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American Morning
U.S. Attorney Firestorm; Mortgage Meltdown; Caught on Tape; Tattooed in Baghdad
Aired March 22, 2007 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOLEDAD O'BRIEN, CNN ANCHOR: Campaign announcement. John Edwards and his wife, Elizabeth, are holding an urgent news conference today. New questions about her health now surfacing.
MILES O'BRIEN, CNN ANCHOR: Firing fight. The Senate deciding today whether it might force White House officials to go on the record about fired U.S. attorneys.
S. O'BRIEN: Medical battlefield. Mold and leaks and even bats now making the lists of new problems that have been found inside veterans hospitals.
M. O'BRIEN: And new fallout today for a Chicago cop caught on tape kicking and punching a female bartender.
We're live from South Africa, New York and North Carolina on this AMERICAN MORNING.
S. O'BRIEN: Good morning, everybody. Welcome. It is Thursday, March 22nd. I'm Soledad O'Brien.
M. O'BRIEN: And I'm Miles O'Brien. Thanks for being with us.
S. O'BRIEN: Oh, those pictures of the cop hitting that woman are remarkable.
M. O'BRIEN: Yes, that's something.
S. O'BRIEN: We'll get to that in just a moment.
We begin, though, with a developing story. We're expecting an announcement at noon today from the Democratic presidential candidate, John Edwards, and his wife, Elizabeth. Now you'll remember she's recovering from breast cancer. It was discovered in the last days of the 2004 campaign.
John Edwards left the campaign trail on Monday to join his wife as what was described as a routine appointment. Now doctors called her back for a follow-up on Wednesday. Hence, this press conference.
The Edwards are going to appear together at this news conference in Chapel Hill. Sources are telling CNN not to assume the worst. And "The New York Times" this morning is reporting the announcement will at least temporarily affect John's campaign for president. Again, the news conference is at noon Eastern. CNN is going to carry that live when it happens. Miles.
M. O'BRIEN: In Washington, that legal tug of war between the White House and Congress nears a breaking point this morning. In the Senate today, another vote slated to authorize, though not issue, subpoenas for some of the staffers closest to President Bush. CNN's Dana Bash is on Capitol Hill.
(BEGIN VIDEOTAPE)
DANA BASH, CNN CORRESPONDENT, (voice over): Hours after the president warned them not to do it, House Democrats defied him and authorized subpoenas for Karl Rove and other top White House aides.
UNIDENTIFIED FEMALE: In the opinion of the chair, the ayes have it.
BASH: Democrats flat out rejected the White House proposal for Bush aides to talk to lawmakers in private with no oath and no transcript. But the House Judiciary chairman promised not to issue the subpoenas unless he has to. He called it leverage, a backup plan.
REP. JOHN CONYERS, (D) JUDICIARY COMMITTEE CHAIRMAN: To hold these subpoenas in advance and hope that we will continue the discussions. So far, the discussions have been very disappointing.
REP. LINDA SANCHEZ, (D) CALIFORNIA: We must prepare for the possibility that the Justice Department and the White House will continue to hide the truth.
BASH: Republicans opposed authorizing subpoenas now, saying it was premature and political.
REP. CHRIS CANNON, (R) UTAH: The only purpose of subpoenas issued to the White House now is to fan the flames and photo ops of partisan controversy for a partisan gain.
BASH: But in the Senate, some of the president's fellow Republicans are siding with Democrats. They, too, have complaints about the White House's take it or leave it offer. John Cornyn, a staunch Bush ally, tells CNN, "I am a little bit dubious about an interview behind closed doors. If there is going to be information provided, it best be provided in public."
The Senate Judiciary Committee's top Republican agree and says he's worried having no transcript or no formal record could create conflicting accounts of what others say.
SEN. ARLEN SPECTER, (R) JUDICIARY COMMITTEE: It would be helpful to have a transcript. My own preference would be to have it open so that people see what is going on. There's a tremendous amount of public interest.
BUSH: Specter warned that if this gets caught in the courts, it could be stuck there for years and said the president should come back to the table and negotiate with Congress. Both he and the Democratic chairman of the Judiciary Committee are working on counter offers for the White House.
Dana Bash, CNN, Capitol Hill.
(END VIDEOTAPE)
M. O'BRIEN: As for the man at the center of the D.C. showdown, he is trying to mend some fences today. Attorney General Alberto Gonzales set to meet with U.S. attorneys. He also broke bread with Republican senators on the Judiciary Committee yesterday. Not that's the same committee that will be voting on those subpoenas today.
The chairman of that committee, Senator Patrick Leahy, Democrat of Vermont, will be our guest at 8:15 Eastern. And before that, at 7:30 Eastern, we'll talk with the White House press secretary, Tony Snow. We'll ask both men if there's any room for compromise or is it all headed to the Supreme Court.
Soledad.
S. O'BRIEN: The House, today, is expected to debate the war in Iraq. Specifically, that $124 billion spending bill. It calls for U.S. troops to come home by August of next year. And a vote is expected tomorrow.
Meanwhile, a new Pentagon report, which is just out this morning, calls the American-led reconstruction effort in Iraq "chaotic" and "poorly managed." The report blames the lack of oversight of contractors and poor planning back in 2003 for Iraq's rebuilding struggles today. That also says the leaders failed to predict the insurgency and the collapse of Iraq's government. The report from the Pentagon's special inspector general also highlights the disarray between the U.S. Defense Department and the State Department. President Bush is going to meet with his Iraq reconstruction team in Washington, D.C., today. And nearly $400 billion in tax dollars has been spent to rebuild Iraq.
The Pentagon also confirming overnight that a U.S. soldier was killed when insurgents ambushed a patrol in Baghdad. And also new this morning, the U.N.'s secretary-general, Ban Ki-Moon, on the ground in Baghdad. It's an unannounced visit. Also his first trip to Iraq as the U.N. secretary-general.
Miles.
M. O'BRIEN: A another disturbing report. A new series of horror stories at VA hospitals and clinics coast to coast. Among the problems at this clinic in Oregon, a leaky roof and several bat colonies. And officials there are apparently reluctant to eradicate the bats because they say they help control the insects. Other VA facilities have worn-out carpet, pealing paint, mice and dead bugs. And, worse, mold's spreading in patient care areas. The VA's internal investigation was leaked to the Associated Press.
Soledad.
S. O'BRIEN: North Korea's chief nuclear envoy is heading home from Beijing. The six-party talks are over for now. North Korea walked out two days ago saying they're not going to come back to the table until that $25 million in frozen funds we told you about yesterday, until that money is freed up. They're demanding a wire transfer directly into a national account. It was supposed to happen yesterday.
Protests outside the U.N. yesterday as the Security Council negotiates sanctions for Iran over its nuclear program. The Iranian president, Mahmoud Ahmadinejad, has put off a planned visit to New York for now. He wants to speak to the council in person about his country's nuclear program.
And today Congress begins looking into a problem that's facing millions of American homeowners and would-be homeowners. Those sub- prime mortgages, a crisis threatening the entire economy, but it really hurts those who are already financially strapped the most. CNN's Gerri Willis takes a look for us this morning.
(BEGIN VIDEOTAPE)
GERRI WILLIS, CNN CORRESPONDENT, (voice over): Eighty-five-year- old Simeon Ferguson (ph) had one of the safest home loans available, a 30-year fixed mortgage. But his daughter, Karlene, says an aggressive mortgage broker convinced him to get a new, far riskier mortgage that ultimately he couldn't afford.
KARLENE GRANT, DAUGHTER OF LOAN VICTIM: If you're going to sit (ph) with a bank to get a loan, you shouldn't be worried that you're going to be robbed like you're walking out on the street.
WILLIS: Ferguson's case isn't unique. Predatory lenders have encouraged borrowers with poor credit to take out sub-prime loans that can start with affordable rates but escalate to high interest loans. The Center for Responsible Lending estimates one in five sub-prime loans will go into foreclosure in the next few years. That has at least two dozen lenders in serious financial trouble or out of business.
Congress is seizing the moment, holding hearings to grill sub- prime lending executives and federal regulators. The Mortgage Banker's Association says it's working with lenders to use plain language so consumers can better see the risks.
KURT PFOTENHAUER, MORTGAGE BANKERS ASSOCIATION: The vast majority of mortgage lenders are very honest people trying to put a good product out into the market and trying to help people get into homes.
WILLIS: This isn't the first time Congress has taken a look at the issue. During the last session, lawmakers held at least five hearings and introduced at least two major bills, but nothing has happened.
JOHN NASSAR, CENTER FOR RESPONSIBLE LENDING: The last time Congress enacted significant mortgage reform was in the mid-90s, an act called H.O.P.A. The sub-prime market has ballooned since that time and there are many issues that need to be addressed in the mortgage market.
WILLIS: Nassar says the reform added protection for only a small number of sub-prime borrowers. Now, consumers will have to wait to see whether these hearings produce any real change that could help people like Simeon Ferguson, who is, himself, waiting to see whether legal action can help his case.
Gerri Willis, CNN.
(END VIDEOTAPE)
M. O'BRIEN: Well, this morning we know who is behind that YouTube skewering of Hillary Clinton. And it looks a lot more like old fashioned attack politics in a grass roots Internet phenomenon. Phillip Develise (ph) admits he edited the spot which puts Clinton in the role of big brother, ala 1984. But get this. Develise works or actually worked for a consulting firm hired by the Barack Obama campaign. Develise says he did it on his own time, though. He says he has resigned, although his former boss says he was fired.
Soledad.
S. O'BRIEN: Other news happening in America this morning.
The Sago mine in West Virginia is now shut down. The owners say it has nothing to do with that disaster that killed 12 miners last year. They say the price of coal is down and the mine is just not productive.
In New Orleans, there's some new word about why those levees failed during Hurricane Katrina. A state report now says the Army Corps of Engineers used outdated measurements. The levees weren't built high enough. They were one to feet too low.
In Florida, a brush fire is burning this morning near Floral City. Take a look at those pictures there. It's about 70 miles north of Tampa. About 100 acres have burned so far. Firefighters are worried that this fire could spread and some homes could be in danger. So far, though, there are no evacuations to tell you about.
And in Arkansas -- have you seen these pictures? This is a dramatic rescue caught on tape. This is a guy who's car is on fire. Fayetteville Police Officers Phil Crosby (ph) and Christopher Denten (ph) jump in and pull Sean Barns (ph) out of the car. Look at that. The officers -- this is the dash cam from the officer's cruiser.
M. O'BRIEN: Some true heroes. I mean, wow.
S. O'BRIEN: They suffered burns. Look at them. They're grabbing him.
M. O'BRIEN: Wow.
S. O'BRIEN: They'll get in there and they'll pull him out. They suffered burns, actually, and smoke inhalation, too. And the guy, Sean Barns, apparently is in critical condition. But that's pretty remarkable. Look at that.
In Illinois, to tell you about another rescue. Two people who were trapped in their cars by floods were saved. Look at that, right there. It happened after torrential rains came down in the town of Lake Bluff in Illinois. Sadly for them, they've got more severe weather expected there. We're, obviously, going to talk to Rob Marciano about all that.
M. O'BRIEN: Yes. That's what he's got on his plate. He's in for Chad Myers this morning. We're going to be checking in with him after a break.
Also coming up, a vicious attack caught on tape. A female bartender beaten up by one of Chicago's finest.
S. O'BRIEN: Look, she's fighting back, too. Oh, my God. That guy . . .
M. O'BRIEN: He's got a little advantage. He's 250 pounds. We'll show you the whole thing ahead.
And why are so many Iraqis rushing to get tattoos? This is not just because Saddam Hussein is gone and they have freedom. No. There's a sad twist to that story.
Most news in the morning right here on CNN.
(COMMERCIAL BREAK)
M. O'BRIEN: The most news in the morning right here on CNN.
Breaking news from the horn of Africa to tell you about. It's the second day of bloodshed in Somalia. Ethiopian troops guarding government buildings in Mogadishu opening fire on some attackers. The Ethiopians are there trying to help Somalia get some terrorists link to al Qaeda out.
And the House debates again today a spending bill that would pull American troops out of Iraq by August of 2008. A vote is expected tomorrow.
Soledad.
S. O'BRIEN: Some fallout this morning after a brutal attack that was caught on tape involving a female bartender and an off-duty Chicago police officer. Here's CNN's Keith Oppenheim.
(BEGIN VIDEOTAPE)
KEITH OPPENHEIM, CNN CORRESPONDENT, (voice over): The regulars gathered at this neighborhood bar in Chicago while a security camera recorded tape. In this surveillance video, notice the man in the upper right corner of your screen. The bartender, Karolina, didn't know it at the time, but that customer was an off-duty Chicago police officer. Karolina would give her first name only, but agreed to review the tape with me. KAROLINA, BEATING VICTIM: I think I've been telling him that I'm not going to serve him anymore.
OPPENHEIM: Because you're concerned that he's getting wasted?
KAROLINA: Yes. Exactly.
OPPENHEIM: He has since been identified as Officer Anthony Abbate. At one point, Abbate surprises Karolina and comes around to her side of the bar. But when Abbate bumps into the bar, he explodes. He punches her repeatedly. Keep in mind, according to prosecutors, Abbate is 6'1" and 250 pounds. Karolina says she's 5'4" and 130 pounds. As frightened bystanders keep a difference, Officers Abbate walks away. Karolina gets up, despite multiple hits to her head, back and ribs.
DAVID NAVARRO, ASST. COOK COUNTY STATES ATTORNEY: It is one of the most brutal and savage attacks that I've ever seen caught on tape.
OPPENHEIM: Prosecutors have charged Officer Abbate with aggravated assault, a felony. Abbate's attorneys did not return CNN's calls.
Karolina, what is your reaction that the person who beat you is a police officer?
KAROLINA: Actually, I couldn't believe. I was like, police are to serve and protect, not to beat up people.
OPPENHEIM: Chicago police released a statement about Officer Abbate which said, "a recommendation for termination is expected pending the completion of the internal investigation." Karolina says she's left with bad headaches, and as you might imagine, bad memories from what happened in this bar.
Keith Oppenheim, CNN, Chicago.
(END VIDEOTAPE)
S. O'BRIEN: Oh, my gosh. She is so tough. Wow. Wow. And she was hitting back, too. Good for her.
M. O'BRIEN: The size difference is amazing. And he's just relentless attack.
S. O'BRIEN: Well, you know, the crazier thing is, all those people who are sitting around the bar who do absolutely nothing to help her as this giant guy is pounding on her face, at one point picks up his feet and starts kicking her in the head.
Anyway, prosecutors are investigating an obstruction of justice charge after a report that somebody offered the bartender some money to not press charges. And that, of course, could lead to more charges in the case, which includes obstruction of justice.
Miles. M. O'BRIEN: It is now quarter past the hour. Rob Marciano is at the CNN Weather Center in for Chad today.
Hello, Rob.
(WEATHER REPORT)
M. O'BRIEN: Another day of violence in Iraq. A U.S. soldier ambushed. And it is like most days there. More than 90 Iraqi civilians have died in the violence. That's just in a day. And that has caused an unlikely boom in tattoo parlors. CNN's Kyra Phillips live from Baghdad to explain the connection there.
Kyra.
KYRA PHILLIPS, CNN CORRESPONDENT: I know it's an interesting twist. I think a lot of people were thinking, what's the deal with this story? But it actually has a pretty serious angle. The most common tattoos among teens, skulls and dragons, Miles. But when it comes down to life or death, well, they could be a courtesy, also, to a grieving family.
(BEGIN VIDEOTAPE)
PHILLIPS, (voice over): Under Saddam Hussein, Hassan (ph) could have been killed for this. It was considered too American. And in conservative Islam, Haram, a desecration of God's creation.
"Iraqis were scared to have tattoos," he tells me. "Now they have freedom and feel free to get tattoos. They're more open to western culture."
Hassan still operates underground. And it's worth it. Business is booming. This bodyguard turned tattoo artist makes $25 to $150 per tattoo.
"I love this career," he tells me, "because my art lasts forever."
Houssein (ph), are you nervous? A little bit?
Twenty-year-old Houssein is getting his first tattoo. A "d" right over his heart. "D" is for Doha (ph), his girlfriend.
Does Doha know you're doing this?
He explains, "after we get married, I'll show her what I did for her."
What if you don't marry Doha?
"Oh, I will. It's our destiny."
Houssein's act of love is heart warming, but it also has an extremely disturbing purpose. As the car bombs and kidnappings continue to haunt Iraqis, so do the number of unidentified dead bodies. Tattoos are also a form of ID.
"My friend was killed in an explosion. His face charred by the fire," Houssein tells me. "The only way his family could recognize him was by his tattoo."
God forbid anything happens to you, but is this another way for your family to identify you if something were to go wrong?
"Yes, of course. I'll show it to my family so they'll know I have a mark on my body in case something bad happens to me."
From bombs, to body art, these Iraqis flip through all of Hassan's tattoo designs. A butterfly, a snake or a lover's initial. It's a small, guilty pleasure for a country struggling to figure out its new found freedoms.
(END VIDEOTAPE)
PHILLIPS: And, Miles, just a little bit of history going back in time, even up to now. A lot of the Iraqis have little tattoos on their hands, like the men do. It's supposed to represent their tribal roots. The women have little tattoos on their chins, their cheeks. But it's a totally different purpose. Those tattoos are supposed to represent humble beginnings from their tribe.
M. O'BRIEN: Kyra Phillips in Baghdad, thank you.
Soledad.
S. O'BRIEN: Ahead this morning, wanted by criminals in Malaysia. A bounty is offered on two dogs. We'll tell you why.
And Wall Street rallies after some intriguing words from the Federal Reserve. Ali Velshi is "Minding Your Business." That's coming up next on AMERICAN MORNING.
(COMMERCIAL BREAK)
M. O'BRIEN: A pair of strong-nosed, crime-fighting black labs laying low this morning. The target of death threats. That's right, death threats for dogs. The dogs are owned by the Motion Picture Association of America. They're trained to sniff out and sneak pirated DVDs. They were on assignment in Malaysia. Lucky and Flo, there, sniffed out nearly a million illegal disks worth nearly $3 million. Six people were arrested. And that's reportedly why there's now a bounty on their cute little heads. We hope they're well.
The Dow opens this morning after its biggest jump of the year. Ali Velshi, at 25 minutes past the hour.
Good morning, Ali.
ALI VELSHI, CNN CORRESPONDENT: Good morning.
I'm just puzzled. Do pirated DVDs smell different from . . .
S. O'BRIEN: Apparently they do. The chemical they use to knock them off.
M. O'BRIEN: There are chemicals used -- a certain chemical they use.
VELSHI: All right.
S. O'BRIEN: Weird, huh?
VELSHI: It's good and early in the morning, I've already learned something.
We didn't get a whole lot of news that we didn't expect yesterday. The Federal Reserve decided to keep rates unchanged at 5.25 percent. Let me tell you about this. Five and a quarter percent is where they've had it for, well, since last summer.
Here's the thing. The Fed said in its statement that comes out with its interest rate decision, that they're worried about housing and they're worried about inflation. Now if you're worried about housing, you would typically lower interest rates. And if you're worried about inflation, you would typically raise interest rates. But the two are canceling each other out, so the Fed's doing nothing.
Fed rate is 5.25 percent. That means your prime rate is 8.25 percent. And lots of loans are set to the prime rate.
Now the Dow, as a result, liked that news and was up 159 points at the close. It was the best day that it's had this year. It's actually the best day its had in many, many months. The S&P 500 was also up. The Nasdaq was up almost 1.7 percent, much higher than the Dow.
Oil is above $60 a barrel again, however. And right after the bell yesterday, Motorola cut its earnings forecast for the first quarter of this year by about $1 billion. So markets are looking like they might open flat this morning.
But if you, like me, are wondering whether you're in the wrong business, we're going to give you another reason too. Morgan Stanley's earnings up 60 percent in the first quarter. The number two investment bank earned income of $2.56 billion. The revenue on that one, $9.4 billion. I'm going to continue to report on rich people.
S. O'BRIEN: Ka-ching.
M. O'BRIEN: It's a good gig.
Quickly, we made a quick mistake. They can't tell a pirated DVD from a regular DVD. They find DVDs . . .
VELSHI: I see.
M. O'BRIEN: But they find them in concealed places that they shouldn't be.
VELSHI: Places that they shouldn't be. All right. S. O'BRIEN: Right. The chemical from a DVD manufacturing is what tips them off.
M. O'BRIEN: (INAUDIBLE) clarify.
VELSHI: Very interesting.
M. O'BRIEN: They're good dogs, but they're not that smart. OK.
VELSHI: Nobody should hurt them.
M. O'BRIEN: Yes, absolutely.
S. O'BRIEN: That would be magic if they could do that.
Top stories of the morning are coming up next.
A campaign announcement is expected from John Edwards and his wife, Elizabeth, today. There are some new health questions that are surfacing. We've got a live report coming up next.
And subpoena showdown. Another vote is set today on whether White House officials should be forced to testify under oath.
And some people say it's like the Titanic. There are refugees that are fleeing Zimbabwe. We'll take you there and show you why.
You're watching AMERICAN MORNING. The most news in the morning is right here on CNN.
(COMMERCIAL BREAK)
S. O'BRIEN: Welcome back, everybody. It's Thursday, March 22nd. I'm Soledad O'Brien.
M. O'BRIEN: And I'm Miles O'Brien. Thanks for being with us.
S. O'BRIEN: We're watching some new developments for you this morning in the fight over those fired U.S. attorneys. A Senate committee is just hours away from its vote on whether it should authorize subpoenas, which would force Karl Rove and other White House officials to testify under oath. Are we getting close to a constitutional show down? We'll take a look.
M. O'BRIEN: A new headache for the government this morning. We have a leaked report detailing dismal conditions at veteran's hospitals all around the country. Bats in the belfry at one of them. We'll tell you about what is a very grim picture.
S. O'BRIEN: We're also going to take you around the world to southern Africa, Zimbabwe. A country truly in crisis. A huge number of people have been forced to leave just to keep their families alive to feed them. We're going to meet one man who's doing just that and tell you what's happening there.
First, though, we begin with a developing story. A noon announcement is expected today from Democratic presidential candidate John Edwards and his wife, Elizabeth. It could affect Edwards' presidential campaign.
Jeff Zeleny from "The New York Times" joins us by phone this morning.
Jeff, thanks for talking with us.
I know you've been in contact with the campaign. What are they telling you about what we're going to expect later today?
JEFF ZELENY, "THE NEW YORK TIMES": Well, Soledad, the campaign is not disclosing many specifics about what the noon announcement is, but we do know this -- Senator Edwards, he canceled an appearance yesterday in Iowa because he said he wanted to attend a medical appointment, a checkup with his wife, Elizabeth Edwards. Friends of the family last night we spoke to said don't necessarily assume the worst, but this is going to be a very serious announcement about -- about his (sic) health. So some advisers, some friends of the family are expecting, perhaps, a temporary suspension of the campaign, but they're saying don't assume the worst in the long term.
S. O'BRIEN: OK. I think you just misspoke for a moment. You said don't assume the worst about his health. I assume you mean her health, because she had sort of a routine doctor's appointment in the wake of her cancer diagnosis which was back in October of 2004.
ZELENY: Right.
S. O'BRIEN: And it sounds like the doctors had her come back for another round of tests, which for anybody who survived breast cancer would raise all kinds of red flags. I know the campaign has been pretty tight-lipped on all of this.
They say don't assume the worst, but they're not there to announce that everything is fine, also. How do you read that information?
ZELENY: What they're also saying is, don't assume the worst about the campaign, either. I mean, the campaign is -- is expected at least in the short term to go on. There isn't any reason to believe -- at least advisers and friends have been given that it won't. But everyone is very concerned about Mrs. Edwards' health, and that is of the top concern. That's all the advisers we talked to yesterday.
If there is some kind of announcement today, it certainly has the potential to change the contours of the race. The Edwards -- Senator Edwards is, you know, viewed as certainly one of the top three candidates. He's very strong in Iowa.
He's been out campaigning all across the country. He's expected to have a very good fund-raising showing in the first quarter. But if there is some kind of a long-term announcement about his campaign at noon today, this would shake up the race unlike anything else at this point. So all eyes, all Democratic eyes, certainly, will be on Chapel Hill and, of course, everything is thinking about Mrs. Edwards. S. O'BRIEN: Yes. You know, it's interesting. That is the political reality, isn't it? You're worried about her health, but at the same time, the reality is there is a campaign that they are in the middle of.
And, you know, in her book, she talked a lot about how aggressive she was about campaigning, even when her -- when she noticed a lump and didn't take action right away. Well, of course we're waiting for that press conference, and we're crossing our fingers that it's not -- it's not bad news.
The press conference is at noon Eastern Time. CNN is going to carry it for you live.
Jeff, thank you for the update -- Miles.
M. O'BRIEN: In Washington this morning, all eyes on the ayes to see who might blink and who might vote to authorize some subpoenas for top brass at the White House. It's the latest in the showdown over that mass firing of U.S. attorneys.
Suzanne Malveaux at the White House.
(BEGIN VIDEOTAPE)
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Both sides have staked out their positions, but we are not yet at DEFCON 1. The House Judiciary Committee did vote to authorize issuing subpoenas, but not to issue those subpoenas themselves. And when that happens, only when that happens, the White House says it will then take its offer off the table to allow Karl Rove and Harriet Miers to answer questions and to be interviewed by members of Congress.
Now, the strategy here at the White House is to emphasize what they're calling EGO, that this is an extremely generous offer, and to try to force Democrats to capitulate. Now, the Senate Judiciary Committee is going to take up this matter today. That is when they're going to vote whether or not to authorize issuing those subpoenas.
So the showdown continues.
Suzanne Malveaux, CNN, the White House.
(END VIDEOTAPE)
M. O'BRIEN: As for the man at the center of this D.C. donnybrook, he is trying to mend some fences today. Attorney General Alberto Gonzales will meet with U.S. attorneys. Yesterday he broke bread with Republican senators on the Judiciary Committee. That's the committee that will be voting today on those subpoenas.
The chairman of that committee, Democratic senator Patrick Leahy of Vermont, will be our guest at 8:15 Eastern. Before that, 7:30 Eastern, we'll talk with the White House press secretary, Tony Snow. We'll ask both men if there's any room for compromise at this point, or is this all headed to the Supreme Court -- Soledad. (NEWSBREAK)
(COMMERCIAL BREAK)
M. O'BRIEN: Welcome back.
Around the world now, to a crisis in southern Africa. Zimbabwe, already in political chaos under President Robert Mugabe, but there's a new threat, and that threat is of economic collapse.
CNN's Jeff Koinange is live in South Africa near the Zimbabwe border. He's not allowed in the country because the government has kicked CNN out, and he'll explain that as well.
Jeff, give us the latest.
JEFF KOINANGE, CNN AFRICA CORRESPONDENT: That's right, Miles. And as the government of Robert Mugabe continues to spiral into more and more chaos, more Zimbabweans making it across the border. Some analysts estimate about 100,000 each and every week making it here, most of them illegally. And for those of them who do come into South Africa, life for them is all about survival.
(BEGIN VIDEOTAPE)
KOINANGE (voice over): Meet 30-year-old Nkuleleko. His name means freedom in . Freedom in Ndebele, one of Zimbabwe's dominant ethnic groups. Freedom, though, is probably the last thing on his mind.
NKULELEKO, ZIMBABWEAN EXILE: No freedom. No freedom. There is no freedom.
KOINANGE: These days, life is a lesson in survival for Zimbabwe exiles like Nkuleleko. Illegal immigrants forced to leave their country due to what they call the repressive regime of this man, Zimbabwean president Robert Mugabe. Now they are now forced to earn a living in neighboring South Africa.
MOELETSI MBEKI, POLITICAL ANALYST: What South Africa does is we cycle in a lot of illegal immigrants in Zimbabwe. They work in South African by whatever means. They send South African currency to Zimbabwe to support their relatives, and South African companies send goods to Zimbabwe for these relatives to buy. So that is what is keeping Zimbabwe alive.
KOINANGE: Today is shopping day. He picks up sugar, cooking oil, flour, baked beans, washing soap, items no longer available in Zimbabwe. And when they do become available, cost four times what he's paying in South Africa.
NKULELEKO: Well, they are suffering. They are suffering too much. That's why you see, it's like maybe half of Zimbabweans, they are here now.
KOINANGE: Nkuleleko is but one of thousands of exiled Zimbabweans sending boxes and bags of food daily to their starving families. And those not sending food send just about everything else -- computers, wheelbarrows, bathtubs, everything, including the kitchen sink. Zimbabweans say this is what Robert Mugabe has forced them to become, from what the once the bread basket of Southern Africa to what experts call an African basket case.
ESINATH NDLOVU, ZIMBABWEAN EXILE: I don't know what to do except doing this, buying things and sending it home every now and then. Besides that, they're not eating anything. What can we do?
(END VIDEOTAPE)
KOINANGE: And Miles, the reason why we're not allowed just across the border there is that the government of President Robert Mugabe calls us and all western broadcasters enemies of the state -- Miles.
M. O'BRIEN: Is there something specific, some report you did, or is there no real basis for that statement from him?
KOINANGE: Miles, we just tell the truth. That's all we do. Stories like the ones you see, these Zimbabweans, exiles, trying to make a living, trying to send money home, and those at home trying to survive. Mugabe doesn't want those stories told. He doesn't want us in his country. This is as far as we can go.
M. O'BRIEN: Where are things headed there? Is it headed towards collapse?
KOINANGE: It depends on who you ask. If you ask an economic analysts, they say, look, it happened four years ago, it happened 20 years ago. Mugabe's still in power, stronger than ever, 27 years later.
But I tell you, Miles, with inflation the highest in the world, over 1,700 percent, eight out of 10 Zimbabweans out of work, the people are getting more and more desperate, the opposition now is mounting protest after protest, demonstrations after demonstrations. It looks like it will come to a head at some point. It will have to reach a boiling point sooner rather than later -- Miles.
M. O'BRIEN: And the government seems focused on the messenger, and a fine messenger, indeed in Jeff Koinange.
Good job.
Jeff Koinange, right there on the border at South Africa -- Soledad.
(NEWSBREAK)
(WEATHER REPORT)
(COMMERCIAL BREAK)
M. O'BRIEN: Automakers are headed to the White House today. We used to call them the big three, but that sort of seems like an antiquated notion now.
A couple minutes before the top of the hour.
Ali Velshi, they're kind of the three among...
ALI VELSHI, CNN CORRESPONDENT: Detroit's three, or Detroit's largest automakers, or America's largest automakers. Two of them, Ford and GM, are American companies. Chrysler is owned by DaimlerChrysler. Anyway, they're all going -- the three chief executives are going to the White House. The president is going to give them some tea.
Here is what they're supposed to be -- this is from the last meeting. They're supposed to be talking about hybrids and flex fuel and things like that to reduce fuel consumption, but, you know, big problems in the auto industry. I think he's going to ask some other questions.
I wonder if they're going to talk about oil changes, because the automakers are now sort of all joining hands and saying, you don't have to change your oil as often as you used to.
M. O'BRIEN: What, so they're going to go to the Oval Office and talk about oil changes, really?
VELSHI: I don't think so.
M. O'BRIEN: Oh, OK.
VELSHI: But it would be an interesting topic.
M. O'BRIEN: Maybe for you.
VELSHI: It used to be that you changed every 3,000 miles, then 5,000 miles. Ford is saying on its 2,000 miles or later, now 7,500 miles. GM and Honda don't even give you, you know, a time. They just have a sensor that tells you it's time to change your oil.
Change your oil. It's a good thing for your car, but might save you some money.
The next hour of AMERICAN MORNING begins right now.
S. O'BRIEN: Thank you, Ali.
Campaign announcement. John Edwards and his wife Elizabeth are holding an urgent news conference today, and there are some new health questions surfacing.
M. O'BRIEN: The next move in the subpoena showdown. Will the Senate vote to force White House officials to go on the record about those fired U.S. attorneys?
S. O'BRIEN: And medical battlefields. Molds and leaks, even bats making the list of new problems that have been found inside vets' hospitals. We're live this morning from North Carolina, from Washington, D.C., and from New York, all on this AMERICAN MORNING.
Welcome back, everybody. It's Thursday, March 22nd.
I'm Soledad O'Brien.
M. O'BRIEN: And I'm Miles O'Brien.
Thanks for being with us.
S. O'BRIEN: Let's begin with that developing story.
A noon announcement is expected today from the Democratic presidential candidate John Edwards and his wife Elizabeth. It's expected to be about her health. She's a breast cancer survivor. Of course, if could affect Edwards' presidential campaign.
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