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American Morning

John McCain Rejects Pastor Hagee's Endorsement; Obama Begins Hunt for VP; Are Oil and Fuel Prices Causing a Ripple Effect on the Economy?; Texas Polygamist Children in Limbo

Aired May 23, 2008 - 06:00   ET

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


JOHN ROBERTS, CNN ANCHOR: People talking about the idea that these two got to get their campaign together, get the union support behind them, get that fund-raising machine going if they want to have a real chance in the fall. So --
KYRA PHILLIPS, CNN ANCHOR: That's right. We'll talk about apparently a reporter breaking the news that she's planning her exit strategy. Is it true or not? We're going to talk about it.

ROBERTS: That's right. "Time" magazine's Karen Tumulty coming up in just a little while.

We do begin this morning with the most politics, and John McCain cutting ties with prominent but controversial evangelical minister, John Hagee. McCain's move comes after some recordings of Pastor Hagee made the rounds on YouTube preaching about God, Hitler, and the Holocaust.

(BEGIN VIDEO CLIP)

JOHN HAGEE, TELEVANGELIST: Behold I will send for many fishers and after will I send for many hunters. And they, the hunters, shall hunt them. That would be the Jews.

Then God sent a hunter. A hunter is someone who comes with a gun and he forces you. Hitler was a hunter.

(END VIDEO CLIP)

ROBERTS: McCain actively pursued Hagee's endorsement prior to the Texas presidential primary to help him with religious conservatives, but he rejected it last night after the pastor once argued that the Nazis operated on God's behalf.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: Well, I just think that the statement is crazy and unacceptable and certainly Reverend Hagee, Pastor Hagee is entitled to his views. But we've reached the point where that kind of statement simply I would -- I would reject the endorsement and the expression of those kinds of views.

(END VIDEO CLIP) ROBERTS: Hagee says his comments are being grossly distorted, and he is withdrawing his endorsement of McCain. John McCain also publicly rejected the support of right wing preacher, Rod Parsley, of Ohio, after Parsley called Islam an anti-Christ religion that intends to conquer the world through violence. Parsley later said his comments were directed at militant Islamic leaders.

McCain will release his medical records today to a small group of reporters in Arizona, including our own Dr. Sanjay Gupta. There are a lot of rules, however, only three hours to sift through hundreds of pages of information.

They can take notes but make no copies. They cannot have access to the Internet, and cell phones are not allowed in the room. McCain will be 72 years old in August, and if elected, the oldest president ever to stand for election on the first term.

Dr. Sanjay Gupta joins us next hour with a preview of what we can expect to see -- Kyra.

PHILLIPS: Barack Obama is courting Latino voters in Florida today, and the Democratic presidential front-runner takes his first step toward selecting a running mate. CNN's Jessica Yellin takes a look at some of those contenders.

(BEGIN VIDEOTAPE)

JESSICA YELLIN, CNN CORRESPONDENT (voice-over): He said it over --

SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: I still have to win a nomination.

YELLIN: And over.

OBAMA: It would be presumptuous of me to pretend like I've already won and start talking about who my vice president is going to be. I've still got some more work to do.

YELLIN: And over again.

OBAMA: Until I'm the nominee, I don't want to speculate on running mates.

YELLIN: But now, Barack Obama is quietly beginning to search for a running mate. Obama's campaign isn't commenting, but sources say helping in the hunt is Jim Johnson, a long-time Washington insider who performed the same role for John Kerry and Walter Mondale.

CNN learned that top considerations for the vice presidential slot are likely to be age, since Obama is only 46, and national security experience. The question on everyone's mind, will Obama look to his rival for the number two job?

(BEGIN VIDEO CLIP, CNN'S "SITUATION ROOM WITH WOLF BLITZER") OBAMA: Senator Clinton has shown herself to be an extraordinary candidate, and she's tireless, she's smart, she's capable. And so, obviously she'd be on anybody's short list to be a potential vice- presidential candidate.

(END VIDEO CLIP)

YELLIN: Or he could pick a major Clinton backer, such an Indiana Senator Evan Bayh, Ohio Governor Ted Strickland, or Pennsylvania Governor Ed Rendell, who could help deliver key swing states. Then there's John Edwards who dropped out of the race and endorsed Obama this month.

OBAMA: John Edwards is obviously somebody who would be on anybody's short list, but it is premature.

YELLIN: But Edwards was John Kerry's running mate and says he's not interested. Other possibilities, New Mexico Governor Bill Richardson. His resume is long on foreign policy experience, and he'd appeal to Latino voters. Kansas Governor Kathleen Sebelius would help with the women's vote, but insiders say the overriding consideration is national security experience.

On that front Senator Joe Biden, former Senator Sam Nunn, or retired General Wesley Clark are all contenders.

YELLIN (on camera): Then there are unconventional options. Former Senator Tom Daschle, an Obama campaign adviser, could help with the senator's small town America appeal, or Senator Chuck Hagel, a Republican, would take the ticket bipartisan.

Ultimately, the real challenge for Obama will be finding a running mate who brings him Washington experience but can still run on a change ticket. Jessica Yellin, CNN, Boca Raton, Florida.

(END VIDEOTAPE)

ROBERTS: Just turning five minutes after the hour. Breaking weather news in the west and central part of the country to tell you about this morning. Dangerous thunderstorms with a threat for tornadoes on the move across the country. Large hail, strong winds, heavy flooding could hit from Oklahoma to Kansas to Nebraska all the way up to Wyoming.

There's a state of emergency in place in Colorado this morning hours after a deadly tornado hit there. And new video this morning of a giant funnel cloud and golf ball-sized hail. About 100 children from a daycare center managed to get to safety just before the tornado hit. One man had his camera rolling.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Wow! Oh, my God. Oh, my God. That's a tornado right there. Here it comes.

(END VIDEO CLIP) ROBERTS: The most damage from the twister occurred in the town of Windsor. It's about 60 miles north of Denver. Dozens of homes completely destroyed. One person killed trying to outrun the storm.

And wild weather in southern California today. Amazing pictures of a funnel cloud east of Los Angeles. How rare is that? At least two tornadoes, hail, even snow reported in some spots -- Kyra.

PHILLIPS: Tell me also, a breaking news out of Myanmar. International help is heading to the victims of the devastating cyclone. U.N. Secretary-General Ban Ki-moon says that the military junta will allow foreign relief workers into the country to help survivors, but it's not clear if the government will allow aid from U.S. naval ships that are still on stand by.

Secretary of State Condoleezza Rice is defending the harsh interrogation of terror suspects after 9/11. Rice says that the methods were necessary to protect America from new attacks, but insists that they complied with U.S. law and international treaty obligations.

Rice's comments came during a town hall meeting at Google's headquarters in California. She was actually responding to a question about waterboarding, a simulated drowning interrogation that many people consider to be torture.

Well, a settlement has been reached in that case of the massive pet food recall last year. It was linked to the deaths of hundreds of pets in the U.S. and Canada. The makers of the food agreed to set up a $24 million fund, and that money will be used to compensate pet owners. Shortly after the recall, scientists discovered that the food was contaminated with a wheat gluten imported from China.

ROBERTS: Record oil prices causing a ripple effect all through the economy. See how the high cost of fuel will hit you in the wallet in more ways than one. That's ahead.

And child custody battle. Church versus state. The mothers of that polygamist ranch in Texas say their children were never in any danger, and now a court agrees with them. Will the children be going home anytime soon? That's ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

PHILLIPS: Record oil prices hit one of America's biggest automakers. Stephanie Elam in for Ali Velshi this morning.

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Good morning.

PHILLIPS: How are you?

ELAM: I'm good. Good to see you both.

ROBERTS: Good to see, Steph.

PHILLIPS: She has hair. ELAM: Yes, I do. I brought my hair today. It's hairy Friday. Oh, yes, I'm glad.

ROBERTS: We could get hair for Ali, too.

PHILLIPS: That's right.

ELAM: It looked weird.

PHILLIPS: We saw that wig. It didn't look right. He wasn't happy.

ELAM: He was not happy. You know who else is not happy? If you take a look at Ford, they are having a rough time. So they have said that they are no longer going to -- actually I have to say they are cutting back their truck and SUV production for the rest of the year, including their best selling F series truck.

We all know the F-150. That's a best-selling truck in America. So that's a big deal here. They are blaming gas prices which they're saying $4 a gallon gas that's here to stay. So because of that they're switching over and making some of their more fuel efficient cars like the Focus and the Edge. So that's where their focus is going to be.

Now, this does tie into oil. Yesterday we had a new high during the day session of $135.09. At the close, we are $130.81. That is down $2.36 that helped out the airlines briefly. A little bit gave them a little rest because they've been having a hard time. But overall, you can see the effects of these oil prices going so high -- Kyra, John.

PHILLIPS: Well, you mentioned the airlines. I mean, that's what we're talking about yesterday. All these prices that have been tacked on to the ticket. Not only are ticket prices going up but, you know, you're paying for your luggage and everything else.

ELAM: Yes, it's out of control. It seems like --bottom line, out of control.

Well, there's other fees that you're not seeing just beyond paying for the plane ticket, I mean, to check your bags, but also other things. If you want to bring your pet on board, you're going to have to pay for that. So a lot of airlines looking at ways to subsidize their income because of the gas prices.

ROBERTS: You got to wonder if the economy is at a tipping point here with the price of gas. That's something that we'll talk with Lakshman Achuthan about in just a few minutes' time.

Another story that we're following this morning, these wildfires in Santa Cruz County in California. You're from there.

ELAM: Yes, it's actually Santa Clara County. It's the southern part of the county from where I grew up. I grew up closer to San Jose. I grew up in a town called Saratoga, but I'm getting married in August right by where these fires are burning. So, it's very close.

I keep checking in. Everyone is OK in my part of the world, but this is a big agriculture area. Gilroy, which is right near here is the garlic capital of the world. They have a garlic festival every year. There's a lot of artichoke growing there. So it would have an effect if we did see those get more out of control.

ROBERTS: Extremely dry there with those high temperatures they've been experiencing.

ELAM: It's been really hot, especially this time of year. You don't normally see it like that, so that does not help.

ROBERTS: Stephanie, thanks, and let's hope everything is all right.

ELAM: Yes, keep our fingers crossed.

ROBERTS: All right.

Besides California, wild weather slamming other parts of the country. Families running for cover as a tornado tears up Colorado.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I was pretty scared. I was afraid that my family was going to get hurt.

(END VIDEO CLIP)

ROBERTS: Rob Marciano is tracking the extreme weather for us. We'll have him coming right up.

And Senator Ted Kennedy speaking out for the first time since being diagnosed with a brain tumor. Hear what he had to say, ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

ROBERTS: Hail as large as golf balls in northern Colorado. You can hear it coming down there. The storm also spawning a deadly tornado that sliced a 35-mile path of destruction through several towns.

Dozens of homes were ripped off their foundations. Strong winds overturned tractor trailers, flipped over freight cars on the railway. At least one person was killed there trying to outrun the storm.

PHILLIPS: Rob Marciano following all those pictures for us and all the extreme weather across the country this morning. Even here in New York, right, Rob?

ROB MARCIANO, AMS METEOROLOGIST: Exactly. Yes, although it will be a lot more tranquil here in New York for sure. We had several tornadoes touch down yesterday, 46 in all across five different states. Here is a look at it on the map. A bunch concentrated in western parts of Kansas, and the most stunning came across parts of Colorado north of Denver, where we had about 10 reports of tornadoes there. Much was caught on tape in parts of Weld County near Grilli (ph), which ironically enough has a meteorology department in the University of Northern Colorado there. So Met students are getting a field study.

The other odd thing yesterday was what happened in southern California. Riverside, California, reporting a tornado or a land spout. Basically a very small tornado that didn't do a whole lot of damage to it near the March Air Force Base.

So wacky weather yesterday and we're going to see it again today. We're going to concentrate more across parts of Kansas, Nebraska and Oklahoma today.

Here's where it's happening right now. We are still seeing some severe thunderstorms across parts of Kansas just to the west of Wichita and heading over haze. Right now, at least this morning, these generally are going to have a threat for seeing some large hail.

We had over 100 reports of hail yesterday. We'll have similar numbers I think today, but a moderate risk for seeing a more severe weather including large long track tornadoes across this part of Tornado Alley again today.

So very, very active this time of year, and boy, that was some dramatic video we saw yesterday. We've got more of it that we'll be showing throughout the morning with these storm chasers that were running this stuff down yesterday -- John and Kyra.

ROBERTS: Looking forward to that, Rob. And good to have you in New York today.

MARCIANO: Great to be here.

ROBERTS: Welcome.

Spanning generations in your "Hot Shot" now. Fireworks lit up the sky over the Brooklyn Bridge last night for its 125th birthday bash. It was an absolute engineering marvel when it opened back in 1883. The bridge costs $15 million, took 13 years to build, back when manpower was the most valuable natural resource.

PHILLIPS: So I had a taxi ride yesterday. I met Coney Island Frank and apparently, he told me these fireworks somewhat match up to this every Friday night there on Coney Island.

MARCIANO: Oh, come on.

PHILLIPS: Yes.

ROBERTS: Coney Island Frank didn't try to sell you the Brooklyn Bridge, did he?

(LAUGHTER) PHILLIPS: No, but he tried to sell me on his restaurant and coming up with a fireworks show.

ROBERTS: Everybody is trying to sell something.

MARCIANO: Can you imagine living back in that time when they were building that thing?

ROBERTS: How many people died? Do you remember?

MARCIANO: I don't know.

ROBERTS: One of the things they suffered because they had to drop the case on so deep in the East River was they got the bends when they came up. You know, you get that when you go diving and you come up too fast.

PHILLIPS: That is no fun. I've had that before. That is no picnic. That's true.

Boy, we took a sour turn there. We don't want to talk about -- yes.

MARCIANO: It's a beautiful structure.

PHILLIPS: There we go.

MARCIANO: We appreciate the sacrifice by those who built it 125 years ago.

PHILLIPS: Way to recover for us. Thank you, Rob.

MARCIANO: All right.

PHILLIPS: Well, here's a letter. No.

Laura and Jenna Bush, the secrets to a First Daughter's wedding. They gave the inside dish to Leno, and hey, we got the video.

Also, if you're trying to dump your gas guzzling SUV for a fuel efficient car, you may have some sticker shock. Find out why dealers are giving you a lot less money for that big car. That's straight ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

ROBERTS: It's coming up now on 20 minutes after the hour.

Senator Ted Kennedy speaking out for the first time since being diagnosed with a brain tumor. The senator is back home at Hyannis Port and told reporters he is grateful for the outpouring of support that he's received.

(BEGIN VIDEO CLIP)

SEN. EDWARD KENNEDY (D), MASSACHUSETTS: We've received an incredible amount of wonderful notes and letters from friends and colleagues from the Senate and as well as from people here in Massachusetts. They've all been very touching.

VICKI KENNEDY, WIFE OF SENATOR EDWARD KENNEDY: And the wonderful outpouring of support. Wonderful.

(END VIDEO CLIP)

ROBERTS: Kennedy also praised the doctors and nurses who treated him saying they were "just spectacular."

PHILLIPS: Well, First lady and new bride Jenna were on Jay Leno last night. They talked about her top secret wedding down on the Bush ranch in Crawford, and whether the father and chief held it together.

(BEGIN VIDEO CLIP, NBC "THE TONIGHT SHOW WITH JAY LENO")

JAY LENO, HOST, "THE TONIGHT SHOW WITH JAY LENO": Who was more emotional, mom or dad?

LAURA BUSH, FIRST LADY OF THE UNITED STATES: Dad.

LENO: Really?

L. BUSH: By far.

LENO: Was he shedding a couple tears?

L. BUSH: Started on the way down the aisle.

LENO: Yes, yes.

JENNA BUSH, FIRST DAUGHTER: He couldn't get through his toast either.

L. BUSH: No.

J. BUSH: I asked him if he wrote it because I would like to read it.

(END VIDEO CLIP)

PHILLIPS: That's pretty funny actually. I wonder if she -- so, I wonder if she did get a chance -- I guess she didn't get a chance to look at it then. She wanted to proofread the toast?

I don't know. She doesn't trust her own father to give the toast.

ROBERTS: Apparently, too, they had a little bit of a storm there in Crawford just before the wedding, and Laura Bush had to really take charge there and put everything back together because it all got a little bit messed up.

Jenna also told Jay who she voted for on "American Idol." Who do you think? PHILLIPS: Oh, I don't know.

ROBERTS: Which of the Davids?

PHILLIPS: I haven't stayed -- I haven't kept up. Have you kept up with that?

ROBERTS: Yes.

PHILLIPS: Really? I like the guy with the dreadlocks. He got knocked off.

ROBERTS: Gone long time ago.

ROBERTS: She voted for David Cook.

John McCain rejecting the endorsement of controversial televangelist, John Hagee, after hearing his comments about God, Hitler and the Holocaust.

(BEGIN VIDEO CLIP)

PASTOR JOHN HAGEE, TELEVANGELIST: Behold I will send for many fishers and after will I send for many hunters. And they, the hunters, shall hunt them. That would be the Jews.

(END VIDEO CLIP)

ROBERTS: McCain pursued Hagee's endorsement prior to the Texas presidential primary. He wanted some help to win over religious conservatives.

And this morning we're asking, is the media treating the McCain/Reverend Hagee controversy the same way it treated the Obama/Reverend Wright controversy. Tell us yes or no.

Cast your vote at CNN.com/am and send us your thoughts as well in the form of an e-mail. Go to CNN.com/am and click on the link that says "e-mail us."

PHILLIPS: Yes.

ROBERTS: If you want to rip us, go ahead.

PHILLIPS: No, we don't want that. We only want nice females.

Gas prices, domino effect. Well, we're going to take a closer look at how it's taken money from your wallet for everything, from clothes to food.

And putting Barack Obama on the cover and in the crosshairs. The backlash, the apology, and the editor's explanation, straight ahead on AMERICAN MORNING.

(COMMERCIAL BREAK) ROBERTS: Coming up on 25 minutes after the hour. High oil prices are raising the cost of everything that we buy. So if oil prices keep rising, could the current economic slump get a whole lot worse? Where is the economy headed?

Joining me now is Lakshman Achuthan. He is the managing director of the Economic Cycle Research Institute. And I was watching Susan Lisovicz the other day, and she was talking about the Dow going down, the price of oil going up, and she said, and because of all this American Airlines now charging you $15 to check your first bag. And I'm thinking to myself, have oil prices got us at a tipping point in the economy here?

LAKSHMAN ACHUTHAN, ECONOMIC CYCLE RESEARCH INSTITUTE: The short answer is yes. Now backing off of that answer...

ROBERTS: Right.

ACHUTHAN: ... essentially, I believe, looking at all the metrics I'm looking at, including what Susan was mentioning, you know, the stock market, the oil prices, that we are in a mild recession as it is. But when we start approaching this $150 mark, which seems very much within striking distance, and well over $4 a gallon gas at the pump, we start talking about something worse than a mild recession. Another leg down, and that I think is very, very worrisome.

The reason is is because the forward-looking indicators, like where corporate profits are going, where are jobs going? You know, what's going on with housing? When those things are all headed down and you have a spike in oil, that's a nasty combination.

ROBERTS: So when oil prices go up they touch literally everything that oil or gasoline touches.

ACHUTHAN: Yes.

ROBERTS: How deep do you think this is going to dig? How deep do you think it's going to bite?

ACHUTHAN: Well, first off, it's like a laser beam hitting middle class, lower middle class, lower income. They are getting hit very hard and immediately you're seeing that in the economy, in the stock market, where anybody who is in the business of selling something that can be put off, is having trouble.

ROBERTS: Yes. Because if you have to spend $100 to fill your gas tanks...

ACHUTHAN: That's right.

ROBERTS: ... there are other things that you're not going to buy.

ACHUTHAN: Yes, we're all rational. If you have to fill your gas tank, if you have to put food on the table, then maybe you're not going to get that, you know, designer shoe just this time. ROBERTS: Well, I had one fellow e-mail me to say now that it cost me $90 to fill up my tank, I can't afford my satellite TV anymore, so I've got to say goodbye to CNN, thanks very much. I'm going back to a terrestrial antenna to pick up the other signals.

ACHUTHAN: There you go. Well, I mean, that's a very harsh example of it, but that is what's going on nationwide, and that is why it is something very serious to be taken. These spikes, these negative shocks, it could be oil. It could be some other negative shock, but where we are in the business cycle right now is quite vulnerable.

It's different than the last few years because in '04, in '05, in '06, in '07, we had spikes in oil without a recession. This time it's different.

ROBERTS: What do you make of Ford saying that it's going to cut production by 15 percent, closing more plants, lay off a bunch of workers, maybe get rid of a lot of its truck line?

ACHUTHAN: You see all of this Ford, what they're doing in pulling back, American Airlines essentially pulling back when they hike their rates like that, they're essentially pulling back their business a bit, all of those are showing you how this impacts the drivers of the economy, because it is making these companies less profitable.

When they are less profitable, they need to pull back. When they pull back, they let people go, incomes go down, employment goes down, the economy is more subdued. That's essentially a recession. That is the mechanism of a recession.

ROBERTS: Is this a cycle that could begin to accelerate? Everything feeding off of everything else?

ACHUTHAN: Well, here, the spike in energy right here can make this accelerate into a sharper leg down. That's my worry. My base case is still a mild recession, however, if we keep getting the spikes into the summer, there's a risk to that case of another leg down.

ROBERTS: What about the big "D" word?

ACHUTHAN: I don't think we go that far because we do have some strong policies and a lot of stimulus in place.

ROBERTS: And just before we go, where's the price of gas headed do you think?

ACHUTHAN: Well, it seems very clear. It's headed up. The reason is because --

ROBERTS: Do you have a price?

ACHUTHAN: Well, you know, I'm seeing people starting to think about towards $5 now on the tank of gas. I think that's within striking distance because of a speculative bubble. It's tough to put speculation back into a box once it starts.

ROBERTS: It is. Lakshman, it's always great to see you.

ACHUTHAN: Thank you.

ROBERTS: Thanks for coming in this morning.

ACHUTHAN: Thank you.

ROBERTS: Kyra?

PHILLIPS: This morning, it's not clear whether the children seized from a Texas polygamist ranch will be returned to their parents soon. An appeals court ruled that the state had no right to remove those kids from the compound, but the state could appeal to a higher court and keep the children from immediately going on.

CNN's Ed Lavandera is live in San Angelo, Texas, with more. Hi, Ed.

ED LAVANDERA, CNN CORRESPONDENT: Good morning, Kyra. Well, officials here are waiting to see how state officials here in Texas will react to this news from yesterday and what kind of game plan they'll follow next. But all along here in San Angelo in child custody hearings attorneys for the children have been saying that the state's case is slowly falling apart.

(BEGIN VIDEOTAPE)

LAVANDERA ((voice-over): It is a scathing opinion issued by the Texas Court of Appeals. The nine-page decision blasts fellow judges and the Department of Family and Protective Services ruling there was no evidence children would be subjected to sexual or physical abuse, that there was no subjected to sexual or physical abuse, that there was no evidence they were in urgent danger, and no evidence that required their immediate removal from the compound.

The appeal was brought by 38 mothers whose children were removed from the Yearning for Zion compound. The ruling only affects their children, but outside the courthouse a lawyer representing the mothers said the reasoning would apply to all of the children.

JULIE BALOVICH, TEXAS RIO GRANDE LEGAL AID: That the Court of Appeal has stood up for the legal rights of these families and given the mothers hope that their families will be brought back together very soon.

LAVANDERA: The opinion also throws out the earlier order granting temporary custody of the children to the state. This historic custody battle began in early April, acting on phone calls whose authenticity is now being doubted by the court. Authorities raided the ranch and removed more than 460 children.

The FLDS denies allegations of sexual or physical abuse and says that they are being persecuted for their religious beliefs. Responding to the appellate court's opinion, a spokesman for the Department of Family and Protective Services released a statement saying, "We just received this information from the court of appeals and it is being reviewed. We are trying to assess the impact this may have on our case and what our next steps will be."

Kids are living in shelters across the state and will remain there for at least the next ten days. That's how long the state has to appeal this court ruling or return the children to their mothers.

(END VIDEOTAPE)

LAVANDERA: And you hear attorneys for these children kind of pointing to two things as to why they think the states case is falling apart. Number one, they say that as case workers have been testifying here in San Angelo all week, they are unable to point to any specific evidence of abuse in each of these children's cases.

And also they point to what the state said originally when they removed the children from the ranch, that there were some 31 mothers that were believed to be pregnant or under age at the time that they became pregnant. That number is now down to five. They say that really puts a hole in their argument that there was a widespread pattern of abuse going on inside this compound.

Kyra?

KYRA PHILLIPS, CNN ANCHOR: Well, you can't help to think what's going to happen to all those children. Ed Lavandera live from San Angelo, Texas. Thanks, Ed.

JOHN ROBERTS, CNN ANCHOR: An apology for picturing Barack Obama in the crosshairs. This is from the cover of the Roswell Beacon's May 15th edition. It's a free weekly distributed to about 65,000 people in Georgia, but a liberal blog picked up the picture triggering a string of complaints. One post said the last thing we need is for a newspaper to suggest assassination. The editor is now saying he's sorry, but he also says you can't judge just by the cover.

(BEGIN VIDEO CLIP)

JOHN FREDERICKS, BEACON MEDIA PUBLISHER: People are looking only at the cover and making a snap judgment in a highly-charged environment. I do want to say though for anybody that has been offended by the image or upset by the image, we, as a company, give our sincerest apology.

(END VIDEO CLIP)

ROBERTS: The article discusses how law enforcement is handling threats against the candidate by white supremacist groups.

John McCain is cutting ties with two controversial televangelists. He had once accepted their backing in a bid to win support from religious conservatives. But McCain is now rejecting the endorsement of Pastor John Hagee over remarks that he made about the holocaust as well as the backing of Rod Parsley who called Islam inherently violent. More on that now from CNN's Brian Todd. (BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice-over): John McCain now rejects an endorsement that was once seen as critical to his conservative credentials.

PASTOR JOHN HAGEE, CORNERSTONE CHURCH: John McCain will be a strong, courageous, and effective leader from the first day he steps into the Oval Office.

TODD: Pastor John Hagee, a popular televangelist from San Antonio with a 19,000-member church and a TV ministry seen around the world.

McCain's campaign tells us, when Hagee endorsed McCain in February, McCain was not aware of remarks Hagee had made in a sermon years earlier. Hagee cited biblical passages, spoke of what he believed was God's plan to bring the Jews back to Israel.

HAGEE: God says in Jeremiah 16, behold, I will bring them, the Jewish people again unto the land that I gave unto their fathers. Behold, I will send for many fishers. And after will I send for many hunters. And they, the hunters, shall hunt them. That would be the Jews.

TODD: Hagee then says those Jews who didn't follow Zionism's founder back to Israel went through the Holocaust.

HAGEE: Then God sent a hunter. A hunter is someone who comes with a gun and he forces you. Hitler was a hunter.

TODD: These passages were recently posted by blogger Bruce Wilson, an admitted critic of Hagee and the religious right. Wilson told us he voted for Hillary Clinton, but was not steered toward this by any Democratic operatives.

Pastor Hagee would not do an interview with us, but issued a statement saying he had been intentionally mischaracterized and, "To assert that I in any way condone the Holocaust or that monster Adolf Hitler is the biggest and ugliest of lies."

A representative for Pastor Hagee says he was trying to explain to his parish how God could let something so terrible happen. Hagee's been a strong supporter of Israel for years. A leader of one prominent Jewish group does not believe the pastor is anti-Semitic, but says --

RABBI DAVID SAPERSTEIN, RELIGIOUS ACTION CENTER OF REFORM JUDAISM: The notion that the Holocaust was part of God's plan as a way of punishing the Jews is a deeply, deeply troubling assertion that should be repudiated by all people of conscience.

TODD: John McCain not only repudiates Hagee's remarks, but now says in a statement to CNN, "I feel I must reject his endorsement as well." McCain says Hagee's never been his pastor, and the campaign says the candidate never had the kind of relationship with Hagee that Barack Obama had with Reverend Jeremiah Wright.

Hagee reacted by saying he's tired of baseless attacks, that they have become a distraction, and quote, "I have therefore decided to withdraw my endorsement of Senator McCain for president." But McCain's got another pastor problem.

PASTOR ROD PARSLEY, TELEVANGELIST: Islam is an anti-Christ religion that intends, through violence, to conquer the world.

TODD: Pastor Rod Parsley, another popular televangelist who also endorsed McCain in February.

IBRAHIM HOOPER, NATIONAL COMMUNICATIONS DIRECTOR, COUNCIL ON AMERICAN-ISLAMIC RELATIONS: Well, it was shocking to hear that Senator McCain would associate himself with someone who holds such bigoted views against Muslims and Islam.

TODD (on camera): Parsley spokesman told us his statements were in response to militant Islam and its threats to kill Americans. He said Pastor Parsley believes Christians should be supportive of moderate peaceful Muslims. Brian Todd, CNN, Washington.

(END VIDEOTAPE)

PHILLIPS: The inside scoop on Hillary Clinton's exit strategy. "Time" magazine shares their sources right here on CNN and find out what's being said behind the scenes about Hillary Clinton and possible vice presidency.

And many drivers are now trying to ditch their SUVs to get more fuel efficient cars but the gas guzzlers aren't easy to get rid of. That story next on AMERICAN MORNING.

(COMMERCIAL BREAK)

ROBERTS: 38 minutes after the hour. Welcome back to the "Most News in the Morning." With gasoline prices climbing higher by the day, many SUV drivers are looking for more fuel efficient wheels.

PHILLIPS: But getting rid of those big gas guzzlers is not easy. CNN's Chris Lawrence has the story.

CHRIS LAWRENCE, CNN CORRESPONDENT: John, Kyra, people are fed up. They are tired of paying 80 bucks to fill up their tank, but getting out of an SUV and into a smaller car, easier said than done.

(BEGIN VIDEOTAPE)

LAWRENCE (voice-over): It's been weeks since David Lavi put his truck on the market.

DAVID LAVI, TRYING TO SELL TRUCK: Nobody has offered on it.

LAWRENCE: He wants out so he can buy a small car. But gas prices have sent SUV and truck sales plummeting.

LAVI: I get a lot of calls people are looking for a better price.

LAWRENCE: So what's flying off the lot now?

JORGE FERNANDEZ, WHOLESALE AUTO DEALER: Chevy Impalas, Malibus, Fords. You know, cars that fit in the -- weren't that popular before.

LAWRENCE: Call it revenge of the nerds, but we compare a new to used -- remember this, last year the government adopted a new mileage formula to correct the exaggerated climbs made when those old economy cars were first sold. Still, that hasn't stopped the run on four cylinder cars.

(on camera): What do people say when they bring in SUVs like this excursion and say, hey, this is what my truck is worth?

LAVI: When they find out what you think their truck is worth, they think you're trying to rip them off or something. Some '07s were worth $50,000, $60,000 just three or four months ago and they're in the high 30s now. It's amazing.

LAWRENCE (voice-over): Some owners now owe $20,000 on a truck that's only worth 12. There is upside down as a bad mortgage and think buying a small car will save them.

JACK NERAD, KELLEY BLUE BOOK EDITOR: But what they might be doing is spending thousands of dollars to save hundreds.

LAWRENCE: Kelley Blue Book editor Jack Nerad says if the numbers are working against you, don't sell your big truck.

NERAD: Because if you make a trade, you're most often going to spend more to make that move than you would just sucking it up and paying the extra gasoline prices.

(END VIDEOTAPE)

LAWRENCE: Some officials at Kelley Blue Book say we've really reached a tipping point. In the day of SUVs and trucks dominating the market, that's done.

John, Kyra?

ROBERTS: Right. Chris Lawrence for us this morning.

You really have to wonder, you know, how much longer can people afford to drive these big cars when they cost that much money to put gasoline in. But then, what's the alternative? What other new car that gets more gas mileage instead of --

PHILLIPS: You and Ali Velshi said eventually the consumers start to turn things around. And already, Ford -- they're cutting down on making these SUVs and these gas-guzzlers. And so, it will be interesting to see how long that takes for everything to come back around on the good side.

ROBERTS: I tell you, I think Chris is right. We're at a tipping point here. We'll see.

PHILLIPS: Senator Joe Biden hitting back at the Republicans on foreign policy. Tough words for John McCain. He says the saber- rattling achieves nothing. Senator Biden joins us live next hour.

And Rob Marciano covering the state of emergency in Colorado.

Great to have you here with us.

ROB MARCIANO, CNN METEOROLOGIST: Nice to be here as well. Colorado, man, it's got hammered yesterday. Crazy weather across much of the country, including California. Now the action is in Kansas. And we have another severe threat today. Big time hail yesterday. We'll see more twisters today. Complete weather coming up when AMERICAN MORNING comes right back.

(COMMERCIAL BREAK)

(WEATHER REPORT)

PHILLIPS: Well, taking a look at the health of a man who could become president. Today, John McCain's medical records are being shown to reporters, including our own Dr. Sanjay Gupta. What they could reveal, on our next hour.

ROBERTS: And new questions today about the children seized from that polygamist compound in Texas. The Court says the state did not have the right to take them. So, what happens to the children now?

Our AMERICAN MORNING legal analyst Sunny Hostin gives us her opinions. It's coming up next.

(COMMERCIAL BREAK)

ROBERTS: Coming up on nine minutes to the top of the hour. A Texas Appeals Court dealt a defeat to the state's child protective service agencies when it ruled that the children of 38 women should not have been seized from a polygamist compound. The parents from the Yearning for Zion Ranch are hailing the decision, which could mean that their children will be returned to them. Joining us now with more on the case is AMERICAN MORNING's legal analyst Sunny Hostin.

How did the court come to this decision?

SUNNY HOSTIN, CNN LEGAL ANALYST: You know, the court really analyzed the statute here in determining whether or not the Department had met its burden of whether or not these kids should have been taken from their parents. And take a look here.

The Court found that there was no evidence that the children would be subjected to sexual or physical abuse. The Court also found no evidence that they were in urgent danger and, finally, no evidence that required their immediate removal from the compound. And that's the thing. The Court here said, you know, there was something else that could have been done, something less aggressive. You didn't do the right thing.

ROBERTS: And we talked to the Texas Attorney General about this case the day that it went to court. And he said that they had a number of teens who were pregnant. So, something, it would appear, was going on at the ranch.

HOSTIN: Absolutely.

ROBERTS: This relates, as we said, to 38 women -- the children of 38 women. What bearing does this ruling have on the other children who are there?

HOSTIN: Well, John, I think we're going to see a flurry of motions. I think every single mother is now going to file a motion and say -- and use this decision as precedent saying, "I want my kids back, too. You've got to look at this. Everything here was wrong." And we are going to see that. Absolutely. No question.

ROBERTS: So, the children still in custody?

HOSTIN: They are still in custody, but --

ROBERTS: Could some of them go back?

HOSTIN: They could go back. The District Court has ten days to reverse its ruling. But judges don't like to reverse their ruling. And so what could also happen, John, is that the Department could decide to appeal this to the Texas Supreme Court and that means there's going to be a complete stay and everything is going to stay as it is. And as you mentioned, I mean, you know, people think something happened here.

This is a polygamist sect. So I'd be very surprised if nothing happened. If the kids just went back to their parents. I don't think that's going to happen exactly.

ROBERTS: Right. We tried to get the Texas Attorney General on this morning. They declined. But certainly, I would imagine that they're going to pursue this case.

HOSTIN: I think so. I think there's going to be another review of this.

ROBERTS: All right. Sunny Hostin, thanks very much.

HOSTIN: Thanks.

ROBERTS: Kyra?

PHILLIPS: Wait a second. A Friday extra with Sunny Hostin. We were wondering, every time she walks out, John sings the song, Sunny.

HOSTIN: I love that.

PHILLIPS: Bobby Heb.

ROBERTS: Bobby Heb.

PHILLIPS: Bobby Heb, there you go. Do you want to sing us to break?

ROBERTS: No, I'm fine. I'm fine.

PHILLIPS: Oh, but Sunny has got her groove on. She's standing. That's how we want to wrap up this Friday legal segment.

Well, John McCain rejecting the endorsement of controversial televangelist John Hagee after hearing his comments about God, Hitler, and the holocaust. So this morning we're asking -- Is the media treating the McCain-Reverend Hagee controversy the same way it treated the Obama-Reverend Wright controversy.

Right now, 13 percent of you saying yes, 87 percent saying no. Just head to cnn.com/vote. You can also send us an e-mail. Let us know why you voted the way you did. Again that's cnn.com/am.

ROBERTS: Look and listen. John McCain releasing his medical records in a super top secret briefing. Dr. Sanjay Gupta sits in.

Is the 71-year-old war hero fit for duty?

Plus, exit strategy.

(BEGIN VIDEO CLIP)

SEN. HILLARY CLINTON (D-NY), PRESIDENTIAL CANDIDATE: Let's keep fighting for America.

(END VIDEO CLIP)

ROBERTS: Still talking tough, but we'll talk to a reporter who may know Hillary Clinton's terms of surrender.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

BARBARA EFFMAN, CLINTON DELEGATE: This is not about the Hillary Clinton campaign. This is not about the Barack Obama campaign. And this is not even about the Florida Democratic Party. This is about democracy and this is about how we value our votes and how we value the United States of America.

(END VIDEO CLIP)

PHILLIPS: The Florida delegate dilemma now headed for a higher battlefield. The courtroom. Florida's top Democrat is suing the Democratic Party saying it's punishing the state too severely for moving up its primary earlier this year. Steve Geller says that it's not to help or hurt a candidate, but to just make sure the voters are heard. (BEGIN VIDEO CLIP)

STEVEN GELLER (D), FLORIDA SENATE MINORITY LEADER: We are not filing this lawsuit to try and help or hurt any candidate. We're filing this lawsuit because the three of us are Democratic leaders in the State of Florida, and our concern is to make sure in Florida that all of the votes are counted.

(END VIDEO CLIP)

PHILLIPS: It's not the first lawsuit filed over the delegate dilemma, by the way. The Democratic National Committee will decide what to do with Florida's and Michigan's delegates on May 31st.

Senator Hillary Clinton says that those delegates and Florida's vote totals will change the nomination race, but what happens if they don't? She's already been the first lady and a two-term senator, but if she misses out on the presidency, what will her exit strategy be?

Karen Tumulty national political correspondent for "Time" magazine wrote an article about that this week called "What Does Hillary Want?" She joins me now live from Washington.

Karen, great to see you.

KAREN TUMULTY, NATIONAL POLITICAL CORRESPONDENT, "TIME" MAGAZINE: Hi, Kyra.

PHILLIPS: Right off the bat in your article, you say a graceful exit is never easy in a business as fraught with ego and ambition as presidential politics. That's an attention grabber. How do you know that she's working on this exit strategy?

TUMULTY: Well, a lot of her supporters are already calling the top officials in the Obama campaign. There is a very much of a lobbying campaign going on, at least among her supporters to get her on the ticket. And also behind the scenes, her husband is saying that he thinks that Hillary Clinton has earned the number two spot on Barack Obama's ticket. So that, of course, is the big prize here.

But the fact is, you know, the campaign is already thinking ahead to, you know -- both campaigns are thinking ahead to what it's going to look like starting on June 4th when all the voting is over with.

PHILLIPS: Well, and Karen you know, we continue to hear the senator say, you know, it's not over until it's over or until -- what is it the woman in the pantsuit says something. I can't remember the exact quote, but you know, she's a continual fighter. Take a listen to what she said just the other day.

(BEGIN VIDEO CLIP)

SEN. HILLARY CLINTON (D-NY), PRESIDENTIAL CANDIDATE: Look at what we have to do to win. Look at the states I have won. Look at the states I'm leading in. Look at the electoral map. It is clear I am the stronger candidate against John McCain. (END VIDEO CLIP)

PHILLIPS: Is it just posturing?

TUMULTY: No, it's not. I mean, she is going to see this thing through right until the end, and in part that is to increase the amount of leverage that she is going to have when it's over with.

She's looking at these gigantic victories that she had in Kentucky and West Virginia. She is expecting another one in Puerto Rico. This is going to boost her popular vote total. It's going to give her some more delegates and it's going to give her a stronger argument that something, some measure of respect has to be accorded to this long and hard effort that she has fought because this has been a very close race.

PHILLIPS: And you have obviously incredible sources and you're talking about the exit strategy here as well as talking about her fight. But does she want that number two slot? Is that the ultimate goal?

TUMULTY: Well, I think if it is offered, everyone around her thinks that she will take it. But they are also quite skeptical as to whether it will in fact be offered, because -- well, there are number of reasons. There are -- you know, one problem is the fact that, you know, Bill Clinton makes it a pretty crowded ticket.

But also it would undercut Barack Obama's message of change and a different kind of politics. On the other hand, they are going to have to deal with the fact that there are a lot of people out in this country who have supported Hillary Clinton who are going to be very disappointed. And so what they are going to have to do is come up with something that will encourage her to throw herself very actively and enthusiastically into this campaign going into the fall.

PHILLIPS: Can she? But if indeed she doesn't make it, can -- as you write in the article -- can she get past that pain, that's a quote actually from Jesse Jackson, who you said has experienced that in a primary.

Can she get past the pain of not winning and get behind the Obama campaign wholeheartedly?

TUMULTY: Oh, you bet. I mean, this has happened before. But I think that there will be a lot of things that the Obama campaign could do to help her get past that pain.

One thing would be a highly visible role at the Democratic convention -- even being talked about the possibility of putting her name on the first ballot and letting her supporters have a big demonstration on the convention floor. A high profile speaking spot at the convention, and also some help in paying back that $20 million debt.

PHILLIPS: Oh, yes. Well, she's got no problem plugging for money. That's for sure. Karen Tumulty, "Time" magazine. Great to talk to you this morning.

TUMULTY: Thanks a lot, Kyra.

PHILLIPS: John?

ROBERTS: Another split this morning between a presidential candidate and a pastor. This time the presumptive Republican nominee John McCain cutting ties with controversial pastor John Hagee. The Texas televangelist helped him in his bid with religious conservatives earlier this year, but McCain rejected Hagee's endorsement after some of Hagee's remarks made the rounds on YouTube preaching about God, Hitler, and the holocaust.

(BEGIN VIDEO CLIP)

HAGEE: Fishers. And after will I send for many hunters. And they, the hunters, shall hunt them. That would be the Jews.

Then God sent a hunter. A hunter is someone who comes with a gun and he forces you. Hitler was a hunter.

(END VIDEO CLIP)