blitzer. he said he might even work with wolf blitzer one day. i expect he will sooner rather than later. join us on "the situation room" from 4:00 to 6:00 p.m. every weekday and on sundays from 6:00 p.m. to 7:00 p.m. first up, a major hurricane scrapes the northeast for the first time in years and the first family heads into the path of the storm. global outrage, imagine the guy who blew your loved ones up on an airplane and he is released from prison early to a hero's welcome. how compassionate is that? war zone at home, gangs and thugs run rampant, families lose children it seems every day, but they refuse to be victims. can we save chicago's deadly streets? hello, i'm don lemon, weakening but still dangerous.

that is the tropical storm warnings and huge waves are crashing into east coast beaches this hour. bermuda felt the punch earlier with power outages. this weekend could be a deadly one for east coast beachgoers who venture into the dangerous rip currents spawned by the storm. straight now to jacqui jeras, keeping a close watch on it all. >> the waves have been incredible today, we have seen lots of video of surfers and crashing waves and the threat of rip currents out there and that's the biggest issue as we deal with bill. it has weakened, but the winds are 85 miles an hour. that's nothing to sneeze at. and look at how big this thing is, it just fills up the entire ba basin right there from cape h hatteras all the way up to new england. bill is less than 300 miles away

from the u.s. main land and the closest approach is about 150 miles in our best estimate. it will come through while you're sleeping, but we could see some 40-plus miles an hour winds in cape cod and martha's vineyard. the worst of it is over for the southeast, but really picking up now across parts of the northeast. we're seeing the showers and thundershowers that are beginning to make their way on to the coast now and even some severe weather here in the mid-atlantic states. but that cold front is knocking bill out of here and preventing u.s. landfall. watch for those winds to pick up in the coming hours. showers still heavy and we have had some problems with flash flooding, so use a lot of caution if you do have to travel at all. check out our i-report. this is from michael black, our i-reporter from new jersey, he said there were at least eight

to ten-foot breakers out there. he had a good time, but hopefully he stays safe. >> it looks fun, but it's very dangero dangerous. the top five executives at qwest communications will no longer be paid for memberships. the official line from the company, the allowances were eliminated to provide transparency to shareholders. they were getting $75,000 a year to pay for things like financial counseling. car lots are reporting brisk business ever since congress gave the rebate program an injection of $2 billion now

everyone seems to be rushing in to trade in their old clunker for a new fuel efficient vehicle. some say the government simply isn't paying them. hurricane bill shouldn't be a problem for president obama as they arrive in massachusetts. the first family headed for camp david recently, they leave for martha's vineyard tomorrow morning. meanwhile obama is using his weekly address to the nation to talk about health care and to talk back to his contribute tix. he says his political opponents are misleading the public. >> we have had a vigorous debate about health insurance reform, and rightly so, this is of vital concern to every american, and i'm glad that so many are engaged. but it also should be an honest debate. not one dominated by willful misrepresentations.

dr. tom price delivered the republican response, he called the status quo unacceptable. but he also says americans don't like the democrats' plan. >> i can tell you that washington is incapable of processing the personal and unique circumstances that patients and doctors face each and every day. that's why a positive solution will put power in the hands of patients, not insurance companies or the government. >> the u.s. deficit will reach about $9 trillion over the next 10 years. that's according to a new budget forecast the obama administration plans to put out next week. as the deficit balloons, the president's health care approval rating deflates. could this be the tipping point for the administration? tom foreman digs deeper. >> reporter: the new deficit news can only throw more gasoline into the firestorm over health care reform. the president's signature issue is exhibit a for those who say he is spending recklessly.

and a new poll now shows more disapproval than support for how he's handling the issue. he blames the opposition. >> i would love to have more republicans engaged and involved in this process. i think early on a decision was made by the republican leadership that said, look, let's not give them a victory. >> reporter: but independent voters who were so hot for mr. obama's election have also grown decidedly cooler, many because of the ballooning deficit and what some see as a massive spending spree. look at this, the northeast is the only part of the country where health care reform had broad support when we measured it recently, and this is a democratic stronghold. out here in the west, it only has 50% support and the rest of the country is against it even though some of these states contain large numbers of

uninsured families. >> reporter: many of those states have lots of uninsured people. >> they think about it, they talk about it, it's on their mind every day and they have not had a very clear explanation from washington about how the health care overall would affect their lives. >> house speaker nancy pelosi says a government-backed insurance program is a must. >> reporter: but fiscally conservative democrats have been warning for weeks that a deficit bomb could cripple their parties in elections next fall. s s steny hoye ore -- >> there is a saving in providing the basic treatment for everyone. >> reporter: but the latest deficit news, one way or another

will almost certainly intensify the fire from right, left and center. tom foreman, cnn, washington. hero's welcome for a convicted terrorist that ticks off the fbi as well as tony blair. plus we'll have this for you. >> if you come up through killer town, if people don't know who you are, we could get shot right now. >> we head right into the middle of chicago's deadly streets where people are desperate for solutions to curb the violence that's taking over many neighborhoods. and here's some stories that you would like to see, twitter, facebook, myspace or ireport.com. say it again! what? say it like, "mmmm, these healthy choice fresh mixers taste freshh!!" they taste fresh... wait. what are you doing? got it. you're secretly taping me? you were good too! but you know, it wasn't a secret to us, we knew...

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new revelations tonight about allegedly harsh interrogation techniques during the bush administration. u.s. interrogators threatened one suspect with a gun and a power drill. the magazine says the details are contained a cia inspector general's report. a federal judge has ordered it released next month. robert moeller is blasting a scottish executive who released the lockerbie bomber. abdelbaset ali mohmed al megrahi was released on compassionate

grounds. but moeller isn't working up much compassion. he calls al meg are here's release -- your action makes a mockery of the grief of the families who lost their own on december 21, 1988. you could not have spent much time with the families, certainly not as much time as others involved in the investigation and prosecution. where, i ask, is the judge? a deal was cut with libya for al m megrahi's release. >> as i used to say to them, i don't have the power to release mr. megrahi, and the release that has taken place is a decision by the scottish executive, which has taken place on the compassionate grounds and

those compassionate grounds didn't even exist a few years back. the court was absolutely right, but we made it clear, the only way this could be dealt with was through the proper procedures. >> and libyan leader muammar khaddafi's support for the release has gained outrage. a terrorist was acquitted of illegally possessing and transporting explosives. the case pitted national security against charges of racial profiling. and john zarrella has more. >> reporter: the federal government tried painting megahi as a terrorist. in a major set back, an immigration judge has dismissed the case, saying prosecutors didn't prove it, no surprise to garry maringer.

>> whatever he did, there's no evidence of it, thank god in this country, you have to prove somebody guilty before you can incarcerate them. >> megahed who came to the u.s. from libya in 1988 was charged with transporting explosives. after a three-week trial. they circled not guilty on the form. for megahed, freedom, right? no, megahed was rearrested. now they're saying you're a terrorist and you're going to be deported how do you react to that? >> i would say this is a false allegation, baseless. and i go to fourth to fight against those allegations. >> we talked by phone with yousef megahed.

how 2kid all this unfold? two years ago, megahed, a student at the university of south florida, went on a road trip with a friend, am med mohammad. they were pulled over and police found a detonator for model rockets. it was a video posted on youtube that made the case against mohammad. in arabic, he explains. on the family's home computer, authorities say they found videos, documents and an internet search history that supports, quote, jihad against the united states. the jurors believed megahed, not the government. he was freed for all of three

days. this time immigration and customs enforcement is accusing him of being, quote, engaged in or likely to engage in any terrorist activity. megahed says he's been racially profiled. >> first it's double jeopardy. second they keep talking about change and change. if president obama wants to talk about change, he should look first inside, inside the u.s. before talking about change worldwide. >> reporter: a senior administration official told us the white house would have no comment on this case. but garry maringer has had plenty to say. on a dreary saturday, he got in his car for a two-hour drive to visit megahed. >> i wanted him to know that there were people out here that

cared about him and were praying for him and i wanted him to get a fair shake. iraqi officials are investigating members of its security force assisting suicide bombers in six deadly attacks this week. at least 100 people died and hundreds more were wounded when truck bombs crashed inside baghdad. a suicide bomber driving through a checkpoint until he reached his target. meantime while iraqi military has -- gay in iraq and targeted by security forces. we'll take a look at the live and death consequences. also this. >> if i could say anything to that parent whose child caused my child to lose his life i hope you never feel like i feel. >> it is said that there's no greater pain than a parent losing their child and it's

happened way too often on chicago streets. we head right there to find out what's going on and get some solutions for you. chicago's deadly streets. in your hands... knees... and back. for little bodies with fevers.. and big bodies on high blood pressure medicine. tylenol works with your body... in a way other pain relievers don't... so you feel better... knowing doctors recommend tylenol... more than any other brand of pain reliever.

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okay this is a sign of the changing times. another u.s. church says it is okay for gay pastors to have sex. the evangelical lutheran church is the third largest church in america. the new policy abolishes the celibacy rules for clergy members involved in, quote, lifelong monogamous relationships. the lutheran community says that the new policy encourages sin and they may be leaving the church. there's many places around the world where gays and lesbians face harassment and even death. >> reporter: stilling atrocities committed against iraq's homosexuals. iraq believes homosexuality as a disease that needs to be

personaled. when this video sprung up on youtube showing iraqi gay men partying it caused a terrifying backlash, in this report released on monday, human rights groups warned of torture and murder against iraq's gay community. they always used to hunt us, but after this video, it became much worse, this gay man tells us. he and his three friends, brave enough to speak out but too frightened to have their identities revealed. what are some of the atrocities that are being committed against the gay community that you know of? many of my friends were killed and many othered wounded or harmed and the eldest among them said, some were tortured, they had shots blown up their anus. i was with my boyfriend driving around, i had my head on his

shoulders, this man remembers, security forces stopped us and ordered us out of the car, they beat my boyfriend severely and put him in jail. he's been there for four months. this lists names of individuals accused of being gay. part of it warns if you do not end this shameful behavior your fate will be death. some gay iraqis have even been killed by their own families. ashamed of the stigma surrounding homosexuality. this cell phone video shows a transsexual being harassed by iraqi police. he was a hair dresser, his friend tells us, he was killed by his family after the iraqi police threatened to kim him. i heard that they even wanted to stone him. one shows the scars left by acid doused on his leg.

the other displays a slash on his wrist. members of iraq's gay community have to try to blend in when they're out on the streets or face the consequences. the iraqi police says it condemns the murder or abuse of any of its citizens but has done little else to protect the country's homosexualities. we found they were left to fend for thenlss. according to human rights watch, it is difficult to place an exact number on homosexuals killed. indications is that the numbers are in the hundreds. homosexuality is not illegal in iraq, but there's very few if any laws to protect homosexuals. quite the contrary, iraqi's gay criminal code actually gives police and prosecutors broad scope to punish individuals whose behavior and appearance they quite simply don't like. don? >> thank you very much for that report. hurricane bill targeting the east coast, cnn's jackie jeras

in our hurricane headquarters tracking every little bit of it. plus we're going to have this for you. there's people in the area if i was to get out of the truck, they would give us a pass. >> just from riding here, we're taking our lives in our hand? >> i have to be honest with you because people shoot and they ask questions later. >> we survived going inside chicago's deadly streets. but while we were there, there were shootings and killings, even as we were talking to officials about solutions. we're going to take you there. she wants to make up.

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good choice. only meineke lets you choose the brake service that's right for you. and save 50% on pads and shoes. meineke. you know, this is a developing story because obviously the hurricane is still moving, still churning and we're keeping a very close watch on bill this hour. downgraded to category 1, but still has jackie jeras has been reporting, the waves are really dangerous and that is the problem. >> we just got word from the

national weather service, saying that wrightsville beach, north carolina, they have had 50 water rescues taking place today because people are going out in the water, they're getting caught in rip currents and they can't swim out of them. 50 people at one beach. so far thankfully we have had no reports of any deaths, however people go in the water throughout this weekend, unfortunately, i'm afraid this is going to end up happening. heed those warnings if those flags are flying. this is the number one threat of hurricane bill to the united states. the storm is so large, even though it's weakened, when you get a large magnitude storm, it creates bigger waves. here you can see, we're looking at the storm bringing in some of those outer bands, we'll watch this increase for tonight, expect to see these winds beginning to pick up. they're not too bad at this hour, you can see at about 10, 12 miles an hour in boston. watch for the potential for maybe 20 to 30 overnight tonight. don? so this next story that we're going to tell you about

here, we are going to go to chicago's deadly streets and this story should be on every single newscast, especially considering this. nearly 300 people have died in chicago just this year alone, many of them, young people, 21 and under. i think it's like 69 or so. some of them were innocent bystanders caught in the cross fire. some loved ones, family members. so i went to chicago to find out what was really going on. pay attention. theo knows chicago's deadly streets and takes us for a ride so dangerous it's been dubbed killer town. >> if you come up into killer town and people don't know who you are, we can get shot right now for driving down this street, we can get shot.

>> he runs a nonprofit that tries to get youth, drugs and young people out of the neighborhood. >> if i was to get out of the truck, and if i said i'm doing something for cnn they would gave us a pass. >> but we're taking our lives in our hands right now just driving down this street? >> yes, because people shoot and ask questions later, there's no death to the madness. >> you want to join us tonight at 10:00, but also when i spoke with the parents about the day, the night that they lost their children, there was a chilling irony in all of it. all of their children were taken to the same hospital and they mentioned, quote, the room. i asked them to explain. when you said not the room. >> we were all in the same hospital. >> what is the room? >> i refused the room. it's the family room. and it's the room that they take you in when they know that your

loved one is already gone. >> devastating story. you'll hear more of my conversation with those parents. we discuss solutions and what needs to be done about violence in chicago on a national level. tonight at 10:00 p.m. eastern, you definitely don't want to miss that. not covering this story would really be a crime in itself, so we have been following it especially on this show. 25-year-old zack isaac is a gradual school in loyola and has lived in chicago's south side all his life. he talked to an elementary schoolteacher in his neighborhood about how to stop violence. >> people like this teacher teach life lessons along with the required curriculum. she teaches third graders hoping to reach them before gangs do, but she wants communities to join the effort. >> we need to stop dehumanizing gang members and start humanizing them.

what i mean by that is we need to start taking an active and proactive approach to these people, and that's who they r they are our brothers, our sisters, our uncles our aunts and we need to treat them as such. we need to be able to go to them and say, you know what you're doing is affecting all of us, it's bringing down our community and it's truly affecting the children. >> if you have a story about how violence has affected you, send it to ireport.com. tonight we're taking an indepth looking at the chicago city streets. we'll take you to the neighbors where this is happening and we'll question police and what people are doing to stop the violence. a when you see all of the kids, you know, all of the people who are killed in chicago this year, it's terrible that it happens, but many of them are school-aged kids, it's happening in and

around schools. solution? >> first of all it's a devastating problem and it's unacceptable. and, you know, kids can't learn if they don't feel safe. it's the one area that i felt in my time in chicago, we improved in so many ways. this is one area where i feel like an absolute failure. >> why do you feel like a failure with that? >> i look at trends and from the time i started raising this four or five years ago when 20 students were killed. i think every year those numbers have gotten worse not better. >> secretary of education, arnie duncan, president and ceo of chicago's schools. you can see more of my reporting from chicago as well as my producer annika young, as well as her personal blog about her connection to this story. hurricane bill, targeting the east coast, jacqui jeras, tracking the storm right now in

the severe weather center, she's going to tell you what's happening on one beach, too many rescues. stay out of the water. plus this for you. >> i was lucky if i was getting two hours of sleep every night. i was a walking zombie. >> u.s. trains their soldiers bodies but what about their minds? blrk ♪ bicycle, what are we waiting for? the flowers are blooming. the air is sweet. and zyrtec® starts... relieving my allergies... 2 hours faster than claritin®.

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got some new video to show you just into cnn. look at that wildfire, dozens of them across greece today. the fires are destroying olive groves plus a few are advancing on the northern suburbs of athens. the fires are in an area more than 25 miles wide, including two large children's hospitals and several villages. anti-aircraft missiles have been removed from a base north of athens that's threatened by those fires. jacqui jeras, does that happen auchbl in athens? >> just a couple of years ago there was huge fires and it was threatening some of the historic grounds in athens. some scary pictures going on there as well.

scary stuff happening here at home too. bill is a big story, we just got our 8:00 advisory in a little early, thanks to those hard working folks at the national hurricane center. bill is holding its own, 85 miles an hour sustained winds and it's about 200 miles away from the new england coast. the tropical storm force winds extend out about that far. so it's possible we could start seeing some of those gusting moving in, but the biggest winds are in the right quadrant of storms. the forecast track, just the same, no changes here, we're moving northward now, but expecting that gradual northeastward turn, keeping it away from the northwest including nova scotia, making landfall sometime tomorrow morning at noonish, this is going to be a serious storm for the canadian maritimes. we're talking about the threat just a few minutes ago about the

50 rescues on northville beach in north carolina. life guards say the numbers are actually closer to 80. one person was take on the the hospital after going under water briefly. they decided not to close the beach there today because they said it would be really difficult with 50,000 people and a beautiful weekend. it is a great weekend and it's one of the last weekends of summer. go ahead and go, but don't go out in the water, you really don't have to do that. we'll zoom in and show you some of the showers and thundershowers that we have been dealing with without the day for today and they have been very strong because that cold front's been moving on in another big threat we have been dealing with, new york city, philadelphia, down into virginia, we have been seeing incredible amounts of rainfall, one to three inches, so we have been getting a lot of reports of water-covered roadways. keep my advice on this one too. don't drive through any of that

water, if it's covering the road, you can't see how deep it is, better to stay safe. i know, i'm such a mom. >> that's great, especially if you're talking about 50 people having to be rescued in the water, you're exactly right. listen to our jacqui jeras. tracking everything related to hurricane bill. let's head out to the coast light now, a tropical storm warning is in effect in chat ham, massachusetts. that's where we find susan candiotti and there's where she's keeping an eye on the waves and the approaching storm. is that water out in front of you? >> we're on light house beach. it's been a lovely day, really it has, light winds, broken clouds, although the beaches have been closed since yesterday afternoon. last year they had a hurricane

out here they obviously escaped a direct hit with hurricane bob. joining us now is jordan berrian. as we take a look at the water over your shoulder. we're losing light fast, obviously. it looks so calm out there. what do we see beyond that sand bar? >> yes, generally in the harbor areas it's going to stay pretty shallow and it's pretty calm in the shallow waters. but out there it's about 8 to 10-foot swells out there. >> and it could get much higher than that after about 9:00 tonight? >> we're looking at about 19-foot swells out there tonight. >> obviously that's a big danger to especially boaters out there. what is the conditions been like during the day?

>> it's been generally calm, but tonight we recommend everybody stay off the beach. >> has everybody been coming in? >> it's been normal traffic out here today. the fishermen are just going out here in the harbor. >> of course they'll be watching out, obviously, don, for beach erosion here. that's a key thing, it always happens when there's a big storm that comes through. and as you know, president obama is going to be arriving tomorrow afternoon and then flying over to martha's vineyard. >> all right, that's susan candiotti in chat ham, massachusetts. you can see why, because there's an approaching storm. >> the president is arriving tomorrow. he's at camp david now and he will be leaving tomorrow morning for martha's vineyard. we'll have it covered for you. the storm is missing shore, but it's causing rip currents across atlantic beaches. what is a rip current, and what

should you do if you get caught in one? the best thing to do is not to get caught in one. but our reynolds wolf has some answers for you. >> here on florida's east coast, conditions couldn't be better. we have partly cloudy skies we'll out here enjoying themselves. roughly 1,000 mile away, we have a hurricane that's brewing. there's still a threat from the rip currents. so the question is, what is a rip current? this is geno serrano, and what is a rip current? >> rip current is a toe of water. it happens when we have ten miles plus sustained. the channel of water pulls all that water back out to sea. >> when an increased volume of water is pushed towards the shoreline by a tropical system or a never, it retreats rapidly back into the surf, creating channels. an unsuspecting swimmer caught

in this conveyor belt of swift water is at the mercy of the current. the key is to panic. >> don't panic and don't swim against the current. >> we're going to try it out ourselves. five minutes later, there's an deft ebb and flow of the ocean's currents. if carried away from the beach, the best course of action is to swim parallel to the shoreline and out not into the rip current. larry also said the best way to avoid problems is to use common sense. >> look at the flags that the life guards have up because they're aware of the water conditions. always swim near a life guard tower, if you neert a strong ocean water on a rough water day, steer clear of the water. >> when in doubt, don't go out? >> exactly.

>> reynolds in a wet suit. good advice from the life guard. by one account, currents account for more than 80% of rescues by surf beach life guards. too many american soldiers are returning home with post-traumatic stress disorder. so the army is requiring all soldiers to train their minds as well as their bodies. liners, with wings! absorb ten times more, like a pad but feel thin and comfy, like a liner. new carefree® ultra protection™ i cannot be one of the 61 million americans who do not refill their prescriptions on time. readyfill at cvs pharmacy automatically refills my prescriptions and reminds me to pick them up. you mean, reminds me to pick them up. [ chuckles ] stop by your local cvs pharmacy to ask if readyfill is right for you, and get a $25 coupon book.

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afghanistan. 59-year-old first sergeant jose cristomom. was killed in a roadside bomb on tuesday. he was well aware of the risks of combat. in 24 years in the military he served in vietnam and kuwait before requiring in the military in 1993. after 9/11, he decided to reenlist in the u.s. army. >> when 9/11 came up, he was interested in going back and serving his country which he loved to do and that was the passion of his life. friends and family say why did you let him do it and i simply say it's what he wanted and we support him. >> jose was killed by a roadside bomb in afghanistan, he is survived by his wife, four children and ten grandchildren. about 20% of troops touring iraq and afghanistan battle a

new enemy when they return home. depression and suicide. but the army hopes to attack this problem head on with a mental mental boot camp meant to head off mental health problems and improve combat. >> reporter: for all his training as an army ranger this first sergeant said it was a coffee urn that shielded and saved him the day a suicide bomber blew up a dining hall in mosul, iraq. >> i was about 20 feet from the bomb. >> reporter: 22 soldiers died. he knew 19 of them. but he shook it off, or so he thought. >> i was good to go and got back on the plane and down to the range. >> reporter: he returned to combat but another suicide bomb left him with a broken back, this time no shaking off his physical and psychological pain. and no training that could have stopped him from feeling. >> you watch people burn alive

and the smells that come from that or when you see, you're coming up trying to save a family and watching them get executed before you can get to them and save them those aren't things you can recreate in your life. >> reporter: he began drinking heavily and barely slept. >> for over a year i was lucky if i was getting two hours of sleep every other night and i was a walking zombie. >> reporter: eventually his higher ups intervened, temporarily demoting him and forcing him into treatment for post traumatic stress disorder or ptsd. mccaslin is not alone. nearly one in five service members returning from iraq or afghanistan reported suffering symptoms of ptsd or depression. according to a survey last year by the nonprofit rand organization. now the army is focusing more attention on soldiers' mental and emotional well being. with new training, aimed at helping them deal with mental health problems. creed mccaslin believes the first step is getting soldiers to overcome their fears of looking weak.

>> stigma kills. we've got to do a culture change within our military. >> reporter: he now speaks to other soldiers about ptsd as he did recently at fort hood, texas. his message? that soldiers can and should reach out if they need help. >> soldiers have to take control themselves. it's not just, hey, everybody needs to take care of me. the soldier's got to take care of himself. >> reporter: as for the army program all active duty and reserve soldiers have to take a 170-question survey meant to identify potential mental and emotional problems and direct a soldier to counseling if needed. elaine quijano, cnn, washington. >> thank you. banks, investment firms and car makers all received huge federal bailouts but what about the country's largest employers, small businesses? turns out pickings are slim for them. it's your money. it's your main street. plus, tonight at 10:00 p.m. eastern we'll take you inside the deadly streets of chicago and some of the most dangerous

neighborhoods there and talk to people who say they're gang bangers and they sell drugs and also people who are turning their lives around and the family members, as well, who have lost loved ones in the violence.

i've helped somebody. you know, it makes me feel pretty good. we're offering a solution for a customer

that maybe has to choose between paying their credit card or putting food on the table. our main objective is to reach out to the customers that are falling behind on their payments. a lot of customers are proud and happy that bank of america actually has a solution to help them out. i listen. that's the first thing i do is i listen. you know what, what happened? what put you in this situation? we always want to make sure that we're doing i'll go through some of his monthly expenses, if he has a mortgage payment, if he pays rent. and then i'll use all that information to try and see what kind of a payment he financially can handle. i want to help you. bank of america wants to help you through this difficult time. when they come to you and they say thank you aj, for helping me with this problem, that's where we get our joy from.

you want to create jobs? one north carolina restaurant owner says he'd create 35 jobs within three months if you send some stimulus money his way. he just needs a loan, he says. but it's a dog eat dog world. >> reporter: dinner time in lumberton, north carolina. >> everything good? >> reporter: restaurant owner rod redfern. >> we did a million two in 2007, not bad for a small town and small restaurant. >> reporter: he has 30 employees, a crowded bar on weekends, a dependable banquet business. five years ago he turned a century-old mule stable into

this. he's confident he's got the ingredients to open another restaurant, here, 35 miles north on i-95 in fayetteville. >> i'll hire 50 people in three months if i get the money. >> reporter: $150,000 to be exact. >> my issue is stimulus money that everybody is talking about needs to flow through to small businesses like this one. i don't want a bailout. i just want you to open the door. i'll walk through myself. >> reporter: so far that door is shut. we called bb & t banks the largest area lender and it turns out redfern's credit score doesn't match his confidence. a spokesperson for the bank who recently paid back its own bail out said we have turned him down based to his credit history. he admits to bumps in the road that dinged his credit. this is the new world of lending. >> lenders are returning to the old financial lending standards. you know, they're making loans with the expectation that all of them are going to be repaid.

>> reporter: that means making fewer loans to only the best applicants even small business owners like redfern who have had no trouble borrowing money in the past are being turned away. >> we've sort of ended up in the chicken and egg situation where the banks don't want to make the loans because the small business sector as a whole is having such trouble but then small business owners can't get financing they need to run their businesses normally to expand. >> reporter: the number of new small business loans is less than half what it was before the recession but the stimulus has helped. the amount of money loaned through is the ba's program has risen 50% since february. ever the entrepreneur, redfern doesn't have the loan but still has the vision. you look at this parking lot and you see cars and you see a successful restaurant. >> i see it full. >> reporter: cnn, lumberton, north carolina. a lot of you have been responding to our stories about chicago. we hope you tune in tonight. here's what some of you are saying. this is on twitter. gang issues are not addressed

appropriately. this is why they continue to grow. the situation unfortunately will get worse. fwj1950 says we need big brothers, rehabilitated gang members, special police force, social programs, and development, jobs and community aid. time4twit says i'm from the chicago burbs and will tell you there is a difference on how the city reacts to crime on the north than it does south. that is a big issue in chicago right now. it's been in the news media because there has been a rise in violence on the north side as well as the south and west sides of chicago. we want you to be part of our community here. twitter, facebook, myspace.com. tonight at 10:00 we are taking an in depth look at chicago's deadly streets. we take you to the neighborhoods where the killings are happening. we'll question city officials. we look at what one local group is doing to stop the violence and we'll go one-on-one with chicago's former