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CNN Live Today

American Economy Growing; Controversy Over Eminent Domain Ruling; "Mr. Moviefone"

Aired August 05, 2005 - 10:30   ET

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

DARYN KAGAN, CNN ANCHOR: In Orlando, Florida, an investigation is under way into death of a 12-year-old at Walt Disney World's Typhoon Lagoon Water Park. Lifeguards had noticed the girl lying down by a shallow pool, but she told them she was fine. She then stood up and passed out. Lifeguards performed CPR after she stopped breathing, but she was pronounced dead at the hospital.
Supreme Court Justice William Rehnquist is back home today after being taken to the hospital with a fever. It was his second emergency visit to the hospital in a month. The 80-year-old is suffering from thyroid cancer and, despite much speculation, has said he will remain on the high court.

The American economy surprised the experts by putting more people back to work and paying them more. The Labor Department reports that employers hired 207,000 new people in July. Unemployment held steady at a nearly three-year low of 5 percent and average hourly wages are up six cents.

Coming now to talk to us about the economy and more, Treasury Secretary John Snow. Mr. Secretary, good morning.

JOHN SNOW, U.S. TREASURY SECRETARY: Hey, good morning, Daryn. Good to be with you.

KAGAN: Well, it's good to have you here, sir. The analysts were predicting about 183,000. The number coming out, 207,000. I'm sure you're encouraged by those numbers?

SNOW: Well, those are good numbers, and they indicate the American economy continues to be on a good, strong path. I was particularly pleased to see that behind the numbers, when you look at it, this is a broad-based job recovery. Teenagers benefited, minorities benefited, with employment among blacks and Hispanics rising and wages rising. More Americans working than any time in our history. So the American economy is on a good, strong upward path.

KAGAN: Yes, let's talk about that average worker that's out there. Now as we said, hourly wages are up in July. But over the last 12 months, only up 2.7 percent. What do you say the average person out there -- has the job, but is afraid that they're not going to be able to keep up with inflation?

SNOW: Well, I think we'll continue to see wages rise. And real wages will start to rise, as well. And the key thing here is that the economy continues to expand, as it has been doing, well above trend line. And when it expands, as it has been, at a good clip, it creates jobs. And that will eventually lead to, as it is now -- beginning to lead to, higher wages. More people are working and have more money in their pockets than any time in our history, and that's the real story.

KAGAN: Let's talk about a different type of expansion story here, one that I think got a lot of people's attention in recent weeks. This is talking about CNOOC, the Chinese company that had great backing from the Chinese government, making a bid for Unocal, this California oil company. That deal has now fallen apart. It had a lot of people very jittery and scared about the idea, the Chinese having ownership in an American oil company. Are you disappointed that that deal fell through, sir?

SNOW: Well, let me say I don't comment on specific transactions. But insofar as any transaction poses a security threat to the United States, we have in place a process to make sure that the security interests of the United States are well and fully defended.

KAGAN: Yet -- not a specific deal here, but does the United States need a policy. Because this is not going to be the last time that we face this situation, whether it's the Chinese or another government that wants to come in and buy a piece of the country, especially something as important as an oil company?

SNOW: Well, we have a process, as I say, that on a case-by-case basis, carefully reviews, carefully scrutinizes, any transaction that could pose any risk to the security interests of the United States. That's a process that the Treasury Department chairs, it's a process that has worked well, and it's a process that we'll continue to follow.

KAGAN: And one final question. Any concern that American manufacturers will face any kind of retaliation for this CNOOC deal going bad?

SNOW: Well, the important thing here is that we build a constructive relationship with China and with our other trading partners. We're the most open economy in the world. It's important that other large economies around the world, other trading partners, open their economies up and play by the rules. But that's the American policy: Open trade, but insisting that other people play by the rules, as well. I don't anticipate any direct effects here, because, after all, CNOOC took the decision to withdraw their bid on their own.

KAGAN: That they did, after much pressure from here in the U.S. Treasury Secretary John Snow. Mr. Secretary, thank you for your time.

SNOW: Always good to be with you, thanks.

KAGAN: We appreciate it. Thank you, sir.

Well, we're going to talk about eminent domain now. There is a growing controversy over a Supreme Court ruling that expands the government's power to seize your home.

Our Jason Carroll looks at how the decision is changing lives and laws nationwide.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN CORRESPONDENT, (voice-over): Josephine and Carmine Vendetti lived in their home in Long Branch, New Jersey, nearly half a century.

(on camera): You built this house?

CARMINE VENDETTI: We built it, right.

CARROLL: Forty-five years ago?

CARMINE VENDETTI: Right.

CARROLL (voice-over): Not only did they build it and pay it off, they hope to retire here. But now the city wants to take it all away.

JOSEPHINE VENDETTI, HOMEOWNER: Stressful. Angry. To think that you own something free and clear and now it's costing us money to get a lawyer. We don't know where we're going to live. We're hanging. I mean we don't know what to do.

CARROLL: The Vendettis' home is one of about 30 standing in the way of high-priced condos starting at $700,000 the city wants to build as part of a redevelopment project. The city plans to use the power of eminent domain to seize their property.

J. VENDETTI: This is your house. You know, there's so more mortgage, nothing, and then they're just going to come and take it. Now, you've got to go get a mortgage.

ADAM SCHNEIDER, MAYOR, LONG BRANCH: I think they've got to come to the table and negotiate. If they choose not to, I think it's going to be to their own detriment.

CARROLL: Long Branch's mayor says the project is creating a beautiful, thriving community, where run-down beachfront property once stood. And he says homeowners like the Vendettis were offered a fair price for their home, $400,000. He's confident they'll have to go.

SCHNEIDER: Look, the law permits us to do what we were doing.

CARROLL: But maybe not for long. New Jersey is one of more than a dozen states in which proposed legislation would limit the use of eminent domain for commercial uses. Under a recent U.S. appeals court decision saying the Constitution allows states to seize homes. (INAUDIBLE).

Alabama's governor was outraged and has already signed the first state property protection law.

UNIDENTIFIED MALE: The ruling is resonated for the millions of Americans because it hits literally at home.

CARROLL: Federal legislation that would limit eminent domain has also been introduced.

UNIDENTIFIED MALE: We will be working together, to accomplish our goal, which is to rein back in this broad interpretation of the Fifth Amendment of the constitution, in a way that protects all of us from the awesome power of government to take private property for private uses.

CARROLL: Property rights advocates expect more legislation to follow.

UNIDENTIFIED FEMALE: States are going to have to change the law because the public outrage against this is so overwhelming. And it's nonpartisan. Everybody hates this. And everyone thinks that it needs to be changed.

CARROLL: Not everyone. Not those in Long Branch who are enjoying their breech front.

MAURA LUCARELLI, RESIDENT: It has to be developed. It looks gorgeous. It's bringing income to the community. So, I feel bad where are they going to go? It's very expensive around here. But it's part of life. I mean ...

UNIDENTIFIED FEMALE: Yeah. There's, like, no win-win situation.

CARROLL: The Vendettis know that all too well.

(on camera): So what do you do? You then just keep fighting then? Is that what you do?

J. VENDETTI: Sure.

CARROLL: For how long?

J. VENDETTI: Until they take -- until they drag us out.

CARROLL: They're hoping that day never comes. But they're ready if it does.

Jason Carroll, CNN, Long Branch, New Jersey.

(END VIDEOTAPE)

KAGAN: Another former WorldCom executive is going to prison. This latest sentencing concerns former WorldCom accounting executive Betty Vinson. She was sentenced today to five months in prison and five months of house arrest. She pleaded guilty to fraud back in 2002 and then she went ahead and helped the government build its case against former CEO Bernie Ebbers, who was sentenced earlier to 25 years. Another former WorldCom executive, Troy Norman, will be sentenced later today by the same judge who sentenced Betty Vinson earlier today.

Well, she thought it was in park, but as you can see from this, that was not the case. The tale of a runaway truck is just ahead. And they amused staying one step ahead of police in Hazzard County 25 years ago, but are Bo and Luke Duke still cool today? Mr. Moviefone weighing in on new flick in a few minutes. Stay with us.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

KAGAN: Let's go ahead and look at other stories making news coast-to-coast. First to Dallas, Texas. Here's a cliffhanger for you, literally. Truck accident. Yesterday afternoon, the driver of this truck lost control on I-35 and blasted through a guardrail over the concrete wall. The cab was left dangling off the side of the overpass. The driver, believe it or not, was not badly hurt.

Buckle up for another wild ride. This is from Clinton Township, Michigan. Apparently a woman delivering morning papers thought she put the truck in park. Ah, no. When she stepped out, it lunged into reverse and spun isn't circles. Finally brought it a stop without incident.

And in Northern California, an illegal cash crop from the Sequoia National Forest. Park patrols and sheriff's deputies found about 34,000 marijuana plants, thriving in the wilderness. They estimate the haul to be worth about $136 million in street value.

Well, you first saw them here a few weeks ago. Today the penguins finally march on the box office. Mr. Moviefone's review, when we come back.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

UNIDENTIFIED ACTOR: Not today! Not with you driving the getaway car!

UNIDENTIFIED ACTOR: What the hell's he using?

UNIDENTIFIED ACTOR: You don't want it know.

UNIDENTIFIED ACTOR: Dadgammit, he just assassinated the tree.

(END VIDEO CLIP)

KAGAN: Well, it's "The Dukes of Hazard." Who knew there were scenes in the movie besides Jessica Simpson in a bikini and little short shorts? I didn't. Once again, Hollywood digging deep into the crypt of television's faded past and resurrecting enough material to make a movie. Like Owen Wilson and Ben Stiller did with Starsky & Hutch, Seann William Scott and Johnny Knoxville have teamed up for "The Dukes of Hazard."

Russ Leatherman, our enlightened man of the darkened cinema has some thoughts on that. Do you have some thoughts on Jessica Simpson in that bikini, with that car-washing scene thing that she does? RUSS LEATHERMAN, "MR. MOVIEFONE": I have no thoughts on that whatsoever, Daryn. I need to go home this afternoon, OK?

KAGAN: Besides that, is there anything worthwhile seeing in this movie?

LEATHERMAN: Well, you know, I was on vacation last week, and I'm sorry I missed you, and thank goodness I rushed back to see "The Dukes of Hazard." The answer is no. This is really a totally lame remake. You do have Johnny Knoxville, who I love, and I love his "Jackass" show. I think that's very funny. You have Seann William Scott. But it's really all about Jessica Simpson. The publicity is all about her. That's really all you see, and frankly, she's not in the movie very much. If you go to AOL and moviefone.com and watch "The Boots are Made for Walking" video, you're going to see more of her there than you really are in this movie.

KAGAN: Maybe that's a good thing? You know, it's her first big acting thing?

LEATHERMAN: Well, yes, they say this is going to be the start of a huge acting career! Not so much.

KAGAN: Oh, dear.

LEATHERMAN: Here's the problem, Daryn. It's an action comedy. There's not a lot of action, very little comedy. In fact, here, I'm going to give you the best joke of the movie, OK?

KAGAN: All right.

LEATHERMAN: Here's the best joke -- what happens too a politician on Viagra?

KAGAN: Do I want to know the punchline?

LEATHERMAN: They get taller.

KAGAN: They get taller.

LEATHERMAN: That's it! That's the best joke of the movie!

KAGAN: OK.

LEATHERMAN: So if that's the best, then I suggest you take your ten bucks, probably put it somewhere else.

KAGAN: OK. Let's talk documentaries. They are hot, they continue to be hot. And now there's a bunch of penguins marching across America?

LEATHERMAN: You know what. Here's the deal. It's a great little family movie. It is a documentary, "March of the Penguins," and it's a story of these penguins who march 70 miles back and forth to find a mate, to have children. I got to tell you, you can tell we're light in the family movies this summer if this is being touted as, like, the best movie of the summer. Because, really, it is more like a Discovery Channel documentary.

But it's beautiful to watch. It's really quite an amazing story. I enjoyed it a lot. I don't suggest going to this movie sleepy, because it's hot outside, and you go into this cool theater, and you have Morgan Freeman sort of narrating you to sleep. But for the parts that I was awake, I really liked this movie.

KAGAN: You know, we had real penguins here a few weeks ago, promoting this movie, you know.

LEATHERMAN: Well, I tell you, they're amazing. And you wonder how they got some of the footage they got. But it is a documentary- style movie. You could probably see it on DVD and TV not too long, if you don't want to pay the $10. But for what it is, I think it's pretty good. You know, if you want it see some good movies, be sure you go check out "Hustle and Flow." Don't miss "Murder Ball." You got "Wedding Crashers" in theaters. We are in the dog days of summer, but there are some good movies still out there, so go check those out.

KAGAN: Thanks so much. Quick inside behind-the-scenes story? The handler from Marine Land told me put the penguin on the floor before we go on the air, because he was afraid the penguin was going to, you know...

LEATHERMAN: Wow. That's a good story, Daryn.

KAGAN: There you go. Better than "Dukes of Hazzard."

LEATHERMAN: I'll talk to you later.

KAGAN: Thank you. Russ Leatherman, Mr. Moviefone.

You can keep an eye on entertainment 24/7 by pointing your Internet browser to CNN.com/entertainment. Among the highlights you'll find there, the secret life of Hugh Hefner. Oh my.

All right, on that note, we'll take a break. We're back after this. (COMMERCIAL BREAK)

KAGAN: I want to show you, we have cameras up in Baghdad, which in the last few moments, a large explosion was heard in the capital city. Also, we're understanding that the explosion was in the green zone. That is the more -- relatively more secure area that tends to be more protected.

That's our Aneesh Raman. We're trying to get up there. Working on getting more information on this. Once again, a large explosion. We're not sure on the details of, but a large explosion heard that green zone area of Baghdad.

We're back to a break. We're back after this.

(COMMERCIAL BREAK)

(WEATHER REPORT) KAGAN: Well, if you are a fan of "The Daily Show" with Jon Stewart, you might have caught our very own Miles O'Brien on last's night show. With apologies to Jon Stewart for stealing his line, here now is Miles' moment of zen.

(BEGIN VIDEO CLIP)

MILES O'BRIEN, CNN ANCHOR: I brought some foam, first of all. Feel it. That's it. That's what caused Columbia to come down.

JON STEWART, "THE DAILY SHOW": You're kidding me?

O'BRIEN: That's it.

STEWART: This is, if I may -- and, again, I don't want to challenge your space credentials here, but this is from out of drop ceiling in our green room.

O'BRIEN: These are the heat resistant tiles that protect the shuttle. That's the real deal, right there.

This is the stuff they pulled out. That's the gap filler. Kind of looks like a paint chip, doesn't it?

STEWART: Do you collect these like Hummel figures?

(END VIDEO CLIP)

KAGAN: Well, very funny. Jon, thank you for having our Miles on. Very funny guy. We've known that for a long time. Good guy, too.

Well, it is a race against time. Seven Russian sailors trapped at the bottom of the sea. What the U.S. Navy is doing to help with the rescue efforts. We'll get a live report from the Pentagon.

Plus, what if nearly every move you made was captured by camera? There's a good chance, you know what, that's already happening.

The second hour of CNN LIVE TODAY begins right now. Let's take a look what's happening "Now in the News."

First, a map of Baghdad and the green zone. That is the heavily- fortified sector of Baghdad, on the banks of the Tigris River. In the center of the city, just moments ago, a loud explosion was heard in the green zone. The exact details of what it was and exactly where it was, we're still working on. We have our cameras on and working on getting more information out of Baghdad.

Also, today we are told that the U.S. Navy is joining the desperate effort to rescue seven Russian sailors trapped more than 600 feet beneath the ocean. The sailors have less than 24 hours of oxygen left. Their mini sub is entangled in fishing nets off the Pacific coast of Russia.

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