Transcripts For CNNW The Situation Room With Wolf Blitzer 20110921

for state hood. this hour, the president is expected to meet with palestinian authority president abbas. he held a separate meeting just a little while ago with benjamin netanyahu. let's bring in our chief white house correspondent, jessica yellin. she's covering this from new york. the president also delivered a major address before the u.n. general assembly. >> that's rig, wolf. the palestinians continue pressing their case here at the united nations and it was the most dramatic issue the president addressed in his speech today with repeated the theme, peace is hard. the president trumpeted progress -- >> at the end of this year, america's military operation in iraq will be over. osama bin laden is gone. >> and warned of challenges ahead. >> where we stand with the syrian people or their oppressors. >> what so many were listening for was this. >> we seek a future where palestinians live in a sovereign sate of their own. >> how would we explain his opposition to the palestinian push for state hood at the united nations? >> peace will not come through statements and resolutions tat united nations. if it were that easy, it would have been accomplished by now. >> the most striking? >> let us be honest with ourselves. israel is surrounded by neighbors that have waged repeated wars against them. a small country of less than 8 million people look out at a world where leaders of much larger nations threaten to wipe it off the map. >> words welcome d by those who stand with israel. >> and ultimately, the president said what is most morniponte, ts the only way to achieve peace, palestinian state hood, is through negotiation. >> i think it did give short trip to palestinian concerns. he didn't mention occupation, settlements. this doesn't contribute to helping find a compromise. >> right after the speech, president obama met with benjamin netanyahu. now, the prime minister did not attend the president's speech, but he did read the text and multiple sources tell cnn that when the two leaders met, benjamin netanyahu singled out that section of the speech about israel's security and the persecution of the jews and conveyed to the president he was deeply moved by that language. wolf? >> interesting. so much of this israeli palestinian conflict in the u.s. involvement is symbolic, as you know. netanyahu had a full scale photo opportunity with the president, tv cameras in there. they both spoke, but when he scheduled to meet within the hour within the palestinian president, there's not going to be tv cameras in there. it's going to strictly be still photos. photographers only. no real opportunity for the two of them to speak together. what's the white house rationale avoiding a full scale photo opportunity at least the top of the meeting? >> their meeting with much more about what is ahead. that relationship is a very tricky one and they don't want anything to derail the state of negotiations. right now, wolf, the palestinians have a potential state hood request that comes before the security counsel that could go in as a letter on friday and nothing should get in the way of the delicate state of those discussions. that meeting is not so much about what happens here, but negotiations in the weeks and months to come, so they want a very prooiflt engagement between the two leaders. >> yeah, i know these decisions are not made casually by top white house officials. there's obviously some rationale for this and we'll discuss that more later. stand by. thanks very much. some of the toughest backlash against president obama's policy in the middle east is comeing from a potentia rival out there on the campaign trail. the republican presidential front-runner, rick perry, but some are arguing that governor perry may not be doing himself many favors. let's bring in jim acosta. he's got the latest details. >> wolf, as rick perry attacked the president's handling of israel this week, he walked into the mind field that is the struggle for pes in the middle east. after rick perry accused president obama of purr seeing a policy of appeasement in the middle east at a news conference, he turned the podium over to a conservative israeli politician. who's as blount spoken as the texas governor. >> i want to thank governor perry for taking a bold stand on the issue, writing down and saying what you believe. that's what we need today. we need people who support justice. people who support commitment. and we need leadership. >> as deputy speaker of israel, he is not only against this week's palestinian attempt for state hood at the united nati s nations. he's against a palestinian state altogether. >> to my perspective, it's unacceptable. there's a place for one state under israel. >> naturally, reporters asked perry if he share it is same view. >> i do support a two-state solution only if the nation of israel and the palestinian authorities do sit down and have direct negotiations. >> to one of perry's rivals, rick santorum, the governor' comments seemed amateurish. >> governor perry's now making his first statements about these issues. we're finding out what he believes or what he's being advised to say. >> what do you say to republicans who accuse the president of throwing the country under the bus? but jerry argues citing with his israeli politicians who oppose a two-state situation in the middle east is a dangerous employ for votes. >> to pretend the president's done something extraordinarily out of line is playing politics with people's lives and the throwing israel under the bus. >> i hope most americans realize where there's a part of the world where our children are still being victimized. >> perry, who is seen here on a visit to israel as governor, may have been reminding the crucial block of evangelical voters, he's one of them. >> i also as a christian, have a clear directive to support israel. >> christian conservatives like those at perry's prayer event earlier this year can tell you it's right in the book of genesis. those who blessed the jews will be blessed, those who don't are cursed. >> he is a conviction politics. these are his convictions. i do think that these convictions will play well with evangelicals. >> expect israel to come up at the republican debate tomorrow night not only because of what's happening this week at the u.n., but also because the debate is taking place in florida where the jewish debate could determine who wins the white house next year, wolf. >> thanks very much. we're going to be speaking with israeli and palestinian officials later. let's get to another huge story. the state of georgia. let's go there. time is running out for a convicted death row inmate who's being embraced by some people around the world. we're talking about troy davis. he's scheduled to die by lethal injection less than two hours from now for a crime a lot of people say he did not commit. let's go to david in jackson, georgia outside the prison. what's the latest? >> wolf, his last minute legal appeals continue to work their way through the court. his attorneys filed an appeal in a superior court here in georgia. the judge just a short time ago, denied that. his attorneys are now going to the supreme court of georgia. they say if they're not successful there, they will rush this up again to the u.s. supreme court. but at this hour, troy davis has never been closer to execution. he's been scheduled three times before. his execution had been delayed, called off at one time was two and a half hours before it was supposed to happen. so now, he is closer than ever to his date with lethal injection here on georgia's death row and going according to schedule if everything is going as planned, that he is already said good-bye to his friends and family. had about 25 visitors today according to prison officials and now, he would be being served his final meal. he didn't ask for anything special. it's not even known he will be eating at this time with just less than two hours left. as you can see behind me, several hundred people on the grounds. supporting troy davis, those are some of the same people we've seen marching through the streets of atlanta and demonstrating at the state capital and so far, their voices have not been enough to stop this execution, but wolf, right now, everyone just watching the clock and hoping that last minute legal appeal such as it is, finds some fresh ears and stops this execution. >> if there's something developing over the next nearly go hours, he's schedule d to be executed at 7:00 p.m., let us know. we're also scheduled to speak to jeffrey toobin. there may be some legal maneuverings going on. stand by. more on that story coming up. an emotional reunion more than two years in the making ahead. the dramatic release of two jailed hikers in iran. plus, that critical meeting between president obama and mohamed abbas only moments away from now. we'll have a preview. stay with us. you're in "the situation room." 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post a comment on my blog or go to our post on "the situation room's" facebook page. stunning news, wolf. >> yep. all right. thanks very much. jack will be back shortly, but let's get back to the critical meeting about the get underway between president obama and mohamed abbas. joining us now is a senior adviser to president abbas. you're getting ready for that meeting as well. thanks very much for coming in. walk us through what you want right now. do you want a formal vote in the united nations security counsel that would accomplish full membership at a state for the palestinians? >> that's precisely what we want and precisely what we are preparing to do. met with ban ki-moon and walked through with him what is required and friday will submit a letter asking for membership that lets it go to the security counsel president, then put it to vote. >> that could take weeks, if not month. so, you're not asking for a vote right away. >> we are. if it can, but mr. ban ki-moon said procedure delays. if we feel there is any unexplained delay, we'll get to the general assembly. >> so, you're not going to go to the general assembly while this is been considered because you have plenty of votes at the general assembly to get this passed, but that would not be as memorable. >> we have to deliver what we promised them. full membership. if we can't get full membership, we will head back. >> i'm sure the president, president obama, will tell president abbas in this meeting that's about to take place that the u.s. will veto such a measure. what's the point? >> that we are in procedure to get membership. if we can't get this time, we'll come back again. it took jordan two years. the question is not all countries like south of sudan can get the membership in two day. we understand that, but we want to establish that we have a right to this membership and we will keep after it. >> you heard the president say before the general assembly, president obama today, the best way, he supports a palestinian state living alongside israel as you do. he said the best way to do it is through direct negotiations with the israelis. they say they're ready. so, what's the problem? >> the problem is that these negotiations took 20 years when since the time we went to madrid and 19 years since the time we signed the oslo agreement in the white house. this must be something wrong, but negotiations along have not been able to solve the problem. in the meanwhile, israeli occupation continues and deepens and widens by creating colonies and settlements, there ever, something the wrong. not with the vision, the vision is correct. the method has not succeeded. therefore, we cannot just be left to the israelis. >> sounds like you've given up on the peace process in terms of negotiating a deal with the israeli government. >> israeli government have not shown any real -- mr. netanyahu hees here. he could have announced that without any pressure, unilaterally, i will not build any new settlements. i will freeze all occupational related matters. >> if he were to announce a total freeze on settlement activity, would that be enough to jump-start? a freeze is the one condition you're asking for? >> absolutely. >> because they did have a freeze for about ten months. >> mr. barack told us and i'm saying this in public, that there was at least 200 major violations and it did not cover jerusalem to start with. even that, we went to proximity talks. finally, we went to 19 hours of di elect negotiations between president abbas. >> what did you think of president obama's speech today on the palestinian issue and tell me the truth. >> it was a disappointment. the president eloquently talked about the united nations as the place to get peace and war, but not for the palestinians. that's where we're heading. we're heading to the united nation. then talk really about israel being surrounded by neighbors who want to wipe it off the map. that is not true. not one arab country wants to do that. there is an ab rar peace process that wants to normalize -- >> iran has said israel should be wiped off. ahminedjad. >> he's not an arab state. >> he's a muslim. >> yes, i know, i'm not responsible for all the world. he ignored the fact israel is ok pieing the land. he never talked about the agony of the palestinians. the jewish agony of a holocaust is something we all recognize. the worst genocide in history, but now, who is the agonizer? who's the agonized? the victim and victimized? we are subject to occupation and we want it to end. i think that is really what was missing in president obama's speech. >> i asked you to tell me the truth and you didn't shy away. are we going to leave it there, but i want to stay in close touch with you. tomorrow and friday is a big day that abbas addresses the general assemb assembly. we'll stay in close touch. thank you. we'll have the israeli perspective in our next hour. the prime minister of israel will be joining us live. meanwhile, two america hikers jailed in iran are now free men. they're in oman reuniting with their families as we speak. we're getting new video, new information on this very dramatic story. and pieces of a is the light are about to hit earth. it's unclear where they'll land, but now, we know when. exclusive to the military. and commitment is not limited to one's military oath. the same set of values that drive our nation's military are the ones we used to build usaa bank. from free checking to credit cards to loans, our commitment to the military, veterans, and their families is without equal. ♪ visit us online to learn what makes our bank so different. usaa. we know what it means to serve. [ male announcer ] we went to germany's nurburgring to challenge ourselves on the most demanding track in the world. with us, in spirit, was every great car that we'd ever competed with. the bmw m5. and the mercedes-benz e63. for it was their amazing abilities that pushed us to refine, improve and, ultimately, develop the world's fastest production sedan. the cts-v, from cadillac. we don't just make luxury cars. we make cadillacs. the nightmare is finally over for the two american hikers jailed in iran for more than two years. josh pfattal and shane bauer, they are now safely on the ground in oman after being released from tehran's notorious evin prison. here's what they said just moments ago. >> we are so happy we are free and so relieved we are free. our deepest gratitude goes towards his majesty of oman for obtaining our release. we're sincerely grateful the government of oman are hosting us and our families. >> two years in prison is too long and we sincerely hope for the freedom of other political prisoners and others imprisoned in america and oman. thank you very much. >> very dramatic moment. let's go to oman. mohamed is on the scene for us and is joining us on the phone. set the scene for us because a lot of people were waiting more than two years for this moment. >> that's right, wolf. it was a 26-month ordeal, a nightmare for the families and loved ones of josh and shawn that finally came to an end today. there was a lot of speculation last week it could come any day. there was a bit of a delay, but it finally happened today when iranian officials released the two hikers into the custody of omani officials and they came here. not a huge surprise because last year, sarah shourd's last stop was in oman because the omanis had arranged to pay her bail, but it was a very, very emotional scene. when josh and shane i merged from that plane, they ran down the steps of that plan to get on the tarmac and greet the families. we were right there behind if families. there were so much emotion. tiers of joy and what made it more poignant was the fact it was a reunion of sarah and shane. they are engaged. they got engaged while in prison in evin prison. that's when shane bauer proposed to her, so it was a reunion for them and everybody was so happy. the families were cheering when the doors of that plane opened. they just couldn't wait to see josh and shane and it played out in the most dramatic fashion. josh and shawn have left the royal airport and are now in the custody of u.s. officials. we don't know where they're going next, but omani officials tell us they think they'll be in oman at least one day, then will probably head back to the u.s. straight after that. wolf? >> do we know if doctors are taking a look at both of these young men to make sure that they're okay? is that just standard operating procedure when they get out of a prison like they were in in iran for more than two years? >> wolf, we believe they will be looked at by doctors here, that u.s. officials will arrange that, but u.s. officials just aren't commenting on what is going to happen, but we believe that tomorrow, they will be looked at by doctors. also, some are wondering if they might go and visit the grand -- one reason is that sarah shourd, she thanked him, she said when josh and shane are released, she'd love to take them in oman. she wanted to take them, so a lot of speculation. maybe they would go there with sarah shourd, but we just don't know at this hour. u.s. embassy officials not commenting. not sure how long they'll be on the ground, but omani officials told us they'll be here at least one day. >> we're very happy for these young men, their families. the family and friends are reacting. they're overjoyed by the news of the release. so is the president of the united states, barack obama. let's bring in our national correspondent, susan candiotti. she's getting a lot of the reaction. what's the latest, susan? >> hi, wolf. certainly running down the steps of that aircraft and into the arms of their family is hard to forget. the first person that shane made contact with, sarah shourd and josh running into the arms of his parents. now that we've heard from shane and their families and their loved ones, we hope to hear more from them after they spend a little time in oman. they did issue a statement earlier calling this the best day of their lives. who can blame them? they added this, the joy and relief we feel at shane and josh's long awaited freedom knows no bounds. we now have -- we all want nothing more than to wrap shane and josh in our arms. obviously, they have, catch up on two lost years and to make a new beginning for them and for all of us and the families thanked everyone who helped them, from governments, even celebrities. they added this, our appreciation for the warmth and love of our fellow human beings is unending and we know that shane and josh will always be grateful. president obama, as you indicated at the u.n. today in new york, spoke of the hiker's freedom and how much he admires their families and all they've done to get the public involved. >> wonderful news about the hikers. we are thrilled. could not feel better for the families and those moms who we've been in close contact with. it's a wonderful day for them and for us. >> i also spoke with shawn bauer's brother-in-law. his wife is there with shane's parents and sarah shourd for the reunion. he talked about what that moment was like for his wife. >> i'm sure, just overjoyed to finally have them back and to be able to see them and hold them and hug them. he was where he was to try and build bridges between people that don't currently have them, i guess, so i feel he's going to get back out there and keep doing what he was doing. >> we can only hope and possibly expect that when they come back to the united states, perhaps shane and josh will hold a press conference as sarah did when she returned to new york. that was just over a year ago. and perhaps begin to talk more about what their ordeal was like, spending more than two years behind bars and of course, we may also hear more about that lost engagement ring. it's kind of an amusing note to end on because sarah lost that makeshift engagement ring that was made for her by shane bauer. he proposed in prison back in january of 2010. got down on a bended knee and fashioned a ring out of threat from one of his shirts. when she was travels around the country, she excelleaccentually it. >> a great moment indeed. meanwhile, google up on capitol hill. ahead, why it's chairman says the company's now fighting for its survival and the federal reserve attempts to jump-start the ailing economy. up next, we have details on what's being called operation twist. 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[ male announcer ] with integrated healthcare solutions from dell, every file is where dr. ling needs it. now she can spend more time with patients and less time on paperwork. dell. the power to do more. ♪ [ multiple snds ng melodic tune ] ♪ [ malennounc ] at northrop grumman, makthworld a feplace. th's value performance. northr gruan. the federal reserve is taking action in washington to boost the struggling economy. lisa sylvester is monitoring that. some other top stories right now. what's the latest? >> if fed has announced plans to lower long-term interest rates by selling $400 billion in short-term treasuries in exchange for the same amount on longer term bonds. the move dubbed operation twist is intended to push down interest rates, giving consumers more incentive to borrow and spend money. the chairman of google was on capitol hill today telling the committee his company is not violatiing antitrust laws. panel members are trying to determine if google prioritizes its own business lines like youtube and internet searches to the disadvantage of its competito competitors. and nasa now predicts a satellite falling apart in space will crash to earth on friday. 26 pieces of the satellite, some weighing hundreds of pounds, are expected to survive the heat of reentry, but nasa doesn't know where they will fall. the agency says the odds are most pieces will land over water and even if they hit dry land, it's very unlikely anyone will be hit. something to watch out for on friday, wolf. >> we'll watch as we always do. thank you. another story we're watching, a death row inmate. many say he's innocent. he's scheduled to die in less than 90 minutes. are there any legal options left? jeffrey toobin is standing by. and the author of an explosive new book on the obama white house. ron susskind. he's here in "the situation room." we can make an impact on children in need. designed to get self-esteem to the kids so they feel good and are ready to learn. they meet at their school where the principals and teachers get them on buses. take them here so they're able to receive shirts, pants. school supplies. they get to pick out what they want. join the movement impact your world. cnn.com/impact. an airline's job, is to take you from where you are... to where you need to be. and we're not just talking about points on a map. with a more intuitive delta website and mobile app... and the most wifi equipped planes. we let you be everywhere at once. innovations like these are extending our reach so you can extend yours. and now, even at 30,000 feet you can still touch the ground. my grocery bill isn't wasteful spending. my heart medication isn't some political game. our retirement isn't a simple budget line item. i worked hard. i paid into my medicare. and i earned my social security. now, instead of cutting waste and loopholes, washington wants to cut our benefits. that wasn't the agreement. join the members of aarp and tell washington to stop cuts to our medicare and social security benefits. [ male announcer ] provocative. ♪ unexpected. ♪ defiant. ♪ the 42 mile per gallon ct hybrid from lexus. the most fuel-efficient luxury car available. ♪ and just what you need to forge your own path. ♪ this is cnn breaking news. >> there's been another development, important development. troy davis is scheduled to be executed in georgia in 75 minutes, but now, the supreme court of georgia has unanimously denied a stay of his execution. jeffrey toobin is watching this. so, is it all over right now, jeffrey, with the supreme court of georgia saying he must be executed at 7:00 p.m. eastern? >> it's pretty much over. he has one chance left. his lawyers just told me. i was just e-mail iing with the. they are going to the united states supreme court. that is the only option remaining. the united states supreme court has a procedure in place. they know when executions are coming. they are expecting an application, so i expect this will be acted on fairly quickly certainly after all these years, after all these hearings, it's unlikely that a stay will be granted, but that possibility exists and that's troy davis' only hope. >> all right. i want you to stand by. we're going to have much more on this at the top of the hour, so stand by. we're going to watch this story very closely. troy davis scheduled to be executed in about 75 minutes unless the united states supreme court does something about that. we'll watch this story. meanwhile, greece is slashing its budget to help secure more aid from its european partners, the cash strapped country struggling to get out of a major debt crisis which could affect your wallet. lisa? >> you know, the stakes are incredibly high. the international monetary fund and european central bank are all working on a deal that would give greece enough cash to cover its bills. greece is on track to run out of money to pay its bills next month and if greece defaults, that would have huge implications in europe and the united states. >> and we're doing the best we can. >> in the movie, contagion, a deadly virus moves across the world as scientists race to find a cure. that's the stuff of hollywood, baugh different kind of epidemic, a debt crisis, could spread throughout europe and across the atlantic to the united states. it starts with greece. teetering on the edge of default. if that happen, it could spill over to bigger countries like italy, whose credit rating was downgraded this week. spain, ireland, portugal and greece have all had similar downgrades this year. so, you may wonder how this affects you and why you should care? >> a recession in europe will slow the growth rate of america down. it may not cause a recession, but it will feel like it and surely contribute to unemployment. >> here's how it could unravel. all signs point to greece not being able to pay back its 355 billion euros in debt. as credit tightens, that could tip europe into a recession. if europeans are buying fewer u.s. goods, that could push the u.s. into recession. push down the u.s. stock market. american companies would scale back production and you could be left out of a job. timothy geithner says what is happening in europe is already undermining confidence in the united states. >> and we have a huge stake as a country in helping them deal with those challenges. we have a huge economic stake, financial stake and it is not in the sfwres interest of the united states for europe to be weakened by a protracted economic and foonl crisis. >> the european union is working on a new aid package for greece, but greece is quickly running out of two things. cash and time. and today, greece's government, as part of a new european bailout deal, has agreed to a new round of budget cuts, including cutting pensions for some of its workers. wolf? >> lisa, thanks very much. president obama as our viewers by now know, making the case for diplomacy right here at the united nations. did he sound though more like a campaigner? stay was. our strategy session is next. [ indistinct talking on radio ] [ tires screech ] [ crying ] [ applause ] [ laughs ] [ tires screech ] [ male announcer ] your life will have to flash by even faster. autodrive brakes on the cadillac srx activate after rain is detected to help improve braking performance. we don't just make luxury cars. we make cadillacs. peace is hard but we flow it is possible. so together, let us be resolved to see that is it defined by our hopes and not by our fears. together, let us make peace, but a peace most importantly that will last. thank you very much. thank you. >> the president earlier in the day wrapping up his speech at united nations general assembly. let's assess what the president had to say. joining us, our cnn political contribute, paul begala, priorities usa and priorities usa action, also joining us, our newest cnn political contribute, former bush secretary, ari flesher, a member of the pr republican jewish coalition. thanks very much. ari, what did you think of the president. handling of this israeli/palestinian issue at general assembly today? >> it might surprise you, i liked it today. the president did something this year he did not do last year and added a robust pro-israel paragraph, talked about the holocaust, 6 million lives lost, how israel's in a hostile neighborhood where rockets are fired at children. he did not say that last year. what he did say last year, which he omitted this year, was a call for israel to end the settlements and extend the settlement moratorium. a clear difference this year from last year. i suspect election politics have to do with it. i like it. welcome to hear. >> we didn't larry today, paul, what the president said back on may 19th, caused a huge uproar, that israel should withdraw to the pre-1967 lines with mutually agreed land swaps. today he spoke in general terms about borders, security, issues like that. was this more of a political speech as opposed to a substantive diplomatic speech, paul? >> i suppose all politics is global, if i can turn tip o'neill's phrase on its head, but, no. everybody's proud to see our president being the leader of the free world, speaking at united nations, i think ari maybes a good point. he stood very robustly by america's only democratic ally in the region, that is israel, when israel is under attack in that very chamber. i thought that was wonderful, as an american, not just democrat. i think the political peril is more on the side of governor rick perry of texas who during a time and at a place in new york, while the president's meeting with foreign leaders in defending america and israel, governor perry came here and accused our president, in his words of apiecement and called palestinian, palestine, those not from texas, it's a small town in east texas called palestine but it's confusing vienna, georgia, with the city in austria. if any democrat had done that it would have been just as mall but i don't remember any democrat that to bush. >> to answer your question, i think the president obama did not stand robustly by israel, i said he added a paragraph defending israel he did not have in last year. the reason he's doing that, he's feeling to act as if he's robustly behind israel. that's one of the reasons he lost support. and heavily jewish district, went from democrat to republican since the first time since the 1920s. so i think -- >> but ari, was it appropriate for governor perry, was it appropriate for governor perry to show up in new york on the eve of the president's major address before the general assembly and just, you know, hit him very hard on israel? >> of course he was. he's run for the man's job, that's what you're doing when running for president. that's more appropriate than what president obama spoke about israel and return to the 67 borders land swaps which led to the diplomatic blowup of last spring. on the political front, of course it's appropriate. that's what candidates do. and i think it's healthy to have a debate how far the united states should go in supporting israel. i think obama's been lacking in. the more pressure, the more he's tacking in israel's direction. i like that. >> all right. paul, don't answer, because we've got to go. i'm trying to be nice to ari, today's his first day, as our new cnn contributor. >> you're always nice. >> let me welcome ari. thrilled to have him on the team. >> all of us are. he'll be a terrific addition to our political lineup. thanks very much. the other breaking news following, troy davis, georgia, supporters are watching the clock right now. he's scheduled to die in a little bit more than one hour. we're going back to georgia for a live report. is there anything that can be done to prevent that?yo that cilc borrowed technology from ferrari to develop its suspension system? or what if we told you that ferrari borrowed technology from cadillac to develop its suspension system? magnetic ride control -- pioneered by cadillac, perfected in the 556-horsepower cts-v. we don't just make luxury cars. we make cadillacs. a network of possibilities... ♪ in here, pets never get lost. ♪ in here, every continent fits in one room. it was fun, we played football outside. why are you sitting in the dark? ♪ [ male announcer ] in here, you're never away from home. it's the at&t network. and what's possible in here is almost impossible to say. it's the at&t network. so to save some money... man: looks great, hun... woman: ...and we're not real proud of this. man: no...we're not. woman: we...um... teen: have you guys seen captain stewie and lil' miss neptune? dad: did you look all over the place? under your desk? all around? teen: uh, they're fish, they live in a bowl. dad: what're gonna do? anncr: there's an easier way to save. anncr: there's an easier way to save. teen: whatever. anncr: get online. go to 15% or more on car insurance.r:u [ male ] using clean american fuel is just a pipe dream. ♪ [ female announcer ] we're rolling away misperceptions about energy independence. did you know that today about a quarter of all new transit buses use clean, american natural gas? we have more natural gas than saudi arabia has oil. so how come we're not using it even more? start a conversation about using more natural gas vehicles in your community. i tell you what i can spend. i do my best to make it work. i'm back on the road safely. and i saved you money on brakes. that's personal pricing. jack cafferty joining us with "the cafferty file." >> the question is, what does it say about president obama's reelections chances next year if sarah palin is within five points of him in one national poll and she's not even in the race? ron in minnesota writes, tell me america is wising up to the fact that candidates of both major political parties are equally worthless, elections have become a series of choices about which pile of political slop smells the least offensive. and most machine americans are saying they can't tell any difference on the one issue that matters this election cycle, the economy. ken writes, palin's irrelevant because she's not running. gays got rid of don't ask, don't tell, hispanics are not facing deportation, hedge fund managers continue to make billions in the swap marks and blacks will voter to obama. palin means nothing. larry in texas writes, several things if palin's that close. obama better panic like james carville suggested, he better consider calling hillary and asking her to run but mainly it says the american people are pretty dumb when it comes to future if they think sarah palin's the answer to our problems. brad in oregon says, it won't mean anything if palin doesn't run or if perry becomes the nominee. the worst enemy of the republican's chances to win the presidency is the republican base itself. if they pick someone to right wing or too crazy to be the republican nominee the independents will hold their noses and vote for obama. brenda writes on facebook, goes to show americans are fed up and any choice is better than what we currently have. doug says, palin is the only potential candidate in the field with enough name recognition and star power to beat obama, enough to safr independents will hold their noses and vote for palin despite her hard core religious leanings to make it an even race. once the queen takes the bishop, romney, she will checkmate the king, obama. go to cnn.com/caffertyfile or through the post on "the situation room" facebook page. >> excellent stuff, jack. thank you. you're in "the situation room." happening now, breaking news, one after another. last-minute appeals being denied in eight controversial execution may be one hour away. many are convinced the state of georgia is about to put an innocent man to death. also -- his book alleges indecision, in fighting and an old boy's club atmosphere in the white house. ru ron suskind is here. the investigation into fast and furious. the u.s. government operation that put thousands of illegal guns on the streets of mexico, one lawmaker accuses the justice department of stonewalling. we want to welcome viewers in the united states and around the world. i'm wolf blitzer at the united nations. you're in "the situation room." >> this is cnn breaking news. >> let's begin with breaking news. hope is giving way to grim resignation in jackson, georgia, where a man thousands of people believe to be innocent is scheduled to be executed in less than one hour. troy davis arrested in 1989 for the shooting death of an off-duty police officer in 1991, he was convicted based on eyewitness testimony. but by 2003, 7 of 9 witnesses had recanted, some saying police pressured them to implicate davis. execution has been postponed three times, but tonight it appears that may be no reprieve. cnn's david mattingly just outside the prison where davis is facing lethal injection in one hour. what's happening right now? >> reporter: wolf, troy davis' last-minute appeal has failed completely at the state level here in georgia. he first went to superior court, they denied his appeal, that kicked it up to the georgia supreme court, they just in the last hour denied that appeal, as well. his attorneys tell us, we haven't gotten confirmation this happened but they say they are going to the u.s. supreme court with this appeal and petition to stop or delay this execution while the court hears their appeal. there are several things that can happen now but the fact is, we are less than an hour away from the execution and no one can say for sure if it will be delayed or if it will go on as scheduled. if everything is going on as scheduled, inside the prison, troy davis is now eligible to take a mild sedative to calm his nerves before the execution. he is that close to his date with lethal injection. it's the closest he's ever been, wolf. three other times delayed, once within 2 1/2 hours. he's never been this close to execution. and, number of people who are supporting him here on the grounds of the prison are keenly aware of this. we talked to some earlier and they say clearly this case is about life and death. >> emotions in play are that we're about to execute an innocent man, seven of the nine witnesses have come forward and either recanted or said that, you know, that testimony was forced. and so there's a genuine feeling among people here and across the nation that we're about to do the unthinkable. >> there was so much wrong with this case. it was absolutely unconscionable. it was inconceivable i live in a country where i vote, i participate, and yet something like this could happen. >> reporter: and so many people here repeating that over and over, chanting just a little bit louder every quarter hour, wolf, as we get closer and closer to that scheduled execution. >> but, david, there are a lot of passionate people who believe he did in fact, kill mark allen mcphail, the police officer, including family member, prosecutors and the georgia supreme court in its decision that came out, they were unanimous in rejecting any final stay. so there are two sides to this story that's unfolding right now. you're hearing a lot from both. >> reporter: that's right, wolf. first of all, from the courts, davis lost at every single round and this has gone to dozens of judges, dozens of courts throughout the appellate process over the last 20 years. he has never scored a win. every single court has upheld his original conviction for the murder of this police officer. there are a few people here in another section away from us who are supporting the execution tonight. they are not nearly as loud. not nearly as great in number, but they here. but right now, center stage belongs to the large and vocal crowd of supporters for troy davis. >> thanks, david. we'll stay in close touch with you this hour and see what unfolds. dave is lawyers made a final appeal. supporters took their case also to the white house with about 10 people protesting any execution. let's bring in our senior legal analyst, jeffrey toobin. what are you hearing? what are prospects that within an hour the u.s. supreme court could stay the execution? >> well i think it's unlikely that they will get involved at this point. in 2009 the supreme court did something it almost never does, it ordered a hearing into the troy davis case. it said, take a look at this evidence again and a federal judge in savanna, georgia, did that in 2010, and he wrote 150-page opinion reviewing all of the evidence, and acknowledging that seven of the nine witnesses had partially recanted some of their testimony. and the judge moore said, even with those partial recantations, the evidence is strong enough to support the jury's verdict of guilty and the death sentence. it was that 150-page opinion in august of last year that was really the last word in this case. and since then, it's just been very much an uphill battle for troy davis' lawyer, having got than hearing and having lost, they haven't had much of a legal leg to stand on. and today's efforts have failed and it certainly look like they'll continue to fail in the next hour. >> you saw those protests over at the white house appealing to president obama to do something. he's here in new york, as you well know. but is it -- is that at all realistic that a president of the united states at this late stage could intervene and stop this execution? >> new york president obama has no legal right to get involved in this case, and georgia law is unusual in another respect in that the governor of georgia has no legal right to get involved. in many states the governor can issue a reprieve at the last minute. in this -- in georgia, it's only the board of pardons that can issue a stay and on monday the georgia board of pardons said they were not issuing a stay. so it really is up to the united states supreme court. that's the only option left for troy davis at this point. >> we'll see if those justices, at least one of them, makes a decision to stop this execution. we'll stay in close touch with you and david, jeffrey. president obama in an awkward position of having to explain to the united nations why the united states has threatened to veto a quest for palestinian statehood, a goal which the president himself laid out in his speech to the general assembly just a year ago. he said he still believes palestinians deserve their own independent state but says the united nations is not the venue to create it. >> i know that many are frustrated by the lack of progress. i assure you, so am i. but the question isn't the goal that we seek. the question is how do we reach that goal? . and i am convinced there is no shortcut to the end of a conflict that has endured for decades. peace is hard work. peace will not come through statements and resolutions at the united nations, if it were that easy, it would have been accomplished by now. >> let's talk about the president's speech. it was widely watched and assessed. gloria borger is joining us. politically, and i think we can say politically begin the season of politics right now what was the president trying to achieve in the u.n. speech? >> he was trying to thread the needle, wolf. as you know better than anyone, he had on the one thoond bhand balance his support for palestinian state, with his unequivocal support for israel. and that's not easy given the fact that the venue was the united nations, just a year ago he went to the united nations and called for an independent palestinian state. but this time, this was really a speech, i think very much for domestic political consumption. as you know, wolf, his middle east policy has come under great criticism from republicans and so what we heard him do today is state over and over and over again his unequivocal support for israel. his sympathy for israel's security problems and in the end the israelis seem to like his speech, actually more than some of those republicans running for the presidency, wolf. >> that was very interesting, with the exception of ron paul, almo all republican candidates slamming president obama when it comes to israel. a fascinating development. >> well, it is. you had rick perry in new york, very close to the u.n. yesterday, calling the president's policy appeasement. as you know, that is a tough word. calling it reckless. and even today mitt romney was very critical of the president when he spoke about it in miami. take a listen. >> i think what the president did that was an error with regards to israel was begin dictating what he would do and saying here you should do this and you should do that. those discussions should be held behind closed door. the president should not be negotiating for his ally, israel. the president should stand behind israel. >> well, you can be sure, wolf that we haven't heard the end of this, that the president's middle east policy which, by the way, is controversial and has not been successful, is going to be an issue in the campaign. but you know in the old days, which i remember, you'd actually wait until the president left the united nations to start criticizing him. but we saw rick perry do it even before his speech yesterday. so times have changed. >> times certainly have changed. gloria, like all americans, jewish-americans have lost some faith in this president base on some polls that we've watched pretty closely. >> they have, because they believe that the policy has not been successful, some are critical of the policy which called for a freeze on settlements. let's take a look back at the jewish vote in 2008, when barack obama was running against john mccain. you see there completely lops e lopsided for barack obama. but now let's take a look at a gallup poll done which asked jewish voters whether they approve of all the president is handling his job. now 54%, down 14 points from may. but i would add, wolf, when you look at that approval rating among jewish rigvoters it's hig than the general approval rate offing of barack obama which is in the low 40% range. it's not great for barack obama. there's room to improve, but it's not the end of the earth yet. >> he's got a year plus to go before an election. thanks very much, gloria. jack cafferty's joining us. >> americans are afraid where our economies going and it shows. a new study on financial security shows 40% of consumers have cut their spending in the last two months. the bankrate.com survey shows supplies to americans in all income groups from the rich down to the poor. consumer spending makes up two-thirds of the u.s. economy. so if the cutback in spending continues, we could be headed into another recession. the study shows people across all educational levels say their net worth is lower today than it was last year. job security's a big worry. 23% of those under 30 say they feel more secure in their jobs now than they did a year ago. that's a little more than one in five. that number drops to 10% for people between the ages of 50 and 64. it's easy to understand why people are concerned when unemployment remains stubbornly above 9% and forecast to remain there through the end of next year. for those who are lucky enough to have a job, median incomes are declining. 46.2 million people in the united states living in poverty, the highest level in almost 20 years. and as if people didn't have enough reason to worry, the international monetary fund out with a stark warning today, saying the global economy has entered a dangerous, new phase with the recovery weakening around the world considerably. it says if the united states can't find a way to deal with ballooning national debt, the imf says the result could be a lost decade for growth. decade. ten years. americans get it. a new "usa today" doi/gallup pole don't think the recovery will happen soon. how are economic fears changing you're life? cnn.com/caffertyfile or go to the post on "the situation room's" facebook page. the white house is pushing back hard against explosive allegations in a brand-new book by ron suskind, joining us live later this hour. a congressman accuses the justice department of stonewalling his investigation into a controversial operation. a top israeli official standing by live to join us as rick perry and other republicans are bashing president obama when it comes to israel. what's going on? i'll ask israel's deputy foreign minister, live here in the situation.. jerry, how are you doing? fine, i just got a little fender bender. oh, jerry, i'm so sorry. i would love to help but remember, you dropped us last month. yeah, you know it's funny. it only took 15 minutes to sign up for that new auto insurance company but it's taken a lot longer to hear back. is your car up a pole again? [ crying ] i miss you, jessica! jerry, are you crying? no, i just, i bit my tongue. [ male announcer ] get to a better state. state farm. after meeting with the israeli prime minister netanyahu today, president obama meeting with the palestinian authority president, mahmoud abbas. talk about what's going on. a lot of dramatic developments unfolding. the israeli deputy foreign minister danny ayalon is joining us. >> good to see you, wolf. >> talk about what's going right now. do you trust president obama? >> absolutely. i think that the speech he made this morning was a true speech of a leader who is courageous, who is wise, and we would hope that the palestinians would heed this advice and come to the negotiation table. >> did you have any problem at all with what he said today? >> no, we didn't have any problems. nothing we would like more but to come together jointly with the palestinians and submit a resolution of two stated for two nations with the end of conflict with real peace and security. just like south sudan, the president was very wise to invoke, to example south sudan. you cannot put the process on the top. first you have to iron out differences on the ground. >> when i interviewed him the last hour, the adviser to president abbas, the palestinian authority president, he said he's ready, palestinians are ready to sit down and negotiate with israel a peace settlement under one condition, you freeze settlement activity on the west bank. why not do that and restart the peace negotiations? >> this is the same old story of making excuses and putting some obstacles. we have, you know, we have frozen settlements for ten months -- >> in the past. >> we did in the past. the settlement is only one issue of many of refugees, jerusalem, recognition israel's right, of defensible borders and other things. why cherry pick one issue out of many, which are interconnected anyway? we say come. if you're serious, stop with excuses, come sit down without precons. they have not raised the issue of precondition when they talked before with former israeli governments whether sharon government or -- >> i guess the argument is, what would be so bad about freezing settlements if it jump starts the negotiations you get negotiations going and it eases some of the dleptiplomatic isoln which israel is facing from arab countries, the europeans. tom friedman, a friend of israel as you know, writing in "the new york times" last sunday, israel today is giving its friends and president obama's one of them, nothing defend it with. israel can fight with everyone or choose not to surrender, but to blunt trends with a peace overture that fair minded people would recognize is serious and thereby reduce its isolation. you read the column. >> yes. it's the same argument that we hear all over again. we heard it before the so-called arab spring, we hear it throughout the so-called arab spring. and i can tell you the palestinian problem in the middle east is not central to the middle east. there are so many other real fundamental problems that the palestinians have nothing to do with it. i would beg tom friedman and the others not to keep harassing israel because israel has done a lot in the last 18 years in terms of territories, in terms of dismantling settlements or of gaza and receiving -- nobody's asking the palestinians what are they willing to do for peace because they've kept their views in an intransigent way. are they willing to give up refugees, willing to give us the benefit of self-determining ourselves as a ju, state. they are not doing that. this is a very, very, very complicated issue. so people from the outside to give advice to one side and not to the other is totally immaterial and not serious. >> is the u.s./israel security relationship, military-to-military, stronger today than ever before? >> i can tell you that we go on a great trajectory and we have never had better security relations. the times calls for it and we're proud to be the united states best friend and ally and most dependable ally the deputy speaker of the parliament the knesset came to new york, met with rick perry, the republican presidential candidate, and blasted the obama administration in the middle of presidential -- is this appropriate for an israeli politician to come to the united states and directly interfere in domestic american politics? >> not at all. first and foremost, with all due respect to the deputy speaker, he's not engaged with the u.s./israeli bilateral relations so he doesn't speak of any knowledge. >> a blunder on the part of him? >> absolutely. and secondly, and secondly, i can tell you that the last thing israel wants is to come between democrats and republicans. israel has been and will continue to be a consensus issue. we are color-blind when it comes to republicans or democrats. you are all americans and we respect america, we are proud, as i say to be your best friend and allies. you are our best friend and allies. so many things bond us together from ethos and interest and value. we work together on counterterrorism and anti-proliferation and so many things that make the world secure. >> i raise the question, the deputy speaker of the knesset, a member of the likud party, he's the lead of the likud, did he say to him, don't do this? >> i don't know. but he misspoke, absolutely he did. we live in a very, very vibrant democracy with freedom of speech. anyone can say his mind and the prime minister doesn't control members of the knesset, just like the president doesn't control members of congress. >> some leaders of political parties can influence members of their own party but we'll discuss that on another occasion. danny ayalon, former israeli ambassador to the united states, thanks very much. >> thank you. a best-selling author facing serious pushback from the white house on his brand-new book, a book on president obama's first years in the white house. does he think the president was too inexperienced to run the united states of america? ron suskind standing by live. he'll join us next, right here in "the situation room." there's only one bottle left ! i've got to tell susie ! the vending machine on elm is almost empty. i'm on it, boss. new pony ? sorry ! we are open for business. let's reroute greg to fresno. growing businesses use machine-to-machine technology from verizon wireless. susie ! the vending machine... already filled. cool bike. because the business with the best technology rules. my grocery bill isn't wasteful spending. my heart medication isn't some political game. our retirement isn't a simple budget line item. i worked hard. i paid into my medicare. and i earned my social security. now, instead of cutting waste and loopholes, washington wants to cut our benefits. that wasn't the agreement. join the members of aarp and tell washington to stop cuts to our medicare and social security benefits. borrowed technology from ferrari to develop its suspension system? or what if we told you that ferrari borrowed technology from cadillac to develop its suspension system? magnetic ride control -- pioneered by cadillac, perfected in the 556-horsepower cts-v. we don't just make luxury cars. we make cadillacs. the book is called "confidence men" and it makes serious allegations about the obama white house, including serious in-fighting, indecision in the early days and a workplace where women are said to be largely cut off from the pez the author, ron suskind, here to defend his brand-new book. ron, as you well know, you're being hit very hard by the white house. they say the book is sloppy. they say you take quotes out of context. they say part of is it completely inaccurate. here's the question, do you acknowledge at least as of now that you did make some mistakes? >> wolf, in a page of dk book of 500 pages there's going to be typos a name spelled this way or that. the fact of the matter the book is densely researched. the allegations, disclosures here were run by the white house prior to publication. comments, defenses are in the book, page after page, in longful quotes especially tim geithner. beyond that the president was confronted with all of the evidence, he responded he didn't contradict, he affirmed and responded how he's grown from these challenges in office. that's the book. it has a wholeness because the denials are already in there. >> we've been doing some reporting on the book over the past few days. brian todd has done a few reports, one of the serious allegations you make is on sexism, allegedly occurring in the obama white house. the book you write this, you quote anita dunn saying, a senior adviser, communications adviser to the president, she was, this place would be in court for hostile workplace because it actually fit all of the classic legal requirements for a genuinely hostile workplace to women. that's the way it's quoted in the book. but the audiotape which you made available to "the washington post" actually says this, it says, i remember once i told valerie, referring to valerie jarrett, another senior adviser to the president, i said if it weren't for the president, this place would be in court for a hostile workplace because it actually fit all of the classic legal requirements for a genuine hostile workplace to women. that phrase, that clause, if it weren't for the president you left out of the book, why did you do that? >> wolf, you're behind the times. get your research staff to read "the washington post." the answer's up, as it's been up on the online blogs. what happened here, i'll explain it quickly i don't want to spend too much time, it's a settled issue, is that after i told anita about that quote, she said, look parts will get me sort of in a pickle. one is my husband is a chief counsel, counsel to the president i can't be talking in present tense back then about a legal issue in terms of women. i want to say, looking back, this is the first thing she said. i said all right. and i said what did you mean about, you know if not for the president, it doesn't make much sense as though if it was a different president but the same workplace you'd feel differently. i said what do you mean by that? she says, look, i meant we really love the president, we walk across hot coals for the guy. here's the quote, the core of it all of it really is there, looking back, this was a hostile workplace and i'm going to put the thing about your feelings about the president generally in the paragraph before that. that was the conversation anita and i had before publication. she understands that. i said that's the quote that's going to go in the book and that's where it ended. i think it's important, wolf, that people understand that at a moment like this, when you pull back the curtain on a white house, really for the first time, they're going to respond like this. i mean, wolf, we were around in 2004 when i had done something similar in a way with the price of loyalty for the bush white house, of course they responded more vigorously with the frivolous federal law investigation of me and the treasury secretary paul o'neill, which of course all faded soon enough. i think what's happening now people are reading the book. it's often sympathetic to the president. he was in a real box, a guy with extraordinary capacities, inspirational figure at a time of crisis but little management skill, executive experience in exercising power certainly, and he walks into a tough spot in crisis, with a group of advisers all of whom worked together under bill clinton, talked to each other for many years. the president took a while to kind of get control of this building. look, presidents often take a while to learn how to be president. it took him a little longer. and i think people are now focusing on peopte rouse's memo which forms a blueprint how the president can take back control of the white house and ends up with the ouster of or the moving out of almost all of that staff. i think that's kind of an inspirational story in a way. barack obama rises into his fullness and in the final interview, in the book, obama is really passionate. i've got the staff i need now to do the job i need to do now for a country in need. and the way i think that's what you're seeing. >> it's clear, though, that based on what you write, the president wasn't necessarily ready to be president of the united states when he first took office, although he's grown into it. that's your bottom line, right? >> that's the bottom line of the book. laid out in a long drama. >> the confidence, he knows you have confidence he knows what he's doing now, that is what you're saying? >> you know, there's a lot to suggest that he really has grown into his fullness. look at the jobs speech and his comments early this week be that's the forceful obama that he's telegraphing in the long 50-minute interview, a come into my own quality, that says there are tough choices here and i'm ready to make them. let's see what happens from here. but i think obama, if he was sitting with is now would say, see suskind, what i was telling you, that's the president that i'm talking about. . >> the book is entitled "confidence men," the author's ron suskind. thanks for coming in. >> always a pleasure, wolf. a two-year nightmare ends for two american hikers held by iran. dramatic, new information coming in on where they're heading, where they are right now, when they're coming back to the united states. plus -- mexican cartels armed with illegal american guns as part of a secret atf operation. whoa! hy [ dog barks, growls ] ♪ whoa, watch out, little man. ♪ [ male announcer ] when you take away the worry, it's easy to enjoy the ride. hey, bud. hey, dad. 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[ male announcer ] progresso. 40 soups 100 calories or less. naomi pryce: i am. i'm in the name your own price division. i find empty hotel rooms and help people save - >> - up to 60% off. i am familiar. your name? > naomi pryce. >> what other "negotiating" skills do you have? > i'm a fifth-degree black belt. >> as am i. > i'm fluent in 37 languages. >> (indistinct clicking) > and i'm a master of disguise >> as am i. > as am i. >> as am i. > as am i. >> well played naomi pryce. mexican cartels armed with assault-type weapons illegally sold as part of atf operation in the firearms agency has come under intense scrutiny, but now the man leading a congressional investigation has fresh criticism of the u.s. justice department. our own brian todd spoke with him. very strong words to describe the cooperation he's getting from justice. >> reporter: wolf, he's using words like stonewalling and obstruction to describe what he's getting from the justice department. daryl issa and his investigators say several hundred weapons are out there unaccounted for they fear the casualty list could climb, and they're pressing hard for answers from justice. from one of the lead congressional investigators looking into the atf's fast and furious program, concerns about the justice department's inspector general. republican congressman daryl issa says this about the office tasked with the internal probe into the operation that allowed thousands of weapons purchased illegally to be carried into mexico. how would you describe the cooperation from the justice department right now? >> i'd describe it as stonewa stonewalling. in this case, the ig has compromised sensitive material that we gained through discovery by making sure it got to one of the objects of our investigation. >> reporter: issa head of the house oversight and government reform committee, has sent a letter to the acting inspector general at justice, issa wants to know why her office prematurely gave audiotapes critical to the investigation over to a person who was a target of the probe, someone who ice say says works at office in arizona. >> giving someone a recording so they would prepare before they testify with juice in his letter, the disclosure undermines our ability to access the candor of witnesses in our investigation and thus obstructs it. contacted by cnn the justice inspector general's office would only say it's served issa's letter is and reviewing. the issa says the inspector general indicated to him she turned the tape over to assist the person in the discovery process. a program designed to take down big weapons trafficking operations but atf whistle-blowers say, in the process, they were forced to watch as up to 2,000 guns were allowed to be take noon mexico. some wound up in the hands of drug cartels and two weapons linked to the program were found near the scene where border patrol agent brian terry was murdered last december. atf personnel based in mexico testified before the committee. >> atf agents were following known gun traffickers away and letting them go. that is insane. >> reporter: atf officials based in mexico during that fast and furious program last year have said they were never told about it at the time, and a mexican official familiar with the case now tells us the mexican attorney general's office says it was not informed of the program while it was going on. we could get no response from justice department to that. wolf? >> brian, you're also getting some new details that investigators have dug up on one of the alleged buyers of these weapons. >> reporter: that's right. sources on the house oversight and government reform committee tell us one of the so-called straw buyers bought more than 700 guns just on his own, most automatic weapons. they tell us atf tracked these weapons and let them go. the sources tell us the buyer had no source of income, was on food stamps but able to purchase more than 700 guns. >> that's pretty incredible. all right. brian, i know you'll keep digging for us. two american hikers have finally been freed from an iranian prison. lisa sylvester's monitoring that and other stories going on. >> great news, shane bauer and josh fattal safe on the ground. they landed hours after leaving an iranian prison, where they were held for 26 months. the pair is expected to spend a couple of days in oman before heading home. iran released hikers on a $500,000 bail each, after their sentences were commuted. and sad news today for rock fans out there after more than 30 years together, the band r.e.m. is calling it quits. the group posted a message to fans on their website saying, quote, they walk away with a great sense of gratitude and of astonishment that all they have accomplished. take a listen. ♪ ♪ >> well, if you know what that song is, it's "world leader pretend" and here's factoid also. r.e. me inducted into the rock 'n' roll hall of fame in 2007. wolf? >> great group, indeed. lots of great songs. well appreciated by a lot. too bad they broke up. we'll stay on top of that as well. jack cafferty wants to know how are economic fears changing your life? jack's back with your e-mail. 1 . today i own 165 wendy's restaurants. and i get my financing from ge capital. but i also get stuff that goes way beyond banking. we not only lend people money, we help them save it. 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[ male announcer ] with dell global services, jim's i.t. needs are supported in over 100 countries. so his company sees results. and jim sees his family. dell. the power to do more. let's get right back to jack for the cafferty file. jack? >> the question this hour is how are economic fears changing your life? mark writes, "makes me sad in a country as great as ours, we have to worry about the skyrocketing price of food, gasoline, medicine, and other essentials. i'm a little bit scared, to tell you the truth, and i've never felt that way in my life. i fear for the young people in the country, like my daughter, who's in college and just starting her life. what a mess we have left for her and future generations." noe in nevada writes "i deal blackjack in nevada. times are horrible. when the economy is good, we have customers that tip the dealers. if you don't know, blackjack dealers live off their tips. we have very little business and the customers we do have hardly tip us anymore." robert in north carolina writes, "i haven't made a major purchase in quite a while. my old truck needs to go to the junkyard, but i'm keeping it on life-support. when i'm not trying to save money, i am pleading with my children to be more frugal. my greatest joy in life, eating off the dollar the menu." david in virginia writes, "if i lose my job, i'd lose my home and health insurance too, so it's not like saving ten cents on store brand green beans instead of the real ones is going to make a lot of difference. the middle class isn't facing incremental impoverishment. either you're doing fine or are hit with bad luck and in that case, you're screwed." angus writes, "i am taking early retirement, selling everything, and moving to an undisclosed location to bury my precious metals under my stash of ammunition and c-rations. not out of fear, but in anticipation of a chaotic economic disaster." robert says, "i've stopped spending money on new things, i buy almost everything used, i stay home a lot more to save on gasoline, and i try to avoid foreign-made product." tom in new york, "if the economy wasn't so bad, i'd be able to get out of this horrible marriage i'm in." if you want to read more, situation room post -- that i said backwards. i'm tired, wolf. good night. >> all right. go home. see you tomorrow, jack. thank you. up next, tsa agents search after this woman to search one more thing, her hair. jeanne moos will have her story. >> please, don't do this to me. . . copd includes chronic bronchitis and emphysema. spiriva helps control my copd symptoms... ...by keeping my airways open... ...a full 24 hours. plus, it reduces copd flare-ups. spiriva is the only once-daily inhaled copd maintenance treatment that does both. and it's steroid-free. spiriva does not replace fast-acting inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva. discuss all medicines you take, even eye drops. stop taking spiriva and call your doctor right away if your breathing suddenly worsens,... ...your throat or tongue swells, you get hives, vision changes or eye pain,... ...or problems passing urine. other side effects include dry mouth and constipation. nothing can reverse copd. spiriva helps me breathe better. breathing with copd is no small thing. ask your doctor about spiriva. i know what works differently than many other allergy medications. omnaris. omnaris, to the nose. did you know nasal symptoms like congestion can be caused by allergic inflammation? omnaris relieves your symptoms by fighting inflammation. side effects may include headache, nose bleed, and sore throat. got allergy symptoms out of my way. now life's a picnic. [ man ] omnaris. ask your doctor. battling nasal allergy symptoms? omnaris combats the cause. get omnaris for only $11 at omnaris.com. ♪ hush, little baby ♪ don't you cry ♪ soon the sun ♪ is going to shine ♪ [ male announcer ] toyota presents the prius family. ♪ walk if i want, talk if i want ♪ [ male announcer ] there's the original one... the bigger one... the smaller one... and the one that plugs in. they're all a little different, just like us. i tell you what i can spend. i do my best to make it work. i'm back on the road safely. and i saved you money on brakes. that's personal pricing. we've all been through the airport checkpoint -- security checkpoints. take everything out of your pockets, your bags to go through the scanner. you walk through the metal detector, and then tsa agents check -- your hair. here's cnn's jeanne moos. >> this is the story of a woman trying to fly out of atlanta with her hair in the upright position. prepare for turbulence. >> i saw these people running, talking about, hey, lady, stop, stop! you, you, with the big hair. >> icyst brantley is a dallas hairdresser who counts singer erica bagdew among her clients and specializes in natural hair, so naturally, she's been growing hers for 20 years. >> i said, what's the problem, and she said, we have to check your hair for explosives. i said, you're kidding me. >> reporter: she had already been through security, but when tsa agents said, submit to a hair search or miss your flight, isis submitted. >> she started digging around in my hair, several times, just touching it and digging. and i said, find the explosives. do you see any? >> reporter: now, most folks don't like their hair being touched -- >> oops. >> reporter: -- by strangers. take the undercover brother. >> you mess with the fro, you got to go. >> reporter: isis got so upset, she cried. >> this is humiliating and embarrassing. >> reporter: will you grant, though, that because there's so much of your hair, you actually could be hiding something in it. >> was dolly parton hiding something in her hair? was cher hiding something in her hair? >> reporter: did they search howard stern or snooki? something could definitely fit in snooki's bun. weapons, explosives. i can't even hide my ears under my hair. but at least i fit through the door, unlike o.j. and his oversiz oversized afro. so what does the isis want from the tsa? a public apology. >> reporter: but the tsa says, this passenger left the checkpoint prior to the completion of the screening process and was offered, but refused, private screening. >> that's fabricated. >> reporter: but this isn't, eva's big as a disco ball hair is in the guiness book for biggest afro in the world. we don't know whether her hair has of been searched at the airport, but we doe know she says it makes for the perfect pillow, great for those long distance flights. can you just kind of flounce your hair a little? jeanne moos, cnn, new york. >> thanks, jeanne. i'm wolf blitzer in "the situation room." for our international viewers, "world report" is next. in north america, john

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