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CNN Saturday Morning News

Manhunt in Oklahoma; Manufacturing Jobs Growing; House Flipping and You

Aired April 07, 2012 - 07:00   ET

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

(BEGIN VIDEOTAPE)

RANDI KAYE, CNN ANCHOR (voice-over): A killer on the loose in Tulsa, Oklahoma. Four shootings that left three dead may be connected. And now, the FBI is involved.

UNIDENTIFIED FEMALE: The whole thing was in flames, the whole backyard.

KAYE: A fighter jet turns a Virginia apartment building in a ball of fire. What was behind this fiery crash?

And at quarter past the hour, we put the jobs report in focus.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: We've got a lot more work to do.

KAYE: Its impact on the election and the new normal for unemployment.

And later, it's a bird, it's a plane, it's a flying car? We'll have a live report from New York.

CNN SATURDAY MORNING starts right now.

(END VIDEOTAPE)

KAYE: And good morning, everyone. I'm Randi Kaye.

We start with the manhunt underway right now in Tulsa, Oklahoma. Local police, the FBI and U.S. Marshalls are all part of the team, searching for what they think is a lone shooter who is responsible for three deaths. Two others were injured in the series of shootings carried out over several hours.

Earlier, I talked to City Councilman Jack Henderson, who told us that the shooter would drive up and ask people for directions and then start firing when he drove away and he also told us what is being said to Tulsa residents.

(BEGIN VIDEO CLIP)

KAYE: So, as a councilman there, what is your advice to community members?

JACK HENDERSON, TULSA, OKLAHOMA CITY COUNCIL (via telephone): That is my whole meeting last night what we were trying to do was to assure the citizens that we don't need anybody to go and take matters into their own hands. We want to give the police department an opportunity and to support them in trying to apprehend this person.

We need to cooperate with the police. I know there is pockets of people that have not traditionally done that. But this is the crisis situation, a lot of people are afraid for their lives, afraid for their children, afraid for their loved ones. And if you can't walk outside or walk down the street of the city that you live in, then that's definitely a problem.

So we need to see this person apprehended expeditiously and we need to help all we can to try to make that happen.

(END VIDEO CLIP)

KAYE: Councilman Henderson also said this may be a hate crime. The suspect is white, the victims are all black. And the area where the shootings took place is predominantly African American.

Your tax dollars at work this morning, and you are not going to be happy. There's new video now of skits played at a government agency gathering that has lawmaker asking new questions about government spending.

"The Huffington Post" posts a video of the skits on its Web site. And they show members of the government's General Services Administration.

The GSA came under fire for a nearly $1 million convention in Las Vegas, paid for by you, the taxpayers. Also on your bill is about half a million dollars in employee gifts, like iPods.

Noted artist Thomas Kinkade has died. That's him on the right there. He was just 54 years old. His family says the self-described painter of light died of natural causes. Kinkade is known for his paintings portraying scenes of wooded cabin, sea skates and classic American scenes.

A, quote, "catastrophic" mechanical failure is being blamed for a Navy fighter jet crashed into an apartment building in Virginia Beach. Investigators are working on two fronts this morning trying to figure out why a plane crashed and looking for three people from the badly burned apartment building.

CNN's Sandra Endo has the latest from Virginia Beach.

(BEGIN VIDEOTAPE)

SANDRA ENDO, CNN CORRESPONDENT: Take a look behind me, that is the destruction left behind by the fiery crash. Now, it happened at around noon yesterday, when a Navy jet crashed in the apartment complex, damaging about five buildings. We're talking about 40 apartment units in this senior citizens apartment complex, and the Navy as you mentioned, Randi, is calling this a catastrophic mechanical malfunction, and it was conducting a training exercise and all of this happened really all of a sudden.

Seven people were injured, including the two pilots who ejected before the crash.

And one resident described the scene and seeing the pilot before emergency crews arrived.

UNIDENTIFIED MALE: So, I got off the couch and went to the back door, sliding door. And when I looked out, I saw a pilot laying there, bleeding from the nose. And his parachute hanging from the building, I knew the jet had crashed. I just didn't know where until I saw the smoke. He apologized sincerely for hitting her complex, and I told him don't worry about it.

You just take care of yourself. We'll take care of you. Everybody else will take care of the other stuff.

ENDO: And according to the local area hospital, one pilot is still being treated, but reportedly doing well. The six others who were injured have been treated and released.

And so far, to give you a perspective of this entire area, we can tell you the Navy airstrip where the jet took off is only about two miles from this community. And residences here say they are used to this training exercise, hundreds of jets fly overhead daily. This is a very heavily populated area with military families. And even local officials here say they train with the Navy in case something like this happens.

So they are very used to hearing the jets overhead, but a lot of witnesses we spoke to yesterday and throughout the night say that they just knew something was wrong with this jet by the sound overhead. And one witness says that they also noticed that fuel was hemorrhaging from this jet overhead, something Navy officials also admit to.

And, of course, Randi, the investigation is ongoing.

(END VIDEOTAPE)

KAYE: Sandra Endo, thank you very much.

Coming up, it's a bird, it's a plane, it's a flying car. This is for real. No joke. I'll tell you where you can pick up this car of the future.

Plus, Reynolds standing by with the weekend forecast.

Good morning again.

REYNOLDS WOLF, AMS METEOROLOGIST: Good morning.

And if you're in a flying car, you might have delays in Dallas and also towards Oklahoma, where they got that chance of scattered showers, thunderstorm, possibly some tornadoes coming up. We'll give you the forecast in just a bit. Plus, let you know what you can expect for your holiday weekend -- all moments away.

(COMMERCIAL BREAK)

KAYE: Good morning. Now that will get you waking up, right, on this Saturday morning? Look at that beautiful shot of Lady Liberty there in the harbor of New York City. Just gorgeous.

Flying cars are not just the stuff of sci-fi movies and cartoons it turns out. The first step toward all of us owning a George Jetson car of the future was taken this week at the annual New York Auto Show.

CNN's Susan Candiotti has more.

(BEGIN VIDEOTAPE)

SUSAN CANDIOTTI, CNN NATIONAL CORRESPONDENT (voice-over): The top prize for one of the most amazing things that you will see at this year's auto show is this. Now, the question is, is it a plane that drives or is it a car that flies?

It's actually both. It is called the Transition, and made by a company called Terrafugia, which means escape from the earth.

This already is street legal, and it has an experimental license from the FAA to fly. It's already taken one test flight and gone up 140 feet. Many more test flights are planned.

And it takes 40 seconds for the wings to unfold -- an amazing sight to see. When you look inside, the dash board looks like one you would see in any car. It has both a speedometer and altimeter. Now, that's different. Wouldn't you like one?

(END VIDEOTAPE)

KAYE: I would love one of those. I know somebody else who would like one of those -- that would be Reynolds.

Did you see that thing? I guess you could fly it and then when you land, the wings just fold in and you just zoom alone.

WOLF: You know, it sounds go, but I think it's a big mistake. I really -- I honestly do. The reason why I think so I can tell you 72 hours ago I was in Chicago on the Dan Ryan Expressway. I saw a guy wearing ear muffs, one side jacked up where he was on a cell phone, texting at the same time, eating a cheese burger and driving with his knees. Can you imagine doing that 10,000 feet up?

KAYE: Maybe you could put it on auto pilot.

WOLF: Maybe -- see? Now you're on to it. See, you're smarter than I am.

KAYE: We should help design it.

WOLF: Hey, maybe so. The day is early, we're going do the newscast then we can design a plane before is said and done. Hey, it happens. We make the most out of our time here.

Hey, first, we make most of our time by showing you what we have across parts of the central and Southern Plains. This area of low pressure and frontal boundary is going to interact with the moisture from the Gulf. And that could give us a chance of severe storms especially by late afternoon.

Breezy conditions in the Northern Plains, out to the west, plenty of sunshine, plenty in the Eastern Seaboard, too, including parts of Atlanta, where highs there are going to 74 in Atlanta, 69 in Kansas City, 61 Minneapolis. Back out West we go, 60s from Seattle to San Francisco, then when you get in parts of say L.A., about 80 degrees for the high there, 83 Dallas and 50 in Boston.

Now, something else you can expect, some delays in spots like Miami, showers and maybe a thunderstorm in the afternoon. Orlando, it's going to be breezy for you, delays under an hour.

As we wrap things up. In Oklahoma City, your thunderstorms, also through Dallas in there too, and Minneapolis could see some morning showers. But things should improve as we get to the afternoon.

That's a wrap of the forecast, flying cars and everything, back to you.

KAYE: We have it all here.

WOLF: Yes, we do.

KAYE: All right. Reynolds, thank you.

Getting back to work, one factory cranking it up again, providing a new opportunity for many. We'll tell you where the jobs are next.

You're watching CNN SATURDAY MORNING.

(COMMERCIAL BREAK)

KAYE: This morning, we are putting the new jobs report in focus.

Here are the numbers: 120,000 jobs added; 8.2 unemployment rate. And as our Christine Romans told you earlier, it's a disappointment for experts who expected more new jobs.

But here's where the jobs are -- the leisure and hospitality industry added the most, 39,000. Then came manufacturing, 37,000. And 26,000 in health care. The biggest job losses came in retail.

For those who are unemployed, they are worried about adding one job, theirs.

CNN's Poppy Harlow takes us to a factory that was dark but is now buzzing with machinery and workers.

(BEGIN VIDEOTAPE)

POPPY HARLOW, CNNMONEY.COM: For years, this G.E. plant in Kentucky was shuttered, completely closed down. Not anymore -- they're making water heaters and refrigerators.

And just recently, G.E. posted 230 job openings here, 10,000 people applied in just six hours.

BILL NAPER, NEW GE EMPLOYEE: I feel that I have at least, you know, 10 years to offer, and I will be able to retire with dignity, you know, as a blue collar worker.

DEBBIE PATTON, TEAM LEADER, GE: When the people see this product we're making here, this refrigerator and how good it is and the quality that's in it, we're going to skyrocket.

HARLOW (voice-over): Just a few years ago, G.E.'s appliance business was on the table to be sold or spun off. Today, G.E. is investing $800 million in it, here in Kentucky.

Why? Rising labor costs in China and elsewhere abroad, along with union agreement to cut starting wages.

(on camera): Your union made concessions. You agreed to lower paid to get a job like this. Is this the right thing to do? Is it worth it?

NAPER: Oh, absolutely, because that's what's great in having a union, is that once that you start to manufacture and produce and make a quality product, then when the time comes around and G.E. receives the profits from our labors, then Jerry can go back to the table.

PHIL MYERS, TEAM LEADER, GE: We had to do what we had to do to get jobs in here.

HARLOW: Or the jobs would go away?

MYERS: The jobs would -- would have went away, yes, I feel pretty confident in that.

HARLOW (voice-over): G.E.'s CEO Jeff Immelt heads President Obama's jobs council and had come under pressure to hire more workers in America.

RICHARD CALVARUSO, TEAM LEADER, GE: We wouldn't do it if it didn't make business sense.

HARLOW (on camera): Some would say, look, it's an image play.

CALVARUSO: I've worked for G.E. for 23 years, and G.E. is going to perform, and we're not just going to make products for the sake of making products. We're going to make money.

HARLOW: This is an example of creating manufacturing jobs in America. But keep in mind, the United States has lost more than 5 million manufacturing jobs since 2000.

DIRK BOWMAN, MANUFACTURING LEADER, GE: Well, we haven't hired a lot in the last decade. Our strategy was to go to design source itself. Now, we're saying we want to be manufacturers again.

HARLOW (voice-over): So, what does it take to get a job here?

JULIE GRUNDUSKI, HR LEADER, GE: We can teach a lot of the dexterity work and how to do your job. We're really looking for people who want to engage in the change we're making in manufacturing, which is embracing the mind of every operator and getting them involved and how to solve problems on the work floor, and how to keep us here with continuous improvement.

HARLOW (on camera): Are these jobs here to stay?

BOWMAN: I mean, we're investing over $1 billion in our factories and products here in this country. That's a huge commitment.

MYERS: That's part of the excitement here we can produce in America. We used to be the leading producer in the world of everything. So I would like to see us get back to that.

HARLOW: Now, one important thing to keep in mind is that G.E. employs 170,000 people outside the United States, and 131,000 people here in America. So, they actually have a bigger workforce outside of the U.S.

Now, the CEO of G.E., Jeff Immelt, told me when we sat down a few months ago, look, our company gets 65 percent of the revenue from outside the United States, so, we're going to continue to globalize.

Also an important thing to keep in mind -- yes, G.E. is making these big items, refrigerators, water heaters in the United States right now. But they told me there are some things like microwaves and air conditioners that just don't make economic sense to make in America because they are cheaper to make overseas, you don't have as big a cost when it comes to transporting them as you do with those big ticket items.

Nevertheless, good to see manufacturing jobs added in America.

Randi, back to you.

(END VIDEOTAPE)

KAYE: Thank you, Poppy.

Before the housing bubble burst, what's known as house flipping help drive up the cost of homes around the country -- as home sales stalled, well, so did that. Now, it appears the flippers are back. But good news for your neighborhood and the struggling economy?

Realtor Winter Baserva and our financial expert Clyde Anderson are here and they'll tell us, next.

(COMMERCIAL BREAK)

KAYE: House flipping is making a comeback. You remember, that's where investors purchase a home, usually renovate it and then put it back on the market. Flippers can make huge profits and could potentially help increase home prices.

Let's bring in our financial guru Clyde Anderson, and Atlanta realtor Winter Baserva also joining us.

All right. Winter, let me start with you on this. What type of properties are flippers looking for?

WINTER BASERVA, ATLANTA REALTOR: Typically, your experience investors are going to look for a property that's distressed in both condition, as well as price. So it's not uncommon to see an investor look for homes that have mold, foundation issues, plumbing issues, things that your average buyer wouldn't necessarily look for because that will help them get the lower price properties and less competition.

KAYE: Hmm. OK.

Clyde, if people are -- if flippers are buying up homes in your neighborhood, is this -- is this a good or a bad thing?

CLYDE ANDERSON, FINANCIAL EXPERT: Well, it can be a great thing, definitely. As you've mentioned, it's going to increase the property value. So, a lot of these properties, some properties have become eye sores in some of the communities because they have been sitting there.

And so, now, if you got an investor that wants to go in and rehab the property and give it a new facade and new curb appeal, it definitely helps the property value for the neighbors.

KAYE: So, it could help get some foreclosures and things off the market?

ANDERSON: It definitely can.

KAYE: All right. Let's look at some of the mistakes flippers make, because, I know, you know, everybody who's watching these things, oh, well, hey, this sounds great. I'm going to go out and do this. But there are some mistakes that you said they tend to make.

Let's start with the first one -- first thing that flippers should do is get an appraisal.

BASERVA: Right. And bottom line is, is the number one mistake that they make is not understanding how today's lending laws will affect their resale. They may find that buyer that wants to pay full price of their property. But if they don't understand how an appraiser comes up with their valuation, then they're not going to be able to get their returns and they could be looking at major, major losses.

KAYE: So, if the appraisal is low, that's not going to be so good for them, in other words?

BASERVA: Yes, and FHA has a 90-day flip rule where they prevent investors from flipping within 90 days, or they become subject to two appraisals, or denial of the loan altogether.

So, you know, bottom line is you get a low appraisal on FHA loan, it's going to stick with the property for four months.

KAYE: Another thing they should do is budget for the unknown?

BASERVA: Yes, budgeting for the unknown, when an investor goes in and may be inexperienced, they'll start looking at problem A but they'll find B, C and D. If they haven't budgeted for the unknown, it might be very difficult for them to recoup these losses.

KAYE: And keep expenses to market value.

BASERVA: Yes, you don't want to renovate like this as your own personal property. And I see it happened all the time. They go with the top of the line, you know, appliances, and the top of the line granite. They need to renovate to current market standards or they're just not going to recoup their investment.

KAYE: All right. That is good advice.

So, to buy a home, Clyde, obviously, you have to pay for it.

ANDERSON: Yes.

KAYE: Is it getting easier for people to get loans?

ANDERSON: Well, loans are still pretty tight to get. But, if you have good credit, it can be easy.

KAYE: It's all about that?

ANDERSON: It's all about good credit right now, if you got a good credit. And also, if you're an investor, and a lot of these flipping we're talking about, investors buying these properties, they generally have to put more money down than they did five years ago. So, you just have to be prepared for that. And also, you have to go in knowing that you have to have a little bit of cash secure to go ahead and do those repairs and do the upgrades.

KAYE: So, it seems like the flippers went underground when the market was sort of dropping out. But now they're back, do you think overall, Winter, that this will be a good thing for the housing market then in the end?

BASERVA: I do. I do. And investors do tend to come out in markets like this, cash does come out in markets like this. It helps not only take the short sales and foreclosures that are on the market of but it helps increase neighborhood values, as well as a lot of the properties that are in this condition are un-fundable according to lender standards, so these investors are able to turn these homes around and make them fundable, which I think in turn helps the mortgage industry as well.

KAYE: Obviously, it's going to take more than just flipping homes. But you also think it's a good thing for the housing market?

ANDERSON: Definitely. I definitely think it's a good thing. I mean, any kind of boost or surge that we can get to the housing market right now is great.

KAYE: You're so positive.

(CROSSTALK)

KAYE: Such a cheerleader.

ANDERSON: We take what we can get, you know? Incremental steps.

KAYE: All right. Sounds good. We'll keep on them for all the flippers out there. Thank you both. Appreciate it.

BASERVA: Thank you.

ANDERSON: My pleasure.

KAYE: Just ahead, some exclusive new details about the Oklahoma shooting spree. Keep it here on CNN.

(COMMERCIAL BREAK)

KAYE: Getting a check now some of the top stories.

Three people are dead, two injured in an incident Oklahoma police say may be a hate crime. The victims were shot at four different locations over seven hours in north Tulsa. A spokesman said it is, quote, "not your standard homicide." Local authorities have now formed a joint task force with the local FBI.

All of the victims are black. The spokesman said the suspected shooter is a white male believed to be traveling in a white pick up truck.

Some sad news to report from the art world. Beloved painter Thomas Kinkade has died. In a statement, Kinkade's family says he died of natural causes in his California home and that they are, quote, "shocked and saddened" by the artist's passing. More details will be released in the coming days. Kinkade was 54.

Venezuelan President Hugo Chavez flying back to Cuba tonight to continue his cancer treatment just two days after returning home. The 57-year-old says he'll meet with his cabinet before he leaves again. Neither Chavez nor his government are giving details about the cancer that he is battling.

More stop stories at the top of the hour when CNN SATURDAY MORNING continues

But first, "SANJAY GUPTA, M.D." begins now.