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CNN Saturday Morning News

Experts Unsure if Alex Will Hit Oiled Gulf; U.S. Meets Ghana for Chance at World Cup Quarterfinals; Senate Set To Begin Kagan Confirmation Hearings

Aired June 26, 2010 - 06:00   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. Welcome to this CNN SATURDAY MORNING, a special live edition. I'm T.J. Holmes, coming to you live this morning from New Orleans, where it is 5 a.m.

Let me say hello as well to Kate Bolduan, back in Atlanta. Good morning to you, Kate.

KATE BOLDUAN, CNN ANCHOR: Good morning, my dear.

And I am Kate Bolduan here in Atlanta, holding down the fort while T.J. is doing some hard work. Here in Atlanta, it is 6 a.m. Thank you so much for starting your day with us.

Let's get right to it. President Obama is waking up in Canada this morning. He'll head to the G20 summit later today in Toronto. Leaders of the world's richest countries meeting to talk about how to keep the global economy growing. We'll take you live to Canada.

HOLMES: And also, here in New Orleans, there is a major development in this whole Gulf oil disaster, now on Day 68. There is a storm a'brewin out there in Gulf possibly. We're keeping our eye on this, because just an hour ago, the National Hurricane Center said, in fact, we have our first named storm of the Atlantic hurricane season. Just got this word about 60 minutes ago from the hurricane center.

The storm's name is Alex. It is headed this way, towards the Gulf. We know it's coming, but we still don't know exactly where it's going. We're going to be giving you all the latest developments and the scare that we have now here about possibly have to shut down some of this -- this -- this -- this oil containment, to possibly shutting down some of this response because this hurricane, or possibly this hurricane, a hurricane is on the way.

Our Reynolds Wolf going to be along in just a moment to give us the very latest on this, so far the forecast track of where this thing is going.

But let me hand it back over to Kate, give you some of the headlines of the morning.

BOLDUAN: Let's get a check of your top stories here.

Former Vice President Dick Cheney is spending the weekend in the hospital. He told his doctors yesterday that he wasn't feeling well. They admitted him to George Washington University Hospital for further tests. He has a well-documented history of heart problems. We'll have a live report on the former vice president next hour.

And a major overnight fire destroys part of a fruit-packing plant north of Sacramento, California. The company is known for gourmet fruit baskets and boxes. Managers say they'll do everything they can to get the workers back on the job, realizing so many rely on their paychecks right now in today's tough economy. The company has been in business for a century.

And Arizona Governor Jan Brewer says most illegal immigrants cross the border to smuggle drugs. She says drug cartels are taking control of the operation that traffics in humans, but a labor union representing 20,000 Border Patrol agents says that's clearly not the case, they say. The governor isn't backing down though.

(BEGIN VIDEO CLIP)

GOV. JAN BREWER (R), ARIZONA: We all know that the majority of the people that are coming into Arizona and trespassing are now become drug mules. They're coming across our borders in huge numbers, that the drug cartels are taking control of the immigration -- illegal trespassing that we are seeing in the state of Arizona, and that are coming through and going through all of America.

(END VIDEO CLIP)

HOLMES: Well, back here live in New Orleans, the concern certainly here and along the Gulf is trying to stop the oil from leaking and also trying to save many of the shores.

Well, we have a new concern this morning that has probably jumped up on the list of priorities right now. That is the weather. The National Hurricane Center has started tracking what is now Tropical Storm Alex. This is off the coast of Honduras right now. Hurricane planes -- hurricane-hunter plane -- you hear about these things. Well, it has started tracking the progress of this storm. They're going to gather the latest information on this storm and give it more to us throughout the day and throughout the weekend.

Any kind of storm could be a huge problem, because it could essentially shut down everything that's going on in the Gulf right now as fault as -- as far as the oil containment, as far as the oil cleanup and also the efforts to stop the leak. Worse yet, it could spread this misery.

We don't exactly know where the storm is going to go just yet. But depending on where it goes, it could push the oil one direction or another, could push it further inland, could push into some other areas of Florida that haven't been touched just yet.

Experts say right now they can't accurately predict the course of the storm. But so many different tracks, so many possibilities of where it could go.

Let me go ahead and bring in my buddy Reynolds Wolf, keeping an eye on this weather. Reynolds, we talked about this when the hurricane sent -- season came along, the possibility of something like this. And here we go, we have the possibility.

So tell us, right now, still a little early, but where do they think this thing is going to go?

REYNOLDS WOLF, CNN METEOROLOGIST: Well, the latest that we have right now, T.J., is that the storm is just -- as you mentioned, off the Yucatan peninsula. It just started off just -- let's see, towards parts of the -- the Antilles, drifted its way across the Caribbean, kind of fluctuated in strength. Now, as you mentioned, it is right off the coast of Belize and Guatemala and the Yucatan peninsula.

Where we think it's going to go, is it's going to continue more of a trajectory to the west and to the northwest.

Now, a couple things to keep in mind. It is in an area of very warm water, which is very conducive towards strengthening. That's the bad news. The good news is that it's also going to be moving over land. As it moves over land, what it is expected to do is weaken. And the reason why is because it'll be away from its primary power source, that warm water in the Caribbean and eventually into the Gulf.

However, one thing you have over the Yucatan peninsula is very, very flat land. It's kind of like a parking lot. If it crosses over that and makes it out into the Gulf of -- of Mexico it is going to move into an area where you have two things that are conducive for strengthening. One thing will be very warm water. It is like jet fuel to these storms.

The second thing it's going to do is encounter minimal shear. Shear -- that happens to be really strong upper-level winds. If you have really strong shear, what it can do is actually rip these storms apart.

Well, it looks like that's not going to be the issue. If the storm punches into the Gulf of Mexico, that's where we get this cone of uncertainty, where there's a chance the storm could veer a little bit closer to the oil slick, perhaps go a little bit more to the west. Could make landfall somewhere in Mexico, perhaps even the Texas coastline or even parts of -- of, say, Louisiana, Mississippi, even Alabama.

Still though, there is a lot of uncertainty. That is the key phrase this morning. And as this moves out into the Gulf of Mexico, if it can retain a little bit of its structure, retain some power, it may become, again, a fairly strong tropical storm.

We've got a couple of things to consider though, T.J. We've got good news and bad news with this particular storm. The good news would be that with the enhanced wave action, it could help break up some of the emulsified oil. The bad news, though, it's going to hamper all the collection efforts. And there's no telling where it could push the oil thereafter. So it's a thing we have to watch very carefully. But obviously "uncertainly" the key phrase this morning.

Let's send it back to you, T.J.

HOLMES: Yes. And Reynolds, like you said there, the -- the issue is they would have to shut everything down. And right now, they're starting to -- to collect on these ships more oil. They're starting to siphon up and collect more than they ever have, so some of those efforts are just now starting to get to the -- the best -- the best form they have ever gotten to, and now they might have to shut all this down.

Reynolds, thank you.

WOLF: You bet.

HOLMES: I know you're going to keep us updated on that.

And also, to our viewers here, Admiral Thad Allen, who is in charge of the efforts out here in the Gulf, he says they would have to start moving workers out of the Gulf. They would have to do this days ahead of time to get them away from those ships and get them away from those rigs to get everything cleared out to a safe area. And they might have to start doing that maybe as early as today. We're expecting updates.

Again, the planes are up in the air checking this out. They're just trying to figure out exactly where this storm might be going.

Also, we have seen so many stories here about people being adversely affected by this oil. It's one thing, it washed up on your shores. It hurts the economy here. It hurts the environment. So many people though, literally, are losing their livelihoods.

Listen now to the story of one group, one organization, one business that's been in business for years now. They're used to making millions of dollars every year. But just in 60 days, they have shut down because of this oil disaster.

(BEGIN VIDEOTAPE)

PATRICK FEAY, CO-OWNER, AMERIPURE OYSTERS: On a typical Monday morning here before the spill, I'd open that door and find 800 to 1,000 sacks of oysters. To be reduced to this in a matter of 60 days because of something we have no control over, it's very sad. Very sad. What can you say?

HOLMES (voice-over): This was one of the largest post-harvest processing plants in the Gulf. The co-owner, Patrick Feay, says last year, the company did $8 million in sales. But the oil spill in the Gulf has forced the company to cease operations, a move that cost 48 employees their jobs.

FEAY: They're part of your family, and you have to tell them to go away.

ANDREW STEWARD, FORMER OYSTER SHUCKER: When it come back around, I'll probably be too old (INAUDIBLE). So it hurt dearly (ph). It hurt. I can tell you that. It really hurt me. HOLMES: Andrew Steward has been shucking oysters since 1958, the last seven years spent behind this table.

STEWARD: And nobody going to hire a man of my age. A youngster, he got a chance. My chances is over with. If it don't come back soon, it's all over for me.

HOLMES: Ashley Gibson is a single mom with three children. She worked here for seven years and is angry with BP.

ASHLEY GIBSON, FORMER OYSTER WORKER: I wonder from day to day how I'm -- how I'm going to take care of them and how I'm going to make off the money that I'm getting, how -- because, I mean, it's right around school time. I have school stuff to buy and everything. So I'm trying to figure out all that.

HOLMES: But it wasn't oil that directly impacted the oyster harvest and shut this facility down.

FEAY: We haven't seen oil on any oysters since this spill began. Not a -- not a drop. Not a cent. Nothing.

What caused it is, because of the effects of the spill, because of the multiple harvest-area closures and because so many boats have now been retained by BP to help fight the spill, which we understand, we -- our -- our ability to procure oysters and satisfy our business footprint is taken away from us.

HOLMES: Many of the workers laid off filed claims with BP and quickly got compensation checks. A skeleton crew will continue to clean the plant and maintain the pasteurization tanks, a process patented here.

But now, the 7,500-gallon tanks are bone dry. Feay hopes one day soon, he'll be able to get the family of workers together again and back to work.

(END VIDEOTAPE)

HOLMES: Now, he does not know when that day might be. Again, just one of many stories here of business that have literally been at it for years and some over generations, having to shut down just in a matter of days because of the Gulf oil disaster.

And you heard him right there, there's no oil on any oyster. That's not the problem. The problem is that so many of the harvesting areas, the waters have been shut down because of the fear of oil and also, quite frankly, just because of the psychological effect this is having on the Gulf. A lot of people just not anymore buying the seafood; a lot of people not coming to the area to eat the seafood anymore. It's not a matter of anything being covered in oil.

But again, before I hand it back over to you, Kate, in the studio, want to remind our viewers, in fact, today, just an hour ago, we're hearing about the first named storm of the Atlantic hurricane season, and it is headed towards the Gulf. Don't exactly know where it's going to go yet, but it is on the way, causing new fears about what's going to happen now on this Day 68 of the Gulf oil disaster.

We are here live in New Orleans. We'll continue here throughout the morning. But for now, I'm going to hand it back to you, Kate, in the studio.

BOLDUAN: Thanks so much, T.J.

So uncertain, and now even more uncertain with all -- with the tropical storm in -- in -- in the Gulf. We'll definitely keep tracking. You're doing a great job down there.

So you're waking up this morning, going -- heading down for breakfast, like I was. Getting a little cereal. Well, listen up: a huge recall from cereal manufacturer Kellogg this morning. The company is recalling 28 million boxes of some of its most popular brands, including Corn Pops, Honey Smacks, Froot Loops and Apple Jacks. The potential for serious health risks -- good news here -- is low. But an unusual flavor and smell in the lining of the boxes could cause nausea and diarrhea.

So straight ahead, the U.S. gets ready to face the team that brought down their last World Cup games -- brought their last World Cup games to an end. We're live in South Africa with a preview of today's big matchup with Ghana, right after this.

(COMMERCIAL BREAK)

BOLDUAN: Well, who can forget that moment? You're watching right now some reaction to the most talked-about goal in U.S. soccer history. Landon Donovan's last-minute strike turned us into a nation of believers. I was definitely watching.

It also sent Team USA into the knockout stage, and an epic grudge match against Ghana, with whom we have some serious unfinished business. Ghana eliminated Team USA during the last World Cup four years, and beating them won't be easy.

Ghana is the last African team standing at the first American World Cup. They'll have -- they'll have the entire continent in their corner.

Pedro Pinto joining us from Johannesburg with a preview of this epic game this afternoon.

Hey there, Pedro.

So there vuvuzelas will be deafening today, I can only imagine.

PEDRO PINTO, CNN INTERNATIONAL SPORTS CORRESPONDENT: You're absolutely right.

You know, I had a chance to watch Ghana's last group, and their fans have really been the best I have seen in this competition -- dancing, blowing the vuvuzelas, of course, playing the drums -- everything that you would expect from a group of fans supporting an African nation. It's a pity that for Africa, only one of the six teams that are competing in this World Cup made it to the round of 16.

But let's talk about the United States. It's a huge day for U.S. soccer. They're going to try to make the quarterfinals of the World Cup for the first time since 2002. They've been great in the group phase. You know, I think they -- they were really unlucky against England. They had a great game. Then they had a couple of goals disallowed in this tournament against Slovenia. Also against Algeria. And then that goal that you were talking about Landon Donovan made him an American hero.

I think (AUDIO GAP) this.

The United States, as you mentioned as well, Kate, will be trying to get revenge (AUDIO GAP) Ghana back at the 2006 World Cup in Germany.

The United States did win their group, and that happened for the first time in a World Cup since 1930. I have been to their camp here (AUDIO GAP)

BOLDUAN: Clearly, we're having some technical difficulties there. We'll get back to Pedro a little later. So we're going to move on right now.

So, one year after the King of Pop's tragic death, we look back on his legacy. And we'll have the latest developments on the lawsuit just filed in that case.

We'll be back right after this.

(COMMERCIAL BREAK)

HOLMES: Well, welcome back to this CNN SATURDAY MORNING. T.J. Holmes here reporting to you live this morning from New Orleans, where there are new concerns on this Day 68 of the Gulf oil disaster.

And the concerns right now don't have to do with how much oil is being contained, how much oil is being cleaned, how much oil is gushing. It has to do with a storm, Tropical Storm Alex. We got word a little over an hour ago from the National Hurricane Center that, in fact, we have our first named storm of the Atlantic hurricane season.

Right now, it is a tropical storm. Right now, so many forecast models have it going different directions. But it heading towards the Gulf, but not exactly sure where it's going to hit.

That, of course, could complicate things -- well, much more than complicate things in the whole disaster-response and recovery effort. You have so many people, literally tens of thousands associated with the cleanup and containment of this oil right now.

And if those people have to shut down those efforts for awhile because this storm is moving in, then oil could once again going into the Gulf unabated for a countless number of days. And, again, as we know, the government estimates are anywhere between 35,000 and 60,000 barrels could be leaking from that -- from that gusher that's still about a mile below the surface of the water.

So we will wait to see exactly where this might go. Reynolds Wolf will be with us throughout the morning. He is tracking this thing for us.

Also, every weekend here on CNN SATURDAY and Sunday MORNING, we make it our mission to introduce to someone, tell you about someone we just think you should know about, that's doing something. And hey, we're here in New Orleans, so why not focus this morning on one of the New Orleans Saints, one of the Super Bowl champion Saints.

His name is Leigh Torrence. And of course, the Saints have done so much for this city. But he's doing something for his city, his hometown back in Atlanta. He's holding a free football and cheerleading camp. He's doing it this morning.

We touched base with him. He's getting ready for it this morning, expecting about 600 kids to attend. That's up from about 150 that were there last year.

Torrence structured what he called the Sway Camp (ph). He's trying to combine lessons on the field and off the field. He called this thing a legacy.

Take a listen.

(BEGIN VIDEO CLIP)

LEIGH TORRENCE, NEW ORLEANS SAINTS PLAYER: Winning the Super Bowl and being a -- you know, world champions, is great, and it's something that will -- will go on and go down in history.

But at the same time, I think some of the lives that we're able to touch and some of the people who -- who we're able to, you know, give more opportunity, I think maybe, you know, perhaps that might be right up there, if not even greater than -- than any championship.

(END VIDEO CLIP)

HOLMES: Well, another reason -- Torrence just somebody we thought you should know about. Well, he's been in the NFL for six years; he's been doing this one-day camp for the past five.

Again, Leigh Torrence. Just somebody we thought you should know about this morning.

But again, the issue here, the headline this morning, really, for folks here in the Gulf, is that, in fact, a storm is on the way. And how is that going to complicate and exacerbate the problems here in the Gulf and this whole Gulf oil disaster, now on Day 68?

We are covering the story here live for you from New Orleans, with the developments throughout the morning. Also, a big weekend in Washington, D.C., because they're getting ready for a big week in D.C. It's always high drama when you're talking about a Supreme Court nomination. Hearing -- those are getting under way next week as well. We've got the preview for you.

Stay here with us on this CNN SATURDAY MORNING, live from New Orleans.

(COMMERCIAL BREAK)

BOLDUAN: Senate confirmation hearings for Supreme Court nominee Elena Kagan begin Monday. White House officials are confident that Kagan will earn high marks and the votes necessary to get her confirmed, even though she has no judicial experience and has served in two Democratic administrations.

But a new poll tells a bit of a different story.

Deputy political director Paul Steinhauser has the details.

(BEGIN VIDEOTAPE)

PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Hey, good morning, Kate.

Public support for Elena Kagan's nomination to the Supreme Court is down 10 points. That according to our new CNN/Opinion Research Corporation national poll. Forty-four percent of Americans now say they want the Senate to confirm Kagan. But back in May, soon after President Obama nominated Kagan, 54 percent of those we questioned said they were in favor of her confirmation.

Our polling director, Keating Holland, says the decline's coming mostly from Democrats and women, who are moving to the undecided column rather than outright opposition.

And one other thing: More than 6 in 10, they say they think the Kagan confirmation hearings in the Senate will turn into a partisan food fight.

Stay tuned to see if their predictions come true -- Kate.

(END VIDEOTAPE)

BOLDUAN: And confirmation hearings begin Monday for President Obama's second Supreme Court nominee Elena Kagan, as she goes before the Senate Judiciary Committee.

And as a reminder, live coverage begins Monday at noon Eastern, right here on CNN.

And the new iPhone -- oh yes, the new iPhone is on sale. But does the demand live up the hype? Our technology expert joins us with the answers.

Stay with us. (COMMERCIAL BREAK)

BOLDUAN: And welcome back. It's 6:30 -- in the morning, obviously. Back here -- back to CNN SATURDAY MORNING. You're back with us. I am Kate Bolduan here in Atlanta. Thank you so much for starting your day with us.

HOLMES: Yes, that's why we -- why we love having you. You know it's morning time, Kate. Nothing gets past you.

(LAUGHTER)

HOLMES: Good morning to you, Kate. Sorry I -- sorry I can't be there with you in Atlanta. But down here in New Orleans, where there are some -- some very serious developments here in this whole -- whole Gulf oil disaster that, quite frankly, don't necessarily have to do with the oil, the cleanup, the containment or stopping the leak. It has to do with the weather.

Here we are now on day 68 of the disaster. Of course, we are in hurricane season. This morning we got word just a little over an hour ago that the first named storm of the Atlantic hurricane season has formed. This is Tropical Storm Alex. This could have an affect on the Gulf Coast area. You see there kind of the track. We don't know exactly where it's going to go.

Reynolds was talking to us earlier. There's just so much uncertainty right now. We should know more throughout the day and also tomorrow about where it goes. Depending on where it goes, that is depending n how it is going to affect this entire Gulf oil disaster and the response and clean-up. We'll be talking to you about that throughout the morning.

Also this morning, there is an appeal out there from government attorney. They have filed an appeal to a circuit court judge's decision which effectively blocks President Obama's six-month moratorium on offshore oil drilling. That back and forth in court continues right now.

In the meantime, we know more -- the Obama administrations will be making their way to the Gulf early next week, including the Vice President Joe Biden, who will make his way here. He is expected here on Tuesday.

Meanwhile, another shrimp harvesting area, this one off the Gulf Port, Mississippi shipping channel, now closed due to oil being in the area.

Like I said, Reynolds Wolf is keeping an eye on this storm, Tropical Storm Alex. Now, Reynolds, we're waiting to know more. Right now everybody is on edge. It's on the front page of the paper here this morning. Everybody worried about the weather. Right now what is the best-quite frankly, their guesses, forecast, I should say, about where this thing might go?

WOLF: Right now the main forecast that we have is that this will approach the Yucatan Peninsula. You can barely see it on this satellite imagery just below the clouds here. Let me give you viewers at home an idea of what you have.

This is where you have the Yucatan Peninsula, right about there you have the Bay of Campeche, right here the Gulf of Mexico and the Caribbean. This is where the storm center is. That closed center of circulation just happens to be just north of Honduras and just to the northeast of Guatemala.

The latest forecast path we have from the National Hurricane Center brings this storm more to the west-northwest and it's going to do so at a fairly quick rate. Winds right now, with Tropical Storm Alex, right around 40 miles per hour. Some gusts have been stronger, up to 50.

One of the great things we have working in our favor is the storm will interact with land. As soon as it gets away from the warm water it's going to lose a lot of its umph, a lot of its momentum, a lot of its power. One of the big problems though is as the storm moves over this land, if you're moving over an area where you have some high elevation, it would help break up the center structure, the center of circulation with this storm system.

The problem is if you've ever been out on say the Yucatan Peninsula it's as flat as a parking lot. This is going to cross over, the latest path has it it's going to Monday crossing over from the Yucatan Peninsula into the Bay of Campeche and moving into the Gulf of Mexico.

By 2:00 a.m. on Tuesday morning winds forecast at 40. As soon as it goes from 39 miles per hour, as soon as it reaches that point, it goes from a depression to a tropical storm. It is expected to fluctuate with power, possibly with winds of 70 miles per hour as we get to 2:00 a.m. on Thursday. This is about three miles or four miles per hour short of becoming a hurricane, minimal hurricane at 2:00 a.m.

Again, you look at that line. That line brings it a little bit into South Texas. However, you look at the cone of probability, the storm could veer a bit more to the north. It could move more to the south and to the west. There's a lot of uncertainty at this point. What I do feel confident in is it's going to make its way to the Yucatan Peninsula.

Let me show you within more thing. We often talk about computer models, spaghetti models. What we sometimes refer to them as. Here's a look at the different models that we have. Some of the models bring the storm up towards parts of the Florida Panhandle. In fact, this one, the GFDL brings it up just between Pensacola and Panama City, as we get towards the weekend.

Guys, I know this is a little bit alarming, do not really have any focus, really don't have any confidence in these right now. What I do have confidence is where the models tend to agree.

And Mark Guluilani (ph) is the fellow who is behind the camera. Mark, I don't know if folks can see this very well. Right now everything comes into agreement right along parts of the Yucatan Peninsula. Let's deal with this first and foremost. It is going to go to the Yucatan. Then when you get on the other side that's when the models begin to split up and disagree.

It's going to be a step-by-step basis. T.J., let's take it the next 24 to 48 hours. We should have a much better handle on what we can anticipate. Let's pitch it back to you and, quite frankly, let's keep our fingers crossed. Back to you.

HOLMES: All right. Keeping our fingers crossed. And Reynolds, I know we're going to talk to you throughout the morning. At another point this morning I want to ask you about what happens to the oil if the storm decides to go this direction or if it goes that direction? I know we don't know yet.

There are so many scenarios to look at that could be good or bad, quite frankly, depending on, it could push the oil further inland or it could keep it contained in one area, could push it more toward Florida . Later on this morning I certainly want to talk to you about what happens when it goes here, here, or here. So, I'll chat with you about that in a little bit, Reynolds, we appreciate you. Thanks so much, buddy.

WOLF: You bet.

HOLMES: A lot of people down here being effected by this Gulf oil disaster. Certainly the restaurants who had been depending on the food coming from the Gulf to serve, to put on the plates to serve to their customers. What do you do when that food supply essentially goes away? You have to get a little bit creative. We're talking to one chef this morning about just exactly what day they've had to do to stay in business. Stay with us here on this CNN SATURDAY MORNING.

(COMMERCIAL BREAK)

HOLMES: Welcome back to this CNN SATURDAY MORNING coming to you live from New Orleans where we got word an hour and a half ago that in fact we have the first named storm of the Atlantic hurricane season. We will be tell you more about this Tropical Storm Alex and where it might be going and how it might complicate all the efforts going on right now in the Gulf oil disaster response.

Meanwhile, here in New Orleans and really along the entire Gulf, restaurant owners and managers they are feeling the pain in a major way from this oil spill. There's limited fishing grounds out there, folks. That means there's less product and that could mean higher prices. Some restaurants, though, doing what they can, doing their best to try to keep from passing along some of those price hikes to the customers.

(BEGIN VIDEO CLIP)

WALTER DOBBS, RESTAURANT OWNER: To me it's more about the dollar than you turn, it's about making the consumer happy. I'm going the hold out as long as I can, so that everybody can still enjoy the food that they like. VIC ALLRED, RESTAURANT OWNER: I think most of it is speculative. You have buyers out there who have bought product and now because the demand has risen, they are just charging more.

(END VIDEO CLIP)

HOLMES: Well, Gulf coast chefs here, they are not just concerned about the oil's impact on the seafood. They are worried about the people who provide that product for them. Cnn.com's Eatocracy, we have a blog called Eatocracy now. It got reaction from chefs at the Food and Wine Classic, in Aspen, Colorado. Take a listen.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: What's happening with seafood?

UNIDENTIFIED MALE: Dadgum, cat, that's a broad-ass question.

UNIDENTIFIED MALE: I watch with horror every day what's happening there.

UNIDENTIFIED MALE: Ruined American culture.

UNIDENTIFIED MALE: Tragically brilliant.

UNIDENTIFIED MALE: Catastrophe.

UNIDENTIFIED MALE: Powerless.

UNIDENTIFIED MALE: Horrible.

UNIDENTIFIED MALE: Sad, sad thing.

JOHN BESH, NEW ORLEANS CHEF: It's really difficult to see this happen in slow motion. I'm chef John Besh from New Orleans. I've got six restaurants down there. Up here in Aspen, cooking up a storm.

We, in New Orleans, are facing some seemingly insurmountable odds with this oil spill out in the Gulf. It's been incredibly frustrating to see that so much of our fisheries and so many of our coastal communities in the extreme South, especially Southeast Louisiana, are closed off fishing because of the inundation with so much oil coming into the salt marshes estuaries there, where all the shrimping takes place.

Each day oil gets closer and encroaches closer in to the coastline and we have more precautionary closings issued on a daily basis. I don't think there's ever been a point in history where a chef was so familiar with what exact area each oyster, each shrimp, each crab, and each fin fish comes from.

MARCUS SAMUELSSON, "TOP CHEF" MASTERS WINNER: I've said to all the chefs in my restaurant, we have to still keep buying fish and seafood from the Gulf. The whole Gulf is not affected. It's important for us to go back in there and buying shrimp and crab, redfish, snapper, cobia in the places that are available. SAM TALBOT, "TOP CHEF" SEASON 2 SEMIFINALIST: It's affecting the way -- definitely I think of write get my fish from and how accountable it is for the fishermen and the traceability back to the certain boat. That's something that I always take into consideration.

ANTHONY GIGLIO, FOOD JOURNALIST, SOMMELIER: I don't look at seafood the same right now. I think, oh, my God, this could be the last time in how many years we might not be able to taste fresh shellfish from our own coast. I think the future might be importing, which is just awful.

MICHAEL VOLTAGGIO, "TOP CHEF" SEASON 6 WINNER: I think as chefs, we can pretty much get what it is we're looking for. It doesn't necessarily all come out of the Gulf of Mexico. I think our hearts go out to the people who are actually suffering with regard to the people who are actually out there fishing.

MICHEL NISCHAN, CHEF, OWNER, DRESSING ROOM: I think it had to happen. I am so sorry for the families down there. I feel their pain. I have relatives down there. I know the deal. But you know what, I'm kind of glad it happened because we have to change the way we do things as a whole. I hope that's what this leads to.

BRIAN VOLTAGGIO, "TOP CHEF" SEASON 6 SEMIFINALIST: There needs to be messages out there saying it's OK, it's OK, it's OK to come down here, it's OK to take part in tourism. I talk to John Besh a little bit, you know, about it, and I just think it is truly, truly important that there are more messages out there, especially from chefs, especially restaurateurs, who know firsthand what the product is like.

BESH: I've been really proud of our chef community, in particular the entire hospitality community throughout the country, but especially down in the Gulf Region. It's the coastal communities that have really given us so much of our culture through all of these great ingredients that we have at our fingertips. I'm worry what will come 5, 10, 20 years from now? How long it will take for us to really put these communities back in -- back into fishing. That, we just don't know.

(END VIDEOTAPE)'

HOLMES: So it has been a struggle here for many restaurants, for many chefs as well. Brian Landry, executive chef of Galatoire's, in the French Quarter. A 105-year-old restaurant that is probably not going to let a Gulf oil disaster shut it down if it has been around 105 years.

What would you say your customers, since this Gulf oil disaster, have they noticed anything different in your restaurant? Are you trying to keep changes as far away from them as possible?

BRIAN LANDRY, EXECUTIVE CHEF, GALATOIRE'S: We haven't had to make any changes. Our customers are almost embracing the Gulf seafood. I think it's a fear that there's a limited supply and we don't know how much longer we will be able to supply them with that seafood. So it's almost like the last super. If they see fresh Louisiana shrimp, they're going to buy.

HOLMES: I bet you're getting a lot of questions. Where is this from? Anything wrong with it? How much is left?

LANDRY: Correct. But so far what's great is that we still have a steady supply of great seafood. It's tested more than ever. So it's probably the safest seafood on the planet at this point. So we're still able to offer them all the things they're used to.

HOLMES: Help people understand this. We hear all the time there's not as many fisherman, many shrimpers, many oystermen going out in the first place.

LANDRY: Correct.

HOLMES: We're told there's a limited supply. You have been able to keep your supply up, but you have to be, quite frankly, crafty about it.

LANDRY: Yeah. We work a lot harder to source all of the seafood we normally offer our customers. The price has gone up. It's 15 percent higher for us to purchase. We don't pass that on to our customer. It's just part of what we're going through right now. So we have a lot more conversations with our purveyors, with the shrimpers that sell directly to us, to the oystermen that sell to us. So we have to work harder to source it, but we're still able to source it.

HOLMES: You made a point to me a moment ago, as well, that you have to know who to go to, to get your supply because other restaurants that might not have the wide net that you have, and know which oystermen to go to, they might be hurting, but you just have to know which oystermen are still going out there, and who has the supply.

LANDRY: That's the case. Oyster beds are specific to oystermen. So if you want oysters from a certain area, you have to know who fishes those waters. That's what the relationships that we've been dealing with, with our purveyors, with the people who actually catch the seafood, they go back decades. So if you're in touch with those people, you still have access to the product.

HOLMES: Now, is it pretty competitive right now with the restaurants? You are competing for a smaller group of guys?

LANDRY: It is. So the people who stay more in touch with the people who are closer to the water, they definitely have an advantage. Galatoire's is 105 years old. We have lots of relationships that go back decades, again. We know where our seafood comes from.

HOLMES: How long would you say, here to wrap this up, before you have to start passing along some of that price hike to your customers?

LANDRY: I think it's a wait and see game. You know, availability is a question. Price is a question. For now we're comfortable leaving things the way they are. And we'll see what happens in the future.

HOLMES: Do you assume the prices are going to continue to go up for you guys at least?

LANDRY: That is the assumption.

HOLMES: Are you trying to keep from having to get oyster and seafood from where other than the Gulf ?

LANDRY: We are.

HOLMES: That's a sin, right?

LANDRY: We are definitely trying to support the people who have kept us in business for so long. You know. I hear stories of people who put signs in their restaurants and say we proudly don't serve Gulf seafood. It's infuriating because our seafood is as safe as it's ever been.

And if I could ask the people out there in America, support the Gulf States. Our seafood is safe. It's tracked from the water to your plate. You have nothing to worry about. If it is there, it made it all of the way to you. Order it, support those guys who worked so hard.

HOLMES: You hear it here, folks. Brian Landry, again, executive chef, Galatoire's; it is 105 years old in the French Quarter.

I know you are getting to work today. I do believe. Good to have you here and getting that message out to folks.

And important message there as well. You heard it here from the chef, if it's on the plate, it's probably the safest seafood you can find anywhere, because it's tested more now than any other time.

So again, food lovers out there as well, want you to know about a new site we have. We showed it to you a short time ago. It's called Eatocracy, Eatocracy, it is on CNN.com. Go there for smart compassionate conversation and information about food news, politics, culture, as well.

Thanks again to our Executive Chef Brian, for coming out here with us. But an important message, there, Kate, the safest food you're going to find probably in the country is right here.

BOLDUAN: It absolutely makes sense. If they're going to be watching it at any time, right now they're on high alert to watch for it. I believe him. And I expect you to go to that restaurant, for me.

HOLMES: Yes, we will be there.

BOLDUAN: Thanks so much, T.J.

So this is something you really want to listen up to. If you drive a Lexus, listen here. Straight ahead, we have the details on a recall you need the know about.

Plus, one year after his death, we look back at the final days of Michael Jackson's life. Stay with us. We'll be back right after break.

(COMMERCIAL BREAK)

BOLDUAN: It's been one year since the King of Pop died in his home from an overdose of a powerful anesthesia. Friends and colleagues say he showed no signs of health problems in the hours before his death.

CNN's Don Lemon reflects on the last day of Michael Jackson's life.

(BEGIN VIDEOTAPE)

DON LEMON, CNN CORRESPONDENT (voice over): As the sun rose above the exclusive Los Angeles hills, inside Michael Jackson's mansion, the entertainer began the morning of June 24th, 2009, doing what he loved. Preparing for a show.

TRAVIS PAYNE, CHOREOGRAPHER: Now, do it slow.

He and I would start about noon or 1:00 o'clock at his home. We'd dance a few hours and stretch.

You have to have a full attitude. You have a half attitude. Do the full one.

LEMON: Travis Payne was Michael Jackson's long-time choreographer.

PAYNE: We were on a journey with Michael that would return him to a stage that he loved so much. I know that we were eight days away from leaving for London.

LEMON: The stage is where Michael was most at ease. On stage, there was no one better. Since age five he electrified audiences around the world with hit songs like "I Want You Back." And the world appeared ready to welcome him back. It had been 12 years since Jackson's last major performance. The King of Pop was poised to regain his throne.

MICHAEL JACKSON, SINGER-SONGWRITER, ENTERTAINER: This is it, I mean, this is really it. This is the final -- this is the final curtain call.

LEMON: On the afternoon of June 24th, Jackson arrived at the Staples Center in downtown Los Angeles. Rehearsals for "This Is It" often ran late into the night. On the surface, the man many say was born to perform never looked better.

(On camera): Was his voice getting stronger over a period of rehearsals?

PAYNE: Absolutely.

LEMON: Was his dancing getting stronger?

PAYNE: Absolutely.

LEMON: His body, everything?

PAYNE: Absolutely.

LEMON (voice over): Michael Bearden, the musical director for "This Is It" was on stage that last night.

MICHAEL BEARDEN, MUSICAL DIRECTOR, "THIS IS IT": He looked back at me after we did one number, and he looked at me as if to say, yeah, I'm Michael Jackson, I've got this. He looked really good. I teased some of the dancers when I see them because M.J. was 50 years old, and they're like half his age and he was still was wearing them out.

LEMON (on camera): Was anything out of the ordinary that night?

BEARDEN: The only thing that might have been out of the ordinary is that Michael had a serious glow about him that night. You could see his confidence growing and you could see physically he was able to do the things that he wanted to do, that was just coming out naturally. The stage is where he grew up. I think he was feeling more comfortable every day.

LEMON: Jackson left the Staples Center around midnight and headed to his rented mansion in the posh L.A. neighborhood Holmby Hills. Just 12 hours later, however, nothing would ever be the same.

UNIDENTIFIED MALE: Your mom said, "Get down here, it doesn't look good."

I said, "Oh, my gosh, what's going on?"

(END VIDEOTAPE)

BOLDUAN: And that was CNN's Don Lemon with that report. Michael Jackson's father, he filed a wrongful death lawsuit Friday. The one- year anniversary of the pop star's death against Doctor Conrad Murray, Jackson's personal physician. It alleges that Murray gave paramedics and doctors false information about drugs he gave Jackson.

Murray is awaiting trial on voluntary manslaughter charges. Tonight, CNN reveals details of the events leading up to the tragic death of Michael Jackson. We'll talk to Germane and Tito about how their brother died, and who they think is responsible. Plus, hear from some of Jackson's closest associates about his health and state of mind. Watch "Michael Jackson: The Final Days" tonight and tomorrow night, at 7:00 Eastern, right here on CNN.

We'll be right back.

(COMMERCIAL BREAK) HOLMES: Good morning, everybody. Welcome to this CNN SATURDAY MORNING. Top of the hour here now at 6:00 a.m., where I stand in New Orleans, Louisiana this morning. Of course, 7:00 a.m. back in Atlanta, Georgia. Welcome wherever you may be this morning. Glad you could be here. I'm T.J. Holmes.

BOLDUAN: And I'm Kate Bolduan here in Atlanta, holding down the fort. Where it is 7:00 a.m., as T.J. said. Thank you so much, everybody, for starting your day with us.

T.J., I miss you, but we continue.

President Obama today is waking up in Canada this morning p. He'll head to the G-20 Summit later today in Toronto. Leaders of the world's richest countries are meeting to talk about how to keep the global economy growing -- big questions there. We'll take you live to Canada.

HOLMES: Well, Kate, wish I could be there with you. Sorry, I'm away. But duty calls because here in New Orleans, as you hear the train go by here on the river this morning, there are concerns this morning about a tropical storm.

It is our first of the Atlantic hurricane season. It is on its way to the Gulf, concerns about where it might go. You see the possible track. That cone there is a cone right now of uncertainty, about where it will go and how exactly it will affect this entire Gulf oil response. A whole lot more on that live from New Orleans.

Let me hand it back over to you for now, Kate.

BOLDUAN: Thanks so much, T.J.

Well, let's get a check of your top stories right now.

A major overnight fire destroys part of a fruit packing plant north of Sacramento, California. The company is known for gourmet fruit baskets and boxes. Managers there say they'll do everything they can to get the workers back on the job, realizing so many rely on their paychecks in today's tough economy. The company has been in business for a century.

And a labor union representing border control agents takes issue with Arizona Governor Jan Brewer's latest comments on illegal immigration. Here's what she said.

(BEGIN VIDEO CLIP)

GOV. JAN BREWER (R), ARIZONA: We all know that the majority of the people that are coming into Arizona and trespassing are now become drug mules. They're coming across our borders in huge numbers. Drug cartels have taken control of the immigration, and illegal trespassing that we are seeing in the state of Arizona, and that is coming through and going to all over America.

(END VIDEO CLIP) BOLDUAN: T.J. Bonner of the National Border Control Council says the governor's claim has little accountability because drug smugglers are typically transporting much larger quantities of drugs.

Former Vice President Dick Cheney, he is in the hospital this weekend after claiming to doctors he wasn't feeling well. He's had a well-documented history of heart problems.

And let's bring in Sandra Endo. She's joining from Washington at the hospital where Vice President Cheney was taken.

Sandra, as we said, he has a long history of heart problems. Is he there for precautionary tests or how is he doing?

SANDRA ENDO, CNN NATIONAL CORRESPONDENT: Well, Kate, what we know right now is that the former vice president, 69-year-old, does have a long history of heart problems. We know that he has suffered many heart attacks since he was 37 years old. And the most recent one was this past February where he had a mild heart attack and underwent some testings. And he did have a quadruple bypass surgery in 1988 and since then, two artery clearing angioplasties as well.

But having said all that, Kate, we don't know for right now if he was admitted yesterday because of any heart problems. All we know right now is a spokesperson said yesterday that he wasn't feeling well and he was admitted to the hospital because doctors wanted to test him and keep him here pretty much through the weekend -- Kate.

BOLDUAN: And do we know exactly how long they say that these tests are going to last, how long he's going to be in the hospital, or is it kind of HIPAA rules right now. Not a lot of information coming out in the hospital?

ENDO: Yes. Not a lot of information. We did reach out to a hospital spokesman earlier this morning as well as the vice president's spokesman. Still no word yet on any new updates. But what we do know right now is that doctors, as a precaution, did want to keep him here through the weekend to undergo testing.

BOLDUAN: Thanks so much, Sandra -- Sandra Endo in Washington.

Now, to the Gulf oil disaster. There's a lot going on today and we are covering it all. Our man, T.J. Holmes, is there in the Gulf covering it all.

What's going on, T.J.?

HOLMES: Hey there, again, Kate. Good morning to you.

And good morning to our viewers.

A lot of people may just be waking up this morning. We have some major concern on this day 68 now of this Gulf oil spill. And this concern doesn't have to do with how much oil is still gushing into the Gulf. It doesn't have to do with how much is now making it to the shores. It doesn't have to do with the clean-up or the containment. It has to do with weather.

This morning, just a couple of hours ago, we got word from the National Hurricane Center that, in fact, we do now have our first named storm of the Atlantic hurricane season. It is tropical storm Alex. You see it there. You see it forming headed towards the Yucatan Peninsula.

After that, we really don't know where it's going. There are some forecasts and projections about which way it could go. And depending on where it goes, it could affect this whole Gulf oil disaster response. It could affect which way the oil goes. It could affect the tens of thousands who are here right now as a part of this whole clean-up and containment effort.

Thad Allen, who is in charge right now of this whole disaster response, said he might have to pull people out. Again, we have tens of thousands of people as part of this effort. They might have to pull them out of the Gulf, might have to shut down some of those ships that are siphoning up oil and get them out of harm's way depending on where this storm goes.

While that's happening, also this -- a court battle continues. The government attorneys filing an appeal to a circuit court judge's decision which effectively block's President Obama's six-month moratorium on offshore oil drilling. That's the back-and-forth that's been going on the courts.

The president wanted a six-month moratorium on oil drilling. Some went to court and sued and said you need to lift that. So, the six-month moratorium was lifted, but now, the back-and-forth in court continues.

Meanwhile, more members of the Obama administration will be heading down to the Gulf and down to New Orleans specifically over the next week -- including the vice president, who is expected to be here on Tuesday.

Also, we're getting that as word of yet another shrimp harvesting area. This one off the Gulfport, Mississippi -- this shipping channel now closed due to the oil in the area. So, they're starting to see fewer and fewer -- it's kind of been going back-and-forth in all honesty. They shut down some areas for oysters or fishing one day. Then they open up another area sometime.

But I believe somewhere around 30 percent right now of the Gulf oil waters are off limits -- off limits to fishing. But still, so many other areas are still open and we heard from a chef here a little while ago, the food probably here in the Gulf safer than anything you're going to eat anywhere because it's tested over and over and it has closer eyes on it, Reynolds, right now than it ever has.

And you've been down here several times. You know and you hear this as well, and you've been eating at these restaurants as well, Reynolds. They say this is some of the cleanest stuff you will anywhere because of the safeguards that are in place because of the oil. WOLF: No question about it. They take great pride in it. It is their livelihood and they're going to ensure that it is the very best available. What unfortunately I wish I could give them is the very best weather forecast available. But it looks like things are beginning to heat up in the Atlantic basin, the Tropics, including the Caribbean and possibly into the Gulf of Mexico.

T.J., you were talking about this. We, of course, are referring to Alex. You see it here. This is a little bit of a loss of data popping in right there due to the satellite, but you're going to see, again, the enhanced radar -- enhanced satellite, very deep convection forming off the Yucatan Peninsula.

This is Alex. It is at this point a tropical storm, with winds around 40 miles per hour. However, the latest forecast has the storm strengthening becoming possibly a stronger tropical storm as we get into Tuesday, Wednesday and Thursday, if it holds this path and it goes this direction.

Right now, the latest forecast path from the National Hurricane Center brings it on to the Yucatan Peninsula sometimes as you get into early on Monday, early morning around 2:00 a.m., with winds of 35 miles per hour, dropping below strength of a tropical storm, becoming a depression, moving across the Yucatan.

If it makes it intact across the Yucatan Peninsula and back on the Bay of Campeche and into the Gulf of Mexico, it's going to move into an area with very warm water, very minimal sheer in terms of upper level winds. With that in mind, you have a chance of seeing these things strengthen once again, perhaps even becoming a fairly strong tropical storm with winds of 70 miles per hour, gusts of 85.

And the way this path looks from the National Hurricane Center, it looks very similar to a storm back in 2005, that was Hurricane Dolly, which made landfall right here in South Padre Island.

However, keep in mind, there's a whole lot that could change. The storm may die out altogether, may strengthen, may move in several different directions.

And coming up, T.J., we're going to show folks a look at spaghetti models, different models that we have and just some of the ideas, some of the variations we may see as to where this storm could possibly go.

Let's send it back to you.

HOLMES: All right, Reynolds, appreciate you.

And, again, we're going to be talking to Reynolds, going to have a conversation about what -- what it means if the storm goes left, if it goes right, quite frankly, what it means for the oil. So, we'll get into that a little later.

Reynolds, appreciate you.

For now, I'm going to hand it back over to my colleague, Kate Bolduan -- who, again, is holding things down there in Atlanta for us.

Hello to you, again, Kate.

BOLDUAN: Thanks so much, T.J.

So, coming up, just how do you get out of debt? Good question. The leaders of some of the richest countries in the world are getting together to discuss just that. We are live in Toronto with the details right after this.

(COMMERCIAL BREAK)

BOLDUAN: Some more problems for Toyota. The company is recalling 17,000 Lexus vehicles because they spill too much gasoline during government crash tests. Toyota says its own test did not show that problem. The affected vehicles are 2010 Lexus HS 250h models.

So, take a look at your car.

Customers can find more information online at Lexus.com/recall.

So, President Obama and other world leaders, they are in Canada for this weekend's G-8 and G-20 summits. The president says the meetings are a key part of ongoing efforts to strengthen the global economy.

Chief business correspondent Ali Velshi is live in Toronto with a breakdown of both summits.

So, Ali, we talk about it all the time. You hear G-8, G-20 -- it sounds like something that is bigger than you are and has really no impact on your life. And I don't mean -- I mean this better than it sounds, Ali. But why should we care about what's happening in Canada this weekend?

ALI VELSHI, CNN CHIEF BUSINESS CORRESPONDENT: Yes, it's a valid question. In fact, there are a number of people in Toronto here, protesters, who actually ask that question quite straight out, saying that this is $1 billion bash for elites. It has nothing to do with real people.

I'll tell you, the reality is, this economic crisis we've been through in the last couple years indicates that even the things that you don't think have anything to do with you, bank leverage and bank capitalization and financial regulation, the bottom line is, it was the absence of those things, Kate, on a worldwide level that contributed to the economic crash that we had.

So the debate here, the G-8 is going on today, that started yesterday, goes on today, that wraps up and they start the G-20, which is today and tomorrow.

The G-8 is a group of eight industrialized nations, the richest nations in the world.

The G-20 is a much broader group involving a lot of emerging nations and the issues being discussed are largely financial -- whether financial reform should be the same around the world, whether there should be standard bank rules, whether banks around the world -- large banks, influential banks -- should have to have a certain amount of money in reserve, certain amount of money on deposit before they take risks with that money.

But most importantly, Kate, there's this issue of whether governments should continue to fund -- should continue to put money into the economies that consumers are not spending until time that consumers come back.

Now, Kate, you'll remember, a year and a half ago, two years ago, central banks around the world, governments were unified. They said until we get this credit issue sorted out, we're going to throw money into the system.

Now there's a difference. Now, there are countries like Great Britain and like Germany saying, we want to stop that spending, we want to cut our budgets, we want to raise taxes, we need to get into this austerity mode.

There are countries like the United States saying, you got to keep on spending, the economies not back yet, don't let up on the government spending, and we'll deal with budget cuts later.

And the headline on "The Globe and Mail," which is the national newspaper here in Canada, says "G-8 Agrees to Take Two Paths." And basically -- they basically agreed they can't do it all the same way. So, some countries like Germany and Great Britain -- pardon me, Kate -- will continue to do things differently and the U.S. will still push for more government spending, more stimulus until we are completely out of the woods.

That's the larger discussion that's taking place. Hard for that to relate to the regular folks, but the reality is, it is an important discussion because government spending means maybe you've got jobs, maybe your tax less be higher. That's the impact.

BOLDUAN: Real quickly before we have to go -- and I know you don't have a crystal ball even though we all want one. What do you think needs to be accomplished, even if it's small, for people to leave -- for, you know, President Obama to leave and say, this has been a home run, this has been successful?

VELSHI: Yes. Well, I don't know that home runs come out of these types of summits. Incremental gains come out of them. I think they need some agreement that we will -- that governments will continue to work in concert like they were doing while there was a financial crisis. So while Great Britain and Germany and others might go a certain direction, the U.S. might go a different direction, they'll keep in close contact. These are meetings not just of heads of states but of treasury ministries, of central banks.

I think they're agreeing that what did work during the financial crisis is that these governments came to terms, worked in concert. One comment that I read in the newspaper this morning is that German Chancellor Angela Merkel says, the discussion was not controversial. There was a lot of mutual understanding. There was a lot of nuance.

So, the idea that if we want to do different things, let's at least talk about them and come to some understanding as to how we continue to help each other, because if we've learned anything, of this worldwide recession, Kate, is that we're all interlinked.

BOLDUAN: We are all interlinked. And we are watching it all with our favorite business eyes on it, Ali Velshi, our chief business correspondent.

Thank you for waking up, Ali. I hope we'll talk to you really soon, OK?

VELSHI: My pleasure.

BOLDUAN: All right. So, we will be back with much more after this break. We're live in New Orleans watching the Gulf.

Stay with us.

(COMMERCIAL BREAK)

BOLDUAN: The iPhone's second coming, the next generation. Well, it hit shelves in the U.S. -- it hit shelves in the U.S. on Thursday and it's already the summer's biggest blockbuster.

Check out the lines in New York City. People got there early and lined up for hours. They had to -- and they had to. Apple sold 600,000 units on the first day -- that sounds like a good number -- forcing the provider AT&T to temporarily suspend preorders because of it. And that's just in the U.S.

Check out the lines in Tokyo. They got a crack at the new iPhone before the United States did -- lucky people. People waited three days in lines there just to get their own iPhone. And we'll check it all out. How's it working, is it living up to the hype, with our expert -- right after this.

(COMMERCIAL BREAK)

(MUSIC)

BOLDUAN: That just makes you feel good when you hear that music.

So, this might not make you feel good, however. If you are upside-down in your home, meaning the value of your house is less than what you owe, then you need to hear this. One major lender wants to start punishing homeowners who opt to walk away from loans that they're capable of paying. Mortgage giants Fannie Mae announced this week that they will pursue judgments against some people who walk away from their home loans. A judgment could ban homeowners from getting loans for up to seven years.

Financial analyst Clyde Anderson is here to explain this all to me. This seems pretty big. What is this all about? CLYDE ANDERSON, FINANCIAL ANALYST: Yes. It's huge when you really think about it. You know, really, homeowners or potential home buyers have about three options when you're looking at financing a home. It's Fannie Mae, it's Freddie Mac or Federal Home Loan Administration, which is FHA. They do about 95 percent of the houses that were financed last year.

BOLDUAN: So, I mean -- so, clearly it has to be big. And it has to be impacting millions of people. Why is Fannie Mae doing this?

ANDERSON: Well, the main thing is because of strategic defaulters. They really want to get the people that are walking away from their homes. And the strategic defaulters are someone that abandons their property. They say that not because they can't make the payment, but because the house is underwater, because they owe more in the house than the house is actually worth. And they make a decision to walk away.

And so, they really want these people to hold up to their responsibility and really settle it, you know, in good faith.

BOLDUAN: So, they can technically pay but they're opting to kind of get the easy out, is the problem, and that's what they want them to stop.

ANDERSON: And they got different situations. About 10 million people or more are actually underwater right now in the U.S. in their homes. So, it's a hard situation. It's hard to tell exactly whose situation is what and why they're actually walking away.

BOLDUAN: And I want to get into that in a second. But what is the potential fallout here of this one decision by Fannie Mae?

ANDERSON: I mean, it's going to hurt millions of people that potentially could qualify for a house three or four years down the road but they can't because of this action. So, it's going to hurt a lot of people.

Also, I mean, you're thinking about, really, we need a boost in the housing market right now. This just seems a little bit counterproductive to what the president has been trying to do for the last three years in stabilizing the housing market. And so, you've got that issue.

So, there are several things that you really have to look at as far as the impact. You know, they really want people to, instead, do a short sale, talk to them, do a deed and lose. So, they want to look at other options instead of just walking away.

BOLDUAN: They're trying to incentivize you for trying to look for a different avenue ...

ANDERSON: Exactly.

BOLDUAN: ... including means that saving them money.

ANDERSON: Exactly. Exactly.

BOLDUAN: So -- but some experts -- they announced this just this week -- but experts are already saying it's going to be near impossible for them to kind of implement this. I mean, how do you distinguish as giant Fannie Mae between someone who's really in trouble against someone who can pay but just isn't paying? There must be some real questions about this.

ANDERSON: Yes. And that's one of the big questions that I have. I mean, how do you really do that? How do you determine that someone actually tried to modify their home or if they're in a situation where, you know, they just couldn't afford it anymore or the house is so much underwater the neighborhood has changed so much that sometimes they don't feel safe in those neighborhoods.

And so, you've really got to look at each case individually and see exactly how each person is being affected by it.

BOLDUAN: It seems like there are a lot of details that still need to be worked out.

ANDERSON: A lot of details that need to be worked out and, you know, you're getting a lot of mixed results. Some people feel that this is good. Some people feel that it's bad. But you really got to look at overall what it's doing to the economy and what's it doing to the housing market.

BOLDUAN: I'm going to need your help with this one. We're going to come back to you when we have more details to figure out what is going on.

Our financial analyst Clyde Anderson -- thank you, man. You're the best.

ANDERSON: Thank you. Thank you, Kate.

BOLDUAN: So, we're going to be back in just a moment with another live check on the Gulf oil spill from New Orleans. We're live there.

Stay with us.

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BOLDUAN: So, what is causing all of this worldwide stampede for the new iPhone? Well, maybe they know something we don't.

Luckily, tech expert Katie Linendoll is joining us from New York to clue us in, more specifically to clue me in. Thanks for joining us, so much, Katie.

What is this -- what does this iPhone have that others don't?

KATIE LINENDOLL, TECH EXPERT: Yes, let's talk about the features. And according to Steve Jobs, this is the biggest leap forward since the original model which, of course, was launched in '07. And the features here are jam-packed. And the first thing you're going to notice is that retina display. And talk about color and clarity -- this is actually using four times the amount of pixels than previous models. So, it almost feels like that you're capturing the moment there.

Also, let's talk about 40 percent more battery life, the ability to multitask, also into tether. One of my favorites is the ability to not only take high-def video but to be able to edit it right on the phone and go ahead and share it.

And something that is probably the biggest hype, Kate, is two dual cameras. A five megapixel camera on one side that has an LED flash, which is great for low light situation, but also a camera on the other side. So, now, you have the capability to videoconference. They're calling it this FaceTime.

And so, what FaceTime does again, if you want to stay in touch with anyone across the country, this is the way to do it, being able to put a picture to a conversation -- pretty awesome.

BOLDUAN: That is pretty awesome and far more advanced than my little cell phone, I can tell you that. But you crossed about -- you talked about the hype. Well, we're getting a bit of a sense that there's mixed reviews early on.

Is this phone living up not hype or are there some issues going on?

LINENDOLL: Yes. And understand here, 600,000 were preordered. We're going to see over the million-mark. So, pretty remarkable.

But we did early on see problems with the preordering process. We've seen AT&T servers go down. We're also hearing some complaint about a tint on that retina display. And, of course, last but not the least, the biggest one that we're hearing is, you know, if you hold the phone a certain way, it drops reception.

But it's going to take sometime. I obviously have here a very remarkable phone, one that we're demanding more and more out of. And our phones are becoming more powerful and more incredible. They're essentially our most powerful device we have on us now. So, time will have to tell if these issues are really going to pan out.

BOLDUAN: So, a little bit of buyer beware in these early generations. We'll keep watching. I clearly need to go and get in line and get up-to-date on all this stuff.

So, thank you so much, our tech expert, Katie Linendoll.

LINENDOLL: Thanks.

BOLDUAN: Have a great weekend. We'll talk to you real soon.

LINENDOLL: Thank you.

BOLDUAN: So, let's now change directions and let's get an update on the oil disaster in the Gulf. There's a lot going on and there are worries a tropical storm could seriously complicate the clean-up efforts.

T.J. Holmes is in New Orleans doing some serious double duty covering the disaster and hosting the show as well.

What's the latest, T.J.?

HOLMES: Well, yes, duty calls and it's called us here to New Orleans this weekend. And the concern right now on day 68 of the oil disaster is not necessarily about oil itself, it's about the weather. A lot of people here are on edge. We don't know exactly where this storm is going yet, but we do know just a couple of hours ago, the National Hurricane Center told us that we do, in fact, now have our first named storm of the Atlantic hurricane season. It's tropical storm Alex.

Now, our Reynolds Wolf has been keeping an eye on this thing. And you see some of the graphics showing kind of this cone of uncertainty about where this thing is going to go and depending on where it goes, that is going to affect what happens here in the Gulf.

We will be here throughout the morning covering the very latest about what happens with this storm and, of course, the oil disaster itself. We'll be back at the top of the hour. More live news including here live in New Orleans on this CNN SATURDAY MORNING.

But for now, I'm going to hand it over to Dr. Sanjay Gupta.