Inches of snow in nebraska. Winter storm warning. That is the plains and i know they get it but weve been calling it the triple threat. Theres heavy snow on the north side, severe storms and flooding to the southeast and in between not even drawn in here is an ice storm for springfield, missouri. Heres the snow t does snow in denver along the front range and it eventually moves out by tomorrow night into salina. Heavy snow by tomorrow morning in kansas city and getting a little snow into chicago before its all said and done. Chicago, they are used to that. Thats right. Thanks, chad. Appreciate that. Thats going to do it for me. See you tomorrow. The situation room with wolf blitzer starts right now. Fred, thanks very much. Happening now, prosecutors say the accused murderer Oscar Pistorius and his girlfriend argued for an hour before she was shot. We have the latest revelations in this sensational case. The Catholic Church grappling with questions that havent been asked in centuries. Where does an expope live and can they speed up the process of choosing a new pope . And the glory days of rocket men. An exclusive look at how the rocket business is booming. Im wolf blitzer. Youre in the situation room. Imagine getting every friday off for the next 22 weeks. But theres a catch. You wont get paid. Youll be forced to give up 20 of your weekly paycheck. Thats the prospect facing thousands of people whose jobs depend on the Defense Department and are now facing furloughs. Our pentagon correspondent Barbara Starr has one workers stories. Shes joining us. Barbara . Wolf, weve heard about this fancy washington word sequester for months now. What does it really mean . It means for hundreds and thousands of federal workers trying to figure out how to live on less. Maintaining fighter jets and warships at the ready, providing care at military hospitals, crucial military functions done by some 800,000 civilian workers. Now the pentagon has told congress these workers will be forced to stay home one day a week without pay if mandatory spending cuts are not averted. Everybody is waiting to hear. Its definitely become the new f word here. Furlough. For federal workers it will mean painful decisions. Peter is already making plans. Ill pay those core bills. Ill pay the mortgage and the utilities and then you live on whats left. The head of the Government Workers Union says his people have already suffered. Already these employees have suffered a 27month pay freeze. Now a 20 pay cut. The impact of a one day a week furlough for 22 weeks will be widespread. On our civilians, it will be catastrophic. These critical members of our workforce, they work in our depos. They maintain and work on our crafts, our ships, they teach our kids. But how much do furloughs really save . Of the 46 billion in mandated military cuts, the pentagon calculates it will account for 10 . The number two official at the Defense Department is vowing to stand with his workers. I cant be furloughed under the law because im a president ial appointee. But im going to give back a fifth of my salary in the last seven months of the year. Now, there will be exemptions, we are told, workers who are essential for safety and security of military bases and other facilities, some health care workers, some military Law Enforcement personnel. But this if it goes into effect, wolf, will hit very hard beginning in the march april time frame. Wolf . We know the pentagon will be cut 46 million for a total of the fiscal year. But how much discretion do they have at the pentagon, barbara . Can they get rid of big ticket gun programs, weapons instead of furloughing these thousands of people, for example . They say they cannot do that, wolf. Essentially, sequestration, that word again, means mandatory across the board budget cuts. Everybody takes a hit. So they say they cant do that. The military will not furlough workers on bases around the world and there are at least 100 bases around the world. Only bases in the United States can be furloughed. Why is that . In many cases these foreign nonu. S. Workers are paid by the local countries so theres no savings there. In other cases, they would have to renegotiate essentially employment agreements with that government. That opens up a can of worms. A lot of this is just set in stone, very little discretion about how to carry all of this out if it comes to that, wolf. 46 billion in Defense Department cuts, according to this forced budget plan cut. Just for some perspective, the u. S. Is going to spend 88 billion this year, this year in afghanistan. Were going to have much more on this part of the story coming up later, barbara. Thanks very much into here in washington, president obama is doing an end around the National Press today. Hes taking questions from local tv stations, blaming congress for doing nothing to avoid these forced spending cuts scheduled to take effect in just nine days. So what kind of cuts is the president willing to take . Jim acosta confronted the White House Press secretary today with that question. Jim is joining us now. How did it go . Reporter wolf, here we go again. The white house and Congress Move one day closer to the massive forced spending cuts that go into effect at the end of next week. And even though they both agree its a problem, they are both busy blaming each other to fix it. The white house sounding the alarm. Poor children will be tossed out of classrooms, Health Services will be slashed, Border Security will be compromised and the economy will take a hit if forced budgets cuts begin to happen on march 1st and the Obama Administration says republicans will be to blame. The pleas that the republicans are making are throw these people out of work. Its just it makes no sense. Reporter but when pressed on whether the president has his own plan to stop the cuts, White House Press secretary jay carney pointed to the grand bargain mr. Obama failed to reach with House Speaker john boehner two careers ago. When you ask wheres the president s plan, its been there. Its at whitehouse. Gov. A budget plan for the long term, where is the president the president take the lead and first of all, congress has to act. Reporter less than two months since the fiscal cliff that resulted in tax increases on wealthy americans. Boehner notes the idea for the automatic cuts originated in the white house adding mr. President , we agree that your sequester is bad policy. What spending are you willing to cut to replace it . The white house fires back pointing out boehner seems satisfied when it was all set in motion two years ago as part of the debt ceiling deal of 2011. When you look at this deal that i came with the white house, i got 98 of what i wanted. Im pretty happy. Max baulk cause saying that the president shares some of as you mentioned, at the top of this piece, wolf, the president is speaking with a number of local tv stations around the country. Its part of the white house plan to go over the heads of congress and sort of sell the administrations position on these forced budget cuts to the American People and, wolf, i had a chance to ask a top gop aide up on capitol hill whether or not the administration is engaging in any new outreach with members of congress, with leaders on the republican side up on capitol hill and the word i got back from that aide was no new outreach, no old anything. There are signs that the white house is not even sure as to the extent of these sequestered cuts and how far they will go. When asked if there will be furloughs here at the white house, press secretary jay carney said he was not sure and would have to get back to reporters and not sure whether it would affect the president s Upcoming Trip to the middle east. We had a little Technical Glitch at the end of that report, that piece that you put together. As far as the 85 billion in forced cuts expected to take place this year, everyone seems to think that the mandatory across the board cuts is a bad idea. Is there a specific white house plan that has now been released for an alternative 85 billion in spending cuts . Reporter no, there is not a specific plan. That is what we tried to press jay carney on earlier this afternoon. They are pointing to the plan that Senate Democrats came up with last week that they say would essentially replace the sequestered cuts that are supposed to go in to place. The republicans are baulking at that proposal. They are saying no dice on that. That proposal includes tax increases on wealthier americans, the socalled buffett rule and thats not going anywhere up on capitol hill. Unless both sides can somehow come to an agreement and weve said all of this before, weve heard these words before, wolf, unless there is some kind of deal that can be cut in the hours before this deadline comes up late next week, this thing is going to happen, wolf. Jim acosta over at the white house, thanks very much. This note to our viewers. Later this hour ill try to get some specific answers about what cuts the folks at the white house are willing to make right away to avoid these forced budget cuts. Ill be speaking live with the president s senior adviser, dan five officer. Hell be joining us from the white house. Out of control spending isnt just a federal problem. Detroit is in such dire financial trouble, a Blue Ribbon Panel predicts a 100 million shortfall by the end of the year. Michigans governor has 30 days to decide whether to put an emergency manager in charge of the city. Detroit was once the nations fifth largest city and now ranks 18th having lost a quarter of its population since 2000. Tomorrow, the detroit mayor dave bing will be joining me here in the situation room. Ill ask him what, if anything, can be done to save his city from bankruptcy. And now we turn to the latest revelations in the sensational murder allegations against Oscar Pistorius. He says he shot and killed his girlfriend, the model Reeva Steenkamp, by accident. Prosecutors say the killing was intentional and premeditated. Cnns robyn curnow is joining us from johannasberg, south africa. The prosecutors laid out their plan. How did they do . Reporter it was like a roller coaster. I felt like i was watching a television drama. Initially when the prosecutor laid out their case, they gave damning evidence and found two boxes of testosterone and syringes in his house. By the time the defense came in after lunch, bit by bit they ripped apart the states evidence and unravelled quite spectacularly at one stage because there was quite an Interesting Exchange between Oscar Pistorius lawyers and the investigating officer and he said, well, how do you know this is testosterone . Have you tested it yet . And he said, no, i just read the label on the box. And he said, if you had gone to any pharmacy or any chemist, would you know that this is a herbal medicine. Thats the kind of interchange taking place. Also, the investigating officer really looking quite redfaced by the end of his stint. He admitted that he he didnt wear protective foot covers or shoe covers when he he walked into the house so he contaminated the crime scene. And we also know that the defense said that they had this key witness that had heard shouting, arguing in the hour before the shooting but when pressed further, it emerged, much to the shock the court gasped, it emerged that this witness lived 300 or more meters, thats more than 1 thourk feet away from Oscar Pistorius house. Really various aspects of the states case started unraveling and i think for anybody who supports oscar they would have been pleased with that outcome. His family issuing a statement that they found they were satisfied with the bail hearing, particularly, i must say and this is the clincher, wolf the investigating officer said that he actually couldnt find any inconsistencies with Oscar Pistorius version of events. Thats obviously good news for oscar over there. Did you see a difference in his demeanor . Yesterday he was sobbing, he was breaking down. What about today . Reporter absolutely. We talked about it. He was physically sort of bent over yesterday and physically he seemed to sit straighter today and for me that told a lot, that he seemed to be dealing with the information that was coming out of the court a little bit better, obviously because his defense team was really hammering holes into the defense case. Let me give you a sense of what his family is saying. His uncle has been talking to the press. Take a listen to this. Hes in extremely shock and so hes grieving and hes i dont expect him to get over it even soon and so hes still emotionally reporter of course, all of the focus on the drama in the courtroom today but many South Africans say Oscar Pistorius spent his seven night in jail, just remember Reeva Steenkamps family, their seventh night of realizing, trying to come to deal with the fact that shes not around anymore. That she wont be here. So still a very emotional day but very much a focus on the court proceedings. And just very quickly, they resumed the hearing tomorrow, is that the last day . Will we know whether he will be eligible for bail or will he have to stay in prison . Reporter you know what, wolf, im just a humbled journalist. Im not a legal expert but from what i understand there will be some sort of ruling by the magistrate tomorrow after the final arguments are made by each legals team, its understood the magistrate will rule whether he will get bail or not. Its uncan clear how hes going to think and which way hes going to go. Im not a betting person but just by the tone of what happened in court today, many people here, legal experts, journalists listening observe firmly believe oscar will get bail. But like i said, im not a legal expert but well have to see. Well certainly will have to check back with you, robyn, thank you. Were about to meet a man new to washington but already making serious waves. Whether you recognize him or not, stick around. Were going to tell you who he he is and why you need to Pay Attention to what hes doing. Later, the Catholic Church scrambling to come up with a Retirement Plan for the soontobe expope. [ male announcer ] your Favorite Foods fighting you . Fight back fast with tums. Calciumrich tums starts working so fast youll forget you had heartburn. Tum tum tum tum tums but at xerox weve embraced a new role. Working behind the scenes to provide companies with services. Like helping hr departments manage benefits and pensions for over 11 million employees. Reducing document costs by up to 30 . And processing 421 billion dollars in accounts payables each year. Helping thousands of companies simplify how work gets done. Hows that for an encore . With xerox, youre ready for real business. See lioutdoors, or in. Ight. Transitions® lenses automatically filter just the right amount of light. So you see everything the way its meant to be seen. Maybe even a little better. Visit your eyecare professional today to ask about our newest lenses, transitions vantage and transitions xtractive lenses. Experience life well lit. Ask which transitions adaptive lens is best for you. If we lose our liberty here, where do we go . It aint rocket science. What do we need to do . Stop spending money. And to ex clis sit plea agree as the worlds bully, i would sult, is not the conduct one would expect of a secretary of defense. Thats one of washingtons newest arrivals who is already making some big waves. Dana bash caught up with the new senator from texas. You just came back from texas. How did it go . Very interesting. Ted cruz is one of the few gop faces in the senate and hes already making sure hes a powerful voice of the gop. It had the look and feel of a campaign event. Except freshman gop senator ted cruz isnt up for reelection for six years. These texans are applauding their senators headturning performance after only one month in office. Mr. Cruz, no. Joining only two others to vote against john kerry for secretary of state, aggressively defending gun rights and trying to take down defense secretary nominee chuck hagel. Ive covered the senate for a long time. Its unusual for a freshman to be this out spoken on a high profile issue. At the end of the day, i was elected to represent 26 million texans and to speak the truth. You know, i think a lot of americans are tired of politicians in washington and both parties who play games. The 42yearold cubanamerican, the first hispanic governor from texas memorized the constitution as a teenager, thanks to his father, a cuban refugee. Cruz became solicitor general of texas, arguing for states rights and religious freedom before the u. S. Supreme court. Tea Party Activist bucked the gop establishment to help elect cruz and now see their hard work paying off. Hes the total package. Hes brilliant. Hes a great messenger for ideas and hes a guy you never have to wonder how hes going to vote. Conservatives here in texas who fuel behind Tea Party Senate win hes been so aggressive so fast but for some senior senators, not so much. One of the Guiding Principles for a freshman senator is come in and be a workhorse, not a show horse. You dont seem to be following that. The attention that has focused on me, in my opinion, is actually primarily being driven by an effort to distract from merits of the hagel nomination. Cruz angers senators in both parties demanding to know without evidence if hagel received money from Foreign Countries that opposed u. S. Interest. If that 200,000 that he deposited in his bank account came directly from saudi arabia, came directly from north korea that got him a smackdown from john mccain. No one on this committee at any time should impune his character or integrity. From democrats, suggestions of mccarthyiasm. It was rep nis sent of bad times. I do find it ironic in the course of labeling me, they also chide me for not respecting comedy. Its clear cruz did not run for senate to make friends. I find it amusing that those in washington are puzzled when someone actually does what they said they would do. Now one gop senator i spoke to about cruz saying that even in the case of healthy egos, cruz stands out for his ego and a tea Party Activist said that, wolf, he could do well with a small dose of humor. But still its very clear, talking to cruz, watching him, he relishes the kind of criticism. A lot of republicans will reject the nomination of chuck hagel to be defense secretary but only three. He was one of them, rejected john kerry. Why did he he reject john kerry . Because john kerry has agreed to and supported too Many International treaties that give up the sovereignty of the u. S. When you look at the core of the conservative that it espouses, that is it. Obviously hes a smart guy if he mem ritzed the whole constitution. Is he a very smart guy. Harvard high school . Thank you for that reporting. Coming up, Carnival Cruise lines facing more trouble after the disaster of its triumph cruise liner. This time from passengers who are not taking the offered compensation and are saying, well see you in court. Is intensified with a serum. Its proven to be 4x better at smoothing lines and deep wrinkles than professional treatments. Roc® max for maximum results. But im still stubbed up. [ male announcer ] truth is, nyquil doesnt unstuff your nose. What . [ male announcer ] alkaseltzer plus liquid gels speeds relief to your worst cold symptoms plus has a decongestant for your stuffy nose. Thanks. Thats the cold truth thanks. Through sunday, save up to 500 on beautyrest and posturepedic. E savings go on at sleep train. Get a sealy queen set for just 399. Even get 3 years interestfree financing on tempurpedic. Plus, free delivery, setup, and removal of your old set. Keep more president s in your wallet. Sleep trains president s day sale ends sunday. Superior service, best selection, lowest price, guaranteed. Sleep train your ticket to a better nights sleep kansas city is still reeling from a blast that levelled a restaurant last night. Lisa sylvester is monitoring that and some of the other stories. Whats going on . We actually have new video of the moment that that blast hit. Officials say it is too soon to say if more than one person was killed in last nights natural gas explosion. At least 15 people were injured. Witnesses say the blast was so powerful it blew the roof off the building. About an hour before the blast, a utility crew responded to a report of a gas leak and suggested that the restaurant close, which it did, but witnesses say the crew gave no sense of urgency. And carnival is facing a Class Action Lawsuit over the disaster aboard the triumph. A lawsuit alleges that the company knew or that it should have known that the boat could experience mechanical and or engine issues since it had in the past. It also said that conditions on the ship contributed to risk or injuries. Senator Patrick Leahy says it will take more time to win the release of American Contractor allen gross from cuba. Leahy met with raul castro to ask for his relief but felt relieved after the twoday visit. I wish he could be released. I think the points been made. Obviously its going to take more negotiations but the man is not a spy. He should go home. Is serving a 15year sentence for bringing banned communication equipment into cuba. And china is being accused of hacking into 20 industries worldwide. A crew from cnn tried to film a building at the center of the allegations in shanghai. You can see the chase there. Security officers when they realized where they were, they immediately gave chase. Well, after being chased down, a reporter had, in his words, cordial words with the officer when they asked for that video that they had taken. You could see those officers, they were really booking, trying to catch up. Were going to have a full report on what happened outside that building. Thats come canning up later in the situation room. Thanks very much. No one has died on a boeing dreamliner but weve heard plenty about its safety issues in recent weeks. Why arent more people talking about the safety of buses, especially Bus Companies with some spotty safety records . Ahead were going to do just that. Ive always had to keep my eye on her. But, i didnt always watch out for myself. With so much noise about health care. I tuned it all out. With unitedhealthcare, i get information that matters. My individual health profile. Not random statistics. They even reward me for addressing my health risks. So im doing fine. But shes still going to give me a heart attack. Were more than 78,000 people looking out for more than 70 million americans. Thats health in numbers. Unitedhealthcare. But with advair, im breathing better. So now i can be in the scene. Advair is clinically proven to help significantly improve lung function. Unlike most copd medications, advair contains both an antiinflammatory and a longacting bronchodilator working together to help improve your lung function all day. Advair wont replace fastacting inhalers for sudden symptoms and should not be used more than twice a day. People with copd taking advair may have a higher chance of pneumonia. Advair may increase your risk of osteoporosis and some eye problems. Tell your doctor if you have a heart condition or high Blood Pressure before taking advair. If youre still having difficulty breathing, ask your doctor if including advair could help improve your lung function. Get your first full prescription free and save on refills at advaircopd. Com. When safety issues slipped through the cracks is troubling for all of us. Weve seen the stories about the cruise ships, the airliners, but commercial buses dont get a lot of attention. Rene marsh is here and shes been investigating this part of the story. What are you finding out . Wolf, were finding out when it comes to these safety regulations, its not quite equal and some advocates say thats a big problem. December 30th, pendleton, oregon, a tour bus operated by a company with a history of safety violations slides off a mountain highway killing nine, injuring 39. February 3rd, san bernardino, california a transfer on 38 just north of bryant on a tour bus that overturned. A school bulls . A tour bus. A tour bus operated by another company all with a history of safety violations kareens down a mountains road. Eight dead, 32 injured. She says a bus is overturned, theres multiple injuries. In both cases, federal motor records show numerous violations before the wrecks. But the feds found justification to shut down the companies only after the fatal crashes. Some question whether enforcement is strict enough. Weve got to have regulations with teeth and the penalties have to be a deterrent. Larger buses can carry as many people as a regional jet. In recent years, theres only been one major plane crash in the United States. It went down near buffalo, new york, killing 50 people. Meantime, roughly 300 people die on board buses every year, according to the department of transportation. We would never see hours of Service Violations in aviation. Pilots will not bust their hours. But we see it routinely on the highways. The d. O. T. Says its launching a crackdown targeting highrisk motor Coach Companies like those involved in the crashes. Even representatives of the bus industry say its about time. The 53 people who get on a motor coach, their safety, their wellbeing is just as important as the 53 or 58 people flying on an airplane on a regional jet. They encourage travelers to look at its safer bus application to look at the safety records but that wouldnt have helped people in this oregon crash because there was Little Details as far as prior safety issues. Thanks very much. Ahead in the situation room, a pope hasnt quit in six centuries, so the vatican can be forgiving for scrambling to come up with some rules for its first expope in hundreds of years. I know what youre thinking. Transit fares as in the 37 billion transit fares we help collect each year. No . Oh, right. Youre thinking of the 1. 6 million daily Customer Care interactions xerox handles. Or the 900 Million Health insurance claims we process. So, its no surprise to you that companies depend on todays xerox for services that simplify how work gets done. Which is. Pretty much what weve always stood for. With xerox, youre ready for real business. The people of bp made a whcommitment to the gulf. ,r. And every day since, weve worked hard to keep it. Today, the beaches and gulf are open for everyone to enjoy. Weve shared what weve learned, so we can all produce energy more safely. Bps also committed to america. We support nearly twohundredfifty thousand jobs and invest more here than anywhere else. Were working to fuel america for generations to come. Our commitment has never been stronger. A last minute deal between the white house and congress, force spending cuts will hit federal workers in only nine days. Im joined by president obamas senior advicer dan pfeiffer from the white house. Thanks for coming in. Thank you, wolf. You saw the wall street journal today blaming the budget crisis on what he called the president s failed leadership and he said, mr. President , you agree that your sequester is bad policy. What spending are you willing to cut to replace it . So what you need 85 billion in spending cuts to avoid whats called these forced budget cuts or sequestration. Do you have 85 billion in mind . We do. We also have a trillion dollars in mind to go along with tax revenue that would raise money for deficit reduction by closing loopholes for the wealthy. We can solve this problem over the short term. The house and Senate Democrats have a proposal combined with asking the wealthy to pay a little more by closing loopholes. The question isnt whether we have a plan. We have a plan. The question is whether the republicans are willing to compromise so we can actually solve the problem. The plan that you have in mind to avoid the forced budget cuts, give me examples of where you would cut. Of the 85 billion, we have specific cuts on the foreign program, cuts in defense spending that we would do. The overall deficit reduction, we have very specific cuts, reforms to medicare, including asking higher income seniors to pay is that part of the 85 billion . Thats part of our the president s overall deficit Reduction Plan that would what im trying to do is find out on the 85 billion, to avoid whats called sequestration, the specifics. So how much would the farm the money that you want to eliminate for farm subsidies, how much would that bring in . Thats about 30 billion, wolf. The house and democrats 30 billion over one year or ten year . In ten years. The whole idea of the sequester is spending over the next decade. The formula that the house and Senate Democrats are using are nearly 95 senators voted for, including 40some republicans just two months ago to avoid this sequestration. Were following their proposal. Lets go through some of these specifics. I think its interesting. 3 billion in farm subsidies. You still have 82 billion left to go. Wolf, what you have to look at is the house and Senate Democrats plan. Its about 110 billion. Half from tax revenue, half have spending cuts. Its our belief, the president s belief that we should deal with the second says sister and overall deficit reduction in a balanced way. The republican plan is that all of the deficit reduction should be paid for by seniors and the middle class and wealthy should pay nothing more. Thats why the house and Senate Democrats have a plan that the president has endorsed, the buffett rule which would raise tens and billions of dollars in order to by ensuring that when we do tax reform, seniors are d, millionaires will not pay less. You saw what john boehner, the speaker, wrote in the wall street journal. The president has repeatedly called for more tax revenue but the American People dont favor spending cuts for higher taxes. They understand that the tax debate is now closed. He says, forget about additional tax increases between now and next friday. Thats close. One thing, if the speaker is believes that the American People dont think that the wealthy should pay more by closing loopholes, he he must be reading the same polls that have mitt romney winning ohio. Second, i also heard what the speaker said two month ago when he came to the president and said, we he could raise a trillion dollars by closing loopholes that benefit the wealthy. So we agreed with him then. We think its the right proposal to do. Im not sure exactly whats changed but the speaker was right when he said there are hundreds of billions of dollars in the tax code. Loopholes that benefit Corporate Jet owners, hedge fund managers. We can close those loopholes because we can make those tax reforms fair. Hes opened to comprehensive entitlement reform, social security, medicare, and medicaid. But thats a big ticket item that youre not going to resolve between now and next friday. You have an immediate issue you have to deal with. Otherwise, there are going to be all of these furloughs and pain that is going to come right away. Is the president ready to invite the speaker to come to the white house over the next few days and work out a deal . Well, the president is going to talk to the leaders in both parties and both houses to try to get this done. That can only happen if the republicans are willing to compromise. Only congress can turn off the sequester. The president thinks we should turn it off, house democrats, Senate Democrats. We cant do anything without the House Republicans doing something. And their view is, these cuts should happen. They have made a political decision that these automatic cuts should go into effect, which means that there are americans working today who will lose their jobs. Thats a choice they are making. Because nobody wants these automatic spending cuts. Thats actually wolf, thats actually not true. Speaker boehner has said that these are leverage. This is leverage for him to try to extract an ideological agenda that includes slashing medicare, slashing education. They have no realistic plan to avoid these cuts. They have said they wanted them to go into effect. Thats bad for the country but lets be very clear what that choice means they are making. That means some americans will lose their jobs, kids will get kicked out of head start. The president thinks thats the wrong choice for the country and with commonsense compromise we can attain it. It takes two to tango and the republicans are refusing to compromise. Why did the president come up with this deal to begin with . Wolf, this is all part of the debt ceiling negotiations in 2011, where the republicans said that we are going to force the country to default if we dont get what we want. And so the president working with congress came up with a proposal that tried to force congress to do balance deficit reduction. Congress is choosing not to do that because republicans are refusing for a very long time and consider tax revenue a part of that. Lets forget, the speaker says now this was the president s idea. After this was passed and the speaker voted for it and all of his lieutenants voted for it, he went to the floor of the house and crowed about how this was a deal where he he got 98 of what he wanted. Maybe the trillion dollar sequester was the 2 he didnt want but i find a lot of that hard to believe. They he should stop trying to cast blame here and actually try to help the American People by working with this president to come up with a balanced solution to deal with this secoquester a focus on job growth and Economic Growth in this country. You could come up with 85 billion very quickly if you decide to get out of the debt this year as opposed to next year. Is that at all on the table . No the the president talked in the state of the union about his plan to remove about 30,000 troops from afghanistan next year. Hes working with the military on how to end the war and whats in the best interest of the country. Because they are spending 58 billion in troops and all of these dire situations would go into effect. Wolf, the democrats have a pro boes sal and were willing to talk with republican if they are willing to compromise. Right now their approach is my way or the highway and guaranteeing that these cuts will go into effect. The farm subsidies, thats one area that youre willing to cut right away. Is there another example because farm subsidies . We can do cuts in defense spending. How much in defense spending this year do you want to cut as part of the 85 billion . The president has it represents about half of the spending side of the house and Senate Democrats proposal. Thats what the sequestration plan has. Would you do the same thing . No the problem is with the sequester is its a meat cleaver. These cuts go in and doesnt offer the pentagon and military the chance to make smart cuts in the best interests of this country. Secretary panetta talked about a Carrier Group that would not go to the gulf because of these cuts. We can cut defense spending. There are places that we can save money but we should do it in a smart way. The path that it would put us on is making choices that protect this country and secure the homeland in the best way, we dont want to do that. They do. One final question because were out of time. Boehner coming over to the white house over the next nine days, is that in the cards . Look, if they are willing to compromise, the president s door is always open. What doesnt make any sense for us is if they are going to take this my way or the highway approach, we are wasting time. If they actual leap want to find a solution to this, the president is here in the white house waiting for them to return from recess. But the president has to offer the invitation, right . The door is open and we will be talking to the speaker and everyone else in the coming days. Our hope is that they are willing to do the right thing for the American People. Nine days to go. Dan pfeiffer at the white house, you are going to be busy not just these nine days but the next four days as well. Thank you very much. Believe it or not, the u. S. Rocket industry is booming. An exclusive look inside the place where they make the latest generation of rockets. train horn vo wherever our trains go, the economy comes to life. Norfolk southern. One line, infinite possibilities. So if ydead battery,t tire, need a tow or lock your keys in the car, geicos emergency roadside assistance is there 24 7. Oh dear, i got a flat tire. Hmmm. Uh. 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Space shuttle launches are gone forever and nasa along with the rest of the federal Government Faces mandatory spending cuts. You may be surprised to find out that the rocket business is booming right here in the United States. You just have to know where to look. Here is cnns john zarrella. Reporter in all shapes and sizes in different stages of developments, its pounding and dipped and when this hightech tinker toy is put together, you get a rocket launch. Three, two, one, main engine start, zero, and liftoff. Reporter while the nations Space Shuttle program is over, the rocket business is, well, taking off. The number of Companies Working on rockets and spacecraft seems to grow daily. There is a bit of a feeding frenzy to reach the new frontier. I think well see some of these smaller players start to peter out as either their objectives dont line up with nasa or funding streams dry up or simply technical. United rocket launch there are 20 different delta rockets in the pipeline that will eventually carry shuttles into the spacecraft. They carry a nondescript 1,000 sheet of metal, down to 1100 pounds when the milling process is done. What youre looking at are segments of the second stage of at an las 5 rocket, stainless steel segments. How thick are they . They are less than the thickness of in dime. This is not new hightech rocketry. Its been around a while. A long while. And this thin wall stainless Steel Technology reporter thats this right here . This is the technology that put john glenn into orbit. Reporter whats changed, rocket manufacturing has improved. Amy oversees processing, a dream job. Not everybody can wake up and their job is to build, test, and launch rockets. Reporter but more people are lately, a sign of a booming industry. Ula has added 200 employees in the last few years. Just the wages bringing to the area but then the suppliers that they bring in and the number of jobs, its in the millions and millions of dollars. Reporter spinoffs are part of the job, too. Metal is coated with an anti corrosive material. Years back they needed to recoat areas. One formula after another was tried until on what was called the 40th water displacement test, they found something that worked. And thus was born to this day you use wd40 . Yes. Reporter thats wd40 . Look at that. You may never look at the business of rockets quite the same again. Now, nasa is going to use delta rocket for its first flight next year of the new spacecraft and that delta rocket, wolf, is being built right now in decatur and who would have ever thought that it would turn out to be wd40. Wolf . John zarrella has been our rocket man. Always has been, always will be. Jesse jackson jrs. Fall from grace. We have the details of how he spent his campaign cash. H were in san francisco. 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Then youre going to love this. Right now theyre only 14. 95 wowa grt deal just got a whole lot better. Hurry. 14. 95 wont last. Youre in the situation room. Happening now, his future once looked unbelievably bright. Now its almost certain to include prison time. A guilty plea today from former congressman Jesse Jackson jr. A popular restaurant disappears in a ball of flame. Well take you to the scene of the devastating explosion in kansas city. And masked gunmen rob and make off with 50 million worth of diamonds. What the thieves are up against. We want to welcome our viewers in the United States and around the world. Im wolf blitzer. Youre in the situation room. He was once a rising political star. Now the former democratic congressman Jesse Jackson jr. Has come crashing to earth. He pleaded guilty to misusing Campaign Funds. Afterwards, he was contrite. Im sorry i let everybody down. Jackson spent more than 43,000 on a rolex watch, 9500 on childrens furniture, and more than 10,000 on bruce lee memorabilia. Lisa sylvesters joining us now. Shes coming into the situation room. You were at the courthouse most of the day today, lisa. Tell us what happened. I can tell you, wolf, its all but certain that prison is going to be in Jesse Jacksons near future. It could be three years, four years, or five years. Both Jesse Jackson jr. And his wife sandy pleading guilty today in separate hearings. They both cried a little bit in front of a judge. A judge who will decide what happens next. Jesse jackson jr. Arrived at the federal courthouse without speaking to reporters. Later inside, Jesse Jackson told the judge, i used moneys that should have been for Campaign Purposes and at the key moment when the judge asked him, how do you plead, jackson looked back at his parents and looked back at the judge and said, guilty, your honor. They used Campaign Credit cards like it was their own personal spending account, paying for everything from home appliances, airplane tickets, restaurants, dry cleaning, fur coats, even a spa outing at a holistic retreat for a family member. In this video from a couple of years ago, the couple shows off their chicago home. Prosecutors say the couple bought lots of Household Goods and other items. More than 10,000 at best buy, 15 thou 15,000 from abt lebanon tronics and 9,000 for childrens furniture and 4,000 for a Michael Jackson and Eddie Van Halen guitar. All told, prosecutors say he misused about 750,000 in Campaign Money. Jesse jackson jr. Now a felon admitted to conspiracy to commit wire fraud, mail fraud, and false statements. He could face up to five years in prison but his lawyers in a plea agreement with prosecutors have set a sentence in the three to fouryear range would be more appropriate, citing his Health Issues. Those Health Issues are directly related to his present predicament. Thats not an excuse. Its just a fact. Jackson was treated for depression and bipolar disease. Hes served 17 years in congress. The son of the civil rights leader. If you look at the definition of characteristic of bipolar disorder, these were classic symptoms in that people are compulsive with spending. Jacksons wife sandy also appeared in court pleading guilty to separate charges of filing false tax returns. A hard fall for a family whose very name has been synonymous with justice and righteousness. Its political dynasty in chicago, husband and wife, congressman, just completely changes the history of their name in our city. Now, sentencing for Jesse Jackson jr. Is scheduled for june 28th. For sandy jackson, july 1st. She faces a possibility of three years in prison. They are going to push for no jail time for her particularly because they have two young children. On the way coming out of the courthouse he said, im sorry i let everyone down. He was very supportive. He was clearly there to support his son but we havent seen a statement as such. Within a few hours, i have a feeling by tomorrow well hear something from Jesse Jackson sr. What a fall from grace. Its sad. We have surveillance images of the shattering explosion, the flames that landed a popular landmark in kansas city, missouri. One body was pulled from the rubble today from the scene which was j. J. s a well known restaurant. The explosion is being blamed on natural gas. Ted rowlands is on the scene for us. You spoke today to the restaurants owner. Tell us how that went. Reporter it was very emotional, wolf. Not only the Restaurant Owner but the restaurant employees here are going through a very difficult time. This time last night, j. J. s was open, they were serving happy hour. An hour later, just after 6 00 local time here, it exploded with people inside. I really cant quite comprehend that. Reporter after 28 years, jimmys restaurant is reduced to rubble. Tp sent ten of his employees to the hospital and one of his waitresses, a 35yearold woman, megan cramer, is feared dead. She was a good employee. We all cared a lot about each other as a family. Reporter it could have been much worse. Some of the employees and patrons were told to evacuate minutes before the blast. The others, including cramer, were still inside. This shows the moment of the explosion. The building exploded. It did not just catch fire. It blew up. Thats why she couldnt get out. Reporter the cause of the blast is still under investigation. Neighbors say they started smelling gas more than an hour before the explosion. Smelled the strongest gas ive ever smelled. Reporter was it overcoming . Yeah, i could taste it. It was very strong. Reporter authorities were called. The Fire Department came out 45 minutes before the explosion. But instead of ordering an evacuation, they left after discussing it with an employee of Missouri Gas Energy who was already on scene. The gas company has no comment while they continue to investigate. We got a call around 5 15 in the evening. I hesitate to mention that because im not looking at my notes. So all of that is under investigation and will come out. Kansas city mayors sly james who stayed up through the night with his Fire Department says its too early to point fingers. Everybody wants to blame somebody. Everybody wants to know these details. But let me just assure you, thats not going to happen today. Reporter and wolf, i received an email from the gas company in response to a question i had as to whether or not an evacuation was ever ordered here and they said the ten minutes before the blast an evacuation was ordered by one of their employees at j. J. s restaurant. Wolf . Ted rowlands, thanks very much. Pretty sad story there in kansas city. For more coverage, go to cnn. Com. Theres always a chance of a latebreaking compromise but nine days from now automatic force spending cuts will sweep across the federal government totalling 85 billion. The cuts may cause serious misery for a lot of people. But how will these cuts be made . Cnns tom foreman is joining us with a closer look at how it will all fallout. What are you seeing there, tom . Wolf, one of the things puzzling about this is no one seems to really know in washington exactly how this will work. But were getting an idea that its not just because of the 10 cuts across all of these different agencies that the impact may be felt by a lot of people but, more importantly, the way the cuts will probably be administered. I say probably because we dont know how any Given Department would handle it. The federal bureau of dog grooming and the principle of how this would be done. 10 cuts here. Lets say they have 50 billion for salaries, 30 billion for supplies, 10 billion for conferences and 5 billion for administration and 5 billion for dog rescue. Lets say we cancel the conferences this year. Theres our 10 and nothing really suffers. Were able to take care of salaries and supplies and still rescue the dogs. Heres the problem, though. Under the rules of sequestration, they cannot do this. Everybody weve talked to has said this would be a line by line cut. Each program has to be cut within the department. So what you wind up with is 10 off everything, things that you might be willing to get rid of, you get rid of that. If you take this one out, you dont get any credit anywhere else. That, wolf, is why some people say these cuts are draconian and can affect a lot of programs that neither democrats or republicans want to affect. The rules will simply make it be affected. Bottom line, theres no way to avoid this type of across the board cutting . There sl a way. You were pushing the white house on this earlier. When you were talking to the white house, the way to avoid is t is for democrats and republicans to have discussions about what parts of all of these they are willing to cut now. They may be able to say theres some program out here that we can take 30 away from or 40 away from and protect the 10 somewhere else but they have to strike that deal and right now they are not striking that deal because republicans wont bend on the question of taxes and the white house will not bend to define precisely what they are willing to cut. Theyve got nine days. Lets see if they can get a deal. Lets see if there will be a meeting between the president and the speaker john boehner. Ronald reagan used to meet with tip oneil when he was speaker in the 80s. Lets see if that happens. Tom foreman, thank you. So are both sides playing these force spending cuts for political gain . Lets see what the president said yesterday. Fbi agents will be furloughed. Federal prosecutors will have to close cases and let criminals go. Air Traffic Controllers and Airport Security will see cutbacks, which means more delays in airports across the country. Lets bring in our chief political analyst gloria borger. First of all, the political calculation for the democrats in this blame. Blame, blame, blame. Blame the republicans. You heard the president right there. The white house calculation is that in the end, when the public figure out what all of these job furloughs are about, 8,000 at the pentagon alone, they are going to blame the pentagons for not willing to compromise. You heard dan pfeiffer talk about the word compromise. So they are saying, okay, you know what, we are going to take the case to the American People. Were going to point out exactly whats going to occur and we think they are going to side with us. Now, this isnt without risk. Take a look at this poll that was done recently, about whether federal spending cuts should take place on march 1. And you see there, not sure. 32 . Thats where the white house believes it has its opening but those people could also turn the other way and say, you know what, maybe some spending cuts would not be a bad idea. You know, the House Speaker, as weve been pointing out, wrote this tough piece in the wall street journal. The president is raging against the budget crisis he created. And then he says, what they might not realize is that it is a product of the president s own failed leadership. Thats john boehner in the wall street journal. But republicans have their own calculations right now as well. Again, blame game. Weve heard that in washington. And they are going to remind us at every opportunity they have, just like the speaker did an op ed, that it was the president s idea. That this sequester was the president s idea. Lets set aside the fact that 174 House Republicans also voted for it but they are going to point out that this was the president s idea and that the public, they say, wants spending cuts. They already believe theyve done the tax side of this issue and they believe that they can take this to the American Public and the public will be on their side. So, wolf, they are living in completely parallel universes. There right now is no overlap between these two sides. Yeah, because the republicans are say being, they already raised taxes on the deal in december to avoid the socalled fiscal cliff. Thats right. They are not going to raise taxes now. The president says theres only way to avert it, to raise taxes on wealthier americans and big corporations. When they realize the disruption that will occur in their lives, eventually, as you know, its not all going to happen on march 1, wolf. They say, when we take this to the president and they believe when the public starts focusing on disruption, that they will say, you know what, we dont want this. And the republicans are saying that the public is going to say, you know what, the president ought to compromise because they are not in a mood to raise taxes. They believe in smaller government. The question is, to me, whether people believe in smaller government, more in theory than in practice. And well have to see how this plays out. I know that some white house officials still believe even at this last minute because ive heard it from them that the Republican Leadership will blink on the issue of taxes and they will go ahead when all is said and done and raise some more taxes. They believe that but when you talk to republicans on the hill they say absolutely no way on this one. And boehner himself wrote, they understand the tax debate is now closed. Boehner is going to end up cutting a deal, i believe, on immigration but not on this issue. Get ready for all those furloughs. Thank you. Up next, a young syrian rebel who once fought for freedom now fighting for al qaeda and he says hes proud to be called a terrorist. And as if Superstorm Sandy didnt cause a misery in new york, it left behind a growing problem. Rats. We have an update. Come on, boy [ barks ] oh, heavenly day here we go. Chachacha dont you know that i love ya chachachachacha always thinking of ya all around the World Everybody singin along singin along fly me to the moon let me play among the stars let me see what spring [ birds chirping ] [ male announcer ] with the best lineup of vehicles ever, introducing the new chevrolet. Oh, heavenly day why just go from a to b when imagination can take you everywhere . All the clouds blew away chevrolet. Find new roads. Waiting for your wrinkle cream to work . Neutrogena® rapid wrinkle repair has the fastest retinol formula. To visibly reduce fine lines and wrinkles in just one week. Neutrogena®. To help protect your eye health as you age. Would you take it . Well, there is. [ male announcer ] its called ocuvite. A vitamin totally dedicated to your eyes, from the eye care experts at bausch lomb. As you age, eyes can lose vital nutrients. Ocuvite helps replenish key eye nutrients. Ocuvite has a unique formula not found in your multivitamin to help protect your eye health. Now thats a pill worth taking. [ male announcer ] ocuvite. Help protect your eye health. Oh, just diagramming this accident with my state farm pocket agent app. You can also get a quote and pay your premium with this thing. I thought state farm didnt have all those apps . Where did you hear that . The internet. And you believed it . Yeah. They cant put anything on the internet that isnt true. Where did you hear that . [ both ] the internet. Oh look. Here comes my date. I met him on the internet. Hes a french model. Uh, bonjour. [ male announcer ] state farm. More mobile than ever. Get to a better state. This is what its like. Paying full price for a hotel room. And this is what its like getting a highend hotel room for 45 off published prices. With travelocitys top secret hotels. Ooo, tingly. In syria, death raining down from the sky, dozens of people were kill canned today. This video is said to show the immediate aftermath of an air strike near damascus kus. This shows the downing of a Syrian Regime fighter. There is an ominous shift among them with radical islamists growing more powerful and popular. Ivan watson is in istanbul with a closer look. Reporter a lot can change in a year. We first met him when he was a 19yearold revolutionary who sang about freedom. Always dressed in the colors of the syrian rebel flag, he worked with a team of activists who called for democracy and human rights staging protests. A year later, he has fallen in with a very different crowd with a very different message. He wont talk to cnn now. Friends say hes a member of the most famous of the many islam mist rebel groups now fighting the Syrian Regime. His revolution is an example of a broader shift in syria. There is an increasing demilitarization and increased radicalization of the revolution. Reporter many demonstrators now wave what they call the black islamic flag of war and theres been friction between islam mists and protesters who still carry the original syrian rebel banner. Part of whats attracting syrians to groups like this is that they led rebels to highprofile victories on the battlefield, often with the help of foreign jihadi fighters. We black listed the front because of their links within eye rank responsible for the killings of thousands of iraqis, hundreds of americans. We know what al qaeda and iraq is still doing and we dont want it to start doing that in syria. Reporter but with 70,000 syrians now dead and little sign of american support for the opposition, even peaceful Syrian Opposition groups criticize the u. S. Move against misra. The u. S. Designation of misra as a terrorist organization perhaps makes the United States feel better but doesnt change things for syrians. Reporter they have set up a bus service and while distributing food and fuel to hungry freezing syrians. All of this perhaps contributed to why this young man appears to have joined the misra front. He and other supporters of this Sunni Muslim Group have a chilling message for the president s minority religious sect. Just wait, al low wit, the little boy since, we will come to slaughter you. And ivan watson is joining us now. How bad is this tension emerging between these prowestern rebels, if you will, and those with ties to al qaeda . Reporter well, some secular rebels will tell you in private that if and when they manage to overthrow the Syrian Regime that the next battle, they say, will be against the islamists, particularly in the north of the country. One of the most prominent of the activists in the Northern City of aleppo, a man who used to lead protests in aleppo against the government, he was detained by misra front fighters who floged him on his back and he posted this on facebook as proof. Just this week, another Group Setting up a court to institute some sort of justice in rebelcontrolled territories, they say that misra detained some of their lawyers. You have to keep in mind, what could also be driving people to join the misra front and other islam mist groups, sheer desperation. Were talking 70,000 People Killed in syria in under two years. Millions of people displaced and people just dont know where else to turn. If these groups are winning big victories, thats a big reason that is drawing them to somebody that they think could perhaps hasten an end to the syrian government. Ive heard it repeatedly from administration officials, this is one of the main reason why president obama rejected the u. S. Directly arming those rebels, because he feared that the arms might go to a good group right now, relatively speaking, but that could turn out to be an al qaeda front like misra the day after tomorrow. Hes reluctant to start pouring in some pretty sophisticated weaponry to these groups. You dont know where the weapons are going to wind up, was one of the reasons why he decided to reject the recommendation of arming the rebels to begin with. I know a very controversial decision that he made. Ivan watson reporting for us and doing an excellent job as he always does. Tens and he thousands of greeks poured into the streets today protesting wage cuts, tax hikes, and belttightening measures. Look at these pictures. Mass demonstrators threw rocks and bottles at police who threw tear gas in return. This came amid a nationwide strike that halted schools and traffic and left hospitals with reduced staff. Coming up, 50 million worth of diamonds stolen in a brazen heist. Could they be added to a Jewelry Store near you . Well be right back. And every day since, weve worked hard to keep it. Today, the beaches and gulf are open for everyone to enjoy. Weve shared what weve learned, so we can all produce energy more safely. Bps also committed to america. We support nearly twohundredfifty thousand jobs and invest more here than anywhere else. Were working to fuel america for generations to come. Our commitment has never been stronger. Preliminary autopsy results of mindy mccreadys cause of death. Lisa sylvester is monitoring that. What happened . Wolf, we thought this and now we know for sure. She died of a selfinflicted gunshot wound to the head. The Country Singer was found sunday at her home in the same spot her boyfriend died five weeks earlier. A friend says it was a perfect storm that hit her in the days before her death with a proposed court order which would have taken away her children. In another news, hackers reportedly are responsible for a string of attacks on apple, facebook and twitter. They appear to be looking for research, intellectual property or other information that can be sold in the underground market. No user data was compromised but twitter accounts may have been hit. Take a look at this. Dramatic pictures showing a massive 150foot chunk of roadway buckled. Weather is not believed to be the cause but rather some kind of geological event. And the white house has unveiled the official portrait of the first Lady Michelle obama. What do you think there . It was taken last week in the green room. The first lady, who just recently debuted is going to begin a National Tour celebrating the third anniversary of her signature lets move Initiative Inspiring children to grow up healthy. And i, for one, love the picture. I love everything about it. You like the bangs . I love the bangs, the backdrop, the pearls. Its a beautiful picture. Heres a picture i asked kate bolduan, lisa . You know, i havent had bangs since i was a kid. I try to imagine Lisa Sylvester with bangs. Michelle obama, the first lady, said she was doing it as some kind of a midlife crisis. So when i hit my midlife crisis maybe ill try for the bangs, too. Lisa, you have a long time. Youre very young. Thank you. Big name republicans in favor of samesex marriage. Thats coming up. Our strategy session is next. whats. That. On your head . Can curlers tomato basil, potato with bacon. Weve got a lot of empty cans. [ male announcer ] progresso. You gotta taste this soup. Weve got a lot of empty cans. All right thats a fifthfloor probleok. Not in my house ha ha ha ha ha ha no no no not today ha ha ha ha ha ha jimmy how happy are folks who save hundreds of dollars switching to geico . Happier than Dikembe Mutumbo blocking a shot. Get happy. Get geico. Fifteen minutes could save you fifteen percent or more. Its lots of things. All waking up. Connecting to the global phenomenon we call the internet of everything. Its going to be amazing. And exciting. And maybe, most remarkably, not that far away. Were going to wake the world up. And watch, with eyes wide, as it gets to work. Cisco. Tomorrow starts here. So i used my Citi Thankyou card to pick up some accessories. A new belt. Some nylons. And what girl wouldnt need new shoes . And with all the points ive been earning, i was able to get us a flight to our favorite climbing spot even on a holiday weekend. Things are definitely looking up. [ male announcer ] with no blackout dates, you can use your Citi Thankyou points to travel whenever you want. Visit citi. Com thankyoucards to apply. Constipated . Yeah. Mm. Some laxatives like dulcolax can cause cramps. But phillips caplets dont. They have magnesium. For effective relief of occasional constipation. Thanks. [ Phillips Lady ] live the regular life. Phillips. Lets get back to our top story. Were just getting new information. The former congressman Jesse Jackson jr. Pleading guilty to misusing Campaign Funds for personal use. Authorities are speaking out about the case. Lisa was at the courthouse all day today. Lisa, what did they say . What we are hearing a few minutes ago there was a press conference with the u. S. Attorneys office and we have some sound that we can play for you. But just to set this up, it was earlier today where Jesse Jackson jr. Walked into a federal court and pled guilty. He is accused of using some 750,000 in Campaign Money for personal use, buying all kinds of things, including Michael Jackson memorabilia, buying appliances for coats. It is a long list. In fact, the u. S. Attorneys office said it was some 30 100 transactions that he used, essentially charging things on a Campaign Credit card as well as using some checks. So lets take a listen to what he said because i think it puts it all into context. Lets listen to the u. S. Attorneys office. Those contributors were people of modest means, Senior Citizens on fixed income, auto workers, teachers, plumbers. They donated their hardearned money so that he could, through his Political Movement somehow better their lives. He betrayed their trust. He spent their money that was designed or intended to be used to further his elections on items of excess. So we are hearing some very harsh phrasing coming from the prosecutors in this case, essentially saying, look, he betrayed their trust. That there were people, there were citizens, these were plumbers, these were teachers who wanted to contribute to his Political Campaign because he believed in them. This is something that Jesse Jackson himself acknowledged as he walked out of the courtroom. He did say one thing, which is that he he is sorry that he let everybody down. Wolf . They certainly should be. Thanks very much for that, lisa. More in the next hour as well. I want to get the Quick Reaction from paul begala, democratic strategist, david frum, the former white house speechwriter. When you hear this kind of stuff, Jesse Jackson jr. Could wind up in jail for three years, four years, five years. What a fall from grace. Well, it is worth remembering that there have been a lost questions about Jesse Jackson sr. s financial fall. Jesse jackson sr. Is not an elected member of congress or gone to jail or been charged with anything. The way his old movement pushed money, was often very dubious. Its a story of history and hes turned some new leaves but they would approach local businesses, they would raise money hes never been charged with anything. Hes never been charged with any form of wrongdoing and its certainly not illegal to say ill protest your store or your business unless you in some way pay money to the causes that i support and people who are allies of mine. The point youre trying to make, i want to be precise, you think Jesse Jackson jr. Got into this kind of trouble because of his dad . No. When you say its a fall from grace, some of the reporting suggests that what is happening is we have a political dynasty that has somehow been betrayed in the second generation. This is a story more of continuity than discontinuity. I cant endorse that. I dont think the son should be visited on the father. I am struck at the power of the statement from the u. S. Attorney as someone who spent most of my life in campaign, its the enormous betrayal. Its a personal tragedy for that family and they have young children. Your heartbreaks and you pray for those kids. But its 750,000. Its an extraordinary misappropriation. And you see the list that went to the judge thats going to make this decision, how long he goes to jail, how long sandy his wife potentially could go to jail. They have two little kids. This is a story that is really, really wrenching in so many respects. Lets move on and talk about some other political issues. A new pro samesex ad coming out including high level republicans. Im going to play a clip from this commercial thats now out there. None of us dont want to be told that we cant mary the person we love. Thats why a growing majority of americans believe its time for guy marriage. If couples are committed, they ought to have the same sort of rights that everyone has. Live together, with the protection of law, it seems to me is the way we should be moving in this country. Freedom means freedom for emp. Our journey is not complete until our gay brothers and sisters are treated like anyone else under the law. Its time for marriage. Thats a pretty powerful commercial. What do you think . This issue is coming to a real crux. We have important decisions ahead about the defense of marriage act, whether thats regarded as constitutional or not and what we are seeing is a generational shift in america and generational shift inside the Republican Party led by people from people like dick cheney. We are living through a Real National change of mind and its a very powerful and sobering thing to see. A great democracy thinking together. Supreme court has two cases before it right now on this sensitive issue. They are going to hear oral arguments at the end of march. They are going to make a decision by the end of june and that could decide one way or the other which way the federal government is moving. First, the defense of marriage act signed by president clinton and im sorry to say i didnt think that was a good move a. Good law, or a constitutional law. That will be reviewed. That stipulated that marriage is between a man and a woman only. And that if a state recognizes it, that other states are not obligated to give full faith and credit to that act. I think its plainly wrong and unconstitutional. The other one could be even bigger. Proposition 8 in california was voted on by the citizens of california and denies equal rights to marry for gays. Its taken a dream team in the case against bush and ted olson the lawyer for that famous case have joined together. Stand in line for that argument. These are the two greatest my little inclination and its just an inclination that ad is designed to influence one, maybe two United StatesSupreme Court justices. They will be the deciding factor on this sensitive issue. Well see what happens, guys. Thanks very much. Thank you. Coming up, this woman admits she voted more than once in the president ial election. We have allegations of voter fraud hitting one of the most closely watched states in the United States. Ow ow [ male announcer ] your Favorite Foods fighting you . Fight back fast with tums. Calciumrich tums starts working so fast youll forget you had heartburn. Tum tum tum tum tums [ male announcer ] dont just reject convention. Drown it out. Introducing the allnew 2013 lexus ls f sport. An entirely new pursuit. Allegations of voter fraud hit one of the most critical states in the president ial election. This woman, just one of the voters in question, now admitting she voted more than once. Lets bring in our crime and justice correspondent joe johns. Whats going on here . Wolf, as far as we know, its not exactly an ep dick mcbut the Ohio Attorney general asked to look for signs of Voter Suppression and fraud in ohio and they definitely came up with something. Hamilton county is seen as one of the true bellwethers, the closely watched spots in the country. So when authorities there indicated they were either issuing subpoenas or referring the names of about 19 voters to prosecutors fored to vote for more than once, it got a lot of attention. One of those people is he will low wees who was a poll worker who admitted voting more than once. She allegedly voted absentee and signed the voting book at the polls. But she says she wasnt trying to break the law. Theres absolutely no intent on my part to commit fraud. Yes, i voted twice. She was afraid her absentee ballot would not be counted in time. Investigators say miss richardson filled out an absentee ballot for her granddaughter who voted in person as well. Three other absentee requests were made for m. Richardson and all three made for the same address in ohio. All three ballots were returned the same date, handwriting on all of the documents was said to be similar. Interesting anecdotes but in the big picture it would not have changed the outcome of the president ial election in ohio, says an and elects laws expert. What ive heard so far doesnt cause any reason to be concerned. The president ial election, the margin of victory was over 160,000 votes and from what i understand, there are two bad ballots affecting the count, if you will. There were roughly 20 or so instances of potential voter fraud that are subject to investigation. Most of the time Election Officials caught this problem before double votes got counted but there is a lot we dont know. Out of 19 people who allegedly tried to vote twice, nine of them got subpoenas because investigators couldnt get them on the phone to talk about it. Are there any explanations for this, how this could happen . Yes, there are potentially innocent eggs pxplanations. The county didnt take action because they thought they didnt put enough positive stage on their absentee ballots. Theyve got to tighten up those rules in ohio to make sure it doesnt happen again. They are already tightened up already. They need to tighten it up again. Amazing. Thats a pretty shocking, ive got to say. Thanks very much. When we come back, rats invading parts of new york in the wake of Superstorm Sandy. We have new information. Youre going to find out what is being done about the complaint. Thats next. No. No. No. Yes a website that works like a wedding registry. But for a car. First, you customize it. Then let people sponsor the cars parts as gifts. Dad sponsors the engine for your birthday. Grandma sponsors the rims for graduation. The car gets funded. Then you pick up your new dodge dart at the dealership. And all thats left to do is say thanks. Easy. Love. Thats why a growinge told majority of americans believe its time to allow marriage for gay and lesbian couples. When couples are committed they ought to have i think the same sort of rights that everyone has. Allowing them to live together with the protection of law, it seems to me is the way we should be moving in this country freedom means freedom for everyone. Our journey is not complete until our gay brothers and sisters are treated like anyone else under the law, its time for marriage. Just the latest horror story to emerge from the widespread sandy devastation, still crippling parts of new york. Rats invading parts of the city. Lets bring in our own mary snow. Shes in new york with details. Mary . Well, wolf, just looking at that picture there, you know its the last thing anyone wants to deal with, especially after sandy. Rats are by no means scarce in this city of 18 million plus people, but to hear exterminators tell it, more of the underground world moved aboveground after sandy, and theyre not moving. Night the descends on new york city and things can get pretty creepy. And after snowstorm sandy, even creepier. Terry ridgeo says the rat problem in her hardhit Lower Manhattan neighborhood exploded. Its crazy. You come home from work, you see a rat. It could be daylight, you see a rat. You walk your dogs past nighttime, you see rats frolicking like theyre playing, like theyre pets having fun. Its disgusting. Reporter when sandy flooded subways and tunnels, the theory is rats were literally flushed out, forced to relocate and theyre staying put. Traps to try and catch them dot streets in Lower Manhattan, where construction has only compounded the problem. Timothy wong says his Pest Control Company is constantly trying to stock up on supplies. We even have, believe it or not, for these really nice, fancy areas in manhattan, where they cant use really ugly, they have like rock base stations where it looks like a rock and you cant tell, but inside, theres a hole where rats can go in where you can put poison in there. Reporter wong says his company has gotten more than twice as many complaints about rats and mice compared to a year ago at this time. Thats not what the health Department Says its seeing. Saying that while large storms can flush out rats, they can also drown them. Im going to throw some poison up in the ceiling. Reporter growing numbers or not, m m exterminator jeff wood says he sees new york in a whole different light. It is three years of doing it, you kind of get youre always looking over your shoulder. Its been keeping us building. Peoples nightmare is really a good day for us. Certainly not a job for the feint of heart. One City Council Member says the problem is so bad, shes calling on more exterminators to help clean up. But the city says theyve significantly increased rat inspections in the last two years and it says its seen a decrease in complaints. Theyve got to do something. Yeah. Thank you, mary. About 50 million worth of diamonds on the loose after a brazen heist. Could they soon end up near a Jewelry Store in your neighborhood . Find out, next. R. Good. Now find the most hard core driver in america. That guy, put him in it. Whats this . [ male announcer ] tell him hes about to find out. Youre about to find out. [ male announcer ] test it. Highlight the european chassis, 6 speed manual, dual exhaust, wide stance, clean lines, have him floor it, spin it, punch it, drift it, put it through its paces, is he happy . Oh ya, hes happy [ male announcer ] and thats how you test your car for fun. Easy. Its lots of things. All waking up. Connecting to the global phenomenon we call the internet of everything. Its going to be amazing. And exciting. And maybe, most remarkably, not that far away. Were going to wake the world up. And watch, with eyes wide, as it gets to work. Cisco. Tomorrow starts here. I wish my patients could see what i see. 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Bob will retire when hes 153, which would be fine if bob were a vampire. But hes not. Hes an architect with two kids and a mortgage. Luckily, he found someone who gave him a fresh perspective on his portfolio. And with some planning and effort, hopefully bob can retire at a more appropriate age. Its not rocket science. Its just common sense. From td ameritrade. Then youre going to love this. Right now theyre only 14. 95 wowa grt deal just got a whole lot better. Hurry. 14. 95 wont last. 50 million worth of diam d diamonds now on the loose after a brazen heist at the brussels airport. What are the chances any of those pieces could end up in a necklace or in a ring like these . We sent cnn business correspondent, zane asher, to new york citys diamond district for answers. Dont move reporter straight from a hollywood movie. Masked gunman commandeering an Armored Vehicle during a botched heist. But in this reallife plot, things go precisely as planned. The thieves have already managed to steal the diamonds. Now they just have to sell them. You dont just get 50 million or more in diamonds and say, how are we going to get rid of this. Youve arranged beforehand how to do that. Reporter usually with the help of fences. Illegal wholesalers willing to buy stolen diamonds for less than theyre worth and selling them at a profit. Whoever thinks theyre buying Bargain Basement diamonds should be careful, because well be able to find them sooner or later. Reporter experts say these stolen diamonds might be sold for just 30 cent observe the dollar, possibly ending up in a foreign country where controls are nowhere near as strict. Youre talking in israel, india, countries that have very large diamond facilities. Reporter but the thieves will have to make sure the diamonds dont get traced. We may, in fact, try to conceal some piece of it for some period of time. They may not want to get rid of 50 million at once. It may be too difficult. There arent a whole lot of people who will have the means to come up with payment that quickly. Reporter theyll also be up against state of the art technology. Some polished diamonds have a unique fingerprint, allowing them to be matched to stolen diamonds in an international database. Its actually very simple. We just place the diamond, table down, on the optical glass, we center it, we close the door, and we run it. Reporter retailers are also strict about the diamonds they buy, demanding a gia grading report, which lists each stones unique characteristics, possibly helping identify stolen ones. So you will not accept any diamond from anybody who comes to sell to you diamonds without this report . Thats correct. It has to have a report, showing that its gone through the right institution. Reporter but retailers admit that even stolen diamonds can have certificates and thieves will often have diamonds recut to make them harder to trace. The people theyre going to sell to are going to be corrupt people. Theyre not going to be selling it in the open market to the normal buyer in due course. Reporter and as it is in every jeweler and diamond utters best interest if these stolen diamonds are recovered, because if too many stolen diamonds saturate the diamond, the price could fall and that could affect the industry as a whole. Thanks very much. Happening now, riveting courtroom details of the shooting that has an olympic star accused of murdering his girlfriend. Guards chase our cnn crew investigating chinese hackers. A gynecologist accused of secretly videotaping his patients. A professors bizarre lecture that included a strip show. And Facebooks Mark Zuckerberg talks to cnn about teaming with google for a multimillion dollar science prize. Im wolf blitzer with kate balduan. Youre in the situation room. Its one of the most closely watched court case in the world right now, and this is only the bail hearing for the South African athlete, Oscar Pistorius, charged with murdering his girlfriend. Much of todays hearing focused on the bathroom of pistorius home, where he shot Reeva Steenkamp through the door of the toilet room. Prosecutors say he shot her deliberately. Pistorius says he thought he was shooting at an intruder. Cnns robyn curnow was in the courtroom. Reporter well, it was a bit of a rollercoaster day, so much so, it felt like i was watching a television drama. Initially, when the prosecution laid out its case, they gave some quite damning evidence. Also, they added to the mix that they had found, allegedly, two boxes of testosterone and syringes in his house. By the time the defense came in after lunch, they bit by bit ripped apart the states evidence, it unraveled quite spectacularly at one stage, because there was quite an Interesting Exchange between Oscar Pistorius lawyers and the investigating officer. And he said, well, how do you know this is testosterone . Have you tested it yet . And he said, no, i just read the label on the box and he said, well, if youd gone to any pharmacy or any chemist, you would know that this is a herbal medicine. Thats the kind of interchange that was taking place. Also, the investigating officer really looking quite red faced by the end of his stint on the dock. He admitted that he didnt wear protective foot covers or shoe covers when he walked into the house, she contaminated the crime scene. And we also know that the defense say that they have this key witness that had heard shouting, arguing in the hour before the shooting. But when pressed further, it emerged, much to the shock, i mean, the court gasped, it had emerged that this witness actually lived about 300 or more meters, thats more than a thousand feet, away from Oscar Pistorius house. So really, various aspects of the states case started unraveling, and i think for anybody who supports oscar, they would have been quite pleased with that outcome. His family even issuing a statement, saying that they had found that they were satisfied with the bail hearing, particularly, i must say, and this is the clincher, wolf, the investigating officer said that he actually couldnt find any inconsistencies with Oscar Pistorius version of events. Yeah, thats obviously good news for oscar over there. Did you see a difference in his demeanor today . Yesterday, he was sobbing, he was breaking down. What about today . Reporter yeah, absolutely. You know, we talked about it. He was physically sort of bent over yesterday. And you know, physically, he seemed to sit straighter today. And you know, for me, that told a lot. That he seemed to be dealing with the information that was coming out of the court a little bit better, obviously, because his defense team were really hammering holes into the states case. Just let me give you a sense of what his family is saying. His uncle has been talking to the press. Take a listen to this. Hes in extreme shock and so east grieving and hes and i dont expect him to get over it, even soon. So hes hes still in an emotionally tough time. Reporter okay. And of course, all the focus on the drama in the courtroom today, but many South Africans say, you know, as Oscar Pistorius spends his seventh night in jail, just remember, Reeva Steenkamps family, you know, their seventh night of realizing, trying to come to deal with the fact that shes not around anymore, that she wont be here. So, you know, its still a very emotional day, but very much a focus on the court proceeding. To better understand the legal ins and outs of what were seeing play out in South African, joining me now is dr. James grant. You specialize in criminal law there, dr. Grant. So thanks so much for joining me. I want to ask you just a couple questions. Were seeing a lot of detail playing out in the courtroom. We are just in the bail hearing phase. And i think a lot of our viewers here, especially in the United States, are surprised were hearing so much detail. Why is that . Correct. One of the issues that an accused person would want to address at the bail hearing is the strength of the states case, and argue, in fact, that the state doesnt have much of a case to meet, in any event. And thats why youre hearing so much detail at this point. And criminal trials in south africa, they do not have juries. Its going to come down to this, its up to the judge. We are in the bail hearing phase, from what you have seen and heard, do you expect Oscar Pistorius to get bail, or do you expect him to spend a lot more time behind bars . Correct. We dont have juries in south africa. They were abolished, probably, i think in the 50s or 60s. And, there were abolished precisely to avoid racial discrimination, precisely because of the history of apartheid in south africa. Do i believe that oscar will get bail is the bottom line question. My sense is, at this point, he possibly will. Im hesitant to say he probably will, but unfortunately, i havent been privy to all of the evidence thats being presented at the trial. Ultimately, though, what it comes down to is, essentially two factors. Is he going to present himself for trial if he is released on bail . And secondly, if he is released, will he interfere with witnesses or otherwise with the states case . So far, im not convinced that theres good evidence that he would interfere with the states case. Its a tough call on whether you could or one should expect him to flee the country. One other thing that has really stuck out is that they say that oscar mipistorius, the first person that he called after this all happened was someone who managed he has estate, someone who work eed on the property. What does that tell you . I should just point out that we dont have 911 in south africa, so its not the its not on everybodys speed dial. Whereas it is possible that one might have ones on ones speed dial, the manager of the estate where you live. I say that as a possibility. However, it is, of course, questionable, why, if on his own version, he had just discovered that he had shot his girlfriend, that he didnt phone what is South African the South African equivalent of 911, which is either the police who would have then immediately put him through to ambulance services, or alternatively dialed a Directory Service to put him through to a medical assistance. So fair questions being asked there. All right. Well be watching, all along the way. Thats for sure. Dr. James grant, thanks so much for your time. My pleasure. Were only nine days away from 85 billion in forced budget cuts and the white house and the republicans in congress, theyre trading blame instead of trading ideas to avoid the drastic spending reductions that will impact almost every american. Our National Political correspondent, jim acosta, went to the white house to press for some answers today. Jim, what did you hear . Reporter wolf and kate, the white house basically said its up to the congress to act. So, forin other words, the whit house and the Congress Moved one step closer, one day closer to those automatic budget cuts that start going into effect at the end of next weekend. And as weve been saying throughout many of these manufactured crises, here we go again. The white house is sounding the alarm. Poor children will be tossed out of classrooms, Health Services will be slashed, Border Security will be compromised, and the economy will take a hit if forced budget cuts begin to happen on march 1st. The Obama Administration says republicans will be to blame. The choice that republicans are making is, throw these people out of work in order to protect these special tax breaks, for Corporate Jet owners and oil and gas companies. It makes no sense. But when pressed on whether the president has his own plan to stop the cuts, White House Press secretary jay carney pointed to the grand bargain mr. Obama failed to reach with House Speaker john boehner two years ago. When you ask, wheres the president plan, its on whitehouse. Gov. Its in the proposals that he submitted to the speaker of the house, that the speaker walked away from here, that everyone here represented, or that most people here stood to be the budget term thats the deal and where does the president take the lead first of all, congress has to act. Reporter less than two months since the fiscal cliff that resulted in tax increases on wealthier americans, budget brinkmanship is back. In an oped in the wall street journal, boehner notes the idea for the automatic cuts originated in the white house, adding, mr. President , we agree that your sequester is bad policy. What spending are you willing to cut to replace it . The white house fires back, pointing out boehner seemed satisfied when it was all set in potion two years ago, as part of the debt ceiling deal of 2011. When you look at this final agreement that we came to with the white house, i got 98 of what i wanted. Im pretty happy. Reporter the gop responded by emailing out an interview, featuring the chairperson of the Senate Finance committee, max baucus, saying the president shares some of the blame as well. The president is part of this reporter and as max baucus was about to say during that interview, before that piece petered out there at the end there, max baucus told an affiliate in montana that the president shares some blame for the sequester, so the Republican Party was emailing that out to reporters earlier today. But when pressed on this issue, wolf and kate, the white house has basically said that the congress should adopt what the Senate Democrats proposed last week, and that is basically a package that includes a lot of spending cut, but also some tax increases. That is something that the republicans have set up on capitol hill is a nonstarter and i asked a top gop aide earlier this afternoon whether or not theres been any new outreach from the white house, some kind of outreach to prevent this sequester from taking effect, and that top aide told me, wolf, theres been no old outreach, no new outreach, quote, no anything. So were still heading towards the end of next week when these sequester cuts take effect, wolf. Nine days to go. Jim acosta at the white house, thank you. So it looks like former democratic congressman Jesse Jackson jr. Will have to do prison time. Today both jackson and his wife pleaded guilty to misusing 750,000 in Campaign Funds, spending the money on things like appliances, fur coats, even a pair of Michael Jacksons hats. Hell be looking at three to five years in prison when hes sentenced in june. And take a look at this. Its the moment a natural gas explosion ripped apart j. J. s restaurant in kansas city. Officials Just Announced the construction subcontractor breached a gas line with an underground boring machine, leading to the explosion. The restaurant had been closed because of the odor of gas. At least one person is dead and six others still hospitalized. Three are now described as being in critical condition. And its a rodeo week in tucson, arizona, but in addition to the horses and cattle and cactus, there are snowmen in tucson today. A winter storm moving through the Desert Southwest is expected to create big problems as it moves east. Forecasters are predicting heavy snow in the central plains, freezing rain in kansas and missouri, and dangerous thunderstorms in the south. Well be watching all of that head our way. We certainly will. And in a rare interview today, the facebook founder Mark Zuckerberg talked with cnns ali velshi about a big award the nations tech giants are giving out for medical research. Facebook, google, apple, and other firms set up whats being called the breakthrough prize in life sciences. How does this fit into a Facebook World in five years or ten years, when this thing is a really big deal . Oh, it doesnt. There are things that i focused on facebook, because i think its a really good thing for the world. I really believe in our mission of helping people connect and making the world more open and equitied welcome but there are lots of things that i think would be awesome to see exist in the world that facebook isnt the right vehicle to work on those things through. And its awesome to be able to work with a lot of folks who are really smart and have been successful in other areas and draw in their experience to do things like this as well. Are you, while were here live on cnn, any announcements you want to make about facebook . No. Well, i guess that the breakthrough awards are sort of like the nobel prize, but it pays twice as much. The first recipients are 11 Health Researchers who will be getting, get this, 3 million each. It shows if you work hard, sometimes you get 3 million. Youve got a good idea to come up with that to win that prize . Yeah. I dont think so. Chinese hackers allegedly targeting u. S. Companies from a complex in shanghai and look what happened when we, cnn, went to investigate. We have details of what we found. Keep driving. Drive away. Drive away. Drive away. The recipes not the recipe. Ohhh. [ female announcer ]. Without swanson. The broth cooks trust most when making soup. Mmmm [ female announcer ] the secret is swanson. Stop stop stop come back here humans we are beautifully imperfect creatures living in an imperfect world. Thats why Liberty Mutual insurance has your back with great ideas like our optional better car replacement. If your car is totaled, we give you the money to buy one a model year newer. Call. And ask one of our Insurance Experts about it today. 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The most common side effect is low blood sugar, which may cause symptoms such as sweating shakiness, confusion, and headache. Severe low blood sugar can be serious and lifethreatening. Ask your Health Care Provider about alcohol use, operating machinery, or driving. Other possible side effects include injection site reactions and low potassium in your blood. Tell your Health Care Provider about all medicines you take and all of your medical conditions. Get medical help right away if you experience serious allergic reactions such as body rash, trouble with breathing, fast heartbeat, or sweating. Flexpen® is insulin delivery my way. Covered by most insurance plans, including medicare. Find your copay cost at myflexpen. Com. Ask your Health Care Provider about novolog® flexpen today you may have heard about the massive hacking operation targeting Companies Like cocacola and American Oil Pipelines and power grids. The hack was traced back to a building in a military complex in china. We sent Cnns David Mckenzie to the shanghai building to check it out and he was chased. Watch this. Reporter driving in the northern part of shanghai. This is the hub of lowtech industry, but its also allegedly hightech hub of corporate, and potentially government espionage. The allegations come from a group called mandiant, from the u. S. They say that there are tens if not hundreds of chinese hackers working in conjunction with the Chinese Government to hack into mostly u. S. Companies and steal data and corporate secrets. Mandiant says after years of investigations, they pinpointed the hacking to this group of buildings. They said that the hackers would go in to an institution, through backdoor means, and spend potentially years there, stealing secrets. Some of these industries were National Security industries, like aerospace, hightech, and i. T. Its clear that this installation of buildings is closely watched by the Peoples Liberation army, and the allegation is that theyre working in conjunction with civilian hackers. As we got closer to take a look, we got in trouble. Keep driving. Drive away, drive away. Drive away. Reporter weve had to move out of sight of that facility. Now, the question then, was that a response because its a military installation, or is there something more here . Is this a secret center of chinese bloggers working for the Chinese Government and attacking u. S. Institutions. Thats certainly what mandiant is saying, but the Chinese Government says thats not the case. They say this is a base leless accusation, and quote, irresponsible. Chinese say that 14 Million Computers are hacked every year here in china, and they blame the u. S. The question is, is this just the next salvo in a cyberwar . David mckenzie, cnn, shanghai. Lets get some more with the head of the company that uncovered all of this, kevin mandia is the ceo of mandiant. Hes joining us here in the situation room. Kevin, thanks once again for coming in. Thank you. All right, you discovered this building in shanghai, you put it in your report. Are you surprised by what we just saw from our David Mckenzie . Ive got to admit, im surprised they almost caught the car, i think that was pretty impressive. But i think that bolsters and confirms that report. We spent seven years researching this group. All the geeky evidence led us right to shanghai to this one place, and in open source collections about this unit and the buildings that it used led us to the exact same location. Theres pretty much no doubt in our minds, this is a governmentrun facility for hacking. Now, theyre clearly upset by your report. They dont like the fact that that building has been pinpointed. As soon as i heard about all of this, i said to myself, teahese guys are pretty sophisticated. How worried you that theyre going to rye try to target your company, mandiant, and hack into your computers . I think thats almost inevitable. We know theyve tried to break into mandiant before. Theres an example where they impersonated me, impersonated my email address and sent it to two mandiant employees, trying to break in. Im pretty sure there will be some repercussions in cyberspace from mandiant. What do you do . We have as many precautions as we have, but they exploit human vulnerability and human weakness and we have over 300 employees. It only takes one of them into being foiled or fooled into doing something just hit a link and it goes in and could smash your whole thing. Just today, the Obama Administration rolled out their trade secret theft strategy, thats what theyre calling it. Time going to read you some of the priorities they laid out in this. It says they want to convey concerns to countries with high levels of incidence. This is relating to exactly what youve uncover. They also say, press governments on protection and enforcement, give private sector warnings and threat assessments, increase Public Awareness of threats and risks. This comes just a day after your report is put out. I mean, seven years after all the work youve done. So what you see here from the Obama Administration, is that good news. Does that change anything, in your view . Theres a couple things that came out of this. When you respond to this many intrusions, see all the theft of intellectual property that weve witnessed, you recognize theres Technical Solutions that weve got to pursue, but theres never going to be the holy grail, where weve got the whole field covered. So you need diplomatic things done as well. And thats one of the reasons why mandiant released its port, we felt the tolerance in the private sector, that its just shrinking. People are sick and frustrated with how much ip weve lost to chinese hackers. So we felt it was just a natural timing. Lets get this report out, lets up the ante, and i think theres a real challenge on the diplomacy side of things, but one thing that struck me is that they said they would increase our diplomatic engagement. I think thats automatically good. Without diplomacy, technology alone is not going to solve this problem. So good news, in your view, what you heard from the Administration Today . A first step . Certainly top of mind, its good. Kevin mandia, thanks so much for coming in again. Good luck not getting hacked. Thanks a lot. Thats true. Still ahead, to hear president obama tell it, the sky will fall come march 1st when 85 billion in forced spending cuts kick in. Is the white house hyping the impact . Well find out. [ laughing ] [ barking ] come on, boy [ barks ] oh, heavenly day here we go. Chachacha dont you know that i love ya chachachachacha always thinking of ya all around the World Everybody singin along singin along fly me to the moon let me play among the stars let me see what spring [ birds chirping ] [ male announcer ] with the best lineup of vehicles ever, introducing the new chevrolet. Oh, heavenly day why just go from a to b when imagination can take you everywhere . All the clouds blew away chevrolet. Find new roads. Unless theres a lastminute deal between white house and congress, forced spending cuts will hit federal workers in only nine days. Im joined now by president obamas senior adviser, dan pfeiffer, joining us from the white house. Dan, thanks very much for coming in. Thank you, wolf. You saw the article the House Speaker wrote in the wall street journal, the oped page, today, blaming this budget crisis on what he called the president s failed leadership. But he posed this question, ill put it up on the screen. He said, mr. President , we agree that your sequester is bad policy. What spending are you willing to cut to replace it . So what you need 85 billion in spending cuts to avoid whats called these forced budget cuts or sequestration. Do you have 85 billion in mind . We do. We have 85 billion in mind, we also have 1 trillion in mind to go along with tax revenue that would raise money for deficit reduction by closing loopholes for the wealthy. So we can solve this problem over the shortterm, the house and Senate Democrats have a proposal that has money from defense cuts, many from cuts in farm payments, combined with asking the wealthy to pay a little bit more, by closing loopholes. So we can do all of this. The question isnt whether we have a plan. We have a plan. The question is whether republicans are willing to compromise, so we can actually solve the problem. Of the 85 billion, the plan you have in mind to afford the forced budget cuts, give me examples of where you would cut. Well, we have the 85 billion, we have specific cuts and savings on the foreign program. There are cuts in defense spending that we would do. Overall, the overall deficit reduction, we have very specific cuts, reforms to medicare, including asking higher income seniors to pay a little bit more is that part of the 85 billion . No, thats part of our the president s overall deficit Reduction Plan that would but what im trying to do is find out, on the 85 billion, to avoid whats called sequestration, the specifics. So how much would the farm, the money you want to eliminate for farm subsidies, how much would that bring in . Thats about 30 billion, i believe, wolf. The house and Senate Democrats have a specific plan 30 billion this year or over ten years . Over ten years. Im talking about this year. How much well, the plan is 3 billion this year, but the whole idea of the sequester is to deal with the spending over the next decade. So the formula that the house and Senate Democrats are using is the same one that 85, nearly 90 republican senator or senators voted for, including 40some republicans, just two months ago to delay the sequestration so were following their proposal. So lets go through some of these specifics. Because i think its interesting. 3 billion in farm subsidies this year. Youve still got, what, 82 billion left to go. Where does that how about your defense spending this year . Well, wolf, wolf, wolf, what you have to look at is the house and Senate Democrats plan. And it includes, its about 110 billion, half from tax revenue, half from spending cuts. Its our belief, the president s belief and the belief of Congressional Democrats that we should deal with the sequester and overall deficit reduction in a balanced way. The republican plan is that all of the deficit reduction should come from, should be paid for by seniors in the middle class and the wealthy should pay nothing more. You saw what john boehner, the speaker wrote in the wall street journal. The president has repeatedly called for even more tax revenue, but the American People dont support trading spending cuts for higher taxes. They understand that the tax debate is now closed. So he says, forget about additional tax increases, between now and next friday. Thats closed for now. Well, i would say two things. One, if the speaker believes that the American People dont think that the wealthy should pay more by closing loopholes, he must be reading the same poles that have mitt romney winning ohio. Second, i saw what the speaker wrote today. I also heard what the speaker wrote two months ago, when he came in and said, we could raise 1 trillion to reduce our deficit, by closing loopholes that benefit the wealthy. So, we agreed with him then. We think thats the right proposal to do. Dan pfeiffer, speaking with me from the white house. Hes now the senior adviser. He was the communications director, speaking is with me from the white house. Just some perspective on the 85 billion they want to cut, these forced cuts, you know, the u. S. Is spending in afghanistan this year . You know, because i told you earlier. Just about that. 88 billion. So if the u. S. Were to withdraw this year, all of its troops, as opposed to next year, 88 billion some good, tough questions for him. It just does appear that these two sides are not any closer to reaching a deal right now. Especially when it comes to taxes. Exactly. Thats the key issue. Fight continues. Still ahead, making waves in t senate, speaking of congress, with no apologies. The tea party sees a hero in freshman senator ted cruz, but even some fellow republicans say, hes going a bit too far. He talks to cnn, next. Ve been missing on bing. Lets bing it on. [fight bell ding, ding] how many here are google users . What if i was to tell you that you would actually like bing way more than google when it came to the results . Prove it. Lets look up some taco places. I like the left side. Yeah . Okay, do we need to find out what the waves are like down at the beach . What side do you like better . I like the results on the right. Im gonna go with the one on the left. Oh bing won people prefer bing over google for the webs top searches. Dont believe it . Go to bingiton. Com and see what youre missing. And every day since, two years ago, the people of bp made a commitment to the gulf. Weve worked hard to keep it. Bp has paid over twentythree billion dollars to help people and businesses who were affected, and to cover cleanup costs. Today, the beaches and gulf are open for everyone to enjoy and many areas are reporting their best tourism seasons in years. Weve shared what weve learned with governments and across the industry so we can all produce energy more safely. I want you to know, theres another commitment bp takes just as seriously our commitment to america. Bp supports nearly twohundredfifty thousand jobs in communities across the country. We hired three thousand people just last year. Bp invests more in america than in any other country. In fact, over the last five years, no other Energy Company has invested more in the us than bp. Were working to fuel america for generations to come. Today, our commitment to the gulf, and to america, has never been stronger. Lookin good, flo feelin good feelin real good [ engine revs ] boat protection people love. Now, thats progressive. Call or click today. If we lose our liberty here, where do we go . It aint rocket science. What do we need to do . Stop spending money and to explicitly agree with the characterization of the United States as the worlds bully, i would suggest is not the conduct one would expect of a secretary of defense. To many of his colleagues, hes the brash new kid on the block, trampling the senates unwritten rules of civility and respect. But to his tea party supporters, ted cruz is a true believer, and shaking things up as part of why they sent him to washington. Our chief congressional correspondent, dana bash, is here in the situation room. She caught up with this brandnew republican senator back in texas, just back from texas. How did it go . Very interesting. You know that 2012 was a really bad Election Year for republicans. And ted cruz is one of only three new Republican Senate faces and hes already making sure hes a powerful voice of the gop. Reporter it had the look and feel of a campaign event. Except freshman gop senator ted cruz isnt up for reelection for six years. Great job with hagel. Thank you. Reporter these texans are applauding their senators head. Turning performance after only one month in office. Mr. Cruz, no. Reporter joining only two others to vote against john kerry for secretary of state, aggressively defending gun rights, and trying to take down defense secretary nominee chuck hagel. Have you been paid directly by a Foreign Government . Ive covered the senate for a long time. It is unusual for a freshman to be this outspoken on a highprofile issue. At the end of the day, i was elected to represent 26 million texans and to speak the truth. You know, i think a lot of americans are tired of politicians in washington in both parties who play games. Reporter the 42yearold cuban american, the first hispanic senator from texas, studied freemarket principles and memorized the constitution as a teenager, thanks to his father, a cuban refugee. After princeton and harvard law, cruz became solicitor general of texas, arguing for states right and tlinlgs freedom beforeligioe u. S. Supreme court. Tea Party Activists bucked the establishment to help elect cruz and now see their hard work paying off. Hes the total package. Hes brilliant, hes a great messenger for ideas, hes a true believer, and hes a guy you never have to wonder about how hes going to vote. Conservatives here in texas who fueled cruzs come from behind tea party win may be ecstatic hes been so aggressive, so fast, but for some senior senators, not so much. One of the Guiding Principles for the senate, for a freshman senator, is come in and be a workhorse, not a showhorse. You dont seem to be following that . The attention that has focused on me, in my opinion, is actually primarily being driven by an effort to distract from merits of the hagel nomination. Reporter cruz angered senators in both parties, demanding to know, without evidence, if hagel accepted money for speeches from Foreign Countries that oppose u. S. Interests. If that 200,000 that he deposited in his bank account came directly from saudi arabia, came directly from north korea reporter that got him a smackdown from republican john mccain. No one on this committee at any time should impugn his character or his integrity. Reporter from democrats, suggestions of mccarthyism. It was reminiscent of some bad times. I do find it ironic that in the course of attacking me and using a label like mccarthyite, they also chide me for not respecting comedy. Reporter its clear cruz did not run for senate to make friends. I find it amusing that those in washington are puzzled when someone actually does what they said they would do. Reporter and one of cruzs Senate Republican colleagues i spoke to said that even in a place of healthy egos, cruz stands out for his ego. And a tea Party Activist, who was a supporter, also says that perhaps he could have a little dose, a small dose of humor and it could go a long way. Was wolf, it was really clear in speaking to him and watching him, he is relishing in the criticism, especially from what he and others call the establishment. Yeah, hes got a huge following. Not only in texas, was outside of texas as well. Absolutely. Thanks for going out and and thanks for doing the report. Good work from dana out in texas. Always good work from dana. And youll remember that senator cruz joined us here in the situation room on his first day in the senate and hopefully well have him back again soon. Hes invited. Hes always invited. Still ahead here in the situation room, a College Lecture unlike any other. You can see the bizarre video. What you dont see is the professor stripping. Details of one class students will clearly never forget. [ slap ] [ male announcer ] your Favorite Foods fighting you . Fight back fast with tums. Calciumrich tums starts working so fast youll forget you had heartburn. Tum tum tum tum tums its lots of things. All waking up. Connecting to the global phenomenon we call the internet of everything. Its going to be amazing. And exciting. And maybe, most remarkably, not that far away. Were going to wake the world up. 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And now their professor is the one facing some pretty big questions. Cnn National CorrespondentJason Carroll had the fortunate opportunity to cover this story today and the bizarre Video Connected to it. So jason, what is going on . Well, i think a lot of parents are asking that very same question now. The professor in question was basically trying to get the students attention. He did that, kate. But he also got the attention of columbia administrators as some in the university and outside of it, for that matter, are questioning if the professor went just a little bit too far. Reporter to say it was not the standard lesson in Quantum Mechanics would be an understatement. He didnt really need to go that far. It was unique. The behavior and interactions of energy and matter did not matter, it seems, as much as the behavior of professor emlem hughes and how he interacted with his students during his lecture monday. Hughes stripped to his underwear while eating a banana and did not stop there. He then changed into a ninja costume. What is happening . A student capturing it on video, as toughed animals are impaled, images of 9 11 and Osama Bin Laden flashed on a giant video screen. Freshman Sarah Thompson and katherine nebbit were there. Kind of bizarre, but, like, he has the right to do it, i think. Reporter well, clearly, he may have the right to do it, but do you think what he did was the right thing to do . Um, i think that everybodys going to have a different opinion on that and i think i mean, its a form of expression. I think this might have been a first in his teaching career, but, if he wants to apologize, i guess he could. I dont think he should be fired or reprimanded, though. Reporter professor hughes did not respond to requests for an interview. As for explanation, he told students at his lecture the following. In order to learn Quantum Mechanics, you have to strip to your raw, erase all the garbage from your brain and start over again. Quantum mechanics, nothing you have learned in your life up to now will in any way help you prepare you for this. Reporter unorthodox teaching methods not new. A teacher suspended for showing a movie about pornography. Another at northwestern landed in hot water after a naked woman appeared as part of a class demonstration. And a South Carolina english teacher could be terminated for stomping on an American Flag during a lesson. Experts in education say sometimes unconventional methods are needed to motivate learning. Even though youre a master of the material, being able to present that in an engaging and a dynamic way is part of the challenge of being an effective and a good college instructor. Reporter hughes fate at columbia, unknown. The university released a statement which reads, in part, columbiass faculty handbook states that in conducting their classes, faculty should promote an atmosphere of mutual tolerance, respect, and civility and should confine their classes to the subject matter covered by their courses. Well, the University Also goes on to say that while one must exercise caution in judging excerpts from a lecture or short presentations from an entire course outside of their full context, the appropriate academic administrators are currently reviewing the facts of this particular presentation in Quantum Mechanics. Well just have to wait and see, kate, what happens to old professor hughes. I have to tell you, from talking to all the students there, he is well respected, well liked, and this was completely out of character. Clearly they like him and clearly they will not forget that class anytime soon, jason. Thats for sure. Thanks so much. You know, i guess sometimes you got to get their attention. It is Quantum Mechanics. Did you study Quantum Mechanics how did you know, that was clearly my major. I do applaud him for thinking outside the box. Okay. Just ahead, we have a special situation room report. Im brian todd in baltimore. There are shocking new allegations against an ob gyn doctor who worked at this hospital in baltimore. Did he record his patients in the examining room without their knowledge . Ill that story coming up. Axiron is not for use in women or anyone younger than 18. Axiron can transfer to others through direct contact. Women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. Report these signs and symptoms to your doctor if they occur. Tell your doctor about all medical conditions and medications. Do not use if you have prostate or breast cancer. 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My friends are all around me my friends, they do surround me i hope this never ends and well be the best of friends [ male announcer ] introducing the reimagined 2013 chevrolet traverse. All set . All set. With spacious seating for up to eight. Imagine that. Chevrolet. Find new roads. Through sunday, save up to 500 on beautyrest and posturepedic. E savings go on at sleep train. Get a sealy queen set for just 399. Even get 3 years interestfree financing on tempurpedic. Plus, free delivery, setup, and removal of your old set. Keep more president s in your wallet. Sleep trains president s day sale ends sunday. Superior service, best selection, lowest price, guaranteed. Sleep train your ticket to a better nights sleep shocking allegations that a doctor may have secretly videotaped his patients with hidden cameras. Our brian todd has been digging into this and hes live for us now in baltimore this evening. Brian, what are you learning . What a troubling story. Reporter kate, wolf, Baltimore Police tell us about 300 of dr. Nikita levees patients have contacted them to give information on this case. The police tell us they are now coming through an enormous amount of evidence. For about 25 years, he worked as an ob gyn at this medical center, affiliated with Johns Hopkins hospital in baltimore. Now Johns Hopkins and Baltimore Police say dr. Nikita levee illegally photographed his patients and possibly others without their knowledge. One of the cameras that we can confirm is a pen camera, and there are other types that we dont want to get into, again, given the sensitivity of the investigation. Reporter how many cameras were in the office . Multiple. There were multiple cameras. I really cant get into a number. Nor can police say what else the cameras were hidden in. They say theyre examining, quote, a mountain of evidence. Still, in video cameras, multiple computers, servers, external hard drives. Theyre investigating whether levee might have had an accomplice and what did he do with this information . Did he sell it . Was it put on the internet . Reporter some of dr. Levees patients spoke to cnn affiliate wjz. Dr. Levee was the sweetest person. This is all this is just shocking. Thats a violation. You understand what im saying . Thats somebody youre supposed to trust with your body, your information, which is supposed to be confidential. And now dr. Nikita levy cant answer the allegations. After learning of his alleged transgressions on february 4th, they terminated him on february 8th and offered him counsel. Ten days later, police in townsend, maryland, responded to a call here at dr. Levys home. They say he was dead when he was arrived. Theyre investigating it as a suicide. Johns hopkins says it promptly reported the alleged activity to the police. In a statement, Johns Hopkins says, an invasion of patient privacy is intolerable. Words cannot express how deeply sorry we are for every patient whose privacy may have violated. Attorney andrew sclutskin says hes been contacted by patients of dr. Levys. The story is that a Johns Hopkins employee noticed something unusual about dr. Levys examinations and alerted a supervisor. No one knows at this point what it was other than hopkins and theyre not speaking about the issue. Reporter Johns Hopkins says it is conducting its own investigation. We could not reach dr. Levys attorney for comment. Earlier, i went to dr. Levys home and knocked on the door to see if anyone there would speak on his behalf. A gentleman who answered the door declined to do so and said, quote, this is all news to us. Wolf, kate . What a story, brian todd, thanks very much, brian todd in baltimore. Cnns erin burnett is going outfront tonight on a gruesome discovery. The body of a missing woman found inside a Los Angeles Hotel water tank. Erin joins me now live with a preview. What a crazy story, erin. And whats even crazier is how they found out about this. People who were staying at this hotel started complaining of low water pressure and funny tasting water. Frightening. And when they went up to investigate the reason why, they found a body. Were going to tell you about this story and exactly how this could have happened. And also, what the link is between that body and the water that people were drinking in the hotel room and who the person was. We also have exclusive and new photos of Reeva Steenkamp, of course, the girlfriend of Oscar Pistorius, who was killed. These are some Pretty Amazing pictures of a man who had worked with her several times on photo shoots and theyre pretty theyre pretty beautiful. And in tonights essay, we talk about the post offices new fashion foray with a yeah, pretty strong opinion on that one. See you guys at the top of the hour. As always, well see you at the top of the hour. Still ahead, a weather man goes live from a stunt plane to experience the force of eight gs, but it doesnt quite go as planned. Find out what happened. ] [ barking ] come on, boy [ barks ] oh, heavenly day here we go. Chachacha dont you know that i love ya chachachachacha always thinking of ya all around the World Everybody singin along singin along fly me to the moon let me play among the stars let me see what spring [ birds chirping ] [ male announcer ] with the best lineup of vehicles ever, introducing the new chevrolet. Oh, heavenly day why just go from a to b when imagination can take you everywhere . All the clouds blew away chevrolet. Find new roads. I have to know the weather patterns. I upgraded to the new sprint direct connect. So i can get three times the coverage. [ manager 2 ] its like working in a giant sandbox. With all these huge toys. And with the fastest pushtotalk. I can keep track of them all. [ male announcer ] upgrade to the new done with access to the fastest pushtotalk and three times the coverage. Now when you buy one kyocera duraxt rugged phone for 69. 99, youll get four free. Other offers available. Visit a sprint store, or call 8558784biz. I took my son fishing every year. We had a great spot, not easy to find, but worth it. But with copd making it hard to breathe, i thought those days might be over. So my doctor prescribed symbicort. It helps significantly improve my lung function starting within five minutes. Symbicort doesnt replace a rescue inhaler for sudden symptoms. With symbicort, today im breathing better. And that means. Fish on symbicort is for copd including chronic bronchitis and emphysema. It should not be taken more than twice a day. Symbicort may increase your risk of lung infections, osteoporosis, and some eye problems. Tell your doctor if you have a heart condition or high Blood Pressure before taking it. With copd, i thought id miss our family tradition. Now symbicort significantly improves my lung function, starting within 5 minutes. And that makes a difference in my breathing. Today, were ready for whatever swims our way. Ask your doctor about symbicort. I got my first prescription free. Call or click to learn more. [ male announcer ] if you cant afford your medication, astrazeneca may be able to help. [ male announcer ] if you cant afford your medication, science and evidence based drug and alcohol treatment center. Where your addiction stops and your new life begins. Call now. A weathermans wild ride. Heres cnns jeanne moos. Reporter youre about to see a weathermans face become a little more weathered. Grant was