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American Morning

Rare Attack on an Oil Field; Taliban Cleared out from Villages Outside of Kandahar; Floodwaters Now Surging Down the Mississippi River; Obama Campaign Apologizing to the Muslim Community; Michelle Obama's New Team; Two Bear Stearns Executives Arrested

Aired June 19, 2008 - 08:00   ET

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


JIM LACAMP, ENERGY COMMENTATOR: Yes, I do. And I don't know what level we're going to be lowering it from. We could be seeing $4, $5, $6 a gallon at the pump by the time we get to there and get that oil. But part of this will be a perception.
If we really open up Alaska, Colorado, (INAUDIBLE) shale and our offshore to drilling and get more aggressive with our energy policies, it may have a psychological impact on the price of oil because a lot of traders are saying that we're too restrictive on our energy policies and that can lower prices right away.

ROBERTS: All right. Some things to think about. Jim Lacamp for us this morning from Dallas. Jim, good to see you. Thanks.

LACAMP: Always a pleasure, John.

KIRAN CHETRY, CNN ANCHOR: It's now the top of the hour. Here are the top stories we're following right now. A rare attack on an oil field. It happened off the coast of Nigeria. Militants say they tried to take out an offshore rig, failed to get into the computerized control room. Shell has now shut that rig down temporarily, cutting production now by 200,000 barrels a day.

Also, the Taliban cleared out from villages outside of Kandahar, Afghanistan. A local governor says forces killed or wounded hundreds of insurgents just a day after Afghan and NATO forces launched one of the biggest battles there in years.

A ceasefire between Israel and Hamas seems to be holding a few hours after it took effect. Israel partially lifted an economic blockade on Gaza that allowed trucks to bring in fuel. And if this truce continues for a week without any problems, Israel says it will relax that blockade even more.

Also, we have breaking news this morning when it comes to flooding. Floodwaters now surging down the Mississippi River. This is new video to us out of Winfield, Missouri. Rivers upstream are expected to crest there today and the rising floodwaters proved to be too much for a number of levees. So far, more than 20 have failed and dozens are at risk of overflowing.

President Bush and John McCain will both tour Iowa today, but not together. Also, if you would like to help the people in the Midwest and Impact Your World, you can head to cnn.com/impact to find the aid agencies that are helping them.

ROBERTS: Turning now to the race for the White House, Senator Barack Obama says if Osama bin Laden is captured under his watch, the al Qaeda leader will be brought to justice in a way that won't allow him to be a martyr.

Obama didn't discuss what approach that he would take, but called the Nuremberg trials for the prosecution of Nazi leaders an inspiration. The comments come one day after the McCain campaign criticized Obama for having a, quote, "September 10th mind set for supporting detainees' rights to trial."

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R), PRESUMPTIVE PRESIDENTIAL NOMINEE: He supports that decision to give those -- I understand Osama Bin Laden habeas corpus rights. He doesn't have an understanding of the nature of the threat.

(END VIDEO CLIP)

ROBERTS: Yesterday, former New York Mayor Rudy Giuliani said it was startling that Obama would grant Bin Laden a right to trial, but Obama's advisers say it's unlikely Bin Laden would make to Guantanamo Bay alive.

CHETRY: Also this morning, the Obama campaign apologizing to the Muslim community after volunteers at a rally in Detroit this week refused to let two Muslim women, who are wearing their traditional head scarves sit behind Barack Obama and directly in front of TV cameras. The campaign says what happened was offensive and not reflective of their candidate.

Let's bring in CNN senior political correspondent Candy Crowley from Washington.

The campaign saying, you know what, it was the fault of some volunteers, but there likely is something more political at work here.

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT: Well, sure and it really is kind of indicative of the cross currents of what's really an historic run for the presidency. And so here, you have Barack Obama with a name that a lot of people assume is Muslim, with Internet e- mails saying he's a Muslim.

So, he's out there having to deny it in a way that then ends up offending some in the Muslim community, saying well, he should at least attack what they call Islamaphobia. You know, saying, what would be wrong with being a Muslim? So, he's kind of caught in this cross current and it's a political cross current which makes it even more problematic.

The question, of course, is how the volunteers got this idea, whether it was, you know, their idea, but it was two separate incidences with two separate people who were doing advance work to the Obama campaign. Nonetheless, those that were involved, you know, say they accept the apology and they've moved on. It's a blip. But it just kind of shows you how really different and how very sensitive this campaign year has become.

CHETRY: It's also interesting because this is not the first campaign this has happened to him. Just how mindful they all are of what is in the background and then how the opposition can later use that, perhaps in campaign commercials to maybe not say anything outright, but to insinuate.

CROWLEY: Absolutely. And that's -- you know, and that's the problem. But the Obama camp went out of its way to send us pictures, saying, look, here he is with Muslim people in traditional dresses. This is not part of our policy.

But you're right, those pictures -- and here we are with all those cameras that everybody has. So, you are constantly on guard not just about what you say, but what frame you're in.

CHETRY: That's right. Barack Obama today, Candy, on a unity tour with the Democratic Party. Who's he meeting with?

CROWLEY: Absolutely. I mean, this is sort of the greatest hits from the core of the Democratic Party. He is meeting with union officials. He is meeting with female lawmakers and he is meeting with African- American lawmakers. So, a touch base. As you know, Barack Obama's main charge -- at least two main charges trying to beef and bring together the party between now and the end of August when they hold the Democratic convention.

So, he is not just on an economic tour, but on a party-building tour. And next week, he and Hillary Clinton showing up together at a fundraiser that's designed to bring her fundraisers and his fundraisers into one group. So, it is an ongoing process, but very actively he is pursuing that unity.

CHETRY: All right. Candy, good to see you. Thanks.

CROWLEY: Thanks.

ROBERTS: Six minutes after the hour. Cindy McCain is in Vietnam this morning and CNN's John King is right there alongside her. He traveled all the way to Hanoi for a one-on-one interview and asked Mrs. McCain about the time that she made comments regarding Michelle Obama's patriotism.

(BEGIN VIDEO CLIP)

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: You did step forward at one point in the campaign when Mrs. Obama had said for the first time she was proud of her country. You did step forward and said, well, I've always been proud of my country. You saw a reason to say that, maybe some political opening? MRS. CINDY MCCAIN, SEN. JOHN MCCAIN'S WIFE: No, it was not a political thing. There was nothing planned. I'm just -- I'm an emotional woman when it comes to service to our country. I watched many people's children leave and go serve. This is something that is the fiber of the McCain Family. It was nothing more than me just saying -- look, I believe in this country so strongly.

I think she is a fine woman. She's a good mother and, you know, we both are in an interesting line of work right now.

(END VIDEO CLIP)

ROBERTS: Mrs. McCain also talks about what led her to finally release information on her income taxes. She says the steady pressure from the Democrats had nothing to do with it.

CHETRY: And Michelle Obama was on "The View" and she's making the rounds again her plan to correct the rumors and call out some of the people who are starting one.

ROBERTS: And he is back -- Ross Perot getting into the political debate again, wants to get under the hood and fix it, charts and all. He's not a candidate this time, but he does have a warning for the nominees.

CHETRY: Men being trained to kill American soldiers in Iraq on a propaganda video that was obtained by CNN. The military says it's proof that they're being armed and trained by Iran. You're watching the "Most News in the Morning."

(COMMERCIAL BREAK)

ROBERTS: 10 minutes after the hour. Welcome back to the "Most News in the Morning." Happening now in Afghanistan. NATO and Afghan forces killed 56 Taliban fighters in battles in southern Afghanistan. According to Afghan President Hamid Karzai, they pushed the Taliban out of villages near Kandahar.

Nic Robertson is just on the ground in Kabul in the last couple of hours and he joins us now.

Nic, was this operation a complete success or did they just have some success in moving those fighters back?

NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: I think it depends on how you define a complete success. It seems that the Taliban have fought in the way that they often fight when they mask. And there were reports of hundreds of Taliban in this district just 10 miles outside of Kandahar's strategic and important economic farming area, it's called Aran Gadab (ph).

When the Taliban mask as they had or reportedly had there in their hundreds, they say they will stand and fight. NATO Afghan forces say they killed 50 of the Taliban, but what that often means is that the other Taliban have fled. So is the Taliban problem there taken care of? No, because many of them have run away to fight another day and that is symptomatic of the Taliban tactics. They will stand and fight for a while and then run away. So the problem there still exists. The Taliban is still on the ground, still able to mask somewhere else for further fight.

John?

ROBERTS: All right. Well, at least for the time being there, Nic, is seems that they have managed to crawl some of the violence there and take a little bit of the pressure off. Nic Robertson who is in Kabul, Afghanistan this morning and we will be reporting throughout the day here on CNN. So make sure that you stick around for that.

CHETRY: Well, we probably heard in the last month more possible and potential solutions to our oil problem that we have in past 40 years.

ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: You are absolutely right. And that's kind of interesting because that's what it's taken. It's taken $4 of oil or $3.50 per galloon of gasoline. Over $100 per barrel of oil. And one of the newest things we are hearing about now is President Bush's suggestion that we engage in an effort to get shale oil. Now shale oil is an interesting thing.

Shale oil is basically oil that you get from stone. There are particular deposits of shale in the western United States in the Green River base which is in Wyoming, Utah and Colorado. And there is lots of oil under there. Possibly over a trillion barrels of oil, but there's a lot of oil all over the place that you can't get at.

The oil that you could conceivably recover from that area is 800 billion barrels which is much bigger than all the oil in Saudi Arabia at the moment.

CHETRY: There's got to be a catch here. They would have done this before?

VELSHI: Very expensive. Very expensive to get to. Once you got the infrastructure in there, it's still one of the most expensive forms of oil to get. Take a look at this compared to just getting oil right out of the ground. About $20 a barrel if you get it. If it's accessible on land, $20 to $60 in shallow waters. $60 in deep water. Shell mining is $30 to $50. That's still puts it at the high end.

But again, the infrastructure to get there is very, very expensive to start with. Oil sands, one of the most expensive, $60 now. Now, oils sand are where there is oil in sand in Northern Alberta. I'm going there next week by the way at the oil sands pits. There are -- the thing about getting oil from anything other than plain oil is it's very energy-intensive as well. So you use a lot of energy to get energy.

Want to talk more about this? I know you do. Give me a call later on. 11:00 Eastern. I'm doing that radio show.

ROBERTS: It's not about the gas. VELSHI: We have changed the name. It is now "ISSUE #1" on the radio. We tried it on way, Kiran, it was called, it's not about the gas and we got a lot of jokes about that. The number is 1-877-266-4189. Our good man Brian Bell is going to stick that on our AMERICAN MORNING page so that you can call it.

CHETRY: Plus, isn't it about the gas.

VELSHI: It's about so much more than the gas, Kiran.

ROBERTS: What are the environmental impacts going after the shale?

VELSHI: They are big. I mean, it's strip mining, right? It's a surface mining so you've got to get an -- there are lots of concerns. There is no free lunch on this one, but we might as well discuss every option out there right now because we're going to have to find a solution.

ROBERTS: As you do, everyday. And we appreciate it.

VELSHI: All right.

ROBERTS: Thanks so much, Ali.

CHETRY: Well, it was a race to save you money at the supermarket. Our three beltway correspondents hit the isles looking to find the best deals but this is what happened after the race that caught the attention of Comedy Central's the "DAILY SHOW." Check it out.

(BEGIN VIDEO CLIP)

JON STEWART, HOST, THE DAILY SHOW WITH JON STEWART: There it is your moment of Zen.

KYRA PHILLIPS, CNN ANCHOR: I know who likes chocolate -- our Zain Verjee loves chocolate, one of our main cadets. Oh, nice melons behind you there.

ROBERTS: Whoa! Whoa!

PHILLIPS: Whoops, I'm sorry, was that (INAUDIBLE)?

UNIDENTIFIED MALE: Thank you.

(END VIDEO CLIP)

ROBERTS: Yes.

VELSHI: Yes. Zain, came back strong, though, because the next hit that she did she was actually holding two watermelons in her arms.

CHETRY: Today and last week. Can't win. I know. You're smart.

VELSHI: No, no. You did the right thing. You just shut up and say nothing.

(CROSSTALK)

ROBERTS: Exactly. Turn tail and rust.

CHETRY: It's not about the gas.

VELSHI: That's exactly right.

ROBERTS: It's about the melon.

CHETRY: Thanks, Ali.

ROBERTS: Turning on the charm and getting tough all at the same time. Michelle Obama's new team, a new strategy on the campaign trail. That's coming up.

He ran for president in 1992, now Ross Perot is back this time with a $93 trillion message for the nominees.

CHETRY: And man trained to kill American soldiers in Iraq. On these propaganda videos that's obtained by us here at CNN, the military has its proof that they are being armed and trained by Iran. Details on that. You are watching the "Most News in the Morning."

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

JAY LENO, HOST, "THE TONIGHT SHOW WITH JAY LENO": Barack Obama announced that this week he will visit Iraq and Afghanistan before the election in November. He said he wants to see an area that's been over run by violent extremists. So sounds like he already misses his old church.

(END VIDEO CLIP)

ROBERTS: Barack Obama's old church the butt of some late night laughs last evening. It's also one of the right wing's favorite targets. Another target has been Senator Obama's wife. Barack Obama said Michelle is off limits. Now the campaign is putting her back out there with a new team and a new strategy.

Jessica Yellin joins us now with more.

Jessica?

JESSICA YELLIN, CNN CONGRESSIONAL CORRESPONDENT: John, Kiran, aides in the Obama campaign believed the conservative's knives are out for Mrs. Obama. So they are putting her on a charm offensive, their way to free up attacks.

(BEGIN VIDEOTAPE)

YELLIN (voice-over): Michelle Obama wants you to know her better.

MICHELLE OBAMA, SEN. BARACK OBAMA'S WIFE: I have to be greeted properly. This bump please. YELLIN: The campaign insists her appearance on "The View" and on the cover of "US" magazine is not part of an effort to remake her image, but to get ahead of conservative attacks they know are coming.

VALERIE JARRETT, OBAMA FOR AMERICA, SENIOR ADVISOR: If it's not accurate, we're going to correct it and we're going to correct it immediately. We've seen kind of this on insidious e-mails that go around and I think the sense is it's time to stop all that.

YELLIN: They say the best way to counter it all is by putting her on center stage to explain statements like this.

M. OBAMA: For the first time in my adult lifetime, I'm really proud of my country.

YELLIN: It went viral on conservative Web sites.

M. OBAMA: Just let me tell you, of course, I'm proud of my country. Nowhere but in America could my story be possible.

YELLIN: Conservative critics are not just attacking Mrs. Obama's patriotism, they call her elitist.

M. OBAMA: Barack would never allow you to go back to your lives as usual -- uninvolved and uninformed.

YELLIN: They called her negative.

M. OBAMA: You are more easily led by fear. It is easier to live in your own fear when you are struggling every day.

YELLIN: They say she is angry.

M. OBAMA: Every step of the way in my life and so many of you out there have been told no, don't, you can't. Wait, we are not ready. Wait your turn.

YELLIN: The campaign insists that for every conservative troubled by Mrs. Obama's message, many new voters are responding. Among those drawn to her are single working women, hard to reach crucial swing voters.

JARRETT: I think that Michelle makes it safer to talk about things. And she talks about things that maybe that haven't been said before, but have been felt. And you know, there are so many women I think can feel that their voices haven't been heard.

(END VIDEOTAPE)

YELLIN: A senior Obama aide tells me they plan to beef up Mrs. Obama's staff to give her the kind of political team of veterans who are seasoned at rapid response that you usually see around the candidate. This aide says the team will be unprecedented for the spouse of the candidates.

John? Kiran?

ROBERTS: Jessica Yellin this morning. Jessica, thanks.

CHETRY: Well, remember, Ross Perot took nearly 20 percent of the vote back in the '92 presidential election, and now he is taking the candidates to task. He says they better start paying attention to the national debt. He's got the charts to prove it.

ROBERTS: He's got those charts.

CHETRY: Also ahead, soldiers attacked on tape. The propaganda video being used to recruit more fighters to kill U.S. soldiers in Iraq and the U.S. military said it's coming from Iran. More details.

ROBERTS: And breaking news this morning. Rising waters and more levees at their break point. This morning, the city of East St. Louis is in danger. You are watching the "Most News in the Morning."

(COMMERCIAL BREAK)

CHETRY: A propaganda video used to recruit fighters to kill U.S. soldiers. They are being targeted on the tape obtained by CNN. The U.S. military says it is proof Iran is training an elite militia inside of Iraq.

CNN's Michael Ware is breaking this story from Baghdad.

(BEGIN VIDEOTAPE)

MICHAEL WARE, CNN INTERNATIONAL CORRESPONDENT (voice-over): These men are well-trained to kill American soldiers in Iraq. They belong to what U.S. military intelligence called the special group.

This video obtained by CNN shows them firing against U.S. targets. Elite groups of Shiite fighters trained in guerilla warfare by the militant Lebanese group Hezbollah. They are armed and directed by Iran.

GEN. DAVID PETRAEUS, TOP U.S. COMMANDER IN IRAQ: Clearly, again, the Iranian-supported special groups are right now again very, very difficult enemy. They are killing our soldiers. They are shooting rockets at the Iraqi seat of government, at the international zone.

WARE: U.S. military intelligence says Iranian-backed militia like this are killing more U.S. soldiers each month than al Qaeda or the Sunni insurgency. And the U.S. now rate Iran as an equal or greater threat than al Qaeda in Iraq.

U.S. intelligence says Iranian-made weapons are still flooding across the border. Some seized in April with 2008 markings. It also claims that captured members of the special groups have admitted they were trained inside Iran. But it's very hard for the U.S. to prove continuing Iranian involvement with the special group.

It's most recent dossier evidence sent to Tehran with an Iraqi delegation merely adds fresh detail to old allegations. And on his last visit to Tehran, Iraq's Prime Minister Nuri al-Maliki carried his own dossier of evidence implicating Iran, yet even his senior aides says it's weak.

UNIDENTIFIED MALE: I mean, look, you may ask us for evidence, we cannot produce watertight evidence. We cannot. Because they have experience with even the (INAUDIBLE) regime of protecting the borders causing problems for many years. They have that experience without being exposed.

WARE: Iran also had strong ties to the major political parties that make up the governing coalition in Baghdad with even Iraq's president considered by U.S. intelligence to be an Iranian agent of influence. All of which the U.S. has to accept as a fact of life.

PETRAEUS: Again, it's a reality.

WARE: That there is that kind of infiltration.

PETRAEUS: It's a reality. Again, look, as you pointed out earlier but again for the listeners, your audience, these parties are products, many of them of time in Iran.

WARE: And though Iran's influences believe to be growing, Petraeus says he still sees a possible opportunity here with some Iraqi politicians connected to Iran becoming anxious about Iran's special group.

PETRAEUS: You see leaders of parties that again have benefited financially, physically and all kinds of different ways from their relationships with Iran. Now being gravely concerned about what these special groups and just to read the militias are doing in Iraq.

WARE: The Iraqi Army has moved against Shiite militia in Sadar City and in the port of Basra. The operations ending off the ceasefires at least one broken by Iran were declared. So that leads the special group who the U.S. said is responsible for a huge car bombing in Baghdad on Tuesday as the chip of Iran's military spear in Iraq.

At last Friday's prayers, anti-American rebel cleric Muqtada al-Sadr announced the creation of a new group in his Mahdi Army militia to fight U.S. troops. Meaning Iran's special groups may have just found a political sponsor inside Iraq. With the success of America's mission at stake, for General Petraeus this is a critical time.

PETRAEUS: Well, I think again the question is what is the character of that involvement? What is the helm align, is it? Do they allow Iraq to succeed again as the first Shiite-Arab state to let this new country in this ancient land actually prosper and flourish or do they somehow try to control it or use it as a tool?

WARE: Yet the Iraqi government said if Iran promises not to interfere in Iraq's affairs, it will forge closes security ties with Tehran.

UNIDENTIFIED MALE: We will open the gate for full cooperation with Iran. There can be security training. We can benefit a lot from Iran, with the counter intelligence experience or counter terrorism.

WARE: But while the special group attacks continue against U.S. bunkers and American soldiers, an alternative to the rising Iranian influence is precisely what America needs.

Michael Ware, CNN, Baghdad.

(END VIDEOTAPE)

JOHN ROBERTS, CNN, ANCHOR: It's 30 minutes after the hour and this just in to CNN. Two former Bear Stearns executives have been arrested in New York City. They are in charge of hedge funds that held risky subprime mortgages. It is not clear what the charges are, but those risk investments did eventually lead to the collapse of Bear Stearns.

Treasury Secretary wants to give the Fed new powers to police Wall Street. The "Washington Post" has obtained remarks that Henry Paulson would give in a speech later on today. Paulson is expected to say that new steps need to be taken to protect the financial system after the collapse of Bear Stearns.

The House is expected to approve $165 billion for the funding for the wars in Iraq and Afghanistan without any restrictions on the money. In exchange, democrats got republicans to support two of their issues, extending unemployment benefits and expanding educational benefits for veterans.

Well, Ross Perot is jumping back into the election frey with a warning for both candidates, saying pay attention to the national debt. Our Jason Carroll joins us now with a story and in addition to Ross Perot, coming back here and so were some of his infamous videos, some visuals.

JASON CARROLL, CNN CORRESPONDENT: Oh, yes. I think a lot of people remember some of those and are familiar with his message. Perot wants lawmakers to stop spending money he said the country does not have. And to prove his point, he is hitting the internet with a new website.

(BEGIN VIDEOTAPE)

ROSS PEROT: Today our great country is at a critical turning point.

CARROLL (voice-over): Remember him? Presidential race spoiler to some. Father of fiscal charts to others. Ross Perot has reemerged with a familiar warning for the democratic and republican presidential candidates.

PEROT: Not since the great depression have we seen an economic crisis of the magnitude that we are facing today.

CARROLL: This week, Perot launched that message on a new website called perotcharts.com. An issue, the national debt, now more than $9.3 trillion and growing. Thanks to baby boomers reaching retirement and spending more on Medicare and Social Security.

DAVID WALKER, FMR. COMPTROLLER GENERAL: We are mortgaging the future of our country, of our children, and our grand children.

CARROLL: David Walker is the former U.S. Comptroller General of the nation's top accountant. He consulted with Perot on the need to cut spending in Washington.

WALKER: Washington has the first rule. I mean, you're in a hole, the first thing you do is stop digging. It hasn't learned that yet.

CARROLL: So Perot is here to teach again with the styles. He is using charts as learning tools. It already worked once.

PEROT: Should we first cut spending and then cut taxes.

CARROLL: In 1992, Perot challenged then President Bush and Bill Clinton with the charts during his presidential run. Perot won almost 20 percent of the vote. This time Perot is not running. But political analysts says that his push to make the debt a priority may not go over well with Senators McCain or Obama.

STU ROTHENBERG, ROTHENBERG POLITICAL REPORT: It gives Obama an opportunity to talk about economic issues and he's more comfortable than Senator McCain on those themes but it may force him to talk about those issues in an uncomfortable way. Taxes and spending that he'd rather not discuss.

(END VIDEOTAPE)

CARROLL: And the challenge this time can Perot get voters interested in a problem facing future generations with soaring foreclosure rates and gas prices affecting people right now from this generation.

ROBERTS: Well, if anybody can make noise, it's Ross Perot.

CARROLL: Absolutely. With that accent, sure.

ROBERTS: Jason, great story. Thanks very much.

CARROLL: All right.

ROBERTS: Kiran.

KIRAN CHETRY, CNN ANCHOR: Young people crowding the polls in the biggest youth vote turn out in ages. What's their motivation? We've going to hear from two college students who are very involve in the political process. In fact, one of them is the country's youngest super delegate. Which candidates and which issues are touching them?

Also, the Vatican versus Hollywood. A big film banned from shooting inside the Catholic Church. The Vatican says they're not going to let people film a movie that's basically a caricature of their religion. We're taking you all the way to Rome to find out why Tom Hanks is not welcome there.

(COMMERCIAL BREAK)

CHETRY: Paying for college is a big concern for families across the country. Senator Barack Obama is calling for a $4,000 tax credit to help pay tuition in exchange for 100 hours of community service. The cost, his campaign said $10 billion a year. It's just one way that the campaigns are trying reaching out to the young voters and address their concerns.

Joining us live now from Milwaukee is Jason Rae. He is the chairman of the Wisconsin College Democrats and actually the youngest super delegate in the country. Also, in Washington, Sara Mikolajczak. She chairs the University of Wisconsin College Republicans. Thanks to both of you for being with us this morning. Good to see you.

JASON RAE, YOUNGEST SUPERDELEGATE: Thanks for having me.

CHETRY: Sara, let me start with you, what do you think of Senator Obama's proposal, this $4,000 tax credit in exchange for some community service.

SARA MIKOLAJCZAK, UNIV. OF WISCONSIN COLLEGE REPUBLICANS: Well, Senator Obama's plan sounds great. You know, tax credits are always welcome but the question is where will he get the money. I don't think it's so much that we need more politicians involved with our education, but we need to encourage our universities to tap into the billions of dollars in endowments that they already have to help us out with out tuition.

CHETRY: We are seeing some Ivy Leagues do that. In fact, Jason, what do you make of the proposal?

RAE: I think it's a great proposal and in fact, just to respond to Sara quickly, I know Senator Obama has talked about. He's actually going to be cutting taxes for 95 percent of Americans during his planned closing corporate loopholes and taxing the wealthiest one percent. Just to make sure that they are all paying an equal share. And I think that's how we're going to pay for it. And I think it's a great proposal that we need to move forward with.

CHETRY: Sara, one of the things that you guys talked about when you spoke with our producers, both of you in fact but let me ask Sara first, some issues that are really important to young people - health care and of course, the economy as it relates to getting jobs. Tell us which candidate or what proposals you like from which candidate on how these can help you.

MIKOLAJCZAK: Well, you know, Senator Obama does resonate more with the younger generation but I think if Senator McCain would just tap in to the fact that our generation value choice more than anything and if he would spread those choices throughout social security, throughout health care, then he would really resonate with a lot more younger voters.

CHETRY: What about opposition to the war, Jason? Is that as big of an issue on college campuses as some of the other domestic issues?

RAE: Sure, I think it will certainly be an issue. I think classmate and friends who are going over to serve. And I think that is something that is going to resonate in this campaign. What it comes down to, they see a choice between Senator Obama who wants to start bringing our troops home and you see Senator McCain who is talking about leaving our troops there for hundreds of years, which is not just going to affect just my generation, it will affect my kids, my grandkids and even my great grandkids.

CHETRY: Sara, what are about the war in Iraq?

MIKOLAJCZAK: You know it's something that does resonate with a lot of young people, but you know, we are over there and the surge regardless of what people tell you the surge is working and anybody who tells you otherwise is not worth arguing with.

CHETRY: Jason, is it worth it?

RAE: No, it's not. What we're doing over there is that we are losing, you know, Americans who could be back here getting a college education, raising a family and we have so many American casualties, it's something that we need to focus on and end it as soon as we can.

CHETRY: Sara, are you going to continue to campaign for and remain as involved in this campaign season as we get into the lull of summertime?

MIKOLAJCZAK: I'm doing everything that I can to support the candidate who I think will best suit this country.

CHETRY: And that is John McCain, of course? Right?

MIKOLAJCZAK: Of course.

CHETRY: How about you, Jason? Are you going to stay as focused with your super delegate role and everything heading into the summer?

RAE: Absolutely. I'm out there knocking on doors right now, making sure that voters understand that Senator Obama is the clear choice for this country, that is going to move us forward in a new direction and make sure that the middle class and you know, young people like myself have a say in the process.

CHETRY: All right. Jason Rae and Sara Mikolajczak, thanks for getting up with us this morning and good luck.

RAE: Thank you.

MIKOLAJCZAK: Thank you.

CHETRY: John.

ROBERTS: It's 20 minutes now at the top of the hour. And breaking news on the political front. And a new video that will be posted on his website. Senator Barack Obama explains that he is opting out of public financing for the general election. Instead, he is going to rely on private financing which will give him campaign against campaign, a huge advantage over John McCain. Barack Obama has been a fund-raising machine ever since he got into the race and the totals that he racked up in the primary were nothing less than stunning. However, when you combine what the campaigns can do together with the committees because the Republican National Committee is a fund-raising machine itself, it equalizes things a little bit more but certainly this will put John McCain the campaign at a disadvantage but will also John McCain a brand new opening on which to attack Barack Obama. Because the news this morning, Barack Obama saying that he is opting out of public financing for the general election.

A new campaign calling card. The fist pump. Michelle Obama is all over it. So, other candidates? Look at that. And so is our Jeanne Moos. Breaking news. Flash floods warnings are in effect after a levee breach just north of St. Louis. The wall of waters taking out homes and sending folks scrambling for higher ground.

Ban from churches in Rome. The Catholic Church said no to Hollywood stars Tom Hanks and Ron Howard because of their controversial new film.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Many Catholics found it offensive. The Vatican calls it a potpourri of lies.

UNIDENTIFIED MALE: It's a little bit surprising that the same people will be coming now to Rome, looking for permission to film inside churches and to film a movie that is itself also a caricature of the Catholic Church.

(END VIDEO CLIP)

ROBERTS: And more on what the church has to say about it when the most news in the morning returns.

(COMMERCIAL BREAK)

CHETRY: We are watching breaking news this morning on AMERICAN MORNING. And a 150-foot wide levee breach along the Mississippi River, happening this morning, just 30 miles north of St. Louis. At least two homes were reportedly swept of right off their foundation. The aerials were just astounding when you see how much land has literally been washed away. There were more than 20 other levees that have also either overflowed or been breached. It is feared that as many as 30 more are now in danger.

ROBERTS: And other breaking news this morning that we told you about just a second ago, Senator Barack Obama has decided to opt out of public financing for his general election campaign. This is an about- face from earlier this year when he said during the primary season that he would most likely do it. Let's bring in our senior political correspondent Candy Crowley. She is in Washington. Will it leave him open to attacks from the McCain side, Candy?

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT: Well, absolutely. And in fact, John McCain had already begun to attack Obama on this issue several weeks ago, saying when Obama began to kind of drop hints that maybe he would not take public financing. His argument is listen our campaign was fuelled by all of these small donations and that really is the best kind of campaign finance reform. He also happened to raise over $250 million just for the primary season.

So, nonetheless, the argument from the Obama campaign and in this video which he sent to his supporters. He said so, you know, this election is in your hands as it had never been done before. But this is a huge disadvantage for John McCain who has not raised anything like the kind of money that Obama has. And you can expect that he will hit Obama on two scores. One, you went back on what you said you would do, and two, this is not how to reform Washington.

ROBERTS: All right. Candy Crowley for us this morning with that breaking news, and of course, we will keep following this all day. Candy, thanks.

CHETRY: And there's a controversy brewing in Rome today between Tom Hanks and Ron Howard and the Catholic Church. The stars are filming the prequel to the blockbuster movie "The Da Vinci Code" but the church has banned them from filming inside of Rome's churches. Jennifer Eccleston has the story.

(BEGIN VIDEOTAPE)

JENNIFER ECCLESTON, CNN CORRESPONDENT (voice-over): From the ancient to the avant-garde, from the humble to the heavenly. They are all off limits to some of the biggest names in Hollywood. At least while Tom Hanks and Ron Howard are on the job. Filming "Angels and Demons." The prequel to Dan Brown's novel and monster hit, "The Da Vinci Code."

UNIDENTIFIED MALE: Witness the biggest cover up in human history.

ECCLESTON: The blockbuster film's premise, Jesus Christ married Mary Magdalene and fathered children. Many Catholics found it offensive. The Vatican calls it a potpourri of lies.

FATHER JOHN WAUCK, HOLY CROSS UNIVERSITY, ROME: It's a little bit surprising that the same people would come now to Rome, looking for permission to film inside churches and to film a movie that is itself also a caricature of the Catholic Church.

ECCLESTON (on-camera): "Angels and Demons" feature church intrigue, evil cults and the murder of Catholic clergy. But unlike the "Da Vinci Code," it is almost entirely set in Rome and filming here was a must.

ECCLESTON (voice-over): Street scenes and ancient piazzas no problem. But the producers also wanted to shoot at the Vatican and in two historic Rome churches where in the book, two cardinals are murdered. The Vatican said no with one official telling an Italian paper it would be an offense against god. To one movie critic said that's an overreaction.

TOM O'NEIL, "IN TOUCH WEEKLY": The Church could have turned the other cheek and quietly said no, you can't use our churches. Instead they have vehemently denounced this movie publicly as an offense against god, as poison of the faith. Wow, those don't sound like typically Christian words.

ECCLESTON: Father John Wauck said artistic license is one thing, but in this case punto ebasta, enough already.

WAUCK: Sometimes when you are interested in making money, it's necessary to do things that are somewhat sleazy like caricature another person's religious faith. And apparently from Hollywood's perspective, that's not a big problem.

ECCLESTON: But it is a big problem in Rome where some sins are just too great to be forgiven. Even if they are for art's sake. Jennifer Eccleston, CNN, Rome.

(END VIDEOTAPE)

CHETRY: And we're now dipping into the Dr. Gupta's mail bag as we do every Thursday. And this morning, we've got an interesting question about hair loss, but in women. We will get Sanjay's take on that.

ROBERTS: We'll see what he has to say.

And they're just wild about Obama. Not the candidate, his wife. Our Jeanne Moos looks at the political stylings of Michelle Obama. That's all ahead.

(COMMERCIAL BREAK)

ROBERTS: Nine minutes to the top of the hour and time to dip into Dr. Gupta's mail bag. We do it every Thursday. You write, we ask, he answers and you don't spend 90 minutes in the waiting room.

CHETRY: That's right. CNN's chief medical correspondent Dr. Sanjay Gupta joins us from Atlanta. Great to see you this morning, Sanjay.

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: No wait this morning, get through it.

CHETRY: Exactly, our first e-mail comes from Mary Lou in Sarasota, Florida and she writes, "I keep hearing about a mouth swab for oral cancer. Is it worth it and who should get it?"

GUPTA: This is fascinating, Mary Lou. We've actually been doing a lot of reporting on this. First of all, the rates of oral cancer among people in their 40s have actually doubled over the last few years. We are not exactly sure why, but about 35,000 people get some form of oral cancer every year. There is a test. It's a fairly simple test. It takes just a few minutes, caveat it's not always covered by insurance. So, you want to ask your doctor about this first.

Basically, they just do the test. They look inside your mouth with a special kind of light and they can figure out pretty quickly whether or not you have oral cancer. Heavy smokers, heavy drinkers, people with a family history are going to be most at risk. Also, take a look at some of the things that might sort of warn you off of this -- persistent sores in the mouth, difficulty chewing, ear pain, swelling of the neck, change in voice. Those are things that might prompt you to ask your dentist about getting one of these tests. ROBERTS: Sanjay, we hear a lot about male pattern baldness in the news. And here's an interesting twist on that. This comes from Carol of Roslyn, New York.

GUPTA: Is that for me?

CHETRY: You are fine.

ROBERTS: We are not talking about you, no. Nobody has as good of a head of hair as you do. She writes and says, "I'm 55 years old. My hair has been thinning and I try Rogaine without any success. What can I do?"

GUPTA: This affects men and women. There's no question about it. We get a lot of questions about this particularly. A couple of things to keep in mind. Carol you said you are 55 years old, it does tend to affect women in menopause more likely. So about 40 percent of women going through menopause have some sort of hair loss. The good news is that about six months to two years after menopause is over, your hair starts to return so that's something you can look forward to. Rogaine is a fairly good product. One of the concerns about that is that it typically takes about six months in men and women to see any results. And a lot of times people just don't want to wait that long. Staying well hydrated, eating a high nutrient diet. Those things seem to help as well.

CHETRY: All right. A lot of people say that not only does their hair falls out, and it doesn't look as nice as it, the quality isn't there. Can you take supplements or anything to sort of make your hair and nails stronger?

GUPTA: Vitamin E helps to help to try to make that hair thicker, stronger and shinier but high nutrients in general, just eating a diet that's high, rich in anti-oxidants and lots of vitamins. That seems to help. Also, really keeping well hydrated.

ROBERTS: Or you can do what Kiran did and got pregnant.

GUPTA: You hair looks marvelous.

CHETRY: That's wonderful on the hair. A few months down the road, well, let's just say it looks like there was a brilo pad underneath the shower. Meanwhile, one last e-mail coming from Mollie in Hot Springs, South Dakota, she asks "Why are we so concerned about circulatory problems on airliners? How about people who "sit" confined in wheelchairs for years?

GUPTA: Mollie, it's a great question. Here's something that maybe a lot of people maybe don't know. There is nothing in particular about an airline cabin that makes you more likely to get a DVT. People thought maybe the change in oxygen or the change in the pressure in the cabin. That's not the issue. It really doesn't affect the DVT. It's just sitting for a long period of time. So, you're absolutely right. People who sit in wheelchairs or confined to a bed are also going to be at risk. Someone in a wheelchair for the rest of her life may take a low dose of an anti-coagulant, a sort of blood thinner, to try and prevent those clots from happening. People on planes, staying well-hydrated and getting up, walking around that's probably your best bet.

ROBERTS: Taking baby aspirin help?

GUPTA: Taking a baby aspirin. Exactly. That's a type of blood thinner and that might help people who are going to confined to a wheelchair or bed for some time.

ROBERTS: All right. Sanjay, good tips this morning. Thanks for...

GUPTA: My favorite segment of the week.

ROBERTS: Yes. Absolutely. It's great to have you back from Cameroon by the way.

GUPTA: Appreciate it.

ROBERTS: We will be doing this again next Thursday.

GUPTA: I'll be here.

ROBERTS: When the doc opens up the mail bag.

Obama fever. Catch it. Would be First Lady Michelle Obama is charming audiences and the ladies of "The View." Jeanne Moos has her own view coming up.

(COMMERCIAL BREAK)

ROBERTS: Three minutes to the top of the hour. Breaking news this morning. Barack Obama announcing in a video out to his supporters that he is opting out of public financing for the general campaign. He reneges in a pledge that he made earlier this year to take public financing. Of course, he is an absolute fund-raising machine and will have a distinctive advantage over John McCain, at least campaign to campaign going into the general election. We will keep following the story for you all day long.

CHETRY: And Michelle Obama, his wife, co hosted "The View" and it gave us a look on her style. CNN's Jeanne Moos takes a look.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): Remember Obama mania? Well, this felt like Mrs. Obama mania. And what better way to pump up the crowd but with the fist pump. Michelle Obama said she got the gesture from younger staff members and ever since she did it with her husband. The fist pump has infected the nation. Spread even by politicians from opposing parties.

Comedian Jimmy Kimmel did a long distance fist pump with Senator Obama. Anyone expecting fist to cost between Michelle Obama and "The View," are conservative got handholding instead.

MICHELLE OBAMA, WIFE OF SENATOR BARACK OBAMA: This girl is, you know, she is solid.

MOOS: The host of "The View" seemed over excited. Enthusiasm was spilling out all over.

SHERRI SHEPHERD, CO-HOST, "THE VIEW": You are setting this trend where everyone wants to go sleeveless. Your arms are toned but mine are just like blah, blah, blah. But it seems like you look gorgeous.

MOOS: We interrupt this newscast to bring you an admittedly superficial analysis of Michelle Obama's style.

MARK-ALAN HARMON, CELEBRITY STYLIST: She is going bold colors, bright clean lines and very modern.

MOOS: Orange, red and purple.

HARMON: Bold and savvy. It's lie - she's like, it's like every designer in New York must be dying right now to get their hands on her.

OBAMA: It's fun to look pretty.

BETTE MIDDLER, CO-HOST, "THE VIEW": You have a flair for it too as they compare you to Jackie Kennedy very often.

OBAMA: Well, that's very flattering.

MOOS: It's not that she looks Jackie Kennedy. Obviously, she's not white.

HARMON: Yes, Michelle's black. FYI.

MOOS: But stylist Mark-Alan Harmon says Jackie was the style icon and Michelle Obama --

HARMON: There is the makings for an iconic woman there.

MOOS: And don't say you haven't noticed this about Michelle Obama's wardrobe. It is very form fitting.

HARMON: She has got a great little body.

MOOS: Hey, let's analyze the husband. It's only fair to do the wife. And we are not alone.

UNIDENTIFIE MALE: Michelle Obama, I want to thank your mama for making you a cutey and giving you that that booty.

MOOS: Even her pantyhose or lack thereof have drawn comments.

Out of respect for you I put on panty hose.

And I didn't. It feels better. That's what it is. I stopped wearing panty hose a long time ago because it was painful.

MOOS: No pantyhose. No runs when your husband run for president. Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

CHETRY: Yes, I kind of hope...

ROBERTS: Painful?

CHETRY: Well, I got a whole drawer full of them. You just -- people don't wear them anymore.

ROBERTS: They want to be free.

CHETRY: Free from the pain.

ROBERTS: They're out there and they are loving it.

That's going to do it for us today. We'll see you again tomorrow.

CHETRY: Thanks for joining us on this AMERICAN MORNING.

ROBERTS: "CNN NEWSROOM' with Tony Harris and Heidi Collins begins right now.