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Attorney General Under Fire Over Prosecutor Purge; Iraq and Vietnam

Aired March 14, 2007 - 15:00   ET

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


DON LEMON, CNN ANCHOR: The next hour of the CNN NEWSROOM starts right now.
Hello. I'm Don Lemon, live at the CNN world headquarters in Atlanta.

KIRAN CHETRY, CNN CORRESPONDENT: And I'm Kiran Chetry, in for Kyra Phillips.

The mortgage meltdown spills over into other parts of the market. But we could see a late-day rebound. We have our eye on the numbers.

Plus, raging rains and risky rescues in Texas, and it's not over yet.

You're in the CNN NEWSROOM.

And it is 3:00 p.m. on the East Coast, and, on Wall Street, the final hour of trading is under way. Stocks have been up and down all around, really, today. So, there is a good chance we could see some more volatility before the closing bell.

I'm looking at it right now. It looks like up 25 points, almost. S, that's pretty good.

For a look at today's roller-coaster ride, we go to Susan Lisovicz at the New York Stock Exchange.

So, things have gone better since we talked to you. Hi, Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: That's right. That's right.

I mean, this is volatility. And it's -- it's something that frequently occurs when you have the kind of sell-off that we had two weeks ago, where you see a decisive change in investor sentiment. It -- it's not back to normal. I mean, there are a lot of concerns that are still out in the market.

And you're seeing volatility play out big time today. The Dow industrials, which are 23 points right now, have been down as much as 136 points, up more than 50, so, they have -- certainly off their highs for the session.

Many analysts were worried that, if the Dow had a big sell-off today, back-to-back sell-offs, it just was a very ominous sign of things to come. But, for now, the three major averages are back in positive territory.

And the blue chips are above 12000. They had dipped below that level for the first time since November. The Nasdaq, meanwhile, is up half-a-percent. You know, this is -- the kind of drops that we have seen here is something that affects investors overseas as well.

But keep in mind that the market had -- only seemed to go in one direction since last summer. And that's up -- the crisis in the subprime mortgage sector changing that. Concern is that, as late payments and foreclosures rise, the entire housing market and the economy in general could take a hit -- Kiran.

CHETRY: All right, Susan Lisovicz, thanks so much. We are going to keep an eye on the markets, check back with you in just a couple of minutes.

Also, we're going to head over to Don now.

LEMON: Yes. And we're going to check that market...

(LAUGHTER)

LEMON: ... because it's going to close in about 45 minutes. And we definitely want to have that.

He has got some explaining to do, and he plans to do it. The fallout over the firing of eight U.S. attorneys, well, it just keeps growing. And CNN has learned the man at the center of it all, Attorney General Alberto Gonzales, is going to Capitol Hill later this week and next week to further explain those firings.

He's facing calls from congressional Democrats to resign. They also want to know just how involved the White House was. And they're threatening to subpoena top presidential aides, including Karl Rove.

Meantime, questions over the controversy followed President Bush to Mexico today. Here's what he had to say. And then you will hear what he had to say to our Miles O'Brien this morning -- at least what Alberto Gonzales -- Gonzales had to say.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I do have confidence in Attorney General Al Gonzales. I have talked to him this morning. And we talked about his need to go up to Capitol Hill and make it very clear to members in both political parties why the Justice Department made the decisions it made; make it very clear about the facts.

And he's right. Mistakes were made. And I'm frankly not happy about them because there is a lot of confusion over what really has been a customary practice by the presidents. U.S. attorneys and others serve at the pleasure of the president.

(END VIDEO CLIP)

(BEGIN VIDEO CLIP, "AMERICAN MORNING")

MILES O'BRIEN, CNN ANCHOR: Do you feel it's time for you to step down?

ALBERTO GONZALES, ATTORNEY GENERAL: That will be a decision for the president of the United States to make. I think , if you look at the record of the department, in a wide variety of...

O'BRIEN: But should -- should you tender -- should you offer your resignation? Is it time for you to offer your resignation?

GONZALES: That is -- that is a -- a decision for the president of the United States to make. I am going to be focused on identifying what went wrong here, correcting those mistakes, and focus on doing good for the American people.

O'BRIEN: The decision -- the decision on whether to offer your resignation is yours, is it not?

GONZALES: I'm focused on doing my job.

(END VIDEO CLIP)

LEMON: Well, the fired prosecutors say they were sacked for political reasons.

Gonzales insists it was just part of an evaluation process. But one of those U.S. attorneys was let go for political reasons. And Justice Department officials acknowledge it. Bud Cummins was asked to resign last June to make way for a former aide to top presidential adviser Karl Rove.

Cummins says politics also had a lot to do with his seven colleagues being fired. And he tells CNN's "AMERICAN MORNING" he feels betrayed.

(BEGIN VIDEO CLIP)

BUD CUMMINS, FORMER U.S. ATTORNEY: My Republican credentials are in pretty good shape. And -- and, as a Republican, I'm disturbed any time that my own team doesn't seem to be wanting to deal in candor with the public and with Congress.

But the attorney general has, I believe, an absolute responsibility to insulate all federal prosecutors, the political appointees and these wonderful career people that we work with, and the agents, from outside politics.

And the notion that a party chairman or a congressman or a senator, from their outside perspective, could become critical of a prosecutor, and a job action would be taken in response to that, without any internal investigation or utilizing any of the procedures that are in place in the department to determine if somebody is following the book and doing their job, is pretty frightening to me.

O'BRIEN: Mr. Cummins, about out of time. Just quickly, though...

CUMMINS: Yes, sir.

O'BRIEN: ... should Mr. Gonzales step down?

CUMMINS: That's not for me to say. I...

(CROSSTALK)

O'BRIEN: Does he -- does he owe you or the others an apology?

CUMMINS: He doesn't owe me an apology.

O'BRIEN: What about the others?

CUMMINS: I serve at the pleasure of the president. But the others, yes, he should apologize to them, and he should retract his statements as to the other seven.

(END VIDEO CLIP)

LEMON: Well, the White House says it was former counsel Harriet Miers who first came up with the idea to shake up the federal prosecutors. The onetime Supreme Court nominee apparently wanted to replace all 93 U.S. attorneys after President Bush's reelection.

CHETRY: Heavy rains, flash floods, a really dangerous mess in central Texas -- this video coming to us. This happened overnight.

Rescuers try to pull an elderly couple ashore after their car was washed into what was normally is a creek. But the rushing waters proved to be too powerful, dragging the couple downstream. Rescuers were able to grab the woman and pull her ashore. She was rushed to the hospital. The search, though, still continues for her husband.

So, the situation in Texas at least looking a little bit better, we're hoping, today. They -- they're drying out. But, boy, they have had it tough this season.

Rob Marciano has more.

ROB MARCIANO, CNN METEOROLOGIST: Hi.

CHETRY: Hi, Rob.

MARCIANO: Hi, Kiran.

There is less rain falling right now across those areas that have seen the rivers rise. Small creeks and streams have turned into torrential rivers, as you have seen in that video.

Over the last 48 hours, in spots, the Doppler has indicated an estimation of about six inches or more southeast of San Antonio. And there are still a number of small streams and rivers that are over their flooding -- their flood banks. And flood warnings are still in effect for parts of this area -- very stubborn area of low pressure that has been slowly pulling into the eastern part of the state, now heading into parts of Louisiana, with it, not only heavy rain, but also gusty winds.

And there was one report of a tornado in Houma, Louisiana, with this band that is now moving through Biloxi and also Mobile. In through Lake Charles; Sabine Pass; Beaumont, Texas; the Golden Triangle, we're seeing some rough weather here.

And, also, we will switch to the -- the close-in Doppler. You see that yellow box there. There is a severe thunderstorm watch out now until 7:00 p.m. local time for this area. It does include Houston. And, right now, western suburbs of Houston about to get hit with some heavy rain and thunderstorms, although, at the moment, there are no severe weather -- severe thunderstorm warnings out, but lots of lightning, no doubt about that.

Numerous lightning strikes have been reported, in the last hour, over 2,300 lightning strikes with this particular system that continues to move off to the east.

On a separate note, to the north and west, and even to the east, the temperatures have been building. In Indianapolis, record high yesterday of 80 degrees, Omaha, Nebraska, also 80; Peoria, 78; Denver, Colorado, 74; 72 in Erie, PA. You may remember we had record-high temperatures across much of the Western states the day before that. So, this warm air certainly is stretching off towards the east.

Look at New York City, at this hour, 64 degrees, D.C., 78. We should have a live picture from our nation's capital. Seventy-eight degrees, if that's not warm enough to get the old cherry blossoms blooming, I don't know what is. That is certainly well above average. And they may get an early start to that season, for sure. Seventy degrees right now is the current temperature in Saint Louis, and 63 degrees in Dallas.

Tomorrow's forecast highs, a little bit cooler. There is slightly cooler air that's going to start to drop down to the South, and getting everybody a little bit more back to normal. It's not quite officially spring yet, Kiran, but it sure fees like that in a lot of spots across the country.

CHETRY: It does.

Rob Marciano, thanks.

MARCIANO: You bet.

LEMON: Lots of movement today on a week-old missing-child case in south Georgia -- just in the past few hours, word that now four people are in custody in connection with the disappearance of Christopher Michael Barrios Jr.

He's 6 years old, last seen last Thursday near his home in Glynn County. Police say the suspects told them where to search for the boy's body, though nothing has turned up yet. The suspects are George Edenfield, his mother, Peggy, his father, and a family friend. Police say George Edenfield lives near the boy's home and is a registered sex offender.

CHETRY: And, right now, we're going to straight to CNN's Fredricka Whitfield with details on a developing story.

Hi.

FREDRICKA WHITFIELD, CNN CORRESPONDENT: Hi, Kiran, and welcome.

Anand Jon, perhaps not a household name, but he certainly is well-known in the fashion industry. His name is certainly on the list. His designs are coveted by a number of it-list kind of celebrities. Well, now, in Beverly Hills, he's winning the distinction that perhaps is at the very least embarrassing. He is charged with multiple counts of rape and sexual assault on -- or involving, rather, three women, three models, one -- one of whom is as young as 15 years old.

His attorneys say that they are fabrications by models who say they just have not been working enough. The alleged assaults took place between October of 2004 and just this last March. He is now in jail on $1.3 million bond -- Anand Jon. So, remember the name.

CHETRY: All right, Fredricka Whitfield, thanks so much for bringing us up to date on that.

Well, fought in different centuries and fought in different countries, some see some disturbing parallels, though, between the wars in Iraq and Vietnam.

Paula Zahn is going to be joining us live with more on that comparison -- ahead in the NEWSROOM.

LEMON: And 9/11 made him, but could it also break his chances as a White House candidate? We're asking that question ahead in the NEWSROOM. Why are firefighters so mad, so upset at Rudy Giuliani?

(COMMERCIAL BREAK)

LEMON: Almost quarter past the hour, and here are some of the stories we're working on for you right here in the CNN NEWSROOM.

Mistakes were made, and he is not happy about it. President Bush reacting to the fallout over the controversial firings of eight federal prosecutors. But Mr. Bush is also standing behind Attorney General Alberto Gonzales, who is heading to Capitol Hill this week to explain the firings.

Sleep tight? Well, not quite. The government wants new warning labels on some popular sleeping pills, including Ambien and Lunesta. They have been linked to sleepwalking, allergic reactions, and even sleep-driving in some cases.

Let's get a live look now at Wall Street, where it's been an up- and-down day. Luckily, it's up right now -- reports of big losses in the mortgage-lending industry -- some stocks sliding early on. And they appear to be edging back up -- the Dow up 33 points right now. CHETRY: America is a melting pot, with each culture keeping some of their unique differences. Well, those differences were brought to the forefront this weekend, a tragic fire in New York City.

CNN's Gary Tuchman reports.

(BEGIN VIDEOTAPE)

GARY TUCHMAN, CNN NATIONAL CORRESPONDENT (voice over): It was emotionally difficult to watch this man, as he prayed in a mosque after losing five of his 11 children in a Bronx, New York, house fire.

Moussa Magassa is still in a state of disbelief, which made his kindness and graciousness so noteworthy when we talked with him about New Yorkers.

MOUSSA MAGASSA, LOST CHILDREN IN FIRE: And I appreciate what they have done for me, you know, from the governor, the mayor, everybody. I thank everybody in New York City.

TUCHMAN: Magassa, who went through his destroyed home today, is from Mali, one of tens of thousands of West Africans who have immigrated to the United States, mostly in the New York City area. The tragedy has opened a window on a way of life not always understood in the West.

(on camera): How are your wives doing?

MAGASSA: She's doing fine. She's doing fine.

TUCHMAN: You have two, right?

MAGASSA: Yes.

TUCHMAN: And are they both doing fine?

MAGASSA: They're doing fine. They're doing fine.

TUCHMAN (voice over): Like many Muslims, Magassa has more than one wife. Both women survived the fire. Five of his wife Manthia's seven children died. The four children of his wife Aisse all survived.

There was a huge outpouring of support at the funeral, including some of the city's top politicians.

MICHAEL BLOOMBERG (R), MAYOR OF NEW YORK: Let us pray that this never happens again. Salam alaikum.

TUCHMAN: Polygamy is illegal in the United States, which has made many worry these grieving family members could find themselves in legal turmoil. But polygamists have not been prosecuted in the country for decades, unless the marriages involve underage girls, like those allegedly arranged by fundamentalist Mormon leader Warren Jeffs.

Columbia University's Gregory Mann is an expert on West Africa. GREGORY MANN, PROFESSOR, COLUMBIA UNIVERSITY: Malians have always had polygamist households as far back in history as we can tell. And, of course, Islamic law allows to for polygamy as well.

TUCHMAN (on camera): In your country, you're allowed to have two wives. Not in this country.

UNIDENTIFIED MALE: I have four.

TUCHMAN: You have four wives?

UNIDENTIFIED MALE: Yes.

TUCHMAN: Really?

(voice over): Abdu (ph) is from Gambia. He has lived in this Bronx neighborhood for 19 years.

(on camera): Is it complicated? Is it hard?

UNIDENTIFIED MALE: It's not hard. If I don't know how to take care of them, I'm not going to do it. But I know how to take care of them.

TUCHMAN: I would think it's very hard. I don't think I could take care of four wives.

UNIDENTIFIED MALE: No, it's not -- it's not hard. God helping me.

TUCHMAN (voice over): West Africans are often described as hardworking, gregarious, generous, and grateful.

SHEIKH MOUSSA DRAMMEH, GAMBIAN IMMIGRANT: America is probably the best place to practice your own religion. The Constitution gives everybody the right to practice what you believe. Even the Muslim country, you may not have as much freedom to practice Islam as you have here in America.

TUCHMAN: In this country, this family's lifestyle and culture are not very well understood. But their grief sure is. West African or not, this is an American tragedy.

Gary Tuchman, CNN, New York.

(END VIDEOTAPE)

CHETRY: And a check right now of the Big Boards. It looks like a bit of a rebound for the Dow -- with just about 45 minutes left in the trading day, the Dow up 46 points, and back into 12000 territory. It dipped below that earlier in the day.

Well, even though we are seeing a rebound today, it's been a rough week on Wall Street already -- a large part of the problem, the turmoil in the subprime mortgage market.

Here to break that down for us, CNN's personal finance expert, Gerri Willis.

Hi, Gerri.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Hi there, Kiran.

You know, we have been following this for many weeks now, the troubles in the subprime lending area. And I have got to tell you, there are about two dozen companies that are having very difficult problems. Some of them have even gone out of business.

But now we're hearing the problems for some prime borrowers -- those are people that don't have great credit histories -- well, those problems are spreading to people who have very good credit histories.

(BEGIN VIDEOTAPE)

WILLIS (voice-over): As the subprime mortgage market tanks, those who work in the mortgage industry say it could have a ripple effect on prime loans, those for people with good credit.

KIM WARDEN, VICE PRESIDENT OF FEDERAL AFFAIRS, CENTER FOR RESPONSIBLE LENDING: We may see a stricter scrutiny, or sort of tightening of the standards, for all loans.

WILLIS: Wall Street is feeling the pain from the subprime mortgage meltdown. Some investment companies are getting out. And that means less cash available for lenders.

MELISSA COHN, FOUNDER AND CEO, MANHATTAN MORTGAGE COMPANY: Everyone is, at the moment, losing their shirt in the subprime market. So, we are seeing banks holding rates up, I believe, on the prime side of the marketplace, in order to help make up for the losses that they are suffering in the subprime end of the business.

WILLIS: Cohn says at least five major prime lenders this week have tightened their lending standards. This means that even people with good credit will have a harder time borrowing money. They will need to bring more documentation of their income, and banks will require down payments.

Plus, folks who have even a few blemishes on their credit report will pay higher interest rates when it comes to getting a new mortgage or even taking out a home equity loan.

(END VIDEOTAPE)

WILLIS: Bottom line here, it's going to be tougher for everybody to borrow money -- Kiran.

CHETRY: So, there are risks, also, for people that aren't looking to borrow money any time soon, right?

WILLIS: That's right.

You know, consumer spending is responsible for so much of economic energy in this country. In fact, more than two-thirds of GDP -- that's gross domestic product -- is consumer spending. If consumers pull back because they can't get loans, it could be bad for the economy.

What's more, it could even be bad for your 401(k). Many mutual funds are invested in these very mortgage businesses -- Kiran.

CHETRY: All right, Gerri Willis, thanks so much.

And she covers...

WILLIS: You're welcome.

CHETRY: ... a broad range of home and real estate issues each week on "OPEN HOUSE." You have got to check it out. It's Saturday, 9:30 a.m. Eastern, on CNN, and also on Saturday and Sunday, 5:30 p.m. Eastern, on Headline News.

LEMON: Oh, I watch it every single weekend. It's a great...

CHETRY: And take notes, right?

LEMON: Yes. It's a great show.

Well, fought in different centuries, fought in different countries, but some see disturbing parallels between the wars in Vietnam and the one happening right now in Iraq. Our very own Paula Zahn is live with us straight ahead -- more in the CNN NEWSROOM.

(COMMERCIAL BREAK)

CHETRY: A hero's welcome for the Iraqi president in his hometown -- Jalal Talabani on the mend and home to rest, after more than two weeks of medical treatment in Jordan. Talabani collapsed and passed out last month. Doctors said he was exhausted, dehydrated, and suffering from lung and sinus infections.

Well, handshakes all around at the Pentagon this morning -- Adel Abdul-Mahdi, one of two Iraqi vice presidents, meeting here with Defense Secretary Robert Gates. It's a slightly safer environment than the vice president is used to. He was injured in an assassination attempt in Baghdad just two weeks ago.

LEMON: Is the war in Iraq turning into another Vietnam, politically and militarily? That is a question being raised in Washington today, as the Senate began a new debate on Iraq.

Here's what Senator John McCain, a Vietnam veteran, said.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R), ARIZONA: Iraq is not Vietnam, Mr. President. We were able to walk away from Vietnam. If we walk away from Iraq now, we risk a failed state in the heart of the Middle East, a haven for international terrorists, an invitation to regional war in this economically vital area, and a humanitarian disaster that could involve millions of people. If we walk away from Iraq, we will be back, possibly in the context of a wider war in the world's most volatile region.

(END VIDEO CLIP)

LEMON: That debate now, of course, is going on in Washington, and has been for quite some time. Folks there are calling it a civil war, as a matter of fact.

Our Paula Zahn is examining the comparisons between Iraq and Vietnam in a special airing on CNN tonight at 8:00 p.m. Eastern.

And Paula joins us now with more.

Paula, there's been so much about this. I want to know -- I think I do know -- you're a serious journalist -- but why are you taking up this issue?

PAULA ZAHN, HOST, "PAULA ZAHN NOW": Well, I think, in part because there's been so much news out of Iraq lately. And, of course, with this debate you just referenced and Congress over the funding of the war, we wanted to see how Iraq is affecting our soldiers, how public opinion is shaping up at home.

And, Don, this statistic is really interesting. In the latest CNN poll, respondents said they believe the war in Iraq has turned into a situation like the Vietnam War. And some people are calling Iraq a quagmire, and are fearful that we will repeat the mistakes of Vietnam, which cost the United States some 58,000 lives.

There are others who think there is no comparison, and that the Iraq war has a clearer mission and a much larger public support than Vietnam ever did.

So, we're going to study some of the similarities and key differences in the military strategies, the -- the media coverage, and the soldiers' experiences in both wars in our program tonight. We're going to try to find out what lessons the nation learned from Vietnam and which of those have long been forgotten.

LEMON: OK.

Well, let's talk about the comparisons, Paula, specifically the military operations. Is there any comparison? How do they compare?

ZAHN: You know, you have been covering this war for a long time.

LEMON: Yes.

ZAHN: It kind of depends on who you ask.

We have some of our great CNN generals on the air tonight who were there. They served there. And some of them -- not all of them -- believe there are some very key strategic differences between what happened in Vietnam and the Iraq war. They say our goal is clearer in Iraq than it ever was in Vietnam, and that we can win this war in -- in Iraq, unlike Vietnam, which -- the war many thought was unwinnable from the very beginning.

And -- and I'm looking forward to talking with Senator Max Cleland, a Vietnam vet who lost three of his limbs in Vietnam. He has been a very vocal opponent of this war. And he says, you know, quite blatantly, that Iraq is another Vietnam, and that we are repeating the same mistakes by attacking a country that did not attack us.

We are also going to hear from veterans who served in both Vietnam and the Iraq war. They will compare the enemy, the lives of the wounded, and the American support for both wars.

So, it will be interesting to see, Don, at the end of the hour, how we all feel about this, because we have some really smart, thoughtful people on tonight who come at this from many different angles.

LEMON: I absolutely agree. It's a very pithy issue, very thick. And I -- I can't wait to see how you guys tackle it. I'm sure it's going to be a packed hour tonight, Paula.

ZAHN: You will be there the whole time, right, Don?

LEMON: Oh, Absolutely. I will be watching you...

ZAHN: Oh, good.

LEMON: ... and rooting for you, yes.

ZAHN: Hey, pop us an e-mail. I might even read it.

LEMON: Oh, absolutely. Will do.

ZAHN: OK.

LEMON: Paula Zahn, always a pleasure. Thank you for joining us in the NEWSROOM today.

ZAHN: Thanks, Don.

LEMON: And we want to remind our views, tonight, "PAULA ZAHN" special, "From Saigon to Baghdad: Lessons Learned," it airs at 8:00 p.m. Eastern right here on CNN.

CHETRY: And the catch of the day catches up with a young fisherman -- the shocking video coming up in the NEWSROOM.

(COMMERCIAL BREAK)

LEMON: Hello, I'm Don Lemon, live at the CNN World Headquarters in Atlanta.

CHETRY: And I'm Kiran Chetry, in for Kyra Phillips. Thirty minutes and counting down to the closing bell. But things were looking up. And they still are, almost 50 points up there. We are watching the clock and we are watching the Big Boards. You're in the CNN NEWSROOM. And lighting political fires in Washington today. Nearly all of the big name presidential candidates turned out for one of the more high profile elbow-rubbing event of the political scene, the annual forum of the International Association of Fire Fighters, the first bipartisan forum of the '08 campaign. The candidates worked the pro- union crowd, pressing their support of and sympathy for organized labor.

But one person's name was not mentioned at that gathering, probably the candidate most closely linked to firefighters, and that is former mayor of New York City, Rudy Giuliani. He called it a scheduling conflict. But there is another reason that he gets the cold shoulder from some of the nation's first responders.

Our Candy Crowley has more on that and the state of the Giuliani campaign.

(BEGIN VIDEOTAPE)

CANDY CROWLEY, SENIOR POLITICAL CORRESPONDENT (voice-over): He is still the toast of the party. Rudy Giuliani is holding on to his head of the pack position, 34 percent of Republicans say they want him as their presidential nominee.

So what's to worry? Well, for starters, being on top means everybody is gunning for you. His honor is taking some incoming. After a to and fro over a speaking invitation, the International Fire Fighters union delivered a scorching indictment of Giuliani, accusing him of prematurely ending the search for remains at Ground Zero. "The fundamental lack of respect is unforgivable," wrote the president of the union. Giuliani responded that firefighters are his heroes.

RUDY GIULIANI (R), PRESIDENTIAL CANDIDATE: Some tend to be heavily Democratic unions. So you can have all kinds of agendas there, but it does nothing with -- for my bond with firefighters or what I would do for them if I were president of the United States.

CROWLEY: Also getting closer scrutiny, business dealings within Giuliani's security consulting firm. The trials and tribulations chez Giuliani, and the standard bugaboos, including his pro-abortion rights stand. This piece of history now circulates on YouTube.

GIULIANI: There must be public funding for abortions for poor women.

CROWLEY: While Giuliani still has more conservative and evangelical support than his Republican rivals, there are constant reminders that his views on most social issues are totally out of step with party orthodoxy. Even endorsements require the two-step.

SEN. DAVID VITTER (R), LOUISIANA: Obviously, I disagree with Rudy on some significant social issues and these are very important to me and to many people I represent. But after numerous personal meetings with the mayor, it's very clear to me that he's not running for president to advance any liberal social agenda.

CROWLEY: Still to come, the fine tooth comb dragged across Rudy's record prior to 9/11. Here's his version.

GIULIANI: I took a government that I believe was vastly out of control, spending too much money, not accountable enough, and I turned it had from a government with terrible deficits to government with surpluses, reduced the size of government in areas where we could make reductions.

CROWLEY: But critics remember an increasingly unpopular mayor who rode roughshod over opponents and ran the city with an iron fist. Let's just say the bloom is off the rose.

Candy Crowley, CNN, Washington.

(END VIDEOTAPE)

CHETRY: And of course, all the day's politic news is available anytime day or night at cnn.com/ticker.

LEMON: President Bush is heading back to Washington. He left Mexico a little while ago, the last stop on his five-nation trip to Latin America. At a news conference with Mexico's president, Mr. Bush said he thinks he can get an immigration bill through Congress despite strong opposition from within his own party.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: I think members of Congress are now feeling more comfortable that the country is committed which to the rule of law, which then makes some more open- minded to my argument which is that if we can have migration reform, it will make it less likely somebody will feel like they have to sneak across our border and therefore, take pressure off the border.

(END VIDEO CLIP)

LEMON: President Bush said his immigration reform plan will benefit both the U.S. and Mexico. He also said his reforms would improve security in both countries.

Remember the bridges to nowhere? You may have thought Alaska's pet projects died in Congress. Well, think again. CNN's Joe Johns has the latest.

(BEGIN VIDEOTAPE)

JOE JOHNS, CNN CONGRESSIONAL CORRESPONDENT (voice-over): Building a bridge connecting a mainly uninhabited island to Ketchikan in Alaska became a metaphor for raiding taxpayers in the last year. You'll remember the project became infamously known as one of the bridges to nowhere. In the face of growing opposition, Congress boldly said the so-called earmark for funding was just too much.

SEN. TOM COBURN (R), OKLAHOMA: That was an authorized earmark that doesn't pass the smell test.

JOHNS: But guess what, the project never did die. In fact, Congress still gave Alaska your tax money to pay for it.

ED FRANK, AMERICANS FOR PROSPERITY: It's like a horror movie where the villain just doesn't die. You think it's killed, you think it's killed, and it just keeps coming back from the dead.

JOHNS: So how did we get here? The Alaskan bridges became the ultimate symbol of what's wrong with the practice of earmarking. That's when Congress approves money for lawmakers' pet projects back in their home states. You'll recall two Capitol Hill heavyweights, Alaska Senator Ted Stephens and Congressman Don Young were pushing the bridges in their home state and they have a lot of sway.

It all built up to a huge congressional showdown. The Congress took on the two powerful Alaskans and said absolutely no to the earmarks for the bridges, but said Alaska could keep the money, $450 million, for anything it wants. And in Alaska, the governor decided to use the money for, guess what, the bridges to nowhere.

UNIDENTIFIED MALE: We've got to start protecting the taxpayers.

JOHNS: The watchdog group Americans for Prosperity devote a lot of their time trying to kill congressional pet projects. They toured 30 states, trying to bring a megaphone to call out what they see as the biggest examples of wasteful spending and that took them to Alaska.

TIM PHILLIPS, AMERICANS FOR PROSPERITY: And they want to spend $223 million of our tax money to connect this uninhabited island to that island in the middle that has about 50 people on it.

JOHNS: And when you look at it that way, it is, well, a pretty good deal for a few people. But if you don't live in this part of Alaska, you're wondering, what am I getting out of this? But what about the other bridge? It's supposed to connect a remote wilderness area to Anchorage. It's not dead either. And if it goes up, real estate developers are hoping this area will be wilderness no longer.

Basically, if they build it, people will come.

DARCIE SALMON, BRIDGE BOOSTER: Over here, we can offer half acre, acre lots, private well, private septic, recreational, lakes, rivers, streams, snow machine. They're going to want to come here.

JOHNS: So what we learned when we were there is that a lot of people who live in Alaska aren't completely sold on the idea of the bridges and don't like this kind of attention. There is opposition, especially to the bridge in Anchorage. So the fight goes on. But the bridges are not dead yet.

Joe Johns, CNN, Washington.

(END VIDEOTAPE)

CHETRY: And millions have taken them to fall asleep, to get some help falling asleep. But some sleep aids may have some very serious side effects. Now the government wants new warning labels on some popular sleeping pills. We're going to take a look at the risks of sleep walking, sleep eating, even dangerous allergic reactions all next in the NEWSROOM.

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LEMON: All right. You're looking at Air Force One about to land at Andrews Air Force Base. Of course, the president is just back from his Latin American trip, five countries in Latin America. His last stop was Merida, Mexico. Of course, he was talking immigration there. He also earlier in the week talked about alternative fuels as well. And now he comes back, surely to face questions about Alberto Gonzales. But that is the president returning from his trip in Latin America right now.

Why don't we head over -- as that happens, let's head over to Fredricka Whitfield with details on a developing story. What do you have for us, Fred?

FREDRICKA WHITFIELD, CNN CORRESPONDENT: Well, we've got some new images that are coming in out of Enterprise, Alabama. Remember, that was one of the cities hardest hit by that string of tornadoes just two weeks ago. Well, good news now. At the high school there, it is back to class.

A lot of kids getting off the school bus there. This morning, heading into class for the first time in two weeks since eight students were killed when they were inside Enterprise High School when a tornado came through and debris and roofs, as well as walls started tumbling down.

In all, 20 people were killed in -- across three states in those tornadoes that swept through two weeks ago. So good news. People are trying to resume to some kind of normalcy there at Enterprise High School in Alabama.

LEMON: Yes. That is, Fredricka. And thank you so much for that.

CHETRY: The FDA calling on drug-makers to add new warning labels to some popular sleeping medications. The labels would warn users of potential reactions, including conditions like sleep walking, sleep eating, even sleep driving. The warnings would apply to 13 different drugs, including brand names like Ambien and Lunesta. The complete list is available on cnn.com/health.

Our chief medical correspondent, Dr. Sanjay Gupta, has more now on one of the bestselling versions of these drugs.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN CHIEF 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. Some of the world's leading sleep experts say one possible cause is the popular sleep drug Ambien. DR. CARLOS SCHENK, MINN. SLEEP DISORDERS CTR.: Ever since Ambien came on the market, there were sporadic reports of sleep walking being induced by the Ambien. And then there are reports coming out about eating with the sleep walking induced by the Ambien.

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

JUDIE EVANS, INSOMNIA PATIENT: 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 elaborate meals and one time turning the oven up to 500 degrees. Suspecting something was wrong, her son stayed wake and 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 been cases of sleep driving, says Dr. Carlos Schenk, who led the studies linking Ambien with abnormal sleep behaviors. Dr. Schenk says that in sleep walking, 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 this: "It is difficult to determine with certainty whether a particular instance of sleep walking is drug induced, spontaneous in origin, or a result of an underlying disorder."

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 is an excellent medication. And for most people, it is very safe and well tolerated.

GUPTA: The manufacturer says if you find yourself sleep walking after taking Ambien, you should of course see your doctor.

Dr. Sanjay Gupta, CNN, reporting.

(END VIDEOTAPE) CHETRY: And Ambien's manufacturer, Sanofi-Aventis, has not responded to the FDA decision. But last year when we covered the story, this is what they had to say: "It is difficult to determine with certainty whether a particular instance of sleep walking is drug induced, spontaneous in origin, or a result of an underlying disorder."

They also say the labeling update is consistent with the commitment to ensuring that physicians and patients have information necessary to prescribe and use Ambien appropriately. The company says that sleep walking is rare, occurring in clinical trials at a rate of less than one in 1,000 patients.

LEMON: And some bad news in the battle against cancer. There could be fewer doctors to lead the fight in the years ahead. A new study predicts a shortage of oncologists by year 2020. It says that as the number of older Americans increases, demand for cancer doctors will increase, as well. And there could be a nationwide shortfall of up to 4,000 oncologists. The report appears in The Journal of Oncology Practice.

The pain of a cash withdrawal, grabbing money from the ATM never hurt so much. Stick around in the NEWSROOM.

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CHETRY: Police in Ohio have just charged a repeat offender with 128 felonies. The rap sheet ranges from burglary to witness intimidation. It is quite a crime spree, especially for a 13-year- old.

Mike Rowe of affiliate WSYX in Columbus reports.

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MIKE ROWE, WSYX REPORTER (voice-over): Mickie Brook is one of the victims.

MICKIE BROOK, SHOP ROBBED TWICE: It's not the way you want to start your day.

ROWE: Her coffee shop was broken into twice during a year long crime spree in Nelsonville.

BROOK: The first time, my registered drawer was empty and the second time, my register was gone.

UNIDENTIFIED MALE: It's shocking in a town our size. Very shocking.

ROWE: Now police say they've got their man or in this case, a 13-year-old boy. Andrew Riley (ph) is behind bars charged with 130 felonies.

UNIDENTIFIED MALE: He would break into businesses, he would also break into apartments, people he knew and knew what he could find. And he did it just -- and he broke a lot of windows just to have fun.

ROWE: When police searched the teenager's home, they found stolen video games and baseball cards.

(on camera): According to this police report, Andrew is also charged with intimidation. Police say he beat up a fellow student on the school bus because that student was going to testify against him.

UNIDENTIFIED FEMALE: It is just like they're out to get our whole family.

ROWE (voice-over): His mother insists that Andrew is not a bad kid. She even showed us this photograph of him playing basketball.

UNIDENTIFIED FEMALE: I'm not denying that he was guilty of some of it, possibly. But there's no way he was -- he did all of this stuff for the last year, year-and-a-half.

BROOK: I think that his parents need to be facing the felony counts.

ROWE: In fact, police tell me they might file child endangerment charges against the parents.

UNIDENTIFIED FEMALE: We did our best with him. We both work. The other kids have never been in any trouble or anything. He got in with the wrong crowd of kids.

ROWE: Whatever the reason, he's a seventh grader who finds himself in very big trouble.

(END VIDEOTAPE)

LEMON: All right. That was our affiliate reporter Mike Roe. OK, look at that. Rule number one with sharks, keep fingers and toes away from the mouth at all times. Just take a look at that. This could happen. Ow. This young guy had just landed the four-foot shark at Delray Beach, Florida, when one tried to take the hook out. Chomp. A little bit of shark pay back. Onlookers eventually pried the shark's mouth open and freed the hand. The victim was treated for his injuries and is OK right now.

CHETRY: I caught a shark once, accidentally, a very tiny one. And I got messed up by the skin because the skin is sharp like sandpaper too.

LEMON: What was his name?

CHETRY: I didn't name him, I just threw him back.

(LAUGHTER)

CHETRY: Hoped to get a fish next time. Well, from a shark bite to a machine grip, another story about curious kids putting their hands where they shouldn't. Leland Vittert of Orlando affiliate WFTV reports. (BEGIN VIDEOTAPE)

LELAND VITTERT, WFTV REPORTER (voice-over): The pain on the little girl's face says a lot. Unable to move, she can only stand as firefighters work to free her from the ATM. More than three hours into the ordeal, the 9-year-old's hand came out from the cash slot. The relief on her face was almost instant.

UNIDENTIFIED FEMALE: It hurts a lot.

VITTERT: Angelica Santiago's (ph) hand still hurt a lot. The ice pack helped but her eyes still showed the hours of crying from what was supposed to be a quick trip to the store.

WILLIAM SANTIAGO, FATHER: Well, she couldn't get her hand out, apparently. I don't know, there was like a piece of metal that was stuck in there that was preventing her hand from coming out.

VITTERT: Fire crews descended on the store's parking lot, worried her hand might have been severed, the stretcher waited outside. Luckily it wasn't needed.

LT. JON HASKETT, ORLANDO FIRE DEPT.: We just had to dismantle the machine and we put some soap on her hand and worked it until it came free.

VITTERT: Much to the relief of the girl's parents looking on in the child in so much pain and unable to help is one of life's most difficult moments.

MARIA SANTIAGO, MOTHER: I can do nothing about that because they are emergency, can do nothing, I can't do either. So I was scared that something worse would happen.

(END VIDEOTAPE)

CHETRY: Lucky little girl.

LEMON: Goodness, huh? Isn't that amazing?

CHETRY: Yes. It looks like she was carrying a popsicle on the way out. So all's well that ends well.

LEMON: Well, look who's standing by right now. Wolf Blitzer to tell us what's happening in "THE SITUATION ROOM."

Hi, Wolf.

WOLF BLITZER, CNN ANCHOR: Hi, guys. Thanks very much. Coming up right at the top of the hour, the attorney general wants to talk things over, but some just want his head. After admitting mistakes were made over the firings of those U.S. attorneys, Gonzales now says he'll meet privately with lawmakers. One of them is the chairman of the Senate Judiciary Committee, Patrick Leahy, what might Leahy want to know? I'll ask him, that's coming up live. Also, a few weeks into the security plan for Iraq's capital, is Baghdad any safer? I'll ask the chief military spokesman in Iraq, U.S. Army Major General William Caldwell. That's coming up, as well.

And which party do you think will put the next president in the White House? Democrats or Republicans? A fresh poll shows one party leading the other two to one. We're going to tell you all about that poll and a lot more right here in "THE SITUATION ROOM."

Back to you.

LEMON: And, Wolf, if we knew that question, man, I would be a gazillionaire. Thank you. We'll be watching "THE SITUATION ROOM."

CHETRY: The closing bell and a rap of the action on Wall Street, all of that straight ahead.

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