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American Morning

Secretary of State Rice Makes an Emergency Push for Peace; Mikhail Gorbachev Warns of Another Cold War; FAA Tapes of Obama's Flight Reveals Emergency Situation; U.S. Athletes Shines in the Olympics; Hunters Claim to Have Found Remains of Bigfoot

Aired August 15, 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: Just crossing the top of the hour and here are this morning's top stories.
Breaking this morning. Secretary of State Condoleezza Rice in the Georgian war zone. She reportedly brings with her a deal that would let Russia keep peacekeepers in South Ossetia and patrol a limited area beyond that region.

Pakistan's president, Pervez Musharraf, in back channel talks about the impeachment proceedings against him and the possibility of resigning. That's according to an official close to the president. Musharraf is accused of violating the country's constitution and eroding the trust of the nation.

American Airlines is facing fines of more than $7 million for safety violations. Regulators say the airline intentionally flew jets when they needed repairs, putting passengers at risk. The FAA also found problems with its drug and alcohol testing programs. American Airlines executives call the fine excessive.

KIRAN CHETRY, CNN ANCHOR: And returning now to our breaking news this morning. Russian tanks on the ground pushing deeper into the former Soviet Republic of Georgia. Georgia now claims Russia controls a third of its country. All of this despite a cease fire.

And happening right now, German Chancellor Angela Merkel is meeting with Russian President Dmitry Medvedev. The talks are aimed at resolving the conflict over the breakaway region of South Ossetia.

And the U.S. has started distributing aid in Georgia. The United Nations says almost 115,000 people have been uprooted by the fighting.

Secretary of State Condoleezza Rice is in Georgia now this morning as well with a plan that includes some concessions to Russia.

CNN's Zain Verjee is live for us in Washington. And, Zain, does Condoleezza Rice have enough clout to get anything done in this situation?

ZAIN VERJEE, STATE DEPARTMENT CORRESPONDENT: Well, Kiran, the U.S. wants the cease-fire deal signed quickly and Russia just to get out of Georgia. Secretary of State Condoleezza Rice is trying to make that happen. The U.S. does have some clout. It does have some cards to play, like kicking Russia out of international clubs or suspending contacts with Russia, diplomatically essentially just isolating and punishing it. But the thing is, the Russians may not really care. Rice is not going to Russia herself after this trip to Tbilisi and essentially sending a message that it's not business as usual with Russia and that there will be consequences from the U.S. -- Kiran.

CHETRY: Well, Zain, then there's talk of this new missile defense deal between the United States and Poland. What effect will that have in the mix as well amid everything else that's going on?

VERJEE: Well, the Russians are saying that this is just awful. You know, this missile defense deal between the U.S. and Poland has already made things a lot worse. The U.S. is saying that that missile defense plan, to be based in Poland and the Czech Republic is really aimed at Iran. But the Russians are feeling threatened and encircled by this because it's in its own backyard.

It would kind of be like the Russians putting a missile defense system in Cuba, a country that's hostile to the U.S. and close to the U.S. The U.S. wouldn't like it. That's what's going on with the Russians.

CHETRY: All right. That's just another thing in the mix as they try to work out some diplomacy and get some sort of deal here with Georgia and Russia.

Zain Verjee, great to see you, thanks.

ROBERTS: Former Soviet President Mikhail Gorbachev warns that Washington is jeopardizing its fragile relationship with Russia. Speaking to CNN's Larry King last night, Gorbachev said there is no doubt Georgia provoked the Russian invasion and warned of a new Cold War chill in the air.

(BEGIN VIDEO CLIP, CNN'S "LARRY KING LIVE")

MIKHAIL GORBACHEV, FORMER SOVIET PRESIDENT (through translator): We are witnessing -- definitely witnessing a process of militarization in the world today. And this is a big danger. Military budgets are growing. Weapons trade is going at a hectic pace. Look at Georgia -- at Georgia not being armed to the teeth (ph), it wouldn't have done what it has done.

(END VIDEO CLIP)

ROBERTS: Georgia's president also appeared on the program and criticized Gorbachev for "vindicating lies and deceptions."

CHETRY: Well, here's a look at the latest medal count in the Olympics this morning. United States dominating now in total medals. The U.S. has 44 to China's 37.

Australia coming in third with 20. China though still leading in the race for the gold. China with 23, the United States with 14 golds.

Also this morning, there is a new face of gold medal gymnastics in the United States and CNN's Larry Smith is live in Beijing with more for us this morning. Hey, Larry.

LARRY SMITH, CNN SPORTS CORRESPONDENT: Well, hi there, Kiran. Yes, you're so right. You know, if Thursday -- it's become very much a model. We modeled the two countries, China and the U.S. If Thursday was the day that belonged to China, then certainly Friday was a day for Americans to shine.

(BEGIN VIDEOTAPE)

SMITH (voice-over): Nastia Liukin is the "it girl" in gymnastics beating friend and teammate Shawn Johnson for the individual all around gold medal in Beijing. It's the first gold medal for the U.S. gymnasts at these games and the first gold silver finish in the event in U.S. history.

Another chapter in the historic Beijing story of Michael Phelps, a six gold medal and world record breaking performance, this time beating his closest rival by more than two seconds in the 200 meter individual medley. American Ryan Lochte took the bronze. Phelps will go for his seventh gold Saturday morning in Beijing that would tie Mark Spitz's hallowed record of seven gold medals from the 1972 games.

Rebecca Soni stole the show earlier in the Water Cube's pool, stunning Australian star Leisel Jones to break her world record and win gold in the 200 meter breaststroke.

Talk about making the most of a stroke of luck, Australia's Libby Trickett made the 100 meter freestyle final only when a Chinese swimmer was disqualified. Trickett took silver on Friday beating the favorite Natalie Coughlin of the U.S. who settled for bronze.

The USA men's basketball team gets ready for an undefeated showdown with Spain after their most impressive win yet, a 92-69 victory over a Greek team that beat them in the world championships two years ago.

James Blake shocks the tennis world when he knocked off top seed Roger Federer in straight sets. His first win over the Swiss sends Blake to the semifinals. Serena and Venus Williams won't join him there. Both lost in their single quarter final matches.

(END VIDEOTAPE)

SMITH: However, the Williams sisters are still here in Beijing. They won their doubles match on Friday and move on now to the quarter finals. Also for the first time in a week, the Bird's Nest takes center stage as the track and field competition has begun with some preliminary heats. Let's go back to you.

CHETRY: That will be exciting for sure. All right. Larry Smith, great to see you. Thanks. ROBERTS: A Texas jury has rejected a $400,000 lawsuit brought by a flight attendant against the wife of televangelist Joel Osteen. The Continental Airlines attendant claimed Victoria Osteen threw her against the bathroom door and elbowed her because of a stain on her airline seat that wasn't cleaned quickly enough. Osteen, her husband and other passengers testified that the incident never happened.

The desperate search continues this morning in New York for a 12- year-old girl who fell into the Niagara River Wednesday. But officials now say they no longer expect to find her alive. Rescuers say the girl was on a church hiking trip when she slipped into the river and was swept away.

CHETRY: Rapper DMX busted again this time in Miami on an outstanding warrant for skipping another court date in Arizona. Exclusive pictures by TMZ show that the rapper was nabbed outside of a Wal-Mart store.

Some powerful storm spawning a waterspout in Rhode Island. The wild weather rolled through yesterday afternoon. Forecasters are predicting even stronger storms today.

And here's what we're working on for you this morning. Controversial landing. Barack Obama's campaign plane, you may remember this, had to make an emergency landing last month in St. Louis. Well, now we know that the situation was a lot more serious than previously thought. So why are they just finding this out now? We'll have more on what's going on. You're watching the "Most News in the Morning."

(COMMERCIAL BREAK)

CHETRY: Ten minutes after 7:00 here on the East Coast. We're following breaking news this morning.

That's the video of Secretary of State Condoleezza Rice arriving just an hour or so ago in Georgia. She arrived with a cease-fire plan allowing Russian peacekeepers to stay in the disputed region of Georgia.

And Russian President Dmitry Medvedev is meeting with German chancellor Angela Merkel in the Black Sea resort of Sochi. Today's discussions are aimed at resolving the fighting over that disputed region of South Ossetia.

ROBERTS: New developments this morning about Senator Barack Obama's unscheduled landing last month. At the time the FAA said it was no big deal. But now we're learning it was much more serious than they first said.

CNN's Jeanne Meserve is live at Reagan National Airport for us this morning. Just how much more serious was it, Jean?

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: Well, John, back on July 7th, both the FAA and Midwest Airlines said that this unscheduled landing by the Obama plane in St. Louis was not caused by an emergency. But now, tower tapes first obtained by ABC News tell a very different story.

(BEGIN VIDEO CLIP)

PILOT: At this time we'd like to declare this an emergency and also have CFR standing by in St. Louis.

TOWER: I will show that and would you -- do you have a preference on runways? Would you like runway 3-0 right or runway 3-0 left?

PILOT: Well, which one is the longest?

TOWER: Runway 3-0 left.

PILOT: OK. We'd like 3-0 left and just for informational purposes, we have Senator Obama on board the aircraft and his campaign.

TOWER: Roger that.

(END VIDEO CLIP)

MESERVE: The plane, as we know, did land safely. The National Transportation Safety Board in a preliminary investigation said they found no sign of tampering here, that the cause appeared to be the deployment of an emergency chute in the tail cone while the plane was in flight. Their investigation is continuing.

As to why the public didn't know how serious this was when it happened, a spokeswoman for the FAA says when these incidents unfold often the preliminary information is incomplete or incorrect. In this case there was no clarification until, of course, these tapes came out.

John, back to you.

ROBERTS: My understanding of the situation is that when they were at altitude up in the 30,000 foot region, the pilot had very little control of the aircraft as he descended and got close to the ground, suddenly he regained control?

MESERVE: That's right. That's what the tape show. It was the pitch of the plane which determines the angle the nose is at. He was having problems with that at 32,000. When he went down to 10,000 feet, he seemed to be able to gain control of the plane, able to land it. All was well in the end.

ROBERTS: Do you know if they ever figured out why that emergency chute just deployed in the tail section?

MESERVE: I think that's something that's still under investigation by the National Transportation Safety Board.

ROBERTS: All right. Jeanne Meserve for us live at Reagan National this morning. Jeanne, thanks so much. CHETRY: An unusual sight in South Florida. Funnel clouds, strong winds and word of a tornado just north of town. Our Reynolds Wolf is tracking it all from the CNN weather center for us this morning. Hey, Reynolds.

REYNOLDS WOLF, AMS METEOROLOGIST: Hey, good morning. And today we're watching some development in parts of the Caribbean. It is this cluster of storms that is moving right towards Puerto Rico and near San Juan. We'll even give you the very latest on this and let you know the possibility for development.

That's coming up in mere moments. You're watching CNN, the "Most News in the Morning."

(COMMERCIAL BREAK)

ROBERTS: Coming up now at 16 minutes after the hour. Imagine looking out your office window and spotting this rolling in. I- reporter Terry Betten (ph) of South Beach captured these black clouds enveloping the area yesterday just before reports of tornadic activity in the Miami area.

And more extreme weather captured from CNN's I-reporters. Ben Velano (ph) of Long Island, New York, caught this. Hail the size of circular buffalo head nickels. He says it kept pounding down on his property for 15 minutes straight. Must some big storms here.

Reynolds Wolf in the weather center in there in Atlanta. How is that for a descriptor? Circular buffalo head nickels?

WOLF: You know, that's great. I would never have drawn that one out of the hat. That works perfectly. They were nickel size. No question about it and certainly an odd thing to see this time of the year in those areas.

There's something else we saw there, John. Take a look at this I-report that we've got for you. We're going to get to that immediately off the top, and we're going to show this I-report where you can see this funnel cloud.

This was spotted near Hialeah. This was sent in by Josh Kimber. And just what a crazy afternoon it was in parts of South Florida.

Let's get back to the weather computer for a moment. You see Miami right here on the map and Hialeah just north of the airport. Now if anyone was leaving that airport today and, say, maybe traveling to Jamaica, maybe even over to parts of the Dominican Republic, look what's happening just to the east.

We have this big area. It's not really at this point a depression or tropical storm or a hurricane, but this area of disturbed weather that we're watching very carefully. Now, we've got a couple things in our favor right now, to the detriment of Puerto Rico and for the Dominican Republic and Virgin Islands. This area of disturbed weather is producing very heavy rainfall expected to cross over to the Dominican Republic. You've got high elevation right between the Dominican Republican and Haiti and as you could see, not only some heavy rainfall but some flooding, some mudslides. So this system is expected to weaken just a little bit. But if it does veer a little bit more over open water to the north or the south, there's a very good possibility this may be a named storm. The next one would be Faye (ph). So this might be Faye before the day is out possibly into tomorrow.

Very quickly, a couple other things I want to show you. Some rough weather in parts of the Dallas/Fort Worth area. Two areas of showers came through there this morning. Any one on the commute this morning, you're going to have some rough times along parts of I-35 and I-20. Very slick conditions. Please be careful.

John, that's the latest we've got for you. Let's send it back to you in the news room in New York.

ROBERTS: Yes. Looking at that tropical activity, I remember back in '92 Hurricane Andrew was just kind of sitting there in almost the same position and just sort of a tropical disturbance. Popped north of there, and bam. So you've got to watch that stuff.

WOLF: You bet.

ROBERTS: Reynolds, thanks very much. We'll check back with you.

CHETRY: Well, it's a popular natural remedy. It's called Airborne. So many people swear by it when it comes to fighting off colds and cold germs. But now the makers coughing up millions over claims about the product's effectiveness. You're watching the "Most News in the Morning."

(COMMERCIAL BREAK)

CHETRY: Breaking this morning, this is dramatic and disturbing video of Turkish reporters caught in the shooting between Georgian and Russian forces who came under fire in South Ossetia Sunday. One of the men hit in the eye. Believe it or not, he kept narrating what was going on between prayers. All of the journalists are back safe recovering now in Turkey.

ROBERTS: Pretty incredible video. It's 21 minutes after the hour. The top videos right now on CNN.com. Most popular, putting the shot in live shot.

A reporter nicked by a bullet live on air. This reporter for Georgian TV under attack while covering the situation there. Tamara Urushadze kept on reporting while she and her crew were under attack. She escaped with only a minor graze on her arm.

Also, a house explodes. Police in Phoenix think that it was a gas leak that caused it. The blast so strong a water heater was found three houses down the block. No one was hurt in the explosion though.

And a cop and a former corrections officer in Georgia say they have found the elusive Bigfoot. And they plan to unveil the capture later on today. The story has been number one all night on our Web site.

Our Alina Cho is working the story for us this morning. She's got more on it now. So is this the real thing or just another hoax?

ALINA CHO, CNN CORRESPONDENT: Oh, well, that's for you to decide, John. There's a reason why it's popular. It's unbelievable.

As you might imagine, more than a couple of people think this is a hoax or maybe even part of a viral marketing campaign. Nonetheless, two guys who call themselves Bigfoot hunters are planning to hold a news conference today in Palo Alto, California. They will unveil what they say is DNA evidence and photos essentially proof, they say, that they have captured the body of Bigfoot, a half man, half ape, they say they found in the mountains of Georgia.

Now, it's allegedly seven feet seven inches tall, and weighs more than 500 pounds. And wait, there's more. The hairy creature apparently has reddish and blackish gray eyes, reddish hair, and allegedly its feet are flat, similar to human feet.

Now photos have already been leaked to the Internet and there was apparently so much interest in this that the Web site searching for bigfoot.com crashed for a time. Now obviously this is not the first time we have heard about Bigfoot sightings. But none of them have proven true to date and it's certainly hard to believe that this one will pan out, too.

But according to dedicated Bigfoot followers, the mysterious creature has been popping up in north and middle Georgia since before European settlers arrived. Detractors say the photo of the purported Bigfoot carcass in a freezer appears to be nothing more than a manufactured costume available on the Internet -- John.

ROBERTS: Buy hang on, Alina. These guys, later on today they're going to hold a press conference in which they're going to unveil this? They're actually going to make this available for people to take a look at?

CHO: No. They said that they're going to have photos and they say DNA evidence.

ROBERTS: Oh, oh, oh, photos. Oh, not the real thing. What happened to the real thing?

CHO: The real thing -- well, it's on the Internet, photos, apparently. But don't know what happened to the real thing.

ROBERTS: Produce the body. Let's see it.

CHO: That's right.

ROBERTS: That's what we want to see. All right. Alina, thanks so much for that.

CHO: You bet. CHETRY: I think they also said they have evidence that there are other alive -- the Bigfoots that are living. They don't want to reveal the location because they don't want people to descend on it.

ROBERTS: Remember "Jerry Maguire," show me the money? Show me the body.

CHETRY: All right. Well, maybe they will after all. You never know.

The four-day workweek. The final installment of our special series putting three CNN employees to the test. How does a three-day weekend sound?

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I'm going to have the extra day to go do the lunches, to go do the dinners, and to go do the things I, you know, I normally wouldn't be able to do.

UNIDENTIFIED FEMALE: It allows me while my sons are at camp to come and get my hair done.

UNIDENTIFIED MALE: I could spend it with my family.

(END VIDEO CLIP)

ROBERTS: You're watching the "Most News in the Morning."

(COMMERCIAL BREAK)

ROBERTS: Rick Warren has been called America's most influential pastor. He's an evangelical megastar who leads the Saddleback Church, the fourth largest church in the country. His book, "The Purpose Driven Life," has sold more than 30 million copies. Warren is featured on the cover of the most recent "Time" magazine, and this Saturday he is hosting Senators Barack Obama and John McCain for what's being called the "Civil Forum on the Presidency." And he me now from Lake Forest, California.

Rick, it's great to see you. What do you want to hear from the candidates on Saturday night?

RICK WARREN, SR. PASTOR, SADDLEBACK CHURCH: You know, John, we're going to look at four different segments. One is a segment on leadership. What is the personal character, competence, experience of each of these guys. One section will be on what I call stewardship, which is on the role and responsibility of the presidency, what they believe about the constitution, about the role of America.

We're going to look at a section on world view, which is all of those mine field questions that no matter how you answer them, somebody's not going to like it. And then we're going to look at America's role internationally. How we've been a blessed nation and how should we bless others. ROBERTS: Are you going to ask them about issues like abortion, same-sex marriage. Pro-life advocates are hoping that you do. And there has been some criticism in some corners that you have been soft pedaling political issues that are central to Evangelicals.

WARREN: Yes, I think everybody will be surprised. I'm going to ask all of the tough questions. I just intend to ask them in a civil way. This is called a civil forum which means you can disagree without demonizing the opposition. And I think everybody wants to know questions not just about those "moral issues" but also about a lot of other things, too. And I'm trying to stake out a common ground for the common good.

ROBERTS: You know, when you take a look at the evangelical vote, in 2004, George Bush captured more than 75 percent of people who identify themselves as either born again or Evangelicals. Our recent polling, CNN/Opinion Research Corporation poll have found that when it comes to John McCain, only 67 percent of Evangelicals say that they'll support him. Are you surprised at the shift?

WARREN: You know, it's interesting to me, John, that both of these men have been around for some time and Obama's written two books. Still a lot of people say, I'd like to know the real person. What are they really like? And I'm hoping that will happen in this forum.

Evangelicals have never been a monolithic voting base. Never. And the people who try to predict which way they're going to go in this election, I think may be surprised after Election Day. You don't really know. I don't know, and I don't think anybody knows.

ROBERTS: As you know, John McCain in 2000 and during the primaries ran afoul of Evangelicals when he criticized Pat Robertson, Jerry Falwell. He's tried to repair the relationship. Has he gone far enough yet?

WARREN: Well, I would make a difference between three terms -- the religious right, fundamentalists and Evangelicals. Those are not synonyms for each other. I happen to be an evangelical. I'm not a religious right, and I'm not a fundamentalist.

I think John may have been talking about certain groups that he was worried about at that time, but he certainly rebuilt bridges among them today. It's just a question of -- of, you know, whether they're going to vote on his issues or they're going to vote on Obama's issues. And we'll see.

WARREN: As for you yourself in the most recent edition of "Time" magazine on which you're the cover, they suggested you are evolving into the "super political, super cradle arbiter of public virtues and religious responsibilities." Other people have suggested that you're becoming a spiritual entrepreneur. What do you make of the darts and laurels and of the titles that people are describing to you?

RICK WARREN, AUTHOR "PURPOSE DRIVEN LIFE": Well, when you try to line out a middle ground, a common ground for the common good of America, you get pot shots from both sides. If I were just the left, I'd only get it from the right. And if I were just the right, I'd only get it from the left. But because I believe in the common good and I don't happen to think either party gets it right all the time, I don't think anybody bats 1,000, I get it from both sides. And that's to be expected.

ROBERTS: Yes.

WARREN: The cost of impact is criticism.

ROBERTS: I know that feeling, Rick. I know that feeling. Rick, it's good to talk to you. Thanks very much. We're looking forward to the forum.

WARREN: Good to talk to you, John.

ROBERTS: All right. Take care.

WARREN: Thanks a lot. Bye-bye.

ROBERTS: By the way, that civil forum on the presidency is going to be carried live on CNN at 8:00 p.m. Eastern this Saturday at Rick Warren's Saddleback Church.

CHETRY: It is 7:30 here in New York. The top stories now. American Airlines facing fines of more than $7 million for safety violations. Regulators say the airline intentionally flew jets they knew needed repairs putting passengers at risk. American executives call the fine excessive.

Mickey Mouse, Tinker Bell and Snow White taking their fight to the streets. Union workers from three Disneyland Hotels were protesting a new contract they say makes health care unaffordable. At least 32 protesters were arrested for disobeying police orders and blocking streets.

Saudi Arabia and its rulers cannot be sued for financing the September 11th attack. Yesterday a Manhattan Appeals Court backed a lower court that tossed out the lawsuit by victims and their family. They argued the Saudi government gave money to terrorist-linked charities. The Appeals Court ruled the country is protected by sovereign immunity.

And Secretary of State Condoleezza Rice making her case for peace in Georgia right now. She's expected to hold a press conference in about 20 minutes after arriving this morning with a new draft agreement. Our CNN's Frank Sesno is live in Washington for us right now with more. Hi, Frank.

FRANK SESNO, CNN CORRESPONDENT: Good morning. Well, the real question here as this whole thing unfolds half a world away is what's at stake? And the answer is just about everything. Mainly cooperation and everything from the fight against terrorism to Iran's nuclear program to locking down those loose nukes. The snapshot of how bad it could be? A comment yesterday from Secretary of Defense Bob Gates. Here's what he said. "Russia's behave over the past week has called into question the entire premise of that dialogue and has profound implications for our security relationship going forward."

(BEGIN VIDEOTAPE)

SESNO (voice-over): This is the nightmare. That a resurgent Russia waging the hot war could rekindle the cold war. A superpower rivalry all over again. The nightmare that when Bush saw Putin's soul, he suffered from wishful thinking or just got it wrong.

PRES. GEORGE W. BUSH, UNITED STATES OF AMERICA: I looked the man in the eye. I found him to be very straightforward and trustworthy.

SESNO: A lot's happened since then. Putin's accused of cracking down on democracy and the press, taking over the energy sector, shutting off the gas in the middle of the winter to pressure his neighbors. But Russia's invasion of Georgia changes the game and shatters any illusion that the two men who were side by side at the Olympics just a few days ago are playing by the same rules.

If the Russians have decided to rebuild the empire, reassert control over the neighborhood, keep a heavy hand on all the oil and gas that could be pumped from Central Asia, all bets may be off. There were plenty of warning signs. But we were focused on Al Qaeda, war in Iraq, and China rising. While we worried about $100 barrel an oil, enriching regimes in Iran and Venezuela it was in Russia where oil mixed with resentment and ambition and memories of faded glory. And now this.

(END VIDEOTAPE)

SESNO: The potential consequences of this nightmare are only compounded by that energy equation. Central Asia's oil and gas was supposed to be plentiful and stable. An alternative to middle eastern oil. With pipelines that went through Georgia only completed three years ago bypassing Russia's power politics. Those hopes along with a lot of others are in peril now. Kiran.

CHETRY: You know, Frank. This is just a remarkable turnaround from just four months back when the president met with Vladimir Putin.

SESNO: Yes. It's amazing. And they met not very far from Georgia, as a matter of fact. In Russia, they signed among other things the frame work agreement that was to lay out a broad range of compromise. The "New York Times" points out tomorrow one line from that framework agreement. Here's what it said. The era in which the United States and Russia considered one another an enemy or strategic threat has ended. Maybe not so fast.

CHETRY: Yes, exactly. All right. We'll see what comes of these talks with Condoleezza Rice. Frank Sesno, thanks for being with us.

SESNO: Sure.

ROBERTS: It's coming up now on 35 minutes after the hour. With more and more Americans looking for ways to save money on energy, a number of companies are looking at the idea of a four-day workweek. But how would that idea go over in a news room that's on fire 24/7? Here's CNN's John Zarrella.

JOHN ZARRELLA, CNN CORRESPONDENT: John, Kiran, now that we've seen how others like or dislike the four-day workweek, we decided to see how it might work in the 24/7 world of CNN News gathering. So we put it to the test. With three employees in our Atlanta NEWSROOM for one week.

ERICA HENRY SIMS, SENIOR ASSIGNMENT EDITOR: That can kind of carry us through.

ZARRELLA: Erica Henry Simms, Lynn Lamanivong, Scott Thompson. Their responsibility? Keeping tabs on what's going on in the western United States. For a week, instead of working five eight-hour days they worked a four/ten schedule. Longer work hours didn't bother Lynn.

LYNN LAMANIVONG, ASSIGNMENT EDITOR: Once you work eight hours, really two more hours doesn't make a difference at all.

ZARRELLA: But it can upset the balance when you have kids.

ERICA HENRY SIMS, SENIOR ASSIGNMENT EDITOR: Now, it might be a situation where my husband would have to do both the drop off and the pick up or we would have to rely on my mom.

ZARRELLA: Scott found until 7:00 p.m. meant less time in Atlanta's notorious traffic.

SCOTT THOMPSON, ASSIGNMENT EDITOR: By that time a lot of the rush hour traffic will have gone away. And it will be clear sailing all the way back up to Cherokee County.

ZARRELLA: All three used their extra day off as quality time.

THOMPSON: The lake levels have risen. That's good.

LAMANIVONG: Because I'm going to have the extra day to go do the lunches, to go to the dinner and to go do the things that, you know, I normally wouldn't be able to do.

SIMS: It allows me while my sons are at camp to come and get my hair done.

THOMPSON: I get to spend it with my family.

ZARRELLA: Only Scott with the longest commute seemed to save at the pump. Lynn lives close to CNN's Center. Erica found she spent more money on gas than if she had just gone to work.

SIMS: But, you know, look at all the stuff I'm able to do. Not only for my kids but for me, too.

ZARRELLA: Erica, Lynn, Scott, suddenly had the luxury of time for family, friends, and themselves.

(END VIDEOTAPE) ZARRELLA: The four-day workweek certainly saved just about everyone on energy costs. But what we found everywhere we went during our week long series was this. That extra day improved just about everyone's quality of life. John, Kiran.

CHETRY: Great stuff. I think it's a consensus. For the most part.

ROBERTS: You know, seven day workweek, four day workweek.

CHETRY: How about it?

Well, it's been called an inconvenient truth about the economy. But instead of detailing the perils of climate change, it's warning Americans about the global horror of debt and the statistics are staggering.

Speaking of the credit crisis, it's the Donald to the rescue, at least for one of us. Find out how Trump is helping a strapped TV icon avoid foreclosure.

(COMMERCIAL BREAK)

ROBERTS: There you go. But not a real house because that would be cruel. Donald Trump bailing out Ed McMahon. The real estate tycoon says he has agreed to buy McMahon's Beverly Hills mansion so he can avoid foreclosure and continue to live there.

Trump says he doesn't even know the man but says helping him is an honor. McMahon's home has been on the market for more than two years now. It was most recently listed for $4.6 million. Trump says though he hasn't met Ed McMahon he remembers watching him on the "Tonight Show" years and years ago and thought it would be a great thing to do. Of course, as we were pointing out earlier, Trump comes away with the property. You know, at some point.

CHETRY: Yes, exactly. So, anyway, at least Ed McMahon gets to keep living in his home. So that is good news.

Well, coming soon to a political convention near you, the grim state of the U.S. economy. Shudder at the growing federal deficit. That's right, it's a new film that takes a hard look at "Issue number one." It could almost be billed as a horror flick.

Our Brooke Anderson has details on a movie that's probably not going to be too entertaining.

BROOKE ANDERSON, CNN ENTERTAINMENT CORRESPONDENT: John and Kiran, a new documentary focusing on America's worrisome economic future will be screened in Denver in conjunction with the Democratic National Convention and in Minneapolis at the republican convention. Proof America's perilous fiscal health is center stage of the campaign.

(BEGIN VIDEOTAPE) ANDERSON (voice-over): When you think of horror stories you normally don't think U.S. economy. But that's exactly the subject of a new documentary, and it's pretty scary stuff.

PATRICK CREADON, WRITER, I.O.U.S.A: The government has made more promises than it can possibly pay for.

ANDERSON: The title of the Patrick Creadon film sums it up. I.O.U.S.A.

DAVID WALKER, FMR. COMPTROLLER GENERAL: The real problem is a housing problem, and it's the sub prime crisis. In reality we have a much bigger sub prime crisis with regard to the federal government's finances.

ANDERSON: How bad is it? The government owes more than $9 trillion. The Medicare and social security program face long-term deficits projected at more than $40 trillion. Money future generations will be forced to pay.

CREADON: That's just not fair. When you spend other people's money, which is what we're doing today, it's mean.

WALKER: Our financial condition is worse than advertised.

ANDERSON: David Walker, who recently resigned as head of the Government Accountability Office has a prominent role in the documentary. He insists if political leaders don't embrace financial reform, the picture won't be pretty.

WALKER: You could find the situation where the government is going to have to cut back on doing a lot of things that the people have now taken for granted. Or where income tax rates may have to more than double.

ANDERSON (on-camera): Failing that, the nation could see much higher inflation or interest rates, Walker argues. The impact could far exceed the current economic downturn.

WALKER: If we get a crisis, it will be much more dramatic than the one that we're facing today. And it will affect tens of millions of Americans.

CREADON: We have three daughters.

ANDERSON Credence says he made I.O.U.S.A largely out of concern for his kids' generation.

CREADON: If the debt stopped growing right now, we'd probably be OK. We could probably handle it. It's not today's problem. It's what lies ahead.

ANDERSON: For these guys.

CREADON: Our persistent editors.

(END VIDEOTAPE)

ANDERSON: I.O.U.S.A. is scheduled to hit theaters August 22nd. John. Kiran.

ROBERTS: Brooke Anderson for us this morning. Brooke, thanks so much.

Americans spend billions each year trying to prevent the sniffles. Guess what, it doesn't work. And now, one of America's favorite remedies, Airborne, coughing up millions of dollars over its claims. So can it really cure the common cold? You're watching the most news in the morning.

(COMMERCIAL BREAK)

ROBERTS: 46 minutes after the hour. A programming note for you this morning. President Bush on his way to the ranch in Crawford, Texas, this morning. Before he leaves at about 8:15 he's going to be stopping by to talk with the media about the situation in Georgia. Secretary of State Condoleezza Rice on the ground in Tbilisi right now. We're going to hear from the president. That'll be a little less than half an hour from now right here on CNN. Of course, we'll carry it live.

Right now let's hear about the weather. And Reynolds Wolf is watching some tropical activity. What's it looking like, Reynolds.

REYNOLDS WOLF, CNN METEOROLOGIST: Well, we're seeing some interesting tropical weather. Some of it just in the United States. In fact, some of the interesting tropical weather we've had in Florida yesterday, the converging sea breeze, the daytime heating, the rough weather. Take a look at what you have right now in Miami as we go to our Miami tower cam. Hardly anything happening for the time being. But I can guarantee you later on today as high temperatures soar into the 90s and you have all that moisture at the surface, you're going to see some convection and with that a chance of some strong storms.

Hey, you want to see some strong storms come back to me for a few moments and you're going to see this cluster that we have right over parts of Puerto Rico this morning in San Juan. Here's the possibility that into the weekend this could be a named storm. The name being Faye. It really stands kind of as a wait and see situation because if this system possibly moves back out over open water it could strengthen. You could see some strong rotation. And with that there's a chance it could be a tropical storm or hurricane by the time we get into either Saturday or Sunday. We're going to watch that for you very carefully.

Something else to watch is the rough weather you may experience in parts of the northeast and into the southern plains. We have a chance of some severe storms today. Same deal. A lot of moisture coming in from parts of the Gulf of Mexico. This frontal boundary is going to create a little bit of the lift. So very unstable atmosphere could bring some strong storms. Also, for parts of the northeast corridor, say from Boston southward to New York and even into Washington, D.C., could have some thunder boomers. But then out west, not much you're going to see but rather what you're going to feel is going to be the big story. Portland, Oregon, the mouth of the Columbia River going up to 101 degree today. Seattle with 90. 76 in Billings. And New York, where John is sitting at this time, temperatures going up to 79 degrees. Not a bad day for you at all. Let's send it back to you in the studio.

ROBERTS: All right. Reynolds, we had some pretty good thunderstorms yesterday. I decided late afternoon, hey, wouldn't it be a great idea to ride my bicycle up to a little cafe on the Hudson River and sit outside and have a burger and a beer?

WOLF: Not the best of ideas.

ROBERTS: It was the leakiest umbrella I've ever sat under in my life. Great thunderstorm though. Reynolds, thanks so much.

WOLF: Absolutely.

ROBERTS: We'll see you soon.

WOLF: You bet.

CHETRY: So funny. Thunderstorms know when you're planning to do something outside. I had the kids in the stroller, the double stroller -

ROBERTS: Sitting there with my burger and French fries and the leaking umbrella.

CHETRY: Yes. You got on outdoor shower whether you needed it or not.

ROBERTS: Best laid plans.

CHETRY: Well, here's what we're working on for you this morning. Will it be Evan Bayh? Perhaps Joe Biden? What about Tim Kaine? Or none of the above? Barack Obama heads back from vacation with vice presidential picks on his mind. We'll take a look at some of the top prospects.

Also a major push in Pakistan to remove President Musharraf from power. What could happen to the U.S. war on terror if a staunch ally resigns? You're watching the most news in the morning.

(COMMERCIAL BREAK)

CHETRY: Welcome back. Well, bad news for the makers of a popular product for fighting the common cold. The makers of Airborne tablets have agreed to pay $30 million to settle a lawsuit and federal regulators charges that they made false claims about the cold fighting benefits of the Alka-Seltzer like fizzy fruit remedy.

Joining us now is CNN chief medical correspondent Sanjay Gupta. So $30 million in refunds and attorney's fees. What were the claims that Airborne were making? DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Well, they claimed it would prevent you from getting a cold, which is sort of a holy grail in medicine, Kiran. This is one of these products here that I got asked about all the time. People always come up to me and say so does this Airborne stuff really work? And I didn't quite know how to answer them. But you know, the interesting thing about supplements versus drugs. Drugs whether you get a prescription or nonprescription, go through the FDA. You got to prove that they're safe. That they're effective. Supplements, they don't have that same standard. So there are a lot of claims out there that have to subsequently be validated.

The FTC regulates these claims. And here's what they specifically said about Airborne, which was the heart of this lawsuit. They say "there is no credible evidence that Airborne products taken as directed will reduce the severity or duration of colds or provide any tangible benefits for protecting them from germs in crowded places. So this is sort of at the heart of all this. That was the claim that was being made by the makers of this particular substance. Now, they say, look, they did no wrongdoing here. They had a particular product full of all these different vitamins and minerals. And what they say is we're pretty confident that the product here as it is actually boosts the immune system. Which, you know, if you take that one step further will prevent colds. FTC not buying it, $30 million lawsuit, people can apply for their credit if they bought this product and it didn't work. Kiran.

CHETRY: Yes, it's really interesting, so little or no evidence that Airborne works. Some of the ingredients, though, in Airborne are popular for either staving off or help shorten the duration of a cold. Things like vitamin C and zinc. What is your take on whether those supplements actually work in that way.

GUPTA: That's where it gets a little confusing. Because there's lots of studies on the various ingredients that come in Airborne, but as a product as a whole, there's no evidence that it prevented colds. But you're right, a couple of them, for example, vitamin C, that is something that people have been talking about for years. And while there's no evidence that in the general population it helps prevent colds, even in higher doses, for people who are exposed to extreme environments, very cold environments, harsh environments, 200 milligrams of vitamin C may provide some benefits.

Echinacea, something that we've done a lot of reporting on again, very little evidence that it's going to provide much in a way of benefits. But if you happen to take it right at the start of a cold, it may shorten the duration by a day or so. And that's sort of the same thing with zinc. You got to take a lot of it. You got to take it on the first sign of cold. And it may give you half a day or a day's worth of benefit in terms of shortening the duration. Not a lot overall. Kiran.

CHETRY: Yes. I was looking at Airborne's web site, they changed it to supporting your immune system. You see a lot of those supplements saying they support something, they don't necessarily cure it. GUPTA: That's right. So it's still going to be on the market exactly as you say with this new claim, which I think is going to get by the FTC.

CHETRY: Sanjay Gupta, thanks. And for more "Fit Nation" and the week's medical headlines, tune into "House Call with Sanjay," 8:30 p.m. Eastern Saturdays and Sundays. 8:30 a.m., sorry, Saturdays and Sundays.

(BEGIN VIDEOTAPE)

ROBERTS (voice-over): Inside on Barack Obama's biggest decision this campaign. Who is on the short list to become his VP, and why?

And beauty's ugly side.

UNIDENTIFIED FEMALE: We're not going to put someone ugly on our cover, it's not going to sell.

ROBERTS: The new documentary on the extreme lengths to achieve feminine perfection on the most news in the morning.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

ROBERTS: It's coming up now at three minutes to the top of the hour, welcome now to the most politics in the morning. Senator Barack Obama bids Hawaii farewell and heads back to Chicago this morning. His focus now turns to his vice presidential choices. And as Candy Crowley tells us the best advice Obama is getting is to go with the name that makes the least waves. She's here now with that.

CANDY CROWLEY, CNN SENIOR POLITICAL CORRESPONDENT: Good morning from Honolulu, Kiran and John, where Barack Obama is in the final hours of his Hawaiian vacation. He will leave here and head home for Chicago. Two weeks from today, he will be the official democratic nominee. And you know what that means, right now we are in very intensive vice presidential watch.

(BEGIN VIDEOTAPE)

SEN. BARACK OBAMA (D), PRESIDENTIAL CANDIDATE: The vice presidency is the most important decision I'll make before I'm president.

CROWLEY (voice-over): Painted as a liberal, he could use a moderate on his ticket. New to the national scene, maybe a foreign policy expert or a popular southern governor to help him change the electoral map. But first, Barack Obama, needs to do no harm.

DAN BALZ, "THE WASHINGTON POST": I think the choice for Senator Obama really is one in which he is likely to make a relatively safe choice. And I say that because I think that there are enough questions about him, that I don't think he wants to add to that with the selection of a vice president. CROWLEY: Dole would be OK too. Obama needs no help in the sizzle department. Since June when he secured the nomination, the campaign trail has looked and sounded like the series of tryouts.

SEN. EVAN BAYH (D): Please join me in welcoming, our friend, my neighbor, the next president of the United States, Barack Obama.

CROWLEY: Evan Bayh is a moderate democrat, a photogenic former governor and now a senator in very republican Indiana which Obama would like to put in play this fall. But Bayh is criticized by some of his colleagues as an underachiever. And he voted for the war in Iraq and opposition to the war is Obama's basic foreign policy argument.

SEN. JOE BIDEN (D), DELAWARE: John McCain was wrong about the war in Iraq.

CROWLEY: Joe Biden also voted in favor of the war resolution, but after 30 plus years in the Senate, he is regarded as a foreign policy expert. He is also a seasoned political pro with strong ties to key democratic constituencies and has no problem in the attack dog role reserved for VP nominees.

BIDEN: We don't need as a commander in chief a war hero, John's a war hero, we need someone with some wisdom.

CROWLEY: But Biden is known to wander off message, even his own. And as a long time Washington insider, he seems at odds with the campaign running on change.

GOV. TIM KAINE (D), VIRGINIA: It's flattering to be mentioned, my mom loves it. She calls when she sees it.

CROWLEY: For the freshest of faces on the national scene, there is Governor Tim Kaine of Virginia, a gateway to the south for Obama who would like to reverse years of democratic presidential defeats in the region. But with only two years as governor on his resume, is Kaine too fresh of a face for a presidential candidate defending his own credentials?

OBAMA: This will be my final counselor when I'm making decisions in the White House and I want to make sure that I get it right.

CROWLEY: Kaine, Biden and Bayh are the most talked about possibilities, but not the only ones being bedded in a process hinted at in public pictures, but discussed in private. In the end, it is both a policy and a political choice, a complex calculation with different answers, depending on what you factor in.

(END VIDEOTAPE)

CROWLEY: In fact, sources around two people whose names have not been prominently mentioned in the vice presidential speculation, say they've been told by Obama operatives not to pay too much attention to the chatter around these choice. They say, in fact, Obama may have something entirely different on his mind -- Kiran and John. ROBERTS: Candy Crowley for us this morning. The vice presidential choice is going to have a major impact on the campaigns, and CNN is taking an in-depth look at the issue tonight. Don't miss the "ANDERSON COOPER 360" special "Crucial Choice: The Next VP." That's tonight at 10:00 Eastern.