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American Morning
Michigan Lawmakers Debating New Primary; Extreme Weather Across the U.S.; Price of Oil Slowly Dropping; Sleepwalking's Connection to Sleep Deprivation; Government's Plan for the Troubled Mortgage Market
Aired March 20, 2008 - 08:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KIRAN CHETRY, CNN ANCHOR: Less filling, the SUV of the future, parked outside today, full tank and fully charged. Is it worth it, on this AMERICAN MORNING.
Welcome. Glad you're with us. It's 8:00 here on the east coast, the first official day of spring, by the way, March 20th and the vernal equinox.
ROB MARCIANO, CNN ANCHOR: Feels good. Ali's wearing his ...
ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: We got our Easter egg colors going.
MARCIANO: You guys are like dressed for a funeral or something. Come on, it's spring!
CHETRY: When you walked out of the house and it's pouring down rain, you're not necessarily in the mood to throw on your Easter best.
ALINA CHO, CNN CORRESPONDENT: Kiran and I need to pick up our winter wardrobe.
CHETRY: Exactly, exactly. Glad you're with us today. We have as we're seeing Rob Marciano with us as well as Ali Velshi and Alina Cho, John Roberts is off for the week.
We start with politics and this morning, a new primary in Michigan really in question now. They thought they had a plan and could go ahead with it, but now it looks like those 156 delegates that could close the gap between Hillary Clinton and Barack Obama are actually in question. The state legislature only has until the end of today to approve a second primary. Then, they start a two-week recess.
The lawmakers are reviewing the bill that would allow for $12 million in private donations to pay for a do-over. The problem is is that both candidates have to sign off on this and OK it and Barack Obama's allies say that they are not sure about it. They say a new vote is not likely. Obama does not support the do-over plan and the legislature will not go ahead without his approval.
Now, Michigan lost its delegates when it voted early against party rules. Hillary Clinton won that initial primary. Barack Obama not even on the ballot in that state. Hillary Clinton went to Detroit yesterday to press for a solution to the deadlock arguing that Obama is denying Michigan voters a voice.
(BEGIN VIDEO CLIP)
SEN. HILLARY CLINTON (D) PRESIDENTIAL CANDIDATE: I have called repeatedly for an agreement that would seat Michigan's delegates at our national convention, because I believe your voices and your votes should count. When others made the decision to remove their names from the ballot I didn't, because I believe your voices and your votes should count.
(END VIDEO CLIP)
CHETRY: Anderson Cooper spent all day Wednesday with Senator Barack Obama on the campaign trail. He got an exclusive (INAUDIBLE) pass, a look behind the scenes with the senator. Here's what the Illinois senator said about Hillary Clinton's claims that he's dragging his feet over a do-over in Michigan.
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA (D) PRESIDENTIAL CANDIDATE: It's hard for me to get a sense of how we could be to blame for that situation. We have consistently said we'll play by whatever rules the DNC has laid out.
And Senator Clinton, I have to say on this, has been completely disingenuous. She said when she was still trying to compete for votes in Iowa, in New Hampshire, that Michigan and Florida wouldn't count. Then as soon as she got into trouble politically and it looked like she would have no prospects of winning the nomination without having them count, suddenly she's extraordinarily concerned with the voters there.
(END VIDEO CLIP)
CHETRY: So, here's a look at the delegate count as they stack up now, Barack Obama with 1,621, Hillary Clinton with 1,479, 142 delegates separating the two candidates and there are 2,024 delegates needed to actually clinch the Democratic nomination, a number that can only be reached now by support from superdelegates -- Rob?
MARCIANO: Kiran, now to extreme weather hammering the country this morning, the east coast dealing with some weather that was left behind from the flooding in several states in the nation's midsection. At least 13 people have been killed by the wicked weather and at least three people are still missing this morning. Flooding in Arkansas washed out highways and forced some people from their homes. Three people are still missing there this morning after their cars were swept away by flood waters. Several schools are closed again today.
And heavy rains are still pounding Ohio, which is already saturated by melting snow from a record snowstorm earlier this month. Residents of South Lebanon are being told to leave. The Little Miami River is expected to crest at 11 feet above flood stage. We have team coverage on this massive storm system this morning. Reynolds Wolf is at the CNN weather update desk and Sean Callebs live in South Lebanon, Ohio. We begin with Sean where the water is beginning to recede -- Sean?
SEAN CALLEBS, CNN CORRESPONDENT: Receding ever so slowly, Rob. Third time we've talked to you this morning, but really the first time as the sun begins to come up. You can actually see what's going on. Look at this field area. This is 304 acres of soybeans, just completely under water yesterday. The water was about five feet higher where I am right now, yesterday, but it has gone down somewhat significantly. That's good news.
Warren County officials where we are thought it was going to actually crest a lot higher than it did, but this is just one little slice, if you will, of the widespread damage. Flash flooding throughout Missouri, Kentucky, Illinois. All kinds of areas just really feeling it and there were some really, really harrowing moments for scores of people throughout the nation's midsection. Here are a couple of people talking about just how close it was for them.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: I just knew I had to get out. I was going to try to get out the back window, and it was too small. I have sliding back glass so I had to force the driver's door open, push it open and was able to get out. And as soon as I stepped out it swept me probably 50 yards before I could get my feet under me again.
UNIDENTIFIED MALE: Nobody knew what was coming. They were calling for a lot of rain, and that's been in the past and stuff. Nobody expected this.
(END VIDEO CLIP)
CALLEBS: Boy, those Missouri residents, really among the lucky. The water is going down ever so slightly here. You can see, this is a main road that (INAUDIBLE) its way through South Lebanon. I'm standing on top of a bunch of debris that was backed up from the little Miami River, Rob.
It actually came back this way up over that guardrail you see there. The water was probably at least this much higher yesterday if I look at the markers that a gentleman has in the distance. We talked to a local resident out here. He said he's lived here 20 years. This is only the third time Rob, that the Little Miami has jumped its banks and flooded to this degree, in 20 years.
MARCIANO: Goodness. Stay dry out there, Sean. Good news there, that at least looks like the waters are receding. I'm sure you'll be moving to another spot because there are rivers that still have yet to crest.
Let's go to Reynolds Wolf now at the CNN weather update desk tracking the extreme weather. Looks a bit drier where Sean is. At least the sun is out, but that doesn't mean that the danger is over, does it, Reynolds? REYNOLDS WOLF, CNN METEOROLOGIST: Oh no. We still have all that water to make its way back into those streams, those rivers and we may see the water rise up in a few more places.
You know Rob, there are so many people across the nation this morning. They're drinking their coffee and they're wondering how does this kind of widespread flooding take place? We're talking about over 1,000 miles of flooded countryside. As we go right to the weather map, we'll tell you why and how it can happen. It takes a lot of rain.
Some of the heaviest rainfall we've seen has been in Missouri and Arkansas, over a foot in two places. Cape Girardeau and Mountain Home, Arkansas to be specific. That spot in Missouri, Cape Girardeau just unbelievable, nearly 12.5, actually over 12.5 inches of rainfall. Some other places of note, Evansville, Indiana, 7.71, 7.36 in Mount Vernon and even Hamilton, Ohio at 4.9. OK. That's the bad news.
Let's talk about some good news. Good news that we're seeing a little bit of echoes, some echoes that are popping up over parts of St. Louis and points northward. Good news is a lot of this precipitation, so light it's not even hitting the ground. So that's wonderful to see.
Meanwhile, much of that precipitation now moving off the eastern seaboard but it's going to leave behind a lot of delays. So if you happen to be in a big hurry this morning, let's hope you're not in any of the major airports, in New York or in Boston or in Philadelphia, because you are going to be waiting, friends and neighbors. Gusting winds are going to keep you pretty much planted at least for 30 minutes to an hour at many of those airports. Just be patient. Things will get better by midday and into the afternoon.
Back to you, Rob.
MARCIANO: Thanks Reynolds. We'll be back to you in about 30.
CHETRY: Meanwhile, our Alina Cho is here tracking other stories new for us this morning. Alina.
CHO: Hey there, guys, good morning again, good morning everybody.
New this morning, Vice President Dick Cheney has arrived unannounced in Afghanistan. He's there to meet with U.S. troops and Afghanistan's President Hamid Karzai as that country heads off a rising insurgent attacks. They usually they go up in the spring.
A new audio message posted online is said to be from Osama bin Laden. On the recording, the al Qaeda leader condemns European countries for backing the U.S. in Afghanistan. He also criticizes the publication of cartoons considered insulting to Islam's prophet Mohammed. The Feds are working to confirm whether it's actually bin Laden's voice on the tape. No definitive word just yet.
New pictures this morning from Tibet of those protests there in recent days, violent protests, the images from economist reporter James Miles show the streets on fire, buildings damaged, debris littering entire blocks, just incredible pictures there of the damage. The snapshots come as China acknowledges for the first time the protests in Tibet are widening.
Federal prosecutors say they are planning to seek a new indictment against Barry Bonds. A judge dismissed the case last month, ruling the indictment was simply too big vague for Bonds' legal team to build an appropriate defense. Now the government says it has rewritten the indictment, maintaining Bonds lied to a Federal grand jury in 2003 when he said he never knowingly used performance- enhancing drugs.
We're all happy to report that a section of Interstate 95 in Philadelphia has reopened this morning. It would have been a huge mess. It probably is still a bit of a mess. That three-mile stretch, by the way, was closed on Monday to fix a crack in a support column. Steel towers are now in place while crews replace the crumbling pillar.
And in zoos across country, animals apparently are packing on the pounds, just like people are. After all, treats are their rewards and they didn't get the same kind of exercise that their counterparts did in the wild, so they're gaining weight.
Chicago's Brookfield zoo has a solution for that. They're trying out some sort of weight watchers for animals. Think the dolphins are getting it? Gorillas just love fruit juice for example, but it's high in sugar so each now costs two points. The point system is designed to help those zookeepers keep track of the number of treats each animal is given a week. Too many points means no more snacks.
Gorillas are one thing, but the penguins and the dolphins, I don't know if they have a weight problem, but apparently love handles a problem with the gorillas in the Chicago zoo.
VELSHI: I don't want to be the one telling the gorilla, no more snacks for you.
CHO: (INAUDIBLE) chomping on the lettuce. They don't have popsicles in the Congo.
MARCIANO: They're not doing anything there. Have them do something for their food. Maybe they'll earn their keep.
VELSHI: (INAUDIBLE)
MARCIANO: Thanks, Alina.
Let's go over to Ali Velshi. America's feeling the pain with this oil, but you're telling me that that number behind you.
VELSHI: This is out of date. This is the lowest we've seen gas, a barrel of oil in a while. That was a drop of $4.94 yesterday. That was the biggest drop dollar wise in about 17 years. Oil prices have dropped since then. In fact, just this morning, they were under $100 a barrel. They're just hovering around $100 a barrel right now. What a deal. You're going to start to see that maybe in gasoline prices. We're still around $3.27 a gallon, which is very close to a record high. We went out and we asked Americans what they think.
CNN and Opinion Research Corporation conducted a poll about whether rising gas prices have affected, caused financial hardships to families. Now remember, we're not talking about all the rest of inflation that's worked its way into milk and bread and cheese and eggs and everything that gets delivered. We're talking about gas prices, 72 percent of Americans say it has caused financial hardship; 28 percent say no.
So now we asked for a little premonitions. What do we think is going to happen to the price of gasoline? How likely is it that gasoline will cost more than $4 a gallon this year? Again we are at $3.27 a gallon. Some states, that's the national average, some states are already above $4, 72 percent once again saying highly likely that it will reach $4 a gallon, 20 percent saying somewhat likely, eight percent saying not likely which would seem unusual, except that we are actually seeing a drop in the price of a barrel of oil.
We have seen, right now we're seeing gas prices go up, but we got some predictions that they'll be between $3.50 and $3.75 by the time we get to Labor Day, so for those of you, eight percent who are hopeful, I hope you're right.
MARCIANO: Is it possible because we're using less?
VELSHI: That's absolutely possible. We are seeing, as the price of gas goes up, people start to pull back on their demand. We've seen demand sink in the last year for gasoline.
MARCIANO: Keep it up guys. You're doing well.
CHETRY: Thanks, Ali. Here's some shocking pictures right now of a driver out of control, a sidewalk full of people and right in the way there he goes backwards gunning it and then forward again. What went wrong? We're going to take a look at that video a little bit more after the break.
Also, one of the mysteries of the night, sleepwalking. Medical correspondent Elizabeth Cohen is taking a look at a new study about it.
Hi, Elizabeth.
ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: Kiran, finally, there is a clue. What makes some people sleepwalk? We'll have that for you when AMERICAN MORNING returns.
(COMMERCIAL BREAK)
MARCIANO: Extreme weather is making travel difficult in northern Mexico. Sixty mile-an-hour winds knocking down a huge road sign. Look what happens next. Amazingly, no one was killed in this crash, 64 hurt, though. All are expected to recover as that bus slammed into that road sign. My goodness.
All right, a tragic accident in Buenos Aires caught on tape. Check this out, on Tuesday, a car driven by an 80-year-old hops the curb in reverse, plowing into a group of people waiting for a bus. The driver then took off again in forward running down more people.
Nine people were hurt in that accident. 82-year-old died at the hospital, and the driver's son was in the car just before the accident. He says the car's gear box somehow got stuck reverse. Police have charged the driver with homicide.
CHETRY: Some food for thought now, in a new survey says that men eat more meat and women eat more veggies. Some people say that would are conventional wisdom, but now they've looked at 14,000 American adults and were asked about their eating habits.
Men scarfed down more frozen pizza, frozen hamburgers and frozen Mexican dinners but they also had asparagus, Brussels sprouts, peas and peanuts. See that. Women were more likely in their fridges to have fruits, eggs and yogurt. Men also were more likely to eat undercooked food. (INAUDIBLE)
MARCIANO: Busy!
CHETRY: The only risky food, women ate raw alfalfa sprouts.
MARCIANO: That's good?
CHETRY: I can be I guess, sushi?
MARCIANO: Yeah. But it takes time to prepare.
CHETRY: Exactly. You're not hammering out any California rolls in your spare time.
MARCIANO: No.
CHETRY: Well, a sleepwalking medical mystery that affects about 4 percent of Americans. Doctors are often puzzled about exactly what triggers it. Elizabeth Cohen joins us now for the medical update desk with news on a developing study.
What is it about sleepwalking they've been able to determine and how it relates to sleep deprivation?
COHEN: What they've determined actually is that it seems Kiran that many people sleepwalk because they're sleep deprived. Doctors have sort of never quite figured out why do some sleepwalk. And so what they found is that when people don't get enough sleep, they tend to walk when they do sleep. It's not exactly clear why this would be true, but that is what this study found.
So doctors have some tips for what to do to get more sleep so that, A, you'll get more sleep and, B, hopefully you won't sleepwalk. So let's take a look at these. First of all, it's important to unwind first, to unwind before you go to bed. Don't just plop in bed, read a book. Do something to sort of get yourself calmed down.
Also, if you are lying in bed and can't sleep for 15 minutes, you ought to just get up. Don't keep lying in bed. If it's not working after 15 minutes, it's not going to work. Get up, read a book. Do something relaxing -- Kiran.
CHETRY: So sleep, why do we sleepwalk? Awe any closer to figuring that out?
COHEN: They really aren't any closer to figuring that out. But hopefully this new study is a big step, because this new study shows that there may actually be sort of a cause here and that's sleep deprivation. So if they can just get people a better night's sleep, that might help avoid sleepwalking.
CHETRY: Also some of the other effects of sleep deprivation. I'm not sure if we want to know, but I know you have them for us.
COHEN: We certainly do. Sleep deprivation is bad. Many of us have it, even if you're just getting six hours a sleep a night, that's enough to cause sleep deprivation. So let's take a look at what some problems can be caused when you don't get enough sleep. First of all, you gain weight. Lots of studies on this that shows the less sleep you get the more you want to eat.
Also, you just don't -- your memory doesn't work the way it ought to and also many studies show that people drive poorly when they're sleep deprived. So the first reason, if sleepwalking isn't reason enough, here's three more reasons why you really ought to get a good night's sleep.
CHETRY: If you have any tips on that, just tell us later. Thanks a lot, Elizabeth.
COHEN: Thanks.
MARCIANO: Don't take a job that gets you here at 3:00 a.m. That what helps, too.
Hillary Clinton's road to the White House gets longer without Florida and Michigan's delegates. Coming up, we're going to talk about the three ways she can still win the Democratic nomination.
And can $200 billion even make a dent? The government's latest plan to freeze the mortgage meltdown and what it means for you. That story also ahead on AMERICAN MORNING. Stay right there.
(COMMERCIAL BREAK)
CHETRY: Some stories making headlines on cnnmoney.com this morning, oil prices lowering once again this morning after seeing the biggest drop in 17 years yesterday. Oil now hovering around $100 a barrel in early trading right now.
Chrysler says it expects to post a big drop in sales for the month of March. This comes as Chrysler is reducing its sales to rental agencies. Car companies make less money per car when selling to high-volume buyers.
Also, high gas prices leading to fewer fill ups, gas consumption dropping one percent over the last two months. Now, it may not seem like much, but gas consumption usually goes up by one percent every year. More people are carpooling, using mass transit and also buying hybrids, which brings us to this morning's "Quick Vote" question.
Would you buy a hybrid vehicle? Right now, 72 percent of you say yes, 28 percent say no. Cast your vote, cnn.com/am. We're going to give a tally of your votes throughout the morning and also a little bit later, we're going to be checking out a hybrid SUV and comparing and contrasting. Is it worth it? Is it worth your money to get one?
MARCIANO: Hybrid SUV, looking forward to that.
The Federal government has announced a plan to pump $200 billion into the troubled mortgage market. What does it mean if you're looking to buy or sell?
The economy, as you know, is issue number one and our personal finance editor Gerri Willis joins us now to help explain. Because, you know, this is just one more thing the government is doing and I just can't keep track. Help me understand.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: They're doing a lot of things finally. They took a while to get to the problem, but now they are really working at it. Essentially Federal regulators are going to allow Freddie Mac and Fannie Mae, these are two institutions that are quasi-government and they are important in the mortgage industry.
They're going to be allowed to have lower capital requirements. That's less cash on hand in the back room, so to speak so they can put it in the marketplace and this is $200 billion that will go to mortgages, that will go to insuring mortgages. It's critical, because these two institutions really stand in the middle.
We talked about how these mortgage was bought and sold. Fannie Mae, Freddie Mac, they're right there doing it every day. This should help the market. It should e a good thing for the market for you if you're looking for a loan, should reduce costs of getting a mortgage.
MARCIANO: This is just one more thing that we're doing. Would you consider this a band-aid or is this a long-term solution?
WILLIS: It's been all about the patchwork solutions all along. It's never been about one thing and, of course, the Federal Reserve has been important in cutting rates. The Federal government has bailed out Bear Stearns. We've seen lots of things go on. There isn't one answer to this question.
But I want you to see something that Mark Zandi said. He's an economist at economy.com. He thinks it's all sort of coming together. Here's what he told me last night. Policymakers are fully engaged. That means they're working. When policymakers act, it is generally the beginning of the end of a crises. It's likely to be a long and painful one for the housing market, but the worst is now in sight.
Now, Zandi's research is really taken very seriously by professionals in the marketplace. They have some of the best numbers out there. So it's interesting that he's saying this. He believes we're coming to a turning point, possibly the bottom of the problem.
MARCIANO: That's good news. Maybe get out there and buy a little, nibble on something?
WILLIS: I think it's time to shop. Certainly shop.
MARCIANO: Sniff around a little bit and see what the interest rates are. Gerri Willis thank you very much.
WILLIS: Thank you.
MARCIANO: Join Gerri and Ali and the entire CNN money team for "ISSUE #1" today and tomorrow, noon Eastern, right here on CNN.
CHETRY: Here's a story that's sure to outrage taxpayers in Montgomery County, Maryland or really taxpayers anywhere. According to the "Washington Post," County Executive Isaiah Leggett is having a $65,000 bathroom installed in his office and guess who ends up paying for it?
The bathroom will have a small sitting room and a shower. He says he needs the shower because he lives 40 minutes away and attends functions after work. His aides say he needs his own bathroom because using the public bathroom could expose him to harm.
All of this comes at a time when Leggett is pushing to raise property taxes in the county, offer employee buyouts and trim spending to handle a nearly $300 million budget shortfall. Leggett telling the "Washington Post," "I don't see this as a big expenditure."
Still ahead, you're watching the most news in the morning, in a world where it costs $4 per gallon for gas and another $4 for a gallon of milk. Can you really live the America dream on $25? One man set out to find out. He had just $25 in his pocket, a gym bag and a sleeping bag and he built himself a whole new life. Could the lessons be learned for your financial future?
And the news is all over the Internet this morning, reports that Apple might be ready to offer iTunes for free, meaning the entire catalog, you can down load whatever you want and pay nothing. Veronica de la Cruz gets to the bottom of it. There's got to be a catch, right? That's ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
CHETRY: Welcome back to AMERICAN MORNING. 8:30 here on the East coast. I'm Kiran Chetry.
MARCIANO: And I'm Rob Marciano. John Roberts has a well- deserved week off. CHETRY: Well, we are talking about politics. Never a break from that. A lot going on today with the Michigan primary and questions about whether or not this revote is going to be able to happen. State legislature has just a day now to decide whether or not they're going to be able to pass this do-over before they adjourn for the next couple of weeks, and they say they're not going to go ahead with this without the approval of both campaigns.
Barack Obama's camp right now doesn't look like it's onboard. The Clinton camp says that she believes, or that they believe, that he's trying to run out the clock and those Michigan delegates of course are critical to her chance at the nomination.
"Time" magazine senior political analyst Mark Halperin joins me now. Both campaigns have tried to insist throughout this debate about a revote both in Florida and Michigan. They're not doing anything to personally advantage their campaign, but it looks like that's what it's come down to.
MARK HALPERIN, "TIME" MAGAZINE, SENIOR POLITICAL ANALYST: The way it's going now, it's gone advantage Obama. If Clinton wants Michigan and Florida and play for three reasons, she wants to win two additional big states to make that argument that she's won all the big states. She wants to win additional\ delegates, of course, and she wants to get that popular vote included.
The talking point with those superdelegates to say, I beat Barack Obama in overall popular vote. Symbolically important, doesn't necessarily, of course, matter in the final outcome. So, she'd like them in but right now, thumbs down on both.
I think the chances that it will be a revote in either state are pretty small. The chances the Democratic party says that the original January votes that were not under the rules book count, that, chances are pretty small. So, the question is what do those people do now?
CHETRY: So, who looks like the bad guy here? Because I know that there are -- at least a big swell of criticism in Florida. Many voters very angry that it's not going to count. So, is it Barack Obama the bad guy? Is Hillary Clinton looking like she's the rule changer or is the DNC look like they just can't handle their people?
HALPERIN: Well, I think a little bit of each. There's a lot of blame to go around. Obama's campaign from a political point of view, you got to take your hat off to them. They've done a good job of not having the blame foot on their doorstep but still keeping the process moving slowly enough so that these votes were effectively killed. I think in the end there'll be enough blame to go around.
And again, from a practical point of view, Clinton is the loser on this because she needs those states to count. And as of now, I think the plug will be pulled in Michigan and Florida by the end of the day.
CHETRY: All right. A lot of news out. Reporting that Clinton's facing a difficult battle mathematically. That something major, I believe even the word miracle has been tossed around in some of the writings today for her to actually be able to secure the nomination without the superdelegates. So, what's going on with that?
HALPERIN: Well, she needs those superdelegates. A miracle probably is overstating it a little bit but she still needs a big turnaround. She can't overtake Obama and those elected delegates in the primaries and caucuses. I think the best thing that she has going for her right now is the problems Barack Obama is having on questions of electability and Reverend Wright is front and center of that. He is still introducing himself to the country.
And a lot of these superdelegates are saying themselves, we were excited about his candidacy. He still looks to many like a stronger general election candidate. But until he gives them a better sense of where he is on some of these more controversial topic, particularly Reverend Wright. I think at a minimum she's got a chance now to try to win Pennsylvania and some of these other upcoming states to make the argument she'd be more electable because that's really what matters in the end.
CHETRY: What seems to happen though even when there is a win on either side, it's a small enough margin with the delegates being split, it doesn't have a huge impact?
HALPERIN: Not on the elected delegate. That's why even though his lead is small, it's impregnable. There's no way for her to catch him on those elected delegates because he's doing fine in all these states. He will be fine in the upcoming ones. It's those unelected superdelegates. He needs more of them to win. He can't win without more of them. And she's hoping to make the argument.
The "New York Times" is reporting today that her campaign is now making the Reverend Wright argument to the superdelegates saying this is toxic in the general election. And based on their feelings of Republicans, how they feel this would play for Obama in November. There's a lot of Republicans who think that analysis is correct. Clinton has to hope the superdelegates see it that way and more of them go towards her in the end.
CHETRY: The only question though is will the people's argument, as well for the superdelegates, are they going to go against what the popular and the pledged delegate vote?
HALPERIN: Very powerful. And that's what Obama has most going for him. That small delegate lead amongst the elected delegates. Nancy Pelosi, the Speaker of the House, other prominent superdelegates who are undecided have sent the signal you cannot overturn the will of the elected delegates. Her hope is a combination of big state wins, Obama having trouble on Wright and other issues and to try to make the argument that she'd be stronger in November.
It's a tough place. And that's why people see her odds as a long shot but it's not impossible and until Obama finally deals with this Wright issue, she's got, as Reverend Jackson would says, she can keep hope alive. CHETRY: All right. Every year is a new civic lesson on something we never thought we'd never have to talk about. Pledged delegates ...
HALPERIN: That's right.
CHETRY: ...and superdelegates and on and on. Mark Halperin, great to see you, as always. Thanks.
HALPERIN: Great to be here.
MARCIANO: Extreme weather now. At least 13 people killed after two days of nonstop rain in the Midwest. More than a foot of rain fell and soaked Indiana, Kentucky, Illinois, Arkansas and Missouri. At least three people are reported missing in Texas, and Arkansas.
Missouri is the hardest hit. The state hasn't seen this kind of flooding in spots in more than 100 years. The storm in Texas sent a tree right through this house in Longview. It also crushed a car and to make matters worse, the owner said that he had someone that was going to buy the car the next day.
Reynolds Wolf had been tracking all of this extreme weather at the CNN weather center. It looks like a little bit less rain today but those floodwaters in spots continue to rise.
Hi, Reynolds.
WOLF: They certainly do, Rob. Especially in parts of Missouri, namely, Eureka, Missouri. Take a look at these live image that we have for you. Compliments of KMOV and here you go. We got actually a live rescue taking place. You see a car. You see a trailer. Normally, it looks like a livestock trailer. Don't see any livestock in there. The back is open.
It looks there's just some -- looks like a work bench or something in the back of trailer but you do see a boat, someone trying to get someone out of the cab of that truck. And this is going to be a situation that's going to play out many times over the next couple of days, until these floodwaters continue to recede.
Folks, this is the reason why we tell you never to drive in any type of area where you cannot see -- pardon me, folks. This is whenever you have floodwaters that are covering the roadway, this is why we tell people never to drive through area. Just had some loud noises here in the studio.
Let's go back to the weather computer. As we do, you do see some scattered showers that are popping up on parts of the map. What we're dealing with, the showers, certainly affecting places like our Eureka.
What we're going to be dealing with are the flood swollen conditions not only in the parts of the Mississippi River but also in many places in parts of Texas, back in Arkansas. You're seeing right now this person in the boat pulling away from the red pickup truck, making a way right along that fence line. Looks like they're trying to get back to higher ground. Not exactly sure just how high that water could be. Certainly, enough to float a boat.
Now, as the camera shot pulls away a little bit you can see that apparently they're just trying to go down that lane. Water didn't seem too deep. It's certainly not enough to stop the truck and then far on the bottom left-hand side of the screen, you see another vehicle that is just near, much dryer water, drier land, rather.
And, of course, you see other areas. We have, looks like the field. The water receding a little bit in a few places. If we can, let's go back to the weather computer for just a moment or two. On the weather computer what you're going to be seeing again, most of the rainfall is moving out. You do see some images that are popping up in places like Waterloo, southward to St. Louis. A lot of these, not even hitting the earth.
So, what we're dealing with now, at least the story is not really what's going, falling from the skies but rather what is on the ground, and it's going into the rivers. Then, we're going to be dealing with that for quite some time.
Let's send it back to you guys.
MARCIANO: Reynolds, great job describing that dramatic live video coming in. I should mention that the noises that we're hearing behind you, are controlled glass drops from damaged ceiling at the CNN Center.
WOLF: Yes. I didn't want to throw everyone off at home. But yes, it sounds like we got all kinds of stuff coming in on the ceiling. Didn't want to distract anyone or anything but a little warning.
MARCIANO: Everybody's OK though. I just thought it's a controlled matter, I assumed.
WOLF: For the time being, it seems OK. But yes, very loud time here in the NEWSROOM. No question about it.
MARCIANO: All right. Thank you, Reynolds.
Millions of dollars of damage for the roof there at CNN, and they're trying to get it all fixed.
Well, guess what, Reynolds and everybody else, take a look. Yes. First day of spring. Believe it or not, you couldn't tell by the flowers. It happened last night. Biologists and scientists say, well, global warming is to blame for what seems to be an early arrival of spring every year. They say that trees are budding and sprouting days and weeks earlier than they were 30 years ago. That's true.
However, a calendar experts, they've got a different explanation. They say that the vernal equinox, which is now, comes sooner because the year doesn't have an even number of days, at least on the calendars. Other scientists say that the season's length change because the earth's wobbly rotation around the sun. Either way, it's certainly a beautiful time of year, isn't it, Kiran. It can't come too soon, it would have an awful, awful winter. Those are great pictures.
CHETRY: Love the cherry blossoms, the tidal base and a beautiful sign of the season. Thanks a lot, Rob.
Right now, we have some news breaking from the economic front, and that is possibly some more adverse news about the labor market. We're getting news right now of the number of newly laidoff workers that have filed their jobless claims and right now it rose to the highest level that we've seen in nearly two months.
The Labor Department reporting that applications for jobless benefits totaled $378,000 -- 378,000 people last week, and that was an increase of about 22,000 from the previous week. Again, they say that is the biggest jump they've seen in seven weeks. We're going to break that down for you as well with Ali coming up in just a couple of minutes.
Meantime, Chevy is about to unveil the first full-size SUV hybrid. There it is. It's parked actually right outside of our studios. We're getting a first look at it downstairs. How much does it cost? Will it pay off if you buy hybrid versus your standard regular Chevy SUV? And does it make sense to have a hybrid SUV, if you're looking to buy hybrid and save gas? We're going to break it down for you in just a couple of minutes.
Also, wouldn't it be great if iTunes were free? Coming up on AMERICAN MORNING, Veronica de la Cruz will explain why that idea may not be as farfetched as it sounds. All the music you want, any time.
(COMMERCIAL BREAK)
CHETRY: Times are tough all over, gas prices way up, your grocery bill through the roof. And you may think it's harder to make ends meet. But a recent college graduate decided to make that his challenge. He started off with no 25 bucks and a gym bag and ended up employed, with a home and some money in the bank.
Adam Shepard wrote about that year in his book "Scratch Beginnings, Me, $25 and the Search for the American Dream." And he joins me this morning to talk more about this experiment of sorts.
Now, your goal with this, by the way -- welcome, thanks for being with us.
ADAM SHEPARD, AUTHOR, "SCRATCH BEGINNINGS": Thank you very much.
CHETRY: You wanted to end the year with $2,500 in cash, want to be able to live in an apartment, have a car and be in a position to further yourself and you had some ground rules as well. You didn't -- that your previous life did not exist. That you couldn't use any previous contacts. Your college education or your credit history, and so you end up in Charleston with an outfit and a sleeping bag and what do you do? SHEPARD: On a Monday, I pick Charleston out of a hat of 12 cities and on Tuesday, there is was in Charleston, you know, starting this project.
CHETRY: All right. So, let's talk about what your first experiences are. So, you got to Charleston. How did you go about finding the homeless shelter and what did you say when you got there?
SHEPARD: You know, it's very interesting. Because I didn't really have a plan. I planned on sleeping outside the first night. You know, I have my sleeping bag and tarp and all these different things and I just kind of started walking down Rivers Avenue and a lady said, hey you need to get somewhere, you know.
I was kind of, this was big time country kind of come to town and they knew I was a stranger. I said, where's the homeless shelter? And she pointed me in the right direction and that's where I went. They took me in first night, open arms and I went from there.
CHETRY: Was there ever a question about believability, whether people thought were you doing this for a project?
SHEPARD: I thought there would be, that touched my ego a little bit. I was wondering why nobody was saying, hey, who you are, really but no. I had this back story, that nobody really believed anyway, but didn't care about, about how I was escaping my druggy mom to live with my alcoholic father. And you know, nobody really cared about me, which was great, because I just sat back and observed. This lifestyle, which I had become totally entrenched in.
CHETRY: So, you started off doing that and then you got these small menial jobs and you talk about how you didn't want your college experience to play in, but it obviously shaped your work ethic and who you are as a person. So, how did you, I guess use what you knew and use your background to continue to move forward in these baby steps?
SHEPARD: Yes. I think that's the whole idea, Kiran. I erased my background on paper but did have the mentality to save my money, to budget my money. You know, these different -- I'm not good with my hands. I'm not talented, but that is my one advantage is that I know what to do with my money, and I think that's what I talk about in the book and that's what I'm trying to get out there is hey, listen, I don't have any special talent, but I am good with my money and that's why I was able to succeed in this project.
CHETRY: So what's your advice for people that are dealing with tough economic times? Finding themselves having to do without those luxuries that they think are essential?
SHEPARD: Oh, what I learned more than anything is the simplicity of life. What it takes is, you know, we don't need the iPods and Internet, and all these different things, cable TV, extravagant cars. If you can afford them, great, but I think, if you can't, then you don't need those right now.
You know, be simple. I was cooking chicken and Rice-a-Roni and seeking free entertainment and I think that's not revolutionary, the simplicity of life. But like I said before, we seemed to have lost sight of that and I think that's what it's all about. That we can be happy but we don't have to spend money to be happy.
CHETRY: Fascinating, fascinating story. And thanks for sharing with us here. Adam Shephard, the author of "Scratch Beginnings." Also, for more information, go to Adam's Web site, scratchbeginnings.com. Thanks again.
SHEPARD: You're welcome. Thank you for having me.
MARCIANO: Speaking of iPods, anybody who has an iPod will want to listen to this. There are reports of iTunes going free. Veronica de la Cruz has been checking the web this morning with some answers. This is -- so, and how? I'm definitely curious.
VERONICA DE LA CRUZ, CNN INTERNET CORRESPONDENT: Well, it's merely a report right now. You know what, we did put a phone call into Apple this morning. They declined to comment and Apple reportedly is in talks to make iTunes free, like Rob was just saying.
Here's how it would work. Customers would be able to download whatever they want from the huge iTunes music library, but there's going to be a catch. You must be willing to shell out extra for so called premium iPods.
Of course, there's really not a confirmation yet that this is even true, we're really not sure how much more. Reports do say it hinges on the way Apple shows profit with the major record label, which by the way, Rob, those labels aren't even saying that there is a deal yet. So, again ...
MARCIANO: So, we don't know ...
DE LA CRUZ: We don't know yet.
MARCIANO: There are so many times though when we hear about rumors from Apple or about Apple.
DE LA CRUZ: Rumors, period.
MARCIANO: They turn out to be true. So, where are these reports coming from?
DE LA CRUZ: Right. Well, rumors or reports ...
MARCIANO: Are these reliable sources? Where are they coming from?
DE LA CRUZ: The "Financial Times," first reported this story. Now it is all over the Internet and some sites are reporting that Apple is also considering a subscription for iPhone users. Other sites say the company will sell iPods with pre-loaded songs. Again, at this point we don't have confirmation but critics say Apple has flooded the market so badly. They needed to do something to keep up their record sales. And the whole thing could be a response to a new offer from Nokia. Because later this year, Nokia is set to launch a cell phone that comes pre-loaded with music. And when you buy the phone, Rob, you get a one-year pass to their music library, apparently you can download as many songs on to your phone as you can in that year. Keep them even after that year is up, the music however will only on your Nokia cell phone. So, we do think that this might a response to that. I mean, wouldn't you think?
MARCIANO: Sure. Well, I'm just upset I can't play iTunes on my BlackBerry. So, that's frustrating as well, but it seems like ...
DE LA CRUZ: Well, that day might be just around the corner. You never know.
MARCIANO: That is Apple's field.
DE LA CRUZ: Hey, I just want to say that you're doing a great job up here, by the way. Nice to see you in New York.
MARCIANO: Oh, thank you. Great to be here. Nice to see you, too.
All right. Let's talk Atlanta and the CNN NEWSROOM is just minutes away. Tony Harris is at the CNN Center to take a look. What's going on? I hear things dropping from the ceilings. Is everybody OK?
TONY HARRIS, CNN ANCHOR: Rob, we're under siege here in the NEWSROOM. Good to see you. Under water in the midwest, on a much more serious note. That story on the NEWSROOM rundown for you this morning. Floods overrun homes and roads, from Missouri to Ohio, and there is more to come. Rivers will begin cresting this weekend, 13 deaths across the region.
Deadline day in Michigan. Will there be a re-do of the Democratic primary? Tiger Woods on a hot streak. Man, is he. Six in a row. He's got the British bookies growling all the way to the bank.
Breaking news when it happens, even if it's our breaking news, right here in the NEWSROOM. We get started at the top of the hour on CNN.
Rob, back to you.
MARCIANO: All right. Tiger Woods has been a pretty safe bet of late. You stay safe down there. Will see you in about 10 minutes. Thanks, Tony.
All right. Are you paying 80 bucks to fill up your SUV, would you rather go further between your fill-ups? You may want to take a look at first full size hybrid SUV to see if it's worth the higher sticker prize. Kiran's outside to kick the tires and check it out. That's coming up next on AMERICAN MORNING.
(COMMERCIAL BREAK) CHETRY: Welcome back to AMERICAN MORNING. You know, we've been talking about the high price of gas and the fact that it appears on some of the polling showing that more and more Americans may be changing their driving habits because of the high price of gas.
So, when we talk about changes, we talked about maybe driving a little bit less or what about just a complete change, a decision to go hybrid? A lot of people say that maybe they would do it but they want to make sure their car is still big enough for their taste.
This may be the answer right behind me. This is actually Chevy's -- folks at Chevy, they have the first full-sized hybrid SUV. And joining me now to talk a little bit more about that is Ed Peper. He is the general manager at Chevy. He joins me. Thanks for being with us this morning.
ED PEPER, CHEVROLET, GENERAL MANAGER: Oh, it's great to be with you.
CHETRY: You guys are rolling out the first one. Tell us exactly first of all how fuel efficient this one is compared to your normal model?
PEPER: It gets 50 percent better fuel economy. It's an amazing technology. This two mode system allows you to get city fuel economy of 21 miles per gallon which is the same as a four cylinder Camry mid- sized car. Incredible fuel savings. Yes, we're getting a look inside the hood.
Totally different look than if you pull this up in a conventional car SUV or car, you see the hybrid technology around here. Not sure what all of it does. But the bottom line is you got something , fascinating. The first 30 miles when you drive that's all electric, and then it switches over to a gas-electric combo?
PEPER: That's exactly right. It comes with a 300 volt battery. It's very, very sophisticated system, and it's primarily designed to give Americans the choice that they want to have. They can still get a big utility vehicle that you know, totals up to 6,200 pounds and can cart kids and things and their stuff and still get great fuel economy, which is really important.
CHETRY: How much more are they paying off the top to get this versus the regular SUV?
PEPER: Not very much more. It's really within the range of our prices at Chevy. For Tahoe, they range from 36 to 56. It starts at about $50,000. It's right in there price -- their price range. And you know, probably about $4,000 to $5,000 more which isn't a lot for a system that's this advanced.
CHETRY: All right. Let's take a drive and we'll talk a little bit more about fuel economy. When you talk about wanting to save money, you only -- you don't have to fill it up -- conventionally get to fill up twice as often as you have to fill this guy up. So, basically, you've been paying $80 a week to fill up your car, you can do that once every two weeks?
PEPER: Yes, how would consumers like to cut their fuel costs in half?
CHETRY: Don't feel obligated to look at me because I know we're going to spin around the circle a couple of times here at Columbus Circle and just see how it rides. Would anybody notice if they were inside this car I'm driving a hybrid in terms of pickup, in terms ever going fast and get a lot of pickup in the car?
PEPER: Naturally, the pick up from zero to 30 miles an hour is really, really quick. And you will notice it's so smooth in terms of shifting. It's a really fun vehicle to drive.
CHETRY: All right. Tell me a little bit about demand. Had this taken off with consumers?
PEPER: It has. We just started selling it this month. We got right now about 500 of them sold already. We're doing it on a sold order basis, and there are cities right here like New York, Mayor Bloomberg, they would like to put these vehicles in the city service as well because it saves so much fuel. It's great for the economy and still can do all the things that a large utility can do.
CHETRY: What about people who aren't just concerned about gas prices but say I want to make sure what I'm doing is good for the environment? How about emissions?
PEPER: Emissions are very, very good. And certainly reducing our dependence or foreign oil and cutting greenhouse gas emissions, extremely, extremely important for us and this vehicle does that very, very well.
CHETRY: Hey it drives nice. There's still nothing we can do about New York city traffic or getting cut off on the roads. Right, that's how it goes. Ed Peper, general manager of Chevy. Right outside Time-Warner Center this morning in the hybrid SUV. Thanks for joining us.
PEPER: Oh, it's great to be with you. Thanks for letting me be on the show today.
CHETRY: Sure.
MARCIANO: Final "Quick Vote" check. Today, we asked would you buy a hybrid vehicle? 72 percent said yes, 28 percent said no. To all who voted we thank you.
Kiran took a little spin around Columbus Circle in an SUV hybrid. That didn't break any speed barriers down there but how did it ride? It rode pretty well?
CHETRY: Hey, yes. You can add me to it, 73 percent. It just felt like a normal SUV. So, yes, it was. It was pretty cool, Rob. So here it is. And if you'd like to find out more, you can also go to our Web site as well. Meanwhile, great working with you. See you back here tomorrow.
MARCIANO: Yes.
CHETRY: CNN NEWSROOM with Tony Harris and Heidi Collins starts right now.
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