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CNN Saturday Morning News

Credit Card Companies Settle; Future Bleak for U.S. Young Workers

Aired July 14, 2012 - 09:00   ET

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

RANDI KAYE, CNN ANCHOR: From CNN World Headquarters in Atlanta, this is CNN SATURDAY MORNING.

Shopping with your credit card today? Well soon you might have to pay more per swipe. The $7 billion credit card company settlement is being called a victory for retailers but it could be a loss for you.

Plus a wave of homicides hit U.S. cities, Chicago compared to Afghanistan. A spate of shootings rattle New York. All morning we'll put murder in America in focus.

Mr. Mojo on a no-bully tour. How kids protect themselves and why we need the mojo up challenge.

Good morning, everyone. I'm Randi Kaye. It is 9:00 on the east coast, 6:00 a.m. out west. Thanks for waking up with us.

We start with that massive credit card settlement which could mean more fees at home. Here is the deal, Visa, MasterCard and some of the country's biggest banks have agreed to a $7.25 settlement with retailers. The lawsuit centers around credit card swipe fees. Merchants alleged that the credit card companies were fixing the price on those fees and part of the agreement drops bans on credit card surcharges being charged by the retailers. That means that they are now allowed to charge more if you use plastic. It doesn't mean they will it just means that they can. So be on alert for that.

I spoke with Doug Kantor, who is a lawyer with the National Association of Convenience Stores. He says when you read the fine print, it is Visa, MasterCard and their banks who are the real winners here if this settlement goes through.

(BEGIN VIDEO CLIP)

DOUG KANTOR, NATIONAL ASSOCIATION OF CONVENIENCE STORES: They have a hall pass to continue to raise their swipe fees without restraint and not have anybody be able to enforce the law against them.

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KAYE: Doug Kantor will be back with us live in the next hour to talk what this could mean for your bottom line.

Moving overseas now to Egypt, where Secretary of State Hillary Clinton will become the first member of the President Obama's cabinet to meet with new president, Mohamed Morsi. The two will discuss Morsi's vision for Egypt and how the U.S. can help. Aides to Clinton say the secretary will also urge Egyptians to continue with democratic reforms. It is the first in a series of visits by Obama officials to the region with Defense Secretary Leon Panetta expected to head there in just a few weeks.

Clinton's visit comes at a terrifying time for two Americans who had been kidnapped in Egypt along with their tour guide. Details are still a bit sketchy but slowly coming in to CNN.

But for more on how this incident could influence Clinton's trip, I'm joined now on the phone by CNN foreign affairs reporter, Elise Labott.

Elise, good morning. First of all --

ELISE LABOTT, CNN FOREIGN AFFAIRS REPORTER (via telephone): Good morning, Randi.

KAYE: First of all, Clinton's trip was previously planned. But do we expect her to try to intervene on behalf of these two Americans who have been abducted?

LABOTT: Randi, I don't think necessarily Secretary Clinton would be -- you know, try to negotiate. We're talking about some Bedouin kidnappers that have kidnapped these people and Egyptian authorities down in Sinai are really working on it. The U.S. embassy in Cairo put out a statement earlier today that they are working with Egyptian authorities to get these Americans out. But certainly it comes at an in opportune time.

One of the things that Secretary Clinton will be talking about with President Mohamed Morsi, but also with the Egyptian military, about the need to take control of Sinai. Because as you know, there have been several kidnappings over the last year including Americans. There is some activity, some cross border activity with the border with Israel. So it's really an area of concern.

And since the fall of Hosni Mubarak the area has become even worse for traffickers, terrorist activity around the area. So I think that will be an issue of the Secretary's trip.

KAYE: Yes. And what is the State Department saying about this? I mean, he's apparently -- one of the people who have been abducted is a pastor from Massachusetts and a woman that he was with. So any more from the State Department on action they might take.

LABOTT: Well, they are leaving it to the Egyptians right now. You see, usually, Randi, what happens is these are criminal activities and these Bedouins are really looking for money and that's what the kidnapping is all about. It's a little bit different this time because this time the kidnappers have demands. They are trying to get some of their relatives who have been detained in the Egyptian tourist area of Alexandria. They were detained on some drug charges. They are trying to negotiate their release by trying to negotiated the release of these kidnappers. So it's a little more complicated than typical cases but the U.S. really leaves these cases up to the Egyptian authorities to handle.

KAYE: All right. Elise Labott, thank you for the update there. Traveling with Secretary of State Hillary Clinton. I appreciate that.

Young workers may be the future but when that future involved the troubled economy, the prospects are bleak. Here's Sandra Endo on the troubling news about the unemployment rate among younger workers.

(BEGIN VIDEOTAPE)

SANDRA ENDO, CNN CORRESPONDENT (voice-over): At 19 years old, Tegra Crudup has already endured plenty of hardship.

TEGRA CRUDUP, UNEMPLOYED YOUTH: Our house went through foreclosure. We had to go house to house living with other people. That's not comfortable at all.

ENDO: After three years of bouncing around to multiple homes with her single mom and three siblings, her living situation took a toll. Crudup was forced to drop out of high school in order to help support her family.

According to the Bureau of Labor Statistics, the unemployment rate for 16 to 24 years old looking for a job is more than double the 8.2 percent unemployment rate nationwide. In this economy, they are competing against more experienced workers also looking for a job.

For many young people, it's their first time entering the job market to gain experience and build a resume. With no job, Crudup is working toward getting her GED, taking classes at a Baltimore youth center.

(on camera): The down economy coupled with the lack of federal funds for summer jobs programs is making it tougher for young people to find work. Many state and local governments that are also facing tight budgets are left to find creative ways to invest in their youth.

(voice-over): 21-year-old Tiye Lewis considers herself lucky. She was hired at the orthopedic rehab unit at Baltimore's Mercy Medical Center through a youth jobs program. 7,000 young people registered in the program, 5,300 actually got a job.

TIYE LEWIS, YOUTH WORKER: This is what I like to do. This gives me more experience, shows me like how things work so when I get into grad school.

If I didn't have this job, I wouldn't be able to pay for some of the bills that I have for next semester, for food, expenses, stuff like that.

ERNEST DORSEY, BALTIMORE EMPLOYMENT DEVELOPMENT: We're hoping young people learn how to go to work, learn soft skills that employers say they want when they hire somebody in terms of being on time, reporting to work every day, being able to follow directions.

ENDO: Federal stimulus money for programs like this one ran out in 2010 but Baltimore partnered with the private sector to keep it going. Officials say investing in youth now will likely pay off in the long run.

Sandra Endo, CNN, Baltimore.

(END VIDEOTAPE)

KAYE: Last year one of the most dangerous cities in America cut one- third of its police force. City officials said it wouldn't affect public safety but some are questioning if they are right. We're putting murder in America in focus.

(COMMERCIAL BREAK)

KAYE: This morning we continue to put "Murder in America" in focus. With skyrocketing rate of homicide, theft, prostitution and gang violence, Camden, New Jersey, is one of the most dangerous cities in America. As recently as 2010, the FBI ranked it as America's second most dangerous city. Yet last year the mayor slashed the city's police force amid a huge deficit, laying off more than 150 officers.

Later some of those officers would be rehired. And this past Wednesday three more people were murdered. 31 lives lost so far this year. That is three times what the murder rate was in July last year.

So our question is are cities sacrificing safety just to save a few books. Joining me now from Philadelphia is John Williamson, president of the Fraternal Order of Police in Camden.

John, good morning to you. City officials originally said that the layoffs would not affect public safety but the numbers show something otherwise. Do you think that they are seeing the effects of the layoffs now?

JOHN WILLIAMSON, FRATERNAL ORDER OF POLICE, CAMDEN: Absolutely. The bottom line is when you lay off cops, crime goes up. And ultimately people die.

KAYE: Describe for me how you feel about the situation there in Camden. How bad is it? We shared some of the numbers but what does it feel like?

WILLIAMSON: Well, I have a great concern for the residents and the officers based on the fact that, again, when you cut half of the police department in the second most dangerous city in America, there is absolutely no way that the remaining amount of officers can cover the same amount of ground in the same amount of time.

KAYE: So does this all go back, do you think, to the recession? I mean do you think the crime rate goes hand in hand with poverty and unemployment and budget cuts and everything else that's happening in Camden and other hard hit cities?

WILLIAMSON: Absolutely. One of the things that we also deal with in the city of Camden is we are also the -- one of the poorest cities in America. We do have a very high unemployment rate. So where there's poverty, there's also crime. So you couple that with the mass layoffs that we experience January 18th, 2011, it's a breeding ground, so to speak, for the criminal element to grow.

KAYE: And then you have some citizens who probably so fed up that they are trying to take things into their own hands. How do you feel about citizen patrols? I mean can they stop the crime? Are we looking at possibly some dangerous vigilante justice.

WILLIAMSON: Well, we are fortunate in the city of Camden where we don't necessarily have citizen groups that are taking up arms and taking -- trying to take back the streets. I would never encourage any type of citizen groups or any type of vigilante justice. I think that ultimately the residents and the community should leave policing to the public safety experts, which is the police department.

KAYE: So I hate to ask you to point fingers but I'm going to. I mean who do you blame here? Do you blame the lawmakers for their decisions? What other options are there when a city is under such pressure to make some cuts?

WILLIAMSON: Well, I think there's enough blame to go around. But ultimately there -- you know, I do throw a lot of blame on the lawmakers because there is a growing consensus around the nation that it is OK to do more with less and lay off police officers. You cannot -- you can never ever put a price on public safety. That should first and foremost as lawmakers and speakers for their constituents, the first duty of government is to protect the public.

KAYE: John Williamson, thank you very much.

WILLIAMSON: You're welcome. Thank you for having me.

KAYE: Next hour, an unsolved murder that has rattled nerves and haunted investigators. Police have never found who beat up a teenager girl to death in 1982. The case was dubbed Princess Doe. The lead investigator and an author, who have dedicated their lives to cracking the case will join us live.

America's bully coach, Mr. Mojo, as he's called is giving kids the inspiration to stand up to bullies. He joins me next on what he tells kids in school to try to end bullying.

The future of interactivity, it is the focus of this week's "The Next List," with our Dr. Sanjay Gupta.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: You know, before the iPad I used to joke that I made useless programs. But they are as useless as a song, a movie, a story, something like that. All of a sudden with the iPad I could just go directly to people and say check this thing out. We don't even have to label what it is, it is called Gravel X. It's called Bubble Harp. See, if you look it, and all of a sudden they did.

(END VIDEO CLIP)

KAYE: Tune in Sundays to watch "THE NEXT LIST" or set your DVRs 2:00 p.m. Eastern. (COMMERCIAL BREAK)

KAYE: Welcome back. Every week I like to take time to talk about the issue of bullying at this time in our program. You hear about it every day. And so many kids are affected by it. Well Travis Brown is doing something about it. He's going into schools and giving not only kids but also the schools themselves the resources to help stop bullying.

(BEGIN VIDEO CLIP)

TRAVIS BROWN, OPERATION MOJO: I truly believe suicide is a permanent solution to a temporary problem. Some students don't know there's a way out. We don't ever want to be the person who is pushing somebody closer to the edge. Those in the room feel attacked every day by some type of bully, let me say this. You are good enough just the way you are.

(END VIDEO CLIP)

KAYE: Travis Brown, otherwise known as Mr. Mojo is visiting 200 schools this year tackling the issue of bullying and he's taken some time to chat with us this morning from Indianapolis. Travis, good morning to you.

BROWN: Mojo up, mojo up, good morning.

KAYE: I love the mojo. All right. So you're called Mr. Mojo. How did you get the name? How did you get this great reputation?

BROWN: Well, you know, as a speaker you're always out there, you're speaking, you provided knowledge, energy, excitement, inspiration. And my program is called Operation Mojo. One day a lady kept saying, "Hey, Mr. Mojo, what's your first name?" The more I kept speaking on it, the more it kept sticking, and so today it's Mr. Mojo.

KAYE: You know, so many people have been trying all kinds of ways to get kids to stop bullying others. When you go into schools and you talk with students as Mr. Mojo, what do you say to them to inspire them and try to get them and stop this horrible behavior?

BROWN: Well, it starts with relating to the students exactly where they are at, understanding all the challenges that they are going through. You know the things that are 21st century situations like kids are dealing with. And so, my message is about teaching everybody to realize that you can accept and respect the differences that of us have. And I do it in a fun unique way that you know, I think kids sit there and they go, I get this, I understand this. And when I walk out of those gyms and auditoriums, they are ready to do something different. They are ready to take a stand. They're ready to make a difference.

KAYE: And you have specific steps that you share with the schools to work with the students and also the parents to help try and prevent bullying, can you share those with us?

BROWN: Well, one of the frustrating things that happened early on in my speaking career, was the students were ready to do great things but they didn't have the systems in place from the school and even their parents to kind of carry it out. So we developed our bullying prevention program that allows school systems to put the whole entire program in place.

And so we educate the staff, students and parents. But we work with the schools on their policies and procedures. We work with them on how to commit to a community wide educational program, how to develop a student task force. And we put all that stuff together for them. So all they have to do is actually implement it and start seeing changes in their schools.

KAYE: Why was this so important to you? Were you ever bullied?

BROWN: Well, I think all of us at some level have had a situation where we have been attacked, people talked about certain things what, you know, I call the core, the place on the inside where people just get to you. And I think I have experienced those situations. But it really came to me because I was teaching leadership. And kids kept saying, "Mr. Mojo, how do we deal with this bullying thing?" And I think I was like a lot of people out there, I didn't realize the magnitude of it.

But you know, now that I talk about this and I work with students, the messages that I get, the broken hearts that I hear. The things that kids are dealing with, it just inspires me to go, I need to do a better job myself, creating more products, more programs, finding better ways to get my message to the administrative level, to infiltrate it throughout the entire school. So I'm just motivated to make that difference for kids.

KAYE: So when you talk to these kids, I mean can you tell when there's that moment where maybe something clicks and then say, "Hey, wait a minute, Mr. Mojo is right, I shouldn't be doing this."

BROWN: Well, I think the cool moment is when a kid comes up to me afterwards and says "You're never going to believe what happened to me." The kid that's been bullying me for two years, I just a text message, they are apologizing to me. Well the kid that comes up and says, I didn't realize the impact that I had on other people. "Mr. Mojo I promise you I'm not going to treat people that way anymore."

And so when you start getting those things like that was the data that I needed to know that my message was getting to the point where students were receiving it every single day.

KAYE: Well, Travis Brown, I am feeling your mojo this morning. So I am right there with you. This is such an important issue and I'm so glad that you're doing so much to help prevent bullying in schools. Thank you so much. Mr. Mojo.

BROWN: Thank you for having me.

KAYE: And if you would like to sound off on stories about bullying. Take a moment, get onto Twitter and tweet me right now. Use hashtag "bullyingstopshere". You can find me @randikayeCNN. I would love to hear from you.

Doctors are supposed to make you feel better. Well, hear how this dentist in Colorado made 8,000 of his patients feel much worse. They just got word he may have put them at risk for a very serious infection.

(COMMERCIAL BREAK)

KAYE: Some 5,000 patients in Colorado just received letters this week that they are at risk for HIV and hepatitis B and C, and they need to get tested. The Colorado Public Health Department says this dentist, an oral surgeon, Dr. Stephen Stein put them at risk because he reused syringes and needles when injecting medications. This is the video from the Web site from the doctor who is no longer practicing.

And in New York, two dogs tied the knot in the world's most expensive wedding. Yes, according to Animal Fair.com. The wedding costs a quarter million dollars for dogs. There is the groom, Chili, on the floor and the bride little baby hope. And of course, celebrities made an appearance, sort of Triumph, the insult comic dog gave the final vows. We're told proceeds went to the local humane society. Pretty unbelievable but made for some cute pictures and they got on CNN.

A teenager found dead, no arrest, no known witnesses. Police don't even have her name. But we'll tell you why investigators feel like they are closer to a break than ever before in the case of Princess Doe.

And lost and found story that has defied all expectations. The man on the stretcher somehow survived on his own in the desert for weeks. The pilot who helped rescue him will be here live to talk about it.

And Mitt Romney at the NAACP convention.

(BEGIN VIDEO CLIP)

MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: -- I'm going to work to reform and save -

(END VIDEO CLIP)

KAYE: He's booed, but at least he went, unlike the man that he's running against. All those stories and much more in the 10:00 Eastern hour. Please join me for that.

"YOUR BOTTOM LINE" starts right now.