at two hotels in new york has been increased. we are learning there is no direct threat, but because an overseas liaison from the new york police department was there at the marriott in jakarta when that explosion happened there, reacting to it and increasing their security. we will be listening for comments coming from the police commissioner ray kelly any moment here. we'll make sure to stay on top of that story for you, of course. live coverage from the scene of that deadly balm lly bombing ip next here in "newsroom" with t.j. holmes. >> here are the stories we're working on. two suicide bombings in neighboring hotels in indonesia's capital. we have a reporter on the scene. we'll get to him in a moment. also critical questions about your health care. what will it cost and who will pay? i will be joined by a top health

official. also, meet our cnn hero. a judo olympic medalist fighting to change the lives of kids and you are in the "cnn newsroom." all right. take a look at this. new video we're getting in of that hotel explosion in indonesia. you see this, an unidentified man walking through the lobby of that marriott and then, bam, he was wheeling a suitcase heading towards the restaurant there. seconds later that large explosion. smoke forced out of the restaurant. again, this is new video we're just getting in and we're highlighting it for you. the man going through there with that sue ks and once he gets to a certain area then we sthee explosion. there has been no suggestion just yet that the man seen in the video is a suspect, however,

people just piecing this together. you can draw your own conclusions from what you're seeing, authorities will look at that video and that man and everyone else seen in that video quite closely. the terrorists delivered back-to-back bombs in two luxury hotels in the capital of jakarta. six people confirmed to be dead, however, official os there say possibly that number could grow. we know also two suicide bombers were killed. let's go live to dan rivers on the scene of those attacks. dan, has anyone come forward to take responsibility for these bombings? >> no one has so far, but all indications are pointing at the moment to an attack by a group called jemaah islamiyah. they have hit similar targets in the past, including the very same hotel here in jakarta here in 2003. as you say, the police now will be looking closely at that footage to see whether or not

the man seen wheeling that suitcase is connect would the blast or whether has he's just another guest at the wrong place at the wrong time. certainly that together with other evidence that they're gathering will be critical, including specifically an undetonated bomb that they found on the 18th floor in a room that they think the terrorists were using as a sort of command and control room. they have been in that room for a couple days before this morning's blast. so, that may yield vital information if they can go back through the tapes and work out who was using that room. they could have a whole host of information. already, we're being told the explosives in that undetonated bomb are of a similar sort to a cache of explosives found in a house in west jarva a couple weeks ago which was linked to jemaah and indonesia's most wanted terrorist suspect and

connected with a whole bunch of bombings here, including bombings in bali way back in 2002, which left more than 200 people dead. many of them western tourists. >> a couple things before we let you go. whoever is responsible possibly check under to that hotel and were in those rooms for a while. first of all, here, do we know that authorities there are holding anyone in custody right now, questioning some folks in connection with this bombing and also give us an idea of just what security was like in and around that hotel. >> yes, first point, no, we're not aware of anyone being held in custody. the police are indicating that they think at least two of the bodies they covered of the eight people killed they think were the suicide bombers. one in the ritz-carlton and one in the marriott. four other unidentified bodies and they don't know who they are. whether they were guests or victims or part of this

terrorist shell, if it is a jemaah cell. they think there were four people checked in. so, it looked like possibly a group of four people and possibly two who have been killed as result of suicide bombing. as for the security, well, both of these hotels or any hotel here are very heavily protected. they check your car when you're going in and they look in the trunk. they put you through an x-ray scanner and put your luggage through an x-ray scanner and normally very heavy security here. they know from attacks in the park that they need to be careful. the question is, how did these explosives get these into the hotel undetected. >> dan rivers there on the scene, thank you very much. president obama released a statement condemning the attacks and we got this just moments ago saying, "the american people stand by the indonesian people at this difficult time and the u.s. government stands ready to help the indonesian government respond to and recover from these outrageous attacks as a

friend and a partner." we won't go too far away from that story. we'll keep an eye on it, of course. let's turn to other news right now, including the confirmation hearings pretty much wrapping up for the supreme court nominee sonia sotomayor. the tough job for her is over and now comes the vote. brianna keilar joins us now and now comes the vote. when is the vote, brianna? >> we're expecting a vote by the senate judiciary committee on tuesday then. we're expecting a vote by the full senate before congress goes on its recess in august. so, the expectation is that sonia sotomayor will be in place as a supreme court justice well before, actually, the court begins its new session this fall. >> we were watching these hearings closely over the past several days. of course, but, after sonia sotomayor was done with her part. some of the most interesting testimony, some might say, were from some of the witnesses that came, including some of the new

haven firefighters that were part of that case, of course, that new haven 20. so, tell us what was the point first of all in having those firefighters there and what did they have to say? >> this was pretty compelling testimony. republicans invited these firefighters to testify and they were part of this case where they claimed discrimination after the city threw out a firefighter exam after no african-american firefighters passed it. this was a case that sonia sotomayor's appeals panel ruled against the firefighters and the supreme court overturned that decision, republicans really taking issue with sonia sotomayor's judgment on this case. so, ben vargas, the only hispanic firefighter among these plaintiffs, he testified here before the senate judiciary committee yesterday. he said he congradilates sotomayor. he shares her puerto rican heritage and great she's heading

towards this accomplishment but he really felt robbed after this exam being thrown out after he put so much work into it. >> i knew i would see little of my son during these months when i studied every day and i placed photographs of my boys in front of me when i would get tired and wanted to stop, i would look at the pictures, realize that their own futures depended on mine and i would keep going. at one point, i packed up and went to a hotel for days to avoid any distractions and those pictures came with me. i was shocked when i was not rewarded for this hard work and sacrifice. but i actually was penalized for it. >> the result of some compelling testimony from frank riccia co-plaintiff in this case. he is dyslexic. you can see as he gave his testimony yesterday he ran his finger along the words to make sure he stayed on track. he got a tutor and worked really

hard to pass this exam and was very disappointed, as well. for her part, t.j., sotomayor said when she made this decision she and the other judges were bound by precedent and the supreme court essentially changed that precedent and she said now, of course, will be bound by their decision. >> brianna keilar, interesting week up there on capitol hill. going to turn now to a story out of chicago. let's show you this video. what is being called now a level two hazmat situation. what you're looking at is a building that has essentially been leveled in some areas, at least in some parts because of an explosion. this is a biodiesel plant. you see a few workers milling abo about. we are being told, however, that there is no threats, they don't believe, in the atmosphere, at least some of these firefighters and some of the people around. what was happening here is that chemu chemu chemicals were being mixed and this is at a factory on the west side of chicago. chemicals were being mixed and a truck was also unloading at a

diesel truck at a time. two people injured and one of those injuries being called fair and the other being called serious injuries. no other injuries to report at this time. but, again, some of the latest video we are getting in. firefighters, again, this could have been a much worse situation when you're dealing with chemicals like this. firefighters out there working and the reason why they're not in hazmat suits you oftentimes see they say even though this is a level two hazmat situation, they do not believe there is any threat or any chemicals out in the atmosphere that could be a threat to anyone. two people injured and we'll continue to get more details. the biodiesel plant on the west side of chicago. turn to health care now. house lawmakers back at work this morning and really been a lot of back and forth about this health care reform. a house committee is baiting amendments to a bill by democrats. but in a setback the congressional office said the bills released so far will not reduce health care costs that, of course, is what they need to

do. find a way to pay for this thing. another development, the house ways and means committee voted early this morning to impose new taxes on the wealthy to help pay for the health care overhaul. the house proposal for a store tax to pay for health care reform is getting a fairly chilly reception from some senators and bill nelson of nebraska. ed henry interviewing the senator right now on his interview show. there's ed. let's dip in and listen in to his conversation for a second. >> now, what about the surtax that people have been talking about on the house democratic plan, not just republicans, but some conservative house democrats have been saying they're not in favor of this surtax of about 1% to 5% on the rich to pay for health reform and you're a leading democrat and a power broker and do you support the surtax? >> no, i don't. i know it's going to be difficult to find a way to be

able to finance the additional, the addition of millions of americans into the health care program. those who don't have the resources to pay off all the premium and what we have to do is find a way that's fair and it's not fair to single out the war fare in the process of odoing it. it may be handy to try to soak those who have more income, but i don't think it's the fair way to do it. there are other ways that i know senator baucus and senator grassley and the finance committee are looking at and i'm anxious to see what they come up with and see what the president supports. >> you went behind closed doors of the white house yesterday. >> we jumped in there at a good time, actually. ed henry on the phone there interviewing senator ben nelson of nebraska, talking about that surtax. talking about health care. one proposal is to try to pay for some of that health care reform by taxing those who make over $350,000.

you just heard the democrat there, the senator from nebraska saying, no, that's not going to happen. that's not good to get involved in this class war fare. it is not fair to do. said on "american morning" earlier today, that's a nonstarter in the senate. we'll see where that goes. so, thanks to our ed. we want to hear from you about health care on our newsroom blog. who should pay for health care overhaul? should the government mandate coverage and what do you have to have in your health insurance plan? you can join the conversation at cnn.com/tony. also i-reports on health care and send those to ireport.com. we'll continue to health care discussion and what would be included and what would it cost you? we'll hear directly from the white house and our medical expert weighing in, as well.

debateorve health care

reform and what is it going to cost and then, of course, the issue how it will affect you and your medical care. our senior medical correspondent elizabeth cohen here for a health table reform of sorts and linda douglass. linda, i will start with you. how big of a blow to hear the cbo director come out and say, this is not going to work. he was up on the hill yesterday before they voted in the house on their particular bill, essentially saying this is going to cost more, there are no savings costs in there. how big of a blow was it for the white house to hear that? >> it wasn't at all. i think he would even agree that that's probably not exactly what he said. number one, he was talking about a bill in the senate that doesn't have any jurisdiction over medicare and medicaid, which is the way that the government can control costs. stl will be a separate bill in the senate that will deal with that. it doesn't have jurisdiction over controlling those costs. he was talking a little bit about the house bill.

he said, look, this is a preliminary look and i haven't finished analyzing this and this bill going through the committee process right now and does contain substantial savings, in addition to many of the president's ideas and the ideas that are being embraced by congress that will, in fact, not only lower costs for families and businesses, absolutely, but will begin to lower costs overall. the very rapidly rate of health care by doing such things as preventive care and emphasizing primary care and starting to pay for quality rather than quantity of services. >> but, linda, we have this exact quote and i'll bring in elizabeth cohen and we have his exact quote and people can take things different ways, but he was pretty clear on what he was saying here. i'll read it to our viewers and to you. i know you're familiar with it. >> linda, you didn't like t.j.'s characterization of what he said. i will read his act words. we do not see the sort of fundamental changes that would

be necessary to reduce the trajectory of health spending by a significant amount. this is the really important part. on the contrary, the legislation significantly expands the federal responsibility for health care costs. "the new york times," associated press, cnn took that to mean, hey, these bills don't curb health care spending by the government, it increases it. >> well, first of all, the president has made it very clear that health reform, which will lower costs for family and businesses has got to be, cannot add a penny to the deficit. it is going to be deficit neutral. definitely a condition that he has put on any health care plan. the congressional budget office made very clear in its testimony that they have not finished looking at this. it is going through the process. there are many ideas out there that don't necessarily, that can't be computed, but it will definitely lower costs, just as i mentioned emphasizing primary care and health i.t.,

computerized medical records beginning to put payments together that just don't pay by every single little procedure, but pay for your entire care overall. you know, you may remember that the president said in a letter to congress. >> you made a great point, linda. you named some specifics. other provisions that are supposed to save money and he looked at those provisions and said, no, i don't think it will save money. >> there are a couple different ways of looking at saving money. one is making specific reductions to medicare and medicaid. those are amounts of money that congress can, that the congressional budget office can tabbialate and they can be measured precisely. there are many other measures that are very important that are also included in this legislation that would lower costs and not be measured in that way. which he absolutely acknowledges. don't forget, by the way, elizabeth, that the president also said he was oepen to the idea of a commission, an independent commission that would begin to determine how doctor services and other kinds

of payment reforms are going to be carried out in medicare and medicaid. so, this would be an independent commission that would make these determinations separate from the political process. this is an idea that the president said he was open to and they've been talking about that this week. >> linda, let me ask you something else the president is open to. i want to get a blog comment and answer one that was sent in to us. but, first, is the president in favor of the proposal out there that would put a surtax on those making $350,000 or more in order to off-set some of the costs of health care. anyway i can get a yes or no on that? >> the president made his own proposal which is returning the rate of itemized deductions back to where they were when ronald reagan was president. that is the proposal that he has been putting forward. this is also an idea that clearly is being looked at very closely and the president says there are a lot of good ideas, including this one that are being evaluated right now through the process. he likes his idea.

but the important thing is that this is, these are proposals out there that do not affect people who make under $250,000. and these are ideas that will begin to remove the burden of rison health costs on our economy and businesses. the most important economic point we can make. >> was that a long yes? he would support that surtax? >> what i said was, a president liked his proposal and the finance committee, the other committee, the senate committee has not yet come forward with its proposals and these are all ideas that he considers to be very, very interesting and worth considering. >> but does he support this one? >> this particular surtax. i know he has his, they're not talking about his, they're talking about theirs. >> he said this is a good idea. >> it is a good idea. >> good idea out there and he also has been promoting his own idea, which is being evaluated, seriously, by the senate finance commity and the other body that will have a proposal. let me make a very important

point, the president wants the majority of the funding from health reform to come from savings. these are dollars that are already in the health care system that will be redistributed to start lowering costs and that's where the majority of the money should come from. >> we have to leave it there and we could spend the rest of the hour talk about this stuff. we appreciate you being here and, like i said, it takes two of us to the one of you out there, linda. but, thank you so much. elizabe elizabeth, thank you so much, as well. we'll see you next time. >> thanks for having me. we will stay here, we will, of course, continue to follow health care and several breaking news stories today. keeping an eye on what is happening in chicago where there has been an explosion at a biodiesel plant there. also keeping an eye on the bombing of the terrorist attacks in jakarta. stay with us, neither one of those stories are not too far, certainly not far from our radar here. also talk about what is happening in iran. a warning on iran on islam's holy day and protests in the

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oh. for students college is a time of first. your first love, your first heart ache, but, really, your first loan, your first credit card and a whole host of problems. the bills that come with all those firsts sometimes. gerri willis joins us with today's top tips and we have a few questions here. hello there to you. >> hello t.j. good to see you on a friday. >> good to be here with you. j.h.r. sent this into us. i have a federal student loan that i've had for a while, it's in deferment right now because i'm currently unemployed. any new programs through the government that could help? i bet a lot of students, or former students, are in that same position. >> on july 1st the government introduced a student loan repayment program and that pegs

your payments to your income and it's called the income-based repayment plan and it applies only to old and new federal loans, given that you have no income, you could be a good candidate for the program. just go to the department of education's website at studentaid.ed and see if you can benefit from the program and make sure you talk to your lender. they will calculate your eligibility. >> i have one here, now a sophomore in college has no credit. said i recently applied for a student credit card, is that the right way to go? now, we all remember those college days, they all had those tables set up, get a free t-shirt and you get a credit card. >> look, getting a credit card is the first step to creating a credit history and using a sfunt credit card is a good way to go, but you have to have good credit practices. for example, don't charge more on your card than you can afford and don't use your credit card for anything that will be gone by the time you get the bill like pizza or beer.

strive to always pay the balance in full and check in on time. once you graduate, you want to transition to raregular credit card because you'll get a better interest rate and larger credit limit. >> gerri, where can i find a genuine government site that provides information on educational-related grants? >> good question. check out grants.gov. this site has a database over 1,000 grant programs and run by the u.s. department of health and human services and search for grants in a number of areas, including education, the environment and business. you can also check out educationgrant.com where you can find out about government grants like the pell grant or other needs-based grants and if you have any other questions, send them to me and we answer those questions right here every friday. >> all right, gerri, we appreciate it. thank you so much. we want to turn now quickly. go to pensacola, florida. news conference going on right now.

this is having to do with the couple and all the kids that were murdered down there. let's take a listen. i believe it is a brother, the funeral is today. family members giving a press conference. let's go ahead and listen in. today is a day to challenge ourselves, to embrace the differences among us and to find the kindness in our hearts. by example, byrd and melanie taught us to overlook disability and be color blind and be patient with others and to give up ourselves. their lives centered around children. their family and each other. they loved deeply and unconditionally. they embraced the complexity of raising children with special needs. and they were their advocates. they gave these children a joyous childhood and a much-needed voice. their lives were cut way too short. but their legacy will live on. as albert einstein said, our

death is not an end if we can live on in our children. they'll live on in our hearts forever. thank you. >> thank you, for respecting the family's privacy. >> all right, that was a quick press conference there with one of the family members related to melanie and byrd billings. this was the couple that was murdered. this has certainly got a lot of attention because this couple was known for having 17 children, i think 12 or 13 of which they had adopted and many of them had special needs. so, now this new information, the funeral is happening, expecting to happen at the top of the hour there. thousands of folks showed up for visitation and they expect more folks to show up for the funeral, as well. ed lavandera has been on this case. ed, jump in here with me. this case, of course, has taken so many twists and turns. eight people have been arrested.

six men and a teenager have been charged in the death and also a woman charged, as well. but people trying to figure out exactly what was the motivation behind the crime and we were thinking maybe robbery, but it sounds like some of the things that were taken didn't turn out to be of much value. >> well, you know, we're still trying to figure that part of it, t.j. as you mention, all these different people arrested and still great questions of why it took so many people and why did so many people come together to pull off these murders, if what authorities are saying here are true. so, there is still a lot of debate about what exactly was the motivation behind that. authorities and prosecutors here saying that robbery and home invasion is the prime motive but they also add the kauvuate there, don't be surprised if there aren't some other motives, perhaps lesser motives but that seems to be the primary. that kind of keeps that level of intrigue up on exactly what was going on here. what you hear around town here,

t.j., the sense that something bigger is going on here. getting to the bottom of that has been rather difficult all week. >> ed, do we know, are there police done arresting people? >> actually, it doesn't sound like they are. we're told by authorities that even though eight people have been arrested, seven charged with two counts of murder, eighth person, the person arrested yesterday. we talked so much about pamela long wiggins charged with accessory after the fact. two or three other people of interest and we're told this morning there could be another arrest coming next week. it's still, even though the bulk of their investigation is over, they're still tying up loose ends. it seems like it's not over yet. >> ed lavandera, thank you so much. again, we're making a reference there going to ed, doesn't seem like some of the stuff might have been much value but taken from the home and now according, we just got the information from the press conference, children's medications in it and documents,

maybe nothing really of value there. leave us all scratching our heads what this was all about and why it took this many people to participate in this crime. ed, we'll check in with you plenty more. thank you so much. also a warning from iran on islam's holy day. we see more protests in the street and some of it captured on tape.

all right, welcome back here. we're here, this is our international desk. really iran desk for the past several weeks given everything we've seen since the election there's and the demonstrations and protest there's. reza sayah our point guy.

you have new pictures. you tell us where you want to start. where should we start? >> new pictures that show a lot of people coming out to hear rafsanjani speak. we haven't seen supporters come out in a couple weeks now because protests have been banned. take a look at these pictures coming in to the iran desk. this gives you an idea of the amount of people who came out. all walks of life, it looks like, all types of ages. some of these people according to witnesses and according witnesses telling us at times they use tear gas to disperse the crowd. this is a video that appears to show the crowds running away from tear gas. if they weren't using tear gas, at times according to witnesses, they were using batons. if we roll some video, i believe we do have some video that shows security forces going through the crowd. now, here you're seeing

protesting and in a few seconds you're going to see security forces on motorcycles, on those red dirt bikes coming through the crowd with the helmets waving batons and then you see a surge of people moving. but, t.j., this is something we hadn't seen in a while. these types of numbers coming out because protests have been banned. this was an official event. government fashion. they came out and lots of slogans we hadn't heard before. notably, death to russia. another chant, russia, shame on you, let go. your dominance on our country. russia, of course, one of the countries that supported iran's elections and the aftermath. the opposition supporters speaking down against russia today. >> now, what brought them out this time. we're talking about rafsanjani. were they coming out to see him? >> the former president, political nemesis of mahmoud ahmadinejad, many call him a game changer, a key figure for the opposition and there you e

see, he was one of the opposition leaders that showed up, but many were eager to see what rafsanjani would say. would he support the regime or the opposition? he did deliver criticism to the leadership. it wasn't searing criticism, but criticism nonetheless describing the aftermath of the elections as a disease. he called it leprosy. take a listen. >> translator: doubt has been created in people's minds. we consider doubt to be the worse calamity. this doubt has attacked our nation like help raeps. there are two currents, though. one doesn't have any doubt and moving ahead with their job and a large portion of the people who say they have doubt. >> so, it was comments like that that really got the crowd going, especially the tens of thousands of people outside tehran university who couldn't get in really gave a very loud response and he also called for all the

detainees arrested after the elections to be freed and he also criticized the media crackdown. so, he really left the door open for the opposition to continue its movement. that's something supporters like to hear. >> this might start back up like we saw several weeks ago. >> definitely not ending from what we saw today. >> we'll check back in with you and the rest of our producers over at the iran desk. right now shoot across the room to reynolds wolf keeping an eye on things weather. >> from the carolinas through virginia and maryland and further south a severe thunderstorm watch in effect until 5:00 this evening. if you look at a broader perspeckive, more of the storms develop along the parts of the eastern seaboard and we could see rough weather developing into parts of texas and back to oklahoma, kansas and colorado. meteorologist chad myers will give us the very latest on the severe weather scenario and give

you an idea of the nose dive we can expect in terms of temperatures for this weekend. hard to believe a cool down in the middle of summer. that's coming up right here on cnn "the newsroom." i think i'll go with the preferred package.

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cnn i-reporter. this one comes in to us from greg, he was at the ritz at the

time of the blast. it's not clear what group is responsible for the attack. they believe the two suicide bombers had checked into the marriott days ago. many suspect they were members of an al qaeda-linked group responsible for previous attacks, including one almost six years ago at the same marriott. our i-reporter says security has been extremely tight since the bombing. >> give on the bombing that happened at the marriott previously, you can't drive into the lobby. you have to come in the back of the building to get to the front of the building. the vehicles are searched and there's armed guards at that checkpoint. once you go up to the lobby, you go through metal detectors and bags are searched before you go through the metal detectors. you go into the basement and vehicles are checked, once again, before you go into the basement. so, that's the sort of level of security there is. you know, so, i just don't know

how a person would be able to get that bombing unless there was some level of corporation. >> let's pick up on that point from our i-reporter there. let's bring in terrorism expert peter bergen. i think you can hear what that i-reporter was saying. so, how does one get in there with a bomb. how is security around the country and particularly at a lot of these hotels? >> well, i've been in jakarta in 2005 and the security of these guys hotel are pretty intense. hard to drive a car up because, of course, the previous kinds of attacks intended to be vehicle bombs. how these guys got these bombs in is not clear, but it seems plausible that they might have taken in component parts and assembled them in the bedroom on the 18th floor where they were apparently registered as guests. >> we know the human toll here.

six have been killed. what kind of blow is this to indonesia, which, as we know, pretty stable democracy in that neighborhood. how big of a blow is it for them to have this happen? >> i think it's something of a blow. tourism is a major industry for indonesia, but consistently attacks by the al qaeda affiliate who is believed to have done this attack were targeted by tourist islands whether the tourist island of bali in 2002 and 2005 and the marriott attacks in 2003 that you mentioned earlier and now the marriott attack and also now the ritz-carlton. so, you know, places where western tourists and western businessmen gather have been particular targets of this group. that isn't good for the investment climate in indonesia and not good for tourism, clearly. >> do you buy on picking up on what our i-reporter said there, is it possible bringing components at a time for these bombs any way possible would you

suspect this from what we know now. maybe there was help from somebody on the inside? >> could have been. these are, obviously, large hotels and that's entirely plausible. >> what will indonesia's response be? what has their response been in recent years when we seen attacks like this? >> i think their response going back to the 2002 bali attack when 200 mostly western tourists were killed, initially a certain amount of denial in indonesia that this was a problem that jemaah islamiyah. this group has killed mostly indonesians and not westerners. that is with the help of the australian government who their embassy was attacked in indonesia, quite a lot of their citizens being killed in these attacks and also help from the u.s. government. so, t.j., i would say that the indonesian government has done a good job against this group and

top leaders and bombmakers and the conventional wisdom that i shared was that this group was really on the ropes, but these attacks seem to demonstrate that's not entirely true. >> you are absolutely right there. peter bergen, again, good to have you. cnn national security analyst. thank you so much, good to have you with us today. >> thank you. we'll turn next to the cnn hero of the week. he's using kicks and slams to turn kids away from drugs and guns. taking its rightful place in a long line of amazing performance machines. this is the new e-coupe. this is mercedes-benz.

i think i'll go with the basic package. good choice. only meineke lets you choose the brake service that's right for you. and save 50% on pads and shoes. meineke. let's turn to wall street now. market has been rallying all week, thanks to some impressive profit reports from the nation's biggest banks.

susan lisovicz, we are getting more and more of these good numbers, big numbers, positive numbers. >> well, we're early in the reporting season. next week is really crunch time, t.j., but no question about it, wall street likes what it's hearing, because we heard from four big banks as you said. think about it, these four big banks, jpmorgan, citi, bank of america, goldman sachs, received $130 billion in t.a.r.p., our money. so, it's not only of interest to wall street, it should be of great interest to main street and the theme that we've been seeing is that they are all making money. and two of them, in fact, have paid t.a.r.p. back. let's start with bank of america. we heard from them today. the company beat wall street's estimates, made $3 billion in the last quarter. ken lewis, the ceo, said he's a little bit worried about what he's seeing ahead. why is that? they're making money on trading, but the consumers is a problem. they have a rising unemployment rate and they have a big credit card division. people don't pay as much and

they don't pay on time and sometimes they don't pay at all. that's a problem. bank of america shares are down 2%. dow is down nine points. remember, going in today, the dow and s&p 500, up four straight sessions. nasdaq's given back some, too. it's down seven. nasdaq going into today up seven sessions. so, quite a win streak. t.j.? >> you mentioned some banks there. another one we can't let you go without talking about citigroup. they also got a whole lot of our money, as you said. >> a very, very good question. citi also reported today. citi also surprised the street, made $4 billion, not so much on revenue. it shed assets, in this case, smith barney wealth division, so that's where it made the money. but impressive for citi, because citi has been one of the most troubled financial companies and, in fact, received $45 billion in t.a.r.p. has not repaid us just yet. emphasis on "us" t.j. could use the dough going into the weekend especially. >> all right, susan lisovicz,

get luck getting your money back before the weekend. thanks so much. well, coming up in the next hour of the "cnn newsroom," california politicians have yet to agree on a budget that will close a $26 billion shortfall. one prominent business group is fed up and calling for -- get this -- a new constitution. also, our fredricka whitfield takes us to an environmentally friendly housing development in new york that may have some neighbors green with envy. stay with us in the "cnn newsroom." right now, there's a nurse saving a life in baltimore.

20 minutes later, she'll bring one into the world in seattle. later today, she'll help an accident victim in kansas. how can one nurse be in all these places? through the nurses she taught in this place. johnson & johnson knows, behind every nurse who touches a life... there's a nurse educator... who first touched them. ♪ you're a nurse ♪ you make a difference

well, brazil is one of the most glamorous vacation destinations in the world. but for those who live in brazil's shantytowns, it's far from glamorous. they have a daily struggle just to survive. but one man helping kids find hope despite some of that hardship. >> i've never seen anyplace as beautiful as rio de janeiro, but it does have its dark side. there is violence all over. >> translator: the bad things that happen here are the shooting. >> it's the kids who have the toughest here. >> sometimes i get scared. >> they don't have many options.

kids die every day making the wrong choice, but, you know, every time i see it, the first thing that comes to my mind is potential. my name is flaveio kanto and i'm a judo olympic medalist, but the best part of my life is changing people's destiny through sports. i usually tell the kids that we can't let ourselves get used to the violence that surrounds us. we have to fight back somehow. instead of fighting in the streets, they learn how to use their energy in the right way. >> i feel less afraid. flavio helps me win the championships and he helps me feel very proud of myself. >> helping kids avoid the wrong choice is one of our goals. they don't need to follow their destinies. everyone told them that they would have. they can change it. they're the true heroes.

>> well, july is the last month to nominate a cnn hero for this year. you can do that at cnn.com/heroes. you can also join the fans following cnn heros on facebook. that's where you'll find exclusive photos and videos of all cnn hero nominees. we'll turn back to indonesia now, those hotel bombings caught on tape. take a look at some of the new video we're getting not too long ago. an unidentified man walking through the lobby of the jw marriott, one of the hotels that was bombed there. you see him, he disappears back there, and then the large explosion hits. smoke comes out of the restaura restaurant. moments after that blast, a nearby explosion at the ritz carlton. authorities are looking at that tape. no indication that the man in there, may be an innocent bystander, wrong place at the wrong time or if he's involved in some way. authorities are looking into it. at least six people were killed in the two blasts including the two suicide bombers. eight altogether, but two of

those were the suicide bombers. another 50 people wounded including eight americans. president obama has strongly condemned the attacks and said the u.s. government stands ready to help the indonesia government respond. investigators say the suicide bombers who checked in explosives into the two hotels in jakarta, the two hotels located side by side in an upscale business district in the capital. we are getting i-report photos from the aftermath. this comes to us from a lady named jill. she took the photos from her hotel room. she heard an explosion and saw the smoke rising from the marriott. and she saw another explosion at the ritz. an i-reporter walked ind one of the damaged hotels. take a look and listen. >> when i walked up, the windows were all blown out at the cafe area beside the restaurant. when i walked in, there was glass all over, the floor, the

ceilings were all blown out. just all the furniture's blown around anywhere. things hanging down from the ceiling. it was basically unrecognizable. it was a massive destruction of the actual building, the area. as i said, i've been in there many times. you couldn't recognize it. and then i walked further in and there were just bodies laying on the ground. it was a very disturbing thing. >> and a group connected to al qaeda is suspected of carrying out this attack, and as our barbara starr now reports, finding and taking out terrorists, not an easy thing to do. >> reporter: in the movie "the bourne ultimatum" matt damon plays a cia assassin, but does it really exist? cia director leon panetta just shut down an agency program reportedly aimed at killing al qaeda terrorists. congress may not have been informed --

>> on that's a serious breach. look, you can't gloss over it. >> reporter: -- but experts say nobody should be claimed to be surprised that the u.s. is hunting down terrorists. >> we have seen a range of al qaeda leaders that have been assassinated since september 11th in afghanistan, in pakistan and a range of other places. >> reporter: indeed cia drones flying over pakistan have killed dozens of suspected terrorists in recent years, but jones says one of the diciest missions? u.s. troops secretly on the ground in pakistan, in 2008, trading gunfire with al qaeda. >> there was a special operations force direct action engagement in waziristan. it was for a very short period of time. >> reporter: other hits? somalia, 2007. air force ac-130 gunships launched strikes into southern somalia, but failed to kill their al qaeda targets. iraq, 2006. the u.s. military hunts down and

kill kills abu humane zarqawi. and in 2002, a cia drone kills an al qaeda operative the u.s. says was involved in the bombing of the "uss cole." whether it's the cia or u.s. troops on the trigger, there are rules to be followed. >> the united states cannot ipso facto kill individuals in foreign countries. they're -- generally with foreign fighters, there has to be a determination that this individual in general is plotting and does threaten the homeland of -- of the united states. >> so, whether it's any of these countries that we've just talked about or indonesia, where we saw an attack in the last several hours, experts say one of the biggest challenges to these types of operations if u.s. troops or u.s. agents go in, they have to, t.j., be in

coordination with the host country, or if they're found out, it could be a diplomatic disaster that could reverberate around the world. >> are special forces out there still doing their thing or would we not even know it if they were? >> i don't think we'd readily know it if they were. we're not supposed to know it. but they are out there. afghanistan, pakistan, really the center of a lot of that activity. they are in other countries still today. officials say one of their major jobs, though, has shifted to some extent when they can't target a specific individual, training foreign militaries out in all of these countries to really step up their efforts to go after terrorists. t.j.? >> all right. our barbara starr for us today. barbara, thank you so much. >> sure. i want to turn back to a developing story we told you about not long ago. the chemical explosion at a chicago factory. two people injured in this blast according to our affiliate wls, one of those people in fair condition. officials say the other person was mixing chemicals at the time of this blast. that person listed in serious

condition. fire officials initially classified the scene at a level two hazardous materials response, but the situation was soon considered to be stable. not clear what chemicals were involved. and also, this is happening right now, the funeral for that florida couple murdered in that stunning home invasion last week. let's take you a live picture outside of a liberty church in pensacola. this is where it's happening. our reporter told us a large crowd of family, friends and others attending that funeral. the names of the couple, byrd and melanie billings. they were known for taking in special-needs children. let's check in with our ed lavandera in pensacola. again, ed, this is really just a confusing situation to put together, a confusing crime with all these people involved. what is the latest? eight people under arrest and i was amazed to hear you say a little while ago that they might not be done arresting people. >> reporter: unbelievable, right? authorities have told us there is the possibility that another arrest could be made next week

and there's still or three other people of interest that they're looking into. but, really, what we need to get to is this statement that has been made by the family's attorney, before going inside of this funeral service this morning. you know, there's been a lot of talk about what exactly has been inside this safe. that was what was taken from the billings' home when these murders occurred, so obviously a great deal of speculation as to what might be inside. and even though authorities and prosecutors here have tried very hard to keep that information very close to the vest, they say that's the kind of information they don't want to reveal, because it would compromise their prosecution of this case, the family attorney revealed that information just a short while ago. >> as a result of the intense speculation regarding the motive of the crime, i have been authorized to tell you that the safe that was removed from the billings' home contained only children's prescription medications, important family

documents, and some jewelry of sentimental value. hopefully, this will put to rest the intense speculation and rumors that are swirling about the billings family. >> reporter: and, t.j., i think a little bit of a backstory here. we have been dealing with this attorney for several days now. there's a great deal of sensitivity and frustration that we sense from the family's part when the reports of the dea's involvement in this case. there's been a lot -- a lot of frustration that they were worried that the people would paint the connection between the dea and the billings family themselves. so, that has been something that's been very frustrating for them. authorities here say that the dea was called in mostly to assist into the investigation of these suspects, that they are looking into their backgrounds and that sort of thing. so, that's really what's -- what's perhaps driving a lot of this. this family and especially this attorney, very sensitive to that

fact, that people are painting the billings family with this brush of dea involvement. and they feel that that's putting them in a bad light. >> all right, ed lavandera, we appreciate you keeping an eye on this sad situation. thank you very much. we take you back to the push for health care reform. and it's hit a pretty big snag. congressional number crunchers say none of the plans unveiled so far would reduce medical costs. they would actually increase government spending. we asked the communications director for the white house office of health reform about that. listen -- >> first of all, the president has made it very clear that health reform, which will lower costs for family and businesses, has got to be -- cannot add a penny to the deficit. it is going to be deficit neutral. that is absolutely a condition that he has put on any health care plan. >> all right, well, our senior medical correspondent, elizabeth cohen, is back for more with our health reform roundtable.

and coming to the table now, senior congressional correspondent, dana bash, coming to us from capitol hill. do they consider -- and talking to linda douglass a little earlier, she said no. but how big of a snag and a blow was it to hear from the cbo director saying this is going to cost money, not save money? >> reporter: well, it was a big snag, and i'll tell you why, because although linda douglass said that the president wants to it be deficit neutral, that is a different issue, i think, from what is causing such problems here with regard to what the cbo director said. because the biggest problem, the biggest bombshell that he dropped, really, was the idea that what the democrats are working on doesn't reach the goal that the president wants it to achieve, which is a really important thing here, and that is to use reform to bring down health care costs for americans. bring down those medical costs that are bankrupting so many americans. and what he basically said is the way the democrats are going right now, particularly on the house side, that's not going to happen. that's why that was such a big deal, and a big blow.

and although ubl apublicly nobo saying it's a big blow, privately they are admitting it, t.j. >> i want to bring in elizabeth cohen. so many issues and concerns. a lot of people are asking questions. one we're getting from mark here. this is a concern a lot of us have. he says, in this goes through, i as a small businessperson will be forced to lay people off. that's the bottom line. nice job, congressional dems and obama, you're really fighting for the small guy. you certainly sense the sarcasm there. >> oh, yes. >> but this is what we're hearing. >> i assume that what mark is referring to there are some plans to tell small businesses, look, you had better insure all of your people. and if you don't, then you will have to pay basically what amounts to a tax. and the house and the senate sort of do this in different ways. and so what i guess mark is saying is, look, i don't want to have to pay these taxes. if he doesn't insure his people. i assume he does that because he can't afford it. so, there definitely are

concerns for small businesses. they really feel like someone's got to pay for health care reform and it's kind of being done on their backs. that's what they feel. >> we were talking about who is going to pay for this, we had linda douglass on, as i mentioned, and she said, it took me a while to get the answer out from her, but talking about the plan out there. possibly the surtax, the 5.4% on people making over $350,000, she finally did say that the president thinks it's a good idea. and i quote -- all right, she finally said, "yes, it's a good idea." when is the president going to get more involved in this process and maybe start pushing some of his weight around, his popularity around and some of that political capital he still seems to have? >> reporter: t.j., it's so funny, because that's the very question that we are hearing from the president's fellow democrats here on capitol hill, when is the president going to start doing that. we certainly saw him doing it at the beginning of the week, just in terms of the process, saying, all right, guys, let's go. we need to do this and we need to do it fast. but in terms of the specifics,

it's interesting that you said that, because certainly it is the idea of that surtax is popular among some democrats, particularly in the house, but it is causing some problems among democrats. in fact, i just interviewed a conservative democrat, the sort of lead person from the so-called blue dogs, conservative democrat coalition, and he, you know, said point-blank he believes some of the president's fellow democrats could actually block this if they don't change things like the surtax in this bill, that they do believe, just like republicans, could hurt small businesses. >> all right. dana bash for us. and we have so much more to get to. elizabeth cohen, so much more to talk about. i'm glad we are able to talk about this here on this show. so, dana, we appreciate you. we'll continue to talk right here. tony harris will be back next week. and, again, all next week we'll be talking about health care, so we'll see plenty more of you when tony gets back. thank you both so much. the tear gas returns to the streets of iran. look at the scenes from the new pictures we are getting in.

well, the bank that's raising eyebrows on wall street again. this time for all the right reasons. and california in a state of disarray. budget talks going nowhere. all the details. back to our international desk which has turned in to our iran desk the past couple of

weeks since the election and the protests and the turmoil going on there. reza sayah is our point man on this. we're getting new stuff that we haven't seen for a while. >> the iran desk is working hard and so are our i-reporters. i want to show you some of the most important pictures coming in the past couple of hours. this is mehdi karroubi, the opposition leader, without his turbin. over the past couple of hours we've had a flood of reports from the ground that mehdi karroubi was attacked by members of the volunteer militia, the basij, at friday prayers. this picture appears to corroborate that. we certainly can't say defin tev tively he's beeni ing attacked , but his turbin is off and it could be that he is being attacked. another picture here showing what looks like someone with an injured head. we've had reports of people before the sermon and after the

sermon, clashing with security forces. these are all from i-reporters. we encourage anyone who has pictures to post them on i-report. also, lots of video coming in to the iran desk. this one, this gives you an idea of the crowd that's out there. estimated to be 10,000 people. and this is a chant, they are saying, "irannies are dying and the nation will not tolerate it." according to witnesses, tens of thousands of people showed up for friday prayers. again, some of them clashing with protesters. this video that we'll play shows security forces using what appears to be tear gas, and then you see the masses run away from the tear gas. if security forces weren't using tear gas at times. they were using those motorcycles and those batons and if we can run that video, we can show you what's become a familiar scene. here you see the protesters, many of them wearing green

wristbands and armbands, protesting. and now, in a few seconds, you're going to see security forces on motorcycles, wearing helmets, some of them carrying batons, going through that crowd. and then you see the crowd running away. all these people here to see ayatollah raf san swranny speak at friday prayers. he delivered some criticism to the iranian leadership saying the aftermath of the elections has left a bitter taste in the nation. here's what he had to say -- >> translator: doubt has been created in people's minds. we consider doubt to be the worst calamity. this doubt has attacked our nation like leprosy. there are two currents. one doesn't have any doubt and they are moving ahead with their job. and they are the wise people who say they have doubts. >> also appearing at friday prayers according to this picture, opposition leader, mir hossein mousavi. so, once again, rafsanjani, the

key figure in the opposition movement, lending his support to the opposition supporters, keeping the door open for this opposition movement to keep going. t.j.? >> all right, reza sayah for us at our iran desk. we appreciate you and all the editors and producers working over there. thank you so much. >> you're welcome. we'll now turn to sonia sotomayor after her nationally televised job interview, now she must wait to find out if she gets the job. let's bring in our brianna keilar, our congressional correspondent. brianne in, we've all been through this before. we go through a job interview and we wait to hear whether or not she got the job. how long will she have to wait? >> reporter: well, the first vote, the senate judiciary committee, will vote on tuesday, and then later there will be a vote before the full senate. that is expected to come, though, before congress takes a break for its august recess. what we've heard, t.j., from democrats and even some

republicans, they were impressed with her performance. she stayed cool and deliberate when she answered questions about same-sex marriage, abortion, and, importantly, the second amendment. gun rights dominated the discussion as sonia sotomayor spent her last day on the hot seat. >> my constituents in oklahoma understand, as do most of americans, that the right to own guns hangs in the balance. may very well hang in the balance with your asenn densesy. >> reporter: as republican senator tom coburn pressed her on the second amendment for the second day in a row, asking whether americans have a fundamental right to bear arms, she demurred. >> senator, would you want a judge, or a nominee, who came in here and said, i agree with you, this is unconstitutional? before i had a case before me, before i had both sides discussing the issue with me. i don't know that that's a

justice that i can be. >> reporter: fellow republican lindsey graham signaled he may vote to confirm sonia sotomayor. and hopes she will keep an open mind on gun rights. >> i think you are able after all these years of being a judge to embrace a right that you may not want for yourself, to allow others to do things that are not comfortable to you, but for the group they're necessary. >> reporter: but even he, once again, addressed her off-the-bench comments, including her wise latina remarks. >> and you said some things that just bug the hell out of me. >> i regret that i have offended some people. i believe that my life demonstrates that that was not my intent, to leave the impression that some have taken from my words. >> you know what, judge, i agree with you.

>> reporter: though not many republicans seem won over. >> you appear to be a different person, almost, in your speeches and in some of the comments that you've made. >> reporter: still, with sotomayor's confirmation almost certain, democrats were already looking ahead. >> experience and wisdom will benefit all americans. and when you walk onto the piece of vermont marble, into the door of the supreme court, speaking of equal justice under the law, i know that will guide you. judge sotomayor, thank you. godspeed. >> reporter: chairman patrick leahy is expecting to get some republican support in that committee vote on tuesday. and then with this expected full senate vote, t.j., before congress goes for its august recess, that would put sonia sotomayor on the supreme court with plenty of time to spare before the court's new session this fall. >> all right, brianna keilar for us. thank you so much today. well, part pep talk, part

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well, to celebrate its 100th year, the naacp welcomed the country's first black president to its convention. this happened last night. the president said to the crowd, of civil rights leaders from decades past made it possible for him to become the leader of the most powerful nation on earth. at times, as you can imagine, he brought the crowd to its feet. let's listen. >> congress, serving in places

where they might once have been able to vote but even take a sip of water. because ordinary people did such extraordinary things, because they made the civil rights movement their own, even though there may not be a plaque or their names might not be in the history books, because of their efforts, i made a little trip to springfield, illinois, a couple years ago. where lincoln once lived and race riots once waged and began the journey that led me to be here tonight as the 44th president of the united states of america. >> 100 years from now on the 200th anniversary of the naacp, let it be said that this generation did its part, that we, too, ran the race, full of faith, that our past has taught us full of the hope that the present has brought us, we faced

in our lives. and all across this nation, the rising sun of a new day begun. >> the president urged the group to expand its work in battling discrimination. and we have are just days away from cnn's in-depth look at being black in america. you can watch stories of people stepping up, taking charge, and creating solutions. the documentary "black in america 2" premiering next wednesday and thursday, 8:00 eastern right here on cnn. well, the last trading day of the huge week of gains on wall street. and though the upbeat corporate earnings reports continue to roll in, the market having trouble keeping up with the momentum. susan lisovicz here to explain why. susan, why? >> well, t.j., i mean, you know, earnings are of great interest to wall street always. and when it comes to big banks, especially because they'll tell us, among other things, whether the banks are making money. when you think all of the money we, taxpayers, have given to them, yeah, that's of interest to main street as well. and so what we've been hearing

early in the reporting season is overall pretty good. so, going into today, the dow rallied more than 560 points or nearly 7%. the nasdaq and the s&p 500, also up by that amount. it's not to paint a complete -- completely rosy picture here, t.j. i mean, there are warning signs in there, especially when it comes to consumer loans. bank of america today posting a quarterly profit of more than $3 billion, not bad for 3 months work. it beat wall street's consensus, the ceo of the company did warn of more weakness ahead for the global economy. b of a, remember, acquired countrywide financial, that's the housing market, and merrill lynch, think toxic assets. citigroup profits, meanwhile, topped $4 billion. also better than the street expected. here largely thanks to the bank sale of myth barney together. these two banks have seven-day forecast about $90 billion in t.a.r.p. loans from the government. bailouts, of course, controversial, but proving may

have helped to stabilize the banking industry, t.j., so important. >> we've been talking a lot about the banks and their earnings, and rightly so, but they're not the only ones reporting. how is everybody else doing? >> well, and that's important, too, because to get an overall picture of the economy, you want to hear from everyone. we've also heard from tech companies, also important to know whether consumers are buying things like computers. whether corporate america is upgrading things. we did get good numbers from ibm and google. google posted profits of nearly $1.5 billion. the company said it saw more clicks, it said people are spending less. ibm, meanwhile, raised its full-year outlook. its revenues were down, but the computer giant reported better-than-expected profits, thanks to cost cutting. that's another theme we're hearing on wall street, and a shift to its more profitable businesses. unfortunately, we're not seeing the positive mood midway through the session, the dow, the nasdaq, the s&p 500, all down. but just modestly so. one last thing, an interesting

quote from larry summers, the director of the president's national economic council, quote -- we were at the brink of catastrophe at the beginning of the year, but we have walked some substantial distance back from the abyss. let's keep -- let's keep hoping that we walk further back from the abyss, right, t.j.? >> from the brink of catastrophe, to now, what, we're now just on the edge? >> well, we're a little further out. >> all right. >> yeah, we want to keep removing ourselves from that brink. >> susan lisovicz, we appreciate. good to see you, as always. >> thank you, t.j. we'll turn to california next and the budget stalemate they've been dealing with for three weeks or so. now more and more people are desperate -- flat-out desperate -- for a solution. i think i'll go with the preferred package.

good choice. only meineke lets you choose the brake service that's right for you. and save 50% on pads and shoes. meineke. well, in california, lawmakers have yet to agree on how to close on $26 billion budget gap. so, as lawmakers keep talking, more people keep hurting, and there are more and more proposed cuts to government services. one prominent business group now is fed up and says it's time to start over. not start over with the budget process. start over, with a new state constitution. here now, cnn's dan simons. >> reporter: this is the man leading the effort for a new california constitution. >> you call a constitutional convention when the government is not performing its basic function. it's failing the people, and that's what's happening in california now. >> reporter: jim wunderman heads the bay area council, a group of

nearly 300 of some of the best-known companies here and in the u.s., including google, yahoo! chevron, the gap, at&t. >> we want to be a competitive region and a competitive state and we won't be if our government basically is in a complete state of dysfunction. >> reporter: the dysfunction has been most evident with sacramento's difficulties closing a $26 billion deficit. in part, because the constitution requires that two-thirds of lawmakers agree. a new constitution would make passage easier, with the proposed 55% majority. the call for drastic changes in state government has reached a fever pitch in recent days. protests seem to pop up almost daily. this one in san francisco made up of teachers, health care workers and the disabled. who say governor schwarzenegger's proposed cuts would hurt their lives. what would you say to the governor and to lawmakers who are considering making these cuts? >> i would tell them that they're making these cuts on the

backs and the backs of the consumer and the backs of the in-home care providers. we need this. >> reporter: brenda jackson is a state in-home care provider to the elderly and the disabled. she worries that her wage is already low at $11 an hour, could be cut. >> i won't be able to pay my rent. i can't -- you know, i pay rent, water, utilities, food, i mean, all the necessities of life i will need -- i will lose. >> reporter: for his part, schwarzenegger has been holding steady. unleashing a 60-second ad saying the cuts, while painful, are necessary. >> i'm standing firm for a balanced budget, and not raise your taxes. >> all right, let's bring in our dan simon here now. dan, this would leave a lot of folks scratching their head and saying it's a wacky idea. but this is a legitimate group, the bay area council, not just some wacky group yelling about a new constitution. what are the chances of something like this, a convention, actually happening? >> well, you're right, t.j.,

they bring a tremendous amount of credibility to the table. and according to the bay area council, they feel like because of the disgust right now in the electorate, they feel that they would get the votes at the ballot box. to get to it happen, first it would go to state voters to appear on the ballot perhaps as early as next year. then the convention would be made up of regular citizens, about 400 citizens of all different backgrounds and they would draft the constitution and it would go back to the voters. this hasn't happened since 1878, but they feel because of the climate now and the problems with the budget that they can get it done perhaps in total in three years. in terms of where we are right now with the budget. we were told that lawmakers and the governor were close to reaching a deal and things are stalled again. and apparently they are stalled when it comes to education funding. but bottom line is this, when it's all said and done, everybody seems to acknowledge that there will be deep cuts when it comes to education and social services, and a lot of people will be hurt by this, t.j. >> we haven't seen a

constitutional convention since 1878, and it comes now to this in california. dan, we appreciate you as always, thanks so much. got some more budget news coming up for you, but it's good budget news. limb: dude that was sick! i've been hangin' up there for, what, like, forty years? and then - wham - here i am smacking the pretty off that windshield of yours. oh, what you're looking for an apology? well, toss another coin in the wishing well, pal. it's not happenin'. limb: hey, what's up, donnie? how you been? anncr: accidents are bad. anncr:but geico's good ding! with onsite windshield replacement. not long ago, this man had limited mobility.

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and we want to continue to keep you updated about the breaking story we've been keeping an eye on. that double attack in indonesia. terrorists launched, that detonated bombs at the jw marriott and the ritz carlton hotel in jakarta. at least six people confirmed dead. two suicide bombers dead as well. another 50 people wounded, including 8 americans. investigators say the suicide bombers checked into the hotel as guests and smuggled explosives inside. the al qaeda militant group, jemaah islamiyah, is suspected. but so far no one has claimed responsibility. president obama condemning the attacks and offering help from the u.s. government. indonesia's deadliest terrorist attack was in 2002 on the island of bali. bomb blasts killed more than 200 people at nightclubs. and most of the victims were tourists. several members of the militant group, jemaah islamiyah, were later convicted for the attacks. then in 2003, the same al

qaeda-linked group launched a bomb at the jakarta marriott. and then in 2004 they struck the australian embassy and nine were killed there. and the following year suicide bombers struck in bali, this time killing 20 people. this weekend on "fareed zakaria gps" coalition efforts in afghanistan going on for close to eight years now. should they change course? should they end? fareed talked to two experts. >> andrew, you think the best thing to do, cut our losses, withdraw, and we'll be surprised at how -- how -- how little the instability, if there is any, in afghanistan, affects us, our core national security, correct? >> yeah, by and large. last week, "time" magazine, fareed, had a story about the new u.s. commander in kabul, and the headline on the cover was -- described him as the general who's remaking afghanistan. i simply believe that remaking

afghanistan is something that we're not capable of doing. that we can't afford to attempt to do, and, frankly, is unnecessary, and so we need to -- to examine strategic alternatives rather than simply continuing down this path that we've been on for almost eight years. >> i think we need to be there. we node to make it stable. we need to step up to our moral responsibilities to the afghan people, but i would agree with the professor that we need to do that in the cheapest way possible. and we need to make sure that we don't overcommit and we don't set ourselves up in an unsustainable effort. >> you can see the rest of that interview on "fareed zakaria gps" at 1:00 p.m. eastern, 10:00 a.m. pacific on cnn. all right, exactly one year ago today, you were paying the highest price for gasoline ever recorded.

so, how much have prices come down since then? will they continue to head lower? alison kosik has our "energy fix" from new york. allison, nobody, every time you go fill up, you think gas prices are too high. but, still, we have to put it in perspective from what we saw last year. >> a lot of perspective. last year, the nationwide average for a gallon of gas hit $4.11. that's the highest price ever. today aaa says the average price is $2.48, a drom from the all-time record. so, how much more money is that in your pocket? we did some calculations. assuming you drive 13,000 a year and get 23 miles per gallon, the difference translates into savings of more than $900 a year. not too shabby. >> that's huge thinking that could you save $1,000 per year. that's significant. when you talk about how much it's dropped, will we continue to see them drop and maybe save

you more money? >> it's funny you asked that, because analysts we talked to expect gas prices to fall a bit more. they could dip below $2 in some markets, but they don't expect to see last year's lows when gas was $1.60, $1.70 a gallon. this year the summer average got $2.29, but more americans stayed home during the traditional driving season. prices have fallen for the past 26 straight days and we could see prices slip even more if oil continues to decline. crude hit an eight-month high of more than $73 a barrel. that was on june 30th. but it's come down more than $10 a barrel since then, but, you know, let's not forget, it is hurricane season. there are a lot of gasoline refineries along the gulf of mexico. so, if a big storm threatens like hurricane ike last year, gas prices could spike again. but i tell you what, no one sees it even getting close to the record high that caused so much pain that we remember well, right, t.j. >> we do remember it well.

allison, it's been an absolute treat to talk to you. talking about the economy and our budgets. thank you very much. >> sure. looking out the road, in michigan, all you have to do is literally follow the signs. also, who's going to be signing the pope's cast? yep, he has to sport one. we'll tell you about the spill that sent the pontiff to the hospital. devotion to family.my people notice my love for animals. my smile. my passion for teaching. my cool car. people notice i'm a good friend and a good listener. people notice that i'm a good boss. people notice my love of nature. people notice i can fix anything. (announcer) thanks to miracle-ear what people don't notice about you is your hearing aid because, look closely, our hearing aids are nearly invisible. our exclusive line of open fit products are so lightweight, so small and so natural sounding even you won't know you're wearing one. you know, most people don't know how good or bad their hearing is... they just know when they're missing things

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all right. he's got the white robe and he's got a white cast. check it out there, the pope with the matching cast on the -- let's see, the right -- which hand is it? there it is. you can see it there a little bit. the 82-year-old pope broke his right wrist in a fall this morning while on vacation in the italian alps. doctors say it's a small fracture. he was treated at the hospital and released. ♪ well, family and health are what we're talking about this week in our "what matters" segment in partnership with

"essence" magazine. in a week dominated by sotomayor's hearings, president obama nominated another woman for the top woman, regina benjamin, who has been tapped to be the next u.s. surgeon general. she started a family clinic on the gulf coast of alabama. she said her own family's histories had made quality health care a personal mission. >> my father died with diabetes and hypertension. my older brother and only sibling died at age 44 of hiv-related illness. my mother died of lung cancer, because as a young girl she wanted to smoke just like her twin brother could. i can't -- or i cannot -- change my family's past. i can be a voice in the movement to improve our nation's health care. >> well, if confirmed by the senate, benjamin will be the fourth woman to serve as surgeon general. also a growing number of

single black women are choosing to adopt children. adoption agencies say the rising numbers can be attributed to infertility and many black women not getting married. 45% of african-american women have never tied the knot. that's compared two 23% of white women. go to cnn.com or essence.com to read personal stories to find stories why many single black children are choosing to adopt on their own. many low-income families are finding green in a development in the bronx that's both socially and environmentally responsible. fredricka whitfield, take a look. >> reporter: a few more steps and christine prince and her daughter will be home. it's a new life, far away from the misery of a temporary shelter. >> we cahad more than 300 mice. we was living literally in fear. you have new home work? >> reporter: a new address. and a fresh start for this family. >> it's like i won the lotto.

i was so overjoyed, because i know my children will finally have a place to call home. >> reporter: last march, they were among the first residents of interveil