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American Morning
U.S. Military Raises Alert; U.S.-Canada Border New Rules; Odd Couple Join Forces; Teach for America Program Overloaded with Job- Hungry Grads; Obama's Mideast Plan
Aired May 28, 2009 - 08:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ROB MARCIANO, CNN ANCHOR: And good morning, it's May 28th. Coming up at the top of the hour. Here everybody is out sick or on vacation, I'm Rob Marciano in for John Roberts, alongside Alina Cho.
ALINA CHO, CNN ANCHOR: John Roberts on vacation. Kiran is feeling a little under the weather. So, Kiran, if you're watching, feel better and stay in bed. We are just crossing the top of the hour. And here is what is on this morning.
The stories that we're going to be breaking down for you in the next 15 minutes.
U.S. and South Korean troops are at their highest alert level in three years as tensions with North Korea mount. Plus, reports of brand-new activity at the North's nuclear complex at Yongbyon.
We're just days away from a long-awaited passport requirement for travel to and from Canada. The restrictions are tighter. So what will the new rules mean for you? Our Jeanne Meserve will break them down for you.
And President Obama upbeat on the economy, saying we're no longer on the verge of economic disaster. And seems Americans are more confident about the future.
(BEGIN VIDEO CLIP)
BARACK OBAMA, PRESIDENT OF THE UNITED STATES: We've got a lot of work left to do. And so, although, when you look at the economy right now, I think it's safe to say that we have stepped back from the brink, that there is some calm that didn't exist before.
(END VIDEO CLIP)
CHO: The president says the economic stimulus bill is beginning to pay dividends. About a half hour from now, at 8:30 Eastern, we're going to get the weekly jobless report, and our Christine Romans will break down the numbers.
We are also following developing news overseas. U.S. and South Korea militaries are on heightened alert this morning as North Korea is ratcheting up fears around the world. The changing of the alert level follows a direct threat by the North against South Korean and U.S. warships. And all of this is playing out as Secretary of State Hillary Clinton warns the communist regime will face consequences for its actions.
(BEGIN VIDEO CLIP)
HILLARY CLINTON, U.S. SECRETARY OF STATE: It has ignored the international community. It has abrogated the obligations it entered into through the six-party talks. And it continues to act in a provocative and belligerent manner towards its neighbors. There are consequences to such actions.
(END VIDEO CLIP)
CHO: Strong words. We'll have to see what that means in terms of action. Joining me now is CNN's chief international correspondent Christiane Amanpour.
Christiane, you and I were in North Korea last year, together, early part of the year, then you went back. You got unprecedented access as they blew up that cooling tower at Yongbyon.
So, first to the news, South Korean and U.S. troops on heightened alert. There are 25,000 U.S. troops in South Korea.
What does this all mean?
CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT: Well, yesterday, North Korea, Pyongyang said that they would consider the 1953 armistice null and void. That is because they say South Korea violated it by deciding to join the U.S.-led proliferation initiative out there.
The proliferation security initiative, which essentially means a U.S.-led sort of Naval blockade to try to prevent any selling or proliferation of nuclear materials. So that is what is causing some of the tensions right now. But the real question is what is the international community going to do about it? And, in fact, what can they do about it?
Clearly, many analysts calling for patient diplomacy. Obviously, there's a lot of work going on in the United Nations Security Council. But there is no military solution to this or military option, according to all the analysts.
CHO: Well, and I mean, if we're looking at more economic sanctions, you know, that really only hurts the people who are already suffering, not the people at the top, right?
AMANPOUR: So what we're hearing is they are trying to figure out some kind of sanctions that go to the heart of the regime, to the heart of the companies to deal with...
CHO: But how do you do that?
AMANPOUR: Because there are companies who deal with financial matters, who deal with the selling of missile and other military technology. And that is what they are looking at at the moment.
CHO: Got it.
You know, there was an op-ed piece in "The Wall Street Journal" yesterday -- I'm sure you read it -- that said, really that Russia and China are key to any negotiations with North Korea.
Of course, they abandoned six-party talks. So has there been any indication that Russia and China is willing to get involved. And do they really have any influence over a country that seems to act on its own?
AMANPOUR: Well, it's all a question of relative influence. Obviously, China is perceived to have the most influence because it has the most trade, the most back and forth with North Korea, aid and all of the rest of it. Russia also a neighbor. But, clearly, it is about China, China, China, Russia, Russia.
Because if the security council is to come up with some kind of coordinated sanctions or some kind of punitive measure, they need Russia and China on board. And that's going to be the key there.
CHO: Now, I mentioned at the top that you were granted unprecedented access. You were there on-site when they blew up that cooling tower at Yongbyon. Now there are some unconfirmed reports that there was smoke billowing from Yongbyon, and there might be some activity there. But is this rhetoric or what's going on?
I mean, can we really...
AMANPOUR: Well, look, you know, some people keep wanting to talk about rhetoric and saber rattling. The fact is that North Korea detonated some kind of nuclear device on Monday. That is a big step forward. So how to deal with it?
Is Yongbyon going to be started again? Some are saying -- it is not clear yet that there has been, perhaps indication that generators there are starting, it's not completely confirmed yet despite what South Korea has been saying. But many are saying, including many former U.S. officials who have traveled to North Korea, who've had talks with officials there, that the real -- the real goal must be to bring North Korea back into the six-party talks, to be able to have U.S.-North Korea dialogue.
It will take time. It can't happen right now as a reward for this kind of belligerent activity. But right now, their rhetoric, talking about the 1953 armistice no longer being valid is very bellicose, is very broad, much broader than we've seen from them in the past. But people are saying that they have to be brought back into the diplomatic fold in order to be able to finally actually disarm, which we witnessed last year -- the shutting down of Yongbyon, the disabling of it and the blowing up of the cooling tower. They have to be able to get back to that point.
CHO: Well, it's clear that North Korea acts with a purpose always. It's just figuring out the reason behind that. And once we do, I think we can move forward.
AMANPOUR: Well, some say to get attention, but others say it's key to what's going on inside right now, which is the succession struggle.
CHO: Exactly.
AMANPOUR: Plus, the idea that some of the things that they agreed to last year, they didn't get the aid and the fuel and all of the rest of it that was promised. So there's a lot of unfinished business on all sides.
CHO: Chief international correspondent Christiane Amanpour.
Always great to talk to you. Thanks, Christiane.
MARCIANO: Also new this morning, U.S. military officials say coalition troops killed 29 insurgents during a battle in eastern Afghanistan. These are brand new pictures coming in to CNN.
The troops were targeting a suspected foreign fighter camp near the border with Pakistan. Officials say at least six of the insurgents detonated suicide vests during the attack. One coalition member was wounded in that assault.
The Taliban and Pakistan is claiming responsibility for a suicide attack in Lahore, Pakistan's second largest city. At least 27 people were killed and 250 others wounded, when a van packed with explosives destroyed a building, housing police and intelligence agencies. A Taliban spokesman says it was revenge for the government's military offensive against insurgents in the Swat Valley.
President Obama's national security adviser slamming former Vice President Dick Cheney for saying America is less safe under the new administration. Yesterday, a retired Marine General James Jones said the U.S. is not only safe, but will become increasingly secure. He pointed to increases in defense spending, efforts to wind down the war in Iraq, while building up the war in Afghanistan and repairing America's image overseas.
And a developing story this morning. Homeland Security Chief Janet Napolitano just formalized a new border initiative with much tougher rules about getting in and out of Canada. The goal is to make our borders safer. But Jeanne Meserve is in Washington now to tell us what else the tougher rules may mean.
Good morning, Jeanne.
JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: Hi.
These have been phased in now for about a year and a half, but about 8,000 kinds of birth certificates and government IDs can be use to enter the U.S. from Canada. It's been really hard for border officials to sort out what's legitimate and what isn't, creating a security nightmare. So, starting Monday, the rules are going to change. (BEGIN VIDEOTAPE)
MESERVE (voice-over): At certain times, at certain places, it can take hours to cross the border from Canada into the U.S. Some fear new rules will make the wait even longer.
UNIDENTIFIED MALE: Starting June 1, 2009, new document requirements...
MESERVE: Ad campaigns in the U.S. and Canada are spreading the word that, starting June 1st, travelers crossing into the U.S. on the northern border will need to present one of the following: a U.S. or Canadian passport, a U.S. passport card, a trusted traveler card, or an enhanced driver's license like those offered by a limited number of states and provinces.
U.S. officials estimate that only about one in three Americans has one of those documents. Although people living near the border are much more likely to have one. Officials are promising to be flexible about enforcement in the beginning.
JANET NAPOLITANO, U.S. SECRETARY OF HOMELAND SECURITY: We hope that people appreciate however that as we implement, we're going to do it with common sense, we want to be fair, but that is the law and my responsibility is ultimately to make sure that that law is enforced.
MESERVE: Every day, about 300,000 people cross the U.S.-Canadian border, and every minute a million dollars worth of trade goes back and forth. Business and travel groups worry the new rules will create bottlenecks.
PERRIN BEATTY, CANADIAN CHAMBER OF COMMERCE: The last time a shot was fired in anger between Canada and the United States was in the war of 1812 to '14, and yet we are putting barriers between our two countries which keep on getting higher and thicker, and we're moving in the wrong direction.
MESERVE: But U.S. officials predict things will go smoothly. Some of the documents are enhanced with radio frequency identification tags that can be read before a vehicle gets to an inspection booth and may actually speed travel.
(END VIDEOTAPE)
MESERVE: So you asked what happens if you get to the border without one of the required documents? Well, you will get more scrutiny and that will take time. But in the end, if you are a U.S. citizen, you cannot be denied entry.
Rob, back to you.
MARCIANO: Jeanne Meserve, live in D.C.
Thanks, Jeanne.
MESERVE: You bet. CHO: They opposed each other in Bush versus Gore back in 2000. Now lawyers for George W. Bush and Al Gore are teaming up and suing the state of California. Why? We have details ahead.
Plus, talented college grads apply by the tens of thousands to teach some of the neediest school kids in the country. So why were nearly 90 percent of them turned down?
Ten minutes after the hour.
(COMMERCIAL BREAK)
CHO: Thirteen minutes after the hour.
You're looking live there at Los Angeles. What a beautiful shot. They say it's cloudy and 60. I don't know. P.M., sun and 75. That's Jason Carroll's hometown.
MARCIANO: You bet.
CHO: Welcome back to the Most News in the Morning. Thirteen minutes after the hour.
They have been dubbed the legal odd couple. Two powerhouse lawyers who faced off in the fight for the 2000 presidential election, one representing George W. Bush, the other Al Gore, well, now, those two legal eagles are teaming up.
Jason Carroll now here with the details of this unlikely alliance. So they're partnering up. Who called who?
JASON CARROLL, CNN NATIONAL CORRESPONDENT: Yes, yes. This is a strange one, definitely. You and I were talking about this yesterday. You know, this is an alliance that has left some people on the left and the right scratching their heads. They are two men who used to fight each other. Now brought together by the Constitution and the battle over same-sex marriage.
(BEGIN VIDEOTAPE)
CARROLL (voice-over): They're the odd couple in the debate on same-sex marriage. Renown attorneys Ted Olson and David Boies.
DAVID BOIES, ATTORNEY: Ted and I, as everybody knows, have been on different sides in court and political issues.
TED OLSON, ATTORNEY: I cannot think of a way to succeed with this case that's better capable of doing that than to have David Boies on the team.
CARROLL: Huh? The same team. The last time these two shared the spotlight, they were on opposing teams, during the hotly contested recount in the 2000 presidential election.
BOIES: Being up here on the platform with Ted Olson and all these lights makes me want to urge everybody to count every vote. CARROLL: Boies argued on behalf of Vice President Al Gore.
BOIES: The Bush lawyers and the Bush team have made a variety of attacks on the courts.
CARROLL: Olson represented then presidential candidate George W. Bush.
OLSON: We have a presidential election which has been thrown into chaos.
CARROLL: One might expect Boies who has represented the likes of liberal heavyweights such as filmmaker Michael Moore to argue in support of gay marriage. But why would a conservative, former solicitor general from the Bush administration take up the cause and ask a former foe to join him.
OLSON: This case is about the equal rights guaranteed to every American under the United States Constitution.
CARROLL: Olson and Boies filed a lawsuit on behalf of two California same-sex couples. Their argument, the state of California giving same-sex couples domestic partnership, instead of full marriage violates equal protection and due process clauses of the 14th amendment.
BOIES: The Constitution guarantees that everyone deserves the equal rights that every human being is entitled to.
CARROLL: Whether their case gets to the Supreme Court is still in question. But legal analysts say the unlikely legal duo make a formidable pair.
JONATHAN TURLEY, PROF. GEORGE WASHINGTON UNIVERSITY LAW: If two people know how best to frame a case to the Supreme Court, it would be these two lawyers who have been there all too often.
CARROLL: So Olson and Boies are holding press conferences, joint appearances on CNN's "LARRY KING" and "AC360," both saying together they will not fail.
OLSON: We are convinced that we will prevail in the federal courts all the way up to and including the United States Supreme Court.
(END VIDEOTAPE)
CARROLL: Although there are some legal analysts that say it is not uncommon for the Supreme Court to leave these types of divisive issues to the states or a lower court to resolve. Even so, Olson and Boies are determined to be heard and determined to win.
And, you know, in some ways, this does present somewhat of an issue for the president because some on the left are now saying, look, we've got this ultra conservative guy on our side. President Obama, you know, spoke about -- you know, speaking out for gay rights. Where is he on this issue? That's what some on the left are now saying.
CHO: It's unbelievable just to see them side-by-side, you know, after they were rivals for so long.
CARROLL: Yes.
CHO: But, you know, they say equality is equality is equality under the law. We will have to see what happens.
Jason Carroll, thanks.
CARROLL: All right.
CHO: Rob.
MARCIANO: Alina, a program placing the best and brightest with needy school kids is overloaded with applications. Why "Teach for America" had to tell over 30,000 young adults, thanks, but no thanks.
It's 16 minutes after the hour.
(COMMERCIAL BREAK)
MARCIANO: And there they go, round and round, a familiar shot outside Columbus Circle there -- the Time Warner Studios. Fifty-eight degrees, a couple of showers possible later on today as we slightly warm up here in New York City.
Welcome back to the Most News in the Morning.
You know, every year tens of thousands of college grads apply to the "Teach for America" Program. Only the best of the best are accepted, and go to work in some of the country's poorest public schools. But on the face of the worst job market in decades, this year, tens of thousands had to be actually turned away.
Our Deb Feyerick has today's report on "Life after Graduation" series.
This one, they are practically volunteering and being told, no thanks.
DEBORAH FEYERICK, CNN CORRESPONDENT: Well, they are. And as a matter of fact, they are from some of the top schools. And so there's a little element of surprise there that maybe somebody from Harvard would not get a job to volunteer in an inner city school.
But really, you know, these are kids who are eager to teach in poor communities, where kids are the major economic, and education is a disadvantage. And that is the big question -- why aren't they being hired?
(BEGIN VIDEOTAPE) MOLLY GREER, TEACHER, TEACH FOR AMERICA: What are different paces that you can go at when you're reading something loud?
Christina?
FEYERICK (voice-over): On the first day of school, most of the kids in Molly Greer's eighth grade class could not read at a sixth grade level. With summer almost here, it's a totally different story for these kids who are now back on track.
GREER: It is an incredible thing for these students.
FEYERICK: Greer graduated with honors from the University of Wisconsin. She arrived in the Bronx two years ago with a degree in political science and a desire to change the world.
GREER: When I found out about "Teach for America", I realized that, you know, teaching would be such an incredible way to make an impact.
FEYERICK: "Teach for America" is like a local peace corps serving some of the country's poorest inner city schools. It's more popular than ever. 35,000 college seniors applied in 2009. A 42 percent jump from last year. Why? Two reasons says the nonprofit.
KEVIN HUFFMAN, TEACH FOR AMERICA: We just had less competition from Wall Street firms and banks. It just led a lot of students to really think about what they wanted to do and how they could have an impact.
FEYERICK: This year, "Teach for America" placed its largest group ever. 4,000 college grads in places like Boston, Dallas and the Mississippi delta. Even so, schools in Appalachian and elsewhere desperately need help.
HUFFMAN: Districts across the country are facing the same economic pinch that many businesses are facing, and they're just fewer positions available across the country for teachers.
FEYERICK: Which is why the Teachers Union says those positions should go to career teachers, not inexperienced recruits may only stay the required two years.
JOHN WILSON, NATIONAL EDUCATION ASSOCIATION: It's very hard to justify laying off teachers who have, you know, given service to a school system and then turn around and bring in new teachers.
FEYERICK: "Teach for America" says two-thirds of its recruits stay in academics like Molly Greer, who now plans teaching as a career.
GREER: When the kid makes reading growth and they have like the biggest smile on their face, and that feeling that, you know, I contributed to giving that student is like the best compliment.
(END VIDEOTAPE) FEYERICK: Now "Teach for America" received so many requests for teachers that they can hardly keep up with the demand. They are expanding but not everyone also is qualified. And, of course, there's the money issue. Recruits are paid a salary from private donors and federal grants, and so that's a little bit limited - Rob and Alina.
MARCIANO: Well, these grads -- I mean, are they prepared to handle tough classes like this?
FEYERICK: You know, that's a really interesting question because they really go in raw. Many of them have never been in a class. They go to a five-week boot camp and pursue a teaching certificate, in some cases a master's degree and other, but the first year is really trial and error. Still, they are the ones who are willing to fill this void when other teachers would not. Now that there are fewer jobs, obviously, well, the...
(CROSSTALK)
CHO: They want to protect their own, so to speak, right?
FEYERICK: Exactly.
CHO: Deb Feyerick, thank you.
MARCIANO: Thanks, Deb.
Well, all week long, we've been looking at ways new grads are trying to overcome a dismal job market. Join us tomorrow. We will be talking to a "Life after Graduation" panel.
Do you have a question? Well, you want to ask these career coaches or college counselors about the best tactic to land a job? Call our show hotline at 1-877-MY-AMFIX.
CHO: Just days after meeting with Israeli Prime Minister Benjamin Netanyahu, President Obama is heading back to Washington to sit down with Palestinian President Mahmoud Abbas. So what's next for Mideast peace? That discussion is still ahead.
Twenty-four minutes after the hour.
(COMMERCIAL BREAK)
CHO: We have some breaking news just in to CNN out of Pakistan.
Right now, reports of two blasts at a market at Peshawar in Pakistan. You are looking at brand new pictures just coming into CNN. A smoky scene there. Lots of emergency personnel. There are a number of people reportedly injured. Casualties are feared.
Now, this is the second attack in the area in as many days. You may recall, yesterday, a van packed with explosives reduced a building to rubble in Lahore. That's Pakistan's second largest city. Twenty- seven people at least were killed, more than 250 others injured. And this morning, we learn that the Taliban claimed responsibility for that attack.
We are watching this latest development very, very closely out of Pakistan. We'll have more as more information comes in - Rob.
MARCIANO: Twenty-six minutes after the hour, Alina.
Now a check on our top stories. There has been at least one death after a powerful 7.1 earthquake rattled the Caribbean nation of Honduras. And official says a man died when his house collapsed about 120 miles north of the capital. The U.S. geological survey also says a 4.8 after-shock hit the island this morning.
And 21 students and three teachers from Maryland are under quarantine in China. They've been ordered to stay in their hotel by government officials. They are worried that the group was exposed to swine flu on their flight over to China. Reports say the man on the flight with flu-like symptoms actually tested negative for the H1N1 virus. CNN has asked Beijing for comment. So far there has been no response.
A proposal to legal medical marijuana for seriously ill patient squeaked through the Illinois state Senate and is now headed for the state House. If approved, the bill would allow patients with diseases like cancer, AIDS and multiple sclerosis to grow and use marijuana to treat chronic pain and nausea when other treatments have failed them. Critics argue allowing medical marijuana will make it harder for police to enforce drug laws.
And a Florida man, arrested with his wife on steroid possession charges, claims to have sold steroids to professional hockey and baseball players in Washington, D.C. But the National Hockey League and the Washington Capitals are saying they doubt that allegation. MLB.com reports Major League Baseball will look into the allegation involving the Washington Nationals.
Well, the president is back in Washington today, after a West Coast tour. He is sitting down with Palestinian President Mahmoud Abbas, trying to move forward with his Mideast peace plan. Earlier this month, Israeli Prime Minister Benjamin Netanyahu refused to endorse a two-state solution during his visit to Washington.
So is this the president's plan? Is it now dead in the water? Joining me now former Middle East negotiator and author of the book, "The Much Too Promised Land," Aaron David Miller.
Good morning, sir. If you could, let me tap your expertise and explain to me and our viewers -- give us the Palestinian and Israel cliff notes here. Maybe a 101 version of where the U.S. stands in their policy with that part of Middle East.
AARON DAVID MILLER, AUTHOR, "THE MUCH TOO PROMISED LAND": I think the reality is the Obama administration has decided to make this a top priority. I wasn't sure at first, but there's no question about it now.
Governing is about choosing. It's about trying to decide what's important and what isn't. And the Obama administration has taken some important steps at pointing George Mitchell, changing their tone, early visits to Washington, the president's speech in Cairo. There's no question they're going to seriously test the possibility that within the first or maybe second term, the administration can reach an agreement between help the Israelis and Palestinians reach an agreement.
MARCIANO: Now, arguably, Israeli Prime Minister Benjamin Netanyahu not exactly -- doesn't have the power he once had, and Palestinian authority President Mahmoud Abbas may be a similar situation. What does the president hope to accomplish with this meeting this week?
MILLER: Well, he's going to sit down with a very pleasing, but largely powerless Palestinian president. Really representing the kind of Palestinian Humpy Dumpty. Abbas, who represents Fattah, has the incentive to make peace with the Israelis but not the power.
Hamas, on the other hand, has plenty of power, but they lack the incentive. And this conundrum, this real problem is the one that the Obama administration is going to confront.
In today's meeting, there will be really three people in the room. There will be the president, there will be the Palestinian president and there's also going to be Benjamin Netanyahu. He won't be there in body, but he'll be there in spirit. Because almost everything turns now, I suspect, on whether the administration can induce the Israelis to do things.
And there's a sort of cruel asymmetry here. Very little will be expected from Mahmoud Abbas, because he's not capable of giving much. Much will be expected of the Israelis and you really are going to end up, I suspect, with a test of wills, sooner rather than later.
MARCIANO: Well, if Mahmoud Abbas doesn't have a whole lot of power and maybe not the best negotiator at this point, other than Israel, any other countries over there that may be able to come to the table and help out?
MILLER: Well, the administration, I think, is trying to triangulate. They realize getting Israelis to do anything unilaterally and certainly getting Mahmoud Abbas to do anything unilaterally is going to be very, very difficult. So they've tried to or they are trying to get the Arab states to offer a sort of down payment on the 2002 initiative. Partial normalization with the Israelis in order to induce the Israelis perhaps to do a settlements freeze and also to strengthen the Palestinians.
Look, this process is going to be like a thousand days of root canals. It's going to be excruciatingly painful. The chances of success are very low, but the administration has clearly made this a priority and it's going to be fascinating to watch it unfold in the next several months.
MARCIANO: Well, the president is expected to go to Cairo here pretty soon. And do you think he is going to actually unveil a peace plan there? And if so, what do you think is the basis of that plan would be?
MILLER: It's not going to be a plan, a detailed plan. I think what he is going to do is talk about the importance of a two-state solution and then lay out, in a kind of intellectual fashion, but very clearly, as he has done on other issues, what the essence of a two- state solution would be and point to how the contentious issues like Jerusalem, like refugees, like borders, like security, and normalization between Israel and the Arab states, what the shapes of those issues are going to be. A kind of tutorial.
Presidents persuade and they educate. And on this one, this is going to be a powerful educational speech on the part of the president.
MARCIANO: Aaron David Miller, we can tell by your words and just the look on your face how difficult a journey this has been and will likely continue to be. Thank you for giving your insight this morning.
MILLER: It's a pleasure, Rob.
CHO: Latest job numbers are just in to CNN. How the tidal wave of layoffs peaked and more people be going back to work? Christine Romans is going to break down the numbers.
Thirty-three minutes after the hour.
(COMMERCIAL BREAK)
CHO: Thirty-six minutes after the hour.
We have this just in to CNN. New report on jobless claims came out just minutes ago. Christine Romans "Minding your Business."
So, bad, but not as bad as we thought?
CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: It's not a disaster, but still it shows a lot of people are lining up for jobless benefits every week.
Six hundred and twenty-three thousand people lined up last week for the very first time for unemployment benefits. The record number here is continuing claims. We tell you this every week. There have never been this many people in this country ever continuing to get a jobless check; 6.788 million people are getting a jobless check here.
Now, there's another number I want to tell you about. All of this is now being exacerbated by auto layoffs, that's why these numbers remain at these high levels. Down a little bit for the weekly number, but still, these are uncomfortable levels and they tell you the labor market is in distress.
Durable goods number - durable goods number are things that you buy that last three years or longer, an appliance, a car, an aircraft engine, things like this. Durable goods, you know, which I just bought one last week. You know, a big Boeing airplane. Durable goods rose 1.9 percent in April. That was a bit of a surprise. That shows you what we've been talking about consumer confidence numbers. The people who have put off purchases of big ticket items wait in for some reasons, waited in rather for some reason in April.
Now, the third story that I want to tell you about, Visteon, this is number 282 I think in the Fortune 500. It has filed for bankruptcy protection this morning for Chapter 11 bankruptcy protection this morning. Thirty-one thousand employees of this company...
CHO: Related to the car industry.
ROMANS: It makes power train controls, interiors, control panels, the things that you touch, feel and see in your car, auto parts company.
CHO: This is the sign of things to come.
ROMANS: Yes.
CHO: Think about GM employing 140,000 workers, but tens and tens of thousands more work in related industries.
ROMANS: Absolutely, right. And you're seeing the distress because of Chrysler and GM and because of just a very weak, weak auto market and economy that is now affected some other companies as well. So this is another bankruptcy, Visteon is in bankruptcy.
MARCIANO: So three pieces of news in that number. One is people are still losing their jobs.
ROMANS: Yes.
MARCIANO: But there has been, they're buying really expensive stuff and companies are still going bankrupt?
ROMANS: That's absolutely right.
CHO: That's what you call a mixed bag.
MARCIANO: A confusing day to be an economist.
CHO: And you got a Romans' numeral?
ROMANS: I do. I have the "Romans' Numeral." The "Romans' Numeral" is 21. This the number that is driving the news story of that day. And 21, this has to do with the labor market.
Believe it or not, in the most recent economic statistics on unemployment, 21 states actually have the unemployment rate fall in the most recent month. Missouri, Nebraska among them. But look...
CHO: The heartland.
ROMANS: There's a lot of things happening in the economy. Some there are winners, there are losers, but 21 states actually had their unemployment rate fall a little bit. So that is something... MARCIANO: OK.
CHO: Less than half...
ROMANS: So we'll focus on the 21.
CHO: A silver lining?
ROMANS: Precisely.
CHO: Christine Romans, thanks.
MARCIANO: Thanks, Christine.
Well, even in tough times, some people thrive. It's about becoming innovative. That's just what Taylor, the tailor did. Ted Rowlands has the latest in our series "Money & Main Street."
(BEGIN VIDEOTAPE)
TED ROWLANDS, CNN CORRESPONDENT (voice-over): With swatches of fabric...
UNIDENTIFIED MALE: It's gorgeous.
ROWLANDS: ... and measuring tape, Ryan Taylor sells clothes before he makes them.
UNIDENTIFIED MALE: Thank you, sir.
RYAN TAYLOR, OWNER, DROBE: So we eliminate the money that it costs to have your clothes tailored and we eliminate the time it costs to go shopping.
ROWLANDS: And the cost of inventory. When a sale is made, half the money is collected up front.
UNIDENTIFIED MALE: I like that.
ROWLANDS: Which helps pay for the cost of materials. Taylor says his custom-made clothes are about the same price you would find in a department store.
TAYLOR: Our business model is remarkably fit, lean. We have no inventory. Our inventory, quite honestly, is simply fabric.
Let's do it.
ROWLANDS: When he started his company, Drobe - which is the word wardrobe, without the "war" - Taylor was selling clothes the old fashion way, making them first. This is a photo of his booth at a Las Vegas trade show in 2001. He didn't sell a thing.
TAYLOR: When I came home from that show, thousands of dollars in the hole, I said, how can I create a better story?
ROWLANDS: So he created the new business model. One of his first clients was the late comedian Bernie Mac.
TAYLOR: I called up the "Bernie Mac Show" and the stylist there; come on in, let me see what you have. And he was my first celebrity client.
ROWLANDS: Taylor now sells to several celebrities, including musician Johnny Gill, who recently bought some clothes at his home in Beverly Hills. Other celebrity clients include Martin Lawrence, Jay Leno and Al Pacino.
But Taylor says most of his business comes from average Joes who hear about Drobe through referrals. Taylor says his love for making and selling clothes never changed but changing the way he does business has allowed him to thrive in a tough economy.
Ted Rowlands, CNN, Los Angeles.
(END VIDEOTAPE)
MARCIANO: Exactly that, how do you thrive in a tough economy? People are doing it. For more on our series "Money & Main Street," watch CNN tonight at 8:00.
CHO: There's a court hearing for rapper Chris Brown in Los Angeles today. A judge will have to decide whether he should stand trial for allegedly assaulting his former girlfriend Rihanna. Ahead, why the attorneys for the rapper are expected to complain about the way police handled the case.
Forty-one minutes after the hour.
(COMMERCIAL BREAK)
MARCIANO: Welcome back to the Most News in the Morning.
New video now. Check this out video just coming in to CNN. Shows the aftermath of a powerful 7.1 earthquake in the Caribbean nation of Honduras. There has been at least one death there and official says a man died when his house collapsed. You can see it there. Obviously some road damage. His house collapsed 120 miles north of the capital. The U.S. Geological Survey also says 4.8 aftershock hit the island this morning - Alina.
CHO: Thanks, Rob.
Forty-four minutes after the hour. We're going to fast forward now to stories that will be making news later today.
Lawyers for R&B star Chris Brown have a court appearance at 6:00 p.m. Eastern time in Los Angeles today. It's a preliminary hearing to determine whether the rapper should stand trial for allegedly assaulting former girlfriend Rihanna. His attorneys may argue that misconduct by police for allegedly leaking photos of Rihanna after she was assaulted.
Former President George Bush scheduled to deliver a speech tonight to the Economic Club in southwestern Michigan. He is going to be talking about his eight years in office, his transition to life after the White House and his outlook for the nation moving forward. We are also told that he's going to take some questions but no cameras permitted inside.
The Sons of Italy Foundation will honor Vice President Joe Biden tonight. He is going to become the first non-Italian recipient of the group's national education and leadership award.
And the best young spellers in America were off tonight at 8:00 p.m. in the finals of the National Spelling Bee. Everyone stay home. The final contestants are going to compete this morning in the semis. You're going to get to hear from the winner tomorrow morning right here on CNN's AMERICAN MORNING.
Reynolds Wolf in the Weather Center watching everything for us.
(WEATHER REPORT)
MARCIANO: Hold on there, Alina. Can you spell Ferrari?
CHO: F-E-R-R-A-R-I.
MARCIANO: You are correct! You'll advance to the conference championships there.
Speaking of Ferrari, check this one. It's the highest price ever paid for one, for a car in general. A sporty little number. It's a 1957 Ferrari 250 Testarossa. You would look good in that one.
CHO: I sure would.
MARCIANO: It's told that in Italy...
CHO: What year?
MARCIANO: 1957. It looks good, though. $12.4 million.
CHO: Wow.
MARCIANO: There are the numbers that Reynolds was talking about. Anyone is good with those. This car - it won 10 races between 1958 and 1961. It features a red cylinder head covers, of course, on its V-12 engine. That's not exactly environmentally friendly. Auctioneers would not disclose the identity of the winning bidder.
All right. Speaking of Ferraris, you probably cringed watching "Ferris Bueller's Day off" when the vintage Ferrari crashed through the garage window. Well, now you can sell the or buy the house. The glass and steel Chicago home is selling for $2.3 million, a bargain compared to the actual car. Put that in your pipe and smoke it!
CHO: We're in the last 13 minutes of the show, aren't we?
MARCIANO: We certainly are.
CHO: You know, I have never seen that movie.
MARCIANO: Come on!
CHO: I swear.
MARCIANO: That's because you're entering spelling bees, for crying out loud!
CHO: I was too busy studying.
MARCIANO: But look where it got you! Congratulations. Nice to have you with us.
CHO: All right.
A decommissioned U.S. warship now swimming with the fishes. We're going to show and tell you why the ship was sunk on purpose in the Gulf of Mexico.
It's 48 minutes after the hour.
(COMMERCIAL BREAK)
CHO: Beyonce this morning at 51 minutes past.
Top videos right now on CNN.com. Most popular, a 911 call over a juice box. A very unhappy meal at McDonald's earlier this week when a conflict over a missing orange juice resulted in jail time for one Oregon man. He told 911 that the cashier mocked his brother-in-law's poor English when they asked her for the missing drink. Deputies arrested the man for misuse of emergency services.
Also, Noah's Ark has come ashore in Hong Kong. A replica of the biblical ship is area's newest theme park. Architects built the 450- foot ship and fiberglass animals to match exact details lifted from the bible.
And a British man will be locked in a tower for 40 days and 40 nights in a project commissioned by the Manchester Museum. The man will be given 40 artifacts not on display at the museum and has to reflect on that. Obviously, somebody has a lot of time on their hands.
Fifty-two minutes past.
It's that day again. Every Thursday, CNN's chief medical correspondent Dr. Sanjay Gupta digs into his mailbag and answers your questions. Sanjay joins us this morning, not from Atlanta, but right here.
DR. SANJAY GUPTA, CNN CHIEF MEDICAL CORRESPONDENT: My favorite segment of the week. Good morning.
CHO: Good morning. It's my favorite segment of the week, too. And I'm not just saying that because you're sitting next to me.
GUPTA: I think you might be.
CHO: So let's get started.
First question. It's summertime so we got a question from Thespena, she wants to know, "My son is three and has outgrown the kiddie pool, but I'm nervous about him swimming in deeper water. I've heard that toddlers can drown in water only a few inches deep. Is that true?"
She's from Indiana. And obviously, a lot of parents are concerned about this, particularly because of the season we're in.
GUPTA: Yes, and I have three small children and I think about this all the time.
You can drown in very little water. That is absolutely true. In fact, even an inch of water can be enough for a child to drown. Children are top heavy so if they fall, their head falls into the water and sometimes it's very hard for them to right themselves and get their head out of the water. That's the issue here. Of drownings, highest in the age group under four. Twice as high as about any other age group. So lots of things...
CHO: So keep them in the kiddie pool?
GUPTA: Well, kiddie pool is obviously one place, but there are other things that you can you do. I mean, one thing to keep in mind is supervision any time a child is around water. And you know, most drownings don't occur sort of Hollywood style. They are often quick and they are quiet. So you really got to be around, more than anything else.
CHO: Scary.
GUPTA: Also learning CPR. I talk about this all the time on AMERICAN MORNING. You can go to americanheart.org and you can learn CPR. You can do it in a weekend course. You could save somebody's life. I would do that today, if you could. Go to the site home pool: install four-sided fence. You can reduce drownings by 90 percent and also safe drains. I mean these drains can be very dangerous. There's federal law...
CHO: They could suck them in, right?
GUPTA: That's right.
CHO: Yes.
GUPTA: They can suck them in. They can suck them by their hair or their clothes. It can be tragic. Federal law says that public pools have to have these safe drains but your private pool as well, it's very important.
CHO: Those pool fences are so very important. It's just an easy thing to do, just put it up, you know.
GUPTA: For kids and animals. Yes.
CHO: I want to get to the second question from Victoria. And she asks "I get confused trying to track my blood pressure rate. I never know what's more important, the systolic or diastolic number. Can you help me?"
GUPTA: Yes, I'm glad you asked. You know, it's funny, because people think about blood pressure all the time, but there are a lot of numbers and it does get confusing.
First of all, they are both important to some extent. When you talk about systolic and diastolic, systolic is the upper number. That is basically measuring the pressure in your arteries when your heart is beating. That is the first number. That is the top number.
The diastolic number is measuring the pressure in your arteries when the heart is at rest.
So take a look at the numbers. What you want, in terms of where they should strike, roughly, healthy systolic less than 120 and healthy diastolic less than 80. Those are rough guidelines and it varies from people to people. I know you, for example, have a low blood pressure...
CHO: Right.
GUPTA: ... and some people are going to run a little bit higher. People always get mixed up between systolic...
CHO: Right.
GUPTA: ... and diastolic. Systolic is the upper number and diastolic the lower. Saints and devils.
CHO: And the lower numbers always should be lower!
GUPTA: Yes. If the lower number is higher, you got a real problem there. No question. But remember, saints and devils and you will never forget it.
CHO: Got it. Sanjay Gupta, as always, great to see you. Thanks.
GUPTA: Right.
MARCIANO: The story of Alina's life. Saints and devils.
All right, it took more than 10 years of planning. A massive U.S. warship sunk in less than two minutes. We'll tell you what this retired troop carrier will be doing next live at the sandy bottom of the Florida Keys where I might be in a couple of minutes.
It's 55 minutes after 8:00.
CHO: You're talking about my boyfriend!
(COMMERCIAL BREAK)
MARCIANO: Well, the newest tourist attraction in the Florida keys is sitting at the bottom of the ocean. Why? Well, CNN's Jeanne Moos has the story. It's one of the most popular on CNN.com.
(BEGIN VIDEOTAPE)
JEANNE MOOS, CNN CORRESPONDENT (voice-over): Prepare for that sinking sensation.
(VIDEO CLIP)
It's not so much the 44 explosive charges that make an impression, it's watching a former troop carrier sink lower and lower and lower -- until the stern of the Vandenberg disappeared, sort of makes you say the same four-letter word over and over again.
JOE WEATHERBY, REEF MAKERS: That's pretty cool, huh.
It was a pretty cool experience.
Pretty cool.
It's pretty cool.
MOOS: The holes they cut in the ship made it sink right side up in just under two minutes.
(on camera): Took less time for the Vandenberg to sink than it took for a storm to sink the ship in "The Little Mermaid."
(voice-over): It will be better for the fish.
The Vandenberg used to track space shots and missiles. Now it will be a habitat for marine life off Key West. It's the second biggest artificial reef in the world, meant to attract divers and tourism dollars. The biggest artificial reef is an aircraft carrier sunk off Pensacola, Florida.
Spectators paid from $75 to $300 to watch the Vandenberg go down.
(on camera): The sinking was delayed for about 20 minutes. They had to wait for a sea turtle to swim out of the danger zone.
And speaking of danger, the Vandenberg had a previous starring role in the 1995 film, "Virus." It was cast as a Russian scientific vessel attacked by robotic aliens.
It's a little sad to see the last of a ship go under.
WEATHERBY: It's a wonder to behold.
MOOS: Joe Weatherby described sinking the ship as surgery.
UNIDENTIFIED MALE: This brain is still alive. MOOS: In the movie "Virus," the ship ends up getting blown up. But they didn't really blow it up. Good thing, because there would have been no ship to blow up this time.
Swim with the fishes, Vandenberg.
Jeanne Moos, CNN, New York.
(END VIDEOTAPE)
