>> i'm really looking forward to this. and they inspire me. they inspire me to become a better person. >> larry: great seeing you again, ricky. >> likewise, larry. >> larry: ricky martin. the book is "me." hey, if you want to interview me, go to cnn.com/larryking for details. judge judy is here tomorrow night and the "dancing with the stars" finalists thursday and michael moore friday. right now it's fitime for "ac 360." thanks for watching, everyone. tonight sarah palin attacking a "wall street journal" reporter for not having his facts. the problem is it's palin who doesn't have the facts. and bracing for a blizzard of subpoenas, darryl ice sha promising to hold hundreds of hearings when republicans take control of the white house. is he flip-flopping? we're keeping them honest. and later, crime and punishment,

a horrific murder that shook a new hampshire town to its core. prosecutors called it a thrill kill and today the killer was convicted and sentenced. find out where he will be sent. we'll take you inside the trial. we begin as always, keeping them honest. instead of admitting a mistake, has chosen to attack the reporter who dared to point it out. we're talking about sarah palin who lashed out after a reporter after he correctly pointed out a factually incorrect statement. everyone makes mistakes. but rather than admit her mistake, palin used her facebook page to attack the reporter. let's go over to the wall now and show you how all of this began. yesterday in a speech, palin made in phoenix, she blasted the federal reserve's recent decision to buy $600 billion in long-term u.s. treasury bonds to help jump start the economy. it's known as quantitative easing, also called priming the pump. palin said it deeply concerns her, and she went on to say,

everyone whoever goes out shopping for groceries know that's prices have risen significantly over the past year or so. pump priming would push them even higher. "wall street journal" economics blogger posted an article titled the qe2 criticism, writing in the article, grocery prices haven't risen all that significantly, in fact. the consumer prices, the consumer price index is measure of food and beverages for the first nine months of the year shows inflation of less than 0.6%, the lowest since the labor department started keeping this statistic. palin chose to fire back on facebook and twitter, saying about the reporter, this is what sarah palin wrote. mr. ready takes aim at this, he writes grocery prices haven't risen all that significantly in fact. sarah palin says, really? that's odd. just last thursday i read an

article in "the wall street journal" titled, food sellers raise places, passing along rising costs even as consumers pinch pennies. sarah palin goes on saying the article noted that an inflationary tide is beginning to ripple through america's super markets and restaurants, dot dot dot, prices of staples including milk, beef, coffee, cocoa and sugar have risen chartly in recent months. now i realize i'm just a former governor and current housewife from alaska, but even humble folks like me can read the newspaper. i'm surprised a prestigious reporter from "the wall street journal" doesn't. it's the kind of attack on the so-called lame stream media she relishes and her supporters love. the only problem is this supports ready's take, not palin and palin must have known that because see the ellipsecies she added? like at these that she added into this sentence. the dot dot dot there. she intentionally cut out part of the sentence that proves she's wrong. the actual sentence from "the

wall street journal" reads -- let's take a look. an inflationary tide is beginning to ripple through america's super markets and restaurants threatening to end the tamest year of food pricing in nearly two decades. this is the part she cut out. the tamest year of food pricing in nearly two decades. the original statement was that the grocery, quote, prices have risen significantly over the past year or so. now, mr. ready responded to palin's attack simply pointing out where she was wrong, saying the article she referenced, quote, does indeed report super markets and restaurants are facing cost pressures that could push retail prices higher but it hasn't happened yet on a large scale. so you'd think after mocking this reporter saying he doesn't read his own paper and is wrong, then ms. palin would if not apologize, correct herself. she hasn't. and there's a pattern here. often when a reporter challenges a statement ms. palin makes or writes something she doesn't like, she lashes back, attacking the messenger, attack being the reporter, the lame stream media,

giving them advice on how to do their jobs t is kind of a constant refrain. >> don't get sucked into the lame stream media's lies. this bs coming from the lame stream media lately. you're not getting the truth from the lame stream media about the real joe miller. >> now, supporters of sarah palin will say this story is nit-picking, much ado about nothing, an attack by "the wall street journal" and i guess now by me. it is a small matter in the grand scheme of things but all the more reason to just admit the mistake. and as for not worth reporting on, fact dozs do matter, bu. we all make mistakes approximate the difference between the lame stream media and politicians is responsible media outlets have the obligation to correct their mistakes. responsible politicians should do the same thing as well. joining me, david gergen and

dana loesche. david, is this much ado about nothing? >> i'm very torn on this. i think your whole series about keeping them honest is extremely important to journal. >> and it's been effective. on this particular one, i have to say, she was the one who was attacked by "the wall street journal" first and she responded. >> but attacked by, he put it on -- >> he said, she made a mistake. >> right. >> and as you read the article, i think it did say that inflation was coming back. >> right. >> so that she was not entirely incorrect in saying there was higher inflation in groceries, on groceries. >> she'd been saying food prices had been going up the last several years. >> i think that's where she was incorrect. i think it was partially incorrect and partially correct. in all honesty, i don't think she should have taken the bait and gone after him, it would have been better to go on and admit it. a fellow today from slate went on, on her facebook page and

pointed out the incorrections and they wiped him out, twice they wiped him out. i think that's sort of silly. but i have to say, i have a hard time getting really excited about this. i do think the larger significance, sarah palin has gone after the federal reserve. a lot of critics would say she doesn't know what the federal reserve is and yet she's been willing to take on this thing and she's gotten favorable -- in "the wall street journal" she got a favorable editorial today saying she was right on something fairly sophisticated and i find that very interesting. it will be interesting to see how she answers questions without a script in front of her. >> dana, i'm sure you think this is much ado about nothing or nit-picki nit-picking? >> well, it is yes and no. i think the larger point is being missed, anderson, and thanks for having me back. i have to echo what david said as well. "the wall street journal," the editorial board came out with a column sort of affirming some of the things that palin was saying, and it seems to me that it's kind of an argument

between, well, which adjective was the best one to use? significantly or moderate? all the while, everyone is ignoring the bigger problem, the bigger thick thng, the fed want print more money and she's calling them out. the whole point got lost in semantics. >> i do find it interesting, she, like a lot of politicians, republicans and democrats, people don't admit when they make a mistake. i think frankly people, the voting public would like it if somebody just said, look, okay, i made an error. we all make errors. rather than attack the messenger. >> well, right. we see that from our government almost daily, especially with some of the stimulus estimates. but this, i mean, this whole situation with palin calling out the federal reserve, calling out ben bernanke, that, to me, is spr supremely important. it got lost. this is relayed in "the wall

street journal" journal article, food prices have been increasing but i think she was more or less talking about the fact that you're talking about increasing, deliberate inflation from the fed, which is going to have an effect on consumers already hanging on to their dollars and it's already giving grocers headaches and making everyone scared. so i think the bigger point was missed. >> on that, i disagree. dana made some very good points. but ben bernanke is not, he's not really trying to list the inflation rate, what he's trying to do is get this economy moving, he's trying to get long-term interest rates down. and he's trying to get the value of stocks up, sort of asset prices as they're called, in order to give people more confidence both to buy long-term and to borrow long-term as well as people getting more as a consumer. so there is a legitimate argument about what he's doing but i don't think it's fair to

say, and i don't think sarah palin would be fair to say he's deliberately trying to inflate our way out of this. >> i disagree with his approach. i disagree with bernanke's approach because i think it further contributes to the environment, the economic environment that we are currently in where businesses are terrified, investors are terrified. thus we see growth stunted. >> i want to go back to your fundamental point, anderson. there is in this country a very deep reluctance on the part of politicians to admit error. and that's because they somehow think if they admit it, they're going to get killed. you know, their opponents will run ads about it, one thing and another -- >> which is a fair argument. opponents probably would run on -- >> we've gotten to the point where the public increasingly doesn't think people are telling the truth. when they don't tell the truth they won't admit they're not telling the truth. >> do you think if sarah palin was running for president is too thin skinned? those say she goes after the media every time and pilot qu. >> i think backing and forthing like this in a presidential

campaign would hurt her campaign a lot. to go to that end point, it took the focus tonight off her argument and we got off into this sort of, you know, this side thing. which is actually, you know, sort of fun and interesting but it took the focus off her more substantive point. if she's going to run for president she's going to have to have a much thicker skin and let some of this stuff go. i found it interesting she would make a speech about the fed, because for the first time i thought maybe she is running for president. to give a speech like this, i thought, wow. you don't give a speech like this. you don't wander into this terrain which is very complicated stuff unless you want to get more gravitas. she's been accused of not having gravitas. >> dana, do you think she's running? >> i don't know. i don't know if she's running or solidifying her position as a king maker because she's sort of batting .900 right now in terms of her endorsements and those who ran on november 2nd. it's an interesting criticism because she sort of went above

what she normally goes after, but i think that what she demonstrated in this particular instance was fighting down. and it sort of gave leverage and greater importance and distracted from her whole criticism of going after bernanke, going after the fed. >> that's a good way to put it. fighting down is exactly the right way to put it. >> david gergen, dana loesche, thanks. let us know what you think, join the live chat going on right now. darrell issa has promised to hold hundreds of hearings. how tough does he plan to be? some say he's sending mixed messages. also ahead, president obama delivering a big speech to the islamic world tonight as he wraps up his trip to indonesia. his message to muslims ahead. you could never deliver this much power in a space this small until now.

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the campaign trail. once a politician gets elected, the promises and words begin to change. when congressman darrell issa ran for re-election this year, he had pretty tough things to say about the obama administration and what he would do if sent back to washington. he's expected to run a powerful committee charged with investigating federal programs. as chairman he would have subpoena power to investigate the obama administration. the question now is how is he going to use that new power and what will he investigate? last spring when congressman joe sestak revealed the administration was ready to offer him a job if he dropped his primary bid against arlen specter, issa called it obama's water gate and, quote, a crime has been committed by the white house. >> an allegation has been made that multiple sources in both parties, anthony weiner, dick morris and others have made it very clear, even axelrod, that they should answer, that in fact this is serious. this is an impeachable offense,

according to dick morris. it's not about what was done wrong, it's about the cover up. and right now there's a coverup going on in the white house. we can no longer trust the administration when they say we're ethical and you should trust us. >> last month when he needed votes, congressman issa had this to say. >> he has been one of the most corrupt presidents in modern times. he has ignored the very laws that he said were so vital when he was a senator. >> since election day, however, congressman issa seems to have changed his words and tone. he told wolf blitzer yesterday he can't criticize president obama on the sestak situation because the bush administration did the same thing. and when asked directly if he believes president obama's corrupt, here's what he had to say. >> do i think the president is personally corrupt, no. i should never have implied that or created that in a quick statement on a radio call-in. >> this weekend he also sounded conciliatory saying he'll conduct investigations out of

the public glare in a less partisan way. >> i have no plans to subpoena any of the current administration. i have over 100 letters out requesting information, i hope those will be provided voluntarily, pursuant to the law. >> so critics say trying to get votes he said this is one of the most corrupt presidents in history. once he had the votes he said he's not. is he backing off the heated language? not exactly. late yesterday he told politico, politico posted an interview saying he's prepared to hold upwars of 280 interviews in a year. the last two years of the bush administration, the democratic committee held 203 hearings over two years. it's a curb on federal power and protection. on his website, he points out republicans on the oversight committee have sent dozens of requests for hearings, joint investigations, subpoenas to investigate allegations of government waste, fraud and misconduct, but to no avail. so it's absolutely appropriate

the republicans would want to set their own agenda now that they're in the majority. what's not clear however, is exactly what mr. issa's agenda will be. a short time ago i spoke to erick erickson, jeffrey toobin and cornell belcher. >> he's learned the lessons of past oversight committees and not going to be issuing subpoena after subpoena after subpoena, as was done after clinton lost in the midterms in '94, '95. he's quoted as saying, i want seven hearings a week times 40 weeks. >> it depends what he's investigating. he issued a report earlier this week, i want to investigate homeland security, i want to investigate whether the stimulus is working, this is entirely appropriate stuff and i think it's good for congress to investigate. >> there's an important role and reason there's oversight. >> absolutely. the problem is he is also given

signals he's going to indulge these crazy right wing obsessions like the new black panther party, a.c.o.r.n., which is nonsense. >> you have no concerns for republicans who have been elected by talking about financial issues and focusing on jobs and the economy, it's not going to seem like a distraction, focusing on a.c.o.r.n., for instance? >> that's the balance, and that's the game as well. the democrats will try to make it look like republicans are distracted like this, and the republicans will have to work very hard to make sure they're not. there are 20-some committees in the house of representatives. they all function concurrently not one at a time, so they can do multiple things at once. >> is this just the way the game is played in washington? i was looking at henry waxman when he ran the oversight committee. he had over 200-something here i hearings, about the same number issa. >> roughly 208 over two years. he's talking about doing 280 in a year. you just had a referendum election that was primarily about the economy.

what's the unemployment rate at right now and you have this congressman wanting to expand these powers, to actually start new subcommittees for investigations. this is why americans get so disgusted with washington and politics as usual. because it's not focusing on what they're focused on. >> well, we'll see. i think -- >> waxman held 203, but just for accuracy sake. >> over two years. this is 280 in a year. >> and it just depends on what the hearings are about. erick says, fine, let's investigate the new black panther party. so the question is, is it important? are they talking about issues that matter to people? the economy matters. national security matters. homeland security matter. >> but were democrats complaining when waxman was doing it? >> i think waxman was dealing with very substantive issues. waxman was talking about issues like smoking. the most famous henry waxman hearing was when he brought in all the ceos of the tobacco companies. i think that was a huge turning point.

>> let me -- during 2008 the last year of the bush administration, democrats held on oversight committees held 96 committee and subcommittee hearings. this year with the obama administration in power, the committee held 76 hearings, a drop of 21%. here's some of the topics the democrats decided to hold hearings on. are super weeds an outgrouth of usda bibiotech policy, female d code felons, defining and fulfilling the mission of national archives administration. >> in the context of a big federal government, one hearing on those subjectes doesn't strie me as odd. >> one person's trivial subject is another person's substantive subject. you can bet john boehner will shut them down. >> i'm not even trying to score political points, and i've got to push back on you here, he's talking about doing 280

investigations in one year, more than what waxman did in two years so it's a little different. >> i don't think the number -- >> the number matters. >> 280 hearings that are important and useful, more power to them. the question is, can he do that? no one in the history of congress ever has, so i think the odds are against him. but i just don't think the number is all that important. >> he's already walking back the idea of the a.c.o.r.n. investigation. i haven't heard on the new black panther thing, but he already seems to be trying to send the message that what he's looking at and focusing on is stuff related to jobs, stuff related to the stimulus and the like. >> well, here's the thing. if he's going to focus on that sort of thing, that's fine. but from what i've read him focusing on and some of the hard partisans he's trying to put in place in some of these subcommittees, it sounds like a witch hunt, it feels like a witch hunt. >> well, this is like henry waxman investigating bush ties to halliburton. these things come up, elections have consequences. the republicans will investigate a few of the things republican

partisans want investigated but how ever many hearings he has they will be on substantive things, on homeland security, on white house policy on health care, white house policy on immigration, on actual substantive legislative things perfectly within the purview of congress. >> do you think he's stepping back from the rhetoric he was using to get elected? is he -- he called -- >> absolutely. >> he call talked about a.c.o.r.n. an awful lot. does it seem now he's walking this back? >> there is campaign trail rhetoric and there is leadership rhetoric and he's gone into full leadership mode. they all walk it back, whether they're democrat or republican, once they get into office. that's just part of it. that's why americans are so cynical about politics, frankly. >> wait a second. do you just accept there is a complete difference between politics and government? i appreciate the cynicism, but, you know, i think we should have people led to a little bit of a higher standard that than, erick. >> you know, i've gone beyond holding politicians really to any standard.

>> well, i'm not. >> erick, seriously, though, do you believe that -- the american public clearly votes with their heart and believes in people, and if somebody on the campaign trail is saying one thing and singing a different tune when they get to d.c., isn't that hypocritical? >> 97% of the american public has never even heard of darrell issa and they certainly don't know what he said on the campaign trail. yes they'll have some of these hearings by by and large, people get elected to office and -- >> cornell are you cynical like that, too? >> i may be more cynical than erick which is hard to believe. >> you're a pollster so you've got to be cynical. >> i saw "mr. smith goes to washington" most recently, of all these people. 's like, darrell issa, innocent until proven guilty. let's see what he does. maybe he'll do a good job. it could happen. >> jeffrey toobin, cornell belcher, erick erickson, thank you. and promises to cut federal budget deficit, tonight on

"parker/spitzer," eliot spitzer asked rand paul to be specific about cuts he's going to propose. >> my answer to the question is that nothing is off limits. >> well, then let's -- >> let me finish. the other thing is, is that we will look at each individual program and do a step process to this. we will say, can it be downsized? can it be privatized? can it be eliminated? or can we not look at this program at all, because it's too important that it can't be cut. so we will look at this in a step-wise fashion and we will look at everything within the budget and we will make those determinations. but i'm not prepared to look at all thousand different categories and tell you what we'll cut about each one, other than i'm serious about doing this and i will introduce a budget and we'll be happy to come on back in january if you want to go through each individual item. but it's impossible to go

through each individual item of the budget and tell you exactly what percentage and what we will cut at this juncture. >> can you see more, 8:00 p.m. eastern. and highlights from the president's speech, the most important part just finished moments ago in indonesia. and crime and punishment, a teen who killed just for the thrill of it. that's what a prosecutor said, and a brutal thrill kill they called it. the verdict from the jury ahead. and they have a box. and inside that box is their financial life. people wake up and realize i better start doing something. we open up that box. we organize it. and we make decisions. we really are here to help you. they look back and think, "wow. i never thought i could do this." but we've actually done it. [ male announcer ] visit ameriprise.com and put a confident retirement more within reach. [ male announcer ] in the event of a collision, the smartest thing you could do is cut the fuel supply...

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president obama just finished speaking in indonesia in what was his second major address to the muslim world since taking office. there's been so much focus on muslims in the united states this past year, it's gotten a lot of attention. so we thought it worthwhile to hear for several minutes what mr. obama has to say to the muslim world. more muslims live in indonesia than any other part of the

world. he touched on that and how he wants to build a better relationship between this country and the muslim world. >> religion is the final topic i want to address today. and like democracy and development, it is fundamental to the indonesian story. like the other asian nations that i'm visiting on this trip, indonesia is steeped in spirituality. a place where people worship god in many different ways. along with this rich diversity, it is also home to the world's largest muslim population. a truth i came to know as a boy, when i heard the call to prayer across jakarta. just as individuals are not defined solely by their faith, indonesia is defined by more than its muslim population. but we also know that relations between the united states and muslim communities have frayed over many years. as president, i've made it a priority to begin to repair

these relations. [ applause ] as part of that effort, i went to cairo last june and i called for a new beginning between the united states and muslims around the world. one that creates a path for us to move beyond our differences. i said then and i will repeat now, that no single speech can eradicate years of mistrust. but i believed then and i believe today that we do have a choice. we can choose to be defined by our differences and give in to a future of suspicion and mistrust. or we can choose to do the hard work of forging common ground and commit ourselves to the steady pursuit of progress. and i can promise you, no matter what setbacks may come, the united states is committed to human progress. that is who we are, that is what we've done, and that is what we will do.

[ applause ] now, we know well the issues that have caused tension for many years and these are issues i addressed in cairo. in the 17 months that have passed since that speech, we have made some progress, but we have much more work to do. innocent civilians in america, in indonesia and across the world are still targeted by violent extremism. i've made it clear america is not and never will be at war with islam. instead, all of us must work together to defeat al qaeda and its affiliates. we have no claim to be leaders of any religion, certainly not a great world religion like islam. but those who want to build must not secreed ground to terrorist who seek to destroy. in indonesia, you've made progress in rooting out extremists and combatting them,

such violence. in afghanistan, we continue to work with a coalition of nations to build the capacity of the afghan government to secure its future. our shared interest is in building peace in a war-torn land. a peace that provides no safe haven for violent extremists and to provide hope for the afghan people. meanwhile, we've made progress on one of our core commitments, our effort to end the war in iraq. nearly 100,000 american troops have now left iraq under my presidency. [ applause ] iraqis have taken full responsibility for their security. and we will continue to support iraq as it forms an inclusive government, and we will bring all of our troops home. in the middle east, we have faced false starts and setbacks. but we've been persistent in our pursuit of peace.

israelis and palestinians restarted direct talks. but enormous obstacles remain. there should be no illusion that peace and security will come easy. but let there be no doubt. america will spare no effort in working for the outcome that is just and that is in the interests of all the parties involved. two states, israel and palestine, living side by side in peace and security. that is our goal. [ applause ] the stakes are high in resolving all of these issues. for our world has grown smaller. and while those forces that connect us have unleashed great opportunity and great wealth, they also empower those who seek to derail progress. one bomb in a marketplace can obliterate the bustle of daily

commerce. one whispered rumor can obscure the truth and set off violence between communities that once lived together in peace. in an age of rapid change and colliding cultures, what we share as human beings can sometimes be lost. but i believe that the history of both america and indonesia should give us hope. >> that was president obama speaking just a few minutes ago at the university of indonesia before traveling to south korea tomorrow and the g-20 summit. the former head of bp, the guy who got thrown under the bus after a series of public relations blunders is speaking out for the first time since he resigned. you may be surprised about how blunt tony hayward is being about the gulf disaster. and take a look at that, it looked like a missile being fired or the trail of one. why can't the government explain what it is? out of the very best america had to offer. ingenuity. integrity.

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the "360" bulletin. >> the former head of bp is admitting his company was totally behind the eight ball in dealing with the worst oil spill in the nation's history. tony hayward told the bbc that bp was unprepared for the spill and the media frenzy that followed. hayward also said bp's ability to borrow money dried up and the company came close to financial disaster. meanwhile, there's word remnants of the spill have entered the gulf of mexico's food chain. scientists in alabama say they're not surprised they found small amounts of oil carbon in plankton in the gulf which in turn is eaten by shellfish. off the coast of mexico, a stranded cruise ship with nearly 4500 passengers and crew members, carnival cruise lines say the ship lost pewer after an engine room fire. the u.s. navy is providing food and other supplies until the ship can be towed to shore. and they're not so happy about happy meals in san francisco.

the board of supervisors is banning most of them until they meet certain nutritional standards. mcdonald's says it's extremely disappointed with this law. we'll talk more about this tomorrow when dr. phil is our guest. happy meals. they're sort of a guilty pleasure for kids, plus the toy. you know, that's the thing. i don't know, man. >> i was surprised to hear about it. it's interesting, the story about the oil in the food chain, they do test the stuff carefully and there have been no reports of problems. i was in new orleans this weekend, went to a lot of restaurants, ate seafood every night, had oysters and the food is as great as ever. i hope the people don't see that and cancel trips because the food tastes better than ever. >> new orleans is just a wonderful place and it's just a shame all the sort of perils that city and that area has faced. >> i tried a new restaurant called upper lines in new orleans and it's on my list of favorite. >> in the quarter? >> not in the quarter it's in

the garden district i think or uptown, not sure which but it's near tulane and it's amazing. up next, crime and punishment, a judge says a teenager belongs in a cage, that's what the judge said. we'll take you inside the courtroom and back to the beginning of the case that shocked a quiet new hampshire town. also ahead, new details from elizabeth smart about her kidnapping, how she almost escaped months earlier. [ advisor 1 ] what do you see yourself doing one week, one month, five years after you do retire? ♪ client comes in and they have a box. and inside that box is their financial life.

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crime and punishment tonight, a 19-year-old new hampshire man will spend the rest of his life in prison. he was convicted today and immediately sentenced in the machete murder last year of kimberly cates. her daughter was severely attacked by another young man who will stand trial next year. it was a home invasion so brutal the sense of security in a quiet new england community was deeply shattered. deborah feyerick tonight has the story with what officials called a thrill kill. >> reporter: the judge did not mince words, sentencing steven spader to life in prison with no parole for a horrific senseless murder that shocked a small new england town. >> i could go on for days and days and days about the depth of your depravity but it is

sufficient to say that you belong in a cage. >> reporter: it happened october 2009 on a dirt road as the leaves were changing. a thrill kill, prosecutors called it, for 18-year-old high school dropout steve spader and three friends. christoph christopher grible, who allegedly wanted to kill what it felt like. prosecutors describe the teens as followers of the rap group insane clown posse and claimed their formed their own brotherhood, the disciples of destruction. court documents show they took a loyalty oath, methodically gathering knifes, machete, and gloves to commit the crime. the accused attackers made their way up this dirt road in the dead of night, choosing a home that happened to belong to the cates family. it took them more than 30 minutes to find a way to break in. once inside they made their way searching through the home until they got to the last room where kimberly cates and her daughter, jamie, were sleeping.

husband, david, was away on business, and at large system was broken. spader allegedly laid out the events of the grisly night himself in a hand-written note. prosecutors say he called a bedtime story to impress fellow inmate chad landry. landry read it allowed in court. >> swinging the machete down on the mom. she screamed. then kind of gargled. then made some other weird ass noises. i told gribl to stab her just to be sure. he did. >> reporter: he refers to gribble, this man, chris, a co-defendant, who was 19 at the time. >> they were all covered in blood. >> reporter: spaders' two other accomplices cuts deals, testifying what they saw and heard as they stoodout side the bedroom door. >> steve spader walked up to her and hit her in the head with the machete. >> i heard cries for help.

begging, no, no. >> reporter: kimberly cates died in her bed. 11-year-old jamie, stabbed 15 times, fell near the sliding glass doors and lay still, pretending to be dead. >> she was on the floor tangled in the curtains. >> reporter: after the attackers left, jamie called to the kitchen and called 911. >> what is your emergency? >> hello? somebody robbed my -- house. >> reporter: what makes this crime even more difficult to comprehend is how normal the accused teenagers appeared to behave in the hours following. prosecutors say gribble spent some time doing homework before leaving with spader to meet up with other friends at a nearby mall. the two accused thrill seekers seen here just hours after the murder, selling jewelry taken from the cates' home. prosecutors say the crime was never about money, it was about the thrill. spader not only bragging to friends, but also writing about it, calling it, quote, such an

adrenaline rush. the verdict, little consolation for david cates and his daughter. >> we had dreams, hopes and aspirations like any family. and all those are now shattered. >> such -- this is such just a sickening, sickening story. did they just pick this house randomly? >> reporter: completely randomly. they found a house sort of set back, even as a matter of fact there was a house next to it that was simply too big so they decided to go to this ranch-style house. what's amazing is how they just stuck with it. they couldn't get in through the basement so they removed an air-conditioning. one of the people climbed in, let the other people in. but it took 30 to 40 minutes into the house. >> it make it's more terrifying that they just randomly picked this. how is the little girl doing? >> they happened to be in bed together. the father was away on business, they were together. they were very, very close. but she's playing sports again, field hockey, lacrosse. the father said her physical

scars have healed but the emotional scars, it's too soon to tell what the ultimate result of that will be. >> so horrible. deborah feyerick, appreciate it. up next, what elizabeth smart calls her nine months in hell. the man accused of kidnapping her. she told the court about a missed opportunity to save her. >> and take a look at these images. is that a plane or a missile? what is it? hear what the pentagon is saying, coming up. that can simulate head injuries and helps make people safer. then they shared this technology with researchers at wake forest to help reduce head injuries on the football field. so, you know, i can feel a bit better about my son playing football. [ male announcer ] how would you use toyota technology to make a better world? learn how to share your ideas at toyota.com/ideasforgood.

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now in superfruit blends, naturally rich in vitamins and antioxidants. northland. the power of dark fruit. let's check in with joe johns for another news and business bulletin. elizabeth smart took the stand again today in the trial, testifying about an encounter with the salt lake city utah

detective that fall. he wanted her to lift her veil so he could see her face. smith said it was not allowed in their religion. the detective asked if he could be part of their religion for a day so he could report she was not elizabeth smart. smart told the jury mitchell refused. her kidnapping ordeal did not end until the following spring when several police officers saved her from what she called her nine months in hell. the jurors who convicted a man of killing a mother and her two daughters be put to death are speaking out. one said steven hayes got life in prison, it would have been like he was going home, since he had been in and out of prison for 30 years. another talked about the emotional toll of the case. >> when i looked at the photos of the girls and mrs. pettitte, i looked at dr. petit and the

family and the pain, their pain became my pain. stocks took a beating today, the dow fell 60 points. the nasdaq slipped 17 and the s&p lost nine, while gold hit an all-time high, settling at more than $1400 an ounce. and a mystery in southern california. a news helicopter captured this video. to some it looks like a missile or rocket. to others it's a plane. but the pentagon and the faa and others are at a loss and can't explain it. interesting about that, a friend of ac 360 at globalsecurity.org says it's not a missile, it's actually a plane flying toward the camera, if can you believe that. but, you know. >> the angle just looks like it's move ago way from it. that's interesting. they say they're still investigating. at this point, the pentagon says

there's no evidence this has to anything to do with the department of defense. time for tonight's shot. this baby dolphin, only about two weeks old. he was found -- he actually looks like a penguin looking at him, but found four days ago washed up on the beach, the result of fishing net wounds. he's drinking, milk, maybe? no sign of his mom. he's being nursed back to health and they've named him nibber we sort of reminds me of flipper, but it's like baby pigeons. you rarely see -- >> amazing. what a cute little -- i guess you're not supposed to call them fish, they're mammals, right? >> technically that would be correct. joe, thanks very much. ahead on the program, sarah palin lashing out. a reporter pointed out a mistake with her facts. why wouldn't she just admit the mistake? is it important to get the facts right? right? we're keeping them honest.

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tonight sarah palin attacking a "wall street journal" reporter for not having his facts. the problem is it's palin who doesn't have the facts. and bracing for a blizzard of subpoenas, darrell issa promising to hold hundreds of hearings to investigate the white house when the republicans take control of the house. now he seems to be scaling back tough talk from the campaign. is he flip-flopping? we're keeping them honest. and later, crime and punishment, a horrific murder that shook a new hampshire town to its core. prosecutors called it a thrill kill and today the killer was convicted and sentenced. the judge says he belongs in a cage. find out where he will be sent. we'll take you inside the trial.

we begin as always, keeping them honest. when a politician has made a mistake, but instead of admitting it has chosen to attack the reporter who dared point it out to her. we're talking about sarah palin who lashed out after a reporter after he correctly pointed out a factually incorrect statement. everyone makes mistakes. but rather than admit her mistake, palin used her facebook page to attack the reporter. let's go over to the wall now and show you how all of this began. yesterday in a speech, palin made in phoenix, she blasted the federal reserve's recent decision to buy $600 billion in long-term u.s. treasury bonds to help jump start the economy. it's known as quantitative easing, also called priming the pump. palin said it deeply concerns her, and she went on to say, everyone whoever goes out shopping for groceries know that prices have risen significantly over the past year or so. pump priming would push them even higher.

"wall street journal" economics blogger posted an article titled the qe2 criticism, writing in the article, grocery prices haven't risen all that significantly, in fact. the consumer prices, the consumer price index is measure of food and beverages for the first nine months of the year showed average annual inflation of less than 0.6%, the slowest on record since the labor department started keeping this measure. palin chose to fire back on facebook and twitter, saying about the reporter, this is what sarah palin wrote. mr. ready takes aim at this, he writes grocery prices haven't risen all that significantly in fact. sarah palin says, really? that's odd. just last thursday i read an article in "the wall street journal" titled, food sellers grit teeth, raise prices, passing along rising costs even as consumers pinch pennies. sarah palin goes on saying the article noted that an inflationary tide is beginning

to ripple through america's super markets and restaurants, dot dot dot, prices of staples including milk, beef, coffee, cocoa and sugar have risen sharply in recent months. now, i realize i'm just a former governor and current housewife from alaska, but even humble folks like me can read the newspaper. i'm surprised a prestigious reporter from "the wall street journal" doesn't. it's the kind of attack on the so-called lame stream media she relishes and her supporters love. the problem is "wall street journal" journal article palin mentions by name in this posting actually supports ready's take, not palin. and palin must have known that because see the ellipses she added? like at these that she added into this sentence. the dot dot dot there. she intentionally cut out part of the sentence that proves she's wrong. the actual sentence from "the wall street journal" reads -- let's take a look. an inflationary tide is beginning to ripple through america's super markets and restaurants threatening to end the tamest year of food pricing in nearly two decades. this is the part she cut out. the tamest year of food pricing

in nearly two decades. the original statement was that the grocery, quote, prices have risen significantly over the past year or so. now, mr. ready responded to palin's attack simply pointing out where she was wrong, saying the article she referenced, quote, does indeed report super markets and restaurants are facing cost pressures that could push retail prices higher but it hasn't happened yet on a large scale. so you'd think after mocking this reporter saying he doesn't read his own paper and is wrong, and being incorrect about it, that ms. palin would, if not apologize, at least admit her mistake. correct herself. she hasn't. and there's a pattern here. often when a reporter challenges a statement ms. palin makes or writes something she doesn't like, she lashes back, attacking the messenger, attacking the reporter, the lame stream media, giving them advice on how to do their jobs. it is kind of a constant refrain. >> don't get sucked into the lame stream media's lies. this bs coming from the lame

stream media lately. you're not getting the truth from the lame stream media about the real joe miller. >> now, supporters of sarah palin will say this story is nit-picking, much ado about nothing, an attack by "the wall street journal" and i guess now by me. it is a small matter in the grand scheme of things but all the more reason to just admit the mistake. and as for not worth reporting on, politicians' words do matter. facts do matter. fair arguments about what bernanke is doing but you don't need to make them on a mistaken fact. we all make mistakes. the difference between the lame stream media and politicians is responsible media outlets have the obligation to correct their mistakes. responsible politicians should do the same thing as well. joining me, david gergen and dana loesche. ed david, is this much ado about nothing? >> i'm very torn on this. i think your whole series about keeping them honest is extremely

important to journaljournalism. it's been very effective. on this particular one, i have to say, she was the one who was attacked by "the wall street journal" first, and she responded. >> but attacked by, he put it on -- >> he said, she made a mistake. >> right. >> and as you read the article, i think it did say that inflation was coming back. >> right. >> so that she was not entirely incorrect in saying there was higher inflation in groceries, on groceries. >> she'd been saying food prices had been going up the last several years. >> i think that's where she was incorrect. i think it was partially incorrect and partially correct. in all honesty, i don't think she should have taken the bait and gone after him, it would have been better to go on and admit it. a fellow today from slate went on, on her facebook page and pointed out the incorrections and they wiped him out. twice they wiped him out. i think that's sort of silly. but i have to say, i have a hard time getting really excited about this. i do think the larger

significance, sarah palin has gone after the federal reserve. a lot of critics would say she doesn't know what the federal reserve is and yet she's been willing to take on this thing and she's gotten favorable -- in "the wall street journal" she got a favorable editorial today saying she was right on something fairly sophisticated and i find that very interesting. it will be interesting to see how she answers questions when she doesn't have a script in front of her. >> dana, i'm sure you think this is much ado about nothing or nit-picking? >> well, it is yes and no. i think the larger point is being missed, anderson, and thanks for having me back. i have to echo what david said as well. "the wall street journal," the editorial board came out with a column sort of affirming some of the things that palin was saying, and it seems to me that it's kind of an argument between, well, which adjective was the best one to use? significantly or moderate? all the while, everyone is ignoring the bigger problem, the bigger thing, the fed wants to print more money and she's calling them out.

the whole point got lost in semantics. >> i do find it interesting, though, that she, like a lot of politicians, and it's not just her, it's republicans and democrats, people don't admit when they make a mistake. i think frankly people, the voting public would like it if somebody just said, look, okay, i made an error. we all make errors. rather than attacking the messenger. >> well, right. we see that from our government almost daily, especially with some of the stimulus estimates. but this, i mean, this whole situation with palin calling out the federal reserve, calling out ben bernanke, that, to me, is supremely important. and it got completely lost. whether or not she should have said moderate or significant, the bottom line is, this is relayed as well in "the wall street journal" article she criticized, is that food prices have been increasing. but i think she was more or less talking about the fact that you're talking about increasing, deliberate inflation from the fed, which is going to have an effect on consumers already hanging on to their dollars and

it's already giving grocers headaches and making everyone scared. so i think the bigger point was missed. >> on that, i disagree. dana made some very good points. but ben bernanke is not, he's not really trying to list the inflation rate very high. what he's trying to do is get this economy moving. he's trying to get long-term interest rates down and he's trying to get the value of stocks up, sort of asset prices as they're called, in order to give people more confidence both to buy long-term and to borrow long-term as well as people getting more confidence in the consumer. so there is a legitimate argument about what he's doing but i don't think it's fair to say, and i don't think sarah palin would be fair to say he's deliberately trying to inflate our way out of this. >> i disagree with his approach. i disagree with bernanke's approach because i think it further contributes to the environment, the economic environment that we are currently in where businesses are terrified, investors are terrified.

thus we see growth stunted. >> i want to go back to your fundamental point, anderson. there is in this country a very deep reluctance on the part of politicians to admit error. and that's because they somehow think if they admit it, they're going to get killed. you know, their opponents will run ads about it, one thing and another -- >> which is a fair argument. opponents probably would run on -- >> we've gotten to the point where the public increasingly doesn't think people are telling the truth. when they don't tell the truth they won't admit they're not telling the truth. >> do you think if sarah palin was running for president is too thin skinned? those say she goes after the media every time. politico writes an article with unnamed sources and she attacks the politico -- >> i think backing and forthing like this in a presidential campaign would hurt her campaign a lot. to go to that end point, it took the focus tonight off her argument and we got off into this sort of, you know, this side thing. which is actually, you know, sort of fun and interesting but it took the focus off her more substantive point.

i do think if she's going to run for president she's going to have to have a much thicker skin and she's going to have to let some of this go. i found it interesting she would make a speech about the fed, because for the first time i thought maybe she is running for president. to give a speech like this, i thought, wow. you don't give a speech like this. you don't wander into this terrain which is very complicated stuff unless you want to get more gravitas. she's been accused of not having gravitas. >> dana, do you think she's running? >> i don't know. i don't know if she's running or solidifying her position as a king maker because she's sort of batting .900 right now in terms of her endorsements and those who won on november 2nd. it's an interesting criticism because she sort of went above what she normally goes after, but i agree, i don't believe in fighting down and i think what she demonstrated in this particular instance was fighting down. and it sort of gave leverage and greater importance and distracted from her whole criticism of going after bernanke, going after the fed. >> that's a good way to put it.

fighting down is exactly the right way to put it. >> david gergen, dana loesche, thanks. let us know what you think, join the live chat going on right now. darrell issa has promised to hold hundreds of hearings targeting the white house. how tough does he plan to be? some say he's sending mixed messages. also ahead, president obama delivering a big speech to the islamic world tonight as he wraps up his trip to indonesia. his message to muslims ahead. ♪

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the campaign trail. once a politician gets elected, the promises and words begin to change. when congressman darrell issa ran for re-election this year, he had pretty tough things to say about the obama administration and what he would do if sent back to washington. he's expected to rub the house committee on government oversight and reform, a powerful committee charged with investigating federal programs. as chairman he would have subpoena power to investigate the obama administration. the question now is how is he going to use that new power and what will he investigate? last spring when congressman joe sestak revealed the administration was ready to offer him a job if he dropped his primary bid against arlen specter, issa called it obama's watergate and said, quote, a crime has been committed by the white house. >> an allegation has been made that multiple sources in both parties, anthony weiner, dick morris and other democrats have made it very clear, even axelrod, that they should

answer, that in fact this is serious. this is an impeachable offense, according to dick morris. it's not about what was done wrong, it's about the cover up. and right now there's a coverup going on in the white house. we can no longer trust the administration when they say we're ethical and you should trust us. >> last month when he needed votes, congressman issa had this to say about president obama on rush limbaugh's radio program. >> he has been one of the most corrupt presidents in modern times. he has ignored the very laws that he said were so vital when he was a senator. >> since election day, however, congressman issa seems to have changed his words and tone. he told wolf blitzer yesterday he can't criticize president obama on the sestak situation because the bush administration did the same thing. and when asked directly if he believes president obama's corrupt, here's what he had to say. >> do i think the president is personally corrupt, no. i should never have implied that or created that in a quick statement on a radio call-in. >> this weekend he also sounded conciliatory saying he'll conduct investigations out of the public glare in a less

partisan way. >> i have no plans to subpoena any of the current administration. i have over 100 letters out requesting information, i hope those will be provided voluntarily, pursuant to the law. >> so critics say trying to get votes he said this is one of the most corrupt presidents in history. once he had the votes he said he's not. is he backing off the heated language? not exactly. late yesterday he told politico, politico posted an interview with mr. issa, who says he's prepared to hold upwards of 280 hearings in a single year. the last two years of the bush administration, the democratic committee held 203 hearings over two years. it's a curb on federal power and protection against corruption. on his website, he points out republicans on the oversight committee have sent democrats dozens of requests for hearings, joint investigations, subpoenas

to investigate allegations of government waste, fraud and misconduct, but to no avail. so it's absolutely appropriate the republicans would want to set their own agenda now that they're in the majority. what's not clear however, is exactly what mr. issa's agenda will be. a short time ago i spoke to erick erickson, jeffrey toobin and cornell belcher. >> on the one hand he's saying he's learned the past lessons of oversight committees and is not going to be issuing subpoena after subpoena after subpoena, as was done after clinton lost in the midterms in '94, '95. he's quoted as saying, i want seven hearings a week times 40 weeks. >> it depends what he's investigating. he issued a report earlier this week, i want to investigate homeland security, i want to investigate whether the stimulus is working, this is entirely appropriate stuff and i think it's good for congress to investigate. >> there's an important role and reason there's oversight. >> absolutely. the problem is he is also given

signals he's going to indulge these crazy right wing obsessions like the new black panther party, a.c.o.r.n., which is nonsense. >> you have no concerns for republicans who have been elected by talking about financial issues and focusing on jobs and the economy, it's not going to seem like a distraction, focusing on a.c.o.r.n., for instance? >> that's the balance, and that's the game as well. the democrats will try to make it look like republicans are distracted by this and the republicans will have to work very hard to make sure they're not. there are 20-some committees in the house of representatives. they all function concurrently not one at a time, so they can do multiple things at once. >> is this just the way the game is played in washington? i was looking at henry waxman when he ran the oversight committee. he had over 200-something here hearings, about the same number issa is talking about doing. >> roughly 208 over two years. issa is talking about doing 280 in a year. you just had a referendum election that was primarily about the economy.

what's the unemployment rate at right now? and you have this congressman coming in, sort of wanting to expand these powers, to actually start new subcommittees up for investigations. this is why americans get so disgusted with washington and politics as usual. because it's not focusing on what they're focused on. >> well, we'll see. i think -- >> waxman held 203, but just for accuracy sake. >> over two years. this is 280 in a year. >> and it just depends on what the hearings are about. erick says, fine, let's investigate the new black panther party. so the question is, is it important? are they talking about issues that matter to people? the economy matters. national security matters. homeland security matter. >> but were democrats complaining when waxman was doing it? >> i think waxman was dealing with very substantive issues. waxman was talking about issues like smoking. the most famous henry waxman hearing was when he brought in all the ceos of the tobacco companies. i think that was a huge turning point.

>> let me -- during 2008 the last year of the bush administration, democrats held on oversight committees held 96 committee and subcommittee hearings. this year with the obama administration in power, the committee held 76 hearings, a drop of 21%. here's some of the topics the democrats on oversight committees decided to hold hearings on. are superweeds an outgrowth of usda biotech policy, female dc code felons, unique challenges of prison and at home, defining and fulfilling the mission of the national archives administration. >> i don't think those are trivial subjects. in the context of a big federal government, one hearing on those subjects doesn't strike me as odd at all. >> one person's trivial subject is another person's substantive subject. if the republicans aren't getting traction with these things, can you bet that john boehner will shut them down. >> i'm not even trying to score political points, and i've got to push back on you here, he's talking about doing 280 investigations in one year, more

than what waxman did in two years so it's a little different. >> i don't think the number -- >> the number matters. >> 280 hearings that are important and useful, more power to them. the question is, can he do that? no one in the history of congress ever has, so i think the odds are against him. but i just don't think the number is all that important. >> he's already walking back the idea of the a.c.o.r.n. investigation. i haven't heard on the new black panther thing, but he already seems to be trying to send the message that what he's looking at and focusing on is stuff related to jobs, stuff related to the stimulus and the like. >> well, here's the thing. if he's going to focus on that sort of thing, that's fine. but from what i've read him focusing on and some of the hard partisans he's trying to put in place in some of these subcommittees, it sounds like a witch hunt, it feels like a witch hunt. >> well, this is like henry waxman investigating bush ties to halliburton. these things come up, elections have consequences. the republicans will investigate a few of the things republican

partisans want investigated but but and large, how ever many hearings he has, they will be on substantive things, on homeland security, on white house policy on health care, on white house policy on immigration, on actual substantive legislative things that are perfectly within the purview of congress. >> do you think he's stepping back from the rhetoric he was using to get elected? is he -- he called -- >> absolutely. >> -- president obama the most corrupt president, he talked about a.c.o.r.n. an awful lot. does it seem now he's walking this back? >> there is campaign trail rhetoric and there is leadership rhetoric and he's gone into full leadership mode. they all walk it back, whether they're democrat or republican, once they get into office. that's just part of it. that's why americans are so cynical about politics, frankly. >> wait a second. do you just accept there is a complete difference between politics and government? i appreciate the cynicism, but, you know, i think we should have people held to a little bit of a higher standard than that, erick.

>> you know, i've gone beyond holding politicians really to any standard. >> well, i'm not. >> erick, seriously, though, do you believe that -- the american public clearly votes with their heart and believes in people, and if somebody on the campaign trail is saying one thing and singing a different tune when they get to d.c., isn't that hypocritical? >> 90% of the american public has never even heard of darrell issa, and they certainly don't know what he said on the campaign trail. yes they'll have some of these hearings. and by and large people will get elected to office -- >> cornell are you cynical like that, too? >> i may be more cynical than erick which is hard to believe. >> you're a pollster so you've got to be cynical. >> i saw "mr. smith goes to washington" most recently, of all these people. it's like, darrell issa, innocent until proven guilty. let's see what he does. maybe he'll do a good job. it could happen. >> jeffrey toobin, cornell belcher, erick erickson, thank you. >> of course republicans campaigned and won back the house on promises to cut the

federal budget deficit. tonight on "parker/spitzer," eliot spitzer asked rand paul to be specific about cuts he's going to propose. >> my answer to the question is that nothing is off limits. >> well, then let's -- >> let me finish. the other thing is, is that we will look at each individual program and do a step process to this. we will say, can it be downsized? can it be privatized? can it be eliminated? or can we not look at this program at all, because it's too important that it can't be cut. so we will look at this in a step-wise fashion and we will look at everything within the budget and we will make those determinations. but i'm not prepared to look at all thousand different categories and tell you what we'll cut from each one, other than i'm serious about doing this and i will introduce a budget and we'll be happy to come on back in january if you want to go through each individual item. but it's impossible to go

through each individual item of the budget and tell you exactly what percentage and what we will cut at this juncture. >> can you see more, 8:00 p.m. eastern right here on cnn. up next, president obama speaking to the muslim world. did he have anything new to say? we'll give you highlights from the president's speech. we'll play you several minutes of it. the most important part just finished moments ago in indonesia. and crime and punishment, a teen who killed just for the thrill of it. that's what a prosecutor said, in a brutal thrill kill they called it. ow, get the lay of the land. but then autoblog.com calls your interior lexus quiet. and automobile magazine goes comparing you to a cadillac. ♪ so much for the new kid fitting in with the rest of the class. the all new chevrolet cruze. starting under $17,000. get used to more. ♪ but not for your eyes.

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president obama just finished speaking in indonesia in what was his second major address to the muslim world since taking office. there's been so much focus on muslims in the united states this past year, it's gotten a lot of international attention. so we thought it worthwhile to hear for several minutes what mr. obama has to say to the muslim world. more muslims live in indonesia than any other part of the world. he touched on that and how he wants to build a better relationship between this country and the muslim world. >> religion is the final topic i want to address today. and like democracy and development, it is fundamental to the indonesian story. like the other asian nations that i'm visiting on this trip, indonesia is steeped in spirituality. a place where people worship god in many different ways. along with this rich diversity, it is also home to the world's largest muslim population.

a truth i came to know as a boy, when i heard the call to prayer across jakarta. just as individuals are not defined solely by their faith, indonesia is defined by more than its muslim population. but we also know that relations between the united states and muslim communities have frayed over many years. as president, i've made it a priority to begin to repair these relations. [ applause ] as part of that effort, i went to cairo last june and i called for a new beginning between the united states and muslims around the world. one that creates a path for us to move beyond our differences. i said then and i will repeat now, that no single speech can eradicate years of mistrust. but i believed then and i believe today that we do have a choice. we can choose to be defined by

our differences and give in to a future of suspicion and mistrust. or we can choose to do the hard work of forging common ground and commit ourselves to the steady pursuit of progress. and i can promise you, no matter what setbacks may come, the united states is committed to human progress. that is who we are, that is what we've done, and that is what we will do. [ applause ] now, we know well the issues that have caused tension for many years and these are issues i addressed in cairo. in the 17 months that have passed since that speech, we have made some progress, but we have much more work to do. innocent civilians in america, in indonesia and across the world are still targeted by violent extremism. i've made it clear america is not and never will be at war with islam. instead, all of us must work

together to defeat al qaeda and its affiliates. we have no claim to be leaders of any religion, certainly not a great world religion like islam. but those who want to build must not cede ground to terrorists who seek to destroy. in indonesia, you've made progress in rooting out extremists and combatting them, such violence. in afghanistan, we continue to work with a coalition of nations to build the capacity of the afghan government to secure its future. our shared interest is in building peace in a war-torn land. a peace that provides no safe haven for violent extremists and to provide hope for the afghan people. meanwhile, we've made progress on one of our core commitments, our effort to end the war in iraq. nearly 100,000 american troops have now left iraq under my presidency.

[ applause ] iraqis have taken full responsibility for their security. and we will continue to support iraq as it forms an inclusive government, and we will bring all of our troops home. in the middle east, we have faced false starts and setbacks. but we've been persistent in our pursuit of peace. israelis and palestinians restarted direct talks. but enormous obstacles remain. there should be no illusion that peace and security will come easy. but let there be no doubt. america will spare no effort in working for the outcome that is just and that is in the interests of all the parties involved. two states, israel and palestine, living side by side in peace and security. that is our goal. [ applause ]

the stakes are high in resolving all of these issues. for our world has grown smaller. and while those forces that connect us have unleashed great opportunity and great wealth, they also empower those who seek to derail progress. one bomb in a marketplace can obliterate the bustle of daily commerce. one whispered rumor can obscure the truth and set off violence between communities that once lived together in peace. in an age of rapid change and colliding cultures, what we share as human beings can sometimes be lost. but i believe that the history of both america and indonesia should give us hope. >> that was president obama speaking just a few minutes ago at the university of indonesia before traveling to south korea tomorrow and the g-20 summit. the former head of bp, the guy who got thrown under the bus

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check in with joe johns, see what else we're following with the "360" bulletin. >> the former head of bp is admitting his company was totally behind the eight ball in dealing with the worst oil spill in the nation's history. tony hayward told the bbc that bp was unprepared for the spill and the media frenzy that followed. hayward also said bp's ability to borrow money dried up and the company came close to financial disaster. meanwhile, there's word remnants of the spill have entered the gulf of mexico's food chain. scientists in alabama say they're not surprised they found small amounts of oil carbon in plankton in the gulf which in turn is eaten by shellfish. off the coast of mexico, a stranded cruise ship with nearly 4500 passengers and crew

members, carnival cruise lines says the ship lost power after an engine room fire. the u.s. navy is providing food and other supplies until the ship can be towed to shore. and they're not so happy about happy meals in san francisco. the board of supervisors is banning most of them until they meet certain nutritional standards. mcdonald's says it's extremely disappointed with this law. we'll talk more about this tomorrow when dr. phil is our guest. happy meals. they're sort of a guilty pleasure for kids, plus the toy. you know, that's the thing. i don't know, man. >> i was surprised to hear about it. it's interesting, the story about the oil in the food chain, they do test the stuff carefully and there have been no reports of problems. i was in new orleans this weekend, went to a lot of restaurants, ate seafood every night, had oysters and the food is as great as ever. i hope people don't read that or see that and cancel trips, because the food is safe and it

tastes better than ever. >> new orleans is just a wonderful place and it's just a shame all the sort of perils that city and that area has faced. >> i tried a new restaurant called upper line in new orleans and it's now on my list of favorites, because it's great. >> in the quarter? >> not in the quarter it's in the garden district i think or uptown, not sure which but it's near tulane and it's amazing. up next, crime and punishment, a judge says a teenager convicted in a horrific home invasion and murder belongs in a cage. that's what the judge said. we'll take you inside the courtroom and back to the beginning of the case that shocked a quiet new hampshire town. also ahead, new details from elizabeth smart about her kidnapping, how she almost escaped months earlier. i know the best card you're holding.

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crime and punishment tonight, a 19-year-old new hampshire man will spend the rest of his life in prison. he was convicted today and immediately sentenced in the machete murder last year of a woman named kimberly cates. steven spader was 18 at the time.

cates' young daughter was severely injured in the attack by another young man who will stand trial next year. it was a home invasion so brutal the sense of security in a quiet new england community was deeply shattered. deborah feyerick tonight has the story with what officials called a thrill kill. >> reporter: the judge did not mince words, sentencing steven spader to life in prison with no parole for a horrific senseless murder that shocked a small new england town. >> i could go on for days and days and days about the depth of your depravity but it is sufficient to say that you belong in a cage. >> reporter: it happened october 2009 on a dirt road as the leaves were changing. a thrill kill, prosecutors called it, for 18-year-old high school dropout steve spader and three friends. christopher gribble, who allegedly wanted to kill to see what it felt like. prosecutors describe the teens as followers of the rap group insane clown posse and claimed

their formed their own brotherhood, the disciples of destruction. court documents show they took a loyalty oath, methodically gathering knifes, machete, and ax and gloves to commit the crime. the accused attackers made their way up this dirt road in the dead of night, choosing a home that happened to belong to the cates family. it took them more than 30 minutes to find a way to break in. once inside they made their way searching through the home until they got to the last room where kimberly cates and her daughter, jamie, were sleeping. husband, david, was away on business and the alarm system was broken. spader allegedly laid out the events of the grisly night himself in a hand-written note. prosecutors say he called a bedtime story to impress fellow inmate chad landry. landry read it allowed in court. >> swinging the machete down on the mom. she screamed. then kind of gargled. then made some other weird ass noises.

i told gribble to stab her just to be sure. he did. >> reporter: he refers to gribble, this man, chris, a co-defendant, who was 19 at the time. >> they were all covered in blood. >> reporter: spaders' two other accomplices cuts deals, testifying what they saw and heard as they stood outside the bedroom door. >> steve spader walked up to her and hit her in the head with the machete. >> i heard cries for help. begging, no, no. >> reporter: kimberly cates died in her bed. 11-year-old jamie, stabbed 15 times, fell near the sliding glass doors and lay still, pretending to be dead. >> she was on the floor tangled in the curtains. >> reporter: after the attackers left, jamie called to the kitchen and called 911. >> what is your emergency? >> hello? somebody robbed my -- house. >> reporter: what makes this crime even more difficult to comprehend is how normal the

accused teenagers appeared to behave in the hours following. prosecutors say gribble spent some time doing homework before leaving with spader to meet up with other friends at a nearby mall. the two accused thrill seekers seen here just hours after the murder, selling jewelry taken from the cates' home. prosecutors say the crime was never about money, it was about the thrill. spader not only bragging to friends, but also writing about it, calling it, quote, such an adrenaline rush. the verdict, little consolation for david cates and his daughter. >> we had dreams, hopes and aspirations like any family. and all those are now shattered. >> such -- this is such just a sickening, sickening story. did they just pick this house randomly? >> reporter: completely randomly. they found a house sort of set back, even as a matter of fact there was a house next to it that was simply too big so they decided to go to this ranch-style house. what's amazing is how they just stuck with it. they couldn't get in through the

basement so they removed an air-conditioning. one of the people climbed in, opened the door, let the others in. but it took 30 to 40 minutes into the house. >> it make it's more terrifying that they just randomly picked this. they could have picked anybody's home. it makes no sense to attack the mom, and to attack this little girl, how is she doing? >> they happened to be in bed together. the father was away on business, they were together. they were very, very close. but she's playing sports again, field hockey, lacrosse. the father said her physical scars have healed but the emotional scars, it's too soon to tell what the ultimate result of that will be. so really horrifying. >> so horrible. deborah feyerick, appreciate it. up next, what elizabeth smart calls her nine months in hell. she took the stand again today in the man accused of kidnapping her. she told the court about a missed opportunity to save her. >> and take a look at these images. is that a plane or a missile? what is it? hear what the pentagon is saying, coming up. in today's business world?

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let's check in with joe johns for another news and business bulletin. elizabeth smart took the stand today in the trial of brian david mitchell, accused of kidnapping her in june 2002. smart testified about an encounter with a salt lake city, utah, detective that fall. he wanted her to lift her veil so he could see her face. smart said mitchell told the detective lifting it was not allowed in their religion. the detective asked if he could be part of their religion for a day so he could report she was not elizabeth smart. smart told the jury mitchell refused. her kidnapping ordeal did not end until the following spring when several police officers saved her from what she called her nine months in hell.

the jurors who convicted a man of killing a mother and her two daughters in a home invasion and recommend he be put to death are speaking out. one said steven hayes got life in prison, it would have been like he was going home, since he had been in and out of prison for 30 years. another talked about the emotional toll of the case. >> when i looked at the photos of the girls and mrs. petit, i hugged the photos and then i looked at dr. petit and the family and the pain, their pain became my pain. stocks took a beating today, the dow fell 60 points. the nasdaq slipped 17 and the s&p lost nine, while gold hit an all-time high, settling at more than $1400 an ounce. and a mystery in southern california. a news helicopter captured this video. to some it looks like a missile or rocket. to others it's a plane.

but the pentagon and the faa and others are at a loss and can't explain it. interesting about that, a friend of "ac 360" over at globalsecurity.org, says it's not a missile, it's actually a plane flying toward the camera, if you can believe it. >> the angle just looks like it's moving away from it. that's interesting. they say they're still investigating. at this point, the pentagon says there's no evidence this has to anything to do with the department of defense. time for tonight's shot. this is a very cute video. this baby dolphin, only about two weeks old. he was found -- he actually looks like a penguin looking at him, but found four days ago washed up on the beach, the dolphin's injuries are apparently the result of fishing net wounds. he's drinking, milk, maybe? no sign of his mom. he's being nursed back to health by marine