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tv   CNN Newsroom  CNN  June 16, 2012 12:00pm-1:00pm PDT

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operations has residents divided about the safety of the plant. last year's accident contaminated food with radiation. at 121 feet in the air, walking 1800 feet across a tightrope in the dark, by the way, a history is made as nick wallenda crosses over niagara falls. people anxiously watched him walk on that tightrope with wind and mist blowing all around him and it took him 45 minutes to finish that. all right, let's get to the intensifying debate over the new u.s. immigration policy. the president announced yesterday the u.s. will stop deporting young, law-abiding illegal immigrants who come to the u.s. as children and have lived here for at least five years. he says it's the right thing to do and he explained why. >> i believe that it's the right thing to do because i've been
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with groups of young people who work so hard and speak with so much heart about what's best in america even though i knew some of them must have lived under the fear of deportation. mitt romney was critical of the changes. he spoke while campaigning in new hampshire. >> believe the status of young people who come here through no fault of their own is an important matter to be considered and it should be solved on a long-term basis so they know what their future would be in this country. i think the action of the president he took today makes it more difficult to reach that long-term solution because an executive order is a short-term matter that can be reversed by subsequent presidents. what should the reaction be from u.s. congress? no big surprise here, it comes down along party lines. athena jones breaks that down for us. >> reporter: senator minority leader mitch mcconnell refused to answer shouted questions
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about the new immigration policy, but the reaction from other congressional republicans was strong. chairman of the house judiciary committee calls the move an amnesty that would encourage fraud and illegal activity. >> i think the american people are getting tired of this president picking and choosing what laws to enforce. that's not the democratic way. maybe you can do that in a dictatorship and maybe you can do that in another country, but this is a president that swore to uphold the constitution of the united states. >> reporter: some members took twitter. senator lindhry graham tweeted president obama avoids the hard work of fixing an immigration system which is broken and fractured along numerous fronts. the president is bypassing congress which has failed to pass the dream act legislation which would give undocumented immigrants brought by their parents a path to citizenship if they meet certain criteria. senator dick durbin are
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applauding the administration's move. >> i believe that this is an important step forward. >> athena jones now joining us live from washington. so lots of friction right there on the grounds of the u.s. congress, but what kind of leverage does u.s. congress have when an executive order has been imposed? >> well, that's really the question here. this is executive action on the part of the president. it's not some law that's gone through congress and we asked representatives lamar smith about that when we spoke with him yesterday. he said that when they could do is they could try to cut off the money that's being used to implement this policy they could also introduce a legislation disagreeing with the president on this and they could file a lawsuit to take president obama to court for not upholding the law, but the congressman also acknowledged that he thinks this will play out ultimately in the court of public opinion, fred. >> athena jones, thanks so much
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in washington. >> thanks. so when the president made the announcement that he also you know clarified who would qualify a young, law-arc biding illegal immigrants who came to the u.s. as children and lived here for at least five years who would get a reprieve. those are some of the criteria, jessica colato fits the criteria and she came to the u.s. from mexico while she was just 11. she almost wassic canned out of the country for being ticketed and driving with an expired mexican passport. we got her reaction. >> what was that news like yesterday? where were you? how did you receive it? how do you digest it all? >> i was actually in school for an event with my sorority when the news broke out and i was very excited. i'm very thrilled, but at the
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same time i knew it was only a short-term solution and it doesn't really solve the problem. i think it's more of a band-aid, if you will. >> so what does that mean, exactly? you're saying this is a short-term fix. it really is a band-aid approach. instead you would have preferred to hear what? >> the pass of the dream act and/or an immigration reform because that's essentially what this country needs. >> and the dream act would offer a path to citizenship and this immigration policy is just shy of that, not offering the path to citizenship so homeland security secretary janet napolitano repeated the white house decision saying this is neither amnesty nor immunity for illegal immigrants. >> turns to egypt where polls just closed for the day and a crucial presidential election. millions of egyptian voters braved lines to cast a ballot
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for the new candidate. polls reopen again tomorrow. let's bring in ivan watson. he has been monitoring the voting all day. polls closing until tomorrow. is it likely that the turnout would be larger or about the same tomorrow? >> reporter: some of that may depend on the heat, but what's striking is that everybody you talk to, fredericka, says that their vote could help determine the very future of this country and it underscores the big choice we've got, on the one hand a candidate who is a former air force general whose critics accuse of being a symbol of the dictatorship that was overthrown last year and on the other hand you've got a candidate from the muslim brotherhood and his critics claim or accuse him of wanting to take the country into a theocracy, something like iran or perhaps afghanistan as one woman told me. they see this sharp choice in front of them.
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they are also big political stakes and confusion because just two days ago, the court ruled that the parliament in this country should be dissolved because there are some previous election irregularities and it's only been in office for a couple of months. we talked to an election observer and u.s. congressman who said, yea, he would have liked for the political atmosphere to be more calm through this election. take a listen. >> i'm not happy with everything that has taken place and i don't think anyone is, but let's look at the advances. for the first time in 7,000 years the people of egypt are this weekend going to elect a president and no one knows for sure who the winner is going to be. >> we've gotten reports, fredericka of some of the opposition activists of being arrested by police, another disturbing sign with one more day of voting. >> ivan watson, thanks so much in cairo. appreciate that.
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now to another crucial election. this time in greece and people are ready to go to the polls tomorrow to vote for a new government and that created political chaos and everyone's watching to see if tomorrow's vote in greece will result in that country withdrawing from the euro zone and that could deepen the debt crisis and shock world financial market, potentially. now to the middle east. the heir to the saudi throne has died. saudi officials say crown prince nayef bin abdul aziz had health problems and died while seeking medical kir in switzerland. the prince was known as a hard line conservative. >> reporter: after 9/11 and in the mid-2000s, 2003 and 2004 he was leading the saudis' charge against al qaeda. al qaeda was turning against the crown and they were seen as a serious threat, blowing up
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apartment complexes where foreign workers were living, taking control of oil facilities and the threat of dealing with that threat was taken on by prince nayef at that time. >> the body of the crown prince will be flown to sawed rabe wra and buried tomorrow. his unexpected death reopens the question of succession in saudi arabia. king abdullah is 88 years old and has outlived two successors. after an explosive week of testimony in the sex abuse trial of former penn state coach jerry sandusky, some wonder how the defense can win the jury over? well, more and more people are bundling their home and auto insurance with progressive. sure seems and why that way. wouldn't you? you can save on both your home and auto policies.
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visit phoenix.edu to find the program that's right for you. enroll now. >> this week the alleged victims in the trial of former penn state coach jerry sandusky gave disturbing, heart wrenching details of their sexual abuse claims. one accuser cried during his testimony and another described that sandusky called himself the tickle monster. as we expect the prosecution to wrap up its case they are prepared to defend the former football coach. jason carroll has more on how the case played out this week. >> reporter: the week began with prosecutors telling the jury
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jerry sandusky is a serial predator, sexually abused children, not over days, weeks or months, but years. an 18-year-old identified in court papers as victim number 1 sobbed as he testified the former penn state assistant football coach began sexually assaulting him when he was just 10 years old. after rubbing and cracking my back and the blowing of the stomach he put his mouth on my privates. sandusky would expect the oral sex to be reciprocated and he sat there and looked at me and said it's your turn. prosecutors say sandusky followed a pattern using second mile to target young boys, many of them fatherless or troubled, giving them gifts, taking them to games and then sexually assaulting them. >> there he was with this relationship with these boy after boy after boy which, by any conventional evaluation of any normal adult would say this
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is just so terribly odd and wrong. >> reporter: a key witness for the prosecution, mike mcqueary testified when he was a grad assistant back in 2001 he saw jerry sandusky sexually abusing a boy, he heard smacking sounds, skin on skin, and i looked directly in the shower and standing right against the back of the right boy and the coach's arms around the bi's midsection, just as close as i think you could be. pointing out mcqueary had said the alleged assault happened in 2002. a year later than he now says it occurred. the week ended it as it be gone with the jury hearing graphic and disturbing testimony from an 18-year-old identified as victim number 9. he says sandusky repeatedly forced him to perform oral sex and he says sandusky sodomized him. he got aggressive and forced me
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into it. i just went with it. there was no fighting against it. his screams of help went unanswered. >> no one could sit in the courtroom and not be convinced that they're telling the truth. that is powerful testimony about deeply personal issues and none of them wanted to be here today. the jury will see that. >> reporter: throughout the entire proceeding sandusky stared at his accusers as he testified. the question now, will he testify in his own defense? the commonwealth is expected to rest its case on monday and then the defense will have its turn. the defense is likely to highlight how many of these accusers have hired civil attorneys hoping to convince jurors these young men are falsely accusing sandusky in order to sue penn state later. fredericka? >> all right. thanks so much, jason. >> let's get you caught up on news making international headlines. first alberta, canada, where a massive man hunt is under way
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for this man. he's an armored truck guard who police believe attacked his fellow armored guards and police believe he is armed and dangerous. now to japan where the government is restarting two of its nuclear reactors at the troubled fukushima plant. the reactors are the first to be put back online since being shut down during last year's earthquake and tsunami crisis. >> ignition. lifting off. >> and with that, china blasts its first woman astronaut into space as she is a 33-year-old air force pilot who will stay in space for the next 20 days. china sent its first man into space in 2003. a texas town is standing behind a young dad who claims the man he beat to death was sexually assaulting his 5-year-old daughter. copd makes it hard to breathe,
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in texas, authorities are trying to piece together the story of a beating death.
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the town is standing behind the man who says the man he killed was molesting his 5-year-old daughter. >> reporter: here's what we're told happened at the family farm. the father and the grandfather of this little girl were apparently working with the horses setting up for a barbecue. the girl was apparently, according to the sheriff, in the past our area behind the barn at the chicken coop when suddenly the father heard her screaming so he raced toward the area where he heard her screaming from and found according to the sheriff, this is what the father told him, found this man, this 47-year-old man attempting to rape his 5-year-old daughter, so what he did according to the sheriff was pull this guy off his daughter and punched him repeatedly in the face and the head and ended up killing him. the question of course, is whether or not the father will be charged. the sheriff's office is investigating along with the texas rangers and the case will have to go to the district attorney and possible toe the grand jury next month so it might be some time before we know and the feeling among
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neighbors in this community is that justice was served that this father did no wrong, that he wassa, tempting to protect his daughter in this case. the sheriff said he showed remorse and this man did not intend to kill this 47-year-old man and neighbors said if it was their daughter they would have the same thing and possibly made this man suffer is what one man told me. he grew up in this community. he has a high school diploma, he's a single father and doesn't have any history of violence and walks around here referring to neighbors as sir, he's respectful. so it's just a question now of what will happen to this man who apparently committed murder as he was trying to protect his young daughter? randi kaye, cnn, texas. let's talk about one of the number one issues in america, the economy, and the gridlock, the nagging unemployment and the slow recovery. what can be done to get the u.s.
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on the right track? ali velshi investigates in this week's fortune brainstorm. >> the u.s. economy is paralyzed by indecision. economic growth measured by gdp remains stubbornly low. the economy is adding jobs and it has for 20 months and consumer confidence has declined for three months in a row and that is despite record government spending. the nonpartisan congressional budget office, projects that the u.s. will end the fiscal year with a $1.33 trillion deficit, that's the shortfall between what we take in and what we spend and that's just for one year. david newton is the professor for entrepreneurial and he is the editor of a new book called "crisis of confidence" which by the way, the foreword was written by our good friend, stephen moore. david, you lay out two scenarios for the u.s. economy going forward. the first scenario, we change nothing. the economy grows at 2.3% and in
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ten years the gdp stands at just over $19 trillion. the government takes 15% of that in taxes. the economy grows at 4% and that pushes gdp higher to their 23 trillion. it gives the government 3.9 trillion of tax revenue at 17%. we all prefer the second scenario, how do we get there? we have to be serious about taking on these entitlements and recognizing that they are not sustainable. in their current form they're already in deficit and they'll remain in deficit going forward and ultimately the spending that creates these annual deficits and adds more debt each year will have to be paid in terms of the interest on that and the short term, low interest rates that we're looking at right now are artificial and they can't stay like that forever. >> thanks, david. >> i'm ali velshi with this week's brainstorm. the greeks are going to the polls and it will not only
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>> here's a quick look at major stories we're following today. in saudi arabia, the heir to the saudi throne has died. saudi state tv says crown prince nayef bib abdul aziz died in geneva switzerland. he was there for medical tests. he was known as a hard line conservative who led several crackdowns on al qaeda militants. in southern mexico, carlotta has weakened to a tropical depression. all warnings and watches are discontinued and the storm did leave a march as a hurricane. two children were killed. carlotta continues to dump eight inches of rain through monday. firefighters in larimer county, colorado are hoping for rain so they can get a handle on the high park wildfire. it has burned more than 55,000 acres and forced thousands of
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people from their homes. right now the fire is only 20% contained and the officials say the newest danger are scared, hungry bears so firefighters are trying to keep their distance. tiger woods could be on the verge of a huge comeback. it's been four years since he won his last major title, but now he's tied for the lead at the u.s. open in san francisco. here's cnn's patrick snell. >> reporter: after three 36 holes, three-time champion tiger woods is in the share of the lead at 1 under par, this despite shooting a second round on friday that were three consecutive bogeys, he does have companies in the shape of former winners jim furyk and david toms. you have to say at this point it's tiger's tournament to lose. >> being patient is certainly something that, you know, you have to do with major champion ships and i've done a pretty good job of that over the years. i won my fair share and i understand how to do it. >> forra i short while the 112th
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u.s. open featured a 17-year-old american champion in the lead. it got to 2 under par at one point before falling back to 3 over, but not before it was trending out of control worldwide. i was pretty excited about it, but then again, would i have another 40 holes at least to be playing in the tournament? you have a long way to go and you can't get too wrapped up where you are, but you have to keep focussed. >> another amateur player has a tournament to remember, but unfortunately for zhang, he is now out of the tournament after being cut. he's in good company, the defending champion, rory mcilroy is leaving the tournament far earlier than he waould have wanted. >> keep us posted, patrick. it is a summer road trip season and before you hit the road with the kids, we have summer gadgets to reduce the
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"are we there yet?" . i'm one of six children that my mother raised by herself, and so college was a dream when i was a kid. i didn't know how i was gonna to do it, but i knew i was gonna get that opportunity one day, and that's what happened with university of phoenix. nothing can stop me now. i feel like the sky's the limit with what i can do and what i can accomplish. my name is naphtali bryant and i am a phoenix. visit phoenix.edu to find the program that's right for you. enroll now. there are a lot of warning lights and sounds vying for your attention.
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>> it's that time of year again and time to pack up the car and hit the rod for the summer vacation and we have gadgets to make that ride easier and a bit more fun, fewer headaches, tech expert mark salesman is on the road joining us via skype from toronto. you can do anything. good to see you. >> let's talk about this jabra freeway, we're talking about hands-free safety while you're driving on the road. >> before we get to the fun ways to keep the kids entertained, let's talk safety first. this is the jabra freeway bluetooth speaker phone, so this
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mounts on your visor and of course, lets you make hands-free calls and it has three speakers built in and three microphones to cut down on ambient noise so the person you're speaking to can hear you. you can use your voice to ask for text messages and send e-mails and post to twitter or facebook, if you like and the quality is very clear and you turn it on and it walks you through the set up. >> power on. welcome. you are now ready. >> you get the idea. it can pair two different devices to this jabra freeway and it sells for about $130. >> cool stuff. satellite radio, there's something new about it? >> this is the latest player, the lynx portable radio and the most powerful satellite radio today and buy a vehicle mounting kit and keep it in the car, and what i like is it's also portable and it's battery powered and use it as an mean player as you walk around and
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use it at home because it works over wi-fi, stream your satellite subscription to your home or office. you can also use it like a dvr where you can store up to 200 hours of programming on the device to the built-in memory and play it back whenever you like. you can pause live radio, skip forward and back, and it also has a feature called tune start so whenever you skip stations and land on a song that you like and it's toward the end, and you'll press a button and it will rewind it to the beginning automatically. >> you won't want to get to your destination. you'll want to stay in the car. >> tru. >> so you have kids and they're in the backseat and they're asking are we there yet? how much longer? are we there yet? you have something to stop the madness. >> this is for those who own an ipad 2 or the new ipad. this is a headrest mount for the touch screen tanlet. it mounts to any of the
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headrests in any of the cars on the back of the pass employer or driver's seat and they can use the finger to play games and it's secured and mounted in this durable shell and it can tilt up and down and there's technology in the mount. it's got built-in speakers so it will make it louder for their games and movies and tv shows. you can wirelessly sync a couple of i.r. headphones or infrared headphones and it has a usb connection and you have a thumb drive, and you can snap it into the dock and show up on your ipad right away. this sells for $150 and called the scosche, and they're through the roof and they're amazing. then let's talk about a portable hard drive, unlike what you just have with the flash drive, but now what do you have? >> sure, so our last road trip gadget recommendation is from
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seagate called the goflex satellite portable wireless drive. so this looks like any external hard drive. you drag and drop videos onto it and then what you can do is you press a button when you're on in the car and it will wirelessly send video to up to three different devices at the same time. you have three kids and one's on an ipod touch and one on the ipad and this creates its own wi-fi hot spot. it stores about 300 movies and it's a $200 drive and from seagate. i love this little guy. >> all of that stuff is just amazing. i can't wait to hit the road just to have an excuse to get all of those gadgets. mark saltzman, keep your eyes on the road. >> for more ideas go to cnn.com/fact check or follow him on twitter and linkedin.
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and i am a phoenix. visit phoenix.edu to find the program that's right for you. enroll now. mcallen, texas. in here, heavy rental equipment in the middle of nowhere, is always headed somewhere. to give it a sense of direction, at&t created a mobile asset solution to protect and track everything. so every piece of equipment knows where it is, how it's doing or where it goes next. ♪ this is the bell on the cat. [ male announcer ] it's a network of possibilities -- helping you do what you do... even better. ♪
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>> voters go back to the polls in greece tomorrow and there's a lot at stake. the country has been in chaos since voters were unable to elect a parliamentary majority in the may election and now there's fear that the political turmoil can result in greece ending its use of the euro as currency. john defterios is in athens. john, a lot at stake. how are people feeling leading into this vote tomorrow? >> reporter: well, i would say
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they're quite nervous right now, fredericka. both candidates are suggesting they'd like to stay in the euro. the problem is that investors don't quite believe it. we have two candidates that share the common belief, at least that's the way they're camp calling and miles apart in terms of their philosophies. samaras is the center right candidate says he will continue to austerity so greece can continue to receive the bailout money from brussels and the european union so they can stay in the euro. although they want to do some amendments. mr. cipra is 37 years old and he wanted to tear up the memo of bankruptcies and says the measures put forward by europe are too off the ear and greece is suffering a great deal. it will be seen if greece will exit the euro. you have clarity after the second round of the election that takes place tomorrow. we'll know a lot more monday morning and that's when the
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international markets will respond accordingly and they're looking for one single party and if not, they'll have to go back to negotiations to see if they can form a negotiation. >> what do voters seem to be leaning towards? >> well, that's a huge question mark. i have to be candid and i spoke to different ministers and a lot of people on the streets and it's a cointoss right now and there are two or three percentage points in the various points and why should we care as americans? this is a very large, european market that greece belongs to, 330 million consumers share the euro right now in 17 countries and the biggest fear out of this election is that greece has to exit the euro, it breaks the dam in southern europe, it spreads to italy and spreads to portugal and spreads to spain and then you could have the whole eurozone fall apart. the u.s. exports, 25% of the
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total goods to europe right now. so that's the biggest concern. the other concern is that it spreads like wildfire into the financial markets and it could have a big sell-off as a result if you can't get leadership in greece. >> john defterios, keep us posted there from athens. thank you so much. >> it's not every day when someone decides to simply walk across the niagara falls on a tightrope, but nik wallenda dared to show the world that he could at 121 feet in the air walking 1800 feet of tightrope in the dark. he made history as he crossed over niagara falls and he told abc who motivated him to finish. >> a lot of praying, that's for sure and that helps a lot and it's all about the concentration and the focus and it all goes back to the training and in the middle of the wire i started thinking of my great-grandfather and the walks he did and he was successful on and paying tribute
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to my ancestors and my hero, carl wallenda. >> with the wind around him he still finished in just 25 minutes. that's some concentration. >> all right. after losing his daughter to a drunk driver a father in montana set out on a mission to protect his children in his community from the same fate. ahead of this father's day we celebrate leo mccarthy, the courageous dad who refused to let his daughter become just another statistic. >> october 27, 2007, was a beautiful, autumn day. mariah was with her two friends. i didn't know the last time i kissed her it would be my last time. later that night they were walking down this path when a drunk driver swerved off the road and hit them. mariah landed here. she died that night.
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only a block away from my house. mariah was only 14 and i'm thinking how did this happen? it is so preventable. my name is leo mccarthy. i give kids tools to stay away from drinking. our state has been notoriously top five in drinking and driving fatalities in the country. the drinking culture is a cyclical disease that wea, lou to continue. >> be the first generation of kids to not drink. in the eulogy, i said if you stick with me for four years, don't use alcohol and don't use illicit drugs and i'll be there with a bunch of other people to give you money to go to a post secondary school. >> i promise not to drink until i am 21. >> i promise not to get into a car with someone who has been drinking. >> i promise to give back to my community. >> i think mariah's challenge is something that makes people think a little bit more to say
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we can be better. >> mariah's forever gone, i can't get her back, but i can help other parents keep their kids safe. if we save one child, we save a generation. >> remember, all of our heroes come from your nominations. so go to cnn heroes.com and tell us about your hero. she is the youngest american gymnast to win a gold medal at the olympics, but behind the scenes her life was a struggle and now she's telling her story. do you see it ? there it is ! there it is ! where ? where ? it's getting away ! where is it ? it's gone. we'll find it.
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all right. a u.s. air force spacecraft in orbit for more than a year will come back to earth today. the robotic x-37b is set to land
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at van derberg air force base in california. officials are keeping a close eye on the weather and hoping it will cooperate. this is an artist conception of what the ship may look like. only a few people really be. as for its mission officials aren't saying much, but hopefully we'll get answers once it does return. and an old computer worth its weight in gold then some. one of the few original working apple one computers has sold for more than $274,000. sotheby's auction house says it was only expected to get half that price. you're not looking at it by the way. if you had bought one of the computers when they were on sale back in 1976 it would have cost you just $666. all right. the youngest member of the 1996 u.s. olympic gymnastics team, dominique mosiano, is telling her story in her new book called "off balance" and she talks about the alleged abuse she
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suffered during training. cnn's chief medical correspondent dr. sanjay gupta has this week's human factor. >> reporter: olympic gymnast dom nique moceanu hasn't lost the focus and smile she is known for as a member of the magnificent seven in atlanta but she has hidden a lot of pain. while she loved the sport she says her coaches marte and bella caroli made her life miserable severely restricting eating, forcing her to hide sports-related injuryies and constantly chipping at her self esteem. >> name calling like piggy and fat. they hit me in a lot of personal and emotional places. they used my father as a medium of abuse. >> reporter: she says the coaches would call her father to complain about her performance in practice and he'd punish her by hitting her. >> for so long i was silenced by those very people who never wanted me to say anything. >> reporter: they declined to comment on her accusations but tell cnn, quote, we have known
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dominik since she was a young gymnast and wish her only the best of success as she goes through life. at 17 she went to court to be granted legal independence from her romanian parents to reclaim her money and choose her own coach. moceanu's younger sister christina says she witnessed the abuse she suffered at the hands of her father but says dom nique reconciled with him before he died from cancer. >> i learned to take those experiences that were difficult and that in my life and the adversity that i had overcome to use it for a positive change. >> reporter: she retired pr gymnastics in 2006 and soon afterward while pregnant with her first child received a letter from another sister, one she never knew she had, a sister born with no legs and given up for adoption. >> i got the biggest bombshell of my life. and it changed everything. my life will forever be divided now into before knowing about jen and after knowing about jen.
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>> reporter: today moceanu is happily married and wants to help other young gymnasts fall in love with the sport she loves so much. she says her two children may even be gymnasts in the future. dr. sanjay gupta, cnn, reporting. in politics in america's hispanic communities it isn't all about immigration but also baked goods. you'll see what i mean. if you have to go out today just a reminder. continue to watch cnn from your mobile phone. you can also watch cnn live from your desk top, lap top. just go to cnn.com/tv. almost tastes like one of jack's cereals. fiber one. uh, forgot jack's cereal. [ jack ] what's for breakfast? um... try the number one! [ jack ] yeah, this is pretty good. [ male announcer ] half a day's worth of fiber. fiber one.
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in new york city a police recruit claims he got kicked out of the academy because of the length of his beard and it's got our legal panel talking. >> i think the police department will have a very difficult time if he can establish it. i think the more complicated issue is what if he is walking around like rip van winkle? then what happens? >> you can watch the rest of our discussion with our legal guys at 4:00 eastern time.
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all right. we've been talking a lot about the issue of immigration. there's another big issue affecting the hispanic community -- the economy. one bakery in los angeles is seen as something of a barometer for the community. >> reporter: huntington park, well worn shoes walk through a working class mexican neighborhood. >> for us some of the adjustments were not only in terms of the cost but trying to learn what people's situation was. >> reporter: the situation dire. unemployment estimates here up to 20% in 2009. this is a full service mexican bakery. all baked goods are made on the premises. it was started by two stanford business school graduates from monterey, mexico. as the economy tanked they saw customers disappear. the owners knew they had to cut production and workers' hours but they were open with employees. >> you see what's going on on
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the street and we have to make some adjustments. we made a conscious decision not to not lay anyone off. it is better to have someone working 25 hours than not working at all. >> reporter: named after the monarch butterfly they face rising costs, wholesale flour prices tripling but the bakery didn't skimp on favorites or raise prices. customer favorites are still a dollar or so lower. la monarcha also got creative with poor families who could no longer afford cakes. >> a couple families to buy one bigger cake and we'd decorate no charge for both families. on the same cake. >> reporter: the friendly bakers survived and thrived. >> so friendly. that's why we come out. >> reporter: their business was built on childhood memories of great monetary bakeries and cooked to perfection at stanford. >> here you are graduating and your classmates go off to silicon valley and they say what? happy baking?
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>> they bake micro chips and we bake cookies. it's baking in the end. i think being at stanford gives you like you said you combine what you've learned, it gives you a framework and it gives you sort of a discipline of understanding how business works. >> reporter: fast forward to 2012. la monarcha has three stores, now, plans to open more, the fitting symbol of spring in renewal is spreading throughout southern california. cnn, los angeles. let's begin in syria where the united nations is suspending its peace mission there because of increasing violence. that decision sends a strong message that prospects for peace are failing. the u.n. chief in syria says the country poses too much risk to observers. >> operations will