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CNN Live At Daybreak
Key Witnesses to Give 9/11 Testimony; America's Voice
Aired March 23, 2004 - 06:30 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.
CAROL COSTELLO, CNN ANCHOR: Witnesses will include former Secretary of State Madeleine Albright, her successor, Colin Powell, former Defense Secretary William Cohen, and current Defense Secretary Donald Rumsfeld.
So, what can we expect to hear from those high-profile witnesses?
Live on the phone from the Pentagon, our Pentagon correspondent, Barbara Starr.
Good morning -- Barbara.
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning to you, Carol.
Well, it's going to be a pretty interesting hearing for the next two days, of course, because all of this comes as the former counterterrorism chief, Richard Clarke, has unveiled his book, of course, charging that President Bush tried to blame Iraq for the 9/11 attacks, tried to find a connection to the regime of Saddam Hussein. Clarke continuing to claim that the Bush administration simply did not pay enough attention to the al Qaeda threat.
And, of course, yesterday across Washington we saw top officials of the Bush administration come out and refute those charges very strongly. So that may be front and center when the commission gets going later today.
COSTELLO: So, Barbara, will witnesses like Donald Rumsfeld perhaps change his planned testimony in light of Mr. Clarke's allegations?
STARR: Not likely that the secretary is going to change what he already plans to say, which is to make a very strong defense that the Bush administration, the White House, understood the al Qaeda threat and had already been moving to do everything that they could.
He is going to be very tough, if asked, on the question of Saddam Hussein, saying that the Iraqi regime was a threat to stability in the region, to world stability. That once President Bush made the decision that this would be a global war on terrorism, then it was the right thing to do to put Iraq into the mix, but that nothing the administration did or knew could have prevented the 9/11 attacks. But...
COSTELLO: But, you know, Barbara, though, I bet the questions from the commission members will be much more pointed in light of Mr. Clarke's allegations.
STARR: Oh, absolutely. There is no question about it. And, of course, it's Richard Clarke himself who will testify, perhaps be the last scheduled witness tomorrow. So, he'll be able to wrap it up.
And it's going to be something, his allegations, his charges, are going to be something that the administration is going to be very interested in. And, of course, everyone should remember that Richard Clarke served in both the Clinton administration and the Bush administration. So, his allegations are certainly going to be something we can expect to see former Secretary of State Madeleine Albright, former Secretary of Defense William Cohen under the Clinton administration also be questioned about.
COSTELLO: Interesting. And the testimony will be public. CNN will be dipping in throughout the day. Barbara Starr, thank you very much -- reporting live for us by phone from the Pentagon.
Vice President Dick Cheney is among those saying the former White House terrorism head, Richard Clarke, is just wrong. He said the Bush administration has taken several steps to deal with terrorists. His comments came at a campaign fund-raiser in New Jersey.
(BEGIN VIDEO CLIP)
DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: Our strategy has several elements, and we've strengthened our defenses here at home, organizing the government to protect the homeland. But a good defense is not enough. The terrorist enemy holds no territory, defends no population, is unconstrained by rules of warfare and respects no law of morality.
Such an enemy cannot be deterred, contained, appeased or negotiated with. It can only be destroyed. And that, ladies and gentlemen, is the business at hand.
(END VIDEO CLIP)
COSTELLO: Well, we've got some new numbers for you. We want to see what the people at Gallup are learning about Clarke's accusations and what you think about them.
Gallup Poll editor-in-chief Frank Newport live in Princeton, New Jersey, with the new numbers for us this morning.
What do you have -- Frank?
FRANK NEWPORT, GALLUP POLL EDITOR-IN-CHIEF: Hello, Carol.
One of the reasons, I think, that we're finding the Bush administration fight back so hard, as we were just hearing about these allegations by Richard Clarke, is that that's really a position of strength for the administration. A lot of their re-election campaign is based on George W. Bush is fighting terrorism, and, of course, also a wartime president. That's a strength. Let me show you the latest data we have here comes from the same thing we've been finding in our CNN/"USA Today"/Gallup Poll. This is a "Newsweek" poll just released a couple of days ago: 56 to 35 if voters are given a choice who could do the better job protecting the homeland and fighting terrorism is George Bush. This is that 21-point margin, the biggest margin he has over his competitor this fall.
That's one reason the Bush administration, Carol, has to really work hard to try to maintain that real positive positioning, because that's what they're depending on as they campaign for re-election this year.
COSTELLO: And, Frank, the other big issue in the campaign is the economy. And with the stock market continuing to slump, especially on Monday, are investors losing faith in the recovery?
NEWPORT: Well, investors are indeed getting more sour on the economy each time we ask them this question. It's too bad, Carol, what I'm going to show you here isn't a pretty picture. These are investors in America so high, you know, five years ago. Look at how they have dipped. They had come back up again.
In fact, let me zoom in and show you real specifically when we asked them in our UBS index of investor optimism how optimistic they were, they indexed all the way up to 108 in January. That was the peak. Good times are here again, but look how it's fallen down, as I mentioned: 85. Just released this number, an index of 85 on investor optimism, actually lower than it was in November of last year.
COSTELLO: All right, let's talk about gas prices, because they're rising as fast as the markets are falling. Could that become a political hot potato this election year?
NEWPORT: I think that energy is an issue. It's going to be an important issue. In fact, in this UBS poll, the investors were asked: What's the major reason why you think the investment climate has gotten so bad? Actually, the high price of oil and gas was No. 1, above outsourcing and a lot of other issues at the same time there.
In addition, when we've asked people what should be done about this energy situation, this is the real key. Look at the difference here. Both Republicans and Democrats say conservation rather than trying to get more production. But Democrats much, much more likely to say that's the remedy for what we're seeing now. It could be record gas prices at the pump, and that's not going to make voters happy -- Carol.
COSTELLO: Oh, no. Frank Newport, many thanks -- live from Princeton, New Jersey.
(WEATHER BREAK)
COSTELLO: Coming up, we know it's illegal to drive drunk, but should the penalty be tougher if a child is in the car?
And, patients versus HMOs. This woman's case could define your rights and how much the companies are protected.
And, take out your frustration with your neighborhood association with a roll of the dice monopoly-style.
(COMMERCIAL BREAK)
COSTELLO: Your news, money, weather and sports. It's 6:42 Eastern Time. Here are the latest headlines for you.
The independent 9/11 commission holds public hearings today. Among those scheduled to testify are Defense Secretary Donald Rumsfeld and Secretary of State Colin Powell.
Mothers Against Drunk Driving is set to announce a new initiative calling for stiffer penalties for drunk drivers who have kids in the car.
NASA has found a mechanical problem with all three shuttles left in its fleet. A gear mistake made 20 years ago was found on the shuttle Discovery. Discovery made 30 successful flights without incident.
In money news, gas prices are increasing again after a week a slow decline. The average price per gallon stands at $1.74 for regular unleaded, and some states are well above $2.00 a gallon now.
In sports, women's NCAA tourney and the Tennessee Lady Vols advance to their 23rd straight sweet 16 with a 79-59 victory over DePaul.
In culture, the Motion Picture Academy is working on new public service announcements to run before feature films in an effort to dissuade foreign piracy of American movies.
And in weather, it should be mostly clear across the East Coast, but expect some rain in the Midwest.
Those are the headlines. Your next update is coming up on "AMERICAN MORNING" at the top of the hour.
Speaking of "AMERICAN MORNING," let's head live to New York to check in with Bill and Soledad.
And I'm just waiting with bated breath to hear your Richard Clarke interview this morning.
SOLEDAD O'BRIEN, CNN ANCHOR: As we all are, yes.
BILL HEMMER, CNN ANCHOR: He will be the first one out of the shoot, as a matter of fact. We'll talk to him at the top of the 7:00 a.m. hour.
Also, Representative David Dreier gives the Republican response about an hour later.
So, a number of questions, as you well know, Carol. The hornet's nest has been stirred as a result of this interview on Sunday night. We'll get to a lot of the issues this morning.
O'BRIEN: And, of course, in the wake of the threats of much violence in the Mideast, we're going to tell you about the security preparations being made there. We'll take you live to Gaza City for that.
HEMMER: Also, Carol, I know you've been reporting on this 9/11 commission. Public hearings later today on Capitol Hill, the eighth time they'll do this publicly. We'll talk to the chairman, Tom Kean, and the vice chairman, Lee Hamilton, about what they hope to get out of this process, their mission, and whether or not they think it can be accomplished. So, we'll have that all for you.
And Jack, too.
COSTELLO: Oh, we can't forget Jack.
HEMMER: Never.
O'BRIEN: Never.
COSTELLO: Never. Thank you. We'll see you in about, oh, 15 minutes.
HEMMER: Top of the hour. You got it.
COSTELLO: All right, put yourself in this position. You need medical treatment, but your HMO will not provide it. Or, you need to get a much-needed operation, but your HMO botches it. Should you be able to sue for pain and suffering in state court? That is the question before the U.S. Supreme Court today.
CNN's Ed Lavandera has a preview for you.
(BEGIN VIDEOTAPE)
RUBY CALAD, PLAINTIFF: To take some medicine.
ED LAVANDERA, CNN CORRESPONDENT (voice-over): Ruby Calad says her hysterectomy operation five years ago was a nightmare.
CALAD: I couldn't walk. They had to lift me from the bed to a wheelchair.
LAVANDERA: Two days after the surgery, her doctor said she needed more time in the hospital to recover. But a CIGNA health care employee told Calad to go home.
CALAD: That person, without the knowledge, without the experience, overrode my doctor's decision for me to stay in the hospital.
LAVANDERA: A day later, Calad was rushed to the emergency room because of complications from the operation.
CALAD: This is wrong. This is unethical. This is not right. They are treating you like a piece of meat.
LAVANDERA: CIGNA HealthCare refused on-camera interviews for this report. But in a statement, CIGNA said: "Calad chose not to use the existing avenues to appeal the coverage."
Calad's story is one of two cases before the U.S. Supreme Court, which could determine if health insurance providers can be sued in state court, or if those cases must remain in federal court.
(on camera): A majority of Americans get health insurance from their employers. But, as it stands now, those people, like Ruby Calad, aren't allowed to sue their HMOs in state court. Recently, 10 states have passed laws allowing that to happen, but those laws apply only to people who bought their own insurance or work in state government.
(voice-over): Insurance providers want medical malpractice lawsuits kept in federal court because you can only sue for the amount of the coverage. In Ruby Calad's case, that would have been for an extra night's stay in the hospital, about $1,500.
In state court, however, juries could award damages for pain and suffering and lost wages, a much more expensive reality for insurance companies.
SUSAN PISANO, AMERICAN ASSOCIATION OF HEALTH PLANS: If what happens is there is a threat of going to state court every time there's a question about the scope of coverage for an individual, then health care could very well become unaffordable for many more employers and many more consumers.
LAVANDERA: George Parker Young is Ruby Calad's attorney. He says it's an issue of accountability.
GEORGE PARKER YOUNG, ATTORNEY FOR CALAD: Really, what they're saying is, we should be immune. We should be able to make these medical decisions, second-guess the doctors and have absolutely no accountability if things turn out bad.
LAVANDERA: The Supreme Court could finally decide how much legal protection HMOs to get from patients. Ruby Calad says, sometimes a lawsuit is the only way a powerless person can get the attention of a giant insurance company.
Ed Lavandera, CNN, Dallas.
(END VIDEOTAPE)
COSTELLO: We're just getting in new pictures for you. There's a very tense situation going on right now in Ramadi, Iraq. You see it there. It's a demonstration, apparent fallout from the Israeli targeting of terrorist leader Ahmed Yassin in Gaza City.
U.S. soldiers and Iraqi police fired shots on protestors demonstrating against that killing. The protestors were in two police cars. Hand grenades were tossed at a government building. At least two police officers and three protesters are injured this morning.
Muslim clerics had called on followers to protest Israel's assassination of Yassin. We told you about that. And support in this area for anti-U.S. insurgents is strong. We'll keep you posted on what's happening here. These pictures this morning out of Iraq.
Coming up, teed off about a t-shirt. Hear what's happening in one state to get a stereotype off of stores shelves.
And we'll share this man's inspiring story of loss and life with a bionic leg.
We'll be right back.
(COMMERCIAL BREAK)
COSTELLO: (AUDIO GAP) it depends on who you ask. West Virginia Governor Bob Wise wants Abercrombie & Fitch to remove this t-shirt design from store shelves. He says the slogan, "It's all relative in West Virginia," depicts a negative stereotype of his state.
What do shoppers think?
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: It's just acting like we're all related. And, like, they're poking fun at us, is what it is.
UNIDENTIFIED MALE: It's kind of insulting, don't you think?
UNIDENTIFIED MALE: If we can't laugh at ourselves, who can we laugh at?
UNIDENTIFIED FEMALE: Oh, I think it's just fun.
UNIDENTIFIED FEMALE: It's just fun.
UNIDENTIFIED FEMALE: I'm not offended by it.
(END VIDEO CLIP)
COSTELLO: People have a sense of humor in West Virginia. I'd be offended by it. Abercrombie & Fitch, by the way, says the shirt has been selling well, 24 bucks -- 24.50 for that t-shirt.
CHAD MYERS, CNN METEOROLOGIST: Wow! They're making money on that.
Hey, Carol, do you know what time it is? It is time for the DAYBREAK quiz for the mug! Get logged on. Hurry up.
COSTELLO: I love that fancy background you have for this segment.
MYERS: Well, you didn't want me to put weather back there.
COSTELLO: No.
MYERS: So, I put up a shot of some clouds.
COSTELLO: Which kind of fits, doesn't it?
MYERS: What else do I have? I'm like on a weather computer.
COSTELLO: All right. Here are the questions of the day to win that beautiful DAYBREAK mug.
MYERS: In the most recent Gallup Poll -- we had it on there -- what are people blaming for the bad investment climate right now?
COSTELLO: And No. 2.
MYERS: A northern New Jersey seaport, which one is the first in the nation to receive one of these? What is it?
COSTELLO: Tough questions.
MYERS: Well, we had a...
COSTELLO: Tough questions.
MYERS: It was a long package about this. A northern New Jersey seaport has one of these things. We want a bunch of them across the country. What are they?
COSTELLO: All right. E-mail us your answers, Daybreak@CNN.com. Keep them coming, Daybreak@CNN.com.
MYERS: All right.
COSTELLO: Time for a little business buzz right now.
ABC News expands into on-demand cable. Interesting.
Carrie Lee has more live from the Nasdaq Marketsite.
What is this?
CARRIE LEE, CNN FINANCIAL NEWS: It is interesting, Carol. "The Wall Street Journal" reporting today that ABC's Disney unit is expected to officially announce today that it's going to contribute 20 hours of programming a month to a package of sports and news program being assembled by Insight Communications.
Now, Insight is the nation's ninth largest cable operator. They operate in four different states.
And here's what's happening. Starting later this spring, Insight is going to sell the package to its digital cable subscribers for 4.99 a month. Not a bad price. The package is going to include over 150 hours of programming from 10 to 15 networks. Insight is also in talks with Disney's ESPN to contribute sports content to the package. So, the deal is expected to be announced later today, Carol. Remember the whole Comcast bid for Disney, Comcast talking about on- demand services on its platform. Well, now Disney is moving into this space on its own. So, that is the latest.
Back to you.
COSTELLO: We'll see if it works for them.
LEE: Yes.
COSTELLO: Thank you, Carrie Lee.
Chad will join me for "The Lightning Round" coming up, but first here are the latest headlines.
(COMMERCIAL BREAK)
COSTELLO: Oh, could Chaka Khan, Chaka Khan, Chaka Khan really be 51, 51, 51?
MYERS: I was thinking (UNINTELLIGIBLE).
COSTELLO: It is time for our "Lightning Round," Chad.
MYERS: Yes.
COSTELLO: This new board game can help you laugh off those rules those homeowner associations come up with.
MYERS: Yes.
COSTELLO: You know, the ones that tell you what you can and can't do on your own property.
MYERS: I love the one in mine that says I have to submit color samples when I paint my house, even if I'm painting it the same color.
COSTELLO: You need this board game.
MYERS: Hey, just look at it! It's the same color!
COSTELLO: You need this board game. Listen:
(BEGIN VIDEO CLIP)
YOLANDA LOCKER, GAME DEVELOPER: Sometimes people get a little too worked up about the little things. So, I just want them to smile.
(END VIDEO CLIP)
COSTELLO: See, that board game is for you. To win, you have to move your game piece through the neighborhood and avoid getting letters from the homeowners' association for violations like illegally parked cars and messy, disobedient pets, and, of course, paint colors. MYERS: Well, yes. And I didn't get one, but all of that stuff I had to pull out of my house from that last flood I had, it was all sitting in the driveway for a couple of weeks. I was waiting for a letter. I didn't get it.
COSTELLO: I'm surprised you didn't get one.
MYERS: I know. Go ahead.
COSTELLO: Could they be the Sonny and Cher of their generation? Newlywed pop stars Nick Lachey and Jessica Simpson are set to host their own variety special next month on ABC. The world has come to an end.
Do you like them, Chad?
MYERS: No. Well, I don't know. Obviously, I don't even really know who they are. I've seen Jessica Simpson in one of her videos, but that's it.
COSTELLO: Yes. Well, they're a cute couple.
MYERS: OK.
COSTELLO: OK.
Tiger Woods will trade in his clubs for combat boots after the Masters tournament next month. Woods will spend a week training at the Army Special Forces headquarters in Fort Bragg, North Carolina...
MYERS: Wow!
COSTELLO: ... where his father once served. Good for him.
MYERS: (UNINTELLIGIBLE).
COSTELLO: And could you hike 10 miles a day?
MYERS: No.
COSTELLO: I could actually, but no, not you. But not like this guy.
MYERS: Wow!
COSTELLO: Doctors removed part of Scott Rogers' right leg after a hunting accident, and they replaced it with a bionic one. Well, this week, Roger started out on the Appalachian Trail. He plans to complete all 2,100 miles, and you can follow his journey online at www.OneLegWonder.com.
MYERS: Wow! He'll be starting from the south and going north. I said it the other way.
COSTELLO: It would be warming, wouldn't it?
MYERS: Yes, it sure would.
COSTELLO: All right. Thank you, Chad. That does it for us. I'm Carol Costello along with Chad Myers. "AMERICAN MORNING" starts right now.
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Aired March 23, 2004 - 06:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Witnesses will include former Secretary of State Madeleine Albright, her successor, Colin Powell, former Defense Secretary William Cohen, and current Defense Secretary Donald Rumsfeld.
So, what can we expect to hear from those high-profile witnesses?
Live on the phone from the Pentagon, our Pentagon correspondent, Barbara Starr.
Good morning -- Barbara.
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning to you, Carol.
Well, it's going to be a pretty interesting hearing for the next two days, of course, because all of this comes as the former counterterrorism chief, Richard Clarke, has unveiled his book, of course, charging that President Bush tried to blame Iraq for the 9/11 attacks, tried to find a connection to the regime of Saddam Hussein. Clarke continuing to claim that the Bush administration simply did not pay enough attention to the al Qaeda threat.
And, of course, yesterday across Washington we saw top officials of the Bush administration come out and refute those charges very strongly. So that may be front and center when the commission gets going later today.
COSTELLO: So, Barbara, will witnesses like Donald Rumsfeld perhaps change his planned testimony in light of Mr. Clarke's allegations?
STARR: Not likely that the secretary is going to change what he already plans to say, which is to make a very strong defense that the Bush administration, the White House, understood the al Qaeda threat and had already been moving to do everything that they could.
He is going to be very tough, if asked, on the question of Saddam Hussein, saying that the Iraqi regime was a threat to stability in the region, to world stability. That once President Bush made the decision that this would be a global war on terrorism, then it was the right thing to do to put Iraq into the mix, but that nothing the administration did or knew could have prevented the 9/11 attacks. But...
COSTELLO: But, you know, Barbara, though, I bet the questions from the commission members will be much more pointed in light of Mr. Clarke's allegations.
STARR: Oh, absolutely. There is no question about it. And, of course, it's Richard Clarke himself who will testify, perhaps be the last scheduled witness tomorrow. So, he'll be able to wrap it up.
And it's going to be something, his allegations, his charges, are going to be something that the administration is going to be very interested in. And, of course, everyone should remember that Richard Clarke served in both the Clinton administration and the Bush administration. So, his allegations are certainly going to be something we can expect to see former Secretary of State Madeleine Albright, former Secretary of Defense William Cohen under the Clinton administration also be questioned about.
COSTELLO: Interesting. And the testimony will be public. CNN will be dipping in throughout the day. Barbara Starr, thank you very much -- reporting live for us by phone from the Pentagon.
Vice President Dick Cheney is among those saying the former White House terrorism head, Richard Clarke, is just wrong. He said the Bush administration has taken several steps to deal with terrorists. His comments came at a campaign fund-raiser in New Jersey.
(BEGIN VIDEO CLIP)
DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: Our strategy has several elements, and we've strengthened our defenses here at home, organizing the government to protect the homeland. But a good defense is not enough. The terrorist enemy holds no territory, defends no population, is unconstrained by rules of warfare and respects no law of morality.
Such an enemy cannot be deterred, contained, appeased or negotiated with. It can only be destroyed. And that, ladies and gentlemen, is the business at hand.
(END VIDEO CLIP)
COSTELLO: Well, we've got some new numbers for you. We want to see what the people at Gallup are learning about Clarke's accusations and what you think about them.
Gallup Poll editor-in-chief Frank Newport live in Princeton, New Jersey, with the new numbers for us this morning.
What do you have -- Frank?
FRANK NEWPORT, GALLUP POLL EDITOR-IN-CHIEF: Hello, Carol.
One of the reasons, I think, that we're finding the Bush administration fight back so hard, as we were just hearing about these allegations by Richard Clarke, is that that's really a position of strength for the administration. A lot of their re-election campaign is based on George W. Bush is fighting terrorism, and, of course, also a wartime president. That's a strength. Let me show you the latest data we have here comes from the same thing we've been finding in our CNN/"USA Today"/Gallup Poll. This is a "Newsweek" poll just released a couple of days ago: 56 to 35 if voters are given a choice who could do the better job protecting the homeland and fighting terrorism is George Bush. This is that 21-point margin, the biggest margin he has over his competitor this fall.
That's one reason the Bush administration, Carol, has to really work hard to try to maintain that real positive positioning, because that's what they're depending on as they campaign for re-election this year.
COSTELLO: And, Frank, the other big issue in the campaign is the economy. And with the stock market continuing to slump, especially on Monday, are investors losing faith in the recovery?
NEWPORT: Well, investors are indeed getting more sour on the economy each time we ask them this question. It's too bad, Carol, what I'm going to show you here isn't a pretty picture. These are investors in America so high, you know, five years ago. Look at how they have dipped. They had come back up again.
In fact, let me zoom in and show you real specifically when we asked them in our UBS index of investor optimism how optimistic they were, they indexed all the way up to 108 in January. That was the peak. Good times are here again, but look how it's fallen down, as I mentioned: 85. Just released this number, an index of 85 on investor optimism, actually lower than it was in November of last year.
COSTELLO: All right, let's talk about gas prices, because they're rising as fast as the markets are falling. Could that become a political hot potato this election year?
NEWPORT: I think that energy is an issue. It's going to be an important issue. In fact, in this UBS poll, the investors were asked: What's the major reason why you think the investment climate has gotten so bad? Actually, the high price of oil and gas was No. 1, above outsourcing and a lot of other issues at the same time there.
In addition, when we've asked people what should be done about this energy situation, this is the real key. Look at the difference here. Both Republicans and Democrats say conservation rather than trying to get more production. But Democrats much, much more likely to say that's the remedy for what we're seeing now. It could be record gas prices at the pump, and that's not going to make voters happy -- Carol.
COSTELLO: Oh, no. Frank Newport, many thanks -- live from Princeton, New Jersey.
(WEATHER BREAK)
COSTELLO: Coming up, we know it's illegal to drive drunk, but should the penalty be tougher if a child is in the car?
And, patients versus HMOs. This woman's case could define your rights and how much the companies are protected.
And, take out your frustration with your neighborhood association with a roll of the dice monopoly-style.
(COMMERCIAL BREAK)
COSTELLO: Your news, money, weather and sports. It's 6:42 Eastern Time. Here are the latest headlines for you.
The independent 9/11 commission holds public hearings today. Among those scheduled to testify are Defense Secretary Donald Rumsfeld and Secretary of State Colin Powell.
Mothers Against Drunk Driving is set to announce a new initiative calling for stiffer penalties for drunk drivers who have kids in the car.
NASA has found a mechanical problem with all three shuttles left in its fleet. A gear mistake made 20 years ago was found on the shuttle Discovery. Discovery made 30 successful flights without incident.
In money news, gas prices are increasing again after a week a slow decline. The average price per gallon stands at $1.74 for regular unleaded, and some states are well above $2.00 a gallon now.
In sports, women's NCAA tourney and the Tennessee Lady Vols advance to their 23rd straight sweet 16 with a 79-59 victory over DePaul.
In culture, the Motion Picture Academy is working on new public service announcements to run before feature films in an effort to dissuade foreign piracy of American movies.
And in weather, it should be mostly clear across the East Coast, but expect some rain in the Midwest.
Those are the headlines. Your next update is coming up on "AMERICAN MORNING" at the top of the hour.
Speaking of "AMERICAN MORNING," let's head live to New York to check in with Bill and Soledad.
And I'm just waiting with bated breath to hear your Richard Clarke interview this morning.
SOLEDAD O'BRIEN, CNN ANCHOR: As we all are, yes.
BILL HEMMER, CNN ANCHOR: He will be the first one out of the shoot, as a matter of fact. We'll talk to him at the top of the 7:00 a.m. hour.
Also, Representative David Dreier gives the Republican response about an hour later.
So, a number of questions, as you well know, Carol. The hornet's nest has been stirred as a result of this interview on Sunday night. We'll get to a lot of the issues this morning.
O'BRIEN: And, of course, in the wake of the threats of much violence in the Mideast, we're going to tell you about the security preparations being made there. We'll take you live to Gaza City for that.
HEMMER: Also, Carol, I know you've been reporting on this 9/11 commission. Public hearings later today on Capitol Hill, the eighth time they'll do this publicly. We'll talk to the chairman, Tom Kean, and the vice chairman, Lee Hamilton, about what they hope to get out of this process, their mission, and whether or not they think it can be accomplished. So, we'll have that all for you.
And Jack, too.
COSTELLO: Oh, we can't forget Jack.
HEMMER: Never.
O'BRIEN: Never.
COSTELLO: Never. Thank you. We'll see you in about, oh, 15 minutes.
HEMMER: Top of the hour. You got it.
COSTELLO: All right, put yourself in this position. You need medical treatment, but your HMO will not provide it. Or, you need to get a much-needed operation, but your HMO botches it. Should you be able to sue for pain and suffering in state court? That is the question before the U.S. Supreme Court today.
CNN's Ed Lavandera has a preview for you.
(BEGIN VIDEOTAPE)
RUBY CALAD, PLAINTIFF: To take some medicine.
ED LAVANDERA, CNN CORRESPONDENT (voice-over): Ruby Calad says her hysterectomy operation five years ago was a nightmare.
CALAD: I couldn't walk. They had to lift me from the bed to a wheelchair.
LAVANDERA: Two days after the surgery, her doctor said she needed more time in the hospital to recover. But a CIGNA health care employee told Calad to go home.
CALAD: That person, without the knowledge, without the experience, overrode my doctor's decision for me to stay in the hospital.
LAVANDERA: A day later, Calad was rushed to the emergency room because of complications from the operation.
CALAD: This is wrong. This is unethical. This is not right. They are treating you like a piece of meat.
LAVANDERA: CIGNA HealthCare refused on-camera interviews for this report. But in a statement, CIGNA said: "Calad chose not to use the existing avenues to appeal the coverage."
Calad's story is one of two cases before the U.S. Supreme Court, which could determine if health insurance providers can be sued in state court, or if those cases must remain in federal court.
(on camera): A majority of Americans get health insurance from their employers. But, as it stands now, those people, like Ruby Calad, aren't allowed to sue their HMOs in state court. Recently, 10 states have passed laws allowing that to happen, but those laws apply only to people who bought their own insurance or work in state government.
(voice-over): Insurance providers want medical malpractice lawsuits kept in federal court because you can only sue for the amount of the coverage. In Ruby Calad's case, that would have been for an extra night's stay in the hospital, about $1,500.
In state court, however, juries could award damages for pain and suffering and lost wages, a much more expensive reality for insurance companies.
SUSAN PISANO, AMERICAN ASSOCIATION OF HEALTH PLANS: If what happens is there is a threat of going to state court every time there's a question about the scope of coverage for an individual, then health care could very well become unaffordable for many more employers and many more consumers.
LAVANDERA: George Parker Young is Ruby Calad's attorney. He says it's an issue of accountability.
GEORGE PARKER YOUNG, ATTORNEY FOR CALAD: Really, what they're saying is, we should be immune. We should be able to make these medical decisions, second-guess the doctors and have absolutely no accountability if things turn out bad.
LAVANDERA: The Supreme Court could finally decide how much legal protection HMOs to get from patients. Ruby Calad says, sometimes a lawsuit is the only way a powerless person can get the attention of a giant insurance company.
Ed Lavandera, CNN, Dallas.
(END VIDEOTAPE)
COSTELLO: We're just getting in new pictures for you. There's a very tense situation going on right now in Ramadi, Iraq. You see it there. It's a demonstration, apparent fallout from the Israeli targeting of terrorist leader Ahmed Yassin in Gaza City.
U.S. soldiers and Iraqi police fired shots on protestors demonstrating against that killing. The protestors were in two police cars. Hand grenades were tossed at a government building. At least two police officers and three protesters are injured this morning.
Muslim clerics had called on followers to protest Israel's assassination of Yassin. We told you about that. And support in this area for anti-U.S. insurgents is strong. We'll keep you posted on what's happening here. These pictures this morning out of Iraq.
Coming up, teed off about a t-shirt. Hear what's happening in one state to get a stereotype off of stores shelves.
And we'll share this man's inspiring story of loss and life with a bionic leg.
We'll be right back.
(COMMERCIAL BREAK)
COSTELLO: (AUDIO GAP) it depends on who you ask. West Virginia Governor Bob Wise wants Abercrombie & Fitch to remove this t-shirt design from store shelves. He says the slogan, "It's all relative in West Virginia," depicts a negative stereotype of his state.
What do shoppers think?
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: It's just acting like we're all related. And, like, they're poking fun at us, is what it is.
UNIDENTIFIED MALE: It's kind of insulting, don't you think?
UNIDENTIFIED MALE: If we can't laugh at ourselves, who can we laugh at?
UNIDENTIFIED FEMALE: Oh, I think it's just fun.
UNIDENTIFIED FEMALE: It's just fun.
UNIDENTIFIED FEMALE: I'm not offended by it.
(END VIDEO CLIP)
COSTELLO: People have a sense of humor in West Virginia. I'd be offended by it. Abercrombie & Fitch, by the way, says the shirt has been selling well, 24 bucks -- 24.50 for that t-shirt.
CHAD MYERS, CNN METEOROLOGIST: Wow! They're making money on that.
Hey, Carol, do you know what time it is? It is time for the DAYBREAK quiz for the mug! Get logged on. Hurry up.
COSTELLO: I love that fancy background you have for this segment.
MYERS: Well, you didn't want me to put weather back there.
COSTELLO: No.
MYERS: So, I put up a shot of some clouds.
COSTELLO: Which kind of fits, doesn't it?
MYERS: What else do I have? I'm like on a weather computer.
COSTELLO: All right. Here are the questions of the day to win that beautiful DAYBREAK mug.
MYERS: In the most recent Gallup Poll -- we had it on there -- what are people blaming for the bad investment climate right now?
COSTELLO: And No. 2.
MYERS: A northern New Jersey seaport, which one is the first in the nation to receive one of these? What is it?
COSTELLO: Tough questions.
MYERS: Well, we had a...
COSTELLO: Tough questions.
MYERS: It was a long package about this. A northern New Jersey seaport has one of these things. We want a bunch of them across the country. What are they?
COSTELLO: All right. E-mail us your answers, Daybreak@CNN.com. Keep them coming, Daybreak@CNN.com.
MYERS: All right.
COSTELLO: Time for a little business buzz right now.
ABC News expands into on-demand cable. Interesting.
Carrie Lee has more live from the Nasdaq Marketsite.
What is this?
CARRIE LEE, CNN FINANCIAL NEWS: It is interesting, Carol. "The Wall Street Journal" reporting today that ABC's Disney unit is expected to officially announce today that it's going to contribute 20 hours of programming a month to a package of sports and news program being assembled by Insight Communications.
Now, Insight is the nation's ninth largest cable operator. They operate in four different states.
And here's what's happening. Starting later this spring, Insight is going to sell the package to its digital cable subscribers for 4.99 a month. Not a bad price. The package is going to include over 150 hours of programming from 10 to 15 networks. Insight is also in talks with Disney's ESPN to contribute sports content to the package. So, the deal is expected to be announced later today, Carol. Remember the whole Comcast bid for Disney, Comcast talking about on- demand services on its platform. Well, now Disney is moving into this space on its own. So, that is the latest.
Back to you.
COSTELLO: We'll see if it works for them.
LEE: Yes.
COSTELLO: Thank you, Carrie Lee.
Chad will join me for "The Lightning Round" coming up, but first here are the latest headlines.
(COMMERCIAL BREAK)
COSTELLO: Oh, could Chaka Khan, Chaka Khan, Chaka Khan really be 51, 51, 51?
MYERS: I was thinking (UNINTELLIGIBLE).
COSTELLO: It is time for our "Lightning Round," Chad.
MYERS: Yes.
COSTELLO: This new board game can help you laugh off those rules those homeowner associations come up with.
MYERS: Yes.
COSTELLO: You know, the ones that tell you what you can and can't do on your own property.
MYERS: I love the one in mine that says I have to submit color samples when I paint my house, even if I'm painting it the same color.
COSTELLO: You need this board game.
MYERS: Hey, just look at it! It's the same color!
COSTELLO: You need this board game. Listen:
(BEGIN VIDEO CLIP)
YOLANDA LOCKER, GAME DEVELOPER: Sometimes people get a little too worked up about the little things. So, I just want them to smile.
(END VIDEO CLIP)
COSTELLO: See, that board game is for you. To win, you have to move your game piece through the neighborhood and avoid getting letters from the homeowners' association for violations like illegally parked cars and messy, disobedient pets, and, of course, paint colors. MYERS: Well, yes. And I didn't get one, but all of that stuff I had to pull out of my house from that last flood I had, it was all sitting in the driveway for a couple of weeks. I was waiting for a letter. I didn't get it.
COSTELLO: I'm surprised you didn't get one.
MYERS: I know. Go ahead.
COSTELLO: Could they be the Sonny and Cher of their generation? Newlywed pop stars Nick Lachey and Jessica Simpson are set to host their own variety special next month on ABC. The world has come to an end.
Do you like them, Chad?
MYERS: No. Well, I don't know. Obviously, I don't even really know who they are. I've seen Jessica Simpson in one of her videos, but that's it.
COSTELLO: Yes. Well, they're a cute couple.
MYERS: OK.
COSTELLO: OK.
Tiger Woods will trade in his clubs for combat boots after the Masters tournament next month. Woods will spend a week training at the Army Special Forces headquarters in Fort Bragg, North Carolina...
MYERS: Wow!
COSTELLO: ... where his father once served. Good for him.
MYERS: (UNINTELLIGIBLE).
COSTELLO: And could you hike 10 miles a day?
MYERS: No.
COSTELLO: I could actually, but no, not you. But not like this guy.
MYERS: Wow!
COSTELLO: Doctors removed part of Scott Rogers' right leg after a hunting accident, and they replaced it with a bionic one. Well, this week, Roger started out on the Appalachian Trail. He plans to complete all 2,100 miles, and you can follow his journey online at www.OneLegWonder.com.
MYERS: Wow! He'll be starting from the south and going north. I said it the other way.
COSTELLO: It would be warming, wouldn't it?
MYERS: Yes, it sure would.
COSTELLO: All right. Thank you, Chad. That does it for us. I'm Carol Costello along with Chad Myers. "AMERICAN MORNING" starts right now.
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