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Defense Secretary in Kuwait Holding ISIS Talks; Road Rage Suspect Heads to Court; Who Took Home Oscar Gold?; O'Reilly Slams Former CBS Colleague; Soaring Stocks Not Helping Everyone

Aired February 23, 2015 - 10:30   ET

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

(COMMERCIAL BREAK)

CAROL COSTELLO, CNN ANCHOR: And good morning. I'm Carol Costello. Thank you so much for joining me.

Defense secretary Ash Carter is in Kuwait right now meeting with top generals and diplomats about the fight against ISIS. Now, this meeting comes on the heels of Carter's surprise trip to Afghanistan to meet with troops and government leaders there. Barbara Starr has more for you from the Pentagon. Good morning -- Barbara.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning -- Carol.

Well, Ash Carter just several days into being secretary of defense hitting the road to talk to troops overseas, talk to commanders and put his stamp on the Pentagon as all of these conflicts rage around the world.

His first stop was in Afghanistan -- and he's a little surprising there. He talked about maybe keeping some of those troops in Afghanistan a bit longer than planned to help with security there. That's one of the first pieces of news he made.

But then he's also now been asked about his philosophy of putting U.S. combat troops on the ground. I want you to have a listen to what he had to say.

(BEGIN VIDEO CLIP)

ASHTON CARTER, U.S. DEFENSE SECRETARY: Like any tool we use to complete the defeat of ISIL, I think we need to be convinced that any use of our forces is necessary, is going to be sufficient, that we've thought through not just the first step but the second step and the third step. Those are the things in respect to that question and every question that I'm given as secretary of defense about the use of force.

I want to make sure we thought everything through and that we have a plan that leads to success.

(END VIDEO CLIP)

STARR: Use of force -- very key words from the new secretary of defense; use of force against ISIS. You know, what he's talking about is somewhat of what's been talked about by the White House. If you're going to put combat boots on the ground there, are you going to make the situation better or could you make it worse? Are there those so-called second or third order effect that you may not realize at the beginning.

And that is part of what Ash Carter is doing in Kuwait today talking to all of his top commanders, ambassadors from the region, intelligence personnel. What is the situation with ISIS and what, if anything, is there new or additional that could be done, options that he could propose to President Obama -- Carol.

COSTELLO: All right. Barbara Starr reporting live from the Pentagon. Thanks so much.

The teenager charged in an alleged road rage incident in Las Vegas is expected in court at any moment now. 19-year-old Erich Nowsch is set to make his appearances on a number of charges including murder and attempted murder.

Nowsch is accused of gunning down Tammy Meyers in the driveway of her home following a confrontation that started with Meyers giving her daughter driving lessons. The mother of four and the suspect lived just a short walk apart and they knew one another.

Let's talk more about this confusing case. CNN legal analyst Paul Callan is with me in New York and criminal defense attorney Page Pate is in Atlanta. Welcome to both of you.

PAUL CALLAN, CNN LEGAL ANALYST: Good morning.

PAGE PATE, CRIMINAL DEFENSE ATTORNEY: Good morning.

COSTELLO: Good morning. So Paul, does this surprise you that Erich Nowsch has been charged with murder and attempted murder because we don't know all the details of what happened.

CALLAN: Well, I'm not surprised. Somebody is going to be charged in a case like this. I mean what's surprising about the case is that it turns out there seems to have been some kind of a relationship between the deceased Miss Meyers and the suspect.

The husband said that she was involved in counseling him and knew him and would talk to him at a local park. So at first it looked like a stranger road rage thing and now it's kind of there's some sort of relationship between the two. At least they know each other. So we'll have to see where it goes.

COSTELLO: Well -- and Page, the defense attorneys are saying -- they are wondering if there was a road rage incident at all.

PATE: Right. I think we've moved way past road rage at this point. Clearly there's a relationship between these folks. And I think what the defense is going to be looking for is can we have an opportunity to allege self-defense because clearly the victim in this case, her son, went looking for Mr. Nowsch. So if they're coming for him, if they're armed, Nevada has a no duty to retreat law, a stand your ground law and so I anticipate the defense will at least consider self-defense in this case.

COSTELLO: Yes. Because Paul according to a police report, one of the suspect's friends is saying, one of the Meyers brandished a gun first.

CALLAN: Yes. It's such a bizarre fact pattern. She's giving a driving lesson to her daughter in the school parking lot. Then she says as she was leaving, this is Miss Meyers the victim, all of a sudden a car aggressively pulled up next to them. The daughter honked and then the next thing we know she's going home, dropping off her daughter, picking up her son, Brandon, who has a gun. And they go looking then for the driver that aggressively came after them who turns out to be the suspect in the case who they know and then a shootout occurs at the house. So, you know, it's a bizarre case.

COSTELLO: And it certainly sounds like maybe a case of vigilante justice, Page?

PATE: Possibly. I think at this point it's too early to know exactly what happened. Obviously we have witnesses who I think have given us a different time line now than the police had initially. So there's going to be a lot more investigation before the case is eventually indicted, if it ever is, and goes to trial. So we've just seen the first glimpse of what I think the facts will eventually turn out to be.

COSTELLO: All right. Page pate and Paul Callan -- thanks to you both. I appreciate it.

CALLAN: Thank you.

PATE: Thank you.

COSTELLO: Still to come in the NEWSROOM, Bill O'Reilly is firing back and this time against his former colleagues at CBS. We'll talk about that next.

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COSTELLO: That's a wrap. "Birdman" cleans up on Hollywood's biggest night. The film taking home four Oscars including best picture. Host Neil Patrick Harris addressing social issues though right off the bat.

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NEIL PATRICK HARRIS, ACTOR: Welcome to the 87th Oscars. Tonight we honor Hollywood's best and whitest -- sorry, brightest.

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COSTELLO: Later he would take a brief break stripping down to his skivvies. There was a joke in there, I promise. Bowties and ball gowns aside, making a statement ultimately became the most fashionable choice. (BEGIN VIDEO CLIP)

PARTRICIA ARQUETTE, ACTRESS: We have fought for everybody else's equal rights. It's our time to have wage equality once and for all, and equal rights for women in the United States of America.

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COSTELLO: So who else took home Oscar gold? Stephanie Elam is on it.

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UNIDENTIFIED MALE: The Oscar goes to "Birdman".

STEPHANIE ELAM, CNN CORRESPONDENT: Alejandro Inarritu's "Birdman" soared over the competition taking the top prize of the night's best picture.

ALEJANDRO INARRITU, BEST DIRECTOR, "BIRDMAN": We are here. I don't know how that happened but it happened.

ELAM: "Birdman" about a fallen star fighting for success earned four Oscars including original screenplay and director. First time host, Neil Patrick Harris, got into the act recreating "Birdman's" famous underwear scene.

HARRIS: Acting is a noble profession.

ELAM: It was a night marked with passionate speeches about causes near to the winner's heart.

Eddie Redmayne who won best actor for playing Stephen Hawking in "The Theory of Everything" dedicated his award to people battling ALS, the diseases that afflicts Hawking.

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EDDIE REDMAYNE, BEST ACTOR "THE THEORY OF EVERYTHING": This Oscar -- wow -- this belongs to all of those people around the world battling ALS.

ELAM: Julianne Moore earned the best actress Oscar for "Still Alice" about a woman struggling with Alzheimer's.

JULIANNE MOORE, BEST ACTRESS "STILL ALICE": And people with Alzheimer's deserve to be seen so that we can find a cure.

ELAM: J.K. Simmons won the supporting actor prize for his tough as nails music instructor in "Whiplash" while Patricia Arquette took supporting actress for "Boyhood" and used the Oscar platform to speak out.

ARQUETTE: It's our time to have wage equality once and for all, and equal rights for women in the United States of America.

ELAM: Graham Moore made a startling confession after his adapted screenplay win for "The Imitation Game" about World War II code breaker Alan Turing who was persecuted because he was gay.

GRAHAM MOORE, BEST ADAPTED SCREENPLAY, "THE IMITATION GAME": When I was 16 years old, I tried to kill myself because I felt weird and I felt different and I felt like I did not belong. And now I'm standing here. I would like for this moment to be for that kid out there who feels like she's weird or she's different or she doesn't fit in anywhere. Yes, you do.

ELAM: John Legend and Common brought the audience to its feet and tears with their Oscar-winning song "Glory" from the civil rights drama "Selma". The raw emotion carried over to their acceptance speech.

JOHN LEGEND, SINGER: We say that "Selma" is now because the struggle for justice is right now.

ELAM: And in an unexpected musical highlight, Lady Gaga performed a 50th anniversary salute to "The Sound of Music".

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ELAM: So the Oscars really a lot about the music. A lot of people talking about those musical acts and being moved by them and surprised by Lady Gaga showing this other side of her. More and more showing the other side between her part with Tony Bennett and now coming out and singing so beautifully last night -- Carol.

COSTELLO: Yes. It was a pleasure to see. She has actual talent. She should show it off sometimes, right, instead of wearing meat dresses.

ELAM: Without all of the stuff.

COSTELLO: Yes, exactly. Stephanie Elam, many thanks to you. I'll be right back.

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COSTELLO: Bill O'Reilly once again firing back at claims he exaggerated his experience as a war correspondent this time taking on his former colleagues at CBS. Over the weekend O'Reilly called into Media Buzz offering his remembrances of covering the Falklands war in Argentina while a former CBS News colleague Eric Engberg disputed O'Reilly's reporting during an appearance on CNN's "RELIABLE SOURCES".

We've put together the back and forth.

(BEGIN VIDEOTAPE)

BILL O'REILLY, FOX NEWS HOST: I left the hotel. Engberg was still in a hotel, the Sheraton. I came back running back with video for the Rather broadcast that night and Engberg was in the hotel. So I don't know if he was even there.

I would like everybody to ask him were you there? Because his reputation, his nickname was "Room Service Eric". ERIC ENGBERG, CBS NEWS: Nobody stayed in their hotel room because

they were afraid. We were all working and we saw what was a moderate- sized riot. Nobody attacked the soldiers. Nobody attacked the police.

O'REILLY: You have people injured and hurt and you're in the middle of that -- that's the definition.

ENGBERG: I did not see that happen. I didn't see anything like that happen. I didn't hear any gunfire. Not only did I not hear any gunfire, as I say, I didn't hear any sirens.

(END VIDEO CLIP)

COSTELLO: Let's talk about this. I'm joined by Robert Thompson. He's the director of Syracuse University's Media Study Center. Welcome back.

ROBERT THOMPSON, SYRACUSE UNIVERSITY, MEDIA STUDY CENTER: Thanks for having me.

COSTELLO: Thanks for being here. So O'Reilly's defense, he says he's being savaged by left wingers. If that's all it is, why is he spending yet another night tonight defending himself?

THOMPSON: Well, in some ways, this is what Bill O'Reilly does. In some ways this is what the Fox Network does. As long as the people that are accusing Bill O'Reilly remain -- "Mother Jones", former CBS colleagues, former "New York Times" writers -- then he simply goes on the offensive with all guns blazing. This is part of a vast right- wing conspiracy to attack a good American Bill O'Reilly who is trying to give us the fair and balanced report of what really happened.

And in an odd sort of way so far I think ironically enough, this has played in Bill O'Reilly's favor. Now, that could change. If it turns out that all of these stories about having an M-16 leveled at his face and people he dragged to safety, if we can prove that those things aren't true, then this may begin to change. Or if soldiers and other people outside of the mainstream media begin to go after the accuracy of the statements, then it could change.

But so far this is a strategy. Bill O'Reilly is going out simply saying this is business as usual. "Mother Jones", CBS, CNN, they want to discredit me and they'll attack me with whatever they've got.

COSTELLO: Look, Robert, Bill O'Reilly is not a journalist. He's an opinion guy. He makes no bones about that. So does it really matter if he embellished?

THOMPSON: Well, I think it matters. But you're right. There are two -- what Brian Williams and Bill O'Reilly, two different sets of standards. I think the standards of NBC News and the standards of the "O'Reilly Factor" are completely different. They are a completely different act.

And you're right. Bill O'Reilly is an opinion person. His whole idea is to shoot from the hip, to sling all this stuff out. But in the end, I think, people do get uncomfortable if they think you're actually making stuff up.

But, if he can keep the two million people in his fan base, which make him the number one cable news show and has been for a long time, if he can keep them in his corner, he's going to be fine even if all the rest of the people don't believe a word he says because more people don't believe him than do believe him but that's already been the case.

COSTELLO: Ok. So Fox News just came out and gave their full support of Bill O'Reilly. That's very nice of Fox News.

THOMPSON: Surprise. Surprise.

COSTELLO: Surprise, surprise. I wanted to ask you about Brian Stelter because he's come under attack. He's no left wing zealot, let's face it. If he covered Brian Williams, doesn't he have the responsibility to cover Bill O'Reilly? He's like our senior media correspondent. That's his job.

THOMPSON: Yes, he does. And I get a kick out of hearing all of these reports from -- to listen to O'Reilly I should call him Comrade Stelter. I mean this whole idea of being this left wing zealot; Brian Stelter has been, I think, kind of a yeoman reporter of media for a long time.

And, yes, he went after Brian Williams. He goes after Bill O'Reilly. I shouldn't even use the words "go after". I think he and everybody else with responsibility is trying to get to the bottom of these stories.

In the end I think the good thing that comes from this is that all kinds of journalists and soldiers and celebrities have probably been puffing up their lives in public for a long time. Now in the age of all of this digital media, you simply can't get away with it anymore.

Maybe in the end that's a good thing. Maybe if all of us think about the story we're telling -- I have to say, since the Brian Williams story, I tell stories a lot different than I used to. Because the way I used to do it probably tended to be a little puffed up. That's how we did things.

COSTELLO: An honest man -- Professor Robert Thompson, thanks for joining me. I appreciate it.

THOMPSON: Thank you.

COSTELLO: Still to come in the NEWSROOM, a soaring stock market yet so many Americans live paycheck to paycheck. Christine Romans has uncovered some interesting facts. She'll share -- next.

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COSTELLO: Checking some top stories at 55 minutes past. Retail giant Target is slashing the minimum order you need to get free shipping. As of today, you'll need only to order $25 worth of online goods. That's half of its long standing fee. The move makes its free shipping among the most competitive of big retailers.

The bitter rift deepens between Bobbi Kristina Brown's family and her boyfriend. Nick Gordon says he's blocked from seeing Bobbi Kristina in the hospital. She remains in a medically induced coma after being discovered unresponsive in a bathtub. Her father, Bobby Brown, says Gordon has refused to write an account of what happened the night she was discovered.

In Money News, the CEO of Honda says he'll step down from his post in June. His resignation comes after the company recalled millions of cars due to faulty air bags. And federal investigators slapped it with a $70 million fine saying Honda failed to report all the accident information it had.

Foul weather across much of the south is snarling air travel across much of the country. Flightaware.com reporting at least 1,200 flights are canceled for today, about half the scratched flights are in the Dallas area where wind and freezing drizzle has made for miserable conditions.

Think about this. Stocks are at record levels, they've been soaring for years but that extra wealth is having a hard time reaching the middle class.

I'm not telling you anything you don't already know -- right. Chief money correspondent Christine Romans has been digging into this and she's come up with some stuff.

CHRISTINE ROMANS, CNN CHIEF MONEY CORRESPONDENT: I want to show you first what the S&P 500 looks like over the past six years. It's been almost six years of a bull market, Carol, and the S&P 500 has tripled, more than tripled up 212 percent -- up 212 percent. That chart right there spells riches for people who were patient enough or aggressive enough to stay in the stock market.

Here's another fact that came to our attention today from bankrate.com (ph). A survey it just completed that shows how many people, their credit card debt is more than their emergency savings. 37 out of 100 have credit card debt equal to or greater than their savings. That means three out of eight Americans basically are teetering on the edge according to bankrate.com.

How can those two things both be the same? Half of Americans aren't invested in the stock market and wages have been totally flat. So people who earn their money by working with their hands or working with their brain have not been rewarded like people who earn money with money. And that has been sort of the story of this recovery.

A couple quick interesting things I found in this bankrate data, people between the ages of 30 and 49 are in the worst shape. You are paying for childcare. You're saving for kids' college. You might be paying your own college bills and you have a mortgage you may have bought closer to the peak. That was what's interesting to me.

You hear about baby boomers in trouble. You hear about the new millennials. Gen-X actually -- those are the ones who are really --

(CROSSTALK)

COSTELLO: And they're right at that what -- 40-year-old mark -- right.

ROMANS: Yes. Yes. Now bankrate does say though they have another survey that say that financial security has actually been rising. I mean that's what's interesting. Even though these numbers look a little gloomy for how we're handling our personal finances, they are slowly getting better. About 24 percent of people surveyed said they feel more secure in their job this year than last year.

COSTELLO: Well, that's good.

ROMANS: That means three-quarters don't.

COSTELLO: Let's talk about credit card debt. I know, I know. I'm trying to see a bright side in all this.

Let's talk about the credit card debt because I remember when the economy tanked, you said to me people are not using their credit cards as much and that's a good thing and I hope it lasts.

ROMANS: Yes. Younger people in particular; when I look at millennials, they are kind of freaked out by credit cards and more likely t use prepaid cards or a debit. They're too worried that they're going to get out over their (inaudible) so to speak on their credit card. And also credit cards for a long time clamped down on how much you could use them, right, because you know, frankly we overdid it for a long time.

Credit card debt is very, very dangerous. And I think this is a good point to remind people of that. It's easy money that can be very, very painful. There's nothing easy about paying it back. If you can't pay something off in 60 days, 30 days, you shouldn't put it on a credit card.

COSTELLO: When you're not making much money your card is all you need (ph).

ROMANS: I know. And that is the fix.

COSTELLO: Christine Romans, thanks so much. I think.

ROMANS: You're welcome -- Carol.

COSTELLO: Thank you for joining me today. I'm Carol Costello. "@THIS HOUR WITH BERMAN AND BOLDUAN" straight ahead.