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American Morning

Sources: Commercial Chopper Shot Down in Iraq; Bolton Nomination; Electing Benedict XVI

Aired April 21, 2005 - 07:29   ET

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


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


BILL HEMMER, CNN ANCHOR: I think the band took the day off today, don't you, Carol?
CAROL COSTELLO, CNN ANCHOR: The music is stopping.

HEMMER: We're like little dogs actually. We don't respond unless we hear music.

COSTELLO: Exactly. So, we can't say anything else. That's it. We're going home.

HEMMER: Hey, welcome back, everyone. I'm Bill Hemmer. And good morning here.

COSTELLO: I'm Carol Costello, in for Soledad O'Brien today. Welcome to AMERICAN MORNING.

It looks like the heat under House Majority Leader Tom DeLay may be coming to a boil. We'll find out why his own party is offering to investigate him now.

HEMMER: Also, all of the secrecy around the conclave and how the cardinals elect the pope. We're hearing now details of how Cardinal Ratzinger won the election and even how Pope John Paul II may have helped swing it his way. Also, some of the cardinals are talking, too, talking about how he reacted inside the Sistine Chapel, how the other cardinals reacted around him. And there's one report that says a cardinal says that the chimney was actually backed up. There was smoke coming back in.

COSTELLO: There was smoke in the Sistine Chapel.

HEMMER: Who would know it's true or not, because of all of the secrecy vows. But anyway, that's out there, too.

So, back to the headlines and Valerie Morris is back with us again today.

How you doing, Valerie? Good morning.

VALERIE MORRIS, CNN ANCHOR: I'm doing well. Good to see you, Bill and Carol.

HEMMER: Nice to see you.

MORRIS: And "Now in the News." A commercial helicopter has been shot down in Iraq. The chopper went down between Baghdad and Tikrit.

More now on this developing story with Barbara Starr live at the Pentagon -- Barbara.

BARBARA STARR, CNN PENTAGON CORRESPENDENT: Good morning to you, Valerie.

Military officials are now indeed confirming nine people have died when a commercial helicopter was shot down, that according to the U.S. military, north of Baghdad about three hours ago.

This is some of the video aftermath of the scene. Military officials quickly saying they have every reason to believe indeed this helicopter was shot down.

This was a civilian helicopter, a commercial version of the Russian MI-8 helicopter. There were nine people on board -- three crew, six passengers, all civilians, all believed to have perished in this crash.

This was operated by a company called Sky Link, which operates out of Baghdad International Airport, providing commercial transport services. And that is what may prove to be very critical in this case. If indeed it is a shoot down, U.S. military officials saying they believe this is the first shoot down of a commercial helicopter in Iraq.

Of course, commercial aircraft not flying with the kind of defensive measures that military aircraft fly with. So now the question is whether these commercial aircraft are vulnerable -- Valerie.

MORRIS: Barbara Starr from Washington. Thank you.

Political chaos in Ecuador. The country's president was forced out of office Wednesday after some increasingly violent protests. Demonstrators are accusing the Lucio Gutierrez of abusing his power after he made drastic changes to the country's supreme court. Ecuador's vice president, Alfredo Palacio -- pardon me -- has been sworn in as the new president and is promising new elections.

Kentucky and Tennessee state police are looking for a 16-year-old girl, apparently abducted on her way to high school. Authorities say Janet Quijano was waiting for the school bus in Tompkinsville, Kentucky, when she was picked up by five males reportedly driving a red minivan or SUV. The FBI has joined that investigation.

One of Michael Jackson's former security guards is on the stand. The former guard claims that Jackson's staff was ordered not to allow the accuser to leave Neverland Ranch in early 2003. Meanwhile, CNN has learned that former child movie star Macaulay Culkin will testify on behalf of Jackson. Culkin has denied claims that anything sexual ever took place between him and the pop star. And more problems getting Acela back on track. Amtrak says its highs-speed trains will be sidelined until at least this summer. Service was stopped this week after railroad officials noticed cracks in the train's brakes. I'd say that's a very good idea.

Carol -- back to you.

COSTELLO: Yes, you're right about that, Valerie. Thank you.

Last-minute opposition from Republican senators pushed back the vote for John Bolton until next month. So, is the White House nominee for U.S. ambassador to the United Nations in trouble?

Joining us from Washington to talk about the fallout from the Bolton nomination and other political news is CNN political analyst and "Los Angeles Times" columnist Ron Brownstein.

Good morning -- Ron.

RON BROWNSTEIN, CNN POLITICAL ANALYST: Hi, Carol.

COSTELLO: So, the White House says -- quote -- "We're not worried at all." Oh, come on! Isn't support waning now?

BROWNSTEIN: Well, they should be worried but not necessarily panicked at this point. John Bolton is in trouble, no doubt. But if he can get out of the committee and get to the floor, he probably still has at least a 50/50 chance of winning.

They've got two big concerns, I think, at this point, Carol. One is that because of what happened this week with George Voinovich to raising the objection, the Senate Foreign Relations Committee is not going to consider this for about three more weeks. That's three more weeks of more revelations and more damaging stories, in all likelihood, as more accusations occur.

The second thing they have to worry about is sort of strength in numbers. There are at least three Republicans on the committee who have had some reservations about this. Any one of them, Chuck Hagel, Lincoln Chafee, George Voinovich, might have been reluctant to be the one who sinks him, together they seem to be reinforcing the doubts that each one holds.

COSTELLO: Let's talk about the accusations holding up the nomination. People say that Bolton is a screamer. He throws things at his employees.

I want to read you something in "USA Today" today. It says: "Bolton once threw a file folder and a tape dispenser at an American businesswoman in Moscow, disparaged her weight, and alleged she was gay in an attempt to get her to withdraw criticism of a foreign aid project."

BROWNSTEIN: Yes.

COSTELLO: Does all of this stuff really matter? BROWNSTEIN: Well, you know, look, first of all, there's a history in nomination fights, where the opponents try to raise ethical or character issues that are sort of a stand-in for ideological issues. They're very reluctant to go directly and say the president shouldn't be able to have his nominee because he's too conservative or too liberal. So, there's a long tradition here.

But, look, he is being appointed to a diplomatic position, and I think what the critics are worried about, this is someone who may not have kind of the style and deportment to really re-engage with the rest of the world at the U.N. at a time when we're trying to do that.

Also, there is a more serious underlay here, which is that some of this behavior has been aimed at intelligent analysts whose disagree with the positions that he took in speeches. And there still is at the core of this whether he tried to remove people who cast dissenting views on intelligence matters, which is obviously a sensitive issue in the wake of Iraq.

COSTELLO: Quickly now, let's talk about Tom DeLay. Some Republicans say they will investigate now ethics charges levied against Tom DeLay. Why now?

BROWNSTEIN: Half-step. On the one hand, it does reflect an awareness among Republicans that these charges are politically difficult for them, and they are trying to move toward that opinion.

On the other hand -- and it is a big "on the other hand" in this case -- what's going on is Republicans are trying to get Democrats to agree to organize the ethics committee. Democrats have blocked that because Republicans unilaterally changed the rules last year to make it tougher to have an investigation to go forward. Under the new rules if two parties deadlock, the investigation is killed. They're not offering to change that. And until they do, Democrats are unlikely to go along with this offer of an investigation of Tom DeLay.

COSTELLO: This is so complicated. Thank you, Ron Brownstein.

BROWNSTEIN: Thank you, Carol.

HEMMER: The College of Cardinals are supposed to honor this vow of secrecy and silence, too, after the conclave. But apparently, some are talking in Italy, and there are details emerging about how the election went inside that conclave in the Sistine Chapel.

Jim Bittermann has more today in Rome.

(BEGIN VIDEOTAPE)

JIM BITTERMANN, CNN CORRESPONDENT (voice over): As the new pope inspected his new office and tried out his new desk, a picture has been emerging of how a determined and highly-organized Cardinal Ratzinger, with a boost from his predecessor, was able to win election to the papacy after less than 24 hours of voting.

His fellow cardinals began to warm to Ratzinger at John Paul II's funeral. His homily hit just the right notes, some believe. But, then, it was John Paul himself who put Ratzinger in the position to deliver that homily, when he approved him as the dean of the College of Cardinals. And that position gave him an even more important platform.

As dean, Ratzinger ran the daily meetings of the cardinals to deal with church business and discuss issues. Several cardinals commented that he was masterful at it, calling on each cardinal by name, using his fluency in seven languages to answer them in their own tongue, and repeatedly suggesting pastoral means for solving problems, rather than the legalistic approach he once enforced as head of the church's Congregation of the Doctrine of the Faith.

Some were clearly impressed.

CARDINAL KEITH O'BRIEN, ARCHBISHOP of EDINBURGH: He just conducted those meetings in a very orderly manner and in a manner which pleased everyone.

BITTERMANN: But what happened next could have backfired. Just before the cardinals entered the conclave, the German cardinal made his blunt and direct appeal for a return to church fundamentals. Several cardinals, who could have gone one way or another on Ratzinger, found they liked his moral certainty.

Once inside the Sistine Chapel, the veil of secrecy descended. Still, it's known from talking to some present that there were four rounds of voting. The first produced a dozen or more favorites and no winner. Cardinal Ratzinger was out in front, but it's not clear by how much.

The next morning, as the cardinals again prayed for the Holy Spirit's help filling out their ballot papers, the result produced what one cardinal described was "a handful of names." But, again, Cardinal Ratzinger had not mustered two-thirds of the vote.

Even though there still was no white smoke, by the third unsuccessful vote it's believed Ratzinger had a clear majority. And here, the man who would become pope, may have again been helped by his predecessor.

(on camera): John Paul changed the voting rules, so that a cardinal can be elected pope after 33 ballots by simple majority, not a two-thirds vote. The cardinals were nowhere near 33 ballots, but Cardinal Ratzinger apparently did have a majority. So, it would have been clear to some cardinals that drawing out the process would only bring about the same result as an immediate two-thirds vote.

(voice over): The fourth ballot carried the day.

CARDINAL ROGER MAHONY, ARCHBISHOP OF LOS ANGELES: When he reached 77, everybody applauded, because we all knew then he had the two-thirds vote.

BITTERMANN: Cardinal Ratzinger had won, even though he was splitting the vote with at least two other opponents right to the end. We don't know, for the moment, who they are.

Jim Bittermann, CNN, Rome.

(END VIDEOTAPE)

HEMMER: Also in his first Mass as leader of the Catholic Church, Pope Benedict XVI emphasized unity within the church. He also signaled that is one of his major goals for his papacy -- Carol.

COSTELLO: Some nasty weather this morning in the Midwest, so let's head down to Atlanta to check in with Chad.

(WEATHER REPORT)

HEMMER: Identity thieves may have struck again. This time, thousands of college students could be at risk. We'll get back to that with Andy.

COSTELLO: It never ends. And one drug company says patients could save as much as 40 percent with its new prescription discount drug plan. But are there some drawbacks? We'll take a closer look next on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: The drug maker, Merck, is about to roll out a prescription discount drug card aimed at the estimated 45 million without health insurance. The managing editor of "Money" magazine is Eric Schurenberg. He's my guest now to talk about it.

Good morning to you.

ERIC SCHURENBERG, MANAGING EDITOR, "MONEY" MAGAZINE: Good morning, Bill.

HEMMER: The uninsured it's aimed at. Why them?

SCHURENBERG: Well, they're the people who need the most help. There is no benefit now for them that helps them pay for drugs, and that's a very expensive outlet.

HEMMER: You're talking about a big market, too, 45 million Americans.

SCHURENBERG: Forty-five million people, that's right.

HEMMER: The program will not require people to prove they're uninsured. Why is that?

SCHURENBERG: Well, first of all, there's no incentive if you are insured to enroll in the program. If you are insured and you have a pretty low Congress-pay, why would you do this?

The other thing is that plans that have tried this in the past have asked you to qualify on income and to prove that you're uninsured. And it's gotten complicated, and the plans have not been so successful. They haven't enrolled as many as people as they'd like.

HEMMER: So, Merck has about, what, 11 drugs out there that will come under this plan. A couple of them, Fosamax, more popular Cingular and Zocor. What does Merck get out of a program like this?

SCHURENBERG: Well, Merck could kind of use a public image makeover. I mean, when they had to pull Vioxx out amid rumors that it might cause heart attacks and that perhaps Merck wasn't as vigilant as it could have been at preventing that. That was a real blow. And all drug companies, including Merck, have been battling an image that they're overcharging for drugs.

HEMMER: But Merck is not the first company to do this, right?

SCHURENBERG: No, a lot of drug companies do this.

HEMMER: Such as Pfizer?

SCHURENBERG: Well, Pfizer is out there. Abbott Labs has joined, Wyeth. A number of them have joined partnerships to make a discount available to people.

HEMMER: What is the possibility -- what's the target here? They want to keep you from going to Canada to buy the drugs and keep the money here, is that part of the incentive? Or is that all of the incentive?

SCHURENBERG: I think that's another part of the goal. You could look at this as kind of competitive pricing. The discounts on the Merck prescription discount card will bring prices in line with the prices you can get in Canada.

HEMMER: What's the chance for abuse? If I don't have to prove that I'm insured, I can go out and get the drugs at a cheaper rate and possibly sell them for profit?

SCHURENBERG: I don't really see a downside. I think the problem of getting drugs into the hands of people who really need it and can't otherwise afford it is such a benefit, I think it's worth it.

HEMMER: All right, Eric, thanks. Eric Schurenberg from "Money" magazine. Nice to talk with you.

SCHURENBERG: My pleasure, Bill.

HEMMER: All right -- Carol.

COSTELLO: Thanks, Bill.

Thousands of students at one university may have become the latest victims of identity theft. Andy tells us what happened this time in "Minding Your Business." That's next on AMERICAN MORNING.

(COMMERCIAL BREAK)

COSTELLO: Identity theft, yes, we're going to talk about it again, because it's hitting college campuses. Thousands of students at a leading business school are learning their personal information might have been stolen.

Andy Serwer is "Minding Your Business" this morning.

Where?

ANDY SERWER, "FORTUNE" MAGAZINE: Carnegie Mellon, the Temper School of Business at Carnegie Mellon in Pittsburgh. And what did Ronald Reagan used to say? "There you go again."

I mean, this story just keeps on giving. Every day there is another case of identity theft.

This is a situation where someone hacked into Carnegie Mellon's business school computers and breached the files of 5,000 to 6,000 individuals, not only students but also applicants. Isn't that nice? So, if that you applied to the school, you might have gotten hacked.

It happened April 10. They were trying to notify people. I guess that's not too long ago. And so there you go.

Now, it has been a problem on college campuses. You might remember earlier Berkeley had a situation where a laptop was stolen with 98,000 files of individuals. There have also been breaches at Tufts and Northwestern as well. Administrators are looking into the situation there.

But, you know, universities are particularly vulnerable, because you've got a lot of computers and you've got a lot of young people who know how to use computers very well, hacking away.

COSTELLO: Because I was going to ask you, is it because the thieves are becoming more clever, or is it because universities haven't fixed the problem?

SERWER: Well, you know, I think it's all of the above. I mean, but it is -- you know, there are a lot of people there who are just working those fingers.

(CROSSTALK)

HEMMER: Thank you, Andy.

SERWER: You're welcome.

HEMMER: Back to the "Question of the Day." Here is Jack.

JACK CAFFERTY, CNN ANCHOR: Thank you, Bill.

Interest rates and inflation are rising, stock prices plunging, gas prices soaring, deficits out of control. "The Washington Post" reports this morning, that while all of this is going on, Congress is preoccupied with the death of Terri Schiavo, the ethics of Tom DeLay and the fate of the Senate filibuster. The only economic bill signed into law this year, restrictions on class-action lawsuits and a rewrite of the bankruptcy law.

According to the latest "Washington Post"/ABC News poll, 48 percent of Americans think our economy is getting worse.

The question is: What should Congress be doing about the economy?

Gabriel in Massachusetts writes: "We need leadership to stop the outsourcing, start making products in our own country so our own citizens can have jobs. It would also help if we had equitable trade policies."

Cathy in Pennsylvania: "Get going on real issues: the economy, health care costs, ridiculous prescription costs. Get rid of the loopholes for the rich. Have everyone pay a flat 15 percent of their income. They should walk in the poorer and lower middle-class shoes for one week."

Harry in Pennsylvania: "The question should be: What's the president doing about the economy?"

Heather in New Jersey: "I think Congress should start investing in hybrid automotive promotion. We need to stop relying on oil, get out of Iraq and leave Alaska alone."

And Charles in Tennessee writes: "Jack, Congress is going to do what they always about the economy: Democrats blame the Republicans, republicans blame the Democrats, and then they vote themselves a raise."

SERWER: That is true.

HEMMER: I've always thought a president gets too much credit when the economy is good and the president gets too much credit when the economy is bad.

COSTELLO: Yes, because isn't it cyclical anyway?

SERWER: Yes, well, there's not a whole lot they can do about it. But it's sort of like the rooster crowing and thinking making the sun come up when the economy is doing well.

HEMMER: Well, so what do you think Congress do then?

SERWER: Well, there isn't that much they can do. I mean, what they can do is start looking at the deficits. There is trade policy and things like that that some of the readers were talking about. But, you know, it is cyclical.

HEMMER: He who doth smirk over here.

CAFFERTY: Yes, I'm always smirking. I'm just listening, trying to learn something here.

HEMMER: Yes, I'll tell you what, are we putting too much attention on the Terri Schiavo case? Are we putting too much attention on Tom DeLay? Are we putting too much attention on it as opposed to...

CAFFERTY: What do you think?

HEMMER: Well, I know what you think, my man, 24-hour cable, baby.

COSTELLO: We've got Andy in three times today, talking about of business matters.

SERWER: Yes, I'm helping, right. Am I helping matters?

HEMMER: We know you're doing your part, Andy.

SERWER: Well, all right.

HEMMER: Thanks.

COSTELLO: In a moment, the road gets rockier for the so-called "Big Dig." Years behind schedule and billions over budget, and now some are raising questions about the safety of the roadway project. That's ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: In a moment here, we're watching this developing story out of Iraq, a commercial helicopter shot down. Nine are feared dead, and that's just part of the escalating violence there today. A full report, top of the hour here on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: A chopper possibly shot down, a car bombing, an assassination attempt, a multiple execution, violence is way up in Iraq. And now, 50 bodies may lead to a wider national split.

Macaulay Culkin may take the stand today in the Michael Jackson trial. His story could turn the tide in this case.

And the thrill rides are supposed to be scary when they're moving. This one got that way when it stopped 900 feet in the air. Two girls describe their rescue on this AMERICAN MORNING.

ANNOUNCER: From the CNN broadcaster center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.

HEMMER: Good morning, everybody. It's almost 8:00 here in New York. Soledad is off today. I'm Bill Hemmer.

COSTELLO: I'm Carol Costello. Good morning to you.

HEMMER: In a moment here, the judge says Zacarias Moussaoui is mentally competent to plead guilty to involvement in the attacks of 9/11. His mother says he's only doing it because he's not in the right mind. We'll talk the mother's attorney in a moment here.

COSTELLO: Also, Boston's Big Dig. Do you know about this? It's a traffic tunnel? It's also a $15 billion nightmare. The government says, though, don't worry about the leaks and the cracks and those big chunks falling off. We'll find out what's going on under the streets of Boston.

HEMMER: Standard maintenance, right?

COSTELLO: Yes, right.

HEMMER: It's beautiful construction project. Really transformed that town, downtown.

COSTELLO: If it works, it will be great.

HEMMER: Yes, I think it (INAUDIBLE), right?

Hey, Jack, what's happening? Good morning.

CAFFERTY: Good morning, Bill. Coming up in "The Cafferty File," you'll soon have to send your kid to an Ivy League school in a Brinks trucks. Robots ride to the rescue aboard camels in the Middle East. And a Vietnam vet waits in line for an hour-and-a-half to let Jane Fonda know he remembers.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.


Aired April 21, 2005 - 07:29   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: I think the band took the day off today, don't you, Carol?
CAROL COSTELLO, CNN ANCHOR: The music is stopping.

HEMMER: We're like little dogs actually. We don't respond unless we hear music.

COSTELLO: Exactly. So, we can't say anything else. That's it. We're going home.

HEMMER: Hey, welcome back, everyone. I'm Bill Hemmer. And good morning here.

COSTELLO: I'm Carol Costello, in for Soledad O'Brien today. Welcome to AMERICAN MORNING.

It looks like the heat under House Majority Leader Tom DeLay may be coming to a boil. We'll find out why his own party is offering to investigate him now.

HEMMER: Also, all of the secrecy around the conclave and how the cardinals elect the pope. We're hearing now details of how Cardinal Ratzinger won the election and even how Pope John Paul II may have helped swing it his way. Also, some of the cardinals are talking, too, talking about how he reacted inside the Sistine Chapel, how the other cardinals reacted around him. And there's one report that says a cardinal says that the chimney was actually backed up. There was smoke coming back in.

COSTELLO: There was smoke in the Sistine Chapel.

HEMMER: Who would know it's true or not, because of all of the secrecy vows. But anyway, that's out there, too.

So, back to the headlines and Valerie Morris is back with us again today.

How you doing, Valerie? Good morning.

VALERIE MORRIS, CNN ANCHOR: I'm doing well. Good to see you, Bill and Carol.

HEMMER: Nice to see you.

MORRIS: And "Now in the News." A commercial helicopter has been shot down in Iraq. The chopper went down between Baghdad and Tikrit.

More now on this developing story with Barbara Starr live at the Pentagon -- Barbara.

BARBARA STARR, CNN PENTAGON CORRESPENDENT: Good morning to you, Valerie.

Military officials are now indeed confirming nine people have died when a commercial helicopter was shot down, that according to the U.S. military, north of Baghdad about three hours ago.

This is some of the video aftermath of the scene. Military officials quickly saying they have every reason to believe indeed this helicopter was shot down.

This was a civilian helicopter, a commercial version of the Russian MI-8 helicopter. There were nine people on board -- three crew, six passengers, all civilians, all believed to have perished in this crash.

This was operated by a company called Sky Link, which operates out of Baghdad International Airport, providing commercial transport services. And that is what may prove to be very critical in this case. If indeed it is a shoot down, U.S. military officials saying they believe this is the first shoot down of a commercial helicopter in Iraq.

Of course, commercial aircraft not flying with the kind of defensive measures that military aircraft fly with. So now the question is whether these commercial aircraft are vulnerable -- Valerie.

MORRIS: Barbara Starr from Washington. Thank you.

Political chaos in Ecuador. The country's president was forced out of office Wednesday after some increasingly violent protests. Demonstrators are accusing the Lucio Gutierrez of abusing his power after he made drastic changes to the country's supreme court. Ecuador's vice president, Alfredo Palacio -- pardon me -- has been sworn in as the new president and is promising new elections.

Kentucky and Tennessee state police are looking for a 16-year-old girl, apparently abducted on her way to high school. Authorities say Janet Quijano was waiting for the school bus in Tompkinsville, Kentucky, when she was picked up by five males reportedly driving a red minivan or SUV. The FBI has joined that investigation.

One of Michael Jackson's former security guards is on the stand. The former guard claims that Jackson's staff was ordered not to allow the accuser to leave Neverland Ranch in early 2003. Meanwhile, CNN has learned that former child movie star Macaulay Culkin will testify on behalf of Jackson. Culkin has denied claims that anything sexual ever took place between him and the pop star. And more problems getting Acela back on track. Amtrak says its highs-speed trains will be sidelined until at least this summer. Service was stopped this week after railroad officials noticed cracks in the train's brakes. I'd say that's a very good idea.

Carol -- back to you.

COSTELLO: Yes, you're right about that, Valerie. Thank you.

Last-minute opposition from Republican senators pushed back the vote for John Bolton until next month. So, is the White House nominee for U.S. ambassador to the United Nations in trouble?

Joining us from Washington to talk about the fallout from the Bolton nomination and other political news is CNN political analyst and "Los Angeles Times" columnist Ron Brownstein.

Good morning -- Ron.

RON BROWNSTEIN, CNN POLITICAL ANALYST: Hi, Carol.

COSTELLO: So, the White House says -- quote -- "We're not worried at all." Oh, come on! Isn't support waning now?

BROWNSTEIN: Well, they should be worried but not necessarily panicked at this point. John Bolton is in trouble, no doubt. But if he can get out of the committee and get to the floor, he probably still has at least a 50/50 chance of winning.

They've got two big concerns, I think, at this point, Carol. One is that because of what happened this week with George Voinovich to raising the objection, the Senate Foreign Relations Committee is not going to consider this for about three more weeks. That's three more weeks of more revelations and more damaging stories, in all likelihood, as more accusations occur.

The second thing they have to worry about is sort of strength in numbers. There are at least three Republicans on the committee who have had some reservations about this. Any one of them, Chuck Hagel, Lincoln Chafee, George Voinovich, might have been reluctant to be the one who sinks him, together they seem to be reinforcing the doubts that each one holds.

COSTELLO: Let's talk about the accusations holding up the nomination. People say that Bolton is a screamer. He throws things at his employees.

I want to read you something in "USA Today" today. It says: "Bolton once threw a file folder and a tape dispenser at an American businesswoman in Moscow, disparaged her weight, and alleged she was gay in an attempt to get her to withdraw criticism of a foreign aid project."

BROWNSTEIN: Yes.

COSTELLO: Does all of this stuff really matter? BROWNSTEIN: Well, you know, look, first of all, there's a history in nomination fights, where the opponents try to raise ethical or character issues that are sort of a stand-in for ideological issues. They're very reluctant to go directly and say the president shouldn't be able to have his nominee because he's too conservative or too liberal. So, there's a long tradition here.

But, look, he is being appointed to a diplomatic position, and I think what the critics are worried about, this is someone who may not have kind of the style and deportment to really re-engage with the rest of the world at the U.N. at a time when we're trying to do that.

Also, there is a more serious underlay here, which is that some of this behavior has been aimed at intelligent analysts whose disagree with the positions that he took in speeches. And there still is at the core of this whether he tried to remove people who cast dissenting views on intelligence matters, which is obviously a sensitive issue in the wake of Iraq.

COSTELLO: Quickly now, let's talk about Tom DeLay. Some Republicans say they will investigate now ethics charges levied against Tom DeLay. Why now?

BROWNSTEIN: Half-step. On the one hand, it does reflect an awareness among Republicans that these charges are politically difficult for them, and they are trying to move toward that opinion.

On the other hand -- and it is a big "on the other hand" in this case -- what's going on is Republicans are trying to get Democrats to agree to organize the ethics committee. Democrats have blocked that because Republicans unilaterally changed the rules last year to make it tougher to have an investigation to go forward. Under the new rules if two parties deadlock, the investigation is killed. They're not offering to change that. And until they do, Democrats are unlikely to go along with this offer of an investigation of Tom DeLay.

COSTELLO: This is so complicated. Thank you, Ron Brownstein.

BROWNSTEIN: Thank you, Carol.

HEMMER: The College of Cardinals are supposed to honor this vow of secrecy and silence, too, after the conclave. But apparently, some are talking in Italy, and there are details emerging about how the election went inside that conclave in the Sistine Chapel.

Jim Bittermann has more today in Rome.

(BEGIN VIDEOTAPE)

JIM BITTERMANN, CNN CORRESPONDENT (voice over): As the new pope inspected his new office and tried out his new desk, a picture has been emerging of how a determined and highly-organized Cardinal Ratzinger, with a boost from his predecessor, was able to win election to the papacy after less than 24 hours of voting.

His fellow cardinals began to warm to Ratzinger at John Paul II's funeral. His homily hit just the right notes, some believe. But, then, it was John Paul himself who put Ratzinger in the position to deliver that homily, when he approved him as the dean of the College of Cardinals. And that position gave him an even more important platform.

As dean, Ratzinger ran the daily meetings of the cardinals to deal with church business and discuss issues. Several cardinals commented that he was masterful at it, calling on each cardinal by name, using his fluency in seven languages to answer them in their own tongue, and repeatedly suggesting pastoral means for solving problems, rather than the legalistic approach he once enforced as head of the church's Congregation of the Doctrine of the Faith.

Some were clearly impressed.

CARDINAL KEITH O'BRIEN, ARCHBISHOP of EDINBURGH: He just conducted those meetings in a very orderly manner and in a manner which pleased everyone.

BITTERMANN: But what happened next could have backfired. Just before the cardinals entered the conclave, the German cardinal made his blunt and direct appeal for a return to church fundamentals. Several cardinals, who could have gone one way or another on Ratzinger, found they liked his moral certainty.

Once inside the Sistine Chapel, the veil of secrecy descended. Still, it's known from talking to some present that there were four rounds of voting. The first produced a dozen or more favorites and no winner. Cardinal Ratzinger was out in front, but it's not clear by how much.

The next morning, as the cardinals again prayed for the Holy Spirit's help filling out their ballot papers, the result produced what one cardinal described was "a handful of names." But, again, Cardinal Ratzinger had not mustered two-thirds of the vote.

Even though there still was no white smoke, by the third unsuccessful vote it's believed Ratzinger had a clear majority. And here, the man who would become pope, may have again been helped by his predecessor.

(on camera): John Paul changed the voting rules, so that a cardinal can be elected pope after 33 ballots by simple majority, not a two-thirds vote. The cardinals were nowhere near 33 ballots, but Cardinal Ratzinger apparently did have a majority. So, it would have been clear to some cardinals that drawing out the process would only bring about the same result as an immediate two-thirds vote.

(voice over): The fourth ballot carried the day.

CARDINAL ROGER MAHONY, ARCHBISHOP OF LOS ANGELES: When he reached 77, everybody applauded, because we all knew then he had the two-thirds vote.

BITTERMANN: Cardinal Ratzinger had won, even though he was splitting the vote with at least two other opponents right to the end. We don't know, for the moment, who they are.

Jim Bittermann, CNN, Rome.

(END VIDEOTAPE)

HEMMER: Also in his first Mass as leader of the Catholic Church, Pope Benedict XVI emphasized unity within the church. He also signaled that is one of his major goals for his papacy -- Carol.

COSTELLO: Some nasty weather this morning in the Midwest, so let's head down to Atlanta to check in with Chad.

(WEATHER REPORT)

HEMMER: Identity thieves may have struck again. This time, thousands of college students could be at risk. We'll get back to that with Andy.

COSTELLO: It never ends. And one drug company says patients could save as much as 40 percent with its new prescription discount drug plan. But are there some drawbacks? We'll take a closer look next on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: The drug maker, Merck, is about to roll out a prescription discount drug card aimed at the estimated 45 million without health insurance. The managing editor of "Money" magazine is Eric Schurenberg. He's my guest now to talk about it.

Good morning to you.

ERIC SCHURENBERG, MANAGING EDITOR, "MONEY" MAGAZINE: Good morning, Bill.

HEMMER: The uninsured it's aimed at. Why them?

SCHURENBERG: Well, they're the people who need the most help. There is no benefit now for them that helps them pay for drugs, and that's a very expensive outlet.

HEMMER: You're talking about a big market, too, 45 million Americans.

SCHURENBERG: Forty-five million people, that's right.

HEMMER: The program will not require people to prove they're uninsured. Why is that?

SCHURENBERG: Well, first of all, there's no incentive if you are insured to enroll in the program. If you are insured and you have a pretty low Congress-pay, why would you do this?

The other thing is that plans that have tried this in the past have asked you to qualify on income and to prove that you're uninsured. And it's gotten complicated, and the plans have not been so successful. They haven't enrolled as many as people as they'd like.

HEMMER: So, Merck has about, what, 11 drugs out there that will come under this plan. A couple of them, Fosamax, more popular Cingular and Zocor. What does Merck get out of a program like this?

SCHURENBERG: Well, Merck could kind of use a public image makeover. I mean, when they had to pull Vioxx out amid rumors that it might cause heart attacks and that perhaps Merck wasn't as vigilant as it could have been at preventing that. That was a real blow. And all drug companies, including Merck, have been battling an image that they're overcharging for drugs.

HEMMER: But Merck is not the first company to do this, right?

SCHURENBERG: No, a lot of drug companies do this.

HEMMER: Such as Pfizer?

SCHURENBERG: Well, Pfizer is out there. Abbott Labs has joined, Wyeth. A number of them have joined partnerships to make a discount available to people.

HEMMER: What is the possibility -- what's the target here? They want to keep you from going to Canada to buy the drugs and keep the money here, is that part of the incentive? Or is that all of the incentive?

SCHURENBERG: I think that's another part of the goal. You could look at this as kind of competitive pricing. The discounts on the Merck prescription discount card will bring prices in line with the prices you can get in Canada.

HEMMER: What's the chance for abuse? If I don't have to prove that I'm insured, I can go out and get the drugs at a cheaper rate and possibly sell them for profit?

SCHURENBERG: I don't really see a downside. I think the problem of getting drugs into the hands of people who really need it and can't otherwise afford it is such a benefit, I think it's worth it.

HEMMER: All right, Eric, thanks. Eric Schurenberg from "Money" magazine. Nice to talk with you.

SCHURENBERG: My pleasure, Bill.

HEMMER: All right -- Carol.

COSTELLO: Thanks, Bill.

Thousands of students at one university may have become the latest victims of identity theft. Andy tells us what happened this time in "Minding Your Business." That's next on AMERICAN MORNING.

(COMMERCIAL BREAK)

COSTELLO: Identity theft, yes, we're going to talk about it again, because it's hitting college campuses. Thousands of students at a leading business school are learning their personal information might have been stolen.

Andy Serwer is "Minding Your Business" this morning.

Where?

ANDY SERWER, "FORTUNE" MAGAZINE: Carnegie Mellon, the Temper School of Business at Carnegie Mellon in Pittsburgh. And what did Ronald Reagan used to say? "There you go again."

I mean, this story just keeps on giving. Every day there is another case of identity theft.

This is a situation where someone hacked into Carnegie Mellon's business school computers and breached the files of 5,000 to 6,000 individuals, not only students but also applicants. Isn't that nice? So, if that you applied to the school, you might have gotten hacked.

It happened April 10. They were trying to notify people. I guess that's not too long ago. And so there you go.

Now, it has been a problem on college campuses. You might remember earlier Berkeley had a situation where a laptop was stolen with 98,000 files of individuals. There have also been breaches at Tufts and Northwestern as well. Administrators are looking into the situation there.

But, you know, universities are particularly vulnerable, because you've got a lot of computers and you've got a lot of young people who know how to use computers very well, hacking away.

COSTELLO: Because I was going to ask you, is it because the thieves are becoming more clever, or is it because universities haven't fixed the problem?

SERWER: Well, you know, I think it's all of the above. I mean, but it is -- you know, there are a lot of people there who are just working those fingers.

(CROSSTALK)

HEMMER: Thank you, Andy.

SERWER: You're welcome.

HEMMER: Back to the "Question of the Day." Here is Jack.

JACK CAFFERTY, CNN ANCHOR: Thank you, Bill.

Interest rates and inflation are rising, stock prices plunging, gas prices soaring, deficits out of control. "The Washington Post" reports this morning, that while all of this is going on, Congress is preoccupied with the death of Terri Schiavo, the ethics of Tom DeLay and the fate of the Senate filibuster. The only economic bill signed into law this year, restrictions on class-action lawsuits and a rewrite of the bankruptcy law.

According to the latest "Washington Post"/ABC News poll, 48 percent of Americans think our economy is getting worse.

The question is: What should Congress be doing about the economy?

Gabriel in Massachusetts writes: "We need leadership to stop the outsourcing, start making products in our own country so our own citizens can have jobs. It would also help if we had equitable trade policies."

Cathy in Pennsylvania: "Get going on real issues: the economy, health care costs, ridiculous prescription costs. Get rid of the loopholes for the rich. Have everyone pay a flat 15 percent of their income. They should walk in the poorer and lower middle-class shoes for one week."

Harry in Pennsylvania: "The question should be: What's the president doing about the economy?"

Heather in New Jersey: "I think Congress should start investing in hybrid automotive promotion. We need to stop relying on oil, get out of Iraq and leave Alaska alone."

And Charles in Tennessee writes: "Jack, Congress is going to do what they always about the economy: Democrats blame the Republicans, republicans blame the Democrats, and then they vote themselves a raise."

SERWER: That is true.

HEMMER: I've always thought a president gets too much credit when the economy is good and the president gets too much credit when the economy is bad.

COSTELLO: Yes, because isn't it cyclical anyway?

SERWER: Yes, well, there's not a whole lot they can do about it. But it's sort of like the rooster crowing and thinking making the sun come up when the economy is doing well.

HEMMER: Well, so what do you think Congress do then?

SERWER: Well, there isn't that much they can do. I mean, what they can do is start looking at the deficits. There is trade policy and things like that that some of the readers were talking about. But, you know, it is cyclical.

HEMMER: He who doth smirk over here.

CAFFERTY: Yes, I'm always smirking. I'm just listening, trying to learn something here.

HEMMER: Yes, I'll tell you what, are we putting too much attention on the Terri Schiavo case? Are we putting too much attention on Tom DeLay? Are we putting too much attention on it as opposed to...

CAFFERTY: What do you think?

HEMMER: Well, I know what you think, my man, 24-hour cable, baby.

COSTELLO: We've got Andy in three times today, talking about of business matters.

SERWER: Yes, I'm helping, right. Am I helping matters?

HEMMER: We know you're doing your part, Andy.

SERWER: Well, all right.

HEMMER: Thanks.

COSTELLO: In a moment, the road gets rockier for the so-called "Big Dig." Years behind schedule and billions over budget, and now some are raising questions about the safety of the roadway project. That's ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: In a moment here, we're watching this developing story out of Iraq, a commercial helicopter shot down. Nine are feared dead, and that's just part of the escalating violence there today. A full report, top of the hour here on AMERICAN MORNING.

(COMMERCIAL BREAK)

HEMMER: A chopper possibly shot down, a car bombing, an assassination attempt, a multiple execution, violence is way up in Iraq. And now, 50 bodies may lead to a wider national split.

Macaulay Culkin may take the stand today in the Michael Jackson trial. His story could turn the tide in this case.

And the thrill rides are supposed to be scary when they're moving. This one got that way when it stopped 900 feet in the air. Two girls describe their rescue on this AMERICAN MORNING.

ANNOUNCER: From the CNN broadcaster center in New York, this is AMERICAN MORNING with Bill Hemmer and Soledad O'Brien.

HEMMER: Good morning, everybody. It's almost 8:00 here in New York. Soledad is off today. I'm Bill Hemmer.

COSTELLO: I'm Carol Costello. Good morning to you.

HEMMER: In a moment here, the judge says Zacarias Moussaoui is mentally competent to plead guilty to involvement in the attacks of 9/11. His mother says he's only doing it because he's not in the right mind. We'll talk the mother's attorney in a moment here.

COSTELLO: Also, Boston's Big Dig. Do you know about this? It's a traffic tunnel? It's also a $15 billion nightmare. The government says, though, don't worry about the leaks and the cracks and those big chunks falling off. We'll find out what's going on under the streets of Boston.

HEMMER: Standard maintenance, right?

COSTELLO: Yes, right.

HEMMER: It's beautiful construction project. Really transformed that town, downtown.

COSTELLO: If it works, it will be great.

HEMMER: Yes, I think it (INAUDIBLE), right?

Hey, Jack, what's happening? Good morning.

CAFFERTY: Good morning, Bill. Coming up in "The Cafferty File," you'll soon have to send your kid to an Ivy League school in a Brinks trucks. Robots ride to the rescue aboard camels in the Middle East. And a Vietnam vet waits in line for an hour-and-a-half to let Jane Fonda know he remembers.

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