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ANDERSON COOPER 360 DEGREES

Bill Clinton to Speak at the Democratic Convention; The Energy Battle; Where is Caylee?

Aired August 7, 2008 - 2300   ET

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


ANDERSON COOPER, CNN ANCHOR: Tonight, breaking news, a major new role for Clinton at the convention; Bill Clinton. We have late breaking details tonight.
And Hillary Clinton is front and center once again tonight, calling for a catharsis at the convention. Does Barack Obama still have a Hillary problem? The latest details on that tonight.

And later, new developments in the disappearance of little Caylee Anthony. Police, back at her home and new information released from a search warrant that pokes holes, big holes in her mother's changing story.

We begin tonight with the breaking news on a day when a tape of Hillary Clinton has been making Obama supporters nervous by making headlines. Late word tonight on an olive branch to Bill Clinton, the former president, who by many accounts is still smarting, if not outright steaming, from his wife's defeat and his own treatment at the hands of the Obama camp.

"360's" Candy Crowley working her sources joins us now with the details of what was offered and accepted -- Candy.

CANDY CROWLEY, CNN CORRESPONDENT: Hi, Anderson. Sources tell me tonight that Bill Clinton has been slotted to speak Wednesday night at the Democratic National Convention. Now whether intended or not, this leak will certainly help assuage some of the Clinton-Obama drama.

(BEGIN VIDEOTAPE)

CROWLEY: Barack Obama will accept the Democratic nomination three weeks from tonight. Presumably they'll have the kinks worked out by then.

SEN. BARACK OBAMA, (D) PRESUMPTIVE PRESIDENTIAL NOMINEE: We're still working out the mechanics of the four days, and our staffs are in communication with Senator Clinton's staffs. But I don't anticipate any problems.

CROWLEY: Obama's sunny side up assessment runs counter to subterranean grumbling from some residents of Clintonland, some peculiar praise from Bill Clinton, and Hillary Clinton's embrace of a plan to put her name into nomination.

SEN. HILLARY CLINTON, (D) NEW YORK: I happen to believe that we will come out stronger if people feel that their voices were heard. CROWLEY: Pressed repeatedly, Obama was noticeably cool to the idea.

UNIDENTIFIED MALE: You would not object to having her --

OBAMA: I didn't say that. I said that they're working it out, guys.

UNIDENTIFIED MALE: How hard can it be, yes or no?

OBAMA: I don't understand, what do you mean? Just because I'm not answering your question doesn't mean that it's her. It's getting worked out by our staffs.

CROWLEY: In the modern era of presidential primaries, no losing candidate has so visibly endorsed their candidate months before the convention and still put their name into nomination.

H. CLINTON: I know just from what I'm hearing that there's this incredible pent-up divider, and I think that people want to feel like, okay, it's a catharsis, we're here, we did it, and then everybody get behind Senator Obama.

CROWLEY: It is kink number one.

OBAMA: I'm letting our respective teams work out the details. I don't think we're looking for catharsis. I think what we're looking for is energy and excitement about the prospects of changing this country.

CROWLEY: Kink two, a still smoldering Bill Clinton capable of blazing into the headlines. ABC asked if Barack Obama was ready to be president.

BILL CLINTON, FORMER PRESIDENT OF THE UNITED STATES: You could argue that no one is ever ready to be president. I mean, I certainly learned a lot about the job my first year. He's smart as a whip, so there's nothing he can't learn.

CROWLEY: A simple yes would have done, but the Obama camp knows the relationship with the former president needs work. Obama, who spoke with Clinton on the phone today, is bent on accentuating the positives.

OBAMA: He's been very supportive. I thought he showed extraordinary restraint in a fairly provocative interview while he was on his trip. I couldn't ask for him to be anymore gracious than he's been and supportive since the campaign ended.

CROWLEY: Conspiracy theorists think the Clintons want Obama to lose so she can run again in four years. But close friends insist that's baloney. Hillary Clinton tomorrow flies off on her first solo campaign trip on behalf of Barack Obama.

(END VIDEOTAPE)

COOPER: Back here now with Candy and Dana Milbank, national political correspondent for the "Washington Post" and CNN's newest contributor. Also joining us on the phone is CNN's senior political David Gergen.

Dana, first of all, welcome very much. Obama today saying this is all a media creation. How bad is the tension between the Clinton and the Obama camps?

DANA MILBANK, CNN CONTRIBUTOR: Well, it's getting a lot better with this late-breaking development here. And I think that they are moving very quickly to work said kinks out because it is a problem.

At the very least it's a distraction that's taking Obama off his message. At worst, it's a serious problem because Obama still has not captured all of those lower income white voters that were behind Hillary Clinton in the primaries. So he really has to get this right here, and they're sort of running out of time.

COOPER: David, how much of a difference is this going to make? If Bill Clinton had not been given a primetime speaking role at the convention, that would have been unthinkable.

DAVID GERGEN, CNN SENIOR POLITICAL ANALYST: Absolutely, Anderson. It's important to remember that Bill Clinton is not only the husband of Hillary Clinton, but he is the only Democrat since Franklin Roosevelt to have served two consecutive terms in the White House.

So he's a major, major figure in American politics. I think it was important for them to give him roles. Interesting they chose Wednesday night, because that is the night of the roll call, and that is what is in contention. This may be a way to dampen down hurt feelings.

If there is no roll call for Hillary, if there's not a chance to put her name in nomination, at least there's a Clinton there that evening who can speak about her with enormous enthusiasm. And also about Barack Obama and be a bridge between the two.

I'm also hearing, Anderson, that there's some possibility of Chelsea Clinton may be given a role before it's over. One wonders if she might not introduce her mother on that Tuesday night.

COOPER: Hillary Clinton is going to speak on Tuesday night?

GERGEN: Yes. The notion now is that Senator Kennedy will speak on Monday night, Hillary Clinton will speak on Tuesday night. And now we learn that Bill Clinton will speak on Wednesday night and of course, Barack Obama is the featured speaker on Thursday night along with his vice-presidential nominee.

COOPER: Candy this maybe a dumb question but for those who haven't been following this as closely as the real political die-hards. The idea that Hillary Clinton's name would be put up for a roll call, what does that mean? For her supporters, what is the significance? For Obama supporters, what's the problem with that?

CROWLEY: Well, listen, you know, you can look at this two ways and you just did and you opened the way for that. First of all, Hillary Clinton has said from the beginning, and certainly more so as it became clear that she wasn't going to win, that she felt this was history, and that history should be given its due. She said this is about her supporters, all of whom dreamed of having the first woman in the White House. So this is kind of her period.

We knew from the day she bowed out that they wanted to have a roll call vote on her name because it puts a period on the history. You know, the Obama people, obviously they don't want this to be about a look how close this was, rah, rah, Hillary Clinton. Have it sort of bring it all up again.

So the question is would it roil the present or would it put a period on history? And that's where they're caught here.

COOPER: Dana, given these lingering tensions, is a VP spot for Hillary Clinton still on the table, if it ever was on the table?

MILBANK: Definitely if it ever was. It would certainly shock everybody in Washington and everybody in the chattering classes. I think that goes just a step too far.

You saw them disagreeing even on whether we can use the term "catharsis" here. If Hillary Clinton wants a catharsis, that in medical terms is a purging and of course that may feel better for the party when it's over but it's going to be pretty uncomfortable along the way.

COOPER: And pretty messy on the convention floor.

MILBANK: Indeed. A mass purging on the floor is not what the party needs right now.

COOPER: Dave, meanwhile you have got the Democrats voicing concern that Obama is not responding forcefully enough to John McCain's attacks. Do you think he should be going blow to blow with John McCain on these ads? I mean, Obama has put out negative ads of his own.

GERGEN: Anderson, more than going toe to toe, he needs to have a group of surrogates, including first and foremost a vice president, who can take the fight to the opposition.

I'm not sure it's in his DNA nor does he want to practice the kind of politics to have a slugfest over the next 90 days with John McCain. Rather he wants to be the positive candidate, but he does need some people to defend himself.

Just ask Michael Dukakis, President Dukakis who never happened, in part because he didn't respond forcefully to the kind of attacks that came.

COOPER: Candy, how negative has this become early on? Historically speaking, you've covered a lot of these races. Does it get this negative this early? CROWLEY: Rarely. The summer is kind of a lull time. Mostly because they ran out of money and the candidates would sort of sit around Washington or go off to fund-raisers. I remember with Bob Dole we were in Washington for a couple of months because they were waiting for the money to come in, in August.

So, I think, the money and the tenseness of the campaign and the stakes have all shown that everything comes early and in this case, the negative ads.

And I would tell you, just in response to the last question, that Barack Obama doesn't pull a lot of punches on the campaign trail. If we're talking about ads, that's something different. But he's quite willing to take a whack at John McCain on the campaign trail.

Mostly his response, say to the Paris Hilton that kind of thing has been to rise above it saying listen, if they want to talk about Paris Hilton, have at it. We need to talk about the issues. He does take swings at him at least on the stump.

COOPER: All right. We're going to leave it there. Dana Milbank, David Gergen and Candy Crowley, good to have you all. Thank you.

Candy is going to stick with us.

We have more on our breaking news tonight about Bill Clinton.

As always, I'm blogging throughout the hour. Join the conversation at ac360.com. I'll join during commercial break.

Up next, Bill Clinton, up close and in his own words. The roots of his apparent resentment, not just at Hillary losing but also the slings and arrows he thinks he took in the process.

Also ahead, a man in custody after allegedly threatening to kill Barack Obama caught with a stash of weapons.

And new police activity in the disappearance of Caylee Anthony. What police took from her grandparent's home today and new details we learned on a search warrant that may have new clues in the case. It certainly pokes big holes in her mother's story. "Crime and Punishment" tonight.

(COMMERCIAL BREAK)

COOPER: Bill Clinton there. In case you're just joining us now, breaking news tonight; he and Barack Obama speaking by phone today. Senator Obama offering him a prime speaking role at the Democratic convention in Denver Wednesday the 27th, of course, the same night the vice-presidential nominee speaks. Bill Clinton accepts the invitation.

It comes hard on the heels of an interview in which the former president seemed to be doing all he could not to endorse Barack Obama.

Up close, "360's" Tom Foreman. (BEGIN VIDEOTAPE)

TOM FOREMAN, CNN CORRESPONDENT: The former president was in Africa talking up health care as he has before for his charitable foundation. But when ABC News asked if he has regrets about his performance in his wife's campaign against Obama, he did not sound charitable.

B. CLINTON: There are things I wish I'd urged her to do, things I wish I had said, things I wish I hadn't said. But I am not a racist, I never made a racist comment and I didn't attack him personally.

He hit her hard a couple times and they hit us a few times and weeks before she ever responded in kind. The only thing I ever got mad about was people in your line of work pretending that she had somehow started the negative stuff.

FOREMAN: Mr. Clinton took particular exception to media coverage of his wife and his work on her behalf.

B. CLINTON: I got bad press. Why? Because I told the truth; that there was a different standard applied to the finest candidate I ever supported.

Now, I would be glad as soon as the election is over in January to have this conversation with you and everybody else. I have very strong feelings about it.

FOREMAN: Mr. Clinton has said for weeks he fully supports Senator Obama now. But it is still not clear what that means. Not clear how much he will campaign for Obama, or what role he or his wife would play in an Obama administration. So those close to the Clintons are grumbling.

JOHN HARRIS, THE POLITICO: They feel that Barack Obama should be working harder to help Hillary Clinton retire her debt. They feel he should be looking more closely at Hillary Clinton as a vice- presidential nominee. They feel he should be paying more respect to both Clintons for the contributions they made to the Democratic Party.

FOREMAN: Democratic Party leaders continue to say publicly all of this will be smoothed over by convention time. But privately, they are looking at their calendars.

Tom Foreman, CNN, Washington.

(END VIDEOTAPE)

COOPER: Back now with Candy Crowley, who has been following all the late-breaking developments tonight. We know now Wednesday, 10:00. Was this, as far as we know, was this only the second time they have talked on the phone since the primary ended?

CROWLEY: As far as I know it is, yes. Now, they have a habit of sort of leaking these things out after the fact. As far as we know, he did talk that one time. We waited and waited, it was after Hillary Clinton had the event with Obama up in New Hampshire. Again, things sort of ratcheted up, where was Bill Clinton, why wasn't he coming out? There was that phone call. And interesting that news of this phone call comes even as the whole drama comes up again.

So, yes, as far as I know, the two times and each time those calls seemed intended, at least the leaking of the news of those calls seemed intended, to kind of tamp down this notion of a continuing feud.

COOPER: And Barack Obama certainly tried to do that today, comments on the plane to reporters saying basically this was a kind of media creation that his people are working it out with the Clinton people.

CROWLEY: Absolutely. And part of that is his own personality. He's very cool. He doesn't tend to sort of rise to the bait. He sort of sees it he thinks for what it is.

And also because there is knowledge inside the Obama campaign, whether they like it or not, and some don't, that they do need to do a better job reaching out to Bill Clinton. Again, as David said earlier, Bill Clinton is a force in the party, as is Hillary Clinton.

They have to watch it as well not to be looking as though they're setting up road barriers for Obama. But they're aware on the Obama campaign that they in fact do have to kind of work with that relationship a little more and I think that's what you saw on that plane today.

COOPER: It's going to be a fascinating convention.

Candy thanks very much.

CROWLEY: Sure.

COOPER: In Florida tonight, a man in custody after allegedly threatening to assassinate Barack Obama. When and where he allegedly made the threat and what the Secret Service says they found inside his SUV and his hotel room. That's just ahead.

Plus, new developments in the search for little Caylee Anthony, including what detectives took from her mother's closet today. Plus, new details in a search warrant released today. They debunked a story about Casey Anthony getting a phone call during which she talked to her daughter. That allegedly happened a month after she was last seen.

All that ahead, tonight.

(COMMERCIAL BREAK)

COOPER: The case of the missing toddler, Caylee Anthony, gets stranger by the day. She's been missing now more than a month and investigators can not seem to get a straight story from her mother. New details on that tonight, just ahead.

But first, Randi Kaye joins us with a "360 Bulletin." RANDI KAYE, CNN CORRESPONDENT: Hi there, Anderson. A Florida man is being held without bond for allegedly threatening to assassinate Barack Obama. The Secret Service says Raymond Hunter Geisel made the threat last month during a training class for bail bondsmen and had weapons in his SUV and Miami hotel room. Geisel denies the charge.

A military jury sentenced Osama bin Laden's former driver, Saleem Hamdan, to five years, six months in prison; far less than the 30 months to life the government wanted. Hamdan was convicted of providing material support to Al Qaeda but cleared of terrorism conspiracy charges.

Detroit's mayor, Kwami Kilpatrick, was jailed today for violating the terms of his bond by taking an unauthorized trip to Canada last month. Kilpatrick is awaiting trial on perjury and other felony charges. So it looks as though he will spend at least tonight, one night in jail.

COOPER: All right Randi.

Here's tonight's "Beat 360" photo. Senator Barack Obama, speaking by satellite TV to members of the American Federation of State, County and Municipal Employees in San Francisco last week.

Here's the caption from our staff winner, Julia: "Obama doing little to diffuse allegations that he's getting a 'big head'."

KAYE: Oh, boy.

COOPER: Think you can do better? Go to our Website, ac360.com, click on the "Beat 360," send us your entry, we'll announce the winner at the end of the program tonight. The winner, of course, gets a "Beat 360" t-shirt.

Still ahead, Obama and McCain's energy battle heats up. Hear both candidates in their own words and then a fact check on those words. You can decide for yourself who's right.

Also ahead tonight, a mayor's dogs are killed during a police raid at his home and the police aren't apologizing. What happened? Details ahead.

And new clues in the search for Caylee Anthony and a search warrant that contradicts her mom's story big time, coming up.

(COMMERCIAL BREAK)

COOPER: On the trail today, John McCain visited Wilmington, Ohio, a stressed-out city in a critical swing state. Wilmington could lose up to 10,000 jobs if the shipping company DHL goes through with plans to shut its local hub.

McCain and his campaign manager have been under fire for helping DHL complete a key corporate merger in 2003. Today, McCain called for a federal investigation into DHL's latest plans. He also hammered Barack Obama's energy plan. As part of our commitment to letting you make up your open mind on these issues, we're bringing you the candidates in their own words, extended chunks of their comments. And then we'll check those words against the facts.

Here's what John McCain said today in Ohio.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN, (R) PRESUMPTIVE PRESIDENTIAL NOMINEE: I spoke up against the administration and Congress and Senator Obama, when they gave us an energy bill with more of giveaways to big oil and really no solution to our energy problems.

I want to take a minute here on this issue, because I think Senator Obama might be a little bit confused. Yesterday he accused me of having President Bush's policies on energy. That's odd, because he voted for the president's energy bill and I voted against it. I voted against it. It had $2.8 billion in corporate welfare to big oil companies and they're already making record profits, as you know.

Senator Obama voted for that Bill and its big oil giveaways. I know he hasn't been in the senate that long, but even in the real world, voting for something means you support it. And voting against something means you oppose it.

(END VIDEO CLIP)

COOPER: So how do his words check with the facts? Keeping them honest, here's "360's" Tom Foreman.

(BEGIN VIDEO CLIP)

FOREMAN: Anderson, for weeks Obama has been drawing links between McCain's energy plan and the policies of President Bush. Sticking with his theme that McCain will be just the McSame as bush. But McCain is now saying, let's play that record.

In 2005, when a big energy bill came up with potentially far-reaching impacts on America's energy supply, President Bush supported the plan, signed it into law three years ago this week. And 85 senators voted for it, including Barack Obama. Only 12 voted against it, and John McCain was one of them, saying it contained wasteful spending.

The bill was sharply criticized even at the time for giving billions in subsidies to big oil. But Obama defends his vote by pointing out that the measure also included funding for alternative and renewable fuels such as ethanol. He is, after all, a senator from Illinois, a big corn state and the nation's third largest ethanol producer.

All of that said, Speaker of the House Nancy Pelosi is now hitting McCain on a different vote, saying correctly that last year he could have helped to repeal some tax breaks for big oil but he was the only senator to skip a critical vote on that measure and big oil won the day -- Anderson.

(END VIDEO CLIP)

COOPER: Up next, Obama fires back, why he says the McCain campaign isn't serious about saving you money.

Also ahead, new developments in the search for missing 2-year-old, Caylee Anthony. New evidence seized by the police. And details from a search warrant that casts a whole lot of suspicion on her mother's whereabouts and her whole story.

Of course, the mom is already behind bars on other charges. "Crime and Punishment" coming up on "360."

(COMMERCIAL BREAK)

COOPER: Barack Obama was traveling today. He had no public events but he did find time while in the air to talk about energy and some recent attacks by his opponent.

We brought you John McCain in his own words a moment ago as part of our commitment to letting you make up your own minds who's right on the issues by actually hearing extended clips of what the candidates are saying.

Now here's Barack Obama.

(BEGIN VIDEO CLIP)

BARACK OBAMA: In terms of the tire gauge issue, I think that was and is an illuminating issue. You've got a, number one, John McCain pretending that that was some centerpiece of my policy as opposed to a response to a town hall meeting. So he had a misleading ad, which everybody knows was misleading.

Then it turns out that John McCain himself said actually inflating your tires is a smart thing to do, as did President Bush, as did the AAA, as did NASCAR.

And so I thought it was a good example of the fact that the other side is not serious about real energy savings that can push down the price of gas. They're interested in scoring political points.

(END VIDEO CLIP)

COOPER: So how does what Obama said hold up to light?

Once again, "Keeping them Honest," "360's" Tom Foreman.

(BEGIN VIDEOTAPE)

FOREMAN: Anderson, just as Obama says, it appears he brought up the idea of checking your tire pressure only in response to a question from a man attending one of his public events.

Obama has been talking about his energy plan at length all week and if you read that plan on his Website, you can see the tire pressure is not a corner stone. In fact, it is not even mentioned. Obama's plan calls for energy tax rebates for consumers, big new taxes on oil companies, lots of incentives to promote green energy technology and much more.

On the other hand, living in a glass house holds perils. Obama says the Republicans just want to score political points. Well, he himself has characterized McCain's energy program as being all about offshore drilling. And that is also untrue.

McCain supports it, yes. But he's also spoken at length about the need for new greener, cleaner fuel sources and ending our oil dependence, just like Obama -- Anderson.

(END VIDEOTAPE)

COOPER: Tom thanks.

The campaigning will not take a break during the Olympics which kicks off tomorrow in Beijing.

Here's the raw data; Barack Obama spending $5 million on TV ads that are going to air during the Summer Games. The move was called unprecedented when announced weeks ago; now the McCain camp is trumping that amount, will spend $6 million on Olympic ads.

Next, new evidence in the search for Caylee Anthony; police back at her grand parent's home today, collecting more evidence and releasing new information in a search warrant. What they're looking for and how it could prove Caylee's mom is lying coming up.

And later, police raid and threw the mayor in handcuffs and his dogs in a pool of blood. The latest on his story also tonight.

(COMMERCIAL BREAK)

COOPER: "Crime and Punishment" tonight; authority and new details, developments and theories in the search for Caylee Anthony. Right now, police crime labs are pouring over evidence belonging to Caylee's mother, Casey. We know what they took and we're going to tell you in a moment.

Later, we learned that Casey's brother will reportedly visit her in jail tomorrow morning. All this as several troubling scenarios surfaced, reports that may cast doubt on what Casey has been saying.

We're going to talk to a family friend of Casey's in a moment, a woman who used to baby-sit for little Caylee in a moment.

But first, let's get you caught up with the latest in the case with "360's" Randi Kaye.

(BEGIN VIDEOTAPE)

KAYE: The home on Hope Spring, Drive was swarmed by cameras; the curious, and crime scene investigators, who for a second straight day, left carrying evidence they hope may lead them to this missing toddler. The lead detective in the hunt for Caylee Anthony also paid another visit. He said he was asked to by Cindy, Caylee's grandmother.

SGT. JOHN ALLEN, ORANGE COUNTY SHERIFF DEPARTMENT: There are some things that would be important to us and asked us to come out and meet with her and pick that stuff up and talk with her.

KAYE: What they picked up was evidence obtained with this search warrant. The items belong to Caylee's mother, Casey, and were taken from a closet in her bedroom; three pairs of pants, six shirts in various sizes and two skirts.

Police hope the evidence from the house will provide some clues. They are already testing DNA from a stain in Casey's car. Local media say the family has also turned over Casey's cell phone records. Investigators are looking for any contact she may have had with the babysitter she claims she left Caylee with on June 9th.

Casey has been jailed on charges of child neglect and filing a false police report since mid-July. Until recently, her family suspected she was lying. This was what her mother said in a 911 call on July 15th.

(BEGIN AUDIO CLIP)

CINDY ANTHONY: I told you my daughter was missing for a month. I just found her today. But I can't find my granddaughter. She just admitted to me that she's been trying to find her herself. There's something wrong. I found my daughter's car today and it smells like there's been a dead body in the damn car.

(END AUDIO CLIP)

KAYE: Casey initially said she did not know where her daughter was. Now she says she knows Caylee is alive and could be in harm's way. In a case full of surprising developments, one reporter in Florida tells CNN Casey may even have posed as her daughter's babysitter.

One day after Caylee was last seen alive, her mom reportedly used the babysitter's name to look at an apartment; the same apartment where she told police the babysitter lived. That apartment, police say, had been vacant for six months.

Police have evidence, they have more than 1,000 tips, but are they getting any closer to solving the mystery of Caylee Anthony's disappearance?

Randi Kaye, CNN, Atlanta.

(END VIDEOTAPE)

COOPER: Well, as Randi just reported, police went today and took clothing from Casey's closet at the invitation of Casey's mother; some shirts, some skirts as well and pants.

The family has also turned over Casey's cell phone records. The question is what do they reveal and can they bring any -- everyone one step closer to finding this little girl?

We're "Digging Deeper" tonight. In a moment we'll talk with Caylee's former babysitter, Holly Gagne.

But first joining us for more on the investigation is attorney and "In Session" anchor, Lisa Bloom. There's so many -- I mean you read through this search warrant and it is just a timeline of this case and it's one thing after another that Casey has said that just doesn't pan out.

LISA BLOOM, ANCHOR, "IN SESSION": Yes, she lied about where she worked. She lies about the name of her co-workers; she lies about the babysitter if she even exists, where she lives. She lies about where the babysitter's mother lives.

And she doesn't just do that, she takes the police on a wild goose chase to various locations, in Universal Studios, these apartments. At the last minute sometimes confesses, ok well, I lied, I don't actually work here. All the while her baby is missing.

COOPER: It's interesting the search warrant, it does say that she was claiming that she worked -- currently working in the Universal Studios and systematically the police find out that this is not the case.

And they even take her to Universal and she confidently takes them to a building, walks them down a hall, turns and stops at an office, and then finally, after I guess hours of claiming she worked there, reveals in fact she made it up.

BLOOM: Yes, exactly. And the police also talked to her friends and they talked to her parents and they all confirm that she's a habitual liar. Now does that make it better or does that make it worse? Maybe she's not just lying about the baby.

COOPER: Her supporters and her family say, look ok, so she's lied, she has a problem with lying. That doesn't make somebody a murderer. That doesn't make somebody --

BLOOM: Well, that doesn't make her a murderer. But when there's also a baby missing and she has no emotions, she doesn't seem to care to the police, she doesn't seem to have any interest in helping the police find the baby.

COOPER: Is that fair? I mean there have been plenty of cases where you know everyone reacts to trauma differently. Where parents have seemed unemotional, people condemned them for being unemotional and then turned out --

BLOOM: No, standing alone, of course, being unemotional it doesn't make her a murderer. But how about not giving any real assistance to the police in finding her baby?

In fact, giving them false clues; leading them off on false trails. You know, it's one thing to be a pathological liar when you're a teenager, you're going out with your friend; it's another thing when there's a 2-year-old who's missing and she's the only one who could have any information to help the police.

COOPER: What I find most confusing right now about the case is exactly what she is claiming has happened, because her family, her mother, her father, a former police officer, seemed to be supporting her belief that Caylee is quote-unquote "close."

BLOOM: Yes, but it's conflicting, though, isn't it? Because look at today where they're inviting the police back in to take some more of her clothes.

And remember, when this baby was missing a month ago, these parents, the grandparents of the little baby were telling the police that they were very concerned. That their daughter was a liar, that there was a smell of decomposition in the car. The grandmother said that.

So they've kind of gone back and forth and now I think they seem to be in the middle.

COOPER: I guess there is also one school of thought, which is that -- and again, this is speculation, that perhaps early on when they were critical of Casey, Casey was reacting in prison saying no one is supporting me, you guys aren't supporting me, I don't even know why I'm talking to you guys. I guess one argument could be that they're now supporting her in the hopes that this will make her comfortable and reveal more.

BLOOM: Well, and keep in mind, these are her parents. Scott Peterson's parents stood by him to the bitter end. They still stand by him notwithstanding the overwhelming evidence against him that a jury found beyond a reasonable doubt.

I mean typically the parents of a defendant are going to stand by that person. But they're also victim family members because that baby is their grandchild. So they're in a very, very difficult position.

COOPER: What we also learned in the search warrant today was that in the car, which belonged to Casey's mother, which Casey's mother had reported missing which turned out Casey had taken all along and was -- then abandoned and impounded and that's how Casey's mom found it back. She -- not only did she smell what she said smelled like a dead body, they found clothes of Casey's in there that the mother it's revealed in the search warrant actually washed and let back in Casey's room.

BLOOM: That's right, these are gray pants that belonged to Casey the mother and that her mother, the grandmother said, smelled bad. These gray pants are also the same pants that the father says, that she was wearing on the day that she left with the baby, the last time he saw Casey and Caylee together, the same gray pants.

The mother said they smelled bad, they were filthy and I washed them. You can read between the lines and imagine her telling this to the police now. She probably feels terribly that she washed them.

COOPER: June 15th, June 16th is the last confirmed sighting of little Caylee with Casey by both grandparents. Frankly, there's video from June 15 at a Father's Day event for Casey's mother's father. But there's also testimony from, and signed affidavits in the search warrant from other people who saw Casey separately days later saying -- and the story they were told was, "Oh Caylee is with the babysitter."

So, there is a timeline of Casey being around and with other people, but without Caylee in sight.

BLOOM: And seeming unconcerned. And Casey also told the police that she had some outcry witnesses; that's what they're called. People that she supposedly told that the baby was missing, the police couldn't find these people, there was no collaboration for that. So she's behaving very strangely in the days after that little girl was messing.

COOPER: All right, Lisa Bloom, I appreciate it, thanks very much.

BLOOM: Thanks.

COOPER: Up next, coming to Casey's defense, Holly Gagne, Caylee's former babysitter and friend who stands by Casey. We'll get her reaction to all the developments today and find out how she and the whole family are doing.

Also ahead, emotions run high after a police raid gone wrong.

(BEGIN VIDEO CLIP)

TRINITY TOMSIC, MAYOR CALVO'S WIFE: She came in, she gave me a big hug, and she said to me, she said you've -- if the police shot your dogs dead and did this to you, how can I trust them?

(END VIDEO CLIP)

COOPER: A mayor's wife talks about losing faith in police after a SWAT Team kills her family's dog; the story that have a lot of people outraged next.

(COMMERCIAL BREAK)

COOPER: This Saturday marks two months since this little girl has disappeared. Or at least Casey Anthony, the mother's daughter -- the little girl's mother says she disappeared. This Saturday is also Caylee's birthday; she's going to be three years old. There will likely be no celebration.

Caylee's mom is in jail, charged with child neglect and filing a false police report. She said she knows where Caylee is. She said Caylee is close. But she won't say where.

And other times she's claimed she has no idea where her child is. That's what is so frustrating to police and to many people watching this case. If Casey knows where her daughter is, why won't she say it and why has she seemingly lied so much to authorities?

With us now is Holly Gagne, a friend of the family. She's also Caylee's baby sitter. Holly, you're manning the volunteer center, trying to get people out there looking for this little girl. Are you getting a good response?

HOLLY GAGNE, CAYLEE ANTHONY'S FORMER BABYSITTER: We are. We have a lot of people come up and offer to hand out flyers. We do about a four-hour bloc, because it's hot down here in Florida. So we have had really great response with people.

COOPER: Is it harder because there are so many questions swirling about, you know, Caylee's mom and what she has said and hasn't said to get people to look out or do you hear that from people?

GAGNE: It's funny; it's the absolute opposite of that. No one comes up and says why is this girl doing that? Every person I've come in contact with has come up, put money in the jar, we keep a donation jar there. They've never asked, they've never -- they just said, what can I do to help?

COOPER: Right, you speak to Caylee's grandparents every day. And you said that they actually said they're more comfortable with her mother, with Casey in jail than free. Is that accurate, and if so, what do you think they meant by that?

GAGNE: That is accurate, Anderson. They are comfortable because they feel like there's a threat or there's been a threat put on their daughter's life, possibly their own life, and that they just think that she's better off there.

And with the media frenzy that's outside of their home, I was by there today, I couldn't even drive down the street. It's ridiculous how crazy it is. So they just like her right where she is right now.

COOPER: And what a lot of people find a hard time to understand and any light you can share on this would be appreciated by I think by a lot of people is just yes, there have been a lot of inconsistencies and outright lies in Casey's story. According to police, you read the search warrant; it's pretty devastating to her.

But what is your understanding, what's the family's understanding of exactly what Casey's position is now? She has said that she feels her daughter is close. Do you know what that means?

GAGNE: I don't know what it means. I don't know if she means close you know, geographically, if she means close at heart. But they truly feel that she's -- she has to protect her and that she can't tell everything that she knows.

So they -- and that's a lot of the reason why Cindy did not go and speak with her the other day at her scheduled visit because they just can't talk openly, because it's being recorded.

COOPER: Does -- logically, does that make sense to you? I mean, as a friend of this little girl, as a friend of the family?

GAGNE: Logically, no. I mean, I was listening to your reporter and I mean you're listening to it and I just think this is a runaway train. And we all want to get off. And I just go back to the person that I knew and that has been a part of my family and my home.

That doesn't mean that people can't make mistakes but I can't believe that she knows what's happened and that it would be a tragedy and that maybe it's death and that she would just keep torturing her parents.

I mean, she's in jail, so I just feel like, and they feel strongly that she is protecting her daughter or there is another scenario that they can't tell us at this time.

COOPER: And if they feel that and you feel that to a degree, even though she has clearly a record of just, I mean, outright lies.

GAGNE: Yes. She has blatantly lied. We definitely -- we don't dispute that. You know, as far as, you know, her job and different things like that I'm not quite sure but other things she's lied about they feel like it's because she's covering up, because of something else that her daughter's in danger.

And I know that it sounds so unbelievably crazy but when you know people and you know their character, it's not any more crazy to think that she would have something to do with her child's death. And that's where they stand.

COOPER: It's easy to criticize from the outside and I mean the bottom line is, and this becomes a media circus and has becomes as you said, cameras everywhere, it's important in all of this not to lose the bottom line fact, which is Caylee is missing and everything should be focused on finding this little girl.

What is she like? I mean you've baby sat for her. She just looks like an adorable little girl.

GAGNE: She is. She's just full of vinegar and spice and cinnamon and all the things that make females, females. She's a spitfire. And bright and George and Cindy, I mean, there are grandparents and then there are grandparents. And these people are the grandparents with the little potty chart on the refrigerator that, you know, has a sticker because she did what she was supposed to do.

And her bedroom is full of books and stuffed animals and it's just -- they're beautiful people and that's the kind of mother that Casey was. That's the mother that I saw. And so that's why all this is just so hard to believe.

COOPER: And to your knowledge no history of drugs? I mean is there a history of drugs? Because it seems like the mom was saying, Casey's mom was saying that she disappeared for five weeks.

GAGNE: Let me clarify that.

COOPER: Ok.

GAGNE: She did not disappear. I mean, that first 911 call, you know, Cindy had found out that her daughter -- her granddaughter had not been with her daughter so she reacted. They had an agreement at the beginning of June. George and Cindy were going on vacation. Ok? And Casey was going to take some time, go see her friend, go to the beach, do some things. There was never a falling out. There was never, I don't know where she is. Cindy spoke with Casey over that period of time, so, but when she would ask where Caylee was, it was, "Well she's here. She's there."

COOPER: Right.

GAGNE: So that's where the confusion comes in.

COOPER: Ok, Holly, it's good to have you on and I wish you the best in the search. I know that's your priority now. Thank you for being with us.

GAGNE: Thank you.

COOPER: A story now that's getting a lot of attention online and everywhere.

Frankly, the mayor of a small town outside Washington, D.C. wants the Justice Department to investigate a police raid last week at his own home.

(BEGIN VIDEO CLIP)

MAYOR CHEYE CALVO, BERWYN HEIGHTS, MARYLAND: I was in my boxer shorts literally when I was brought downstairs at gunpoint bound and forced to kneel on the floor. My mother-in-law was bound lying in the kitchen and then I noticed my two dead dogs lying in pools of their own blood.

(END VIDEO CLIP)

COOPER: That's Mayor Cheye Calvo of Berwyn Heights, Maryland. He was on CNN Newsroom today. Earlier he and his wife spoke at a highly emotional news conference.

(BEGIN VIDEO CLIP)

TOMSIC: A little girl came to our house after this happened the next day. I didn't know who she was. She didn't know us. But she saw us walking the dogs every day and waving at her and she came in. She gave me a big hug. And she said to me, she said, if the police shot your dogs dead and did this to you, how can I trust them?

(END VIDEO CLIP)

COOPER: Prince George's County police who oversaw the raid by sheriff's deputies stopped short of apologizing for it though they expressed sympathy for the dog killings.

The whole thing stemmed for me drug investigation apparently, a package of pot shipped to their home intended it seem to be intercepted by drug dealers before it got there. In other words authorities said there was no connection between the Calvos and the drugs. Next on "360" even old lizards can find love; the salacious details about this rare reptile ahead.

(COMMERCIAL BREAK)

COOPER: Randi tonight's "Shot" is about a randy lizard. Meet Henry. He's going to be 110 years old and he's actually related to dinosaurs. Henry is a tuatara, a rare species found off the New Zealand coast. Now scientists have spent decades trying to get Henry to mate. He's refused but then in slithered Mildred.

That's right she's around 80 and is another tuatara. Call it fate, call it love, Randi, call it kismet, call it what you will but Henry and Mildred, yes, they made sweet, sweet love and we're told Mildred has now laid 12 eggs.

KAYE: Oh yes.

COOPER: So who says you can't teach an old dog more new tricks? We hope to show and play about a little bit more like a "chica bang bang music" but apparently this is the only music we could find at the last second.

KAYE: And Anderson, apparently Henry is a cancer survivor too. He had a tumor removed. I know way too much about this guy.

COOPER: Yes, by the way, we can cut the new age music because it's not working.

KAYE: Yes.

COOPER: All right, time now for our "Beat 360 winners." They're here cue the cheesy music. There we go. Our daily challenge to viewers to show up our staffers by coming up with a better caption than the one we've come up with.

So tonight's picture Senator Barack Obama speaking via satellite TV to members of the American Federation of State, County and Municipal Employees in San Francisco last week. Staff winner, Julia. Her caption, "Obama doing little to defuse allegations that he's getting a big head."

KAYE: Not bad.

COOPER: Our viewer winner is Bob from Massillon, Ohio, his caption, "I AM the biggest celebrity in the world." Bob, your "Beat 360" t- shirt is on the way. Congratulations.

You can check out all the entries we received. Play along tomorrow, by going to our Website ac360.com.

That does it for this edition of "360." Thanks for watching.

Larry Kings starts right now.