Return to Transcripts main page
CNN Newsroom
Markets Get Boost From Report on Unemployment Claims; What's Happening on Wall Street; Brits Reclaiming Their Streets; Tavis Smiley and Dr. Cornel West Discuss Their Poverty Tour; Texas Town Looking to Turn Urine into Water; Jobless Rates in Two California
Aired August 11, 2011 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SUZANNE MALVEAUX, CNN ANCHOR: Live from Studio 7, I'm Suzanne Malveaux. Want to get you up to speed for Thursday, the 11th of August.
Stocks shot out of the gate this morning. Investors have not looked back. At least not yet.
Right now, Dow blue chips are up by 261 points. 'Volatile" is the keyword of the day though when it comes to stocks. These gains continue this week's pattern of up one day, down the next.
Well, a positive signal today for people looking for work. Fewer Americans filed first-time jobless claims last week. The Labor Department says it got 395,000 initial claims. Now, that's a drop of 7,000, and it's the first time the number has dipped below 400,000 since early April.
The United Nations says the drought ravaging the Horn of Africa has not peaked. That means a long-term threat of famine. The U.N. says that 12 million people, if you can believe that, are at risk. And it desperately needs more than a billion dollars to feed them.
Musician and activist Bono talked with our Anderson Cooper, who is reporting from Somalia this week.
(BEGIN VIDEO CLIP)
BONO, MUSICIAN AND ACTIVIST: People watch the values -- you know, stock values -- crumble while, you know, while I think about our own sense of values tumbling. Because this will define who we are. This is a defining moment for us and there's lots to distract us.
(END VIDEO CLIP)
MALVEAUX: A few protesters challenged police, but streets in London and other cities were mostly calm overnight. In fact, there was much more action in the courts as judges stayed on the bench all night to process hundreds arrested in this week's rioting and looting. Prime Minister David Cameron told an emergency session of parliament that more arrests are coming.
(BEGIN VIDEO CLIP) DAVID CAMERON, BRITISH PRIME MINISTER: We're making technology work for us by capturing the images of the perpetrators on CCTV, so even if they haven't been yet arrested, their faces are known and they will not escape the law.
(END VIDEO CLIP)
MALVEAUX: Analysts estimate that violence and looting have cost at least $161 million in damage and lost sales.
Well, Los Angeles police are expanding their investigation into the "Grim Sleeper" serial killer case. Suspect Lonnie Franklin, Jr. is currently charged with the murders of 10 women. Detectives will now review 230 missing persons cases and homicides in Franklin's neighborhood going back to the 1970s. The "Grim Sleeper" case got its name because of a 14-year gap in the killing spree.
A brother/sister crime team is in custody and facing charges in three states today. Police captured the Dougherty trio after a Wild West chase and shootout along Interstate 25 in Colorado. It ended when the fugitives flipped their Subaru and crashed. Now, police say the siblings' crime spree started eight days ago when they took shots at a Florida police officer and robbed a bank in Georgia.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: They were prepared for a battle. And that's what they got.
JIM DAVIS, COLORADO DEPT. OF PUBLIC SAFETY: The female defendant took off running through a field. She had an automatic pistol. She turned and made an attempt to chamber around and point it at the officer, and he fired at least one shot, striking her, I believe, in the leg.
(END VIDEO CLIP)
MALVEAUX: It is not clear when the Doughertys will make their first court appearance yet.
Well, keep an eye on the top of the video. This is unbelievable.
She is walking down the street, minding her own business, when she is covered, practically smothered. A truck flipped over, burying a woman in China under 20 tons of garlic and onions. That's right. She survived, needless to say. She is a bit bruised, battered, a little smelly as well.
Well, stocks bounce into positive territory. The markets got a boost today from that encouraging report on unemployment claims, but it still could be a pretty bumpy ride ahead.
I want to go to Alison Kosik at the New York Stock Exchange.
And Alison, what are we seeing the markets do today? How are they behaving right now? ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Right now at least we are off that roller-coaster ride for the time being. We're seeing stocks at their highs of the session. The Dow, up 282 points. The Nasdaq, up by more than three percent. And the S&P, up by just as much.
Yes, I think what you are seeing is investors focusing on that better-than-expected jobs report. We also got some pretty decent earnings from Cisco Systems. It says it's making progress in cost- cutting measures. Even though those often result in job cuts, the market does like to see progress being made.
But keep in mind, this is a market on edge. You know this, Suzanne. These numbers can change on a dime, especially when it's a market that's being driven by each and every headline that comes out -- Suzanne.
MALVEAUX: That's right, Alison. All of this volatility, do we think that it is leading to more concerns about perhaps even another recession?
KOSIK: Well, you know what? If you look at the week, how the week has gone so far, some traders that I have been talking to say what you have been seeing is a market that's pricing in the growing likelihood that we could go into a new recession.
You are also seeing this in a CNN Money survey. Economists are actually upping their odds of a recession from 15 percent to 25 percent. Even more notable economists are upping that to 50/50.
And they blame this recent sell-off. But you have to remember that a sell-off does not necessarily lead to a recession.
Sure, it hurts our feelings of being wealthy, it makes us feel less wealthy when we see our investment accounts go down, as they have this week. It hurts our confidence. It has that psychological effect, and it could cause Americans to pull back on their spending. That's really where you could see it hurt, because it's that self- fulfilling prophecy where you see that spending cutback, and that could essentially hurt the economy -- Suzanne.
MALVEAUX: All right, Alison. We are all trying to just hold on here and not panic during this kind of roller-coaster ride.
KOSIK: You got it.
MALVEAUX: Thank you very much, Alison.
Here is your chance to "Talk Back" on one of the big stories of the day. Today's question: Does Hollywood making a bin Laden movie warrant an investigation?
Carol Costello, she's joining us from New York to explain this story.
Carol, what's this about? CAROL COSTELLO, CNN CORRESPONDENT: Well, the question: Does Hollywood making a bin Laden movie warrant an investigation? That question, like everything else in Washington, has become a political hot potato. A sad thing, since Osama bin Laden's death was so unifying.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Tonight I can report to the American people and to the world that the United States has conducted an operation that killed Osama bin Laden.
(END VIDEO CLIP)
COSTELLO: Remember how people celebrated after the president said that? It was a secret mission that played out a whole lot like a Hollywood movie. And don't you know it, a Hollywood movie will be released in October of 2012, just ahead of the November elections.
Republican Representative Peter King is outraged.
(BEGIN VIDEO CLIP)
REP. PETER KING (R), NEW YORK: We're talking about revealing classified information that can put American lives at risk. And what the administration has done --
(END VIDEO CLIP)
COSTELLO: Congressman King wants the Defense Department and the CIA's inspectors general to investigate whether Hollywood is getting special access, you know, to declassified information from the president.
The White House says, please.
(BEGIN VIDEO CLIP)
JAY CARNEY, WHITE HOUSE PRESS SECRETARY: First of all, the claims are ridiculous. When people, including you in this room, are working on articles, books, documentaries, or movies that involve the president, ask to speak to administration officials, we do our best to accommodate them to make sure the facts are correct.
(END VIDEO CLIP)
COSTELLO: It's not like the White House is giving Hollywood permission to use those Bin Laden death photos or the video of Bin Laden being buried at sea for the film. For those of you keeping score, though, at home, it has only been a little over three months since Bin Laden was killed. And come 2012, the story of that top- secret mission will be opening at a theater near you.
So, the "Talk Back" question this morning: Does Hollywood making a Bin Laden movie warrant an investigation?
Facebook.com/CarolCNN. I will read your responses later this hour.
MALVEAUX: That's an interesting question, Carol. I kind of wonder who's going to play Bin Laden. I wonder who these actors are going to be that are going to star in this movie. There's all kinds of fodder for that. Don't you think?
COSTELLO: I know. That's a whole other bit of controversy. Well, maybe no controversy, but it would be fun to come up with actors who would play those real-life roles, wouldn't it?
MALVEAUX: Absolutely. We'll do that over the weekend. Come back on Monday for that.
All right. Carol, thanks. Appreciate it.
Here's a rundown of some of the stories that we're covering.
First, who is to blame for all the volatility in the markets? We're going to ask a long-time trader.
And then, a father asks, why do we have to kill one another after losing his son in the British riots.
Also, two men tour the country to draw attention to poverty, and they're throwing some blame at the president. I talked with radio host Tavis Smiley and Professor Cornel West, right here in the studio.
And --
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: It's coming this way, partner! Run!
(END VIDEO CLIP)
MALVEAUX: -- a bull on the loose downtown. And it's all on video.
Also, turning sewage into drinking water in bone-dry Texas.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: That's not a good idea at all.
UNIDENTIFIED MALE: You don't like it?
UNIDENTIFIED MALE: No. If they do, we're going to have to leave town.
UNIDENTIFIED MALE: Really?
UNIDENTIFIED MALE: Yes.
(END VIDEO CLIP)
(COMMERCIAL BREAK) MALVEAUX: We're watching the markets, and stocks are in positive territory so far today. An encouraging report on jobless claims helped push stocks higher. Right now, the Dow Jones looking at up 268 points.
We're going to keep you updated on how the markets are doing throughout the day. And all the commotion on Wall Street, well, it's even got the E-Trade baby freaking out.
Check out this recent YouTube spoof of this well-known ad.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: God! It just dropped 400 points. This is not happening. Dear Lord! I think I'm going to be sick.
Oh my God. Yes. I'm going to jump out the window now.
(END VIDEO CLIP)
MALVEAUX: Well, we all kind of feel that way a little bit, the eTrade baby.
But Washington (INAUDIBLE) the market these days. Really, it makes a lot of people kind of fell uneasy here, especially those whose retirement funds are tied to Wall Street's wild ride.
Well, I'm joined with someone, an insider's view of the situation, on the floor. Kenny Polcari, he's a trader on Wall Street.
Kenny, you know, we know there are a lot of factors at play when we ask why these markets have been tanking. But, you know, this is not just a downward decline. We have seen traders buying, selling, at this frantic rate. the chairman of the Australian Stock Exchange recently said the average amount of time that a trader holds on to a stock is down to just about 20 minutes.
Kenny, tell us, why are the stocks moving so much faster right now?
KENNY POLCARI, STOCKBROKER: Well, you know, Suzanne, you have to understand who we are talking about when they make that statement like that. If you are talking about a day trader, someone that makes their living trading stocks, that very well may be true.
If you are talking about Joe Q. Public and the average American that's investing for their retirement or investing for education or investing for a future reason, then that's absolutely not the case. Those are people that are committed long term, they buy and they hold. But today what we are seeing and what we have seen -- go ahead.
MALVEAUX: No, go ahead. Tell us, what are we seeing today?
POLCARI: So today what we are seeing, clearly the market is up at the moment. We're up 265. And it's finding its level. We've had some technical damage done to the market over the last week and a half, which is really more just the market having re-priced risk from around the world, taking into account the macro data that we see coming out of Europe, the macro data that's coming out of the states, coupled with the political drama taking place all around the world. And the market now takes a step back and re-prices risk, which is what we have seen.
People should not really be concerned about that, because what gets lost, I think, in the conversation is, just because the market is under pressure doesn't mean there is no one on the other side. People don't just sell into the abyss. Right? There's always -- when there is a seller, there is always a buyer.
MALVEAUX: And Kenny, explain to us how this actually works, because, you know, you have got kind of a behind-the-scenes look here. Is this a matter of just electronic triggers, online trading, where a computer will kick in, trade, buy, sell? Are they day traders who are trying to make a fast buck?
POLCARI: Well, certainly, listen, that is one segment of the population, are day traders and high-frequency traders that really rely on computers to make buy and sell decisions for pennies. Right? but that's really not what is ultimately pushing the market around.
Technology has created efficiencies in the market. They've helped manage risk in the market, manage risk for asset managers. But if you are talking once again just about that small segment, yes, then computers allow them to make instantaneous trades, back and forth, in and out, all day long. That's true, absolutely true. But that's not really the driving force behind what goes on here.
MALVEAUX: And Kenny, explain to us, because in the eyes of the general public, the driving motivation on Wall Street seems to be turning a quick buck here. Why should people trust Wall Street with their long-term investments like their retirement funds?
POLCARI: Well, because, clearly, listen, if you are looking for growth, right, the stock market has always been the place to come. When you talk about long term, you are investing in the future of companies, you're investing in the future of America, you're investing in futures of international companies when you come here, because we have got U.S. blue chip companies, we have got foreign blue chip companies that trade here. And so, therefore, in terms of real growth and long-term investment, stocks have always been one of the asset classes that you should use.
So, on days like we have seen the last week and a half, when the market is under pressure due to kind of change in forecast, global forecast, U.S. forecast, then long-term investors should actually view it as an opportunity, because, listen, the market is on sale at the moment. Right?
When you go into Macy's when they're having 40 percent off, what do people do? They go in and they buy because it's 40 percent off. That's essentially what you are seeing here. So, when a long-term investor wants to add to their portfolio, days like today, days like we have seen are actually very good.
MALVEAUX: All right. We want a good day. Thank you, Kenny.
Kenny Polcari.
Appreciate it. Thanks.
Here is a look at today's "Choose the News" choices. Text "22360" to vote for the story that you would like to see.
First, 17 Navy SEALs were killed in Afghanistan over the weekend. We'll hear from military experts about the long and expensive process to shore up the ranks of the country's most elite fighting unit.
Second, in the middle of a war zone, one Libyan man has a unique weapon. He is using his paintbrush in the fight for freedom. And each of his portraits has a message to the country's dictator.
Or third, secret American agents heading south and helping fight the drug war in Mexico. A closer look at the new partnership between the U.S. and Mexico that may be behind some recent high-profile arrests.
You can vote by texting "22360." Text "1" for Shoring up Navy SEALs; "2" for Libya Street Artist; or "3" for U.S. Agents to Mexico.
The winning story will air in the next hour.
Well, people in Britain, they have had enough. We're going to show you how they are using social media to reclaim their streets from rioters. A live report from London.
(COMMERCIAL BREAK)
MALVEAUX: Police have started raiding homes in London and rounding up suspected rioters. Prime Minister David Cameron told an emergency session of parliament that looters will be tracked down and prosecuted.
A massive police presence overnight finally stopped the violence, but not before three British Pakistani men were killed trying to protect a business. It is just more pressure on already strained relations between Britain's black and Asian communities.
The father of one of the victims delivered a plea for peace.
(BEGIN VIDEO CLIP)
TARIQ CHOHAN, VICTIM'S FATHER: Blacks, Asians, whites, we all live in the same community. Why do we have to kill one another? What started these riots and what's escalating? Why are we doing this?
I lost my son. Step forward if you want to lose your sons. Otherwise, calm down and go home. Please.
(END VIDEO CLIP) MALVEAUX: A growing number of British residents are now taking matters into their own hands to protect their communities, but it's creating another problem for police. Our Atika Shubert, she's reporting from London.
(BEGIN VIDEOTAPE)
ATIKA SHUBERT, CNN INTERNATIONAL CORRESPONDENT (voice-over): Pauline Pierce (ph) became the voice of London when she faced down looters with this defiant speech that went viral on YouTube, with thousands of hits.
PAULINE PIERCE (ph), RESIDENT: This is about (EXPLETIVE DELETED) who got shot in Tottenham. This isn't about having fun and busting up the place. Get real, black people! Get real!
SHUBERT: London is fighting back. As this video from "The Guardian" newspaper shows, the Turkish community managed to scare off dozens of would-be looters before the police showed up in their neighborhood. Young Sikhs stood guard outside their temple in west London. And in the north of the city, angry local residents chased after any suspected looter. Anger that verged on mob violence.
Riot police faced off not with looters, but local residents.
STEVE KAVANAGH, DEP. ASST. COMMISSIONER, LONDON METROPOLITAN POLICE: My officers need to focus on rioters and looters, not those vigilantes. The ones that help us are the community representatives who go and speak to people from their community and get them away and get them home, not people who threaten violence on anyone coming into their community.
SHUBERT (on camera): Londoners may want to reclaim the streets, but police are warning them not to go vigilante. Instead, they say locals can help by going online.
(voice-over): London police have set up a Flickr page with photos of looting suspects, appealing to the public for help identifying them. That has inspired netizens to set up their own pages like Catch A Looter, also using hashtags to out Twitter users that have admitted to looting.
Others are using social media to get the city back on its feet. Riot cleanup is organizing neighbors and equipping them with brooms in the hope community solidarity will speed recovery and keep the violence at bay.
(END VIDEOTAPE)
MALVEAUX: Atika Shubert joins us live from London.
And Atika, today we heard from Prime Minister Cameron, who said that police admit that they waited too long to take action against these rioters. Now, do authorities think that they've got this situation under control now? SHUBERT: They do, but there is always the fear that this could happen again. Again, there is a lot of frustration and anger just under the surface, and it doesn't take much to spark it up again.
Basically, what the prime minister said was that the problem was police thought of this as a public order problem, not a criminality problem. And that is why the police say they basically waited too long.
It does appear now that the police are willing to take much tougher measures. They, for example, have a water cannon on 24-hour notice. They will be using batons, possibly. So these kind of measures could keep things in line the next time trouble flares up. But again, getting to the root cause of the problem is going to take a lot more time.
MALVEAUX: And let's talk about the root cause of the problem, because we heard the prime minister today blaming the violence on what he calls opportunistic thugs and gangs. But, you know, this all started -- a man was allegedly killed by police. It prompted this demonstration, the riots started.
What do we know about this investigation into this initial killing?
SHUBERT: Well, that independent police investigation is still going on. We do know a few things.
For example, police initially claimed that there was an exchange of gunfire between the man, Mark Duggan, and police. That's now being called into question because it was found that the firearm that the suspect had in his possession hadn't been fired at all. So a lot of questions are being asked. The family says they want justice, but they don't want to see this kind of violence being conducted in his name.
It does appear that even though that shooting was the initial spark, what carried on afterwards was that sort of opportunistic criminality. And the prime minister today said part of the blame lies with gangs. And he's actually talking to people in L.A. and New York that have dealt with gang violence there in the hope that their expertise will help here in Britain.
MALVEAUX: All right. Atika, thank you so much. We appreciate it.
Well, they say that the government is turning its back on the poor. Talk show host Tavis Smiley and Professor Cornel West join us to talk about their Poverty Tour. And find out what they want the president to do.
Also, we were curious about the definition of poverty in the United States. Based on the income of a family of four, what is the poverty guideline that is set by the government? Is it $22,000 a year, $32,000, or $42,000? That answer in a moment.
(COMMERCIAL BREAK)
MALVEAUX: We asked based on the income of family of four, what is the poverty guideline set by the government: $22,000 a year, $32,000, or $42,000? The answer, $22,000.
According to the Department of Health and Human Services, a family making below that amount means it meets the definition of poverty.
Well, here is a rundown on some of the stories that we are working on.
Next, two men who think President Obama is not doing enough to get millions of Americans out of poverty. My conversation with Cornel West and Tavis Smiley.
Then, a Texas town that is bone dry from drought turns its desperate eye to what some call a disgusting water source.
And later, your answer to today's "Talk Back" question. Is Congressman Peter King right to call for an investigation into a movie on the hunt for Osama bin Laden?
Well, these are tough financial times for many of us, but especially for the millions of Americans who are living in poverty. Almost 44 million people were living below the poverty line in 2009. That's according to the most recent figures from the Census Bureau.
Talk show host Tavis Smiley and Princeton University Professor Cornel West are on a multi-city bus tour to draw attention to poverty in the United States. They have also been critical of President Obama, accusing him of neglecting the poor.
And they're with us here in the studio this morning.
Thank you very much for joining us.
DR. CORNEL WEST, PRINCETON: We're very blessed to be here.
TAVIS SMILEY, RADIO TALK SHOW HOST: Good to be here.
MALVEAUX: Appreciate it.
WEST: Blessed to be here.
MALVEAUX: I'm going to start with you, Tavis.
What have you seen on the road when you talk to people and talk to families, what are they dealing with? What's poverty look like?
SMILEY: The new poor in this country, Suzanne, are the former middle class. The new poor are the former middle class. It's been so easy politically speaking, as you know, as you well know covering the White House for so many years, talking about the middle class. But the middle class is now falling quickly into the poor. The Children's Defense Fund put a report out there today that from year 2008 to 2009, more American children fell into poverty during that one year during any other time during recorded history. The poor are growing exponentially in this country, but at the same time being rendered invisible. Poverty is at the periphery of our political conversation and it ought to be at the epicenter.
MALVEAUX: And, Professor, what does it look like? Are we talking about people who don't have running water? Are we talking about people that don't have televisions? What's poverty look like in this country?
WEST: There's a number of different forums. We slept on the street, homeless in Washington, D.C., or it's going to be with a white poor family in Mississippi -- takes a number of different forums. But for the most part, it has to do with not acknowledging for dignity and the precious humanity of poor people of all colors. Not enough food. Not enough jobs with a living wage. Not enough housing that are decent.
And, of course, we began with our indigenous people which is to say our brothers and sisters in Wisconsin.
MALVEAUX: Both of you have been critical of the president. But the president has put forward ideas and plans. He is talking about trying to extend unemployment benefits, provide more food stamps and stacks breaks for families.
Why the criticism? Why do you say he needs to do more?
SMILEY: Well, I think the president ought to do more. And I hate when people try to get -- because if we are only talking about the president, I don't care how many times we call the Republicans obstructionists, how many times they got to stop say no, and how many times do we say they are so much worse than the president. People want to focus for ratings and for sensationalism on our comments about the president.
Having said that, the president ought to do more. The poor ought to be a priority. He ought not to have signed that debt ceiling legislation, that raised the ceiling, but put a hole in the floor that poor people are falling through with no extension of unemployment benefits.
When you say the president wants to extend unemployment benefits, why sign legislation that did not extend unemployment benefits? That's the question.
MALVEAUX: Well, you understand that he has to work the Republicans. He has to work with Congress. He can't unilaterally act on his own.
But, Professor West, you have said before specifically to the president that you don't believe he has the backbone here to push this forward. Why see this as some sort of character flaw as opposed to just a different approach to poverty? WEST: Well, it's the intensity of the fight. We just laid a wreath for Martin Luther King, Jr., Coretta Scott King, these are folks that fought intensely and for -- important to keep in mind, it's not really just president. We are talking about greedy people on Wall Street.
We are talking about avaricious corporate elite who have a disproportionate amount of wealth -- 400 Americans have more wealth than 150 million Americans. That level of wealth and equality is morally obscene. There is no justification for that.
So, the president has to make a stand. Are you on the side of the oligarchs and the wealthy? Are you on the side of poor and working people? And that class war, and that's ugly -- that's why King is so important, we don't want revenge. We don't hatred. We want love. We want justice.
But that class war has been going on for a while and was getting worse and worse.
MALVEAUX: Talk about the class war. There's been a lot of attention about your criticism of the president and you have said before you called him black mascot of Wall Street, black puppet who has certain fear of free black men. Why go there? Why inject race into this?
WEST: It's not a matter of injecting race. It's a matter of trying to tell the truth.
One, if you have Tim Geithner and early on, Larry Summers, they come right out of Wall Street -- that's why Wall Street is doing well. Main Street is not. They tilt toward oligarchs and not to what every day people. That's an objective fact.
MALVEAUX: But you say black mascot. You say black puppet. Why that?
WEST: Well, because he's a black man. He's a black man. Should I just say mascot?
MALVEAUX: Why not?
WEST: Well, because as a president who is historically unprecedented and being a black president, there is some expectation that he would have deep care for Latisha and Jamal on the corner. Maybe I was wrong about that. But he is a black man.
He's also a black brilliant man. He's a black charismatic man. His wife is a brilliant black woman. She's a beautiful black woman.
I have nothing wrong with saying black. If I talk about Jewish genius Stephen Sondheim. Jewish gangsters, Madoff. That's not wrong with saying -- these are objective facts.
MALVEAUX: Do you think it's been unfair the criticism that both of you gotten from the black community you spoke out and been so critical of this president?
SMILEY: I think when you talk about the poor, as Dr. West is saying all the time, and when you talk about the poor, the closer you end up on a cross. People are trying to crucify you when you try to -- there is a reason about there's not a poor people's campaign or movement in this country. Because they are disposable, they are throwaway, they are the forgotten community.
When you do this kind of work, you are going to be a challenge, sometimes with merit and sometimes without merit. But it's about keeping the focus on the poor people.
We don't waste our time -- I don't, Dr. West doesn't -- responding to a bunch of senseless, you know, criticism.
WEST: Any time in America no matter what color you are, when you talk about poor people's dignity, you better put your cemetery clothes on and be coffin-ready because you could die in a minute. That's how much you love the poor people.
So, we're not in it to be popular. We want to serve. And we are Christians, so we're just bearing witness.
MALVEAUX: All right. Well, you guys are very popular.
SMILEY: Some sort.
MALVEAUX: But you are very popular now. We appreciate you bringing attention to this issue of poverty very much so.
SMILEY: Congratulations on your show.
MALVEAUX: Thank you.
WEST: Salute to the work you do.
MALVEAUX: Thank you very much.
SMILEY: Absolutely.
MALVEAUX: Appreciate it.
A reminder to vote for today's "Choose the News" winner. Text to "22360" to vote for the story that you'd like to see.
Text "1" for shoring up Navy SEALs. Military experts detail the process to replace 17 SEALs that were killed in this weekend's tragic helicopter crash.
Text "2" for Libya's street artist. Libyan using his paint brush in the fight for freedom.
And text "3" for U.S. agents in Mexico. Secret American agents heading south and helping fight the drug war in Mexico.
Winning story will air in the next hour. Well, the desperation now for water in Texas.
(BEGIN VIDEO CLIP)
ED LAVANDERA, CNN CORRESPONDENT: When you hear people say, oh, my God, these people are going to be drinking their own urine.
JOHN GRANT, COLORADO RIVER MUNICIPAL WATER DISTRICT: There was a fellow over in Midland that I heard made a comment that said at least he gets to drink his beer twice.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
MALVEAUX: We are going cross-country now for stories CNN affiliates are covering.
First off, Oklahoma, FBI agents are trying to find out who attached what appeared to be a crude bomb to a natural gas line. It was found Wednesday in a town 70 miles east of Oklahoma City. The device was disabled with a water cannon and taken to an FBI lab. Law enforcement official tells CNN they don't know what kind of damage it could have caused.
In Washington state, a teenage boy who was pulled out to sea by strong currents survives. He was part after church group visiting Long Beach when witnesses say a rip tide dragged him under water. After several days in intensive care, he is awake and talking to doctors.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: There is a bull! You might want to run. It is come thing way, partner! Run!
(END VIDEO CLIP)
MALVEAUX: Not your usual night on the job for police in Auburn, Washington. They were chasing -- that's right -- a bull through downtown in their squad cars. It was eventually caught. No one was injured. Strange.
And the drought in Texas has hit one town so hard it's planning to recycle the -- get this -- this is sewage into drinking water.
CNN's Ed Lavandera found out some residents are not happy about that.
(BEGIN VIDEOTAPE)
ED LAVANDERA, CNN CORRESPONDENT (voice-over): In this withering west Texas patch, oil still flows. Problem is you can't drink water. Finding water is getting tougher. It brings us to the town of Big Spring. (on camera): This is the spring in Big Spring. More than 100 years ago, it was a popular watering hole for settlers heading west. Those days are long gone. And you won't believe what people around here are having to do now to find drinking water.
(voice-over): Crews are now building a $13 million water treatment plant that will turn sewage waste water into drinking water by the end of next year -- treated raw sewage water will be mixed with lake water and treated again, three times in all.
BENITO LARA, BIG SPRING RESIDENT: I will never drink it.
LAVANDERA: But the idea still doesn't taste right to a lot of people, like Benito Lara.
LARA: That's not a good idea at all.
LAVANDERA (on camera): You don't like it?
LARA: No. If they do, we're going to have to leave town.
LAVANDERA: Really?
LARA: Yes, yes. You know, that's too much.
LAVANDERA: Are you kind of the salesman for this plan?
JOHN GRANT, COLORADO RIVER MUNICIPAL WATER DISTRICT: Somebody has to.
LAVANDERA (voice-over): John Grant directs the Colorado River Municipal Water District. It's his job to find drinking water for half a million people in the area around Midland Odessa. He's got to get people past one big hurdle.
(on camera): When you hear people say, oh, my God, these people are going to be drinking their own urine.
GRANT: There was a fellow in Midland I heard make a comment that said at least he gets to drink his beer twice now.
(LAUGHTER)
LAVANDERA (voice-over): This part of west Texas had a only seen about three inches of rain in the last year. The drought is drying out the areas in the three reservoirs.
(on camera): This is what's left of the E.V. Spence reservoir. It's the only source of drinking water for the nearby town of Robert Lee. Problem is: there's less than 1 percent of the water left.
(voice-over): Robert Lee Mayor John Jacobs says that the water situation is so dire that his town could run out of water in six months. Emergency pipeline is in the works. But he thinks turning waste water into drinking water is the future.
(on camera): On the surface of it, that doesn't sound appealing, does it?
MAYOR JOHN JACOBS, ROBERT LEE, TEXAS: Not appealing. Then again, going thirsty isn't either.
GRANT: This is the water we are going to be picking up and -- taking it back through the new water treatment plant that we are building.
LAVANDERA (voice-over): This new water treatment plant will provide 2 million gallons of water every day. And actually John Grant predicts people will really like it.
(on camera): And you are saying this process is -- could make it taste better?
GRANT: It could. And it will be -- it's good quality water with less salt as you can find anywhere.
LAVANDERA (voice-over): John Grant says he'll be the first in line to pour himself a glass.
Ed Lavandera, CNN, Big Spring, Texas.
(END VIDEOTAPE)
MALVEAUX: Which White House hopefuls are converging on the all important Iowa state fair today?
We've got some live pictures, I believe, that Mitt Romney is one of those folks who has taken to the podium. That's right. We see him there at the state fair in Des Moines making a speech. We're going to check in to see what he has to say.
But who is going to be trying out the famous fried butter? Who's going to go ahead tonight's Republican debate? We're live in Des Moines with the CNN Political Ticker, up next.
(COMMERCIAL BREAK)
MALVEAUX: The Iowa State Fair, popular stop in the campaign trail for Republican presidential candidates, and they are not there for the fried butter. Maybe they are, I don't know.
Paul Steinhauser, part of "The Best Political Team on Television," live from the CNN Express Bus in Des Moines.
And, Paul, you and I have been to plenty of these. And, fried butter, what do you think? Fried butter, is it all that good?
PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: You can never have enough and it is so good for you, Suzanne.
But, you know, honestly, this -- right now, this is the center of the campaign world right now, Iowa, and that's why we brought the bus here. You have to debate tonight, a presidential debate tonight here in Iowa; the first one in nearly two months since ours in New Hampshire back in June. You've got that straw poll on Saturday at Ames, Iowa, which is pretty crucial on the Republican side of the race for the nomination. And you've got the state fair, which is a must stop for anybody who is running for the White House.
In fact, live pictures now just about 50 yards behind me, Mitt Romney, the former Massachusetts governor, a Republican candidate, he's talking right now to the crowd. You know, Romney has not been making many visits here to Iowa, but he's here for the debate and he's speaking right now at the state fair.
Guess who is coming here as well? Sarah Palin. That's right. Our Peter Hamby, our political reporter, learning last night that Sarah Palin is bringing her one nation bus tour to Iowa. Maybe later today, probably maybe tomorrow or Saturday.
And this is a big surprise. You know, Suzanne, every time Palin drops out of the spotlight she jumps back in and maybe that's what she is doing. Palin says, of course, she will decide by September whether she will run for the Republican presidential nomination.
And, Suzanne, we are also keeping our eyes on Rick Perry. Saturday, in South Carolina, he's going to make a speech where he is going to make it clear he is running for president. All this stuff happening at the same time, Suzanne.
MALVEAUX: It's a full house there. Lot going on there where you are, Paul.
Do we know who the favorite is going into tonight's debate?
MALVEAUX: Well, one way to look at that, I guess, would be polling. We have brand-new CNN/ORC poll, we put it out this morning. Check this out, this is Republicans and Independents who lean Republican nationwide.
Look who is on top there, Romney, but look who is just behind them, Perry, who hasn't even announced yet. There you have Rudy Giuliani, former New York City mayor, Palin and Ron Paul, the congressman from Texas not too far behind. Pretty tight pack up there at the top.
Take Palin and Giuliani out because while they are flirting with the run for the White House, they really haven't taken any concrete steps, and look, Romney still on top, Perry not far behind at all. And you can see Paul and then everybody else in single digits.
Suzanne, we are at the state fair today and tomorrow. Then we're going to Ames for that straw poll. I'm going to grab you some fried Twinkies, going to send them to Atlanta. They are tasty, enjoy them.
MALVEAUX: I noticed the truck behind you, Paul, the fried Twinkie stand there. So pick one up for me. Yes, thank you.
All right, Paul, part "The Best Political Team on Television."
For the latest political news, you know where to go, CNNPolitics.com.
We're getting a lot of responses to "Talk Back" question. We asked: Does Hollywood making a bin Laden movie warrant an investigation?
Well, Harry Allen said, "No. Bin Laden is an important figure (an evil one) in American history. Republicans just fear that having the movie so close to the election will influence votes."
Carol Costello is back with more of your responses.
(COMMERCIAL BREAK)
MALVEAUX: You have been sounding of on our "Talk Back" question. Carol Costello is back with some of your responses.
Hey, Carol. What are folks saying?
COSTELLO: Well, Suzanne, today's "Talk Back" question: Does Hollywood making a bin Laden movie warrant an investigation?
This from George, "It does if it's timed for political persuasion and influencing voters decision. Release the film after the elections and there should be no corruption of the voting process."
This from Jonathan, "Why is this even a topic? Because GOP Representative King needs it to be. Have to turn a positive into a negative and say things that may not be fully correct, things that are unsourced and say them over and over and over again."
This from Dirk, "Maybe we should investigate how much time was wasted finding things to investigate. I continue to look at the bright side. It's going to be a great movie about American resolve. After all, our previous president couldn't get it done. Sounds like someone's jealous."
This from Max, "Of course, we need an investigation. Anything to get our legislators from doing their real job of running the government into the ground."
So a healthy dose of cynicism this morning, Suzanne. Holy cow.
Keep the conversation going, Facebook.com/CarolCNN. I'll be with you in a couple minutes.
MALVEAUX: They're not holding back, not today, I'll tell you.
All right, Carol, thanks again.
Well, there are two cities in California that are 250 miles apart. One has the state's highest unemployment rate, the other the lowest. We'll find out why. (COMMERCIAL BREAK)
MALVEAUX: Let's take you live to an event that's taking place in a Iowa State Fair in Des Moines, Iowa. This is where a number of Republicans have gathered for various events, debate and straw poll.
Mitt Romney, who was there speaking before a group of people, got heckled a bit by somebody who was frustrated. I want you to just take a listen to this exchange that happened just minutes ago.
(BEGIN VIDEO CLIP)
MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: We have to rise to 44 percent. We're not going to do that. And so --
UNIDENTIFIED MALE: Sir, I am on Social Security.
ROMNEY: I am glad you are on Social Security. Hold on just a minute. Hold on just a minute.
UNIDENTIFIED MALE: And my wife is on Social Security. And listen -- you came here to listen to the people. Well, listen.
(CROSSTALK)
(SHOUTING)
ROMNEY: Now, wait.
UNIDENTIFIED MALE: How are you going to strengthen Social Security for the future. We're on Social Security, and --
(END VIDEO CLIP)
MALVEAUX: A bit of a testy heated exchange there. Mitt Romney listening to a gentleman saying he was worried about his Social Security and where that's going to go. Obviously, all of that in this climate of an uncertain economy, and this debt deal that was just negotiated that the president and people looking for answers, quite frankly, about where the economy is going.
So a lot going on in Iowa, and a lot of politics and certain presidential hopefuls trying to answer questions to those who are a bit frustrated.
Well, CNN "In Depth," America's jobless. In a state as big as California, might expect to see distinct differences, right, in the number of people who are out of work. Well, CNN's Casey Wian found two cities at the top and the bottom of the state's unemployment chart where life, of course, very different, but in some ways very much the same.
(BEGIN VIDEOTAPE)
CASEY WIAN, CNN CORRESPONDENT (voice-over): Delano, California, a mostly agriculture community, has the state's unemployment rate. It's visible downtown and at the career services center.
JESSICA ALVARADO, LOOKING FOR WORK: It's very hard looking for work in Delano.
WIAN (on camera): How many jobs do you think you have applied for in the last three or four months?
ALVARADO: Probably like about 20 to 25.
UNIDENTIFIED FEMALE: I am discouraged, I guess.
WIAN (voice-over): Nestled in the hills 250 miles north, is Lafayette with California's lowest jobless rate and a downtown seemingly a world away.
JAY LIFSON, LAFAYETTE CHAMBER OF COMMERCE: So you have a lot of stay at home soccer dads, you know, people can who can afford to stay home and not be part of the workforce. You have a lot of small businesses here that are individually owned and a lot of home-based businesses as well.
So you add all those together and the unemployment picture looks pretty good.
WIAN: Here is that picture graphically. Delano's unemployment rate is nearly 37 percent, nine times that are Lafayette's at 4 percent.
The Swansons (ph) moved to Lafayette in November, attracted by its beauty and mostly its highly rated public schools.
UNIDENTIFIED MALE: Great public school system tends to be something that draws people to the town.
UNIDENTIFIED FEMALE: We felt if we could live in this community and send our kids to the public school, we would rather do that.
WIAN: Lafayette's location near Silicone Valley and San Francisco and convenient public transportation also help. Twenty percent of the residents are retirees. Nearly 20 percent of Delano's 53,000 residents live in its two state prisons, but most here are dependent on season farm jobs, Historically, the family trade for real estate on brokerage John Lara. His father helped Caesar Chavez organize farm workers.
JOHN LARA, REAL ESTATE BROKER: Since I was the oldest son, I'd help him carry the bags of beans and stuff that we used to -- my sister and my mom used to harvest.
WIAN: Now many of the jobs are done by machine.
LARA: Little by little, all those workers that normally would have done that during their season, now they are being phased out.
So cities like Delano, if they didn't prepare for that 20, 30 years ago, now they are feeling the effects of not preparing for industrial jobs, manufacturing jobs.
WIAN: Maribel Reyna is in her first week as the Delano's city manager.
MARIBEL REYNA, DELANO CITY MANAGER: Job creation is number one, truly. And we have some projects currently in the works that will help that job creation.
WIAN: Seven hundred jobs could come from this planned commercial center anchored by a Wal-Mart, 500 more are coming at this citrus packing plant.
REYNA: The city really is trying to take steps forward, yet with the economy and people being in such an emote of caution, it holds you back.
WIAN (on camera): Here in Delano, there are plenty of signs that the city continues to struggle to create jobs. There used to be two movie theaters in town. This is all that's left of the last one.
But here in downtown Lafayette, the economy remains strong, strong enough to support 65 restaurants in a town of just 24,000 people.
(voice-over): The city boasts a fiscally conservative local government that encourages residents to shop locally and doesn't fix roads unless there is money to pay for it.
DON TATZIN, DELANO CITY COUNCIL: We just don't take on things that we don't think we can afford.
WIAN: Though Councilman Don Tatzin helps lead the city with the state's lowest jobless rate, he's been out of work for nearly three years.
TATZIN: It's great that we have a low unemployment rate compared to other parts of California, but it still means we have four percent of people who are unemployed, and they are affected just as much as somebody who has been unemployed in a community with much higher unemployment rates.
WIAN: And is turns out, Lafayette has something else in common with Delano. Its last movie theater also has shut down, showing that even here, no job is safe.
Casey Wian, CNN, Lafayette, California.
(END VIDEOTAPE)
