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Gulf Oil Spill Crisis; No Court Appearance for Shahzad; Iran Has Nuclear Deal; Teachers Can Have Jobs Back; Paying Off Debt; Showdown in Bangkok

Aired May 17, 2010 - 09:00   ET

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

BROOKE BALDWIN, CNN ANCHOR: And a good Monday morning to you. I'm Brooke Baldwin, in this morning for Kyra Phillips. And here is what we're working on for you.

First, BP says plan C is now working. But the question we're asking is just how much oil is getting out of the gulf? Expect more tough questions today on Capitol Hill.

And there is a new showdown in Thailand. Thousands of protesters defying this deadline to disperse. And they're now the target of live fire. Unbelievable pictures there.

And a group that helps gang members get straightened up, takes an economic knockdown punch. But they say they're not out just yet.

But first, I want to start with this. Forget plan A, even plan B. We're talking plan C now this morning in the Gulf of Mexico. After those two failed attempts, oil giant BP says its latest effort at tapping that gushing wellhead in the Gulf of Mexico is now working.

Here's what we know. The company says this four-inch mile-long pipe is acting kind of as a siphon pumping crude oil to this tanker ship way up on the surface some 5,000 feet up.

Now BP doesn't exactly know how much of the spill is actually being mitigated by the siphon fix. That's one of our big questions. But this -- as they're calling it -- this positive step forward is coming as both Homeland Security Secretary Janet Napolitano and BP's chairman will appear before a Senate committee later today assessing the response to what many lawmakers have called a catastrophe.

And CNN's Ed Lavandera is live in New Orleans with an update on this latest step here, Ed.

And just -- if you can give our viewers a little bit of a comparison. We're talking about this mile-long piping, kind of like a gigantic straw.

ED LAVANDERA, CNN CORRESPONDENT: That's a good analogy. And that is they made several attempts over the weekend that didn't go so well. But yesterday, BP officials announcing that that insertion tube had dropped in there -- into the riser, which was that long pipe coming out of the ocean floor which is where the leak is. They have started siphoning off that now. We've just heard from BP officials who are just now saying that they believe they're getting about 1,000 barrels from that leak. Of course, they've been saying that there is a 5,000 barrel a day leak.

So if you go by those calculations, we're looking at about 20 percent of the leak, they believe, is now being see siphoned off. Of course we've heard a lot over the last week as well that there are many experts who are out there who believe that this leak is much greater than 5,000 barrels a day.

But clearly, we're here at the initial spot. So you don't really see a lot of people jumping for joy at this point. The concern is that BP officials are worried that given the conditions down there, the cold temperatures, the pressure, that sort of thing, that is, as the oil makes its way into this insertion tube, that it could become clogged.

So they are taking it very slowly. They say slowly over the course of the next day or so. They'll start opening up that valve to try to take in more and more. They're worried that if ocean water gets into those pipes that that would freeze up and essentially clog everything.

One of the executives from BP this morning on "AMERICAN MORNING" explained a little bit better about what they hoped to do over the course of the next day.

BALDWIN: Well, Ed, now that we're hearing about the different fixes and the calculations as to how much may or may not be spilling deep under water, my next question is this issue of these massive underwater plumes miles long, miles wide, which could also prove some assertions that this thing -- this bill is a whole lot bigger than people initially thought.

LAVANDERA: Well, this is another fascinating part of all of this right now, Brooke. We had been hearing from many environmentalist scientists who believe that -- they believe that the real damage and what we couldn't see was much worse than what we could see on the surface of the water.

So far minimal impact on shorelines. But these researchers who have been out there in the Gulf of Mexico over the last few weeks are now starting to get data that shows that they believe that there are these giant plumes and essentially these little bodies of oil underneath -- deep underneath the surface of the water that we can't see.

Of course, the concern is where all of this is moving and how it's moving. There is some concern out there that it can get into the currents in the Gulf of Mexico, that it would essentially pull it eastward towards the Florida Keys and up along the Atlantic coast.

If a huge amount of oil gets into that kind of stream that could have catastrophic consequences for regions that are far away from where we are here on the Gulf Coast. BALDWIN: That is a huge piece of the story. Ed Lavandera, I'm sure you'll be digging deeper on the story below the surface.

Ed, thank you.

We're also following this developing story out of Afghanistan. Here's what we know. This commercial airliner has crashed. Forty- four people were on the flight when it simply disappeared this morning in this mountainous area north of the capital there. There is no word yet on survivors.

NATO aircraft have joined the search but bad weather hampering the search. In the meantime, we're hearing those efforts.

Of course, as soon as we get an update on that we will pass that along.

Meantime, we are hearing now from a suspected terrorist in his own words. CNN has obtained two e-mails from Faisal Shahzad, you know, the man charged with the failed car bombings of New York's Times Square.

Well, Shahzad voiced his frustrations with the state of the Muslim world and sought a way to, quote, "fight back." One e-mail was sent to a large group of people four years ago. The other sent to a slightly smaller group as recent as last year.

The FBI has read the e-mails and interviewed some of those who received them and according to court documents, Shahzad has admitted to the failed attack and that he recently received bomb-making training Pakistan.

Remember it was just two weeks ago today that Faisal Shahzad was taken into custody as he was trying to flee the country. But during that time, he has not appeared in court a single time.

It's really an exceptional situation and CNN's Allan Chernoff has been looking into it.

(BEGIN VIDEOTAPE)

ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT (on camera): The legal clock began ticking Monday night May 3rd at 11:45 p.m. when Faisal Shahzad was arrested here at Terminal 4 of JFK airport. Customs and Border Patrol agents pulled Shahzad off an Emirates plane that was about to depart for Dubai.

The U.S. Attorney's Office said Shahzad would appear before a judge the next day.

(Voice-over): Early the next morning, media was staked out, hoping to see the alleged Times Square bomber at the U.S. courthouse. They kept waiting and waiting for Shahzad's appearance, called a presentment before Judge Kevin Fox.

(On camera): But as reporters were waiting, federal agents were making progress interrogating Shahzad, even after reading him his Miranda rights to remain silent and consult an attorney.

And by the end of the day, the U.S. attorney was doing an about- face. There would be no court appearance for Shahzad that day.

BILL BURCK, FORMER FEDERAL PROSECUTOR: I don't know of another time this has happened. I haven't heard of another time that this has happened.

CHERNOFF (voice-over): "In all criminal prosecutions the accused shall enjoy the right to a speedy and public trial," begins the 6th Amendment. Shahzad is a U.S. citizen. Are his rights being violated? Not at all, according to Manhattan's U.S. attorney.

PREET BHARARA, U.S. ATTORNEY, SOUTHERN DISTRICT OF NY: He has waived his right to speedy presentment and he has waved that right every day and has done so voluntarily.

CHERNOFF: That criminal procedure, experts say, is easing the way for prosecutors to gain valuable information from Shahzad since there is no court-ordered detention for him.

(On camera): Defendants awaiting an initial court appearance are often held here at the Metropolitan Correctional Center which is right across the street from the U.S. courthouse. But former prosecutors and veteran defense attorneys say it's unlikely that Shahzad is staying here.

They say the government is almost certainly providing him with much more comfortable accommodations.

Is it likely they've got him in some hotel?

JAMES COHEN, PROFESSOR, FORDHAM UNIVERSITY SCHOOL OF LAW: I bet they do have him in a hotel. Again, I can't give you the specific name of the hotel because I don't know. But they do have him in a hotel. He's in a room, he's probably not alone in a room. And there would be an agent there 24/7.

CHERNOFF (voice-over): Former agents tell CNN they have kept defendants in drug and terror cases at well-guarded hotels outside of Manhattan. Even a kind of safe house is a possibility. The FBI says only Shahzad is in a secure location.

Shahzad does have the right at any time to say he wants to appear before a judge. But if he doesn't, the U.S. attorney says they'll keep Shahzad out of court as he has been for 14 days and counting as long as he's useful.

BHARARA: At such time that he ceases to continue to cooperate or we've gotten all the information that is necessary to do our job in protecting the public, he'll go out to court.

(END VIDEOTAPE)

BALDWIN: And Allan Chernoff joining me now this morning from New York. So, Allan, let me ask the obvious question which is, where is a lawyer for Shahzad in all of this or does he even have one?

CHERNOFF: We don't know for sure, but there is a lot of debate among people in the legal profession. Well, on the one hand, some lawyers say, why help him out? Why give him a lawyer who would then say, OK, you should go to court and maybe this whole interrogation process could be cut off?

But a lot of other lawyers are saying, hey, the government should have provided him with one and has because it's the safest route? That way, a judge can't say, the cooperation was coerced, that he's had legal representation from the Federal Defenders Office.

BALDWIN: And we know he's been talking, talking, talking. So is there even an advantage to making a court appearance?

CHERNOFF: Yes. A lot of attorneys say, you know, in this case, there really isn't because the attorneys argue, look, there is no way Shahzad is going to get bail. So he might as well -- if he's willing, he might as well cooperate and eventually the prosecutors can write a letter to the judge saying hey, Shahzad has cooperated.

He was able to lead us to so-and-so and theoretically, down the road, that could reduce his sentence, if he is convicted.

BALDWIN: Fascinating. He has been cooperating as much as he has.

Allan Chernoff, for us in New York. Allan, thanks.

The White House wants Republicans to know a little bit more about Supreme Court nominee Elena Kagan. They have now asked the National Archives to release 160,000 pages of documents from her time in the Clinton White House.

Kagan served as associate counsel and deputy director of the Public Policy Counsel from '95 to '99.

Senate confirmation hearings are expected to begin sometime this summer. And Arizona Republican Jon Kyl says a filibuster, not very likely.

Are you, the voter, sick and tired of incumbents? Well, three test cases tomorrow could give us some answers here ahead of November's congressional elections, could be a microcosm of November.

In Arkansas, Senator Blanche Lincoln is facing a primary challenge from a more liberal candidate Lt. Gov. Bill Halter. Now a third candidate could prevent either from winning a majority triggering a run-off next month.

Meantime, take it to Kentucky. Republican primary for Senate there. Tea party favorite Rand Paul is leading the polls. You recognize his last name. He is -- yes -- the son of Texas congressman and former presidential candidate, Ron Paul. And Kentucky's secretary of state Trey Grayson is Rand Paul's main rival and Senate GOP leader Mitchell McConnell's choice.

And in Pennsylvania, Democratic primary there, Senator Arlen Specter is being challenged by Congressman Joe Sestak. Specter's party switch last year -- remember this -- it is a main point of contention for voters.

(BEGIN VIDEO CLIP)

SEN. ARLEN SPECTER (D), PENNSYLVANIA: For years, I have tried to moderate the Republican Party. And when the stimulus came up and President Obama asked me for his support -- for my support, and it looked like we were sliding into a 1929 depression, I sided with President Obama.

It wasn't my job to be saved. It was the jobs of thousands of Pennsylvanians and Americans.

Look here. I had a clear shot at re-election. If I had stayed with the obstructionist Republican caucus, I would have been reelected easily, especially in an out-year when the party out of power is favored.

REP. JOE SESTAK (D), PENNSYLVANIA: It's a race that actually where everybody knows Washington is broken. And everybody knows that. If you're going to still send back to Washington, D.C. a career politician that actually would switch his party, as he said, to keep his job, then we are not going to fix the mess that we got in to by sending him back.

And so yes, he is a poster child for what's gone wrong in Washington, D.C. A generation of politicians who think that they can take a position, not based upon conviction or core beliefs, but about their electoral prospects.

So it is time, people say, for a different generation, a new generation, new ideas, new energy, and someone who'd be will to lose their job over doing what's right for the people of Pennsylvania.

(END OF VIDEO CLIP)

BALDWIN: And if you like more coverage on the primaries, well, we have a wealth of information for you. Real easy. Just go to CNN.com/politics.

And dare I say, here we go again? If you're booked on a flight overseas either today or tomorrow, heads up, could be facing some more delays. The culprit, yet again, Iceland's volcanic ash cloud disrupting travel in Europe. London's two major airports -- Heathrow, Gatwick -- both, including airports in both Dublin and Amsterdam have reopened after having been closed overnight.

That has caused delays, cancellations -- you know it -- across the continent. But not quite as bad as at least a couple of weeks ago. You remember that? The agency controlling European air traffic expects 1,000 flight cancellations today. Just to put it in perspective for you, there were about 29,000 flights on a normal day. Iran taking a step, it hopes, to stop the international call for Tehran to halt its suspect nuclear program. But is it real or might it simply be a ruse? We will get a live report -- live reaction from the region.

ROB MARCIANO, CNN METEOROLOGIST: I'm Rob Marciano at CNN Severe Weather Center. We're tracking that ash cloud plus the potential for severe weather later in the week. Stay tuned.

The CNN NEWSROOM is coming right back.

(COMMERCIAL BREAK)

BALDWIN: Well, in Iran taking a step today to answer concerns about a suspect nuclear program. You know it's agreeing to ship its low enriched uranium to Turkey. Washington and its allies have been pressuring Iran to send uranium stock piles out of the country really for the last few months now and in exchange Iran would get reactor- ready fuel rods.

Tehran here is hoping this will avoid even more international sanctions.

(BEGIN VIDEO CLIP)

MANOUCHEHR MOTTAKI, IRAN'S FOREIGN MINISTER: We express our strong conviction that we have the opportunity now to begin a forward- looking process that will create a positive, constructive, non- confrontational at most felt leading to an era of interaction and cooperation.

(END OF VIDEO CLIP)

BALDWIN: CNN's Ivan Watson joining me from Istanbul, Turkey to talk about this.

And Ivan, you know, in reading in on this story, a lot of people use the word like this is a possible breakthrough. Yet others would be dubious of this move that perhaps -- perhaps it's just a ruse.

IVAN WATSON, CNN CORRESPONDENT: Yes, it's hard to tell what it is exactly right now, Brooke. Certainly, the governments that sign the agreement -- Brazil, Turkey, and Iran -- saying that this should clean up the suspicion in the air between the west and Tehran over its controversial nuclear program.

But already we're hearing from European capitals that this is changing nothing. They are going to go ahead pushing sanctions against Iran over its nuclear program. Basically it calls on Iran to hand over about 25, 2600 pounds of low-enriched, 3 percent enriched uranium, store it in Turkey, being watched over by minders, and within a year's time, that western governments would provide 20 percent enriched uranium to Iran through Turkey in exchange.

And if at any time this deal falls apart, Turkey would return the original 2500 pounds of uranium back to Iran. And again, European governments already saying we're going to continue pushing through with sanctions. And the Iranian saying even though we've agreed to this deal, we're going to continue enriching 20 percent uranium on our own territory.

And that is not a warm -- a signal that's being warmly received, even here in Turkey, which is trying to be friendly with Iran -- Brooke.

BALDWIN: Well, and what about Turkey? I mean Turkey is a NATO military ally of Washington and Europe. What is in it for Turkey to volunteer to store Iran's nuclear fuel?

WATSON: I think the Turkish government has never made it any secrets -- its ambitions to be a big player on -- to the international stage here, to be a peacemaker in the Middle East.

And it's raised eyebrows in the west from Turkey's traditional western allies, because whenever anybody accuses Iran of trying to pursue nuclear weapons, the Turkish government turns around and defends Iran and then says, what about Israel? Why aren't you questioning Israel and its nuclear weapons program?

One little piece of information I got from a U.S. officials who deals with Iranian affairs, this official telling me that Secretary of State Clinton was on the phone Sunday night with the Turkish foreign minister trying to get the details of this deal late at night, working the phones feverishly to get that information.

Turkish government officials are denying a claim that there was any conversation between the two diplomats -- Brooke.

BALDWIN: Ivan Watson for us in Istanbul, Turkey. Ivan, thanks.

It has been a rough go in Oklahoma. Let me show you some of these videos and tell you about this story. Just days after deadly tornadoes touched down, a severe thunderstorm smacked Oklahoma City hall.

You saw some of the hail. It looked like snow in some places. It was so huge. But it also came with quite a smack, smashing some windshields. Look at this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: It's like being in a moving car wreck. Your windows start shattering. We kept going. And as we kept going I mean it just got louder and louder and bigger and bigger. The first thing to go was the sun roof.

(END OF VIDEO CLIP)

BALDWIN: Wow. And check this out. Ominous pictures, this is from Kingfisher County, Oklahoma. But despite what it looks like, there were no reports of tornados with that storm system.

Rob Marciano, so what is that? Just a whole lot of dark clouds? Kind of ominous looking weather but a lot of rain?

MARCIANO: Well, you know, hailstorms can produce those -- the darkest of clouds.

BALDWIN: Yes.

MARCIANO: Because that storm cloud is held not only with water but those big hail balls. And they just block out all the sun. That's what makes the clouds look dark and very, very scary.

(WEATHER REPORT)

MARCIANO: So we'll talk more about that as we progress.

BALDWIN: It is the time of year. And a lot of rain, it looks like, for a lot of people.

MARCIANO: That's -- certainly, in the mid-Atlantic, they're going to get some heavy rain throughout the day today. But that does knock down the pollen. So there is a silver lining in there.

BALDWIN: Silver lining in something. Rob Marciano, thank you, thank you.

MARCIANO: All right.

BALDWIN: The Vatican, trying something a little different, a little new in an effort to distance themselves from the alleged sex abuse cover-ups and from damaging lawsuits. Listen to this. They're saying bishops -- they don't really work for the church.

(COMMERCIAL BREAK)

BALDWIN: All right. Let's get a check of the top stories now. BP saying this latest attempt in stopping the oil flow from that underwater gusher is working. But the company doesn't quite know exactly how much oil is being siphoned. A four-inch pipe pumping that oil from the broken well head way up above to a ship.

And Iran today announced a deal to ship its low-enriched uranium to Turkey. But despite that deal, the Iranians say they will continue to enrich uranium to 20 percent inside their borders. That level is high enough to set off a nuclear reaction.

And heavy smoke from burning tires is blasting through downtown Bangkok. Look at this. Thousands of Thai protesters are defying this government's demands to leave the area. At least 37 people have died in street battles since last Thursday.

CNN NEWSROOM back in a moment.

(COMMERCIAL BREAK)

BALDWIN: Take a look at these pictures. This is a scene outside the space shuttle Atlantis as it orbits earth just one day after arriving at the International Space Station. Astronauts getting -- getting the work. They're taking care of -- you know, just those maintenance chores and setting the stage for a couple more space walks on the missed mission. But really this is so significant because this is the last flight of Atlantis as the space shuttle program winds down this year.

Well, the Vatican is trying out a new strategy to fight a priest sex abuse lawsuit in local Kentucky. You see CNN has now learned that they will be arguing that bishops are simply not employees of the Vatican. So the Vatican shouldn't be held legally or financially liable for their action.

Attorneys in the Kentucky case want to depose top Vatican officials including Pope Benedict.

The Vatican is also expected to deny claims that a 1962 document mandates secrecy in connection with these abuse allegations.

And teachers having their pink slips taken back. The Rhode Island school agreeing to keep them on staff but under a few key conditions.

(COMMERCIAL BREAK)

BALDWIN: Check the clock. About the time for the opening bell. There it is. I love it when we're talking about it right. the opening bell ringing there on Wall Street. Lately, investors in the U.S. have had their eyes on Europe.

Stephanie Elam is in New York for us this morning. And Stephanie, I can imagine, you're upset, definitely having an effect on the numbers on the street. Good morning.

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Good morning, Brooke.

Yes, it's not completely behind us just yet. We were expecting just a modest decline, but actually, we got numbers on the plus side here right now. Those debt problems in Europe are still having a major effect on the value of the euro. In fact, one euro now goes for $1.22, and it has not been that cheap in four years. A weak euro certainly makes a European vacation sound a lot more attractive to a lot of Americans, but as far as American businesses are concern, it's a problem because our goods are now more expensive overseas.

The issue is that $1 trillion bailout we heard about last week and all the budget cuts that came with it. There's a fear that the cuts in Greece, Spain and Portugal will be so big that those countries will fall back into recession. Now, here at home, we actually have some good news from the likes of General Motors. The nation's largest automaker made nearly $900 million last quarter, not huge, but it does mark the company's first profit since 2007. GM has been cutting costs and sales have picked up. So, let's just see what the numbers are doing now.

As you can see right there next to me, we got the Dow on the upside by 31 points at 2,651, Nasdaq better by about .5 percent, S&P 500 also in the plus column right now. Low shares are on the downside right now by about more than 2.5 percent. The retailers earnings beat expectations, but low (ph) said to 2010 is a year of transition, and so because of that, that's probably why we're seeing the stock in the red, but we'll keep our eyes on the numbers, Brooke, and see how we do for the day.

BALDWIN: I know, Europe, debts, a big deal, but Stephanie Elam, you're a girl after my own heart making shopping in Europe, a little bit better for us.

ELAM: I'm just kind of excited about the whole idea of like going over there doesn't mean that you'll go broke --

BALDWIN: I know. I know, Stephanie. Thank you, thank you.

All right. A Rhode Island high school that fired all of its teachers now plans to give them their jobs back. The news comes after Central Falls High School and the teacher's union agreed on some new standard. Nearly 100 teachers were fired because students were underperforming. Now, part of this agreement calls for longer hours and more afterschool tutoring sessions. The teachers will be voting on this deal today.

And a Houston area teacher now apologizing for repeatedly hitting a student in her classroom.

(BEGIN VIDEO CLIP)

BALDWIN (voice-over): Have you seen this video? Look at this with me. This is back on April 29th, caught on a cell phone video. You see that. Sheri Lynn Davis, she's actually the teacher in the blue shirt, the student on the ground, 13 years old. Davis, by the way, fired last week.

SHERI LYNN DAVIS, FORMER TEACHER: I am without excuse for my actions because I know this has been a painful situation, an incident that I truly regret. If I could go back again, I would do things much, much differently.

BALDWIN: While Davis' attorney says the case will be highlighting security problems at that charter school. By the way, the particular incident started after students locked Davis out of her classroom while she was breaking up a fight in that hallway. The boy's family is suing Davis and suing the school.

A California man finally free after serving 16 years for a crime he didn't commit. This is Reggie Cole. He actually walked out of a California prison over the weekend thanking the California Innocence Project and law school students who worked diligently on his case. Attorneys were able to successfully argue that Cole's 1994 murder conviction was based on evidence that was simply fabricated.

JUSTIN BROOKS, CALIFORNIA INNOCENCE PROJECT: It takes again a very special, strong kind of person to make it through 16 years of incarceration and keep fighting for their freedom.

REGGIE COLE, FREED AFTER 16 YEARS: The only way I can think to repay them is to go out to society and prove that I've spent these last 16 years preparing myself to be free.

BALDWIN: Cole's life sentence was actually thrown out last July, but he still had to finish a manslaughter sentence for killing a fellow inmate. He now says he wants to get his GED to study the law.

(END VIDEO CLIP)

BALDWIN (on-camera): Bad times, better habits, we'll tell you about a bit of good news that comes out of the nation's financial crisis. Are you, perhaps, breathing a bit easier these days?

(COMMERCIAL BREAK)

BALDWIN: It turns out that Americans really did learn their lessons from the financial crisis. New numbers are in, and they show that we're paying down our debts and beefing up our credit scores. Let's take a closer look to all these means. Christine Romans is breaking it down for us, and perhaps, Christine, all these months and months of warning, warning, pay down your debt, paid off.

CHRISTINE ROMANS, CNN BUSINESS CORRESPONDENT: Well, some of this is happening not necessarily because you want it to, but because you don't have any other choice, right? We are in the midst of an epic debt purge in this country. And the folks at Equifax have run the numbers for us. And they say the U.S. population is, indeed, becoming more credit worthy in the process of paying down so much of this debt. How much debt are we paying down?

According to Equifax, since October, 2008, we have paid off $626 billion in consumer debt. That is a number they say over there that is very significant. What kinds of consumer debt are we paying down? Home mortgages. 5 percent down. Credit cards, bank cards down some 12 percent to a three-year low in the amount of consumer credit, consumer debt we have right now with our credit cards. The only area where you're seeing us take on more debt, Brooke, is in student loans. No surprise there. Stagnant wages, unemployment. A very iffy economy means people are either staying in school longer or they're having to borrow more money to go to school.

The average consumer risk scores, Equifax calls it, but it's basically their credit score is now 704 and that number has risen ever so slightly over the past couple of years. These credit experts say what they're seeing, more and more people are moving into the low risk part of the spectrum. Meaning, their credit score is rising as opposed to falling off the cliff, as we were seeing a couple of years ago.

So, we are paying down our debt. Whether we like willingly or not, we are paying down our debt. We are taking out fewer credit cards. We are spending less of the amount that's on our credit cards. The limit, we are using less of the limit and that's raising our credit scores. BALDWIN: Christine, that's a big number, $626 billion, and perhaps, we should talk, you know, a piece of this. The story is the banks. Are they still closing credit cards, cutting credit limits? That has to help people some.

ROMANS: You know, yes, and here is the bottom line from Equifax. Maybe 100 million fewer credit cards today. Outstanding credit cards. 100 million fewer today than just a few years ago. That's about a quarter of the credit cards have simply been closed or ended. You're not getting all of those ads and offers in the mail that you were at one time when credit was flowing so easily. And also, they're cutting your limit by about 30 percent.

A $1 trillion of outstanding credit is just not even available anymore because the banks have reeled back. So, when you hear that banks are cutting their limits and they're closing cards, these numbers show they really are with gusto over the past couple of years. And consumers, with gusto, are paying down their debt.

BALDWIN: Wow. Christine, thank you.

The government of Thailand laying down the law, telling protesters to get out of town, get out of the central business district or else. The protesters, guess what, they say no. Showdown in Bangkok. We have a live report coming up next in the CNN NEWSROOM.

(COMMERCIAL BREAK)

BALDWIN: A showdown in Bangkok is really looming now with this estimated 5,000 anti-government protesters are refusing this order to leave the central business district. So, more than three dozen people have been killed in these protests. It started, by the way, last Thursday. Our own Sara Sidner actually spoke with some of these so- called redshirt protesters, but I want to caution you, some of the video you're about to see is graphic.

(BEGIN VIDEOTAPE)

SARA SIDNER, CNN INTERNATIONAL CORRESPONDENT (voice-over): Gunfire and blast, the only signs of life now on this Bangkok streets. Most residents have evacuated the neighborhood, except for a small few.

Why are you still here? It's so dangerous.

I have nowhere else to go, she says. A few seconds later. Not scared at all?

No, I'm used to it, she says.

But many residents of this town are horrified that their city was unrecognizable in some places. Even some of the swankiest hotels show damage from deadly street battles. Then came news that the anti- government renegade general shown here after being shot in the head Thursday had died of his wound. SIDNER: Even some of the swankiest hotels show damage from deadly street battles. Then came news that anti-government renegade general shown here after being shot in the head Thursday had died of his wound.

WENG TOJIRAKARN, REDSHIRT LEADER: All sorry, because they have also one other fight to farther genuine democracy; we are looking at the head of the state. And say to them also we like to overthrow aristocratic system, or bureaucratic system. But you know, they don't have different project all because they then chose violently, but we chose non-violently.

SIDNER (on camera): The government announced that by late afternoon, these protesters must move out of the area because they are terrorist causing loss of life. But the Red Shirts are standing here. They have a huge line up, calling themselves peaceful protesters, not terrorists.

In essence, the stalemate continues. The government is saying, go out, go out now.

UNIDENTIFIED FEMALE: No, no, no. I would like to die if he killed -- I would like him to kill me. I'm not afraid.

SIDNER (voice-over): Even though she has two children who don't understand her resolve. Others weren't so bold moving their children and elderly parents to the ground of a temple, a supposed safe zone in the middle of chaos.

(on camera): Kim, you're only nine years old. Do you know why you are here?

"I am having fun. I can hear music. It is better than staying home", says this nine-year-old girl, an innocent voice unaware of the deadly violence that has gripped the city for days.

(END VIDEOTAPE)

BALDWIN: Wow, Sara is joining me now from Bangkok. Sara, she was nine. I can't believe that, I know it's night there, I know you're talking to some of the Red Shirt protesters. Is there any indication that either the government troops, the protesters will be on the move or they just staying put?

SIDNER: They are on the move in some ways. So in some areas, you're still seeing and listening to loud blasts and gunshots. In other areas, some of the residents appear to have come out. And they are also protesting outside of this so-called protest zone. Lots of loud bangs, we have seen that the protesters often have these fire crackers that they're setting off and making very loud noises. Sling shots.

We did see a picture in the paper of a protester holding a handmade gun. And we also see the Thai military out in force -- fully armed. So the situation does not seem to be changing all that much -- Brooke. BALDWIN: I mean it seems like with a blast, the woman in your piece didn't even flinch. It's almost like some of these people are used to it.

Let me talk about solutions here. I mean, Sara, is anyone trying to negotiate any kind of peaceful resolution?

SIDNER: It's a good question. We went ahead and spoke with one of the Red Shirt leaders who talked about all this, the same person that you saw in the piece. And he said that they are willing to negotiate immediately but only if someone from the United Nations sits down at the table with the Red Shirt protesters and the government and sits as an observer watching these negotiations, not being involved directly in them but watching the negotiations.

The government just a day ago said that it was not interested in having outsiders deal with what it believes is an internal issue. So right now it's a stalemate, yet again -- Brooke.

BALDWIN: Sara Sidner, amazing reporting for us out of Bangkok. Thank you and stay safe.

He is a celebrity chef on the Food Network. But now this man accused of cooking up a murder for hire plot using homeless people.

And a flashback this morning to 1792; on this day, the New York Stock Exchange was founded, 24 brokers in all met under a tree, a tree on Wall Street and agreed to trade with one another and charge that commission. And let's go farther back on the state, rather forward, in 1954, the Supreme Court handed down a landmark decision in the Brown versus Board of Education. You know that case, it effectively ended segregation in our nation's schools. In a unanimous decision the court ruled that segregation violated the 14th Amendment.

And a-one and a-two, conductor and TV host Lawrence Welk died on this day in 1992. He was 89 years old. Welk is best known for his quirky accent, accordion playing and champagne music. His show was on TV for 27 years.

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BALDWIN: Ok. So we're having a little bit of fun with this story. Let's go back in time a little bit. Remember actress Heather Locklear? Remember this?

Oh, yes. That's Locklear as Officer Stacy Sheridan with William Shatner as T.J. Hooker.

And this role made her pretty popular as well.

(BEGIN VIDEOTAPE)

UNIDENTIFIED FEMALE: Did you forget a little thing called a contract that we signed yesterday?

HEATHER LOCKLEAR, ACTRESS: Well, I'm afraid you never read the fine print. It's null & void at my discretion. Don't worry. I'm sure another firm will gobble you up, if they are in the market for embezzlers.

(END VIDEO CLIP)

BALDWIN: And if I may, I think my personal favorite Locklear is the conniving Amanda Woodward in the TV series, "Melrose Place".

Well, Heather Locklear due in a Ventura County, California courtroom today. You see the actress was arrested on a misdemeanor charge for allegedly hitting a No Parking sign last month. Her attorney though says, hang on a second, it's not yet clear who was driving Locklear's black Beemer. Locklear was arrested two years ago on a charge of driving under the influence of prescription drugs.

Well, that volcanic ash cloud back again; causing more trouble headaches for some people in Europe. And it's just one of the stories we're working on for you for our next hour in the CNN NEWSROOM.

Phil Black, over to you, what is your headline?

PHIL BLACK, CNN CORRESPONDENT: Yes, more travel chaos because of that erupting volcano in Iceland. It's shutting down airports across Britain, Ireland and in the Netherlands. I'll have more details in just a few moments.

BALDWIN: And Rob Marciano, tracking some storm systems -- Rob what have you got?

ROB MARCIANO, AMS METEOROLOGIST: We are. We're tracking storms across the plains. Big time hail across Oklahoma yesterday; they get a bit of a break today but tornados possible if not likely on Wednesday; that, plus record temperatures in the Atlantic Ocean. What does that mean for this year's hurricane season? At the top of the hour.

BALDWIN: And Ms. Poppy Harlow, good morning to you.

POPPY HARLOW, CNN CORRESPONDENT: Good morning Brooke. We are watching that oil spill as it continues in the Gulf. The big question is, is it God's way of telling us not to drill anymore. That is what CNN founder and avid environmentalist Ted Turner says it just might be. I'll have more from him coming up in the next half hour.

BALDWIN: Thank you, everyone. We'll check in with you momentarily.

Meantime, the pink slips are flying and a home boy industry is the latest casualty in this economic meltdown, threatening to put gangsters back to work on the streets of Los Angeles.

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