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American Morning
Bernanke to Speak Regarding Feds Plans to Fix Crisis; Stocks Surge; Obama Gets Another Endorsement; Mystery of Autism: No One Treatment for All; High School Drop Out Rate Rising
Aired April 02, 2008 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KIRAN CHETRY, CNN ANCHOR: A lot of gains made in how best to deal with it early and how it can really affect the outcome of how the child develops, so very fascinating. We are on that today as well.
But we're also talking about "Your Money." Thanks so much for being with us on this AMERICAN MORNING. In fact, a lot of news to talk about. Developments today impacting issue number one, the economy. Federal government taking some drastic steps to clean up the housing and credit crisis, also hoping that a financial rescue could help.
Federal Reserve Chairman Ben Bernanke is going to be testifying before Congress in just about 3 1/2 hours. The Fed chairman has supported holding Wall Street firms accountable for the loans that they financed and has encouraged banks to write down the value of certain mortgages to help borrowers avoid foreclosure. Also, for first time, he'll publicly answer questions about the Bear Stearns debacle last month and the government's controversial intervention.
Bernanke met privately with House Republicans yesterday. They said that he refused to say the economy is in a recession. Bernanke speaks just as the opening bell will ring on Wall Street, and that could be a good thing. Investors seem to be showing new confidence at the worst of the credit crisis could be behind us.
Asian stocks rallied overnight. Tokyo's Nikkei up four percent. European trading up as well. All of that following a nearly 400-point gain in the Dow yesterday. Dow futures run slightly off right now, but, of course, that could change throughout the morning.
Still the triple whammy of tight credit. The housing slump and sky high gas prices are weighing down on the minds of many. Car sales down for all five major automakers. U.S. companies also reporting double-digit losses in March compared to a year ago.
Americans not buying the gas-guzzling SUVs or pickup trucks. Actually, going for smaller cars, hybrids and crossovers. Crossovers look like SUVs but are built like cars instead of trucks.
Well, the new quarter kicks off with a bang on Wall Street. The Dow as we said jumping almost 400 points. Gerri Willis joins us now with more on that. Whether it's a one day thing or not, I think there is a lot of excitement that there is finally some good news to talk about. GERRI WILLIS, PERSONAL FINANCE EDITOR: That's right. You just said it. The Dow up 391 points, almost 400 points, 3.2 percent. The rest of the indexes rallied as well. And what's going on here is the stocks moving on news of European banks taking big write-offs, as much as $24 billion.
In the losses on the credit markets, the thought here, hey, maybe the credit crunch is over. Maybe the economy has room to rally here. I guess we'll have to wait and see.
It's an interesting story, though, guys, because you saw what happened in the global markets as well. You know, the rallies that went on overnight. Big moves here in Japan, Hong Kong, Australia. As you can see, it's not being reflected, though, this morning in our markets, unfortunately. The futures not looking as happy certainly as they did yesterday.
CHETRY: But it will be interesting to see what happens today and tomorrow as the government takes up some of these big issues like the credit crisis trying to push through some legislation to help with foreclosure. I'm sure you will be all over that as well.
WILLIS: Exactly. And if you're wondering whether the markets have a right (ph) about the economy, probably not. We don't know yet. We're still in the dark about whether the economy is going to go into recession or not. Still waiting to find out.
Housing is still suffering quite a bit. Even if the banks are able to clear up their problems with their bottom lines in the next few quarters, there are still a lot of problems for Americans right now with high cost and problems with their mortgages.
JOHN ROBERTS, CNN ANCHOR: At least some people seeing reason to be optimistic which is a nice change. Gerri Willis, thanks.
"Most Politics in the Morning" right now. And a big endorsement overnight for Senator Barack Obama's foreign policy credentials. Former Indiana Congressman Lee Hamilton will announce that he is backing Obama today. Indiana holds its primary on May the 6th; 84 delegates at stake there. Hamilton co-chaired both the 9/11 Commission and the Iraq Study Group. He told "Bloomberg News" that he was impressed by Obama's approach to national security and foreign policy, so he has decided to back him.
And Senator Hillary Clinton is announcing a new plan today to keep jobs here in America. Clinton is proposing $7 billion in yearly tax incentives if companies promise not to send jobs overseas. At a campaign appearance in Pittsburgh, she will also suggest eliminating tax breaks for companies that outsource jobs.
"Your Money" is on the minds of both candidates as they campaign through Pennsylvania today. CNN's Dan Lothian live in Philadelphia for us this morning with the CNN Election Express. Very early and still dark there, but good morning to you, Dan.
DAN LOTHIAN, CNN CORRESPONDENT: Good morning, John. Well, indeed, you know, that endorsement, that will be a key endorsement for Senator Barack Obama. This is an area that Senator Clinton has really tried to exploit pointing out that she does have the experience. And for Barack Obama, as you pointed out, certainly this will help in terms of national security as foreign policy credentials. That will no doubt capture a lot of the news today, the news cycle today, but there will be also a lot of focus on the economy.
As you also mentioned, Senator Clinton will be focusing particularly on her economic plan, job creation, providing those incentives for companies that do not send their jobs overseas. So in essence, creating more jobs for Americans here at home. Both of these candidates are really pushing hard here in the state of Pennsylvania to reach out to those undecided voters with about three weeks to go before the Pennsylvania primary.
(BEGIN VIDEO CLIP)
SEN. HILLARY CLINTON (D-NY), PRESIDENTIAL CANDIDATE: I know that the people of Pennsylvania are ready to come to events like this, study what we talk about, look at our records, and have a chance to make your voices heard and your votes counted. I'm so proud to be campaigning for president in Pennsylvania, a state that I love.
SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: I am here to report that my bet has paid off. My faith in the American people has been vindicated because everywhere we go people are standing up and saying we're ready for something new, we're ready to turn the page. We're ready to write a new chapter in American history.
(END VIDEO CLIP)
LOTHIAN: Senator Clinton still leads Barack Obama here in Pennsylvania in the polls by double digits. But Senator Obama leads here in the television ad wars. He has outspent her three to one here. Essentially, he's trying again with his TV ads to eat into her lead and also perhaps cause her to spend money here in this state which will weaken the amount of money that she can spend in some of the other contests -- John.
ROBERTS: Dan, there are some surveys that suggest that Barack Obama is beginning to close the gap there in Pennsylvania. Is his campaign confident that maybe she's not going to have the run away victory there that it looked like she was going to have a couple of weeks ago?
LOTHIAN: Well, no one is predicting exactly what the numbers will be at the end of the day. But certainly, they are hoping to do well. And that's the reason they pumped a lot of money here into the state. Again, they're looking at those undecided voters, roughly 10 percent or so of undecided voters here in Pennsylvania. That's what they are really going after. They really want to do well.
If you talk to the political analysts, they're saying he probably cannot pull out a win here but he has to have a strong showing. So that is certainly what they'll be focusing on.
ROBERTS: All right. Dan Lothian for us this morning in Philadelphia. Dan, thanks very much -- Kiran.
CHETRY: So we take a look now at our current delegate estimate. Barack Obama still leading Hillary Clinton by 140 delegates. He has 1,626. Hillary Clinton has 1,486, but Clinton still leads Barack Obama by 31 superdelegates. Hundreds of superdelegates still remain undecided.
DNC Chairman Howard Dean coming under some fire for being -- supposedly not doing enough to bring a peaceful end to what many are calling a divisive campaign. He addressed that last night at CNN's ELECTION CENTER.
(BEGIN VIDEO CLIP)
HOWARD DEAN, DNC CHAIRMAN: And I have to chuckle a little bit. The people who are complaining that I'm not taking a stronger role when you drill down on that a little as I have what they called me is I see what you mean is, you'd like me to be a strong leader and adopt your point of view and then ram it through the DNC. I'm not going to do that for either side. There are going to be donors and supporters on both sides that are mad at me. I'm going to play this one by the rules.
(END VIDEO CLIP)
CHETRY: Dean is expected to meet with Democrats from Florida today to talk about finding a way to seat Florida's delegates at the national convention.
ROBERTS: Presumptive GOP nominee John McCain will be campaigning in Maryland and Florida today. But last night, he made a stop in New York City and exchanged insults with David Letterman. Letterman started by taking some shots at McCain's age. McCain fired back.
(BEGIN VIDEO CLIP)
DAVID LETTERMAN, HOST, "THE LATE SHOW WITH DAVID LETTERMAN: He looks like a guy who's always got wiry hair growing out of new places. He looks like the guy who points out the spots they missed at the car wash.
SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: You think that stuff is pretty funny, don't you?
LETTERMAN: Well --
MCCAIN: Well, you look like a guy whose laptop would be seized by the authorities.
LETTERMAN: What?
(APPLAUSE)
MCCAIN: You look like a guy caught smuggling reptiles in his pants.
(END VIDEO CLIP)
ROBERTS: So there you go. John McCain's sense of humor on display last night on "The Late Show with David Letterman."
Some breaking news this morning. CNN is confirming that Irish Prime Minister Bertie Ahearn will step down on May the 6th from a position that he has held for the past 11 years. His resignation will follow a previously planned trip to the United States.
He's been at the center of a cash payment scandal, and his hold on power there in Ireland has been steadily weakening since the investigators alleged that he received some cash payments from developers back in the 1990s. They have documented $150,000 of deposits to accounts that Ahearn has that have not been accounted for. So again, Bertie Ahearn, prime minister of Ireland, stepping down on May the 6th.
Alina Cho here now with other stories new this morning. Good morning to you, Alina.
ALINA CHO, CNN CORRESPONDENT: Hey, good morning, guys. Good morning, everybody.
New this morning, fast moving developments at the NATO summit in Romania. Overnight, President Bush called on NATO to increase troop levels in Afghanistan. And within the hour, the NATO secretary general said that request is likely to be approved. President Bush insists more troops are critical to winning the war on terror.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: As President Sarkozy put it in London last week, we cannot afford to lose Afghanistan. Whatever the cost, however difficult a victory, we cannot afford it, we must win. I agree completely.
To ensure that we do win, France is sending additional forces to Afghanistan. The United States is deploying an additional 3,500 marines. Romania is adding forces, as are several other allies. We ask other NATO nations to step forward with additional forces as well. If we do not defeat the terrorists in Afghanistan, we will face them on our own soil.
(END VIDEO CLIP)
CHO: President Bush is also taking a hard line against Russia on this trip, calling on NATO to offer membership to two former Soviet republics, Georgia and Ukraine. Russia is opposed to that. He's also trying to build consensus on a missile defense shield in eastern Europe.
Back in this country, a devastating four-alarm fire overnight in Manchester, New Hampshire, to tell you about. Firefighters do have it under control now. But about 100 people are now homeless and some barely escaped the flames. Crews say the wood frame buildings were built back in the late 1800s and had no sprinkler systems. That may have helped fuel the fire.
Two students in Georgia are under arrest this morning for allegedly plotting to attack their teacher, and here is the unbelievable part about it. The kids are third graders. Police say as many as nine kids, ages 8 to 10, may have been involved. They allegedly brought a broken steak knife, handcuffs and duct tape to the school. Apparently, intending to knock out their teacher with a paperweight, handcuff her, and then stab her.
School officials were tipped off to the plot by another student. Apparently, it all started when the teacher scolded a student for standing on a chair.
A passenger arrested at Orlando International Airport is due in federal court today. The FBI says Kevin Brown, a Jamaican national was carrying materials in his luggage that could have been used for an explosive device. Airport security officials say they observed Brown acting strangely. As he got ready to board a flight to Jamaica, they found pipes, end caps, BBs, batteries and unknown liguid and bomb- making literature in his luggage (AUDIO GLITCH).
(AUDIO GLITCH) buried in Washington State recently is not the one used by the infamous hijacker D.B. Cooper. That chute was found, and it was made of silk. Cooper's apparently was made of nylon. Cooper hijacked a passenger jet back in November of 1971, bailed out somewhere over the pacific northwest. He has never been found.
And everybody freeze. That's what happened in Beijing and Brussels and other cities around the world as hundreds of people gathered to stop whatever they were doing. You see them in the crowd there. We've seen this before in New York.
The so-called flash mobs, as they're called, gather on busy streets. They stand still, frozen in time for a couple of minutes, and freak people out. This happened, of course, you guys, back -- couple of months ago or a month ago or so at Grand Central Station. Remember that? And it was just a sensation on YouTube. But can you imagine walking on that street and seeing that. Not quite knowing what's going on.
ROBERTS: Yes, it caused quite a sensation, as you said at Great Central.
CHO: Yes.
ROBERTS: What we need to do is we need to play a little bit more of that video this morning, because the really interesting part of this exercise is people's reaction...
CHO: Oh, yes.
ROBERTS: ... that are caught on camera on this whole thing.
CHO: That's a great one.
CHETRY: The only way you'll get someone's attention in Grand Central is to stop.
CHO: That's right.
CHETRY: Anything else can be going on and no one's noticing. They're rushing to the train.
CHO: Mile in a minute. You're right.
CHETRY: You stop the crowd. Boy, then you got their attention.
CHO: That's right.
CHETRY: Thanks, Alina.
CHO: You bet.
CHETRY: Well, some troubling news about the future. More than a million dropouts a year. Why so many kids are quitting school. There is a troubling study out, but is there hope on the horizon? Are these schools in the cities around the country making changes? We're also going to talk a little bit more about why where you live makes a huge impact on whether or not you'll graduate.
Coming up on AMERICAN MORNING, the mystery of autism.
Two boys with two very different stories.
(BEGIN VIDEO CLIP)
HARRY SLATKIN, SON HAS AUTISM: It's hard because you have to grapple with the fact I do have a normal daughter. But I will never have a normal son.
(END VIDEO CLIP)
CHETRY: Heartbreak and hope. Alina Cho with a special follow-up report.
(BEGIN VIDEO CLIP)
ALINA CHO, CNN CORRESPONDENT: When you think about David as a grown man, what is your great hope for him?
LAURA SLATKIN, SON HAS AUTISM: That he's happy. We just want to see him smile.
(END VIDEO CLIP)
CHETRY: Two families, worlds apart. Ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
ROBERTS: Seventeen minutes after the hour now. CNN is devoting this day to try to understand autism. The United Nations has designated this as Autism Awareness Day. An estimated 35 million people around the world have the condition. In the United States alone, doctors say that a child is born with autism every 20 minutes, and it strikes each child differently.
Our Alina Cho here is here now with a story of two families and how their children respond. Good morning.
CHO: Good morning, John. Two adorable little boys, two wonderful families really, and so candid about their feelings. You know, two years ago the two autistic boys you are about to meet were basically in the same boat. Today they are worlds apart.
Both are still undergoing intensive therapy, but only one of them is responding well to it. The other is not, and there's no explanation for it. It's one of the mysteries of autism.
(BEGIN VIDEOTAPE)
CHO (voice-over): 8-year-old David Slatkin is autistic. So is 11-year-old Ari Lainer (ph). But while Ari can play the piano, shoot baskets, ride a bike, type, even speak, David has never uttered a word. And despite years of intensive therapy, he's not getting better. Nobody knows why.
HARRY SLATKIN, SON HAS AUTISM: The window of hope is getting smaller for us. And that's a hard thing.
CHO: We first introduced you to the Slatkins nearly two years ago. Back then, David, who is severely autistic, was well enough to go to the park with his twin sister Ali. His parents say they tried everything. More than two dozen medications, along with round-the- clock care, but David is not responding. And today, he's so aggressive his family is scared to let him leave the house to play.
ALI SLATKIN, BROTHER HAS AUTISM: He is getting much bigger and stronger, so it's getting to be harder to take care of him.
CHO: The Slatkins are now considering what was once unimaginable -- sending David away to this in-patient facility near Boston that specializes in children with autism.
H. SLATKIN: It's hard because you have to grapple with the fact I do have a normal daughter. But I will never have a normal son.
CHO: The Slatkins say they'll try to make that agonizing decision soon. Ari is exceeding his parents' and doctor's expectations. And with good therapy and some luck, they hope their son might be able to make his own bed, do the laundry and go out to eat.
ILENE LAINER, SON HAS AUTISM: My big hope is that one day there will be somebody who will love Ari, who isn't related to him, and who we don't pay.
CHO (on camera): When you think about David as a grown man, what is your great hope for him?
LAURA SLATKIN, SON HAS AUTISM: That he's happy. All we care about is happiness. We just want to see him smile. I love you.
(END VIDEOTAPE)
CHO: And both sets of parents want that happiness for all of their children. Laura and Harry Slatkin, David's parents, have worked tirelessly over the years to raise money for autism research. They have raised millions of dollars. They even opened a school for autistic children in New York City. And when I asked Laura how they are able to do all of it with everything else going on in their lives, John, she said it takes away the pain.
ROBERTS: Is there any way to explain how and why these children respond differently to these therapies?
CHO: I mean, the short answer is no really. I mean, you are talking about two boys who were diagnosed essentially at the same time. Ari, who is responding well at 23 months, David at 17 months. Both had essentially the same therapy, but they responded differently. One went this way, the other went that way.
And there's no explanation. It's really one of the great mysteries of autism as I mentioned. If you think about autism as really being a short circuit of the brain, each child is wired differently. For some reason, David's wiring, if you will, is off a bit and cognitively, he's not processing information. Add to that all of the aggression. And that's why the family sadly is considering the possibility of sending him away.
ROBERTS: So incredibly frustrating for these people.
CHO: And so very sad.
ROBERTS: And as we've seen and we will learn today as well, economically devastating.
CHO: That's right. It certainly is.
ROBERTS: Alina Cho for us this morning. Great story, Alina. Thanks very much.
CHO: You bet.
ROBERTS: And today, the wall of silence around autism will fall. CNN networks worldwide expose the myths, the facts and hope about autism. "Autism, Unraveling the Mystery," a CNN worldwide investigation, all day today only on CNN -- Kiran.
CHETRY: And still ahead, it's one of the most important steps in a person's life. And a new report says more than a million students will never make that step. Why so many kids in America's biggest cities are not graduating from high school and what it could cost all of us in the future.
Thousands of airline passengers at risk every day. That's the claim from a top lawmaker who says the FAA is too lazy when it comes to enforcing safety inspections. The FAA answers back ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
CHETRY: There is a new report out this week that reveals some very startling and disappointing numbers. About 1.2 million American high school students drop out every year. Even more troubling, there is a big divide, a big difference between graduation rates in major cities and then the graduation rates of the surrounding suburbs.
The report comes from America's Promise Alliance, a group founded by Retired General Colin Powell. And according to education statistics, it's not just a class issue. It can be an economic one, of course. High school dropouts from last year's graduating class will end up costing the U.S. more than $329 billion in lost wages, taxes and productivity over their lifetime.
Joining us now from CNN's Washington bureau is Marguerite Kondracke. She's the president and CEO of America's Promise Alliance. Marguerite, thanks for being with us this morning.
MARGUERITE KONDRACKE, PRES., AMERICA'S PROMISE ALLIANCE: Thanks, Kiran. Great to be with you.
CHETRY: You know, it's -- unfortunately, it is not under the best circumstances. We're talking about this situation that seems to be having a devastating impact, especially on the inner cities. You take a look at your report and students in the largest 50 cities have about a 50/50 shot of graduating high school. Any answer as to why?
KONDRACKE: Well, I do think that it's an issue we all need to pay attention to. If 7,000 children went missing on a given day, it would be 24/7 news coverage. And that's exactly what's happening. Seven thousand young people are dropping out of high school every single day. Lost to who knows what kind of a future.
So when we look at the stark difference between the big cities and the suburbs, I do think one of the issues is too many of these young people need support that many of us take for granted. They need caring adults in their lives. They need after-school care. They need tutoring. They need health care. And that's part of the equation I think that we have to pay attention to.
In addition, the schoolroom itself, the curriculum, needs to be more rigorous, more relevant. I think a high school diploma is the bare minimum in today's society. We're watching the economic news to be the number one domestic issue, and it's only going to get worse if we can't train the future workforce.
CHETRY: Yes. Let's take a look at some of the other numbers. You say, on average, an average of 58 percent of students in cities graduate compared with 75 percent in nearby suburbs. And when you break it down, for example, at least according to your statistics in New York City, which includes the five boroughs, 47 percent graduate compared to 83 percent in the suburbs.
And you take a look in Columbus, Ohio -- 41 percent graduate in the city versus 83 percent in the suburbs. And in Baltimore, again, only 35 percent of high school students in the city of Baltimore are graduating. Then you look at the nearby suburbs and again, in the 80s. What is this gap between suburban and urban?
KONDRACKE: Well, I think it has to be the lack of engagement, the lack of appreciation for the importance of school. And that lesson is learned very early in a young person's life. A dropout happens or starts to happen far sooner than senior high. In fact, half the dropouts happen in the ninth grade.
So there are early warning signals that we need to pay more attention to. The entire community needs to hold this up as a higher value, and we need to be engaged together to solve this problem. It's a complex problem and our entire future as a nation, our economic security, even our national security, I think, is at risk if our young people are not better educated.
CHETRY: Is this something that's trending upward or trending downward? I ask this because when I look at the New York statistics, I just thought wow, that's -- it seems so low that only 40 percent, 47 percent of the city of New York City are actually graduating compared to the suburbs.
Michael Bloomberg, the mayor of New York, is saying that actually they've seen a 14 percent increase since 2004. He's saying that it's actually up to 60 percent and that they're making gains. Are you seeing that parallel with other cities nationwide, or do you see this trending downward?
KONDRACKE: I think what we see is that it's unacceptable, whether it's trending up or down. Even the so-called better statistics in the suburbs still see 20 to 25 percent of our young people not even finishing high school. And so what I think we need to do is shoot for 100 percent, celebrate gains and learn from those gains wherever we can.
Mayor Bloomberg and Chancellor Joel Klein are a wonderful example. The mayor and the city school system are totally aligned. The business community, when they care, when they kick in, when the entire community embraces this as the highest priority, you do see gains. And we should settle for nothing less than 100 percent.
CHETRY: All right. So there are glimmers of hope here. Also the Minneapolis School District officials are disputing their low ranking. They say it was based on Department of Education data that was before the No Child Left Behind standards were in effect. Do you dispute that? And also, is No Child Left Behind in your opinion helping this?
KONDRACKE: The most important thing is to shine the light on the data and to hold ourselves accountable for 100 percent graduation. I like "No Child Left Behind" because it does focus on accountability. And yesterday, Secretary Spelling announced that she will use her bully pulpit, her administrative authority, to ask the states to hold to one way of calculating the dropout rate. And that will help us get past some of the confusion in the statistics. CHETRY: OK, all right. Well, before I leave you, I just want to ask you once again, is this -- are we trending better, are we seeing these graduation rates rise as a whole or fall?
KONDRACKE: Well, I would say the most important thing is to shoot for 100 percent.
CHETRY: Yes.
KONDRACKE: And we will be hosting...
CHETRY: But are we trending up or are we falling backward in this?
KONDRACKE: I think it is worse in some areas and better in some areas and it all depends on leadership and the alignment of the entire community. And we will be hosting summits in every state and in the major cities to invite total engagement by the community.
CHETRY: Marguerite Kondracke, president and CEO of America's Promise Alliance. Thanks for being with us this morning.
KONDRACKE: Thank you.
CHETRY: You know, you can also learn more about this newest report and how to get involved. It's americaspromise.org. That's the Web site.
JOHN ROBERTS, CNN ANCHOR: You're watching the most news in the morning. A reversal for Wal-Mart and a big fight in a way against a brain damaged former employee.
And a top lawmaker is blasting the Federal Aviation Administration saying that it is too lazy when it comes to making sure the planes are safe. Find out why when AMERICAN MORNING comes right back.
(COMMERCIAL BREAK)
CHETRY: Shot this morning of the Statue of Liberty, as we take a look at New York City at 6:34 a.m. It's sunny and clear. 42 degrees right now. Shaping up to be a high of 55 degrees. Maybe spring is in the air after all.
ROBERTS: Maybe. And we should point out, too, that on this April 2nd, the big boss here at CNN, John Klein is waking up, 50 years old today. Happy birthday to him.
CHETRY: Happy birthday.
ROBERTS: There you go.
CHETRY: Hey, according to Sanjay Gupta, you got 50 more years at least.
ROBERTS: Hey, it's the new 30. Come on. CHETRY: That's right.
ROBERTS: Today, the Federal Aviation Administration will announce the results of a new round of airline safety inspections as it prepares to defend itself on Capitol Hill.
Congressman James Oberstar says the FAA is putting hundreds of thousands of fliers in danger with lazy enforcement of inspections. The issue came to light last month when a congressional investigation revealed that Southwest Airlines flew hundreds of flights without performing required safety inspections.
Two whistle blowers who provided records to Congress will testify when hearings begin tomorrow. Oberstar, chairman of the House Transportation Committee says the FAA's relationship with the airlines is too cozy.
(BEGIN VIDEO CLIP)
REP. JAMES OBERSTAR (D), MINNESOTA: Ultimately, 117 aircraft a year ago were allowed to fly with full knowledge of the FAA until Southwest could schedule those aircraft or inspections without disrupting their commercial schedule. That's unacceptable. That is putting the flying public at risk.
(END VIDEO CLIP)
ROBERTS: The FAA will announce the new inspection results at 2:00 p.m. this afternoon.
A man who the FBI says was attempting to board a flight with bomb making materials in his luggage is due in Federal Court today. It happened at Orlando's International Airport.
The FBI says Kevin Brown was acting suspiciously as he attempted to board a flight to Jamaica. CNN Susan Candiotti is live in our Miami Bureau this morning with the latest on this.
Good morning, Susan.
SUSAN CANDIOTTI, CNN CORRESPONDENT: Good morning, John. You know, there are reports out there that this man had mental health issues. I talked to the FBI about it. but they will not confirm it. It is certainly an odd case.
This man who had been, according to the FBI, living on the streets lately, checks in at the ticket counter, checks in his luggage, but something just was not right. And TSA employees who have been trained to look for strange behavior pulled the guy aside and looked into his luggage and here is what they found.
Two pipes, end caps, some BBs, batteries, two containers filled with so far unidentified liquid, bomb making literature, and a laptop. Now at one point, they brought this guy outside and they spread everything outside on the sidewalk so everyone could get a look at it. Airport operations did not get back to normal before several hours. And about a dozen flights or so were delayed.
(BEGIN VIDEO CLIP)
LEE KAIR, TSA, FEDERAL SECURITY DIRECTOR: I can't say that there was no immediate threat to anyone in the terminal. There was no imminent threat to any person or anyone.
(END VIDEO CLIP)
CANDIOTTI: So all we know about this man so far is his name, Kevin Brown. 32 years old. A Jamaican national. Living in the United States legally with a green card.
He was booked on this flight to Jamaica. The FBI says he had been living in several different U.S. cities. And with relatives at one point. TSA detection employees get credit for using their behavioral techniques to spot this man. He is charged with carrying explosives on to an aircraft and he is scheduled to appear in court later today.
John?
ROBERTS: Susan, charged with carrying explosives on to an aircraft or at least attempting to. But no indication that these components were actually assembled into an explosive device?
CANDIOTTI: That's right. And that's why they were not as concerned as they certainly might have been. They were all in pieces. They were in checked luggage. It was not in carry-on luggage. And that's why they are saying that no one was in any immediate danger.
ROBERTS: All right. We expect to hear more on this investigation as the day progresses. Susan Candiotti for us this morning in Miami.
Susan, thanks.
CANDIOTTI: You're welcome.
ROBERTS: Kiran?
CHETRY: We have some breaking news this morning out of Ireland. Irish Prime Minister Bertie Ahern will be stepping down, May 6th, amid a money scandal. It's a position that he has held for the past 11 years almost. He helped broker peace in Northern Ireland but could not survive this scandal over a collection of money from businessmen.
He -- his resignation follows a previously planned trip to the United States. He has been under some growing pressure to explain a number of cash payments that he received from developers dating back to the early 1990s. And he did release a statement.
He said, I want everyone to understand one truth above all else. Never in all the time I served in public life have I ever put my interests ahead of the public good. But again, making the decision to step down, May 6th, after nearly 11 years in office. Also new this morning. Fast moving developments at the NATO Summit in Romania. Overnight, President Bush called on NATO to increase troop levels in Afghanistan. And within the hour, the NATO Secretary General said that request will likely be approved.
There are about 47,000 NATO forces in Afghanistan. Some countries are reluctant to send more. Canada has said it will send 2,500 soldiers if NATO does not come up with at least 1,000 troops to help them in Kandahar.
Also, British troops won't be pulling out of Iraq just yet. Britain's defense minister putting withdrawals on hold because of the increased violence in Basra. Britain moved 5,000 troops outside of the city of Basra back in September. They were planning to cut the force in half again this spring. But this past week, the British were called back in to help Iraqi forces fight Shiites Militia.
We also have an update now on a story we have been following on CNN. It's the number one story right now on cnn.com. At the most popular list. Wal-Mart has given up trying to get back money for the medical care of a former employee, Debbie Shank.
She suffered a severe brain injury in a car accident. She and her husband sued the trucking company and won more than $400,000 after legal fees. Wal-Mart then sued to get that money back. Saying that as part of the health care, if any type of settlement is made that they can recoup money they paid for an employee's health care. Shank's husband tells CNN he is relieved it is all over.
(BEGIN VIDEO CLIP)
JIM SHANK, HUSBAND OF DEBBIE SHANK: They did the right thing. I just wish it hadn't taken so long. Just should have dropped from the beginning. But I thank them. And I hope they come through with all that they have said they're going to do.
(END VIDEO CLIP)
CHETRY: Wal-Mart's health care plan does let it get back expenses if an employee collects damages in a lawsuit. May want to check your company's health insurance plan. A lot of them do have this same provision.
ROBERTS: It's 41 minutes after the hour. A group of third graders caught allegedly planning to attack their teacher. We will tell you how the authorities say they planned to carry out this attack. And talk about what kind of punishment they could be facing. That's just ahead on AMERICAN MORNING.
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ROBERTS: 44 minutes after the hour. President Bush in Romania right now. He is holding a joint news conference with Romanian President Traian Basescu at the president's Black Sea Resort. Let's take a moment to listen in.
(BEGIN VIDEO CLIP)
GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Might go forward because of a success of your economy and your entrepreneurs. And I want to congratulate you on your rate of growth and on your vision. And all in all, Mr. President, I am really glad I came. And I thank you (INAUDIBLE) for your hospitality. I appreciate the really good lunch. The American press hasn't eaten Romanian ice cream, I strongly suggest you try it. Thank you very much, sir.
TRAIAN BASESCU, PRESIDENT OF ROMANIA: Thank you very much, Mr. President.
(END VIDEO CLIP)
ROBERTS: So President Bush there with the Romanian President Traian Basescu. After meetings earlier today, reporters likely to ask President Bush about a hard-hitting speech that he made earlier today as well. In which he called on NATO members to raise their troop levels in Afghanistan and offer membership to former soviet republics Georgia and Ukraine.
Some members are concerned that accepting those countries would anger Russia by putting NATO virtually on the president's front doorstep there. So we will hear more about this throughout the day. But meantime, we expect to hear more from the press conference in just a little while.
Kiran?
CHETRY: Did you know the beaches were so beautiful there?
ROBERTS: Very nice. That's why they all have those dashes on the Black Sea.
CHETRY: Very nice. Well, turning to politics now. A key enforcement for Democrat Barack Obama. It's coming out today and he's picking up the backing of former Indiana Congressman Lee Hamilton.
Now, Hamilton was the co-chair of the 9/11 Commission and the Iraq Study Group. He tells Bloomberg News he is impressed by Obama's approach to foreign policy. Indiana's primary is May 6th. And there are 84 delegates at stake for the Democrats.
Well, chairman of the Democratic National Committee, Howard Dean dismissing criticism that he is not doing enough to bring peace to the increasingly bitter nomination fight.
Dean told CNN's Election Center one side will always be upset and he's just going to keep playing by the rules. So we want to know what you think. This morning's "Quick Vote" question.
Do you think Howard Dean is strong enough -- is he taking a strong enough position right now to try to bring some peace to the Democrats? Yes or no. Cast your vote, cnn.com/am.
Well, a tally of the votes a little later in the hour. You can also e-mail us your thoughts. Go to the same Web site, cnn.com/am. And follow the e-mail link. Let us know what you think. We will read them throughout the morning.
ROBERTS: John McCain will be campaigning in Maryland this morning, speaking at the Naval Academy in Annapolis from which he graduated. There are signs this morning that he is still battling to unite the party.
James Dobson, founder of Focus on the Family, writes in this morning's "Wall Street Journal," that he thinks McCain is driving conservatives away. Dobson cited McCain's support for stem cell research and his opposition to a constitutional amendment banning same-sex marriage.
A strong candidate is ruling out a run for the White House. Larry King asked Jesse "The Body" Ventura about speculation that he might join the race. The former pro-wrestler and ex-governor of Minnesota said no, not going to do it. He said there were too many hurdles for an independent to get on the ballot. He also refused to support a major candidate.
(BEGIN VIDEO CLIP)
LARRY KING, HOST, LARRY KING LIVE: You're going to have to vote for one of the candidates.
JESSE VENTURA, FORMER GOVERNOR OF MINNESOTA: No, I'm not. I never vote for a Democrats or Republican. I will pick someone else. There will be a libertarian on the ballot. There will be someone else on the ballot. I will not vote for a Republican or a Democrat and I don't do it every election.
(END VIDEO CLIP)
ROBERTS: Ventura also dismissed speculation that he would run for the Senate in Minnesota. That contest pits Republican senator Norman Coleman against Al Franken of "Saturday Night Live" Fame.
You know, I tell you, if you have President Ventura, nobody would mess with us. Right?
CHETRY: No, exactly. We would be on the clear on one front.
Well, here's an incredible story. You know, a lot of us were reading it twice when we first heard about it yesterday. A group of nine third graders caught in an alleged plot to attack their teacher.
According to the police, the group brought a steak knife to school as well as handcuffs, duct tape. Here's the hall. And other items to school. The police say the students were planning to knock the teacher unconscious with paperweights, then handcuff her and stab her.
In fact, they say the plan was so detailed that students were allegedly given jobs, assigning one student to cover the windows and another to clean up after the attack. It never happened. One student tipped off school authorities. Two of the students, though, had been arrested. A third could be charged.
All of this started apparently because the teacher reprimanded a student for standing on a chair. Joining us now on AMERICAN MORNING's legal analyst, Sunny Hostin.
Again, when we talk about these elaborate plans, at least according to police, you have to think again -- third graders?
SUNNY HOSTIN, CNN LEGAL ANALYST: Unbelievable. And nine of them were involved. And we are also talking about boys and girls involved in here. Ages 8 to 10. It really -- it is interesting. And as you mentioned, two have been arrested. A third is likely to be charged. What charges are they facing, Kiran, they are facing conspiracy to commit aggravated assault, bringing weapons to school and those that have been charged have been two girls, apparently.
One that brought the knife that was going to be used to stab the teacher, one that brought the paperweight that was going to be used to knock her out. And then finally, the third that maybe charge as a boy, that brought the duct tape to tape her mouth. It was just an unbelievable, unbelievable story.
CHETRY: What ages are we talking about -- 8, 9, 10?
HOSTIN: 8, 9 and 10.
CHETRY: And in Georgia, and in many states, you can't -- kids under 13 can't face criminal charges. So where would they be?
HOSTIN: Well, criminal adult charges, certainly. I mean, they have been charged juvenile. And really juvenile crime is meant to be treated, rehabilitated. We are really not trying to punish these children. But I have to say, this was an elaborate plan.
What I think the people will take into consideration, judges and prosecutors in this case, these were kids that were learning disabled. And so in parsing out this case, they are going to have to try to figure out whether kids thought this was a fantasy or whether or not they really had the intent and the capability to hurt this teacher.
CHETRY: Right. Some of them being treated for attention deficit, hyperactivity as well as some other learning issues and behavioral issues. As you said, they are going to take that into consideration. But I mean, the parents have to get lawyers. I mean, all of this, this is a serious...
HOSTIN: This is serious. Absolutely. The parents have to lawyer up here. The kids are going to be facing these charges. We know they have been arrested. A third is going to be arrested. They're going to be talking to all the kids and try to figure out what happened here. This is a very serious issue.
CHETRY: Well, good thing, number one, that another student tipped off the school.
HOSTIN: Absolutely. CHETRY: They've also been suspended.
HOSTIN: That's right. None of them are in school right now and good thing.
CHETRY: Yes. Keep us posted on this one. Thanks, Sunny.
HOSTIN: Thanks.
ROBERTS: A strike that could cripple the struggling economy. Some truckers putting it in park in rage over fuel prices. What they want to keep America moving. That's straight ahead.
(COMMERCIAL BREAK)
CHETRY: Well, if you're on the Jersey turnpike, this may not look all that weird. There was a traffic jam, though. It was staged on purpose to protest sky-high diesel prices by the truckers.
Are you seeing it? OK. This is video of a lot of the independent truckers that decided to park their trucks for the day, their rigs. Yes, that certainly is.
But then also, in addition to that, on some parts of the New Jersey turnpike, they were riding about 20 miles per hour, clogging up, rolling roadblock. They were getting ticketed by some police for doing that.
But all of it was an effort to try to draw attention to the price of the sky-high price of diesel and also as we heard yesterday from Ali, that they are not getting any kickbacks from the fuel surcharges.
So, when we pay a fuel surcharge, it does not go to the truckers who are actually paying for the higher price of gas. So, they want to bring attention to that situation. They say they're at the point now where they can't even make a living. So, they put the brakes on deliveries across the country yesterday.
ROBERTS: It is the truckers who were out there yesterday protesting the high price of diesel. Big Oil was on Capitol Hill getting hammered in a congressional hearing over the fact that they are making record profits and still demanding that they get all these tax breaks.
Our Gerri Willis in this morning for Ali Velshi's "Minding Your Business."
Good morning.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Good morning. Good to see you.
Well, let's go over some of those numbers that you just mentioned. You said tax subsidies and also profits. How much? Well, $18 billion in tax subsidies for the oil industry every year and $123 billion in profits last year. That's a whole lot of dough. They were grilled by Congress yesterday. Here's what John Lowe, the Executive Vice President of ConocoPhillips had to say.
(BEGIN VIDEO CLIP)
JOHN LOWE, EXECUTIVE VICE PRESIDENT, CONOCOPHILLIPS: The U.S. is engaged in a global race. Other countries are working cooperatively with their energy industries to secure new supplies. Unless our domestic companies are allowed to compete on level ground, we run the risk of marginalizing U.S. oil and gas industry and ultimately undermining U.S. energy supply.
(END VIDEO CLIP)
WILLIS: OK. So, the oil industry here saying that the tax breaks encourage domestic oil production, which is what we need to cut our dependence on foreign oil. But they were taken to task by people like the chairman of the committee, Representative Ed Markey.
(BEGIN VIDEO CLIP)
REP. ED MARKEY (D) MASSACHUSETTS: For too long, this administration's energy policy has led to tax breaks for big oil and tough breaks for American families. American consumers shouldn't have to break the bank to fill the tank.
(END VIDEO CLIP)
WILLIS: All right. So, the Democrats say oil companies deliberately keep the oil supply tight. And of course, as we know, oil is over $100 a barrel right now and we are feeling the pain at the pump, John. A lot of this, though, I think you got to think that at the end of the day, a lot of politics going on. But it's not expected to really change policy any time soon.
ROBERTS: Yes. Anytime it's easy to beat up on the oil companies as well. Where as the price of oil really is dictated by the market, these brokers, who feel that they can get as much as they possibly can.
WILLIS: That's right.
ROBERTS: Even with these windfall profits that they're getting, how likely is it that these tax breaks would be rolled back or repealed altogether?
WILLIS: I don't think that you are going to see any change in tax policy any time soon. I think it would be a big surprise if they made a big change in it. Well, we have to wait and see. Lots of complaining and you know, people out there, taxpayers out there, you know, they're listening to this with a sympathetic ear. I'm sure.
ROBERTS: Gerri Willis for us this morning. Gerri, thanks. We'll see you again soon.
WILLIS: Thank you.
ROBERTS: A top lawmaker is holding a hearing into what he calls lazy enforcement of aircraft inspections by the Federal Aviation Administration. Are passengers in danger? We'll look into that, the next hour of AMERICAN MORNING.
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