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College Campus Thrives in the Heart of War; U.S. Death Toll Reaches a Grim Milestone; Olympic Torch Ignites Controversy

Aired March 24, 2008 - 09:00   ET

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


TONY HARRIS, CNN ANCHOR: Hi, everybody. I'm Tony Harris.
HEIDI COLLINS, CNN ANCHOR: Hi, everybody. I'm Heidi Collins.

Watch events come in to the NEWSROOM live on this Monday morning. It's March 24.

Here's what's on the rundown. Grim marker. The U.S. military death toll hits 4,000 in Iraq. We have reports from Baghdad and the Pentagon.

HARRIS: They made their living at sea. Four fishermen killed when their ship sinks off Alaska.

COLLINS: And a new offer for a failing investment house. Will it boost investors' spirit? Tell you about it, in the NEWSROOM.

Issue No. 1 this morning and pretty much every morning, your money. That trip to the pump, still painful. Wall Street getting back to business minutes from now after a long holiday weekend. And the talk on the street this morning? A huge buyout looking a lot better for some of you.

First up, let's check those gas prices. AAA putting the cost of a gallon of regular at $3.26 this morning, down about a half cent since yesterday. Lundberg Survey says -- that same number or actually reports the same number. They say the price of gas jumped seven cents over the last two weeks.

We are looking for a surge in the Dow when the markets open in less than 30 minutes. Futures are way up and investors are certainly crossing their fingers. I know you are, too.

One reason for the optimism? A better price may be in the works for investment bank Bear Stearns. Five times better according to "The New York Times." The paper reports JPMorgan Chase is trying to calm down Bear Stearns' investors while keeping the government's blessing. We're watching, of course, for any developments there.

Keep watching CNN, in fact, all this week our money team has had a special report on "Your Money." It's called "ISSUE #1: THE ECONOMY." You can watch today at noon Eastern, only on CNN.

HARRIS: Getting back to business on the campaign trail.

Hillary Clinton is in Pennsylvania today. She is scheduled to make what's being call a major policy speech on the economy, next hour. We will be keeping an eye on that for you.

Today is the last day for Pennsylvanians to register to vote in the April 22 primary.

Barack Obama is off the trail today. He is taking a few days vacation.

John McCain continues his busy schedule back in the U.S. after a week-long trip to Europe and the Middle East. Today McCain heads to California for an afternoon town hall meeting near San Diego and a fund-raiser.

COLLINS: Let's take a moment to find a little bit more about Senator Clinton's Pennsylvania push now, and today's so-called major policy speech.

CNN's Jim Acosta is aboard the CNN Election Express in Philadelphia this morning.

So Jim, tell us what you know about what Senator Clinton is going to be talking about today.

JIM ACOSTA, CNN CORRESPONDENT: Well, we don't know so -- too much so far, Heidi. We know that this is expected to be a major policy address, is what her campaign is calling it, on the economy, and she knows this is an issue that can rev up her base of support in Pennsylvania with the primary coming up on April 22.

And this state suffering some huge losses in the manufacturing sector. She is hoping that the speech on the economy and a continued focus on the economy will rev up those blue-collar white voters in this state.

That is a sliver of the electorate that many political analyst say are in her corner at this point and she needs to keep them in her corner. She hopes to win handedly on April 22. She want to beat Barack Obama by a wide margin in this state, because it's all about delegates and it's all about at the end of the day, not the end of this campaign, she's hoping to at least be able to say that she was able to make up some ground with a popular vote. The overall popular vote, across all of these states -- Heidi?

COLLINS: Yes. Certainly this is a big contest. In fact, Hillary Clinton has led now in the polls in Pennsylvania. Is there enough time for Barack Obama to try to turn things around a bit?

ACOSTA: Well, I think there's plenty of time. As we noticed last week, he started the week with that controversy regarding his former pastor, Jeremiah Wright. He gave that major speech on race relations. It was a historic speech, even though many public opinion polls show that he had taken a hit in those polls among many voters.

Nationally he was shown as taking a bit of a dip and finishing behind Hillary Clinton in many of those national polls. It'll be interesting to see, and both campaigns will be watching this week, because many of those public opinion surveys that have been taken since that policy speech, were probably conducted late last week, and perhaps early this week we'll see whether those opinion polls, taking into account that speech, might show some sort of recovery on his part.

As for Pennsylvania, this is a very difficult state for him to win. He's pretty far back in the polls, according to the polls we're see sewing far, but as we know with this campaign, you know, a week can be a lifetime in politics, and Barack Obama counting on that as these days move forward -- Heidi.

COLLINS: Sure. And in fact, today is the day that Pennsylvanians actually have to register, right?

ACOSTA: That's right. All those Pennsylvanians who have been procrastinating, they need to get out today. Today is the deadline. And from what we understand over the weekend, both campaigns were out in force registering people to vote in this state, and with -- there have also been some reports out there indicating that the Barack Obama campaign has been going after Republicans and independents, trying to get them to register them to vote for him in this upcoming Democratic primary.

So it's interesting to see a lot of people will be looking at the numbers, when it all is counted up after today whether there was a big increase in people registering to vote in this state. The early indications are that those numbers are up significantly -- Heidi.

COLLINS: All right. Interesting. We will be watching, of course.

CNN's Jim Acosta in Philadelphia this morning.

Thank you, Jim.

Stay with CNN for live coverage on Senator Clinton's speech on the economy. It will be coming your way at 10:00 a.m. Eastern.

HARRIS: Also making news this morning, Iraq, a somber milestone. The U.S. death toll has reached 4,000. A big question remains unanswered.

CNN's Kyra Phillips is on assignment in Baghdad.

Kyra, good to see you. Tell us, if you would, about the latest spate of violence.

KYRA PHILLIPS, CNN ANCHOR: Well, Tony, I don't know if you remember this day but I sure do. We were sitting in the newsroom talking about 1,000 U.S. soldiers, men and women, dying in this war, and now that number has increased to 4,000. And I remember the newspapers that day, and how they listed every picture and every name of every man and woman that had died thus far.

You'd have to take an entire newspaper now to show 4,000 people. And these aren't just numbers. We're talking about fathers, daughters, loved ones, friends, all dying in a conflict that has become very unpopular and very controversial.

I had a chance to talk with General Petraeus, the head of all military action here in Iraq, on the fifth anniversary of this war. I talked to him about the fact that deaths are down, attacks on U.S. troops are down, but still these streets are so deadly. This is what he told me.

(BEGIN VIDEOTAPE)

PHILLIPS (on-camera): 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 store, 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, CMDR., MULTINATIONAL FORCE-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, suicide death 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.

(END VIDEOTAPE)

PHILLIPS: And five years into this war, now going into the sixth year, Tony, you mention the general mention al Qaeda, and that is still a tremendous hurdle for U.S. forces and for the Iraqis that live here. As the general has said to me in the past, and he's repeated it a number of times in the past week, he's definitely not standing in the end zone doing a victory dance just yet.

HARRIS: Yes. You know, Kyra, with the death count of U.S. soldiers, where it is right now at 4,000 and we don't know how many Iraqis have been killed in the violence, I'm just wondering on a day like today, how are Iraqis and U.S. soldiers responding?

PHILLIPS: You know when it really hit me was yesterday, Easter Sunday. I actually followed a Christian -- Iraqi Christian family to church and then to home, and they talk so much about the resurrection of Jesus Christ, Easter being the holiest day for them.

New beginnings, the beginning of spring, wanting harmony and love, and then that number, the 4,000 number hit actually on Easter Sunday, and then a U.S. chaplain, who is giving a service to troops, Tony, on Easter Sunday, the same message, the same feeling.

He made a really powerful quote, and -- towards the end of the service, and he was talking about the death count both for Iraqis and U.S. soldiers and he said, "why does it seem that the good guys are always the first ones to fall?" And that really made an impression on me. HARRIS: Yes. I want to let that thought sort of linger out there for a second.

Kyra Phillips in Baghdad for us. Kyra, great to see you. Thank you.

COLLINS: Trouble on the high seas this morning. Four people are dead, one person missing, after a commercial fishing boat sank off the coast of Alaska. The boat was about 120 miles west of Dutch Harbor when it started taking on water.

Reports of cutter trouble. This morning the U.S. Coast Guard is searching for that last crew member.

Capital Michael Inman spoke with CNN's "AMERICAN MORNING" a little bit earlier today.

(BEGIN VIDEO CLIP)

VOICE OF CAPT. MICHAEL INMAN, U.S. COAST GUARD: Coast Guard Cutter Monroe is on the scene searching and searched throughout the night, and at first light this morning, we will have a HH-60 Jayhawk helicopter coming out of St. Paul to search the area for about probably five to six hours, and we'll look at that, our results at that point and see where we stand.

(END VIDEO CLIP)

COLLINS: The Coast Guard says 42 crewmembers in lifeboats were rescued from the frigid water. Meanwhile, news is spreading to the relatives of those who died.

(BEGIN VIDEO CLIP)

AMY ROMAN, UNCLE DIED IN SHIP SINKING: My other uncle had called his family down in San Diego and told them that they've pulled my uncle from the boat, and -- he was dead, ultimately he died how he wanted to. It you're a fisherman you want to die out at sea. You live to fish. This is -- if you're a true fisherman, this is how you want to go.

(END VIDEO CLIP)

COLLINS: The Coast Guard says it is not clear at this time what caused the boat to sink.

HARRIS: Cleaning up and waiting for more trouble to come. It is a muddy, muddy, muddy, muddy mess in Missouri and Arkansas this morning. There was a flash flood watch for areas along the White River, in the eastern part of Arkansas. This was the scene in Randolph County yesterday. The Black River levee busted in three different places and they're pumping out in Eureka, Missouri. Boy, we showed you a lot of pictures out of Eureka late last week.

The Merrimack River finally crested over the weekend. The swollen water waste submerged hundreds of homes. COLLINS: Let's go ahead and check in Rob Marciano who is standing by now to tell us a little bit more about where things stand.

Rob, any relief for these folks today? We know it's going to take a while, of course, for those waters to go down on the sea if you?

(WEATHER REPORT)

COLLINS: Did you just invite us to Southern California?

ROB MARCIANO, AMS METEOROLOGIST: I did.

COLLINS: Because we're ready. Right?

HARRIS: Don't need much of an invitation, Rob.

MARCIANO: No. We'll take Tony's private jet.

HARRIS: Well, there you go.

COLLINS: I love his private jet. It's so nice.

MARCIANO: Exactly.

HARRIS: The G4?

COLLINS: Yes.

HARRIS: Or the G5. OK. Let's do it.

MARCIANO: Warm her up.

HARRIS: Thank you, Rob. Thank you.

COLLINS: Thank you, Rob. We'll see you later.

HARRIS: And still to come, struggle over a settlement.

(BEGIN VIDEO CLIP)

JIM SHANK, SUED BY WAL-MART: My idea of a win-win, you keep the paperwork that says you won and let us keep the money so I can take care of my wife.

(END VIDEO CLIP)

HARRIS: A husband fighting Wal-Mart over his wife's medical bills.

(COMMERCIAL BREAK)

COLLINS: Welcome back, everybody. I'm Heidi Collins. You are in the CNN NEWSROOM.

Customers at a New York restaurant possibly exposed to typhoid fever. Elizabeth Cohen looks at the risks.

(COMMERCIAL BREAK)

COLLINS: A typhoid fever scare at a Long Island restaurant. Health officials in New York say a food handler tested positive. More than 100 people who ate there now could have been exposed.

Medical correspondent Elizabeth Cohen is here with a little bit more on this.

You know when we hear about typhoid, we often think of Typhoid Mary, like, way back in the 1900s, right?

ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: Right. Exactly. But you know what? It still exists and people forget about that.

COLLINS: Yes.

COHEN: Twenty-one million people all over the world have typhoid every year and yes, it does happen in the United States. There are about 400 cases per year.

COLLINS: Lately.

COHEN: You don't hear much about it, but 400 cases per year and 75 percent of those people get it while traveling abroad, because it does happen so often in other -- in more developing parts of the world. Now there are antibiotics, unlike in Typhoid Mary's time. There are antibiotics that can get to typhoid really well and you can also get vaccinated against typhoid if you think you're going to be traveling.

COLLINS: OK. But, you know, here in the U.S., I mean, like you said, it's a very strange thing and this person was a food handler, so the question becomes: how many people did he or she, you know, serve food to and is it dangerous that they could be exposed to it?

COHEN: Oh absolutely, because typhoid can be carried easily through food. So if that person didn't wash their hands after using the bathroom...

COLLINS: Yes.

COHEN: ...it could really be a big problem. And so what they're telling people is if you ate at this Mama Sbarro's restaurant in Hicksville, New York the weekend of March 14th, you want to be aware of the symptoms. And so those symptoms include a fever of 103 to 104 degrees, weakness and stomach pain.

Now when you look at that you might think, wow, well, that's --

COLLINS: Yes.

COHEN: There are many illnesses that have those. The only way that they can really know if you have typhoid fever is to actually do a lab test. They actually do a culture in a lab test. COLLINS: OK. So you got get in right away and get that done?

COHEN: Right. It you ate at that restaurant that weekend, you have those symptoms, you definitely want to go see your doctor.

COLLINS: March 14 weekend.

COHEN: Yes.

COLLINS: All right, Elizabeth Cohen, thanks so much.

COHEN: Thanks, appreciate it.

HARRIS: Hey, you know, we're standing by, waiting for the president to make some comments this morning. Before the Annual White House Easter Egg Roll about 22,000 tickets had been sold for this year's event where the president does make those comments expected in the next couple of minutes. We will bring those to you right here in the NEWSROOM.

Still ahead, parishioners gather together for the first time since Hurricane Katrina.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MAN: We decided that we weren't going to let the devil beat us to the porch.

(END VIDEO CLIP)

HARRIS: Rebirth of a church on Easter Sunday.

(COMMERCIAL BREAK)

COLLINS: We are awaiting this lovely annual event. Look at this. It's the big crowd at the White House for the Easter Egg Roll. You know, this has been going on since 1878. President Hayes put it in action, if you will. Of course, that means it needs to be nice weather because they don't let the kids go out there...

HARRIS: Yes.

COLLINS: ...when it's pouring down rain. But apparently, like were you saying, Tony, 22,000 some odd tickets have been sold and parents usually start lining up like Friday afternoon, I think?

HARRIS: Yes.

COLLINS: Over the weekend? Tenting, trying to get to the south lawn of the White House. This event expected to happen at any minute. So we're going to bring that to you when it does happen. The president will kick things off way loud whistle, I guess. We'll watch.

HARRIS: Double struggle. A husband dealing with the pain of wife's disability while fighting a megastore over money for her care. CNN's Randi Kaye reports.

(BEGIN VIDEOTAPE)

DEBBIE SHANK, INJURED IN AUTO ACCIDENT: And if I die, (INAUDIBLE).

RANDI KAYE, CNN CORRESPONDENT (voice-over): Debbie Shank remembers an account in German but she has no idea what she had for breakfast or what my name is minutes after meeting me. Debbie has no short-term memory.

In May of 2000, a semi-truck plowed into her minivan on this Missouri highway. Debbie's brain took the brunt of it.

JIM SHANK, HUSBAND OF DEBBIE SHANK : It came through her window and probably hit her head.

D. SHANK: I don't remember.

KAYE: Today she lives in a nursing home. Jim Shank works two jobs to help pay the bills and his bank account may soon take another hit.

(on-camera): Eight years ago when she started stocking shelves at this Wal-Mart near her home, Debbie signed up for the company's health and benefits plan so she was covered and her family says the bills were paid promptly. What Debbie didn't notice, her husband says, is a tiny clause in the plan's paperwork that says Wal-Mart has the right to recoup medical expenses if the employee also collects damages in a lawsuit.

(voice-over): In 2002, the Shanks settled with the trucking company. After legal fees, $417,000 was put in a trust for Mrs. Shank's care. The family's lawyer says he told Wal-Mart about the settlement. Then in 2005, Wal-Mart's health plan asked for its money back and sued the Shanks for about $470,000 -- money it had paid to cover Debbie's medical bills.

The court ruled in Wal-Mart's favor.

(on-camera): The fact is, Wal-Mart isn't doing anything wrong here. It is their legal right to recoup this money.

J. SHANK: They are quite within their rights but I just wonder if they really need it that bad?

KAYE (voice-over): We tried to ask Wal-Mart, why go after the money? The company's net sales third quarter of 2007 were $90 billion.

A Wal-Mart spokesman, who called Mrs. Shank's case unbelievably sad, told us, "Wal-Mart's plan is bound by very specific rules. We wish it could be more flexible in Mrs. Shank's case, since her circumstances are clearly extraordinary, but this is done at a fairness to all associates who contribute to and benefit from the plan."

(on-camera): Do you think Wal-Mart should make an exception for your family?

J. SHANK: My idea of a win-win, you keep the paperwork that says you won and let us keep the money so I can take care of my wife.

KAYE (voice-over): If Wal-Mart's health plan gets the money back, Jim says he won't be able to pay for his wife's care or his own. He's recovering from prostate cancer. He may lose his car and he won't be able to afford to send his youngest son to college.

J. SHANK: Who needs the money more? A disabled lady in a wheelchair with no future whatsoever? Does she need it or does Wal- Mart need $90 billion plus $200,000?

KAYE: The Shanks' lawyer says Wal-Mart is entitled to only about $100,000. Right now about $277,000 remains in the trust, far short of what Wal-Mart wants back.

J. SHANK: That's what she'd gotten for Christmas.

KAYE: Last year Jim divorced Debbie so she could get more money from Medicaid.

(on-camera): The trauma to Debbie's brain was so severe Jim says she won't remember we were here visiting her. In fact, she doesn't even remember the accident that put her here. She's in a private room for now, due to severe mood swings and a tendency to scream, all related to her injuries. But she may not be able to afford her own room much longer.

(voice-over): Last summer the Shanks appealed the ruling in Wal- Mart's favor and lost. One week later, another terrible loss. Their son, 18-year-old Jeremy, in Iraq just two weeks, was killed. Debbie went to the funeral, but doesn't remember her son is dead.

D. SHANK: What?

KAYE: When reminded it was as if she was hearing it for the first time.

One final push is underway. Jim is petitioning the U.S. Supreme Court to hear Debbie's case. What's left of Debbie's trust will remain frozen as the battle rages on.

Randi Kaye, CNN, Jackson, Missouri.

(END VIDEOTAPE)

COLLINS: Boy, tough story there.

We are now joining the White House Easter Egg Roll festivities, listening to the last portion of the national anthem. Let's listen.

HARRIS: This is the Disney kids. Is it the Jonas Brothers? Yes. The Jonas Brothers from the Miley Cyrus movie there.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We are sure glad you're here. We welcome you to the Easter Egg Roll. Pretty soon, after a few remarks, I have the honor of blowing the whistle to start the Easter Egg Roll, but we've got a lot of other people are going to make sure today is a special day.

We want to thank all our volunteers who made this event possible. We thank our -- yes, there you are. We thank our readers, for you, Dallas Cowboy fans. It is a great honor to welcome Troy Aikman here to be one of the readers.

We want to remind you that we're dedicating today's Easter Egg Roll to our clean oceans and there's a booth there where you can find out how you can contribute to make sure that we're environmentally sound stewards of our oceans. Ocean conservation is an important aspect of a good public service and is certainly something that Laura has on her mind as she comes up to address you.

So now it's my honor to welcome the first lady of the United States, my dear wife, Laura Bush.

LAURA BUSH, FIRST LADY OF THE UNITED STATES: Thank you, darling. Welcome, everybody, to the White House Easter Egg Roll. The 2008 Easter Egg Roll. This event is one of the happiest traditions on the White House lawn. It's always fun to see the south lawn filled with children. Thank you for coming, and I'd especially like to thank our entertainers, our readers, our volunteers and our special guests.

And two of the special readers today are my mother-in-law, Barbara Bush and my daughter Jenna. So be sure and listen to them. Two very famous American children's writers and illustrators -- oh, here's Jenna and Barbara -- Rosemary Wells and Nancy Tafuri reading in the reading nook, so look to see when you can stop at the reading nook to see them.

And also members of the president's Cabinet will join us. They'll be our special readers and you might meet some of your favorite book characters on the lawn as well, like Mickey Mouse, who's returning to the White House Egg Roll for the first time since the 1980s. So thank you, Mickey, for joining us today.

Like the president said, our theme today for the Easter Egg Roll is ocean conservation. I invite all of you to stop by the Ocean Conservation Education area on the lawn to learn what you can do to make sure we keep our oceans clean and healthy for fish and other ocean life. The ocean artist, Wyland, is here to teach us how to take some of the beautiful animals that live in our seas.

I'd also like to welcome the volunteers who are here today from organizations like Ocean Conservancy, Keep America Beautiful, and Take Pride in America. Boys and girls have donated their time to help preserve our natural wonders for future generations.

Thanks to all of the volunteers and the staff who are working so hard to make this event a success, especially Amy Allman, in the White House visitors' office who put this great event together.

OK, now we're ready to start the Easter Egg Roll. President Bush and I wish each one of you good luck on the egg roll. Welcome to the White House, everyone and Happy Easter.

COLLINS: So there you see the president and the first lady going through the crowd there. Again -- I think we told you earlier about 22,000 tickets were sold to the annual Easter Egg Roll. The president already took that picture with the Easter bunny. You see him there. It was a pretty good one, too.

He's going to heading out, my understanding is, to blow the whistle to get the whole thing rolling. No pun intended. Also some readings that they're going to be doing and here's Mr. Bush now.

(BEGIN VIDEO CLIP)

BUSH: On you mark, get set, are you ready?

(END VIDEO CLIP)

COLLINS: And they're off! They're hard boiled, yes! We're going to have a lot of broken eggs, as they're whacking them around there on the south lawn of the White House. Children down there, hands and knees there. That's always an interesting shot for me, anyways, seeing the leader of the United States of America standing right next to a guy with some seriously buck teeth and big ears.

HARRIS: Leader of the free world and all.

COLLINS: Yes. Something like that. Also we should clarify, I think I've said that. The tickets were sold. They are not sold. They are handed out first come, first serve. So everybody has a pretty good chance. And that is why they line up so early, several days in advance of this event. This really been going on since -- what do we say? 1878? I think that's right? Yes, 1878.

So we'll keep our eye on this. All the cute kids there bundled up pretty good, too. Looks a little chilly there in Washington, D.C. There you have it. The White House Easter Egg Roll. Fun there.

We want to move on to this story now. Baghdad University, a college campus, in the heart of war. We'll tell you why some young people there are star students of American politics.

(COMMERCIAL BREAK)

HARRIS: And welcome back, everyone, to the CNN NEWSROOM.

I'm Tony Harris.

COLLINS: Hi there, everybody, I'm Heidi Collins.

We want to take a quick look at the opening bell this morning. It happen just a couple of minutes ago. We were showing you the Easter Egg Roll at White House, which is pretty cute looking at some of the children there.

This might be pretty cute today, too. We're not so sure, but the futures are headed higher, we're told. So we're going to be watching the Dow Jones Industrial Averages which right now are to the positive by about 77 points. You see it there. NASDAQ, I understand, is also up. I'm watching, there you go, about 18 points or so. So we will be watching that and talking business coming up a little bit later in the show.

The Iraq war, the U.S. death toll, reaches a grim milestone -- 4,000 American forces have now died in the war. That threshold was reached yesterday when four U.S. soldiers died in a roadside bombing in Baghdad. The conflict marks its fifth anniversary just a few days ago and public debate remains volatile.

Yesterday in Chicago a half dozen protesters interrupted the cardinal's Easter mass. They yelled their opposition to the war before squirting fake blood on themselves and parishioners. They're due in court today.

COLLINS: The Iraq war stoking passions among U.S. presidential candidates, that's for sure. And watching from afar, young Iraqis living amid the bloodshed. CNN's Kyra Phillips is in Baghdad for us this morning.

Kyra, the college students, they're actually following U.S. politics pretty closely?

KYRA PHILLIPS, CNN ANCHOR: You'd be amazed how much they know, too, Heidi. As a matter of fact, during the interview process, during the class, they started asking me all these hard-hitting questions that I said, OK, wait a minute. We'll talk after we do this story, but I want to hear from you.

And actually this is the same class, the same professor that we visited last year. They were talking about comparisons between the Vietnam War and the war in Iraq. But when we got there, three explosions happened just outside the classroom. So it changed our whole discussion. So we were eager to go back, see this classroom again, see what they were talking about and visit our favorite professor.

(BEGIN VIDEOTAPE)

PHILLIPS (voice-over): They literally risk their lives to get here. Young Iraqis who brave car bombs and bullets to study at the University of Baghdad.

PROF. ABDUL AL-JABAR, BAGHDAD UNIVERSITY: The real concern from any president, either Hillary Clinton or Obama or McCain, how to provide this security and democracy to the simple man.

PHILLIPS: Dr. Abdul Al-Jabar is teaching a generation that has known nothing but war.

DOUNYA ALI, BAGHDAD UNIVERSITY STUDENT (through translator): I was born in 1986. And since I came into this life until this moment, I only see war. Now, I don't want to grow old in this war.

PHILLIPS: I hope not. Dounya Ali and her classmates talk about who will be the next U.S. president? And while every day Iraqis discuss politics out on the street, it's a much deeper discussion for these students. Political science is their major.

(on-camera): So Shamel, tell me why you're following the elections?

SHAMEL KAMEL, BAGHDAD UNIVERSITY STUDENT (through translator): Because of the U.S. troop presence in my country.

PHILLIPS: Are you looking more at a Democrat or a Republican?

KAMEL: I can tell from history that the Republicans have been in power enough. There is bitterness because of these wars. So I believe the other choice of a Democrat is far better for us.

PHILLIPS: So do you think Hillary Clinton or Barack Obama is more interesting?

KAMEL: For the first time we see a strange phenomenon. A woman and a black man competing as candidates. It's excellent and I'm with Hillary.

PHILLIPS: Why Hillary?

KAMEL: A woman should have her chance at American politics. And I think her policy is against war and we've had enough to wars and tragedies.

PHILLIPS: I find that interesting. An Arab man supporting a female for president?

You said were you supporting McCain. Why?

AHMED ALI, BAGHDAD UNIVERSITY STUDENT (through translator): I found out through McCain's political speeches and through his campaign, he is a strong man. And has enough experience regarding our interests. A strong leader with a firm policy in Iraq will help take Iraq out of crisis, including the deterioration of security.

PHILLIPS (voice-over): Almost every students here tells me they're frustrated.

ZIYAD ALI HUSSEIN, BAGHDAD UNIVERSITY STUDENT (through translator): We haven't seen anything from the U.S. administration but blood, killing and a lack of security. I witnessed the period of Bush's father and now his son. What have they done for the Iraqi people? I don't think the elections will change anything for Iraq. It will just be the same policy.

PHILLIPS: Bottom line, these students want change.

(on-camera): Do you think your government and your culture can handle a democracy, can create a democracy here? ALYA ABDUL KARIM, BAGHDAD UNIVERSITY STUDENT (through translator): I hope this will happen, but I don't think so. Not unless there is unity among all parties.

PHILLIPS: Why do you think there's so much disagreement? Is it religious?

KARIM: When we talk about our nation, we never feel there is a difference among us. We don't discriminate due to sect or religion. So now we wonder, where is this discrimination coming from? Someone is benefiting from keeping Iraqis separated.

PHILLIPS: So you think discrimination is hurting the democracy process?

KARIM: Democracy should not be what we are experiencing today in Iraq. Democracy is union. Our government should be agreeing on what benefits our country.

PHILLIPS (voice-over): And therein lies the heart of the problem, even five years after Saddam Hussein was toppled, Iraq's government is far from unified. And there's no escaping the fact that whatever happens in the U.S. in November will shake what happened to these students and their future for decades.

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PHILLIPS: And Heidi, just to talk more about that risk that these students and professors go through, since the war began. 200 professors have had to flee this university because of threats on their life. About 100 of them have been killed and more than 200 students have been killed since trying to go to school within the past five years.

So it takes a lot of strength to want to get an education here and the Professor Jabar, who you met in that piece, he now lives at the university and he had to send his son outside of the country.

COLLINS: Wow. Obviously, they are giving up a lot by way of their safety to go ahead and get to school. As you talked to them though, Kyra, I wonder what is their number one concern, when we're talking about politics?

PHILLIPS: By far, security. All of them talked about security. And also, too, Heidi, the majority of them feel that whomever does win the presidency in the U.S., that nothing will change, because within five years they feel that things just haven't moved the way they were told it would move forward by the U.S.

COLLINS: All right. CNN's Kyra Phillips coming to us from Baghdad this morning. Thank you, Kyra.

HARRIS: The Olympic torch has lit and controversy smolders. Today's lighting ceremony in Greece, two demonstrators ran on to the field, one managed to run behind the organizer. You see here. Beijing's upcoming summer game, the human rights group, reporters without borders was protesting China's human rights record. And specifically, its iron-fisted rule of Tibet.

Once the torch was lit, protesters again popped up along the route that begins the journey to Beijing. Protesters chanted free Tibet and shame on China. China hopes to prevent similar embarrassment when the torch arrives there.

COLLINS: In Pakistan, a former aide to assassinated opposition leader Benazir Bhutto will take over as prime minister. Yousaf Raza Gilani will be sworn in tomorrow. President Pervez Musharraf will issue the oath of office. His party's candidate for prime minister lost in a landslide.

HARRIS: Immune to a struggling economy, some retail stores see a spike in sales searching for better bargains, ahead in the NEWSROOM.

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HARRIS: Rising prices. Well, guess what? Many of you become better bargain hunters. That's good news for some stores.

CNN's Ed Lavandera takes a look.

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ED LAVANDERA, CNN CORRESPONDENT: Bad economy? Not inside this Costco Store.

UNIDENTIFIED FEMALE: Two thousand three hundred and fifty dollars and fifteen cents.

NAK-HE EVANS, COSTCO WAREHOUSE MANAGER: We don't think that's affecting us at all. Our members keep coming and buying from us.

LAVANDERA: Sales at Costco have increased 12 percent in the first half of this fiscal year. It's where penny pinching shoppers find bargains.

UNIDENTIFIED MALE: We're getting value for a dollar spent.

UNIDENTIFIED FEMALE: I don't have to go to grocery store quite as often and it's just cheaper.

LAVANDERA: Wholesale clubs likes Costco and Sam's are a few of the silver linings in the struggling economy.

BRITT BEEMER, CEO, AMERICA'S RESEARCH GROUP: They are the only place where consumers can now go to save money both on food and fuel. And those are the two things consumers are most concerned about because of rising prices.

LAVANDERA: The handful of retail companies are actually making money these day, like Costco, are doing so against an economic backdrop that looks less than rosy. The International Council of Shopping Center predicts that in 2008, more than 5,700 retail stores will close nationwide. The highest number since 2004. But it's not just deep discount stores doing well, some luxury retailers like Tiffany's are still cashing in. Analysts say the key to success in these times is having just the right product to sell. That's why you see stores like Anthropologie and its unique items. J. Crew, high fashion look at lower cost. Drug stores pumping out prescriptions and even Pet Smart reporting growing sales.

UNIDENTIFIED MALE: I don't think this lab is going to want to eat any less, just because the economy is slowing down.

UNIDENTIFIED FEMALE: How can you let it affect them? They rely on you, for their stability and their food. They have to eat.

BEEMER: Every retailer have three words stamp in their forehead, its merchandising stupid. Because if you've got the right merchandising, consumers will find you no matter where you are. And I think that's why there's always star performers even in tough economic times.

LAVANDERA: If you're making money, you must feel like one of the lucky ones.

Ed Lavandera, CNN, South Lake, Texas.

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HARRIS: Again, we want to encourage you to keep watching CNN all this week. Our money team has had a special report on your money. It begins at noon today. "ISSUE #1," the economy, watch today at noon Eastern right here on CNN.

COLLINS: People chased from their homes in a small town's economic future on the line. After a meat packing plant goes up in smoke.

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HARRIS: Take a look at these pictures, workers at an Arkansas Meat packing plant being told to stay home this morning. A fire triggered explosions and an ammonia leak at this Cargill plant in Booneville. Everyone got out OK. That's the great news here. But the chemical leak forced nearly 200 people from their homes and destruction could also provide a major economic impact to the region. Cargill is the town's largest employer.

COLLINS: Vice President Dick Cheney half way around the world trying to build diplomatic bridges with Washington. This morning he arrived in Turkey to shore up White House relations with a key U.S. allies. His trip comes amid heightened tension.

Turkey has been striking at Kurdish rebels across the border in Northern Iraq. Some in Washington fear that could destabilize Baghdad's U.S. past government. Over the past couple of days, the vice president met separately with Israeli and Palestinian leaders. He says the militant group Hamas is trying to torpedo a lasting peace between the two groups. HARRIS: The battle for Pennsylvania. Senator Hillary Clinton back on the campaign trail and ready to give what's being called a major policy speech on the economy. See it here in the NEWSROOM in the 10:00 a.m. Eastern hour this morning.

But first, dreaming about walking away from your job and doing whatever you want? Christine Romans is "Right On Your Money" with advice on retiring early.

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CHRISTINE ROMANS, CNN CORRESPONDENT: Alan Castro enjoys his vegetable garden. It's a passion in his early retirement.

ALAN CASTRO, RETIRED IN HIS 40S: You only have to cook them, they're good.

ROMANS: While in college, Castro and a friend cooked up a business reselling textbooks.

CASTRO: Books were going in landfills. We were taking those books away from the landfills and reselling those and started basically growing a whole industry from that.

ROMANS: The company grew and last year a competitor bought it, allowing Castro to retire at age 44. He says the business top into a niche as a one-stop shop for educators.

CASTRO: I was getting them to think like a college student, buy a used book first.

ROMANS: He also gave back, travelling to the Philippines and Kenya donating books to villagers and helping fund a school. Giving back is one of the keys to his success. Castro says be practical and down to earth.

CASTRO: Have a good account. Nobody stand on paper, don't fool yourself. And always try to do things that humble yourself and take you down a peg.

ROMANS: Castro says if you're trying to build wealth, don't put all your eggs in one basket.

CASTRO: It's all a risk. Every time you make a dollar, you're going to invest another dollar and learning how to be disciplined not to take anything out.

ROMANS: For Castro, his next chapter is still being written but is willing to take risks to keep growing.

CASTRO: When I'm gardening, that's when the next idea will come. When I'm outside.

ROMANS: Christine Romans, CNN.

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