good evening, everyone. we begin tonight with breaking news. late new details from inside today's debt crisis meeting. headline one, no agreement today. headline two, no meeting tomorrow after five straight days it's the end of the line for now. and headline three, the warning bells keep getting louder from the heart of capitalism to the capital of communism. standard & poors today signalling it may downgrade u.s. debt even if a default is averted. and the people's republican of china, red china, urging washington to raise the debt ceiling.

somewhere chairman mao is smiling. president obama went on record of his account of how last night's turbulent meeting ended. you'll recall house majority leader eric cantor said the president sharply warned him not to call his bluff said "i'll see you tomorrow" and walked out of the cabinet room. >> no. look. at the end of the meeting after we'd already met for a couple of hours, what i said to the group was what i think the american people feel, which is we have a responsibility to do the right thing. we shouldn't be overly partisan. we shouldn't be posturing. we should solve problems. >> well, whichever account rings true to you, today's meeting was the first to deal largely with revenue. we got late insight in a moment from jessica yellin and dploer yeah borger. but keeping them honest tonight, there's in polling you should know about that may surprise you showing what americans really think about raising taxes to close the budget gap. here's what republicans have been saying for a long time that americans think.

>> right now this economy is ailing. and we don't believe, nor do i think the american people believe, that raising taxes is the answer. >> american people understand that tax hikes destroy jobs. >> i think what the american people appreciate is that you don't reinvigorate the economy by raising taxes. >> 80% of the american people do not want to see taxes raised. >> the president's answer? let's raise taxes on job creators. mr. president, the american people don't want that. >> the american people don't want us to raise taxes. >> now, you can agree or disagree with the premise that taxes ought to be lower and government smaller. that's not what we're talking about. keeping them honest, when republicans say they are pushing for a budget deal containing no tax increases because that's what most americans want, according to every poll we have found that is simply not true. new polling out today from quinnipiac skrts voters if they support a budget deal with budget cuts only or mix or budget cuts and taxes on the wealthy and corporations.

25% said budget cuts only. 48% of republicans, not even a that joert, favor the cuts only approach. in the recent gallup poll, 26% of republicans favored lowing the debt with budget cuts alone. and just 20% of all votes did. in fact, all of the recent polling we've seen shows americans want a mix of spending cuts and tax increases. that goes for polling from gallup, quinnipiac, abc news, "washington post," bloomberg, reuters and uscla times. we're now negotiating today and why it won't happen tomorrow. in a moment we'll talk to james carville and carly fiorina,chief white house correspondent jessica yellin has details as does gloria borger. jessica here we are two weeks away from the deadline, still no deal. where do things stand right now? >> reporter: after five days of negotiations and almost eight hours of discussions, practically speaking they are no further along than they were

when this thing started last sunday. as you say, the president has said he wants this big deal but this thing broke up today, the meeting ended with the president telling these leader toss go back to their members and ask them what do they think can pass and then report back to the president with something that they believe can pass by this saturday morning. they're not even having a meeting tomorrow. now, despite all that i am told by my sources that there's not a lot of optimism that this particular negotiating process here at the white house is going to actually end up leading to the real deal, and a lot of effort and attention is now turning to a different process that's happening in the u.s. senate and another alternate deal that's being worked out between the two senate leaders that could instead end up raising the debt ceiling. a lot of hope is centered there, anderson. >> basically what is that deal? what is that negotiation based on? that's harry reid and mitch mcconnell. >> it's a little complicated but it would effectively raise the debt ceiling which would allow

for spending cuts that can be spelled out by the president but don't necessarily have to pass. there would also be a deficit commission that would allow for other spending cuts and also potential revenue elements and entitlement reforms. and it would allow people to vote against raising the debt ceiling instead of in favor of raising the debt ceiling so that members could then go to their voters and say, i voted no instead of i voted yes. >> so gloria, why is there this separate track now? i mean, what's been the point of these white house meetings? >> reporter: it's interesting because i spoke with one republican leadership aide just to echo what jess said, he said, look, it may be that the white house talks are becoming increasingly irrelevant here. because if you're a member of congress and you get to have it both ways and you get to vote no on raising the debt ceiling but then the debt ceiling passes, why not do that? if they can come up with that kind of a deal. the only problem with that is, and the big question is, i think, do you attach a

significant amount of spending cuts to it like $1.5 trillion either now or sometime in the future, or do you promise to set up a commission that gets a vote on a date certain in congress to do spending reductions and perhaps even tax reform? but it seems like that track as jess said is moving along a lot fast. >> and jessica, a lot of people seem to have written off the mcconnell idea a couple days ago, but now it seems like even some house republicans are maybe going to get behind it. >> reporter: well, yes, because there's so much uncertainty about the process that's happening here. but i don't want to get ahead of it because the house republicans are still very wary. it's not at all clear if it could get the votes there. the one thing i would say, anderson, is that everybody you talk to in town, democrat, republican, says, i have no idea how this is going to get worked out. i have no idea. but what they do say is, it's going to happen in the end

because as this approaches, people are going to be so terrified of voting no that these members who are saying no now are going to start to realize that this is what they're convinced of, start to realize that stakes are just too high and that this will come together in a sort of midnight hour vote. >> jessica yellin, gloria we'll see. i want to talk more about the political dividing lines as well as areas of potential agreement. carly fiorina vice-chairperson of the national senatorial campaign committee. also political contributor and democratic strategist james carville. james, we're told the president wants to see some kind of an agreement within 36 hours. what do you make of all this? how do you see this? >> you know, this is a great civics lesson. because we have the president and the congressional leadership. and they go to the white house and they sit around a table and everybody there. in reality what's going on is senator reid and senator mcconnell are kind of meeting in some closet or somewhere deep in the bow else of the capitol

scratching something on back of the napkin looks like it's going to be the kind of deal that's going to happen. one of these fascinating things of the way that washington works. and this thing will probably happen and as jessica was saying, it's going to happen late because the terror of what would happen if it doesn't, you go back and remember t.a.r.p. remember that voted that down and then they had to go back up the stock market fell 770 points. and everybody was trying to gain the system where they can vote no and it passes. but you need what like 218 house members to vote yes. somebody's got to bite the bullet here before it's over. >> carly michele bachmann and others are saying things will be tough but fine if there's no deal by the deadline, the dire warning by the president are just scare tactics. as a former businesswoman what do you think? >> well, i disgrow with that. i think we must raise the debt

ceiling. i think what's disappointing to so many americans is that a deal that could have been passed, that would have been passed has been on the table for at least six months. and that deal started with obama's deficit commission reporting out. the deal involves lowering the corporate tax rate and closing the corporate tax loopholes. it involves reforming entitlements in a simple way, in a simple way, to index medicare and to change the inflation indexes on social security. and it involveses some spending cuts. that deal has been on the table for a long time. and unfortunately i think james said it well. everybody's been gaming the system, including the president, i would add, and that deal hasn't been done. >> james, why hasn't that deal been done? >> first of all, one of the interesting things that we're reporting and gloria and jessica are on top of it this is they're going to have a commission that's going to have an up and down vote. if you'll remember, that was something that was proposed by the previous -- during the previous administration by senate republicans, president obama picked that up and said let's have a commission and have an up and down vote. seven republican senators changed their mind. now we're going to go back to that. we could have had that in february of 2009.

if they would have gone along the president did prope that and that's exactly what senator reid and senator mcconnell are talking about doing right now. well, sometimes it takes awhile to get there but maybe this is going to be a good idea. i don't know. >> well, unfortunately, though, the truth is that president obama hasn't proposed anything very specific except a budget in february of this year which was voted against 97-0. >> carly, he proposed to have a deficit commission that was on a fast track. it was like the base closing

commission. you could vote it up or down. seven republicans who were -- >> so he hasn't put forward a specific plan. >> but doesn't everybody -- >> anderson, your original question, we've got to come up with an answer here. >> doesn't everybody know, though, that some kind of a compromise has to be made? i mean, that both sides kind of ultimately to get something done, to get cuts, to deal with deficit, something compromise has to be made. i mean, is that not true? >> there's a large part of the sort of right wing media if you listen like talk radio, read the "wall street journal," that says to heck with it. just do it. it's not going to be that big a deal. listen to michele bachmann, listen to a ton of these house republicans, just shut the thing down. that's the only way you get a bill to do this thing. it's sinful to vote for this. and by the way, a majority of the country says that they're not in favor of increasing the debt limit. that's just a fact. >> and you also have people like nancy pelosi saying that entitlement reform is absolutely off the table even after the president of her own party put it on the table. so there are people in both parties who are playing games with. this i just think it's a shame that a deal that would have both raised revenue, to the tax

rates, and reformed entitlements and cut spending has been on the table in washington, d.c. for six months and it hasn't gotten done. >> well, i don't know of a single democrat that said that that is no big deal if we don't raise the debt -- >> nancy pelosi and others said you can't touch entitlements. >> i don't know of a single democrat that said it's not a big deal if you don't extend the debt limit. >> there are lots of democrats who said entitlement reform was off the table which is in essence the same thing. >> james carville, carly fiorina thanks very much. follow us on twitter @ anderson cooper up next, the man who claims to be an expert on terrorism. this is a fascinating story. we did part one last night. this is part two of it. claims to be an expert in terrorism because he says he used to be a terrorist himself? the problem is, cnn has found no evidence to back up his claims. and tonight, we have tough questions for him about how he runs his business, a business not only tax-exempt but taxpayer supported.

it's getting taxpayer dollars. keeping them honest. also tonight this just brakes your heart. video of an 8-year-old boy here in new york city just moments before being abducted and later murdered. dismembered by his killer. there was an arrest and now police say there's a confession. you're going to hear part of that confession tonight. it is chilling. details provide a horrifying window into an apparently very, very sick mind. we'll talk about that and the legal implications with sunny hostin and dr. drew pinsky. ok. [ cellphone rings ] hey. you haven't left yet. no. i'm boarding now... what's up? um...would you mind doing it again? last time. [ engine turns over ] oooohhhh...sweet. [ male announcer ] the chevy cruze with the my chevrolet app. the remote control car is finally here. well, now she's just playing with us. oh. [ horn honks ] it's schwab at your fingertips wherever, whenever you want. one log in lets you monitor all of your balances

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we're continuing our story on a man named waw lead shoebat. he lectures on anti-terrorism. he says he was once a terrorist and sells his consulting services sometimes at taxpayer expense. we revealed last night that cnn could find no evidence to back his claims he was once a terrorist who his arrest the in israel. he's not the only so-called expert whose background may not be as advertised. recent reporting finds that a number of so-called experts teaching and in some cases preaching about terrorism may not know what they're talking about.

the department of homeland security handed out $40 million in training grants. recently senator susan collins and joe lieber mann asked the department of homeland security and the justice department to account for how training dollars are spent on inflammatory teaching. >> reporter: it's clear walid shoebat does not like tough questions. >> this is a stupid question. >> reporter: he became more defensive when we began asking about his foundations, his tax-exempt status and all the money he is making. he has turned what some might call hate speech into a career, trading on his past to advise law enforcement officials and religious groups about the threat of islamic radicals. he says he was a palestinian terrorist, jailed by the israelis, but it's a life story based on very little evidence. but it sure pays well. tax records filed by his business partner reveal his speaking engagements earned more than 50060 -- $560,000 in 2009.

>> so why the skepticism if somebody collects half a million dollars you think it goes to my pocket? it's absolutely untrue. >> reporter: like his answers, his tax return is vague on specifics. and his business and foundations? well, that's vague, too. >> how much do you get paid for these? speaking engagements? >> not that much. probably if you look at my salary, i make like probably what a gas station makes, what a garage makes. everybody this i'm just raking in the dough which is absolute luteally incorrect. >> the walid shoebat foundation, is that a charity? >> the walid shoebat foundation is part of the ffmu. >> what does ffmu? >> basically we're in information. we do speaking and we do also helping christians that are being persecuted in countries

like pakistan. and we help christians who are suffering all throughout the middle east. >> and how do you do that? >> none of your business. >> isn't it anyone's business who donates to you? >> of course. but you see, a lot of the times if you disclose information who you're helping, it ends up biting them. >> reporter: the business in fact shoebat leaves up to his manager, keith davies, who was down the hall selling shoebat's anti--islam books. when cnn had specific questions about the business, like perhaps the names of the high-ranking generals and experts he said are on his board of advisors, well, shoebat said get the names from davies. >> walid said that you would be able to tell us about your advisory board. you guys said you have generals and other high-ranking officials? >> correct, yeah. >> can you tell us who they are? >> off the top of my head, yes. let me see. i'm trying to think. the name's gone blank. it will come back to me in a second. major general -- i can't remember the name. four star -- three star general

of the air force. irish name. thomas -- i usually know these all by heart. >> reporter: davies did come up with one name, a pilot, but no contact details despite repeated requests from cnn. we made calls to the individual, anyway, but he never called us back. the group's public tax forms lists only davies and a real estate developer as board members, both with the same address. shoebat and davies run several foundations and three web sites that are all linked. a confusion model, considering the group's tax returns for the past four years contain very little information. in fact, while shoebat has a foundation bearing his name, no tax forms could be found on public sites. davies said they are merged together. >> the other question wall lead said i should ask you is about the money.

>> you don't ask anybody else here about the money. >> well, you have all these foundations. and i'm trying to find out where this money goes in terms of charity, what is the foundation. >> most of the money is used to help persecuted christians in the middle east. the media doesn't want to talk about. >> i'll talk about it if you can give me any information about that. >> we have a web site that you can have all the information that we do on our web site. rescue christians.org. >> i've read that. it's very unspecific as to what exactly is going on, where the money is going. >> keith, i got to ask you because i do a lot of this type of reporting on charities, organizations that collect money for various funds. everything is not very transparent. this is -- are you running a scam here? >> oh, absolutely. >> six or seven years, files with the irs you can have a look at the forms. you'll be sent a copy of the tax returns if you want.

>> reporter: he never did. but we found some on other web sites. the money is coming from universities and churches and from your tax dollars. some of his appearances are paid out of homeland security grants. the dhs and inn south dakota told us shoebat was paid $5,000 plus expenses to speak at this event. and he was given security. but shoebat told us -- >> no, there's no expenses paid. the hotel i paid myself. the hotel i paid today myself. >> reporter: the bigger question may be why walid shoebat is in south dakota to -- year-round. jim carpenter is south dakota's homeland security director. >> what was the point of bringing him here? >> i think he brings a point of view that certainly is not necessarily mainstream.

it's not a south dakota-based point of view. he brings in commentary about living and being raised as a moslem and then converting over to christianity. >> so why would someone's religious conversion be important to homeland security conference in rapid city, south dakota? >> reporter: you know, i really couldn't figure that out. and based on further questions i really didn't get a good answer from jim carpenter with the south dakota department of homeland security. the federal department of homeland security, anderson, we went to trying to find out if they do any vetting of speakers if they had any idea about shoebat. if anyone in the federal government did what we have done, try to check out all his claims. well, what we got from homeland security -- "corrective action will be taken". we have not and will not tolerate training programs or any dhs supported program that rely on racial or ethnic profiling".

anderson, based on the three sessions we sat in on with walid shoebat in our interview with him we can tell you he does advocate profiling and flatly being suspicious of anybody who's moslem. >> and his reaction to you kind of turned ugly. >> yeah, it sure did. not just him, too. south dakota's homeland security people actually tried to keep us out of the conference. we got in only after they had to call the governor's office. as for shoebat, he did get testy. later sessions after that interview he began attacking the media, specifically cnn for doubting his story. he has since accused us and you, anderson, of being used by the council on american islamic relations, even suggesting that group was the primary source for our reporting, which of course is not true. >> and it's interesting. if somebody's running a legitimate foundation that's tax-exempt and stuff, i mean, usually they're very willing to be transparent and willing to give documents and stuff.

it sounds like those guys said we'll send you these documents and then nothing shows up. >> reporter: no. and it's all wrapped in the secrecy and security. they're under the impression we're asking for the names of christian families in the middle east that are being percent constitutesed. we're not. we're just trying to figure out where is the money going because we cannot find out where this money is going. >> all right interesting in your piece because shoebat said, oh, well, this foundation is part of this other thing. and it paid for speaking and teaching which basically is what he does. oh, and also helping christians. the other guy said it mainly goes to helping christians. and yet again no details. >> reporter: and i think you could see from the reporting, we couldn't get a straight answer about anything from just about anybody. that reporting continued in our various e-mails and contacts with these fellows after that. it was just a very confusing. and in the past when we've done reporting like, this the more confusing, the less transparent things are, the more questions need to be asked i think by dhs and other federal authorities.

>> interesting. drew, appreciate the reporting. great job as always horrifying story in brooklyn. an 8-year-old boy murdered. surveillance video of him walking in his neighborhood monday evening. his body was found 36 hours later. now a 35-year-old man is charged in the murder. police say there is a confession. we'll hear parts of it tonight also ahead casey anthony will walk out of an orlando jail just three days from now. brand-new detail about her release. we'll get a live update from gary tuchman in orlando. in you. but did you know those same germs can build up and form a resilient layer called biofilm? biofilm germs are strong enough to survive daily brushing. thankfully, there's listerine® antiseptic. its triple-action formula goes deep to penetrate biofilm, kill germs and protect your mouth for up to 12 hours. aaaahhhh... [ male announcer ] for a deeper clean, fight biofilm with listerine®.

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crime and punishment tonight, casey anthony will be free woman in just three days. tonight we have brand-new details about the logistics of her release given the high-profile nature of the case.

>> reporter: prisoners are released every day from the orange county florida jail bu perhaps none of them with the level of notoriety that will greet casey anthony when she sunday after her stung akwis tals. her attorney jose baez talked to abc news about how her notoriety could bring danger. >> are you wired about her safety? there's such antagonism towards her. >> i am. i am. and i'm afraid for her. >> will she have bodyguards? >> you know, we're in the process of trying to take that next step for her and assist her in that regard. so i don't know. >> reporter: so now there is an intense security plan in place. -- allowing two news photographers to videotape and take still photos of her leaving. once she's safely gone, we'll be aloud to televise the images of her going free.

>> i don't think they can treat her like any other inmate in terms of the release. it would be irresponsible given the frenzy surrounding casey anthony. because again, while she is in their custody prior to release, they have to protect her. so that release is still part of their purview. >> reporter: but where will casey anthony go? and will she change her appearance? after all, this is a woman whose face is now known everywhere in the country. >> if her attorneys are doing the right thin -- that is not going to happen. >> reporter: jose baez visited her in jail on thursday afternoon. he is not saying anything about casey anthony's plans. but another defense attorney cheney mason has issued some speculation. >> she's only 25 years old.

a decade from now hopefully she'll have some stability in her life and maybe a husband. and then they can be somewhere in montana and start over. >> reporter: casey anthony's journey to montana or elsewhere is only a couple of days away. >> so gary, do authorities expect demonstrators at the jail when she's released? >> reporter: well, all's quiet at the jail right now, anderson. but they don't know what's going to happen tomorrow night and sunday. they're prepared for the eventuality or the possibility of a lot of people turning out. >> and she does have fans. i understand you learned fans have actually been sending her money in jail. >> reporter: well, that's right. i mean, her parents have not sent her any money in the last three years. but we've seen records that have shown at least 15 different people have sent at least $470 to her account here at the jail which she's used for food, for cosmetics, for other purchases. and you wonder. why well we talked to one of the women who has sent money to casey anthony. her name is chrsti davis and she lives in the st. petersburg area.

she's in her 50s, on disability. she doesn't have much money. but she tells us she spent 40 bucks to casey anthony because she believes casey anthony's innocent. she's scared for casey anthony, and she says even before the trial started she knew that caylee drowned. that's what she tells us. >> gary, appreciate it. thanks stampede caught on tape as hundreds scramble to get a place in line. we'll tell you what the line was for, what all the fuss was about and what happened to some of those runners in this very hectic race plus a little boy shown in this surveillance video was walking home from his day camp alone for the first time. he never made it. details that are coming out now about how he was murdered are truly horrific. we'll tell you who's been arrested ahead. sibilities. in here, the planned combination of at&t and t-mobile would deliver our next generation mobile broadband experience to 55 million more americans, many in small towns and rural communities, giving them a new choice. we'll deliver better service, with thousands of new cell sites... for greater access to all the things you want,

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in crime and punishment, a close-knit religious community here in new york is reeling tonight from a killing that could only be described as depraved and profoundly profoundly disturbing. we want to warn you up front some of the details are gruesome. but the victim is a little boy named leibby kletzky. he was just eight years old. on monday he got lost while walking home from his day camp. it was the first time his mom had aloud him to walk home alone. they reportedly practice today make sure little leibby knew the route but he apparently missed a turn and got lost. you can see him in the surveillance video carrying his back pack and bag. imagine how scared he must have been realizing he was lost. so he asked for help. police say the adult he turned to was this man, levi aaron who was charged today with first degree murder and kidnaping. his lawyers say he hears voices and has lewis mates. police found leibby's remains yesterday in his freezer and a dumpster.

in the confession he said he panicked when he saw flyers with leibby's picture, when so many people were searching for him. neighbors were helping the police look for the boy since monday. the confession continues "that is approximately when i went for a tao toll smother him in the side room. he fought back a little bit until eventually he stopped breathing. afterwards i panicked because i didn't know what to do with the body". he goes on to describe what he did with leibby's body, too gruesome for us to repeat tonight. the confession ends with these words "i understand this may be wrong and i'm sorry for the hurt that i have caused". may be wrong. hard to imagine what leibby's family is going through right now. new york assemblyman dov hikind joins me now. you've spoke ton members of the family. it's a dumb question. obviously you can't describe how they're doing. >> yeah. the family, grandparents stunned beyond belief in the kind of pain that i don't wish on anybody.

to lose your 8-year-old, millions of children go to camp every single morning, day camp, and they come home and they're fine. this 7, 8-year-old, he went to camp and never returned. there is such shock, disbelief. if you walk through the community, people are numb. people just cannot believe what happened. and the reaction not just in brooklyn, new york but all over the country. it's not a brooklyn story. it's about every child in every place. and it's about protecting your children. because this child walked the streets of one of the safest communities anywhere, a crime rate doesn't exist. >> and tightly-knit religious community. when i first heard of this i thought maybe this is from somebody outside the community. but to know that this is somebody who was known in the community. >> yeah. that was the additional shock. god forbid something like this happens, who did it. you sort of have all kinds of expectations. it must have been somebody from there, from there. no, it ends up being somebody who actually prays at a local synagogue.

for two days thousands of people came into the community from all over, jew and non-jew. it was an amazing, amazing thing to watch. hoping against hope to find this child day and night volunteerses worked. the police department used every resource available to find this 8-year-old. and that was a remarkable story. but it ended so horribly, so terribly. >> and the parents of this child, thankfully they don't watch television so they haven't been told any details. they don't know what happened. >> the grandparents actually told me today the mother does not know any of the details. when i saw her prior to the child being found dead, she was a mess. she was out of control. this was prior. afterwards, i can't even imagine what a parent, what a grandparent goes through.

>> and they did everything right in terms of -- i mean, she had walked the route with him multiple times, they had discussed whether or not he should walk home alone. this was a big step in his life. >> absolutely. he wanted this little bit of freedom. he was only 8, almost 9. he wanted to be able to walk a little bit. and what parent does not want to give their child a little bit of freedom? and this is a safe community. this was 5:00. people were outside. >> and so random that he just happened to stumble upon this man and at least we think it's random at this point and asked the man for help. >> there are still a lot of questions. but the bottom line is, that this 35-year-old man took this child, this 8-year-old, and while the police have not identified whether it was meant for sexual abuse, the question is, 35-year-old man, 8-year-old child? what was he going to do with him? >> >> and people in the community now are coming forward and saying, well, you know, i had suspicions about this man. and he tried to get my little

boy in a car once. or he gave a lift to my child. and when you hear that, i mean, it's just a reminder to all of us that you know what? if you suspect something, say something to somebody. >> you know, in our community an amazing community, wonderful community, people have not yet gotten to the point of understanding there's nothing to be ashamed of when you have people in the community who are abusers, sexual abusers of children, pedophiles. people need to do -- they need to act. and maybe this will be the wake-up call for people. and also the message for everybody in terms of your own children. how do you protect your children? what happened here can happen anywhere in america, anywhere in the world. you don't want to be overly protective. you don't want to scare your children. but you need to do more to protect your children. that's the message here. that's the lesson here. you need to act. when people look like you, children trust people that look like their father.

in our case, if you're hassidic with a beard and so on, that's not the case. just because someone looks like you, hey, that person looks okay. that doesn't mean they are okay. >> i'm glad the family is a strong family and has a lot of community support. and please give them our best in this difficult time. >> thank you, anderson. >> thank you. earlier i talked about leibby's killing with dr. drew pinsky host of hln's "dr. drew" and sunny hostin a former federal prosecutor. >> dr. drew, you read this guy's -- the alleged confession from this guy which we got through wnbc. and the last line of it really struck me. he's described smothering this child to death, basically cutting the child up, moving around the pieces of the child, trying to dispose of the pieces of the child. the last line he says "i understand this may be wrong and i'm sorry for the hurt i have caused". he understands that it may be wrong? i mean, what do you make of this?

>> well, i make that this is somebody who -- the depraved quality that he has -- in which he has behaved. it's chilling to hear somebody say that. it makes me think that he might be one of these people that truly doesn't understand right and wrong. severe social yopity to the level of sigh cop think. if that's the case further evidence will come out about this guy's behavior. it may be hidden but we'll find more evidence of this nonsense. >> from this alleged confession "when i got home he was still there so i made him a tuna sandwich. i was still in a panic and afraid to bring him home. that is when approximately i went for a towel to smother him in the side room. he fought back a little until eventually he stopped breathing". sunny, do you see any red flags at this point? >> obviously there's a mental health issue. when he was arraigned on first degree murder and kidnapping

that came up. and so there's going to be that mental evaluation. >> and we heard from people in the neighborhood, we're hearing now from people in the neighborhood who said they had suspicions about this guy long before. this they didn't want their kids around him. he would give rides to kids in his beat up car. he would be outside playgrounds. >> those are the red flags. those are the red flags. if you have adults that want to be around children, adults that don't have children of their own, or even adults that have children of their own that play all the time with children, want to give children rides, that is certainly a red flag. that fits within the pedophile and the sociopathic profile that prosecutors look for. but in this case it seems to have come out of nowhere. he has no record. he was sort of a loner apparently, shy, a bit odd is how he's also described. and so i think one of the lessons out of this terrible tragedy is that people like this are just around us. and i think it lulled everyone into this false sense of security because he looked like everyone else. >> especially in a tightly-knit religious community. drew, you think more will come out about patterns of this guy? >> i do.

i do. but i agree with what sunny is saying. i would add to that, please trust your instincts. you don't owe anybody anything other than your children to protect your children. if you're uncomfortable around somebody, you owe them nothing. get away from them. these parents had good instincts. they need to listen to them. that's why more kids haven't been harmed in this case. i do believe the quality with which he is describing this act as being maybe wrong or i think it was wrong or people might see it as wrong suggests how disconnected he is from the experience and from what he's done. somebody who's that far gone up the sociopathic scale probably has done other things. >> this guy is 35 years old. so there's got to be more out there. it's not like this suddenly emerged at this age. >> i think that's right. and i think what's also interesting to note is that he was married, he lived in memphis, tennessee. and his wife, ex-wife claims that she was sort of blind-sided by this. the other discussion that i think that's come out of this is many parents are thinking, can i let my 8-year-old boy walk by

himself from camp? and i have an 8-year-old son. and it is a question that i think parents ask themselves all the time. when can you give your child that leeway? when can you give them that freedom? but in today's society, unfortunately i'm not trying to blame the parents here, in today's world i don't think it's something that you can do. >> it's just stunning. >> you can't be vigilant enough. you cannot be vigilant enough. >> dr. drew, thank you, sunny hostin thanks. >> so sad those videos of the little boy just walking down the street. still ahead, late developments in the legal fight over the military's don't ask don't tell policy and tonight's ridiculist. [ cat meows ] ♪ [ whistles ] ♪ [ cat meows ] ♪ [ ting! ] [ male announcer ] travelers can help you protect the things you care about and save money with multi-policy discounts. are you getting the coverage you need

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coming up the creator of the hit tv show "glee" is added to our ridiculist tonight. first isha sesay. >> reporter: the justice department has asked the california federal appeals court to reconsider its order last week temporarily blocking the u.s. military from enforcing its ban on gays and lesbians serving in the military. the obama administration is moving ahead with plans to repeal its don't ask don't tell policy but objects to the court forcing them to officially end it right now. at issue is whether the policy can remain in effect even in name only while the legal fight over its constitutionality continues in the federal courts. in dallas, texas, a stampede caught on tape as hundreds of people got online for a limited number of section 8 housing vouchers. at least eight people were hurt this morning.

and the annual list of american cities with the most millionaires is out with new york getting top spot followed by l.a. and chicago. now, interestingly enough, in each of those cities the number of millionaires rose by at least 7%, even with high unemployment and a declining housing market. something for you to think about as you fall asleep. >> it is something. i'm actually rewriting something in the ridiculist. i'm sorry. i was distracted. >> so you weren't even paying attention to me. okay. fine. fine fine fine. >> this is like that presenter on the bbc that we aired last night who was like, who did i go to that movie with? it was you. >> but i'm going to be here with you each and every night. so just remember that. >> it was just a one-line thing. i had to rewrite something. >> okay. mm-hmm. good bye. >> high school principals entrepreneurs. are becoming more and more antisocial, so i was really aggressive with my parents

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the opening bell at the new york stock exchange and started her own business. mama nia's vehicle an bakery. her cookies were served as at an event at the waldorf as store yeah hotel in new york. >> you started a vegan cookie business in high school? >> yes. yes. the summer after tenth grade. my parents became vegan when my mom contracted breast cancer 11 years ago. >> as a 15-year-old, what did you know about business? >> just what i had learned in that month of nifty. >> nifty stands for network for teaching newership. it's a non-profit inspiring low income students to stay in school by tapping into their interests to create businesses. using a hands-on approach nifty teaches how reading, writing and math skills from the classroom translate into the real world. at nifty's national competition last fall, her bakery won the $10,000 grand prize. >> when you go off yale in a

couple months, you have the opportunity to continue this business that you began here in new york. will you? >> i plan to. this summer is going to be very intense for me since i'm going to be trying to get it to a point where people can bake and it can be run without me coming back every weekend to bake. >> reporter: businessman turned teacher steve mariotti founded nifty in -- he started it after he was mugged in new york city. >> there's no kid under 18 that's a bad person. you get into a peer group, you start thinking that way to get resources is to use physical violence or threaten people. so if you can start teaching young people in poverty about basic income statements, record keeping, how to do a sales call, how to save your money, how to invest it, you'll lower the business failure rates. and i think that will have a dramatic impact on ending poverty. >> this is my logo. and this is my name of the

company. >> reporter: barbara campbell is long term proof of nifty's success. she grew up in a rough new york neighborhood and started designing handbags at 16. >> when you say rough, what was going on? >> a lot of people were dropping out of high school. there was a lot of teen pregnancy. but i figured i didn't want to -- i wanted to graduate. and i wanted to do good for myself. so being part of the nifty program, that really introduced me to entrepreneurship. and that it was possible that i can work for myself. >> reporter: today her business includes, belts, jewelry and purses but the slow economy has been tough on her. >> it affected the stores that i was in. it affected my vendors. but once again, being part of this great program, nifty, teaching me how to write a business plan, i was able to go back and really strategize a new approach. >> why do you think the nifty program is working? >> >> reporter: many children say they want to be entrepreneurs. what nifty does it puts the kids in a position to open a business now. we met a young lady who's going to yale because she took an