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American Morning

Selling Medicare; Enron Whistleblower

Aired March 15, 2006 - 06:30   ET

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


SOLEDAD O'BRIEN, CNN ANCHOR: Welcome back, everybody. Those stories ahead this morning.
First, though, let's get right to Carol. She's in the newsroom with the updates on our top stories.

Hello.

CAROL COSTELLO, CNN ANCHOR: Hello. And just in time for St. Patrick's Day and the green beer.

Good morning, everyone.

Today is the day Saddam Hussein is expected to take the stand in his own trial, but so far we have not seen him yet. The former dictator's half brother did testify that he had no part in a crackdown against Shiites back in the 1980.

Barzan Hassan's testimony just wrapped up. We're hearing Saddam Hussein may be next. Nic Robertson actually said it might happen as late as this afternoon, though.

We'll take you live to Baghdad in the next hour.

A judge has decided the government can still seek the death penalty against Zacarias Moussaoui, but their case was dealt one major blow. The federal judge suspended proceedings earlier this week after it was found that an attorney apparently tried to coach witnesses. The trial set to resume on Monday.

The funeral for former Serbian strongman Slobodan Milosevic will be held this weekend. Milosevic will be buried at his hometown near Belgrade. His supporters had demanded a funeral with state honors, but that request has been rejected.

In the meantime, a Russian heart specialist is confirming results of an autopsy saying Milosevic died of a heart attack.

Put the brakes on elections in New Orleans. That's what civil rights leader Jesse Jackson is calling for. Jackson is among several voices asking for satellite voting stations to be set up since many residents have yet to return to New Orleans since Katrina hit. A final decision could come sometime next month.

"Tonight Show" host Jay Leno saying he's sorry. Leno's show recently aired a sketch that compared Dick Cheney's hunting accident to a 2003 videotaped shooting incident outside of a courthouse. Well, the friend of the victim wrote Leno a letter calling the sketch offensive, and within days Leno reportedly called and apologized.

And got change for a billion bucks? A billion bucks? U.S. Customs agents in California were investigating a man on cash smuggling charges and came across this -- yes, a stash of bogus billion-dollar bills.

They were dated with the year 1934 and had a picture of Grover Cleveland on them. The highest currency in print is the $100 bill. Yes, there's no such thing as a billion-dollar bill. Federal agents say people are still easily tricked, though.

So, if you've got a billion-dollar bill in your back pocket it ain't real.

S. O'BRIEN: You're not going to break that for me? Where's the love, Carol?

COSTELLO: I can't do it.

S. O'BRIEN: Thanks.

Let's talk about President Bush this morning. He's on the road again today trying to sell seniors on his Medicare prescription drug plan. In upstate New York on Tuesday, the president said the new drug benefit is a good deal, even though it seems to be causing for some people lots of confusion.

AMERICAN MORNING'S Bob Franken is live for us this morning in Washington D.C.

Hey, Bob. Good morning.

BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Good morning.

The administration says 26 million have signed up, but the Democrats say it is such a mess that the deadline for signup needs to be extended. It becomes just another controversy that the president has to quell.

(BEGIN VIDEOTAPE)

FRANKEN (voice over): Day one of the president's tour selling his controversial Medicare prescription program, Plan B, definitely stayed on message.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: How is it going?

SUSAN WILBER, HEALTH CARE PROFESSIONAL: It's going well. There was a little bit of confusion at first. But...

BUSH: No, but, I mean, you don't want to recommend someone to sign up and they say, why did you get me to sign up for this? I mean...

WILBER: For the most part, it's worked very well. We've gotten some excellent feedback from our customers. FRANKEN: The feedback from this assisted living facility near Washington that the president visits today was a sharp contrast to that.

ERICA RYBECK, AGE 77: And I think it's totally a farce, but I had a great deal of help in the beginning. I read over it. I truly didn't understand a lot of what I was reading.

WALTER RYBECK, AGE 81: I was just baffled by it. Really, that's the only word I can say. It was just so complex. And I just found it very difficult to follow how it worked.

DORA SPELLMANN, AGE 82: I got so confused from the very beginning trying to figure out all of this stuff. I thought, how in the world is the retirement age people going to understand this?

FRANKEN: But if the president's latest appearance on his Medicare plan is any indication, that will not be his take on Plan B.

BUSH: It's working. It makes lot of sense.

E. RYBECK: I don't think the majority of people understand it, and I guess my question to him would be, do you understand it, Mr. President?

(END VIDEOTAPE)

FRANKEN: Well, there seem to be two schools of thought, Soledad. One, you can do it. The other one, you've got to be kidding.

S. O'BRIEN: Two very different schools.

Let me ask you a question, politically speaking. How big of a problem is this not for the president, but for Republicans who face the midterm elections?

FRANKEN: Well, the seniors are a very big, very powerful voting bloc. And President Bush now is going to be one of the issues, even though he's not a candidate this year. So the short answer is, it's a big deal.

S. O'BRIEN: All right.

Bob Franken for us this morning.

Bob, thanks -- Miles.

MILES O'BRIEN, CNN ANCHOR: The woman who blew the whistle on Enron front and center in a Houston courtroom today. Sherron Watkins will swear to tell the truth and nothing but the truth about the energy trading company that ended with such misery. Of course, Watkins claims she's always told the truth about Enron all along.

Chris Huntington has the latest from Houston.

(BEGIN VIDEOTAPE) CHRIS HUNTINGTON, CNN CORRESPONDENT: Sherron Watkins famously predicted to Ken Lay that Enron would implode in a wave of accounting scandals. Now her so-called whistle-blowing is being put to the test. She's expected to take the stand today to testify against Ken Lay and Jeff Skilling.

She's never been shy about publicly pointing the finger at them. She testified before Congress and she's even written a book about Enron.

The defense will try to discredit her, but may have some difficulty because she's never been charged with a crime and never had to strike a deal with the government. Still, because she has been so public in her criticism about what went on at Enron, the defense believes there's not much she could suddenly unveil at the trial.

Chris Huntington, CNN, Houston.

(END VIDEOTAPE)

M. O'BRIEN: And our weather whistleblower this morning, Chad Myers.

Good morning, Chad.

CHAD MYERS, CNN METEOROLOGIST: Good morning, Miles.

(WEATHER REPORT)

S. O'BRIEN: All right, Chad. Thank you.

MYERS: You're welcome.

S. O'BRIEN: Still ahead on AMERICAN MORNING, more details on the story we first told you about on Tuesday. That popular sleep drug, Ambien, now being linked to sleepwalking and binge eating. This morning, our senior medical correspondent, Dr. Sanjay Gupta, will take a closer look at that story.

M. O'BRIEN: And do you remember J-Mac? Who could forget this tape. Right?

S. O'BRIEN: Love this kid.

M. O'BRIEN: Great kid. Great event. Well, he's got a new friend there, as you can see.

S. O'BRIEN: A powerful friend.

M. O'BRIEN: The president came into the neighborhood and thought he would meet him on the tarmac there. J-Mac, meet George W.

And later, as if we needed anymore reasons to toss -- toss back a few brewskies, you now have a license, gentlemen. Start your taps. Beer may slow the aging process. I'll say it again, beer may slow the aging process. Oh happy day. Stay with us.

(COMMERCIAL BREAK)

S. O'BRIEN: Lots of Americans have trouble sleeping, and increasingly they're turning to medication to fight insomnia. But one popular pill could have some pretty strange and pretty surprising side-effects.

Dr. Sanjay Gupta has a look this morning.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN SR. MEDICAL CORRESPONDENT (voice over): It happens under the cover of darkness during sleep, the mysterious urge to eat. For years, doctors wondered how sleeping and eating could happen at the same time. Now two unpublished studies suggest that a possible cause may be the popular sleep drug Ambien.

DR. CARLOS SCHENK, MINNESOTA SLEEP DISORDERS CENTER: Ever since Ambien came on the market there were sporadic reports of sleepwalking being induced by the Ambien, and then there were some reports coming out about eating with the sleepwalking induced by the Ambien.

GUPTA: Six years ago, Judy Evans began taking Ambien for insomnia. Soon after, curious side-effects set in. She said that night after night she would leave her bed and trudge like a zombie to the kitchen.

JUDY EVANS, AMBIEN USER: I had gotten out of bed and I was cooking. I don't even like eggs, and I was cooking eggs and bacon.

GUPTA: Each night brought another trip to the kitchen to make a sandwich, cook an elaborate meal, and one time turning the oven up to 500 degrees.

Suspecting something was wrong, her son stayed awake. He was startled by what he saw.

EVANS: He told me what I had done, and I said, "No way. I did not do that."

SCHENK: In all cases, there is complete amnesia the next day. There is no recall whatsoever of what that person engaged in.

GUPTA: And Ambien may account for more than just sleep-eating. There have even been cases of sleep-driving, says Dr. Carlos Schenk, who led the studies linking Ambien with abnormal sleep behaviors. Dr. Schenk says that in sleepwalking, sleep-eating and sleep-driving, Ambien may confuse the brain. You can perform complex behaviors while the mind is partially asleep.

SCHENK: You're acting like a zombie and you're rolling the dice. And whenever you roll the dice it is very dangerous.

GUPTA: In a statement, Ambien's manufacturer, Sanofi-Aventis, says it could not comment on specific cases, adding that "It is difficult to determine with certainty whether a particular instance of sleepwalking is drug induce, spontaneous in origin, or a result of an underlying disorder."

Now, there is no large study to gauge the risk. And even Dr. Schenk says the vast majority of Ambien users should not worry, and to follow the warning labels provided with prescriptions.

SCHENK: For people who are carefully diagnosed with insomnia or trouble falling asleep, Ambien an excellent medication. For most people it is very safe and well-tolerated.

GUPTA: The manufacturer says if you find yourself sleepwalking after taking Ambien, see your doctor.

Dr. Sanjay Gupta, CNN, reporting.

(END VIDEOTAPE)

S. O'BRIEN: You know, the average American only gets 6.8 hours of sleep every night. You're supposed to get eight.

M. O'BRIEN: I would love 6.8. Are you kidding? Bring it on.

S. O'BRIEN: That story debuted, by the way, on "PAULA ZAHN NOW." And you can watch Paula, of course, tonight and every weeknight, 8:00 p.m. Eastern, right here on CNN.

M. O'BRIEN: Eight hours is what ideally...

S. O'BRIEN: Eight hours is ideal. I'd love to get nine.

M. O'BRIEN: And so...

S. O'BRIEN: I usually get five -- 6.8 sounds...

M. O'BRIEN: 6.8? Bring it on.

Still to come on AMERICAN MORNING, today could be the day that Saddam Hussein finally takes the stand in that trial. Yes, that trial is still going on. We will update you on that next.

S. O'BRIEN: And later this morning, some rumors of staff changes at the White House. We'll look into those just ahead as we continue right here.

Stay with us.

(COMMERCIAL BREAK)

S. O'BRIEN: It looks like a postcard.

M. O'BRIEN: Positively idyllic. And 6:47 local time. That would be Eastern Time.

Look how bright it is out there. S. O'BRIEN: Yeah.

M. O'BRIEN: Spring is on the way. Of course, I hate to be the doctor of doom again, but we will be setting the clocks -- you know, springing forward, which will adversely impact us on the wee hour shift.

S. O'BRIEN: And that shot...

M. O'BRIEN: Yes, that shot will go right down the tubes.

S. O'BRIEN: No more light.

M. O'BRIEN: But anyway, enjoy it while we have it.

S. O'BRIEN: Let's get a look at the headlines this morning. Carol has got those.

Good morning.

COSTELLO: Good morning.

We are waiting for Saddam Hussein to take the stand in his own defense. So far, his half brother and former intelligence chief has testified today. Earlier this month, Saddam Hussein said he alone should be tried for a crackdown in 1982.

We will be monitoring the courtroom. When Hussein does take the stand, of course we'll bring that to you from Baghdad.

The trial of Zacarias Moussaoui now on hold until Monday. A judge is giving prosecutors some time to sort out its options now that nearly half of the key witnesses are barred from the stand. The judge penalized prosecutors after learning that a lawyer had improperly coached seven aviation officials.

NASA is pushing back its next launch date. It was set for May, but now it won't happen before July at the earliest. It seems there's an electrical problem with one of the sensors in the shuttle's fuel tank. To be on the safe side, the agency is replacing all four sensors, so they will miss that May launch window.

The Texas panhandle still on fire and it could be getting worse. Firefighters bracing for strong winds in the area today. That could ignite smoldering flames and push the fire even further. So far, 11 people have died and more than 700,000 acres have been destroyed.

So, Chad, tell us about the wind.

(WEATHER REPORT)

M. O'BRIEN: All right. Thank you very much, Chad.

You know, we've shown you this tape so much that we're about to play that we're kind of afraid we're wearing it out. But, you know, it really doesn't wear out its welcome, does it? S. O'BRIEN: Oh, no. I love to see this.

M. O'BRIEN: You know? That's J-Mac, the man they call J-Mac. At the end of the game in upstate New York, I don't know, was it six weeks or so ago now? And three-pointer after three-pointer after three-pointer. Set a school record.

S. O'BRIEN: Only in the game for four minutes.

M. O'BRIEN: Yes. Just his four minutes -- a bit of glory there.

Since that time, J-Mac has had a wild ride of publicity and he's met some very famous people.

Here's Wolf Blitzer with more on that.

(BEGIN VIDEOTAPE)

WOLF BLITZER, CNN CORRESPONDENT (voice over): Jason McElwain's smile said it all. His airport encounter with President Bush was icing on the cake for a high school senior whose hoop dreams came true.

BUSH: Jason, do you mind if I call you J-Mac?

JASON MCELWAIN, BASKETBALL PLAYER: Yes.

BUSH: I'll call him J-Mac. You call me George W.

BLITZER: J-Mac's story never fails to choke most of us up, even if we have heard it and seen it over and over again.

Jason is autistic. For three years he was the hard-working manager of his school's basketball team in the suburb of Rochester, New York. He had never been allowed to dress with the team, let alone play in a game. Then last month, during the final home game of the season, the coach told him to suit up.

MCELWAIN: He said, this is your senior -- this is your last -- last chance to ever get on the floor as an actual basketball player for that night.

BLITZER: J-Mac took the ball and ran with it. He scored an amazing 20 points in the four minutes left in the game. Six three- point shots and one two-pointer.

MCELWAIN: I was on fire. I was hotter than a pistol.

BUSH: This is a story of a young man who found his touch on the basketball court, which in turn touched the hearts of citizens all across the country.

Saw it on TV. Saw it on TV and I wept, just like lot of other people did.

But let me have that there, coach. UNIDENTIFIED MALE: OK. There you go, sir.

BUSH: Thank you.

There you go. It kind of looks like you.

BLITZER: It was difficult to tell who enjoyed this meeting more, Jason and his parents, who got to spend quality time with the commander in chief, or was it Mr. Bush? He took a detour from a routine Medicare speech and from his mounting political problems to enjoy the company of a young man whose been an inspiration to us all.

(END VIDEOTAPE)

M. O'BRIEN: An inspiration indeed. A reminder. You can catch Wolf in "THE SITUATION ROOM" weekdays, 4:00 p.m. -- excuse me, 4:00 p.m. and 7:00 p.m. Eastern Time.

Wolf is an inspiration to us because he never stops working.

S. O'BRIEN: I think the president enjoyed it the most. He was really grinning.

M. O'BRIEN: Yes.

S. O'BRIEN: Andy is "Minding Your Business" this morning.

What you got coming up?

ANDY SERWER, EDITOR-AT-LARGE, "FORTUNE": I am, Soledad.

What happens to your ears when you listen to Jessica Simpson or John Legend or U2 or even Rachmaninov at full blast year after year after year?

Plus, the best news we've had all week: beer is good for you. Don't want to miss that.

Stay tuned to AMERICAN MORNING.

(COMMERCIAL BREAK)

M. O'BRIEN: In a moment, the top stories, including this: Saddam Hussein to take the stand in his trial. The Sago Mine owner blaming lightning for that deadly blast there in January.

The judge in the Zacarias Moussaoui case bars key witnesses from testifying.

Coast Guard searching for seven missing after a dam break in Hawaii.

And we're live in Texas, where weary firefighters are bracing for more strong winds on the fire line.

Stay with us for more AMERICAN MORNING. S. O'BRIEN: And welcome back, everybody.

Let's talk business news now. A story that we touched on the other day, the -- what they call earbuds...

SERWER: Right.

S. O'BRIEN: ... that you see in iPods could be causing some damage for the business implications. Andy's got that.

Good morning.

SERWER: Good morning, Soledad.

That's right. Those little earbud headphones may be causing hearing loss. A letter from the National Institutes of Health stating that that could be a problem. Now we're understanding that Congressman Ed Markey of Massachusetts is on this bandwagon and demanding more research be done about this potential problem.

Of course, the big player here is Apple Computer with its iPod. Forty-two million of these babies have been sold over the past five years.

And the real problem here, of course, is, what are the implications of, say, a 10-year-old today wearing them and, say, what is their hearing going to be like when they're 25 years old? France has mandated that they turn down the volume of the iPods because apparently it's the same sound level as a jet engine, and you are supposed to not listen to it at more than 60 percent volume.

And it's interesting. We haven't heard from Apple Compute about this, but no doubt they're going to be following this.

S. O'BRIEN: Oh, you know, but the sound quality has gotten so good that it just makes sense to crank it up because it's -- you know...

M. O'BRIEN: There are certain songs that must be cranked. And your kids are not going to be listening to these kinds of warnings.

S. O'BRIEN: Right. Right.

SERWER: Right. And if you're listening to Boston or Aerosmith, some of this old dinosaur rock...

S. O'BRIEN: You don't think that could bring down the iPod in any way? I mean, they would just modify the earbuds, right?

SERWER: Yes. I don't think so. They're just going to turn down the software is basically what's going to happen there.

Now, we want to move on to this beer story...

S. O'BRIEN: Oh, yes. Of course.

SERWER: ... because this is just big news.

M. O'BRIEN: We've be been dying for you to move on to that.

SERWER: Right.

Researchers in Austria and the Czech Republic have come out with studies that say beer is healthy.

M. O'BRIEN: Yes.

SERWER: First of all, the Czech Republic and Austria produce a lot of beer. So let's just start with that.

The Austrian study says that hops is an anti-inflammatory, much like green tea or red wine. The Czech study says that moderate beer consumption slows aging and reduces the likelihood of heart attacks. The Czech study paid for by a group of brewers who also said in an earlier study that two beers a day reduces impotence in males.

Now, listen to this...

S. O'BRIEN: A long list of upsides. We're actually out of time. We're going to move on to our next...

SERWER: How about a virtuous cycle, the more I drink, the more beer...

(CROSSTALK)

S. O'BRIEN: I'd buy it. I'd buy it.

Andy, thank you very much.

SERWER: You're welcome.

S. O'BRIEN: Let's get a quick check of the weather before we get to the top of our hour.

Chad, good morning.

MYERS: He's digging himself a big hole, isn't he? He's just -- Andy, you're just getting a bigger shovel.

(WEATHER REPORT)

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