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American Morning
Oil Surge to $110.35; Gas Price Record; Secret Meeting on Capitol Hill; Spitzer Scandal: Fed Looking at Federal Funds
Aired March 14, 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: Looking forward to the weekend coming up just ahead, but a lot of business to get through for you this morning.
KIRAN CHETRY, CNN ANCHOR: That's right. And a lot of financial news to talk about. Everywhere you look, really, reminders about how it's getting more expensive to live, to raise your kids.
Breaking news this morning about gas prices. Well, they've cracked another record. According to AAA, the national average is now $2.28 a gallon.
ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: $3.28.
CHETRY: Sorry, $3.28. I was going to say, that would be another record. Right, Ali?
VELSHI: Yes.
CHETRY: It was wishful thinking on my part. $3.28 a gallon. The price of oil also on a record, climbing all week, settling over $110 a barrel. And that means the price of gas is also sure to head higher. The question is when this morning. We have a look at the gas prices from around the country.
There is New York City. Regular unleaded going for $3.49 a gallon. For ultra, $3.75. Not much cheaper in Ann Arbor, Michigan, where regular is going for $3.39 a gallon there, and silver grade $3.49 a gallon in there. I saw it. I thought there was a $4.05.
(CROSSTALK)
ROBERTS: There's a $4.05
VELSHI: That was for diesel. Yes.
CHETRY: For diesel fuel. In Dallas, Texas, regular unleaded at $3.19 a gallon, and super unleaded $3.42.
Well, we're listening to Americans who told us this election season that the economy is the number one issue. And CNN's money team is covering every angle to help you make sense of those new records and also what they mean for you. We begin with Ali Velshi and the talk of oil hitting another record.
VELSHI: Yes. CHETRY: Seeing gas prices on the rise. What's the end game here as we keep talking about this week after week?
VELSHI: Well, you know, you just mentioned that diesel because you saw that $4.05. And we should be as worried about diesel as we are about the gas we put in our cars because everything that gets to this country, you know, to our stores gets there in a truck. And those truckers are really feeling the pinch. Many of this country's truckers are independent owner-operators.
Now, as we've seen the price of oil go up, we've seen a few other things happen in the economy. We've also seen the price of gold hit $1,000 yesterday, and we've seen that dollar continue to sink. Now, there is some discussion about the fact that as the dollar sinks, oil gets more expensive. John has brought this up many times. Why? Because oil is sold in dollars all over the world, so if I am paying you for something in a currency that is becoming worth less and less, the only way I can make up the difference is if the actual product goes up.
So take a look at the red line there. That is the U.S. dollar compared to six other currencies. It has been going down. The green line is crude oil. It's been going up, so that correlation does definitely exist. As the dollar continues to sink, oil prices continue to go up.
Now, how do you save the dollar? Typically, you raise interest rates, except the Fed is not going to be raising interest rates any time soon. They're meeting on Tuesday. They're probably going to lower interest rates again to goose the economy a little bit, so that's a big problem.
Take a look at where that dollar is against major currencies right now. About $1.56 against the euro was a little bit lower than that, in fact. So it's strengthened just a bit. $1.56 to buy a euro. $2.03 to buy a pound, and $1.02 to buy a Canadian dollar. The dollar has also weakened against the yen.
So these problems are all interlaced, and it's part of a problem for the president and for presidential candidates because they can't really say much more than I feel your pain. There's not a policy tool that they can use to get the dollar up and get the oil down.
ROBERTS: I'm surprised that we haven't heard more about gas prices on the campaign trail. Typically, when they start to go up like --
(CROSSTALK)
VELSHI: Because what can they say?
ROBERTS: Well, you know, in years past, 2004 and 2000 they said a lot.
VELSHI: Yes.
ROBERTS: Did nothing, but said a lot.
CHETRY: And, again, today we're going to talk more about whether or not drilling in Alaska, which is a plan that some really advocate, and others are highly against coming up to the table again in Washington.
ROBERTS: Yes. Ali, thanks.
VELSHI: OK.
ROBERTS: A lot of bad news this morning.
President Bush will be talking about the number one issue for Americans, the economy, in a speech in New York today. His deputy press secretary tells CNN that the president will say that the economy is headed toward a period of slow growth, and that he has a plan to turn it around. The White House is also talking about ways to prevent another mortgage meltdown, including a national licensing standard for mortgage brokers. It would require lenders to be more open with home buyers about payment terms, and make regulators take a closer look at how banks manage risk. Critics say the plan is coming too late and also does nothing to ease the current mortgage crunch.
Meantime, breaking overnight. Congress agrees on a $3 trillion budget plan for the fiscal year 2009. The Senate voted to roll back most of President Bush's tax cuts, keeping some low -- keeping some, though, for low and middle income families. The presidential candidates were on hand to vote. They also traded jabs back and forth. Senator Barack Obama took Senator John McCain to task for reversing his stance on the tax cuts once he became a presidential candidate. He was initially against them. Now, he's for them.
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: He made a decision to reverse himself on that. That was how I guess you got your ticket punched to be the Republican nominee. But he was right then, and he is wrong now.
SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: And particularly at this time of economic challenges, he wants to raise their taxes and take more of your income. We'll have that debate. I'll look forward to it.
ROBERTS: A bill to ban earmarks for one year, by the way, was soundly defeated in the Senate. Hillary Clinton and Barack Obama voted with McCain for the ban. Earmarks are those funds that members of Congress tack on the bills to pay for projects in their home states.
Obama released his earmarks, $740 million in spending requests, including $1 million for a hospital where his wife Michelle works. The Obama camp is challenging the Clinton campaign to release its earmark requests. John McCain is firmly against all earmarks.
And later on today, the House is expected to vote on a measure backed by Democrats to overhaul the Foreign Intelligence Surveillance Act, better known as FISA. President Bush is threatening a veto because the proposal does not provide immunity to telecommunications companies who participated in the government's wiretapping program. Last night, House Republicans succeeded in delaying the vote by a day because of a request to meet in secret to discuss the measure. Meeting in secret.
Joining us now from Capitol Hill to talk more about this rare closed-door session is our Kate Bolduan. Kate, it's the first time since 1983 that Congress has met behind closed doors. Why all the secrecy last night?
KATE BOLDUAN, CNN CORRESPONDENT: You know, John, it has been quite a while, and it has to do with classified information. Twenty- five years since the last closed session that time, the debate was over military operations in Nicaragua. This time, of course, as you mentioned, it has the debate over FISA. Now, House rules prohibit that any member just talking about the issues discussed in this closed session, so we didn't know exactly what happened inside, but we do know that the meeting, the session was requested by a Republican minority whip, Roy Blunt. He said basically that there's classified information that has to do with FISA that he believes is very important that all members are privy to before they have this very important vote. And he did talk about this a little bit more on the House floor before heading into the meeting last night.
(BEGIN VIDEO CLIP)
REP. ROY BLUNT (R), MISSOURI: I just think this provides for a fuller moment for the members to think about, talk about, and discuss some specific information at the secret level that, otherwise, would not have a chance to be discussed before we move forward to this vote tomorrow. (END VIDEO CLIP)
BOLDUAN: Now, while most Democrats did eventually agree to the session, there was some debate, and there was some objection by some Democrats saying, basically they were just questioning this move saying, well, this looks just to be like a political ploy to delay vote, which it indeed, actually did do. Now, Congressman Dennis Kucinich of Ohio, he was one of the members that spoke out last night. Listen to him.
(BEGIN VIDEO CLIP)
REP. DENNIS KUCINICH (D), OHIO: There are some of us here who feel that this country has drifted towards aversion of a national security state. When the House begins to meet in secret on matters that relate to security prior to legislative acts, it raises questions about the constitution of the United States.
(END VIDEO CLIP)
BOLDUAN: Now, it's important to note that Congressman Roy Blunt, he did say that this is not new classified information that he once provided to members. This information had been provided to key committees, the Judiciary and the Intelligence Committee, but he said with this vote being so important, that he wanted this information out to all of the members before the vote which, as you mentioned, John, is expected to happen a little bit today. But Democrats and critics, though, just questioning the timing of this session.
ROBERTS: Kate Bolduan for us this morning on Capitol Hill. Kate, thanks very much -- Kiran.
BOLDUAN: Of course, John.
CHETRY: Well, this morning, federal prosecutors are looking into whether Eliot Spitzer used campaign funds in any of his visits with escorts. According to "The New York Times," the feds are focusing on hotel and travel arrangements for three trips that Spitzer made over the past several months, including that meeting at the Mayflower Hotel in Washington the night before Valentine's Day. Now, if campaign money was involved, it could open the door for a criminal case against Spitzer. It is illegal for politicians to use campaign money for personal expenses. According to "The Times," lawyers for Spitzer met with prosecutors today.
Also, the man who will take Spitzer's place is getting a crash course in the down and dirty business of budget negotiations. David Paterson says he hasn't been very involved in the process, but will spend the weekend getting up to speed, and he'll be ready when he officially takes office on Monday.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: The love of my family, the faith --
LIEUTENANT GOVERNOR DAVID PATERSON (D), NEW YORK: In the way that most people have, in the way that most people would want, but I made a commitment when I gave my word to Governor Spitzer in January 2006, when I left as a Democratic Senate leader to be his running mate, that I would be prepared if an event I had to assume authority. I am prepared, and on Monday at 1:00 p.m., I will have the oath of office administered to me in the assembly chamber.
(END VIDEO CLIP)
CHETRY: Getting a budget deal is an annual fight in Albany, and this year could be particularly tough because the state faces a $4 billion deficit. We're going to have much more on how Paterson has overcome adversity, coming up at 7:50 as part of our "Uncovering America" series.
ROBERTS: It's coming up now just about 10 minutes after the hour. Our Veronica de la Cruz here now with other stories new this morning. Good morning to you.
VERONICA DE LA CRUZ, CNN INTERNET CORRESPONDENT: Hey, good morning, John, Kiran. Nice to see both of you. And good morning to all of you out there.
Here's what new this morning. It looks like Michigan is shooting for a redo on June 3rd for its Democratic primary. Party officials are hoping to reach an agreement today. Michigan democrats negotiated with the Clinton and Obama campaigns that any plan would also need approval from the DNC, the state party leaders and the governor. The primary is expected to cost about $10 million which would be paid for with private money.
But things not going as smoothly in Florida. Florida democrats are proposing a mail-in redo for the state's primary, even though it's unlikely to get approved. The revote would cost between $10 million and $12 million, but an even bigger obstacle is getting the national party, the presidential candidates, and the state's leaders to agree to it. Members of Florida's congressional delegation are still against any do over.
Well, early this morning two astronauts completed a space walk. It was the first spacewalk of Endeavour's space station mission. They started building a giant robot, despite the problem of getting power to it. NASA is confident it can fix that problem. Four other spacewalks are planned over the next two weeks. Two of them focused on assembling that robot.
The IRS has released this year's list of the biggest scams, and phishing is at the top. The Internet-based scam is designed to trick people into revealing confidential information like passwords or account numbers, usually on fake web sites made to look legit. The IRS also says scammers are posing as IRS employees who ask for personal information before giving out this year's tax rebates. Already this year, 33,000 phishing scam e-mails have been forwarded to the IRS.
And one of the most published stories to tell you about on CNN.com. right now. Forget computers. Some of your favorite tech gadgets from iPods to GPS navigation systems could be infected with a virus. An "Associated Press" review says in most cases, shoddy quality checks in Chinese factories are to blame as opposed to an organized effort by hackers. Experts say the best way to protect yourself is to get up-to-date anti-virus software.
And finally, first, it was snakes. Now, it is mice on an airplane? Delta Flight 4704 at Iowa's Des Moines Airport was delayed for more than five hours yesterday all because of a little mouse.
The word on the tarmac was a flight attendant was too freaked out to fly, but the airline says the crew was worried the furry fellow might chew through wires. They tried to lure it out with peanut butter. The plane eventually took off, but some passengers missed their connections. Delta wouldn't say whether or not that mouse was caught. Five hours. Five hours.
ROBERTS: Another reason -- another reason to love those regional airlines.
DE LA CRUZ: You know, a lot of those people were all set for spring break. Spring breakers missing their connections to the island for a mouse. Bad though for a mouse.
(CROSSTALK)
CHETRY: Could chew through the wires, though.
DE LA CRUZ: I think the problem was the mouse didn't have a ticket.
CHETRY: That's right.
DE LA CRUZ: Unticketed passenger on the plane. Yes.
ROBERTS: All right. Thanks, Veronica.
Talking now to school. A new Web site that is spreading campus rumors to millions of people and ruining a lot of reputations. Is it legal? That's the big question.
And the feds are reportedly examining Eliot Spitzer's campaign money. Did he use any of it to fund his encounters? Our legal analyst Sunny Hostin weighs in on possible criminal charges. That's ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
CHETRY: Well, it looks like actor and comedian Billy Crystal may want to keep his day job. But hey, a guy can dream and it certainly was his dream yesterday. He played in a pre-season game for the Yankees. He got a standing ovation when he walked to the plate. He made contact with one pitch, bouncing it foul toward first base. But then Crystal swung and missed two fast balls, striking out in his first and only league -- a big league at that.
That's all right. He didn't play the field. He didn't get to come up again. But, you know what, he got to do something that is a dream for many. He turned 60. He was feeling a little blue about the milestone, so Derek Jeter got the wheels in motion for him to suit up in the pinstripes for a day and fulfill a lifelong dream. Crystal called the experience the strangest and greatest moment of his life.
And we know someone right here on AMERICAN MORNING who probably wishes he had a chance to do that as well. Can't you just call Derek Jeter and say, hey.
ROB MARCIANO, CNN METEOROLOGIST: Yes, I just picked up the phone.
CHETRY: A huge Yankee fan.
MARCIANO: It pays to have connections, doesn't it? You know, that swing doesn't look too bad. You see that?
CHETRY: You got to give him credit. Can you imagine trying to hit back one of those pitches?
MARCIANO: No. I think they probably let up on him a little bit. Anyway, congratulations to him, and happy birthday. That's not a bad 60-year-old present. Good morning, Kiran. Good morning, everybody. I want to show what's going on weather-wise. We do have some action across the mid south today. Severe thunderstorm watch was in effect until a little about 10 minutes ago. This little -- this little guy right here has just been allowed to expire.
A little bit closer, though, into this area, Memphis seeing some showers and storms. Some of these storms have had the capability to produce nickel to quarter size hail and winds gusting to 60 miles an hour. They're moving eastwardly quite rapidly. So living in Nashville, you're about to get some showers and storms there, and they'll continue to push off to the east.
Back to the west, another pulse of energy rolling into the intermountain west. This is all snow at the higher elevations and winter storm warnings have been posted for much of the Colorado Rockies. One to two feet of fresh powder expected to fall during the day today. Of course, it will be winds at the higher elevations. So avalanche danger will be on the increase as we start to wind load and snow load some of those higher peaks.
Back to the Ohio River Valley, this is all rain for you folks. Thank goodness. You're trying to shake winter, but, guess what, you'll probably see some more wintry precipitation tomorrow. And in New York and metropolitan area, right now things are pretty light, but you'll probably see the rains increase later on today. Tonight looks to be a fairly wet Friday night across the Big Apple.
Spring training. What's today? What is today? Middle of March. So, we -- well, opening day right around the corner. I'm sure Billy Crystal will be in the stands there in the Bronx. Kiran, back up to you.
CHETRY: I can't believe you don't have it on your calendar.
MARCIANO: I know. I should. I'm ashamed of myself.
CHETRY: All right.
MARCIANO: I can barely know what today is.
CHETRY: It's Friday. That's all you need to know. I'm sure you'll be getting up here all spring, right? You'll find a way to be here in person for some reason, especially when the Yankees are playing.
(CROSSTALK)
MARCIANO: Absolutely.
CHETRY: All right, Rob.
MARCIANO: I'd love to.
CHETRY: Thanks.
MARCIANO: See you.
ROBERTS: Why would you throw Billy Crystal a fast ball, too? What about a nice high hanging curve? You don't want him to get a hit.
As if his fall from grace isn't enough over that sex scandal, New York's soon to be ex-governor Eliot Spitzer has a legal cloud hanging over him this morning. Federal prosecutors reportedly looking into whether he used public money to arrange meetings with prostitutes. Could Spitzer end up in jail?
Our American morning legal analyst Sunny Hostin joins us now. I mean, is he really in legal jeopardy here, or are people just, like, looking under every rock?
SUNNY HOSTIN, AMERICAN MORNING LEGAL ANALYST: I think it's pretty clear, John, that he is in legal jeopardy, and you know I've been saying this from the very beginning. I don't see how he gets a pass here. This is the Bush administration appointee at the U.S. attorney's office in the southern district. He's rung all the bells for the prosecutor. If he were the prosecutor, he'd be charging someone.
We're hearing a lot of things about people saying well, Johns are never prosecuted. That is not true. Johns are sometimes prosecuted.
ROBERTS: But they are. Aren't they usually prosecuted if they're caught up in a sting operation which is usually used as sort of clean up the streets in the neighborhood? You know if somebody is engaging in prostitution at this level, how often are they prosecuted?
HOSTIN: You know, at this level you usually don't see it, John. We're talking about the former New York attorney general. We're talking about the governor of New York. We're talking about a high profile figure that not only just has sex with a prostitute. We're talking about someone that moved monies around in small amounts, trying to hide them. He wired monies into shell accounts.
He, by some accounts, may have used -- I'm not hearing anything about the governor using public funds because we know that he is a wealthy man, but what I am hearing is that it's possible that he used government resources. If his security detail had anything to do with this, if he used his car to drive these women around, now, you're also talking about public corruption, and that's something that prosecutors are looking at.
ROBERTS: According to the complaint, -- according to the complaint, though, there's no evidence of that. I mean, it really traces Kristen's movements, and he paid for the train. She took the train. She made her way to the hotel.
HOSTIN: That's right.
ROBERTS: It seemed.
HOSTIN: But that's according to this particular complaint and that particular affidavit. This investigation is --
ROBERTS: And that particular incident.
HOSTIN: That's right. This investigation is ongoing. That was one incident. Now, we're learning that this is not the first time that the governor met with a prostitute. We're talking about eight times, and prosecutors are really looking into this.
ROBERTS: There's also an idea being floated about deferred prosecution where he admits to some sort of crime, but then isn't prosecuted. How does that work?
HOSTIN: Sure. You know, prosecutors do have that in their arsenal, and I've given that option. And it sometimes happens when you have maybe a low level person, someone first time offender.
ROBERTS: Yes.
HOSTIN: You really -- it's up to the prosecutor to do that. Again, I don't see how he gets a pass here. That's something that's not really used that often.
ROBERTS: But is the greater crime here hypocrisy?
HOSTIN: Well, certainly hypocrisy is not a crime, but we know that he is guilty of that, guilty as charged. But I think, again, he has rung all the bells for prosecutors, John. He's moved money around. He's met with prostitutes. He may have used government resources. I don't see how the governor gets a pass here.
ROBERTS: All right. Well, we'll see. Sunny Hostin, good to talk to you this morning. Thanks for the expertise and the analysis -- Kiran.
CHETRY: We're also going do have Sunny weigh in on this coming up in a few minutes. It's disturbing video. It was a nanny caught on tape. There you see it. Shaking a baby under 6 months old. How the parents turn the camera on the nanny. What punishment will she be facing?
Also, the juicy details a Web site where college kids can spill anything they want about their fellow classmates posted on-line, whether or not a reputation is ruined. Doesn't seem to be the concern, but is there a legal line that's been crossed? That's ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
ROBERTS: Welcome back to the "Most News in the Morning" here on CNN. Time for our "Hot Shot," and we're going to pour cold water all over our "Hot Shot" today.
Take a look at this. Amateur video of a freak wave, 20 feet tall crashing over a beach roll and on to a road in La Coruna, Spain. Take a look at this coming up here. Watch. Watch it. Over the break wall. Through the hedge. On to the roadway. Look at these cars getting washed away here. Nobody was hurt, thankfully. Some cars washed away. It was all part of a storm system that also hit Britain and France earlier this week.
CHETRY: It's like a tsunami. I mean, that was the type of thing that you see when a tsunami hits.
ROBERTS: Thankfully, though, unlike a tsunami, which is a huge swell of water, this was just a rogue wave. So it was one time. Splashed over everybody, got everybody a little bit wet. But again, not a whole lot of damage, and thankfully nobody hurt.
CHETRY: They've got some rough weather in that part of the world lately. We saw another one where the wave came over (ph) a lighthouse.
ROBERTS: Yes. If you got a "Hot Shot," send it to us. Head to our Web site, CNN.com/am and follow the "Hot Shot" link.
CHETRY: Yes. We love to see video like that. Pretty amazing.
ROBERTS: Yes.
CHETRY: Also, much more than just catty comments. These are hurtful, even racist accusations that are being posted anonymously about students on a Web site called juicycampus.com. College students across the country have it in their favorites.
Our American morning legal analyst Sunny Hostin has been looking into this. She spoke to one student who says she was so humiliated by what was posted about her that she couldn't even show her face.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: I was really upset, and I called my parents, and very late at night. And I cried a lot, and I lost a lot of weight, and I was very, very emotionally stressed.
(END VIDEO CLIP)
CHETRY: The laws may protect this Web site more than the victims. In fact, Sunny Hostin joins us in the next hour of AMERICAN MORNING with more on what the legal options are for people who say their lives have been ruined.
It brings us to this morning's "Quick Vote" question. Should you be able to sue a Web site that allows people to post lies about you? Cast your vote CNN.com/am. We're going to get the first tally of votes later this hour.
You know, we ask it like that because there are places like Craig's list and other places that are just sort of on-line bulletin boards that say, hey, we're not responsible for the content, but we can't patrol everything that comes on to our site. All we are is the clearinghouse where people throw things on there. ROBERTS: Yes. But certainly if that was published in a newspaper or some other type of publication, they would be -- there would be exposure to libel. So why does the Internet get away with things? We're asking you this morning, and we'll check with out with our Sunny Hostin as well.
A surprise serenade by President Bush lands on YouTube. The president caught singing a spoof of "The Green, Green Grass of Home" Saturday night at the Gridiron's Club's annual dinner. Listen to this.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: You know, Dick Cheney strolling with documents he's been withholding. It's good to touch the brown, brown grass of home. Yes, you're all going to miss me, the way you used to diss me. But soon I'll touch the brown, brown, grass of home.
(END VIDEO CLIP)
ROBERTS: The footage grainy there from somebody's cell phone. You got to remember somebody out in the crowd is going to hit one of those going. The Gridiron is Washington oldest club for journalist. The annual dinner features lots of skits, but, you know, there's never been any kind of video leaking out from that because they don't like to publish that whole thing. But it seems the president is no stranger to performing, certainly.
Just last week, he was caught on tape at the White House doing a short tap dancing routine while waiting to announce his support for John McCain. Shuffling the feet back and forth there. Of course, Kiran, he has done lots of other dance routines as well, right?
CHETRY: Oh, this is my favorite. I mean, is this it? The one where he was getting his groove on for Malaria Awareness Day. There he is. He almost looks like -- do you remember when we could put our own faces over the video of all the dancing?
ROBERTS: Yes.
CHETRY: That was sort of the body movements there, but he was doing a pretty good job even, you know --
ROBERTS: He was having a lot of fun.
CHETRY: There he is. Freestyling on the drums.
ROBERTS: Of course, in his recent trip to Africa, he got renewed as well. This was just a warm up.
CHETRY: There's poor Laura Bush on the side going, why am I being forced to dance right now.
ROBERTS: Presidents always tend to cut loose in their last year in the White House. CHETRY: That's right.
ROBERTS: Although that one was last year, so he got an early start.
CHETRY: Well, we're watching the "Most News in the Morning." What goes up can go even higher. In fact, we're talking gas prices, and $3.49 for regular in New York. The national average also hitting a new record overnight. What you need to know before you hit the road.
Also, watching the nanny. Who's watching your baby? There are some new nanny cam videos emerging overnight. A nanny caught on tape shaking a 5-month-old baby. A closer look at the case and the punishment she faces. Today's headlines when AMERICAN MORNING returns.
(COMMERCIAL BREAK)
JOHN ROBERTS, CNN ANCHOR: Good morning and welcome back to AMERICAN MORNING. Thanks for being with us on this Friday. It's the 14th of March. The Ides of March just a day away. Are you making plans?
KIRAN CHETRY, CNN ANCHOR: That's right.
ROBERTS: Sharpening the knives.
CHETRY: No, of course not. I'm going to pick a good St. Patrick's Day menu though, you know.
ROBERTS: I'm spending St. Patrick's Day in Costa Rica. So, we'll see how they do it.
CHETRY: That's going to be wonderful. John is getting a little R and R. I wonder how they celebrate St. Patrick's Day in Costa Rica. That should be interesting.
ROBERTS: I don't think they do.
CHETRY: File an I-report.
ROBERTS: Although, a couple of friends of mine who are Irish will be there, so maybe I'll join up with them for a couple of pints.
CHETRY: And we're also joining up this morning with news about not only gas prices, but oil hitting an all-time high. Foreclosure mess and some news about inflation as well.
ROBERTS: Another record this morning. Breaking news overnight on the price of gasoline. Take a look at this. A look at the AMERICAN MORNING gas gauge shows the highest national average ever. $3.28 a gallon. Last month, it was just $2.97. And a year ago $2.55.
CNNmoney.com correspondent Poppy Harlow is live at a gas station here in New York this morning. Poppy, what are you seeing there?
POPPY HARLOW, CNN CORRESPONDENT: We're seeing gas prices at $3.49 a gallon. That is for a gallon of regular unleaded. Keep in mind that people that fill up here are a lot of taxi drivers and a lot of those are couriers that delivery van drivers. They have no choice but to fill up here. They have to pay the price. I just talked to the cashier inside. He said he had a bill for someone yesterday $108 to fill up their 15-passenger van.
He said SUVs are well over $100 now to fill up. So, just really record prices that we're seeing here. And another interesting note. He said, a lot of people are now coming to this station right in midtown Manhattan and putting about $5 worth of gas in. That's enough to get them through the Lincoln Tunnel over to New Jersey where they can fill up for about $3 a gallon. So, big savings right across the river.
John?
ROBERTS: Yes. I think New Jersey has got the cheapest gas in the nation, or typically does, or very close to it. Are people there that you are talking to as they fill up, are they having to change their spending habits now so that they've got more money to put gas in their cars?
HARLOW: Yes. You know, he said it's not a choice for these people. As I said, there are a lot of cab drivers. They have to fill up. But he said a lot of them are just filling up halfway, their tank about half way, hoping maybe the price will go down over the next few days or so, but that certainly has not happened at all. So people definitely pulling back.
But when your business depends on it, you have to fill up your cab or your van here, and he said people are still coming and doing that.
ROBERTS: Yes, absolutely. And no indication that the price of gas is going to go down any time soon. Poppy Harlow for us out there this morning. Checking on the price of gas. Poppy, thanks.
CHETRY: Price of gas. Now to the price of oil. Oil prices trading at a record $110 a barrel right now.
Renewing debate in Congress over drilling in the Arctic National Wildlife Refuge in Alaska. The state senator is introducing legislation that would open up that refuge if the price of crude oil hits $125 a barrel for five days straight. Again, as we said, right now we're just above $110 a barrel. So it doesn't seem like a terribly unlikely scenario at this point.
The bill says it's time to reconsider arctic drilling because the need for domestic production is greater than ever.
Well, with rising energy prices, the declining dollar and a meltdown in the mortgage market, the economy is definitely issue number one for Americans. All next week on CNN, we'll have information about your savings account, your debt, your mortgage, and your job, and don't miss it. "ISSUE #1," there it is, at noon Eastern. All next week right here on CNN.
You know, one of the big campaign issues taking a hit overnight, the Senate finally defeated a bill that would ban earmarks for one year. The ban was the centerpiece of John McCain's agenda. Earmarks are funds, money that members of Congress tack on to bills that pay for special projects in their home state. And McCain vowed he would not drop the issue.
(BEGIN VIDEO CLIP)
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: We will continue to take our fight to the American people. I will have every town hall across this country talk about earmark and pork barrel spending.
I'll make it clear what $35 billion in earmark pork barrel projects last year meant to the American people, which is $1,000 tax credit for every child in America. And Americans want $1,000 tax credit for each of their children and not a $233 million bridge to nowhere in Alaska.
(END VIDEO CLIP)
CHETRY: Well, McCain pressed his Democratic opponents to reveal their earmark requests. John McCain himself has taken no earmarks. I believe he's only one of three senators not tacking any earmark on to bills.
ROBERTS: One he took back in 1992 or something.
CHETRY: Well, Obama revealed that he secured $98 million in funding for his home state. A budget watchdog group says Senator Clinton secured $342 million of earmarks for New York State.
Last night's vote was a rare chance to see all three presidential candidates on the Senate floor. There was Hillary Clinton, Barack Obama. They put aside their differences and their campaign attacks to share a moment together between votes. There you see the two of them.
Sources say they were huddled together for three or four minutes and that they were all smiles. Of course, John McCain, as we just saw, was also -- presumptive GOP nominee there on the floor of the Senate as well.
ROBERTS: Also new this morning, federal prosecutors are reportedly investigating whether Eliot Spitzer used campaign funds for any of his encounters with escorts.
"The New York Times" is reporting that the Feds are looking at hotel and travel arrangements for three trips that Spitzer made over the past several months. If campaign money was involved, it could open the door for a criminal case. It's illegal for politicians to use campaign funds for personal expenses. Meanwhile, the suddenly famous call girl at the center of the scandal is getting millions of hits on her MySpace page. Ashley Alexandra Dupre, also know as Kristen, is an aspiring singer. She is reportedly getting offers from adult magazines and look at this. The front cover of "The New York Post" today has photograph of her and there's more inside.
This is apparently photos from her modeling portfolio, so I would expect "The New York Post" may sell a lot of copies today.
$11 million is being given back to a fund for former Enron workers who lost millions in the company's employees stock and 401K plans. Enron workers were paid about $89 million back in 2006. But some people got too much money. Some people got too little. The $11 million comes from Hewitt Associates which was hired to give out the money.
An apology this morning from the head of Southwest Airlines. The Chief Executive Officer Gary Kelli told the "Wall Street Journal" that he is sorry that aircraft inspections were missed. He promised to shake up the procedures for checking out the aircraft.
And progress reported in nuclear talks with North Korea. Christopher Hill, the assistant secretary of state says, it's too soon to say whether the disarmament is back on track. But he did report the progress to other key countries and says the door is open to more discussions.
Kiran?
CHETRY: Certainly sends chills of any parent's spine when you see this video and it is disturbing. It's something that was caught on a nanny camera. The South Carolina family that released this video of their 6-year-old baby sitter shaking their child pleading not guilty to abuse charges.
The tape shows her violently shaking this 5-month-old baby girl. Both parents are attorneys, and they say that they ran a complete background check on the woman. It came up clean. They say that they didn't have any particular reason for putting this tape -- for putting this nanny camera on. They just did it. And were shocked by what they found.
AMERICAN MORNING legal analyst Sunny Hostin is here now with more on this. First of all, what charges is she facing?
SUNNY HOSTIN, CNN CORRESPONDENT: I got to tell you, I'm stunned.
CHETRY: I know.
HOSTIN: I'm looking at this tape, but it's unbelievable. She abused a child, clearly, Kiran. Right now, she's been charged with unlawful neglect of a child, assault and battery of a high and aggravated nature. We see the tape. The viewers can see the tape. I mean, she is clearly shaking the baby. I think the parents have had the baby tested and medically checked, and the baby by all accounts is fine.
But this is a woman who shouldn't ever be next to a child again. And what is shocking, Kiran, is that they did all the right things here. You know, you always recommend do a background check of your nanny. Make sure that you interview several nannies. Check the person's references. These are two attorneys that are parents. They did everything they were supposed to do, and low and behold, this happened to them.
CHETRY: Everybody who, you know, tries to work in a two-parent household where both parents are working. At some point, they're going to need someone to look after their kids.
HOSTIN: Sure.
CHETRY: This background check thing though, I mean, all you are doing is running it to see if they've committed any crime.
HOSTIN: Exactly.
CHETRY: Specifically, saying much about their character or how they are under stress. So it seems to me that just running a background check is certainly not sufficient.
HOSTIN: It's not enough. I think the better thing to do is to try to be home clearly with the nanny for the first couple of weeks if it all possible. I think another thing you can do is check the person's references. You must do that. Go and speak to people. Speak to the potential nanny's family members, prior employers, all that sort of thing.
And then I have to tell you, you know, having a nanny cam does help. There are all sorts of nanny cams. This business is growing and growing because, as you mentioned, there are two-parent households now. You have to protect the children at all cost. And my guess is that this woman will be prosecuted to the full extent of the law. And that she will either be convicted or serve some jail time. But, you know, you have to have to protect children.
CHETRY: It's tough call to you want to show people that you trust them. And you know they are working in your home at the same time.
HOSTIN: Absolutely.
CHETRY: So it's kind of a touchy issue. I'm going to be videotaping you all day long. So good luck with that.
HOSTIN: Yes, very true. But, again, I think the law does allow that sort of thing, and so if you tell your nanny, listen, this is a wired home and in some jurisdictions you don't even have to tell your nanny, but I think it is something in a patient's arsenal and something that should be used. And look what we found here.
CHETRY: Very disturbing to say the least. Thanks, Sunny.
ROBERTS: Well, he compared Barack Obama to Jesus. And wait until you hear what else Obama's pastor has to say.
(BEGIN VIDEO CLIP)
UNIDENTIFIED PASTOR: Barack knows what it means to be a black man living in a country and a culture that is controlled by rich white people.
(END VIDEO CLIP)
ROBERTS: Ahead what the senator has to say about one of his biggest supporters. We've got that for you. And who wins a fight between an eagle and a jaguar? When mascots attack, ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
CHETRY: Mascots going out it again. Welcome back to the most news in the morning. And check this out. It's a fight between Eli the eagle of Oral Roberts University and Indiana University Purdue University-Indianapolis, during a basketball game.
It started as a dance-off and then turned into a fight. Even the cheerleader couldn't break it up. That's what was happening there. He was playing referee for a second. Both mascots were ejected from the game. Eli the Eagle was also relieved of his mascot duties for the rest of the year.
ROBERTS: So, I guess, it looked like, you know, world wrestling there for a little while, like the whole thing was staged. Like right there, right? Come on.
CHETRY: (INAUDIBLE) and they use some mascots face is a smile. You know, since the costume is actually a smile, it does look even stranger.
ROBERTS: But that right there is where it looks like it might be getting serious.
CHETRY: That was an attempt at a pile driver. OK. Why is one booted out for the rest of the year and the other one is not?
ROBERTS: Maybe he started it.
ROB MARCIANO, CNN METEOROLOGIST: That looks more -- it's hilarious to me. What's more ridiculous is to see this big goofy, you know, the smiles and then they're going at it with the jabs and the upper cuts.
CHETRY: Exactly. Like those poor sausages. Where was that? Was that Milwaukee? Those poor sausages that got hit by the baseball player.
MARCIANO: Yes, very nice.
ROBERTS: Rob, what are we looking at in terms of weather today?
Rob?
(WEATHER REPORT)
ROBERTS: All right, Rob. Thanks very much. A story now that caught our eye overnight. Look at this. A tough granny in New Mexico. 83-year-old, Bernie Garcia, was filling up her van at a Santa Fe gas station when a young man asked her for money and then grabbed her purse.
Bernie wouldn't let go and whacked him with the gas nozzle. And when she found out that he was only 20 years old -- he was only 20 years old, she said she would do it again.
(BEGIN VIDEO CLIP)
BERNIE GARCIA, FOUGH OFF ROBBER: How old he was? They look like young punks. Skinny and not even built. I could have taken him any day of the week.
(END VIDEO CLIP)
ROBERTS: That would-be robber hoped in a car. He didn't get too far, though. Within minutes police nabbed the suspect and two other men who are with him. Don't mess with her.
CHETRY: Do not, absolutely. Hey, still ahead, a controversial sermon is now surfacing on the web. It's from Barack Obama's pastor. Take a listen.
(BEGIN VIDEO CLIP)
UNIDENTIFIED PASTOR: Hillary was not a black boy raised in a single parent home. Barack was. Barack knows what it means to be a black man living in a country and a culture that is controlled by rich white people.
(END VIDEO CLIP)
CHETRY: Why his comments may be popping up now and what the senator has to say about them next on AMERICAN MORNING.
(COMMERCIAL BREAK)
ROBERTS: Welcome back to the most news in the morning. He has a history of making inflammatory remarks about race and the United States. He is Senator Barack Obama's pastor. Now, the pastor's sermons are spreading on the Internet.
CNN's Susan Roesgen has got more.
(BEGIN VIDEOTAPE)
REV. JEREMIAH A. WRIGHT, TRINITY UNITED CHURCH OF CHRIST: Who cares about what a poor black man has to face every day in a country and a culture controlled by rich white people? SUSAN ROESGEN, CNN CORRESPONDENT (voice-over): This is Reverend Jeremiah Wright, preaching one of his last sermons at Senator Barack Obama's Chicago church on Christmas Day. The church records and sells video of its Sunday services and this one is getting a lot of hits on YouTube.
WRIGHT: It just came to me within the past few weeks, you all, why so many folks are hating on Barack Obama. He doesn't fit the model. He ain't white, he ain't rich, and he ain't privileged. Hillary fits the mold.
ROESGEN: This is the kind of message the Obama camp does not endorse. As for reaction, a campaign spokesperson said, "Senator Obama has said before that he profoundly disagrees with some of the statements and positions of Reverend Wright."
Nevertheless, the sermon is picking up steam. The reverend goes on to compare Senator Obama to Jesus and while the message seemed inspirational to his congregation, some will find it inflammatory.
WRIGHT: Hillary was not a black boy raised in a single parent home. Barack was. Barack knows what it means to be a black man living in a country and a culture that is controlled by rich white people.
Hillary can never know that. Hillary ain't never been called a [bleep]. Hillary has never had her people defined as non-persons.
ROESGEN: Senator Obama, who's been a member of this church for 20 years, has said that Reverend Wright is like an old uncle who sometimes will say things he doesn't agree with. And what's more, the campaign also says, "Senator Obama deplores divisive statements, whether they come from his supporters, the supporters of his opponent, talk radio, or anywhere else."
A spokeswoman for Senator Hillary Clinton's campaign said she had not seen this video clip, but that the campaign's first reaction was simply no comment.
ROESGEN (on camera): We tried to reach Reverend Wright to get his reaction now to the fallout from his fire and brimstone sermon, but we're told he's on vacation and not available.
Susan Roesgen, CNN, Chicago.
(END VIDEOTAPE)
ROBERTS: And we'll be talking with supporters from both the Obama and Clinton campaigns about this and as well the proposed delegate fight solution for Michigan and Florida. That's coming up at 8:15 Eastern.
And Michigan, it looks like, Kiran, may be a little closer to making a decision now. We hope to get a progress report on that a little bit later on this morning.
CHETRY: That's right. Florida is the one tripping things up again. Wow. Deja vu.
ROBERTS: How does that always happen?
CHETRY: Well, gas prices hit a record high overnight. We've been taking a look at prices around the country. Here's a live picture from Ann Arbor, Michigan this morning, where regular is for $3.39 a gallon. It's right on the par with the national average. Michigan's auto industry also taking a hit. A live report on the number one issue for Americans, the economy, coming up.
And if you have an iPod, you'll want to listen to this. What you need to know before you connect it to your computer. Well, it's one of the most popular stories right now on cnm.com overnight. New details ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
ROBERTS: Driven mad.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: What do you think?
UNIDENTIFIED FEMALE: Sucks.
UNIDENTIFIED MALE: Get in the bunker. It's going to get worse.
(END VIDEO CLIP)
ROBERTS: Gas prices on a record rise. New numbers in today on America's money problems.
Burning down the house. Homeowners going to extremes to get out of debt.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: These are not bad people. They're desperate.
(END VIDEO CLIP)
ROBERTS: A hot twist in the mortgage meltdown.
Plus, let's make a deal. Plans in Florida and Michigan on the table right now in the delegate fight. The "Most Politics in the Morning" on this AMERICAN MORNING.
ROBERTS: And in that delegate fight, Florida apparently still having problems. A lot of people don't like this idea of a mail-in vote, but Michigan may be getting closer.
CHETRY: That's right. Michigan could make the call soon. They've convened a blue ribbon panel and they're discussing options.
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