>> larry: griffin o'neal. kelly ripa and mark consuelos are here tomorrow. time now for my gal erica hill. she's sitting in for anderson cooper. here is erica hill and "ac 360." tonight, a boost for the economy, but does it also mean a boost for your taxes to pay for it? we'll take a look at that. also, randi kay on a breakthrough in the michael jackson custody case and growing questions about the jackson fortune. how much of a fortune is it? and later, dr. sanjay gupta with a major discovery in a war against a disease that kills more than a million people every year. uncovering the origins of malaria and how it could save lives. plus, four decades after their murders horrified the country, what's become of charles manson and his twisted followers. we begin with new signs the recession is slowing. they come with a potential price. new taxes possibly for you. will president obama end up breaking a campaign promise not

to raise taxes even a single dime on the middle class? this weekend a pair of the president's top economic advisers refuse to rule out new taxes to close the budget gap, a shortfall that actually helps throw the economy in a recession but could hurt it later. your money, your future, your taxes. ali velshi has it covered. good to have you here. bottom line, is everybody going to start paying more in taxes? >> six, even, eight months ago we couldn't get through a few nights without talking about all the terrible things happening to the economy. before we get to taxes, let's tell you what is going on. we've had good economic reports, indications things are going better. we always know the stock market starts to recover before the rest of the economy in a recession. but take a look at this. go back to election day and see where the dow was. about 9,139. it was pretty choppy, but pretty much down until about march 9th, which we now think, at least if things don't go wrong again, was the bottom of this market.

now look what's happened since then. it's almost a v-shape. back up today higher than we were on election day. that's number one. take a look at the thing that got us into this recession in the first place. the housing market. we've seen in june, that's the last month for which we have numbers, an increase. a little one, but an increase in the price of homes. we've seen a lot of homes being sold. and that's interesting because what's happening is people are buying a lot of homes that are distressed or in foreclosure. let's take a look at this. the increase in home prices in june in major metropolitan areas is only half of 1%. but, boy, we'll take a gain as opposed to a loss. let's take a look at existing homes. used homes. 85%, 90s% of the homes all sold are existing homes. the price from may to june went up 3.6%. it is still low compared to last june a year ago, but over the course of one month we've seen an increase. take a look at new home sales. this is interesting. we stopped buying and stopped building new homes. up 11% from may to june. again, down compared to last

june, but up in one month. so a lot of stuff going on. giving people a sense, erica, that this economy might be on the mend. >> so if it might be on the mend, how do we get to this mending point? is it the government intervention at work? there were programs put into place before president obama took office. can his administration really take credit? >> i've talked to a lot of economists about this. there are some mixed views. some say if the economy continues to grow in a robust fashion, this administration can take credit for it. but right now, the growth that we've seen in the second quarter, the second three months of this year, the things we're seeing now probably have a lot to do with what happened before the election. probably what happened in last october where we had t.a.r.p. and we had all of that intervention by the federal government. boy, the government threw so much money at this economy. back then we were saying, look. you'll see a reaction. you are starting to see that reaction. this probably has throws do with the obama administration and more to do with more than a trillion dollars thrown at this

problem by the previous administration. >> that trillion dollars has a little something to do with every single american out there. back to the issue at hand. even if things are getting better, how is the country going to pay for all of the money that's been thrown at this problem. is it inevitable that taxes are going to increase and not just for those making more than $250,000? >> yeah, and that was a long way for me to get back to the point you asked in the first place but that's exactly right. what's happened here is that we have seen -- let me give you an example of what we've spent in the first half of this year. the government took in a little less than a trillion dollars. $986 billion. that's revenue. that's taxes and things like that. let's take a look at what they spent. $1.94 trillion. so the government spent almost twice what it took in, leaving a gap of $954 billion. almost a trillion dollars. that's the deficit when you take all of the deficits, put them together, have the national debt, and it is a whopping national debt. you'll talk to somebody after

this a lot smarter about this than me. it's not obvious how exactly we end up paying for this national debt without increasing taxes on more than just high earners, erica. ali velshi, always appreciate you putting it into perspective. we'll dig deeper on to angles. who will pay? plus little damage control today at the white house in what was said on this subject over the weekend. joining us, senior cnn political analyst david gergen and david walker, kormer comptroller of the united states. david walker, i want to start with you. from what we heard from ali and i heard you shaking your head. a tax increase is all but inevitable. is this an increase in income taxes for maybe those making under $250,000 a year or something like a value added tax or a vat that would apply almost across the board because it's goods and services? >> i think it's going to be a combination. we can see a broadening of the tax base to keep rates as low as possible. there will be income tax

increases. there will be a wage cap base and a vat probably dedicated to health care expansion. all three. >> none of those, i imagine, are going to go over very well. david gergen, the president throughout the campaign saying i'm not going to raise taxes even one single dime on 95% of americans. kind of boxing himself into a corner. how does he go back now and sell a new tax which sounds like he has to do? >> well, he's not going to do it quickly in any event. he's certainly going to wait until the recession is over and unemployment comes down. that may be a year and a half, two years. but david walker is right. inevitably, the taxes are going to go up and go up on the middle class. the administration will try first to take it out of people at the high end but there's not enough money there. and one day, eventually, as so many others have done. if you spend a lot of money, as this administration wants to do and as the bush administration did, that combination of spending is going to force taxes to go up eventually. >> we are going to continue this conversation next. you too can join in the live

chat. also ahead tonight, dr. sanjay gupta with news out of africa that could one day wipe malaria off the planet. and late new developments in the jackson story tonight, including dr. arnie klein getting into the legal act. a judge ruling on custody as the fight continues over the estate. of all the things made for women... maybe one of the most important... is new centrum silver ultra women's. a complete multivitamin for women over 50. it has vitamin d which emerging science suggests... supports breast health... and more calcium for bone health. new centrum silver ultra women's. you can make a positive change in your career.

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obama campaigned on and kept his promise to cut taxes for the middle class. the question now, will he still be able to keep that pledge when the bills come due? over the weekend, two of his chief economic advisers raised doubts over the weekend and the white house tried to squash them. >> we are going to do what is necessary. >> it is never a good idea to absolutely rule things out no matter what. >> the president's clear commitment in the clearest terms possible. he is not raising taxes on those who make less than $250,000 a year. >> back with david gergen and david walker. david gergen, you said just before the break that the president, if he did have to raise taxes, would not do it now. would take a while until we are out of the recession. is there a bit of a political window because there are midterm elections and would it be better to get it out of the way so as to not end up with a larger problem for democrats if he wants to maintain a majority?

>> i don't think so, erica. i think to raise taxes now would be bad economics with the recession still under way and high unemployment. the political price of doing that now would be horrendous and democrats would lose badly in the 2010 elections. i understand yesterday why the economists on his team said you have to keep the door open to higher taxes. i understand why the political side of the house today tried to close the door. they are going into a month that is vital for health care. they don't want this question of higher taxes dampening public support for health care. they already have enough problems on health care reform. as david walker has been telling us again and again and again, we have created a bubble in our federal government spending that is going to burst. the only way you are going to be able to control and contain that bubble over time is to reduce spending and to raise taxes. and the middle class will have to pay for part of that. there is no way around it.

there is not enough money among people over $250,000 to close that gap. >> david walker, you brought up health care. i noticed yesterday from treasury secretary geithner and from larry summers, they both put out there this idea that you can fix the deficit, but the way to do that is to reform health care. the congressional budget office said health care reform will add $1 trillion to the deficit in the next ten years. is it smart to go out there with this message if you are the administration of saying we can fix this deficit. we can do it with health care, which is what we want to push right now? >> we clearly need comprehensive health care reform. health care costs are the longest driver to our long-range deficits. you cannot reduce health care costs by expanding coverage. that is an oxymoron. i'm sure the president meant what he said when he was running for election. however, there have been big

subsequent events and the math doesn't come close to working so, therefore, he will have to break that promise at some point, but it won't be until after the economy turns around. >> there is good news on the economy. we heard a little from ali. there has been some recovery. how much credit can the obama administration claim for that recovery? >> some, but not as much as they will. that's how politics work. >> david gergen, how much do you think they should claim? >> i think they should claim as much as they can get. as a political matter. i think david walker is right. most economists will tell you that the -- exactly what ali said in his report earlier, the stimulus program has helped some. the credit program, the housing program this administration, the obama administration has put forward, they have helped some. but probably what the federal reserve did before they took office and all the money that was thrown at the economy before they took office probably did more. listen, when you're in the white house, you're going to get blamed for what goes wrong. it is totally understandable you

try to take credit for as much as you can when it goes right. >> victory has a thousand fathers, defeat is an orphan. >> great to have you both with us tonight. what do you think about this? how is the new president doing as the second 100 days of the obama administration winds down? we want to know. cast your vote at cnn.com/reportcard. give your grade. on thursday night, 8:00 p.m., you will see the results. former president clinton heading to north korea. two lives may depend on his diplomacy tonight. also new evidence that chimps are the source of one humanities deadliest and toughest diseases to treat.

breaking news tonight.

cnn has learned former president bill clinton is on his way to north korea. a reliable source telling us he is headed there in hopes of securing the release of journalists euna lee and laura ling. as you recall, they were tried, convicted and sentenced to a dozen years of hard labor for "grave crimes against north korea." mr. clinton is reportedly on his way but not yet arrived of the north korea capital of pyongyang. euna and laura have been held there since the 17th of march. we are following several other stories. gary tuchman with the "360 bulletin." >> the navy is awaiting dna tests of the remains of the first american officer shot down in the 1991 persian gulf war. navy captain michael scott speicher disappeared on the first night of the war. last night the defense department said they found his remains and helped identify them with dental records. a tip from an iraqi citizen last month helped solve the mystery. iran not officially confirming they are holding

three missing american hikers. secretary of state hillary clinton and a diplomat from t tehran are pressing iranian diplomats for information. they are students of university of california berkeley and were hiking in kurdistan. they crossed an unmarked area. friday afternoon they contacted a friend to say they were surrounded by iranian soldiers. a new strain of the virus that causes aids has been identified and for the first time traced to gorillas instead of chimpanzees. it was detected in a 26-year-old african woman from cameroon who now lives in paris. a terrifying moment for those onboard a continental flight from rio de janeiro. many passengers said they did not hear any warning. the aircraft was forced to divert to miami. there are a lot of frightened flyers out there that get scared about hearing this story.

erica, flying is very safe. this is very rare but wear those seat belts. >> a man who flies about 18 times a week. i'll take your word. just ahead on "360," michael jackson's children and a fresh wild card from his former dermatologist dr. arnie klein. we have the latest on the custody ruling. what it means for katherine jackson and debbie rowe and the strange request from the dermatologist. what did he ask the judge for? that is coming up. and a bit later, 40 years later, the anniversary of the manson murders. we take a look at the crime and the killers when "360" continues. (announcer) introducing new tums dual action. this tums goes to work in seconds and lasts for hours. all day or night. new tums dual action. bring it on.

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a judge making it official granting katherine jackson permanent custody of her three grandchildren. it was the singer's wish that michael jr., paris and blanket live with his mother. what about debbie rowe? the hearing addressed her rights and looked at who should control jackson's estate. but it wasn't all that straight forward. there was a bizarre moment that involved one of jackson's doctors and has a lot of people talking and wondering tonight. randi kaye with the latest. >> reporter: we all are. katherine jackson was awarded full custody. jackson's ex-wife debbie rowe will have visitation. before that was made official, major drama in the courtroom. a strange request on behalf of jackson's longtime dermatologist, dr. arnold klein. his lawyer told the judge dr. klein wanted to be involved with the children's medical care and education and be a part of their lives. this came out of nowhere and was all so bizarre because of all the talk out there that dr.

klein may actually be the biological father of these kids. he told cnn "to the best of his knowledge he is not their father but he admitted he donated sperm once and just doesn't know. we are talking about the two oldest children. this is all very bizarre. the judge told his lawyer dr. klein would not be a party to the custody hearing. his lawyer released a statement saying dr. klein is not opposed to katherine jackson being the guardian adding "dr. klein has always had a special relationship with paris, katherine and michael and is looking out for their best interest. he apparently promised michael jackson he would do so. >> interesting. the last person a lot of people would expect to come forward. not the first twist or turn. the real business of the day was the custody issue and the hearing on the estate. custody resolved. how about the estate? >> reporter: not exactly. the estate battle continues. more hearings have been scheduled. what's really behind this is mrs. jackson wants a seat at the

table and more control over her husband's estate. it is unclear what the estate is worth. when he died, michael jackson was about to go on tour. he hoped the final tour would jumpstart his career and juice his bank account. he was $400 million in debt by some estimates, so why the fight over his estate? >> michael jackson will be worth more dead than he was alive. >> reporter: this business agent handles the estates of other celebrities like marilyn monroe and james dean. he predicted jackson will be the biggest grossing personality of all time. good news for his mother katherine and his three children who together were left 80% of his estate. so what is the estate really worth? katherine jackson's attorney has said $2 billion. a source close to the estate dealings called that ridiculous and calls her attorney terribly misinformed.

that source told me the estate is likely worth $100 million with the potential to be worth a whole lot more. already we learned deals are in the works that could bring in hundreds of millions of dollars, including a movie featuring hours of jackson's final rehearsal footage. our source says the estate will get 90% of the profits. also jackson's memoir "moonwalk" will be re-released in october. that deal is worth $60 million. >> you are talking about the copyrights, the trademarks, the rite of publicity associated with his name and likeness. >> reporter: one of the men in charge is john branca who helped turn around elvis presley's estate. two years ago, "forbes" magazine put elvis at the top of its list of dead earnings celebrities. if all goes as planned, jackson may surpass him. since his death he outsold every artist in albums and downloads. in fact, he's the highest selling artist after death since

nielsen started tracking this stuff in 1991. the numbers don't lie. from january 1st of this year until the week he died, he sold 297,000 albums. compare that to 3.73 million five weeks later. in 2009 prior to the week he died fans downloaded 1.3 million of his songs. five weeks later it jumped to 8.5 million. he had the top ten albums on the billboard chart for two weeks, the first time any artist alive or dead has done that. this senior editor from forbes says the time is now for jackson's estate to cash in. >> right now michael jackson has his best shot ever because everyone is looking at it through rosie, tinted glasses. the further we get from his death, the more the sunglasses are taken off. the value of his assets will go down. >> reporter: no doubt jackson's family and his creditors hope

that doesn't happen anytime soon. now the most significant piece of business to come from today's estate hearing was the fact that the will was sent on to probate which will review his wishes and interpret his instructions. this means the judge accepted the will as valid and katherine jackson did, too. it's significant because her lawyer made a big deal last week about the will not being notarized. in california a will doesn't have to be notarized. this is a very good thing for the executors named by michael jackson in the will to handle his estate. >> randi, thanks. those are the issues over the jackson estate. there is plenty to get to tonight. joining us is jeffrey toobin, in los angeles cnn legal analyst lisa bloom. there is never a dull moment in these discussions. jeff, we were talking about this a little bit in the break. i have to go back to the kids because this custody battle. dr. arnie klein showing up essentially saying he wants a say in how the kids are raised. did you see this one come coming?

>> the good news is there is not a custody battle. katherine jackson has custody, and there wasn't a fight with debbie rowe. arnie klein comes in and he doesn't ask for custody. he doesn't ask for visitation. he just sort of asks to be invited to thanksgiving every year. >> what is the likelihood of that happening in a custody case? >> the thing is what he was asking for, the law does not have any provision for and he has no legal status because he is -- he is rumored to be their parents, but he has never proven to be the father. the deceased's dermatologist gets no rights to the children. >> are you sure? >> i don't think there is anything going to come of this. >> what if he does turn out? what if it happens and it turns out he is the biological father? would he have rights and be invited to perhaps more than thanksgiving? >> remember, michael jackson married debbie rowe when she was six months pregnant with their first child.

i thought he did that to take advantage of california's conclusive presumption that a child born to a married mother and wife is the father of that child if they are cohabitating, period. except if a punitive father comes in within two years and requests a blood test. those two years have passed for a long, long time. there are other cases in california where the father can come in and request a blood test under unusual circumstances even after those two years. so nothing, as far as i'm concerned, is off the table in this case. anything could happen just as we saw today in court. >> the weird thing is on one level, i want to have a dna test. i want to prove i'm the father. he didn't do that. >> he is being so cagey. >> you think, lisa? >> i want to make sure they go to a good college. it was strange. >> it was odd. we can go back and forth on

this. we do have a couple other things to get to. really quickly, debbie rowe. does this seem like a good setup? any surprise she got visitation rights? >> no. i think it is a nice resolution. there is no conflict. she has gotten a great deal of money from the jackson family in the past. i thought she would hold them up for more money. but she didn't. but again, it's good for all concerned that there's no lingering conflict. >> lisa, let's turn to the estate. we didn't get a final judgment on this today. why not? and do you think it is something that the judge will come to quickly moving forward? >> the judge did give a temporary win in my opinion to the executors of the estate. they stay in as executors and the will is accepted. the will names them as executors. not katherine. michael jackson had the opportunity to name his mom. he did not name her. they're going to continue for the next 60 days administering the estate. my prediction is that katherine jackson is not going to be brought in as an executor

of the estate unless she can show serious misconduct or fraud by these guys which so far has not been even suggested. all we have is a run of the mill discovery dispute which i think is going nowhere. she is going to get the documents, agree to confidentiality. and i think that's going to be the end of it. >> doesn't she get to see some of the information or the comings and goings of this michael jackson family trust because she does receive a portion from it. >> absolutely. she is a 40% beneficiary and as guardian of the kids that have 40%. we are talking about 80%. she has the right to get documents and information. to make sure the executors are acting in the children's best interests. it doesn't mean she gets everything she wants. she doesn't get control over the complicated legal and financial dealings. that's why these two guys were brought in. we have a record industry executive and a lawyer which makes sense. >> that is right. it is worth noting that they don't have to resolve everything right away. this is a very complicated estate which exploiting it will

take years. is it worth $400 million? is it worth $2 billion? we don't know how much it is worth because it depends how intelligently the assets are used. >> the value of the estate is not going to change what the judge decides or could it? >> no, it is not. it is an ongoing business and the beneficiaries are 80% the jackson family. >> we need this wrapped up with a bow tonight, jeffrey toobin. >> well, it's the legal system. nothing gets wrapped up quickly. >> we're going to be talking michael jackson forever. >> yeah, keep legal analysts in business. >> there you go. to weight in on this story join the live chat at ac360.com. i have been remiss. i swear i'm going to logon right now. still ahead, a discovery that may have solved an ancient mystery. virus hunter extraordinaire nathan wolf tracking the parasite that causes malaria. the disease kills 1 million people across the globe every year. just wait until you see where the trail led nathan wolf.

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announcer: millions of kids are using their energy wisely. tonight a possible major break in a medical who done it. a team of researchers has tracked down the origins of one of the deadliest killers on the planet. malaria. one of the authors of this just-published study is nathan wolf. you may remember him from our planet in peril investigation. he is a well-known virus hunter. in this case he focused on the parasite that causes malaria. he'll join us in just a minute. first "360" md dr. sanjay gupta has more. >> reporter: deep in the jungles of africa, nathan wolf is on the hunt. wolf is a pathogen hunter, looking to unlock the mystery of one of nature's greatest killers, the source of malaria. he has been at it more than a decade, working with people who hunt these forests to take blood samples of the animals they kill, animals that could provide

the answer. through the blood samples and work with research animals, wolf says he and his team have solved the riddle. >> there is a particular chimpanzee in here, max. what has max taught us about viruses? >> what we have found in max and a couple of other chimpanzees here and on the ivory coast is malaria parasites. give us the answer to an old riddle, namely what is the origin of malaria? where do they come from? the answer is actually -- >> reporter: max. >> it came from chimpanzees. yeah. >> reporter: malaria comes from chimpanzees. we can say that for sure? >> that's right. >> reporter: you are a virus hunter. a pathogen hunter. how hard was it to hunt malaria? >> we have been chasing this a long time. it was exciting to nail it. >> reporter: they nailed it by first identifying strains of malaria found in chimpanzees and compared them to strains killing humans.

it turns out genetically, they are nearly identical, except the chimpanzee strain is older. all of that suggest that chimpanzees pass malaria to humans. there is this interface between animals and humans so important because they can exchange viruses, pathogens, things you may have heard of like hiv, ebola, even parasites like malaria. the question is exactly how does that swapping take place? more importantly for researchers, what can they do about it? knowing the origins of a disease, even the close relatives to it, could be a huge step toward stopping it. more than 30 years ago, scientists used a close relative of human smallpox found in cows to create a vaccine for humans. whether the same will happen with wolf's discovery is still unknown. he and his colleagues believe it is a major breakthrough and only the beginning. >> we know very little of the diversity of microorganisms even within our own bodies let alone in other animals.

that is one of the things we are beginning to do. just beginning to describe this iceberg. we know a lot of it is under water. that is part of the excitement scientifically. >> one of the reasons the study is getting so much attention are the high stakes here. malaria kills more than a million people every year. many are children. we want to dig deeper with dr. sanjay gupta and nathan wolf. nathan, congratulations on this discovery. i know this is so important in the scientific community. for a lot of folks at home, i listen to all of this and say, wait a minute. malaria, where does the mosquito fit in here? >> sure. mosquitoes permit malaria to move from animal to animal. in this case, at some point, thousands, perhaps hundreds of thousands of years it was probably a single infected mosquito that fed on a chimpanzee and later fed on a human that permitted this parasite to cross over into humans.

>> that is amazing you can trace it back from that one mosquito. sanjay, medically, why is this so important? >> you mentioned a million or two die from malaria every year. 500 million get infected. i have had malaria. nathan has had it a few times. it is awful in terms of symptoms. i think sort of more to the point and curious what michael thinks about this. the fact you isolate a fapathog like this in chimpanzees, could you possibly be one step closer to creating a vaccine? we talk about mosquito nets and preventing malaria, a vaccine would be a huge, huge development in the world of malaria. whether that could happen or not, who knows but this puts us a step closer. >> you mentioned this is far off. this is an initial discovery, but is it hopeful we could see something like that in our lifetime or is it too soon to tell? >> i am hopeful. what sanjay says is true. if you compare hiv, let's say

hiv as something like katrina, like a hurricane. if you think about malaria, this has been hitting us for the last 1,000 years. it is an incredibly important parasite. it has been an incredible struggle to come up with an adequate vaccine that prevents against malaria. there are very few models, very few close living relatives to human malaria to compare and to be, perhaps generate vaccines through. >> like the smallpox, using cow smallpox to create the human vaccine. you mentioned this is the tip of the iceberg. what other diseases are you really focused on right now? >> we tend to be interested in two kinds of diseases. number one, things closely related to diseases that have viruss that are

had a huge impact on humans. retroviruses like hiv, malaria parasites. perhaps unknown ones. there was an interesting malaria parasite that started to affect those in southeast asia that jumped over. the second is things that are completely unknown. our ability to understand these agents has just begun. we have the tools that will allow us to do that. we need to do more field studies. we need to be out there watching when people get sick to see if these are novel things that cause people to be ill. >> i remember this from "planet in peril." you talk about the unknown viruses and the ability to jump quickly because of air travel. how much concern is there over spfrkally the unknown viruss? >> we have been talking about this a lot recently with h1n1, the swine flu virus. this is something -- we were down in mexico looking at this. i think nathan will find this interesting because he's ten years searching for the origins of malaria.

with h1n1, they think it may have come from this pig farm essentially in northern mexico. what's sort of interesting is that, exactly what you said. it starts at this really isolated location, finds its way into mexico city, hospitals, tourists there, and something that would have been in a very, very small part of the world all over the world. finding the origins of that, how it behaves, can provide valuable lessons. >> dr. sanjay gupta, dr. nathan wolf, great to have you both with us. congratulations. we look forward to hearing more of what you find. >> thank you very much. you can log on to ac360.com to watch an excerpt from "planet in peril." investigating how this deadly viruses spread. while there you can also find ways to stop malaria. just ahead, the face of evil. charles manson on the anniversary of the murders. the killings, the cult and the crime that gripped a nation. and a little later on, talk about an oops. a bad blowup.

the unxekd outcome of a botched bltding implosion.

in tonight's "crime and punishment" report, charles manson and the killing spree that cut deep into the american psyche. with his followers asking for freedom and speculation of more victims, the story continues to make news today. we are going to bring it to you

over this full week. ted rowlands takes us back to the crime that shocked the nation. >> reporter: the psychopath who carved a swastika on his forehead is 74 now. time has changed his face. but peer into the eyes. they are as dark as penetrating as they were when the world first met charles manson. it has been 40 years since the messianic madman and his disciples slaughtered seven people. and it began right here on gr ielo drive, a quiet, leafy cul-de-sac overlooking beverly hills. you see this security gate. behind it is a mansion. in the 1960s, a much smaller house was at this address. home to two rising hollywood stars. director roman polanski and his wife, actress sharon tate. at 26, tate was young, beautiful. she was also 8 1/2 months pregnant when the killers arrived on august 9th, 1969. on manson's orders, four members of his cult or the family as they were called, went on a

murder spree at the home with knives and guns. they took the lives of tate, a young caretaker and three family friends. before leaving, they left a message on the front door scrawled in blood. the word pig. the scene was horrific, but there would be more to come. y in the next day, manson himself accompanied the group to the home of supermarket executive lena la bianca and his wife. the house today looks very much the same as it did when the manson family entered the property and tortured the couple before killing them. again, more cryptic words in blood like rise and helter-skelter, a reference to the beatles song of the same name. >> i think the manson murders were the iconic crimes of the 1960s. they incorporated everything from the sexual fascination of manson with his many women followers to the beatles music of the day. the outlandish courtroom circus that the trial became.

>> reporter: manson was a 5'2" meglamaniac. he spent more than half his life behind bars before moving to california where he portrayed himself as a hippie and musician. he attracted the lonely, desperate. mostly women. they moved into an abandoned building on an old movie set outside of los angeles. what was behind the murders? >> manson said he did it to try to start a race war. his theory was that blacks would win in a race war against the whites. they would be unable to govern, and he would emerge and take over. >> reporter: in 1971, manson and four of his followers were given the death penalty, but the sentences were commuted to life when california abolished capital punishment. over the years, manson has turned his parole hearings into a circus filled with wild antics and ramblings. he will likely die in prison, a fate other members of the so-called family want to avoid. susan atkins, who has terminal cancer, was denied parole last year, but is up again for parole

next month. leslie van houten is also longing for freedom. this is what she said in 2004. >> i was raised to be a decent human being. i turned into a monster, and i have spent these years going back to a decent human being. and i just don't know what else to say. >> reporter: ted rowlands, cnn, los angeles. >> amazing. tomorrow, the manson killers. the woman who followed his orders to murder 40 years later. they say they've changed. you heard them asking for forgiveness. and they also want their freedom. should they get it? we'll let you decide tomorrow. for a full timeline of the manson murders and to see crime scene photos and more background, logon to our website, ac360.com. just ahead -- 70% of children in america are in need of an important vitamin. what is it and what can parents do? we'll have the answer next. >> plus, demolition disaster. find out where this implosion -- keep watching -- went terribly wrong.

just ahead, tonight's shot. a building demolition didn't

exactly go as planned. first, gary tuchman joining us with a "360 bulletin." >> bank of america has agreed to pay a $33 million fine to settle government charges it misled investors about bonuses for merrill lynch employees. the s.e.c. said as the bank bought the brokerage company it made plans to pay year end bonuses but did not tell shareholders. the president is praising the expansion of the gi bill. calling it the, quote, moral obligation. under the plan, the maximum benefit is a free education at various state colleges or universities. that's for those who have served at least three years in the military since the september 11th attacks. a new nationwide study suggests about 70% of u.s. children have low levels of vitamin d. it puts them more at risk for bone and heart disease. scientists say a poor diet is to blame, as well as not enough sunshine. and they have a contest for everything. even screaming. in thailand, more than 1,500 people tried to break the guinness world record for the

loudest scream this past weekend. one chimed in with a scream as loud as an ambulance siren. that was a few decibels short of the world record. >> short of the world record? >> erica, i think this is a competition i would be very good at. >> really? >> when i go into libraries, people who know me, run away. it's really something. i can yell loud. >> gary tuchman, the things we learn about you. that is an event that i don't really ever want to cover without earplugs. >> you want me to try it now? >> you could but they probably wouldn't be happy in the control room. wooelt we'll try it in the break. we'll move on to the "beat 360" challenge. a chance to show off our staffers by coming up with a better caption to the photo we post on our blog. a little taste of the fun and atmosphere at a festival in new jersey over the weekend. in case you weren't in this area, it rained like crazy on sunday. hence the mud. our staff winner tonight is elise. her caption, a little taste of levi johnston's new reality

show. very clever. my staff favorite, i have to admit. our viewer winner is ken who didn't tell us where he's from. very cagey. his caption, and with one final strategic move, the u.s. congress begins their summer break. >> are those democrats or republicans? >> that is an excellent question. i think it's a nonpartisan. >> let's say one of each. that would be a good way to do it. >> perfect. >> ken, your "beat 360" t-shirt is on the way. up next, a planned building implosion gone terribly wrong. we'll tell you where it happened. it's our shot of the day. you can probably see why. plus will president obama keep his campaign promise not to raise taxes?

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demolition disaster. check it out. a factory in turkey, which was supposed to implode. we know how these things work. it's obvious that one didn't work. instead of collapsing, you can see it tumbled over. i can't believe it's still in one piece. flipping over before coming to rest next to a residential building. incredibly, no one was injured. >> can you imagine being in the balcony of that residential building and saying, what's going on next door? >> you're thinking, i'm going to watch the implosion, like they do in vegas all the time. we've got popcorn. we're getting a building on our balcony. >> the luckiest people in turkey, the people in that building because, as you said no, one was hurt. >> you can see all the most recent shots at ac360.com. just ahead at the top of the hour, your future, your money, your taxes. will president obama be able to keep his promise not to raise those taxes for the middle class?