Return to Transcripts main page
American Morning
Asian Sell-Off; Another Tumble; Deadly Exit; Brewing Battle; Your Religious IQ; Your Money
Aired March 14, 2007 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR: Global losses. Asian market nose dive this morning. Can Wall Street shore up after trouble in the housing market?
ALINA CHO, CNN ANCHOR: Texas showdown. Lawmakers defy the governor over a mandatory vaccines for schools school girls.
O'BRIEN: Flash floods. A dramatic rescue. A threat of more downpours in a stormy Wednesday.
CHO: And safe exit. Georgia finally takes action today at the scene of the deadly bus crash. We're live from Hong Kong, Atlanta, Washington and New York on this AMERICAN MORNING.
O'BRIEN: Good morning to you. Wednesday, March 14th. I'm Miles O'Brien.
CHO: And I'm Alina Cho. Soledad is traveling back from assignment in Mexico. Thanks for being with us.
O'BRIEN: Welcome to another day of scrambling for your nest egg. Once again this morning, those markets in Asia closing down, way down. This time, it all began here on Wall Street. The big downward driver, marginal mortgages and all those foreclosures. The Dow opens today down nearly 2 percent. It is an unhappy happy hour in the Pacific Rim right now. Losses from 2.5 percent to 3 percent in markets from Tokyo, to Hong Kong, to Sidney.
CNN's Eunice Yoon is in Hong Kong, Ali Velshi watching a jittery Wall Street and Gerri Willis with more now on the fragile housing market and how it is laying the foundation for trouble. We begun now with Eunice.
Good morning, Eunice.
EUNICE YOON, CNN CORRESPONDENT: Good morning, Miles.
The companies that bring you Japanese cars and Korean plasma television sets were in the spotlight in Asian markets today as investors here worried that your spending habits might soon change.
(BEGIN VIDEOTAPE)
YOON, (voice over): There's an old saying, the consumer is king. And for Asian companies, that consumer is American. DARIUSZ KOVALCZYK, CFC SEYMOUR: If the American consumer doesn't have money to spend, then these exports from around the world into the U.S. will also decline. And this will be a serious drag on global B- to-B growth.
YOON: But troubles are emerging in the U.S. housing market, especially with sub-prime mortgages, loans to home buyers with less than stellar credit. Investors in Asia have growing concerns that Americans may slow their spending.
KOVALCZYK: I'm increasingly worried because it seems that problems with sub-prime mortgages are spilling over to the general economy. There is a rising risk that Greenspan was right.
YOON: The former chief of the Federal Reserve has said a recession in the U.S. later this year is a possibility. Disappointing retail sales and more frequent defaults on mortgages are feeding those concerns. And the worry shook Asia's stock markets Wednesday, with investors still jittery after a 9 percent plunge on the Shanghai index weeks ago helped to spark a global sell-off.
UNIDENTIFIED MALE: Obviously a lot of the hedge funds have exposure to the U.S. housing cycle and it will obviously impact both the risk appetite, as well as the actual flow to the region, if they're taking losses elsewhere.
YOON: Property analysts here say America's housing troubles shouldn't directly affect real estate markets elsewhere in the world, but it could have a big indirect effect. Giant financial firms could grow more wary of granting loans to consumers all over the world, something they've been doing to beef up their profits, money that has been feeding spending worldwide.
(END VIDEOTAPE)
YOON: And financial firms like HSBC and Citibank have been making a big push into the countries out here to power their earnings growth.
Miles.
O'BRIEN: Eunice, any indication how long the sell-off with last? When trading opens again tomorrow, do they think there will be more red ink?
YOON: Well, a lot of people here are saying that if you have any investments or if any of your portfolio is in the Asian markets, you should just hold on to your hats because they're saying here that the Asian economies are growing very fast. They are a good buy for the long-term. However, the volatility is likely to continue, at least until the end of March. And just because of so much uncertainty in the U.S. housing markets, the markets here could see even more jitters.
O'BRIEN: Eunice Yoon live from Hong Kong. Wall Street traders waking up with a red ink hangover this morning after the second worst day of the year yesterday. Could that mean they will be buying today? Ali Velshi is watching that.
Good morning, Ali.
ALI VELSHI, CNN CORRESPONDENT: Good morning, Miles.
And that all depends on whether this contagion continues. Investors are very worried about what this sub-prime mortgage scare could mean for the economy. Now sub-prime mortgages are those given to people with bad credit.
And over the last several years, banks have given mortgages to people with weak credit who wouldn't in the past have qualified for a mortgage. They did that because it was good business, but the risk has caught up with them and investors are paying the price for them. The Dow lost 1.7 percent. As you said, the second worst day this year.
Now sub-prime borrowers pay a higher interest rate, which makes more money for the bank. But it means more risk. And lenders figured that it was worth the risk.
What those banks didn't count on is how many customers who were lured in by those initially low teaser rates wouldn't be able to make their payments once the adjustable rates rose. Now sub-prime loans make up 20 percent of the total mortgage market and mortgage defaults have now hit record highs. Those high-risk lenders are getting stuck holding the bag and at least a couple of them could face bankruptcy.
Here's the bigger problem. The mortgage business is very interconnected. You have a mortgage and a bank, but that mortgage may have been bundled and sold as an investment to someone else. That's because sub-prime mortgages pay better interest. So buying a bundle of mortgages is like buying a high-paying bond. But with high return comes high risk. And major banks, well, we're talking about billions of dollars at risk right now.
Still watching European markets doing a little better than Asian markets, but they're all off. London, Frankfort and Paris all off about 1.5 percent.
Alina.
CHO: Big story, Ali, thank you very much.
Other headlines happening this morning.
A huge explosion rocks Kabul, Afghanistan. At least 13 people killed, another 15 injured. Police tell the Associated Press it looks like an accident, not terrorism, caused by gunpowder in an ammunition shop.
In Iraq this morning, around 700 American troops are on the move to Baquba in the Diyala province. That's northeast of Baghdad. They're cracking down on Sunni insurgents who may have fled there ahead of the security crackdown in Baghdad.
In India this morning, two men are in custody for last month's deadly train blast. Sixty-eight people were killed on the train running from New Delhi to Pakistan. Police accuse the suspects of selling the suitcases packed with explosives that were used in the attack.
President Bush wraps up his Latin American trip today with a joint news conference with Mexico's President Felipe Calderon. They shared dinner last night in Mehdia (ph). President Bush says the U.S./Mexican border should be a source of unity, not division. CNN will bring you their news conference today at 12:10 Eastern Time.
Miles.
M. O'BRIEN: The attorney general facing more heat today. A lot of calls for him to resign after a mass firing of those U.S. attorneys. Alberto Gonzales told reporters mistakes were made when eight federal prosecutors were pink slipped, but he denies it was all a political vendetta. And while he says he is responsible, he is rejecting calls to step down. Democrats say they will subpoena key White House players for hearings. We will talk with the attorney general himself at 7:15 Eastern. Stay tuned.
Alina.
CHO: Happening in America.
A scramble to fix faulty pumps in New Orleans. The AP is reporting that the Army Corp. was warned the pumps were defective. But guess what? Installed them anyway in the rush to beat hurricane season last year. Now all 34 pumps are being fixed.
In Texas, the blows to given Rick Perry's order to vaccinate school girls against HPV. The Texas house approved a bill keeping the vaccine off the list of required shots for school attendance. The vaccine protects against certain strains of Human Papillomavirus or HPV. That's a sexually transmitted disease that can cause cervical cancer. The bill still needs final approval of the Texas house and senate.
In Los Vegas, a two-acre brush fire in the wetlands area forcing people to evacuate their homes. The fire sent thick, black smoke into the air. Officials think a fire in that same area a week ago was deliberately set.
And listen to this one. In Florida, one thing you just don't want to do, put your hand in a live shark's mouth. Gregory Colon (ph) did just that. And guess what? Well, the shark bit him. Poor move, Gregory. He and his friends caught the shark on Delray Beach. It bit him when he tried to take the hook out of its mouth. Greg was shaken, but we're told he's otherwise OK. And the shark, well, it was released.
Miles.
O'BRIEN: The effort to get the hook might leave him with a hook if he's not careful, if you know what I mean.
In Texas this morning, a search underway for a man swept away by flood waters after a heroic rescue effort. It happened near Austin. A flash flood trapping an elderly couple in their car. As firefighters went in, the swift current swept the couple away. Rescuers were able to save the woman but they're still searching for the man this morning.
Alina.
CHO: Well, Chad's tracking that extreme weather in Texas this morning. He has the latest coming up.
Plus, changes today after a deadly bus crash. We'll see if they go far enough to make the road safe.
And sometimes it seems like there's a Starbucks on every corner. Well, that's the case in New York. Find out why this one is causing outrage near one of the world's greatest landmarks.
You're watching AMERICAN MORNING. The most news in the morning is on CNN.
(COMMERCIAL BREAK)
CHO: Welcome back. The most news in the morning right here on CNN.
Wall Street is watching heavy losses in the overseas markets overnight. The Dow opening 240 points lower.
And a powerful explosion in Kabul, Afghanistan. At least 13 people are dead. It happened at an ammunition shop. Officials say there are no links to terrorism.
Miles.
O'BRIEN: In Georgia this morning, they're making some changes in the way they design some dangerously confusing left-hand exit ramps. It's happening two weeks after that fatal bus crash in Atlanta. You'll remember a bus carrying a college baseball team mistook an exit ramp for a high occupancy vehicle lane. AMERICAN MORNING's Greg Hunter live from Atlanta at that very intersection with more.
Good morning, Greg.
GREG HUNTER, CNN CORRESPONDENT: Hey, good morning, Miles.
And this is the ramp where this bus came up. They're making all kinds of changes today on the sign that's here and down the highway. But the bigger question is, what changes should they make to make this part of this Georgia highway safer?
(BEGIN VIDEOTAPE)
HUNTER, (voice over): On the I-75 HOV ramp in Atlanta, where the fateful accident occurred, the word "exit" will be added to the HOV diamond. The stop ahead signs will be bigger and painted on the road. But one safety expert says drivers should be warned earlier they won't be exiting on the right.
FRED HASCOM, TRANSPORTATION RESEARCH CORPORATION: The problem is drivers don't expect left-hand exits.
HUNTER: Fred Hanscom, who's worked on highway safety issues for state agencies, including the Georgia DOT, says there should be a yellow left exit sign a half mile before the ramp, not just the HOV diamond and the I-75 sign that's there now.
HANSCOM: It's confusing in that it conveys to a driver you just follow this and you don't have to worry about a left-hand exit.
HUNTER: And going into the ramp, what Hanscom says is the most badly miss marked of all the signs.
This lane should be marked I-75 with the diamond over here.
HANSCOM: And that should be right over the lane that does go to I-75, which is right where my pencil is.
HUNTER: And this sign should say, exit left in yellow?
HANSCOM: Correct.
HUNTER: Black letters. And there should be an arrow pointing right down here?
HANSCOM: That's correct.
HUNTER: Georgia's Department of Transportation insists the current signs already meet safety standards, but is making the signs bigger and more visual to avoid another horrible accident.
HAROLD LINNENKOHL, GEORGIA TRANSPORTATION COMMISSIONER: We've realized the need that, OK, there's some of our system that has been in place for a long time that we could even do more.
HUNTER: What's need, says Hanscom, is more and better signs that drivers can see early enough to avoid serious accidents. He also says sometimes it takes a big accident like this before authorities act to improve sign safety.
In your opinion it's been miss marked for years?
HANSCOM: Right. It has indeed.
(END VIDEOTAPE)
HUNTER: Now they're just not changing the signs here at this exit ramp. They're actually going to start, according to the Georgia Department of Transportation, I talked to one of their representatives this morning, they're going to be changing the signs down the highway, something like you saw in the piece, where the I-75 black diamond, they're going to have exit approaching. Also down at the bottom of the ramp, they're making changes to the overhead signs eventually.
Some of the things they're going to do today is they're going to take this sign, which is about 24 inches tall. They're going to make it 48 inches tall. They're going to be changing the striping on the road. They're going to be adding barriers. They're going to be adding bigger stop ahead signs today. They should get a lot of this stuff done today. Some of the bigger things, the overhead signs, it's going to take them a little while to do. But they are working on this problem here in Georgia.
Miles.
O'BRIEN: What about putting a flashing light where you're standing? You know, some sort of a traffic signal and maybe even rumble strips? Have they talked about that?
HUNTER: They are doing some of the rumble strips. Also some of the, you know, things, the elevated things on the highway that make your car sound like it's going over something. Also on the other side, which I can't show you because we don't really have it lit, but they're going to have, you know, fluorescent signs, arrows pointing out on both sides. They're going to be doing some pretty extensive signage here at this off ramp and also down the highway and at the top of the ramp. They're going to be doing quite a bit, according to the GDOT representative I talked to this morning.
O'BRIEN: It's too bad it's all happening after that terrible accident.
Greg Hunter, thank you very much, live from Atlanta.
It's about quarter past the hour now. Chad Myers at the CNN Weather Center, not far from where Greg is standing right now.
You're watching some severe rain in Texas. Good morning, Chad.
(WEATHER REPORT)
CHO: A battle brewing for Starbucks in Beijing's forbidden city. Some people want the coffee giant out of the historic site. CNN's John Vause explains.
(BEGIN VIDEOTAPE)
JOHN VAUSE, CNN CORRESPONDENT, (voice over): In the scrolling grounds of China's forbidden city, once home to the imperial palace of the Ming and Ching dynasties, one small shop is in the midst of a brewing controversy -- Starbucks. That poster child for American mass marketing. And a growing number of Chinese want it banished.
"The forbidden city should preserve its uniqueness," says this woman.
Ever since it opened more than six years ago, Starbucks has been a contentious presence in one of China's most revered historical icons. DAVID SHAMBAUGH, POLITICAL ANALYST: And some of these symbols of western cultural influence, Starbucks is just the tip of the iceberg, do rub up against Chinese nationalistic sensibilities. That's what we're seeing. It's that simple.
VAUSE: Earlier this year, the trademark green sign was removed to reduce the store's visibility after Rui Chenggang, an anchor on state-run television, began an online campaign to have the coffee shop closed for good.
RUI CHENGGANG, ANTI-STARBUCKS CAMPAIGNER: You can still tell it is a Starbucks. And when you tour around the forbidden city, you see hundreds of cups with the big Starbucks logo on it, you know, all around. To me, it spoils the fun.
VAUSE: And now complaints of latte imperialism have reached the national people's congress, the annual session of parliament. "As long as it stays in the imperial palace, it poses a challenge to our traditional culture," said lawmaker Jiong Hongbin who submitted the motion to congress to have Starbucks closed.
This is much more than a store with a coffee cup. With almost 200 stores already in China's big cities, Starbucks is aiming to make this country its largest market. And bad publicity is bad for business. The company says it's aware of the complaints but adds, "many tourists find our respectful presence a welcome place of rest."
VAUSE: Over the years, the rent from stores like Starbucks have helped cover the cost of the upkeep and renovations to the almost 600- year-old forbidden city. But soon here it could be one Starbuck's to go.
John Vause, CNN, in the forbidden city, Beijing.
(END VIDEOTAPE)
O'BRIEN: Coming up, a house of cards. How the fragile housing market is laying the foundation for trouble on Wall Street. Gerri Willis will break it down brick by brick.
And, quick, can you name all for Gospels? Can you? Can you do it?
CHO: Maybe.
O'BRIEN: We'll have the answer for you as we test your Bible literacy. A pop quiz is ahead. And, don't worry, we grade on the curve, a news curve.
You're watching AMERICAN MORNING.
(COMMERCIAL BREAK)
CHO: The United States may be the most religious country in the western world, but how much do we really know about region? Well, according to a new book, not much. The book is called "Religious Literacy." It says Americans are basically ignorant about God. Faith and values correspondent Delia Gallagher here now to put that religious IQ test to Americans.
And, you know, before we get to your thoughts, Delia, we did put that test to everyday Americans, got a sampling of what they said. And I understand the most incorrect answer was how many of the Gospel writers can you name. So we're going to listen to some of the answers first.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Michael, maybe, right?
UNIDENTIFIED FEMALE: I know them, but I just can't name them all.
UNIDENTIFIED MALE: OK, I can't do this.
UNIDENTIFIED MALE: All right.
UNIDENTIFIED MALE: No, that's what I meant, like Gospel writers, don't know.
(END VIDEO CLIP)
CHO: All right. So the old, I know them but I can't name them right now answer.
GALLAGHER: Yes, quite remember.
CHO: That doesn't quite cut it. But, all right, so if we're the most religious country in the western world but we don't know that much about religion, where's the disconnect here?
GALLAGHER: Yes, it's interesting.
CHO: Yes, what's going on?
GALLAGHER: It's interesting because, you know, a lot of people go to church. We always talk about how so many Americans believe in God and so on and yet some of the research is showing that we really don't know a whole lot of much. And, you know, some of the reason I think -- we don't teach it in our schools, obviously, in the public schools. There's a lot of fear of litigation. It's fraught with all kinds of problems about textbooks and so on. But there's also the fact of American religion and how it's grown up in this country, you know, the idea of a personal relationship with Jesus. Less emphasis on doctrinal or historical facts.
CHO: So more emphasis on loving God versus the teachings of the Bible?
GALLAGHER: Right. And that you are saved through your personal relationship. You don't need to have anything else. That's been very much a hallmark of American religion. CHO: Well, and I think also you don't have to go to church every Sunday to know that sermons these days focus less on Bible verses and more on everyday life.
GALLAGHER: Yes.
CHO: So, you know, what does it mean for you, right?
GALLAGHER: Yes, it's symbolic also of the larger society, where we're going, and it's all about you and how your feelings and that sort of thing.
CHO: Imagine that.
GALLAGHER: So, you know, religion follows along with that.
CHO: All right. Delia Gallagher, our faith and values correspondent, thank you very much.
GALLAGHER: You're welcome.
CHO: Miles.
O'BRIEN: All right. Let's talk about the markets once again. And let's talk about the link to the housing market. Gerri Willis is here. She covers that for us.
Gerri, good to have you with us.
Give us a sense, you know, we've been talking about the housing market and the foreclosure issue.
GERRI WILLIS, CNN CORRESPONDENT: Huge.
O'BRIEN: First of all, how bad is the problem?
WILLIS: The problem is really bad. I know a lot of people out there said, New Century Financial, I've never heard of that company. How important can this be? Well, the really is, this is a very important company in its sector. It lends money to people who have shaky credit histories. And it's in big, big trouble. Under investigation now.
But it's not the only one. There are two dozen companies that are either in trouble in that sector or they've sold themselves out to somebody else because they were having problems. And you should know that this also affects Wall Street brokerages, major banks, who also do this business or buy the debt. Investors have a piece of the action. As Ali was just saying earlier, through mortgage-backed securities.
O'BRIEN: Now these loans, a good chunk of these so-called sub- prime loans, go to people who have credit issues and it at least gets them in the housing market, which is good, but it has put them in a very difficult position. If you're watching this all from the sidelines and your credit is fine, should you be worried about all this?
WILLIS: Yes, actually you should be and here's why. The lenders out there are tightening credit. That means it's going to be harder to get a loan this spring, maybe not just for buying a house, but also for borrowing on your house. So maybe you were going to take out a home equity line of credit or a home equity loan to pay for college fees for your kid or maybe for some kind of health care issue that you have. That could all be harder. It could be more difficult. And, of course, it's going to be much more difficult to get adjustable rate mortgages, which are really in the spotlight.
But, Miles, you make a really good point here. We're on the verge of throwing out the baby with the bath water. There were some really good products out there that went to folks, like ARMS, that worked well in some circumstances that may become unavailable.
O'BRIEN: That's unfortunate. Give us a sense, then, what this means for sellers in particular at this point.
WILLIS: Yes.
O'BRIEN: You know, prices are going down. The availability of money, that puts them in a difficult place, doesn't it?
WILLIS: Absolutely. There are going to be fewer buyers out there, most likely, and you're going to have a harder time selling this spring. Of course, big expectations out there that the difficulty would continue through the third quarter or the fourth quarter of this year. What's going on right now in the mortgage industry could make that difficulty last even longer.
O'BRIEN: all right, Gerri Willis, thank you for breaking it down for us. Appreciate it.
WILLIS: You're welcome, Miles.
O'BRIEN: Top stories of the morning are coming up next.
A new twist in Texas over the HPV vaccine. The latest wrangling just ahead.
And the war over the war. Liberals turning up the heat on lawmakers they thought were on their side.
And new word on the supposed tomb of Jesus and his family.
You're watching AMERICAN MORNING. The most news in the morning is right here n CNN.
(COMMERCIAL BREAK)
O'BRIEN: Welcome back to the program. Wednesday, March 14th. I'm Miles O'Brien.
CHO: And I'm Alina Cho. Soledad has the day off. Thanks for joining us. O'BRIEN: Some of the big stories we're watching for you right now.
(NEWSBREAK)
O'BRIEN: Also this morning, the anti-war movement is waging a new kind of protest campaign. They're targeting politicians who, in theory, at least, are on their side.
Why the friendly fire?
AMERICAN MORNING'S Bob Franken on Capitol Hill with an explanation.
Good morning, Bob.
BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Good morning, Miles.
Well, maybe not new. It sort of reminds one of the '60s and '70s sit-ins. But they're calling it occupations now. And the adversaries are the friends, friends who would probably be calling it irritation.
(BEGIN VIDEOTAPE)
FRANKEN (voice over): Anti-war demonstrators barge into the offices of Maryland Democratic senator Barbara Mikulski. Mikulski says she's against the war, but apparently not enough for the protesters. They want her to vote to withhold supplemental funding for troops in Iraq.
UNIDENTIFIED FEMALE: Peace now!
FRANKEN: House Speaker Nancy Pelosi is also normally a champion of these groups, but last weekend, there they were, camping out in front of her home in San Francisco.
REP. NANCY PELOSI (D-CA), HOUSE SPEAKER: I understand the frustration they have with the war that appears to be without end. I believe that what we are doing here will bring that war to an end. They don't understand that yet.
FRANKEN: Anti-war demonstrators say it's the Democrats who miss the point.
GORDON CLARK, PEACE ACTION: They claim to vehemently oppose the war, they regularly criticize the war, and yet they continue to vote for funding for the war.
FRANKEN: Congressman Rahm Emanuel, who led his Democratic Party to victory in the House by making Republicans defensive about Iraq, found himself on the defensive on the same subject.
UNIDENTIFIED CROWD: Troops home now!
REP. RAHM EMANUEL (D), ILLINOIS: Thank you. FRANKEN: Many Democrats are not taking well to this at all. Like David Obey, long the liberal's liberal, who was caught on tape confronting a protester and probably wishing that YouTube had never been invented.
REP. DAVID OBEY (D), APPROPRIATIONS COMMITTEE CHAIRMAN: The liberal groups are jumping around without knowing what the hell is in the bill.
(END VIDEOTAPE)
FRANKEN: They say that they're going to continue these guerrilla tactics against people who would consider themselves their friends -- Miles.
O'BRIEN: Bob Franken, thank you very much -- Alina.
(NEWSBREAK)
(COMMERCIAL BREAK)
CHO: The most news in the morning right here on CNN. Here is what we're watching.
Wall Street watching a steep drop on financial markets around the world. Hong Kong, Tokyo, Sydney all falling.
And the U.N.'s chief nuclear inspector snubbed in North Korea today. Mohamed ElBaradei was told North Korea's top negotiator was too busy to meet with him -- Miles.
O'BRIEN: James Cameron's claim that he found the tomb of Jesus and his family may have hit a scholarly iceberg. An expert on such matters in Jerusalem says the filmmaker made a key mistake reading one of the inscriptions on the tombs.
CNN's Ben Wedeman live from Jerusalem with more.
Hello, Ben.
BEN WEDEMAN, CNN INTERNATIONAL CORRESPONDENT: Hi, Miles.
We are standing in front of Jerusalem's Old City, which many Christians believe is where the tomb of Jesus Christ is located. Now, Mr. Cameron and the makers of that documentary, in fact, claimed it was over there, that's where the tomb is. That's just one of the assumptions that many people here have argued with. And now scholars are coming forth and saying that those theories, like the Titanic, are sinking fast.
(BEGIN VIDEOTAPE)
WEDEMAN (voice over): These simple stone boxes know as ossuaries are at the heart of the controversy, the subject of the documentary, "The Lost Tomb of Jesus". The filmmakers, Simcha Jacobovici and James Cameron, of "Titanic" fame, contend that the ossuaries contained the bones of Jesus, Mary, Joseph and Mary Magdalene. The first three, apparently common Jewish names at the time, but the clincher here is the Greek inscription on one of the ossuaries that the documentary claims says Mary-Ahm'-Nay.
JAMES CAMERON, "THE LOST TOMB OF JESUS": Mary-Ahm'-Nay is, according to certain Christian texts, the Acts of Philip and the Gospel of Mary Magdalene, Mary-Ahm'-Nay is the name of Mary Magdalene.
WEDEMAN: But in a recently published paper, biblical scholar Stephen Pfann argues the inscription actually says Mary and Madda (ph). He suggests it may be time for the filmmakers to go back to school.
STEPHEN PFANN, UNIVERSITY OF THE HOLY LAND: I would like to take these -- these people, Simcha Jacobovici and James Cameron, and give them a chance to be in our university for a semester and sit down and study through so they can really do the research they need to do a documentary properly with all of the scientific facts.
WEDEMAN: Most Christians believe that the tomb of Jesus is in Jerusalem's Church of the Holy Sepulcher, while the ossuaries at the center of this storm were found here in a tomb of the city's southern suburbs. Pfann doesn't dispute the filmmakers' claim that they found the tomb of Jesus. It's just not the right Jesus.
PFANN: I would say this is probably what we would call kind of another brand of science fiction. And what we have in this tomb, yes, is the tomb of another Jesus, but it certainly isn't Jesus of Nazareth.
(END VIDEOTAPE)
WEDEMAN: And, of course, this film challenges many beliefs held by many Christians, hundreds of millions of them for hundreds of years. And therefore, it's no surprise, Miles, that it has been challenged by many biblical scholars -- Miles.
O'BRIEN: No surprise, indeed. I suspect this is not the final word, though.
WEDEMAN: No. I think we can expect even more scholars to come forth and dispute the findings. In fact, what's interesting is that when the documentary was originally shown, it included many biblical scholars who were interviewed for the documentary, and they have subsequently come out and said that even though they contributed to that documentary, they do not agree with the basic assumptions the documentary made -- Miles.
O'BRIEN: Ah, the old out of context thing. All right.
Ben Wedeman in Jerusalem.
Thank you -- Alina.
(NEWSBREAK)
(WEATHER REPORT)
(COMMERCIAL BREAK)
O'BRIEN: The fall of the stock market has investors concerned about what may be ahead for them. There is an understatement of the morning. Are the concerns overblown, though?
It's a few minutes before the top of the hour.
Ali Velshi, you don't look worried. Are you OK?
ALI VELSHI, CNN CORRESPONDENT: Yes, and a lot of people -- there's -- I'm OK. And there are a lot of people who are saying maybe we shouldn't be worried. Let me -- you know, let me give this to you and see what you make of it.
O'BRIEN: Don't worry, be happy.
VELSHI: Don't worry, be happy.
(CROSSTALK)
VELSHI: Well, not all -- it depends who you are about being happy. Here is what we know.
Lots of mortgages were given to people with less than perfect credit. Many of them got initially low rates, and when that initial period expires, the rates adjusted and they couldn't pay. Late mortgages or late payments on mortgages are at their highest level in seven years. And until now, homeowners who were having trouble making payments could have at least sold or refinanced their homes for cash. But with the home prices dropping as they have been, that's not an option.
So, some homeowners are left with mortgages they can't pay on homes that are worth less than their mortgages, and they've defaulted. By one estimate, 1.5 million Americans are expected to lose their homes through foreclosure.
Now, at least one major subprime lender is in danger of going under. And there are a number of others who are in big financial trouble. And some very big banks who bought bundles of those mortgages on the secondary market could also face huge losses.
Now, the result of all this is that people with poor credit are going to have a tougher time getting mortgages. And if they do get mortgages, they're going to pay more for them, and that means they'll have less money to spend on other things.
And more than the worries about the banks, that's what really has got investors here and abroad worried. That's why we saw losses on Asian markets overnight, that's why we're still seeing losses in the European market. And the opening for the Dow, the futures are indicating that it is going lower, as well.
O'BRIEN: All right. That actually does worry me the way you put that out, because what you're talking about is a real fundamental issue here. Housing in this country, especially at that end, has such a ripple effect through all...
VELSHI: It employs a lot of people and it gives people the wealth that they don't get through their jobs. If you earn $10 an hour or $15 an hour, you're not getting rich off your job. You might get rich if you have a property. You spend that money, it employs people.
That's -- this is not a problem with subprime mortgages. This is a problem...
CHO: Well, and fewer people getting mortgages, fewer houses sold, too.
VELSHI: That's right. That's right. It affects everybody.
CHO: Right.
VELSHI: That's why it's a bit of a concern.
O'BRIEN: But you, you're not worried. All right.
VELSHI: Not just yet.
CHO: Cool as a cucumber.
O'BRIEN: All right. Thank you, Ali.
VELSHI: Thank you.
CHO: All right. Some other headlines of the morning.
(NEWSBREAK)
(WEATHER REPORT)
O'BRIEN: Global losses. Asian markets nosedive this morning. Can Wall Street shore up after the trouble in the housing market?
CHO: Under fire. Democrats are calling for Attorney General Alberto Gonzales to resign. We'll talk to the attorney general coming up.
O'BRIEN: Texas showdown. Lawmakers defy the governor over a mandatory vaccine for schoolgirls.
CHO: And flashfloods. A dramatic rescue. A threat of more downpours on a stormy Wednesday.
We're live from New York, Washington and Mexico on this AMERICAN MORNING.
O'BRIEN: Good morning to you, Wednesday, March 14th. I'm Miles O'Brien.
CHO: And I'm Alina Cho. Soledad has the morning off.
Thanks for being with us.
O'BRIEN: It's not a pretty picture for your portfolio this morning. The Asia markets are closed and traders there are licking their wounds.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.voxant.com
