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American Morning
Democrats Debate Tonight in L.A.; Wild Winter Causing Construction Chaos; World Markets React to Fed Rate Cut; Wounds of War: Study of Brain Injuries; Governor Schwarzenegger Dissects the Debate and GOP Candidates
Aired January 31, 2008 - 07:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEO CLIP)
KIRAN CHETRY, CNN ANCHOR (voice-over): Republican rumble.
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: We've got to get our fiscal house in order.
MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: Middle income families are feeling squeezed.
CHETRY: Plus, then there were two. Clinton and Obama go head to head in the second round of our debate double-header. The "Most Politics in the Morning" live from L.A.
Passport, please. New rules at the border. What you need to know.
A nation of extreme, floods, winds, ice, and a January surprise on this AMERICAN MORNING.
(END VIDEO CLIP)
CHETRY: And welcome. It is Thursday, January 31st, a special edition of AMERICAN MORNING today. I'm Kiran Chetry. We're live in New York Central Park, and this is where the surprise is, John, which I'll tell you about in just a second.
JOHN ROBERTS, CNN ANCHOR: Yes. Well, one of the surprises this year, I guess, is that there's been no snow. So, I don't know, maybe you got some snow this morning. That would be great to see.
I'm John Roberts. We are outside the Kodak Theater in Hollywood, California. It's a big night for the Democrats here. The field of presidential contenders has been whittled down from eight, now only two remain, Clinton versus Obama. The CNN Democratic debate is certainly the hottest ticket in town. The California Democratic Party says they're even getting more requests for tickets for this debate than they're getting for the Oscars.
It's the last face-off before more than 20 states vote in a huge Super Tuesday contest next week, February 5th. Barack Obama and Hillary Clinton will be fighting it out now for the Democratic nomination after John Edwards suspended his campaign yesterday. And a big endorsement on the Republican side today. CNN has learned that California Governor Arnold Schwarzenegger will give his support to Senator John McCain. The announcement will come today at a visit to a solar energy facility. People familiar with Schwarzenegger's plan said the governor did not want to upstage last night's debate by making his preference known either during or after the debate took place -- Kiran.
CHETRY: John, in 75 years, there has not been any measurable snowfall in all of New York City. That's about eight inches below normal for the month of January. Of course, we have been talking about wild and extreme weather across many other parts of the country. There was icy flooding in Buffalo, New York. The residents of the city's First Ward said it was the worst they've seen in years. The Buffalo River flowing down the street literally after near hurricane force winds blew that ice around yesterday afternoon. Also, strong winds sent a scaffolding down outside of Boston that crushed a construction trailer and a pickup truck. Thank goodness, no one was hurt in that.
Also, snow covered roads and bitter cold in Wisconsin as well. It's warming up slightly there after temperatures plunged more than 50 degrees in a matter of hours. We saw that across much of the Midwest and even out in the pacific northwest. Still some dangerous times there in some parts of the state of Wisconsin. Also, an avalanche on Interstate 90 trapped two cars. This was in Washington State. That section of roadway closed for more than a day as crews looked for other cars in a 400-foot long by 30-foot deep area. There were no injuries reported there either.
They also had the winds, but it was bone dry across parts of Texas. That was the perfect formula for wildfires there. Texas Governor Rick Perry actually declared a state of emergency for 152 counties in Texas yesterday, as those flames driven by the wind spread. Homes were destroyed. They ordered evacuations as the fires burned some 19,000 acres across Texas.
And also just in right now, a tornado watch. This is in the south. Reynolds Wolf is in for Rob Marciano. He's tracking extreme weather for us right now. Good morning, Reynolds.
REYNOLDS WOLF, CNN METEOROLOGIST: Good morning to you, Kiran. You're right. We have a tornado watch that was issued by the Storm Prediction Center out of Norman, Oklahoma, for parts of Texas and into Louisiana. It will remain in effect until 1:00 local time.
Let's go right to the weather computer. What we're going to do is actually zoom in on that location farther to the south. Here it is. Stretching from just near the Houston area, back over towards Baton Rouge, Louisiana, as you see on the far left-hand corner of the screen, you see that frontal boundary coming through. What they're banking on is the possibility of seeing some tornadoes spin up along parts of I-10. So we'll certainly keep an eye on that for you.
Meanwhile, farther to the north, it's not a combination really of just rain but rather that cold air vecting in from the north. You've got plenty of moisture coming in from the south and it's going to be right into portions of the Midwest, including St. Louis, where you could see some very heavy snow falls. Some locations possibly up to a foot of snow.
Let's talk about some delays you may deal with today, especially in places like Boston, back into the New York Metro Area and into Philadelphia, anywhere from 30 minutes to 45 minutes, due to some of the wind. This is definitely going to cause some issues for you. Meanwhile, in a few other locations, namely in places like Atlanta, look for about pretty much the same deal, up to an hour in St. Louis, due to that potential for snowfall. Some of it beginning this afternoon and into the evening and tomorrow. And then for Seattle, looking at arrival and departure delays due to the rain and the low clouds and visibility is going to be awfully poor. These pilots flying, of course, with I-4 (ph). That's the latest we got for you, Kiran. Let's send it back to you in snowless Central Park.
CHETRY: Snowless? And we want to talk about why, Reynolds, it's going to be interesting to look at the reasons why we didn't see a lot of snow here. We're talking with the spokeswoman for the Farmer's Almanac. You know, it's their job to predict the unpredictable each year. So she's going to tell us about the lack of snow here, and then also looking ahead to Groundhog Day. What can we expect in terms of spring?
And as I head back inside, let me just say it was the wrong choice today to not wear pants. I don't know if you can see. Thank goodness for the Ugg boots but, Reynolds, it actually feels better after your legs freeze because then they don't hurt anymore. I'm heading back inside, and we'll be talking to Sandy Duncan coming up in about an hour -- John.
ROBERTS: All right. Looking forward to it. Thanks, Kiran.
The Republican presidential candidates squaring off at last night's final debate before Super Tuesday at the Ronald Reagan Presidential Library. But John McCain and Mitt Romney stealing the spotlight yet again with their personal attacks against each other.
(BEGIN VIDEO CLIP)
MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: I guess I'd also note that if you get endorsed by the "New York Times," you're probably not a conservative.
ANDERSON COOPER, CNN ANCHOR: Senator McCain?
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: Let me note that I was endorsed by your two hometown newspapers...
ROMNEY: I know.
MCCAIN: ... who know you best including the very conservative "Boston Herald" who know you well better than anybody.
ROMNEY: I'd say the same thing. (END VIDEO CLIP)
ROBERTS: Who is more conservative? Who's the better leader? Who's got the best economic plan? All major points of contention last night inside the Reagan Library. CNN's Dana Bash who's watching it all, she joins me now live. Dana, this looked very much like the Democrats debate a week ago in Myrtle Beach.
DANA BASH, CNN CORRESPONDENT: It did. It was very confrontational particularly over the issue that the McCain thinks is his biggest strength. That, of course, is national security and Iraq. But, you know, at the same time, John, Governor Romney really tried to get at the credibility, even character of John McCain, the candidate he says is all about straight talk.
(BEGIN VIDEOTAPE)
BASH (voice-over): You want to know how raw this Republican race is, just look at those glares and listen.
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: Timetables was the buzz word for withdrawal.
(CROSSTALK)
MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: I'm not using the actual quote. That's not what I said.
BASH: The testy exchange over a fight John McCain picked with Mitt Romney in Florida, accusing him of supporting a timetable for troop withdrawal in Iraq.
ROMNEY: I do not propose nor have I ever proposed a public or secret date for withdrawal.
BASH: Romney was quick to invoke the GOP icon whose library was host.
ROMNEY: It sort of falls in the kind of dirty tricks that I think Ronald Reagan would have found to be reprehensible.
ANDERSON COOPER, CNN ANCHOR: Senator McCain, tough words.
MCCAIN: Well, of course, he said he wanted a timetable.
BASH: Just five days before votes in 21 states, they mostly clashed over conservative credentials. Mitt Romney is trying to halt McCain's momentum by questioning his.
ROMNEY: I believe. If I'm correct -- correct me Senator, he voted twice against the Bush tax cuts. Only two Republicans did that.
BASH: McCain shot right back.
MCCAIN: As I understand it, his record was that he raised taxes by $730 million and that he called them fees. BASH: But on one huge McCain weak spot were conservatives, illegal immigration, a concession.
When asked if he would vote for his own legislation allowing citizenship --
MCCAIN: No, I would not because we know what the situation is today. People want the borders secured first.
BASH: And more than once, a stern reminder from Mike Huckabee, it's not a two-man race.
MIKE HUCKABEE (R), PRESIDENTIAL CANDIDATE: You want to talk conservative credentials, let me get in on that. The only person that's sitting here today that is consistently supported the human life amendment.
(END VIDEOTAPE)
BASH: But with what is essentially a national primary just five days from now, John, and, of course, the Super Tuesday, the key for these campaigns is to get as much national coverage as possible especially without spending a lot of money. Now, John McCain did that pretty successfully a day earlier with his big endorsement of Rudy Giuliani as he dropped out and hoping for an encore today with an endorsement, just a few hours we're told, from California's governor, Arnold Schwarzenegger.
ROBERTS: That will be a big one for him.
BASH: Yes.
ROBERTS: So, Dana, this was the last chance for these candidates in a public forum to try to define each other.
BASH: Yes.
ROBERTS: How do you expect the next couple of days of campaigning are going to go? Will they perhaps switch to the positive or do you think they'll still stay on the negative?
BASH: It's hard to see them switch into the positive because, you know, they really were positive, if you will, up until the last couple of days before the Florida primary, and it just became so intense and there was such a struggle, as you said, to define themselves and more importantly one another, that's it hard to see this not continuing. What is really interesting is that, because this is so big in terms of 21 states, is that -- you know, Governor Romney, he spent so much money, as you know on television ads in all the other contest states. He told this morning, he has not bought any TV time in any of these states.
So, it seems, though, what they're going to be doing is relying on again, free media, trying to get out as much as they possibly can. Just do interview after interview after interview in all of these states just to, you know, see if they can get any kind of traction, particularly for Governor Romney.
ROBERTS: Yes. And run going into Tuesday. Dana Bash, thanks very much.
BASH: Thank you.
ROBERTS: I caught up with Mitt Romney and John McCain immediately after the debate last evening and asked them about the swipes that they've been taking at each other.
(BEGIN VIDEO CLIP)
ROBERTS: Senator, you went at Governor Romney pretty hard tonight. Why did you feel the need to do that this evening?
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: Yes. It was really responding, I think, to the critical issue of our time is whether we withdraw from Iraq and whether we set a timetable or not, and I think that it was a very spirited conversation about that. That's what people went to see.
MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: Everybody said what he said was just simply wrong, reprehensible. I think it was a huge mistake on his part. He wants to stick with it, so he's going to take the shots for it as long as he's doing that. Senator McCain is just I think out of step with Republicans on issue after issue, and that's what is going to hopefully get me the nod.
(END VIDEO CLIP)
ROBERTS: I also talked with California Governor Arnold Schwarzenegger after the debate to get his thoughts on the back and forth. We'll have that for you in about 15 minutes time here at AMERICAN MORNING.
And tonight, it is the Democrats turn. The once eight person Democratic field now down to just two. Hillary Clinton and Barack Obama will take the stage here at the Kodak Theater for their last debate before Super Tuesday. It is the first time that the candidates will debate one-on-one after John Edwards suspended his campaign yesterday. Win or lose, the Democrats will make history this year, choosing either a woman or African-American as the party's nominee.
CNN Democratic debate begins tonight at 8:00 Eastern. Wolf Blitzer will moderate. You can catch an encore presentation of the Republican debate today at noon Eastern right here on CNN.
On the "Financial Security Watch" today, we are watching world stock markets respond to the Fed's rate cut here in the United States yesterday. Hong Kong's Hang Seng index closed down almost one percent, but Tokyo's Nikkei closed almost two percent higher. European markets right now are trading mostly down. So, mixed around the world right now. We'll see how the Dow does, coming up at 8:30, 9:30 rather.
The Senate's Finance Committee approved a bill Wednesday to help stimulate the economy. It gives one time tax rebates to millions of Americans. The Senate's version could be up for a vote today. It calls for extending unemployment benefits. The White House, or the House rather and the White House say that they would prefer the version the House approved so Americans can get their rebate checks faster.
Well, a new study funded by the military says soldiers who suffered concussions in Iraq are at much higher risk of getting post- traumatic stress disorder. CNN's chief medical correspondent Dr. Sanjay Gupta is here now with the details. So, let's look at traumatic brain injury which we've heard you report so much on and post-traumatic stress disorder, whether the two are connected or whether they're separate. What did they find out?
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Yes. That's exactly right, and specifically mild traumatic brain injuries. So people who may have had concussions, people are referred to as getting their bell rung, for example. The numbers are starting to coming back, John. About one and five people throughout the 18 to 20 percent, have had concussions either in Iraq or Afghanistan. The question that you're asking and a lot of people are asking, what next? What they're finding is about 44, nearly half of those people go on to have post-traumatic stress disorder. That's a very high number. And even more than that, a lot of the symptoms associated with a head injury, such as headaches, such as dizziness, lack of sleep -- all these sorts of things in the long run, more chronic problems seem to be more associated with the post-traumatic stress disorder than the concussion itself. So concussion leading to the PTSD, leading to a lot of this sort of vague, sort of longer-term symptoms.
ROBERTS: Well, I know. This maybe is more applicable to the civilian world because we don't talk too much about post-traumatic stress disorder here. But there is something called post-concussive syndrome.
GUPTA: Absolutely.
ROBERTS: Is this similar?
GUPTA: It is, and this is interesting. This particular study that you're referring to, published in the "New England Journal of Medicine" had a hard time distinguishing between what is post- concussive syndrome, exactly what you said, and post-traumatic stress. And the way that they sort of figured this out was they took people who had concussions but did not develop PTSD, and figured out what sort of symptoms that they had in the long run versus people who had concussions and did develop PTSD and figured out their symptoms.
What they're trying to say is, look, are we targeting the most effective treatment for these chronic long-term problems? Should we sort of treating the post-concussive thing --
ROBERTS: Is it a suggestion that maybe antidepressants might help?
GUPTA: Well, there's lots of different treatments for post- traumatic stress disorder. Some of it does involve medication -- sometimes antidepressants, sometimes anti-anxiety medications, sometimes it's sort of immersion therapy. Actually, taking people back in, in a safe way back to the area where they were.
I saw a lot of this when I was out in Iraq. You know, actually seeing a lot of these head injuries out there and seeing how they treated people at the scene, at the time. So, you know, treating them then, treating them in the long run as well.
ROBERTS: Perhaps a promising area of research.
GUPTA: Yes. I think it's real important. It's been so hard to figure out exactly what to do. If people have these vague symptoms in the long run, this might help.
ROBERTS: Great. Well, Sanjay, thanks very much for that.
GUPTA: Thanks, John,
ROBERTS: We'll get you back because you got your mailbag coming up, too, this morning.
GUPTA: Of course, thanks.
ROBERTS: We've got some great questions this morning as well -- Kiran.
CHETRY: Thanks, guys.
Well, still ahead, the IRS issuing a new warning. It's to watch out for tax rebate and tax return scams. We're going to tell you how to make sure your personal information stays safe.
Also, Governor Arnold Schwarzenegger expected to endorse Senator John McCain today. We caught up with Schwarzenegger last night. John talked to him, and he was disappointed with the way the event turned out.
(BEGIN VIDEO CLIP)
GOV. ARNOLD SCHWARZENEGGER (R), CALIFORNIA: This debate here today, you know, especially at the Reagan Library, I think was a shame that there was a lot of wasted opportunities because I think that --
(END VIDEO CLIP)
CHETRY: We're going to find out more about what the governor was talking about, and what he says he wanted to hear from the candidates ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
CHETRY: Now, leave it to Britney Spears to steal the spotlight from Barack Obama and Hillary Clinton in southern California. The troubled singer taken to the hospital in the early hours of the morning. According to the "L.A. Times," police were called to her home a little bit before 1:00 Pacific time, and that Spears was then taken to the UCLA Medical Center where she's reportedly being held on a 72-hour mental health evaluation.
That's where Kareen Wynter is for us this morning with new details. Did you find anything else about exactly why they were called to her home and who called them?
KAREEN WYNTER, CNN CORRESPONDENT: Hi there, Kiran, good morning to you. Here we go again, right? Britney Spears back into the hospital. We've been down this road before. What we're hearing from law enforcement officials is that this was something that was actually in the works for the better part of the day yesterday. That this was reportedly an intervention here and staged by none other than her psychiatrist. That things had gotten so bad with Britney Spears that they just had to intervene to get her the help that she needs. And again, it's been reported by the "L.A. Times."
We have not been able to directly confirm with hospital sources because of HIPAA laws. They're very protective, especially of celebrities but it's believed this is where she is at this hour. A similar scene earlier in the month, January 3rd in fact, when police, just like this time, they responded to her home. This time it was over a custody dispute back on January 3rd. Spears reportedly refused to hand over her two sons to Kevin Federline. As we all know, she's in a heated dispute, a custody battle with him.
The children were not involved this time around, Kiran, because the judge yanked all visitation rights. And at that time, it was very, very limited in scope. But because she's violated so many custody orders, the kids weren't with her. So it's unclear how long she'll be in the hospital this time around. Last time, she only lasted a day and a half, Kiran.
CHETRY: That's right. All right. We'll see what happens this time. Kareen Wynter, thank you.
ROBERTS: California Governor Arnold Schwarzenegger is expected to take center stage today when he endorses John McCain for president. But last night, he was just a spectator and he seemed to have a few issues with the issues at the debate. I caught up with the governor after the debate wrapped up last night.
(BEGIN VIDEOTAPE)
GOV. ARNOLD SCHWARZENEGGER (R), CALIFORNIA: I think that Senator McCain has done a great job and, of course, Governor Huckabee did a great job especially finishing off. So it was good to see that. So we will see.
ROBERTS (on camera): You have said that universal health care is one of your prime goals here for the state of California. Do any of the candidates that appeared here tonight on this stage have a plan that you can endorse?
SCHWARZENEGGER: Well, sorry to say that there were a lot of things in this hour and a half that were not discussed. There were a lot of things they were talking about, who said what when. It was like a court hearing rather than a debate over issues to move the country forward. And I'm sorry to say that those debates, they were lacking a lot of that. I have no idea what plan is -- any of the candidates' plan is on infrastructure. I know only because I know some of the history of these candidates, but none really talked about it.
None of them talked about health care and health care reform. Any of those issues didn't come up. How are we going to improve our reputation overseas again, and get back the strength that we once had. And, you know, they squabbled about a lot of it, you know, you said this you didn't say that. So I thought that was disappointing.
ROBERTS: Do any of these candidates have plans on what you talked about -- infrastructure, health care, also the environment which is incredibly important to you that you can endorse?
SCHWARZENEGGER: They do. But, I mean, I'm just saying the debate itself...
ROBERTS: Yes.
SCHWARZENEGGER: This debate here today, you know, especially at the Reagan Library, I think was a shame that there was a lot of wasted opportunities because I think that they ought to talk -- Reagan was a visionary. What is their vision and how to fix the health care system? No one today -- the question didn't come up either. It's not like I'm blaming the candidates. It's just the question didn't come up. What is the vision of how to fix the health care system? What is their vision on really how to deal with Iraq? What is their vision how to build and rebuild America and build a new infrastructure that is the new challenge and invest in the future of America?
All those kind of things and environmental issues. How do we fix and fight global warming? All those things were not really addressed. But like I said, the candidates were not given the opportunity because the questions were not there.
(END VIDEOTAPE)
ROBERTS: Schwarzenegger is expected to formally announce his endorsement of John McCain at an event later on today in California. That brings us to this morning's "Quick Vote" question.
We know endorsements can help, but what about suspending a run for office? Who will benefit more from John Edwards' departure from the presidential race? Right now, 47 percent of you say Hillary Clinton, 53 percent say Barack Obama. Cast your vote at CNN.com/am. We'll continue to update your votes throughout the morning.
So, Kiran, it looks like the votes may split just about evenly between the two candidates now that John Edwards is out of the race.
CHETRY: That's right. Depends on how you look at it. Also, interesting comments from Governor Arnold Schwarzenegger. I'm not sure if he was... ROBERTS: Oh, yes.
CHETRY: ... you know, critical of the format, the questions, or the candidates themselves. But it's interesting as we look ahead to a possible endorsement that are going to possibly come from the governor today.
ROBERTS: I think he was critical sort of everything last night. He got something to say, I think, on all fronts there.
CHETRY: You always know where he stands, though, don't you? Well, he doesn't mince words.
It's tax time and the accountants apparently are not the only ones working overtime. Apparently, so are the identity thieves. And there is a new warning coming from the IRS ahead.
Also, are you a spender or a saver? Maybe a little bit of both. What the latest interest rate cut means for your finances. Gerri Willis is going to be here to break it down ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
CHETRY: Well, it's tax time and the government says that means you're at a greater risk than ever to have your identity stolen. The IRS issuing a new warning about several new e-mail and telephone scams using its name to lure victims. Our Veronica De La Cruz has been looking at this. She's here with some tips on how to make sure you keep your personal information safe.
VERONICA DE LA CRUZ, CNN CORRESPONDENT: Yes. Very very important, especially this time of year. You know, those rebate checks also, part of the economic stimulus package, just one more way that identity thieves are trying to steal your money. And apparently, they're making phone calls posing as IRS employees and asking for your bank account information to deposit your check. Without it, they say that you won't get a rebate, which obviously is not true.
There are lots of red flags there. The biggest one by far is that the stimulus package hasn't even been signed into law yet. Also, you don't have to use direct deposit to get an IRS refund or tax rebate. You probably know by now those checks can also be mailed out to you. And beware of official e-mails like this one right here. Ending up in your e-mail inbox, you see the IRS logo, maybe a subject line that will read tax notification or 2007 fiscal activity tax refund.
Victims are often asked to fill out an attached document that contains spyware, Kiran, and that is what steals your personal information. Other times, it asks you to click on a link that will take you to a fake but very official looking Web site, asking you to plug in your information. Again, Kiran, these are all red flag. The IRS has most of your information already. It never sends unsolicited tax account related e-mails. And also, they never ask for personal and financial information online. If you do have concerns, if you received any of these suspicious e-mails, you can always e-mail spam@uce.gov. You can also call that number right there on the screen. Taxpayers Advocates. That number is 877-777-4778. We'll keep all this information online for you as well at our own Web site, CNN.com/Americanmorning.
And something else that you can do. Really simple. Do you own a shredder?
(CROSSTALK)
CHETRY: Yes, but I don't use it as often. But, yes.
DE LA CRUZ: You probably don't use at all, do you?
CHETRY: Well, it's loud.
DE LA CRUZ: So shred all your information.
CHETRY: Right.
DE LA CRUZ: Because, you know, those people, they also dig through your trash, unfortunately.
CHETRY: Exactly.
DE LA CRUZ: So --
CHETRY: So the bottom line is, do not ever -- you don't ever need to fill anything out and give it to the IRS online.
DE LA CRUZ: Yes. And the other thing you do as well. If you're going to irs.gov, you know, go back and type https, if it redirects you the IRS Web site, then you know that that is a secure Web site. Any Web site that is redirected to that Web site, https. That means it's secure.
CHETRY: Very interesting. All right. Veronica, thank you, of course -- John.
ROBERTS: Communication chaos. Dubai in the dark today after major Internet and phone outages. Now, everything from financial transactions to travelers at the airport are worried about what will happen next. We'll have that story coming up.
And the Republicans and health care. How do the GOP candidates plan to fix America's health care system? You heard Governor Schwarzenegger say he didn't hear much about it. Sanjay Gupta is up next. We'll look at what their ideas could mean for you. Got all the angles for you this morning ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
JOHN ROBERTS, CNN, ANCHOR: Mark doing a victory dance here this morning because he found out that the weather is nice and sunny today, with a high probably what, in the mid 60s? That's what it was yesterday, 63. Right now, it's the low 40s. What was the temperature yesterday, Mark? 45 degrees right now. We're outside the Kodak Theater here in Los Angeles. Welcome back to AMERICAN MORNING. It's Thursday, the 31st of January, a special edition of AMERICAN MORNING. Good morning to you, Kiran.
KIRAN CHETRY, CNN, ANCHOR: I have to laugh, you're outside the Kodak Theater. You're in Hollywood and you still have to wear gloves. You know, in the morning.
ROBERTS: Can you believe it? It will warm up in time for the "Situation Room" with Wolf Blitzer later on today. He always gets the warm weather.
CHETRY: Exactly. What are you going to do? It's the time slot.
Well, he's a star on the big screen and also of course in the republican party. Arnold Schwarzenegger joining team McCain. CNN has learned that Governor Schwarzenegger of California will lend his support to Senator John McCain and he's going to be making that announcement later today when he visits the solar energy facility. Georgia's two republican senators are also expected to endorse McCain. John.
ROBERTS: Tonight, it's the democrats' turn to debate. That is here in Hollywood at the Kodak Theatre. Barack Obama and Hillary Clinton head to head in their last stand before super Tuesday. Our coverage begins tonight 8:00 p.m. Eastern, 5:00 Pacific on CNN. Of course, all throughout the day, we're going to have a run-up prior to our debate coverage.
Meantime, last night's republican debate featured a series of back and forth jabs. John McCain and Mitt Romney attacked each other over their conservative credentials. When they stopped their verbal sparring, all four candidates focused on the economy.
(BEGIN VIDEO CLIP)
MITT ROMNEY (R), PRESIDENTIAL CANDIDATE: We need to get money in the hands of consumers, and businesses and homeowners now.
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: I think we have to return to the principle that you don't lend money to people that can't pay it back.
MIKE HUCKABEE (R), PRESIDENTIAL CANDIDATE: If you really want an economic stimulus package, look at what infrastructure investment does.
REP. RON PAUL (R), PRESIDENTIAL CANDIDATE: Where will you get the money to build the highway? Same old thing. You know, we have a foreign policy where we blow up bridges overseas and then we tax the people to go over and rebuild the bridges overseas.
(END VIDEO CLIP)
ROBERTS: All the candidates said they support the stimulus package that's currently moving through Congress. I had a chance to catch up with Senator McCain after the debate and I asked him about the swipes that he took on Mitt Romney and the expectation that Governor Schwarzenegger will endorse him later today.
(BEGIN VIDEOTAPE)
ROBERTS: You went at Governor Romney pretty hard tonight. Why did you feel the need to do that this evening?
MCCAIN: Well, it was really responding, I think, to a critical issue of our times, whether we withdraw from Iraq and whether we set a timetable or not and I think that it was very spirited conversation about that. That's what people need to see.
ROBERTS: He insists that he was not talking about a hard and fast timetable for withdrawal that would be public. He said that matter should be kept private between the leaders. He accused you of dirty tricks.
MCCAIN: Privateconversations about withdrawal, how do you do that? The point of the matter is, timetables of those days were the critical issue. The democrats and some republicans want to have full timetables. That wasn't best for America. I said the answer should have been, no, we're going to have a troop increase and we're going to do whatever is necessary.
ROBERTS: Governor Schwarzenegger is expected to give you his endorsement tomorrow.
MCCAIN: I hope so.
ROBERTS: He's standing right behind you, what would that mean to you?
MCCAIN: That would be a big boost if he does that. Thank you.
ROBERTS: Thank you, Senator.
(END VIDEOTAPE)
ROBERTS: Well, again that endorsement from Arnold Schwarzenegger expected to happen later on today when the two of them visit a solar energy plant her in California. Kiran.
CHETRY: That's right. New this morning. There could be a showdown today over the economic stimulus plan. The Senate Finance Committee adding on provisions that would make its bill hard to refuse, including offering rebate checks for 20 million low-income senior citizens. The Senate version would also shrink the House's rebate from $600 to $500 for individuals and from $1,200 to $1,000 per couple but it would include more people. The House and the White House are urging the Senate to pass the package that's already been approved by the House.
All right. So, for more about this and really when you're going to see it and also what does the Federal Reserve rate cut mean to you? By the way, the Fed cut has happened yesterday, and it's another half point. Now, to the lowest level we've seen in three years that comes on the heels of another three-quarter point rate cut last week. CNN's personal finance editor Gerri Willis joins us on what you need to know about all of this. First of all, to the economic stimulus plans so they're still going back and forth. One thing that all economists agree on, it has to happen soon for it to have an effect.
GERRI WILLIS, CNN, PERSONAL FINANCE EDITOR: That's right and you know what's interesting about that? There are other benefits to and with this plan that you probably want to know about. We'll be reporting about that later in this show, including some benefits for people with jumbo mortgages. And we'll be talking about that. With the Fed rate cut, you know, you brought it up, 50 basis points yesterday. It's hard to keep up with it, with the many rate cuts that we're getting in here and in fact we could be in line for even more.
CHETRY: Does it mean you should be making some changes to what you're doing financially?
WILLIS: Well, here's what I'm worried about. I know people out there are getting really conservative with their investments, because they can what's going on in the marketplace with stocks. They are worried that they're not going, that something is going to happen to their job. Yes, you do need savings, but you have to be careful here. This is why. Look, the inflation rate is at about 2.7%. Interest rates are getting cut so much that if you're putting your money into typical savings account, you could be losing ground because inflation is so high.
Let's take a look at some of those numbers for accounts out there. If you're investing in, say a one year cd or making 3.53%. But a lot of people are suing just regular checking accounts at their bank, 2.03. You are now below the rate of inflation. You're losing money on your money if that's where you're stocking your money away.
CHETRY: So, even though we've been covering some of the volatility in the market, you still think going in, when there's bargains to be had is the better deal rate?
WILLIS: Well, you know, my suggestion is that you invest all the time over time in a regular way so that you take advantage of what's going on right now, which is stocks had been going lower. So, you know, you got to take your opportunities where you have them. You can't afford to ignore the fact that stocks are on sale. They are cheaper right now, and you may want to pick some up. But if you want that savings account, you want to shop around for the best rate. One great place to go to is bankrate.com. You can see actually what banks in your area are paying.
CHETRY: All right. So that's for some money you may need short term emergency funds.
WILLIS: That's right.
CHETRY: You may want to keep that in savings but you should be smart about it because you can find better rates of return. WILLIS: That's right. You really want to think about what is the investment account I want. Is it a high yield savings account? You may find great returns online. Bankrate again will tell you what accounts have the best payout in your area. Because, let me tell you, it differs from bank to bank.
CHETRY: All right. Sounds good. Thanks so much, Gerri. We'll be talking about those jumbo mortgages coming up a little later.
WILLIS: Thank you.
CHETRY: John.
ROBERTS: Coming up on 20 minutes to the top of the hour now, Kiran.
Chaos in Dubai this morning. One of the most technologically advanced countries in the world is at a communication standstill. Two underground data cables were somehow damaged, knocking out Internet and phone service, even ground operations at the Dubai International Airport. They are not sure when full-service will be restored there.
Taking sides over new rules at the border, will they stop a terrorist or just make it harder for everyone to travel? We'll have a live report from the border ahead on AMERICAN MORNING.
And one thing we didn't hear much about in last night's GOP debate. Health care, Mitt Romney mentioned it, the governor wanted to hear more about it, what do the republican health plans really look like? We're paging Dr. Sanjay Gupta. Good morning, Sanjay.
DR. SANJAY GUPTA, CNN, CHIEF MEDICAL CORRESPONDENT: Good morning. We've been looking a lot at this as you might imagine, we got a special coming out tonight. In sort of a nutshell, there is a fundamental difference between the democratic plans and the republican plans.
The democratic plans sort of, well they're not socialized medicine. They do talk about expanding government run health care. They do talk about increasing Medic-Aid for the poor and expanding employer-based health care. Republicans really focus on this idea of sort of stimulating competition among the insurance companies to use the best aspects of free market to try and get health care for everyone. So, that's sort of the fundamental difference between the democrats and republicans.
ROBERTS: Right, we were actually supposed to be teasing to commercial but we can continue here this morning. So, you know, we talked about these plans and the one that Mitt Romney had in Massachusetts. Does that come the closest to what Governor Schwarzenegger is trying to do here in the state of California, which is some form of universal health care?
GUPTA: I think so. Basically what that plan said is look, everyone needs to buy health care. If you can afford it, buy it. If you can't afford it, we'll help subsidize it. That's sort of it in just the same thing as we were talking about earlier, it's called ABX 1. That was the proposal name here in California did not pass. In part, I think, because they looked at Massachusetts and said, how's it going over there? How's it working out? The truth is more people are covered than before but they also have $400 million worth of cost that they didn't expect. So, it is expensive. I don't think that's anybody's surprise here. But keep in mind, John, interesting, you have two republican governors trying sort of trying to get state level health care for everybody in their state and it is very expensive. And they'll say, look, that sort of points to this idea that this needs to be done more on a more national level.
ROBERTS: You brought to light an issue yesterday, which is very important looking when you're looking at health coverage, that catastrophic area, that couple that went broke because of their young daughter needed to have so many surgeries. So what about the issues of catastrophic care? What about the issue of portability? So that when you change jobs, you are able to take health care from place to place?
GUPTA: Yes, portability is something that the republican candidates have talked about but they have not guaranteed. They have not specifically guaranteed it. So, we looked at these plans pretty carefully. They say, look, it's a real concern but we can't guarantee that. John McCain does talk about tax credits for preexisting conditions which sort of fits into that a bit as well as with catastrophic care. Again, addressed but not specific plans to say, look, if you are faced with incredible out-of-pocket expenses so much so that it will bankrupt you, as the number one cause of bankruptcy, you can't guarantee that won't happen but some specific consensus in place.
ROBERTS: So, here's the bottom line, do any of these candidates, should they become president, have a hope of getting this through Congress?
GUPTA: Well, you know, if we look at the state, it's been difficult as we see here in California, to get a universal health plan through. But I think, they'll point to the national level and say the only way that is going to happen is if it happens at the national level. No one is talking about socialized medicine either on the democratic or the republican side, saying that this should be run by the government. And no one is even talking about a single-payer system, saying one insurance company for everybody. What they are saying is let's get everyone covered through the existing system and expanding it.
ROBERTS: Well, a tremendously important issue. I'm sure we'll probably hear more about this on the general election campaign but perhaps more than we've heard during the primary.
GUPTA: Absolutely.
(CROSSTALK)
ROBERTS: Sanjay, thanks very much. Your segment has been canceled now. So that's all over.
Join Sanjay for his "Broken Government Special: Healthcare Critical Condition" tonight, 11:00 p.m. Eastern, right after the presidential debate. Kiran.
CHETRY: Thanks, John. Still ahead, new rules at the border, not everyone is on board.
(BEGIN VIDEO CLIP)
REP. PETER WELCH (D), VERMONT: It's a terrible idea. It's a job killer plain and simple.
UNIDENTIFIED MALE: I think there's a degree of confusion. It's not just that they don't have documents, people just don't know which documents are required.
CHETRY: So, will they stop a terrorist or tie you up? A live report from the border ahead on AMERICAN MORNING.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
CHETRY: Turning now to our security watch and government's crackdown along the U.S.-Canadian border, there are new rules that go in effect today that require various forms of identification in order to enter the U.S.. Up until now, you could just say that you were a citizen. Now, you have to prove it. Homeland Security correspondent Jeanne Meserve is live at the border. She's in Derbyline, Vermont. Jeanne, explain for us what these new rules mean for travelers?
JEANNE MESERVE, CNN, HOMELAND SECURITY CORRESPONDENT: Well, Kiran, it used to be, you could come to a crossing like this and just say you were an American or Canadian citizen, and they'd let you right into the country. But, as of today, you have to present a proof of citizenship like a birth certificate and also government-issued photo I.D. like a license. And not everybody is happy about it.
(BEGIN VIDEOTAPE)
MESERVE (voice-over): With snow like this, it looks to be a banner year for J. Peak, a ski area in northern Vermont but that could change.
UNIDENTIFIED MALE: About half of our skiers come from Canada.
MESERVE: J. Peak cultivates its Canadian clientele, accepting Canadian currency, advertising heavily north of the border. But there is worry that Canadians will stop coming if new document requirements cause backups at border crossings.
UNIDENTIFIED MALE: How many times do you go through that and say, well, I'm not going back.
MESERVE: And they have options? UNIDENTIFIED MALE: They have lots of options.
MESERVE: There are plenty of ski slopes north of the border. One Canadian family predicts the new rules will hurt north-south travel by Canadians and Americans.
CHRIS BIBER, CANADIAN TOURIST: I think there's a degree of confusion, it's not just that they don't have documents, people just don't know which documents are required.
MESERVE: to bring.
BIBER: And so some people will just say, I couldn't care less, I will just stay home and don't travel.
MESERVE: With 7 million U.S. jobs in tourism and industry dependent on the U.S.-Canadian trade, the new rules are setting up alarms from Maine to Washington state.
REP. PETER WELCH (D), VERMONT: It's a terrible idea. It's a job killer, plain and simple.
MESERVE: In the name of security, Canadians and Americans not carrying passports will need to show proof of citizenship like a birth certificate and a government-issued photo I.D. such as a license. It Begins Thursday despite pleas from border state congressman for a delay.
MICHAEL CHERTOFF, HOMELAND SECURITY SECRETARY: When you delay things indefinitely and keep putting them off, the real message to the public is that you're not serious about ever making a change.
MESERVE: Some Canadians like Leo and Grace Mairinger) say the changes make sense.
LEO MAIRINGER, CANADIAN TOURIST: It's crossing an international border.
GRACE MAIRINGER: They don't know who's coming in their country, of course they want proper papers.
(END VIDEOTAPE)
MESERVE: There are thousands of different kinds of birth certificates that could be stolen. They could be counterfeit, leaving some critics to say, is this going to improve security at all? After all, that was exactly the point. Back to you, Kiran.
CHETRY: What about enforcement? How difficult is it going to be to actually make sure that this happens?
MESERVE: Well, customs and border protection right now is giving tear sheet to people as they come through, telling them about the new rules. They're not actually looking at the new documents in most cases, so they're saying at least for the time being they aren't predicting any backups, any delay at the border. But we'll see. Kiran.
CHETRY: We'll see for sure. All right. Jeanne Meserve in Vermont this morning. Thanks. John.
ROBERTS: Coming up on 10 minutes to the top of the hour now, Kiran, democratic showdown tonight, head to head, Hillary Clinton and Barack Obama, one of the hottest tickets in town, find out which issues could spark the fireworks. The Kodak Theater where the debate is, is also where the Academy Awards are being held, what will the Oscars look like if the writer's strike drags on, what the academy is planning, just in case, just ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
CHETRY: Actor George Clooney headed to United Nations today. He's going to be honored as a messenger of peace. And this afternoon, we're actually going to one talking with Clooney about his new role, his recent tour of Darfur, Chad and the Congo. And also what he thinks about the writers' strike and maybe he will answer some questions about his take on the race for president. We'll be showing you our conversation tomorrow on AMERICAN MORNING.
Still ahead, the Academy Awards have a back up plan if the writers' strike is still on. The show is due to air on February 24th, and will show some film clips, some history and some other ideas that don't require writers. The president of the Academy says they're planning on two shows, the show we would love to do and the show we would prefer not to do. Even if the strike is not settled, the Oscars could get a waiver from the writers' guild. The writers' guild recently gave the Grammys as well as the S.A.G. awards waivers to go on as planned. John.
ROBERTS: Hillary Clinton and Barack Obama will now battle it out head to head tonight in the Kodak Theater where they're holding the Oscars but at tonight's debate, John Edwards is bowing out, announcing it Wednesday in New Orleans. Edwards is not endorsing Clinton or Obama but says both candidates have pledged to make his anti-poverty message part of their campaigns
And that brings us to things morning's "Quick Vote" question. Who will benefit more from John Edwards' departure from the democratic presidential race. Right now 51% of you say Hillary Clinton will and 49% say Barack Obama. Cast your vote at cnn.com/am. We'll update your votes throughout the morning to bring you a final tally just before 9:00 Eastern.
Detroit Mayor Kwame Kilpatrick will be back at work this morning. He emerged last night a week of seclusion following a text messaging scandal. With his wife at his side, Kilpatrick issued a public apology. Prosecutors are looking at the messages that he exchanged with his chief of staff that suggested they were having an affair. Kilpatrick spoke out live on local television.
(BEGIN VIDEO CLIP)
KWAME KILPATRICK, DETROIT MAYOR: I felt more emotion in the last week than I have in the past 20 years. I've been truly hurting. I've been hurting because I know that many of you are hurting. And most of all, I've been hurting because I know my family is hurting and I'm responsible for that.
(END VIDEO CLIP)
ROBERTS: Kilpatrick didn't specify what he was apologizing for. The text messages seemed to contradict sworn testimony from a lawsuit in which the mayor and his chief of staff denied having a physical relationship. The mayor has vowed that he is going to stay in office. Kiran.
CHETRY: All right. And you're watching the most news in the morning. The Senate and the House headed for a showdown over the economic stimulus package. And tucked inside, a possible treat for homeowners. Our Gerri Willis has a look coming up in our next half hour.
Also, Mitt Romney saying that John McCain is wrong on a lot of stuff. He didn't hide that last night. He says he's not the only one.
(BEGIN VIDEO CLIP)
GOV. ARNOLD SCHWARZENEGGER, CALIFORNIA: Today, you know, especially at the Reagan Library, I think it was a shame that there was a lot of wasted opportunities because I think...
(END VIDEO CLIP)
CHETRY: We're going to talk more about that coming up on AMERICAN MORNING.
(COMMERCIAL BREAK)
(BEGIN VIDEOTAPE)
CHETRY: Showdown.
MCCAIN: Timetable is the buzzword for withdrawal.
CHETRY: Republicans debate. Dirty tricks. Iraq and your money.
RON PAUL (R), PRESIDENTIAL CANDIDATE: We're not better off.
CHETRY: Plus, Arnold weighs in. Who gets his vote?
Hollywood's toughest ticket. Clinton-Obama. Head-to-head in their last debate before super Tuesday. The most politics in the morning.
Plus - breaking news. Britney Spears heading to the hospital overnight. More drama at her house on this AMERICAN MORNING.
(END VIDEOTAPE) CHETRY: We'll have details on that in just a moment. It's Thursday, January 31st. A special edition of AMERICAN MORNING. I'm Kiran Chetry here in New York. Hey, John.
ROBERTS: Good morning to you. I'm John Roberts. We're outside the Kodak Theater in Hollywood, California. The Oscars are coming up here on February 24th. But there is plenty of anticipation today about the democrats main event, Clinton versus Obama tonight.
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