the door handle, everything else okay, right? nothing else is a problem, because you don't have time to address it if you get a positive answer. >> it's like it was i imagined 60 years ago. it's not a stressful work environment. kind of fun. >> well, doctors arena and denny are part of a nationwide alliance that physicians call ideal medical practice. they call it a norman rockwell approach to medicine. the "cnn newsroom" continues with fredricka whitfield in for kyra phillips. >> thanks so much, betty. unemployment down. layoffs down. economy, looking up? we're purring forward on bombshell reports from the labor front. more signs the recession is losing its grip. tempers, voices, blood pressures, spiking in the fight over health care. we'll shed some light on a fevered debate. we have to prepare for the worst. the honest answer is we don't know how bad this is going to be. >> swine flu in the schools. the feds provide a lesson plan for educators bracing for an

h1n1. hello, everyone, i'm fredricka whitfield in today for kyra phillips, live at the cnn world headquarters in atlanta. and you're in the "cnn and you're in the "cnn newsroom." -- captions by vitac -- www.vitac.com "issue #1" on day 200 of the obama administration, the president is due to speak in the white house rose garden later on this hour on an economy that is still very weak, but showing new signs of life. we'll get to those in a second. and earlier, he signed a $2 billion lifeline for the cash for clunker program, which should keep it up and running until labor day. his public comments are scheduled for 1:30 eastern time, and you'll hear them live, right here in the "cnn newsroom." all right, analysts have said unemployment would keep going up, and layoffs in july would top 300,000. instead, employers cut 247,000 jobs. the fewest since last august.

and the jobless rate fell from 9.5% to 9.4%. the rate hadn't dropped since april of last year. the u.s. labor department says this decline is due in part to job seekers giving up and dropping out of the labor force. so, even though the unemployment rate is down, there are still more than 14 million people out of work. that's roughly the population of tennessee and new jersey combined. but the good news is, there are jobs out there. felicia taylor is at the new york stock exchange with more on on that. which sect earnings are hiring exactly? >> well, there are a few, thank goodness, fredricka. the education sector is one of the top sectors that are actually hiring people. you know, people going back to school now. and as you mentioned, with that number, that unemployment rate, dropping to 9.4%, you might think that was a good sign, but hidden in that are people that might have retired, that have quit looking for work and those that have gone back to school.

so, that might account for why there are some education jobs. and health care and leisure and hospitality, recreation areas and restaurants ramping up the employment rolls. the government has added about 7,000 jobs. here's the surprise, though, we had jobs increase in the auto sector. they added jobs in july, about 28,000 of them. thanks to gm and chrysler, which exited bankruptcy so quickly. so, if you think about it, the previous cuts, though, in the auto sector were so deep -- and this is not funny -- there were actually fewer people to lay off during the normal seasonal shutdown period which takes place in july, so, for those people who are employed, good for you. the workweek got a little bit longer. employers increased hours worked to about an average of 33.1 hours, a record low from june. we're moving off of those levels. employers actually cut hours asking people to work a shorter week in order to keep them on the payroll. wages increased, not by a lot, but by three cents an hour, to

an average of $18.56. so, that's pretty good. >> not bad at all. all right, let's talk if we're looking for work, what states do we need to focus on? >> it's actually a little bit more widespread than you might actually have thought. most areas of the country are seeing improvement in the labor market. you can take a look at this map that we've got for you. the dark and light-blue areas are those areas where we're seeing most employment pick up. those have the most number of jobs per 1,000 residents. take a look where we see the darkest blue and the lighter-blue areas. the residents living near the orange and gray area, they have the fewest jobs to account for. look south to texas. health care and the oil-and-gas industries are the growth areas down there. don't forget, they got about $18 billion in federal stimulus money. so, then let's move out west to arizona. that state is benefiting from federal stimulus money as well. they were among the first to get funding for energy projects. also adding jobs in mining,

construction, and the financial sectors. so, also move down to southeast in florida. there's demand there for greater health care, which we've obviously seen an aging population, and in the insurance arena, we know florida, no jokes here, it is a retirement hot spot. then we've got some other states including colorado, where we've seen alternative energy, education and technology. so, there are areas of growth in the employment sectors throughout the united states. and, frankly, wall street likes what it's seeing so far. the dow is up 153 points and has held on to its gains throughout the afternoon. >> all right, encouraging news right there. thanks so much. good to see you. >> nice to see you. a day after the senate passed it, president obama signed off on the bill extending cash for clunkers! the rebate program began july 24th with $1 billion in the tank. about a week later, all gone. as people pushed, pulled, or dragged their older cars to the dealers. the department of transportation says it has recorded almost 185,000 sales so far.

and the white house expects today's $2 billion refill to last at least until labor day. so, what does this extra couple billion mean for the people buying and selling the cars? we're checking back in with earl stewart, you remember him, he's a toyota dealer in florida, who was selling a lot of cars under this program. good to see you. also, he's joined by cnn personal finance editor gerri willis in new york who has advice for consumers. earl, let me begin with you. you enjoyed the last month of huge sales, really exceeding your 2008 sales. now that there's additional money in the tank for this cash for clunkers, what do you expect this next month to be like? >> well, fredricka, it started out like a -- we couldn't believe. we had a showroom full of people this morning. i thought there might be a little slump because people were rushing in, in anticipation of the senate perhaps not passing, but with the new $2 billion, we're still extremely busy. our august is off to a record. we have sold about 50% of the

cars that we would normally sell in the month of august in the first six days. >> interesting. so, people are ready to buy. they lined up as early as this morning. not necessarily just to look, but they're qualifying. they have the cash, or money, in hand to actually get a new vehicle? >> yeah. fredricka, one of the most surprising things about this whole program to me was so many people with the clunkers, with the older, low-priced cars that have good credit. there are a lot of cash buyers, too, so we're having almost every clunker prospect, people that come in, qualified to buy, either pay cash or be able to get the financing. >> now, initially, you were a bit skeptical about this program, weren't you? >> well, that's exactly the reason why. a person driving a $1,000 or $600 car, you wonder how good their credit is. why they were driving this car? turns out they were second or third cars, sometimes cars given to grandchildren or children which are still in their name. now they can take the car back from the grandchild and trade it

in for a brand new car for a grandchild. >> what do you expect the month to be like, until labor day, possibly the money, the $2 billion extra, will allow folks to take advantage of the opportunity over the next four weeks, are you afraid the money might run out, that you just might be inundated with too many customers? >> i'm afraid of that. the pace started out so fast, it's too soon to say. but if it continues at the pace we've seen so far today, it definitely won't last until labor day. it will be out well before that. because we're exceeding the pace we did when the program first started. >> okay. gerri, let me bring you in to the equation here. so, there are some unintended risks here, right? i mean, we just heard, you know, that initially he was a little concerned that a lot of people may not be able to qualify, but, in fact, many of these customers could qualify. so, what are the other risks? >> well, i have to tell you, it is all about the money. and that's what i'm focusing on. look, cash for clunkers can give you a nice boost if you're looking to get a more efficient car, but no matter what the incentive is, you really have to

make sure you can afford the new car in the first place. let me show you a little example here, if you buy a car, average price on the car about $26,000. let's say you get the most you can from the government, $4,500. that reduces your cost to $21,500. if you finance it over four years, 7% interest, your monthly bill is $514 just for the car. so, you've got to be able to make sure you can afford it. it's something you can really take advantage of. remember, car are not like houses they don't increase in value over time. they get into accidents. you don't know it will be around another 20 years. likely it wouldn't. it's constantly losing value. the idea, don't overextend yourself, and make sure you can afford it. i'm sure as earl said there are people out there who can take advantage of it. but there also might be people involved in this program now that maybe they shouldn't be extending themselves right now. >> perhaps you have some advice for folks who are anxious to hit the dealerships this weekend. what questions do they need to

ask? what should their expectations be? >> number one, don't buy a car that's not within your budget limitations. let's face it, $26,000 is a whole lot of money. you can get a honda fit for about half the cost. don't forget to negotiate with the dealer. you know, last time earl and i were speaking together on this, he said, yeah, yeah, negotiate. just because you're getting incentives from the government, there's no reason to think you can't haggle on price. and look at the dealerships who are offering incentives on top of what uncle sam is offering, because there are a lot of them doing that, too. fredricka? >> thanks so much. >> my pleasure. >> before i let you go, earl, what are perhaps some of the questions that customers are asking you? and are they negotiating? >> yes. they're negotiating, but let me say, i agree with the former comments there. because i don't think they're negotiating hard enough. they should be at least three competitive bids on the car. one thing i recommend they do, keep the clunker out of the equation. don't tell them about the clunker trade-in. when the dealer see the $4,500, it's like dollar signs to him, it's profit.

negotiate for the car just as if you weren't you going to trade in a vehicle, and then when you get the best price after getting three competitive bids, then spring the clunker on on him, here's my qualified clunker, take off another $4,500 on the price you gave me. >> fantastic, you are looking out for your customers. i appreciate it. earl stewart, gerri willis, thanks so much to both of you. appreciate that. >> thank you. and perhaps you still have some questions about cars for clunkers or maybe even health care or the economy overall. we're going to the white house for answers later on this hour, send us your questions at mailtothechief@cnn.com or sweet us at kyracnn. the vice president's chief economic adviser, jared bernstein, will be here later on this hour to answer a lot of your questions. grassroots gripes over health care and what washington may or may not do to fix it. it's a make-or-break month.

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all right. there's suddenly a lot more room in the south carolina governor's mansion. the wife of governor mark sanford is moving out, and she's taking the couple's four sons with her for the school year. first lady jenny sanford says she's moving to a family home about 120 miles away from the state capital, but will continue to work on her marriage. back in june, the governor admitted to having an affair with an argentinean woman he called his soul mate. florida republican senator mel martinez is resigning, more than a year early. he sent a note to supporters today telling them he's quitting once a replacement is named. martinez had already said that he would not seek re-election next year. so, who will fill the seat? not governor charlie crist. crist is a leading candidate for

the job in 2010, but he says he will not appoint himself to replace martinez. get off of me! >> everybody back up. >> missouri, florida, michigan, texas, town hall free for alls, as the health care debate spills out of washington and into the heartland. lawmakers knew this would likely be a make-or-break month for reform, most didn't expect the constituent confrontations like this that are flaring up everywhere. democrats say the clashes are being orchestrated by conservative groups, and now big labor is fighting back. much more on that in our next hour. all right. first, though, shouting to be heard. shoving to be seen at a lawmakers' forum in tampa. our affiliate was in the thick of it. >> reporter: hundreds lined up, and at 6:00 it started off as a town hall meeting about an important issue.

>> when it comes to your health care -- >> reporter: but before congresswoman kathy castor could even begin getting through opening remarks, the protests began. all right, we want to take you straight to the rose garden. president obama. let's listen in. >>-- put americans back to work and build a new foundation for growth. last week we received a report on america's gross domestic product. a key measure of our economic health. and it showed marked improvement over the last few months. this morning we received additional signs that the worst may be behind us. though we lost 247,000 jobs in july, that was nearly 200,000 fewer jobs lost than in june, and far fewer than the nearly 700,000 jobs a month that we were losing at the beginning of the year. today, we're pointed in the right direction. we're losing jobs at less than

half the rate we were when i took office. we pulled the financial system back from the brink, and a rising market is restoring value to those 401(k)s that are the foundation of a secure retirement. we've enabled families to reduce the payments on their mortgages, making their homes more affordable and reducing the number of foreclosures. we helped revive the credit markets and opened up loans for families and small businesses. while we've rescued our economy from catastrophe, we've also begun to build a new foundation for growth. that's why we passed an unprecedented recovery act less than a month after i took office. and we did so without any of the earmarks or pork-barrel spending that's so common in washington. now, there's a lot of misinformation about the recovery act, so let me repeat what it is and what it is not. the plan's divided into three parts. one-third of the money is for

tax relief that's going directly to families and small businesses, for americans struggling to pay rising bills with shrinking wages. we kept a campaign promise to put a middle-class tax cut in the pocket of 95% of working families, a tax cut that began showing up in paychecks about four months ago. we also cut taxes for small businesses on the investments they make and substantially increased loans through the small business administration. another third of the money in the recovery act is for emergency relief that is helping folks who have borne the brunt of this recession. for americans who were laid off, we've expanded unemployment benefits, a measure that's already made a difference in the lives of 12 million americans. we're making health insurance 65% cheaper for families that rely on c.o.b.r.a. while they're looking for work. for states facing historic budget shortfalls, we provided assistance to save jobs of tens of thousands of teachers and

police officers and other public service workers. so, these two-thirds of the recovery act have helped people weather the worst phase of this recession while saving jobs and stabilizing our economy. the last third is dedicated to the vital investments that are putting people back to work today to create a stronger economy tomorrow. part of that is the largest new investment of infrastructure in america since eisenhower built the interstate highway system back in the 1950s. these are jobs rebuilding america, upgrading roads and bridges, renovating schools and hospitals. now, as we begin to put an end to this recession, we have to consider what comes next, because we can't afford to return to an economy based on inflated profits and maxed-out credit cards, an economy where we depend on dirty and outdated sources of energy, an economy where we're burdened by soaring health care costs that serve

only the special interests. this won't create sustainable growth. it won't shrink our deficit, and it won't create jobs. and that's why we've put an end to the status quo that got us into this crisis. we cannot turn back to the failed policies of the past, nor can we stand still. now's the time to build a new foundation for a stronger, more productive economy that creates the jobs of the future. this foundation has to be supported by several pillars to our economy. we need a historic commitment to education so that america's the most highly educated, well-trained workforce in the world. we need health insurance reform that brings down costs, provides more security for folks who have insurance and affordable options for those who don't, and we need to provide incentives that will create new, clean energy sources for our industries. that's where the jobs of the future are. that is the competition that will shape the 21st century, and

that's a race that america must win. so, we have a lot further to go. as far as i'm concerned, we will not have a true recovery as long as we're losing jobs, and we won't rest until every american that is looking for work can find a job. i have no doubt that we can make these changes. it won't be easy, though. change is hard, especially in washington. we have a steep mountain to climb, and we started in a very deep valley, but i have faith in the american people, and their capacity for hard work and innovation and their commitment to one another and their courage to face adversity. we've seen already that strength of character over the course of this recession. across the country people have persevered even as bills have piled up and work's been hard to come by. everywhere i go i have met americans who have kept their confidence in their country and in our future. that's how we've pulled the economy back from the brink.

that's why we're turning this economy around. i am convinced that we can see a light at the end of the tunnel, but now we're going to have to move forward with confidence and conviction to reach the promise of a new day. thank you very much. >> all right. no questions there being taken by president obama there in response to a slight dip in the unemployment rate. he's saying the worst may be behind us, talking about overall the economy, and he said the indicators, including today's drop in the unemployment rate, all point in the right direction. he said, quote, we're turning this economy around and do see light at the end of the tunnel. so, again, president obama there on the rose garden, about 30 minutes earlier than previously anticipated, but his message very short and sweet in response to the unemployment rate taking a very tiny dip. and you see there, the dow is up 157 points as well. it was so just before he spoke. we'll have much more straight ahead.

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your hands and cover your mouth when you sneeze! so, we've all heard the personal guidelines for avoiding the swine flu and just about everything else, but back-to-school time is right around the corner and some campuses are still reeling from the outbreak last spring. so, top health and education officials are meeting in washington today, rolling out the strategy to keep students and teachers healthy. cnn's senior medical correspondent, elizabeth cohen, joining me now. so, what's the update? >> well, last spring, some 700 schools closed, all around the country. and do you know what, you might not see that this fall. in the spring the cdc was much more likely to encourage schools to close down when they had students with h1n1, also known as swine flu. but, the cdc had a press conference today, where they said the emphasis is more on keeping schools open. they're going to leave it to the schools to decide when they should close, which means some schools will and some schools won't when they have a lot of children with swine flu. so, schools will make that decision. and also the cdc says that students and teachers can return to school if they've had swine

flu as long as it's 24 hours after the fever ends. they need to have been fever-free for 24 hours. also, the cdc is encouraging schools to teach good hand washing habits and respiratory etiquette. i'll show you what respiratory ed wet is. if i should sneeze or cough, i should turn away from you and turn into my sleeve. not my hand. because i might shake your hand. but into the sleeve. >> you mentioned the 24-hour fever gone. goss that mean you're no longer contagious? >> you know, it doesn't. that's a good point. some infectious disease experts i talked to are feeling a little bit concerned about this. you can shed the virus, which means you are still contagious ten days after the fever ends. they could be contagious even if they follow the cdc rules. it will be interesting to see how it plays out over the fall, because if you're only telling people to wait a day after the fever, that kid can still be contagious. >> yeah, of course, fall, winter

comes, that means people start thinking about vaccinations, when do you know you're a candidate, perfect candidate, for such? >> well, first they have to have a swine flu vaccine and it's on the way. they're testing it now. and federal officials hope it will be on the scene in the middle of october. now, not everyone will be able to get it when it first comes out. there is a priority list. so, let's take a look at the people who are supposed to be at the head of the line for the swine flu vaccine. pregnant women. everyone ages 6 months to 24 years. and parents of babies under the age of 6 months and their caregivers, too. also emergency and health care workers, and 25 to 64-year-olds who have underlying health problems, such as asthma. those are the folks who are supposed to be first in line. >> oh, okay. all right. very important to be very cautious. >> that's right. >> and know all the facts, that's right. >> elizabeth cohen, thanks so much. appreciate that. okay. let's talk hurricane felicia. already weakening as it tracks toward hawaii.

chad said that yesterday. that would probably happen. and here he is once again. so, folks feel a little bit more relaxed or, no, not yet? >> yes. the people on the other islands other than probably the big island, especially now in the industry of hilo, all the other people, it's going to be a rain event. but you know what, if you get 6 to 12 inches of rain in any city -- i don't even care if it's hawaii, and places in kauai get 400 inches of rain a year -- still, if you get it too fast, you can still get flooding problems. what has happened, fred, and we knew this was going to happen, rather than stay down here in the warm water and then turn like iniki did, this storm here, felicia, has moved on up to a colder pool of water which is right there. and as that colder pool of water has slowed the storm down, the storm now down to only 100 miles per hour. now, that's still a big storm, don't get me wrong. but it's not the 140-mile-per-hour storm that it was. 100 miles per hour, gusting to 120. it is still a major event here, if they were to hit land at this

point in time. that does not look like it's going to be the case. moving to the west-northwest at 13 miles per hour, and it's still going to go from a category 2 to a 1 to a tropical storm, to only a 30- to 35-mile-per-hour low-pressure center as it approaches the islands. that's the good news. here's what i think maybe is the other story. it would be the island chain right there. we'll put this into motion and i'll fly you down along. this is a very mountainous area, so if you get 6 to 12 inches on the -- on land and anywhere on an island, it's going to have to run down the one side. that's either the uphill side or the downhill side, and obviously with the wind coming in this way, if the storm comes somewhere in here, it would be the easternmost sides of the island, that would be the uphill side. those uphills sides will catch all the rain. there's the mountain area. here's the saddle road coming on down. all of this water would run down all into these cities and towns along the eastern shores of these islands.

still very far away. this is going to hit until monday, but we'll keep watching, fred. >> it will be a long weekend there for folks in hawaii. >> it will be. >> thanks so much, chad, appreciate that. >> you're welcome. in the meantime, we are waiting for a news conference to take place there out of illinois involving the burr oaks cemetery. remember, that was the cemetery that allegedly moved about 200 to 300 bodies and wanted to resale and, in fact, resold some of those plots of land. you're in the "cnn newsroom" and we'll take you there. great claims service and a 97% customer satisfaction rate. show people really trust us. gecko: yeah right, that makes sense. boss: trust is key when talking about geico. you gotta feel it. why don't you and i practice that with a little exercise where i fall backwards and you catch me. gecko: uh no sir, honestly... uh...i don't think...uh... boss: no, no. we can do this. gecko: oh dear. vo: geico. fifteen minutes could save you 15% or more on car insurance.

all right. remember the case of the burr oaks cemetery outside of chicago, allegedly the operators of that cemetery dug up about 300 bodies and them dumped them in a mass grave? now a live press conference involving that investigation. >> -- regularly seven days a week during the course of this. the fbi, i can't begin to thank them for the amount of time and energy and resources they brought here. without their help, i really don't know where we would be. the cooke county state's attorneys office were phenomenal as well as cooke county ema, the highway department, forest preserve department, everybody was very helpful. we've been out here as you know

for quite some time, many, many weeks. and during the course of those weeks, it's been a very trying time. but we're here today to inform the public that the evidence-gathering portion of this case is concluded as of today. as of today, we've collected over 1,200 pieces of evidence. most of that human remains that were collected over the course of the time that we were here. there will never be completion. for those individuals who are looking for every part of the human remains that were disinterred to be recovered, that is not going to occur. it cannot occur. and it's closure that a lot of people wish, we wish, but it's not going to occur. we feel comfortable in saying that this criminal conduct went on for four to five years, and during the course of that, many disinterments occurred. and we did the best we could to recover as much evidence as was

needed. we are now entering a different phase, where we are now trying to work with individuals and with groups, who will turn this location into an appropriate historic landmark and will be treated in the way, with the respect it should be treated. and many people are coming together to attempt to put that very thing together. a lot of time and energy has been put in to not only the criminal side of this, but also to trying to make this cemetery look the way it should have looked from the beginning. we have cleaned off every grave site. we have cleaned up all of the crime areas. we have done everything that you would want people to do to treat this in the appropriate way. we are going to show you some photographs that we have of some of the before and after scenes to show you just the extent of what we have gone through during the course of this. but we have completed the evidence side today. and i'm joined here with

numerous people that helped with us throughout this case, and first and foremost, i wanted to ask tom troutman to come up here from the fbi. tom? >> good afternoon. on behalf of rob grant, the fbi would like to express its heartfelt condolences to those were affected by the tragic events at burr oak. all the men and women in the fbi who worked along with the fbi and those who worked with us, the cook county sheriff's office, the major task force, and the cook county forest preserve, did so with a great deal of reverence, ever mindful of the fact that what we were recovering was more than just evidence, it was human remains. and we wish we could have fully identified all of the remains recovered to give some sort of closure to the families who were affected by this unfortunate occurrence. however, as we got into our

search efforts, we realized that doing so would be highly improbab improbable. even if we could have obtained a dna profile from a bone or bones or fragments thereof, then we would have the problem of who we would compare that with, not knowing who these bones belonged to. and, therefore, we'd be faced with the possibility of taking a sample from, you know, every viable relative we knew of that had a -- had a loved one or relative buried here in the cemetery. so, at that point, we began to focus our search efforts on -- on supporting the state's case and any possible federal charges. thank you. >> thank you. now, we're going to hear from roman, the receiver, the individuals in charge of the cemetery at this point. >> thanks. i would like to thank tom dart and all of the sheriff's staff as well as the fbi for the

excellent work that they've done in investigating this criminal scene. it is a sad situation that needs to be addressed. but one thing i've seen with them in the few weeks that i've been here is the great compassion and care that they've offered to the families that they have dealt with and with the remains that they have handled during this time. it is remarkable to see men of law like this with great compassion and great care. i've also had the opportunity in the last couple of days to meet with the newly formed chicago burr oak historical society. and they will address you in a few minutes as well. but it's also going forward with their efforts to talk about this cemetery now as an historical site that has great value and great importance to the african-american community that is of great importance. i pledged you to a long time ago that i would work towards the opening of this cemetery, and i

know that there is much anxiousness about that as to when the cemetery will reopen. and i'm sad to say at this point, i still do not know what date that is. there is much work that i feel needs to be done so that we can welcome families with great confidence that this is where their loved one is and take them very comfortably and without additional stress to the grave of their loved one. i ask for your patience as we move forward. i also ask for your dedication and help in moving forward. because we will need the help of the community through the politicians, through the church, through members of the community as we try to open the cemetery back up to the loved ones. thank you. >> thank you. and finally, we're going to hear from tony borough -- >> all right, you were just listening to the investigators there say that outside of chicago there, involving the burr oaks cemetery, that they

have concluded one portion of their investigation, which means they have collected about 1,200 pieces of evidence from this investigation, an investigation that stepped from the operators of this cemetery removing something like 200 to 300 bodies buried there at the cemetery and then dumping them in the mass grave so that they could resell those plots of land. this is an historic cemetery outside of chicago, some 7,000 bodies are buried there, including that of the 14-year-old emmett till, who was brutally murdered in mississippi back in 1955 and served as that murder -- it served as a catalyst in the civil rights movement. so, that investigation continuing, even though now they have ceased the collection of evidence there at that burr oaks cemetery. all right. well, you just saw president obama talking about "issue #1," the economy, and you've been sending us questions about jobs, health care, cash for clunkers

to mailtothechief. for some answers, jared bernstein joins me now from the white house. he is vice president joe biden's chief economic adviser. good to see you, jared. >> nice to see you, fredricka. >> so, give me an idea, how much did this dip in the unemployment rate become the catalyst for the president saying the worst may be behind us? >> well, probably less the dip in the unemployment rate, because that was driven not by adding jobs, but by folks leaving the labor force, no longer looking for jobs. remember, you only get counted as unemployed if you're actively seeking work. i think what the president was reflecting on there are a couple of very important data points, showing what we would characterize as less bad news. not good news, because you lose 247,000 jobs, that's not what we call good news. but when you compare the rate of job loss, which was about half now of what it was a few months ago, when you compare the rate at which the overall economy's contracting, which is about 1%

in the second quarter, compared to 6% in the first quarter, you really see the fingerprints of our program taking hold, helping to stabilize the economy. but stabilization is not recovery. he said, the number one issue is the economy, you're right. number 1-a, jobs and income for working families, and we're not there yet. >> now, we've been hearing from people from so many different forums via e-mail, and brian says, in all the discussions on the results of the stimulus bill, the white house has pointed out cases where jobs have been saved due to the bill. however, can the white house point out evidence of the job growth, not lack of loss, that was promised in the run-up to the bill? >> i mean, sure. it gets back to the same point i was making earlier. if you look over the prior, say, three months. let's smooth out some of the bumps in these data, we're talking about job loss of around 330,000 per month. far too much job loss. but if you compare that to the prior six months, at that point

we were losing somewhere between 657,000 jobs per month. we lost over 2 million jobs in the first quarter of this year. now, independent economic analysts, not us, not anyone here, folks out there in the economic community evaluating this stuff, tell us that the recovery act has added two to three percentage points to gdp and has added maybe something like 500,000 jobs that would have been otherwise lost in the second quarter of this year. so, what we can tell you is that the folks out there fixing roads, fixing bridges, the teachers, the cops, the firefighters that now have a job because of our state fiscal relief, helping very burdened states, these activities are absolutely helping to save jobs, as -- as the writer mentioned. >> all right. and this from twitter, and it pertains for the cash for clunkers program. isn't cash for clunkers another form of tax cut?

is it a tax credit? why not give tax cuts and allow americans to stimulate all facets of the economy? >> it's a fair question, and by the way, we cut 95% of working families' taxes with our making-work-pay tax cuts through the recovery act. remember, about a third of that bill, or around $290 billion, is tax cuts. but cash for clunkers is targeted something very specific, which is the very deep and significant contraction in auto demand and production for -- for vehicles in this country. and so, what you get there is kind of a two-fer. you're talking about a program that takes some polluting vehicles off the road, creates an incentive to do so, and helps stimulate auto production at the same time. so, it's much more targeted than the more broad kind of tax cut maybe with making work pay. >> and the question here about health care. the president has said that health care is certainly part of the economic picture. this from sonya, who says, what

insurance does the president and congress have and why can't the public get that same insurance? >> well, in fact, the -- the health care reform plan creates, as the president envisioned it, eats two important things that actually get you pretty close to what she's asking about. one is the public option. and the other is what's called a health care exchange. it's where people or employers can essentially go to a very clear, transparent health care market, where they, themselves, can shop for plans, one of which i think is actually pretty close to the one that she's describing. so, i think by dint of having the public option out there and the health care exchange, two very important pieces of health care reform that the president has consistently stood behind, you get -- you really do get there. >> and is the white house preing prematurely confident about the economy? >> if you listen to the president today, i think what you hear is a very, very

balanced view, and nothing that i would call confidence or overconfidence. i mean, confidence in the sense that our programs are taking hold and starting to stabilize the economy. now, to not observe that would actually be, i think, an economic as well as a policy mistake. you have to track your policies and make sure they're doing what you want them to do. they are helping to stabilize the housing sector. they're helping to stabilize credit markets. and now we see that we are losing fewer jobs per month than we were significantly fewer than we were a few months ago. but what the president made very clear is that we are nowhere near out of the woods, on any of these dimensions until we're creating robust, monthly job growth that really gives a lift to the living standards of working families. we're not there yet. but we're moving in the right direction. free-fall appears solidly behind us, and i think that's what the president was trying to say today. >> economic adviser, jared bernste bernstein, thanks for your time.

>> my pleasure. much more after this.

pakistan's most wanted

terrorist has been killed in a military strike. an aide to baitullah mehsud was killed. he was considered the leader of the insurgency and the prime suspect in the assassination of benazir bhutto. we smoke with stanley mcchrystal about the situation in mack stan. >> i would welcome pakistani liaison officers in a number of our headquarters to create the strongest connections possible. we already have a pretty good partnership. the stronger it gets, the better we are. >> reporter: have there been any operating with troops on this side? >> i am not going to talk about the specifics of where people operate but we do have growing links with the pakistani military. i think it is all good. a lot going on in the "cnn newsroom" today.

we are just getting started. stay with us.

we're pushing forward on one of california's new laws, nooses banned if they are threatening. this eresults into violence a at a town hall. what's really going on here? i think i'll go with the preferred package.

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pushing forward on health care or should i say shoving? across the world, detroit, dallas, tampa, tempers are flaring. lawmakers home on their august break. not everyone happy about that. make or break month for health reform is so far generating a lot more heat than light.

shedding light is what cnn does best. carol costello reports on who is protesting what and why. >> reporter: in a few cities across the nation, you can not escape them. sometimes there are dozens. sometimes hundreds. their mission, you decide? that's democratic congressman lloyd doggett trying to talk to a con stitt went about health care reform. >> the crowd certainly was angry. some might have had a negative reaction to the poster that said, lloyd doggett, trader to texas, devil to all people. i found it more amusing than i did something to be fearful of. >> reporter: but he did call the crowd a mob. he also claims it was orchestrated by the texas republican party. as for the state gop, it did admit to having a camera in the crowd thanks to an anonymous tip but denied organizing what it called a grassroots event.

also telling me doggett owes us and them an apology for calling the crowd a mob. >> we don't want them to yell and shoud down people. we want them to try to talk to the congressman. >> reporter: some democrats say the conservative group, freedom works, urges it's members to participate not in a discussion about health care reform but a shoutdown. >> you get some instances where peec people are so passionate about what's going on, they get caught up in the emotions an they start yelling or chanting. that's only because they are passionate about this. >> reporter: the democrats say plenty of like minded organizations want it to work out that way. that's why they list where town hall meetings will be held or operation embarrass your congressman celebrates making lawmakers look foolish. you could argue those sites don't leave out republicans.

there is one senator who was shouted out himself down at a town hall meeting. >> my preference would be to have it more sedate but, listen, democracy is robust and can be rough and tumble. nothing surprises me anymore. >> reporter: other lawmakers are adjusting, holding tell conferences instead of town hall meetings. they say they want an intelligent conversation. carol costello, cnn, washington. now comes word that organized labor plans to go head to head with anti-form activists. isn't possible to ratchet down the rhetoric? carry brown is a reporter for politico.com. give me an idea. i understand the white haus has been pressing democrats to brave

for this behavior. >> exactly. this week, the senate prepared three days worth of meeting fl at every meeting, it was sort of a going out there, trying to prepare senators, giving them tips yesterday. two top white house officials came to the senate, showed clips of some of these town halls and advised them to prepare for these events with which, maybe in the past they would call a meeting antsy who shows up and hope for the best. now, they are advising senators to prepare for them and get your supporters to come and prepare your supporters in case there is preparation. >> part of that preparation means trying to direct the dialogue? i guess the emphasis the white house wants made by the democrats is for them to concentrate these conversations on what it means to insured

americans as to what it means to uninsured? why would that mabke a difference? >> there was a lot of messaging. david axlerod passed out polling data that showed these are the popular messaging tips. you should emphasize that consumer protections, that individuals will not lose their insurance if they have a pre-existing condition that their out-of-pocket costs will be limited. steer it away from proposals that are controversial, such as the public option, which draws a lot of criticism. democrats were encouraged to talk about insurance reforms. they called it consumer protection to try to appeal to a couple of democrats, women, independents, world voters. >> is there any real dialogue or concern tas pertains to the white house and democrats talking about health care reform

as to who might be at the root of these disruptions or is that distracting from the message they want out? >> there has been a lot of discussion about that this week. the democratic party leadership has promoted the idea that these are groups that are being organized by washington lobbyists. i think we have heard some senators yesterday, though, say, there are people out there with legitimate concerns. people are not happy. we need to listen to them. it is throwing the democrats off their game a little bit. this is not, i believe, what they expected going into this recess. i think they expected some of this, give-and-take but to this level, it has cost them a bit. >> it's going to be a long, hot august. thanks so much. appreciate your time. >> thank you for having me. here is a health care fact that no one disputes these days.

fraud drives up costs for everybody. allan chernoff digs into that later on this hour. the worst may be behind us. a guarded prognosis on the u.s. economy from the man elected to fix it. as you saw here, a live last hour, president obama talked about an unexpected dip in the nation's unemployment rate and other recent signs that the recession just might be easing. cnn's dan lothian joins me now from the white house. all right, dan, talked to jared earlier, jared bernstein. the white house is not trying to gloating but don't want to undersell these glimmers of hope. >> reporter: that's right. there is no celebration going on at the white house. they have always been cautious when talking about the direction this recovery is going in. it was interesting to listen to the president, the remarks that he made, not long ago, really striking what sounded like a very strong, optimistic tone about the direction of the

economy. i just wrote down some of the quotes that jumped out at me. today, we are pointed in the right direction. as we begin to put an end to this recession, we can see a light at the end of the tunnel. certainly, the president, this white shohouse everyone encoura by the white house numbers. >> we have a lot further to go. as far as i am concerned, we will not have a true recovery slons we are losing jobs. we will not rest until every american looking for work can find a job. i have no doubt we can make these changes. it won't be easy. change is hard, especially in washington. we have a steep mountain to climb. we started in a very deep valley. i have faith in the american people and their capacity for hard work and innovation and their commitment to one another and their courage to face

adversity. >> spokesman, robert gibbs says he still expects the unemployment numbers to hit double digits at some point in the future. the analogy that he uses is a patient that had a life threatening illness, that patient has been stabilized but they will have good days and bad days. >> dan lothian at the white house. thanks so much. appreciate that. analysts expected unemployment would keep going up and layoffs in july would top 300,000s. instead, employers cut 247,000 jobs, the fewest since last august. the jobless rate fell from 9.5 to 9.4%. the rate had not dropped since april of last year. so before you celebrate, analysts say the drop is due, in part, to job seekers actually giving up and dropping out of the labor force, perhaps just taking part-time work. labor secretary hilda solis says

jobs are out there. >> here is an opportunity to look in health careers and i.t. and those other emerging industries. we are starting to see some -- pick, in allied health care careers and also nit and renewable energy. you have to think about those people that lost their jobs that may not be coming back here but could get into, say, solar energy types of positions and also any renewable energy type of job that could help provide them with a lasting income and one that will bring them up anywhere from 10% to 20% in their earnings. that's something that is realistic. the president this week issued $2.4 billion in the creation of lithium batteries. we are putting money toward research and development. there will be job creation. >> as dan lothian just reported, the administration still expects unemployment to rise perhaps hitting 10% before recovery takes hold. millions of you graded president obama on his 200 days for cnn's

national report card. in about 20 minutes, we will get the tally from cnn's tom foreman. for now, cash for clunkers gets an incomplete earlier today. president obama signed off on a $2 billion extension of the rebate program. does that mean that you should troush ju rush to junk your clunk kers. let's bring in gerri willis. >> the bottom line is one of the reasons that the u.s. automakers are in trouble is because people took out car loans they couldn't afford. last year, almost 25% of americans who bought a new car still had an average $4,500 in negative equity when they traded it in. here are some rules of thumb to figure out if you can afford it. your monthly payment shouldn't be more than your 20% of your after-tax monthly income, not talking about gas, insurance or maintenance. stick to a loan term of 48 months, don't go out 60.

aim to put down 20%. this reduces the size of your loan and your monthly payment. you can calculate how much you can afford that edmonds.com. some dealerships are offering cash incentives to get you to bichlt you may qualify for cash rebates because you are affiliated with a specific employer, credit union or university. don't forget, a lot of new car buyers will qualify for a federal income tax reduction. back to you. >> thanks, jerry. a painful reminder of america's racist past. the hangman's noose. one state moved to bar its display but there is a loophole.

it's the chevy open house. and now, with the cash for clunkers program, a great deal gets even better. let us recycle your older vehicle and you could qualify for an additional $3500 or $4500 cash back on a new, more fuel-efficient chevy. your chevy dealer has more eligible models to choose from. more than ford, toyota, or honda. now get an '09 silverado for under twenty eight-five after all offers. and get it for even less if you qualify for cash for clunkers program. go to chevy.com for details. keeping kids out of trouble when there isn't much for them to do. today's cnn hero is doing that with music. we will meet him next.

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two first for judge sonia sotomayor. she will be sworn in as the first hispanic justice on the u.s. supreme court and the first time the high court ceremony will be televised. she easily won senate approval

yesterday. president obama praised the vote as breaking another barrier and moving as yet another step closer to a more perfect union. sotomayor is the first democratic nominee added to the court in 15 years and also just third woman in the court's history. a year in jail and a fine of up to $5,000. that's the penalty for anyone convicted under california's new anti-noose legislation signed into law. it barred placing such displays on school grounds, work places or someone else's property but a stipulation allows homeowners to put up such a display under free speech protection. the law is set to take effect new year's day. we would love to hear what you think about california's new anti-noose law. he can tweet us at cnn.

with the nation's highest murder rate and one of the highest crime rates, new orleans is still struggling after hurricane cat tree ya nah. two murders involved kids who were just 14 years old. cnn's hero of the week is fighting hard to keep kids off the streets and out of trouble using the power of music. music just always been with me. i love to play. i keep drumsticks in my hand. the music in new orleans is dying fast. life after katrina is really hard for a kid, violence, drug life. i'm just tired of it. my aim is to get kids off the street. my name is derrick and i thought of a free music education program for the kids in new orleans. we do more than just teach music. we offer transportation,

instruments. i feed you so you are not hungry. we call it the no excuse policy. you don't have no excuse why you are not here. you don't have to have any experience. we need it five days a week year-round. you constantly learn stuff new. that's what keeps the kids coming back. >> i was getting in trouble. now, when i'm here i practice. when i'm home, i practice. >> i love seeing kids happy, just having fun. >> the future of these kids is culture. i don't say i am saving life. i say i am giving life, a whole different life of moouts music. pretty extraordinary guy, pretty extraordinary effort there. you can find out more about derrick tabb or any of our

heroes on our web site cnn.com/heroes. we will be announcing the top ten cnn heroes in a few weeks of 2009. he was the man behind such movies as the breakfast club, planes, trains & automobiles and "home alone." a look back at the career of hollywood's john hughes. ó@@@ you'll love it. your old mop will just have to get over it... [ engine rattles ] [ man ] love stinks! ♪ love stinks! ♪ yeah! yeah! [ female announcer ] new swiffer wet jet is redesigned. it cleans deep in corners. its solution penetrates layers of dirt and its absorbent pad locks it away

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hush cane hurricane felicia becoming more of a flooding threat as it comes closer to the hawaii islands.

>> this has been out in the middle of the pacific making winds of 140 for a couple of days. it is significantly getting smaller. i am just going to zoom in as far as i can go on this thing. the eye is completely gone now. what was the eye back here has n now basically lost all of its intensity. it is now just basically a wavemaker out here. you see some of the waves hitting the west coast of the u.s., especially the west coast of mexico. what the story is is that the story did not stay south in the warm water. it went to the north into the cold water. it takes warm water, above 80, 82 degrees to keep a hurricane going and certainly to keep it going that strong. when you lose the intensity of the water, you lose the heat, you lose the intensity of the storm. now, that said, what else could this do? it is still going to have some momentum when it approaches the hawaiian islands even if the

winds are only 30 miles an hour. it will matter how it approaches the hawaiian islands, what happens when it gets there. will it travel to the south making all the winds come in from this direction and blow the water on to the northeastern shores of the island. will the storm, let's change this up, will it go north of the island? if that happens, the winds will be going this way on this side of the storm but, in fact, this way on the opposite side or the south side. maybe all of the western shores, all of the western beaches will get that relative storm surge. it could only be a couple of feet. if you have been to hawaii, that's where the cities are built, just a couple of feet above sea level. let's get to this one. let's get to the case of the scenario when it moves to the south of the island and blows the water close to. the big island here. what would be the worse case scenario. you have two large mountains, mauna kai and mauna loa.

you have it in this doughnut. this water could be coming in to the city pushing up along the beaches. you have two mountain ranges 14,000 or so feet high. all that rain is going to go up the mountains. the rain is going to come out and fall on these mountain peaks and the water will have to go down to the ocean. that could cause flooding there when you only have a 30 mile per hour storm. waves, i am sure there is going to be waves. you had a giant storm out there. those waves are somewhere and they are propagating to the islands right now. >> that's a real mess. there air lot of houses on that edge there at the bottom of the mountains. >> have you been on that saddle road? >> i have. it's a beautiful drive. i happened to be there when it was raining. that's how i know. >> i had a wife six months pregnant on that saddle road. that wasn't the smartest thing i ever had done. >> careful.

lovely memories, nonetheless. >> thanks a lot, chad. appreciate that. one day after four employees were indicted in chicago's cemetery plot for profit reselling scandal, the cook county sheriff and the fbi announced the evidence-gathering portion of their investigation is over. they have undercovered 1,200 pieces of evidence that went on for five years and they admitted they were unable to identify sop of the remains, however, recovered. four-and-a-half months of captivity. we will get an update from laura ling and euna lee from laura's sis st sister, lisa. yeah. i'll contact emergency services and stay with you.

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so we asked you to grade president obama as he wraps up his second 100 days in office. cnn's tom foreman shows us at the magic wall. >> here are the results. for the general handling of the economy, a c minus almost all across the country. not looking very good. i am going to circle an area. this area really matters. let's look at what happened that made such a big differences. i want to go to a particular date. we go up here to the 17th. listen to what the president was saying about health care reform. >> so this is what health insurance reform will mean for the average american, lower costs, more choices, and coverage you can count on. >> he has been trying to sell that message over and over and over again. if you go back here, here is joe

biden talking about the overall economy. >> there was a misreading of just how bad an economy we inherited. i'm not laying this -- it's now our responsibility. so the second question becomes, did the economic package we put in place including the recovery act, is it the right package given the circumstances we're in? >> so those were the messages coming out of the white house. this was the result. they got hammered on the economy and, look at this, on health care. this he really got hit. they got hit by this part of the country. why? that's part of the older part of the country. more people here are older than elsewhere. these are people that gave them much better ratings earlier on when the question was, how do you handle swine flu? they liked it. older people wanted care on that. the combination of health care and overall economy really beat them up quite badly. when you move down the line here to the overall ranking of president obama, you see what happens. he winds up with a c minus, even

in his home state of hawaii down here. the best he can do is a c plus, not the kind of ratings he wants, especially when you look back 100 days and you see back then much, much, much higher ratings all the way around. >> what a differences 100 days makes. august, possibly a make or break month for health care reform. the senate has been trying to push forward on the issue that the top item on president obama's domestic agenda, bills in the senate and one already improved in the house are meant to dramatically expand health insurance coverage while getting spending under control. there is a major gap in washington's plan as senior correspondent, allan chernoff reports. >> reporter: the problem is fraud. tense of billions of dollars is lost to health care fraud every year, a major reason our premiums keep rising and medicare and medicaid are draining the treasury. for all the talk in washington of controlling health care costs, the issue of fraud is

getting little attention. theresa knew her podiatrist was cheating blue cross blue shield of michigan. dr. jeffrey cook had billed thousands of dollars to surgery remove dozens of warts when she only had a discolored toenail. >> it was like robbery. they were overcharge forg a procedure that wasn't done. she called blue cross which inve investy gated, leading to the arrest and imprisonment of the podiatrist the. health care fraud, perpetrated by doctors, pharmacists and organized crime gangs is rampant. medicaid paid nearly half a million claims posing as doctors who were dead. such fraud costs every american. it drives up prices for medical insurance, treatment, and drugs. >> i think it's a domino effect. somebody has to reimburse for

it. ultimately, it gets passed down. >> reporter: that's why major health insurance companies have special investigations units to we'd out fraudulent claims. they estimate prafraud accountsr a minimum of all health care spending. others say the figure is more than three times that much, topping $200 billion. >> if we do not reform health care, your premiums and out of pocket costs will continue to skyrockets. >> reporter: president obama warns that health care is needed to get medical costs under control. one of the biggest culprits, fraud, is little mentioned in the efforts. >> they aware of this problem. they don't seem to know the magnitude or the seriousness. they don't seem to be acting with the kind of urgency i would like. >> reporter: the health reform bill approved in the house,

1,018 pages long devotes only 40 pages to theish yoo you of fraud. it would add $100 million to combat fraud, waste, and abuse. that's the amount of health care fraud occurring in this country every 12 hours, using the most conservative estimate. that level of corruption is one of the big reasons our medical bills rise steadily every year. the big push has been to provide health coverage for more americans. experts warn, if fraud isn't addressed more aggressively, american taxpayers will be paying billions more than needed to provide health insurance for those who don't have it. allan chernoff, cnn, new york. florida republican senator, mel martinez, is resigning more than a year early. he sent a note to supporters today telling them that he is quitting once a replacement has been made. he already said he would not seek re-election next year. so, who will fill the seat? it won't be republican governor

charlie crist. he is a leading candidate. he said eel not appoint himself to replace martinez. pizza feast and family time. that's how laura ling and euna lee are spending there first two days at home. they flew home wednesday after almost five months in detention. laura's sister, fellow journalist, lisa ling, tells cnn, the woman have some jaw-dropping stories to share. among them, the incident that led to their arrest. >> it was something that, you know, they were never planning to do originally. i said this before. when they left u.s. soil, they never intended to cross into north korea. they -- she said that it was maybe 30 seconds and then, you know, everything just sort of got chaotic.

>> lisa ling says laura and euna were treated humanely by the north koreans possibly because of some medical issue. fade to black. hollywood is mourning the loss of renown writer, producer and film director, john hughes. he will be best remembered for his hugely popular coming of age comedies. he boosted so many acting careers. take a look from thelma gutierrez. >> reporter: in coming of age comedies like "sixteen candles," writer, director john hughes showed american teenagers coping with real-life social problems. most of his teen stories were set in shermer, illinois, a fictional town. 1985, "the breakfast club" centered on a group of high schoolers who bond over weekend

detention. it fueled the careers of the brat pack stars like molly greenwald. romantic teen dramas like "pretty in pink" and "some kind of wonderful." he eventually graduated to the ad dultd world writing and directing planes trains & automobiles with steve martin and john candy. he carved out a nearby with "beethoven" and the wildly successful ""home alone."" he retreated from the hollywood spotlight occasionally contributing the odd story idea. he will be remembered best for the films in which a generation of teenagers saw themselves. cnn, hollywood. cutting health costs by slashing expenses.

two rhode island doctors go back to basics and their patients say, it shows on the bill. taking its rightful place in a long line of amazing performance machines. this is the new e-coupe. this is mercedes-benz.

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it's a make or break month for health care reform. some of the biggest unscene costs are overhead, staffing, paperwork, salaries. so whatever happened to affordable family doctors, small practices and house calls? photo journalist, bob controlly, puts health care in focus with a pair of doctors reviving the old ways in rhode island. >> my partner, lisa and i, opened a small practice, a year and a half ago now. when you walk in the door, you are going to see an arrangement of flowers where you normally would see a secretary sitting. there is no staff. >> we don't have a secretary, we don't have a nurse. we don't have an office manager. >> you are probably not going to see other patients because we

don't double book. we put the bell there, because we got tired of hearing people say, are you there? >> we are called ideal medical practice. >> how have you been? >> having fewer patients in your practice allows you to spend more time with them. the idea is to lower your overhead so that you can spend more time with patients, really focus on quality care. >> this is a practice that's been completely redesigned. >> what can i help you with? >> we use computers a lot to do what a staff does. we can click a button and our prescriptions get sent off to the pharmacy. we can push a button and our referrals get faxed over. our computer automatically e-mails patients before their visit so we don't have to call each one. we wanted to be the kind of doctors that we were trained to be. with he both really value the relationship with our patients. >> we're doing a home visit for

a newborn. he needs a weight check. he is two weeks old. you can learn a lot by going to people's homes. yeah, this is it. >> hi. >> hi. >> how are you doing? not many people do house calls. >> it is great for the patient, lovely for a mom with three toddlers. >> it's hard to get out the door with a newborn. so it is nice to have them come to you. >> see you guys. bye-bye. this is what the medical assistant usually does. >> the traditional primary care doctors office need to see patients quickly, every ten minutes in a traditional setting. i think that's where you have the doctor holding on to the door handle saying, everything else okay, right? nothing else is a problem, because you don't have time toed address it. >> it is like it was 60 years ago. it is not a stressful work environment, kind of fun.

preparing for the spread of the h1n1 flu, the government unveiled updated guidelines for schools. many schools were forced to close during the initial outbreak this spring. today, they are saying schools should only be closed in extreme situations. here are some of the guidelines. kids with the flu, should be kept at home and away from school and the mall, of course. it goes for teachers and other school staff. they should stay home for at least 24 hours after the fever breaks. schools should regularly clean areas that are likely to have a lot of hand contact. also, school should consider active symptom screening for kids as they arrive at school in an effort to catch illnesses early. if you are planning to hit the stores for some back to school shopping, this is the weekend to save on sales tax. so many states.

jeannie has the breakdown from new york. more than a dozen states are offering taxfree holidays this month on clothing and school supplies. ten of those will occur this weekend. today, tomorrow, and sunday -- excuse me. today and tomorrow in iowa and louisiana. the other eight states include today, tomorrow, and sunday as well. now, how much you will save depends on the state. in virginia, you don't have to pay sales tax on individual clothing items topping less than $100 or on school supplies under $20. in louisiana, you can buy pretty much anything under $2,500 and avoid sales tax. they have sales tax exemptions on computers. if you are in the market for a new pc or laptop, this could be the weekend to buy. fred? >> we know consumers love these taxfree holidays. aren't they a mixed blessing for certain states? >> without a doubt. states are losing out on a big

chunk of tax revenue. with budgets so strapped, a lot of states are rethinking whether or not to offer these temporary tax breaks. florida, massachusetts, and maryland have all decided against august tax-free weekends this year. washington, d.c. was supposed to have one this week. it pulled out last week saying it would have cost the city, $640,000 in revenue, a loss it can't afford when it is struggling with a deficit of more than $660 million. so, fred, a lot of d.c. residents are very likely to head across the river to virginia for the tax free holiday that is taking place there this weekend. it could backfire on the city. >> that's just a hop, skip, and jump for the folks in d.c. >> a lot of folks are probably pretty understanding of the crunch that so many cities and states are facing. so, jeannie, thanks so much, appreciate it. >> in the meantime, california bans the public display of

nooses. what do you think about that? we'll have your comments straight ahead in the "newsroom."

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five more u.s. troops killed in afghanistan making 12 this month. july saw 44 troops killed. the new cnn opinion research poll shows support for the war has hit a new low. 44% of americans say they favor the war, down nine points from may. 54% oppose it. we are not at war in pakistan, unless you count missile strikes from a drone aircraft. a strike on wednesday is believed to have killed the leader of the pakistani taliban baitullah mehsud. his reported death came up moments ago at the white house. >> we have obviously seen

reports, even by members of the taliban, that baitullah mehsud is dead. we can't with 100% certainly verify that. what i will say is this, if the reports of baitullah mehsud's death are correct, there is no doubt the pakistani people are safer as a result of it. >> in march, the u.s. put a $5 million bounty on mehsud's head. rick sanchez coming up. what's going on? >> you know, this is something that's real special and it is something that i am very protective of. when a woman, a mother, loses her son in war and says to you, mr. sanchez, come to my house, i want to tell you my story, i want to sharon on this any's story with the rest of the country and you are invited to bring your cameras to arlington national cemetery to watch him be buried, you know, god bless

her. she is special. we are going to honor her request. i think we have some video now that i can share with you. this is from arlington national cemetery. you will see it in its entirety today. that's anthony lightfoot. we usually don't show you these things. for the past nine years or so, we have been pretty much prevented from showing you these things. now, we are, because the parents say, we want you to. we are very respectfully showing you this. that's her, by the way. >> receiving the flag. >> she is a 22-year-old veteran. her son decided to go into battle and he died there. she wanted to tell this story, because she thinks all americans should know of her son's sacrifice. she says, his sacrifice stands for the sacrifice of so many others. she wants to make sure they are not forgotten. who can blame her?

>> what an extraordinary invitation and a very difficult, sombre moment for this family and lots of families across the country. >> dave johnson and michael heard on my staff have been working on this for quite a long time. we have really put a lot into it. we are proud of this. we think it is respectful. we think it is nice. we are looking forward to sharing this. it is going to be almost an entire half hour of our newscast we are dedicating to her story. >> we look forward to that. our hearts go out to that entire family. >> thanks, fred. >> rick, appreciate that. earlier in the "newsroom," we told you about a new law in california outlawing the threatening display of nooses. we asked you to send your thoughts. here they are. biggest loser 3 writes, i've got just one question. when is a noose not a threatening display. stone of age says this, we are a community nationwise. laws should promote free speech but stop, hate, murder and

assau assault speech encourage discussion, not battery. ralph put it this way. we have to lighten up just a bit. everything is offensive. just live and let live. i'm in l.a. stop the madness, he says. thanks for all of you for your comments. they told police they had seen stuff like this on television. young rape suspects questioned after that attack on an eight-year-old girl. we have the latest from cnn. the algae are very beautiful. they come in blue or red, golden, green. algae could be converted into biofuels... that we could someday run our cars on. in using algae to form biofuels, we're not competing with the food supply. and they absorb co2, so they help solve the greenhouse problem, as well. we're making a big commitment to finding out... just how much algae can help to meet... the fuel demands of the world. i just want fewer pills and relief that lasts all day.

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new details in the phoenix child rape case. the horrific gang rape of an eight-year-old girl by four neighbor boyce. the girl stays in police custody after the police reported that her parents blamed and disowned her. the latest from marissa win gait of ktvk. >> reporter: there are disturbing new details an eight-year-old girl lured with a gun into this apartment shed where police say four fellow liberian refugee boys raped her and she was screaming to stop and it was hurting her. it is the reason liberian

ambassador, edmond is in phoenix. >> we want to talk as liberians so we can know the facts. >> reporter: police say the facts are now in the report in the hands of the ambassador. it describes the father blaming the daughter saying it is his fault and telling investigators he did not care if his daughter ever returned to their family. they say the father was yelling at his daughter saying she is always going outside at ruining their chances of getting citizenship. investigators say the mother tried to drag her daughter into the apartment by the ear. >> nothing happened to my daughter. >> reporter: to us, the parents denied a sexual assault even happened. when we asked what should happen to the suspects. >> nothing. >> reporter: the ambassador took

a tour of child health where investigators interviewed the victim's father. he was attached and told officers he has a tv and dvd player. there was no reason fors his daughter to go outside. >> i think it is important to recognize that act does not reflect their culture. >> i have heard of two evictions because they say, we pt don't want repeats around her. >> reporter: the ambassador hopes miscommunication is what caused this. >> the deputy ambassador said his meetings with phoenix police showed him they have conducted a fair, unbiased investigation. i'm fredricka whitfield. rick sanchez is up next. our cnn special war coverage. the story of a journey home from a battlefield, unlimited access, an exclusive interview with the grievingom