Return to Transcripts main page
Live From...
U.S. Soldiers Charged in Iraqi Rape and Murder Probe; Italy Celebrates World Cup Victory; U.N. Mulls Japan Resolution on North Korea; Explosions Rock Resort in Northeast Wisconsin
Aired July 10, 2006 - 15:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: A lot of New Yorkers shaken up today, and this is why. You are seeing what used to be a four-story building on the city's Upper East Side. A huge explosion reduced it to rubble this morning.
Our senior correspondent, Allan Chernoff, is there.
Any more word on the fact this might be a possible suicide attempt, Allan?
ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: Well, Kyra, here's what we do know about that.
First of all, it was the fire commissioner of New York who actually mentioned that possibility this morning. He said that the doctor who lived in the building, in the townhouse, had his offices and residence there. Dr. Nicholas Bartha had actually sent an e-mail recently indicating the possibility that he might commit suicide.
Here's what we can tell you about the doctor. He had been involved in a very, very messy divorce with his wife. That townhouse that exploded this morning was purchased by Dr. Bartha and his parents back in 1980 for only about $400,000.
It was recently assessed at more than $5 million. And the court decision in the divorce proceedings awarded the wife $1.2 million for the home. So, it appears that the home would have been sold as part of this whole divorce settlement.
Now, whether or not there actually had been any suicide effort, we simply do not know. Let's emphasize, once again, the fire commissioner said it was speculation on his part.
What we do know is the fact that there had been, actually, some gas trouble in the building recently. One month ago, the meter reader told me from Con Edison, the utility here, told me that there had been a gas leak in the building, and that the gas had been shut down. The doorman from the apartment building next door told me that, only last week, there had been a gas leak as well.
So, it appears that there had been a continuing issue with the natural gas from that building. We don't know whether that was accidental, whether it was intentional. That is yet to be determined.
Now, in terms of the explosion, it was a four-story townhouse here on the very expensive Upper East Side of Manhattan. More than 200 firefighters were involved in this explosion, in treating the victims, and also putting the fire out, and still now actually going through more than 20 feet of rubble.
They do not believe that there is anybody trapped under that rubble, but they want to be sure. Five civilians were injured here, including the doctor who was pulled out from the rubble. He suffered severe burns. And he is now at New York Presbyterian Hospital and being treated for that, Presbyterian Hospital, the premier burn center in the New York City region.
Four pedestrians happened to be in the wrong place at the wrong time. Two of them on the same side of the street of the building, walking just west of the building, they had lacerations from head to toe. That's what the emergency medical technician on the scene told me. He treated them, had sent them to the hospital immediately.
So, Kyra, five civilians injured, 10 firefighters with minor injuries -- back to you.
PHILLIPS: Allan Chernoff, appreciate the update.
Well, a resort community shattered by a string of explosions -- it happened early today at Ellison Bay in northeast Wisconsin. Just take a look at the damage done to several buildings here. Two people are still unaccounted for. Seven others are hurt. Officials suspect that a gas leak made be -- may be to blame.
If you don't know the Door County area, it's is a very popular resort area for tourists -- tourists there in Wisconsin, and also for the locals.
Well, four U.S. soldiers in Iraq and one of their former comrades all stand accused of a horrible crime that happened south of Baghdad back in March. Another G.I. is charged with knowing about the brutal killing of an Iraqi family and the rape of an Iraqi teen, and not reporting it. Now we know the names of the accused.
Our senior Pentagon correspondent, Jamie McIntyre, has the latest -- Jamie.
JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT: Well, Kyra, it's a case that has sent shockwaves through Iraq and strained relations between the United States military and the Iraqi people.
Over the weekend, the U.S. military announced that five more soldiers would be charged in connection with the March 12 incident near Mahmoudiya, a town south of Baghdad, in which it is alleged that an Iraqi female was raped and murdered, and her family murdered on the same day.
Today, the U.S. military today announced the identities of those who are facing additional charges. They include Sergeant Paul Cortez, Specialist James Barker, Private 1st Class Jesse Spielman, Private 1st Class Bryan Howard. And then a fifth soldier, Sergeant Anthony Yribe, is not alleged to have taken part in the incident, but is said to have had tacit knowledge after the fact and failed to report it. He's charged with dereliction of duty. The other ones face a -- a number of charges that were outlined today by the top U.S. military spokesman in Iraq, Major General Bill Caldwell.
(BEGIN VIDEO CLIP)
MAJ. GEN. WILLIAM CALDWELL, U.S. ARMY SPOKESMAN, COALITION FORCES IN IRAQ: Conspiracy to commit rape and premeditated murder, conspiracy to obstruct justice, violation of a lawful general order, premeditated murder, rape, arson, house break-in, indecent acts, and obstruction of justice, all of which carry a maximum penalty of death, if found -- if found guilty in a court of law of all those offenses.
(END VIDEO CLIP)
MCINTYRE: Now, most of what we know that is alleged to have occurred on that day comes from an FBI affidavit that was filed in the case of Steven Green. He's a former Army private who was in that same unit, but was discharged in April for a personality disorder.
According to that affidavit, Green and four of the other soldiers went to this house of a young woman that they had spotted a week before the attack at a checkpoint. According to the court documents, they abandoned their checkpoint after they had been drinking, changed into clothes to conceal their identities, carried out the murder and rape, and then tried to cover it up by using an AK-47, and then throwing that AK-47 into a canal.
Green has pleaded not guilty to the charges. And he faces an arraignment in federal court next month -- Kyra.
PHILLIPS: All right, Jamie McIntyre, we will follow it. Appreciate it.
Mahmoudiya is just one of several military probes under way. Investigators are looking also at Haditha, where 24 Iraqi civilians were killed last November. Locals accuse U.S. Marines of going on a rampage after a roadside bombing -- no charges filed yet.
And, in April, an unarmed and disabled Iraqi war veteran was shot to death in Hamandiyah. That led to charges against seven U.S. Marines and a Navy corpsman. They are accused of premeditated murder, conspiracy and kidnapping.
There's also the shooting death of an unarmed Iraqi man near Ramadi in February. Two National Guard troops are facing charges, one accused of voluntary manslaughter, both accused of obstructing justice for allegedly planting a gun near the man's body.
Insurgents on the attack and new fears of civil war -- Iraq's president is warning that his nation is teetering on a dangerous edge.
CNN senior international correspondent Nic Robertson is in Baghdad.
(BEGIN VIDEOTAPE)
NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, the weekend had some of the bloodiest sectarian violence for many months, more than 70 people killed in what were essentially season attacks.
And those sectarian attacks appeared to continue Monday morning, a bomb going off and then mortars fired into a Shia market in a predominantly Shia neighborhood in Baghdad, five people killed, 46 wounded in that early-morning attack -- another big attack coming in the north of Iraq, in the town of Kirkuk, a truck bomb there driven close to a government building, then the explosives in it detonated -- three killed, 21 wounded.
There were other attacks north of Baghdad in the town of Baquba -- another attack south of Baghdad in the town of Mahmoudiya, another attack in the center of Baghdad in a crowded market area -- the total number of civilian casualties, civilians injured in all the different attacks so far this day is well over 100 -- the nature of those attacks, in many cases, not clear whether it's sectarian or aimed at government officials.
But the first attack in the day here in Baghdad appearing to be a continuation of a very bloody bout of sectarian violence over the weekend.
Nic Robertson, CNN, Baghdad.
(END VIDEOTAPE)
PHILLIPS: Well, Saddam Hussein is acting up again, as his trial wraps up in Baghdad. The former Iraqi dictator and most his co- defendants were not in court today. In a letter to the chief judge, Hussein said he will boycott the remainder of the proceedings, unless the court meets a list of demands -- among them, better security for defense lawyers and no interruptions of defense closing arguments.
The judge is threatening to drag Hussein and his co-defendants into court if they don't come voluntarily.
Let's get straight to Tony Harris, Kyra, who is working a developing story for us in the newsroom.
Tony, what do you have?
TONY HARRIS, CNN CORRESPONDENT: Good to talk to you, Kyra.
We continue to follow developments on the North Korea story -- and, as U.N. correspondent Richard Roth reported earlier on LIVE FROM, no vote today on a tough Security Council resolution condemning North Korea for last week's missile test. China has a delegation in Pyongyang. And Japan, which is pushing really hard for this resolution, has agreed to take kind of a wait-and-see approach to see what comes of these talks.
A development we did want to share with you today, Director of National Intelligence John Negroponte -- you saw him just a second ago -- was asked about North Korea during a speech today -- during a question-and-answer session that followed a speech before the U.S. Chamber of Commerce.
And here's what he had to say.
Got the tape?
(BEGIN VIDEO CLIP)
JOHN NEGROPONTE, NATIONAL INTELLIGENCE DIRECTOR: Yes, we know that North Korea has enough fissile material to construct nuclear weapons. We don't know for absolute certainty that they have nuclear weapons, although the intelligence community assesses that they do.
And, in addition, we know that they have considerable capabilities in the area of missile technology. And, of course, the tests that they conducted of this Nodong missile the other day was just one example.
So, North Korea is a particularly serious situation. And it's one of the reasons that such great importance is being attached at the moment to try to resume these six-party talks between ourselves and North and South Korea and Japan and China and Russia, to see if we can get a better handle on this situation.
(END VIDEO CLIP)
HARRIS: The director of national intelligence, John Negroponte -- so Kyra, no vote in the U.N. today.
White House spokesman Tony Snow was calling the Chinese mission to North Korea a promising development. We will keep following developments on this story for you -- Kyra.
PHILLIPS: All right, Tony, appreciate it.
HARRIS: Sure thing.
PHILLIPS: Coming up on LIVE FROM -- two space hardhats, tools in hand, hard at work -- our Miles O'Brien will fill us in on the second big space walk of Discovery's mission.
(COMMERCIAL BREAK)
PHILLIPS: Well, those spacewalking shuttle-nauts have called it a day, after several hours of fairly hard labor. The pair completed the second of three scheduled jaunts outside the shuttle Discovery.
To tell us how it went, Miles O'Brien, still in New York.
I don't know. We say that they completed a second day of fairly hard labor. I don't know if "fairly hard" is fair to say.
MILES O'BRIEN, CNN SPACE CORRESPONDENT: Well, you know, it depends on what you consider a hard day's work. I...
(LAUGHTER)
O'BRIEN: I guarantee you -- I guarantee you...
(LAUGHTER)
O'BRIEN: ... they don't look at it this way.
This has been a highlight day for Piers Sellers and Mike Fossum. There, you see live pictures. You are looking at the Quest docking -- or Quest airlock, as I should say.
PHILLIPS: Hmm.
O'BRIEN: And this is -- this little thing right here, that's where the astronauts come out. That's the astronaut egress and ingress place.
Now, this is where they store some of the gases and so forth that are used to supply the station all around the side there. They are back inside now, having completed a seven-hour space walk and doing everything on their to-do list, because, even in space, you must follow the honey-do list.
(LAUGHTER)
O'BRIEN: Take a look at this. This is a railroad in space, right down here. That's the tracks.
And on that track is a little cart -- not seen here -- that got itself in trouble. It was equipped with a cable reel and then a cutter if it got caught. The cutter cut the cables, even though it wasn't fouled up. Oh, and, by the way, you saw the shuttle there, of course.
Take a look at this. This is the -- this is the actual cut area right there. And, so, it was inoperative. And it's important to have this thing working properly, in order to build out the space station. So, the spacewalkers brought up a new cable reel and a new cutter -- good idea -- and successfully were able to carry it off and put it in place -- took a little bit of work, a little help from the robot arm there.
PHILLIPS: We can hear them talk.
O'BRIEN: There's...
PHILLIPS: Can we hear them talking, Miles?
O'BRIEN: Yes.
PHILLIPS: Are they talking to each other?
(CROSSTALK)
O'BRIEN: Yes. Yes.
(CROSSTALK)
O'BRIEN: Yes. Let's listen to what they're talking about right now.
UNIDENTIFIED MALE: That's locked in again.
O'BRIEN: It was kind of...
(CROSSTALK)
UNIDENTIFIED MALE: ... to come up.
O'BRIEN: They are talking -- they are doing their post -- let...
(CROSSTALK)
O'BRIEN: Take a look at these live pictures. Look at these -- these live pictures.
This is the -- this is inside the Quest airlock right now. And there you see, there's Mike Fossum after his hard day of work. Boy, he looks like he -- you know, he needs a little manhandling there from...
(LAUGHTER)
O'BRIEN: ... from pilot Mark Kelly...
(LAUGHTER)
O'BRIEN: ... and Pavel Vinogradov. There they are, strapping him in.
(CROSSTALK)
PHILLIPS: He is ready for a little Russian vodka about now.
O'BRIEN: Maybe so.
(LAUGHTER)
O'BRIEN: And that could be one of the unauthorized things on the space station, for all we know.
But don't -- I mean, doesn't he look like the Michelin Man there?
(LAUGHTER)
O'BRIEN: You have got to remember, these guys are -- they are filled up at high pressure. And, so, everything they do, they are resisting against the suit, this kind of, you know, inside-the-bubble thing.
And it -- it's -- it's mentally and physically exhausting, even seven hours there. There, you see Stephanie Wilson there, who is the second African-American woman to fly in space. And there you -- that's a -- some of their took kits. That's -- that's basically a -- a space tool belt there.
PHILLIPS: Now, how...
(CROSSTALK)
PHILLIPS: How...
O'BRIEN: Huh?
PHILLIPS: ... dangerous is this process, Miles? I mean, you're got to -- I mean, it's amazing to know every single intricate detail of this suit, right? I mean, is this -- do they have to be -- kind of take us through the process of what they are looking for and how they get him out of this and detach everything.
O'BRIEN: Well, it -- it's got two big pieces.
There's like the -- the -- the bottom piece is like here. It goes right up to about there, and it's about as high as some waders would be.
PHILLIPS: OK.
O'BRIEN: And then -- and then the top piece, you know, is this portion right here, and then, of course, the helmet and the gloves.
The -- by the way, that's one of the tool belt kind of operations that they use there. The gloves are the only thing that are custom. The rest is all kind of mix-and-match. You might have an a long -- or an X.L. top, and a long -- and it kind of snaps all together.
And -- and -- and that's what you want in space, the extravehicular mobility unit.
There comes Piers Sellers. You know how you can tell it's Piers?
PHILLIPS: The number?
(CROSSTALK)
O'BRIEN: No.
PHILLIPS: No.
O'BRIEN: No, look at the stripes. See the stripes?
PHILLIPS: OK. Yes, right there...
O'BRIEN: Mike...
PHILLIPS: ... on the leg, lower leg?
O'BRIEN: Mike -- yes. Mike Fossum doesn't have those stripes.
PHILLIPS: Wow.
O'BRIEN: Yes. Yes. That's -- you know. PHILLIPS: And then you got -- now, speaking of Sellers, I heard his family, they liked Coldplay. So he woke up to "Clocks." Is that right?
O'BRIEN: Yes. I mean, don't you...
PHILLIPS: That's what I -- I was...
(CROSSTALK)
O'BRIEN: I think it's good -- I think the astronauts...
(MUSIC)
O'BRIEN: There we go.
PHILLIPS: Here you go.
O'BRIEN: Isn't that the perfect...
PHILLIPS: A little Coldplay for you.
O'BRIEN: ... music for space? That is good music for space, right?
(LAUGHTER)
PHILLIPS: This is just -- just for us. And we are Coldplay fans, right, and just for the Sellers family here.
But I love that, that they have these morning wakeup calls with the music of choice. You have got to love it.
O'BRIEN: Yes. No, he's -- that -- that Piers, he is a pretty hip guy. You know, most of the astronauts are -- seem pretty stuck in the '80s. So...
(CROSSTALK)
(LAUGHTER)
PHILLIPS: He is definitely not stuck in the '80s, if...
O'BRIEN: No.
PHILLIPS: ... he's listening...
O'BRIEN: No.
PHILLIPS: ... to Coldplay.
O'BRIEN: Exactly.
PHILLIPS: What do you know about him? Have you had a chance to interview him or get to know him, Miles?
O'BRIEN: Yes.
PHILLIPS: I know you...
O'BRIEN: No, he...
PHILLIPS: Yes?
O'BRIEN: He's a great guy. He's -- he's a Brit who is now, you know, with -- with NASA, and has -- this is his second spaceflight. So, this is his -- let me guess -- not guess -- it's his fifth space walk, I believe.
And he's an interesting guy. He has got degrees in ecology and engineering. I think he has more degrees than I have socks, Kyra.
(LAUGHTER)
PHILLIPS: It doesn't surprise me.
O'BRIEN: I'm pretty sure. I'm pretty sure.
PHILLIPS: You know the old...
O'BRIEN: That isn't saying much, though.
PHILLIPS: You...
(LAUGHTER)
PHILLIPS: You know the old saying about, you know, you got the -- it's not -- it -- it's the brain surgeon and the astronauts that are supposed to be the smartest guys, right?
O'BRIEN: Well, they are...
PHILLIPS: And women.
O'BRIEN: ... smart people.
PHILLIPS: That's right.
O'BRIEN: They are.
PHILLIPS: All right, Miles, we're going to keep following it. I am getting the wrap. Why do you and I always get the wrap?
O'BRIEN: I -- you know, this -- there's a lot of history here. That's all I can say.
(LAUGHTER)
O'BRIEN: Yes, there is.
(LAUGHTER)
PHILLIPS: All right, Miles, thank you. O'BRIEN: All right.
PHILLIPS: Appreciate it.
Well, talk about an all-night party, but what are these folks so worked up about?
Coming up on LIVE FROM...
(LAUGHTER)
PHILLIPS: ... Italy has climbed to the top of the soccer world -- live pictures now as we go to break.
Viva, Italia.
Tony Harris and I are going to mix it up on this in a minute.
(COMMERCIAL BREAK)
PHILLIPS: All right. I'm trying to figure out how to say champion in Italian. I'm going to work on that.
Anyway...
(LAUGHTER)
PHILLIPS: ... champions team Italy whipping their country men and women into a World Cup frenzy with yesterday's stunning defeat of France.
CNN Rome bureau chief Alessio Vinci was in the thick of all the pandemonium.
(BEGIN VIDEOTAPE)
ALESSIO VINCI, CNN ROME BUREAU CHIEF (voice-over): This is what winning a World Cup is all about -- celebration, rapture and a good deal of energy. After 24 years, the World Cup returns to Italy, and this country is celebrating like never before.
UNIDENTIFIED MALE: The final was a great game. The French tried to beat us, and, in the end, we managed to break through on the penalties. So I, was a really good game.
VINCI: Penalty kicks is what the Italians wanted to avoid at all costs -- still fresh in their memories, the last final lost on penalties in 1994 against Brazil.
(CHEERING)
VINCI: This time, however, a different end -- the game brought Italy to a standstill. Theaters canceled shows. Policemen stopped worrying about public safety. And even a group of homeless managed to get ahold of a small television set. It felt as if everybody in this country was watching. It certainly felt that way after everybody took to the streets as the game ended.
Most of them celebrated by driving as only the Italians know how to do. We went along for a ride.
(on camera): Traffic is absolutely congested. Even the ambulances are having a hard time getting through. And they are certainly breaking any records of how many people can really fit into one car.
(SPEAKING ITALIAN) Eleven people in this car, 11!
(voice-over): They seem to never have enough of it. Soccer is a real passion here.
Italy has now won the World Cup four times. Only Brazil has done better, with five trophies. It was a victory Italian football badly needed, to restore dignity to a sport badly tainted by a match-fixing scandal involving some of the country's best-known teams. A trial is under way, and judges are expected to hand down their verdicts almost as soon as the street cleanup ends.
But this was a night set aside to celebrate.
(on camera): This is just the beginning. On Monday night, up to a million people are expected here to welcome their heroes.
Alessio Vinci, CNN, reporting from Rome.
(END VIDEOTAPE)
(LAUGHTER)
PHILLIPS: OK, we heard nothing Alessio Vinci said, but it's OK.
(LAUGHTER)
PHILLIPS: It looked really good.
Well, for the French, losing to Italy wasn't the only disappointment. The low point was this. Retiring star player and national hero -- uh-oh. I should have practiced this one. Zinedine Zidane? Did I say it right?
It was the headbutting -- say it again for me -- Zinedine Zidane. I got to get up on my soccer players. Well, the headbutting, remember that? Here he goes again. Here it goes. Well, officials promptly red-carded him, ending his career on a very glorious note.
Despite the foul, FIFA -- Am I saying that right, too? -- the governing body of the World Cup soccer awarded Zidane the Golden Ball award for -- this morning for the tournament's best player.
Got to get up on my soccer-speak.
Well, live celebrations in Rome right now.
Tony Harris, those Italians never sleep. They are like New Yorkers. They just go through -- all through the night.
HARRIS: Oh, Kyra, did you -- did you watch 30 seconds of World Cup soccer this World Cup season?
(LAUGHTER)
PHILLIPS: I -- I will...
(LAUGHTER)
PHILLIPS: I will admit, I watched the Iran -- I watched -- every time the Iranians played, OK?
HARRIS: Did you? OK, gotcha. And I understand why, sure.
PHILLIPS: Because of -- because of, you know, family connections over there.
HARRIS: Yes, absolutely. Yes, the big man, sure. Sure.
PHILLIPS: Right? Got to -- got to do that, got to be supportive.
(LAUGHTER)
HARRIS: Oh, that's good.
PHILLIPS: All right?
And then, you know, it's -- it's -- it's -- the Iranians, the Brazilians and the Italians...
HARRIS: Yes.
PHILLIPS: ... they are all gorgeous, so you have to watch.
(LAUGHTER)
HARRIS: So, here's what we are...
(LAUGHTER)
HARRIS: Here's what we're looking at Kyra. And this is -- obviously, I mean, this is part of a celebration that engulfed Alessio. Did we understand a word of what he was trying to say?
PHILLIPS: No, nothing at all. But he looked great.
(CROSSTALK)
PHILLIPS: He looked like he was having a great time.
HARRIS: So, let's understand this. In -- in -- in television terms, this was about the scene, the shot. It was -- it had nothing to do with what he was saying, right?
PHILLIPS: Right. Exactly.
HARRIS: Oh.
(LAUGHTER)
HARRIS: OK.
(LAUGHTER)
HARRIS: So, this is the scene now in Rome.
(LAUGHTER)
HARRIS: This is Circus Maximus. I don't know much more about Circus Maximus than that, than maybe that's where Russell Crowe did his thing in "Gladiator." I need to get out of Atlanta a little more.
PHILLIPS: Yes. That's -- you know what? I have been there one time.
HARRIS: OK?
PHILLIPS: And I was just trying to think, OK, did I make it to that spot? It
HARRIS: See?
PHILLIPS: It looks a little familiar.
HARRIS: It's beautiful, though, isn't it?
PHILLIPS: Yes, it is.
HARRIS: And, so, what we are awaiting for is the actual arrival of the team.
And I am sort of assuming, by all the fireworks that we're seeing, kind of the light show that is going on, that perhaps the team has arrived, and will be making its way to the stage, the big podium up there, where I understand that each member of the team will be introduced to wild applause.
You see the flags, fireworks in the crowd. That's not the safest thing to do, but OK. We understand. So, think of a Super Bowl win for a city. And we know what those scenes look like, Kyra.
PHILLIPS: Oh, yes, live in Green Bay, Wisconsin.
HARRIS: Right.
PHILLIPS: And after a Super Bowl win, it's absolutely insane.
HARRIS: So, magnify that, what, a gazillion times, and you're talking about a whole country celebrating?
PHILLIPS: And -- and you know, I -- I -- I have been lucky enough to go to -- to Italy quite a bit, and -- and a lot of friends from Italy. And I tell you what, they sleep, drink, eat soccer.
HARRIS: Yes.
PHILLIPS: That is the sport of that country.
HARRIS: Well, I will tell you this.
I -- I just got back recently, took my whole family to Mexico, and watched a couple of World Cup games with my son, who is now just a soccer-head...
(LAUGHTER)
HARRIS: ... loving it now, and, actually, for the first time started to appreciate the game, could understand it.
But, for me, of course, I had to draw parallels to a sport I understood better. And I -- and I -- and I sort of drew parallels to basketball, pick-and-roll and the weave and those sorts of things, and I could understand the game better.
PHILLIPS: Sure. The footwork, you know...
HARRIS: The...
PHILLIPS: ... it's amazing.
HARRIS: OK. And -- but there's still a couple things I -- I just don't understand. How do you decide a game that's nil-nil, 1-1, with penalty kicks? Don't understand that. But that's what they did.
(LAUGHTER)
HARRIS: And the -- and the title game, this was a game, 1-1. It was decided by penalty kicks. And, but -- but, by all accounts, it was a great soccer game.
PHILLIPS: It was, a lot of action.
HARRIS: Yes.
PHILLIPS: I -- I caught about an -- an hour yesterday.
All right. I'm being told we got to move on.
HARRIS: We got to...
(CROSSTALK)
PHILLIPS: But this will not be the end of it. We will continue to rage on world...
HARRIS: You and Miles, you and me, right?
PHILLIPS: There you go. Exactly.
HARRIS: We get the wrap, right.
PHILLIPS: We don't...
(LAUGHTER)
PHILLIPS: We always get the wrap.
(LAUGHTER)
PHILLIPS: That's all right. Hey, it's a great time in Italy. It's a great time for soccer fans.
HARRIS: Hmm.
PHILLIPS: Thanks, Tony.
HARRIS: Sure thing.
PHILLIPS: Well, we all get bombarded by those offers in the mail for pre-approved credit cards, right? Well, consumer advocates say that's one reason why Americans are saddled with so much debt.
Susan Lisovicz, live from the New York Stock Exchange, with more.
Susan, I know you are a big sports fan. You had to have been watching a little World Cup.
SUSAN LISOVICZ, CNN CORRESPONDENT: I sure did. And you know, I was just talking to Andy, my producer and we were saying New York state is No. 1, of all the 50 states in terms of Italian-Americans in the U.S., and New Jersey where I live is No. 2. So between the two of us, we saw all these impromptu parades with cars, convertibles, SUVs, all draped with the Italian flag, honking their horns, celebrating, so we've seen the celebration over here, too.
PHILLIPS: I can just imagine, probably the Italian side of town. And Boston, I'm going through my head, of all the areas right in the United States.
LISOVICZ: There's plenty of them out here.
PHILLIPS: All right my hear, what do we have going on? Tell us more about this credit card debt.
LISOVICZ: Now we've got to be serious, unfortunately, Kyra. Consumer groups are blasting a new report on credit cards by the Federal Reserve. The Fed reports on little evidence that card issuers are indiscriminately offering credit to consumers. But some groups, such as Consumer Action, say the Fed bends over backwards for the banking industry. They point to data showing that the amount Americans charged on credit cards has more than doubled in a recent 10-year period and the amount of debt outstanding on those charges has nearly tripled.
They also say that credit card debt affects lower and moderate income consumers much more than higher income families. In recent years, many credit card issuers have raised these and made it harder for consumers to avoid them. And that can be a real monkey on the back when you've got those revolving charges, Kyra.
PHILLIPS: All right, well how is the Fed responding to the criticism?
LISOVICZ: Well a spokesperson for the Fed, Kyra, says that the Fed has nothing to add and that the report speaks for itself. The study noted that even though 71 percent of households had credit cards in 2004, the portion of household income spent on consumer debt has risen only modestly. Congress had asked for the reports to gauge whether banks are offering credit irresponsibly and encouraging consumers to pile on debt and whether further regulation of the industry is needed. Some critics say the Feds report could encourage legislators efforts to curb abuse use of credit card practices. Kyra?
PHILLIPS: All right, what's happening on Wall Street?
(MARKET REPORT)
(COMMERCIAL BREAK)
PHILLIPS: Well a resort community shattered by a string of explosions. Tony Harris is working the developing story for us. Tony, what do we know?
TONY HARRIS, CNN CORRESPONDENT: Yes, Kyra. As we continue to follow those developments out of that collapse and explosion in New York City, a similar story as you just mentioned was actually unfolding earlier in the morning in Ellison Bay, Wisconsin, that's very near as you mentioned, Green Bay, Wisconsin.
And we want to take you -- give you a look at some of these pictures here of what happened in that resort town of Ellison Bay. We understand a series of explosions heavily damaged a couple of buildings, a grocery store, a cottage and a maintenance building. We will get that confirmed up in just a second because Chris Hecht is on the line with us. He is the fire chief for Sister Bay and Liberty Grove and his department also covers Ellison Bay. And Chief Hecht, thanks for your time.
CHRIS HECHT, FIRE CHIEF, SISTER BAY AND LIBERTY GROVE: No problem, thank you sir.
HARRIS: Give us -- set the scene for us when your fire department arrived at this location.
HECHT: At approximately 2:35 this morning, we were dispatched to a reported explosion in Ellison Bay, which is as you say a small resort community in Nothenberg County. While we were responding, we were getting secondary reports of additional explosions or potential other buildings involved. When we arrived, we found three buildings heavily damaged by explosions, one of the buildings heavily involved in fire.
HARRIS: And we understand the latest reporting is that two people were actually killed?
HECHT: That is correct. We have two confirmed fatalities in one of the building, that is correct.
HARRIS: Would that have been in the cottage we mentioned earlier?
HECHT: That is correct, it was in the cottage or duplex type building as part of one of the local resorts.
HARRIS: OK and one of the local officials is quoted as saying that the community is absolutely devastated by this event, we certainly understand that. But pinpoint it for us. Tell us why this community is taking this news so hard?
HECHT: For several reasons. One, we're a very small community. You know, the buildings that were affected and have been affected are buildings that have been in this community forever. You know, the only grocery store in the community, the anchor store. The duplex is part of a resort that has been here for many years. And there's just a real sense of community not only within the buildings that are here all the time and the people that are here all the time, but with the people that keep coming here year after year to have to go through this.
HARRIS: Can I assume that a lot of those people in that area -- were the people who were killed known to others in this community?
HECHT: At this point I don't know that. I can't comment as to whether the people that were killed knew people outside of the resort community.
HARRIS: How many of the people were injured, hurt in the explosion?
HECHT: There were seven people that were transported by emergency services to the hospital. Four of them were subsequently transported onto a higher-level care facility in Green Bay and the rest of them were released.
HARRIS: And chief, one last question, there were some reports that propane may have been behind this, can you confirm?
HECHT: At this point I cannot confirm that. We have multiple agencies on site working to try and evaluate cause and origin. It would be premature for me to speculate as to what the cause was. As soon as we can pinpoint it, we will get that information out though.
HARRIS: OK Chief Hecht, we appreciate it. That is fire chief Chris Hecht, for Sister Bay, Liberty Grove and also, Kyra, responsible for Ellison Bay, Wisconsin.
PHILLIPS: Thanks, Tony, appreciate it. We are learning more about the alleged plot to blow up train tunnels in New York. Investigators say they found maps and plans on the computer of a Lebanese man with alleged ties to al Qaeda. Thirty-one-year-old Assem Hammoud also purportedly toyed with the idea of setting wild fires in California and visited that state six years ago. Hammoud has been in custody in Lebanon since April. Two other men also are in custody in unnamed countries. Five suspects are still being sought.
The threat of attack has become a way of life in New York. One year ago, in reaction to the mass transit bombings in London, police started random searches of backpacks, bags and briefcases in the New York subways. A judge allowed it over the objections of the New York Civil Liberties Union. Since then there have been five search-related arrests, not for terrorism, but for drugs, disorderly conduct and other minor offenses.
United we stand. The U.S. wants the world to speak with a unified voice about North Korea's nuclear program, but since the world can't agree on that voice, a vote on possible sanctions is delayed at the United Nations.
CNN's Richard Roth has been -- has more now on seeking resolution -- Richard.
RICHARD ROTH, CNN SR. U.N. CORRESPONDENT: Kyra, the U.N. Security Council is closely watching a six-day visit to North Korea by a delegation from China, a senior delegation observing and honoring 45 years of friendship. But will that dialogue there be enough to hold off a Security Council resolution? That is deadlocked here at the Security Council. There was a round of talks this morning in New York, first at the United States mission to the U.N., and then at the French mission.
Afterwards, the council members, those behind this resolution, decided wait with this resolution, not put to it to a vote, letting the Chinese take the lead in these dialogue talks in North Korea.
(BEGIN VIDEO CLIP)
JOHN BOLTON, U.N. AMBASSADOR TO U.N.: The co-sponsors of the resolution have met this morning and we've agreed that we will not press for a vote on the resolution today. We think it's important to keep the focus on Pyongyang, which, after all, is the source of this problem, and to provide maximum support for and leverage on the Chinese mission to Pyongyang. So from that perspective, we'll suspend -- we won't press for a vote.
(END VIDEO CLIP)
ROTH: It appears that if North Korea comes back and agrees to put another moratorium -- they've already promised on the missile launches and also come back to those six-country talks -- maybe this resolution will be put off to the side. China, Kyra, indicated that it might be able to back some form of resolution, but today it said it's still opposed, in effect, to sanctions -- Kyra.
PHILLIPS: We'll follow it. Richard Roth, thanks so much.
Hair color, license plate numbers, inappropriate comments. Find out where police discovered detailed records of hundreds of women, and where they were allegedly watched. That's coming up on LIVE FROM.
(COMMERCIAL BREAK)
PHILLIPS: Malls are great places for people watching, and police in Oregon say a convicted sex offender did just that on a frightening scale. Timothy Cole is due in court today, where he may get released from jail.
Reporter Keely Chalmers of CNN affiliate KGW has the details.
(BEGIN VIDEOTAPE)
KEELY CHALMERS, KGW REPORTER (voice-over): At Washington Square Mall's Cheesecake Factory, it was business as usual this weekend, but come closing time employees make sure they don't leave alone.
KRISTINE HILT, BARTENDER: Usually I'll have one other person walk out with me all the time. Before I wasn't so good about it, and now it's a priority.
MARK HUNTER, RESTAURANT GENERAL MANAGER: You know, don't walk out by yourself, make sure that you've got somebody with you and there's always somebody that can go with you.
CHALMERS: This weekend, mall employees learned a convicted sex offender had been staking out the mall, stalking hundreds of women. On Friday, police arrested 34-year-old Timothy Cole after a routine traffic stop near the West Linn apartment complex. Inside Cole's car, police found pages of notes with detailed descriptions of the women: their hair color, license plate numbers, as well as inappropriate comments.
Police say the notes came from Cole watching women come out of both Washington Square Mall and the Clackamus (ph) Town Center. They believe Cole stalked as many as 275 women.
SGT. NEIL HENNELLY, WEST LINN, OREGON, POLICE: Well, we've been getting a lot of calls from concerned parents and boyfriends about their daughters and loved ones at the mall.
CHALMERS: Sergeant Neil Hennelly says detectives are now contacting every woman on Cole's list.
HENNELLY: We're telling people we've identified the person we've -- your name has appeared on this paperwork. We were trying to find out if he's ever contacted them at all.
CHALMERS: So far, police don't believe Cole ever contacted the woman he watched, but they want to make sure he never does. Currently, Cole is in jail, arrested on one count of stalking and for failing to register as a sex offender. In 1999, he was convicted of misdemeanor sex abuse, but police say those charges alone may not be enough to keep him behind bars.
(END VIDEOTAPE) PHILLIPS: Thanks again to Keely Chalmers for our affiliate KGW.
Well, all he had was a red paper clip, a Web site and a mission. Wait until you see what this blogger has one year later. LIVE FROM catches up with him right after the break.
(COMMERCIAL BREAK)
PHILLIPS: Well, take one paper clip and one great idea, sprinkle in some buzz, and wait a year. That turned out to be a great recipe for a Canadian blogger who was determined to start small -- really small -- and trade up, again and again and again.
Let's start at the beginning.
(BEGIN VIDEOTAPE)
PHILLIPS (voice-over): There was Kyle MacDonald with a red paper clip. It sat on his desk and that could have been it. But he traded the clip to get a pen that was shaped like a fish. Then he thought once again. He traded the pen to get a doorknob. There was no door attached but he wasn't a snob. A pen for a knob is a good trade indeed. It led to the question, where would this lead? He traded the clip to get the pen, he traded the pen to get the knob. Now he traded the knob to get a stove, the kind you might use in a picnic grove. From a clip to a stove is quite a big move, but Kyle MacDonald had something to prove. He traded the clip to get the pen.
He traded the pen to get the knob. He traded the knob to get the stove, the kind you might use in a picnic grove. Now he traded the stove for something much greater, a powerful trade for a generator. Since he had the power, he could see the light and wouldn't give up without a fight. He traded the clip to get the pen. He traded pen to get the knob. He traded the knob to get the stove. He traded the stove for something much greater, a powerful trade for the generator.
Now he traded the power for a neon sign, also a beer keg which he thought was fine. He's using the keg to arrange a new deal, a beer bash for a snowmobile. A snowmobile from a paper clip, a trail of trades that's a long, strange trip. Where will it lead? If his hopes aren't doused, Kyle MacDonald says he wants a house.
(END VIDEOTAPE)
PHILLIPS: Well, we are skipping a few trades for a moment to let you know that Kyle MacDonald has achieved his goal. You just saw the picture, he is getting a house. MacDonald's new address, Kipling, Saskatchewan, a place he's never been to. He joins me now from Montreal. Now Kyle, the last time we saw you, you had the snowmobile. Tell us about the trades that we missed.
KYLE MACDONALD, RED PAPER CLIP TRADER: I think there's been six or seven trades. I traded the snowmobile for a trick to Yak, British Columbia in the Rocky Mountains. And I traded the trip to Yak for a cube van, which is like a big box truck or a moving van. I Traded the moving van for a recording contract at a record studio. I traded that for a year of rent in Phoenix .
I traded one year of rent in a duplex in Phoenix for an afternoon with Alice Cooper, which I traded an afternoon with Alice Cooper for a kiss snow globe, you know those things you shake up. Everyone freaked out and thought I had jumped the shark and lost it, but then I traded that kiss snow globe for a paid, speaking credited role in a movie being put together by Corbin Bernsen, which I just traded with the town of Kipling, Saskatchewan for 503 Main Street which is a three bedroom house.
PHILLIPS: Oh my gosh, alright so let me back track for a minute. First of all, the recording contract, do you sing?
MACDONALD: I don't. That's the reason I traded it. I always said I was going to trade to the house, but Jody Gannet from Phoenix, Arizona said I have a vacant half of a duplex and I would love to get that recording contract. She's recording her album as we speak.
PHILLIPS: We will have to follow up on that and see how she does. An afternoon with Alice Cooper. I saw the picture with the big paper clip, with you and Alice. It looks like you at least got some time with him?
MACDONALD: I spent a morning and an evening but I didn't use up the afternoon. I was in Fargo two months ago and I actually got to spend time with him. He's a really good guy. He isn't in the rock and roll hall of fame, but he will be soon and I have started a petition to that effect.
PHILLIPS: Knowing you, it will now happen. Because you are leading the cause. Alright, a Kiss snow globe? I had to seriously go back and say to the producer Kiss as in the band, right? I had no idea this was such a hot commodity.
MACDONALD: To me or you, probably not, but to Corbin Bernsen, who is arguably the world's the largest snow globe collector, he has 6,500 snow globes. This was a hot commodity, and people are sending him snow globes now from all over the world. He's sending pictures of him and I with Kiss snow globe, autographed, as a collector's item. So if you want to join the Corbin Bernsen Kiss snow globe army go to my Web site and it's pretty easy to find out how.
PHILLIPS: Oh my gosh, you're taking all kinds of causes. Now Corbin Bernsen, he did "L.A. Law," right?
MACDONALD: Yes, "L.A. Law," "Major League," apparently he was in "The Dentist," which is a scary film. I haven't seen it but people are saying don't watch it, or do watch it.
PHILLIPS: My guess is he might be doing a movie about your whole paper clip ordeal. That might be the next thing. So finally, then, you got the house in Kipling, have you seen the house? Are you going to move in? Is this it? Is this the end of the road for you?
MACDONALD: I have seen pictures of the house, sort of like on that teaser clip you just did. We are moving in on Labor Day weekend. We are having Saskatchewan's biggest housewarming party ever. Anyone in the world is invited. OneRedPaperClip.com is the place to find out all the info. Corbin Bernsen is going to be there and the town is actually going to hold sort of a pop idol style auditions for the movie role and those are open to anyone as well, so if anyone wants a role in Corbin Bernsen's movie, the auditions take place Kipling, Saskatchewan, Labor Day weekend.
PHILLIPS: Kyle Macdonald, next he'll be an agent for all the stars. Kyle, it's always fun talking to you. Congratulations, keep us posted on your next adventure.
MACDONALD: Will do. Thank you very much.
PHILLIPS: Alright Kyle. Time now to check in with CNN's Wolf Blitzer. He's standing by in THE SITUATION ROOM to tell us what's coming up at the top of the hour. Maybe Kyle could fill in one day for you, Wolf.
WOLF BLITZER, CNN ANCHOR: Maybe he could trade up for that.
PHILLIPS: That's a trade up, absolutely.
BLITZER: Thank you Kyra. Negotiating with North Korea. The United States and China are two of the biggest players on the world stage, so why can't the two countries get on the same page when it comes to Kim Jong-il.
And is this the end of so-called "Cowboy Diplomacy" for the Bush administration? We're live at the White House, plus the race for '08, will Hillary Clinton be the Democratic nominee or will it be someone still in the background. We will take a closer look at the strategy for those Democrats trying to brand themselves as the un-Hillary candidate. All that coming up right at top of the hour.
PHILLIPS: Sounds good, thanks Wolf. Well "The Closing Bell" and all the day's action on Wall Street straight ahead, don't go away.
(COMMERCIAL BREAK)
(MARKET REPORT)
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
