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Washington, D.C. Public Schools Locked Down Due to Series of Bomb Threats Against Entire System

Aired March 19, 2004 - 10:00   ET

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


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


DARYN KAGAN, CNN ANCHOR: We have big news day here. Good morning everyone. From CNN headquarters in Atlanta I'm Daryn Kagan.
First up is the security situation in the nation's capital. All 165 Washington, D.C. public schools are currently locked down, because of a series of bomb threats against the entire school system. A live report is just ahead.

Secretary of State Colin Powell is in Baghdad today. He is marking the first anniversary of the Iraq War. Due to security concerns, it was an unannounced stop on his trip to the region. Powell's appearance at a news conference prompted a walkout by some journalists; they're protesting the death of two Arab colleagues allegedly shot yesterday by U.S. soldiers.

The Polish president reportedly has reassured President Bush that Poland will not pull out of the coalition in Iraq. That word comes from a top aide to the Polish leader. The clarification follows earlier comments by the Polish president that he had been misled about weapons of mass destruction in Iraq. 2400 Polish peacekeepers are currently deployed in Iraq.

Taiwan's President Chen Shui-bian has been released from the hospital, after surviving an assassination attempt earlier today, while campaigning in his hometown. The President Chen was shot in the stomach. The Vice President Annette Lu was slightly wounded as well. The gunman is still at large. Tomorrow's presidential election in Taiwan is still on. China has been highly critical of the Taiwanese leader, but it has made only brief mention of the incident.

And in New York, jurors resume deliberations this morning in the trial of two former Tyco executives. Dennis Koslowski and Mark Schwartz are accused of giving $600 million from the company. If convicted each could face up to 30 years in prison.

It was one year ago today that U.S. led forces launched a war for the heart and soul of a free Iraq. Today Pakistani troops are thought to be closing in on the man described as the brains of al Qaeda. Pakistan's government says that its forces have surrounded some 200 al Qaeda fighters, and it is believed they are fighting to the death to project Ayman al-Zawahiri.

Our Ash-har Quraishi joins us via videophone from Islamabad.

Hello. ASH-HAR QURAISHI, CNN CORRESPONDENT: Good morning, Daryn. Well, another day of fierce fighting according to military officials in this area South Waziristan in the northwest of Pakistan. Now, they gave us a briefing today and gave us some of the operational details on what's been going on there. They say they are still facing stiff resistance from these hundreds of al Qaeda fighters in this area. They've set up two cordons, an inner cordon and outer cordon. They're basically covering an area of about 100 square miles in this area of northwest Pakistan.

And they say they've been coming under fire from these militants. They've also been hit by rocket attacks. But they've returning fire, heavy pounding with artillery gunfire as well as RPGs. Now, there have been a few incidents over the last 24-hours that we've become aware of, including some 10 people trying to escape this area. Officials say that they opened fire on those people and killed one of them. The other nine fled back into these compounds.

So this is an on going effort, they say. They are continuing these operations. They say the mission will not be accomplished until they get these people, quote, "dead or alive." This as their intelligence officials telling us that they believe Ayman al-Zawahiri is inside this area, in this fight, they say being protected by hundreds of al Qaeda fighters. And they say that this is a fierce battle that's been continuing, and that they are holding their positions at this point.

KAGAN: Ash-har Quraishi reporting from Islamabad, thank you for that.

Well, assuming that the Pakistani forces have indeed cornered this man, what would his capture or death mean for the war on terror in general and the campaign against al Qaeda in particular?

Joining us an expert in terrorism. Jim Walsh an executive director at Harvard University's Belfor Center for Science and International Affairs.

Thanks for being with us.

JIM WALSH, EXEC. DIR., BELFOR CTR. FOR SCIENCE & INT'L AFFAIRS: Good morning, Daryn.

KAGAN: The significance that you see of corner -- if this is indeed the case of cornering al-Zawahiri?

WALSH: Well, it's certainly a welcomed development. We want to bring him to justice. And hopefully we'll get not only him, but what sounds like a large contingent of al Qaeda forces around him. Now, then if you step back and say what's the effect on the broader war of terrorism? There, I think it's probably more limited. As Condoleezza Rice said this morning on CNN, and as Secretary Rumsfeld and others have said this week, al Qaeda has changed. It's not only just about al-Zawahiri and bin Laden. It's turned into a movement. And that movement often acts on its own. And so we still have a dangerous problem to contend with. KAGAN: Yes, I want to talk about that bigger picture a little bit more in just a moment.

First of all, do you think if you get closer to al-Zawahiri, is that leading you to Osama bin Laden? Or is that not a reasonable step in logic?

WALSH: Well, that's a good question. I think it is a reasonable step in logic. In other words, I think we can be a little more confident than we were four days ago that we're getting closer to bin Laden. Does that mean it's likely we're going to get bin Laden? That we're going to get him tomorrow or next week? No.

But I think it should give us a little more confidence. It tells us, first of all, that that Pakistani offensive, with all those troops -- 70,000 troops is able to accomplish something there. And that our -- presumably our intelligence is getting better. And I think it makes sense that bin Laden is somewhere in that Pakistani/Afghan border. So I think it should give us some more confidence, just not too much confidence.

KAGAN: And then finally, a point you were just making about not having too much confidence. Just if you get the No. 1 and No. 2 of al Qaeda, that does not make this organization, really much more of a movement, go away and neither does a threat go away.

WALSH: Absolutely. And you know, it's good news and bad news. There is a tradeoff here. Good news is, first of all, you have those two guys, which is good. And also, you've hurt the central command of the organization. That makes them less capable.

But what you have instead is lots of little al Qaedas. Now again, they're less capable than one big al Qaeda, but they're still plenty capable of attacking. And we've seen that in Saudi Arabia and Morocco and Spain. And there are more of them and more of them don't like the U.S. and the western allies. So I think that's a serious problem.

KAGAN: Jim Walsh with the Belfor Center from Harvard. Thank you for your time, sir. Appreciate it.

WALSH: Thank you, Daryn.

KAGAN: Let's talk about Spain a little bit more. A judge in there has charged five suspects in last week's terrorist bombings of three Madrid commuter trains. Three Moroccans are charged with 190 murders, the 12 other victims have not been identified yet. They are also charged with the attempted murders of more than 1400 people who were wounded in the attack. Two other suspects, both Indian, face terror charges. All five declared their innocence. Six other potential suspects were cleared yesterday, including an Algerian man.

President Bush will mark the anniversary of the Iraq War with a speech that begins at the top of the next hour. CNN will bring that to you live. Well, no one really knew what to expect one year ago. Looking back at the opening salvo of the war, Navy warships in the Persian Gulf unleashing Cruise missiles on targets in Baghdad and other locations. Ground forces followed a short time later. And by April 9 they were in control of the capitol.

Our senior international correspondent Walter Rodgers had a front row seat for the ground assault, racing with the 3-7 Calvary through the desert to Baghdad. And right back in Baghdad one year later -- Walter.

WALT RODGERS, CNN SENIOR INT'L CORRESPONDENT: Hello, Daryn. The irony is that one year later, the U.S. Secretary of State Colin Powell is in the region again, still trying to justify the American-led attack on Baghdad to the international community. Part of the problem, of course, is that there, he still faces considerable skepticism.

He held a news conference here today. There were some very tough questions. One was, when are the Americans going to be able to turn the corner on the rising tide of violence in Baghdad and the rest of Iraq, the suicide bombings, the drive-by shootings? The secretary's answer seemed to be that, that will come when an embryonic Iraqi security force comes online. But the secretary admitted there was a spike in recent attacks here and it is a problem.

Perhaps the toughest question came from a reporter who quoted the French Foreign Minister Dominique de Villepin, who is supposed to have said that terrorism did not exist in Iraq until the Americans invaded this country. And de Villepin went on to say that the world was -- is less safe now. The secretary of state had little to say on that, except he only tried to defend his boss, President Bush.

(BEGIN VIDEO CLIP)

COLIN POWELL, SECRETARY OF STATE: This is not the time to say, let's stop what we're doing and pull back. This is the time to redouble our efforts in every way. Law enforcement activities, intelligence activities and deal with this threat to the civilized world, and not run and hide and think that it won't come and get us. It will come and get us.

(END VIDEO CLIP)

ROGERS: The secretary's most awkward moment at that news conference was at the very beginning, when Iraqi journalists stood up, read a statement of protest and then walked out. The protest was over the fact that yesterday at a Baghdad check point; two Arab television journalists were shot by U.S. military personnel at that checkpoint. Again, it was not a happy news conference for the secretary of state.

And probably a year later it's not that happy for the Iraqis either. Several thousands were out on the streets of Baghdad today, protesting the continuing American occupation of their country. They want the Americans out. They were shouting no to Saddam Hussein and no to America. Again, very difficult day for the United States a year later in this part of the world -- Daryn.

KAGAN: I want to ask you a little bit more about that protest within the news conference. This was an unannounced visit by the secretary of state. As you said, someone stood up and had a statement to read. So did the journalists have some kind of advanced notice that Secretary Powell would be there making an appearance?

ROGERS: Yes, that's very clear. Over the past few days, remembers of the Iraqi Governing Council canceled their appointments for today, assuming they were going to get an opportunity to meet with the American secretary of state. He was in South Asia. He had been in India, Pakistan, and Afghanistan. It was generally assumed here, and point of fact, we all knew that he was coming. We just couldn't say anything about it for security reasons. So, yes, it was generally a given the secretary was coming here. And when everyone knew, it was announced the secretary was going to have a news conference, the Iraqi journalists used it as an opportunity to rail out against the United States.

KAGAN: An opportunity seized. Uncomfortable moment for the secretary of state. Walter Rodgers in Baghdad, thank you for that.

As we mentioned at the top of the newscast, public schools in Washington, D.C. are locked down at this hour. And there's a massive security sweep going under way.

Our Kelli Arena joins us from Washington. And she has the latest about the threat -- Kelli.

KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): Daryn, from what we could tell right now, of course, the priority here for law enforcement is making sure that the schools are clean, the students are safe. And so D.C. police are going through each and every school in the district to make sure that there are no explosives.

But for some context here, Daryn the threat that came in, there were six separate threats that came in, in very different ways: over the Internet, over the telephone. One even came in over a line that's used by the deaf. Made their way to the D.C. police by about 6:00 this morning. The threat indicated there were five explosive devices that were supposed to go off in five separate schools, although the schools themselves were not named.

There is no way at this point to determine whether or not this threat is even credible. Law enforcement officials say they don't know what country the threat came in from, when the threat initially was first sent. They also point out that in the district at least, because I spoke to some officials that deal specifically with the district, they said at -- usually springtime they get a lot -- they get a big increase in bomb threats that are hoaxes that involve schools. So this could very well be one law enforcement official speculated, you know, a prank pulled by some students. Although it's not taking away from the seriousness that this could possibly be something. And that's why those schools are in lockdown, and that's why they're checking. So two track investigation. One, make sure the kids are okay. The second, let's find out where the threat came from. And find out if it was credible or not.

KAGAN: All right. Kelli Arena, we will check back with you as you track the story from Washington, D.C. Appreciate it.

ARENA: Sure thing.

KAGAN: We go from Saddam's palace to your household. You will not believe what is up for grabs on eBay these days.

The woman who challenged the "governator" says the war in Iraq was successful at least in one regard. Find out what she means when Arianna Huffington joins us a little bit later this hour.

And the madness is on. How are your brackets doing? Tournament update coming up, we have Bill Walton with us.

(COMMERCIAL BREAK)

KAGAN: March Madness is under way, and Day 1 of the NCAA tournament has claimed its first victims. One of them, 12-seat Manhattan routed Florida, a one-time powerhouse that just three months ago enjoyed the nation's top rank. The Jaspers are just bristling at the word "upset," saying they came into the tournament knowing they could easily topple Florida.

Tenth seated Nevada pulled off the day's other upset defeating Michigan State 72-66. Actually another one -- of course, Manhattan and Florida, Seton Hall over Arizona.

Joining us to help break down the tournament is someone who has been at the center, literally, 1973 he led UCLA to the championship with a final four performance, many consider to be the greatest ever. Bill Walton also starred in the NBA both as player, now as analyst. If it has something to do with hoops the man has done it and has been a superstar.

Bill, good morning.

BILL WALTON, NBA ANALYST: Always a pleasure, Daryn. Reporting today from New York City, where the snow is pounding down. But I just came from the NBA store where we announced a partnership between the NBA and the History Channel. And that's why I am wearing Mr. Mike Bibby's jersey, the throw back retro craze that's taking over all of the sporting world right now. I played in 1972 with Mike Bibby's dad on the undefeated, record setting UCLA Bruin team that also won a championship.

KAGAN: We're going to talk retro in just a minute.

First, I want to talk brackets and talk the tournament. Bill, something's wrong. No UCLA in the tournament. You're sans alma mater; Arizona gets tossed in the first round. Are you crying or are you still in it? WALTON: It's so sad.

KAGAN: I know.

WALTON: This is very, very disappointing. But the Bruins did, Daryn, they did qualify for the first round of the Pac-10 tournament. So we're really excited, really proud. Hopefully Ben Howland can get things going for the mighty UCLA Bruins. There's a lot of us who are extremely disappointed and frustrated right now.

KAGAN: I know. So we'll go to happier times. Hey, I was pretty impressed this morning. We got your final four picks. This is what made my day.

WALTON: Well, Duke is the best program right now. But they've got a lot of injury problems. Okafor and Connecticut, they're my favorite team this year. But Okafor has got the stress fracture on his back, so that's a major problem. Tubby Smith down in Kentucky, he's got a real team. Gerald Fitch is a nice solid player. They've got a real chance. I'd really like to see Oklahoma State and Eddie Sutton get the job done. While we're talking retro and throwback, John Lucas, a contemporary of mine, his son is a star guard for the Oklahoma State Cowboys. So that would be a very nice final four. Duke, Connecticut, Kentucky and Oklahoma State.

KAGAN: Well -- but here's the thing, Bill. See, we've got your final four and I've got my final brackets here. This made my day; we have almost the exact same final four. Except I went with the alma mater, Stanford, where you went to law school. You are selling out, Bill. You went with UConn coming out of Phoenix instead of the Stanford Cardinal.

WALTON: You know, Stanford is a very good team. Mike Montgomery done one of the really outstanding jobs in this year's college season. But they don't have the one player who can match up with Emeka Okafor. And Not only is Emeka Okafor a talented basketball player off the court, he is the Academic All American Player of the Year as well. So that combination, I think, would separate the Huskies from the Cardinal.

KAGAN: All right. You're substantiating your claim, making your argument as if you were back at Stanford Law School. I'll give you that.

Let's talk retro here for a moment and this the program you're talking about the NBA going retro. And also there's going to be a program on the History Channel.

WALTON: The NBA and History Channel have partnered up to bring the past alive. And there's nothing like the NBA for people's dreams coming true. And the opportunity for the fans to connect with the rich tradition and history of the NBA is so special and unique. And what they're going to do is come out with two special unique programs this spring. It's going to chronicle that tremendous history and allow the fans to get involved. Because if we don't learn from what has gone on before, we are doomed to repeat the mistakes of the past. And people like: Bill Russell, Red Auerbach, Karim Abdul Jabar, Wilt Chamberlain; all the societal driving forces that have gotten us to where we are today in the NBA, then it's just going to be a very special and productive time. And as all the players today celebrate the richness of the game, they can only look back and thank all the pioneers that made it all happen.

KAGAN: Right, a lot of people bemoaning the state of the NBA today. And you know, back in the day when you played, people actually went to college and then went on to hoops. Do you think back now, and think if it was your time now, you would have gone straight to the NBA or do you relish that time in college?

WALTON: The NBA is fantastic but that's something for adults. College, there's nothing like going to college. And I had the privilege of playing for John Wooden, one of six Hall of Fame coaches. And what I learned from him, I was a history major at UCLA. And the lessons of life that I picked up, not only from John Wooden but the chancellor at UCLA Charles Young, J.D. Morgan, our athletic director, all my classmates, my professors. Those are the experiences that really shape your life. I would not trade that for anything in the world. The NBA was the next step after college. It's very sad that these guys are passing up on that experience.

KAGAN: Well, it's all good. Your experience, excellent. And thanks for sharing some of your expertise with us this morning. And thanks for your final four picks. Thanks, Bill.

WALTON: Thank you, Daryn.

KAGAN: I appreciate it.

Bill Walton joining us from new York city.

The pictures we are about to show you might be a little bit painful to look at but there is a happy ending. Promise you on that one. Find out what happened to this trooper, just a little bit later on CNN LIVE TODAY.

And up next, are you ready for your "Top Five Tips?" Gerri is. She has a preview.

Hi, Gerr.

GERRI WILLIS, CNNFN PERSONAL FINANCE EDITOR: Hey, Daryn. Good to see you. Have you been shopping for a mortgage? Then you know all the new terms: piggybacks, I/Os, miss a payments. We're going to tell you which ones are good, which are bad when CNN LIVE TODAY continues.

(COMMERCIAL BREAK)

KAGAN: Let's talk mortgages. There are some popular options out there. There are also pitfalls and compromises in today's "Top Five Tips." For that let's bring in our CNNfn personal finance correspondent Gerri Willis.

Gerri, good morning.

WILLIS: Hey, Daryn. Good to see you. Tip No. 1, check out the piggybacks. I don't know if you have ever gotten a mortgage, but you often find, prices on homes have risen so much, getting together that 20 percent down payment is really tough. If you can't, you might consider a piggyback loan. And that's because by getting this special loan you can get around paying something called private mortgage insurance. That's what you pay if you can't put 20 percent down.

The piggyback is actually two loans. It's a standard first mortgage and also a home equity line of credit. Now, the downside, you limit your borrowing down the line. And you also have to pay a little higher interest for that home equity line of credit. But at the end of the day; at least you're not paying the PMI.

KAGAN: What about the interest only option.

WILLIS: Also not a big favorite for me. You know, this is really designed as a niche product for a small number of people, who maybe are going to stay in their home a very short period of time, or maybe they only get paid in a lump sum once a year; most of their income coming at the end of the year, for example. But interest-only means that you pay interest only for a period of time and you don't even touch the principle. The downside obviously to this is you're not building up principle in your house. So it could be a real problem if you have to sell your house. Maybe you're going to end up owing more than the house is worth. That could be a real problem -- Daryn.

KAGAN: Some people looking to get in with a fixer upper in their neighborhood.

WILLIS: Yes. You know, this is one of my favorites. This is really interesting. You know, sometimes people want to buy a house that's in a real mess. They really need to do upgrades right away. And it can be difficult to finance that whole thing except for this new loan type called the Fixer Upper. You get one loan to cover, not just the house itself, but all the renovations.

Big downside here, Daryn, you've got to spend a lot of time with your lender. They're going to spend a lot of time looking at the deals, even the contractors themselves. So it becomes a teal relationship with the lender, but at the end of the day you get a fixed up house.

KAGAN: What about miss a payment loans?

WILLIS: Yes. You know, this is interesting, too. This is one of those innovations you wonder; hmm, did you really need that? You can pay an extra $200 couple times a year if you're going to miss a payment. Miss a payment on that mortgage. But of course you eventually have to pay the amount. That you know, particular month's PIM doesn't go away. You just add on to the end of your loan. So you end up paying even more for your house and you've got to pay that fee for missing the payment. So I'm not sure it's worth it for most people. KAGAN: And then finally, buy what you need. What do you mean by that?

WILLIS: You know, a lot of people end up getting more mortgages than they need. They pay for some of these bells and whistles I just described. And at the end of the day it comes out of their pocket. Not a good thing. As usual when you're shopping for any consumer product, you want to shop around, check out all the offers.

First figure out how much fixed rate loan you need, how much you can afford to put down, what the term is you want. And then go start talking to lenders to figure out what is the best deal for you -- Daryn.

KAGAN: Gerri Willis, You have a great weekend. Thanks for the tips, appreciate it.

WILLIS: Thank you Daryn.

KAGAN: Much more news ahead including heavy fighting, which is continuing this morning near the Pakistan/Afghan border, where al Qaeda's No. 2 man is believed to be cornered. Are his days numbered? We'll get an update from the Pentagon next on CNN LIVE TODAY.

(COMMERCIAL BREAK)

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of Bomb Threats Against Entire System>


Aired March 19, 2004 - 10:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: We have big news day here. Good morning everyone. From CNN headquarters in Atlanta I'm Daryn Kagan.
First up is the security situation in the nation's capital. All 165 Washington, D.C. public schools are currently locked down, because of a series of bomb threats against the entire school system. A live report is just ahead.

Secretary of State Colin Powell is in Baghdad today. He is marking the first anniversary of the Iraq War. Due to security concerns, it was an unannounced stop on his trip to the region. Powell's appearance at a news conference prompted a walkout by some journalists; they're protesting the death of two Arab colleagues allegedly shot yesterday by U.S. soldiers.

The Polish president reportedly has reassured President Bush that Poland will not pull out of the coalition in Iraq. That word comes from a top aide to the Polish leader. The clarification follows earlier comments by the Polish president that he had been misled about weapons of mass destruction in Iraq. 2400 Polish peacekeepers are currently deployed in Iraq.

Taiwan's President Chen Shui-bian has been released from the hospital, after surviving an assassination attempt earlier today, while campaigning in his hometown. The President Chen was shot in the stomach. The Vice President Annette Lu was slightly wounded as well. The gunman is still at large. Tomorrow's presidential election in Taiwan is still on. China has been highly critical of the Taiwanese leader, but it has made only brief mention of the incident.

And in New York, jurors resume deliberations this morning in the trial of two former Tyco executives. Dennis Koslowski and Mark Schwartz are accused of giving $600 million from the company. If convicted each could face up to 30 years in prison.

It was one year ago today that U.S. led forces launched a war for the heart and soul of a free Iraq. Today Pakistani troops are thought to be closing in on the man described as the brains of al Qaeda. Pakistan's government says that its forces have surrounded some 200 al Qaeda fighters, and it is believed they are fighting to the death to project Ayman al-Zawahiri.

Our Ash-har Quraishi joins us via videophone from Islamabad.

Hello. ASH-HAR QURAISHI, CNN CORRESPONDENT: Good morning, Daryn. Well, another day of fierce fighting according to military officials in this area South Waziristan in the northwest of Pakistan. Now, they gave us a briefing today and gave us some of the operational details on what's been going on there. They say they are still facing stiff resistance from these hundreds of al Qaeda fighters in this area. They've set up two cordons, an inner cordon and outer cordon. They're basically covering an area of about 100 square miles in this area of northwest Pakistan.

And they say they've been coming under fire from these militants. They've also been hit by rocket attacks. But they've returning fire, heavy pounding with artillery gunfire as well as RPGs. Now, there have been a few incidents over the last 24-hours that we've become aware of, including some 10 people trying to escape this area. Officials say that they opened fire on those people and killed one of them. The other nine fled back into these compounds.

So this is an on going effort, they say. They are continuing these operations. They say the mission will not be accomplished until they get these people, quote, "dead or alive." This as their intelligence officials telling us that they believe Ayman al-Zawahiri is inside this area, in this fight, they say being protected by hundreds of al Qaeda fighters. And they say that this is a fierce battle that's been continuing, and that they are holding their positions at this point.

KAGAN: Ash-har Quraishi reporting from Islamabad, thank you for that.

Well, assuming that the Pakistani forces have indeed cornered this man, what would his capture or death mean for the war on terror in general and the campaign against al Qaeda in particular?

Joining us an expert in terrorism. Jim Walsh an executive director at Harvard University's Belfor Center for Science and International Affairs.

Thanks for being with us.

JIM WALSH, EXEC. DIR., BELFOR CTR. FOR SCIENCE & INT'L AFFAIRS: Good morning, Daryn.

KAGAN: The significance that you see of corner -- if this is indeed the case of cornering al-Zawahiri?

WALSH: Well, it's certainly a welcomed development. We want to bring him to justice. And hopefully we'll get not only him, but what sounds like a large contingent of al Qaeda forces around him. Now, then if you step back and say what's the effect on the broader war of terrorism? There, I think it's probably more limited. As Condoleezza Rice said this morning on CNN, and as Secretary Rumsfeld and others have said this week, al Qaeda has changed. It's not only just about al-Zawahiri and bin Laden. It's turned into a movement. And that movement often acts on its own. And so we still have a dangerous problem to contend with. KAGAN: Yes, I want to talk about that bigger picture a little bit more in just a moment.

First of all, do you think if you get closer to al-Zawahiri, is that leading you to Osama bin Laden? Or is that not a reasonable step in logic?

WALSH: Well, that's a good question. I think it is a reasonable step in logic. In other words, I think we can be a little more confident than we were four days ago that we're getting closer to bin Laden. Does that mean it's likely we're going to get bin Laden? That we're going to get him tomorrow or next week? No.

But I think it should give us a little more confidence. It tells us, first of all, that that Pakistani offensive, with all those troops -- 70,000 troops is able to accomplish something there. And that our -- presumably our intelligence is getting better. And I think it makes sense that bin Laden is somewhere in that Pakistani/Afghan border. So I think it should give us some more confidence, just not too much confidence.

KAGAN: And then finally, a point you were just making about not having too much confidence. Just if you get the No. 1 and No. 2 of al Qaeda, that does not make this organization, really much more of a movement, go away and neither does a threat go away.

WALSH: Absolutely. And you know, it's good news and bad news. There is a tradeoff here. Good news is, first of all, you have those two guys, which is good. And also, you've hurt the central command of the organization. That makes them less capable.

But what you have instead is lots of little al Qaedas. Now again, they're less capable than one big al Qaeda, but they're still plenty capable of attacking. And we've seen that in Saudi Arabia and Morocco and Spain. And there are more of them and more of them don't like the U.S. and the western allies. So I think that's a serious problem.

KAGAN: Jim Walsh with the Belfor Center from Harvard. Thank you for your time, sir. Appreciate it.

WALSH: Thank you, Daryn.

KAGAN: Let's talk about Spain a little bit more. A judge in there has charged five suspects in last week's terrorist bombings of three Madrid commuter trains. Three Moroccans are charged with 190 murders, the 12 other victims have not been identified yet. They are also charged with the attempted murders of more than 1400 people who were wounded in the attack. Two other suspects, both Indian, face terror charges. All five declared their innocence. Six other potential suspects were cleared yesterday, including an Algerian man.

President Bush will mark the anniversary of the Iraq War with a speech that begins at the top of the next hour. CNN will bring that to you live. Well, no one really knew what to expect one year ago. Looking back at the opening salvo of the war, Navy warships in the Persian Gulf unleashing Cruise missiles on targets in Baghdad and other locations. Ground forces followed a short time later. And by April 9 they were in control of the capitol.

Our senior international correspondent Walter Rodgers had a front row seat for the ground assault, racing with the 3-7 Calvary through the desert to Baghdad. And right back in Baghdad one year later -- Walter.

WALT RODGERS, CNN SENIOR INT'L CORRESPONDENT: Hello, Daryn. The irony is that one year later, the U.S. Secretary of State Colin Powell is in the region again, still trying to justify the American-led attack on Baghdad to the international community. Part of the problem, of course, is that there, he still faces considerable skepticism.

He held a news conference here today. There were some very tough questions. One was, when are the Americans going to be able to turn the corner on the rising tide of violence in Baghdad and the rest of Iraq, the suicide bombings, the drive-by shootings? The secretary's answer seemed to be that, that will come when an embryonic Iraqi security force comes online. But the secretary admitted there was a spike in recent attacks here and it is a problem.

Perhaps the toughest question came from a reporter who quoted the French Foreign Minister Dominique de Villepin, who is supposed to have said that terrorism did not exist in Iraq until the Americans invaded this country. And de Villepin went on to say that the world was -- is less safe now. The secretary of state had little to say on that, except he only tried to defend his boss, President Bush.

(BEGIN VIDEO CLIP)

COLIN POWELL, SECRETARY OF STATE: This is not the time to say, let's stop what we're doing and pull back. This is the time to redouble our efforts in every way. Law enforcement activities, intelligence activities and deal with this threat to the civilized world, and not run and hide and think that it won't come and get us. It will come and get us.

(END VIDEO CLIP)

ROGERS: The secretary's most awkward moment at that news conference was at the very beginning, when Iraqi journalists stood up, read a statement of protest and then walked out. The protest was over the fact that yesterday at a Baghdad check point; two Arab television journalists were shot by U.S. military personnel at that checkpoint. Again, it was not a happy news conference for the secretary of state.

And probably a year later it's not that happy for the Iraqis either. Several thousands were out on the streets of Baghdad today, protesting the continuing American occupation of their country. They want the Americans out. They were shouting no to Saddam Hussein and no to America. Again, very difficult day for the United States a year later in this part of the world -- Daryn.

KAGAN: I want to ask you a little bit more about that protest within the news conference. This was an unannounced visit by the secretary of state. As you said, someone stood up and had a statement to read. So did the journalists have some kind of advanced notice that Secretary Powell would be there making an appearance?

ROGERS: Yes, that's very clear. Over the past few days, remembers of the Iraqi Governing Council canceled their appointments for today, assuming they were going to get an opportunity to meet with the American secretary of state. He was in South Asia. He had been in India, Pakistan, and Afghanistan. It was generally assumed here, and point of fact, we all knew that he was coming. We just couldn't say anything about it for security reasons. So, yes, it was generally a given the secretary was coming here. And when everyone knew, it was announced the secretary was going to have a news conference, the Iraqi journalists used it as an opportunity to rail out against the United States.

KAGAN: An opportunity seized. Uncomfortable moment for the secretary of state. Walter Rodgers in Baghdad, thank you for that.

As we mentioned at the top of the newscast, public schools in Washington, D.C. are locked down at this hour. And there's a massive security sweep going under way.

Our Kelli Arena joins us from Washington. And she has the latest about the threat -- Kelli.

KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): Daryn, from what we could tell right now, of course, the priority here for law enforcement is making sure that the schools are clean, the students are safe. And so D.C. police are going through each and every school in the district to make sure that there are no explosives.

But for some context here, Daryn the threat that came in, there were six separate threats that came in, in very different ways: over the Internet, over the telephone. One even came in over a line that's used by the deaf. Made their way to the D.C. police by about 6:00 this morning. The threat indicated there were five explosive devices that were supposed to go off in five separate schools, although the schools themselves were not named.

There is no way at this point to determine whether or not this threat is even credible. Law enforcement officials say they don't know what country the threat came in from, when the threat initially was first sent. They also point out that in the district at least, because I spoke to some officials that deal specifically with the district, they said at -- usually springtime they get a lot -- they get a big increase in bomb threats that are hoaxes that involve schools. So this could very well be one law enforcement official speculated, you know, a prank pulled by some students. Although it's not taking away from the seriousness that this could possibly be something. And that's why those schools are in lockdown, and that's why they're checking. So two track investigation. One, make sure the kids are okay. The second, let's find out where the threat came from. And find out if it was credible or not.

KAGAN: All right. Kelli Arena, we will check back with you as you track the story from Washington, D.C. Appreciate it.

ARENA: Sure thing.

KAGAN: We go from Saddam's palace to your household. You will not believe what is up for grabs on eBay these days.

The woman who challenged the "governator" says the war in Iraq was successful at least in one regard. Find out what she means when Arianna Huffington joins us a little bit later this hour.

And the madness is on. How are your brackets doing? Tournament update coming up, we have Bill Walton with us.

(COMMERCIAL BREAK)

KAGAN: March Madness is under way, and Day 1 of the NCAA tournament has claimed its first victims. One of them, 12-seat Manhattan routed Florida, a one-time powerhouse that just three months ago enjoyed the nation's top rank. The Jaspers are just bristling at the word "upset," saying they came into the tournament knowing they could easily topple Florida.

Tenth seated Nevada pulled off the day's other upset defeating Michigan State 72-66. Actually another one -- of course, Manhattan and Florida, Seton Hall over Arizona.

Joining us to help break down the tournament is someone who has been at the center, literally, 1973 he led UCLA to the championship with a final four performance, many consider to be the greatest ever. Bill Walton also starred in the NBA both as player, now as analyst. If it has something to do with hoops the man has done it and has been a superstar.

Bill, good morning.

BILL WALTON, NBA ANALYST: Always a pleasure, Daryn. Reporting today from New York City, where the snow is pounding down. But I just came from the NBA store where we announced a partnership between the NBA and the History Channel. And that's why I am wearing Mr. Mike Bibby's jersey, the throw back retro craze that's taking over all of the sporting world right now. I played in 1972 with Mike Bibby's dad on the undefeated, record setting UCLA Bruin team that also won a championship.

KAGAN: We're going to talk retro in just a minute.

First, I want to talk brackets and talk the tournament. Bill, something's wrong. No UCLA in the tournament. You're sans alma mater; Arizona gets tossed in the first round. Are you crying or are you still in it? WALTON: It's so sad.

KAGAN: I know.

WALTON: This is very, very disappointing. But the Bruins did, Daryn, they did qualify for the first round of the Pac-10 tournament. So we're really excited, really proud. Hopefully Ben Howland can get things going for the mighty UCLA Bruins. There's a lot of us who are extremely disappointed and frustrated right now.

KAGAN: I know. So we'll go to happier times. Hey, I was pretty impressed this morning. We got your final four picks. This is what made my day.

WALTON: Well, Duke is the best program right now. But they've got a lot of injury problems. Okafor and Connecticut, they're my favorite team this year. But Okafor has got the stress fracture on his back, so that's a major problem. Tubby Smith down in Kentucky, he's got a real team. Gerald Fitch is a nice solid player. They've got a real chance. I'd really like to see Oklahoma State and Eddie Sutton get the job done. While we're talking retro and throwback, John Lucas, a contemporary of mine, his son is a star guard for the Oklahoma State Cowboys. So that would be a very nice final four. Duke, Connecticut, Kentucky and Oklahoma State.

KAGAN: Well -- but here's the thing, Bill. See, we've got your final four and I've got my final brackets here. This made my day; we have almost the exact same final four. Except I went with the alma mater, Stanford, where you went to law school. You are selling out, Bill. You went with UConn coming out of Phoenix instead of the Stanford Cardinal.

WALTON: You know, Stanford is a very good team. Mike Montgomery done one of the really outstanding jobs in this year's college season. But they don't have the one player who can match up with Emeka Okafor. And Not only is Emeka Okafor a talented basketball player off the court, he is the Academic All American Player of the Year as well. So that combination, I think, would separate the Huskies from the Cardinal.

KAGAN: All right. You're substantiating your claim, making your argument as if you were back at Stanford Law School. I'll give you that.

Let's talk retro here for a moment and this the program you're talking about the NBA going retro. And also there's going to be a program on the History Channel.

WALTON: The NBA and History Channel have partnered up to bring the past alive. And there's nothing like the NBA for people's dreams coming true. And the opportunity for the fans to connect with the rich tradition and history of the NBA is so special and unique. And what they're going to do is come out with two special unique programs this spring. It's going to chronicle that tremendous history and allow the fans to get involved. Because if we don't learn from what has gone on before, we are doomed to repeat the mistakes of the past. And people like: Bill Russell, Red Auerbach, Karim Abdul Jabar, Wilt Chamberlain; all the societal driving forces that have gotten us to where we are today in the NBA, then it's just going to be a very special and productive time. And as all the players today celebrate the richness of the game, they can only look back and thank all the pioneers that made it all happen.

KAGAN: Right, a lot of people bemoaning the state of the NBA today. And you know, back in the day when you played, people actually went to college and then went on to hoops. Do you think back now, and think if it was your time now, you would have gone straight to the NBA or do you relish that time in college?

WALTON: The NBA is fantastic but that's something for adults. College, there's nothing like going to college. And I had the privilege of playing for John Wooden, one of six Hall of Fame coaches. And what I learned from him, I was a history major at UCLA. And the lessons of life that I picked up, not only from John Wooden but the chancellor at UCLA Charles Young, J.D. Morgan, our athletic director, all my classmates, my professors. Those are the experiences that really shape your life. I would not trade that for anything in the world. The NBA was the next step after college. It's very sad that these guys are passing up on that experience.

KAGAN: Well, it's all good. Your experience, excellent. And thanks for sharing some of your expertise with us this morning. And thanks for your final four picks. Thanks, Bill.

WALTON: Thank you, Daryn.

KAGAN: I appreciate it.

Bill Walton joining us from new York city.

The pictures we are about to show you might be a little bit painful to look at but there is a happy ending. Promise you on that one. Find out what happened to this trooper, just a little bit later on CNN LIVE TODAY.

And up next, are you ready for your "Top Five Tips?" Gerri is. She has a preview.

Hi, Gerr.

GERRI WILLIS, CNNFN PERSONAL FINANCE EDITOR: Hey, Daryn. Good to see you. Have you been shopping for a mortgage? Then you know all the new terms: piggybacks, I/Os, miss a payments. We're going to tell you which ones are good, which are bad when CNN LIVE TODAY continues.

(COMMERCIAL BREAK)

KAGAN: Let's talk mortgages. There are some popular options out there. There are also pitfalls and compromises in today's "Top Five Tips." For that let's bring in our CNNfn personal finance correspondent Gerri Willis.

Gerri, good morning.

WILLIS: Hey, Daryn. Good to see you. Tip No. 1, check out the piggybacks. I don't know if you have ever gotten a mortgage, but you often find, prices on homes have risen so much, getting together that 20 percent down payment is really tough. If you can't, you might consider a piggyback loan. And that's because by getting this special loan you can get around paying something called private mortgage insurance. That's what you pay if you can't put 20 percent down.

The piggyback is actually two loans. It's a standard first mortgage and also a home equity line of credit. Now, the downside, you limit your borrowing down the line. And you also have to pay a little higher interest for that home equity line of credit. But at the end of the day; at least you're not paying the PMI.

KAGAN: What about the interest only option.

WILLIS: Also not a big favorite for me. You know, this is really designed as a niche product for a small number of people, who maybe are going to stay in their home a very short period of time, or maybe they only get paid in a lump sum once a year; most of their income coming at the end of the year, for example. But interest-only means that you pay interest only for a period of time and you don't even touch the principle. The downside obviously to this is you're not building up principle in your house. So it could be a real problem if you have to sell your house. Maybe you're going to end up owing more than the house is worth. That could be a real problem -- Daryn.

KAGAN: Some people looking to get in with a fixer upper in their neighborhood.

WILLIS: Yes. You know, this is one of my favorites. This is really interesting. You know, sometimes people want to buy a house that's in a real mess. They really need to do upgrades right away. And it can be difficult to finance that whole thing except for this new loan type called the Fixer Upper. You get one loan to cover, not just the house itself, but all the renovations.

Big downside here, Daryn, you've got to spend a lot of time with your lender. They're going to spend a lot of time looking at the deals, even the contractors themselves. So it becomes a teal relationship with the lender, but at the end of the day you get a fixed up house.

KAGAN: What about miss a payment loans?

WILLIS: Yes. You know, this is interesting, too. This is one of those innovations you wonder; hmm, did you really need that? You can pay an extra $200 couple times a year if you're going to miss a payment. Miss a payment on that mortgage. But of course you eventually have to pay the amount. That you know, particular month's PIM doesn't go away. You just add on to the end of your loan. So you end up paying even more for your house and you've got to pay that fee for missing the payment. So I'm not sure it's worth it for most people. KAGAN: And then finally, buy what you need. What do you mean by that?

WILLIS: You know, a lot of people end up getting more mortgages than they need. They pay for some of these bells and whistles I just described. And at the end of the day it comes out of their pocket. Not a good thing. As usual when you're shopping for any consumer product, you want to shop around, check out all the offers.

First figure out how much fixed rate loan you need, how much you can afford to put down, what the term is you want. And then go start talking to lenders to figure out what is the best deal for you -- Daryn.

KAGAN: Gerri Willis, You have a great weekend. Thanks for the tips, appreciate it.

WILLIS: Thank you Daryn.

KAGAN: Much more news ahead including heavy fighting, which is continuing this morning near the Pakistan/Afghan border, where al Qaeda's No. 2 man is believed to be cornered. Are his days numbered? We'll get an update from the Pentagon next on CNN LIVE TODAY.

(COMMERCIAL BREAK)

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