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American Morning
Analysts Want Oil Speculation Regulated; Rebate Checks Pulled and Intercepted for Debts; Hillary Clinton Back to Work in the Senate; Hoax BMW Ad Goes Viral; The World's Rich Getting Richer; Bill Clinton Ready to Work for Barack Obama; John McCain Pushing his Energy Plan in Las Vegas Today; More Rain Headed to the Midwest; Banning Bottled Water From Restaurants to Cities; A 30-Minute Mockumentary Made its Way Across the Web
Aired June 25, 2008 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ANNOUNCER: Power play. Congress steps in, hoping to get nd in time to this summer.
Plus, back to work. Hillary Clinton takes her seat. Barack Obama talks about their future together.
Hopefully, if successful, in the White House she's going to be.
On this AMERICAN MORNING.
JOHN ROBERTS, CNN HOSTWe will be hearing from Barack Obama this morning, the 25th of June. I woke up this morning and thought, where did the month of June go?
KIRAN CHETRY, CNN HOST: Went by in a flash, didn't it?
ROBERTS: Yesterday it was may and it's almost July. Incredible.
CHETRY: Thanks for being with us. We start with issue number one, and that's your money. Consumer confidence right now at a 16-year low. Former Federal Reserve Chairman Alan Greenspan says the economy is on the brink of recession. The Fed is expected to make comments about inflation today, and gas is at $4.07 a gallon on average. The House failing to pass a measure making gouging at the pump a federal crime.
Some relief though may be near. Oil analysts said that if Congress cracks down on speculation those pump prices could drop fast.
Brianna Keilar live for us in Washington this morning with a look. Hi, Brianna.
BRIANNA KEILAR, CNN CORRESPONDENT: Good morning, Kiran. What if I told you that within 30 days you could be paying much less to fill up your car? Some oil analysts testifying before Congress this week say look no further than lawmakers right here in Washington.
(BEGIN VIDEOTAPE)
KEILAR (voice-over): Speculation. It's a dirty word to some on Capitol Hill. REP. JOHN DINGELL (D), CHAIRMAN HOUSE ENERGY CMTE: Rapacious. Speculation.
KEILAR: Many Democrats and Republicans worry it's driving up the price of oil and gasoline. One oil analyst says Congress stepping in is the key to cheaper gas.
REP. ED WHITFIELD (R), KENTUCKY: So you're saying we adopt these regulatory changes we could almost cut the retail price of gas in half in a relatively short period of time?
MICHAEL MASTERS, OIL ANALYST: My estimation would be within 30 days.
WHITFIELD: Within 30 days of the president's signed bill?
MASTERS: Yes, sir.
KEILAR: Here's how speculation works. Investors, many of them public pension funds, buy oil futures to sell later at a profit. It's all done on paper. They never physically acquire any oil.
REP. BART STUPAK (D), MICHIGAN: Your pension fund manager may be using your retirement money to drive up the price of oil.
KEILAR: It's perfectly legal. And with oil prices on the rise, it's a sure way to make money. But Republicans and Democrats call some of it excessive.
SEN. JOE LIEBERMAN (D), HOMELAND SECURITY CHAIRMAN: Speculators are moving enormous amounts of money into commodities markets for the obvious purpose of making more money. But in so doing, they are artificially inflating the price of food and fuel futures and causing real financial suffering for millions and millions of people and businesses.
KEILAR: Among the proposals, making transactions more transparent so regulators can tell whether speculators are gaming the system. Banning hedge funds and pension funds from investing in the oil market. And slowing the speculation spiral by increasing the down payment investors must make on a contract.
Right now, they pony up just five or seven percent. Compare that to the 50 percent down required to purchase stocks.
(END VIDEOTAPE)
KEILAR: But some experts tell Congress, making changes could do more harm than good. They say it will shift oil trading to even less regulated areas, perhaps overseas, driving up oil prices even higher and out of the reach of U.S. regulators, Kiran.
CHETRY: So when might we see any legislation move on this?
KEILAR: Well, it could be very soon. Congressman Bart Stupak of Michigan, one of the strongest advocates for Congress, stepping in here. He says we could see a vote in the House sometime next month. CHETRY: All right. Brianna Keilar for us in Washington. Thanks.
JOHN ROBERTS, CNN ANCHOR: The full Senate could vote as early as today on a $300 billion foreclosure rescue bill. The measure won overwhelming support, 83-9, on a key procedural vote. It still needs to be reconciled with a similar bill that was passed in the House, and Democrats are fighting over key details. So a final deal is not expected until sometime in mid July. President Bush is also threatening to veto it if it ever comes out of Capitol Hill.
And here's more on the Senate's plan in an "AM EXTRA" today. An estimated 400,000 homeowners would get help refinancing into cheaper loans. It provides $14 billion in tax brakes including a credit of up to $8,000 for first time homebuyers who buy in the next year. It also calls for $4 billion to buy and fix up foreclosed properties -- Kiran.
CHETRY: Well, the "Most Politics in the Morning" now. Barack Obama asking his big money donors to help Hillary Clinton repay her campaign debt. In all, Clinton owes some $22 million. $12 million of that money is the New York senator -- is money that she loaned herself. Fund raisers for Obama and Clinton will meet tomorrow night ahead of their first joint campaign appearance Friday in New Hampshire.
Also, we had an exclusive interview with CNN. Obama praised his former rival turned ally.
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA (D), PRESUMPTIVE PRES. NOMINEE: Senator Clinton has been a larger than life figure in Democratic politics and American politics even before she ran for president. Her candidacy only enhanced her stature.
She ran an extraordinary campaign. She garnered not just votes but the passion and support of so many millions of people. She's going to be a force to be reckoned with not only in the Senate but hopefully, if I'm successful in the White House, she's going to be one of my key partners in making sure that we're moving forward on issues like health care that she cares so deeply about.
(END VIDEO CLIP)
CHETRY: Meanwhile, Hillary Clinton returned to the Senate full time following her 17-month long primary battle with Barack Obama. The junior senator from New York says she's jumping right back in.
(BEGIN VIDEO CLIP)
SEN. HILLARY CLINTON (D), PRESIDENTIAL CANDIDATE: My role is to be the very best senator I can be and to represent the greatest state in our country. We have a lot ahead of us, and I am rolling up my sleeves and getting back to work.
(END VIDEO CLIP)
CHETRY: As for a potential Obama/Clinton Democratic ticket, well, Clinton says that it's totally Obama's choice and not something she's thinking about.
ROBERTS: Breaking news in California to tell you about this morning. Eleven people including nine teenagers missing inside the Sierra National Forest, about 50 miles northeast of Fresno. A command center has been set up at the Courtright Reservoir. Police, volunteers and helicopter are searching a 20-square mile area at an altitude between 9,000 and 10,000 feet.
The group was last seen over the weekend. The guide says he reported them missing after they failed to show up at a designated meeting spot. The group is said to have been prepared to camp until Friday, so maybe not in any trouble just yet.
We're also following some breaking news in Evansville, Indiana, this morning. Four people killed at an overnight shooting at a plastics plant. Police say the gunman believed to be an employee may have taken his own life. Eight other people were injured.
CHETRY: Also new this morning, startling new figures on diabetes released. Twenty-four million Americans have diabetes. That's nearly eight percent of the U.S. population. The Centers for Disease Control and Prevention says it's a three million person jump between 2005 and 2007. A new report also shows another 57 million people have blood sugar problems known as pre-diabetes. CDC says that part of the increase is more people becoming aware that they actually have it.
Tiger Woods recovering today after undergoing surgery to repair torn ligaments in his left knee. It comes just over a week after he won the U.S. Open. And doctors say that with proper rehab his knee will be strong and there will be no long-term effects. It is the fourth surgery on his left knee, the second in 10 weeks.
ROBERTS: I wish him luck in his return. Machete though is not going to be playing in the British Open at the playoffs this year.
Deadbeat parents not paying up, so the government did it for them. $2 billion in rebates going right to the kids. We'll tell you about it.
Coming up on AMERICAN MORNING --
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Today's the big day.
(END VIDEO CLIP)
ROBERTS: Taking the viral video to new heights.
(BEGIN VIDEO CLIP)
ALINA CHO, CNN CORRESPONDENT: You don't need to do this.
JACK PITNEY, VP MARKETING, BMW NORTH AMERICA: No, we don't need to do it. But sometimes you want to have a little fun.
(END VIDEO CLIP) ROBERTS: The 30-minute spoof designed to launch a new car. You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
ROBERTS: We're floating (ph) in Allan Chernoff this morning who's here for Ali Velshi who's up there with his plastic shovel and his pail in the tar sands in Alberta playing around.
CHETRY: This is going to be a good piece. He's been gone a while.
ROBERTS: Yes. We might hear from him a little bit later on today.
But you've got some information. Some of these rebate checks that are coming out are not going to people who they're designated for. They're being diverted. What's going on with that?
ALLAN CHERNOFF, BUSINESS CORRESPONDENT: Absolutely. You know, this is money that people might have thought, well, sure. Everybody's going to get their money. But it doesn't quite work that way. The government is on to some folks.
Even if you're wondering where's my rebate check, well, there could be a very good reason you haven't gotten it yet, especially if you owe money for child support or taxes. The IRS is actually withholding about $2 billion from nearly two million people and so far, about half of that has been diverted. Let's have a look at where it's gone.
Fifty-five percent for child support, 39 percent for federal debts like student loans, and a little bit also for unpaid state taxes. The way it works is that most states actually send the Treasury Department a list of people who are delinquent and then the treasury actually withholds that money before anything is mailed out.
There are, however, a few states that are not members of the program, including California, Michigan and Mississippi. So folks in those states actually can get away with a little bit here.
CHETRY: Do you get some notification that your check went somewhere else because you owed money?
CHERNOFF: Yes, you do. Instead of a nice check from the IRS you're getting a nice little letter explaining exactly why. Sort of like having a book overdue at the library, let's say.
ROBERTS: Kiran was saying this sounds like a great idea in order to get some of the money that people owe into the hands of people who they owe it to, you know, whether it be kids, whether it be student loans or whatever. Could it be applied elsewhere?
CHERNOFF: No question. And this is really all thought through by the government. I mean, you might have thought, well, $600 here, $1,200 to those couples. But they really have a good sense of who owes what. And so, the government is on this.
ROBERTS: All right. Great. Thank you, Allan Chernoff. And great job in the floods last week, by the way.
CHERNOFF: Thank you. Thank you.
ROBERTS: You've been working out, I tell you.
CHERNOFF: Oh, a little time, a little time.
ROBERTS: Did you see him in his kayaking outfit?
CHETRY: I sure did.
ROBERTS: Wow. Putting us to shame here.
CHETRY: Yes. The suit is such a comedown from that.
CHERNOFF: So I had to dress up this morning.
ROBERTS: Allan, thanks.
CHETRY: Thanks, Allan.
Well, energy policy is a big hot topic on the campaign trail these days. We're going to hear what John McCain is proposing and why he is referring to Barack Obama as "Dr. No."
Plus, Jacqui Jeras watching extreme weather for us this morning. Hi, Jacqui.
JACQUI JERAS, AMS METEOROLOGIST: Hey, good morning, guys. You know, just when you think you start to see that light at the end of the tunnel for some flood victims, we have more levee breaches and now some heavy rain. The latest on the forecast is coming up. You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
CHETRY: Welcome back to the "Most News in the Morning." Forecasters are expecting more rain for northeast Missouri and central Iowa today and tomorrow. Officials are watching the weakest levee along the Mississippi. A hundred homes and 3,000 acres of farmland could be flooded if it breaks. They say the levee is so weak that a musk rat caused some water to be released just by digging near it. ROBERTS: Wow. Incredible.
CHETRY: You know, we were hearing from some of our reporters just stepping on the sandbags alone is enough to possibly cause a levee to break.
ROBERTS: Yes, they're on the verge of just letting go. A lot of those levees are so saturated.
Jacqui Jeras in the weather center in Atlanta this morning in for Rob Marciano. And she's got the forecast, more on it and what's going on with the levees. Good morning, Jacqui.
JERAS: Hey, good morning, guys. Yes, sad situation. We had two breaches yesterday, the one that you were just talking about there in Winfield, Missouri. You know, what happened yesterday as you're talking about that saturation, basically just a chunk of the levee slid off. So they've been sandbagging frantically, trying to protect that area. And, you know, the situation's so delicate that they're asking for people not to boat at all because the wake, even a two-inch wake could be enough to make that levee break.
So hopefully that doesn't happen today. But unfortunately, more woes because there's heavy rain that's pushing off into the area as we speak. In fact, we could see as much as two to four inches in this area. Look at that big complex that's moving through northern Missouri as we speak. Now, we're hopeful that this isn't going to make the river levels rise but it could be enough that it will keep it at a higher level for longer.
Right now, we're looking at the river at its crest in the Winfield area, and it could stay at or just below this, we think, through the weekend. There you can see the heavy rain moving through Quincy. We put our titan icons on there, and this is just an estimate, basically, of what the rainfall has been over the last 12 hours.
And we're seeing, you know, one to four inches easy across this area and it continues to come down. So they've issued flash flood watches and warnings on top of the warnings already in place because a lot of -- more streets and county roads are going to be covered in water this morning. So you just kind of starting all over, unfortunately in some of these places -- John and Kiran.
ROBERTS: Last thing they need. Jacqui Jeras for us this morning. Jacqui, thanks. We'll check back with you soon.
CHETRY: Well, 10 million millionaires. The list of the world's richest people getting longer and wealthier. So why aren't they feeling the economic pinch. Are there any lessons to be learned? We'll take a look, coming up.
ROBERTS: Coming up on AMERICAN MORNING, all revved up. The 30-minute documentary that turned out to be a work of fiction.
(BEGIN VIDEO CLIP)
ALINA CHO, CNN CORRESPONDENT: So if this whole thing is fake and you're not telling your customers it's fake, is that really a good idea?
(END VIDEO CLIP)
ROBERTS: Inside the spoof designed to literally launch a new car.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: The rev (ph) really got big next to the Statue of Liberty?
UNIDENTIFIED MALE: Bigger. Bigger, bigger.
(END VIDEO CLIP)
ROBERTS: You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
CHETRY: Welcome back to AMERICAN MORNING. It's a wildly popular video online. Millions of people logging on to see one small town, attempt to launch a BMW over the Atlantic Ocean. Well, it turns out the video is a fake.
It's part of a growing number of what are called gorilla marketing campaign, where people watching the videos might not even know that someone is trying to sell them something. So why would BMV do it?
Well, our Alina Cho has the inside story.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Today's a big day and all the townspeople are anxiously waiting for the world to descend upon Oberpfaffelbachen (ph).
ALINA CHO, CNN CORRESPONDENT (voice-over): Everything about this 30- minute documentary is fake, from the name of the Bavarian town to its quirky inhabitants, to the far-fetched concept of catapulting a BMV from Germany to the United States. It's part of an ad campaign to launch BMW's latest car in the U.S. market.
CHO (on camera): BMV is a brand name. You don't need to do this.
JACK PITNEY, VP MARKETING, BMW NORTH AMERICA: No, we don't need to do it. But sometimes you want to have a little fun along the way.
CHO (voice-over): And fun, even if over the top creates buzz.
PITNEY: We never try demographically. We always focus psychographically.
CHO (on camera): And what does that mean?
PITNEY: It means what kind of mindset do we think this vehicle will really resonate with. In the end, it could be an 18-year-old and it could be an 80-year-old.
CHO: Sure.
PITNEY: But if they had shared a similar mindset, we think we've got the right car.
CHO: Wow.
CHO (voice-over): But experts say companies need to be careful.
REUBEN HENDELL, CEO MRM WORLDWIDE: If you kind of get too quirky or a little too obtuse with what you're trying to say, people just might miss the whole idea.
CHO: Or scare people, like this Internet ad that showed cell phones popping popcorn, making people wonder if cell phones can be damaging to the brain. That ad was also a hoax.
CHO (on camera): So if this whole thing is fake and you're not telling your customers it's fake, is that really a good idea?
PITNEY: Obviously, we're not trying to in any way hide or conceal the fact that we're behind it, which is why we're talking today.
CHO (voice-over): Today, yes. But it was on the Internet for months before the car company admitted it was theirs. BMV says it's been a hit getting 10 million views.
CHO (on camera): And just for the record, you cannot launch a "1 Series" from Germany to the U.S. It won't happen.
PITNEY: Well, we're not going to do it.
(END VIDEOTAPE)
CHO: We certainly hope not. BMW, by the way, continued to joke the joke, if you will. They created Web sites for the fictional town of Oberpfaffelbachen (ph). I had to practice saying that. They even created a Facebook page for several of the characters including the fictional filmmaker who, if you can believe it, ended up with 800 Facebook friends.
And in the mocumentary (ph), you never actually see a BMW until about halfway in. But the real test, of course, Kiran, is how well the product actually sells. And we're told by BMW that two-thirds of these new cars are already pre-sold. Incredible.
CHETRY: Well, there you have it. There you have it. So is this and are these viral videos revolutionizing the way that companies decide to market and advertise?
CHO: They most certainly are. Listen, you can target a new customer. It's cost effective. The five-day shoot in Bavaria, really wasn't Bavaria, cost about a fraction of what a 30-second TV spot cost. I mean, listen, these viral marketing campaigns have been around as long as the Internet has been around but they've really become mainstream in the past five years. And as you can see, they're popping up everywhere now.
CHETRY: Very interesting. All right. Alina, thank you.
CHO: You bet.
CHETRY: Well, coming up at 6:54 Eastern time, we're going to be talking to an advertising expert about whether the buzz is worth any of the possible backlash from these marketing tactics -- John.
ROBERTS: Oberpfaffelbachen?
CHETRY: How about it?
ROBERTS: Like Winchesterton field ville (ph), right, in Mr. Deeds?
Despite rising gas prices and falling home values, the amount of millionaires in the world is growing. We'll take a look at how it's possible to grow all that wealth in such a shaky economy.
Coming up on AMERICAN MORNING, back to tap.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: There's just no need for anyone to buy bottled water.
(END VIDEO CLIP)
ROBERTS: Banning bottled water from restaurants to cities. Why you might be forced to take the tap.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: But why you want to take (INAUDIDLE) price of water.
(END VIDEO CLIP)
ROBERTS: You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
ROBERTS: It is a glamorous life for the rich and apparently it's getting better. The annual World Wealth Report by Merrill Lynch and consulting firm Capgemini Group says there are more millionaires and they're getting richer. They're getting rich quick.
It comes as million of Americans are having problems just filling their tank full of gas. Here to help sort it all out is Robert Frank. He's the author of the "Wall Street Journal's" "Wealth Report" and author of "Richistan: A Journey Through the American Wealth Boom."
Welcome back. It's good to see you.
ROBERT FRANK, AUTHOR, "RICHISTAN": Good to see you.
ROBERTS: Let's take a look at some of these statistics. We'll put them up on the screen as well; 10.1 million millionaires now in the world. Up six percent from last year with an average wealth of over $4 million.
We keep hearing about how terrible the economy is. How's that happening?
FRANK: That's right. Well, at any point in the economy some part of the economy is doing badly and some part is doing great. So those folks that are in commodities, in farming, in food and oil, those are parts of the economy right now because of prices that are doing really well. So people that are in those industries are becoming wealthy and even in the U.S. we're seeing a new rise in the number of millionaires.
ROBERTS: This latest report found that one in three millionaires still resides here in the United States. But the number of millionaires, the rate of growth of the number of millionaires in countries other than the United States, is growing very quickly. We've got some statistics on that as well. Look at this.
India, it's up 22.7 percent. China up 20.3 percent. And Brazil 19.1 percent. Why are so many millionaires now being produced outside of the United States?
FRANK: Well, as you said, the United States is still the leading producer of millionaires in the world. But the surprising thing is that countries like Russia, Brazil, India and China are the fastest growing. And a lot of that is two reasons.
One is oil. If a country is pumping out oil they're also cranking out millionaires. The other is stock markets. Stock markets are a huge creator of wealth. There is a lot of money going into stock markets and these emerging markets. They've actually done better than U.S. stock market over the past year, so that's a big creator of wealth in those countries.
ROBERTS: At the same time that the number of millionaires is growing, the gap between the rich and poor appears to be even wider than it was. Our Arwa Damon is in Indonesia where she found some startling stories about just how poor people are and what they're doing to cope. Listen quickly to what she had to say.
(BEGIN VIDEO CLIP)
ARWA DAMON, CNN CORRESPONDENT: Ardie's (ph) case is not unique. The majority of the children here are actually not orphans, but increasing numbers of Indonesian families are giving their kids up quite simply because they can't afford to feed them or put them through school.
(END VIDEO CLIP)
ROBERTS: So there she is at an orphanage in Indonesia saying a lot of these kids aren't orphans. Their parents just can't afford to keep them. How is this gap growing at the same time that this wealth is growing?
FRANK: Well, the gap is growing because we live in an economy that increasingly values technology and skills. It's sort of a winner take all economy. And a lot of the countries that are creating new wealth are even more unequal than the U.S. So in the years to come, inequality is going to grow because of the structure of our economy and globalization where the winners in a global economy amass more wealth than losers.
So the bad news is that inequality is not going away. Even in the U.S., it's probably going to increase. So that's going to be a very important political issue in the coming election cycle. ROBERTS: Robert, back to this idea that the number of millionaires overseas is being created at a much quicker rate than they are here in the United States. Why should people here care?
FRANK: Well, I think we should care because, you know, one is, how likely is it that you in America will become wealthy? The fact that tomorrow's millionaires are more likely going to come from China, India, Russia means that your opportunities in the U.S. to become wealthy are less. It also means that, you know, the wealthy are very important source of taxes, investment and spending in this country. If that growth rate slows down, that means that our overall economy slows down. If the wealthy aren't doing well, nobody's doing well.
ROBERTS: And the number of people who are becoming millionaires in this country is on the decline, right?
FRANK: It's not on the decline. It's just growing a lot slower.
ROBERTS: OK.
FRANK: It's growing at half the pace that it was last year. We'll see what happens in this year, but this year's not looking so great either. So it really speaks to the opportunity in this country to reach that great American dream of becoming a millionaire.
ROBERTS: All right. Maybe more challenging than it was in the past.
FRANK: Exactly.
ROBERTS: Robert, it's great to see you. Thanks for coming in this morning.
FRANK: Thank you.
ROBERTS: Appreciate it -- Kiran.
CHETRY: Well, a bill to outlaw gas price-gouging may be dead in the water. House Democrats failed to get the two-thirds vote needed to resurrect the measure that would make it a federal crime, imposing as much as $2 million in fine and possible jail time for violators.
Minnesota's Transportation Commissioner rejecting a report that suggests money problems may have been a factor in last year's deadly bridge collapse. The report delivered a harsh assessment of maintenance before the I-35W Bridge collapsed in Minneapolis, killing 13 people. The official tells state lawmakers that bridge safety was not compromised by funding considerations.
And Bill Clinton is ready to go to work for Barack Obama. A statement from the former president says that he is committed to doing whatever he can to help Obama get elected.
And in an exclusive interview with CNN, Senator Obama said he's going to need team Clinton in the fall campaign.
(BEGIN VIDEO CLIP) SEN. BARACK OBAMA (D), PRESUMPTIVE PRESIDENTIAL NOMINEE: Bill Clinton is one of the most intelligent, charismatic political leaders that we've seen in a generation. And he's got a lot of wisdom to impart. And so, we're going to be working very closely with him and Senator Clinton.
(END VIDEO CLIP)
CHETRY: Obama says he has not yet spoken to Bill Clinton, but plans on having a, quote, "Long conversation with him when the former president returns from overseas."
And those are the top stories making news this morning.
Meantime, Republican John McCain is pushing his energy plan in Las Vegas today. McCain flexed some political muscle yesterday in California, appearing with Governor Arnold Schwarzenegger. He tried to sell voters on his energy solutions.
Here's CNN's Dana Bash.
DANA BASH, CNN CORRESPONDENT: John and Kiran, as gas prices go higher and the election gets closer, the debate between the candidates is intensifying big time over whose ideas are best to ease voters' pain at the pump.
(BEGIN VIDEOTAPE)
BASH (voice-over): A joint appearance with Arnold Schwarzenegger and an environmental plug from California's green Republican governor.
GOVERNOR ARNOLD SCHWARZENEGGER (R), CALIFORNIA: When Senator McCain is in the White House, America will get back in the game of having a sensible, consistent and forward-looking energy policy.
BASH: John McCain tried to live up to that by arguing federal buildings and cars should lead the way in fuel efficiency.
SEN. JOHN MCCAIN (R), PRESUMPTIVE PRESIDENTIAL NOMINEE: Though I proposed to put the purchasing power of the United States government on the side of green technology.
BASH: Outside the event, protesters decrying McCain's reversal last week to support offshore drilling -- unpopular in California. Schwarzenegger strongly opposes offshore drilling.
An adviser told CNN the governor planned to make his differences with McCain known here, but instead, engaged little in the panel discussion. But McCain did get an earful on offshore drilling from another invited guest.
UNIDENTIFIED MALE: It would be 12, 15, maybe 20 years before those resources came online and got to full production. That's not going to impact the price of gasoline any time soon.
BASH: Meanwhile in neighboring Nevada -- OBAMA: So, John McCain still doesn't get it.
BASH: Barack Obama seized on this from McCain a day earlier on offshore drilling.
MCCAIN: It may take some years. The fact that we are exploiting those reserves would have a psychological impact that I think is beneficial.
OBAMA: A psychological impact. In case you're wondering, in Washington speak, what that means is, it polls well.
BASH: And he mocked McCain's idea for a $300 million cash prize for inventing an alternative car battery.
OBAMA: When John F. Kennedy decided that we were going to go put a man on the moon, he didn't put a bounty out for some rocket scientist to win.
BASH: In response, McCain pressed a new campaign theme -- Obama is Dr. No.
MCCAIN: He talks the talk, but has not walked the walk. And on this energy issue -- yes, it's easy to say no to everything. That's what Senator Obama is doing.
(END VIDEOTAPE)
BASH: Obama has, of course, proposed several energy-related ideas. But McCain campaign aides tell us what angers voters most about high energy prices is inaction here in Washington. And that Obama's constant criticism of McCain's ideas gives them an opening to paint Obama as part of the problem.
John and Kiran?
ROBERTS: Dana Bash this morning. Dana, thanks.
New this morning, New York City says many ground zero workers are not as sick as their lawsuits claim. Lawyers completed an initial review of medical records for nearly 10,000 workers.
They say as many as three in ten had only common problems like a runny nose or a cough and no specific illness was ever diagnosed. And in many cases, the records were incomplete. Lawyers for the workers say the city's review is inaccurate.
A warning for hospitals using wireless systems to track equipment. A new study says the signals could cause deadly disruptions in breathing and dialysis machines and external pacemakers. Dutch researchers found the problem during more than 120 tests in an Amsterdam hospital. An American patient safety expert says hospitals should take action immediately.
And Shaquille O'Neil is losing his badge. The Phoenix Suns star had been a special deputy with the Maricopa County sheriff in Arizona but he is being asked to hand his badge back after he used foul language in a rap video mocking his former teammate Kobe Bryant. Sheriff Joe Arpaio says if any of his deputies ever used those words, they would be fired. So, he asked for Shaq's badge back.
CHETRY: Well, more rain headed to the Midwest right now. Missouri and central Iowa could get another round of storms and there are new concerns about a weakened levee that could flood an area the size of 2,200 football field.
ROBERTS: Coming up on AMERICAN MORNING -- back to tap.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: There's just no need for anyone to buy bottled water.
(END VIDEO CLIP)
ROBERTS: Banning bottled water from restaurants to cities. Why you might be forced to take the tap.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Why do you want to pay for overpriced water?
(END VIDEO CLIP)
ROBERTS: You're watching the "Most News in the Morning."
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ROBERTS: 38 minutes after the hour. Welcome back to the "Most News in the Morning." For many of us, it's a staple of our day -- bottled water. But mayors across the country are making a push to ditch the plastic and turn on the tap.
Our John Zarrella takes a look for us this morning.
Hey, John.
JOHN ZARRELLA, CNN CORRESPONDENT: John, Kiran, the nation's mayors say their municipalities are spending way too much money on bottled water. And it's time, they say, to get back to the tap.
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ZARRELLA (voice-over): Sitting on tables, perched on a stroller, bottled water is everywhere and in everybody's hands. But many city mayors are hoping Americans will go back to the faucet.
MAYOR MARTIN CHAVEZ, ALBUQUERQUE, NEW MEXICO: That is convenience. There's just no need for anyone to buy bottled water. Again, it is a minimum of a thousand times more expensive than the perfectly healthy, safe water that comes out of the tap.
ZARRELLA: At the U.S. Conference of Mayors in Miami, they called for all local governments to stop spending taxpayers' dollars on bottled water for city functions and employees. The mayors also say too many empties end up in trash cans and landfills, causing an environmental nuisance.
Some businesses are already doing their part. At the yoga warehouse, plastic is out, filtered water, free. At the Jaguar Restaurant, the owner banned bottled water. Only carafes of filtered tap water are now served. Reaction, mixed.
UNIDENTIFIED FEMALE: I prefer bottled water. The tap water tastes different.
UNIDENTIFIED MALE: Why do you want to pay for overpriced water? You know, I drink water as a child out of a water post. You know, I grew up, you know, healthy and what-not.
ZARRELLA: The International Bottled Water Association, as you might expect, says the mayors are ignoring the industry's long history of environmental stewardship and support for recycling efforts.
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ZARRELLA: So far, the pro-tap movement hasn't punched much of a hole in bottled water consumption. Industry figures show Americans drink 8.8 billion gallons of bottled water last year. That's up nearly seven percent from 2006. And we drink more bottled water than any other beverage except soft drinks.
John?
Kiran?
ROBERTS: John Zarrella this morning. Interesting piece.
CHETRY: Absolutely. Good old tap water, back in vogue.
ROBERTS: That's what I always order at the restaurant.
CHETRY: Me, too. Well, new flooding dangers today in the Midwest. Missouri and Iowa bracing from more rain as officials watch a weakened levee along the Mississippi.
100 homes now in danger of being flooded.
Plus, a stampede in a crowded Mexico City nightclub kills 12 people. And now people are pointing fingers at the police. You're watching the "Most News in the Morning."
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CHETRY: Coming up on 43 minutes past the hour. Our Jacqui Jeras in the weather center in Atlanta for us this morning. The last thing they need in the flooded out Midwest is more rain and they may be looking at that today, Jacqui?
(WEATHER REPORT) CHETRY: That's what they say now at 6:00 a.m. We'll see what happens when midday rolls around. Jacqui, thanks.
JACQUI JERAS, CNN METEOROLOGIST: Yes, the earlier, the better.
ROBERTS: Yes. All right. North Korea says it's going to blow up part of a key nuclear plant. The worldwide resources of CNN in full effect this week. Christiane Amanpour joins us live from Beijing as she makes her way to Pyongyang.
CHETRY: Coming up AMERICAN MORNING -- kissing babies.
Can't get your newborn to an Obama rally?
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OBAMA: I'm going to kiss that one, right there.
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CHETRY: Jeanne Moss looks at a news option.
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JEANNE MOSS, CNN CORRESPONDENT: Don't forget the bubble wrap your baby.
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CHETRY: You're watching the "Most News in the Morning."
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CHETRY: Finally a song that we both agree we can love.
ROBERTS: Love that shot, too. I'm telling you, it's just like your daily trip, you know, on one of those big roller coasters. You'd almost feel the G force that's coming around the closet.
CHETRY: Yes. I wonder what it's like to watch it at home. Probably, it will serve you this morning.
Well, you know, it's common practice on the campaign trail, of course, to shake hands and kiss babies. Not the opposite. Barack Obama is not only leading in the polls but he is way ahead in baby smooching.
ROBERTS: Are you suggesting that some people are kissing hands and shaking babies.
CHETRY: You can do that one.
ROBERTS: If you can't make it to an Obama rally, you can ship your infant to get kissed by Barack or at least pretend to. Our Jeanne Moss explains how.
(BEGIN VIDEOTAPE) JEANNE MOSS, CNN CORRESPONDENT (voice-over): Hey, kid, don't you know that's the head of a potential president you're touching? Don't pull his nose. Not that Barack Obama minds.
OBAMA: After kissing hundreds of babies.
MOSS: It's routine by now. Babies adorned with Obama stickers try to nap. Parent handover the baby. The senator gives him or her a kiss and a smile. Occasionally, the parents brag about it on YouTube. But imagine what this madness feels like to the baby.
UNIDENTIFIED FEMALE: Obama! Obama! Obama!
MOSS: It's a wonder they don't all sought. Though it's true some of them do. This father of two is pretty adept at making faces. But for supporters who can't make it to an Obama event, we've got a Web site for you -- Send Barack Your Baby.
Package and ship your baby in a well-padded box. Fill out the packing slip. What would you like Senator Obama to do with your baby? Kiss? Hug? Give hope? Here's hoping you're not taking this Send Barack Your Baby stuff seriously.
Frequently asked questions include, how will you return my baby? Most babies are back home within 14 business days. Not quite as quick as an in-person kiss.
OBAMA: I'm going to kiss that one, right there. That's a cute one there.
MOSS: A 22-year-old Web designer named Karim Shaya (ph) dreamed up this one note joke Web site. He's a lukewarm Obama supporter.
(on camera): We've had no reports of anyone actually sending a real infant, but if you do, don't forget to bubble wrap your baby.
(voice-over): OK, so shipping a baby is out of the question. But people really do let their babies body surf to Obama.
OBAMA: There you go. Start passing the baby up.
MOSS: Kids go from hand to hand on the way up, then hand to hand on the way back. Right away, we're not giving John McCain equal time in the baby kissing department because we can't find examples. We did once interview a guy who had his baby pose with every candidate he could. And he said McCain was a natural, even when baby Dahlia cried.
UNIDENTIFIED MALE: He made a joke that there goes another vote.
MOSS: And though the babies won't remember any of this, for the parents it's a four exclamation point moment.
UNIDENTIFIED FEMALE: Obama! Obama! Obama!
MOSS: Jeanne Moss, CNN, New York.
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ROBERTS: Deadly stampede. New video of teens packed in a nightclub like sardines. Protesters flash police with paint accusing them of blocking the exit.
Plus, going viral.
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UNIDENTIFIED MALE: Is the ramp really that big next to the Statue of Liberty?
UNIDENTIFIED MALE: Bigger, bigger, bigger.
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ROBERTS: A spoof designed to get you revved up for a hot new car. You're watching the "Most News in the Morning."
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UNIDENTIFIED MALE: In the middle of nowhere, I saw this gigantic thing looming in the horizon. Bigger and more bizarre than anything I'd ever seen. My curiosity led me to the tiny village of (INAUDIBLE).
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CHETRY: A small Bavarian town with a big name and a dream to catapult a BMW from Germany to the U.S. It's a 30-minute mockumentary that's made its way across the Web. In fact, 10 million hits later. BMW took credit for it and admitted it was fake.
Joining us now is Teressa Iezzi. She's a columnist for "Adage" and the editor of "Creativity" magazine. So we have two things working here.
Thanks for being with us, by the way.
TERESSA IEZZI, COLUMNIST FOR ADAGE: Thank you.
CHETRY: We have the viral video which, you know -- these are videos that catch the attention and they get send everywhere. And then, what they're calling these gorilla marketing campaigns where through the viral video advertising, people see things and may not even know they're being sold a product. In this case, BMW at first denied that they made this. Correct?
IEZZI: That's right. I think it's -- and it's symptomatic of a new kind of marketing where advertisers are seeking to create things that are sucking people in and getting them compelled. And they want to seek something out rather than pushing messages at them.
They want people to go and find their messages and interact with them and really get involved with them.
CHETRY: So does this sell more cars for BMW?
IEZZI: I think ultimately it does, because brands now want to make an emotional connection with consumers. Again, instead of just telling them -- oh, you know, a price point or something like that, create a bit of content that's really going to compel them. Create that emotional connection and get them interested long term in the brand.
CHETRY: What about the factor of deception here? You know, you're basically watching this mockumentary. And whether you know it's fake or you don't know it's fake at first, you might not know that BMW is trying to sell you a car. Is that deceptive?
IEZZI: I don't think so. I think people are pretty sophisticated now in terms of, you know, as soon as you see something weird online, you see a crazy viral, you think, I wonder if that's a marketing ploy.
So I think people are looking for it. And as long as it's done well, as long as there's entertainment value and, you know, you're not offending anyone, I think it's OK.
CHETRY: So you're saying the point is instead of hitting people over the head with messages, it's more they need to find them themselves. So how does that factor into, you know, some people may watch this and not even know that BMW is what they're supposed to be buying. So how does it really factor into more sales?
IEZZI: I think that in a campaign like this, a lot of the really successful viral campaigns, there is ultimately the brand message there. Whether you have to seek it out or whether it's more obvious. And I think that that really, again, creates that emotional connection. And makes people feel good about the brand.
I think that, you know, there's so many products that are parody products. So how do you distinguish yourselves? You have to make people like you, basically.
CHETRY: There's also the controversy element involved in some of these. And in fact, I want to show some video of this ad. This is an ad that shows teens speed dressing. They're trying to time themselves here to see how fast they can get dressed.
It insinuates that they're dressing quickly, perhaps if they were to be caught, you know, by their parents. So, in a way, sort of insinuating teen sex taking place. And it ends with the JC Penney logo.
JC Penney says we had nothing to do with it. They're ad firms says we had nothing to do with it. Yet, they're benefiting. It actually won an award and they're benefiting from this ad.
How deceptive is that or is that ethical that they can in one, you know, breath claim they didn't have anything to do with it, but in the other -- hey, they're benefiting? IEZZI: I think the jury is still out right now whether or not JC Penney had anything to do with it. They say they didn't. I don't think they did. The agency says they didn't have anything to do with it and what's unethical about this is the fact that it won an award.
Awards are meant to be for campaigns that actually ran. And, you know, it's harder to get something through a real -- the real advertising process. So I think that's what people are up in arms about this campaign, this spot, which is actually kind of interesting. And, as you said, actually ended up working for the brand. People like it.
CHETRY: But their ad firms made this -- this deal about saying that they've pulled it and that they apologize as well. But the point is, is you can't pull anything from the Internet. It's there forever.
IEZZI: And it's out there.
CHETRY: It's still reaching people so they're benefiting.
IEZZI: They are benefiting. And I think that in the ad industry, the agency is the one that's not benefiting now, because, again, if it hadn't won an award I think it all would have been fine. But the fact that it did win an award, I think that people see that as unethical.
CHETRY: Very interesting. All right, Teressa Iezzi. The columnist for "Adage" editor. Thanks for being with us this morning.
IEZZI: Thank you.
CHETRY: John?
ROBERTS: It's 59 minutes after the hour. We've got breaking news to tell you about this Wednesday morning. Missing in the mountains. Search teams are looking for a group of teenagers and two adult chaperons in the California Mountains. They were last seen on Sunday. The group is from outward bound. We're going to continue to follow the story and we'll pass it along to you when we get more information.
More breaking news this morning. A deadly workplace shooting overnight. Police in the Evansville, Indiana, area say an employee shot and killed four coworkers and then himself at a plastics plant. About 35 people were working the overnight shift at the time.
