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American Morning

President Bush Avoids Bitter Veto Battle; More Deadly Bombings in Iraq

Aired March 10, 2006 - 08:00   ET

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

MILES O'BRIEN, CNN CORRESPONDENT: Good morning.
I'm Miles O'Brien.

SOLEDAD O'BRIEN, CNN ANCHOR: And I'm Soledad O'Brien.

President Bush avoids a bitter veto battle thanks to a last minute switch in the ports deal. But the deal's death may only offer temporary relief. We'll explain ahead.

M. O'BRIEN: More deadly bombings in Iraq this morning. The military again becoming the target for insurgent attacks.

S. O'BRIEN: And Kenyans put in a terrible, desperate situation. They are forced to do whatever they can even for just a drop of dirty water.

M. O'BRIEN: And speaking of water, a big discovery in outer space. A precious resource spotted on a distant moon. It is a key ingredient for life.

S. O'BRIEN: And don't fugged about it (ph). "Sopranos" season six on tap in "A.M. Pop." We'll tell you about that, as well, all ahead on AMERICAN MORNING.

We begin this morning with a CNN Security Watch.

President Bush may have caught a little bit of a break with that change in direction of the ports deal. But Dubai's withdrawal from the deal may only have opened the door for more political battles.

AMERICAN MORNING'S Bob Franken live for us from Washington, D.C. -- first and foremost, Bob, good morning.

Is the deal dead?

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Who knows?

S. O'BRIEN: OK.

FRANKEN: Well, Dubai Ports put out a very, very carefully parsed statement yesterday, transferring, they said it promised -- the DPW promised it would transfer, that's the word -- to a U.S. entity the control of the ports operations that the Dubai-based company was going to take over. Did not say, did not use the word "sell," did not define what a U.S. entity is supposed to be. There is no idea if there is a U.S. company that is interested in buying it under this circumstance. And DPW, the Dubai Ports World people, were very careful to say the that they were not going to take an economic loss on this.

So there are a lot of huge loopholes to drive through if they want to.

S. O'BRIEN: What exactly does transfer potentially really mean?

Let's talk politically then.

What do you think happens politically?

FRANKEN: Well, a couple of things have happened. There was a momentum that had built that was going to create what was just about a catastrophe for the Bush administration. He was going to force a veto if he -- he had promised to have a veto. The Congress was ignoring that. It was clear that Congress would override a veto because so many Republicans were coming out against the purchase by the Dubai- based company.

So this at least stops that for the moment.

However, the Democrats in particular are not going to let this be forgotten. They're looking at this very closely and have not promised to abandon their efforts to have congressional action, which might raise that question again about a veto.

S. O'BRIEN: In other words, it ain't over.

FRANKEN: It's not...

S. O'BRIEN: Bob Franken...

FRANKEN: It's not over, no.

S. O'BRIEN: We'll be talking about this some more.

Bob Franken for us this morning.

Bob, thanks, as always.

In fact, "Time" magazine is reporting this morning that one of the companies that's under consideration as a U.S. partner for Dubai Ports World is Kellogg, Brown and Root. KBR, you'll recall, is a subsidiary of Halliburton, which, of course, is the company that was formerly headed by Vice President Dick Cheney.

Now, KBR is already partnered with a company, ISS, that provides security for U.S. Navy ships at ports in the Middle East. ISS is owned by the government of the United Arab Emirates. A little circle there.

You want to stay with CNN, of course, day and night for the most reliable news about your security.

Lots of other stories to tell you about this morning.

Carol has got those -- good morning, Carol.

CAROL COSTELLO, CNN ANCHOR: Good morning, Soledad.

Good morning to all of you.

A car bombing on the outskirts of Baghdad. Incredible images. Crunched metal is all that remains of a car. The attack was one of a series of bombings throughout Iraq. There you see it. At least nine people killed in this incident.

Also, these pictures of what appear to be a U.S. tank on fire. The U.S. military is now looking into it. We don't have word on any injuries just yet. Of course, when we find out more information, we'll pass it along.

One hour from now in Atlanta there will be prayers and songs to remember the victims of last year's courthouse shooting. Four people were killed during a rampage when an accused rapist escaped. It happened on March 11. The memorial is today because the court is closed on Saturday. Brian Nichols will be tried for murder in October in the very same courthouse. He faces the death penalty.

Not worth the hassle -- that's what some states are saying about nearly $2 billion in Katrina disaster relief. Congress approved the funds six month ago, but the Health and Human Services Department says so far it's gotten requests for only a fraction of it. Some states say they don't want the bureaucratic hassle. They don't even know if displaced families qualify for help.

It could be a sign of potential life on one of Saturn's moons. Images taken by the Cassini spacecraft show evidence of geysers, possibly like the ones in Yellowstone. Only these are frozen geysers. That means it's strong evidence that one of the moons could have water. One scientist calls the images the smoking gun.

And near Detroit, a terrifying case of what can only be called extreme road rage. Two pregnant women pushed in their car by another car. Listen to the 911 call.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Officer! Oh, my god!

UNIDENTIFIED FEMALE: Ma'am, what's going on?

UNIDENTIFIED FEMALE: He's pushing our car.

UNIDENTIFIED FEMALE: OK. I understand.

UNIDENTIFIED FEMALE: Oh, my god!

(END VIDEO CLIP)

COSTELLO: Video from a police dashboard camera actually shows smoke from the suspect's tires. The man driving the other car has been detained. No word on exactly why he would do that. Both women are doing fine and, you know, their babies are doing fine, as well -- Miles.

M. O'BRIEN: Glad to hear that.

Thank you very much, Carol.

In the South this morning, they're cleaning up after fierce winds and hail, some the size of baseballs. Trees and power lines knocked down in parts of Arkansas. Tornadoes spotted there, high winds, gusts up to 70 miles an hour. A fire sparked by lightning killed a man. That baseball sized hail reported in southern Oklahoma, as well. A tornado damaged an elementary school in Indianola, Mississippi. No one injured in that event.

Chad Myers was telling us all about this just about 24 hours ago.

A little quieter weather map today.

CHAD MYERS, CNN METEOROLOGIST: Yes, much nicer today.

The energy from that storm will have really run offshore by later on today.

(WEATHER REPORT)

M. O'BRIEN: Drought on the Horn of Africa is what we're talking about now. It's now so severe that more than a billion people have no clean drinking water. Relief agencies say food must be brought to Kenya immediately.

Jeff Koinange now on how the drought has brought Kenya to the brink of starvation and economic collapse.

(BEGIN VIDEO TAPE)

JEFF KOINANGE, CNN CORRESPONDENT (voice-over): Salat Ousman is trying to revive his favorite camel, dying of thirst in a drought stricken land where camels, the so-called ships of the desert, are legendary for going a long time without water and outliving just about everything and everyone. His entire cattle stock of more than 100 cows, sheep, goats and camels has been depleted to less than 30 by a fourth straight season of no rains that's hit this region of northern Kenya with a biblical vengeance.

And it's not just his dying camel that's giving him sleepless nights. It's seeing his entire livelihood disappear.

"What future is there if my animals are dying like flies?" he asks. "What's next? My children? My family?"

Ousman lives here, in this makeshift shelter made of twigs and branches. He, like most of his tribesmen, are nomads, moving from place to place even in the best of times, seeking greener pastures. This year their roaming is a desperate search for one of life's necessities -- water.

(on camera): I'm standing on the edge of what was once a watering hole for thousands of livestock. Now, most of the animals are gone and the little water that's left these locals here are literally digging deep into the riverbed to come up with the dirty water. And all of it is for personal consumption.

(voice-over): Mariam Hassan (ph) doesn't mind that the water is brown and dirty. She's just happy she can get a few drops. She says she'll use the water for everything from drinking to cooking to bathing her four young children. Even dirty water, she says, is better than not having any water at all.

The arrival of a water truck sets off a mad scramble -- every man, woman and child for themselves. Here, water is a much more precious commodity than even free food.

Still, they scramble to fill their plastic jerry cans and feed their thirsty animals.

Salat Ousman, his wife Ebla (ph) and their five children have made the seven kilometer trek from their hut. Ousman chats with the other men as Ebla waits in line.

When it's her turn, she gets the monthly rations of corn, soya blend from the U.S. rice from Japan and beans and vegetable oil courtesy of the Kenyan government. They gather their stock and trek back home to care for their dying herds and themselves.

Ebla prepares a quick meal of rice and beans, which she serves to her hungry family, before she feeds 9-month-old Saleem (ph) and finally herself. But even as the children hungrily take to the feast before them, the elder Ousman seems to have other things on his mind. His favorite camel has become the latest victim of this drought that seems to have no end.

Jeff Koinange, CNN, Garissa, in northern Kenya.

(END VIDEO TAPE)

M. O'BRIEN: You know, next time you're thinking about complaining about the way your latte was made at Starbucks, I want you to talk about that piece.

S. O'BRIEN: Right.

M. O'BRIEN: More than a million people...

S. O'BRIEN: A brutal situation.

M. O'BRIEN: ... are starving in Somalia, as well. Aid agencies are not only fighting a funding shortage there, but the difficulty of getting people help in the middle of war zones.

S. O'BRIEN: Oh, that's just a terrible story. It's really awful. Ahead this morning as we continue on AMERICAN MORNING, police in New York have found -- a follow-up on a story we told you yesterday of that so-called missing text message girl.

Remember we told you her story?

They've got big questions for her. We'll get into that this morning.

And, also, the Reverend Franklin Graham is going to join us live. He and his father are in the Gulf Coast this week. We're going to see whether he thinks things are improving there.

M. O'BRIEN: And the government says the bird flu could hit the U.S. in a matter of months.

How likely is that?

We'll talk to an expert on birds next.

(COMMERCIAL BREAK)

M. O'BRIEN: The Homeland Security secretary, Michael Chertoff, yesterday out with a warning, saying it's just a matter of time, and maybe not before too long, before the bird flu makes its way to the shores of the continental United States.

Listen to the secretary.

(BEGIN VIDEO CLIP)

MICHAEL CHERTOFF, HOMELAND SECURITY SECRETARY: We should be prepared for the possibility that at some point in the next few months, a wild fowl will come over the migratory pathway and will be infected with H5N1.

(END VIDEO CLIP)

M. O'BRIEN: Will it come that way? Will it be a wild fowl migrating?

Joining us from Washington now to talk a little bit about this is Peter Marra.

He is a bird ecologist with the Smithsonian Migratory Bird Center at the National Zoo.

Mr. Marra, good to have you with us.

PETER MARRA, BIRD ECOLOGIST, SMITHSONIAN MIGRATORY BIRD CENTER: Thanks for having me, Miles.

M. O'BRIEN: All right.

MARRA: Good morning. M. O'BRIEN: First, I want to show -- put a map up on the screen and give people a sense of where bird flu has been located in birds and what sorts of birds they were found in.

If you look at this screen, everything that is in orange here means that it is bird flu that has come from poultry. Check out these yellow locations. That indicates that it is the result of a migratory bird, a wild bird making its way there.

As we look at the next map, I just want to give people a sense of these migratory patterns. They can extend for hundreds and hundreds of miles. A lot of lines on this map. But basically what we're talking about, inside each of lines is kind of a zone of migration. And, as you can see, when you start putting this all together, the world is a very small place, indeed.

Mr. Marra, what is -- what is the likelihood that migratory birds will be the way that the bird flu comes to the U.S.?

MARRA: Well, it's a very difficult question to answer. There are going to be, you know, millions and millions of migratory birds heading north in the coming months, not just from Southeast Asia to Siberia and into Alaska, but also from the Caribbean, Central America, into places in North America to breed.

H5N1 and how it moves is a very, very complex situation and it's not clear how easy it is for birds to actually move the virus itself.

So it's a very difficult thing to actually predict.

But is it likely?

Yes, it is likely. But it's hard to say where it'll occur and what'll happen once it gets there or even the species of birds that it will actually be in.

M. O'BRIEN: Let me ask you this. What is the bigger risk? Is it the migratory patterns, is it the wild birds or is it the trade of domesticated poultry?

MARRA: Well, it's not just the migratory birds, like you say, and it's not just the trade in domesticated poultry. It's also the illegal movement of pets. All those things are possible pathways and all three things have been responsible for the movement of H5N1 in the outbreaks that we've seen in Asia and in Europe.

So we need to be prepared for all three of these things.

The point that I think is important to remember is that we can do something about the movement of poultry. In fact, just last Friday, Canada put a halt on all imports of poultry from France. They were one of the countries that actually imported large amounts of poultry from H5N1 countries.

The U.S. does not import poultry, but countries to our south do import poultry from other places. And what we need to be careful about is that we educate these other countries and that we tell them to sort of put a halt on those importations.

M. O'BRIEN: So, in other words, you're saying it's time to really stop the import and export of poultry wherever possible?

MARRA: That's exactly right. That's exactly right. That's something we can control. We can't control the movement of migratory birds, which, inevitably, will probably move H5N1.

M. O'BRIEN: And when you talk about the way these birds are affected, migratory birds, are they getting it from poultry? Is there much spread between the wild birds and the domesticated poultry?

MARRA: Well, it appears as though there is some spread between poultry farms and wild birds. But it's not clear how it's happened. We just don't understand that. But that's one of the things that we can do. We can minimize the interaction between wild birds and poultry farms.

In the U.S. the poultry industry has really stepped up its level of awareness and security and most of the poultry farms are supposedly supposed to be biosecure in that regard.

M. O'BRIEN: When you -- how do you make a poultry farm biosecure? We've heard so many stories about in other countries people who are on poultry farms being exposed to the bird flu, being so susceptible to it?

MARRA: Yes, I think -- I think we're just seeing a different culture here. In the U.S. most poultry farms are trying to keep out all wild birds. And when you do that, you're excluding any external influence or any external possibility that a virus is going to come in via migratory birds.

And in a lot of the situations in Asia, what you're seeing is a lot more interaction between people and their animals. And that's part of the problem.

So even when H5N1 does come through migratory birds, my guess is, is that we'll be able to contain it more easily in terms of how it might impact domestic poultry.

M. O'BRIEN: Let's hope that's true.

Thank you, Peter Marra.

He's a bird ecologist at Washington's National Zoo.

Good information -- Soledad.

S. O'BRIEN: Well, ahead this morning, we're going to ask the question what's the key to wealth?

Our next guess says it's all about real estate. We're going to talk to the author of "The Automatic Millionaire."

And then in "A.M. Pop," we'll get a sneak peak at the "Sopranos" Sunday night premier. One of the show's stars, Michael Imperioli, is going to join us live in our studio.

That's just ahead.

Stay with us.

(COMMERCIAL BREAK)

S. O'BRIEN: The road to future wealth begins at home. Or maybe in your home.

Personal finance guru David Bach says there's a simple solution for getting rich in real estate.

His new book is called "The Automatic Millionaire Homeowner."

David is with us this morning.

Nice to have you back.

Thanks for talking with us.

DAVID BACH, "THE AUTOMATIC MILLIONAIRE HOMEOWNER": Soledad, great to be back.

S. O'BRIEN: Thank you very much.

Listen, you -- why is it better to own than to rent?

BACH: It's really very simple. It's hard to hear, but it's very simple. Where you live can make you rich or where you live can make you poor. The average renter today in America is worth less than $5,000. The average homeowner...

S. O'BRIEN: Is worth -- their total net worth is $5,000?

BACH: Total net worth is less than $5,000. The average homeowner is worth over $172,000. So the average homeowner in America is worth 34 times more than renters. And that number keeps growing. So what's happening is we're seeing a separation between the rich and poor. The longer you rent, the harder it is for you to catch up.

S. O'BRIEN: And, of course, that's going to be skewed because some of the homeowners are going to be older and more established. Some of the renters are going to be your 20 year olds who are getting their first job. But, for the most part, you're pointing out to a big difference there.

A lot of people, I think, think I'd love to buy a house.

BACH: Right.

S. O'BRIEN: But, you know what? I don't have the money for the huge down payment.

BACH: Yes, this is one of the huge myths out there, is that you need a big down payment. You used to, Soledad. Things have really changed. Here's the...

S. O'BRIEN: Twenty percent, right?

BACH: It used to be 20, 25 percent, sometimes even more than that. Not anymore. Last year, 43 percent of first time homebuyers bought a home with no money down. Now, that's not an infomercial talking, that's the new way the banking laws work. The banks have changed the way they loan money. They've made it easier for first time homebuyers to get a mortgage.

So if you're watching this and you're renting, what I'd tell you to do is this. Go down to a bank and meet with them and say listen, I'm a first time homebuyer, I want to buy a home, will you run my credit score and let me know if you would loan me the money to buy that home?

S. O'BRIEN: Ah. And then you get to the second part, which is the credit score. There are many people who would say well I'd love to -- I'd love to buy a house or buy an apartment, but my credit score is not fabulous.

BACH: Is bad, right.

S. O'BRIEN: Maybe not horrible, but it's not great.

BACH: Here's another important thing to know. About a third of people who got first time home loans last year had less than perfect credit. So the banks are working with sub prime borrowers today -- that's somebody who has less than perfect credit -- to help you not only get into a loan, but also get your credit score up over time.

S. O'BRIEN: Why are they doing that?

BACH: Well, because it's very simple. It's called market share. And this is where they're going to grow their market share is with sub prime borrowers.

S. O'BRIEN: There are certainly people who would say I'd love to buy a house but, you know, what I can buy with my money here in Manhattan is not my dream apartment, it's my, you know, so I'll just wait until I save all the money to buy my dream apartment.

BACH: And even on Manhattan, what people do is they have an apartment, they rent for years. And then when they make their list of what they want when it goes to buy a home, they have this long list.

S. O'BRIEN: Yes.

BACH: You know, David, I want this. I want a kitchen...

S. O'BRIEN: And the pool...

BACH: ... I want a bedroom...

S. O'BRIEN: ... and the great kitchen and the... BACH: Listen, here's the truth, Soledad. For most people who are renting today, in order for them to be able to buy something, they're going to have to take a step back. But nobody wants to. So a lot of renters get trapped with the mentality of what I call the dream home mentality, which is I'm not going to buy anything until I can afford exactly what I want.

S. O'BRIEN: Because you could rent for much better than what you could buy. So you're saying you should downsize on your renting, save your money and put it into buying?

BACH: What I'm saying is in order for you to buy, you have to downsize what you want. So, in other words, let's say you're renting right now a two bedroom apartment. You may have to buy a one bedroom apartment or a studio apartment in order to get into the game of owning real estate. But the way you get your dream home is you buy your first house. It can take you two to three homes to get your dream home. I mean we've all been there.

S. O'BRIEN: Right. Right.

BACH: You know, my first home, when my mom saw my first home, it was such a fixer upper that she cried. My mom's in the green room. She's watching. She cried. She literally cried. She's like, "You don't know what you're doing."

But that, you know, today I have this beautiful apartment in Manhattan. It took...

S. O'BRIEN: You work your way up slowly.

BACH: You work your way up. It took three homes to get there.

S. O'BRIEN: It's interesting, because we kind of work in a -- live in a society where people don't really necessarily want to wait and I think that plays into it.

But you're doing something about this. I love this. You are -- you've got this -- the great American homeowner challenge.

BACH: The great American homeowner challenge. I'm going across America over the next three years with a financial literacy campaign. It's an initiative. It's sponsored by Wells Fargo Home Mortgage. We're going out to teach 10 million people across America who rent how they can buy their first home, and those who own a home, how they can build financial security from their home. So we're leaving, you know, today, actually, to go on a 15 city tour. We launched this last night at the Javitz Center. We had 3,000 people...

S. O'BRIEN: Who want to be homeowners...

BACH: Who want to be homeowners...

S. O'BRIEN: ... come and see you?

BACH: ... come and see me. We're giving away 30,000 copies of my book.

S. O'BRIEN: That's awesome.

BACH: We gave a check last night to Habitat For Humanity for $120,000. If people want to come to the seminars, they're free. They can get the information at finishrich.com.

S. O'BRIEN: Cool.

Great.

David, always nice to see you.

Thanks for talking with us this morning.

BACH: Thank you, Soledad.

S. O'BRIEN: Of course, your latest book in a long series -- and all of them are terrific -- "The Automatic Millionaire Homeowner."

Thanks for talking with us.

BACH: Thank you.

S. O'BRIEN: Hi to your mom, by the way.

BACH: Hi, mom.

S. O'BRIEN: Miles?

M. O'BRIEN: Thanks very much.

Disney has some legal troubles on its hands and there might be hell to pay.

Andy will tell us the studio is in a rumble with the Hell's Angels. He's minding your business next.

And in "A.M. Pop," Michael Imperioli of "The Sopranos" will join us live in the studio. We'll see if he'll spill the beans on any secrets from this Sunday's premier. I wouldn't count on that, but we'll try.

Stay with us for more AMERICAN MORNING.

(COMMERCIAL BREAK)

ANNOUNCER: You're watching AMERICAN MORNING with Soledad O'Brien and Miles O'Brien.

M. O'BRIEN: Good morning from New York City. It's warm here. It's going to be warm all throughout the weekend. We hope you get the same kind of treatment wherever you may be.

S. O'BRIEN: Although, Chad has been reporting on some pretty wild weather. We're going to get to that in a little bit. M. O'BRIEN: Yes.

We're going to be talking to the Reverend Franklin Graham in just a moment. He and his father, the Reverend Billy Graham, are in New Orleans trying to spread some hope.

And Billy Graham is an amazing man, isn't he? He's still going.

S. O'BRIEN: It wasn't long ago that we were talking about his last trip...

M. O'BRIEN: Right.

S. O'BRIEN: ... and how, you know, because of his failing health. And then when we were in New Orleans for Mardi Gras, you saw giant posters...

M. O'BRIEN: Yes.

S. O'BRIEN: ... saying March 13th, they're coming.

M. O'BRIEN: There they are.

S. O'BRIEN: So much for your last trip.

M. O'BRIEN: So we're going to ask him about, you know, New Orleans. They're going to talk to preachers and people there and trying to offer hope. We'll try to get a little taste of what they're saying to people there.

S. O'BRIEN: I'm looking forward to that.

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