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American Morning
Financial Crisis Deepens; Rescue at Sea Continues for Two Missing NFL Players; RNC Chairman Apologizes to Rush Limbaugh; Obama to Meet Prime Minister Gordon Brown; Boy Starts No Cussing Club
Aired March 03, 2009 - 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: 7:00 Eastern now. We got a lot to cover this morning. Here's what we're breaking down for you in the next 15 minutes of the Most News in the Morning.
Where is the bottom? We're dissecting the Dow's breathtaking decline yesterday. Markets in Europe and Asia following suit, falling again this morning.
Christine Romans is here on the battering that investors are taking and some troubling signs ahead.
The Coast Guard searching desperately for two NFL players and their friends still missing at sea off of the coast of Florida. One man rescued yesterday found clinging to his capsized boat. Our John Zarrella is live with the survivor's mom and what she says kept her son alive.
And the Republican Party chairman now backpedaling and apologizing to talk show host Rush Limbaugh after bashing him. Jim Acosta this morning on the clash of the conservatives and a party desperately in search of a voice. It's all ahead in the next 15 minutes here on the "Most News in the Morning."
We begin with breaking news. The Dow opening this morning at its lowest levels since April of 1997, and it's impacting markets around the globe right now. We're keeping a close eye overseas.
And take a look right now. Arrows are pointing down at London, Germany and Japan. The widespread decline comes on the heels of insurance giant AIG's fourth bailout. Taxpayers are now into AIG for more than -- get this -- $162 billion and that breaks down to $1,400 a family. It's something that hit a very raw nerve with folks at home. Take a listen to some of the iReports that we received overnight.
(BEGIN VIDEO CLIP)
DAVID SEAMAN, IREPORTER: You know, if you were to give me $62 billion and ask me to lose it for you, I don't think I'd be able to lose that much money ever.
MANNY DORADO, IREPORTER: Another bailout? This is ridiculous. This is to the point where you are giving money to a company that's not responsible or taking responsibility for their actions.
ROBIN SAVAGE, IREPORTER: The first thing that comes to my mind is OK, who is getting paid big bucks or getting a corporate jet just to bail out AIG? We're not so stupid anymore now, are we?
(END VIDEO CLIP)
ROBERTS: Yes. People voicing their opinions about the AIG bailout, the continuing bailout of AIG. And Christine Romans "Minding Your Business" now.
You know, we talk about the Dow and how it's hurt small investors, like folks who are investing in their 401(k)s or maybe trying to get a little stock fund going on the side for retirement...
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: We did the right thing.
ROBERTS: ... it's like can any of us retire? Are we all going to work until the day we die?
ROMANS: You know, a lot of people have got to put off retirement. That's what this means. And some people who have been investing their whole working career are now looking to say, wait a second, you know, what do I have to show for it here. I mean, this is what the difficult part of this whole crisis.
You look at the Dow, it's been cut in half. Since its record high in October 2007, it's down 52 percent. I mean, that picture there is of a bear market. That is a slow motion crash and that's what we've been living through and it feels like it, from 14,000 to 6,700.
So how has the market done since we've been trying to fix this problem? It's only been getting worse. Since the financial bailout back in October was signed, the Dow was down 34 percent, a third of the value gone. Since the inauguration, it's down nine percent.
There's a little bit of a pop because of the inauguration. And look, since the stimulus package was signed, it's down 10 percent. So no matter what we do, the market is just bleeding here and that's the why the savers and the investors are feeling frustrated right now.
I think the takeaway from this, John and Kiran, is that we're still in the guts of trying to figure out how bad the recession is going to be. When I talk to personal finance experts, when I talk to people on the market who have been watching this for a very long time, the real veterans, they tell me this is not the time to be taking a risk with your money, with your family, with your job. This is just -- don't just stand there. Just don't do something, stand there, they say, because we're --
ROBERTS: I guess that's why we saw the savings rate at five percent in January.
ROMANS: That's absolutely right.
ROBERTS: People are hanging on to their cash.
ROMANS: We also have spending just picked up a little bit in January. And I think that shows you the people might be feeling a little more comfortable about how much money they're saving and so they're taking advantage of some of these deep discounts and buying some things. So --
ROBERTS: You can get a good bargain.
ROMANS: That's right. But a five percent savings, people are -- people are starting to get concerned about the situation and trying to save a little bit of money.
ROBERTS: Yes.
ROMANS: And that is ultimately a good thing but it hurts the economy right now.
ROBERTS: Who knew Americans could ever save money?
ROMANS: I know.
ROBERTS: It's positively un-American.
ROMANS: You're right.
ROBERTS: Thanks, Christine.
KIRAN CHETRY, CNN ANCHOR: Well, also new this morning, Citigroup is coming out with a new program to help some struggling homeowners avoid foreclosure. This is if you get a mortgage through Citi.
It allows unemployed homeowners to pay as little as $500 a month on their mortgage. This reduced rate will last three months. Citi will waive interest and penalties during that period. Some homeowners may be able to get an extension depending on their situation.
Also this morning, new outrage at the man charged with stealing as much as $50 billion from investors. In new court documents, Bernard Madoff is trying to keep the government from taking his $7 million New York penthouse claiming that it belongs to his wife. He's using that same rationale to try to stop $62 million in other assets from being seized. Right now, Madoff remains under house arrest in that very penthouse.
And disgraced governor of Illinois, Rod Blagojevich, has a six- figure book deal now. His publicist says Blagojevich, ex-governor, of course, will write a book "exposing the dark side of politics that he witnessed on both the state and national levels."
The book is scheduled for publication in October. Blagojevich, as you know, was impeached, removed from office in January, and now faces federal charges that include allegations he tried to sell President Obama's vacated Senate seat to the highest bidder.
And now there are new developments in the frantic search for three boaters missing at sea off the Gulf Coast of Florida. One man was found alive yesterday clinging to his capsized boat 35 miles off of the coast of Clearwater. His friends, two NFL stars among them, nowhere to be found this morning.
And John Zarrella is live with the latest on the search and how this man unbelievably against all odds really found the inspiration to survive, clinging for some 36 hours to that capsized boat.
Hi, John.
JOHN ZARRELLA, CNN CORRESPONDENT: Hi, Kiran. That's absolutely right.
You know, this was just a fishing trip. Four men going out for a day on the water. This morning, the Coast Guard is continuing to search 3,500 square miles off Florida's west coast for three of the men still missing, now Saturday night, Sunday night, Monday night in the water. A fourth man dramatically rescued.
(BEGIN VIDEOTAPE)
ZARRELLA (voice-over): The U.S. Coast Guard found Nick Schuyler cold, wet and alive.
CAPT. TIM CLOSE, U.S. COAST GUARD: The boat was overturned, and he was on top of the boat.
ZARRELLA: For the search teams, Schuyler's rescue is bittersweet. He was alone. This Coast Guard photograph showed him sitting on top of the 21-foot boat as it bobbed in the choppy waters of the Gulf of Mexico. Schuyler's friends, William Bleakley and NFL players, Corey Smith and Marquis Cooper, were not with him.
CLOSE: We now know we're looking for persons in the water, not the boat. So they're doing search and rescue planning and we started hitting that area very hard.
ZARRELLA: The boat was found 35 miles off Tampa Bay. The Coast Guard believes the current in the area would have carried the missing men southeast toward the coastline. Schuyler was hoisted in a basket from the Coast Guard cutter tornado to a helicopter and airlifted to Tampa General Hospital. He was alert and sitting up as he was placed on the stretcher.
When she heard her son was alive, Schuyler's mother says she collapsed.
UNIDENTIFIED FEMALE, NICK SCHUYLER'S MOTHER: I passed out. I went down. We're ecstatic. I mean, we couldn't have asked for a better ending for us.
ZARRELLA: Schuyler told the Coast Guard that a large wave capsized the boat on Saturday. All four men went into the water and all four were at least for awhile clinging to the boat.
UNIDENTIFIED FEMALE: I went and saw him first and he told me, "Mom, I kept saying you're not going to go to my funeral." He says that's what kept him hanging on. ZARRELLA: In the Coast Guard photographs, you can see Schuyler wearing a yellow raincoat and a red life vest. It's believed his friends were, too, but for them, time is not on their side.
(END VIDEOTAPE)
ZARRELLA: Now the water in the Gulf of Mexico is in the mid-60s or so, low to mid-60s so not terribly cold. But after three days in that water, hypothermia is very likely to have started setting in. And as one member of the coast guard put it, there's only so long you can stay afloat -- Kiran.
CHETRY: Oh, gosh, I know and they're continuing to hope and pray for a miracle, though, for the three that have not been found yet.
John Zarrella for us this morning, thanks.
Also just a note at the bottom of the hour, the Coast Guard captain that's heading up the search is going to be joining us live from St. Petersburg with the latest on the rescue effort -- John.
ROBERTS: Nine minutes now after the hour. Some people call him a leader. Some people call him a mouthpiece. Others say he's just a big bully. But whatever you think of Rush Limbaugh, it's hard to doubt his GOP poll this morning.
The new chairman of his own party is falling all over himself, backpedaling and apologizing for dissing the radio host.
Our Jim Acosta has been working the story in Washington and joins us now. And, Jim, this is just the latest Republican who said some intemperate things of Rush Limbaugh soon to be paying homage to the great leader here.
JIM ACOSTA, CNN CORRESPONDENT: That's right. We're beginning to see a pattern here, John. This is quickly becoming a fight over who controls the Republican Party, Rush Limbaugh or new RNC chairman, Michael Steele. Over the weekend, Steele challenged Limbaugh over some of the talk radio host's recent controversial comments, including the conservative broadcaster's remark that he hopes President Obama fails. Steele called out Limbaugh on CNN, talking to D.L. Hughley.
(BEGIN VIDEO CLIP)
D.L. HUGHLEY, HOST, "D.L. HUGHLEY BREAKS THE NEWS": We don't need incendiary rhetoric.
MICHAEL STEELE, CHAIRMAN, REPUBLICAN NATIONAL COMMITTEE: Exactly.
HUGHLEY: Like Rush Limbaugh who is the de facto leader of the Republican Party.
STEELE: No, he's not.
HUGHLEY: Well, I tell you what? I've never heard anybody... STEELE: I'm the leader of the Republican Party. Let's put into context here. Rush Limbaugh is an entertainer. Rush Limbaugh, this whole thing is entertaining. Yes, it's incendiary.
HUGHLEY: (INAUDIBLE) Republican Party. Right.
STEELE: Yes, it's ugly.
(END VIDEO CLIP)
ACOSTA: But it got uglier. If you take on a man with a microphone and a few hours of airtime to kill, guess what happens? You got it, Limbaugh had Steele for lunch.
BEGIN VIDEO CLIP)
RUSH LIMBAUGH, RADIO TALK-SHOW HOST: It's time, Mr. Steele, for you to go behind the scenes and start doing the work that you were elected to do instead of trying to be some talking head media star.
(END VIDEO CLIP)
ACOSTA: Ouch. And that brings us to where we are now, the leader of the Republican Party stuck in the middle forced to backpedal a little bit and issued this public apology. Here it is. "I respect Rush Limbaugh. He is a national conservative leader and in no way do I want to diminish his voice. I'm sure that he and I will agree most of the time but will probably disagree some as well, which is fine." Including most notably here.
Democrats by the way, they are enjoying the smackdown from the sidelines. The new head of the DNC, Virginia Governor Tim Kaine released a statement of his own saying Steele's apology "proves the unfortunate point that Limbaugh is the leading force behind the Republican Party."
And, John, we noticed that this is a pattern that's emerging here as Kiran noted in the last hour, Georgia Congressman Phil Gingrey accused Limbaugh earlier this year of throwing bricks and so forth, and he had to go on Limbaugh's show and apologize. No word yet whether Michael Steele will be making an appearance on the "Rush Limbaugh Show" later today.
ROBERTS: Yes. Ron Paul said yesterday it's kind of sad that Rush Limbaugh is seen as the leader of the Republican Party, but I think that was more of a smack at the Republican Party than it was at Rush Limbaugh. So, we'll see if Ron Paul will be taking that back. I doubt it, though.
ACOSTA: I don't think he's going to the woodshed.
ROBERTS: Jim Acosta for us this morning. Jim, thanks so much.
ACOSTA: You bet.
ROBERTS: Kiran? CHETRY: Well, she took her children to work with her to the Army. Reporting at duty with her kids in tow, and now a military about-face. We're going to see where the army mom is headed now.
It's 12 minutes after the hour.
(COMMERCIAL BREAK)
ROBERTS: It is now 14 minutes after the hour. A lot going on in the next few hours. Let's fast forward to stories that we'll be making news later on this morning.
At 10:00 a.m. Eastern, the National Association of Realtors releases its home sales numbers for January. Economist say it could be an early sign that the housing slump will extend well into a fourth year.
Also at 10:00, Fed Chairman Ben Bernanke will testify before a congressional hearing on the challenges of the federal budget. The president's budget chief, Peter Orszag, will also be on Capitol Hill defending the White House blueprint.
I'm going to cough up a hairball here.
9:45 Eastern, President Obama will pay a visit to the Department of Transportation. He's expected to speak about how the bailout package highlights the transportation industry by creating jobs and boosting infrastructure. Vice President Biden will also be in attendance.
Then at 11:30 Eastern, the president heads back to the White House to meet with British Prime Minister Gordon Brown. They'll be discussing the global impact of the economic crisis and international partnerships with Mr. Brown pushing for a global new deal.
Our Suzanne Malveaux live at the White House for us this morning with more details on all of this. And atmospherics, I think, too, Suzanne, will be a big part of today's visit.
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Absolutely, John. We'll be looking at the body language as well as the language that these two leaders use. They're going to be talking about issues like climate change, the war in Afghanistan and, obviously, the top issues for these two leaders is going to be about the economy.
(BEGIN VIDEOTAPE)
MALVEAUX (voice-over): President Barack Obama and British Prime Minister Gordon Brown are determined to change the game, turning from partners in war to partners in peace. On the of this historic visit, Brown had this to say.
VOICE OF GORDON BROWN, BRITISH PRIME MINISTER: I know that past prime ministers have gone in times of war to talk about war. What I'm going to do is to talk about how we can work together at climate change, the economy, and security for the future. MALVEAUX: Their new focus, the economic crisis that plagues both nations. Brown comes armed with a so-called global new deal, ideas on how to reform the crumbling financial institutions in London and New York.
BROWN: If America and Britain did the same or similar things to deal with the economy, then the effect of that will be magnified by all of us doing it together.
MALVEAUX: Mr. Obama is listening. After all, it was Britain that took the lead in recapitalizing its own failing banks. The U.S. followed suit.
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: The impact of this recession is real and it is everywhere.
MALVEAUX: But both countries are in trouble and Obama is eager to set a common agenda with Brown before he visits London in April for a global economic summit. The two leaders will also try to find common ground on climate change, fighting poverty and the war in Afghanistan.
"The Times" of London says Gordon comes bearing a gift for Mr. Obama, a wooden ornament carved from a British ship that was used in the 19th century to suppress the slave trade. It replaces the last gift from Britain that sat in the Oval Office, a bronze bust of the war leader, Winston Churchill, who President Bush adored. President Obama had that removed.
(END VIDEOTAPE)
MALVEAUX: So John, obviously a different tone perhaps here at the White House later today. This is not the first time these two leaders have met. We saw then candidate Obama when he was visiting Europe, the two of them having a meeting there, talking about some of their mutual interests -- John.
ROBERTS: Suzanne, also some other breaking news this morning there from the White House, something about the missile defense shield, Russia and Iran? What's that all about?
MALVEAUX: Absolutely. We're actually getting new details about this letter that was sent three weeks ago, Barack Obama to the Russian president, simply saying that look, the position of the new administration is that this missile defense system that would be positioned in Poland and the Czech Republic, right in Russia's back yard, may not be actually necessary if the nuclear threat from Iran was reduced and that Russia could have a positive role in actually cooperating with the U.S. to make sure that the Iranian threat is reduced or eliminated.
Now, U.S. officials I spoke with this morning say it's not a quid pro quo necessarily, but this is something that they are trying to offer some sort of incentive to Russia to say look, there is another way out of this missile defense system. We want you to consider this, all this in preparation for when these two leaders meet in April in Europe -- John.
ROBERTS: Certainly have lots to talk about during that meeting. That will be a great trip to be on.
Suzanne Malveaux for us live at the White House this morning. Suzanne, thanks so much.
MALVEAUX: Sure.
ROBERTS: Forgive my voice and everything this morning.
CHETRY: You were hanging out with cats again.
ROBERTS: I went to a next door neighbor's for dinner on Saturday. There were two cats and three dogs there and I'm like...
CHETRY: So you're allergic to cats? You're like...
ROBERTS: I feel like I inhaled an entire cat. That's how I feel.
CHETRY: You know what you need? You need a Portuguese waterdog. There you go, just like the Obamas.
ROBERTS: Either that or I just need a hose to rinse myself out, one of the two.
CHETRY: Well, here's a challenge for you. How do you keep 10 million people from cursing for an entire week? Well, it's a campaign to clean the air, if you will, in the most populated county in the nation.
(BEGIN VIDEO CLIP)
ALINA CHO, CNN CORRESPONDENT: I'm Alina Cho. Au revoir cuisine, hello home cooking. In this bad economy, even food and wine magazines are changing course. So what are they doing? I'll have that story on the Most News in the Morning.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
ROBERTS: Live look outside of Columbus Circle just outside of the New York headquarters of CNN and baby, it's cold outside. Fourteen degrees right now. So much for spring. Twenty-six degrees and partly cloudy a little bit later on today.
Welcome back to the Most News in the Morning.
People across the Northeast digging out right now after that massive late winter storm that hit us yesterday. Still a foot or more of snow on the ground in many places. Air travel, we're hopeful, will get back to normal later on this morning.
We're also monitoring overseas markets this morning, which don't look like they're going to get better any time soon. Stocks in Japan and Hong Kong closed lower. London's FTSE is in negative territory.
Meantime, the bear is growling big time on Wall Street. The Dow starts the day at a 12-year low. It sliced through the 7,000-point mark with a 300 point nosedive on Monday.
The Centers for Disease Control is reporting this morning, you're going to want to hear this, the most common flu strain is now nearly 100 percent resistant to the most widely used flu medication Tamiflu. Last year it was just 12 percent resistant. Studies say it's not clear why the virus changed.
CHETRY: Did they say anything about whether the flu shot people got this year is helping?
ROBERTS: No, it's just the Tamiflu thing.
CHETRY: Right.
ROBERTS: That's all.
CHETRY: That's what you get if you didn't get the flu shot, right?
ROBERTS: Yes.
CHETRY: And you think you got the flu.
All right. Well, here's a question for you this morning. Can 10 million people not say a single curse word for an entire week?
Well, the Los Angeles County's board of supervisors is issuing a proclamation to make the first week in March what they call "No Cussing Week."
Our Kara Finnstrom is with a 15-year-old high school boy who started it all with a No Cussing Club at school.
(BEGIN VIDEOTAPE)
KARA FINNSTROM, CNN CORRESPONDENT (voice-over): McKay Hatch is 15, doing spots on Jay Leno, running the celebrity circuit.
MCKAY HATCH, FOUNDER, NO CUSSING CLUB: It's kind of cool being in a dream (ph), you get free soda and water.
FINNSTROM: And interviewing live right here on CNN.
(on camera): What do you think about getting this much publicity?
M. HATCH: I mean, it's great, because just, you spreading my word more and more.
FINNSTROM (voice-over): Hatch's rock star status was launched by a message he feared might be considered uncool.
M. HATCH: When I got to middle school, all of my friends started cussing. Friends using, you know, every other word.
PHELICIA HATCH, MCKAY HATCH'S MOTHER: He was like, everybody is using the cuss word. They feel like if they don't that they're not cool. And I said well, I think you have, you know, a choice.
M. HATCH: So I challenged my friends and told them you know, if you want to hang with me I don't want to hear you cuss.
FINNSTROM: Hatch's friends not only stopped, they wanted to influence others and started a No Cussing Club.
M. HATCH: Words have a lot of power. I mean, they can determine where you're going to end up going in life or who is going to be your friends.
FINNSTROM (on camera): The little club Hatch started here at his high school caught on. Other schools started forming their own chapters, and his club has now swollen to more than 30,000 members, students from all 50 states and all around the world.
(voice-over): Hatch has a Web site, a book, even a rap song on YouTube.
(BEGIN VIDEO CLIP)
(MUSIC)
(END VIDEO CLIP)
FINNSTROM: And his hometown of South Pasadena has declared this "No Cussing Week."
UNIDENTIFIED MALE: People can really do get their point across without cussing.
FINNSTROM: Hatch believes the same self-control students show by not cussing can help them later say no to other social pressures like drinking and drugs.
M. HATCH: It's a great job. This is kind of what keeps me going.
FINNSTROM: But there's also been a backlash. Offensive e-mails, online taunts, even death threats that have gotten police involved. Hatch won't be bullied into silence. Words, he says, are just too important.
M. HATCH: Stay positive, things (INAUDIBLE) instead of always, you know, tearing them down, you know, hopefully you try to use language to kind of uplift people.
FINNSTROM: Kara Finnstrom for CNN, South Pasadena, California.
(END VIDEOTAPE)
CHETRY: Good for him. You know what? I mean, you know, deciding hey, I'm going to try to do something different and try to go against the grain all the kids, every other word, he said. They look a little bit young, though, to be cursing every other word.
ROBERTS: You know, it starts earlier and earlier. And I think it's great that he's taking a stand on this sort of thing, you know?
CHETRY: Rock on. Could you do it for a week?
ROBERTS: Not cuss for a week?
CHETRY: Yes.
ROBERTS: We'll start with two minutes and then work our way up from there, could we?
CHETRY: Right. And we need to get one of those beep, beep. Let's have a walking sensor.
ROBERTS: That's good -- it's good to be on the air for three hours a day because you know, there's seven words you can't say on TV. And --
CHETRY: Exactly. Exactly. And at home with young kids, too, you think of a lot of creative things to say like h-e double hockey sticks. Instead of...
ROBERTS: There you go.
CHETRY: Time now to check on the top videos on CNN.com. The most popular is this hovercraft rescue. A Connecticut woman trying to free her car from a snowbank, rolls -- I just was figuring that one out -- rolls into an icy river. She was stranded in the frigid water for 30 minutes before police came to her rescue with the hovercraft. All right. Well, she was rescued, I (INAUDIBLE).
(INAUDIBLE) saved dozens of whales and (INAUDIBLE) dolphins who beached themselves. Volunteers from the community, even tourists helping out. Rescuers were able to get 20 of those whales back to the sea in just one afternoon.
And this guy literally has cold feet. He is running in the snow and ice with no shoes or socks. It's all for a charity that provides wheelchairs to needy people in developing countries. Look at him go.
ROBERTS: That is hard.
CHETRY: I know. He says his feet don't even feel that cold and the snow is actually cushy. How about that, in shorts to boot?
Well, those are your most popular videos. It's 28 minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: Welcome back to AMERICAN MORNING. It's 7:30 here in New York. We have a lot to cover this morning, and here's what we're breaking down for you in the next 15 minutes.
In Pakistan, dozens of masked gunmen with grenade launchers ambushed Sri Lanka's cricket team. There are now conflicting reports coming from this chaotic scene this morning. By all accounts, at least six security officers and a civilian were killed. Eight team members were injured as the cricket players were headed to a match against Pakistan's national team.
Also just in, details of a secret letter that President Obama sent to Russia's president last month. The White House confirming this morning that the president asked Dmitri Medvedev to help stop Iran from developing long-range nuclear weapons and in exchange he suggests that he would back off plans to deploy a missile defense system in eastern Europe. We're waiting for Moscow to respond now and we'll have that as soon as we get it for you.
A brand new development in a racially charged case, a $50 million civil rights lawsuit filed by the family of Oscar Grant. He is the 22-year-old unarmed man who was shot in the back and killed on a train platform by a former transit cop in Oakland, California. The new year's day shooting was captured on cell phone video and drew national attention and sparked violent street protests.
And that's what's on our agenda this morning.
ROBERTS: Clinging to a capsized boat for two days an amazing sight at sea as rescue teams saved Nick Schuyler, one of four men lost in the Gulf of Mexico, two NFL players among them. His overjoyed mother talked about the inspiration that kept Nick alive.
(BEGIN VIDEO CLIP)
MARCIA SCHUYLER, NICK SCHUYLER'S MOTHER: I passed out. I went down. I went and saw him first and he told me, "mom, I kept saying you're not going to go to my funeral." He said that's what kept him hanging on.
(END VIDEO CLIP)
ROBERTS: Schuyler is now recovering in a Tampa area hospital this morning as the Coast Guard hopes for three more miracles. Coast Guard captain Timothy Close joins us now from St. Petersburg, Florida. Captain, it's good to see you this morning. You're still out there searching for three other men, Marquis Cooper, Corey Smith and William Bleakley. What's the status of the search? Where are you looking? What sort of assets do you have out there looking?
CAPT. TIMOTHY CLOSE, COMDR., ST. PETERSBURG SECTOR: We searched all night. Currently we have a Coast Guard fixed-wing C-130 and Coast Guard helicopter from Air station Clearwater out searching as well as three coast guard cutters. The cutters searched all night and are continuing and they were joined by the two aircraft this morning. The search continues.
ROBERTS: What's the area that you're searching in, in relation to where Nick Schuyler was found clinging to that boat yesterday? CLOSE: Obviously the location of the boat has a pretty significant impact on reducing the search area for us. We didn't have an exact position where the boat was at the time that they were reported overdue so finding it, to refine our models and substantially reduce the search area down to where the boat was found and around there.
Some of our computer models continue to show us where somebody in that location or a person in the water in that location might have continued to drift so we're blanketing that area very heavily.
ROBERTS: Have you been able to get any more information from talking to Nick Schuyler about the situation there? My understanding of it is some earlier information that they were clinging to the boat all four of them for as long as 16 hours. Has he been able to fill in some of the blanks as to what happened after that?
CLOSE: Yes, sir, he has been able to fill in a couple of the blanks. We asked him some basic questions when we picked him up on the Coast Guard cutter Tornado. Initially, but a quick assessment that he needed to be medically evacuated. So we had one of our helicopters pick him up off Tornado and take him right to the hospital.
We had some of our folks interview him at the hospital right away to try to get more information. He was able to provide us some information about where the vessel was, that it was anchored and then capsized and also was able to tell us that at least at one point all four of them had life jackets on -
ROBERTS: Right.
CLOSE: So that was, he obviously very, very physically exhausted.
ROBERTS: I imagine he was. So what happened to the other three, did they just lose their grip and float away? Did you have any idea how long they might have been adrift?
CLOSE: Yes, no, sir. I don't have a whole lot of detailed information on that.
ROBERTS: Right. But we know that the water temperature there is sort of in the mid to high 60s, maybe a maximum of about 68 degrees. We saw that Nick Schuyler was mostly out of the water, his lower legs were still in the water. He was clinging to that outboard motor in the capsized craft. The other three would be immersed in the water. What's the survivability in waters that temperature?
CLOSE: Sir, I don't want to get into too much speculation about that. Important for us right now is to concentrate on the search which is still very active and ongoing.
ROBERTS: Right. What about this idea that they were big guys, they were in very good physical shape, does that help their survivability out there? CLOSE: Yes, sir, absolutely does.
ROBERTS: I mean, you know, if you look at Nick Schuyler, he was in the water an awfully long time. I've been in 68-degree water and I'm sure you have too. It's cold. So, I mean, hypothermia obviously a concern here. What other concerns are we dealing with in terms of the physical effects of being out there that long?
CLOSE: Well, sir, hypothermia and then dehydration are the two primary concerns. We take that into account which is why as soon as we got this report we responded immediately and we responded with a lot of Coast Guard assets. We are searching very heavily right from the start and are continuing.
ROBERTS: All right. Captain Tim Close for us this morning from the U.S. Coast Guard in St. Petersburg. Captain, good luck to you this morning. We hope that your search is successful. Everybody's praying for those three men. Appreciate it.
CLOSE: Great, thanks very much.
ROBERTS: Kiran.
CHETRY: Absolutely.
All right. Well still ahead a big about-face for one military mom she reported for duty but had to bring her two little kids with her. Now, we're going to tell you her new orders. It's 35 minutes after the hour.
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JAY LENO, HOST, "THE TONIGHT SHOW WITH JAY LENO": The stock market went down 299 points today. Ooh, man. I don't want to say things are bad, I don't want to be one of those negative people but you see who rang the closing bell today? Take a look. This is pretty bad.
UNIDENTIFIED MALE: Oh, no.
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ROBERTS: You know that one was coming. Didn't you?
Jay Leno in the misery for all of us who have money in the markets and falling 401(k)s. And this morning as the recession continues to eat away at your money, more and more folks have found a recipe for savings, home cooking and it's affecting how the publishing industry does business and who better to walk us through that this morning than our own resident recessionista and fashionista and gastronomicsta.
CHO: Well, not really. You know they say there are now...
CHETRY: Recipes that even I can do.
CHO: Exactly. Good morning, guys. Good morning, everybody. You know, it is no secret that the bad economy is forcing more and more Americans to abandon restaurants and eat at home. And that's affecting just about everything including the publishing industry. Food and Wine magazines that once focused on wines from burgundy and five-star restaurants are these days all about comfort in the kitchen, just another way the economy is hitting home.
(BEGIN VIDEOTAPE)
CHO: Au revoir cuisine, hello home cooking.
DANA COWIN, EDITOR-IN-CHIEF, "FOOD & WINE": Right now, they want value, value.
CHO: that's exactly what "Food and Wine" Editor-in-Chief Dana Cowin is giving readers. A major shift from just a year ago, back then --
COWIN: We would take you to India and assume you might be buying a plane ticket and now we hope you buy the plane ticket but we also give you the recipes so you can make India at home.
CHO: Translation.
COWIN: We'll take chef recipes and we will make them easy. We translate them for the home cook.
CHO: There's growing evidence people are cooking at home, enrollment in the Viking cooking school basics classes is up 325 percent in February of this year, compared to the same time last year. U.S. frozen food sales hit an all-time high in 2008, accounting for more than 13 percent of all meals consumed. And Google reports just as the Dow rises and falls, so, too, do searches for tuna noodle casserole.
RUTH REICHL, EDITOR-IN-CHIEF, "GOURMET": People are in a mood to be comforted, and you aren't comforted by fancy food. You're comforted by things that remind you of what your mother cooked.
CHO: The new haute cuisine is cheap and easy, amazing pot pies, foolproof recipes. Bottom line, come home to dinner. "Gourmet" magazine features the idea it doesn't cost a lot of money to eat well.
REICHL: How to take two chickens and make four meals for four people out of the two chickens and next month we tell you how to make really fabulous desserts out of three eggs and two lemons.
CHO: "Food and Wine's" Cowin says in this bad economy, people who love food are going one step further, lose a job, find a passion.
COWIN: People who have gotten maxed out of their career doing something that might go away like, I don't know, banking, and open a small food shop or you know start catering, because it's things that people actually love. (END VIDEOTAPE)
CHO: You know the editor-in-chief of "Gourmet" says the mission of the magazine has always been to get people to cook at home. But right now they want are recipes that don't cost a lot of money. She said even those people who do have money, interestingly enough, are embarrassed to offer lavish meals right now. People want comforting food which is why you're seeing more and more recipes for pot pie, meat loaf and mac and cheese food that people want to eat right now. The magazines, of course, are responding in some cases, guys, with recipes for $10 or less. And I like to say the best thing that I make, a reservation, but --
ROBERTS: You're not getting into the home cooking craze?
CHO: You know what, I'm thinking about enrolling in a basics class. I've been wanting thinking about it but I just say do it. It's time.
ROBERTS: Kiran can show you how to cook some things.
CHO: I am trying to cook more and more at home, not successfully.
CHETRY: I totally can get you to (INAUDIBLE) I know easy and you don't even have to think about it.
(CROSSTALK)
CHETRY: I remember when Alina and I first met when I first came on the show she said to me, "I'm going to cook a steak tonight for this guy I met." I said, really? And she said, where do I get a pan to cook this steak?
CHO: You know what...
CHETRY: And I said, oh, Alina.
CHO: Oh, my God.
ROBERTS: Come over to my place, I'll give you lesson, it's easy, a bowl, some hot water and a microwave...
CHO: A microwave.
ROBERTS: The easy mac in and the water on top.
CHO: You're going to get it.
CHETRY: You came back the next morning and you said it turned out to be successful.
CHO: It did.
CHETRY: So you have the basics.
CHO: That's right. So send over those five now.
(LAUGHTER)
CHETRY: Thanks, Alina.
Well, here's what we're working on for you this morning. There's been a dramatic increase in food allergies among children but is it possible that parents are too concerned about their kids being allergic to things like peanuts? Well, we'll talk about it with Dr. Gupta, because it seems that we're hearing about this more and more these days. Hey, Sanjay. All right. It's 43 minutes after the hour.
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CHETRY: Welcome back to the Most News in the Morning. And the federal health officials are reporting food allergies among children are increasing at an alarming rate and peanut allergies are of particular concern for parents. We're "Paging Dr. Gupta" this morning. He's just back from India and he's at the CNN Center in Atlanta. Hi, Sanjay. Great to see you this morning.
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Thanks, good morning.
CHETRY: I saw the story and I really wanted to ask you about it. Because there is a lot of concern among parents about peanut allergies. My three-year-old daughter also has them as well, and the number of people who die from them is relatively low, but it is very worrisome for parents and actually time consuming, I know schools go through this as well, keeping all of these environments peanut-free. Why when we were little did we have peanut butter and jelly sandwiches every Friday?
GUPTA: Yes, you know, it is interesting. It does seem to have been a rise in peanut allergies overall. And there is concern about peanut allergies in sort of a larger scheme. First of all, they are relatively common allergies. The second is I think you're alluding to, you know they can potentially last a lifetime, where there other food allergies that children may outgrow.
They can be very severe. These can be very frightening reactions for sure and I think the numbers have started to increase. There may be lots of different reasons for that, but if you take a look at some of the numbers overall, you'll see that, for example, even just 10 years ago, these are the number of children who are hospitalized and subsequently discharged from the hospital and you can see this trend pretty significant, all of a sudden takes a significant uptick and this is just over the last few years.
So there has been some change in peanut allergies, food allergies overall. Exactly why that is, is a little bit more unclear. But your daughter in some ways, a perfect example. I don't know how severe her reaction was but they can be pretty frightening to watch. What happened to your daughter? CHETRY: The way that it worked our pediatrician warned us that in general, when you're first introducing peanuts to little babies, you know, after they're one-year-old to just try a little bit and see. And I gave her the amount probably half the size of my pinky nail, and she immediately broke out in hives. So I mean, I knew from then on avoid peanuts but it's actually easier said than done.
GUPTA: It is. And that's one of the problems when it comes to peanuts in particular is they are ubiquitous. I mean, you really have to read labels. Obviously, sounds like you were being very good about it. But if you go to any kind of grocery store and look at the labels, there can be small amount of peanut oil. There can be peanuts themselves in lots of different foods. That's one of the concerns.
The other concern again is that because of the nature of peanuts and because of the nature of preparation if you roast it, for example, you can really elicit a pretty profound reaction. So again these reactions they can have can be frightening. While the numbers overall as you saw, they are not huge numbers but you know, you can get deaths from this. There is also something known as the hygiene hypothesis.
We may be keeping our kids less exposed to things nowadays as compared to years past. That less exposures might make those allergies all worse down the line.
CHETRY: Good point. Yes, because parents are searching for an explanation, let's put it that way but in the meantime we carry our epi pens with us and if you have a kid with peanut allergies you know what I mean.
GUPTA: That's right.
CHETRY: All right. Sanjay, thanks so much.
GUPTA: Thank you.
ROBERTS: Hooked on porn. In the Bible Belt, the pastor opening up about an addiction that usually stays behind closed doors, closed and locked doors. It's 49 minutes now after the hour.
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ROBERTS: Well, everyone knows that the Army has age limits. So a military mom caused quite a stir after reporting for duty with her little boy and girl in tow. And the story doesn't end there. Our Pentagon correspondent Chris Lawrence has got the new orders for the Army mom.
CHRIS LAWRENCE, CNN PENTAGON CORRESPONDENT: John, Kiran, this military mom wanted to be discharged and it looks like she is going to get her way. But there is still one question left to be answered.
(BEGIN VIDEOTAPE)
LAWRENCE (voice-over): Her first stint in the army lasted over three years. Her second may not last three days. The Army is discharging a military mom who reported for duty with her kids.
LISA PAGAN, MILITARY MOM: That's what all of this is all about is just them. What is in the best interest for them.
LAWRENCE: Army Specialist Lisa Pagan's active duty ended in 2005 but as part of the ready reserve, she was eligible to be recalled until 2010. The North Carolina mother was ordered to report to Ft. Benning, Georgia by Monday.
PAGAN: Am I the only soldier that, you know, that they can't find anybody else?
LAWRENCE: Now a civilian but also eligible to be recalled Pagan's husband travels constantly from work, some times days at a time.
PAGAN: My husband has been to Iraq. You know, it's not like our family hasn't already given, have sacrificed many things. He missed like almost the first year of his daughter's life, you know, just like many other soldiers.
LAWRENCE: Their families live out of state. So when she was ordered to report to Georgia, Pagan wondered how she could serve her country and care for her kids. So she took them and national media attention with here. Driving four hours on snowy roads to Ft. Benning, Pagan's attorney said when she met with commanding officers they told Pagan, the Army is starting the process to discharge her.
Mark Waple tells CNN, "It is an unusual situation. I think this should have been resolved in July 2008." That's when the Army denied Pagan's first appeal for an exemption. But that's not always the case. Since September 11th, 2001, the Army has recalled about 25,000 soldiers. Nearly half requested a delay or a full exemption, which the Army granted more than six out of 10 times.
(END VIDEOTAPE)
LAWRENCE: Pagan's attorney tells us that she and her kids have been staying at a motel near the base while this paper work is completed. But, today, she expects to move on to base housing for as long as it takes. The big question still out there, will she get an honorable discharge or a general discharge under honorable conditions? Not much of a difference there in her case. The big thing is she can't be called up again. John, Kiran?
CHETRY: Chris Lawrence for us this morning. Thanks so much.
Well, hooked on porn in the Bible Belt? One pastor is opening up about an addiction that usually stays behind closed doors. It's 54 minutes after the hour.
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CHETRY: Porn in the USA. Who is logging on to adult entertainment Web sites? Well, a new survey says that when it comes to online porn, it's popular no matter where you live in the U.S. but it's slightly more common in so-called red states.
Pastor David Erik Jones is himself a former porn addict, and he also wrote a book about his addiction called "My struggle, your struggle." Pastor Jones is joining us from his church, First Baptist, in Jayton, Texas. And thanks for joining us this morning, Pastor.
Probably not easy to talk about.
PASTOR DAVID ERIK JONES, AUTHOR "MY STRUGGLE, YOUR STRUGGLE": Thank you.
CHETRY: Why did you decide first of all to come forward about your on-line porn or rather your porn addiction in general?
JONES: Well, I think it's something that needs to be talked about. We need to bring these things out in the open so that we can deal with them and get the help we need and there are a lot of people who deal with this who think that they're the only ones.
CHETRY: I got you. And tell us what is the appeal in your opinion about porn. Why do people turn to porn that would seem otherwise happy, well adjusted?
JONES: Well, you know, we're all sexual beings. We're all created equally. We all have sexual desires and pornography taps into that. And there's a certain secretness that makes it attractive and it taps into our sinful natures in that it pulls at the very core of who we are. And I think that's why pornography is so attractive to people.
CHETRY: All right. I want to talk about this study because this is interesting. The study of anonymous credit card receipts found at the state with the highest subscription to adult content site. It was Utah with 5.5 subscriptions per thousand homes. Montana, the least with 1.9, two subscriptions for a thousand homes.
So there's not much variance but what does it say that states tend to be more conservative and religious actually consume more porn?
JONES: Well I think there's two factors. First of all you have access. The conservative states tend to be more rural. They're going to have less sexually oriented businesses and there is a social stigma that would prevent people from going out in public to look for pornography. And so that would tend to lend people to Internet pornography because they would be wanting to do this privately.
Also, I believe there's a lack of awareness or openness in conservative states. People don't like to talk about this. Christians and conservatives would rather sweep it under the rug and act like it's not there. And again, that lends to underground activity or secretive activity and that, in itself, can be harmful because that would produce more addictive behavior...
CHETRY: Right.
JONES: And I think those two factors would be important. CHETRY: Talk to the hypocrisy that some people say is out there. The people who tend to be the most outraged may in some ways be the largest consumer of the very things they are outraged by, how do you - how do you square that?
JONES: OK. Well, you know, we feel very strongly, all of us, whether liberal or conservative. And there are times whenever the things we feel strongly about, we're still attracted to or those things appeal to us. And we're fighting within ourselves, and, unfortunately, sometimes, that comes out in the wrong ways and we judge people or we hold other people to a higher standard than ourselves.
Whether you're conservative or liberal, you still have those same urges within your humanity. And sometimes, again, as conservatives, we feel very strongly about this, and because of the social stigma and our values, we try to hide it. And instead of facing it with ourselves or facing it within our churches or our homes, we tend to try to fight it with being more aggressive. And sometimes that comes out as hypocrisy.
CHETRY: And it's interesting, though, because that's all the more why it's fascinating that you actually came forward, you want more people to know, as you put it in your book, "My Struggle, Your Struggle," that you're not alone if these are issues that you're dealing with.
Thanks for talking to us this morning, Pastor David Erik Jones from First Baptist Church in Jayton, Texas. Thanks for your time.
JONES: Thank you.
