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American Morning

Terror Concerns; Iraq's Sovereignty; Interview With Ben Stein

Aired April 23, 2004 - 9:00   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.


SOLEDAD O'BRIEN, CNN ANCHOR: Top officials in the administration give new warnings of terrorists in the U.S. Where are the risks?
It's a test of will in Fallujah, and Marines say their patience is running out. Is it an assault coming?

And Oklahoma whipped by tornadoes all week, and the region at risk again for more severe weather.

Those story all ahead on this AMERICAN MORNING.

ANNOUNCER: From the CNN Broadcast Center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.

BILL HEMMER, CNN ANCHOR: Good morning, 9:01 here in New York. Plenty more today about what caused this gigantic explosion in North Korea. A report in a minute here from one of the closest spots any reporter can get to that scene, just over the border in China.

Earlier, we thought this train collision had taken place. Talking with the Swedish ambassador last hour. You were on the phone with him, Soledad. He says there was some sort of explosion as they were moving freight around. High explosive coming in contact with wires there, so we'll try to get more facts on that today. Not easy to do either.

O'BRIEN: More information finally coming out of there.

Also this morning, our interview with Ben Stein coming up. He's a funny guy; he's a smart guy but I'm not sure you want to get financial advice from his new book. He's got pretty much, I think it's fair to say, a ticket to the poor house. What's it called, what not to do?

HEMMER: All tongue-in-cheek. "How to Ruin Your Financial Life..."

O'BRIEN: "How to Ruin Your Financial Life."

HEMMER: Really funny, clever guy, too. He's coming up this hour.

O'BRIEN: Yes, that's ahead.

HEMMER: Good morning, Jack.

JACK CAFFERTY, CNN ANCHOR: How are you doing? The Question of the Day has to do with an issue that's been on the back burner until about 48 hours ago concerning the war in Iraq. Pictures of the coffins containing the remains of American service personnel coming back from the war theater. All of a sudden, 300-plus have been turned up on the Internet, another one on the front page of a Seattle newspaper, and there are all kinds of repercussions. Is it the right thing to do or not? AM@CNN.com.

O'BRIEN: All right. Thank you, Jack. Look forward to that. Top stories, though, first.

Another coalition soldier wounded in Iraq. Clashes reported there. Military sources say that insurgents ambushed a coalition convoy in the holy city of Karbala about 70 miles south of Baghdad. According to a news release, the soldier was evacuated to a military hospital.

A federal appeals court has cleared the way for the trial of terrorist suspect Zacarias Moussaoui to proceed. Moussaoui is the only person charged in the U.S. in connection with the September 11 terrorist attacks. The court ruled yesterday to lift a ban on prosecutors presenting evidence relating to the hijackings. Jury selection could begin as early as October.

Accusations of misconduct once again plaguing the University of Colorado football program. A woman who claims she was raped by a former player says that the team's coach, Gary Barnett, intimidated her into not pressing charges. A commission is now investigating the possible sexual misconduct charges.

Airport security still lax despite billions of dollars spent in the wake of 9/11. That is according to reports to a House subcommittee. The Homeland Security Department's chief investigator says neither government nor privately screeners performed well in their jobs. An emergency meeting with Homeland Security Secretary Tom Ridge is planned to address the issue.

(WEATHER REPORT)

HEMMER: The Bush administration again putting Americans on alert for the possibility of a terror attack here on U.S. soil. The attorney general yesterday adding to the steady stream of recent warnings. In a moment, we'll talk with a police chief in Miami, Florida, about the concerns he has there and across the country. First, from D.C., and our justice correspondent, Kelli Arena.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): As al Qaeda or its associates are being blamed for the latest bombing in Riyadh, U.S. officials are becoming increasingly convinced another attack on U.S. soil could take place in the next few months.

JOHN ASHCROFT, ATTORNEY GENERAL: There is without a doubt in my mind a very serious level of activity of terrorism which concerns me greatly. We know that the terrorists have often sought symbolic targeting. ARENA: Ashcroft's comments follow warnings from a myriad of officials from the president on down.

ROBERT MUELLER, FBI DIRECTOR: I think we have to be concerned about the possibility of terrorism attacks between now and the fall. The attacks in Madrid just before the elections there, we should -- we certainly have noted, and we believe al Qaeda has noted.

ARENA: What's more, terrorism analysts believe Islamic extremists are becoming more angry as the U.S. continues to fight for democracy in Iraq. Officials say there is no credible or specific information regarding an attack. No time, place or tactic. Although there is speck take live chatter to that effect.

REP. PORTER GOSS (R), INTELLIGENCE CHAIRMAN: We're going to be on our guard. It's going to make it harder for the terrorists. But wherever they stick their heads up, they know we will be ready to come and get them.

ARENA (on camera): On a more positive note, counter-terrorism officials say the public remains very much on guard. They say calls continue to come in from helpful citizens who are reporting what they believe to be suspicious behavior.

Kelli Arena, CNN, Washington.

(END VIDEOTAPE)

HEMMER: One area of possible terrorists attack that has the FBI showing a lot of interest in is the biological or chemical attack possibilities with a crop duster plane. In the past year, federal authorities have interviewed thousands of pilots and opened several investigations, about 3,000 to be exact. Earlier today, we talked with Miami's chief of police, John Timoney, asking him about sleeper cell activity here today within the U.S. and what he knows.

(BEGIN VIDEOTAPE)

JOHN TIMONEY, MIAMI CHIEF OF POLICE: I can guarantee you from the information that I have that, number one, there are clearly sleeper cells throughout the United States. But also the FBI and the joint intelligence task force is in much better shape now with regards to these ongoing investigations. And they better be because the lesson I think the terrorists learned from 9/11 is that they can affect our daily lives and how we move about, particularly in the major cities.

I think the lessons of Madrid is that they also think they can have an impact or have an effect on an election, which is a real problem for us in the upcoming elections, the two conventions, the G-8 summit in Georgia in June. We've got a tough year ahead of us, including the Olympics in Greece.

HEMMER: You mentioned the Madrid bombings. Back to those in a minute. You also said sleeper cells here in the U.S. Chief, you are privy to much more information than we can ever get here. What can you tell us about what you are learning about sleeper cells? How many in the U.S. today?

TIMONEY: Well, I can't tell you how many, but what I can tell you is there are active investigations going. And the joint terrorist task force is doing a much better job than it ever has.

I think police departments all across America have increased their commitment. For example, in New York, where there used to be 20, there are now about 120 New York city police officers assigned. There have been thousands of FBI agents that formally investigated white collar crime, for example, and narcotics that are now solely involved in terrorist investigations, surveillance, wire tapping.

And so there is a lot of good things going on. And the way we're going to prevent this is by disrupting their operations, number one. But number two, through gaining good intelligence. Wire taps, informants is probably the best way to affect or disrupt these operations.

HEMMER: Chief, can you say that some operations have been disrupted?

TIMONEY: Oh, I think so. I think there is evidence, certainly in New York, we know of at least two. And it's often...

HEMMER: Hang on a second. In New York at least two? Give us more details.

TIMONEY: Well, there were reports of some folks -- some terrorist types surveilling (ph) the Brooklyn Bridge. There was an attempt to explode or cause an explosion on the New York City subway. And we know there have been other incidents.

I just spoke to some colleagues in L.A. yesterday who are very active in this area. And we know for a fact that we're having a good impact.

It's always difficult, however, to measure prevention and what you've prevented. You usually don't find it out until after you've made the arrests. And during the interview stage, the guy will tell you, yes, we were looking at so and so, but for whatever reason, we changed our mind.

(END VIDEOTAPE)

HEMMER: Chief Timoney earlier today. Despite the concerns about attacks, Chief Timoney says he feels the posture of the FBI and the people in the homeland security system have improved since 9/11, going back 31 months.

Also this note from D.C.: members of Congress are concerned that terrorists could target the Capitol Building. So the House yesterday approved a bill to set up special elections in the event that 100 or more of its members are killed. That bill would require special elections to be held within 45 days of a catastrophic event. It's widely believed that back on 9/11 Flight 93, the fourth plane hijacked that day, could have been headed possibly toward the Capitol Building.

Soledad?

O'BRIEN: Another top story this morning, little by little, we're learning more about that devastating train explosion in North Korea. The blast occurred yesterday in the town of Ryongchon, about 30 miles southeast of the Chinese border.

Earlier here on AMERICAN MORNING, the Swedish ambassador to North Korea told us the explosion was apparently caused when a freight car that was carrying explosion sieves touched a live power cable. The ambassador also said North Korean officials told him that all indications are that yesterday's blast was an accident, not any sort of attempt to assassinate the North Korean leader, Kim Jong-Il, who had passed along the same rail lines earlier in that day.

The explosion killed nearly 100 hundred people, injured more than 1,000, according to North Korean officials. The North Korean government is arranging a trip to the accident site for tomorrow morning. And foreign diplomats international aid agencies with supplies will go to that area.

HEMMER: Just a reminder how closed that society is. Reports yesterday they closed down all the telephone lines after this happened. Nobody calls out. No reporters that we know of have been to the site just yet either. So stay tuned for more when we get it.

In a moment here, major U.S. policy change in Iraq. Some of those once loyal to Saddam Hussein will get a chance again to run the emerging government there. We'll talk about that in a moment.

O'BRIEN: And Army pilots in the cockpit goes one step further. Those on passenger flights won't be the only ones who are allowed to carry guns. An exclusive just ahead.

HEMMER: Also, a glitch onboard the International Space Station. That is ahead as well. We'll explain that when we come back here right after this.

(COMMERCIAL BREAK)

HEMMER: The top American in Iraq, Paul Bremer, announced a change of policy today toward members of Saddam Hussein's disbanded Ba'ath Party. That change allows thousands of former Ba'athist Army officers and teachers back into their jobs. Some Kurds and Shiites are already protesting the move.

Meanwhile, we are learning more about the Bush administration's plan for the new Iraqi government that is scheduled to take over power on June 30. Administration officials laid out plans before Congress yesterday that would place limits on Iraqi sovereignty, including only partial command of the armed forces. There would also be no immediate authority to enact laws. If a peaceful democracy is to emerge form the current chaos in Iraq, it's certainly going to involve religious understanding between the various Iraqi faiths. Author Bruce Filer is just back from Iraq. He's touched on this in a piece he did for Parade Magazine.

It's nice to have you back with us on AMERICAN MORNING and nice to see you.

BRUCE FEILER, AUTHOR, "ABRAHAM": Nice to see you. It's always nice to be here.

O'BRIEN: Welcome back. You got the inspiration to go to Iraq from an e-mail that you got from a Army chaplain. Tell me about that e-mail. What did he want?

FEILER: Well, basically, as you know, I had written this book after 9/11 about Abraham as the shared father as all three faiths. And an Army chaplain in Baghdad wrote me, he had read the book. He wanted bulk copies of "Abraham" to give out to the troops and to the local religious leaders.

And so we shipped him a bunch of books, and I went and had this Abraham interfaith conversation. And it's really interesting. This is not something that gets a lot of press, but the chaplains in particular under the radar have gone around door to door to mosques, to the Christian churches and developed this relationship, because I think there is an effort among the people of faith in the ground to try to make sure that there is some conversation going on underneath all of the fighting that's going on.

O'BRIEN: So out of the this meeting you say you had between some of the religious leaders and also some of the U.S. religious leaders as well, what came out of that? I mean, was there something more specific than a greater understanding of everybody's religion?

FEILER: Well, I think that -- what's happening I think, for the U.S. soldiers, is that they are all living in these places where all of the bible stories are taking place. And I think for so many of the chaplains that I met and the soldiers, it's a profound experience. But I think what's going on, it's almost like there's a tutorial about democracy going on.

I mean, the way I see this, Iraq is really in a sandwich between Iran on the one side and Turkey on the other side, OK? So Turkey is a democracy with Muslim overtones and Iran is a theocracy with the religious leaders' control of the power. I think so much of the attention is, which way are they going to go?

O'BRIEN: Can a democracy and Islam work together?

FEILER: Well, I actually put that question in those exact words to Paul Bremer. I was sitting like we are sitting right now. And he was saying that he feels that the answer to that is yes.

And I think that -- I don't think they're going to go all the way to Turkey right away, but Paul Bremer said to me that he feels that only 10 percent of the Iraqis are really trying to have a theocracy. And I think really, Soledad, last year when we went in, the number one surprise we had was that they were nationalistic. We expected that there would be flowers and there would be this warm welcome. It turns out they love their country and they didn't want to be occupied as Bremer and the president said.

O'BRIEN: Well, I correct you and say not everyone expected there were going to be flowers and, you know hugs from the people.

FEILER: Well, they thought there would be this great sense of liberation. And it turns out that there was also a sense of defending the nationality. And we're making the same mistake now.

We look at this through the religious prism all of the time. But if you travel, as I did, from south of Iraq al the way to the North, you realize the Shiites in the south, the Sunnis in the middle, the Kurds in the North, there's no way that each of those entities could survive by themselves.

O'BRIEN: So then how do you keep them together? Because, of course, the big question is, you have these factions and different religions across the country. They're very different. To some degree, what they believe is completely the opposite of what the others believe. So how do you bring them together?

FEILER: Well, I think the one thing is there is fear. I kept saying to everybody that I met, "Is Iran a positive example or a negative?" And they said Iran is a negative.

O'BRIEN: People -- Iraqi officials said that?

FEILER: Iraqi officials, Iraqi -- everybody that we met. Paul Bremer said the same thing to me, that he has felt they do not -- Ayatollah Sistani has tried to have one man, one vote, but he's not tried to take over the country. And he could have at any number of points along the way in the last year.

And so I think that the answer is this gets back to our chaplains, this gets back to what we're doing there. We're not fighting a war against Islam.

O'BRIEN: So even Sistani is worried about the Iranian example?

FEILER: Well, I think yes. And he is Iranian, and he could have that power. And he's stepped back because I think we are not fighting a war against Islam. We're fighting a war in part for American values. And that means pluralism. And I think that is one of the great lessons we will leave if, in fact, we can make it work.

O'BRIEN: Bruce Feiler, as always, nice to see you. Thanks.

FEILER: Great to be with you, Soledad.

O'BRIEN: Thank you.

Bill? HEMMER: All right, Soledad. In a moment here, growing fears of a domestic terror attack. The nation's attorney general saying the risk is high. More on why is he saying that and what we're learning in a moment here.

Also, back to that heated controversy about showing somber images of America's war dead coming home. Back after this.

(COMMERCIAL BREAK)

HEMMER: A funeral is now set for tomorrow in North Dakota for that college student, Dru Sjodin. Her body was found last weekend. A suspect accused of kidnapping her days before Thanksgiving from a shopping mall parking lot. Last night on "LARRY KING," her brother and boyfriend remembered her as a very special young woman.

(BEGIN VIDEO CLIP, "LARRY KING LIVE")

CHRIS LANG, SJODIN'S BOYFRIEND: I've learned a lesson through this horrible experience. But that lesson is that it really is a good world out there, everybody. For every monster, there is about a million really wonderful people.

And I've experienced it through -- you know, be it from the National Guard bringing an Army to search for Dru, all the way down to an e-mail from a stranger in Japan, to a gal giving me a hug at a cafe. All of those efforts, they all come from one place, from the heart. And they all mean the same. They all weigh the same, because it is amazing to me what the world has done to support Dru and love Dru.

(END VIDEO CLIP, "LARRY KING LIVE")

HEMMER: Convicted sex offender Alfonso Rodriguez Jr. charged with abducting Sjodin. Police say they found her blood in his car. Federal prosecutors are likely to try this case. They say the kidnapping crossed state lines.

Soledad?

O'BRIEN: Time to check in with Jack and the Question of the Day.

CAFFERTY: Thanks, Soledad.

Pictures of caskets of American soldiers being returned from Iraq are at the center of a huge debate this morning. Three hundred sixty- one pictures from Dover Air Force Base were released under the Freedom of Information Act. The Defense Department has forbidden coverage of returning remains of American soldiers.

The question is, should the Pentagon be able to ban the showing of these pictures of coffins of American military personnel?

Stephanie in Fayetteville, North Carolina, "I'm a military wife and I believe the pictures of the coffins are long overdue. These pictures show how well the brave soldiers were cared for, plus it gives the American public to see the effects of war."

Karrie in Houston, "Since the news media cannot be trusted to accord our military dead the dignity they deserve, at least the Pentagon will."

Joe in Florida: "Every American needs to view these pictures for two reasons. One, the fallen deserve our respect, and their families are understanding. And, two, everyone needs to realize the true costs of this unjustified action that has our country at odds with itself."

And Lou writes from Japan, "I see nothing wrong with the pictures of caskets. The pictures are powerful and people need to realize that people are dying. I think the pictures of funerals, however, invade the privacy of the grieving and should not become media events."

AM@CNN.com.

HEMMER: Images of war, they've always played a role and will continue no matter how long this Iraqi situation continues. Do you think the turning point was -- what was it about a month ago when we held up the newspapers from The New York Times and The Washington Post of those charred bodies hanging from that bridge in Fallujah?

CAFFERTY: Well, yes, that was obvious an ingredient of all this. This was actually begun by President Bush's father during Operation Desert Storm. He was the one who originally banned these pictures. Then President Clinton lifted the ban while he was in office. And now the current President Bush has re-imposed the ban. But Rumsfeld...

HEMMER: Based on that, it's cutting both ways, would you say?

CAFFERTY: Most people suggest -- well, there are two issues, the propriety of the pictures and whether or not the Department of Defense and the Pentagon has the right to impose its will on the media. And they're not the same.

When it comes to the pictures, there's a mixed emotion. When it comes to whether or not the Pentagon ought to be telling us who can see these things, there is pretty much a body of opinion that says they're monkeying in something they don't belong in.

HEMMER: And the only reason they are available is (UNINTELLIGIBLE), Freedom of Information Act.

CAFFERTY: Yes.

HEMMER: Thank you, Jack.

A break here in a moment. Ben Stein is back with us today. He's got another book out. Self-help, witty book, "How to Ruin Your Financial Life." A tongue planted firmly in cheek. Ben Stein next half-hour here.

Opening bell three minutes away here on AMERICAN MORNING.

(COMMERCIAL BREAK) HEMMER: Welcome back. Good morning yet again on AMERICAN MORNING.

As we continue this half-hour, one of the more controversial changes in airline safety coming after 9/11 is the arming of pilots. In a few moments, we'll look inside one of the training facilities where the pilots learn how to use the weapons and do their jobs in the air.

O'BRIEN: Also this morning, Ben Stein has some advice for you. Really, really bad advice. He's got a new book out. It sort of teaches you how to manage your money by daring you to do pretty much everything wrong. He is so funny. We're going to chat with him ahead.

HEMMER: He says the sky is the limit when getting credit on credit cards. Just keep on going. Ben Stein is up in a moment here.

Top stories here at the half-hour.

A coalition soldier in Iraq apparently dying from his injuries earlier today. Military sources say insurgents ambushed a coalition convoy in Karbala, about 70 miles southwest of Baghdad. The wounded soldier died while receiving medical treatment.

Meanwhile, that standoff continues in Fallujah. U.S. commanders there issuing an ultimatum for insurgents to turn in their heavy weapons within days or face an all-out assault.

Sweden's ambassador to North Korea updating details now on that explosion that took place yesterday. The diplomat quoting North Korean officials telling him that the massive blast was caused by a live wire spark. A Red Cross team arriving on the scene. The accident took place in Ryongchon. That's about 30 miles southeast of the Chinese border.

Reports we have now say nearly a hundred dead, more than a thousand injured. Those numbers could change as more becomes available to us.

In this country now, California. A bench warrant impending now for Michael Jackson after his indictment earlier this week. The warrant is routine and the pop star will not be arrested unless he fails to appear for a hearing on the 30th of April.

No trial date has been set. Jackson pleaded not guilty in January to child sex abuse charges.

And reports of trouble on board the ISS, the International Space Station. One of the gyroscopes that keeps the orbiting outpost steady has failed. This just hours after a new crew had arrived there.

NASA says a space walk will be needed to try to fix that. The agency saying there is no danger to the astronauts on board. Keep you posted on that, 245,000 miles above mother Earth.

(WEATHER REPORT)

O'BRIEN: Attorney General John Ashcroft says upcoming political conventions and other election year events could tempt terrorists to attack U.S. soil.

(BEGIN VIDEO CLIP)

JOHN ASHCROFT, ATTORNEY GENERAL: We believe that the terrorists are interested in the United States and in injuring American citizens and disrupting American freedom.

(END VIDEO CLIP)

O'BRIEN: Ashcroft would not talk specifics, but he says that intelligence analysis shows the United States remains a primary target.

Since 9/11 he number of commercial pilots taking training that certifies them to carry guns in the cockpit has nearly tripled. Next week, cargo pilots will begin training as well. Jeanne Meserve now with a report on one of the four facilities where that training takes place.

(BEGIN VIDEOTAPE)

JEANNE MESERVE, CNN CORRESPONDENT (voice-over): Terrorists storm the cockpit of a 727. The pilot shoots them and secures the door. A simulation and demonstration for Homeland Security Secretary Tom Ridge, who traveled to New Mexico this week to watch the Transportation Security Administration train pilots to use guns in the cockpit.

TOM RIDGE, HOMELAND SECURITY SECRETARY: This is a -- I think a terrific investment in just one additional layer of protection.

UNIDENTIFIED MALE: Don't move!

UNIDENTIFIED MALE: Taking care of business.

MESERVE: Hand-to-hand defensive combat, one facet of six days of intensive training. There are interactive video simulations with laser guns. And, of course, there is instruction and practice with real firearms. For security reasons, we cannot identify participating pilots.

UNIDENTIFIED MALE: The program works. I just wish there were more of us.

MESERVE: With this one facility training 100 pilots a week, estimates are less than 3,000 of the country's 100,000 pilots are certified to carry a gun in the cockpit. One critic says the small size undermines the program.

SEN. JIM BUNNING (R), KENTUCKY: My concern is that they won't be the deterrent they could be and national security will be jeopardized. MESERVE (on camera): Bunning wants to expand training and knock down what he characterizes as TSA roadblocks that deter more pilots from signing up, like psychological tests and background investigations that some pilots consider redundant.

MARC FLAGG, CARGO PILOT: Most of the professional pilots have been former law enforcement officers and former military. We have all gone through background checks, held security clearances, handled firearms.

MESERVE (voice-over): Flagg, a cargo pilot and former Navy flyer, backs reform in what he believes is a crucial program. A conviction born of personal tragedy. Flagg's mother and father died on 9/11, when hijackers slammed American Airlines Flight 77 into the Pentagon.

FLAGG: I believe that had the pilots been armed on that day we would of had a different outcome.

MESERVE: And for the pilots who volunteered to train on their own time and money in the New Mexico desert, that is exactly the aim.

Jeanne Meserve, CNN, Washington.

(END VIDEOTAPE)

O'BRIEN: The Transportation Security Administration does not disclose the number of air marshals or flight deck officers trained for security reasons, but the TSA says that thousands of flight deck officers will be trained and in the air by the end of September.

Bill?

HEMMER: Soledad, about 23 now before the hour.

Ben Stein is best known for his dry humor and rather impressive resume. He's also something of an expert on destructive behavior. He has a new book out. It's the latest in his self-help series, another exercise in reverse psychology. And it's called "How to Ruin Your Financial Life."

This past week, I talked to Ben about his ironic take on the road from riches to rags.

(BEGIN VIDEOTAPE)

BEN STEIN, AUTHOR, "HOW TO RUIN YOUR FINANCIAL LIFE": Very few people are very sensible about money. I mean, there are plenty who are fools about money for everyone who is sensible about money. And I felt as if it were a particularly good time to get into it because the baby boom generation of which I am one is racing towards retirement. The outer edge of it has already reached retirement.

They're not doing the right things. There's like 77 million of them, and they're not saving for retirement. Do you know that of the 77 million baby boomers, the average amount that has been saved is something like $40,000 per family?

HEMMER: Is that so? Over a lifetime?

STEIN: That's a joke. Yes, that's how much they have in retirement savings. That's not counting Social Security, but that's a joke. And people have to do more.

So I thought, well, there are a lot of things people aren't doing right. And there are a lot of things they're doing wrong. So I'll make a list of what they're doing wrong. And if you see yourself doing it, stop and do it right.

HEMMER: Let me stop you a second.

STEIN: All right.

HEMMER: Some of your tips, educate yourself about money. Key number one?

STEIN: No. What I say is don't bother to educate yourself about money. Assume that without knowing anything about money you can beat the stock market just by a feeling in your fingertips.

Other tips I have are like, get as many credit cards as you can, max them all out. And when they're all maxed out, get new ones. And you know you're not in financial trouble as long as the credit card companies keep sending you applications for credit cards.

HEMMER: And you just figure the Nasdaq is going to be back to 5,000 any day now, right? I mean that's common thinking.

STEIN: Another rule, never, never, never assume that there are going to be any rainy days. Assume you'll always make tons of money in the stock market, you'll always have a great job, you'll always have wealthy relatives leaving you money. Another one is -- speaking of that very one -- if you're in a stock market bubble, you'll know when to get out. Nobody else will. But you will know when to get out.

HEMMER: Just throw a dart, right?

STEIN: Yes. You'll know when to get out.

HEMMER: I can't believe -- you don't ever advise people saving for retirement, right? Talking about the baby boomers?

STEIN: Save for retirement -- the surest way to really wreck your life is to not have enough savings when you're too old to work. So what I say is don't bother planning for retirement. It's a long way off.

But if you're really sensible about retirement, if you've really got your head screwed on right, you buy variable annuities, you buy mutual funds, you buy individual stocks, you buy real estate investment trusts. But if you really want to ruin your financial life, don't do any of that. HEMMER: A lot of this is tongue-in-cheek, obviously.

STEIN: It's all tongue-in-cheek.

HEMMER: Do you like the word "diversified," by the way?

STEIN: Only sissies diversify.

HEMMER: It's a four letter word, isn't it?

STEIN: Real winners just plunk down every cent preferably on a horse. Gambling with money -- gambling with money is one of the very best ways to ruin your financial life.

HEMMER: Listen, a couple other chapters, shopping is valid exercise. I'm certain the ladies love that. Save only when you feel like it.

STEIN: And if you don't feel like saving, don't do it all. Because somebody else will always take care of you.

HEMMER: Back to a serious note. I like what you said. Money cannot buy you happiness, but poverty can buy you sorrow and misery. And you believe that.

STEIN: Absolutely. I have rarely met a poor person who is happy. And I've met many rich people who are not particularly happy. But poor people are really, really miserable.

HEMMER: Come on. That's a broad brush, my friend.

STEIN: Well, I've known an awful lot of poor people, and I've know an awful lot of rich people. And the rich people generally are happier. I mean, to not go to sleep worrying about how you're going to deal with the bill collectors, to not go to sleep worrying about how you're going to pay your mortgage, those are great things.

(END VIDEOTAPE)

HEMMER: Ben Stein from earlier in the week. He says the best advice in the end, work and save, and then repeat it, work and save yet again. Ben Stein from earlier.

O'BRIEN: Well, still to come this morning, Andy has a check on this morning's market action. And the men of Major League Baseball and they're grooming techniques. We'll explain.

HEMMER: Also, (UNINTELLIGIBLE) who is taking democracy to the people of Iraq. Back in a moment here on AMERICAN MORNING with his story.

(COMMERCIAL BREAK)

HEMMER: Aaron Brown now, and a preview of what's coming up later tonight here on "NEWSNIGHT" -- Aaron.

AARON BROWN, HOST, "NEWSNIGHT": Thank you, Bill.

Tonight on "NEWSNIGHT," a remarkable war story. A war story from more than a half century ago. Twelve U.S. sailors, one German submarine. The sailors captured the sub. You'll hear from four of the heroes tonight.

We'll have that, plus all the day's top new stories, morning papers. It's Friday. That means the tabloids, too, and all of those other things that make "NEWSNIGHT" "NEWSNIGHT."

Bill, have a good weekend.

HEMMER: We'll see you then, Aaron. Thanks. Same to you.

In a moment here, hats and jerseys can have you looking a bit more like your favorite ballplayers. Now Major League Baseball is set to take fandom (ph) to a whole new level. Andy has got that. Back in a moment here with Jack, too, after this.

(COMMERCIAL BREAK)

HEMMER: A check on Wall Street in a moment here. Also, how Major League Baseball is focusing on the sense to win in all of those dollars. Andy Serwer is "Minding Your Business" and checking in with us now.

First, to the markets. Let's do yesterday.

ANDY SERWER, EDITOR-AT-LARGE, FORTUNE MAGAZINE: Yes, a big day yesterday.

(CROSSTALK)

SERWER: No, not so much. On the Nasdaq, Nasdaq is up. That's looking good. Dow is down 22 points.

Over on the Nasdaq, though, Microsoft, which is coming in strong, is up $1.47 to $27. We'll have to see what happens. The Dow may be up later in the day, I have a feeling. Durable goods doing very, very strong.

HEMMER: It is early.

SERWER: That's right. It is early.

Want to do a little sports here right now? Let's talk about the NHL, America's fifth sport, or is it the sixth? Basketball, baseball, football, NASCAR. NHL having some tough times.

The Washington Capitals cutting ticket prices 11 percent. That's not a big story. But it's the 15th team to cut prices for next season.

Have you been watching the NHL playoffs?

HEMMER: As a matter of fact, I have. SERWER: Not a lot of people have. One of the big stories in hockey this year, well, the on-ice mugging, the murder for hire. (UNINTELLIGIBLE) is getting a scrape with a fan. This sport is not in great shape.

HEMMER: But in major league sports, seldom do you ever see ticket prices down. And never do you see half the league do it.

SERWER: That is a point.

Let's switch gears here and talk about baseball. Thank you for bringing up that point. Because that was the salient point, wasn't it? Let's talk about baseball here.

CAFFERTY: You get a lot of help here, don't you?

SERWER: He's good.

CAFFERTY: Yes.

CAFFETY: It's a long program.

Let's make a transition to something a lot more serious and important to all of us, which is the question, the debate, if you will, that's ongoing now this morning about whether or not the Pentagon should be able to ban the showing of pictures of coffins of American military personnel. A thousand letters this morning, which is -- that is a big number for this program. So it's a topic a lot of people are interested in.

Barbara writes from Blacksburg, Virginia, "Let me get this straight. It's OK to use a flag-draped coffin in a political ad for reelection, but you get fired for taking a picture of coffins of our war dead? The only thing consistent about this administration is their consistency on a variety of subjects."

Buck in Charlottesville, Virginia: "Absolutely. The return of our soldiers for their final honors is an intensely private matter. It's not necessary for the media to rudely intrude into this matter. You must also remember that soldiers and their families do not particularly like the media.

Bob in Connecticut: "Let's face it, Jack, these are tasteful pictures that document the truth. What many are really objecting to is the fact that they represent the death of a failed policy."

Thank you for your responses. A reminder to join us for "IN THE MONEY" this weekend, where we will talk to a kid named Nick Warnock (ph) about his experiences of getting fired on "The Apprentice."

Trump executives called this kid "too slick for his own good." How ironic is that? People working for Donald Trump calling somebody else too slick for his own good.

SERWER: It's hard to fathom. CAFFERTY: Yes. We're going to find out what he learned from the Donald and reality TV. Weekend edition of "IN THE MONEY" -- that's the only time it runs, actually -- Saturday...

O'BRIEN: Saturday at 1:00, Sunday at 3:00.

CAFFERTY: Thank you. I'm very tired. I worked awfully hard this morning...

O'BRIEN: Only seven more minutes.

CAFFERTY: ... trying to satisfy the Flack (ph) out in Chicago that works for the mayor's press. A busy morning.

SERWER: Oh, yes. Save some for Monday.

(CROSSTALK)

CAFFERTY: Mrs. Flack (ph). I was told that it's actually the mayor's press secretary.

SERWER: Oh, even better.

CAFFERTY: So Madam Flack (ph).

(CROSSTALK)

HEMMER: Coming up here on CNN, a Kansas town dealing now with a loss at a time of war. More of its sons are still in harm's way today. Live to Daryn Kagan on that next hour on "LIVE TODAY."

We are back in a moment after this on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Guess what? That's it. We're out of time.

SERWER: Not a moment too soon.

O'BRIEN: Exactly.

HEMMER: Apparently. Have a good weekend.

O'BRIEN: Like every Friday, not a moment too soon.

CAFFERTY: What's that?

O'BRIEN: Have a great weekend.

CAFFERTY: Well, and you, too. Yes. Enjoy yourself.

O'BRIEN: Thank you very much.

HEMMER: Your star-studded lineup for "IN THE MONEY," too.

CAFFERTY: I expect you to be watching "IN THE MONEY." HEMMER: You bet we will.

O'BRIEN: Daryn Kagan is over at the CNN Center. She's going to take you for the next several hours on "CNN LIVE TODAY."


Aired April 23, 2004 - 9:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOLEDAD O'BRIEN, CNN ANCHOR: Top officials in the administration give new warnings of terrorists in the U.S. Where are the risks?
It's a test of will in Fallujah, and Marines say their patience is running out. Is it an assault coming?

And Oklahoma whipped by tornadoes all week, and the region at risk again for more severe weather.

Those story all ahead on this AMERICAN MORNING.

ANNOUNCER: From the CNN Broadcast Center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.

BILL HEMMER, CNN ANCHOR: Good morning, 9:01 here in New York. Plenty more today about what caused this gigantic explosion in North Korea. A report in a minute here from one of the closest spots any reporter can get to that scene, just over the border in China.

Earlier, we thought this train collision had taken place. Talking with the Swedish ambassador last hour. You were on the phone with him, Soledad. He says there was some sort of explosion as they were moving freight around. High explosive coming in contact with wires there, so we'll try to get more facts on that today. Not easy to do either.

O'BRIEN: More information finally coming out of there.

Also this morning, our interview with Ben Stein coming up. He's a funny guy; he's a smart guy but I'm not sure you want to get financial advice from his new book. He's got pretty much, I think it's fair to say, a ticket to the poor house. What's it called, what not to do?

HEMMER: All tongue-in-cheek. "How to Ruin Your Financial Life..."

O'BRIEN: "How to Ruin Your Financial Life."

HEMMER: Really funny, clever guy, too. He's coming up this hour.

O'BRIEN: Yes, that's ahead.

HEMMER: Good morning, Jack.

JACK CAFFERTY, CNN ANCHOR: How are you doing? The Question of the Day has to do with an issue that's been on the back burner until about 48 hours ago concerning the war in Iraq. Pictures of the coffins containing the remains of American service personnel coming back from the war theater. All of a sudden, 300-plus have been turned up on the Internet, another one on the front page of a Seattle newspaper, and there are all kinds of repercussions. Is it the right thing to do or not? AM@CNN.com.

O'BRIEN: All right. Thank you, Jack. Look forward to that. Top stories, though, first.

Another coalition soldier wounded in Iraq. Clashes reported there. Military sources say that insurgents ambushed a coalition convoy in the holy city of Karbala about 70 miles south of Baghdad. According to a news release, the soldier was evacuated to a military hospital.

A federal appeals court has cleared the way for the trial of terrorist suspect Zacarias Moussaoui to proceed. Moussaoui is the only person charged in the U.S. in connection with the September 11 terrorist attacks. The court ruled yesterday to lift a ban on prosecutors presenting evidence relating to the hijackings. Jury selection could begin as early as October.

Accusations of misconduct once again plaguing the University of Colorado football program. A woman who claims she was raped by a former player says that the team's coach, Gary Barnett, intimidated her into not pressing charges. A commission is now investigating the possible sexual misconduct charges.

Airport security still lax despite billions of dollars spent in the wake of 9/11. That is according to reports to a House subcommittee. The Homeland Security Department's chief investigator says neither government nor privately screeners performed well in their jobs. An emergency meeting with Homeland Security Secretary Tom Ridge is planned to address the issue.

(WEATHER REPORT)

HEMMER: The Bush administration again putting Americans on alert for the possibility of a terror attack here on U.S. soil. The attorney general yesterday adding to the steady stream of recent warnings. In a moment, we'll talk with a police chief in Miami, Florida, about the concerns he has there and across the country. First, from D.C., and our justice correspondent, Kelli Arena.

(BEGIN VIDEOTAPE)

KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): As al Qaeda or its associates are being blamed for the latest bombing in Riyadh, U.S. officials are becoming increasingly convinced another attack on U.S. soil could take place in the next few months.

JOHN ASHCROFT, ATTORNEY GENERAL: There is without a doubt in my mind a very serious level of activity of terrorism which concerns me greatly. We know that the terrorists have often sought symbolic targeting. ARENA: Ashcroft's comments follow warnings from a myriad of officials from the president on down.

ROBERT MUELLER, FBI DIRECTOR: I think we have to be concerned about the possibility of terrorism attacks between now and the fall. The attacks in Madrid just before the elections there, we should -- we certainly have noted, and we believe al Qaeda has noted.

ARENA: What's more, terrorism analysts believe Islamic extremists are becoming more angry as the U.S. continues to fight for democracy in Iraq. Officials say there is no credible or specific information regarding an attack. No time, place or tactic. Although there is speck take live chatter to that effect.

REP. PORTER GOSS (R), INTELLIGENCE CHAIRMAN: We're going to be on our guard. It's going to make it harder for the terrorists. But wherever they stick their heads up, they know we will be ready to come and get them.

ARENA (on camera): On a more positive note, counter-terrorism officials say the public remains very much on guard. They say calls continue to come in from helpful citizens who are reporting what they believe to be suspicious behavior.

Kelli Arena, CNN, Washington.

(END VIDEOTAPE)

HEMMER: One area of possible terrorists attack that has the FBI showing a lot of interest in is the biological or chemical attack possibilities with a crop duster plane. In the past year, federal authorities have interviewed thousands of pilots and opened several investigations, about 3,000 to be exact. Earlier today, we talked with Miami's chief of police, John Timoney, asking him about sleeper cell activity here today within the U.S. and what he knows.

(BEGIN VIDEOTAPE)

JOHN TIMONEY, MIAMI CHIEF OF POLICE: I can guarantee you from the information that I have that, number one, there are clearly sleeper cells throughout the United States. But also the FBI and the joint intelligence task force is in much better shape now with regards to these ongoing investigations. And they better be because the lesson I think the terrorists learned from 9/11 is that they can affect our daily lives and how we move about, particularly in the major cities.

I think the lessons of Madrid is that they also think they can have an impact or have an effect on an election, which is a real problem for us in the upcoming elections, the two conventions, the G-8 summit in Georgia in June. We've got a tough year ahead of us, including the Olympics in Greece.

HEMMER: You mentioned the Madrid bombings. Back to those in a minute. You also said sleeper cells here in the U.S. Chief, you are privy to much more information than we can ever get here. What can you tell us about what you are learning about sleeper cells? How many in the U.S. today?

TIMONEY: Well, I can't tell you how many, but what I can tell you is there are active investigations going. And the joint terrorist task force is doing a much better job than it ever has.

I think police departments all across America have increased their commitment. For example, in New York, where there used to be 20, there are now about 120 New York city police officers assigned. There have been thousands of FBI agents that formally investigated white collar crime, for example, and narcotics that are now solely involved in terrorist investigations, surveillance, wire tapping.

And so there is a lot of good things going on. And the way we're going to prevent this is by disrupting their operations, number one. But number two, through gaining good intelligence. Wire taps, informants is probably the best way to affect or disrupt these operations.

HEMMER: Chief, can you say that some operations have been disrupted?

TIMONEY: Oh, I think so. I think there is evidence, certainly in New York, we know of at least two. And it's often...

HEMMER: Hang on a second. In New York at least two? Give us more details.

TIMONEY: Well, there were reports of some folks -- some terrorist types surveilling (ph) the Brooklyn Bridge. There was an attempt to explode or cause an explosion on the New York City subway. And we know there have been other incidents.

I just spoke to some colleagues in L.A. yesterday who are very active in this area. And we know for a fact that we're having a good impact.

It's always difficult, however, to measure prevention and what you've prevented. You usually don't find it out until after you've made the arrests. And during the interview stage, the guy will tell you, yes, we were looking at so and so, but for whatever reason, we changed our mind.

(END VIDEOTAPE)

HEMMER: Chief Timoney earlier today. Despite the concerns about attacks, Chief Timoney says he feels the posture of the FBI and the people in the homeland security system have improved since 9/11, going back 31 months.

Also this note from D.C.: members of Congress are concerned that terrorists could target the Capitol Building. So the House yesterday approved a bill to set up special elections in the event that 100 or more of its members are killed. That bill would require special elections to be held within 45 days of a catastrophic event. It's widely believed that back on 9/11 Flight 93, the fourth plane hijacked that day, could have been headed possibly toward the Capitol Building.

Soledad?

O'BRIEN: Another top story this morning, little by little, we're learning more about that devastating train explosion in North Korea. The blast occurred yesterday in the town of Ryongchon, about 30 miles southeast of the Chinese border.

Earlier here on AMERICAN MORNING, the Swedish ambassador to North Korea told us the explosion was apparently caused when a freight car that was carrying explosion sieves touched a live power cable. The ambassador also said North Korean officials told him that all indications are that yesterday's blast was an accident, not any sort of attempt to assassinate the North Korean leader, Kim Jong-Il, who had passed along the same rail lines earlier in that day.

The explosion killed nearly 100 hundred people, injured more than 1,000, according to North Korean officials. The North Korean government is arranging a trip to the accident site for tomorrow morning. And foreign diplomats international aid agencies with supplies will go to that area.

HEMMER: Just a reminder how closed that society is. Reports yesterday they closed down all the telephone lines after this happened. Nobody calls out. No reporters that we know of have been to the site just yet either. So stay tuned for more when we get it.

In a moment here, major U.S. policy change in Iraq. Some of those once loyal to Saddam Hussein will get a chance again to run the emerging government there. We'll talk about that in a moment.

O'BRIEN: And Army pilots in the cockpit goes one step further. Those on passenger flights won't be the only ones who are allowed to carry guns. An exclusive just ahead.

HEMMER: Also, a glitch onboard the International Space Station. That is ahead as well. We'll explain that when we come back here right after this.

(COMMERCIAL BREAK)

HEMMER: The top American in Iraq, Paul Bremer, announced a change of policy today toward members of Saddam Hussein's disbanded Ba'ath Party. That change allows thousands of former Ba'athist Army officers and teachers back into their jobs. Some Kurds and Shiites are already protesting the move.

Meanwhile, we are learning more about the Bush administration's plan for the new Iraqi government that is scheduled to take over power on June 30. Administration officials laid out plans before Congress yesterday that would place limits on Iraqi sovereignty, including only partial command of the armed forces. There would also be no immediate authority to enact laws. If a peaceful democracy is to emerge form the current chaos in Iraq, it's certainly going to involve religious understanding between the various Iraqi faiths. Author Bruce Filer is just back from Iraq. He's touched on this in a piece he did for Parade Magazine.

It's nice to have you back with us on AMERICAN MORNING and nice to see you.

BRUCE FEILER, AUTHOR, "ABRAHAM": Nice to see you. It's always nice to be here.

O'BRIEN: Welcome back. You got the inspiration to go to Iraq from an e-mail that you got from a Army chaplain. Tell me about that e-mail. What did he want?

FEILER: Well, basically, as you know, I had written this book after 9/11 about Abraham as the shared father as all three faiths. And an Army chaplain in Baghdad wrote me, he had read the book. He wanted bulk copies of "Abraham" to give out to the troops and to the local religious leaders.

And so we shipped him a bunch of books, and I went and had this Abraham interfaith conversation. And it's really interesting. This is not something that gets a lot of press, but the chaplains in particular under the radar have gone around door to door to mosques, to the Christian churches and developed this relationship, because I think there is an effort among the people of faith in the ground to try to make sure that there is some conversation going on underneath all of the fighting that's going on.

O'BRIEN: So out of the this meeting you say you had between some of the religious leaders and also some of the U.S. religious leaders as well, what came out of that? I mean, was there something more specific than a greater understanding of everybody's religion?

FEILER: Well, I think that -- what's happening I think, for the U.S. soldiers, is that they are all living in these places where all of the bible stories are taking place. And I think for so many of the chaplains that I met and the soldiers, it's a profound experience. But I think what's going on, it's almost like there's a tutorial about democracy going on.

I mean, the way I see this, Iraq is really in a sandwich between Iran on the one side and Turkey on the other side, OK? So Turkey is a democracy with Muslim overtones and Iran is a theocracy with the religious leaders' control of the power. I think so much of the attention is, which way are they going to go?

O'BRIEN: Can a democracy and Islam work together?

FEILER: Well, I actually put that question in those exact words to Paul Bremer. I was sitting like we are sitting right now. And he was saying that he feels that the answer to that is yes.

And I think that -- I don't think they're going to go all the way to Turkey right away, but Paul Bremer said to me that he feels that only 10 percent of the Iraqis are really trying to have a theocracy. And I think really, Soledad, last year when we went in, the number one surprise we had was that they were nationalistic. We expected that there would be flowers and there would be this warm welcome. It turns out they love their country and they didn't want to be occupied as Bremer and the president said.

O'BRIEN: Well, I correct you and say not everyone expected there were going to be flowers and, you know hugs from the people.

FEILER: Well, they thought there would be this great sense of liberation. And it turns out that there was also a sense of defending the nationality. And we're making the same mistake now.

We look at this through the religious prism all of the time. But if you travel, as I did, from south of Iraq al the way to the North, you realize the Shiites in the south, the Sunnis in the middle, the Kurds in the North, there's no way that each of those entities could survive by themselves.

O'BRIEN: So then how do you keep them together? Because, of course, the big question is, you have these factions and different religions across the country. They're very different. To some degree, what they believe is completely the opposite of what the others believe. So how do you bring them together?

FEILER: Well, I think the one thing is there is fear. I kept saying to everybody that I met, "Is Iran a positive example or a negative?" And they said Iran is a negative.

O'BRIEN: People -- Iraqi officials said that?

FEILER: Iraqi officials, Iraqi -- everybody that we met. Paul Bremer said the same thing to me, that he has felt they do not -- Ayatollah Sistani has tried to have one man, one vote, but he's not tried to take over the country. And he could have at any number of points along the way in the last year.

And so I think that the answer is this gets back to our chaplains, this gets back to what we're doing there. We're not fighting a war against Islam.

O'BRIEN: So even Sistani is worried about the Iranian example?

FEILER: Well, I think yes. And he is Iranian, and he could have that power. And he's stepped back because I think we are not fighting a war against Islam. We're fighting a war in part for American values. And that means pluralism. And I think that is one of the great lessons we will leave if, in fact, we can make it work.

O'BRIEN: Bruce Feiler, as always, nice to see you. Thanks.

FEILER: Great to be with you, Soledad.

O'BRIEN: Thank you.

Bill? HEMMER: All right, Soledad. In a moment here, growing fears of a domestic terror attack. The nation's attorney general saying the risk is high. More on why is he saying that and what we're learning in a moment here.

Also, back to that heated controversy about showing somber images of America's war dead coming home. Back after this.

(COMMERCIAL BREAK)

HEMMER: A funeral is now set for tomorrow in North Dakota for that college student, Dru Sjodin. Her body was found last weekend. A suspect accused of kidnapping her days before Thanksgiving from a shopping mall parking lot. Last night on "LARRY KING," her brother and boyfriend remembered her as a very special young woman.

(BEGIN VIDEO CLIP, "LARRY KING LIVE")

CHRIS LANG, SJODIN'S BOYFRIEND: I've learned a lesson through this horrible experience. But that lesson is that it really is a good world out there, everybody. For every monster, there is about a million really wonderful people.

And I've experienced it through -- you know, be it from the National Guard bringing an Army to search for Dru, all the way down to an e-mail from a stranger in Japan, to a gal giving me a hug at a cafe. All of those efforts, they all come from one place, from the heart. And they all mean the same. They all weigh the same, because it is amazing to me what the world has done to support Dru and love Dru.

(END VIDEO CLIP, "LARRY KING LIVE")

HEMMER: Convicted sex offender Alfonso Rodriguez Jr. charged with abducting Sjodin. Police say they found her blood in his car. Federal prosecutors are likely to try this case. They say the kidnapping crossed state lines.

Soledad?

O'BRIEN: Time to check in with Jack and the Question of the Day.

CAFFERTY: Thanks, Soledad.

Pictures of caskets of American soldiers being returned from Iraq are at the center of a huge debate this morning. Three hundred sixty- one pictures from Dover Air Force Base were released under the Freedom of Information Act. The Defense Department has forbidden coverage of returning remains of American soldiers.

The question is, should the Pentagon be able to ban the showing of these pictures of coffins of American military personnel?

Stephanie in Fayetteville, North Carolina, "I'm a military wife and I believe the pictures of the coffins are long overdue. These pictures show how well the brave soldiers were cared for, plus it gives the American public to see the effects of war."

Karrie in Houston, "Since the news media cannot be trusted to accord our military dead the dignity they deserve, at least the Pentagon will."

Joe in Florida: "Every American needs to view these pictures for two reasons. One, the fallen deserve our respect, and their families are understanding. And, two, everyone needs to realize the true costs of this unjustified action that has our country at odds with itself."

And Lou writes from Japan, "I see nothing wrong with the pictures of caskets. The pictures are powerful and people need to realize that people are dying. I think the pictures of funerals, however, invade the privacy of the grieving and should not become media events."

AM@CNN.com.

HEMMER: Images of war, they've always played a role and will continue no matter how long this Iraqi situation continues. Do you think the turning point was -- what was it about a month ago when we held up the newspapers from The New York Times and The Washington Post of those charred bodies hanging from that bridge in Fallujah?

CAFFERTY: Well, yes, that was obvious an ingredient of all this. This was actually begun by President Bush's father during Operation Desert Storm. He was the one who originally banned these pictures. Then President Clinton lifted the ban while he was in office. And now the current President Bush has re-imposed the ban. But Rumsfeld...

HEMMER: Based on that, it's cutting both ways, would you say?

CAFFERTY: Most people suggest -- well, there are two issues, the propriety of the pictures and whether or not the Department of Defense and the Pentagon has the right to impose its will on the media. And they're not the same.

When it comes to the pictures, there's a mixed emotion. When it comes to whether or not the Pentagon ought to be telling us who can see these things, there is pretty much a body of opinion that says they're monkeying in something they don't belong in.

HEMMER: And the only reason they are available is (UNINTELLIGIBLE), Freedom of Information Act.

CAFFERTY: Yes.

HEMMER: Thank you, Jack.

A break here in a moment. Ben Stein is back with us today. He's got another book out. Self-help, witty book, "How to Ruin Your Financial Life." A tongue planted firmly in cheek. Ben Stein next half-hour here.

Opening bell three minutes away here on AMERICAN MORNING.

(COMMERCIAL BREAK) HEMMER: Welcome back. Good morning yet again on AMERICAN MORNING.

As we continue this half-hour, one of the more controversial changes in airline safety coming after 9/11 is the arming of pilots. In a few moments, we'll look inside one of the training facilities where the pilots learn how to use the weapons and do their jobs in the air.

O'BRIEN: Also this morning, Ben Stein has some advice for you. Really, really bad advice. He's got a new book out. It sort of teaches you how to manage your money by daring you to do pretty much everything wrong. He is so funny. We're going to chat with him ahead.

HEMMER: He says the sky is the limit when getting credit on credit cards. Just keep on going. Ben Stein is up in a moment here.

Top stories here at the half-hour.

A coalition soldier in Iraq apparently dying from his injuries earlier today. Military sources say insurgents ambushed a coalition convoy in Karbala, about 70 miles southwest of Baghdad. The wounded soldier died while receiving medical treatment.

Meanwhile, that standoff continues in Fallujah. U.S. commanders there issuing an ultimatum for insurgents to turn in their heavy weapons within days or face an all-out assault.

Sweden's ambassador to North Korea updating details now on that explosion that took place yesterday. The diplomat quoting North Korean officials telling him that the massive blast was caused by a live wire spark. A Red Cross team arriving on the scene. The accident took place in Ryongchon. That's about 30 miles southeast of the Chinese border.

Reports we have now say nearly a hundred dead, more than a thousand injured. Those numbers could change as more becomes available to us.

In this country now, California. A bench warrant impending now for Michael Jackson after his indictment earlier this week. The warrant is routine and the pop star will not be arrested unless he fails to appear for a hearing on the 30th of April.

No trial date has been set. Jackson pleaded not guilty in January to child sex abuse charges.

And reports of trouble on board the ISS, the International Space Station. One of the gyroscopes that keeps the orbiting outpost steady has failed. This just hours after a new crew had arrived there.

NASA says a space walk will be needed to try to fix that. The agency saying there is no danger to the astronauts on board. Keep you posted on that, 245,000 miles above mother Earth.

(WEATHER REPORT)

O'BRIEN: Attorney General John Ashcroft says upcoming political conventions and other election year events could tempt terrorists to attack U.S. soil.

(BEGIN VIDEO CLIP)

JOHN ASHCROFT, ATTORNEY GENERAL: We believe that the terrorists are interested in the United States and in injuring American citizens and disrupting American freedom.

(END VIDEO CLIP)

O'BRIEN: Ashcroft would not talk specifics, but he says that intelligence analysis shows the United States remains a primary target.

Since 9/11 he number of commercial pilots taking training that certifies them to carry guns in the cockpit has nearly tripled. Next week, cargo pilots will begin training as well. Jeanne Meserve now with a report on one of the four facilities where that training takes place.

(BEGIN VIDEOTAPE)

JEANNE MESERVE, CNN CORRESPONDENT (voice-over): Terrorists storm the cockpit of a 727. The pilot shoots them and secures the door. A simulation and demonstration for Homeland Security Secretary Tom Ridge, who traveled to New Mexico this week to watch the Transportation Security Administration train pilots to use guns in the cockpit.

TOM RIDGE, HOMELAND SECURITY SECRETARY: This is a -- I think a terrific investment in just one additional layer of protection.

UNIDENTIFIED MALE: Don't move!

UNIDENTIFIED MALE: Taking care of business.

MESERVE: Hand-to-hand defensive combat, one facet of six days of intensive training. There are interactive video simulations with laser guns. And, of course, there is instruction and practice with real firearms. For security reasons, we cannot identify participating pilots.

UNIDENTIFIED MALE: The program works. I just wish there were more of us.

MESERVE: With this one facility training 100 pilots a week, estimates are less than 3,000 of the country's 100,000 pilots are certified to carry a gun in the cockpit. One critic says the small size undermines the program.

SEN. JIM BUNNING (R), KENTUCKY: My concern is that they won't be the deterrent they could be and national security will be jeopardized. MESERVE (on camera): Bunning wants to expand training and knock down what he characterizes as TSA roadblocks that deter more pilots from signing up, like psychological tests and background investigations that some pilots consider redundant.

MARC FLAGG, CARGO PILOT: Most of the professional pilots have been former law enforcement officers and former military. We have all gone through background checks, held security clearances, handled firearms.

MESERVE (voice-over): Flagg, a cargo pilot and former Navy flyer, backs reform in what he believes is a crucial program. A conviction born of personal tragedy. Flagg's mother and father died on 9/11, when hijackers slammed American Airlines Flight 77 into the Pentagon.

FLAGG: I believe that had the pilots been armed on that day we would of had a different outcome.

MESERVE: And for the pilots who volunteered to train on their own time and money in the New Mexico desert, that is exactly the aim.

Jeanne Meserve, CNN, Washington.

(END VIDEOTAPE)

O'BRIEN: The Transportation Security Administration does not disclose the number of air marshals or flight deck officers trained for security reasons, but the TSA says that thousands of flight deck officers will be trained and in the air by the end of September.

Bill?

HEMMER: Soledad, about 23 now before the hour.

Ben Stein is best known for his dry humor and rather impressive resume. He's also something of an expert on destructive behavior. He has a new book out. It's the latest in his self-help series, another exercise in reverse psychology. And it's called "How to Ruin Your Financial Life."

This past week, I talked to Ben about his ironic take on the road from riches to rags.

(BEGIN VIDEOTAPE)

BEN STEIN, AUTHOR, "HOW TO RUIN YOUR FINANCIAL LIFE": Very few people are very sensible about money. I mean, there are plenty who are fools about money for everyone who is sensible about money. And I felt as if it were a particularly good time to get into it because the baby boom generation of which I am one is racing towards retirement. The outer edge of it has already reached retirement.

They're not doing the right things. There's like 77 million of them, and they're not saving for retirement. Do you know that of the 77 million baby boomers, the average amount that has been saved is something like $40,000 per family?

HEMMER: Is that so? Over a lifetime?

STEIN: That's a joke. Yes, that's how much they have in retirement savings. That's not counting Social Security, but that's a joke. And people have to do more.

So I thought, well, there are a lot of things people aren't doing right. And there are a lot of things they're doing wrong. So I'll make a list of what they're doing wrong. And if you see yourself doing it, stop and do it right.

HEMMER: Let me stop you a second.

STEIN: All right.

HEMMER: Some of your tips, educate yourself about money. Key number one?

STEIN: No. What I say is don't bother to educate yourself about money. Assume that without knowing anything about money you can beat the stock market just by a feeling in your fingertips.

Other tips I have are like, get as many credit cards as you can, max them all out. And when they're all maxed out, get new ones. And you know you're not in financial trouble as long as the credit card companies keep sending you applications for credit cards.

HEMMER: And you just figure the Nasdaq is going to be back to 5,000 any day now, right? I mean that's common thinking.

STEIN: Another rule, never, never, never assume that there are going to be any rainy days. Assume you'll always make tons of money in the stock market, you'll always have a great job, you'll always have wealthy relatives leaving you money. Another one is -- speaking of that very one -- if you're in a stock market bubble, you'll know when to get out. Nobody else will. But you will know when to get out.

HEMMER: Just throw a dart, right?

STEIN: Yes. You'll know when to get out.

HEMMER: I can't believe -- you don't ever advise people saving for retirement, right? Talking about the baby boomers?

STEIN: Save for retirement -- the surest way to really wreck your life is to not have enough savings when you're too old to work. So what I say is don't bother planning for retirement. It's a long way off.

But if you're really sensible about retirement, if you've really got your head screwed on right, you buy variable annuities, you buy mutual funds, you buy individual stocks, you buy real estate investment trusts. But if you really want to ruin your financial life, don't do any of that. HEMMER: A lot of this is tongue-in-cheek, obviously.

STEIN: It's all tongue-in-cheek.

HEMMER: Do you like the word "diversified," by the way?

STEIN: Only sissies diversify.

HEMMER: It's a four letter word, isn't it?

STEIN: Real winners just plunk down every cent preferably on a horse. Gambling with money -- gambling with money is one of the very best ways to ruin your financial life.

HEMMER: Listen, a couple other chapters, shopping is valid exercise. I'm certain the ladies love that. Save only when you feel like it.

STEIN: And if you don't feel like saving, don't do it all. Because somebody else will always take care of you.

HEMMER: Back to a serious note. I like what you said. Money cannot buy you happiness, but poverty can buy you sorrow and misery. And you believe that.

STEIN: Absolutely. I have rarely met a poor person who is happy. And I've met many rich people who are not particularly happy. But poor people are really, really miserable.

HEMMER: Come on. That's a broad brush, my friend.

STEIN: Well, I've known an awful lot of poor people, and I've know an awful lot of rich people. And the rich people generally are happier. I mean, to not go to sleep worrying about how you're going to deal with the bill collectors, to not go to sleep worrying about how you're going to pay your mortgage, those are great things.

(END VIDEOTAPE)

HEMMER: Ben Stein from earlier in the week. He says the best advice in the end, work and save, and then repeat it, work and save yet again. Ben Stein from earlier.

O'BRIEN: Well, still to come this morning, Andy has a check on this morning's market action. And the men of Major League Baseball and they're grooming techniques. We'll explain.

HEMMER: Also, (UNINTELLIGIBLE) who is taking democracy to the people of Iraq. Back in a moment here on AMERICAN MORNING with his story.

(COMMERCIAL BREAK)

HEMMER: Aaron Brown now, and a preview of what's coming up later tonight here on "NEWSNIGHT" -- Aaron.

AARON BROWN, HOST, "NEWSNIGHT": Thank you, Bill.

Tonight on "NEWSNIGHT," a remarkable war story. A war story from more than a half century ago. Twelve U.S. sailors, one German submarine. The sailors captured the sub. You'll hear from four of the heroes tonight.

We'll have that, plus all the day's top new stories, morning papers. It's Friday. That means the tabloids, too, and all of those other things that make "NEWSNIGHT" "NEWSNIGHT."

Bill, have a good weekend.

HEMMER: We'll see you then, Aaron. Thanks. Same to you.

In a moment here, hats and jerseys can have you looking a bit more like your favorite ballplayers. Now Major League Baseball is set to take fandom (ph) to a whole new level. Andy has got that. Back in a moment here with Jack, too, after this.

(COMMERCIAL BREAK)

HEMMER: A check on Wall Street in a moment here. Also, how Major League Baseball is focusing on the sense to win in all of those dollars. Andy Serwer is "Minding Your Business" and checking in with us now.

First, to the markets. Let's do yesterday.

ANDY SERWER, EDITOR-AT-LARGE, FORTUNE MAGAZINE: Yes, a big day yesterday.

(CROSSTALK)

SERWER: No, not so much. On the Nasdaq, Nasdaq is up. That's looking good. Dow is down 22 points.

Over on the Nasdaq, though, Microsoft, which is coming in strong, is up $1.47 to $27. We'll have to see what happens. The Dow may be up later in the day, I have a feeling. Durable goods doing very, very strong.

HEMMER: It is early.

SERWER: That's right. It is early.

Want to do a little sports here right now? Let's talk about the NHL, America's fifth sport, or is it the sixth? Basketball, baseball, football, NASCAR. NHL having some tough times.

The Washington Capitals cutting ticket prices 11 percent. That's not a big story. But it's the 15th team to cut prices for next season.

Have you been watching the NHL playoffs?

HEMMER: As a matter of fact, I have. SERWER: Not a lot of people have. One of the big stories in hockey this year, well, the on-ice mugging, the murder for hire. (UNINTELLIGIBLE) is getting a scrape with a fan. This sport is not in great shape.

HEMMER: But in major league sports, seldom do you ever see ticket prices down. And never do you see half the league do it.

SERWER: That is a point.

Let's switch gears here and talk about baseball. Thank you for bringing up that point. Because that was the salient point, wasn't it? Let's talk about baseball here.

CAFFERTY: You get a lot of help here, don't you?

SERWER: He's good.

CAFFERTY: Yes.

CAFFETY: It's a long program.

Let's make a transition to something a lot more serious and important to all of us, which is the question, the debate, if you will, that's ongoing now this morning about whether or not the Pentagon should be able to ban the showing of pictures of coffins of American military personnel. A thousand letters this morning, which is -- that is a big number for this program. So it's a topic a lot of people are interested in.

Barbara writes from Blacksburg, Virginia, "Let me get this straight. It's OK to use a flag-draped coffin in a political ad for reelection, but you get fired for taking a picture of coffins of our war dead? The only thing consistent about this administration is their consistency on a variety of subjects."

Buck in Charlottesville, Virginia: "Absolutely. The return of our soldiers for their final honors is an intensely private matter. It's not necessary for the media to rudely intrude into this matter. You must also remember that soldiers and their families do not particularly like the media.

Bob in Connecticut: "Let's face it, Jack, these are tasteful pictures that document the truth. What many are really objecting to is the fact that they represent the death of a failed policy."

Thank you for your responses. A reminder to join us for "IN THE MONEY" this weekend, where we will talk to a kid named Nick Warnock (ph) about his experiences of getting fired on "The Apprentice."

Trump executives called this kid "too slick for his own good." How ironic is that? People working for Donald Trump calling somebody else too slick for his own good.

SERWER: It's hard to fathom. CAFFERTY: Yes. We're going to find out what he learned from the Donald and reality TV. Weekend edition of "IN THE MONEY" -- that's the only time it runs, actually -- Saturday...

O'BRIEN: Saturday at 1:00, Sunday at 3:00.

CAFFERTY: Thank you. I'm very tired. I worked awfully hard this morning...

O'BRIEN: Only seven more minutes.

CAFFERTY: ... trying to satisfy the Flack (ph) out in Chicago that works for the mayor's press. A busy morning.

SERWER: Oh, yes. Save some for Monday.

(CROSSTALK)

CAFFERTY: Mrs. Flack (ph). I was told that it's actually the mayor's press secretary.

SERWER: Oh, even better.

CAFFERTY: So Madam Flack (ph).

(CROSSTALK)

HEMMER: Coming up here on CNN, a Kansas town dealing now with a loss at a time of war. More of its sons are still in harm's way today. Live to Daryn Kagan on that next hour on "LIVE TODAY."

We are back in a moment after this on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Guess what? That's it. We're out of time.

SERWER: Not a moment too soon.

O'BRIEN: Exactly.

HEMMER: Apparently. Have a good weekend.

O'BRIEN: Like every Friday, not a moment too soon.

CAFFERTY: What's that?

O'BRIEN: Have a great weekend.

CAFFERTY: Well, and you, too. Yes. Enjoy yourself.

O'BRIEN: Thank you very much.

HEMMER: Your star-studded lineup for "IN THE MONEY," too.

CAFFERTY: I expect you to be watching "IN THE MONEY." HEMMER: You bet we will.

O'BRIEN: Daryn Kagan is over at the CNN Center. She's going to take you for the next several hours on "CNN LIVE TODAY."