. The mother of El-Shaffay wept during the court proceedings. The uncle of the other individual, Siraj, expressed disbelief at the charges when he came out, saying that his nephew liked America, why else would he have come to this country. Are these people big fish or small potatoes? Police commissioner Ray Kelly wouldn't characterize them either way, but say whether they were amateurs or they were professionals, their intent was to do damage and kill people. Fredricka, back to you.

WHITFITIELD: And, Jeanne, you mentioned that they're not willing to say these two arrested had anything to do with an international terrorist group, however, are any other arrests expected?

MESERVE: No. Commissioner Kelly did say that there was one other individual who was not being charged in this. We don't have any specifics on who that individual may be. But we can't stress too much the fact that there does not appear to be any affiliation with any international terrorist organizations. Fredricka?

WHITFIELD: All right. Jeanne Meserve in New York. Thanks so much.

Well, the Republican convention doesn't even begin until Monday but protesters are already out in force in the Big Apple to highlight their differences with the Bush administration. Supporters of Planned Parenthood are among them. Thousands marched across the Brooklyn Bridge today and CNN's Jason Carroll reports on that.

JASON CARROLL, CNN CORRESPONDENT: And Fredricka, this is where they all ended up, right here at City Hall. The rally actually ended about 15 minutes ago. It was very vocal but it was peaceful as well. The rally actually began earlier this morning at a park in Brooklyn. That's where thousands of people gathered. We don't have a final estimate yet but organizers were predicting that 10,000 people would show up for this event. They staged a rally in Brooklyn. Then, after that, the entire group marched across the Brooklyn Bridge. At one point, they were met by a group of people who actually are opposed to abortion and there was thoughts perhaps there would be trouble there. There was definitely a strong police presence out here. We reached out to the New York City Police Department a little while ago. They tell us they did not have to end up making any arrests. So perhaps that's good news for what's to come. And in terms of what's to come, tomorrow will be what is expected to be the largest demonstration, some 250,000 people expected to show up for an anti-war demonstration, and march across Manhattan. In fact, they'll march right past Madison Square Garden where the Republican National Convention will be held on Monday. In expectation of this, police have set up a temporary holding pen on the west side of Manhattan in the event they do have to make large scale arrests but police officials are hoping that that demonstration tomorrow ends up being just as orderly as this demonstration today. However, there is one point to all of this. The group that is holding that demonstration tomorrow had asked for a permit in Central Park to have a rally after the march. That permit was denied although we spoke to a number of people out here today, Fredricka, who tell us they're going to show up at Central Park tomorrow anyway. So we're going to keep our eyes on what may be happening there in Central Park tomorrow. Fredricka, back to you.

WHITFIELD: And is the thinking, Jason, that they feel like they will outnumber authorities and so majority rules despite not having a permit?

CARROLL: You know, we're going to have to wait and see what happens in terms of the number of people that show up at Central Park. It's anyone's guess. The organization that's putting together this large scale demonstration for tomorrow at one point during a press conference asked everyone to make sure that they follow what police are saying and not go to Central Park. But then you have a lot of other people who say they're going to end up there anyway. In terms of numbers, we're just going to have to wait and see.

WHITFIELD: Alright. Jason Carroll from New York. Thanks so much.

Well, thousands of supporters greeted the President in Ohio today. President Bush is on his third bus tour of that key state. He's made stops in towns like Troy and Lima and right now the bus is apparently in Columbus Grove and that's where we find our CNN White House correspondent Suzanne Malveaux traveling with Mr. Bush and she joins us on the telephone. Suzanne?

SUZANNE MALVEAUX, CNN CORRESPONDENT: We are heading to Fort Meigs State Memorial, it's in Perrysburg, which is a suburb of Toledo. This is our third and final stop. This is considered really the I-75 corridor, the backbone of Republican strong-hold of Ohio. And you know Ohio is such an important state for the President, this is our third bus trip so far, to the Buckeye State. The President calls these trips fertilizing the grassroots. That is basically getting out there and rallying the loyalists, the big supporters and try to get them to go out door-to-door campaigning, trying to convince some of those swing voters, those undecided votes. One of the things the President has really been focusing on here is the economy. Because, as you know, in Ohio, an incredible number of people have lost their jobs over the last three and a half years. But we are seeing unemployment dip down a little bit and there is some economic growth, and that is what the President has been stressing today.

WHITFIELD: And Suzanne, you mentioned earlier the President will be making a return to that very important battleground state of Ohio. Why? MALVEAUX: Well, it is because it is critical. It carries 20 electoral votes. But this is a place where the President won by just 4 percent back in 2000 and also this is also a place where the polls are showing the President is in the lead, a slight lead, 49 percent for Bush to 44 percent for Kerry. One of the things they're trying to do in terms of strategy, is not only emphasize policy but also the President's personality, to put him out there. We saw at a stop called the Spot, where he bought a hamburger, whipped out a $20 bill, bought a hamburger, shook some hands, Bush aides and campaigners really say this is the strong suit of the President, putting him out there before the people and allowing those loyalists to go out there and essentially campaign for him.

WHITFIELD: Suzanne Malveaux traveling with the President, now in Ohio, soon to make his way to New York and then back to Ohio by next weekend.

The Democratic nominee is more than 2,000 miles away from President Bush. Senator John Kerry is courting voters in Washington State. Kerry held a rally at the Tacomadome today and yesterday, he spoke to voters in Everett. The latest state polls show Kerry/Edwards ahead of the Bush/Cheney campaign. Republicans held their own rally in Tacoma. They had a waffle feed(ph) to highlight their belief that Kerry flip-flops on the issues.

Evidence has surfaced of a possible spy operating inside the Pentagon. We'll have the latest on the investigation in a live report on Washington, and then a bit later, we'll introduce you to one gold medalist who you probably haven't heard of. He's 75 years old and a 12-time Olympian.

And at 4:30, the who, what, when, where and why of real estate investing. Just email your questions to DOLLARSIGNS@CNN.COM or you can call us at 1-800-807-2620. We'll be right back.

(COMMERCIAL BREAK)

WHITFIELD: Washington is buzzing today over a possible espionage case involving America's closest ally in the Middle East. The FBI is investigating whether a Pentagon analyst sneaked secret material to Israel. Here's CNN's Kathleen Koch.

(BEGIN VIDEOTAPE)

KATHLEEN KOCH, CNN CORRESPONDENT (voice-over): Headed to a campaign swing through Ohio, President Bush did not respond to questions about reports of an espionage investigation at the Pentagon. His spokesman, Scott McClellan only saying, "Any time there is an allegation of this nature, it is a serious matter." Senior U.S. officials say an FBI investigation lasting many months has found evidence an employee working in the Pentagon may have passed classified information to Israel. While one official contends he may have been in a position to influence Bush administration policy towards Iran and Iraq. Another claims an analyst in an undersecretary's office is, quote, "not in a level to influence policy." The Pentagon in a statement said, "DoD has been cooperating with the Department of Justice on this matter for an extended period of time. It is the DoD's understanding that the investigation within the DoD is limited in its scope." Israel is refuting the charges, citing the case of convicted spy Jonathan Pollard.

UNIDENTIFIED MALE: Since the Pollard case 20 years ago, there was clear and final decision not to spy against the United States government or in the United States, and therefore I am 100 percent confident that there is no Israeli involvement in this case.

KOCH: The analyst allegedly passed classified documents to Israel through a pro-Israeli lobbying group, the American Israel Public Affairs Committee. AIPAC calls this, quote, "false and baseless" and says it is cooperating with the government.

(END VIDEO TAPE)

(ON CAMERA) At this position, no charges have yet been filed and government officials say that, indeed, there not only has been no decision made to prosecute anyone but it's possible no charges at all may be filed. And they say it's also possible that if charges are filed they may not be espionage charges. Fredricka?

WHTIFIELD: So then the investigation is still ongoing, what would the next step be if possibly no charges?

KOCH: Well, Fredricka, this is a very complex case. And there were really a lot of unanswered questions here, which is perhaps why we're hearing they may not go forward with any charges at all. According to Washington insiders, it's really not unusual for governments who are friendly to the United States to have access to certain classified U.S. information. So if indeed this is correct, if these parties did exchange information, they may not have been aware that they were committing any form of espionage. And if indeed the information that was passed on was simply confidential information than that may not have been even a violation of U.S. law.

WHITFIELD: And from the White House, what's the belief of the kind of impact this might have on the Bush administration?

KOCH: Well, we have been asking the White House that today, but really, no response. Spokesman Scott McClellan simply saying that this is not the time to comment on an ongoing investigation.

WHITFIELD: All right. Kathleen Koch from the White House. Thanks so much.

U.S. Secretary of State Colin Powell will not attend the Summer Games closing ceremonies on Sunday. The decision came hours after anti-Iraq war protesters marched in central Athens. CNN's Michael Holmes has the story of one man, however, who will not miss the closing ceremonies. In fact, he hasn't missed an Olympics in more than 40 years

(BEGIN VIDEOTAPE)

MICHAEL HOLMES, CNN CORRESPONDENT (voice-over): Coming home from another Olympic photo shoot, Andreas Kalogeropoulos in his cluttered office, a lifetime of sport on film.

ANDREAS KALOGEROPOULOS, OLYMPIC PHOTOGRAPHER (through translator): After every Olympics, my mind is with the next Olympics. Every night I'm thinking about the next one. I dream about it.

HOLMES: Andreas has covered every Olympic since Rome, 1960. 12 Olympiads. Not even heart surgery could stop him.

KALOGEROPOULOS: When I went to Atlanta in '96 I had been out of the hospital 12 days after having my fifth heart bypass. I escaped from the hospital and went to Atlanta.

HOLMES: And here in Athens he stands alone among photographers.

KALOGEROPOULOS: There was one photographer, a German guy who said, "Haven't you stopped yet? I want to catch up with you." And I said, "There's no way you'll get there."

HOLMES: Ask him for a photo, from, say, Mexico, 1968, and it will be here somewhere.

How much has photography changed between Rome and Athens?

KALOGEROPOULOS: The difference between night and day.

HOLMES: No zoom lenses, digital photography or motor drives then, just this trusty RolleFlex. Other treasures are here too. An Olympic gold medal. Yes, a real one. Awarded to him by the IOC for his tenth Olympics, in Atlanta. Another award from Greek Olympic medalists for a lifetime of service. There are so many memories, the worst, he says, covering the slaying of Israeli athletes in Munich in 1972, the best, the Olympics coming home to Greece. But after these games, there will be just memories. Andreas Kalogeropoulos is hanging up his camera.

KALOGEROPOULOS: I'm very upset. But I'm 75 now and have had five heart bypasses and I have to stop. I should have stopped after Sidney but I couldn't miss these Games.

HOLMES: But you get the feeling it won't be much of a surprise if the name Kalogeropoulos shows up on a photograph with the dateline Beijing, 2008. Michael Holmes, CNN, Athens.

(END VIDEO TAPE)

WHITFIELD: Well, the risk of losing your home due to a foreclosure could be slightly higher depending on where you live. Up next, find out which states are most effected.

And coming up in about 10 minutes, if you're on the other end of the spectrum and you're thinking about getting into real estate as an investment, well here is your chance. Email your questions to dollarsigns@cnn.com or you can call us at 1-800-807-2620, and we'll be right back.

(COMMERCIAL BREAK) WHITFIELD: Well, DOLLARSIGNS is about to begin. Don't forget to email your questions to dollarsigns@cnn.com or call us at 1-800-807- 2620.

As we heard earlier, President Bush is talking about the economy and in the battleground state of Ohio today. And right next store in Indiana, financial worries are a big concern. The state has the dubious distinction of leading the nation in foreclosure rates. Our Ceci Rodgers looks at that problem.

(BEGIN VIDEOTAPE)

CECI RODGERS (PH), CNN CORRESPONDENT (voice-over): Detective Tracy Harbin is delivering notices of foreclosure in Merrillville, Indiana. She's already posted 20 and has 15 more to go.

TRACY HARBIN, DETECTIVE: When we arrive at someone's house and we're talking about mortgage foreclosure, you're taking away their home, their property and a person's home is basically their palace. You never know what they've had to go through, so you always have to be just mindful of that.

RODGERS: Harbin is telling this homeowner he could lose his house at a sheriff's auction in October.

UNIDENTIFIED MALE: Is there no other way to avoid that at this point?

RODGERS: Vince Mattioli lost two jobs in the space of two years as a salesman for steel mills and other industrial companies in the area.

VINCE MATTIOLI: We're praying for miracles, several miracles, for a new job, for a miracle for the house, that we're able to keep the house.

RODGERS: It's a common story in Indiana which has the United State's highest foreclosure rate. Contrast that with California and Nevada, states with low foreclosure rates.

(on camera) Nationwide, foreclosure rates are highest in areas that have lost a significant number of manufacturing jobs, such as Michigan, Ohio and here in Indiana.

(voice-over) In some parts of the state, foreclosures have reached crisis proportions. In Lake County, Indiana, there have been nearly 1300 foreclosures so far this year, on a pace to break last year's record.

DOUG DUNCAN, MORTGAGE BANKERS ASSN.: The most important factor in foreclosures is always employment and the structural trends that we've seen affecting states with a high manufacturing component has been the biggest factor in their employment.

RODGERS: Foreclosure rates have stabilized nationwide but some question whether that will continue because more than half the nation's mortgages are new, written in the past three years as homeowners rushed to refinance at low interest rates.

JAY NEVELOFF, KRAMER LEVIN: They were also taking extra money out of their home so they had money to pay for education, to buy things, to fix up the house or buy a new car.

RODGERS: In other words, it isn't yet clear whether homeowners took on too much debt that could come back to haunt them. C. C. Rogers for CNN Financial News, Merrillville, Indiana.

(END VIDEO TAPE)

WHITFIELD: Well, not everyone is having problems in this economy, so on DOLLARSIGNS, another way of watching your money grow, we're talking specifically about real estate investing. And guess what? In some cases, all you need is $1,000. Is it a good idea for everyone? And what about that beachfront property you've had your eyes on as a second home? To invest or not to invest? Call us in about five minutes at 1-800-807-2620 or send us your email to dollarsigns@cnn.com. We'll be right back.

(COMMERCIAL BREAK)

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