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American Morning
Asian Markets Crumble; Times Square Explosion: Manhunt for the Bomber; Delegate Do-over?; Debut of 'Cat on a Hot Tin Roof' on Broadway
Aired March 07, 2008 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JOHN ROBERTS, CNN ANCHOR: And good morning. Thanks very much for being with us. I'm John Roberts in Washington on this Friday, the 7th of March. And unfortunately, Kiran, seven not a lucky number today in terms of the economy.
KIRAN CHETRY, CNN ANCHOR: Oh, certainly not. We have a lot going on today, and we got you covered this morning if you're just joining us. So we have collapsing home prices to talk about as well as skyrocketing oil prices and a key look at your job security. It's a crucial day for your money.
The price of oil spiking to a record again in overnight trading, closing in on $106 a barrel, and more people are losing their homes than ever before. In fact, the numbers showed that foreclosures have also hit a new high. And markets were rocked overseas overnight, right now, for them. Tokyo and Beijing dropping more than three percent adding up to the biggest weekly drop since August.
Our senior business correspondent Ali Velshi watching all of it for us this morning. And you're back from Texas. You brought the barrel with you. What's going on?
ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: Well, I wish I had better news on my first day back, but what goes on depends on a few things. One of them is the price of oil right behind me. Look at that. $105.47 is where oil settled in New York yesterday. After that, it traded even higher to $105.80 for a barrel of oil.
I know Gerri told you about the price of gas yesterday. Right now, gasoline -- the national average for a gallon of self-service unleaded is $3.18. A little more than that, about $3.185. That is just 4 cents away from the all-time high which was set last May of $3.22 a gallon. Of course, a lot of people around the United States are paying much more than that, but the trend is heading up again for gasoline and that's earlier than it should be for the price of gas.
Let's also take a look at markets. You talked a little bit, Kiran, about the markets overseas. We've got India, China, and Tokyo all off more than three percent. The Dow on Friday closing 1.75 percent lower. The Nasdaq even worse than that. The S&P down as well. So right now, we're looking at a tough day for futures.
But at 8:30 a.m. Eastern, 2 1/2 hours from now, we're going to get the employment numbers for the month of February. We're expecting the unemployment rate in the United States to increase to five percent. We'll be looking very closely at that and the number of jobs that were either created or lost, and that will influence how trading is going. Remember, if we are in an economic downturn, the one thing that matters more than even your home prices and your energy prices, both of which are bleak, is your job and your ability to earn an income. So we'll take a tight look at that all morning.
CHETRY: All right. We'll also find out some tales from Texas a little bit later in the hour.
(CROSSTALK)
VELSHI: Absolutely.
CHETRY: Thanks, Ali.
VELSHI: OK.
CHETRY: John?
ROBERTS: A first look at the blast this morning, Kiran. And new information in the Times Square bombing investigation. Take a look at this videotape.
Surveillance video shows a person ride up to the army recruiting station down there at 43rd and Broadway on a bicycle, then a flash and a cloud of white smoke in the heart of New York City. Hours later, police say letters arrived on Capitol Hill, letters with pictures of that recruiting station and the words, "We did it."
CNN's Kate Bolduan is live on Capitol Hill with brand new details. Kate, what are we learning this morning?
KATE BOLDUAN, CNN CORRESPONDENT: Well, we're learning a few more details are coming out today, John. The FBI does say they have a person of interest that they are talking to in L.A. in connection with letters sent to Congress, but they say it is not -- this person is not a suspect in the New York blast. Now, this is a very interesting twist that's bringing the focus here to Capitol Hill. Law enforcement officials say that as many as 10 letters were sent to Democratic lawmakers. The letters arrived to their offices yesterday, but to which offices, that's still not clear. They have not released which offices quite yet.
In the letter, law enforcement says, is this picture, as you mentioned, of this military recruiting station in Times Square prior to the blast, and the claim, "We did it." But law enforcement were quick to point out that they have not established a connection between these letters and the New York incident.
Now, Terrance Gainer, he's the Senate sergeant at arms, the chief law enforcement officer here, he says he spoke to the "Washington Post" and said that these letters, they're long and they're rambling. And he goes on to say that they may have evidentiary value, they may not. "We are not at general quarters about this at all." So clearly, they're still investigating. That's to say the least. Now, according to an e-mail that was sent from California Senator Dianne Feinstein's office, it says that in the letter, it also included a political manifesto. Now, the FBI, Capitol police and the U.S. Postal Inspection Service, they're all on top of this, John.
ROBERTS: So Kate, is it possible that this is just a remarkable coincidence, the fact that these letters were sent to Capitol Hill on the same day that this small bombing happened in New York City?
BOLDUAN: John, it sure is hard to believe that, but from what we're hearing from law enforcement officials, they are very careful to not make a connection. So there is a possibility that this could be some very strange coincidence. But, of course, they're going to be very careful in what they release and when they establish those connections, if they are there.
ROBERTS: Certainly would be bizarre if it were. Kate Bolduan for us this morning on Capitol Hill. Kate, thanks. We'll get back to you this morning as we get more information on this.
And we will get some more information from New York City Police Commissioner Ray Kelly coming up at our next hour of AMERICAN MORNING. He'll be dropping in at 7:15 Eastern.
Meantime, one of the most popular stories overnight on CNN.com, Ron Paul hinting to supporters on his Web site that he may be ending his long-shot campaign for the presidency. He did not come right out and say that he was dropping out, only that his campaign was entering a new phase. Listen to this.
(BEGIN VIDEO CLIP)
RON PAUL (R), PRESIDENTIAL CANDIDATE: Victory in the conventional, political sense is not available in the presidential race. Many victories have been achieved due to your hard work and enthusiasm. For that, I am deeply grateful and encouraged. We must remember, elections are short-term efforts. Revolutions are long-term projects.
(END VIDEO CLIP)
ROBERTS: Ron Paul says that he is hoping voters see that his campaign is proof the country's political system needs to be changed.
Wyoming is the next Democratic battleground. Both Hillary Clinton and Barack Obama plan to campaign there today ahead of the caucuses tomorrow. There are 18 total delegates at stake in Wyoming. That includes six superdelegates.
Meantime, the counting drags on from the Texas caucuses on Tuesday, not done yet. Results are only in for half of the voting sites. Barack Obama right now sits with 56 percent of the vote. Hillary Clinton has 44 percent. Tuesday's caucuses were so chaotic and overcrowded by record turnout that police were called in to some polling places. Officials say that we might not have a winner named until the end of this month. There are 67 delegates at stake in those caucuses. Hillary Clinton won the Texas primary, which included two- thirds of Texas delegates -- Kiran.
CHETRY: That's right. And a day away from the next contest in the Democratic battle. The candidates are firing hard. Senator Hillary Clinton taking another shot at Barack Obama's national security credentials, this time in front of military officers.
(BEGIN VIDEO CLIP)
SEN. HILLARY CLINTON (D-NY), PRESIDENTIAL CANDIDATE: He said that Senator McCain will bring a lifetime of experience to the campaign. I will bring a lifetime of experience, and Senator Obama will bring a speech that he gave in 2002. National security will be front and center in this election. We all know that.
And I think it's imperative that each of us be able to demonstrate we can cross the commander in chief threshold. And I believe that I've done that. Certainly, Senator McCain has done that, and you'll have to ask Senator Obama, with respect to his candidacy.
(END VIDEO CLIP)
CHETRY: Meantime, the Obama campaign is apologizing about something printed in a Scottish newspaper. The paper claims an unpaid Obama aide named Samantha Power, called Senator Clinton a monster. Late last night, the campaign issued an apology from Power and condemned the remark.
Well, our Alina Cho is here with some other stories new this morning. Good to see you, Alina.
ALINA CHO, CNN CORRESPONDENT: Hey there, Kiran, good morning to you. Good morning, everybody.
Al-Qaeda could be plotting more urgently to attack on American soil. That's the word from a top U.S. commander. Counterterrorism officials say they're troubled by the so-called chatter they're hearing among suspected terrorists. An air force general says the chatter is more common now, but he won't say whether it's grown louder. Still, U.S. officials warn Americans should not let their guard down, even if there's no direct threat.
President Bush is condemning an attack inside a Jewish seminary in Jerusalem. Police say the gunman walked in and began firing in all directions, killing eight people and injuring nine others. The president called yesterday's shooting a "barbaric and vicious attack on innocent civilians." It was the first attack inside Jerusalem in nearly four years.
There is shock at the campus of the University of North Carolina at Chapel Hill. Thousands gathered to remember student body president Eve Carson. The 22-year-old was shot and killed near campus early Wednesday. Police say it appears to be a random crime, and they have no suspects in custody. A student from Auburn University in Alabama was killed earlier this week, but police say they don't believe the two shootings are connected. A stunning CNN investigation has found Southwest Airlines flew thousands of passengers on more than 100 planes deemed unsafe. According to congressional documents obtained by CNN, FAA inspectors say planes that should have been grounded flew for 2 1/2 years past government inspection deadlines. The documents also allege that some officials at the FAA knew the planes were still in the air and did nothing about it. One congressman said it's one of the worst safety violations he's ever seen. We're going to be talking to the CEO of Southwest Airlines, Gary Kelly, about these claims coming up at 7:30 Eastern time. You'll want to stick around for that.
And we all learned in school that the planet Saturn has rings. Well, now there's word of a mini me. Scientists say there's new evidence one of Saturn's moons may have rings. Now, if confirmed, it would be the first time a ring system has ever been found around a moon. This, of course, is an artist rendition of Saturn's moon.
Rhea, a spacecraft fly-by in 2005, apparently detected those apparent arch. The particles range from near specs to boulders. Unclear where the rings, if they are actually rings, came from. But one explanation is that they may have formed as a result of an asteroid or a comet collision.
So people are starting to rewrite those school textbooks and have to --
(CROSSTALK)
CHETRY: Yes. They already had to --
They already had to get rid of poor Pluto, right?
CHO: Exactly. And now, word of --
CHETRY: What's next?
CHO: Saturn rings around the moon.
CHETRY: Solar systems are changing. All right, Alina, thanks so much.
CHO: You bet.
CHETRY: John?
ROBERTS: It's all the fashion in the neighborhood.
You're watching the "Most News in the Morning." Google street new technology lets you see detailed street-level images of places on your computer. But when one of those places is a military base, is it a good idea to have images like that? We'll ask that question.
And watching one of the most heated races of all time from the sidelines, what to do with Florida and Michigan's democratic delegates. Maybe a do-over? The debate live from D.C., next on AMERICAN MORNING. (COMMERCIAL BREAK)
CHETRY: Welcome back to AMERICAN MORNING. You know, Google Earth can take you just about anywhere these days. Where it won't take you now is to U.S. military bases. This after detailed images from Fort Sam Houston in San Antonio were posted on the Web site. The Defense Department has barred Google from making detailed street-level maps of military bases.
Would seem like a no-brainer. Google can still have the satellite view, but not ground-level pictures like the ones you're seeing. Google said that taking pictures inside the base is against its policy, and it was a mistake to do so.
Well, get ready to call your airlines this morning. There's some rough weather. It's down south, but it could cause delays at airports across the country. Here's some video that we have of snow falling across Oklahoma and Arkansas. As much as a foot could be on the ground by tonight. Some thunderstorms are expected across Louisiana as well.
Our Bonnie Schneider is at the weather update desk tracking this extreme weather for us from Atlanta this morning. Hey, Bonnie. You know, and, of course, right in time for the weekend, when a lot of people are going to be traveling.
BONNIE SCHNEIDER, AMERICAN MORNING METEOROLOGIST: That's right. A busy Friday, no doubt about it. And we're seeing a combination of heavy rain across cities like Montgomery and Alabama. But on the back side of the system, the air is cold enough for snow as far south as central Texas. We already have snow on the ground in Dallas, an inch, which shattered a record yesterday, but look at this, more snow continues. The wintry weather sliding across Texas, moving into Arkansas at this hour.
So from Little Rock, you're getting some light snow this morning, but more of that is on the way. More of a wintry mix to the south and in Portsmouth as well. Heavy snow is expected. We could see up to seven inches in the Little Rock area. Now, in advance of this system, we've had some heavy rain across much of the south into areas of Mississippi and Alabama and also into Georgia. The rain is continuing to be heavy and hard across the Atlanta area. As we slide further to the north and east, you'll see some more heavy rain for this region. And yes, that will slow you down at the airport.
Here's a look at what you can expect for airport delays. Look for snow and low clouds in Dallas. That will slow you down. We're also expecting delays into Houston with rain and low clouds, possibly up to an hour delay or more with heavy rain in Atlanta and thunderstorms. You know, when the rain starts, Kiran, so early in the morning, that's not a good sign for the flights expected to arrive and depart from Hartsfield today.
CHETRY: Not at all. All right. Well, keep us posted on how it's shaping up, Bonnie. We'll check in with you throughout the morning. Thanks. ROBERTS: What to do with all those delegates. In a race where everyone counts, two states, Florida and Michigan are being shut out for breaking party rules. Could there be a do-over? It's increasingly looking like they're trying to figure out how to make that happen.
Here now live in Washington is our CNN political analyst John Dickerson. John, we talked with Howard Dean, the chairman of the DNC, and Governor Charlie Crist of Florida on AMERICAN MORNING. Here's how they put this whole thing in perspective, from their respective points of view.
(BEGIN VIDEO CLIP)
HOWARD DEAN, DNC CHAIRMAN: I've got to run a process where everybody believes this is an honest result, and the only way to do that is to stick to the rules.
GOV. CHARLIE CRIST (R), FLORIDA: It is unconscionable that people's votes will not count. They should count. They should be seated.
(END VIDEO CLIP)
ROBERTS: Where is all this heading? They've tried yesterday to get a resolution and it fell apart. They might try again today.
JOHN DICKERSON, CNN POLITICAL ANALYST: It's a mess. The Washington Democrats are saying the states should figure out. The states are looking for some kind of answer from above. It's expensive, $10 million in Michigan alone to run some kind of firehouse caucus or primary. So it's expensive and they don't know how to pay for it, and the two campaigns are having their own little dance. There's a bit of a break this week, though, that both the Clinton and the Obama folks seem open to some kind of a do-over. We just don't know the shape yet.
ROBERTS: Both Governor Crist of Florida and Governor Jennifer Granholm of Michigan are saying, hey, we'd like to have another contest, but we're not going to pay for it. But they signed off on moving these primaries up. Now, they want the DNC to pay for it. Should Howard Dean be forced to open up his wallet to pay for something that they signed off on?
DICKERSON: Well, this is the argument, and Dean would say no. No, you deal with it. The problem is there is a big problem here. And, you know, Democrats don't want to lose these two important states, and the two campaigns want some kind of clarity. They're trying to figure out their battle map. As things get very tight and ugly in the Democratic race, they need to know what's going to happen.
One interesting thought, a Democratic strategist suggested to me is maybe some big donor from the Democratic Party could come in and drop a little money here. The state parties can take that soft money. They can take a big donation. So perhaps some Democrat out there might just start writing checks. ROBERTS: You know, I was talking to Dan Glickman, the former Agriculture secretary in the Clinton administration last night at this industry event we were at, and he said maybe Warren Buffett could bankroll the whole thing. But, you know, if Warren -- if somebody bankrolls it, then it could potentially be seen as buying votes. And if they went with the results as they are now, wouldn't that favor Hillary Clinton? If they split it 50/50 and said everybody who went to the convention, have a good time, but you're really not going to affect the whole thing. I mean, people could make arguments against all of that. So what really is the only solution here?
DICKERSON: Well, the solution will come from the fact that Democrats, no matter who they are, will realize this makes the party look goofy, and that you don't want to be running to, you know, run the country when your party looks goofy. So everybody might have their different positions now, but in the end, they've got to come around something that will make it look like a serious party with a serious process.
ROBERTS: I mean, what's the immediate effect? John McCain is out there. He's running a national campaign now, and meanwhile, we're back to arguing about Florida again and throwing Michigan in just for good measure.
DICKERSON: Well, that's right. And the Democratic race is already complicated enough. There's this debate about superdelegates versus pledged delegates. There are lots of conversations in the Democratic Party that are already a little distanced from the way people live their lives. This here is another one in which Democrats are talking about process and rules and things like that. And they're not talking about what hits people in their, you know, kitchen tables in the morning, and that's something that distances the party from what they want to be talking about in November.
ROBERTS: Now, they're going to get back at it again today and work out some kind of compromise. We'll see if they could do it. John, we'll get you back a little bit later on to talk about where the Democratic race is going now with Wyoming and those Mississippi contests coming up.
DICKERSON: Sounds good.
ROBERTS: John Dickerson, good to see you -- Kiran.
CHETRY: Thanks.
Well, there's a new twist on an old classic Tennessee Williams' "Cat on a Hot Tin Roof" finds a new life on Broadway. Lola Ogunnaike takes us on the red carpet and shows us why this latest revival is making history.
And a tourist in the outback almost bit off more than he could chew. We're going to show you the next frame after this one. Why a photo-op -- ooh, there it is -- almost landed him in the E.R. Your "Hot Shot" coming up next.
(COMMERCIAL BREAK)
ROBERTS: Twenty-two minutes after the hour. He said he didn't realize that crocs were so aggressive. He ended up learning that lesson the hard way. Your "Hot Shot" now. Take a look at this.
A tourist fishing in Australia's spots a 16-foot crocodile. He sees a great photo-op and decides to lean forward and take a picture with the gator. Duh? That's when the croc snapped, burst out of the water, jaws open, teeth flashing -- just barely missed its target. The guy's friend captured the near-fatal attack from a nearby boat. Folks, don't try this at home.
And if you've got a "Hot Shot," send it to us. Head to our Web site, CNN.com/am and follow the "Hot Shot" link. Kiran, a lesson in what not to do when you're fishing.
CHETRY: And I love it. Hats off to the writer who wrote "G'day...Bait" instead of mate. I love it. Oh, boy, the jaws of a croc, how about that?
Well, from crocodiles to cats, "Cat on a Hot Tin Roof" vintage Tennessee Williams. You could say that the film version launched the careers of Elizabeth Taylor and Paul Newman. And last night they made history on Broadway, lifting the curtain on the latest revival.
AMERICAN MORNING's Lola Ogunnaike was there for the premiere of the first all-black production. It stars James Earl Jones as big daddy.
(BEGIN VIDEOTAPE)
LOLA OGUNNAIKE, CNN ENTERTAINMENT CORRESPONDENT (on camera): What was it about this role that made you decide that this was worth getting out of bed for James Earl Jones to do?
JAMES EARL JONES, "CAT ON A HOT TIN ROOF": I get to say all the nasty words that human beings can say, and I don't get arrested for them.
(BEGIN VIDEO CLIP)
JONES: Turn that thing off!
UNIDENTIFIED FEMALE: That's my precious baby.
JONES: Sorry, turn it back on.
(END VIDEO CLIP)
TERRENCE HOWARD, "CAT ON A HOT TIN ROOF": You know, I'll be able to say I worked with James Earl Jones. He was my father, and he looked me in the eye like I was his son for real.
(BEGIN VIDEO CLIP)
HOWARD: I'm in pain. Someone stepped on that foot. JONES: Good. I'm glad you're not too numb with the (INAUDIBLE) to feel some pain.
(END VIDEO CLIP)
JEREMY PIVEN, ACTOR: It's an incredible cast, James Earl Jones. I mean, these guys are just like they're the best at what they do. So I'm just here just to steal as much as I can from them.
OGUNNAIKE: It is an interesting time in the culture, isn't it? I mean, you've got a black man running for president. You've got an all-black cast on Broadway. What is in the air? What is changing culturally in America right now?
DEBBIE ALLEN, "CAT ON A HOT TIN ROOF": The voice of America needs to be strong, and we have to not just talk the talk, we have to walk the walk here at home. And that's what's happening on Broadway.
(END VIDEOTAPE)
CHETRY: -- to not only chat with people up on the red carpet, but you had a chance to see it for yourself. What do you think?
OGUNNAIKE: Well, you know, I was a bit worried going in, Kiran. It's two hours and 45 minutes long, two intermissions. So it is a heck of a commitment.
CHETRY: "Titanic" long.
OGUNNAIKE: Yes, nearly. But I have to say, I was not blown away by the play in its entirety. But the second act with James Earl Jones and Terrence Howard just going back and forth, it is riveting, and you really feel like you're watching this elder statesman pass the baton along to this young actor. And just watching James Earl Jones, he still has it after all these years. The voice is as strong and booming and as iconic as ever, and Terrence Howard more than holds his own. So it's worth it alone just to sit there and watch these two greats go at it.
CHETRY: Very exciting. So another recommendation, something else new to see on Broadway. Pretty cool. Thanks, Lola -- John.
ROBERTS: Is there a link between childhood vaccines and autism? Last night, "LARRY KING LIVE" talked exclusively with the parents of a young girl who say that her symptoms were triggered by a series of shots. Health officials agreed in a rare ruling, even though the government has consistently sided research that says there is no link, no direct link between vaccines and autism. The head of the CDC responding to the decision called it a rare exception.
And that brings us to this morning's "Quick Vote" question. Do you believe that there is a connection between childhood vaccines and autism? Cast your vote for us this morning at CNN.com/am. We'll tally your votes and talk with our own Dr. Sanjay Gupta coming up in our next hour. You're watching the "Most News in the Morning." Thousands of passengers flew on Southwest Airlines planes that Southwest officials and the FAA regulators knew were unsafe to fly. That surprising story is coming up.
And small planes were damaged by a Florida storm packing winds of nearly 100 miles an hour. Our Bonnie Schneider is tracking extreme weather for us. That and today's important headlines when AMERICAN MORNING returns.
(COMMERCIAL BREAK)
KIRAN CHETRY, CNN ANCHOR: Welcome back to AMERICAN MORNING. A beautiful sunrise this morning over the East River, looking toward Long Island this morning. It is 35 degrees right now. Feels like 29 and shaping up -- what are we looking at for a high today? Well, warmer than that. I know that for sure. Fifties, 50s today, all right.
Well, welcome back once again to AMERICAN MORNING. And don't forget also, John, this is fallback time. Daylight saving, Saturday into Sunday.
JOHN ROBERTS, CNN ANCHOR: You mean spring ahead time.
CHETRY: Spring ahead, that's right.
ROBERTS: Just the very thought of losing an hour of sleep over the weekend is enough to sort of scramble your brain a little bit.
Hey, if you're going to catch a flight this morning, consider this. Southwest Airlines could face the biggest fine ever by the Federal Aviation Administration. The $10.2 million fine comes after CNN first broke the story. That Southwest knowingly flew unsafe planes.
CNN investigative correspondent Drew Griffin has exclusive details on what congressional investigators are calling the worst air safety violation they have ever seen.
(BEGIN VIDEOTAPE)
DREW GRIFFIN, CNN CORRESPONDENT (voice-over): The airline flies more passengers than any domestic air carrier. But for at least ten days last year, dozens of Southwest planes were kept flying in direct violation of a federal order that grounded them until they could pass mandatory inspections, and that's only the beginning.
Some of the aircraft actually operated unsafely and illegally for as long as 30 months before they were pulled from service to be checked for cracks in the air frame or for rudder problems. And what's worse?
(on camera): Documents prepared by FAA safety inspectors for Congress and obtained exclusively by CNN, allege managers at the FAA, the agency responsible for commercial air safety, knew the planes were flying illegally and did nothing about it.
(voice-over): Why were safety concerns ignored? According to the documents, so the airline would not have to interrupt its normal operations.
REP. JAMES OBERSTAR (D), TRANSPORTATION CHAIRMAN: This is the most serious lapse in aviation safety at the FAA that I've seen in 23 years.
GRIFFIN: The inspection orders allegedly ignored by Southwest were put in place after three fatal incidents, all involving the Boeing 737, which is the only plane in the Southwest fleet. 70 Southwest jets flew beyond the deadline for inspection of their rudder systems. A mechanism blamed for two fatal crashes in 1991 and 1994.
The documents show another 47 Southwest jets kept flying after missing the deadline to be inspected for cracks in the plane's body. That mandatory inspection order came after cracks in this Aloha Air 737 eventually grew, peeling the top off a plane. When Southwest finally inspected the 47 planes, congressional documents show 6 were found to have serious cracks in the skin or fuselage.
Late Thursday evening, Southwest Airlines issued a response to the FAA penalty, stating "We understand the FAA's concerns and we're anxious to work with them. We assure our customers that this was never a safety of flight issue." The response states that "Southwest Airlines discovered the missed inspection area, disclosed it to the FAA, and promptly re-inspected all potentially affected aircraft in March 2007 and considered the matter closed."
Congressional investigators say the matter is far from closed. Drew Griffin, CNN, Atlanta.
(END VIDEOTAPE)
ROBERTS: And we are going to get Southwest Airlines' side of the story coming up at 7:30 Eastern, about an hour from now. Southwest CEO Gary Kelly will be joining us live.
Kiran?
CHETRY: All right, thanks a lot, John. We look forward to hearing his side of it. What he has to say about that.
Meanwhile, our "Financial Security Watch" continues this morning. Foreclosure rates hitting record highs. They are double what they were a year ago. Our senior business correspondent Ali Velshi joins us now to talk more about the ripple effect. I mean, even if your home is not in foreclosure, this is hitting the economy hard.
ALI VELSHI, CNN CORRESPONDENT: Sure. It hits it in a few ways and that's the thing to remember, because the number of homes in foreclosure, and I'll show you the numbers. They're not huge. In fact, when I was on the road in Texas, somebody pointed out to me that look at the number of homes in foreclosure, it's a small percentage. But let's remember that homeownership allowed people to get a little bit richer and spend that money elsewhere, and there is no economy that is more of a consumer economy than the U.S. economy.
So first of all, 1.06 percent of all homes in 2007 were in some degree of foreclosure. That's more than double the number in 2006. And that doubling has also occurred in the subprime sector. So when homes in your area are foreclosed upon, that means taxes aren't getting paid, your home can't sell because the cost of that home is going to be lower.
The other thing to keep in mind, for those of you who have been hearing about how the fed is likely to continue to cut rates, and they probably are. March 18th, I think is the next meeting. Remember that that doesn't directly affect the 30-year mortgage rate. The 30-year mortgage right now is going for 6.27 percent. You can probably do better than that if you have good credit. But that's almost a full percentage point higher than it was not too long ago.
So, just because the fed lowers rates, that may help you on your adjustable loans and things that are tied to prime. That's what the fed is tied to. It doesn't necessarily help you on the mortgage front. So that's something to keep in mind if you are waiting to see what this economy is doing. Home prices are continuing to drop in the United States. Those foreclosure rates are continuing to climb, but interest rates on a 30-year fixed mortgage not dropping.
Right now, a 30-year fixed is 5.98 percent. That's down a little bit from where it was last week, but it's still higher than it was a month ago. 5.26 percent for a 15-year and a 1-year ARM is 5.83 percent. So it does mean that there's probably not much benefit in gambling on an adjustable-rate mortgage right now.
CHETRY: All right. And coming up in just a couple hours, we're going to be getting some more numbers, employment numbers.
VELSHI: 8:30. That's one of the most important numbers out there. At 8:30 we'll get the monthly employment numbers for February. Expect the U.S. unemployment number to increase to 5 percent.
CHETRY: All right. Not good news, either. Also with the oil trading above $104, $105 a barrel and the high price of gas. So we're going to be digesting all this for you this morning. Ali, thank you.
And stay with us for all of the issues that matter to your money. Ali, Gerri Willis, and the rest of the CNN's best money team for financial security today at noon Eastern Time right here on CNN.
John?
ROBERTS: New this morning, Kiran, caught on tape. A first look at the Times Square explosion and the suspects who got away. The surveillance video shows a person run up to the army recruiting station at the corner of 43rd and Broadway in a bike, then a flash and a cloud of white smoke. Hours later, police say letters arrived on Capitol Hill with pictures of that recruiting station and the words "We did it." Federal agents in Los Angeles say they questioned the person of interest about those letters but have confirmed this morning that, quote "He is not the bomber."
The Senate agreeing to beef up the nation's product safety system responding to a wave of recalls last year. Lawmakers voted to increase staffing at the Consumer Product Safety Commission and to overhaul consumer safety laws. The house passed a similar but less extensive version back in December. The differences between the two bills must now be resolved before it's sent to President Bush to be signed into law.
And criminal charges have been filed against four executives at two American companies charged with importing and distributing toxic toothpaste. The products, made in China, were recalled last may after it was discovered they contained an ingredient commonly used in antifreeze. The tainted toothpaste was distributed to prisons, luxury hotels, hospitals, and discount stores.
Hillary Clinton and Barack Obama make a big push today in Wyoming. The state holds its Democratic caucuses tomorrow. There are 18 delegates at stake. That includes six super delegates. And days after Texas held its caucuses, less than half of the state's voting sites, just 41 percent have reported in. Barack Obama now stands at 56 percent, Hillary Clinton has 44 percent. 67 delegates are at stake there.
Senator Hillary Clinton's tough talk on NAFTA with a quote "rain of salt." That's the message from the Canadian prime minister's chief of staff. He reportedly says he was given by someone in the Clinton campaign. The news comes just days after a leaked memo appeared to show Canadian diplomats were assured by Senator Barack Obama's campaign that his criticism of NAFTA was merely political positioning. An accusation that Obama adamantly denies. Now the opposition parties in Canada are demanding that the prime minister fire his chief of staff for interfering in American politics.
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MICHAEL IGNATIFF, CANADIAN DEPUTY LIBERAL LEADER: We now find that their partisan games have gone international when it comes to the intent to skew the vote in Ohio.
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ROBERTS: The prime minister of Canada is launching an internal investigation into who leaked the information that may have influenced the presidential primaries.
Kiran?
CHETRY: That's unbelievable. All the drama even spilling up north.
Well, we're tracking extreme weather for you this morning. Thunderstorms with gusts of 97 miles an hour ripping through an airfield. This is in Stewart, Florida. And some damage, more than a dozen planes severely damaged. One hangar door was torn off. Another was crumpled. No one was hurt, though.
In North Texas, a winter storm system dumped up to nine inches of snow. Schools, businesses, as well as government offices in Dallas Fort Worth closed early.
And it was sleet as well as blowing snow that caused hundreds of flight delays also at the Dallas Fort Worth International Airport. They were canceled. Bonnie Schneider is in for Rob Marciano this morning tracking severe weather.
Are we going to sort of see a ripple effect today as well in terms of airports?
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CHETRY: Well, it's been a hotly contested question. Is there a link between childhood vaccines and autism? Well, for the first time, a court is saying that in one case, there was. And this morning, we're hearing from the family at the center of the case.
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UNIDENTIFIED MALE: She got very sick shortly after a series of vaccinations that she received at about 19 months old. And after that rather acute illness, she never was the same again.
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CHETRY: Well, is this an exception or a precedent? The family speaks exclusively to CNN's "LARRY KING." We're also talking about it with Dr. Gupta and we're asking you to weigh in this morning. That's our "Quick Vote" question at cnn.com/am.
Also ahead, a shocking incident caught on tape. A mom spraying her toddler with a high-pressure hose at a gas station. She called it punishment, but the law calls it child abuse. Legal analyst Sunny Hostin is coming up with our "Legal Brief," next on AMERICAN MORNING.
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ROBERTS: It's 14 minutes now to the top of the hour. The family at the center of an unprecedented settlement over vaccines and autism say they feel vindicated by a government settlement.
The parents of 9-year-old Hannah Poling spoke exclusively to CNN's "LARRY KING." They said they are happy to be compensated because Hannah developed autism-like symptoms after vaccinations. But they also said they were worried that it could send the wrong message.
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UNIDENTIFIED MALE: I'm certainly not anti-vaccine. I think vaccines are, you know, one of the most important medical developments within the past century plus. What we're trying to say and the theory of what we felt happen to our daughter, Hannah, is that she has a susceptibility to injury from stress of vaccination. (END VIDEO CLIP)
ROBERTS: Federal health officials conceded the vaccines worsened a disorder Hannah had, but said there is no evidence that vaccines cause autism. No direct link. The family will be paid from a federal fund set up to compensate people injured by vaccination. And our Dr. Sanjay Gupta is going to be along with more on this, coming up at the top of the hour.
But it brings us to this morning's "Quick Vote". Do you believe that there is a connection between childhood vaccines and autism? Here's the results. Right now, 71 percent of you say yes, you believe there is. 29 percent say no. Cast your vote at cnn.com/am and we'll tally your votes throughout the morning.
So obviously, Kiran, the majority of people out there think that there is still something missing in this research.
CHETRY: That's right. And it was that that movement really that got one of those additives that contains mercury out of most childhood vaccines. We're going to talk to Sanjay Gupta about that as well, coming up a little later. Thanks, John.
Well, meantime, some disturbing images captured on a surveillance camera. This was inside an Orlando, Florida car wash. And it shows a woman spraying her little girl with a high-pressure hose. She says she was doing it as punishment because the girl was having a tantrum.
Well, joining us now to discuss the incident is AMERICAN MORNING's legal analyst Sunny Hostin.
Once again, an example of something caught on tape that then led to the possibility or at least an investigation into potential child abuse. The manager of this car wash says that the water comes out of that hose at about 1200 pounds per square inch.
SUNNY HOSTIN, CNN CORRESPONDENT: Right.
CHETRY: That it's strong enough to actually peel your skin.
HOSTIN: Sure.
CHETRY: Police said the young girl had no physical injuries, but is this a case of child abuse? And if so, what happens to the mother?
HOSTIN: And Kiran, I think it's such a clear case of child abuse. As you know, I've tried this type of cases. I've prosecuted child abuse cases. I've prosecuted child sex crimes. There is just no question. Just a quick look at the tape shows her grabbing the child, which is assaultive behavior, battery, and then pointing this spray washer at her.
Spray washers are supposed to be used on cars, dirty cars, not children. I think it's such a clear, clear case. And one thing I used to always say when I was a prosecutor doing these types of cases, what you cannot do to an adult, you certainly can't do to a child. Kiran, if you're upset with your husband or upset with your friend, can you take her or him to the car wash and hose him or her down? Of course not. Because one, they would fight you. They would turn on you. And the other thing is, you'd be prosecuted and put in jail for assault. And so really, that is the litmus test. Things that you cannot do to an adult, you certainly can't do to a child. It's clear.
CHETRY: Is there something going on behind the scenes with this situation? Because this happened February 24th. Investigators -- apparently, she turned herself in after this tape surfaced. But they haven't filed any charges yet. Are they waiting to talk to the family to do some background research about the history of this family?
HOSTIN: Well, they're investigating -- and typically, Kiran, when there's a child abuse charge or this sort of investigation, it's a multi-disciplinary investigation. So you have child protective services involved. You have the police department involved. You have the prosecutor's office involved. And so they're all working together to try to figure out what's in the best interests of the child, and that is what the standard is, what is in the best interest of the child. I think what's also interesting, Kiran, is that she's five months pregnant.
CHETRY: Yes.
HOSTIN: And so, one of the questions is going to be what happens? Certainly, it's possible that that child could be taken away from her. It's possible that she definitely needs parenting classes.
CHETRY: Right.
HOSTIN: But what is in the best interest of the unborn child and also this child.
CHETRY: And quickly, the other question also is, you have an expertise in this because you used to prosecute these types of cases. What is the average person do when they witness something? They're only catching a snippet of a situation between a parent and child? What is recommended that you do if you see something like this?
HOSTIN: You know, there's sort of this innocent bystander rule and you don't have to report. But I would urge, I would urge all the viewers, if you see something like this that is so clear cut or something that makes you squeamish, there are hotlines all over the country in every single state that you can call to protect children.
You can call the police. You can speak to another person. Call the hotline. But do something if you see something like this. Kudos to the attendant that watched the video and turned it over. I mean, she did not have to do that.
There are certain professionals that do have to report, like teachers, like police officers, medical professionals. They have to report suspected cases of child abuse. But if you see something like this, viewers, please, please, call a hotline, do something. CHETRY: All right. That turns your stomach to see that video, for sure. Sunny, thanks.
HOSTIN: Thank you.
CHETRY: John?
ROBERTS: I got some breaking news this morning. A tornado watch has been issued for northern Florida and southeastern Georgia this morning, valid until noon Eastern. We'll have details on that coming up.
We've also got new details just coming in on the Times Square bombing. Our Kate Bolduan is live from Capitol Hill, coming up next on AMERICAN MORNING.
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ROBERTS: 54 minutes after the hour. And some new information just in to CNN this morning on that bombing in New York's Times Square. The investigation is expanding. Surveillance video of the bombing shows a person riding up to the Army recruiting station on a bicycle and then a flash and a cloud of white smoke in the heart of New York City.
Hours later, police say letters arrived on Capitol Hill. Letters with pictures of that recruiting station and the words "we did it." CNN's Kate Bolduan is live on Capitol Hill. She's got brand new details.
What do you got for us this morning, Kate?
KATE BOLDUAN, CNN CORRESPONDENT: A couple things to update us on, some new information. And this is coming from the law enforcement sources who said that they are revisiting an incident that occurred at the New York State U.S.-Canadian border earlier this month.
The law enforcement source says that at least three people were stopped at the border crossing and were being questioned. But before the interviews were fully completed, one or more of these people left the border crossing. And when they left, they left behind a backpack that the source says contained a photo of New York's Times Square.
Now, at the time, the border patrol didn't have any information that these people involved had any suspicious background. And the source stresses that there is no conclusive evidence linking this incident to the New York Times Square bombing. But they say in light of all the developments recently that they thought it would be prudent to return and take another look at that case.
Now, meanwhile, here on Capitol Hill, we have some new information regarding the letters that were sent here yesterday. A law enforcement source says that that person of interest the FBI was interviewing in Los Angeles, they say, quote, "He's not involved in the New York bombing." He was being interviewed in connection with these letters that were sent to Capitol Hill. But this law enforcement source says that is, quote, "An ugly coincidence, a bizarre case." The person had sent the letters to Capitol Hill in opposition to the war. And so the investigation into these letters, they say is now basically closed and there is no connection between these letters and the New York case.
So, John, you really called it that this is a bizarre coincidence.
ROBERTS: All right, but a lot of other leads that they're pursuing. And Kate, we'll hear more from you, coming up on that. Kate, thanks very much.
Stay with us because New York City Police Commissioner Ray Kelly is going to be joining us live at 7:15 Eastern. We'll put the question to him as to where this investigation is going.
We're also following important breaking news this morning. A tornado watch in effect in northern Florida and southeastern Georgia. There you can see that band of very rough weather moving in through the big bend area there in Florida and on into southeastern Georgia.
We'll be following that very closely. Bonnie Schneider is getting up to speed on this and we'll have more for you, coming up next on AMERICAN MORNING. Stay with us.
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ROBERTS: Hit-and-run. New clues in the attack on Times Square today. The NYPD's top cop joins us live.
Fear of flying. Southwest Airlines under fire. We talk live with Southwest's CEO.
And CNN exclusive. The parents who say vaccines transformed their little girl. The emotional debate over autism reignites on this AMERICAN MORNING.
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