Return to Transcripts main page

American Morning

Fight in Iraq: 42 Killed; Obama Addresses Pastor's Comments; Solutions in Delegate Drama; Oil Shoots Up; What Controversy: Obama Even With Clinton

Aired March 27, 2008 - 06:00   ET

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


JOHN ROBERTS, CNN ANCHOR: We begin with breaking news out of Iraq this morning, where 42 people have been killed in the Shiite city of Kut as fighting between Iraqi Security Forces and militia fighters spreads for a third straight day. Much of the fighting has been centered in Baghdad and in the southern oil city of Basra. Iraqi troops are continuing the crackdown on fighters loyal to radical Shiite cleric Muqtada al-Sadr.
CNN's Kyra Phillips is live in Baghdad for us this morning. Kyra, you just got back from the streets. What's the very latest?

KYRA PHILLIPS, CNN CORRESPONDENT: Yes. What I can tell you right now, this is exactly what we were concerned about and what leaders throughout this country were concerned about, John, and that is more attacks in Baghdad and violence spreading in Baghdad. I don't know if you can hear the sounds of the sirens and the gunshots right now, but I sure can, and it's all happening because of the mortar attacks on the International Zone.

You know, the International Zone is where all the key military posts are from the U.S. Embassy to various bases to the Iraqi parliament. And those mortar attacks on the International Zone started as a message to Nouri al-Maliki when he had sent those troops into Basra to deal with the Shiite militants.

Now, just to give a little background, a little context to our viewers, you know, this started days ago in Basra, an oil rich city that everybody wants a piece of in this war-torn country. It's had issues with lawlessness. Nouri al-Maliki has gotten rid of the governor there, a number of generals in that area. He's concerned about the head of the police force in that area because of corruption, because of assassinations, because of theft. So what has started there is now spreading throughout the country.

You reported the number of deaths, for example, in Kut. Now I can tell you those mortar attacks already increasing on the International Zone as a message to the prime minister to get those Iraqi troops out of this fight.

ROBERTS: Kyra, the fact that it is now in Baghdad, Basra and Kut, which are three of the major cities there in Iraq, what does that say about the potential for it to spread even further, even more broadly there in Iraq?

PHILLIPS: There's great potential, John. I mean, this is a tremendous threat to the U.S. surge. And all these deals that have been cut with the various tribes, the various religious parties, even Muqtada al-Sadr himself had called for a cease fire and that had decreased the violence in this country.

So now, Nouri al-Maliki sends Iraqi troops to try to deal with what he says is an incredible problem with lawlessness in Basra. And you're seeing the reaction from the Shias (ph) in the various neighborhoods throughout Iraq now in Baghdad responding and showing allegiance to Muqtada al-Sadr. Hopefully, this will calm down at some point today but it just seems to be increasing as the days move forward -- John.

ROBERTS: All right. Kyra Phillips for us this morning in Baghdad monitoring the spreading violence there. Thanks, Kyra. We'll get back to you a little bit later on -- Kiran.

KIRAN CHETRY, CNN ANCHOR: Turning now to the race for the White House. Possible solutions being offered in the fight for the Democratic nomination and some signs that a long and damaging struggle is still ahead.

Senator Barack Obama speaking on the number one issue for Americans, the economy, this morning in New York. Senator Hillary Clinton also addressing the economy in North Carolina. There are also some new poll numbers out showing how Obama is weathering the storm over his former pastor's controversial comments, something Obama himself addressed at a town hall meeting.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: This is somebody who was preaching three sermons at least a week for 30 years. And got boiled down in the -- they found five or six of his most offensive statements, boiled that down into a half an hour sound clip -- or half minute sound clip and just played it over and over and over again. Partly because it spoke to some of the racial divisions that we have in this country.

(END VIDEO CLIP)

CHETRY: Here's how it breaks down in this morning's poll from NBC News and the "Wall Street Journal." It shows Barack Obama and Hillary Clinton in a dead heat, each with 45 percent. Forty-nine percent of those surveys gave Barack Obama a positive rating, and 32 percent gave him a negative rating. For Senator Clinton, 37 percent gave her a positive rating, 47 percent a negative rating.

Also again, we talked about the issue of the Reverend Wright speeches. Of the voters who actually saw the speech, 47 percent say that they believe he sufficiently addressed the issue. Thirty-seven percent saying they think he needs to address it a little bit further.

By the way, if the vote were held today, Barack Obama has a slight edge over Senator John McCain, 44 to 42 percent. McCain, though, has an edge over Hillary Clinton 46 percent to 44 percent. Speaking of Senator McCain, he's still pressing his case that the U.S. is succeeding in Iraq. Speaking to supporters in California, McCain took a swipe at his potential Democratic rival for not understanding the effects of a premature withdrawal.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: I believe a reckless and premature withdrawal would be a terrible defeat for our security interests and our values. Iran will also view our premature withdrawal as a victory. And the biggest state supporter of terrorist, a country of nuclear ambitions and a state of desire to destroy the state of Israel will see its influence in the Middle East grow significantly.

(END VIDEO CLIP)

CHETRY: McCain also tried to distance himself from President Bush's go it alone policy, insisting that if he's commander in chief he'll work to bolster relations with America's allies.

ROBERTS: Five minutes after the hour now. He says the way that we nominate and pick our president is broken. And now, Florida Senator Bill Nelson is laying out a sweeping reform package to fix it. Nelson, whose state is at the center of a battle over Democratic delegates, says his proposal would create six rotating regional primaries. Those contests, he said, would give large and small states a fair say in the nominating process. Nelson, a Clinton supporter, also says he wants to do away with the Electoral College and have the U.S. president elected by popular vote.

Another possible solution to the current Democratic dilemma, a primary just of superdelegates once the last regular primary votes are cast in June. Tennessee Governor Phil Bredesen explained how it might work. He talked with Wolf Blitzer on "THE SITUATION ROOM."

(BEGIN VIDEO CLIP)

GOV. PHIL BREDESEN (D), TENNESSEE: Get them together. Give the candidates a chance to come and make a pitch to them. And then get people on record. That obviously isn't the legal determination. That's got to wait for the convention. But I think it would have a huge moral force if one of the delegates got comfortably over the number they needed, we get on with running for president.

(END VIDEO CLIP)

ROBERTS: So far, no endorsement of Bredesen's idea from Barack Obama, Hillary Clinton or DNC Chairman Howard Dean.

As for former President Bill Clinton, he is warning voters in West Virginia to "saddle up" for a heated contest between Senators Hillary Clinton and Barack Obama.

(BEGIN VIDEO CLIP) BILL CLINTON, FORMER PRESIDENT OF THE UNITED STATES: I've already had four people come up to me and say, tell her not to quit. And I want to tell you something, my family is not big on quitting. You've probably noticed that.

(END VIDEO CLIP)

ROBERTS: Clinton also shut down suggestions that the personal crossfire will turn away voters telling supporters let's have an argument. What's the matter with that? Kiran?

CHETRY: There's some new questions this morning about a trip to Iraq by three members of Congress before the war. It turns out it was on Saddam Hussein's dime. A federal indictment saying that Hussein's intelligence agency paid for that trip back in 2002. The members of Congress were not named in the indictment but Representatives David Bonior, Jim McDermott and Mike Thompson visited Iraq at that time.

The investigation began with an Iraqi-born U.S. citizen who ran an Islamic charity in Detroit. That man was really a spy for Saddam and targeted members of Congress because he believed they were sympathetic to lifting sanctions against that country.

CNN's Kate Bolduan is live for us with more details this morning from Washington. Hi, Kate.

KATE BOLDUAN, CNN CORRESPONDENT: Hi there. Good morning, Kiran. Well, the man named in the indictment, the man charged with spying, his name is Muthanna Al-Hanooti, and he is an Iraqi-born U.S. citizen. But as you mentioned, the lawmakers are not named in the indictment, which is important.

But we do know that the three Democratic congressmen, Jim McDermott of Washington, Mike Thompson of California, and former Congressman David Bonior of Michigan, did make a trip to Iraq at the time courtesy of an Islamic charity called Life for Relief and Development. And this is the charity that Al-Hanooti held a position with.

McDermott's office says that the trip was a fact-finding mission in the run up to the U.S.-led invasion in Iraq, and that they went in order to learn as much as they could before voting on whether or not to commit troops. Now according to the indictment, Al-Hanooti chose the three congressmen because he believed they were sympathetic to lifting the economic sanctions against Iraq that were in place at the time.

Congressman Thompson defends the trip. In a statement he says, "The troop was approved by the U.S. State Department. The organization sponsoring the trip was licensed by the Office of Foreign Assets of the Department of Treasury and the United Nations. Obviously, had there been any question at all regarding the sponsor of the trip or the funding, I would not have participated."

Now, the indictment does not implicate the congressman in any way and justice officials stress that the congressman didn't have any knowledge of the connection to Saddam's government and therefore, of course, they are not accused of any wrongdoing. Al-Hanooti, on the other hand, is charged with spying for Saddam Hussein's government and right now, he is out on bail -- Kiran.

CHETRY: Kate Bolduan for us in Washington today. Thanks.

ROBERTS: Nine minutes after the hour. Alina Cho joins us now with other stories new this morning. And welcome back to you after a few days off.

ALINA CHO, CNN CORRESPONDENT: Thank you.

ROBERTS: Good to see you.

CHO: Had a little bit of rest, guys. Good morning all of you, and good morning everybody.

New this morning. Delta Airlines says it plans to announce whether the airline will cancel more flights today while engineers inspect two types of planes in its fleet. Now, hundreds of passengers still waiting to get home this morning in Atlanta's Hartsfield-Jackson International Airport. There you see somebody sleeping in the terminal. Delta canceled dozens of flights last night and reinspected the wiring on more than 130 MD-80 and MD-90 jets. American Airlines also canceled 200 flights earlier in the day for the very same reason.

In Los Angeles, officials are trying to determine the cause of an underground explosion that killed a veteran firefighter. Firefighters were investigating smoke coming from manholes when the blast occurred yesterday afternoon. It happened in the utility room of a building near Los Angeles International Airport. The blast ripped through the walls and forced authorities to shut down a major commercial strip in the area. A second firefighter was seriously injured.

Well, after 16 days and 6.6 million miles, the space shuttle Endeavour finally touched down last night at the Kennedy Space Center. There's the landing there. The return, by the way, was delayed a bit due to cloudy weather. And don't worry about the flames you see on the top of Endeavour, NASA says that's normal. Exhaust from the shuttle's power system are much easier to see during a night landing.

And happy anniversary to one of the best known drugs in the world. We're talking about the little blue pill. Ten years ago today, Viagra was approved by the FDA. And over that time, an estimated 30 million men have been prescribed it and millions more probably took it without a prescription. We're going to talk to Dr. Sanjay Gupta about the medical impact of Viagra, but also the huge cultural impact, including those famous commercial. Bob Dole, of course, the spokesman for many years and then there are all of the jokes.

CHETRY: That's right. I was thinking we should have a clip of late night jokes on Viagra over the years. It would take the whole show though.

CHO: $1.7 billion in sales last year. ROBERTS: Wow.

CHO: Incredible.

ROBERTS: Wow. Talking about things going up, oil prices going up --

(LAUGHTER)

(CROSSTALK)

ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: I was wondering what exactly you're talking about.

Things going up, oil prices. I am here with my big barrel. It is $105.90 --

CHETRY: Your barrel.

VELSHI: Yes. It's big.

CHETRY: It's a big blue barrel.

VELSHI: Big blue barrel, right. $105.90 is where oil settled yesterday. That was a big jump, $4.68 just in one day. And, by the way, bad news going up even this morning. $105.90 is where it settled yesterday. It's up overnight almost $2 more, $107.70 fluctuating in the $107 area right now. That puts your gas prices right now at $3.27 for a gallon of self-serve unleaded. But the Consumer Federation of America, by the way, that's $3.14 compared to a month ago, $2.60 compared to a year ago.

Consumer Federation of America says that if oil stays above $100 a barrel as it has been for sometime, we are likely to see as much as a 75 cent increase per gallon between now and Memorial Day. Now, so far, we've had estimates of $3.50 on average or $3.75 as sort of maximum between now and Memorial Day. So this one pushes that up by another quarter. There are some states, two or three already that have been paying above $4 on average. So we are going to see a national average of $4 a gallon before Memorial Day, according to the Consumer Federation of America.

We're all in for some tough times. And, of course, John and Kiran, as you know, the biggest issue that we've been facing from our viewers and Americans as we've been polling is not just the economy in general, but inflation and energy prices in specific. So that's a big -- that would be a lot of sticker shock if we actually get that.

ROBERTS: I have a question for you about the barrel because we've been getting some e-mails --

VELSHI: Do I actually live in it?

ROBERTS: How many gallons is the barrel?

VELSHI: That's a 55-gallon barrel. ROBERTS: Uh-huh!

VELSHI: Oil is measured in 42-gallon barrels.

CHETRY: Why did you say uh-huh?

ROBERTS: Because we've been getting lots of e-mails from people saying he's got a 55-gallon barrel, not a 42-gallon barrel.

(CROSSTALK)

VELSHI: Yes. You know, you really can't really get 42-gallon barrels of oil contractors sold in groups of 1,000, so you buy 42,000 barrels of oil.

ROBERTS: So this is just a representation.

VELSHI: 42,000 gallons of oil at the same time.

CHO: That thing is not real.

VELSHI: No, it's a real barrel. It just happens to be 55 is the standard size for barrel. Oil is really shipped. It's not put in barrels.

ROBERTS: Got you.

CHETRY: Everyone knows that.

ROBERTS: OK. So we've cleared it up and you can stop e-mailing. It's the representation of an oil barrel.

VELSHI: That's right.

ROBERTS: Thanks, Ali.

VELSHI: All right.

ROBERTS: Economy is the voters number one issue of concern. Later on today, join Ali Velshi and Gerri Willis, and the rest of the CNN money team. "ISSUE #1" Noon Eastern, all this week right here on CNN.

CHETRY: And you're watching the "Most News in the Morning." Still ahead, the floodwaters keep moving in Arkansas. Some areas may finally be in the clear, but things are about to get worse in other places.

Rob Marciano is here to show us where coming up.

Also, how does Hillary Clinton think she can beat Barack Obama for the nomination? Well, she spoke exclusively with "Time"'s Mark Halperin. He joins us next with more on that conversation. And a breakdown of some of the newest polls out there and the question about whether or not this is getting too ugly for the Democrats. Coming up next on AMERICAN MORNING. (COMMERCIAL BREAK)

CHETRY: Welcome back to AMERICAN MORNING. "ISSUE #1," the economy, is the focus on the campaign trail today. Both Democrats, Hillary Clinton and Barack Obama, have major speeches coming up in the next few hours. And Barack Obama is also still talking about his former pastor, the Reverend Jeremiah Wright. This morning there is evidence that the controversy probably didn't hurt him as bad as some thought.

A "Wall Street Journal" NBC News poll out today shows that even after weeks of negative headlines, registered Democrats are evenly split between Clinton and Obama. Joining us now Mark Halperin, author of "The Page" at Time.com, joins us now this morning. There were some other interesting things -- good to see you, by the way, -- of this latest polling which is showing that Hillary Clinton's negative seems to be on the rise as well. In a news cycle where there's been a lot of negativity at Barack Obama, why is she suffering?

MARK HALPERIN, SENIOR POLITICAL ANALYST, "TIME": Maybe Reverend Wright could start appearing in ads for Obama, it looks like. Maybe, he didn't hurt as much. This is just one poll, but the "Wall Street Journal"-NBC poll is a solid one. And it does indicate that this was not a devastating event for his campaign.

Did it help him? I don't think so, and it could still hurt him in Pennsylvania, the state that votes next. But Senator Obama has a lot of support still. His image is more favorable than Senator Clinton. And in this poll, as you said, her image declined. People started to look more unfavorably of her. Maybe because they don't like the negative campaigning she's doing. Although Senator Obama's campaign has been pretty negative of late, too, and that does not seem to have affected his image as much.

CHETRY: Did this whole Bosnia misspeaking about the sniper fire on the tarmac hurt her?

HALPERIN: It could have. It kept her from talking about what she wanted to talk about. As you said, today they're both talking about the economy. And what some Democrats are hoping is even though they don't differ that much on the issues, they get away from Reverend Wright, from Bosnia, the Bosnia flap, and they start talking as they are today about the economy. Part of that is it relates to the press and whether we cover what they're saying about the big real issues, the economy and Iraq, probably first and foremost, and less about these flaps.

CHETRY: Well, speaking of that, Barack Obama was back talking about Wright yesterday. Let's listen to what he said.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: My former pastor said some very objectionable things when I wasn't in church on those particular days, and I have condemned those outright. I do have to remind people though that this is somebody who was preaching three sermons at least a week for 30 years and got boiled down -- I hope people don't get distracted by that.

(END VIDEO CLIP)

CHETRY: He's saying he's hoping they don't, but why is he still bringing it up on the campaign trail?

HALPERIN: Well, people still have questions about it. His campaign, though, is that the one speech he gave as well received as it was didn't put this to rest. I joked before about Reverend Wright being in ads for Senator Obama. I don't think that will happen.

I don't think Senator Clinton is going to use it as an ad, although she did raise it this week for the first time in an interview I did with her. She said, I think people are still making up their minds about what they think about this issue. So I wouldn't be surprised as we go forward to the Pennsylvania primary now, still a couple of weeks away, if in Pennsylvania at least, this issue gets a more full hearing, and perhaps it jumbles the race a bit more than it seems to have based on the national poll that we talked about.

CHETRY: Yes. And this latest poll seems to be adding to the growing evidence that it's getting ugly among the Democrats and ugly enough that those who are supporting one over the other may actually jump to John McCain. In fact, one-fifth of voters saying that if their nominee doesn't get the nod, they would vote for McCain. How unusual is that, and what is the effect?

HALPERIN: Well, I think the unusual variable here is not the fighting in the nomination battle between Clinton and Obama. That happens whenever you have a competitive nomination. But I think what's unusual is McCain, and why so many Republicans thought he would be the strongest nominee. He has always had incredible appeal to independents and even to Democrats and Democrat-leaning independents.

Even though there are a lot of ways to argue that the Democrat, whoever it is, is going to be the favorite against McCain, he is a strong candidate to reach across the aisle. And at a time when his image is basically being controlled by his campaign...

CHETRY: Right.

HALPERIN: ... you see Clinton and Obama fighting, defining him for a lot of Democrats. I think most of those Democrats will come home.

CHETRY: She also brought up something interesting to you, which is saying that not only superdelegates but pledged delegates -- this is the outcome of the actual voters at the polls in various districts around the country -- don't necessarily have to go with who won their district either.

HALPERIN: That's right. Look. They're pledged delegates is what they are often called. But what they really are are elected delegates. Senator Clinton is technically right. They can vote like the superdelegates anyway they wish. She brought it up on her own. It's come up a few other times, and the Clinton campaign has always said, we're not poaching, we're not going after these people elected for Obama. I think Senator Clinton thinks perhaps they'll just float magically over to her side.

CHETRY: Doesn't it seem unseemly and perhaps a little bit desperate if this is a conversation that's happening?

HALPERIN: Well, I don't know if it's unseemly or desperate. What it is is an attempt to try to give herself as many options as possible. She needs superdelegates. She needs regular delegates. She needs maybe one more stab to try to get the Florida and Michigan delegation seated.

She doesn't have a big margin of error. I think this is her way of trying to keep as many options open as possible. I don't think it's very likely.

CHETRY: That would be overturning the voters.

HALPERIN: Well, it would be. But under the rules, let's say there was some cataclysmic event, and some superdelegates and delegates who previously committed to Obama or elected for Obama said he wouldn't be our strongest nominee.

Again, it would take a big event. But you know what? The only way she's got a chance to be this nominee, the nominee, is if there is some big intervening event that really impact how people see Obama. And if that happened, you would see some superdelegates, which she hopes some elected delegates, which again, extremely unlikely, and it is the case that it gives the Obama campaign a chance to argue a very strong point that they argue regularly, which is Senator Clinton is trying to change the rules in some ways.

CHETRY: Right. Mark Halperin, senior political analyst for "Time" magazine. Always great to see you. Thanks.

HALPERIN: Thanks.

ROBERTS: There are some ominous warning signs about deep divisions within the Democratic Party and what voters might do if their preferred candidate does not win the nomination. At least two polls show there would be massive defections to John McCain among angry Democratic voters. More than 20 percent of Senator Hillary Clinton supporters say they would vote for McCain if she loses the nomination. About the same number of Obama supporters would defect if Clinton becomes the nominee.

And that brings us to this morning's "Quick Vote" question. If your candidate does not win the nomination, will you vote for McCain? Obviously, we're calling all Democrats on this one. Cast your vote at CNN.com/am. We'll have the first tally of votes coming up later on this hour.

And the Democratic candidates have big campaign events on the economy lined up for today. You can watch live coverage of both speeches on CNN.com. Obama's address begins at 9:15 Eastern this morning. Clinton's begins at 10:30 Eastern. Just follow the links at CNN.com to the live event.

FEMA investigators finally able to get out in Arkansas and survey the massive flood damage there, but the worst may not be over. Find out what's in store for today ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

ROBERTS: Coming up at 27 minutes after the hour, Rob Marciano at the weather update desk for us this morning, tracking extreme weather in Arkansas today. Good morning, Rob.

ROB MARCIANO, AMERICAN MORNING METEOROLOGIST: Good morning, John. Yes, we can't shake this flooding and there's going to be an ongoing threat I think as we head towards next week. We'll show you pictures and then we'll go over the maps here.

The White River there, record flooding of historic proportions, greater than even 1982 flood there, is now moving downstream and still has yet to crest in the southern part of the state. Here is where the flood warnings are posted still across eastern parts of Arkansas. And again, as the White River gets into the Mississippi River, these are the areas right here that have yet to crest. We'll see crest upwards of 33 to 35 feet later on today and then over the weekend.

Where is our moisture right now? Well, as luck would have it, there's a little bit of thunderstorm activity across the northern part of the state that will be shifting south. And we'll shift the map up towards the north to show you where the next batch of rain is going to be moving in, because all this has to flow in through the Mississippi river as well.

A lot of it today is going to be over the Ohio River Valley. Here you see it right over the river itself, anywhere from one to two inches of rain expected to fall over the next 24 to 36 hours in this area. And then, of course, the Ohio flows down to the Mississippi which has to get down to the Gulf of Mexico.

So Baton Rouge, we've talked about that city. They are in the flood warnings for the next week at least. Then we have more rain in the forecast not only for the Midwest today. But this is going to be a stubborn pattern that I think we'll be with us through the weekend. And right now, our longer-term models have a bull's eye with the potential of seeing anywhere from three to five inches of rainfall by Monday or Tuesday in the Arkansas area, which was the worst hit, and still seeing that record flooding today.

So we certainly hope that those forecast models shake out to be wrong but right now, they are indicating that another batch of heavy rain heading towards the flood prone areas as we go through the weekend. So we'll be keeping a close eye on that. John, back up to you.

ROBERTS: Getting it where we don't need it and not getting it where we do. Rob, thanks so much. We'll talk to you soon. ROB MARCIANO, CNN METEOROLOGIST: All right.

ROBERTS: Kiran?

CHETRY: Time for our "Hot Shot" this morning. And this is Tracy (ph), the golden retriever, who wandered away from her dog owners on a walk into a frozen lake. This was in Rochester, New York. There's the poor thing shivering in the water. She fell through the ice and was trapped 50 feet from shore, but a rescue team was able to get out there on that inflatable ice raft.

There you see Tracy a little bit wet, a little bit cold but doing fine. Her owner says that she's going to give the poor thing some steak.

ROBERTS: I had a golden retriever once that just used to love to jump into the river in the middle of January.

(CROSSTALK)

CHETRY: They love it. Oh, really?

ROBERTS: Come back with icicles hanging off of him.

CHETRY: Oh, but there she goes walking away no worse for the wear.

If you have a "Hot Shot," send it to us. Head to our Web site CNN.com/am. Follow the link. And please include your name, where you're from, a little bit about the video or picture you're sending.

ROBERTS: You're watching the "Most News in the Morning." And coming up, a new development in a case that we followed very closely. A woman's death at the Phoenix Sky Harbor Airport. Now her family is set to face off against the state. But do they have a case? Sunny Hostin will check in with us, coming up.

And the hottest thing in your car is not your stereo or your CDs. Thieves have got their eyes set on your GPS. What you need to know before you get behind the wheel or actually out from behind the wheel.

Plus the top stories when AMERICAN MORNING comes right back.

(COMMERCIAL BREAK)

JOHN ROBERTS, CNN ANCHOR: Welcome back to CNN. It is Thursday, the 27th of March. Breaking news to tell you about this morning.

KIRAN CHETRY, CNN ANCHOR: That's right. A lot going on in Iraq today. At least 42 people have been killed in the Shiite City of Kut as clashes between Iraqi security forces and militia fighters spread beyond Baghdad. This fighting has now entered the third straight day. Much of the violence in the capital and further south in Basra.

Radical Shiite cleric Muqtada al-Sadr is calling on the Iraqi government to end its crackdown on his fighters. Government though saying it's only targeting outlaws who are ignoring al-Sadr's own ceasefire order. Iraq's prime minister has given the fighters until tomorrow to drop their weapons or face tougher measures.

And to politics now, some major donors to Senator Hillary Clinton are faulting House Speaker Nancy Pelosi for suggesting how the Democratic contest should be settled. Pelosi had said that she believes the candidate with more pledged delegates should be awarded the nomination by the superdelegates. And right now, that's Senator Barack Obama.

In a letter to Pelosi, the donors' group urged her to, quote, "reflect a more open view to the optional independent actions of each of the delegates at the national convention." Pelosi has not endorsed either candidate so far.

And the Clinton camp is looking to local delegates to challenge election results. Senator Clinton told reporters that every delegate is, quote, "free to make up her or his mind however they choose." The last time a major candidate lobbied delegates to switch sides was back in 1980. That's when Ted Kennedy's campaign tried to recruit delegates supporting the eventual nominee, Jimmy Carter.

ROBERTS: Well, today the economy is issue number one on the campaign trail. Senator Clinton will be talking about it in North Carolina. And here in New York City, Senator Obama is expected to give what his campaign calls a major address on economic policy. But at a town hall meeting yesterday, Obama spoke out about the controversial comments made by his former pastor.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: This is somebody who was preaching three sermons at least a week for 30 years. And got boiled down into five or six of his most offensive statements -- boiled that down into a half an hour sound clip or a half minute -- a half minute sound clip and just played it over and over and over again. Partly because it spoke to some of the racial divisions that we have in this country.

(END VIDEO CLIP)

ROBERTS: And on the Republican side, Senator John McCain giving one of his most extensive policy speeches since securing the delegates needed to win the Republican nomination. Yesterday in Los Angeles, he touched on everything from global warming to free trade.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: I really am convinced that long-term, that free trade and open markets and economic progress is the ultimate solution to most of our challenges in our own hemisphere. And I know that most of you agree with that. But I think free trade agreements are very important. I'm unashamed and unabashed offender of NAFTA. I'm an unabashed and unashamed supporter of free trade agreements. In fact, it would be interesting, my friends, it would be an interesting proposal and I'd like to make it, to have a free trade agreement between ourselves and the European Union.

(END VIDEO CLIP)

ROBERTS: Well, today McCain heads to Salt Lake City to join former foe Mitt Romney at a fundraiser.

CHETRY: Well, it is 36 minutes past 6:00 here on the East Coast. Ali Velshi, "Minding Your Business." So, all of the candidates and the current president, all talking about the economy yesterday and President Bush with a rosy outlook.

ALI VELSHI, CNN CORRESPONDENT: Yes. While John McCain was giving the speech in Los Angeles actually the very same time President Bush was in northern Virginia speaking to some small business owners and he was asked sort of about the stimulus checks that are going out starting the first week of May. His response -- I think we might have it here. Listen to what he said about the stimulus checks.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: There's a rough patch right now in our economy, but I'm confident in the long term we'll come out stronger than ever.

(END VIDEO CLIP)

VELSHI: Because of the stimulus checks. Now, here -- a lot of people have been particular in saying is that really the case? Will the stimulus checks going to do it? Most estimates show that out of the $150 billion or so that's going to go out, probably 30 or 40 billion will actually get spent.

We've had polls that show the people will pay it down credit or they'll save the money. That still is a fair amount of money and that could help the economy. The American economy is remarkably resilient. So, the fact that President Bush says it will come back stronger than ever before is something he can make an argument for. Whether the stimulus checks are going to be the reason for that remains doubtful. There's a long road ahead.

CHETRY: Our latest polling showed 50 percent of people said they are going to use it to pay off debt.

VELSHI: Yes. I mean that would still be actually positive. Because we've seen other reports that show yet fewer would. So that if 50 percent of the people used it, you'd do better than that.

CHETRY: Pay off debt and others have saved, so --

VELSHI: And the other thing is even if you spend it, where would you spend it? You have to spend it in a way that stimulates the economy. So, it's -- you know, I think the president probably can sit there and say this isn't going to work. He also can't sit there and you know -- he's stuck between a rock and hard place. But I'm not sure this is going to cause the economy to come roaring back better than ever before. However, the bright side is that the economy does bounce back, these are cycles, and it will come back eventually.

ROBERTS: You know that new warnings out today that the people who got money in home equity loans.

VELSHI: Right.

ROBERTS: Or exposure with home equity loans may be next big hit.

VELSHI: Sure. It's credit, it's all credit. It's all borrowed money. It's going to come back and bite you somewhere.

ROBERTS: Thanks, Ali.

VELSHI: OK.

CHETRY: Still ahead, the economy, it's "Issue Number One." Ali, Gerri, and the rest of the CNN money team are going to be discussing it 12 noon today and tomorrow right here on CNN.

ROBERTS: It's a story that we've been following and it's one of cnn.com's most popular right now. A passenger handcuffed at the Sky Harbor Airport in Phoenix, left unattended, later found dead. Now her family is seeking millions while police are pointing fingers. We'll have the very latest for you on that.

And how can you stop thieves from stealing the GPS from your car? Taking it off the window and hiding it in the glove box apparently not good enough. We'll tell you how to get it completely out of sight and erase all traces that you even have one, ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

ROBERTS: 42 minutes after the hour. New this morning, Carol Anne Gotbaum's death in a holding cell at Sky Harbor International Airport in Phoenix last September drew national attention. Now attorneys for her family have filed an $8 million claim against the city and its police department. It's the first step in filing a wrongful death suit. AMERICAN MORNING's Alina Cho has been following this case from the beginning and she joins us.

Good morning.

ALINA CHO, CNN CORRESPONDENT: Hey, good morning. Good morning, Sunny. Hopefully my mike is working there. We go. You know, when we're talking about this, it's been six months. It's hard to believe, John, you know. And this really wasn't a question of if it would happen but when. It has been six months since Carol Ann Gotbaum died at Phoenix Sky Harbor Airport.

Now her family says maybe she would be alive today if Phoenix police had handled things differently. Now, the Gotbaum family is seeking $8 million. In the notice of claim, as it's called, this is the first step in filing a wrongful death lawsuit. A lawyer for husband Noah Gotbaum says Carol Anne, a 45-year-old mother of three was treated as if she was a dangerous criminal rather than the quote, sick, intoxicated, and vulnerable person that she was.

In fact, Noah Gotbaum tried repeatedly to warn airport authorities about her condition in a series of frantic phone calls.

(BEGIN VIDEO CLIP)

NOAH GOTBAUM, CAROL ANNE GOTBAUM'S HUSBAND: They are waiting for her down in Cottonwood at the rehab center down there.

COMMUNICATIONS: OK.

GOTBAUM: She is suicidal. Obviously, she has been -- she is alcohol abusive but she is also in deep depression. And the police have to understand that they are not dealing with someone who has been just drinking on a flight.

(END VIDEO CLIP)

CHO: The problem is Carol Anne was already dead by the time that first call came in. Late yesterday, the city of Phoenix and its police department wasted no time responding to the Gotbaum claim placing the blame squarely on the family for allowing Carol to travel alone.

(BEGIN VIDEO CLIP)

ANDY HILL, PHOENIX POLICE DEPARTMENT: We deeply respect the family and the loss that they feel. However, things are what they are. The facts are as they occurred. The officers had no idea what the condition was of Miss Gotbaum. They had no idea about her medical history or prior history, and that information was not conveyed to those officers.

(END VIDEO CLIP)

CHO: Gotbaum was on her way to alcohol rehab in Tucson, Arizona when she missed her connection in Phoenix and became enraged. Airport surveillance video shows officers struggling to arrest her. She was taken into police custody for disorderly conduct and then left in a holding cell alone. An autopsy showed she died after she accidentally strangled herself while trying to get out of her handcuffs. And who could forget that airport surveillance video.

John, hard to believe it's been six months. Again, it wasn't really a question of if this would happen but when. The family attorney, by the way, we should mention and we learned this overnight is going to be holding a news conference later today. We should hear more from the family's representatives.

ROBERTS: This is the same attorney in Phoenix that was representing her earlier on.

CHO: Michael Manning.

ROBERTS: Right. OK.

CHO: That's right.

ROBERTS: Well, let's get some legal analysis on this. Sunny Hostin is here with us this morning. You have been combing through these documents that were filed in this case.

SUNNY HOSTIN, CNN LEGAL ANALYST: That's right.

ROBERTS: Do you think that the family has got a case here?

HOSTIN: Well, when you say I have been combing through these documents, they are very, very heavy documents, voluminous, robust. The family only have to file a notice of claim, as Alina said, which is just a letter, usually, typically that indicates this is our claim, we want to talk. And it usually avoids a lawsuit, John. It usually ends up in a settlement.

The family filed over 200 pages. And the family specifically says, you know, the police department knew that she was mentally unstable and they treated her like a criminal instead of someone that was mentally unstable. Now, in response, John, what's so interesting to me is that the police department had 60 days to respond. They responded immediately. As Alina said placing the blame squarely on the family.

They said it was the family's fault that she was alone, not the officers fault. That they appropriately arrested her for disorderly conduct. Then what's very interesting is that they say in making this claim, the Gotbaum Family is apparently assisted by their celebrity pathologist. And so that tells me this is probably going to court. There's going to be the battle of the experts here. And the police department denies, denies, denies.

ROBERTS: You know, we've been seeing on the screen beside you here that there is the surveillance tape. And the attorney when we talked to them, some you know, five or six months ago said that they've did not have any argument with how she was treated out there in public. And we've seen all of that on this surveillance video. He says where the problem arises is when she was put into that holding cell from which, as we understand, there is no surveillance video.

HOSTIN: That's right.

ROBERTS: So how does that factor into the case.

HOSTIN: Well, we know that the video -- if it goes to trial, the video is going to be instrumental. It's going to be shown to the jury. But you're exactly right, John, what's important is what you cannot see. And that's going to be the battle of the experts, the battle of the people that are testifying. I can't wait to see what happens here. It's going to be fascinating.

ROBERTS: Well, we are following this thing from the beginning. And both have done a great job. So we'll keep following it going forward.

Sunny, Alina, good to see you. Thanks. Kiran?

CHETRY: Well, a GPS in your car is a big target for crooks. And they can tell that you have one even when you tried to hide it. But we're going to tell you how to keep from getting ripped off when AMERICAN MORNING comes right back.

(COMMERCIAL BREAK)

CHETRY: Welcome back to AMERICAN MORNING. Nearly 10 million Americans now use a portable GPS system in their car according to AAA. And those devices were attempting target for thieves even if you think you can hide them. Our Veronica De La Cruz is on this for us. She's been in Hicksville, New York this morning.

What did you find, Veronica?

VERONICA DE LA CRUZ, CNN CORRESPONDENT: Hey, good morning to you, Kiran. You know, we're here at the Long Island Railroad Commuter Station. And take a look behind me. It's not even 7:00 in the morning and already this parking lot is jam-packed with cars. There are hundreds of them. And that is why GPS thieves consider spots like this prime targets.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: Turn left.

DE LA CRUZ (voice-over): Soothing sounds for drivers who depend on their GPS. But sales of this hot ticket item have skyrocketed, so have cases of GPS theft. Seems easy enough to prevent, just hide the device after you park, right?

UNIDENTIFIED MALE: There's a place in the glove compartment that you can lock it.

UNIDENTIFIED FEMALE: And there's a box under the seat where you put it (INAUDIBLE) but then everybody knows.

DE LA CRUZ: Everybody, including car thieves, who can get up to $100 for a GPS on the black market.

DETECTIVE SERGEANT ANTHONY REPALONE, NASSAU COUNTY POLICE: You can have a high-end luxury vehicle or you can have a small compact car if you want that system.

Just outside New York City in Nassau County, about 800 GPS devices were stolen from cars in 2007. Already this year, about 450 have disappeared.

REPALONE: In a matter of seconds, it's taken off the windshield.

DELA CRUZ: Detective Sergeant Anthony Repalone says thieves look for cars like this, which still have the GPS mount in place.

REPALONE: There's no device but most people would probably take a chance and put the device in the center console, the glove compartment, under the car seat. So thieves may take a chance, now break this window if this car is locked, break the window, get access into the vehicle and look for that device.

DELA CRUZ: Even a ring on the windshield left by the GPS signals to a thief that there's one hiding in your car. Repalone suggest wiping off the windshield before leaving your car, take any extra time to remove the device and its telltale signs may prevent that costly break in.

REPALONE: The damage to the windshield, couple hundred dollars, stolen device, several hundred dollars, so the person who owns this is now out to pay this $700 to $800.

DELA CRUZ: That's enough to make you think twice about leaving any signs of a GPS in your parked car.

UNIDENTIFIED FEMALE: Recalculating.

(END VIDEOTAPE)

DELA CRUZ: So Kiran, I think it was just the other day you and I were discussing these two-way GPS navigational systems that are hitting store shelves today. You know what, they are not cheap. It's going to cost you $600. So you want to protect your investment. And there are three things you want to remember every time you leave your car. You want to remember to take down the mount.

Hide that mount so thieves don't believe that you even own a GPS, and then wipe down the ring whether you mount it to your windshield or your dashboard, wipe down the ring. And last but not least, forget about hiding it under your seat or even in the glove compartment, simply take it with you. That's all I can say.

Kiran?

CHETRY: Wow. That's a lot of effort. I know you don't want it to get stolen. Keep the win decks handy so you can wipe off the ring. All right, Veronica, thanks.

ROBERTS: Not as much effort as getting lost.

CHETRY: That's right.

ROBERTS: There you go.

CHETRY: Or having to go buy a new one.

ROBERTS: True, absolutely. This morning, there is some ominous warning signs about deep divisions among Democrats in this chaotic primary seasons. At least two polls out show about a fifth of Hillary Clinton supporters and the same number of Barack Obama's backers would vote for Senator John McCain if their candidate does not win the nomination.

And that brings us to this morning's "Quick Vote" question. Democrats we're calling on you this morning. If your candidate does not win the nomination, will you vote for John McCain?

Right now 50 percent of you say yes. 50 percent of you say no. So obviously our numbers are a little higher than what some of these other polls are finding this morning. Cast your vote for us at cnn.com/am. We will continue to tally your votes throughout the morning. That's pretty impressive, isn't it?

CHETRY: We'll see it change throughout the show though. You still got time to weigh in.

ROBERTS: And you can watch a live coverage by the way today of speeches on the economy by both Democratic candidates on cnn.com. Obama's address begins at 9:15 Eastern, Clinton's begins at 10:30. Just follow the links at cnn.com to the live event.

Breaking news in Iraq to tell you about this morning. 42 people killed in one city as fighting enters a third straight day. Iraqi forces trying to suppress fighters loyal to a radical Shiite cleric. And cleric now asking for Iraqi troops to stop the offensive. Why they say they can't. That's coming up.

And flames race through an apartment building in the early morning hours. The desperate race to save lives ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

CHETRY: Fight for the White House.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: I hold my position because I hate war.

(END VIDEO CLIP)

CHETRY: The candidates on the frontline.

(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: I'll take on anybody.

BILL CLINTON, FORMER PRESIDENT OF THE UNITED STATES: My family is not big on quitting.

(END VIDEO CLIP)

CHETRY: What Americans think of the drawn out battle. The "Most Politics in the Morning."

Not made in the USA.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: What you really have are the keys to the kingdom.

(END VIDEO CLIP)

CHETRY: Outsourcing passports? Is your security at risk on this AMERICAN MORNING. And welcome, glad you're with us. 7:00 a.m. here in New York this morning. And a lot going on in the political world today.

ROBERTS: Always is. Barack Obama in New York City this morning preparing to deliver his plan for the ailing economy a couple of days after Hillary Clinton did the same thing.

Meanwhile, a new poll out this morning shows that the controversy over his pastor does not appear to have hurt his support among likely voters. Obama and Hillary Clinton in a dead heat 45 to 45 in this new NBC News Wall Street Journal poll. CNN's Suzanne Malveaux is following the Obama campaign. She's here with us this morning.

We get so much e-mail here on AMERICAN MORNING. People saying Obama supporters saying, obviously, saying let the pastor thing go already, and yet he keeps bringing it up on the stump. And yet, he keeps bringing it up on the stump. Let's listen to what he said about it yesterday.

(BEGIN VIDEO CLIP)

OBAMA: We cannot solve the problems of America if every time somebody somewhere says something stupid that everybody gets up in arms and we forget about the war in Iraq or we forget about the economy.

(END VIDEO CLIP)

ROBERTS: Suzanne, would he be better to let this thing go?

SUZANNE MALVEAUX, CNN CORRESPONDENT: You know, you would think so. But the thinking in his own campaign is essentially we've got to get this out here. There are a lot of unanswered questions. There are primaries that are ahead here. There are contests that are very important, and particularly when it comes to white voters. So let's answer the questions. Let's answer those concerns. And this is better to exhaust this before the general election. So that is what he's doing.

It was just yesterday in Greensboro where it was kind of surprising. It was a town hall meeting. And in that context, he was asked about his faith and what does Jesus Christ mean to him. And then he started to talk about not only, you know, the golden rule and compassion for the poor but he started to bring up the idea of his pastor and trying to move beyond this.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.voxantshop.com