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ANDERSON COOPER 360 DEGREES

Drew Peterson Arrested; Shooting Suspect in Custody; Obama Makes $17 Billion in Budget Cuts; Killing Chicago's Kids; Inside a Chicago ER; Miami Priest Removed from Leadership after Compromising Photos Found

Aired May 7, 2009 - 23:00   ET

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


(COMMERCIAL BREAK)

ANDERSON COOPER, CNN ANCHOR: We begin with breaking news in Illinois. Former police sergeant Drew Peterson has been indicted in the murder of his third wife, Kathleen Savio. And he was arrested hours ago during this traffic stop.

Peterson also remains the prime suspect in the disappearance of his fourth wife, Stacy Peterson, who's been missing since October 2007. That's not, though, why he was arrested today. Law enforcement officials held a news conference just before we went on air. Take a look.

(BEGIN VIDEO CLIP)

JAMES GLASGOW, WILL COUNTY STATE'S ATTORNEY: The grand jury that was empanelled to meet on Thursdays to investigate the death of Kathleen Savio in the disappearance of Stacy Peterson returned a two- count bill of indictment today charging two counts of first-degree murder, one on the theory of intentionally killing, the second on knowingly doing an act that could cause great bodily harm.

I appeared before Judge Daniel Rozak this afternoon and requested a bond in the amount of $20 million which Judge Rozak granted without question. This is an extremely grave and serious manner, and I think that's reflected in the bond.

(END VIDEO CLIP)

COOPER: Drew Peterson denies that he harmed either of his last two wives. Today's indictment doesn't end the investigation, but it does mark a major turning point.

Joe Johns has the latest.

(BEGIN VIDEOTAPE)

JOE JOHNS, CNN CORRESPONDENT (voice-over): There's the eccentric behavior, the coy answers.

UNIDENTIFIED MALE: Good. How are you?

JOHNS: And the confrontation.

DREW PETERSON, ACCUSED OF KILLING THIRD WIFE: No response. Talk to my lawyer.

JOHNS: Drew Peterson appeared to savor the attention, even if the subject matter was so disturbing. The former police sergeant has been married four times, but it's the mystery over the last two Mrs. Petersons that have put him in the spotlight.

Kathleen Savio was his third wife. The couple had two children. On March 1st, 2004, just days away from divorce, Savio was found dead in her bathtub. It was originally ruled an accidental drowning but the cause of death was changed to homicide after her body was exhumed. Her sister said Savio feared Peterson would murder her.

SUE DOMAN, KATHLEEN SAVIO'S SISTER: She told me all the time, "He's going to kill me. It's going to look like an accident. Take care of my kids."

JOHNS: In an interview with Larry King, Peterson was asked if he was his third wife's killer.

LARRY KING, HOST, "LARRY KING LIVE": What happened?

PETERSON: Don't know. I don't know. I had neighbors go into the house, and they found her dead in the bathtub.

JOHNS: After Savio died, Peterson married wife number four, Stacy, who has not been heard from since October 28th, 2007. She was supposed to meet a friend early that day but never showed up.

PETERSON: Am I worried about her and her safety? Yes. And I've been from the beginning.

JOHNS: Peterson said Stacy most likely left him for another man, but he also knew he was under suspicion.

PETERSON: I'm a suspect officially. I think I was a suspect from the beginning.

KING: Were you ever physical with her?

PETERSON: Never. And I kind of challenge anybody out there to find anybody that has ever even seen me mad.

KING: So you don't have a temper?

PETERSON: No.

KING: Are you in love with Stacy?

PETERSON: Very much so.

JOHNS: We don't know if Peterson had anything to do with the disappearance of his fourth wife, but a grand jury is still investigating that possibility. The same grand jury that said there was enough evidence to charge him with the murder of Kathleen Savio.

But just last month, Savio's two children told CBS they believe their dad is innocent.

THOMAS PETERSON, SON OF DREW PETERSON: Accidents happen all the time. I highly do not believe that my dad had murdered my mom because first off, he wasn't there. He was with us during that period of time and I don't know what else to say. Like -- I don't believe it.

(END VIDEOTAPE)

COOPER: Drew Peterson is in custody, Joe. He's being held on $20 million bond. What happens next?

JOHNS: Well, his lawyers actually call that bail excessive, by the way. But what happens next is they're going to try, the prosecution will, to take this case to court, of course, to take it to trial, to get a conviction.

Meanwhile, the investigation by the grand jury that already indicted him once continues to look at the Stacy Peterson case. So it could be a long road of hope for this guy, and he's probably going to stay put with that big bond -- Anderson.

COOPER: Joe thanks.

Investigators have been focusing on Peterson as a suspect roughly for 18 months. The pressure and publicity, much of it negative, doesn't seem to have hurt his social life. He has a girlfriend. Her name is Christina Raines.

And she's been living with Peterson in his house. Her father, Ernie Raines, says the couple was planning to marry. He joins me now by phone. Also, "In Session" anchor Lisa Bloom also joins us.

Ernie thanks for being with us. What was your reaction when you heard that Drew Peterson had been arrested?

ERNIE RAINES, FATHER OF PETERSON'S GIRLFRIEND (via telephone): Well, I was so relieved. I was so -- I'm glad justice finally came, before he hurt my daughter.

COOPER: What -- have you talked to your daughter since he's been arrested?

RAINES: Yes. She called me and well, first my little daughter called me who told me about it. And I said, "What?" Then she called me and said the state police had her, too.

And I said, "For what?" And she said they wouldn't tell her. And then they wouldn't let her go in the house to get the baby's clothes or her clothes or anything. And then she called me back and said that they told her to leave and not to go into the house to get the stuff.

COOPER: Is she upset, though?

RAINES: Oh, yes, my daughter was terrified, very emotionally upset. She was crying on the phone. And I tried to tell her from the beginning that this was going to happen. Be prepared.

But just last weekend, I was with her and Drew. And they're talking about getting married, going to Vegas and coming back and have the reception here.

LISA BLOOM, ANCHOR, "IN SESSION:" Ernie, this is Lisa Bloom. Thank you so much for joining us on CNN tonight. Do you know whether Drew Peterson ever got a divorce from Stacy Peterson, or is he still legally married to her?

RAINES: From what he said, when I saw him Saturday, when I brought that up, he said yes. And then my daughter said no. And he goes, well, not yet; at the end of -- at the beginning of June or the beginning of July, somewhere around there.

BLOOM: They were going to marry?

RAINES: Because she was...

BLOOM: Your daughter and Drew were going to marry at that time? Was it your impression that they were going to get married, then, because Drew knew that this arrest was coming? And he wanted Christi to take care of his four children who are still living at home?

RAINES: He wanted somebody to have his kids taken care of. So, that way he set my daughter up.

BLOOM: So, will she be taking care -- Ernie, will she be taking care of Drew's kids now that he's arrested?

RAINES: Yes. If he was to go to jail, he'd set my daughter up for life.

COOPER: Ernie, what does your daughter see in Drew Peterson?

RAINES: Like I was telling Lisa and Dr. Phil, he used everything he can. So, what he did was, he manipulated my daughter with Drew's kids, with Anthony and Laci, little Laci. And my daughter had a heart for the kids, and she fell in love with the kids, too.

And I guess she said she did love Drew, and she couldn't believe that he did it.

COOPER: So, she didn't fear at all for her safety? She didn't believe that he was involved in the death of Kathleen Savio, his third wife, or in the disappearance of Stacy Peterson?

RAINES: No, she didn't. But I kept telling her, I know he did it. And she kept -- I don't know how, dad. I'm telling you, I know he did it. It's going to come out.

COOPER: What's that like for you as a dad when your daughter is getting involved with someone who you clearly believe is guilty of murder?

RAINES: Yes. And I fought tooth and nail to try to stop it several times. But somehow or another, when I wasn't around, Drew just worked his magic and she went right back.

COOPER: Ernie, I appreciate you calling in tonight. I appreciate your time. Thank you very much for being with us. We wish you well in the days ahead.

Joel Brodsky is Drew Peterson's attorney. We've got him on the phone. Let's go to him now.

Joel, when did you first hear that your client had been arrested?

JOEL BRODSKY, DREW PETERSON'S ATTORNEY (via telephone): I was on an airplane heading to New York, pulling out of the gate at O'Hare.

COOPER: Were you aware this was about to happen?

BRODSKY: No, no. We had no idea. We had no idea it was going to happen. It took us by surprise.

COOPER: And you have not been able to talk to your client yet, correct?

BRODSKY: No, no. As a matter of fact, when our plan hit -- we obviously had a plan in place as soon as he was arrested. The first start of that plan was he was supposed to call me immediately.

He never got to call me, assuming that they, you know, deprived him of his right to make a call to his lawyer as soon as he was arrested.

COOPER: And what is your case? I mean, how do you build a case in this? I mean, this is -- a lot of people think this is related to Stacy Peterson. It's not, this is related to Kathleen Savio?

BRODSKY: Yes, my understanding is this is related to Kathleen Savio. As you can hear, my phone is ringing off the hook.

This is related to Kathleen Savio. The Savio case is a fairly circumstantial case, which is tough for the prosecution in the first place. Because it has problematic forensic evidence, the original finding of the pathologist was that it was an accidental death.

It's going to be a prosecution without a crime scene. It's going to be a very tough case for the prosecution. And you know, we're going to defend it tooth and nail.

COOPER: They did take up her body from the ground, though, and they did another autopsy, and that's what led to these charges.

BRODSKY: Well, we had already spoken to the pathologist that we were going to use in Drew's defense. That's Cyril Wecht, very imminent pathologist. In his opinion -- although he hasn't seen this -- the new pathology -- the new report, obviously, it hasn't been given to us.

But he looked at the old autopsy that we were able to get copies of. And from that, he did not see anything shouting to him that it was anything but an accidental death.

Of course, you know, I have to wait for Cyril's full report after examining all the slides and the microscopic evidence and the fluids and everything before I can quote him on his opinion. But, you know, there's certainly nothing there that shouts homicide.

BLOOM: Joel, Lisa Bloom here, and again, thanks for joining us here on CNN. James Glasgow, the state's attorney, has said that the grand jury will remain in session and will continue to investigate the death of Stacy Peterson.

Do you expect charges will be coming in connection with her disappearance as well?

BRODSKY: No, I don't expect anything with Stacy.

BLOOM: But you didn't expect this either, Joel?

BRODSKY: Well, yes, I understand, but, I mean, if there was ever going to be a charge, we always knew that it was going to be the Kathy Savio case because that's the case that they have a body on.

And as I've always said, you know, I've looked back, and, you know, I've never found a case of a bodiless homicide, you know, a homicide prosecution in the state of Illinois in the last 100 years where there's no crime scene, where you don't have any evidence of any, you know, pools of blood or, you know, weapons or, you know, things like that.

You know, in this case, there's no crime scene. In Stacy's case, there's no crime scene. There's not even physical evidence of any struggle, no weapon sort of...

COOPER: And is it still your client's contention that his wife, that Stacy Peterson, ran off with another man?

BRODSKY: Yes. He's always said that -- well, you know, that's what he told her, that she found somebody else and she was going.

Whether or not there really is another man or she just said that is another question, obviously.

BLOOM: But the problem, Joel, has been it's always seemed so implausible that she wouldn't call her own family, her sister, her own children. She would run off. And the only person she would tell would be Drew.

BRODSKY: Yes, I understand that, but you have to understand, that's what Stacy's mother did. She just walked away one day and never contacted any family, didn't contact her kids, didn't contact her husband, and nobody.

So I mean, if you can say it's unusual, yes, it's unusual, but it's unusual for Stacy's family? No. It's the second time it happened.

COOPER: It's tough, though, in this day and age for someone to completely drop off the grid, though, isn't it, Joel?

BRODSKY: No, I don't think so. I mean, we found -- well, I got my hand slapped for talking about this because we learned about it in discovery, so I really can't say much about it, but there's some indication that Stacy actually had plans on leaving and not being able to be traced.

BLOOM: Well, the other problem is there's no missing man. If she went off with a man, there would be a missing man, too, wouldn't there?

BRODSKY: Well, it depends on the man. There's some people that are -- either A, he's not missing to his family, his family knows where he is, if there is another man.

Or, for example, you know, there's people that have very loose connections, don't have family, you know, drifters or people who really don't have very tight family ties, and it could have been somebody like that.

There is another man because like we said, we don't know if there is. That's just what she said.

COOPER: Joel, final question. What is your next step here?

BRODSKY: Well, our next step is to, you know, do a motion to reduce bond to a reasonable level. I've researched bonds in Will County, Illinois, for over the last ten years.

COOPER: He's being held on $20 million bail. You say that's too much.

BRODSKY: $20 million, absolutely. The last bond that was even close to that was the Kevin Fox case where he was accused of raping and killing his daughter, 2-year-old daughter and friend. And that was a $25 million bond. Most of the bonds, the average bonds for homicide...

COOPER: Do you believe you can get him out of jail?

BRODSKY: I believe we're going to -- once we present the evidence and past bond history, yes, I believe we'll get a reasonable bond set, and he will be able to make it.

COOPER: All right, Joel Brodsky, I appreciate your time. I know it's a busy day for you. Thank you very much.

BRODSKY: My pleasure, my pleasure. Thank you.

COOPER: Just found out about five hours ago. We're still waiting for the family of Stacy Peterson to begin their news conference. That's the podium set up right there. We're going to bring that to you live.

Meantime, you can join the live chat happening at ac360.com right now. Also you can check out Erica Hill's live web cast during the breaks.

Next on 360, we're going to have more breaking news. This college junior gunned down in broad daylight. The suspect is in police custody. It happened just moments ago. There's been a nationwide manhunt for the suspect.

This is just breaking news right now that the suspect is in custody. We'll have the latest on the story ahead.

Also ahead, slash and spend. President Obama's budget plans, cutting more than 100 federal programs. How does that create jobs, though, and how much money does it really save? We're going to "Dig Deeper" on that.

Plus, saving Chicago's kids from the violence, Dr. Sanjay Gupta takes us inside the ER where doctors and nurses are fighting to save young lives.

And later: advice from the First Lady on juggling work and family. The life lessons she shares, Michelle Obama in her own words when we continue.

(COMMERCIAL BREAK)

COOPER: More breaking news to get to now. The prime suspect in the murder of a student at Wesleyan University is in police custody tonight. It's happened just moments ago. We learned about it. A massive manhunt all day long has been going on. 29-year-old Steven Morgan, you see him there is being held by Middletown Police in Connecticut.

Susan Candiotti joins me live now with the details -- Susan.

Actually, Susan's not on the phone. We'll try to get in contact with her.

Gary Tuchman though, filed this package earlier today before we learned that the accused killer is actually in custody. Take a look at what this case is all about.

(BEGIN VIDEOTAPE)

GARY TUCHMAN, CNN NATIONAL CORRESPONDENT (voice-over): Johanna Justin-Jinich was a popular student at Middletown Connecticut's Wesleyan University. The 21-year-old junior worked at a bookstore cafe in town. She was there yesterday afternoon when police say this man, 29-year-old Steven Morgan, was waiting for her, wearing a wig and carrying in his right hand the gun he allegedly used to murder her.

UNIDENTIFIED MALE: This has to be every parent's worst nightmare. That you send them away to school, and all you think about every day is, are they OK? And the loss of this family is just unimaginable.

TUCHMAN: Immediately the campus was put on lockdown. Students and faculty were told to lock their doors. Today, too, while authorities said the gunman may be targeting others.

CHIEF LYNN BALDONI, MIDDLETOWN POLICE DEPARTMENT: Evidence uncovered overnight suggests that Mr. Morgan may be focused on the Wesleyan community campus as well as the Jewish community.

TUCHMAN: The victim was Jewish.

In a statement the school offered more details about potential targets. "We have now been made aware that he expressed threats in his personal journals toward Wesleyan students and/or its Jewish students. All students are urged to remain vigilant and to stay indoors."

Authorities do say this was not a random act of violence.

BALDONI: Detectives have uncovered a connection between the victim of yesterday's shooting and the suspect, Steven Morgan.

TUCHMAN: That connection? New York University tells CNN, the suspect and Johanna Justin-Jinich were enrolled in the same summer course at NYU two years ago.

There's more. A spokesman for NYU says, the victim filed a harassment complain against Morgan with the university's Public Safety Department but reportedly declined to follow up or press charges.

There is a nationwide manhunt for Steven Morgan. Today his sister pleaded for her brother to surrender.

DIANA MORGAN, SUSPECT'S SISTER: Steve, turn yourself in right now to any law enforcement agency, wherever you are, to avoid any further bloodshed. We love you. We will support you in every way. And we don't want anyone else to get hurt.

TUCHMAN: Late today a stunning new development. A law enforcement source told CNN Morgan did not immediately leave the scene, saying the suspect stayed in the area where he and others at the scene were questioned by police.

And after supplying police with his name and phone number, he was free to go. That's how close they came to catching the alleged murderer.

Gary Tuchman, CNN, New York.

(END VIDEOTAPE)

COOPER: And that piece filed before we learned the breaking news just moments ago that the suspect is now in custody. Susan Candiotti joins me on the phone with more details.

Susan, do we know how he was apprehended, or did he turn himself in?

SUSAN CANDIOTTI, CNN CORRESPONDENT (via telephone): He turned himself in. And it's just the news they were after. Still waiting for details, but we understand that Morgan surrendered himself in Meriden, Connecticut, which is about a 20-minute drive from Middletown.

And the plan is, of course, to get him back to Middletown as soon as possible where he will be charged with first-degree murder.

COOPER: All right, Susan Candiotti, I appreciate it with the breaking details. Thanks.

Just ahead, 121 programs worth $17 billion, that's what's on the chopping block in President Obama's 2010 federal budget. The President calls it belt tightening. The question is who's getting squeezed and how much money will it actually save? We'll look at that.

Also tonight, we're back on the streets of Chicago where too many kids are dying. Why so many murders? What's being done to stop the killings? We'll talk to two local people who know.

And new troubles for Kiefer Sutherland and why it's linked to a fashion designer and actress Brooke Shields. Some bizarre story about a head butt late at night in New York. We'll tell you the details ahead.

(COMMERCIAL BREAK)

COOPER: President Obama unveiled more details in his 2010 budget today.

You're looking at right now, that's the live shot for what is going to be a press conference from Stacy Peterson's family. We are anticipating that at any moment. We're going to bring you that live when it does happen.

The breaking news tonight that Drew Peterson has been arrested, but not in the disappearance of his fourth wife, Stacy Peterson, but in the death of his third wife, Kathleen Savio. Originally it was thought she had -- her death had been ruled an accidental death, a drowning in a bathtub.

Her body was then exhumed after Stacy Peterson's disappearance. And now police, after a grand jury has sent out an indictment, police have arrested Drew Peterson for the murder of his third wife, Kathleen Savio.

So, again, we bring you that press conference when it happens. That's the mug shot that was just taken earlier.

President Obama unveiling details of his 2010 budget today. And it's important you know about what he wants to create and what he wants to take away. The budget calls for $3.5 trillion in spending.

But at the same time, the President says the hard choices must be made, and that means dozens of federal programs will be slashed. He says it will save the country $17 billion, but he says it's going to be painful. (BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: Now some of the cuts we're putting forward today are more painful than others. Some are larger than others. In fact, a few of the programs we eliminate will produce less than $1 million in savings.

And in Washington, I guess that's considered trivial. Outside of Washington, that's still considered a lot of money. But these savings, large and small, add up.

(END VIDEO CLIP)

COOPER: Well, they add up to the president, but not to some Republicans who blasted his budget as ignoring the national debt which now tops more than $11 trillion.

So what are the programs he wants to cut, and will you pay a price?

Tom Foreman has tonight's "Raw Politics."

(BEGIN VIDEO CLIP)

TOM FOREMAN, CNN CORRESPONDENT: Anderson, the president is taking the budget ax to 121 federal programs including more than $13 billion in defense spending including some weapons systems the Pentagon no longer wants; $78 million for some education programs he says are outdated and underperforming; $52 million to store raw cotton when prices are low; $20 million for some health programs up in Alaska and more than $500,000 to keep an educational attache in Paris.

All together, this is $17 billion in savings this year, less than one percent of the $3.5 trillion budget he is proposing. But it's just the beginning.

OBAMA: All told, by the end of my first term, we will cut the deficit in half. Over the next decade, we'll bring non-defense discretionary spending to its lowest level as a share of Gross Domestic Product since 1962. We will also continue to look for ways we can save taxpayer money.

FOREMAN: Here is the potential problem, though. This year's deficit is expected to be four times higher than last year's, according to the Congressional Budget Office.

Economic troubles which started under President Bush and the massive spending aimed at spurring a recovery are largely to blame for this big difference here.

But President Obama's own ambitious programs also bring a hefty tab. So he could, indeed, cut the deficit in half before his four- year term is up. But it would still be as high or higher than it was last year and the CBO says then it will rise even higher after that.

The White House says that's all too pessimistic. The President expects a stronger economic recovery and more revenue than the CBO, but it is a big political bet with very big money -- Anderson.

(END VIDEO CLIP)

COOPER: That's a big bet indeed. Tom thanks.

There's more about President Obama's proposed budget reductions on our Web site at ac360.com; a full list of the proposed cuts.

Also ahead, tonight David Gergen is going to join us with his take on Obama's budget cuts worth $17 billion in savings. Will that even make a dent in the face of the trillions of stimulus spending?

Also, more than 13,000 residents in Santa Barbara are forced to evacuate as California wildfires burn out of control; the flames just unbelievable.

And also mom-in-chief, Michelle Obama speaking out for families struggling to find the ever-elusive balance between work and home. Her advice when 360 continues.

(COMMERCIAL BREAK)

COOPER: Well, big plans from President and big cost to 121 federal programs.

We're "Digging Deeper" now. Joining us is senior political analyst, David Gergen.

David, I want to play something that Senator Judd Gregg said today about the president's budget cuts. Take a look.

(BEGIN VIDEO CLIP)

SENATOR JUDD GREGG (R), NEW HAMPSHIRE: It's like taking a teaspoon of water out of a bathtub while you keep the spigot on at full speed and the bathtub continues to fill up, the spigot of spending, the spigot of government growth.

(END VIDEO CLIP)

COOPER: One-half of one percent of the total budget is about what these cuts are. Is that really enough, or is this just kind of symbolic?

DAVID GERGEN, CNN SENIOR POLITICAL ANALYST: Symbolic. You know, Tom Foreman just said, he talked about the president bringing an ax to the budget. Unfortunately, it looks more like a set of tweezers.

It is a very, very small -- and here's the real point, Anderson. Not only is it small, but it's going to be hard to get these done. There is resistance already being expressed on Capitol Hill against some of these cuts. So it underscores how difficult it is to cut things in Washington, even as it's extremely easy to add things. And I think...

(CROSS TALK) COOPER: It's interesting how they're selling it, too, by saying the number of programs that they're cutting really as opposed to talking about kind of the actual dollar amount, because when you hear, oh, 100 and some odd programs, it sounds kind of bigger than it is.

GERGEN: Well, that's exactly right. And we saw this same exercise almost in illusions under the Bush administration. They were going to cut even more programs and had more alleged cuts, which never really materialized, and the deficits kept going up.

As I go around the country, Anderson, what I find is that people in the financial community are mostly concerned about the health of the banks. I think there was some encouraging news perhaps on that tonight.

But the country at large is really concerned about jobs which we're going to hear more about tomorrow and about these looming deficits. I think the prospect of $1 trillion a year or more of deficits, which is what we're looking at right now over the next four to eight years, is very sobering to people.

People who want President Obama to succeed. They're in his corner. But they're getting worried even to the point of being a little frightened by these huge deficits, and I just don't see the will in Washington to cut them.

COOPER: It's also scary when you look at Tom Foreman's report before that, the Congressional Budget Office is saying, all right, even if you cut the deficit in half by the end of his first term, which they're saying is what he wants to do is basically equal to what it was last year, and then it's going to get bigger, according to CBO.

Now the Obama administration says, "Look, those figures are too pessimistic." But the Congressional Budget Office is pretty reputable.

GERGEN: It's very reputable, and it's trusted by both sides.

COOPER: Right.

GERGEN: I think that's in some ways why, Anderson, why the first 100 days were extremely important. The decisions made in the next 100 to 200 days are going to be perhaps even more important about what happens to the long-term health of the economy.

On health care, the president has this huge health care package he wants to pass. We do have a system that's in meltdown, but the question becomes, how are you going to pay for it? And how are you going to make this actually work so you can bring the costs of health care down? How are you going to impose a tax plan for energy on what's called cap and trade on this economy?

And I think that's what a lot of Americans are increasingly asking. They give credit to president Obama for helping to lift a sense of crisis on the economy. Again, we'll have to look at that big jobs number tomorrow. But they're getting worried about the longer term future.

COOPER: I read in the "L.A. Times" the other day, they were saying that it's now kind of President Obama's economy. It's now his -- it's got his name on it. Nancy Pelosi blamed the situation on what she said was the legacy of fiscal recklessness inherited by President Obama and the Congress.

Can they still point to the Bush administration as being to blame for what they're dealing with now?

GERGEN: I think they can absolutely point to the Bush administration for the huge deficits this year. Part of the deficit he inherited and then he inherited this economic crisis, he had to act. He had to spend. He had to create these deficits.

The issue becomes more the longer term. And over the next couple years, it does become his economy. You know, and we went through the Vietnam War. And remember, it was Johnson's war right up till about a year after Nixon took over. And then it became Nixon's war.

And that's what happens. It goes with the territory of being president.

COOPER: It goes with the territory. David Gergen thanks. Appreciate it, David.

GERGEN: Thanks.

COOPER: Up next tonight, more on our breaking news: Drew Peterson arrested tonight. Here's his mug shot. We just got it. He's charged with killing his third wife. He could still face charges for the disappearance of his fourth wife, Stacy. Her family is speaking out tonight. We'll hear from them in a moment.

And we take you to Chicago where 36 school-aged kids have been gunned down since January -- 36. We're talking about 13-, 14-, 15- year-olds shot and killed in their own neighborhoods sometimes on their way back from school; all too often being killed by kids their own age.

And there are some who are calling for more gun control, but is that really the answer? We explore that ahead.

And a celebrity Miami priest caught on tape -- have you seen this -- getting cozy with a woman on the beach. The photos have caused anger, outrage, surprise. We'll have that in tonight's "Shot."

(COMMERCIAL BREAK)

COOPER: Family of Stacy Peterson, who is still missing, has decided not to hold a press conference tonight after all. We were waiting for that. But they did have this to say a moment ago about the arrest of Drew Peterson tonight. Take a look.

(BEGIN VIDEO CLIP) PAM BOSCO, SPOKESWOMAN FOR STACY PETERSON'S FAMILY: I'm just very thrilled that we're here at this point in time. I know we're not focusing on Stacy today, but we're just happy for the Savio family. We always said if Stacy and Kathleen had one thing in common, and that was Drew Peterson.

CASSANDRA CALES, STACY PETERSON'S SISTER: I feel relieved that justice is taking its role. It's like a big weight off my shoulders.

UNIDENTIFIED FEMALE: Do you believe that he'll be convicted?

CALES: I do believe so, yes. It's a very strong and thorough investigation.

(END VIDEO CLIP)

COOPER: Again, he's been indicted by a grand jury in what now they say is the murder of his third wife, Kathleen Savio. This is not in relation to Stacy Peterson, whose family you just heard from tonight.

We're continuing our reporting from Chicago now to the deadliest place in the country to be a school-aged child, to be a teenager. Among big cities, Chicago doesn't have the most gangs or even the most guns, but it tops every other city in school-age murders.

Just since January, 36 kids have been killed, including a 16- year-old boy shot to death just yesterday. There's a vigil for him there.

These young victims often were simply in the wrong place at the wrong time. Many of them gunned down by other kids.

David Mattingly reports.

(BEGIN VIDEO CLIP)

DAVID MATTINGLY, CNN NATIONAL CORRESPONDENT (voice-over): At 13, Samir Khan made his mother proud. She says he liked school, liked to cook and was a promising young athlete. But now his mother can't stop crying.

DOMINIQUE MAYO, SAMIR KHAN'S MOTHER: Every day, all day, saying why?

MATTINGLY: Samir was gunned down in October near this Chicago city park. He was playing in a youth football game.

(on camera): Afterward he went to a neighborhood store not too far from here to buy a bag of potato chips. He was exactly where he was supposed to be, not doing anything wrong. That's when another teenager carrying a gun opened fire and killed him.

MAYO: I'm just puzzled, like, I keep saying, what did he get killed for?

MATTINGLY (voice-over): His mother says Samir had been threatened. She doesn't know why. The shooter was only 15.

Like so many grieving Chicago parents, Samir's mom blames the abundance of guns on the street.

Ron Holt used to think that way, too. After his son, Blair, was shot and killed in 2007, this Chicago cop initially became a believer in tougher background checks for gun buyers. But now he's changed his tactics, finding success targeting the shooters instead.

(on camera): So now you're looking past the guns?

RONALD HOLT, CHICAGO POLICE: Yes.

MATTINGLY: You're looking at the kids who are actually holding them?

HOLT: Yes, exactly.

MATTINGLY (voice-over): Pursuing a face-to-face approach, he takes to the streets with other activists, trying to defuse violent confrontations before they happen.

(on camera): That's where these lives are going to be saved?

HOLT: That's where lives are going to be saved because you are appealing to that potential offender right there in your face, in your face.

MATTINGLY (voice-over): Experts at the University of Chicago say targeting potential gangbangers like this is great and moving in the right direction. But research into how to stop the young shooter is years behind.

JENS LUDWIG, UNIVERSITY OF CHICAGO CRIME LAB: Anybody who says anything about how to address this problem needs to acknowledge that there is a lot of guesswork in what we're doing.

MATTINGLY: Recent Chicago cases punctuate the immediate need for something new. A 15-year-old was beaten, shot and burned last Friday. On Wednesday, a 16-year-old was killed after dropping his sister off at elementary school.

(on camera): In this case, the victim was walking down the sidewalk like this when witnesses say a gunman ran up behind him and shot him in the back of the head. Experts tell us that no background check alone is enough to curb this kind of violence.

MAYO: I know my baby was scared when he saw it. I know he was.

MATTINGLY (voice-over): Those experts and Samir Khan's mother ask themselves the same questions. Why are so many children in Chicago armed and doing so much harm? Why are more Chicago teens dying when other cities have more gangs and more guns?

David Mattingly, CNN, Chicago.

(END VIDEOTAPE)

COOPER: Up next, we're going to take you where Chicago kids go to be saved. Sanjay Gupta takes us inside an emergency room where so many of the victims end up.

And later, Kiefer Sutherland charged with assault after an alleged head-butting at a New York bar. We've got details.

And Michelle Obama unplugged, giving advice to working families and speaking candidly about her own struggle to balance work and family. Take a look.

(BEGIN VIDEO CLIP)

MICHELLE OBAMA, FIRST LADY OF THE UNITED STATES: I call myself a 120 percenter. If I'm not doing any job at 120 percent, I think I'm failing. So, if you're trying to do that at home and at work, you find it's very difficult and stressful and frustrating.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

COOPER: Not long before we went on air last night, we learned that another child had been murdered in Chicago. A 16-year-old boy; he was the 36th student killed in the city this year. Think about that for a second. Three dozen students murdered just since January. These are some of their pictures, some of the victims.

Chicago is now the country's deadliest city for school-age kids, and its hospitals see proof of that grim fact far too often. 360 M.D. Sanjay Gupta goes "Up Close."

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT (voice-over): When 19-year-old Tyrese McKay was rushed into the ER here at Advocate Christ Medical Center, doctors didn't think he'd survive. He had been shot from behind while riding his bicycle.

Trauma surgeon, Dr. Steven Salzman.

(on camera): How close did he come to dying?

DR. STEVEN SALZMAN, TRAUMA DOCTOR: We told Tyrese's family that we did not expect him to live through the night. Tyrese had major abdominal vascular injuries to the point where he was profusely bleeding.

TYRESE MCKAY, SHOOTING VICTIM: I was out of it. I thought I was going to die.

GUPTA (on camera): Now weeks later, Tyrese is hanging on. He's lucky. This is the second time he's been shot in only three months.

MCKAY: The first time, when I got shot the second time, the bullet went like about an inch away from the first gunshot.

GUPTA: Do you know other people who have been shot?

MCKAY: A lot of guys I hang around have been shot before.

GUPTA: You say that almost like, you know, you go swimming on the weekends.

MCKAY: That's how it is. It's like that. Those things just go on in everyday life now.

GUPTA (voice-over): In the past 16 months, 250 teenagers have been wheeled through these ER doors; gunshot victims, every one of them.

SALZMAN: Just several weeks ago, we literally had six or seven gunshot wounds. There were basically two badly injured gunshot wounds, one that wound up dying, two other gunshot wounds here, two other gunshot wounds over there. And so it was incredible. It was completely filled. And actually, that same night we had a 4-year-old and a 2-year-old that were shot, too.

GUPTA (on camera): And the thing these patients have in common is that they're young, they're healthy, and they're suddenly in critical condition.

And when they come in, everything starts to move. Fast.

SALZMAN: We've had patients basically come in, we knew instantly they need to go to the OR, called up and said, we're coming, and literally within five minutes they were up in the operating room, lying on the table and almost ready to go at that point.

GUPTA (voice-over): And the injuries can be absolutely horrific.

(on camera): Let's take a look inside one of the busiest ORs here in the city of Chicago. You know, it's here in the operating room where life and death collide. Where there's a duel constantly going on trying to remove bullets, stopping bleeding, trying to fix these badly broken bodies. And as we know, sometimes death wins.

SALZMAN: This is a young man that came in about a month ago who was shot with a high-powered rifle, with an AK-47.

GUPTA: A mother of a patient you had to talk to about the fact that he didn't survive. What was that like?

SALZMAN: It's difficult. I got to tell you that. It doesn't matter how many times you've delivered the news. And I, myself, had delivered the news countless amount of times. But it doesn't matter if it's your first time or your millionth time; those words are always difficult to say.

GUPTA (voice-over): Tyrese's mother won't have to hear those words this time.

(END VIDEOTAPE)

GUPTA: I'll tell you what, we are in the hallway there of one of the busiest emergency rooms in Chicago. And tonight's shaping up to be a night like most others here, Anderson.

Just behind me, doctors working on a patient they just brought in with a very critical stabbing. But this is a place where they bring so many of those gunshot wounds that you've been talking about -- Anderson.

COOPER: Are the doctors able to keep up with the caseload? It's got to be overwhelming.

GUPTA: It's remarkable. What they were telling us -- they do two things. One is they stack patients meaning that they take patients up to the operating room from here, one right after the other. So as soon as one patient's done, they start bringing another one out.

Also, Dr. Salzman who you just met in the piece says oftentimes even on his nights off, they get called in. So they're able to keep up, but the system with so many gunshot wounds, is very hard to just sort of maintain it -- Anderson.

COOPER: Yes. Sanjay, appreciate it. Thanks very much. In the ER, Sanjay.

Join the live chat right now happening at ac360.com. Also Erica Hill's live Web casts, that's going on during our breaks.

Up next, the mother-in-chief, Michelle Obama, in her own words with advice on juggling a busy life at home and at work.

Plus, mass evacuations in Santa Barbara, California -- talking about wildfire continuing to rage. We'll have the latest on the fight ahead.

And a priest removed from his duties after racy photos surfaced of him on a beach with a woman. It's tonight's "Shot." Stay tuned.

(COMMERCIAL BREAK)

COOPER: First lady Michelle Obama took the podium again today, this time addressing business executives at a Corporate Voices for Working Families conference. With her own chief of staff and personal assistant, the White House mom-in-chief admitted juggling work and family is a lot easier these days but in advocating for greater flexibility for working parents, she recalled struggles to find the right balance in her own life.

Here's Michelle Obama in "Her Own Words."

(BEGIN VIDEO CLIP)

M. OBAMA: I personally as Donna described know the challenges of leading a busy life at work and at home, trying to do a good job at both and always feeling like you're not quite living up to either. And even though my current life, trust me, is very different than it was and for most people and I do know that. I know that right now I'm living as challenging as it may seem in a very blessed situation because I have what most families don't have is tons of support. All around. Not just my mother but staff and administration. I have chief of staff and a personal assistant and everyone needs that. That's what we need.

Get everyone -- everyone should have a chief of staff and a set of personal assistants. But one thing I know from meeting women and men across the country is that the work life challenges that I faced aren't different from the challenges facing other families and undoubtedly many of you.

Even when I had sick leave, I found myself, you know, hoping that the kids would stay well just because I couldn't afford to take the day off because there was a meeting or something was going on. So your whole life is just contingent upon everything working perfectly.

(END VIDEO CLIP)

COOPER: Michelle Obama.

Still ahead, a popular Miami priest takes a very public walk on the wild side. We've got the photos and the fall out. It's tonight's "Shot."

But first Erica Hill joins us with the "360 News and Business Bulletin" -- Erica.

ERICA HILL, CNN CORRESPONDENT: Anderson, more than 13,000 residents have now been forced to flee a wildfire burning in Santa Barbara County. At least 20 homes there have been destroyed. The fire which began on Tuesday has been strengthened by gusty winds.

These are actually live pictures coming to us from our affiliate KCAL and KCBS. You can see the flames there; the winds fueling those flames. There has also been a severe drought so you can imagine making this blaze even more difficult to battle.

Meantime, in Pakistan, speaking of battles -- the country launching an offensive against Taliban fighters in the Swat Valley Region; that's in northwest Pakistan. Fighter jets are pounding the area. As many as 500,000 civilians are expected to flee and that is raising serious concerns of a humanitarian crisis.

General Motors announcing $6 billion in losses for the first quarter today and that raises concerns about bankruptcy. GM's operating on more than $15 billion in federal loans. It face a June 1st government deadline to submit its restructuring plans.

Actor, Kiefer Sutherland is facing a misdemeanor assault charge for allegedly head butting a fashion designer at a Manhattan nightclub. Designer Jack McCollough claims the actor attacked him after an argument leaving him with a cut on his face. Police may also question actress, Brooke Shields, as a witness. Last year, Sutherland you may recall served 48 days in a California jail on a drunk driving charge.

And a 3-year-old Missouri boy who disappeared on Monday found alive and well Wednesday afternoon; just about a half mile from his home. He was dirty, thirsty and barely clothed but he had survived two day in the rugged Mark Twain National Forest. He didn't have any food and water but -- there's the little guy now, little Joshua.

COOPER: That's great news, he got back. It's amazing.

HILL: Happy ending.

COOPER: Yes.

Still ahead, Erica, a priest caught on camera in a steamy embrace with a woman on a beach. The church removed him from his post. We'll tell you why some parishioners are sticking up for him. That's tonight's "Shot."

(COMMERCIAL BREAK)

COOPER: Erica, tonight's "Shot" is about a very public fall from grace. Take a look at these pictures. He's not wearing his collar but that is Father Alberto Cutie, a wildly popular priest in Miami, I'm told. He's hosted several talk shows, writes a newspaper column.

It's unclear who the woman is. The pictures were obtained by "The Miami Herald." The church has stripped the priest of his duties, running the archdiocese. He is asking for forgiveness, however. Some parishioners say the church should give him a break; they say he's only human. One woman even pointed that being so handsome he was simply surrounded by too much temptation.

HILL: Right. He also gave a lot of advice. He had a book out about couples' advice.

COOPER: Cutie.

HILL: There are I think 25 pictures in total. Cutie...

COOPER: Yes, that's his name.

HILL: Twenty-five pictures in total that this Mexican magazine actually first released.

COOPER: Wow. Strange case.

HILL: A lot of debate.

COOPER: No doubt about it.

You can see all the most recent shots in our Web site ac360.com. You can also see the "Beat 360" for tonight. We didn't have time to put it on the air but it will be online.

That does it for 360. Thanks for watching.

"LARRY KING" starts now.

See you later on tonight.