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tv   CNN Newsroom  CNN  July 14, 2012 7:00pm-8:00pm PDT

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remember tim robbins directed kevin in that film. he's a director too, so he needs to get cracking on that. >> it's been a real pleasure. "the closer" final of the series will be on monday night. thanks for watching. it's been a pleasure. >> thank you so much. hey, everyone, i'm poppy harlow. let's get you up to speed on some of the day's headlines. this man one of two americans held tonight in egypt. the pastor and one woman from his church group were reportedly taken by -- says they'll exchge them for relatives that are jailed in egypt. and visa, mastercard and some big banks are set to settle a huge anti-trust lawsuit. it has to do with so-alled swipe
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fees charged to retailers when they accept your credit card payments. but that bill will allow retailers to pass on those additional fees to you, the customer if you use credit standards. meantime, sylvester stallone's son sage has been found dead in his home. the part-time actor was in a couple of movies with his father, who's reportedly devastated by his son's death. foul play is not suspected, but an autopsy will be performed. connor boss made history today at the -- voss as a hereditary the disease that has caused her vision to get progressively worse over the years. and penn state plans to honor a contract with joe paterno.
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that new deal gave the late coach a package worth over $5 million. a devastating report released last week has damaged paterno's legacy. but the school is said to be leaning towards keeping that statue of paterno outside of penn state's stadium. as many as 180,000 capped crusa crusad crusaders, comic-con in san diego. those are your top stories and now what we're working on tonight. going broke from wall street to main street. now entire cities. the paychecks for firefighters and police in one town now minimum wage.
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>> $7.25 an hour. >> is your town next? the black vote helped him win the white house. but is the president's lock on those votes -- >> you vote for people that you can relate to. >> slipping? sex, drugs and olympic gold? what goes on in the village, stays in the village until now. and swimming with sharks. idle chatter. >> what's exciting? and vacation or die or both? on cnn saturday night. you know this well, the great recession hit wall street and now main street and now landing at the steps of city hall, public safety, your safety, my safety may take the hit. so are the nation's financial problems especially cuts in fire and police protection, is it
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making all of us less safe? a good place to look for answers is in scranton, pennsylvania when police and firefighters recently saw their salaries, get this, cut to minimum wage. earlier i spoke to a scranton firefighter who described what he and his colleagues are going through. >> i'm a very proud parent, i'm proud to be a firefighter, but also, you know, i'm more proud to be a parent and to be able to provide for my family. and i'm very concerned that if this maintains, i won't be able to do that. it's very stressful right now. you know, with that being said, i'm very fortunate, you know, to have a job in this economy. but i need to pay the bills. >> you know that was bob who we talked to earlier tonight, and now we're joined by ron who is a police officer in scranton and this new rule says he's getting $7.25 an hour, thank you very much for joining me tonight.
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>> thank you for having me. >> obviously this had to be a huge shock to you, right? >> a great shock, yes. >> how long have you been serving? >> 20 years for scranton. >> let's talk about big picture and what this personally means for you. what do you think this means for the citizens that rely on you? a lot of folks are wondering if they're going to cut pay that much, so that people who put their life on the line every day protecting citizens are going to make the same as if you're flipping burgers, are you doing your job in the same way? do you feel incentivized to risk your life for minimum wage? >> we and my fellow firefighters, we swore to do our job and we're proud to do our job, and we're going to continue to do the job for scranton, regardless of the financial issues that are going on right now. >> how long can you sustain this for your life, for your family
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and your retirement savings, i think you got an 80% pay cut? >> yes, 80%, we have done. >> what is your plan. >> day by day, we hope things get worked out in a timely fashion and we can go back to just worrying about our jobs instead of worrying about our finances. >> give me a sense of what this reality is like for you. the mayor of scranton says we have a $16 million deficit, we have to cut bills. but for you, how does it change your life? >> you have to watch every penny, you live within your means the whole time and then all of a sudden you take a hit like this, 80%. it was prior to our last pay that we were notified that we were getting cut down to minimum page, you couldn't even prepare
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for it. now you watch every penny, you may not be going on a vacation that you had planned. you'll be back to school shopping in a few weeks. and i don't know, we'll try and figure it out as we go along. >> do you have kids? >> i'm sorry? >> do you have children, you mentioned back to school shopping, do you have children relying on you? >> i do. i have a son, yes. >> it's very hard as a firefighter, that's what bob the firefighter was telling us earlier tonight. give us a sense of what the citizens are saying to you, the people of scranton, what are they saying to you about all of this? >> everybody that i have dealt with in the last week have been very supportive, they wish us the best and they hope it gets resolved too and everybody's been great. >> as you said, this was a huge shock to you, do you think or do you fear that this is the new reality for more cities across america? do you think you're an anomaly,
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or do you think that this could persist as the economy continues to remain in very dire straits? >> yeah, i don't know, i hope not, we saw what happened in california over the last couple of weeks and now this in scranton and i pray other people don't have to go through what we're going through because it's tough, it's scary. >> why is it scary. >> you don't know what tomorrow brings, you don't know, they cut us down to minimum wage, there was rumors before that that we were going to pay less paydays. we have no information, we don't know what's coming. >> do you have any explanation of what needs to happen to get the city's finances back in order where you may get back upper close to the pay that used to for the two decades you've been serving? >> well, you know, the council and the mayor are battling back and forth, whatever's going on
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with trying to achieve some type of loan, as the employees, we just hope that they decide to sit down and work together and try and expedite whatever they need to do. i'm not involved in any of the political stuff, i just want to go to work, work my full day and get a full day's wage and be happy with what i do and provide for my family. >> it sounds like you feel pretty powerless, ron, you serve the citizens, at the same time it's getting so tight it's hard to provide for the family? >> right. when i go to work, my mind needs to be on the job, the fire department, their minds need to be on their job, and be 100% focused on what you're doing, and this is in the back of your mind. >> we're thinking of you and all the folks that you work with there in scranton. scranton is just one of
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several cities in this financial meltdown. big question, are these cities just anomalies or is this what's next for a lot of cities? and. >> they had the wrong person and it took them a while to straighten it out. >> thousands of criminal prosecutions may be wrong. ♪ [ male announcer ] ok, so you're no marathon man. but thanks to the htc one x from at&t,
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you probably heard this week san bernardino, california declared bankruptcy. and as we discussed a few minutes ago, scranton firefighters are getting paid minimum wage. we want to bring in two of our guests, peter know venovaro. and gary lewis, who specializes in distressed assets. when you look at san bernardino, almost 12% unemployment, "the wall street journal" reporting that 70% of homeowners are under water, they owe more on their mortgage than their home is work. so you've got this confluence of factors, you've got the mismanagement of money in a number of these cities. professor novaro, you say
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bankruptcies are the tip of an iceberg for what you call failing american cities? >> poppy, yeah, 95% of the cities in america are having trouble. and bankruptcy is literally the tip. but every major city in this country, because of the economy is having pressure now on wages, on pensions, potholes, police and fire. the problem here is that you can't fix this problem locally, the only thing you can do is managing the shrinking pie. the big problem is the macroeconomy. in the last decade, the economy is only growing at a third of the rate that it has in the previous two decades. the police and firefighters can't have jobs unless you have manufacturing jobs generating good pages and having that income ripple through, so across america it's an issue.
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>> the fact is there's a strong argument that those jobs and that growth that we saw that just exploded for decades is not coming back to the united states. some of that manufacturing is coming back, but it's not going to come back in the way that it did. so then what do cities do? what can be done on a national level to help these cities? >> what can be zone on a national level is trade reform with china. what does china have to do with scranton and san bernardino, they stole our jobs, we have lost 6 million manufacturing jobs, we have got 25 million people in this country who are under employed, not earning a decent wage and the reason why is we don't make stuff anymore. we consume more than we make. and the tragedy of these cities is that they can't do anything, the only thing they can do is basically penalize people and cut their pages or cut pensions, or make to the bondholders take
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a hair cut, that's the only thing you can do, and bankruptcy is the tool to do that. >> scranton is not in bankruptcy yet, would a bankruptcy filing really allow scranton to pay police officers, firefighters more than minimum wage or is it going to obscure a bigger problem here, because it's going to raise the cost of borrowing significantly, it's going to raise the muni bonds, and it's going to affect the people there. >> but the cities shouldn't be doing the borrowing its done. the problem and the reason that we can't pay our public servants is because we're paying $8 million to $10 million a year in basically debt service costs. we need to get that under control, we need to restructure the debt, we need to address the pensions which are becoming a massive problem and are a massive expense for the city.
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we can't just cut the salaries of our employees and pay them less money. they will win that lawsuit. >> you know what's funny here, poppy, it sounds like he's talking about the federal government, because it's the same problem, we have got an economy that's not performing and nobody can pay their bill, if it's in scranton, you think it's a scranton problem, if you're in san bernardino, you think it's a san bernardino problem. we have got to get our manufacturing jobs back. i want to hear obama, i want to hear romney talk about how we get the jobs back in scranton and san bernardino. >> the manufacturing loss is in the millions in the last decade. all that's not coming back. >> why do you say that those jobs aren't coming back? the problem we have is --
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>> because i talked to the heads of big, big companies, general electric and others that have brought some of those jobs back here, but a lot of them aren't coming back, and steve jobs says the same thing with apple. >> general electric is a big part of the problem, they offshore to china, they make a bunch of money over there and they take their jobs out of skinecta skinectady, and they tell you that we can never give them back. >> professor, i want to give gary the last word. gary go ahead, i just want to preface it by saying it's interesting that the "l.a. times," the mayor -- it was a bad idea, didn't cut their costs significantly and he said it hurt their reputation, so that's something to think about too, right gary? >> it absolutely is, but if you look at the problem we have, we simply can't keep going the way we are, we need to do something
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to cut the structural deficit. and creating jobs is a great idea. if we do this correctly, if we have a properly planned bankruptcy. we can reduce our debt service, we can redugs the muni compensation, we can cut the senate and get this city operating. there's no reason we should have that kind of a gap. we need to do something immediately, right now, at the local level and bankruptcy does that. >> gary, thank you. professor novaro thank you, appreciate you both coming in tonight. the fbi will review thousands of criminal convictions because they might just be wrong. i'll talk with a former fbi special agent who has helped free men who were convicted by mistake. that's coming up next.
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i have dreamed for this day right here. i want to show the people that we did not do this crime. >> it's been a long road, but i
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had to stay positive. >> i'm glad people have finally seen this for what it is. and i just want to go on with my life. yeah. no amount of money could make up for the six years i sat in prison as an innocent man. >> it's a moment i could not have even imagined. >> it's overwhelming. an hour and a half ago i was in prison. i always knew one day i would walk out a free man. >> they had the wrong person and it took them a while to straighten it out, but all i care about right now is that they did straighten it out. now i can go on with my life. >> the moment they told me, well, we found your dna, it was like oh, my god, you know, i'm going home. >> those are the voices of the free, exonerated for crimes they
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did not commit. but could we see thousands more in the years to come? the fbi and the justice department have launched an undertaking unlike any they have ever done before, examining criminal cases that may be based on faulty evidence annal si. so you have some really interesting perspective, i think, because you work to help exonerate two individuals, you reworked their cases, you were telling me during the break, you had to do it in your own time, you couldn't be paid for doing that. give me a sense of how big an undertaking, how massive an undertaking something like this is? >> i can't even begin to imagine what it might take. i know in the particular cases i worked in, it was unbelievable the amount of time and the effort and the obstacles that
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you run into it. if you think about that the fbi were to do this, they would do this in their field offices, i suspect they would create a task force which would mean an fbi agent and then some officers from local law enforcement. that's about the only way it can be done and quite frankly, maybe you can only do one or two cases a year. >> do you have any insight as to why this is happening now? i mean we know the innocence project for example has worked on this for years, this is their life blood, this is what they do. but why is the fbi undertaking this now? >> you know, i can't answer that. i guess, though, as all of us sitting across this great country, we can be thankful that the bureau is going to move in that direction. you know, it will sound cold, poppy, but i haven't been a person that was in jail that will never tell you that they didn't deserve to be.
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obviously there are some that did not belong there and i was either lucky or unlucky, however you want to say it and i was convinced to look at two cases and work those. both of these men had been in jail, spending a long time in ja and absolutely did not think they would ever get out. so it's rewarding, but it's almost unbelievable what you have to do. >> i know that you left the fbi about 15 years ago, but i want to play something interesting that was reported in the "washington post" in april. they reported that justice officials had known for years about questionable forensic evidence or testimony in some trials, but they didn't take a new look at the cases at that time. they didn't notify the defendants or their attorneys about possible problems with the evidence. and your reaction, did anything like that occur while you were working at the fbi a that you know of? >> i don't know and i would
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venture to say that most of the agents did not know. if that happens, that sounds bad on the surface, we need to get that corrected. i will tell you that me and most of the agents i have worked with would go out of their way to work real hard to make sure that the person that was potentially going to be indicted, arrested and hopefully conflicted, that it was a righteous case, meaning that there was no doubt that that person was guilty. we're not talking 99% or 99.9%. it has to be 1100%, it's not worth going. the justice system cannot be allowed to go a that way. >> you said one of the biggest challenges was dealing with families on both sides, reopening that wound that the families thought was settled on both sides. explain. >> well, really, you know, there
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are always going to be least the minimum of two victims. you've got, if someone wrongfully goes to jail, that is. you have the person that is in jail that is victim, and you is the families of in these cases family members that were murdered. they think, the family does, that justice has been served. and all of a sudden, somebody comes and says we're going to turn this cart upside down and we're going to shake it up and sometimes they're going to walk away and after all this time has passed, how do we find this person that did do the crime, that caused my loved one to die. >> if it is indeed leaning towards another person, if they are exonerated if they can even
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be tried depending on the crime. >> it does and it requires a s amount of time. because you have to go back in there and hopefully uncover some evidence that will then allow the attorneys to create an appeal on new evidence. a difficult task. >> thank you for joining us tonight, we appreciate it. we're going to update you on all the stories of the day, and this. the black vote helped the president win the white house. but are those votes slipping? >> you vote for somebody you can relate to. you're now out and about and you want to keep updated on cnn, now you can watc it on your cell phone, even at work. yeah, we found that wonderful thing.
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tour -- sylvester stallone's son found dead inside his home. 36-year-old sage stallone performed in a few movies with his father. authorities say foul play is not suspected but an autopsy will be performed. u.s. olympic goalie hope solo says the olympic village was home to nonstop antics including alcohol and sex. she said, quote, athletes are extremists, when they're training, it's laser focus, when they go out for drinks, they drink 20 drinks. dominique dawes talked about with our own randi kay this morning. >> i think that she was right that athletes do have laser
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focus, but that was not my experience when i stayed in the olympic village. turning to politics now, overall mitt romney and president obama are neck and neck in the polls except when it comes down to race. look at this, among white voters romney has a 15 point advantage over the president. but when it comes to black voters, it's not only close, only 5% of black voters say they would vote for governor romney. we talked with voters here in atlanta about why they think that is. >> you vote for people that you think you can relate to. that you feel that can walk in your shoes a little bit more than the other. >> as far as being a black american, that's the closest thing we have to being in the white house. >> here to talk about this race for the races, anna navaro and
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frederick harris, he's director of the center on african-american politics and society. anna, let's start with you, because we all know right now, we have heard bits of mitt romney addressing the naacp this week. there were times when she was cheered and applauded and there were times when he was booed like when he said he wanted to repeal obama care. but there was one thing that stood out. take a quick listen to this. >> i believe that if you understood who i truly am in my heart, and if it were possible to fully communicate what i believe is in the real enduring best interests of african-american families, you would vote for me for president. >> all right, anna, why doesn't he just tell them? he's saying if you can understand what's in my heart then you would vote for me, and i would be the best candidate for you. why can't he just tell them? >> that's a good question, i
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think mitt romney has a problem emoating and i think we all need to hear more about what's in his hard. but i don't think that mitt romney went to the naacp to speak to the 500 people that were in that room. and he knew he was going to get booed. i saw him get booed for the same line about obama care when he spoke to a latino audience. he said i'm going to be consistent, and i'm going to say the same thing to every audience. that's a choice he's made, it was courageous for him to go there. the naacp is a nonpartisan organization, they gave him a lot more applause than they did boos, they give him one or two boo lines and they did 25, 27 applauses, that's what we've all focused on and although they are nonpartisan, their members can be partisan and most of them are and most of them are democrats and most of them are for barack obama.
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>> you said he was applauded, he was applauded when he talked about defending traditional marriage and other topics. why do you think so, professor, that he's having such a hard time resonating with black vo voters? >> i'm sure how courageous he is. i think he's trying to come off as this passionate conservative like he did in 2000. i don't think that black voters care about what's in his heart, i think they care more about what his policies are going to be for black america. what is mitt romney's plan for the high levels of black unemployment? so, it was mostly rhetoric, it was mostly him bashing the president again about obama care and so unfortunately, the republican party has provided no new bold initiatives or alternatives when it comes to black america. we hear the same old tired
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proposals around vouchers that have been taunted around ever since reagan was in the white house. i don't hear anything new coming from the republicans. >> let's talk about jobs, anna, you first, even president obama who has the support of the majority of black voters, you've got almost 14.5% unemployment for black americans. it's 7.4 for white americans and it's 8.2% average and for hispan hispanics, it's 11%. so when you're addressing that group that was just so helpful to the president in 2008 and getting him elected and jobs are the number one issue, once again the economy and job this is election, has the president failed black voters when it comes to jobs? >> you know, that's going to be a question that black voters are going to have toanswer, you're looking at black voters that
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have been disproportiony -- it's a painful, painful statistic, i think one of the problems that barack obama has with the black voters is that there were huge expectation expectations--the first black president would mean and i think many of them are disillusioned. the same way that many latinos are disillusioned. there are a lot of promises from barack obama that he still has the support of the african-american community, it has slipped according to polls 7% or 8%. and that can make all the difference in states like florida that are going to be very close. >> you're talking about the gallup poll, in 2000, the -- it's very important when you automatic talk about certain
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states, when you talk about north carolina where the president in 2008 won by a very narrow margin. professor, i just want your opinion when you've got black unemployment at almost 14.5%, what does that do to energizing that base for the president? >> i'm sorry, is that question for me? >> yes, professor. >> well, i mean it's a very difficult map, unfortunately, half of the black electorate are in predictable places in the south. the place -- so what he has to do is really make the case, he needs to make the case about why is it that he hasn't been able to come through with the small promises that he did make in 2007, 2008, particularly around criminal justice reform. >> professor on jobs, on jobs,
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how critical is it? >> it's difficult, what should have happened during the first two years is there should have been a massive job plan coming out of congress with the president's signature, unfortunately that, didn't come through, the republicans came in, they blocked him ever since, but what he needs to talk about -- >> he started off with health care reform, that was the administration's choice. >> and he had two years where he had a democrat house and a democrat senate, let's not forget it that. >> exactly, as i have written about in my book "the price of the ticket" i think that was a huge mistake. but what he needs to do is go forward, looking at, talking about what specifically he plans to do if he gets re-elected. what is he going to do about black unemployment, what is he going to do about the promises he made about the promises he made in 2007 and '08. i think that's going to close the enthusiasm gap that appears to be a problem among black voters. >> interesting conversation
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blast off, international space station, this is just moments ago when a soyuz russian made space rocket. they're going to spend four
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months in orbit. docking day is tuesday. and as mitt romney fights to gain traction with black voters, the -- they nameded condoleezza rice has a front runner for mitt romney's vp ticket. >> guys, you know, condoleezza rice said about running for office to cnn piers morgan, i want you to take a quick listen to what she said. >> i cannot imagine myself running for office, not because politics is so tough. but it's just not me. >> she's said it time and time again. this is a policy woman, she's an intensely private woman, she really has no interest, at least she said in the past in running for office. this service is on the drudge report. pro-fes sor professor what's your take? is this even probable?
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>> i think this question about having might have been north voters on the ticket -- romney has no foreign policy experience and i think if anything, he needs condi rice for that. >> but anna, when we look at how central she was to the bush administration, when it comes to the invasion of iraq, defending weapons of mass destruction that didn't exist and when it comes to abortion, she's mildly pro choice, she's not on the same page with mitt romney when it comes to that. >> that's the problem with the conservative base in the republican party. probably if condi right was being considered earlier in the week, she's probably not as highly considered at this point in the week. one was their reaction from the conservative base. mitt romney has promised that he's going to have a pro life number two and they're going to hold him to that and number two
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is actually the reaction from condi rice herself who has said and let it be known again this week that she is not interested in being in politics she's not interested in being mitt romney's vp. i'm really intrigued by the idea that her name is even there. i think it's wonderful, she's an intellectual woman, she's a woman of substance, and i think she deserves just on her mirror rids to be considered. however she's never run for office and though she's been on the field for many, many years, there's a huge difference between being on the field, being part of the field and being the number two at-bat, there's a huge difference and it's two completely different games. >> not to mention the timing, it was bain, bain, bain all week, and then it's condi, condi, condi, so you got to wonder about the timing. >> i think romney needs to stretch all this out, he just needs to pop a name out of left field and we'll all go with that. >> i thank you, we got to go,
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life. many children drop out of school because they don't have student uniforms and textbooks, i know the only thing thway that kipto change is through education of the children. we help the children by paying for their schoolbooks, school uniforms. our main focus is our tutoring program that we run four days a week. as young people who were born and raised here, we know the challenges of this community. we also do a number of activities. we have got to come together for fun while we also come together for academics. >> they gave me a chance to go to university. they also paid for my fees. i also come back here and help volunteer. a little can go a long way.
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>> i did not go to university, but to be able to help them, i'm excited. >> i'm going to be a lawyer. >> i'm going to be a nurse. >> the work that you're doing here is bringing change. ♪ pop goes the world ♪ it goes something like this ♪ everybody here is a friend of mine ♪ ♪ everybody, tell me, have you heard? ♪ [ female announcer ] pop in a whole new kind of clean with new tide pods... a powerful three-in-one detergent that cleans, brightens, and fights stains. just one removes more stains than the 6 next leading pacs combined. pop in. stand out.
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empty seats at the american idol judges table, j-lo is out,
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steven tyler is out. and the challenge is going to be to find -- after some long, hard thoughts, i decided it's time to let go of my mistress before she boils my rabbit. what do you think? >> i think that "american idol" viewer ship is down. steven tyler will be fine, he's on tour, i think he's eligible for social security now, he's 64. i think he'll land on his feet and the show will go fine. >> this is the highest rated show in television in the u.s. and big, big sponsors like coca-cola and ford. >> you know what's interested? me, i am available for being a
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judge on "american idol" maybe lindsay lohalohan. she's been in front of more judges than most lawyers. think outside of the box, american idol, get chief justice john roberts, he's big on health care. it will bring politics, it will bring older and younger people. maybe charlie sheen. let's have the whole cast of jersey shore together at one time. >> that might watch. >> we have to bring something exciting back to the show. it's still number two, but since 2003, it was the number one show and their average age of viewers is up to 50 years old, which doesn't sound that old, but for them it is important. >> it's all relative, i am voting for you for judge. we'll be back with dean. vacation or die, it's got a lot of cnn viewers fired up, he's going to explain coming up next. [ buzz ] off to work!
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did you know honey nut cheerios is america's favorite cereal? oh, you're good! hey, did you know that honey nut cheerios is... oh you too! ooh, hey america's favorite cereal is... honey nut cheerios ok then off to iceland! until i got a job in the big apple. adjusting to city life was hard for me. and becoming a fulltime indoor cat wasn't easy for atti. but we had each other and he had purina cat chow indoor. he absolutely loved it. and i knew he was getting everything he needed to stay healthy indoors. and after a couple of weeks, i knew we were finally home! [ female announcer ] purina cat chow indoor. always there for you. i think we should see other people. in fact, i'm already seeing your best friend, justin. ♪
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dean says you better vacation or die and he is here to make his case, 30 seconds, dean, really? >> cnn.com, read my article, i'm telling you, everyone watching, go on vacation, don't put it off, study after study show that your chances of a heart attack go way up if you don't vacation. that's what don lemon is doing today, saving his life. if you don't take a vacation, you're going to die,