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Sputtering Economy for Middle-Class Families; Traumatic Touchdown in Texas; Candidates Back on Campaign Trail
Aired March 28, 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: Good morning. Good Friday to you, everyone. You're in the CNN NEWSROOM. I'm Tony Harris.
FREDRICKA WHITFIELD, CNN ANCHOR: And I'm Fredricka Whitfield. Heidi is on maternity leave.
HARRIS: Watching events coming into the NEWSROOM live this Friday, March 28th, here's what's on the rundown.
WHITFIELD: U.S. fighter jets land a hand in Basra, Iraqi troops calling an air strikes in their battle against the militants.
HARRIS: From middle class to food bank in just 90 days. Anatomy of one family's mortgage meltdown.
WHITFIELD: Sheer humiliation says this woman right here. Now she wants an apology from airport screeners.
Nipple rings won't fly.
HARRIS: Whoa! Whoa!
WHITFIELD: In the NEWSROOM.
HARRIS: And we begin this hour with breaking news out of Virginia. A possible arrest in an interstate shooting spree. CNN affiliate WSLS says one person has been arrested. That comes after state police search add home in Albemarle County overnight, the shootings occurring on Interstate 64. That is west Charlottesville. Police have been seeking at least two people. Six vehicles hit by gunfire before daybreak yesterday, two people were injured, but not seriously hurt. A 20-mile stretch of the highway was closed for about six outs while police searched for the shooter. The state police plan a news conference next hour and can you see it live right here in the CNN NEWSROOM.
WHITFIELD: Gun battles, curfews and a countdown. New clashes flare between Iraqi forces and militia fighters. Civilians caught right in the middle, hunkering down. Among them, Americans at the embassy. CNN's Kyra Phillips is in Baghdad. So Kyra, there is some developing news about Iraq's vice president. What can you tell us about that?
KYRA PHILLIPS, CNN CORRESPONDENT: A couple things have happened within the past couple hours, just a few minutes we were able to confirm that mortar attack on the fortified Green Zone did hit the office of Iraq's vice president. The number two to Prime Minister Nuri al Maliki. Tariq al Hashimi we're told is OK at this point but two guards are dead.
Since this fighting started, we saw a number of attacks on the international Green Zone, the International Zone, Fredricka, two people already killed in those attacks and, of course, this is a message to Prime Minister Nuri al Maliki to pull his forces out of Basra. Four days now this fighting has been going on between Iraqi troops and supporters of Shiite cleric Muqtada al Sadr. Fred?
WHITFIELD: And so meantime, what is at stake for the prime minister, al Maliki right now?
PHILLIPS: Well there is a lot at stake. This could increase tensions between the U.S. and Nuri al Maliki. That was the thought before, but if you heard the president yesterday, when he made his speech, he thought that, he made it clear he thought was Prime Minister al Maliki was doing was a very bold move, a very bold decision, that he supports Nuri al Maliki.
And everybody is asking when will he and his parliament be able to take over this country? Secure this country and take on all their operations whether it be political or military? So everybody has eyes on this. A battle, we haven't seen a battle like this in a number of months. U.S. not getting involved heavily at all. They say this is an Iraqi fight, they are adding air support to this fight, but that is it at this point. Fredricka?
WHITFIELD: Well, that's interesting. It sounds like you're saying. Iraqi forces aren't up to task, can't really handle all this. They want to. Meantime, President Bush painted a pretty optimistic view the situation on the ground. SO what really is the point at issue right now?
PHILLIPS: The reality check. Sure. I listened to that speech and the president was talking about U.S. soldiers handing out books to Iraqi kids. Isn't that wonderful? The president of the United States, he called for this war. He wants it to work out. He wants it to end peacefully. He wants to see the progress, it's a very controversial war, it's become a very unpopular war, of course he's going to step up to the mikes and tout all the positive thing. There are parts that are very positive, within this country, from the CLCs, the concerned local citizens, the sons of Iraq. They used to be supporting al Qaeda now have turn around and are working with U.S. troops and they are trying to protect their country. Al Anbar Province, we have seen tremendous progress there. Still you see the fighting in Basra and the escalation of that violence and how it's effecting the fortified Green Zone and now we are seeing a number of rocket attacks and mortar attacks. It's another reality check, Fred, that this country still has a long way to go.
WHITFIELD: Right.
All right. Kyra Phillips, thank you so much. From Baghdad. Tony. HARRIS: A U.S. military contractor is in deep trouble for reportedly supplying old degraded Chinese ammunitions to the Afghan army. The Miami based company called AEY is run by this man a 22- year-old Ephraim Davaroli. He is accused of providing Chinese made ammunitions to the U.S. military to sell to Afghanistan. That would be in violation ever the company's contract, and U.S. law. The Army has suspended AEY's contract and the company is under criminal investigation for claiming the munitions were made in Hungary. A House committee plans a hearing next month.
The White House says North Korea shouldn't be testing missiles while nuclear talks are stalled and North Korea reportedly fired off a series of missiles overnight. The show of force comes during increased tensions between the North and South. South Korea's president is dismissing the test as just ordinary military training.
WHITFIELD: The presidential campaign trail runs through several states today on the Democratic side. Hillary Clinton has stopped in Indiana. She attends a town hall meeting this morning and then ends the day with a rally. Indiana holds its primary May 6th. Pennsylvania is the next big contest for the Democrats and Barack Obama begins a six-day swing through the state today. He has a stop in Pittsburgh this morning, where he picks up an endorsement from the Pennsylvania Senator Bob Casey.
On the Republican side, John McCain attends a fund-raising luncheon in Las Vegas and McCain also launches his first TV ad of the general election today.
Meantime, the Democratic Party chief, urging candidates and their supporters to take it down a notch. DNC Chairman Howard Dean says the campaign should be careful not to hurt the party's chances of winning in November. On CNN's AMERICAN MORNING he called for the campaign to focus on the issues.
(BEGIN VIDEO CLIP)
HOWARD DEAN, DNC CHAIRMAN: Personal attacks demoralize the base. People are not going to vote for John McCain in the fall. They're going to know he's going to put more right wingers on the Supreme Court and that's a big difference between him and Hillary Clinton and Barack Obama, but we need to focus on Iraq, we need to focus on gas price, on mortgages, we need to focus on the economy. Those are the things people care about and they don't care about bickering over pastors and who said what in Bosnia.
(END VIDEO CLIP)
WHITFIELD: Dean says he thinks the disqualified delegates from Michigan and Florida will be seated once they reach an agreement with the candidates on exactly how to do that.
Well, they're both strong supporters of the war, and Democrats are trying to link them together. Where do John McCain and President Bush differ when it comes to Iraq? We're checking the facts later on this hour in the NEWSROOM. HARRIS: Keeping your wallets closed. New numbers out this morning on consumer spending adding to concerns about sluggish the economy. The Commerce Department says consumer spending rose just 0.1 percent last month, that is the weakest performance in 17 months. Economists are keeping a close watch on the numbers and consumer spending accounts for two-thirds of the total economic activity, the housing slump, the credit crunch and concern about jobs all taking a toll on consumer confidence.
The cost of filling up, going up. AAA says, that was big, wasn't that? That was a big -- triple. Gas rose almost a penny today. The average price of almost $3.28 a gallon is a cent lower than the record high reported earlier this month, but the price is about 65 cents higher than a year ago. California and Hawaii lead the nation with the highest average price. New Jersey has the lowest. Your money, your concerns, your questions, Gerri Willis is here in the house, in Atlanta, to answer, I think I hear Gerri. To answer viewer e-mail about finances coming up in about eight minutes, and keep watching CNN. Our money team has you covered, whether it's jobs, debt, housing or savings, join us for a special report. It is called "Issue #1," the economy, all this week at noon Eastern only on CNN.
WHITFIELD: We're going to shift gears quite a bit. Arkansas, a river on the rise. Take a look at that. A flood warning is out for the White River. Forecasters say flooding at Clarendon could be the worst in 25 years. At St. Charles, the river could rise several feet to levels not seen since 1973. Nearly half of Arkansas counties have been declared disaster areas by the governor. A weather service official says water in some areas could rise a foot a day over the next several days. It's not over yet.
HARRIS: It's not over yet.
WHITFIELD: Isn't that remarkable?
HARRIS: And Reynolds Wolf is here this morning. We have been watching this story, Fred, for the last three or four days, it seems. And Reynolds, if you would, good to see you, doctor. Give us the latest on conditions. And I know you're probably focus a bit on the snow in the upper Northeast as well today.
(WEATHER REPORT)
WHITFIELD: And remember, when the weather becomes the news remember to send us your iReports, go to cnn.com and click on iReport or type ireport@cnn.com into your cell phone. Remember to stay safe.
HARRIS: A different tune for the rapper T.I. Familiar with T.I. and his music? He has now pleaded guilty to weapons charges. T.I., whose real name is Clifford Harris appeared in federal court in Atlanta yesterday as part of an agreement, T.I. Pleaded guilt toy weapons possession charges dated back to last October. In exchange, he will have to spend the next year performing 1,500 hours of community service talking to youth groups about guns gangs and drugs and then he will be sentenced in a year in prison and three years supervised home detention. WHITFIELD: A troubled economy, that all of us know a local food bank for many middle class families. It's a painful reminder of how far they've fallen in recent months. One family's story in the NEWSROOM.
(COMMERCIAL BREAK)
HARRIS: All right. The sputtering economy. You have questions. Gerri Willis is here with answers right out of the e-mail bag. Gerri is here to ...
GERRI WILLIS, CNN CORRESPONDENT: That's it. Let's do it. I'm excited. Come on. I'm right here.
HARRIS: Don't rush me. You're here to not only handle viewer e- mails but you are here to do more business I want to talk about in a minute. Is that all right?
WILLIS: Yes. Yeah, yeah. All right.
HARRIS: You know how I like to talk about the things you're doing. Are you ready to dive in here?
WILLIS: Yeah. Let's go.
HARRIS: Rob in California writes, "Can you explain, Gerri, the financial impact as far as foreclosing versus a short sale? Why go through the pain of a short sale when it is simply easier to walk away and foreclose? Hand them the keys and allow them to foreclose?"
WILLIS: That's a great question. A lot of people are asking it right now. The answer, foreclosure and a short sale, hey, they look about the same on your credit report but devastating with a short sale. You sell your home. If you don't satisfy the mortgage amount, the bank may forgive the deficiency. If you simply walk away, your house sold at auction. If the amount doesn't satisfy the mortgage, you will be on the hook for the difference. That's the big difference there. Lenders can go after you for the money by attaching liens on your other property. That's not a good thing.
HARRIS: No, it's not. Mike from New Jersey has a question for you, Gerri. "I would like to invest in a 529 plan for my four-month- old daughter but am not sure how to pick a good plan that offers low fees, so important, and good returns?"
WILLIS: Well, good job, Mike, on being ahead of the game when it comes to college planning. The first place you should look, your own state that you can get an income tax deduction. That is the news. The bad news, you're in New Jersey. They don't have a state income deduction on your plan. In your case, you want to shop around, Mike, and look at other plans. Look at any state, actually, that has a plan, Vanguard, TIAA-CREF, that some of the lowest fees and it's all about the fees here. To figure out what your options are, a great Web site. Get out a pencil. Thinaid.org/savings. And of course, to get the most out of your money, focus on an S&P 500 plan, total stock index or a NASDAQ allocation fund. HARRIS: Gerri, Sarah in Idaho has a question for you. "In this time of economic uncertainty, should we be saving more or continue our focus of paying down our high interest student loan debts?"
WILLIS: Very smart question, Sara. Generally when the economy slows down, you want to focus on emergency fund. You may need that money. Make sure you have three to six months of living expenses. We say it all the time. That's available to you in bank account, money market, got to be able to get to it quick. Of course, the sad truth, it's hard to find a savings vehicle now that yields a lot of returns. Go to bankrates.com you can see CD rates and find out more details what returns are on short term investments.
HARRIS: Nice. All right. Derrick in Georgia writes, "Hello, Gerri. I'm 33 years old and have about $10k in a savings account. What types of investments would be the best for me to invest in?"
WILLIS: I love this question. Derrick, as a beginning investor, you're best off starting with an index fund. Broad market index matches as closely as possible the return of the overall stock market. This lets you test the waters. Returns are going to be less mutual funds. It's cheaper, we love that.
HARRIS: Yes.
WILLIS: Index funds, invest in whatever companies are in the index. Not magic. And you don't have to pay management fees which is also good. Check out Fidelity or Vanguard for low-cost options. I want to tell viewers, if you have questions send them to us at toptips@cnn.com. We love hearing from you. You know, we love talking to some of you about your question.
HARRIS: Look, may I have a moment now? May I please, Gerri?
WILLIS: More than one. You can have two.
HARRIS: Because there is so much to talk about with you right now. We'll talk about why you're in Atlanta in just a second, but "Issue #1," the economy, coming up at noon today. I know you're part of that big show. If you would, give us a bit of a preview what you and the rest of the team is working on.
WILLIS: Well, you know how we work this. Always thinking about jobs, your money, your retirement. We're thinking about your mortgage, of course. That's always critically important. We're really keeping an eye on your wallet. What's going on with your money and we answer e-mail. Definitely e-mail. Watch the show. And we're really helping people out with their money issues.
HARRIS: That's "Issue #1." Scratch that off the to-do list. Talk about OPEN HOUSE. Will you get an OPEN HOUSE show this weekend?
WILLIS: I love OPEN HOUSE. There's always OPEN HOUSE. There's always something really good on that show. We're talking about student loans and student debt. Because so many folks have student debt right now. How to manage it. We've got two experts and we have a great conversation coming about what to do with that, because people, young people, I'm telling you, they're saddled with so much debt.
HARRIS: You are -- that is so true. Now, and finally, you're here in Atlanta. Tell everyone why you're here in Atlanta.
WILLIS: Well, I wrote this book.
HARRIS: Yes, you did.
WILLIS: And it's call aide "Home Rich." And we're talking about it today. We're actually giving away copies of "Home Rich" in the CNN center between 10:00 a.m. and 11:30 a.m. Join us there. This book is all about thousand turn your home into the best investment it can be. I know a lot of people now are worried about their home, their home's value, their equity. We show you how to do it right.
HARRIS: It is so good to see you and you have you here in Atlanta. Busy schedule for you today, and we're going to stop down and get our copy of the book as well.
WILLIS: I want you to be there. You and Fred.
WHITFIELD: And I want to you sign it.
WILLIS: Thank you. Thank you. Thank you.
HARRIS: Good seeing you, thanks.
WILLIS: Nice to see you.
HARRIS: And how a dream purchase is still to come in the NEWSROOM turned into a nightmare for so many. Don't miss a CNN SPECIAL INVESTIGATIONS REPORT tonight. CNN teamed up with "Fortune" magazine to bring you "Busted: Mortgage Meltdown" That is at 8:00 Eastern only on CNN.
WHITFIELD: A popular allergy drug linked to suicide. Should you be worried? The findings, straight ahead.
(COMMERCIAL BREAK)
WHITFIELD: All right. The sneezing season is under way. And now one of the most popular allergy and asthma drugs is being linked to suicide. The Food and Drug Administration is looking into Singulair, it says there has been a handful of reports of people developing mood swings and suicidal tendencies while on the drug. Singulair has been on the market 10 years now. The drug-maker Merck says the investigation is based on reports, not clinical trials and the FDA says patients should talk to their doctors before stopping treatment.
HARRIS: Who is your daddy? The story that are coming my way this week. Or better yet, whose daddy are you? A new over-the- counter paternity test could tell the tale. Chief medical correspondent Dr. Sanjay Gupta is here checking it out for us. This week, you and me, this week. Sanjay, we've heard a lot ...
SANJAY GUPTA, CNN CORRESPONDENT: Your wife called and she wanted me to give you this.
HARRIS: I knew it was coming. I could feel the form and shape of it. I knew was coming.
WHITFIELD: Dangerous territory.
HARRIS: Yes it is. So Sanjay.
GUPTA: Hi.
HARRIS: Good to see you. We've heard a lot about these DNA tests that aren't necessarily 100 percent percent accurate. What do we know about this test and its accuracy?
GUPTA: This is the first over the counter paternity test. It's interesting. Here we are in 2008. You can go over the counter and buy a genetic test. That's a pretty remarkable in and of itself. As far as accuracy, the FDA doesn't regulate these over-the-counter tests. We did digging trying to figure just how effective they are. Independent experts say, look, get the DNA from the alleged father and from the child, you're in the 90 percent plus accuracy. If you also add the mother's DNA it's 99.9 percent accurate. According to independent experts we've talked to. Really, quick, Tony all you do, take these cotton swabs out of this kit here, they're in there, rub them on the inside of your mouth and takes a couple of minutes to do, and three to five days for it to come back. Costs about 20 bucks for the kit, $120 for the lab processing. Not cheap necessarily, but that's what happens here.
There are other sorts of tests out there we've talked about that aren't paternity tests but genetic tests, not paternity tests. I did this for a story trying to figure out the accuracy of these tests. Basically the same thing. Point it out again. Not taking a paternity test. My wife and I are very comfortable about that. Testing for other genetic tests. I'm going to see how accurate these are and report back to you on that.
HARRIS: That's great. Look at you. All right. And that's how you do it. You just take a swab and, OK, the inside of your mouth. I'm curious - the numbers sound good in the test, but I wonder if they might be admissible, good enough to be tested under court scrutiny? What do you think?
GUPTA: We asked the same question. A lot of forensic agencies do use tests like this as standards. The difference being, I'm not a lawyer, the differences seems to be a chain of evidence sort of thing. You have to witness someone doing it. You have to make sure the sample came from the right person. The bigger caveat here, what do you do with the information, as far as genetic tests go?
So we put together some tips to keep in mind if you're doing one of these, looking for diseases, for example. One of the tips is that positive results don't necessarily mean you're going to get the disease. An important thing. Don't think you do the test and definitely I'm going to get X, Y or Z disease. Genes are only part of the puzzle and doesn't tell you the severity of something. You could have a very mild form of something that never affects you, but it's important to keep in mind. Could be more information sometimes than you really know what to do with.
HARRIS: So are we to a place where we're getting close to the place where these tests can give you an idea of the likelihood of you developing a particular disease?
GUPTA: I think so. It's pretty remarkable. Sometimes they'll come back and say for example you have a 65 percent chance of developing breast cancer. In a woman's case. Heart disease. You have a 75 percent chance of developing it. What that should send a signal is, you've got start acting on that. Eating right, like do you. Exercising. Stuff like that. Making sure you ward off what your genes are sort of telling you.
HARRIS: All of the jobs this man has and still gets out to the gym and he works out.
GUPTA: And I get to talk to your wife. And she calls me and she tells me ...
HARRIS: That's for - Thank you very much. It's been a good Friday. All right, Sanjay. Have a great weekend. Thanks again.
GUPTA: Happy weekend to you.
HARRIS: My man.
WHITFIELD: All right. The troubled economy, also top of the list, a local food bank. So for many middle class families, it's a painful reminder how fair fallen in recent months. One family's story, in the NEWSROOM.
(COMMERCIAL BREAK)
This is CNN, the most trusted name in news. Now back to the CNN NEWSROOM.
TONY HARRIS, CNN ANCHOR: Trying to get this doggone DNA test off the set as quickly as...
FREDRICKA WHITFIELD, CNN ANCHOR: You don't want any association with it, huh?
HARRIS: It's kind of trouble in my life. Welcome back, everyone, to the CNN NEWSROOM for Friday. I'm Tony Harris.
WHITFIELD: And I'm Fredricka Whitfield, in for Heidi Collins. Let's take a look at the numbers shall we. Yesterday after closing down about 120 points, not long ago, maybe just less than a minute ago, right? The markets opened with the Dow up 25 points at 12,327. Looking wow.
HARRIS: Now, look where we are.
WHITFIELD: All right. Well, up 35 points now. And the NASDAQ up 10. So maybe it will be a good Friday, huh?
HARRIS: We hope so following the markets with Susan Lisovicz all morning long right here in the NEWSROOM.
WHITFIELD: We'll be checking with her.
HARRIS: The sputtering economy, it has shattered the comfort and dreams of many middle-class families. For them, the hardships offer a glaring contrast to the lives they led just months ago. CNN's Thelma Gutierrez shares one family's story.
(BEGIN VIDEOTAPE)
UNIDENTIFIED FEMALE: Come on, Rosy.
THELMA GUTIERREZ, CNN CORRESPONDENT (voice-over): A tree-lined street in the foothills of Altadena, California. One of the last places you might expect to find a middle-class family struggling to feed themselves.
UNIDENTIFIED FEMALE: Just a little walk.
GUTIERREZ: But it's where we found homeowner, Patricia Guerrero, a former loan processor, recently laid off from her $70,000 a year job.
PATRICIA GUERRERO, FOOD BANK RECIPIENT: It just happened so fast. It happened in a matter of, what, two, two months.
GUTIERREZ: Less than 90 days is all it took for Guerrero and her husband to lose their middle-class lives.
GUERRERO: We both had good jobs, both very stable, 401ks. Looking forward to the future.
GUTIERREZ: Then her husband left. Now, she's barely hanging on to her home. Her mortgage payments continued to go up.
GUERRERO: My mortgage right now is $2,500.
GUTIERREZ: That's only interest?
GUERRERO: Only interest.
GUTIERREZ: She began drawing unemployment. She rented out her mother's house and her mother, Isabelle, moved in to help her with the mortgage. She says she's lived off a tax refund for a month and that's gone, too.
GUERRERO: The rental and my unemployment are the only thing that cover my mortgage. Other than that, there is no money left.
GUTIERREZ: Zero? GUERRERO: Zero.
GUTIERREZ: No money for food?
GUERRERO: No money for food.
GUTIERREZ: Utilities?
GUERRERO: No. Nothing.
GUTIERREZ: Patricia applied for food stamps but she says because she owns her own home, she was denied. And said she found herself in a middle-class no-man's-land.
GUERRERO: It never used the system. I've been working since I was 15 and a half years old. I needed it now and it turned me down.
GUTIERREZ: She says she had no choice but to turn to her local food bank. She says it was one of the hardest things she has had to do.
GUERRERO: I just remember you take off the Tiffany bracelet and you take off, you know -- you don't take in your coach purse, because it -- it's not worth anything, anyway. It doesn't put a dime in your pocket.
When I walked in there, I was very surprised on how they were and how wonderful this woman was that help and everything. And Edna, and she offered to pay my utility bill that month. Then I was like, wow. And it brought tears to my eyes and I sat there and I cry and I was like, this is really where I'm at?
I go, no way. You know. This is -- this is true. This is reality. This is the stuff you see on TV. You know? And I -- it was hard. It was very hard. But don't get me wrong. I was grateful. I was very grateful.
GUTIERREZ: Patricia Guerrero is eager to go back to work to hang on to her home until the market turns, but for this single mom, every day it becomes harder to hang on.
GUERRERO: It's just depressing for me. I just don't want to get out of bed, but I have to. That's -- that's my hardest thing is I have to.
(END VIDEOTAPE)
HARRIS: A dream purchase turned into a nightmare for so many. Don't miss a CNN special investigations report tonight. CNN teams up with "Fortune" magazine to bring you "Busted: Mortgage Meltdown." That's at 8:00 Eastern only on CNN. And we will preview the CNN special later this morning in the CNN NEWSROOM.
And still ahead, are the candidates concentrating on the housing crisis at the expense of an even bigger money mess? We're searching for answers. WILLIS: All right. Ugly situation weather-wise out there. We talked about flooding and now we're talking about some pretty heavy snow. Right, Reynolds? In the northeast?
(WEATHER REPORT)
WHITFIELD: All right, let's talk presidential politics. Shall we?
HARRIS: Absolutely.
WHITFIELD: The campaign trail runs through several states today. On the Democratic side, Hillary Clinton has stopped in Indiana. She's heading to town hall meeting this morning and ends the day with a rally. Indiana holds its primary May 6th.
Pennsylvania is the next big contest for the Democrats. And Barack Obama, he begin as six-day swing through the state today. He has a stop in Pittsburgh this morning when he picks up an endorsement of Pennsylvania Senator Bob Casey.
And on the Republican side, John McCain attends a fundraising luncheon in Las Vegas. McCain also launches his first TV ad of the general election today.
So Democrats say it's the same old tune from Republican presidential candidate John McCain. They claim his position on Iraq echoes President Bush. Well, CNN's Mary Snow listens in.
(BEGIN VIDEOTAPE)
MARY SNOW, CNN CORRESPONDENT: Two high-profile speeches, two similar world views.
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The surge is doing what it was designed to do. It's helping Iraqis reclaim security and restart political and economic life.
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: Those who argue that our goals in Iraq are unachievable are wrong. Just as they were wrong a year ago when they had declared the war lost, already lost in Iraq.
SNOW: With President Bush's approval rating so low, Democrats are trying to paint McCain as his policy soul mate.
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: All he wants to do is to continue on the George Bush failed policies of the past. And we don't need more Bush.
SNOW: Even some top Republicans are looking for a change in course.
SEN. CHUCK HAGEL (R), NEBRASKA: I think the next four years, the next president is going to have to do things dramatically different than what this administration has been doing. I think to really undermine our interests in the world.
SNOW: McCain agrees with President Bush that the Iraq troop surge is working. That Islamic extremism is a fundamental threat to America and that withdrawing from Iraq will allow militants to flourish. But there are also difference between the two in both style and substance.
MCCAIN: We need to listen. We need to listen to the views and the respect the collective will of our Democratic allies.
MICHAEL O'HANLON, BROOKINGS INSTITUTION: There's no doubt that on the issues of global warming and on the issues of human rights and Guantanamo Bay and other such matters, there is a huge difference between these two.
SNOW: Will those differences help McCain escape Bush's shadow?
After eight years of Republican president, it's going to be difficult for him to convince the American public to elect another Republican for four more years. But it's going to be hard for the Democrats to totally discredit John McCain on the area of Iraq and national security. He does have a reservoir of goodwill and credibility on this subject.
SNOW (on camera): A McCain adviser took direct aim at claims by Democrats that McCain would amount to a third term of the Bush administration. She pointed to differences on the issue of torture and treatment of detainees. But said philosophically they do agree on a broader range of issues as Republicans. Mary Snow, CNN, New York.
(END VIDEOTAPE)
WHITFIELD: Cnnpolitics.com is your source for everything political. From the candidates' movements to the latest delegate count. Get all of that and more at cnnpolitics.com.
Blow out, rubber, flames, foam and a crippled jet in Houston.
(COMMERCIAL BREAK)
HARRIS: You know you never knew her name but you have seen her labor countless times. Bev Broadman helped invent CNN and deliver the news that inform an entire generation of Americans.
WHITFIELD: Our colleague died last night, and it's a lost that extends well beyond these walls. CNN's Chuck Roberts has her story.
(BEGIN VIDEOTAPE)
CHUCK ROBERT, CNN CORRESPONDENT (voice-over): There are some sad news to report from the CNN family. Our dear friend and long time colleague Beverly Broadman has died after a battle with cancer.
Bev, as she was known in the NEWSROOM, was a CNN original. Joining the network in 1980, one month before CNN actually went on the air. She had many important jobs here. She began her career at CNN sports. Later she became a news manager on our domestic assignment desk. And for the past several years as an editor on our news planning desk.
She was always here for the big stories. The 1986 "Challenger" explosion and the day America came under attack, September 11th, 2001, right in the thick of things.
BEV BROADMAN: See what comes out of the news conference.
ROBERT: Bev was always taking care of her field crews and always on the phone. It's how most of us saw her doing her job. A job she loves. And to our benefit, she also loved sharing her passion with young journalists.
BROADMAN: It's teamwork. It's not being a prima donna. Being ready to pick up and do anything from coffee to interviews to editing.
ROBERT: CNN wasn't her first job in national journalism. Bev, first began at CBS News in 1970 and worked her way up fairly quickly to join the staff of the CBS Morning News. She joined CNN after a 10- year career at CBS News. Bev, was far too young, only 60 when she died.
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WHITFIELD: Travel trouble in Texas. A woman with nipple piercing told to take her rings off to get on flight. That story in two minutes.
HARRIS: But first, traumatic touchdown in Texas. A Continental Airlines jet blew out four tires while landing in Houston last night. Here's Vicente Arenas from CNN affiliate KHOU.
(BEGIN VIDEOTAPE)
VICENTE ARENA, KHOU REPORTER (voice-over): If you've ever wondered what goes on inside an airplane just before something like this happens.
UNIDENTIFIED MALE PASSENGER: It was pretty unnerving.
ARENA: Just listen to the passengers of Continental flight 205.
UNIDENTIFIED MALE PASSENGER: It seemed like there was a lot of wind today. We're getting a pretty rough ride in. Plane was dancing from side to side.
ARENA: About 20 minutes before the Boeing 737 landed at Bush Intercontinental, passenger say they were told to buckle up because of turbulence. But the 113 passengers coming from Oklahoma say they had no idea they were in for one of the roughest landings of their lives.
UNIDENTIFIED MALE PASSENGER: The plane kind of crosswind or something. And it came down pretty hard and started bouncing around, everything started falling out of the ceilings.
ARENA: James Lester, an IT guy from Houston, started snapping pictures.
JAMES LESTER, PASSENGER: Actually I was asleep and it wasn't until the plane started rattling that I woke up.
UNIDENTIFIED MALE PASSENGER: Got an initial flop, flop, flop, then you get another flop, flop, flop and then another pretty good size burst.
UNIDENTIFIED MALE PASSENGER: They said, you know, be calm.
ARENA: Did you get scared at any point?
UNIDENTIFIED FEMALE PASSENGER: No.
ARENA: It was only after the passengers got out of the plane that they realized they had narrowly escape disaster.
UNIDENTIFIED MALE PASSENGER: What was unusual that all floor four tires were blown.
ARENA: Two of the fires caught on fire. Pieces of rubber were scattered along the runway.
UNIDENTIFIED MALE PASSENGER: I was glad we're on the ground. Nobody was screaming or anything. It's just they were happy we're on the ground.
(END VIDEOTAPE)
HARRIS: Sure. Despite that rough landing, none of the passengers or crew was hurt.
WHITFIELD: A gunman on the loose at a Georgia Hospital. Three people killed. The suspect now faces murder charges. Authorities say a retired school teacher holding a grudge over his mother's 2004 treatment and consequent death opened fire at a Columbus hospital.
Police say he fatally shot a male nurse, another hospital employee and then killed another man outside. Police say a detective shot the 63-year-old suspect as he tried to leave the parking lot.
To New Jersey now. A rush hour nightmare on the Walt Whitman Bridge. Traffic was stopped for hours last night during a police standoff with a man holding a bat in one hand and a baby in the other. Johnny Reid and his girlfriend had been running from police. Reid finally surrendered. Both are under arrest and undergoing psychological tests this morning. The baby is OK and now in state custody.
HARRIS: How to begin this next story here. Nipple rings in the no fly zone. You heard me correctly here. A Texas woman says she was forced to remove her nipple rings by airport security in Lubbock, after they set off a metal detector. Here's what he look like.
Oh, OK. Mandy Hamelin says male TSA agents refused her request to show the piercings. The nipple rings, to a female officer, insisting that the nipple rings had to come off if she wants to board the plane.
Hamelin says removing them was not easy, Fred. She needed a pair of pliers to get one of the offending nipple rings off. Hamelin wants the TSA to apologize and launch a civil rights investigation.
(BEGIN VIDEO CLIP)
GLORIA ALLRED, HAMILIN'S ATTORNEY: Mandy Hamlin was publicly humiliated. She was made to suffer the physical pain of removing a nipple ring with pliers. A ring that could not be reinserted by her once it was removed while TSA officers stood around snickering at her. Clearly, this is not how passengers should be treated.
(END VIDEO CLIP)
HARRIS: No! It's a delicate procedure. You need hospital care or a doctor's care. Her attorney went on to say, Gloria Allred there, and I quote, "The TSA's conduct was unnecessary. The last time I checked, a nipple was not a dangerous weapon." End quote. Can I keep going with this? How much...
WHITFIELD: You're giving into a lot of detail there.
HARRIS: Yes, OK. The TSA says it is investigating, Fred, but insists this officers are trained to screen people with body piercings with dignity and respect. Whew.
WHITFIELD: I got one word on that one.
HARRIS: What's that?
WHITFIELD: Ouch.
HARRIS: OK.
WHITFIELD: Pliers?
HARRIS: Yes, pliers.
WHITFIELD: Ouch.
HARRIS: Yes.
WHITFIELD: OK. Well, let's talk about something else now. We're going to shift gears considerably.
Are the candidates concentrating on the housing crisis? As the expensive and even bigger money mess. That report coming up next.
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HARRIS: Man's best friend gets ahead. Oh, man. Yes. In trouble here, huh? A golden retriever needs retrieving. That's ahead just before the top of the hour.
WHITFIELD: All right. Well, we've heard plenty from the candidates lately about the housing crisis. But what about other major financial worries that have been hanging around for years, and don't seem to go away? Here's CNN's Allan Chernoff.
(BEGIN VIDEOTAPE)
ALLAN CHERNOFF, CNN CORRESPONDENT (voice-over): By the time one of the presidential candidates becomes the 44th president of the United States, the worst of the housing crisis may have passed. But the funding problems confronting social security and Medicare will still be around in growing on urgency, particularly for Medicare.
SEN. HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: Our real challenge is Medicare, which is much more in crisis and deserves closer attention.
CHERNOFF: The Medicare trustees reported this week that in 2010, less than two years from now, spending on Medicare hospital insurance will exceed the program's income. And by 2019, 11 years away, trust funds will be depleted.
The social security trust fund will be exhausted in 2041, according to the program's board of trustees. Senators McCain, Obama and Clinton say they would avoid politically unpopular benefit cuts. The answer, they say, is controlling heath care spending. The Democratic candidates claim they can save billions by improving efficiency and relying more on high technology.
EUGENE STUERLE, URBAN INSTITUTE: None of the candidates have really proposed solutions for these problems. They've recognized the problems to some extent, but none of them have come close to proposing an adequate or meaningful solution.
CHERNOFF: John McCain supports partial privatization of social security. The plan President Bush proposed but failed to gain congressional approval.
MCCAIN: We don't have time to waste. We don't have eight years. We don't have eight years to fix social security or Medicare.
CHERNOFF: Senators Clinton and Obama are against partial privatization. Clinton proposes new retirement accounts to supplement social security. While Senator Obama says the answer is to increase social security taxes on the wealthy and the super rich, like Warren Buffett.
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: He's paying payroll tax on less than -- on a fraction of one percent of his income. Now, that's -- that is not fair.
CHERNOFF (on camera): The money has to come from somewhere, either raising taxes for millions of Americans, not just the Warren Buffett of the nation, or cutting benefits, but trying to make American swallow that pill is no way to get elected. Allan Chernoff, CNN, New York.
(END VIDEOTAPE) WHITFIELD: Cnnpolitics.com is your source for everything political from the candidates' movement to the latest delegate count. Get all of that and more at cnnpolitics.com.
HARRIS: New attacks in Baghdad. U.S. air strikes in Basra. The battle against Shiite militants widens in Iraq. An update ahead in the NEWSROOM.
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HARRIS: Golden retriever retrieved. The dog named Tracey was on a walk with her owner when she, boy, she walked too far and fell into a frozen lake. Oh, man. The shivering dog's owner called 911. The ice rescue team was deployed. The rescuers grabbed, Tracey, and got her back to dry land. And her grateful owner, they dried her off and warmed her up.
WHITFIELD: Oh, I love that. That's a happy ending.
HARRIS: Here we go.
WHITFIELD: Oh look at that.
HARRIS: They are going to dry her off and warm her up. And look at that.
WHITFIELD: Boy, that's one lucky dog.
HARRIS: Yes, absolutely.
WHITFIELD: Wow!
All right. Well, that's a nice way to begin the news hour. And then end the old hour, begin the new one. Good morning, again, everyone. I'm Fredricka Whitfield in for Heidi Collins.
HARRIS: And I'm Tony Harris. Stay informed in the CNN NEWSROOM. Here's what's on the rundown. Any minute now, Virginia State police will update us on the interstate 64 shootings, a possible arrest, live coverage.
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