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New Hampshire Delivers Victories For Clinton and McCain; Bodies of Four Children Found in D.C. Home

Aired January 09, 2008 - 15:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: Well, here it comes again, winter with a vengeance in the Pacific Northwest, a winter storm warning posted for the Cascade Passes. And our Chad Meyers is watching in the Weather Center.
DON LEMON, CNN ANCHOR: So long New Hampshire. Hello, New Jersey. The second-place finisher in yesterday's Democratic primary reaps a little love in the Garden State, and we are there. Of course we're live.

Hello, everyone. I'm Don Live, at the CNN world headquarters in Atlanta

PHILLIPS: And I'm Kyra Phillips. You're live in the CNN NEWSROOM.

Developments coming in right now to the CNN NEWSROOM from Mexico City, where we understand that is how far one of two New Jersey jail escapees got to.

On the phone with us now, CNN's Jason Carroll with the exclusive information. He has been traveling throughout Mexico -- Jason.

JASON CARROLL, CNN CORRESPONDENT: Yes, Kyra.

And we have learned that U.S. Marshals at this hour right now are trying to facilitate a surrender with Otis Blunt. He is one of the two escaped fugitives. They are working with Otis Blunt -- with his wife in New Jersey. They are trying to make it happen. Otis Blunt is here somewhere in Mexico City.

We are also being told, Kyra, that someone here in Mexico City is obviously helping him. We have not learned who that person is. U.S. Marshals were able to check phone records of where Otis Blunt had called a friend. It turns out that that location is just about two miles from our hotel where we are now in Mexico City.

Apparently, Blunt said that he would surrender based on three conditions, one, that he would be allowed to see his wife and his children. Two, he says he does not want to return to the same facility, that Union County Jail, where he escaped about three weeks ago.

And, three, he says he wants some assurances, Kyra, that someone is going to take a look at surveillance tape from an armed robbery that took place that he was allegedly involved in. He says that tape will show that he did not commit that crime.

We also were able to get some information about why in terms he decided to facilitate some sort of surrender at this point. He says that he doesn't want to be a fugitive anymore. He says he wants to have access to his family and he wants to go back to New Jersey -- Kyra.

PHILLIPS: So how exactly did he escape, Jason?

CARROLL: Well, this is an interesting story.

It is somewhat a la "Shawshank Redemption." You will know that, about three weeks ago, Otis Blunt and his cell mate, Jose Espinosa, chipped through a concrete wall, made a small hole to the outside which led to the outside a facility. They covered that hole with pictures of scantily clad women.

And if this sounds familiar, it's just like what one of the characters did in "Shawshank Redemption." They were able to jump outside and escape. It turns out Jose Espinosa was captured just last night. He hurt his leg in trying to escape. He was captured just about several blocks from that Union County facility. Obviously, Otis Blunt made it much further away -- Kyra.

PHILLIPS: All right, we will be tracking what happens there from Mexico. Keep in touch with us. Jason Carroll, calling in there from Mexico, appreciate it.

LEMON: Two new winners, two key comebacks. In one day, the presidential race gets more competitive and more complex.

Hillary Clinton defies the polls and delivers a win over Barack Obama in the New Hampshire Democratic primary, and John McCain revives a Republican campaign that once was on life support. He beat out Mitt Romney.

Now the races are looking like marathons, with South Carolina one of the next big prizes here. But, before South Carolina, there is Michigan, which holds its primary next Tuesday. John McCain and Mitt Romney are both there now.

Romney is hoping for home field advantage in his native state, but McCain is hoping to snatch another win, as he did yesterday.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: My friends, I didn't go to Washington to go along the get along or to play it safe to serve my own interests. I went there to serve my country.

CALLER:

MCCAIN: And that, my friends -- and that, my friends is just what I intend to do if I am so privileged to be elected your president.

(CHEERING AND APPLAUSE)

(END VIDEO CLIP)

LEMON: Here is the Republican breakdown from the New Hampshire primary.

McCain got 37 percent of the vote, Romney 31 percent. Mike Huckabee followed with 11 percent. Rudy Giuliani, who limited his New Hampshire campaigning to focus on other states, got 9 percent of the vote.

Hillary Clinton and Barack Obama both looking forward to the Democratic horse race ahead. Obama says that his second-place finish in New Hampshire, despite late polls showing in the lead, won't slow his momentum.

Now, just last hour, he won the endorsement of the biggest labor union in Nevada, which holds its caucuses January 19. Earlier, another Nevada major Nevada union also backed him.

As for Clinton, she says her New Hampshire vote -- or New Hampshire win, I should say, reflects the Granite State's famous independent streak.

(BEGIN VIDEO CLIP)

SEN. HILLARY RODHAM CLINTON (D-NY), PRESIDENTIAL CANDIDATE: I believe in what we can do together. In the future, we will build together. There will be no more invisible Americans. So, we're going to take what we have learned here in New Hampshire, and we're going to rally on and make our case. We are in it for the long run.

(CHEERING AND APPLAUSE)

(END VIDEO CLIP)

LEMON: Here is the Democratic breakdown in New Hampshire; 39 percent of the vote was for Senator Clinton, 37 percent for Obama. John Edwards follows with 17 percent, then Bill Richardson with 5 percent of the vote.

And, in New Jersey now -- that is where the Obama camp is heading today -- our Suzanne Malveaux is there -- is expected at a live event in just a little bit. And we will get Suzanne up and running for you and bring that event to you live right here in the CNN NEWSROOM.

Let's move on now and talk about Iowa and New Hampshire voters. They have spoken. So what is next in the race to the White House? Well, next Tuesday, it is the Michigan primary. Republican Mitt Romney was born and raised there, but John McCain won the Michigan race in 2000. No Democratic delegates are up for grabs.

That is punishment from the national party, after Michigan moved up its primary date. Saturday, January 19, brings the Nevada caucuses. That same day, Republicans hold their primary in South Carolina. One week later, same state, different party, though. The Democratic primary in South Carolina is Saturday, January 26.

Then Florida closes out a busy month. Its primary is Tuesday, January 29. And February 5 is a big day. That is Super Tuesday, more than 20 primaries and caucuses, including those in California, New York and also in Georgia.

And for more on the New Hampshire primary and the next stops for the presidential candidates, go to CNNPolitics.com. And it is your one-stop shop for all things politics.

PHILLIPS: High-tech and low risk -- unmanned Predator drones are one of the favorite means of collecting intelligence in Iraq and in one recent instance helping capturing three suspected al Qaeda militants caught on tape killing a civilian.

CNN senior Pentagon correspondent Jamie McIntyre joins us now with the story.

Jamie, what happened?

JAMIE MCINTYRE, CNN SENIOR PENTAGON CORRESPONDENT: Well, Kyra, the U.S. military say that these concerned local citizens are the front lines now in the fight against al Qaeda.

The U.S. has a major military operation going on in Diyala Province against al Qaeda. And today, the military released video from a Predator drone showing what they say to be an Iraqi being executed by three al Qaeda operatives.

Here is the video from the overhead imagery from that unmanned aerial vehicle.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: ... an open field and then throwing him into a ditch and assassinating him.

MAJOR GENERAL MARK HERTLING, COMMANDER, MULTI-NATIONAL DIVISION NORTH: You can see these three individuals now, pulling them off. There will be a little bit of a break in the film shortly as the camera slews. This was off of an unmanned aerial vehicle.

And now you see several of them shooting and leaving them in the ditch. What you are seeing on the screen is the brutal execution of an individual in Diyala. We followed the individuals who committed this act to a bed-down location through that same video -- through the same Predator, captured them, and then found additional information linking all three of them to AQI.

(END VIDEO CLIP)

MCINTYRE: That is Major General Mark Hertling, who is the commander in Diyala Province.

And it is a real tough situation there now. In fact, we just in the last few minutes, Kyra, got word from the U.S. military that there was an explosion in a house, a bomb planted in a house that has killed six U.S. soldiers and wounded four others, because of an improvised explosive device planted in a bomb.

This is also an area, by the way, where they found the severed heads of five Iraqis with a warning written in blood on them urging local Iraqis not to join the concerned local citizens and awakening councils in fighting al Qaeda. So, there is some pretty brutal tactics being employed in Diyala Province. And there is -- there has been a significant loss of life there today by the U.S. military, six dead and four wounded in that house bomb -- Kyra.

PHILLIPS: Yes, well, brutality defines al Qaeda.

What about this Iraqi that was executed? Do we know anything about him, Jamie, or who he was or what they say he did?

MCINTYRE: Well, the U.S. military didn't release any details. We don't know, for instance, if he was a member of one of the awakening councils of the so-called concerned local citizens.

But, obviously, al Qaeda did not consider him to be a friend. And the U.S. military says they did -- they were able to trace the three individuals involved and link them to al Qaeda. So, they do believe this was an al Qaeda assassination of a local Iraqi. And it's typical of the kind of intimidation that al Qaeda is employing to try to combat what has been a lot of recent success by these local Iraqis in taking back their country from al Qaeda.

PHILLIPS: Jamie McIntyre from the Pentagon -- thanks, Jamie.

(WEATHER UPDATE)

PHILLIPS: Well, it is the jetliner of the future all wired up for in-flight Internet. But there's a problem, how to keep the hackers out -- cyber-security and 35,000 feet.

(COMMERCIAL BREAK)

PHILLIPS: It is high-tech all right, the most advanced passenger jet ever built, the Dreamliner, Boeing's 787. Computers help the pilots fly. Networks let passengers surf, but is super smart always super safe?

CNN homeland security correspondent Jeanne Meserve joins me now.

What do you think, Jeanne?

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: Well, Kyra, it is a real question.

The 787 is a soup-to-nuts aircraft which promises to give passengers everything, including onboard in-flight Internet access. The question is how much of a connection might there be between those passengers and their computers and the aircraft's computerized control navigation and communications systems? Could a hacker, for instance, interfere with the plane's operation, even bring an aircraft down? The FAA is concerned, writing, "Because of this new passenger connectivity, the proposed data network design and integration may result in security vulnerabilities from intentional or unintentional corruption of data and systems critical to the safety and maintenance of the aircraft."

The FAA says its concerns are hypothetical; there is no known vulnerability. But current rules don't cover the new technology. And the FAA is telling Boeing to address the safety issues.

The company says it has designed and built the 787 with hardware and software to prevent any unauthorized access to the plane's vital systems, but it won't be certain, absolutely certain, that the steps it has taken are adequate until the plane is in the air. The first air tests are expected some time in March -- Kyra.

PHILLIPS: When do you think passengers will be flying in these planes?

MESERVE: Yes, you might want to know considering what you're hearing here.

(LAUGHTER)

PHILLIPS: Exactly.

MESERVE: The delivery of the first planes is slated to begin at the end of the year. But I just spoke to someone from the company who says those early planes at least will not have that Internet connectivity. And so what we have been talking about here won't be an issue at all, at least for those first aircraft.

PHILLIPS: All right, Jeanne Meserve, thanks.

MESERVE: You bet.

LEMON: Seventeen past the hour -- three of the stories we are working on for you right here in the CNN NEWSROOM.

Body bags carried out of a Washington, D.C., row house. Police there are questioning a woman in the deaths of four children whose decomposing bodies were found in that home. We're awaiting police any minute now. They should hold a press conference. And they will bring us up to date in a live report at the half-hour, if we get it for you.

Another tragedy involving kids -- Alabama police are searching for the bodies of four young children after their father allegedly confessed to throwing them off of a bridge. Police say the man got angry after an argument with his wife. They kids were between four months and 3 years old.

No bail for Gary Hilton, who is charged with kidnapping and killing a hiker in the mountains of north Georgia. Police say 24- year-old Meredith Emerson died of a blow to the head three days after she vanished. PHILLIPS: On to Michigan, Nevada, South Carolina and beyond -- fresh from their wins in the New Hampshire primary, John McCain and Hillary Clinton and their opponents take the race for the White House to the next level.

McCain took the Republican primary in the Granite State, beating his closest rival, Mitt Romney, by 5 percentage points. Clinton won the Democratic primary by a two-point margin over her closest rival, Barack Obama.

And after his narrow loss to Hillary Clinton in New Hampshire, Barack Obama is holding a rally close to Clinton's home turf.

CNN's Suzanne Malveaux joins us now from Jersey City, New Jersey.

Hey, Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Hey, Kyra.

Well, camp Obama is moving on. I have spoken with aides. And they are really dismissing New Hampshire as a fluke. They believe the reason why he lost there was because of that one defining moment, they say, the near tearful moment that Senator Clinton had with one of the voters and the aftermath, one senior aide saying, thankfully, that is not a moment that can be duplicated.

So they feel that they have a lot of strength, a lot of momentum that is moving forward. Now, what is their strategy? Are they tweaking it just a little bit? Well, they say there are some things that are definitely working for them. That is to focus on his message of hope and vision, also to paint Clinton as a pessimist, and to focus on bringing in new young, first-time voters and those female voters. They know that that is a tough sell, that they have a lot of work when it comes to the women vote.

They got it in Iowa. They lost it in New Hampshire. They're going to try to get it back now. And there are some things that are working in their favor. They are going to have a rally here. Obviously, they're bringing a lot of young voters. They're doing some serious fund-raising, very aggressive fund-raising. They say they have raised about $8 million in the first eight days of this year.

They are going to have a fund-raiser later in New York City. And then they are moving ahead to two key states, as you know, South Carolina, where the Democratic Party, the voters there, majority African-American. They are counting on that particular group, and in Nevada as well, two key endorsements, union endorsements they hoping to catapult him into Nevada and really hope that that is a springboard into moving to the states and to keep the momentum going.

Obviously, it was a big surprise for them. They had expected as much as a 12-point spread, a lead in New Hampshire. But they are learning lessons from this. They say they have got a lot of work ahead, but they're ready to do it.

And, Kyra, one person described it to me, saying, this is a dogfight -- Kyra.

PHILLIPS: Oh. And every candidate loves a good dogfight, wouldn't you say, Suzanne?

(LAUGHTER)

MALVEAUX: Absolutely.

PHILLIPS: All right. We will be talking again.

And for more on the New Hampshire primary and the next stops for the presidential candidate, go to CNNPolitics.com. It's your one-stop shop for all things political.

LEMON: So many questions about the decomposing bodies of four kids found in a Washington house -- an update straight ahead.

(COMMERCIAL BREAK)

(BUSINESS REPORT)

PHILLIPS: Well, they came to deliver an eviction notice, but U.S. Marshals in Washington stumbled into something awful, four dead bodies, all believed to be children, aged 5 to 18.

Here with the latest now, CNN's Brianna Keilar.

What are you finding out, Brianna?

BRIANNA KEILAR, CNN CORRESPONDENT: Hi, Kyra.

Well, at this point, we're awaiting a press conference with D.C. Police. That's expected to start any minute now. D.C. Medical Examiner's Office still on scene -- they have just brought the fourth of four bodies out, as you said, all of them believed to be kids between the ages of 5 and 18 years old.

This is a two-story townhouse here in southeast Washington. Police say that these kids were dead for -- quote -- "more than several days." These bodies were discovered by U.S. Marshals who came to the house this morning to serve an eviction notice. They were met by a woman who allowed them in the house, didn't resist.

They haven't told us many details about her, but they did take her away. D.C. Police took her away to ask her questions.

Here is what Chief Lanier said about that woman.

(BEGIN VIDEO CLIP)

QUESTION: Do you know the age of the woman who is being questioned?

CHIEF CATHY LANIER, METROPOLITAN POLICE: No. I can tell you that she is an adult woman, but I don't have an age on her at this time. QUESTION: Is she the mother of the four?

LANIER: We don't know that yet. We haven't confirmed her identity. She was in the home and opened the door and let the marshals in this morning. So, right now, we are working on a lot of assumptions until we verify identities.

QUESTION: Is she cooperating with investigators?

LANIER: I couldn't tell you that, Mark (ph). She just left the scene not that long ago.

OK?

We should have some more information later in the day.

(END VIDEO CLIP)

KEILAR: And, again, we are awaiting another press conference with D.C. Police Chief Cathy Lanier. We are expecting to learn more details here any moment.

But an interesting question was raised by Councilmen Marion Barry, who represents this area of the city. He is the former mayor of D.C. He wondered aloud why, if these kids had been missing -- they're obviously school-aged -- why, if they had been missing from school, did no one notice that they were missing?

And, at this point, that is still a question that is unanswered -- Kyra.

PHILLIPS: All right. I know it is developing, and we just found out about this, Brianna. We will let you work your sources.

And is there something going on behind you?

KEILAR: Yes. We're -- we can see Chief Lanier and Mayor Adrian Fenty approaching the microphones. We are expecting here, in just a matter of seconds, that they will be starting their press conference -- Kyra.

PHILLIPS: All right. Keep us posted on what they say, Brianna. Just let us know. Appreciate it. All right.

LEMON: And, speaking of press conferences, this just in to the CNN NEWSROOM: Police in Tallahassee, Florida, are expecting to hold a press conference very shortly to talk about Gary Michael Hilton.

Gary Michael Hilton is the man accused of killing Meredith Emerson. She was that Georgia hiker, and they found her body in the woods. He actually led her -- led police to her body. And then she was bludgeoned to death in the woods -- the northern woods of Georgia.

Well, police in Tallahassee -- here's what they're saying. They're saying that he is the focus of an investigation there in the death of a woman of -- her last name of Dunlap. I think it was -- wait a minute, let me make sure I get her name correct here.

PHILLIPS: Cheryl Dunlap.

LEMON: Cheryl Dunlap in Florida. This is all just coming in.

He's also suspected in North Carolina. The FBI met there yesterday to talk about the possibility that Hilton was connected with the disappearance of an elderly couple back in October. But, again, he is accused with Meredith -- of killing Meredith Emerson. That was in the Georgia woods. But then police in Tallahassee, Florida are saying that he is also connected to another death there -- a body found that was in the woods, as well, in the Apalachicola National Forest.

They're going to hold a press conference there very shortly to talk about this developing news happening now -- Kyra, I think we have something else now.

PHILLIPS: We're are going to go to the press conference now. It's being held there in Jersey -- on those four dead children that were just found.

UNIDENTIFIED MALE: They quickly called the Metropolitan Police Department. And the Metropolitan Police Department arrived on the scene. The police department found one person on the scene in addition to the four dead bodies. That one person is -- has been and is currently engaged in question and answer with the Metropolitan Police Department. For reasons that the chief will talk about, neither that person's name nor the four bodies that have been recovered and are now, as we speak, being taken away can be given out at this time.

One, the four bodies, as we have just talked to the chief medical examiner's office, are in such an advanced state of decomposition that they cannot be verified right now. It is going to take scientific tests run by the chief medical examiner's office to actually do the verification. We plan on having a press conference with the chief medical examiner's office in the morning to talk a little bit more about how that will go.

The other thing that the chief medical examiner is looking into is what is the cause of death?

And the chief will talk about fact that we are looking at this as a homicide. However, as of right now, with, again, the advanced state of decomposition, it is impossible to say whether or not that is the case. So that is being looked at.

And the other thing that the chief medical examiner's office is looking at, in addition to how this happened and what the identities of the victims are, is how long the bodies were there. Again, this is -- these bodies are in an advanced state of decomposition.

In just a brief conversation with the chief medical examiner, it looks like the bodies were there at least two weeks. Obviously, that -- for anyone who follows any issues like that -- is an enormously long time. So the police department is going to have to look into all the circumstances surrounding how this occurred. But suffice it to say the police department, the chief medical examiner's office, the United States attorneys and everybody and anybody who will be able to find out exactly what happened and then hold someone accountable and bring them into custody will be done as quickly as possible.

Now I'll turn it over to Chief Kathy Lanier to provide more information on the investigation.

QUESTION: (INAUDIBLE)?

UNIDENTIFIED MALE: Can you just give me one second. The chief will speak, we're going to answer questions and then we're going to...

QUESTION: (INAUDIBLE).

UNIDENTIFIED MALE: We're going to address the community. Let the chief speak and then we'll answer questions for the media.

Thank you.

CHIEF CATHY LANIER, METROPOLITAN POLICE: OK. I'm going to try and answer as many questions as possible. I understand that there really is a need for us to answer questions to the community and for the members of the press that are here.

I want to reiterate that there are children involved here. And when there are children involved, there are sensitivities that I would ask that everybody try and respect.

We, as the mayor said, we got here about 10:00 this morning -- just before 10:00 -- at the request of the U.S. Marshals. And in the process of trying to carry out an eviction, they were let into the house by an adult woman, who shortly after they let into the house, the marshals discovered bodies of four people in the house, all of which appear to be children or very young adults.

Once the Metropolitan Police Department arrived on the scene, we have begun an extensive investigation. The obvious questions, is there any signs of forced entry? No. There are no signs of forced entry. I think that's important to say because I don't want the impression that maybe somebody has kicked in the door and gone in and carried out this crime.

However, it's important, also, to say that it's because of the state of the bodies that have been found inside, it is going to take us some time to verify the identification of these children and verify the cause and manner of death.

As the mayor said, we are investigating this as a homicide. Obviously, we're going to investigate it as if it is, but there will be no ruling as to whether it is a homicide until the medical examiner does an examination of the bodies to determine what the cause of death was.

The reason that's so difficult right now,, as the mayor alluded to, is that depending on environmental conditions, decomposition can take place at very different rates over different periods of time. So it's hard for us to say and hard for the medical examiner ...

PHILLIPS: Chief Kathy Lanier there in Jersey City.

What a sad story coming out of there. I guess it started at 10:00 -- oh, it's out of D.C. . It's not in Jer -- the location is not Jersey?

OK. We are told it is not Jersey. It's in Washington, D.C. We apologize for that. We had the wrong location.

Here's what happened. U.S. Marshals were sent to this home, expecting to just carry out an eviction notice. But what they found were four dead bodies. And you heard the police chief there -- all believed to be children or young adults age five to 18. They were in such an advanced state of decomposition that they are not able to identify those bodies at this point.

They are being taken to the coroner's office. Advanced tests, special tests will have to be done. The chief saying that those bodies were probably in that home for at least two weeks. One woman opening up the door, letting the U.S. Marshals in. That's when they found the four dead bodies. The investigation goes forward from here and we'll keep you updated as we get more information.

LEMON: Confrontation from the U.S. Navy's point of view -- video of this week's high seas run-in with Iran.

(COMMERCIAL BREAK)

PHILLIPS: The United States said it was provoked. Iran says it's fabricated. At issue -- -- a near showdown Sunday between the U.S. and the Islamic Republic in the Strait of Hormuz. The U.S. said it almost fired on Iranian speedboats menacing a trio of American ships. Iran says the U.S. Navy is faking its evidence.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I am coming to you.

UNIDENTIFIED MALE: Inbound small craft. You are approaching a coalition warship operating in international waters. Your identity is not known, your intentions are unclear. You are straying into danger and may be subject to definitive measures. Request you establish communications now or alter your course immediately to remain clear of me. Request you alter course immediately to remain clear.

UNIDENTIFIED MALE: You will explode after a few minutes.

UNIDENTIFIED MALE: You will explode after a few minutes.

(END VIDEO CLIP)

PHILLIPS: Well, the Strait of Hormuz is a narrow waterway linking the Persian Gulf in the Indian Ocean. It's long been one of the world's most important waterways. And the reason comes down to one word: oil.

(BEGIN VIDEO TAPE)

PHILLIPS (voice-over): At least one fifth of the world's crude oil supply passes through the Strait of Hormuz into the Persian Gulf. Iranian military leaders repeatedly have warned that if attacked by the U.S., one means of retaliation would be to block the Strait. A look at a map shows it wouldn't be hard to do. At its narrowest point, the Strait is only 35 miles across. In addition to crude oil, some two million barrels of oil products and liquefied natural gas pass daily through the Strait.

Ninety percent of the oil exported from Gulf producers is carried on oil tankers that sail through the Strait. The U.S. military also relies on the Strait to ship heavy armor and other supplies to American forces in Iraq and other Middle East countries.

Japan, a major U.S. ally, gets more than 75 percent of its oil through the Strait. The recent confrontation between U.S. warships and Iranian speedboats is just the latest aggressive incident to occur in the Strait. One of the most deadly happened in 1988, when a U.S. Navy warship mistakenly shot down a Iranian jetliner over the Strait, killing all 290 people on board.

(END VIDEOTAPE)

LEMON: President Bush is on his first official visit to Israel and later to the Palestinian Territories. He and Israel's prime minister spoke to reporters a short time ago. An optimistic Mr. Bush said Palestinians should realize there's more than peace and security at stake.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The best way the make sure that the Palestinians realize there's a hopeful future in which its in their interests to live in peace with Israel is for them to realize that they've got an economy in which they can make a living. And Tony Blair is helpful on that. And so is America.

And so you're watching three tracks parallel each other. And the one, of course, you're asking about is whether or not the leadership has got the willingness and the desire and the drive to design a state compatible to both sides. And my answer is yes, I think they will.

EHUD OLMERT, ISRAELI PRIME MINISTER: I think your visit is timely and is very important to encourage the process that you and Secretary Rice helped start in Annapolis a few weeks ago. And that we -- both sides, I believe, are very seriously trying to move forward with now in order to realize the vision of a two state solution.

(END VIDEO CLIP)

LEMON: The president's itinerary -- Israel today, a meeting with the Palestinian president tomorrow, several stops throughout the Middle East in the coming days. The presidential hopefuls leave New Hampshire behind -- but not before some pollsters and pundits take one on the chin.

What's next on the race for the White House? We'll look ahead.

(COMMERCIAL BREAK)

LEMON: All right, let's review a few headlines out of New Hampshire.

The one time Democratic frontrunner was supposed to lose but instead she won. And the Republican winner's campaign was given up for dead just a few shorts months ago.

So how did Hillary Clinton stage her comeback? I asked senior political analyst David Gergen and CNN contributors Donna Brazile and Carl Bernstein.

(BEGIN VIDEOTAPE)

CARL BERNSTEIN, CNN CONTRIBUTOR: She knows it hasn't worked up until now their way. Apparently, she's bringing in her own chief of staff from the White House, Maggie Williams, to coordinate the campaign. Mark Penn -- who is really in there because of Bill -- is going to have a lesser role.

But the most important thing is that she is beginning to show herself a little bit as a real person. You saw it in the debate when she said a number of things, including, look, I'm running as a woman running for president. That's the first time we've heard that. She can be very -- David knows this. He worked with her. She can be very compelling.

What we have seen until now has been a campaign for restoration of the Clintons -- plural -- for the White House. And I think there has been a great deal of response against it among many rank and file Democrats who otherwise hold the Clintons in some affection.

LEMON: Yes. And I want to say this a minute, and then we're going to move on to the Republicans. It doesn't seem to -- what happened last night doesn't seem to have stopped the momentum as it concerns Barack Obama. In the first eight days of 2008, we're getting word from his campaign that he raised $8 million. And just since midnight last night, $500,000.

Donna, real quick, just tell me about that. It's not stopping the momentum here?

DONNA BRAZILE, CNN CONTRIBUTOR: Oh, absolutely not. Obama has ignited something in this country. He's a magical candidate. Look, he will come under, you know, additional scrutiny over the next couple of weeks. But I do believe that he's ready and prepared to be president. That's clearly something the voters will have to decide.

But in terms of change, he has started a conversation, and now Clinton has decided to join it. And that's a good thing for the Democratic Party and it's good for the country.

LEMON: OK. And David Gergen ...

DAVID GERGEN, SENIOR POLITICAL ANALYST: Can I -- can I ...

LEMON: Go ahead, David.

GERGEN: Can I just add one point?

LEMON: Yes.

GERGEN: Whether you like Obama or Clinton, I must tell you, I think last night's results were fundamentally healthy for the country, for the campaign and for the candidates. What it means is we're not going to have a rush to coronation.

We were on the verge of just anointing Barack Obama. This is going to put him through further testing. He needs that as a young candidate. He needs more vetting. Other parts of the country want to have a voice in this.

I'm out in California. I can tell you when I talked to an audience of 3,000 last night in Oakland and said that Hillary Clinton had won, they erupted in applause. But they also made it very clear, they want a voice. They want -- they don't want to leave this just to Iowa and New Hampshire. This is very healthy to have this campaign go on -- on both sides.

LEMON: OK. Yes. And I want to talk about that.

Now, John McCain. I mean everyone said -- I mean this campaign was dead in the water as of a couple of months ago -- maybe even a couple of weeks ago. Does this revive him? And what kind of momentum does this give him -- Carl?

BERNSTEIN: Obviously, it does. And I think, also, it's a response to another candidate, Mitt Romney, who has said everything to suit anybody -- any audience that he's after. I think it's a kind of demonstrable pandering, the likes of which I have rarely seen, even in presidential politics.

And I think he stepped all over himself against McCain, who is a candidate known for straight talking, for integrity. I think Romney's going to have a very difficult time. It's given new life to the possibility that Giuliani can do something, as well as kept Mike Bloomberg in the background, still humming away, thinking he wants to get into this thing.

(END VIDEOTAPE)

LEMON: The next big showdown among Clinton, Obama and the rest of the Democrats comes a week from Saturday in the Nevada caucuses. John McCain and his fellow Republicans square off next Tuesday in the Michigan primary.

And for more on the New Hampshire primary and the next stops for the presidential candidates, go to CNNPolitics.com. It is your one stop shop for all things political. PHILLIPS: All right, time to see what's clicking with all you CNN.comers right now -- some of our most viewed video this hour.

A U.S. military drone apparently captures an execution in progress in Iraq. The victim was dragged from a car trunk, thrown into a ditch and then shot.

Pennsylvania police say that a gym teacher has admitted that she had sex with a 14-year old student. They also found nude pictures of her on the boy's cell phone.

And a Texas toddler left behind at Chuckie E. Cheese on Saturday, but her family didn't know it until Monday -- due to a miscommunication, they say, among relatives.

Those stories plus weather and a whole lot more at CNN.com.

LEMON: Dead men tell no tales and they cash no checks, either. So two New York men allegedly tried to help themselves when their friend passed away. It is a bizarre story, even by New York standards.

The story from Nina Pineda of our affiliate WABC in New York.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: It could happen anywhere, but it's typical of that comment -- only in New York. You never know what you could see.

NINA PINEDA, WABC CORRESPONDENT (voice-over): New Yorkers think they've seen it all, but a dead body slumped in an office chair -- that's something new.

RAPHAEL REYNOSA, EYEWITNESS: And I see these guys pulling this body in a chair -- in a computer chair.

PINEDA: What this witness saw was Virgilio Cintron. And he had been wheeled down 9th Avenue on a rolling office chair, parked in front of this check cashing store while two men tried to steal his Social Security check by attempting to convince the Pay-O-Matic cashier their buddy was alive.

REYNOSA: He wasn't breathing at all.

UNIDENTIFIED MALE: He was clearly dead to you?

REYNOSA: He was clearly dead to me, yes.

PINEDA: An off-duty police officer saw the whole sick shenanigan and questioned the men.

REYNOSA: The officer said, "What are you guys doing?"

And he was trying to take the body inside the cashier. So he -- the officer stopped them.

PINEDA: One might be a roommate of the 66-year-old. Cintron died of natural causes before he was so unnaturally treated in the hours after he passed away.

UNIDENTIFIED MALE: I wouldn't believe my eyes. And they should definitely be charged with something.

Where did they get the dead body?

(END VIDEOTAPE)

LEMON: That was Nina Pineda from our affiliate WABC in New York. Both suspects in this case face check fraud charges.

It's time now to check in with CNN's Wolf Blitzer.

PHILLIPS: He's standing by in "THE SITUATION ROOM" to tell us what's coming up at the top of the hour -- hey, Wolf.

WOLF BLITZER, CNN ANCHOR: Hi, guys. Thanks very much.

Entrance polls is fighting against the Hillary Clinton and Barack Obama tides. After coming in third in New Hampshire, can his campaign survive? I'm going to be speaking with the Democrat live. That's coming up in the next hour.

Plus, the pollsters apparently got it wrong -- in the Democratic race, that is, in New Hampshire. Did voters change their minds? We're going to try to figure out what happened.

And President Bush turning up the heat on Iran after a confrontation on the high seas. We'll tell you what why he's telling the Iranians don't do it again.

All of that, guys, coming up right here in "THE SITUATION ROOM."

LEMON: All right, Wolf. Thanks.

PHILLIPS: The Air Jordan is back -- the 23rd edition. But it's not cheap. Plus, the closing bell and a wrap of the action on Wall Street straight ahead.

(COMMERCIAL BREAK)

PHILLIPS: Well, it's a couch potato's dream -- kick back, put your feet up, enjoy the view on a wall-sized television. So far, you can only see this high def plasma number at a consumer electronics show in Vegas.

LEMON: Wow!

PHILLIPS: Speaking of numbers, Panasonic says that it's 150 inches -- the biggest flat panel TV in the world.

LEMON: I'd knock down a couple of walls for that.

PHILLIPS: Can you imagine, you and me and 150 inches? That's frightening.

(LAUGHTER)

PHILLIPS: All right, the closing bell is about to ring on Wall Street.

Susan Lisovicz is another story, though.

LEMON: Susan Lisovicz...

PHILLIPS: Wolf, Susan Lisovicz and 150 inches.

(LAUGHTER)

(CROSSTALK)

SUSAN LISOVICZ, CNN CORRESPONDENT: Yes, as long as it's not, you know, my waistline or anything like that, Kyra and Don. You have to buy the house then to go with, you know, the big plasma screen.

Hey, Don, I know you used to work in Chicago. I know you love the second city. Number 23 has special significance to you, doesn't it?

LEMON: Is that the address?

(LAUGHTER)

PHILLIPS: I think she's joking?

LEMON: Oh, a uniform.

LISOVICZ: You don't remember number 23!

LEMON: I thought you were talking about my age.

LISOVICZ: No.

(LAUGHTER)

LISOVICZ: No.

LEMON: You were talking about Michael Jordan. I know that.

LISOVICZ: Yes. See, everybody knows we don't rehearse this stuff. We certainly don't read it from a teleprompter.

Yes, Michael Jordan, number 23, leading the Chicago Bulls to six NBA championships. The Air Jordan now about to make its 23rd release -- that is, the 23rd edition of the Air Jordan. It's got to be the shoes. And there he is, his "Royal Airness," with it looking sleek as ever.

LEMON: You threw me with that second city thing. I was thinking Second City, the improv theater thing, not the Second City, Chicago.

LISOVICZ: You know...

PHILLIPS: Excuses, smushes (ph). LISOVICZ: Excuses.

Well, listen, did you know this?

LEMON: What?

LISOVICZ: That when the first edition came out, the NBA actually fined Michael Jordan $5,000 per game because it had a shock of red and black and it didn't subscribe to the regulation colors or color.

LEMON: Oh.

LISOVICZ: It totally revolutionized the sneaker industry. Nike, by the way, paid the fine. The special edition will go -- the first edition will go out to 23 retailers -- $230 per. You know, Nike has actually issued the first release of Air Jordan on weekends so kids would not cut school to get these shoes.

PHILLIPS: You know what? Bring back Chuck Taylors. That's what I say.

LISOVICZ: Love those, too.

PHILLIPS: Bring back the Chuck Taylors.

LISOVICZ: Love the high tops and another...

LEMON: (INAUDIBLE) Smiths and the Converse and the...

LISOVICZ: Yes.

LEMON: We're showing our age now.

PHILLIPS: This is the day of the Harlem Globetrotters.

LISOVICZ: Yes, hey, listen...

PHILLIPS: Come on now.

LISOVICZ: They're timeless.

Now, you know, Michael Jordan scored a lot of points for the Bulls.

(STOCK MARKET REPORT)

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