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American Morning
Congress Working to Lower Gas Prices; Same-Sex Marriage Case; Obama Looks to Help Clinton Pay Off Campaign Debt; Bill to Make Price Gouging a Felony Fails to Pass; Police Blamed for Club Deaths in Mexico City; North Korea Nukes to be Blown Off on Friday; McCain and Obama Debate on Energy Policy
Aired June 25, 2008 - 07:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JOHN ROBERTS, CNN ANCHOR: 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. Police say it started with an argument between the gunman and a supervisor.
Plus the forecast, rain adding insult to injury. Much of the Midwest could see rain today. Almost 1,000 National Guard troops, inmates and volunteers are still sandbagging the Mississippi north of St. Louis.
And paying down the debt. Barack Obama asking his major donors to help Hillary Clinton pay off at least $10 million of the debt from her failed presidential campaign. Obama's directive comes two days before he and Clinton meet in Washington.
Our Candy Crowley is following the story for us from the nation's capital.
CANDY CROWLEY, CNN SR. POLITICAL CORRESPONDENT: Good morning, John and Kiran. Slowly but surely those sharp edges in the relationship between Hillary Clinton and Barack Obama are starting to soften. A source confirms that Obama has asked members of his National Finance Committee, more than 300 of them, to help Hillary Clinton pay down her $10 million campaign debt. The gesture cannot erase the entire debt, but it is a welcome movement for two candidates who are now settling in to new roles.
(BEGIN VIDEOTAPE)
CROWLEY (voice-over): Except for cheering Senate staffers, it was an ordinary day on Capitol Hill as Hillary Clinton returned from an extraordinary primary.
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.
CROWLEY: It begs the question, is the Senate floor big enough when all the world has been your stage? Nothing signals she will be number two, including her.
CLINTON: It is not something that I think about. This is totally Senator Obama's decision, and that's the way it should be.
CROWLEY: So whether (ph) Hillary Clinton --
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: Senator Clinton has been a larger than life figure in Democratic politics and American politics.
CROWLEY: Barack Obama's plans are as grand as they are vague.
OBAMA: 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.
CROWLEY: At her press conference, Clinton was on track, all party all the time.
CLINTON: We're going to work very hard to elect Senator Obama our president, and we're going to work very hard to add to our numbers here in the Senate under the great leadership of Senator Reid, and my friend and colleague, Senator Schumer.
CROWLEY: And after 24 hours of questioning when and whether Bill Clinton would endorse Obama, his office tried to douse the stories. "President Clinton," said a spokesman, "is obviously committed to doing whatever he can and is asked to do." An uneasy truce may be near.
A source says Hillary Clinton and Obama have talked about getting her husband and Obama together.
(END VIDEOTAPE)
CROWLEY: A close friend of the Clintons predicts Bill Clinton will spend most of his time in foundation work, the kind of good works that won him such praise in his post presidency. As for Hillary Clinton, the friend says she'll work like hell in the Senate -- John, Kiran.
KIRAN CHETRY, CNN ANCHOR: And thanks, Candy. In an exclusive interview with CNN, Barack Obama says he plans to work with both Bill and Hillary Clinton on the campaign trail saying he needs their help. He also had some high praise for Hillary Clinton.
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: 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 the votes, but the passion and support of so many millions of people.
We are going to be working closely together over the next couple of weeks to put together a plan. They're going to want to campaign actively on behalf of the Democratic ticket. I am going to need them. 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 to make sure that not only do we win in November, but we actually govern in a way that delivers on the promise of universal health care, good jobs and good wages, clean energy, lower gas prices. The things that are really going to make an impact on people's lives.
(END VIDEO CLIP)
CHETRY: And Barack Obama did not hint at a vice presidential choice but said that he wants to make Hillary Clinton a key partner on issues, especially health care.
ROBERTS: A gas price gouging bill may be dead and gone for good this time. House Democrats tried to bring back a bill that would have made it a federal crime. Gougers would get a $2 million fine, maybe go to jail, but lawmakers did not get the two-thirds vote needed to push it through.
But some relief could be in sight, maybe as soon as this summer. Some analysts are nudging Congress to go after the oil speculators for driving prices to record highs.
Our Brianna Keilar was following the hearing. She's live in Washington this morning. Brianna, there's still a difference of opinion on how much of an impact speculation is having on the price of oil. But certainly, some members of Congress were pretty certain about it yesterday.
BRIANNA KEILAR, CNN CORRESPONDENT: Yes, there is a difference of opinion but I tell you, John, when someone tells you that you're going to save maybe a couple dollars a gallon when you fill up your car, it's really music to your ears. And some oil analysts testifying before Congress this week say, look no further than lawmakers 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 if 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 out of the reach of U.S. regulators. So, John, there are those detractors that you mentioned.
ROBERTS: Brianna, does it look like we could see legislation, and if so, when?
KEILAR: Well, we could see it relatively soon. Congressman Bart Stupak of Michigan, he's one of the strongest advocates for Congress, stepping in here. And he says that he thinks there could be a vote in the House sometime next month, John.
ROBERTS: All right, we'll see. Brianna Keilar for us this morning from Washington. Brianna, thanks.
CHETRY: Police in Mexico City are being blamed for a nightclub stampede that killed 12 people. Hundreds of teens went to the Mexico City club to celebrate the end of the school year. When police raided the club kids headed for the exit, but witnesses say the police wouldn't let them leave.
Our Harris Whitbeck has the story.
(BEGIN VIDEOTAPE) HARRIS WHITBECK, CNN CORRESPONDENT (voice-over): This video released by Mexico City officials Tuesday shows police blocking the only exit of the News Divine Disco. Twelve people suffocated or were crushed during the police raid there Friday, including three police officers.
Some 500 teenagers were packed into the club in a working class district of Mexico City celebrating the end of the school year. Police arrived to look into underage drinking at the club. Prosecutors charged they botched the operation, blocking the exit, and causing a panic inside the club that prompted the young patrons to stampede.
UNIDENTIFIED MALE (voice of translator): The witness called attention to the attitude of the police who are trying to push the youths back into the club while the youths were trying to get out. Those police not only tried to keep the youth from getting out, but it is clear they were pushing the kids back inside.
WHITBECK: Seventeen police commanders and other top officers have already been asked to resign from their posts. Mexico City mayor, Marcelo Ebrard, promised a full investigation and ordered the release of the video taken by police at the scene to prove the officers involved would not be protected.
But that wasn't enough for survivors of the stampede. Many of them gathered outside the now closed nightclub to stage a protest against the police. One man splashed red liquid on a police officer. Others chanted murderers, murderers. One protest sign read, "Wanted, the chief of the child killing gang," known as the police.
Harris Whitbeck, CNN, Mexico City.
(END VIDEOTAPE)
ROBERTS: It's nine minutes after the hour, and coming up at 7:11, that's the time, not your local convenience store, charged with fraud. The ex-boyfriend of Hollywood actress Ann Hathaway faces charges after he reportedly lied about his connections to the Pope.
CHETRY: I'm sure there's a lot of stuff going on at 7:11 as well.
Then live at 7:18, we're in Beijing. Christiane Amanpour on her way to North Korea where she'll be one of a select few getting a chance to watch a nuclear blow up.
ROBERTS: And at 7:35, two men get hitched. No one knew the bride wasn't a lady until he came in for a divorce. We'll tell you about it. You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
ROBERTS: Thirteen minutes after the hour. Welcome back to the "Most News in the Morning."
A sharp drop for home prices in 20 major cities, and economists are expecting more declines in the next few months. A new report out shows a more than 15 percent drop in April of this year compared to April 2007. The biggest declines were in Las Vegas and Miami.
And inflation is hitting car tires. The price of tires has risen between five and 10 percent so far this year because of high oil and rubber costs. That's according to "USA Today." That is leading some people to put off buying new tires, driving the old ones a little bit longer. And as we all know, that can be very unsafe.
He dated Hollywood starlet Ann Hathaway, partied with Bill Clinton. Now, Raffaelo Follieri is facing fraud charges. He was arrested in New York on charges that he posed as the Vatican's U.S. representative to get people to invest in his real estate company -- Kiran.
CHETRY: All right. Thanks, John.
Meanwhile, Jacqui Jeras has been tracking the forecast for us. Unfortunately parts of the country that do not need rain because of all that devastating flooding are due to get it, and more than we thought.
JACQUI JERAS, AMS METEOROLOGIST: Yes, I know. The rain has just been incredible, Kiran. In fact, we've seen as much as eight inches fall in north central parts of Missouri. So really, you know, just adding insult to injury here, unfortunately.
The river is really cresting today in a few of the spots that we've been watching like Winfield, Missouri, where the levee was breached a little bit yesterday. They had a little slide on the levee, so they had to frantically sandbag that thing back up. And it's so soft and so soggy they say it's just such a delicate situation it's not going to take much for that levee to blow. And even a two-inch wake from your boat or from your car could be the difference between saving southern parts of Winfield or complete catastrophe. So we'll continue to monitor that situation very closely.
Let's show you where the rainfall is and where the worst of it is at this hour. We've got this big cluster of storms here. We call this an MCS or a Mesoscale Convective System. There is a word you can impress your friends with today, but basically what it's doing is bringing in downpours and the rain to two to four inches.
Here's the Mississippi River and the real flooded area. So this is all coming in places like Quincy, Burlington, key (ph) cut down here that have been dealing with the devastation already. And there you can see, we put our little icons on there, where our system is estimating about two to four inches in many of those cities.
This is all heading up towards the Chicago land area, guys. But it looks like once we get through this we'll have drier weather at least until Friday -- Kiran, John.
CHETRY: Jacqui, thank you.
Well, John McCain and Barack Obama battling over energy policy. We're going to get a look at both of their plans to go green. ROBERTS: A virtual goldmine in Iraq. Billions to be made in oil and just about everything else, but our government says other countries are cashing in while our companies are staying home. You're watching the "Most News in the Morning."
(COMMERCIAL BREAK)
ROBERTS: It's almost 18 minutes after the hour. Top videos right now on CNN.com. Most popular, a court says New York City's naked cowboy can sue the maker of M&M's candy for trademark infringement. Robert Burck is a Times Square fixture playing the guitar dressed in white cowboy hat, white cowboy boots and white underpants.
In February, the street performer filed a lawsuit after the candy maker released a video billboard showing a guitar-playing blue M&M dressed in pretty much the same outfit.
CHETRY: White underpants and all. How about that?
All right. Well, also in Strasburg, Pennsylvania, they're considering a ban on allowing people to put couches on their front porches. The city says it's a fire hazard. They weren't giving out tacky points. It was just the fire hazard.
The homeowners, on the other hand, say, hey, it's my porch. If I want a couch out there, I can have one.
ROBERTS: And extreme makeover weight loss edition. It's a story that you saw right here yesterday morning.
Japan fighting fat by forcing people to lose weight or their employer gets slapped with a hefty fine. You're watching the "Most News in the Morning." We are back in 90 seconds.
(COMMERCIAL BREAK)
CHETRY: Major steps expected this week in the nuclear standoff with North Korea. The North says it will blow up part of the key nuclear reactor on Friday.
Chief international correspondent Christiane Amanpour will be there for the big event Friday. Right now, the worldwide resources of CNN bring us all the way to Beijing live where Christiane is standing by for us as well. Good morning.
CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT: Good morning. Good evening from here in Beijing.
Actually, Beijing is a key point along the step of this process because tomorrow the North Korea is to hand over their nuclear declaration, the declaration of all their nuclear-related activities to China, which chairs the so-called six-party talks including the United States, Russia and South Korea and Japan. After that President Bush is expected to take North Korea off the U.S. list of states that sponsor terrorism and to ask Congress to remove North Korea from some of the sanctions that have been legislated. So it really is a big breakthrough, a milestone and a long way from that day in 2002 when President Bush called North Korea the axis of evil. North Korea responding by kicking out inspectors and test firing a nuclear weapon.
CHETRY: You know, and Christiane, a lot of people are wondering what happens after this. How can we be sure that North Korea is actually going to give up its nuclear arsenal?
AMANPOUR: Well, once we get to Pyongyang on Friday and see the implosion of this cooling tower, which is more than just symbolic, it's -- many analysts believe that it's the real demonstration of intent. Then there has to be very serious verification and lengthy verification because it's not just disabling of Yongbyon that's happening right now and by all intents and purposes happening correctly.
U.S. officials are looking at the process and helping in that process. But then, Yongbyon and any other facilities have to be dismantled. The plutonium that's gone towards making bombs have to be handed over and all sorts of incredibly complicated procedures to finally denuclearize North Korea.
In addition, there are concerns that there may be some second parts to a weapon such as highly enriched uranium. The U.S. or others don't have full details on that, and North Korea is not expected to make that clear in the declaration it gives over tomorrow other than to acknowledge U.S. concern. The U.S. hoping that that will be something they can probe in the next phases following this one -- Kiran.
CHETRY: That will certainly be a fascinating event for you to witness, though, Christiane. And we'll be getting details from you after that happens. Thanks for running up this morning.
ROBERTS: It's 23 minutes after the hour. Coming up on AMERICAN MORNING, got you. Two men get married in a state that does not allow gay marriage, but the commissioner says one of them really looked like a lady.
And if at first you don't succeed, we'll tell you who thinks Hillary Clinton may try for the White House again. That's ahead on the "Most News in the Morning."
(COMMERCIAL BREAK)
ROBERTS: Welcome back to the "Most News in the Morning." Let's check our political ticker now.
A new poll shows Barack Obama has got a double-digit lead over John McCain. The "LA Times"/Bloomberg poll says Obama leads McCain 49 percent to 37 among registered voters. And when you include third party candidates, Ralph Nader and Bob Barr, Obama's lead jumps to 15 points.
John McCain will travel to Colombia and Mexico next week. He plans to meet with Colombia's president to discuss drug trafficking and free trade. He says his campaign will pick up the tab for the trail.
Nancy Pelosi doesn't think that Hillary Clinton is done, not just yet. The speaker of the House said she thinks that Clinton may run for president again, but Pelosi stopped short of blaming Clinton's loss on sexism.
And for more up to the minute political news, just head to CNN.com/ticker.
CHETRY: Well, both presidential candidates are hitting the road touting their energy plans. Joining us from Washington is Republican senator from Kansas, Sam Brownback. He's the national co-chair of the McCain campaign. We'll talk a little bit about Senator McCain and what he thinks will help in terms of soaring gas prices and energy costs. Glad to have you with us, senator. Thanks for being here.
SEN. SAM BROWNBACK (R), FMR. PRESIDENTIAL CANDIDATE: You bet. Good morning.
CHETRY: You know, both you and Senator McCain support offshore drilling. McCain said that it may not lower prices immediately, and then Obama, Senator Obama, pounced on that statement. Let's listen to what both of them said and I'll have you weigh in.
(BEGIN VIDEO CLIP)
SEN. JOHN MCCAIN (R), PRESIDENTIAL CANDIDATE: It may take some years. The fact that we are exploiting those reserves would have a psychological impact that I think is beneficial.
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: A psychological impact. In case you're wondering, in Washington speak, what that means is it polls well.
(END VIDEO CLIP)
CHETRY: Why are we reopening the offshore drilling debate if it's not going to immediately lower gas prices, people that are suffering now?
BROWNBACK: Well, it is going to lower gas prices. It may not be immediately, although I think it will have an immediate effect. I think the reason we're discussing this is we've got to increase supply. And this is a key place and the key way that we can do that and I think we need to do it.
CHETRY: We can increase supply temporarily. The demand is still there and we're still using up oil at, you know, at a much larger rate than we're producing it.
BROWNBACK: Well, we are. But I think this is the combination that John McCain offers. What you're seeing Barack Obama do on the other side is say, I want to increase taxes. I want to increase your cost. That's how I'm going to get you to conserve.
That's not a way to increase in conservation is to increase cost. I mean, it will have a good effect as far as reducing the demand but that's not what the American people want. They want more supply. They want more conservation. That's the overall plan that John McCain offers that Barack Obama does not.
CHETRY: You know, and McCain is also calling for this $300 million prize to whoever can develop a better car battery.
BROWNBACK: Yes.
CHETRY: Something that can leapfrog over what we're doing right now.
BROWNBACK: Yes.
CHETRY: Let's listen to what his challenger said about that.
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: 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. He put the full resources of the United States government behind the project.
(END VIDEO CLIP)
CHETRY: Why is it a better idea to put any innovation in the hands of an entrepreneur as opposed to the government?
BROWNBACK: Because it works. And I think if you look at the American economy, you look at the American system, you put an incentive. You put a challenge out in front of the American public, they respond to that. Individuals respond to that.
And plus, John McCain is also going to invest in the research and technology to do it. Again, you look on the other side. What is Barack Obama's plan? And it's generally to increase gas prices. It's a windfall profits tax. It's more regulation which will increase cost.
I think if you look at these two and you compare them, the one that works within the American economy, the American society is what John McCain is talking about. Engaging the private sector. Giving the incentives. Talking to people and giving them a sort of challenge to move this on forward. And that's the approach that will actually work.
You got to increase supply, more conservation. John McCain is about that. Barack Obama -- more taxes, higher prices.
CHETRY: You know, you're speaking about incentives. Some of the incentives for consumers to actually make it worth their while to be more energy efficient have expired. For example, people used to get credits for getting hybrids. Why? You're a senator and so is John McCain and Senator Obama. Why isn't more being done in the walls of Congress now to try to alleviate some of the strain?
BROWNBACK: I agree. We need to do that. In my opinion, we have two hybrid cars. They're more expensive. But also they're much more energy efficient. And it's an good thing for us to be able to do to incentivized that sort of system. I would we could get together a bipartisan energy bill. Right now with the Democratic leadership in the Senate, we have not been able to craft things on a bipartisan basis because they won't reach out and for as far as work together on these sort of topics. Plus, we need to get to more flex fueled vehicles. I want to see us have half of the fleet made in the United States, sold in the United States by 2012 be flex fueled vehicle. This is something John McCain's pushing as well. So you're not hooked to gasoline. We also have the option of ethanol and methanol for other options rather than just gasoline.
CHETRY: And that's not working out so well for the U.S. Postal Service. I mean, didn't they spend a lot of money buying these flex fuel vehicles? They can't use them because they can't fill up at the pump?
BROWNBACK: Well, that's the whole issue. You've got to get infrastructure. But as you get more and more cars out there in the fleet you get more and more infrastructure and response for as far as from the gasoline companies. Same way in my home state. There's a few flex fuel pumps but not enough. More coming on. But as you get more cars out there in the fleet, you'll get more response from the infrastructure. Those are things that we really have to do. And we've got to respond to this sort of situation. It's hurting our economy. It's hurting the American people. It's hurting people in their pocket. But people are not able to go on vacations because they can't afford the gasoline. We've got to get other options, we've got to get more supply. Which is what you get from John McCain and not just more taxes, that you get from Barack Obama.
CHETRY: All right. Senator Sam Brownback, thanks for joining us today.
BROWNBACK: Thank you.
CHETRY: I want to let our viewers know we're also going to hear from the Obama camp. We're going to get a reaction on the energy policy from Barack Obama's side with Gov. Bill Richardson, former energy secretary. He's going to join us in about 20 minutes. John.
JOHN ROBERTS, CNN, ANCHOR: It's 31 and a half minutes after the hour. Here's what's making news this Wednesday morning. Obama responds. The democratic presidential nominee saying evangelical leader James Dobson was "making stuff up" when he accused him of distorting the bible. You heard it yesterday Dobson used his focus on the family radio program to accuse Obama of "dragging biblical understanding through the gutter."
Money wasn't a factor. Minnesota's governor saying money problems didn't compromise bridge safety. Governor Tim Pawlenty says there's no evidence so far that shoddy maintenance led to the I-35W bridge collapse last year. Thirteen people were killed in that spectacular collapse.
And Americans now helping out in the search for survivors at the capsize ferry in the Philippines. More than 800 people are missing. A Philippine Coast Guard officer says there's a slim chance of finding survivors inside the vessel.
Those are the top stories making news this morning. To Iraq now or it's a buying opportunity that America may be missing out. The State Department says Iraq needs billions of dollars in investment to overhaul its giant oil industry and its entire infrastructure. Other nations are already getting in on the ground floor, so why aren't we? State Department correspondent Zain Verjee is life for us this morning in Washington. Good morning, Zain.
ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT: Good morning, John. The U.S. could really be missing the boat here. So, if you're looking to invest with some risk and the chance of a huge return, Iraq's saying, try us.
(BEGIN VIDEOTAPE)
VERJEE (voice-over): Iraq is on the verge of a business boom. A billion dollars in foreign investment will pour in this year.
HADFEL AL-HASSAR, IRAQI COMMAND CENTER ATTACHE: There is a lot of opportunities here.
VERJEE; Most of the money is coming from investors in the Gulf, Europe and Asia. The biggest fear for the U.S.?
LT. GEN. DANIEL CHRISTMAN (RET.), U.S. CHAMBER OF COMMERCE): American companies will miss out.
VERJEE: The Bush administration is pushing American companies to get involved in Iraq.
LAWRENCE BUTLER, STATE DEPARTMENT: When the market opens, it's going to open and people who aren't ready to exploit the opportunities will be left behind here. Roads, hospitals, electricity, construction. The opportunities are huge as Iraq rebuilds its crumbled infrastructure. Pictures of suicide bombings and killings of U.S contractors have scared away a lot of U.S. companies. Iraqis acknowledge the risk but say security is improving.
AL-HASSAR: I would like for our friends here to go to Iraq. Test the water.
VERJEE: The U.S. Chamber of Commerce is taking about a dozen U.S. companies to Irbil in northern Iraq this week to check out business opportunities in areas like housing and technology.
CHRISTMAN: Getting American companies there to visit with their Iraqi counterparts, to see on the ground the conditions that have changed, I think is probably the best way to demonstrate to American firms that Iraq is open for business.
VERJEE: The U.S. government says northern Iraq is growing up to 25 percent a year. A great investment for American companies and an equally big payoff for Iraqi stability. A politically strong and secure Iraq means better odds for U.S troops returning home sooner.
(END VIDEOTAPE)
VERJEE: And the biggest investment potential in Iraq, of course, John is oil.
ROBERTS: And Zain, I think it's just stunning to many people to think of the amount of money that we have poured into Iraq and other countries are getting in there and then taking advantage of all this. What is the administration doing about oil investment in Iraq?
VERJEE: Well, what they're really trying to do is just push forward with a lot of those oil deals between U.S. companies and Iraq. But what's happening though is some of the democratic senators are saying those oil deals with U.S. companies shouldn't go through right now until the Iraqis agree amongst themselves on how to share oil revenues. What they're saying, John, is that they're arguing that with the U.S. spending hundreds of billions of dollars to stabilize Iraq, you get backroom deals on oil and more frustration and sectarian violence and disenchantment within Iraq. And that's only going to lead to more violence and more U.S. deaths.
ROBERTS: But looking at your report though it seems to suggest if U.S. companies don't get in on the ground floor somebody else is going to swoop in there and do it?
VERJEE: Exactly. That's with the non-oil companies. But the issue here for many of these senators is oil. And that's been a major sticking point between Iraqis themselves, between the Sunis and the Shias and the Kurds. They're saying you've got to fix the oil law. Share the revenue. Then we'll do business with you.
ROBERTS: All right.
VERJEE: The Bush administration is saying we need to just do it now.
ROBERTS: All right. Zain Verjee for us this morning. Zain, thanks very much.
CHETRY: Getting around to gay marriage ban. A transgender couple sparking a new debate in 48 states where it's still illegal. They were able to fool one state into giving them a marriage license because they look like a bride and groom. Carol Costello has more.
(BEGIN VIDEOTAPE)
CAROL COSTELLO, CNN CORRESPONDENT (voice-over): We've come a long way, baby. Marriage isn't as simple as it once was. In California and Massachusetts, men marry men and women wed women. And if you tuned into Oprah recently, men who were once women are married and pregnant. Scenarios leading to some confusing times in 48 states without same-sex marriage laws. Virginia is wrestling with a case of that now. Same sex marriage violates Virginia's constitution. Yet two men managed to get married in Norfolk. This woman told our affiliate one of them was her brother.
UNIDENTIFIED MALE: Apparently he was dressed like a woman?
UNIDENTIFIED FEMALE: That's probably true.
UNIDENTIFIED MALE: Tell me about that?
UNIDENTIFIED FEMALE: Well, I have nothing to say on that.
COSTELLO: This isn't the first time Virginia has wrestled with this problem. Norfolk marriage Commissioner Reid Carawan.
REID CARAWAN, NORFOLK MARRIAGE COMMISSIONER: He looked like a female. Had the license. Then when the guy came back and wanted a divorce later, found out he was a female.
COSTELLO: In the latest case, the bride, 18-year-old Justin McCain dressed as a woman and called himself Justine. It wasn't until he returned to court to legally change his name to something more feminine that officials caught on. Now Virginia authorities may press charges.
MARA KEISLING, NATIONAL CENTER FOR TRANSGENDER SEXUALITY: That's ridiculous, mean spirited. And frankly if I were a resident of that county I think I'd be embarrassed. Hopefully the prosecutor has much more important things to do than to pick on some poor 18-year-old who just wanted to get married.
COSTELLO: It's unclear if McCain is in the process of becoming a woman. He's in hiding. But Rex Davis, the clerk of Newport News circuit court told our affiliate, "I have spoken with him and told him same sex marriages are not legal in Virginia. He told me he thought they were. I told him to bring me the marriage certificate and that would be a favorable step in the situation." He has yet to return it.
Virginia has taken steps to make sure there are no future misunderstandings. Instead of couples listing their names beside bride and groom on their marriage license applications they now will list their names beside female applicant and male applicant.
(END VIDEOTAPE)
COSTELLO: In case you're wondering, most transgendered people go to court to legally change their sex on their driver's licenses and their birth certificates. That way they usually don't have a problem getting married in any state. John, Kiran.
ROBERTS: Right. Carol Costello this morning. The power of prayers. Studies saying most Americans believe it can help heal. Our Dr. Gupta tells us what religion can do for your health.
And Ali Velshi is up in the tar sands of Alberta. Filling in for him this morning, Allan Chernoff is watching your money for you. Good morning, Allan.
CHERNOFF: Good morning. We're going to talk about home prices. They keep on sinking around the nation and economists say we're not near the bottom. I'll have that coming up ahead on the most news in the morning.
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ROBERTS: Welcome back to the most news in the morning. With gasoline prices above $4 a gallon Americans are changing their ways. Drivers bought 2.7 percent less gasoline last week. That's according to the folks at MasterCard. It is the ninth straight week gasoline demand fell compared to a year ago. And maybe because of that falling demand we see prices going down just a little bit. Price of gas fell slightly again this morning for the third straight day. The new national average a few tenths of a penny below $4.07 a gallon, that's according to AAA. But that's still an outrageous price for a gallon of gas.
CHETRY: It sure is. Last year at this time we were at about $3 a gallon.
ROBERTS: The good old days.
CHETRY: The good old days. We're probably complaining back then, weren't we? Well, you know what else is falling in terms of prices? Home prices unfortunately. And Allan Chernoff joins us now. He's in for Ali Velshi who's on assignment. People were hoping they could wait out this drop. It's just getting worse.
ALLAN CHERNOFF, CNN BUSINESS CORRESPONDENT: You know, you're getting a big savings now in gasoline. Maybe you want to take some of that money and buy a home, perhaps.
ROBERTS: Take your two tenths of a penny.
CHERNOFF: There you go. Right. That's the good news with this. If you're in a market to buy a home this is good news. If you're trying to sell, well not very good news. Home prices are plummeting. The latest data according to Standard and Poors, Case Shiller, have a look at that. Home prices plummeting down more than 15 percent. And this is a survey of the 20 biggest cities in the nation. All 20 cities we saw a decline over there. So that is significant. Very, very important. The biggest declines are in the cities that had the biggest booms.
Let's have a look here. Vegas, Miami, down 27 percent. Imagine that. Just during a 12-month period. Phoenix down 25 percent. You know, a few years ago these cities were seeing gains of 50 percent a year in housing. Well, boom, now the bust in housing. And economists say this is not even close to the bottom.
Here's one indication of why mortgage applications, this number just out, mortgage applications down in the latest week, down by nine percent for the latest week, year over year, down 25 percent. Kiran, a lot of these homes are just sitting and sitting on the market.
CHETRY: That's right. And you know, a lot of people are choosing to take their homes off the market or wait it out hoping that it's going to get better.
CHERNOFF: Yes, you hope. You hope and that's why a lot of economists say we're not close to the bottom. Because in housing it's so different than the stock market. People panic in the stock market. A stock can plummet and just collapse. In housing, you know, it takes a while to reconcile with the idea that, hey, I'm not going to get a million dollars for my home anymore. So, you know, it takes a while. People gradually lower their price and we're seeing the gradual decline over here. The numbers are big.
ROBERTS: All right. Allan, thanks very much for that. We'll see you back for "Issue number one" at noon today as well.
CHERNOFF: Excellent.
ROBERTS: All right, looking forward to it.
It's 45 minutes after the hour. Senator Hillary Clinton gets back to work on Capitol Hill after a two-week vacation. She was greeted by cheers and high fives from her colleagues and by this top ten list from David Letterman.
(BEGIN VIDEO CLIP)
DAVID LETTERMAN, HOST, "LATE NIGHT WITH DAVID LETTERMAN": Top ten things overheard on Hillary's first day back at work. Number ten, nice of you to show up. Number nine, did you win? Number eight, we chipped in for a welcome back pants suit. Number seven, should I take the madam president name plate off your door. Number six, Hillary's choking another superdelegate. Number five, on the bright side you can once again partake in endless debates about agricultural subsidies. Number four, Senator Clinton please stop throwing wads of paper at Senator Obama's head. Number three, I can't believe your shrill message of fear didn't resonate. Number two, please stop taunting her, Senator Kerry. And the number thing overheard on Hillary Clinton's first day back at work, we'll begin as soon as Senator Craig returns from the restroom. There you go.
(END VIDEO CLIP)
ROBERTS: Now that she's back at work Senator Clinton says she's going to be the best senator that she can possibly be and try her hardest to help Senator Barack Obama get elected. Apparently they were playing ping pong in her office yesterday as a joke when she came back.
CHETRY: See that. How about it? And he had to get a Senator Craig dig back in too. Good old, Letterman.
Well, you're watching the most news in the morning. Iraq war veteran. Given a drug a to help him quit smoking as part of the study. Well, he says the drug made him crazy and that no one warned him about the side effects. We'll have his story.
(BEGIN VIDEOTAPE)
ROBERTS (voice-over): Coming up on AMERICAN MORNING, all revved up. The 30-minute documentary that turned out to be a work of fiction.
ALINA CHO, CNN, CORRESPONDENT: So if this whole thing fake and you're not telling your customers it's fake, is that really a good idea? ROBERTS: Inside the spoof designed to literally launch a new car.
UNIDENTIFIED MALE: Is the ramp really that big next to the Statue of Liberty?
UNIDENTIFIED MALE: Bigger, bigger.
ROBERTS: You're watching the most news in the morning.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
CHETRY: We have some insight this morning on the power of prayer. A study from the Pew forum on religion and public life finds that nine in ten Americans believe in god. Three quarters of Americans pray at least once a week and two fifths meditate once a week. So, what effect does all of that on our health. CNN's chief medical correspondent Dr. Sanjay Gupta joins us live from Atlanta this morning. Great to see you, Sanjay.
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Good morning.
CHETRY: So does being religious make you healthier?
GUPTA: Well, you know, I'm fascinated by this. It's hard to sort of make a blanket statement that being religious is going to make you healthier. But here's one way to think about it, religious people tend to be happier. We do know that and happier people tend to be more optimistic. And optimism does seems to be related to better health overall. So, that's sort of one way to think about it. There's lots of studies on this as you might imagine.
In fact the review of studies actually looked at 126,000 people of all faiths. People who are in churches, mosques, temples and tried to figure out how was their health different as compared to people who didn't attend these places of worship. Take a look at some of what they found. They did find, with regard to spirituality and health, it may improve heart disease. Specifically as you look at the study, it may improve your likelihood of not having a second heart attack after a first one. It may reduce your chances of developing life threatening infections and it may improve cancer rates although more likely it actually improves your ability to cope with cancer.
Now, the thing about this, Kiran, is it's hard to tell whether or not people who are religious also take better care of themselves or if there's something happening in the body as a result of your faith. That's where it gets interesting. I had a chance to actually go to this place called the Mind Body Institute where they practice this. They actually teach people how to meditate, they teach people how to become more faithful people, more optimistic people. And they have shown some benefit in terms of decreasing blood pressure and reducing pain after some sort of injury. So, there does seem to be something here. It's hard to pinpoint exactly what it is, though, Kiran.
CHETRY: It's probably hard for as a doctor to prescribe religion. You talk about finding ways to make that mind body connection.
GUPTA: Yes. you know and I think a lot of patients sometimes ask their doctors, look, are you going to - are you going to sit down with me and pray? And on one hand, sometimes that - you know, that may be taken as a sign of something dire happening with the patient's health. On the other hand, the very word compassion means to suffer with. And a lot of doctors do sit down and show some - you know, and engage in either prayer or some sort of faith with their patient. So, that is something that's happening more and more. It's not taught in medical schools. I think this is something that. you know, doctors just sort of learn as they go along with their patients.
CHETRY: Fascinating. Sanjay, great to see you as always. Thanks.
GUPTA: Thanks, Kiran.
(BEGIN VIDEOTAPE)
ROBERTS (voice-over): Green government. John McCain's plan to lead by example. Bill Richardson, Obama supporter and former energy secretary responds live.
Plus, pucker up.
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: After kissing hundreds of babies.
ROBERTS: How you can airmail your baby to Obama so he can seal it with a kiss.
JEANNE MOSS, CNN CORRESPONDENT: Don't forget to bubble wrap your baby.
ROBERTS: You're watching the most news in the morning.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
ROBERTS: Five minutes now to the top of the hour. Saving energy and protecting the environment. Both Barack Obama and John McCain believe they have the right ideas and they're attacking each other's proposals. New Mexico Governor Bill Richardson is an Obama supporter. He also served as Energy Secretary under Bill Clinton and he joins us now early this morning from Santa Fe, New Mexico. Governor, it's great to see you. Thanks for being with us today.
GOV. BILL RICHARDSON (D), NEW MEXICO: Great to be with you, John. Thank you.
ROBERTS: As you've probably seen, Senator McCain is making a lot of issues about national security. And he's talking about energy in terms of national security as well. He's got this new plan to green the government, more fuel efficient vehicles, retrofit a lot of buildings, make them more energy efficient. And he's saying that Senator Obama is soft on energy security. Here's what his campaign spokesman said yesterday. "No on the $300 million for a new kind of battery. Before it was no on the possibility of further exploration of our coast, no on gas tax relief, no on expanded nuclear power. They're calling Senator Obama Dr. No. Is he?
RICHARDSON: No. Look, the reality is that Senator McCain is basically throwing a lot of gimmicks. You know, he wants to give a three-month gas tax holiday. That's not going to work. Every expert talks about that. You know, a prize for a battery in a hybrid vehicle. You need long-term research in that. A new gimmick. Every American president, bipartisan Congress, against drilling in the everglades in Florida and California. Now McCain wants to do that. Policy is drill, drill, drill.
What Obama wants to do is conservation, fuel efficiency of vehicles, renewable technologies, solar wind, biomass, biofuel. And by the way, on nuclear power, what he says is that yes, nuclear power has to be an option because it doesn't emit greenhouse gas emissions but we've got to find a way to deal with the waste, John, that generates from nuclear power plants. Because Nevada doesn't want it. You can't put it in regional sites. So, technologically we have to find a solution.
ROBERTS: All right. Let me back up a second. You mentioned this $300 million prize for the battery. Senator Obama did yesterday, dismissing it. Let's listen to how he put it yesterday.
(BEGIN VIDEO CLIP)
SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: 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. He put the full resources of the United States government behind the project.
(END VIDEO CLIP)
ROBERTS: So that was then, though, Governor. That was back in the 1960s when government could undertake these huge projects. Much of that burden now of research and development has shifted to the private sector. What is wrong with a $300 million prize to a company that comes up with a revolutionary new battery?
RICHARDSON: Well, look, Senator Obama wants to develop that battery too. And he wants to develop fuel efficient vehicles and plug-in hybrids. These are the new technologies of the future. But you don't just throw out 300 million bucks as a gimmick for somebody to discover it. You do long-term research. You do tax incentives for the industry. You invest. You co-invest with the industry. It just seems that every time something is popular and people are paying huge prices for gasoline, all right, take a poll and see what works.
Well, I mean, that's not a way to run a government. A three-month gas tax holiday? This is money that should go to light rail, to highways, to rebuild our bridges, to create jobs. You know, it just seems that it's policy by gimmick. And it's not working.
ROBERTS: Governor, I want to switch gears here and ask you about another issue. As you know, you have always been a great proponent of inclusiveness and bringing everybody into the democratic tent. We're getting - we're hearing complaints from Muslim groups that they're sort of a little bit being left out here in the Obama campaign.
They're not receiving the amount of outrage that Christian groups, Jewish groups are. Is that a good campaign strategy to not put as much emphasis on that group as some of these other groups?
RICHARDSON: Well, John, I'm not sure that's correct. I think Senator Obama has inclusiveness in all his outreach. You know, just look at the number of people, the diversity of the crowds that he gets when he speaks in a gym, when he past town meetings. It's enormous diversity. So, I don't disagree with that. I think he's reaching out to everybody. He was just here in New Mexico. And the diversity in our state is huge.
ROBERTS: Right. But at the same time, we got those two Muslim women who were told that they could not sit behind the Senator. That was a volunteer who did that. But Congressman Ellison is complaining about the level of outreach to Muslims.
