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ERIN BURNETT OUTFRONT

Sinkholes Getting More Attention Than Ever; Filner's Popularity Around San Diego Plummets; Fort Hood Shooter Took Troops By Surprise; Two Dead In UPS Cargo Plane Crash In Alabama; Scores Dead In Egypt Clashes; Photo Shows Manning Dressed As Woman

Aired August 14, 2013 - 19:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


ERIN BURNETT, CNN ANCHOR: "OUTFRONT" next, a developing story tonight. What caused a plane to crash in Alabama? The fire is still burning. Did the crash have something to do, though, with what was on board the cargo plane?

At least 278 dead at the moment now dead in Cairo tonight. The Obama administration, though, still says what happened there is not a coup. Are they dead wrong about Egypt?

And the 16-year-old girl abducted by her father's friend gives a surprising interview online. How she says he was able to kill her mother and brother without her knowing.

Let's go "OUTFRONT."

Good evening. I'm Erin Burnett. OUTFRONT tonight, we begin with the developing story. New details at this hour on the UPS cargo plane that crashed near the Birmingham Airport this morning. Now what we know is that the plane broke to pieces, as you can see. It was an inferno. Both pilots on board lost their lives and according to NTSB officials, they have not yet been able to recover the plane's black box because at this hour that wreckage is still burning.

David Mattingly has been at the crash scene today. David, what is the latest on the ground that you know?

DAVID MATTINGLY, CNN NATIONAL CORRESPONDENT: Well, Erin, the people living around this airport have gotten used to living with jet noise. What woke them up this morning is something they will never forget.

(BEGIN VIDEOTAPE)

MATTINGLY (voice-over): The broken and burnt wreckage of the A-300 cargo plane sits in an open field a half mile from a neighborhood. Nearby broken trees and power lines show how close this jet came to killing people in their homes.

BARBARA BENSON, WITNESSED ALABAMA CARGO PLANE CRASH: I am grateful that it did not kill us. That's dangerous. I mean, it was just like the plane was like this and we were in the middle.

MATTINGLY: Pieces of the plane litter Barbara Benson's yard, the last seconds of what had been an uneventful flight. The UPS plane was out of Louisville, Kentucky, flying over rooftops as it approached the Birmingham airport before dawn, people say they awoke to what sounded like a flight in trouble.

SHARON WILSON, WITNESSED ALABAMA CARGO PLANE CRASH: It was low and then it sounded like it was sputtering like it was out of fuel.

MATTINGLY: Seconds later fire and explosions.

UNIDENTIFIED MALE: I heard three booms. I heard like boom, boom, boom.

MATTINGLY: Federal crash investigators are only beginning to find answers, a mystery compounded by an absence of critical communication.

(END VIDEOTAPE)

MATTINGLY: And something really unusual here that the missing communication was actually from the pilots. They confirm today the NTSB investigators in their press conference just a short time ago say that the pilots made no contact with the tower in Birmingham to tell them, Erin, that they were in trouble.

BURNETT: Just interesting given what those eyewitnesses are saying. It sounded to them that there was trouble. Now, David, you know, when you hear about a cargo crash, you know, I'm thinking recently there have seemed to be quite a few of those, right?

MATTINGLY: That's right, very high profile. We had very disturbing video that you have probably seen in the past. Suddenly shifts on takeoff. There are two other crashes 2010 and 2011 in other parts of the world. Those were attributed it's believed to a problem. It can start a fire. When investigators start looking at every little piece they are going to be paying very close attention to what this plane was carrying.

BURNETT: All right, David Mattingly, thank you very much, reporting live from Birmingham tonight as we try to get more information on what caused that horrific crash.

Now our second story, OUTFRONT, spiraling out of control in Cairo. State TV in Egypt reporting at least 278 people killed today in battles between supporters of the military government and the ousted President Mohamed Morsy.

OUTFRONT tonight, the former assistant secretary of state, P.J. Crowley in Washington. PJ, great to have you on. Let me start by asking this. This all comes -- it has been a month here, over a month of fighting and battles, people losing their lives. The former president being jailed, many of his supporters being jailed and yet, the Obama administration has avoided calling this a coup. Doing this would mean $1.3 billion in American aid go away. Over the past three decades, Israel and Egypt have been the top two recipients of that aid. That, of course, U.S. government says would hurt national security to end that aid. Does that add up?

P.J. CROWLEY, FORMER ASSISTANT SECRETARY OF STATE: I think the decision to avoid calling it a coup and trigger a suspension of the aid was based on a presumption that you gain more leverage by maintaining the relationship with the Egyptian military. It is the most influential and stable element of Egyptian society, that we would be able to use that leverage to help Egypt on a path. Obviously the events of today coupled with other violence that we have seen over the past few weeks makes it much more difficult. I would say much more unlikely that anytime soon you are going to see a restoration of conditions that can lead in the direction of the United States.

BURNETT: You have seen people say it gives America leverage, but leverage to do what, calling the government to move back to democratic has not happened. Obviously the U.S. said that they wanted to continue aid because it would increase stability in the Middle East, but aid has gone into Egypt as we know for three decades and obviously the region is far from stable. John McCain was in Cairo and he said what he thinks it is. He was very direct about it. Let me play it for you and get your reaction.

(BEGIN VIDEO CLIP)

SENATOR JOHN MCCAIN (R), ARIZONA: If it walks like a duck and quacks like a duck it is a duck.

(END VIDEO CLIP)

BURNETT: He is talking about a coup. Is it time for the Obama administration to say this is it, we draw the line, enough, guys?

CROWLEY: Well, I think John Kerry said the right thing. The violence today is deplorable and is a setback in terms of where Egypt needs to go. I think under the surface there has to be serious review of where we are and the policy that we have because it is not sustainable and not necessarily related to events on the ground. I think it is time to call it a coup. I think it was time six weeks ago.

Suspend military assistance so the military is invested in the process of rewriting the constitution, setting the parliament and electing a new president. I am hard pressed at this point because there have been two serious incidents of violence largely responsibility of the military on top of what was a coup so precisely what does the Egyptian military have to do to put military aid in jeopardy? I think it is time for the Obama administration to review where we are.

BURNETT: All right, well, PJ, thank you very much. You heard PJ Crowley saying it is time to call it a coup in Cairo and time to suspend U.S. aid.

Still OUTFRONT, Bradley Manning speaks for the first time in more than two months. The government has released a photo of Bradley Manning dressed as a woman.

Then the San Diego mayor under fire accused of sexual harassment. So when Hooters turns against, is it all over?

Plus Facebook planning a new exciting feature that you will most likely not be able to take part in. And later tonight's shout out, a step closer to you being able to go into space. There is an optimistic end to the tease.

(COMMERCIAL BREAK)

BURNETT: Our third story, OUTFRONT, Bradley Manning dressed as a woman. Take a look at this. This is Bradley Manning. It was released to the public today. It shows the former army analyst in a blond wig and makeup. It was the defense which used this picture. Manning e-mailed it to a superior to argue that he was mentally unstable when he leaked more than 700,000 classified documents to Wikileaks. Manning was convicted of espionage last month. He could get 90 years in jail.

Chris Lawrence was in the courtroom today. Let me ask you, the defense going to great lengths to reduce Bradley Manning's sentence. What were they trying to accomplish by releasing that picture of Bradley Manning in drag?

CHRIS LAWRENCE, CNN PENTAGON CORRESPONDENT: They are trying to show the judge that Bradley Manning was a very confused and misunderstood, troubled young man who was looking for help and could not get it from the army. That picture that you saw was actually part of an e-mail that Bradley Manning sent to his master sergeant while he was deployed in Iraq. That master sergeant never passed up the e-mail or picture because he was afraid the picture might get circulated among the unit and Bradley Manning would be humiliated.

In retrospect, officers had to admit that not doing so was a huge mistake because if they had seen the lengths to which can Bradley Manning had gender identity issues he should have been taken out of the area where he had access to all of that classified material.

BURNETT: It is ironic that the person he sent it to didn't do anything with it trying to protect him when it might have protected him to share it. Manning spoke today in court for the first time. What did he say?

LAWRENCE: He was emotional. He got a bit choked up. His family was there. They also spoke on his behalf. He basically started off by saying I'm sorry. He said I'm sorry for the people I hurt. I'm sorry for hurting the United States. He went on to say I understood what I was doing in the decisions I made, however, I did not fully appreciate the broader affects of my actions. When I made these decisions I thought I was going to help people, not hurt people. Bradley manning knows he is going to spend a long time in prison.

But remember he is still in his mid 20s. Getting 20 years in prison is a big difference from getting 60. And that is what the defense is trying to do, convince the judge that there are mitigating circumstances bringing his family out to try to humanize him, show his tough upbringing in order to get the judge to come up with a number on the small side, not on the high side of that 90 years.

BURNETT: Chris Lawrence, thank you very much. Pretty fascinating. Now our fourth story, OUTFRONT, banned from Hooters. The San Diego Mayor Bob Filner who is accused of sexual harassment by more than a dozen women is now being refused service from all four San Diego Hooters locations. Last night, our Kyung Lah was the first to see and report the ban from Hooters. Tonight the story is even bigger. Kyung is OUTFRONT again.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: Man, what's going on in our city? I abuse women. Hard to say.

KYUNG LAH, CNN CORRESPONDENT (voice-over): You have to laugh, but only the chuckles of Mike Slater's radio show you hear the rage.

UNIDENTIFIED MALE: We are saying you can't rule over us. Please resign.

UNIDENTIFIED MALE: It is a giant joke. That's all it is. This guy needs to go.

UNIDENTIFIED MALE: Who changed the locks? I'm not allowed in Hooters.

LAH: Not allowed because of this, a sign posted in front of all four San Diego area Hooters restaurants that reads "The mayor will not be served in this establishment. We believe women should be treated with respect." For a chain that capitalizes on their young waitresses' physical assets.

(on camera): The irony with hooters is a little thick.

SLATER: It's - it's - like I said, I think it is very poetic.

LAH: Slater is pleased because he and fellow conservative radio host Glenn Beck cooked up the flier and urged businesses in San Diego to print and post it.

SLATER: People don't realize across the country this isn't a sex scandal. This is a lust for power. He has an absolute lust for power. That is why he's not resigning and he won't let go of that on his own. So we have to drag him out of the castle.

LAH: One way for a city to fight Filner. He won't resign. But no one can find Filner, a Democrat, who was away on personal leave and has not been seen in the public for 21 days. The city charter says they can't get rid of the mayor without a recall, and expensive process that could take months. There are also legal routes, but they could take just as long.

JERRY SANDERS, PRESIDENT, SAN DIEGO CHAMBER OF COMMERCE: Business is paralyzed. The city is paralyzed. Things just aren't moving forward.

LAH: Jerry Sanders, San Diego's former mayor, a Republican and now head of the chamber of commerce. He says companies are already choosing to take business elsewhere instead of San Diego. Tourism funds are frozen. Jobs will be lost, said Sanders, if Filner continues to hold the city hostage.

SANDERS: You always have to put the city first, the communities first, the people first. To have someone in office who doesn't think about that in the least is an embarrassment to the city.

(END VIDEOTAPE)

LAH: And that sign that says you're not welcome, Mayor, well it is not just at the Hooters. It is at a number of businesses. In fact, we drove by one here in downtown San Diego. Again, they're just popping up. And Erin, we did call the mayor's office as well as his attorney. They still did not call us back.

BURNETT: Kyung Lah, thank you very much.

And now tonight's Money and Power: Facebook celebrity appeal. Apparently, Facebook is testing a feature to make it easier for celebrities to use the social network. We're not exactly sure how that works, but anyway, it is reported by all things (INAUDIBLE) that the new mobile tool is being tested by a small group of celebrities that make it easier for them to monitor what is going on on their Facebook pages and respond to what people are saying about them. It will help Facebook compete with Twitter, which celebrities have embraced as a way to communicate with their fans.

But let's be honest. Exactly how this works may be a mystery and it probably won't really be the celebrities using it. It will more than likely their handlers who will get stuck with updating their Facebook pages anyway. Better just to avoid a Facebook page altogether.

Still to come, in the trial of Nidal Hasan, we are learning tonight just what happened the afternoon he opened fire and allegedly killed 13 people. We have a special report tonight, a moment-by-moment account of what happened that day.

And then Hannah Anderson describes her ordeal, held captive with her father's friend. We have excerpts from that interview next.

And what happens after the cameras leave? Sinkholes don't just go away. Or do they?

(COMMERCIAL BREAK)

BURNETT: Our fifth story OUTFRONT: sinkhole nightmare. So, just his week, guests and staff at an Orlando area resort near Disneyworld were sent running to safer ground after a sinkhole swallowed an entire building and part of another. That left a nearly 120-foot gaping hole in the earth.

But here is the question: what is going to happen to that giant sinkhole? We took a look at the most notorious sinkholes around the United States and what they look like now. John Zarrella is OUTFRONT.

(BEGIN VIDEOTAPE)

JOHN ZARRELLA, CNN CORRESPONDENT: Smack dab in the middle of town, a perfect spot for a park with shade trees and a grassy pond. If only city planners here in Winter Park, Florida had come up with the idea themselves. Instead it was Mother Nature's idea.

On May 1, 1981 the ground opened up, 75 feet deep, 350 feet across, swallowing some of a car dealership, five Porsches and parts of a swimming pool and two streets. It is still considered the grand daddy of all sinkholes. And like most cases, it was impossible to rebuild over the hole in the earth.

ROBERT BRINKMAN, GEOLOGY PROFESSOR, HOFSTRA UNIVERSITY: If you look at the landscape in Florida overall, it is full of beautiful lakes and most of those lakes are sinkhole lakes.

ZARRELLA: In the town of Sefner near Tampa --

JEREMY BUSH, TRIED TO SAVE BROTHER FROM SINKHOLE: I couldn't get him out. I tried so hard. I tried everything I could.

ZARRELLA: The only person known to have been killed in Florida by a sinkhole is swallowed up as he was asleep in bed. Today it is an empty lot. The house is gone and there are no plans to rebuild. Even if you don't live in Florida, you are not completely out of the sinkhole woods. Over the years, the ground has opened up in North Carolina and swallowed cars in Illinois.

BRINKMAN: Sinkholes occur regularly in places like Texas, New Mexico, Pennsylvania, Kentucky, Tennessee. A wide variety of places around the world as well.

ZARRELLA: Look at this scene in Toledo, Ohio from earlier this year. The driver was stuck in her car underground until the fire department finally rescued her. Today, that spot has been paved over as if nothing ever happened. But it is Florida's natural geology, its Swiss cheese-like limestone bedrock that's made the state the most sinkhole- prone in the nation. Just this year alone, this week's collapse at a timeshare resort near Orlando. And not far north in Wikiwachi.

UNIDENTIFIED MALE: I came over and as I was walking out here, I stepped right here and my foot went down in the hole.

ZARRELLA: While it may seem there is a sudden rash of sinkholes particularly in Florida, Brinkman says it has more to do with geography than geology. As the population grows, the more land you develop, the more likely you're sitting on a sinkhole.

For OUTFRONT, John Zarrella, CNN, Miami.

BURNETT: Sitting on a sinkhole. Still to come, what happened on the afternoon that 13 soldiers were shot and murdered by one of their own? Tonight, a moment by moment account, the first from the trial of the Major Nidal Hasan trial.

Then, how did Hannah Anderson not know her mother and her brother had been murdered by her captor. She answered that question herself, her own words. And that's next.

And how much does it cost to raise a child? We actually have the exact shocking dollar amount tonight.

Plus, the photos that led to this.

(BEGIN AUDIO CLIP)

TIM ARMSTRONG: Abel, put that camera down. Abel, you are fired. Out.

(END AUDIO CLIP)

BURNETT: And the Shoutout tonight: reusable rockets. So, you have seen clips of rockets taking off, right? This one, codenamed Grasshopper, flies 800 feet into the air. It then moves 300 feet sideways before it does this: comes back down and touches down. So, currently rockets burn out as they go into space. So, reusable ones like this would be a lot cheaper. It's pretty incredible. Can you imagine, it goes up and actually comes back down (AUDIO GAP). Hyperloop this week, and it is his company, Spaceex, that has developed this reusable rocket.

(COMMERCIAL BREAK)

BURNETT: Welcome back to the second half of OUTFRONT, where we start with stories where we focus on reporting from the front lines.

I want to begin with some late-breaking news from Cisco. The biggest maker of networking equipment for the Web, tonight the company says it is laying off 4,000 employees. That's five percent of the workforce. Sales came in well short of expectations. It's a global economic bellwether, and shares of Cisco are plunging tonight, falling as much as 10 percent after the stock market closed. The CEO of the company, John Chamber, said that Cisco, quote, "isn't growing as fast as we need."

OUTFRONT has learned prosecutors have offered Kaitlyn Hunt a new pretrial plea deal. You may remember her. She was an 18-year-old Florida teenager charged with having sex with a 14-year-old girl. The deal still includes a felony charge but means Hunt would serve no jail time and would not have to register as a sex offender. By all accounts, of course, this was a consensual relationship. The state attorney tells our Sara Ganim that Hunt's attorney has turned it down, but it is not clear as to whether Hunt herself has formally declined the deal. Her family and she are not commenting.

Well, an OUTFRONT update on the AOL employee who was fired for taking a picture of the CEO Tim Armstrong during this conference call.

(BEGIN AUDIO CLIP)

TIM ARMSTRONG, AOL CEO: Abel, put that camera down right now. Abel, you are fired, out.

(END VIDEO CLIP)

BURNETT: We have the pictures that cost the employee Abel Lenz his job. I mean, it's not like anybody was naked or anything. Can't say these pictures were worth it. Armstrong has since told employees in the memo that he's sorry, not for firing Lenz. By the way, that hasn't changed, but sorry for firing him in such a public way, writing, quote, "It was an emotional response at the start of a difficult discussion dealing with many people's careers and livelihood."

Well, the parents of a 2 year old in Texas are in shock. They discovered that a hacker had been watching and abusing their child via baby cam. It seems the hacker gained control of a camera that connects to the Web. When the parents entered the room, the camera swiveled to face them and the hacker started yelling all sorts of expletives at them.

Daniel Crowley of Security Trust tells it's actually shockingly easy to hack into devices in the home. He tried for example. It only took him between one to three hours to find flaws in several devices including remote control door locks. A lot of people have them. Apparently, they don't require a username or password. It means your door is not locked, people.

It has been 739 days since the U.S. lost its top credit rating. What are we doing to get it back?

Well, stocks fell today but the company everybody was watching closely was Apple. It rose above $500 a share for the first time since January. This is the day after billionaire investor Carl Icahn tweeted he is taking a large position in the company. I wonder how much money he made off of that tweet.

And now our sixth story OUTFRONT: new details tonight on exactly what happened on the day of the Fort Hood massacre. Dozens of witnesses have now taken the stand in the trial of Nidal Hasan. As, you know, he's admitted to killing 13 people and wounding 32 more in a shooting rampage in 2009. It has taken a hell of a long time to get this to trial. From their testimonies, we're now able to give you an unprecedented account, though, of what actually happened that day for the first time.

Ed Lavandera has this exclusive OUTFRONT investigation.

(BEGIN VIDEOTAPE)

ED LAVANDERA, CNN CORRESPONDENT (voice-over): Since 9/11, Major Nidal Hasan wanted out of the Army. In early 2009, according to investors he started plotting a violent escape. On his computers inside his Killeen, Texas, apartment, officials found Hasan was researching terrorist killings, how to plot jihadist attacks and other extremist literature. Three months before the killing, the radicalized army psychiatrist started buying his weapons and ammunition from this gun store.

On the morning of November 5th, 2009, Hasan started the day at 6:00 a.m. with morning prayers at this mosque.

(on camera): Hasan's behavior that morning was strange. Witnesses say he insisted on leading the morning Muslim call to prayer, even though someone else had already been called on to do it. And at the end, he said good bye to his fellow worshipers and told them he was going home. And as he started walking out he shook hands with a friend and told them he was going on a journey.

(voice-over): At 6:30 in the morning, Hasan walked into this convenience store, a routine a visit to buy coffee and hash browns. The store owner said he looked cool and calm. Hasan who learned he would be deployed to the Afghanistan war zone was about to make sure that didn't happen.

Later that morning, Hasan returned home to this apartment complex and started shredding personal documents.

(on camera): Hasan then dressed himself in his U.S. Army fatigues, packed up weapons and more than 400 rounds of ammunition and then made the short drive to Fort Hood.

(voice-over): It was just after 1:00 when Nidal Hasan walked into the soldier readiness processing center. But nobody knew is that Hasan had the handgun with laser sighted mount in his pocket and 16 magazines. He stuffed paper towels in his pockets so other soldiers couldn't hear the metallic magazines clank together.

Hasan walked into a room filled with soldiers getting final medical approvals, preparing for deployments to Afghanistan and Iraq. According to court testimony, Hasan sat down in a chair, placed both hands on his knees and stared at the ground for a moment and then stood up, yelled "Allahu Akbar" and started firing.

CHRISTOPHER ROYAL, FORT HOOD SHOOTING SURVIVOR: I thought it was a training exercise where, you know, smokes in the air and gun shots going off, but it would be over in a minute. And then when I started seeing all the blood and the people running around I realized that it was not.

LAVANDERA: The smell of gun powder, smoke and blood filled the room. Hasan reloaded magazines quickly firing nearly 150 shots. Hasan targeted unarmed uniform soldiers and tried to avoid civilians. Red and green-colored laser lights from Hasan's gun flashed across the room. One soldier described it like a laser light show.

Some soldiers were killed instantly left sitting their chairs, others scrambled for cover behind cubicles and door ways and under desk, wherever they could.

Michael Cahill, the only civilian killed in the massacre, charged from behind a cubicle throwing a chair at Hasan but it wasn't enough. Hasan shot and killed Cahill on the spot.

Hasan continued, it was chaotic. Soldiers huddled in corners, some played dead on the ground, all waiting to figure out how to escape from the room. Hasan walked out of the back door and kept shooting at soldiers trying to escape. A police officer finally fired the shot that dropped Hasan, leaving him paralyzed from the waist down.

The savage attack had been stopped but the horror of what happened haunts the victims today.

Ed Lavandera, CNN, Fort Hood, Texas. (END VIDEOTAPE)

BURNETT: You just saw Ed's exclusive report there, the reenactment of exactly what happened and when it happened on that horrible day. It's just pretty credible you actually see that reenactment. Please let us know what you think about that. Take to Twitter @ErinBurnett, or @OutFrontCNN.

And now our seventh story OUTFRONT: a cause of death.

And tonight, an Idaho coroner reveals James DiMaggio, the man accused of kidnapping 16-year-old Hannah Anderson was shot at least five times in the head and chest by FBI agents. Five times.

DiMaggio's showdown with police took place in the Ohio wilderness this weekend. We are also now getting a first-hand account of the kidnapping from Hannah Anderson. She's actually been answering personal questions from random people about her six-day ordeal on the social media Web site called Ask.fm.

In one exchange, a user asks, how did you -- how did he separate you from your mom and brother? Hannah replied, he tied them up in the garage.

She was then asked by someone else, how did he keep the fire a secret? She responded, he had it set where it would catch on fire at a certain time.

OUTFRONT tonight, Dr. Jeff Gardere, a clinical psychologist.

Dr. Gardere, good to talk to you. I mean, Hannah seems to be very open about this ordeal. I want to mention that Web site specifically, because obviously, it's one that the vast majority of people are not familiar with. She is taking questions from people that she doesn't know around the world.

She was also asked why she didn't run. She responded, he would have killed me.

What do you make of what she is saying and how open she is being to people she doesn't know about this ordeal?

DR. JEFF GARDERE, CLINICAL PSYCHOLOGIST: Well, I think this is a very dangerous thing that she's involved in. Yes, I understand, that is a young person. She is trying to get back into a routine, getting into social networking and using this as a support. But I would caution her that you have to be careful because this has fraught with dangers.

You have people that may ask questions that you're not ready to answer, that may be re-traumatizing you with information that you're now giving, that you haven't really processed this yet and she is in shock right now. There's no two ways about that.

So I don't think she is ready for this.

BURNETT: And she is a child. I mean, you know, she is still -- I mean, obviously, at 16, you don't feel that way but she is. Some of the questions and answers to your point, she was asked, did he rape you? She replied, I'm not allowed to talk about it so don't ask questions about it. Thank you.

Polite, firm. But what do you make of that? I mean, that's a horrific question. People may have it, but is it one she wants to be answering?

GARDERE: Well, that's the thing. She is not ready for that right now.

Look, I admire the fact that she has the strength to go out there and do this, and try to get back into normal life. But whomever may be advising her, they need to tell her that there may be wild cards out there, people trying to manipulate you on this social network, people asking you questions that may really debase you and set you back in what your journey to wellness has to be, after something so horrific.

BURNETT: Let me try to understand because one of the men who spotted Hannah and DiMaggio in Idaho had actually talked about what he said when he spotted them and he spotted her specifically. I want to play what he said about her quickly here. Here he is.

(BEGIN VIDEO CLIP)

MARK JOHN, SPOTTED HANNAH ANDERSON IN IDAHO: It looks like we are all in trouble now or we're in real trouble now, and then we road on out.

(END VIDEO CLIP)

BURNETT: Obviously that seems to give a different picture of what happened. This is a girl under an incredible amount of stress and duress. Obviously, these stories don't all match. I mean, in her own mind is she ever going to be able to come to terms with what happened?

GARDERE: Well, that's the issue isn't it, that she is so young. This is a jumble in her mind. Look, we know that she is 100 percent the victim here. But she is probably feeling some guilt in that perhaps she feels there are some things that she could have said earlier. She has said that before. And in order for her to be able to work with that guilt and understand it is not her fault, it will take time. It will take a trained professional to get her to process a lot of these things.

BURNETT: But she says, I will never forgive myself for not trying harder to save them.

GARDERE: Absolutely.

BURNETT: I mean, of course, she's going to feel it. I mean, that is not something that is going to just go away.

GARDERE: Well, let's not forget that this individual probably not only manipulated her physically but emotionally, psychologically took advantage of a 17 year old. And therefore, those are the issues she needs to address, too. BURNETT: Dr. Gardere, thank you very much.

GARDERE: My pleasure.

BURNETT: Well, you know how we love Hump Day around here. But today, we decided to change it up a little bit. We're calling it bump day because we're talking about babies, specifically their cost. They are cute but all of those poops and everything else add up.

A new government study takes a look at the current cost of housing, food, clothing, transportation, diapers, education and health care, and found out how much it takes to raise a child from birth to 18. The number is $217,000. That's about a quarter million dollars and I want to make it clear, people, that does not include college tuition.

And guess what, that's only for people who earn less than $60,000 a year. Families with annual before tax incomes of more than $100,000, so obviously a lot less after taxes, spend over half a million dollars per child.

And speaking of kids, a new JCPenney ad implies that they'll be mocked if they're wearing the wrong clothes. Does the store cross the clothing (ph) line?

Plus, two billionaires in a contest to see who's is bigger.

(COMMERCIAL BREAK)

BURNETT: All right. I want to have a quick check in with Anderson to see what's coming up on "A.C. 360".

Hey, Anderson.

ANDERSON COOPER, CNN ANCHOR: Hey, Erin.

We are following breaking news out of Cairo, Egypt. A bloody battle being fought right now in the streets, hundreds have already been killed. We got a live report from Arwa Damon, who has caught in the middle of the gun battles today.

Also, ahead, a war of words on stop and frisk with very real consequences for law enforcement. How to keep citizens safe without discriminating and alienating a population. We'll put that question to Philadelphia police commissioner Charles Ramsey.

And new information on the death of James DiMaggio, the kidnapper of 16-year-old Hannah Anderson. Details on how he died during the law enforcement take down in the Idaho wilderness. We'll also speak with a therapist for Jaycee Dugard on Hannah Anderson's surprising and controversial social media posts. She's been talking to people over social media.

Those stories and tonight's "Ridiculist" and a lot more at the top of the hour, Erin.

BURNETT: The social media post is fascinating. COOPER: Yes.

BURNETT: All right. Thanks, Anderson. And we'll show you in just a few.

Well, tonight, JCPenney is defending a TV ad that some people say encourages bullying. The outrage is at one scene. It's very quick. I'm going to play it for you.

And in the scene, a mother explains the importance of buying kids new clothes for the new school year.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I have been told stuff can make or break your entire year. I'm not going to pretend to know what cool is.

(END VIDEO CLIP)

BURNETT: That scene of the child sitting alone caused a number of parents to vent their frustrations on JCPenney's Facebook page. One parent writing, "Every day kids are made fun of for what they do or do not have, and your ad has just added one more thing that a child can be bullied about."

So, they have a point or is this just a total overreaction?

OUTFRONT tonight: Dean Obeidallah, Stephanie Miller and host of CNN's "CROSSFIRE" which debuts on September 16th -- hope you'll get a vacation before then -- S.E. Cupp.

All right. Great to see all of you.

Dean, let me start with you. Do these parents have a point?

DEAN OBEIDALLAH, COMEDIAN: First of all, obviously, things have changed. When I was a kid if you wore JCPenney clothes, you got bullied. So, things have changed that dramatically at this point that people think that if you wear this you are cool, or you're going to be popular. I can understand this --

BURNETT: There are a lot of brands at JCPenney, right? I mean, you know --

OBEIDALLAH: Every ad tells you if you buy that product, you are going to be popular, attractive, you'd be successful. We see this all the time, frankly.

And when I was young, I didn't have the coolest clothes. I wanted Puma sneakers, my parents couldn't afford it. I bought the sneakers in the Big Ben (ph). Was I the most popular? No. Was I bullied? No.

Did it make me become a comedian because I need the attention of strangers? Yes, probably. But, still, I wasn't bullied for wearing crappy clothes. BURNETT: In which case, it's the best thing that ever happened to you.

OBEIDALLAH: It is.

S.E. CUPP, HOST, "CROSSFIRE": You know, all advertisers, Dean is right, all advertisers try to pressure consumers into buying their product. Apple is great at trying to make you feel very uncool for not having their product.

But they're a lot more subtle than this. And usually, they don't target kids. Having been bullied as a kid I know how terrible it feels to sit alone at a cafeteria table. I have been there.

And so, now, to have JCPenney sort of joined in the act, bullying parents into buying their clothes and bullying kids who might see the commercial into telling their parents buy me cool clothes, I think it's a real misstep.

BURNETT: Tasteless.

Stephanie, what do you think? I was thinking when I saw this today and I heard about it, I was remembering and I'm not going to use names because I'm sure these mean girls grew up to be very nice, but I was remembering incidents of, Erin, where did you buy that and you're trying to lie because I knew I didn't have the cool brands and then being called out for it and being totally ostracized.

CUPP: Oh, name names. Name names.

BURNETT: Kids can be really, really mean to kids about clothes. When you are a kid and the fact that I still remember it, it's not a small thing.

STEPHANIE MILLER, RADIO HOST: Erin, I still remember the agony of the day my mother let my Catholic school uniform down like ten inches without telling me. It was humiliation for weeks. So, I agree that this is just -- you know, first of all, it's classes for people that can't afford maybe new clothes all the time.

And, secondly, that poor kid at the lunch table was like lord of the flies. Does he get killed with a rock next for not having the right clothes? It's just -- I think it is really stressful for kids enough at school.

BURNETT: Let me play a scene, Dean, for you, since you're now the one -

OBEIDALLAH: OK.

BURNETT: Now, you got bullied, so I know you're saying, you know, we all went --

(CROSSTALK)

OBEIDALLAH: Unbelievable. BURNETT: I'm ganging up on you two here. But let me play a scene from "The Mean Girls". Not "The Mean Girls" that I know, but "The Mean Girls" movie.

OBEIDALLAH: OK.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Gina, you're wearing sweat pants. It's Monday.

UNIDENTIFIED FEMALE: So?

UNIDENTIFIED FEMALE: So, that's against the rules and you can't sit with us.

UNIDENTIFIED FEMALE: Whatever. Those rules aren't real.

UNIDENTIFIED FEMALE: They were real that day I wore a vest.

UNIDENTIFIED FEMALE: Because that vest was disgusting.

UNIDENTIFIED FEMALE: You can't sit with us.

(END VIDEO CLIP)

OBEIDALLAH: First of all, I want to point out --

CUPP: Explain that Dean.

OBEIDALLAH: First of all, I want to point out, first of all that movie, just so you guys know, that's not a documentary. It's a scripted comedy movie written by funny and it does resonate truthfully. I'll be honest.

Kids bully each other. Statistics show that 90 percent of kids between fourth and eighth grade do suffer some form of bullying in their childhood. I suffered it, too, for all different reasons. Kids are horrible. They are horrible.

BURNETT: Kids are nasty the other kids, they can be.

OBEIDALLAH: I cannot believe buying JCPenney, Arizona Jeans or some other clothes, the Jaclyn Smith collection from Kmart, it's going to make you bullied by people.

CUPP: It's a fact of childhood, but I feel like today, it's so tough because teachers and administrators are hamstrung about how they can discipline kids in public schools now. Parents I think have become complacent in defending bad behavior.

And so, for advocates against bullying, now they have one more thing to go against, add to that social media, it's almost impossible to survive as a child these days.

OBEIDALLAH: I'm against bullying, just so it's clear.

BURNETT: I would bet, Stephanie --

(CROSSTALK)

MILLER: Erin, Erin --

BURNETT: Those who bully don't end up doing well.

CUPP: Sometimes they don't end up doing well.

MILLER: Erin, here is what I take from all this.

BURNETT: Yes.

MILLER: I would get on Facebook tonight if I were you, and I would say, hey, guess what bullies, that said about the mean what I was wearing, I have a show on CNN and you don't. That's just me.

(LAUGHTER)

MILLER: That's just me.

OBEIDALLAH: That's what I would do.

BURNETT: You know what's so funny, I even remember the brand. I mean, that's the thing, that's the point. It's memorable.

Dean, from a pure perspective, it's just not smart from JCPenney.

OBEIDALLAH: I think you're hitting it on the head more than I've ever seen. Like you're not going to have friends and to me it's ridiculous. But every product, Mercedes Benz, Porsche, they want to sell this great, I can't afford them. Do I feel less good about myself? Will people ostracize me for not owning those cars --

BURNETT: They've never run an ad of you sitting alone on the curb, which they did with the kid because, yes, it does happen --

CUPP: We should discuss the fact JCPenney is reporting tough losses in the earnings for a few years now and it seems like this is a desperate attempt for them to seem cool again and I don't think it works.

OBEIDALLAH: They lost over for $3.5 billion last year alone.

BURNETT: They are hemorrhaging.

OBEIDALLAH: Yes.

BURNETT: All right. Thanks to all three of you.

Please let us know what you think on Twitter. Were you bullied? And for what brand, by the way? I think I remember the brand of the bathing suit, it was a spree, it was not the brand that they wanted it to be.

Every night, we take a look outside the day's top stories for something we call the OUTFRONT "Outtake." Every generation of billionaire has a different favorite toy, right, speaking of kids who bully. Over the years, we have seen the richest of the rich compete over cars, horses planes and real estate, but now, it's all about boats because apparently, if you want to be the biggest and baddest guy, you need to have the biggest and baddest boat.

Over the past three years, that guy has been Roman Abramovich. The Russian billionaire and Chelsea football club owner is the proud owner of the Eclipse, a 535-foot super yacht with 24 guest cabins, two swimming pools, a disco, two helicopter pads, an a missile defense system, which, by the way, it's been in New York harbor for awhile. I've been over there to look at it. They had to turn that part off when they came into the United States apparently.

Seventy crew members are required to operate the Eclipse and it's docked here in New York City and it is pretty amazing. And yet, it does not measure up anymore. Sorry, Roman, you are just old news, because the ruler of the United Arab Emirates, and the small city of Abu Dhabi, which sits on 10 percent of the world's oil, hence the revenue for the boat, has a bigger boat.

Sheikh Khalifa bin Zayed bin Sultan al-Nayan has recently taken possession of Azzam, a 591-foot super yacht, so big that few ports and the planet can accommodate it. It's reported to have cost half a billion dollars to build. It has a 6,000 square foot salon. I could imagine that could be used for all sorts of things.

With the top speed of 31 knots, it's been called the most complex and challenging yacht ever built. Built by the way in Germany, most important, it eclipses Abramovich's yacht, which (INAUDIBLE) the sheikh Abu Dhabi is the new champ.

Still to come, the rock star Barack Obama announcing his next tour.

(COMMERCIAL BREAK)

BURNETT: A lot of Americans have criticized Congress for taking a five-week vacation with a full government shut down looming. Sort of it seems like Washington doesn't care. At least the president is only taking a week off and he's actually preparing for something big. He's about to go on tour.

Next week, President Obama will fire up the tour bus, and hit the road for a two-day tour which will crisscross New York and Pennsylvania. The goal was to convince Congress to support his proposals for boosting the U.S. economy. Now, they're on vacation, so they might not hear it, but we don't know yet which cities they're going to be selected. The president, though, has already hinted at what it will take to avoid the government shut down.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: If Washington will just shake off it's complacency and set aside the kind of slash and burn partisanship that we'd just seen for way too long. If we just make some common sense decisions, our economy will be stronger a year from now. This moment does not require short-term thinking. It does not require having the same old stale debates.

(END VIDEO CLIP)

BURNETT: Slash and burn partisanship and old stale debates. Now, to keep our rock concert theme, the Republicans obviously have refused to have any kind of jam with the Democrats.

We can be critical of the do-nothing Congress and the president on this show, but in this case, the president is right. We're not going to get anything done if our elected officials just keep repeating the same thing over and over and over again.

(BEGIN VIDEO CLIPS)

OBAMA: So, I expect we're going to hear a lot more of that over the next four days, more of the slash and burn say anything, do anything politics.

Slash and burn say anything do anything politic.

Slash and burn politics.

Slash and burn politics.

Slash and burn partisanship.

Slash and burn partisanship.

Slash and burn.

Slash and burn.

Slash and burn.

Slash and burn, take no prisoners, anything goes politics.

(END VIDEO CLIPS)

BURNETT: Look, at least he knows the top song. He plays the hits. But a two-day tour won't change the economy.

I still bet, though, the tickets will sell out fast. President Obama slash and burn, economic recovery tour kicks off on August 22nd in selected cities.

But you know what? At least he'll be working. Congress -- not so much, they will be on vacation for a few more weeks.

"A.C. 360" starts right now.

COOPER: Erin, thanks. Good evening, everyone.