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American Morning
Najaf Uprising; Interview with NYC Police Commissioner Ray Kelly; 'Live Rich Today'
Aired August 26, 2004 - 07:31 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.
BILL HEMMER, CNN ANCHOR: Welcome back, everyone. It's 7:31 here in New York. Heidi Collins is along with us today.
Good morning to you.
HEIDI COLLINS, CNN ANCHOR: Good morning.
HEMMER: We're watching this situation now in New York, a massive job ahead of them. It's starting this weekend, in fact. Keeping the city safe for the convention. Only days to go, security at unprecedented levels. We'll talk to New York Police Commissioner Ray Kelly about the vast resources now dedicated to this event. They say it's never been done this way before for a single event like this.
COLLINS: Sixty million dollars, yes.
Also, this is a big time of year for buying a new car. But no matter how good of a deal you get, you'll probably be paying bills for years to come. So, in just a few minutes we're going to hear from David Back about something else you need to shop for.
HEMMER: He's got some good advice, too.
First up at the bottom of the hour here, let's get back to Carol Costello at the CNN center and the headlines there.
Carol -- good morning.
CAROL COSTELLO, CNN ANCHOR: Good morning, Bill. Thank you.
Two Turkish companies reportedly began to pull their staff and equipment out of Iraq this morning. According to the Turkish news agency, the move is designed to spare the lives of two abducted workers. A group of Islamic militants issued a warning yesterday threatening to behead the men within 72 hours.
Here in the United States, a Florida man is being treated for severe burns this morning after setting himself and a U.S. Marine van on fire. Now, officials say the man set the blaze just minutes after the marines told him his son had been killed in Iraq. Police say they have not yet determined if charges will be filed.
In just a couple of hours, the Scott Peterson double-murder trial resumes in California. The prosecution is claiming the police wiretaps show Peterson lied to family and friends about the disappearance of his pregnant wife, Laci. The top investigator also admitted police originally believed more than one person may have been involved in her disappearance.
In Nevada this morning, a wildfire is threatening hundreds of homes, prompting officials to call for evacuations south of Reno. Several homes were destroyed after wind-fed flames spread overnight to nearly 3,000 acres. Helicopters and more than a dozen air tankers continue to battle the fast-moving fire. Official say a man shooting targets sparked the blaze.
Back to you -- Bill.
HEMMER: Carol, thanks for that.
We want to get to Iraq again. Powerful forces are headed for a showdown today in Najaf. Grand Ayatollah Ali Sistani, the most senior Shiite leader in Iraq, has arrived back in his home in Najaf. He's leading a march to the mosque at some point, possibly today, occupied by the forces of radical Shiite cleric leader, Muqtada al-Sadr.
Now, earlier, mortars were fired and on hundreds of demonstrators as they got ready to march in nearby Kufa (ph) to Najaf. Twenty-five are dead there. Snipers fired on demonstrators, too, as they marched.
A few minutes ago, I asked "The Washington Post" Baghdad bureau chief, Rajiv Chandrasekaran, about the situation ongoing today.
(BEGIN VIDEOTAPE)
HEMMER: What does Sistani want with this march in Najaf?
RAJIV CHANDRASEKARAN, "WASHINGTON POST": Well, it still remains unclear. I think what he clearly wants is a peaceful resolution to this crisis. He wants Muqtada al-Sadr and his followers to leave that shrine, but he also wants also U.S. troops to pull back from Najaf, one of the holiest for Shiite Muslims around the world.
So, I think he's trying a third-way solution, trying to use his legitimacy as one of the most influential Shiite clerics in the world, and using people power, literally tens of thousands of fellow Shiites, who are amassing with him on the way to Najaf, as a way to sort of pressure both sides here, as a way to force Muqtada al-Sadr to do something that he has thus far refused to do. And that is to vacate the holy shrine of Imam Ali and to force U.S. forces to cease offensive operations and to pull back and to essentially allow the clerical leadership a chance to regain control of the city.
HEMMER: In the past he's tried to broker cease-fires to varying degrees of success. What are the chances now the militia listens to Sistani?
CHANDRASEKARAN: Well, Sadr and Sistani have been rivals. Sadr represent a more activist, upstart, branch of the clergy. He's a younger, more rebellious man. And so, it's not at all certain that Sadr and his followers would listen.
But things have gotten to such a critical stage, and with this sort of pressure and with this number of people coming with Sistani, it certainly will increase the pressure on Sadr to come to some sort of a compromise agreement here.
It also could provide Sadr with a valuable face-saving solution. It would allow him to essentially hand over control of that shrine to a more prominent cleric and may even allow his followers to sort of meld away in this large crowd that is expected there later today.
HEMMER: Yes, and the large crowd earlier today in Kufa, when the mortar rounds were fired into that crowd countless deaths and injuries there, reported sniper fire along the roof in Kufa to nearby Najaf. The U.S. military is strongly denying any involvement in either of these events. How hard is it for the military to convince the Shiite population that they were not involved?
CHANDRASEKARAN: Well, you know, there's a whole gap here between truth and perception. And the perception on the ground, unfortunately, is that it was a U.S. military action, even though U.S. commanders strenuously deny it.
And as events in the past have shown us, really despite, you know, endless denials, there is a little that probably can be done to change those opinions.
I think now the real challenge for the U.S. military and for the Iraqi security forces is to allow this march, this group with Sistani, to come toward the city without a violent confrontation.
(END VIDEOTAPE)
HEMMER: Rajiv Chandrasekaran from "The Washington Post" a short time ago in Baghdad.
Now -- Heidi.
COLLINS: An extraordinary multi-agency security plan is under way in New York City now for next week's Republican National Convention. It is a show of force a U.S. city rarely has seen.
Now, the man in charge of overseeing part of the force assembled to provide security, New York City Police Commissioner Ray Kelly.
Commissioner Kelly, it's always nice to see you.
RAY KELLY, NYC POLICE COMMISSIONER: It's good to be with you.
COLLINS: You know, we're hearing reports, police intelligence reports actually, that anarchists could possibly show up at the RNC. How worried are you about that?
KELLY: Well, I think a lot of disparate groups are going to be arriving at the convention. We've planned for this. We've anticipated the so-called anarchists coming here. We believe the vast majority of demonstrators are going to be peaceful and want their opinions heard. But there are going to be some that are looking to be disruptive, and we're ready for that.
COLLINS: Yes, I mean, when people hear the word, "anarchists," I think they get a little alarmed. How big of a group are we talking about, possibly?
KELLY: It's difficult to say. Perhaps a couple hundred.
COLLINS: All right. Is this possibly going to be a distraction? I mean, there are going to be a whole lot going on. You can talk about maybe four different major categories, if you will. You're talking about guarding against terrorism. You're talking about possible anarchists, sporting events, the U.S. Open, Mets and Yankees. And then also protesters, peaceful protesters will be there. That's a lot of stuff. How do you feel about the resources that you're going to have available?
KELLY: I think we're in good shape. We've done a lot of planning. We've done a lot of training. I think we have sufficient resources to keep the city safe, to make it a peaceful event for the vast majority of people who are participating.
COLLINS: We also know there has been some information coming out about a particular group that had asked to hold their rally or their anti-Bush protest if you will, in Central Park. That has been denied. Talk to us about that. I mean, do you feel like that was a good decision by this state judge?
KELLY: I think it was a reasonable decision. Other groups are actually demonstrating in the park. This particular group is claiming to have 250,000 people, a quarter million in the park in the area they wanted to go just simply just couldn't work.
They're going to have a march. We're talking to that group now. We're working on the details. They'll have a march past Madison Square Garden on Sunday. They'll terminate at a location. Hopefully we'll be able to work in that location today.
COLLINS: So this is a possible new plan?
KELLY: Yes, this is a new plan that we're working on with the group. We believe that some people will go to Central Park. It's an open park. There are 200,000 people there normally on a Sunday. So, some of the so-called protesters will probably go to the park. If they're peaceful, if they obey the law, then, you know, everybody will get along. We'll have an adequate number of police officers there to make certain that the peace is maintained.
COLLINS: What are you most worried about? Again, there's a lot going on. A lot of money has been spent on security. A lot of people are going to be here, visitors and, again, as we say, protesters of whatever kind. What is your main concern (UNINTELLIGIBLE)?
KELLY: Well, obviously we have to be concerned about a terrorist event. That's our No. 1 job, to protect the city against some sort of terrorist attack. I think we're well-positioned to do that. We're working with our federal partners. There are a lot of agencies here that will be working. Obviously there will be demonstrators here. As I say, I think the vast majority will be peaceful. We have, you know, a lot of balls in the air, but I think we're well-positioned to take care of any contingency. COLLINS: We wish you the best of luck, and thanks so much for stopping by to tell us all about it.
KELLY: Thank you, Heidi. Good to be with you.
COLLINS: All right, Commissioner Ray Kelly.
Bill -- oh, pardon. AMERICAN MORNING, we want to let you know, will have live coverage next week from the Republican Convention right here in New York again. That will begin on Monday -- Bill.
HEMMER: It is going to be a big week in the city.
In a moment here on a much different topic, if you're in the market for a car, stick around. Some tips today on getting a loan that will not put you in debt for life.
And another "New You" checkup today, perhaps the toughest challenge of all: kicking the habit. Sanjay checks back in six months later with Kathryn Burkholder in a moment on AMERICAN MORNING.
(COMMERCIAL BREAK)
HEMMER: Cars may get us from point A to point B, but they can also get us to point D as well -- D as in debt.
David Bach is our personal finance contributor, author of "The Automatic Millionaire," in today's edition of "Live Rich Today." He looks at what to watch out for when getting a car loan.
David -- good morning to you.
DAVID BACH, CNN PERSONAL FINANCE CONTRIBUTOR: Good morning, Bill.
HEMMER: Welcome back here.
Two weeks ago we were sitting here talking about bad debt and good debt. And when it came to bad debt, at the top of that list was your car, your automobile.
BACH: That's right.
HEMMER: You need a car, right?
BACH: You have to buy a car. And most people can't afford to pay cash. But here's the key to the car. It's not just the price. Most people will spend days, sometimes weeks, shopping for a good car price, and then spend five minutes shopping for the actual loan itself. You want to spend time on the loan, because that's where you're actually paying. It's that interest rate. So, you want to shop for the interest rate and the loan on the car. That's how you get a good deal on debt.
HEMMER: Take us inside the numbers then, the best way to get your interest rate down. BACH: All right, knowledge is power. You've got to know your credit score. So, go to one of three credit bureaus, whether that's Equifax, Experien or TransUnion. Pull your credit score. Bring that credit score into the car dealership. If you have a score over 650, you've got a decent credit score. You should be able to get a rate right now of below 5 percent. If your score is over 750, the car companies will give you 0 percent financing. You can't beat 0 percent financing.
HEMMER: No, you can't. Where do you get the best car loan deal then after you have that information?
BACH: All right, in addition to the car dealers, you can also go online right now. One company I would look at is a company called PeopleFirst.com. It's owned by Capital One. They are the largest online lenders for cars. So, you can go online, in a matter of minutes, fill out an application and find out if they'll loan you money. Again, their interest rate right now shows below 3 percent. You can also go to eLoan.com, two great sources on the Web.
HEMMER: So then the length of the loan, you advice what?
BACH: Shorter is better, 48 months over 72 months, and here is why. Even though the monthly payment on a 72-month loan is lower, what you'll spend over the life of the loan on a 72-month loan is significantly higher. So, on a $20,000 car, for example, over 48 months you'll spend $23,436. Take that out over 72 months, it's $25,248. So you're spending a couple thousand dollars more over the life of that loan, a bad way to go.
HEMMER: If I am already locked into a high rate, is there any way out for me?
BACH: Absolutely. You can renegotiate. And earlier is better. One thing to consider doing, if you have equity in your home, is actually pulling out an equity loan. And the reason is, if you take that equity out of your house and you buy a car, you can now write off those interest payments. So, that's one opportunity.
The second opportunity is to simply go back to the car dealer and see if they'll refinance with you. In many cases, they will.
HEMMER: I have never heard anyone say that it's better to lease than it is to buy. But is there an exception when it comes to that decision?
BACH: There is an exception. One exception is if you can write it off. If you are somebody who has a business, and you can run your car through your business, and you're driving less than 10,000 miles a year, you can come out ahead in most cases with a lease.
HEMMER: Advice taken to heart. Thank you, David.
BACH: Thank you, Bill.
HEMMER: It's always good to see you here. David Bach, catch him every Thursday here on AMERICAN MORNING with tips on how to "Live Rich Today."
JACK CAFFERTY, CNN ANCHOR: I'm ready.
COLLINS: Jack's ready, he says. So, we're going to turn to him now for the "Question of the Day."
CAFFERTY: An anti-Republican umbrella group, United for Peace and Justice, was -- next week we're going to teach you how to buy a sink! And United for Peace and Justice was denied a permit to demonstrate on the great lawn of Central Park. They've been told they can protest near the Convention Center but not on the great lawn. The city has spent $18 million to fix the lawn. They don't want it destroyed again.
The activists are vowing they're going to go to the park anyway on Sunday. You heard the police commissioner saying he thinks we're prepared. I know Ray Kelly. I guarantee you they're prepared in this town for whatever happens. It's the best police force in the world. Yes, can we have an amen?
UNIDENTIFIED MALE: Amen!
UNIDENTIFIED MALE: Amen!
UNIDENTIFIED MALE: Amen!
CAFFERTY: There you go. Is it right to keep the protesters out of Central Park?
Shawn (ph) in Roanoke, Virginia, writes: "Trying to keep RNC protesters out of Central Park is typical of Republicans trying to stage-manage every aspect of the convention. Protests in Central Park are just as much a typical American activity as conventions and voting. If Republicans can't stand the heat, they should stay out of hell's kitchen."
Hell's kitchen is where the Madison Square Garden are is.
Wayne in Marlton, New Jersey: "Yes, keep the demonstrators out of the park. It took years to renovate the great lawn. I say let them in to Madison Square Garden. I don't know if Republicans meeting NYC citizens would prove anything, but it's bound to be entertaining."
Celia in Lawrence, Kansas: "If not there, where? Do you really want thousands of people blocking up the streets? No."
Tony in Roscoe, Illinois, this is good: "No, we need the presence of the protesters to prevent those Republicans from setting up logging and oil drilling operations in Central Park."
And Sandy in Chesterfield, South Carolina: "As long as the protesters are not violent, I see no reason why they should not be able to rally. And if they disguise themselves as muggers, the cops will never see them anyway." AM@cnn.com. It's going to be a great week next week. Andy and I are going to be at the Tick-Tock Diner (ph) down by Madison Square Garden.
ANDY SERWER, "FORTUNE" MAGAZINE: We'll be drinking some coffee.
CAFFERTY: Down there at the malt shop.
SERWER: Yes.
CAFFERTY: All right.
HEMMER: Bacon, eggs and cheese on toast while you're there.
Thank you, Jack.
You mentioned oil prices finally moving downward. Andy is here to explain all of that.
Dropping like a stone, are they?
SERWER: Yes, well, they're all over the place.
HEMMER: A bit overstatement.
SERWER: Well, yesterday they were dropping like a stone, down 1.74. Look, this is a year-to-date chart for the price of U.S. crude. You can see we've gone all the way up, and now we are sliding down sharply -- excuse me -- sliding sharply down. But that was yesterday, as I said, 1.74 down.
Now, this morning, Pernomo Usgentoro (ph), the head of OPEC, he is an Indonesian, he is jawboning the price of oil, trying to keep it down lower, but not succeeding.
This morning the price of crude is back up about 30 or 40 cents. Why? Conflicting reports coming out of Iraq, violence being inflicted upon pipelines down there. Look at the pictures we've got, sabotage near Basra. It's unclear though whether this was a natural break or whether it was sabotage. It's very difficult to get information.
But, as can you imagine, that is disrupting the flow of oil coming out of Iraq. They usually pump 1.8 million barrels a day. Now they're down to 1.2.
Yesterday the markets went up very nicely because of that drop in oil. You can see here, the Dow is at a six-week high.
This morning futures are looking a little weaker. Why? Blame it on Krispy Kreme Donuts. They reported numbers weaker-than-expected in pre-market trading. That stock is down $3 from 15 to 12. We'll be watching that and maybe getting some donuts later to report that story in earnest.
HEMMER: Not so sweet.
SERWER: No.
HEMMER: Thank you, Andy.
SERWER: See you.
HEMMER: In a moment here, Kathryn Burkholder's "New You" challenge was to quit her pack-a-day smoking habit. She had her doubts, and so did we. Were they founded? Sanjay checks in with an update after this on AMERICAN MORNING.
(COMMERCIAL BREAK)
HEMMER: All week long we've been catching up with the five viewers who made their "New You" resolutions back in January and February to feel better and fit. And today, we've got our favorite pack-a-day smoker, Kathryn Burkholder, checking in with her today.
COLLINS: It's such a hard habit to kick. You know, 32-year-old Kathryn was addicted to smoking for more than half of her life. She tried to quit 12 times and wasn't able to do it.
So, Dr. Sanjay Gupta is telling us if, in fact, she has kicked the habit once and for all -- Sanjay.
SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: Good morning, Heidi and Bill. That's right.
Kathryn has tried to quit smoking time and time again. But perhaps it was attempt No. 13 that was her lucky number.
(BEGIN VIDEOTAPE)
GUPTA (voice over): Kathryn bought a brand new car. She's selling her house. She's been promoted as work. And most importantly, she's got an engagement ring on her finger. The wedding's in September.
As far as her "New You" resolution to quit smoking, Kathryn had a minor setback.
KATHRYN BURKHOLDER, "NEW YOU" PARTICIPANT: I've smoked a couple of times, but just one cigarette and long periods of time in between.
GUPTA: But she hasn't gone back to smoking full-time, and she's not giving herself a guilt trip about her lapse.
BURKHOLDER: If you break down after eight months and you smoke two cigarettes, as long as you learn not to get yourself in that situation again (UNINTELLIGIBLE) it feels like I'm stupid and I didn't want to do it again.
GUPTA: Kicking her pack-a-day habit for six months saved her from smoking 4,720 cigarettes and it saved $800. Kathryn is still exercising.
BURKHOLDER: I try to walk for 15 minutes every day, no matter what.
GUPTA: And as far as weight gain, something she feared would go along with quitting smoking...
BURKHOLDER: I've gained three or four pounds depending on the day.
GUPTA: After five months she quit taking prescription medication designed to help her stop, but she's still feeling good.
BURKHOLDER: I'm better than I was before. I'm not as agitated. It's much easier to not smoke, and I don't think about it in certain situations like I would before.
GUPTA: Her message to other folks trying to quit?
BURKHOLDER: You can do it. I didn't ever think I would do it. I mean, you can try and try and try. But I didn't think I would ever feel comfortable without smoking. And I can honestly say I feel pretty comfortable without smoking, even when I'm around people who are smoking.
(END VIDEOTAPE)
GUPTA: And that's Kathryn Burkholder. She's proof that quitting smoking can be tough, but can also lead to some big changes.
Listen, tomorrow is our last day of the "New You" six-month checkup. We're going to check in with the New York City couple. Remember them, Pam and Michael Kirkbride? Their baby, Olivia, just turned 1 year old. We'll find out if they found the time to get some sleep, get their lives in order and make time for themselves.
Bill, Heidi -- back to you.
HEMMER: All right, we'll look forward to that..
COLLINS: And that is not easy, I can tell you that.
GUPTA: Yes, you would know.
COLLINS: I have three, and there is still no sleep.
Still to come this morning, we're keeping a close eye on the developments in Iraq. Of course, thousands of protesters are pouring into Najaf to -- quote -- "rescue" the city. The Grand Ayatollah Ali al-Sistani is already there. We'll have a live update straight ahead on AMERICAN MORNING.
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Aired August 26, 2004 - 07:31 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Welcome back, everyone. It's 7:31 here in New York. Heidi Collins is along with us today.
Good morning to you.
HEIDI COLLINS, CNN ANCHOR: Good morning.
HEMMER: We're watching this situation now in New York, a massive job ahead of them. It's starting this weekend, in fact. Keeping the city safe for the convention. Only days to go, security at unprecedented levels. We'll talk to New York Police Commissioner Ray Kelly about the vast resources now dedicated to this event. They say it's never been done this way before for a single event like this.
COLLINS: Sixty million dollars, yes.
Also, this is a big time of year for buying a new car. But no matter how good of a deal you get, you'll probably be paying bills for years to come. So, in just a few minutes we're going to hear from David Back about something else you need to shop for.
HEMMER: He's got some good advice, too.
First up at the bottom of the hour here, let's get back to Carol Costello at the CNN center and the headlines there.
Carol -- good morning.
CAROL COSTELLO, CNN ANCHOR: Good morning, Bill. Thank you.
Two Turkish companies reportedly began to pull their staff and equipment out of Iraq this morning. According to the Turkish news agency, the move is designed to spare the lives of two abducted workers. A group of Islamic militants issued a warning yesterday threatening to behead the men within 72 hours.
Here in the United States, a Florida man is being treated for severe burns this morning after setting himself and a U.S. Marine van on fire. Now, officials say the man set the blaze just minutes after the marines told him his son had been killed in Iraq. Police say they have not yet determined if charges will be filed.
In just a couple of hours, the Scott Peterson double-murder trial resumes in California. The prosecution is claiming the police wiretaps show Peterson lied to family and friends about the disappearance of his pregnant wife, Laci. The top investigator also admitted police originally believed more than one person may have been involved in her disappearance.
In Nevada this morning, a wildfire is threatening hundreds of homes, prompting officials to call for evacuations south of Reno. Several homes were destroyed after wind-fed flames spread overnight to nearly 3,000 acres. Helicopters and more than a dozen air tankers continue to battle the fast-moving fire. Official say a man shooting targets sparked the blaze.
Back to you -- Bill.
HEMMER: Carol, thanks for that.
We want to get to Iraq again. Powerful forces are headed for a showdown today in Najaf. Grand Ayatollah Ali Sistani, the most senior Shiite leader in Iraq, has arrived back in his home in Najaf. He's leading a march to the mosque at some point, possibly today, occupied by the forces of radical Shiite cleric leader, Muqtada al-Sadr.
Now, earlier, mortars were fired and on hundreds of demonstrators as they got ready to march in nearby Kufa (ph) to Najaf. Twenty-five are dead there. Snipers fired on demonstrators, too, as they marched.
A few minutes ago, I asked "The Washington Post" Baghdad bureau chief, Rajiv Chandrasekaran, about the situation ongoing today.
(BEGIN VIDEOTAPE)
HEMMER: What does Sistani want with this march in Najaf?
RAJIV CHANDRASEKARAN, "WASHINGTON POST": Well, it still remains unclear. I think what he clearly wants is a peaceful resolution to this crisis. He wants Muqtada al-Sadr and his followers to leave that shrine, but he also wants also U.S. troops to pull back from Najaf, one of the holiest for Shiite Muslims around the world.
So, I think he's trying a third-way solution, trying to use his legitimacy as one of the most influential Shiite clerics in the world, and using people power, literally tens of thousands of fellow Shiites, who are amassing with him on the way to Najaf, as a way to sort of pressure both sides here, as a way to force Muqtada al-Sadr to do something that he has thus far refused to do. And that is to vacate the holy shrine of Imam Ali and to force U.S. forces to cease offensive operations and to pull back and to essentially allow the clerical leadership a chance to regain control of the city.
HEMMER: In the past he's tried to broker cease-fires to varying degrees of success. What are the chances now the militia listens to Sistani?
CHANDRASEKARAN: Well, Sadr and Sistani have been rivals. Sadr represent a more activist, upstart, branch of the clergy. He's a younger, more rebellious man. And so, it's not at all certain that Sadr and his followers would listen.
But things have gotten to such a critical stage, and with this sort of pressure and with this number of people coming with Sistani, it certainly will increase the pressure on Sadr to come to some sort of a compromise agreement here.
It also could provide Sadr with a valuable face-saving solution. It would allow him to essentially hand over control of that shrine to a more prominent cleric and may even allow his followers to sort of meld away in this large crowd that is expected there later today.
HEMMER: Yes, and the large crowd earlier today in Kufa, when the mortar rounds were fired into that crowd countless deaths and injuries there, reported sniper fire along the roof in Kufa to nearby Najaf. The U.S. military is strongly denying any involvement in either of these events. How hard is it for the military to convince the Shiite population that they were not involved?
CHANDRASEKARAN: Well, you know, there's a whole gap here between truth and perception. And the perception on the ground, unfortunately, is that it was a U.S. military action, even though U.S. commanders strenuously deny it.
And as events in the past have shown us, really despite, you know, endless denials, there is a little that probably can be done to change those opinions.
I think now the real challenge for the U.S. military and for the Iraqi security forces is to allow this march, this group with Sistani, to come toward the city without a violent confrontation.
(END VIDEOTAPE)
HEMMER: Rajiv Chandrasekaran from "The Washington Post" a short time ago in Baghdad.
Now -- Heidi.
COLLINS: An extraordinary multi-agency security plan is under way in New York City now for next week's Republican National Convention. It is a show of force a U.S. city rarely has seen.
Now, the man in charge of overseeing part of the force assembled to provide security, New York City Police Commissioner Ray Kelly.
Commissioner Kelly, it's always nice to see you.
RAY KELLY, NYC POLICE COMMISSIONER: It's good to be with you.
COLLINS: You know, we're hearing reports, police intelligence reports actually, that anarchists could possibly show up at the RNC. How worried are you about that?
KELLY: Well, I think a lot of disparate groups are going to be arriving at the convention. We've planned for this. We've anticipated the so-called anarchists coming here. We believe the vast majority of demonstrators are going to be peaceful and want their opinions heard. But there are going to be some that are looking to be disruptive, and we're ready for that.
COLLINS: Yes, I mean, when people hear the word, "anarchists," I think they get a little alarmed. How big of a group are we talking about, possibly?
KELLY: It's difficult to say. Perhaps a couple hundred.
COLLINS: All right. Is this possibly going to be a distraction? I mean, there are going to be a whole lot going on. You can talk about maybe four different major categories, if you will. You're talking about guarding against terrorism. You're talking about possible anarchists, sporting events, the U.S. Open, Mets and Yankees. And then also protesters, peaceful protesters will be there. That's a lot of stuff. How do you feel about the resources that you're going to have available?
KELLY: I think we're in good shape. We've done a lot of planning. We've done a lot of training. I think we have sufficient resources to keep the city safe, to make it a peaceful event for the vast majority of people who are participating.
COLLINS: We also know there has been some information coming out about a particular group that had asked to hold their rally or their anti-Bush protest if you will, in Central Park. That has been denied. Talk to us about that. I mean, do you feel like that was a good decision by this state judge?
KELLY: I think it was a reasonable decision. Other groups are actually demonstrating in the park. This particular group is claiming to have 250,000 people, a quarter million in the park in the area they wanted to go just simply just couldn't work.
They're going to have a march. We're talking to that group now. We're working on the details. They'll have a march past Madison Square Garden on Sunday. They'll terminate at a location. Hopefully we'll be able to work in that location today.
COLLINS: So this is a possible new plan?
KELLY: Yes, this is a new plan that we're working on with the group. We believe that some people will go to Central Park. It's an open park. There are 200,000 people there normally on a Sunday. So, some of the so-called protesters will probably go to the park. If they're peaceful, if they obey the law, then, you know, everybody will get along. We'll have an adequate number of police officers there to make certain that the peace is maintained.
COLLINS: What are you most worried about? Again, there's a lot going on. A lot of money has been spent on security. A lot of people are going to be here, visitors and, again, as we say, protesters of whatever kind. What is your main concern (UNINTELLIGIBLE)?
KELLY: Well, obviously we have to be concerned about a terrorist event. That's our No. 1 job, to protect the city against some sort of terrorist attack. I think we're well-positioned to do that. We're working with our federal partners. There are a lot of agencies here that will be working. Obviously there will be demonstrators here. As I say, I think the vast majority will be peaceful. We have, you know, a lot of balls in the air, but I think we're well-positioned to take care of any contingency. COLLINS: We wish you the best of luck, and thanks so much for stopping by to tell us all about it.
KELLY: Thank you, Heidi. Good to be with you.
COLLINS: All right, Commissioner Ray Kelly.
Bill -- oh, pardon. AMERICAN MORNING, we want to let you know, will have live coverage next week from the Republican Convention right here in New York again. That will begin on Monday -- Bill.
HEMMER: It is going to be a big week in the city.
In a moment here on a much different topic, if you're in the market for a car, stick around. Some tips today on getting a loan that will not put you in debt for life.
And another "New You" checkup today, perhaps the toughest challenge of all: kicking the habit. Sanjay checks back in six months later with Kathryn Burkholder in a moment on AMERICAN MORNING.
(COMMERCIAL BREAK)
HEMMER: Cars may get us from point A to point B, but they can also get us to point D as well -- D as in debt.
David Bach is our personal finance contributor, author of "The Automatic Millionaire," in today's edition of "Live Rich Today." He looks at what to watch out for when getting a car loan.
David -- good morning to you.
DAVID BACH, CNN PERSONAL FINANCE CONTRIBUTOR: Good morning, Bill.
HEMMER: Welcome back here.
Two weeks ago we were sitting here talking about bad debt and good debt. And when it came to bad debt, at the top of that list was your car, your automobile.
BACH: That's right.
HEMMER: You need a car, right?
BACH: You have to buy a car. And most people can't afford to pay cash. But here's the key to the car. It's not just the price. Most people will spend days, sometimes weeks, shopping for a good car price, and then spend five minutes shopping for the actual loan itself. You want to spend time on the loan, because that's where you're actually paying. It's that interest rate. So, you want to shop for the interest rate and the loan on the car. That's how you get a good deal on debt.
HEMMER: Take us inside the numbers then, the best way to get your interest rate down. BACH: All right, knowledge is power. You've got to know your credit score. So, go to one of three credit bureaus, whether that's Equifax, Experien or TransUnion. Pull your credit score. Bring that credit score into the car dealership. If you have a score over 650, you've got a decent credit score. You should be able to get a rate right now of below 5 percent. If your score is over 750, the car companies will give you 0 percent financing. You can't beat 0 percent financing.
HEMMER: No, you can't. Where do you get the best car loan deal then after you have that information?
BACH: All right, in addition to the car dealers, you can also go online right now. One company I would look at is a company called PeopleFirst.com. It's owned by Capital One. They are the largest online lenders for cars. So, you can go online, in a matter of minutes, fill out an application and find out if they'll loan you money. Again, their interest rate right now shows below 3 percent. You can also go to eLoan.com, two great sources on the Web.
HEMMER: So then the length of the loan, you advice what?
BACH: Shorter is better, 48 months over 72 months, and here is why. Even though the monthly payment on a 72-month loan is lower, what you'll spend over the life of the loan on a 72-month loan is significantly higher. So, on a $20,000 car, for example, over 48 months you'll spend $23,436. Take that out over 72 months, it's $25,248. So you're spending a couple thousand dollars more over the life of that loan, a bad way to go.
HEMMER: If I am already locked into a high rate, is there any way out for me?
BACH: Absolutely. You can renegotiate. And earlier is better. One thing to consider doing, if you have equity in your home, is actually pulling out an equity loan. And the reason is, if you take that equity out of your house and you buy a car, you can now write off those interest payments. So, that's one opportunity.
The second opportunity is to simply go back to the car dealer and see if they'll refinance with you. In many cases, they will.
HEMMER: I have never heard anyone say that it's better to lease than it is to buy. But is there an exception when it comes to that decision?
BACH: There is an exception. One exception is if you can write it off. If you are somebody who has a business, and you can run your car through your business, and you're driving less than 10,000 miles a year, you can come out ahead in most cases with a lease.
HEMMER: Advice taken to heart. Thank you, David.
BACH: Thank you, Bill.
HEMMER: It's always good to see you here. David Bach, catch him every Thursday here on AMERICAN MORNING with tips on how to "Live Rich Today."
JACK CAFFERTY, CNN ANCHOR: I'm ready.
COLLINS: Jack's ready, he says. So, we're going to turn to him now for the "Question of the Day."
CAFFERTY: An anti-Republican umbrella group, United for Peace and Justice, was -- next week we're going to teach you how to buy a sink! And United for Peace and Justice was denied a permit to demonstrate on the great lawn of Central Park. They've been told they can protest near the Convention Center but not on the great lawn. The city has spent $18 million to fix the lawn. They don't want it destroyed again.
The activists are vowing they're going to go to the park anyway on Sunday. You heard the police commissioner saying he thinks we're prepared. I know Ray Kelly. I guarantee you they're prepared in this town for whatever happens. It's the best police force in the world. Yes, can we have an amen?
UNIDENTIFIED MALE: Amen!
UNIDENTIFIED MALE: Amen!
UNIDENTIFIED MALE: Amen!
CAFFERTY: There you go. Is it right to keep the protesters out of Central Park?
Shawn (ph) in Roanoke, Virginia, writes: "Trying to keep RNC protesters out of Central Park is typical of Republicans trying to stage-manage every aspect of the convention. Protests in Central Park are just as much a typical American activity as conventions and voting. If Republicans can't stand the heat, they should stay out of hell's kitchen."
Hell's kitchen is where the Madison Square Garden are is.
Wayne in Marlton, New Jersey: "Yes, keep the demonstrators out of the park. It took years to renovate the great lawn. I say let them in to Madison Square Garden. I don't know if Republicans meeting NYC citizens would prove anything, but it's bound to be entertaining."
Celia in Lawrence, Kansas: "If not there, where? Do you really want thousands of people blocking up the streets? No."
Tony in Roscoe, Illinois, this is good: "No, we need the presence of the protesters to prevent those Republicans from setting up logging and oil drilling operations in Central Park."
And Sandy in Chesterfield, South Carolina: "As long as the protesters are not violent, I see no reason why they should not be able to rally. And if they disguise themselves as muggers, the cops will never see them anyway." AM@cnn.com. It's going to be a great week next week. Andy and I are going to be at the Tick-Tock Diner (ph) down by Madison Square Garden.
ANDY SERWER, "FORTUNE" MAGAZINE: We'll be drinking some coffee.
CAFFERTY: Down there at the malt shop.
SERWER: Yes.
CAFFERTY: All right.
HEMMER: Bacon, eggs and cheese on toast while you're there.
Thank you, Jack.
You mentioned oil prices finally moving downward. Andy is here to explain all of that.
Dropping like a stone, are they?
SERWER: Yes, well, they're all over the place.
HEMMER: A bit overstatement.
SERWER: Well, yesterday they were dropping like a stone, down 1.74. Look, this is a year-to-date chart for the price of U.S. crude. You can see we've gone all the way up, and now we are sliding down sharply -- excuse me -- sliding sharply down. But that was yesterday, as I said, 1.74 down.
Now, this morning, Pernomo Usgentoro (ph), the head of OPEC, he is an Indonesian, he is jawboning the price of oil, trying to keep it down lower, but not succeeding.
This morning the price of crude is back up about 30 or 40 cents. Why? Conflicting reports coming out of Iraq, violence being inflicted upon pipelines down there. Look at the pictures we've got, sabotage near Basra. It's unclear though whether this was a natural break or whether it was sabotage. It's very difficult to get information.
But, as can you imagine, that is disrupting the flow of oil coming out of Iraq. They usually pump 1.8 million barrels a day. Now they're down to 1.2.
Yesterday the markets went up very nicely because of that drop in oil. You can see here, the Dow is at a six-week high.
This morning futures are looking a little weaker. Why? Blame it on Krispy Kreme Donuts. They reported numbers weaker-than-expected in pre-market trading. That stock is down $3 from 15 to 12. We'll be watching that and maybe getting some donuts later to report that story in earnest.
HEMMER: Not so sweet.
SERWER: No.
HEMMER: Thank you, Andy.
SERWER: See you.
HEMMER: In a moment here, Kathryn Burkholder's "New You" challenge was to quit her pack-a-day smoking habit. She had her doubts, and so did we. Were they founded? Sanjay checks in with an update after this on AMERICAN MORNING.
(COMMERCIAL BREAK)
HEMMER: All week long we've been catching up with the five viewers who made their "New You" resolutions back in January and February to feel better and fit. And today, we've got our favorite pack-a-day smoker, Kathryn Burkholder, checking in with her today.
COLLINS: It's such a hard habit to kick. You know, 32-year-old Kathryn was addicted to smoking for more than half of her life. She tried to quit 12 times and wasn't able to do it.
So, Dr. Sanjay Gupta is telling us if, in fact, she has kicked the habit once and for all -- Sanjay.
SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: Good morning, Heidi and Bill. That's right.
Kathryn has tried to quit smoking time and time again. But perhaps it was attempt No. 13 that was her lucky number.
(BEGIN VIDEOTAPE)
GUPTA (voice over): Kathryn bought a brand new car. She's selling her house. She's been promoted as work. And most importantly, she's got an engagement ring on her finger. The wedding's in September.
As far as her "New You" resolution to quit smoking, Kathryn had a minor setback.
KATHRYN BURKHOLDER, "NEW YOU" PARTICIPANT: I've smoked a couple of times, but just one cigarette and long periods of time in between.
GUPTA: But she hasn't gone back to smoking full-time, and she's not giving herself a guilt trip about her lapse.
BURKHOLDER: If you break down after eight months and you smoke two cigarettes, as long as you learn not to get yourself in that situation again (UNINTELLIGIBLE) it feels like I'm stupid and I didn't want to do it again.
GUPTA: Kicking her pack-a-day habit for six months saved her from smoking 4,720 cigarettes and it saved $800. Kathryn is still exercising.
BURKHOLDER: I try to walk for 15 minutes every day, no matter what.
GUPTA: And as far as weight gain, something she feared would go along with quitting smoking...
BURKHOLDER: I've gained three or four pounds depending on the day.
GUPTA: After five months she quit taking prescription medication designed to help her stop, but she's still feeling good.
BURKHOLDER: I'm better than I was before. I'm not as agitated. It's much easier to not smoke, and I don't think about it in certain situations like I would before.
GUPTA: Her message to other folks trying to quit?
BURKHOLDER: You can do it. I didn't ever think I would do it. I mean, you can try and try and try. But I didn't think I would ever feel comfortable without smoking. And I can honestly say I feel pretty comfortable without smoking, even when I'm around people who are smoking.
(END VIDEOTAPE)
GUPTA: And that's Kathryn Burkholder. She's proof that quitting smoking can be tough, but can also lead to some big changes.
Listen, tomorrow is our last day of the "New You" six-month checkup. We're going to check in with the New York City couple. Remember them, Pam and Michael Kirkbride? Their baby, Olivia, just turned 1 year old. We'll find out if they found the time to get some sleep, get their lives in order and make time for themselves.
Bill, Heidi -- back to you.
HEMMER: All right, we'll look forward to that..
COLLINS: And that is not easy, I can tell you that.
GUPTA: Yes, you would know.
COLLINS: I have three, and there is still no sleep.
Still to come this morning, we're keeping a close eye on the developments in Iraq. Of course, thousands of protesters are pouring into Najaf to -- quote -- "rescue" the city. The Grand Ayatollah Ali al-Sistani is already there. We'll have a live update straight ahead on AMERICAN MORNING.
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