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Exploding Oxygen Cylinder Caused the Hole on Qantas Jet; Senator Ted Stevens Indicted on Seven Felony Counts; Biopsy on John McCain's Skin Showed No Evidence of Skin Cancer; San Francisco Bans Tobacco Sales in All City Pharmacies this Fall; Futuristic Jet Pack Gets Off the Ground; China Will Now Censor Internet Access Despite an Earlier Promise Otherwise

Aired July 30, 2008 - 08:00   ET

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


JOHN ROBERTS, CNN ANCHOR: Breaking this morning. Australian officials say it was an exploding oxygen cylinder that ripped a hole in a Qantas jet last week. The shrapnel also knocked out some of the plane's landing system.
Greg Feith is a former NTSB crash investigator. He led the inquiry into ValuJet Flight 592, the crash in the Florida Everglades back in 1996. He joins me on the phone now from Denver, Colorado.

Doug, we look at this exploding oxygen cylinder. Apparently, the valve in the top of the bottle and a piece of that bottle went into the passenger cabin, hit a door handle, knocked it into a partially open position, and then embedded itself in the roof of the cabin. What does all this tell you?

ON THE PHONE: GREG FEITH, FORMER NTSB INVESTIGATOR: Well, good morning, John. One of the things that it tells me as an accident investigator is that the focus is going to be on the top of the bottle where the valve was mounted, for it to have left the tank itself and gone up through the floor. It was under a tremendous amount of pressure. So, they're going to be looking at why that valve failed or the bottle itself failed causing the valve to release.

ROBERTS: Now, Greg, there was an FAA directive that we talked about the last time that you were on with us here on AMERICAN MORNING about the brackets and potentially the bottle coming loose.

Could this be a combination of things that perhaps the bracket came loose, allowed the bottle to drop out of position, maybe put some pressure or a sharp blow on the end of that valve, and caused it to crack off?

I know, I'm a scuba diver and we're always taught to be very, very careful of those valves at the end of the cylinder because with 3,000 PSI of air pressure in there, you knock that valve off, it turns into a rocket.

FEITH: Absolutely. You bring up a very good point, and that's exactly what the investigators are going to be looking at -- is to see if that directive that required the inspection of the mounting brackets had been complied with or even was applicable to this particular situation. So, they're going to look at that as far as how it was mounted. But they're also going to have to look at any external factors, that is, did something hit the aircraft. And one of the things I haven't heard is whether the airplane was in turbulence or not.

If it was, then something could have come loose in that cargo hold in close proximity to the tank, and then hit the tank causing it to move or release from its mount.

ROBERTS: Now, the airline has said that people were not in danger. But we see pictures here of this very large hole in the side of the aircraft. And we understand that when it landed at Manila, three of its instrument landing systems were not functional, and the anti skid system for the brakes was not functional as well.

I mean, could this have posed a danger? What if they hadn't tried to land in Manila in overcast weather?

FEITH: The fortunate thing about these aircraft and, of course, the pilots flying the airplanes, is the fact that they are prepared for situations, not necessarily due to an exploding oxygen tank, but they are prepared for the unexpected.

Now, if they had tried to land at some other airport that may not have been well-equipped like Manila, then that could have posed a problem. If you have a short runway, you really need to ** system, if you have bad weather, you're trying to get into an unfamiliar place, then most likely -- most definitely you would have a problem. But in this particular instance they were fortunate that Manila was close.

ROBERTS: So, what are the implications -- the broader implications of this, Greg? Are these oxygen bottles only used by Qantas Airlines? Are they in wide use on many 747s across many airliners?

FEITH: They're not only used on many 747s that are out there today, but other airplanes as well, still out there in the world in the various fleets. So, they're going to have to find out -- the investigators are going to have to find out exactly what caused this tank to fail or the valve to fail, and then take this out into the industry and have all of the oxygen systems, if it looks like it could be a systemic problem to a particular bottle or particular valve.

ROBERTS: Greg Feith, former NTSB investigator on the phone with us. Greg, thanks very much for your analysis on this. Really appreciate it.

Alina?

CHO: Five minutes after the hour now, the "Most Politics in the Morning." John McCain campaigns in Colorado and Missouri today. The presumptive Republican nominee is breathing a sigh of relief after getting a clean bill of health from his doctors.

A biopsy on a patch of McCain's skin showed no evidence of skin cancer. McCain had the growth removed from his right cheek during a routine check-up on Monday. He's had four bouts with melanoma. That's the most serious form of skin cancer.

Well, is Barack Obama ready to choose his running mate? Speculation is growing after Obama met for a second straight day yesterday with Eric Holder. Holder is the head of his vice presidential vetting team. The campaign isn't saying much about the meetings. Obama has said many times that the next time he talks about his VP selection, it will be to introduce that person.

And Hillary Clinton, remember her? Well, she's getting creative in an effort to retire more than $25 million of campaign debt. Get this. Clinton's Web site is offering donors a chance to win a summer retirement dinner, as it is called, with the senator and former presidential contender. Anyone who is interested can contribute from $10 to more than $2,300 for a chance to win the dinner. And according to the Web site, quote, "talk about whatever you like."

John?

ROBERTS: First they won't, now they will. Olympic spying. Why the Chinese government changed its mind and decided to sensor the media at the Olympic Games after all.

And Senator Ted Stevens indicted on seven felony counts. What he is saying about those charges today.

CHO: Three, two, one -- lift off. Flying. It's not just for super heroes anymore. Soon you, too, could own a jet pack for less than some luxury cars. Our own Miles O'Brien straps in and takes off. You're watching the "Most News in the Morning."

(COMMERCIAL BREAK)

ROBERTS: Well, new this morning. There will be no smoking in the boys' room in San Francisco. Why? Well, the city has ban tobacco sales in all city pharmacies beginning this fall. The city's board of supervisors voted 8 to 3 in favor of a first in the nation ban last night. It affects small stores as well as larger chain pharmacies such as Walgreens. Retailers violating the ban will be fine up to $1000.

It's how we seem anathema. They sell cigarettes in a drug store.

CHO: Well, New York City bans smoking in restaurants and bars and that kind of thing a couple of years back, and --

ROBERTS: And, you know, it's the best thing that's ever happened.

CHO: That's right. And smoking has gone down as a result.

GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: But not the high fat ban. I like the fat in my food. You know what I mean?

CHO: Oh, the trans fat, not healthy. It's not healthy.

(CROSSTALK) CHO: Hey, Gerri Willis is here to talk about trans fats and Delta charging more for baggage.

WILLIS: I'm defending butter's reputation right here on AMERICAN MORNING.

OK. Let's talk about the markets first. You know, we've been telling you the markets were up pretty heftily yesterday, 2.4 percent at 11,397. Check out these numbers. Still in the bear market here. You know, The high in October -- 14,164. So, you get the point there.

One of the reasons that stocks took off is that oil went down. We always like to hear about that. Crude was down $2.54 a barrel and right now trading at $121.85. You're seeing the close from last night.

But you know what? This still is not impressive. I mean, you think a year ago, oil was at $76.83 a barrel. Wasn't that nice? So, you know, we're up 60 percent.

What's going on? The airlines out there are getting hit and hit hard. They're doing everything they can to make their numbers and still having a difficult time. We talked a little earlier, Delta is doubling its baggage charge from $25 to $50. If you have a third or fourth or fifth bag, they're going from 80 bucks to 125 bucks. And if you have a surfboard or some skis -- I don't know.

Do you guys do any of that?

ROBERTS: I don't surf. But I do have skis.

WILLIS: OK. Well, it's going to be more expensive from $150 to $175.

ROBERTS: What?

(CROSSTALK)

WILLIS: If have you an overweight bag -- that's right.

ROBERTS: $175 to check skis?

WILLIS: Yes.

ROBERTS: Get cross country skis and ski there myself.

WILLIS: It might be cheaper. Definitely cheaper. And I know you travel all the time, Alina, right? I mean, this is for you.

CHO: For fun. Yes, it does, it does. I mean I was traveling back from Atlanta actually because I was working on the weekend. Pay that $15 fee from American and it hurts. Like I said earlier, psychologically, you know, you just aren't used to paying for stuff that you're used to getting for free. It's not a good thing.

WILLIS: Their fuel has doubled in the last 12 months. And I should say, fare hikes they've implemented this year. And they've tried it 21 times, 15 have been successful. And now, they're just going to reach right into your pocket and charge you more for everything.

ROBERTS: Lovely. Hey, back to your defense of butter and bacon and other food groups that begin with the letter "B."

WILLIS: I'm doing what I can.

ROBERTS: An old colleague of mine, Layne Benardos (ph), who now produces "THE SURVIVOR" finale specials, said -- once said to me, he said everything tastes better wrapped in bacon.

CHO: That's right.

ROBERTS: Including bacon, so --

CHO: Spoken like a man who had four strips of bacon this morning at 4:00 a.m.

WILLIS: Right.

ROBERTS: And could group a bypass surgery.

(CROSSTALK)

ROBERTS: Lift off. No, it's not George Jetson. But it could be you. Could this personal jet pack replace your car one day?

CHO: And Reynolds Wolf in the CNN Weather Center.

Hey, Reynolds, good morning. What are you looking at?

REYNOLDS WOLF, CNN METEOROLOGIST: Good morning. You know, if you happen to be lifting off, say from the spirit of St. Louis Airport and St. Louis, conditions not so good. Some scattered showers and storms. And coming up, we're going to have a look at your forecast across the nation. You're watching AMERICAN MORNING, the "Most News in the Morning."

(COMMERCIAL BREAK)

ROBERTS: Coming up now in 15 minutes after the hour. The cleanup is under way in and around Los Angeles. Nearly 90 aftershocks have hit the area, the most of them have been too small to be felt. Our Reynolds Wolf is monitoring the extreme weather today but starting off with extreme seismology this morning.

How are you doing, Reynolds?

WOLF: Real well, John. You know, we've been talking so much about this earthquake all morning long. But instead of talking, why don't we just show people how it's been affecting others. Take a look at this.

This is in Judge Judy's courtroom just yesterday. And John, what's so amazing about this, you notice the reaction of Judge Judy. You see the defendant. You see the plaintiff. Then, you can tell the camera's shaking a little bit. Judge Judy, her expression gets a little solemn, then a little panic. And then, you'll notice people start evacuating.

But the most amazing thing about this, you'll notice the director of this broadcast seems to be very, very calm, switching from one camera to the other. Kind of an unusual thing to see.

We go from that video to some other video around the LA Basin. And you can see the lights there shaking. This is a convenience store. A guy probably came in to get a soft drink and maybe a candy bar. And said he got in at a crazy time there. That's at the K&K Liquor -- that's a surveillance video -- in Pomona.

We go from that video to some more video, which is more of the same, just an unusual occurrence. Imagine this, it is just a pool in someone's backyard but as of yesterday, you see the boogie board, kind of a wave pool. This was sent in by iReporter Travis Corcoran. But scary times, to say the very least.

But there is that potential when you live in southern California, you always have that possibility of dealing with these earthquakes near the San Andrea's Fault.

OK. We're going to switch gears a little bit and talk about something else.

(WEATHER REPORT)

ROBERTS: It's going to be hot on the New York subway system today, Reynolds.

WOLF: It always is.

ROBERTS: I got on one train last night, the air conditioner was broken. It had to be 105 degrees in the car. Unbelievable.

WOLF: Goodness gracious.

ROBERTS: All right. Anyway, it was pretty cool. It was pretty good. Thanks, Reynolds.

WOLF: You bet.

ROBERTS: The Olympics just nine days away now. But one U.S. senator says it is not the games that the Chinese will be focused on. Instead, he says, the country will be spying on visiting athletes and journalists.

CHO: And want to cut down on your commute time? Could a personal jet pack actually replace your car? Our Miles O'Brien is going to join us live with a jet pack demonstration.

(COMMERCIAL BREAK) CHO: Little like the Jetsons. The futuristic jet pack, as it's called, gets off the ground. Its inventor has been working on it for close to three decades and soon, one can be yours. That's of course if you have the cash.

Our Miles O'Brien is live in Oshkosh, Wisconsin for a test flight this morning.

Hey, Miles, good morning. This is for people with deep pockets.

MILES O'BRIEN, CNN CHIEF TECHNOLOGY AND ENVIRONMENT CORRESPONDENT: Yes, deep pockets, Alina. About $100,000 you can get the largest jet pack. That's Glenn Martin helping me out here. We're going to take me for my second flight. I've got 30 seconds now on my log book on this. I've got my training wheels here. These guys are going to make sure I don't fly away. Although, it's so much fun last time, but we would like to go a little higher.

And I know it's going to be (INAUDIBLE). All right, so, I'm going to go a little higher, right? A little higher. Here we go. Here we go. Oh, boy! Oh, boy! Going up, going up. Little higher. Come on, just a little higher. (INAUDIBLE).

I was all set to go to 8,000 feet, Alina. And I don't think they're going to let me do that. But this is a -- we're at the Experimental Aircraft Association (INAUDIBLE). You want to kill it?

This has been the main event here. Yesterday, when they rolled it out, Glenn, it was really quite a sight. You had hundreds of people gathering around here. Your son, Harrison, 16 years old, flying it. What was that like for you?

GLENN MARTIN, JET PACK INVENTOR: Well, I was amazed. (INAUDIBLE), I expected 100 or 200 people, but 5,000 people would turn out to it. And then my son took off in front of the crowd. Did a beautiful, stable hover. It was amazing. I was so proud of him, so proud of the machine. Excited with the crowd came to see the thing. You know, it's been fantastic.

O'BRIEN: Now, let's try to go higher. You wouldn't let me do that. Were you?

MARTIN: Yes, we were having a little bit of an argument over the throttle.

O'BRIEN: And you won.

MARTIN: I won a little bit.

O'BRIEN: Who is this for? It's $100,000. Obviously, you got to have some deep pockets. But who is this for and what is it for?

MARTIN: Well, I think it is a really fun toy. Everybody -- and I'm sure you're the same -- who gets into it, comes out with a big smile on their face, and has a lot of fun. I think, you know, it is the same as the jet ski or snowmobile. You know, it is a little bit more expensive than those but if you've got those pockets, you know, it is a very exclusive toy. You know?

O'BRIEN: All right. You don't need a license for this. It is considered an ultra light by FAA rules, which means you don't need a pilot's license or a medical or anything like that, but you obviously need a little bit of training

MARTIN: Absolutely. We have got a training program for people. Obviously, we won't deliver any of these to people until they've had their training.

O'BRIEN: Have you sold a bunch of these yet?

MARTIN: Yes. There is a whole stack of orders sitting back in the tent at the moment. So, we had a fantastic day.

O'BRIEN: For 27 years, you've been working on this. To bring this public and all of a sudden it explodes. And delivers what has been a science fiction dream.

MARTIN: Absolutely.

O'BRIEN: It must be very exciting for you.

MARTIN: Yes. I mean, it's been my dream. I didn't realize there were so many other people in the world that had the same dream as me. It's been very exciting.

O'BRIEN: Glenn Martin with the Glenn Martin Jetpack. And maybe I can convince them for another flight? No. They're probably tired of finding me at this point, Alina. Alina, maybe next year I'm up to 8,000 feet.

CHO: And take me with you. I'm shocked. A stack of orders at $100,000 a pop.

Hey, Miles, as many of our viewers know, you are an experienced pilot. You fly to cover many of your stories. So, how does this compare to flying in your plane?

O'BRIEN: This is an unusual thrill. It really is. When you're there and all of a sudden your feet just start dangling, it's not an experience -- it's not quite like flying. It's very different. It's like floating. It's more akin to scuba diving, really, in a way.

CHO: Interesting. Never done that, but I'll take your word for it. The ultimate gadget geek strikes again, Miles O'Brien live for us in Oshkosh, Wisconsin. Miles, see you later. Thanks.

O'BRIEN: All right, we'll see you. Over and out!

CHO: John?

ROBERTS: Slight bit noisier than scuba diving, though, me thinks.

Senator Ted Stevens says he is innocent, vows to fight. Stevens is charged with hiding gifts that he got from an oil company.

And security concerns for athletes and journalists heading to the Beijing Olympics. China will now censor Internet access despite an earlier promise otherwise. We're talking with one U.S. senator about the implications.

(COMMERCIAL BREAK)

ROBERTS: 26 minutes after the hour now. And China is intent on presenting its best face to the world when the Olympic Games open on the 8th of August. But now the communist government is disappointing many people by going back on its word. Now saying it will censor foreign media's use of the Internet during the games. That breaks a promise that China made earlier guaranteeing press freedom.

Senator Sam Brownback has been leading the charge in these revelations, and he joins me now live in Washington.

Senator, good to see you this morning. How are you?

SEN. SAM BROWNBACK, NATIONAL CO-CHAIR MCCAIN CAMPAIGN: Good, John. Good to see you.

ROBERTS: Yesterday, you released some memos allegedly sent to hotels from China's security bureau. Let me read from one of those. It said, quote, "in order to ensure the smooth opening of Olympics, it is required that your company install and run the security management system for Internet access."

Is this spying in your estimation or is this just prudent monitoring to detect any kind of possible threat against the games?

BROWNBACK: This is the public security bureau in China requiring the installation of hardware that they can listen to anybody and everybody and their communications and their recordings that they're sent over the Internet in a real time purpose or over long-term. That's spying, John.

ROBERTS: You don't think that they're just wanting to make sure that no threats go underneath the radar there. They want to make sure that they have got everything out there on the open?

BROWNBACK: Well, what do you think? You show up at a hotel, you're covering the Olympics, you're a journalist, or let's say you're a human rights activist and you want to be around and be able to talk to journalists. And your Internet communications can all be monitored in a real time basis by the public security bureau of the Chinese government. I think they're clearly intent upon spying. They're going to be spying.

They have the capacity. They will be recording these sort of things. And this is against what they said they would do. They said they would have an open Olympics that they wouldn't be doing these sort of things, and yet they're requiring this, they're doing this, and the hotel chains are very upset about it because if they don't put the devices in, they could lose their license to operate the hotel. ROBERTS: What's your level of confidence, Senator, in these memos, that this is actually what they're going to do?

BROWNBACK: High level. I've talk to some of the hotel chains. They do not want to be identified because they don't want to pay the big fine or have their license taken away, which is a really big issue for the tens of millions of dollars they've invested and put in these hotels.

They've been talking to each other about it and they've been putting up pop-ups on their screen warning their guests that their Internet communications are not secure.

ROBERTS: All right. You know, different countries have different rules. I was in Israel during the 2006 war, and some of the footage and some of our reports we had to submit to Israeli censors before we're allowed to put the information out.

Is this similar to that or do you think this is completely different?

BROWNBACK: I think this is completely different. You're at the Olympic Games, you're not in a war situation, "A." "B," it is all communications that are monitored, listened in to on a real time basis without your permission and without the public security bureau telling you the only reason that you would have any knowledge of this is because the hotels are warning you that the system is not secure.

ROBERTS: Are there potential repercussions here. Did you think that people might actually come under duress if they write something that somebody somewhere who doesn't -- who is monitoring their e-mail doesn't like?

BROWNBACK: I think you could be kicked out. I think you could be in a situation where you don't get to come back into China in the future. I think there could be quick, I guess, responses by the Chinese and their own avenues and venues. But this is just totally outside of what they agreed to do in the Olympics. They agreed to host an open Olympics. This is this big coming-out party for China to the world, and then they are doing something like this.

ROBERTS: So, do you think it was a mistake to hold the games in Beijing?

BROWNBACK: Well, if they're not going to monitor their agreements, I think it is. I don't think the president should go. He think he should spend his time meeting with Darfur refugees or refugees from North Korea. China is the biggest enabler of human rights abuses around the world today for the number of countries that they block for. And I think we ought to highlight that instead of the accomplishments of China, what they're doing against human rights.

ROBERTS: Let me ask you this question, Senator. Are you going to do anything more about this other than to shine the bright light of truth on it? BROWNBACK: We've got a resolution we put before the United States Senate. We're contacting the International Olympic Committee about it as well. We're calling on the Chinese government to not do it. And we'll see what else we can follow up with and push.

ROBERTS: Senator Sam Brownback this morning. Good to talk to you, sir. Thanks for being on.

BROWNBACK: Thank you, John.

ROBERTS: All right. We'll see you again soon. Thanks.

CHO: All right. Here are some of the top stories we're following right now. A report published in the "New York Times" says the Central Intelligence Agency has evidence that Pakistan's spy service has strengthened ties with militant groups. The report says the CIA showed the proof to senior Pakistani officials earlier this month and that the evidence came from American military and intelligence.

Breaking this morning, Australian officials now confirm the hole that ripped through a Qantas jet last week was caused by an exploding oxygen cylinder. The blast also knocked out some of the plane's landing system and shrapnel entered the cabin slicing off part of a door handle.

Former Bosnian Serb leader Radovan Karadzic known as a "Butcher of Bosnia," is now in the Netherlands. He'll face a judge tomorrow on genocide and war crimes charges. The plane carrying him landed just a couple of hours ago completing his extradition to the Hague.

Alaska republican Senator Ted Stevens says he is innocent and vows to fight the charges. Stevens was indicted late yesterday on seven felony counts for allegedly hiding $250,000 of gifts and home renovations he allegedly got from an oil contractor. Joining me now from Washington, Justice Department correspondent Kelli Arena for us. Hey, Kelli. Good morning.

KELLI ARENA, CNN JUSTICE DEPARTMENT CORRESPONDENT: Good morning, Alina. Well, you know, Senator Stevens has been under a cloud of suspicion for more than a year now. Still he told colleagues yesterday that this indictment came as quite a shock.

(BEGIN VIDEOTAPE)

ARENA (voice-over): A new first floor. A garage. A wraparound deck. All for his vacation home in Alaska. More than $250,000 worth of gifts for an influential senator that were allegedly never disclosed. Senator Ted Stevens was indicted by a federal grand jury for not reporting those gifts as is required by law.

MATTHEW FRIEDRICH, ASST. ATTORNEY GENERAL: These items were not disclosed on Senator Stevens' financial disclosure forms which he filed under penalties of perjury.

ARENA: Prosecutors say the undisclosed gifts were given to Stevens over a seven-year period by an oil services company, VECO, and its CEO, Bill Allen, who pleaded guilty last year to bribery. The indictment says when the senator was receiving those gifts, VECO employees were soliciting him for "multiple official actions," including funding for projects in Pakistan and Russia. But the government stopped short of charging Stevens with taking bribes.

FRIEDRICH: The indictment does not allege a quid pro quo.

ARENA: Stevens has been under investigation for more than a year as part of a larger probe into public corruption in Alaska in which seven people have already been convicted. His home was searched last summer by the FBI and the IRS. In a radio interview at the time, he insisted he paid for his home's elaborate renovations himself.

SEN. TED STEVENS, ALASKA: Every bill that was presented to us has been paid. Personally with our own money.

ARENA: Stevens is still maintaining his innocence. In a written statement he says he's never knowingly submitted a false disclosure form. His colleagues, for now, are giving him the benefit of the doubt.

SEN. HARRY REID (D), MAJORITY WHIP: It's a sad day for him, us.

SEN. JOHN WARNER (R), VIRGINIA: I hope that this will turn out fairly and consistent with law and good decisions.

ARENA: The fact that Stevens is 84 years old could play a role in any plea agreement or possible sentencing.

(END VIDEOTAPE)

ARENA: Stevens won't be arrested. Prosecutors say he'll be able to turn himself in. We just don't have a timetable yet on exactly when that will happen. Alina.

CHO: Kelli Arena, watching all of this from Washington for us. Kelli, thank you. John.

ROBERTS: We may learn more this morning about the slaying of a pregnant Ft. Bragg soldier. Megan Touma's body was found in a motel room in Fayetteville, North Carolina last month. Police have scheduled a news conference for later on this morning following the arrest of a suspected fellow soldier of killing her. 27-year-old Edgar Patino was charged with first-degree murder. He is due to appear in court today.

CHO: Almost 90 aftershocks have been reported so far in southern California. The main quake caused little damage but take a look at that. A lot of frayed nerves especially as cameras rolled on some TV sound stages, like "Judge Judy." What's happening today?

(BEGIN VIDEOTAPE)

ROBERTS (voice-over): Rising food and gas prices. Coupled with sinking investments. UNIDENTIFIED FEMALE: Look at how much we've lost. Incredible.

ROBERTS: Tough times, crunching the credit card industry.

UNIDENTIFIED MALE: People are having a difficult time paying off their balance.

ROBERTS: The snowball effect linked to America's debt. You're watching the most news in the morning.

(COMMERCIAL BREAK)

ROBERTS: It's 37 minutes now after the hour. Welcome back to the most news in the morning. In this tough economy many American families are taking a hard look at the high credit card debt that they are carrying and some are taking matters into their own hands. Our own Allan Chernoff is here now with a surprising new credit card trend. I remember back in my 20s, I don't know how many times I cut up my credit cards and said forget it, no more. But I always returned to them. What are people doing now?

ALLAN CHERNOFF, CNN CORRESPONDENT: Actually a lot of people are doing just that, but older folks are doing it, middle-aged people. We're really finding now that people are saying, the appeal of credit cards is essentially gone right now. A new study out this morning from a Javelin Strategy and Research finds a growing number of Americans see credit cards as the enemy.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: Look how much we've lost. It's incredible.

CHERNOFF (voice-over): When Cappie and Don Perras saw their investment losses earlier this year they decided it was time to tighten their belts. Kathy, a school teacher and Don, a college professor, swore to stop using their credit cards, unless absolutely necessary. A big change from their old attitude.

CAPPIE PERRAS, CREDIT CARD HOLDER: I felt secure with my credit cards, like, well, I always have my credit card. Now I feel like it's almost like there is a big caution sign in front of the credit card. You know, do not use, only in case of emergency.

CHERNOFF: The only plastic the pair is using much today is their debit card. The Perras are economizing. They sold off their gas- guzzling SUV and bought this little gas-mizer of a car. And the couple is trying to attack their credit card debt of $18,000. How badly do you want to pay that off?

PERRAS: Oh, it would be a top priority. The fact that we have made it such in our family.

CHERNOFF: Even so, the Perras say they're barely making a dent in their credit card debt. Kathy and Don have plenty of company. Americans have built a mountain of credit card debt, nearly $1 trillion. And they're having trouble paying it down. Even as 40 percent of households cut credit card use. Largely middle income and middle aged Americans. According to Javelin Strategy and Research, a financial research firm.

JAMES VAN DYKE, JAVELIN STRATEGY & RESEARCH: Credit card companies are running a bit scared right now, for good reason. Because people are having a difficult time paying off their balance.

CHERNOFF: In fact, 70 percent of banks say they are cutting back on credit card solicitations. Many are reducing credit lines to existing card holders as well. Even so, banks say, they've got the situation under control.

UNIDENTIFIED MALE: You know the economy is riskier today than it was a year ago, so you naturally take that into account that you have the capacity to come out of this even stronger than you came into it.

(END VIDEOTAPE)

CHERNOFF: But until the economy picks up and inflation slows down, credit card debt is definitely going to remain a major burden for American households, and a threat to bank profits.

ROBERTS: You know, I don't buy that much on credit but I buy most of what I buy on credit because I like to get the points, because can you use the points to do other things and save money.

CHERNOFF: Well, points are valuable, but you know, if you use them for the airlines these days, you've got to watch out. The airlines are cutting back on what they're offering.

ROBERTS: you know, you with the monkey wrench in the plan!

CHERNOFF: There's always a negative there, right?

ROBERTS: Always a negative. Allan, thanks so much for that. Alina.

CHO: Always you can count on Allan for the silver lining there.

All right. Earthquake TV. The quake that was caught on camera. And now L.A. braces for more. We're on the scene where aftershocks have many on edge. And we're on the front lines with firefighters desperately battling that huge out of control wildfire.

(BEGIN VIDEOTAPE)

DAN SIMON, CNN CORRESPONDENT (voice-over): Even seasoned firefighters have been amazed by the spectacle.

RICH CADIGAN, FIREFIGHTER: This is something. You know, the state's being stretched already because of all the fires and stuff but you know, we've had to call in crews from Arizona and things like that. So, this is something.

(END VIDEOTAPE)

CHO: Our Dan Simon's on the scene for us. 4,000 homes still in danger. What one shocked woman came home to find.

And you've heard of the possible link between cell phones and cancer. But what about the kids who use them? Is a growing child who uses a cell phone in danger? We're "Paging Dr. Gupta" for answers.

(COMMERCIAL BREAK)

CHO: Shake, shake. Welcome back to the most news in the morning. Southern California rattled by more aftershocks this morning following yesterday's 5.4 magnitude earthquake. That's the large to hit a populated area there since 1994. Already, more than 90 aftershocks have hit. Though most are only being felt by seismographs. Judge Judy certainly felt it. Yesterday's main quake only caused minor damage and injuries and interrupted several TV shows during tapings. All area airports are now back to normal.

Yesterday's moderate quake caused little damage and no major injuries but the big one, as it's called, could be just around the corner for California. Here's more in an "A.M. Extra." for you. According to a U.S. Geological survey report issued in April, there is a 99 percent chance a quake measuring 6.7 magnitude or more will hit California within the next 30 years. And there's almost a 50 percent likelihood an earthquake measuring 7.5 or greater will hit the state in the same time period.

ROBERTS: California, a wildfire burning near Yosemite National Park is just 15 percent contained. The fire has burned 46 square miles since a target shooter sparked it last week. The flames are some 12 miles from Yosemite but official say there is no immediate threat to people inside the park. CNN's Dan Simon shows us what thousands of firefighters and area residents are dealing with.

(BEGIN VIDEOTAPE)

DAN SIMON, CNN CORRESPONDENT (on-camera): John and Alina, at least 25 homes have been destroyed, including this one. Obviously the people who live here lost everything. And this scene could be repeating itself a lot more in this area. 4,000 additional homes are said to be threatened. The fire is showing no signs of quieting down. That's because it has a virtually endless supply of fuel. Miles and miles of brush and dry vegetation just waiting to ignite. The flames have climbed 100 feet into the air, even seasons firefighters have been amazed by the spectacle.

CADIGAN: This is something. The state is being stretched already because of all the fires and stuff, but you know, we've had to call in crews from Arizona, things like that. So, this is something.

SIMON: The Red Cross opened an evacuation center for people who had to flee their homes. It's where we caught up with Mary Briggs who received word her home had been destroyed.

MARY BRIGGS, HOME DESTROYED BY FIRE: I keep remembering things I lost and it's hard. And I don't have a home.

SIMON: A lot of what she has now inside a single garbage bag and the single mother did not have fire insurance.

BRIGGS: I didn't think it was going to burn. I had to go to work and we grabbed a couple of things and I just figured we'd go back the next day and it would be there. And it's not there, you know.

SIMON: Many people here live on vast acres of land with goats, sheep and other livestock. The local fairgrounds has turned into its own evacuation shelter for animals. Where there are no flames, chances are you can still see smoke. Yosemite National Park remains open but the views aren't quite the same. Still, park officials are not discouraging people from visiting.

SCOTT GEDIMAN, PARK RANGER: Certainly the visibility and air quality are a factor, but the park is open and fully operational.

SIMON (on-camera): Authorities believe this wildfire was started by a target shooter, and at this point they believe it was entirely accidental. John and Alina, back to you.

(END VIDEOTAPE)

ROBERTS: Dan Simon, covering the fires for us this morning. CNN NEWSROOM just minutes away. Tony Harris at the CNN Center now with a look at what's ahead. Good morning, sir.

TONY HARRIS, CNN ANCHOR: Hey, John. Good morning to you. Good morning, everyone. California earthquake pictures for you in the NEWSROOM. High anxiety, spotty damage. Dozens of aftershocks rattle greater Los Angeles after a 5.4 quake.

A Ft. Bragg soldier expected in court today charged in the death of Army Specialist Megan Touma. Police brief us this morning. Live coverage ahead in the NEWSROOM.

President Bush pushing Congress again today on offshore oil drilling. He's live in the Rose Garden and in the NEWSROOM this morning.

Plus, a kitty that weighs 44 pounds. Wait until you see the pictures of one fat cat. Top of the hour on CNN. Back to you.

ROBERTS: A 44-pound kitty. Woo! My goodness. All right, don't want to miss that. Thanks, Tony. See you soon.

HARRIS: Thanks, John.

ROBERTS: It's the George Bush-Oliver Stone wants you to know. The portrayal of the president has the internet buzzing. An early look at the film "W."

(BEGIN VIDEOTAPE)

CHO (voice-over): Cell phones and a link to cancer?

UNIDENTIFIED MALE: If the phone is on the hip pocket, their whole body is still being exposed to the same amount of radiation it would be if it was up to their ear.

CHO: Is your phone putting you and your children at risk?

UNIDENTIFIED MALE: We know that young brains may be more susceptible.

CHO: You're watching the most news in the morning.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

ROBERTS: Nine minutes now to the top of the hour. New concerns about cell phones and cancer, especially with cell phone users getting younger and younger. Doctors debated the risks on "Larry King Live" last night. Let's listen.

(BEGIN VIDEO CLIP)

DR. OTIS BRAWLEY, AMERICAN CANCER SOCIETY: This is the kind of radiation that is not ionizing radiation. This is not microwave radiation. A lot of people are confused by that. I'm afraid that we're pulling the fire alarm, scaring people unnecessarily.

DR. DEVRA DAVIS, UNIVERSITY OF PITTSBURGH: I think we shouldn't wait 20 years to experiment on our children. And that's why we need to take precautions. We will eventually solve this scientifically but I am really concerned about what we do in the meantime.

(END VIDEO CLIP)

ROBERTS: We're "Paging our Dr. Gupta," CNN's chief medical correspondent. He joins us now. He's in New York with us this morning. Good morning to you.

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Good morning.

ROBERTS: So these researchers at the University of Pittsburgh were specifically talking about younger users saying that they shouldn't use the cell phone for anything other than calling 911. Just basically stay away from these things. Why?

GUPTA: There's just no studies to say whether they are dangerous or whether they are safe. And this is one of the great challenges in medicine, you know, trying to prove a negative. You've done stories on this very issue. We just don't know. And kids are using cell phones at a much younger age. They're going to use them for 60, 70, 80 years. Dr. Brawley made an instant point. I think everyone agrees that this is not ionizing radiation here but rather non-ionizing radiation. But you know, sometimes a picture is worth a thousand words.

Take a look at these images. How much radiation does a young child's brain absorb. A five-year-old child over here, you can see, you get a sense quite a bit. 10 years old, it gets a little bit less. But really if you compare it to an adult they absorb far less radiation overall as compared to the children. I'm not sure of the point -

ROBERTS: What type of radiation is represented here?

GUPTA: Well, this is electromagnetic radiation, not the ionizing radiation, which is the kind of stuff that you see in x-rays. The question is what does it do to your brain and what does the heat as well doing to the brain. Again, a five-year-old child who starts using a phone now, 60, 70, 80 years, we just don't have that kind of data.

ROBERTS: But when you talk about the spectrum that cell phones operate it, does it get close to microwave?

GUPTA: Well, it is a sort of microwave but you have ionizing on one end, you have non-ionizing and then you have this sort of radio frequency, which is the sort of broader category that cell phones are in. And again this represents that spectrum. No one really knows for sure what this does especially in the long-term. Starting to see some data out and it is not convincing in one direction or the other.

ROBERTS: Even if, in the long-term, researchers were to come out and say, yes, it looks like these things might be dangerous, I mean, what can we do? We're completely wedded to them.

GUPTA: Yes, you know, and some of the fixes are pretty simple. And first of all, It is worth saying again, the cell phone industry who we contacted about this says, look, there is no science. The overwhelming majority of studies show that there is no evidence that wireless phones present some sort of risk. The quick fix is to simply use an earpiece. Even in the literature that you get with your cell phone which no one reads, all those fine print, it says hold the phone a certain distance away from your ear. Even the cell phone industry is sort of conceding that. The question is what do you do about it if your concerned? An ear piece is fairly simple. Carrying the cell phone -

ROBERTS: Wired or bluetooth?

GUPTA: Well the bluetooth, even the wireless ear pieces are supposedly give off a little bit of the, again, no ionizing radiation. The problem again is it is a small amount but people wear it in the ear all day long. So, you're trading FF frequency for dosage. And you know, it is one of those things if you just wear a wired earpiece you'll probably save yourself a lot of the concerns about these issues. The science isn't really strong on either side there.

ROBERTS: But I tell you, ever since I saw that documentary that you can pop popcorn with cell phones, I've been really worried about this whole thing.

GUPTA: Yes, that was very concerning.

ROBERTS: It was a hoax. It's all right. Sanjay, thanks very much. Nice to see you again. Alina.

CHO: All right, guys. Movie night at the White House? Our Jeanne Moos gets exclusive reaction to the movie that's supposed to be a biography of President Bush. Something tells us he won't be giving it a two thumbs up.

(COMMERCIAL BREAK)

ROBERTS: Oh, yes. The old Louis Armstrong standard and now the theme for a brand new movie.

CHO: That's right. The "W" in Oliver Stone's new movie could stand for wild. The star does plenty of drinking, brawling and some skirt chasing.

ROBERTS: And did we mention that this is supposed to be a biography of President Bush? We're getting our first look now of the film. Our Jeanne Moos has some instant audience reaction for you.

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT: The reviews are coming in.

UNIDENTIFIED MALE: I think I love it.

MOOS: Not for a movie, just for the trailer linked to the internet. What a wonderful world.

Maybe not so wonderful for "W's" image.

UNIDENTIFIED MALE: He didn't like the sporting goods' job.

Come on, baby!

Working at an investment firm wasn't for you either.

MOOS: Oliver Stone's latest film, he's already done "JFK" and "Nixon."

UNIDENTIFIED MALE: Don't worry. I'll use the old Nixon charm.

UNIDENTIFIED MALE Who can resist that?

MOOS: But can you resist this? "W" supposedly being lectured by his dad. One bourbon, one scotch, one...

UNIDENTIFIED MALE: Driving drunk?

MOOS: Josh Brolin plays "W."

UNIDENTIFIED MALE: The guy looked like him too.

MOOS: Does he?

UNIDENTIFIED MALE: Yes.

JOSH BROLIN, ACTOR: I'm incredibly excited about it. It is an unbiased biography of Bush.

MOOS: Unbiased, huh.

UNIDENTIFIED MALE: What the hey this Oliver Stone making a George W. Bush movie?

UNIDENTIFIED MALE: You know it's going to be a hatchet job.

UNIDENTIFIED MALE: Oh, you reckon.

MOOS: "W" and his dad itching for a fight.

UNIDENTIFIED MALE: You want an ass with me.

UNIDENTIFIED MALE: Try it old man.

MOOS: White House Press Secretary dissed the film saying "Oliver Stone is an accurate historian, like Gilligan was an accurate navigator.: We navigated our way with a monitor out on to the street to give folks a sneak preview of the sneak preview. Come on! And after she viewed the trailer, headphones under the hat -

UNIDENTIFIED FEMALE: I don't want to look at his face. I've seen enough of him the past couple of years.

UNIDENTIFIED MALE: He's probably approaching it from a cartoon angle. You know, it's an exaggeration.

UNIDENTIFIED MALE: He didn't exactly finish up with flying colors in the National Guard, Junior.

MOOS: A British actor plays Karl Rove. A British actress plays Condi Rice. Ellen Burstyn plays Barbara Bush and James Cromwell as "W's" dad has the best line in the trailer.

UNIDENTIFIED MALE: What do you think you are? A Kennedy? You're a Bush. Act like one.

MOOS: During filming Josh Brolin and six others involved in the movie, including the guy playing Colin Powell got arrested after a bar room confrontation with police. The film is due out less than three weeks before election day.

UNIDENTIFIED MALE: It's for the republican haters who don't insist on reality.

UNIDENTIFIED MALE: It looks sort of like a comedy, so I like comedies a lot.

MOOS: Technically, it may not be a comedy.

UNIDENTIFIED MALE: Who do you think you are? A Kennedy?

MOOS: But it had folks chuckling like it was one.

UNIDENTIFIED MALE: You're a Bush. Act like one.

MOOS: Jeanne Moos, CNN, New York. (END VIDEOTAPE)

CHO: The casting is incredible on it, isn't it?

ROBERTS: Yes.

CHO: (INAUDIBLE), iconic.

ROBERTS: Every time you see James Cromwell right now, I can hear him say is, "that will do, pig. That will do."

Thanks so much for joining us on this AMERICAN MORNING. We will see you back here bright and early again tomorrow morning.

CHO: But keep it right here. "CNN NEWSROOM" with Tony Harris and Heidi Collins begins right now.