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CNN Saturday Morning News
Rising Gas Prices Making People Unhappy with Congress; Obama and Clinton Campaigning Together; Markets and the Economy: What You Need to be Doing for Some Answers
Aired June 28, 2008 - 07:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
T.J. HOLMES, CNN ANCHOR: Good morning, everybody. From the CNN Center in Atlanta, Georgia, it is Saturday, June 28th. I'm T.J. Holmes. And look at here.
RANDI KAYE, CNN ANCHOR: I am Randi Kaye. Betty is on an assignment this weekend. Thanks for starting your day with us.
HOLMES: And thank you for being here with us.
KAYE: Thanks for having me.
HOLMES: Always good to have you. We need to talk about this today. You know, your home is worth less, your 401(k) is losing weight --
KAYE: A lot of it.
HOLMES: Gas prices are up. We've got all kind of issues with the economy right now. And investors got a bit rattled this week with the Dow being weighed down. We're going to be getting to that in just a moment.
KAYE: We'll also be talking politics. Are you feeling the love, feeling the unity? It was like a love fest in Unity, New Hampshire yesterday. But what is the reality behind the scenes? We'll talk about that.
HOLMES: Also, what in the world was going on here? Look at this scene. Man going into his trunk pulls out a bat and starts attacking a vehicle. Would you believe this was all over doughnuts?
KAYE: I believe it. I know how you feel about your doughnuts.
HOLMES: Well, Krispy Kreme. If this is over Krispy Kreme, I'd understand. But it's not.
KAYE: This is serious though.
HOLMES: This is very serious, but just doughnuts. We will explain that here shortly. Stick around for that one.
KAYE: Well, just when you thought economic news could not get any worse, it has.
HOLMES: Yes, talking about Wall Street here and the Dow moves down briefly into a bear market territory on Friday. It fell nearly 107 points on Friday to close at 11,346. That is after a 358-point drop on Thursday. For the year now, Dow is down more than 13 percent and that means the stock market has given up all the gains made since September of '06.
KAYE: That's right. And the price of crude oil keeps rising, as well. In New York yesterday, crude shot up to nearly $143 a barrel before settling back to $140.21. That is still a new record.
HOLMES: And, of course, high crude prices eventually result in higher gasoline prices. AAA says the average price of unleaded regular now sits just over $4.07 a gallon.
KAYE: And don't expect any help from Congress on bringing down the cost of gasoline, at least not right away.
HOLMES: Yes, while you're fuming at the pump, your elected officials are going on vacation.
CNN's Brian Todd found out that voters are not amused.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: It keeps climbing. We're slowing down at, we're going to even out at $100.
BRIAN TODD, CNN CORRESPONDENT (voice-over): That's just to fill his SUV with regular. Customers in Kensington, Maryland are now upset with Congress.
UNIDENTIFIED MALE: They're not doing enough and they know it.
UNIDENTIFIED MALE: I'm pretty sure they can do a little better than what they're doing right now.
TODD: Before the Democrats took control in 2006, Nancy Pelosi touted a common sense plan to help bring down sky-rocketing gas prices. Back then the price $12.91 a gallon. Here, in Congressman Van Hollen's district, it's now $4.20 for regular. Now, he and the rest of Congress are about to take a week off with no tangible relief at the pump.
REP. CHRIS VAN HOLLEN, (D) MARYLAND: We're frustrated and we're asking the American people to actually look at the substance of the proposals we're voting on in Congress and make up their own minds.
TODD: Like bills to crackdown on oil speculators, punish price gougers and pressure oil companies to drill on land they already sit on rather than offshore. None have been past this term.
Boiled down, Republicans generally favor more drilling for domestic sources of energy. Democrats oppose that on environmental grounds. They emphasize the need for alternative fuels and want to pay for that by taxing the oil companies more. Republicans fear that will be passed on to consumers. Both sides are doing more finger- pointing than compromising. SEN. JUDD GREGG, (R) NEW HAMPSHIRE: The Democratic proposals which we've seen coming forward involve taxation, involve litigation, and they involve regulation.
VAN HOLLEN: At every turn, the Bush/Cheney White House and Republicans in the Congress have tried to protect the big oil companies.
TODD: At the pumps, we asked, would you give Congress credit for at least trying?
UNIDENTIFIED MALE: If I tell the government, "I'm trying, trying to pay my taxes," I pay increased penalties on my late taxes. But, yet, the government can try and try and try and make us suffer while they're taking a week's vacation.
TODD: It hasn't been a total wash. Congress and the president get credit for a law to stop putting more oil into the Strategic Petroleum Reserves, which could put more oil on the market.
(on camera): Congress also passed a law for more fuel-efficient cars, but that was back in December, and clearly, it wasn't enough to stem the rising tide of gas prices.
Brian Todd, CNN, Kensington, Maryland.
(END VIDEOTAPE)
KAYE: Struggling to pay for gasoline is just part of it. More and more of you now say you're having a hard time buying basic groceries. It doesn't matter how much you make either. For people making $35,000 a year, more than half, 56 percent, say groceries are getting out of reach.
Obviously, it's easier for those with higher incomes, but even 16 percent of people making more than $100,000 a year now say they're finding it tough to cover their food costs. A survey from Information Resources Incorporated found that consumers are actually skipping their favorite brands to save money.
HOLMES: And we want to know what you are thinking about all this morning. Are you feeling any pocketbook panic and what you think should be done about this all?
KAYE: If so, e-mail us at weekends@CNN.com, we'll be sharing your concerns, your comments all throughout the morning.
HOLMES: And you get more tips on bearing the market at CNNMoney.com, of course.
KAYE: That's right. You will find the latest information about your personal finances, as well as business news you can use at CNNMoney.com. We're going to be talking a lot more about your finances with our personal finance expert Terry Savage. She's going to come up later in this hour to talk about that. HOLMES: And, of course, we know it's your money. It's, however, somebody else's plans for your money. We want to take a look now what the presidential candidates would do to stimulate the economy and what they would do, again, with your money.
Barack Obama's plan would pump $75 billion into the economy through tax cuts and direct spending. Obama would provide an immediate $250 tax cut for workers and $250 bonus for seniors on Social Security.
John McCain, meanwhile, would lower the corporate tax rate from 35 percent to 25 percent. He would also provide deductions in tax cuts to businesses for equipment and technology, as well as research and development.
KAYE: McCain and Obama are courting Latino voters today, both are making back-to-back appearances at a Latino conference in D.C. That begins at 11:00 o'clock Eastern Time. McCain is also scheduled to meet separately with presidents of Iraq and the Philippines and attend a private fundraiser in Louisville, Kentucky.
HOLMES: All right. It wasn't that long ago, didn't we see Hillary Clinton yelling and screaming at Obama, "Shame on you."
KAYE: It wasn't pretty.
HOLMES: "Meet me out back" and all that stuff and we saw her...
KAYE: I don't know if she said that exactly.
HOLMES: It was something to it, I think.
KAYE: Something along those lines.
HOLMES: But just yesterday, if you listened to her, it was like Obama was the greatest thing since sliced bread. You saw it all unfold right here on CNN. Take a look.
KAYE: Obama and Clinton campaigning together for the first time since the bruising primary battle. The two former rivals held a unity rally yesterday in perhaps appropriately enough Unity, New Hampshire.
(BEGIN VIDEO CLIP)
SEN. HILLARY CLINTON, (D) NEW YORK: It was spirited because we both care so much. And so do our supporters, each and every one of you. And I am so proud and privileged today, here in Unity, to help bring together the 36 million Americans who supported us to create an unstoppable force for change we can all believe in.
(APPLAUSE AND CHEERS)
(END VIDEO CLIP)
KAYE: Obama acknowledged he not only needs Senator Clinton's support, but her husband's, as well. (BEGIN VIDEO CLIP)
SEN. BARACK OBAMA, (D) PRESUMPTIVE PRES. NOMINEE: We need them. We need them badly. Not just my campaign, but the American people need their service and their vision and their wisdom, in the months and years to come because that's how we're going to bring about unity in the Democratic Party, and that's how we're going to bring about unity in America, and that's how we're going to deliver the American dream in every corner of every state of this great nation that we love.
(APPLAUSE AND CHEERS)
(END VIDEO CLIP)
KAYE: Well, I'll tell you, our viewers were feeling the love, certainly, in Unity, New Hampshire. They captured some great shots at the Unity rally.
HOLMES: We have one here to take a look at. Look at that. These two used to be at it.
KAYE: Who ever would have thought?
HOLMES: And now, they look like best friends.
KAYE: They look like. That's -- there you go.
HOLMES: This was sent to us by Joshua Compton of Windsor, Vermont. He says he is a strong supporter of Senator Obama, while his wife is a big supporter of Hillary Clinton. And, wow, there's a few more shots here I believe from him. He says the unity rally was not only a chance for political unity, but it was also a chance for unity within his own household. He and his wife are now trying to heal the split in their relationship.
KAYE: Over the candidates. Let's not make that subject.
(LAUGHTER)
KAYE: All right. Coming up in "THIS WEEK IN POLITICS," what's ahead for Senator Clinton? Will her Fed issues stay on the national agenda? Catch CNN's Tom Foreman on "THIS WEEK IN POLITICS" this evening at 6:00 Eastern.
HOLMES: And we're also going to hear much more from and about the candidates in about a half an hour, in the next half hour. Will the unity push actually work? We'll get some insights from the Washington bureau chief of the "Wall Street Journal."
KAYE: Here's what we were talking about earlier this morning. We give you a glimpse of it. A confrontation caught on tape. This incident in Kansas City, Kansas, may look like a case of road rage. A man taking that baseball bat, he starts pounding another man's truck.
HOLMES: Yes. This whole thing is over a pack of doughnuts, a 50-cent pack of doughnuts. The customer tried to return those doughnuts because he says they were stale. They're 50 cents, what do you want, morning freshness? The store owner says the customer was shouting at the clerk and that's when he went for the bat.
(BEGIN VIDEO CLIP)
KHALID CHEEMA, CONVENIENCE STORE OWNER: The guy coming in and parked his truck right front of the door and shouting to the clerk and then the problem was started.
LEN HILL, CUSTOMER: We were both talking about getting into a fight. You know, he was going to kick mine and I was going to kick his.
(END VIDEO CLIP)
HOLMES: Doughnuts.
KAYE: The duel over doughnuts.
HOLMES: That package right there. Again, we're not talking Krispy Kreme, those are worth fighting over. We're talking about 50- cent package of doughnuts. The police arrested the clerk and charged him with criminal damage to property.
KAYE: And it made the news. I think that was the top story there. It certainly looked that way.
HOLMES: We'll turn to much more serious issues. Severe weather is actually smacking around the Midwest a bit. Several Olympic athletes are among those who were caught in the storms, forced to huddle on hallways. We'll check it all out.
That's ahead right here on CNN SATURDAY MORNING.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
UNIDENTIFIED POLICE OFFICER: We are recommending that you take cover somewhere and not stay in the park.
(END VIDEO CLIP)
HOLMES: Yes, you need to get out of here, tornado sirens and police warning sent people in a park there in Omaha, Nebraska, they're scrambling for cover. It's a good thing they left, because minutes later, it was hit by heavy rain as well as hail. Some streets and cars are left under water.
The storm is also being blamed for the death of two teenagers across the border in Council Bluffs, Iowa. Look at that car there. The front seat of that car was crushed by a falling tree and (INAUDIBLE) screams from the back seat where a 15-year-old girl was pulled out and was taken to the hospital for injuries being described as not being so severe. Now, back to Omaha where the storm is also hit Qwest Arena, that's the site of the U.S. Olympic swimming trials this weekend. The building was battered, the athletes however stayed safe in the hallways. Trials for the Beijing games will go on this weekend.
KAYE: And now, let's look at the California wildfires. The biggest is burning around Big Sur. The popular tourist area is thick with smoke; roughly 12-mile section of the Pacific Coast Highway has been shut down. Sixteen homes destroyed and more are still in the fire's path.
And we wanted to show you this morning this map put together by California fire officials. It's almost hard to believe, but there are more than 1,000 fires burning there right now. Most, we're told, started by lightning.
And here are some more staggering numbers. Firefighters from 41 states are battling those blazes. California Governor Arnold Schwarzenegger has now asked the federal government for help.
HOLMES: And they are still trying to hold back the water in Missouri. This is a levee in Winfield we're showing you here. The break in the wall was called by burling muskrats. I don't know if anybody knows what a muskrat is, but it's not pretty. It's an ugly little rodent, to be quite honest. Now, the call has gone out for more sandbags as they're trying to protect 100 homes that are in direct danger. It's a similar story in other town along the Mississippi and Missouri rivers.
KAYE: Amazing that muskrats can cause that. They just chewed right through it.
HOLMES: Yes, they did.
We want to know or show you some interesting, i-Report pictures that we got as well. Here is one, this is from iReporter David Fishman that shows a guy in Jefferson, Wisconsin, going to extraordinary lengths to keep that big piece of equipment dry. He has built a floodwall and with pumps around what he's called a light span (ph) cabinet.
OK. It's used to bundle wires and cables together for things like cable TV.
KAYE: Don't want to be without that cable TV. Keep it dry, keep it dry. Maybe he's watching this morning. What do you think, Reynolds?
REYNOLDS WOLF, CNN METEOROLOGIST: I say no cable to, no us. Hey, got to have that cable TV for CNN.
KAYE: There you go.
WOLF: Hey, I mean, come on. Let's put --
HOLMES: And good to have you back, actually, Reynolds. You've been out. We haven't had you for the last weekend. You were out covering a lot of that going on and...
KAYE: He was sandbagging.
HOLMES: He was sandbagging.
KAYE: Yes, he sure was.
WOLF: My fingers were still frowned from all the water. It's just ridiculous, especially in parts that we've seen still in Missouri. Take a look at this Google image what we have right behind me and notice, Pin Oak levee, this is the are that we were talking about that was in the day with not just with the floodwaters but, of course, the muskrats going through here and that's causing all the issues, that's what's giving all the flooding conditions.
We do have some good news today with regard to the rainfall. The rainfall, it's still forming in parts of the Midwest, but thankfully, it's a bit part of the south and this flood-prone areas north of St. Louis. So, although we're seeing some strong storms, say, in Springfield, just northeast of Fayetteville and much of that is moving to the south and southeast and is not going to be affecting a great deal of the Mississippi.
This morning, it's also a rough time in parts of Oklahoma City. Some strong storms and we'll bring you the latest on that. Plus, we're going to talk about what's happening out west and it's all moments away. Let's send it back to you at the news desk.
HOLMES: All right, Reynolds. And don't go too far. You're going to be interested in this next piece of video we're about to show people here.
KAYE: Very interesting.
HOLMES: It's very interesting and certainly, we need to warn.
KAYE: There you go, there it is.
HOLMES: Do not try that at home. That is a 35-foot drop. All right, that's a stunt diver. His name is Darren Taylor, also known as Professor Splash.
KAYE: Very aptly named.
HOLMES: Some were calling him "professor stupid."
KAYE: That what you brief (ph) named him.
HOLMES: No, I read it somewhere.
He set a shallow dive record from 35 feet 5 inches up. And he jumped, as you there, into a kiddie pool that was 12 inches deep. There was, however, a foam pad under that pool. But still...
KAYE: We can give away all the secrets there. He's done this all over the world apparently. And he says his secret is just to skid the water, skid right over the water. I don't know, it didn't look like he skidded over that water.
WOLF: It looks like he went face first into it. It's kind of unbelievable.
KAYE: Right. Belly flop.
WOLF: My goodness gracious. Well, you know, thank heavens for that foam pad. You know, of course, when we do weather from time to time, we also have a pad right here, just in case, we fall face forward (INAUDIBLE).
HOLMES: (INAUDIBLE) can we get a shot of that please?
WOLF: We're going to see you again.
HOLMES: Can you see that? No, a shot of your foam pad you got going over there.
WOLF: We're not going to do that.
HOLMES: OK.
KAYE: Oh, there it is again, very nice.
HOLMES: But again, please don't try that at home. All right.
KAYE: That was really something to see. Move on from there, please.
HOLMES: Well, one of the most -- well, two words, actually. We're going to get into with motorists right now. You're going to be thrilled to hear that you don't hear often.
KAYE: No, but we'd like to hear them more -- free gas. That's right.
HOLMES: If we could all be this lucky, didn't we, someday? This is what happens when you give away free gas. People in Fort Lauderdale lined up around the block. We'll tell you why this gas will be given away.
(COMMERCIAL BREAK)
HOLMES: I want to pass along information that we're just getting in to us here.
Happening right now, Senator Barack Obama, we understand, is now paying a visit to Walter Reed Army Medical Center in Washington, D.C. This was not something that was really on his regular schedule that was announced and it's often the case sometimes we've seen with Senator John McCain, his Republican opponent who has done this so often -- visit soldiers at this hospital, but certainly, a solemn visit and not really something being publicized but we're getting kind of word of it.
And now, we have confirmed that Senator Barack Obama, right now, is paying a visit to Walter Reed Army Medical Center in Washington, D.C., not sure if we will be able, at some point, get pictures of it. If we do, we'll pass those along to you. But we're getting he is paying a visit to them right now.
KAYE: Well, it's not your imagination that gas prices are shooting up at a dizzying rate. A year ago, you were paying on average just under $3 a gallon.
HOLMES: That was it?
KAYE: That's it.
HOLMES: Well, I guess, that was a lot at the time. But now, it's really a lot at $4.07 a gallon. That is the average in this country. $3 sounds just fantastic right about now.
KAYE: It sure does.
OK. Well, lots are going on here in the markets and the economy. So, take a deep breath. What do you need to be doing right now for some answers?
Let's turn to personal finance expert Terry Savage. She's a personal finance expert and a nationally syndicated columnist with the "Chicago Sun-Times." And she's joining us this morning from New York.
Good morning, Terry.
TERRY SAVAGE, PERSONAL FINANCE COLUMNIST: Good morning, Randi.
KAYE: So, what should the average investor be doing right now? That's our top question.
SAVAGE: Well, the investor and the average citizen have much different jobs.
The investor, depending on, if you're young and you're continuing to contribute to that 401(k), you've got to believe we'll get through this the way we've gotten through so many other things. And, you know, there's never been a 20-year period where you have lost money in a diversified portfolio of American stocks. So, you have to keep investing.
Those getting closer to retirement, though, need to think about how their portfolio's structure. They need a few safer things, and I'm not saying bonds because bonds at inflationary times can lose you just as much money as stocks can scare you.
KAYE: So, does it still hold that as long as we stick with it long-term, we'll be OK, we can ride this out?
SAVAGE: Randi, you absolutely can. You know, I think back to the '80s which most people have forgotten, we had such terrible inflation, we had a 21 percent prime rate, we had double-digit inflation, and double-digit employment in the Midwest. And look, we've come so much farther than then. The Dow then was back in the 800s. So, yes, we'll get through this. But this won't be pleasant for investors or for consumers. It's interesting to note, though, you know, until oil got over $107 a barrel, we still weren't -- and by inflation and just the Dows (ph) we still weren't back where we were in the '70s.
KAYE: And for people who say, "I'm going to pull out, I'm going to stay in my cash position," what's your advice to them?
SAVAGE: Well, I call that "chicken money," and it's always wise to have some money on the sides. The problem is, that these days with the Fed trying to push down interest rates, you're getting maybe 3 percent, 3.5 percent on bank CDs. But that gives you liquidity; it gives you flexibility, and lets you sleep at night. So, a small portion of your money depending on your age and stage set aside safely is always a good idea.
KAYE: All right. Our finance expert, Terry Savage, thanks so much for your advice this morning. We can all use it.
SAVAGE: Thanks, Randi.
HOLMES: Well, up next, we're going to be talking about the continuing mystery surrounding the death of a pregnant soldier. It's really intensifying now.
KAYE: Why wasn't she declared AWOL by the army when she first went missing? That's the question.
(COMMERCIAL BREAK)
HOLMES: Authorities are searching for a missing 12-year-old Vermont girl and are focusing on her online activities. They believe Brooke Bennett may have been going to meet someone she met through her MySpace page. Brooke vanished Wednesday shortly after she was seen at a convenient store with her uncle. They left and went in separate directions. She said she was going to meet a friend. Her disappearance prompted Vermont authorities to issue the state's first AMBER Alert.
KAYE: New information in the case of a college student murdered earlier this year. Police now say Eve Carson was kidnapped and not carjacked as they initially thought. Carson was student body president at University of North Carolina. She was found shot to death in March, not far from campus. Now, according to court documents released just yesterday, an informant told police Carson was kidnapped from her home and forced to give her abductors ATM access to her bank account.
HOLMES: Police investigation continues and we continue to learn more about the death of a pregnant soldier from Fort Bragg, North Carolina.
KAYE: Our affiliate, WRAL says sections of drywall containing what could be blood were removed from the motel room where specialist Megan Touma was found. She was found last weekend. That's according to search warrants.
Meanwhile, the army is investigating the circumstances of her disappearance.
(BEGIN VIDEOTAPE)
KAYE (voice-over): Could Army Specialist Megan Touma have been dead for more than a week without the army ever reporting her missing?
UNIDENTIFIED FEMALE SOLDIER: We're shocked, first and foremost. And, you know, it's always sad when you lose a soldier.
KAYE: Officials at Fort Bragg believe the last time anyone there saw her was at roll call nine days before her body was found at this Fayetteville hotel. Police have not named any suspects. Touma was seven months pregnant, her first child. Her aunt says she had a boyfriend but didn't know if he was the father.
(on camera): A search warrant says a hotel maintenance man went inside Touma's room Saturday morning. He smelled a foul odor, saw her badly decomposed body in the bathtub, and called police. Her bed was slightly pushed away from the wall, and the night stand and lamp on top of it were out of place.
EL SAYED TOUMA, VICTIM'S EX-HUSBAND: The army stayed in that hotel and then didn't bother to check on her to make sure that, you know, she was OK.
KAYE (voice-over): Touma's ex-husband says someone should have looked in on her.
TOUMA: Where are the cleaning people? Where is maintenance? Where's the front desk. How come nobody checked on her?
KAYE: That we don't know since hotel staffs and police aren't talking.
(on camera): Here's what we do know -- Touma arrived here at Fort Bragg in June 12th from Germany, where she's been stationed for three years. The army says she signed in at base at 2:00 a.m. and later that day, around 3:15 in the afternoon, she arrived for roll call. That is the last record of her at Fort Bragg.
She was supposed to return for roll call Monday, June 16th, but the army says it has no indication she ever showed up.
(voice over): Keeping them honest, we asked Fort Bragg why Specialist Touma wasn't declared AWOL. Officials declined to speak on camera but told us, "If someone is reported missing, it's policy to declare them AWOL within 24 hours." The army says Touma was not properly accounted for and is investigating why proper procedures were not followed.
It's still not clear if Touma's commander ever reported her missing, even though five days had passed since she'd skipped roll call without a word. The army did not call her cell phone, adding to the mystery, police documents show a "do not disturb" sign had been on Touma's door for four days. Touma was scheduled to check out the morning her body was found. The keys to her rental car are on the dresser.
Fort Bragg wants to know where she was headed. Police want to know who stopped her.
(END VIDEOTAPE)
HOLMES: OK. Everybody wants to know a lot about this case. It's a huge mystery right now. But any more to the 911 call? Are they looking into that?
KAYE: Well, we've asked for the 911 call and police actually wouldn't release it and that to us says that there's probably some pretty telling information on there, some good clues because they have actually said that it would hamper the investigation if they released it.
We're also still waiting on the autopsy report. The first autopsy came back but it was incomplete, they couldn't even tell actually the time of death. So, she may have been dead for as many as -- as long as nine days because no one had seen her since the 12th of June. And her body was found on the 21st. But there's a lot of things that could affect the autopsy -- how warm it was in the room, how warm the water might have been in the bathtub, if there was water in the bathtub where she was found.
So, we're still waiting on a lot of that questions.
HOLMES: And also, a really good point about that 911 tape, oftentimes we get those if it's just a simple (INAUDIBLE) found the body.
KAYE: Right. And they've actually said it could hamper the investigation. So, there must be a pretty good clue out there.
HOLMES: All right. Well, thank you, we look forward to your updates. We know you will have them and a lot of answers are still out there to be found.
We do want to get some answers now. We always get the answers from our Mr. Reality, Josh Levs, standing by this morning to talk about nuclear energy, I do believe.
JOSH LEVS, CNN CORRESPONDENT: Yes, that's right. It's two words you almost never hear on the campaign trail, all of a sudden you do, and now, someone is getting a pants on fire rating.
(COMMERCIAL BREAK)
KAYE: Welcome back. Want to attract a crowd in a hurry? Try this.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Free gallons of gasoline, absolutely free!
(END VIDEO CLIP)
KAYE: That's right. You heard it -- free gas.
HOLMES: Maybe we should try that and get some more viewers, some kind of way.
KAYE: We don't need any more viewers, we've got plenty.
HOLMES: We don't need any more viewers.
KAYE: We've got plenty. We have so many. I don't know what to do.
HOLMES: Well, as soon as this announcement went out, word pop out (ph) the radio stations, before a lot of cars started lining up, a lot of people, certainly, as we all know, need this break.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I might have to get a second job, just to take care of my gas.
UNIDENTIFIED FEMALE: Times is hard for everyone, I don't care if you're a multi-millionaire.
(END VIDEO CLIP)
HOLMES: OK. Wait, do you start right in that video, people are pushing that car, which was maybe out of gas, it was a Mercedes, S class, that's a $90,000 vehicle.
KAYE: It's affecting everyone.
HOLMES: Right there. That is an expensive vehicle.
KAYE: Maybe sell the car and buy some gas.
HOLMES: OK. Again, it's the local radio station behind the giveaway and even though the free gas did not start flowing until noon, people are lining up by 10:00 a.m. Some even ran out of gas, as you saw there, as they waited to be pushed up to the pumps. Again, that is $90,000 car.
KAYE: S class.
HOLMES: Yes.
KAYE: High fuel prices have helped resurrect two words hardly ever heard on the campaign trail -- nuclear power.
HOLMES: And Josh Levs is here with the reality check, somebody's pants are on fire.
LEVS: Yes, this is from our good friend at Politifact. Let's see if Scott (ph) can close on this really quickly, I'm going to tell you about this. What they're saying today is that something John McCain has been saying, deserves this rating -- his pants are on fire. And, folks, this issue is all about a way to power the planet without hurting it.
(BEGIN VIDEOTAPE)
LEVS (voice-over): Gas prices, oil prices, global warming fears. It was only a matter of time before the presidential race would turn to...
SEN. JOHN MCCAIN, (R) PRESUMPTIVE PRES. NOMINEE: Nuclear power.
LEVS: McCain wants a lot more of it. His web video claims Obama says, "No to clean and safe nuclear energy." And you hear Obama saying...
(BEGIN AUDIO CLIP)
OBAMA: I am not a nuclear energy proponent.
(END AUDIO CLIP)
LEVS: That quote comes from an event in Iowa when Obama said he has not ruled out more nuclear power.
OBAMA: But only so far as it is clean and safe.
LEVS: How clean and safe is it? A founder of Greenpeace who now consults the nuclear industry says...
UNIDENTIFIED MALE: America's future should be powered by nuclear energy.
LEVS: But Greenpeace itself says nuclear power presents an unacceptable risk to the environment and to humanity.
Here are some basics: nuclear power plants generate electricity without burning fossil fuels. The 104 nuclear reactors in the U.S. provide 19 percent of the country's electricity. They create and store reactive ways. The long-term plan is to embed that waste in a facility at Nevada's Yucca Mountain. McCain supports it; Obama opposes it.
Some environmental groups cite other problems such as dangers of uranium mining to run the plants. They also point to the 1996 explosion at Ukraine's Chernobyl nuclear power plant that studies say could be linked to thousands of deaths. In the 1979 partial meltdown at Pennsylvania's Three Mile Island, not officially linked to death or injuries.
Some nuclear energy supporters say Chernobyl would never happen today and that Three Mile Island showed protective steps work.
And some blame movies like "The China Syndrome" for stoking unnecessary fears. (END VIDEOTAPE)
LEVS: I know, there have not been any major disasters at U.S. nuclear facilities since they've existed. But some environmental groups say, "You know what, the ones that have happened have been underreported and under-investigated."
And, T.J. and Randi, I'm going to tell you guys, we're having this debate on iReport.com right now and any of you all can join in. You can see people joining in the conversation saying, "Hey, we should do what France is doing. They have a lot of nuclear power." We see someone here asking Barack Obama, "You know what, we're a free nation. It's too dangerous to have all these dotting our landscape."
You can join this conversation at iReport.com. Tell us what you think, later on, we're going to share some of your thoughts with all the viewers -- T.J., Randi.
KAYE: Great, thanks, Josh.
LEVS: Thanks guys.
HOLMES: Thanks, Josh.
Well, the candidates -- oh, excuse, they're not both candidates any more. Hillary Clinton and Barack Obama, well, they're keeping their eyes on the prize, at least, trying to unite the Democrats.
KAYE: Their goal? To retake the White House.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
CLINTON: I know what we start here in this field in Unity will end on the steps of the Capitol when Barack Obama takes the oath of office as our next president.
(APPLAUSE)
(END VIDEO CLIP)
HOLMES: What?
KAYE: You ever think you'd hear that?
HOLMES: Did I hear that right? That was Senator Clinton. That was yesterday's unity rally, I can't even get it out. It doesn't sound right.
KAYE: You're still in shock.
HOLMES: At least a few months ago, we've never thought we'd get to this. But yes, they are together -- Barack Obama and Hillary Clinton. KAYE: They certainly are. The former rivals are moving on from their historic Democratic primary battle, saying the next step is about beating John McCain.
HOLMES: And we're going to get more now on this from CNN's Candy Crowley.
(BEGIN VIDEOTAPE)
CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT: One, two, three. It was their picture perfect day. Unity to the sight of them, unity to the back of them, as Hillary Clinton and Barack Obama tried to refocus the Democratic storyline from a fractious primary to future possibilities.
CLINTON: What we start here in this field in Unity will end on the steps of the Capitol when Barack Obama takes the oath of office.
CROWLEY: He began with full-throated praise.
OBAMA: She rocks. She rocks.
(APPLAUSE)
OBAMA: That's the point I'm trying to make.
CROWLEY: And he said the words some of her voters have been waiting to hear, a recognition that sexism still exists, but that she powered through sending a message to everyone, including his daughters.
OBAMA: They can take for granted that women can do anything that the boys can do.
(APPLAUSE)
OBAMA: And do it better. And do it in heels. I still, I still don't know how she does it in heels.
CROWLEY: Every public moment showed them in sync though they insist that the color-coordinated outfits were accidental. And their messages have melded. The choice is no longer Clinton or Obama; it's Obama or McCain.
OBAMA: We can continue spending $10 billion to $12 billion a month in Iraq and leave our troops there for the next 20 or 50 or 100 years. Or we can decide that it's time to be in a responsible, gradual withdrawal from Iraq. That's the choice in this election.
(APPLAUSE)
CROWLEY: New Hampshire is a toss-up state in the fall election. In the primary, it saved her campaign.
CLINTON: New Hampshire has a special place in my heart. And I'm here today to ensure that come November, New Hampshire will have a special place in Barack Obama's heart, as well.
CROWLEY: Maybe she can help him here and her fundraisers would be a fresh source of cash, but money hasn't been a problem and in big Clinton states, Pennsylvania and Florida, he's holding healthy leads over John McCain.
So, who needs unity more? Maybe she does. Clinton standing in the party at stake, she has to be all in. Any less of an investment could jeopardize her future and the legacy.
OBAMA: We need them badly, not just my campaign, but the American people need their service and their vision and their wisdom in the months and years to come.
CROWLEY: Since conceding, she's been pitch perfect. And now, she's putting money where her mouth is, donating $2,300 to Obama's campaign. That's the maximum allowed. And also is stepping up to the plate with the check for the Obama campaign, the missing man, Bill Clinton.
Candy Crowley, CNN, Washington.
(END VIDEOTAPE)
HOLMES: Well, all right. The unity rally was a very public gesture to heal old wounds, will it work, will it unite this party?
Let's talk about that now with Gerry Seib of the "Wall Street Journal."
Sir, thank you for being here. We had an e-mail from one of our viewers that said this was like two divorced parents who had to get along in front of the kids just to put on the show. Now, is that what we're seeing here? Have these two have really healed their wounds and therefore, it's going to heal the wounds of the whole party?
GERRY SEIB, WALL STREET JOURNAL: You know, I thought it was better than that actually. Honestly, I think if you're a Democratic Party leader, you've got the best that you could have wanted out of this end game this week. You had Barack Obama going to Hillary Clinton supporters and saying, "I'm with her." You had Hillary Clinton supporters saying to her supporter, "I'm with him."
You got each of them going to their own fundraisers. He, to ask his fundraisers to help her pay off her debts; her, to ask her fundraisers to help him pay for the general election to come. That's a pretty good show all the way around. There's clearly some tensions still on the air, but considering where we were a month ago, I think this is a pretty good week for Democrats.
HOLMES: Will this good show and this great picture that the folks are seeing and the Democrats probably certainly love, is this going to now renew some of that talk about possibly this being a dream ticket?
GEIB: It will, but I don't think that's likely to happen. You know, interesting thing happened this week. We, at the journal did some polling in battleground states, four battleground states and asked people whether they wanted Hillary Clinton to be Barack Obama's running mate. And there's not really a huge ground swell of support. You had about half the Democrats saying that they wanted that, 1/3 is saying they didn't really want that.
And half of the independent voters that we surveyed said they didn't want Barack Obama to pick Hillary Clinton. Independents, obviously, are the key swing voters, and so, you look at those numbers in the Obama camp and you say, "Well, maybe we don't need to go there."
HOLMES: And still, last thing here, and big deal, no big deal about Bill Clinton. He hasn't been out there, hasn't come out and said anything yet. I guess, it's reasonable think as some are saying, "You know what, it's his wife's turn to be out there. She should be the one speaking on behalf of the Clinton family and supporting Barack Obama."
Any big deal right now that Bill Clinton has not shown up and publicly come out and supported Barack Obama?
GEIB: No. I think it's much better that he wasn't on the stage yesterday. He would have been a distraction. I think they're better off if Bill Clinton, you know, comes up to the front of the stage later in the month, later in the summer, not now.
HOLMES: All right. And did they coordinate their outfits, the blue tie, the blue suit?
GEIB: It looked that way, didn't it?
HOLMES: Could be, no?
GEIB: Perfect.
(LAUGHTER)
HOLMES: Gerry Seib, again of the "Wall Street Journal." Sir, we appreciate your time and your insights this morning. Thanks so much, have a good day.
GEIB: Thanks. All right.
KAYE: And also happening in politics today, McCain and Obama are on the trail today. They will be addressing Latino leaders in Washington, D.C. And they will be talking to the National Association of Latino elected and appointed officials. We're going to have live coverage beginning at 11:00 a.m. This is really very important because there's more than 9 million Latinos expected to vote and it could swing the election some are saying.
So, stay with CNN. Even when you're online, log in to keep up with the best political team, period. The address is CNN.com/politics.
HOLMES: It used to be the best on television and now it's just period.
KAYE: Of course, overall. No, it's best overall.
HOLMES: In the history. All right.
We're going to turn now, not to the vote here in this country, but the vote over in Zimbabwe. This has just been a horrible story really to keep an eye on. And many people there were told to vote or face the possibility of violence. That's the reality a lot of people are facing there in Zimbabwe.
(COMMERCIAL BREAK)
HOLMES: There she is, singer Amy Winehouse, just one of the artists performing in London for Nelson Mandela's birthday concert.
KAYE: That is pretty special. Nelson Mandela is turning 90- years-old this weekend. That brought out an all-star cast to celebrate with him, as you saw right there. All the proceeds from the show are going to Mandela's AIDS charity -- 46664. That is the number Mandela wore in a South African prison for 27 years.
HOLMES: All right. We'll turn to Wimbledon now. A big event is happening in England. I don't know if you're a tennis fan or not, but American tennis fans are certainly disappointed right about now. A lot of upsets and a lot of Americans on their way home already.
Sports business analyst, Rick Horrow, joins us now from West Palm Beach, Florida.
Sir, good morning to you. Why should Americans still be interested in this tournament? Americans are falling by the wayside. No American men left.
RICK HORROW, CNN SPORTS BUSINESS ANALYST: No American men left but before that, are we color coordinated? I guess it's very important these days.
HOLMES: That was unity. You and I have not had unity since we've known each other. So, no.
HORROW: I will bond with you, we'll have the unity we want, OK? But it's better for us to have the unity than the American players.
You know, starting this tournament, there were five American seeds on both sides of the draw, the top 32 in each of the men and women. There are only two left on the women's side and the Americans aren't gone. Now, compare that to 11 Russians and nine French and six Spaniards, even Cypress in India and Israel have seeds and we understand, we've got an issue.
HOLMES: OK. Yes. But is that hurting the popularity of tennis in this country? We still have Venus and Serena who've been around a long time that people have been following, but has that hurt the popularity? People want to see Americans, want to see them do well, a lot of people don't hear, don't know all those other names, even though, you know, it's quality tennis.
HORROW: You mean the grunting interchangeable female eastern Europeans. It's hard to pronounce them, OK? And so, that's the deal. And on the men's side, by the way, we know Roger Federer is very important but his cue score, his index of popularity is half that of Tiger Woods, even less. Corporations love it, though. There are 25 corporate partners at Wimbledon's 16 suppliers. So, because of the demographics, the corporations continue throw money into this path (ph).
HOLMES: OK. And something else, and I'm going to go ahead and talk about it now, and it's unfortunate. Maria Sharapova was getting more questions at some of her press conferences about what she was wearing instead of her tennis. Now, this is a, I guess, tuxedo something inspired outfit of hers. And you know the one. We're looking at it now. What's going on here?
HORROW: Well, first of all, you're never going to be the fashion editor for CNN if you call it a tuxedo something inspired outfit.
HOLMES: No, with the thing in the front, the ruffles in the front, that thing.
HORROW: I'm not going to get into all of that, except, Nike tried to do some things this year with that thing and, by the way, Serena had a trench coat on the first round and even Federer had a cardigan sweater after the interview. So, they're trying to mix it up a little bit to get people talk about it. Guess what, you're talking about it.
So, she didn't do very well because she's out of the tournament and Eva Ivanovic, who is the Ana Ivanovic who is the top seed, basically, makes very little off the court. Maria is doing all right, $20 million off the court. So, maybe she can wear what she wants as long as she keeps winning, but she's got to wait for the U.S. open.
HOLMES: OK. You know what, we're talking about it. Sometimes, they make more money, unfortunately, off the court than they do on the court. We've seen that plenty of times before.
Rick, it's good to see you again this morning. Really, you look good.
HORROW: Yes. But, you and I are going to play some tennis maybe. So, you better start thinking about how to play the sport.
HOLMES: Actually, Randi Kaye is a huge tennis player, she's a tennis fan and she's good.
HORROW: Randi, you know, T.J. talks a good game but he doesn't play very well.
KAYE: I know.
HORROW: And you and I have some plenty of time (ph).
KAYE: All right.
HOLMES: That will be all, Rick. Take it easy. Really, I don't play tennis.
KAYE: You'll learn.
HOLMES: I'll learn. I'm working on golf right now.
KAYE: OK. One at a time, don't want to overload you.
HOLMES: All right. And check this out here. I don't know if I'm going to be trying this. You know, you've been to a mall; you've been to an escalator before.
KAYE: Probably not like this, though. It takes really twisted mind. We've decided to even think about doing what she's doing.
(COMMERCIAL BREAK)
HOLMES: All right. Imagine one day, controlling a machine using only your mind.
KAYE: Imagine that.
HOLMES: Randi, closer to reality than you possibly think. Researchers at the University of Pittsburgh reportedly have trained, what else -- monkeys to feed themselves using robot that looks (INAUDIBLE).
KAYE: It's always a monkey or a rat, right? What you see there is a monkey using only his brain to manipulate that robotic device to bring that food to his mouth. That's right. An article at a Newscientist.com apparently explains how they did it. Video of the experiment was also posted on YouTube.
HOLMES: OK. There is now a practical application for this technology. One day, it could allow paralyzed people to be more self- sufficient. So, even though the video was kind of funny looking there with the monkey, it has some real serious payoffs possibly.
KAYE: Absolutely.
Well, one of the most popular viral videos this week, we call the mall escalator abs workout. That's right. We don't recommend trying this. Don't do it, unless you want to attract the attention of mall security. There she is, spinning around, the video inspired others apparently to try it, but not so easy.
Check out this guy. Oh, yes. Yes, apparently he got stuck. There he is. It looked like it hurt. And he needs some help getting unstuck. So, not a good idea.
HOLMES: Yes. The video rolled, he actually had a friend come over and get him out of there. But he's at some public place making a fool out of himself.
KAYE: I hope you got out of there.
HOLMES: He did eventually.
Well, we have another piece of video here, we're not sure if this is the real thing. It's called a, Shredordie.com is a Web site we found it. This purportedly shows the skateboarder who is on the freeway. Now, some descriptions say it was the 405 in San Diego last Saturday on go skateboarding day. Didn't even know that was such a thing. And you can see, it appears that all the traffic was backed up behind him. Again, we don't know about this one.
KAYE: Yes. And if that weren't dangerous enough, well, here's one of the skateboarders who breaks his board. Oh, man, after executing a jump. The worst part, though, came after the fall, he was so mad, check it out, he stumped on the board. It broke in half, kicked up, as you can see, and hit him in the throat.
HOLMES: Oh, wow.
KAYE: It's not a very smart move. See, you've got to take everything in stride. Don't get angry, end up hurting yourself even more. Not good.
HOLMES: Well, the next hour of CNN SATURDAY MORNING and much more video to come, starts right now.
And yes, good morning to you all. From the CNN Center in Atlanta, Georgia, it's Saturday, June 28th. I'm T.J. Holmes.
KAYE: And I'm Randi Kaye. Betty Nguyen is on assignment. Thanks for starting your day with us.
Severe weather overnight disrupts the Olympic swimming trials. Hundreds of swimmers preparing and practicing had to be evacuated from the building. We'll share some of those iReports with you this hour.
HOLMES: And also, we're going to be heading south of the border, not for fun, but we've got to find some gas around here somewhere that's a little cheaper than the stuff we're paying for here. Some creative ways people are finding to save some money.
KAYE: We start, though, with two very different political situations. Here in the U.S. we're talking about unity -- the joint appearance of Barack Obama and Hillary Clinton.
HOLMES: But it is an alarmingly different story in Zimbabwe. There people telling tales of torture on Election Day, also allegations of forced votes for the president there, Robert Mugabe. He's the only candidate on that ballot. The other candidate actually pulled out. The U.S. is now vowing to push for harsh measures against Mugabe's government. Meantime, South Africa blocked an earlier United Nations condemnation of the election. This morning, the African Union is meeting to discuss the worsening situation there in Zimbabwe.
CNN's David McKenzie joins us now live from Johannesburg, South Africa this morning. What are we seeing now? Is there evidence, is there hard evidence from what we have been hearing that has happened on Election Day, some horrible stuff.
DAVID MCKENZIE, CNN CORRESPONDENT: Well, it is horrible stuff, T.J.. We've been hearing and now seeing evidence of a campaign of violence, intimidation against members of the opposition and people who they say are members of the opposition. I've seen photos this morning sent in from Zimbabwe of people with major wounds on their backs, on their faces, on their hands.
They say they were taken from their homes, from the streets, all parts of the country and (INAUDIBLE) marched into the polling stations to vote for President Robert Mugabe, who seems determined to stay into power. There is more and more condemnation coming from across the world, T.J.
HOLMES: A lot of people just don't understand. They don't get it. How in the world can some of this stuff be going on, seems to be evidence of a lot of this going on and he just gets to stay in power? Is anything being done to challenge this election or is Mugabe about to stay in power?
MCKENZIE: Well, all signs point to Mugabe staying in power. He's been in power, T.J., since 1980. He seems to be clinging on to power. He has full control of the media there. This morning, though it's such a crisis time there in Zimbabwe, they're playing cartoons on the television, on the state television.
But we've been hearing these disturbing reports for weeks and months. CNN is banned from reporting in Zimbabwe, so there is a situation that the leaders are calling for change in Africa, even one person who probably should say something is President Thabo Mbeki of South Africa. He's leading the mediation efforts. He said to reporters, that in fact, he's going to wait for an African Union summit in a few days in Egypt before he makes any comment. People might be disappointed across the country and a continent and especially in Zimbabwe, that he might be not doing enough, T.J..
HOLMES: All right. Well, we will wait a few more days. A lot of people sort of there in Zimbabwe, that's not fast enough for them, but David McKenzie from Johannesburg, South Africa for us this morning, thank you so much.
KAYE: Back in the U.S., Democrats turn the page in the run for the White House. Former rivals unite. You saw it right here on CNN. Barack Obama and Hillary Clinton campaigning together for the first time since the bitter primary battle. The two held a unity rally yesterday in aptly named Unity, New Hampshire.
(BEGIN VIDEO CLIP)
CLINTON: This was a hard-fought primary campaign. We have traversed America making our case to the American people. We have gone toe to toe in this hard-fought primary. But today and every day going forward, we stand shoulder to shoulder for the ideals we share, the values we cherish, and the country we love.
OBAMA: I am proud to call her a friend, and I know how much we need both Bill and Hillary Clinton as a party and as a country in the months and years to come.
(END VIDEO CLIP)
KAYE: McCain and Obama are courting Latino voters today. Both are making back-to-back appearances at a Latino conference in DC, beginning at 11:00 Eastern time. CNN deputy political director Paul Steinhauser joins us from Washington. Paul, help us understand why the Hispanic Latino vote is so important this year.
PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: It really is. They make up about 8 percent of the voting electorate, at least if you look at the numbers from 2006. But they can be very crucial in such important states as Florida, New Mexico, Nevada, Colorado and a bunch of others, and that's why this battle for the Latino vote, for the Hispanic vote, is really picking up speed.
(BEGIN VIDEOTAPE)
STEINHAUSER: Call it the battle for Spanish-speaking Americans.
OBAMA: Si sepuede, yes, we can.
STEINHAUSER: President Bush won 44 percent of Hispanic and Latino voters four years ago, helping him win re-election, but only 30 percent of those voters cast ballots for Republicans in the 2006 congressional elections. Put part of the blame on the divisive debate over illegal immigration.
MCCAIN: I think the tenor of the debate has harmed our image amongst Hispanics.
STEINHAUSER: John McCain was one of the leaders in the Senate for reform. His stance hurt him with conservatives. Now he emphasizes border security first.
JUAN CARLOS LOPEZ, CNN EN ESPANOL: Many Hispanics feel that the debate on immigration has been a debate against Hispanics in general and it's made a lot of people register to vote. It's made a lot of people become citizens so they can vote.
STEINHAUSER: But it's not the only issue on their minds.
LOPEZ: They're just like any other voter in America. They care about education. They care about the economy, about health care.
STEINHAUSER: Polls indicate those issues favor Democrats, but Barack Obama is no shoo-in with Spanish-speaking voters. Exit polls suggest Hillary Clinton beat Obama among Hispanics and Latinos in the primaries.
LOPEZ: The first impression was they didn't know who he was and now they're getting to know who he is.
(END VIDEOTAPE)
STEINHAUSER: And where does the battle right now between Obama and McCain stand right now? A new national poll out just last week showed Obama was about eight points ahead of McCain nationally among Latino and Hispanic voters, Randi.
KAYE: So still up for grabs, but certainly both making their cases.
STEINHAUSER: Definitely.
KAYE: Where are the senators -- where is John McCain and Barack Obama, where are they campaigning today?
STEINHAUSER: Well, they're both going to be here in DC to go to that conference. They're speaking separately. But also while they're in DC, they're doing some other things as well. Barack Obama right now on his way to Walter Reed Army Hospital here in the district and he's going to be meeting with soldiers and other troops injured in Iraq and Afghanistan.
John McCain today, he's going to have private meetings with the presidents of Iraq and the Philippines. So they're both kind of making good, you know, making due with their time here in DC before they go back out to the campaign trail.
KAYE: So all this talk of John McCain not working weekends, I guess he's working this weekend.
STEINHAUSER: I think you're going to see McCain working a lot more weekends between now and November 4th. We're working weekends. He should as well.
KAYE: Absolutely. There you go. Paul Steinhauser, good to see you.
STEINHAUSER: Take care.
KAYE: And Josh Levs will have much more on the money angle among the Democrats and we'll be interested to hear what you think. That's coming up in just about 10 minutes.
HOLMES: I want to turn to the Midwest now, battered once again by strong storms. This time, they were deadly. Two teenagers killed in Council Bluffs, Iowa.
We get more now on the story from John Campbell of our affiliate KETV.
(BEGIN VIDEOTAPE)
JOHN CAMPBELL, KETV CORRESPONDENT (voice-over): Tears and anguish on this Council Bluffs street as friends deal with the loss of loved ones. Three people were in this car as the strongest part of the storm rolled through. Samantha Walk lives right in front of where the accident happened.
SAMANTHA WALK, WITNESS: I was in the house and you could hear that girl in the back seat that was still alive screaming and yelling. CAMPBELL: Walk says this tree fell directly on the front seat where two people, one male and one female sat.
WALK: My mom's boyfriend came out here. She started screaming "call 911!" And he started helping.
CAMPBELL: Council Bluffs police tell us the man in the driver's seat had just gotten back in the car after knocking on the front door of this home to pick up friends. As his friends approached the car, the tree snapped. The two in the front seat suffered fatal injuries. A female in the back seat survived, but with injuries.
JAMES DONNELLY, WITNESS: There was maybe this much room between the girl and the car fell, the roof went like this and there was maybe this much room.
UNIDENTIFIED FEMALE: The girl in the back seat was lucky she was still alive, because it barely missed her.
CAMPBELL: After emergency crews were able to get her out of the vehicle, she was transported to Mercy hospital in Council Bluffs in unknown condition.
(END VIDEOTAPE)
KAYE: A deluge in Detroit. A powerful storm dumped about an inch and a half of rain in the downtown area during yesterday's rush hour.
HOLMES: Take a look at this. That's rush hour. Freeways and some service streets flooded. They need boats to get to work. Storms also knocked out power to about 15,000 customers in Michigan over a two-day period.
KAYE: A massive wildfire has prompted California authorities to close about 12 miles of the Pacific coast. The fire has destroyed 16 homes near Big Sur and the road closure has cut off access to some very popular tourist spots. More than 1,000 wildfires burning in California. Most were started by lightning.
HOLMES: Our Reynolds Wolf back with us after spending a good week, really, in that waterlogged area, the Midwest. Reynolds, it seems like every week for the past month almost, something has been going down in the Midwest. They can't get a break.
(WEATHER REPORT)
HOLMES: A lot of you out there might be feeling like the high price of gas pushing you over the edge. Well, it's pushing some drivers over the border, but will they pay a higher price later?
KAYE: And you might call it a snack attack. How a dispute over donuts led to a convenience store confrontation caught on tape.
(COMMERCIAL BREAK)
KAYE: A brief look at some other stories making news this morning. Authorities in Vermont are searching for a 12-year-old girl.
HOLMES: This is Brooke Bennett we're talk about. She was last seen Wednesday morning, disappeared shortly after surveillance video that you're looking at showing her at a store with her uncle. They left and went in separate directions. Bennett's father is desperate to find his daughter and warns people not to jump to any conclusions.
(BEGIN VIDEO CLIP)
JAMES BENNETT, MISSING GIRL'S FATHER: If there's people out there spreading rumors, don't. This is bad enough without that. We don't need it.
(END VIDEO CLIP)
KAYE: Officials believe Bennett was communicating with an unknown person on a MySpace page before she disappeared. They are unsure if the girl was kidnapped.
New details are coming out about the murder of the student body president of the University of North Carolina. A confidential informant told police Eve Carson was kidnapped from her home before she was taken to an ATM machine and robbed. The 22-year-old was later shot and killed. Two men are charged with murder in Carson's death.
HOLMES: Some U.S. drivers are heading south of the border to fill up with cheaper gas.
CNN's Thelma Gutierrez now looks at whether those drivers could end up paying more in repairs.
(BEGIN VIDEOTAPE)
THELMA GUTIERREZ, CNN CORRESPONDENT: The U.S./Mexico border in Tijuana, where Americans spill over for cheap gas.
RICARDO FERNANDEZ, SAN YSIDRO, CALIF.: The savings, it's great, it's great.
UNIDENTIFIED MALE: It's about $1.50 cheaper.
GUTIERREZ: About $3.10 a gallon in Tijuana, as compared to $4.63 on the U.S. side. The total savings to fill a 20-gallon tank, about $30 and that makes financial sense to commuter Ricardo Fernandez, who lives a few miles away in San Ysidro, California. He makes the international run once a week during off hours and doesn't mind waiting in line to drive into Mexico and back into the United States.
FERNANDEZ: Right now, the traffic is not bad to go back. It takes me about an hour, hour and a half.
GUTIERREZ: Sounds like a big hassle, but Fernando says he just makes a shopping day out of it.
FERNANDEZ: I can come shopping, you know, get some groceries and stuff like that and then I'll go back. It's like saving double. GUTIERREZ: A similar story for Pedro Hernandez, who lives in Santa Ana, California, about 100 miles north. He doesn't make a special trip to gas up, but he won't pass up a deal.
PEDRO HERNANDEZ, SANTA ANA, CALIF: Well, we come down to visit relatives and shop around. While we're here, might as well fill up with gas.
GUTIERREZ: His savings today, $40.
UNIDENTIFIED MALE: On this truck, maybe about $70.
GUTIERREZ: Savings, perhaps, but Steven Mazor with the AAA automotive research center says Mexican gas is made with a different formula, which contains more sulfur that over time can actually hurt your car.
STEVEN MAZOR, AUTOMOBILE CLUB OF SOUTHERN CALIFORNIA: The emission control equipment, the catalytic converters, the fuel injection systems and the sensors on your newer car, any car, really, can make it a polluter and even make you fail a smog inspection and then have to spend a lot of money to repair your car because of the effects of the gas.
GUTIERREZ: But Ricardo Fernandez says his truck is running fine for now and making ends meet right now is really all he can afford to worry about.
Thelma Gutierrez, CNN, Tijuana, Mexico.
(END VIDEOTAPE)
HOLMES: Well, your money, your investment, your finances, we've got it all covered for you. All you need to know about all of it on "ISSUE #1." Catch it every weekday at noon only right here on CNN.
KAYE: Oh, you're going to be talking about this next story. A dispute over donuts leads to a convenience store confrontation.
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HILL: We were both talking about getting into a fight, you know, he was going to kick mine and I was going to kick his.
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KAYE: Kick his what? I don't know. We're not sure. Customer Len Hill says the trouble started when he tried to return a package of donuts because they were stale he says. The clerk says Hill was shouting at him. Tempers flared. The clerk got a baseball bat. Next thing you know, he was pounding Hill's pickup truck. The clerk was charged with criminal damage of property.
And we should mention here T.J. that the donuts, they are, the donuts are worth about 50 cents. All of that, 50 cents.
HOLMES: OK. What donuts are worth this? We talked about it earlier.
KAYE: Just the Krispy Kremes.
HOLMES: Just the Krispy Kremes.
KAYE: You decided that.
HOLMES: I will fight somebody over a Krispy Kreme donut.
KAYE: There you go. Even if they're stale?
HOLMES: They're still good stale, Krispy Kremes. I'm sorry. I do not work for Krispy Kreme. I didn't mean to promote, but I eat them a lot.
We're going to be talking about mo money and then no money. Who's got it, who doesn't have it, who wants it.
KAYE: Josh Levs, he has all the answers. Tell us.
LEVS: I probably got enough to buy about four donuts. Here's the question. Take a look at this. Clinton has dropped out of the race and Barack Obama is giving up public financing. Do their decisions make you want to send them money?
KAYE: All right. Thank you, Josh.
But first, Sanjay Gupta has a preview of what is ahead on "HOUSE CALL."
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Hey, guys. We're looking at poison food. A nationwide outbreak has Americans concerned about this. We've got the latest news on that.
And chiropractic care is on the rise. Learn how you can find the best care and also watch out for some red flags.
Then, we're looking at a favorite issue of mine, clinical trials. Researchers are going to great lengths to get patients, but there are things you should know before signing up. We've got it all on "HOUSE CALL," 8:30.
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HOLMES: All right, don't know if you all have heard, but Barack Obama and Hillary Clinton, despite what you've seen in the past year and a half, they are now best friends officially. BFFs, as they like to call it, but there's still the issue of Clinton's campaign debt to deal with.
KAYE: Sure is. Josh Levs has been taking a look at that. Josh, what'd you find?
LEVS: Here's the deal, guys. We were talking here about we've been doing so much reporting on issue number one, the economy, right? So many Americans in debt these days. All of a sudden, you keeping hearing all these calls, send him $2300, send her $2300. Not a lot of people necessary have that kind of money sitting around, but it is the big message you're getting right now from both Democratic campaigns. Not though from the Republican campaign the same way, because John McCain has decided to take public financing.
This for example, when you go to Hillary Clinton's Web site, you immediately see this. She says thank you. She says how she's bonding with Senator Obama now and she calls for contributions to him and he in exchange is doing something pretty similar, thanking Senator Clinton at his site and he offers links to her site. A lot of stuff about money and contributions.
So a lot of people now talking, this debate is on fire on our Web site here on cnn.com, people weighing in on this. And I know you can't see it quite well. I'm just going to tell you quickly, people are jumping and they're saying, hey, I'd donate money to Mrs. Clinton if Obama would drop out of the race. Then this one says this is ridiculous. Clinton was told over and over to give up, but she wouldn't and she kept going and now she has all of this debt. It's hers.
Then a McCain supporter says this is a typical Democratic liberal strategy, spend too much and then expect others to pay for it. What we want to do is open this up to you all, see what you think about this. We're going to encourage you to send us e-mails today, weekends@cnn.com. We want to ask you this -- how do you feel about calls to contribute to Clinton and Obama? This is now that Clinton is out of the race and that Obama has chosen to give up public financing. How do you feel about this, weekends@cnn.com.
Also, you can go to our I-report system. We encourage you to do that, go to ireport.com and let us know there what you think. You can send photos or videos or just your stories. Weigh in on this issue. Some people think this is a great time to start to contribute, that there's a lot they can get out of having a different president. We want to hear from people, all political persuasions. And guys later on in the show and tomorrow we're going to be sharing some of these responses from you about money and the race -- Randi, T.J.?
HOLMES: Josh, you know it's always dangerous when you ask the viewer, how do you feel? When you start the question off like that, woo! Just open it up.
KAYE: Responses like that, though --
LEVS: Some call it dangerous, some call it interesting.
HOLMES: All right, well, we'll let you weed through them. All right, Josh, we appreciate it.
KAYE: A high school prank leaves several students upset. Hear about (INAUDIBLE) in California.
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HOLMES: Well, we've got a yearbook story to tell you about that has parents and students at a California high school a little disturbed here. Someone at the yearbook staff at Charter Oak high in Covina changed the names on a club photo of the black student union.
KAYE: One of the nine students calls the name ghetto names and then the school apparently gave the students stickers with their real names on them to pass out to friends and put over those quote/unquote ghetto names in the yearbook.
(BEGIN VIDEO CLIP)
EVANNE JACKSON, STUDENT: They gave me stickers on the last day of school to pass out to my friends and I thought that he was very embarrassing and I didn't want to pass them out.
(END VIDEO CLIP)
HOLMES: Well, let's give you an example here. The names, one example says Taytay Shaniqua, another called one of the students Laquan (ph), things of that nature. Now the school board president has now apologized, the school board president. And despite some parents' desires, the yearbook apparently will not be reprinted with the correct names in it.
All right, we've seen these stories before, people claiming to see an image of Jesus in a variety of things -- ham sandwich, broken window, cookies, pancakes --
KAYE: Krispy Kremes.
HOLMES: Maybe. It's coming. Here's another one for you. This is a granite slab from Brazil. Owners of a Dallas stone company say the 6 by 10-foot rock has the face of Jesus along with arms and either a belt, a sword, or a book.
KAYE: Yeah, you can kind of see it --
HOLMES: Do you?
KAYE: If you want to see it, you can see it.
HOLMES: Where?
KAYE: Right there in the middle there. You can't see it?
HOLMES: OK. Well, on wholesale, the (INAUDIBLE) slab sells for $1500. The company hopes to sell and donate the proceeds to a struggling church in Oklahoma.
KAYE: Putting the teams together for the Beijing games, this weekend we've got the Olympic trials in swimming and track and field and athletes you'll get to know at the summer Olympics, I'm sure, but let's learn more now about where they will stay.
(BEGIN VIDEOTAPE)
HORROW: This is Rick Horrow for your "Beijing Business Minute" on CNN.
The Olympic Village transforms the landscape in China, nearly 660,000 square meters, over $2 billion spent on what was rural farmland only two years ago. Get these numbers: 3,000 hotel workers, 5,000 volunteers, 5,000-seat cafeteria for athletes, and 20 million items moved into these facilities for 17,000 athletes.
Huh, the world's biggest hotel. By the way, transformed into four-bedroom apartments for the Chinese residents after the game.
Here's the only scare: what to eat. After the toothpaste recall and the health food recall, there were a lot of issues about what's going to happen. U.S. delegations for example, after a 14-ounce chicken breast was tested so positive for steroids, that it would have disqualified athletes. It's thinking of some other kind of deal to get their food. The answer: eat out.
I'm Rick Horrow.
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HOLMES: Oh, there's a brain tumor outbreak in a small Missouri town. Health officials rule out the water. Now, they're looking at another possible source behind these tumors.
KAYE: But first, "HOUSE CALL" with Dr. Sanjay Gupta starts right now.
