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CNN Live Today

Pumped Up; Fear Factor: Gas Prices; Bankruptcy Overhaul

Aired March 09, 2005 - 11:00   ET

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

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


RICK SANCHEZ, CNN ANCHOR: Here is a look at what is happening right "Now in the News."
Another blast of winter weather slamming the Northeast. This is going on as we speak, folks. The storm dumping as much as 10 inches of snow in parts of Massachusetts, creating a whiteout condition in some areas. Gusty winds, frigid temperatures and icy conditions also causing travel and electrical problems throughout the region. In fact, up and down the East Coast.

The state of Georgia is launching a program that could be a model for protecting the nation's food supply from terrorist attacks. State officials plan to create a network of emergency workers, farmers and veterinarians. They're going to be trained to respond to any agricultural emergency.

Homeland Security Secretary Michael Chertoff is testifying before the Senate committee this hour. He's going to be talking about his department's budget, among other things. Chertoff is also facing questions from senators about issues affecting the security of our country.

City councilman Antonio Villaraigosa takes the top spot in the race for the mayor of Los Angeles. Incumbent James Hahn is locked in a close race for the number two spot, battling former assembly speaker Bob Hertzberg. A runoff between the two top candidates is scheduled for May 17.

A rescue team is in a race to reach four stranded hikers in the Great Smoky Mountains National Park. A park spokesperson told Daryn just about an hour ago that at least one of them is showing signs of hypothermia. As she says, the men were hiking along the Appalachian Trail but were not prepared when the weather turned to rain and then eventually to snow.

It is now 11:00 a.m. on the East Coast, 8:00 a.m. out West. And from the CNN Center in Atlanta, we welcome you back. I'm Rick Sanchez.

DARYN KAGAN, CNN ANCHOR: And good morning once again. I'm Daryn Kagan.

It is enough to drive you to the poor house, if you can afford the gas. Gas prices are taking off like a rocket this week. The national average now just slightly over $2.

By the 4th of July, get ready for this, you could be paying a record national average of up to $2.18 a gallon. President Bush will address the surge of the pump and the drain on your wallet. He'll push his energy policies in Ohio, and he'll do that in a couple of hours.

Let's get started this hour with White House correspondent Dana Bash.

Dana, good morning.

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Good morning, Daryn. And, you know, it is no secret that Americans love their cars. So when gas prices tend to rise, politicians tend to pay attention and tent to talk about it and suggest some ideas for how to fix it.

Now, you mentioned the president is going to Ohio today to talk about energy, and this is a day after the government said that consumers who are already seeing sticker shock at the at pump are going to probably see even higher prices this coming spring. Now, a senior Bush official says that the president in his speech today will say that the economy is improving, but it is those rising gas prices he thinks that are making it harder for families to balance their own budgets.

And he has an answer, and that answer is energy reform, and the idea that he wants to reduce dependence on foreign oil. Now, this is a piece of legislation, Daryn, that the president pushed throughout his entire first term and simply could not get through Congress.

One main reason for that is because it has a provision in it -- or had a provision to drill for oil in the Arctic Refuge. That is something that most Democrats opposed, even some Republicans as well. That is why it hasn't gone very far.

And what Democrats say is that they don't necessarily think the president's plan will reduce dependence on foreign oil. Democratic Senator Chuck Schumer, along with about nine of his colleagues, are sending a letter to the president today saying they think the answer to lowering gas prices and oil prices is to defer regular deliveries to the Strategic Petroleum Reserve.

Now, this comes up pretty much every time we see a rise in gas prices. President Bush has consistently rejected this idea because he says that that reserve is for emergencies, perhaps in the case of a terrorist attack or any other oil shortage, and is not to regulate market prices. They say they even have studies that show it really doesn't work. So there's no sense at this point, Daryn, that the White House is going to change that position.

KAGAN: Let's talk about Ohio, and picking Ohio, a state that the president is familiar with, and perhaps has some amount of gratitude to as well.

BASH: A little bit of gratitude. As you remember, and I'm sure our viewers remember, that was the last state to go for President Bush, and essentially made it possible for him to go over the top and win his second term. It is certainly a state, Daryn, that I spent a lot of time in during the campaign, and -- but it is a state -- or he's going to a place where he can tout his idea not just on oil and gas, but also on what he calls a Clear Skies Initiative, to try, as he says, to reduce air pollution.

KAGAN: Dana Bash live from the White House. Thank you.

BASH: Thank you.

SANCHEZ: Staying with gas prices, sure, they certainly are up. Why? One explanation, fear. Here's CNN's Brian Todd.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice-over): At pump after pump, customers practically choke up as they fill up.

UNIDENTIFIED MALE: It's taking, like, about $40, when it used to take, like, $20.

UNIDENTIFIED FEMALE: That just cost me $55. And a month ago, I think it was $48.

TODD: That's in California, where the price of self-serve regular gas is at about $2.20 a gallon, higher than most places. But gas prices are shooting up everywhere in the U.S., the national average now at just under $2 a gallon for self-serve regular. The U.S. government says prices will hit new record highs this driving season between April and September, a national average of 2.10 a gallon.

LLEWELLYLN KING, "THE ENERGY DAILY": The real problem is that the world oil supply is extraordinarily fragile.

TODD: Fragile not necessarily in volume, say the experts, but in other areas. Refining and shipping capacities stretched thin. Demand from the United States, and lately India and China, going way up. And listen to what a Saudi official and an independent expert volunteered about the terrorism factor.

PETER BERGEN, CNN TERRORISM ANALYST: We are paying some kind of fear premium for the price of oil right now.

UNIDENTIFIED MALE: And that puts a fear premium on crude oil.

TODD: Energy experts say oil markets, like others, are psychologically driven.

KING: I, for example, would suggest, as you notice, every time a pipeline in Iraq is blown up, there's a spike in price. Now, should that move, that kind of violence against oil move, into Saudi Arabia, it would be a very serious problem.

TODD: Saudi Arabia has already been hit. A series of attacks on oil company compounds in 2003 and 2004 killed dozens of foreign workers. Experts believe many refineries are well-secured. The vulnerabilities lie in the pipelines, ports and housing complexes. And there is another threat.

BERGEN: We don't know if al Qaeda has penetrated the Saudi oil business. But it would be kind of surprising if it hadn't, because this is the largest industry in the kingdom. Clearly, bin Laden enjoys a fair amount of support in certain circles.

TODD (on camera): And not even three months ago, bin Laden issued a taped message, urging his followers to continue their attacks on the oil industry. Experts say that's part of al Qaeda's broader strategy to hurt Western economies. And even the possibility of attack is one reason many people will be hurting at the pumps this summer.

Brian Todd, CNN, Washington.

(END VIDEOTAPE)

SANCHEZ: By the way, the Senate looks ready to open a new chapter in the nation's bankruptcy laws. The proposed bill makes it much more difficult for consumers to erase debt. This vote could come late tonight. And by all indications -- let's confirm this now with CNN correspondent Valerie Morris. She's joining us in New York this morning with what this law could mean for you.

By all indications it's going to pass, right?

VALERIE MORRIS, CNN CORRESPONDENT: It seems that way, Rick. And the problems is that if we take a look at the statistics, this hits a lot of people. In 2004, more than 1.5 million Americans filed for bankruptcy, everyday folks like you and me.

These are people struggling, for example, with medical bills, loss of job, things of that nature. And now, basically, this new law that could affect millions is basically saying all of those people are going to have to be responsible for paying at least a portion of what they owe.

SANCHEZ: Spends irresponsibly, gets a credit card and just runs it up and says, "Oh, can't pay for it. You know what? I'm going to declare bankruptcy." Is that who this is really intended for?

MORRIS: No. Let me put a face on this for you.

What would happen to the average person if you had to face some catastrophic medical situation for your family, your insurance could expire very quickly with that drawdown on what is available. People have lost their jobs.

You know, it used to be that a person might be unemployed for three or six months. We see people now who have been unemployed for 18 months or two years.

SANCHEZ: Wow.

MORRIS: Also, you start looking at the safety nets that people have. In financial circles we used to say you need three to six months of money just as a safety net in the event that you lose your job. Now people are saying they need a year, 18 months' worth.

So the reality with these bankruptcy laws that are being proposed -- and this, by the way, Rick, was one of the priorities of the Bush administration for the second term. And Republican lawmakers have long been saying we've got to get a way to control this existing debt.

SANCHEZ: We're hearing some much that the consumer -- the credit card companies were the ones who literally wrote this bill. But let me ask you something, since you were saying the little guy's really going to be affected by this. How about the big guys, the big corporations?

We hear all the time that they declare bankruptcy and they're up and running again later on. Are they going to have to suffer the same burden that the little guy is going to have to suffer?

MORRIS: Wouldn't it be wonderful if the little guy could bounce back like the big guys? No, that's not the case.

You know, and you look at bankruptcy. You have Chapter 7, Chapter 11, Chapter 13. I'm not even going to begin to try to explain those various things to you. It's complicated tax law.

SANCHEZ: Yes.

MORRIS: But the reality is this is applying to the consumer. These are consumers who have had debt. This 1.6 million people in 2004, who has incurred debt because -- sure, there's some people who overspend, there are some people who forget that the first law of having a budget is don't spend more than you make and make sure that you have appropriate savings and what have you. But there are catastrophic things that will happen that drive people into bankruptcy.

And in fact, Rick, recent reports say probably the single reason that people are forced to file bankruptcy, a medical situation in their family.

SANCHEZ: CNN correspondent Valerie Morris joining us to break that down for us. And we certainly appreciate it. Thanks, Valerie.

MORRIS: Sure.

KAGAN: Breaking news out of Iraq, out of Baghdad today. An assassination attempt on a planning minister. This time, though, the target has escaped.

Planning minister Mahdi al-Hasid (ph) was in an upscale neighborhood of Baghdad in Mansour, apparently fired on -- some insurgents fired on his convoy. He, though, has escaped. One bodyguard was killed and two others were wounded. We'll continue to get more out of Baghdad on that story.

Meanwhile, Italian Prime Minister Silvio Berlusconi addresses parliament for the first time since a controversial shooting in Iraq. He says an Italian security agent killed by American troops in Baghdad had authorization from the U.S. military to be in the country. According to The Associated Press, Berlusconi says the car carrying an agent and the just-released journalist stopped immediately when a light was flashed. He says the U.S. is committed to finding out the truth.

Bulgaria says a lack of communication was probably to blame for the death of one of its soldiers in Iraq. Bulgarian officials say the soldier was killed by U.S. troops in a suspected friendly fire incident. Today, the country's army chief said U.S. and Bulgarian forces had not agreed how to communicate with each other and when the soldier was shot.

SANCHEZ: Erasing medical bills, credit cards and other stories that we're going to be following for you. But first of all, we're going to tell you about baseball. Baseball's best may be heading to the nation's capital for hard-hitting testimony. This is going to be a who's who, in fact, in baseball.

KAGAN: And whether they want to or not, apparently.

SANCHEZ: Yes. They're going to have to talk. And a couple of them want to talk, like the guy who's got a book out, the slugger formerly known as Jose Canseco.

Former President Clinton is just a day from surgery, by the way, and that's not stopping him from a round of golf for a good cause. We're going to hear from him in just a moment.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

(COMMERCIAL BREAK)

KAGAN: Well, makes sense, surgery tomorrow, golf today for former President Clinton, if the rain will let up. Clinton and the elder President Bush hope to tee off this morning in south Florida. The tournament should raise close to $2 million for South Asian tsunami victims. The presidents will play on the home course of golf legend Greg Norman.

(BEGIN VIDEO CLIP)

WILLIAM J. CLINTON, FMR. PRESIDENT OF THE UNITED STATES: This is my second attempt to play this course. And the first time I went to the hospital because I fell off Greg's step and tore my quadricep. So as far as I'm concerned, I'm way ahead. At least I get to play before I go to the hospital this time.

(END VIDEO CLIP)

KAGAN: The former presidents will donate their take to AmeriCares and UNICEF.

SANCHEZ: And you probably heard some of the jokes about the energy bunny, or whatever it is... KAGAN: Energizer.

SANCHEZ: The Energizer Bunny Mr. Bush has been calling him. President Clinton returns to a New York hospital tomorrow, nearly six months after his heart bypass surgery. And doctors are going to try and remove that buildup of scar tissue and some fluid from his chest. Mr. Clinton describes the surgery as routine.

Now, as CNN's Kelly Wallace reports, the former president shows few signs of slowing down.

(BEGIN VIDEOTAPE)

KELLY WALLACE, CNN NATIONAL CORRESPONDENT (voice-over): The former rivals reading from the same script. This upcoming surgery is nothing to worry about.

WILLIAM J. CLINTON, FMR. PRESIDENT OF THE UNITED STATES: It's no big deal, and you know, I felt well enough to go to Asia to try to keep up with President Bush.

GEORGE H. W. BUSH, FMR. PRESIDENT OF THE UNITED STATES: You should have seen him going, town to town, country to country, Energizer Bunny here, he killed me, but...

WALLACE: Even 43 joined in, noting how 41 and 42 would be playing golf today to raise money for tsunami victims.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: It goes to show how sick he is.

WALLACE: And that's the message Bill Clinton has been trying to send ever since his quadruple-bypass in early September. Just seven weeks later, he was on the road, turning out thousands in Philadelphia for Democrat John Kerry.

CLINTON: If this isn't good for my heart, I don't know what is. Thank you.

WALLACE: He looked thinner, frail, older.

But just three weeks later, he was on the road again, for the rain-soaked dedication of his new library in Little Rock.

CLINTON: If my beloved mother were here, she would remind me that rain is liquid sunshine, and that I shouldn't complain about this.

WALLACE: In early January, he teamed up with the former president to lead a tsunami fund-raising drive. The two making the rounds on television...

CLINTON: He's in better shape than I am. I'm having heart surgery. He's jumping out of airplanes.

WALLACE: ... before leaving last month to tour areas devastated by the tsunami.

During that trip, Wolf Blitzer asked Mr. Clinton how he was feeling.

BLITZER: I feel great. I confess, you know, it was tiring.

WALLACE: And so many are asking, did all the travel and all the activity contribute in even the slightest way to his current condition?

DR. ALLAN SCHWARTZ, SURGEON: The short answer is no, that it's not -- this type of complication, is not known to be related to activity in any way.

WALLACE (on camera): In fact, the former president's doctors diagnosed his condition before that trip to Asia. After his surgery, he's expected to resume his work without limitations, and his exercise, which currently consists of walking four miles a day.

Kelly Wallace, CNN, New York.

(END VIDEOTAPE)

SANCHEZ: Well, the presidents should be grateful that they're in Florida and not in...

KAGAN: The Northeast. It's a lot worse up there. They're getting socked with bad weather again. Ahead, a live update on the winter storms and the national weather outlook.

(COMMERCIAL BREAK)

(WEATHER REPORT)

SANCHEZ: It is neck and neck in the mayor's race in Los Angeles, especially for second place. But either way, it does look like it's going to be a runoff. And we're going to get the very latest on this race for you.

Coming right back.

(COMMERCIAL BREAK)

KAGAN: We are coming up on the half-hour. I'm Daryn Kagan.

SANCHEZ: And I'm Rick Sanchez. And here's what's happening right "Now in the News."

Let's start with the presidential commission preparing to tell President Bush that U.S. intelligence on Iran and North Korea simply is not, not good enough. "The New York Times" says one person describes the poor intelligence on Iran as scandalous. President Bush charges Iran in trying to develop nuclear weapons. The U.S. does believe that North Korea already has several nuclear weapons.

Congressional subpoenas reportedly may go out today to several big names in Major League Baseball: Jose Canseco, Mark McGwire, Jason Giambi, Sammy Sosa, like a who's who list of baseball sluggers. They're all on the witness list as Congress investigates the steroid scandal.

A Houston toddler survives for one day or two on syrup and onions. His caretaker passed away apparently of natural causes. Relatives found the 2-year-old boy when they came to the home to check on the woman.

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 March 9, 2005 - 11:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
RICK SANCHEZ, CNN ANCHOR: Here is a look at what is happening right "Now in the News."
Another blast of winter weather slamming the Northeast. This is going on as we speak, folks. The storm dumping as much as 10 inches of snow in parts of Massachusetts, creating a whiteout condition in some areas. Gusty winds, frigid temperatures and icy conditions also causing travel and electrical problems throughout the region. In fact, up and down the East Coast.

The state of Georgia is launching a program that could be a model for protecting the nation's food supply from terrorist attacks. State officials plan to create a network of emergency workers, farmers and veterinarians. They're going to be trained to respond to any agricultural emergency.

Homeland Security Secretary Michael Chertoff is testifying before the Senate committee this hour. He's going to be talking about his department's budget, among other things. Chertoff is also facing questions from senators about issues affecting the security of our country.

City councilman Antonio Villaraigosa takes the top spot in the race for the mayor of Los Angeles. Incumbent James Hahn is locked in a close race for the number two spot, battling former assembly speaker Bob Hertzberg. A runoff between the two top candidates is scheduled for May 17.

A rescue team is in a race to reach four stranded hikers in the Great Smoky Mountains National Park. A park spokesperson told Daryn just about an hour ago that at least one of them is showing signs of hypothermia. As she says, the men were hiking along the Appalachian Trail but were not prepared when the weather turned to rain and then eventually to snow.

It is now 11:00 a.m. on the East Coast, 8:00 a.m. out West. And from the CNN Center in Atlanta, we welcome you back. I'm Rick Sanchez.

DARYN KAGAN, CNN ANCHOR: And good morning once again. I'm Daryn Kagan.

It is enough to drive you to the poor house, if you can afford the gas. Gas prices are taking off like a rocket this week. The national average now just slightly over $2.

By the 4th of July, get ready for this, you could be paying a record national average of up to $2.18 a gallon. President Bush will address the surge of the pump and the drain on your wallet. He'll push his energy policies in Ohio, and he'll do that in a couple of hours.

Let's get started this hour with White House correspondent Dana Bash.

Dana, good morning.

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Good morning, Daryn. And, you know, it is no secret that Americans love their cars. So when gas prices tend to rise, politicians tend to pay attention and tent to talk about it and suggest some ideas for how to fix it.

Now, you mentioned the president is going to Ohio today to talk about energy, and this is a day after the government said that consumers who are already seeing sticker shock at the at pump are going to probably see even higher prices this coming spring. Now, a senior Bush official says that the president in his speech today will say that the economy is improving, but it is those rising gas prices he thinks that are making it harder for families to balance their own budgets.

And he has an answer, and that answer is energy reform, and the idea that he wants to reduce dependence on foreign oil. Now, this is a piece of legislation, Daryn, that the president pushed throughout his entire first term and simply could not get through Congress.

One main reason for that is because it has a provision in it -- or had a provision to drill for oil in the Arctic Refuge. That is something that most Democrats opposed, even some Republicans as well. That is why it hasn't gone very far.

And what Democrats say is that they don't necessarily think the president's plan will reduce dependence on foreign oil. Democratic Senator Chuck Schumer, along with about nine of his colleagues, are sending a letter to the president today saying they think the answer to lowering gas prices and oil prices is to defer regular deliveries to the Strategic Petroleum Reserve.

Now, this comes up pretty much every time we see a rise in gas prices. President Bush has consistently rejected this idea because he says that that reserve is for emergencies, perhaps in the case of a terrorist attack or any other oil shortage, and is not to regulate market prices. They say they even have studies that show it really doesn't work. So there's no sense at this point, Daryn, that the White House is going to change that position.

KAGAN: Let's talk about Ohio, and picking Ohio, a state that the president is familiar with, and perhaps has some amount of gratitude to as well.

BASH: A little bit of gratitude. As you remember, and I'm sure our viewers remember, that was the last state to go for President Bush, and essentially made it possible for him to go over the top and win his second term. It is certainly a state, Daryn, that I spent a lot of time in during the campaign, and -- but it is a state -- or he's going to a place where he can tout his idea not just on oil and gas, but also on what he calls a Clear Skies Initiative, to try, as he says, to reduce air pollution.

KAGAN: Dana Bash live from the White House. Thank you.

BASH: Thank you.

SANCHEZ: Staying with gas prices, sure, they certainly are up. Why? One explanation, fear. Here's CNN's Brian Todd.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice-over): At pump after pump, customers practically choke up as they fill up.

UNIDENTIFIED MALE: It's taking, like, about $40, when it used to take, like, $20.

UNIDENTIFIED FEMALE: That just cost me $55. And a month ago, I think it was $48.

TODD: That's in California, where the price of self-serve regular gas is at about $2.20 a gallon, higher than most places. But gas prices are shooting up everywhere in the U.S., the national average now at just under $2 a gallon for self-serve regular. The U.S. government says prices will hit new record highs this driving season between April and September, a national average of 2.10 a gallon.

LLEWELLYLN KING, "THE ENERGY DAILY": The real problem is that the world oil supply is extraordinarily fragile.

TODD: Fragile not necessarily in volume, say the experts, but in other areas. Refining and shipping capacities stretched thin. Demand from the United States, and lately India and China, going way up. And listen to what a Saudi official and an independent expert volunteered about the terrorism factor.

PETER BERGEN, CNN TERRORISM ANALYST: We are paying some kind of fear premium for the price of oil right now.

UNIDENTIFIED MALE: And that puts a fear premium on crude oil.

TODD: Energy experts say oil markets, like others, are psychologically driven.

KING: I, for example, would suggest, as you notice, every time a pipeline in Iraq is blown up, there's a spike in price. Now, should that move, that kind of violence against oil move, into Saudi Arabia, it would be a very serious problem.

TODD: Saudi Arabia has already been hit. A series of attacks on oil company compounds in 2003 and 2004 killed dozens of foreign workers. Experts believe many refineries are well-secured. The vulnerabilities lie in the pipelines, ports and housing complexes. And there is another threat.

BERGEN: We don't know if al Qaeda has penetrated the Saudi oil business. But it would be kind of surprising if it hadn't, because this is the largest industry in the kingdom. Clearly, bin Laden enjoys a fair amount of support in certain circles.

TODD (on camera): And not even three months ago, bin Laden issued a taped message, urging his followers to continue their attacks on the oil industry. Experts say that's part of al Qaeda's broader strategy to hurt Western economies. And even the possibility of attack is one reason many people will be hurting at the pumps this summer.

Brian Todd, CNN, Washington.

(END VIDEOTAPE)

SANCHEZ: By the way, the Senate looks ready to open a new chapter in the nation's bankruptcy laws. The proposed bill makes it much more difficult for consumers to erase debt. This vote could come late tonight. And by all indications -- let's confirm this now with CNN correspondent Valerie Morris. She's joining us in New York this morning with what this law could mean for you.

By all indications it's going to pass, right?

VALERIE MORRIS, CNN CORRESPONDENT: It seems that way, Rick. And the problems is that if we take a look at the statistics, this hits a lot of people. In 2004, more than 1.5 million Americans filed for bankruptcy, everyday folks like you and me.

These are people struggling, for example, with medical bills, loss of job, things of that nature. And now, basically, this new law that could affect millions is basically saying all of those people are going to have to be responsible for paying at least a portion of what they owe.

SANCHEZ: Spends irresponsibly, gets a credit card and just runs it up and says, "Oh, can't pay for it. You know what? I'm going to declare bankruptcy." Is that who this is really intended for?

MORRIS: No. Let me put a face on this for you.

What would happen to the average person if you had to face some catastrophic medical situation for your family, your insurance could expire very quickly with that drawdown on what is available. People have lost their jobs.

You know, it used to be that a person might be unemployed for three or six months. We see people now who have been unemployed for 18 months or two years.

SANCHEZ: Wow.

MORRIS: Also, you start looking at the safety nets that people have. In financial circles we used to say you need three to six months of money just as a safety net in the event that you lose your job. Now people are saying they need a year, 18 months' worth.

So the reality with these bankruptcy laws that are being proposed -- and this, by the way, Rick, was one of the priorities of the Bush administration for the second term. And Republican lawmakers have long been saying we've got to get a way to control this existing debt.

SANCHEZ: We're hearing some much that the consumer -- the credit card companies were the ones who literally wrote this bill. But let me ask you something, since you were saying the little guy's really going to be affected by this. How about the big guys, the big corporations?

We hear all the time that they declare bankruptcy and they're up and running again later on. Are they going to have to suffer the same burden that the little guy is going to have to suffer?

MORRIS: Wouldn't it be wonderful if the little guy could bounce back like the big guys? No, that's not the case.

You know, and you look at bankruptcy. You have Chapter 7, Chapter 11, Chapter 13. I'm not even going to begin to try to explain those various things to you. It's complicated tax law.

SANCHEZ: Yes.

MORRIS: But the reality is this is applying to the consumer. These are consumers who have had debt. This 1.6 million people in 2004, who has incurred debt because -- sure, there's some people who overspend, there are some people who forget that the first law of having a budget is don't spend more than you make and make sure that you have appropriate savings and what have you. But there are catastrophic things that will happen that drive people into bankruptcy.

And in fact, Rick, recent reports say probably the single reason that people are forced to file bankruptcy, a medical situation in their family.

SANCHEZ: CNN correspondent Valerie Morris joining us to break that down for us. And we certainly appreciate it. Thanks, Valerie.

MORRIS: Sure.

KAGAN: Breaking news out of Iraq, out of Baghdad today. An assassination attempt on a planning minister. This time, though, the target has escaped.

Planning minister Mahdi al-Hasid (ph) was in an upscale neighborhood of Baghdad in Mansour, apparently fired on -- some insurgents fired on his convoy. He, though, has escaped. One bodyguard was killed and two others were wounded. We'll continue to get more out of Baghdad on that story.

Meanwhile, Italian Prime Minister Silvio Berlusconi addresses parliament for the first time since a controversial shooting in Iraq. He says an Italian security agent killed by American troops in Baghdad had authorization from the U.S. military to be in the country. According to The Associated Press, Berlusconi says the car carrying an agent and the just-released journalist stopped immediately when a light was flashed. He says the U.S. is committed to finding out the truth.

Bulgaria says a lack of communication was probably to blame for the death of one of its soldiers in Iraq. Bulgarian officials say the soldier was killed by U.S. troops in a suspected friendly fire incident. Today, the country's army chief said U.S. and Bulgarian forces had not agreed how to communicate with each other and when the soldier was shot.

SANCHEZ: Erasing medical bills, credit cards and other stories that we're going to be following for you. But first of all, we're going to tell you about baseball. Baseball's best may be heading to the nation's capital for hard-hitting testimony. This is going to be a who's who, in fact, in baseball.

KAGAN: And whether they want to or not, apparently.

SANCHEZ: Yes. They're going to have to talk. And a couple of them want to talk, like the guy who's got a book out, the slugger formerly known as Jose Canseco.

Former President Clinton is just a day from surgery, by the way, and that's not stopping him from a round of golf for a good cause. We're going to hear from him in just a moment.

(COMMERCIAL BREAK)

(STOCK MARKET REPORT)

(COMMERCIAL BREAK)

KAGAN: Well, makes sense, surgery tomorrow, golf today for former President Clinton, if the rain will let up. Clinton and the elder President Bush hope to tee off this morning in south Florida. The tournament should raise close to $2 million for South Asian tsunami victims. The presidents will play on the home course of golf legend Greg Norman.

(BEGIN VIDEO CLIP)

WILLIAM J. CLINTON, FMR. PRESIDENT OF THE UNITED STATES: This is my second attempt to play this course. And the first time I went to the hospital because I fell off Greg's step and tore my quadricep. So as far as I'm concerned, I'm way ahead. At least I get to play before I go to the hospital this time.

(END VIDEO CLIP)

KAGAN: The former presidents will donate their take to AmeriCares and UNICEF.

SANCHEZ: And you probably heard some of the jokes about the energy bunny, or whatever it is... KAGAN: Energizer.

SANCHEZ: The Energizer Bunny Mr. Bush has been calling him. President Clinton returns to a New York hospital tomorrow, nearly six months after his heart bypass surgery. And doctors are going to try and remove that buildup of scar tissue and some fluid from his chest. Mr. Clinton describes the surgery as routine.

Now, as CNN's Kelly Wallace reports, the former president shows few signs of slowing down.

(BEGIN VIDEOTAPE)

KELLY WALLACE, CNN NATIONAL CORRESPONDENT (voice-over): The former rivals reading from the same script. This upcoming surgery is nothing to worry about.

WILLIAM J. CLINTON, FMR. PRESIDENT OF THE UNITED STATES: It's no big deal, and you know, I felt well enough to go to Asia to try to keep up with President Bush.

GEORGE H. W. BUSH, FMR. PRESIDENT OF THE UNITED STATES: You should have seen him going, town to town, country to country, Energizer Bunny here, he killed me, but...

WALLACE: Even 43 joined in, noting how 41 and 42 would be playing golf today to raise money for tsunami victims.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: It goes to show how sick he is.

WALLACE: And that's the message Bill Clinton has been trying to send ever since his quadruple-bypass in early September. Just seven weeks later, he was on the road, turning out thousands in Philadelphia for Democrat John Kerry.

CLINTON: If this isn't good for my heart, I don't know what is. Thank you.

WALLACE: He looked thinner, frail, older.

But just three weeks later, he was on the road again, for the rain-soaked dedication of his new library in Little Rock.

CLINTON: If my beloved mother were here, she would remind me that rain is liquid sunshine, and that I shouldn't complain about this.

WALLACE: In early January, he teamed up with the former president to lead a tsunami fund-raising drive. The two making the rounds on television...

CLINTON: He's in better shape than I am. I'm having heart surgery. He's jumping out of airplanes.

WALLACE: ... before leaving last month to tour areas devastated by the tsunami.

During that trip, Wolf Blitzer asked Mr. Clinton how he was feeling.

BLITZER: I feel great. I confess, you know, it was tiring.

WALLACE: And so many are asking, did all the travel and all the activity contribute in even the slightest way to his current condition?

DR. ALLAN SCHWARTZ, SURGEON: The short answer is no, that it's not -- this type of complication, is not known to be related to activity in any way.

WALLACE (on camera): In fact, the former president's doctors diagnosed his condition before that trip to Asia. After his surgery, he's expected to resume his work without limitations, and his exercise, which currently consists of walking four miles a day.

Kelly Wallace, CNN, New York.

(END VIDEOTAPE)

SANCHEZ: Well, the presidents should be grateful that they're in Florida and not in...

KAGAN: The Northeast. It's a lot worse up there. They're getting socked with bad weather again. Ahead, a live update on the winter storms and the national weather outlook.

(COMMERCIAL BREAK)

(WEATHER REPORT)

SANCHEZ: It is neck and neck in the mayor's race in Los Angeles, especially for second place. But either way, it does look like it's going to be a runoff. And we're going to get the very latest on this race for you.

Coming right back.

(COMMERCIAL BREAK)

KAGAN: We are coming up on the half-hour. I'm Daryn Kagan.

SANCHEZ: And I'm Rick Sanchez. And here's what's happening right "Now in the News."

Let's start with the presidential commission preparing to tell President Bush that U.S. intelligence on Iran and North Korea simply is not, not good enough. "The New York Times" says one person describes the poor intelligence on Iran as scandalous. President Bush charges Iran in trying to develop nuclear weapons. The U.S. does believe that North Korea already has several nuclear weapons.

Congressional subpoenas reportedly may go out today to several big names in Major League Baseball: Jose Canseco, Mark McGwire, Jason Giambi, Sammy Sosa, like a who's who list of baseball sluggers. They're all on the witness list as Congress investigates the steroid scandal.

A Houston toddler survives for one day or two on syrup and onions. His caretaker passed away apparently of natural causes. Relatives found the 2-year-old boy when they came to the home to check on the woman.

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