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American Morning
Clinton Will Suspend Campaign; McCain Challenges Obama to a New Style of Debate; United Airlines in Trouble: Retires Planes and Cuts Jobs; Ed McMahon Faces Foreclosure; Obama Assures Pro-Israel Lobby Group
Aired June 05, 2008 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JOHN ROBERTS, CNN ANCHOR: We begin this morning with breaking news.
It's over. Hillary Clinton suspending her historic bid for the presidency this week. It will be on Saturday, and on that same day in Washington she will endorse Barack Obama and encourage all of her supporters to rally behind him.
Early this morning Clinton released a statement reading in part, "I have said throughout the campaign that I would strongly support Senator Obama if he were the Democratic Party's nominee, and I intend to deliver on that promise."
For the very latest on all of these late breaking developments, here's CNN senior political correspondent Candy Crowley.
CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT: Good morning, John and Kyra. You know, when Hillary Clinton did not bow out of the race on the last night of the primary season, the question to her staff was why not? The answer was, because she wants to pick the time and the place. And now she has.
(BEGIN VIDEOTAPE)
CROWLEY (voice-over): She will end it Saturday, holding the tent on her historic campaign, handing it over to another kind of history. She began the process Wednesday in a speech to Jewish American leaders where not just the words but the verb tense spoke to a turning page.
SEN. HILLARY CLINTON (D-NY), PRESIDENTIAL CANDIDATE: It has been an honor to contest these primaries with him. It is an honor to call him my friend and let me be very clear, I know that Senator Obama will be a good friend to Israel.
CROWLEY: Clinton is expected to suspend her campaign rather than drop out. It means she'll be entitled to keep the delegates she won, and that may be a clue to the biggest question of the week, what does Hillary want?
CLINTON: And I think, too --
AUDIENCE: Hillary, Hillary, Hillary!
CLINTON: Of all those -- AUDIENCE: Hillary, Hillary!
CLINTON: All those wonderful women in their 90s who came out to see me because they were born before women could vote, and they wanted to be part of making history.
CROWLEY: Part of what she wants, friends and adviser say, is to write the final draft of that history. Perhaps keep those delegates until the convention so they can vote for her, not to change the outcome but for the history. She should do it, said one high-profile Clinton supporter, for Chelsea and the rest of us.
Few doubt Clinton would take the vice presidency if offered, and many of her longtime supporters are pushing for just that. But there's a difference between accepting and demanding it.
GOV. ED RENDELL (D), PENNSYLVANIA: You don't bargain with the presidential nominee. Even if you're Hillary Clinton and you have 18 million votes, you don't bargain.
CROWLEY: In fact, she's more conflicted about the idea of being number two than stories might suggest. Inside the campaign, they are certain she'd take it if asked, but it is not on her list. And neither is money to help pay her campaign debt. What she wants, people who have talked to her say, is respect for the history, for her, for her voters.
CLINTON: Thank you to the people across America for welcoming me and my family into your homes and your hearts.
CROWLEY: Her Saturday speech is seen as part of what one adviser called a multi-step process. The thinking is she cannot just give a speech, say nice things about Obama and go away. They believe her supporters, downscaled voters, women, and Latinos will feel abandoned and unwilling to move to Obama's side.
(END VIDEOTAPE)
CROWLEY: In the end it's not what people around her want for Hillary Clinton, it's what she wants, and only a handful of people really know what that is. What everybody knows is that she has the power, both in delegates and the 18 million people who voted for her, to get some of what she wants -- John and Kyra.
ROBERTS: Candy Crowley reporting for us this morning. Candy, thanks.
KYRA PHILLIPS, CNN ANCHOR: Well, Barack Obama begins his general election campaign in Virginia today. He's going to hold a rally in Manassas tonight. And this morning he's in rural southwest which overwhelmingly voted for Hillary Clinton in the February primary, but Obama ended up winning that primary beating Clinton by 29 points.
Meantime, the presumptive Democratic nominee has tapped Caroline Kennedy to help search for a vice president along with Eric Holder, former deputy attorney general under President Bill Clinton, and party insider Jim Johnson.
Now, Senator Obama has already said that Hillary Clinton would be on anyone's short list of vice presidential picks. Now an "AM Extra" looks at some of the other people that are being talked about as possible running mates. Here you go.
In Virginia today, he might consider Senator Jim Webb, a decorated Vietnam War vet. Obama could also tap Governor Kathleen Sebelius of Kansas, or Governor Ed Rendell from Pennsylvania, who was also a big Clinton supporter.
Meanwhile, Barack Obama is considering a challenge this morning from presumptive Republican nominee John McCain.
(BEGIN VIDEO CLIP)
SEN. JOHN MCCAIN (R), PRESUMPTIVE PRES. NOMINEE: As you know, I said earlier that I sent a letter to Senator Obama, and my campaign manager is contacting his campaign manager asking for an invitation and a request for 10 debates, one a week leading up to the Democrat convention.
(END VIDEO CLIP)
PHILLIPS: McCain wants a town hall style matchup calling for "no process questions" from reporters and no spin rooms. Is that possible?
Obama's campaign manager says the debates are a good idea but wants some changes in that format saying that this is one of many items on the candidate's agenda in the coming days.
ROBERTS: Breaking news this morning. New reports that Iran is helping Turkey launch attacks inside Iraq. A Turkish general telling CNN Turk television that the two countries are sharing information on Kurdish rebels in northern Iraq. The Kurdish and workers part of the PKK has been fighting Turkey for self-rule for 25 years. The U.S. has warned that further attacks could destabilize the mostly peaceful Kurdish region.
New this morning, the accused mastermind of the September 11th attacks will be arraigned today in a military court in Guantanamo Bay. Khalid Sheikh Mohammed and four other al-Qaeda suspects were transferred to Gitmo in 2006, after spending about three years in secret CIA prisons.
The men are charged with 2,973 counts of murder, one for each person killed in the September 11th attacks. The Pentagon is seeking the death penalty. Defense attorneys say harsh interrogation methods were used on the suspects.
The Federal Bureau of Investigation giving state and local police a failing grade when it comes to reporting incidents with possible terror suspects. According to "USA Today," the agencies are not contacting the bureau's Terrorist Screening Center when routine computerized background checks on individuals trigger electronic alerts.
Audit shows that this is happening at a rate of up to 10 times a day. The Fed say when a name registers a hit on the government's watch list, it needs to be confirmed a match or deleted from the system.
PHILLIPS: Also new this morning, a verdict in the biggest U.S. criminal case involving Iraqi deaths linked to the war. A military jury found 1st Lt. Andrew Grayson not guilty on all counts in the deaths of 24 civilians in Haditha, Iraq in 2005. He was accused of covering up those killings.
Eight marines were originally charged in the case. Five of those marines had their cases dropped. Two others are still awaiting trial.
And teens may be ignoring warnings about sexual activity according to a new government survey. New data shows that longtime declines in teen sex leveled off between 2001 and 2007. Increases in condom use have also leveled off. Experts say that relaxed attitudes about disease and pregnancy could be to blame.
ROBERTS: It is exactly seven minutes after the hour now. Barack Obama and Jewish voters, what the candidate is doing to make a connection and convince them that he is their candidate.
And United Airlines announces that it's retiring planes and cutting jobs. Why travelers can expect to pay more to fly more crowded aircraft. Ahead.
Coming up on AMERICAN MORNING, a household name.
(BEGIN VIDEO CLIP)
ED MCMAHON, HOST, "THE TONIGHT SHOW": Here's Johnny!
(END VIDEO CLIP)
ROBERTS: Could be without a home. How a Hollywood heavyweight got caught up in the mortgage meltdown.
(BEGIN VIDEO CLIP)
ROBERT PITTS, REAL ESTATE BROKER: Foreclosures happen to everyone.
(END VIDEO CLIP)
ROBERTS: Down and out in Beverly Hills, ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
PHILLIPS: United Airlines says it's going to retire aircraft and cut jobs. Not a good sign.
ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: No. And it's, again, it's a sign of rising oil prices, rising fuel prices for jets.
Here's what United is doing. They're taking 100 planes out of commission, and these are big, big planes. They're calling them their older gas guzzling planes, but they're planes you're very familiar with.
First of all, there's the iconic 737, which is the most used plane in commercial service. They're going to be taking 94 of those out of service and six Boeing 747s. Those are the oldest and least fuel efficient aircraft in the United fleet.
The problem here though, of course, is when you take 100 planes out of an airline like United, which is particularly busy, what does that do for you? What does that leave you with?
Well, we spoke to Rick Seany over at Farecompare.com who tracks airline fares and airline activity very closely. Here's what he said the effect is.
(BEGIN VIDEO CLIP)
RICK SEANY, FARECOMPARE.COM: It's relative to the fuel costs and if fuel stays where it is, we're going to have less service, which actually might be OK for issues with delays and things like that. Prices are going to be up, not double, not triple, but certainly up 20, 30, 40 percent.
(END VIDEO CLIP)
VELSHI: We've already this year had 12 successful increases across the major airlines. About half an hour later I'm going to come to you with the rankings of the airlines for the last month and how they've been doing in terms of delays, on time arrival and cancellations.
But that is one thing. This system has been so tight and there are so many planes, that that's the one consequence of this that could work. It gets so expensive to fly that people who don't absolutely have to, don't.
ROBERTS: And if they take planes out of service, there's fewer of them waiting to take off.
VELSHI: There's fewer of them waiting to take off. So that's the one piece of good news.
By the way, I want you to know, when I wasn't here on Monday --
ROBERTS: Gas prices --
VELSHI: Gas prices didn't go up. They stayed the same.
PHILLIPS: Stephanie Elam had a fun time with that, by the way.
VELSHI: That's right. There you go. Just wanted to point that out. Maybe it's me. ROBERTS: But we love having you here.
VELSHI: Thank you.
ROBERTS: It is a price that we're willing to pay.
VELSHI: You might be. Let's hope our viewers think so.
ROBERTS: Ali, thanks.
VELSHI: OK.
PHILLIPS: Well, a Hollywood icon could have his Beverly Hills mansion taken away. We're going to explain to you why Ed Mcmahon may lose his could home, coming up.
Also extreme weather on the move. Right now, after one round of violent storms plowed through parts of several states, Jacqui Jeras tracking the threat for us.
Good morning, Jacqui.
JACQUI JERAS, AMS METEOROLOGIST: Hey, good morning, Kyra. Good morning, everyone.
Yes, the mid-Atlantic really got hit hard last night. Today it's the Midwest. A brand new tornado watch just issued. Find out where, coming up next with the forecast on AMERICAN MORNING.
(COMMERCIAL BREAK)
JERAS: A major weather threat on the move right now, and take a look at the damage caused by the system that just moved out.
Severe storms picked up cars, peeled off roofs, and plowed through walls in eastern Virginia just outside of Washington. Three people were reported dead in storms across the Midwest and mid- Atlantic states yesterday.
Good morning, everyone. Welcome back to AMERICAN MORNING. I'm meteorologist Jacqui Jeras.
Another rough day in store. Right now, the focus is across parts of the Midwest. Tornado watch just issued for parts of Wisconsin, including you in Milwaukee, northern parts of Illinois, and also into eastern Indiana. There you can see the most recent watch in effect there.
We've got some really nasty weather along the I-90/94 corridor here around Madison, also up towards the portage area and just north of Milwaukee. Watch for that to move in here in the next couple of hours. And then some really wicked weather with a lot of lightning just east of Cedar Rapids, and that is all pushing off to the east as well.
While it's a rough start this morning, this afternoon things are really going to get ugly. We think this is going to kick in late this afternoon and continue late into the night. So plan now what you're going to do when you go to bed and those sirens go off.
Places like Minneapolis, Sioux Falls, Des Moines, Omaha, Kansas City and Wichita at a moderate risk for severe weather and tornadoes. On top of that, a real significant flooding threat.
Look at all the rainfall we're expecting in the next 48 hours. Anywhere between two and four inches where you see that gold and that red. Flood watches have been posted across much of the Midwest. We also have a lot of heat to talk about today, too. That's into the southeast.
Some advisories in effect across the Carolinas. It is getting to be summer, guys. We're talking heat indices over 100 today in Raleigh.
ROBERTS: Wow, wow, wow, that's hot.
PHILLIPS: As she clenches her teeth, did you notice that?
JERAS: I know.
PHILLIPS: That's Jacqui's way of saying go to the beach.
(CROSSTALK)
ROBERTS: Yes. That's why I like severe weather, I guess too.
PHILLIPS: There you go.
ROBERTS: Jacqui, thanks. We'll see you again soon.
John McCain challenging Barack Obama to a series of town hall debates. No moderators, no spin room. Very much like the Lincoln/Douglas debates back in the 1800s.
Coming up --
PHILLIPS: Do you remember that?
ROBERTS: Yes, I was there for the first one. You didn't know that?
Coming up, a look at the tactics behind his proposal.
Coming up on AMERICAN MORNING, Beverly Hills broke.
(BEGIN VIDEO CLIP)
ED MCMAHON, HOST: Here's Johnny!
(END VIDEO CLIP)
ROBERTS: Why the curtain could be falling on a Hollywood star's dream home. (BEGIN VIDEO CLIP)
ROBERT PITTS, REAL ESTATE BROKER: Foreclosures happen to everyone.
(END VIDEO CLIP)
ROBERTS: How Ed McMahon got caught up in the mortgage meltdown. Ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
ROBERTS: Eighteen minutes after the hour. Welcome back to the "Most News in the Morning."
The mortgage meltdown is spreading to Beverly Hills, and a Hollywood icon could lose his multimillion dollar mansion. Our Brooke Anderson has got that story.
(BEGIN VIDEOTAPE)
(BEGIN VIDEO CLIP, "THE TONIGHT SHOW")
ED MCMAHON, HOST, "THE TONIGHT SHOW": Here's Johnny!
(END VIDEO CLIP)
BROOKE ANDERSON, CNN ENTERTAINMENT CORRESPONDENT (voice-over): His famous lead-in to Johnny Carson made Ed McMahon a household name. But fame doesn't make him immune to the mortgage problems plaguing countless Americans.
The 85-year-old entertainer who also hosted "Star Search" is fighting possible foreclosure on his posh Beverly Hills home.
ROBERT PITTS, REAL ESTATE BROKER: Let's face it, he is a normal person. Foreclosures happen to everyone. You just get behind, and you just -- you know, it's a snowball effect.
ANDERSON: McMahon fell more than $643,000 behind on a $4.8 million loan from Countrywide, according to a notice of default filed in March. His publicist wouldn't talk finances but did tell CNN McMahon broke his neck in a fall a year and a half ago and hasn't worked since. That the potential loss of his house is due to "a perfect storm of bad events, bad economy, bad housing market, and bad health."
McMahon has owned the property since the early '90s. Five years ago he won a multimillion lawsuit against his home insurance company for the spread of toxic mold throughout the home. The house has been on and off the market for the past two years. The latest listing price, $6.25 million.
Beverly Hills mortgage broker, Steven Kosen, says McMahon can still save his home. STEVEN KOSEN, THE MORTGAGE HOUSE, INC: The bank is not going to want the foreclosure to happen. They want their money. And if they can reinstate the account and bring the mortgage current, then it will be as it was.
ANDERSON: Through his publicist, McMahon says, "Many good, hardworking Americans are going through the same thing, and my heart goes out to them."
Brooke Anderson, CNN, Los Angeles.
(END VIDEOTAPE)
ROBERTS: And you can hear a lot more about this this evening. Ed McMahon and his wife will be live on "LARRY KING LIVE" tonight 9:00 p.m. Eastern.
And here's an "AM Extra" look at the rash of foreclosures across America. There were 650,000 foreclosures in the first three months of this year according to RealtyTrac. That is up a staggering 112 percent from the same time last year. Foreclosures were up in 46 states and in 90 of the nation's 100 biggest metro areas.
So, Kyra, the problem widespread across this nation.
PHILLIPS: Barack Obama is trying to smooth things over with Jewish voters. He said all the right things yesterday, but do they believe him? We're going to ask Alan Dershowitz, coming up.
And John McCain with a challenge to Barack Obama. He says the American people deserve a new style debate. What is there more to do than just that? We're going to tell you, coming up.
ROBERTS: Coming up on AMERICAN MORNING, clean break. Worried about the end of cheap oil? Meet the survivalists who are preparing for the worst.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: If you're not living on the edge, you're taking up too much space.
(END VIDEO CLIP)
ROBERTS: Vegetable gardens, a solar car, solar light.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Call me crazy, but I'm crazy like a fox. This household makes half its own energy.
(END VIDEO CLIP)
ROBERTS: Paranoid or prepared. You decide, ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
PHILLIPS: Barack Obama says that Hamas must recognize Israel and that Iran must not get nuclear weapons. Those were just two of the issues that presumptive Democratic nominee addressed before a powerful pro-Israel lobbying group. So did his message resonate with Jewish voters convincing them that he is their candidate?
Alan Dershowitz, Harvard law professor, and author of "Is There a Right to Remain Silent?" joins me now live from Boston. Alan, great to see you. What did you think of his speech?
ALAN DERSHOWITZ, HARVARD LAW SCHOOL PROFESSOR: I thought it was a home run. It went a very, very long way toward assuring Jewish voters that he is good for America, he's good for the world, and he's good for Israel. He said all the right things.
There's still a question in the minds of some. I got lots of e- mails yesterday asking the following question. If he's so good on Israel, how come so many people who hate America and hate Israel and who are extremists still support him?
And that's one of the questions that I think he still has to address, his past associations, his current associations, but he went a long way toward assuring Jewish voters yesterday.
PHILLIPS: And what's interesting is you've been a Clinton supporter. After this speech yesterday, have you changed your mind? Would you back Obama?
DERSHOWITZ: Yes, I'm going to back Obama. I thought that he did a terrific job. The level of my support for Obama will depend on how he answers certain questions.
He took another giant step, I think, yesterday very subtle one, when Jimmy Carter endorsed Obama, Obama didn't give him a photo-op and didn't put his arm around him. He silently accepted the endorsement without any public acknowledgement of it. He didn't, for example, counter endorse Carter.
Carter is a complete anathema to the Jewish community and he is radioactive. And I think he's an anathema to many Americans who don't want to see a repeat of the Carter foreign policy. So I think by his silence he assured Jewish voters in this regard as well.
PHILLIPS: And, of course, this centers around Hamas, and what has been said not only from Jimmy Carter, but also Barack Obama definitely making clear where he stands with Hamas. What did he say and did that resonate with the Jewish voters in that crowd last night?
DERSHOWITZ: He clarified what he meant about negotiating with America and Israel's enemies. He said he would not sit down and negotiate with the terrorist groups so long as it didn't recognize Israel and continued to support terrorism. That's precisely what I think most Americans wanted to hear.
What he did yesterday is he basically allowed Jewish Americans, like all-Americans, to say, look, we're going to vote for a candidate based on what we think he is good for America, whether he's good for the world, whether he's good for a range of issues.
He basically took Israel kind of off the table and he said, look, I'm good for Israel, McCain is good for Israel, Hillary Clinton would have been good for Israel. All-American candidates support Israel. Now you can feel free to vote for me based on my economic policy, my policy on civil liberties and human rights.
That's very important to the Jewish community because the Jewish community feels very strongly about a wide range of issues that are important to America.
PHILLIPS: And you mentioned all the candidates. Let's talk about Hillary Clinton for a minute. She's always been very popular among Jewish voters, and she actually stepped up speaking to the group showing her support for Obama. Let's take a listen.
(BEGIN VIDEO CLIP)
SEN. HILLARY CLINTON (D-NY), PRESIDENTIAL CANDIDATE: It has been an honor to contest these primaries with him. It is an honor to call him my friend and let me be very clear, I know that Senator Obama will be a good friend to Israel.
(END VIDEO CLIP)
PHILLIPS: What do you make of that?
DERSHOWITZ: Very important. She gave her voters permission to embrace Obama, and I think many people will take that very seriously because everybody knows Hillary Clinton is a good friend of Israel, good on foreign policy, good on a range of issues important to the Jewish community, and she virtually gave her certification to Obama on this very important issue.
But I want to emphasize that Jews, like other Americans, vote on a wide range of issues. Israel is very important to us, but so is a strong American foreign policy and a strong domestic policy. And I think Barack Obama is moving in the right direction.
He still has some fences to mend because of some of his old associations which have raised suspicion. I think he's taking steps. I think he has to take some more steps to allay fear that a victory for Obama is also a victory for some of America's worst enemies and some of Israel's worst enemies. That's the next step he has to take.
PHILLIPS: Alan Dershowitz, great talking to you this morning.
DERSHOWITZ: Thank you.
PHILLIPS: John?
ROBERTS: It is 28 minutes after the hour, and here's what's happening right now. Breaking news, Hillary Clinton has announced that she will officially suspend her campaign for the presidency this weekend. In a letter released this morning, Clinton says she will endorse Barack Obama and urge her supporters to do the same at an event on Saturday. The news comes as New York's top Democrats say they plan to endorse Obama today and tomorrow.
Some Democrats say that they would like to see Hillary Clinton as Barack Obama's vice presidential running mate, but not former President Jimmy Carter. He's telling London's "Guardian" newspaper that it would be "the worst mistake that could be made." He thinks that voters would be turned off by combining the negative aspects of both candidates.
Secretary of State Condoleezza Rice describes Senator Obama's historic victory as "an extraordinary expression of inclusiveness," and she praised the campaigns of all three major candidates.
(BEGIN VIDEO CLIP)
CONDOLEEZZA RICE, SECRETARY OF STATE: I think that what we're seeing is an extraordinary expression of the fact that we, the people, is beginning to mean all of us, and I congratulate both Senator Obama and Senator McCain on their respective campaigns, and Senator Clinton on hers as well. And I look forward to viewing it all from the sidelines as a voter.
(END VIDEO CLIP)
JOHN ROBERTS, CNN ANCHOR: White House Press Secretary Dana Perino also offered congratulations on behalf of the administration saying that it shows how far America has come. Rice is the first African-American female Secretary of State in history.
John McCain challenges Barack Obama. He is proposing that they share the stage at Ten Town Hall-style debates this summer. CNN's Joe Johns takes a look at the tactics behind McCain's move.
(BEGIN VIDEOTAPE)
JOE JOHNS, CNN CORRESPONDENT (voice-over): The art of war. For John McCain, rule one -- choose the field of battle wisely. He can be stiff, even awkward in front of a teleprompter as he was Tuesday. But in Wednesday's town hall, a more intimate setting, he's loose and relaxed. And that's the field of battle where he wants to meet Barack Obama.
SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: The essence of democracy in America in many respects is the town hall meeting.
JOHNS: Rule two, defend your territory until you can advance. McCain has been working hard in states where he's already doing pretty well, like here in Louisiana. He's likely to camp out later this year along the Appalachian trail -- West Virginia, Kentucky, Southern Ohio. Rule three -- focus on the opposition's weak points. The McCain campaign thinks Obama's biggest vulnerabilities are his inexperience and youth.
MCCAIN: I have a few years on my opponent, so I'm surprised that a young man has bought in to so many failed ideas.
JOHNS: Failed ideas, he says, on Iraq, taxes, and trades to name a few which would add up to what McCain would argue is the wrong kind of change. And Obama, his preferred battlefield is the large meeting hall with a huge crowd. Part revival, part political rally, televised during primetime. This is where he gets his power.
He will need to defend states with upper scale, better educated voters and those with large African-American populations. Remember those big wins in South Carolina and Mississippi.
With those secure, he'll be free to advance to states with lower income white voters and Hispanics. Message -- focusing on the opposition's weak points. The Obama campaign sees Republican President Bush as one of Republican John McCain's biggest weaknesses. And that's why you hear Obama return again and again to linking McCain to the president.
SEN. BARACK OBAMA (D-IL), PRESIDENTIAL CANDIDATE: It's not change when John McCain decided to stand with George Bush 95 percent of the time as he did in the Senate last year.
JOHNS: Which brings us to the most famous rule of all, know your enemies. And with the field of fire finally clear, these two candidates will start getting to know each other very well. Joe Johns, CNN, Baton Rouge.
(END VIDEOTAPE)
ROBERTS: The money wars. Which candidate has the financial edge? Right now, it's Barack Obama. Here is your "A.M. Extra." At last report, Obama had $46.5 million on hand. John McCain had just $21.8 million.
Back in April, Obama pulled in $31 million. That compares to $18 million for McCain, which by the way was a record for him. In all, Obama has raised $265 million. That compares to McCain's $93 million. You choke when you read that figure. That's incredible. Wow.
ALINA CHO, CNN CORRESPONDENT: Mind boggling.
KYRA PHILLIPS, CNN ANCHOR: Alina Cho, good morning.
CHO: Hey, there. Good morning, guys. Lots going on. Good morning, everybody. And new this morning, a strong aftershock hit China overnight. And now there are fresh concerns that a dam created by that massive earthquake last month could burst.
Engineers are now trying to relieve pressure on the dam. They're also hoping the water will start draining today from one of the so- called quake lakes. 35 of them were formed by the May 12th earthquake. At least 1 million people are in danger if the dam gives way. Democrats want to spend $20 billion to make schools greener. The House passed the bill yesterday saying it would save school districts billions of dollars in energy costs and prevent environmental illnesses like asthma. The White House is threatening a veto saying the federal government shouldn't interfere with education matters that are usually handled by state and local government.
And 36 inches of silver, 115 years of tradition, john. We're talking about the Stanley Cup, hockey's biggest honor, but you know that. And this morning, it belongs to one champion. The Detroit Red Wings won the national hockey leagues. Holy Grail last night defeating the Pittsburgh Penguins or as I like to call them the Pittsburgh Pirates, 3-2, in a thrilling -- wrong sport --down to the wire game six.
The Red Wings won the best of seven series 4-2. It's Detroit's 11th Stanley Cup. That's the most ever by an American team. How do you skate with that big trophy? Anyway, you know, I know you didn't watch the game last night, because you were busy working, but Kyra and I were busy throwing a couple of bat balls --
PHILLIPS: Back with Ali. Yes.
(CROSSTALK)
CHO: We were up all night watching the game.
PHILLIPS: That's right, watching the hockey.
ROBERTS: You know, they had the Stanley Cup here at CNN a couple of weeks --
(CROSSTALK)
PHILLIPS: Of course, he doesn't even listen to us.
CHO: Yes, he doesn't. Don't pay attention.
ROBERTS: They had the cup here a couple of weeks ago.
PHILLIPS: Did you kiss it? Because that's what you have to do. It brings good luck. You're a Canadian, you know that.
ROBERTS: I didn't kiss the cup.
PHILLIPS: You have to kiss the cup.
ROBERTS: I held the cup.
(CROSSTALK)
PHILLIPS: It's like kissing the Blarney Stone. If you don't kiss the Stanley Cup, you're just jinxed for life.
ROBERTS: There you go. I might as well hang it up now.
PHILLIPS: You are a good hockey player, though, right?
CHO: You are a good hockey player, right?
ROBERTS: I was a hockey player. I don't know if I was good.
CHO: I played --
PHILLIPS: Broom ball.
ROBERTS: In Canada you're born with skates on so.
CHO: I'm a tennis girl, anyway.
PHILLIPS: Everybody knows what we love to do.
CHO: That's right.
PHILLIPS: How about this? A scary sight in the distance. Take a look.
I think we'd all be skating away quickly from this. A tornado caught on tape and picking up steam. We're tracking a major weather threat on the move right now.
ROBERTS: Coming up on AMERICAN MORNING, energy extreme.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: If you're not living on the edge, you're taking up too much space.
(END VIDEO CLIP)
ROBERTS: Meet survivalists learning to live without oil.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Call me crazy, but I'm crazy like a fox. This house healed makes half of its own energy.
(END VIDEO CLIP)
ROBERTS: From gardens to solar homes to solar cars, living life off the grid, ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
PHILLIPS: And welcome back to AMERICAN MORNING. Another record at the pump this morning. The average price for a gallon of self- serve regular, $3.90 according to AAA. That's the 28th record in the last 29 days. 37 cents higher than last month. 84 cents higher than last year. But the price of oil is lower this morning. Below $122 a barrel in overseas trading. This comes after report that demand for gasoline in the U.S. is falling.
ROBERTS: I would expect it's going to continue to fall too with the price that high.
PHILLIPS: You know what, I can't expect anything about gas prices and oil. Remember it's all speculation and how do you -- well, let them with our story. We'll bring Ali Velshi into that.
All right, as some of Americans try to cut their gas consumption now to save money, a few are actually trying to stop using oil and gas all together.
ROBERTS: Our Deborah Feyerick caught up with an energy survivalist and has his story. Take a look.
DEBORAH FEYERICK, CNN CORRESPONDENT: John, Kyra -- with oil prices soaring, a small but growing number of Americans are bracing for a global meltdown. They say they are ready and they plan to ride it out comfortably amidst the chaos.
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FEYERICK (voice-over): Iver Lofving is convinced the world is running out of oil. He spent the last ten years getting ready for that day. A mainstream survivalist chopping his own wood, installing solar panels, growing vegetables, even driving a solar-powered car. All but geared to becoming self-sufficient.
IVER LOFVING, PEAK OIL SURVIVALIST: Call me crazy, but I'm crazy like a fox. This household makes half of its own energy. I mean, you know, half -- you know, two-thirds of the hot water. Half the heat right there, small part of the electricity, half the gasoline.
FEYERICK: Lofving is a high school teacher who lives in Skowhegan, Maine, roughly two hours north of Portland. He believes the world driven by cheap oil is coming to an end.
How does peak oil play into the changes you're making in your life?
LOFVING: Well, peak oil has everything to do with it.
FEYERICK: Peak oil is deployed when global oil production peaks then goes down. The remaining oil supply is limited and will be harder to get at. And that means fewer barrels a day. Some oil experts say that day is here. Others predict it's 20 to 30 years away.
But as gas prices rise, Web sites like peakoil.com and survival blog are getting more and more visitors, talking about the end of cheap oil and the possible threat of political and economic instability around the world. And peak oil groups like Lofving have seen a spike in members.
LOFVING: I think that things have the potential to get very, very bad if we don't do anything. However, I really do.
FEYERICK: Unlike some survivalists, Lofving has not started raising chickens or stockpiling a year's worth of food and ammunition. But he is thinking of a bigger garden and maybe a small boat, just in case.
(END VIDEOTAPE)
FEYERICK: There's disagreement as to whether we've hit peak oil. Roughly 85 million barrels are currently pumped every day. Some say the crisis could be averted by developing alternative fuels. As for Iver Lofving, he says he's on his way to becoming self-sufficient and looks forward to going back to a simpler time.
John?
Kyra?
ROBERTS: Deb Feyerick for us this morning.
PHILLIPS: From strollers to car seats, a major baby goods retailer accused of conspiring with manufacturers to fix the prices. Were new parents victimized? We're going to take a look
And caught on tape, a tornado on the tear. Extreme weather is on the move this morning. Jacqui Jeras tracking it all for us.
Hey, Jacqui.
JACQUI JERAS, CNN METEOROLOGIST: Hey, guys. Incredible pictures there, and more just like that very likely to be shown on AMERICAN MORNING tomorrow. Today is going to be another big, big severe weather day. Find out where the worst of it is going to hit, coming up on AMERICAN MORNING.
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JERAS: Extreme weather caught on tape. A photographer shot this funnel cloud tearing across the countryside in Tazewell County, Illinois. No injuries were reported. It was one of several tornadoes that were spotted in the area as severe storms raced across the Midwest.
And more of those storms are out there at this hour. Welcome back to AMERICAN MORNING.
A tornado watch in effect right now from Sheboygan, Wisconsin, through Milwaukee, down through northern parts of Illinois and into southeastern Iowa. This will be ongoing throughout the morning hours. Some really intense thunderstorms just outside of the Madison area. Severe thunderstorm warning for you in Dane County. Expect to see wind gusts around 60 miles per hour here. And look at all those lightning strikes this morning.
Heavy downpour is coming down about an inch an hour. Use a lot of caution on that morning commute. Also just issued a severe thunderstorm watch, which includes parts of Colorado, into Kansas and also Nebraska. The big concern here will be hail-making type of storms. Now the big weather event really is going to take place late tonight. Right now, there's what we call a cap in the atmosphere. So it's like a warm layer of air that's a little bit higher up and it prevents those thunderstorms from developing and being able to breakthrough and get very strong and severe. So until we break that cap, things really won't get kicking, we don't think, until late this afternoon and later on this tonight.
Kyra and John, it's going to be another really big day of storms in the plains.
ROBERTS: And we know that you'll be keeping a close eye on it for us today. Jacqui Jeras, thanks.
A major baby goods retailer accused of conspiring to fix prices. So have you been paying too much for things like high-end strollers? Next AMERICAN MORNING's legal analyst Sunny Hostin takes a look at the case.
And the alleged 9/11 mastermind and four others accused of involvement in the attacks will be arraigned at GITMO this morning. We're going to have a live report.
ROBERTS: And check out the ultimate economy car. Find out just how far you could go on one tank of gas.
PHILLIPS: Coming up on AMERICAN MORNING -- throwing punches.
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OBAMA: We don't need to study, we need action.
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PHILLIPS: Two heavyweights with a history of mixing it up.
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MCCAIN: I think it was a straight talk.
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PHILLIPS: Ed Henry looks back at the early rounds of this main event, ahead on AMERICAN MORNING.
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ROBERTS: It's 49 minutes after the hour. The largest seller of baby goods is accused of conspiring with some manufacturers to fix prices and crush Internet competitors. Babies "R" Us faces two antitrust lawsuits. So have new parents been paying too much for things like strollers and highchairs.
AMERICAN MORNING legal analyst Sunny Hostin joins us now. As a parent, you're claiming they're being ripped off.
SUNNY HOSTIN, CNN LEGAL ANALYST: They sure are. ROBERTS: What are they saying Babies "R" Us doing?
HOSTIN: Well, this is really the battle of the baby retailers, John. We've got babyage.com and babyclub.com. And they're saying that Babies "R" Us forced and coerced manufacturers to everyone to sell everything at the same price.
And so that means, without the legalese, the bottom line is these other manufacturers or rather these other retailers are not allowed to sell lower. So if you have a $50 stroller, everyone has to sell it at $50 instead of selling it let's say at $49.99.
ROBERTS: So no advantage to buying off the Internet basically.
HOSTIN: No advantage and they're really upset about it. And the other thing is consumers are also suing the same folks, same exact theory -- basically price fixing.
ROBERTS: What's Babies "R" Us saying about it?
HOSTIN: Babies "R" Us -- we tried to get a statement from Babies "R" Us and from Toys "R" Us, the parent company of Babies "R" Us, and they're not commenting on pending litigation. We also reached out to the plaintiffs in this case. No one is commenting on it, but the defendants are really vigorously, vigorously defending this case, and it's something that we're going to be following.
ROBERTS: So this is an antitrust case. And usually consumers are not allowed to bring antitrust cases. Why are they in this particular instance.
HOSTIN: That's right. Well, the judge in this case said that with this type of case that consumers are allowed to bring this case against directly manufacturers. And so it really is precedent-setting in a sense.
ROBERTS: Then why did they make that decision?
HOSTIN: You know, when you look at the facts of this case, the judge felt that it was important enough for consumers to be allowed to take their case against the manufacturers.
ROBERTS: We'll see if it applies to other Internet cases as well. I'm sure people are going to start looking around.
HOSTIN: People may. And this could have affected consumers -- that consumers paid more than they should have.
ROBERTS: Yes, absolutely. All right, Sunny, interesting case. Next week, by the way, we're going to be adding something new to help our legal viewers here on AMERICAN MORNING.
Our legal analyst, Sunny Hostin, is going to start taking your e- mails every Friday on various legal topics like Sanjay Gupta's "Mail Bag." It's going to be "Sunny's Law." First up, homeowners, if you've had a nightmare experience with a contractor, tell Sunny your story. Log on to our Web site, cnn.com/americanmorning, and look for the little link that says "Sunny's Law" or email, Sunny, directly at sunnyslaw@cnn.com. Looking forward to that.
HOSTIN: Yes. Send me your questions. Send me your questions. I'm interested in providing some legal information to our views.
ROBERTS: Are you getting some good question so far?
HOSTIN: So far, so far so good.
ROBERTS: Excellent. Great. Thanks, Sunny.
HOSTIN: Thanks.
ROBERTS: Kyra?
PHILLIPS: What if we need an attorney? Can we hire you?
HOSTIN: Well, no, you can't hire me. You can't hire me but certainly -- I'm only providing legal information and you should hire an attorney when you think you have a case.
PHILLIPS: OK. So humble.
All right, young or old, male or female, warrior or diplomat -- lots of choices and an all-star team in charge of advising Barack Obama in picking the perfect running mate. The short list ahead.
Breaking news. Democrats from Hillary Clinton's home state back Obama as she picks a time and place to bow out.
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SEN. HILLARY CLINTON (D-NY), PRESIDENTIAL CANDIDATE: Thank you all very, very much.
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PHILLIPS: Plus, wingless flight.
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UNIDENTIFIED MALE: Why would you make a car that's square and boxy and like a piece of furniture?
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PHILLIPS: Three wheels and 230 miles to the gallon. See the car of the future today.
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PHILLIPS: Coming up on AMERICAN MORNING -- throwing punches. (BEGIN VIDEO CLIP)
OBAMA: We don't need to study, we need action.
(END VIDEO CLIP)
PHILLIPS: Two heavyweights with a history of mixing it up.
(BEGIN VIDEO CLIP)
MCCAIN: I think it was a straight talk.
(END VIDEO CLIP)
PHILLIPS: Ed Henry looks back at the early rounds of this main event, ahead on AMERICAN MORNING.
Topping the CNN political ticker this Thursday morning, Former President Jimmy Carter says an Obama-Clinton dream ticket would be, quote, "The worst mistake that could be made." Carter tells London Newspaper that the guardian, that both of their vulnerabilities could overshadow the ticket.
Now, Michelle Obama will be a guest host on ABC's "The View." The show's executive producer said she was originally invited as a guest, but she requested to guest host like Cindy McCain did back in April. She'll appear on that show June 18th.
ROBERTS: Barack Obama begins his run toward November today in Virginia. Two of the states most prominent Democrats will be there with him. Governor Tim Kaine and Former Governor Marker Warner. Obama won the primary in February, but his first stop today will be in the rural southwest in Bristol, which he lost to Hillary Clinton by 33 points.
Meantime, Obama has tapped Caroline Kennedy to help select the vice president. Eric holder, Former Deputy Attorney General under Bill Clinton and a party insider, Jim Johnson, round out the running mate selection team.
As for Hillary Clinton, Obama says that she would be on anyone's vice presidential short list. And for more up to the minute political news, just head to cnn.com/ticker.
PHILLIPS: Barack Obama's success is a defining moment in American history. The first African-American to lead a major party's run for the White House. CNN's special correspondent Frank Sesno looks at the powerful emotions running through the African-American community right now.
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FRANK SESNO, CNN SPECIAL CORRESPONDENT: Barack Obama knows he defies history and expectations.
OBAMA: Nobody thought a 46-year-old black guy named Barack Obama was going to be the Democratic nominee.
SESNO: Race has always been the wildcard in American politics. Barack Obama reshuffles the deck. For African-Americans who lived through the civil rights struggles of Rosa Parks, Selma, Alabama, Martin Luther King. For most who remember this, Barack Obama is a symbol of struggle and success, progress and change. Few at the back of the bus would have predicted they'd ever see this.
REP. JOHN LEWIS (D) GEORGIA: Just think a few short years ago, blacks and whites could not board a greyhound bus, a trail way bus in Washington, D.C., and travel together through the Deep South without the possibility of being arrested, jailed, or beaten or even facing death.
SESNO: For millions of younger Americans, black and white, it's different because in school, at work, on TV, they have experienced a different America. Divided still, but genuinely diverse. Their icons may be Jordan or Woods, Powell or Angelou.
LEWSI: For younger people, white and black, this is now. This is here and now. This is real.
SESNO: Many of these young people see Obama as generation next, multiethnic, educated, global, a politician who happens to be black. More about the future than the past. But the past is our legacy. 145 years since the emancipation proclamation. But in a single lifetime, the military integrated and schools desegregated.
Martin Luther King marched and gunned down. Riots in the streets and breakthroughs in the ranks.
OBAMA: This was the moment, this was the time.
SESNO: However the politics play out, we've never been here before.
OBAMA: God bless the United States of America.
SESNO: Frank Sesno, CNN, Washington.
(END VIDEOTAPE)
ROBERTS: It is one minute now to the top of the hour. Now to breaking news. Hillary Clinton's campaign to become the first female president is all but over.
In a letter released early this morning, Clinton says she will suspend her campaign on Saturday. And at that event to take place in Washington, she will thank the millions of people who voted for her and express her support for Barack Obama and urge party unity.
By suspending her campaign, Clinton is entitled to keep hold of her delegates -- suspending rather than quitting. And news of her decision comes just hours after she praised Obama in a speech to Jewish-American leaders.
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SEN. HILLARY CLINTON (D-NY), PRESIDENTIAL CANDIDATE: It has been an honor to contest these primaries with him. It is an honor to call him my friend and let me be very clear. I know that Senator Obama will be a good friend to Israel.
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ROBERTS: And also new this morning, we are learning that New York's top Democrats plan to endorse Barack Obama today and tomorrow.
CNN's Suzanne Malveaux joins us now. She's got more on this.
And if you look at the newspapers, obviously out of New York today, it's all the big news here, "New York Daily News" -- OK, I'll quit.
What is "The New York Post" --
SUZANNE MALVEAUX, CNN POLITICAL CORRESPONDENT: This is kicking and screaming. I don't know if that's overstated slightly. Kicking and screaming that she ends her quest with the presidency.
