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CNN Newsnight Aaron Brown

Could Jessica Lunsford's Killer Walk Free?; Fire Fights Routine at Afghan Border; Tom Cruise's Behavior Eclipses Movie; Movie Studios Hope for Stronger Box Office;

Aired June 29, 2005 - 22:00   ET

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

AARON BROWN, HOST: Good evening again.
Anyone who watches enough cop shows knows that getting the murderer to confess is not enough. How you get the confession matters a lot. If a suspect asks for an attorney and isn't provided one, that can cause big problems for the prosecution down the road. And it is causing problems for prosecutors in the murder case of 9-year-old Jessica Lunsford.

The question tonight, will the confession of her alleged killer be allowed into the courtroom? Did police continue to question him after he specifically asked for a lawyer? And if that confession is tossed, could a killer go free?

We're joined tonight by CNN's Susan Candiotti.

(BEGIN VIDEOTAPE)

SUSAN CANDIOTTI, CNN CORRESPONDENT: Chilling detail describes how he buried alive Jessica Lunsford might never be heard by a jury. The potential problem? These words from John Couey: "I want a lawyer, you know." Not just once but again Couey says, quote, "I just want to talk to a lawyer."

At least seven times during questioning, his voice recorded by investigators and released by the court today, Couey says, quote, "I want a lawyer here present. I want to talk to a lawyer, because I mean, if people are trying to accuse something I didn't do, I didn't do it. I ain't, you know."

The day before police say John Couey admitted he kidnapped, raped and murdered 9-year-old Jessica Lunsford, he was interviewed by Citrus County, Florida, detectives.

According to that interview, taped for evidence, he denied knowing anything about Jessica. In Couey's words, "I swear to God, I had -- I mean, I don't know where she is, period."

But when investigators suggested a lie detector test, Couey asked for an attorney. In his words, "I want to talk to a lawyer first."

Couey's public defender isn't talking publicly, but the suspect's requests, say other criminal defense lawyers, should have stopped questioning immediately. BRUCE FLEISHER, CRIMINAL DEFENSE ATTORNEY: The judge has to look at the totality of the circumstances to make sure that everything is freely and voluntarily given. And in this case, that's suspect.

CANDIOTTI: Even after he asked for a lawyer, the questioning went on and on. The next day, law enforcement sources say Couey was read his rights and willingly took a polygraph in which he confessed, then made a statement to investigators.

A former federal prosecutor says that could save police from a possible major blunder.

KENDALL COFFEY, FORMER FEDERAL PROSECUTOR: It's ultimately a question of whether it's voluntary. But if a defendant is Mirandized three times before the interview begins, three times a chance to remain silent and chooses to speak, three strikes and he's out and that confession comes in.

CANDIOTTI: The sheriff would not directly answer questions about why the questioning continued after Couey asked for a lawyer. A spokesman for the sheriff calls the case against Couey, quote, "rock solid."

Other sources suggest there's enough blood and DNA evidence to convict with or without Couey's alleged confession.

(END VIDEOTAPE)

CANDIOTTI: Now Jessica Lunsford's father Mark tells CNN that he already knew about this potential hitch. He says the sheriff even told him about it. Yet, he says he remains confident that Couey will be convicted.

But Aaron, it is not clear tonight whether the public defender at this stage of events has asked to suppress this confession as yet.

Back to you.

BROWN: All right, Susan, thank you. Susan Candiotti working out of our Miami bureau.

Jeffrey Toobin is here now. I want to go at this a little bit backwards, I think.

JEFFREY TOOBIN, CNN LEGAL ANALYST: OK.

BROWN: OK. At the moment a suspect says, "I want a lawyer," does Miranda require the police stop questioning and get him a lawyer?

TOOBIN: Not necessarily. There are a number of circumstances you have to look at first.

Is the person in custody? One thing that's a little unclear here is whether at that point he was simply free to go. He may have given the Miranda warnings, but you don't have to give Miranda warnings at all unless the person is in custody. If it's just an ordinary office interview, it's unnecessary. It only applies if the person is not free to go.

BROWN: OK. Let's assume then for the moment...

TOOBIN: OK.

BROWN: Let's assume that he is in custody and not free to go, that a reasonable person would believe he was not free to go.

TOOBIN: Right.

BROWN: At the moment he asked for a lawyer, does the questioning have to stop?

TOOBIN: Again, it depends in what context.

BROWN: I hate lawyers.

TOOBIN: I'm sorry, but no, it's just, you know, look, what goes on in these cases is the judges aren't stupid. They don't want to suppress this evidence. They don't want to -- you know, they know what went on here. So, you know, what has happened is lawyers have learned, as lawyers are wont to do, to slice the baloney pretty thin here.

BROWN: And that's what I think happened here, actually. There's a point here -- the sequence goes they say to him, "Will you take a lie detector test?" And he says, "I want a lawyer."

And they say, "You want a lawyer if you have to take a lie detector test?"

And he says, "I want a lawyer." They tie it to...

TOOBIN: To the lie detector test.

BROWN: Now, he then, in the quote that Susan reads, he then says, "People are accusing me of things I didn't do. I want a lawyer." That is a more, to my reading -- I'm not the judge here -- that is a more blanket request for a lawyer: "I am under suspicion for something I did not do. I want a lawyer."

TOOBIN: Correct. But what happens is, the chronology is, when that exchange takes place, they -- soon after that, they end for the day. The following day, March 18, they Mirandize him again. He does not ask for a lawyer and then does the confession.

So the confession is actually a separate day from the request for the lawyer.

BROWN: So, if you're the prosecutor here, you say, well, he -- we gave him the option of having a lawyer before we gave him the lie detector test?

TOOBIN: Correct. BROWN: And he chose to go ahead and do it without a lawyer. So tough for him?

TOOBIN: Tough for him.

And also, Aaron, I mean, these judges, you know, they don't want to throw out a confession like this. They know what a serious case this is. They know how overwhelming the evidence is.

So yes, there are laws on the books, but there is, and I don't want to pretend that judges sort of, you know, ignore the law. But they also...

BROWN: Short of beating the guy with a stick, is the judge going to let the confession in? I mean, at what point does a judge have to say, "Look, Miranda has to mean something"?

TOOBIN: Well, that's right. And that's where you get certain phrases like totality of the circumstances.

And having read the transcripts here, I mean, this is not a beating with a stick kind of situation.

BROWN: No, it's not.

TOOBIN: I mean, this is repeated warnings to, you know, that you can stop this interview at any time. You have the right to remain silent. He's told over and over again. He does not remain silent. He keeps talking, and you know, that means a lot to a judge. And frankly, it should.

BROWN: But there is also a, to my reading -- I don't disagree with that, by the way -- there's also a point where it does seem to me that he's off the question of the lie detector test and into the area of more broadly "I am being accused."

And if he gets a lawyer at that point, it seems to me unlikely that he ever takes the lie detector test, because the lawyer's going to say, "What, are you nuts?"

TOOBIN: This interview is over. Of course. And but...

BROWN: And so if we're talking about the totality of something, doesn't that fit in?

TOOBIN: Well, not really. Because what it affects -- the totality is the relationship between the cop and the suspect, not what a lawyer would have done.

The question is, are you coercing the guy? I mean, there is a kind of rough justice here. What the Fifth Amendment is all about is really about stopping coercion, stopping, you know, the third degree. And you know, judges try to get, you know, a sense of the rough justice here. Is there coercion?

You know, based on my reading of the transcript -- I didn't hear the tape -- it didn't seem like coercion to me, and that's going to be a big factor in this, as well as the seriousness of the crime.

BROWN: Thank you. That was -- that was interesting tonight.

TOOBIN: That's why we're here, right?

BROWN: Yes, it is.

TOOBIN: OK.

BROWN: Thank you, sir. Jeffrey Toobin.

On now to the war that is often overshadowed by the headlines from Iraq. Bad weather in Afghanistan is slowing the efforts to recover the bodies of 17 American troops believed dead after their helicopter crashed yesterday along the Afghanistan-Pakistan border.

U.S. military spokesmen said today the chopper came under enemy fire before it went down, Taliban claiming responsibility for shooting it down. The missing American troops, all members of Special Forces, were on their way to help comrades pinned down by a fire fight with Taliban guerrillas in an area where fire fights have become the norm.

Here's CNN's Barbara Starr.

(BEGIN VIDEOTAPE)

BARBARA STARR, CNN CORRESPONDENT (voice-over): This is the war that is not Iraq. Afghanistan's Hindu Kush, mountain peaks rising more than 10,000 feet along the border with Pakistan, some of the world's roughest terrain.

CNN took these exclusive pictures in 2003 while traveling with U.S. troops in Chinook helicopters similar to the one that crashed on Tuesday.

UNIDENTIFIED MALE: Fire.

STARR: For weeks, all along this border, U.S. and Afghan troops have been fighting insurgents. Nobody thinks Osama bin Laden is here. This is a military offensive against suspected Taliban and al Qaeda fighters that are here.

Just days ago, CNN visited the border again.

(on camera) We're just about two miles from the Pakistan border at a military base deep inside the mountains of Afghanistan, a base that is operated by U.S. Special Forces. The troops here tell us they are in almost constant contact with enemy forces, people trying to infiltrate across that Pakistan border.

(voice-over) The senior U.S. commander was predicting more attacks in advance of the September parliamentary elections.

LT. GEN. KARL EIKENBERRY, COMMANDER, U.S. FORCES IN AFGHANISTAN: The kind of tactics that the enemy will use, we're already starting to see them, continuation of IEDs, the continuation of attacks against soft targets, blowing up of mosques. These are a group of terrorists and criminals that will use any tactic they can to try to stop this democratic process.

STARR: There are disturbing signs of increased organization and funding.

CAPT. BRANDON TEAGUE, 82ND AIRBORNE DIVISION: Past four or five months, they've been well equipped. They all -- they have standardized equipment, AK-47s, grenades, communication equipment, signaling equipment.

STARR: Colonel Patrick Donahue says his troops remain on the offensive.

COL. PATRICK DONAHUE, 82ND AIRBORNE DIVISION: The type of enemy we're facing is more of the insurgent cell operating in the interior. These are the ones that -- who are bombing the -- burning the schools and dropping the hand grenades in the girls' schools and intimidating voters. These are -- this is a new threat that has just emerged in the last month.

STARR: No one can say who fired small arms and rocket-propelled grenades against the helicopter that was brought down, but along this border in this other war, U.S. troops in combat is very much a reality.

Barbara Starr, CNN, the Pentagon.

(END VIDEOTAPE)

BROWN: And again, Americans have yet to get to the crash site, get to the bodies of those Americans who died in that crash.

Time for some of the other news of the day. We're actually a bit early tonight. For that, Erica Hill joins us from Atlanta. Just mark this one down that. We got there early.

ERICA HILL, HEADLINE NEWS: All right. And then it will even out, you know, throughout the rest of the week. That's how we'll do it?

BROWN: Exactly.

HILL: All right. We can work with that.

BROWN: Thank you.

HILL: We start off tonight in Washington, the capital evacuated again as President Bush again moved out of harm's way after a small aircraft entered restricted air space.

Now, it happened just after 6 p.m. in Washington. It all ended a few minutes later. Fighter jets did scramble to intercept the twin engine beach craft King Air, but the pilot was already turning away. He told authorities he entered the restricted area briefly just to avoid bad weather. The gold standard for identification, a U.S. passport. But congressional investigators have discovered failures to share criminal and terrorist data could have left one of the FBI's 10 most wanted let that person apply for a passport and actually get it.

Investigators checked the names of 67 known fugitives against a State Department lookout list and found no warnings for 37 of the names. The passport database did not have information from the terrorist screening unit and the FBI.

For the first time since January, the Army has met and surpassed its active recruiting goals after four months of missing higher targets. In June, the Army attracted more than 6,100 new recruits. That's well above the goal of 5,650. As we mentioned, the first month since January they've met that quota.

A Fresno, California, jury has called for the death penalty for Marcus Wesson, convicted of killing nine of his own children. The victims ranged in age from 1 to 24 years old. Wesson fathered at least two of those children with his own daughters.

The killings came at the end of a police stand off at Wesson's home in 2004. Formal sentencing for Wesson is set for July 27.

And we just want to remind you, because I know how much you love it, Aaron, a new feature at our web site, CNN.com. Just click on the video link when you get there. You'll be able to watch video as many times as you want, all for the price of a basket of hope. That's a new one.

BROWN: That's a new one. You know, you guys must think I am so old that I forget this within a 24-hour period.

HILL: No, I think it's just that all those people upstairs who sign the checks told us we had to tell you.

BROWN: Well, I think it's a great idea, too. Thank you very much.

HILL: And it's free.

BROWN: You bet you. We'll talk in a half an hour.

Just ahead on the program, is the housing bubble growing on the street where your live?

(BEGIN VIDEO CLIP)

BROWN (voice-over): We know it's happening.

UNIDENTIFIED MALE: There's absolutely a housing bubble.

BROWN: We know it's been growing.

UNIDENTIFIED MALE: The last seven or eight years we've seen an unprecedented run-up in home prices nationwide. BROWN: Is anyplace safe, and what should you do with your money?

They're called popcorn movies, except these days, people are enjoying their popcorn at home. The changing nature of show business.

Forget Bennifer; meet Tomkat. Will their love conquer all? Even the movies they're each supposed to be promoting? She's Katie Holmes. He's Tom Cruise. And alas, we are just NEWSNIGHT.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

BROWN: Well, star power being what it is, we're not leading our segment on movies and the business of movies with the business part. We're leading with Tom Cruise, who is a star. A very big star. Also, with Katie Holmes, who is not.

Being the least cool person I know, I confess to being a bit puzzled over the Cruise blitz over the last month or so. I'm not sure I care that much that he's in love or says he's in love. And I'm absolutely sure I don't care what he thinks of psychiatry.

But I do get P.R. And I do get that he has a movie to promote. The question is, has all this nonsense helped the movie?

Here's CNN's Jason Carroll.

(BEGIN VIDEOTAPE)

JASON CARROLL, CNN CORRESPONDENT (voice-over): This is the image of Tom Cruise a movie studio likes to see: a superstar riding high. He literally cruised in for thousands of fans at a "War of the Worlds" premiere. Close by, fiance Katie Holmes and, coincidentally, a scientology center, two key parts of Cruise's personal life, a life that some publicists say is eclipsing his professional one.

LIZA ANDERSON, PUBLICIST: You know what, press can go both ways. It really -- it really remains to be seen. I think the box office will tell a lot.

CARROLL: Paramount Studio executives hoped Cruise's press tour would just tout Steven Spielberg's sci-fi flick. Instead -- they got what industry insiders called an oddly overenthusiastic Cruise, talking of his love for Holmes on "Oprah."

And an agitated Cruise on "The Today Show" when host Matt Lauer asked him about medications for mental ailments. Scientologists are opposed to them.

TOM CRUISE, ACTOR: Do you know now that Ritalin is a street drug?

CARROLL: Will this side of Cruise help or hurt...

CRUISE: You've got nothing to worry about. CARROLL: ... his movie and his career?

SHARON WAXMAN, "NEW YORK TIMES"/"HOLLYWOOD REPORTER": Right now, I think it's pretty much on the edge. It could tip either way. In the sense that up until very recently all the studio executives involved in the movie basically said the movie is fantastic and there's nothing Tom Cruise could say or do that could possibly hurt it.

CARROLL: We talked to two publicists who have dealt with crisis management, Marvet Britto.

MARVET BRITTO, PUBLICIST: He really has a problem.

CARROLL: And Lizzie Grubman.

LIZZIE GRUBMAN, PUBLICIST: I think it might actually be working.

CARROLL: Britto represents Mariah Carey. The songstress is at the top of her game again, but not too long ago what some of the media called strange red carpet behavior had the industry wondering what was wrong.

Britto cautions Cruise to slow down.

BRITTO: He's in P.R. overdrive. Do you know what I mean? There is no focus, no mission. You know? I think he thinks there's a mission. I think he thinks his mission is to, you know, really gain a lot of interest in his movie, but I think clearly this mission is impossible.

CARROLL: Grubman gained unwanted attention in her own right in 2001 after she backed her SUV into a crowd outside a nightclub, injuring more than a dozen people.

GRUBMAN: I think the public definitely forgets. And I definitely think they forgive and they probably will forget and forgive the situation if he does, soon and quickly, stop.

CARROLL: Both say the real test will come this holiday weekend. Once box office receipts are in, it will be clear if Cruise has fallen out of the public's favor.

Jason Carroll, CNN, New York.

(END VIDEOTAPE)

BROWN: Now here's the really cool part. Even if the movie tanks at the theater, Mr. Cruise, Mr. Spielberg and a few others may still walk away with a whole lot of money.

This is because seeing a movie today no longer means going to the movies. Studios now make double the money from tapes and DVDs that they do at the box office.

So other than better popcorn, what does this mean? In a moment, we'll talk with a pair of Hollywood heavyweights. First, though, from Hollywood, CNN's Ted Rowlands.

(BEGIN VIDEOTAPE)

TED ROWLANDS, CNN CORRESPONDENT: It's possible that Hollywood's problem is Todd Stites.

TODD STITES, MOVIE BUFF: I love movies.

ROWLANDS: And you're staying home?

STITES: I'm staying home.

ROWLANDS: Todd, a Los Angeles television editor, is a movie buff. He says one year he saw more than 90 films in the theater. This year, he's seen just three.

Todd says movies he used to run out to see he now buys on DVD. Todd recently upgraded his home system with surround sound and says it takes a special occasion to get him to the theater.

STITES: By the time you get the food and the drinks, the ticket, the parking, you're talking I could have bought two DVDs for that price.

ROWLANDS: While there have been some hits this year, for the past 18 weekends, box office receipts are down from last year, a record losing streak that even "Star Wars Episode 3" couldn't break.

ANTHONY DANIELS, AS C-3PO: I feel so helpless.

ROWLANDS: What's happening is the subject of a great debate.

According to a CNN/"USA Today"/Gallup poll, 48 percent of those surveyed said they're going to fewer movies than they did five years ago. Why? DVD's is the number one reason given, but there are other factors: price, time and the poor quality of recent movies.

PAUL DERGARABEDIAN, EXHIBITOR RELATIONS: You have to have good product, great marketing, great in theater experience and then people will go back.

ROWLANDS: This year, even critically acclaimed movies like "Cinderella Man" have been disappointing at the box office. It took $88 million to make the film, but so far it's only grossed about 50 million.

The last big slump, 17 straight weeks of lower box office numbers, was in 1985. That was blamed partly on video cassettes.

The hope here is to break the current streak this holiday weekend with Tom Cruise and the "War of the Worlds."

CRUISE: You've got nothing to worry about.

ROWLANDS: Todd Stites says "War of the Worlds" is the kind of movie that would get him out of the house. STITES: That one I'll go see. I'm looking forward to that one.

ROWLANDS: Hollywood is hoping that others, many others will follow.

Ted Rowlands, CNN, Hollywood.

(END VIDEOTAPE)

BROWN: And in a moment, two more players, if you will, writer Kim Masters and producer/director Marshall Herskovitz.

Then the implications of the housing bubble for home buyers and homeowners, which is both of us probably. Take a break first. From New York, this is NEWSNIGHT.

(COMMERCIAL BREAK)

BROWN: Hollywood is all about insiders and outsiders. And we're joined now by one of each, both heavyweights in their circles.

Marshall Herskovitz is a movie producer, a television producer and director, as well. His films include "The Last Samurai," "Traffic," a terrific movie, that, "Legends of the Fall." He also produced the television hits "30 Something" and "Once and Again."

Kim Masters covers the business of entertainment for National Public Radio. And they join us from Los Angeles, though different parts of Los Angeles tonight.

Kim, is it, as my mother would say, they just don't make movies like they used to?

KIM MASTERS, NATIONAL PUBLIC RADIO: Well, I do think that there is a lot of that. I think that this has been -- that there is some debate within the industry as to how bad the slump really is and whether it's something of an illusion because there were these -- you know, these aberrations last year, "The Last Temptation of the Christ" (sic) being one of them, maybe "Fahrenheit 9/11." Is there really a slump.

But I think it's safe to say, though, a lot of people have expressed disappointment with the movies, all these sequels and remakes.

BROWN: Marshall, is it as simple as saying "Passion of the Christ" last year and I guess "Fahrenheit 9/11" did great box office to skew the year-to-year? Or is there also something fundamental that's changed, in the same way something fundamental has changed for network television, for example.

MARSHALL HERSKOVITZ, MOVIE PRODUCER: Exactly. It's kind of like global warming. You know it's coming. And you see a storm or you see a glacier break up. Is this the thing or not?

Certainly, the home experience of movies is where life is going, and DVDs are, you know -- are taking over the landscape more and more.

So is it now or you know, is "War of the Worlds" going to come out and a couple other ones and sort of right the ship for now? I think who knows? The question is what do the corporations who run this whole business, the six corporations who run basically media in our country, how do they really feel about this shift? That's what I'm interested in.

BROWN: And what do you think the answer to that is?

HERSKOVITZ: I think they are preparing for the idea that theatrical distribution will take a smaller role in the experience of seeing movies. As you said, they're already making maybe twice as much money out of DVDs right now.

What they're scared about is what happens five years from now when the next sort of iteration of technology takes place? It's about downloading. It's about what people are doing with iPods in music. How will that affect their revenues? They don't know, and they're scared about that but boy, they're enjoying the DVDs now.

BROWN: Kim, is there something, though, still, essential to the success of a movie about box office?

MASTERS: Well, the studios say there is. And certainly the theater owners say there is. They say that -- the studios say that it's very hard to have a product of movies stand out in the crowd without an exclusive theatrical run like with "War of the Worlds."

And certainly, they're also arguing, the theater owners are arguing that there's something special about going to the movies. Now I hear from...

BROWN: Yes, there is. Nine dollar boxes of Dots.

MASTERS: Exactly. People feel that it's too expensive, that the crowds are noisy, that you know, that they're not getting what they're paying for.

BROWN: Marshall, do you go to movies? Do you see them in the theater?

HERSKOVITZ: I do go to movies, not as often as I used to. I don't really like the experience of going to the theater anymore, I have to say. I think there is a big issue with how theatres are run, how people behave in theaters. I think it's chased a lot of people away.

Remember, like with network television, even a very successful movie is attracting maybe 15 or 20 percent of the possible movie going audience. Most people just don't go.

BROWN: Final question to both of you. Marshall, let me start with you, since you mentioned first the fact that, essentially, the movie industry is run by six very large corporations, of which I work for one of them. How does that affect the movies that get made? HERSKOVITZ: Oh, I think it's been a negative impact, frankly. I think any movie today is at least $100 million startup company with no real template as to how that product is going to be accepted. And that's a pretty scary thing. And the industry has allowed that to happen, has allowed movie to be this expensive. And when it's that expensive, then they have to be so careful and so fearful about taking any chances.

BROWN: Kim, is there hope for the small movie? And is the salvation, if that's the somewhat overused here I think, salvation of the business in smaller movies?

MASTERS: Well, I think there is -- you know, the studios are trying to capture that too. But it has seemed to me, as Marshall says, that these big companies, you know, there's a lot of bean counters. And that is not compatible with an industry that relies on creative impulses and risk taking. So, I do think there's an opening here for some entrepreneurs to make something that might be fresh and different.

BROWN: An entrepreneur with $100 million, that's a heck of an entrepreneur. Nice to talk to you both. Thank you.

HERSKOVITZ: Same here, thank you.

MASTERS: Thank you.

BROWN: Bye-bye.

Just ahead on the program tonight, biggest investment most of us will ever make short of bank rolling a movie. I think you can be pretty sure we'll not be doing that. We'll look at the soaring price of housing, whether buying a home still makes sense, and what your money buys you. We'll look at the median price of a house.

And later, forget 76 trombones. Meet the modern day music man who gets unknown talent into big-time movies. This feels like a theme night. But it's not, it's NEWSNIGHT.

(COMMERCIAL BREAK)

BROWN: Back in the mid '90s, when we were all thinking of early retirement after our Internet stocks tacked on another 10 or 15 points, there were naysayers who said it wouldn't last, who said rationality always returns eventually, who said it was a bubble and a dangerous one at that. Oh, those naysayers.

By the way, are you counting on home equity to fund your retirement? Like the fact that your home doubled in the last decade or so? Feeling rich again? So is this deja vu with a mortgage? Here's CNN's Andy Serwer.

(BEGIN VIDEOTAPE)

ANDY SERWER, CNN CORRESPONDENT (voice-over): Is there a housing bubble? It depends who you ask and where you ask. DEAN BAKER, CTR FOR ECONOMIC POLICY RESEARCH: Well, there's absolutely a housing bubble. In the last seven or eight years, we've seen an unprecedented run-up in home prices nationwide.

SERWER: No question, certain markets are red hot. Since 2000, the price of a single family home has jumped 77 percent in New York City, 92 percent in Miami, and 105 percent in San Diego. And there are other signs besides just home prices, 86 books on real estate investing were published last year, nearly three times as many as 1998.

Speculators have added fuel to overheated markets. In Los Angeles, for example, the number of homes sold that have been owned for less than six months jumped 47 percent in a year.

Prices are so high in some areas that renting a home has become dirt cheap by comparison. In San Francisco, for example, rent on a median price house runs $1,532 a month. Owning the same house with a typical mortgage would cost $3,424 a month.

But not every market is on fire. Some experts say that bubbles are mostly in cities on the east and west coasts. If those bubbles were to burst, it would shock the entire economy. But some say prices won't collapse, they'll just ease up.

UNIDENTIFIED MALE: As long as the local economy remains strong and there is good job creation, then we're not going to see a drop in home values.

SERWER: In cities such as Dallas or Salt Lake or Pittsburgh, prices haven't risen nearly so much. Radical differences in prices can make moving from a hot zone like LA to a colder one like Syracuse either a windfall or a slap in the face, depending on which way you're going.

So what does all this mean for the prospective buyer?

FRANK NOTHAFT, CHIEF ECONOMIST, FREDDIE MAC: It's a very personal decision whether or not they should sell now and choose to rent. If you're happy with your home and you enjoy the home that you're in and the neighborhood you're in, there's no point to sell it right now and switch to renting.

SERWER: In other words, don't just buy a home because you think you'll make a ton of money on it in two years. And don't sell your home just because it's appreciated wildly either. Because in real estate, as in everything else in life, you can't count on getting a better deal down the road.

Andy Serwer, CNN, New York.

(END VIDEOTAPE)

BROWN: Taking the global view for a moment, globalization being the rage these days, in 2004, housing prices in Spain and France went up even faster than they did here in the United States, 15 percent up for the year. Compared to 9 percent nationwide in the U.S.

But before you bet the farm, or the house, consider this. In Japan, house prices have dropped for the last 14 years. And they are now down 40 percent from their peak back in 1991. Here at home again, the median price of a house is $207,000. That means half the houses cost more, half the houses cost less. So what does 200 grand and change get you? Here's CNN's Gerri Willis.

(BEGIN VIDEOTAPE)

GERRI WILLIS, CNN CORRESPONDENT (voice-over): Three families with three new homes.

UNIDENTIFIED MALE: My name's Anthony Prodencio (ph). This is my wife, Christina. Welcome to our house.

WILLIS: Each purchased recently for a price very close to the current national median price of $207,000. That's more than a 12 percent jump in one year for buyers in the middle of the U.S. housing market. So we looked around the country, what do you get and what do you give up for a couple hundred thousand?

We looked in places where the median price tag matches the national figure. Places like Hampton Roads, Virginia, Madison, Wisconsin and Portland, Oregon.

BEN FULLERTON, OREGON HOMEOWNER: This is our first house that we've purchased and it's really great. It fits all our needs. It's not exactly what we were looking for, but it's a cozy house for just the two of us.

WILLIS: Ben and Amanda Fullerton's house is in Hillsboro just outside Portland. If February, they were able to buy below the local median price but it wasn't their first choice.

FULLERTON: This was actually our sixth offer that we placed on a house.

WILLIS: What the Fullerton's got, three bedrooms, two baths, a kitchen for her.

UNIDENTIFIED FEMALE: Tons of counter space.

WILLIS: A garage for him.

B. FULLERTON: A little work area back here.

WILLIS: But for their money they also got a lot of background noise.

In Hampton Roads, Virginia, naval petty officer Anthony Prudencio also bought his house in February. He deals with its biggest trade off every day.

PRUDENCIO: The commute. The commute. It's a longer commute for me. It takes me about 40 minutes to get to work in the morning, an hour, at least, to get home.

WILLIS: For their four-bedroom house, the Prudencios paid almost $5,000 above the area's median price. They and their son Jonathan like having a separate family room and a second story. But they spent more than they planned.

KRISTINA PRUDENCIO, VIRGINIA HOMEOWNER: We started looking in the price range of $150,000 to $175,000. And quickly found out that those homes were a lot smaller than what we wanted that were at that price. So, we upped it to around 200,000.

GINA GILLIS, REALTOR: They spent $207,500 on this particular home and I really think they could have probably, five years ago, got a house twice this big.

WILLIS: Like the Fullertons in Oregon, the Prudecios spend about 40 percent of their take home pay on the mortgage. It's that trend, people paying a larger and larger share of their incomes on housing, that some see as a danger.

NICOLAS RETSINAS, HARVARD: In order to afford a $200,000 home, clearly a function of what you put down, but generally speaking, you'd have to make about $60,000 to $70,000 a year. The reality is, in today's economy, one-third of all jobs pay less than $25,000 a year.

WILLIS (on camera): But Americans keep right on buying, even in a market where the median sale price is pushed past $200,000. And while more people own homes than ever before, many may be biting off more than they can chew.

RETSINAS: Back in the 1950s, the rule-of-thumb was that the -- a home was about twice your salary. That stayed the same for many years. Today, it's more likely to be four-to-one and in some markets, particularly the super heated markets of the west coast, it approaches nine-to-one.

WILLIS: Of course, some people get a house they can afford without having to make a lot tradeoffs. Like this family in the Madison, Wisconsin area. They just got lucky.

GERALD WRIGHT, WISCONSIN HOMEOWNER: Our friends a neighbor and we thought: Let's stop by and see it. And we came here and looked at it. Immediately called the realtor who it was listed under and it went like that from there.

WILLIS: Jessica Ace and Gerald Wright, a self-employed wine salesman, got the house they wanted for $7,000 less than it was appraised for. A good deal, considering the style and the details and the neighborhood. But their new home held some surprises, like the furnace.

WRIGHT: It was a nightmare. An absolute nightmare. It kept breaking down.

JESSICA ACE, WISCONSIN HOMEOWNER: Unfortunately, our hot-water heat is run through our furnace because we have an oil. And so when the furnace went down, than that also meant that we had no hot water in the house.

WILLIS: In the end, despite broken furnaces and stretched finances, all three families feel their $200,000 was well spent.

A. PRUDENCIO: We got a fair price, considering the amount of house we got.

ACE: Got a lot more living space. We have -- we actually have closets.

A. FULLERTON: It's ours.

B. FULLERTON: I think just that we could do whatever we want with it and it's ours.

WILLIS: That's life in today's housing market. It may cost you more than you'd like, maybe more than you should pay, but once you own it, it's home.

Gerri Willis, CNN, New York.

(END VIDEOTAPE)

BROWN: Ahead on the program tonight: He's not a composer, but he makes movies sing and helps unknown musicians make a name for themselves and he's on the rise.

Also ahead, something new for Amtrak: A break from Congress. But how much time does it buy the railroad?

Take a break, first.

Around the world, this is NEWS NIGHT.

(COMMERCIAL BREAK)

BROWN: Quarter-to-the-hour. Just as the format requires, time to head to Atlanta and some of the day's other headlines from Erica Hill, who is there, yet again -- Ms. Hill.

HILL: Here I am, ready to go.

We start of actually, with another blow for the beef industry. It turns out the cow with the second confirmed case of mad cow disease in the U.S., was born and raised in Texas, the cattle capital of the country. The U.S. Department of Agriculture said DNA testing showed the cow was born 12 years ago. Now, the only other mad cow case discovered in the U.S., in the state of Washington, was a cow imported from Canada. The USDA is now working to identify offspring and herd mates from the infected cow. It was incinerated at pet food facility, in Waco, Texas.

At least a few more days of freedom for two reporters threatened with jail for refusing to reveal their sources. This, after a federal judge agreed, today, to hear an appeal by Judith Miller of the "New York Times" and Matthew Cooper of "Time" magazine. The two face contempt charges for refusing to reveal the sources who leaked the name of CIA officer Valerie Plame. Now on Monday, the Supreme Court refused to hear an appeal by the reporters, initially. Columnist Robert Novak, who's also a contributor to CNN, revealed the name of the CIA officer. He has not been charged.

A reprieve for Amtrak in Washington today, by a voice vote. The House of Representatives rejected big cuts in the Amtrak budget, restoring over $600 million. The proposed cuts would have eliminated 18 Amtrak routes including all cross-country runs.

And, we just want to remind you here, a new feature at CNN.com. Log on, click on the video link. You'll be able to watch the video as often as you want all for the fine price of: A fine how-do-you-do.

BROWN: As soon as I get past dial-up service, I'm going to try that.

HILL: Good luck.

BROWN: Thank you. See you tomorrow.

In every corner of life, there are big dogs and underdogs and more often than not, their paths never cross. In the world of music, that's where Luke Eddins comes in, he proposes musicians you've never heard of to some of the biggest names in movies and TV. His most recent coup, placing four songs in Stephen Spielberg's new movie "War of the Worlds," all of which, is to say Luke is "On The Rise."

(BEGIN VIDEOTAPE)

LUKE EDDINS, MUSIC PROMOTER: Denise, hey it's Luke from Luke Hits. Just calling to follow through.

My company is called Luke Hits and I help underdog bands land their songs on the big screen and commercials.

I'll have to give them one of your songs, maybe.

You know what, I haven't heard back from them yet, but I think that they're still considering it.

I want it to become a human Google. Literally, sifting through all the clutter that's out there, to try to save the time for the studios, so they didn't have to sift through it.

I think it's time to do a little bit of work.

(SINGING)

I work out of my one-bedroom tiny apartment here in Hollywood. I've just cracked my first Red Bull of the evening. It's about 3:30 a.m. right now.

(SINGING)

I'd say I probably get an average of four hour of sleep during the week. I've got the clocks set an hour fast so I'm never late.

(SINGING)

I do everything. I do the faxes. I do the music. I drive CDs over to people, sometimes.

How are you? Good to see.

UNIDENTIFIED FEMALE: Good to see you.

EDDINS: I've put together some of Star Child, that same band that you heard before; a whole bunch more tracks by them.

UNIDENTIFIED FEMALE: Sure, no problem. We love your stuff.

EDDINS: Hey, guys. Good to see you.

What I found is that the studios don't want to pay top dollar for a lot of these major-label artists and at the same time, they don't want the monotonous generic-sounding music-library stuff. So, this is real music from real artists that just so happen to sound like very expensive artist.

I actually stayed up all night with Alex and we produced a track which wound up in a Miller beer commercial.

(SINGING)

This is a song by a band called Mirror. I placed it Extreme Makeover Home Edition. It plays every week. The song is called, "Saving Your Regrets."

Hal, what's going on?

The most exciting part, without a doubt, is when I get to call the band up and tell them the news, that they're song is in a movie. They flip out.

I just called up a girl called name Camille Madison, who I just got her song in this Dove commercial.

The goal of (INAUDIBLE) is to help the smallest of the small guys and link them with the biggest of the big guys with the blockbuster films, with the commercials that are going to be so ubiquitous that everyone sees that commercial.

Peace out, I'm going to go find some more sweet songs.

(END VIDEOTAPE)

BROWN: Coming up, the Russian president and the Super Bowl ring. The morning papers after the break.

(COMMERCIAL BREAK)

BROWN: Okey doke. Time to check "Morning Papers" from around the country and around the world. Thought I lost that one.

"The Washington Times" leads it off. For some reason, I thought I had "The Washington Post" in my hand. Clearly it's not.

"The Washington Times," "Iran Leader Linked to '79 Embassy Crisis." Ex-hostage recall -- I'm not even going to take a shot at this -- anyway, he's the new president-elect and apparently he was doing bad things back there a generation ago.

"Health Funds for Veterans Misjudged: White House to Request Emergency Spending." "Bush administration yesterday admitted it badly miscalculated health care spending for veterans this year."

"The Rocky Mountainous." "Protests Over Primate Research." I don't know, I just like the picture, OK? You got a couple of people with monkey heads on. That will generally get you in this segment. If you're publishing a paper, you want to get in the segment, put monkey heads on the front page.

This just a great story "To Russia With Love." "Kraft gives Super Bowl ring to avert international crisis." So, Bob Kraft, who owns the New England Patriots was visiting the Russian president -- I don't know how that came about. And said here, look at the Super Bowl ring. And the Russian president took a look at it and then stuck it in his pocket and left the room.

Those guys. Thing's worth like 20 grand, OK. Bob Kraft is worth about $10 billion. So, it's not a big deal, but -- I don't know that. But he's worth a lot.

The San Francisco -- no, "The Cincinnati Enquirer," how we doing on time? Oh, my goodness. Leads local. "These schools sell education for a profit." It's part of a series they've done on charter schools, the trouble with charter schools.

Growing casualty of war. Marriages, says "The Examiner" of Washington.

The weather in Chicago tomorrow, thank you, "uncle." Hot again. We'll wrap it up in a moment.

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

DIANA MURIEL, CNN CORRESPONDENT (voice-over): Trevor Rees-Jones was the sole survivor of the car crash that killed Princess Diana and his boss, Dodi Fayad in August, 1997.

UNIDENTIFIED MALE: The car -- the front of it is totally smashed in.

MURIEL: The fired family bodyguard, a passenger in the car that night, needed extensive surgery to rebuild his face. But rebuilding his life has been tougher. He lost his job working for Dodi's father, Muhammed al Fayad after the millionaire claims Rees-Jones had a role in the crash.

TREVOR REES-JONES, FRM. BODYGUARD FOR DODI FAYAD: He only sees his own truth. He's not going to be happy and until the definitive version is the one that he puts out. And it's never going to be, because as far as I'm concerned, it was just a simple car accident.

MURIEL: A French inquiry cleared Rees-Jones of any responsibility in 1999. A year later, he wrote a book about his experiences called the "Bodyguard's Story." But since the book, he has never sought publicity and says he has moved on with his life.

He runs his own security company. And has worked in Iraq and for the U.N. in East Timor.

(END VIDEOTAPE)

BROWN: Good to have you with us. We'll see you tomorrow. Good night.

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