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American Morning

Interview With Washington, D.C. Police Chief Charles Ramsey; Racism Debate Over Cosby Comments

Aired May 27, 2004 - 07:00   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: New terror tactics. New terror recruits. How deep have al Qaeda operatives penetrated into U.S. communities?
Midwestern towns watching the water, hoping flood damage can be held where it is, while in the Caribbean, flood damage is catastrophic.

And the moment fans were waiting for. The songs are over, the reign of the next "American Idol" has begun, on this AMERICAN MORNING.

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

O'BRIEN: Good morning, welcome everybody.

Bill Hemmer, as he mentioned about 5,000 times yesterday, has the day off today and tomorrow. But Anderson Cooper is filling in for him.

We are thrilled to have you, Anderson.

ANDERSON COOPER, CNN ANCHOR: I am thrilled to be here.

O'BRIEN: Thank you very much. Let's start with some of the stories that are making headlines this morning.

COOPER: That's right. The attorney general says that intelligence shows that al Qaeda has plans to, quote; hit the U.S. hard in the next few months.

We're going to talk a lot about the warnings coming from the administration and the response.

James Kallstrom, the senior terrorism adviser to the New York's governor is with us. We'll also talk to Washington's chief of police, Charles Ramsey.

O'BRIEN: Also this morning, Senator John Kerry making national security the focus of his campaign for the next 11 days or so.

We're going to talk to -- the senator's ideas with former Secretary of State Madeleine Albright, find out if she thinks his plan is really all that different from the president's.

COOPER: Also, college tuition skyrocketing, no doubt about it, but there is a way to pay for your kid's education.

David Bach and "90-Second Tips" coming up a little bit later with that.

O'BRIEN: And Jack Cafferty is with us this morning.

JACK CAFFERTY, CNN ANCHOR: Need to be talking to David. I got that education problem going on in my own house. Got to get his advice on how to do that.

COOPER: Jack -- and I know you had a late night watching "AMERICAN IDOL" last night. I know you're very excited about that, too.

CAFFERTY: What -- are you on drugs?

We will journey to the land of the frivolous lawsuit. If you spill a cup of hot coffee in your lap and burn your "situation," then you should go to where you bought the coffee and blame it on them.

If you smoke cigarettes and get lung cancer, of course that's the tobacco company's fault, and there's an even more bizarre example of this that we're going to take a look at in just a few moments, if we can work it in between the replays of "American Idol." We're going to try.

O'BRIEN: We're going to see if we can squeeze it in this morning.

All right, Jack, thanks.

We begin this morning with the terrorist threat against the United States.

A new FBI task force being created to deal specifically with the perceived threat posed to American targets over the next few months.

The nation's top law enforcement officials, including Attorney General John Ashcroft and FBI Director Robert Mueller held a Washington news conference yesterday.

They said intelligence does not point to a specific attack plan. But Ashcroft spoke in stark terms about the challenge being posed by Osama bin Laden's operatives.

(BEGIN VIDEO CLIP)

JOHN ASHCROFT, ATTORNEY GENERAL: Credible intelligence from multiple sources indicates that al Qaeda plans to attempt an attack on the United States in the next few months. This disturbing intelligence indicates al Qaeda's specific intention to hit the United States hard.

(END VIDEO CLIP)

O'BRIEN: Officials are seeking the public's help in locating seven people who are said to be associated with al Qaeda. Six of the seven pictures have been previously released.

Ashcroft said all seven pose a clear and present danger and should be considered armed and dangerous.

Well joining us this morning to put all of this into context is Jim Kallstrom; he is the senior counterterrorism adviser to New York governor George Pataki. He is also a former assistant director of the FBI. He is in Wilmington, Delaware this morning.

Nice to see you, sir. Thanks for being with us.

JAMES KALLSTROM, COUNTERTERRORISM ADVISER TO N.Y. GOV. PATAKI: Good morning, Soledad.

O'BRIEN: The release of these pictures. How successful, generally, is a strategy like this? Is there an expectation that people will see the pictures, call up and turn in those seven people?

KALLSTROM: I think so; I think that's probably the best chance to get those pictures out as wide as you can.

You never know who is going to see those. You never know of the thousands of tips that come in which ones will actually be the right one, so I think that's a smart thing to do.

O'BRIEN: Two of the people seen there are among the 22 most wanted terrorists. The other five; are they terrorists, are they people of interest? Give me a sense of who the other five are.

KALLSTROM: No, I think they're people that absolutely support, you know, the fanatic radicals, the homicidal maniacs that are trying to kill us in large number, or else they wouldn't be up on that screen you're showing, Soledad.

O'BRIEN: Well, let's talk a little bit about the risks. We heard in the press conference yesterday that the focus this summer is potentially looking at plans to disrupt the elections.

Of course, many people are looking, especially when you're talking about here in New York, which is where your focus is now, the convention.

How concerned are you that that could be a reality? That in fact the terrorists are focusing on the conventions, to pull off something?

KALLSTROM: Well, you know, I think the first thing is we need to be focused on the fact that the terrorists are probably here, we've been naive to think they're not. That they can come and go probably not as easy as they could prior to 9/11, but they still can.

Those events are very symbolic -- on the other hand they're very safe. The events themselves are very safe. But the timing of those events give the terrorists opportunity from a timing standpoint to have more symbolism to their events wherever they may be.

O'BRIEN: These pictures obviously released on television, they're also on the FBI's Web site, FBI.gov, but I would imagine that actually where they need to be is in the heart of the Muslim community where many of these folks will probably be living, in those kinds of communities. How do you do that?

KALLSTROM: Well, there's no question we need the cooperation of all Americans and everyone here in this country whatever status they're in.

We had a press conference, Soledad, two days ago with the governor of New York, the governor of Vermont and the FBI director talking about a new information sharing regime with state and local police, which is I think critically important to protecting this country.

The idea of having police on the street, police that know the neighborhoods, patrol our highways, have better information, have information on indications and warnings of what terrorists are, how they operate, how they surveil, their modus operandi, and at the same time have access to the myriad of data bases in Washington so that if we come upon people through normal police work we're not going to let some terrorists through our grasp.

O'BRIEN: Jim Kallstrom joining us this morning. Nice to see you. Thanks for being with us.

KALLSTROM: Thank you, Soledad.

O'BRIEN: Anderson.

COOPER: Well, today, John Kerry will begin laying out his positions on national security and foreign policy. The Democratic presidential candidate will devote the next 11 days to getting out his message.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: Our young men and women are dying in another country, in several other countries, and the threat of terror is very real, and I think I can wage a more effective war on terror than George Bush is. I think we can do a better job of building America's safety and security.

(END VIDEO CLIP)

COOPER: The candidate is in Seattle today. He'll talk about building stronger relations with U.S. allies.

Earlier this morning I spoke with former Secretary of State Madeleine Albright. I started by asking her what she thinks Senator Kerry can do to improve the international ties that President Bush cannot.

(BEGIN VIDEOTAPE)

MADELEINE ALBRIGHT, FORMER SECRETARY OF STATE: Well, I think that Senator Kerry has a record of working with the -- understanding foreign relations, having the confidence of a lot of foreign leaders.

And I think that what's happened is that President Bush has squandered the credibility of the United States, and we really need a new leader in order to try to regain the position that we had in the world.

COOPER: Kerry seems to have made a political calculation of sort of standing back, not being in the forefront, talking about Iraq, allowing the president to sort of remain in the harsh spotlight on this.

Even in these next several days when John Kerry is going to be focusing on national security issues and foreign policy, he's not really going to be talking primarily about Iraq. Is that a wise strategy?

ALBRIGHT: Well, I think he's doing a very smart thing, which is basically to explain an overall national security strategy and explain that, in fact, America's stronger with alliances because they are force multipliers, they don't weaken us, they strengthen us.

He is talking about the necessity of really having a military force that is properly equipped and trained, and he is discussing he importance of not being dependent on Middle East oil and talking about Iraq.

So, I think he's putting the Iraq mess into an overall context and I think that is very important for the American people.

COOPER: But as the president's position has moved, some would argue closer to what Kerry was arguing a while back, though Republicans might disagree with that -- does John Kerry need to continue to show or to show how his policy is different than George Bush's -- and -- I mean is his policy different?

ALBRIGHT: Well, I think that what's different is that Senator Kerry suggested internationalizing this force about 600 days ago and if President Bush had followed some of the advice of Senator Kerry we might not be in this disastrous free fall, and what Senator Kerry is doing is saying that the Iraq issue and fighting terrorism needs to be viewed in a larger context while making clear that we have to change course while making also clear that we have to end what's going on in Iraq in a peaceful way and try to get security there.

COOPER: Some liberal Democrats are calling for a pull out deadline. One group is even going to be running ads on this. Is a pullout deadline something that John Kerry should consider?

ALBRIGHT: Well, I speak for myself here. Because I think that sometimes deadlines create more problems because they give the enemy a date to work against.

What needs to happen is to have certain activities, benchmarks, and the turning over of Iraq to the Iraqi people is what is essential here and providing security in the speech that President Bush gave he did talk about the importance of security, but I don't think he outlined fully enough how we get that kind of security and security there is what is needed in order to move to an election process and truly turning sovereignty over to the Iraqis.

COOPER: How confident are you that the United Nations will be able to, in a timely manner, come up with some form of government or transitional government that works?

ALBRIGHT: Well, I think the U.N. is a key aspect of this and what is unfortunate is that we spent so much time pulling down the reputation of the U.N. when in fact we should be supporting it because it is a way to get the situation in Iraq internationalized and to have some greater legitimacy for whatever government interim or transitional is set up in Iraq, so I think we need to support the U.N. and I hope very much that Secretary Powell is working very hard on trying to get a resolution in the United Nations that will provide that kind of structure and allow the internationalization of the Iraqi issue.

(END VIDEOTAPE)

COOPER: That was former Secretary of State Madeleine Albright -- Soledad.

O'BRIEN: Reports from Haiti and the Dominican Republic say 1,000 people are dead from storms and flooding on the Caribbean island of Hispaniola. Severe rain over the weekend led to floods that wiped out entire villages. At least 1,000 more people are still missing.

The Red Cross and other international agencies are bringing food and drinking water to survivors, and U.S. Marines are aiding in relief efforts there.

Turning now to the Midwest, where the governor of Illinois has issued a disaster declaration for flooded communities, but already the Des Plaines River is beginning to recede and residents are hoping that some expected good weather will help them.

Keith Oppenheim is live for us this morning in Gurnee, Illinois. Nice to see you, Keith. Good morning.

KEITH OPPENHEIM, CNN CORRESPONDENT: Good morning to you, Soledad. Things are actually looking better here, although at first it's not going to look like it at all. I'll give you the good news and the bad news.

The bad is that so far here in Gurnee, about 40 homes and 25 businesses damaged.

I'll give you a quick tour, if you look over here you'll see that there is a gazebo that's well underwater and if you look in this direction you'll see some of the businesses that I'm talking about. The Dairy Queen and insurance center that is still well surrounded by water.

We'll take you to another live camera perspective of the Gurnee Community Church, which has a sign that says "We've Got Peace Like A River." They're taking it in stride, but around that church it's pretty much a lake.

Yesterday, the governor of Illinois declared parts of two counties in northern Illinois state disaster areas, so the good news is that the state is trying to free up money for recovery and also may apply for federal aid.

We'll take you back live and you can see that there are roads now, which are looking dry, and in comparison to yesterday, it's really an improvement because the water is starting to pull back.

Now back by this insurance center that I'll point down here to the concrete on the wall -- and this is a water mark which indicates how high the water was yesterday, so that's an indication that things are really improving quite a bit.

In fact, by Saturday we're expecting that this water will be gone, or at least that's the prediction and the hope.

Can see the good work that the volunteers did behind us with all that sandbagging that was done. In Des Plaines, which is downstream from here, Soledad, they still have problems.

The predictions are that its not going to be nearly as bad as they thought it would be, but the cresting of that river, the high point, should be by sometime tomorrow at nine feet, four feet above flood stage, but not the six feet that they thought it would be.

So, you know, bad news is all relative. Back to you.

O'BRIEN: Exactly. And some much needed good news you're reporting for us this morning. Keith Oppenheim for us. Thanks. Appreciate it.

(WEATHER REPORT)

O'BRIEN: Well, it is 15 minutes past the hour, it's time to...

COOPER: It's flying by -- time is flying by.

O'BRIEN: You know what, Anderson? Because you're here. That's why.

Time to take a look at some of the other stories that are making headlines today. Heidi Collins sitting in for us. Hello, good morning again.

HEIDI COLLINS, CNN ANCHOR: Good morning to the both of you guys. Anderson, welcome. And good morning to you, everybody.

Want to get to the headlines now right away today.

The British government expected to announce today it will be sending more troops to Iraq. The Defense Ministry spokesman tells CNN British Defense Secretary Geoff Hoon will make the announcement in the House of Commons this afternoon. The deployment comes in response to the needs of commanders on the ground, according to the spokesman. British officials confirm there are roughly 8,000 troops stationed in Iraq right now.

British police now have a terror suspect in custody after acting on a U.S. extradition request. British police won't confirm it but sources say Egyptian-born cleric Abu Hamza al Masri will be in court today. His British nationality was revoked on charges he supports terrorism. Al Masri has one eye and steel hook for a right hand from fighting in Afghanistan.

In Eagle, Colorado, we could see a trial date set today in the Kobe Bryant case as the NBA star heads back to court. Attorneys for Bryant want an expert witness from the O.J. Simpson case to testify but prosecutors are expected to argue against that move. Bryant is facing one charge of sexual assault. He says the sex was consensual. We will of course head live to Eagle in our next hour.

In basketball now the Detroit Pistons now ahead of the Indiana Pacers after taking Game Three of the Eastern Conference Finals. Rasheed Wallace and Richard Hamilton with 20 points each lead Detroit to an 85-78 victory in the seven game series. The Pistons stay at home for Game Four tomorrow night.

And in matters of the heart, they always like to do these stories, matters of the heart, a new study shows women over the age of 40 are more likely than older men to ask for a divorce.

The AARP study found that older women seem more aware of problems in their marriages, while 26 percent of men said they never saw it coming. The study also shows most older divorcees move on to other serious relationships and stay sexually active.

O'BRIEN: Guys never see it coming. Why? I had no idea.

COOPER: Yikes.

O'BRIEN: All right Heidi, thanks.

COOPER: Time for the Cafferty File and the "Question of the Day" from Jack who always sees it coming -- Jack.

CAFFERTY: Little guy bashing going on here.

O'BRIEN: Sorry. Sorry. We're doing some chick bonding. Go ahead.

CAFFERTY: Nation's courts don't have enough lawsuits. They need this. "The New York Times" reporting this morning -- a man is suing his diet. Well, sort of. 53-year-old Jody Gorran is suing the estate of Dr. Atkins and the Atkins Company for $28,000.

He said that after following the Atkins Diet for two years his cholesterol levels went up, clogging his arteries and requiring a procedure to open them. Let's see -- the Atkins diet includes things like bacon and eggs and cheese and hamburgers and... A representative for Atkins Nutritionals told the "Times" they stand by the science of their diet. This is apparently the first lawsuit involving the controversial low carb diet, but it probably won't be the last, especially if the guy wins, although some legal experts say he doesn't have much of a chance.

Here's the question: should you be able to sue your diet? AM@cnn.com.

O'BRIEN: How about for not losing weight on it? That would be a good lawsuit.

CAFFERTY: You think?

O'BRIEN: Yes. I've been on this two weeks, I haven't lost a pound.

CAFFERTY: I don't understand any of this stuff. You make a choice to do something; unless you're mentally deranged in some way, your life -- it's a free country.

If it doesn't work out -- yes -- buy a ticket, take a chance. Ride the Ferris wheel at your own risk. You know. And if it doesn't work out it's nobody's fault. It's just -- it doesn't work out.

O'BRIEN: I hear you.

COOPER: See, Jack's a little grumpy because Diana DeGarmo didn't win last night on "American Idol" and I know he was really hoping -- he was dialing in that number all night long; that's why he was a little tired...

O'BRIEN: On his cell phone.

(LAUGHTER)

Which he doesn't have.

COOPER: Well I don't need to tell you all because I've talked about it all morning, the country has a new American Idol. Fantasia Barrino was announced as the winner of the Fox TV show last night.

The 19-year-old single mom from North Carolina beat Jack's favorite, Diana DeGarmo.

(BEGIN VIDEO CLIP)

RYAN SEACREST, "AMERICAN IDOL": And the winner of "American Idol" 2004 is Fantasia Barrino.

(END VIDEO CLIP)

COOPER: It was -- she rocked last night. Check out the scene in Fantasia's hometown of High Point, North Carolina. In a stadium.

Look at that -- a stadium filled with people. Fans went wild. The singer got possibly the ultimate compliment, acerbic British judge Simon Cowell declared her the best "American Idol" contestant yet. I think he even shed a little bit of a tear.

Barrino wins a lucrative record contact as well.

O'BRIEN: Good for her.

COOPER: Absolutely. She was great. And you know what? She broke a heel on her shoe and for the entire time she continued to sing with one heel.

O'BRIEN: Oh my God. Every woman...

COOPER: Is that not an "American Idol"?

O'BRIEN: She can do it all. Fantasia. I'm so proud of you, girl.

COOPER: She was going good, though.

O'BRIEN: All right. Well, you know, as you can see here, we had a "Jeopardy" champion with us.

COOPER: Oh, I don't want to brag, but I appreciate you bringing it up.

O'BRIEN: Congratulations on that.

COOPER: Have you seen my new business card? Anderson, "Jeopardy Champion."

O'BRIEN: We like it. So -- guess what? I'm going to put you on the spot and do the national Geography Bee as well. OK, so, here.

COOPER: OK.

O'BRIEN: Answer cards. It's sort of an envelope, really. But -- right on the other side there. Here. Right there. Your magic marker. This is a story.

Geography champ was crowned yesterday in Washington. We're going to play the winning question and we're going to give you an opportunity to see if you can beat the young teenager who got it right.

COOPER: If it's obscure countries I know it -- all right.

O'BRIEN: Here we go. Hang on, here we go.

(BEGIN VIDEO CLIP)

ALEX TREBEK, HOST, NATIONAL GEOGRAPHY BEE: Peshawar, a city in the northwest frontier province of Pakistan. Has had strategic importance for centuries because of its location near what historic pass? Peshawar, in the northwest part of Pakistan. Important strategically because its close to what historic pass? (END VIDEO CLIP)

COOPER: Come on! Come on -- the Khyber Pass.

O'BRIEN: You're going to get all snitty. Let's see. You've got to hold it like this.

COOPER: Khyber Pass. That was my answer. If I'm wrong, I'm dead.

O'BRIEN: Unfortunately we can't read your sloppy handwriting.

COOPER: It says Khyber. I was so disgusted it would -- with the ease of the question I barely scrawled it out.

O'BRIEN: Well let's see exactly if you're right.

COOPER: If I'm wrong, I'm leaving.

O'BRIEN: Won't you be embarrassed.

COOPER: All right.

O'BRIEN: Here's Alex with the answer.

(BEGIN VIDEO CLIP)

TREBEK: The correct response is the Khyber Pass and that means that Andrew (UNINTELLIGIBLE) congratulations young man.

(END VIDEO CLIP)

COOPER: I rule. Thank you. Thank you.

O'BRIEN: We worship you. We worship you. Anderson you get to come back tomorrow and collect your award.

COOPER: I beat a 14-year-old.

O'BRIEN: Fourteen-year-old Andrew Wotanick (ph) of Oakland Pass (ph) in Kansas was the real winner. He took home $25,000 college scholarship. He's actually chatting with Daryn Kagan in a little bit.

COOPER: I'll take him on.

O'BRIEN: Congratulations if you were able to do what a 14-year- old...

COOPER: Middle aged Celebrity Jeopardy champion, so it's kind of like a couple of notches down. Kind of a dumbed down version.

Still to come this morning, could this weekend's big event on the Washington Mall be a target for terrorists?

O'BRIEN: Also this morning Wal-Mart is looking for a piece of the action in Chicago, but many people actually don't want them on their turf.

COOPER: And amid rising gas prices this vehicle gets over 2,400 miles to the gallon. Stay with us on AMERICAN MORNING.

(COMMERCIAL BREAK)

COOPER: Well it took some muscle but Wal-Mart is moving into another big city. Here with that Andy Serwer who is "Minding Your Business."? Good morning, Andy.

ANDY SERWER, "FORTUNE" MAGAZINE: Good morning Mr. Khyber. That's what I'm calling you from now on.

COOPER: So Wal-Mart in Chicago?

SERWER: Yes, that's what happened. The City Council voted yesterday 32-15; it wasn't even close, to let Wal-Mart into the Windy City.

On the west side, it was a partial victory, because they did shut them down, not letting them open a store on the south side of Chicago. No store for Leroy Brown, I guess.

Lot of controversy, of course, about opening up Wal-Marts, but they got this one in Chicago. Now only two big city's left -- New York and Detroit are the only large metropolitan areas without Wal- Mart. That's correct.

And you want to talk about the markets?

COOPER: Yes, let's do that.

SERWER: Yesterday, a bit of a mixed bag yet again. We've been doing this over and over. And this is after Tuesday's big run up. We didn't get any follow through, as they like to say on Wall Street.

You see the Nasdaq is up nicely you guys. Text stocks actually been doing pretty well this year. Companies like eBay have been on fire and the futures are up stronger this morning. One quick note, Wal-Mart hired a pollster before the vote to connect people who are for the stores directly to the aldermen to lobby.

COOPER: Wow.

SERWER: And a lot of people a little bit unhappy with that. But they got the job done.

O'BRIEN: And they got the dough to do it.

SERWER: Yes they do.

O'BRIEN: That worked. All right, Andy, thanks.

Still to come this morning Washington, D.C. takes action against the threat of an al Qaeda attack and entertainer Bill Cosby not apologetic. In fact, he's defiant in pushing his controversial position. We'll talk about that just ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Good morning, welcome back everybody. Just about half past the hour on this AMERICAN MORNING.

Anderson Cooper is filling in for Bill Hemmer who has the next two days off.

Some of the headlines to start with this morning.

Terror alert levels are staying where they are for now, but the level of anxiety way up. This morning, we talk about law enforcement's response to the warnings from the attorney general and Washington's -- rather with Washington's police chief, Charles Ramsey. And there he is right there. We're going to chat with him in one moment.

COOPER: Also, last week, Bill Cosby put himself at the center of a controversy for some comments he made about lower-income African- Americans. Yesterday, he had a chance to elaborate on those comments, maybe let some of the air out of the story. We're going to take a look at what he did instead.

O'BRIEN: Also this morning, with the price of college tuition skyrocketing, saving for your child's education often seem like one step forward and two steps back. In just a few minutes, our personal money coach, David Bach, will tell you how to get ahead of the problem.

COOPER: Well, the nation's top law enforcement officials maintain there is no specific or credible terrorist threat against any target or even in the U.S. no specific threat. One of the high- profile events mentioned as a possible target is this Saturday's dedication of the National World War II Memorial on the Mall in Washington. City officials say more than 140,000 people, many of them elderly, are expected to attend the event.

An unprecedented security operation is being organized. It includes special support and response teams, plus some 1,000 law enforcement officers. Chemical and biological sensors already in place on the Mall will be supplemented with radiological detection equipment.

Joining us now from Washington is the city's police chief, Charles Ramsey.

Chief, thanks for being on the program this morning.

CHIEF CHARLES RAMSEY, WASHINGTON, D.C. POLICE: Thank you.

COOPER: Have your preparations changed in any way after yesterday's announcement by the FBI and Justice Department?

RAMSEY: No. Actually, we've been planning this event for quite some time. The U.S. Park Police is actually the lead agency. My department just acts in support. But there are a lot of agencies working together. I wasn't aware the news conference was going to take place, but the information presented was not new to those of us in law enforcement.

COOPER: So, when they put forward photos like they did yesterday, those seven photos of people and say be on the lookout, is that something that filters down to your department? I mean, do you suddenly get those photos and carry them around? Or is it not that specific?

RAMSEY: No, we got the photographs late yesterday. In fact, we're printing a bulletin up now that we can distribute to all of our members and make sure that they are in our database.

COOPER: I understand the D.C. police operate on levels from 1 to 5, and that you're at level 1 right now, which is actually the lowest level. Does that mean you are sort of not all that concerned about an imminent attack?

RAMSEY: Actually, we just recently changed to more closely mirror the federal color code system, so we're actually at what we consider to be yellow. But we're always at an elevated level here in Washington, and we have been since 9/11. So, there's not a drastic change in what we do when things like this come up.

COOPER: Obviously another big celebration coming forward is July 4. Are preparations for that any different from this weekend?

RAMSEY: Actually, the preparations for that are fairly similar to what you'll see this weekend. We'll have more people actually for the Fourth of July. They get close to a million people down on the Mall for that particular event. So, we'll be working very closely with the Park Police again for that event, and we don't anticipate any problems. And as you mentioned earlier, we have not received any specific information, but, obviously, we have to be very alert.

COOPER: Chief of the D.C. police, Charles Ramsey, thanks for being on AMERICAN MORNING.

RAMSEY: Thank you.

O'BRIEN: Well, comedian Bill Cosby's remarks about low-income African-Americans failing themselves caused instant outrage when he made them at Howard University last week. But as CNN's Tom Foreman reports, Mr. Cosby is not backing down.

(BEGIN VIDEOTAPE)

TOM FOREMAN, CNN CORRESPONDENT (voice over): Cosby came to public television to explain why he is speaking out against problems in the black community.

BILL COSBY, COMEDIAN: You can't just blame white people for this, man. You can't. Whether I'm right wing or left, some people are not parenting. FOREMAN: Back in Washington, D.C., the switchboard is still lighting up at radio station WOL every time they air the speech Cosby made, which started this controversy.

COSBY: Lower economic and lower middle economic people are not holding up to their end in this deal.

FOREMAN: The comedian said those words during a fund-raiser for Howard University and went on to attack African-Americans who waste money, who use improper English, who are single parents.

COSBY: No longer is a person embarrassed because they are pregnant without a husband. No longer is a boy considered an embarrassment if he tries to run away from being the father.

FOREMAN: Cosby's comments were spurred when a 12-year-old Washington girl was injured by a stray bullet from a gun fight. The police chief criticized the culture of violence. Cosby went after the families of young men who wind up being arrested.

COSBY: Where were you when he was 2? Where were you when he was 12? And how come you don't know he had a pistol?

FOREMAN (on camera): Cosby has angered some African-Americans, despite many years of fund-raising and activism in the black community.

(voice over): But if they are waiting for an apology...

COSBY: For God's sake, turn around and let's have some meetings and say, brother, let me explain to you.

FOREMAN: ... he is making it clear they can keep waiting.

Tom Foreman, CNN, Washington.

O'BRIEN: Bill Cosby's comments have been the subject of editorials from coast to coast.

COOPER: And still to come on AMERICAN MORNING, things have already changed at Abu Ghraib prison, and the Pentagon has a bigger move still to come. We'll talk about that.

O'BRIEN: Also, the airlines are taking action on the high fuel prices. It's going to affect the bottom line of your ticket price. We'll explain.

COOPER: Oh, that doesn't sound good.

And paying for your kid's college. There are several different ways. We're going to get some advice just ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: When it comes to saving for a child's college education, the earlier the better is a good rule of thumb. Still, with tuition outpacing inflation, it's hard for parents to avoid the sticker shock.

Well, our personal finance contributor, David Bach, joins us this morning to ease some of the pain in your pocketbook. In this week's "90-Second Tip" segment, he's got advice to help parents save and pay. David Bach is the author of best-selling book, "The Automatic Millionaire."

Nice to see you. Good morning.

DAVID BACH, CNN PERSONAL FINANCE CONTRIBUTOR: Good to see you. Good morning.

O'BRIEN: Let's get right to it. How early -- some people begin saving for their child's college education literally the minute the child is born.

BACH: Absolutely. And that is the easiest thing to do. I always tell young parents, look, a latte a day, if you cut that out and put that money away in a college savings account, you can have enough money for college.

O'BRIEN: Really?

BACH: Easily, if you start when they are born. The unfortunate thing is most parents wait until their kids are 10, 11 or 12, in many cases when they're taking the PSAT test. Too late. Start when they're young, and it's easy. Ten dollars a day will get you there.

O'BRIEN: There are some savings options as well.

BACH: Yes.

O'BRIEN: Let's talk about a couple. The first is the 529 Plan. Walk for me very specifically, what is it, and how does it work?

BACH: All right, there are two types. There is prepaid and then there is also the 529 Plan. The college 529 Plan is great. This is the 401(k) plan of college savings. You can put money into these plans up to $250,000 away. This money grows tax-free. It's in the parents' names, so the parents control the money. Very important. The key thing is that the money comes out, provided you take it out for educational costs, tax-free.

So, you've got tax-free growth, tax-free distribution, parent controls the money, and you can also have other people fund it. So, you can have your grandparents put money into the account. Great, great tool.

O'BRIEN: How about the college savings plan?

BACH: The college savings plan is what we call a prepaid plan. That's where you're getting a state plan. You're basically locking in the cost of college. This protects you against inflation. A lot of people like that. It's very conservative.

What's the disadvantage? When you put money in these prepaid plans, when you go to get what we call financial aid, which most students do, they look at how much money you've put in those plans, and they hit you dollar for dollar on them. So, it affects your ability to get financial aid. So, that is one thing parents really need to know about before they do it.

O'BRIEN: All right. What about your own IRA? Can you take money out of your IRA to fund your kid's tuition without being penalized?

BACH: This is a great question, and most people don't realize it's yes, you can. You can fund a regular IRA account or a Roth IRA. And if you take the money out for educational costs, you'll pay taxes on it, but you won't pay that 10 percent penalty. So, if you're under the age of 59 and a half, know that you can access that money without penalty, but you will pay taxes.

O'BRIEN: There is a way that grandparents, you cay, can help here. And this is really the tricky part, because, of course, what colleges look at is your parents' financial statements. And so, if you are sort of middle-class or upper middle-class...

BACH: Right.

O'BRIEN: ... essentially, you're in big trouble because you get no money.

BACH: There are a lot of grandparents out there, especially right now watching CNN in the morning, that have a lot of money. You can put money, again, into a 529 Plan for your grandchildren. You can put it in your name. So that doesn't affect your child -- your grandchild's ability to get financial aid.

And also, what people should know is that we hear about how you can put $11,000 a year away estate tax-free. With the 529 Plan, you can actually put up to a lump sum per person of $55,000. So, what we're seeing couples do is you can actually put as much as $110,000 away in a 529 Plan for your grandchild.

O'BRIEN: Better that the grandparents fund that.

BACH: Fantastic. And we're seeing a lot of grandparents do this, because they have estate-planning issues. They want to help the grandchildren. And it's really a wonderful tool to consider.

O'BRIEN: How much money at the end of the day are you aiming for? If you want to send your kid to college, I mean, what's the number? Is it $250,000?

BACH: A whole lot of money. Yes, what they're saying right now is if you have a child who is 1, about $200,000 to $250,000 is what you're going to need in 18 years.

O'BRIEN: That's just tuition.

BACH: Well, it's tuition, it's room, it's board, it's everything. But I know parents right now that will say, David, that's ridiculous. I'm spending $40,000 a year for the private education, so we're already there.

O'BRIEN: Right.

BACH: Bt that's the national average that we hear about, and that's for a private school.

O'BRIEN: Those numbers are so scary, aren't they?

BACH: They really are, because college...

O'BRIEN: Look at me, I'm going to have four kids.

BACH: I know. What's scary about it is that the cost of college is going up about three times the rate of inflation. So, when you look at the cost of everything, probably one of the most expensive things we'll have 10, 15 or 20 years from now, aside from health care, is education costs.

O'BRIEN: All right, well, people really have got to start thinking about it. David Bach, as always, nice to see you.

BACH: Soledad, good to see you.

O'BRIEN: Thanks for stopping by. Appreciate it. David, of course, is the host of his own nationally-syndicated radio show. It airs Saturday afternoons on Sirius Satellite Radio. And, of course, he joins us each week right here on AMERICAN MORNING with tips on how to improve your financial life -- Anderson.

COOPER: Soledad, still to come, Senator John Kerry seek to end days of speculation over when he'll accept the Democratic presidential nomination. That news ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

COOPER: And a busy morning already. It is 46 minutes past the hour. Time for a look at some of today's news with Heidi Collins -- Heidi.

HEIDI COLLINS, CNN ANCHOR: Thank, Anderson.

Citing a credible threat, the Justice Department is warning Americans to be on alert this summer for possible terror attacks. Attorney General John Ashcroft and FBI Director Robert Mueller revealed the identities of seven terror suspects yesterday during a news conference, who they said were linked to al Qaeda.

Ashcroft said they all pose a clear and present danger to Americans and should be considered armed and dangerous. We're going to have a live report from Washington for more details on this just ahead.

There is also word this morning the U.S. military will be out of Iraq's Abu Ghraib prison by August, turning over control to Iraqi security forces. That's according to "The Washington Post." The newspaper says the detainees in the jail will not likely be held there, but instead will be transferred to another facility.

In Monday's primetime speech, President Bush mentioned the Baghdad-area prison should be torn down.

Convicted Oklahoma bombing conspirator Terry Nichols could now face the death penalty after a jury found him guilty on state murder charges in the 1995 attack. The decision was handed down yesterday. Nichols is already serving life in prison after an earlier conviction on federal charges. The terror bombing killed 168 people in 1995.

Presidential hopeful John Kerry says he plans to accept his party's nomination at this summer's Democratic convention in Boston. In a written statement yesterday, Kerry put to rest speculation he would delay the acceptance in order to improve his financial footing. Once nominated, campaign finance legislation limits a candidate's spending to $75 million.

And a handful of Indiana High School students are pushing the boundaries of fuel efficiency. Their car design earned first place in a state-wide fuel-efficient car contest. It took them two years to make, but now the car goes 30 miles an hour. It gets about 2,400 miles to the gallon. So, maybe it doesn't move so fast, but it's great gas mileage.

Back over to you, guys.

COOPER: Thanks very much, Heidi.

United Airlines is feeling the pressure from high fuel prices. With that and our market preview, Andy Serwer is "Minding Your Business."

Hi, Andy.

ANDY SERWER, "FORTUNE" MAGAZINE: Good morning again, Anderson.

You know, these higher fuel prices have been wreaking havoc on the airline business, and they've been trying to raise prices, and then they cut prices. It's a game of chicken back and forth to see who is actually going to do it. It's like a tennis match. I'm trying to follow this thing.

Actually, what happened now is that United Airlines has, in fact, raised its prices, ticket prices by $10. So, they have a fuel surcharge of 30 bucks now. And I anticipate seeing more of this over the summer.

We're going to talk about the markets here quickly. Yesterday, a mixed bag for the markets. Nasdaq continued to rise a little bit. Some stocks on the move yesterday, very interesting, because of the terrorism alert. A bunch of little terrorist stocks, they are stocks that fight terrorism or have products that fight terrorism. Mace International, Magill (ph), Ipix (ph) and such were up sharply yesterday.

And one quick last note, Anderson. This morning, U.S. Energy Secretary Spencer Abraham in Moscow saying that additional oil supplies from Mexico, Nigeria and Russia, as well as Saudi Arabia, should be coming on stream. And that's why futures are up sharply this morning.

COOPER: All right, interesting news now in the papers.

SERWER: That's right.

COOPER: Andy Serwer, thanks very much -- Soledad.

O'BRIEN: Jack's got the question of the day.

Hello.

CAFFERTY: How are you doing?

"The New York Times" has a story this morning. A 53-year-old guy is suing the estate of Dr. Atkins and the company for $28,000. Jody Goran (ph) says that after following the Atkins diet for two years, his cholesterol level shot up, clogged his arteries and required a procedure to reopen them. A representative for Atkins Nutritionals, the company, told the "Times" they stand by the science of their diet.

So, we thought we'd ask the penetrating query this morning: Should you be able to sue your diet? And here's what we're getting in response.

Nick from Oxford, Mississippi, writes: "If the Atkins diet is followed, cholesterol should go down. Mine dropped over 30 points and my weight fell by 60 pounds. The Atkins diet isn't just eating cheeseburgers and avoiding bread. The lawsuit is frivolous, aren't they all, because Atkins amateurs who don't do the diet right are no different than the people who spill coffee in their own laps."

Wezul in Bowling Green, Kentucky. Why do I think that's not your name, Wezul? But it's all right. He writes this: "Why not? It's America. I should be able to sue my cat for giving me allergies."

And Tom in Delaware writes this on a different topic. "'American Idol' is a television program. It is not news. Get over it, Anderson."

COOPER: Me? Me? Wait a minute.

SERWER: That was directed at you, Anderson, apparently.

O'BRIEN: That was so directed at you, Anderson.

COOPER: Wow!

SERWER: Yes.

COOPER: Hey, you know, I watched it. What can I say?

CAFFERTY: I guess a lot of people did. I missed it -- again. Damn! O'BRIEN: You have another change, next season.

COOPER: Yes.

CAFFERTY: I have to wait a whole...

COOPER: You stopped watching after Latoya got off.

SERWER: La who?

CAFFERTY: Latoya Jackson? Was she on that?

SERWER: I knew he was going to say that.

CAFFERTY: Did she have her snake?

O'BRIEN: Oh! Oh!

CAFFERTY: Latoya and her snake.

O'BRIEN: Oh!

(CROSSTALK)

O'BRIEN: Moving on clearly and quickly. Still to come this morning, Kobe Bryant is preparing for a long day in which he'll be in court and also on the court. He could also find out today when his sexual assault trial is going to begin. That's ahead on AMERICAN MORNING. Stay with us.

(COMMERCIAL BREAK)

(WEATHER BREAK)

COOPER: Still to come this morning, seven people believed to be part of al Qaeda are said to be armed and dangerous. We'll have the latest on the terror threat coming up straight ahead. Stay with us on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Still to come this morning, we're going to soon know what the future will hold for beleaguered University of Colorado football Coach Gary Barnett. A look at that is ahead on AMERICAN MORNING.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired May 27, 2004 - 07:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOLEDAD O'BRIEN, CNN ANCHOR: New terror tactics. New terror recruits. How deep have al Qaeda operatives penetrated into U.S. communities?
Midwestern towns watching the water, hoping flood damage can be held where it is, while in the Caribbean, flood damage is catastrophic.

And the moment fans were waiting for. The songs are over, the reign of the next "American Idol" has begun, on this AMERICAN MORNING.

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

O'BRIEN: Good morning, welcome everybody.

Bill Hemmer, as he mentioned about 5,000 times yesterday, has the day off today and tomorrow. But Anderson Cooper is filling in for him.

We are thrilled to have you, Anderson.

ANDERSON COOPER, CNN ANCHOR: I am thrilled to be here.

O'BRIEN: Thank you very much. Let's start with some of the stories that are making headlines this morning.

COOPER: That's right. The attorney general says that intelligence shows that al Qaeda has plans to, quote; hit the U.S. hard in the next few months.

We're going to talk a lot about the warnings coming from the administration and the response.

James Kallstrom, the senior terrorism adviser to the New York's governor is with us. We'll also talk to Washington's chief of police, Charles Ramsey.

O'BRIEN: Also this morning, Senator John Kerry making national security the focus of his campaign for the next 11 days or so.

We're going to talk to -- the senator's ideas with former Secretary of State Madeleine Albright, find out if she thinks his plan is really all that different from the president's.

COOPER: Also, college tuition skyrocketing, no doubt about it, but there is a way to pay for your kid's education.

David Bach and "90-Second Tips" coming up a little bit later with that.

O'BRIEN: And Jack Cafferty is with us this morning.

JACK CAFFERTY, CNN ANCHOR: Need to be talking to David. I got that education problem going on in my own house. Got to get his advice on how to do that.

COOPER: Jack -- and I know you had a late night watching "AMERICAN IDOL" last night. I know you're very excited about that, too.

CAFFERTY: What -- are you on drugs?

We will journey to the land of the frivolous lawsuit. If you spill a cup of hot coffee in your lap and burn your "situation," then you should go to where you bought the coffee and blame it on them.

If you smoke cigarettes and get lung cancer, of course that's the tobacco company's fault, and there's an even more bizarre example of this that we're going to take a look at in just a few moments, if we can work it in between the replays of "American Idol." We're going to try.

O'BRIEN: We're going to see if we can squeeze it in this morning.

All right, Jack, thanks.

We begin this morning with the terrorist threat against the United States.

A new FBI task force being created to deal specifically with the perceived threat posed to American targets over the next few months.

The nation's top law enforcement officials, including Attorney General John Ashcroft and FBI Director Robert Mueller held a Washington news conference yesterday.

They said intelligence does not point to a specific attack plan. But Ashcroft spoke in stark terms about the challenge being posed by Osama bin Laden's operatives.

(BEGIN VIDEO CLIP)

JOHN ASHCROFT, ATTORNEY GENERAL: Credible intelligence from multiple sources indicates that al Qaeda plans to attempt an attack on the United States in the next few months. This disturbing intelligence indicates al Qaeda's specific intention to hit the United States hard.

(END VIDEO CLIP)

O'BRIEN: Officials are seeking the public's help in locating seven people who are said to be associated with al Qaeda. Six of the seven pictures have been previously released.

Ashcroft said all seven pose a clear and present danger and should be considered armed and dangerous.

Well joining us this morning to put all of this into context is Jim Kallstrom; he is the senior counterterrorism adviser to New York governor George Pataki. He is also a former assistant director of the FBI. He is in Wilmington, Delaware this morning.

Nice to see you, sir. Thanks for being with us.

JAMES KALLSTROM, COUNTERTERRORISM ADVISER TO N.Y. GOV. PATAKI: Good morning, Soledad.

O'BRIEN: The release of these pictures. How successful, generally, is a strategy like this? Is there an expectation that people will see the pictures, call up and turn in those seven people?

KALLSTROM: I think so; I think that's probably the best chance to get those pictures out as wide as you can.

You never know who is going to see those. You never know of the thousands of tips that come in which ones will actually be the right one, so I think that's a smart thing to do.

O'BRIEN: Two of the people seen there are among the 22 most wanted terrorists. The other five; are they terrorists, are they people of interest? Give me a sense of who the other five are.

KALLSTROM: No, I think they're people that absolutely support, you know, the fanatic radicals, the homicidal maniacs that are trying to kill us in large number, or else they wouldn't be up on that screen you're showing, Soledad.

O'BRIEN: Well, let's talk a little bit about the risks. We heard in the press conference yesterday that the focus this summer is potentially looking at plans to disrupt the elections.

Of course, many people are looking, especially when you're talking about here in New York, which is where your focus is now, the convention.

How concerned are you that that could be a reality? That in fact the terrorists are focusing on the conventions, to pull off something?

KALLSTROM: Well, you know, I think the first thing is we need to be focused on the fact that the terrorists are probably here, we've been naive to think they're not. That they can come and go probably not as easy as they could prior to 9/11, but they still can.

Those events are very symbolic -- on the other hand they're very safe. The events themselves are very safe. But the timing of those events give the terrorists opportunity from a timing standpoint to have more symbolism to their events wherever they may be.

O'BRIEN: These pictures obviously released on television, they're also on the FBI's Web site, FBI.gov, but I would imagine that actually where they need to be is in the heart of the Muslim community where many of these folks will probably be living, in those kinds of communities. How do you do that?

KALLSTROM: Well, there's no question we need the cooperation of all Americans and everyone here in this country whatever status they're in.

We had a press conference, Soledad, two days ago with the governor of New York, the governor of Vermont and the FBI director talking about a new information sharing regime with state and local police, which is I think critically important to protecting this country.

The idea of having police on the street, police that know the neighborhoods, patrol our highways, have better information, have information on indications and warnings of what terrorists are, how they operate, how they surveil, their modus operandi, and at the same time have access to the myriad of data bases in Washington so that if we come upon people through normal police work we're not going to let some terrorists through our grasp.

O'BRIEN: Jim Kallstrom joining us this morning. Nice to see you. Thanks for being with us.

KALLSTROM: Thank you, Soledad.

O'BRIEN: Anderson.

COOPER: Well, today, John Kerry will begin laying out his positions on national security and foreign policy. The Democratic presidential candidate will devote the next 11 days to getting out his message.

(BEGIN VIDEO CLIP)

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: Our young men and women are dying in another country, in several other countries, and the threat of terror is very real, and I think I can wage a more effective war on terror than George Bush is. I think we can do a better job of building America's safety and security.

(END VIDEO CLIP)

COOPER: The candidate is in Seattle today. He'll talk about building stronger relations with U.S. allies.

Earlier this morning I spoke with former Secretary of State Madeleine Albright. I started by asking her what she thinks Senator Kerry can do to improve the international ties that President Bush cannot.

(BEGIN VIDEOTAPE)

MADELEINE ALBRIGHT, FORMER SECRETARY OF STATE: Well, I think that Senator Kerry has a record of working with the -- understanding foreign relations, having the confidence of a lot of foreign leaders.

And I think that what's happened is that President Bush has squandered the credibility of the United States, and we really need a new leader in order to try to regain the position that we had in the world.

COOPER: Kerry seems to have made a political calculation of sort of standing back, not being in the forefront, talking about Iraq, allowing the president to sort of remain in the harsh spotlight on this.

Even in these next several days when John Kerry is going to be focusing on national security issues and foreign policy, he's not really going to be talking primarily about Iraq. Is that a wise strategy?

ALBRIGHT: Well, I think he's doing a very smart thing, which is basically to explain an overall national security strategy and explain that, in fact, America's stronger with alliances because they are force multipliers, they don't weaken us, they strengthen us.

He is talking about the necessity of really having a military force that is properly equipped and trained, and he is discussing he importance of not being dependent on Middle East oil and talking about Iraq.

So, I think he's putting the Iraq mess into an overall context and I think that is very important for the American people.

COOPER: But as the president's position has moved, some would argue closer to what Kerry was arguing a while back, though Republicans might disagree with that -- does John Kerry need to continue to show or to show how his policy is different than George Bush's -- and -- I mean is his policy different?

ALBRIGHT: Well, I think that what's different is that Senator Kerry suggested internationalizing this force about 600 days ago and if President Bush had followed some of the advice of Senator Kerry we might not be in this disastrous free fall, and what Senator Kerry is doing is saying that the Iraq issue and fighting terrorism needs to be viewed in a larger context while making clear that we have to change course while making also clear that we have to end what's going on in Iraq in a peaceful way and try to get security there.

COOPER: Some liberal Democrats are calling for a pull out deadline. One group is even going to be running ads on this. Is a pullout deadline something that John Kerry should consider?

ALBRIGHT: Well, I speak for myself here. Because I think that sometimes deadlines create more problems because they give the enemy a date to work against.

What needs to happen is to have certain activities, benchmarks, and the turning over of Iraq to the Iraqi people is what is essential here and providing security in the speech that President Bush gave he did talk about the importance of security, but I don't think he outlined fully enough how we get that kind of security and security there is what is needed in order to move to an election process and truly turning sovereignty over to the Iraqis.

COOPER: How confident are you that the United Nations will be able to, in a timely manner, come up with some form of government or transitional government that works?

ALBRIGHT: Well, I think the U.N. is a key aspect of this and what is unfortunate is that we spent so much time pulling down the reputation of the U.N. when in fact we should be supporting it because it is a way to get the situation in Iraq internationalized and to have some greater legitimacy for whatever government interim or transitional is set up in Iraq, so I think we need to support the U.N. and I hope very much that Secretary Powell is working very hard on trying to get a resolution in the United Nations that will provide that kind of structure and allow the internationalization of the Iraqi issue.

(END VIDEOTAPE)

COOPER: That was former Secretary of State Madeleine Albright -- Soledad.

O'BRIEN: Reports from Haiti and the Dominican Republic say 1,000 people are dead from storms and flooding on the Caribbean island of Hispaniola. Severe rain over the weekend led to floods that wiped out entire villages. At least 1,000 more people are still missing.

The Red Cross and other international agencies are bringing food and drinking water to survivors, and U.S. Marines are aiding in relief efforts there.

Turning now to the Midwest, where the governor of Illinois has issued a disaster declaration for flooded communities, but already the Des Plaines River is beginning to recede and residents are hoping that some expected good weather will help them.

Keith Oppenheim is live for us this morning in Gurnee, Illinois. Nice to see you, Keith. Good morning.

KEITH OPPENHEIM, CNN CORRESPONDENT: Good morning to you, Soledad. Things are actually looking better here, although at first it's not going to look like it at all. I'll give you the good news and the bad news.

The bad is that so far here in Gurnee, about 40 homes and 25 businesses damaged.

I'll give you a quick tour, if you look over here you'll see that there is a gazebo that's well underwater and if you look in this direction you'll see some of the businesses that I'm talking about. The Dairy Queen and insurance center that is still well surrounded by water.

We'll take you to another live camera perspective of the Gurnee Community Church, which has a sign that says "We've Got Peace Like A River." They're taking it in stride, but around that church it's pretty much a lake.

Yesterday, the governor of Illinois declared parts of two counties in northern Illinois state disaster areas, so the good news is that the state is trying to free up money for recovery and also may apply for federal aid.

We'll take you back live and you can see that there are roads now, which are looking dry, and in comparison to yesterday, it's really an improvement because the water is starting to pull back.

Now back by this insurance center that I'll point down here to the concrete on the wall -- and this is a water mark which indicates how high the water was yesterday, so that's an indication that things are really improving quite a bit.

In fact, by Saturday we're expecting that this water will be gone, or at least that's the prediction and the hope.

Can see the good work that the volunteers did behind us with all that sandbagging that was done. In Des Plaines, which is downstream from here, Soledad, they still have problems.

The predictions are that its not going to be nearly as bad as they thought it would be, but the cresting of that river, the high point, should be by sometime tomorrow at nine feet, four feet above flood stage, but not the six feet that they thought it would be.

So, you know, bad news is all relative. Back to you.

O'BRIEN: Exactly. And some much needed good news you're reporting for us this morning. Keith Oppenheim for us. Thanks. Appreciate it.

(WEATHER REPORT)

O'BRIEN: Well, it is 15 minutes past the hour, it's time to...

COOPER: It's flying by -- time is flying by.

O'BRIEN: You know what, Anderson? Because you're here. That's why.

Time to take a look at some of the other stories that are making headlines today. Heidi Collins sitting in for us. Hello, good morning again.

HEIDI COLLINS, CNN ANCHOR: Good morning to the both of you guys. Anderson, welcome. And good morning to you, everybody.

Want to get to the headlines now right away today.

The British government expected to announce today it will be sending more troops to Iraq. The Defense Ministry spokesman tells CNN British Defense Secretary Geoff Hoon will make the announcement in the House of Commons this afternoon. The deployment comes in response to the needs of commanders on the ground, according to the spokesman. British officials confirm there are roughly 8,000 troops stationed in Iraq right now.

British police now have a terror suspect in custody after acting on a U.S. extradition request. British police won't confirm it but sources say Egyptian-born cleric Abu Hamza al Masri will be in court today. His British nationality was revoked on charges he supports terrorism. Al Masri has one eye and steel hook for a right hand from fighting in Afghanistan.

In Eagle, Colorado, we could see a trial date set today in the Kobe Bryant case as the NBA star heads back to court. Attorneys for Bryant want an expert witness from the O.J. Simpson case to testify but prosecutors are expected to argue against that move. Bryant is facing one charge of sexual assault. He says the sex was consensual. We will of course head live to Eagle in our next hour.

In basketball now the Detroit Pistons now ahead of the Indiana Pacers after taking Game Three of the Eastern Conference Finals. Rasheed Wallace and Richard Hamilton with 20 points each lead Detroit to an 85-78 victory in the seven game series. The Pistons stay at home for Game Four tomorrow night.

And in matters of the heart, they always like to do these stories, matters of the heart, a new study shows women over the age of 40 are more likely than older men to ask for a divorce.

The AARP study found that older women seem more aware of problems in their marriages, while 26 percent of men said they never saw it coming. The study also shows most older divorcees move on to other serious relationships and stay sexually active.

O'BRIEN: Guys never see it coming. Why? I had no idea.

COOPER: Yikes.

O'BRIEN: All right Heidi, thanks.

COOPER: Time for the Cafferty File and the "Question of the Day" from Jack who always sees it coming -- Jack.

CAFFERTY: Little guy bashing going on here.

O'BRIEN: Sorry. Sorry. We're doing some chick bonding. Go ahead.

CAFFERTY: Nation's courts don't have enough lawsuits. They need this. "The New York Times" reporting this morning -- a man is suing his diet. Well, sort of. 53-year-old Jody Gorran is suing the estate of Dr. Atkins and the Atkins Company for $28,000.

He said that after following the Atkins Diet for two years his cholesterol levels went up, clogging his arteries and requiring a procedure to open them. Let's see -- the Atkins diet includes things like bacon and eggs and cheese and hamburgers and... A representative for Atkins Nutritionals told the "Times" they stand by the science of their diet. This is apparently the first lawsuit involving the controversial low carb diet, but it probably won't be the last, especially if the guy wins, although some legal experts say he doesn't have much of a chance.

Here's the question: should you be able to sue your diet? AM@cnn.com.

O'BRIEN: How about for not losing weight on it? That would be a good lawsuit.

CAFFERTY: You think?

O'BRIEN: Yes. I've been on this two weeks, I haven't lost a pound.

CAFFERTY: I don't understand any of this stuff. You make a choice to do something; unless you're mentally deranged in some way, your life -- it's a free country.

If it doesn't work out -- yes -- buy a ticket, take a chance. Ride the Ferris wheel at your own risk. You know. And if it doesn't work out it's nobody's fault. It's just -- it doesn't work out.

O'BRIEN: I hear you.

COOPER: See, Jack's a little grumpy because Diana DeGarmo didn't win last night on "American Idol" and I know he was really hoping -- he was dialing in that number all night long; that's why he was a little tired...

O'BRIEN: On his cell phone.

(LAUGHTER)

Which he doesn't have.

COOPER: Well I don't need to tell you all because I've talked about it all morning, the country has a new American Idol. Fantasia Barrino was announced as the winner of the Fox TV show last night.

The 19-year-old single mom from North Carolina beat Jack's favorite, Diana DeGarmo.

(BEGIN VIDEO CLIP)

RYAN SEACREST, "AMERICAN IDOL": And the winner of "American Idol" 2004 is Fantasia Barrino.

(END VIDEO CLIP)

COOPER: It was -- she rocked last night. Check out the scene in Fantasia's hometown of High Point, North Carolina. In a stadium.

Look at that -- a stadium filled with people. Fans went wild. The singer got possibly the ultimate compliment, acerbic British judge Simon Cowell declared her the best "American Idol" contestant yet. I think he even shed a little bit of a tear.

Barrino wins a lucrative record contact as well.

O'BRIEN: Good for her.

COOPER: Absolutely. She was great. And you know what? She broke a heel on her shoe and for the entire time she continued to sing with one heel.

O'BRIEN: Oh my God. Every woman...

COOPER: Is that not an "American Idol"?

O'BRIEN: She can do it all. Fantasia. I'm so proud of you, girl.

COOPER: She was going good, though.

O'BRIEN: All right. Well, you know, as you can see here, we had a "Jeopardy" champion with us.

COOPER: Oh, I don't want to brag, but I appreciate you bringing it up.

O'BRIEN: Congratulations on that.

COOPER: Have you seen my new business card? Anderson, "Jeopardy Champion."

O'BRIEN: We like it. So -- guess what? I'm going to put you on the spot and do the national Geography Bee as well. OK, so, here.

COOPER: OK.

O'BRIEN: Answer cards. It's sort of an envelope, really. But -- right on the other side there. Here. Right there. Your magic marker. This is a story.

Geography champ was crowned yesterday in Washington. We're going to play the winning question and we're going to give you an opportunity to see if you can beat the young teenager who got it right.

COOPER: If it's obscure countries I know it -- all right.

O'BRIEN: Here we go. Hang on, here we go.

(BEGIN VIDEO CLIP)

ALEX TREBEK, HOST, NATIONAL GEOGRAPHY BEE: Peshawar, a city in the northwest frontier province of Pakistan. Has had strategic importance for centuries because of its location near what historic pass? Peshawar, in the northwest part of Pakistan. Important strategically because its close to what historic pass? (END VIDEO CLIP)

COOPER: Come on! Come on -- the Khyber Pass.

O'BRIEN: You're going to get all snitty. Let's see. You've got to hold it like this.

COOPER: Khyber Pass. That was my answer. If I'm wrong, I'm dead.

O'BRIEN: Unfortunately we can't read your sloppy handwriting.

COOPER: It says Khyber. I was so disgusted it would -- with the ease of the question I barely scrawled it out.

O'BRIEN: Well let's see exactly if you're right.

COOPER: If I'm wrong, I'm leaving.

O'BRIEN: Won't you be embarrassed.

COOPER: All right.

O'BRIEN: Here's Alex with the answer.

(BEGIN VIDEO CLIP)

TREBEK: The correct response is the Khyber Pass and that means that Andrew (UNINTELLIGIBLE) congratulations young man.

(END VIDEO CLIP)

COOPER: I rule. Thank you. Thank you.

O'BRIEN: We worship you. We worship you. Anderson you get to come back tomorrow and collect your award.

COOPER: I beat a 14-year-old.

O'BRIEN: Fourteen-year-old Andrew Wotanick (ph) of Oakland Pass (ph) in Kansas was the real winner. He took home $25,000 college scholarship. He's actually chatting with Daryn Kagan in a little bit.

COOPER: I'll take him on.

O'BRIEN: Congratulations if you were able to do what a 14-year- old...

COOPER: Middle aged Celebrity Jeopardy champion, so it's kind of like a couple of notches down. Kind of a dumbed down version.

Still to come this morning, could this weekend's big event on the Washington Mall be a target for terrorists?

O'BRIEN: Also this morning Wal-Mart is looking for a piece of the action in Chicago, but many people actually don't want them on their turf.

COOPER: And amid rising gas prices this vehicle gets over 2,400 miles to the gallon. Stay with us on AMERICAN MORNING.

(COMMERCIAL BREAK)

COOPER: Well it took some muscle but Wal-Mart is moving into another big city. Here with that Andy Serwer who is "Minding Your Business."? Good morning, Andy.

ANDY SERWER, "FORTUNE" MAGAZINE: Good morning Mr. Khyber. That's what I'm calling you from now on.

COOPER: So Wal-Mart in Chicago?

SERWER: Yes, that's what happened. The City Council voted yesterday 32-15; it wasn't even close, to let Wal-Mart into the Windy City.

On the west side, it was a partial victory, because they did shut them down, not letting them open a store on the south side of Chicago. No store for Leroy Brown, I guess.

Lot of controversy, of course, about opening up Wal-Marts, but they got this one in Chicago. Now only two big city's left -- New York and Detroit are the only large metropolitan areas without Wal- Mart. That's correct.

And you want to talk about the markets?

COOPER: Yes, let's do that.

SERWER: Yesterday, a bit of a mixed bag yet again. We've been doing this over and over. And this is after Tuesday's big run up. We didn't get any follow through, as they like to say on Wall Street.

You see the Nasdaq is up nicely you guys. Text stocks actually been doing pretty well this year. Companies like eBay have been on fire and the futures are up stronger this morning. One quick note, Wal-Mart hired a pollster before the vote to connect people who are for the stores directly to the aldermen to lobby.

COOPER: Wow.

SERWER: And a lot of people a little bit unhappy with that. But they got the job done.

O'BRIEN: And they got the dough to do it.

SERWER: Yes they do.

O'BRIEN: That worked. All right, Andy, thanks.

Still to come this morning Washington, D.C. takes action against the threat of an al Qaeda attack and entertainer Bill Cosby not apologetic. In fact, he's defiant in pushing his controversial position. We'll talk about that just ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Good morning, welcome back everybody. Just about half past the hour on this AMERICAN MORNING.

Anderson Cooper is filling in for Bill Hemmer who has the next two days off.

Some of the headlines to start with this morning.

Terror alert levels are staying where they are for now, but the level of anxiety way up. This morning, we talk about law enforcement's response to the warnings from the attorney general and Washington's -- rather with Washington's police chief, Charles Ramsey. And there he is right there. We're going to chat with him in one moment.

COOPER: Also, last week, Bill Cosby put himself at the center of a controversy for some comments he made about lower-income African- Americans. Yesterday, he had a chance to elaborate on those comments, maybe let some of the air out of the story. We're going to take a look at what he did instead.

O'BRIEN: Also this morning, with the price of college tuition skyrocketing, saving for your child's education often seem like one step forward and two steps back. In just a few minutes, our personal money coach, David Bach, will tell you how to get ahead of the problem.

COOPER: Well, the nation's top law enforcement officials maintain there is no specific or credible terrorist threat against any target or even in the U.S. no specific threat. One of the high- profile events mentioned as a possible target is this Saturday's dedication of the National World War II Memorial on the Mall in Washington. City officials say more than 140,000 people, many of them elderly, are expected to attend the event.

An unprecedented security operation is being organized. It includes special support and response teams, plus some 1,000 law enforcement officers. Chemical and biological sensors already in place on the Mall will be supplemented with radiological detection equipment.

Joining us now from Washington is the city's police chief, Charles Ramsey.

Chief, thanks for being on the program this morning.

CHIEF CHARLES RAMSEY, WASHINGTON, D.C. POLICE: Thank you.

COOPER: Have your preparations changed in any way after yesterday's announcement by the FBI and Justice Department?

RAMSEY: No. Actually, we've been planning this event for quite some time. The U.S. Park Police is actually the lead agency. My department just acts in support. But there are a lot of agencies working together. I wasn't aware the news conference was going to take place, but the information presented was not new to those of us in law enforcement.

COOPER: So, when they put forward photos like they did yesterday, those seven photos of people and say be on the lookout, is that something that filters down to your department? I mean, do you suddenly get those photos and carry them around? Or is it not that specific?

RAMSEY: No, we got the photographs late yesterday. In fact, we're printing a bulletin up now that we can distribute to all of our members and make sure that they are in our database.

COOPER: I understand the D.C. police operate on levels from 1 to 5, and that you're at level 1 right now, which is actually the lowest level. Does that mean you are sort of not all that concerned about an imminent attack?

RAMSEY: Actually, we just recently changed to more closely mirror the federal color code system, so we're actually at what we consider to be yellow. But we're always at an elevated level here in Washington, and we have been since 9/11. So, there's not a drastic change in what we do when things like this come up.

COOPER: Obviously another big celebration coming forward is July 4. Are preparations for that any different from this weekend?

RAMSEY: Actually, the preparations for that are fairly similar to what you'll see this weekend. We'll have more people actually for the Fourth of July. They get close to a million people down on the Mall for that particular event. So, we'll be working very closely with the Park Police again for that event, and we don't anticipate any problems. And as you mentioned earlier, we have not received any specific information, but, obviously, we have to be very alert.

COOPER: Chief of the D.C. police, Charles Ramsey, thanks for being on AMERICAN MORNING.

RAMSEY: Thank you.

O'BRIEN: Well, comedian Bill Cosby's remarks about low-income African-Americans failing themselves caused instant outrage when he made them at Howard University last week. But as CNN's Tom Foreman reports, Mr. Cosby is not backing down.

(BEGIN VIDEOTAPE)

TOM FOREMAN, CNN CORRESPONDENT (voice over): Cosby came to public television to explain why he is speaking out against problems in the black community.

BILL COSBY, COMEDIAN: You can't just blame white people for this, man. You can't. Whether I'm right wing or left, some people are not parenting. FOREMAN: Back in Washington, D.C., the switchboard is still lighting up at radio station WOL every time they air the speech Cosby made, which started this controversy.

COSBY: Lower economic and lower middle economic people are not holding up to their end in this deal.

FOREMAN: The comedian said those words during a fund-raiser for Howard University and went on to attack African-Americans who waste money, who use improper English, who are single parents.

COSBY: No longer is a person embarrassed because they are pregnant without a husband. No longer is a boy considered an embarrassment if he tries to run away from being the father.

FOREMAN: Cosby's comments were spurred when a 12-year-old Washington girl was injured by a stray bullet from a gun fight. The police chief criticized the culture of violence. Cosby went after the families of young men who wind up being arrested.

COSBY: Where were you when he was 2? Where were you when he was 12? And how come you don't know he had a pistol?

FOREMAN (on camera): Cosby has angered some African-Americans, despite many years of fund-raising and activism in the black community.

(voice over): But if they are waiting for an apology...

COSBY: For God's sake, turn around and let's have some meetings and say, brother, let me explain to you.

FOREMAN: ... he is making it clear they can keep waiting.

Tom Foreman, CNN, Washington.

O'BRIEN: Bill Cosby's comments have been the subject of editorials from coast to coast.

COOPER: And still to come on AMERICAN MORNING, things have already changed at Abu Ghraib prison, and the Pentagon has a bigger move still to come. We'll talk about that.

O'BRIEN: Also, the airlines are taking action on the high fuel prices. It's going to affect the bottom line of your ticket price. We'll explain.

COOPER: Oh, that doesn't sound good.

And paying for your kid's college. There are several different ways. We're going to get some advice just ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: When it comes to saving for a child's college education, the earlier the better is a good rule of thumb. Still, with tuition outpacing inflation, it's hard for parents to avoid the sticker shock.

Well, our personal finance contributor, David Bach, joins us this morning to ease some of the pain in your pocketbook. In this week's "90-Second Tip" segment, he's got advice to help parents save and pay. David Bach is the author of best-selling book, "The Automatic Millionaire."

Nice to see you. Good morning.

DAVID BACH, CNN PERSONAL FINANCE CONTRIBUTOR: Good to see you. Good morning.

O'BRIEN: Let's get right to it. How early -- some people begin saving for their child's college education literally the minute the child is born.

BACH: Absolutely. And that is the easiest thing to do. I always tell young parents, look, a latte a day, if you cut that out and put that money away in a college savings account, you can have enough money for college.

O'BRIEN: Really?

BACH: Easily, if you start when they are born. The unfortunate thing is most parents wait until their kids are 10, 11 or 12, in many cases when they're taking the PSAT test. Too late. Start when they're young, and it's easy. Ten dollars a day will get you there.

O'BRIEN: There are some savings options as well.

BACH: Yes.

O'BRIEN: Let's talk about a couple. The first is the 529 Plan. Walk for me very specifically, what is it, and how does it work?

BACH: All right, there are two types. There is prepaid and then there is also the 529 Plan. The college 529 Plan is great. This is the 401(k) plan of college savings. You can put money into these plans up to $250,000 away. This money grows tax-free. It's in the parents' names, so the parents control the money. Very important. The key thing is that the money comes out, provided you take it out for educational costs, tax-free.

So, you've got tax-free growth, tax-free distribution, parent controls the money, and you can also have other people fund it. So, you can have your grandparents put money into the account. Great, great tool.

O'BRIEN: How about the college savings plan?

BACH: The college savings plan is what we call a prepaid plan. That's where you're getting a state plan. You're basically locking in the cost of college. This protects you against inflation. A lot of people like that. It's very conservative.

What's the disadvantage? When you put money in these prepaid plans, when you go to get what we call financial aid, which most students do, they look at how much money you've put in those plans, and they hit you dollar for dollar on them. So, it affects your ability to get financial aid. So, that is one thing parents really need to know about before they do it.

O'BRIEN: All right. What about your own IRA? Can you take money out of your IRA to fund your kid's tuition without being penalized?

BACH: This is a great question, and most people don't realize it's yes, you can. You can fund a regular IRA account or a Roth IRA. And if you take the money out for educational costs, you'll pay taxes on it, but you won't pay that 10 percent penalty. So, if you're under the age of 59 and a half, know that you can access that money without penalty, but you will pay taxes.

O'BRIEN: There is a way that grandparents, you cay, can help here. And this is really the tricky part, because, of course, what colleges look at is your parents' financial statements. And so, if you are sort of middle-class or upper middle-class...

BACH: Right.

O'BRIEN: ... essentially, you're in big trouble because you get no money.

BACH: There are a lot of grandparents out there, especially right now watching CNN in the morning, that have a lot of money. You can put money, again, into a 529 Plan for your grandchildren. You can put it in your name. So that doesn't affect your child -- your grandchild's ability to get financial aid.

And also, what people should know is that we hear about how you can put $11,000 a year away estate tax-free. With the 529 Plan, you can actually put up to a lump sum per person of $55,000. So, what we're seeing couples do is you can actually put as much as $110,000 away in a 529 Plan for your grandchild.

O'BRIEN: Better that the grandparents fund that.

BACH: Fantastic. And we're seeing a lot of grandparents do this, because they have estate-planning issues. They want to help the grandchildren. And it's really a wonderful tool to consider.

O'BRIEN: How much money at the end of the day are you aiming for? If you want to send your kid to college, I mean, what's the number? Is it $250,000?

BACH: A whole lot of money. Yes, what they're saying right now is if you have a child who is 1, about $200,000 to $250,000 is what you're going to need in 18 years.

O'BRIEN: That's just tuition.

BACH: Well, it's tuition, it's room, it's board, it's everything. But I know parents right now that will say, David, that's ridiculous. I'm spending $40,000 a year for the private education, so we're already there.

O'BRIEN: Right.

BACH: Bt that's the national average that we hear about, and that's for a private school.

O'BRIEN: Those numbers are so scary, aren't they?

BACH: They really are, because college...

O'BRIEN: Look at me, I'm going to have four kids.

BACH: I know. What's scary about it is that the cost of college is going up about three times the rate of inflation. So, when you look at the cost of everything, probably one of the most expensive things we'll have 10, 15 or 20 years from now, aside from health care, is education costs.

O'BRIEN: All right, well, people really have got to start thinking about it. David Bach, as always, nice to see you.

BACH: Soledad, good to see you.

O'BRIEN: Thanks for stopping by. Appreciate it. David, of course, is the host of his own nationally-syndicated radio show. It airs Saturday afternoons on Sirius Satellite Radio. And, of course, he joins us each week right here on AMERICAN MORNING with tips on how to improve your financial life -- Anderson.

COOPER: Soledad, still to come, Senator John Kerry seek to end days of speculation over when he'll accept the Democratic presidential nomination. That news ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

COOPER: And a busy morning already. It is 46 minutes past the hour. Time for a look at some of today's news with Heidi Collins -- Heidi.

HEIDI COLLINS, CNN ANCHOR: Thank, Anderson.

Citing a credible threat, the Justice Department is warning Americans to be on alert this summer for possible terror attacks. Attorney General John Ashcroft and FBI Director Robert Mueller revealed the identities of seven terror suspects yesterday during a news conference, who they said were linked to al Qaeda.

Ashcroft said they all pose a clear and present danger to Americans and should be considered armed and dangerous. We're going to have a live report from Washington for more details on this just ahead.

There is also word this morning the U.S. military will be out of Iraq's Abu Ghraib prison by August, turning over control to Iraqi security forces. That's according to "The Washington Post." The newspaper says the detainees in the jail will not likely be held there, but instead will be transferred to another facility.

In Monday's primetime speech, President Bush mentioned the Baghdad-area prison should be torn down.

Convicted Oklahoma bombing conspirator Terry Nichols could now face the death penalty after a jury found him guilty on state murder charges in the 1995 attack. The decision was handed down yesterday. Nichols is already serving life in prison after an earlier conviction on federal charges. The terror bombing killed 168 people in 1995.

Presidential hopeful John Kerry says he plans to accept his party's nomination at this summer's Democratic convention in Boston. In a written statement yesterday, Kerry put to rest speculation he would delay the acceptance in order to improve his financial footing. Once nominated, campaign finance legislation limits a candidate's spending to $75 million.

And a handful of Indiana High School students are pushing the boundaries of fuel efficiency. Their car design earned first place in a state-wide fuel-efficient car contest. It took them two years to make, but now the car goes 30 miles an hour. It gets about 2,400 miles to the gallon. So, maybe it doesn't move so fast, but it's great gas mileage.

Back over to you, guys.

COOPER: Thanks very much, Heidi.

United Airlines is feeling the pressure from high fuel prices. With that and our market preview, Andy Serwer is "Minding Your Business."

Hi, Andy.

ANDY SERWER, "FORTUNE" MAGAZINE: Good morning again, Anderson.

You know, these higher fuel prices have been wreaking havoc on the airline business, and they've been trying to raise prices, and then they cut prices. It's a game of chicken back and forth to see who is actually going to do it. It's like a tennis match. I'm trying to follow this thing.

Actually, what happened now is that United Airlines has, in fact, raised its prices, ticket prices by $10. So, they have a fuel surcharge of 30 bucks now. And I anticipate seeing more of this over the summer.

We're going to talk about the markets here quickly. Yesterday, a mixed bag for the markets. Nasdaq continued to rise a little bit. Some stocks on the move yesterday, very interesting, because of the terrorism alert. A bunch of little terrorist stocks, they are stocks that fight terrorism or have products that fight terrorism. Mace International, Magill (ph), Ipix (ph) and such were up sharply yesterday.

And one quick last note, Anderson. This morning, U.S. Energy Secretary Spencer Abraham in Moscow saying that additional oil supplies from Mexico, Nigeria and Russia, as well as Saudi Arabia, should be coming on stream. And that's why futures are up sharply this morning.

COOPER: All right, interesting news now in the papers.

SERWER: That's right.

COOPER: Andy Serwer, thanks very much -- Soledad.

O'BRIEN: Jack's got the question of the day.

Hello.

CAFFERTY: How are you doing?

"The New York Times" has a story this morning. A 53-year-old guy is suing the estate of Dr. Atkins and the company for $28,000. Jody Goran (ph) says that after following the Atkins diet for two years, his cholesterol level shot up, clogged his arteries and required a procedure to reopen them. A representative for Atkins Nutritionals, the company, told the "Times" they stand by the science of their diet.

So, we thought we'd ask the penetrating query this morning: Should you be able to sue your diet? And here's what we're getting in response.

Nick from Oxford, Mississippi, writes: "If the Atkins diet is followed, cholesterol should go down. Mine dropped over 30 points and my weight fell by 60 pounds. The Atkins diet isn't just eating cheeseburgers and avoiding bread. The lawsuit is frivolous, aren't they all, because Atkins amateurs who don't do the diet right are no different than the people who spill coffee in their own laps."

Wezul in Bowling Green, Kentucky. Why do I think that's not your name, Wezul? But it's all right. He writes this: "Why not? It's America. I should be able to sue my cat for giving me allergies."

And Tom in Delaware writes this on a different topic. "'American Idol' is a television program. It is not news. Get over it, Anderson."

COOPER: Me? Me? Wait a minute.

SERWER: That was directed at you, Anderson, apparently.

O'BRIEN: That was so directed at you, Anderson.

COOPER: Wow!

SERWER: Yes.

COOPER: Hey, you know, I watched it. What can I say?

CAFFERTY: I guess a lot of people did. I missed it -- again. Damn! O'BRIEN: You have another change, next season.

COOPER: Yes.

CAFFERTY: I have to wait a whole...

COOPER: You stopped watching after Latoya got off.

SERWER: La who?

CAFFERTY: Latoya Jackson? Was she on that?

SERWER: I knew he was going to say that.

CAFFERTY: Did she have her snake?

O'BRIEN: Oh! Oh!

CAFFERTY: Latoya and her snake.

O'BRIEN: Oh!

(CROSSTALK)

O'BRIEN: Moving on clearly and quickly. Still to come this morning, Kobe Bryant is preparing for a long day in which he'll be in court and also on the court. He could also find out today when his sexual assault trial is going to begin. That's ahead on AMERICAN MORNING. Stay with us.

(COMMERCIAL BREAK)

(WEATHER BREAK)

COOPER: Still to come this morning, seven people believed to be part of al Qaeda are said to be armed and dangerous. We'll have the latest on the terror threat coming up straight ahead. Stay with us on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Still to come this morning, we're going to soon know what the future will hold for beleaguered University of Colorado football Coach Gary Barnett. A look at that is ahead on AMERICAN MORNING.

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