sometimes follows the warriors home. pushing forward on troubled troops and violent crimes and addictions all tied to one unit at one shell shocked base. you haven't heard the last of the controversial arrest of a harvard professor and friend of president obama, the city of cambridge pushing the issue forward, the 911 tape speaks for itself. gentleman, ladies, start your engines, if you can, if you can't, push the clunkers into washington, make it worth your while. maybe. hello, i'm kyra phillips, you're live in the cnn newsroom. >> collateral damage is the military term for injures, death

destruction that happen accidentally in war. its toll in iraq might never be fully known. today we're learning more about the devastating toll on some u.s. soldiers whose traumas in the field multifly when they get home. we're looking at the changing mission from combat too advisory, iraqis are calling the shots and americans are adjusting. our soldiers are trained to protect and fight on the battle field and take out the enemy. they come back with war stories, but you don't expect them to tell this kind of story, the one that former army specialist kenth eastrich told to the reporter of the gazette of colorado springs. >> had no place to go. i was homeless. i tried to get a job, unsuccessful unsuccessfully, i don't have any job skills. i just got kicked out of the army. so i don't know what to do. so i said i'm going to commit some robberies and get enough

money to get on my feet. i always said no violence, i'm not going to hurt nobody. >> unfortunately somebody did get hurt. eastrich is serving ten years for accessory to murder after his comrade was shot to death and plans of a rampage were revealed. what does he say triggered all of this? his duty in iraq. some soldiers from fort carsons, 4th brigade combat team have been linked to beatings, rape, drug deals and kidnappings and murders. reporter spent months interviewing soldiers and family and scouring military and medical documents. joins me live with the jaw-dropping series. the war in iraq a lot different, tougher and more dangerous for u.s. troops than it was a month ago. the iraqi forces are now calling

the shots, for americans used to being in charge, the change creates a lot of issue. arwa damon has been talking with both sides. let's begin. tell us about the friction points and misunderstanding you have seen take place. >> reporter: well, you know, this whole changing roles is being governed by the security agreement that was signed by both countries on june 30th, saw the u.s. military complete the withdrawal of combat forces from iraqi cities and towns but we have u.s. units in lesser numbers and being called advisory units. very heavy duty advisory units for that matter. the problem is that you have this convoluted document that is difficult to navigate. the americans look at it and interpret it one way and the iraqis interpret it in a different way. that has been the source of some friction where the iraqis have literally turned around some

u.s. patrols who also have the issue that you were just mentioning there, that the u.s. military isn't really used to taking this complete and total back seat role. yes, in the past we have seen them in these advisory positions, we have heard terminologies such as the iraqis are in the lead, at the end of the day the americans have the final world word. they don't have it any more. and sometimes it works and sometimes it doesn't. that's very difficult for these soldiers that are out there on the ground every day. sometimes they have to sit back and accept that the iraqi way is not necessarily their way. and then on the issue of security you just mentioned. this is in many ways a big leap of faith for troops out there because it wasn't just about handing over security to the iraqis. it was also about putting trust in their capability. the u.s. still does maintain the capacity to protect itself. at the end of the day it's the iraqis that are out there every single moment.

it's there responsibility right now. >> knows iraqi that's were trained by u.s. troops and u.s. ways of fighting an enemy, what type of help or support do the iraqis usually ask for when they see that they are in trouble or need support? >> well, you know, the unit that we were with actually was very rarely being asked for boots on the ground support as an extra u.s. soldier to go on the missions. a lot of times the iraqi would ask for eyes in the sky. to give you an example, while we were there, the american commander had put together an entire intelligence brief on a target that the americans wanted to go after. he handed over the full brief to the iraqi kpounter part and asked him if he wanted u.s. soldiers on this mission. the iraqi commander said, no thanks, but i will take your air support. the americans do have to take the complete backseat role and do admit this is an entirely

different shift in mind set. they are used to being out there and fighting the battle in the max. now they are in the advisory role. both sides are saying, it had to happen sometime, so it might as well be happening while we have american boots on the ground that can step in at me moment. >> after a week of sound bytes, finally the tale of the tapes. the cambridge, massachusetts police releasing 911 and radio calls from the controversial arrest of harvard professor henry gates jr., the arresting officer and the professor's camp each have said the tape will back his version of how things went down. let's get straight to elaine at the boston bureau with more. >> just got back from the cambridge police department where they did in fact release those tapes you mentioned. we'll play a little bit here. i want to set it up. what you're about to hear 1:45

into the 911 call to the emergency dispatcher. let's listen up now. >> i don't know if they live there and just had a hard time, but i did notice they kind of used their shoulder to barge in and they got in. i don't know if they had a key or not, couldn't see from my angle -- >> are they still in the house? >> they are still in the house, i believe, yeah. >> white, black or hispanic? >> two larger men, one looked kind of hispanic but i'm not sure. and the other one epterred, i didn't see what he looked like at all. this older woman was -- >> so why is all of that significant? >> well, the attorney for that woman, says she's been personally devastated by characterization that's have been out there that her client is somehow racist because she

called in a report of two black men breaking into a house. now obviously with the tapes out there, we'll continue to listen to them. this just happened a short time ago. this is something that she hopes will help clear the air a little bixt police, for their part are saying, these tapes speak for themselves. we're not just talking about the 911 call kyra but the radio transmissions as well. we'll bring you more as we have it. >> we'll look forward to hearing more from the 911 tapes and also the police radio chat as well. probably, elaine, will help put some of the i guess uncertain pieces together for us as we continue to follow the story. >> a cemetery, is this the new stomping ground for crooks looking to make an easy buck? >> it's a question big enough for congress to hold hearings. two cemeteries spotlighting the

problem. in the last few days, a human bone was found on the ground. a family has filed a lawsuit and claimed someone took a head stone from a relative's grave and tried to sell it. in illinois, four ex-employees, are accused of digging up hundreds of graves dumping the remains and reselling the plot. relatives of people bury there had are expected to testify at today's hearing. the army said he was awol, pretty neat trick for a civilian, yes? d. announceit keeps my airways. help bhe b all da. d i't a st annoceit keeps my airways open.. all da. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me bays open... to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long.

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at legalzoom.com we put the law on your side. installing a tv camera at 17,000 miles an hour, don't try this if you're at home. you're looking at live pictures as "endeavour's" crew makes a fifth spacewalk. 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, the volume is a little lower in the health care debate. we haven't heard the president

hold another live news conference today either. along with expectations for some ort of break through before lawmakers go home for the month of august. brianna, there was a big setback over the weekend. tell us about that and how health care negotiations are going in the house so far today? >> reporter: well as we left you last week, there was all of this democratic infighting going on in one of rare bright spots was the democrats managed on one of the ideas on how to save money in the health care discussion. over the weekend the nonpartisan congressional budget office said this one particular idea for saving money actually saved hardly any money, $2 billion over the course of ten years. compare that to the $1 trillion price tag that health care reform is expected to cost and it really is not that much money. meantime, the rif we were talking about between house democratic leaders and key

democrats on key committees here continuing with these fiscally conservative democrats the whether dog. they are expected to meet later today. but at this point they haven't made any progress. listen so what nancy pelosi said, she sounds optimistic about getting a vote on the house floor. >> it's a question of the american people who have been waiting a very long time for health insurance that gives them confidence that if they have a preexisting condition or if they lose their job or change their job or start a business, that they will have health insurance. i take this bill to the floor, it will win. but we will move forward. this will happen. >> no one here, no one really saying at this point there's no sort of headline come from house democrats that this is not going to come to a vote before the

full house before the house leaves for august recess. but we're getting more and more signs that it's looking really difficult. one house democratic leadership aidesaying even in best case scenario it would be difficult to do something this week. >> what about in the senate? >> reporter: that's a foregone conclusion as far as them getting a vote before the full senate, not going to happen before they leave for the august recess. the key there though is how much incremental progress can they make moving towards some sort of agreement in the key committee that's talking about health care, the senate finance committee. you can see the key bipartisan members meeting from last week on the right side of the screen. and we're hearing it can be difficult for them to come to an agreement. we don't know exactly if they will or won't. but we know it's going to be a heavy lift to do before the august recess. >> thanks so much.

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thunderstorms, hail, damaging winds and elsewhere lots of eat. sounds like a good day with the ac and watch chad myers for the day. >> even water spouts this morning. just had the last one we had reported to the west of newport richie, this is tampa bay, storms are coming onshore from everywhere. offshore rolling on and a couple of them are bringing a rotation. we'll have to watch that as the day goes on. dallas back out to new york, we'll zoom in a couple of things. we'll zoom into denver and even in oklahoma city, you'll see showers and thunderstorms throughout the day. slowing down the airport at dallas by about an hour right now. not every flight being canceled but you probably wont get out of

dallas on time. severe thunderstorm watch box from raleigh up to hampton roads, you're on the gun for potential for a storm with wind damage or hail. no rerotation right now but none of those are out of the question when you get a thunderstorm close to you. new york city, thunder and lightning to the west of you. showers along two fronts, one to the south and one to the north. i don't expect we'll see too many tornadoes it's. not the ones you really are most concerned with where you have to be underground, maybe something with roof damage. we've been watching nasa tv all day. they were on the last mission, a couple rewiring things, we do believe that all of the guys and ladies are back on the shuttle. they were moving things around

and using screwdrivers and tools and the like and they are ready to get back in and on the ground. they will be landing friday if weather goes well in florida. they've had their troubles but they got it all done. one of those days, that wasn't the easiest thing but i'm done. >> especially up in space. that makes it a little more difficult. >> can't call for help and have somebody deliver a pizza. >> exactly. >> otis, cue the music. ♪ i'm in a new york state of mind ♪ >> if you've never been to new york city or even if you've been 100 times, you should check out a free program the city has got going on. like a matchmaking service, matching tourist with genuine new yorkers. well, let you see the big apple like the locals see it and your match might be a star.

>> reporter: would you want a tour of new york from this guy. you would if he did this -- ♪ >> reporter: this is bronx born and bred dominic key nascy, known as uncle jr. on the hit "the sopranos." now he's a tour guide. the newest member of the big apple greeter program, a non-profit group that pairs new yorkers with visitors and show people like nancy and daughter katie sex ton from south carolina, a side of the big apple many never see or taste. they start the day on the subway. final stop -- the little italy of the bronx where he was born. >> this is the neighborhood

right here. >> reporter: spend a few minutes walking around town with the actor and you'll find -- >> good to see you. >> reporter: he's treated like the mayor and he knows his food. >> pizza. delicious. really nice. it's an old italian expression. >> reporter: he shows the sextons the new york way to eat pizza. fold the slices in half. >> reporter: a real treat. >> thanks for coming by. >> i can't tell how much it meant to us to be here with him and see the community and appreciate it for what it is. >> reporter: the tour ends with a walk around the old neighborhood. >> i was born in this building 1931. >> reporter: a stroll through arthur avenue market where they sample aged parmesan cheese and get a treat of a lifetime. ♪

>> once again that was alina cho. the army doesn't lease desserters and he learn they learned the hard way he isn't one. the mix-up straight ahead. i think i'll go with the preferred package.

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and save 50% on pads and shoes. meineke. a plan designed to improve america's fuel efficiency and could help the motor city. will cash for clunkers get the gas guzzlers off the road? you've probably seen the tv ads, the program which kicks off today offers up to $4500 in credit toward a new fuel efficient car or truck. but which types of vehicles can you trade in? let's bring in our football he had -- financial editor, gerri willis. a lot of the older cars are too fuel efficient like the 1984 ford tempo and 90s models of honda accords and camries. let's get people up to speed on what they'll need in order to

qualify. >> not everybody is going to qualify for this, obviously. the program really started on july 1st, but many auto dealers have been reluckant until they understood the requirements. new rules were publish ee eed detailers how they can get the checks. car allowance rebate system goes from july 1st, a couple of weeks ago to november 1st 2009 or until the money runs out. anybody who might have already traded in the clunker, they are still eligible. >> we should add, you don't get the $4500 until the paperwork clears, that could take a couple of weeks. >> you don't get it in your hands, it goes right to the dealer. >> all right. that definitely changes things around a little bit. if a car meets the requirements in addition to that, what else should people arm themselves with before heading into the dealership? >> let's go over the things you need to qualify.

must be less than 25 years old on the trade-in day. 18 miles per gallon or less and must be registered or insured for at least a year, new car needs to get 22 miles an gallon. it could be $3500, all based on how many more miles per gallon could you get. you could get more since the program requires the scrapping of the trade-in. dealer has to disclose what they'll get for the scrap value. you get anything over and above $50. this is in addition to the rebate not in place of it. dial the hot line, 1-866-car, 7891 or go to cars.gov. >> for the first time in two and a half years, the best known alaska politician maybe ever is a private citizen with more than a year to go in her first term as governor, sarah palin turned the job over to lieutenant governor sean parnell.

she said she had no interest in hanging around as a lame duck. 2008 nominee for vice president called her governor stint a success, doesn't need to title to speak out and also singled out the media for a parting shot. >> you represent what could and should be a respected honest profession that could and should be a corner stone of our democracy, democracy depends on you. and that is why our troops are willing to die for you. so how about in honor of the american soldier, you quit making things up? >> palin leaves office with a pile of legal bills arise from ethics complaints, she isn't saying what she plans to do next. we think we know what's next for judge sonia sotomayor, the

senate panel is due to vote tomorrow. we'll set the stage with candy crowley right here in the cnn newsroom. bizarre end to what had been a nice vacation, a seattle man arrest and jailed at fort knox because the army had him listed as a deserter, which is interesting because he is a sill yan. spent two weeks behind bars. how could this happen? possibly a snafu ten years ago when he almost enlisted but backed out? >> how paperwork could have gotten messed up enough to say that i was actually in the military and made it there and it says i was in there for two years before they finally figured out i wasn't and started counting me as a deserter. >> so far he has no real explanation from the military. any updates we'll let you know. an american who joined al qaeda and plolted to kill president bush has gotten a life

prison sentence. his sentence is actually a do-over. he was convicted in the federal court in virginia back in 2005 but last years an appeals court ordered him to be resentenced arguing his 30-year sentence was too lenient. a rare claim of victory against the taliban in afghanistan. that's the word from the british military about the operation panthers claw. the goal, drive out the taliban ahead of next month's presidential election. mission accomplished but at a cost. nine british soldiers were killed and the taliban suffered significant casualties, no specific numbers given but the british commander in charge admits many taliban pulled out before the troops arrive and likely will return. body count is a controversial measure of progress but no longer in the afghan war. the u.s. military will stop publishing the number of taliban and insurgents killed. part of a new strategy focusing on protecting afghan citizens,

indicating the number of insurgents killed has little relevance to the lives of afghans. soldiers from fort carson, colorado are serving right now in afghanistan. many of those soldiers have served multiple tours in iraq as well. they come back with war stories but you don't expect them to tell this kind of story. one former army specialist kenneth eastridge told from a colorado jail cell. >> i was totally out of money and had no place to go. i tried to get a job unsuccessfully and really i don't have job skills. i got felony one. i don't know what to do. i said i'm going to commit some robberies and get enough money to get on my feet. i saulz said no violence, not going to hurt nobody. >> unfortunately somebody did get hurt. he is serving ten years for accessory to murder after his

comrade was shot to death and plans of an armed robbery rampage were reveal. he his it was triggered by his duty in iraq. spent months interviewing soldiers and families and scouring military documents, wrote a jaw-dropping series. good to see, you dave. >> hi. >> let's put in reperspective, eastridge was one of 3,500 soldiers in the unit, 4th brigade combat team. tell me what these guys dealt with and saw that other soldiers don't deal with on a regular basis. what made this so extreme for them. >> well, theetz guy of the bad luck to be in the worst place in iraq for both deployments, therapeutic in ramadi, then in baghdad in 2006, 2007.

they just took tremendous casualties. they make up almost half of the casualties for the entire base of fort carson. >> you look since 2005, the soldiers have come back and been involved in brawls, beating, rapes, duis, shootings, stabbings, kidnapping, suicide. you talk about this in the first report i read that was 23 pages long. for someone like eastridge and we've heard from interview there in the jail cell, did he fail the army or did the army fail him as you investigated what he went through, his background and where he is now? >> well, it's certainly not black and white. each one of these soldier's stories is different. kenneth eastridge joined at 19. during the first deployment he got medals for good conduct and achievement and had no discipline problems. after his first deployment, he

started showing sort of the text book symptoms of post-traumatic stress disorder, which include diso paying orders and abusing alcohol and picked up a felony charge for pointing a gun at his girlfriend's face. now, where i think the army may have failed him, army rules say anyone with a civilian pending felony charge can no go back to iraq. he had the charge for pointing the gun at his girlfriend and they sent him back again to baghdad. after the second tour is when he was arrested for murder. >> that's what's just so mind boggling. there were these signs and wasn't like it just happened and folks reacted within the base. then you write about anthony march quez, the first in this brigade to kill someone after the iraq tour. he used a stun gun in a marijuana sale and shot the drug

dealer. he came forward to his sergeant and said, i'm worried about my son, showing signs of violent behavior, abusing alcohol, pain pills and carrying a gun. said he's a walking time bomb. then apparently his sergeant took the phone call and tormented mar quez. this is something you would think in any normal situation, you have to get him help. >> he joined at 19 and shot and wounded in iraq. he was actually personally awarded his purple heart medal by president bush. then he came home and also started showing signs of ptsd. he started abusing his pain pills for his war wounds in order to treat his ptsd symptoms, he was drinking too much, violent, nightmares. his mother called the sergeant, saying, this kid needs counseling and unfortunately the

army still doesn't have a policy that would require that. so they said, look, s there's nothing we can do. eight months after she called is when he tortured and shot this drug dealer in colorado springs. >> and you write and put it into perspective here in your article, did the infantry turn some men into killers or did killers seek out the infantry, did the army let in criminals or did fort carson fail to take care of soldiers or did soldiers fail to take advantage of care offered? it looked like time after time that members of the army there, didn't encourage counseling or made fun of individuals that were suffering from depression or from ptsd. and there was this stigma that reigned on this base. >> absolutely. fort carson's commanding general

release a report where he looked at these very questions and says there is a culture and stigma against seeking help for mental health care that needs to change. but he also said that that's going to be very difficult and with a lot of these soldiers, the warning signs are obvious to us now but when you're dealing with thousands of soldiers while at the same time trying to fight two wars, he said it's very difficult to spot and he's not sure whether it will happen again or not. >> you also point out too all of changes that were made by major general mark graham, including when soldiers visited a army doctor, they can't leave without a mental health evaluation. we will push forward and talk about the changes that have been made. dave phillips, great job. we appreciate you talking to me. let's follow up on this unit. they are in afghanistan now, want to see if the changes taking place will impact those guys when they get home. let's follow up, sound good?

>> right, sounds good. >> great work. like i said we'll push forward, david perkins is replacing major general mark graham who's going to be moving on to a promotion. now the new man in charge will join us live in a few minutes to talk about his plans to deal with the problem of returning soldiers and violence on the home front. may not have been out on the top step of the podium, but it's still another victory for lance armstrong. sanjay gupta has an exclusive interview.

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centers for disease control and prevention taking on a hefty issue, its conference in washington is looking at the weight of the nation and on its heels, a new study with a blunt message. researchers say it cost more -- some $1400 a year more actually to treat obese patients than normal weight ones. in fact obesity rates rose 37% between 1998 and 2006, about 1 in 3 americans is obese now. higher costs treating problems like diabetes and heart disease and arthritis. obesity related spending now accounts for $147 billion double what it was just ten years ago.

lance armstrong used to be standing on the top step of the winner's platform. standing on the lower one yesterday for his third place win might seem a little humbling, but considering the 38-year-old did it, just months after coming out of retirement, he has no reason to hang his head. his teammate came in first. armstrong talked exclusively with dr. sanjay gupta after taking the podium. >> to say it's been a remarkable 22 days for lance armstrong here in france. fans, cancer survivors all over the world cheering on the seven-time tour de france winner. after a four year hiatus it was a big decision for him. i caught up with him hours after he took third place to talk about the challenges and some of the criticism that's have been waged against him and how he responds to those and ask him

why he decided to get involved in all of this again. >> coming in first, is that something you thought about, did you care? you write it's not about the bike, do you care if you come in first or not? >> i wanted to come in first. but sometimes in sports there's somebody that's better. and i was that guy for seven years. and i never understood what it felt like to get second or third. i'm 38 now and you race guys that are 24, 25, 26, they are fast and strong. they have acceleration. they have all of the things that you had at that age. and you get third. that's what's the great thing about the tour. the best man always wins. >> how is this race different for you in terms of how you trained? were there differences from five years ago? >> used a lot of the same training and same idea with diet. the only difference i guess is

that i'm now 38 years old. so a 38-year-old man does not wake up every day like a 28-year-old. but i can't complain. i think i rode well. >> why come back after four years? >> i have to have a love for the bike and tour, otherwise it's too hard. it's way too hard to go out and do this. but my passion for fighting cancer and not just in texas or in the united states but around the world. >> when you look at you the man, lance, and the issue of can cancer, do people separate that? >> i think so. these days it's easy to get feedback. when people have a comment or issue, they let you know. and most of them are regarding cancer. that tells me that the people understand, they've been

affected, either themselves with loved ones and they understand it and say keep going. pedal hard for them tomorrow. pedal hard for my mom or neighbor or co-worker. >> you talk a lot about during the tour about the surprise steps. >> there are no surprises any more. >> over 40 tests. >> there are 50 now. >> what do you say to the critics and skeptics now. >> look, i've done this a long time been at the highest level since 1992 until 2009, i've been tested more than anybody else. if i can take four years off and come back at 38 with more control than anybody else on the planet earth and get third in the hardest sporting event in the world, i think we've answered the question. >> a couple of things worth pointing out. lance's heart and lungs are different. he pumps about 90 gallons per minute as opposed to 5 gallons. with every breath he takes, he

gets about twice as much oxygen as normal which could be advantageous when racing in a competition like this. i asked him what's next? going to dublin at the end of august for a global cancer summit to continue discussion on the issues he talked about with me today. >> back to you. >> my guess is sanjay will be going to dublin as well. we'll be right back straight ahead.

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♪ >> those days are so over, people. just get that old stereotype out of your head, would you? a smiling, happy family no more. bitter tug-of-war being played out on two continents and in the middle, a little boy. ays open.. help meather all day it'not a oid. unceit ky airways op to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breatee my ai.to. and s ster annoeeps men... etter all day long. and it's not a st annoeeps men... unceit ky airwen... all day long. elp mehe betall da d it't a sterd. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways.

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a tug-of-war that's a parent's worst nightmare. fighting a spouse over custody of a child. but it does happen, as we've seen in one celebrated case involving one parent in new jersey and the other in brazil. here's deborah feyerick. >> reporter: this boils down to something very basic. if you are unhappily married, how far would you go to keep your child? would you break the law, kidnap your kid, hoping to gain custody in another state, another country? it's a desperate, terrible choice but one thousands of parents have made, defying court

rulings again and again. at the age of 35, bruna had everything she dreamed of. living in brazil with her american-born son, happily remarried, a baby on the way, her own business. it was almost perfect. >> she was really, really brave to come here. she wanted her life back. >> reporter: but it came with a price. bruna gambled she would be able to keep her son in brazil and work out custody with her first husband in new jersey, david goldman. no one except bruna knows the exact moment she decided to stay here in brazil but it's at this point that the stories of husband and wife take sharply different turns. david went to court in new jersey. bruna in secret went to court in brazil, an attempt to beat the system. each got custody. but under the terms of the hague convention, it was ordered that he immediately be brought home. >> in all likelihood she took this particular step of

kidnapping the child. >> reporter: goldman says bruna warned him not to go to police, threatening -- >> i would never see my son again. >> reporter: her mother and brother say not true. was she threatening him? don't come, you'll never see your son? >> she asked him to come many, many times. >> reporter: goldman's attorney calls the invitation a bold-faced lie. meanwhile, years passed. sean was living in rio, learning portuguese and making friends. then tragically last august, his mom died hours after giving birth to a daughter. again, sean's world was about to change. a brazilian high court judge ordered sean's immediate return to goldman, concluding bruna's family had alienated the child from his real dad. sean's stepdad is making a legal claim for sean to stay in brazil, where he's lived half his life. >> i'm pleased with this decision today. >> reporter: why as a stepfather you're fighting for custody of another man's biological child?

>> i was 60% of sean's life together with him. i have given him love, care, protection. supported him financially. >> to allow a man with no blood relations to keep another parent's child is against their own laws. >> reporter: so why is sean now 9, still in brazil? >> he always asks me mom, if some day, something will happen to me, please, sean is your son, promise that you are going to stay with him. >> reporter: bruna's family, still grieving her death, is determined to fight on. >> can you imagine now you have to live in america with someone you don't know but is your biological father, and you do not remember? i mean, he doesn't want to go. he's so sad.

>> reporter: while the hague convention does consider the best interests of the child and length of time living in a different country, experts say it's a flawed argument because it rewards the initial act of kidnapping. kyra? >> thanks so much. we're pushing forward now to a pivotal day in american justice. tomorrow, the senate judiciary committee due to pass judgment on sonia sotomayor. president obama's choice to replace david souter on the u.s. supreme court. the outcome isn't in doubt but the party breakdown is. at least three of sotomayor's toughest republican questioners are saying that they'll vote against her. some other republicans plan to join most, if not all, democrats in supporting sotomayor. so it's just a matter of time before she joins the high court. the white house wants her in place by the start of the new term in october. in the meantime, candy crowley joins me to handicap the voting. first off, you have orrin hatch, jeff sessions, still saying

nope, going to vote against her. what's their beef? >> reporter: they believe from her writings and some of her court decisions that she has taken race and gender into account when she made rulings, and when she made these statements and we all remember the wise latina remark. so they believe that's activist judicial activity and they believe that that's how she would act on the court so they're going to vote against her knowing full well, of course, that she will be confirmed. >> so bottom line, just because they vote against her, is it just to make a statement? because it's not going to blow her out of the running. >> reporter: no, but remember, these are people who believe what they're saying, who say listen, she's just an activist judge and i can't go for this, and you do make a point and you make points back home in saying look, this doesn't reflect my state, if that's how they feel. certainly orrin hatch doesn't have much to worry about in utah. he keeps getting re-elected.

john cornyn just got re-elected, he's from texas. about a third of the population there is hispanic but he says, and he's a former judge himself, says listen, this is just not the kind of judge that i want to put on the bench. and you have this split between republicans, really. you have someone like lindsey graham who has said i'm going to go ahead and vote for her. he believes that if the person is qualified, the president ought to get the nominee he wants because that famous saying, elections have consequences. there are others who believe that if you think this is an activist judge or this is a judge that has ruled too liberally for your tastes, that you ought to go ahead and vote against her. so you will see a split among republicans. i think the only mystery left to all of this is how many republicans will end up voting for her. we do know of five, not all of them in the committee, obviously, but we do know of five republicans who have said they are going to vote for her. you add that to the 60 senators who caucused with the democrats,

you've got 65 already. so what we're looking for is whether or not she runs up that republican vote. >> so how soon for the senate floor vote? what do you think? >> reporter: next week. >> next week. i think you'll see a couple days, maybe three days, perhaps pushing into four, depending on how long republicans want to talk and put their statements out there and on to the record, but you will, barring something unexpected, you will get her nomination on the senate floor and probably by late week, she will be confirmed. >> we'll talk again then. hopefully more, though. i don't want to wait a week to see you again. >> reporter: it's a deal. me, neither. >> candy crowley, thanks so much. well, now the battle over health care. key democrat senator says reform can't be done without some republican support, but the speaker of the house says she'll have the votes to get a bill passed this year. in an interview with cnn's john king, nancy pelosi brushed aside republican complaints that the white house and its allies are moving too fast. >> it's not a question of rush.

it's a question of the american people who have been waiting a very long time for health insurance that gives them confidence that if they have a pre-existing condition or if they lose their job or change their job or start a business, that they will have health insurance. i take this bill to the floor, it will win. but we will move forward. this will happen. >> all right. cnn's brianna keilar is on the hill, so when will the house vote on health care? >> reporter: that is the question, kyra. you heard speaker pelosi say she's confident it will pass the house but exactly when, we just don't know at this point and the question is, is it going to pass before the house leaves for recess at the end of the week. well, at this point, we're hearing a lowering of the bar from a lot of democrats here on capitol hill. democratic aides telling us that one of the real goals is just to get health care reform through the last of three house committees that it needs to pass through before it can go to a

full vote on the house floor. that committee is the energy and commerce committee, and it is in this committee where we saw the big hang-up on friday. democrats versus democrats, really fiscally conservative blue dog democrats who just are not on board yet. well guess what, they are still not on board. they still have major points of contention with the democratic health care reform proposal that's being pushed through congress, so there's a meeting that's going to be going on here later today between the chairman of that committee, henry waxman, and the blue dogs led by mike roth of arkansas. so the goal now it seems is to get it through this committee and whether there's going to be a vote on the house floor, it is by no means definite. there's a lot of work to get done just to get it through this committee. >> how about senate action? >> reporter: we know that there's not going to be a vote before the full senate so the goal now there is to see what the senate finance committee is doing. we've been watching them now for weeks, it seems, just staking

outside of the rooms they have been meeting in, these key members, democrats and republicans, six of them in particular. so they're trying to come to an agreement but they just won't be pinned down as to whether they're going to come to an agreement and whether they're going to vote on it before they leave for recess a week after the house does here in a couple of weeks. one aide telling me we'll get there, but not being pinned down on when. >> that's always the big question, when. thanks. the united states and china with the world mired in recession, it could be the most important relationship on the planet. now the two are getting together to try to find a solution. obviously no easy task. president obama kicking off a two-day meeting in washington, is thinking only in terms of making progress. >> my confidence is rooted in the fact that the united states and china share mutual interests. if we advance those interests through cooperation, our people will benefit and the world will be better off. because our ability to partner with each other is a

prerequisite for progress on many of the most pressing global challenges. >> other related sensitive issues on the table, climate change, human rights, nuclear proliferation and also terrorism. well, our soldiers are trained to protect, to fight on the battlefield and take out the enemy. when they come home, adjusting can be tough and at fort carson, colorado, soldiers from the fourth infantry division have been linked to beatings, rapes, duis, drug deals, kidnapping and murders. dave phillips from the gazette of colorado springs actually spent months interviewing soldiers and family members about the violence. i had a chance to speak with him just a few minutes ago about the case of kenneth eastridge, a former soldier now serving ten years in prison for his part in the murder of a fellow soldier. >> one of these soldier stories is different, but he joined the army at 19. during his first deployment, he got medals for good conduct and

achievement, and had no discipline problems. after his first deployment, he started showing sort of the textbook symptoms of post-traumatic stress disorder, which include disobeying orders, abusing alcohol. he also picked up a felony charge for pointing a gun at his girlfriend's face. now, where i think the army may have failed him is that army rules say that anyone with a civilian pending felony charge cannot go back to iraq. he had that charge for pointing the gun at his girlfriend and yet, they sent him back again to baghdad. ha after his second tour is when he was arrested for murder. >> soldiers from fort carson are serving in the war zone in afghanistan and are set to return next year. what's going to happen when they get home? we're talking with the new man in command at fort carson, major general david perkins. sir, i understand five days on the job, you have quite a challenge here as you enter the new position. probably did not expect you were

going to have to take this on. >> well, kyra, this is one of the many challenges that our army faces, but as with all challenges, the army spends a lot of effort at assessing problems, developing solutions to challenges and then working very hard to overcome them and post-traumatic stress is one of those things we put a large amount of effort into diagnosing some of the challenges as well as developing a lot of solutions to this specific problem. >> general, as you know, general mark graham came in there and just like you, had a lot of challenges on his hands, but he took action quickly, made a lot of changes. just to point out a few, from colonels to platoon sergeants, all of them are now trained to help troops showing signs of emotional stress. also fort carson has doubled its number of behavioral health counselors and tightened hospital regulations to the point where if a soldier comes in to see an army doctor even for something as small as a sprained ankle, they cannot

leave without a mental health evaluation. are you going to support those changes and what more are you going to add to that, sir? >> well, as you said, great strides have been made here at fort carson as well as throughout the entire army to address this. both from a preventive point of view as well as a diagnosis and treatment and so as you said, a lot of the diagnosis has become as commonplace as taking your blood pressure. we have extensive amount of screening that goes on prior to deployment, during deployment and very importantly, after deployment. another area we're continuing to expand is work with the families. we find that many of the stressors for these young soldiers are not necessarily solely from the combat area, but come from family issues, finance issues, so we've increased dramatically the number of military family consultants. we are looking at developing the resiliency. we have found that that is the key to those soldiers who can come and go from combat and make the transition fairly smoothly

that they have an amount of resiliency to deal with tough issues. we are training soldiers on that as well as family members, because some of the cases you mentioned, there was a family component to it. we are taking a very holistic approach to this very challenging problem. >> and general, a lot of these guys are pretty much scared to death to admit they have a problem. they're afraid it will kill their career. in many incidents, we have seen that happen, guys that have come forward, they have been seen as weak and that they cannot -- they can no longer lead or be promoted within the military. what are you going to do to change that stigma, to let men and women both know look, we all face these challenges, you've got to seek help, you've got to speak up so you do have a longer and stronger career in the military? >> you know, this is the key point that we're focusing on across the army is taking the stigma out of it. this is not just in the army but this is across our entire society, whether you're a member of first responders who deal

with stress, a corporate leader, political leaders, nobody in these positions generally come out and admit that they have had issues dealing with stress. the army really has led the way. you have seen from four star general on down personally come out and talk about their issues with post-traumatic stress. and this alone has created a large momentum to taking the stigma away. we have put together a mobile behavioral teams that will go down to units so the soldier does not have to leave the unit, go to a hospital or clinic and feel that he's coming out of the unit. these teams are ever present in the unit so it's very easy to get access to them. many of our counseling that is done, especially with family members, there are no records kept, again, so the stigma does not become part of their record because again, these are great americans. they volunteered to serve their country. they want to continue to serve their country, and they want to do it while their challenges are

being dealt with. >> sure. and you and i both know, you know, we see these homeless shelters and so many of them are vietnam vets because they were never taken care of and ptsd wasn't treated properly. we definitely don't want to see it with our men and women coming back from afghanistan and iraq. major general david perkins, appreciate your time, sir. we look forward to see what you do there at fort carson. >> thank you, kyra. a pleasure talking to you today. >> likewise. a bizarre end to what had been a nice vacation. a seattle man arrested by homeland security and jailed at fort knox because the army had him listed as a deserter. that's pretty interesting, because chris parks is a civilian. he spent two weeks behind bars, had his head shaved, the whole bit. so how could this happen? possibly a snafu ten years ago when he almost enlisted but backed out. take a listen. >> how paperwork could have gotten messed up enough to say that i was actually in the military and had made it there and i was actually, it says that

i was in there for two years before they finally figured out that i wasn't, and started counting me as a deserter. >> so far, he says no real explanation from the military. any updates, we'll be sure to let you know. a shocking rape. both the victim and her alleged attackers, children. we've been following this story out of phoenix, arizona for you and today, new insight into the prosecution's case from a former arizona d.a. t a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways.

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well, as each new detail came out, the story just got worse. an 8-year-old girl gang raped in a phoenix apartment complex, allegedly lured into this shed and attacked by four young boys. like the victim, all of them are liberian refugees reset witled the u.s. the oldest of the boys is 14. authorities plan to try him as an adult. that caught a lot of people's attention but catching even more, word from police the girl's family disowned her out of shame. with culture an issue here, liberia's president decided to weigh in. here's a snippet of my interview with ellen johnson sirleaf on friday. >> those parents should know that things have changed in liberia, no longer do we tolerate this. this is not a question of shame on the family.

it's a question of the assault on a young child and that cannot be tolerated. >> well, clearly, a global outcry here and offers of help for the little girl have been pouring in. it's an emotional situation and you've got to wonder if that could affect the case at all. joining us live from phoenix, former maricopa county attorney, rick romley. i'm curious, it's not every day that a president of another country weighs in on a local case. >> oh, it's quite unusual and -- but it's a shocking case. it's one that has touched a lot of people internationally and here in arizona, i can assure you, something on the story is revealed every day in the news media. >> what do you think as an attorney and knowing phoenix, arizona so well and the crime there and the influences that are taking place within this

kind of battle between culture and crime. we talk a lot about rape in liberia, used as a tool of war and you've got these kids coming over here, many of them not seeing it as anything else, you know. do you think that this 14-year-old should be charged as an adult? >> well, i don't have all of the facts, but considering that arizona, the laws in arizona says that the juvenile justice system can only deal with that juvenile, the child, up until their 18th birthday, then they must be let go, totally free, no supervision in any way, it's probably -- i support at least on the surface that he should be tried as an adult. i mean, it was a serious, it's called a dangerous crime against a child, and the initial information is that i do believe he should be tried as an adult. >> tell me how you do process that, though. how do you decide if someone

that young be tried as an adult? is it because the crime is so atrocious? kind of put me into the mindset of how you make a decision like that. >> you know, there's a multitude of factors that a prosecutor goes through in deciding whether or not to try him as an adult. you know, number one, of course, what kind of crime was committed. was it a burglary, was it a murder, was it a dangerous crime against children, the more serious the charge, of course, the more likely that it is to be a transfer. you want to look at the underlying facts of the case as well. how egregious were the facts that involved in that particular criminal activity, the background of the child that you're dealing with, have they been through the juvenile system over and over again, and i think one of the primary focuses here is how much time do you have left in the juvenile justice system to deal with these children, because at 18, they've got to be let go no matter what. while in the adult system, you

can keep them under supervision, you can keep them incarcerated if necessary for a much longer period of time. >> so is the idea to try and change the -- i mean, i guess there's two ways to look at this. looking at how awful this crime is, do you get him off the street and get him into a facility where he needs to learn this is not how you behave in the united states, whether rape is used as a tool for war in liberia or not, you're in the united states now, this is not how you view it, okay, so you can see maybe from the point of view of some folks that he could be rehabilitated, he could be taught what you are supposed to do and not do, you will be held accountable for your actions, but at the same time, the system on who could, i mean, put himself into a very dangerous position by being in jail. a lot of individuals who commit crimes against young children, they don't make it out alive. >> look, this is a much more complicated case than your average case. there's no question at all.

you have a culture that's involved, the child from liberia, different type of culture, but with that said, i mean, the people that come to this country must abide by the laws of this country. i mean, there are some countries that permit that wives can be beaten and even at times be murdered for certain types of offenses by their husband. that's not acceptable in this country. now, where you are right is exactly that you take into account those types of circumstances at the time of sentencing. the judge, i am absolutely confident, will consider those types of factors. but what's more complicated in arizona is that if he goes to trial and is found guilty here, this is a mandatory prison term for a minimum of 14 years. so there's a lot of dynamics in play. i don't think that the story has totally been told yet. i don't think that we know all the facts here. i don't know what the prosecutor

is going to be doing, because he did file it directly into the adult court system. we don't even know if the prosecutor's going to try to get the 13-year-old or the others into the adult court system. because our laws are such that that requires the approval of the judge. if you're under the age of 14, a judge must make the determination whether or not they should go to the adult system. because he's 14, the prosecutor exercises discretion and filed it directly and we're going to have to be waiting to see if there's a plea bargain that's going to be offered and of course, taking into account the culture that he comes from. >> it's a heartbreaking story, every way you look at it. appreciate your insight. we will stay on top of it. thank you. if you would like more background on this case or you want to see my full interview with the liberian president, head to cnn.com/kyra. remember the cemetery outside chicago, the place where the dearly departed were disturbed? turns out this isn't the only graveyard in the land of lincoln believed to be the haunt of crooks.

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water spout, scary storms and heat waves. chad myers keeping track of it all for us. >> got it all on one map. the really excellent pictures, you want to go on to some of the tampa tv stations, you can also go to i-report.com, there are a couple right out of tampa, the causeway there had a water spout not very far from it. we are going to see weather across the midwest. that's why this is in red. also showers and thunderstorms up and down the east coast. we have been monitoring nasa trying to figure out what it was just a second ago. if you have nasa tv, i don't want you turning off cnn but maybe you can do it side by side. they were looking down from the space station with their camera on top of a thunderstorm showing this lightning. pretty cool shot. could have been some of the lightning in florida although it seemed like a dark shot. seemed like wherever the thunder and lightning was was in the darkness, not in the light like this would still be, but here's where basically the water spouts were earlier today.

we also have showers and thunderstorms in this watch box that's north carolina, that's virginia, little bit farther to the east and to the south, we'll see some showers and thunderstorms, south carolina and also down into florida. one spot that's actually affecting air travel is right here very close to dallas on up to oklahoma city. literally from i-20 to i-35, kind of a shield of rainfall right there, dallas-ft. worth, about one hour delayed but planes are still moving in and out. kyra? >> got it. thanks, chad. president obama says he hopes the explosive arrest of a harvard professor can be a teachable moment. the city of cambridge plans to build on lessons learned.

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to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. so what do you think? 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. for a week now, it's been a he said/she said or he said/he said scenario. today we hear what the tapes say. the arrest of harvard professor henry gates sparking a huge controversy after he accused the

arresting officer of racism. the police sergeant firing back in several interviews, defending his reputation and his decision to bring gates in on a disorderly conduct charge. cambridge police have released the 911 call that started it all. a harvard employee who mistakenly thought gates was trying to break into his own home. take a listen. >> i don't know if they had a key or not because i can't see from my angle but when i looked a little closely, that's when i saw -- >> -- hispanic? are they still in the house? >> they're still in the house i believe, yeah. >> are they white, black or hispanic? >> well, there were two larger men. one looked kind of hispanic but i'm not really sure and the other one entered and i didn't see what he looked like at all. i just saw from a distance and this older woman was worried thinking someone's breaking in someone's house, they have been barging in, and she interrupted me and that's when i had noticed. otherwise i probably wouldn't have noticed it at all, to be honest with you. i was just calling because she was a concerned neighbor. i guess.

>> okay. are you standing outside? >> i'm standing outside, yes. >> police are on the way. you can meet them when you get there. what's your name? >> my name's -- >> we're on the way. >> i guess i'll wait. thanks. >> working on audio from the police radio calls that day. we will bring that to you as soon as we have it. got to wonder if the cemetery is the new stomping ground for crooks after an easy buck. it's a question big enough for congress now to hold hearings on it today. two cemeteries in illinois spotlighting the problem. in the last few days, a human bone was found on the ground at mount glenwood cemetery, a family has filed a lawsuit because they claim someone took a headstone from a relative's grave and tried to sell it. not far away, in illinois, you may remember the four ex-employees accused of digging' hundreds of graves, dumping the remains and reselling the plots. relatives of people buried there are expected to testify at daps hearing. the u.s. economy is coming back and stronger than ever. we can take that forecast to the

bank. we hope. it comes from the chairman of the fed, ben bernanke. he wasn't under oath on capitol hill but talking to regular people at a town hall event in kansas city. bernanke says he, too, was frustrated having to spend tens of billions of taxpayer dollars on big bank bailouts but the whole u.s. financial system was at risk. and he didn't want to be the guy who presided over the second great depression. mention president obama's stimulus program and some jump for joy but others are on the warpath, upset over the lack of funds. jim acosta is on the case of one midwestern mayor. >> reporter: earlier, joe biden visited st. cloud, minnesota, to tout the prospects of the stimulus. now the mayor of that city has become one of the stimulus program's toughest critics. his question, what's taking so long. >> our best days are ahead of us. that's just not happy talk. >> reporter: back in march, vice president joe biden took a stimulus road trip to st. cloud, minnesota, where he toured the

new flyer bus company. he and transportation secretary ray lahood predicted the stimulus would create jobs. >> this recovery plan, i really believe, will put people back to work in good-paying jobs this spring, summer and fall. >> we had a high expectation of these things ready to go right away. >> reporter: but four months later, st. cloud's mayor says he's still waiting for those jobs. still waiting for an answer on nearly a dozen stimulus requests. he blames stimulus red tape. >> so is it your feeling that the vice president and the transportation secretary overpromised and underdelivered? >> i think it raised our expectations. it raised our expectations that we were going to see something quicker. >> what i said was accurate. sure. >> reporter: transportation secretary ray lahood points to the new flyer bus factory. thanks to the stimulus, it's seen a boost in sales and avoided layoffs. >> all you see all over america are orange cones, people working in good-paying jobs, building roads, building runways,

building bus garages. so the idea that our money isn't going out is just not accurate. >> reporter: we did find new stimulus jobs in st. cloud at the guyer signal company. they hired 25 new workers to make road signs. stimulus projects across the state. before the stimulus and after the stimulus, you've seen an effect? >> absolutely. compared to last year and this year, it's been resounding effect. >> reporter: resounding effect. >> absolutely. >> reporter: st. cloud is weathering the recession well. city hall is surrounded by state road construction projects, which have driven down the local unemployment rate to 7.7%. far below the national average. that's without the stimulus. a lot of mayors would trade places with you to have that unemployment rate, would they not? detroit, it's 15% there. >> we have a diverse economy and again, we still have challenges. >> reporter: you feel like you're not getting your fair share? >> absolutely not.

i'm convinced of that. >> reporter: the transportation department cites a recent government report showing the stimulus is moving ahead of schedule but don't tell that to the nation's mayors, who have their own studies showing cities, when compared to rural areas, are getting the short end of the stimulus stick. kyra? >> jim acosta, thanks so much. good news on the economic front and can't we all use a little of that. if you're in the market for a new place to live, what the latest new home sales numbers mean for you and what it signals about the recession. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways.

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warren buffett says bet on america to recover from this recession. poppy harlow asked the legendary investor for his thoughts about the state of the economy and where he thinks we ought to be putting our money. are you getting free advice from a very smart source? >> reporter: he knows how life is for all of us. warren buffett. we spoke to him one-on-one on friday and you know what, he's been making money in the market

really since his father opened a savings account for him when he was 6 years old at the omaha national bank. he told us you got to have faith in this economy even now when things look rough, because when you look back in history, america always, time and time again, emerges stronger from a crisis. take a listen. >> anybody that bet against this country has lived to regret it so we have a system that unleashes human potential and it will continue to do so. but you won't see that, you know, tomorrow or the next day, necessarily. but i will guarantee you that five years from now, ten years from now, that you and your kids and all the people around you will be living better than today. that's the history of america. >> of course, he acknowledges this is a major, major bump in the road but i felt it was really interesting, he said ultimately it's american ingenuity, our entrepreneurial spirit that helps us emerge from this, not necessarily government stimulus. that's an interesting comment at a time when so many people are asking do we need a second

stimulus. when i asked that, he said it's on us and that's what's going to solve the problem. >> along those lines, what did he have to say about how average americans should be investing right now? a lot of people worried about putting their money in the market after all this happened. >> reporter: exactly right. a lot of folks have lost half their savings or more. i said is now the time, can we have some confidence we can take our money from under the proverbial mattress, put it to work in the market, maybe slowly but should we have that confidence. here's what he told me. >> i think you should always have confidence in america. i think the time to have the most confidence is when other people have the least confidence. that's when things are cheap. people were buying these same businesses, you know, couple years ago when the dow was 14,000 and the businesses haven't gone away. >> reporter: this is something we have heard from warren buffett time and time again. he's known for that phrase, be greedy when others are fearful. this man jumped in the market

with multi-billion dollar investments in goldman sachs and general electric about a year ago, so interesting talking points from him and his take on it all. you can see that full interview online on cnnmoney. >> thanks so much. we have been hearing it for months. experts saying the economy will rebound later this year. but today, well, we have had some hard numbers, i guess, that show at least one area is getting a little better and it's where the whole mess started, the housing market. new home sales surged 11% last month. susan lisovicz following this from the new york stock exchange. susan, put this in perspective for us. an 11% jump, how big of a deal is that? >> reporter: pretty big, kyra. when that news came across, i was sitting in this chair. my eyes popped because it was nearly five times greater than the estimate. in fact, it's the biggest month-to-month jump since 2000. now, let's put it in perspective for you. builders are building a lot fewer homes. the number of new homes on the

market are at the lowest level in a decade and we're buying fewer homes, no question about that. the number of homes that sold in june, 384,000, it sounds like a lot but compare that to 1.4 million four years ago. so the market is still weak, but the trend is undeniable. this is the third month in a row now that new home sales have risen and the bigger part of the market, existing home sales, have also risen three months in a row. we got existing home sales for june last month. it's also taking awhile to sell these homes, no surprise there. it takes nearly 12 months. so you know, there's still resistance, the market is still weak, but i think that there is a growing chorus that the housing market, which was the root, many would say, or where this whole mess started, is showing signs of bottoming out. >> what's finally turning things around? is it just that prices are so low? >> reporter: well, prices are a

big deal. you just heard warren buffett saying that he buys stocks when things are cheap and we consumers are pretty smart, too. prices are down year over year for new home sales, 12% to $206,000. it's a median price. mortgages have come down as well. part of the government's plan, stimulus plan, is to put a floor in the housing market. they have been buying all these securities that are tied to mortgages. the 30 year fixed ranged between 5.3% to 5.5% in june and don't forget, there's a first time homeowner tax credit of $8,000. it goes away at the end of the year. consumers have been taking advantage of all of those things. >> indeed they have. thanks, susan. home sales are up so you think builders would be dancing on the ceiling, right? but that boost has yet to trickle down to them and many are struggling just to stay above water. let's check out money and main street.

allan chernoff has the story of one home builder in manchester township, new jersey, whose strategy for survival depends on uncle sam. >> how you doing? >> reporter: tom gave up a secure number-crunching career for the nail banging of home building. his timing was perfect 18 years ago. he rode the housing boom to build a thriving business, employing a dozen full-time employees, putting up as many as 50 homes a year. >> people need places to live. that is the american dream. >> reporter: but after nearly two decades of building the american dream, the housing bust has been a business nightmare for him. today, tom is down to only two full-time employees and he's building only three homes this year. two of which are unsold. >> right now, you just, you know, live for a better time. >> reporter: home builders are suffering in every state. the business is down by two-thirds nationwide since

peaking in 2005. new jersey is doing a little better than that, but you would never know it, talking to tom. >> it's been a crash. most people will tell you that it's more of a depression. >> reporter: to survive, he is turning to uncle sam. not for a bailout, but for a piece of the stimulus pie. he's bidding for contracts to repair a military recruiting center as well as other government business, and to improve his odds, he is partnering with larger companies, experienced in doing construction for the military. >> people need to work and my company needs to work. >> reporter: a lot is riding on his bid for new business. he has a son in college and a daughter about to enroll. the family already has had to raid their 401(k) and tap other savings. do you regret having left accounting? >> no. there's no regrets. >> reporter: even now? >> yeah. sure. >> reporter: even now? >> yeah. we could always -- i've always said to my wife we can always go back to do that. >> reporter: he is optimistic he'll win a contract from uncle sam. that would help him hang on

through the recession and eventually rebuild his business. allan chernoff, cnn, manchester township, new jersey. for more of our money and main street series, tune to cnn at 8:00 eastern every thursday night. it was bound to happen, alaska's best-known politician in the news again. the media frenzy as sarah palin officially steps away from the spotlight. yep, don't you know she had something to say about that. d '. announceit keeps my airways. to help me breathe better all y lo helme breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long.

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sarah palin woke up as sarah palin, no governor in front of her name. with more than a year to go in her first term, she handed the reins to sean parnell sunday. she said she had no interest in hanging around as a lame duck.

the 2008 gop nominee for vice president called her governship a success, says she doesn't need the title to speak out and singled out the media for a final parting shot. >> you represent what could and should be a respected honest profession that could and should be a cornerstone of our democracy. democracy depends on you and that is why, that's why our troops are willing to die for you so how about in honor of the american soldier, you quit making things up. >> palin leaves office with a pile of legal bills from a pile of ethics complaints. she isn't saying what she plans to do next. as always, team sanchez back there working on the next hour of "cnn newsroom" but today, it's team holmes. now, t.j. -- >> it's still team sanchez. >> who you talking to? talking to yourself? >> you're not hearing me? >> are you hearing me okay?

>> i'm hearing you just fine. >> i got a little something for you. >> what you got for me? >> let's cue it. ♪ purple rain purple rain >> why, kyra, why? >> because i'm going to test your knowledge of music here. today is the 25th anniversary of what? >> oh, i don't know. "purple rain" the album? >> nope. >> no. 25th anniversary. what's today? >> you were probably about 8, 6. wait, i'm counting right now. the anniversary of the movie. >> of the movie. >> you remember the movie? >> of course i remember the movie. appalonia 6, right? of course i remember that movie. >> how old was he? did we figure it out? was he born yet? >> of course i was born. >> you were 2. we just figured it out. you were 2. >> no, i would have been 6 at the time. >> oh, my god. am i told. what else are you working on

besides renting "purple rain" tonight? >> well, we did have some things to tell you but i think we're going to blow out the show and do 25th anniversary special of prince and "purple rain." >> otis will like that. he'll spin the tunes, you can dance. >> oh, my goodness. >> reminisce about your days with the long -- >> not everybody from memphis had a jheri curl. let me get through this, please. please. we are, of course, you were talking about it a little bit, we just got the 911 tape and also the audio from the police track from the incident, the police versus the professor. well, we're trying to go through that tape a little more and it's a bit revealing. we thought this would all be put behind us but now these new tapes got new questions here. we will be getting into that. and we will have a strategist on. you were just talking about sarah palin. we'll have a republican strategist on to tell us if he

would have told her to say what she said in her farewell speech. she took some shots at the media and whatnot so we are going to look into that as well. let me go ahead and get all tv with you now. >> sounds great. see you in a little bit. >> all right. gecko vo: you see, it's not just telling people geico could save 'em hundreds on car insurance. it's actually doing it. gecko vo: businessmen say "hard work equals success." well, you're looking at, arguably, the world's most successful businessgecko. gecko vo: first rule of "hard work equals success." gecko vo: that's why geico is consistently rated excellent or better in terms of financial strength. gecko vo: second rule: "don't steal a coworker's egg salad, 'specially if it's marked "the gecko." come on people. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long. and it's not a steroid. announceit keeps my airways. to help me breathe better all day long.

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this has been the deadliest month for international forces in afghanistan. in helmand province has seen some of the worst fighting. we go offroading with u.s. forces to see how they deal with the biggest threat to their lives. >> reporter: marines on a cannonball run, blazing a trail through the desert and sometimes getting stuck in the sand. they're offreoading to avoid ieds. >> open desert's the best way to go. there aren't too many main roads but if there are, we try to stay off them because they know that's the best place they can catch us. >> over the course of a long war in iraq and afghanistan, ieds have been the number one killer of coalition forces. >> reporter: lieutenant joshua spencer is the 24-year-old leader of the counter ied team for the second late armored

reconnaissance battalion. to protect his men he tries to think like a taliban bomb maker. >> i'm curious about who they're after because they don't try to take out any coalition forces. they try to take out key leaders, key assets. >> reporter: this photo shows an ied blowing up under a bomb hunting foot patrol earlier this month. two marines were killed in the blast. cheap, easy to make roadside bombs have taken their toll on american and nato forces. this has been the deadliest month yet of this eight year war. >> you hear a pop and then all of a sudden, you just hear boom. the explosion, all you see is dust and your ears are ringing. your body, your adrenaline's rushing, body's so tense at the time, you like have no time like trying to react and you don't know what to do. >> reporter: corporal charles hettle survived an ied strike

against his armored vehicle on july 11th. the bomb killed two marines. >> i have flashbacks of what happened a week ago, and all i can do is snap myself back to reality. >> reporter: the threat of bombs has forced coalition forces to rely more on helicopters to move troops and supplies, but the marines also have an arsenal for combatting these deadly boobytraps. >> this is an example of a mechanical solution. it's a mine roller. what you'll see is you'll see the wheels here, they cover a path that's slightly wider than the track width of the vehicle, and what it is intended to do, it's intended by pressure to set off a pressure plate mine or ied. >> reporter: sometimes all it takes to find a bomb is a good nose. >> doing his little side to side pattern, just clearing both sides out.