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CNN Live Today

Kerry-Edwards Have First Photo Op

Aired July 07, 2004 - 10:00   ET

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

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


DARYN KAGAN, CNN ANCHOR: Good morning from CNN global headquarters in Atlanta. I'm Daryn Kagan.
Now in the news. Teammates take the field. The Democratic ticket made its first public appearance about an hour and a half ago, just outside of Pittsburgh. John Kerry and John Edwards are now headed for Cleveland, a later date in Ohio. And they end the day in Clearwater, Florida. A live report from the campaign trail is just minutes away.

President Bush makes his own campaign appearance today in Raleigh, North Carolina. We will hear from him in the next hour as well. The president will meet his judicial nominees from the Tar Heel State. And you can expect him to say something about Senator John Edwards' part in blocking one of those nominees.

Overseas, Iraqi officials announce a new security law, as a street battle raged a few miles away. The law allows the government to declare martial law, set curfews and detain suspected insurgents. At least two people were killed and 12 wounded, as Iraqi forces battled insurgents in central Baghdad.

A senior official in Yemen tells CNN that six people linked to al Qaeda have been charged with planning the 2000 attack on USS Cole. Seventeen American sailors were killed in the blast. Five of the suspects were in court today, but refused to enter pleas. The sixth who is believed to be a close associate of Osama bin Laden is now in U.S. custody.

Keeping you informed, CNN the most trusted name in news.

We're going to begin with the Democrats newly formed presidential ticket, pollsters wasting no time in measuring public reaction to the naming of John Edwards. According to a CNN/"USA Today"/Gallup poll conducted yesterday, 64 percent of registered voters said that Edwards was an excellent or good choice. That's compared to 55 percent for the year of the 2000 selection of Dick Cheney. Fifty-three percent for that year's choice of Joe Lieberman and 44 percent for the 1988 pick of Dan Quayle.

As we mentioned, Kerry and Edwards appeared together before the cameras for the first time since their political pairing was announced.

Kelly Wallace is in Fox Chapel, Pennsylvania that is the site of the Heinz-Kerry family farm and the Democratic team begins its quest. Kelly, good morning.

KELLY WALLACE, CNN NATIONAL CORRESPONDENT: Good morning, Daryn. Well, it is very quiet here at the moment. Team Kerry-Edwards left here a short time ago, on its way to the first of a six-state, four- day barnstorming tour, beginning in the very important battleground state of Ohio.

But earlier this morning, it was really the beginning of a meticulously planned rollout for this Democratic ticket. The first joint photo op, featuring John Kerry and John Edwards. We saw Senator Edwards there with his wife Elizabeth, and his three children: his daughter Kate and those two little ones that seem to be getting everybody's attention, Emma Claire and Jack. John Kerry there with his wife, his two daughters and two of his three stepsons.

And we have the first comment from John Edwards since he was tapped to become John Kerry's running mate and he. And he put forward that very optimistic, up beat message that made him popular during the primaries. And ultimately is one of the reasons, Kerry adviser says, is why the senator decided to choose him.

(BEGIN VIDEO CLIP)

SEN. JOHN EDWARDS, (D-NC), VICE PRESIDENTIAL CANDIDATE: He shares the values of the vision that I believe in. You know, I grew up in a small town in North Carolina. This is the kind of man we grew up looking up to, respecting, somebody who believed in faith and family and responsibility. And having everybody get a chance to do what they're capable of doing, not just a few. That's what this is about for us.

And for so many Americans, this campaign is about the future and it's about restoring hope. People are desperate to believe, again, that tomorrow will be better than today. That's what John Kerry represents for the American people. He represents hope.

(END VIDEO CLIP)

WALLACE: And the senators refused to take questions, saying they would do so later. And there will be questions. Perhaps one of the toughest questions going to John Kerry, as Republicans raise a lot of questions, saying that John Kerry questioned John Edwards' readiness and experience for the presidency back during the primaries.

Right now, though, it is all campaigning all of the time. The intensity definitely increasing for the Democratic ticket. Seven new ads featuring Kerry and Edwards in battleground states right now. And Daryn, the wives and their husbands will be together over the next four days, but then they'll ultimately split. And one Kerry adviser saying you will have four people out barnstorming all across the country over the next four months.

KAGAN: A lot of work left to do.

I have a totally nonpolitical question, but just something that struck me, as I was looking at the men standing side-by-side. I was surprised to see John Edwards that significantly shorter than John Kerry. How tall are these men really in person?

WALLACE: It's true. John Kerry is very tall. I have interviewed him when sort of towering over me because I'm not that tall myself. So they are definitely a difference in size.

There was another observation, Daryn, too. Which is John Edwards is known to be sort of this really dynamic campaigner. And again, that's one of the things that has made him so popular. He seemed a little muted during this photo op. You get the sense he's trying to perhaps feel his way. Some saying, of course, he might not want to be overshadowing or outshining the Democratic presidential candidate. So that seemed to be something going on at this photo op as well.

KAGAN: All right. We're getting our first images of the ticket together.

Kelly Wallace in Pennsylvania, thank you for that.

Well, President Bush just happens to be going to John Edwards' home state today, and don't be surprised if he mentions John Kerry's running mate by that.

Dana Bash is at the White House talking about that.

Coincidence or not, Dana, that the president is heading to North Carolina?

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Well, Daryn, the White House insists it is a coincidence. And in fact, the president is building this stop in North Carolina, the first stop of the day, around a fund raiser that is planned and has been planned for the Republican National Committee.

Having said that, the president is going to do some business that is very much related to John Edwards. There you see the president. He left just a short while ago, with his White House counsel Alberta Gonzalez. The issue at hand is questioning the fact that John Edwards, the Democratic senator from North Carolina, has been blocking three of Mr. Bush's judicial nominees. Because Senator Edwards says that they are out of the mainstream.

Now, the president will have some private meetings with those nominees, and attempt to try to highlight an issue that is important to conservatives in Mr. Bush's party. And that is the makeup of the courts. The timing of this also allows President Bush and his team to try to play up, what they have been saying since we first got the news that Senator Edwards was in fact the pick, the fact that they think he's too liberal. But in fact, we will hear from President Bush at a very political event, Daryn, as you said, at a fund raiser in just a couple of hours.

KAGAN: I want to ask you a behind the scenes question in a second. But first, on this issue of John Edwards blocking these judicial nominees. Isn't this just the political cycle we see taking place? Didn't Jesse Helms block a lot of nominations that Bill Clinton tried to get through when he was in nomination?

BASH: Absolutely. And it's a great question, because certainly, this is nothing unique to either Senator Edwards or President Bush, or these two parties. This has become an age-old issue. As you mentioned, Senator Helms blocked a number of President Clinton's nominees. And this happens, not just in North Carolina, but a lot of states. And it really has become a major issue, as I mentioned, among some of the base supporters. Not just from the president's party, but in the Democratic Party. Because the makeup of the courts, they see for the social issues, are so very important.

KAGAN: And then now behind the scenes. We heard yesterday the president said Dick Cheney had called John Edwards to welcome him to the race. But behind the scenes, what are the White House officials really saying about this selection?

BASH: Well, behind the scenes, Daryn, they are certainly saying that they understand that he is somebody who is charming and can be charming on the campaign trail.

But they do question the geography of the pick, if you will. The fact that Senator Edwards is from North Carolina, a southern state. And if you want to look at how North Carolina has gone in the past, it's gone very Republican. President Bush won there by 13 percentage points. But right now, we're looking at the latest poll taken in North Carolina shows it quite tight. Forty-seven percent for President Bush and Senator Kerry getting 42 percent, almost within the margin of error, that is way too close for a state like North Carolina, for Republicans.

That's why Democrats are hoping that having the home state senator on their ticket will help them. But Bush aides, Daryn, do point out that Senator Edwards is not running for re-election in North Carolina. And perhaps he might not have won there, if he had run. So they question whether or not Senator Edwards will actually help Senator Kerry in the national election in his home state -- Daryn.

KAGAN: Dana Bash at the White House. Dana, thank you for that.

John Kerry and his wife Teresa Heinz-Kerry will answer your questions and take your calls on CNN's "LARRY KING LIVE." That is tomorrow, 9:00 Eastern.

(GUNFIRE)

KAGAN: Take a look and listen at this. This has been the scene much this morning in central Baghdad, where Iraqi police and coalition forces have battled insurgents. At least two Iraqi have been killed and seven injured in the fighting. But it's not clear if the victims were civilians, police officers or insurgents.

That fighting has erupted, as Iraqi leaders announce a new security law with new powers to fight the insurgents.

Joining us from the capital, CNN's Baghdad bureau chief Jane Arraf. Jane, hello.

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Hi, Daryn. The senior U.S. military official tells us that that fighting in central Baghdad, off a major residential street, went on for four hours. Apparently, insurgents; what he calls a gang, opened fire on Iraqi National Guard. Now, this is a new force that is increasingly doing patrols. And apparently, as they were going through the neighborhood, they came under fire from small arms, and according to witnesses, rocket- propelled grenades.

Some of that fire was directed in the direction of an Iraqi police station. And at that point, they called for reinforcements. The reinforcements: U.S. soldiers in armored vehicles and in helicopters. The military official tells us, though they did not fire a shot. He said the Iraqi security forces were able to handle it by themselves.

Now, as you mentioned, two people dead. And up to a dozen or more injured. And it is still unclear whether these were security people, or whether they were bystanders caught in the crossfire.

The fighting started just before the announcement of a new security plan. Now, this is a series of security measures announced by the prime minister, backed by the Human Rights and Justice minister to crack down on insurgents. It would allow the prime minister to do things, like authorize house-to-house searches, impose curfews, possibly ban public gatherings. But they say there is a series of checks and balances. He would need the approval of the president, two deputies and most of the cabinet -- Daryn.

KAGAN: Meanwhile, the prime minister, I understand his attack has been -- his house has been under attack as well?

ARRAF: Well, sadly it's kind of a common occurrence here. There were four mortars fired in the direction of a neighborhood that houses not only his House, but also the headquarters of his political party. He put out a statement later saying that a woman and her child were hurt. And this was an indication of how they had to stop these people, who he describes as "foreign fighters," from terrorizing Iraqis.

Now at the same time, in central Baghdad, the Iraqi police diffused a car bomb today. An indication that perhaps they are making headway in trying to diffuse, literally and figuratively, this ongoing violence, including the series of car bombs. But the rocket attacks and mortar attacks continue, particularly against targets like the prime minister -- Daryn.

KAGAN: Jane Arraf in Baghdad.

Back here in the U.S. a Senate Intelligence report, expected later this week, should take some parting shots at outgoing chief -- CIA chief George Tenet and some other decision makers in the agency.

David Ensor explains why. (BEGIN VIDEOTAPE)

DAVID ENSOR, CNN CORRESPONDENT (voice-over): The report will criticize outgoing director of Central Intelligence George Tenet. According to knowledgeable sources for relying too much on the work of this man, an American CIA weapons expert, who last year showed CNN gas centrifuge parts dug up from an Iraqi scientist's garden. Knowledgeable sources say the report says the man, who CIA officials asked CNN not to identify, was biased. That he was convinced that aluminum tubes, imported by Iraq, were for uranium enrichment, as opposed to conventional rockets as the Iraqis had claimed.

JOSEPH CIRINCIONE, CARNEGIE ENDOWMENT: The CIA seems to have picked an analyst who had the point of view that these tubes were for a nuclear weapons program.

ENSOR: Even the CIA's own former Iraq weapons chief is now a critic.

DAVID KAY, FMR. CIA IRAQ WEAPONS INSPECTOR: I was shocked by the low level of technical analysis that was behind the claim. And the more I dug into it, the more I found more people who I really did respect their technical expertise in this area, had either not been consulted or their views had not been fully taken into account.

ENSOR: George Tenet and other CIA officials continue to insist it is not clear what the aluminum tubes were really for.

GEORGE TENET, DIRECTOR, CIA: We have additional data to collect and more sources to question.

ENSOR: Another fault found by the Senate Intelligence Committee reports, sources say is that the CIA interviewed some family members of Iraqi scientists, who said there were no longer any weapons of mass destruction programs. But that the CIA never told the president.

CIRINCIONE: It's perfectly understandable that the CIA wouldn't believe family members of scientists who told them there were no programs. But they should have included it in their report. They should have revealed all of the evidence, not just the evidence that fit their position.

ENSOR: CIA officials respond that it was only a handful of scientists' relatives who were simply repeating the party line, from Iraq's leader Saddam Hussein.

Asked about the Senate report, the president continues to assert Washington was right to be suspicious of Iraq.

GEORGE W. BUSH, PRESIDENT, UNITED STATES OF AMERICA: Saddam Hussein had the intent. He had the capability. And the world is better off without Saddam Hussein in power.

ENSOR (on camera): But on Thursday, the day before the Senate report is scheduled to come out, George Tenet will be bidding farewell to his CIA staff. Having apparently decided that he'd rather face what are likely to be several scathing reports, on the intelligence due out this summer, as a private citizen.

David Ensor, CNN, Washington.

(END VIDEOTAPE)

KAGAN: A U.S. Marine captured by insurgents in Iraq and then possibly freed? Was he asked to betray his country? We'll take you to his hometown in Utah for some answers on that.

Also, a major drug company lowers the price of prescriptions for the uninsured. And the doctor will be in to tell us whether that is a good deal.

And later, the true adventure of two Americans who risked everything to solve one of the last mysteries of World War II. Shadow Divers coming up on CNN LIVE TODAY.

(COMMERCIAL BREAK)

KAGAN: Showing you live pictures now from Arizona. Firefighters have been unable to push back a blaze. It is sweeping toward a $200 million mountainside observatory. The so-called Gibson Fire, about 150 miles east of Phoenix, has closed in to within a half mile of the Mount Graham international observatory. Actually, I think this is a live picture of the Willow Fire.

You know, there is a number of wildfires in Arizona at this time. It is said to be one of the most advanced telescopes on earth, the one that is on top of Mount Graham. So a lot of challenges for firefighters across the Grand Canyon State today.

A major drug company takes steps to help the 43 million uninsured Americans. Dr. Sanjay Gupta will tell you which company is trying to make sure everyone can get the prescription drugs that they need.

And you say you want to buy a home. But Gerri Willis says there might be a thing to get around if you can't afford the payment.

But have you got to be careful. Right, Gerri?

GERRI WILLIS, CNNFN PERSONAL FINANCE EDITOR: You got to be careful. That's right, Daryn. If you're using creative financing to afford the house of your dreams, listen up when CNN LIVE TODAY continues.

(COMMERCIAL BREAK)

KAGAN: Let's keep our numbers right, as we talk about buying a home. These days, even modest homes can cost a bundle but there is a way to purchase an expensive home and stay within your budget. It's called the Interest Only Mortgage.

It is the subject of today's "Top Five Tips." Our personal finance editor, Gerri Willis of CNN Financial News here to explain the fine print and why you have to be careful with these things.

Good morning, Ger.

WILLIS: Hey, Daryn. Good to see you. Well, first tip, No. 1, get the details. An Interest Only Mortgage is exactly as it sounds, you pay only interest for a period of time say, five, 10, even 15 years. For people who are cash strapped, can't afford their dream House, looking for any way to do it this is often the way to get there. Check out this comparison. If you were buying a home with a plain vanilla mortgage, you'd be paying 1886 a month for that $300,000 loan. Now, look at the mortgage payment monthly on an Interest Only ARM. It's far lower. Just a little over $1,100 a month. So, Daryn, you can see why they're so popular.

KAGAN: But now -- now to get to some of the buts. And there is this one term called "compression." Why do you need to be careful with that?

WILLIS: Well, what I mean by the "term compression" is this idea. Let's say you have that period of time, maybe five, 10 years where you're paying interest only, no principal. Well, then at the end of that period, Daryn, you owe the entire principal. So instead of being able to pay it off over 30 years, now you've got to pay it off over 25 or even 20 years. That means your monthly payments are going to go much higher.

KAGAN: Now, speaking of getting higher. When most of us buy a home, we start dreaming of how this house is going to appreciation, but it can go the other direction. And that can be a problem with an interest only loan?

WILLIS: Particularly now. Daryn, as you know, home prices you know have gone through the roof in many markets. We could be seeing a period here, where home prices flat line or even go south in a handful of markets. Now, what if that happens to you and you have an interest only mortgage? You could end up owing more than the house is worth, which is not a good thing.

The other negative here, you delay building up equity in your house. And a third thing for people to keep in mind here, quickly, if interest rates go higher, boy, you could be in for a world of hurt. Your payments could go up pretty dramatically. Check this out assuming 8 percent rate. The example we cited before, up to 2200 bucks a month. KAGAN: Wow.

Now, if you do do it, one of the things people think about is saving money. But here is the trick. You actually have to save the money that you intend to save.

(LAUGHTER)

WILLIS: Right. You know, it sounds like a great promise, right?

KAGAN: Yes!

WILLIS: I'm going to set all this money aside and earn a lot, and invest it very intelligently. But a lot of people don't make it happen. You've really got to think it through, plan. Be proactive if you're going to do this. Because at the end of the day, you're going to spend more time thinking about this money, than if you were actually just investing it in your house.

KAGAN: Now, what about downsizing your dream? I don't think a lot of people want to hear that when they're looking for their dream home.

WILLIS: Yes. Right. Well, you know, it may be the smart thing to do and here is why. Ultimately if you do buy that slightly smaller house, you can build up some equity in your home immediately. And then build what you want, exactly what you want with a home equity line of credit, or a home equity loan. And that way you don't feel like boy, I'm behind the 8 ball if anything goes wrong. Interest rates, home prices. You just want to make sure you know what you're getting into before you sign on that dotted line -- Daryn.

KAGAN: Isn't that the truth? When you dive into that world of home ownership.

Gerri Willis, thank you. We will see you later in the week.

WILLIS: Thank you.

KAGAN: So you have a decorated war hero at the top of the ticket. Does John Edwards' military record then really matter? What experience he brings to the table from the Senate? That is up ahead.

Plus, diving deep pays off for a pair of adventurers, but they paid a very high price. They find an important piece of history off the New Jersey coast. We'll have their story "Shadow Divers." The author is my guest just ahead.

(COMMERCIAL BREAK)

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Aired July 7, 2004 - 10:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: Good morning from CNN global headquarters in Atlanta. I'm Daryn Kagan.
Now in the news. Teammates take the field. The Democratic ticket made its first public appearance about an hour and a half ago, just outside of Pittsburgh. John Kerry and John Edwards are now headed for Cleveland, a later date in Ohio. And they end the day in Clearwater, Florida. A live report from the campaign trail is just minutes away.

President Bush makes his own campaign appearance today in Raleigh, North Carolina. We will hear from him in the next hour as well. The president will meet his judicial nominees from the Tar Heel State. And you can expect him to say something about Senator John Edwards' part in blocking one of those nominees.

Overseas, Iraqi officials announce a new security law, as a street battle raged a few miles away. The law allows the government to declare martial law, set curfews and detain suspected insurgents. At least two people were killed and 12 wounded, as Iraqi forces battled insurgents in central Baghdad.

A senior official in Yemen tells CNN that six people linked to al Qaeda have been charged with planning the 2000 attack on USS Cole. Seventeen American sailors were killed in the blast. Five of the suspects were in court today, but refused to enter pleas. The sixth who is believed to be a close associate of Osama bin Laden is now in U.S. custody.

Keeping you informed, CNN the most trusted name in news.

We're going to begin with the Democrats newly formed presidential ticket, pollsters wasting no time in measuring public reaction to the naming of John Edwards. According to a CNN/"USA Today"/Gallup poll conducted yesterday, 64 percent of registered voters said that Edwards was an excellent or good choice. That's compared to 55 percent for the year of the 2000 selection of Dick Cheney. Fifty-three percent for that year's choice of Joe Lieberman and 44 percent for the 1988 pick of Dan Quayle.

As we mentioned, Kerry and Edwards appeared together before the cameras for the first time since their political pairing was announced.

Kelly Wallace is in Fox Chapel, Pennsylvania that is the site of the Heinz-Kerry family farm and the Democratic team begins its quest. Kelly, good morning.

KELLY WALLACE, CNN NATIONAL CORRESPONDENT: Good morning, Daryn. Well, it is very quiet here at the moment. Team Kerry-Edwards left here a short time ago, on its way to the first of a six-state, four- day barnstorming tour, beginning in the very important battleground state of Ohio.

But earlier this morning, it was really the beginning of a meticulously planned rollout for this Democratic ticket. The first joint photo op, featuring John Kerry and John Edwards. We saw Senator Edwards there with his wife Elizabeth, and his three children: his daughter Kate and those two little ones that seem to be getting everybody's attention, Emma Claire and Jack. John Kerry there with his wife, his two daughters and two of his three stepsons.

And we have the first comment from John Edwards since he was tapped to become John Kerry's running mate and he. And he put forward that very optimistic, up beat message that made him popular during the primaries. And ultimately is one of the reasons, Kerry adviser says, is why the senator decided to choose him.

(BEGIN VIDEO CLIP)

SEN. JOHN EDWARDS, (D-NC), VICE PRESIDENTIAL CANDIDATE: He shares the values of the vision that I believe in. You know, I grew up in a small town in North Carolina. This is the kind of man we grew up looking up to, respecting, somebody who believed in faith and family and responsibility. And having everybody get a chance to do what they're capable of doing, not just a few. That's what this is about for us.

And for so many Americans, this campaign is about the future and it's about restoring hope. People are desperate to believe, again, that tomorrow will be better than today. That's what John Kerry represents for the American people. He represents hope.

(END VIDEO CLIP)

WALLACE: And the senators refused to take questions, saying they would do so later. And there will be questions. Perhaps one of the toughest questions going to John Kerry, as Republicans raise a lot of questions, saying that John Kerry questioned John Edwards' readiness and experience for the presidency back during the primaries.

Right now, though, it is all campaigning all of the time. The intensity definitely increasing for the Democratic ticket. Seven new ads featuring Kerry and Edwards in battleground states right now. And Daryn, the wives and their husbands will be together over the next four days, but then they'll ultimately split. And one Kerry adviser saying you will have four people out barnstorming all across the country over the next four months.

KAGAN: A lot of work left to do.

I have a totally nonpolitical question, but just something that struck me, as I was looking at the men standing side-by-side. I was surprised to see John Edwards that significantly shorter than John Kerry. How tall are these men really in person?

WALLACE: It's true. John Kerry is very tall. I have interviewed him when sort of towering over me because I'm not that tall myself. So they are definitely a difference in size.

There was another observation, Daryn, too. Which is John Edwards is known to be sort of this really dynamic campaigner. And again, that's one of the things that has made him so popular. He seemed a little muted during this photo op. You get the sense he's trying to perhaps feel his way. Some saying, of course, he might not want to be overshadowing or outshining the Democratic presidential candidate. So that seemed to be something going on at this photo op as well.

KAGAN: All right. We're getting our first images of the ticket together.

Kelly Wallace in Pennsylvania, thank you for that.

Well, President Bush just happens to be going to John Edwards' home state today, and don't be surprised if he mentions John Kerry's running mate by that.

Dana Bash is at the White House talking about that.

Coincidence or not, Dana, that the president is heading to North Carolina?

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Well, Daryn, the White House insists it is a coincidence. And in fact, the president is building this stop in North Carolina, the first stop of the day, around a fund raiser that is planned and has been planned for the Republican National Committee.

Having said that, the president is going to do some business that is very much related to John Edwards. There you see the president. He left just a short while ago, with his White House counsel Alberta Gonzalez. The issue at hand is questioning the fact that John Edwards, the Democratic senator from North Carolina, has been blocking three of Mr. Bush's judicial nominees. Because Senator Edwards says that they are out of the mainstream.

Now, the president will have some private meetings with those nominees, and attempt to try to highlight an issue that is important to conservatives in Mr. Bush's party. And that is the makeup of the courts. The timing of this also allows President Bush and his team to try to play up, what they have been saying since we first got the news that Senator Edwards was in fact the pick, the fact that they think he's too liberal. But in fact, we will hear from President Bush at a very political event, Daryn, as you said, at a fund raiser in just a couple of hours.

KAGAN: I want to ask you a behind the scenes question in a second. But first, on this issue of John Edwards blocking these judicial nominees. Isn't this just the political cycle we see taking place? Didn't Jesse Helms block a lot of nominations that Bill Clinton tried to get through when he was in nomination?

BASH: Absolutely. And it's a great question, because certainly, this is nothing unique to either Senator Edwards or President Bush, or these two parties. This has become an age-old issue. As you mentioned, Senator Helms blocked a number of President Clinton's nominees. And this happens, not just in North Carolina, but a lot of states. And it really has become a major issue, as I mentioned, among some of the base supporters. Not just from the president's party, but in the Democratic Party. Because the makeup of the courts, they see for the social issues, are so very important.

KAGAN: And then now behind the scenes. We heard yesterday the president said Dick Cheney had called John Edwards to welcome him to the race. But behind the scenes, what are the White House officials really saying about this selection?

BASH: Well, behind the scenes, Daryn, they are certainly saying that they understand that he is somebody who is charming and can be charming on the campaign trail.

But they do question the geography of the pick, if you will. The fact that Senator Edwards is from North Carolina, a southern state. And if you want to look at how North Carolina has gone in the past, it's gone very Republican. President Bush won there by 13 percentage points. But right now, we're looking at the latest poll taken in North Carolina shows it quite tight. Forty-seven percent for President Bush and Senator Kerry getting 42 percent, almost within the margin of error, that is way too close for a state like North Carolina, for Republicans.

That's why Democrats are hoping that having the home state senator on their ticket will help them. But Bush aides, Daryn, do point out that Senator Edwards is not running for re-election in North Carolina. And perhaps he might not have won there, if he had run. So they question whether or not Senator Edwards will actually help Senator Kerry in the national election in his home state -- Daryn.

KAGAN: Dana Bash at the White House. Dana, thank you for that.

John Kerry and his wife Teresa Heinz-Kerry will answer your questions and take your calls on CNN's "LARRY KING LIVE." That is tomorrow, 9:00 Eastern.

(GUNFIRE)

KAGAN: Take a look and listen at this. This has been the scene much this morning in central Baghdad, where Iraqi police and coalition forces have battled insurgents. At least two Iraqi have been killed and seven injured in the fighting. But it's not clear if the victims were civilians, police officers or insurgents.

That fighting has erupted, as Iraqi leaders announce a new security law with new powers to fight the insurgents.

Joining us from the capital, CNN's Baghdad bureau chief Jane Arraf. Jane, hello.

JANE ARRAF, CNN BAGHDAD BUREAU CHIEF: Hi, Daryn. The senior U.S. military official tells us that that fighting in central Baghdad, off a major residential street, went on for four hours. Apparently, insurgents; what he calls a gang, opened fire on Iraqi National Guard. Now, this is a new force that is increasingly doing patrols. And apparently, as they were going through the neighborhood, they came under fire from small arms, and according to witnesses, rocket- propelled grenades.

Some of that fire was directed in the direction of an Iraqi police station. And at that point, they called for reinforcements. The reinforcements: U.S. soldiers in armored vehicles and in helicopters. The military official tells us, though they did not fire a shot. He said the Iraqi security forces were able to handle it by themselves.

Now, as you mentioned, two people dead. And up to a dozen or more injured. And it is still unclear whether these were security people, or whether they were bystanders caught in the crossfire.

The fighting started just before the announcement of a new security plan. Now, this is a series of security measures announced by the prime minister, backed by the Human Rights and Justice minister to crack down on insurgents. It would allow the prime minister to do things, like authorize house-to-house searches, impose curfews, possibly ban public gatherings. But they say there is a series of checks and balances. He would need the approval of the president, two deputies and most of the cabinet -- Daryn.

KAGAN: Meanwhile, the prime minister, I understand his attack has been -- his house has been under attack as well?

ARRAF: Well, sadly it's kind of a common occurrence here. There were four mortars fired in the direction of a neighborhood that houses not only his House, but also the headquarters of his political party. He put out a statement later saying that a woman and her child were hurt. And this was an indication of how they had to stop these people, who he describes as "foreign fighters," from terrorizing Iraqis.

Now at the same time, in central Baghdad, the Iraqi police diffused a car bomb today. An indication that perhaps they are making headway in trying to diffuse, literally and figuratively, this ongoing violence, including the series of car bombs. But the rocket attacks and mortar attacks continue, particularly against targets like the prime minister -- Daryn.

KAGAN: Jane Arraf in Baghdad.

Back here in the U.S. a Senate Intelligence report, expected later this week, should take some parting shots at outgoing chief -- CIA chief George Tenet and some other decision makers in the agency.

David Ensor explains why. (BEGIN VIDEOTAPE)

DAVID ENSOR, CNN CORRESPONDENT (voice-over): The report will criticize outgoing director of Central Intelligence George Tenet. According to knowledgeable sources for relying too much on the work of this man, an American CIA weapons expert, who last year showed CNN gas centrifuge parts dug up from an Iraqi scientist's garden. Knowledgeable sources say the report says the man, who CIA officials asked CNN not to identify, was biased. That he was convinced that aluminum tubes, imported by Iraq, were for uranium enrichment, as opposed to conventional rockets as the Iraqis had claimed.

JOSEPH CIRINCIONE, CARNEGIE ENDOWMENT: The CIA seems to have picked an analyst who had the point of view that these tubes were for a nuclear weapons program.

ENSOR: Even the CIA's own former Iraq weapons chief is now a critic.

DAVID KAY, FMR. CIA IRAQ WEAPONS INSPECTOR: I was shocked by the low level of technical analysis that was behind the claim. And the more I dug into it, the more I found more people who I really did respect their technical expertise in this area, had either not been consulted or their views had not been fully taken into account.

ENSOR: George Tenet and other CIA officials continue to insist it is not clear what the aluminum tubes were really for.

GEORGE TENET, DIRECTOR, CIA: We have additional data to collect and more sources to question.

ENSOR: Another fault found by the Senate Intelligence Committee reports, sources say is that the CIA interviewed some family members of Iraqi scientists, who said there were no longer any weapons of mass destruction programs. But that the CIA never told the president.

CIRINCIONE: It's perfectly understandable that the CIA wouldn't believe family members of scientists who told them there were no programs. But they should have included it in their report. They should have revealed all of the evidence, not just the evidence that fit their position.

ENSOR: CIA officials respond that it was only a handful of scientists' relatives who were simply repeating the party line, from Iraq's leader Saddam Hussein.

Asked about the Senate report, the president continues to assert Washington was right to be suspicious of Iraq.

GEORGE W. BUSH, PRESIDENT, UNITED STATES OF AMERICA: Saddam Hussein had the intent. He had the capability. And the world is better off without Saddam Hussein in power.

ENSOR (on camera): But on Thursday, the day before the Senate report is scheduled to come out, George Tenet will be bidding farewell to his CIA staff. Having apparently decided that he'd rather face what are likely to be several scathing reports, on the intelligence due out this summer, as a private citizen.

David Ensor, CNN, Washington.

(END VIDEOTAPE)

KAGAN: A U.S. Marine captured by insurgents in Iraq and then possibly freed? Was he asked to betray his country? We'll take you to his hometown in Utah for some answers on that.

Also, a major drug company lowers the price of prescriptions for the uninsured. And the doctor will be in to tell us whether that is a good deal.

And later, the true adventure of two Americans who risked everything to solve one of the last mysteries of World War II. Shadow Divers coming up on CNN LIVE TODAY.

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KAGAN: Showing you live pictures now from Arizona. Firefighters have been unable to push back a blaze. It is sweeping toward a $200 million mountainside observatory. The so-called Gibson Fire, about 150 miles east of Phoenix, has closed in to within a half mile of the Mount Graham international observatory. Actually, I think this is a live picture of the Willow Fire.

You know, there is a number of wildfires in Arizona at this time. It is said to be one of the most advanced telescopes on earth, the one that is on top of Mount Graham. So a lot of challenges for firefighters across the Grand Canyon State today.

A major drug company takes steps to help the 43 million uninsured Americans. Dr. Sanjay Gupta will tell you which company is trying to make sure everyone can get the prescription drugs that they need.

And you say you want to buy a home. But Gerri Willis says there might be a thing to get around if you can't afford the payment.

But have you got to be careful. Right, Gerri?

GERRI WILLIS, CNNFN PERSONAL FINANCE EDITOR: You got to be careful. That's right, Daryn. If you're using creative financing to afford the house of your dreams, listen up when CNN LIVE TODAY continues.

(COMMERCIAL BREAK)

KAGAN: Let's keep our numbers right, as we talk about buying a home. These days, even modest homes can cost a bundle but there is a way to purchase an expensive home and stay within your budget. It's called the Interest Only Mortgage.

It is the subject of today's "Top Five Tips." Our personal finance editor, Gerri Willis of CNN Financial News here to explain the fine print and why you have to be careful with these things.

Good morning, Ger.

WILLIS: Hey, Daryn. Good to see you. Well, first tip, No. 1, get the details. An Interest Only Mortgage is exactly as it sounds, you pay only interest for a period of time say, five, 10, even 15 years. For people who are cash strapped, can't afford their dream House, looking for any way to do it this is often the way to get there. Check out this comparison. If you were buying a home with a plain vanilla mortgage, you'd be paying 1886 a month for that $300,000 loan. Now, look at the mortgage payment monthly on an Interest Only ARM. It's far lower. Just a little over $1,100 a month. So, Daryn, you can see why they're so popular.

KAGAN: But now -- now to get to some of the buts. And there is this one term called "compression." Why do you need to be careful with that?

WILLIS: Well, what I mean by the "term compression" is this idea. Let's say you have that period of time, maybe five, 10 years where you're paying interest only, no principal. Well, then at the end of that period, Daryn, you owe the entire principal. So instead of being able to pay it off over 30 years, now you've got to pay it off over 25 or even 20 years. That means your monthly payments are going to go much higher.

KAGAN: Now, speaking of getting higher. When most of us buy a home, we start dreaming of how this house is going to appreciation, but it can go the other direction. And that can be a problem with an interest only loan?

WILLIS: Particularly now. Daryn, as you know, home prices you know have gone through the roof in many markets. We could be seeing a period here, where home prices flat line or even go south in a handful of markets. Now, what if that happens to you and you have an interest only mortgage? You could end up owing more than the house is worth, which is not a good thing.

The other negative here, you delay building up equity in your house. And a third thing for people to keep in mind here, quickly, if interest rates go higher, boy, you could be in for a world of hurt. Your payments could go up pretty dramatically. Check this out assuming 8 percent rate. The example we cited before, up to 2200 bucks a month. KAGAN: Wow.

Now, if you do do it, one of the things people think about is saving money. But here is the trick. You actually have to save the money that you intend to save.

(LAUGHTER)

WILLIS: Right. You know, it sounds like a great promise, right?

KAGAN: Yes!

WILLIS: I'm going to set all this money aside and earn a lot, and invest it very intelligently. But a lot of people don't make it happen. You've really got to think it through, plan. Be proactive if you're going to do this. Because at the end of the day, you're going to spend more time thinking about this money, than if you were actually just investing it in your house.

KAGAN: Now, what about downsizing your dream? I don't think a lot of people want to hear that when they're looking for their dream home.

WILLIS: Yes. Right. Well, you know, it may be the smart thing to do and here is why. Ultimately if you do buy that slightly smaller house, you can build up some equity in your home immediately. And then build what you want, exactly what you want with a home equity line of credit, or a home equity loan. And that way you don't feel like boy, I'm behind the 8 ball if anything goes wrong. Interest rates, home prices. You just want to make sure you know what you're getting into before you sign on that dotted line -- Daryn.

KAGAN: Isn't that the truth? When you dive into that world of home ownership.

Gerri Willis, thank you. We will see you later in the week.

WILLIS: Thank you.

KAGAN: So you have a decorated war hero at the top of the ticket. Does John Edwards' military record then really matter? What experience he brings to the table from the Senate? That is up ahead.

Plus, diving deep pays off for a pair of adventurers, but they paid a very high price. They find an important piece of history off the New Jersey coast. We'll have their story "Shadow Divers." The author is my guest just ahead.

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