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American Morning

Interview With Richard Branson; School Bus Shooting; '90-Second Pop'

Aired March 03, 2005 - 07:29   ET

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


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


SOLEDAD O'BRIEN, CNN ANCHOR: Good morning. Welcome, everybody. It's just about half past the hour on this AMERICAN MORNING.
Pilot Steve Fossett in the final leg of his around-the-world flight on a single tank of gas. He's running into trouble, though. Fuel problems, exhaustion. Sir Richard Branson, a daredevil himself and the financial backer of this trip, he's our guest coming up. He's going to tell us how he thinks this one is going to end.

BILL HEMMER, CNN ANCHOR: Also in a moment here out of Tennessee, a disturbing story from yesterday. A 14-year-old boy is accused of shooting his school bus driver on the way to school to death. Was this all about an argument over chewing tobacco? We'll talk to the D.A. and also the head of schools in the area about what happened there.

O'BRIEN: Oh, a terrible story. A terrible tragedy this morning to talk about.

HEMMER: Yes.

O'BRIEN: Other stories making headlines as well. Carol Costello has a look at that this morning.

Good morning -- Carol.

CAROL COSTELLO, CNN ANCHOR: Good morning to you. Good morning all of you.

"Now in the News."

President Bush is launching a 60-day, 60-stop tour to promote his Social Security plan. He's not given up yet. Aides are announcing the president will be on the road campaigning at least one day a week until May 1. He heads to Indiana and New Jersey tomorrow.

In the meantime, President Bush is expected to be on hand as the new homeland security chief officially takes the reins today in Washington. In about two hours, the swearing-in ceremony for Michael Chertoff. Chertoff is becoming the second person to hold that post. We'll have live coverage of the ceremony at 9:30 a.m. Eastern.

In California, a photographer assigned to film Michael Jackson's Neverland Ranch is set to take the stand in the pop star's child molestation trial. Jackson's spokeswoman says the entertainer is very happy with the testimony during the past two days. He's expected to be back in court later this morning.

And some sad news to report this hour. Remember that giant lobster we told you about? You know, there he is. Well, apparently a trip to the zoo turned out to be just too much for 22-pound Bubba. After avoiding lobster pots for years and years, Bubba has died at the Pittsburgh Zoo. Based on his size, some estimated the lobster to be about 100 years old, which means he was born way back in 1905. And, of course, he died yesterday at the age of 100, we think, 2005 -- Soledad.

O'BRIEN: Oh, that's sad news. All right, Carol, thanks.

Well, Steve Fossett says he's going to go for it. Thanks to favorable tail winds, the millionaire-adventurer believes that he can complete his attempt to fly around the world solo on one tank of gas. There were concerns that he would have to abort after his plane lost 2,600 pounds of fuel on Monday. The belief is that a faulty gauge resulted in the fuel tank not getting filled to capacity.

I spoke earlier with the man who is bankrolling this adventure, Sir Richard Branson, and I asked him just where Fossett is right now.

(BEGIN VIDEOTAPE)

SIR RICHARD BRANSON, CHAIRMAN, VIRGIN ATLANTIC AIRWAYS: He's nearly all the way across the Pacific. In fact, he's at the exact spot when Steve and myself were trying to go around the world in the balloon that we had to abandon the trip because we, you know, hit a blanket wall of bad weather as we were getting to America.

Steve, on the other hand, has enough fuel to continue and should reach the American coast in about two to three hours' time and is going to make every best effort to get all the way to Salina. So, we're hoping that, all going well, that he'll get here by about 12:00 to 1:00 Salina time.

O'BRIEN: I know that the fuel problems obviously have been a very big issue. So tail winds have become really critical. How are those tail winds looking now?

BRANSON: They're not absolutely perfect. I mean, we were hoping that he would -- we would get him in about five hours earlier. But, you know, fortunately, he lost that fuel right at the beginning of the journey, and therefore, you know, he's been flying a light craft around the world. The plane has been beautifully built. And so, you know, we're still at this stage hopeful that he'll make it the whole way.

If he does run out of fuel, he's also perhaps the No. 1 glider, the most experienced glider in the world. Glidest (ph). What's the word for a glider?

O'BRIEN: I'd say glider. That works for me. You say there is a silver lining here even if sort of what you don't want to happen does happen. I'm curious to know, you're a fellow adventurer. You're close friends with Steve Fossett outside of your business relationship in this case. He sounded so tired in the press conference. How's he doing?

BRANSON: Well, I talked to him about 10 minutes ago, and his exact words was that it's kind of a long trip. And, you know, it has been one hell of a trip to, you know, stay awake that long, to have had the amount of dramas he's had on the trip, and not to be sure, you know, whether you're going to -- you know, whether he was going to succeed.

But, you know, he went into that with his eyes open. He knew that -- you know, he knew what he was letting himself in for. And he's an incredibly capable, calm person.

And I think that now that, you know, there's a possibility that he may make it the whole way around, the adrenaline will kick in. And, you know, he's certainly not going to go to sleep now.

O'BRIEN: No, I wouldn't imagine so. Just a few seconds to answer this, if you will. You've been following behind in another plane. What's it like to watch history, potentially, maybe if you cross your fingers, being made?

BRANSON: Oh, I mean, you know, for Virgin Atlantic, who sponsored this, and for all the team here, I mean, it's fantastic to be involved. And, you know, it will be one hell of an entry into the record books if he can pull it off. So we've been very fortunate to be able to participate.

(END VIDEOTAPE)

O'BRIEN: We are expecting more news from the Fossett camp in just about an hour and a half, maybe some more details on exactly what happened with that fuel. You want to stay with CNN for the latest on this historic adventure -- Bill.

HEMMER: It's about 25 minutes now before the hour. A 14-year- old high school freshman is behind bars this morning, accused of shooting and killing his school bus driver. Police say the teen killed the driver in front of about two dozen other students in Dover, Tennessee, about 50 miles northwest of Nashville.

The victim, 47-year-old Joyce Gregory, shot in front of the boy's home as she stopped to pick him up.

The district attorney is Dan Alsobrooks, and the director of Stewart County schools is Dr. Phillip Wallace.

(BEGIN VIDEOTAPE)

HEMMER: Dr. Wallace, can you tell us why Joyce Gregory would be a target?

PHILLIP WALLACE, DIRECTOR, STEWART CO. SCHOOLS: At this time, I'd rather not comment on that, because that might impede the ongoing investigation. I will say that Ms. Gregory was a very valued member of this community. The schools and the community are certainly saddened today. We're filled with grief. We're shocked about this incident. And I know that Stewart County is the kind of community that will close ranks and will come together, and we'll move forward. We'll certainly never forget this tragic day.

HEMMER: Mr. Alsobrooks the student apparently had never been in trouble before, and A and a B student in class. What set him off, sir?

DAN ALSOBROOKS, DISTRICT ATTORNEY: Well, the investigation is still ongoing. And, you know, we're basically working on two things now, and that is to interview all of the students and all of the people that might have any knowledge about this. We certainly want to rule out the possibility of anybody else being involved at this point in time. We don't have any indications that there were.

But there were some history between -- that I can't go into a lot of detail about. But there was some history between the bus driver, the victim in this case, and the student. There had been disciplinary problems at that point in time, and he was apparently angry at her about that.

HEMMER: There's a report that says there was an argument over chewing tobacco. Was that the case? Was that the history you're referring to?

ALSOBROOKS: I think that's part of it. I can't go into a lot of details at this point in time, because we haven't got to court with it yet. But I think that's the nature of what we're talking about here.

HEMMER: One report also suggests he'll be given a mental evaluation for at least 30 days. Is there a suggestion in this that he was not a fit mental frame yesterday morning?

ALSOBROOKS: Not really. It's kind of standard procedure in a first-degree murder case even with adults that an evaluation be done. But certainly when you're talking about a 14-year-old student that would be a normal procedure, even if there were no indicators of any kind of mental problems. So we just do that normally in this sort of case.

HEMMER: Let me go back to Dr. Wallace and the next question. At least two students are praised for what's described as a heroic response on board that bus. What did they do, Doctor?

WALLACE: You know, as sad and as tragic as this situation is, you know, it was heart rendering to see these students and the way they reacted to this very tragic incident. The driver of the bus was on top of a hill. And when the driver fell out of her seat after she was shot, then one of the students immediately ran, got in the seat. The bus was rolling down the hill. The student couldn't put their foot on the brake, but they did steer the vehicle into a telephone pole, which prevented the bus from going down a very steep incline hill and prevented further injury from the students that were already on the bus.

The older students took care of the younger students. They did as they were trained. We trained them to go out the exit that was open, and the back exit was opened. The older students opened the door and assisted the younger children off the bus. So we're very proud of the heroics of these students on the bus. We're very proud of them.

(END VIDEO CLIP)

HEMMER: At this point, the 14-year-old student has been charged as a juvenile with first-degree murder. Police have the gun used in that killing, but have not said where the boy got that gun -- Soledad.

O'BRIEN: It's time now to take a look at the weather for the day ahead. Chad Myers is at the CNN center for us.

(WEATHER REPORT)

HEMMER: In a moment here, it is tax time. We know that. But should you expect a fat refund or a big, fat bill? Andy is going to...

O'BRIEN: What's a refund?

HEMMER: Yes, we'll check A in that column. Andy is "Minding Your Business." We'll talk to him in a moment here.

O'BRIEN: Also, Martha Stewart's new TV gig is supposed to rehab her image. But one Martha watcher says it could do more harm than good. "90-Second Pop" is ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everyone. And back to Jack and the "Question of the Day" this morning.

JACK CAFFERTY, CNN ANCHOR: A dire warning from the head of the Federal Reserve. The U.S. is headed towards decades of economic stagnation, according to Alan Greenspan. If Congress doesn't act soon to cut spending on Social Security, Medicare and other government programs, the deficits will balloon ever bigger.

Forget Social Security reform. It isn't going to happen. Polls indicate the public doesn't want it. And that's all Congress needs to hear to say they're not going to do anything until maybe next year. Well, nothing will happen next year either.

Medicare is an even bigger problem. Nothing is being done about that. And hoping the federal government will cut spending in a meaningful way is like expecting pigs to stop eating.

The question this morning is: What's the answer to the country's financial problems? And we're getting a lot of very interesting thoughts, as they say.

Tammy in Midland, Michigan: "There aren't any problems. The Bush plan is right on schedule. You'll either be very, very rich or poor, just like in the old days. Live for now and for me, and later it's someone else's problem." John Michael in Florida: "We need to make changes. The first would be to get the millionaires out of office. We need real folks running for elected office. We need people who truly know how to budget, clip coupons and save money. We need elected officials who won't pass legislation that favors their corporate donors at the expense of the citizens."

Steve in Staten Island writes: "What we have to do is improve the economy in China. This way they can buy more of our stuff. That will solve the trade deficit."

Go back to bed. Pardon me.

Robert in Chicago writes: "Our government spends too (EXPLETIVE DELETED) much money on curing the ills of the world instead of taking care of the home front. If the people in charge could get it through their thick skulls that we don't elect them to heal the universe but rather to make our lives better, we would be ahead of the game."

And David in Japan writes: "Jack, I'm no Andy Serwer, but it seems to me that if I spend more money than I make, eventually I'll wind up living in my parents' basement. It's the job of every politician to explain to guys like me why the same logic doesn't apply to them."

HEMMER: Don't move home. You were saying yesterday during a commercial break, you were giving some dire predictions about the stock market.

CAFFERTY: Well, I don't...

HEMMER: Over-accelerated.

CAFFERTY: I don't know what the stock market is going to do. But there are a lot of things that it seems to me are conspiring to perhaps make this a very difficult year for the stock market.

HEMMER: Such as?

CAFFERTY: The decline in the value of the dollar. The escalation of interest rates. The beginning of the erosion of the real estate market.

ANDY SERWER, "FORTUNE" MAGAZINE: The deficits.

CAFFERTY: Deficits. Declines in corporate earnings on a year- over-year basis. The fact that we haven't done anything meaningful to deal with corporate fraud. How much time do we have?

SERWER: Yes.

HEMMER: That will do it for now on that.

SERWER: Thank you.

HEMMER: Thank you, Jack. O'BRIEN: Jack, thanks.

Well, there is some good news for early tax filers. Here with that and a look at the markets this morning, Andy Serwer is "Minding Your Business."

Hello.

SERWER: Hey, Soledad.

Let's talk about the markets yesterday, that sobering testimony from chief Greenspan that Jack was talking to put a damper on things a little bit. That and higher crude prices sent the Dow down 18 points. The Nasdaq and S&P followed suit.

Today could be kind of a wait-and-see day, because the big jobs report for the month of February comes out on Friday.

I want to talk about Martha Stewart because Jack likes me to talk about Martha Stewart. Take a look at this stock chart here. This stock has gone up twofold since she's been in jail. But look at the tip there. You can see how it's trading down. The stock has been down five days in a row.

And there's a little bit of a lesson here. If investors think, wow, it's a good time to buy her stock, she's getting out of jail, Wall Street already did that. Wall Street already figured it out. The stock has already gone up. In fact, I wouldn't be surprised if the stock trades down a little bit, very dangerous perhaps to get into the stock at this point. I'm not saying it's going to go down precipitously. But a lot of the fact that she's getting out has already been priced into the stock, I would think.

Tax refunds, as Soledad mentioned, good news there. The average filer has gotten $200 more back this year as compared to the previous year. These are early filers obviously. That's a 9 percent increase from 2000, $230, to 2004, $236. Why? Because of tax changes, particularly for lower-income families. The child tax credit taking effect.

And here's an interesting thing, Soledad. For the first time, more than half of American families and individuals will be filing online, electronically.

O'BRIEN: Wow!

SERWER: A big change there.

O'BRIEN: Yes, that is a huge change.

SERWER: Interesting.

O'BRIEN: All right, Andy, thanks.

SERWER: You're welcome. O'BRIEN: Well, Martha Stewart could walk out of prison as early as midnight. What's the very first thing she should do? The 90- second popper have some tips for her in a special edition, up next on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: I like that song. Hey, everybody. Good morning. Just in time for spring, getting sprung. It's a good thing for Martha Stewart and big enough to warrant a special edition of "90-Second Pop".

With us this morning, Andy Borowitz from Borowitzreport.com. "Newsweek's" senior writer, Charles Gasparino. He's covered Stewart's trial, also has written "Blood on the Street" about Wall Street and the duping of investors. And our pop panelist dejure (ph), senior legal analyst Jeff Toobin.

Nice to see you, Jeff.

JEFFERY TOOBIN, CNN SENIOR LEGAL ANALYST: Good morning.

O'BRIEN: All right, let's get right to it. Andy, we're going to start with you. Martha, Martha, Martha. What do you think the first thing she needs to do when she steps out of the walls of prison and goes into her new sort of prison? What do you think she should do first?

ANDY BOROWITZ, BOROWITZREPORT.COM: Well, it's true. She is going to be under house arrest. So she's just kind of trading one gated community for another at this point. But she's -- I guess her first big moment is going to be the cameras waiting outside of prison. And there are going to be a lot of people sort of waiting to see, is this a changed Martha? Is this the same Martha?

I think she should be humble. I think she probably should say that this was a transforming experience. I would avoid saying thins like I'm going to Disneyland, for example. It would be a mistake. So I think that's going to be her first sort of big media moment.

O'BRIEN: Do you think she should -- does it help or not help if she says, you know, I'm not guilty, reiterate that? Or does she say I've learned my lesson?

TOOBIN: I think you move on from the...

CHARLES GASPARINO, SENIOR WRITER, "NEWSWEEK": Forget about this situation.

TOOBIN: I think discussing ImClone stock at this point is probably not what she wants to do. It's all about the future for her, not the past.

O'BRIEN: And it's going to be a big moment. I mean, the bottom line is people want to see what she looks like. The word is that she's lost weight. GASPARINO: She looks pretty great, according to our cover.

O'BRIEN: Yes.

TOOBIN: Yes.

(CROSSTALK)

O'BRIEN: Because, you know, "Newsweek" has gotten a lot of flack for that. That body is not Martha Stewart's body.

GASPARINO: I mean, it looks just like her.

BOROWITZ: I wish "Newsweek" could do that to my body. That's great. This is what I don't understand, so I read that, you know, while she's under arrest, she is hiring the chef from this New York restaurant, Le Cirque, which is a fabulous French restaurant.

GASPARINO: Le Cirque.

BOROWITZ: Le Cirque, well, whatever.

GASPARINO: I'm sorry.

BOROWITZ: But I think it's a...

GASPARINO: (UNINTELLIGIBLE) a few places.

BOROWITZ: I think it's a huge mistake, because whatever they were feeding her in prison has totally agreed with her.

GASPARINO: Right.

O'BRIEN: Oh, exactly. You need mushy oatmeal and bad food to keep that great figure.

BOROWITZ: Yes. She said they cut back on the fat. Didn't she complain about that?

BOROWITZ: She did.

GASPARINO: The food was lousy.

BOROWITZ: She did.

GASPARINO: Actually starvation...

O'BRIEN: The food is always lousy in prison.

(CROSSTALK)

TOOBIN: Tonight on the CNN special we're doing, one of her guests says that, you know, they have these vending machines, and she said, oh, get the chicken in the vending machine. It's really delicious.

(CROSSTALK)

O'BRIEN: Oh. Chicken in the vending machine. Ew!

TOOBIN: Tastes have changed, yes.

O'BRIEN: Let's talk about business. She wants to go back to running her company.

GASPARINO: Right.

O'BRIEN: And there are some issues about that. Also, she set up these TV deals as well.

GASPARINO: Right.

O'BRIEN: What would you advise, Charles, as she steps out of prison?

GASPARINO: Try to run the company. I mean, it's her company. Her name is on it. I mean, she faces a bar from the SEC, although we reported on "Newsweek" that she's trying to get that eliminated. I mean, listen, I think she is the face of the company. The sooner she gets back to running it, being the official CEO, the better it is for the stock.

O'BRIEN: How about TV...

GASPARINO: And the stock has done very well lately.

O'BRIEN: How about the TV deals, you guys? What do think?

GASPARINO: A double-edged sword.

TOOBIN: I think it's, you know...

GASPARINO: Listen, if the nasty Martha, right, that's going to hurt her product. If she's nice on TV, that's going to destroy -- I mean, who wants to watch a nice person on one of these reality shows?

O'BRIEN: You never know.

BOROWITZ: Well, you know, Trump -- I mean, Trump is definitely kind of the boss from hell in a way.

GASPARINO: Right.

BOROWITZ: And Martha fits into that role. It could be good. I was sort of sorry that she didn't, like, go on "Desperate Housewives." Because I think she was, like, the original. She's the uber (ph) desperate housewife.

O'BRIEN: It might be a little too close to home.

BOROWITZ: Maybe a (UNINTELLIGIBLE).

O'BRIEN: Let's talk legal issues, lots of legal challenges. I mean, she's not free and clear, and not just the probation we're talking about.

TOOBIN: Right. I mean, you know, the ankle bracelet will be a big part of her life for the next five months. And I think that's going to be -- you know, what is the etiquette of dealing with an ankle bracelet?

O'BRIEN: Pants all the time.

TOOBIN: Do you wear pants all the time?

O'BRIEN: I thought (UNINTELLIGIBLE).

GASPARINO: It might be very nice with an ankle bracelet.

TOOBIN: Do you ask to see it if you're a friend of hers? Do you say, "Can I see it?" I mean, a lot of people are going to be sort of trying to sneak...

O'BRIEN: That would be tacky.

TOOBIN: ... to see it on her ankle there. But, you know, the legal issues are bad, but they won't preoccupy her that much. They're almost all civil proceedings at this point. I mean, you know, she's got to get her business going again. And that will take care of all of the problems if, you know, the stock goes back up and the ratings are high on her TV show.

O'BRIEN: Her business...

GASPARINO: Unless they bar her from running the business. I mean, the SEC wants to bar her from running the business.

TOOBIN: But, you know, technically they can bar her from being the CEO.

GASPARINO: Right.

TOOBIN: But can't keep her out of being an employee.

GASPARINO: She could be creative director.

O'BRIEN: She'll be creative director and still run it.

GASPARINO: I think she wants to run it.

TOOBIN: Exactly.

O'BRIEN: At the end of the day, it's all about the PR...

TOOBIN: Whose name is on the door?

O'BRIEN: ... and getting back into the business.

GASPARINO: Right.

TOOBIN: Yes. O'BRIEN: And whatever choices she makes. It will be interesting to follow. You guys, thank you very much. Appreciate it.

GASPARINO: Thank you.

O'BRIEN: A lot more on Martha's release. It's going to be tonight on primetime on CNN at 10:00 p.m., the special hour of "PEOPLE IN THE NEWS" that contains some exclusive prison footage and looks at how life behind bars has changed Martha Stewart. Again, that's tonight, 10:00 Eastern, right here on CNN -- Bill.

HEMMER: Let's get a break here. In a moment, top stories are straight ahead. And the Kobe Bryant matter now comes to an end. The NBA star reaching a settlement with his accuser. Was it the right thing to do, though? And why now? Back in a moment here on AMERICAN MORNING.

(COMMERCIAL BREAK)

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Aired March 3, 2005 - 07:29   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOLEDAD O'BRIEN, CNN ANCHOR: Good morning. Welcome, everybody. It's just about half past the hour on this AMERICAN MORNING.
Pilot Steve Fossett in the final leg of his around-the-world flight on a single tank of gas. He's running into trouble, though. Fuel problems, exhaustion. Sir Richard Branson, a daredevil himself and the financial backer of this trip, he's our guest coming up. He's going to tell us how he thinks this one is going to end.

BILL HEMMER, CNN ANCHOR: Also in a moment here out of Tennessee, a disturbing story from yesterday. A 14-year-old boy is accused of shooting his school bus driver on the way to school to death. Was this all about an argument over chewing tobacco? We'll talk to the D.A. and also the head of schools in the area about what happened there.

O'BRIEN: Oh, a terrible story. A terrible tragedy this morning to talk about.

HEMMER: Yes.

O'BRIEN: Other stories making headlines as well. Carol Costello has a look at that this morning.

Good morning -- Carol.

CAROL COSTELLO, CNN ANCHOR: Good morning to you. Good morning all of you.

"Now in the News."

President Bush is launching a 60-day, 60-stop tour to promote his Social Security plan. He's not given up yet. Aides are announcing the president will be on the road campaigning at least one day a week until May 1. He heads to Indiana and New Jersey tomorrow.

In the meantime, President Bush is expected to be on hand as the new homeland security chief officially takes the reins today in Washington. In about two hours, the swearing-in ceremony for Michael Chertoff. Chertoff is becoming the second person to hold that post. We'll have live coverage of the ceremony at 9:30 a.m. Eastern.

In California, a photographer assigned to film Michael Jackson's Neverland Ranch is set to take the stand in the pop star's child molestation trial. Jackson's spokeswoman says the entertainer is very happy with the testimony during the past two days. He's expected to be back in court later this morning.

And some sad news to report this hour. Remember that giant lobster we told you about? You know, there he is. Well, apparently a trip to the zoo turned out to be just too much for 22-pound Bubba. After avoiding lobster pots for years and years, Bubba has died at the Pittsburgh Zoo. Based on his size, some estimated the lobster to be about 100 years old, which means he was born way back in 1905. And, of course, he died yesterday at the age of 100, we think, 2005 -- Soledad.

O'BRIEN: Oh, that's sad news. All right, Carol, thanks.

Well, Steve Fossett says he's going to go for it. Thanks to favorable tail winds, the millionaire-adventurer believes that he can complete his attempt to fly around the world solo on one tank of gas. There were concerns that he would have to abort after his plane lost 2,600 pounds of fuel on Monday. The belief is that a faulty gauge resulted in the fuel tank not getting filled to capacity.

I spoke earlier with the man who is bankrolling this adventure, Sir Richard Branson, and I asked him just where Fossett is right now.

(BEGIN VIDEOTAPE)

SIR RICHARD BRANSON, CHAIRMAN, VIRGIN ATLANTIC AIRWAYS: He's nearly all the way across the Pacific. In fact, he's at the exact spot when Steve and myself were trying to go around the world in the balloon that we had to abandon the trip because we, you know, hit a blanket wall of bad weather as we were getting to America.

Steve, on the other hand, has enough fuel to continue and should reach the American coast in about two to three hours' time and is going to make every best effort to get all the way to Salina. So, we're hoping that, all going well, that he'll get here by about 12:00 to 1:00 Salina time.

O'BRIEN: I know that the fuel problems obviously have been a very big issue. So tail winds have become really critical. How are those tail winds looking now?

BRANSON: They're not absolutely perfect. I mean, we were hoping that he would -- we would get him in about five hours earlier. But, you know, fortunately, he lost that fuel right at the beginning of the journey, and therefore, you know, he's been flying a light craft around the world. The plane has been beautifully built. And so, you know, we're still at this stage hopeful that he'll make it the whole way.

If he does run out of fuel, he's also perhaps the No. 1 glider, the most experienced glider in the world. Glidest (ph). What's the word for a glider?

O'BRIEN: I'd say glider. That works for me. You say there is a silver lining here even if sort of what you don't want to happen does happen. I'm curious to know, you're a fellow adventurer. You're close friends with Steve Fossett outside of your business relationship in this case. He sounded so tired in the press conference. How's he doing?

BRANSON: Well, I talked to him about 10 minutes ago, and his exact words was that it's kind of a long trip. And, you know, it has been one hell of a trip to, you know, stay awake that long, to have had the amount of dramas he's had on the trip, and not to be sure, you know, whether you're going to -- you know, whether he was going to succeed.

But, you know, he went into that with his eyes open. He knew that -- you know, he knew what he was letting himself in for. And he's an incredibly capable, calm person.

And I think that now that, you know, there's a possibility that he may make it the whole way around, the adrenaline will kick in. And, you know, he's certainly not going to go to sleep now.

O'BRIEN: No, I wouldn't imagine so. Just a few seconds to answer this, if you will. You've been following behind in another plane. What's it like to watch history, potentially, maybe if you cross your fingers, being made?

BRANSON: Oh, I mean, you know, for Virgin Atlantic, who sponsored this, and for all the team here, I mean, it's fantastic to be involved. And, you know, it will be one hell of an entry into the record books if he can pull it off. So we've been very fortunate to be able to participate.

(END VIDEOTAPE)

O'BRIEN: We are expecting more news from the Fossett camp in just about an hour and a half, maybe some more details on exactly what happened with that fuel. You want to stay with CNN for the latest on this historic adventure -- Bill.

HEMMER: It's about 25 minutes now before the hour. A 14-year- old high school freshman is behind bars this morning, accused of shooting and killing his school bus driver. Police say the teen killed the driver in front of about two dozen other students in Dover, Tennessee, about 50 miles northwest of Nashville.

The victim, 47-year-old Joyce Gregory, shot in front of the boy's home as she stopped to pick him up.

The district attorney is Dan Alsobrooks, and the director of Stewart County schools is Dr. Phillip Wallace.

(BEGIN VIDEOTAPE)

HEMMER: Dr. Wallace, can you tell us why Joyce Gregory would be a target?

PHILLIP WALLACE, DIRECTOR, STEWART CO. SCHOOLS: At this time, I'd rather not comment on that, because that might impede the ongoing investigation. I will say that Ms. Gregory was a very valued member of this community. The schools and the community are certainly saddened today. We're filled with grief. We're shocked about this incident. And I know that Stewart County is the kind of community that will close ranks and will come together, and we'll move forward. We'll certainly never forget this tragic day.

HEMMER: Mr. Alsobrooks the student apparently had never been in trouble before, and A and a B student in class. What set him off, sir?

DAN ALSOBROOKS, DISTRICT ATTORNEY: Well, the investigation is still ongoing. And, you know, we're basically working on two things now, and that is to interview all of the students and all of the people that might have any knowledge about this. We certainly want to rule out the possibility of anybody else being involved at this point in time. We don't have any indications that there were.

But there were some history between -- that I can't go into a lot of detail about. But there was some history between the bus driver, the victim in this case, and the student. There had been disciplinary problems at that point in time, and he was apparently angry at her about that.

HEMMER: There's a report that says there was an argument over chewing tobacco. Was that the case? Was that the history you're referring to?

ALSOBROOKS: I think that's part of it. I can't go into a lot of details at this point in time, because we haven't got to court with it yet. But I think that's the nature of what we're talking about here.

HEMMER: One report also suggests he'll be given a mental evaluation for at least 30 days. Is there a suggestion in this that he was not a fit mental frame yesterday morning?

ALSOBROOKS: Not really. It's kind of standard procedure in a first-degree murder case even with adults that an evaluation be done. But certainly when you're talking about a 14-year-old student that would be a normal procedure, even if there were no indicators of any kind of mental problems. So we just do that normally in this sort of case.

HEMMER: Let me go back to Dr. Wallace and the next question. At least two students are praised for what's described as a heroic response on board that bus. What did they do, Doctor?

WALLACE: You know, as sad and as tragic as this situation is, you know, it was heart rendering to see these students and the way they reacted to this very tragic incident. The driver of the bus was on top of a hill. And when the driver fell out of her seat after she was shot, then one of the students immediately ran, got in the seat. The bus was rolling down the hill. The student couldn't put their foot on the brake, but they did steer the vehicle into a telephone pole, which prevented the bus from going down a very steep incline hill and prevented further injury from the students that were already on the bus.

The older students took care of the younger students. They did as they were trained. We trained them to go out the exit that was open, and the back exit was opened. The older students opened the door and assisted the younger children off the bus. So we're very proud of the heroics of these students on the bus. We're very proud of them.

(END VIDEO CLIP)

HEMMER: At this point, the 14-year-old student has been charged as a juvenile with first-degree murder. Police have the gun used in that killing, but have not said where the boy got that gun -- Soledad.

O'BRIEN: It's time now to take a look at the weather for the day ahead. Chad Myers is at the CNN center for us.

(WEATHER REPORT)

HEMMER: In a moment here, it is tax time. We know that. But should you expect a fat refund or a big, fat bill? Andy is going to...

O'BRIEN: What's a refund?

HEMMER: Yes, we'll check A in that column. Andy is "Minding Your Business." We'll talk to him in a moment here.

O'BRIEN: Also, Martha Stewart's new TV gig is supposed to rehab her image. But one Martha watcher says it could do more harm than good. "90-Second Pop" is ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: Welcome back, everyone. And back to Jack and the "Question of the Day" this morning.

JACK CAFFERTY, CNN ANCHOR: A dire warning from the head of the Federal Reserve. The U.S. is headed towards decades of economic stagnation, according to Alan Greenspan. If Congress doesn't act soon to cut spending on Social Security, Medicare and other government programs, the deficits will balloon ever bigger.

Forget Social Security reform. It isn't going to happen. Polls indicate the public doesn't want it. And that's all Congress needs to hear to say they're not going to do anything until maybe next year. Well, nothing will happen next year either.

Medicare is an even bigger problem. Nothing is being done about that. And hoping the federal government will cut spending in a meaningful way is like expecting pigs to stop eating.

The question this morning is: What's the answer to the country's financial problems? And we're getting a lot of very interesting thoughts, as they say.

Tammy in Midland, Michigan: "There aren't any problems. The Bush plan is right on schedule. You'll either be very, very rich or poor, just like in the old days. Live for now and for me, and later it's someone else's problem." John Michael in Florida: "We need to make changes. The first would be to get the millionaires out of office. We need real folks running for elected office. We need people who truly know how to budget, clip coupons and save money. We need elected officials who won't pass legislation that favors their corporate donors at the expense of the citizens."

Steve in Staten Island writes: "What we have to do is improve the economy in China. This way they can buy more of our stuff. That will solve the trade deficit."

Go back to bed. Pardon me.

Robert in Chicago writes: "Our government spends too (EXPLETIVE DELETED) much money on curing the ills of the world instead of taking care of the home front. If the people in charge could get it through their thick skulls that we don't elect them to heal the universe but rather to make our lives better, we would be ahead of the game."

And David in Japan writes: "Jack, I'm no Andy Serwer, but it seems to me that if I spend more money than I make, eventually I'll wind up living in my parents' basement. It's the job of every politician to explain to guys like me why the same logic doesn't apply to them."

HEMMER: Don't move home. You were saying yesterday during a commercial break, you were giving some dire predictions about the stock market.

CAFFERTY: Well, I don't...

HEMMER: Over-accelerated.

CAFFERTY: I don't know what the stock market is going to do. But there are a lot of things that it seems to me are conspiring to perhaps make this a very difficult year for the stock market.

HEMMER: Such as?

CAFFERTY: The decline in the value of the dollar. The escalation of interest rates. The beginning of the erosion of the real estate market.

ANDY SERWER, "FORTUNE" MAGAZINE: The deficits.

CAFFERTY: Deficits. Declines in corporate earnings on a year- over-year basis. The fact that we haven't done anything meaningful to deal with corporate fraud. How much time do we have?

SERWER: Yes.

HEMMER: That will do it for now on that.

SERWER: Thank you.

HEMMER: Thank you, Jack. O'BRIEN: Jack, thanks.

Well, there is some good news for early tax filers. Here with that and a look at the markets this morning, Andy Serwer is "Minding Your Business."

Hello.

SERWER: Hey, Soledad.

Let's talk about the markets yesterday, that sobering testimony from chief Greenspan that Jack was talking to put a damper on things a little bit. That and higher crude prices sent the Dow down 18 points. The Nasdaq and S&P followed suit.

Today could be kind of a wait-and-see day, because the big jobs report for the month of February comes out on Friday.

I want to talk about Martha Stewart because Jack likes me to talk about Martha Stewart. Take a look at this stock chart here. This stock has gone up twofold since she's been in jail. But look at the tip there. You can see how it's trading down. The stock has been down five days in a row.

And there's a little bit of a lesson here. If investors think, wow, it's a good time to buy her stock, she's getting out of jail, Wall Street already did that. Wall Street already figured it out. The stock has already gone up. In fact, I wouldn't be surprised if the stock trades down a little bit, very dangerous perhaps to get into the stock at this point. I'm not saying it's going to go down precipitously. But a lot of the fact that she's getting out has already been priced into the stock, I would think.

Tax refunds, as Soledad mentioned, good news there. The average filer has gotten $200 more back this year as compared to the previous year. These are early filers obviously. That's a 9 percent increase from 2000, $230, to 2004, $236. Why? Because of tax changes, particularly for lower-income families. The child tax credit taking effect.

And here's an interesting thing, Soledad. For the first time, more than half of American families and individuals will be filing online, electronically.

O'BRIEN: Wow!

SERWER: A big change there.

O'BRIEN: Yes, that is a huge change.

SERWER: Interesting.

O'BRIEN: All right, Andy, thanks.

SERWER: You're welcome. O'BRIEN: Well, Martha Stewart could walk out of prison as early as midnight. What's the very first thing she should do? The 90- second popper have some tips for her in a special edition, up next on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: I like that song. Hey, everybody. Good morning. Just in time for spring, getting sprung. It's a good thing for Martha Stewart and big enough to warrant a special edition of "90-Second Pop".

With us this morning, Andy Borowitz from Borowitzreport.com. "Newsweek's" senior writer, Charles Gasparino. He's covered Stewart's trial, also has written "Blood on the Street" about Wall Street and the duping of investors. And our pop panelist dejure (ph), senior legal analyst Jeff Toobin.

Nice to see you, Jeff.

JEFFERY TOOBIN, CNN SENIOR LEGAL ANALYST: Good morning.

O'BRIEN: All right, let's get right to it. Andy, we're going to start with you. Martha, Martha, Martha. What do you think the first thing she needs to do when she steps out of the walls of prison and goes into her new sort of prison? What do you think she should do first?

ANDY BOROWITZ, BOROWITZREPORT.COM: Well, it's true. She is going to be under house arrest. So she's just kind of trading one gated community for another at this point. But she's -- I guess her first big moment is going to be the cameras waiting outside of prison. And there are going to be a lot of people sort of waiting to see, is this a changed Martha? Is this the same Martha?

I think she should be humble. I think she probably should say that this was a transforming experience. I would avoid saying thins like I'm going to Disneyland, for example. It would be a mistake. So I think that's going to be her first sort of big media moment.

O'BRIEN: Do you think she should -- does it help or not help if she says, you know, I'm not guilty, reiterate that? Or does she say I've learned my lesson?

TOOBIN: I think you move on from the...

CHARLES GASPARINO, SENIOR WRITER, "NEWSWEEK": Forget about this situation.

TOOBIN: I think discussing ImClone stock at this point is probably not what she wants to do. It's all about the future for her, not the past.

O'BRIEN: And it's going to be a big moment. I mean, the bottom line is people want to see what she looks like. The word is that she's lost weight. GASPARINO: She looks pretty great, according to our cover.

O'BRIEN: Yes.

TOOBIN: Yes.

(CROSSTALK)

O'BRIEN: Because, you know, "Newsweek" has gotten a lot of flack for that. That body is not Martha Stewart's body.

GASPARINO: I mean, it looks just like her.

BOROWITZ: I wish "Newsweek" could do that to my body. That's great. This is what I don't understand, so I read that, you know, while she's under arrest, she is hiring the chef from this New York restaurant, Le Cirque, which is a fabulous French restaurant.

GASPARINO: Le Cirque.

BOROWITZ: Le Cirque, well, whatever.

GASPARINO: I'm sorry.

BOROWITZ: But I think it's a...

GASPARINO: (UNINTELLIGIBLE) a few places.

BOROWITZ: I think it's a huge mistake, because whatever they were feeding her in prison has totally agreed with her.

GASPARINO: Right.

O'BRIEN: Oh, exactly. You need mushy oatmeal and bad food to keep that great figure.

BOROWITZ: Yes. She said they cut back on the fat. Didn't she complain about that?

BOROWITZ: She did.

GASPARINO: The food was lousy.

BOROWITZ: She did.

GASPARINO: Actually starvation...

O'BRIEN: The food is always lousy in prison.

(CROSSTALK)

TOOBIN: Tonight on the CNN special we're doing, one of her guests says that, you know, they have these vending machines, and she said, oh, get the chicken in the vending machine. It's really delicious.

(CROSSTALK)

O'BRIEN: Oh. Chicken in the vending machine. Ew!

TOOBIN: Tastes have changed, yes.

O'BRIEN: Let's talk about business. She wants to go back to running her company.

GASPARINO: Right.

O'BRIEN: And there are some issues about that. Also, she set up these TV deals as well.

GASPARINO: Right.

O'BRIEN: What would you advise, Charles, as she steps out of prison?

GASPARINO: Try to run the company. I mean, it's her company. Her name is on it. I mean, she faces a bar from the SEC, although we reported on "Newsweek" that she's trying to get that eliminated. I mean, listen, I think she is the face of the company. The sooner she gets back to running it, being the official CEO, the better it is for the stock.

O'BRIEN: How about TV...

GASPARINO: And the stock has done very well lately.

O'BRIEN: How about the TV deals, you guys? What do think?

GASPARINO: A double-edged sword.

TOOBIN: I think it's, you know...

GASPARINO: Listen, if the nasty Martha, right, that's going to hurt her product. If she's nice on TV, that's going to destroy -- I mean, who wants to watch a nice person on one of these reality shows?

O'BRIEN: You never know.

BOROWITZ: Well, you know, Trump -- I mean, Trump is definitely kind of the boss from hell in a way.

GASPARINO: Right.

BOROWITZ: And Martha fits into that role. It could be good. I was sort of sorry that she didn't, like, go on "Desperate Housewives." Because I think she was, like, the original. She's the uber (ph) desperate housewife.

O'BRIEN: It might be a little too close to home.

BOROWITZ: Maybe a (UNINTELLIGIBLE).

O'BRIEN: Let's talk legal issues, lots of legal challenges. I mean, she's not free and clear, and not just the probation we're talking about.

TOOBIN: Right. I mean, you know, the ankle bracelet will be a big part of her life for the next five months. And I think that's going to be -- you know, what is the etiquette of dealing with an ankle bracelet?

O'BRIEN: Pants all the time.

TOOBIN: Do you wear pants all the time?

O'BRIEN: I thought (UNINTELLIGIBLE).

GASPARINO: It might be very nice with an ankle bracelet.

TOOBIN: Do you ask to see it if you're a friend of hers? Do you say, "Can I see it?" I mean, a lot of people are going to be sort of trying to sneak...

O'BRIEN: That would be tacky.

TOOBIN: ... to see it on her ankle there. But, you know, the legal issues are bad, but they won't preoccupy her that much. They're almost all civil proceedings at this point. I mean, you know, she's got to get her business going again. And that will take care of all of the problems if, you know, the stock goes back up and the ratings are high on her TV show.

O'BRIEN: Her business...

GASPARINO: Unless they bar her from running the business. I mean, the SEC wants to bar her from running the business.

TOOBIN: But, you know, technically they can bar her from being the CEO.

GASPARINO: Right.

TOOBIN: But can't keep her out of being an employee.

GASPARINO: She could be creative director.

O'BRIEN: She'll be creative director and still run it.

GASPARINO: I think she wants to run it.

TOOBIN: Exactly.

O'BRIEN: At the end of the day, it's all about the PR...

TOOBIN: Whose name is on the door?

O'BRIEN: ... and getting back into the business.

GASPARINO: Right.

TOOBIN: Yes. O'BRIEN: And whatever choices she makes. It will be interesting to follow. You guys, thank you very much. Appreciate it.

GASPARINO: Thank you.

O'BRIEN: A lot more on Martha's release. It's going to be tonight on primetime on CNN at 10:00 p.m., the special hour of "PEOPLE IN THE NEWS" that contains some exclusive prison footage and looks at how life behind bars has changed Martha Stewart. Again, that's tonight, 10:00 Eastern, right here on CNN -- Bill.

HEMMER: Let's get a break here. In a moment, top stories are straight ahead. And the Kobe Bryant matter now comes to an end. The NBA star reaching a settlement with his accuser. Was it the right thing to do, though? And why now? Back in a moment here on AMERICAN MORNING.

(COMMERCIAL BREAK)

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