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Dow Soars on Possible Short Term Debt Deal; "Why America Needs a Stock Market Crash"; New Confusion Around Obamacare Sign Ups; Gunmen Seize Libyan Prime Minister at Hotel; Teen: He Made Me Play Russian Roulette; Ariel Castro Found in Cell with Pants Down; Teen Race Car Driver Beats the Odds

Aired October 10, 2013 - 14:30   ET

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


(COMMERCIAL BREAK)

BROOKE BALDWIN, CNN ANCHOR: Check it out over my shoulder here. Stocks are rallying on this Thursday afternoon. We could be close to a temporary deal to raise the debt ceiling for six weeks and as a result, you know, the numbers on Wall Street are reflecting that possible optimism.

Billionaire investor, Warren Buffett predicted economic catastrophe if Congress let our nation default. You have heard from financial leaders warning that the stock market might crash, and if it happens, your 401(k) could take a nose dive, but some economic experts say go ahead, let the stock market tank.

In fact, just to be specific, a medium sized stock crash would actually help the nation, so says my next guest, John Cassidy. He penned this article in the "New Yorker" called "Why America Needs A Stock Market Crash." So John, welcome to you.

Let me just quote you first, just so we put this in perspective for the viewer, you write this. If the market fell by say 300 or 400 points for three days in a row and then lurched down even 1,000 points, the effect would be salutary, beneficial. Once the market started tanking, investors, the banks and the media would besiege Congress for action.

I'm not disagreeing with your final point there, John, but why do we need this crash for that to happen?

JOHN CASSIDY, STAFF WRITER, "THE NEW YORKER": Well, I mean, look what has happened today. We're going to have this supposedly a solution, temporary solution, six weeks increase in the debt limit, which is only going to extend the crisis for six more weeks to Thanksgiving and we're going to be back exactly where we are today. Quite possibly, the government is going to be shut down then.

In my view, what is happening in Washington, people are behaving like, especially the Republicans, are behaving like high school students. We need some adult supervision from outside interventions. I think historically, it's been shown that one of the few things that can concentrate minds in Washington is a connection, a bit of crash on Wall Street. We're not talking about 1987 style meltdown, but it's something like 1,000-point fall or something. I think it would concentrate minds there and might be a better outcome. I mean, the market would come back, remember, if once the problem was solved. It wouldn't stay down forever.

BALDWIN: I understand. I understand what you're saying. At the same time, I liken this to maybe driving along in a car and let's say you're driving a little too fast, pedal to the metal. You don't have your seat belt on and you have this potential for a fatal collision. You have the potential for this fatality and you learn either from someone dying or not, we don't know that, i.e., default, you need to buckle your seat belt. Why do we need to have the potential for a crash?

CASSIDY: Because I think, you know, just look at the last few weeks. Washington can't get its act together. The Republicans in particular think that they can act without any real consequences for the economy or for the markets. And so far, that's been true. The market just looks upon it as so far as a sort of kabuki dance. It's down a couple hundred points but nothing serious.

If it actually did start to crash, the stock market, people in Washington would be besieged by their constituents, by investors, by the big banks, and it would force them to act seriously and do something about it. Remember, if we don't do anything about it and we do get back to a debt ceiling crisis in November and we actually get close to a default, there's a likelihood of a major crash not just a medium, small size crash that I'm talking about.

What I'm saying is taking a hit now. We might well be more preferable than going right up to the brink and risking a major crash, not just in the stock market, but in the bond markets, in the dollar. We really could have a financial meltdown if Washington doesn't get its act together eventually.

BALDWIN: Let's hope not. John Cassidy, it's one perspective. Thank you for joining me.

And in addition to this shutdown and the debt ceiling, we have also all week long been looking into Obamacare enrolment across the country, and today we learned about people, the fact they may have been told that there were problems with their web site passwords. Apparently, that's not totally the case.

Elizabeth Cohen here with the details, the gal I talked about issues getting on and now there are issues with passwords or not?

ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: So you and I are going into, what, day nine of me telling about my problems trying to sign in.

BALDWIN: Tell me more about your problems.

COHEN: I'll tell you all my problems. So I finally got a log in and a password and I went to log in and I can't log in, I can't log in, I can't log in. I call the 800-number that they tell you to call, and they said, you need to reset your password. I said, really, what did I do wrong? They said, no everybody. Everybody has to call in and reset your password. This is the rep on the phone.

I said, really? My goodness, so I hung up and called HHS, the Department of Health and Human Services and I said what's up with this? They said, look, we were going to do an upgrade to the system that would have deleted everyone's passwords. To prepare for it, we wrote a script for the reps, but we sent it to the woman we shouldn't have. So these reps received a script for something that never actually happened.

BALDWIN: So no need to fret.

COHEN: Nobody needs to change their password, not me, not anyone, but I still can't get in. And every time I call, they say, try at a low volume time. I tried at 10:30 last night. I tried at 7:00 this morning.

BALDWIN: You need to set the alarm for the middle of the night.

COHEN: They said late at night, early in the morning.

BALDWIN: I'm sure your husband would love that.

COHEN: We're going to try that. I guess it's the only way to do it. Some people have gotten in. One of my producers got in early in the morning. We heard from a viewer who got in at 2:00 in the morning, so it is happening, but it's tough.

BALDWIN: Keep us posted. Elizabeth, thank you.

A brazen abduction, militia gunmen abducted the prime minister of Libya at a luxury hotel. He's rushed into this convoy of cars and now new concerns about the safety of Americans serving at our embassy there.

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BALDWIN: It has been a long day for Libya's prime minister. He was abducted off his hotel doorstep by militia gunmen earlier today and hours later simply let go. Here is Ali Zeidan speaking after he was freed, seemingly doing fine after his kidnapping ordeal even appeared to downplay his abduction, characterizing it as an internal problem.

We can tell you that Secretary of State John Kerry was briefed on the situation while traveling in Malaysia today. He said he was confident in the security for the U.S. Embassy and personnel in Libya.

Next, her story captivated America. Hannah Anderson kidnapped by the man who killed her mother and brother and now she's revealing new details about his confessions to her and the deadly games of Russian roulette he forced her to play. Hear what else she has to say about her abduction, next.

(COMMERCIAL BREAK) BALDWIN: Handcuffs and bound with zip ties, encouraged to play Russian roulette with a real gun, 16-year-old Hannah Anderson describes her kidnapping back in August in the back country of Idaho by a much older family friend who police say killed her mother and brother and then burned down their house. This thing all started when James DiMaggio picked Hannah up from cheerleading practice. I want you to watch what she told the "Today" show.

(BEGIN VIDEO CLIP)

HANNAH ANDERSON, KIDNAPPING SURVIVOR: When I got into the house, he handcuffed me and zip tied me feet. He told me that he was going to kidnap me and take me to Idaho where my intention was just to carry his backpacks to the river and that he was going to live there and then he would get me home afterwards. After he told me the plan, he made me play Russian roulette with him sitting on the couch.

UNIDENTIFIED FEMALE: With a real gun?

ANDERSON: Yes. And when it was my turn, I started crying. And was like freaking out. And he said, do you want to play? I said, no. And I started crying and then he was like, OK, and he stopped.

(END VIDEO CLIP)

BALDWIN: Also on the "Today" show, Hannah talked about DiMaggio's feelings for her.

(BEGIN VIDEO CLIP)

ANDERSON: He said, it's not that I don't want your friends up here. It's that I don't want to see you kissing your friends or anything like that because I have a crush on you. Not a crush that, like, feeling a crush as in like family. I care about you and it kind of seems like really weird.

UNIDENTIFIED FEMALE: Did you kind of try to keep your distance a little bit more?

ANDERSON: Yes, exactly. And he got upset about that and would always text me and say that I was rude and I was trying to stay out of his life.

(END VIDEO CLIP)

BALDWIN: Psychologist Wendy Walsh joins me now. One other detail we learned is that Hannah said DiMaggio threatened to kill her or anyone who tried to help her if she tried to run. Just what do you make of the new details she's sharing and just her demeanor?

WENDY WALSH, PSYCHOLOGIST: And Brooke, the other important piece, he actually forced her to take sleeping medication and drugged her for the entire trip to Idaho, so she woke up in Idaho. I think that the kind of manipulation he used, the game of Russian roulette, the threats to her family, the drugging her. He was very shrewd in how he was going to control her. I think looking at this interview, Brooke, it's the first time we're starting to see the real Hannah Anderson. A lot of the social media stuff and the funeral footage, I think she was in a kind of disassociated mode, and now we're starting to see some of the grieving.

BALDWIN: It's interesting you say disassociated because that's my next question, right. So we saw her at that funeral, not perhaps grieving maybe as much as one would think. Again, she's this young woman, still all of this is very fresh for her, I imagine, but she's out there, Wendy. She's doing these TV interviews. She is posting these pictures. You mentioned the social media. Is that unusual behavior for a teenager who has been through such a traumatic event?

WALSH: Well, it's not unusual behavior for a teenager nowadays. I myself have a 15 1/2-year-old daughter, and I asked her, my God, if you were having a tough time or something horrible happened to me, would you be online? She said, probably, that's how I get care from my friends, how we reach out to each other, how we talk. As Hannah mentioned in her interview, she had been offline for an entire week. For a teenager, that's a major withdrawal.

BALDWIN: A whole week?

WALSH: A whole week. So she had to check back in and then when she saw the lies about her, remember, this is not somebody who is media savvy and she's a very young person. You and I, Brooke, are used to getting the Twitter hate, OK? The rest of the average person gets on and sees that and wants to address it. They don't know how to ignore the trolls, so that's probably how it happened.

BALDWIN: So what's next? I mean, do you think for a teenager in this kind of position, does she just need to -- I think I try to put myself in someone's position and I can't imagine, but I think I want to go away and be quiet for myself and be with some of my family for as long as I can. Say no to members of the media.

WALSH: Well, her and her father did say in the "Today" show interview they hope this will be the end. This will finally put to rest all the rumors, all the lies about what potentially happened to her. And also, they did not get into a lot of the graphic details, so they protected her in that way. And I think that this is now, they can get on with the proper grieving time they need. They mentioned they are getting help. That word to me tells me they're getting some therapy. That's really important right now.

BALDWIN: That's great. Wendy Walsh, thank you.

WALSH: Thanks, Brooke.

BALDWIN: Coming up next, shocking new information about the death of Ariel Castro. He's the man who abducted the three girls in his Cleveland neighborhood. Remember Castro was found dead in his jail cell? But we have learned today it may not have been suicide. We will tell you about this new report that reveals a lot of information about this man's death. Also, it's video you have to see. A train slams into a tractor trailer, and the whole thing caught on camera.

(COMMERCIAL BREAK)

BALDWIN: This just in, a new report on the death of convicted kidnapper Ariel Castro suggests he may not have died from suicide after all, but rather from autoerotic asphyxiation. Ohio officials have released these new details about what they found in Castro's cell the day he died. So according to this report, he was found hanging from the cell's window by a sheet wrapped around his neck. His pants and underwear were down around his ankles.

And Castro left no suicide note. So all of that led officials to believe he may not have intended to kill himself. Our report also says the two guards responsible for checking in on Ariel Castro apparently falsified a number of posts in a log book. Those officers were put on leave immediately following Castro's death.

And now, to some other stories making news, rapid fire, roll it. In Midland, Texas, a tractor trailer bottoms out on some train tracks and just watch what happened next. There go those pipes. Obliterated, scattered everywhere. Despite the nasty looking crash, we're told no one was hurt.

And this wasn't exactly the thrill ride these folks signed up for. This is the tallest roller coaster at Universal studios and it was stuck just like that. Imagine being stuck 140 feet in the air, trapped. These folks were trapped for two hours. Rescue teams and the fire department were called in. They were able to eventually pluck everyone off that ride. The park says a technical glitch caused a malfunction, the ride now back up and running.

Down it goes, demolition crews taking down the Amelia Earhart Memorial Bridge. This is the Missouri River spans from Kansas to Missouri. The bridge was built in 1938.

Coming up next, we are an hour and a half away from the big meeting with House Republicans at the White House. And I will talk to one of those Republicans getting ready to meet with the president. Will she bring up any demands? We'll ask.

Plus, a dad breaks down and begs for help after his 9-year-old son hops on a plane without a ticket. Where do you go when you can't control your kids? We'll discuss that. Stay right with me.

(COMMERCIAL BREAK)

BALDWIN: Three years ago, teenage race car driver, Ryan Reid, was on top of the world. He was training with NASCAR's top drivers when suddenly his career was threatened by a life changing diagnosis. Dr. Sanjay Gupta introduces us to this young driver in this week's "Human Factor."

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT (voice-over): Against all odds, 20-year-old Ryan Reed is living his dream.

RYAN REED, ROUSH FENWAY DEVELOPMENTAL DRIVER: I've been a race car driver since I was 4 years old.

GUPTA: That's when he won his first go-kart race, and hooked on the thrill of competition, Reed hasn't looked back. He was just 17 when one of NASCAR's top drivers, Kyle Busch, recruited him for his development team.

REED: It was just like everything was falling right into place in my life, and nothing could stop me.

GUPTA: But something did.

REED: I just remember I was really cranky and I remember being this thirty a lot. I was using the bathroom extremely frequently, and losing a lot of weight.

GUPTA: One of the first things his doctors checked, his blood sugar.

REED: Over 300 fasting.

GUPTA: That's about three times the normal level. Reed was diagnosed with Type I diabetes, but even more devastating than the diagnosis.

REED: They're like, Ryan, you'll never race again. You have to focus on a healthy lifestyle.

GUPTA: Disbelief turned to rebellion. Reed found a doctor willing to help him get back on the track. There had been adjustments, a new diet. He carries a special drink in his car that can boost his blood sugar. A wired sensor has been implanted in his abdomen that transmits his blood sugar readings. There's a continuous glucose monitor mounted to the dash inside his race car that allows him to check his blood sugar during the race.

UNIDENTIFIED MALE: How are your numbers right now?

UNIDENTIFIED MALE: Good, 120 still, maintaining.

GUPTA: And his fire suit now sports a bull's eye.

REED: We have a guy who reaches through the window and gives me an insulin injection should I need it.

GUPTA: He's never had to use any of the safeguards, not even a close call. Reed made his debut in NASCAR's second biggest series April 26th and just last month he finished in the top ten. Dr. Sanjay Gupta, CNN, reporting.

(END VIDEOTAPE)

BALDWIN: And here we go. Top of the hour, I'm Brooke Baldwin.

Today, a beacon of hope, a possible end to this stalemate at least when it comes to the country's ability to pay its bills, I'm talking specifically about the debt ceiling and this proposal of an extension, which would push back that looming deadline by six weeks.

(BEGIN VIDEO CLIP)

REPRESENTATIVE JOHN BOEHNER (R), HOUSE SPEAKER: So what we want to do is offer the president today the ability to move. A temporary increase in the debt ceiling in agreement to go to conference on the budget for his willingness to sit down and discuss with us a way forward to reopen the government and to start to deal with America's pressing problems.

(END VIDEO CLIP)

BALDWIN: Now, the president hasn't seen the specifics of this deal yet, but the White House says he seems happy about getting the offer.