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American Morning

U.S. Soldier Identified; Goodling Under Oath: 'Crossed the Line' at Justice Department; Record Gas Prices

Aired May 24, 2007 - 06:58   ET

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

(BEGIN VIDEOTAPE)
KIRAN CHETRY, CNN ANCHOR (voice over): Breaking news. Confirmation overnight that a body found in Iraq is a missing soldier from California.

UNIDENTIFIED FEMALE: We love him. We love him.

CHETRY: Now the push to find our other two men still out there.

Plus, road test. Is ethanol a better bargain at the pump?

GREG HUNTER, CNN CORRESPONDENT: The math is not good for ethanol?

UNIDENTIFIED MALE: No.

CHETRY: How far can a gallon of ethanol really take you?

On this AMERICAN MORNING.

(END VIDEOTAPE)

CHETRY: And our Greg Hunter is going to answer that question for us a little bit later in the show.

And good morning to you. It's Thursday, May 24th. I'm Kiran Chetry.

JOHN ROBERTS, CNN ANCHOR: And I'm John Roberts.

Thanks very much for joining us.

We've got stories on our radar this morning to tell you about.

(NEWSBREAK)

CHETRY: We begin though in Iraq, where the military says the body found is one of the missing U.S. soldiers. It's Joseph Anzack Jr., Private First Class, 20 years old, out of Torrance, California. His family getting that word overnight.

CNN's Arwa Damon is in Yusufiya with the troops still searching for two men still missing.

And when did -- when did the troops that you're with also get the word that it was PFC. Anzack?

ARWA DAMON, CNN CORRESPONDENT: Well, final confirmation did not come until early this morning, but yesterday we were out on a mission, and when we got back at around noon the base was in blackout. That means no Internet, no phones, that someone has been killed in action. And that is when the first -- the word first began to spread.

Troops initially were shocked. Many had been clinging to a hope that they would be able to find all three of their kidnapped soldiers alive. Now the mood is one of resilience, one of quiet mourning. And still, that same level of determination though to find the remaining two kidnapped soldiers and even more determination to find those that carried out the attack -- Kiran.

CHETRY: And how is that search going? Any new developments?

DAMON: Well, Kiran, there are ongoing operations here. There are multiple operations, in fact, happening at the same time.

Just overnight they launched a number of operations. They managed to detain a senior al Qaeda individual. Now, he was not directly linked to the attack, but there's the possibility that he might be able to provide them with some clues.

The unit we were out with yesterday detained eight individuals they, too, are hoping might lead them to some clues. What we're seeing here now is that pieces of the puzzle, the military beginning to put those together.

Multiple interrogations are leading them even closer, they believe, to those who carried out the attack. In fact, the battalion commander here does believe that he knows who was behind this. And is setting out his men to try to find them. He told us he was not looking for revenge, but that there would definitely be a reckoning -- Kiran.

CHETRY: Arwa Damon reporting for us from Yusufiya.

Thank you.

ROBERTS: Today or tomorrow we may learn more about just what the United States knew before invading Iraq. A Senate committee is about to release a report saying intelligence agencies warned the Bush administration back in 2003 that going to war in Iraq could strengthen both Iran and al Qaeda. And in a speech to graduates at the Coast Guard Academy yesterday, President Bush said that al Qaeda is the number one enemy in Iraq.

The nuclear showdown with Iran. Tehran is directly defying the world community and ramping up its nuclear program in recent months. That according to the U.N.'s nuclear watchdog agency.

This, as the U.S. Navy flexes its muscle in the Persian Gulf. Two aircraft carriers and landing ships carried out unannounced exercises just off the coast of Iran. U.S. officials say Iran is thumbing its nose at the international community and Washington wants to ramp up sanctions in return.

CHETRY: Israeli troops stepping up an offensive against the Islamic militant group Hamas. Dozens of officials, including a cabinet minister and three mayors, have been arrested in an overnight raid. It's part of a response to rocket attacks from Gaza on Israel.

Israeli warplanes also bombed businesses in Gaza accused of funneling money to Hamas. Israel accuses Hamas, which has representation in the Palestinian government of exploiting that government to support terror. A Palestinian government spokesman says the arrests showed "a scale of escalation and Israeli arrogance" and asked that those arrested be released.

ROBERTS: She is the star witness in the scandal surrounding Attorney General Alberto Gonzales and the firings of eight U.S. attorneys. And yesterday former Justice Department official Monica Goodling admitted playing politics with the law, under oath and under immunity.

So, does her testimony mean more trouble for her former boss?

Court TV's Savannah Guthrie was at yesterday's hearing, watched the whole thing. She joins us now from Washington.

What was the biggest headline for you yesterday, Savannah?

SAVANNAH GUTHRIE, COURT TV: Well, you know, she was refreshingly candid. And not only did she point the finger directly at her former boss, the deputy attorney general, I was surprised to see how she pointed the finger back at herself and admitted right there, in the hearing, that she herself had improperly taken political considerations into account when hiring for these career positions. And in some ways, that's a bomb shell.

It's something, John, you know we don't hear too often in Washington, someone admitting it, saying, you're right, I did that.

ROBERTS: Yes. In fact, let's take a quick listen to the time that she did that under questioning from one of the panel members.

(BEGIN VIDEO CLIP)

MONICA GOODLING, FMR. JUSTICE DEPT. WHITE HOUSE LIAISON: The best I can say is that I know I took political considerations into account on some occasions.

UNIDENTIFIED MALE: Was that legal?

GOODLING: Sir, I'm not able to answer that question. I know I crossed the line.

(END VIDEO CLIP)

ROBERTS: Well, Savannah, I guess we know why she wanted immunity. GUTHRIE: Well, it's coming in handy, isn't it? Because, you know, that statement cannot be used against her. And it's not just that.

Investigators can't take that statement and then from that basis try to run down leads and get her some other way. What she has is called use and derivative use immunity. And it's a powerful tool on her side.

And, you know, aside from the immunity, even if the investigators could somehow get her on this some other way that had nothing do with the testimony, as a practical matter, what experienced prosecutors tell me is, once Congress gives immunity to someone, it is very unlikely they will be charged criminally. The cases are too hard to make. It's too hard to show there's no connection between the statements that the witness gave in front of Congress and any other investigative leads that they have.

ROBERTS: She also went after the deputy attorney general, Paul McNulty, who announced his resignation -- he's leaving in the fall -- just a little while ago. He blamed her for not fully informing him before he went up to testify to Congress, and he had to come out yesterday and say, hey, wait a minute, what she just said on the stand, that's not right. That's not what happened at all.

GUTHRIE: Right. So now we have two fingers pointing at each other.

She said, all right, I know McNulty has been out there saying I didn't fully brief him. And so if he gave inaccurate testimony to Congress, McNulty had blamed Goodling.

Well, it was clear from the get-go she wasted no time saying, that's false, I did brief him. And so if he wasn't fully candid with Congress, the blame falls at his feet.

And, of course, by the end of the day, we had a statement coming from McNulty saying what she said wasn't true. So, I don't know if we're any closer to finding out, you know, did she brief him correctly or did he deliberately mislead Congress? I don't think we have that answer.

ROBERTS: There was also a suggestion yesterday that Attorney General Alberto Gonzales may have attempted to shape her recollection of events as she was on her way out the door.

GUTHRIE: It's interesting, because for most of the day -- and it was a long day in that hearing room -- Gonzales was sort of the elephant in the room that never got talked about. But then towards the end of the day she relayed this conversation she said she had with him in mid-March where he said, here is what I remember of events. And she testified she was really uncomfortable with that because she didn't want to later be accused of trying to compare stories with the attorney general.

That was the biggest damage I think she did to the attorney general. Whether it has any ultimate effect for his future remains to be scene.

ROBERTS: In fact, she said at the time she thought, is this a conversation I should be having?

Real quick, was there any big smoking gun yesterday though?

GUTHRIE: Not at all. And in fact, everyone who expected her to be the link that would show what White House involvement there was were disappointed, because she said, I wasn't a powerbroker, I didn't hold the keys to the kingdom.

ROBERTS: All right. Well, we'll see how much more is left in this particular issue.

Savannah Guthrie, thanks very much for joining us.

GUTHRIE: Nice to be with you.

ROBERTS: Savannah Guthrie of Court TV.

CHETRY: A new seat belt campaign kicks off today with a blunt message from a man who learned his lesson the hard way.

(BEGIN VIDEO CLIP)

GOV. JON CORZINE (D), NEW JERSEY: I'm New Jersey Governor Jon Corzine, and I should be dead.

On April 12th, I was critically injured in a car accident, where I lost over half my blood and broke 15 bones in 18 places. I spent eight days in intensive care, where a ventilator was breathing for me. It took a remarkable team of doctors and a series of miracles to save my life, when all I needed was a seat belt.

(END VIDEO CLIP)

CHETRY: And Governor Corzine made that public service announcement for the U.S. Department of Transportation. He was critically hurt, you'll remember, when the SUV he was driving in crashed at 91 miles an hour along the Garden State Parkway. The state trooper who was driving was wearing a seat belt, and he suffered only minor injury.

Also this morning, from your fellow drivers, the cities with the most number of speed traps, well, that honor goes to Detroit, Michigan, suburbs. Also Colorado Springs, Colorado; Houston, Texas; Orlando, Florida; Nashville, Tennessee. The list compiled by drivers who report speed traps.

You can check out the full list, see if there's any around where you live at speedtrap.org.

ROBERTS: The House of Representatives is making a move on gas price gouging, if there is any. It passed a bill to carry stiff fines for oil companies, traders or retailers who take unfair advantage or charge excessive prices for gasoline and other fuels. Checking the CNN gas gauge, the price of gas is up yet again, another record high. Americans are paying an average of almost $3.23 a gallon for regular gasoline. That's according to AAA.

So, why are you paying so much for gas, while oil companies and refineries are making record profits? Some say the blame lies with the refineries this time.

Coming up, we're going to go to the source, one of the nation's largest refineries, to ask if there's more that refineries can do to meet demand and ease those record-high gas prices.

That's coming up next on AMERICAN MORNING.

The most news in the morning is on CNN.

(COMMERCIAL BREAK)

(NEWSBREAK)

(WEATHER REPORT)

ROBERTS: Fourteen minutes now after the hour.

As gasoline prices reach record highs, so do the profits of those in the oil refinery business. Across the industry, profit margins are at near record levels.

Major gasoline producers in the United States say they earned about $10 billions from refining in the first quarter of this year. That's up 50 percent. That means that refiners are making a $30 profit per barrel. That's the most since Hurricane Katrina back in 2003. Analysts say refining margins are good because of the nation's "very strong demand" for gasoline.

Lynn Westfall is the chief economist of the Tesoro Corporation. Their profits rose 150 percent earlier this year. He joins me now from Los Angeles outside of one of their refineries.

Mr. Westfall, good to be with you. Thanks for joining us.

LYNN WESTFALL, CHIEF ECONOMIST, TESORO CORP.: Great. Thank you for having me.

ROBERTS: So, as we try to get to the bottom of why gasoline prices are so high in this country, critics are pointing fingers at the refining industry, saying you're the ones responsible because the price of a barrel of oil isn't as high as it was a couple years ago when gasoline prices were lower.

Are you responsible?

WESTFALL: In a way we're responsible. In the way that it's a global market for gasoline.

We're now importing about 13 percent of our gasoline needs in the United States, and those imports have to be supplied by foreign refineries who are very inefficient at making U.S. spec gasoline.

ROBERTS: Right.

WESTFALL: So, we have to bid up the price of gasoline on the world scale to give the incentive to these very inefficient refineries to make something that they weren't built to make. And we also have to pay the price to ship the product over here.

So, yes, when U.S. refineries are running at absolutely 100 percent capacity, and demand keeps growing, we do have to go overseas to very inefficient refineries to fill our supply-demand gap. And that becomes a fairly expensive -- that becomes a very expensive proposition.

ROBERTS: So, you're saying, Mr. Westfall -- so you're saying that this is not a domestic refining problem, this is a problem that we have to bid up the price of gasoline to be able to buy it on the world market? That's the first time I've heard that.

WESTFALL: Correct. And we have to buy it on the world market from very inefficient refineries that were never built to make our types of gasoline.

ROBERTS: So, if gasoline was only, let's say, $2.90s a gallon here in the United States, we wouldn't be able to purchase that gasoline in the world market?

WESTFALL: That's correct.

ROBERTS: Right. All right. Well, that's a different explanation. That's a different explanation than we've heard before.

But let me ask you this question. We keep hearing from analysts that refineries in the United States are not able to keep up with demand. Has your industry got a problem here domestically?

WESTFALL: No, that's very correct. And over the last nine months gasoline demand has gone up at the rate of two and a half new refineries a year. And we can't build that kind of capacity.

The industry has never been able to build that kind of capacity. So, every year, if demand goes up that much, certainly we can do some things that exist in refineries. And I think every refinery companying is doing something at existing refineries to increase their capacity. But it's being far outpaced by demand growth.

ROBERTS: Right.

WESTFALL: So, in fact, we are getting more and more dependent on imports.

ROBERTS: So, what's the problem with expanding refinery capacity? We keep hearing that there hasn't been a new refinery built in this country since the 1970s. We do hear about some expansion, but what are the disincentives to doing that? WESTFALL: Well, when you're looking at building a new refinery, it's a six to seven-year proposition before you can get it built. So, for six to seven years, you are spending billions of dollars and getting no income. After that, it would it would take even today's margins for 10 to 15 years to pay out that kind of a massive expenditure.

So, to build a new refinery, you're basically asking someone to take a 20-year risk. The refining margins are going to stay at the high levels they're at now. And that's not really a very good risk.

ROBERTS: And what about this move to alternative fuels? President Bush saying by the year 2020 he wants to replace 65 billion gallons of gasoline with alternative fuels -- ethanol, biodiesel. Is that a disincentive to increasing refining capacity?

WESTFALL: It is. It certainly clouds our investment picture. If you are asking to us spend billions of dollars to produce new gasoline, and at the same time a lot of countries, not just the United States, are putting forth efforts to do away with demand for gasoline, it does make the investment picture a bit cloudy for us.

ROBERTS: And let me ask you one final question. The way the gasoline prices are now, are we more likely to see $4 a gallon gas than we are $3 a gallon gas?

WESTFALL: Well, I'll start the answer with, all other things being equal, meaning there's no disruptions in the Middle East, there are no refinery operating incidents, what we are seeing now is, for the past three weeks gasoline inventories have finally started to build because refineries are coming back from being shut down to do routine maintenance. So I would say the prices are probably going to peak in the next week or two, then you'll start seeing some relief through the summer.

So, I think the worst is over, in my opinion, barring an unforeseen incident. And through the summertime I think you'll see some relief on gasoline prices.

ROBERTS: Well, that would be some very good news.

Lynn Westfall from Tesoro, the big refining company out there on the West Coast.

Thanks very much.

And coming up in our next half hour, a closer look at ethanol. It costs less per gallon than regular unleaded does, but does it take you as far? Is it more economical? We road test it just ahead.

CHETRY: And some more stories we're tracking for you this morning.

(NEWSBREAK)

(COMMERCIAL BREAK) ROBERTS: Twenty-four minutes after the hour. Some stories that we're tracking this morning.

(BUSINESS REPORT)

(COMMERCIAL BREAK)

KIRAN CHETRY, CNN ANCHOR, AMERICAN MORNING: Wow what a pretty shot this morning. That's from Los Angeles. The city, I think they're all still asleep. It's 4:30 in the morning there.

JOHN ROBERTS, CNN ANCHOR, AMERICAN MORNING: The city is still asleep. Is that taken from Griffith Park?

CHETRY: I'm not sure.

ROBERTS: It's sort of like the quintessential LA skyline shot you see in the movies.

CHETRY: At least it's not burning because they had a big wildfire situation there about a month ago.

ROBERTS: Always good when LA is not on fire.

CHETRY: Yes. Thanks so much for being with us. It's Thursday, May 24th. I'm Kiran Chetry.

ROBERTS: And I'm John Roberts. Stories on our radar for you this morning, record high gasoline prices, the national average almost $3.23 a gallon this morning. Ethanol is far cheaper, this E-85 gas at $2.59 a gallon but is it the best alternative? Do you get as much bang for your buck? We'll show you a head to head mileage test and see if a tank of ethanol takes you farther or less far than a tank of traditional gasoline, an interesting comparison.

CHETRY: I can't wait to see it. Greg Hunter is going to actually do it for us live on the show in just a few minutes.

Meantime, an aspirin a day, is that what they say? No, they say an apple a day.

ROBERTS: They also say an aspirin a day for some conditions like heart disease.

CHETRY: That's right, exactly, for keeping your flood flowing. There are possibly some new benefits and a better understanding of why taking aspirin may help prevent a certain type of cancer.

ROBERTS: And stripping for credit, not that type of credit, not like credit cards or good credit. We'll meet a young woman who got a job at a strip club to better understand America's culture of sex and she wrote a paper about it for her studies program and she got a "B." Wonder why she only got a "B." Anyway, we start with her coming up.

CHETRY: ... questions we'll be asking her coming up. Meanwhile, we start the nuclear showdown with Iran, and a new report from the United Nations saying that Iran is directly defying the international community by ramping up its nuclear program. A surprise inspection by the UN's watchdog agency this month found that Iran has significantly increased capacity to enrich uranium. Some say they could be about a year, maybe three years away from a nuclear weapon that could work. Washington says it will seek a major expansion of sanctions.

Also overnight, the military identified the body found in Iraq as one of our missing soldiers. PFC Joseph Anzack Junior, 20 years old from Torrance, California. The family was told that a commanding officer identified him. They are still going to be doing DNA tests. Troops searching for the two remaining soldiers got the word on that this morning. They say they are gathering information that will get them closer to finding the two still missing.

And a surprising admission from a former top aide to Attorney General Alberto Gonzales. Former White House liaison Monica Goodling testified yesterday that she tried to hire only Republicans.

(BEGIN VIDEO CLIP)

MONICA GOODLING, FMR. JUSTICE DEPT. AIDE: The best I can say is that I know I took political considerations into account on some occasions.

UNIDENTIFIED MALE: Was that legal?

GOODLING: Sir, I'm not able to answer that question. I know I crossed the line.

(END VIDEO CLIP)

CHETRY: Goodling admitted to using Google and other means to identify Republican applicants. She also said that Gonzales talked to her about the firings of Federal prosecutors before his own testimony. That's something that Gonzalez has denied.

ROBERTS: The Memorial Day weekend is almost upon us kicking off the unofficial start of summer and certainly the start of the summer driving season. You're going to be paying a lot more to drive to the beach. Gasoline prices have never been higher, even inflation adjusted, now at $3.23 a gallon. You can get ethanol, this blended gas called E-85 for much less, but are you actually getting your money's worth if you buy that? AMERICAN MORNING's Greg Hunter is live in Albany, New York at one of the few stations selling the E-85 ethanol blend gas and Greg, you have done a head to head comparison. This is something I'm really looking forward to seeing.

GREG HUNTER, CNN CORRESPONDENT: OK, hey John. We are at campus Mobil and just to give you an idea of what it looks like, it looks almost like water but it smells like gasoline and ethanol. It's 85 percent ethanol. Now proponents of this magic liquid say listen, it reduces our dependence on foreign energy. It's home grown and it's cheaper than gasoline. But to the consumer out there the big question is, is it worth it?

(BEGIN VIDEOTAPE)

HUNTER (voice-over): As gas prices keep climbing, should you be looking at a flex fuel vehicle that can run on a blend of ethanol and gasoline? It's called E-85, a bio fuel produced in the U.S. from corn. Some consider it one of the most promising alternatives to petroleum, but will you actually save money?

DAVID CHAMPION, SR. DIR., AUTOMOTIVE TESTING: You can just watch the gas gauge go down.

HUNTER: David Champion of "Consumer Reports" oversaw a flex fuel vehicle test last fall. They used a new Chevy Tahoe fuelled with E- 85. They tested it the same way they used all vehicles, using special meters on a predetermined track. Their findings, a whopping 27 percent reduction in fuel economy with E-85. In other words, you get fewer miles on the same amount of fuel.

CHAMPION: The amount of energy in an E-85 is substantially less than the energy in a gallon of gasoline. It's just sheer chemistry.

HUNTER: So you get less gas mileage.

CHAMPION: You get less gas mileage.

HUNTER: The Environmental Protection Agency's numbers almost mirror the consumer report findings. It shows an average 26 percent drop for vehicles fuel with the 85. The national ethanol vehicle coalition estimates that fuel economy loss is closer to 15 to 70 percent, and say, this loss depends on many factors. Aggressive driving habits can result in a 20 percent loss and low tire pressure can reduce mileage by 6 percent. General Motors, a major manufacturer of flex fueled vehicles also weighed in and says, producing E-85 flex fuel vehicles is one part of GM's strategy to help reduce the use of petroleum and also reduce vehicle emissions. Even though it does burn cleaner and can be almost 60 cents a gallon cheaper than gasoline, Champion says it is just not a good deal for the consumer.

CHAMPION: Your gas mileage is going to drop by a third. So it's still going to cost you more.

HUNTER: (INAUDIBLE) ethanol.

(END VIDEOTAPE)

HUNTER: Proponents say that in time ethanol, will come down in price. They'll find different things to grow to make the ethanol a lot cheaper and it's a good start. One other thing, if you come here to a gas pump and you take a look at this E-85 and think it's $2.59 a gallon, it's much cheaper, again, we're at Campus Mobil, is only one of two places in New York that sells it. You take a look at the regular price and it says $3.17, holy smokes, I'm going to put this right in my car. Here's a caveat. Make sure you have a flex fuel vehicle. You can't put this in a car that's not a flex fuel vehicle. One sure way to know, the universal code. It's a yellow gas cap, whether it's a Ford or a Chevy, whoever makes it, they are going to a yellow gas cap, to let you know, the yellow pump, your car will take flex fuel. Back to you guys.

ROBERTS: Interesting, Greg, thanks very much for all of that. Good primer on E-85 gasoline.

Tomorrow we're going to kick off a special series, Greg's gas gauge challenge. Greg is going to hit the road to find out whether it is cheaper to fly than to drive. In some cases I think it might be.

CHETRY: We won't see Greg for a while apparently.

ROBERTS: We know where he's spending the Memorial Day weekend at least.

And it's not just the gas that's draining your wallet, food prices are on the rise as well. We'll show you what's pushing your grocery bill higher.

CHETRY: And some more stories we are tracking this morning, scientists in California say they are hoping that recordings of orcas attacking a mother whale and her calf, recordings of that will persuade a pair of wounded whales to head back to the ocean. The pair was spotted flapping their tails on the water. That's a sign of possible distress. Some who have been following this case say that the outcome is not looking good right now unless they start moving and start moving soon.

Doctors now say they know why aspirin helps prevent colon cancer. It block a certain enzyme, Cox 2. Now they can direct people with Cox 2 to take aspirin.

(COMMERCIAL BREAK)

ROBERTS: Stories that we're tracking for you this morning. House Minority Leader John Boehner cutting to the chase on the immigration bill. He was caught last night at a private gathering calling it a piece of - insert four-letter word here starting with "S." There's a lot of profanity around this immigration bill. John McCain the other day, now John Boehner.

Hillary Clinton won't ignore Iowa in next year's presidential race. Her deputy campaign manager suggesting skipping the state in order to focus on other places where she is doing better in the polls. Recent polls show Clinton trailing both Barack Obama and John Edwards in Iowa.

Forty one minutes after the hour now. Chad Myers here with a look at more extreme weather, again, in the Midwest. Not a very good holiday weekend forecast.

CHAD MYERS, CNN METEOROLOGIST: A little bit wet in the plains but if you remember, 6:15, 6:45, you asked me to look up whether this was a really bad tornado season or not. The normal three-year average for tornado deaths for the entire year, 36. So far this year, 74 people have died in tornadoes. It's only May. CHETRY: It's astounding when you break it down like that because you showed us video I guess it was about a month or two back of the devastation of different tornadoes. But it really is where they hit. I mean sometimes a devastating tornado plows through and luckily no one is there.

MYERS: Could you imagine if the Greensburg, Kansas, tornado which killed at least 10 people, could you imagine if that was through Oklahoma City what the number could have been? And more (INAUDIBLE) that big F-5 right through there. Tell you what, the whole day today we are going to be looking at storms in places maybe that you wouldn't think. How about Wisconsin? That's where the severe weather is going to be today from east of Minneapolis through Eau Claire right on down through and into St. Louis. A couple of showers and storms in west Texas, kind of the high plains out toward el Paso as well, but this is the area of severe weather, the UP of Michigan right on down through Wisconsin and into Aurora, Illinois.

We do have severe weather going on this morning, no tornadoes, but just some wind damage occurring down across Oklahoma City right now. Later on today and through the south central plains for the next 48 hours, we will be talking about more flooding. This is a computer projection of how much rain is going to fall in the next 48 hours. I'm waiting, waiting, waiting. You see that purple? There are spots in there, over eight inches of rain in the next 48-hours forecast by the computer models. And I'll tell you what, those are some wet places already. It's just going to be flooding again. We'll have those pictures for you tomorrow I'm sure.

ROBERTS: Look forward to it, thanks, Chad.

CHETRY: The benefits of aspirin, doctors say that it can help prevent heart attacks and strokes. We know about that. Now there's a new study saying that a daily dose could help some colon cancer patients. To talk more about it we are paging Dr. Gupta. Sanjay joins us from Atlanta. Hi, Sanjay, good to see you.

DR. SANJAY GUPTA, CNN CORRESPONDENT: Good morning Kiran.

CHETRY: This is for people who already have colon cancer?

GUPTA: It's actually a preventive sort of thing. You know, aspirin is one of these amazing drugs. They are actually talking about it in terms of warding off strokes and heart disease. I heard you and John talking about that earlier. Doctors noticed years ago that it actually seemed to prevent colon cancer as well. They weren't exactly sure why, but it just sort of added to the fact that this aspirin was considered this wonder drug. They have investigated for some time now why would aspirin possibly prevent colon cancer?

They stumbled on to the reasons why now. Turns out there are two types of colon cancer. There's actually many types, but for the purposes of this discussion, there are colon cancers that produce Cox 2, which is a particular molecule and colon cancers that don't. If your particular colon cancer produces a Cox 2 molecule, taking aspirin actually seems to ward that off, so you don't have any problems actually developing colon cancer later on. It's remarkably effective if you're one -- if you fall into one of these two subtypes. Again, the study found that people who took aspirin had the Cox 2 molecules, had a dramatically reduced incidence of colon cancer.

CHETRY: The other question that I have then is should you take a daily aspirin, like you would to try to prevent heart disease to try to prevent colon cancer?

GUPTA: A lot of people have been doing that for some time sort of believing that, look, we heard the studies that if you take aspirin it can actually ward off colon cancer. Most doctors will say no, not yet. We're not there yet. If you are not one of these people who produces the Cox 2, you're going to get no benefit from aspirin but you're possibly going to get some of the risks. Where we might be years from now is in fact, when people actually have a colonoscopy, we're showing some of the video there and they get one of these polyps removed, they might actually be told to go home and take aspirin, take aspirin almost as a chemo agent to try to prevent colon cancers from developing in the future.

And the numbers are pretty impressive. They find a 36 percent reduction in colon cancer risk if you take the aspirin. So, nothing, pretty significant improvement there. Also in terms of how much, they found that taking fewer than two tablets a week had no benefits. By the way, these are the adult aspirins. Taking two to 14 tablets a week which is up to two tablets a day, seemed to have significant benefit Kiran and the more the better. So take up to two adult aspirin a day, if you fall into the subtype of colon cancer, can actually have significant benefits.

CHETRY: It's interesting because we are talking about Cox 2 and we know the Cox 2 inhibitor class of drugs like the Vioxx that was pulled off the market, is that similar to what the aspirin benefit was?

GUPTA: In fact I read the editorial on this very topic and you bring up the same exact points that they brought up. There were two drugs, remember, Vioxx, there was also...

CHETRY: Celebrex.

GUPTA: Celebrex, yes, the other one was Celebrex. They were both Cox 2 inhibitors. They obviously got a bad rap in light of all the potential side effects, but doctors are saying should we be look at this class of drugs to possibly treat colon cancer in the future That might be something we talk about.

CHETRY: Very interesting. Sanjay, thanks. Great to see you. By the way a little later, Sanjay is going to go reach into that e-mail bag in our next hour, answering some of your medical questions coming up a little later on AMERICAN MORNING.

ROBERTS: Yesterday we told you about a college student's unique internship. She became a stripper and got a "B" on her thesis about her experiences. She's going to join us in the studio coming up so stay with us for that. (COMMERCIAL BREAK)

CHETRY: Welcome back to AMERICAN MORNING, the music may give it away a little bit here. A sociology student says that she wanted to bring sex workers out of the dark and she did more than just that. She actually got a job as a stripper to research a college paper and ended up getting credit for it. Jenny Heineman just graduated from the University of Nebraska and she joins us this morning. Good to see you Jenny.

JENNY HEINEMAN, STRIPPED FOR COLLEGE CREDIT: Good to see you.

CHETRY: Is that the music they usually use or is that --

HEINEMAN: Definitely. That's typical of the club, sure.

CHETRY: Tell us how you got this idea that you wanted to actually go for it and see what it was like to be a stripper for your paper.

HEINEMAN: I kind of like to preface my answer to that question with I don't think my reasons for desiring a job in the industry are much different from a lot of women. There's of course the thrill, the curiosity, the appreciation for your body and other women's bodies and of course monetary gain. That kind of juxtaposed with my experience as a student in Europe, where I was exposed to the drastic differences between European and U.S. social stigma of sex workers.

CHETRY: Because there is a stigma attached to being a stripper.

HEINEMAN: There's a definite stigma, sure.

CHETRY: What did you learn about that?

HEINEMAN: I learned that stigma can be very dangerous for women in the industry. I think it's horrible for society as well.

CHETRY: Do you think stripping is bad for society?

HEINEMAN: I think it's an amoral issue. I think that sex work has always existed. It will always exist and the real point is how can we make these women safer, happier, healthier.

CHETRY: Are the majority of women that you met with during your time as a stripper, are they happy? .

HEINEMAN: I think so yeah. I think they would be happier if there was more regulation, if they had more human rights, same kind of rights that any other laborer is entitled to. I feel they should (INAUDIBLE)

CHETRY: You wrote this paper. You ended up getting a "B." What was the reaction from your teacher?

HEINEMAN: I think all of my professors in the sociology department at UNL are very supportive.

CHETRY: You got credit for quite a unique idea.

HEINEMAN: For sure. They have always been supportive. I have written quite a few papers, I've been to a few conferences.

CHETRY: The other interesting thing though is that you continue to strip a few times a week.

HEINEMAN: Yes, I do.

CHETRY: But you don't have to do it for class. Why do you do it?

HEINEMAN: I think that's -- that question alone is kind of loaded with bias. It kind of assumes like this destitution, why would do you it if you don't have to? But I really enjoy doing it. I think it's a great job. It's a lot of fun.

CHETRY: You are saying that there are other college-educated people possibly pursuing a masters degree that would choose stripping as a career?

HEINEMAN: Of course.

CHETRY: And you met with other people doing that.

HEINEMAN: For sure.

CHETRY: That's interesting because I would never think that.

HEINEMAN: Right and most people would not.

CHETRY: Can you show me your outfit? You did something for us. The shoes alone are quite high.

HEINEMAN: These are my favorite shoes.

CHETRY: Probably some of the hazards of the trade is a back ache with those things on.

HEINEMAN: Sure.

CHETRY: How about the -- I didn't realize this was a skirt. We thought it was a bandanna.

HEINEMAN: This is my school girl skirt.

CHETRY: Appropriate, since you did end up writing a paper on it. Finally go ahead and show us the top.

HEINEMAN: The little top, little mesh top.

CHETRY: Jenny, you have a fascinating story. Thank you very much for coming in.

HEINEMAN: Thank you so much.

CHETRY: Take care. John? ROBERTS: What better way to celebrate the 30th anniversary of "Star Wars" than with a movie marathon? Thousands of diehard fans in Los Angeles sitting through all six movies yesterday, 17 hours worth.

"American Idol" crowns a new champion. We will show you the highlights from the finale. That's coming up next on AMERICAN MORNING.

(COMMERCIAL BREAK)

ROBERTS: Fifty seven minutes after the hour. Carrie Lee here "Minding Your Business." And we've been talking all morning about the price of gasoline and you've got some statistics on how high it's been for how long.

CARRIE LEE, CNN CORRESPONDENT: Twelve days and this is a record.

ROBERTS: It goes up every day.

LEE: Exactly. This marks the longest time period in AAA's history under which gas prices have sold for on average above $3 a gallon. Today $3.23 and this compares with $2.86 just a month ago and $2.87 a year ago. So far gas prices are going just one way, up. The House of Representatives, they don't like this, getting involved. They just passed a bill, a second bill related to gas prices this week that aims at preventing gas stations from running up gas prices excessively. There are some critics to this bill. They say it's too vague, what marks excessive, how do you really determine whether the price hikes are justified or not. But this is the second bill from the House in as many days. Just two days ago the House voted to let the government sue members of OPEC for price manipulation.

Now the Bush administration has threatened to veto both of these bills, warning that they both could pinch supplies. But here are the penalties, this is what the House wants to see anyway, up to 10 years in prison, $2 million fines for individuals, gas station owners, $150 million fines for corporations so potentially some serious money here. But again there are critics to this bill. One person says this is a solution in search of a problem. There was some evidence of price gouging after Katrina, but is this a widespread practice? Really hard to say for sure that it is.

CHETRY: Carrie Lee, thanks so much.

ROBERTS: If you like the movie, you just may love the book. Borat, the fictitious journalist from Kazakhstan played by Sasha Baron Cohen is coming out with a book with two titles. "Borat, Touristic Guidings to Minor Nation of US of A" and "Borat, Tourist Guidings to Glorious Nation of Kazakhstan." It's a tongue in cheek travel guide of course. According to the publisher, the book, which is due out this fall, will feature Borat's timeless wisdom, plus illustrations and photograph.

CHETRY: How about that one? All right. After thousands and hundreds of thousands actually of bad auditions, some good ones, "American Idol" boiled down to just two and last night they crowned the winner. (BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Is -- Jordin Sparks!

(END VIDEO CLIP)

CHETRY: wow. She did it. The big voice beat out the beat box. Seventeen-year-old Jordin Sparks, the youngest winner in the show's history. Don't need to shed tears for Blake. The 25-year-old will definitely get a record deal out of this as well. Oftentimes, the number two does even better than number one. Look at Clay Aiken.

ROBERTS: Yeah. Look at Clay Aiken. The next hour of AMERICAN MORNING starts right now.

CHETRY: Gathering storm. New signs Iran has no intention of ending its nuclear program. The U.S. now firing back.

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