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Five Years of War; On the Road With Obama; The Clinton Papers; How to Protect Your Savings

Aired March 19, 2008 - 14:00   ET

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

DON LEMON, CNN ANCHOR: Hello, everyone. I'm Don Lemon, live here at the CNN world headquarters in Atlanta.
BRIANNA KEILAR, CNN ANCHOR: And I'm Brianna Keilar, in today for Kyra Phillips.

You're in the CNN NEWSROOM.

LEMON: Weather is our top story here today in the CNN NEWSROOM. You're looking at pictures from Jefferson County, Missouri, where several water rescues have taken place. We're going to have an update from Chad on that in just a second.

And also right here in the CNN Center we're having problems. Our roof is leaking because of the tornado that came through. It damaged us, and now we're getting the water from the rainstorm that's coming through right now. And as we speak, these are the people out in the atrium.

(WEATHER REPORT)

KEILAR: First we saw the flashes, then we heard the roar. Where were you when the city of Baghdad exploded on this date five years ago? Who could have predicted then the state of the war and the state of Iraq now?

Today, almost 160,000 American troops are still in Iraq. Over the past five years, almost 4,000 of those who went did not come home alive.

We'll talk a lot today about five years of sacrifice, of progress and of setbacks, and whether there still will be an Iraq war five years from today.

If a war must be quantified, it's done with numbers of dead and wounded. And the number of U.S. fatalities since March 2003 is 3,990. Now, many times that number of American men and women bear the scars literally of the fighting -- 29,000-plus are wounded.

President Bush spoke at the Pentagon today, telling troops, commanders and defense leaders that he does weigh the cost of the five-year-old war against the benefits.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Successes we're seeing in Iraq are undeniable, yet some in Washington still call for retreat. War critics can no longer credibly argue that we're losing in Iraq, so they now argue the war costs too much.

In recent months we've heard exaggerated amounts of the costs of this war. No one would argue that this war has not come at a high cost in lives and treasure. But those costs are necessary when we consider the cost of a strategic victory for our enemies in Iraq.

(END VIDEO CLIP)

KEILAR: The president defended his decision to invade Iraq, saying the world is better now than it was then, and the United States is safer.

Well, we used to call it the Green Zone. Then it was the International Zone. But either way, this is a prime chunk of territory in the middle of Baghdad, and it's where we find our Kyra Phillips.

Hi, Kyra. What's going on there?

KYRA PHILLIPS, CNN ANCHOR: Hi, Brianna.

And you know, there was a time that we would never be able to even do a live shot here, let alone do a live shot anywhere on the streets of Baghdad. I mean, I've been covering this war for five years. I remember being on the deck of the USS Abraham Lincoln when this war started, and now five years later, here I am on the streets of Baghdad, even seeing where those bombs dropped. And still, those areas not being reconstructed.

But a little sign of progress, yes. The fact that it's nighttime, I'm here in the IZ, I am going live and I am talking about not only the progress, but the challenges still that U.S. troops and Iraqis face five years into this war -- I able to talk to the top commander of this war just moments ago. This is what he had to say with regard to the danger on the streets.

(BEGIN VIDEO CLIP)

PHILLIPS: You talk about deaths being down, attacks on U.S. troops being down. Even the president mentioned that in his speech. But still, the streets are so dangerous.

Iraqis tell me every day, yes, I'm trying to go to work, I'm trying to go to the grocery score, I'm trying to get to school, but I'm afraid of the explosions, I'm afraid that I'm going to be killed when I'm leaving my house and going to my destination.

GEN. DAVID PETRAEUS, COMMANDER, MULTINATIONAL FORCES, IRAQ: Well, interestingly, the week through last Friday actually saw a reduction in the overall level of attacks throughout Iraq. But clearly there have been also in recent weeks some of these headline- grabbing attacks, sensational attacks, if you will, and a tragic one in particular, the suicide vest attack in Karbala.

Again, al Qaeda is intent on re-igniting sectarian violence. They have tried to do this all along. We're not sure exactly why.

It may be that they're trying to relieve the pressure on Mosul, where there is quite an intense effort to deal with one of the remaining areas in which al Qaeda still does have quite -- quite a grip in certain neighborhoods of that city of 1.7 million people. Some people, even Prime Minister Maliki, even thinks that maybe the testimony in April that's coming up, that again they're trying to show that they can still carry out attacks.

They have paid a price for that in Baghdad in the last two weeks. There have been significant kills or captures of the remaining car bomb and suicide vest networks.

(END VIDEO CLIP)

PHILLIPS: And while the general says, of course, those deaths are down, attacks on U.S. troops are down, I want to point out just since Monday, Brianna, 130 people have died due to either bombs going off or suicide bombers attacking a certain area. A hundred and thirty people since Monday.

So it's still happening, it's still a reality here. Anywhere you go is still extremely dangerous, even though overall numbers are down.

Coming up at the half-hour I'll give you an inside look to one of the bombings, a bit of a reality check that happened just in the past couple of days, and talk to you more about what the general said and also what Iraqis are telling me, Iraqi leaders and Iraqi soldiers.

KEILAR: All right. We'll look for that at the half-hour.

Kyra Phillips for us in Iraq. Thanks.

LEMON: Barack Obama gave a speech yesterday on race, and many said it was unprecedented. Tonight on "AC 360," an exclusive look behind the Obama campaign.

Anderson Cooper joins us now on the phone. He's traveling with the senator now. He's in North Carolina.

What are you seeing, Anderson?

ANDERSON COOPER, CNN HOST: Well, Don, we're actually on the senator's plane, on the tarmac, in Fayetteville. We're going to be flying to Charlotte, where the senators going to be making another speech, the second of the day, a town hall style format.

Earlier, he talked about Iraq. Clearly, 24 hours after his speech on race in America, he's clearly hoping today to get people focused on Iraq, trying to -- his campaign certainly hoping to try to change some of the focus off of the controversial Reverend Wright and on to Iraq and other issues which the senator clearly hopes his campaign can push forward on.

LEMON: Yes. That's going to be interesting to figure out how to turn the table there, or turn the tide, so to speak, Anderson. You're on the senator's plane now. Is he anywhere near you?

COOPER: He's a couple seats up from me. He just got on the plane. And we're about to take off.

LEMON: About to take off.

It has been very interesting seeing -- knowing the senator, Anderson, from Chicago and seeing the difference between being a state senator, and then all of a sudden now being in the position, in the spotlight that he is in. Really some very interesting and very smart and focused people around him.

Have you spoken to them? Can you talk to us about the people surrounding the senator and how they are guiding him through this process?

COOPER: You know, I expected sort of a larger staff. This is the first time I've spent the day on campaign trail with him. I've always talked to him by satellite or one-on-one in Washington or New York.

It's actually not quite as large an operation I had thought, though his level of Secret Service protection is quite extensive, probably the most extensive probably -- it certainly compares to Hillary Clinton, if not greater than hers. But he certainly has a lot of people around him who are watching over his every move, and it is a very tense time.

I mean, they've had a very bad week on this campaign. Clearly, Barack Obama said yesterday he had planned at some point to talk about race in America, but this was not necessarily the time or the place that he wanted to do that. So it's been a tense time I think for the entire campaign, and I think they are kind of waiting to see how this plays out over the next 24 hours, 48 hours.

LEMON: Yes, absolutely, Anderson. Real quickly, because we have got to run, is his wife Michelle with him, or is it just the senator?

COOPER: Just the senator today. She had flown in for the speech yesterday, but she's not traveling with him right now.

LEMON: OK.

Anderson Cooper, hey, I look -- I'm looking forward to seeing -- to watching this tonight. It's going to be very, very interesting.

Anderson, thank you for joining us today.

COOPER: Thanks, Don.

LEMON: All right.

And tonight on "AC 360," a day with Barack Obama, a look behind the scenes of the presidential campaign. Make sure you join Anderson Cooper live from North Carolina, 10:00 p.m. Eastern, here on CNN. KEILAR: Reporters and other interested parties are reliving the past today. They are pawing through thousands of daily schedules from Hillary Clinton's years as first lady.

The papers were released just hours ago under heavy pressure from Clinton's opponents. And CNN's Brian Todd is among the history buffs.

So, Brian, have you found anything yet?

BRIAN TODD, CNN CORRESPONDENT: Well, Brianna, one of the things that jumps out at you is how Mrs. Clinton kept her schedule fairly busy during a period where her personal life was seemingly just falling down around her, at least from a public standpoint. Those are some key dates during the Monica Lewinsky scandal.

For instance, during the week the scandal broke in the media, the week of January 19, 1998, she had Martin Luther King events that Monday, plus a gun control event and media interviews that same day on crime issues. On the day the story broke in the national media -- that's January 21st of '98 -- she had one private meeting at the White House, plus events at a Baltimore college and a black-tie dinner at the White House that night.

Publicly, at least, she kept up the image of a busy first lady, going to these key events. Going back one key date as it relates to the Lewinsky scandal -- that's November 15, 1995 -- according to the independent counsel report, that's the day President Clinton's intimate relationship with Lewinsky began. The events on Mrs. Clinton's schedule that day, a private meeting in the map room at 1:00. Then from 2:00 to 2:30 she met with Nobel laureates at the White House.

Now, that's some of the more sensational aspects of the schedule that we're looking at today. Remember, 11,000 pages here. There is a lot to go through. Kind of in bulk.

One notable characteristic of this is how early Hillary Clinton started to work to reform health care. She started her first meetings on this just three days after her husband were inaugurated.

We stopped counting the meetings after a little while. There were just so many that were on the schedule and not on the schedule. You know, seemingly every day for months on end.

The taskforce, the health care taskforce, was dissolved in May of 2003. But she met for months and months after that until the initiative was finally killed in Congress.

Clearly, you know, that was not one of the hallmarks of what, you know, she accomplished at the White House. It was a failed effort, but it certainly wasn't for lack of effort on Mrs. Clinton's part -- Brianna.

KEILAR: That's so interesting that she was keeping up so many appointments during the whole Lewinsky scandal.

TODD: Right.

KEILAR: But I guess, you know, it may be counterintuitive. But at the same time, I think a lot of people maybe who are having personal issues kind of hunker down at work, I suppose, Brian.

TODD: That's right. I mean, she was clearly -- you know, at least in public -- trying to maintain the image of someone who was not going to be undone by this.

There were a lot of private meetings on the schedule. Names redacted of those meetings at various times. Not just throughout that period, but throughout these eight years in office.

So, you know, you can read between the lines. Who was at these meeting, they don't mention. A lot of what you don't see in there may tell more of the story. The redactions are always something that have to be answered for in this, and we'll try to get some answers now.

KEILAR: All right.

Brian Todd there for us poring over these files. We'll let him go so he can do some more of that.

Thanks, Brian.

TODD: Thank you.

LEMON: How can you protect yourself, your savings and investments during these less than rosy times? We'll check in with our personal finance editor, Gerri Willis, who has got some great tips for holding on to what you saved.

KEILAR: And five years after the start of the Iraq war, peace might still be years away. We're going live to Baghdad for the latest on the violence that still rocks the country.

(COMMERCIAL BREAK)

(NEWSBREAK)

KEILAR: You've put aside money in brokerage accounts, or bank accounts, maybe, money that you're going to need for retirement, maybe college, a house. And you're probably wishing you just stuffed it in your mattress. So how do you protect your savings?

Our personal finance editor, Gerri Willis, joining us now from New York.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Hi there.

KEILAR: And Gerri, are brokerage accounts even safe?

WILLIS: Oh, yes. Well, you know, don't stuff it in your mattress. That's a big mistake, because you'll lose money against inflation. What you need to think about is the kind of protections out there already to help you out. There are rules, for example, that brokerages have to follow.

First off, companies have to have enough assets in reserves to pay customer obligations in case they have some financial trouble. In addition, the Securities and Exchange Commission has a rule that brokerage firms have to keep your account in a segregated account. This means that they can't dip into your funds or securities to pay off their debts.

And finally, there is insurance in case a bank gets into financial trouble. The insurance is called the Securities Investor Protection Corporation, or SIPC. Basically, your accounts are backed up by SIPC to $500,000. And so I hope that covers all of you down there in Atlanta. That's a lot of money, $500,000.

KEILAR: It sure is. But how can investors tell if their accounts are insured?

WILLIS: You want to look for the SIPC membership on your monthly statement. Look for it there.

It's also typically in the advertising. If you don't see it, ask your broker. Before you sign on with a brokerage account, you want to look at its track record with regulatory agencies. Go to FINRA.org for more info.

KEILAR: OK. So if we're not sticking our money in the mattress at this point, it's very possibly in a bank account or a credit union. What about those?

WILLIS: Right. Those are great.

It's not just people with brokerage accounts that are nervous. Clearly, people who are investing in other ways are nervous as well. But the protections are strong.

Your deposits, both savings and checking, CDs, IRAs and trust accounts, are insured by the Federal Deposit Insurance Corporation up to $100,000. Now, the limits are higher for married couples with joint accounts.

You should know that IRAs are insured up to $250,000. And just make sure your bank is a member of the FDIC.

You can check it out at FDIC.gov. You might also see it in their advertising. If you use a credit union to do your banking, which is often a great deal, you have similar protections through something known as the National Credit Union Administration, NCUA.

KEILAR: And a lot of people put their savings in 401(k)s. Obviously their savings for retirement. What if your company goes under? What happens to your 401(k)?

WILLIS: Bottom line, you should just be -- you should be fine. The company has to keep your 401(k) money in a separate trust from their assets, so basically you will have a couple of choices.

You can roll over your IRA, you can take the cash. But if you take the cash you will pay a 10 percent penalty and taxes. So you are better off rolling it over.

I know people have heard about people losing money in companies and their 401(k)s. It's typically because they've invested it in the company stock. So you want to keep that to a minimum just to be absolutely safe -- Brianna.

KEILAR: All right. Great advice there. Our personal finance guru, Gerri Willis. Thanks so much.

WILLIS: My pleasure.

KEILAR: And the economy, it is issue #1. And we'll bring you all of the latest financial news all this week at noon Eastern, info that you need on the mortgage meltdown, the credit crunch, and much more. "ISSUE #1," 12:00 p.m. Eastern, here on CNN.

LEMON: All right. Hillary Clinton was in Detroit earlier today trying to press her case for a new Michigan primary. Now she's in Charleston, West Virginia, and she's on the campaign trail.

Let's listen in.

(JOINED IN PROGRESS)

SEN. HILLARY RODHAM CLINTON (D-NY), PRESIDENTIAL CANDIDATE: ... more about that issue from folks sitting in gymnasiums and auditoriums like this than any other, because we're shutting the door to college for a lot of young people, for middle class and working families, and that has to stop, because I think we should invest in our young people. I think America's young people are a good investment. And I would like to see us do more to open the doors of college to all of you.

(APPLAUSE)

And of course we have to restore America's leadership around the world and here at home, and that starts with ending the war in Iraq and bringing our troops home.

(APPLAUSE)

Now, you know, we have to do that carefully and responsibly, and I've laid out a plan which we can talk about later, going into specifics about what I would do as your president. And as we bring our sons and daughters home, we have to take care of our veterans. We are not doing enough to provide health care and compensation and services.

(APPLAUSE)

You know, we need a 21st century GI bill of rights, don't we, to make sure that our young people today get money to go college and start a business and, you know, be able to buy a home. We have to deal with the economy, because none of what we want to do will be possible if we don't get the economy working for everybody again.

And that means we've got to be looking for ways. We're going to stop this home foreclosure crisis and begin to reverse what has been a deteriorating economic situation, which is very troubling. And unless we pay as much attention to main street as to Wall Street, we're never going to fix what's going on in the economy.

(APPLAUSE)

So, there's a lot of work to be done. But I really want to spend our time together hearing from you about what's on your minds.

Now, as the governor said, this primary coming up here in West Virginia could not be more important. I mean, it really is going to put West Virginia on the map of the world. And all of the issues that are important to West Virginia are going to have to be debated and discussed.

And we have an opportunity to really help educate the rest of the country and the world about all of the great opportunities here in West Virginia, because you see all these people who follow me around, you know, with the cameras and everything, they are all going to be here in West Virginia. So we want this primary to involve as many people as possible.

And my campaign would be thrilled to have your help as you become a participant in the Democratic process. Even if you're not old enough to vote yet, there's a lot you can do.

I worked in my first campaign when I was in high school many years ago. And I made friends and learned things that have just lasted a lifetime.

So, we hope you will come and volunteer. We hope you will go to my Web site, HillaryClinton.com, and be part of this national campaign.

So, with that, let me just throw it open and we'll start.

Who wants to ask the first questions? We've got -- there's a question right there. And there's a microphone.

QUESTION: Yes, I would like to -- I live about 20 miles way from here. And the gas prices are like $2.42. Well, straight across from the river it's $2.26.

I don't understand how the gas prices can fluctuate that quickly in such a small area. And also, what do you plan to do to help with our gas price issues?

CLINTON: How many of you have watched the gas prices go up in the last couple of weeks? Well, I don't know if you could hear the lady's question, but she was talking about gas prices fluctuating in a relatively small regional area between $2.22 -- $3.22 -- OK. And so just within a short period of space you see that.

Well I'll tell you what, a lot of people are predicting that gas prices are on their way to $4 a gallon. Now, I think that's going to be a big problem for a lot of people who have to drive to work, who have to commute, and are going to face increasing expenses.

I know we've got a lot of labor leaders and members of unions here, and a lot of them drive for the jobs that they are on. So, here's what I think we need to do.

Your question's a really good one, and there's no good answer to it. That's why I think we need an investigation into figuring out what's going on with these gas prices, because I don't think it makes a lot of sense the way that they are going up.

LEMON: Hillary Clinton in Charleston, West Virginia, talking about gas prices and saying she needs an investigation. She wants to see that, into why gas price are so high.

Also on this fifth anniversary of the Iraq war, she also mentioned that and talked about bringing troops home.

Of course, she is in Charleston, West Virginia, where that primary is on May 13th. The Republican primary already happened back in February. Earlier she was in Detroit. Now she's in West Virginia.

We'll continue to follow all the candidates on CNN today, and especially you can catch up with them in "THE SITUATION ROOM" coming up at 4:00 p.m. Eastern.

KEILAR: On Wall Street, Visa charges ahead. The credit card processor is a hit on Wall Street, and its IPO is the biggest in U.S. history.

Stephanie Elam is at the New York Stock Exchange with the latest on this.

Hi, Stephanie.

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Hey, Brianna.

Yes, Visa, it's starting off with a bang here. The credit card processor's IPO raised nearly $18 billion, making it the biggest initial public offering in U.S. history.

Visa actually rang the opening bell here at the New York Stock Exchange to mark its trading debut. You see there it says "NYSE takes Visa," very clever plan in their marketing campaign there. It trades now under the highly coveted single letter symbol V. And right now its shares are surging more than 33 percent, Brianna.

KEILAR: And how is Visa able to do so well, when you look at other financial companies and they've just been taking it on the chin lately?

ELAM: I know a lot of people are wondering that. One analyst put it this way, Visa is quote "an island unto itself." So, that's part of the reason why you can see they are doing so well. Times are tough. Banks and lenders are having a rough time. The financial markets are in turmoil. We all know those things, and the IPO market has been horrible.

One research firm says 21 IPOs have been canceled, but Visa's secret to success is this. The company done carry any consumer debt on its books, it makes its money from processing fees. So the more we use our cards, the more money Visa makes. And in this economic downturn, and times of tight credit, many cashed strapped Americans are actually relying more on their plastic to make ends meet.

Visa actually estimates that more than 40 percent of its transaction fall into the non-discretionary category such as food. That's up from 27 percent in 2000. So more people relying on it that way. The Visa story is one of the bright spots here on Wall Street. Investors seem to have a hangover after yesterday's buying binge. It's the big give back it looks today.

The DOW was off 178 points, 12214 there. So, a little less than one and a half percent. NASDAQ giving back one and one third percent at this time at 2239. So, we'll keep our eyes on it. But, coming up in the next hour more on issue No. 1, the economy. Most Americans say $4 a gallon gas is coming. We just heard Democratic Candidate Hillary Clinton talking about that. So, we're going to continue that discussion in the next hour, Brianna.

KEILAR: All right. We still have a little time left, so hopefully it will crawl back up there.

ELAM: You know that last hour things can always change around. You never know.

KEILAR: Very unpredictable. All right, Stephanie Elam for us there at the New York Stock Exchange.

ELAM: Thanks, Brianna.

LEMON: After five years of war and a staggering number of dead and wounded much of Iraq remains violent and volatile and also frightening. We're live from Baghdad.

(COMMERCIAL BREAK)

LEMON: Hello, everyone, I'm Don Lemon live at the CNN World Headquarters in Atlanta.

KEILAR: And I'm Brianna Keilar, you're in the CNN NEWSROOM.

Five years ago today American bombs fell on Baghdad and the Iraq war was on. An anniversary is a date, a number on a calendar, but it's also an opportunity to take stock of what that time has meant for the people of Iraq. CNN's Kyra Phillips is in Baghdad with that story.

Hi, Kyra. PHILLIPS: Hi, Brianna.

All throughout the day, I've been doing various interviews whether it was General David Petraeus or the spokesperson to the Prime Minister Nouri al-Malaki, and everybody wants to talk about the progress, and how within five years there have been all these steps forward.

And, yes, there are good signs. I mean, just standing here live at night in Baghdad is a sign of progress. There was a time that we could never think about doing a live shot in the middle of the evening and being out all day on the streets. We're here live in the international zone, of course it's much safer than being out in the Red Zone in the middle of Baghdad.

But there was a time when this area was getting mortared twice a day. So, that is a good sign. However, I wanted to take a moment and just put into perspective that since Monday, 130 people have died because of bombs, either suicide bomber or a bomb that's been planted in a marketplace. And one of those bombings was the bombing in Karbala, where more than 50 people died.

I just want folks to take a moment, to sit back, the images are disturbing, but just to remember that although there are a lot of people talking about progress, still every day this is what Iraqis go through.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: (SPEAKING FOREIGN LANGUAGE)

UNIDENTIFIED MALE: (SPEAKING FOREIGN LANGUAGE)

UNIDENTIFIED MALE: (SPEAKING FOREIGN LANGUAGE)

UNIDENTIFIED MALE: (SPEAKING FOREIGN LANGUAGE)

(END VIDEOTAPE)

PHILLIPS: And what do Iraqis fear most? So many of them tell me if U.S. troops leave right now or any time soon, that it's those type of bombings that will happen even more often. You heard General David Petraeus say, look in five years, deaths are down. Attacks against U.S. troops are down. But as you saw right there, it's still happening.

So, what needs to be done? I had a chance to talk with Iraq's foreign minister today. And I asked him what he thought about U.S. troops pulling out, if he's following the U.S. election and what he thinks the next president should do.

Well, here's what he said with regard to pulling out troops. It could be devastating.

(BEGIN VIDEO CLIP)

PHILLIPS: If U.S. troops were to leave tomorrow, next month, three months from now, would you be in trouble?

HOSHYAR ZEBARI, IRAQI FOREIGN MINISTER: We will be trouble because we are still not ready. Still, our forces haven't reached the level of preparedness or readiness to be self-reliant. Our goal (ph) does not open. We've seen some incursion recently by our neighbors into our territories. So, imagine that the terim (ph) forces is not here.

Everybody would be interested in, let's say and Iraq would be a failed state. And because of the new (ph) political position, the strategic position, and its location with oil resources of the war and so on and for the stability of the Middle East, of the region, it's a very important country and no U.S. administration could afford really to see this country fail.

(END VIDEO CLIP)

PHILLIPS: Something else the Iraqi foreign minister and I talked about, corruption. A tremendous problem here in Iraq and the fact that it's a part of the culture. We had a good discussion about that. We'll hear more about that in the next hour, in particular the corruption within the oil industry.

KEILAR: That's right and corruption certainly a concern of many authorities here in the U.S. and how that's affecting reconstruction in Iraq. Looking forward to that. Kyra Phillips in Baghdad in Baghdad for us.

LEMON: After five years of war, what do Americans think? More than seven in 10 in a CNN Opinion Research Corporation Poll say war spending, war spending has helped cause the economic downturn here at home. What should the next president do? Sixty-one percent say he or she should pull most troops out within a few months, 33 percent say troop levels should stay where they are now.

The rising cost of war, the estimate, one estimate now puts the total at $500 billion at a time when the U.S. economy is in turmoil. Now consider this, a new CNN Opinion Research Corporation Poll shows 70 percent of Americans think war spending and the economic turmoil are related.

CNN's Alina Cho has more.

(BEGIN VIDEOTAPE)

ALINA CHO, CNN CORRESPONDENT (voice-over): Five years ago, it was Shock and Awe. Today, it's a different kind of shock. Americans are feeling the pinch, the housing crunch, pain at the pump, a weakening dollar, and more people out of work. It's issue No. 1 on the campaign trail, but some say the economy and the war in Iraq are not two issues, but one.

LINDA BILMES, AUTHOR, "THE THREE TRILLION DOLLAR WAR": There is no question that the money that we have spent on the war and the way we have chosen to finance it by putting ourselves in an enormous amount of debt, that those two factors contributed to our economic weakening.

CHO: Linda Bilmes, co-author of "The $3 trillion War" says this is the first time in U.S. history we have concurrently cut taxes and increased spending during war time. This war is so costly, she says, it's also forcing cuts in other areas, like health care and education.

Money that could have been used, possibly, to save college administrator Timothy Duszynski's job.

TIMOTHY DUSZYNSKI, EDUCATOR: I'm calling to check on a couple of these positions here.

CHO: The 56-year-old has been out of work for a year.

DUSZYNSKI: The money is not here to spend domestically for the industry which I spent 30 years. Where is the money? The money is directed to that war.

CHO: Others call that argument an easy out, saying the real reason the economy is lagging is reckless lending practices and the housing bubble that finally burst.

ROBERT HORMATS, GOLDMAN SACHS ECONOMIST: The war is not a significant cause of the current recession. It's negative for the economy, but not a significant cause of the current recession.

BILMES: The average American understands that we are trying to construct roads and bridges, which keep being blown up in Iraq, but we don't have the money to construct roads and bridges which have a positive effect on the economy here at home.

CHO (on camera): The authors of "The $3 Trillion War" say even if the war in Iraq ended today, the lasting effects on the economy will be felt for years to come.

Alina Cho, CNN, New York.

(END VIDEOTAPE)

KEILAR: On the streets of San Francisco today, people are asking was it worth it? Voices raised against the war on a milestone date.

(COMMERCIAL BREAK)

KEILAR: Some protests in Washington taking a messy and even a violent turn. This is in northwest Washington, I believe. Protesters congregating earlier outside of the Washington building of Bechtel Corporation. Bechtel tapped in 2003 by the U.S. government to be the primary contractor for reconstruction in Iraq. Critics say that it was a war profiteer.

And so, what we know from one of our producers who is there on the ground -- you saw that red paint up there on the building. Apparently, some members of this crowd here threw light bulbs full of red paint, supposed to simulate blood, splattering that on the building as well as a couple of Bechtel employees. And apparently, also a protester on a bike pushed a cop, pushed a police officer and that police officer, there was an altercation between that police officer and that protester on a bike.

So, again, some protests in Washington getting heated. A new video here into the CNN NEWSROOM. We'll bring you the latest on this.

LEMON: And from Washington, also in San Francisco as in cities, other cities, California, everywhere, crowds are targeting businesses they accuse of profiting from now -- the now five-year-old conflict.

CNN's Dan Simon is there.

(BEGIN VIDEOTAPE)

DAN SIMON, CNN CORRESPONDENT (voice-over): This is just one of several protests taking place in the San Francisco Bay area. We're in downtown San Francisco in the financial district. You can see several hundred protesters here on the street. They are going in front of businesses they deem to be war profiteers.

Earlier, they were in front of the Chevron Corporation. Some chained themselves to the building. There were several arrests today. The organizers of this protest are saying that they will do anything, really, to distract the work environment in downtown San Francisco.

Police are out in full force. They say they will arrest anybody who blocks the street or blocks business. Activities like this are expected to happen all day today in the Bay area. And we're going to keep an eye on it.

Dan Simon, CNN, San Francisco.

(END VIDEOTAPE)

LEMON: Pleats (ph) of paper airplanes landing at the home of a little boy battling cancer. His Guinness book quest coming up.

BROOKE ANDERSON, CNN ENTERTAINMENT CORRESPONDENT: I'm Brooke Anderson in Hollywood.

He is the richest man in the world, according to "Forbes" and now he's a soap star. I'll have the story up next in the NEWSROOM.

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LEMON: OK. He is a billionaire with a soft spot for a soap opera. CNN correspondent -- entertainment correspondent, Brooke Anderson, is here to tell us how one of America's biggest businessmen is doing a little work in television.

OK, Brooke Anderson, I don't know this story. Oh, now I know who it is.

ANDERSON: You know who it is ...

LEMON: Well, I saw your script come up on the prompter. ANDERSON: It's Warren Buffett. And you know, this is a hyphenate we don't usually hear, Don -- billionaire-businessmen-soap opera actor. But, here it is, a real treat for soap fans. Warren Buffett will play himself in an episode of "All My Children."

ABC tells CNN the storyline has Buffett listening to an appeal by Erica Kane, Susan Lucci's character, to bail her out of jail. Lucci's character has been busted for insider trading.

Now, this isn't the first time Buffett has appeared on the show. He was back on in 1992. The billionaire shot the episode on Monday, it will run during May sweeps. Now, we don't know exactly what happens in the rest of this scene, but when Buffett answers the phone he's supposedly taking a call, Don, from his pal Bill Gates.

LEMON: OK. Very interesting.

ANDERSON: Who he just eclipsed on "Forbes" billionaire list.

LEMON: Yes and I don't think ...

ANDERSON: Gates is now No. 3, Buffett is No. 1.

LEMON: Buffet is No. 1. I don't think he needs the money. It's not really a part time job. He's just having a little fun I'm sure.

ANDERSON: Just having some fun, yes.

LEMON: So, we've talked a lot about the Paul McCartney divorce case, but I hear there's some new information out there. What have we heard?

ANDERSON: There is new information. The judge now from the Paul McCartney/Heather Mills divorce case has publicly released his ruling and Heather Mills can not be happy about this.

Judge Hugh Bennett calls Mills her own worse enemy and implied that she lied to the court. He also said that she was unreasonable and childish with her demands during the divorce. This is the same judge who awarded Mills almost $50 million in the settlement. So, despite the harsh words, it wasn't all bad.

Heather Mills says she is pleased with the settlement. But, she had fought to keep the ruling and the documents private, saying she was worried about her safety and her daughter's safety.

Also, it appeared that things were very intense in the hearing on Monday. McCartney's attorney, Fiona Shackleton, walked out of the hearing with wet hair, Mills joked that she had been baptized in court. Mills reportedly threw a glass of water on the attorney. Can't make this stuff up.

Also something else from the ruling that really stood out. McCartney's wealth had been estimated by many, including Mills, at $1.6 billion. But Don, according to the court, he's worth a paltry $800 million. LEMON: Oh, man. Poor Paul.

ANDERSON: I know.

LEMON: How is he going to survive on that? So wait a minute. Get back to Heather, she threw water on an attorney -- in the courtroom?

ANDERSON: Can you believe that? Well, the attorney arrived at court and her hair was dry and bouncy ...

LEMON: OK.

ANDERSON: ...looked good. When she exited, it was wet. So clearly something happened. Mills had very sharp words for this attorney. The two of them had kind of a bitter relationship. And she only would say that the attorney had been baptized in court.

LEMON: OK. Anyway, so billionaires and millionaires, that's all you're talking about today. So what do you have for our last item? Are you going to tell us -- are you going to give us a million dollars? I don't know.

ANDERSON: I would love to do that. I can't though, Don. Maybe next time.

But this last story is probably best described penny-ante. Shia LaBeouf is facing a $1,000 bench warrant for failing to make a court appearance. He is being charged with unlawful smoking. Now, I don't want you to jump to any conclusions when you hear about a Hollywood star busted for smoking -- this is a cigarette-related offense.

It's a misdemeanor, but neither he nor his lawyer showed up for court and the warrant was issued. You know, when you've got a court date it's a good idea to show up.

OK. Coming up tonight on "SHOWBIZ TONIGHT" scenes from a marriage. We've got more startling new information about what really went on behind closed doors when Heather Mills was married to Paul McCartney. What Heather did that has outraged so many on TV's most provocative entertainment news show. "SHOWBIZ TONIGHT" 11:00 p.m. Eastern and Pacific. We hope you join us then.

LEMON: All right. I got to watch now with all that that you just said, especially the water thing.

ANDERSON: Major court drama.

LEMON: Thanks a lot, Brooke. Always a pleasure to see you.

ANDERSON: You too.

KEILAR: Fleets of paper airplanes landing at the home of a little boy battling cancer. His Guinness Book quest. That's coming up.

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