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American Morning
Tragic Milestone Reached in Iraq Overnight; Olympic Torch Begins Journey to China; Search for Missing Crew Member
Aired March 24, 2008 - 08:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JOHN ROBERTS, CNN ANCHOR: The tankers were in a parking lot in a tiny Pakistani border crossing town of Torkham. It's right there at the end of the Khyber Pass just as it goes into Afghanistan there. The militants detonated an improvised explosive device under one tanker. It triggered a massive chain reaction. At least 60 people are hurt from that attack. Al Qaeda and Taliban fighters have hit that same area before.
Al Qaeda's second in command apparently making a new request for violence this morning. An audio message posted online last night calls on Muslims to attack Western interest in defense of Palestinians in Gaza. It said to be from Ayman al-Zawahiri. But the speaker's identity has not been confirmed. A similar message was released last week from Osama Bin Laden.
Meanwhile, Vice President Dick Cheney arrived in Turkey within the last hour. He is there to talk about Turkey's incursions into Iraq to fight Kurdish rebel groups. He just left Israel after pushing for Palestinian-Israeli peace. Mr. Cheney says Hamas with support from Iran and Syria is trying to torpedo Israeli-Palestinian peace talks. Turkey is the last stop on his ten-day tour of the Middle East.
And tragic milestone reached in Iraq overnight. Four U.S. soldiers were killed in a roadside bombing in Baghdad bringing the total number of Americans killed in Iraq to 4,000 now. CNN's Pentagon correspondent, Barbara Starr, joins us now.
And Barbara, this milestone comes just as General David Petraeus is scheduled to brief President Bush today on potential drawdowns of U.S. troops and whether or not the Pentagon can go ahead with this.
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, he is scheduled to brief the president indeed this morning, John. And President Bush is scheduled to come here to the Pentagon on Wednesday and hear recommendations from the joint chief of staff. Everybody putting their plans on the table for the next round of troop cuts in Iraq.
General Petraeus, by all accounts, will continue to recommend a so-called pause, if you will. That in July when the last of the so- called surge brigades, returns to the United States take a time-out, maybe four to six weeks, to see how the dust settles. How the security situation is looking on the ground before he makes any firm recommendations on additional troop withdrawals.
But this very emotional milestone of 4,000 Americans and countless Iraqis losing their lives in the war in Iraq, certainly will be one of the backdrops for all of that when Petraeus finally comes to Washington in person and testifies in early April on Capitol Hill. Testifies before the Senate Armed Services and Senate Foreign Relations Committees and, of course, members of those committees are Senators Clinton, McCain and Obama.
So, setting things up a bit for a political look at the situation in Iraq with the presidential campaign ongoing, of course -- John?
ROBERTS: You know, Barbara, we hear this public pronouncements about what to do regarding troop withdrawals but then there's also behind the scenes thinking is there any belief there at the Pentagon that after this four week pause, that General Petraeus is said to be favor that they may be able to continue a drawdown?
STARR: Well, to be clear, General Petraeus himself has said that there will, in fact, be more troop reductions in Iraq as long as the security situation permits. But what's so interesting, John, is at the same time they're talking about more troop cuts, more withdrawal.
The U.S. government is in a very private negotiation, of course, with the Iraqi government about a new status of forces agreement. A new security arrangement, if you will, to set the stage for how U.S. troops will continue to operate for years to come in Iraq.
So this is really settling in for a long-term arrangement on how U.S. forces will stay in that country, what their job will be, what they will do, and a new president coming in will have that to deal with, of course -- John?
ROBERTS: Barbara Starr for us this morning at the Pentagon. Barbara, thanks.
Also this morning, the Olympic torch is beginning its journey to China after a rocky start. This morning, the president of the Beijing Olympic Committee was speaking when a pro-Tibet protester ran up behind him and held up a black flag. Police quickly removed him and another man as well.
The torch was lit minutes later without further disruption. Activist seeking independents for Tibet say China's plans to carry the torch through Tibet would be quote "Adding insult to 50 years of blood-stained injury."
A Republican strategist and long-time rival of former New York Governor Eliot Spitzer claims that he helped exposed Spitzer's link to prostitution. In a November letter to the FBI, an attorney for Roger Stone wrote Spitzer spent tens of thousands of dollars on prostitutes. It's still unclear whether prosecutors knew about Spitzer's link to a prostitution right when Stone wrote that letter.
New York's new governor is facing new questions about alleged affairs and how he paid for hotel rooms for those trysts. This morning's "New York Post" says David Paterson routinely used taxpayer' money for the hotel rooms. The Post reports Paterson used his state issued credit card to pay for 13 hotel stays with some charges totalling more than $2,500. A spokesman for Paterson says he reimbursed the state for all personal expenses.
Detroit's mayor, Kwame Kilpatrick, will learn whether he'll face criminal charges this morning. Kilpatrick is accused of lying to cover up an affair with a staffer that was later revealed by text messages. Kilpatrick denied the relationship under oath. He could face charges of perjury, misconduct in office, and obstruction of justice.
Hillary Clinton is on the campaign trail today talking about issue number one, the economy. She'll speak in Philadelphia about two hours from now. She has rallies all across Pennsylvania today, four weeks before the critical primary there.
Barack Obama is again defending his spiritual adviser, the Reverend Jeremiah Wright. And Obama's church is coming to his defense. During Easter services, the new pastor of Trinity United Church of Christ did not shy away from the controversy.
(BEGIN VIDEO CLIP)
REV. OTIS MOSS, TRINITY UNITED CHURCH OF CHRIST: We are thanking you for this unique moment in history. All that we have gone through as a church, you are making us anew. The more pressure put on us, prepares us to come out as diamonds in this rough.
(END VIDEO CLIP)
ROBERTS: In a radio interview airing on Philadelphia radio this morning, Senator Obama defends the church saying, "This is not a crackpot church." And he also reminded listeners that Bill Clinton invited Wright to the White House when he was having his impeachment crisis.
And this programming note for you this morning. Governor Bill Richardson, a superdelegate and now Obama backer will be our guest just ahead in about nine minutes time at 8:15 Eastern.
Senator John McCain back on the campaign trail this morning after his tour of the Mid-East and Europe. McCain heads to California to raise money and look for support in a state that voted Democratic in the last two presidential elections.
And breaking news this morning. The search for a missing crew member lost when a fishing trawler sank off of Alaska's Dutch Harbor. Four crew members including the captain died when the ship, the Alaska Ranger sank. More than 40 crewmates survived. The Coast Guard does not think that weather was a factor. Earlier, I spoke to Captain Michael Inman of the U.S. Coast Guard stationed in Juneau, Alaska about the challenges that rescuers faced during the rescue.
(BEGIN VIDEO CLIP)
CAPT. MICHAEL INMAN, U.S. COAST GUARD: Ten-foot seas, 25 to 30 knots of wind. Sea temperatures at the time were probably 29 degrees. Air temperatures were in the mid-30s. So very challenging throughout the search. They also had rains, snow squalls that occurred. So as they lowered the rescue swimmers into the water to pick up people it was a real challenge for the crews.
(END VIDEO CLIP)
ROBERTS: Captain Inman went on to say that without a survival suit a person can last only a few minutes in those frigid conditions.
Well, the economy is issue number one for Americans. We've been talking about rising gasoline prices, a downed housing market, but despite all of that, Americans are surprisingly upbeat. Ali Velshi joins us now with the results of a new poll.
So what are people thinking?
ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: Well, this is interesting, because we've been polling a lot based on this issue number one, the economy. The biggest issue in the election. And we know Americans think the economy is issue number one. They know that inflation and gas prices are serious. Most Americans, more than 74 person, according to the CNN Opinion Research Poll, think that we're in a recession.
But here's an interesting thing. Little later on today, in about two hours, we're going to get new numbers on existing home sale. And that's a vast number of home sales in America. We asked whether the value -- what you think of the value of your home compared to when you bought it -- CNN Opinion Research Corporation.
Look what happened -- 82 percent say the value of their home is higher now than when they bought it. Eleven percent said it's lower. Then we put a timeline onto this and we asked people to tell us about the value of your home compared to five years ago. And here's what we got. Seventy percent said it's higher than it was five years ago, 18 percent say it's lower.
That's an important piece of perspective, because home prices while they've been going down for the last couple of years have, in fact -- they rose so much in the prior five years that if you bought your house five to ten years ago, you're probably in good shape.
Those who are suffering the most are people that have mortgages that are bigger than their homes. Mortgages that they can't afford because the rate is reset or if you bought in the last couple of years, particularly in certain areas that have taken a big hit. That's where you're feeling the pinch.
So just use all this now for perspective. This isn't the whole picture, but one part of the picture and a big one, home prices. So, many Americans are telling us their home prices are worth more than they were when they bought them.
ROBERTS: Do we have any idea of percentage of people who bought their homes say five years ago as compared to a year or two?
VELSHI: That's a good question. I'll look into that to sort of find out what this is affecting. It's a combination of downturn in the last couple of years and these mortgages. People who may not have lost value on their homes still can't afford the increased payments. So it makes it seem like the home is the center of this economic disaster. This is an interesting piece of news.
ROBERTS: All right. We'll see when it's going to shake out. Maybe there are indications that things may not last as long as people thought they would.
VELSHI: Keep your fingers crossed.
ROBERTS: Ali, thanks very much.
And be sure to join Ali, Gerri Willis, and the CNN money for "ISSUE #1." That's at noon Eastern all this week here on CNN. You're watching the most news in the morning.
Could this be the cure to cavities?
VELSHI: Nice.
ROBERTS: Yes. Could it possibly be? Could the Candy Man be teaming up with the dentist? Researchers say they have developed a new lollipop that prevents cavities. Is it for real or just a sweet dream.
James Carville compared him to Judas. Now Bill Richardson is here to fire back and tell us why he is endorsing Barack Obama, that's coming up next on AMERICAN MORNING.
(COMMERCIAL BREAK)
ROBERTS: Thirteen minutes now after the hour. He says the bloodletting has to stop in the Democratic Party. But Bill Richardson surprise endorsement of Senator Barack Obama has lead to more heated attacks over the weekend. New Mexico Governor Bill Richardson joins us now live from Santa Fe.
Governor, it's always good to have you on. Welcome to AMERICAN MORNING again.
GOV. BILL RICHARDSON (D), NEW MEXICO: Nice to be with you, John.
ROBERTS: So you've been a long time ally of the Clintons. You say that you're going to continue to remain friends with them. So the question is, why did you choose to endorse Barack Obama?
RICHARDSON: Because after being on the sidelines since I myself got out of the race and challenge Senator Clinton and others, I felt that Barack Obama is the best candidate to bring this country together. He has the judgment, the temperament, the patriotism, the strength to be a great leader. There's something special about him, John, that I saw out in Portland, Oregon.
It's my first Obama rally. Thousands of people, 10,000, with hope and enormous enthusiasm. There's something out there that he has that attracted me to endorse him. And you know, you've got to put these personal ties aside. What is best for the country? Who can bring this country together? That's why I made that decision.
ROBERTS: So you talked with Hillary Clinton about your decision on Thursday night over the telephone. What was that phone call like?
RICHARDSON: Well, it was heated. She was very gracious. She said she was disappointed. She asked me my reasons. I mentioned the race speech. I mentioned that Obama is somebody that's very good at bringing people together and this is what the country needs. That is was a very tough decision for me.
You know, I almost endorsed Senator Clinton right after President Clinton visited me in New Mexico to watch the Super Bowl. You know, he is very persuasive. So this was an agonizing tough decision because of my ties to the Clinton.
But the reality is that, you know, you've got to put that aside and do what's best for the country. And my worry now is this enormous fight between both of them. The divisiveness. The heated rhetoric. It's going to hurt us, and we need to stop this bloodletting before we get to the Democratic convention. And Unfortunately, I see no end in sight.
ROBERTS: And speaking of heated rhetoric, James Carville, who was not in the campaign or a paid member of it, but has been a long time supporter of Hillary Clinton, likened you to Judas on Easter week saying that you sold out for 30 pieces of silver. You called that gutter politics as I was watching that interview yesterday morning.
But I have a question for you. Did they offer you anything in return for your endorsement? Because some people have said that you would make a pretty effective running mate?
RICHARDSON: No. There was no offer of any position or campaign debt. Nothing, no. I just decided, Senator Obama had been calling me for a long time, as had Senator Clinton and President Clinton, and I just felt that it was the right time. That if I stayed on the sidelines in this enormous divisiveness between the two candidates, negativity, instead of talking about the war in Iraq, 4,000 killed, an economy that's falling apart, people not having health care, that maybe I'd make a small contribution.
I've always felt that endorsements of one politician to another don't mean much, and so I wasn't getting excited about doing an endorsement. But just what attracted me to try to do something was, one, Senator Obama's enormous capability as a leader. But, also, the fact that the campaign has gotten so bitter and we have to stop this bloodletting, because we need to get to the convention unified.
You know, John McCain is now going to California. Democratic territory to get votes and raise money. He is alone. He is not getting attacked and we're fighting each other. So we've got to end this.
ROBERTS: Yes. And he was just out there in Europe in the Mid- East as well looking -- at least, trying to look very, very presidential. And part of the significance of your endorsement here is that you are a superdelegate. And, of course, superdelegates will probably decide who the Democratic nominee is going to be.
But in February, in a "New York Times" interview here's what you said about superdelegates, "It should reflect the vote of my state. It should represent the vote my constituency."
Well, Hillary Clinton won New Mexico. So are you going back on what you said just a month ago?
RICHARDSON: No, no, I'm not, John. The reality is that it took two weeks. The vote was so close, so close, it ended up by less than 1 percent. I'm also western governor.
(CROSSTALK)
ROBERTS: She still won, though.
RICHARDSON: Well, yes, but John, you know, you can't get that technical about it. My point is that superdelegates -- you know, there's 800. I've said, there's too many. The vote should reflect what -- look, Obama is ahead in delegates. He's ahead in states. He's ahead in the popular vote. You know, he is 120 delegates ahead.
I think we need to eventually, and I'm not saying Senator Clinton should get out. She's ran a formidable race, but you know after Pennsylvania, after North Carolina and Guam and Puerto Rico, Kentucky, Oregon, some other important states, I think Democrats need to come together and say, OK, we can't continue this fight all the way to the convention. Let's come together.
ROBERTS: But hang on. I just want to go back and ask you about that again. You said it should reflect the vote of your state, should represent the vote of my constituency. She won. I asked you about that, you said let's not get technical?
RICHARDSON: John, it was like -- it took two weeks. It was very close. I mean, I have flexibility there. My God, I mean, if it had been decisive, I think you're making a point. But I'm also a western governor. Aren't I? I mean, you know that. So -- and I'm independent. I've held off until now, because I felt that right now the divisiveness is so strong.
ROBERTS: Right.
RICHARDSON: And I think Senator Obama, this speech of his reinforced my decision on race. That he's the guy can bring us together.
ROBERTS: All right. Governor Richardson, it's always great to talk to you. Thanks for coming on this morning.
RICHARDSON: All right, John.
ROBERTS: All right. Talk to you again soon.
Well, the number of Americans in Iraq killed reached 4000 overnight in just five years. So we want to know what you think about all of this. We've been asking that controversial question this morning's "Quick Vote."
Is the Iraq war winnable? Right now, 14 percent of you say, yes, it is. Leave the troops in as long as it takes -- 86 percent say, no, we should start pulling troops out now.
Cast your vote for us at cnn.com/am. We'll bring you a final tally in just about 35 minutes' time.
Well, here's something for you. Lollipops that are actually good for your teeth. Sounds like something the tooth fairy would try to promote. Elizabeth Cohen is here to explain.
Hey, Elizabeth.
ELIZABETH COHEN, CNN MEDICAL CORRESPONDENT: John, could a lollipop help prevent cavities? Well, we'll have all the facts for you when AMERICAN MORNING comes back.
(COMMERCIAL BREAK)
ROBERTS: Extreme weather to tell you about now. And flooding worries in Arkansas today. The Black River broke through a 60-year- old levee over the weekend. Volunteers and emergency workers had to plug it up with sandbags. The National Weather Service has got flood watches up across Arkansas today. Early estimates for flooding damage in the $2 million range.
And our Rob Marciano in the CNN Weather Center is tracking the extreme weather.
How likely is it, Rob, that they are going to see more flooding in Arkansas today?
(WEATHER REPORT)
ROBERTS: Well, good news for people with a sweet tooth. Researcher at UCLA claims to have invented, and here it is, a lollipop that he says can prevent cavities. Elizabeth Cohen is at our medical update desk for us this morning.
Elizabeth, this seems too good to be true. A lollipop that prevents cavities? You can tell your child, go ahead, eat a lollipop, it's good for you? How does it work?
COHEN: You know, I'm certainly not telling my children that, because that's not even what the product claims. Let me take -- I'm going to read to you right from this package what they say.
They say that these lollipops temporarily defeat the bacteria that causes cavities. And let's look at the actual study that they did. The company that makes these lollipops, they said people had two per day, and that they killed 80 percent to 90 percent of the bad bacteria that can cause cavities. But keep in mind, this study was done by the people who make the lollipop and they never published it.
So as far as we know, there's no independent review of this data. So the bottom line, do these lollipops actually prevent cavities? We don't know. They haven't done the studies to show that. And in fact, one independent dentist we talked to said this is an intriguing idea that licorice, which people talk about as having anti-bacteria capacities, it's an intriguing idea, but does it prevent cavities? Who knows? Nobody knows -- John.
ROBERTS: So there is licorice root in these candies. And you know, speaking of this idea, you know, claiming to prevent something, we saw what with airborne, they had to pay out $22 million for something that they had a product that would prevent colds, which it didn't.
But licorice root, taking it by itself, would it potentially defeat the bacteria and also, isn't there a risk for people who have high blood pressure in taking licorice root.
COHEN: Licorice root when used in certain forms, John, can actually be dangerous. And we asked the company about that. And they said we don't have that form of Licorice root in our product. So that's not a worry. But you asked about supplements. And it certainly would be easier to just pop a supplement and swallow it, than to suck on two of this a day, especially because they have a little bit of a medicinal taste.
But that really probably would not work because the licorice would just go right past your teeth and into your gums. When you suck on a lollipop, the Licorice hangs out longer near your teeth. But again, there's not a whole lot of hard evidence.
As a matter of fact, as far as we know, there's not any hard evidence that shows that these lollipops actually will limit the number of cavities that you or your children will get.
ROBERTS: I got to tell you, though, they don't taste that bad.
COHEN: No, they're not that bad. I think if you do a taste test, kids could pick out which was one was the semi-medicinal lollipop. Yes, they're not too bad.
ROBERTS: All right. Elizabeth Cohen for us this morning. Thanks very much.
COHEN: Thanks.
ROBERTS: New very telling numbers in the housing market coming up in just a couple of minutes. What will they suggest about which way our economy is headed?
And airline pilots packing heat. They are supposed to make us safer, unless a gun should actually go off in mid-flight? We'll have that story and more ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
ROBERTS: Welcome back to AMERICAN MORNING. Just crossing the half hour now. And this just in. Vice President Dick Cheney arrives in Ankara, Turkey. He's going to meet with the nation's president and prime minister to discuss Turkey's recent military operations against Kurdish rebels in Iraq. Cheney is winding up his tour of the Middle East during which he also visited Iraq and Israel.
We have been telling you this morning about a tragic milestone in Iraq. 4,000 U.S. soldiers have killed during the war with just past the five-year mark last week. Later on tonight, vigils with 4,000 candles will be held in several U.S. cities.
The Coast Guard still searching this morning for a crew member lost when a fishing trawler sank off the coast of Alaska. The Alaska Ranger sank early Sunday morning 120 miles west of Dutch Arbor in the Bering Sea. Four crew members including the captain were killed, 42 others rescued. Most of them were wearing survival suits.
This morning I spoke with Captain Michael Inman of the U.S. Coast Guard station in Juneau, Alaska about the search for the missing man.
(BEGIN VIDEO CLIP)
VOICE OF CAPT. MICHAEL INMAN, U.S. COAST GUARD: Coast Guard Cutterman Roe is on scene searching and searched throughout the night and at first light this morning we will have a HH-60 Jayhawk helicopter coming out to St. Paul to search the area for about probably five to six hours and we will look at that, our results at that point and see where we stand.
(END VIDEO CLIP)
ROBERTS: No word yet on what caused the sinking but crew members said, reported in their mayday a problem with the steering gear box and that there was intense flooding on that ship.
The family of one of the fishermen killed in the accident spoke out on Sunday.
(BEGIN VIDEO CLIP)
AMY RODMAN, NIECE OF DANIEL COOK: My one uncle had called his family down in San Diego and told them that they had 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)
ROBERTS: The trawler's owner say they are determined to find out what happened.
Thirty-two minutes after the hour. And Veronica De La Cruz here with other stories making headlines this morning.
Good morning, Veronica.
VERONICA DE LA CRUZ, CNN CORRESPONDENT: Hey, good morning, John. Good morning, Gerri.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Good morning.
DE LA CRUZ: Nice to see you there. And good morning to all of you.
Well, the Olympic torch was lit in Greece this morning, but the ceremony was not without controversy. The president of Beijing Olympic Committee was speaking when a protester calling for freedom for Tibet ran behind him and held up a flag. He and another man were quickly removed by police. The torch was lit minutes later without further disruption.
Tibet's government in exile in India claims 130 protesters are confirmed dead after protesting Chinese rule. Tibetan activist in Nepal today say police used bamboo sticks to break up a peaceful protest. More than 100 people were arrested including 20 monks and nuns.
The head of the International Olympic Committee Jack Rogge says there's no momentum growing for an international protest of the Beijing games.
Twelve firefighters are recovering this morning after battling a chemical fire in Anaheim, California. It broke out Sunday and quickly spread to three chemical storage tanks. Thirty-five business was evacuated as a precaution. No word on a cause.
And this is all that is left of a meat processing plant in Arkansas obliterated by several explosions there touched off by a fire that began in a freezer of the cargo meat solutions plant in Booneville, an ammonia leaked forced 180 people to evacuate nearby homes. We're going to have some video of that coming up.
In the meantime, a pilot's gun accidentally went off during a U.S. Airways flight this weekend. The flight from Denver to Charlotte landed safely, no one was hurt. The pilot was licensed to carry the gun as part of a TSA program. A TSA spokeswoman would not say how the gun fired but she did say, however, that passengers were never in any danger.
A stock to watch this morning. Bear Stearns shares surging are more than 50 percent right now on word that JPMorgan Chase made quintuple its offer for Bear Stearns. The new offer of $10 a share is intended to win over stockholders who vowed to fight the original $2 a share offer.
Finally a new week and more worry to tell you about at the pump. According to the Lundberg survey, a gallon of self-serve regular jumped to $3.26 on average. That is nearly seven cents higher over the past week and it breaks the record set last May. Right now, the lowest average price is $3.03 in Newark, New Jersey. San Francisco the highest, $3.66 a gallon. The price of gas in at least one Texas town, is pretty cheap. One station in Katy sold gas for under $2 a gallon this weekend. It was thanks to the generosity of the Parkway Fellowship Church. It bought 5,000 gallons of gas and gave town folks the discount.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Especially with the prices going up.
MIKE MCGOWN, PARKWAY FELLOWSHIP PASTOR: Right now, with gas as expensive as it is, this is especially important for people, because it hits the people where they live.
(END VIDEO CLIP)
DE LA CRUZ: In the course of three hours, the church pumped enough gas to save, get this - they saved drivers about $6,000.
ROBERTS: Stunning story, though, about the gun going off in the cockpit.
DE LA CRUZ: Yes. Really is scary.
ROBERTS: Do you take the airline on faith that passenger was never in danger? What if the bullet had gone through a window?
DE LA CRUZ: I know.
WILLIS: My thoughts exactly.
ROBERTS: Maybe we should investigate that a little bit more.
DE LA CRUZ: Yes. I think so.
ROBERTS: Thanks.
More now on issue number one, the economy. We're going to get the latest reading on the housing market coming up later on this morning. The National Association of Retailers will release its report on existing home sales. What's in the report and what could it tell us about the economy? CNN's personal finance editor Gerri Willis is here, and so what are we expecting today? Light at the end of the tunnel that maybe is an oncoming train?
WILLIS: Well, I wish we had light at end of the tunnel. I spoke with the National Association of Realtors chief economist, David Lereah, and he told me we'll have to wait, probably a little while, for great news. Here's what's going on, this is one of the most important pieces of information we get about the real estate market.
We get February existing home sales numbers, currently sales are on track to deliver total sales for the year of 4.89 million. At the peak, it was almost seven. You can see how much we've come down.
Look here at monthly existing home sales. And what you'll see is that we're at levels that are below where we were in the 2001 recession. Very disappointing. Inventories, meanwhile, if you're out there for the spring market, shopping for a new home. The good news, you're going to have lots of choices.
Inventories have doubled which is, you know, very good for home buyers, not good for home sellers and, of course, the price we've seen, the median home price down to 201,100 in January. We'll see where it goes in the release of today's number, John.
ROBERTS: Obviously, a lot of pain for people who are trying to, you know, trade houses or who are moving having to sell one house to buy another one. But good news for people I know, a lot of young people saying hey, maybe I can finally get into the housing market.
WILLIS: That's right.
ROBERTS: How are we going to know when this thing has bottomed out, and has turned around and is headed in the right direction?
WILLIS: Well, there are several things that you're going to look for. One, condo and co-op. That market is highly volatile, it goes down ahead of the general market, and tends to rebound ahead of the general market.
So, you'll definitely want to keep an eye on that. It will be the first to rebound. Mortgage rates typically fall, because that's one of the things that brings buyers in and we've seen a little bit of that already.
And here's a factor that insiders watch. Days on market, realtors always look at how long it takes to sell a home in a new marketplace. There is no national stats for this as it's really local, but it's something that you want to keep an eye on.
ROBERTS: I know some folks in the area where I live, whose homes had been on the market for almost two years now. So...
WILLIS: That's a long, long time.
ROBERTS: I can imagine the pain that they're feeling.
WILLIS: Got to reprice at that point.
ROBERTS: Gerri, thanks very much.
WILLIS: My pleasure.
ROBERTS: And be sure to join Gerri, Ali Velshi and the CNN money team for more on the housing numbers. The issue, the economy rather is "Issue Number One." It's coming up at noon Eastern today, right here on CNN.
Remember that cornflake shaped like the state of Illinois. Well, it's been sold on eBay for $1,350. The winning bidder is triviamania.com a site that hosts trivia game. The site owner says that he wants the flake for a traveling museum. Is that close enough to Illinois to pay $1,350 for? DE LA CRUZ: No.
ROBERTS: I don't know about that. You can see a little tiny Chicago in there.
DE LA CRUZ: Not a good thing.
A Grammy winning musician now fighting for his life. Emilio Navaira hospitalized after being thrown through the windshield of his tour bus. We're going to update his condition.
And the United States says Iran is destabilizing the Middle East. Al Qaeda is calling for more Palestinian violence against Israel. Is there a peaceful solution for the region. We'll talk to a longtime Mideast observer ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
ROBERTS: Forty-two minutes after the hour. Welcome back to the most news in the morning. Grammy winning singer Emilio Navaira is said to be fighting for his life after his tour bus crashed just outside of Houston. Police say he was thrown through the windshield after his bus plowed into some traffic barrels. Seven other onboard were injured. Navaira won a Grammy in 2003 for best Tejano album.
Vice President Dick Cheney just arrived in Ankara, Turkey where he is trying to shore up relations with that country. Earlier, in Israel, the Vice President blamed Iran and Syria for backing Hamas attacks and said their aim was to torpedo Israeli-Palestinian peace talks.
Robin Wright has been covering the region for more than 30 years and is currently a diplomatic correspondent for the "Washington Post." Her latest book just out is titled "Dreams and Shadows, the future of the Middle East" and Robin Wright joins us now live from Washington.
Good morning, Robin.
ROBIN WRIGHT, AUTHOR, "DREAMS & SHADOWS": Good morning, John.
ROBERTS: Let's take a little bit of a listen to what Vice President Cheney said after his meeting today in terms of making concessions between Israel and the Palestinians to try to achieve peace there.
(BEGIN VIDEO CLIP)
RICHARD CHENEY, VICE PRESIDENT OF THE UNITED STATES: Years of mistrust and violence have achieved nothing and the extremist who have stood in the way of a settlement have only caused further grief and suffering for the Palestinian and Israeli people.
(END VIDEO CLIP)
ROBERTS: Robin some Palestinians think it's going to be at least another generation before there is peace there. Through your research for this book, the many conversations you've had over the years, what are you finding out from people there?
WRIGHT: Well, I think the bottom line is we're not likely to see any kind of serious climax to this conflict during the final years of the Bush administration. The fact is, there's not enough energy, not enough ideas. The presence of the vice president in the region is not going to change the dynamics on the ground.
It's more complicated to solve than ever. You have three parties not just two that are now involved in the conflict, and Hamas does not recognized Israel's right to exist, which makes it very difficult to get any kind of even cease-fire organized.
But I think the bottom line, and what I wrote about, it comes out of the Iraqi experience, and that is that we knew so little about what was happening inside Iraq that we relied on a group of exiles led by a man who hadn't been there since 1958 to give us advice about the dynamics inside the country. So, I went back to the region and spent a year looking at what is happening inside each of these countries.
And to try to determine whether they're the kind of openings we saw in 2005 were an illusion or whether there is actually something happening. I think I concluded that we haven't reached -- we're not back at square one. There is a lot of movement going on. There are people who are tired of violence and have begun to reject al Qaeda and the extremists option and are looking at ways at carving out the political space, whether they are bloggers, or women activists, to use a full range of people who really do want positive change in the region.
ROBERTS: Let me quote from your book on that particular point, you say "Islamic extremism is no longer the most important interesting or dynamic force in the Middle East. The hard core terrorist in Al Qaeda or Islamic jihad have repeatedly proven they that can destroy but they have yet to provide tangible solutions or viable new models for problems plaguing the region."
So, if they're no longer the most important dynamic force in the Middle East what is?
WRIGHT: Well, this is we're beginning to see, and I stress beginning to see. New kinds of actors emerge. Women who were challenging the restrictions of family law. Bloggers who are getting around state control media and putting out new information, collecting data, think of a young blogger in Egypt to captured video cell phone pictures of police sodomizing a detainee with the end of a broomstick and put it out on the Internet through his blog and ended up forcing the Egyptian government to prosecute the two policemen.
But there are groups who are trying to hold governments to account. The reality is there's almost not a government in the region that's really responding to the will of the people, and so people have begun taking action on their own, aware of what happened in other parts of the world over the last 30 years.
ROBERTS: So, how long might it be before those people get the sort of power that they need to actually be the agents of change there?
WRIGHT: Well, this is, what we're talking about, at least a generation-long process. It will be more painful, more turbulent, more difficult than any place else in the world.
ROBERTS: You know, everywhere I go, I'm sure you get the same thing, too, I was just in Costa Rica, and people were asking me this question every time we chat and that is, what's going to happen with Iraq and Iran? Where do you see that region a year from now? Where do you see it ten years from now?
WRIGHT: Well, I think there are long-standing differences between Iraq and Iran. An Arab country in a Persian culture and they also have, you know, a long history of tension. I think once the United States is not there, you're likely to see the kind of natural dynamics and differences re-emerge.
Iran clearly is the winner out of the U.S. invasion of Iraq. It has greater influence now. In part because of this long war, bloodies modern Middle East conflict between 1980 and 1988, there is an interest in seeing a friendly government in Baghdad. I think the Iranians want to ensure that continues. But they also have their own larger Kurdish and Sunni populations and any instability in Iraq will clearly spill over into Iran. So, it has a vested interest in seeing some kind of stability in Iraq as well.
ROBERTS: The new book is called "Dreams and Shadows." It's a great read. Tremendous amount of depth and obviously a clear reflection of the amount of expertise that you have in the region and the amount of information that you've gathered over the years. Robin Wright from the "Washington Post."
Thanks for being with us today. It's good to see you. Congratulations.
WRIGHT: Thank you, John.
ROBERTS: "CNN NEWSROOM" just minutes away now. Tony Harris at the CNN Center with a look at what's ahead.
Good morning, Tony.
TONY HARRIS, CNN ANCHOR: Hey, John. Good morning to you.
Good morning, everyone.
We've got these stories on the NEWSROOM rundown for you this morning. Sad milestone. U.S. troops deaths in Iraq reached 4,000 and death on the high seas. Four fishermen killed when their boat sinks off Alaska. The search continues for a missing man, and the Easter re-birth of a church. Parishioners gather for the first time since Hurricane Katrina hit. Join Heidi and me in the NEWSROOM. We get started 12 minutes away -- 12 minutes or so at the top of the hour right here on CNN.
John, back to you. ROBERTS: Looking forward to it. See you soon, Tony.
Senator Barack Obama speaking out, defending his longtime pastor and his church is defending him too. Race, religion and politics during Easter Sunday services, that's coming up on AMERICAN MORNING.
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ROBERTS: It was one of the most surprising endorsements so far in the 2008 presidential election. And earlier on AMERICAN MORNING former Clinton administration member Bill Richardson talked about his decision to back Barack Obama.
(BEGIN VIDEO CLIP)
RICHARDSON: What attracted me to try to do something was, one, Senator Obama's enormous capability as a leader, but also the fact that the campaign has gotten so bitter and we have to stop this bloodletting, because we need to get to the convention unified. You know, John McCain is now going to California. Democratic territory to get votes and raise money. He's alone. He's not getting attacked, and we're fighting each other. So we've got to end this.
(END VIDEO CLIP)
ROBERTS: The New Mexico governor is also a superdelegate and plans to support Senator Obama even though Senator Hillary Clinton won a very close contest in his state.
Barack Obama is defending his spiritual adviser, Reverend Jeremiah Wright saying he helped build one of the finest churches in Chicago. In this Easter season, what are African-American voters saying about the mix of politics and the pulpit?
Our Lola Ogunnaike takes us inside her church in Brooklyn.
(BEGIN VIDEOTAPE)
LOLA OGUNNAIKE, CNN CORRESPONDENT: Easter Sunday at Emmanuel Baptist Church in Brooklyn, worshippers dressed to impress. Baptism and boisterous hymns. Praying and politics.
REV. ANTHONY TRUFANT, SENIOR PASTOR, EMMANUEL BAPTIST CHURCH: Hillary isn't a saint, neither is Obama. Neither is McCain.
OGUNNAIKE: But does politics have a place in the pulpit? It's a question that was recently brought to the American forefront. Thanks to Barack Obama's pastor Jeremiah Wright and these explosive comments.
REV. JEREMIAH WRIGHT, FORMER PASTOR, TRINITY UNITED CHURCH OF CHRIST: We are indignant because the stuff that we have done overseas is now brought right back into our own front yards! America sickens coming home to --
OGUNNAIKE: The firestorm that followed has forced many black Americans including Senator Obama himself to explain what happened inside their chapel.
SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: The church contains in full the kindness and cruelty, the fierce intelligence and the shocking ignorance, the struggles and successes, the love and, yes, the bitterness and biases that make up the black experience in America.
OGUNNAIKE: But it's an experience that differs from church to church. And person to person.
MELISSA HARRIS-LACEWEELL, AFRICAN-AMERICAN STUDIES PROF.: There is no one black church. There is no one black church tradition. We're not all listening to the same sermon on Sunday.
OGUNNAIKE: And they're not all looking for the same thing either.
UNIDENTIFIED MALE: I wouldn't go a church that didn't talk about politics in some way.
UNIDENTIFIED FEMALE: Well, I'm not expecting to hear politics at church but I'm certainly not going to shy away from it.
TRUFANT: The lord has given me victory.
OGUNNAIKE: My pastor, the Rev. Anthony Trufant, likes his sermons to strike a balance between current events and biblical ones. Resurrections, the elections and more tackled in 30 minutes.
TRUFANT: Every preacher must have a newspaper in one hand and a Bible in the other.
OGUNNAIKE: Now, I want to talk about something that you addressed in your sermon today. I mean, you mentioned Hillary, you mentioned Obama, you mentioned McCain. But you stopped short of saying who you were endorsing.
TRUFANT: It has always been my policy to be politically aware, politically involved, but not to employ my pulpit as a bully pulpit.
OGUNNAIKE: So now you're going tell me who you're voting for?
TRUFANT: No. I endorse Jesus Christ as a person that people ought to get to know.
(END VIDEOTAPE)
ROBERTS: He's got to walk a very fine line there, too. I mean, he's obviously free as a person to endorse a candidate, but if he is to endorse a candidate from the pulpit, he could run afoul of IRS rules.
OGUNNAIKE: Absolutely. Under Federal Tax Law, the churches are not allowed to endorse a candidate or a specific party and they're not allowed to donate to their financial causes either. So the church has to walk a very fine line between the pulpit and politics. ROBERTS: But as you said, talking to that one fellow there. There is a real interest, a hunger almost, for people to hear about politics in addition to religion when they go to church.
OGUNNAIKE: You just can't avoid it right now. I mean, this election is just on everyone's mind. Everyone's talking about it and people are talking about all sorts of things, race, gender, religion. All weaved in together. So, you can't listen to it Monday through Saturday and then forget about it on Sunday.
ROBERTS: And the more well-informed the electorate is the better decisions we can make. Lola Ogunnaike, great piece. Thanks for bringing that to us this morning.
OGUNNAIKE: Thank you.
ROBERTS: A quick look now at what CNN NEWSROOM is working on for the top of the hour.
HARRIS: See those stories in the CNN NEWSROOM. Somber statistics. U.S. military death toll in Iraq hits 4,000.
Record at the pumps. U.S. gas prices at all-time inflation adjusted highs.
Sinking in rough and cold seas. Four people dead, one missing in a fishing boat accident off Alaska.
And small town, big blast. A meat plant explosion destroys an Arkansas town's livelihood.
NEWSROOM. Just minutes away at the top of the hour on CNN.
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ROBERTS: A final check of this morning's "Quick Vote" question: Is the Iraq war winnable?
We've been asking this morning, 13 percent say yes, leave the troops in as long as it takes -- 87 percent say, no, it's not winnable, we should start pulling troops out now. To all of you who voted today, thanks very much, we'll do it again tomorrow.
And thanks for joining us on this AMERICAN MORNING. "CNN NEWSROOM" with Tony Harris and Heidi Collins begins right now.
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