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American Morning

North Korea Fires Missiles Overnight; Rising Tensions in Iraq; Home Equity Loans May Be Next Bubble to Burst; U.S. Government Workers in Iraq Advised to Take Cover

Aired March 28, 2008 - 08:00   ET

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


JOHN ROBERTS, CNN ANCHOR: Flash point. North Korea fires missiles overnight. The nuclear stalemate hits a critical level -- it's the economy.
(BEGIN VIDEO CLIP)

SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: There is no dividing line between main street and Wall Street.

(END VIDEO CLIP)

ROBERTS: The candidates' solution.

(BEGIN VIDEO CLIP)

SEN. HILLARY CLINTON (D-NY), PRESIDENTIAL CANDIDATE: We need to get back into gear and move forward together.

(END VIDEO CLIP)

ROBERTS: The man of the treasury speaks out.

(BEGIN VIDEO CLIP)

HENRY PAULSON, U.S TREASURY SECRETARY: We've been doing a lot to reach out to the average homeowner.

(END VIDEO CLIP)

ROBERTS: Plus, Presidents Palmer, McKenzie and Gilliam. Pop culture and a new kind of president. Hollywood's election influence on this AMERICAN MORNING.

Good morning. Welcome back. Thanks for joining us on this Friday, the 28th of March.

I'm John Roberts along with Kiran Chetry.

KIRAN CHETRY, CNN ANCHOR: Yes, glad you're with us today. And we start with breaking news from the White House. Just moments ago reacting to the news of North Korea test firing short-range missiles.

National Security Council spokesman Gordon Johndroe making the U.S. position clear, saying, "This kind of activity is not constructive. North Korea should focus on the denuclearization of the north of the Korean Peninsula and deliver a complete and correct declaration of all of its nuclear weapons program and to complete the agreed disablement."

Well, that continued demand for full disclosure is being called unjust by North Korea. It's saying that's the reason why the nuclear talks have stalled. The State Department says until North Korea comes clean, it will remain on the list of countries that support terrorism. Military officials in South Korea called North Korea's tests of three missiles, "routine."

Meantime, the embarrassing disclosure that the U.S. accidentally shipped missile parts to Taiwan has prompted a full review of all American nuclear weapons and related materials. U.S. Defense Secretary Robert Gates ordered this inventory count after warhead fuses were sent to Taiwan, this was back in 2006, instead of helicopter batteries, as was the intended shipment.

Another dramatic breach of nuclear security happened last August when a B-52 bomber flew across the U.S. mistakenly armed with thermonuclear cruise missiles without the flight crew's knowledge. Secretary Gates says the inventory review should be complete in 60 days.

ROBERTS: Rising tensions and breaking news this morning in Iraq. Coalition warplanes are bombing Shiite Militia positions in the southern city of Basra. It is the first time that coalition forces have been drawn into the battles there since intense fighting broke out four days ago.

In the last hour, we talked with a British military spokesman. He said "Iraqi Prime Minister Nouri al-Maliki is personally leading the military operation in Basra and that multinational forces are providing only air support.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Last night, we released ordinance on two separate occasions on to possibly unidentified militia groupings on the ground. The first one was a building, which was, had a lot of Militia troops inside and on it and around it and the second strike was on an enemy mortar team, which was shelling one of the Iraqi army positions.

(END VIDEO CLIP)

ROBERTS: Meanwhile, U.S. diplomats in Baghdad are being warned to stay under hard cover until further notice after repeated rocket attacks into the green zone. Two U.S. government workers have been killed this week. Iraqi authorities had imposed a city-wide curfew in Baghdad until Sunday.

And Iraq's parliament today convenes a special session to address the security situation throughout Iraq and specifically in Basra. More than 100 Iraqis have been killed in the fighting since Tuesday.

Let's get right to our Barbara Starr at the Pentagon now. Barbara, coalition forces involved in situation in Basra, is there a concern at the Pentagon that this might get out of control?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: That is the concern, John, because it's really right on the cusp now. Do the forces of Prime Minister Nouri al-Maliki get a grip on the situation and really begin to exert control in Basra, or is this fight spinning out of hand? We asked this morning here how much of Basra do the Iraqis actually control right now? And the answer is perhaps most telling.

The U.S. really doesn't have a good answer to that question. There are a lot of estimates out there. When this operation started a few days ago, essentially the Iraqi forces had no control over Basra, and one senior U.S. official described it this morning as -- well, he said, perhaps they now have firm and effective control over maybe less than half the city.

Hard to tell at this point if that's progress. That's really the key question. Are they beginning to expand their control across the city, or is this fighting now going to go on for days, and will coalition forces have to step in further?

ROBERTS: Barbara, there are reports coming out of Iraq today that insurgents are using rockets that are made in Iran. What are the folks at the Pentagon saying about all that?

STARR: This is up in Baghdad, of course. These days after day hammerings of the international zone with rocket fire. The launch points are in Sadr City, that Shiite stronghold. The U.S. has come to the firm conclusion these are Iranian-made rockets -- 107 millimeter. Typically, they are not very accurate, but the concern now is after several days, did appear.

Those who are firing them, have fresh training, possibly from Iran, we are told, because the rocket fire is getting more accurate. They are clearly aiming for the U.S. Embassy inside the green zone. And tragically having some success in that. The question in Sadr City now is, what will the U.S. do to go after those rocket launch points inside that Shiite neighborhood?

They don't want to launch strikes. They don't want to kill civilians and even cause the situation there to be more destabilized.

John?

ROBERTS: Barbara Starr at Pentagon for us this morning. Barbara, thanks -- Kiran.

CHETRY: Well, the Democratic presidential nominee not even locked up yet, but there is a lot of talk this morning about who the potential running mates would be. New York Mayor Michael Bloomberg introduced Senator Barack Obama in New York yesterday, and this is the second time they've appeared together in recent months, and it got some people buzzing. Bloomberg has not endorsed anyone yet, but both he and Obama had nice things to say about each other.

(BEGIN VIDEO CLIP)

MAYOR MICHAEL BLOOMBERG (I), NEW YORK: In this great hall, 148 years ago, a presidential candidate from Illinois gave a speech in the way only he could. He offers a brilliant and beautiful defense of his position on slavery. That man, of course, was Abraham Lincoln. This morning it is my honor to welcome another man from Illinois who is also running for president.

OBAMA: At a time when Washington is divided and old ideological battles he shows us what can be achieved when we bring people together to seek pragmatic solutions.

(END VIDEO CLIP)

CHETRY: On the Republican side, Mitt Romney helped John McCain raise money in Utah and Colorado, and that sparked talks of a possible McCain-Romney ticket.

(BEGIN VIDEO CLIP)

MITT ROMNEY (R), FORMER PRESIDENTIAL CANDIDATE: It's an honor to be here with Senator McCain. He is a man who is proven and tested and an individual who is without question the right person to be the next president of the United States.

SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: We are united as a party. What -- where Governor Romney can play such a key role is that we have to really energize our party.

(END VIDEO CLIP)

CHETRY: McCain picked up $400,000 in that Utah fundraiser.

For the first time, Barack Obama says he would have left his church in Chicago had his controversial former pastor not stepped down. He talked about it with ABC's "The View" in an interview airing today.

(BEGIN VIDEO CLIP)

OBAMA: Had the reverend not retired and had he not acknowledged that what he had said had deeply offended people and were inappropriate and mischaracterized, what I believe is the greatness of this country, for all its flaws, then I wouldn't have felt comfortable staying there at the church.

(END VIDEO CLIP)

CHETRY: Reverend Jeremiah Wright's comments on race and U.S. foreign policy sparking anger. They are widely viewed and circulated on YouTube. Wright has been out of sight since that controversy erupted.

ROBERTS: Eight minutes after the hour now. Howard Dean, the man in charge of the Democratic Party told us in the last hour that he thinks the delegates from Florida and Michigan will eventually be seated.

The latest polls say Democrats are angry over this bitter campaign. In fact, some of them saying that they may defect to vote for John McCain or some of them might just skip the election altogether and not vote.

Our Jessica Yellin is live with the CNN Election Express in Philadelphia. Jessica, let's listen to a little bit about what Howard Dean said this morning. Particularly on this point of just how bitter this campaign is getting.

(BEGIN VIDEO CLIP)

HOWARD DEAN, CHAIRMAN, NATIONAL DEMOCRATIC PARTY: We've got two great candidates. We need to focus on the issues here. We need the supporters to stop taking positions that are unreasonable. We need to stay on the positive road talking about our strengths and the Republican weaknesses.

(END VIDEO CLIP)

ROBERTS: You know, Howard Dean didn't go so far as to say that the party is at risk of implosion, but certainly there are more and more Democrats who are becoming very concerned about what the long- term effects of this are going to be.

JESSICA YELLIN, CNN CONGRESSIONAL CORRESPONDENT: And a growing number, John, you're right, who are speaking out now. Party elders saying that it is time for the candidates to sort of cool it and focus more broadly on the issues, less on this sort of petty bickering that's erupted between the two campaigns.

In addition to Howard Dean has said, as you know, that he thinks that there will be a point in time when this will be settled. Prior to the Democratic convention and he suggested that he's talking to some neutral superdelegates for them to help make that happen.

Also, Senator Dodd, who was running for president, said something similar yesterday, in essence, what all those votes are suggesting is they're going to let this primary play out for a little while longer. Pennsylvania, Indiana, North Carolina.

Let some more states vote. And then, perhaps, a coalition of superdelegates who are currently undecided could come together and say, we as a group have decided to back one candidate over another, and try to put this all, end this primary early, and move ahead as a united party. But of course, they're going to face some fierce resistance if they do that, John.

ROBERTS: Oh yes, absolutely. And as we pointed out and has been pointed out in polls, there will be so many Democratic voters who are angered by that process. The divisions in the Democratic Party this year really are kind of stunning, given the amount of attention and the excitement that has been generated around this historic primary.

What's the state of play there in the state of Pennsylvania now? And we still got more than three weeks to go until that April 22nd primary. Barack Obama picked up a fairly major endorsement. Is that going to help him?

YELLIN: Oh, sure, it will help him. He got Senator Casey from the state endorsing him today. He'll make the announcement in Pittsburgh and then join Obama on what's going to be a bus tour of the state.

And you know Obama is significantly behind in the polls here in Pennsylvania. Clinton is favored to win by a heavy margin. So, Obama needs all the help he can get. And a goal for the Obama campaign really is to sort of narrow the gap with Senator Clinton. There is not a lot of expectation that he could actually overtake her here, but he just doesn't want to get trounced.

And Senator Clinton is in another state, Indiana, focusing today on the economy there. Another state to vote. She wants to be able to move on from Pennsylvania on to another victory and trying to lock that up in Indiana. But she's left her daughter Chelsea here in Pennsylvania today. She is stumping for her mom. And the fight goes on.

I'll tell you, a lot of party leaders also saying, John, they feel like once this primary is done, the Democrats will come together behind their candidate because as much as they might be angry at the other Democratic candidate, they're going to be even angrier at the Republicans come the general election. So, we'll wait and see. That's their hope.

ROBERTS: All right. Jessica Yellin for us this morning in Philadelphia. Jessica, thanks.

CHETRY: Meanwhile, Alina Cho joins us now with other stories new this morning.

Hi, Alina.

ALINA CHO, CNN CORRESPONDENT: Talking about the incumbent, guys, good morning again. Good morning, everybody.

New this morning, the war in Iraq and climate change. Those are just two of the issues President Bush and Australia's new Prime Minister Kevin Rudd will tackle during a meeting in Washington today. This will be Rudd's first meet with the president as prime minister. He was elected back in November after promising to pull one-third of Australia's troops out of Iraq.

Well, he says this year the fight over delegates is proof that the nominating process for president is broken. Now Florida Senator Bill Nelson is laying out a sweeping reform package to fix it. Now, Nelson, whose state of course has seen its share of electoral problems, currently is proposing a new way to elect our candidates. Earlier, we spoke to Nelson about how it would work.

(BEGIN VIDEO CLIP) SEN. BILL NELSON (D), FLORIDA: Let's have a system of rational primaries that start in March and go through June of the presidential year. Let's group up states according to lots, drawing one through six, where you have a combination of small states and big states all on one particular date, and let's do that six times from March to June and then you've got a little bit of -- of order out of the chaos that we have now.

(END VIDEO CLIP)

CHO: Can be confusing. Nelson, who backs Senator Hillary Clinton, also suggests eliminating the Electoral College and electing a president by popular vote. Something other people have suggested as well.

Well, police say a man with a grudge opened fire at a Columbus, Georgia hospital killing three people including a male nurse. Investigators say Charles Johnson was depressed over the recent death of his mother. Police shot Johnson as he tried to leave the hospital's parking lot. Right now, he is still being treated. Police say he will be charged with murder.

And we want to bring you up-to-date on a story we first brought to you earlier this month. The owners of the college gossip message board, juicycampus.com, are calling a lawsuit by the attorney general, quote, "absurd," saying it interferes with the free speech rights of its users.

Of course, a lot of you are familiar with the story. The Web site allows college students to post anonymous gossip about their peers, some of it really angry. The attorney general claims juicycampus may be violating the state's consumer fraud act by allowing offensive material on its site, saying it is banned but then not enforcing that policy. We will keep you posted on that story and all the rest of the day's news throughout the morning.

CHETRY: All right. Good to see you, Alina. Thanks so much.

CHO: You bet.

CHETRY: Well, is there a real possibility that America will soon have either its first minority or first woman president? Well, that's old hat for Hollywood. You may be surprised at who's played the president in movies of the past. Our Lola Ogunnaike takes as look. Coming up.

And, who's your daddy? Well, it's now easier to find out. Accurate home paternity tests and other DNA tests that you can take outside the doctor's office. Are they growing in popularity? Are they reliable? We're going to talk to Dr. Sanjay Gupta about it, ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

CHETRY: Keep it right here for the very latest political coverage from The Best Political Team on Television. Barack Obama and Hillary Clinton out on the campaign trail today, and you can watch their live. Watch our live coverage of their speeches, cnn.com. Just follow the links to the live event.

ROBERTS: Presumptive Republican presidential nominee Senator John McCain is going to be campaigning in Las Vegas today. He was on the trail in Utah yesterday along with former presidential candidate, long-time rival, Mitt Romney. The senator's campaign is getting ready to start a new "Service for America" tour, touting his values to potential voters.

Joining me now from Salt Lake City is senior McCain adviser Steve Schmidt.

Steve, always good to see you. Thanks for being with us this morning.

STEVE SCHMIDT, SENIOR MCCAIN CAMPAIGN ADVISOR: Good morning, John. Pleasure to be with you.

ROBERTS: Of course, the economy and the mortgage crisis were one of the big issues this week that everybody was talking about. Senator McCain had a speech on it, Senator Clinton, Senator Obama. They all had a speech on it. Here's what Senators Obama and Clinton said about John McCain's position.

Let's listen and I'll ask you about that.

(BEGIN VIDEO CLIP)

OBAMA: John McCain recently announced his own plan. And unfortunately, it amounts to little more than watching this crisis unfold.

CLINTON: It seems like if the phone were ringing, he would just let it ring, and ring and ring.

(END VIDEO CLIP)

ROBERTS: Senator Clinton went so far as to liken Senator McCain to Herbert Hoover and Obama said it looked like he was campaigning for a third Bush term. What do you say?

SCHMIDT: Well I think it's a lot of political silliness. There's big differences on the economy between Senator Obama, Senator Clinton and Senator McCain.

For example, Senator Obama yesterday talked a lot about the economy, talked a lot about raising taxes. When you're in a softening and weakening economy like we are now, Senator Obama's plans to raise taxes literally on every working American family is not going to help them make the mortgage payment every month.

What Senator McCain has said is that, it's good and it's right to help homeowners who are having difficulty with their mortgages, but there should be no big government bailout of the speculators and the banks who lent money to people who shouldn't have money lent to them. Because at the end of the day, those big government bailouts, Hillary Clinton's $30 billion slush fund that she's advocating -- at the end of the day, that hurts the taxpayers, and it's the wrong thing to do.

ROBERTS: Senator McCain's speech the other day was -- seemed to me at least to be more a statement of a set of principles as opposed to any kind of a plan. In today's economic climate, are voters not looking for something with a lot more detail than what the senator put out there the other day?

SCHMIDT: Well, in the first week of -- in the second week of April, John, Senator McCain is going to outline his economic vision for the future of the country. He's going to run on policies. He's going to talk very clearly to the American people in plain language about the type of change he wants to leave for America. How he wants to move America forward here in this first decade of the 21st century.

And rest assured as we go forward in this process we're going to have a crystal clear debate between Senator McCain and either Senator Obama or Senator Clinton, whoever emerges from their process.

ROBERTS: Well, I'm sure the people will be looking forward to some more detail.

SCHMIDT: Absolutely.

ROBERTS: He also had a major foreign policy speech earlier this week. We talked with another foreign policy expert from the senate yesterday. Senator Chuck Hagel who told us he's not yet ready to endorse John McCain.

Listen to what he said.

(BEGIN VIDEO CLIP)

SEN. CHUCK HAGEL, NEBRASKA: John and I have some pretty fundamental differences on Iraq, on foreign policy. Some of those he articulated yesterday. I have never believed that the context that Iraq should be looked at from is a win or lose proposition. It's not ours to win or lose. It's the Iraqi people who will make that decision.

(END VIDEO CLIP)

ROBERTS: Steve, would a Hagel endorsement help John McCain with independents and moderates and is there a way that the senator can win over Senator Hagel?

SCHMIDT: Well, Senator Hagel's going to need to make his own determinations in this race. What we do know about the politics of this race right now is Senator McCain is performing very, very well with independent voters. And in fact, he's performing very well with Democratic voters.

When you look, for instance, that 28 percent of Hillary Clinton supporters said that they would support John McCain should Barack Obama become the nominee of the party, when you look at the fact that Senator McCain (OFF-MIC), we are in very good position heading into a general election contest.

This issue of winning this war in Iraq is an important issue. Al Qaeda has made clear that they view ground zero and the fight against us to be Iraq. Senator McCain has said that if you want these troops to come home, if you want to secure the peace for the next generation, then we must win there.

We must prevail in this struggle, or what will happen is, American troop will have to return to a bigger, more costly war in the Middle East. The Democrats have a naive point of view on this.

They refuse to acknowledge the reality, the stated intentions of the enemy of the United States, al Qaeda with regard to this. Senator McCain has talked about Iraq. Its difficult struggle.

But this new strategy, this surge, is working. Iraqi troops are in the lead at this hour in some very tough fighting across Iraq, and Senator McCain is going to talk about the vast differences between his approach towards the national security of the country and either Senator Obama or Senator Clinton's approach on the national security of the country.

ROBERTS: Of course, the big concern in Iraq right now is whether or not this all spins out of control with these attacks on these militias. Let me ask you really quickly, Steve, because we're just about out of time here.

The campaign appearance that we saw yesterday with Senator McCain and Governor Romney, is that an indication of a possible ticket for '08?

SCHMIDT: Well, it's a little early to talk about the vice presidential process. But Governor Romney received millions of votes, in this process, it was great to see Governor Romney yesterday. He's a very important leader in the Republican Party. Senator McCain and Governor Romney enjoyed being with each other yesterday and we were just thrilled to have Governor Romney out on the campaign trail with us.

ROBERTS: All right. Well, we'll see what happens in the future. Steve Schmidt for us from Salt Lake City. Good to see you again, Steve. Thanks very much.

SCHMIDT: Good to see you.

ROBERTS: Kiran?

CHETRY: Well, another helping of bad news in the mortgage meltdown. Why home equity loans may be the next bubble to burst and how you can avoid having this turn into trouble for you. We're going to hear from Gerri Willis about it.

Also, the storms came nearly two weeks ago. Flooding, though, still wracking several neighborhoods in Arkansas, other places as rivers crest to record levels and now there are new worries about destroyed crops. We're going to take you to where this is all happening when AMERICAN MORNING comes right back.

(COMMERCIAL BREAK)

ROBERTS: Twenty-seven minutes after the hour. And remember, "ISSUE #1" at noon Eastern today. Your money, your home, your savings, we're devoting an hour to what's most important to Americans. The economy. That's today. As it has been all this week at noon Eastern.

Well, first it was subprime loans. Now the next shooter drop in the mortgages crisis may be home equity loans. CNN's personal finance editor Gerri Willis joins us now with what you need to know.

Gerri, some people are saying this could be a huge problem that lies ahead?

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Well, that's right, John. You know, interesting that home equity loans are such a problem right now. But you think about the declining home prices, bankers, they don't know how much they're lending on right now. So they were reluctant to even do these deals in many cases. And they are canceling others.

But let's talk about home equity for just a moment here. That basically is your payments towards principle plus appreciation from market gains and home improvements. That's the good stuff. That's what you want to build. This is what you have at the end of the day. If you have a loan on your house right now, you don't own the bricks and mortar, you only owe your equity -- John.

ROBERTS: What can you do to build equity in your home and try to take some of that pressure off, Gerri?

WILLIS: Well, there are a lot of moves you can make. First off, you got to choose the right mortgage. So many people did this badly in the last few years.

Right now, the best deal is probably a 30-year fixed rate mortgage. Refinance that loan if you have a high rate of interest. Interest rates right now are well below 6 percent. That's a very good deal for most folks. You can also refinance a home equity line of credit if you have one and also think about paying down your mortgage earlier.

If you add just one payment each and every year, you really reduce that debt quickly. And of course, if you put down less than 20 percent when you bought your house, you had to pay private mortgage insurance, make sure you get rid of that as you pay your loan down.

Lenders aren't real good at reminding people that they have PMI. They just keep collecting those payments. So it's up to you to tell your lender that you don't want to pay it anymore -- John.

ROBERTS: All right. Gerri is an expert on this, because she talks all about it in her new book, "Home Rich," which you might want to pick up. And Gerri, we will see you at noon today for "ISSUE #1." Thanks.

WILLIS: That's right. Thank you.

ROBERTS: Kiran?

CHETRY: Well, drug stores across the country are starting to sell home paternity tests. How accurate are the results? And the results from other DNA tests that you can take at home? Well, we asked our chief medical correspondent Dr. Sanjay Gupta to look into this for us.

So these over-the-counter paternity tests, what do you say about the accuracy?

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Well, it's pretty amazing first of all that we have over-the-counter genetic tests. I mean, here we are in 2008, actually buying these things over the counter.

As far as the accuracy goes, it's a little bit hard to know. The FDA doesn't regulate these over-the-counter kits. There was not exact information, although we've been doing in some investigating, as you said, Kiran.

And it turns out with a kit like this, for example, Identigene, which by the way you can buy over-the-counter now. My producer actually bought two of yesterday. She got some funny looks for that. But two of these paternity test -- and they say that if you have the mother's DNA, the father's DNA and the child's DNA, it had about a 99.9 percent chance of being able to tell for sure whether or not the father is in fact the father.

If you just have the father's and the child's DNA, at about 90- plus percent. So still pretty good.

The way it works (INAUDIBLE) Kiran, you just basically take some cotton swabs and you rub the inside of a mouth, and you put it in the whole dish and you send that in. Now, I had the test done as well. I can't point out -- this isn't the paternity test that I was having done. My wife and I pretty comfortable with that. But we -- I was actually having this done because you can look for lots of other diseases as well.

And again you just rub it inside your mouth like that, you send it in. Within a few days you get some results back. I did this test for a piece I'm doing for AMERICAN MORNING, and I'm going to share that with -- some of the results and how -- how accurate they were when I get the results back, Kiran.

CHETRY: All right. So this is interesting, though, for the paternity one. These are also not allowed as evidence in court, which I guess is often why, in these custody cases, that people want to verify paternity?

GUPTA: Yes, well, you know, I'm not a lawyer, but I'll tell you that a lot of forensic agencies do use very similar tests to this. I think the inadmissibility in court has more to do with sort of this idea of chain of evidence.

You have to have someone observe you doing it. Are you sure that the samples that are, in fact, submitted are the samples of a specific individual or not? As far as accuracy goes, though, they're pretty good.

With regards to the test that actually tests for certain diseases, though, there are some caveats. And I've been thinking a lot about this, Kiran, as you know. And I think there's a few tips which you need to keep in mind if you're going to do one of these tests.

For example, tip No. 1, a positive result does not mean you're going to get the disease. Very important.

Also, you know, part of the reason is genes are only a part of the puzzle. Obviously, environmental factors are part of that puzzle, as well. And it won't tell the severity of the disease. You may have a very mild form of it.

So be careful with these. I mean, I think it's fascinating that you can buy genetic tests over the counter, but they do come with some caveats as well, Kiran.

CHETRY: Yes, absolutely. You get that information and then exactly what you're going to do with it, still up in the air, I guess, to discuss with your doctor, as well. But fascinating, no doubt.

GUPTA: Yes.

CHETRY: Sanjay, thanks.

GUPTA: All right. Thanks, Kiran.

ROBERTS: Thirty-two minutes after the hour now, and breaking news to tell you about out of Iraq.

The daughter of a Sunni vice president says his office was hit in a rocket attack on the Green Zone. That is according to the Associated Press. Two guards were reportedly killed and four others injured in the shelling.

Meanwhile, coalition warplanes launched at least two air strikes overnight against Shiite militia position in the southern city of Basra. It is the first time coalition forces had been drawn into that battle in Basra since intense fighting broke out four days ago.

A British military spokesman told us in the last hour that Iraqi Prime Minister Nuri al-Maliki is personally leading the military operation in Basra and that multinational forces are only providing air support.

U.S. diplomats in Baghdad are being warned to stay under hard cover until further notice after repeated rocket and mortar attacks targeting the Green Zone. Two U.S. government workers have been killed this week. CNN State Department correspondent Zain Verjee is in Washington. She's got more.

How dire is the situation there, Zain?

ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT: Well, John, it's a difficult situation. The State Department putting out this advisory. They do it from time to time, but it happens when incoming fire is heavy. We're going to bring you more on that after this short break.

(BEGIN VIDEOTAPE))

VERJEE (voice-over): Insurgent firepower steps up. The target: the U.S. embassy in Baghdad.

SEAN MCCORMACK, STATE DEPARTMENT SPOKESMAN: We've seen rocket attacks on March 23, March 25, March 26 and March 27.

VERJEE: Those attacks in the international zone, U.S. Officials say, are becoming more sophisticated, more accurate. The State Department is instructing all embassy employees to stay and sleep in hardened structures, buildings like Saddam Hussein's old palace, or the new U.S. embassy compound.

In an advisory to U.S. employee, the State Department says, "Personnel should only move outside of hard cover for essential reasons, and essential outdoor movements should be sharply limited."

If U.S. employees are outside, they must wear protective body armor, like flak jackets and helmets.

(END VIDEOTAPE)

VERJEE: The State Department says how long the advisory will stay in place depends on the volume of incoming fire over the next few days -- John.

ROBERTS: Of course, Zain, we know that they're working in the embassy, and they're spending an awful lot of time in there. And there are bunkers in the embassy. But when they're not at work, when they're out in their bivouacs sleeping, what are the accommodations like? What's the protection like there?

VERJEE: Well, I just spoke to someone who used to live and work there. And what this person told me, John, was that actually within the embassy compound there are several different residential areas. They're not clustered together, and all of them are about a five- minute walk from Saddam Hussein's old palace that's now operating as the embassy.

This person said that several thousand people are living in trailers, and they have the option of sleeping either inside these buildings or getting cots and sleeping in their offices. This person also added that not everybody does that. What happens is people just go around doing business as usual, but all activities, all social events, are shut down at the time -- John.

ROBERTS: We should -- we should also point out that there are an awful lot of American troops who are living in those exact same trailers on bases and an awful lot of American troops, as well, who are living in tents, and they are under constant threat of rocket mortar attack, as well.

Zain Verjee for us at the State Department this morning. Zain, thanks very much -- Kiran.

CHETRY: Well, more flooding in Arkansas today that could have a disastrous effect on this season's wheat crop. The White River is cresting, and that could hit the 100-year flood mark.

Experts say that grain under water for more than a week will not survive. The real estimate of the damage can't happen until waters recede which could take days. Nearly half the state -- half the state -- has been declared a disaster area.

Been a tough winter/spring combo here, Reynolds. We've been getting a lot of bad weather in many parts of the country as the seasons get ready to shift over. And the last thing we need is to see problems with wheat prices and with these grain crops.

REYNOLDS WOLF, AMS METEOROLOGIST: No question about it. You're absolutely right about that.

We have some good news in Arkansas. And that is that we're expecting that precipitation to be long gone. However, those floodwaters, as you mentioned, are going to continue to rise.

(WEATHER REPORT)

ROBERTS: All right. Thanks very much. Appreciate it, Reynolds.

Life imitates art. America may elect a woman or a minority president this year, but Hollywood has had presidential diversity for decades. We'll have a surprising look at who has already been president on the screen, coming up on AMERICAN MORNING.

(COMMERCIAL BREAK)

CHETRY: Welcome back to AMERICAN MORNING. Right now here in the U.S. there are nearly a million households that are at risk of foreclosure, 71 percent more than just a year ago, and unfortunately it's likely to get worse.

So how did we get into this mess, and how do we get out? Our next guest is part of a CNN investigation unit episode that's airing tonight. He's also the managing editor of "Fortune" magazine and certainly no stranger to AMERICAN MORNING, Andy Serwer.

Good to see you this morning.

ANDY SERWER, "FORTUNE" MAGAZINE: Kiran, nice to see you.

CHETRY: So the first question is how did we get into this mess?

SERWER: Well, you know, it's kind of a perfect calm, the opposite of a perfect storm. The economy was kicking into gear; interest rates were low; there was money sloshing around in the system; and a lot of people wanted to buy homes.

Mortgage companies and banks were deregulated. They were anxious to provide mortgages to consumers.

Meanwhile, Wall Street was looking to buy these loans, these mortgages, and package them into exotic securities that they sold to investors, like hedge funds and pension funds. More and more demand for these mortgages. And so the mortgage companies and the banks were more and more eager to lend to individuals and homeowners who weren't necessarily able to pay for these mortgages. Then interest rates turned, and the whole thing went splat.

CHETRY: All right. And then this is probably the harder question, because you guys are doing an entire investigation on it. How do you begin to find a way out of this?

SERWER: Well, you know, we need some relief. And the candidates are beginning to talk about it. I think all three of them finally. They have differences of opinion.

Obviously John McCain, a little bit more of a free market approach. Let things sort themselves out.

Hillary Clinton and Barack Obama are looking at more of a bailout strategy in terms of providing some relief to homeowners in terms of these subprime loans. And I think you're definitely going to need to do that. You are going to need to provide some mechanisms, some cash for people who were taken to the cleaners, often by predatory lenders. So the government's going have to step up.

Now, unfortunately, that means the average taxpayer is going to have to pay the bill. Because what is the government's money? It's your money. So we're all going to be feeling the pain, Kiran.

CHETRY: It's difficult. Because there are people who say, "Wait a minute. I struggle every month to pay my own mortgage, and now the federal government's going to bail out people who maybe took a loan they shouldn't have?"

How do you sort out who really needs it and who maybe made a wrong choice and shouldn't be bailed out?

SERWER: Well, there's a tremendous amount of work right there. And you're right. You have to sort through it on a case-by-case basis. I mean, some people didn't know what they were signing. You know, when you're signing papers to buy a home, there's just a huge stack of paper.

On the other hand, some people have responsibility. In fact, everyone has some responsibility when they're buying a home. And those people who knew exactly what they were doing should not necessarily be bailed out.

But when you're talking about bailouts, you're also talking about bailing out Wall Street firms, and big banks, investment banks and mortgage companies.

And I think the government has to be a lot more careful there, bailing out Wall Street titans and fat cats, because these are people who were eyes wide open, got themselves into a big mess, and let's shed tears. They've gone from having a billion dollars of net worth to $30 million. I'm sorry. You know, we don't bail you out. That's where we should stand on that one.

CHETRY: All right. Let's talk about your special report tonight. You did get a chance to sit down with former Fed chairman Alan Greenspan, and he said that this crisis was inevitable.

Let's listen.

(BEGIN VIDEO CLIP)

ALAN GREENSPAN, FORMER FEDERAL RESERVE CHAIRMAN: You get to a state of extraordinary exuberance, which when confronted with reality, turns to unrelenting fear.

(END VIDEO CLIP)

CHETRY: Is he trying to pass the buck?

SERWER: I think he is a little bit. I mean, here's what happened. Basically, he was trying to help out the economy after the stock market bubble in 2000. The economy went into the tank. So he cut interest rates, trying to get the economy back up on its feet.

Now, what happened is, he created essentially another bubble in the housing market. Not directly, but indirectly, perhaps.

I think that he owes the country -- he should say that he is a bit responsible for that. I think that's probably the best way to put it. Maybe not directly. You know, a lot of people are Monday morning quarterbacking with him, saying he created the whole thing. He was telling everyone to get adjustable rate mortgages.

In fact, he said in some cases they're appropriate. But people misread that and said, "Wow, everyone should get an adjustable rate mortgage" and went to town, and that was a bad, bad thing.

CHETRY: All right. We're certainly paying the price right now, but hopefully, the corner is turning. And so we're going to find out more as we watch your special. Thanks so much for being with us, Andy.

SERWER: Thanks, Kiran.

CHETRY: And be sure to catch Andy Serwer as well as the rest of the CNN special investigations unit tonight for "Busted: Mortgage Meltdown." CNN teams up with "Fortune" magazine, taking a look at how the housing boom went bust and the solution for getting out of it. That's tonight, 8 p.m. Eastern right here on CNN -- John.

ROBERTS: Coming up in 15 minutes to the top of the hour, it's CNN NEWSROOM, just minutes away now. Fredricka Whitfield at the CNN Center with a look at what's ahead.

FREDRICKA WHITFIELD, CNN ANCHOR: John, Iraq on the "NEWSROOM" rundown. Coalition forces joined the fight in Basra, dropping bombs on Shiite militants today, the spreading violence prompting a curfew in Baghdad.

Virginia police search for two people who may have opened fire on a rural interstate. Police update the case live this morning.

And now, you can be absolutely sure, and it's easy. The first over-the-counter paternity test hits drug stores.

Also personal finance editor Gerri Willis answers your e-mail in the "NEWSROOM." Top of the hour on CNN -- John.

ROBERTS: Fredricka, we will see you soon. Thanks very much.

Building fitness into your workday. It helped one woman get on the road to good health. Our Dr. Sanjay Gupta will be along with a "Fit Nation" success story, coming right up on AMERICAN MORNING.

(COMMERCIAL BREAK)

CHETRY: We have some breaking news right now out of Baghdad that we are sorting out for you. These are some pictures now from the Green Zone. The Associated Press is reporting that what was hit was the Sunni vice president's office inside of the Green Zone. That also being reported by AFP, as well, that the office of Vice President Tariq al-Hashemi was hit by mortar rounds.

The daughter of the vice president saying two guards were killed and four others wounded. Our Baghdad bureau also working to confirm the information that has been coming out.

But this is new video that they are bringing to us, the Green Zone. Also home, of course, to the U.S. Embassy and most of Iraq's government. It's been under constant mortar attack since Easter. In fact, two Americans killed in those attacks earlier and others seriously injured.

We'll continue to follow the latest as we get new details from Baghdad.

ROBERTS: It's 11 minutes now to the top of the hour. This morning, we are "Uncovering America," a look at the faces and stories of our changing nation.

For the first time in history, the United States has a good chance of electing its first female or its first African-American president.

Our Lola Ogunnaike found some early examples of how Hollywood might have been ahead of the times.

(BEGIN VIDEOTAPE)

POLLY BERGEN, ACTRESS: I do solemnly swear...

LOLA OGUNNAIKE, CNN CORRESPONDENT (voice-over): Polly Bergen played one of Hollywood's first female presidents in the 1964 film, "Kisses for My President."

What could have been a triumph for women was more about the president's man.

BERGEN: It isn't very feminine.

FRED MACMURRAY, ACTOR: Maybe you -- maybe you should appeal to Congress for some chintz curtains.

LEAH ROZEN, FILM CRITIC, "PEOPLE" MAGAZINE: It was, you know, this can never happen. Look how ridiculous it is to have a woman president. But really the film focused on Fred MacMurray as her, you know, what do I do as the first man?

OGUNNAIKE: Geena Davis won a Golden Globe playing President Mackenzie Allen in the series "Commander in Chief," but in 2006 television viewers voted the show off the air after only 19 episodes.

GEENA DAVIS, ACTRESS: Mr. Speaker, I would very much like an invitation to address a joint session of Congress tomorrow night.

UNIDENTIFIED MALE: Before the funeral?

DAVIS: Before the markets open. We want to convince the world there's no crisis of leadership.

(MUSIC)

OGUNNAIKE: Sammy Davis Jr. was barely out of knickers when he played one of Hollywood's first black presidents in the 1933 film "Rufus Jones for President." The film was presented as satire and was filled with stereotypes common at the time.

Rufus's idea of change: pork chops and chicken for the masses. Hard to believe today, but in 1933, many white Americans probably found that funny.

PROFESSOR DONALD BOGLE, AFRICANA STUDIES, UNIVERSITY OF PENNSYLVANIA: "Rufus Jones for President" is telling us that, if a black man comes to power, one, it will be a child-like figure and that nothing is really going to get done in the country. Nothing of substance.

OGUNNAIKE (on-camera): Now let's fast-forward a few decades. And you have comedians like Dave Chappelle and Chris Rock playing with the idea of a black president again, but this time they're just completely mining it for laughs.

UNIDENTIFIED MALE: We'd like you to run for president.

CHRIS ROCK, COMEDIAN: Of what?

UNIDENTIFIED MALE: The United States.

ROCK: Of what?

OGUNNAIKE (voice-over): By the time the action serious "24" arrived, the president's race had become a non-issue, at least for Hollywood. In fact, President David Palmer's color is rarely addressed.

DENNIS HAYSBERT, ACTOR: The most patriotic thing we can all do today is to keep living our lives.

BOGLE: He's ready to govern. He really is. I mean, he's on top of things. He's quite intelligent, and we can believe in him.

OGUNNAIKE: "24" may be ahead of its time, but gender and race are inescapable in the current campaign.

CLINTON: I am not running because I'm a woman. I'm running because I think I'm the best qualified and experienced person to hit the ground running!

OBAMA: Some commentators have deemed me either too black or not black enough.

OGUNNAIKE: Critics say if either of them end up in the White House, Hollywood won't be able to take credit.

ROZEN: Well, you're looking at the influences of why people vote. Two percent to TV, 98 percent for who the candidates are and what they actually stand for.

(END VIDEOTAPE)

ROBERTS: And Lola is with us in the studio.

Now, President -- President David Palmer, David [SIC] Haysbert, I would vote just for the voice, just for the voice alone. But I mean, was Hollywood really ahead of the curve here?

OGUNNAIKE: Well, they were ahead in casting, if you will, but the portrayal of some of them are a little sketchy. I mean, Sammy Davis Jr.'s character, not the best portrayal of a black president.

It really wasn't until the '90s that you had more impressive black presidents and more impressive women presidents. Morgan Freeman in "Deep Impact," of course, you remember that. But he didn't become president until asteroids were about to hit the earth. A calamity always had to ensue before the black man could be president.

Jon Stewart had a great joke about that at the Oscars. At the Oscars, he essentially said that it isn't until the Statue of Liberty is about to be destroyed that a woman or a black man gets to be president. So, yes.

ROBERTS: Maybe in some, way, shape or another, it could be life imitating art, imitating life this year.

OGUNNAIKE: Exactly.

ROBERTS: So we'll see what happens.

OGUNNAIKE: It could be, actually.

ROBERTS: Lola, great piece. Thanks.

OGUNNAIKE: Thank you.

ROBERTS: Kiran.

CHETRY: Well, here's a quick look at what "CNN NEWSROOM" is working on for the top of the hour.

(BEGIN VIDEO CLIP)

TONY HARRIS, CNN ANCHOR (voice-over): See these stories in the "CNN NEWSROOM."

Baghdad under curfew. Iraq extends a deadline for militants in Basra to turn in their weapons.

The Pentagon suspends its main arms supplier for Afghanistan. The company, run by a 22-year-old.

Barack Obama launched a six-day bus tour of Pennsylvania.

Hillary Clinton campaigning in Indiana today.

And nipple rings set off alarms for airport security.

"NEWSROOM," just minutes away at the top of the hour on CNN.

(END VIDEO CLIP)

CHETRY: Well, your job might have a bigger impact on your weight than you think. In this week's "Fit Nation" report, Dr. Sanjay Gupta introduces us to a woman who says that a simple change at the office changed her life.

Sanjay joins us now from Atlanta.

Another remarkable story. Lois says she lost weight just by moving to a new office?

GUPTA: Yes. It may sound too good to be true, Kiran. But one of the themes here is we're not asking people to change the world. We're asking them to make some small changes, which we think can have big effects later on.

That was the case of Lois -- a small change having a huge impact. Take a look.

(BEGIN VIDEOTAPE)

GUPTA (voice-over): Skyrocketing gas prices and exorbitant parking fees weigh on the minds of countless commuters. That forced Lois Fletcher to find a solution that saved money while providing an added benefit. Take the train downtown, and walk to her office.

LOIS FLETCHER, WEIGHT LOSS SUCCESS: I hadn't been on a train for 30 years and I thought, well, let's give it a try.

GUPTA: She soon started shedding pounds. Lots of them.

FLETCHER: At first I started to see changes in the way my clothes fit. And then when I got on the scale, I found that I had indeed lost weight.

GUPTA: Lois dropped 40 pounds and no longer needed to take blood pressure medication. She also says she's less stressed out.

FLETCHER: I have diabetes and I had hypertension. My doctor has been encouraging me to exercise for quite some time, and I never seem to be able to fit it into my schedule. And I notice that now I don't have to fit it in. It's a part of my daily commute.

GUPTA: A small change that paid huge dividends.

FLETCHER: Feel better. Now I can see how I can drop the rest of the weight.

(END VIDEOTAPE)

GUPTA: Park farther away from your office. You could actually visit somebody instead of sending them an e-mail. Small changes here, Kiran. We're going to keep on this theme, trying to empower people to try and lose some weight.

CHETRY: Sounds good. I mean, it's true. You don't think about it, and then the effects certainly adds up, just walking up those stairs you saw, when she was getting out of the subway, can make a big difference.

GUPTA: Absolutely.

CHETRY: Sanjay, thanks so much.

GUPTA: All right, Kiran.

CHETRY: And also, you can watch Sanjay this weekend on his own show, "House Call," airing Saturday and Sunday, 8:30 Eastern right here on CNN.

ROBERTS: So you know we've been talking all morning about what should happen in the future, because of the fact that this primary season, according to many, many Democrats, has not been exactly what they were hoping for. Some people on one side saying, hey, it's been a tremendously exciting primary season, which it has. Record numbers of Democrats have been coming out.

But now, there's this increasing division in the party, where people are saying, "Well, if my candidate doesn't -- doesn't become the nominee, I'm going to go vote for John McCain or I'm going to stay home." So now people are proposing different solutions for this. At least if not this year, going forward.

CHETRY: That's right. And then just the notion that, why isn't it that, you know, one vote counts and the person who gets the most votes wins? As we saw, that doesn't always happen.

And so we asked that about our "Quick Vote" today, because one senator in particular is pushing for this notion and saying, "Let's do away with the Electoral College." Senator Bill Nelson. And we talked to him earlier in the show.

And we asked our viewers, should the Electoral College be scrapped and presidents elected by a nationwide popular vote? Overwhelming. This is a "Quick Vote" that -- more yeses than we've seen in a long time.

ROBERTS: Look at that.

CHETRY: Eighty-nine percent saying yes, 11 percent saying no. Maybe we should ask tomorrow, but is it realistic? Will it ever happen? We might see a switch in those numbers.

ROBERTS: Well, there are a lot of people who have been saying that the Electoral College is an old way of doing things, and of course, based on the 2000 election, where the person who won the popular vote did not become president. A lot of people have been lobbying for this for a long time.

We asked for your e-mails on this questions this morning, as well. Let's take a look at some of what we got in.

Vicki from Columbus, Indiana, says, "Oh, my gosh, yes, and scream it from the highest mountain, yes! I personally think that many voters have a 'why bother when my vote doesn't count' attitude."

CHETRY: Martha in Hollywood says, "In an ideal world, the people could elect their leaders. The truth is that only a handful of powerful states and only a small percentage of voters within those states actually elect our president. The rest are just going along for the ride, like it or lump it."

ROBERTS: And an interesting suggestion from Mike in Olympia, Washington, who says, "Oregon has voted by mail for years and years. Florida should also vote by mail. We wouldn't have the problems with the voting machine reliabilities or possible discrepancies. The mail vote leaves a paper trail, and all states should adopt it."

Of course, what he's missing there is that it's against the law in Florida, for those votes to be certified by the state. So you can't have a mail-in vote in Florida, at least at this point.

To all of you who voted, or wrote in, thanks very much. And we'll do it all again next week.

CHETRY: That's right. For all of you who joined us this week, thanks a lot, as well. We'll see you back here bright and early Monday morning.

ROBERTS: You can bet we'll be here, with bells on.

"CNN NEWSROOM" with Tony Harris and Fredricka Whitfield begins now.

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