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American Morning

Souter to Retire From Supreme Court After 18 Years of Service; Chrysler Plants to Remain Closed Until Fiat Merger Complete; Swine Flu Reported in 17 States; Cuban-Americans Returning to Island Home to Celebrate May Day

Aired May 01, 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 hello once again. Thanks for being with us on this AMERICAN MORNING. It's Friday, May 1st. I'm Kiran Chetry.

JOHN ROBERTS, CNN ANCHOR: Good morning to you. I'm John Roberts.

Here are the top stories on our agenda this morning, stories that we'll be breaking down for you in the next 15 minutes.

Let the speculation begin. For the first time in more than two years, there will be a vacancy on the nation's highest court. Supreme Court Justice David Souter is stepping down after the June recess. Souter has been on the bench for more than 18 years. Virginia is the latest state hit by the swine flu with health officials confirming two cases there. The CDC confirms 109 cases of the swine flu. The H1N1 virus across 17 states now. Military officials also say two Marines have contracted swine flu and are in isolation at Camp Pendleton near San Diego.

Uncertainty this morning for employees of Chrysler. The car manufacturer now going into Chapter 11 Bankruptcy. The biggest risk is for 140,000 workers in Chrysler's network of dealerships. Chrysler's plants are shut down and won't restart until after a merger with Fiat is done. The carmaker is getting another $8 billion in taxpayer money.

And we begin the hour with the breaking news from the Supreme Court. After more than 18 years on the bench, Justice David Souter will retire in June. It's President Obama's first chance to fill a seat on this court and everyone wants to know who's on the short list.

Let's bring in our Suzanne Malveaux. She's live at the White House for us this morning.

So, who is on the short list? What's the likely candidate going to look like, do you think?

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, John, certainly, there has been radio silence here at the White House. Normally you e-mail folks to get back to you pretty quickly on this, but senior administration officials they're not denying or confirming that Souter is retiring. Clearly, they don't want to get ahead of an official announcement from Souter himself. But already, you and I have been through this process, this guessing game in Washington. A lot of buzz. These are some of the folks that people are talking about.

Sonia Sotomayor, she is a judge from the U.S. Court of Appeals for the Second Circuit. She would be the first Hispanic on the court. Obviously, President Obama, a chance to make history in this appointment.

Diane Wood, a judge for the U.S. Court of Appeals for the Seventh Circuit, very well respected.

Jennifer Granholm, someone that we've seen at the president's side during the campaign obviously over the auto crisis as well, the governor of Michigan, a former Michigan attorney general.

Elena Kagan, solicitor general-designate, dean of Harvard Law School, his alma mater.

Deval Patrick, also a close friend of the president, the governor of Massachusetts.

And Georgia Chief Justice Leah Ward Sears. She would also make history as well being the first black woman to serve on the Supreme Court.

Obviously, John, this is a chance for this president perhaps to make his mark, not ideological necessary. Souter being liberal, likely going to replace him with someone else who is liberal but really could change the makeup and the tone, and what we see -- the face of the court.

ROBERTS: You know, we were talking with Alan Dershowitz from Harvard Law on the telephone this morning. And he said, because David Souter is a white male, really the landscape is wide open. The president can appoint pretty much anybody he wants.

MALVEAUX: Absolutely. I mean, it really is quite extraordinary that it's coming so early in his term. A lot of people looking at this very much excited about it. Again, it's not likely to change the ideological, really the thinking, the format of the court, but very much could change what this court looks like.

It's going to take some time. We know that Souter has to make an official announcement before the White House follows up with that. And, of course, the Senate Judiciary process which will take weeks to come. But we do expect that we'll know, obviously, before October when the next session starts.

ROBERTS: I'm certain the White House though is already starting to get its ducks in a row.

MALVEAUX: Oh, yes.

ROBERTS: Yes. Suzanne Malveaux for us this morning. Suzanne, thanks so much. They call David Souter the "stealth candidate" for the high court. He never liked to give interviews or speeches or even have his picture taken for that matter. So who exactly is Justice Souter. More now for you in an "AM Extra."

He was nominated by the first President Bush in 1990. He quickly became a disappointment to many conservative Republicans. Some of his key decisions included a decisive fifth vote in the 1992 case of Planned Parenthood versus Casey. That was the Supreme Court case that upheld Roe versus Wade, keeping abortion legal in this country.

In 2003, he voted in favor of using race as a factor in college admissions, upholding affirmative action. And in 2005, Souter wrote a landmark high-tech ruling that made software companies liable for their file sharing services, even though his own court-issued PC famously gathered dust in his chambers.

CHETRY: We have the latest now on the swine flu epidemic. The state of Virginia now added to the list of states with the H1N1 virus. The CDC now confirming 109 cases here in the U.S. in 17 different states. That outbreak is forcing more school closings this morning.

Students in more than 300 schools will be staying home for now. Officials have placed thermal cameras as well at Mexico City's international airport. They're checking for passengers with a fever. Also reports this morning that doctors are checking those on foot crossing into the U.S. from Mexico.

We're covering the story from all angles for you this morning. We have Barbara Starr at the Pentagon telling us why the National Guard is getting involved in some states.

First, though, we bring in our Dr. Sanjay Gupta just back from Mexico City, live this morning at the Centers for Disease Control and Prevention in Atlanta.

Sanjay, first, a new scientific discovery they say may be good news about the ability of this virus to replicate. What have we learned on that front?

DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: Yes, this is really interesting. You know, one of the names of the game here is to try and look at the overall structure of the virus. They're isolated. Now they're looking at it and they can compare it to years past as well.

So with this particular virus, it appears to be lacking a specific amino acid, a specific type of protein that is essential in the virus's ability to replicate itself. And that's really important, Kiran, for two reasons. Once it gets into the body, what the virus does is tend to replicate itself and that's what makes you sick, number one. And number two, that's what also influences the ability to transmit itself from human to human.

So we do know it's transmissible from human to human, but it doesn't appear to be as transmissible as we feared, frankly. So this is some good news here.

It kind of makes sense, I'll tell you as well, Kiran. You know, just back from Mexico City, a city of about 20 million people, and there are about 2,000 or so at least documented infections, that's one-tenth of one percent. And that sort of fits with this low transmissibility, Kiran.

CHETRY: It's interesting. I mean, as you say, you're just back from Mexico City. You were actually at the hospital where they were treating many swine flu patients. You didn't get it?

GUPTA: Well, I don't think that I got it. You know, I haven't -- you know, it's one of these things unless you're showing symptoms, they don't really recommend that you get tested because there's a very high false-negative rate.

But I feel fine, you know, except for lack of sleep that we all have from stories like this. And my crew -- we all feel fine. So I think we're good. We were very cautious while we're down there as well, Kiran.

CHETRY: Right. You're taking the best precautions that you can. But what are they recommending that you take? Tamiflu preventively just as a precaution? And how long until they let you be around your kids because you have a little baby, not even 2 months old.

GUPTA: That's right. Well, with regard to my youngest child who's 5 weeks old now, I have decided to self-isolate. So I have not been home despite the fact I'm here in my hometown. I just -- they said that the best bet for me probably is to not be around someone that young.

And we are taking Tamiflu as a prophylaxis simply because we came in contact so closely with not only patients at the hospital but also, as you know, we went to the area where this virus likely originated and spent time with the first patient and all the members of his community as well. So we're just being cautious here and taking the advice of the folks right here behind me.

CHETRY: All right. Fascinating stuff they hope to learn more about it today. Sanjay, thanks so much.

Sanjay is going to be on Twitter, by the way, all morning all.

GUPTA: Thank you.

CHETRY: Taking your questions about swine flu. You can join the conversation, Twitter.com/AMFix. You can also e-mail us, CNN.com/AMFix. And head to our show hotline if you like to weigh in on the telephone, 877-MY-AMFIX.

ROBERTS: States coast-to-coast are getting shipments of the anti-viral drugs Relenza and Tamiflu and many of those states are bringing in the National Guard to make sure that no one tries to steal them. Our Barbara Starr is tracking that story for us from the Pentagon. Barbara, these drugs typically not even on anybody's radar screen and now they're like gold.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, that's right, John. We were really surprised when we started asking around and found out that five states now, at least five, are using their National Guard troops, at least a very small number of them, to guard Tamiflu supplies that have been shipped to them by the CDC.

Take a quick look at the map and we'll give you the rundown of the states involved -- Ohio, Illinois, New Jersey, Kansas and Kentucky -- all reporting that their governors are using some National Guard troops to secure these Tamiflu supplies.

Everybody says stay calm, but what's very interesting is they won't even tell us where these so-called secure warehouses, secure facilities are. The exact locations where these guard troops that you see here are working in these warehouses to guard the supplies.

So it's probably a case really of planning for the worst, hoping for the best. Everybody says stay calm but still taking this very seriously because most officials say, still, this has not reached the full potential of what could happen, the number of cases that could emerge in the coming days -- John.

ROBERTS: Another surprising aspect of the story. Barbara Starr at the Pentagon this morning. Barbara, thanks so much.

STARR: Sure.

CHETRY: Getting new details this morning coming from the hero captain who testified before the Senate Foreign Relations Committee about being held hostage by pirates, Alabama Captain Richard Phillips. Maersk Alabama Captain Richard Phillips said that he thinks that the ship's senior crew members should be armed.

Then, his boss Maersk Chairman John Clancey testified and said they should not. He said guns could expose sailors to an escalation in violence and exposed the company to liability.

Well, now you can get inside of Sarah Palin's head. The government of Alaska joining the micro-blogging service Twitter under the code name akgovsarahpalin. So far she's complained about being misquoted by the "Associated Press." She's following other Twitters like Bill O'Reilly and Breaking News CNN, as well as NBC's David Gregory.

And more now on our developing story. Supreme Court Justice David Souter retiring after more than 18 years on the bench. Who could fill his seat? We're going to tell you who's on the short list next.

Ten minutes after the hour.

(COMMERCIAL BREAK)

CHETRY: Twelve minutes after the hour. Time to fast forward through the stories that will be making news later today.

At 11:00 a.m. Eastern, President Obama is going to be holding his second full cabinet meeting. Later he attends a ceremonial swearing in of two members, Commerce Secretary Gary Locke, as well as Health and Human Services Secretary Kathleen Sebelius.

At 10:00 a.m. Eastern, we're going to be getting consumer confidence numbers. Stocks have been up this week ahead of this monthly report. We're going to have those numbers for you as soon as they're released and, of course, we'll be watching the markets today to see the reaction.

Today also marks the deadline for "The Boston Globe." Its union must agree to $20 million in concessions or face possible shutdown. We're going to be monitoring those talks as they continue throughout the day.

And that's what we're following this morning - John.

ROBERTS: More this morning on our breaking news. As if the president didn't have enough on his plate for his second 100 days, he now has to pick a replacement for retiring Supreme Court Justice David Souter. So who can slip into his seat in America's highest court?

Joining me now on the telephone from Pompeii, Italy is professor of law Alan Dershowitz from Harvard Law School.

Professor, it's good to talk to you. It's interesting to note that David Souter was appointed by a Republican, Bush 41, back in 1990. Yet, he waited until a Democratic president took power to announce his retirement.

ALAN DERSHOWITZ, PROFESSOR OF LAW, HARVARD LAW SCHOOL (via telephone): There's no question that he became a real disappointment for the Republicans. He was a stealth candidate who emerged as a kind of centrist inclined to a liberal. In fact, it's the Souter appointment which became a verb. They will never "Souter" anybody again. They will make sure that everybody is so carefully vetted so that they get true blue conservatives.

He was regarded as a warning sign and as a mistake by the Bush administration. And he emerged as a very, very good justice.

ROBERTS: Right. So what type of person do you think that President Obama will pick to fill this post? I mean, he can't affect the balance of the court with this pick, so do you think he'll go for diversity?

DERSHOWITZ: He has the option here. Because this is a white male who's leaving the court, he's not locked in. He doesn't have to fill a slot -- an African-American slot, a woman slot. The most qualified candidate may well be a woman or a person of African- American or Asian background, but he has a complete open availability because probably the next retirement will be Justice Ginsburg, and he will have to have a woman on the court. I think he's going to be looking to somebody relatively young, somebody who can take on people like Scalia and Alito and Roberts. So he could have an impact actually on the balance of the court, not in terms of numbers but in terms of the quality of opinions and the enduring nature of his appointment down the court.

ROBERTS: So how deep, Professor, is the Democratic bench from which to pick a replacement?

DERSHOWITZ: Oh, it's very, very deep. There are some who think that it shouldn't be yet another judge. There are now nine judges on the court -- circuit court judges. Perhaps somebody from politics, somebody who used to be governor or a senator or somebody who has real political experience or practical litigation experience.

And then there are, of course, the judges and the academics, and the usual people from whom past presidents have picked. So he has an enormous opportunity to affect the life of the nation well beyond his own term by this appointment.

ROBERTS: Right, right. Let's take a look just for a second here at some of the names that are being floated. Now this isn't any kind of an official list. This is just for political and legal watchers that they put together.

Sonia Sotomayor, who's from the Second Circuit Court of Appeals.

DERSHOWITZ: Yes.

ROBERTS: She's one of the judges who might be up for this appointment. Also, Diane Wood of the Seventh Circuit Court of Appeals. Somebody who may, Professor, fill this idea of a seasoned politician, Jennifer Granholm from Michigan.

DERSHOWITZ: Yes. Yes.

ROBERTS: She's the governor there.

DERSHOWITZ: Yes.

ROBERTS: She's also the former attorney general.

DERSHOWITZ: Right.

ROBERTS: Elena Kagan, who is the solicitor general designate as well. I mean, if you were to look at that list, who do you pick you would pick?

DERSHOWITZ: Well, I have a little bias. Two of them are my former students. The governor of Michigan and former dean of the Harvard Law School, Elena Kagan, were my former students. I've argued in front of Judge Sotomayor, who is a superb judge. They're all excellent, excellent picks.

There are also men who would be excellent picks. There is the former Dean of Yale Law School. ROBERTS: Harold Koh. Yes.

DERSHOWITZ: Koh -- Harold Koh, who would be the first Asian- American on the courts. Any one of them would be an absolutely superb pick.

I think the goal is to make sure there are no litmus tests. You shouldn't look at the past, what are people's views on abortion? Who knows what the big issues are going to be 20 years from now. And whoever is picked is going to serve in the next generation. So he has to be looking for somebody who will make an impact, somebody in the mold of a Brandeis (ph) or Holmes, or Brennan, somebody who really will leave a legacy, not only by their votes, but by the quality of their opinions. And everybody you mentioned on the list fills that bill.

ROBERTS: Right.

DERSHOWITZ: And there are many not on the list who would fill that bill as well.

ROBERTS: Alan Dershowitz coming to us this morning all the way from Pompeii, Italy. Professor, it's awfully good to catch up with you. And we thank you for taking your time out from I'm sure what must be a vacation.

DERSHOWITZ: It is.

ROBERTS: All right.

DERSHOWITZ: Thank you so much.

ROBERTS: Take care. Thanks again.

CHETRY: Well, Chrysler going to Chapter 11 Bankruptcy protection merging with Italy's Fiat. What does it mean for its workers, for its customers, and also for the city of Detroit? We're going to answer those questions.

Also, lawless pirates seizing ships and millions of dollars at sea. Is the president doing enough to stop them? In today's "Memo to the President," we're asking what's really being done to end the Somali pirate's reign of terror.

It's 18 minutes past the hour.

(COMMERCIAL BREAK)

CHETRY: Well, what was once considered unthinkable is the reality this morning. Chrysler became the first of Detroit's big three autos to file for bankruptcy. President Obama said that the filing is not a failure for the company but a step on its past revival.

Christine Romans is "Minding Your Business" and she joins us now with more on this situation. CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: OK. The first order of business for the new Chrysler folks will be a filing. They're going to file with the judge so that they can keep paying people. And that's something that Bob Nardelli who's still running this company said they're going to do right away. So they're asking permission from the court so that people can still get paid.

Although they've idled these plants as you've heard, the people who are coming to work this morning, worked for Chrysler have already been through a roller coaster, are being told that they're going to be out of work for about 30 to 60 days while this bankruptcy process continues. They'll still be paid through a combination of unemployment benefits and then when the court can finally approve the pay there.

So how long will this take? Thirty to 60 days. This deal with Fiat is now part of the deal. They will get $8 billion more from taxpayers on the other side of the bankruptcy filing. And the Chrysler CEO, Bob Nardelli, will usher through this process of bankruptcy but then he is gone.

Who will be the owners of this new company, the new Chrysler as the administration is calling it? UAW retirees, 55 percent of it. Fiat, 20 percent. That Fiat stake could go all the way up to 35 percent though.

The U.S. government, eight percent. The Canadian government, two percent. The Canadian is kicking in money here to loans on the other side. A bankruptcy because, of course, it has manufacturing facilities there.

What does it mean for your car? You can still go to your dealer and get service. You can still -- your warranty is still good. You can still buy a car. They're going to try to put in dealer financing through GMAC. That's part of this whole procedure as well.

If you work at this company, you will still have your health benefits right now. You will still be paid. Just waiting to see what it looks like on the other side. So just nuts and bolts for what happens now this first day of a bankrupt Chrysler.

CHETRY: Do they show the manufacture Chrysler autos as well?

ROMANS: Eventually, but the whole point of this is that Fiat is going to be the big, you know, ally here. And there are going to be new kinds of cars. In 18 months or two years, they're hoping to have smaller, more fuel efficient cars. It's hoping to use Fiat technology in the Chrysler brand, you know, to reenergize the Chrysler brand. And, you know, we'll have to see what it looks like when it's all said and done. But it will be another 18 months before any new kind of Fiat car comes out of this.

ROBERTS: Christine, thanks so much for that.

ROMANS: Sure. ROBERTS: What's on the president's to-do list now? He's already facing a vacancy on the Supreme Court. This morning we're looking at his other top priorities for the next 100 days.

And the hero captain who was rescued from pirates says senior crew members should be armed to deal with marauding pirates. His boss disagrees. So what's the answer?

In today's "Memo to the President," we asked how is the pirate crackdown coming along?

It's now just turning 24 minutes after the hour.

(COMMERCIAL BREAK)

ROBERTS: Welcome back to the Most News in the Morning.

The captain of the ship rescued from pirates lived through hell at sea. He's back home now. But the pirates are still out there pulling out brazen attacks.

Is the president doing enough to stop the thieves and end their reign of terror? Our Barbara Starr joins us now from the Pentagon with today's "Memo to the President."

Good morning, Barbara.

STARR: Good morning, John.

Well, you know, everybody has an idea about what to do about pirates but so far, no real solutions.

(BEGIN VIDEOTAPE)

STARR (voice-over): Mr. President, there were smiles all around when Captain Richard Phillips returned home after being rescued from pirates holding him hostage off of the coast of Somalia.

It was a crisis long in the making. Ship owners have paid millions in ransom as dozens of cargo ships have been attacked by pirates off of Somalia, now the world's most dangerous waters. Pirates are using mother ships, captured vessels they sail hundreds of miles out to sea using them to launch small boat to attack cargo ships. They often have radios to talk to other pirates.

That's how they got the U.S.-flagged Maersk Alabama, which became a high-profile fight between the U.S. Navy and four Somali pirates. U.S. military power won, but the key question -- what now?

The day after Captain Phillips was rescued, your top naval commander in the region was cautious about the idea of attacking Somali targets ashore.

VICE ADM. WILLIAM GORTNEY, COMMANDER U.S. FIFTH FLEET: You need good intelligence preparation. And you also need to be very concerned of the collateral damage concerns. STARR: Testifying before Congress, Captain Phillips asked for government protection.

CAPTAIN RICHARD PHILLIPS, MAERSK ALABAMA, FORMER PIRATE HOSTAGE: The most desirable and appropriate solution to piracy is for the United States government to provide protection through military escorts and/or military detachments aboard U.S. vessels.

STARR: But the Navy says it can't fully patrol waters four times the size of Texas. And some say private armed guards aboard ships aren't feasible either given the thousands of cargo ships that pass here every year.

MARK KIMMITT, FORMER U.S. ASSISTANT SECRETARY OF STATE: If you're talking about equipping and arming 10,000 ships, that runs into the millions of dollars, far more than $30 million, probably ten or a hundred times that. There's also the issue of the liability incurred to the crews if the crews are harmed in that process.

(END VIDEOTAPE)

STARR: What does the military really say? Well, John, most military commanders will tell you the real solution lies ashore in Somalia. Not with military action, but with economic aid and development to try and make Somalia, a very troubled country, a place where pirates cannot prosper -- John.

ROBERTS: So here's a question I have falling out of that. If pilots can carry weapons in the cockpit, why can't the captain and the first or maybe second mate of the ship be armed?

STARR: Well, you know, Captain Phillips actually did talk about that at the hearing yesterday. He said, look, it's not ideal. But if you were going to arm cargo ship crews, at least give arms to the top four or so seamen onboard these cargo ships and let them have a means of defending themselves.

Right now, the feeling is that it would just lead to escalation of violence. But a lot of crews that man these cargo ships and a lot of ship owners are beginning to look at the idea very seriously.

ROBERTS: All right. Barbara Starr for us this morning from the Pentagon. Barbara, thanks so much for that. Good to see you this morning - Kiran.

CHETRY: We're following breaking news out of Washington this morning. President Obama getting his first chance to shape the highest court in the land. Supreme Court Justice David Souter will step down after the current session ends in June, leaving the president to name his replacement. Souter has been on the bench for more than 18 years.

And more schools now telling students to stay home as the swine flu outbreak grows. Classes in more than 300 schools coast-to-coast have been cancelled. Some reports put that number much higher. Right now, the CDC is confirming 109 cases of the H1N1 virus in 17 states. And you could get an unwanted surprise from the IRS next April. The tax credits President Obama plans to put into your paycheck this year could actually pull hundreds from your refund next year. The new tax tables do not take into account couples who both work, people with more than one job or retirees who have taxes withheld from pension payments.

Well, some of President Obama's critics say that his first 100 days agenda was too ambitious. My next guest said it's nothing compared to how busy his next 100 days will be. Jonathan Martin is the senior political reporter for the Politico and he joins us this morning from Washington, D.C.

Thanks so much for being with us.

JONATHAN MARTIN, SENIOR POLITICAL REPORTER, POLITICO: Good morning.

CHETRY: In an article, you listed some of the key decisions that the president is going to have to make by day 200. So let's go through some of them. First of all, the financial crisis, those so- called stress tests that are taking place with the banks, with the big banks, especially those that took bailout money. What happens if those results are poor?

MARTIN: Well, he was actually, you know, got to effectively decide which banks are going to live and which banks are going to fail. That's the enormous amount of power in the hands of the president, especially, Kiran, when you couple that with the fact that he's effectively deciding the fate of major car companies.

But I should note here that I actually wrote this piece two days ago before we even knew about Justice Souter. So little did I know that he was going to have one more very big choice to make here in his hands in the days ahead.

CHETRY: Yes and let's get to that first because...

MARTIN: Yes.

CHETRY: Because based on your top 10 list...

MARTIN: Right.

CHETRY: What type of process goes in to making this selection? How much time does it take away from the actual president's day?

MARTIN: Well, I think he will have staffers dedicated to this. When President Bush picked his two Supreme Court justices and in recent years, he had staffers specially brought into the White House to sort of focus on this issue. I think President Obama will likely do something similar.

So it's not a daily time-consuming issue for the president himself. He is presented with information. He studies the information. Ultimately makes that choice himself. That's not like day in, day out. As far as legacy shaping, as far as the imprint that this will leave, few more consequential choices the president can make.

CHETRY: All right. Let's get back to the ramifications of...

MARTIN: Sure.

CHETRY: ... of the bank situation.

MARTIN: Right.

CHETRY: If he does not remove any CEO, will there be accusations that maybe he is treating Wall Street differently than the auto industry?

MARTIN: That's a political tightrope that he's got to walk very, very definitely. The fact that there's this buzz out there. I was at a town hall meeting with the president in Missouri early this week. A retired auto worker, a GM worker said, you know, what is it with these corporate types always seeming to get away OK but us, the workers, us the retirees are always the ones taking it in the chin. I think he's got to be very cognizant of that.

Why are you, you know, rescuing corporate CEOs, yet these unions, the UAW, for example, has to take massive concessions to save a Chrysler, to save a GM.

CHETRY: All right. And you know, as part of the restructuring plan as we know, Chrysler filing for bankruptcy protection.

MARTIN: Right.

CHETRY: And then he has to decide General Motors' fate in the next move, all at the same time. As you said, they're asking for major concessions from the union. It's a sticky situation and one that he even said in his press conference, I don't want to be involved in this. I want the, you know, autos to be humming. I want his industry to be working out.

But he does have another big decision to make when it comes to what's next for the other two standing.

MARTIN: He sure does. And you did hear at the press conference saying I don't want to run banks. I don't want to run car companies. But that is the hand that he's been dealt. So dealing with the car companies is going to be a very, very sensitive issue.

Look, it's not a stretch to say that whether or not he wins the state of Michigan in 2012, for his re-election, something I can assure you is not far from the minds of many folks in the Obama White House is riding on this decision. That obviously is a key state. He has to keep that in mind. That's to say nothing of the fallout from all the suppliers, all of the manufacturers who were involved, not making cars directly, but do play...

CHETRY: Right, right. MARTIN: ... something of a role throughout the Rust Belt.

CHETRY: And Jonathan, this is only one man, you know, sometimes he needs a break. Another one of those decisions maybe not the most pressing for the country. But for the Obamas, where do they go on vacation?

MARTIN: Well, exactly right and don't forget there are political issues there as well. Of course, President Clinton famously polled where he should go on vacation, I think it was in '95. Wound up in Jackson Hole, Wyoming instead of the more sort of elite, Martha's Vineyard.

So these things are very, very important. We haven't gotten to health care, energy. So there's a lot on his plate and a lot you'll see here in Washington.

CHETRY: All right and it could be, right it could be Martha's Vineyard in the end, right?

MARTIN: There's talk that he's gotten a place. The White House wouldn't confirm that saying as of late last week, he had not finalized where to vacation. But there has been a report that he's going to vacation this August on Martha's Vineyard.

I can tell you for the folks covering him, Martha's Vineyard, Hawaii, Chicago during the summer, we'll take it.

CHETRY: Yes, exactly.

All right. Have fun, Jonathan. Thanks for being with us this morning.

ROBERTS: Regular folks go to the Vineyard too.

CHETRY: Yes.

ROBERTS: Chrysler shutting down for weeks as it goes to Chapter 11 bankruptcy. Can the struggling automaker really emerge better and stronger? What it all means for the future of the company, it's employees and the city of Detroit, just ahead.

And can you pass on the swine flu virus without even being sick? We're paging our Dr. Gupta this morning. He is Twittering for us today. Live from the Centers for Disease Control in Atlanta.

It's 36 minutes now after the hour.

(COMMERCIAL BREAK)

ROBERTS: Welcome back to the Most News in the Morning. A live picture from Detroit right now. It's cloudy and 59 degrees, rain on the way there today.

Chrysler employees in the Motor City and across the country on edge this morning as the car maker goes into Chapter 11 bankruptcy protection. Plants were shut down until a merger with Italy's Fiat is complete. President Obama is calling the bankruptcy, "one more step on the path to Chrysler's revival."

Let's bring in Neal Boudette. He is the Detroit bureau chief of "The Wall Street Journal." He's in Detroit for us this morning.

The president said that this Chapter 11 bankruptcy could give Chrysler a new lease on life. And Neil, certainly There are plenty of companies that have gone through Chapter 11 to emerge stronger and more nimble.

How do you think Chrysler is going to do going through this process?

NEAL BOUDETTE, DETROIT BUREAU CHIEF, "THE WALL STREET JOURNAL": Well, I think the bankruptcy process at least gives Chrysler a chance. If they weren't in this step, if they had not been able to have the threat of bankruptcy to line up the deal with the United Autoworkers, to push through this alliance with Fiat, they could be headed - they could have been headed for liquidation.

So this is a relatively a pretty good place. And they do have a chance to come back. They'll go through the process, and they'll get out. They got their costs in line now. And we'll see if they can go forward and survive.

ROBERTS: So this process could take anywhere from 30 to 60 days, maybe even a little bit longer. What could throw it off of the rails during that time?

BOUDETTE: Well, you know, you're taking your chances going into court because anything could happen. And certainly this issue with the banks. Now, they're dealing with the bank's secured debt. In other words, Chrysler put up plants as collateral to borrow this money.

And secured lenders have very strong legal grounds in bankruptcy. And so, you know, they could press this or any decisions that go on, they could potentially appeal and push into a real legal battle.

ROBERTS: And thousands of people's livelihoods are at stake. Employees of Chrysler, people who work at dealerships, people who run dealerships. What do you think the impact is going to be on those folks?

BOUDETTE: Well, the dealers are going to take a very heavy toll here. It's going to be very difficult because Chrysler's finance partner, Chrysler Financial is a separate company now, is basically shutting down operations.

So dealers can't borrow money to buy cars to put on their lots anymore. Or at least for the time being and they can't get auto loans through Chrysler Financial for customers. So there are a lot of dealers that are going to end up going out of business, I'm sure of that, in the months ahead.

ROBERTS: Such a shame.

You know, all of this hinges on this new partnership with Fiat. The last partnership Chrysler was involved with Daimler Motors, didn't work out so well. How do you this Fiat marriage is going to be? Will it work out better?

BOUDETTE: Well, as I said, it at least gives Chrysler a chance to survive. But, you know, I think there are risks here too. Fiat mainly makes small and midsized cars. And those don't generate a lot of profit. So even if these cars sell well, Chrysler is not going to be making a lot of money off of these. They would have to sell a whole lot.

And right now consumers don't really turn to Chrysler for small cars. They think of Honda, Toyota, even GM and Ford first before they think of Chrysler.

ROBERTS: We'll see what can come out of the box with a new attitude and maybe sell some cars.

Neal Boudette from "The Wall Street Journal" in Detroit this morning. Neal, it's good to talk to you. Thanks for coming in today.

BOUDETTE: Pleasure.

ROBERTS: Kiran.

CHETRY: There's a lot of rumors and bad information out there about how swine flu is spread. And we're going to give you a reality check. Should we be really concerned about riding on the subway or being in crowded places. How about flying or should you cancel your cruise?

Dr. Sanjay Gupta is on Twitter live from the Centers for Disease Control in Atlanta. He's taking your questions.

It's 42 minutes after the hour.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

JON STEWART, HOST, "THE DAILY SHOW WITH JON STEWART": Finally going to -- Dr. Sanjay Gupta has gone to Mexico and tracked down patient zero.

GUPTA: There he is, Edgar Hernandez.

STEWART: Oh! And may be the most adorable spreader of mass death since the Lidnickipuss (ph) outbreak of '96.

(END VIDEO CLIP)

CHETRY: All right. That was Jon Stewart from the "Daily Show." And of course, that was our own Sanjay Gupta there. This morning, we're "Paging Dr. Gupta." He's at the Centers of Disease Control and Prevention in Atlanta. And he's on Twitter taking your questions.

I mean, the little boy was cute, of course. They're laughing and he's recovered, thanks goodness. But boy, what a scary situation for a lot of people there.

And you know, a lot of people are wonder because of the misinformation that's out there, some myths out there. So we want to ask you, one of our viewers "do I really have to be concerned about riding the subway or flying?"

GUPTA: There's been a lot of information going on about that. And for the most part, riding the subway or flying is fine. You know, obviously the sick people around you, you want to try to avoid those people. Sick people should not be flying or getting on the subway. But if they do, you avoid those people.

There's been a lot of discussion about masks versus hand washing and all that. I can tell you that simply washing your hands over and over again is important. I almost feel silly saying that again. But simply putting your hand on something and touching your eyes, nose or mouth is probably the way that people are getting this virus. So be careful with your hands, pay attention, wash as much as you can especially in subways and planes.

CHETRY: And you know, you don't think about it because it's allergy season. So you're wiping your eyes or rubbing your eyes because you have an itch. Or you're rubbing your nose, you just don't think about how many times you put your hands to your face, which you shouldn't, myself included.

Can you be a carrier of this virus, some people are wondering, not know it, and then pass it on to others but never get sick yourself?

GUPTA: Well, the answer to that question is, yes, but very unlikely.

And here's the reason, typically you're not going to pass this virus on unless you have active symptoms, coughing, you're sneezing, and your eyes are watery. You don't really shed the virus. That's what they call it in the medical world. But you can possibility. So it's possible but very unlikely.

CHETRY: I also want to know about the incubation time. Once you've had swine -- first the incubation time, do you know how long from exposure to you actually getting it? And the reason this is interesting is because they're testing people - they're taking people's temperatures at the border. If you have a fever, you could be exposed and right not actually have a fever yet.

GUPTA: That's right. It could take some time. What's happened in that process is the virus has entered your system but there's not enough of it to cause any kind of illness. The virus is starting to replicate within your body. And eventually when it gets to a critical mass, that's when you get symptoms.

So what I'm hearing from the time of exposure to time of symptoms, around three days, and time of contagiousness, about seven days total. So those are rough numbers because this is a relatively new virus. So, you know, they're going to get more exact numbers as they know of one more cases.

Three days from exposure to symptoms, about seven days total for contagiousness.

CHETRY: Right. So that does no good if you're trying to stop people at the border and they've been exposed just recently. Also, if you've had it once, are you immune to it?

GUPTA: Yes, that's a great question. The answer is you are going to develop some immunity to it. You know just going through life like we do, you develop immunity to all sorts of different things. The flu shot, that we get ever, it gives you some immunity. If you get the flu, that's going to give you some immunity.

But you know as well, Kiran, these viruses change. They mutate a little bit. Their genetic structure changes and then you won't necessarily have immunity to a new virus that it may mutate to. So you may have some immunity to the swine flu if you get it.

CHETRY: All right. A lot of great answers this morning, Sanjay. As always, thanks so much and to learn more about how the virus spread and what you can do to protect you and your family, check out cnnhealth.com.

ROBERTS: The anti-viral medication Tamiflu now being shipped to several states as the swine flu outbreak spreads this morning. Ahead, while some of those states are calling in the National Guard to protect those shipments.

And May day celebrations under way in Cuba. Why this year's festivities have taken on a new twist.

It's 49 minutes now after the hour.

(COMMERCIAL BREAK)

ROBERTS: Coming up to 52 minutes after the hour. Let's fast forward to stories that will be making news later on today.

Today is May 1st, it's May Day and every year thousands of pro- immigration rallies and marches are planned around the country. This year, however, swine flu fears are causing worry among some organizers, causing some to consider canceling those rallies.

At 1:00 p.m. Eastern and the judge in the case for former Illinois Governor Rod Blagojevich considers a request to release funds from the friends of Blagojevich campaign to help pay for legal cost. Last week that same judge denied the former governor's request to appear on a reality television show in Costa Rica. And President Obama said he wanted a playoff system for college football instead of the current computer ranking system. And today, Congress holds a hearing on just that. At 10:00 a.m. Eastern, they examine the financial and future impact of the current system on colleges and universities and whether or not it should be changed.

Rob Marciano is tracking the extreme weather for us across the country today.

But what do you think of the idea? Computer ranking system or a playoff system, what would you like to see?

ROB MARCIANO, AMS METEOROLOGIST: I think a combination of both. As long as you get to the top eight teams to go at it for the last couple of weeks, I guess it's a nice compromise, John, but in the end it's all about the almighty dollar.

ROBERTS: Absolutely.

(WEATHER REPORT)

ROBERTS: Thank goodness it's Friday, Rob. Appreciate it. Kiran, help!

CHETRY: Doesn't that make you happy, though? He's so cute!

ROBERTS: It does.

CHETRY: Everybody likes a little scratch every now and then.

ROBERTS: It's a nice Friday piece of video we got there.

CHETRY: I want one!

All right. President Obama faces another new challenge this morning. He is going to need to select a new Supreme Court justice this summer. And ahead the names being mentioned as possible replacement for the retiring David Souter.

And something we haven't seen before. Americans crowding airports to catch a flight to Cuba. We're going to have a live report from Cuba. Our very own Jim Acosta is there. It's 55 minutes past the hour.

(COMMERCIAL BREAK)

ROBERTS: It's the biggest day on the communist calendar and May day celebrations are underway in Cuba this morning. The 50th anniversary of that country's revolution. But this year, it could be the dawn of a new day in relations between Cuba and the United States.

CNN's Jim Acosta is live for us in Havana right now.

Good morning, Jim. JIM ACOSTA, CNN CORRESPONDENT: Good morning, John. That's right. We are in vivo in Cuba. That is correct. And this is one of the most important holidays on the Cuban calendar. They have been celebrating May day ever since Fidel Castro rose to power 50 years ago.

And one thing you won't see very much of on the island is Americans traveling here that is because for almost half a century, Americans have not been able to really travel freely in Cuba but as we've been reporting here on AMERICAN MORNING, some of that cold war chill is starting to thaw and we've seen some of that ice chip away with our own eyes on this journey to Cuba.

(BEGIN VIDEOTAPE)

ACOSTA (voice-over): Meet the only Americans who can now legally visit Cuba just about whenever they want. They are Cuban-Americans taking advantage of a new Obama administration policy that allows them to visit relatives in the communist country with almost no restriction.

MERCEDES TORRES, CUBAN-AMERICAN TRAVELER: I have to say thank you to the president, to the United States, because we can go to Cuba to visit our family whatever time that we want.

ACOSTA: Mercedes Torres and other passengers are waiting to hop a U.S. authorized one-hour chartered flight from Miami to Cuba. She's taking bundles of food, clothing, and even toys back to her brother and sister on the island.

(on camera): You bring toys.

TORRES: Yes. They don't know Christmas. They don't Santa Claus, and we bring Santa to them.

ACOSTA: Here we go.

Charter flights are so popular among Cuban-Americans the planes are often full, and we're flying on a 767. One of the charter officials told us this is a light day.

UNIDENTIFIED FEMALE: Ladies and gentlemen, welcome to the city of Havana

ACOSTA (voice-over): Most Cuban-Americans, this new-found freedom to see their homeland is part of a White House strategy to get a diplomatic conversation going. First Cuban to Cuban-American, then maybe nation-to-nation.

Cuba has been off limits to most Americans ever since the U.S. embargo on the island that began in the years following Fidel Castro's rise to power. It's a policy that has aged along with the Cuban icon, who has been hospitalized in poor health. But with Fidel's younger and more pragmatic brother Raul now in charge...

RAUL CASTRO, PRESIDENT OF CUBA (through translator): We will discuss everything, everything, everything.

ACOSTA: And with a new president in the White House, a growing number of Cubans and Cuban-Americans are hopeful more change is coming.

For now, they'll settle for Christmas in May.

(END VIDEOTAPE)

ACOSTA: And this is going to be a big celebration out here today.

We can tell you that, last year, there were 500,000 Cubans matching through the streets behind me. In the old days, Fidel Castro would lead that march. Obviously, he can't do that today

We're not sure Raul Castro will be here today, but we did hear from the current Cuban president just a couple of days ago. He was out in event here in Cuba. And he repeated that comment that he made a few weeks ago, John, when he said we are ready to discuss everything. He said it again a couple of days ago, but he added the disclaimer that he wants the U.S. to make some more gestures before they respond in kind, but, John, they are talking.

ROBERTS: Yes. And that, in and of itself, is pretty significant.

Jim, this is going to be an interesting exercise for you. I know your dad, A.J., fairly well. He emigrated from Cuba. He has fond memories of growing up there.

ACOSTA: That's right.

ROBERTS: And this is your first time in Cuba. What's it like? What's your first reaction?

ACOSTA: Well, it's incredible, as you might expect, John. I've never been to Cuba. I've only heard my dad talk about it. We went to go see the Cuban baseball team play against the Baltimore Orioles 10 years ago. You know, I've got the Buena Vista Social Club on CD. I'm big into Cuban music.

My dad always flew the Cuban flag around the house. He's always been proud of his country even though he left when he was just 12 years old. And so, it's amazing to come back here and take in the sights and sounds of what is a very romantic and exotic island.

And talking to people around here, you do get the sense that they feel that something is happening in the United States, when President Obama was elected and inaugurated. It was almost sort of a game changer here on the island. They've always been shaking their fist at the United States all these years. And for a moment, the Cubans took a step back and said now, wait a minute, something is different in the United States. Maybe we ought to be paying attention to this - John.

ROBERTS: Yes, the way he used to be. And he's also very proud of you. He mentions you all the time, Jim. And I'm sure he's proud to see you down there carrying the CNN flag for us this week. Thanks so much for that.

Jim, by the way...

ACOSTA: I told him we were here.

ROBERTS: Yes. Jim, by the way, blogging for us during his visit to Cuba. Just head to cnn.com/AmFIX to ask him a question.