Return to Transcripts main page

CNN Newsroom

People Still Want Their Piece of the American Dream; Miss USA A Wrestler For WWE; D.C. Mayor Gray Released From Prison After Protests; Favre's Accuser Speaks Out; Another Human Skull Found May Be Linked to Long Island Serial Killer

Aired April 12, 2011 - 10:00   ET

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

CAROL COSTELLO, CNN ANCHOR: It is now 7:00 a.m. in the west, 10:00 a.m. in the east, 11:00 at night in Japan, where government officials have put the crisis at the Fukushima nuclear plant on the same level as Chernobyl. They have raised the threat to a category seven. That's as high as the international scale for rating nuclear accidents goes.

Police on Long Island, New York stepping up their search for a serial killer. Investigators found what they think is a human skull along a beach highway. They believe it could be the killer's ninth victim.

And check out what happened at New York's JFK last night. An Air France jetliner clips a smaller Delta Connection plane on the tarmac.

CNN's Jim Bittermann was on the bigger plane.

(BEGIN VIDEO CLIP)

JIM BITTERMANN, CNN SENIOR INTERNATIONAL CORRESPONDENT: A slight rumble and it felt to me like, you know, maybe they hit a rough patch of pavement or something like that. But the pilots immediately stopped plane. And within, I would say, a minute or two, the fire trucks started arriving around the plane.

(END VIDEO CLIP)

COSTELLO: And everything was OK. No one was hurt. The planes were damaged. Port Authority police were interviewing the pilots of both of those planes.

Oil and gas prices keep on climbing. And now, so do concerns that the spiraling costs could derail economic recoveries around the world.

Here in the United States, prices are inching ever closer to that $4 a gallon mark. Just overnight, we saw a bump of another two cents a gallon.

And if Americans aren't feeling the pinch yet, get ready. There is no reason to believe these prices are on the verge of tumbling.

Alison Kosik is in New York. She's -- she's going to take a closer look for us.

How could this tank this economy?

ALISON KOSIK, CNN BUSINESS CORRESPONDENT: Well, first of all, let's talk about gas prices.

Why are gas prices higher?

They're up 33 percent so far this year -- even more than oil prices. And here's why. Oil prices, which are up 20 percent this year already, oil is a main ingredient in -- in gas, Carol. There's actually a lot that goes into gas, including marketing, refining. So there's a lot that goes into that price.

And then there comes the question, you know, why are oil prices up so much?

That's because of supply and demand. That -- that's a really big part of it. We've got the unrest in Libya, though, you know, oil is not -- Libya is not a big oil exporter. We are losing oil more than one million barrels of oil from there every day.

So the question is, where are we going to make up for the loss?

There's also a recovery in the works. Yes, the economy is recovering. There is more demand for oil. In fact, local oil demand rose more than 3 percent last year. We're using more oil, especially from China, as well.

But I'll tell you what. It's really the speculation. That's what's driving up oil prices right now. Remember, oil is a really big investment tool. Right now, there's what's known as a risk premium factor in oil prices right now. And as long as there's unrest in the Mideast, it's really going be the excuse for investors to jack up the price of oil through this speculative buying.

Now, there's also a big worry among investors that supply is going to be strained in a bigger way if all that unrest in Libya spreads to even bigger oil exporting nations, especially Saudi Arabia.

And yet there's one more thing that goes into why we're seeing oil prices go up and then, in turn, making prices go up. We've got the weak dollar in play. It's another factor in this speculation, because oil is priced in dollars, Carol. So it makes the investment cheaper. And it's seen as a good investment right now, with the economy on shaky ground.

And, of course, with oil prices up, making gas prices higher, it means you and I are going to be able to spend less on other things in the economy -- Carol.

COSTELLO: That's right.

Alison Kosik at the New York Stock Exchange. Thank you. More details now for you on the last minute budget deal that averted a government shutdown. If you're wondering exactly what programs will be slashed to save $38 million, here are some of them.

The federal budget for food and safety inspections would be whittled down by about $10 million. Proposed cuts to highway construction add up to nearly $3 billion. And if approved by Congress later this week, the Department of Homeland Security would receive nearly $800 million less in funding. High-speed rail projects would also slashed by nearly $3 billion.

So that takes care of 2011's budget.

Let's move on to the next big budget thing and that would be the debt ceiling. As you've heard, the country will reach its debt limit of $14.3 trillion by May 16th. And if Congress does not raise the limits soon, the U.S. could default on its loans. And that is not good.

So the White House says raise it now.

(BEGIN VIDEO CLIP)

JAY CARNEY, WHITE HOUSE PRESS SECRETARY: The consequences of not -- of failing to raise the debt ceiling would be Armageddon-like in terms of the economy on -- the impact on interest rates, on job creation, on growth would be devastating.

(END VIDEO CLIP)

COSTELLO: But the president is dealing with a bit of what some are calling hypocrisy.

Dan Lothian joins us from the White House to explain -- Dan.

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: You know, history has a way of coming back and -- and biting you, you know?

And this is one of those cases, because the president, back in 2006, when he was then senator from Illinois, the president was George W. Bush. And Mr. Obama then voted against raising the debt limit, saying at the time that, quote, "It was a failure -- a leadership failure" and that increasing the debt limit would weaken the US.

And now, the president finds himself in the same position of asking Republicans to raise the debt limit, something the Republicans simply don't want to do, because they want more spending cuts.

And, you know, what's interesting is that the White House -- something that you don't typically hear from the White House, whenever someone will say, hey, listen, are you flip-flopping?

Has the message changed here?

They're now saying that the message has changed, that the president made a mistake back in 2006. Take a listen.

(BEGIN VIDEO CLIP)

CARNEY: He realizes now that raising the debt ceiling is so important to the health of this economy and the global economy that it is not a vote that, even when you are protesting an administration's policies, you can play around with.

(END VIDEO CLIP)

LOTHIAN: And the question now is whether or not there can be any compromise at all, as you saw how heated the debate was trying to get that budget last week. And that was just the warm-up act to this. And, clearly, the president, what he wants is a clean vote on this, essentially no spending cuts attached.

Republicans are saying that they're not supporting anything that does not have spending cuts in there.

So it will be interesting to see if there can be any compromise in order to avoid what the White House is calling Armageddon.

COSTELLO: Well, they did it once. Maybe they can do it again.

LOTHIAN: We'll see.

COSTELLO: Dan Lothian live at the White House.

The mayor of Washington, DC got out of jail just about nine hours ago. Capitol Hill police arrested Mayor Vincent Gray and several DC council members yesterday for blocking a street and refusing to leave. This is all about the 2011 federal budget lawmakers agreed to over the weekend. Congress has the final say over D.C.'s budget and its laws. As part of the federal budget compromise, DC will not be able to use city funds to pay for abortions for low income women. Mayor Gray feels like Congress and the president used the city and its people as a political chip.

(BEGIN VIDEO CLIP)

MAYOR VINCENT GRAY (D), WASHINGTON: But we've become a political pawn in -- in the game around this budget and around other ways in which this country is run. We ought to be left to make those decisions. Our budget ought to be approved by the people of the District of Columbia. And we have demonstrated our ability to do that.

(END VIDEO CLIP)

COSTELLO: Keep in mind that Washington, DC does not have full representation on Capitol Hill. A cease-fire proposal offered to opposition leaders in Libya has been rejected. Under the African Union plan, Gadhafi would have agreed to stop all hostilities and allow international forces to enter Libya to help keep the peace. But rebel levers say -- but rebel leaders say any plan that does not include the removal of Gadhafi is unacceptable.

So let's go beyond the headlines now in Libya to focus on global reaction to what's fast becoming a stalemate.

Zain Verjee live in London with more on that -- Zain, hi.

ZANE VERJEE, CNN CORRESPONDENT: Hi, Carol.

Hey, Carol, let's start with the national -- at the -- in the United Arab Emirates. This is what their headline is -- "Africa's Difficult Proposal for Peace in Libya." It says: "The end game in Libya remains unclear, but it's increasingly apparent that a negotiated solution will be forged only when Colonel Gadhafi agrees to cede power."

Here in the UK, this is what "The Independent" is saying, Carol. The headline is: "African Union Cease-Fire Talks Rejected by Rebels while Dictator Remains." "In practice," it says, "Libya has broken into two halves and this partition might go on for a long time because of the stalemate in the ground fighting."

Just a little bit of a flavor -- Carol.

COSTELLO: Yes. Sadly, it sounds familiar, doesn't it, because, you know, I guess a lot of analysts said that it was going to come to this, a stalemate. And maybe it's come to that now, who knows?

I'd like to talk about this "Newsweek" article, because it is written...

VERJEE: Yes.

COSTELLO: -- in the words of Moammar Gadhafi's nurse.

VERJEE: Yes. And it is a fascinating read, Carol, let me tell you. She is saying that she had a nickname for him. All Ukrainian nurses would call him Papik. All the Ukraine nurses would call him Papik. That means "little father" in Russian.

She also went on to say that, you know, he does have these weird habits where he needs to change his clothes, she said, multiple times a day. She insists that she was not his lover and that he only liked to listen to Arab music on an old cassette tape recorder and on nothing else.

Let me also just share with you what she said about when he went to Africa: "When we drove around poor African countries, he would fling money and candy out of the window of his armored limousine to children who ran after our motorcade. He did not want them close for fear of catching diseases from them."

The article also goes on to say how he gave her and all the staff these gold watches with a picture of -- guess who -- inside them. And they could go around with these gold watches in Libya and kind of get anything they wanted, because they had these special ones from Moammar Gadhafi. She also says: "Papik will probably never forgive me for betraying him," but she said she had to do what she had to do. She's pregnant. She had a Serbian boyfriend and Papik, she says, wouldn't have approved of it.

COSTELLO: I'm still getting over the nickname and what it means. But, sadly, I'm so intrigued by that -- by what you've told me, that I'm going to go read "Newsweek" after the show is over.

VERJEE: It's a great read, you know, and I mean and she also says that it was a total myth that he slept in a -- you know, that tent all the time. She said he only used it for official meetings, but he didn't always sleep in a tent. Papik.

Papik, yes. Yes.

COSTELLO: Zain, thank you.

VERJEE: All right.

COSTELLO: There are calls for calm today in the Ivory Coast after the dramatic arrest of the country's former president. We'll have a live report for you.

And the space shuttle program has been the workhorse of the U.S. space program. Later today, NASA will announce the final resting places of the retiring space shuttles. We'll preview who the -- who could be getting a piece of space history.

(COMMERCIAL BREAK)

COSTELLO: Now for the latest on the Ivory Coast.

The country's new president is calling for calm. The United Nations is warning there should be no retaliation against supporters of the former president. The ex-president, Laurent Gbagbo, was arrested yesterday. His refusal to step down spurred a bloody conflict.

CNN's Dan Rivers is in the capital right now.

And -- and he brings us up to date.

What's happening there now?

DAN RIVERS, CNN CORRESPONDENT: Well, Carol, we've just been out on the streets. We're sort of touring the area that we're in. It does remain tense and pretty lawless, it must be said. We've seen at least three different charred bodies on the streets and truckloads of republican forces loyal to the current president, Alan -- Alassane Ouattara -- touring the area, most of them armed with sort of, you know, small weapons, AK-47s and so on.

They're clearly trying to impose security in this part of the city. We're not sure what the situation is elsewhere. But there's plenty of evidence of extensive looting here and lots of destroyed shops and businesses that we've seen.

So there's going to be an enormous clean up job here, if nothing else. And this whole situation is rapidly turning into a humanitarian crisis, as well, with food shortages and water shortages, shortages of gas as well in many parts of the city.

So just because Laurent Gbagbo has surrendered -- he's come out and asked his side to lay down their arms -- I don't think -- I think it's too early to say yet that this is completely over.

COSTELLO: I understand.

Dan Rivers live from Ivory Coast.

Japanese officials have put the crisis at the Fukushima nuclear plant on the same level as Chernobyl. They've raised the threat from a category five to a category seven. That is as high as the international scale for rating nuclear accidents goes.

Jacqui Jeras has more details on these ratings. I don't think many people were surprised by this.

JACQUI JERAS, CNN METEOROLOGIST: No.

COSTELLO: And they probably wonder why it wasn't raised to a seven before.

JERAS: Right.

COSTELLO: But what exactly does that mean anyway?

JERAS: Well, they said they've got new information now in being able to read some of these levels. And that's why they've raised it up. They don't think the threat has really changed. It's about what it's been. So no new things have happened at the plant to raise this level. They just have more information as to where it's at.

Now, what is the scale that we're talking about?

Well, it's called International Nuclear and Radiation Event Scale. And basically, this is a worldwide scale that's used to provide information to the public so you know how serious this is in terms of your safety. And it goes from level one and goes up to seven.

And as you go up in each category, the threat level raises tenfold, OK?

So going up two levels is very significant.

Now, level five, where we were at before, that was on par with what we -- you know, the Three Mile Island incident that happened in 1979. And now they're saying that Fukushima is up there with 1986. Now, what kind of consequences are there as a result of this?

Well, level five, according to this Event Scale, they call it an accident with wider consequences. It has a limited release of radioactive material. Several deaths can occur at a level five and severe damage to the reactor core.

Now, I'll advance this for you and take you to what a level six is. They consider this one a serious accident with a significant release of radioactive material. And they have to do counter measures, basically, to help counteract what's been released. And number seven, that's the -- that's the top one there, considered a major accident here, with a major release of radioactive material, widespread impact on health, as well as the environment. And it will be long-term, Carol, that they're going to have to counteract the accident that has already happened here.

COSTELLO: You've got to wonder how long it will be until they fill those -- those nuclear facilities with cement and sand and just call it a day?

JERAS: Well, that's what that they in Chernobyl. They had to take the cement and they basically buried everything and sealed it up and covered it up. And, ultimately, that's very likely what will happen here.

COSTELLO: Jacqui, thanks.

It's the end of an era at NASA. The space shuttle program shuts down this summer. Later this morning, a lot of museums will find out if they've landed a piece of history.

(COMMERCIAL BREAK)

COSTELLO: As you know, NASA is phasing out its space shuttle program this summer. And today, we found out where those retiring shuttles will be heading. This means that space exploration as we know it is changing.

And the astronauts on board the International Space Station talked about that earlier today on CNN's "AMERICAN MORNING" from 220 miles above the Earth.

RON GARAN, NASA ASTRONAUT: Yes, of course, kids can still dream of becoming astronauts. And, you know, hopefully, you know, what we're trying to do is, you know, NASA and the other government agencies want to get out of the business of low Earth orbit. And we want to go beyond that. We want to explore further and further into the solar system.

And that's what, you know, the big organizations, the big governmental organizations do best. They can push the engine of the envelope. And that's what I -- I see, you know, the astronauts in the future doing.

(END VIDEO CLIP) COSTELLO: Well, so what happens to all those retiring shuttles?

Dozens of museums across the country are hoping to land them.

John Zarrella live at the Kennedy Space Center.

So who's in the running?

JOHN ZARRELLA, CNN CORRESPONDENT: Yes, well, you know, Carol, we're here at Kennedy because NASA Administrator Charlie Bolden is going to be at The Kennedy Space Center later today, in essence to commemorate the 30th anniversary of the very first space shuttle flight, April 12th, 1981. John Young and Bob Crippen got on board Columbia and left the Earth for two days in that very first space shuttle flight.

Now, because he's coming here to Florida, there's a really good chance that here, where we are, at the visitor complex, that they will be one of the places that gets one of these space shuttle orbiters, perhaps Endeavour, which flies later this month.

Carol, the way it looks right now, at least everything we've heard, is that Discovery has been promised to the Smithsonian. So they will get Discovery, which is already done flying.

The Air Force Museum in Dayton, Ohio would like to get Atlantis, because Atlantis flew a lot of secret Department of Defense missions back in the -- the 1980s and '90s.

And then Endeavour might come here.

Now, the Smithsonian already has Enterprise, which was the shuttle used to perform those first drop tests back before Columbia ever flew, to make sure they could actually pull this off. Enterprise could go to, say, Seattle, which is bidding, perhaps New York, the Intrepid Museum, which has put in a bid, Houston, the Johnson Space Center. There are more than two -- there are more than -- almost two dozen facilities around the country that have put in bids for these orders. And the problem is, there's only a few to go around. So it there will be a -- a few people very happy and a lot of people very sad at the end of the day today.

COSTELLO: John, I want you to stick around for this next story, because you're a space guy. You're an expert in these things, because you've talked to a lot of people. I'm sure you've heard about this.

ZARRELLA: Yes.

COSTELLO: The FBI has posted more than 200,000 documents to the vault, which is an online repository of case files. Among those generating the most interest, a 1950 memo send to FBI Director J. Edgar Hoover regarding a supposed UFO landing in Roswell, New Mexico three years earlier. An agent passed along this tantalizing bit of information. : "There were three so-called flying saucers about 50 feet in diameter and each one was occupied by three bodies of human shape, about three feet tall. They were dressed in a metallic cloth of very fine texture."

What happened to those human like short people, John?

ZARRELLA: Well, you know, let me tell you, I was in Roswell and I know...

COSTELLO: I mean it's in the files.

ZARRELLA: Well, you know, I was in Roswell to do this story years ago. And this is what I heard. We talked to a man who was with the Air Force back then. And he was in the public affairs department. And he said that when they got word and there were all these sightings of this craft crashing out there in New Mexico, that the Air Force put out a statement, a press release that said that a spacecraft, a flying saucer had crashed in the desert out there.

Well, within an hour, they rescinded that press release. And what I was told was that the colonel called and said that, no, it was a weather balloon.

And so the way it was put to me is when the colonel calls and says it's a weather balloon, it's a weather balloon. So that's what this story is.

But yes, all those stories are absolutely, you know, true what you're saying, that that's what they reported, that's what they believed. They were all brought to a hospital there. The -- and, apparently, a couple of these aliens survived the crash, was the story.

Now, I've got to say, you know, Carol, if all that was true, I mean what a -- do you -- do you know anybody in this country that can keep a secret that long?

That would be one heck of a cover-up, one big secret to keep.

COSTELLO: Hey...

ZARRELLA: I just...

COSTELLO: Hey...

ZARRELLA: I don't think it's possible.

COSTELLO: Hey, but Watergate, like, what -- now I'm going to (INAUDIBLE). I can't but they kept that secret a long time, who spilled the -- was the leak in Watergate.

ZARRELLA: Well, you know, they also say...

COSTELLO: Deep Throat.

ZARRELLA: -- a lot of people say, the conspiracy theory -- that and the conspiracy theorist also say man never really landed on the moon, that that was all staged out in the desert.

Now that would be another cover-up. I don't think they could pull that off, either.

COSTELLO: I don't think you're going to convince some people, John.

I'm just saying.

Thanks, John.

We appreciate it.

We're just a few weeks away from the royal wedding. Prince William and Kate Middleton will marry at Westminster Abbey. And for those of us who have not yet received our invitations, Mark Saunders is -- will help us feel like honored guests.

First up, the welcome.

First up, we're hearing that Kate mania is picking up and she even has her own doll now.

MARK SAUNDERS, ROYAL BIOGRAPHER: Actually -- actually, that's true. Yes. About as daft : ") as you're going to get. Kate mania -- I saw it for the first time yesterday in Darwin, Lancashire, up in the north of England. Admittedly, the crowd was somewhat bigger than Kate has been used to. There were maybe 4,000 or 5,000 people there.

But she looked absolutely stunning. And it really was Katie mania. The crowd just shouted out her name, the children so excited. And we heard screams for the first time, as well.

I think it's all taken off -- Carol.

COSTELLO: I thing so, too.

You know, I -- there are rules for people who are actually attending the wedding, protocols.

And just lay out some of those protocols for us, will you?

SAUNDERS: Yes, there's a bewildering set of rules, I'm afraid.

The first one is guests must arrive at least 20 minutes before the ceremony begins at Westminster Abbey. That -- and you know how we all try to avoid the commercials at the cinema?

Well, there's not going to be any of that. You're going to have to sit through everything before it all kicks off.

Secondly, wearing cream or white -- apparently the guests are being told not to do that, as it may clash with Katherine's wedding dress. I'm thinking possibly, are they letting in -- letting us in on a bit of a secret here?

So we now know the color.

COSTELLO: Oh. SAUNDERS: My favorite part is the queen. When you meet the queen, she holds out her hand first and you shake it. You call her, your majesty. And after that, you refer to her as ma'am. That is ma'am as in spam.

Now, every time I have met female royalty, I've called them mom, as in om. So, obviously, I've been doing it wrong.

Uniform morning suits must be worn. If it's not uniform, obviously, there will be a lot of military uniforms. With morning suits, you mustn't wear your hat in church. Since I never wear a hat in church, I can't think of anybody that would.

COSTELLO: No.

SAUNDERS: But apparently they've got to be told not to.

And my most -- my favorite, Carol, is the cup and saucer. I have one here. Now, according to the -- to the rules, this is the cup and this is the saucer. You drink from the cup.

COSTELLO: Oh, they have to tell you that, too?

SAUNDERS: Yes, it's -- it's -- it's all written down. Knives and forks, obviously, we all remember the classic scene in -- in "Pretty Woman," where Julia Roberts is explained how to use a knife and fork. You work from the outside in. And champagne glasses, hold the champagne glass by the stem.

COSTELLO: OK.

SAUNDERS: Apparently they also need to be told that.

COSTELLO: OK. I'm listening to you. I don't have a saucer, but thanks, Mark.

We appreciate it.

SAUNDERS: Thanks, Carol.

COSTELLO: Housing prices have plunged. The real estate market is a nightmare. But most Americans still say buying a home is the best investment you can make. We'll explain why.

(COMMERCIAL BREAK)

CAROL COSTELLO, CNN ANCHOR: Rotten and ugly. That sums up just about every housing story we've told you, but that has not stopping people from wanting their piece of the American dream. Stephanie Elam is here. And Stephanie, there are still many believers out there. The question is why?

STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Yes, that is something -- I would imagine, Carol, if you could go ask homeowners the reason why they went out and still purchased a home or if they would do it again, it has to do with the fact is they like to know there's a place, a corner on this earth that still belongs to them. And for some reason, that just gives people comfort.

But if you take a look at the numbers, that really doesn't sync up if you look at what we've gone through in the housing market lately. Take a look at this: 81 percent believe that homeownership is the best long-term investment. This is how Americans feel, according to a survey done by the Pew Research Center. Eighty percent say that their financial goals besides owning a home also include living comfortably in retirement. What was interesting about this too is that 40 percent of homeowners who actually do own their homes now still believe in the power of home ownership. Well, if you take a look at renters, only 31 percent said that they feel that way.

Obviously, it's no surprise that folks that are 65 and older also feel like homeownership is the way to go. But when you take a look at this, all of this is all despite the longest and most severe drop in housing prices we've seen since we can remember. If you take a look at it in 2007, the median price for a home was around $219,000. Now it stands at just $156,000. That's a steep drop of 29 percent.

So, as you can see, there's a bit of a disconnect. But I think for a lot of folks growing up they were told by their parents, you know, you've got to own. Owning is the way to go. And so that idea of home ownership sticking with a lot of people. And I think also because they're long term. They're long-term investments, so people feel like eventually it will come back, even if it takes three to six years.

COSTELLO: Well, even I feel that way. I hear stories, you know, stories about foreclosures all the time. And I hear what you say to me everyday about the housing market. But I once talked to a housing expert at the height of the recession, and he told me the best reason to buy a house is because you want a home, your own home. Period. Don't buy it because --

ELAM: That's what should drive you. Yes.

COSTELLO: Right. Don't let that drive you because it's likely you won't make a huge amount of money anymore.

ELAM: No, it's really about - just, I really think a lot of Americans feel the need to just know that this is their place on the planet that belongs to them. And there's some comfort out there for a lot of people. I'm like you. I feel the same way. Home ownership gives me a sense of security despite all that's gone on. And most people plan to live in their homes for 10, 15, 20 years. So, they don't plan on big change like that. And so therefore, it doesn't matter about what's going on with home values.

COSTELLO: Exactly. So, if you're going to buy a home, plan to stay in it for a good, long time. And then you will get a payoff on your investment.

ELAM: Don't try to flip it. None of that flipping stuff.

COSTELLO: No. That's out. We're going to be talking about Miss USA because I'm sure you heard, being in touch with the cultural top issues person that you are -

(LAUGHTER)

COSTELLO: -- she's now wrestling. Miss USA is now a potty mouth wrestler for the WWE.

ELAM: She's shaking things up. She's shaking things up a lot. Like, this is not the beauty queen of yore, not when I was growing up watching those old-school shows. She's quite different. I'm surprised they're let her do it.

COSTELLO: I know. I thought they only wanted world peace.

(LAUGHTER)

COSTELLO: We're going to talk to her when we come back. Stick around.

ELAM: All right.

COSTELLO: It is half past the hour, and time for some interesting stories. Actor Benicio Del Toro has a new role to prepare for: fatherhood. He's expecting his first child with Kimberly Stewart. She is the daughter of Rod Stewart. A publicist says the two are not a couple but are committed to the impending arrival.

Gas prices inch up a couple of pennies overnight. And the national average now just 21 cents under the $4 mark. The breathtaking climb is rattling the nerves of economists. They say gas and oil prices could derail the global recovery that's slowly taking root.

In San Francisco, two rival baseball teams are united by tragedy. Players for the Dodgers and Giants gathered around the Giants' infield to honor local fan Brian Stowe. He was wearing Giants garb and was beaten into a coma outside of Dodgers' stadium.

(BEGIN VIDEO CLIP)

JEREMY AFFELDT, SAN FRANCISCO GIANTS: We ask you to respect that rivalry and you respect each other as fans.

But when the last out is made, that rivalry ends on the field.

(CHEERING)

(END VIDEO CLIP)

COSTELLO: Fans contributed money to a trust fund established for Stowe and his family. Stowe remains in the hospital and it's possible he has brain damage.

Police are now examining a human skull that may be the ninth set of remains links to a possible serial killer. CNN's Allan Chernoff is in Jones Beach, New York on Long Island where the search for, I guess more bodies continues. And they still don't have a suspect. Allan, what more are you learning?

ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: Carol, this is a search for a serial killer that police believe is targeting prostitutes. Earlier this morning, police were out in helicopter searching overhead, seeing if they could find any additional evidence. And there have been some very, very grizzly findings here on this barrier island of about 15 miles east of New York City.

Where I'm standing right now is a beach that many New Yorkers frequent, but to the east of me, along this barrier island, it's absolutely desolate and in your imagination you can just think, well, this is certainly would be a place where somebody perhaps might drop a body.

Well, yesterday, there was a finding, first of all. A set of bones. And then several hours later about a mile-and-a-half away, the finding of a skull. So, that is possibly the ninth and maybe even the tenth victim. We absolutely don't know whether or not these were victims of this serial killer.

Just over the past two weeks four other bodies found in adjoining Suffolk County. And back in December, there were four additional bodies. So, eight thus far added to what was found yesterday. The four original findings, they have been identified women working as prostitutes who had been advertising online on Craigslist. But the woman whose disappearance almost a year ago, Shannen Gilbert, her disappearance started the whole investigation, she has not yet been found, not yet been identified. And so police continue their search, continue their investigation to try to crack this case. Carol?

COSTELLO: Hopefully they will soon. Allan Chernoff, live on Long Island. Thanks so much.

Miss USA is looking yet for another title.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Miss USA, you got one more left in you? Are you tough enough?

(END VIDEO CLIP)

COSTELLO: But the smackdown and smack talk is causing quite a controversy. Rima Fakih joins me next to explain.

(COMMERCIAL BREAK)

COSTELLO: She is the reigning Miss USA and she's no stranger to a little controversy. But her appearance on a new reality show is raising eyebrows.

(BEGIN VIDEO CLIP)

RIMA FAKIH, MISS USA: Today was the first time we took bumps. And I didn't just take bumps. I took body slams as well.

UNIDENTIFIED MALE: How's that mat feel, Miss USA? Give her another one.

(END VIDEO CLIP)

COSTELLO: I'd say ouch. Rima Fakih joins me now in the NEWSROOM. Rima, welcome.

FAKIH: Thank you so much.

COSTELLO: This isn't the usual thing you see from Miss USAs. I mean, what prompted you to want to do this? Like take part in a reality show and be a WWE wrestler?

FAKIH: You know, a lot of individuals find it really hard to believe that I am a wrestling fan. And I guess I'm really thankful to be given the opportunity, and I was probably the first Miss USA to take some time off from the crown, travel to California and be part of this show. So, I have to thank the Miss Universe Organization for allowing me to do so.

COSTELLO: The reason this is raising some eyebrows is you were widely praised for being the first Muslim-American to become the Miss USA. We're seeing a tame clip right now, but you've let some curse words fly during the reality show, and you exhibited some -- well, less-than-attractive behavior. I've seen you throw water in the face of your opponents. And some people might say this isn't the best example to set.

FAKIH: Well, you know, I have to say a lot of people probably don't see everything. You're putting one week into one hour. And a lot of the foul language that was used in the show, you know -- definitely there's no excuse and I apologize, but you don't understand the attacks I had to face.

The producers even pulled me aside when I got there and they're like, you do understand you're going be the underdog? You are a beauty queen, you have a stereotype. They're going to be like, what is she doing here? They're going to want you out of here. They're going to go after you. Even the trainers. And it's just basically as good as you get. It's either fight hard or go home.

COSTELLO: You're not going to curse anymore, right? Because I know you did apologize for that.

FAKIH: You know, I -- no.

COSTELLO: I actually looked it on the Miss USA Web site. And this is what it says about contestants: "These women are savvy, goal- oriented and aware. They strive to advance their careers, personal and humanitarian goals, and as women who seek to improve the lives of others." So, how is what you're doing now improving the lives of others?

FAKIH: It's very simple. And I think that the fact that you won up when I first won Miss USA, I was the first Arab-American. Being the first Arab-American, I was told multiple times the fact I'm Muslim. You can't do this. You are not the real Miss USA.

And it's the same situation. You can't be tough because you're Miss USA. In life, you're always going to have your supporters. You're going to have your detractors. At this point, I'm going to do the same thing I did at the beginning of Miss USA. I said I'm going to be Miss USA. At the end of my reign, they're going to see why.

Same thing here. At the end of this show, when the season is over, you're going to see exactly why I did this. And going back to the Miss Universe organization, they really promote personal growth, being fearless, and breaking barriers. And I think that's what I'm doing on "Tough Enough."

COSTELLO: Well, I wouldn't want to be thrown around like, so you're breaking a barrier in my book.

FAKIH: It hurts, I just have to tell you. Even though yesterday I was watching the show and I'm like, oh, I remember that! Like I can still feel it in my back.

COSTELLO: But just say darn instead of the other words, and it will be fine. Rima --

FAKIH: Going back to that point, I just want to tell everyone. You don't see everything. You don't see the other attacks. And the last thing I'm want to say is I'm not going to let anyone disrespect my mother.

(LAUGHTER)

FAKIH: Or my crown.

COSTELLO: Thank you, Rima. You go, girl.

FAKIH: Thank you.

COSTELLO: The clock is ticking toward the next presidential election, and that meaning growing criticism of the incumbent. Coming to President Obama's defense, his sister.

(BEGIN VIDEO CLIP)

MAYA SOETORO-NG, PRESIDENT OBAMA'S SISTER: I think it's a shame, and I think that my brother should definitely be president for a second term. And that's really all I have to say about it.

(END VIDEO CLIP)

COSTELLO: But she does say more. Stay with us for more of her interview with CNN's Piers Morgan.

(COMMERCIAL BREAK)

COSTELLO: Washington, D.C.'s mayor is out of jail after his arrest during a Capitol Hill protest. Mayor Vincent Gray was among 41 people arrested as they demonstrated against some cuts in the federal budget deal. CNN's political producer Shannon Travis is here with much, much more on this story. Hi, Shannon

SHANNON TRAVIS, CNN POLITICAL PRODUCER: Hey there, Carol. Like you just said, the mayor of Washington is supposed to enforce the laws, not break them. But that's what Mayor Vincent Gray allegedly did. He said in this budget deal that avoided the government shutdown last week that the city was thrown under the bus.

You just had him -- we had him on CNN the last hour. Let's step back for a minute and explain to our viewers what's going on. Washington, D.C. doesn't have final say over its budget and its law, Congress does. In addition to that, they always argue we don't have full representation in Congress.

So, in this budget deal, what happened in this budget deal was, if it's actually voted on, the district will not be able to spend any of its tax dollars that it raises to provide abortions for low-income women. It wants to spend money on a needle exchange program that they say will stop HIV infection rates. They wouldn't be able to do that. And there are some school vouchers as well.

The mayor of D.C., Vincent Gray, who was as you just explained, was arrested and released this morning said that's not fair, that Washington, D.C., should have the right to say how money is spent in Washington, D.C.

But he'll be up against a brick wall with people, with Republicans who control the House. Take a listen to at something that Representative Michele Bachmann said just last night.

(BEGIN VIDEO CLIP)

REP. MICHELE BACHMANN (R), MINNESOTA: We're the one who decides how the money gets spent. And Barack Obama gets no money, zero money, unless we give it to him. And so he can be held hostage -

(END VIDEO CLIP)

TRAVIS: So, it's that kind of thinking from Michele Bachmann and other Republicans in the House that are inflaming the Washington, D.C., mayor. And you may remember, Carol, and our viewers as well that the D.C. delegate, Eleanor Holmes Norton last week, said it's time for Washington, D.C., residents to tell Congress to, quote, "go straight to hell."

COSTELLO: I know. I remember that. Mayor Gray is not so happy. Another thing to point out, Washington, D.C., is a largely Democratic city. What? 98 percent of voters voted for Barack Obama?

TRAVIS: That's right.

COSTELLO: Of course, the thing here is it's because Planned Parenthood wasn't defunded, then Washington, D.C., sort of paid the price for that in getting their abortion funding blocked for low- income women.

TRAVIS: That's right. The mayor on our air says that he believes Washington, D.C., was the political pawn. That because, as you just mentioned, that Planned Parenthood wasn't defunded, that Democrats instead - or the lawmakers instead caved and used Washington, D.C., restricting this money for abortion for low-income women, they used Washington, D.C. as a political pawn according to mayor.

COSTELLO: It's been going on forever. So, I don't think it's likely to change. But Mayor Gray is hoping so. Shannon Travis, thank you.

We'll have your next political update in one hour. And a reminder, for all the latest political news, go to our Web site CNNpolitics.com.

Remember the Brett Favre texting scandal? How could you forget? One voice actually has been quiet during the whole traumatic debacle until now. Favre's accuser is speaking out. We'll hear from her, next.

(COMMERCIAL BREAK)

COSTELLO: Beyonce is giving the first lady a boost in her attempt to tackle childhood obesity. The Grammy winning pop star is releasing a new video called "Let's Move, Flash Workout." It's a rewritten version of her hit "Get Me Body." And it will be released at dance-ins and middle schools across the country on May 3rd. So, don't be surprised when your child starts dancing.

The woman at the middle of the Brett Favre texting scandal is telling her story. Jenn Sterger claimed Favre sent her x-rated pictures voice mails and pictures back in 2008 when Favre was the Jets' quarterback and she was the Jets' sideline reporter. Sterger said she never met Favre, never gave out her phone number, and is not trying to make a dime off the situation.

(BEGIN VIDEO CLIP)

JENN STERGER, FAVRE'S ACCUSER: Everybody knows, when it's out there in the public like, there's this perception of you that people automatically start to think, "Oh, she's a gold digger, she's a home wrecker." I'm none of those things.

(END VIDEO CLIP)

COSTELLO: Favre has admitted to leaving the voice mails but not to sending those inappropriate pictures of a certain part of his body. The league did fine him $50,000, claiming he had not been candid during his investigation.

The clock is ticking toward the next presidential election, and that means growing criticism of the incumbent. Coming to the president's defense, his sister. Hear part of her interview with Piers Morgan in the next how of the CNN NEWSROOM. (COMMERCIAL BREAK)

COSTELLO: Taking a look at stories making news today. At noon Eastern time, the president and vice president will speak at a White House ceremony, kicking off their wives' national campaign to support and honor U.S. troops.

Also this afternoon, NASA will announce the future homes of the retiring space vehicles. The space shuttle Discovery is going to the Smithsonian in Washington. But the Enterprise, Atlantis and Endeavour, they're still up for grabs. Twenty-one museums have expressed interest in giving them a loving home.

And also this afternoon in Charleston, South Carolina, people will gather together to mark the moment the first shots of the Civil War were fired 150 years ago today. Confederate troops fired on Union forces at Fort Sumter, triggering the deadliest conflict in U.S. history.

And now it's time for Suzanne Malveaux. The NEWSROOM continues.

And I'll join you to talk about gas prices very soon.

SUZANNE MALVEAUX, CNN ANCHOR: Oh, can you imagine how high these prices are? It costs so much to fill my tank now.

COSTELLO: I know. Some people are saying maybe $5 by summer. Ooh, ouch.

MALVEAUX: Maybe we'll start biking to work. Huh?

COSTELLO: Yes. It will be better for us.

MALVEAUX: We're not going to bike to work.

COSTELLO: No.

MALVEAUX: All right. Thanks, Carol. See you soon.