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American Morning
Obama Considers Options in Taking the Fight to Pirates; President Obama to Make a Pitch on the Economy; Passenger Lands Plane After Pilot Dies in Cockpit; Goldman Sachs Posts Profit, Intends to Repay Taxpayers; Travel Restrictions Lifted on Cuba: Is Cuba Ready for Americans?
Aired April 14, 2009 - 07:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KIRAN CHETRY, CNN ANCHOR: And we're coming up right now on two minutes before the top of the hour. We want to say welcome once again. It's Tuesday, April 14th, I'm Kiran Chetry.
JOHN ROBERTS, CNN ANCHOR: And good morning to you. I'm John Roberts. Two more days to get your taxes done. And here's what's on the agenda this morning. The big stories that will be breaking down for you in the next fifteen minutes.
First breaking overnight, word that Somali pirates have hijacked three more ships in the Gulf of Aden, off of the Coast of Somalia. One of them now identified as the Greek-owned M.V. Irene. And Egypt's foreign ministry now reporting two of its fishing vessels have been seized by pirates.
New this morning, the audio tapes from an incredible emergency landing. A passenger with limited piloting experience takes the controls after the pilot dies in midflight. Fortunately, air traffic controllers were able to coach the passenger who then became the pilot to a safe landing.
And Fidel Castro now responding to President Obama's looser rules on traveling to his country saying, "The harshest of measures remain in place." He was talking about the economic blockade in place since the cold war years.
CHETRY: All right. Well, there are new developments overnight as well after a flawless pirate rescue at sea. The crew of the Alabama will soon reunite with its captain. And the crew arrived at a hotel in Mombasa, Kenya, just a couple of hours ago. That's where they reportedly celebrated their skipper's freedom over beers and a barbecue.
Meantime, the captain who risked his life for their safety is on the USS Bainbridge. He's alive and well, and headed back to shore. All of them expected to reunite on land and come home as a crew.
Well, the captain's wife also received the news, Sunday, and said it was the best Easter ever. She also gave thanks to the, quote, "real heroes," she called them, who saved her husband.
(BEGIN VIDEO CLIP) ANDREA PHILLIPS, RESCUED CAPTAIN'S WIFE: I just want to thank you for allowing us to come out here in front of you like this and make our statement as a family together. I just want to let you know I spoke to Richard earlier today. And he was kind of funny. He's funny. But when I told him that I was preparing a press statement, because I actually have laryngitis -- because he knows that it would be probably very hard for me to be up here and talk to you. So I'm going to leave it with that. Again, thank you.
(END VIDEO CLIP)
CHETRY: All right. So there you heard from his wife. Clearly, emotional as she was thanking everyone for making sure her husband was brought home safe and sound.
Meantime, President Obama authorized lethal force against the Somali pirates if the captain was in imminent danger. Now the president is also considering options for going after the pirates on land in a lawless place that brings back some very bad memories, of course, for the U.S. military.
Chris Lawrence joins us live now from the Pentagon. And, of course, we're talking about the situation in Mogadishu.
CHRIS LAWRENCE, CNN PENTAGON CORRESPONDENT: Exactly. Exactly, Kiran. But, again, the Pentagon officials are looking at a variety of options -- troops, aircraft, more ships. In conjunction with other departments like State and Justice that are looking at ways to help the Somali government and ways to try these pirates. But you've made me surprise to learn why the shipping companies may not be ready to pull their own weight.
(BEGIN VIDEOTAPE)
LAWRENCE (voice-over): This 1993 attack is how most Americans think of U.S. troops in Somalia. But any action taken against today's pirates would be vastly different.
BRIG. GEN. MARK KIMMITT, U.S. ARMY (RET.): The capabilities possessed by the United States military today are dramatically enhanced and improved over what we had in our first foray into Somalia.
LAWRENCE: Today's military has better aerial surveillance and unmanned drones.
CHAS HENRY, U.S. NAVAL INSTITUTE: Quick, targeted special operation strikes would do much more to very quickly bring the piracy to an end than would very spotty enforcement at sea.
LAWRENCE: A U.N. resolution authorizes American operations inside Somalia with good intelligence. Defense officials are outlining a variety of options but say piracy is a crime, not an act of war or terrorism. The commander of the anti-piracy task force says the shipping companies themselves have to do more to deter pirates, whether it be basic maneuvers or stringing barbed wire along their ships.
VICE ADM. WILLIAM GORTNEY, U.S. NAVY: And ultimately, an armed security detachment to protect their property as they do protect their property on the beach.
(END VIDEOTAPE)
LAWRENCE: Here's the wrinkle, though. About 30,000 ships passed through the Gulf of Aden last year. There were 42 successful pirate attacks, 42. So even though these companies are paying more in insurance, they paid $18 million, $30 million in ransom, that may still be cheaper than outfitting all the ships with private armed security teams -- Kiran.
CHETRY: That's just the unbelievable reality, huh? All right. Chris Lawrence for us this morning, thanks so much.
And the fate of the only surviving Somali pirate is unknown this morning. Law enforcement sources though tell us that the U.S. is weighing its options and also potential legal hurdles. Here they are in an "AM Extra."
Right now, the Somali pirate remains in military custody and could be turned over to Kenya or to the FBI to face criminal charges either in New York or Washington. But proving the young man's age could be difficult. The suspect is reportedly anywhere from 16 to 19 years old, of course, a big difference here at home.
JOHN ROBERTS, CNN ANCHOR: President Obama delivering a major speech on the economy in just a few hours from now. We're expecting to hear a positive message from the president. With talk of economic progress, the president already insisting this week that he is starting to see hopeful signs.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: We have also seen this month people starting to get their first checks in terms of the tax cuts that were initiated through the recovery package. And when you combine it with the other efforts that are being made across the country for infrastructure projects, for the kinds of innovative energy programs that were part of the recovery package, what you're starting to see is glimmers of hope across the economy.
We passed the American Recovery and Reinvestment Act, the most sweeping economic recovery plan in history, a plan to save or create 3.5 million jobs putting Americans back to work doing the work America needs done. Today, I think it's safe to say that this plan is beginning to work.
(END VIDEO CLIP)
ROBERTS: Live from the White House now, our Suzanne Malveaux with more on the president's pitch this morning.
And, Suzanne, the president has certainly struck a more optimistic tone in recent days than he did earlier. Is this a case of if you say it enough, if you say that the economy is in good shape enough, it might just actually come true?
SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: That's certainly what they're hoping, John. They have seen some good signs, some optimistic signs.
Obviously, we heard from President Obama yesterday talking about those 2,000 construction projects, some things that are under budget that are happening a little bit faster than they expected. But we're not going to hear any new policy initiatives today. That the president is really using the opportunity to check in with the American people to say here is where your tax dollars are going. Here's what we believe is working.
And he's also going to say, too, that there's still thousands of people who are losing their jobs and it's a difficult way to go. But I think the reason why you're seeing this happen now is because he really wants people to know he's still paying attention to this very important issue.
Last week, he was in Europe. He's going to be heading to Mexico and Trinidad later this week. He wants to make that connection, saying, look, these overseas trips also have to do with the economic situation here. I'm paying attention to this. And that there are some signs of this economic stimulus package which so many people have questions about that it may actually be working, John.
ROBERTS: All right. So, economy, shmeconomy. People really want to know what's going on at the White House today when it comes in the form of four feet and four paws on the ground.
MALVEAUX: And I've been asking about that, John. I've been asking all the White House aides about the dog, Bo, when is he coming? I've learned that he is not yet here at the White House right now, but he's coming this afternoon. That makes a lot of sense because Sasha and Malia will come home from school. A good chance to get a good picture of the two of them with the new dog, Bo. And so, we all anxiously await.
ROBERTS: All right. We're looking forward to that this morning. Suzanne Malveaux, thanks so much.
MALVEAUX: Sure.
ROBERTS: By the way, we'll be carrying President Obama's speech on the economy live at 11:30 Eastern this morning. You can check it out on-line at CNN.com. And if they do some sort of a public event on the arrival of Bo Obama, I'm sure that we'll be carrying that live for you as well.
CHETRY: Of course.
All right. Well, you expect inconveniences when you fly these days. There's no food, long lines and delays. But odds are, you would never expect this. A man traveling with his wife and two daughters took off from Marco Island, Florida. He headed from Jackson, Mississippi. Thirty minutes later, something happened to the pilot, something awful. Our Jason Carroll joins us now with more on the story.
Good morning, Jason.
JASON CARROLL, CNN NATIONAL CORRESPONDENT: Really incredible story playing out 10,000 feet in the air. It sounds like a scene straight out of a movie.
A passenger is forced to land a plane after the pilot dies midflight. It really happened to passenger Doug White, his wife and two daughters. They took off from Marco Island, Florida near Naples. Thirty minutes into the flight, the pilot slumps over and dies. White told his family to pray and used the radio to call air traffic control.
(BEGIN VIDEO CLIP)
AIR TRAFFIC CONTROL: November niner delta whiskey, are you using the autopilot or are you flying the airplane?
DOUG WHITE, AIRPLANE PASSENGER: Me and the good Lord's hands are flying this niner delta whiskey.
AIR TRAFFIC CONTROL: OK, very good. Thank you.
(END VIDEO CLIP)
CARROLL: White was licensed to fly a smaller plane but needed a lot of help handling the larger, faster, two-engine turbo prop. Two air traffic controllers, one with experience as a pilot and flight instructor coached him through it all.
(BEGIN VIDEO CLIP)
AIR TRAFFIC CONTROL: And Nine delta whiskey, on the instrument panel is there a landing checklist?
WHITE: No. I'm not worried with that right now. I'm heading one, four, zero at 6,000 right now. I can put the gear down and the flaps.
AIR TRAFFIC CONTROL: OK, they're telling me you're a little too fast for the gears, so hold on just a moment on the gear and I'll call you back in just a minute. We've got plenty of room before we get you to the airport. This will be landing at runway six at Fort Myers International and hold the gear for just a moment.
WHITE: Oh, I was going to. I'm just telling you I know where the gear control is.
(END VIDEO CLIP)
CARROLL: You can hear there, White seems to remain calm during the last crucial moments before landing the King Air in Fort Myers International Airport.
(BEGIN VIDEO CLIP)
WHITE: When I touch down, if I ever touch down, do I just kill the throttle or what?
AIR TRAFFIC CONTROL: That's correct. When you touch down, slowly kill the throttle.
Nine delta whiskey, the runway is all yours. You can turn left or right, whatever is easier for you. Power all the way back, and they're telling me max breaking.
WHITE: (INAUDIBLE) Thank you, niner delta whiskey.
AIR TRAFFIC CONTROL: Niner delta whiskey, when you're ready you can go to ground frequency one, two, one point niner. Nice work.
WHITE: One, two, one point nine. Thank you.
(END VIDEO CLIP)
CARROLL: Wow, everyone seems really calm throughout that entire ordeal. No word yet on the cause -- bless you -- no word yet on the cause of death to the pilot. You know, when they asked White how he got through it all, he basically said that it was focused fear. That's how he was able to maintain sort of control during that tense situation.
ROBERTS: You could hear a little bit of that creeping in to his communications there at the very, very end. A little bit of nervousness.
CARROLL: Right. Exactly.
ROBERTS: A little bit of cross yourself and say, please let me get down.
CARROLL: And imagine too it's not just you on there. You've got your wife. You've got your two daughters on there as well. I mean, that added pressure.
CHETRY: And also wondering, I mean, is there anything I can do to save -- I mean, what should I do? You know...
CARROLL: Exactly.
CHETRY: ... because you also have somebody on board, you don't know if they passed out or if they've died.
CARROLL: Yes.
CHETRY: I mean, just an unbelievable -- and also how brave for the air traffic controllers. They're trying to do their best to guide them through it.
CARROLL: Right. Yes.
CHETRY: They don't want to make a wrong move either.
CARROLL: And luck that he had air traffic controllers, one who is an experienced pilot himself and another one who he trained.
ROBERTS: That was something (ph) to him. Much help and assistance on the ground as possible in a case like that.
Great story, Jason, thanks.
Here's what else is making news this morning. Record producer Phil Spector guilty of second degree murder in the shooting death of actress Lana Clarkson at his mansion six years ago. It was Spector's second trial. His first jury deadlocked back in 2007. The judge sent Spector to jail immediately. He now faces 15 years to life in prison.
Like they need this? General Motors is recalling 1.5 million cars because of potential engine fires. So far, no injuries have been reported. The recall involves certain Chevy, Buick, Oldsmobile and Pontiac sedans. You can check out the full list of cars at CNN.com.
And saving on gasoline but sacrificing on safety. Yes, that's a smart car spinning around like a top after a front end collision. New crash tests are out on some smaller cars. We'll have that for you.
It's 10 minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: Twelve minutes past the hour. We're going to fast forward now to the stories making news later today. At 9:30 Eastern, the Council for Citizens Against Government Waste releases its 2009 congressional pig book chronicling all of the pet projects in the federal government. We have a live report for you as soon as it happens.
Also later today in Washington, Secretary of State Hillary Clinton attends a conference that's going to be focused on Haiti. She'll discuss how the U.S. and other countries can provide aid to one of the poorest countries in the Americas. Senator Hillary Clinton travels to Haiti on Thursday to meet with that country's president.
Also at 11:30 Eastern today, President Obama is giving a major speech on the economy. He's going to be talking about how the specific steps the administration is taking fit the broader vision and economic recovery. And you can watch that speech live on CNN or CNN.com. And that's what we're following for you today -- John.
ROBERTS: All right. Thanks, Kiran.
When the president talks about glimmers of hope in the economy, is there substance behind the statement or is it simply a sales pitch?
Joining us now to tackle that more, Chrystia Freeland. She is the U.S. managing editor of the "Financial Times" and Lakshman Achuthan, the managing director of the Economic Cycle Research Institute.
Let's listen to just a little bit of how the president put it the other day.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: What you're starting to see is glimmers of hope across the economy.
(END VIDEO CLIP)
ROBERTS: So, are we actually starting to see glimmers of hope, or is this, as I suggested to Suzanne Malveaux, a case of if you say it enough, maybe it will come true?
CHRYSTIA FREELAND, U.S. MANAGING EDITOR, "FINANCIAL TIMES": I think there are a few glimmers of hope. I mean, we have seen really high levels of new mortgage origination. A lot of that is refinancing but that's still money in people's pockets and we've seen some good results from some of the banks.
We've seen both Wells and Goldman doing better than people expected. So, there are some good times and also the stimulus is starting to work. I mean, that's a huge amount of money that the government is pumping into the economy. It has to have some impact. And it is.
But I think it would be far too early to declare a victory. And I don't think the president or his key advisers like Larry Summers who gave a speech last week has said happy days are here again.
ROBERTS: What do you see out there, Lakshman? Because people like Nouriel Roubini, who many people say is a perma bear, is one of the world's most noted economists, thinks that things are still going to get worse.
LAKSHMAN ACHUTHAN, MANAGING EDITOR, ECRI FORECASTS: Well, let's step back for a second. The way that the cycle works, the reason it's not an exact science, by the way, is because there's human beings involved, right? And we have all these crazy emotions.
ROBERTS: Don't you hate that.
ACHUTHAN: So preceding this crisis, we all had a huge error collectively of optimism and preceding the -- or following the crisis, right, just as the recovery is happening, we're all collectively going to have a big era of pessimism. It is the way it has worked since the beginning of time, and it will work that way this time too.
Now, having said that, separating that, right? That psychology of the business cycle which is always present, we look at -- we try to look at objective indicators, leading indicators of the economy. Some of them Chrystia mentioned, and we put them all together into leading indexes. And even leading indicators, long leading indicators that don't include the stock market which has everybody's intention at the moment bottomed the growth rate in those things, bottomed back in November.
The growth rate shorter leading indicators like the stock market seemed to have bottomed more recently. When you see that sequence, it foretells that essentially the worst may be upon us right here. So you're still going to get bad unemployment numbers and things of that nature. But forward looking, I think there are objective signs of hope.
ROBERTS: So that's a short way of saying maybe things are turned around? You wrote yesterday -- you said -- you quoted Jeff Immelt, the CEO of GE, when you said that the economy needs a "reset." What do you have in mind?
FREELAND: Well, I think all of us, from companies to households, to the American nation have to get used to a different level of consumption. The big lesson of the past decade is America and Americans were consuming more than they were producing. And that means a whole new normal. And I think that's going to be the bigger readjustment even after the economy begins to recover. People were borrowing a lot and living on debt.
ROBERTS: But what if...
FREELAND: And that's not eternally sustainable.
ROBERTS: It's maybe better for this country that we rein in our spending a little bit. But what about the major producers who rely on America? What's this going to do to the global economy? Is it going to reset that?
FREELAND: Well, it's the key question.
ROBERTS: Yes.
FREELAND: And the big question is, are China, Japan, the oil- producing countries going to play ball? But if they don't, then you're not going to have a globally sustainable economic order.
ROBERTS: Let me ask you this question, if I could, Lakshman, because we have a new CNN/Opinion Research Corporation poll out today that says 58 percent of respondents believe that the president has got the right plan to fix the economy.
Confidence is a big part of this game. So if the American people are becoming more confident in the economy, might an economic turnaround follow?
ACHUTHAN: Absolutely. In every recovery, there are some key elements that must be present. Prices have to fall, the cost of capital has to drop, demand has to build up. All of those things have roughly happened here. But none of it lights. You don't light the fire of recovery unless there's a little confidence. That's the spark that lights this fire, and we may be seeing some of that sneaking in.
However, professional money managers are very skeptical. OK, you have to climb this wall of worry. Hedge fund managers, (INAUDIBLE) fund managers, they have not bought in just yet. But mind you, we have longer term issues, consumer debt issues, consumption issues that you're just mentioning.
Those do not have to be reconciled in order for us to have a fairly vigorous cyclical recovery. I mean, I think some of these issues may take years. But we may still see a cyclical recovery where everything looks a little better much sooner than that.
ROBERTS: Right. Well, it certainly would be nice if he hit the bottom.
Lakshman, it's good to see you again. Chrystia, you as well. Thanks for coming in -- Kiran.
CHETRY: All right. Well, an investment bank back in black now planning to pay back taxpayers. The new reason to think the economy could be turning the corner. Details on that.
Also, marijuana, inc., the big business of pot. America's appetite for the drug fueling violence on the border, but is that enough to make pot smokers want to quit? Some very strong opinions on both sides.
Eighteen minutes after the hour.
(COMMERCIAL BREAK)
CHETRY: Welcome back to the Most News in the Morning. By the way, one of the best songs ever in the whole world, right? "The Boys of Summer."
Markets all around the world reacting to big bank news here at home. In Asia, Japan's Nikkei down slightly. In Europe, stocks in Germany and Britain moving higher this morning.
Well, from world markets to some really positive vibes here at home this morning after a total stunner from investment bank Goldman Sachs.
Christine Romans is "Minding Your Business" now. Dare we say it? Last week, we got to say Wells Fargo was turning a profit.
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: I know.
CHETRY: This week it's an investment bank.
ROMANS: Well, I just looked at the futures and they are kind of mixed at the moment. So you're not getting the real boom that you got from Wells Fargo last week. But another big financial company essentially surprising everyone and reporting things are better than we thought.
We've been so concerned about the fragility of the banking system. Two points here -- what turned things around for Goldman? And when do taxpayers get their money back? Take a look at the most recent five quarters. You can see how terrible it was. That red -- that red bar last fall and look, a $1.8 billion profit for Goldman.
Look, a couple of things about when you get your money back, Goldman Sachs has $10 billion of your money. And the company has been hinting for sometime that it wants to give that money back. It does not want to be under the thumb of the American government.
"The Wall Street Journal" reports that 93 people at the bank earned $1 million or more last year. So with all those pay restrictions and the like, you know, this company would like to give the money back. It's going to raising more than $5 billion from private investors so that it can turn around and try to figure out how to pay the government back and when. So a surprise profit for Goldman Sachs.
CHETRY: But you mentioned at the beginning why things turned around. I mean, you see that bright red dip for that quarter. How did they turn things around so quickly?
ROMANS: Well, you know, a couple of things here. One analyst, Peter Morici, was saying this morning to the people who follow him on e-mail that they've been borrowing an awful lot of money from the Federal Reserve. The Federal Reserve is pumping money into the banks at very, very cheap, cheap rates and then they can turn around and use it. The banks can use it in their business at higher rates, so he said it's not really a surprise with all of the help from the federal government these banks are able to turn things around.
That's, in fact, what it was all about, right? It was about the government trying to help these guys get stable. So, at least two banks now are looking more stable. And we have a stress test still to get through so I don't want to say it's quite a game changer yet. We're still waiting to see that.
CHETRY: All right. We'll take it.
ROMANS: OK.
CHETRY: Thanks, Christine.
ROBERTS: President Obama just made it a lot easier to travel to Cuba. But what's it really like on the streets of this tiny island now? Is Cuba vacation ready? We'll go there to find out.
And the multibillion dollar business of drugs. A special report -- does it make sense for America to legalize marijuana?
You're watching the Most News in the Morning.
(COMMERCIAL BREAK)
ROBERTS: Twenty-six after the hour. President Obama's change in policy allowing Cuban-Americans to visit Cuba more frequently is intended to move Cuba to a better future.
Dan Restrepo, who's the senior adviser on Latin America, says the changes will give the Cuban people a leg up.
(BEGIN VIDEO CLIP)
DAN RESTREPO, FOREIGN POLICY ADV. FOR LATIN AMERICAN AFFAIRS: This is a step to extend a hand to the Cuban people in support of their desire to determine their own future. It's very important to help open up space so the Cuban people can work on the kind of grassroots democracy that is necessary to move Cuba to a better future. The president promised us during the campaign and he is making good on that promise today to extend his hand to the Cuban people.
(END VIDEO CLIP)
ROBERTS: We're also getting an official response this morning from Fidel Castro regarding the changes. The former leader saying not a word was said about the embargo.
Castro was, of course, referring to economic sanctions that have been in place for half a century. U.S. officials say under the new travel rules there is likely to be an explosion of new charter flights to the island and direct commercial flights could potentially follow. But in reality, how prepared is Cuba for a flood of American tourists?
Our Morgan Neill is on the ground in Cuba talking to tourists. What they told him about conditions there, or, shall we say, eye opening?
MORGAN NEILL, CNN HAVANA BUREAU CHIEF: Kiran and John, this latest move from the Obama administration will certainly mean more Cuban-Americans on vacation here in Cuba. But as Congress debates even further measures, a lot of people are wondering, what if all Americans were free to visit Cuba?
(BEGIN VIDEOTAPE)
NEILL (voice-over): It's not as if there's no tourism in Cuba. Every day, buses ferry thousands of tourists between Old Havana and the beaches of Varadero, with most coming from Canada and Europe, like Allan Sangberg (ph).
ALLAN SANGBERG (ph), TOURIST: There are particular areas -- the hotels they're developing, Guardalavaca and the islands, which are very good.
NEILL: Last year was a record year with more than 2.3 million tourists visiting. And now, U.S. President Barack Obama is allowing Cuban-Americans to visit whenever they want. But what if Congress goes further and completely lifts the ban on Americans traveling to Cuba?
(on camera): Here in Old Havana's colonial plazas, the flow of tourists is essentially never ending. But some experts say if Americans are allowed to come here, the number of visitors per year could more than double. And most of the people we've talked to say Cuba is not ready for that. UNIDENTIFIED FEMALE: I will ask, of course, and then all- inclusive hotel in Varadero. And it was four-star. Horrible.
SANGBERG (ph): Cuba is not ready for mass tourism. But you still have problems of servicing, staff are not particularly friendly, not smiling.
NEILL (voice-over): John from Ontario says he's had a great time and he thinks Cuba would have no problem absorbing American tourists.
JOHN (ph), TOURIST: Its number one industry is tourism. So, yes, you know, they would adapt. Amazing people, I mean, very adaptable.
NEILL: When directly asked if Cuba had prepared for the possibility of a flood of American tourists, Cuba's vice minister of tourism was noncommittal.
"We prepare ourselves for international tourism," she said, "and, well, that's coming. We'll see."
At just 90 miles away, the United States is easily the largest and closest potential source of tourists for Cuba. And after nearly 50 years of economic embargo, most Americans have never set foot on these forbidden shores.
(END VIDEOTAPE)
NEILL: For now, that won't change. The measures announced on Monday deal only with Cuban-Americans. But there are plenty in Congress who would like to see travel to Cuba opened up for all Americans -- Kiran and John.
ROBERTS: Morgan Neill for us this morning. Morgan, thanks so much.
It's coming up on the half hour and here are this morning's top stories. Beginning now with breaking news, Somali pirates striking again, hijacking three more vessels in the Gulf of Aden off of the coast of Somalia overnight. The Greek-owned M.V. Irene is one of them. And Egypt reported two of its fishing vessels were also hijacked by pirates.
Meanwhile, the crew of the Maersk Alabama has checked into a hotel in Kenya after celebrating the rescue of their captain with a beer and barbecue fling. They're expecting to fly home soon, and new crew members have already arrived to replace them.
And North Korea says it sees no reason to discuss ending its nuclear weapons program and plans to restart a nuclear plant that makes plutonium. Some experts believe that North Korea already has enough plutonium for up to eight atomic bombs and could have their plan up and running again in about three months.
CHETRY: The United States consumes more heroin, cocaine and marijuana than any other country. That conclusion coming from the CIA. We are, simply put, a "Drug Nation." All this week, we're examining the business of drugs. Jeanne Meserve now with the special report on America's obsession with pot and the burning issue of how to handle it. Good morning, Jeanne.
JEANNE MESERVE, CNN CORRESPONDENT: Good morning, Kiran. You know, many Americans find humor in marijuana use. Think Cheech and Chong. But some experts say look at the Mexican border and you will see that marijuana is no laughing matter.
(BEGIN VIDEOTAPE)
MESERVE (voice-over): An estimated 15 million Americans use marijuana every month. It is illegal, but an integral part of American culture.
UNIDENTIFIED MALE: This is like the apex of the vortex of joint engineering.
MESERVE: Marijuana users used so casually that when the movie "Pineapple Express" introduced a facetious innovation called the cross joint, scores of people thought of nothing of posting copycat videos on YouTube. But many do not see the humor in marijuana. They say its sale is underwriting and promoting cartel violence.
JOHN WALTERS, FMR. DIRECTOR, OFFICE OF NAT'L DRUG POLICY: We're funding the same people who are beheading, killing women and children who are threatening the rule of law in Mexico.
MESERVE: The federal government estimates U.S. marijuana sales generate 61 percent of the Mexican cartels' income, $8.5 billion, more than double what they make from cocaine.
The numbers are incredible.
MESERVE: Economist Peter Reuter insists cocaine is the cartel's cash cow.
PETER REUTER, UNIVERSITY OF MARYLAND: The argument that marijuana use fuels terrorism and violence in the rest of the world is pretty strained. Most of the marijuana that's smoke in this country is probably domestically produced.
MESERVE: But some of that is grown by the Mexican drug gangs deep in U.S. national forests to avoid law enforcement. Though this chase last month resulted in the interdiction of two tons of marijuana, officials say enforcement actions like this aren't enough to stop the brutality in Mexico.
HILLARY CLINTON, SECRETARY OF STATE: Obviously our demand for drugs is what motivates these drug gangs. I mean, if they didn't think they're going to make a bunch of money across the border, they'd go to another line of work.
MESERVE: But will drawing the connection to cartel violence persuade marijuana smokers to stop? Not this one. JONATHAN, MARIJUANA USER: When I buy gas for my car, I'm supporting horrible regimes, repressive regimes around the world. I don't support those regimes, but I do want gas for my car.
(END VIDEOTAPE)
MESERVE: There is vehement disagreement over whether legalizing or decriminalizing marijuana would have an impact on the cartels and their brutal tactics. But in the meantime, statistics show marijuana use among U.S. teenagers is declining. Experts say it just isn't as fashionable as it once was. Kiran, back to you.
CHETRY: Yes, the scary part is thinking what is, right, Jeanne?
MESERVE: That's right.
CHETRY: Thanks so much.
Well also the subject of legalizing marijuana is really a hot topic with many of you. And some of you think it would deliver a real blow to the Mexican drug cartels and to dealers if it were legal. Others think it would just create more crime. Well, here's a sample of what you have to say on our CNN hot line.
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CALLER: Legalizing drugs? No way. Absolutely not. The president and everybody is trying to defeat crime, but yet legalizing hard drugs would just make more crime.
CALLER: I think you should try it by decriminalizing and legalizing marijuana first and see what happens. But yes, if it was legalized or controlled by the government and taxed, I think it would be much better than the way it is right now.
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CHETRY: All right, also ahead, two experts with tremendous insight into the business of drugs and whether legalizing them would help reduce violent crime. One of them a former special agent with the DEA and the other once advised Mexico's former president. And as always, we'd like you to weigh in, you can call our hot line. You can also get to us at twitter.com/amfix. And of course, you can always go to our Web site cnn.com/americanmorning. Big debate coming up next.
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CHETRY: Well, President Obama heads south of the border Thursday. He is trying to build strong ties with Mexican President Felipe Calderon now with an intense fight with drug gangs. It's a war that secretary of state Hillary Clinton said was driven by America's insatiable appetite for drugs.
(BEGIN VIDEO CLIP) CLINTON: Obviously our demand for drugs is what motivates these drug gangs. I mean, if they didn't think they were going to make a bunch of money across the border, they would go to another line of work.
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CHETRY: So how do we solve this problem? Our next guests have some ideas. Juan Hernandez served as an adviser to former Mexican President Vicente Fox. He also wrote a book, "The New American Pioneers." He's live for us in Fort Worth, Texas this morning. And we also have Bob Strang, a former special agent with the DEA. Thanks to both of you for being with us.
And Bob, let me start with you.
UNIDENTIFIED MALE: Good morning.
CHETRY: You heard what Secretary Clinton said that as long as there's this demand in the United States, there's going to be a black market for drugs. So how do you stop it?
BOB STRANG, CEO, INVESTIGATIVE MANAGEMENT GROUP: Well, there's three ways you stop it. With strong law enforcement which is happening, with having people walking in and getting treatment when they need it, and the third thing is strong education, with programs like DARE, POW, and after school programs.
We're probably moving in a direction now where we're able to deal with these things, probably more so than ever before. It's a three- legged stool. And if each leg doesn't stand on its own, the stool will fall. So you need immediate treatment for people who need it. You need to have strong law enforcement to dismantle the cartels that are dealing the drugs to the United States.
And you have to educate our kids across the country, mandatory drug education. When you do those three things, you can really have an impact and begin to make a difference.
CHETRY: Well, we spent billions. And as it appears right now, we haven't made as big of an impact as we need to. And Juan, I'd like to get your take on where we can work with Mexico. I mean, we talk about even the domestic production right of marijuana is handled by the cartels. So how do you begin to put a dent into their activities?
JUAN HERNANDEZ, FMR. ADVISER, FMR. MEXICAN PRES. VICENTE FOX: Well, the thing is we have to do the same thing we did with Colombia. We were able to worked with them and it's been a great success story. The president of Colombia risked his life in fighting the drug cartels in his country and the drugs being produced now there are much less. The deaths in his country are much less. We can do the same thing with Mexico.
Now, we could promise Mexico that we would give $1.4 billion over three years in many initiatives but now we've been backing off on this. And I think we need to do a lot more here on a three-legged stool that we're talking about. But we do a lot also within Mexico working with our friends in Mexico.
CHETRY: And I see you nodding there, Bob. You know, one of the things that seems to be gaining some traction is at least a popular opinion that we've been seeing on the blogs and in many calls and e- mails to our show legalize it, tax it. Speaking about marijuana. Can you two weigh in on whether or not you think it's a good idea? Bob?
STRANG: Sure. You know what, I'm willing to try anything in terms of taking a look at this openly to reduce the violence. But frankly, the government isn't going to be able to sell these drugs any cheaper than the cartels. By the time we tax them and package them, it's going to be more expensive. It sends such a bad message. And if you go to some of the worst cities, inner cities where the drug sales are, you know, beyond control in the United States, parents are asking us, how do I get my kids to school, to walk past the people selling methamphetamines, selling crack.
You know, that's not going to change. It sends the wrong message. Clearly we're on the right track. When you take a look nationally, the average age of first drug use in the United States is 12. Every expert agrees that would increase if we had a legalization issue. So I think we're on the right track. I think we have to keep working to put that money in to treatment, put that money in to education -
CHETRY: All right.
STRANG: And stay on track.
CHETRY: All right. We're going to take a quick break. When we come back, Juan, we're also going to talk to you about whether or not Mexico is doing enough and also how you stop the gun traffic and the money flowing in to Mexico. We're going to take a quick break. If we blame the Mexican drug lords for much of the drugs here, why can't Mexico do their end of the bargain, if you will, we're going to hear from our guest when we come right back.
ROBERTS: All right. Before we go to break, here's some other stories making headlines this morning.
Sarah Palin's sister-in-law pleads not guilty of breaking in the same house not once but twice. Diana Palin, the sister of the governor's husband, Todd, is accused of targeting Wasilla, Alaska home to steal money. Police say tire tracks and shoe prints tied Palin's sister-in-law to the scene.
And sexting, sending nude pictures via cell phone could soon be legal in -- I'm saying the word legal here, for teens in Vermont. Lawmakers there are considering a bill that would make it legal for teenagers 18 and under to exchange explicit photos and videos of themselves.
Under current law, teens who text message explicit photos could be prosecuted as sex offenders. You can bet this is a story that we're looking into further.
And Facebook and grades -- a study in Ohio State University suggesting a link between the social networking site and academic performance. Students who said that used Facebook reported grade point averages between 3.0 and 3.5. Those who don't use it say they average 3.5 to 4.0. Facebook users also say they studied one to five hours a week versus nonusers, 11 hours or more. Forty-three minutes after the hour.
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CHETRY: And again, welcome back to the Most News in the Morning. We're back with our guest right now, Bob Strang, former special agent with the DEA and head of the Investigative Management Group, also Juan Hernandez who served as adviser to former Mexican President Vicente Fox. Thanks to both of you for joining us once again.
And what I want to ask you about, the situation in Mexico itself. You have police chief being chased out of office, regular gun fights, 2,000 people killed in the first three months of this year. It sounds like it's completely out of control. Is Mexico doing enough? What do they need to do more of?
HERNANDEZ: Mexico is doing a great job. Felipe Calderon is risking his own skin fighting the drug lords. We need to support Mexico much, much more. The drugs are coming in diluted, the drugs are coming in expensive and they're coming in in less quantities from what I hear. So Mexico is doing a great job. We need to do much more in the United States. We have not fought against drug consumption in this country as we should have for decades. We need to get our act together.
CHETRY: All right. And I want to ask you about this, Bob. We get back to the whole issue of demand. I mean, if the cartels weren't making money, they wouldn't be doing this, right? So where do we start to go besides education as you said to reduce the demand?
STRANG: It's like we said, it's strong law enforcement here domestically, it's working with the Mexican officials to, you know, build those big cases and to work on the cartels so that the major leaders of the cartels who are making the Forbes 100 list that you know, that ultimately they get put in jail, their assets get taken away.
And their top organization gets stopped. That's what ultimately helps here. You know, it's a combination. Yes, there's demand in the U.S., but you got to remember Mexico trades around the world today, not only in the United States but through South America, through Europe, through Israel, the Middle East. Guns are coming in and out from all over the place.
We have a demand but we're not the whole problem. I think the real headway is working with President Calderon. We're lucky to have him and making the kinds of cases that DEA made a month ago. Where you're arresting 750 traffickers from Mexico throughout the United States. And at the same time, you're looking at 250 cities as part of a distribution network. That's what helps.
CHETRY: And just Juan quickly, you're shaking your head. Tell us what you're shaking your head about?
HERNANDEZ: No, no, we're putting the guns in to the hands of the drug lords. We're selling 80 percent to 90 percent of the arms to the drug lords right here from the United States. We're sending billions of dollars of cash to corrupt Mexican officials. I'm very glad that for the first time we're admitting that we're part of the problem and we can be part of the solution. Let's work with Mexico and let's fight these drug lords.
CHETRY: All right. Well we have to leave it there. But a great conversation this morning. Bob Strang as well as Juan Hernandez. Thanks to both of you.
STRANG: Thanks, Kiran.
CHETRY: We also want to know what you think. Should the United States legalize drugs? Go to cnn.com/amfix to cast your vote. Here's a look at how it's shaping up right now, 10 percent saying no way to legalization. 47 percent say, yes, legalize all drugs. Forty- three percent say only marijuana -- this is not a scientific poll but it's interesting to get a read of what people are saying.
Also on our twitter page, one of our viewers saying, I say legalize it, control it like a pharmaceutical drug and tax it. Another say, legalizing drugs only brings more problems. There will always be a black market for some things. So thanks for weighing in to that debate and we invite you to do so throughout the morning.
ROBERTS: And here's what else we're working on for you this morning. Deadly spring storms hitting the southeast, more than a quarter of a million people without power and another day of dangerous weather on the way. We've got all the details for you.
And look at this video -- a new crash test on so-called micro cars. That's the smart car there going air born and turning around like a top in a head-on crash in with a midsized car. Why saving on fuel may not be worth the tradeoff to you. We got the crash test coming up. It's 49 minutes after the hour.
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ROBERTS: It's 51 1/2 minutes after the hour. And let's fast forward the stories that will be making news later on today.
We're expecting some big economic numbers this morning including a major report on retail sales numbers. We'll have those for you just as soon as they come out. That will be at 8:30 Eastern and we'll tell you what they suggest about the economy.
The first lady heads down to the Department of Homeland Security this morning. She meets with Homeland Security Secretary Janet Napolitano and tours the different branches of the department. Mrs. Obama is also expected to give brief remarks there. That will be at 11:00 a.m. Eastern.
And all day long, we're keeping a very close eye on the flooding in North Dakota. The National Weather Service says the Cheyenne River could reach a crest of 22 feet in the coming day. That river empties into the Red River near Fargo which is also in danger of overflowing its banks again this week.
Rob Marciano is at the weather center in Atlanta. He's tracking all the extreme weather. And Rob, it looks like it's the East Coast that is in for it today?
ROB MARCIANO, AMS METEOROLOGIST: It is the storm that rolled through parts of the Midwest yesterday and the South and slowly moving off towards the east. Check out some of the damage it did across parts of Georgia yesterday. This, believe it or not, even thunderstorm damage, just straight line wind damage that kind of came behind but were pretty intense thunderstorms down across south Georgia.
This is around the Atlanta metropolitan area. A lot of rain a couple of days before and then winds gusting over 60 miles an hour taking down trees. We did have a couple of fatalities because of this. A lot of power lines down at one point, over 200,000 people were without power and a lot of the damage from trees on the houses and on the cars as well.
Some of these storms that were thunderstorms came down across parts of the panhandle of Florida. An iReport coming in from Destin. This is kind of cool. This woman shot this as there was a tornado warning across parts of Destin, Florida. That area seeing some damage as well. Here it is. The clouds whipping around. You can hear her describing what is going on. Let's listen in.
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UNIDENTIFIED FEMALE: This is the panhandle of Florida and we're having severe flooding in all the roads. Reporting for CNN iReport.
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MARCIANO: All right. IReport, I love it. Bring us your iReport, always stay safe. If you live in the central part of Florida today, we have a tornado watch out until 2:00 this afternoon. Check out some of this. These storms that are coming in from the west heading towards the Tampa, St. Pete area. They're going to create some potential damage there. Right now, no tornado warnings in effect but we'll see if that translates into a safe warning until:00 this afternoon where that tornado watch is set to expire. John, back up to you in New York.
ROBERTS: Wow. Hang on to everything that is not nailed down today, Rob. Thanks so much for that.
MARCIANO: You got it. All right. ROBERTS: So you've probably seen those cute little smart cars running around on the road. It's room for two, they run on the smell of an oily rag and I bet you said to yourself what would happened if they got into an accident. Well, take a look at this video.
The Insurance Institute for Highway Safety tested three so-called micro cars. The smart car, the Honda Fit and the Toyota Yaris, all three did fairly well in static crashes against a barrier but in a collision with another vehicle, in this case, a midsized car, the dynamic changed dramatically. That's where the laws of physics take over and those little micro cars really get tossed around resulting in potentially severe injuries to the occupants.
In one head-to-head, a smart car against a Mercedes C class. The smart car actually went airborne and spun around 450 degrees. The Insurance Institute for Highway Safety says there are safety tradeoffs with these so-called micro cars and suggested some heavier hybrid models may be a better choice for safety if fuel savings is what is driving your purchase. Kiran.
CHETRY: Well, breaking news this morning and word of more pirate attacks in the dangerous waters off Somalia. Pirates hitting even bigger boat in the dead of night. A sign ransom money could be buying better weapons. Well, the U.S. military hit before the pirates. They do it again. We're going to take a look. Fifty-five minutes past of the hour.
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CHETRY: New details about your money in a little more than 90 minutes, Wall Street kicks off the trading day. A mixed day yesterday. That's how things are shaping up overseas. Let's take a look now, Hong Kong closing up more than 4.5 percent. Japan's Nikkei closing down slightly and in London where trading is under way, the FTSE is up.
In just a few hours, President Obama will outline how we move the economy from recession to recovery and, ultimately, to prosperity. We have some brand new polls on what Americans think about the president's financial fix.
According to a CNN opinion research corporation poll, 58 percent of Americans polled believe that the president has a clear plan for solving the economic problems.
CNN's Suzanne Malveaux is live at the White House for us with a little bit more on what we can expect to hear today. Are we going to hear any new policy or is this just sort of an explainer on what's been going on so far in the move the administration has taken?
MALVEAUX: Kiran, there really is a chance for the president to check in with the American people. A White House aide tells me this morning he is not going to be announcing any kind of new initiatives, policy initiatives but he is going to be talking about here is what is working, here is what we think needs to work a bit better, where your taxpayer dollar is going and how is this economic stimulus plan actually playing out.
We got a little hint of it yesterday. We saw the president talk about some 2,000 construction projects that are under way that is under budget. That they're ahead of schedules. These are the kinds of things that he is going to talk about, saying, look, we believe that this economic stimulus package is beginning to kick in. It's beginning to work. A lot of people have tax cuts, about 120 million families or so.
But he is also going to be realistic. Aides say he is still going to talk about the fact that thousands of people don't have jobs. That this is going to be a tough road ahead. He is going to ask for patience from the American people and Kiran, the timing of this is really important, too. Because we saw the president last week back in Europe. He is also going to be - another foreign trip this week in Trinidad and Mexico.
So he is going to try to tell people, look, I am still focused on this. This is very important to you and that these foreign trips also weigh in in terms of how is this going to help create jobs? He is going to explain a little bit of that as well, Kiran.
CHETRY: All right. Suzanne Malveaux for us this morning. Thanks so much.
