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American Morning

Gadhafi Vowing to Die a Martyr; Wisconsin Budget Battle Continues; Christchurch in Ruins; Rahm Emanuel Takes Chicago; Getting Americans Out of Libya; Double Dip for Home Prices; Hostages Killed by Pirates; Violent Riots in Greece; Amelia Earhart: Mystery Solved?

Aired February 23, 2011 - 06:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


T.J. HOLMES, CNN ANCHOR: Hello, everybody. It's early. We're just getting started on this AMERICAN MORNING. And we will keep a close eye on Libya this morning where Moammar Gadhafi is vowing to execute anyone who crosses him.

Meanwhile, Americans are scrambling to get out this morning. We're also keeping an eye on oil prices soaring.

KIRAN CHETRY, CNN ANCHOR: Also, the U.S. military offering up a chilling account of the final moments before four Americans hijacked by pirates were shot to death at sea.

HOLMES: Also, at least 75 dead now and hundreds more missing after that earthquake in New Zealand. Rescuers forced to retreat this morning, as well because some buildings could still collapse.

CHETRY: And if you're upside down on your home and you're counting on home values to finally start rising, you may be in for a big disappointment. But we have some advice when it comes to the housing market this morning. Stick with us. AMERICAN MORNING coming right up.

(COMMERCIAL BREAK)

CHETRY: Wisconsin's governor digs in his heels, not giving ground in his standoff with unions. And now more states are facing political gridlock as they're forced to make tough choices to stay afloat.

HOLMES: Also, sure, the economy may be gaining some steam. Home prices, not gaining a doggone thing. Another huge drop to tell you about this morning. And some say we may not be at the bottom yet.

CHETRY: And new information about just what the radiation from a cell phone may be doing to your brain and why you may want to make that next call from a landline. This is AMERICAN MORNING.

And good morning to you. Glad you're with us on this Wednesday, it's February 23rd. I'm Kiran Chetry.

HOLMES: And hello to you all. I'm T.J. Holmes.

We do want to start in Libya where strongman Moammar Gadhafi is sending a clear message to those who oppose him. And the latest reports this morning that Libya's former interior minister has been kidnapped, recently resigned to support the anti-government protesters.

Now despite his defiant tone, Gadhafi appears to be losing some of his grip, at least, in parts of his country. Protesters backed by army defectors may have control of half of Libya's Mediterranean coast, some major oil producing areas there. But Gadhafi literally pounding his fists in a speech, says he'll fight until the last drop of blood.

(BEGIN VIDEO CLIP)

MOAMMAR GADHAFI, LIBYAN PRESIDENT (through translator): Whoever cooperates with foreign countries in order to instigate war against Libya, the punishment will be execution. Whoever tampers with the country is also punished by execution.

(END VIDEO CLIP)

HOLMES: Now there are Americans trying to get out right now. And they are running out of time to do so. State Department has set up -- as you're seeing here in the map. That's where the Americans are trying to go. They have about two hours now to get to the As-shabab (ph) Port. That's in Tripoli, the capital. They need to get there with their I.D.s if they want to leave. There are some 5,000 U.S. citizens there. A ferry going to be leaving at 3:00 Libya time. Again, that is in two hours Eastern Time. So 8:00 a.m. Eastern Time. And they're going to take them to Malta to safety.

Now this conflict, also, another side effect of it, it is driving oil prices to a 2 1/2 year high. International oil companies like Shell, BP have shut down their Libyan operations and have flown their crews to safety, as well.

We're going to be talking to the former assistant Secretary of State Jamie Rubin about all things Libya coming up in just a few minutes. And also, we're going to be talking about these oil prices this morning and just how high they could go with another guest we'll have. And coming up in about an hour and a half, at 7:40 Eastern Time, Jim Burkhard.

CHETRY: Well, new developments overnight in Bahrain, as well. At least 50 political prisoners have been released, including 23 people accused of trying to overthrow the kingdom's Sunni-Muslim monarchy. Tens of thousands of protesters jammed the streets of the capital yesterday, shouting "no Shia, no Sunni, only Bahraini." They want King Hamad ibn Isa Al Khalifa out. He's been busy promoting a new national dialogue while holding meetings with members of the opposition. He'll be in Saudi Arabia today for an official state visit.

HOLMES: Well, the anti-government protests continue in Yemen, as well. Two demonstrators killed there when the government loyalists opened fire on crowds. Among the dead, reportedly students there. Witnesses say at least 20 others were injured. Either shot or hit by rocks.

CHETRY: Saudi Arabia's King Abdullah returning home from Morocco. He had been recovering from surgery that he had in the U.S. in November. He quickly made moves to try to stop his country from being the next domino. The king announced new housing benefits and social benefits for civil servants, students, as well as others.

There are new details emerging this morning about the four Americans killed by pirates off the coast of Oman. Their yacht was hijacked on Friday. The U.S. military had been following it. The FBI was negotiating the Americans' release. But the situation took a tragic turn yesterday when a rocket-propelled grenade was fired at a Navy ship about 600 yards away. It missed. Then the sound of gunfire could be heard onboard the yacht. When naval forces reached that boat, the four Americans had been shot.

Two pirates were also found dead and U.S. forces killed two others. They arrested 15 others. Coming up in the next half hour, we're going to have more on the story of the Americans. We're going to be speaking to someone who knew them very well.

HOLMES: Well, the second largest city in New Zealand is in ruins today. Christchurch, 6.3 magnitude earthquake that hit there has left now 75 people dead. Hundreds more are missing and feared dead, as well. The rescue effort has been difficult. Of course, you have to deal with aftershocks but rescue teams had to be pulled out of central Christchurch a few hours ago over concerns that a tall building would collapse.

Two of the city's tallest office buildings have already come down, including the Canterbury Television headquarters. Twenty-four Japanese exchange students were inside and remain missing. People everywhere now are waiting for word of their missing loved ones.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Our school collapsed. And I saw on the -- I heard that my friend they didn't come out.

UNIDENTIFIED FEMALE: We're just worried --

UNIDENTIFIED FEMALE: Waiting and hoping.

UNIDENTIFIED FEMALE: Just hoping.

UNIDENTIFIED FEMALE: The dogs have gone in now also. We're hoping the dogs will find --

UNIDENTIFIED FEMALE: She loves animals.

UNIDENTIFIED FEMALE: I don't believe it. Why this building?

(END VIDEO CLIP)

HOLMES: Meanwhile, they are getting help in their efforts there in New Zealand from all over the world, including from the U.S. The Los Angeles County Search and Rescue Unit is being deployed to New Zealand. They're expected to arrive there today. This unit includes 74 specifically trained firefighters, has doctors, civil engineers, as well. They'll be taking 55,000 pounds of equipment. Teams from Australia, Singapore, Japan also heading to Christchurch.

CHETRY: Meantime, political gridlock spreading across the nation's heartland. In Wisconsin, the budget battle continues. Protesters rallying again in Madison in opposition to a bill that would effectively strip public employees, teachers of their collective bargaining rights. State senators cannot vote on it until the 14 Democrats who fled the state return. Wisconsin's Republican governor, Scott Walker, went on television last night appealing to his opponents.

(BEGIN VIDEO CLIP)

GOV. SCOTT WALKER (R), WISCONSIN: You see, despite a lot of the rhetoric we've heard over the past 11 days, the bill I put forward isn't aimed at state workers. And it certainly isn't a battle with unions. The legislation I put forward is about one thing. It's about balancing our budget. Now and in the future.

(END VIDEO CLIP)

HOLMES: Now we are seeing similar scenes in Ohio, as well. Take a look at that.

Thousands of demonstrators packed into the state House there in Columbus. They are opposed to a bill there that could possibly restrict their collective bargaining rights. They chanted "kill the bill" there.

Unlike Wisconsin, though, Ohio's budget bill expands the field of public workers affected to include police and firefighters. The Ohio governor, John Kasich, says he's trying to restore balance to the system, not destroy the unions.

CHETRY: Then in Indiana, they're taking a page from the Wisconsin playbook. House Democrats staging a walkout in that state, as well. The state's Democratic Party chairman says the lawmakers will return when Republicans drop legislation, they say, is an assault on the middle class. And just as in Wisconsin and Ohio, the dispute is over a measure that would reduce private sector union rights.

HOLMES: Rahm Emanuel may be getting his dream job after all. Mayor of Chicago. He, of course, the former Obama chief of staff who left to ran for mayor of Chicago, appears he will get that job. He beat five of his rivals, got 55 percent of the vote in yesterday's voting. Because he got more than 50 percent, that means he can avoid a runoff. In his victory speech, he joked about that flap that came up during the campaign about whether or not he had the right residency to run.

(BEGIN VIDEO CLIP)

RAHM EMANUEL (D), MAYOR-ELECT, CHICAGO: Thank you, Chicago, for this humbling victory. All I can say, you sure know how to make a guy feel at home.

(END VIDEO CLIP) HOLMES: He'll be taking office in mid-May. He is going to be taking office from Richard Daley who is retiring after more than 20 years in office.

CHETRY: How about this one? An elderly woman may be alive today, thanks to her love of pizza.

HOLMES: OK.

CHETRY: And she really loves pizza. The 82-year-old woman ordered Domino's every single day of pepperoni pizza every day from Domino's for three years. So when workers at the store she ordered from didn't hear from her in a few days, they thought something was wrong. Here's what happened.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: She always ordered a large, thin crust pepperoni pizza with two diet cokes.

UNIDENTIFIED FEMALE: And I said she hasn't called in three days, I go, I've got to go. I've got to go. And he was like, he's like, no, you don't have to do that. I said, yes, I do. I said clock me out if that's what you have to do.

(END VIDEO CLIP)

CHETRY: Sure enough, the delivery woman you just heard from went to the door, no one answered, so she called 911. And sure enough, when the police arrived, they broke down the door and they found that she was lying on the floor inside. She had fallen and she could not get help to get to the phone -- to get help. So bottom line, it was that Good Samaritan at Domino's who said, you know what, something's not right. She orders every day.

HOLMES: That's amazing she's done the same thing for three years. A nice story there to go into. Rob Marciano, say good morning to you this morning, keeping an eye on the weather for us.

No, there's no Rob Marciano. I can't believe this.

REYNOLDS WOLF, AMS METEOROLOGIST: Rob Marciano. Oh, my goodness.

HOLMES: My man. My man. Reynolds Wolf. Buddy, good to see you.

WOLF: You should be ashamed.

HOLMES: That's a pleasant surprise.

WOLF: It's like having a freshly delivered pizza brought to your house.

CHETRY: Yes, you know, I was thinking -- I was thinking that if they didn't see us at the drive-through, McDonald's drive-through after church on Sunday, they might come to our house, too. Unfortunately, we're habitual there. WOLF: Absolutely. You know, love McDonald's, and pizza is the way to go. Guys, my astrological sign is pepperoni. My blood type is Ragu.

Let's go right to the forecast and show you what we got. Fog in Florida right now. That's one of the big stories. In the center of the country, scattered showers from the central plains, mid- Mississippi Valley back down to portions of central Texas. Austin, Texas, I'm talking about you. You may get some rainfall to deal with today.

Central Great Lakes and also up towards Thunder Bay in parts of Minnesota, look out for the snowfall and possibly some heavy snowfall in parts of the Pacific Northwest, even the low lying areas. As we wrap things up, let's go take a look at your national temperatures. Fifty-three degrees the expected high in Kansas City, 39 in Salt Lake City, 39 in Portland, 43 in Washington, D.C., and 43 in New York. We finish up in 63 degrees in Memphis, Tennessee, the hometown of T.J. Holmes. Actually, west Memphis. West Memphis, where you can have a pizza delivered to your home. Isn't that right, T.J.? Let's send it back to you.

HOLMES: Absolutely. Reynolds, good to see you this morning, buddy.

WOLF: Good to see you too.

HOLMES: We'll talk to you again plenty throughout the morning.

WOLF: You bet.

HOLMES: Also ahead here on this AMERICAN MORNING, we'll give you the very latest on what's happening in Libya, including an effort that's going on right now to get Americans out. We're talking to Jamie Rubin here in just a moment.

CHETRY: Also, there's a new study showing radiation from cell phones does affect the brain more than previously thought. But does it rise to the level of being dangerous to your health? We're going to have more on that study still ahead.

HOLMES: Also, this morning, she is 95 years old. And chances are, she can outrun you.

It's 11 minutes past the hour on this AMERICAN MORNING.

(COMMERCIAL BREAK)

CHETRY: Fourteen minutes past the hour. There are two new booking photos of Tucson shooting suspect Jared Loughner that have been released by the U.S. Marshals office. And just like the first one we saw, they are disturbing. There he is grinning in that shot and also in another shot, the side view. And you see he still has a bruised head and a swollen eye. This is, again, the day of the shooting. These pictures were obtained yesterday by CNN through the Freedom of Information Act request that was filed last month -- T.J.

HOLMES: Kiran, the effort is underway right now to get Americans out of Libya. A ferry is going to be leaving Tripoli here in just about two hours, so 8:00 Eastern Time. There are at least 600 Americans that have registered with the embassy there, but still a few more thousand Americans that are expected to be there. I don't know how many they will be able to get out, but the effort is underway right now.

James Rubin is the former Assistant Secretary of State. He's now the Executive Editor of the "Bloomberg View," overseas editorials put out by Bloomberg News Services. Always good to have you here with us.

Some people seem to be jumping ship, if you will, when it comes to Gadhafi's regime. He's had several members of his government to step away from him, to come out publicly. The military now we hear about defections. Is this disturbing when it comes to at least stability in the country?

JAMES RUBIN, FORMER U.S. ASST. SECRETARY OF STATE UNDER PRES. CLINTON: Yes, there's no question that Libya's going to be chaotic for some period of time. How chaotic and how serious the violence becomes is the question.

It seems to me that Gadhafi has prepared himself for many decades for this kind of moment by hiring security services from different parts of the world, by creating an elaborate personal security structure. And it's clear to me, at least, that - that he's going to fight and fight till the end. Then that means there's going to be military activity, battles, civil strife, and a lot of people are going to suffer.

HOLMES: But unlike Egypt, there doesn't seem to be a military there that can step in and stabilize the country in place of Gadhafi if he goes.

RUBIN: There is no centralized military that has the respect of all the people around the country. You see regional splits developing now. You're going to see tribal splits developing. And ultimately people are going to choose sides and - and bullets are going to fly and people are going to be hurt. This is going to be very ugly.

HOLMES: And there is nothing to transition to. We said the military can't stabilize, but I mean, what is - what can we even think of that could go in place of Gadhafi if he decided to step down, no indication he will. What is - what could possibly replace him? What could stabilize it?

RUBIN: Well, depending on how the regime ends, I think you could imagine some society - civil society building slowly in Libya. But in the initial phases, this will probably be tribal, regional, some leftovers from the regime. And I think we can - we can - this is, you know, highly technocratic society. There are serious civil servants there. So there's no reason to assume that it will all sink into anarchy like Somalia or something like that.

But first, you've got to get past the primary hurdle, which is the international community has got to figure out a way to put convincing pressure on Gadhafi to stop this mass murder. HOLMES: Well, who has influence over Gadhafi at all of what little influence there might be? But outside of Libya, who has the most influence, would you say?

RUBIN: Well, I don't think there's any individual country. This isn't a situation where, you know, the Russians or the Chinese or - or even Egypt or anyone. Gadhafi is mercurial. He has friendships based on personal loyalty. The president of Nicaragua has stood up and defended him.

So I think what we're going to have to do is show him through the actions of the international community, the Security Council, and other leaders taking - taking steps such as threatening to re-impose sanctions and perhaps further measures to let him know that there's no end that involves him staying in power.

HOLMES: OK. Last thing here - and you kind of hit on it a moment ago. But this isn't a country that has a great sense of nationalism. Libyans are split into so many different tribes and groups there. It sounds like that is going to be playing a huge role in how this works out and the chaos even you say is coming.

RUBIN: Yes, I - I do think there will - the identity politics in Libya are fairly complicated because Gadhafi built it all around himself. And so with him gone or going, people are going to revert to family, to tribe, to region.

But I don't think we should assume that Libya will become completely, you know, a failed state without Gadhafi. There are serious technocratic civil servants. There's a civil society to a degree. And, you know, the place can hold together without him. But first we have to get there.

HOLMES: All right. Well, it seems like we have a long way to go. Jamie Rubin -

RUBIN: Thank you.

HOLMES: -- good to see you as always.

RUBIN: Nice to see you.

HOLMES: Thanks so much - Kiran.

CHETRY: All right. Well, still ahead, there's a new study showing radiation from cell phones does affect the brain more than previously thought. But the question now is, is it actually dangerous to your health? We'll have more details on that study.

Also, it's been years since the housing bubble burst. Remember that? Well, there's new information that reveals the bust may not be over yet. Christine Romans joins us with some advice if you're looking to sell your home or perhaps you're a new buyer.

It's 20 minutes past the hour.

(COMMERCIAL BREAK)

CHETRY: Twenty-three minutes past the hour right now.

New this morning, police in Petersburg - St. Petersburg, Florida, say that a 16-year-old has now confessed to killing a police officer Monday night. Formal charges against the teen are expected to be announced today. According to police officer, David Crawford was responding to reports of a suspicious person carrying a brick when he was shot. Crawford is the third St. Petersburg police officer killed on duty in less than a month.

HOLMES: You are running out of places to smoke in New York City. Mayor Bloomberg has just signed the city's newest smoking ban that goes into effect 90 days from now. But there's no smoking now in parks, no smoking at beaches. You can't smoke in pedestrian plazas, like the ones in Time Square.

This is going to be enforced by the Parks Department, not necessarily the police here. But if you get busted, they could give you a warning the first time around, but you could also be fined and hit with a $50 fine for a violation.

CHETRY: So for the price of a pack of cigarettes in New York City.

HOLMES: But, yes -

CHETRY: (INAUDIBLE). They have huge taxes on it.

HOLMES: Yes.

CHETRY: Sin taxes on that one.

Well, your cell phone and your brain. There's been a lot of questions, of course, as to whether or not there are problems with the - using cell phones and whether or not we're exposing ourselves. But researchers studied 47 adults exposed to a 50-minute phone conversation and they concluded that the radiation increases the activity in brain cells. But they say that they're not sure that that radiation exposure causes cancer. Phones that were off did not create the same brain activity. A wireless industry trade group responded saying there is no research that cell phones are dangerous to a person's health.

And four Americans hijacked at sea, pirates shot them to death on their yacht yesterday. Well, today we're learning more about the final moments that led up to that rescue gone wrong.

HOLMES: Now, you've seen a lot of the scenes of teachers under fire in Wisconsin and Ohio, protesting at the state capitals. They're facing a lot of cuts in jobs and benefits, but one state actually increasing funding for schools.

Twenty-five minutes past the hour.

(COMMERCIAL BREAK)

CHETRY: Twenty-three minutes past the hour right now.

New this morning, police in Petersburg - St. Petersburg, Florida say that a 16-year-old has now confessed to killing a police officer Monday night. Formal charges against the teen are expected to be announced today.

According to police, Officer David Crawford was responding to reports of a suspicious person carrying a brick when he was shot. Crawford is the third St. Petersburg police officer killed on duty in less than a month.

HOLMES: You are running out of places to smoke in New York City. Mayor Bloomberg has just signed the city's newest smoking ban that goes into effect 90 days from now, but there's no smoking now in parks, no smoking at beaches, you can't smoke in pedestrian plazas, like the ones in Times Square.

Now, this is going to be enforced by the - the parks department, not necessarily the police here. But, if you get busted, they could give you a warning the first time around, but you could also be fined and hit with a $50 fine for a violation.

CHETRY: So - so the price of a pack of cigarettes in New York City.

HOLMES: You know, we just -

CHETRY: (INAUDIBLE) up there. They have huge taxes on it.

HOLMES: Yes.

CHETRY: Big sin taxes on that one.

Well, your cell phone and your brain. There's been a lot of questions, of course, as to whether or not there are problems with the cell - using cell phones and whether or not we're exposing ourselves. But researchers studied 47 adults exposed to a 50-minute phone conversation and they concluded that the radiation increases the activity in brain cells but they say that they're not sure that that radiation exposure causes cancer. Phones that were off did not create the same brain activity.

A wireless industry trade group responded, saying there is no research that cell phones are dangerous to a person's health.

And four Americans hijacked at sea, pirates shot them to death on their yacht yesterday. Well, today we're learning more about the final moments that led up to that rescue gone wrong.

HOLMES: Now, you've seen a lot of the scenes of teachers under fire in Wisconsin and Ohio, protesting at the state capitals. They're facing a lot of cuts in jobs and benefits, but one state actually increasing funding for schools.

Twenty-five minutes past the hour.

(COMMERCIAL BREAK) CHETRY: It's 28 minutes past the hour right now. Christine Romans joins us, "Minding Your Business."

Not the best news when it comes to whether or not the housing market has - has bottomed out at this point.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: No. I mean, most people are saying it's pretty terrible news, actually. When you look at the Case Shiller report - pretty much the similar (ph) report on - on what's happening in the housing market. It shows that it just - it did not recover last year as many people thought, and by the end of the year, it was worse. Five months in a row of price declines for your home, and by the last month of the year, home prices in major cities fell another one percent.

You guys, in 11 cities, they hit new lows for the housing bust. So it's the housing bust that just keeps busting. It just keeps going on.

Let me show you some of these cities. Atlanta, down eight percent last year in home prices; Chicago, also down seven percent; Detroit, Tampa, Phoenix.

Why is this happening? Demand is weak. You still have foreclosures. You have potentially millions of foreclosures over the next few years. You have a record number of people who are underwater on their loans. As those prices continue to fall, that means people owe more on their house than the house is worth. That makes it very difficult to sell the house. If you need to, if you want to, and if you have to, you're selling the house for a loss.

So, a couple of things here. In Washington, D.C., prices rose. In San Diego, prices rose. Those are the two little bright spots there, the San Diego market and the Washington, D.C. market. A lot of money in Washington, D.C. these days, you know? So that's why that one has moved higher.

CHETRY: What do you do if you're - if you want to sell right now, and you - you have no choice?

ROMANS: You know, you're usually in three positions, right? You've been trying to sell, you're trying to buy, or you want to live in a house you've got, or you're renting, I guess.

If you're trying to sell a house, you have to price it right. Every expert says this. Don't price it too high. Make sure you're pricing it right. And make sure it's got curb appeal and you're focusing on the most important thing here, which is a good school district, close to commute.

This is how houses are being sold all the time. And, in fact, houses are being sold in a lot of different neighborhoods. But that is how a house is being sold.

If you want to buy a house, you need to have -- I think the average right now is about 22 percent down. You have to have 22 percent down, you have to have an excellent credit score, 750 or higher, you got to have money in the bank, six months of your bills in the bank, and your -- all of the expenses get tied to a house, it's harder to get a mortgage these days.

If you want to live in the house, you love the house that you're in right now, careful with the renovations. The return on your renovation investment has been falling for four or five years now. So, if you're living in your house, be strategic about where you're pumping money into your house. Curb appeal -- again, you know, steel front door. A big fancy kitchen -- probably isn't the best time to do that.

HOLMES: You told me this once before and I was amazed by -- you actually do just need to put a spin shine on it almost on the outside and make it look good and appealing.

ROMANS: That's right. It's true. The best dollars are spent on the curb appeal kinds of things. The renovation statistics are all showing that -- for example, like garage door or certain kinds of -- certain kind of siding. These are the things that are -- you're getting the most investment out of and are helping you sell a house.

HOLMES: All right. Christine Romans, we appreciate the news, the reality of what we're dealing with. Thanks so much.

ROMANS: You're welcome.

All right, giving you a look here at the bottom of the hour at some of the stories making headlines.

Americans are trying to get out of Libya right now. They are scheduled to get on a ferry. The State Department has organized this and to take them to Malta. This is supposed to leave in the next 90 minutes. There are some 600 Americans registered with the embassy there in Tripoli.

Meanwhile, Moammar Gadhafi continues to be defiant, says he will fight in Libya until his last drop of blood.

CHETRY: The ACLU and a Muslim group are suing the FBI for an alleged illegal surveillance. A federal class action suit will be announced today. And it claims an FBI informant infiltrated a California mosque and randomly targeted Muslims for surveillance, violating their First Amendment rights. An FBI spokesman responded saying groups or individuals are not targeted based on religion.

HOLMES: And in Wisconsin, the governor, Scott Walker, he says the system is broken. He went on TV last night in his state and defended his budget. That bill, as you know, is designed to certainly curb their deficits there. But also, it would strip public workers of most of their collective bargaining rights.

He says mass layoffs could begin soon if that bill is not passed. However, no movement can take place on that bill until 14 Senate Democrats who fled the state come back. CHETRY: Well, we're -- in New Jersey right now, a state facing an $11 billion budget deficit, but they're actually boosting education funding. Governor Chris Christie unveiling the state's $29 billion spending plan yesterday. It calls for cuts in Medicaid spending for the elderly and disabled by $1.3 billion.

Christie also wants to reduce the size of the state's workforce, freeze salaries, and force government employees to pay dramatically more for their health care benefits, increasing aid, though, to New Jersey's struggling schools.

(BEGIN VIDEO CLIP)

GOV. CHRIS CHRISTIE (R), NEW JERSEY: Last year, school districts saw cuts in their funding because our state was facing a fiscal emergency. Today, because of the hard and necessary choices we have made, I am pleased to report that we're able to provide an increase of $250 million in school aid. We must continue to cut government --

(END VIDEO CLIP)

CHETRY: Governor Christie also wants to cuts business taxes. If his budget passes, overall state spending will be cut by 2.6 percent.

HOLMES: Well, things could be looking different for the Newark school district, could be some big changes coming. There's a plan being considered there that would close some schools and consolidate the students. It would also create more room there for charter schools. The mayor, Cory Booker, he is dealing with a lot of criticism over this proposed plan, but he says efficiency is the key for them.

(BEGIN VIDEO CLIP)

MAYOR CORY BOOKER (D), NEWARK: Give me all these budget cuts -- we've got to consolidate schools to save money so we're not cutting into teachers.

(END VIDEO CLIP)

HOLMES: This plan being considered also would add five new public schools. There are also plans being considered for a high school for gay and lesbian students, also a school for students recently released from jail.

CHETRY: Well, we're learning more this morning about the final moments of a deadly hijacking off the coast of Somalia. Four Americans were killed by pirates four days after their yacht was seized in the Indian Ocean.

HOLMES: U.S. Navy forces have been following the vessel when they say an RPG was fired from the yacht. Well, then, gunfire was heard aboard that yacht. Navy SEALs then were able to rush in. They found the four Americans shot. They killed two of the pirates while taking control of that yacht. And all four pirates were killed.

Our Jason Carroll is following this story for us. And friends, family, you know, just everybody shocked with how this came out.

JASON CARROLL, CNN CORRESPONDENT: Everyone was hoping for a positive outcome. It was not to be. Not this time.

You know, friends and families of the four Americans are still trying to cope with the loss and still trying to figure out why the four Americans were in the seas known as "Pirate Alley." The avid sailors Jean and Scott Adam from Marina Del Rey, California, and Phyllis Macay and Bob Riggle from Seattle, Washington were on a round-the-world boating adventure.

They had been sailing on the Adams' boat called the Quest with a rally of other yachts since December. Their voyage started in Thailand, but in the mid-February, after reaching Mumbai, India, the four sailors broke off from the other yachts in the group. A friend of the victims is baffled as to why the four separated and went off on their own.

(BEGIN VIDEO CLIP)

RICHARD PEACE, FRIEND OF SCOTT AND JEAN ADAM: Scott knew the dangers. He was well aware of the problem. He only went -- he only went on this particular route because of the safety that the rally presented.

(END VIDEO CLIP)

CARROLL: Well, Nina Crossland says her aunt Phyllis Macay was also well aware of the dangers having previously sailed around the world with Riggle.

(BEGIN VIDEO CLIP)

NINA CROSSLAND, NIECE OF PHYLLIS MACAY: Why they were on that area, we don't know. But she was not haphazardly out on the ocean just doing, you know, loosely traveling around.

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CARROLL: Well, since 2004, the Adams spent most of their time at sea, keeping friends updated with an online travel log. Friends say sailing was not only an adventure for them, but also a ministry. Scott Adam received degrees in theology, and the couple made it a practice to hand out Bibles during their travels.

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PEACE: Scott and Jean would stop at remote islands in the South Pacific. They'd hook up with a local church there, Scott would often preach.

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CARROLL: Well, friends and family say even though the four sailors knew the risks at sea, they were all doing what they loved to do. And yesterday, there was a special service at St. Monica Church. That's out there in southern California in Santa Monica for the families. Just, you know, sad story.

CHETRY: It is. And you referred to it as "Pirate Alley," 53 different hijackings, and all but four were in that area. Usually, though, they want ransom. So, it seems unusual this turn of events. Do they know why they shot and killed the four?

CARROLL: Well, the details still trying -- still trying to be worked out in terms of what went wrong. Obviously something went wrong in this particular situation. One of the pirates was interviewed and basically said there was a discrepancy in terms of how things had gone down. But, end result: four lives gone.

HOLMES: Jason Carroll for us this morning -- we appreciate you as always. And we're going to be talking a little later with a minister and friend of the murdered hostage Scott Adam. He's coming up at about 10 minutes past the hour.

CHETRY: Also, Senate Majority Leader Harry Reid's next mission, sparking a fire storm around the state as he takes on prostitution.

HOLMES: Also coming up, would you give your 12-year-old a beer? There's a new study -- a disturbing one about just how much drinking begins at home.

It's 38 minutes past the hour.

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CHETRY: We got some breaking news right now. And live pictures coming to us out of Greece where police are firing tear gas at dozens of stone-throwing demonstrators.

Thousands are marching through Athens to parliament. They are upset about the austerity measures proposed by the European Union and the International Monetary Fund. And they were walking off the job in anger over these cuts and shutting down public services, affecting transportation as well as other things.

But you can actually hear -- you can actually hear the sound of something being fired right now. We're getting reports that it is tear gas as they're trying to disperse that crowd. Again, the crowd of demonstrators -- dozens of them there said to be throwing stones and marching to parliament in protest. We're going to continue to follow some of the unrest that's going on in Greece throughout the morning.

HOLMES: And also this morning, back here in the U.S., one potential candidate for president in 2012 says no to a run. South Dakota Republican John Thune, he is telling reporters he will focus on his work in the capitol instead. He was labeled a rising star in the GOP after beating then-Senate Majority Leader Tom Daschle back in 2004.

CHETRY: Senator Harry Reid wants to ban Nevada's brothels. The Democrat is calling on Nevada lawmakers to have what he calls an adult conversation about outlawing prostitution. Reid says he believes brothels are no good for Nevada's image. (BEGIN VIDEO CLIP)

SEN. HARRY REID (D), NEVADA: I've talked to families who feel the same way -- parents who don't want their children to look out a school bus and see a brothel. Or to live in a state with the wrong kind of red lights.

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CHETRY: Reid also said Nevada should focus on new jobs, not its oldest profession.

HOLMES: Also, most parents out there wouldn't dream of giving their 12-year-old child a beer. But, a federal study says 6 percent of kids between the ages of 12 to 14 -- 14 years old drank alcohol in the past month. And 1/3 of them got those drinks at home from their parents or from family members. Saying this is a pretty risky thing to do. People who drink alcohol before they turn 15, six times more likely to develop drinking problems down the road.

CHETRY: Well, putting on a happy face may backfire. A new study for Michigan State University says that forcing workers to smile when they don't feel like it is actually bad for business, that it worsens people's mood and can lead to emotional exhaustion and withdrawal. The study followed bus drivers in East Lansing, Michigan, for two weeks.

HOLMES: Yes. No, this is genuine. This is authentic.

We've got to follow up on another story, one of our favorite stories in the past few weeks here. This is about the Wake Forest baseball coach Tom Walter. He donated a kidney to one of his players this month.

It turns out -- listen to this -- he's had a pretty tough go. He's a Hurricane Katrina survivor, lost almost everything in that storm. He was coaching University of New Orleans at the time, then he went above and beyond to save his program.

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UNIDENTIFIED MALE: You don't know what's going on, you don't know what's going to happen. He said, no, we're going to play.

TOM WALTER, WAKE FOREST COACH: The players -- you know, out of respect and loyalty to the players. It always nothing -- it never occurred to me to give up on those guys.

(END VIDEO CLIP)

HOLMES: Now, Walter was given a standing ovation. You're seeing him going back showing the shots of his old team there in New Orleans. But Wake Forest is where he coaches now. He got a standing ovation when he opened their season last week.

But apparently everybody is doing well. And his player has a pretty good prognosis with that new kidney.

CHETRY: Yes, a wonderful story. And, you know, you can tell. I mean, throughout his life, the way he's lived his life, practices what he preaches for sure.

HOLMES: Well, still coming up this morning, we have our Reynolds Wolf. He is taking a look at some weather that's going to go back to feeling like winter once again in certain parts of the country. He'll be up in just a moment with the latest on your travel forecast.

CHETRY: And how some old letters may help solve the mystery of Amelia Earhart's disappearance.

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CHETRY: Good morning, Statue of Liberty. What a beautiful shot of Liberty Island this morning, New York Harbor where right now it's 24 degrees, but, a little bit later, we're going up to a high of 41 degrees. Perhaps, perhaps spring's around the corner.

HOLMES: That's a big deal, right? Forty-one degrees here.

CHETRY: I'm happy with it. It's been really cold, and the winds made it feel much colder.

HOLMES: So many people for so many years have been fascinated with the story of Amelia Earhart, and would you believe now that snail mail could unlock the secret of her disappearance? Forensic scientists plan to steam open old letters that were written by Amelia Earhart, the aviator. They're going to extract DNA samples from her saliva that was left when she licked those envelopes.

They plan to then compare that to a bone fragment that was found in remote south pacific island, and maybe, this could help solve the mystery. She disappeared back in 1937 in an attempt to fly around the world. Her body was never found.

CHETRY: It's 48 minutes past the hour right now. Time for us to get a check of this morning's weather headlines. We have Reynolds Wolf in the Extreme Weather Center for us this morning. How you doing?

WOLF: I'm doing great. How are you guys doing? You doing all right?

HOLMES: Doing all right.

WOLF: Hey, you know, you've got some good weather up in New York. You know, it's a little bit on the cool side, little bit of mild side in parts of the nation. It's been downright hot all things consider for parts of the southeast, especially in Ft. Lauderdale. Well above normal. I don't want to say (ph) high. We're talking three-degree shy of 90 there in Augusta, Georgia, 83 or 82 in Tallahassee, also some 80s in Columbia, South Carolina and St. Simons Island.

Now, what we can also expect for today is basically the same scenario. Southeast, Gulf Coast, relatively warm, 80 degrees possible in Miami. Check out Miami. Look at that. Eighty in Tampa, 43 back in New York, as you guys are talking about, some 50s in Kansas City, 39 degrees in Salt Lake City, and 37 in Seattle. Now, one thing is interesting about parts of the pacific northwest, not only you have some 30s, but when you get up to around 5,000 feet, you can see the snow beginning to pile up especially in parts of the cascades where we have this very intense winter storm that's going to be developing.

And also, some of the low-lying areas outside of Seattle. You can see anywhere from six to 10 inches of snowfall, but in back towards the east we go some lake effect snowfall can be expected to the central and Western Great Lakes, but I want you to keep a really sharp eye on parts of the southeast because we're seeing an atmosphere set-up that could parlay into some severe weather by tomorrow, midday, maybe even into the afternoon as we have that moisture that continues to feed in from the Gulf of Mexico.

Very, very unstable air mass. And as this area of low pressure and that frontal boundary drives eastward, this could be the real catalyst that could give us the possibility of some strong thunderstorms, maybe some large hail, damaging winds, flash flooding conditions, and yes, perhaps even some tornadoes. So, we're going to keep a sharp eye on that for you.

In terms of your delays, out west you're going to see them possibly in Chicago, Milwaukee, maybe even into parts of Detroit too before the day is out, but for the eastern seaboard, all things considered, travel should be just fine this morning. Let's get it back to you in New York.

CHETRY: All right. Sounds good. Thanks, Reynolds.

WOLF: You bet, guys.

CHETRY: This is a flight from Tel Aviv, and all the airline offered (ph) was pork. The UK budget airline easyJet is now apologizing this morning to its Jewish customers. Passengers who donate pork for religious reasons were forced to go hungry for the four and a half hour right now, from Tel Aviv to London. All the airline offered ham melts or bacon baguettes. The airline says it actually loaded the wrong food canisters that promised kosher meals on all flights on that route.

HOLMES: We are just a few minutes away from your top stories.

Also, a story that got national attention, when a young wrestler, a boy, refused to wrestle a girl. He decided it was better to forfeit in the state championship tournament. He will be here with us live to explain why.

CHETRY: And what's your excuse for not working out? One amazing lady will put you to shame. A 95-year-old great-grandmother who isn't letting her age get in the way of her run.

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CHETRY: Time now for the poor (ph) Lindsay Lohan goes to court story. She's going to be back again. We'll see if her dress -- what she wears causes as much of a stir as it did last time. She wore that tight-fitting white dress that then sold out, you know, in all the stores. But, anyway, the question is will she actually go to jail? A judge would revoke or could revoke Lohan's probation. She is accused of stealing a necklace from a California jewelry store. The actress insists it was loaned to her. So, her lawyers are now working on a plea deal that would mean no jail time.

HOLMES: Well turn to now another piece of video here that Philadelphia prosecutors are looking into. This is a basketball practice at Holy Family University last month where a player says a coach intentionally -- look at it here. You see this? Coach internationally elbowed him during a drill. Now, that player got a bloody nose. He had scratches.

But now, he has gone to the police. The coach has been suspended. Other players now coming out, supporting the coach saying, hey, this is some accidental body contact during a drill.

CHETRY: What about kicking him after that? What about kicking him when he was already on the ground? That was accidental, too?

HOLMES: Sometimes, the drill gets a little rough. Basketball practice can be a little physical. If he's pushing his players, I don't know the man's methods, but they're looking into it.

CHETRY: Yes. Cross that off the list of things I'm going to let my son do now. No basketball, no football, no bike. I mean, what's he going to do?

HOLMES: Yes. What is he going to do? Jump rope?

CHETRY: I don't know. That's good. Good cardio.

Well, she's 95 years old -- he can run. No one will knock him over while he's running. Ida Keeling -- she's 83 pounds. She's 4 foot 6 inches tall, and Ida trains by running the stairs in her apartment, lifting weights, and riding a bike. She ran 60 meters in 29.86 seconds at a race in New York City. She is also the fastest sprinter for a woman in her age group.

(BEGIN VIDEO CLIP)

IDA KEELING, WORLD'S FASTEST 95-YEAR-OLD: After it was all over, I felt so uplifted and relieved. I said, this is what I need.

(END VIDEO CLIP)

CHETRY: Well, the great grandmother, again, 95 years old, did not run her first 5-k until she was in her 60s. She said she wants to live at least until 108.

HOLMES: Wow!

CHETRY: So, there she is getting ready to jump rope.

HOLMES: Nobody's going to knock granny down while she's running or jumping rope or playing basketball.

Quick break here on this AMERICAN MORNING. Your top stories coming up after the break.

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