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American Morning
Setback at Japan Nuke Plant, Radiation in Water and Food Beverages; Japan Tech Supply Shortage; AT&T to Buy T-Mobile for $39 Billion; Trend: Paying Cash for Houses
Aired March 21, 2011 - 07:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KIRAN CHETRY, CNN ANCHOR: Happening now. War in Libya. A building in Gadhafi's compound severely damaged by coalition missiles. We're live on the ground. The latest on this AMERICAN MORNING.
And good morning to you. Glad you're with us. It is Monday, March 21st, just a day until spring. A lot going on this morning. Welcome to AMERICAN MORNING.
ALI VELSHI, CNN ANCHOR: Some parts of the country doesn't feel like spring just yet. Good morning. Coming up this hour, the crisis in Japan worsens. New safety concerns. Workers are evacuated again from a reactor. New signs of smoke coming in from two of those reactors. Also, looking into the safety of the food supply in Japan and coming out of Japan. There's word that the radiation may have spread. Our Elizabeth Cohen is on that this morning.
CHRISTINE ROMANS, CNN ANCHOR: Also ahead this hour, big news in the business world this morning, the possible merger of AT&T and T-Mobile ahead. We're going to tell you whether your bill will go up or down and when T-Mobile customers can get hold an iPhone.
CHETRY: All right. And we'll also head across the pond. We're going to get the very latest on the royal wedding, and we'll tell you what some are saying Kate and Will have chosen as their theme for their wedding reception. Hopefully you'll like the '80s if you're going to dance at their wedding. All of those stories coming up in the next hour.
VELSHI\: Up first, the weekend assault on Libya. It was so fierce, so precise. Moammar Gadhafi's air defense system is all but crippled this morning. A four-story building in his compound is also severely damaged. Since Saturday a barrage of Tomahawk cruise missiles have hit Libya, more than 120 of them.
Our Nic Robertson is live with the latest on the front lines in Tripoli, a place that has been subject to a lot of missiles this weekend. Good morning, Nic. What's the situation on the ground as you know it?
NIC ROBERTSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: Ali, it's been pretty quiet here for the last 12 hours or so, occasional bursts of anti-aircraft gunfire. But the huge explosions we heard last night and we are taken to a building inside Moammar Gadhafi's complex grounds. It's an area that had several square miles and we were taken to a four-story building and it had two holes punched in the roof of the building. It was a heavy, concrete building.
We were told not only by government officials but also a couple of journalists who visited this building before that it's a building that Gadhafi uses for guests that he's about to meet to wait to meet him in a nearby tent. Government officials told us no one was injured in this strike. They did tell us that many families live in this large palace complex area.
Government officials also said what is happening here? Because this is what they said -- they were quoting a spokesman saying his compound wouldn't be targeted. And here they're saying it clearly has been targeted. So what we were hearing from officials here is surprise it had been targeted and assume this was meant to degrade their morale.
VELSHI: Nic Robertson is in Tripoli where a lot of those missiles have been targeting. Thanks, Nic.
CHETRY: There's certainly a lot of coalition power in the Mediterranean. There are two guided missile destroyers along with two attack submarines and a guided missile sub. All of them are in position to launch these Tomahawk cruise missiles at Gadhafi targets in Libya.
But defense chief Robert Gates says it will not be long until the U.S. military goes from a lead role to a support role.
(BEGIN VIDEO CLIP)
ROBERT GATES, U.S. DEFENSE SECRETARY: We expect that in a matter of days to be able to turn over the primary responsibility to others. We will continue to support the coalition. We'll be a member of the coalition. We will have a military role in the coalition. But we will not have the preeminent role.
(END VIDEO CLIP)
CHETRY: Chris Lawrence is live at the Pentagon. You're getting new reaction from the administration about that attack on Gadhafi's compound. What are they saying this morning?
CHRIS LAWRENCE, CNN PENTAGON CORRESPONDENT: Exactly, Kiran. I spoke with a coalition official who said the compound was hit. He confirmed that. He said it was targeted because of command in control capabilities that Gadhafi has there. In other words, they're trying to cut off his ability to be able to communicate and direct some of his forces.
He says it was not targeting Gadhafi himself. In fact, he said we're not even sure where he is. It wasn't a personal attack on him, but we feel it's a legitimate target because he does have these command and control abilities out of that place.
Let's take you back a little bit to tell you what led up to that strike last night. This all started with Tomahawk missiles flying from U.S. and British ships on Saturday. They fired from the Mediterranean Sea for one reason. That's because the first target was Colonel Gadhafi's long-range ballistic missiles. Those have a range of 150 to 180 miles offshore. And so those were the first targets and that's why the coalition, after the French jets did an initial run, that's why they stayed back on the ship and bombed those missile launchers first.
Then on Sunday, you saw more of the fighter jets, b-2 bombers, harrier planes all on a massive run through Libya pounding his targets. At one point they even hit some of his infantry near Benghazi, driving his forces back from Benghazi. And now at this point Pentagon officials say they will be able to start patrolling the skies over Libya.
(BEGIN VIDEO CLIP)
VICE ADMIRAL BILL GORTNEY, DIRECTOR, U.S. JOINT STAFF: We now have the capability to patrol the air space over Libya and we're doing just that, shifting to a more consistent and persistent air presence. As Admiral Mullen reported this morning, the no-fly zone is effectively in place.
(END VIDEO CLIP)
LAWRENCE: And again, the U.S. expects to transfer control of this operation to its allies in the next few days. Kiran?
CHETRY: Chris Lawrence for us at the Pentagon, a developing situation. We'll continue to follow it with you. Thanks so much.
Meantime, the situation in Libya is happening but the president is continuing his first official trip through South America. After his weekend in Brazil, he'll be making a stop in Chile today followed by a visit with leaders in El Salvador before he heads home Wednesday.
The president's plan is to highlight economic issues in Brazil. It was overshadowed, though, by the military action announcement in Libya, though, during his speech to thousands of Brazilians, the president used the situation to connect brazil's past to the future.
(BEGIN VIDEO CLIP)
BARACK OBAMA, (D) PRESIDENT OF THE UNITED STATES: But for our two nations, for the United States and Brazil, two nations who have struggled over many generations to perfect our own democracies, the United States and Brazil know that the future of the Arab world will be determined by its people.
(END VIDEO CLIP)
CHETRY: And the entire first family is along for the trip, as well, with Michelle's schedule, Michelle Obama's schedule packed with events. She's promoting education for the millions of young people in South America.
ROMANS: OK, guys, a huge deal in the wireless industry, one that affects about anybody with a mobile phone in their pocket. AT&T buying T-Mobile from its German owners for an estimated $39 billion in cash and stock. This deal first needs federal approval, don't forget, but it would bring AT&T 34 million new customers giving the company a big boost with the rivalry with Verizon.
AT&T and T-Mobile, there you go, number two and number four carriers would combine for 40 percent of the market share overtaking Verizon at 31 percent.
What's good about this deal, high-speed mobile broadband would likely improve in terms of quality and coverage. That's right, your coverage and quality of coverage would improve. But the bad news, the cost of that service probably won't come down very fast. Why? Well, less competition. Bad too for cable companies will have a tough time competing with mobile broadband.
T-Mobile customers probably want to know this. Can I get an iPhone? Yes, probably, after this deal closes, T-Mobile users will have access to AT&T's lineup of high-end smartphones, which includes more android phones, as well. There you go.
VELSHI: After that deal closes, that could be a year.
ROMANS: Oh, yes.
VELSHI: We're not talking about days or weeks --
ROMANS: And you've got the federal approval, which is going to be key because you've had all of those years taking them apart --
VELSHI: We've heard from congressmen and senators who are putting out press releases to say let's really look at this, make sure this is good for consumers. But prices of these services have been going down over the last few years.
ROMANS: If you think you're going to get an iPhone right away, the company was very clear, until the deal closes, you won't see changes.
CHETRY: And the other question is, is it good for consumers because of the whole infrastructure? Are we going to see more towers and Wi- Fi?
VELSHI: And they say yes. You're a little out of luck for your search for the new iPad. They're going to take longer.
KING: I heard. I heard. I've given up hope. The first generation is just fine.
VELSHI: There you go.
(LAUGHTER)
Election day violence in Haiti. Two people were shot and killed as two people cast their votes in a crucial presidential runoff yesterday. Voters chose between two candidates, the former first lady and singer Marshall Martelli. Results will be released on April the 16th. Wow, that's a long time. In addition, Wyclef Jean, who is not running for president, was shot in the hand. He's said to be doing well after going to a hospital in Port-au-Prince. He wouldn't say whether he thought he was a target or not.
California hit by some powerful weekend storms. Residents in the Bay Area dealing with fallen trees, power lines. Workers right now trying to restore power to thousands who lost it. Heavy rain in the Los Angeles area forced dozens of evacuations as mudslides threatened homes. The rain and cold plagued the Los Angeles marathon on Sunday. Hundreds of runners were examined for hypothermia.
(WEATHER BREAK)
ROMANS: OK, there are 1,900 people are invited to watch the royals get hitched. And Kate Middleton has a special request for each of them. We'll tell you what it is.
CHETRY: And people are looking to buy the latest iPad, they should keep looking because supplies are running out. The crisis in Japan could actually affect production of cell phones, laptops, and other gadgets, but for how often and when? We'll explain, coming up.
VELSHI: And the Japanese government is taking action over concerns that radiation has contaminated the food supply quite a distance from those nuclear reactors. There are new developments from that troubled nuclear plant. Smoke is rising, workers have been evacuated. It's 11 minutes after the hour. You're watching "American Morning."
(COMMERCIAL BREAK)
ROMANS: And welcome back to "American Morning." A possible setback for engineers trying to prevent a nuclear catastrophe in Japan. Workers in perhaps the most volatile reactor right now, reactor number three, had to be evacuated after smoke was spotted at the damaged nuclear power plant. And officials now say smoke is rising from reactor number two, as well.
Let's get the latest from Anna Coren live in Tokyo. Tell us what is happening with these two reactors, and what's the new concern this morning?
ANNA COREN, CNN INTERNATIONAL CORRESPONDENT: We just got confirmation in the last few minutes that from TepCo, the power company that owns the Fukushima Daiichi power plant that smoke is, in fact, rising from reactor two. They had earlier confirmed that smoke was coming from reactor three. That, of course, is the problem reactor, the one that has had that explosion, the fire, and earlier reports of smoke over the last coming days.
It was also where we saw the build-up of pressure and they thought they'd have to release that pressure yesterday. That was until levels maintained or just leveled out, I guess. But the problem with this smoke is that we don't know what is in it or what is the cause of the smoke. Of course, the fear is that it actually contains radioactive material. We know that the workers at reactor three, they have been evacuated from that site. They moved to the main building. There are some 430 workers, however, who are working around the clock trying to contain this situation.
ROMANS: So, Anna, now there are two threats to the nuclear part of this disaster for Japan. There is the reactor we've been watching the development so carefully and closely. And now, there's questions about the safety of the food and water around the plant. Radioactivity found, radiation found actually in some of the food. Tell us about those concerns this morning.
COREN: I know, it just doesn't seem to end, does it? We got reports yesterday that high levels of radiation had been detected in both spinach and milk, in both those products. And by last night, the government came out and said that they would ban both of those products and the shipment of both of those products.
Some of those items have been found, contaminated items have been found within the Fukushima Prefecture around the nuclear power plant. However, others have been found further south. So that is of concern. We also know that high iodine levels have been found in the drinking water. So the government has told residents not to drink it. And that is the safety warning that is going out at the moment.
ROMANS: All right. Anna Coren, thank you so much. Live in Japan. Thank you.
CHETRY: And the crisis in Japan could affect production of cell phones and other gadgets that we've all come to rely on. Factories in Japan are having a shutdown. Some of them haven't powered back up because of the outages and the earthquake damage and the resulting tsunami. Tech companies are then being hit by supply shortages.
A new reports say that Apple could have trouble sourcing key parts for the iPad2, and Sony says it's facing problems sourcing parts for its mobile phones. Sony has shut down five factories in Japan. Toshiba and Hitachi have each shut down one of their factories. Now this supply shortage could also affect makers of computers, phones, satellite navigation systems.
Coming up at 8:00, we're going to be speaking with a technology expert about what challenges you might expect. It's interesting, though, because things are at least slightly different than they used to be. For a short time in the '90s, Japan was the only place that manufactured some of these key parts.
ROMANS: Right.
VELSHI: Right.
CHETRY: Now it's moved to China.
VELSHI: They're still a leader in semiconductors.
CHETRY: Right.
ROMANS: Oh, yes. VELSHI: And here's the thing about semiconductor factories. There could be a tiny little tremor, not an earthquake.
ROMANS: Right.
VELSHI: And they have to recalibrate all their machinery because semiconductors are small. So now, there's been 600 aftershocks in Japan.
ROMANS: Right.
VELSHI: They couldn't even get back to recalibrating and starting manufacture.
ROMANS: You also have just-in-time manufacturing.
VELSHI: That's right.
ROMANS: Something that didn't exist 20 or 25 years ago. So you have a global supply chain that only has a little bit on hand --
VELSHI: Right.
ROMANS: -- for production because of cheaper and easier and faster --
CHETRY: Right.
VELSHI: We used to (INAUDIBLE) house these things.
ROMANS: Right. You don't do that anymore. And so that means as these disruptions have that much bigger of an impact even if the source isn't as big anymore.
VELSHI: We're doing this all to make you feel a little bit because you've definitely developed an anxiety about the iPad2, right?
CHETRY: Well, the other thing interesting thing is Apple is first in line. Right? Because they're such a big buyer, they sort of protect their little trade secret.
VELSHI: So you're still helping?
CHETRY: Yes. So, I mean, maybe at least if some stuff's cranking out, it will be going to Apple. We'll see.
VELSHI: All right. Well, it's not just the manufacturing obviously.
ROMANS: Right.
VELSHI: As Anna was just talking to Christine about, there are concerns about food supply in Japan. Japan is cracking down amid fears of radiation in spinach and milk. Now should Americans be worried about this? We're going to talk to Elizabeth Cohen about it straight ahead on AMERICAN MORNING.
(COMMERCIAL BREAK) VELSHI: Welcome back to AMERICAN MORNING. No gift registry for the soon-to-be-wed royal couple. Just a request --
ROMANS: Whoa, that's a relief. I was going to come empty handed.
VELSHI: But the news of what you should get them comes with a startling revelation from Kate Middleton, the bride. She says that she was forced to change schools because she was bullied. Kate decided to include the charity Beat Bullying on a list of causes that she and Prince William picked out in lieu of wedding gifts. They picked out 26 charitable organizations for their 1,900 guests to choose from.
CHETRY: Nice.
VELSHI: That's a lot easier for everyone.
CHETRY: Yes.
ROMANS: That's hard to imagine. You know, but she's such a good role model for young children --
VELSHI: Yes.
ROMANS: -- especially girls, who might be picked on in school.
Look, I mean --
VELSHI: If it happens to her, it can happen to anybody.
ROMANS: She could be queen of England someday.
CHETRY: The ultimate Cinderella story. You can go --
VELSHI: Yes.
ROMANS: The ultimate --
VELSHI: I hope she keeps a list of everyone who bullied her.
CHETRY: Yes, I know. You have to move on, though.
VELSHI: Yes.
CHETRY: I still remember the names, of course, of all the girls who bullied me.
Well, it looks like after the celebration on April 29th, the honeymooners are going to head down under, at least --
VELSHI: Do we know that?
CHETRY: Well, this is what happened.
VELSHI: Or they're hinting at it. CHETRY: William was down there on a royal visit in Australia. And when he welcomed the crowd in Cairns, he said, you know, he was visiting them because they were affected by last month's cyclone.
VELSHI: Right.
CHETRY: Well, he said, oh, I prefer the weather to the grayer skies back home and then he said, maybe I'll see you guys again soon for the honeymoon, you know, and saying --
VELSHI: Did he imply for the honeymoon?
CHETRY: It seemed to imply for the honeymoon --
VELSHI: Right.
CHETRY: -- saying that he always wanted to scuba dive in the Great Barrier Reefs.
VELSHI: If I could be your prince, you can just do that.
ROMANS: I think you can.
CHETRY: Yes, I mean, maybe you don't have time between all your royal commitments, you know. You've got to pencil and scuba dive.
ROMANS: You know, I wish we had music for this. I'm going to sing it in my head.
The reception is going to have the royals going back in time. I wish Ali could dance to this. The music choices for the dinner dance are out. And Kate's number one pick, the '70s Swedish disco sensation ABBA. ABBA. Prince William goes for the big hair decade, the '80s, of course. He has requested Duran Duran, Culture Club and a dose of hip hop from his favorite British artist Dizzee Rascal.
VELSHI: Dizzee, nice.
ROMANS: From the dress to the guests, you can watch the royal wedding unfold right here on AMERICAN MORNING. And we're going to have live coverage from London with our own Kiran Chetry.
CHETRY: What am I going to wear?
ROMANS: Don't wear white. Do not wear white.
CHETRY: I won't.
VELSHI: AT&T we've been telling you about just this morning is set to become the largest mobile carrier in the country. The wireless giant has purchased T-Mobile for $39 billion. Just ahead, we're going to talk about the details of what this acquisition means for customers, what it means for the reception you're going to get, what it means for the types of phones you're going to be able to get, what it means for your bills. CHETRY: We're also following the latest from Japan right now. New word that smoke is coming out of one of the reactors. They had to force some of the workers to evacuate because of that. There are also concerns about the food safety issues. They're stopping milk and spinach shipments from certain areas because of concerns over radiation. What you need to know amid the concerns of contamination from a nuclear disaster.
Twenty-four minutes past the hour. We'll be right back.
(COMMERCIAL BREAK)
ROMANS: OK. Earlier this hour, we told you that AT&T is now set to become the largest mobile carrier in the nation. It's agreed to purchase T-Mobile USA for $39 billion. One of the largest transactions in recent years. Stephanie Elam has been following it closely. We saw the -- you know, Ma Bell (ph) company --
VELSHI: We separated them all.
ROMANS: And now they're putting them back together.
VELSHI: Putting them back together.
STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: And everybody said that that would eventually happen.
VELSHI: Yes.
ELAM: And we've seen this happen over and over again. And this one, though, a lot of people are wondering will this actually get the regulatory approval? Because sure, they can say they're going to merge. They can say we're going to take over this other company. But really, the United States Regulatory Commission, they're going to take a look at this. And they're going to say, is this a good idea? And is this actually going to benefit consumers? And that's what they're going to want to see here.
Take a look at the statement we have from Senator John Rockefeller. And listen to what he's saying here. He's saying wireless services are becoming more and more important to the way we communicate. So it's absolutely essential that both the Department of Justice and the FCC leave no stone unturned in determining what the impact of this combination is on the American people. He's also the chairman of the U.S. Senate Committee on Commerce, Science and Transportation. And overall, what the FCC is going to be looking at here is whether or not this is just going to truncate competition so much that it actually makes it more expensive.
You're probably not going to see prices come down. As you heard Christine talking about earlier, you're not going to see these things come down.
VELSHI: Right.
ELAM: What they are hoping at AT&T is just the fact that this will actually increase their service into rural areas and make it better.
VELSHI: Yes.
ELAM: But there's no guarantee.
VELSHI: That will help them on the regulatory --
ELAM: Right, but there's no guarantee that this is going to happen.
VELSHI: Right.
ROMANS: But your cell phone bill has gotten cheaper over the past decade.
VELSHI: Yes.
ELAM: Yes.
ROMANS: And that's what AT&T has argued that with more consolidation, your bill has gotten cheaper.
VELSHI: Right.
So this may not make things cheaper, but the long-term trend has been cheaper.
ELAM: Has been cheaper. Right. So that's what you're going to see and we'll see if other companies follow suit with other mergers.
Anyway, hey, let's take a look at the markets and what they did on Friday. I was not here. I was in California. But look at that. Even without me being around, they still went up. Yipee.
VELSHI: Even without you.
VELSHI: So look at that, the Dow up there 83 points, 11,859. Nasdaq falling --
VELSHI: You left some good market karma behind you.
ELAM: I just try -- you know, try to rub it on.
VELSHI: Yes, good.
ELAM: You never know.
ROMANS: We got oil up this morning, so we'll watch and see if that's going to be --
VELSHI: That often has a negative effect.
ROMANS: Yes, we'll watch it.
ELAM: But overseas has been rallying today.
VELSHI: Yes. ELAM: So, you know, a lot of times how that goes, that's what happens.
VELSHI: Right. We'll watch it closely.
ROMANS: Stephanie Elam -- thanks, Stephanie.
ELAM: Sure.
VELSHI: Thanks, Stephanie.
All right. Twenty-nine minutes after the hour. Time for your top stories.
Coalition forces striking Libya over the weekend. Using cruise missiles and bombing runs to cripple Moammar Gadhafi's air defenses and severely damage a building in his compound. The U.S. said Gadhafi was not targeted but his compound was because it also serves as a military installation.
The uprising in Syria is escalating. Thousands of people demonstrated in the streets over the weekend in the wake of Friday's attack against protesters by government security forces. Five people died in that clash. That's going to be one to watch very closely. And smoke now spotted coming from the two damaged reactors at Japan's Fukushima Daiichi power station.
That's the one that's been the source of all this trouble. Engineers are struggling to prevent a meltdown after a devastating earthquake and tsunami earlier this month. This morning, Japan is imposing food restrictions on areas near the damaged nuclear plant, after high levels of radiation were found in milk and spinach some distance from the plant.
CHETRY: That is scary. Japan is saying, though, that it does not actually pose any health risk even though those levels were elevated. But of course, whenever you're talking about concerns about contamination and your food, it gets a lot of people worried, understandably. So there is a lot of fear of what it could mean, even here in the United States about our food supply. So we wanted to get the facts with our senior medical correspondent Elizabeth Cohen. She joins us this morning with more.
Good to see you in person, by the way.
ELIZABETH COHEN, CNN SENIOR MEDICAL CORRESPONDENT: Thank you.
CHETRY: You hear about this, the milk and spinach situation there. It makes you very scared and it also makes us wonder, will eventually - because the situation in Japan has not wrapped up, will our food supply be affected?
COHEN: Right. As of now, we don't know if it's been affected on the west coast because we haven't measured it. So we asked experts, what do you think? Is there radiation in food from the west coast because radiation from Japan has hit the west coast. And these experts we talked to, Kiran, and we talked to a lot of them, unequivocally said "no, we do not think there's any problem with food on the west coast."
Because the amounts of radiation that have hit the west coast from Japan are so teeny, tiny that the chances that it would get into food in any meaningful amount are infinitesimally small. So the experts we talked to say they are really not concerned about this at all.
CHETRY: A couple of other questions, what about imports? I mean, obviously Japan's not exporting any of this right now, but I mean, it does make you worry. I mean, how good are the safeguards in place to make sure that eventually it doesn't make its way somewhere?
COHEN: Right. The U.S. does import a very small amounts of food from Japan. But we do import food from Japan. And right now they're going to check all of it for radiation. In the past, they haven't checked every single morsel. But now we're told that they will check all of it for radiation. But they really aren't expecting to find tons of radiation in any amount, in any particular kind of food from Japan. And we asked some experts, would you eat food from Japan? And they said, "yes, they would." They said they're really not concerned about it. If there is a small amount of radiation, it is so much smaller than what you would get from any other source of radiation, they're not concerned.
CHETRY: It strikes fear in your heart.
COHEN: Absolutely.
CHETRY: You're thinking if I can't trust the food supply, if I can't trust the water that's coming out of the tap. I mean, it's scary.
COHEN: Well, that's in Japan. I think we need to make a distinction. In Japan, there are real concerns and there are people who should not be drinking the milk or drinking the water or eating certain vegetables. We're not Japan. We're thousands and thousands of miles away. So the small amounts of radiation, the tiny amounts of radiation that have hit us are not a concern. I mean, experts have said that over and over again. It's a huge -
CHETRY: There's radiation in our everyday lives all the time.
COHEN: There is radiation in our lives all the time. Right now, you and I are getting hit by radiation. And the amount that is hitting the west coast is 100,000 times weaker than what you experience every day anyhow. So that's why the experts we've talked to are not concerned at all.
CHETRY: Well, I feel better after talking to you.
COHEN: Oh, good. I'm glad. That was my goal.
CHETRY: Elizabeth Cohen this morning, thanks so much.
COHEN: Thanks.
CHETRY: Well, learn more about the relief effort in Japan and how you can make a difference. Visit our "Impact Your World" page. Cnn.com/impact.
We're going to take a quick break. It's 34 minutes past the hour, "American Morning" will be right back.
(COMMERCIAL BREAK)
CHETRY: 37 minutes past the hour. It's day three of "Operation: Odyssey Dawn" as it - "Odyssey Dawn" as it's called. It's the attacks on Libya right now trying to dismantle their air defense system. This is a four-story building in the presidential compound that was hit. It's already torn apart. Other parts of the facility because of Tomahawk missiles.
Anyway, it all continues right now. And we want to get an update on what's going on. Alec Fraser, retired U.S. Navy captain and president of Turner Properties joins me this morning. Thanks so much for being with us, captain.
CAPT. ALEC FRASER (RET.), U.S. NAVY: Good morning. It's nice to be here.
CHETRY: So we're talking about "Operation Dawn," as they're calling it. How much progress has been made by coalition forces on the stated goal, which was to render Gadhafi's air force and his ability to strike his own people useless?
FRASER: Well, there's been a lot of discussion over the last 24 hours about casualties, collateral damage. And I think the first thing to remember is that in order to do the no-fly zone, casualties to pilots that are flying the coalition aircraft is just as important. And so the Tomahawk strikes that went in early, taking out the radars the command and control facilities, the surface to air missiles made sure that we did not have this time, that picture that you see of the iron fists crushing a model airplane that says USA on the side. That did not happen.
Once the suppressions of the defenses were done, then you could send in manned aircraft that stopped the convoy that's heading towards Benghazi. That was very important. Save casualties on the civilian side and on the pilots side.
CHETRY: In fact, just to give people a sense of how careful allied forces are trying to be in this. The British Ministry of Defense said it actually halted a mission to attack a target in Libya because they received information that civilians were in the area. This just crossed within the last hour, they said, that decision to do that underlines U.K.'s commitment to protect civilians. I mean, as part of this also keeping the Libyan people on the side of the coalition of what's going on right now?
FRASER: Well, I think there are two things. One is that people are realizing that the fact that the accuracy of Tomahawk missiles and the accuracy of the manned aircraft are so good that they're safe. It's clear that they're not being part of the targeted and the targets, and that people are - can feel safer because of what is being targeted. The other thing is that if I were a part of the command and control group for Gadhafi, I would not have slept well last night. As a matter of fact, I wouldn't have slept inside. If you can put two Tomahawk missiles right through the middle of a building in a compound. This was targeting the compound, it's a building, two missiles through the top. Then they can go anywhere. If I were in a building, and I was part of the command and control structure I would have not have slept inside last night.
CHETRY: Are coalition forces targeting Gadhafi? I mean, would they not be upset to see him killed in an air strike?
FRASER: Well, I think has been said along the way that it is the purpose of the no-fly zone and anything that helps the no-fly zone. And that's the command and control structure. It is not Gadhafi. If he happens to be someplace where they're striking, then that's his problem.
CHETRY: What is the goal? Admiral Mike Mullen says it's uncertain how it will end and when. He seemed to indicate that it would be days and weeks, not months or so forth but what is the U.S. goal right now?
FRASER: Well, I can't speak for the government, but I would think that the goal is for the no-fly zone to provide the opportunity for the rebels to be able to utilize the best resources and so that Libyans are controlling their own destiny.
CHETRY: The other question is whether or not what Libya looks like in the weeks and months to come. It includes Gadhafi still in power. Admiral Mike Mullen also said there's a chance he could stay. I mean, it's within the, you know, the hands of the Libyan people. Do you see that? And there was some criticism of that. I think it was Senator Lieberman who said that would be "if we said Gadhafi must go and he stays, that actually makes us look weak in the eyes of the world."
FRASER: Well, I think that the military effort so far is what has been required to do the no-fly zone, which everyone has agreed to do. How far that goes out into the future is yet to be determined. A lot of that has to do with the command and control. The "U.S. Mt. Whitney" that's off the coast of Libya right now was a ship originally designed for a D-Day, Normandy style marine invade the beach type of operation.
Today it's a ship that has mass command and control capabilities and able to take together all of the coalition nations, various aircraft, various times and put them into a manner that they can be able to do it safely and be able to allow the potential for the development as it comes out in Libya. As you say how it unfolds. But at least it's been done safely to start with.
CHETRY: Some Mideast analysts have said that there is a risk this no- fly zone can essentially become cover for a widening civil war in Libya. I mean, what do we know about the rebel forces? Who they are, and could they ultimately control the country in a way that people who are seeking freedom in Libya would be satisfied with? FRASER: Well, I would think that the people that are able to see that the success of the rebels so far. Plus the folks that are sort of sitting on the fence or being able not to go out in the street and are hiding will see that who is going to win the battle is who they're going to go with. They've got to be very careful here. If they side with, you know, outside of Gadhafi's world, they could get in trouble if he is able to follow through. But if the success and the backing of the coalition shows that there is a world support for the rebels, I think that will make a big difference in which way people vote.
CHETRY: Alec Fraser, retired U.S. Navy captain and president of Turner Properties, great to get your insight this morning. Good talking to you.
FRASER: And good morning. Glad to be here.
CHETRY: Christine.
ROMANS: All right. Kiran, still to come this morning, a stormy start to the workweek and the commute in the east. We're Even hearing snow is back in the forecast. Reynolds is going to have the morning's forecast right after the break.
We're also going to have a story about cash buyers. People buying houses, Ali, with cash.
VELSHI: Unbelievable.
ROMANS: You'd be surprised the number of first-time home buyers who have saved up money from their grandma and grandpa and all their college money and they're buying with cash.
VELSHI: All right. 43 minutes after the hour.
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Most of the experts said they didn't even belong in the tournament. But the Virginia commonwealth rams are getting the last laugh, Advancing to the Sweet 16 in the NCAA men's basketball championship with a stunning 94-76 rout of Purdue yesterday. And now won three games in five days knocking out USC and Georgetown, too. The Rams' first appearance ever in the Sweet 16. They'll play Florida State on Friday in San Antonio.
CHETRY: What's your alma mater?
VELSHI: I went to school in Canada.
CHETRY: Oh, OK. So your team will never make it.
VELSHI: That's correct.
(LAUGHTER)
CHETRY: Never -- how about you, Christine?
ROMANS: Iowa State.
CHETRY: I'm Maryland.
VELSHI: I knew that. You just always bring up the Maryland thing.
CHETRY: Well, oh, yes, I know. Because there's a few people we have on the show that are in Maryland. You know, our boss of all bosses here was from Maryland.
ROMANS: My dad went to Maryland. My dad went to Maryland. My dad went to a year of high school, too, not at the same time -- Goldie Hawn, of all people. Interesting people from Maryland.
CHETRY: I'm sorry, Ali, about your team. Good luck next year.
ROMANS: Let's talk about the moon. Because I don't know if you guys noticed over the weekend, the moon was amazing. A full moon on Saturday night. They're calling it the super moon. It was the largest in 18 years.
Some incredible pictures from our iReporters. You guys, thanks for sending those in. If you've got any more, keep them coming because they're fascinating. I saw it in person live, but you know, the biggest, best full moon in 18 years is something to behold.
CHETRY: Love it. Beautiful. It looks like you could reach out and touch it, it was so big.
Forty-eight minutes past the hour right now. Let's get a check of this morning's national weather forecast.
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VELSHI: Reynolds, are you as taken by these laughing babies as I am I cannot get enough of this stuff.
REYNOLDS WOLF, AMS METEOROLOGIST: It really is -- it's very infectious.
(CROSSTALK) WOLF: It's pure joy.
VELSHI: I'm going to give you another one so watch this with us. A five and a half month-old baby named Emerson has become a web sensation, not just because a five and a half year-old (sic) is called Emerson.
Watch as he goes from absolute terror as his mom blows his (sic) nose to total delight.
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VELSHI: I love the eTrade baby commercials.
ROMANS: Yes, those are cute.
CHETRY: The third time he wasn't terrified.
VELSHI: He just laughed, he knows it's coming.
All right. So seven million people have watched that on YouTube, too. I'm a sucker for babies laughing. I love the eTrade baby commercials.
This reminds us, though, of that tickle -- that baby who was completely tickled by the sound of his dad ripping up job rejection letters. I'm quite certain the kid didn't know they were job reaction letters. Who thought this could be so funny?
Check this out.
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CHETRY: Christine pointed out, it looks like the same baby. I wonder if we're being tricked.
VELSHI: You people are cynical. You people are so cynical.
CHETRY: I'm just teasing.
ROMANS: Yes, he's a very cute baby with a very cute laugh.
VELSHI: So cute.
CHETRY: All right. Well, you top stories coming up. Also, a new cell phone giant. AT&T is getting set to buy T-Mobile. This is a $39 billion deal if it goes through. So, what if you just switched to Verizon for an iPhone with more bars? Is that a mistake now? We're going to get some answers from a certified techie.
AMERICAN MORNING will be right back. Fifty-two minutes past the hour.
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ROMANS: Welcome back to AMERICAN MORNING. We turn to a surprising trend in the battered housing market. An increasing number of people are paying with property with cash -- 100 percent cash. So what does this mean for the real estate market?
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ROMANS (voice-over): Marc Wurst and his fiance Mary Nappy (ph) are looking at their 26th house in their search for their first home.
MARC WURST, CASH BUYER: This is nice and big.
ROMANS: They'll be paying for it in cash taking advantage of the market's low housing prices.
WURST: This is a great time to buy houses because they are so much less than what they were at even four years ago. ROMANS: From coast to coast cash sales are up. According to the National Association of Realtors, 32 percent of all properties purchased in January were purchased with cash. That compares with 26 percent in January of last year.
Columbia University real estate professor Christopher Mayer.
CHRISTOPHER MAYER, PROFESSOR, COLUMBIA UNIVERSITY BUSINESS SCHOOL: I think the cash purchases in the market are really a function of where we are in the cycle, the challenge of getting financing, and what, you know, I think some people perceive as real opportunities to purchase property.
ROMANS: Many are investors who fix up condos and houses and then sell or rent them out. But for first-time home buyers like Marc and Mary, cash means not having to worry about loans and credit for a mortgage.
WURST: Big enough refrigerator. It gives you a distinct advantage over other buyers and can probably get you a discount on a house. I don't need 90 days to get a mortgage approval. It's cash.
ROMANS: And that may just help the battered real estate market get back on its feet.
MAYER: It's going to be a really slow road to picking up again. So I think people coming into the market and having confidence that we've hit a floor and they're willing to pay for properties with cash, is a net positive.
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ROMANS: Especially for foreclosed properties. Now, this couple used the money passed down from a grandmother. Others have saved for years. They were priced out of a sky-high real estate market, now they finally have a chance. Some are investors who do this over and over again. All of them taking advantage of some very, very low home prices right now.
Top stories coming your way right after this quick break.
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