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Lumberyard Fire in Salisbury, North Carolina; Blast of Bad Weather in the Southeast; Popular Student Body President Gunned Down

Aired March 07, 2008 - 10:00   ET

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


TONY HARRIS, CNN, ANCHOR: We'll follow this story with you. This is a hot topic and we really need to spend some time on it and we will be doing that throughout the morning here on the CNN NEWSROOM. Rick Sanchez from the Dominican Republic for us. We appreciate it. Thank you.
And good morning, everyone. I'm Tony Harris. Heidi is off today. You'll stay informed, all day in the CNN NEWSROOM. Here's what's on the rundown. Severe weather happening right now in Florida. Reports of tornadoes, homes damaged and power outages in the Tallahassee area.

The U.S. trying to extradite this man today. An accused international arms dealer, the notorious "Merchant of Death."

Different campuses, different states. Two young college women were found dead. Police chasing leads today, Friday, March 7th. You are in the CNN NEWSROOM.

And happening right now, tornado warnings in effect in northern Florida and southern Georgia. Let's get straight to Bonnie Schneider in the severe weather center for us. And Bonnie, if you would, give us a reset.

BONNIE SCHNEIDER, CNN, METEOROLOGIST: That's right. We are watching three tornado warnings, excuse me across northern Florida and now we have some posted across parts of the Georgia. As we zoom into the region, we can show you that we do have a tornado warning for areas into southern Georgia and if we clear this now you'll see that includes Brantley, Camden, Charlton, Glynn, Pierce and Ware and Wayne counties. It seems like a lot of counties but as you can see by this map, some of the counties are just sort of getting clipped in the warning area.

Now, down in Florida, if we head southward, we also have tornado warnings in that region as well. As we query these we can show you that some of the tornado warnings are about to expire. We'll zoom into two of them now. Baker, Bradford, Columbia and Union county and that will expire at 10:30. We are also watching another tornado warning. In advance of that and this one will continue until 10:15. So, we're watching for these warnings to continue because of the severe weather on a wider scale, the tornado watch extends all of the way into the noon hour. And that includes all the way up areas towards southern sections of Georgia. Actually, not where the warning is but the watch continues until 12:00 p.m. but it's so close to where the warning is that that's why it's unfortunately getting some of that severe weather. You can see the area in pink here, this is the Georgia tornado warning that is still in effect.

All right. As we take a look at this wider picture, you can see this constant stream of moisture from the Gulf of Mexico. Not, only are we getting, of course reports of damaging wind in some of the areas in around Tallahassee down at Keaton Beach, right along the Gulf Coast but we're also getting very heavy rain. Some reports of pounding on some of the smaller roads. So, just be careful driving. It's tough to see when you're getting water on the roadways. Severe weather in advance of this cold front. Then on the back side, we have snow. The snow is falling as far south as Texas. So, a very large-scale weather system that's affecting so many parts of the country. We're getting reports of over two-hour delays in some of the flights already trying to leave different cities. Because some of the planes are coming from this area, you're going to be delayed. So, it's going to be a rough Friday.

HARRIS: Yes, it sounds like it. OK, Bonnie. We'll be checking back with you shortly. And of course, when weather becomes the news, as is the case today, remember to send us your i-Reports if you can safely. Go to cnn.com and click on i-Report or type i-Report on CNN.com into your cell phone. Again, stay safe.

Several new twists and turns this morning in the Times Square bombing investigation in New York City. Authorities are taking a closer look at surveillance video. They're searching for a hooded bicyclist seen just before the blast at a military recruiting station. And this development, just moments ago, authorities are now saying that an incident last month at the U.S.-Canadian border in New York is not linked, is not linked to the bombing. Also this morning, they said there appears to be no connection between the bombing and letters sent to members of Congress. They included photos of the recruiting center. Anti-war letters received by lawmakers and the timing of the explosion in Times Square, again, officials calling it a strange coincidence. Kate Bolduan is tracking developments. She is live for us from Capitol Hill. Kate, good morning.

KATE BOLDUAN, CNN, CORRESPONDENT: Good morning, Tony. Well, it is a little confusing because it is a bizarre coincidence as law enforcement sources tell us. They say there is no connection between the letters sent to Congress and the New York City bombing. As many as ten letters arrived at Democratic congressional offices yesterday. And in those letters there was a picture that -- a picture was included of the "New York Times" -- pardon me -- the Times Square military recruiting station and a statement "We did it." While this morning, just this morning, New York City police commissioner Ray Kelly he described. He pretty much clarified the meaning of that statement. Listen to this.

(BEGIN VIDEO CLIP)

RAY KELLY, N.Y.P.D. COMMISSIONER: The letters, really innocuous. It's really advised to the Democratic party is how to win the 2008 election. It's a type of information that pundits put out all the time on television. There's nothing particularly threatening in the document. In the document, he claims that this was his holiday card that he sent out in 2006. We did it meaning that the Democrats took over Congress in 2006. So I think the FBI has come to the conclusion that this individual is not involved.

CHETRY: Not involved. OK.

(END VIDEO CLIP)

BOLDUAN: So after looking into it a little further, investigators say there is no connection there. So basically, they say that this investigation is closed. I do want to turn to the new developments a little north to us at the New York state-U.S.-Canadian border. A senior government official now clarified to CNN that what happened there is that it seems like three people in a car was stopped as they were going from New York entering into Canada. During a routine search of the car, a backpack was turned up. And what was inside that backpack is getting a lot of attention. The police commissioner from New York, he told us a little bit more about that as well. Take a listen.

(BEGIN VIDEO CLIP)

KELLY: Some pictures of Times Square including the recruiting station were found. Our liaison officer in Montreal was notified. Our (nexus) team, these are teams of detectives who go around and talk to businesses did go out and speak to the people in the recruiting station and told them about the fact that these pictures were found. So federal officials are going back to take another look and attempt to speak to Canadian officials about that stop.

(END VIDEO CLIP)

BOLDUAN: At the time the senior government official says the Canadian and the N.Y.P.D., those officials say determined that there wasn't a threat related to that incident. Clearly they wanted to take a second look with these recent developments. But they do stress that at this time there's still no conclusive evidence that links the incident at the border with the New York City incident. Tony.

HARRIS: OK. Kate Bolduan for us on Capitol Hill. Kate, good to see you. Thanks.

BOLDUAN: Thank you.

HARRIS: The nation's sputtering economy, you may feel the pain every time you reach for your wallet. This morning a whole bunch of gloomy news. The latest blow came this morning. New payroll report showed 63,000 jobs disappeared last month. That's the second month in a row of job losses and adds to recession anxiety and we will see how the concerns play out on Wall Street today. A quick look now. Markets opened about a half hour ago. As you can see, the Dow down 35 points. Boy, that's a bounce back off of session lows. The Dow plunged triple digits in the first few minutes and dipped for a period there below the 12,000 mark before rebounding a bit. Again, all session lows. The Dow down 36 points. Overnight, Asia markets tumbled at least 2 percent. Much of the reason for the troubled economy. The housing crisis and new signs it is getting even worse. Foreclosures hit an all-time high last quarter. And for the first time since record-keeping began in 1945, American homeowners are now saddled with more debt than equity. House poor. Do you know what that means? It means you owe more than your home is worth. CNN's Christine Romans at this troubling trend.

(BEGIN VIDEOTAPE)

CHRISTINE ROMANS, CNN, CORRESPONDENT (voice-over): Americans own less of their homes than ever before. Not even half of the house is paid for. It's the latest sign of declining middle class wealth since the home is most Americans' largest asset.

DEAN BAKER, CENTER FOR ECONOMIC POLICY: A lot of people are in really bad trouble right now.

ROMANS: He's referring to new data from the federal reserve that show for the first time Americans' debt on their home exceeds their equity. What we actually own has tumbled over the past four years, from almost 54 percent to less than 48 percent by the end of last year.

BAKER: That's not that big of deal maybe if we're talking about a family in their 20s, early 30s. But we know we have the huge baby boom caught hard at the edge of retirement. They for the most part don't have traditional defined benefit pensions, they don't have a lot of money in their 401(k)s. What they had is equity in their home and in many cases that just disappeared.

ROMANS: Some people use their homes as piggy banks for years, paying for cars, tuition, basic living expenses. Some use new kinds of mortgages that allow them to put so little money down they essentially own nothing. A disaster when home prices fall.

PROF. LAURA TYSON, UNIVERSITY OF CALIFORNIA BERKELEY: We're in a vicious downward spiral of declining home prices, increasing foreclosures causing increasing asset pressure in the financial institutions, the financial institutions cutting back on all sorts of credit. And that in turn leading to declining housing prices.

ROMANS: A record 900,000 homes are in foreclosure according to the Mortgage Banker's Association and more people are at least 30 days late with their mortgage payment. The highest rate since 1985.

(END VIDEOTAPE)

ROMANS: The Fed has cut interest rates aggressively and billions of dollars in stimulus is on the way. But some economists and congressional Democrats say it's simply not enough. The housing situation is worsening by the day. Christine Romans, CNN, New York.

HARRIS: OK. So we are going to go even deeper on the topic of your money. It is a CNN "financial security watch," a special hour- long look at what you need to know in this struggling economy. That's today, noon Eastern.

Wooing Wyoming, the state end the spotlight of tomorrow's Democratic caucuses. Hillary Clinton is there after starting her day in Mississippi. Barack Obama also on the campaign trail in Wyoming today. In a tight race where every delegate counts, they're both going after the 12 up for grabs in Wyoming tomorrow.

Still no winner in Tuesday's Democratic caucuses in Texas. As of yesterday, Obama was leading Clinton, 56 to 44 percent. But that's with less than half of the precincts reporting. Polling places were chaotic Tuesday with over-crowding and long lines. Republican nominee in waiting John McCain is on a southern swing. He is holding a town hall meeting in Atlanta this morning before heading to New Orleans. His last remaining rival, long shot Ron Paul hinting that he will officially end his White House run soon.

HARRIS: A so-called "merchant of death" is out of business. How a notorious Russian arms dealer got caught.

(COMMERCIAL BREAK)

HARRIS: Welcome back, everyone, to the CNN NEWSROOM. I'm Tony Harris. Michael, let's see that radar. A live look here, severe weather happening right now in Florida. Reports of tornadoes, homes damaged and power outages. We are tracking the storms with Bonnie Schneider in the severe weather center all morning long right here in the CNN NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: Twin bombings in Baghdad. 69 confirmed dead. 120 wounded. Back-to-back attacks in a bustling commercial district on Thursday. The first explosion, a roadside bomb hidden under a vendor's stall. Then came the second blast as people gathered to help the wounded. A suicide bomber detonating an explosive vest in the crowd. Today several bombings in the northern city of Mosul. The deadliest attack, a suicide bombing killed 5 and wounding 17 at a police station.

From an untouchable to the grasp of armed guards. We have been updating you on this story. It is absolutely fascinating. The man known as the "merchant of death" under arrest in Thailand. Suspected Russian arms dealer, Viktor Bout, was brought down by a deal that never was. We have already had reports from Thailand and the Dominican Republic this morning. Now to CNN's Barbara Starr. She is at the Pentagon.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN, PENTAGON CORRESPONDENT: Viktor Bout, one of the world's most notorious arms dealers who allegedly sold weapons used in civil wars from Africa to South America now in custody in Thailand facing extradition to the U.S.

MICHAEL GARCIA, U.S. ATTORNEY: Today's arrest mark the culmination of a long-term DEA undercover investigation that spanned the globe. And it marks the end of the rein of one of the world's most wanted arms traffickers.

STARR: In 2002, Bout told CNN he was just an honest businessman living openly in Moscow.

VIKTOR BOUT, ACCUSED ARMS DEALER: I'm not afraid. I don't do anything with my life for what I should be afraid.

I supply every army but the Salvation Army.

STARR: Nicolas Cage's performance in 2005 movie "Lord of War" is said to have been patterned on Bout's life. Law enforcement officials say Bout is a real war "merchant of death," long accused of supplying weapons used in Liberia, Rwanda and Sierra Leone where thousands were massacred in civil wars. Viktor Bout was finally snagged Thursday in one last's arms deal. U.S. officials say he thought he was selling arms to the FARC, the revolutionary armed forces of Colombia.

In reality, the U.S. Drug Enforcement Administration used confidential informant to get inside the Bout organization. Undercover operatives enticed Bout to Thailand to finalize the deal. The Treasury Department in 2005 mapped out Bout's worldwide network of air cargo shippers and front companies. In fact, U.S. officials say the Pentagon inadvertently paid Bout's cargo companies to bring arms into Iraq for Iraqi security services.

DAVID ISENBERG, SECURITY AFFAIRS ANALYST: The smart money seems to be that some of those arms originally from Bosnia have been diverted to some corner of the earth, probably into the hands of the people who shouldn't have them.

(END VIDEOTAPE)

HARRIS: And Barbara Starr joins us from her post at the Pentagon. Barbara, great too see you. What impact is this arrest likely to have on the world market for illegal arms?

STARR: Well, Viktor Bout, even U.S. military people say this is just one bad man. Putting him out of business is going to be significant. He caused misery on several continents, especially with his funding and shipping of arms into those terrible civil wars in Africa. So putting him out of business will make a significant dent. But you know, Tony, security services around the world already worried who might be out there ready to step in and fill these kinds of shoes. The question for intelligence services is, could anybody in a post-9/11 world really put together the network, the cargo shippers, the front companies, the operatives on several continents, the financing that Viktor Bout had for years and years, could it ever be done again. That's what intelligence services are worried about. Tony.

HARRIS: We hope the answer is no. Barbara Starr at the Pentagon for us. Barbara, appreciate it. Thank you.

Boy, the tornado warnings are happening as quickly as we can keep track of them. Bonnie Schneider with a wrap of new ones. Bonnie, good to see you.

BONNIE SCHNEIDER, CNN, METEOROLOGIST: Good to see you, Tony. Unfortunately we have more severe weather to report. And this time a tornado warning includes the city of Brunswick, Georgia. I mentioned that you can see them kind of spread as we go from west to east as the storm advances. This new one doesn't include areas including Brantley, Camden, Charlton, Glynn, McIntosh, and Wayne counties. It does go until 11:00. Further to the west, we have another tornado warning in Georgia. And this one also includes several counties and it goes until about 10:30 a.m.

As we take a look at areas to the south. I want to show you Florida because we have a couple of tornado warnings that continue. As we go from west to east, you'll see that we have a tornado warning about to expire, Baker, Bradford, Columbia, Union county. That's right, here. And then we're getting closer to Jacksonville. And if you're in Jacksonville right now, even though you're not under a tornado warning it is very likely one will be issued because you can see the storms as they advance further to the east, Jacksonville very close. At least the outer limits of the city under this tornado warning right now. And that goes until 11:00 in the morning. One last thing I just want to report is we're getting reports in Live Oak, Florida. According to the National Weather Service in Jacksonville that power is out in that city. We're also getting reports, Lake City, Florida, wide spread damage. This comes from the National Weather Service from Jacksonville, Florida. So, we're getting a lot of wind damage from these storms.

HARRIS: OK. Bonnie, checking back with you often. We'll be back in just a couple moments. Thank you.

And still to come in the NEWSROOM, many of you are wrestling with major money worries. You have questions. CNN's personal finance editor Gerri Willis has answers next for you in the NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: New pictures we want to show you just coming into the CNN NEWSROOM right now. We're going to take you to Salisbury, North Carolina. This about 40 miles -- Tom, what was that, north of Charlotte? About 40 miles north of Charlotte, North Carolina. Firefighters now on the scene of a five alarm fire there at a lumberyard. Maybe this is the understatement of the morning so far. Fire officials say they will be on the scene for a while. No reports of injuries at this time, but we will keep an eye on these pictures coming in to us from our affiliate there, WCNC. Again, this is Salisbury, North Carolina. About 40 miles north, just outside of Charlotte, North Carolina. The good news here, no injuries.

And let's take you to the New York Stock Exchange now and give you a look at the numbers. We're about an hour into the trading day. As you can see, a nice rebound for the Dow. The Dow was down over 100 points at the open. And right now the Dow is absolutely flat. We'll continue to watch these numbers with Stephanie Elam. Stephanie Elam is in for Susan Lisovicz in the CNN NEWSROOM.

Mortgages, missed payment and job loss, you have questions. CNN's personal finance editor Gerri Willis has answers. And she is here to answer your e-mail questions. Gerri, great to see you. A lot of great questions.

GERRI WILLIS, CNN, PERSONAL FINANCE EDITOR: Hey, Tony. Let's get right to them. HARRIS: You want to dive in. OK. Great. Leonard from New Jersey writes, my mother has a mortgage and her house is now in foreclosure. She has desperately, Gerri, been trying to save her home but the bank has failed to call back and provide her with any options as to what can be done to save our home and credit. Gerri, help.

WILLIS: Well, Leonard, you know, I hear this a lot. And what you need to know is that regulators out there have been trying to get lenders to work with struggling homeowners like your mother. So, what you want to do is get her to take notes when she talks to the bank. You need proof that the bank is being unresponsive. She should take notes on every call with a lender. Your next step, talk to a housing counselor. Here's the number for you - the U.S. Department of Housing and Urban Development, that is 800-569-4287. Look, there are housing counselors there that can tell you what your options are and help you work through the problem.

HARRIS: Boy, Gerri, how many people could sign their e-mails to you frustrated in Virginia? I mean, come on, these days.

WILLIS: I know.

HARRIS: Here's the question. I cosigned a loan for my sister who got a mobile home. I found out some years later that she missed several payments. She hasn't missed any payments recent but she does live on the edge by making the payments after the due date. Gerri, should my husband and I get a loan to pay it off and have her make the payments to us?

WILLIS: Well, you know, can I just say I know you want to help your family, but don't cosign loans. Look, when you cosign on a loan you essentially are equally liable for the payments and any missed payments. That means your credit will suffer each and every time your sister say misses a payment. Now, it would be in the best interest if your sister got a new loan, refinanced the loan with only her name on it. Now, this way, if she misses payments, it only damages her credit. You don't want to be your sister's banks. It creates more problems than it's worth. Look, if you really want to help, you can occasionally pay a payment for her but you don't have to have your name on the loan.

HARRIS: You know, we don't talk about credit in the rental sector much. We got a great question here from Michael. Michael is from Virginia who writes, "to what extent do apartments and landlords consider someone's credit when you apply for residence"?

WILLIS: Well, Michael, the answer is a lot. The law is generally on the tenant's side but landlords of property management companies definitely take your credit report seriously. Look, the bottom line here is if you have bad credit you may have to pay more for that apartment or you may not be able to live there at all. So, you definitely want to get your credit score higher. That's job number one.

HARRIS: Yes. Sounds like it for everyone. And Jeff from Ohio writes, "Gerri, I've lost my job that paid well. I'm starting a new one that will pay less but my bills will stay the same. I'm not sure I can afford my home. Is bankruptcy an option?"

WILLIS: Ouch. You know, with the unemployment numbers this morning, you saw this Tony, they show the biggest loss in five years. OK. You're not alone. But there are other options you should explore before filing for a bankruptcy because bankruptcy, let's face it, is a black mark on your credit report that can last for ten years. It may not always be the worst option but it should generally be your last option. Here's some other ideas. Go get foreclosure avoidance counseling. You can do this from a reputable consumer credit counseling agency, go to nfcc.org. It's a Web site, to find a local office. And you may be able to look into debt management plans.

Now, this isn't for your mortgage loan but it is for your credit card. If you can reduce the amount you pay on your credit card bills, then perhaps you can save your home. And the hardest one for most of us, aggressive self budgeting. Take a long hard look at what you spend each month. You will probably identify areas where you can actually cut back. All of these options, all of them are better than bankruptcy. They're going to save your credit score.

HARRIS: Well, that's great advice. Gerri, I want you to talk about the big special at noon today, the "Financial Security Watch" special, because more questions and more answers at noon Eastern.

WILLIS: That's right. You know, "Financial Security Watch" today at noon. We will be taking your questions, your phone calls, your e-mails. You can call 866-792-3399. I'll give that to you again if you have a pencil. 866-792-3399, you can e-mail us at sw@CNN.com. We will answer your questions about all your money problems, jobs, credit, you name it, we'll be there.

HARRIS: What a day to do this. OK, Gerri, great to see you. See you at noon Eastern time right here in the NEWSROOM.

WILLIS: You bet. Thanks, Tony.

HARRIS: OK. Thanks, Jerry. John McCain is in, can he simply wait and watch? Can the Democrats afford a long battle? We will talk to Republican and Democratic strategists next in the NEWSROOM.

(COMMERCIAL BREAK)

TONY HARRIS, CNN ANCHOR: And once again, we want to quickly update the situation on this lumberyard fire. This is in Salisbury, North Carolina. Again, about 40 miles just outside of Charlotte, North Carolina in Rowan County. This is a lumberyard on fire right now. South Martin Luther King Jr. Avenue to get really specific and pin it down if you know the area.

We understand the update here is that there are two injuries reported so far. Again, two injuries. And firefighters, of course, as you can see from the pictures here, are going to be on this scene working this fire for some time. We will continue to keep an eye on this story and update it with additional information as we get it right here in the NEWSROOM. Let's get an update on the storm system. What a system this is, Bonnie Schneider, that is moving through South Georgia, principally in Florida right now. Warnings and watches just popping up all over the place.

BONNIE SCHNEIDER, CNN METEOROLOGIST: Absolutely. And I have new information for you. We have a new tornado warning that expires 11:30 a.m. for several counties in South Georgia. And we also have one that includes the City of Brunswick that expires at 11:15. This just coming in also from National Weather Service in Jacksonville reporting that they had five public reports of tornado received by emergency management. Nine miles of Waynesville at Turkey Ridge. Damage reported to at least one home.

So these are the types of reports we're getting in from the National Weather Service In Jacksonville and also areas to the south. We had some in Tallahassee earlier this morning. Well, we're getting reports of the storm damage. I want to show you some other tornado warnings that we've been watching in and around the Florida area. We had some that were just in (INAUDIBLE) City of Jacksonville. I guess that one just expired probably about ten seconds ago.

But still under the gun is the entire region of North Florida. And with good reason. This tornado watch extends all the way until the noon hour. And as we take a look at Google Earth, we've been watching this area of Live Oak and Lake City because we're getting reports again from the National Weather Service that power is out for a good portion of this region. And we're also reporting major damage in and around Lake City.

Now, in terms of tornado touchdowns, nothing has been confirmed officially but we do have reports in the Capitola area just to the east of Tallahassee. Reports actually of two tornadoes. And then down in Keaton Beach, right along the Gulf Coast. We also have reports of a tornado that was spotted as a touchdown. Not a confirmation but the winds are consistent with it so far in terms of straight line winds and wind damage.

So we're watching this system in Florida and Georgia very closely, Tony. And still not out of the woods yet. We can see numerous tornado warnings still issued later this morning because of this powerful weather system.

HARRIS: Yes. Hey, Bonnie, hang in there. If you have a question for Harvey Campbell. He is the public information officer for Columbia County; the big city in Columbia County is Lake City. Just let me know if you have a question for him.

Harvey, good to talk to you. If you could, give us a sense of what is the scene there in Lake City and some of the surrounding areas in your county.

HARVEY CAMPBELL, COLUMBIA COUNTY, FLORIDA EMERGENCY MANAGEMENT: Well, we are located about 60 miles west of Jacksonville and about a quarter. Until 10:00 this morning, we either had very severe straight line winds or tornado. Our rescue personnel have cordoned off the extensive area on the north side of the Lake City up towards the I-10 area.

We are told it's a wide sloth of destruction. We do not have any confirmed reports of injuries, even though we do have reports of residents trapped in homes that have been damaged.

HARRIS: Boy, OK. Right now, what kind of a response can you mount? I'm wondering if you're into a light rain event now, a heavy rain event now? What's the situation as you look out of your window now?

CAMPBELL: Well, the weather service indicated to us about 15, 20 minutes ago that the worst probably passed us. It was certainly very ominous about the time that this tornado or straight line winds struck. And we have had reports of a tornado towards (INAUDIBLE) which is just west of us and just shortly thereafter the reports here, our phones in 911 just lit up.

And so we have damage assessment teams that are now meeting and are getting ready to head out and try to get a handle on just what -- how extensive the damage has been.

HARRIS: And perhaps we will get back to you in just a bit, Harvey, when you get those assessments in. Harvey Campbell is the public information officer for Columbia County, Florida Emergency Management. Harvey, thanks for your time.

John McCain wraps up the Republican nomination, but can he slow down while Barack Obama, Hillary Clinton duke it out? With us from Washington, Republican strategist and CNN contributor Amy Holmes.

Also, we were finally able to find you, Amy.

AMY HOLMES, REPUBLICAN STRATEGIST: Good morning.

HARRIS: Oh, you can make the big evening shows in the election center, but you can't find time for Tony Harris in the NEWSROOM. Good to have you.

HOLMES: I love being with you, Tony. You know that.

HARRIS: Just had to put in the dig there. And Democratic strategist Liz Chadderdon joins us.

Liz, great to see you as well.

LIZ CHADDERDON, DEMOCRATIC STRATEGIST: Thank you, Tony. It's good to be here.

HARRIS: Hey, let's start with this idea of whether or not it was a lot of -- there was a lot of conversation about it yesterday on the shows. Maybe we can pick it up again today of whether or not there will be do-overs in Michigan and in Florida. I think we have a clear idea from Florida's Governor Charlie Crist to where he sits on this issue. Here he is yesterday on AMERICAN MORNING.

(BEGIN VIDEO CLIP) GOV. CHARLIE CRIST (R), FLORIDA: It is unconscionable that people's vote will not count. They should count. They should be seated. I've already had communications with Senator Bill Nelson who happens to be a Democrat and Senator Mel Martinez from Florida, a Republican. They both agree that the right thing to do is to have those votes that are already cast count.

(END VIDEO CLIP)

HARRIS: Hey, Liz, what do you think? What's going to happen with Florida?

CHADDERDON: Well, Tony, it is definitely going to be a war over these delegates. But I just have to say that Governor Crist knew months ago what the situation was and he clearly just chose to ignore it. And now he's going to make a big stink about it.

So, you know, Florida and Michigan knew what the party rules were. They chose to break them. Now, they're facing the consequences. But it is definitely something that we've got to resolve. Personally, I like Congressman John Conyers' remarks this morning. He is from Michigan and he said, you know what, let's just split them up evenly between the two candidates and move on. And you know what, I think that's probably the most fair thing to do at this point.

HARRIS: Amy, how is it that Charlie Crist can sit here now and present himself as a hero, the knight with the answer here when he knew months ago about a potential situation like this and make the decision that the state made?

HOLMES: Well, for goodness sakes. Democrats are blaming Republicans for the mess of their own making. The Democratic Party of Florida was given an option to follow the rules or to break the rules. They chose to break the rules. And the Florida chairwoman, I read a quote of hers as saying, we could have held a caucus later, but they wanted to, you know, be right up front, and have their votes matter in the Democratic -- or at least to have their voices heard. So blaming Charlie Crist about this is, I think, totally absurd.

But I would tell Democrats when he's offering to have you guys do a re-do, look that gift horse squarely in the mouth. He's not doing that for the Democratic Party's health. He is doing that because he wants to bring money to Florida. He's representing all the people of Florida and to watch those Democrats duel it out, battle it out, and possibly, you know, really get some good digs in there for John McCain's expenses.

HARRIS: You're nodding, Liz. Do you agree with that?

CHADDERDON: Actually, you know, it does happen occasionally in Washington where Democrats and Republicans agree. And I think in this case Amy and I do agree. I do think Charlie Crist had some alternative, you know, reasons for supporting having a new primary.

But, you know, at the end of the day -- I mean, am a Democrat and I'm very proud of Howard Dean, actually, for sticking to his guns. He set the party rules. He set them months ago. Florida and Michigan broke the rules and this is what happened.

HARRIS: All right. You guys are agreeing so we're moving on.

Hey, Liz, what do you think about this notion that a protracted Democratic nominating process is hurtful to the party?

CHADDERDON: Well, I have to tell you, Tony, I don't think it's great for the party. I don't think we're going to hurt...

HARRIS: Come on, don't you want these fully vetted? Don't you want these candidates fully vetted out and isn't that a process that could be beneficial -- boy, there's a notion -- beneficial for Barack Obama?

CHADDERDON: Perhaps. I mean, we are all certainly really excited about the turnout that we've seen. The momentum that we've seen. People on the ground across the country are so excited. We've seen record turn out. But at the same time, now that the Republicans have a nominee, John McCain now gets to take some downtime, rest, raise more money. We don't. We get to spend all our money, run ourselves ragged. You know, time is of the essence in the campaign. It's the one resource you can't have enough of. And I'm just a little fearful that if this goes on too long for us, we're going to face a well-rested and well-funded Republican nominee.

HARRIS: But you're in the headlines every day. And Amy, your guy isn't necessarily in the headlines every day. How do you view this?

HOLMES: Oh, boy, you know, in politics, not all publicity is good publicity. We know that. John McCain knew that with "The New York Times" with that lobbying story. So to have Democrats battling it out, possibly, you know, hurting each other, Hillary versus Obama for the general election, that's not good for them.

And I agree that I thought Tuesday was actually the worst possible result for Democrats that they did not get a clear frontrunner so they could coalesce behind that person and start duking it out with John McCain.

HARRIS: But Amy, this is a campaign on the Democratic side that looks like it might go all of the way through to June 7th in Puerto Rico.

CHADDERDON: Oh, one can hope. One can hope.

HARRIS: But wait a minute. How does John McCain break into the news cycle if every day we're talking about the latest results and caucus and primaries for the Democrats?

HOLMES: Sure, he can do all sorts of things. He can start to float names of vice presidential running mate possibilities.

HARRIS: Do you want to float a couple here? HOLMES: No, I'm not going to try to see John McCain's mind. I don't know what's in it. But he can also, you know, talk about cabinet positions. You know, possible people there. He can also do something dramatic like go to Iraq, go to Afghanistan, meet with the troops. Look at the situation on the ground. John McCain has an opportunity right now to look presidential while the Democrats are still battling it out for their nominee.

HARRIS: All right. Liz, Amy, I'm done. I'm fresh out of questions. Have a great weekend. Thanks for the time this morning. We appreciate it.

CHADDERDON: Thanks, Tony.

HOLMES: Thank you.

HARRIS: And word just in from the State Department. One American was among the eight students killed at a Jewish seminary in Jerusalem and an American is among the nine wounded in that shooting. Some finger pointing going on this morning about who was behind that attack. CNN's Atika Shubert is in Gaza and on the phone with us right now.

Atika, what can you tell us? We took this question up with Ben Wedeman last hour. I wonder if you can move us forward on this. What are you hearing at claims of responsibility?

ATIKA SHUBERT, CNN CORRESPONDENT: Well, Tony, the bottom line is we don't know exactly who is responsible for this attack, but we do know that a group called the Brigade of Free Men of Galilei has claimed responsibility. They are a group that apparently has links to Hezbollah in Lebanon and possibly with Hamas.

Now, these claims have carried out a joint attack but will not name who the other organization is. Now, we've checked with our Hamas sources here in Gaza. They say that the attacker may have been associated with Hamas but that the order for the attack did not come from Gaza or the West Bank.

And a military source we spoke to in Hamas says that Hamas here in Gaza had nothing to do with the attack. So this is another one of those cases, as often happens after these attacks, where there are many different claims and counter claims. We may never know exactly who was behind this. But it is important to know who claims direct responsibility because whoever does can expect a very quick and often deadly response from Israeli forces.

HARRIS: That's right. Atika Shubert on the phone with us from Gaza this morning. Atika, thank you.

A popular student body president gunned down.

(BEGIN VIDEO CLIP)

BUDDY SIMS, EVE CARSON'S BIOLOGY TEACHER: Not that many good human beings around anymore. She was really one of them. And just a person who was going to do good things for other people.

(END VIDEO CLIP)

HARRIS: Another campus is in mourning. The investigation ahead.

(COMMERCIAL BREAK)

HARRIS: All right. Let's get you to Bonnie Schneider once again. There she is in the CNN severe weather center. Boy, you were working overtime this morning, Bonnie.

SCHNEIDER: Yes, I am. Well, unfortunately it's because of all the severe weather. And we have a new tornado warning for Alachua County. That does include the city of Gainesville, where the University of Florida is located. It's just amazing. These tornadoes are reported. There's a real time lightning for you. Actually, moving at a speed of 50 miles per hour. This is some fast-moving storms.

So, this tornado warning includes the county I mentioned earlier, Bradford, Clay, Levy and Putnam County. All part of a larger system that's producing a tornado watch and that goes until noon. Here's another newer tornado warning. And this time we're talking about Coastal Georgia. If we query this area, we can show you that right now we're looking at tornadoes that are just -- tornado warning that is to the east of Savannah in Chatham County. And we're going to slide down to Florida because we still have some areas that we're watching there.

Just to the north of the tornado watch box into Georgia, we have a tornado warning that continues for areas like Brunswick, Georgia. That goes until 11:00. So that 13 minutes from there. And another tornado warning as well, north and south of each other as lot of this energy is pushing to the northeast. And this one includes counties like Brantley where we had reporting of flooding and unfortunately wind damage.

Wind damage has been also a big story in Florida as we've seem to have reports of unconfirmed touchdowns of tornadoes in Keaton Beach, Florida and also power outages in and around the Live Oak area. So serious situation for huge areas.

HARRIS: Yes, absolutely. And you know what, we just got this into the CNN NEWSROOM. I want to have you listen to it right now. We've got an affiliate reporter in the Tallahassee area who is talking to someone who, boy, has made it through the storm but you can see some of the damage here. Let's listen in. You can absolutely see the damage.

(BEGIN VIDEO CLIP)

UNIDENTIFIED REPORTER: And what do you do for a living?

UNIDENTIFIED FEMALE: I work for Big Bend Community-Based Care. I'm a trainer. I train investigators and case managers for the state.

UNIDENTIFIED REPORTER: Can we take a look? Would you mind?

UNIDENTIFIED FEMALE: It's not safe. I'm afraid to let you go in too far. Everything is shifted to the side.

UNIDENTIFIED REPORTER: We won't go in too far.

UNIDENTIFIED FEMALE: You can see where it took off the foundations over there. The men are trying to move things to the lawn. This way the chimney came down. It blew the air vent up. But unless they get a roof on it, a tarp on there, then the drywall will start falling down and that will be the end of everything. I know because I already went through a hurricane.

UNIDENTIFIED REPORTER: How old is this house, do you know?

UNIDENTIFIED FEMALE: Almost 100 years old.

UNIDENTIFIED REPORTER: OK.

UNIDENTIFIED FEMALE: I worked hard on it.

UNIDENTIFIED REPORTER: Yes, it looks like a gorgeous house.

UNIDENTIFIED FEMALE: It was in bad shape when I bought it and I put a lot of money into it and really worked hard on it and I'm just devastating.

UNIDENTIFIED REPORTER: I'm going to take a quick look in, if that's OK.

UNIDENTIFIED FEMALE: All right. Just be careful.

I UNIDENTIFIED REPORTER: I'm at my own risk, I promise.

UNIDENTIFIED FEMALE: OK. I already went through this once with Hurricane Andrew. (INAUDIBLE)

(END VIDEO CLIP)

HARRIS: Man, oh, man that poor woman and her family. The inside of their home right now. This is very near Tallahassee, Florida. And this is the visible, tangible evidence of the storm systems we've been talking about all morning. We wondered when we might start seeing the first pictures of some of the damage. Well, here you go.

We talked to an official with either the Tallahassee police or emergency management in that area. And the description from that gentleman was frightening of either a tornado or a straight line winds in that area and the damage that was being done.

The early reporting there was of some injuries, but no fatalities. But now, you can see just what it is like for so many in the area and particularly this woman and this family. Trees snapped in half here, roofs taken apart. I think she mentioned that the chimney had essentially collapsed. And more of the damage and now this is the process that will be playing on for so many people in Florida and in south and southeast Georgia this morning.

A cleaning up. Salvaging what is left of their homes. What a mess. This storm system with its energy being fueled by the Gulf of Mexico through Mississippi, Alabama certainly not causing the kind of damage there in those areas that we are seeing in Florida and Southeast Georgia. But these pictures, most immediately from the Tallahassee area right now. And this is devastating. Devastating pictures.

And again, we're going to encourage you, if you're in an area that the storm is actually passed through and you can help us with some I-reports in telling of this story of the weather, we would really appreciate it. Just go to cnn.com and type in I-report and send us your pictures, your video.

As you take a look at the radar right now, you can see just how wide spread an area is impacted by this storm and what's been amazing in watching this, this morning is normally when the storms come ashore, what they do, and boy, you followed our coverage of these storms long enough to know this and speak it yourself.

These storms tend to sort of break apart and lose their intensity. What's been amazing about watching this system this morning and Bonnie Schneider has been with us every step of the way here is this storm has maintained its intensity.

SCHNEIDER: That's right, Tony. And one of the dangers is that we've been getting reports of rain-wrapped tornadoes. This storm system has been producing a constant flow of steady rain. You can see it feeding up from the Gulf of Mexico. So that's why it's such a serious situation. The movement has been incredible. The speed at which these storms are traveling 50 miles per hour. So we are seeing reports from hours ago, in and around the Tallahassee area.

And now, we're under the gun for a tornado warning for Gainesville. So if you're in this region, take cover now. It's a very serious situation. These storms have a very deadly history of producing severe damage and it's tough to see where the tornadoes are.

HARRIS: OK, OK. Sorry, Bonnie. I was just talking to Sean. And Sean was making the point that I suspect you would have made in just a moment here that this idea of the storms breaking apart is probably not accurate because we normally think of -- refer to -- we'll get to break in a second. But let me just clear this up.

We normally think of hurricanes as breaking up, correct, Sean, as they come and make landfall but this is a system that obviously is continuing to move across Florida and doing a lot of damage. So I just want to take a moment and clear that up. Got to rush to a break and we're back in a moment.

(COMMERCIAL BREAK)

HARRIS: Police are chasing the lead, spanning out across the campus of Auburn University. Freshman Lauren Burk from suburban Atlanta was found shot Tuesday night. She died in an area hospital. Her burning car discovered in a campus parking lot. Police reportedly have interviewed several persons of interest. Alabama's governor is offering a $10,000 reward for information leading to her killer.

Another campus in mourning to tell you about. Teachers and students at the University of North Carolina in Chapel Hill stunned by the violent death of the student body president. Senior Eve Carson of Athens, Georgia was gunned down Wednesday night not far from campus. Police say they have no suspects. But the crime appears to be random.

(BEGIN VIDEO CLIP)

BUDDY SIMS, EVE CARSON'S BIOLOGY TEACHER: Not that many good human beings around anymore. She was really one of them. And just a person who was going to do good things for other people.

(END VIDEO CLIP)

HARRIS: Carson's car was found about a mile away from her body. Investigators believe it might have been stolen during the crime. Police say nothing suggests the UNC and Auburn killings are linked.

A blast of bad weather in the southeast, reports of tornadoes, homes destroyed. It is happening right now live to the severe weather center and Bonnie Schneider.

(COMMERCIAL BREAK)

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