Return to Transcripts main page

CNN Live At Daybreak

President Bush's Second-Term Agenda; Michael Jackson Trial; iPods Too Hot To Handle?

Aired February 02, 2005 - 06:27   ET

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


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


CAROL COSTELLO, CNN ANCHOR: And good morning to you. Welcome to the last half-hour of DAYBREAK. From the Time Warner center in New York, I'm Carol Costello, along with Chad Myers.
"Now in the News."

New word this morning on the pope's health. A Vatican spokesman says John Paul II's condition is stable, and there is no cause for alarm. The pope is in a Rome hospital with a respiratory infection.

Within the last hour, word that Israeli Prime Minister Ariel Sharon has accepted an invitation from Egypt's president to attend a summit there next week. Also attending, Palestinian leader Mahmoud Abbas. The gathering is scheduled for Tuesday at the Red Sea resort of Sharm el Sheikh.

Some alarming intelligence about North Korea. According to published reports this morning, U.S. officials believe North Korea might have exported nuclear material to Libya. The reports say the communist nation has also made more weapons-grade plutonium.

Jesse Jackson joins the effort to free an American hostage in Iraq. Jackson says he'll try to help negotiate the release of Roy Hallums. The American contractor seen on a recent video pleading for his life at gunpoint.

(WEATHER REPORT)

COSTELLO: President Bush talks to you and me and the rest of the world tonight. He'll set out his plans for the next four years. A lot is on his agenda, but there is one thing he's really trying to avoid.

Our Suzanne Malveaux has that for you.

(BEGIN VIDEOTAPE)

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT (voice over): In the State of the Union, President Bush will lay out an ambitious agenda for his second term. But with another four years, he could also face the dreaded second-term curse.

ALAN LICHTMAN, PRESIDENTIAL HISTORIAN: The second-term curse is as old as the Republic.

MALVEAUX: Scandal bedeviled Bill Clinton with the impeachment trial.

WILLIAM J. CLINTON, FORMER PRESIDENT OF THE UNITED STATES: I did not have sexual relations with that woman.

MALVEAUX: Ronald Reagan with Iran-Contra.

RONALD W. REAGAN, FORMER PRESIDENT OF THE UNITED STATES: I didn't know about any diversion of funds to the contras, but as president, I cannot escape responsibility.

MALVEAUX: And Richard Nixon with Watergate.

RICHARD M. NIXON, FORMER PRESIDENT OF THE UNITED STATES: I shall resign the presidency effective at noon tomorrow.

MALVEAUX: So, why does it happen? Is it inevitable?

LICHTMAN: Presidents bring it upon themselves.

MALVEAUX: Presidential historian Alan Lichtman says second- termers potentially aren't as influential, because they can't be re- elected. And it's precisely at this time they are overtaken by arrogance of power and the problem of isolation.

LICHTMAN: They've been in the bubble too long. You lose touch with ordinary people, and you even lose touch with reality.

MALVEAUX: But Lichtman believes Mr. Bush can avoid succumbing to the curse and averting a lame duck presidency by attempting to accomplish the big goals that could establish his legacy.

LICHTMAN: No. 1, he's got to take care of Iraq. If Iraq doesn't work, then everything else falls apart.

MALVEAUX: And making friends may not be necessary to accomplish it.

LICHTMAN: He's not going to make the French and the Germans love him. But if things work in Iraq, if he is able to broker a Middle East peace settlement -- and there does seem to be some opening there -- then, the world will fall in line.

MALVEAUX: But Lichtman says Mr. Bush will need friends to push through his domestic agenda.

LICHTMAN: If he can cut some adroit deals and make some clever compromises, then I think he has a chance to beat the second-term curse.

MALVEAUX: One thing the president has going for him, Lichtman says, is the way he's handled crises in the past.

LICHTMAN: George Bush has been very good on the mini scandals that have come up in his administration, getting out front, taking responsibility and saying we're going to solve it. If he follows that path in the future, it's unlikely he is going to suffer the slings and arrows of scandals that have bedeviled other administrations.

MALVEAUX: And for President Bush, that's the hope.

(END VIDEOTAPE)

COSTELLO: Suzanne Malveaux joins me now from the White House with more on tonight's address.

Good morning -- Suzanne.

MALVEAUX: Good morning, Carol.

COSTELLO: Really, do you think this alleged curse will affect the president? Because things seem to be going rather well for him right now, what, with the elections in Iraq and such.

MALVEAUX: Well, Carol, it's very interesting to know this, because, really, one of the things that he's going to have quite a bit of difficulty with -- and he has so far faced some difficulty -- is the centerpiece of his domestic agenda. And that really is reforming Social Security. So that is something that we expect is going to be at the forefront of this State of the Union address...

COSTELLO: Well, Suzanne, in talking about his Social Security plan, will we find out more of what he really wants to do in his speech tonight?

MALVEAUX: Well, here's what he's going to offer. Senior administration officials are telling us that he going to offer some new details about how he wants this plan to work, to create these private investment accounts to ensure that Social Security is solvent in the future. That these are going to be highly-regulated accounts. They will be voluntary. They'll offer kind of just a few of the low- risk investment possibilities or choices, something that's a similar model to the thrift savings accounts that are offered to members of Congress.

What you're not going to hear, however, is really the size of these new private accounts or even perhaps the benefit cuts that are going to be needed to offset some of those revenue losses. And that is something, of course, that the Democrats have been pushing for.

COSTELLO: Something else the Democrats have been pushing for is an exit strategy out of Iraq. Will the president mention that kind of thing at all?

MALVEAUX: Well, he'll talk about the successful elections in Iraq from just days ago. But he is not going to talk about any kind of clear timetable or exit strategy. You'll hear very much the same language that we've heard before, which is that U.S. troops will stay there until they get the job done, if you look at all of the indications of what the administration has said before. They're asking Congress for $80 billion. They're talking about an investment well into 2006.

So, we don't expect that there is going to be any major withdrawal of troops anytime soon. And we don't expect the president is going to really lay out any kind of clear timetable on that.

COSTELLO: Suzanne Malveaux reporting live from Washington this morning. Thanks, Suzanne.

As you can imagine, the president and his aides craft the State of the Union very carefully. "AMERICAN MORNING's" Soledad O'Brien will be speaking to one of the people responsible for the presidential message.

Good morning -- Soledad.

SOLEDAD O'BRIEN, CNN ANCHOR: Well, that's absolutely right, Carol. Good morning to you.

We're going to preview more of the State of the Union. You heard a little bit from Suzanne there. President Bush is also expected to outline a stack of politically-divisive measures. Many of them are repackaged proposals from previous years. And as you heard from Suzanne, Social Security, immigration among them.

So, what is the big difference this year? This morning, we talk with White House communications director, Dan Bartlett. That's just ahead at the top of the hour -- Carol.

COSTELLO: We'll be right here. Thank you, Soledad.

And tonight, be sure to count on CNN for extensive live coverage of the president's State of the Union address. Our primetime coverage begins at 8:00 p.m. Eastern.

Fidel Castro might be watching President Bush tonight, but the Cuban leader probably won't like what he sees. Mr. Castro says President Bush appeared to be a crazed man when he gave his second inaugural speech last month. Castro also says the only way the U.S. could topple his communist government would be a nuclear war.

Since the U.S.-led war on Iraq, Castro has accused the Bush administration of wanting to invade Cuba. U.S. officials deny that.

Let's talk about Michael Jackson now. I know. We must. Michael Jackson gets a few days from court. But for his lawyers, the work is just starting. Jackson is coming off a second day of jury selection in his child molestation case. And things are moving much faster than expected.

As always, the pop star had his share of well-wishers outside the courtroom.

(BEGIN VIDEOTAPE)

COSTELLO (voice over): For a second day, his fans cheered and Michael Jackson waved as he took the legal stage. This single-gloved fan wore a t-shirt saying, "Save Michael Jackson." "Smooth, but not a criminal," reads this Jackson impersonator's sign.

This time, the pop star wore a dark suit. He wore bright white on the first day of jury selection.

In the courtroom, Jackson paid attention and even took notes.

JANE VELEZ-MITCHELL, REPORTER, "CELEBRITY JUSTICE": I was really impressed with this very lengthy proceeding this morning. He was highly-focused. He was taking notes. He was very engaged. He did not seem to be daydreaming. And I really got the sense that he is aware that he is really fighting for his life. And there is sort of a seriousness that emanates out of him that we haven't seen previously. So that really struck me.

COSTELLO: The judge has cancelled court for the rest of the week. Lawyers will now wade through the long questionnaires filled out by the 250 potential jurors.

ROBERT GORDON, JURY CONSULTATNT: His attorneys are looking for individuals who understand that children can lie. And if not, at least they can form perceptions that are false and spurious. On the other hand, the prosecution is looking for people who believe that children do not lie about sexual impropriety and people who believe in law and order and hate the abuse of children.

COSTELLO: In the meantime, Michael Jackson's fans will have to wait until Monday for the next glimpse of their idol.

(END VIDEOTAPE)

COSTELLO: Jury selection in Michael Jackson's trial is running way ahead of schedule.

Joining me now for more on the process is attorney Bruce Baron.

Thanks for joining DAYBREAK, Bruce.

BRUCE BARON, ATTORNEY: My pleasure.

COSTELLO: This judge is really moving through the jurors. He's already narrowed the pool to 250. Are you surprised by the speed of this process?

BARON: Yes, I'm very surprised and, frankly, concerned, because there seems to be a willingness of half of the jurors, about 100-125, to want to serve on this six-month trial. The way I see it, anybody that wants to give up six months of their life to Michael Jackson either wants to become a movie star or wants a book deal. So, you have to be concerned with that on both sides of the fence.

COSTELLO: Well, how do you combat that, though?

BARON: It's hard, because there's no way around it. You know, you saw the personalities that transpired out of the Peterson prosecution. You know, people are just infatuated with, you know, law cases today, and it's just part of the process. And you don't mind so long as it doesn't corrupt their minds and they can do their job of being a juror. COSTELLO: But don't they have these huge questionnaires to fill out now? And can't you determine things like that from the answers the people put down on these questionnaires?

BARON: Well, you can. The only thing is lie detector tests don't come with the questionnaires. So, you don't know if they're telling the truth or not, you know, and that's the problem.

COSTELLO: You mentioned something before about the judge in this case not wanting to become another Lance Ito. I thought that was interesting.

BARON: Right. Ever since the O.J. case, where people sort of thought that there was a mockery out of the justice system, I think that judges now like to keep it more tight to their vest, as we saw in the Peterson prosecution. This judge is going to show that it's his courtroom.

And you can see it, because in the beginning when Michael Jackson came late, danced on the SUV, there's a more subdued Michael Jackson now. He's now become a lawyer. He has his own pad sitting down, and he's gotten very good advice from his counsel. His counsel told him, show the public, show the jurors and show the judge there's an entertaining side of you, but there's also a real side of you, and you're taking this serious.

COSTELLO: Well, I'm glad you brought that up, because it struck me. You know, they had these trial observers inside of the courtroom, and they're all saying, oh, Michael Jackson looked very serious. I mean, he's up on child molestation charges, so he should be serious about it.

BARON: Absolutely.

COSTELLO: But he could be faking that, too, and doodling on his pad. We don't know. But that doesn't really matter, does it?

BARON: No, it doesn't matter. But whether he's faking or it's real, the bottom line is he has to project this image. Because, truthfully, if people see him not caring about what's being brought against him despite the severity of it, they're going to think he's beyond nuts and, more importantly, guilty.

COSTELLO: OK. So, what is your prediction now that this initial process has moved along so quickly? How fast do you think they'll be able to seat a jury of 12 jurors and 8 alternatives?

BARON: I would say anywhere from four to six weeks they'll be able to seat a jury and then begin what will probably be a five to six month trial.

COSTELLO: Interesting. Bruce Baron, thank you for joining DAYBREAK this morning.

BARON: My pleasure. Thank you. COSTELLO: In "News Across America" this morning, a teenager admits in court that he killed his grandparents three years ago. His attorneys contend 15-year-old Christopher Pittman didn't know any better, because he was on the anti-depressant Zoloft. A prosecution witness testified that Pittman first told police that a man broke into the house and shot his grandparents.

An Ohio Supreme Court justice is in big trouble after police say she drove away from them during a traffic stop. That's her right there. They say Justice Alice Roby Resnick (ph) refused to take a field sobriety test at the scene of the first stop and then drove away. She was later arrested and charged with driving under influence. Her blood alcohol level was reportedly nearly three times the legal limit. She's 65 years old.

Nine-year-old David Dingman-Grover can thank hundreds of well- wishers for today's hospital visit. David has a malignant tumor at the base of his skull. He nicknamed the tumor "Frank," short for Frankenstein. Today's biopsy was paid for by donations. David's mother collected $40,000 from an online auction and other donors to pay for the procedure.

When a member of your family has a serious illness, your bank account can take a huge hit. Coming up, why a trip to the hospital is more than a setback. It could spell financial ruin.

And are you wearing a sign for criminals? Do not be a victim of "pick-podding."

Here's a look at what else is making news this Wednesday morning.

(COMMERCIAL BREAK)

COSTELLO: It's time now for a little -- oh, actually, we have some developing news to tell you about. And I must pass this along to you, because it's more good news out of the Vatican, you could say.

The Vatican says the pope will stay in the hospital for a few more days, but he is sitting up. He's preparing for mass. He ate breakfast. And he's feeling better. The Vatican says the pope still has the flu, though. And he'll be in the hospital for a few more days.

It's time now for a little "Business Buzz." A surprising report this morning. More than half of the personal bankruptcies are caused by medical bills.

Carrie Lee live at the Nasdaq Marketsite.

I guess no surprise there, really, if you think about it.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Well, there are some real surprises in this report, Carol. Back in 2001, illnesses and medical bills did cause half of the personal bankruptcies; this, from a study conducted by researchers at Harvard, published by journal, "Health Affairs." And this was the first study of medical causes of bankruptcy. They conducted this in five states. Most of the people bankrupted by illness did have health insurance. Very surprising here. More than three-quarters of them had health insurance at the start, but 38 percent had lost coverage, at least temporarily, by the time they filed for bankruptcy.

Now, these bankruptcies are estimated to have impacted two million Americans a year. This includes dependents. In a lot of cases, illnesses forced breadwinners to take time off of work. And, of course, when that happens, you lose income, you lose your job-based health insurance, and that's exactly when people need it most.

On average, uncovered medical bills averaged over $13,000 for people with private insurance at the start of their illness. People afflicted with cancer, their medical bills are about $36,000.

So, sobering news in this report, Carol. We'll see if maybe anyone takes this and tries to make some improvements in our health care system.

COSTELLO: Hopefully so. Carrie Lee live at the Nasdaq Marketsite. Thank you.

Just a short time ago, I told you that the Vatican is reporting that the pope will spend a few more days in the hospital. Well, coming up on "AMERICAN MORNING," they're going to have much more on the health of the pope. Bill Hemmer joins us now live to tell us.

Good morning -- Bill.

BILL HEMMER, CNN ANCHOR: Hey, Carol, good morning to you. We're watching and listening for any word out of Rome on the health of Pope John Paul II. Carol, one of the first to know was Ray Flynn (ph). The former U.S. ambassador to the Vatican got a call from Vatican officials late yesterday. We'll talk to him about what they told him about the pope's condition and also what this illness means for about a billion Catholics worldwide in the church.

So, it continues to be a rather developing story. But the latest news we have, Carol, is certainly good news. So, we'll continue to follow it. See you in about 12 minutes.

COSTELLO: And they say he's sitting up and he's preparing for mass. He drank a cup of coffee. So, all of that is good news.

HEMMER: That's right. Very good.

COSTELLO: Wallet, keys, iPod? Your pockets are loaded targets for a thief. And you may not even realize it. Carrying this iPod may be more than carrying just your favorite tunes.

And later, why would anyone want a haircut like Kim Jong Il? From bouffant from barber shop, see why some men are getting trims like Kim's.

(COMMERCIAL BREAK)

COSTELLO: It may be tiny, but it's mighty. I can hold 10,000 of your favorite songs. At about five and a half ounces, you can carry it wherever you go. And with 250 million downloads sold, Apple is selling more than a million songs a day for its hottest seller ever, the iPod.

Want more proof iPods are hot? Just ask the cops. Let me show you. Being connected means you've got an iPod, and that means you're wearing these little, white earpieces. And that makes you a walking target, because everybody knows you're listening to an iPod and you've got one.

Jeff Howe is a contributing editor at "Wired" magazine. He joins me live now.

You know, this all started overseas, this idea that thieves are really targeting people with iPods and then stealing the iPods. How much of a worry is it really?

JEFF HOWE, "WIRED" MAGAZINE: You know, I wouldn't say there is a national crime wave that people should start leaving their iPods at home. But what we do know is that local incidents have started popping up. You're right. It did start in England, but now Philadelphia and even here in New York in the Brooklyn neighborhood of Bedford Stivesent (ph), where people are -- criminals or muggers are specifically targeting people wearing the iPods.

I mean, you're right. The earbuds -- these white earbuds, the same thing that makes it -- was a great branding device for Apple make it easily identifiable that someone is carrying a very expensive device in their pocket.

COSTELLO: Yes, because, actually, young people think it's really cool to walk around with these white earbuds in their ears. And, of course, sometimes being cool isn't so smart.

The reason that these are so hot for thieves is because this is much different than a Walkman perhaps. I mean, who would want to steal a Walkman now?

HOWE: Right.

COSTELLO: It's worth practically nothing.

HOWE: Yes. Well, imagine it this way: Now a thief, you know, the analogy is almost as if they could sneak into your apartment and take, you know, your entire CD collection that you've acquired, you know, painstakingly over years or even decades, you know, 4,000 CDs, 5,000 CDs.

So, absolutely, it's not just the value of the iPod itself, which is an expensive device. I mean, the new iPod Photo is a $600, you know, product. But, you know, of course, yes, the value of the music and everything else that's on there.

COSTELLO: Well, and they can do a lot more. I mean, you can use this for a lot more than just listening to music.

HOWE: A lot more. A lot more. It shouldn't be -- that product isn't really an MP3 players. The iPod is a little computer. And iPod very wisely encouraged third-party companies to build software for this, and people are -- it's incredible that sort of, you know, after- product add-ons and what that's encouraged people to do.

Radiologists are using it in Europe, North America and Australia to load their digital x-rays on it, because it's simply the easiest way to transport these things.

COSTELLO: Isn't that interesting?

HOWE: On the new iPod Photo you can download PowerPoint, so executives no longer have to lug their laptop into a boardroom. They can just plug in the iPod and then direct their PowerPoint presentation.

COSTELLO: That is insane! OK. You know, it sounds so silly, but I guess we should talk about protecting yourself from iPod theft. And, I guess, one of the easiest ways is not putting these earphones in your ears. The famous story about a theft going on, like, all over the Internet is what?

HOWE: Yes.

COSTELLO: That some guy walks up and says, hey, man, do you have an iPod?

HOWE: The one that's been bandied about a lot is what happened in England, where someone came up to someone who was, you know, evidently wearing an iPod, and said, hey, is that an iPod you've got on? And the guy said, yes, and started, you know, touting its virtues. And he said, great, and pulled out a knife and, you know, give it to me. And, you know, the guy handed it over.

If people are concerned about it, they can always use another pair of headphones so it's not a dead giveaway that, you know, they have an iPod in their pocket. But, you know, I'm not sure there is anything to worry about yet.

COSTELLO: No. No. That's true. And we did call the police, and they've had a couple of incidents of iPod theft, but not too many. But it may be coming.

Thank you, Jeff, for joining DAYBREAK this morning.

HOWE: Thank you.

COSTELLO: This is DAYBREAK for a Wednesday morning.

(COMMERCIAL BREAK)

COSTELLO: Let's go right to Pennsylvania, because they're little groundhog is about to come out of his cage, hole, whatever he's in these days, Chad. CHAD MYERS, CNN METEOROLOGIST: He's in a house, Carol.

COSTELLO: Oh, yes, the house. I forgot.

MYERS: Oh, yes, he has a condo, in fact. Out of the years that they've been doing this, 94 times he has seen his shadow and 14 times he has not. So, that's about a 90 percent chance of there being six more weeks of winter.

COSTELLO: OK. Well, when he comes out, we'll show you the moment, the blessed moment. What about...

MYERS: There are 20,000 people in the crowd. There are 7,000 people in the town that live there.

COSTELLO: Absolutely crazy. Have you heard about this story about Kim Jong Il in North Korea?

MYERS: No, something about his hair?

COSTELLO: Something about his hair. Add this to the list of things you cannot do in North Korea, and that is wear your hair long. Men are being urged to cut their hair shorter just like Kim Jong Il's. The order apparently even applies to the leader. Actually, he's going to cut his hair just a little bit, too, because he changed his hairstyle from the big bouffant to shorter.

We haven't seen the new do, but the order states that long hair takes oxygen away from the brain and hampers brain activity. Non- conformers are even being identified by name and address on state TV. So, you can be people are going to wear their hair just like their leader, because they have to.

MYERS: You called it a bouffant?

COSTELLO: It's just -- you know, it's a funny story, but it's so sad underneath. You know, add that to the list of things you cannot do in North Korea.

MYERS: Got it.

COSTELLO: Yes. From the Time Warner center in New York, I'm Carol Costello, along with Chad Myers. "AMERICAN MORNING" starts right now.

MYERS: See you.

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 February 2, 2005 - 06:27   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: And good morning to you. Welcome to the last half-hour of DAYBREAK. From the Time Warner center in New York, I'm Carol Costello, along with Chad Myers.
"Now in the News."

New word this morning on the pope's health. A Vatican spokesman says John Paul II's condition is stable, and there is no cause for alarm. The pope is in a Rome hospital with a respiratory infection.

Within the last hour, word that Israeli Prime Minister Ariel Sharon has accepted an invitation from Egypt's president to attend a summit there next week. Also attending, Palestinian leader Mahmoud Abbas. The gathering is scheduled for Tuesday at the Red Sea resort of Sharm el Sheikh.

Some alarming intelligence about North Korea. According to published reports this morning, U.S. officials believe North Korea might have exported nuclear material to Libya. The reports say the communist nation has also made more weapons-grade plutonium.

Jesse Jackson joins the effort to free an American hostage in Iraq. Jackson says he'll try to help negotiate the release of Roy Hallums. The American contractor seen on a recent video pleading for his life at gunpoint.

(WEATHER REPORT)

COSTELLO: President Bush talks to you and me and the rest of the world tonight. He'll set out his plans for the next four years. A lot is on his agenda, but there is one thing he's really trying to avoid.

Our Suzanne Malveaux has that for you.

(BEGIN VIDEOTAPE)

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT (voice over): In the State of the Union, President Bush will lay out an ambitious agenda for his second term. But with another four years, he could also face the dreaded second-term curse.

ALAN LICHTMAN, PRESIDENTIAL HISTORIAN: The second-term curse is as old as the Republic.

MALVEAUX: Scandal bedeviled Bill Clinton with the impeachment trial.

WILLIAM J. CLINTON, FORMER PRESIDENT OF THE UNITED STATES: I did not have sexual relations with that woman.

MALVEAUX: Ronald Reagan with Iran-Contra.

RONALD W. REAGAN, FORMER PRESIDENT OF THE UNITED STATES: I didn't know about any diversion of funds to the contras, but as president, I cannot escape responsibility.

MALVEAUX: And Richard Nixon with Watergate.

RICHARD M. NIXON, FORMER PRESIDENT OF THE UNITED STATES: I shall resign the presidency effective at noon tomorrow.

MALVEAUX: So, why does it happen? Is it inevitable?

LICHTMAN: Presidents bring it upon themselves.

MALVEAUX: Presidential historian Alan Lichtman says second- termers potentially aren't as influential, because they can't be re- elected. And it's precisely at this time they are overtaken by arrogance of power and the problem of isolation.

LICHTMAN: They've been in the bubble too long. You lose touch with ordinary people, and you even lose touch with reality.

MALVEAUX: But Lichtman believes Mr. Bush can avoid succumbing to the curse and averting a lame duck presidency by attempting to accomplish the big goals that could establish his legacy.

LICHTMAN: No. 1, he's got to take care of Iraq. If Iraq doesn't work, then everything else falls apart.

MALVEAUX: And making friends may not be necessary to accomplish it.

LICHTMAN: He's not going to make the French and the Germans love him. But if things work in Iraq, if he is able to broker a Middle East peace settlement -- and there does seem to be some opening there -- then, the world will fall in line.

MALVEAUX: But Lichtman says Mr. Bush will need friends to push through his domestic agenda.

LICHTMAN: If he can cut some adroit deals and make some clever compromises, then I think he has a chance to beat the second-term curse.

MALVEAUX: One thing the president has going for him, Lichtman says, is the way he's handled crises in the past.

LICHTMAN: George Bush has been very good on the mini scandals that have come up in his administration, getting out front, taking responsibility and saying we're going to solve it. If he follows that path in the future, it's unlikely he is going to suffer the slings and arrows of scandals that have bedeviled other administrations.

MALVEAUX: And for President Bush, that's the hope.

(END VIDEOTAPE)

COSTELLO: Suzanne Malveaux joins me now from the White House with more on tonight's address.

Good morning -- Suzanne.

MALVEAUX: Good morning, Carol.

COSTELLO: Really, do you think this alleged curse will affect the president? Because things seem to be going rather well for him right now, what, with the elections in Iraq and such.

MALVEAUX: Well, Carol, it's very interesting to know this, because, really, one of the things that he's going to have quite a bit of difficulty with -- and he has so far faced some difficulty -- is the centerpiece of his domestic agenda. And that really is reforming Social Security. So that is something that we expect is going to be at the forefront of this State of the Union address...

COSTELLO: Well, Suzanne, in talking about his Social Security plan, will we find out more of what he really wants to do in his speech tonight?

MALVEAUX: Well, here's what he's going to offer. Senior administration officials are telling us that he going to offer some new details about how he wants this plan to work, to create these private investment accounts to ensure that Social Security is solvent in the future. That these are going to be highly-regulated accounts. They will be voluntary. They'll offer kind of just a few of the low- risk investment possibilities or choices, something that's a similar model to the thrift savings accounts that are offered to members of Congress.

What you're not going to hear, however, is really the size of these new private accounts or even perhaps the benefit cuts that are going to be needed to offset some of those revenue losses. And that is something, of course, that the Democrats have been pushing for.

COSTELLO: Something else the Democrats have been pushing for is an exit strategy out of Iraq. Will the president mention that kind of thing at all?

MALVEAUX: Well, he'll talk about the successful elections in Iraq from just days ago. But he is not going to talk about any kind of clear timetable or exit strategy. You'll hear very much the same language that we've heard before, which is that U.S. troops will stay there until they get the job done, if you look at all of the indications of what the administration has said before. They're asking Congress for $80 billion. They're talking about an investment well into 2006.

So, we don't expect that there is going to be any major withdrawal of troops anytime soon. And we don't expect the president is going to really lay out any kind of clear timetable on that.

COSTELLO: Suzanne Malveaux reporting live from Washington this morning. Thanks, Suzanne.

As you can imagine, the president and his aides craft the State of the Union very carefully. "AMERICAN MORNING's" Soledad O'Brien will be speaking to one of the people responsible for the presidential message.

Good morning -- Soledad.

SOLEDAD O'BRIEN, CNN ANCHOR: Well, that's absolutely right, Carol. Good morning to you.

We're going to preview more of the State of the Union. You heard a little bit from Suzanne there. President Bush is also expected to outline a stack of politically-divisive measures. Many of them are repackaged proposals from previous years. And as you heard from Suzanne, Social Security, immigration among them.

So, what is the big difference this year? This morning, we talk with White House communications director, Dan Bartlett. That's just ahead at the top of the hour -- Carol.

COSTELLO: We'll be right here. Thank you, Soledad.

And tonight, be sure to count on CNN for extensive live coverage of the president's State of the Union address. Our primetime coverage begins at 8:00 p.m. Eastern.

Fidel Castro might be watching President Bush tonight, but the Cuban leader probably won't like what he sees. Mr. Castro says President Bush appeared to be a crazed man when he gave his second inaugural speech last month. Castro also says the only way the U.S. could topple his communist government would be a nuclear war.

Since the U.S.-led war on Iraq, Castro has accused the Bush administration of wanting to invade Cuba. U.S. officials deny that.

Let's talk about Michael Jackson now. I know. We must. Michael Jackson gets a few days from court. But for his lawyers, the work is just starting. Jackson is coming off a second day of jury selection in his child molestation case. And things are moving much faster than expected.

As always, the pop star had his share of well-wishers outside the courtroom.

(BEGIN VIDEOTAPE)

COSTELLO (voice over): For a second day, his fans cheered and Michael Jackson waved as he took the legal stage. This single-gloved fan wore a t-shirt saying, "Save Michael Jackson." "Smooth, but not a criminal," reads this Jackson impersonator's sign.

This time, the pop star wore a dark suit. He wore bright white on the first day of jury selection.

In the courtroom, Jackson paid attention and even took notes.

JANE VELEZ-MITCHELL, REPORTER, "CELEBRITY JUSTICE": I was really impressed with this very lengthy proceeding this morning. He was highly-focused. He was taking notes. He was very engaged. He did not seem to be daydreaming. And I really got the sense that he is aware that he is really fighting for his life. And there is sort of a seriousness that emanates out of him that we haven't seen previously. So that really struck me.

COSTELLO: The judge has cancelled court for the rest of the week. Lawyers will now wade through the long questionnaires filled out by the 250 potential jurors.

ROBERT GORDON, JURY CONSULTATNT: His attorneys are looking for individuals who understand that children can lie. And if not, at least they can form perceptions that are false and spurious. On the other hand, the prosecution is looking for people who believe that children do not lie about sexual impropriety and people who believe in law and order and hate the abuse of children.

COSTELLO: In the meantime, Michael Jackson's fans will have to wait until Monday for the next glimpse of their idol.

(END VIDEOTAPE)

COSTELLO: Jury selection in Michael Jackson's trial is running way ahead of schedule.

Joining me now for more on the process is attorney Bruce Baron.

Thanks for joining DAYBREAK, Bruce.

BRUCE BARON, ATTORNEY: My pleasure.

COSTELLO: This judge is really moving through the jurors. He's already narrowed the pool to 250. Are you surprised by the speed of this process?

BARON: Yes, I'm very surprised and, frankly, concerned, because there seems to be a willingness of half of the jurors, about 100-125, to want to serve on this six-month trial. The way I see it, anybody that wants to give up six months of their life to Michael Jackson either wants to become a movie star or wants a book deal. So, you have to be concerned with that on both sides of the fence.

COSTELLO: Well, how do you combat that, though?

BARON: It's hard, because there's no way around it. You know, you saw the personalities that transpired out of the Peterson prosecution. You know, people are just infatuated with, you know, law cases today, and it's just part of the process. And you don't mind so long as it doesn't corrupt their minds and they can do their job of being a juror. COSTELLO: But don't they have these huge questionnaires to fill out now? And can't you determine things like that from the answers the people put down on these questionnaires?

BARON: Well, you can. The only thing is lie detector tests don't come with the questionnaires. So, you don't know if they're telling the truth or not, you know, and that's the problem.

COSTELLO: You mentioned something before about the judge in this case not wanting to become another Lance Ito. I thought that was interesting.

BARON: Right. Ever since the O.J. case, where people sort of thought that there was a mockery out of the justice system, I think that judges now like to keep it more tight to their vest, as we saw in the Peterson prosecution. This judge is going to show that it's his courtroom.

And you can see it, because in the beginning when Michael Jackson came late, danced on the SUV, there's a more subdued Michael Jackson now. He's now become a lawyer. He has his own pad sitting down, and he's gotten very good advice from his counsel. His counsel told him, show the public, show the jurors and show the judge there's an entertaining side of you, but there's also a real side of you, and you're taking this serious.

COSTELLO: Well, I'm glad you brought that up, because it struck me. You know, they had these trial observers inside of the courtroom, and they're all saying, oh, Michael Jackson looked very serious. I mean, he's up on child molestation charges, so he should be serious about it.

BARON: Absolutely.

COSTELLO: But he could be faking that, too, and doodling on his pad. We don't know. But that doesn't really matter, does it?

BARON: No, it doesn't matter. But whether he's faking or it's real, the bottom line is he has to project this image. Because, truthfully, if people see him not caring about what's being brought against him despite the severity of it, they're going to think he's beyond nuts and, more importantly, guilty.

COSTELLO: OK. So, what is your prediction now that this initial process has moved along so quickly? How fast do you think they'll be able to seat a jury of 12 jurors and 8 alternatives?

BARON: I would say anywhere from four to six weeks they'll be able to seat a jury and then begin what will probably be a five to six month trial.

COSTELLO: Interesting. Bruce Baron, thank you for joining DAYBREAK this morning.

BARON: My pleasure. Thank you. COSTELLO: In "News Across America" this morning, a teenager admits in court that he killed his grandparents three years ago. His attorneys contend 15-year-old Christopher Pittman didn't know any better, because he was on the anti-depressant Zoloft. A prosecution witness testified that Pittman first told police that a man broke into the house and shot his grandparents.

An Ohio Supreme Court justice is in big trouble after police say she drove away from them during a traffic stop. That's her right there. They say Justice Alice Roby Resnick (ph) refused to take a field sobriety test at the scene of the first stop and then drove away. She was later arrested and charged with driving under influence. Her blood alcohol level was reportedly nearly three times the legal limit. She's 65 years old.

Nine-year-old David Dingman-Grover can thank hundreds of well- wishers for today's hospital visit. David has a malignant tumor at the base of his skull. He nicknamed the tumor "Frank," short for Frankenstein. Today's biopsy was paid for by donations. David's mother collected $40,000 from an online auction and other donors to pay for the procedure.

When a member of your family has a serious illness, your bank account can take a huge hit. Coming up, why a trip to the hospital is more than a setback. It could spell financial ruin.

And are you wearing a sign for criminals? Do not be a victim of "pick-podding."

Here's a look at what else is making news this Wednesday morning.

(COMMERCIAL BREAK)

COSTELLO: It's time now for a little -- oh, actually, we have some developing news to tell you about. And I must pass this along to you, because it's more good news out of the Vatican, you could say.

The Vatican says the pope will stay in the hospital for a few more days, but he is sitting up. He's preparing for mass. He ate breakfast. And he's feeling better. The Vatican says the pope still has the flu, though. And he'll be in the hospital for a few more days.

It's time now for a little "Business Buzz." A surprising report this morning. More than half of the personal bankruptcies are caused by medical bills.

Carrie Lee live at the Nasdaq Marketsite.

I guess no surprise there, really, if you think about it.

CARRIE LEE, CNN FINANCIAL NEWS CORRESPONDENT: Well, there are some real surprises in this report, Carol. Back in 2001, illnesses and medical bills did cause half of the personal bankruptcies; this, from a study conducted by researchers at Harvard, published by journal, "Health Affairs." And this was the first study of medical causes of bankruptcy. They conducted this in five states. Most of the people bankrupted by illness did have health insurance. Very surprising here. More than three-quarters of them had health insurance at the start, but 38 percent had lost coverage, at least temporarily, by the time they filed for bankruptcy.

Now, these bankruptcies are estimated to have impacted two million Americans a year. This includes dependents. In a lot of cases, illnesses forced breadwinners to take time off of work. And, of course, when that happens, you lose income, you lose your job-based health insurance, and that's exactly when people need it most.

On average, uncovered medical bills averaged over $13,000 for people with private insurance at the start of their illness. People afflicted with cancer, their medical bills are about $36,000.

So, sobering news in this report, Carol. We'll see if maybe anyone takes this and tries to make some improvements in our health care system.

COSTELLO: Hopefully so. Carrie Lee live at the Nasdaq Marketsite. Thank you.

Just a short time ago, I told you that the Vatican is reporting that the pope will spend a few more days in the hospital. Well, coming up on "AMERICAN MORNING," they're going to have much more on the health of the pope. Bill Hemmer joins us now live to tell us.

Good morning -- Bill.

BILL HEMMER, CNN ANCHOR: Hey, Carol, good morning to you. We're watching and listening for any word out of Rome on the health of Pope John Paul II. Carol, one of the first to know was Ray Flynn (ph). The former U.S. ambassador to the Vatican got a call from Vatican officials late yesterday. We'll talk to him about what they told him about the pope's condition and also what this illness means for about a billion Catholics worldwide in the church.

So, it continues to be a rather developing story. But the latest news we have, Carol, is certainly good news. So, we'll continue to follow it. See you in about 12 minutes.

COSTELLO: And they say he's sitting up and he's preparing for mass. He drank a cup of coffee. So, all of that is good news.

HEMMER: That's right. Very good.

COSTELLO: Wallet, keys, iPod? Your pockets are loaded targets for a thief. And you may not even realize it. Carrying this iPod may be more than carrying just your favorite tunes.

And later, why would anyone want a haircut like Kim Jong Il? From bouffant from barber shop, see why some men are getting trims like Kim's.

(COMMERCIAL BREAK)

COSTELLO: It may be tiny, but it's mighty. I can hold 10,000 of your favorite songs. At about five and a half ounces, you can carry it wherever you go. And with 250 million downloads sold, Apple is selling more than a million songs a day for its hottest seller ever, the iPod.

Want more proof iPods are hot? Just ask the cops. Let me show you. Being connected means you've got an iPod, and that means you're wearing these little, white earpieces. And that makes you a walking target, because everybody knows you're listening to an iPod and you've got one.

Jeff Howe is a contributing editor at "Wired" magazine. He joins me live now.

You know, this all started overseas, this idea that thieves are really targeting people with iPods and then stealing the iPods. How much of a worry is it really?

JEFF HOWE, "WIRED" MAGAZINE: You know, I wouldn't say there is a national crime wave that people should start leaving their iPods at home. But what we do know is that local incidents have started popping up. You're right. It did start in England, but now Philadelphia and even here in New York in the Brooklyn neighborhood of Bedford Stivesent (ph), where people are -- criminals or muggers are specifically targeting people wearing the iPods.

I mean, you're right. The earbuds -- these white earbuds, the same thing that makes it -- was a great branding device for Apple make it easily identifiable that someone is carrying a very expensive device in their pocket.

COSTELLO: Yes, because, actually, young people think it's really cool to walk around with these white earbuds in their ears. And, of course, sometimes being cool isn't so smart.

The reason that these are so hot for thieves is because this is much different than a Walkman perhaps. I mean, who would want to steal a Walkman now?

HOWE: Right.

COSTELLO: It's worth practically nothing.

HOWE: Yes. Well, imagine it this way: Now a thief, you know, the analogy is almost as if they could sneak into your apartment and take, you know, your entire CD collection that you've acquired, you know, painstakingly over years or even decades, you know, 4,000 CDs, 5,000 CDs.

So, absolutely, it's not just the value of the iPod itself, which is an expensive device. I mean, the new iPod Photo is a $600, you know, product. But, you know, of course, yes, the value of the music and everything else that's on there.

COSTELLO: Well, and they can do a lot more. I mean, you can use this for a lot more than just listening to music.

HOWE: A lot more. A lot more. It shouldn't be -- that product isn't really an MP3 players. The iPod is a little computer. And iPod very wisely encouraged third-party companies to build software for this, and people are -- it's incredible that sort of, you know, after- product add-ons and what that's encouraged people to do.

Radiologists are using it in Europe, North America and Australia to load their digital x-rays on it, because it's simply the easiest way to transport these things.

COSTELLO: Isn't that interesting?

HOWE: On the new iPod Photo you can download PowerPoint, so executives no longer have to lug their laptop into a boardroom. They can just plug in the iPod and then direct their PowerPoint presentation.

COSTELLO: That is insane! OK. You know, it sounds so silly, but I guess we should talk about protecting yourself from iPod theft. And, I guess, one of the easiest ways is not putting these earphones in your ears. The famous story about a theft going on, like, all over the Internet is what?

HOWE: Yes.

COSTELLO: That some guy walks up and says, hey, man, do you have an iPod?

HOWE: The one that's been bandied about a lot is what happened in England, where someone came up to someone who was, you know, evidently wearing an iPod, and said, hey, is that an iPod you've got on? And the guy said, yes, and started, you know, touting its virtues. And he said, great, and pulled out a knife and, you know, give it to me. And, you know, the guy handed it over.

If people are concerned about it, they can always use another pair of headphones so it's not a dead giveaway that, you know, they have an iPod in their pocket. But, you know, I'm not sure there is anything to worry about yet.

COSTELLO: No. No. That's true. And we did call the police, and they've had a couple of incidents of iPod theft, but not too many. But it may be coming.

Thank you, Jeff, for joining DAYBREAK this morning.

HOWE: Thank you.

COSTELLO: This is DAYBREAK for a Wednesday morning.

(COMMERCIAL BREAK)

COSTELLO: Let's go right to Pennsylvania, because they're little groundhog is about to come out of his cage, hole, whatever he's in these days, Chad. CHAD MYERS, CNN METEOROLOGIST: He's in a house, Carol.

COSTELLO: Oh, yes, the house. I forgot.

MYERS: Oh, yes, he has a condo, in fact. Out of the years that they've been doing this, 94 times he has seen his shadow and 14 times he has not. So, that's about a 90 percent chance of there being six more weeks of winter.

COSTELLO: OK. Well, when he comes out, we'll show you the moment, the blessed moment. What about...

MYERS: There are 20,000 people in the crowd. There are 7,000 people in the town that live there.

COSTELLO: Absolutely crazy. Have you heard about this story about Kim Jong Il in North Korea?

MYERS: No, something about his hair?

COSTELLO: Something about his hair. Add this to the list of things you cannot do in North Korea, and that is wear your hair long. Men are being urged to cut their hair shorter just like Kim Jong Il's. The order apparently even applies to the leader. Actually, he's going to cut his hair just a little bit, too, because he changed his hairstyle from the big bouffant to shorter.

We haven't seen the new do, but the order states that long hair takes oxygen away from the brain and hampers brain activity. Non- conformers are even being identified by name and address on state TV. So, you can be people are going to wear their hair just like their leader, because they have to.

MYERS: You called it a bouffant?

COSTELLO: It's just -- you know, it's a funny story, but it's so sad underneath. You know, add that to the list of things you cannot do in North Korea.

MYERS: Got it.

COSTELLO: Yes. From the Time Warner center in New York, I'm Carol Costello, along with Chad Myers. "AMERICAN MORNING" starts right now.

MYERS: See you.

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