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Prime Minister Maliki Gives 72-Hour Deadline to Fighters in Basra; Hillary Clinton Claims She Would Have Left Obama's Church; Controversial Hypothermia Therapy for Injured Singer; Advice on How to Retire the Right Way for Your Budget

Aired March 26, 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: And good morning, everyone, you are in the CNN NEWSROOM. I'm Tony Harris. Heidi is starting maternity leave. Heidi, i-Report, please.
Watch events coming to the NEWSROOM live on this Wednesday morning. It is March 26th. Here's what's on the rundown.

American and Iraqi troops targeting gangs and militants in the strategic oil city Basra. The prime minister giving fighters 72 hours to give up.

New numbers on new home sales due this morning. What do they tell us about the housing crisis?

A question about Monica Lewinsky. Chelsea Clinton's quick comeback. Don't ask, don't tell, in the NEWSROOM.

If you hold a ticket for an American Airlines flight, hang on just a second here. Breaking news. Right off the top of the news cast. American Airlines is canceling 200 flights, nearly 10 percent of its schedule today, to perform what's being described as more details, inspections of a key aircraft model.

A statement from American Airlines says that the inspections pertain to questions raised by the FAA about how a certain bundle of wires is secured in the MD-80 aircraft. Now, the inspections will take several hours but an airline spokesman also says that the carrier has not grounded any aircraft at this point.

Again, American Airlines canceling 200 flights. Again, nearly 10 percent of its schedule today to perform more detailed inspections on the MD-80 aircraft.

More details on this story as we get them here in the CNN NEWSROOM.

Also developing this morning in Iraq. A deadline for Shiite militants in Basra to surrender their weapons. The violent surge in the oil port and in Baghdad threatens to unravel a seven-month ceasefire.

Live to Baghdad and our Kyra Phillips.

Kyra, give us an idea of where things stand at this hour. KYRA PHILLIPS, CNN ANCHOR: Well, Tony, we're not just talking about Basra. But this fight has serious implications for the stability of entire Iraq. The battle say among Iraqi forces, hard- line Shiite cleric Muqtada al-Sadr's Mehdi Army militia and rogue forces supported by Iran and independent criminal gangs.

And now my sources within the military are telling me that the mortar and rocket attacks that had struck the international zone already killing one person are directly related to the fighting that's going on in Basra. Those attacks, my sources say, a message to Prime Minister Nouri al-Maliki to pull his forces out of Basra.

Why is this battle in Basra? Because it's an oil-rich country that everyone wants a piece of. Oil means money, Tony, and for a war- torn country, they will do whatever it takes to get that money.

Major General Kevin Bergner says this is not a U.S. military campaign but strictly Iraqi.

Take a listen.

(BEGIN VIDEO CLIP)

MAJ. GEN. KEVIN BERGNER, MULTI-NATIONAL FORCES, IRAQ: Prime Minister Maliki specifically said that he took these actions, because, quote, "the lawlessness is going on under religious or political cover along with smuggling of oil, weapons and drugs."

(END VIDEO CLIP)

PHILLIPS: Al-Maliki has now given militants a 72-hour deadline, Tony, to surrender their weapons or face prosecution.

HARRIS: So Kyra, if you would, give us a little bit more of a background on the significance of Basra? Now we haven't heard a lot from that area recently, particularly since the British pulled most of its troops out.

PHILLIPS: Well, if you remember, even from my smuggling piece that I did a few weeks ago, that was based out of Basra. Right there where Basra is there's a huge port and then there's that waterway, Shatt al-Arab, and that takes you right next to Iran. And so these smugglers get the oil from this oil-rich city and their number one client is Iran. So there's that struggle in itself.

Then, why else do -- does everybody want a piece of the pie here in Basra? There's a lot of corruption because of the wealth in this city. I mean, already Prime Minister al-Maliki has fired two generals. He's already told the police chief there that his job is at stake and he's also removed the governor from that area.

So there's a lot of animosity and a lot of tension politically, monetarily and there's all these forces fighting to just get a piece of that area.

HARRIS: CNN's Kyra Phillips for us live from Baghdad. Kyra, appreciate it. Thank you.

Some background now on Muqtada al-Sadr. He is a hard-line Shiite cleric and leader of the Mehdi Army militia. Many of al-Sadr's followers live in Baghdad's Sadr City, a slum of about two million people. Since the U.S.-led invasion, al-Sadr has emerged as a powerful figure. His party holds at least 30 seats in Iraq's parliament. Al-Sadr opposed the U.S. presence in Iraq but he earned praise when he called for a ceasefire in August.

The nation's sputtering economy now. You feel the effects at the gas pump and at the grocery store. Today, we will have a better idea of the road ahead.

Just minutes ago, the government released its report on orders for durable goods. Big-ticket item like washing machines, refrigerators. It showed factory orders dropped again, 1.7 percent. That's a disappointing surprise for economists who expected a slight increase, in fact. It's worth noting that the climb comes after January's big plunge of almost five percent.

Now, next hour, an update on the housing crisis. We will get the latest numbers on new home sales. Economists are expecting yet another decline.

More mixed news expected today on energy. That report is likely to show stockpiles of gasoline down. Crude oil inventories are expected to be up, and in just a few minutes, perspective and advice, we will go to New York and check in with CNN personal finance editor. That's Gerri Willis.

Wheeling and dealing in the automotive industry. Some of the biggest names are involved in a mega deal. Here's the breakdown. Ford Motor Company is selling Jaguar and Landrover. The buyer, India's Tata Motors. It will pay less, though, than the half -- less then half of what Ford paid for the two luxury brands. Ford has been struggling, as you know, and wants to focus on its main brands.

Keep watching CNN. Our money team has you covered whether it's jobs, debt, housing or savings, join us for a special report. It's called "Issue #1, The Economy," all this week, noon Eastern only on CNN.

The presidential candidates out in force today. John McCain in Los Angeles to talk world affairs. The speech comes a day after the presumptive Republican nominee picked up the endorsement of Nancy Reagan.

On the Democratic side, Barack Obama returns from a little R&R in the Virgin Islands. He will rally voters in North Carolina this afternoon. Hillary Clinton will team up with daughter Chelsea for a campaign event in Washington. Clinton weighing in now on inflammatory remarks by Obama's former pastor. She says she would have left his church.

With more on Clinton's comments, here's CNN Dan Lothian.

(BEGIN VIDEOTAPE)

DAN LOTHIAN, CNN CORRESPONDENT (voice-over): Senator Hillary Clinton jumped into the controversy over Barack Obama's former pastor with both feet.

SEN. HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: I think given all we have heard and seen, he would not have been my pastor.

LOTHIAN: This comes a week after Obama gave his race speech in which he condemned the words of Reverend Jeremiah Wright but not the man. Clinton, seemingly trying to deflect attention from her recent missteps, was critical of Obama's choice when asked what she would have done.

CLINTON: We don't have a choice when it comes to our relatives. We have a choice when it comes to our pastors and the churches we attend.

LOTHIAN: The Obama campaign was quick to fire back. Spokesman Bill Burton saying, quote, "It's disappointing to see Hillary Clinton's campaign sink to this low."

All of this happened on the day Clinton was trying to backtrack on this remark about a 1996 trip to Bosnia.

CLINTON: I remember landing under sniper fire. There was supposed to be some kind of a greeting ceremony at the airport, but instead we just ran with our heads down to get into the vehicles to get to our base.

LOTHIAN: But video shot that day seemingly contradicts her version of events. No one seems to be running or ducking, and there does appear to be a ceremony.

Clinton says she was sleep deprived and misspoke.

CLINTON: I made a mistake. That happens because I'm human, which, you know, for some people it's a revelation.

LOTHIAN: The question is: how will this impact her credibility?

JENNY BACKUS (D), POLITICAL CONSULTANT: I think it could hurt her credibility, but what I think hurts the most is her claim that she is the candidate of more experience and that she's got more foreign policy experience and commander in chief than Barack Obama.

(END VIDEOTAPE)

HARRIS: And Dan Lothian is with the CNN Election Express. He joins us from Philadelphia.

Dan, great to see you. I'm just sort of curious here. Why is Hillary Clinton bringing up a Reverend Wright issue now after not touching the controversy last week? I'm curious, was she responding to a question about the reverend? LOTHIAN: She really was. And you are quite correct. That's a question a lot of people are asking. Why now? Because when this issue was essentially exploding she decided to stay out of the fray, she was asked by reporters about the controversy and she did not get involved. And so the sense obviously now that she's just trying to get some attention off of the Bosnia controversy.

But Senator Clinton says she essentially was answering a question. A reporter asked her a question about what she would have done. She says it was a personal question and she responded to it in a personal way.

HARRIS: Well, reporters were asking that same question last week. Just saying. Just...

LOTHIAN: That's true. The question -- right.

HARRIS: All right. Dan Lothian in Philadelphia.

LOTHIAN: That's correct.

HARRIS: Dan, appreciate it. Thank you.

And an awkward moment on the campaign trail for Chelsea Clinton. A college student wanted to know if the Monica Lewinsky scandal had damaged her mother's reputation.

(BEGIN VIDEO CLIP)

CHELSEA CLINTON, SEN. HILLARY CLINTON'S DAUGHTER: Wow. You're the first person actually that's ever asked me that question. In the, I don't know, maybe 70 college campuses that I've now been to and I do not think that's any of your business.

(END VIDEO CLIP)

HARRIS: OK. The crowd actually cheered Clinton's response, then she went on to answer one final campaign question.

John McCain in Los Angeles to talk world affairs. That's at noon Eastern. Barack Obama rallies in North Carolina. Expect live coverage on CNN, your home for politics.

CNNpolitics.com is your source for everything political, from the candidates' movements to the latest delegate count. Get all that and more in CNNpolitics.com.

What do you say we check in with Rob Marciano now at the severe weather center for our first look at weather in the -- there he is making his way to the -- good to see you, Rob. Good morning.

ROB MARCIANO, AMS METEOROLOGIST: Hey, Tony. How you doing?

HARRIS: Outstanding. (INAUDIBLE).

(WEATHER REPORT) HARRIS: Yes, sir. You know, I'm just checking e-mails for anything from our partner in crime here, Heidi Collins.

MARCIANO: You're demanding i-Reports. I saw it.

HARRIS: i-Reports.

MARCIANO: And where did that kind of snuck up. I don't remember the whole maternity-leave-happening-tomorrow conversation coming up yesterday.

HARRIS: I don't remember it either.

All right, Rob. We will check in with you a bit later.

MARCIANO: OK.

HARRIS: And with Heidi as well.

Still to come in the NEWSROOM, give a kid $40,000, a checkbook and a credit card and what do you get? Appreciation for mom and dad. Budget assignment, ahead in the NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: And good morning again, everyone. You are in the CNN NEWSROOM. I'm Tony Harris.

A music star seriously hurt in a bus crash. The experimental therapy doctors are using hoping to save his life. A closer look straight ahead.

(COMMERCIAL BREAK)

HARRIS: On the second deadly crane accident in 10 days, investigators want to know what went wrong. This time it happened in Florida. Part of a construction frame broke off and plunged 30 stories slamming into this house. Look at these pictures here. Two people were killed. Five other people hurt. The house was an office for construction workers building a condo next door. Less than two weeks ago you may recall a crane accident in New York killed seven people.

Celebrity chef Paul Prudhomme keeps serving up food Cajun style, of course, that despite being brazed in the arm by a falling bullet. It happened yesterday morning. He was setting up his cooking tent at the Zurich Classic of New Orleans. He felt a sting, shook his sleeve and a bullet fell to the ground. Prudhomme didn't need medical attention. He was at the course to cook for the players, caddies and guests, and cook he did through the afternoon.

Singer Emilio Navaira, a terrible bus accident leaves him with a traumatic brain injury. Doctors in Texas have lowered his body temperature trying desperately to save his life.

Dr. Sanjay Gupta is with us from New York this morning. And Sanjay, boy, this was -- the pictures from this accident, horrible, but here's what's interesting about it. We've always heard hypothermia is dangerous. How does this help someone with a brain injury?

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: It's interesting, Tony, and it is still controversial. But this idea of lowering the body temperature, some of the risks of it, and the reasons it's controversial, it can cause cardiac arrhythmias, it can cause blood clotting problems. And these are all things that you worry about after a trauma.

But the whole idea here, Tony, is to try and put the brain to sleep for a little while. Put it to sleep while it tries to repair itself. You want to keep the swelling down. They actually put this vest that sort of goes over the chest, over the thighs, and circulates this cool fluid through the skin, and that lowers the body temperature to about 91.5.

Take a look at what it hopefully does. Reduces swelling in the brain, prevents cells from dying. Tony, it's a critical period within those first few hours after the injury...

HARRIS: Yes.

GUPTA: ...you want to keep those cells live and let them repair themselves. And also you have several different active centers around the brain. You want to make sure they're communicating one with the other. Hypothermia seems to help there as well.

Tony, as you know, you and I talked about this.

HARRIS: Yes.

GUPTA: It is controversial. You remember Kevin Everett.

HARRIS: That's right. That's right.

GUPTA: The football player. He had a spinal cord injury. That spinal cord injury -- he's walking today, terrific news. It's -- he had hypothermia therapy as well. It's unclear how much the hypothermia actually helped him, but this is something that's starting to be done more and more for the reasons that I told you -- Tony.

HARRIS: Well, that's interesting, because we've been hearing in Navaira's, the next 24 to 48 hours are critical. So I guess we'll just keep an eye out on this situation and maybe we'll get an update from you?

GUPTA: Yes, I mean, doctors say, you know, if you have to assign a number to it, they say 65 to 75 percent chance of survival.

HARRIS: Wow.

GUPTA: He has lung injuries, he has spine injuries. Tony, as a neurosurgeon, I can tell you the biggest predictor of how people will do, both in the short term and long term, is whether they can keep those pressure, what's called the intracranial pressure, the pressure inside the head, if they can keep those low, under control, he has a much better chance of survival.

But we'll keep tabs on it as well, Tony...

HARRIS: Appreciate. Thank you, Sanjay. And you probably...

GUPTA: All right.

HARRIS: ...need to stick around to help us understand this next story.

An Oregon man claims he's pregnant. What will the neighbors think?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Is Thomas pregnant?

UNIDENTIFIED FEMALE: I'm just like, whoa.

UNIDENTIFIED MALE: I can stick my stomach out, (INAUDIBLE) like that.

(END VIDEO CLIP)

HARRIS: Baby on board. It's a question, in the NEWSROOM. But first, your retirement nears. Your home's value slips away. What do you do when the nest egg cracks?

Gerri Willis has advice coming up for you in the NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: You are in the CNN NEWSROOM. I'm Tony Harris.

His creator says the online game is just good fun. Critics say it sends the wrong message to young girls.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: The message is clear and simple. A girl's value is in her looks, and if you're not happy with it, then fix the way you look and that's the only way you'll be happy.

(END VIDEO CLIP)

HARRIS: Miss Bimbo, a mistake?

(COMMERCIAL BREAK)

HARRIS: Your home, often your biggest investment, it can also be your biggest retirement nest egg. But with another record decline in home prices, can you count on that equity?

CNN personal finance editor Gerri Willis is here with advice.

And Gerri, good to see you this morning.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Good to see you, Tony.

HARRIS: We're going to spend a good chunk of time this morning, this hour, and again next hour. Hey, what is your advice to people who find themselves in this particular situation?

WILLIS: Well, you know, look, at the end of day you find that more and more people are retiring where they lived before they retired.

HARRIS: Yes.

WILLIS: That's because they want to be close to kids and grandkids. And it gives them peace of mind. It's not a bad idea at all. Look, you'll be near family. You probably keep your prices lower. Remember, you don't have to maintain the same standard of living. If you really feel you've got to sell your house to get into retirement, you might consider downsizing, moving to a lower cost state, can really help out your finances.

HARRIS: Yes.

WILLIS: And if you want to check out cost of living calculators at CNNmoney.com and Bestplaces.net. You can get an idea of just how much money you'll take to live in some of these markets. But you may want to shop around. You may want to stay put for a while.

HARRIS: Right. I'm thinking about maybe a gut reaction to this kind of development, where you see your equity just essentially flying out of the window here. Should you panic?

WILLIS: Well, now, look, this is a moment in time. Let's put it in context for just a second. Housing prices have come down, but you have to understand how much. At the peak of the market, remember, prices rose a lot, at triple digits in some areas.

Take a look at these numbers. Miami-Dade County, price appreciation between 2001 and 2006, that's the highest of the boom, up 154 percent. Phoenix, up 109 percent. San Diego, up 107 percent. We just had numbers yesterday that Miami-Dade has come off 20 percent. But you see the gain that you still have based in there.

Look, even if you lose 20 percent of the value of your home, you're still on top. I mean what were you thinking you're going to gain from all that? Right?

HARRIS: You're right.

WILLIS: Am I right?

HARRIS: Yes, no, no, no. Good point.

WILLIS: Yes.

HARRIS: And panicking is -- never really a good idea. You stop thinking when you panic. I'm curious as to your advice to people who don't have to sell right now?

WILLIS: It's a cycle. Real estate is a cycle. Stocks are in a cycle. If you don't have to sell now, it may make more sense to simply ride out the downturn.

Moodyseconomy.com sees housing prices beginning to recover in about a year in the middle of 2009. Now that doesn't mean they're going to immediately go up. They might stabilize and slowly track higher. But I got to tell you, Tony, you've got to follow these numbers and make sure you understand your local market, because it's all about the local market.

HARRIS: I think that is so important to remind folks of that. We see these numbers in the national pictures, but it's all about the local market.

Now I know we're going to see you again next hour and you're going to offer up more top tips for us.

WILLIS: Right.

HARRIS: But let's push ahead to noon Eastern and "Issue #1," what do you guys in the whole financial team working on for noon Eastern Time today?

WILLIS: We've got a lot going on. Tune in today and all this week at noon Eastern Time, we're going to be talking about number your number one issues, your housing, you debt, your job, your savings. A lot about housing today. We'll be bringing in experts who can tell you when is this turning around...

HARRIS: Yes.

WILLIS: ...and give the best estimate on what prices are doing.

HARRIS: Can't wait for that at noon. But we will see you again next hour, Gerri.

WILLIS: That's right.

HARRIS: But see you then. Thanks, Gerri.

WILLIS: I can't get enough.

HARRIS: We can't either.

And still to come in the NEWSROOM this morning. Antarctica thaws out. A huge chunk of ice collapses. Another one hangs by a thread. Pictures ahead.

(COMMERCIAL BREAK)

HARRIS: I say leaning in two directions. Is that why voters are leaning towards Hillary Clinton?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The eastern part of Pennsylvania is more like New Jersey and the western part is more like Ohio and she won both of them.

(END VIDEO CLIP)

HARRIS: What Barack Obama needs to do to make Pennsylvania his state? That's coming up straight ahead in the CNN NEWSROOM.

Let's take you now to the New York Stock Exchange, seconds away from the opening bell. As we -- there we go. And the Dow starts today at 12,532 after losing just 16 points yesterday.

You know, we told you Monday this would be a big week for economic reports. More reports due out this morning. A short time ago, the numbers on durable goods, a little disappointing. New home sales numbers due at 10:00 a.m. Eastern Time. The Dow futures indicating kind of a sluggish open. Credit concerns, the principle driver there.

Susan Lisovicz, of course, is with us following the markets and all of the business news right here in the CNN NEWSROOM. Where did you all go?

And a developing story we're following this hour. American Airlines is canceling 200 flights today to perform some key inspections. That's about 10 percent of the carrier's schedule. They say the inspections have to do with FAA questions about the wiring on the MD-80 aircraft. The airline says it has not grounded any of the planes. It ordered the flights canceled to allow time for the inspections.

Earlier, the FAA ordered the nation's airlines to inspect older Boeing 737 jets. That's an unrelated issue to a possible problem with a bolt that could cause fuel leaks. We will stay on top of this story for you.

More fallout this morning from a mistaken shipment of U.S. missiles parts to Taiwan. China is now demanding an investigation. The Pentagon says it's already underway.

The Pentagon revealed yesterday that four non-nuclear triggers were shipped to Taiwan in 2006. They're made to fit into the nose cones of intercontinental ballistic missiles. Taiwan had requested helicopter batteries. The Taiwanese defense official says the U.S. first asked Taiwan to dispose of the parts then ordered their return when the seriousness of the error became clear.

Developments unfolding this morning in a surge of violence in Iraq. The prime minister tells the Shiite militants in oil-rich Basra to surrender their weapons within 72 hours. This is the second day of clashes between Iraqi and U.S. security forces and fighters who have aligned themselves with Shiite cleric Muqtada al-Sadr.

But the U.S. military says forces are targeting armed criminals, not members of al-Sadr's Mehdi army. The fighting has killed 40 to 50 people in Basra. Another 18 have died in clashes in Baghdad. The violence threatens to unravel a cease-fire put in place by al-Sadr several months ago.

President Bush huddling with top military brass about Iraq. Pentagon correspondent Barbara Starr joins us live.

Good morning to you. What are you hearing is on the military chiefs' agenda this morning?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, in about just half an hour, Tony, the president will come here to the pentagon to sit down with the Joint Chiefs of Staff in the tank, that secure meeting room near the Pentagon.

That will be a very important meeting, he is coming across the Potomac River here to the Pentagon rather than calling them there. This is the chiefs' chance to sit down with the president one on one and give him their recommendations about the way ahead in Iraq, against the backdrop of what you just described.

What our sources are telling us, our military sources, is the chiefs are onboard with the idea of a pause once those five surge brigades come home in July, take a deep breathe. See what the security gains really are. See how the Iraqi forces are really doing and then make some decisions about when the next troops can come home.

What the chiefs will tell the president is that they want to see some continuous assessment of that whole question. They want to make those decisions as quickly as can possibly make, be made, given the security conditions, because the chiefs are concerned about the readiness of the forces.

The troops after five years are exhausted, worn out, stretched thin, whatever you want to call it. The chiefs will tell the president they are concerned about readiness and availability of rested and trained troops if another crisis were to break out somewhere in the world.

HARRIS: Very interesting. We'll wait for what you learn from that briefing shortly. Pentagon correspondent Barbara Starr for us this morning. Great to see you. Thank you.

STARR: Thank you.

HARRIS: The U.S. now says an Egyptian was killed in the incident near the Suez Canal. Reported on Monday, a U.S. navy contracted ship fired warning shots at an approaching motorboat that ignored warnings to turn away. The U.S. Embassy now says the warning shot killed an Egyptian on the boat. The U.S. previously said no one had died. U.S. navy contracted cargo ships follow the same rules of engagement as American warships and the navy has been cautious since the 2000 attack on the "USS Cole." That attack killed 17 sailors.

An ice sheet as big as Connecticut hanging by thread, it's part of an ice shelf in Antarctica. Scientists say it's a sign global warming is getting worse. Researchers from the British Antarctic Survey say they saw a huge piece of ice break off last month and are worried the entire shelf could collapse soon.

Scientists originally predicted the shelf would last another 15 years. Amazing pictures. A brief conversation about this morning. This is something to be concerned with, and I know you probably have a couple more pictures for us as well.

MARCIANO: I do. Those were dramatic aerials. What was cool about it, it looks like someone went in there with a knife and just cut those things up in the squares and rectangular blocks. Really dramatic stuff. That's Mother Nature at work. This particular ice shelf has done this in the past, not this extent and done it rather quickly, really in a matter of days to a couple of weeks.

The region of disintegration we're calling it. An area of blue, the ice is beginning to split apart bit and we go into a closer view. These are bigger than houses in some spots. But again, almost looks like someone took an ice tray, flipped it over and cracked the ice cubes out.

I should mention, this part of the Antarctica is the warmest part and a good chunk of the rest of the continent is actually in a cooling trend. Scientists say because of the ozone layer, and as it heals because we stopped using the chemicals that deteriorate the ozone layer, it may close that up and may start to warm the entire continent. Anyway, it's a complex system for sure.

We go back to the U.S. and we're looking at flooding concerns across eastern Arkansas. Again, Little Rock, this shot from our affiliate a different vantage point of the Arkansas River. There you go. KA-TV, thanks for that shot. Fifty-eight degrees, sun coming out. You're going to get into the lower 70s. Look going today, but we have more precipitation in the forecast. That's not necessarily good news.

That water's got to get down into the Mississippi, from the White River to the Mississippi, eventually into the Gulf of Mexico. This part of Louisiana flattens out so the water slows down. It's probably not going to get to the gulf until at least a week. The flood warnings in Baton Rouge are in effect for a week and the floodwater there's not expected to crest until April 7th, like a week Monday or something like that. It's crazy.

More rain on the way, coming up from the Gulf of Mexico in this slice of real estate that some cases saw over a foot of rain last week. We don't see that much, but we'll see enough probably to kind of, maybe, turn the knife a little bit. I-5 from Seattle to Salem, south to almost San Francisco, our next batch of rain and in the valleys and snow in the mountains.

Very fast-moving pattern setting up, Tony. We get one right after the other. Good news for this next one coming through the flood zone. Shouldn't get a foot of rain, at best an inch or two. But every little bit hurts at this point.

HARRIS: I love what you said, the situation of Arkansas and the White River yesterday. That you want the water to move to the Mississippi in as orderly a fashion ...

MARCIANO: Yes, to try to get it out of there.

HARRIS: You want to get it out of there, but not too much too fast. All right. Rob, good to see you.

It's not so easy for mom and dad to make a budget. Fifth graders in a Massachusetts school get early money lessons.

Reporter Jackie Rousseau of affiliate WWLP has the story for us.

(BEGIN VIDEOTAPE)

JACKIE ROUSSEAU, WWLP REPORTER: Fifth graders at Stony Hill Elementary School are taught how to budget their money using real life scenarios. Each student chooses a profession, dresses the part and learns how to allocate a $40,000 a year salary, paying for everything from a mortgage to a car payment to groceries. 11-year-old Elizabeth (ph) chose to be a fashion designer. And can't believe how much everyday necessities cost.

ELIZABETH: Health, I always thought your insurance could pay for it, but sometimes you have to pay for it.

ROUSSEAU: The goal of the pilot program caught by Country Bank is to encourage kids to think about their future.

JODIE GERULATIS, COUNTRY BANK: So they're not going to be having bad credit reports. They're learning the consequences now.

ROUSSEAU: The program not only teaches students how to budget but also teaches them how to write out a check, and how to open a real-life savings account. Some of the students say it's taught them what it's like for their parents.

UNIDENTIFIED MALE: They must have to pay a lot of bills.

ELIZABETH: If you have a lot of money, you can't spend it all in one place. You have to still pay all of your bills first.

ROUSSEAU: Teacher Michele Mistalski says she can tell the program is working just by looking at the shock on her students' faces when they see how much things cost. She believes it is a crucial life lesson that should be taught in every classroom.

MICHELE MISTALSKI, FIFTH GRADE TEACHER: In everyday math, not anything that's going to go away from their lives. Something they're going to have to do for the rest of their lives.

ROUSSEAU: The program is so successful, that modified versions of the financial lesson will soon be taught to students in every grade at Stony Hill.

I'm Jackie Rousseau for 22 News.

(END VIDEOTAPE)

HARRIS: Boy, love this. The program also helps students open their own bank accounts and comes weekly to the school so students can deposit their savings.

Unprotected flights, a CNN "SPECIAL INVESTIGATIONS UNIT" looks at the Federal Air Marshal Program. You may be surprised by what we found.

(COMMERCIAL BREAK)

HARRIS: Pennsylvania, the next primary battleground. You know, it's considered Clinton country. But why?

CNN's Bill Schneider explains.

(BEGIN VIDEOTAPE)

WILLIAM SCHNEIDER, CNN SENIOR POLITICAL ANALYST: Hillary Clinton is expected to win big in Pennsylvania next month. It's got her kinds of voters.

JOHN BAER, PHILADELPHIA DAILY NEWS: 2 million residents over the age of 65, a very heavily unionized state, a lot of Catholics in state. Women in Pennsylvania vote at a higher rate than men in Pennsylvania.

SCHNEIDER: And she has family roots in Pennsylvania.

Barack Obama is campaigning for change. But Pennsylvania's a state where more than three quarters ever the people who live there were born there.

BAER: It speaks to a state where change isn't an important element day-to-day life.

SCHNEIDER: Pennsylvania is a diverse state, part Midwest, part northeast.

TERRY MADONNA, POLLSTER: The eastern part of Pennsylvania is more like New Jersey and the western part is more like Ohio. She won both of them.

SCHNEIDER: Does Obama have a chance here?

BAER: The only way that Senator Obama can do better than losing the state by 5 percent to 8 percent is if she able to capture the imagination of new voters. SCHNEIDER: You have to be a registered Democrat to vote in the Democratic primary here. Registration closed Monday. So what happened? Since January 1st, upwards of 120,000 new Democrats joined the rolls. More than 86,000 voters switched their party to vote in the Democratic primary.

The director of the Philadelphia Republican Party says the Democratic primary has hit this city like a hurricane.

ALAN SCHMIDT, Republican PARTY OF PHILADELPHIA: There appear to be tens of thousands of new registered Democrats in Philadelphia County. We're not sure exactly, you know, where they came from or why they haven't shown up on the radar before.

SCHNEIDER: Clinton's strongest argument for her nomination is that she can win states like Pennsylvania.

CLINTON: I have won the big states. I've won the states that a Democrat to win.

SCHNEIDER: That art disappears if she loses Pennsylvania.

UNIDENTIFIED MALE: I think that effectively would end her campaign.

SCHNEIDER: Pennsylvania experts say Barack Obama could win Pennsylvania the same way Governor Ed Rendell beat Bob Case any the 2002 Democratic primary for governor, by sweeping Philadelphia and its suburbs. There's only one problem. Governor Rendell endorsed Hillary Clinton, and is working hard to deliver his state for her.

Bill Schneider, CNN, Philadelphia.

(END VIDEOTAPE)

HARRIS: CNNpolitics.com is your source for everything political, from the candidates' movement to the latest delegate count. Get all that and more at CNNpolitics.com.

Suddenly stranded, American Airlines drops 200 flights for safety checks. The developing story right here in the CNN NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: Guarding the skies. The job of the federal air marshal service. But are they really onboard? An exclusive report now from CNN "SPECIAL INVESTIGATION UNIT's" correspondent Drew Griffin.

(BEGIN VIDEOTAPE)

DREW GRIFFIN, CNN SPECIAL INVESTIGATIONS UNIT CORRESPONDENT: If there is one place Americans should feel safe after 9/11 it should be here at Washington's Ronald Reagan airport. Certainly any attempt to take over the plane would be thwarted by federal air marshals, but that is only if federal air marshals are onboard. CNN is being told by air marshals themselves that on 99 flights out of 100, they're not. If I would say one percent, less than one percent, would I be far from the mark?

UNIDENTIFIED MALE: I don't think so. You wouldn't be far from the mark.

GRIFFIN: These two federal air marshals told us on camera at least a dozen of colleagues and pilots have told CNN off camera. Afraid to be identified for fear of retribution, they say the department of homeland security hides behind national security law, because making the facts public would be a PR disaster.

Are the numbers classified because the numbers are embarrassing?

UNIDENTIFIED MALE: I would be very embarrassed by them if they were to get out.

GRIFFIN: Keeping them honest, we spoke directly with numerous air marshals. They all tell us about one percent of the 28,000 flights that take off or land in the U.S. each day are protected. One pilot who crisscrosses the U.S. and flies internationally says he hasn't seen an air marshal onboard in six months.

A federal law enforcement officer who travels to Washington every week, says he can go months without seeing a marshal. And another person who wanted to protect his identity because he carries a weapon on flights, says the marshals are almost non-existent.

UNIDENTIFIED MALE: Without a doubt, it's fewer than one percent of all the flights.

GRIFFIN: The Transportation Security Administration, the TSA, runs the air marshal service, which has refused and on-camera interview.

Assistant Special Agent Greg Olsen wrote to us that the figures we've been given are incorrect. Olsen won't divulge his figures but says, "While the exact number of flights air marshals protect is classified because we don't want terrorists to play a mathematics' guessing game base and percentages, the actual number of flights is thousands per day. This represents exponentially more than 1 percent and well in double digits."

And adds, "The Federal Air Marshal Service employs an intelligence and risk based approach to covering flights." Covering flights is a deliberate choice of words, we're told. Air marshals tell us the administration internally says at least 5 percent of flights are covered.

A spokesman for the air marshals service says when the service seas flight is covered, it mean as federal air marshal is on the plane. But the federal air marshals themselves and armed pilots say that's not exactly the whole story.

UNIDENTIFIED MALE: They've specifically told us that if there's an trained armed person on the plane, then that's a covered flight. GRIFFIN: Even if that person is not an actual air marshal, or some other kind of law enforcement officer who could be on vacation. As for any claim 5 percent of flights are covered, Dave Mackett with the Airlines Pilots Security Alliance just doesn't believe it.

CAPT. DAVE MACKETT, AIRLINE PILOTS SECURITY ALLIANCE: We are not seeing anywhere near the coverage that they are asserting they have. It's -- it's -- I think they're twisting past the graveyard hoping against hope this house of cards they call airline security doesn't come crashing down around them.

GRIFFIN: What's happening here? We're told federal air marshals are leaving in droves, some for better jobs, and they're not being replaced. The TSA says the number leaves remained a constant 6.5 percent a year since 2001.

Numerous sources are telling CNN so many federal air marshals have transferred to other jobs or left the service, staffing at field offices has nearly been cut in half. For instance, Las Vegas, which had as many as 245 federal air marshals checked in last month with only 47. This year, the TSA is advertising to hire 50 new federal air marshals.

(END VIDEOTAPE)

HARRIS: CNN's Drew Griffin. CNN's security watch keeps up to date on safety news. Stay tuned day and night.

Deadly explosions in Dubai, the fire spread to dozens of buildings. Who's to blame? The story straight ahead in the NEWSROOM.

(COMMERCIAL BREAK)

HARRIS: The outrage story of the morning so far. You ready for this? All right. Here we go. Be the best bimbo you can be. It is the goal of an online game causing quite a stir.

CNN's Phil Black reports.

(BEGIN VIDEOTAPE)

PHIL BLACK, CNN CORRESPONDENT: Nicholas Jacquart has created a Web site for young girls that is hugely successful in his native France and is now causing outrage in Britain.

This is your bimbo.

NICHOLAS JACQUART, "MISS BIMBO" CREATOR: Yes. My bimbo.

BLACK: It's called Miss Bimbo and in it players get their own female character to look after.

JACQUARDI: I can have a t-shirt. Look beautiful.

BLACK: Dressing, keeping her happy on the innocent basics of the game. To win you much do so much more and encouraged to choose sexy lingerie, keep her weight thin and diet pills if necessary. Make her more attractive, even with cosmetic surgery and find a rich boyfriend to look after her. You can also play a game called "French Kiss" where your lips must catch as many boys' lips in as possible.

This site has more than a million in France, 200,000 in Britain. It's just good fun, says its creator.

What is the goal of the game? What are the bimbos trying to do?

JACQUARDI: To be the most famous bimbo with the most ...

BLACK: But others describe it as frightening and dangerous.

LINDA PAPADOPOULUS, PSYCHOLOGIST: The message is clear and simple. A girl's value is in her looks and if you're not happy with it, fix the way you look. That's the only way you'll be happy.

DR. DEE DAWSON, EATING DISORDER EXPERT: It tells you that a balanced diet is a plate of vegetables which is clearly nonsense and it tells you that cereal bars make you fat. They are not messages we should be giving to young children.

BLACK: And then the name.

How would you feel if someone called your little sister a bimbo?

JACQUARDI: I don't like, of course. Nobody should want to be a bimbo. It's not their life. It's a game. Why not be a bimbo in a game?

BLACK: Despite some similarities in appearance, Jacquardi says "Miss Bimbo" is not modeled on any one celebrity.

TAYLOR RAE, GLAMOUR MODEL: I had an operation, a breast enlargement, and to pursue a career.

BLACK: Glamour model Taylor Rae lives the "Miss Bimbo" lifestyle. She lives off her looks and she is proud of it. Rae doesn't object to the Web site but believes young girls are increasingly too worried about their appearance.

RAE: It can be a bad thing, because they start to get addicted to it.

BLACK: This Web site has triggered a loud public debate in Britain and the people who run "Miss Bimbo" admit the numbers using the site here have soared because of that debate.

Phil Black, CNN, London.

(END VIDEOTAPE)

HARRIS: I guess we should probably just move on. Good morning, everybody. I'm Tony Harris.

BRIANNA KEILAR, CNN ANCHOR: And I'm Brianna Keilar in for Heidi who is starting maternity leave.

HARRIS: And you'll stay informed all day in the CNN NEWSROOM. Here's what's on the rundown.

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