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Lou Dobbs Tonight
Trapped Miners, Crackdown on Illegal Aliens, Illegal Alien Charged with Killing 3 College Students, Turmoil in Home Loan Market
Aired August 10, 2007 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
FRANK SESNO: We do work hard, don't we?
MILES O'BRIEN, CNN CORRESPONDENT: All right. Let's give it a swirl. Frank Sesno, thanks.
LOU DOBBS TONIGHT starts right now. Here's Kitty Pilgrim.
KITTY PILGRIM, CNN CORRESPONDENT: Thanks Miles. Tonight the White House declares it will reinforce our existing immigration laws. Now is the administration playing politics to win over the Republican debate?
Also, businesses that obey the law are fed up with companies that hire illegal aliens. They're worried the government's so called crack down will be another empty promise.
And three college students gunned down in an execution style murder in Newark, New Jersey. One of those charged with the murders is an illegal alien who is living in one of our sanctuary cities.
All of that and the day's news, much more straight ahead tonight.
ANNOUNCER: This is LOU DOBBS TONIGHT, news debate and opinion for Friday, August 10. Live from New York, sitting in for Lou Dobbs, Kitty Pilgrim.
PILGRIM: Good evening, everybody. Rescue workers in Utah tonight are drilling a second hole 1,900 feet deep to reach a group of trapped coal miners. Six miners have been trapped underground since Monday. A first hole may have been off target and ended up in the wrong chamber.
Ted Rollins is in Huntington, Utah, and he joins me with the latest.
Ted.
TED ROLLINS, CNN CORRESPONDENT: Kitty, first news was heart breaking that the hole had been drilled, a microphone had gone down and there was no signs of life. But now there's a silver ling to that, because oxygen samples from the cavity that they did drill into were so low, that they would not be able to sustain human life. So relatives are hoping that indeed it was the wrong chamber and then when the larger drill gets in some time late tonight, early tomorrow, they will be in the right spot and get good news out of this. This has been a roller coaster ride for them starting on Monday when the six miners are trapped. It is Friday. They are tired, weary and very, very worried about their loved ones. The drilling continues. They are also continuing to move through the mine to get to the miners themselves. If the miners are alive, it will take a few days, up to a week possibly, to go in and get them. It all depends on the level of rock that they encounter and whether or not they have any more disturbances.
The drill that they are waiting on right now is progressing fine, according to mine officials. That could change. They may slow down. But at this point relatives are hoping for word on the fate of their loved ones some time tonight, maybe into the early morning hours tomorrow.
Kitty.
PILGRIM: Ted, are they bringing in more sensitive monitoring equipment?
ROLLINS: They are bringing in larger equipment, which is more sensitive and the camera that they will be able to put down, this 8 5/8 of an inch hole will give them the be ability once it's in there to look around and see for an extended distance. They will be able to tell definitively if they are in the right spot, which they say they can direct. It's a directional drill. They will be able to put it where they want it, get the large camera in and have some real answers for these family members that have been waiting so patiently and going through this horrific nightmare.
PILGRIM: A horrific nightmare, as you say. Thank you very much, Ted Rollins.
Well, three construction workers were killed at an Indiana coal mine today. The accident happened during the construction of an air shaft at Princeton, Indiana. There was no cave-in or collapse. Mine officials said no one else was believed to be injured or trapped.
Now divers searching the Mississippi River in Minneapolis recovered more human remains today. The divers are continuing their search for victims of the August 1 collapse of the I-35 Bridge. At least nine people are dead, several people still missing. Congress has approved $250 million in aid to help Minnesota recover from the loss of that bridge.
In Washington today, the Bush Administration announced what it says is a new crackdown on companies that hire illegal aliens. Officials and employers who ignore our immigration laws will face heavy fines. Some republicans, however, believe the plan is a blatant attempt to win over critics of President Bush's amnesty agenda.
Lisa Sylvester reports from Washington.
LISA SYLVESTER, CNN CORRESPONDENT: Two cabinet secretaries made the announcement, a new get-tough strategy on illegal immigration. MICHAEL CHERTOFF, HOMELAND SECURITY SECRETARY: The magnet that brings more economic migrants into this country is work. If we have work site enforcement directed at illegal employment, we strike at that magnet.
SYLVESTER: The proposal calls for more border agents, adds new fencing, promotes an employment verification system, and requires company fire any workers caught using phony social security numbers. The administration's announcement comes after the collapse of the White House-backed come comprehensive immigration plan in the Senate. Immigration reformists were cautiously optimistic.
REP. BRIAN BILBRAY (R), CALIFORNIA: I think we are finally hearing an echo of what the American people were saying last month. While Washington was talking about amnesty, the American people were saying, how about enforcing the law?
SYLVESTER: But some critics questioned whether the administration is in fear about its illegal immigration crackdown or trying to lay the ground work for north attempt at a guest worker amnesty bill. Senator Chuck Grassley wants more than a just press conference and words on a piece of paper.
JIM EDWARDS, IMMIGRATION CONSULTANT: We are 6 1/2 years into this administration and they are finally waking up and saying we are going to enforce the laws on the books. It's a little tough on credulity to buy.
SYLVESTER: Commerce Secretary Carlos Gutierrez acknowledged the administration has not given up hope for a guest worker program and legalization of illegal aliens.
CARLOS GUTIERREZ, COMMERCE SECRETARY: It is clear there are jobs Americans are not willing to do or Americans are not available to do, and we need to acknowledge this reality.
SYLVESTER: Business groups worry that the new regulations will cripple certain industries.
RANDY JOHNSON, U.S. CHAMBER OF COMMERCE: I think it will have a suggest effect on a select number of employers in certain industries such as construction, roofing, agriculture, hotel, motels.
SYLVESTER: The new rules do not require congressional approval. The requirements for employers to verify social security numbers will be effective in 30 days.
Skeptics say they are not buying the administration's plan just yet for several reasons. There's no additional money set side to implement these plans. Not all employers in the United States will be required to use the employment verification system. Only those who want to do business with the federal government. And unless more immigration enforcement agents checking to make sure companies are complying with the new rules, it will be more of the same.
Kitty. PILGRIM: Unbelievable. Thanks very much, Lisa Sylvester.
Well as Lisa just reported, President Bush said he's determined to build on the progress already made towards so-called comprehensive immigration reform. Many republicans believe the president is planning to reintroduce his amnesty agenda.
Now Elaine Quijano reports from near the president's home in Kennebunkport, Maine.
Elaine.
ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Hello to you, Kitty.
The president spent some time out on the boat with his father, the former President Bush as well as his brother, Jeb, but this is a working vacation and the president today was clearly trying to send the message that the administration is serious about enforcing existing immigration laws. The message to conservatives, essentially, as the president wants to try and restore credibility that it understands the concerns about the border.
At the same time the Bush Administration was also clearly trying to send a message and put the onus on the democratically led Congress on the issue of immigration reform. As administration officials say even though President Bush was not successful in pushing through comprehensive legislation, there's still an obligation, they say, to address the issue.
The question some critics are asking, why did the Bush Administration not take these actions sooner? White House Deputy Press Secretary Dana Perino said the president held off while Congress was looking at possibly passing that comprehensive immigration legislation. Now, of course, with the measure defeated, Perino said they are going as far as they possibly can without Congress acting.
Kitty.
PILGRIM: Thank you very much, Elaine Quijano. An obligation to address the issue probably sums it up very well.
Tonight there is more evidence that this country's failed immigration policy is allowing dangerous criminals into this country. An illegal alien out on bail for previous violent crimes is charged in the execution style killing of three college students in one of this country sanctuary cities. Allen Chernoff is in Newark, New Jersey with more.
Allan.
ALLAN CHERNOFF, CNN CORRESPONDENT: Good evening Kitty.
A 28-year-old illegal immigrant from Peru, Jose Carranza, was charged and today pled not guilty to murder in the triple homicide of three college students here in Newark. After that case it was revealed to the public indeed Mr. Carranza has already been facing other criminal cases. In fact, these indictments are absolutely chilling. They detail the fact that according to the prosecution, he is charged with raping repeatedly a young girl, four, five and six years of age, when she was that young, and he did plead not guilty in that case and in fact he met bail on that case and another case where he is charged with assaulting four men with a bottle and chair. Total bail of $200,000. But it was only when this case actually came that authorities recognized Carranza was in the country illegally.
TOM MCTIDE, LEAD ASST. PROSECUTOR: We determined that this person was an undocumented alien as we were conducting the homicide investigation. We are going to leave it at that. The procedure is complex. Notifying the federal authorities.
CHERNOFF: The way it works here in New Jersey in terms of notifying the authorities, they are notified only after a person is convicted. Carranza has not been convicted.
We have a statement from the immigration and customs enforcement. "The Ice Law Enforcement Support Center was not contacted regarding prior arrests. We were notified yesterday and we immediately placed an immigration detainer on him."
There is a second person charged in this triple homicide, a 15- year-old Latino. He is in the country legally, we understand. Funerals for the three dead victims will be held tomorrow.
Kitty.
PILGRIM: Allan, a question, why would a judge allow an illegal alien, who is an obvious flight risk, to post bond? That's really the question here.
CHERNOFF: What authorities are saying here is that they believe Carranza was not a flight risk. He actually did appear at all of his court hearings. He did post the bail. Apparently he worked as a construction worker, had a fair amount of money. They say he wasn't a flight risk.
PILGRIM: Unbelievable. Allan Chernoff, thanks very much, Allan.
Well, Allan will join us with an update on this horrifying case. Jose Carranza is just one of hundreds of thousands of criminal illegal aliens living in this country. According to the Immigration and Custom Enforcement, there are currently 600,000 fugitive aliens and these are foreign nationals that have failed to appear for immigration hearings or have ignored orders to leave the country. Now of those fugitive aliens, 100,000 to 120,000 are also criminal aliens, like Jose Carranza. These criminal aliens have been convicted of local, state or federal crimes.
Still ahead, skepticism in Congress about the Bush Administration's so-called crackdown on illegal immigration.
Also a critical test of republican presidential candidates takes place in Iowa this weekend. We will bring you the latest on that.
And new fears, the housing crisis could turn into a recession that will devastate middle class American families.
(COMMERCIAL BREAK)
PILGRIM: Leading democrats tonight are blasting the Bush Administration for its so-called crackdown on illegal immigration. Those democrats and other pro-amnesty supporters say only comprehensive immigration reform will solve our illegal immigration crisis.
Jessica Yellin reports from Capitol Hill.
JESSICA YELLIN, CNN CORRESPONDENT: Congressional democrats are slamming the president's plan for stepped-up enforcement. Senator Ted Kennedy says it will do little to enhance our security and will hurt millions of immigrant families. Senator Dianne Feinstein dismisses it as a band-aid.
Democrats are especially concerned the new rules will force business owners to fire workers, whose legal status they can't verify. Senator Dianne Feinstein warns American farmers could lose 70 percent of their labor force just as fall harvest begins. But republicans have long said any immigration reform begins with enforcement of existing laws. And with this announcement, it would seem the administration is listening.
CHERTOFF: Until the laws change, we are enforcing the laws as they are to the utmost of our ability using every tool we have in the toolbox.
YELLIN: Many in the president's party are applauding the get tough policy. But republican critics the president's comprehensive immigration reform plans worry today's announcement is just the beginning of a new White House push for a guest worker program.
REP. TOM TANCREDO (R) PRESIDENTIAL CANDIDATE: This is just a prelude because they are absolutely obsessed with amnesty for the people here illegally and opening the gates to the rest.
YELLIN: One analyst says Congress and the American public are so divided on this issue, action is unlikely.
STU ROTHENBERG, THE ROTHENBERG POLITICAL REPORT: There are simply is not a consensus on Capitol Hill for an immigration bill. The president said he would like one. If you ask legislators from both parties, they all would like one. The problem is, they all want different bills. There's nothing that can get through.
YELLIN: After immigration reforms failed in June, congressional leaders declared the issue all but dead and there's slim to no chance it will come up again this year.
Kitty.
PILGRIM: Thanks very much, Jessica Yellin. Thanks, Jessica.
Well, republican presidential candidates face a critical test in Iowa this weekend. An informal straw pole in Aims, Iowa, could force some candidates to reconsider their ambitions. Some have been winning support at the Iowa state fair in Des Moines.
And Bill Schneider is there and reports from Des Moines.
BILL SCHNEIDER, CNN CORRESPONDENT: It may look like a circus but it's really a big-time political event. Look at all of the republicans at the Iowa state fair. Mike Huckabee, Sam Brownback, Tom Tancredo, Tommy Thompson, hey, there's Newt Gingrich. What about the national front runners? Rudy Giuliani is leading the republican field in our new national poll, followed by undeclared candidate Fred Thompson and then John McCain. None of those three nationally top- ranked republicans is participating in Saturday's straw pole, which leaves Mitt Romney, the number four national contender, as the favorite. In fact, Romney is leading in Iowa republican caucus goers. He's expected to win the straw pole. The question is, how big?
MITT ROMNEY (R) PRESIDENTIAL CANDIDATE: That's why we are here, to get more support. It would be a real challenge. We all hope to do well and I home that hopes to do well.
SCHNEIDER: Will it be a big enough win to give Romney a big story and boost in the national polls? Or will he stumble? There's a hot contest for second place in the straw poll. The top contenders, Tommy Thompson, Sam Brownback and Mike Huckabee.
MIKE HUCKABEE (R) PRESIDENTIAL CANDIDATE: I hope we will see you tomorrow in Aims. We could use your help.
SCHNEIDER: A poor showing in the straw poll could lead one or two of them to reconsider their campaign.
DENNIS GOLDFORD, DRAKE UNIVERSITY: The question is how much will the straw poll thin the herd? In 1999, it knocked out Lamar Alexander, Dan Quayle and Elizabeth Dole because they can't do well enough to keep their campaign donations flowing.
SCHNEIDER: And then there's the possibility of a surprise. Ron Paul has a fervent following on the internet. Tom Tancredo has a hot issue, immigration. It's estimated that close to 40 percent of the Iowa republicans are social conservatives.
GOLDFORD: This is where Pat Robertson made his breakout and showed up on the radar screen a long time ago.
SCHNEIDER: Some conservative evangelicals have not been entirely comfortable with Mitt Romney because he's changed position on some social issues and because of his Mormon faith. A strong finish here in Iowa could help resolve some of their concerns.
Kitty.
PILGRIM: It's getting interesting. Thanks very much, Bill Schneider. Thanks Bill.
Time for some of your thoughts now. Carl in Nevada wrote to us, "To hold a presidential debate in Spanish is idiotic. You need to know English to be able to be a citizen and you need to be a citizen to vote, that is if the law is being enforced, oh, I forgot. It's the Bush reign."
And Elizabeth in New York wrote to us, "Bush keeps talking about beefing up our border security so why doesn't he do it? If he really wanted to, he could have done it years ago. It's that simple."
And Sandra in Florida, "I've decided your show is not long enough to cover all of the ridiculous things going on in our government. Will there be enough in the day to cover all the lunacy? Thanks for all you manage to do in one hour." I am sure that Lou would thank you.
We have more of your emails later in the broadcast and we will bring them to you.
And just ahead, the escalating housing crisis in the country its devastating impact on middle class Americans.
We'll have more on the execution style slaying of three college students also in Newark, New Jersey. The man charged is an illegal alien living in one of our sanctuary cities.
Stay with us.
(COMMERCIAL BREAK)
PILGRIM: Credit concerns in this country sent world financial markets on wild ride today. The Dow industrials and NASDAQ ended slightly lower, recovering from steep losses earlier in the day. As Christine Romans reports, some analysts believe the markets and the economy are still very vulnerable to these sub prime mortgage mess.
CHRISTINE ROMANS, CNN CORRESPONDENT: For banks, companies and the middle class, the crisis in the mortgage market means a credit crunch.
JOSH DIVENS, ECONOMIC POLITY INSTITUTE: That will affect people who opportunity buy a house, who want to buy a car, who want to buy an appliance on credit.
ROMANS: Worst, the economist said, a major driver of the economy just disappeared. Homeowners' ability to tap and spend their home equity.
DIVENS: I think that radically increases the possible of the a real economic down turn or recession.
ROMANS: There are indeed a few calls for recession. Others say the turmoil is temporary.
LAWRENCE YUN, NATIONAL ASSOCIATION OF REALTORS: It is a market over reaction. Right now Wall Street and the investors are just staying way from all mortgage markets. As a result, it is more difficult to borrow money, even for prime borrowers.
ROMANS: As the world markets reel, the president described the U.S. economy as thriving. And central banks in Europe and the United States pumped hundreds of billions of dollars into the banking system to keep credit markets working. Already first-time buyers and families seeking to move into larger homes are having trouble securing loans.
BRAD INMAN, INMAN NEWS: We now have a first-time buyer and move- up market that's in trouble, which means more chaos in the housing market, which means following prices, which means it's harder to get loans. It's really rolling thunder and quite scary.
ROMANS: Especially scary for the half million owners at least 60 days late in their mortgage payment and for hundreds of thousands with adjustable rate mortgages. Their mortgage payments are skyrocketing while their home values are falling. A disastrous combination.
Even refinancing those adjustable loans today has become more difficult as banks have tightened their lending requirements, Kitty.
PILGRIM: Christine, this cuts right to the heart of Middle America. Your home is a major investment for many, many people in this country. And to have this kind of uncertainty and then have it in the market is a shocking thing. What are the projections on this?
ROMANS: Well, it's so interesting because the projections are all over the board. We talk about housing prices, the National Association of Realtors says maybe a one percent overall price decline this year and prices will start to rise next year. A lot of analysts are saying that's just not realistic.
If you're looking at some of the hot markets, there are estimates up to 30 percent for price depreciation peak to trough for housing pricing. That's really going to hurt. Elsewhere you're seeing eight percent.
There's such a wide range. We just really do not know what to expect right now and that feeds into the uncertainty about all of this.
In terms of those sub prime mortgages that have been packaged and sold, a lot of folks don't even know where those are lurking in portfolios around the world and that's another uncertainty that's making people very, very nervous.
PILGRIM: Thanks very much, Christine Romans.
And coming up, a critical maneuver by the shuttle "Endeavour" and reports of minor damage to the spacecraft. We'll tell you all about that.
Also, employers who obey our immigration laws are furious with companies that hire illegal aliens. We will have the very latest on the illegal alien who lived in a sanctuary city and then allegedly murdered three college students in cold blood.
(COMMERCIAL BREAK)
PILGRIM: As we reported earlier, more evidence that our broken borders are allowing dangerous criminals to enter this country. An illegal alien out on bail for previous crimes in this country is charged in the execution style killing of three college students. The killings happen in one of the nation's sanctuary cities. Allan Chernoff is in New York with the latest developments.
CHERNOFF: That's right, Kitty, he is a 28-year-old illegal immigrant from Peru, Jose Carranza. He was charged and now in court today. He did plead not guilty to the charge of murder as well as attempted murder, robbery and weapons possession. He was facing other criminal charges as well, and these are entirely separate cases.
First of all, we are talking about a case where he assaulted four men with a bottle and a chair and, most shocking of all, he is charged with raping a young girl when she was 4, 5 and 6 years old, over a long period of time. He pled not guilty to both of those charges in both of those cases. He posted bail of $200,000, and he was out free.
Now after this latest charge, the director of New Jersey's homeland security department decided to do some digging.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: He took it upon himself to check his Social Security number and quickly found out it was a bogus Social Security number, and he contacted the folks at ICE, who then basically let us know that they he was -- they had him as an illegal alien.
(END VIDEO CLIP)
CHERNOFF: Immigration and Customs Enforcement told us, quote, "The ICE Law Enforcement Support Center was not contacted regarding prior arrests. We were notified yesterday, and we immediately placed an immigration detainer on him."
Now prosecutor Paula Dow said that she is not going to let this fellow go anywhere this time around. He is in our hands, she said, and we have him, and he's not leaving until this case is adjudicated.
By the way, he does have a hearing on Monday regarding the other criminal cases.
PILGRIM: Allan, what else do we have on this investigation?
CHERNOFF: Well, the investigation has been moving very rapidly, Kitty, indeed. Just this afternoon, a third suspect was being questioned. The police have said that they have three other suspects that they wanted to pick up. Apparently, this one of the three.
They also say that they've been getting plenty of leads. The community has been very, very cooperative here.
And, of course, also very important, the surviving victim, who is in a hospital right now. She was shot in the face. She has been helpful, very much so. She's been able to pick out one of these suspects from an array of photos. So she also has been helping out here.
PILGRIM: Thanks very much, Allan Chernoff. A disturbing story. Thanks, Allan.
New Jersey is home to almost half a million illegal aliens. Unlike other states, New Jersey's legislator and its governor, Jon Corzine, have taken little action on illegal immigration.
Now just this week Governor Corzine announced a commission to investigate the state's growing problems with immigration. The governor is facing sharp criticism for failing to allow local law enforcement to participate in a federal program to help enforce immigration laws.
At least one New Jersey city, Morristown, is applying for that authority on its own.
And that brings us to the subject of tonight's poll: do you believe that states should be required to notify ICE when they have a criminal illegal aliens in their prisons. Yes or no? Cast your vote at LouDobbs.com. We'll bring you the results a little bit later in the broadcast.
Well, the Bush administration today announced a series of new measures that it says will crackdown on illegal immigration. Some critics of that plan say it's a blatant attempt to appease opponents of the president's amnesty agenda.
Lisa Sylvester reports from Washington -- Lisa.
LISA SYLVESTER, CNN CORRESPONDENT: Kitty, 6 1/2 years in office, and the Bush administration is now turning its attention to enforcing existing immigration law.
The proposal calls for more border agents, adds new fencing, promotes an employment verification system and requires companies fire any workers caught using phony Social Security numbers.
So why this new push now? Well, according to Homeland Security Secretary Michael Chertoff, they're trying to regain the trust of the American people on this issue.
The White House backed the failed so-called comprehensive approach in the Senate that included a guest worker program and an amnesty program for as many as 20 million illegal aliens.
But not everyone is buying this new turnaround for the administration. Skeptics say if you take a closer look at this proposal, there's no additional money set aside to actually implement many of these plans -- Kitty. PILGRIM: Thanks very much, Lisa Sylvester.
As Lisa just reported, the Bush administration said it will use existing rules to reduce the number of illegal aliens in the workforce. Companies that hire illegal alien workers will face increased fines and sanctions, and that would be good news for the companies that obey the law when hiring their workers.
As Bill Tucker reports, those companies currently find themselves at a competitive disadvantage.
(BEGIN VIDEOTAPE)
BILL TUCKER, CNN CORRESPONDENT (voice-over): Jerry Funderburk is the owner and operator of this roofing business. He's been doing it for 20 years.
But this year, he says, his business has fallen 90 percent. His frustration intensified when an article ran in "The State" newspaper on June 27 in Columbia, South Carolina, in which a roofing competitor admitted to hiring illegal aliens.
Less than a month later, Funderburk staged a one-man protest on the street outside this home where he alleges his competitor hired illegal aliens to do a job for less than half of what he bid.
TERRY FUNDERBURK, CUSTOM COPPER: I can't compete with people that make $10, $12 less of what I pay my people. I mean, I'll be out of business the next couple of months because of it.
TUCKER: He was handcuffed and ticketed for disorderly conduct, and his son captured these images from across the street.
Twenty-two hours later, Funderburk was released from jail. No action was ever taken against the competitor. Funderburk feels abandoned by the political system.
FUNDERBURK: They don't care. They don't care about me. I look at myself in the eyes of the politicians and the local leaders is like a second class American citizen.
TUCKER: Funderburk said that out of the past four years, he's only worked two. And that means the guys who worked for him haven't worked either. Matt Reindl understands exactly what Funderburk is going through.
Reindl owns a small cabinetry business in Long Island, New York. He's twice testified before congressional committees, asking how he can be expected to compete with businesses hiring illegal aliens.
MATTHEW REINDL, STYLCRAFT INTERIORS: Some of my competition will hire people illegally, not pay worker's comp, not pay Social Security, not pay the health benefits. And it has driven the price of my products down considerably, where now I have to make a decision whether I can continue to pay health benefits for my legal people that are here. TUCKER: Examples that suggest working standards are not being raised but steadily eroded.
(END VIDEOTAPE)
TUCKER: Now, there are estimates companies who hired illegal aliens and don't pay various insurances and don't provide health care enjoy a 29 percent advantage over him out of the gate. And Kitty, that does not include the wage differential between a legal worker and illegal worker.
PILGRIM: Well, it hardly seems fair. But you know, Bill, enforcing these laws will really help American workers, won't it?
TUCKER: Yes. And that is getting lost in all of the rhetoric today. Everybody is talking about how it's going to cripple businesses. The fact is -- and I find this statistic revealing, from 2000 to 2006, the Labor Department data shows real wages for roofers fell 6 1/2 percent at a time when the building boom was at its peak.
That doesn't suggest that we've got a problem or a tightage (ph) or short labor supply. It suggests that what is happening is these contractors are able to take advantage of illegal labor and gain an illegal advantage over competitors.
PILGRIM: No one playing by the rule wins.
TUCKER: Exactly.
PILGRIM: Thanks very much, Bill Tucker. Thanks, Bill.
Well, a passenger shuttle service in Arizona has been indicted for smuggling drugs and human trafficking and profits to Mexico. Arizona's attorney general said that the shuttle firm moved about $2 million a month in dirty money for at least 20 different smuggling operations.
Forty-seven people were indicted, almost $1.5 million received.
Mexican President Felipe Calderon is criticizing the U.S. Congress for failing to pass immigration reform. Now, according to the Associated Press, Calderon called members of Congress "insensitive" in a speech on Thursday.
Calderon added, "The U.S. Congress, which today turned its back on reality, knows full well that the American economy could not move forward without the labor of Mexicans."
Just ahead: a war of words on the campaign trail. John Edwards calls one of Rudy Giuliani's comments a break from reality. Giuliani, of course, hits back. We'll have the details next.
And then the Endeavour docks at the International Space Station. There may be a minor problem with the shuttle. All of the details when we return. Stay with us.
(COMMERCIAL BREAK)
PILGRIM: Insurgents in Iraq killed another one of our troops. The soldier died of wounds he received in a roadside bomb attack in Baghdad. Twenty-five of our troops have been killed so far this month; 3,683 of our troops have been killed since the war began; 27,279 of our troops wounded, 12,267 of them seriously.
A senior U.S. officer in Baghdad today said he believes the anti- American cleric Muqtada al-Sadr is hiding in Iran. Al-Sadr controls a large militia that is blamed for an increasing number of attacks against our troops. Now, officials believe the militia is receiving weapons and training from Iran's Revolutionary Guard.
Joining me now from Washington to discuss this and the day's events, Diana West of the "Washington Times"; Michael Goodwin, Pulitzer Prize-winning columnist for "The New York Daily News"; and in Long Island, Democratic National Committeeman Robert Zimmerman. And thank you all for joining us.
You know, I have to start with the Newark case, this illegal alien now involved in the shooting of the college students. And going through the facts of this, you are horrified with the list of indictments that is against this man.
Let me start at the far end of our panel. Robert Zimmerman, can you give us your comments on this? Is this not the most outrageous thing you've heard in a long time?
ROBERT ZIMMERMAN, DEMOCRATIC NATIONAL COMMITTEE: It is just stunning, and the very fact that the judge awarded this individual bail, and felt this individual would not be a flight risk, is just chilling.
And I think it sends an important wake-up call to everyone, both in the law enforcement community and all of us who are concerned and focusing on securing our borders and ports that the idea that there has to be a reawakening, a serious addressing of the issue about making sure that we address the issue of illegal immigration and also the very issue of making sure that the laws are properly enforced and that our judicial system wakes up to reality here.
PILGRIM: We've seen a lot of basically talk about immigration this week of the Bush administration announcing plans to enforce existing laws. Secretary of Homeland Security Michael Chernoff and Secretary of Commerce Carlos Gutierrez discussed the proposal on Friday. A lot of talk, and yet you still have these horrific situations.
DIANA WEST, "WASHINGTON TIMES": Kitty, it's disgusting and it's frustrating. And it's as if -- it's as if the administration doubts our own mental aptitudes out here. I mean, this is really getting outrageous.
There was another case on the West Coast this week of a similar situation with illegal aliens involved in the murder of a 15-year-old girl. This is girl breaking out of Oregon this week. You know, you just wonder, what does it take? And I don't know. I think we need more phone calls to the Capitol and the White House.
PILGRIM: I think the American public is probably at the end of their rope over this endless discussion and no enforcement. Let's take a listen to Secretary Chertoff's comments he made today. He was describing an enforcement plan.
(BEGIN VIDEO CLIP)
MICHAEL CHERTOFF, SECRETARY OF HOMELAND SECURITY: We had hoped that immigration reform, on a comprehensive basis, would give us a much wider set of tools. We don't have that. We still think Congress can act on it.
But until the laws change, we are enforcing the laws as they are to the utmost of our ability, using every tool that we have in the toolbox. And we will sharpen some of those tools.
(END VIDEO CLIP)
PILGRIM: It's about time.
MICHAEL GOODWIN, PULITZER PRIZE-WINNING COLUMNIST: Well, it's interesting. Because obviously, these laws have been on the books and not enforced up until now.
And I think that is one of the arguments that I made and others certainly made, that Congress didn't need a new law. That most of the problem could be solved by enforcing the laws already on the book.
So if they're going to go back and do that. But I do suspect their motives, but I think it's good that they're doing it. But we have to wait and see and make sure they just don't do it for a little while and say, look, now we're done. Let's propose a new bill.
PILGRIM: Bogged down in the political process. Let me just -- Diane, before you hop in there, let me just read a quote from Senator Charles Grassley, who says he appreciates the announcement, but he's not convinced.
And here's what -- he reacted to the White House plans, saying, "The administration can talk until they're blue in the face about proposed reforms to improve our immigration system. I won't be happy until I see action that's more than just a press conference and words on a piece of paper."
I think that fairly well sums up what many Americans are feeling these days -- Diana.
WEST: Yes, I would agree. And I just wonder, will our presidential candidates jump into this? Because it would seem like a marvelous opportunity to make their positions very clear on that. But so far I haven't heard much.
PILGRIM: Yes. Let's go into...
ZIMMERMAN: And Michael Chertoff... PILGRIM: Go ahead. Go ahead, Robert.
ZIMMERMAN: If I may, Michael Chertoff's greatest -- greatest skill in office is that you just can't shame or embarrass the man. It was a year ago that the Congress and the Republican and Democratic votes, had voted to establish a fence along the Mexican-American border. And after all of the press releases were issued, they didn't put any money into that project. This is insane.
GOODWIN: But you know, I have to say Robert in this case, though. I don't think Chertoff is the problem. I think it's the president.
I think the president very clearly has signaled in every possible way that he's not interested in enforcement. And enforcement to him is a necessary -- is an unnecessary evil, something he can avoid, and he has avoided it for 6 1/2 years.
So I wouldn't blame Chertoff. I think that this is George Bush who has decided simply not to enforce the laws.
PILGRIM: Well, hopefully, a case of like this clarity has an up side in that it draws a real strong clue to the American people and to the politicians involved that this is not a light matter.
Let's go on to the political polls. And we have one on President Bush. And he is enjoying the slightest of up-ticks in approval rating. Still at a low, but it's at 36 percent approval versus disapproval at 16 percent. It's up slightly.
What's your reaction to that, Robert?
ZIMMERMAN: Well, you know, the White House is trying to push the fact that Bush has climbed within the margin of error as a significant fact, the fact that his unpopularity is only 60 percent as an achievement, I'll tell you. You need Dramamine to go with that spin.
At the end of the day, this country has had it with this administration's failed and really deceitful policies in terms of how to strategize against the war on terrorism. And certainly, this country wants an alternative to the criminal negligence this administration has shown in fighting the war on terror.
Unfortunately, the Republican congressional leaders and the Republican presidential candidates are staying the course with George Bush.
PILGRIM: Diana?
WEST: I would say that, given the low poll numbers both the Democrats controlling Congress and the White House controlled by the Republicans have enjoyed, that anyone looking at the numbers have to notice the uptick. I think it just reflects the progress of -- the military progress of the surge.
But I think it will be short lived, because we still have a terrible problem with Iran that the administration is not addressing. And we're seeing that, you know, with the cozying up that Maliki is -- Prime Minister Maliki doing with Iran, making a new pipeline agreement just this week.
GOODWIN: I think it's interesting, too, that we now seem to be fighting the Shia militias more than we're fighting al Qaeda or Sunni extremists. So our role seems to have shifted again. The Shia militias now inflicting most of the casualties on our troops.
WEST: Iranians support it.
GOODWIN: Yes, of course. And although maybe there is some sign of progress, I think this could be a temporary situation that sort of lulls us into thinking something. It doesn't feel as though we're making real permanent gains.
PILGRIM: The real test will be in September when the report comes out.
You know, I'd like to just -- we have a little bit of time, Robert. I'd like to hop through a couple of the polls just because they're always interesting. The CNN/Opinion Research Corporation poll, August 6 to 8, registered Democrats.
Here's the lineup: Clinton 44 percent, Obama 24 percent, Edwards 18 percent and Richardson 5 percent -- Richardson showing up -- Edwards at 16. I'm sorry, I misread that.
And then let's take a look at the Republicans for the same period. Giuliani 29, Thompson 22, McCain 18, and Romney 12.
And they had a little skirmish at the end of the day, presidential candidate John Edwards taking on Rudy Giuliani over September 11. Giuliani saying he spent as much time as many of the recovery workers on -- at Ground Zero. And then Edwards saying -- he's taking a break from reality.
And Giuliani, not to let it go, said that the senator thinks the war on terror is a bumper sticker.
And not a great exchange, but this is the level of intensity that we're seeing in this campaign season already. Robert, some thoughts on this?
ZIMMERMAN: Look, Rudy Giuliani simply should just apologize for an egregious misstatement. Our first -- our first responders, our police officers, our firefighters, our volunteers in the city of New York truly were great heroes in the post-9/11 period.
But I think what's happened is, by Rudy Giuliani trying to focus on the aftermath of 9/11, he's trying to avoid addressing what to do in terms of fighting the war on terror. And the reality is he still is nothing more than an echo of the Bush administration policies, and that is not going to be effective or responsive with the American populous.
PILGRIM: Let me let Michael go in here.
GOODWIN: I think one of the things that's interesting is that, for Edwards to go after Giuliani, I think it's another sign that the Democrats view Giuliani as the likely Republican nominee. He's clearly the front runner.
And I think Edwards, trying to boost himself by attacking Giuliani, is designed to get Democratic voters to see Edwards in a different light. Because his campaign is doomed.
PILGRIM: Yes, yes. Diana, last word? We're out of time.
WEST: Well, I think it just shows how important 9/11 will be in the election. They're already skirmishing over it, and there will be more to come.
PILGRIM: And the broader issues surrounding 9/11.
Diana West, Michael Goodwin, Robert Zimmerman, always a pleasure. Thanks for being with us.
A reminder now to vote in tonight's poll: do you believe the state should be required to notify ICE when they have criminal illegal aliens in their prisons? Yes or no? Cast your vote, LouDobbs.com. We'll bring you the results in just a few minutes.
Space shuttle program managers today identified a small area of tile damage on the shuttle's heat shields. The extent of that damage is unclear. NASA will do a more thorough examination on Sunday.
The shuttle docked at the International Space Station after observers on the station photographed the heat shield on the underside of the shuttle. This shuttle is carrying a major structural component and other equipment for the space station.
Just ahead, a Marine who risked his life in Iraq to help rescue comrades trapped in a burning vehicle. The story of Sergeant Mark Camp when we return. Stay with us.
(COMMERCIAL BREAK)
PILGRIM: Now "Heroes", our tribute to the men and women in uniform who serve this country. And tonight we introduce you to Sergeant Mark Camp of the U.S. Marine Corps. His leadership and bravery in Iraq earned him a Silver Star.
(BEGIN VIDEOTAPE)
SGT. MARK CAMP, U.S. MARINE CORPS: Ready, exercise.
PILGRIM (voice-over): As he leads his squad in a physical training session, Sergeant Camp's scars of battle are still healing. In May of 2005, then Lance Corporal Mark Camp was deployed to the Al Anbar province to capture or kill insurgents.
CAMP: We were taking fire the whole time and just, yes, there was a lot of, you know, some far away, some close-up fighting, in the houses, you know, clearing the houses out.
PILGRIM: Camp's squad raided a house. Insurgents inside opened fire, hitting four Marines. Camp, who was outside, heard the gun shots and ran into help. He entered the home three times to rescue wounded squad members. Two Marines were killed.
CAMP: I guess you never really know how you're going to react to someone until it happens. I don't know if it's courage or just not wanting people you're friends with to, you know, get killed.
PILGRIM: Three days later on a patrol to clear an insurgent stronghold, his unit was hit by an IED.
CAMP: We're in Amtrak (ph), and we're driving. And we're heading to go sweep the town. Basically what happened is we got hit by an IED, and it, you know, blew up the vehicle, basically. And so people were killed immediately.
PILGRIM: Seventeen Marines were either killed or wounded.
Camp entered the burning vehicle in an attempt to rescue a comrade. Other Marines pulled them both to safety.
CAMP: My hands and face were literally lit on fire. My hands ended up getting burned worse. I had to have skin grafts on both of my hands and had some, you know, shrapnel removed.
PILGRIM: Recovery was difficult. Sergeant Camp received treatment for the better part of a year.
Recently, he returned to the reserve unit in Ohio to continue his treatment. He now instructs some of the younger Marines and tries it teach them what he learned in Iraq.
CAMP: Just try to make -- you know, make everything good in the end, and I learned some things. And I think, you know, I think I'm definitely a flawed person but a better person than I was going into the Marine Corps.
PILGRIM: For his bold leadership, wise judgment and complete dedication to duty, Sergeant Mark Camp was awarded a Silver Star.
(END VIDEOTAPE)
PILGRIM: Sergeant Camp is in the process of being cleared to return to duty. He has two more years of service left in the Marines. And he also hopes to return to college and earn a degree in history. What a remarkable young man. We do wish him luck.
And still ahead, the result of tonight's poll. More of your thoughts. Stay with us.
(COMMERCIAL BREAK)
PILGRIM: Here are the results of tonight's poll. Ninety-eight percent of you believe states should be required to notify ICE when they have criminal illegal aliens in their prisons.
Time now for some of your thoughts.
James in Texas wrote, "Yesterday, I bought a bag of potatoes at the store. The bag was marked U.S. No. 1 product of the USA. It sure was nice knowing it was an American product and at the same time I was helping the American farmer."
Roger in Indiana: "Lou, thanks for trying to express our mistrust of government concerning border security and illegal immigration. But they just don't get it. They tried to ram 'comprehensive reform' down our throats unsuccessfully and now they are trying appeasement. We don't buy it."
Bob in New York: "Lou, every time I listen to your reporting on illegal immigration. I can't believe what I'm hearing. The corruption -- corrupting influence of business, government and law enforcement is truly beyond anything my cynicism ever imagined."
Finally, Barbara in California writes to Lou, "I must tell you that you are like a breath of fresh air for the citizens of this country. Thank you for fighting for the rights of the people."
Thanks for being with us tonight. Please join us tomorrow. For all of us here, good-night from New York.
"THE SITUATION ROOM" starts right now with Miles O'Brien -- Miles.
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FRANK SEZNO (ph): We do work hard, don't we?
MILES O'BRIEN, CNN CORRESPONDENT: All right. Let's give it a swirl. Frank Sezno (ph), thanks.
LOU DOBBS TONIGHT starts right now. Here's Kitty Pilgrim.
KITTY PILGRIM, CNN CORRESPONDENT: Thanks Miles. Tonight the White House declares it will reinforce our existing immigration laws. Now is the administration playing politics to win over the republican debate.
Also, businesses that obey the law are fed up with companies that hire illegal aliens. They're worried the government's so called crack down will be another empty promise.
And three college students gunned down in an execution style murder in Newark, New Jersey. One of those charged with the murders is an illegal alien who is living in one of our sanctuary cities.
All of that and the day's news, much more straight ahead tonight.
ANNOUNCER: This is LOU DOBBS TONIGHT, news debate and opinion for Friday, August 10. Live from New York, sitting in for Lou Dobbs, Kitty Pilgrim.
PILGRIM: Good evening, everybody. Rescue workers in Utah tonight are drilling a second hole 1,900 feet deep to reach a group of trapped coal miners. Six miners have been trapped underground since Monday. A first hole may have been off target and ended up in the wrong chamber.
Ted Rollins is in Huntington, Utah, and he joins me with the latest.
Ted.
TED ROLLINS, CNN CORRESPONDENT: Kitty, first news was heart breaking that the hole had been drilled, a microphone had gone down and there was no signs of life. But now there's a silver ling to that, because oxygen samples from the cavity that they did drill into were so low, that they would not be able to sustain human life. So relatives are hoping that indeed it was the wrong chamber and then when the larger drill gets in some time late tonight, early tomorrow, they will be in the right spot and get good news out of this.
This has been a roller coaster ride for them starting on Monday when the six miners are trapped. It is Friday. They are tired, weary and very, very worried about their loved ones. The drilling continues. They are also continuing to move through the mine to get to the miners themselves. If the miners are alive, it will take a few days, up to a week possibly, to go in and get them. It all depends on the level of rock that they encounter and whether or not they have any more disturbances.
The drill that they are waiting on right now is progressing fine, according to mine officials. That could change. They may slow down. But at this point relatives are hoping for word on the fate of their loved ones some time tonight, maybe into the early morning hours tomorrow.
Kitty.
PILGRIM: Ted, are they bringing in more sensitive monitoring equipment? ROLLINS: They are bringing in larger equipment, which is more sensitive and the camera that they will be able to put down, this 8 5/8 of an inch hole will give them the be ability once it's in there to look around and see for an extended distance. They will be able to tell definitively if they are in the right spot, which they say they can direct. It's a directional drill. They will be able to put it where they want it, get the large camera in and have some real answers for these family members that have been waiting so patiently and going through this horrific nightmare.
PILGRIM: A horrific nightmare, as you say. Thank you very much, Ted Rollins.
Well, three construction workers were killed at an Indiana coal mine today. The accident happened during the construction of an air shaft at Princeton, Indiana. There was no cave-in or collapse. Mine officials said no one else was believed to be injured or trapped.
Now divers searching the Mississippi River in Minneapolis recovered more human remains today. The divers are continuing their search for victims of the August 1 collapse of the I-35 Bridge. At least nine people are dead, several people still missing. Congress has approved $250 million in aid to help Minnesota recover from the loss of that bridge.
In Washington today, the Bush Administration announced what it says is a new crackdown on companies that hire illegal aliens. Officials and employers who ignore our immigration laws will face heavy fines. Some republicans, however, believe the plan is a blatant attempt to win over critics of President Bush's amnesty agenda.
Lisa Sylvester reports from Washington.
LISA SYLVESTER, CNN CORRESPONDENT: Two cabinet secretaries made the announcement, a new get-tough strategy on illegal immigration.
MICHAEL CHERTOFF, HOMELAND SECURITY SECRETARY: The magnet that brings more economic migrants into this country is work. If we have work site enforcement directed at illegal employment, we strike at that magnet.
SYLVESTER: The proposal calls for more border agents, adds new fencing, promotes an employment verification system, and requires company fire any workers caught using phony social security numbers. The administration's announcement comes after the collapse of the White House-backed come comprehensive immigration plan in the Senate. Immigration reformists were cautiously optimistic.
REP. BRIAN BILBRAY (R), CALIFORNIA: I think we are finally hearing an echo of what the American people were saying last month. While Washington was talking about amnesty, the American people were saying, how about enforcing the law?
SYLVESTER: But some critics questioned whether the administration is in fear about its illegal immigration crackdown or trying to lay the ground work for north attempt at a guest worker amnesty bill. Senator Chuck Grassley wants more than a just press conference and words on a piece of paper.
JIM EDWARDS, IMMIGRATION CONSULTANT: We are 6 1/2 years into this administration and they are finally waking up and saying we are going to enforce the laws on the books. It's a little tough on credulity to buy.
SYLVESTER: Commerce Secretary Carlos Gutierrez acknowledged the administration has not given up hope for a guest worker program and legalization of illegal aliens.
CARLOS GUTIERREZ, COMMERCE SECRETARY: It is clear there are jobs Americans are not willing to do or Americans are not available to do, and we need to acknowledge this reality.
SYLVESTER: Business groups worry that the new regulations will cripple certain industries.
RANDY JOHNSON, U.S. CHAMBER OF COMMERCE: I think it will have a suggest effect on a select number of employers in certain industries such as construction, roofing, agriculture, hotel, motels.
SYLVESTER: The new rules do not require congressional approval. The requirements for employers to verify social security numbers will be effective in 30 days.
Skeptics say they are not buying the administration's plan just yet for several reasons. There's no additional money set side to implement these plans. Not all employers in the United States will be required to use the employment verification system. Only those who want to do business with the federal government. And unless more immigration enforcement agents checking to make sure companies are complying with the new rules, it will be more of the same.
Kitty.
PILGRIM: Unbelievable. Thanks very much, Lisa Sylvester.
Well as Lisa just reported, President Bush said he's determined to build on the progress already made towards so-called comprehensive immigration reform. Many republicans believe the president is planning to reintroduce his amnesty agenda.
Now Elaine Quijano reports from near the president's home in Kennebunkport, Maine.
Elaine.
ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Hello to you, Kitty.
The president spent some time out on the boat with his father, the former President Bush as well as his brother, Jeb, but this is a working vacation and the president today was clearly trying to send the message that the administration is serious about enforcing existing immigration laws. The message to conservatives, essentially, as the president wants to try and restore credibility that it understands the concerns about the border.
At the same time the Bush Administration was also clearly trying to send a message and put the onus on the democratically led Congress on the issue of immigration reform. As administration officials say even though President Bush was not successful in pushing through comprehensive legislation, there's still an obligation, they say, to address the issue.
The question some critics are asking, why did the Bush Administration not take these actions sooner? White House Deputy Press Secretary Dana Perino said the president held off while Congress was looking at possibly passing that comprehensive immigration legislation. Now, of course, with the measure defeated, Perino said they are going as far as they possibly can without Congress acting.
Kitty.
PILGRIM: Thank you very much, Elaine Quijano. An obligation to address the issue probably sums it up very well.
Tonight there is more evidence that this country's failed immigration policy is allowing dangerous criminals into this country. An illegal alien out on bail for previous violent crimes is charged in the execution style killing of three college students in one of this country sanctuary cities. Allen Chernoff is in Newark, New Jersey with more.
Allan.
ALLAN CHERNOFF, CNN CORRESPONDENT: Good evening Kitty.
A 28-year-old illegal immigrant from Peru, Jose Carranza, was charged and today pled not guilty to murder in the triple homicide of three college students here in Newark.
After that case it was revealed to the public indeed Mr. Carranza has already been facing other criminal cases. In fact, these indictments are absolutely chilling. They detail the fact that according to the prosecution, he is charged with raping repeatedly a young girl, four, five and six years of age, when she was that young, and he did plead not guilty in that case and in fact he met bail on that case and another case where he is charged with assaulting four men with a bottle and chair. Total bail of $200,000. But it was only when this case actually came that authorities recognized Carranza was in the country illegally.
TOM MCTIDE, LEAD ASST. PROSECUTOR: We determined that this person was an undocumented alien as we were conducting the homicide investigation. We are going to leave it at that. The procedure is complex. Notifying the federal authorities.
CHERNOFF: The way it works here in New Jersey in terms of notifying the authorities, they are notified only after a person is convicted. Carranza has not been convicted.
We have a statement from the immigration and customs enforcement. "The Ice Law Enforcement Support Center was not contacted regarding prior arrests. We were notified yesterday and we immediately placed an immigration detainer on him."
There is a second person charged in this triple homicide, a 15- year-old Latino. He is in the country legally, we understand. Funerals for the three dead victims will be held tomorrow.
Kitty.
PILGRIM: Allan, a question, why would a judge allow an illegal alien, who is an obvious flight risk, to post bond? That's really the question here.
CHERNOFF: What authorities are saying here is that they believe Carranza was not a flight risk. He actually did appear at all of his court hearings. He did post the bail. Apparently he worked as a construction worker, had a fair amount of money. They say he wasn't a flight risk.
PILGRIM: Unbelievable. Allan Chernoff, thanks very much, Allan.
Well, Allan will join us with an update on this horrifying case. Jose Carranza is just one of hundreds of thousands of criminal illegal aliens living in this country. According to the Immigration and Custom Enforcement, there are currently 600,000 fugitive aliens and these are foreign nationals that have failed to appear for immigration hearings or have ignored orders to leave the country. Now of those fugitive aliens, 100,000 to 120,000 are also criminal aliens, like Jose Carranza. These criminal aliens have been convicted of local, state or federal crimes.
Still ahead, skepticism in Congress about the Bush Administration's so-called crackdown on illegal immigration.
Also a critical test of republican presidential candidates takes place in Iowa this weekend. We will bring you the latest on that.
And new fears, the housing crisis could turn into a recession that will devastate middle class American families.
(COMMERCIAL BREAK)
PILGRIM: Leading democrats tonight are blasting the Bush Administration for its so-called crackdown on illegal immigration. Those democrats and other pro-amnesty supporters say only comprehensive immigration reform will solve our illegal immigration crisis.
Jessica Yellin reports from Capitol Hill.
JESSICA YELLIN, CNN CORRESPONDENT: Congressional democrats are slamming the president's plan for stepped-up enforcement. Senator Ted Kennedy says it will do little to enhance our security and will hurt millions of immigrant families. Senator Dianne Feinstein dismisses it as a band-aid. Democrats are especially concerned the new rules will force business owners to fire workers, whose legal status they can't verify. Senator Dianne Feinstein warns American farmers could lose 70 percent of their labor force just as fall harvest begins. But republicans have long said any immigration reform begins with enforcement of existing laws. And with this announcement, it would seem the administration is listening.
CHERTOFF: Until the laws change, we are enforcing the laws as they are to the utmost of our ability using every tool we have in the toolbox.
YELLIN: Many in the president's party are applauding the get tough policy. But republican critics the president's comprehensive immigration reform plans worry today's announcement is just the beginning of a new White House push for a guest worker program.
REP. TOM TANCREDO (R) PRESIDENTIAL CANDIDATE: This is just a prelude because they are absolutely obsessed with amnesty for the people here illegally and opening the gates to the rest.
YELLIN: One analyst says Congress and the American public are so divided on this issue, action is unlikely.
STU ROTHENBERG, THE ROTHENBERG POLITICAL REPORT: There are simply is not a consensus on Capitol Hill for an immigration bill. The president said he would like one. If you ask legislators from both parties, they all would like one. The problem is, they all want different bills. There's nothing that can get through.
YELLIN: After immigration reforms failed in June, congressional leaders declared the issue all but dead and there's slim to no chance it will come up again this year.
Kitty.
PILGRIM: Thanks very much, Jessica Yellin. Thanks, Jessica.
Well, republican presidential candidates face a critical test in Iowa this weekend. An informal straw pole in Aims, Iowa, could force some candidates to reconsider their ambitions. Some have been winning support at the Iowa state fair in Des Moines.
And Bill Schneider is there and reports from Des Moines.
BILL SCHNEIDER, CNN CORRESPONDENT: It may look like a circus but it's really a big-time political event. Look at all of the republicans at the Iowa state fair. Mike Huckabee, Sam Brownback, Tom Tancredo, Tommy Thompson, hey, there's Newt Gingrich. What about the national front runners? Rudy Giuliani is leading the republican field in our new national poll, followed by undeclared candidate Fred Thompson and then John McCain. None of those three nationally top- ranked republicans is participating in Saturday's straw pole, which leaves Mitt Romney, the number four national contender, as the favorite. In fact, Romney is leading in Iowa republican caucus goers. He's expected to win the straw pole. The question is, how big? MITT ROMNEY (R) PRESIDENTIAL CANDIDATE: That's why we are here, to get more support. It would be a real challenge. We all hope to do well and I home that hopes to do well.
SCHNEIDER: Will it be a big enough win to give Romney a big story and boost in the national polls? Or will he stumble? There's a hot contest for second place in the straw poll. The top contenders, Tommy Thompson, Sam Brownback and Mike Huckabee.
MIKE HUCKABEE (R) PRESIDENTIAL CANDIDATE: I hope we will see you tomorrow in Aims. We could use your help.
SCHNEIDER: A poor showing in the straw poll could lead one or two of them to reconsider their campaign.
DENNIS GOLDFORD, DRAKE UNIVERSITY: The question is how much will the straw poll thin the herd? In 1999, it knocked out Lamar Alexander, Dan Quayle and Elizabeth Dole because they can't do well enough to keep their campaign donations flowing.
SCHNEIDER: And then there's the possibility of a surprise. Ron Paul has a fervent following on the internet. Tom Tancredo has a hot issue, immigration. It's estimated that close to 40 percent of the Iowa republicans are social conservatives.
GOLDFORD: This is where Pat Robertson made his breakout and showed up on the radar screen a long time ago.
SCHNEIDER: Some conservative evangelicals have not been entirely comfortable with Mitt Romney because he's changed position on some social issues and because of his Mormon faith. A strong finish here in Iowa could help resolve some of their concerns.
Kitty.
PILGRIM: It's getting interesting. Thanks very much, Bill Schneider. Thanks Bill.
Time for some of your thoughts now. Carl in Nevada wrote to us, "To hold a presidential debate in Spanish is idiotic. You need to know English to be able to be a citizen and you need to be a citizen to vote, that is if the law is being enforced, oh, I forgot. It's the Bush reign."
And Elizabeth in New York wrote to us, "Bush keeps talking about beefing up our border security so why doesn't he do it? If he really wanted to, he could have done it years ago. It's that simple."
And Sandra in Florida, "I've decided your show is not long enough to cover all of the ridiculous things going on in our government. Will there be enough in the day to cover all the lunacy? Thanks for all you manage to do in one hour." I am sure that Lou would thank you.
We have more of your emails later in the broadcast and we will bring them to you. And just ahead, the escalating housing crisis in the country its devastating impact on middle class Americans.
We'll have more on the execution style slaying of three college students also in Newark, New Jersey. The man charged is an illegal alien living in one of our sanctuary cities.
Stay with us.
(COMMERCIAL BREAK)
PILGRIM: Credit concerns in this country sent world financial markets on wild ride today. The Dow industrials and NASDAQ ended slightly lower, recovering from steep losses earlier in the day. As Christine Romans reports, some analysts believe the markets and the economy are still very vulnerable to these sub prime mortgage mess.
CHRISTINE ROMANS, CNN CORRESPONDENT: For banks, companies and the middle class, the crisis in the mortgage market means a credit crunch.
JOSH DIVENS, ECONOMIC POLITY INSTITUTE: That will affect people who opportunity buy a house, who want to buy a car, who want to buy an appliance on credit.
ROMANS: Worst, the economist said, a major driver of the economy just disappeared. Homeowners' ability to tap and spend their home equity.
DIVENS: I think that radically increases the possible of the a real economic down turn or recession.
ROMANS: There are indeed a few calls for recession. Others say the turmoil is temporary.
LAWRENCE YUN, NATIONAL ASSOCIATION OF REALTORS: It is a market over reaction. Right now Wall Street and the investors are just staying way from all mortgage markets. As a result, it is more difficult to borrow money, even for prime borrowers.
ROMANS: As the world markets reel, the president described the U.S. economy as thriving. And central banks in Europe and the United States pumped hundreds of billions of dollars into the banking system to keep credit markets working. Already first-time buyers and families seeking to move into larger homes are having trouble securing loans.
BRAD INMAN, INMAN NEWS: We now have a first-time buyer and move- up market that's in trouble, which means more chaos in the housing market, which means following prices, which means it's harder to get loans. It's really rolling thunder and quite scary.
ROMANS: Especially scary for the half million owners at least 60 days late in their mortgage payment and for hundreds of thousands with adjustable rate mortgages. Their mortgage payments are skyrocketing while their home values are falling. A disastrous combination. Even refinancing those adjustable loans today has become more difficult as banks have tightened their lending requirements, Kitty.
PILGRIM: Christine, this cuts right to the heart of Middle America. Your home is a major investment for many, many people in this country. And to have this kind of uncertainty and then have it in the market is a shocking thing. What are the projections on this?
ROMANS: Well, it's so interesting because the projections are all over the board. We talk about housing prices, the National Association of Realtors says maybe a one percent overall price decline this year and prices will start to rise next year. A lot of analysts are saying that's just not realistic.
If you're looking at some of the hot markets, there are estimates up to 30 percent for price depreciation peak to trough for housing pricing. That's really going to hurt. Elsewhere you're seeing eight percent.
There's such a wide range. We just really do not know what to expect right now and that feeds into the uncertainty about all of this.
In terms of those sub prime mortgages that have been packaged and sold, a lot of folks don't even know where those are lurking in portfolios around the world and that's another uncertainty that's making people very, very nervous.
PILGRIM: Thanks very much, Christine Romans.
And coming up, a critical maneuver by the shuttle "Endeavour" and reports of minor damage to the spacecraft. We'll tell you all about that.
Also, employers who obey our immigration laws are furious with companies that hire illegal aliens.
We will have the very latest on the illegal alien who lived in a sanctuary city and then allegedly murdered three college students in cold blood.
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PILGRIM: As we reported earlier, more evidence that our broken borders are allowing dangerous criminals to enter this country. An illegal alien out on bail for previous crimes in this country is charged in the execution style killing of three college students. The killings happen in one of the nation's sanctuary cities. Allan Chernoff is in New York with the latest developments.
CHERNOFF: That's right, Kitty, he is a 28-year-old illegal immigrant from Peru, Jose Carranza. He was charged and now in court today. He did plead not guilty to the charge of murder as well as attempted murder, robbery and weapons possession. He was facing other criminal charges as well, and these are entirely separate cases. First of all, we are talking about a case where he assaulted four men with a bottle and a chair and most shocking of all, he is charged with raping a young girl when she was four, five and six years old over a long period of time.
FRANK SEZNO (ph): We do work hard, don't we?
MILES O'BRIEN, CNN CORRESPONDENT: All right. Let's give it a swirl. Frank Sezno (ph), thanks.
LOU DOBBS TONIGHT starts right now. Here's Kitty Pilgrim.
KITTY PILGRIM, CNN CORRESPONDENT: Thanks Miles. Tonight the White House declares it will reinforce our existing immigration laws. Now is the administration playing politics to win over the republican debate.
Also, businesses that obey the law are fed up with companies that hire illegal aliens. They're worried the government's so called crack down will be another empty promise.
And three college students gunned down in an execution style murder in Newark, New Jersey. One of those charged with the murders is an illegal alien who is living in one of our sanctuary cities.
All of that and the day's news, much more straight ahead tonight.
ANNOUNCER: This is LOU DOBBS TONIGHT, news debate and opinion for Friday, August 10. Live from New York, sitting in for Lou Dobbs, Kitty Pilgrim.
PILGRIM: Good evening, everybody. Rescue workers in Utah tonight are drilling a second hole 1,900 feet deep to reach a group of trapped coal miners. Six miners have been trapped underground since Monday. A first hole may have been off target and ended up in the wrong chamber.
Ted Rollins is in Huntington, Utah, and he joins me with the latest.
Ted.
TED ROLLINS, CNN CORRESPONDENT: Kitty, first news was heart breaking that the hole had been drilled, a microphone had gone down and there was no signs of life. But now there's a silver ling to that, because oxygen samples from the cavity that they did drill into were so low, that they would not be able to sustain human life. So relatives are hoping that indeed it was the wrong chamber and then when the larger drill gets in some time late tonight, early tomorrow, they will be in the right spot and get good news out of this.
This has been a roller coaster ride for them starting on Monday when the six miners are trapped. It is Friday. They are tired, weary and very, very worried about their loved ones. The drilling continues. They are also continuing to move through the mine to get to the miners themselves. If the miners are alive, it will take a few days, up to a week possibly, to go in and get them. It all depends on the level of rock that they encounter and whether or not they have any more disturbances.
The drill that they are waiting on right now is progressing fine, according to mine officials. That could change. They may slow down. But at this point relatives are hoping for word on the fate of their loved ones some time tonight, maybe into the early morning hours tomorrow.
Kitty.
PILGRIM: Ted, are they bringing in more sensitive monitoring equipment?
ROLLINS: They are bringing in larger equipment, which is more sensitive and the camera that they will be able to put down, this 8 5/8 of an inch hole will give them the be ability once it's in there to look around and see for an extended distance. They will be able to tell definitively if they are in the right spot, which they say they can direct. It's a directional drill. They will be able to put it where they want it, get the large camera in and have some real answers for these family members that have been waiting so patiently and going through this horrific nightmare.
PILGRIM: A horrific nightmare, as you say. Thank you very much, Ted Rollins.
Well, three construction workers were killed at an Indiana coal mine today. The accident happened during the construction of an air shaft at Princeton, Indiana. There was no cave-in or collapse. Mine officials said no one else was believed to be injured or trapped.
Now divers searching the Mississippi River in Minneapolis recovered more human remains today. The divers are continuing their search for victims of the August 1 collapse of the I-35 Bridge. At least nine people are dead, several people still missing. Congress has approved $250 million in aid to help Minnesota recover from the loss of that bridge.
In Washington today, the Bush Administration announced what it says is a new crackdown on companies that hire illegal aliens. Officials and employers who ignore our immigration laws will face heavy fines. Some republicans, however, believe the plan is a blatant attempt to win over critics of President Bush's amnesty agenda. Lisa Sylvester reports from Washington.
LISA SYLVESTER, CNN CORRESPONDENT: Two cabinet secretaries made the announcement, a new get-tough strategy on illegal immigration.
MICHAEL CHERTOFF, HOMELAND SECURITY SECRETARY: The magnet that brings more economic migrants into this country is work. If we have work site enforcement directed at illegal employment, we strike at that magnet.
SYLVESTER: The proposal calls for more border agents, adds new fencing, promotes an employment verification system, and requires company fire any workers caught using phony social security numbers. The administration's announcement comes after the collapse of the White House-backed come comprehensive immigration plan in the Senate. Immigration reformists were cautiously optimistic.
REP. BRIAN BILBRAY (R), CALIFORNIA: I think we are finally hearing an echo of what the American people were saying last month. While Washington was talking about amnesty, the American people were saying, how about enforcing the law?
SYLVESTER: But some critics questioned whether the administration is in fear about its illegal immigration crackdown or trying to lay the ground work for north attempt at a guest worker amnesty bill. Senator Chuck Grassley wants more than a just press conference and words on a piece of paper.
JIM EDWARDS, IMMIGRATION CONSULTANT: We are 6 1/2 years into this administration and they are finally waking up and saying we are going to enforce the laws on the books. It's a little tough on credulity to buy.
SYLVESTER: Commerce Secretary Carlos Gutierrez acknowledged the administration has not given up hope for a guest worker program and legalization of illegal aliens.
CARLOS GUTIERREZ, COMMERCE SECRETARY: It is clear there are jobs Americans are not willing to do or Americans are not available to do, and we need to acknowledge this reality.
SYLVESTER: Business groups worry that the new regulations will cripple certain industries.
RANDY JOHNSON, U.S. CHAMBER OF COMMERCE: I think it will have a suggest effect on a select number of employers in certain industries such as construction, roofing, agriculture, hotel, motels.
SYLVESTER: The new rules do not require congressional approval. The requirements for employers to verify social security numbers will be effective in 30 days.
Skeptics say they are not buying the administration's plan just yet for several reasons. There's no additional money set side to implement these plans. Not all employers in the United States will be required to use the employment verification system. Only those who want to do business with the federal government. And unless more immigration enforcement agents checking to make sure companies are complying with the new rules, it will be more of the same.
Kitty.
PILGRIM: Unbelievable. Thanks very much, Lisa Sylvester.
Well as Lisa just reported, President Bush said he's determined to build on the progress already made towards so-called comprehensive immigration reform. Many republicans believe the president is planning to reintroduce his amnesty agenda.
Now Elaine Quijano reports from near the president's home in Kennebunkport, Maine.
Elaine.
ELAINE QUIJANO, CNN WHITE HOUSE CORRESPONDENT: Hello to you, Kitty.
The president spent some time out on the boat with his father, the former President Bush as well as his brother, Jeb, but this is a working vacation and the president today was clearly trying to send the message that the administration is serious about enforcing existing immigration laws. The message to conservatives, essentially, as the president wants to try and restore credibility that it understands the concerns about the border.
At the same time the Bush Administration was also clearly trying to send a message and put the onus on the democratically led Congress on the issue of immigration reform. As administration officials say even though President Bush was not successful in pushing through comprehensive legislation, there's still an obligation, they say, to address the issue.
The question some critics are asking, why did the Bush Administration not take these actions sooner? White House Deputy Press Secretary Dana Perino said the president held off while Congress was looking at possibly passing that comprehensive immigration legislation. Now, of course, with the measure defeated, Perino said they are going as far as they possibly can without Congress acting.
Kitty.
PILGRIM: Thank you very much, Elaine Quijano. An obligation to address the issue probably sums it up very well.
Tonight there is more evidence that this country's failed immigration policy is allowing dangerous criminals into this country. An illegal alien out on bail for previous violent crimes is charged in the execution style killing of three college students in one of this country sanctuary cities. Allen Chernoff is in Newark, New Jersey with more.
Allan.
ALLAN CHERNOFF, CNN CORRESPONDENT: Good evening Kitty.
A 28-year-old illegal immigrant from Peru, Jose Carranza, was charged and today pled not guilty to murder in the triple homicide of three college students here in Newark.
After that case it was revealed to the public indeed Mr. Carranza has already been facing other criminal cases. In fact, these indictments are absolutely chilling. They detail the fact that according to the prosecution, he is charged with raping repeatedly a young girl, four, five and six years of age, when she was that young, and he did plead not guilty in that case and in fact he met bail on that case and another case where he is charged with assaulting four men with a bottle and chair. Total bail of $200,000. But it was only when this case actually came that authorities recognized Carranza was in the country illegally.
TOM MCTIDE, LEAD ASST. PROSECUTOR: We determined that this person was an undocumented alien as we were conducting the homicide investigation. We are going to leave it at that. The procedure is complex. Notifying the federal authorities.
CHERNOFF: The way it works here in New Jersey in terms of notifying the authorities, they are notified only after a person is convicted. Carranza has not been convicted.
We have a statement from the immigration and customs enforcement. "The Ice Law Enforcement Support Center was not contacted regarding prior arrests. We were notified yesterday and we immediately placed an immigration detainer on him."
There is a second person charged in this triple homicide, a 15- year-old Latino. He is in the country legally, we understand. Funerals for the three dead victims will be held tomorrow.
Kitty.
PILGRIM: Allan, a question, why would a judge allow an illegal alien, who is an obvious flight risk, to post bond? That's really the question here.
CHERNOFF: What authorities are saying here is that they believe Carranza was not a flight risk. He actually did appear at all of his court hearings. He did post the bail. Apparently he worked as a construction worker, had a fair amount of money. They say he wasn't a flight risk.
PILGRIM: Unbelievable. Allan Chernoff, thanks very much, Allan.
Well, Allan will join us with an update on this horrifying case. Jose Carranza is just one of hundreds of thousands of criminal illegal aliens living in this country. According to the Immigration and Custom Enforcement, there are currently 600,000 fugitive aliens and these are foreign nationals that have failed to appear for immigration hearings or have ignored orders to leave the country. Now of those fugitive aliens, 100,000 to 120,000 are also criminal aliens, like Jose Carranza. These criminal aliens have been convicted of local, state or federal crimes.
Still ahead, skepticism in Congress about the Bush Administration's so-called crackdown on illegal immigration.
Also a critical test of republican presidential candidates takes place in Iowa this weekend. We will bring you the latest on that.
And new fears, the housing crisis could turn into a recession that will devastate middle class American families.
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PILGRIM: Leading democrats tonight are blasting the Bush Administration for its so-called crackdown on illegal immigration. Those democrats and other pro-amnesty supporters say only comprehensive immigration reform will solve our illegal immigration crisis.
Jessica Yellin reports from Capitol Hill.
JESSICA YELLIN, CNN CORRESPONDENT: Congressional democrats are slamming the president's plan for stepped-up enforcement. Senator Ted Kennedy says it will do little to enhance our security and will hurt millions of immigrant families. Senator Dianne Feinstein dismisses it as a band-aid.
Democrats are especially concerned the new rules will force business owners to fire workers, whose legal status they can't verify. Senator Dianne Feinstein warns American farmers could lose 70 percent of their labor force just as fall harvest begins. But republicans have long said any immigration reform begins with enforcement of existing laws. And with this announcement, it would seem the administration is listening.
CHERTOFF: Until the laws change, we are enforcing the laws as they are to the utmost of our ability using every tool we have in the toolbox.
YELLIN: Many in the president's party are applauding the get tough policy. But republican critics the president's comprehensive immigration reform plans worry today's announcement is just the beginning of a new White House push for a guest worker program.
REP. TOM TANCREDO (R) PRESIDENTIAL CANDIDATE: This is just a prelude because they are absolutely obsessed with amnesty for the people here illegally and opening the gates to the rest.
YELLIN: One analyst says Congress and the American public are so divided on this issue, action is unlikely.
STU ROTHENBERG, THE ROTHENBERG POLITICAL REPORT: There are simply is not a consensus on Capitol Hill for an immigration bill. The president said he would like one. If you ask legislators from both parties, they all would like one. The problem is, they all want different bills. There's nothing that can get through. YELLIN: After immigration reforms failed in June, congressional leaders declared the issue all but dead and there's slim to no chance it will come up again this year.
Kitty.
PILGRIM: Thanks very much, Jessica Yellin. Thanks, Jessica.
Well, republican presidential candidates face a critical test in Iowa this weekend. An informal straw pole in Aims, Iowa, could force some candidates to reconsider their ambitions. Some have been winning support at the Iowa state fair in Des Moines.
And Bill Schneider is there and reports from Des Moines.
BILL SCHNEIDER, CNN CORRESPONDENT: It may look like a circus but it's really a big-time political event. Look at all of the republicans at the Iowa state fair. Mike Huckabee, Sam Brownback, Tom Tancredo, Tommy Thompson, hey, there's Newt Gingrich. What about the national front runners? Rudy Giuliani is leading the republican field in our new national poll, followed by undeclared candidate Fred Thompson and then John McCain. None of those three nationally top- ranked republicans is participating in Saturday's straw pole, which leaves Mitt Romney, the number four national contender, as the favorite. In fact, Romney is leading in Iowa republican caucus goers. He's expected to win the straw pole. The question is, how big?
MITT ROMNEY (R) PRESIDENTIAL CANDIDATE: That's why we are here, to get more support. It would be a real challenge. We all hope to do well and I home that hopes to do well.
SCHNEIDER: Will it be a big enough win to give Romney a big story and boost in the national polls? Or will he stumble? There's a hot contest for second place in the straw poll. The top contenders, Tommy Thompson, Sam Brownback and Mike Huckabee.
MIKE HUCKABEE (R) PRESIDENTIAL CANDIDATE: I hope we will see you tomorrow in Aims. We could use your help.
SCHNEIDER: A poor showing in the straw poll could lead one or two of them to reconsider their campaign.
DENNIS GOLDFORD, DRAKE UNIVERSITY: The question is how much will the straw poll thin the herd? In 1999, it knocked out Lamar Alexander, Dan Quayle and Elizabeth Dole because they can't do well enough to keep their campaign donations flowing.
SCHNEIDER: And then there's the possibility of a surprise. Ron Paul has a fervent following on the internet. Tom Tancredo has a hot issue, immigration. It's estimated that close to 40 percent of the Iowa republicans are social conservatives.
GOLDFORD: This is where Pat Robertson made his breakout and showed up on the radar screen a long time ago.
SCHNEIDER: Some conservative evangelicals have not been entirely comfortable with Mitt Romney because he's changed position on some social issues and because of his Mormon faith. A strong finish here in Iowa could help resolve some of their concerns.
Kitty.
PILGRIM: It's getting interesting. Thanks very much, Bill Schneider. Thanks Bill.
Time for some of your thoughts now. Carl in Nevada wrote to us, "To hold a presidential debate in Spanish is idiotic. You need to know English to be able to be a citizen and you need to be a citizen to vote, that is if the law is being enforced, oh, I forgot. It's the Bush reign."
And Elizabeth in New York wrote to us, "Bush keeps talking about beefing up our border security so why doesn't he do it? If he really wanted to, he could have done it years ago. It's that simple."
And Sandra in Florida, "I've decided your show is not long enough to cover all of the ridiculous things going on in our government. Will there be enough in the day to cover all the lunacy? Thanks for all you manage to do in one hour." I am sure that Lou would thank you.
We have more of your emails later in the broadcast and we will bring them to you.
And just ahead, the escalating housing crisis in the country its devastating impact on middle class Americans.
We'll have more on the execution style slaying of three college students also in Newark, New Jersey. The man charged is an illegal alien living in one of our sanctuary cities.
Stay with us.
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PILGRIM: Credit concerns in this country sent world financial markets on wild ride today. The Dow industrials and NASDAQ ended slightly lower, recovering from steep losses earlier in the day. As Christine Romans reports, some analysts believe the markets and the economy are still very vulnerable to these sub prime mortgage mess.
CHRISTINE ROMANS, CNN CORRESPONDENT: For banks, companies and the middle class, the crisis in the mortgage market means a credit crunch.
JOSH DIVENS, ECONOMIC POLITY INSTITUTE: That will affect people who opportunity buy a house, who want to buy a car, who want to buy an appliance on credit.
ROMANS: Worst, the economist said, a major driver of the economy just disappeared. Homeowners' ability to tap and spend their home equity.
DIVENS: I think that radically increases the possible of the a real economic down turn or recession.
ROMANS: There are indeed a few calls for recession. Others say the turmoil is temporary.
LAWRENCE YUN, NATIONAL ASSOCIATION OF REALTORS: It is a market over reaction. Right now Wall Street and the investors are just staying way from all mortgage markets. As a result, it is more difficult to borrow money, even for prime borrowers.
ROMANS: As the world markets reel, the president described the U.S. economy as thriving. And central banks in Europe and the United States pumped hundreds of billions of dollars into the banking system to keep credit markets working. Already first-time buyers and families seeking to move into larger homes are having trouble securing loans.
BRAD INMAN, INMAN NEWS: We now have a first-time buyer and move- up market that's in trouble, which means more chaos in the housing market, which means following prices, which means it's harder to get loans. It's really rolling thunder and quite scary.
ROMANS: Especially scary for the half million owners at least 60 days late in their mortgage payment and for hundreds of thousands with adjustable rate mortgages. Their mortgage payments are skyrocketing while their home values are falling. A disastrous combination.
Even refinancing those adjustable loans today has become more difficult as banks have tightened their lending requirements, Kitty.
PILGRIM: Christine, this cuts right to the heart of Middle America. Your home is a major investment for many, many people in this country. And to have this kind of uncertainty and then have it in the market is a shocking thing. What are the projections on this?
ROMANS: Well, it's so interesting because the projections are all over the board. We talk about housing prices, the National Association of Realtors says maybe a one percent overall price decline this year and prices will start to rise next year. A lot of analysts are saying that's just not realistic.
If you're looking at some of the hot markets, there are estimates up to 30 percent for price depreciation peak to trough for housing pricing. That's really going to hurt. Elsewhere you're seeing eight percent.
There's such a wide range. We just really do not know what to expect right now and that feeds into the uncertainty about all of this.
In terms of those sub prime mortgages that have been packaged and sold, a lot of folks don't even know where those are lurking in portfolios around the world and that's another uncertainty that's making people very, very nervous.
PILGRIM: Thanks very much, Christine Romans. And coming up, a critical maneuver by the shuttle "Endeavour" and reports of minor damage to the spacecraft. We'll tell you all about that.
Also, employers who obey our immigration laws are furious with companies that hire illegal aliens.
We will have the very latest on the illegal alien who lived in a sanctuary city and then allegedly murdered three college students in cold blood.
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PILGRIM: As we reported earlier, more evidence that our broken borders are allowing dangerous criminals to enter this country. An illegal alien out on bail for previous crimes in this country is charged in the execution style killing of three college students. The killings happen in one of the nation's sanctuary cities. Allan Chernoff is in New York with the latest developments.
CHERNOFF: That's right, Kitty, he is a 28-year-old illegal immigrant from Peru, Jose Carranza. He was charged and now in court today. He did plead not guilty to the charge of murder as well as attempted murder, robbery and weapons possession. He was facing other criminal charges as well, and these are entirely separate cases.
First of all, we are talking about a case where he assaulted four men with a bottle and a chair and most shocking of all, he is charged with raping a young girl when she was four, five and six years old over a long period of time.
