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CNN Saturday Morning News
Senate in Session to Approve a Massive Housing Bill; Senator Barack Obama in London; Emergency Landing in the Philippines Caused By Nine-Foot Hole; Is the Economy Getting Better?
Aired July 26, 2008 - 09:00 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 CNN SATURDAY MORNING. I'm T.J. Holmes.
ALINA CHO, CNN ANCHOR: Yes, you are. Good morning. Good morning, everybody. I'm Alina Cho. Betty has the weekend off. Thanks for starting your day with us.
HOLMES: Well, Senator John McCain these days is feeling a bit left out.
CHO: Yes, he is and saying so in his radio address.
HOLMES: He's trying, look at me. Don't know if it's working but of course, a lot of attention being given to Barack Obama the past week. He's been on that world tour. Today, he's in London. You'll hear from him and also from John McCain.
CHO: Who said I'm starting to feel a little left out. And another big talker, this morning, a jilted bride gets redemption. A jury tells her ex-fiance to pay up big time. You're not going to believe how much money this woman got. Did she or did she not get to keep the ring? We're going to tell you.
HOLMES: I don't know about this precedent being set here. I don't know. We'll get into this. I want to see this.
CHO: A promise is a promise.
HOLMES: We'll get into it later.
CHO: We'll fight over it. But first, help for homeowners facing foreclosure. The senate meeting in a rare Saturday session, at this hour.
HOLMES: They're expected to approve a massive housing bill. CNN's Kate Bolduan in Washington where they decided to work on a Saturday. It must be something serious going on.
KATE BOLDUAN, CNN CORRESPONDENT: It must be something special, T.J.. Yes, I believe that they're actually just getting under way right now in the Senate. Just being called to order as we speak. What they're there for is this housing bill. It's designed to give struggling homeowners a break and boost confidence in the housing market. It's been a long road getting here. We've been talking about it for quite a while, this housing bill. And it's all led up to what's expected to be the final vote during this rare weekend session for Congress.
(BEGIN VIDEOTAPE)
BOLDUAN (voice-over): Senators working overtime this week to push through a massive housing bill. A Democratic proposal enjoying broad Republican support aimed at offering homeowners some relief amid record numbers of foreclosures across the country.
SEN. HARRY REID (D), MAJORITY LEADER: It's damaged neighborhoods, devastated local governments and state government worth of tax revenues and it's made the banking industry very, very shaky.
BOLDUAN: The bill includes up to $300 billion in government guaranteed loans to allow homeowners facing foreclosure to refinance to more affordable mortgages. The bill also gives the government new authority to prop up the giant mortgage firms Fannie Mae and Freddie Mac. There's about $15 billion in tax breaks, including a tax credit of up to $7,500 for first-time home buyers.
And there's $4 billion in grants to help communities fix up foreclosed properties. This portion was a sticking point with the White House. The Bush administration concerned the grants were more of a bailout for lenders than help for homeowners but in the end the president reversed his veto threat.
DANA PERINO, WHITE HOUSE PRESS SECRETARY: So we had to make a hard choice and the choice that we made is that the President will accept Secretary Paulson's recommendation and sign the bill.
(END VIDEOTAPE)
BOLDUAN: White House spokesman Tony Prado told me yesterday that President will sign the bill into law as soon as he gets it. But first, the vote. It's expected in just about two hours from now -- T.J..
HOLMES: And Kate, help us understand, nothing gets done quickly, of course, we know, and there's been a lot of back and fort about the bill and the veto threat here. And a lot of negotiation. Well this couldn't wait until Monday? Why do they think now, we got to take action and we better get in there on a Saturday.
BOLDUAN: It's a bit of a procedural move, that's why we're here on Saturday. There was one senator, they were hoping to get it done before the end of the week. There's one senator, Republican senator Jim Demint. He was pushing to have an amendment that had something to do with Fannie Mae and Freddie Mac and their ability to lobby and he was trying to ban them in the future and they didn't allow him to add the amendment to the bill.
So, he made this procedural move that pushed them all the way into Saturday. It has something to do with 30 hours of debate. But that's why, they said, you know we're going to stick here Saturday and we're going to get it done this weekend.
HOLMES: Did I hear that right? It's one guy's fault that they're there on a Saturday.
BOLDUAN: I did say that.
HOLMES: All right. I'm sure he's a favorite up there right now. Kate --
BOLDUAN: Easy, T.J..
HOLMES: All right. Kate Bolduan for us in Washington. Thank you so much.
CHO: It's also a very public way to show to the American people that this is very important.
HOLMES: Yes. Very important.
CHO: Also today, Barack Obama wrapping up his week-long overseas tour. Right now, he's making a final stop in London. Today, he met with British Prime Minister Gordon Brown and former Prime Minister Tony Blair. Remember him?
HOLMES: Yes. And then it was off to the House of Commons but while at 10 Downing Street with Gordon Brown, Obama spoke about his trip and his hopes for cooperation in Afghanistan.
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: I have already committed an increase in American troops in Afghanistan. Obviously, we'd like some of that burden shared. I think it's going to be necessary in order for us to complete the job that needs to be done.
Just as important as it's going to be rebuilding the infrastructure of that country in some cases building infrastructure for the first time, creating greater capacity in the Karzai government, training police, that's all going to require a significant investment of resources. And my hope is that not only are we putting more resources into the process, we are also coordinating those resources more effectively.
(END VIDEO CLIP)
HOLMES: You will remember that Obama started his week long tour with a stop in Afghanistan. When he's done in London today he's heading home, going to Chicago.
CHO: Well, Obama has been trying to gain the support of ex- patriots, those are Americans living abroad and analysts say their vote could be critical in the presidential race. Well, the ex-pats we spoke to say they've never felt more compelled to get involved in politics.
(BEGIN VIDEOTAPE) CHO (voice-over): The Gronckis are Americans living in Paris. Living abroad, they're known as ex-pats and they're as comfortable here as they are uncomfortable about what's happening at home.
LESLIE GRONCKI, EX-PATRIOT LIVING IN PARIS: Makes me sad quite frankly. We've only been gone from the United States for 2 1/2 years and it feels like the United States is unraveling in many respects.
CHO: The war in Iraq, the faltering economy, her children's future, all reasons why this self-described non-political mom is getting involved in this year's presidential election.
GRONCKI: You don't get to complain about something unless you're doing something to fix it. And as a parent now I really appreciate that sentiment.
CHO: Enter Mammas for Obama, the new Paris chapter. An organized show of support for the Democratic candidate.
KIM PETYT, MAMAS FOR OBAMA: It's interesting living from afar because you can see how America is perceived and it's -- I don't think it's how Americans who are living in the States think they're perceived.
UNIDENTIFIED FEMALE: You can be an American even if you don't live in America.
CHO: Ex-pats are a critical voting block. Six million people including military personnel and they're voting with their pocketbooks too. So far, overseas fund raising has raked in more than $1 million for Obama and more than $200,000 for John McCain. Ex-pats even send delegates to the National Convention.
Experts say they've typically voted Republican, but an unpopular war and sitting president have turned the tide. This year, there are indications overseas Americans may be voting Democratic.
MARGO MILLER, DEMOCRATS ABROAD: We have active chapters in over 70 countries around the world. We have doubled our memberships since January.
UNIDENTIFIED FEMALE: Wow, that's great.
CHO: These mammas for Obama are trying to teach their kids a little about the political process. Some get it.
UNIDENTIFIED MALE: If you want someone to be president you got to vote.
CHO: Others, not yet.
UNIDENTIFIED MALE: I am voting for Obama because he's against the war.
CHO: And the youngest, still don't care.
UNIDENTIFIED MALE: The President rides in a super fast jet.
CHO: Leslie Groncki cares deeply, even from 3,500 miles away.
GRONCKI: We will return to the United States sometime and I'll have a greater stake in the system there. I have two small children and it strikes me that this is a very important election.
(END VIDEOTAPE)
CHO: By the way, little Trip said the president has a super fast jet, in case you missed it. But both campaigns say they're fully aware of the power of the ex-pats vote. For its part, the group Republicans abroad has more than 50 chapters around the world and they are planning to hold events in Mexico and Canada this just as Obama, T.J., wraps up his trip overseas.
HOLMES: He is wrapping it up now and while he has been away, John McCain pretty much had the country to himself and he's trying to take advantage of that. He's taking a swipe, listen to this one he is taking at Obama, during his weekly radio address.
(BEGIN VIDEOTAPE)
VOICE OF SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: I'm John McCain and this week the presidential contest was a long distance affair with my opponent touring various continents and arriving yesterday in Paris. With all the breathless coverage from abroad and Senator Obama now addressing his speeches to "the people of the world," I'm starting to feel a little left out. Maybe you are too.
Back here in the country that we're competing to lead, a lot of folks were having trouble trying to square Senator Obama's multiple positions on the surge in Iraq. First he opposed the surge and confidently predicted that it would fail. Then he tried to prevent funding for the troops who carried out the surge.
But now that it's clear that the surge has succeeded and brought victory in Iraq within sight, Senator Obama can't quite bring himself to admit his own failure and judgment.
Instead, he commits to even greater error of insisting even in hindsight he would still oppose the surge. Even in retrospect he would choose the path of retreat and failure for America over the path of success and victory. That's not exactly my idea of the judgment we seek in a commander in chief.
(END VIDEO CLIP)
HOLMES: And please be sure to tune in to a very special CNN "LATE EDITION" tomorrow. Our Wolf Blitzer will have more with John McCain. You'll also be hearing from Barack Obama at the Unity Conference happening in Chicago. That's the "LATE EDITION." It comes your way tomorrow at 11:00 Eastern.
CHO: Right now in the Philippines, investigators are taking a very close look at a nine-foot hole in the side of a Qantas jumbo jet. That hole is the size of a small car. A terror incident pretty much ruled out. Take a look at this dramatic video shot by passenger Rob Henshaw. The plane carrying nearly 350 passengers made an emergency landing in the Philippines yesterday after the hole opened up in the fuselage.
Rob talked to us live earlier this morning. Take a listen.
(BEGIN AUDIOTAPE)
VOICE OF ROB HENSHAW, PASSENGER: It was such a quick event. We had, you know, a large explosion and it really rocked the plane. It actually lurched to the left where the left wing went down a bit. There was a really strong wind. There were lots of dust and, you know, papers and things flying around. There was the hostesses, stewardesses actually running to their seat on the captain's orders.
And you know, within a short span of time we couldn't breathe and the oxygen masks sort of flew out of the ceiling and we didn't know what was happening. We really didn't know what was happening. We just sort of thought that, you know, something major is going on and you could hardly breathe and the ears started getting painful. It was very traumatic.
(END VIDEOTAPE)
CHO: It's a good thing they didn't know what was happening at the time. The investigation, of course, just getting started, but Australian transportation officials say it appears at this point that a section of the fuselage separated in the forward cargo compartment. We'll be watching that story very closely.
HOLMES: Another one this morning we're watching about shark attacks in the U.S. This happened thousands of miles apart.
CHO: Two of them.
HOLMES: Yes.
CHO: One of the sea creatures described as mammoth. A 16- footer, we'll have more in a moment.
(COMMERCIAL BREAK)
HOLMES: All right. A couple of apparent shark attacks to tell you about. In Hawaii officials say a woman was snorkeling off Macaca, when she was apparently bitten by a 16-foot shark. The paramedics say the woman made it to shore on her own but then she needed some help from bystanders.
(BEGIN VIDEO CLIP)
ANTHONY CHAPMAN, AIDED SHARK VICTIM: When I was putting on the tourniquet she said, you have to release this after every five minutes. And I kind of gave her a look like, how do you know that? You know, she informed me she was a doctor.
(END VIDEO CLIP)
HOLMES: Well, it's good to have a doctor to treat herself in case she ever has an issue. Life guards ended up posting warning signs out and then closed the two-mile stretch of beach. We turn to Florida where a teenager's foot was bitten by a shark. He was surfing with friends apparently.
Officials say it as more than the average nip at the heel. However, this 17-year-old underwent extensive surgery, needed some 30 stitches, I should say. This incident happened off New Smyrna Beach, about 15 miles south of Daytona Beach. This is the 15th shark bite they've had in that county this year.
CHO: Wow.
What are the odds? After weeks of negative reports, some positive news this week about our economy. Oil and gas places actually fell. Orders for big ticket factory prices for June were up. And new home sales fell less than expected. So, does it mean the economy is getting better?
Well, here to talk about it is Neil King. He is the energy reporter for "The Wall Street Journal". Hey, Neil. Good morning to you. So a couple things of things happening. The Dow sees its worst drop in a month on Thursday. 283 points. Ford posts its worst quarterly earnings report in its 105-year history.
But as you well know if you watched very closely, oil and gas prices are inching lower and lower. I think gas is at $3.98, a relative bargain. So, what's going on. Is this the beginning of a trend? Are we going to see more pain?
NEIL KING, JR., ENERGY REPORTER, WSJ: Well, that's the big debate. The signs really are starting to show that maybe we've seen the worst. Oil has come off from about $147 earlier this month, we're now at about $123 a barrel. Gas prices as you mentioned are coming down. So, there could be some relief. That could trickle through the economy.
On the other hand, there's still some pain coming up that could be substantial particularly in New England when people face very large home heating bills. Could be staggering.
CHO: Yes. And let's talk about this. Looking ahead to fall and winter, of course, we're at the height of summer, but fall is not far away. How is this going to impact home heating costs?
KING: Well, what they're saying now in New England, you listen to various governors or some of the senators there, they're saying that the average homeowner could be facing a bill of about $4,000 which would be up 70 percent or so over last year.
So, if you add that to the 2,000 or so that a lot of these people are spending annually on gasoline, you're talking about $6,000 a year on various fuel costs. That's a large portion of a person's income. CHO: I mean there's some obvious sort of tips like put on a sweater if it gets cold, but beyond that in terms of news you can use, what can residents do to sort of, you know, help themselves in the face of higher home heating oil costs?
KING: Well, of course, the obvious things like insulation and as you said, turning the thermostat down. There's a lot of talk already in Congress and in the various states of providing assistance for people in this front. They've done that in the past, especially over the last couple years.
And there's also reports of sales of, you know, various kinds of wood burning stoves and things like that being up in New England. I mean there are obviously other ways to heat houses but not necessarily very effective way in some cases.
CHO: All right. In the meantime, let's enjoy the summer, shall we.
KING: Let's do that.
CHO: Neil King, energy reporter for "The Wall Street Journal." Neil, thank you.
KING: It was a pleasure.
HOLMES: Well, some get ready for the worst case scenario, hurricanes blowing ashore.
CHO: That's right. We saw just recently with Dolly in Texas. So are you prepared for the next one?
(COMMERCIAL BREAK)
HOLMES: The Coast Guard is slowly reopening the Mississippi River for shipping traffic. There was a big oil spill near New Orleans that caused some ships to stay anchored for two days. Investigation into the tanker collision that started this whole thing is going on right now. The cleanup also going on and some of the cleanup even having to be done by hand.
(BEGIN VIDEO CLIP)
SR. CHIEF PETTY OFC. STEVE CARLETON, U.S. COAST GUARD: They actually will take them, put them on the surface of the water and work them across the surface because the oil is floating up on the top there and when they get dirty they'll bag them up and then they'll cart them off for disposal. So, you see it's very labor intensive.
(END VIDEO CLIP)
HOLMES: Well, the Coast Guard is choosing which ships to let through based on economic importance. Petroleum tankers were the first to get the go ahead.
CHO: Well. heavy rain across several parts of the nation today including west Texas, which could see some flooding. We're talking about the four corners in some cases and the remnants of Dolly.
REYNOLDS WOLF, CNN METEOROLOGIST: Absolutely. Yes, you're right. We're watching parts of the four corners but we're also keeping our eye on the northern plains where we could see some strong storms into the afternoon. But only a slight risk.
You're right, Alina, the place we're watching will be the four corners including parts of west Texas where we have what is left of Dolly. Already some scattered showers in the Rio Grande Valley and back south of Albuquerque. Could see some heavy rainfall in El Paso and it is going to be something that's going to stick around through a good part of the day.
Into parts of central Texas, in Austin, take a look at the shot we have for you this morning. You might deal with some rain there later on. Looks good for the time being, partly cloudy sky. Should be a fantastic day if you get out to Barton Springs early. Barton Springs pool is a great place to play. Also it is a spot that is home of the Barton Springs salamander. Actually, on the endangered list, which is really a shame because they are so tasty.
Let's send it right back to you, guys, at the news desk.
CHO: Did he say tasty?
HOLMES: He did.
WOLF: I'm just teasing. Just teasing. They are cute little salamanders that actually live in Barton Springs. They are the neatest thing. And they have actually started coming back in their population.
CHO: Sorry, all I heard was tasty.
WOLF: It was just a joke. It's a Saturday morning. See. There you go, guys.
HOLMES: That's what happens when we give him too much time during weather.
WOLF: It happens.
CHO: Thanks, Reynolds.
WOLF: All right. Guys.
HOLMES: Reynolds, we appreciate it. Hurricane Dolly, of course, battered the south Texas coast. People there had some advance warning but as CNN's "OPEN HOUSE" host Gerri Willis tells us, it's never too early to be prepared.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Hi, T.J..
Hurricane season is here and whether or not you live in an area that has been hard hit by storms in the past, it's important to be hurricane ready. First off, secure your garage. 80 percent of residential hurricane damage starts with wind entering through garage doors. Look for a sticker on the inside of your garage door. It gives you a pressure reading.
If you don't see a sticker chances are you should reinforce your own door and if the storm is on the way, reinforce windows as well. Forget about taping windows. Consider storm shutters or plywood shutters but make sure the plywood is at least three quarters of an inch thick. And if you live in an area that is prone to storms, consider impact resistant windows. These windows are specially designed to withstand flying debris.
Most important, take stock of your stuff. Go from room to room making a list, taking pictures of all of your furniture and personal belongings. Make sure to record the make and model of electronics and head to know your stuff.org for more information from the Insurance Information Institute.
Coming up on "OPEN HOUSE," spotting hidden fees and what to do about them. Buy a house, get a car, extreme incentives in the shaky housing market and we're talking affordable air fare with an industry expert. That's "OPEN HOUSE," 9:30 a.m. Eastern -- T.J.
HOLMES: All right. Thanks as always to our Gerri Willis. And as she said, "OPEN HOUSE" just minutes away. You can also get more valuable tips from Gerri on "ISSUE #1." that's our daily look at the economy and your finances that comes your way weekdays at noon Eastern, right here.
CHO: T.J. and I have been having a friendly argument about this story. Having second thoughts about getting married? Backing out could be expensive. The woman on the left there, well she got dumped and now her former number one squeeze has to pay the price.
HOLMES: You got to be kidding me.
(COMMERCIAL BREAK)
CHO: Love this story.
HOLMES: I'm upset.
CHO: I know you are.
HOLMES: I mean, come on.
CHO: Listen, I'm saying a promise is a promise.
HOLMES: Not necessarily. Look, a lot of people get dumped before their wedding. It happens. Sorry. Men and women, it happens. That's what you're getting yourself into. Do you really have a right to sue, Alina?
CHO: Well, you know, that's the big question. Josh Levs is here with more on that. Two days before the wedding, he leaves a good-bye note and a $5,000 check.
HOLMES: That's more than a lot to get.
CHO: Give me a break.
HOLMES: That's more than a lot to get.
JOSH LEVS, CNN CORRESPONDENT: But I mean who all of a sudden has to grab that responsibility. I know, I think I'm kind of with T.J.
HOLMES: Thank you. We never agree.
LEVS: I know. You know what, we need to hold on to this video because you and I just agreed about something. This is history in the making, people.
HOLMES: Yes.
LEVS: All right. Let's get to the story. It sounds outrageous. How can a broken engagement end with a financial judgment? Plus, she kept the ring, people.
HOLMES: Oh, my.
LEVS: Diana Davis of our affiliate WSB explains Rosemary Shell won big about against her former fiance.
(BEGIN VIDEOTAPE)
ROSEMARY SHELL, JILTED BRIDE: I am thrilled to death.
DIANA DAVIS, REPORTER, WSB: Rosemary Shell and her lawyer are all smiles.
SHELL: This has been the most difficult thing that I've ever had to do. And I think justice had been served.
DAVIS: A stone's throw away her former fiance Wayne Gibbs scowling and tight lipped. The jury of six men and six women says he has to pay Mrs. Shell $150,000 for promising to marry Shell and then dumping her. Shell gave up her $80,000 a year salary in Florida, moved here for a job that paid $50,000 less, only to be jilted before the "I dos."
SHELL: Financially, he destroyed me. Just a lot of ways. And people shouldn't be allowed to do that. And hopefully he'll think twice before he does it to someone else.
DAVIS: Shell's lawyer says it's not a case of a woman scorned but a broken contract.
LYDIA SARTAIN, ATTORNEY: He never intended to marry her, but it cost her a tremendous amount financially.
DAVIS: Outside the courthouse, shock and awe from both men and women.
UNIDENTIFIED FEMALE: To see that somebody could be sued for -- for dumping someone is outrageous.
DAVIS: Juror Delitha Smith said she didn't want to pay Shell the $150,000 grand, but gave in to the other jurors.
DELITHA SMITH, JUROR: He done paid her a bundle along with the engagement ring that was really worth a lot of money that she could have hawked.
(END VIDEOTAPE)
LEVS: All right, well, Wayne Gibbs -- I was just looking at -- your opportunity to weigh in here. The deal now is that Wayne Gibbs might appeal, but we want to know what you think. Is financial compensation justified? So, we're setting this up for you right now. If an engagement is broken, is financial compensation justified?
E-mail your comments to weekends@cnn.com. Be sure to include your full name, also, let us know where you live, guys. We're going to be reading a bunch of this tomorrow.
Also later this afternoon on CNN SATURDAY, our legal experts are going jump on this, take a closer look at this. I am so excited for Richard and Avery to tackle this. That will be in the 3:00 hour. We're going to be ...
CHO: Hey, there might be some people who might not want to leave their full name. I mean, that's, you know.
HOLMES: I'll leave mine because I'm ...
LEVS: We've already weighed in.
HOLMES: I'm writing in.
LEVS: Yes.
HOLMES: That is -- I mean, it's sad. It's unfortunate.
CHO: She's selling the ring, she's selling the ring.
HOLMES: OK.
LEVS: And he's already paid a price, and we can see that.
CHO: OK, all right, OK.
LEVS: And we'll see what you think, weigh in.
CHO: I'm willing to be swayed, I'm willing to be swayed.
We're going to be -- we're going ...
HOLMES: "OPEN HOUSE," Gerri Willis. Let's get out of here, let's just go.
