using them as human shields. i'm wolf blitzer. you're in "the situation room." you don't often see a cabinet member subjected to such a harsh grilling. the attorney general eric holder on the hot seat facing republicans furious over a litany of complaints. he held his ground against calls for his resignation. dana watched it all unfold. >> a botched gun-running designation known as fast and furious to a republican call for an independent investigation into leaks -- classified leaks, i should say, eric holder knew this wasn't just going to be a regular oversight hearing.

he knows he's in congress' cross hairs. but what happened was a political food fight. most republicans were tough on the attorney general, but nothing compared to this. >> there has been zero accountability at the department of justice. you won't appoint a special prosecutor in the face of a potential conflict of interest, you won't tell the truth about what you know and when you knew it on fast and furious. you won't cooperate with the legitimate congressional investigation. jon cornyn long been one of his top critics, but this five-minute litany of accusations against holder was remarkably harsh and personal. >> in short you've violated the public trust in my point of view and failing to perform the duties of your office. you leave me no alternative but to join those that call upon you to resign your office. >> with all due respect, senator, there is so much factually wrong with the

premises that you started your statement with. it's almost breathtaking. i don't have any intention of resigning. >> he isn't just a senator from texas, he also has a big political job, getting republicans elected to the senate. a fact not lost on holder. >> the desire here is not for an accommodation but for a political point making. >> republicans may have fed that point by simultaneously pummelling holder here and introducing a legislation on the senate floor calling for somewhat independent of the obama administration to investigate a series of classified leaks, which john mccain insists were political moves, maybe by the white house to make the president look good. >> i think that mr. holder for his own benefit would seek the appointment of a special council. >> back in the hearing holder argued against a special council, repeatedly insisting two u.s. attorneys he'd tapped to investigate the leaks both unanimously confirmed by the senate are scrupulous and apolitical. >> senator, i think you're missing something here.

>> i think you're missing something here. i think you're missing the fact that this is a very big deal. and a way that creates suspicions where they should not be. i don't know these people from -- >> i do know these people. and they are good lawyers. >> holder tried to beat back gop charges he has a conflict of interest by revealing he has already been interviewed. >> i can tell you that that interview was not some kind of pro forma take it easy interview. i mean, these were serious interview -- it was done by some serious fbi agents. the same thing happened to the director of the fbi as well. >> now, this whole question about whether there needs to be an independent council has become a real partisan issue despite the fact these leaks caused national security damage. that has been a very bipartisan issue. meanwhile, wolf, another big issue looms for holder. and that is next week the house republicans and key committee they're going to vote to hold him in contempt for that fast and furious program, not giving

congress documents in this hearing holder offered to sit down with republican leaders, work out a compromise and avoid what he called a constitutional crisis. that was quickly rejected by republican leaders in the house. >> given the lopsided republican majority in the house of respectives, i assume if they have a former role call vote on holding holder in contempt, it will pass. >> it's hard to imagine it won't. at least in the first step. and that is going to be in the house oversight committee next week. they're going to have a markup meeting. they're going to sit down and discuss and write up this contempt resolution in this hearing. at the end they will have a vote because of the fact you said, easy thing for the speaker to agree to to give the green light to and he resisted for quite some time. now he said okay. he's in it. he's all in it. >> well, if he supports it, i assume it will fly through the house at a lower level than of course the full house if it gets

there. thanks very much, dana bash. that harsh showdown on capitol hill comes in the context of an increasingly harsh presidential campaign. but the campaign itself isn't being taken out of context with little regard -- it is being taken out of context i should say with little regard sometimes for accuracy. jim acosta taking a closer look at the facts and some of the non-facts. >> that's right, wolf. there are so many claims flying around night now. honestly it's getting hard to keep up. the nation's most respected fact checkers are finding they're happening nearly every day in the race for the white house. and both campaigns are guilty of it. >> i'm barack obama and i approve this message. >> welcome to the out of context campaign. take this ad from the president. >> when mitt romney was governor, massachusetts was number one. number one in state debt. $18 billion in debt. more debt per person than any

other state in the country. >> the spot leaves out some important facts. yes, massachusetts was $18 billion in debt, but it was already at $16 billion when romney came into office. the ad doesn't mention that. the spot comes just one day after the white house complained the president was being taken out of context on the economy. >> the private sector's doing fine. >> but declined to take a no out of context pledge. >> can you assure us that the white house and people who speak for president obama will not take someone -- out of context? >> that's a rather remarkable question. if you're asking me if we're for good reporting filled with context, the answer is yes. >> this is a campaign that specialized in taking words out of context. it was the slurred du jour of the primary season. >> kathleen hall jamson says the out of context campaign is so out of control, her office launched factcheck.org that monitors ads that distort the

truth. from the laughter during a debate to the age of the actors in spots dealing with medicare reform. >> the danger is that people hear the sound bite repeated in ads, see it repeated in news and lose track of the original context. it becomes the reality. in the process there's a serious de. >> romney has complained he's been taken out of context. this comment from last friday. >> he says we need more firemen, more policeman, more teachers -- >> was not meant to advocate the firing of public workers. he's getting little sympathy from the obama campaign, which often points out the first romney ad of the cycle used this quote from the president without mentioning mr. obama was quoting john mccain. >> if we keep talking about the economy, we're going to lose. >> campaigning in florida, romney resurrected a claim repeatedly challenged by fact-checkers. >> this president is the one that cut $500 billion out of medicare.

my plan is to protect and save medicare, to make sure it's there not just for current seniors, but for future seniors. >> i need a pacemaker. >> as factcheck.org points out, this ad that $500 million comes out of future medicare spending. the obama campaign defends its ad on the debt in massachusetts during romney's time as governor noting it increased by 16%, although that fact is not mentioned in that ad. but that 16% number is smaller than the 50% increase in the national debt under president obama's watch. just some context to put this out of context campaign in focus. >> the problem -- i love the fact checkers and i love trying to keep them honest, all of these candidates. the fact of the matter is a lot more people will see those attack ads on television than will ever see the actual fact checking results reported. >> that's right. sometimes the fact check is only reported once, whereas an ad will mention that sound bite

from president obama, the private sector's doing fine over and over again. not just on tv. but on twitter. somebody will click on that link at 10:00 tonight and never saw the fact check that occurred earlier in the day by some news outlet. this is happening so much and it's happening so often that the fact checkers themselves are saying they're having a tough time keeping up. i talked to a gentleman with the politifact and he said it's amazing how in the last week nearly all of the claims from all the campaigns have been half truths. not full truths. >> maybe they'll create some jobs at those fact checking organizations. we'll try to do it here as well. jim acosta, thank you. let's go to jack cafferty. right now he's got the cafferty file check. >> if president obama were to go to a fortune teller this week, he might ask for his money back. in his "washington post" comment this morning titled pileup at the white house, how commerce secretary weekend car crashes and possible felony hit-and-run charge are just the latest in a

spring of bad news for the president. the list is long. stalled job growth, the wisconsin re-call defeat, attorney general eric holder facing a possible contempt of congress for refusing to cooperate fully in the fast and furious gun running investigation, bill clinton publicly commenting, congress squawking about national security leaks they say are coming from the white house, and the president himself stupidly saying that "the private sector is doing fine." really? millbank writes all of this adds up to one of the worst stretches in mr. obama's president. there's a creeping sense that the bottom has fallen out and that there may be no second term. he says top officials in the obama administration privately say they are no long expecting much economic improvement before the election. plus, there could be more bad news for the president just around the bend. the supreme court's expected to rule any day now on the fate of obama care as well as arizona's

controversial immigration law. the president has a big stake in both of those decisions. with less than five months to go before the election, there's no doubt the president could use some good news. working in his favor is the fact that polls show voters like him and he has high favorability ratings. but that might not be enough to prevent him from his own car wreck come november 6th. here's the question, how much trouble is president obama in? go to cnn.com/caffertyfile and post a comment on my blog or go to "the situation room" facebook page. if it wasn't for bad luck, wouldn't have any luck at all. >> both of these candidates have enormous amount of work over the next nearly five months. it could still go either way. very, very close in my opinion. thanks very much, jack, for that. a cuban dissis dent risks his life to tell u.s. lawmakers about the murder of a fellow activist. chilling details of what

happened to him inside a cuban jail. but first look at this. [ gunfire ] serious conflict now deemed a top -- by a top united nations official to be a full-scale civil war as we get word of yet more atrocities. and the secretary of state drops a bomb shell. she says russia is now getting ready to send attack helicopters capable of slaughtering civilians to the syrian regime. ♪ how are things on the west coast? ♪ ♪ i hear you... ♪ rocky mountain high ♪ rocky, rocky mountain high ♪ ♪ all my exes live in texas ♪ ♪ born on the bayou [ female announcer ] the perfect song for everywhere can be downloaded almost anywhere.

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syria's gone to full fledged civil war. that word coming from the united nations peace keeping chief who says bashar al-assad trying to retake cities. listen to this. [ gunfire ] the conflict has greatly intensified in recent days including the bombarding of civilian areas. opposition activists say government troops are shelling cities across the entire country. they report at least 45 people killed today. many of them women and children. a u.n. report says the syrian regime has used children as human shields and has actually tortured young kids whose parents are suspected dissidents. cites beatings, whippings and cigarette burns. u.s. officials are voicing deep

concern about the syrian government's use of helicopters against its own people calling that intolerable and unacceptable. raising fresh questions about the source of these weapons and future weapons. let's go to the pentagon. barbara, a lot of focus including from the secretary of state on russia and its military role in providing weapons to the syrian regime. >> and for good reason, wolf. russia is perhaps the main supplier of weaponry to the regime. the helicopter gunships causing havoc across the area for syrian opposition and syrian civilians. a furious secretary of state hillary clinton talked about that today and what she sees coming down the road. >> we have confronted the russians about stopping their continued arms shipments to syria. they have from time to time said that we shouldn't worry, everything they're shipping is

unrelated to their actions internally. that's patently untrue. and we are concerned about the latest information that we have that there are attack helicopters on the way from russia to syria, which will escalate the conflict quite dramatically. >> the secretary of state saying more russian helicopter gunships on their way to the regime forces. now, what are these helicopter gunships? wolf, they fire rockets and other munitions. they provide a vicious advantage to the syrian forces. they can fly over areas very quickly. they can stay up for a long period of time over a particular target and keep firing their rockets round after round after round indiscriminantly killing civilians and children on the ground. there is great growing concern about all of this. and it's posting a very awkward

problem here at the pentagon because through a defense department contract, guess what, the u.s. also buys -- the u.s. military and state department purchase russian helicopte for afghan security forces. that is of course unrelated to the syria regime. but it's the optics of the u.s. also purchasing these russian helicopters in supporting the russian arms industry that is becoming a very awkward issue here at the pentagon as they try to explain it's the only source of helicopters they can provide to the afghan forces. unrelated, but all of this really becoming a very burning question here today both political and military utility. wolf. >> i was at that luncheon when hillary clinton was speaking. she was very, very hang ri at the russians on this front. we have a lot more on this story coming up in our next hour including my interview with the jordanian foreign minister meeting with the secretary of state here in washington. there's also growing concern about a cuban dissident who

disappeared after telling u.s. lawmakers about the death of a fellow activist. brian todd's been working the story. it's a painful story as well. what's the latest? >> it's very chilling. just a few days ago a cuban dissident testified from havana about human rights abuses there. i was in the audience on capitol hill along with other journalists and citizens. but among us were also cuban operatives. and now top u.s. senators are enraged at what happened right after that man testified. by any measure it was a bold move, jorge garcia, stepped into the u.s. intersection in havana. he knew the risks of what he was about to do, but still stepped in front of a camera and testified live in front of a u.s. committee in washington. he told the senators he'd recently seen another dissident being killed by cuban authorities. >> translator: i witnessed the death of antonio ruiz in the

city of santa clara where a group of peaceful activists, myself included, were gathered to talk about liberty, freedom, justice and human rights. >> that testimony was last thursday. the next day cuban authorities surrounded his house. that's according to his wife who we spoke to by phone from cuba. she tells cnn the day after that her husband was arrested. when she went to check on him -- >> translator: i was beaten and taken to a cell. my husband was taken by state security officers. in the cell he was in they began to beat all the people that were there. the authorities came into a cell and sprayed pepper spray inside his mouth, which caused him to lose consciousness. >> then he was taken away, she says. for two days she didn't know where he was. she's just been told he's in a jail in a city of santa clara, but she's not able to see him. she fears her husband will be imprisoned for a long time. >> this is the brutality of the castro regime at work.

>> senator me nen dez attended. he fears something will happen to the dissident and he and his staff took care not to disclose in advance who was testifying from havana. we only knew other dissidents would speak when they popped up on screen. but in that u.s. senate chamber next to us. >> there were members of the castro regime at our hearing who were in the audience from the intrasection here. and i noticed that they were there. i've seen them around before and they were taking notes. >> he points out he said openly at that hearing that he knew castro's operatives were there. he warned them that the senate would react strongly if any of the witnesses were retaliated against, but within 48 hours jorge luz garcia perez was taken. from the counts of the dissident's wife, we've gotten no response.

>> there are cuban diplomats based in washington that works out of the suisse embassy. i take it these diplomats, these cuban diplomats often go up to capitol hill kp monitor hearings. >> they do. they're allowed to. he knows they're there, he recognizes their faces. there's nothing he can do. the u.s. congress is an open place. anybody can go there and testify. but the diplomats they're talking about are also in effect spies for the cuban regime and that's what they do. >> he's an interesting senator. cuban-american from new jersey very supportive of the obama administration. but he hates the fact that the obama administration last week gave a visa to the daughter of the president to come to the united states. >> butting heads with him on that very openly. >> the cuban-american senator from south florida. thanks very much. we'll stay on top of this story, brian todd. if you ever drive on a highway, you're probably expos d

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new developments just coming into "the situation room" in the trayvon martin case. lisa, what are we learning? >> this is a big one. just getting word from florida that the wife of george zimmerman has been arrested on a

perjury charge. this stems back to testimony that she gave under oath in a bond hearing which she said she had no knowledge of any amount of money in his accounted essentially pleading they had no money -- that the family had no money when indeed in fact according to authorities she had actually transferred some $74,000 in days prior to this bond hearing. that's the case authorities are making. her husband of course is the man charged with second-degree murder for the shooting death of unarmed black teenager trayvon martin. we are working to get more details on this new development. and we will bring them to you as we get them. in other news, for two decades it's been classified as a probable cause of cancer. now the world health organization says diesel exhaust is in fact a proven cause of cancer. the organization cites two new studies involving more than 12,000 mine workers. those with the highest exposure to diesel exhaust had triple the number of lung cancer deaths. in senate majority leader harry

reid is weighing in on the upset that has boxes fans reeling. the defeat of manny pacquiao for the world welter weight title. pacquiao appeared to dominate but one of the judges had the fight for bradley resulting in pacquiao's first loss in seven years. reid calls it a simple bad decision and may prompt legislation. >> as i said, i am confident that there was nothing -- i think people just make bad decisions in a lot of things they do, including judging fights. it doesn't hurt to clear the air to take a look at this. senator mccain and i have been trying for years, years, to get a national boxing bill passed here. we have not been able to do it. maybe this will be the impitous that cain and i can get back to. >> reaction described as loss, disbelief and fury.

>> a lot of sports fans very, very upset. harry reid from nevada obviously upset. i think he was a boxer once himself. so he loves that sport. >> i think a lot of people were surprised by that. it is what it is at this point. that was the decision. >> all right. lisa, thanks very much. a dire new warning for democrats and key party insiders including our own james carville. without a strategy change, president obama will lose. a massive fire scorches nearly 68 square miles. we're going live to colorado. concrete. and steel. our cloud is the smartest brains combating the latest security threats. it spans oceans, stretches continents. and is scalable as far as the mind can see. our cloud is the cloud other clouds look up to. welcome to the uppernet.

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let's get to our strategy session. joining us the democratic strategist, hillary rosen along with barbara. a republican state lawmaker in virginia and former justice department spokesperson and now a romney campaign advisor. ladies, thanks very much for coming in. you think -- i'm going to start with barbara.

you think jon cornyn saying attorney general eric holder should resign of these allegations that that could possibly come back to haunt them. >> i've been out in the private sector in these situations and on the hill. the problem is when you're the attorney general and you've lost the confidence -- not just of the republicans on the hill with the legislation, it was a bipartisan concern, so it's a miserable position for eric holder to be in. i guess i somewhat sympathize with him but i think the problem is he's lost the confidence on a number of fronts. leak investigation, on the fast and furious case and just in how he's handled these investigations. >> you were at the justice department during the bush administration. who was the attorney general? >> attorney general ashcroft. it didn't happen when i was -- >> and defended the attorney

general and encouraged him not to resign as i recall. >> leave it to attorney general ashcroft. i think it's going to stay on capitol hill. i don't think it's going to be a campaign issue that much. >> you know, republicans are calling for the attorney general to resign, but he has not lost the confidence of the american people or of democrats. this is not a bipartisan thing. this is republican election year antics. he has responded to the congressional requests on the so-called fast and furious. he's appointed u.s. attorneys to investigate what just happened on potential intelligence leaks. he's responsive. he's thoughtful. there's absolutely no reason at all that he should be responding to this election year stuff. >> calling for someone to resign, at least an allegation of criminal wrong doing. >> there's lots of documents that haven't been turned over. i'm sympathetic of the hill. >> 7,000 have been turned over.

>> he's not answering where are these documents. so that's the kind of -- we'll see. they'll hold him in contempt to get the documents. >> reluctant to hand over too many documents to the legislative branch. it's a turf battle. usually when you call for a cabinet member to resign, usually there's an allegation criminally something happened. >> i think what was significant last week was when diane finestein came out -- >> okay. let's just be clear. diane finestein asked for an investigation. the attorney general responded and appointed two u.s. attorneys. she herself has opposed what the republicans are suggesting to go further and appoint a special prosecutor. diane is supporting attorney general holder as is the president. >> you saw this memo that our own james carville, stan greenberg, who was bill clinton's poster wrote -- let me

read a line from this. it raises questions about the strategy of the obama campaign right now. we will face, they say, impossible headwind in november if we do not move to a new narrative. it is elites who are creating conventional wisdom that an incumbent president must run on economic performance and therefore must create voters things are moving in the right direction. they are wrong. that will fail. it's pretty dire if you're a democrat hearing what these two strategists have to say. >> i don't think it's dire. i think it's good advice for taking the campaign to its next level. but look, barack obama just succeeded last month in restoring all the jobs that were lost prior to him becoming president. that was a big threshold to get over. the jobs are being restored slowly, much slower than they need to be. and, yes, he's got to be talking about where he's going. but we've already seen some of that. he's talking about needing to work with congress, that congress has not passed the jobs

legislation that he's asked them to do. so i think we have seen the president and the campaign be much more aggressive about what the next steps are, what he ought -- >> you heard daniels over the weekend, the governor of indiana, saying romney needs to lay out in specific detail what he plans to do. scott walker, the governor of wisconsin says he wants to hear more from romney. a lot of pressure on him to be more specific rather than just saying i like paul ryan. >> right. but romney is laying out a very specific agenda. he's talked about the need to invest in the private sector to get jobs back in the private sector. obama simply isn't working. it's not the message. it's not how he's doing it. he's not getting results. when you have 500,000 more jobs lost, when you have sustained 40 months 8.2% unemployment, people get it. they look at their homes are valued at less, their 401(k)s are down. 40% drop in people's value of their assets. those things aren't working

because obama's policies aren't working. >> hold your thought. >> that's why we need a new president whose policies will work. that's what you had -- what carville is saying really we need a new message and president romney will give us a new message. >> unfortunately we're out of time. i take it you support romney, you support obama, correct? >> you would be right about that. it's a big hole. we're out of it. we've got a long way to go. >> and people will ask that ronald reagan question, are you better off today than four years ago? that will be very, very important. u.s. teenagers are smoking less tobacco but smoking more pot. detail of the health risks many of them don't know about. and details in the death of boxes legend and champion. >> translator: it would have been a draw. nobody would have won. ali said it and i say it. mohamed used to dance and me too, and i think we would still be dancing now.

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a massive political protest in moscow, lisa sill vester's back. some other top stories in "the situation room," what's happening? >> tens of thousands marched in the capital for the return of vladimir puttin. they say the march election he won with 65% of the vote wasn't free or fair. international monitors also said the election did not meet standards. there was no violence at the protests, but more than 250,000 people were arrested. and fewer teens are smoking cigarettes according to a new study by the centers for disease control and prevention. but more teens are smoking marijuana, which contains as much as 70% more cancer-causing

agents than tobacco smoke. the study of 15,000 high school students found 18% had smoked a cigarette in the last month compared to 23% who'd smoked pot. and cuban boxes legend, teofilo stevenson, has died at the age of 60 of a heart attack. he won three olympic medals. he was once offered a million dollars to fight muhammad ali. stevenson said what is one million dollars compared to the love of eight million cubans? earlier i said in the first story i said 250,000 people arrested -- it was 250 people arrested. i caught it as soon as it came out of my mouth. >> quite a difference. >> correct the record on that one. >> glad you fixed it. we're following a fast-moving wildfire in northern colorado right now that's scorched some 43,000 acres, burned more than 100 structures and left one person dead.

cnn affiliate in bellevue, colorado, for us, mike, what's the latest on this fire? >> reporter: more than 43,000 acres burned. this is now the third largest wildfire in colorado history, wolf. i want to give you a sense of what we're looking at here. you can see the plumes of smoke. this is the horse tooth reservoir, this is probably the southeastern most point of the wildfire. we just saw a helicopter go over the horizon there. they're dropping much needed water to the areas that need to be basically evacuated at this point. we talked to governor john hick hickenlooper about half an hour ago and his message was you need to get out of your homes if you're getting pre-evacuation notices. about 2,600 people as a matter of fact a few hours ago got those pre-evacuation notices through a phone call. that's how they do it here. it's hard to get to all the homes and knock on the doors. it's rough terrain. it is the rocky mountains here.

you can see the smoke even in downtown denver. that's how thick it's been at points the past couple days. as you said, 100 structures burned. not clear if they're homes or garages, but 100 structures are still burning. one person dead. more than 500 firefighters are here and really helping out with the efforts. we saw some of the staging area. they're getting ready. they're coming from other states around to really help the efforts here. just an all-out effort to really stop this wildfire that continues to spread today, wolf. >> mike trim, thanks very much. joining us from kmgh. we have new information on the case of four afghan women exchange students who vanished last week from the university of virginia campus. the medicare debate continues in washington...

...more talk on social security... ...but washington isn't talking to the american people. [ female announcer ] when it comes to the future of medicare and social security, you've earned the right to know. ♪ ...so what does it mean for you and your family? [ female announcer ] you've earned the facts. ♪ washington may not like straight talk, but i do. [ female announcer ] and you've earned a say. get the facts and make your voice heard on medicare and social security at earnedasay.org. on medicare and social security you know what's exciting? graduation. when i look up into my students faces, i see pride. you know, i have done something worthwhile. when i earned my doctorate through university of phoenix, that pride, that was on my face. i am jocelyn taylor. i'm committed to making a difference in people's lives,

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jack's back with a cafferty file check. >> wolf, question this hour, how much trouble is president obama in? he's having a rough week or ten days in here. dan in pennsylvania writes, i'm an obama supporter, however when it comes to some bad circumstances that seem to be piling up and hurting independent support for his re-election, they seem to be, how do you put it, many multitude nous, heaps, loads.

mark writes from houston, of course obama's got some problems. he's been president for four years. how much trouble he's been in depends on how much snake oil rhetoric the republicans are going to buy from the republicans. susan writes, how much trouble he's in can't be accurately measured until the beginning of october. the average person probably doesn't even know who the republican nominee is. i'm serious here. joy in west palm beach, jack, unfortunately he's probably in a lot of trouble, but when the media constantly shout is the negative and it's all his fight, it gets into the psyche of the electorate. i for one have faith he'll prevail. another from las vegas, it comes down to two factors, one, how is the economy headed into november? and two, do the american people really want to turn the government over to gordon gekko. everything's going to begin to snowball onto obama.

general custer in at the battle of little big horn. you want to read more, go to the blog. cnn.com/caffertyfile. jack, thank you. four afghan women vanish during a study trip to the united states. we have details of the surprise location where three of them were found. plus, the stunning new statistic showing just how badly americans have fared, especially the middle class, in the great recession. copd makes it hard to breathe,

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plus, when you insure both your home and car with us, it could save you time and money. at liberty mutual, we help you move on with your life, so get the insurance responsible drivers like you deserve. call us at... or visit your local liberty mutual office, where an agent can help you find the policy that's right for you. liberty mutual insurance, responsibility -- what's your policy? the united states government now threatening to sue the state of florida. lisa is back. she's monitoring that story. what's going on? >> that's right, wolf. the justice department says it

will take action if florida proceeds with its so-called voter purge program. the state says it's identified more than 100,000 people who may be on the voting list illegally. critics say the plan is an attempt to sway typically democratic voters from going to the polls in november. in a statement the vatican says the leadership conference of women religion "remains under the supreme direction of the vatican." the group represents 88% of american nuns. the statement followed a meeting between the nun's leaders and the cardinal who accuses the group of being too feminist and too political. look who popped in at the white house? betty white. the 90-year-old actress spent time with president obama in the oval office along with time on the white house lawn with beau. she endorsed obama's re-election last month. and earlier this year he taped a

message for a tribute to the actress. >> 90 years old and still a very, very active. >> yeah. she's got a lot of fans out there too. >> i'm one of them. what about you? >> absolutely. >> thank you. meanwhile, there are new developments in the case of four afghan women studying here in the united states who suddenly disappeared last week. our foreign affairs correspondent is working this story. what's going on. what's the latest, jill. >> wolf, so many of the people who take part in the state department programs come from war-torn countries. the idea is bring them to the united states. let them see how democracy works so they can help their homeland. this time it didn't exactly turn out that way. they came to america to learn about how governments and the law work. in order to help their own country, afghanistan, but they apparently decided not to go home. the four afghan women were part of this young professionals program at the university of virginia. 22 lawyers, judges, educators in

their 20s and 30s studying public administration and law up close. the program is sponsored by the state department. >> we are obviously concerned first and foremost as their host about ensuring their safety, ensuring that they are not in danger. we engaged local law enforcement to try to help us to locate them. and my understanding is that the fbi has now been engaged. >> an official familiar with the program says all indications are the women wanted to stay in the u.s. the official said many in the program express concern that their participation in the program could endanger their lives when they returned home to afghanistan. now, a u.s. official tells cnn three of the women were found tuesday trying to cross the border into canada. diplomatic sources tell cnn there have been previous cases of individuals disappearing from

similar exchange programs. mostly people who want a better life in the u.s. and tried to seek asylum. the state department says tens of thousands of people from around the world take part in such programs. the vast majority it says have a great experience and go back to their home countries. so the search continues for that fourth woman. meanwhile, the remaining members of that group of 22 afghans were sent home earlier than expected after the disappearances, the program was cut short. wolf. >> jill, thanks very much. you're in "the situation room," a stunning new account of how much the housing crisis has cost all of america. the average american's family net worth plummeted almost 40% in only a few years. plus, a top u.n. official says the conflict in syria has now exploded into a full-scale civil war. i'll ask the foreign minister from neighboring jordan about a

horrifying new report of children being tortured and used as human shields. and rescuers thought they were racing to find victims of a yacht explosion. now the u.s. coast guard believes it was a dangerous and very expensive hoax. we want to welcome our viewers in the united states and around the world. i'm wolf blitzer. you're in "the situation room." it's one eye-popping figure that drives down just how much americans lost as the housing market collapsed and the economy struggled. a federal reserve study found that between 2007 and 2010 families lost on average, get this, almost 40% of their net worth. that's an enormous chunk of their assets simply wiped out. lisa's been looking at these

numbers. and the people behind the numbers. and it's staggering. >> it certainly is, wolf. since the recession a lot of families have been feeling poor, but it turns out that their family wealth has truly declined. many middle class families are finding they have no financial safety net. >> i'm paying mortgage now for the house i paid. what you see here now is what it is, what i have. >> for 23 years she worked as a washington, d.c. paramedic. now retired she has little to show financially. no nest egg, little income and lots of bills. >> i'm thinking if i get my education and get a good job, i have some kind of security, they doept have that now. >> do you have it now, the security? >> no. i don't have the security. >> harris was injured on the job. she had some health insurance, but medical bills wiped out her savings. now she's on the verge of losing her home. she's finding that promised american dream is not her reality. and in the last five years she

has slipped deeper into poverty. >> yes. i was better off than i am now. better off than i am now. so that's it. >> her story could be told in just about any city or town in america. the average family's net worth dropped by a staggering 40% between 2007 and 2010. to answer why, look to the housing market. >> when net worth fell between 2007 and 2010 because of the bursting of the housing bubble, it fell really heavily on middle class families because most of their wealth is housing. >> people felt richer when housing prices were on the way up. but much of that paper wealth has been erased. the median net worth of the american family dropping from $126,400 in 2007 to $77,300 in 2010. income levels have also slipped. and if people vote with their pocketbook in mind, these numbers are troubling for president obama.

gop candidate mitt romney underscoring the point. >> people are having hard times in this country. and the president needs to go out and talk to people. not just do fundraisers. go out and talk to people in the country and find out what's happening. >> the economy had slipped off course even before president obama took office. still folks like debra harris are looking for relief, but not optimistic from getting it from either democrats or republicans. >> they don't feel us. we are just a number as far as i'm concerned to them. >> and median family income also down. couple that with the unemployment rate of 8.2% and you can see why a lot of families out there are having a really tough time, wolf. >> in fairness to president obama, the housing market started to collapse in 2007 and certainly collapsed in 2008 when the republicans, president bush, was in the white house. >> he's certainly inherited this. if you look at the timeline, that housing market, it actually happened before president obama

even entered the white house, but, it is on his watch and people are looking to him for answers. looking for that change. >> they're going to have to do a much better job explaining what's going on. that's what james carville, stan greenberg, democratic strategists have been stressing as well. thanks very much. let's dig deeper. after taking such a huge hit, will american families ever be able to recover their losses, rebuild their investments? we're joined now by the chief economist from mez ra financial, diane, thanks very much for joining us. how long will it take for these middle class families to recover from this 40% drop? >> well, you know, the key issue is that much of the 40% increase or the increase that was on the way up, the other side of that 40% was illusion nair at best. we already knew what was going on in the united states, that was a slowdown in the median income during the recession. it's a long-term trend that was

only temporarily masked by the housing market bubble. you add on top of that you now have a lot of money on the sidelines. people unwilling to make even a little bit of investment for fear they'll lose all their principle. they're actually willing to take a loss in terms of after adjusting for inflation by parking their money in a bank account or in the treasury market where they're not getting any return at all rather than fear making a more risky and productive investment in our future in things like equitequi stock market or other kinds of things out there, that means we're actually undermining our future as well. this is something the unwilling bs to make those bets and unwillingness to use credit. that may be by force rather than choice because there's not the credit available. but that is something reminiscent, not exactly the same but reminiscent in the wake of what we saw in the 1930s. >> it certainly does undermine the notion that so many generations of americans had the best investment they could make was to purchase a home because

the value of that house was going to go up and up and up and some day when they retired, the mortgage would have been paid off and they'd be free and clear, if you will. but the collapse of the value of these homes has been startling. >> exactly. that's one of the biggest issues is the largest asset for the overwhelming majority of home -- of people in the united states, and the overwhelming majority of people in the middle class is their home. as they lost ek tquity in their home, they might have had a little bit in 401(k). they might have thought they'd trade down into a condo and allow them extra money. that option isn't there anymore. these are very important things because as we move forward it can undermine and become self-feeding depending on how much it gets embedded in our behaviors as well and to the extent we're not making investments that we're also holding back and making us more conservative and we're not making what little investments we could be making in our future, that undermines our

future as well. >> i know you've studied this. so many people have studied and written books about it. but in a nutshell, who's to blame for this disaster? >> you know, frankly, we have to look in the mirror. we're all to blame for it. this really started back in the 1970s when we stopped investing in education at the very moment that the information boom burst open. we started to see the real break between the bottom 50% of income earners and the top 90th percentile of income earners, those with graduate degrees, it took an undergraduate to stay in the middle class more and more as we wept from the 80s to the 90s to 2000s. 29% of those earning a licensing degree, a short-term degree, an occupational certificate are earning more than the average bachelor degree today. so we're not training people in the right areas. the good news is when you've got an 18-month training program, that's something that can be corrected fairly quickly. so i haven't lost hope. but this is something that was really decades in the making.

and it was all of us collectively deciding that debt was an easier way to cover up and stay in the middle class than income. >> diane swonk, thanks for coming in. >> thank you. the u.s. fears russia is helping syria in a major league way right now carrying out a deadly new tactic, a firing on civilians and rebels from the air. plus, president obama's pressed to explain why voters should trust him. wait until you hear the hammering he got during some local tv interviews. and a massive coast guard rescue operation turned out to be for nothing. now a reward is being offered to find out who was behind an apparent hoax. . our cloud is made of bedrock. concrete. and steel. our cloud is the smartest brains combating the latest security threats. it spans oceans, stretches continents. and is scalable as far as the mind can see. our cloud is the cloud other clouds look up to.

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jack cafferty here with the cafferty file. >> it's tough enough to hold a job these days without constantly worrying about losing it. cnn.com reports on five telltale signs that your job could be on the chopping block.

first, mergers. they can spell trouble because a lot of jobs are duplicated. two, getting passed over for promotion is always a bad sign especially if you're more qualified than whoever gets picked for the job. three, there may be a pink slip in your future if you're asked to share your files or update another team member on your projects. this includes being asked to share passwords and contact information. four, if you're assign add project that has little to do with your regular job, it could mean your regular job won't be there when you're finished. and the fifth sign, if a computer can do your job. human resource experts say ask about feedback, track your goals and build a portfolio with all your accomplishments. the u.s. is in the midst of a long-term unemployment crisis. there are nearly 5.5 million people out of work for six months or more. that's about 43% of all the

unempl unemployed. economists call that a national emergency. if you're not already worried about losing your job, all you have to hear is that statistic that the net worth of the average american family has declined 40% from 2007 to 2010. you hear that you'll be volunteering to work nights and weekends. here is the question, how worried are you about losing your job? go to cnn.com/caffertyfile. post a comment on my blog or go to our post on "the situation room"'s facebook page. >> those are good points. nobody's asked me to share my files yet. i guess i shouldn't be too worried. >> you can tell me your password. i won't tell anybody. >> nobody's going to know. thanks, jack. thanks very much. presidents often give interviews to local reporters during an election year hoping to avoid tough questions from washington journalists. but if president obama were expecting to get some softballs from tv anchors in key battleground states, he was wrong.

our white house correspondent, brianna keilar, has more. what happened? >> there were some tough questions for sure, wolf, after a very tough week for president obama, the latest extraction is involving commerce secretary who got into a series of car crashes over the weekend and went on medical leave last night. president obama tried to get back on track and back on message with eight local television interviews. president obama went on a tour of america right from the white house interviewing with local anchors from roanoke. >> the economy in virginia has improved. >> reno. >> we've got to continue to expand more opportunities like the ones we're talking about in rural nevada. >> jacksonville, florida. >> not only is it good for the jacksonville region, it's good for the entire country. >> he also talked to stations from iowa, wisconsin, colorado, california and greensboro, south carolina, where the local news covers asheville, north carolina. a liberal enclave that helped

obama squeak out a win in the tar state in 2008. all battlegrounds with the sole exception of california. he tried to spread a positive economic message. >> the good news is is that we're starting to see progress. well, the good news is is that in rural america we're starting to see terrific progress on a number of fronts. >> it's part of the administration's so-called live from the white house series. as they did in november, local anchors broadcast from the south lawn after interviewing the president and attending the white house briefing. >> let me go again, kristen remmington. >> the local journalists brought some tough questions with them to washington. >> given the recent jobs reports, why should wooi wisconsin identities believe any proposal coming from the administration? >> the truth of the matter is we've seen significant progress in manufacturing, for example. there are a whole bunch of auto plants in wisconsin that wouldn't be open had we not

intervened and made sure that workers and management got together to revitalize the auto industry. >> don ward of colorado springs asked the president about poll numbers in his state. latest polling shows you and mr. romney about 45% right now. some of the support you had then you don't have now. what happened? >> what happened was we had the worst economic crisis since the great depression. and we're digging our way out. when we've gone through what we've gone through now, nobody's going to be completely satisfied. least of all me. >> now, wolf, there were some softballs. president obama was asked what about he thought about the nba finals. would he pick a winner? he diplomatically said he wouldn't. he was asked about singing. said he didn't want to embarrass his wife and daughters and would keep his singing under wraps in the shower for the time being, wolf. >> he's got a good voice. no doubt about that. he's spending a lot of time today fund raising. going to raise a lot of cash. six fundraisers on this one day, is that right?

>> that's right. six fundraisers in baltimore and philadelphia expecting to raise about $3.5 million. and he took on mitt romney at one of these fundraisers saying he's drawn some of the wrong lessons from his time at a large final firm. and also he pointed the finger at republicans saying that this is the economy that he inherited. obviously things we will be hearing a lot on the campaign trail, wolf. >> thanks very much. after someone leaked racy e-mails between a reporter and a top u.s. official in iraq, there's a new development in the scandal that's proven very costly for one of them already. and she helped the love of her life elude police for 16 years. today whitety bulger's girlfriend learned her fate from the judge. her sentence and a lot more news coming up. ♪

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reporter at the center of a racy e-mail scandal is out of a

job. lisa sylvester's back. she's monitoring that and other top stories in "the situation room". >> then top negotiator on the status of u.s. forces in iraq, today she agreed to resign admitting she shared articles with them before they were published. the two are now married and he's been nominated to serve as u.s. ambassador to iraq. a judge has sentenced the girlfriend of mob boss james whitey bulger to eight years in federal prison. she pleaded guilty in march to identity fraud and harboring a fugitive. the couple was captured at their california apartment a year ago after 16 years on the run. bulger is accused of committing 19 murders in south boston in the 1970s and 1980s. ing bank broke the law moving billions through the u.s. banking system on behalf of cuban and iranian clients. and now it's going to pay for it. the bank agreed to a $619 million settlement for the cover-up operations that started in the 1990s.

the dutch bank admits it intentionally altered records to make it seem like the money came from somewhere other than the sanctioned countries. and more than 30 years ago a mother became known for five words, the dingo's got my baby. now an australian court has ruled she was right. a wild dog caused the death of her 2-month-old daughter. saga was a subject of a popular 1988 movie. >> no. please. god, no. the dingo took my baby! >> yeah. we all remember that. i remember watching that movie years ago. >> meryl streep. >> yeah. 30 years later and finally have resolution in the case. >> $619 million that ing, they give that to the u.s.

government? the money goes into the u.s. treasury? is that right? >> i believe it does. i believe it goes to the u.s. government. it's a fine, essentially. they were caught doing something they shouldn't have been. i'm sure it goes -- >> we could use that. the american taxpayers. thanks very much. somewhere in syria right now government forces may be torturing, get this, torturing the child of a dissident. we'll talk about disturbing new claims of brutality by the bashar al-assad regime and the escalating violence. and does former president george h.w. bush think he'd fit into today's republican party? he's responding to his son's slap at some hyperpartisan politics. ♪ [ upbeat ] [ barks ] beneful playful life is made with energy-packed wholesome grains... and real beef and egg. to help you put more play in your day. oh, yeah? [ chris ] you can call us 24-7, get quotes online, start a claim with our smartphone app. you name it, we're here, anytime, anywhere,

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a top united nations official says the blood bath in syria is nothing less than a full-scale civil war right now. the u.n. peace keeping chief says the level of violence has increased in the past four days as the bashar al-assad regime fights to retake large chunks of territory it lost to the opposition. activists say government forces have been firing from helicopters at civilians and rebels and the secretary of state, hillary clinton, now says the united states fears russia is about to send attack helicopters to the syrian regime. >> we are concerned about the latest information we have that there are attack helicopters on the way from russia to syria, which will escalate the conflict quite dramatically. >> we're also learning more about the brutality against young syrians.

a new united nations report says pro-government forces have tortured the children of suspected dissidents and have used them as human shields. witnesses describe children being beaten, whipped with heavy cables and scarred by cigarette burns. one child allegedly was subjected to electrical shock to the genitals. the syrian crisis is being felt across the middle east and certainly in neighboring jordan. joining us here in "the situation room" is the visiting foreign minister, nasser judeh. mr. minister, thanks very much for coming in. i wish we were meeting under different circumstances, but you hear these reports that the syrian regime of bashar al-assad is torturing little kids right now because their parents may be dissidents? what do you say to them? >> we're hearing the same things you're hearing. we've been following the situation. we're monitoring it. we're right next door to syria. we've been seeing the violence over the last 13, 14 months. we've been seeing the spillover,

the humanitarian fallout coming into jordan. we've been saying from day one, and i was on your show when it all began, and we were saying this has got to stop. the violence has got to end. the killing has got to finish. and we need the political solution because every single day that goes by there's more killing. we were all condemning the massacre a few weeks ago, but every day there's a massacre on scale. >> i was at the luncheon today sponsored by the brookings institution here in washington. she says as other u.s. officials including the president have said bashar al-assad, the president of syria, must go. there can be no solution with him remaining in power. is that the same position that the jordanian government has? >> well, we're in touch with our american friends. i've been here. i met with the secretary of state. and i met with different officials. and we met a few days ago in istanbul, the core group of ministers and the secretary of state was there as well as many other foreign ministers. and we're saying at the end of the day it's got to be a managed

political solution. >> can there be a solution with bashar al-assad remaining as president of syria? >> it depends on if you want an all- all- all-inclusive process or not. perhaps one intelligent way of doing it is there has to be a political process that has an inevitable outcome. >> so as far as u.s. and other countries. >> i think we're very clear and said what we've said many times. at the end of the day it is a question of what the syrians want. but this cannot continue. we have to pull our efforts together. we've said before the inevitable outcome of this could well be the departure of the regime, but it's not about changing faces, it's about change for the better. change where the syrians can enjoy peace and security and stability and the killing stops. >> you heard the secretary also say that russia is sending attack helicopters to syria. helicopters that could slaughter civilia civilians, some of these attack helicopters. you've seen these reports. >> i've just seen the secretary

of state saying that she's hearing -- >> what do you say to the government? she says this is unacceptable, potentially a game changer and demanding that the russians stop this. >> well, the russians insist that they're not. and the secretary of state just said as i heard with you that she's hearing reports. i think we have to wait for confirmation on that. at the end of the day, we're all in agreement. there are different dynamics and different directions but all pouring into the same pot which is we have to have an all-inclusive. at the end of the day the regime in syria seems to think that russia's supporting them whereas russia is assuring us all that they just don't want syria to slip into a civil war or instability or chaos. >> u.n. peace keeper -- the chief of the u.n. peace keepers says it's a full-scale all-blownout civil war in syria right now. is that what you're see sng. >> we're seeing the chilling effects of kofi annan saying if the plan does not work it will slide to civil war.

i think you can call it different names and describe it in different ways. the killing is continuing, the violence is continuing and syria is sliding. whether it's full-fledged civil war at this stage or getting close to that, the end result is the same. it's people being killed. it's bloodshed continuing. but i think the kofi annan plan is the only game in town. we've got to support that. it's kofi annan who will decide at the end of the day. and expires on 19th of july if his plan is being implemented or not. and then the ball is in a different court. >> she said there was one suggestion that iran should be part of that group working with kofi annan. but hillary clinton said at this luncheon today that under no circumstances would the u.s. go along with iran playing any role since she accused the iranian regime of actually funding, supporting, training, fully in bed with what the syrian regime of what bashar al-assad is doing in syria right now. are you on board with that? >> we've had discussions over this. i think there's general agreement that bringing iran into this is going to create

unnecessary controversy. it's going to dilute the issue at hand, which is how to resolve this. so if we're going to start arguing about whether iran should be that or shouldn't be that and the agreement that it shouldn't be that, i think we're getting to the main core issue. >> on iran and potential for developing a nuclear bomb, listen to what the secretary of state said today. >> the continuing effort by the iranians to extend their influence and to use terror as a tool to do so extends to our hemisphere and all the way to east asia. so the threat is real. we're dealing with a regime that has hedge monic ambitions. >> i think she's suggesting that iran is really using its influence to build up support in iraq, in syria, in lebanon,

which potentially could be a huge geostrategic disaster for jordan. >> not to mention the threats of the security of the gulf states. i think the secretary's pointing to something that we're all worrying against. there are three issues. the iranian nuclear front if it continues as is without diplomatic solution, it's going to spark -- >> opposes any nuclear iran. >> well, jordan actually calls for a nuclear free middle east and a middle east free of weapons of mass destruction in its entirety. we are pursuing our own nuclear program for peaceful energy. and we're doing it under international scrutiny and iaea et cetera. so, yes, we believe a militarized knew clear program is going to spark instability and threats is going to create further instability and interference in the face of out of countries. so i think we're hoping that the

round of discussions in the p5 plus 1 in moscow, we've had two rounds now. let's wait and see. >> foreign minister of the u.s. jordanian relationship right now is i take it solid? >> not only a friendship but a true partnership. we have a meeting of minds on so many issues. we have so many challenges we meet together. we are grateful for the support we get from our friends here in the u.s., across the board, administration, on the hill, things went very, very well. >> please pass my best along to king abdul la. a day after jed bush and his father ronald reagan would have trouble fitting into today's republican party, george h.w. bush responds. and a lobster boat captain and a crew haul in a rare catch. check out this guy, the story behind the catch from the deep blue sea. ♪

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rolling out the red carpet today for george herbert walker bush near the 41st president's summer home in maine. it's an honor of a new documentary about the former president's life. today also happens to be his 88th birthday. happy birthday, mr. president. marry snow is joining us. >> the family said this place is really like a rock for the bush family. and president bush, as you know, has often said that his mother

instilled in him at a very young age never to talk about himself. that's why this movie is such a big deal. he never wrote a memoir. this is an hbo movie, corporate cousin of cnn since we're both owned by the parent time warner. this movie the director says it's not so much about politics but about the personal side of former president bush where he opened up including talking about how he felt when his son was elected president. take a listen. >> what was it like to see your son elected president? >> very emotional for me. very proud father. first time it's happened i guess in the history of our country except for the adams'. it was mind boggling. it was enormous. source of great pride for the family for the father. >> now, former president george w. bush is here today, but he came to the movie theater

through a private entrance and didn't face the press. jeb bush, former governor, is not here. he made headlines just yesterday by suggesting that perhaps his father and former president reagan would have a tough time in the republican party today because there isn't room for disagreement. i got a chance to ask a quick question to former president bush about that. here's what he had to say. >> i saw that, yeah. >> what did you think of that? >> i know what he's getting at. i don't think it would be difficult. >> the former president saying he wouldn't think that he'd have a difficult time in this climate. but today, wolf, really not so much about politics but about personal side. and the president's son, neil, got choked up when i asked him how his father was doing. he said, yes, he has slowed down physically. you saw he was in a wheelchair. but he said his father still has a great attitude. and former president bush has said he wants to go sky diving for his 90th birthday.

you know he did that on his 85th. wolf. >> amazing man. we wish him a happy birthday and hopefully has many, many happy years ahead of him. mary, thanks very much. a programming note for our viewers out there, the hbo film airs june 14th on our sister network hbo 9:00 p.m. eastern. a day after rumors swirled that egypt's ousted leader was near death, we're learning new details about his condition. lisa sylvester's monitoring that and other top stories in "the situation room." what's the latest? >> hosni mubarak said to be clinging to life slipping in and out of consciousness. an interior ministry spokesman says his condition has stabilized. the 84-year-old was sentenced to life in prison a week and a half ago. more than 800 pro-democracy demonstrators were killed in the process that forced him out of office. and a father beat a man to death after reportedly catching him molesting his 4-year-old daughter. investigators say the 47-year-old man had been hired

to help the dad on his rural texas ranch. the girl and her brother were sent to feed chickens, but the brother came back saying she has been taken. authority saying a grand jury will decide if any charges will be filed against the father. and a violent mexican drug cartel sent millions of dollars of cash into the united states and used it to buy racehorses. that's according to federal authorities who arrested seven individuals associated with the cartel scheme today. officials also indicted the cartel's leaders in mexico saying they coordinated the shipment of large amounts of cocaine and marijuana to the united states. and a canadian lobster man and his crew had a very interesting catch recently. take a look here. this is a rare blue lobster. they are one in a two million phenomenon according to the university of maine's lobster institute. a genetic variation causes it to produce an excessive amount of a protein that turns it blue. this guy is now living in a

holding tank at the lobster man's business. that's amazing to look at that. a blue lobster. >> are they going to cook that? are they going to steam it? >> no chance they're going to eat that guy. he's going to be a living lobster for a while. one of the lucky ones. >> thanks very much, lisa. it was dangerous. it was expensive. and apparently it was also a hoax. we're taking a closer look at how the u.s. coast guard rescue that amounted to actually nothing and the search for the person or people behind it. stand by. and a snap between oprah winfrey and a rap star. it all goes to the dogs now. cleaner energy, to, while protecting our environment. across america, these technologies protect air - by monitoring air quality and reducing emissions... ...protect water - through conservation and self-contained recycling systems... ... and protect land - by reducing our footprint and respecting wildlife. america's natural gas... domestic, abundant, clean energy to power our lives...

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around this time yesterday it seemed as though a disaster was unfolding off the coast of new jersey. it began with a distress call claiming there was an explosion on board a yacht. it ended with coast guard officials saying they believe the whole thing was a hoax. now they're offering a $3,000 reward to find out who was behind it. let's bring in our aviation and regulation correspondent. this is serious stuff. >> this is serious stuff. it turned out to be a hoax, but the coast guard's investigative arm is now trying to figure out who perpetrated what was potentially a dangerous and

certainly very expensive hoax. >> u.s. coast guard. motor got -- >> the distress call came at 4:20 p.m. the caller sounded knowledgeable, convincing and in big trouble. >> we have 21 souls on board. 20 in the water right now. i have three deceased on board. nine injured because of the explosion we've had. i'm in three feet of water on the bridge. i'm going to stay by the radio as long as i can before i have to go overboard. >> the response was massive. some 200 first responders, ambulances and stretchers lined up on shore. a half dozen helicopters at sandy hook point. but no one could find any trace of the yacht. >> after a couple of hours searching, we were -- we became concerned that we saw no indication of life rafts and saw no indication of a sunken vessel or a fire. >> the search lasted about four

hours and cost at least $88,000. >> more importantly, we diverted several first responders in the area from standby for actual search and rescue cases out into the middle of the atlantic ocean to look for a vessel that had not sunk. >> a fake distress call is a federal felony with a maximum penalty of five to ten years in prison and a $250,000 fine. the coast guard says this one came from a radio on land in new jersey or southern new york. they've had almost 60 hoaxes in the new york region just in the past year. they've also happened in michigan, texas, north carolina and florida. here's a hoax from miami. >> may day. may day. may day. >> even as they search for who did this, the coast guard says they may already know why. >> some people just want attention. that's usually the biggest reason. they like to see all the responders go out and actively

search for something that they caused. >> now, the coast guard says even though they get so many hoax calls, they still assume that just about every call is real. almost a $10,000 fine. >> you would think in this day and age they could trace these calls where they're coming from. >> they believe it was coming from somewhere on shore. >> thanks very much, lizzie. this is obviously a very serious matter. appreciate it. let's go to jack right now for the cafferty file check. >> jim writes i work in the software industry. i'm always worried.

i try to be smart about it and have money in the bank for those times when i'm not employed full time. paul in texas writes i've been out of work since september of 2011. and i'm still looking. i'm older. not at the magic 66 years to retire. and even if i was i couldn't afford to. at this point i'm ready to take anything i can find. and i pray kr writes i live in the detroit >> if i could leave i would. tom in florida, i am not worried at all. i do industrial maintenance in a manufacturing plant. nobody in america wants my job. bob in texas, i am not worried, jack, i have no one to blame but myself. i eek out a living best i can, mostly on the internet. chances of my ever being employed are so minuscule, i just stopped worrying about it, take life a day at a time. i may be poor but i have never been happier. sarah writes from oregon not at all. i already lost my job. i think a lot of the jobs aren't

coming back. businesses figured out how to do more with less. as long as they stay in the black, nothing will change. jimmy in north carolina says i am so terrified of losing my job, i had begun laughing at the boss' stupid jokes. if you want to read more, cnn.com/caffertyfile. >> ever watch mad men on cable? >> i saw one episode of it. and i meant to watch more. i just haven't gotten around to it. got stuck with the basketball and baseball at night. >> madman, excellent, especially and i know you appreciate it. you live through the '60s, if you have a chance, curious to see what you think, there's always somebody losing his or her job on madison avenue. >> and arguably, times were considerably better on the unemployment front as far as the economy is concerned back in the '60s, certainly in the '50s than now. i guess times were tough then,

but i'll check it out. my producer watches it religiously. >> of course she does. i do, too. >> i am on the outside looking in. >> with your cable operator, you can watch it on demand. >> i don't know how to do that! >> we'll talk. thank you. jack cafferty with the cafferty file. celebrities are happy to have their names attached to all kinds of things, foundations, buildings, stars on the hollywood walk of fame, but pets, not so much. when it happened to oprah, she didn't take it lightly. that story next. [ male announcer ] now you can swipe...

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a lot goes into picking of

the perfect name for a puppy, bella, abby, maybe zoe. according to petmd.com, those are the top names for female dogs. the name oprah, not among top picks. one person thought it was the perfect choice. here is cnn's jeanne moos. >> reporter: at least rapper 50 cent didn't call oprah a dog, but he did call his dog oprah. >> you named your dog oprah, that was not a compliment. >> i have a tattoo. >> gail. >> gayle king, her best friend. they had a feud going. she campaigned against use of the "n" word in rap, said some was degrading to women. 50 took it personally, then fired back. he didn't just name his dog oprah, he started a twitter account for oprah the dog, sending twit picks and foul mouthed tweets. while oprah the dog was lmto, laughing my tail off, oprah the

celebrity wasn't. now years later on her own network, she asked 50 to his face. >> heard you had a bitch named oprah. >> he spent much of the interview not looking at oprah. >> you have a dog named oprah. i consider that a compliment. whether you meant it to be one or not. >> i love you. you know, they say dog is man's best friend. >> reporter: lots of celebs name their dogs after other celebs and usually mean it as an honor. jennifer garner has a lab named after martha stewart. >> this is one martha stewart, this is the other. >> reporter: jennifer is a fan of martha. she also used to have a dog named charlie rose. back when kathie lee and regis used to cohost, he was asking her to name her babies after him, so she counter offered. >> if i adopt a puppy from the pound and name it regis, will you get off my back. he goes would you do that for me?

>> reporter: he would and she did. in 2009, movie called "i love you man" featured this pug beagle mix. >> he is cute. what's his name? >> and war saddat. because they look alike. >> reporter: the daughter of the egyptian president disagreed, filed a lawsuit and complained to the u.s. embassy. as for 50 cent, he gave oprah a serious answer why he named the dog after her. >> developing negative feelings for someone that doesn't know me. >> reporter: by the end of the interview, the two sniffed and made up. >> here, regis, come on, martha, good girl, oprah, good girl. >> reporter: don't call me a dog, i am a donkey. jeanne moos, cnn. new york. >> thank you. years ago, a dog was running at the hollywood race track for dogs named woof blitzer.

that dog i think did well. thanks very much for joining us. i'm wolf blitzer in the situation room. the news continues next on cnn. good evening, i'm john king. tonight, republicans teller i can holder he mislead them about drug trafficking program and say he can't be trusted now to investigate major intelligence leaks. holder he defends his record. more dramatic testimony on day two of the jerry sandusky trial. court documents suggest penn state administrators kept secret files about the long time assistant football coach. and secretary of state hillary clinton lashes out against russia, accusing it of shipping attack helicopters to syria as the assad has a crackdown on dissent. we begin with today's dramatic, intensely partisan confrontations between senate republicans and attorney general of the united states. a feisty appearance before the senate